HomeMy WebLinkAbout062403 CC Agenda
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AGENDA
TEMECULA CITY COUNCIL
A REGULAR MEETING
CITY COUNCIL CHAMBERS
43200 BUSINESS PARK DRIVE
JUNE 24, 2003 - 7:00 P.M.
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.
5:30 P.M. - Closed Session of tile City Council and Redevelopment Agency pursuallt
to Government Code Sections:
1. Conference witll City Attorney and legal counsel pursuant tQ Government Code
Section 54956.8 regarding real property acquisition located on tile west side of
Interstate 15 in tile City of Murrieta (APN 910-262-005). Undernegotiationis.tlle
price and terms of tile real property interests. TIle negotiatillg>partieSllre tile City
of Temecula and Mr. Jo!;eph Harold and Mr. Charles Hebard. The City
negotiators are Shawn Nelson, Jim O'Grady, and Bill Hughes.
2. Conference with City Attorney and legal counsel pursuant to Government Code
Section 54956.8 regarding real property acquisition located south of Rancho
Ford, east of Interstate 15, and west of Ynez Road (approximately 40 acres).
Under negotiation is the price and terms of the real property interests. The
negotiating parties are the City of Temecula and Bill Jollnson. City negotiators
are Shawn Nelson and Jim O'Grady.
3. Conference with City Attorney and legal counsel pursuant to Government Code
Section 54956.9(c) with respect to one matter of whether to initiate litigation.
With respect to this matter, the City Attorney has determined that a point has
been reached where there is a significant exposure to litigation involving the City
based on existing facts and circumstances and the City will decide whether to
initiate litigation.
4. Public Employee Performance Evaluation of the incumbent for the position of
City Manager pursuant to Government Code Sections 54957 and 54957.6
Public Information concerning existing litigation between the City and various parties
may be acquired by reviewing the public documents held by the City Clerk.
Next in Order:
Ordinance: No. 2003-06
Resolution: No. 2003-74
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CALL TO ORDER:
Mayor Jeff Stone
Prelude Music:
Chris Jordan and Antonio Pontarelli
Invocation:
Pastor Scott Treadway of Rancho Community Church
Flag Salute:
Councilman Comerchero
ROLL CALL:
Comerchero, Naggar, Pratt, Roberts, Stone
PRESENTATIONS/PROCLAMATIONS
Fire Exolorers Presentation
PUBLIC COMMENTS
A total of 30 minutes is provided so members of the public may address the Council on
items that appear within the Consent Calendar or ones that are not listed on the agenda.
Speakers are limited to two (2) minutes each. If you desire to speak to the Council on
an item which is listed on the Consent Calendar or a matter not listed on the agenda, a
pink "Request to Speak" form should be filled out and filed with the City Clerk.
When you are called to speak, please come forward and state your name for the record.
For all Public Hearing or Council Business matters on the agenda, a "Request to
Speak" form must be filed with the City Clerk orior to the Council addressing that item.
There is a five (5) minute time limit for individual speakers.
CITY COUNCIL REPORTS
Reports by the members of the City Council on matters not on the agenda will be made
at this time. A total, not to exceed, ten (10) minutes will be devoted to these reports.
CONSENT CALENDAR
NOTICE TO THE PUBLIC
All matters listed under Consent Calendar are considered to be routine and all will
be enacted by one roll call vote. There will be no discussion of these items unless
Members of the City Council request specific items be removed from the Consent
Calendar for separate action.
1 Standard Ordinance and Resolution Adootion Procedure
RECOMMENDATION:
1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the
agenda.
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2 Approval of Minutes
RECOMMENDATION:
2.1 Approve the minutes of May 13, 2003
3 Resolution Approvina List of Demands
RECOMMENDATION:
3.1 Adopt a resolution entitled:
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS
AS SET FORTH IN EXHIBIT A
4 Riverside Countv Librarv Contract Amendment NO.6
RECOMMENDATION:
4.1 Approve Amendment NO.6 to the agreement to provide Library Services (additional
staff);
4.2 Authorize the expenditure of an amount not to exceed $150,000 to fund the
Temecula Library Volunteer Coordinator half-time position and to subsidize funding
to maintain the Senior Reference Librarian and Reference Librarian positions for
fiscal year 2003-04.
5 Offer to purchase City propertv for Murrieta Creek Proiect
RECOMMENDATION:
5.1 Adopt resolution entitled:
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING THE OFFER TO PURCHASE 64,600
SQUARE FEET OF REAL PROPERTY BEING A PORTION OF
APN 922-100-017 BY THE RIVERSIDE COUNTY FLOOD
CONTROL AND WATER CONSERVATION DISTRICT FOR THE
PURCHASE PRICE OF $161,500.00 TO BE USED FOR FLOOD
CONTROL PURPOSES
5.2 Assign the purchase price of $161,500.00 to Riverside County Flood Control and
Water Conservation District as a portion of the City's contribution to funding the
Murrieta Creek Project.
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6 Public Works Fiscal Year 2003-2004 Annual Maintenance Aoreements
RECOMMENDATION:
6.1 Approve the minor annual maintenance and construction contracts for Fiscal Year
2003-2004 with:
. Becker Engineering in an amount not to exceed $100,000.00;
. Cajer Equipment Rental in an amount not to exceed $100,000.00;
. Imperial Paving Company, Inc. in an amount not to exceed $100,000.00;
. Monteleone Contractors, Inc. in an amount not to exceed $100,000.00;
. Murrieta Development Co. in an amount not to exceed $100,000.00;
. Rene's Commercial Management in an amount not to exceed $100,000.00;
. Toran Development & Construction in an amount not to exceed $100,000.00.
7 Citywide Tree Trimmino Maintenance Services
RECOMMENDATION:
7.1 Award the Citywide Tree Trimming Maintenance Services contract to West Coast
Arborists, Inc. for $100,000.00 and authorize the Mayor to execute the contract;
7.2 Authorize the City Manager to approve change orders not to exceed the
contingency amount of $10,000.00 which is equal to 10% of the contract amount.
8 Amendment NO.4 to Construction Contract for Fiscal Year 2003-2004 Street Strioino
Prooram - Proiect No. PW01-12
RECOMMENDATION:
8.1 Approve Amendment NO.4 to the Construction Contract with C-18, Inc. for the
Fiscal Year 2003-2004 Street Striping Project - Project No. PW01-12 - for an
amount of $225,000.00 and authorize the Mayor to execute the amendment.
9 Amendment NO.1 to Consultant Services Aoreement with KRW & Associates
RECOMMENDATION:
9.1 Approve Amendment NO.1 to the Engineering Plan Check, Map and Legal
Description Review for Fiscal Year 2002-2003 with KRW & Associates for an
amount not to exceed $5,000.00 and authorize the Mayor to execute the
amendment.
10 Aoreement with the Temecula Sunrise Rotarv Club - Placement and Maintenance of Bus
Benches
RECOMMENDATION:
10.1 Approve a three-year agreement with the Temecula Sunrise Rotary Club, a
California non-profit corporation, for the placement and maintenance of 43 bus
benches throughout the City in an amount of $12,000 for Fiscal Year 2003-04 and
authorize the Mayor to execute the agreement in substantially the form attached;
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10.2 Authorize the City Manager to approve change orders not to exceed the
contingency amount of $1,200.00 which is equal to 10% of the agreement amount.
11 Annual Professional Services Aoreements for Real Estate Aooraisal Services for the
various Caoitallmprovement Proiects for FY2003-2004
RECOMMENDATION:
11.1 Approve an agreement with Robert Shea Perdue Real Estate Appraisal in the
amount of $60,000.00 to provide as needed real estate appraisal services;
11.2 Approve an agreement with Mason & Mason Real Estate Appraisers & Consultants
in the amount $60,000.00 to provide as needed real estate appraisal services;
11.3 Authorize the Mayor to execute the agreements.
12 Annual Professional Services Aoreements for Geotechnical and Material Testino Services
for various Caoitallmorovement Proiects for FY2003-2004
RECOMMENDATION:
12.1 Approve the agreement with Leighton Consulting, Inc. in the amount of $60,000.00
to provide as needed geotechnical and materials testing services;
12.2 Approve an agreement with EnGEN Public Works Services, LLC, in the amount of
$60,000.00 to provide as needed geotechnical and material testing services;
12.3 Authorize the Mayor to execute the agreements.
13 Annual Professional Services Aoreements for Enoineerino and Construction Survev
Services for various Caoitallmorovement Proiects for FY2003-2004
RECOMMENDATION:
13.1 Approve the annual agreement with Kevin Cozad & Associates, Inc. in the amount
of $60,000.00 to provide as needed engineering and construction survey services;
13.2 Approve the annual agreement with Project Design Consultants in the amount of
$60,000.00 to provide as needed engineering and construction survey services;
13.3 Authorize the Mayor to execute the agreements.
14 French Vallev Parkwav/l-15 Overcrossino and Interchanoe Imorovements - Consultant
Aoreement - Proiect No. PW02-11
RECOMMENDATION:
14.1 Approve an agreement with Value Management Strategies, Inc. in an amount not to
exceed $31,780.60 to provide the necessary Value Analysis Services needed for
the French Valley Parkway/I-15 Overcrossing and Interchange Improvements-
Project No. PW02-11 - and authorize the Mayor to execute the agreement;
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14.2 Authorize the City Manager to approve change orders not to exceed the
contingency amount of $3,178.06 which is equal to 10% of the agreement amount.
15 Award the Construction Contract for Proiect No. PW02-13 - Pavement Rehabilitation
Prooram - Rancho California Road, Maroarita Road to Meadows Parkwav
RECOMMENDATION:
15.1 Award of construction contract for Project No. PW02-13 Pavement Rehabilitation
Program - Rancho California Road, Margarita Road to Meadows Parkway to R.J.
Noble Company in the amount of $629,433.50 an authorize the Mayor to execute
the contract;
15.2 Authorize the City Manager to approve change orders not to exceed the
contingency amount of $62,943.35 which is equal to 10% of the contract amount.
16 Assessment District No. 03-04 (John Warner Road)
RECOMMENDATION:
16.1 Accept the petition requesting the initiation of proceedings to consider the formation
of an Assessment District to finance the costs of Street and Storm Drain
Improvements - proposed John Warner Road Assessment District;
16.2 Adopt a resolution entitled:
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA, OF INTENTION TO ACQUIRE
IMPROVEMENTS AND TO FORM ASSESSMENT DISTRICT
NO. 03-04 (JOHN WARNER ROAD)
16.3 Adopt a resolution entitled:
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA, OF APPROVAL OF PRELIMINARY
ENGINEER'S REPORT DESCRIBING BOUNDARIES OF
PROPOSED ASSESSMENT DISTRICT AND CALLING FOR
PUBLIC MEETING AND HEARING, AND ELECTION -
ASSESSMENT DISTRICT NO. 03-04 (JOHN WARNER ROAD)
16.4 Approve the Construction Plans and Specifications and authorize the Department of
Public Works to solicit construction bids for the John Warner Road Assessment
District Improvements - Project No. PW02-07.
17 Tract Mao No. 26941 (located south of Pauba Road and east of Butterfield Staoe Road)
RECOMMENDATION:
17.1 Approve Tract Map No. 26941 in conformance with the conditions of approval.
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18 Communitv Services Fiscal Year 2003-2004 Annual Maintenance Aoreements
RECOMMENDATION:
18.1 Rizzo Construction in an amount not to exceed $75,000;
18.2 Murrieta Development in an amount not to exceed $75,000;
18.3 Becker Engineering Company in an amount not to exceed $75,000;
18.4 Power Distributors, Inc. in an amount not to exceed $50,000;
18.5 Strong's Painting in an amount not to exceed $100,000;
18.6 Imperial Paving Company, Inc. in an amount not to exceed $50,000;
18.7 NPG, Inc. in an amount not to exceed $50,000;
18.8 Dennis A. Hibbets Plumbing in an amount not to exceed $50,000.
19 Second Amendment to the Facilitv Alarm Svstems Service and Monitorino Aoreement
with Com outer Alert Svstems for FY2003-04
RECOMMENDATION:
19.1 Approve the Second Amendment for the Facility Alarm Systems Service and
Monitoring Agreement with Computer Alert Systems, Inc. to extend the term of the
Agreement to June 30, 2004;
19.2 Authorize the expenditure of funds in the amount of $25,000.00 for alarm monitoring
and repair services;
19.3 Approve 10% contingency in the amount of $2,500.00.
20 Aoreement orovidino for a Modified Schedule for aooroval and recordation of Covenants.
Conditions. and Restrictions for a oortion of the Crowne Hill Development Tract Mao No.
2S941
RECOMMENDATION:
20.1 Approve the Covenant between the City of Temecula and PCC III-Crowne Hill, LLC,
and authorize the Mayor to execute the Covenant on behalf of the City.
21 Professional Landscaoe Plan Check and Insoection Services Aoreement for Fiscal Year
2003-2004
RECOMMENDATION:
21.1 Approve the annual professional services agreement for Fiscal Year 2003 -2004
with PELA for landscape plan check and inspection services in the amount of
$25,000.00 and authorize the Mayor to execute the agreement.
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22 Corooration for Better Housino Senior Proiect
RECOMMENDATION:
22.1 Adopt a resolution entitled:
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING FIRST AMENDMENT TO THE
DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF
TEMECULA AND 28500 PUJOL STREET, A CALIFORNIA
LIMITED PARTNERSHIP
********************
RECESS CITY COUNCIL MEETING TO SCHEDULED MEETINGS OF
THE TEMECULA COMMUNITY SERVICES DISTRICT,
THE CITY OF TEMECULA REDEVELOPMENT AGENCY,
AND
THE TEMECULA PUBLIC FINANCING AUTHORITY
***********
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Next in Order:
Ordinance: No. CSD 2003-01
Resolution: No. CSD 2003-10
CALL TO ORDER: President Jeff Comerchero
ROLL CALL:
DIRECTORS:
Naggar, Pratt, Roberts, Stone, Comerchero
PUBLIC COMMENTS
A total of 15 minutes is provided so members of the public may address the Board of
Directors on items that are not listed on the agenda or on the Consent Calendar.
Speakers are limited to two (2) minutes each. If you decide to speak to the Board of
Directors on an item not on the agenda or on the Consent Calendar, a pink "Request to
Speak" form should be filled out and filed with the City Clerk.
When you are called to speak, please come forward and state your name for the record.
For all other agenda items, a "Request to Speak" form must be filed with the City Clerk
Prior to the Board of Directors addressing that item. There is a five (5) minute time limit
for individual speakers.
Anyone wishing to address the Board of Directors should present a completed pink
"Request to Speak" form to the City Clerk. When you are called to speak, please
come forward and state 'lour name and address for the record.
CONSENT CALENDAR
1 Minutes
RECOMMENDATION:
1.1 Approve the minutes of June 10, 2003.
2 First Amendment to the Janitorial Maintenance Services Contract for Park Restrooms
and Picnic Shelters for FY 2003-04
RECOMMENDATION:
2.1 Approve the First Amendment with Grace Building Maintenance Company, which
will exercise the City's option for a one-year extension of the agreement; the
agreement will be extended through June 30, 2004;
2.2 Authorize the expenditure of funds in the amount of $53,730.00 for Janitorial
Maintenance Services;
2.3 Approve a 10% contingency in the amount of $5,373.00.
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3 Ratification of Election Results Tract No. 19872-1, -2, -3, -4, -5, and Final (Loma Linda
Tract)
RECOMMENDATION:
3.1 Adopt a resolution entitled:
RESOLUTION NO. CSD 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CITY OF TEMECULA COMMUNITY SERVICES DISTRICT
RECITING THE FACT OF THE SPECIAL TEMECULA
COMMUNITY SERVICES DISTRICT MAIL-IN BALLOT
ELECTION HELD ON JUNE 12, 2003, DECLARING THE
RESULTS AND SUCH OTHER MATTERS AS PROVIDED BY
LAW
4 Inclusion of Tracts into Service Level Band Acceotance of Slooe easement Areas
into Service Level C for Fiscal Year 2003-2004
RECOMMENDATION:
4.1 Adopt a resolution entitled:
RESOLUTION NO. CSD 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA COMMUNITY SERVICES DISTRICT ACCEPTING
CERTAIN TRACTS INTO TCSD SERVICE LEVEL B FOR
PURPOSES OF FUNDING THE ENERGY CHARGES FOR
RESIDENTIAL STREET LIGHTS BEGINNING FISCAL YEAR
2003-2004
4.2 Adopt a resolution entitled:
RESOLUTION NO. CSD 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA COMMUNITY SERVICES DISTRICT ACCEPTING
CERTAIN SLOPE AND LANDSCAPE AREAS WITHIN TRACT
MAP NOS. 19872-1, -2, -3, -4, -5, AND -00 (FINAL) INTO
SERVICE LEVEL C FOR MAINTENANCE PURPOSES
BEGINNING FISCAL YEAR 2003.2004
4.3 Authorize the City Clerk/District Secretary to record the slope easement
Documents.
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PUBLIC HEARING
5 TCSD Prooosed Rates and Charoes for Fiscal Year 2003-2004
RECOMMENDATION:
5.1 Adopt a resolution entitled:
RESOLUTION NO. 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING
RATES AND CHARGES FOR SERVICE LEVEL B -
RESIDENTIAL STREET LIGHTING, SERVICE LEVEL C -
PERIMETER LANDSCAPING, AND SERVICE LEVEL D -
REFUSE AND RECYCLING COLLECTION SERVICES FOR
FISCAL YEAR 2003-2004
5.2 Adopt a resolution entitled:
RESOLUTION NO. 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING
RATES AND CHARGES FOR SERVICE LEVEL R - ROAD
MAINTENANCE SERVICES FOR FISCAL YEAR 2003-2004
DEPARTMENTAL REPORT
DIRECTOR OF COMMUNITY SERVICES REPORT
GENERAL MANAGER'S REPORT
BOARD OF DIRECTORS' REPORTS
ADJOURNMENT
Next regular meeting: Tuesday, July 8, 2003, 7:00 PM, City Council Chambers, 43200 Business
Park Drive, Temecula, California.
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Next in Order:
Ordinance: No. RDA 2003-01
Resolution: No. RDA 2003-12
CALL TO ORDER: Chairperson Ron Roberts
ROLL CALL
AGENCY MEMBERS:
Comerchero. Naggar, Pratt, Stone, Roberts
PUBLIC COMMENTS
A total of 15 minutes is provided so members of the public may address the
Redevelopment Agency on items that are not listed on the agenda or on the Consent
Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the
Board of Directors on an item not on the agenda or on the Consent Calendar, a pink
"Request to Speak" form should be filled out and filed with the City Clerk.
When you are called to speak, please come forward and state your name for the record.
For all other agenda items, a "Request to Speak" form must be filed with the City Clerk
Prior to the Board of Directors addressing that item. There is a five (5) minute time limit
for individual speakers.
Anyone wishing to address the Board of Directors should present a completed pink
"Request to Speak" form to the City Clerk. When you are called to speak, please
come forward and state 'lour name and address for the record.
CONSENT CALENDAR
1 Minutes
RECOMMENDATION:
1.1 Approve the minutes of June 10, 2003.
2 Corooration for Better Housino Senior Housino Proiect
RECOMMENDATION:
2.1 Adopt a resolution entitled:
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RESOLUTION NO. 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA
APPROVING FIRST AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND
28500 PUJOL STREET, A CALIFORNIA LIMITED
PARTNERSHIP
AGENCY BUSINESS
3 Interim Lease of Aoencv Prooerly - 27500 Jefferson Avenue
RECOMMENDATION:
3.1 Approve a lease agreement with the Donna L. Reeves Trust UTD 7-25-90 for
Agency property located at 27500 Jefferson Avenue for an amount of $7,500 per
month.
DEPARTMENTAL REPORT
EXECUTIVE DIRECTOR'S REPORT
AGENCY MEMBERS' REPORTS
ADJOURNMENT
Next regular meeting: Tuesday, July 8, 2003. City Council Chambers, 43200 Business Park Drive,
Temecula, California.
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Next in Order:
Ordinance: No. TPFA 2003-02
Resolution: No. TPFA 2003-12
CALL TO ORDER: Chairperson Jeff Stone
ROLL CALL
AGENCY MEMBERS:
Comerchero, Naggar, Pratt, Roberts, Stone
PUBLIC COMMENTS
A total of 15 minutes is provided so members of the public may address the Temecula
Public Financing Authority on items that are not listed on the agenda or on the Consent
Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the
Board of Directors on an item not on the agenda or on the Consent Calendar, a pink
"Request to Speak" form should be filled out and filed with the City Clerk.
When you are called to speak, please come forward and state your name for the record.
For all other agenda items, a "Request to Speak" form must be filed with the City Clerk
Prior to the Board of Directors addressing that item. There is a five (5) minute time limit
for individual speakers.
Anyone wishing to address the Board of Directors should present a completed pink
"Request to Speak" form to the City Clerk. When you are called to speak, please
come forward and state 'lour name and address for the record.
CONSENT CALENDAR
1 Minutes
RECOMMENDATION:
1.1 Approve the minutes of May 13, 2003.
PUBLIC HEARING
Any person may submit written comments to the Temecula Public Financing Authority
before a public hearing or may appear and may 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.
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2 Formation of Community Facilities District No. 01-3 (Wolf Creek) and Amendment of
of Resolution of Intention to form the District
(Continued from May 13, 2003)
RECOMMENDATION:
2.1 Continue the public hearing to the meeting of July 8, 2003.
AUTHORITY BUSINESS
3 Aooroval of Issuance of Bonds for Temecula Public Financino Authoritv Community
Facilities District No. 03-1 (Crowne Hill)
(Continued from May 13, 2003)
RECOMMENDATION:
3.1 Adopt a resolution entitled:
RESOLUTION NO. TPFA 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING
THE ISSUANCE OF SPECIAL TAX BONDS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY FOR
TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY
FACILITIES DISTRICT NO. 03-1 (CROWNE HILL) APPROVING
AND DIRECTING THE EXECUTION OF A FISCAL AGENT
AGREEMENT AND APPROVING OTHER RELATED
DOCUMENTS AND ACTIONS
EXECUTIVE DIRECTOR'S REPORT
BOARD MEMBERS' REPORTS
ADJOURNMENT
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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.
23 Reauest Zone Chanae from L-1 to L-2 (PA02-03721 and Tentative Tract Mao to create
seven residential lots ranaina from .5 to .82 acres in lot area (PA02-0371)
RECOMMENDATION:
23.1 Continue the public hearing off calendar and renotice it.
24 Develooment Code Amendment (Plannina Aoolication PA03-011 Ol - Secondarv Dwellina
Unit Aooroval Authoritv
RECOMMENDATION:
24.1 Introduce and read by title only an ordinance entitled:
ORDINANCE NO. 03-_
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMECULA AMENDING CHAPTER 17 OF THE TEMECULA
MUNICIPAL CODE TO MODIFY THE PROCEDURES FOR
APPROVING SECONDARY DWELLING UNITS (PLANNING
APPLICATION PA03-0110)
COUNCIL BUSINESS
25 Consideration of Telecommunications Master Plan
RECOMMENDATION:
25.1 Receive and file this report.
26 Amendment to Animal Friends of the Vallev Contract for Animal Control Services and
Increase in Doa License Fees
RECOMMENDATION:
26.1 Approve a one-year contract extension for Animal Control Services with Animal
Friends of the Valley not to exceed $130,000;
26.2 Authorize the City Manager to approve additional service not to exceed 10% of the
amount of the agreement;
26.3 Adopt a resolution entitled:
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RESOLUTION NO. 03"_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA, ESTABLISHING ANIMAL
LICENSING FEES
26.4 Appoint one member as a liaison to work with staff and Animal Friends to explore
the details of a new shelter.
27 General Plan Amendment and Zone Chanae for the Vallev Christian Fellowshio site
located at the southwest corner of Maraarita and De Portola Roads (PW03-0260l
RECOMMENDATION:
27.1 Provide direction to staff on a General Plan Amendment and Change of Zone for the
property located at the southwest corner of Murrieta and De Portola Roads based
upon the recommendations of the General Plan Community Advisory Committee.
28 Ordinance Amendina Council Comoensation
RECOMMENDATION:
28.1 Introduce and read by title only an ordinance entitled:
ORDINANCE NO. 03"_
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMECULA AMENDING SECTION 2.04.050 OF THE
TEMECULA MUNICIPAL CODE REVISING THE SALARY FOR
COUNCIL MEMBERS TO SIX HUNDRED DOLLARS PER
MONTH AS PROVIDED IN GOVERNMENT CODE SECTION
36516 AND PROVIDING FOR REIMBURSEMENT OF
NECESSARY EXPENSES
DEPARTMENTAL REPORTS
CITY MANAGER'S REPORT
CITY ATTORNEY'S REPORT
ADJOURNMENT
Next regular meeting: City Council, Tuesday, July 8,2003, at 7:00 P.M., City Council Chambers,
43200 Business Park Drive, Temecula, California.
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PROCLAMA TIONS
AND
PRESENTATIONS
ITEM 1
ITEM 2
MINUTES OF A REGULAR MEETING
OF
THE TEMECULA CITY COUNCIL
MAY 13, 2003
After the Closed Session that convened at 6:00 P.M., the City Council convened in Open
Session at 7:00 P.M., on Tuesday, May 13, 2003, in the City Council Chambers of Temecula
City Hall, 43200 Business Park Drive, Temecula, California.
Present:
Council members:
Comerchero, Naggar, Pratt, Roberts, Stone
Absent:
Councilmember:
None
PRELUDE MUSIC
The prelude music was provided by Amanda Madrid.
INVOCATION
The invocation was given by Bishop Frazier of Rock of Faith.
ALLEGIANCE
The flag ceremony was presented by Mayor Pro Tem Naggar.
PRESENTATION/PROCLAMATIONS
Arts in the Countrv Proclamation
Ms. Stankovich, Ms. Ferrer, and Mr. Moore were in attendance to accept the proclamation with Ms.
Ferrer and Mr. Moore providing additional information as to the upcoming events.
Relav for Life Proclamation
On behalf of the Relay for Life Committee, Ms. Murray and Ms. Mejia accepted the proclamation
and thanked the City Council for its support and advised that the event will take place on Saturday,
May 31, 2003.
Balloon and Wine Festival Proclamation
Introducing the Board of Directors, Mr. Joe Santos, CEO of the Temecula Valley Balloon and Wine
Festival Association, and Ms. Popejoy-Hime, General Manager of the Association, thanked the City
Council for its support and the proclamation: highlighted the upcoming events of June 6-8, 2003;
and advised that active military personnel will receive a 50% discount on Sunday.
PUBLIC COMMENTS
A. Commenting on the upcoming Memorial Day Holiday, Mr. Wayne Hall, 42131 Agena Road,
representing the Veterans of Foreign Wars, informed and invited the public to attend the yearly
honoring ceremony at the cemetery off Santiago Road on May 26, 2003, at 11 :00 A.M.
B. Ms. Lorena Spencer, 43104 Agenda Road, reiterated her concern as to the lack of public
visibility for her business on Fifth Street in Old Town.
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CITY COUNCIL REPORTS
A. Having met with American Red Cross representatives, Councilman Roberts advised that
because of decreasing contributions, the City's local Red Cross office would be closed, as of
June, unless financial assistance will be provided and, therefore, requested that the item be
considered at the upcoming Budget Workshop.
Mr. Roberts noted that the Southern California Association of Governments and the San
Diego Association of Governments (both regional transportation planning agencies) have met
to discuss regional transportation issues; that another meeting has been set for six months; and
that he will keep the Council apprised.
B. Councilman Pratt supported Councilman Roberts' concern with regard to regard Red
Cross.
Advising that the second Community Open Forum had met at Rancho Vista Sports Park,
Mr. Pratt noted that topics of discussion included building coordination and annexation.
C. Advising of a letter sent to the Attorney General by Mayor Stone and himself with regard
to broadening internet accessibility as it relates to Megan's Law, Mayor Pro Tem Naggar noted
that no changes have been proposed in current law; advised that another letter would be sent to
reiterate the City's desire to change current law to ensure a broader scope of internet
accessibility; and noted that Senator Hollingsworth will be sponsoring legislation to support the
City's goal.
D. Echoing Councilman Roberts' concern with regard to the Red Cross, Councilman
Comerchero relayed his support. Mr. Comerchero advised that in September 2003, Riverside
Transit Authority will be addressing the City's internal bus route and noted that Councilman
Roberts and he will be in Sacramento this week with regard to the State Budget.
E. Advising that Supervisor Buster was in attendance for the Redhawk Annexation, Mayor
Stone welcomed Supervisor Buster to the City Council meeting; informed the public that
because of District realignment, Supervisor Buster, as of January 1, 2004, will no longer be
representing the City; and commended Supervisor Buster for his efforts and support associated
with this annexation.
CONSENT CALENDAR
1 Standard Ordinance and Resolution Adootion Procedure
RECOMMENDATION:
1.1 Motion to waive the reading of the text of all ordinances and resolutions included in
the agenda.
2 Aooroval of Minutes recommendation:
RECOMMENDATION:
2.1 Approve the minutes of April 8, 2003.
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3 Resolution Aoorovinq List of Demands
RECOMMENDATION:
3.1 Adopt a resolution entitled:
RESOLUTION NO. 03- 39
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS
AS SET FORTH IN EXHIBIT A
4 Citv Treasurer's Reoort
RECOMMENDATION:
4.1 Receive and file the City Treasurer's Report as of March 31, 2003.
5 Aooroval of the Pacific Profiles Aareement
RECOMMENDATION:
5.1 Approve the agreement for consultant services with Pacific Profiles to conduct
Dynamics in Leadership Training Academies for the mid-management staff.
(This item was pulled for separate discussion; see page 11.)
6 Meadows Villaqe Develooment Plan (PA02-0273) - Conditional Use Permit (PA02-02741
RECOMMENDATION:
6.1 Adopt a resolution entitled:
RESOLUTION NO. 03-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA DENYING PLANNING APPLICATION NO. PA02-
0273, A DEVELOPMENT PLAN FOR THE DESIGN,
CONSTRUCTION, AND OPERATION OF A 48,372 SQUARE
FOOT GROCERY STORE, A 13,217 SQUARE FOOT DRUG
STORE, A 11,571 SQUARE FOOT RETAIL BUILDING, A 10,568
SQUARE FOOT SHOP BUILDING, AND A 9,603 SQUARE
FOOT RETAIL BUILDING, GENERALLY LOCATED SOUTH OF
RANCHO CALIFORNIA ROAD AND EAST OF MEADOWS
PARKWAY AND KNOWN AS ASSESSORS PARCEL NO. 954-
030-001
6.2 Adopt a resolution entitled:
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RESOLUTION NO. 03-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA DENYING PLANNING APPLICATION NO. PA02-
0274, A CONDITIONAL USE PERMIT TO OPERATE A DRIVE
THROUGH AT A 13,217 SQUARE FOOT DRUG STORE, AND
TO PERMIT THE SALE OF ALCOHOL AT A 48,427 SQUARE
FOOT GROCERY STORE AND AT A 13,217 SQUARE FOOT
DRUG STORE, GENERALLY LOCATED SOUTH OF RANCHO
CALIFORNIA ROAD AND EAST OF MEADOWS PARKWAY
AND KNOWN AS ASSESSORS PARCEL NO. 954-030-001
7 Communitv Grant Aareement with the Temecula Sister Citv Association
RECOMMENDATION;
7.1 Approve a grant in the amount of $10,000.00 for the Temecula Sister City
Association for fiscal year 2002-2003.
8 Purchase and Sale Aareement for the Rorioauqh Ranch Ooen Soace
RECOMMENDATION:
8.1 Adopt a resolution entitled:
RESOLUTION NO. 03-42
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING THAT CERTAIN AGREEMENT
ENTITLED PURCHASE AND SALE AGREEMENT AND
ESCROW INSTRUCTIONS AND AUTHORIZE THE CITY
MANAGER TO RECORD A DEED RESTRICTION AS
REQUIRED BY ASSESSMENT DISTRICT (AD) 161 MULTIPLE
SPECIES SUB-AREA HABITAT CONSERVATION PLAN FOR
CERTAIN REAL PROPERTY DESCRIBED AS THE 201-ACRE
RORIPAUGH RANCH OPEN SPACE PROPERTY IN THE CITY
OF TEMECULA
(This item was pulled for separate discussion; see page 11.)
g Award of contract to uodate the Citywide Desian Guidelines
RECOMMENDATION:
9.1 Award a contract to RRM Design Group in the amount of $70,245.00 to update the
Design Guidelines.
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10 Tract Mao No. 29353-1 (located south of Murrieta Hot SorinQs Road and west of the
Metrooolitan Water District Fee Riaht of Wav within the Plateau Area of the Rorioauah
Ranch Soecific Plan
RECOMMENDATION:
10.1 Approve Tract Map No. 29353-1 in conformance with the conditions of approval;
10.2 Approve the Subdivision Improvement Agreement;
10.3 Approve the Subdivision Monument Agreement and accept the Faithful
Performance Bond, Labor and Material Bond, and Monument Bond as security for
the agreements.
11 Acceotance of an Easement for Public Utilitv and Drainaae Purposes toaether with the riaht
of inaress and earess for Emeraencv vehicles within Tract Mao No. 23371-1 (located
north of Rancho California Road. east of Maraarita Road. west of Meadows Parkwav.
south of La Serena Way. and within the Maraarita Villaae Soecific Plan No. 199 Temeku
Hills Subdivision
RECOMMENDATION:
11.1 Adopt a resolution entitled:
RESOLUTION NO. 03-43
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING AN EASEMENT FOR PUBLIC
UTILITY AND DRAINAGE PURPOSES TOGETHER WITH THE
RIGHT OF INGRESS AND EGRESS FOR EMERGENCY
VEHICLES LOCATED WITHIN TRACT MAP NO. 23371-1
12 Acceotance of an Easement for Public Utilitv and Drainaae Purposes toaether with the riaht
of inQress and earess for EmerQencv vehicles and other easements for Public Utilitv and
Drainaae Purooses within Tract Mao No. 23371-2 (located north of Rancho California
Road, east of Maraarita Road, west of Meadows Parkway, south of La Serena Wav. and
within the Maraarita Villaae Soecific Plan No. 199 Temeku Hills Subdivision
RECOMMENDATION:
12.1 Adopt a resolution entitled:
RESOLUTION NO. 03-44
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING AN EASEMENT FOR PUBLIC
UTILITY AND DRAINAGE PURPOSES TOGETHER WITH THE
RIGHT OF INGRESS AND EGRESS FOR EMERGENCY
VEHICLES AND OTHER EASEMENTS FOR PUBLIC UTILITY
AND DRAINAGE PURPOSES LOCATED WITHIN TRACT MAP
NO. 23371-2
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13 Acceotance of an Easement for Public Utilitv and Drainaae Purooses toaether with the riaht
of inaress and earess for Emeraencv vehicles and other Easement for Public Utilitv and
Drainaae Purooses within Tract Mao No. 23371-5 (located north of Rancho California
Road. east of Maraarita Road. west of Meadows Parkwav. south of La Serena Way, and
within the Maraarita Villaae Soecific Plan No. 199 Temeku Hills Subdivision
RECOMMENDATION:
13.1 Adopt a resolution entitled:
RESOLUTION NO. 03-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING AN EASEMENT FOR PUBLIC
UTILITY AND DRAINAGE PURPOSES TOGETHER WITH THE
RIGHT OF INGRESS AND EGRESS FOR EMERGENCY
VEHICLES AND OTHER EASEMENTS FOR PUBLIC UTILITY
AND DRAINAGE PURPOSES LOCATED WITHIN TRACT MAP
NO. 23371-5
14 Subdivision Imorovement Aareement and Bonds for Tract Mao No. 29639 Harveston Offsite
Improvements - Winchester Road Wideninq at 1-15 Southbound Off-ramo affectina
Jefferson Avenue
RECOMMENDATION:
14.1 Accept the Subdivision Improvement Agreement for the offsite improvements
required of the Harveston Project developer - Lennar Communities;
14.2 Accept the Subdivision Faithful Performance and Labor and Materials Bond as
security for the improvements and as a source for claims against labor and
materials, respectively;
14.3 Direct the City Clerk to so advise the developer and surety.
15 Acceotance of certain Public Streets into the Citv-Maintained Street System within Parcel
Mao No. 26488 (located north of La Serena Wav, east of Calle Medusa. south of Nicolas
Road. and west of Butterfield Staqe Road)
RECOMMENDATION:
15.1 Adopt a resolution entitled:
RESOLUTION NO. 03-46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO
THE CITY-MAINTAINED STREET SYSTEM (WITHIN PARCEL
NO. 26488)
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16 Acceotance of certain Public Streets into the Citv-Maintained Street Svstem within Tract
Mao No. 21821 (located north of Via Norte. east of Winchester Road. south of Nicolas
Road. and west of Butterfield Staae Road within the Meadowview Area)
RECOMMENDATION:
16.1 Adopt a resolution entitled:
RESOLUTION NO. 03-47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO
THE CITY-MAINTAINED STREET SYSTEM (WITHIN TRACT
NO. 21821)
17 Acceotance of certain Public Streets into the Citv-Maintained Street Svstem within Tract
Mao No. 23143-2 (located north of De Portola Road, east of Butterfield Staae Road. south
of Pauba Road. and west of Citv limits)
RECOMMENDATION:
17.1 Adopt a resolution entitled:
RESOLUTION NO. 03-48
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO
THE CITY-MAINTAINED STREET SYSTEM (WITHIN TRACT
NO. 23143-2)
18 Acceotance of certain Public Streets into the City-Maintained Street Svstem within Tract
Mao No. 23143-4 (located north of De Portola Road. east of Butterfield Staae Road. south
of Pauba Road. and west of Citv limits)
RECOMMENDATION:
18.1 Adopt a resolution entitled:
RESOLUTION NO. 03-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO
THE CITY-MAINTAINED STREET SYSTEM (WITHIN PARCEL
NO. 23143-4)
19 Acceotance of certain Public Streets into the City-Maintained Street System within Tract
Map No. 24182-2 (located north of Hiqhwav 79 North. east of Meadows Parkwav, south of
De Portola Road. and west of Butterfield Staqe Road)
RECOMMENDATION:
19.1 Adopt a resolution entitled:
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RESOLUTION NO. 03-50
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO
THE CITY-MAINTAINED STREET SYSTEM (WITHIN TRACT
MAP NO. 24182-2)
20 Acceotance of certain Public Streets into the Citv-Maintained Street Svstem within Tract
Mao No. 28503 (located north of La Serena Wav. east of Maraarita Road. south of Nicolas
Road. and west of Butterfield Staqe Road)
RECOMMENDATION:
20.1 Adopt a resolution entitled:
RESOLUTION NO. 03-51
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO
THE CITY-MAINTAINED STREET SYSTEM (WITHIN TRACT
MAP NO. 28503)
21 Acceotance of certain Public Streets into the Citv-Maintained Street Svstem within Tract
Mao No. 28850 (located north of Rancho California Road. east of Ynez Road. south of
Maraarita Road, and west of Meadows Parkwav)
RECOMMENDATION:
21.1 Adopt a resolution entitled:
RESOLUTION NO. 03-52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO
THE CITY-MAINTAINED STREET SYSTEM (WITHIN TRACT
MAP NO 28850)
22 Amendment NO.1 of the Annual Aqreement for Professional Real Estate Appraisal Services
with Mason & Mason Real Estate Aooraisers
RECOMMENDATION:
22.1 Approve Amendment No. 1 to the Annual Agreement for Professional Real Estate
Appraisal Services between the City and Mason & Mason Real Estate Appraisers,
dated July 23,2002, by increasing the cumulative annual amount by $15,450.
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23 Award of Construction Contract for the Slurrv Seal Proiect - FY2002/2003 - Proiect No.
PW03-02
RECOMMENDATION:
23.1 Award a construction contract for the Slurry Seal Project - FY2002/2003 to
Sudhakar Company International, Inc. in the amount of $276,108.55 and authorize
the Mayor to execute the contract;
23.2 Authorize the City Manager to approve change orders not to exceed the
contingency amount of $27,610.86 which is equal to 10% of the contract amount.
24 Award of Construction Contract for the Citywide Concrete Reoairs - FY2002/2003 - Proiect
No. PW03-03
RECOMMENDATION:
24.1 Award a construction for the Citywide Concrete Repairs - FY2002/2003, Project
No. PW03-03 to Malton Construction in the amount of $58,327.50 and authorize the
Mayor to execute the contract;
24.2 Authorize the City Manager to approve change orders not to exceed the
contingency amount of 5,837.50 which is equal to 10% of the contract amount.
25 Professional Services Aqreement for Geotechnical and Material Testina Services and
Soecial Insoection - Kleinfelder, Inc. - Rancho California Road Bridqe Wideninq over
Murrieta Creek - Proiect No. PW99-18
RECOMMENDATION:
25.1 Approve an agreement with Kleinfelder, Inc. in an amount not to exceed $80,328.00
to provide as needed geotechnical, material testing services, and special inspection
for the Rancho California Road Bridge Widening over Murrieta Creek Improvements
- Project No. PW99-18 - and authorize the Mayor to execute the agreement;
25.2 Authorize the City Manager to approve amendments to the agreement not to exceed
the contingency amount of $8,032.80 which is equal to 10% of the agreement
amount.
(This item was pulled for separate discussion; see page 12.)
26 Professional Services Aareement with TY Lin International for Construction Suooort for the
Rancho California Road Bridae Widenina over Murrieta Creek - Proiect No. PW99-18
RECOMMENDATION:
26.1 Approve a Professional Services Agreement with TY Lin International in an amount
not to exceed $40,385.00 for construction support for the Rancho California Road
Bridge Widening over Murrieta Creek - Project No. PW99-18 - and authorize the
Mayor to execute the contract;
26.2 Authorize the City Manager to approve change orders not to exceed the
contingency amount of $4,038.50 which is equal to 10% of the agreement amount.
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(This item was pulled for separate discussion; see page 12.)
27 Solicitation of Construction Bids for Pechanaa Parkwav - Phase IIA - Storm Drain
Imorovements - Proiect No. PW99-11SD
RECOMMENDATION:
27.1 Approve the project plans and specifications and authorize the Department of Public
Works to solicit bids for the construction of the Pechanga Parkway - Phase IIA -
Storm Drain Improvements - Project No. PW99-11 SD.
28 Aporoval of Plans and Soecifications and Authorization to solicit Construction Bids for the
Pavement Rehabilitation ProQram 2002-2003 Rancho California Road - Proiect No.
PW02-13
RECOMMENDATION:
28.1 Approve the Construction Plans and Specifications and authorize the Department of
Public Works to solicit construction bids for the Pavement Rehabilitation Program
2002-03 Rancho California Road - Project No. PW02-13.
(This item was pulled for separate discussion; see pages 12-13.)
29 Rancho California Road Widenina and Median Modifications East of Ynez Road - Proiect
No. PWOO-20 - Environmental Assessment and authorization to solicit bids
RECOMMENDATION:
29.1 Adopt a resolution entitled:
RESOLUTION NO. 03-53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING A NEGATIVE DECLARATION FOR
THE RANCHO CALIFORNIA ROAD WIDENING AND MEDIAN
MODIFICATIONS EAST OF YNEZ ROAD PROJECT PWOO-20
29.2 Approve the Project Plans and Specifications and authorize the Department of
Public Works to solicit bids for the Rancho California Road Widening and Median
Modifications east of Ynez Road - Project No. PWOO-20
29.3 Approve the Project Plans and Specifications and authorize the Department of
Public Works to solicit bids for the Rancho California Road Widening and Median
Modifications East of Ynez Road, Project No. PWOO-20.
MOTION: Councilman Comerchero moved to approve Consent Calendar Item Nos. 1-4, 6-7,
9-24, 27, and 29 (Item Nos. 5, 8, 25, 26, and 28 were pulled for separate discussion). The
motion was seconded by Mayor Pro Tem Naggar and voice vote reflected unanimous approval.
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CONSENT CALENDAR ITEMS CONSIDERED UNDER SEPARATE DISCUSSION
5 Aooroval of the Pacific Profiles Aareement
RECOMMENDATION:
5.1 Approve the agreement for consultant services with Pacific Profiles to conduct
Dynamics in Leadership Training Academies for the mid-management staff.
Assistant to the City Manager Yates provided an overview of the staff report (of record), further
clarifying the specifics of the cost.
MOTION: Councilman Comerchero moved to approve Consent Calendar Item NO.5. The
motion was seconded by Mayor Pro Tem Naggar and voice vote unanimous reflected approval.
8 Purchase and Sale Aareement for the Rorioauah Ranch Ooen Soace
RECOMMENDATION:
8.1 Adopt a resolution entitled:
RESOLUTION NO. 03-42
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING THAT CERTAIN AGREEMENT
ENTITLED PURCHASE AND SALE AGREEMENT AND
ESCROW INSTRUCTIONS AND AUTHORIZE THE CITY
MANAGER TO RECORD A DEED RESTRICTION AS
REQUIRED BY ASSESSMENT DISTRICT (AD) 161 MULTIPLE
SPECIES SUB-AREA HABITAT CONSERVATION PLAN FOR
CERTAIN REAL PROPERTY DESCRIBED AS THE 201-ACRE
RORIPAUGH RANCH OPEN SPACE PROPERTY IN THE CITY
OF TEMECULA
Speaking in support of this item, Mayor Pro Tem Naggar advised that he had pulled this item in
order to apprise the community that as a result of City efforts with the developer and the Fish
and Wildlife Agency, the Fish and Wildlife Agency has approved the City to take ownership of
201 acres of open space in the Roripaugh Ranch area.
City Attorney Thorson noted that Exhibit C-3 must be amended to reflect that the developer will
pay $439,298.00 to the Center for Natural Lands Management for maintaining the area prior to
recordation of the Deed.
MOTION: Mayor Pro Tem Naggar moved to approve Consent Calendar Item No.8, as
amended. The motion was seconded by Councilman Comerchero and voice vote unanimous
reflected approval.
Consent Calendar Item Nos. 25 and 26 were considered together.
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25 Professional Services Aareement for Geotechnical and Material Testina Services and
Soecial Insoection - Kleinfelder, Inc. - Rancho California Road Bridae Widenina over
Murrieta Creek - Proiect No. PW99-18
RECOMMENDATION:
25.1 Approve an agreement with Kleinfelder, Inc. in an amount not to exceed
$80,328.00 to provide as needed geotechnical, material testing services, and
special inspection for the Rancho California Road Bridge Widening over Murrieta
Creek Improvements - Project No. PW99-18 - and authorize the Mayor to
execute the agreement;
25.2 Authorize the City Manager to approve amendments to the agreement not to
exceed the contingency amount of $8,032.80 which is equal to 10% of the
agreement amount.
26 Professional Services Aareement with TY Lin International for Construction Suooort for
the Rancho California Road Bridae Widenina over Murrieta Creek - Proiect No. PWgg-
j]
RECOMMENDATION:
26.1 Approve a Professional Services Agreement with TY Lin International in an
amount not to exceed $40,385.00 for construction support for the Rancho
California Road Bridge Widening over Murrieta Creek - Project No. PW99-18-
and authorize the Mayor to execute the contract;
26.2 Authorize the City Manager to approve change orders not to exceed the
contingency amount of $4,038.50 which is equal to 10% of the agreement
amount.
Being of the opinion that all new construction of roads and bridges should be stopped until
citizens are satisfied that every avenue of traffic mitigation to protect the citizens has been
thoroughly researched and effective measures are in place, Councilman Pratt relayed his
opposition to these items.
Councilman Comerchero relayed his support of the proposed improvements.
MOTION: Councilman Roberts moved to approve Consent Calendar Item Nos. 25 and 26. The
motion was seconded by Councilman Comerchero and voice vote approval with the exception
of Councilman Pratt who voted no.
28 Aooroval of Plans and Soecifications and Authorization to solicit Construction Bids for
the Pavement Rehabilitation Proaram 2002-2003 Rancho California Road - Proiect No.
PW02-13
RECOMMENDATION:
28.1 Approve the Construction Plans and Specifications and authorize the Department
of Public Works to solicit construction bids for the Pavement Rehabilitation
Program 2002-03 Rancho California Road - Project No. PW02-13.
Public Works Director Hughes reviewed the staff report (of record).
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MOTION: Councilman Comerchero moved to approve Consent Calendar Item No. 28. The
motion was seconded by Mayor Pro Tem Naggar and voice vote unanimous reflected approval.
At 7:53 M., the City Council convened as the Temecula Community Services District, the
Temecula Redevelopment Agency, and the Temecula Public Financing Authority, the City
Council meeting, after a short recess, resumed with regular business at 8:13 P.M.
The following Council Business item was considered out of order.
COUNCIL BUSINESS
33 Redhawk Annexation Agreement
RECOMMENDATION:
33.1 Approve in substantial form the Redhawk Annexation Agreement No. 1 between
the County of Riverside and the City of Temecula.
Reviewing the staff report (as per agenda material), City Manager Nelson noted the following:
. That the City would agree to initiate the annexation process for Redhawk with a target
date of July 1, 2005;
. That the County would agree to pay the City $2.8 million prior to this effective date --
$2.1 million for median and road improvements along SR 79 and $700,000 for parks,
street lighting, and slope maintenance;
. That this payment would more than offset what it would cost the City to provide those
services;
. That once the developer is fully reimbursed for the commercial conversion of the historic
buildings, in an amount not to exceed $3.0 million, the City would then receive 100% of
the sales tax revenues.
In closing, City Manager Nelson thanked Supervisor Buster and Assistant Stahovich for their
assistance and efforts associated with the development of this proposal.
Complimenting the City Council and the City on its flexibility and its farsightedness, Supervisor
Buster expressed his support to this logical annexation.
Mayor Stone expressed appreciation to Supervisor Buster for his years of service.
For Mayor Stone, City Manager Nelson advised that a March of 2004 Election would be
anticipated for the proposed annexation.
Thanking the City Council and City staff for their efforts associated with the proposed
annexation, Mr. Paul Runkle, 32070 Corte Bonilio, provided a brief overview of efforts
undertaken within the Redhawk community to ensure support of the annexation and noted that if
it were possible, an annexation in the year 2004 versus 2005 would be greatly appreciated.
The following individuals spoke in support of the proposed annexation:
. Mr. Ken Bodenhoefer
. Ms. Sara Balder
. Ms. Barbara Wilder
. Mr. Mark Jones
45834 Corte Carmello
33325 Barrington Road
28560 Via Santa Rosa
29379 Rancho California Road, No. 206
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Owner of Avalon Management Company
The above-mentioned individuals spoke in support of the annexation for the following reasons:
. That the annexation is vital to the health and safety of the children
. That the Redhawk community is currently a good neighbor, commenting on its support
and contributions to Rainbow Valley Interchange Project
. That Redhawk is a financially stable community and a well-maintained community.
Commending those directly involved in the process to attain a successful annexation,
Councilman Comerchero welcomed the Redhawk Community to the City of Temecula.
Relaying his support of the proposed annexation, Councilman Roberts thanked Supervisor
Buster and Assistant Stahovich for their association with the annexation and noted that
Supervisor Buster's City representation will be missed.
Commending the Redhawk Community on its contributions to the Rainbow Valley Interchange
Project, Mayor Pro Tem Naggar noted that the Avalon Management Company has well
managed this community; thanked Supervisor Buster and Assistant Stahovich for their City
representation: and concluded that the annexation of Redhawk further accentuate an already
premier City and welcomed those residents to the City.
Councilman Pratt echoed his fellow Councilmembers' comments.
Appreciating the efforts of Supervisor Buster and Stahovich as it relates to this annexation,
Mayor Stone expressed his support of the annexation and advised that the Annexation
Subcommittee (comprised of Mayor Stone and Mayor Pro Tem Naggar) and City staff are of the
opinion that the residents should become beneficiaries, contingent upon a successful March
2004 Election, of certain City services as early as July 1, 2004, noting the following:
. Provide the highest level of public safety through the Faster Ambulance Service in
Temecula (FAST) Program
. Waive non-resident fees for any park and recreation facilities
. Designate a park in Redhawk, at no cost, to provide the Summer Months Activities and
Recreation in Temecula (S.MAR.T.) Program.
Commending Mr. Runkle on his efforts associated with this process, Mayor Stone congratulated
the Redhawk residents on finally being able to derive City benefits from its contributions.
Councilman Comerchero relayed his support of the Subcommittee's recommendation to provide
certain City services, contingent upon a successful election, prior to the July 1, 2005,
annexation date.
MOTION: Councilman Comerchero moved to approve the staff recommendation with the
addition of providing certain City services (as noted above), contingent upon a successful March
2004 Election, as early as July 1, 2004. The motion was seconded by Councilman Roberts and
voice vote reflected unanimous approval.
At this time, the City Council returned to the regular agenda order.
R:\Minutes1051303
14
PUBLIC HEARING
30 Plannina Aoolication No. 02-0567 - Edae Niahtclub Aooeal
(continued from March 25 and April 22, 2003)
RECOMMENDATION:
30.1 Continue to the May 27, 2003 City Council meeting.
Deputy City Manager Thornhill noted that a continuance is being requested.
MOTION: Mayor Pro Tem Naggar moved to continue the public hearing to May 27,2003. The
motion was seconded by Councilman Pratt and voice vote reflected unanimous approval.
31 Develooment Code Amendment (Plannina Aoolication No. 03-0109
RECOMMENDATION:
31.1 Introduce and read by title only an ordinance entitled:
ORDINANCE NO. 03-04
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMECULA AMENDING CHAPTER 17 OF THE TEMECULA
MUNICIPAL CODE TO CLARIFY THE PROCEDURES FOR
MODIFYING APPROVED PERMITS, TO CREATE PROVISIONS
TO ALLOW FOR PLANNED RESIDENTIAL DEVELOPMENTS,
TO MAKE OTHER MINOR CHANGES, AND PROVIDE FOR THE
READOPTION OF PLANNED DEVELOPMENT OVERLAY NOS.
5 AND 6 (PLANNING APPLICATION 03-0109)
Principal Planner Hogan presented the staff report (of record), reiterating that the protection of
open space areas, in perpetuity, both during and after construction, will be required.
To address Mayor Pro Tem Naggar's concern with regard to Planned Residential Developments
(PRDs), Principal Planner Hogan noted the following:
. That because of site constraints, the proposal would allow reasonable development on
property and at the same time, would require the retention of open space area
. That the total site density, as per the General Plan, would not change; that it would only
create flexibility as to the location of the density on the site.
Although in general support of PRDs, Mayor Pro Tem Naggar expressed concern with the
proposed change, allowing an individual the ability to build on a lot which originally would not
permitted intense development because of site constraints and that as a result of the proposed
change, the density would be solely concentrated on a smaller buildable portion of the lot. He,
therefore, requested that criteria/design guidelines be established for PRDs.
At this time, the public hearing was opened.
Councilman Roberts echoed Mayor Pro Tem Naggar's commenUconcern.
R:IMinutes1051303
15
City Attorney Thorson introduced the ordinance and read it by title only.
MOTION: Mayor Pro Tem Naggar moved to adopt the ordinance with the deletion of Sections 6
and 7 which reference Planned Residential Developments. The motion was seconded by
Councilman Comerchero and voice vote reflected unanimous approval.
32 Issuance of Bonds bv the California Statewide Communities Develooment Authoritv for the
Temecula Heritaqe Park Senior Livina Senior Housina Proiect
RECOMMENDATION:
32.1 Adopt a resolution entitled:
RESOLUTION NO. 03-54
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING THE ISSUANCE OF MULTIFAMILY
HOUSING REVENUE BONDS BY THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
Redevelopment and Housing Director Meyer reviewed the staff report (as per agenda material),
Mr. John Bigley, representing Heritage Community Housing, 1740 East Garry Avenue, Santa
Ana, confirmed that by the City Council approving the requested action, the Council would not
be approving the project nor committing to any financial responsibility; that the approval would
merely provide the applicant the ability to put together a full project package for City Council
review/consideration at a later date.
Not clear as to the City's financial expectations, Councilman Comerchero relayed his preference
for a continuance.
MOTION; Councilman Comerchero moved to continue this item for 30 days. This motion died
for the lack of a second.
For Mayor Pro Tem Naggar, Redevelopment and Housing Director Meyer advised that the
applicant has submitted a package to the City but that it is not part of a formal Agency
application; that the Agency has received no direction to support the proposed project; that
based on recently adopted State law, the Agency is limited to the number of senior housing
projects it may support based on proportionality to the number of seniors living in the
community; that an analysis was completed; that with the senior housing project on Pujol Street,
the Agency, in staff's opinion, has exceeded its limit and, therefore, has not entertained
partnering with this project.
City Attorney Thorson, for Mayor Pro Tem Naggar, advised that under Federal Law, the
applicant is required to have a public hearing before the City Council and that the bonds would
be issued by the California Statewide Communities Development Authority, not the City or
Agency.
Considering the status of the State Budget, Councilman Roberts noted that current Agency
monies along with other funds may not be available in the future.
R:IMinutes1051303
16
For Mayor Stone, City Attorney Thorson further commented on Section NO.2 of the proposed
resolution which clarifies the recommended action and noted that City Council approval of the
recommended action would not, in any way, bind the City.
Reiterating that the City Council's approval of the requested action would not financially commit
the City nor would it approve the project, Mr. Bigley noted that the approval would permit the
needed time to create a project package; that the application may be withdrawn at a later date
without penalty; that this TEFRA hearing must be held within 30 days of the application date
(May 16, 2003); and that a continuance would void the project and eliminate the applicant the
ability to present this project to this City Council.
MOTION: Councilman Roberts moved to continue this item for 30 days. The motion was
seconded by Councilman Comerchero. (This motion ultimately failed by a roll call vote; see
below.)
Viewing this request as the applicant's ability to lay the ground work for this project and to
submit, at a future date, an application with the City, Mayor Stone commented on the need for
senior housing in the proposed area and, therefore, relayed his support of the recommendation.
Considering the budget constraints for senior housing and considering the approval of the
request would not bind the City, Councilman Pratt relayed his support of the recommendation in
order for the applicant to have the ability to proceed.
Councilman Roberts reiterated his preference for a continuance.
Although not having reviewed the proposed project, Mayor Pro Tem Naggar noted that because
the City will not be committed to this project, he would willing to support the requested
recommendation.
At this time, a roll call vote of the previously made motion (see above) reflected denial of the
motion.
MOTION: Councilman Pratt moved to approve the staff recommendation. The motion was
seconded by Mayor Stone and roll call vote reflected approval of the motion, as follows:
AYES:
Naggar, Pratt, Stone
NOES:
Comerchero, Roberts
ABSENT:
None
COUNCIL BUSINESS
33 Redhawk Annexation Aareement
RECOMMENDATION:
33.1 Approve in substantial form the Redhawk Annexation Agreement NO.1 between the
County of Riverside and the City of Temecula.
(Previously discussed; see pages 13-14.)
R:IMinutes1051303
17
34 Citrus Vineyard Policv Area Prooosed Uo Zonina (Callawav)
(at the request of Mayor Stone)
RECOMMENDATION:
34.1 Provide direction to staff for further action.
Speaking on behalf of the Temecula Valley Winegrowers Association, Mr. Roberto Ponte,
40500 Camino Del Vino, advised of the Association's support of maintaining the current density
and thanked Supervisor Buster, other winegrowers, and City Councilmembers on efforts in
preserving the wine country.
In an effort to ensure the long-term survival of the wine country, Mayor Stone suggested that the
Association explore the possibility of annexation into the City of Temecula.
Councilman Pratt advised that the possibility of annexing the wine country into the City had
been discussed at one of his Open Forums.
Mr. Ponte, for Councilman Pratt, relayed his preference to ensure zoning that makes sense for
the area of discussion and noted his opposition to clustering homes and, thereby, eliminating
agriculture.
For Councilman Roberts, Mr. Ponte noted that the Association has a working relationship with
the County; that the County has upheld the zone in its RCIP process; and that there has been
discussion of expanding the zone.
Presenting copies of a letter sent to the Board of Supervisors from the Citizens Alliance for
Reliable Enterprise, Ms. Maryann Edwards, 42913 Calle Londe, expressed the Alliance's desire
to retain the current zone.
Mr. Dennis Frank, 37820 Spring Valley Road, President and CEO of the Economic
Development Corporation of Southwest Riverside County, further commented on the support to
retain the current designated zoning of the wine country and noted that any zone change would
be detrimental to the surrounding areas' natural and economic assets. In closing, Mr. Frank
relayed his appreciation to Supervisor Buster and the City Council for its position to preserve the
current zoning.
Mr. Joseph Santos, CEO of the Temecula Balloon and Wine Festival, 24041 Cambria Lane,
further commented on the desire to retain the current zoning, noting the potential economic
impacts if changes were made.
On behalf of the Chamber of Commerce, Mr. Ron Bradley, 30348 Via Canada, referenced a
letter of support to retain the existing zone for the wine country.
Mayor Stone, echoed by Councilman Comerchero, reiterated the City's willingness to ensure
the preservation and protection of the wine country.
MOTION: Councilman Comerchero moved to direct staff to explore options, within the City's
jurisdiction, to ensure the preservation of the wine country and that if the Temecula Valley
Winegrowers Association were desirous of an annexation, that the matter be explored and
forwarded to the City Council for consideration. The motion was seconded by Councilman
Comerchero and voice vote reflected unanimous approval.
R:IMinutes1051303
18
Mayor Pro Tem Naggar further commented on his support of retaining the existing zone and
commented on the negative impacts on this community and the region if a change were made.
CITY MANAGER'S REPORT
City Manager Nelson commended and thanked Senior Planner Naaseh for his efforts
associated with the Roripaugh Ranch acquisition and as well relayed appreciation to City
Attorney Thorson and Assistant City Attorney Curley for their efforts associated with this project.
CITY ATTORNEY'S REPORT
With regard to Closed Session, City Attorney Thorson noted that with respect to Item No. 2
(right-of-way acquisition with respect to the Winchester Road Corridor from Ynez Road to
Margarita Road), the City Council had set a fair market value and that offers will be made to the
appropriate property owners.
ADJOURNMENT
At 9:50 P.M., the City Council meeting was formally adjourned to an adjourned regular meeting
on Thursday, May 15, 2003, at 5:30 P.M., in the City Council Chambers, 43200 Business Park
Drive, Temecula, California for the purpose of a Budget Workshop. The next regular City
Council meeting will be on May 27,2003, at 7:00 P.M.
Jeffrey E. Stone, Mayor
ATTEST:
Susan W. Jones, CMC
City Clerk
[SEAL]
R:\Minutes1051303
19
ITEM 3
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS
SET FORTH IN EXHIBIT A
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section 1. That the following claims and demands as set forth in Exhibit A, on file in the
Office of the City Clerk, have been audited by the City Manager, and that the same are hereby
allowed in the amount of $2,387,083.87.
Section 2. The City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED AND ADOPTED, this 24th day of June, 2003.
Jeffrey E. Stone, Mayor
ATTEST:
Susan W. Jones, CMC
City Clerk
[SEAL]
R:/Resos2003/Resos 03.
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss
CITY OF TEMECULA )
I, Susan W. Jones, CMC, City Clerk of the City of Temecula, hereby do certify that the
foregoing Resolution No. 03-_ was duly adopted at a regular meeting of the City Council of the
City of Temecula on the 24th day of June, 2003 by the following roll call vote:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
COUNCILMEMBERS:
ABSENT:
ABSTAIN:
COUNCILMEMBERS:
Susan W. Jones, CMC
City Clerk
R:/Resos2003/Resos 03-
2
CITY OF TEMECULA
I LIST OF DEMANDS
06/05/03 TOTAL CHECK RUN: $ 1,340,703.63
06/12/03 TOTAL CHECK RUN: 736,159.42
06/05/03 TOTAL PAYROLL RUN: 310,220.82
TOTAL LIST OF PEMANDS FOR 06/24103 COUNCIL MEETING: $ 2,387,083.87
DISBURSEMENTS BY FUNP:
CHECKS:
001 GENERAL FUNP $ 1,383,082.94
165 RPA.LOWIMOD INCOME HOUSING 13,971.94
190 COMMUNITY SERVICES PISTRICT 174,145.26
192 TCSD SERVICE LEVEL B 40,818.36
193 TCSD SERVICE LEVEL C 27,578.54
194 TCSD SERVICE LEVEL D 530.81
210 CAPITAL IMPROVEMENT PROJ. FUND 206,684.60
280 RDA-REDEVELOPMENT 13,961.74
300 INSURANCE 4,195.98
310 VEHICLES 22,998.95
320 INFORMATION SYSTEMS 144,072.97
330 SUPPORT SERVICES 7,396.43
340 FACILITIES 37,424.53
I $ 2,076,863.05
001 GENERAL FUND $ 217,600.35
165 RDA-LOWIMOD INCOME HOUSING 4,816.88
190 COMMUNITY SERVICES DISTRICT 57,500.22
192 TCSD SERVICE LEVEL B 109.65
193 TCSD SERVICE LEVEL C 5,014.15
194 TCSD SERVICE LEVEL P 755.93
280 RDA-REDEVELOPMENT 2,189.30
300 INSURANCE 991.91
320 INFORMATION SYSTEMS 13,629.29
330 SUPPORT SERVICES 1,597.44
340 FACILITIES 6,015.70 310,220.82
TOTAL BY FUND: $ 2,387,083.87
PREPARED BY RHA WESTON, ACCOUNTING SPECIALIST
. HEREBY CERTIFY THAT THE FOLLOWING IS TRUE AND CORRECT.
IRE,CTOI7F FINANCE
I . ~
SHAWN NELSON, CITY MANAGER
, HEREBY CERTIFY THAT THE FOLLOWING IS TRUE AND CORRECT.
I
apChkLst
06105/2003
10:23:47AM
Bank: union UNION BANK OF CALIFORNIA
Check # Pate
Vendor
128 06105/2003 000642 TEMECULA CITY FLEXIBLE
129 06/05/2003 000389 US C M WEST (OBRA),
Final Check List
CITY OF TEMECULA
Page: 1
Description
Amount Paid
Check Total
Employee contribution to flex
8,216.04
8,216.04
OBRA. Project Retirement Payment
2,291.56
2.291.56
130 06/05/2003 000246 PERS (EMPLOYEES' RETIREME PERS ER Paid Member Contr Pmt
49,247.05
49,247.05
131 06/05/2003 001065 NATIONWIDE RETIREMENT SO Nationwide Retirement Payment
132 06/05/2003 000283 INSTATAX (IRS)
133 06/05/2003 000444 INSTATAX (EDD)
17,700.59
17,700.59
Federal Income Taxes Payment
60,247.75
60,247.75
State Disability Ins Payment
13,832.25
13,832.25
134 06/05/2003 000245 PERS (HEALTH INSUR. PREMIU Blue Shield HMO Payment
84481 06105/2003 005277 2 H CONSTRUCTION INC
84482 06/05/2003 003552 A F LAC
84483 06105/2003 004765 ACTIVE NElWORK INC, THE
84484 06/05/2003 006323 ALL AMERICAN COLLEGE
46,177.91
46,177.91
Apr Prgss: Mercantile Seismic Retrofit
Amended Stop Ntc: Rehmann Const.
30,736.71
-1,580.72
29,155.99
AFLAC Cancer Payment
1,470.70
1,470.70
RecWare computer training: TCSD
2,500.00
2,500.00
Refund: Security Deposit
100.00
100.00
84485 06105/2003 004240 AMERICAN FORENSIC NURSES DUI:Drug/Alcohol Screening svc:P.D.
84486 06105/2003 000936 AMERICAN RED CROSS
84487 06/05/2003 006340 ANDERSON, JEREMY
84488 06105/2003 006309 ANDRESS, DOUGLAS
84489 06105/2003 006346 ANDRESS, JANIEL
84490 06/05/2003 000101 APPLE ONE, INC.
216.00
216.00
Emergency response manual: TCSD
Lifeguard training manuals: TCSD
Lifeguard certificate process fees
Lifeguard certificate process fees
400.00
350.00
50.00
35.00
835.00
Refund: Citation No. 1971
50.00
50.00
Refund:Grading Depst: TR9833-3
995.00
995.00
Refund: Citation No. 1974
50.00
50.00
Temp help PPE 5/17/03 Kissam
531.38
531.38
Page:1
apChkLst
06/05/2003
10:23:47AM
Final Check List
CITY OF TEMECULA
Page: 2
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Date
Vendor
Description
Amount Paid
Check Total
84491 06/05/2003 006372 ARG ENTERPRISES, INC
CFD 88-12 reimbursement
5,646.16
5,646.16
84492 06/05/2003 003203 ARTISTIC EMBROIDERY
Blue tote bags w/Econ Davel Logo
City logo jackets for IS staff
1,437.39
413.76
1,851.15
84493 06/05/2003 006322 AUSTIN, BERTIN
Refund: Security Deposit
100.00
100.00
84494 06/05/2003 006332 AUSTIN, JUDY
Refund: Citation No. 1934
50.00
50.00
84495 06/05/2003 006364 BARNES ANP NOBLE
14 DVD movies for park series event
348.96
348.96
84496 06/05/2003 005739 BARON, OTTO
Refund: Admin Cite 2126
50.00
50.00
84497 06/05/2003 006366 BOYDP, MARCUS Cash Adv: Street Crimes Sem: 6/22-
200.00
200.00
8449B 06/05/2003 006308 BUD BAILEY CONSTRUCTION Refund:Grading Depst: TR2B510-1
495.00
495.00
84499 06/05/2003 000152 CALIF PARKS & RECREATION S Membership: K. Harrington 024449
125.00
125.00
84500 06105/2003 002520 CALIFORNIA T'S
PW mnte shirts & hats w/city logo
821.05
821.05
84501 06105/2003 003554 CANADA LIFE ASSURANCE CO Manadory Life Insurance Payment
2,380.00
2,380.00
84502 06105/2003 004971 CANON FINANCIAL SERVICES, June lease pmt for City Copiers
6,727.20
6,727.20
84503 06105/2003 006315 CHRISTENSEN, SCOTT Refund: Music -Instant Piano
15.00
15.00
84504 06/05/2003 005417 CINTAS FIRST AlP & SAFETY First Aid Supplies: City Hall
First aid Supplies: PW Mnte
60.02
28.07
88.09
84505 06/05/2003 006341 CLARK, MARK Refund: Citation No. 1943
50.00
50.00
84506 06/05/2003 004405 COMMUNITY HEALTH CHARI Community Health Charities Payment
173.50
173.50
84507 06105/2003 000442 COMPUTER ALERT SYSTEMS Sr Center Fire/Security system test
58.00
58.00
84508 06/05/2003 006318 CORNERSTONE ACADEMY Refund: Security Deposit
100.00
100.00
Page:2
apChkLst Final Check List Page: 3
06105/2003 to:23:47AM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
84509 06/05/2003 006312 CORNWALL AND ASSOCIATES Refund:Grading Peps!: TR28510-1 500.00 500.00
84510 06/05/2003 006317 CROWN JANITORIAL SERVICE Refund: Security Deposit 100.00 100.00
84511 06105/2003 006314 DANCES, KARRON Refund: Kids Love Soccer 35.00 35.00
84512 06105/2003 003625 DAVIS, JOHN TCSD instructor earnings 400.00 400.00
84513 06/05/2003 004450 DENNIS A HIBBERT PLUMBING Install new hot water heater: Stn 92 499.00 499.00
84514 06105/2003 006327 PESIERTO, COLLEEN Refund: Security Deposit 510.00 510.00
84515 06/05/2003 005965 DIVERSIFIED PROTECTION Data Center Construction Work 3,310.00 3,310.00
84516 06105/2003 001669 DUNN EDWARDS CORPORATI Supplies for graffiti removal 143.18 143.18
84517 06105/2003 001380 E S I EMPLOYMENT SERVICES Temp help PPE 5/16103 Rush 1,908.00
Temp help PPE 5/16/03 Novotny 1,194.27
Temp help PPE 5/16/03 Seng 1,176.80
Temp help PPE 5/16/03 Montecino 1,109.60
Temp help PPE 5/16/03 Jones 1,109.08
Temp help PPE 5/16/03 Bragg 855.36
Temp help PPE 5/16/03 Cammarota 813.92
Temp help PPE 5/16/03 Pena 792.87 8,959.90
84518 06105/2003 003223 EDAW INC Biological Bve: Lg Cyn Detention Basi 1,222.57 1,222.57
84519 06105/2003 000161 EOEN SYSTEMS INC Inforum 90ld upgrade: Exp Reimb 763.50 763.50
84520 06105/2003 006362 EKLUND. SHERRY Refund: Tennis Camp Kids 120.00 120.00
84521 06105/2003 006321 ELSINORE HIGH SCHOOL Refund: Security Deposit 100.00 100.00
84522 06105/2003 002577 ENGINEERING RESOURCES Hydrology Study - Assmt Dist Impr 2,920.00 2,920.00
84523 06/05/2003 006359 EPSTEIN, MARVIN Refund: Citation No. 0256 50.00 50.00
84524 06105/2003 000478 FAST SIGNS Mounting of Aerial Map for RDA 21.55 21.55
Page3
apChkLst Final Check List Page: 4
06/05/2003 10:23:47AM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
84525 06/05/2003 000166 FIRST AMERICAN TITLE Lot Book Reprt: Zavala 150.00 150.00
84526 06/05/2003 003347 FIRST BANKCARP CENTER xx-9277 R.Roberts: Conf expenses 1,272.07
xx-7824 Comerchero: league Conf 900.11
xx-1405 Ubnoske: Prof mtgs/Misc 566.16
xx-6165 Yates: Mise supplies 486.48
xx-0432 Eimo: Calbo cf:6/16/03 250.00
xx~0515 Thornhill Pictopia SVC5 119.70
xx-9798 Stone: Office Supplies 32.31 3,626.83
84527 06/05/2003 006349 FISHER, ERNA Refund: Citation No. 1968 50.00 50.00
84528 06/05/2003 006343 FOLEY, JANINE Refund: Citation No. 0380 50.00 50.00
84529 06/05/2003 006355 GARCIA, LUCIO Refund: Citation No. 0049 50.00 50.00
84530 06/05/2003 006126 GASKINS, CHRIS Cash Adv:Street Crimes Sem:6/22-25 200.00 200.00
84531 06/05/2003 004034 GEN-CO Red line generator: TCSD 1,235.25 1,235.25
84532 06/05/2003 006324 GERONTOLOGY RESEARCH Refund: Security Deposit 100.00 100.00
84533 06/05/2003 006357 GILETTE JR. ANTHONY Refund: Citation No. 1940 50.00 50.00
84534 06/05/2003 003792 GRAINGER Cabinets for Fire Station 92 368.15 368.15
84535 06/05/2003 003640 GRAYNER ENGINEERING Engineering Svc: Children's Museum 64.94 64.94
84536 06/05/2003 000186 HANKS HARDWARE INC Hardware supplies: TCSD 784.84
Hardware supplies: Fire Dept 504.39
Hardware supplies: PW mnte 336.66
Hardware supplies: PW mnte 313.77
Hardware supplies: West Wing 264.66
Hardware supplies: CRG 160.75
Hardware supplies: City Hall 105.49
Hardware supplies: PW mntc 56.97
Hardware supplies: Recreation 41.08
Hardware supplies: IS 39.S9
Hardware supplies: Sr Genter 7.68
Hardware supplies: Fire Dept -88.76 2,527.42
Page:4
apChkLst Final Check List Page: 5
06/05/2003 10:23:47AM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
84537 06/05/2003 000116 HEALTH NET DENTAL AND VI Health Net Dental and Vision Pmt 1,010.15 1,010.15
84538 06/05/2003 004811 HEWLETT PACKARD Compaq tablet & accessories: Fire 4,945.73 4,945.73
84539 06/05/2003 004755 HIGHER INTEGRITY PAINTING Fae Imp Prgm: Allbright At Last 2,800.00 2,800.00
84540 06/05/2003 002107 HIGHMARK INC Voluntary Supp Life Insurance 574.40 574.40
84541 06105/2003 005748 HODSON, CHERYL A. Support Payment 16.53 16.53
84542 06/05/2003 000194 I C M A RETIREMENT TRUST 45 leMA Retirement Payment 8,238.18 8,238.18
84543 06/05/2003 004833 IMPERIAL PAVING COMPANY I Str repair Vail Ranch/Overland Trail 8,173.00
Asphalt repairs: Sports Park 5.973.00 14,146.00
84544 06/05/2003 001407 INTER VALLEY POOL SUPPLY I Pool sanitizing chemicals 193.72 193.72
84545 06/05/2003 006319 JOHNSON, CAROL Refund: Security Deposit 100.00 100.00
84546 06/05/2003 006333 JOHNSON, POLLY Refund: Citation No. 0362 50.00 50.00
84547 06/05/2003 003046 K FRO G 95.1 FM RADIO Radio broadcast: Western Days 750.00 750.00
84548 06/05/2003 006347 KUHNS, CRYSTAL Refund: Citation No. 0160 50.00 50.00
84549 06/05/2003 006339 LEMUS, CYNTHIA Refund: Citation No. 0240 50.00 50.00
84550 06/05/2003 006344 LOPEZ, Y ADIRA Refund: Citation No. 0045 50.00 50.00
84551 06/05/2003 004776 M P SIGNS Prevention-numbering on Be vehicles 160.00 160.00
84552 06105/2003 003782 MAIN STREET SIGNS new signs/hardware for PW Maint. 482.72 482.72
84553 06/05/2003 004068 MANALlLI, AILEEN TCSD Instructor Earnings 336.00 336.00
84554 06/05/2003 006369 MARKS, ROBERT advance:Street Crimes Sem:6/22-25 200.00 200.00
PageS
apChkLst Final Check List Page: 6
06/05/2003 10:23:47AM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
84555 06105/2003 005806 MATTHEWS, CATHERINE J. Feb-May street addressing 525.00 525.00
84556 06105/2003 001924 MAXIM US INC User Fee Study Update 15,000.00 15,000.00
84557 06105/2003 006352 MC CALLISTER, GIGI Refund: Citation No. 1948 50.00 50.00
84558 06105/2003 003448 MELODYS AP WORKS Jun consult svcs:O.T. Street Festival 2,500.00
Reimb exp:Westem Days/Street Fest 958.37 3,458.37
84559 06105/2003 006329 MESA, NANCY Refund: Adult Learn to Swim 30.00 30.00
84560 06105/2003 003076 MET LIFE INSURANCE MetLifa Payment 7,384.02 7,384.02
84561 06105/2003 001905 MEYERS, DAVID WILLIAM TCSD Instructor Earnings 544.00
TCSD Instructor Earnings 288.00 832.00
84562 06105/2003 004894 MICHAEL BRANDMAN ASSOCIA Apr prof svcs:Pala Rd imprv 152.00 152.00
84563 06/05/2003 004534 MOBILE SATELLITE VENTURES May EGC satellite sin phone svcs 70.84 70.84
84564 06/05/2003 005887 MOFFATT & NICHOL ENGINEER Consult svcs:F.V. Pkwyll-15 overcross 47,397.24 47,397.24
84565 06105/2003 006350 MORALES, ALEXANDER Refund: Citation No. 0302 50.00 50.00
84566 06105/2003 006367 MUELLER, SHELLEY ae computer loan prgm 649.45 649.45
84567 06/05/2003 006320 MUHS NIGHTHAWKS BANP BO Refund:Sec.Deposit 100.00 100.00
84568 06/05/2003 001986 MUZAK INC Jun music broadcasting:Old Town 59.50 59.50
84569 06/05/2003 001007 N P G CORPORATION Slurry SeaVStripe:6th Street Prk Lot 23,535.00 23,535.00
84570 06/05/2003 002925 NAPA AUTO PARTS parts & supplies for PW Maint 37.86
parts & supplies for PW Maint. 12.38 50.24
84571 06/05/2003 006260 NOLL MANUFACTURER COMPA Explorers:pails for Temecula Muster 51.54 51.54
84572 06/05/2003 003570 NORM REEVES 9/11 monumenVCouncil Discretionary 2,500.00 2,500.00
Page:6
apChkLst Final Check List Page: 7
06105/2003 10:23:47AM CITY OF TEMECULA
Bank; union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
84573 06/05/2003 003570 NORM REEVES Code Enforcement vehicle maint SVCS 244.18
sales tax for inv# CHCS258509 6.29 250.47
84574 06105/2003 004191 NORTH COUNTY TIMES-PMT P 6/21-12/21/03subscription:Finance 61.00 61.00
84575 06105/2003 006361 O'HARA, ELAINE Refund: Picnic shelter:5/31103 30.00 30.00
84576 06105/2003 006354 O'LEARY, TIM Refund: Citation No. 0232 50.00 50.00
64577 06/05/2003 006337 O'SHEA, DEBORAH Refund: Citation No. 1914 50.00 50.00
84578 06105/2003 002105 OLD TOWN TIRE & SERVICE City vehicle mainVrepair SVCS 463.49
City vehicle maintlrepair svcs 446.22
City vehicle maintlrepair svcs 375.27
City vehicle mainVrepair svcs 124.12
City vehicle maintlrepair svcs 27.81 1,436.91
84579 06105/2003 002668 OMEGA LAKE SERVICES Jun Duck Pond water maint svcs 800.00 800.00
84580 06/05/2003 001171 ORIENTAL TRADING COMPANY supplies for the 4th of July 131.80 131.80
84581 06105/2003 002256 P & D CONSULTANTS iNC Apr temp bldg inspector svcs:Farley 3,360.00 3,360.00
84582 06105/2003 001248 PAPER DIRECT INC paper supplies for 4th of July 56.93 56.93
84583 06105/2003 000472 PARADISE CHEVROLET CAPI 2003 cutaway truck for TCSD 22,998.95 22,998.95
84584 06/05/2003 002652 PAT & OSCARS RESTAURANT PW budget mtg:03l05/03 549.47 549.47
84585 06/05/2003 006353 PERDOMO. JUAN FUENTES Refund: Citation No. 1950 50.00 50.00
84586 06105/2003 001958 PERS LONG TERM CARE PROG PERS Long Term Care Payment 227.08 227.08
84587 06105/2003 002861 PETSMART food/supplies for P.D. K-9 unit 173.33
food/supplies for P.D. K-9 unit 57.03 230.36
84588 06105/2003 000249 PETTY CASH Petty cash reimbursement 588.08 588.08
84589 06/05/2003 005276 PHOTO MAX SUPPLIES COMPA photo supplies for Tern. P.O. 497.81 497.81
Page:?
apChkLst
06105/2003
10:23:47AM
Final Check List
CITY OF TEMECULA
Page: 8
Bank: union UNION BANK OF CALIFORNIA
(Conlinued)
Check # Pate
Vendor
Description
Amount Paid
Check Total
84590 06105/2003 006368 PIERSON, BRUCE advance:Street Crimes Sem:6/22-25
200.00
200.00
84591 06105/2003 006351 PLANTE, CLAIRE Refund: Citation No. 0317
50.00
50.00
84592 06/05/2003 006313 PONTE, RACHEL Refund:Sci Adv Camp
300.50
300.50
84593 06105/2003 002185 POSTMASTER - TEMECULA Bulk mailing:TCSD Smr/Fall Brochure
4,007.34
4,007.34
84594 06105/2003 005820 PRE-PAID LEGAL SERViCES I Pre-Paid Legal Services Payment
143.55
143.55
84595 06105/2003 002880 PRO-CRAFT SASH & SUPPLY res imprv prgm:Bevell. Irene
1,650.00
1,650.00
84596 06105/2003 003697 PROJECT PESIGN CONSULTAN Apr prof svcs:JeffersonlWinch. survey
Apr prof svcs:R.C. Bridge Widening
Creditreimbursables not per agrmnt
5,325.70
1,515.00
-95.70
6,745.00
S4597 06105/2003 005897 QUINATA, EARL advance:Street Crimes Sem:6/22-25
200.00
200.00
84598 06/05/2003 000635 R & J PARTY PALACE table rentals:Western Pays
119.05
119.05
64599 06/05/2003 002612 RADIO SHACK INC mise computer supplies
32.30
32.30
84600 06105/2003 000262 RANCHO CALIF WATER DIST
Various water meters
May 01-99-02003-0 Floating mtr
May 02-79-10100-1 Piaz Rd
8,387.10
268.62
79.84
8,735.36
84601 06/05/2003 000947 RANCHO REPROGRAPHICS
dup. blueprints:pavement rehab
219.65
219.65
84602 06/05/2003 004584 REGENCY LIGHTING
25 Emergency Exit Fixtures
various parks electrical supplies
various parks electrical supplies
various parks electrical supplies
4,506.37
276.44
253.10
138.22
5,174.13
84603 06/05/2003 003742 REHAB FINANCIAL CORPORATI Reconveyance Fee:Ballard
Apr loan servicing svcs
60.00
40.00
100.00
84604 06/05/2003 003591 RENES COMMERCIAL MANAGE City's R-O-W weed abateltrash pickup
brush/trees removal:R.C. Bridge
5,000.00
750.00
5,750.00
84605 06105/2003 000266 RIGH1WAY
equipment rental - Riverton Park
equipment rental - Pasee Park
equipment rental - Veteran's Park
77.94
60.78
54.39
193.11
Page:8
apChkLst
06/05/2003
10:23:47AM
Final Check List
CITY OF TEMECULA
Page: 9
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Pate
Vendor
Description
Amount Paid
Check Total
84606 06/05/2003 006371 RIO PROPERTIES, INC.
HlI:Accela Cf:J.M.lB.R.1Z2FZH:7/27-81
1,030.05
1,030.05
84607 06105/2003 000955 RIVERSIPE CO SHERIFF SW ST Taste of the World patrol svcs:4/27/03
571.22
571.22
84608 06/05/2003 000406 RIVERSIPE CO SHERIFFS DEP 4/03-4/3O/03:lawenforcement
761,966.41
761,966.41
84609 06105/2003 006335 ROPRIGUEZ, ELEAZAR Refund: Citation No.1 994
50.00
50.00
84610 06105/2003 006181 ROGERS HOME IMPROVEMEN Res Imp Prgm: Guerrero, Elsa
4,000.00
4,000.00
84611 06105/2003 006348 RUIZ, RUPY LEE Refund: Citation No. 0042
50.00
50.00
84612 06/05/2003 002226 RUSSO, MARY ANNE TCSD Instructor Earnings
700.00
700.00
84613 06/05/2003 000277 S & S ARTS & CRAFTS INC Supplies for Summer Pay Camp
362.15
362.15
84614 06105/2003 006338 SAM, JOSEPH Refund: Citation No. 0326
50.00
50.00
84615 06/05/2003 005227 SAN OIEGO COUNTY OF Support Payment
107.00
107.00
84616 06/05/2003 006331 SANDOVAL, CONSUELO Refund: Citation No. 0462
50.00
50.00
84617 06105/2003 006342 SCHAUBERT, ROBERT Refund: Citation No. 0269
50.00
50.00
84618 06105/2003 00635S SCHUBERT, WILLIAM Refund: Citation No. 0312
50.00
50.00
84619 06/05/2003 000403 SHAWN SCOTT POOL & SPA May T.E.S. pool maint svcs
337.00
337.00
84620 06105/2003 000385 SHELDON EXTINGUISHER COM Fire extinguishers maint svcs:CRC
15.00
15.00
84621 06/05/2003 000645 SMART & FINAL INC Supplies for High Hopes prgm
Supplies for High Hopes prgm
Ree class supplies for Tee
Ree supplies for Family Fun Nights
243.18
150.72
13.67
12.98
420.55
84622 06/05/2003 002718 SO CALIF CITY CLERKS ASSN SCCCA general mtg:6119:SJ/CP
60.00
60.00
Page:9
apChkLst Final Check List Page: 10
06/05/2003 10:23:47AM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
S4623 06/05/2003 000537 SO CALIF EPISON Various water meters 10,343.14
Various water meters 456.72
May 2-19-683-3263 Front St Ped 352.20
May 2-11-007-0455 6th Street 288.76
May 2-20-817-9929 P.P. Front St. Stn. 225.24
May 2-18-049-6416 Front Sl Ped 191.70
May 2-21-911-7892 S.Side Prk Lot 116.67 11,974.43
84624 06/05/2003 000519 SOUTH COUNTY PEST Pest Control SlVes: Maint Fac. 68.00
Pest Control Srves: Museum 42.00
Pest Control Srves: Tee 36.00
Pest Control Srves: Wedding Chapel 32.00
Pest Control Srves: Sr Center 29.00 207.00
84625 06/05/2003 006356 SQUIRES, BRIANNA Refund: Citation No. 1945 50.00 50.00
84626 06/05/2003 004420 STATE COMP INSURANCE FUN May 03 Workers' Camp Premium 31,335.04 31,335.04
84627 06/05/2003 006334 STEWART, JOYCE Refund: Citation No. 0461 50.00 50.00
84628 06105/2003 006311 SUNRIPGE COMMUNITY Refund:Grading Deposit:42299 Winch. 995.00 995.00
84629 06/05/2003 003449 THE SOILS COMPANY INC Ph1 assessment report:Musicians Wrk 1,650.00 1.650.00
84630 06105/2003 000305 T ARG ET STORE Digital Camera for TCSD 426.24
Ree supplies for Skate Park 51.81
Rec supplies for TCSD 29.63
Supplies for Family Fun Nights 27.96
aquatic supplies for TCSD 24.44
sales tax for invoice # 1103451731 4.02 564.10
84631 06/05/2003 001547 TEAMSTERS LOCAL 911 Union Dues Payment 3,286.00 3,286.00
84632 06105/2003 003673 TECH 101 ARCUS INC Two PC Workstations for GIS 4,406.12 4,406.12
84633 06105/2003 001672 TEMECULA DRAIN SERV & PLU Sports Park plumbing svcs 120.00 120.00
84634 06/05/2003 000168 TEMECULA FLOWER CORRAL Sunshine Fund 153.93 153.93
84635 06105/2003 006316 TEMECULA OGGI'S PIZZA & Refund:Overpmt Planning Fees 45.00 45.00
Page:l0
apChkLsl Final Check List Page: 11
06/05/2003 10:23:47AM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
84636 06/05/2003 004541 TEMECULA RADIATOR/AUTO R Fire Prevo vehicle repair/maint svcs 1,985.62
Fire Prevo vehicle repair/maint svcs 946.16 2,931.78
84637 06/05/2003 006325 TEMECULA VALLEY ELKS #28 Refund:Sec.Peposit:5/24/03 100.00 100.00
84638 06105/2003 003067 TEMECULA VALLEY R V, LLC trailer for GEM vehicles: Fire 9,500.00 9,500.00
84639 06105/2003 004274 TEMECULA VALLEY SECURITY City Hall Locksmith Svcs 40.25 40.25
84640 06/05/2003 006310 THOMAS, WILLIAM Refund:Grading Deposlt:40724 La Col 995.00 995.00
84641 06105/2003 005964 TIM SKOPHAMMER GOLF TCSD Instructor Earnings 312.00 312.00
84642 06/05/2003 005937 TOMCZAK, MARIA, T. TCSD Instructor Earnings 12.00 12.00
84643 06/05/2003 003366 TORAN DEVELOP. & CONSTRU Repair Banner Poles in Old Town 548.25 548.25
84644 06/05/2003 005567 TOTL GEAR LLC T-shirts for Skaters Challenge 78.36 78.36
84645 06/05/2003 003031 TRAFFIC CONTROL SERVICE I Traffic Control Supplies for PW Maint. 363.66 363.66
84646 06105/2003 006360 TVS ELITE Refund:Sec. Deposit:4/18/03 100.00 100.00
84647 06105/2003 005592 TWINING LABORATORIES Apr consult svcs:mercantile bldg 2,052.96
Creditexceeds contract amount -91.63 1,961.33
84648 06/05/2003 002702 US POSTAL SERVICE Postage meter deposit 4,135.75 4,135.75
84649 06/05/2003 004981 UNISOURCE SCREENING & ae background screening svcs l,10S.00 1,108.00
84650 06/05/2003 000325 UNITED WAY United Way Charities Payment 318.30 318.30
84651 06/05/2003 004819 UNUM LIFE INS. CO. OF AMERI longterm Disability Payment 6,337.43 6,337.43
84652 06/05/2003 006257 VACUUM EXPRESS Vacuum for Fire Sin 84 1 ,373.82 1,373.82
84653 06/05/2003 006345 VARGAS, MIGUEL Refund: Citation No. 552 50.00 50.00
Page:l1
apChklst
06/05/2003
10:23:47AM
Final Check List
CITY OF TEMECUlA
Page: 12
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Date
Vendor
Description
Amount Paid
Check Total
84654 06/05/2003 004261 VERIZON CALIFORNIA
May xxx-2626 P.D. Storefront Stn
May xxx-9897 general usage
May xxx-3526 fire alarm
May xxx-2676 general usage
224.29
89.31
84.44
29.13
427.17
84655 06105/2003 004789 VERIZON INTERNET SOLUTION May internet svcs:xx0544
May internet svcs:xx7411
69.95
69.95
139.90
84656 06105/2003 004848 VERIZON SELECT SERVICES I May long distance svcs
7.25
7.25
84657 06/05/2003 00632S VERTIN, SHARON Refund:Sec. Deposit
100.00
100.00
84658 06105/2003 006336 VilLANUEVA, PEANNA Refund: Citation No. 0360
50.00
50.00
84659 06105/2003 006370 WAPE, JOHN advance:Street Crimes Sem:6122-25
200.00
200.00
84660 06105/2003 0018S1 WATER SAFETY PROPUCTS I Aquatics uniforms/equipment
1,145.73
1,145.73
84661 06/05/2003 006265 WEBSTER, STEVE Refund:Day Camp
88.00
88.00
84662 06105/2003 004268 WESTERN FIRE COMPANY semi-annual kitchen hood inspct:TCC
semi-annual kitchen hood inspctCRC
semi-annual kitchen hood inspct:Sr Ct
75.78
71.47
71.47
218.72
84663 06/05/2003 006263 WilLIAMS, JOHN Refund:Eng.deposit:31755 R.Vista Rd
995.00
995.00
84864 06/05/2003 005941 WllMOVSKY, DEBBIE TCSD Instructor Earnings
108.00
108.00
84665 06105/2003 005326 WOODSIDE, SCOTT
Refund:Sec.Deposit:5/27/03
100.00
100.00
84666 06/05/2003 006363 WRIGHT, GRETCHEN
Refund:Tennis-lntermediate Jr.
40.83
40.S3
84667 06105/2003 006330 ZADRA. MICHAEL
Refund: Citation No. 0356
50.00
50.00
Sub total lor UNION BANK OF CAlIFORNfA:
1,340.703.63
Page:12
apChkLsl Final Check List Page: 1
06/12/2003 9:S1:41AM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA
Check # Date Vendor Description Amount Paid Check Total
135 06/10/2003 000166 FIRST AMERICAN TITLE 28690 Mercedes 8t closing cost 1,750.00 1.750.00
84668 08/12/2003 005126 A E G SOLUTIONS CIP Division AutoCAD supplies 355.02 355.02
84669 06112/2003 001700 A PLUS TEACHING MATERIALS Tiny Tots Recreation Supplies 176.77 176.77
84670 06/12/2003 006291 ASP I TACTICAL Folding Stock for Police Shotguns 479.83 479.83
84671 06112/2003 000106 ALFAX WHOLESALE FURNITUR 50 folding chairs for TCSP 922.57 922.57
84672 06/12/2003 000936 AMERICAN RED CROSS 1st Pmt of Community Grant Argmnt 9,500.00 9,500.00
84673 06/12/2003 000101 APPLE ONE. INC. Temp help PPE 5/17/03 Delarm 624.00
Temp help PPE 5/17/03 Lee 520.00
Temp help PPE 5/24/03 Lee 520.00
Temp help PPE 5/24/03 Kissam 482.63
Temp help PPE 5/24/03 Delarm 374.40
Temp help PPE 5/17/03 Donnelly 81.25 2,602.28
84674 06/12/2003 004599 AQUARIUM OF THE PACIFIC Tickets to Aquarium of the Pacific 473.90 473.90
84675 06/12/2003 001323 ARROWHEAD WATER INC Bottled wtr servs @ West Wing 330.02
Bottled wtr servs @ CRG 139.34
Bottled wtr servs @ Museum 23.4S 492.84
84676 06/12/2003 003203 ARTISTIC EMBROIDERY Children's Museum staff uniforms 562.46
Records Mgmt Depart. Shirts 219.81 782.27
84677 06/12/2003 006387 ARZAGA, NORMA Refund:Cooking- Vegetarian 30.00 30.00
84678 06/12/2003 002S48 BADGER, THE Fire prevention education items 343.00 343.00
84679 06/12/2003 000622 BANTA ELECTRIC-REFRIGERA Electrical Repairs: Rancho Cal Rd 1,875.00
Install MC unit @ 6th Sf Sound room 806.00
Relocate EXIT sign in West Wing Bid 175.00
Break~room ice maker repair: City Halt 62.00 2,918.00
84680 06112/2003 002541 BECKER CONSTRUCTION SRV Repair to Channels @ Diaz I Ynez 7,405.00
Citywide A.C. Saw Cutting for PW 5,000.00
Repair cracks on Margarita Bridge 465.00
Citywide AC Saw Cutting for PW 320.00 13,190.00
Page;l
apChkLst
06/12/2003
9:51 :41AM
Final Check List
CITY OF TEMECULA
Page: 2
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Pate
Vendor
Description
Amount Paid
Check Total
84681 06112/2003 006390 BEST OF TIMES, THE Honoring Councilman Event:6I17/03
75.00
75.00
84682 06/12/2003 003455 BROADCAST MUSIC INC Final bill for music license in Old Town
95.17
95.17
84683 06/12/2003 004176 BROADWING 4/15-5/14 Lg distance & Intemet svcs
1,195.00
1.195.00
84684 06112/2003 005055 BROWN, STEVE Reimb: Drafting prjt supplies
125.26
125.26
84685 06112/2003 002099 BUTTERFIELD ENTERPRISES June Lease: Old Twn Restrooms
826.00
826.00
84686 06112/2003 002103 CAP I 0 Membership dues: Aaron Adams
175.00
175.00
84687 06112/2003 003138 CAL MAT PW patch truck materials
1,766.01
1,766.01
84688 06/12/2003 004228 CAMERON WELDING SUPPLY Helium tanks refill:TCSD
27.50
27.50
84689 06112/2003 006391 CENTER ATTRACTIONS
Refund: Ovrpmt of TUP fees
10.00
10.00
84690 06112/2003 006375 CHRIST THE VINE Refund:Grading Depst: Tr 28510 Par 3
995.00
995.00
84691 06112/2003 006380 CHURCH OF RELIGIOUS SCIE Refund: Security Deposit
100.00
100.00
84692 06112/2003 003997 COAST RECREATION INC Playground Parts:Var Park Sites
676.77
676.77
84693 06112/2003 001009 PBX INC Construction of Trattic Monitoring Sys
111,637.80
111,637.80
84694 06/12/2003 001393 OATA TICKET INC
APR PRKG CITATION PROCESSING
Apr Prkg citation processing: Police
140.00
100.00
240.00
84695 06112/2003 006392 DAVCON DEVELOPMENT
Refund: Pennit Application:41427 San
3,065.00
3,065.00
84696 06112/2003 002990 DAVID TURCH & ASSOCIATES Jun retain advocacy firm: Fed
3,000.00
3,000.00
84697 06/12/2003 005859 DELUNA, WILLIAM Reimb:Airfare for NASROcf:6f29-7/5
856.00
856.00
84698 06/12/2003 004450 DENNIS A HIBBERT PLUMBING Repair gas leak in West Wing Bldg
120.00
120.00
Page2
apChkLst
06/12/2003
9:51:41AM
Final Check List
CITY OF TEMECULA
Page: 3
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Date
Vendor
Description
Amount Paid
Check Total
84699 06/12/2003 004888 DESERT PUBLICATIONS INC
June Ad in Ontario Visitor Guide
2,500.00
2,500.00
84700 06/12/2003 002701 OIVERSIFIED RISK
May special events premiums
1.203.19
1,203.19
84701 06/12/2003 006386 DOLAN-JIMENEZ, MARY
Refund:Cooking-Vegetarian
30.00
30.00
84702 06112/2003 006139 DOLPHIN HOTEL ASSOCIATES Htl:NASRO Cf:6I29-7/5:P.SJL.M.
1,605.60
1,605.60
84703 06/12/2003 005382 DON LA FORCE ASSOCIATES, I Repair Automatic Door: MPSC
695.00
695.00
84704 06/12/2003 004192 POWNS COMMERCIAL FUELI
Fuel for city vehicles: TCSD 61343
Fuel for city vehicles: LandlCIP 61345
Fuel for city vehicles: Police/Planning
Fuel for city vehicles: Mote/Admin 613
Fuel for city vehicles: B&S 61348
Fuel for city vehicles: CIP 61351
Fuel for city vehicles: City Van 61349
Fuel tor city vehicles: Traff 61953
453.68
393.28
376.12
304.80
246.41
133.70
66.12
34.20
2,008.31
84705 06/12/2003 006345 PUQUE, MIGUEL Refund: Citation No. 552
50.00
50.00
84706 06/12/2003 001380 E S I EMPLOYMENT SERVICES Temp help PPE 5/16/03 Heer
Temp help PPE 5/30/03 Heer
Temp help PPE 5/30/03 Rush
Temp help PPE 5/30/03 Bragg
Temp help PPE 5/30/03 Jones
Temp help PPE 5/30/03 Cammarota
Temp help PPE 5/30/03 Seng
Temp help PPE 5/30/03 Montecino
Temp help PPE 5/30/03 Novotny
Temp help PPE 5/30/03 Pena
2,666.82
2,393.30
1,908.00
1,425.60
1,418.97
1,194.29
1,162.09
1,109.60
1,108.97
834.60
15,222.24
84707 06/12/2003 005052 EMCOR SERVICE H.V.A.C. repair @ eRe - Gym
H.V.A.C. prevention Mote @ City Hall
H.V.A.C. repair @ City Hall
H.V.A.C. repair @ City Hall
HVA.C. repair @ Old Twn Ampl Boot
H.V.A.C. repair @ City Hall
7,071.00
1,986.00
240.16
232.98
140.98
81.25
9,752.37
84708 06112/2003 002060 EUROPEAN PELI & CATERING Refreshments: Closed Council Sessio
Refreshments: General Plan Mtg
269.81
119.49
389.30
84709 06112/2003 002797 EXPERTEES Mrkg-Econ Dev-City Mgr-HR office sh
6,569.09
6,569.09
Page3
apChkLst Final Check List Page: 4
06/12/2003 9:51 :41 AM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
84710 06112/2003 000165 FEDERAL EXPRESS INC Express mail services 171.85
Express mail services 103.25
Express mail services 90.06
Express mail services 60.62 425.78
84711 06/12/2003 004239 FISHER MERRIMAN SEHGAL Architectural svcs: Old Town Theater 459.64 459.64
84712 06/12/2003 001989 FOX NETWORK SYSTEMS INC Miscellaneous Computer Supplies 226.28 226.28
84713 06/12/2003 004944 FULLCOURT PRESS Business license application forms 918.11 918.11
84714 06/12/2003 000177 GLENNIES OFFICE PRODUCTS Office Supplies: Fire Dept 1.814.29
Office Supplies: Finance 987.11
Office Supplies: Bldg & Safety 584.31
Office Supplies: City Mgr 424.89
Office Supplies: CRC 280.23
Office Supplies: Planning 148.57
Office Supplies: Central Sves 78.73
Office Supplies: City Clerk 78.60
Office Supplies: RDA - Low Mod 27.96 4,424.69
84715 06112/2003 005947 GOLDEN STATE OVERNIGHT Express Mail Service:Fire/PW 23.71 23.71
84716 06/12/2003 004607 GRACE BUILDING Custodial svcs for park restrooms 4,120.00 4,120.00
84717 06/12/2003 003792 GRAINGER Cabinets for Fire Stn 92 section 1 338.60
Cabinets for Fire Stn 92 section 2 338.60 677 .20
84718 06/12/2003 003701 GRAPHIC MARKETING Reprint of Rack Brochure - Econ Dave 7,345.86 7.345.86
84719 06/12/2003 006384 GROVE, SHANNON Refund: Gymnastics-Waddlers 42.24 42.24
84720 06/12/2003 004053 HABITAT WEST INC Lg Cyn detention basin: Maint Agrmnt 761.66 761.66
84721 06/12/2003 003624 HOWELL, ANN MARIE Graphic design 5VCS: Eco Davel 75.43 75.43
84722 06/12/2003 006373 HYDRO SCAPE PRODUCTS INC Plumbing & Irrigation supplies:TCSD 135.05 135.05
84723 06/12/2003 003938 IAN DAVIDSON LANDSCAPE - I Ldscp design for 1st & Front Street 23.32 23.32
84724 06112/2003 006057 IKON OFFICE SOLUTIONS, INC Consulting svc to assist w/budget doc 1,000.00 1,000.00
Page:4
apChkLst
06/12/2003
9:51:41AM
Final Check List
CiTY OF TEMECULA
Page: 5
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Pate
Vendor
Description
Amount Paid
Check Total
84725 06112/2003 004833 IMPERIAL PAVING COMPANY I Repair City Hall Prklot asphalt
17,795.00
17,795.00
84726 06112/2003 001123 INDUSTRIAL DISTRIBUTION GR Leather gloves for PW Mntc
193.96
193.96
84727 06112/2003 001407 INTER VALLEY POOL SUPPLY I Pooi sanitizing chemicals
225.50
225.50
84728 06/12/2003 003266 IRON MOUNTAIN OFFSITE
Records mgmt microfilm storage unit
375.00
375.00
84729 06/12/2003 001186 IRWIN, JOHN
TCSD instructor earnings
160.00
160.00
84730 06112/2003 006381 JESUCRISTO, tGLESiA
Refund: Picnic Shelter rental
10.00
10.00
84731 06112/2003 006379 JULIAN CHARTER SCHOOL
Refund: Security Deposit
100.00
100.00
84732 06112/2003 000820 K R W & ASSOCIATES
Engineering Plan Check Svcs
4,260.00
4,260.00
84733 06/12/2003 000945 L P S COMPUTER SERVICE
Printers & Plotters repair/Mnte: IS
616.35
616.35
84734 06/12/2003 006149 LANDSCAPE SOLUTIONS
Res Imp prgm: Johnson, D& L
3,800.00
3,800.00
84735 06112/2003 002863 LAWSON PRODUCTS INC
Misc. parts & supplies for PW Mnte
Misc. parts & supplies for PW Mnte
474.28
125.51
599.79
84736 06112/2003 006383 LEAL, FRANCISCA
Refund:Cooking-Vegetarian
30.00
30.00
84737 06/12/2003 000586 LEXISNEXIS MATTHEW BENDE Adopted ordinances codification svcs
3,141.63
3,141.63
84738 06112/2003 003286 LIBRARY SYSTEMS & SERVICE May svcs-library system agrmt
May svcs-Iibrary system agrmt
11,134.90
1,103.20
12,238.10
84739 06112/2003 004905 LIEBERT, CASSIDY & WHITMOR Feb legal sves for HR matters
April legal svcs for H R matters
April legal svcs for HR matters
288.00
216.00
168.00
672.00
84740 06112/2003 003726 LIFE ASSIST INC
Paramedic squad supplies: Fire
Paramedic squad supplies: Fire
Paramedic squad supplies: Fire
Paramedic squad supplies: Fire
Credit: Returned paramedic supplies
946.37
807.81
107.25
91.70
-118.19
1,834.94
84741 06/12/2003 004087 LOWE'S
Misc hardware supplies: West Wing
224.46
224.46
PageS
apChkLst
0611212003
Final Check List
CITY OF TEMECULA
9:51:41AM
Page: 6
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Date
Vendor
Description
84742 06/1212003 003782 MAIN STREET SIGNS
Replacement signslhardware:Vail Ran
var City signs/hardware:PW Maint.
var City signslhardware:PW Maint.
City entrance sign
84743 06/1212003 006376 MALEK DEVELOPMENT Refund:Eng Dep:31725 Pia Pica Rd
84744 0611212003 001967 MANPOWER TEMPORARY SER temp help wle 5/18 Norton
temp help wle 5/25 Norton
Credit:5/16 hrs incorrect Norton
84745 0611212003 000217 MARGARITA OFFICIALS ASSN May Softball Officiating Services
84746 06/1212003 004929 MARK FISHER COMPANY, THE Ad for Orange County Driving Tour Gu
84747 0611212003 004170 MATRIX IMAGING PROPUCTS l Color Scanner for Records Mgmt
84748 06/1212003 006382 MAY, DAVID Refund: Introto Flower Design
84749 0611212003 001384 MINUTEMAN PRESS Envelopes for Sr Ctr & Tee
84750 06/12/2003 000973 MIRACLE RECREATION EQUIP Playground equip:var park sites
84751 06/1212003 006385 MOlK, KORI Refund:Cooking-Vegetarian
84752 0611212003 002727 MUNICIPAL MGMT ASSOCIATIO MMASC Conf:7/30-31:A.Adams
84753 0611212003 006077 NTH GENERATION COMPUTIN Purchase & install SAN tape Library
Add'l equip for SAN tape Library
Add'l backup software for SAN tape
Backup Software for SAN tape Library
3 VR Carepaq Service
84754 0611212003 006255 NAT'l ASSN OF SCHOOL
NASRO Conf:6/29-7/5:L.M.lD.S.
84755 0611212003 005608 NEUMAN, JASON
Reimb:NFPA Conf:5117-21103
84756 06/1212003 002139 NORTH COUNTY TIMES- ATTN: May constr. update ads:PW
84757 0611212003 006378 O'NEil. RITA
Refund: Security Dep:6/05/03
Amount Paid
Check Total
2,499.69
2,498.46
501.04
253.44
5,752.63
995.00
995.00
1,031.85
830.19
-3.27
1,858.77
3,450.00
3,450.00
485.45
485.45
7,345.66
7,345.66
75.00
75.00
294.10
294.10
1,027.30
1,027.30
30.00
30.00
150.00
150.00
78,020.43
34.490.78
3,066.57
1,844.68
1,697.00
119.119.46
750.00
750.00
600.03
600.03
583.68
583.68
100.00
100.00
Page:6
apChkLst
06/12/2003
9:51:41AM
Final Check List
CITY OF TEMECULA
Page: 7
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Date
Vendor
Description
Amount Paid
Check Total
84758 06112/2003 002292 OASIS VENDING City Hall coffeelkitchen supplies
West Wing coffee/kitchen supplies
403.66
129.30
532.98
84759 06/12/2003 003964 OFFICE DEPOT BUSINESS SVS Software for police dept.
printer for tablets:Fire Prey
Office Supplies for Planning
Office Supplies for Planning
1,023.61
430.82
194.83
179.37
1,828.63
84760 06/12/2003 002105 OLD TOWN TIRE & SERVICE
City vehicle repair/maint svcs
City vehicle repair/maint svcs
337.98
202.90
540.88
84761 06/12/2003 004538 PAULEY EQUIPMENT COM PAN equipment rental for weed abatement
822.00
622.00
84762 06112/2003 003218 PELA
May Ldscp plan check svcs: TCSP
6,370.00
6,370.00
84763 06112/2003 000249 PETTY CASH
Petty cash reimbursement
303.08
303.08
84764 06112/2003 000580 PHOTO WORKS OF TEMECULA May Photo Developing for CIP Div
144.75
144.75
84765 06/12/2003 001999 PITNEY BOWES postage meter ink cartridge
114.99
114.99
84766 06112/2003 000254 PRESS ENTERPRISE COMPAN May recruit ads for H.R. dept.
3,006.10
3,006.10
S4767 06112/2003 002880 PRO-CRAFT SASH & 8UPPL Y Res impN prgm: Bevel
300.00
300.00
84768 06112/2003 005075 PRUPENTIAL OVERALL SUPPL Uniforms:TCSD Maint Crews
794.06
794.06
84769 06/12/2003 004453 R C ENTERPRISES
Rubber stamp for Rev. Mgr.
25.86
25.86
84770 06112/2003 000262 RANCHO CALIF WATER DI8T
Various water meters
Various water meters
Various water meters
Various water meters
20,428.9S
1,155.13
361.13
25.43
84771 06/12/2003 004483 RECREONICS INC
recreation supplies for Aquatics
666.52
21,970.67
666.52
84772 06112/2003 004584 REGENCY LIGHTING
West Wing electrical supplies
266.31
266.31
84773 06112/2003 001500 REGIONAL TRAINING CENTER- SupeNisor's Academy:Oct '02:Hillberg
575.00
575.00
84774 06112/2003 006393 RENCH, WILLIAM M.
Refund:permit fees: 39330 Kimberly L
1,954.00
1,954.00
Page:?
apChkLst
06112/2003
9:51:41AM
Final Check List
CITY OF TEMECULA
Page: 8
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Vendor
Description
Amount Paid
Check Total
Check # Date
84775 06/12/2003 003591 RENES COMMERCIAL MANAGE weed control:Marg. Park Channel
900.00
900.00
84776 06/12/2003 002110 RENTAL SERVICE CORPORA TI Rental Equipment for PIN Main!.
118.41
118.41
84777 06/12/2003 000955 RIVERSIPE CO SHERIFF SW ST Weslern Days patrol svcs:5/17-18
1,229.2S
1,229.28
84778 06112/2003 003587 RIZZO CONSTRUCTION INC
Repairs:Snack Bar @ Temeku Hills P
1.750.00
1.750.00
84779 06112/2003 000873 ROBERTS, RONALD H.
reimb:Calif. Trans. Comm. mtg:5121-2
reimb:Legistative Action Days:5/14-15
33.87
6.00
39.87
84780 06112/2003 006395 ROBINSON, ELAINE
release claims agreement pmt
1,258.12
1,258.12
84781 06112/2003 006377 SANTIBANEZ, MERCEDEZ
Refund: Security Deposit
100.00
100.00
84782 06112/2003 000697 SISTER CITIES INTERNATIONA City's annual membership for 2003
435.00
435.00
84783 06/12/2003 000645 SMART & FINAL INC
Recreation Supplies ~ Teen Prgm
Supplies for Finance Dept
64.13
46.15
110.28
84784 06112/2003 000537 SO CALIF EDISON
various electrical meters
various electrical meters
Jun 2-00-987-0775 Vail Ranch
Jun 2-10-331-1353 Fire Stn 84
May 2-19-6S3-3255 Front St Ped
57,050.77
9,316.22
5.020.03
1,187.37
472.04
73,046.43
84785 06112/2003 000519 SOUTH COUNTY PEST
emerg. pest control svcs:Sprts Prk
84.00
84.00
84786 06/12/2003 006394 SPillMAN, ANDREA
release claims agreement pmt
1,109.51
1,109.51
84787 06/12/2003 000305 TARGET STORE
supplies for Aquatics prgm
rec. supplies for High Hopes
335.22
136.17
471.39
84788 06112/2003 005985 TECHNOLOGY INTEGRATION G Quantum SDlT Tapes
3,496.77
3,496.77
84789 06/12/2003 000310 TEMECULA CREEK INN INC Room Rental:league Conf:5/29103
2,463.15
2,463.15
84790 06/12/2003 004402 TEMECULA VAllEY WINEGRO TicketR.RobertsWinemakers event
126.00
126.00
84791 06112/2003 000320 TOWNE CENTER STATIONERS Office Supplies for land Dev
1,494.30
1 .494.30
Page:8
apChkLsl
06112/2003
9:51 :41AM
Final Check List
CITY OF TEMECULA
Page: 9
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Date
Vendor
Description
Amount Paid
Check Total
84792 06/12/2003 000978 TRAUMA INTERVENTION PRG 4th qtr emerg.response vol.prgm
1,920.00
1,920.00
84793 06/12/2003 002702 US POSTAL SERVICE Postage meter deposit
4,711.86
4,711.86
84794 06/12/2003 004486 UNION 76 City vehicle fuel usage
23.80
23.80
84795 06112/2003 004504 VAIL RANCH SELF STORAGE Jun off site storage for Records Mgmt
30.00
30.00
84796 06/12/2003 000332 VANDORPE CHOU ASSOCIATE May Bldg plan check svcs
7,369.92
7,369.92
84797 06/12/2003 004261 VERIZON CALIFORNIA May xxx-14GB P.O. satellite stn
May xxx-5509 general usage
May xxx-1540 O.T. Prk Lot
May xxx-2629 Naggar
May xxx.5780 general usage
May xxx-S840 general usage
May xxx-0049 general usage
May xxx-1289 Pratt
May xxx-273Q elevator
May xxx-2670 911 auto dialer
84798 06/12/2003 004279 VERIZON CALIFORNIA INC. May access-eRG phone line
May access-rvsd co phone line
84799 06/12/2003 004789 VERIZON INTERNET SOLUTION Phone svcs/EOC backup @ stn 84
84800 06/12/2003 001890 VORTEX DOORS repair to bay doors:Fire Stn 84
84801 06/12/2003 000339 WEST PUBLISHING CORP Apr Judicial Updates for City Hall
84802 06/12/2003 000621 WESTERN RIVERSIDE COUNC May 2003 TUMF Fees
84803 06/12/2003 002109 WHITE CAP INPUSTRIES INC supplies for PW Maint.
84804 06/12/2003 004829 WILSON GROUP LLC, THE Jun legislative lobbyist/consult SVCS
315.87
145.21
90.71
33.36
33.36
33.36
30.84
30.11
29.73
29.59
772.14
349.12
272.75
621.87
69.95
69.95
471.81
471.81
129.30
129.30
179,550.00
179,550.00
160.58
160.58
3,500.00
3,500.00
Sub lolal for UNION BANK OF CALIFORNIA:
736,159.42
Page9
ITEM 4
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANC
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/City Council
Herman Parker, Director of Community serviceq
June 24, 2003
DATE:
SUBJECT:
Riverside County Library Contract Amendment NO.6
PREPARED BY:
~
Phyllis L. Ruse, Deputy Director of Community Services
RECOMMENDATION:
That the City Council:
1. Approve Amendment NO.6 to the Agreement to Provide Library Services (Additional Staff).
2. Authorize the expenditure of an amount not to exceed $150,000 to fund the Temecula
Library Volunteer Coordinator half-time position and to subsidize funding to maintain the
Senior Reference Librarian and Reference Librarian positions for fiscal year 2003-04.
DISCUSSION: The Riverside County Library system (RCLS) has been operating
under a contract with Library Systems and Services, Inc. (LSSI) since July 1, 1997. This contract is
administered by RCLS by breaking the County into three service areas. The Temecula Library is in
the Mid-South Zone Service Area and receives funding from Temecula, Sun City, Lake Elsinore,
Canyon Lake, San Jacinto, Valle Vista, Idyllwild, Calimesa, and Anza regions.
For the past year, the Temecula Branch Library has been open to the general publiC for 52 hours
per week. The library staffing for FY 2002-2003 was as foilows:
POSITION TITLE
NUMBER OF FULL TIME
EQUIVALENTS (FTE)
1
2
1
2
4.5
.5
L
16.0
Librarian (Branch Manager)
Reference Librarian
Librarian Associate
Library Technician
Library Assistant
Volunteer Coordinator
Library Page
TOTAL
R:\RUSEPIAGENOASI2003-04 library amendment.doc
The City of Temecula has subsidized 2.5 full time equivalent positions in FY 1998-99 through FY
2002-03 in an amount not to exceed $150,000. The positions provided for are two Reference
Librarians and a half-time Volunteer Coordinator. Without the additional revenue from the City, the
RCLS would not be able to provide these positions or the services that they offer to the community.
FISCAL IMPACT: Cost to provide funding for 2.5 full time equivalent positions at the
library is not to exceed $150,000. Sufficient funding has been included in the Council discretionary
line item in the approved FY 2003-04 Community Support budget.
R:\RUSEP\AGENDAS\2003-04 library amendment.doc
SIXTH AMENDMENT TO AGREEMENT TO PROVIDE LIBRARY SERVICES
(Additional Staff)
COUNTY OF RIVERSIDE - RIVERSIDE COUNTY LIBRARY SYSTEM
And the CITY OF TEMECULA
(Fiscal Year 2003-2004)
WHEREAS, the County of Riverside, Riverside County Library System ("County")
and the City of Temecula ("City") have entered into an agreement to provide library services
(additional staff) (the "Agreement"), as amended, and the parties wish to further amend the
Agreement, to be effective on July 1, 2003:
NOW THEREFORE, the parties agree as follows:
A. Section 1. RESPONSIBILITY OF THE PARTIES is amended to change the time
period in sub-section 1.1, as amended, to "July 1, 2003 to June 30, 2004". All other
provisions of the section, as amended, shall remain unchanged.
B. Section 4.2 Term is amended to add the following paragraph to the end of the
existing section, as amended:
"The term of this Agreement is extended, and shall include the time period
from July 1, 2003 through June 30, 2004. City or County may terminate this
Agreement, as amended, for no cause, on the giving of thirty (30) days
written notice to the other party."
R:\RUSEP\CONTRACT\2003-2004 library amendment no 6.doc 2
C. All other terms and conditions of the Agreement, as amended, shall remain
unchanged and remain in full force and effect.
IN WITNESS WHEREOF, County and City have caused this Fifth Amendment to be duly
executed by the parties hereto:
CITY OF TEMECULA
COUNTY OF RIVERSIDE
By:
Jeffrey E. Stone, Mayor
By:
Chair, Board of Supervisors
Attest:
Susan W. Jones, CMC, City Clerk
Attest:
Clerk to the Board of Supervisors
By:
Deputy
APPROVED AS TO FORM:
Peter M. Thorson
City Attorney
APPROVED AS TO FORM:
WILLIAM C. KATZENSTEIN
County Counsel
By:
Peter M. Thorson, City Attorney
By:
Deputy County Counsel
LIBRARY SYSTEMS AND SERVICES, LLC
By:
President, LSSI
R:IRUSEPICONTRACT\2003-2004 library amendment no 6.doc 3
ITEM 5
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANC
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO: City Manager/City Council
FROM: ~{AWilliam G. Hughes, Director of Public Works/City Engineer
DATE: June 24, 2003
SUBJECT: Offer to Purchase City Property for Murrieta Creek Project
PREPARED BY: Ul Ronald J. Parks, Deputy Director of Public Works
RECOMMENDATION:
That the City Council:
1. Adopt a resolution entitled:
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING THE OFFER TO PURCHASE 64,600
SQUARE FEET OF REAL PROPERTY BEING A PORTION OF
APN 922-100-017 BY THE RIVERSIDE COUNTY FLOOD
CONTROL AND WATER CONSERVATION DISTRICT FOR THE
PURCHASE PRICE OF $161,500.00 TO BE USED FOR FLOOD
CONTROL PURPOSES.
2. Assign the purchase price of $161,500.00 to Riverside County Flood Control and Water
Conservation District as a portion of the City's contribution to funding the Murrieta Creek
Project.
BACKGROUND: The U.S. Army Corp of Engineers is in its third year of engineering
design on the $90 Million Murrieta Creek Project. The project is sponsored jointly by Riverside
County Flood Control and Water Conservation District (RCFC&WCD), and by the U.S. Army
Corp of Engineers (Corp). The Corp anticipates advertising Phase I of the project construction
bids in July, 2003. Right-of-way acquisition is the responsibility of the Local sponsor and
RCFC&WCD has been busy with appraisals, making offers, and initiating Eminent Domain
actions to acquire the necessary right-of-way for construction.
The City property is at the upper end of Phase I and was purchased by the City as part of the
First Street Bridge project acquisition. It is located on the south side of First Street and east of
Pujol Street adjacent to the Boys & Girls Club Facility. Much of the property will be used as a fill
area and RCFC&WCD has indicated that any excess property would be deeded back to the City
upon completion of the Murrieta Creek project.
r:\agenda report\2003\0624\Murrieta Creek Offer to Purchase
The City is currently processing a Joint Funding Agreement with RCFC&WCD and the cities of
Murrieta and Temecula in which the cities are being asked to participate in the matching funds
required to gain the 65% federal participation in this project. Staff is recommending that the
purchase price of $161,500.00 be credited against the $11 Million City of Temecula commitment
identified in the Joint Funding Agreement.
FISCAL IMPACT:
Reduction of $161 ,500.00 in City's commitment identified in the Joint Funding Agreement for the
Murrieta Creek project.
ATTACHMENTS:
1. Resolution No. 03-_
2. Offer to Purchase
3. Appraisal Summary Statement
4. Notice of Intention to Condemn Real Properly
5. Right-of-Way Map
2
r:\agenda report\2003\0624\Murrieta Creek Offer to Purchase
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA ACCEPTING THE OFFER TO PURCHASE 64,600
SQUARE FEET OF REAL PROPERTY BEING A PORTION OF
APN 922-100-017 BY THE RIVERSIDE COUNTY FLOOD
CONTROL AND WATER CONSERVATION DISTRICT FOR THE
PURCHASE PRICE OF $161,500.00 TO BE USED FOR FLOOD
CONTROL PURPOSES.
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS
FOLLOWS:
Section 1. The City of Temecula is owner of the property commonly known as
Riverside County Assessor's Parcel Number 922-100-017, which is located on the south side of
First Street, east of Pujol Street, Temecula, California;
And, the Riverside County Flood Control and Water Conservation District
needs a portion of that property to construct Phase 1 of the Murrieta Creek Project;
And, the Riverside County Flood Control and Water Conservation District
has presented an Offer to Purchase 64,600 Square Feet of said property for a purchase price of
$161,500.00;
And, the Riverside County Flood Control and Water Conservation District
has provided an Appraisal Summary Statement with the Offer to Purchase, which correctly
states the fair market value of the property;
WHEREAS, The City of Temecula wants to cooperate with the Riverside County Flood
Control and Water Conservation District and the U. S. Army Corp of Engineers in getting
construction started on the Murrieta Creek Project, Phase I;
And, the City of Temecula has reviewed the Offer to Purchase and the
Appraisal Summary and agree that they correctly represent the fair market value of the property;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula
hereby approves the sale of this property to Riverside County Flood Control and Water
Conservation District for the terms and purchase price as presented in the Offer to Purchase
and authorizes the City Manager and Mayor to sign the necessary documents to convey the
property with free and clear title.
PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula at
a regular meeting held on the 24th day of June, 2003.
Jeffrey E. Stone, Mayor
ATTEST:
Susan W. Jones, CMC, City Clerk
3
r:\agenda report\2003\0624\Murrieta Creek Offer to Purchase
(SEAL)
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )
CITY OF TEMECULA )
I, Susan W. Jones, CMC, City Clerk of the City of Temecula, California, do hereby certify that
Resolution No. 03-_ was duly and regularly adopted by the City Council of the City of
Temecula at a regular meeting thereof held on the 24th day of June, 2003, by the following vote:
AYES:
o
COUNCILMEMBERS:
NOES:
o
COUNCILMEMBERS:
ABSENT:
o
COUNCILMEMBERS:
Susan W. Jones, CMC, City Clerk
4
r:\agenda report\2003\0624\Murrieta Creek Offer to Purchase
RIVERSIDE COUNTY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT
O!!!;R IO EURCHA~E
PROJECT:
APNIP ARCEL(S):
OWNER:
MURRIETA CREEK PROJECT
922-100-017
CITY OF TEMECULA
The RIVERSIDE COUNTY FLOOD CONTROL AND WATER
CONSERVATION DISTRICT hereby makes you an offer of $161.500.00 as the purchase price for
the fee simple interest in a portion of the land known as Assessor's Parcel Number 922-100-017.
You are not required to vacate your property until payment of the purchase price has
been made available to you.
Your signature on the Offer to Purchase is strictly for the purpose of verification
that such an offer has been made. The attached pamphlet explains your rights as a property owner.
THIS IS NOT A CONTRACT TO PURCHASE, BUT MERELY AN
OFFER TO PURCHASE FOR THE AMOUNT INDICATED ABOVE,
WHICH IS SUBJECT TO THE BOARD OF SUPERVISORS' APPROVAL.
Received a copy of the above offer this day
of
By:
By:
PC\81727
APPRAISAL SUMMARY STATEMENT
Project:
Murrieta Creek Flood Control Channel, Phase I
APN:
922-100-017
RCFC Parcel No.
7021-16
Owner:
City of Temecula
Property Address:
South side of First Street, east of Pujol Street, Temecula
Total Property Area:
80,150 SF
Property to be acquired:
Part X Full
BASIS OF APPRAISAL
The market value for the property to the acquired by the State is based upon an appraisal prepared in
accordance with the accepted appraisal principles and procedures.
Code of Civil Procedure Section 9 1263.320 defines Fair Market Value as follows:
a. The fair market value ofthe property taken is the highest price on the date of valuation that
would be agreed to by a seller, being willing to sell but under no particular or urgent
necessity for so doing nor obliged to sell, and a buyer, being ready, willing, and able to buy,
but under no particular necessity for so doing, each dealing with the other with full
knowledge of all the uses and purposed for which the property is reasonable, adaptable, and
available.
b. The fair market value of property taken for which there is no relevant comparable market is
its value on the date of valuation as determined by any method of valuation that is just and
equitable.
Recent sales of comparable properties and income data are utilized as appropriate. Full consideration is
given to zoning, development potential and the income the property is capable of producing.
I
SUMMATION METHOD
A. Value of the whole before acauisition:
Land:
Improvements
$200,000 (land only)
$_N/A
B. Value of the part aCQuired as part of the whole:
Land:
Improvements:
$161,500
$_N/A
C. Value of the remainder as part of the whole: (A - B)
Land:
Improvements:
$38,500
$_N/A
D. Value of the remainder after the aCQuisition.
disrel!:ardinl!: special benefits:
Land:
Improvements:
$38,500
$_N/A
E.
Severance Damal!:es: (C - D)
Land:
Improvements:
$_-0-
$_N/A
F.
Value of the remainder after the aCQuisition.
considerinl!: special benefits:
Land:
Improvements:
$38,500
$_N/A
G. Special Benefits: (F - D)
Land:
Improvements:
$_-0-
$_N/A
H. Net Damal!:es or Net Soecial Benefits: (E - G)
Note: Cannot be less than -0-
I. Total Just Compensation: (B + H)
J. Value of Temoorarv Construction Easement:
K. Total: (I + 1)
2
$200,000 (land only)
$161,500
$38,500
$38,500
$-0-
$38,500
$-0-
$
$161,500
$-0-
$161,500
-0-
BASIS OF APPRAISAL
BASIC PROPERTY DATA
Interest Valued:
Fee simple
Date of Valuation:
January 20, 2003
Applicable Zoning:
os-C
Total Property Area:
80,150 SF
Area to be acquired:
64,600 SF
TCE Area & Term Including Access Rights: N/A Term: N/A
Highest and Best Use:
Open space use
Current Use:
Pump station and open space use
THE FOLLOWING INFORMATION IS BASED ON THE ENTIRE SUBJECT PARCEL
I. The Sales Comparison Approach is based on the consideration of comparable sales, which
sold within a reasonable time at a value range of $0.28 to $3.50 per square foot for open
space land.
la. The Sales Comparison Approach is based on the consideration of comparable land and
improved sales.
Sales Comparison Approach Applicable...-X... Not Applicable_
Indicated value of the parcel by Sales
Comparison Approach $200,000 (land only) _
See attached sheet for principal transactions
2. The Cost Approach is based in part on a Replacement Cost New of improvements less
depreciation. Cost information was obtained from cost service publications and/or
knowledgeable vendors.
Cost Approach Applicable_ Not Applicable-X
Total Replacement Cost New
$
Depreciation from all causes
Value oflmprovements in Place
Land (estimated by direct sales comparison)
$ (
$
$
)
Indicated value of the larger parcel by
Cost Approach
$
3
3. The Income Capitalization Approach is based on an analysis of income and expenses to the
property .
Income Approach Applicable_ Not Applicable--.X
Net Operating Income $
Overall Capitalization Rate %
Indicated value of the larger parcel by
Income Capitalization Approach $
The Cost Approach and Income Capitalization Approach were considered in the valuation of the subject
parcel, but were found to be not applicable in this appraisal. The Sales Comparison Approach was used
because it is considered the most reliable method of valuation for vacant land.
COST TO CURE DAMAGES
(Not applicable)
$
N/A
Total Cost to Cure Damages
$_N/A
CONSTRUCTION CONTRACT WORK
Not Applicable
This summary of the basis of the amount established as just compensation is presented in compliance
with Federal and State law and has been derived from a formal appraisal prepared by Riggs & Riggs, Inc.
for the Riverside County Flood Control and Water Conservation District.
RIGGS & RIGGS, INC.
Date: February 11,2003
By:
4
CA Code (7267.2)
7267,2. (a) Prior to adopting a resolution of necessity pursuant to Section 1245.230 of the Code of Civil
Procedure and initiating negotiations for the acquisition of real property, the public entity shall establish
an amount which it believes to be just compensation therefor, and shall make an offer to the owner or
owners of record to acquire the property for the full amount so established, unless the owner cannot be
located with reasonable diligence. The offer may be conditioned upon the legislative body's ratification
of the offer by execution of a contract of acquisition or adoption of a resolution of necessity or both. In
no event shall the amount be less than the public entity's approved appraisal of the fair market value of
the property. Any decrease or increase in the fair market value of real property to be acquired prior to the
date of valuation caused by the public improvement for which the property is acquired, or by the
likelihood that the property would be acquired for the improvement, other than that due to physical
deterioration within the reasonable control of the owner or occupant, shall be disregarded in detennining
the compensation for the property. (b) The public entity shall provide the owner of real property to be
acquired with a written statement of, and summary of the basis for, the amount it established as just
compensation. The written statement and summary shall contain detail sufficient to indicate clearly the
basis for the offer, including, but not limited to, all of the following information:
(1) The date of valuation, highest and best use, and applicable zoning of property.
(2) The principal transactions, reproduction or replacement cost analysis, or capitalization
analysis, supporting the determination of value.
(3) Where appropriate, the just compensation for the real property acquired and for
damages to remaining real property shall be separately stated and shall Include the
calculations and narrative explanation supporting the compensation, Including any
offsetting benefits.
(c) Where the property involved is owner occupied residential property and contains no more than four
residential units, the homeowner shall, upon request, be allowed to review a copy ofthe appraisal upon
which the offer is based. The public entity may, but is not required to, satisfy the written statement,
summary, and review requirements of this section by providing the owner a copy of the appraisal on
which the offer is based. (d) Notwithstanding subdivision (a), a public entity may make an offer to the
owner or owners of record to acquire real property for less than an amount which it believes to be just
compensation therefor if (1) the real property is offered for sale by the owner at a specified price less
than the amount the public entity believes to be just compensation therefor, (2) the public entity offers a
price which is equal to the specified price for which the property is being offered by the landowner, and
(3) no federal funds are involved in the acquisition, construction, or project development. (e) As used in
subdivision (d), "offered for sale" means any ofthe following:
(1) Directly offered by the landowner to the public entity for a specified price in advance of
negotiations by the public entity.
(2) Offered for sale to the general public at an advertised or published, specified price set no
more than six months prior to and still available at the time the public entity initiates contact
with the landowner regarding the public entity's possible acquisition of the property.
5
" ' , ,':' ,
I' OJl1!)N $J'1\Pti:~R~$tRIcrEl> ...,;,NUS,ALES, StJMl\'IA~V
Ili\Ja Lotail~fi Sale Date Land Area (sF) Salel~rice
No. Al'N FloodPlain Zoning Sal\ll~rltelSF
6 Front Street, South of 1 st Street, Temecula 4/11/00 61,420 $215,000
APN 922-100-023 2/3 inside AE; SC & OS-C $3.50
partial tloodway
9 Nicholas Road, East of Calle Colibri, 1/18/02 216,928 $255,000
Murrieta
APN 957-140-010 Outside VoL $1.18
10 NWC Adams Ave. & Elm St., Murrieta 6127/00 610,276 $682,500
APN 909-060-013 Partial GJ $1.12
II NEC Eucalyptus Ave. & "c" Street 7/28/99 217,830 $175,000
Colton
APN 0254-071-30 Outside; Habitat IndlComml $0.80
16 28613 Pujol Street, Temecula 10/5/00 135,036 $375,000
APN 922-053-0 II and 013 Partial R3 $2.78
18 SWC 7th Street and Pine Street, 10/17/00 417,305 $115,000
San Jacinto
APN 431-180-061 Inside/Floodway R1 $0.28
OFFICE OF THE
CLERK OF THE BOARD OF SUPERVISORS
1" FLOOR, COUNTY APMINISTRATlVE CENTER
P.O. BOX 1147,4080 LEMON STREET
RIVERSIDE, CA 92502-1147
PHONE: (909) 955-1060
FAX: (909) 955-1071
NANCY ROMERO
Clerk of the Board
KECIA HARPER
Assistant Clerk of the Board
April 23, 2003
Mr. Ronald J. Parks
City of T emecula
Public Works Department
P.O. Box 9033
Temecula, CA 92589-9033
RE EIVED
APR 2 5 2003
CITY OF TEMECULA
ENGINEERING PEPARTMENT
SUBJECT: CONDEMN REAL PROPERTY
Resolution No. F2003-19
Project No. 7-0-0021
APN 922-100-017
PROJECT: Murrieta Creek Flood Control Project
Mr. Ronald J. Park:
We have enclosed herewith the following documents:
1 . Notice of Intention to Condemn Real Property for Flood Control
Purposes (Resolution No. F2003-18)
2. Record of Survey
3. Right of Way Map.
As noted in the enclosed Notice, you may appear and be heard on four specified
matters, which are underlined, for your quick and easy reference.
You may use the second page portion of this letter to request to be heard on these
matters; however, it must be filed or delivered within 15 days after this letter and
enclosed Notice were mailed to you. Please mail or personally deliver your request to:
Nancy Romero
Clerk, Board to Supervisors
County Administrative Center
Post Office Box 1147
4080 Lemon Street, 14th Floor
Riverside, California 92502-1147
If you should have any questions concerning the proposed public improvement, we
suggest that you contact:
Warren D. Williams
General Manager-Chief Engineer
Flood Control
1995 Market Street
Riverside, California 92501
Telephone: (909) 955-1275
Sincerely,
Nancy Romero
CLERK OF THE BOARD
By:
REQUEST TO
APPEAR AND BE HEARD ON THE MATTERS REFERRED TO IN THE NOTICE OF
INTENTION TO CONDEMN REAL PROPERTY FOR FLOOD CONTROL PURPOSES ON
MAY 20,2003 AT 1:30 PM. (4/15/03,11.4)
NAME:
ADDRESS:
TELEPHONE NO.: ( )
DATED:
(Signature)
~
81563.1
1
2
3
BOARD OF SUPERVISORS
RIVERSIDE COUNTY FLOOD CONTROL
AND WATER CONSERV A nON DISTRICT
RESOLUTION NO. F2003-18
4
5
6
NOTICE OF INTENTION TO CONDEMN REAL PROPERTY
FOR FLOOD CONTROL PURPOSES
7
BE IT RESOLVED, DETERMINED AND ORDERED by the Board of
8 Supervisors of the Riverside County Flood Control and Water Conservation District, County of
9 Riverside, State of California, in regular session assembled on April 15, 2003, and NOTICE IS
10
11
12
HEREBY GIVEN as follows:
I. That this Board intends to adopt a resolution of necessity authorizing the
condemnation of those certain parcels of real property for the construction of
13
14
the Murrieta Creek Project, described as Parcel 7021-IA also known as APN:
922-210-011, Parcels 7021-IB and 7021-IC also known as APNs: 922-110-021
15
16
and 922-110-022, Parcel 702]-2 also known as APN: 922-210-052, Parcels
17
18
7021-3A, 7021-3B, 7021-3C and 7021-3AT also known as APNs: 922-110-
029, 922-110-030, 922-110-031 and 922-110-032, Parcel 7021-4 also known as
19
APN: 922-110-008, Parcel 7021-5T also known as APN: 922-110-007, Parcel
20
7021-7 also known as APN: 922-110-010, Parcels 7021-8A and 7021-8B also
21
known as APNs: 922-] 10-025 and 922-110-028, Parcels 7021-9 and 7021-9T
22
also known as APN: 922-110-020, Parcels 7021-IOA, 7021-IOB and 7021-IOC
23
24
also known as APNs: 922-110-018, 922-110-019 and 922-110-026, Parcels
25
7021-11 and 7021-1 IT also known as APN: 922-100-022, Parcel 7021-12 also
26
known as APN: 922-100-021, Parcel 7021-13 also known as APN: 922-100-
27
023, Parcels 7021-14 and 7021-14T also known as APN: 922-100-010, Parcels
28
7021-15 and 7021-15T also known as APN: 922-100-006, Parcel 7021-16 also
- I -
APR 1 5 2003 1l.4
,
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 2:
23
24
25
26
27
28
81563.1
known as APN: 922-100-017, Parcels 7021-17, 7021-17B and 7021-17C also
known as APNs: 922-100-019, 922-100-020 and 922-100-028 and as shown on
Record of Survey on file in the Office of the Clerk of the Board, and to hold a
public hearing on May 20, 2003, at I :30 p.m. in the meeting room of the Board
of Supervisors located on the I st floor, County Administrative Center, 4080
Lemon Street, Riverside, California, at which time each person whose real
property is sought to be condemned and whose name and address appears on
the last equalized County Assessment Roll and who has filed a timely written
request to appear and be heard, will be given an opportunity to be heard on the
following matters:
a. Whether the public interest and necessity require the construction of the
public improvement.
b. Whether the public improvement is planned and located in the manner
that will be most compatible with the greatest public good and the least
private injury.
c. Whether the real property sought to be acquired is necessary for the
construction of the public improvement.
d. Whether the offer required by Section 7267.2 of the Government Code
has been made to the owner or owners of record.
That the failure of any person, whose real property is sought to be condemned,
to file a written request to appear and be heard with the Office of the Clerk of
the Board within 15 days after a copy of the resolution is mailed to, or
personally served upon such person, will result in his or her waiver of the right
to appear and be heard.
- 2 -
,
1
2
3
4
5
81563.1
BE IT FURTHER RESOLVED that the Office of the Clerk of the Board shall cause
a copy of this resolution and a copy of the Record of Survey and Right of Way Maps to be
mailed to or personally served upon each person whose real property is sought to be condemned
and whose name and address appears on the last equalized County Assessment Roll.
6
7
8
9
GW:lib
10
11
12
13
Roll Call:
Ayes:
Noes:
Absent:
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
FORM APPROVED
COUNTY COUNSEL
Buster, Venable, Wilson and Ashley
None
Tavaglione
APR 0 7 2003
By~~.Q~
ASSISTANT COUNTY COUNSEL
- 3 -
APR 1 5 z003 1\.1-
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ITEM 6
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANCE
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO: City Manager/City Council
FROM: rrJ V William G. Hughes, Director of Public Works
DATE: June 24, 2003
SUBJECT: Public Works Fiscal Year 2003-2004 Annual Maintenance Agreements
PREPARED BY: &~fBradley A. Buron, Maintenance Superintendent
RECOMMENDATION: That the City Council approve the minor annual maintenance and
construction contracts for Fiscal Year 2003-2004 with:
1. Becker Engineering in an amount not to exceed $100,000.00
2. Cajer Equipment Rental in an amount not to exceed $100,000.00
3. Imperial Paving Company, Inc., in an amount not to exceed $100,000.00
4. Monteleone Contractors, Inc., in an amount not to exceed $100,000.00
5. Murrieta Development Co., in an amount not to exceed $100,000.00
6. Rene's Commercial Management, in an amount not to exceed $100,000.00
7. Toran Development & Construction in an amount not to exceed $100,000.00
BACKGROUND: Each year the City enters into numerous maintenance and construction
agreements with various contractors that perform minor (small job) maintenance and construction jobs.
These jobs usually range in cost from over $1,000 to under $25,000 and involve miscellaneous repairs to
drainage areas, sidewalks, curbs, cutters, and storm drains to include excavation. Nevertheless, each
job requires an agreement between the City and the contractor. In an effort to streamline these
contractual requirements, staff has taken measures to place under agreement seven (7) contractors that
are very capable of performing these routine jobs with little notice. Essentially, these agreements will
give staff administrative tools needed to efficiently execute minor maintenance and construction work by
having executed agreements which satisfy insurance, prevailing wage requirements, terms and
conditions as well as a general scope of work. This contracting technique is widely used by cities to
employ a higher more responsive maintenance capability. Also, in the event of harsh weather that can
impinge the safety of the City roadways, and other City maintained areas, these agreements can
facilitate an expedient reaction and resolution to advise conditions without jeopardizing administrative
requirements. It is important to understand that the not to exceed $100,000.00 amount does not
necessarily mean it will be spent but rather is a ceiling to operate below on an as needed basis.
r:lagdrp!\2003\0624\Annual 03-04 Main! Agreements.AGN/ajp
Although some jobs may be better accomplished by one contractor because of equipment availability,
timing issues and job location, every effort will be made by staff to distribute the work load evenly
between the these contractors. The contractor will be responsible for providing a work proposal for
each job, which must be approved by staff before any work is started.
Staff mailed letters to twelve (12) contractors in the local area that could meet the described minor
maintenance and construction needs. The letters requested time and material pricing for both labor and
equipment rates. It also included holiday and overnight rates. Seven (7) out of the twelve (12)
contractors responded and provided competitive labor and equipment rates as seen in Exhibit "B" of
each agreement. Review of these rates has determined they are consistent with current prevailing
wages and current hourly equipment rates previously paid by the City. The contractors listed below
responded to the request for time and material rates and are recommended for not to exceed
$100,000.00 agreements for a one (1) year term.
Companv
Walter K. Becker (dba Becker Engineering)
Cajer Equipment Rental
Imperial Paving Company, Inc.
Monteleone Contractors, Inc.
Murrieta Development Company
Rene's Commercial Management
Toran Development & Construction
Amount not to Exceed
Term
$100,000.00
$100,000.00
$100,000.00
$100,000.00
$100,000.00
$100,000.00
$100,000.00
1 year
1 year
1 Year
1 year
1 year
1 year
1 year
FISCAL IMPACT: Adequate funds are available in the Fiscal Year 2003-2004 Public Work's,
Maintenance Division Operating Budgetfor; Drainage Facility Maintenance Account No. 001-164-601-
5401; Routine Street Maintenance Account No. 001-164-601-5402; Old Town Repair & Maintenance
Account No. 001-164-603-5212; and Other Outside Services Account No. 001-164-603-5250.
ATTACHMENT:
1. Contractor Mailing List
2. Contracts
2
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Contractor Mailing List
FISCAL YEAR 2003-2004
1. Becker Engineering
P.O. Box 890365
Temecula, CA 92589-0365
2. Del Rio Enterprise
42181 Avenida Alvarado
Temecula, CA 92590
3. Cajer Equipment Rental
P.O. Box 585
Temecula, CA 92593
4. Imperial Paving Co., Inc.
13555 E. Imperial Highway
Whittier, CA 90605
5. Minnesang Pest Specialists
27636 Ynez Rd., L-7, #101
Temecula, CA 92591
6. Monteleone Contractors, Inc.
39054 Camino Hermosa
Murrieta, CA 92563
7. Murrieta Development
42540 Rio Nedo
Temecula, CA 92590-3727
8. N P G Corporation (Nelson Paving & Sealing)
P.O. Box 1515
Perris, CA 92575
g. Pacific West Construction
637 N. Emerald Dr.
Vista, CA 92803
10. Rene's Commercial Management
1002 Luna Way
San Jacinto, CA 92583
11. Strong's Painting
312965 Saddle back Lane
Menifee, CA 92584
12. Toran Development & Construction
37110 Mesa Rd
Temecula, CA 92592-8633
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CITY OF TEMECULA
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
CITYWIDE ROUTINE MAINTENANCE
Tms CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by and
between the City ofTemecula, ("City") and BECKER ENGINEERING ("Contractor"). In consideration of
the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance and/or construction upon real and personal property of the City ofTemecula. Work
will include emergency repairs, emergency maintenance, maintenance work, and/or minor construction work.
The work under this Agreement is non-exclusive and City reserves the right to hire other contractors to perfonn
similar work. The procedure for assigning work is set forth in Exhibit "A", Scope of Work, attached hereto
and incorporated herein as though set forth in full. The Director of Public Works ("Director"), or his designee,
is authorized to approve the work in accordance with the procedures of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and shall
tenninate as of June 30, 2004 unless sooner tenninated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work perfonned on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures set
forth in Exhibit "A". The maximum amount of payment under this Agreement shall be One Hundred
Thousand Dollars and No Cents ($100,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services perfonned. Invoices shall
be submitted between the first and fifteenth day of each month for services provided during the previous
month. The invoice shall describe the approved work assignment under which the work has been perfonned.
Payment shall be made within thirty (30) days of receipt ofthe invoice as to all non-disputed fees. If the City
disputes any of the Contractor's fees, it shall give written notice to the Contractor within thirty (30) days of
receipt of the invoice of the disputed fees on the invoice.
4. PERFORMANCE. Contractor shall at all times faithfully, competently and to the best of
his or her ability, experience, and talent, perfonn 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. Contractor shall cause
a full time experienced Superintendent to be present on the site during all construction and to oversee and
supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished
and work perfonned and completed subject to the approval of the City or its authorized representatives, and the
quality of the workmanship shall be guaranteed for one year from date of acceptance.
6. WAIVER OF CLAIMS. On or before making fmal request for payment under Paragraph 2.,
above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out of this
contract; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against the
City under or arising out of this Contract except those previously made in writing and request for payment.
R:\maintain\workorders\Becker 03-04 Agrmt\master const agnnt
Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for
payment.
7. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates are
available from the California Department Industrial Relations' Internet web site http://www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates
as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6,
and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor shall forfeit to
the District, as a penalty, the sum of$25 .00 for each calendar day, or portion thereof, for each laborer, worker,
or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by
him or by any subcontractor under him, in violation of the provisions of the Contract.
8. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or tenninate
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 othetwise. 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 tenninated 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 3.
9. 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, the
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 City 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 (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.
10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Contractor's negligent or wrongful acts or omissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
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11. LIABILITY INSURANCE. 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 Scone of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California and
Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this projectJIocation or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses and related
investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the 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, its 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, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by the
City, its officers, officials, employees or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The 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 clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
e. Accentability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g, Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and 1 will comply with such
provisions before commencing the performance of the work of this Contract."
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the City nor any
of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for the City. The City shall not be liable for compensation or inderrmification to Contractor for
injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSffiILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
4
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examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the City
for purposes ofletting this Contract out to proposal will be accepted as an excuse for any failure or omission on
the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any, to
be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been
filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereofas
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and
audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and
acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made
within a reasonable time after completion ofthe Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or
handicap.
22. WRITTEN NOTICE. Any notices which either party may desire to give to the other party
under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Becker Engineering
P,O. Box 890365
Temecula, California 92589-0365
(909) 731-3991
5
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23. 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 ofTemecula,
24. 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.
25. 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 ofthis Agreement. Any litigation concerning this Agreement shall take place in
the municipal, superior, or federal district court with jurisdiction over the City ofTemecula. In the event of
litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROIDBITED INTEREST. No member, officer, or employee of the City ofTemecula or of
a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during
hislher tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board member, officer
or employee of the City of Temecula has any interest, whether contractual, non-contractual, fmancial or
otherwise, in this transaction, or in the business of the contracting party other than the City ofTemecula, and
that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest would not be
considered a conflict of interest under Article 4 )commencing with Section 1090) or Article 4.6 (commencing
with Section 1220) of Division 4 of Title I of the Government Code of the State of California.
27. 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.
28. AUTHORITY TO EXECUTE TIDS 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.
6
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year fIrst above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Fonn:
Peter M. Thorson, City Attorney
CONTRACTOR
BECKER ENGINEERING
P.O. Box 890365
Temecula, CA 92589-0365
(909) 731-3991
Walter K. Becker, Owner
7
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EXHIBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
cons1ruction upon real and personal property of the City ofTemecula. Work will include emergency repairs,
emergency maintenance, maintenance work, and/or minor cons1ruction work. The procedure for assigning
work is set forth as follows:
1. Director of Public Works ("Director") or his designee shall submit to Contractor a written
"Request for Work". The Request for Work shall include a description of the work to be completed, the time
for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost of
material which will be required and the estimated cost ofIabor and equipment necessary to complete the work
in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work orally to
the Contractor. As soon as practical following the emergency, the Contractor and Director shall in good faith
confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
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EXHIBIT B
LABOR AND EQUIPMENT RATES
9
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BECKER
.ENGliNEERliNG<
RECEIVED
MAY 2 7 Z003
CA License # 683396-A
P.o. Box 890365 .
CllY OF TEMECULA
I TMENT
(909) 712-2341
DEMOLITIONS
GRADING
.
PAVING
.
CONCRETE .
OWNERd CO~TRACTOR PHONE: I DATE:
IT OF TEMECULA (909)694-6411 05-15-03
NAME: LEGAL JOB LOCATION:
BRAD BURON
STREET: STREET:
43200 BUSINESS PARK DR
CITY: TEMECULA I STATE: CA CITY:
We propose to furnish all equipment and perform all labor necessary to complete the following:
AS PER YOUR LETTER OF REQUEST, DATED APRIL 15, 2003. PLEASE
REVIEW PAGE TWO.
This contract does not include any damage or repairs to underground facilities not visible from the surface or otherwise
designated by owner I contractor and stated in this agreement. Any extra work or delays will result in contract reverting to Time
& Material.
All of the above work to be completed in a substantial and workmanlike manner according to standard practices for the sum
of DOLLARS ($ )
Terms of Payment:
Any alteration or deviation from the above specifications involving extra cost of materials or labor will only be executed upon
written orders for same, and will become an extra charge over the sum mentioned in this contract. All agreements must be made
in writing.
It is further understood and agreed that Workmen's Compensation and Public Liability Insurance will be provided, however,
coverage applies only to work actually performed by Becker Engineering in accordance with terms and conditions of this
contract. Certificates ofInsurance will be furnished upon request.
TIll''''O'OOAL'' VAL~~'ffiOMTIffiABOVEDATh
Authonzed Signature: ~
,
I ACCEPTANCE OF PROPOSAL I
PROPOSAL & CONTRACT
BECKER
.ENGliNEERliNG<
CA License # 683396-A
P.O. Box 890365. Temecula, CA 92589-0365
(909) 731-3991
CONCRETE . DEMOLITIONS
GRADING .
PAVING
.
PROPOSAL & CONTRACT-
PAGE TWO
LABOR RATES
S..,.T.
$ 61.85
$ 57.25
$ 47.45
SUPERINTENDENT W/1 TON TRUCK
FOREMAN
W/3/4
TRUCK
GENERAL LABORER
O.T.
$92.25
$83.50
$68.05
NOTE: THESE LABOR RATES REFLECT LATEST RAISES IN P.W.SCALE.
BARE EQUIPMENT
545 EXCAVATOR
450 DOZER
SKIPLOADER
310 BACKHOE
763 BOBCAT
763 BOBCAT W/ BREAKER
S-250 BOBCAT
S-250 BOBCAT W/BREAKER
BOBTAIL DUMP
1T03 TON ROLLER
3T05 TON ROLLER
VIBRATORY PLATE
WACKER TAMP
WATER TRUCK
AREA MOVE INS
$ 51.50
$ 51.50
$ 39.65
$ 51.50
$ 43.80
$ 67.50
$ 51.50
$ 75.20
$ 51.50
$ 26.80
$ 39.65
$ 21.65
$ 21.65
$ 56.65
$ 87.55
ALL MATEIALS AND RATES AT A.P.W. STANDARD BOOK RATES.
P.H.
I
CITY OF TEMECULA
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
CITYWIDE ROUTINE MAINTENANCE
TIDS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by and
between the City of Temecula, ("City") and CAJER EQUIPMENT RENTAL ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance and/or construction upon real and personal property of the City ofTemecula. Work
will include emergency repairs, emergency maintenance, maintenance work, and/or minor construction work.
The work under this Agreement is non-exclusive and City reserves the right to hire other contractors to perform
similar work. The procedure for assigning work is set forth in Exhibit "A", Scope of Work, attached hereto
and incorporated herein as though set forth in full. The Director of Public Works ("Director"), or his designee,
is authorized to approve the work in accordance with the procedures of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1,2003 and shall
terminate as of June 30,2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "BOO, Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures set
forth in Exhibit "A". The maximum amount of payment under this Agreement shall be One Hundred
Thousand Dollars and No Cents ($100,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices shall
be submitted between the first and fifteenth day of each month for services provided during the previous
month. The invoice shall describe the approved work assignment under which the work has been performed.
Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed fees. If the City
disputes any of the Contractor's fees, it shall give written notice to the Contractor within thirty (30) days of
receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor shall cause
a full time experienced Superintendent to be present on the site during all construction and to oversee and
supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished
and work performed and completed subject to the approval of the City or its authorized representatives, and the
quality of the workmanship shall be guaranteed for one year from date of acceptance.
6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph 2.,
above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out of this
contract; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against the
City under or arising out of this Contract except those previously made in writing and request for payment.
R:\maintain\workorders\Cajer Equip 03-04 Agrmt\master const agrmt
Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for
payment.
7. PREY AILING WAGES. Pursuant to the provisions of Section 1773 ofthe Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates are
available from the California Department Industrial Relations' Internet web site http://www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates
as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6,
and 1813 ofthe Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor shall forfeit to
the District, as a penalty, the sum of$25.00 for each calendar day, or portion thereof, for each laborer, worker,
or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by
him or by any subcontractor under him, in violation of the provisions of the Contract.
8. 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 3.
9. 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, the
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 City 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 ofthe default. The Contractor shall have (10) days after service upon it of said notice in which to cure
the default by rendering a satisfactory performance. In the event that the 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.
10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Contractor's negligent or wrongful acts or omissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
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11. LIABILITY INSURANCE. 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 Scone of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 000 I).
(2) Insurance Services Office form number CA 000 I (Ed. 1/87) covering
Automobile Liability, code I (any auto).
(3) Worker's Compensation insurance as required by the State of Cali fomi a and
Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
(I) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this projectJIocation or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses and related
investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the 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, its 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, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by the
City, its officers, officials, employees or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The 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 clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
e. Acceotabilitv of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract. n
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 tirnes be under Contractor's exclusive direction and control. Neither the City nor any
of its officers, employees or agents 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 oind the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for the City. The City shall not be liable for compensation or indemnification to Contractor for
injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSffiILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
4
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examinations and investigations, and no plea of reliance on initial investigations orreports prepared by the City
for purposes ofletting this Contract out to proposal will be accepted as an excuse for any failure or omission on
the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any, to
be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been
filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and
audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respectto locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without lirnitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and
acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made
within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or
handicap.
22. WRITTEN NOTICE. Any notices which either party may des~e to give to the other party
under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Cajer Equipment Rental
P.O. Box 585
Temecula, California 92593
(909) 538-6542
5
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23. 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 ofTemecula.
24. 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.
25. 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 jurisdiction over the City of Temecula. In the event of
litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROIDBITED INTEREST. No member, officer, or employee of the City ofTemecula or of
a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during
hislher tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board member, officer
or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, or in the business of the contracting party other than the City ofTemecula, and
that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest would not be
considered a conflict of interest under Article 4 )commencing with Section 1090) or Article 4.6 (commencing
with Section 1220) of Division 4 of Title I of the Government Code of the State of California.
27. 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.
28. AUTIlORITY TO EXECUTE TIDS 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.
6
R:\maintain\workorders\Cajer Equip 03-04 Agnnt\master const agrmt
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year fIrst above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
CAJER EQUIPMENT RENTAL
P.O. Box 585
Temecula, CA 92593
(909) 538-6542
Michael Nicholas Monteleone, Owner
7
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EXHIBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City ofTemecula. Work will include emergency repairs,
emergency maintenance, maintenance work, and/or minor construction work. The procedure for assigning
work is set forth as follows:
1. Director of Public Works ("Director") or his designee shall submit to Contractor a written
"Request for Work". The Request for Work shall include a description of the work to be completed, the time
for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost of
material which will be required and the estimated cost oflabor and equipment necessary to complete the work
in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work orally to
the Contractor. As soon as practical following the emergency, the Contractor and Director shall in good faith
confrrm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
8
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EXIllBIT B
LABOR AND EQUIPMENT RATES
9
R:\maintain\workorders\Cajer Equip 03..()4 Agnnt\master const agnnt
CAJER EQUIPMENT, INC.
P.O. BOX 585
TEMECULA, CA 92593
Time and equipment rate for 2003-2004
Equipment Rate per hr Saturday/+ 8hrs
regular rate *per hour overtime
450 dozer $10500
D6LGP $150.00
D6H $115.00
824 dozer $160.00
D8k dozer $155.00
D8N dozer $155.00
D8R dozer $150.00
D9L dozer $225.00
650 komatsu $280.00
400 excavator $183.00
300 excavator $150.00
220 excavator $125.00
446 backhoe $1010
30 Mfskip/mower $77.50
450 C loader $145.00
950 loader $130.00
977 loader $130.00
973 track loader $140.00
963 track loader $130.00
12 G motor grader $115.00
623 scraper $150.00
860 scraper $140.00
657 pnsh pnll $240.00
637 E pnsh pnll. $200.00
10 wheel dump/pup $80.00
Hi-side semi $85.00
4,000 gal w/truck $75.00
Lowbed truck $90.00
Foreman $66.00
Pick-up $30.00
Grade checker $54.00
Laborer $46.00
$120.50
$165.50
$130.50
$175.50
$170.50
$170.50
$165.50
$240.50
$295.50
$198.50
$165.50
$140.50
$116.50
$93.00
$160.50
$145.50
$145.50
$155.50
$145.50
$130.50
$165.50
$155.50
$255.50
$215.50
$95.50
$100.50
$90.50
$105.50
$81.50
$45.50
$69.50
$61.50
PHONE: (909) S38-6S42
FAX: (909) 695-2525
Holiday/Sunday
overtime rate
$137.00
$181.00
$146.00
$181.00
$186.00
$186.00
$181.00
$256.00
$311.00
$214.00
$181.00
$156.00
$132.00
$108.50
$176.00
$161.00
$161.00
$171.00
$161.00
$146.00
$181.00
$171.00
$271.00
$231.00
$111.00
$116.00
$106.00
$121.00
$97.00
$61.00
$85.00
$77.00
*Note- Overtime wages begin after 3:00P.M. with a 6:30 A.M. starting time.
Rate used beyond 8 hours on weekdays and all hours on Saturday.
*Note- Any City work will be under 2003 Prevailing Wage Rates.
Mike Monteleone- Oflice/Cell:(909) 538-6542 Fax: (909) 695-2525
ACORD.
CERTIFICATE OF LIABILITY INSURANCE
OPID A
CAJIE-l 06 03
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
03
PRODUCER
Strachota Insurance Agency Inc
California License #0249673
43500 Ridge Park Drive #203
Temecula CA 92590
Phone:909-676-2229 Fax: 909-676-7391
INSURED
INSURERS AFFORDING COVERAGE
NAIC#
Cajier Equipment &
JR Company
P.O. Box 585
Temecula, CA 92593
COVERAGES
INSURER A:
INSURER B:
INSURER c:
INSURER 0:
INSURER E:
Evanston Insurance Com an
Mereu Casualt Com an
11908
THE POUCIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE liMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
LTR NSR TYPE OF INSURANCE POLICY NUMBER t'D~&.I~1MMlDD1YYI- DATE MMIDDJYY\" LIMITS
GENERAL LIABILITY EACH OCCURRENCE 5 1000000
-
A X X COMMERCIAL GENERAL LIABILITY CL04l702093 03/05/03 03/05/04 PREMISES Ea occurence) 5100000
I CLAIMS MAD=: [i] OCCUR , M~E_~!.~~~-=-~~.~) 51000
- PERSONAL &ADV INJURY 5 1000000
- GENERAL AGGREGATE 52000000
GEN'l AGGREGATE liMIT APPLIES PER: PRODUCTS-COM~OPAGG 51000000
I ,nPRO' n
POLICY JECT lOC
AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT
- 5 1000000
B ANY AUTO AC11058l46 03/26/03 03/26/04 (Eaaccidenl)
-
All OWNED AUTOS BODilY INJURY
- 5
~ SCHEDULED AUTOS (Per person)
~ HIRED AUTOS BODILY INJURY
5
~ NON-OWNED AUTOS (Per accident)
- PROPERTY DAMAGE 5
(Per accident)
GARAGE LIABILITY AUTO ONLY- EA ACCIDENT 5
=1 ANY AUTO OTHER THAN EA ACC 5
AUTO ONLY: AGG 5
EXCESSfUMBRELLA LIABILITY EACH OCCURRENCE 5
~ OCCUR D CLAIMS MADE AGGREGATE 5
5
=1 ~EDUCTIBLE 5
RETENTION 5 5
WORKERS COMPENSATION AND I T~~/(I~:f'S I I U E~'
EMPLOYERS' LIABILITY
ANY PROPRIETORIPARTNERlEXECUTIVE E.l. EACH ACCIDENT 5
OFFICER/MEMBER EXCLUDED? E,L. DISEASE - EA EMPLOYEE S
mcl~~P~'OVIS1oNS below E.l. DISEASE. POLICY LIMIT 5
OTHER
DESCRtPTION OF OPERATIONS I lOCATIONS J VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT f SPECIAL PROVISIONS
Certificate holder is named as additional insured regarding general
liability per endorsement to be issued by company.
*Except nonpay then 10 days
CITYTEM
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30. DAYS WRITTEN
NonCE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. BUT FAILURE TO DO SO SHALL
IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
REPRESENTATIVES.
SENT
@ACORD CORPORATION 1988
CERTIFICATE HOLDER
City Of Temecula
Public Works
Maintenance Division
P.O. Box 9033
Temecula CA 92580-9033
ACORD 25 (2001/08)
SK
.STATE
'. COMPENSATION '
IN SUI'lAN,CE
,FUND
P.O. B9~ 807, SAN FRANCISCO,CA ~'~ 0.1-91397
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CITY OF TEMECULA
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
CITYWIDE ROUTINE MAINTENANCE
TIDS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by and
between the City of Temecula, ("City") and IMPERIAL PAVING CO., INC. ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance and/or construction upon real and personal property of the City ofTemecula. Work
will include emergency repairs, emergency maintenance, maintenance work, and/or minor construction work.
The work under this Agreement is non-exclusive and City reserves the right to hire other contractors to perform
similar work. The procedure for assigning work is set forth in Exhibit "A", Scope of Work, attached hereto
and incorporated herein as though set forth in full. The Director of Public Works ("Director"), or his designee,
is authorized to approve the work in accordance with the procedures of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and shall
terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures set
forth in Exhibit "A". The maximum amount of payment under this Agreement shall be One Hundred
Thousand DoUars and No Cents ($100,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices shall
be submitted between the first and fifteenth day of each month for services provided during the previous
month. The invoice shall describe the approved work assignment under which the work has been performed.
Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed fees. If the City
disputes any of the Contractor's fees, it shall give written notice to the Contractor within thirty (30) days of
receipt of the invoice of the disputed fees on the invoice.
4. PERFORMANCE. Contractor shall at all times faithfully, cornpetently and to the best of
his or her ability, experience, and talent, perform all tasks described herein. Contractor shall employ, at a
minimurn, generally accepted standards and practices utilized by persons engaged in providing similar services
as are required of Contractor hereunder in meeting its obligations Wlderthis Agreement. Contractor shall cause
a full time experienced Superintendent to be present on the site during all construction and to oversee and
supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished
and work performed and completed subj ect to the approval of the City or its authorized representatives, and the
quality of the workmanship shall be guaranteed for one year from date of acceptance.
6. WAIVER OF CLAIMS. On or before making final request for payment Wlder Paragraph 2.,
above, Contractor shall submit to the City, in writing, all claims for compensation Wlder or arising out of this
contract; the acceptance by Contractor of the [mal payment shall constitute a waiver of all claims against the
City Wlder or arising out of this Contract except those previously made in writing and request for payment.
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Contractor shall be required to execute an affidavit, release and indemnifY agreement with each claim for
payment.
7. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates
are.available from the California Department Industrial Relations' Internet web site http:\\www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates
as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6,
and 1813 ofthe Labor Code. Pursuant to the provisions of 177 5 ofthe Labor Code, Contractor shall forfeit to
the District, as a penalty, the sum of$25.00 for each calendar day, or portion thereof, for each laborer, worker,
or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by
him or by any subcontractor under him, in violation of the provisions of the Contract.
8. 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 ofthis 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 3.
9. 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, the
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 City 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 (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.
10. INDEMNIFICATION. The Contractor agrees to defend, indemnity, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Contractor's negligent or wrongful acts or omissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
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11. LIABILITY INSURANCE. 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 Scone of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 000 I).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code I (any auto).
(3) Worker's Compensation insurance as required by the State of California and
Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this projectJIocation or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses and related
investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(I) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the 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, its 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, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by the
City, its officers, officials, employees or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The 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 clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. Contractor shall furnish the City with original
endorsernents 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 District 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 endorsernents effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract."
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the City nor any
of its officers, employees or agents 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 the City in any manner. No employee benefits shall be available to Contractor in
connection with the performance ofthis Agreement. Except for the fees paid to Contractor as provided in the
Agreement, the City shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for the City. The City shall not be liable for compensation or indemnification to Contractor for
injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
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examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the City
for purposes ofletting this Contract outto proposal will be accepted as an excuse for any failure or omission on
the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any, to
be set forth in an affidavit covering disputed claims or items in connection with Ii Stop Notice which has been
filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and
audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to fmal inspection and
acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made
within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or
handicap.
22. WRITTEN NOTICE. Any notices which either party may desire to give to the other party
under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Imperial Paving Co., Inc.
13555 E. Imperial Highway
Whittier, CA 90605
(562) 944-0975
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23. 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 ofTemecula.
24. 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.
25. 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 jurisdiction over the City of Temecula. In the event of
litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROIDBITED INTEREST. No member, officer, or employee of the City ofTemecula or of
a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during
his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board member, officer
or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula, and
that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest would not be
considered a conflict of interest under Article 4 )commencing with Section 1090) or Article 4.6 (commencing
with Section 1220) of Division 4 of Title I of the Government Code of the State of California.
27. 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.
28. AUTHORITY TO EXECUTE TIDS 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
IMPERIAL PAVING CO., INe.
13555 E. Imperial Highway
Whittier, CA 90605
(562) 523-0975
Fritz Coy, SecretaryfTreasure
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EXHIBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City of Temecula. Work will include emergency repairs,
emergency maintenance, maintenance work, and/or minor construction work. The procedure for assigning
work is set forth as follows:
1. Director of Public Works ("Director") or his designee shall submit to Contractor a written
"Request for Work". The Request for Work shall include a description of the work to be completed, the time
for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost of
material which will be required and the estimated cost oflabor and equipment necessary to complete the work
in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work orally to
the Contractor. As soon as practical following the emergency, the Contractor and Director shall in good faith
confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
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EXHIBIT B
LABOR AND EQUIPMENT RATES
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RECEIVED
MAY 2 7 Z003
CITY OF lEMECULA
P,O, BOX 9033
lEMECULA, CA 92589-9033
RE: TIME AND MAlERIAL SHEET
CllY OF TEMECULA
ENGINEERING DEPARTMENT
ATfENTION: BradBuron
LABOR BREAKDOWN
ALL LABOR _ u _ _ _ _ u _ _ _ _ _ _ _ _ _ _ - - u _ u - - - - - u - - - - - - - - - - - $ 45,00 PER HOUR
OVERTIME 1 Yz TIME (AFTER 8HRS/SATURDA YS) - - - - - - - - - - - - - - -$ 67.50 PER HOUR
DOUBLETIME 2 TIME (SUNDAYS/HOLIDAYS) - - - - - - - - - - - - - - - - - -$ 90,00 PER HOUR
EOUIPMENT BREAKDOWN (DOES NOT INCLUDE LABOR)
FLATBED TRUCK WITH COMPRESSOR MOUNT - - - - - - - - - - - - - - - - $ 325,00 PER DAY
BOB TAIL TRUCK 9 -11 YARDS u_ - - u u U - u _uu - u - u - u -$ 315,00 PER DAY
CONCRElEFLATBED TRUCK - - - - --- - - - - - - - - - - -- - - - - - _u_ - -$ 300,OOPERDAY
DUMP TRUCK & PUP TRAILER - - - - - - - - - - - - u - - -- - - -- - - - u - -$ 390,00 PER DAY
AIR COMPRESSOR _ - - - - - u_ u _ _ _ __ _ _ _ _ - - - __ _u - - u - - - u - $ 150,00 PER DAY
WAlER TRUCK- _ _ _ _ _ u_ _ _ _ - - u u _ - u_ _ - - - - u - - - - - u_ - - -$ 275,OOPERDAY
FLATBED TRUCK WITH 3-5 TON ROLLER COMBO (MINIMUM) - - - - $ 505,00 PER DAY
DUMP TRUCK WITH SKIPLOADER & TRAILER COMBO - - - - - - - - - $ 505,00 PER DAY
10-12 TON ROLLER INCLUDING TRAILER - - uu - - - - u - - - u__ - $ 250,00 PER DAY
3-5 TON ROLLER INCLUDING TRAILER - - - - - - - - - - - - - - - - - - - - - - $ 245,00 PER DAY
BERMMAClUNE MlNIMUM CHARGE - u - - - - - - - - - - - - u - - - - - - $ 150.00 PER DAY
BOBCAT WITH BUCKET - - - - - - - - --- - - - _u_ - - - -- - - u - uU - $ 500,OOPERDAY
BOBCAT WITH GRlNDER- - __u - - - - - - - - - - ---- - - - u_ - - - - - - $ 550,OOPERDAY
ARROW BOARD WITH TRUCK - - - - u_ - - - - _u - - - - - u_ - - - - u -$ 250,00 PER DAY
STANDARD SET (COMMON REPAIR CREw)
FOUR MAN CREW
SKIPLOADER
DUMPTRUCK
3-5 TON ROLLER
FLATBED WITH COMPRESSOR & TOOLS - - - - - - - - - - - - - - - - - - - -$ 2,600.00 PER DAY
LESS THAN 8 HRS (2HRMINIMUM) - u - - - - - - - u - - - - - - - - - u_ $ 400.00 PER HOUR
MATERIALS
ASPHALT--------------------------------------------$
ASPHALT PLANT OPENING ON SATURDAYS - - - - - - - - - - - -. - - - $
BASE ROCK CLASS II u - - - - - - - - __ - - - - u - - - - - u - - - - - - u - -$
TACKMAlERIAL __ - u - u_ _ _ _ - - - - __ - - - - - u_ - __ - - u - - - u $
CONCRElE u - - - u _ _ - - - - - u - - - - - - - - - - - - - - u - - - u - - u - $
CONCRElEAFTER4 YARDS - _u __ - uU - - u __ U - u _u -- - - $
NOlE: ABOVE PRICES SUBJECT TO PUC CHANGE.
20% MARK UP ON SUBCONTRACTORS,
45,00 PER TON
1,000,00
12.50 PER TON
1.60 PER GAL
425.00 MIN. LOAD
75,00 PER YARD
NOlE: IMPERIAL PAVING PROVIDES THE FOLLOWING SERVICES:
EXCAVATION, GRADING, PAVING, CONCRElE, SEAL COATING AND
STRIPING,
(562) 944-0975 . (714) 523-4492 . (800) 634-3923 · Fax (562) 944-0984
13555 E. Imperial Hwy., Whittier, California 90605
ACQRDN CERTIFICATE OF LIABILITY INSURANCE ~;/{;n:.1
'ODUCER (949)157-4500 FAX (949)157-4100 ntlS CERTIFICATE IS ISSUED /IS A MATTER OF INFORMATION
i~l i R' k M II I S i ONLY AND CONFERS NO RIGHTS UPON ntE CERTIFICATE
I " enn um , s anagement nsurance erv ces HOLDER. ntlS CERTIFICATE DOES NOT AMEND, EXTEND OR
License , OC13480 ALTER ntE COVERAGE AFFORDED BY ntE POLICIES BELOW.
5530 Trabuco Road
[rvine, CA 92620
INSURERS AFFORDING COVERAGE
SURED
INSURER A:
INSURER B:
INSURER c:
INSURER 0:
INSURER E:
Peerless Insurance Company/BlackWhite
State Compensation Insurance Fund
Imperial Paving Company Inc.
Alpha Asphalt II COatings Company, Inc.
13555 E. Imperial Hwy.
Wh ttier, CA 90605
OVERAGES
THE POLICIES OF INSURANCE L1STEO BELOW HAVE BEEN ISSUEO TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INOICATED, NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER OOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUEO OR
MAY PERTAIN. THE INSURANCE AFFOROEO BY THE POLICIES OESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REOUCED BY PAlD CLAIMS,
i: TYPE OF INSURANCE POLICY NUMBER P8Al{.iY;~f.~8~ P8k!fJ :b~~N LIMITS
~NERAL LIABIUTY EACH OCCURRENCE S 1,000.00(
X COMMERCIAl GENERAL lIABILITY FIRE DAMAGE (Any one fire) S 100 OO(
I CLAIMS MADE [!] OCCUR ~P9491696 07/01/2002 07/01/2003 MED EXP (Anyone person) S 5.00(
~ PERSONAl & ADV INJURY S 1 000,00(
GENERAL AGGREGATE S 2 ,000 , OO(
~.~ AGG~nE ~~~ APrlSIPER: PRODUCTS. COMPIOP AGG S 2,Ooo,OO(
POLICY JEer lOG
~OM08ILE UABlUTY COMBINED SINGLE LIMIT S 1,000 000
~y AUTO (Ea accident)
X ALL OWNED AUTOS BOOlt Y INJURY
- CBP9491696 07/01/2002 07/01/2003 (Per person) S
l X SCHEDULED AUTOS
HIRED AUTOS BOOlt Y INJURY
X (Per accident) S
NON-QWNED AUTOS
-
PROPERTY DAMAGE S
(Per accident)
==fGE UABILITY AUTO ONt y. EA ACCIDENT S
ANY AUTO OTHER THAN EA ACe s
AUTO ONLY: AGG S
EXCESS LIABILITY EACH OCCURRENCE S
::J-OCCUR D CLAIMS MADE AGGREGATE S
S
~ ~EDUCT'BLE S
RETENTION S S
WORKERS COMPENSATION AND X I To'i\-i"'Mrrs I 10J~
EMPLOYERS' lIABILITY E.L. EACH ACCIDENT S 1.000,OO~
I J.700103-02 07/01/2002 07/01/2003 E.L. DISEASE - EA EMPLOYEE $ I,Ooo,OO~
E.l. DISEASE - POLICY LIMIT S I,OOO.OO~
OTHER
,
:SCRJfiON OF OPERATId';NSlLOCATlONSlVEHICLESlEXCLUSIOaaADDED BY fNDORSEMEdSPECIAL PRO\nSIONS Liability per endorsement
,rt, icate Hal er et al are named A itiona Insure as respects General
:a; 601 (10/98)
. 43200 Business Park Drive. Temecula, CA 92590
..
,D-day notice of cancellation in the event of non-payment of prenrium.
ERTlFICA TE HOLDER I I ADDmONAL INSURED; INSURER LETTER; CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY Will ENDEAVOR TO MAIL
*30 DAYS WRITTEN NonCE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT.
City of Temecula SlIT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBUGATlON OR lIABIlITY
43200 Business Park Drive OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REP :rIVES,
Temecula. CA 92590 AUTHORIZEDREPRESENTATlVE ml,1 fJt'i UCL.Lt1v
Darlene Owens I~ /fLV
,CORD 25-5 (7/97)
@ACORDCORPORATION 1988
City of Temecula
Certificate issued to City of Temecula
Millennium Risk Management & Insurance Services
07/15/2002
Policy #CBP9491696
07/15/2002
Additional Insured:
The District, its officers, officials, employees and volunteers
.
Fomilng a part of
Policy Number:
Coverage Is Provided In
Named Insured: Agent:
Imperial Paving Company, Inc. Millennium Corporate Solutions, Inc.
Alpha Asphalt & Coatings Company, Inc.
Agent Code:
Agent Phone:
1ll1S ENDORSEMENT CHANGES lllE POLICY. PLEASE READ IT CAREFULLY.
. _~QDI1l9NAL INSURED. OWNERS, LESSEES OR C()~~'!A~'T()RS (FORM B)
This endorSement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
WHO IS AN INSURED (Section II) is amended to Include as an insured the person or organization shown in the Schedule, but only with respect to iabiity
arising out of 'yQur work" lor that insured by or for you.
The coverage afforded the additional insured does not apply to any project on which "your worI(' was CllIl1Jlletsd prior to 1he elIective date of Ihis
endorsemenl
SCHEDULE
City of Temecula, The District, its officers, officials, employees and volunteers
43200 Business Park Drive
Temecula, CA 92590
RE: 43200 Business Park Drive, Temecula, CA 92590
GECG 601 (10/98)
Includes copyrighted maleriaI of Instnan<:e Serlices, Inc., 1992 with lis penntssion
CITY OF TEMECULA
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
CITYWIDE ROUTINE MAINTENANCE
TIDS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by and
between the City ofTemecula, ("City") and MONTELEONE CONTRACTORS, INC. ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance and/or construction upon real and personal property of the City ofTemecula. Work
will include emergency repairs, emergency maintenance, maintenance work, and/or minor construction work.
The work under this Agreement is non-exclusive and City reserves the right to hire other contractors to perform
similar work. The procedure for assigning work is set forth in Exhibit "A", Scope of Work, attached hereto
and incorporated herein as though set forth in full. The Director of Public Works ("Director"), or his designee,
is authorized to approve the work in accordance with the procedures of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and shall
terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures set
forth in Exhibit "A". The maximum amount of payment under this Agreement shall be One Hundred
Thousand Dollars and No Cents ($100,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices shall
be submitted between the first and fifteenth day of each month for services provided during the previous
month. The invoice shall describe the approved work assigrunent under which the work has been performed.
Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed fees. If the City
disputes any of the Contractor's fees, it shall give written notice to the Contractor within thirty (30) days of
receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor shall cause
a full time experienced Superintendent to be present on the site during all construction and to oversee and
supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished
and work performed and completed subject to the approval of the City or its authorized representatives, and the
quality of the workmanship shall be guaranteed for one year from date of acceptance.
6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph 2.,
above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out of this
contract; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against the
City under or arising out of this Contract except those previously made in writing and request for payment.
R:\maintain\workorders\Monteleone 03-04 Agrmt\master canst agrmt
Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for
payment.
7. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates are
available from the Califomia Department Industrial Relations' Internet web site http://www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates
as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6,
and 1813 of the Labor Code. Pursuant to the provisions of 1775 ofthe Labor Code, Contractor shall forfeit to
the District, as a penalty, the sum of$25.00 for each calendar day, or portion thereof, for each laborer, worker,
or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by
him or by any subcontractor under him, in violation of the provisions of the Contract.
8. 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 3.
9. 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, the
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 City 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 (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.
10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Contractor's negligent or wrongful acts or omissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
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11. LIABILITY INSURANCE. 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 Scooe of Insurance. Coverage shall be at least as broad as:
(I) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 000 I).
(2) Insurance Services Office form number CA 000 I (Ed. 1/87) covering
Automobile Liability, code I (any auto).
(3) Worker's Compensation insurance as required by the State of California and
Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
(I) General Liability: $1,000,000 per occurrence for bodily injwy, personal
injwy 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 projectJIocation or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injwy and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses and related
investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the 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, its 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, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by the
City, its officers, officials, employees or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
3
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The 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 clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
e. Acceotability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:Vll, unless otherwise acceptable to the City.
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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract."
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the City nor any
of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for the City. The City shall not be liable for compensation or indemnification to Contractor for
injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSmILITIES, The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
4
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examinations and investigations, and no plea of reliance on initial investigations orreports prepared by the City
for purposes ofletting this Contract out to proposal will be accepted as an excuse for any failure or omission on
the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any, to
be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been
filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and
audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to fmal inspection and
acceptance notwithstanding any payments or other prior inspections. Such fmal inspection shall be made
within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or
handicap.
22. WRITTEN NOTICE. Any notices which either party may desire to give to the other party
under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Monteleone Contractors, Inc.
35245 Briggs Road
Murrieta, California 92563
(909) 538-6537
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23. ASSIGNMENT. The Contractor shall not assign the performance of this Agreement, nor any
part thereof, nor any monies due hereunder, without prior written consent ofthe City ofTemecula.
24. 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.
25. 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 jurisdiction over the City of Temecula. In the event of
litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROIDBITED INTEREST. No member, officer, or employee of the City ofTemecula or of
a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during
hislher tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board member, officer
or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, or in the business of the contracting party other than the City ofTemecula, and
that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest would not be
considered a conflict of interest under Article 4 )commencing with Section 1090) or Article 4.6 (commencing
with Section 1220) of Division 4 of Title I of the Govemment Code of the State of California.
27. 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.
28. AUTHORITY TO EXECUTE TIDS 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.
6
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
MONTELEONE CONTRACTORS INC.
35245 Briggs Rd.
Murrieta, CA 92563
(909) 538-6537
Ryan Monteleone
7
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EXHIBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City ofTemecula. Work will include emergency repairs,
emergency maintenance, maintenance work, and/or minor construction work. The procedure for assigning
work is set forth as follows:
1. Director of Public Works ("Director") or his designee shall submit to Contractor a WTitten
"Request for Work". The Request for Work shall include a description of the work to be completed, the time
for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost of
material which will be required and the estimated cost oflabor and equipment necessary to complete the work
in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work orally to
the Contractor. As soon as practical following the emergency, the Contractor and Director shall in good faith
confmn in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
8
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EXHIBIT B
LABOR AND EQUIPMENT RATES
9
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All1~.tSn D tJ: .~\) m~N
Monteleone Contractors
35245 Briggs Rd.
Murrieta, CA 92563
Phone: (909) 538-6537
Fax: (909) 695-2525
M________________________________________________________________________________________________________
Time and equipment rate for 2003-2004
Equipment Rate per hr Saturday/+ 8hrs
regular rate *per hour overtime
450 dozer
D6LGP
D6H
824 dozer
D8k dozer
D8N dozer
D8R dozer
D9L dozer
650 komatsu
400 excavator
300 excavator
220 excavator
446 backhoe
30 Mf skip/mower
450 C loader
950 loader
977 loader
973 track loader
963 track loader
12 G motor grader
623 scraper
860 scraper
657 push pull
637 E pnsh pull
10 wheel dump/pup
Hi-side semi
4,000 gal w/truck
Lowbed truck
Foreman
Pick-up
Grade checker
Laborer
$105.00
$150.00
$115.00
$160.00
$155.00
$155.00
$150.00
$225.00
$280.00
$183.00
$150.00
$125.00
$1010
$77.50
$145.00
$130.00
$130.00
$140.00
$130.00
$115.00
$150.00
$140.00
$240.00
$200.00
$80.00
$85.00
$75.00
$90.00
$66.00
$30.00
$54.00
$46.00
$120.50
$165.50
$130.50
$175.50
$170.50
$170.50
$165.50
$240.50
$295.50
$198.50
$165.50
$140.50
$116.50
$93.00
$160.50
$145.50
$145.50
$155.50
$145.50
$130.50
$165.50
$155.50
$255.50
$215.50
$95.50
$100.50
$90.50
$105.50
$81.50
$45.50
$69.50
$61.50
Holiday/Sunday
overtime rate
$137.00
$181.00
$146.00
$181.00
$186.00
$186.00
$181.00
$256.00
$311.00
$214.00
$181.00
$156.00
$132.00
$108.50
$176.00
$161.00
$161.00
$171.00
$161.00
$146.00
$181.00
$171.00
$271.00
$231.00
$111.00
$116.00
$106.00
$121.00
$97.00
$61.00
$85.00
$77.00
*Note- Overtime wages begin after 3:00P.M. with a 6:30 A.M. starting time.
Rate used beyond 8 hours on weekdays and aU hours on Saturday.
*Note- Any City work will be under 2003 Prevailing Wage Rates.
Ryan Monteleone Office! Cell (909) 538-6537 Fax: (909) 695-2525
CITY OF TEMECULA
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
CITYWIDE ROUTINE MAINTENANCE
TIDS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by and
between the City of Temecula, ("City") and MURRIETA DEVELOPMENT COMPANY, INC.
("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as
follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance and/or construction upon real and personal property of the City ofTemecula. Work
will include emergency repairs, emergency maintenance, maintenance work, and/or minor construction work.
The work under this Agreement is non-exclusive and City reserves the right to hire other contractors to perform
similar work. The procedure for assigning work is set forth in Exhibit "A", Scope of Work, attached hereto
and incorporated herein as though set forth in full. The Director of Public Works ("Director"), or his designee,
is authorized to approve the work in accordance with the procedures of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and shall
terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures set
forth in Exhibit "A". The maximum amount of payment under this Agreement shall be One Hundred
Thousand Dollars and No Cents ($100,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices rnonthly for actual services performed. Invoices shall
be submitted between the fIrst and fIfteenth day of each month for services provided during the previous
month. The invoice shall describe the approved work assignment under which the work has been performed.
Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed fees. If the City
disputes any of the Contractor's fees, it shall give written notice to the Contractor within thirty (30) days of
receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor shall cause
a full time experienced Superintendent to be present on the site during all construction and to oversee and
supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished
and work performed and completed subj ect to the approval of the City or its authorized representatives, and the
quality of the workmanship shall be guaranteed for one year from date of acceptance.
6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph 2.,
above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out of this
contract; the acceptance by Contractor of the [mal payment shall constitute a waiver of all claims against the
R:\maintain\workorders\Murrieta 03-04 Agrmt\master const agrmt
City under or arising out of this Contract except those previously made in writing and request for payment.
Contractor shall be required to execute an affidavit, release and indenmity agreement with each claim for
payment.
7. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates are
available from the California Department Industrial Relations' Internet web site http://www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates
as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6,
and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor shall forfeit to
the District, as a penalty, the sum of$25 .00 for each calendar day, or portion thereof, for each laborer, worker,
or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by
him or by any subcontractor under him, in violation of the provisions of the Contract.
8. 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 3.
9. 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, the
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 City 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 (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.
10. INDEMNIFICATION. The Contractor agrees to defend, indenmity, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Contract or's negligent or wrongful acts or omissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
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11. LIABILITY INSURANCE. 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:
(I) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 000 I).
(2) Insurance Services Office form number CA 000 I (Ed. 1/87) covering
Automobile Liability, code I (any auto).
(3) Worker's Compensation insurance as required by the State of Cali fomi a and
Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
(I) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses and related
investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the 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, its 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, its officers, officials,
employees and volunteers. Any insurance or self-insured maiotained by the
City, its officers, officials, employees or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The 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 clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:Vll, unless otherwise acceptable to the City.
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 the District before work commences. As an
altemative to the City's forms, the Contractor's insurer may provide complete, certified copies of all required
insurance policies, including endorsements effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and 1 will comply with such
provisions before commencing the performance of the work of this Contract."
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the City nor any
of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for the City. The City shall not be liable for compensation or indemnification to Contractor for
injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSffiILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Contractor to comply with this section.
IS. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
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examinations and investigations, and no plea of reliance on initial investigations orreports prepared by the City
for purposes ofletting this Contract out to proposal will be accepted as an excuse for any failure or omission on
the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any, to
be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been
filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and
audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respectto locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to fmal inspection and
acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made
within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or
handicap.
22. WRITTEN NOTICE. Any notices which either party may desire to give to the other party
under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Murrieta Development Co., Inc.
42540 Rio Nedo
Temecula, California 92590
(909) 719-1680
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23. 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 of Temecula.
24. 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.
25. 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 govem the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in
the municipal, superior, or federal district court with jurisdiction over the City of Temecula. In the event of
litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROIDBITED INTEREST. No member, officer, or employee of the City ofTemecula or of
a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during
his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board member, officer
or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, or in the business of the contracting party other than the City ofTemecula, and
that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest would not be
considered a conflict of interest under Article 4 )commencing with Section 1090) or Article 4.6 (commencing
with Section 1220) of Division 4 ofTitIe I of the Government Code of the State of California.
27. 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.
28. AUTHORITY TO EXECUTE TIDS 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year [lIst above written.
CITY OF TEMECULA
Jeffrey E, Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
MURRIETA DEVELOPMENT CO., INC.
42540 Rio Nedo
Temecula, CA 92590
(909) 719-1680
Dennis T. Cissell, President
7
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EXHIBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City of Temecula. Work will include emergency repairs,
emergency maintenance, maintenance work, and/or minor construction work. The procedure for assigning
work is set forth as follows:
1. Director of Public Works ("Director") or his designee shall submit to Contractor a written
"Request for Work". The Request for Work shall include a description of the work to be completed, the time
for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost of
material which will be required and the estimated cost oflabor and equipment necessary to complete the work
in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work orally to
the Contractor. As soon as practical following the emergency, the Contractor and Director shall in good faith
confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
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EXHIBIT B
LABOR AND EQUIPMENT RATES
9
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, MURRIEfA DEVELOPMENT CO.. INC.
RENTAL RATES - OPERATED
PzevafUDgWages
330 CAT $ 175.00 /HR
345 CAT $ 205.00 /HR
420 CAT $ 95.00 /HR
4300 LINKBELT $ 17S,OO /HR
COMPACTION EQUIPMENT
COMPAcrION WHEEL-ON ANY EQUlPMENl' $ 40,00 /HR
REX COMPAcrOR $ 110.00 {HR
STaMPER $ 105.00 /HR
WACKER /VIBRATORY PLATE $ 100,00 /DAY
DOZERS
650 JOHN DEERE w/SLOPE BOARD $ 105,00 /HR
D-4H CAT w/SLOPE BOARD $ 105.00 /HR
D-6M CAT $ 125,00 /HR
D-6R CAT $ 135,00 /HR
LOADERS
926 CAT (1/2 Yard Bucket) $ 105,00 {HR
950 CAT (3/4 Yard Bucket) $ 115,00 /HR
SKIPLOADERS
JOHN DEERE 21O-L $ 85.00 {HR
MASSONRY-FERGUSON MF50 $ 85.00 {HR
AIR COMPRESSORS / JACK HAMMERS $ 150.00 /DAY
AIR TESTING jPRESSURE TESTING (Equipment Only) $ 150.00 {DAY
BLOWER $ 75.00 /DAY
CEMENT MIXER $ 50,00 /DAY
CHOP SAW $ 100,00 /DAY
CREW TRUCK $ 25.00 {HR
DUMP TRUCK $ 75,00 /HR
DUMP TRUCK wfTRAILER $ 95.00 /HR
END DUMP $ 95.00 /HR
FOREMAN $ 6S,OO /HR
GAS DETEcrION (Equipment Only) $ 50,00 /DAY
GENERATOR - HAMMER DRILL $ 55,00 /DAY
GRADE CHECKER $ 40.00 IHR
GRINDER $ 25.00 /DAY
HYDROSTATIC PUMP $ 100,00 /DAY
LABORER $ 40,00 /HR
LEAl( LOCATING (Equipment Only) $ 150.00 /DAY
LOWBED $ 95.00 /HR
OPERATOR $ 43.00 IHR
REED SCREEN ALL $ 50.00 /HR
ROLLER $ 200,00 /DAY
SILVER SOLDERING $ 55,00 /HR
TRASH PUMPS & HOSES $ 100,00 /DAY
TRUCK & TRANSFER $ 90,00 /HR
WATER TRUCK $ 75.00 /HR
WAYNE'S BALL (Equipment Only) $ 75.00 jDAY
WELDER $ 65.00 /HR
DENNIS T, CISSEll, PRESIDENT
TODD K. CLOSE, VICE PRESIDENT
i/25/2002
liIe:/M1SC/r=.talJ1Itell.x1s
RECEIVED
MAY 2 7 Z003
CITY OF TEMECULA
ENGINEERING DEPARTMENT
ALL HOURS IN EXCESS OF 8 HOURS PER DAY AND/OR 40 HOURS PER WEEK WILL BE CHARGED AT TIME
AND A HALF. THERE WILL BE NO CHARGE FOR OPERATOR WITH RENl'AL OF EQUlPMENl' WITH THE
EXCEPrION OF OVERTIME, OPERATOR OVERTIME WILL BE CHARGED AT HALF TIME HOURLY RATE TO
DEVELOPER TIME & MATERIAL SERVICES WILL BE BILLED AT COST PLUS 15% PROFIT AND OVERHEAD,
42540 RIO NEDO, TEMECULA, CA 92590 . CALIF, LIe. #558592 . (909) 719-1680 . FAX (909) 719-1684
CITY OF TEMECULA
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
CITYWIDE ROUTINE MAINTENANCE
TIDS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by and
between the City ofTemecula, ("City") and RENE'S COMMERCIAL MANAGEMENT ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance and/or construction upon real and personal property of the City ofTemecula. Work
will include emergency repairs, emergency maintenance, maintenance work, and/or minor construction work
The work under this Agreement is non-exclusive and City reserves the right to hire other contractors to perform
similar work. The procedure for assigning work is set forth in Exhibit "A", Scope of Work, attached hereto
and incorporated herein as though set forth in full. The Director of Public Works ("Director"), or his designee,
is authorized to approve the work in accordance with the procedures of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and shall
terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures set
forth in Exhibit "A". The maximum amount of payment under this Agreement shall be One Hundred
Thousand Dollars and No Cents ($100,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices shall
be submitted between the first and fifteenth day of each month for services provided during the previous
month. The invoice shall describe the approved work assignment under which the work has been performed.
Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed fees. If the City
disputes any of the Contractor's fees, it shall give written notice to the Contractor within thirty (30) days of
receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor shall cause
a full time experienced Superintendent to be present on the site during all construction and to oversee and
supervise the Work
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished
and work performed and completed subject to the approval of the City orits authorized representatives, and the
quality of the workmanship shall be guaranteed for one year from date of acceptance.
6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph 2.,
above, Contractor shall subrnit to the City, in writing, all claims for compensation under or arising out of this
contract; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against the
City under or arising out of this Contract except those previously made in writing and request for payment.
R:\maintain\workorders\Renes 03..()4 Agrmt\master canst agnnt
Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for
payment.
7. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates are
available from the California Department Industrial Relations' Internet web site http://www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates
as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6,
and 1813 of the Labor Code. Pursuantto the provisions of 1775 of the Labor Code, Contractor shall forfeit to
the District, as a penalty, the sum of$25.00 for each calendar day, or portion thereof, for each laborer, worker,
or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by
him or by any subcontractor under him, in violation of the provisions of the Contract.
8. 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 3.
9. 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, the
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 ornegligence of the Contractor, it shall not be considered a default.
b. If the City 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 (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.
10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Contractor's negligent or wrongful acts or ornissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
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11. LIABILITY INSURANCE. 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 Scone of Insurance. Coverage shall be at least as broad as:
(I) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 000 I).
(2) Insurance Services Office form number CA 000 I (Ed. 1/87) covering
Automobile Liability, code I (any auto).
(3) Worker's Compensation insurance as required by the State of Cali fomi a and
Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
(I) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses and related
investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(I) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the 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, its 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, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by the
City, its officers, officials, employees or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it,
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The 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 clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
e. Acceotabilitv of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for W orkrnan's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and 1 will comply with such
provisions before commencing the performance of the work of this Contract."
12, TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 tirnes be under Contractor's exclusive direction and control. Neither the City nor any
of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for the City. The City shall not be liable for compensation or indemnification to Contractor for
injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSffiILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
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examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the City
for purposes ofletting this Contract out to proposal will be accepted as an excuse for any failure or omission on
the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any, to
be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been
filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and
audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manrreras to not unduly delay the Work. The Work shall be subject to fmal inspection and
acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made
within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or
handicap.
22. WRITTEN NOTICE. Any notices which either party may desire to give to the other party
under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Rene's Commercial Management
1002 Luna Way
San Jacinto, California 92583
(909) 487-0247
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23. 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 of Temecula.
24. 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.
25. 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 jurisdiction over the City ofTemecula. In the event of
litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROIDBITED INTEREST. No member, officer, or employee of the City ofTemecula or of
a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during
his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board member, officer
or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula, and
that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest would not be
considered a conflict of interest under Article 4 )commencing With Section 1090) or Article 4.6 (commencing
with Section 1220) of Division 4 of Title I of the Government Code of the State of California.
27. 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.
28. AUTHORITY TO EXECUTE TIDS 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
RENE'S COMMERCIAL MANAGEMENT
1002 Luna Way
San Jacinto, CA 92583
(909) 487-0247
Rene Martinez, Sr., Owner
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EXHIBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City ofTemecula. Work will include emergency repairs,
emergency maintenance, maintenance work, and/or minor construction work. The procedure for assigning
work is set forth as follows:
1. Director of Public Works ("Director") or his designee shall submit to Contractor a written
"Request for Work". The Request for Work shall include a description of the work to be completed, the time
for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost of
material which will be required and the estimated cost oflabor and equipment necessary to complete the work
in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work orally to
the Contractor. As soon as practical following the emergency, the Contractor and Director shall in good faith
confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
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EXHIBIT B
LABOR AND EQUIPMENT RATES
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Rene's Commercial Management
1002 Luna Way * San Jacinto, CA 92583 *
TeL (909) 487-0247 * Fax (909) 487-0479
CLIENT: City ofTemecula
DATE: May 22, 2003
TIME & MATERIAL RATES
FOR
JULY 2003 I 2004
RECEIVED
MAY 2 7 Z003
WEED SPRAYING:
CtlY OF TEMECULA
ENGINEERING DEPARTMENT
1) Pre-emergent Applications:
a) Sensitive Areas (Landscape areas):
b) Non-sensitive Areas (Roadsides):
$203.00/Ac
$195.00/Ac
2) Post-emergent Applications:
(Older, larger weeds, higher rates)
$130.00 - $180.00/Ac
MECHANICAL WEED ABATEMENT:
Man I Equipment
Foreman &
Pick-up
Per Hour
$22.40
$28.00
Sat 1+8 hrs.
$26.50
$$31.25
Emer2encv Response Rate
$31.15
$34.85
GENERAL LABOR. TRASH PICK-UP. HAULING. ETC:
Per Hour
Sat. 1+8 hrs.
Emer2encv Response Rate
Foreman & Pick-up $28.00
Per Man Hour $20.50
$31.25
$23.50
$34.85
$28.50
TRACTOR I MOWING:
Equipment with Operator: $55.00/Hr.
(Rate includes transportation cost)
(Minimum 3 Hours Charge)
All of these rates reflect current "Prevailing Wage and Certified Payroll".
Rene B. Martinez Sr. - Cellular Phone: (909) 830-0239 - 24 Hours
Rene's Commercial Management
1002 Luna Way * San Jacinto, CA 92583 *
TeL (909) 487-0247 * Fax (909) 487-0479
CLIENT: City of Temecula
DATE: May 22, 2003
TIME & MATERIAL RATES
FOR
JULY 2003 /2004
WEED SPRA VING:
1) Pre-emergent Aoolications:
a) Sensitive Areas (Landscape areas):
b) Non-sensitive Areas (Roadsides):
$203.00/Ac
$195.00/Ac
2) Post-emergent Aoolications:
(Older, larger weeds, higher rates)
$130.00 - $180,OO/Ac
MECHANICAL WEED ABATEMENT:
Man I Equipment
Foreman &
Pick-up
Per Hour
$22.40
$28.00
Sat I +8 hrs.
$26.50
$$31.25
Emen!enCV Resoonse Rate
$31.15
$34,85
GENERAL LABOR. TRASH PICK-UP. HAULING. ETC:
Per Hour
Sat. 1+8 hrs.
Emen!encv Resoonse Rate
Foreman & Pick-up $28.00
Per Man Hour $20.50
$31.25
$23.50
$34.85
$28.50
TRACTOR / MOWING:
Equipment with Operator: $55.00/Hr.
(Rate includes transportation cost)
(Minimum 3 Hours Charge)
All of these rates reflect current "Prevailing Wage and Certified Payroll".
Rene B. Martinez Sr. - Cellular Phone: (909) 830-0239 - 24 Hours
CITY OF TEMECULA
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
CITYWIDE ROUTINE MAINTENANCE
TIDS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by and
between the City of Temecula, ("City") and TORAN DEVELOPMENT & CONSTRUCTION
("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as
follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance and/or construction upon real and personal property of the City ofTemecula. Work
will include emergency repairs, emergency maintenance, maintenance work, and/or minor construction work.
The work under this Agreement is non-exclusive and City reserves the right to hire other contractors to perform
similar work. The procedure for assigning work is set forth in Exhibit "A", Scope of Work, attached hereto
and incorporated herein as though set forth in full. The Director of Public Works ("Director"), or his designee,
is authorized to approve the work in accordance with the procedures ofthis Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1,2003 and shall
terminate as of June 30,2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures set
forth in Exhibit "A". The maximum amount of payment under this Agreement shall be One Hundred
Thousand Dollars and No Cents ($100,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices shall
be submitted between the fIrst and fIfteenth day of each month for services provided during the previous
month. The invoice shall describe the approved work assignment under which the work has been performed.
Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed fees. If the City
disputes any of the Contractor's fees, it shall give written notice to the Contractor within thirty (30) days of
receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor shall cause
a full time experienced Superintendent to be present on the site during all construction and to oversee and
supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished
and work performed and completed subject to the approval of the City or its authorized representatives, and the
quality of the workmanship shall be guaranteed for one year from date of acceptance.
6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph 2.,
above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out of this
contract; the acceptance by Contractor of the fInal payment shall constitute a waiver of all claims against the
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City under or arising out of this Contract except those previously made in writing and request for payment.
Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for
payment.
7. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates are
available from the California Department ofIndustrial Relations' Internet web site http://www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates
as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6,
and 1813 of the Labor Code. Pursuantto the provisions ofl775 of the Labor Code, Contractor shall forfeitto
the District, as a penalty, the sum of$25.00 for each calendar day, or portion thereof, for each laborer, worker,
or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by
him or by any subcontractor under him, in violation of the provisions of the Contract.
8. SUSPENSION OR TERl\fiNATION 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 Agreernent pursuant to this Section, the Contractor
will submit an invoice to the City pursuant to Section 3.
9. 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, the
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 City 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 (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.
10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Contractor's negligent or wrongful acts or omissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
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11. LIABILITY INSURANCE. 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 coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 000 I (Ed. 1/87) covering
Automobile Liability, code I (any auto).
(3) Worker's Compensation insurance as required by the State of California and
Employer's Liability Insurance.
b. Minirnum Limits of Insurance. Contractor shall maintain limits no less than:
(I) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses and related
investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the 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, its 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, its officers, officials,
ernployees and volunteers. Any insurance or self-insured maintained by the
City, its officers, officials, employees or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The 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 clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
e. Acceotabilitv of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for W orlanan's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and 1 will comply with such
provisions before commencing the performance of the work of this Contract."
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the City nor any
of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for the City. The City shall not be liable for compensation or indemnification to Contractor for
injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Contractor to cornply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
4
R:\maintain\workorders\Toran 03-04 Agnnt\master const agnnt
examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the City
for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or omission on
the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any, to
be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been
filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and
audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to fmal inspection and
acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made
within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or
handicap.
22. WRITTEN NOTICE. Any notices which either party may desire to give to the other party
under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Toran Development & Construction
37110 Mesa Road
Temecula, California 92592-8950
(909) 302-5965
5
R:\maintain\workorders\Toran 03-04 Agnnt\master const agrrnt
23. 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 of Temecula.
24. 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.
25. 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 govem the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in
the municipal, superior, or federal district court with jurisdiction over the City ofTemecula. In the event of
litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROHIBITED INTEREST. No member, officer, or employee of the City ofTemecula or of
a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during
hisiher tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board member, officer
or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, or in the business ofthe contracting party other than the City of Temecula, and
that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest would not be
considered a conflict of interest under Article 4 )commencing with Section 1090) or Article 4.6 (commencing
with Section 1220) of Division 4 of Title I of the Government Code of the State of California.
27. 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.
28. AUTHORITY TO EXECUTE TIDS 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.
6
R:\maintain\workorders\Toran 03-04 Agnnt\master const agnnt
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
TORAN DEVELOPMENT & CONSTRUCTION
37110 Mesa Rd.
Temecula, CA 92592-8950
(909) 302-5965
Gary D. Clapp, Owner
7
R:\maintain\workorders\Toran 03-04 Agrmt\master const agrmt
EXHIBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City ofTemecula. Work will include emergency repairs,
emergency maintenance, maintenance work, and/or minor construction work. The procedure for assigning
work is set forth as follows:
1. Director of Public Works ("Director") or his designee shall submit to Contractor a written
"Request for Work". The Request for Work shall include a description of the work to be completed, the time
for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost of
material which will be required and the estimated cost oflabor and equipment necessary to complete the work
in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work orally to
the Contractor. As soon as practical following the emergency, the Contractor and Director shall in good faith
confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
8
R:\rnaintain\workorders\Toran 03..04 Agrmt\master const agrmt
EXHIBIT B
LABOR AND EQUIPMENT RATES
9
R:\maintain\workorders\Toran 03-04 Agrmt\master const agrmt
RECEIVED
MAY 2 7 Z003
371 10 Mesa Rd.
Temecula, Ca. 92592
Teleplwne (909) 302-5965
Fax (909) 303-6583
!J.tI:::':' .
.~~~1;,',.".~i!ot..
UPDATED TIME AND MATERIAL SHEET
May 23, 2003
City ofTemecula
43200 Business Park Dr.
Temecula, Ca. 92590
All: Brad Buron
To Whom It May Concern:
.Asp,!ir YllUr request on 4/15103 concerning an updated time and material sheet from our company-
,1., :Genep.! labor.
:.:i
. a. Forman w/truck- $64.50
Labor- $56.50
Cc All material is cost +15%
2. Painting:
a. Lightpoles- $1l5.00each
b. Map structures- $93.00 each
c. Boxes- $37.50 each
d. Arches- $245.00 each
e, Buss stop- $196.00 each
f, Telephone structure- $97.50 each
g. Repaint restroom exterior only- $6,035.00
. . . . . . . . .. . . . . . . . . . . . . . .
May 23. 2003
Page 2
3. Boardwalk (aprox. 20,000 sq. ft.)
a. Seal only- $1.41 sq.ft.
b. Sand any high, or bad spots- $.56 sq. ft.
c. Add wood plugs- $1.15 each
4. Clean, pressure wash and paint main st. bridge- $5,310.00
5. Steam clean, pressure wash and seal coat with city supplied sealer 7,985 l.f. of city walk, curb
and gutter- $2.46 l.f.
6. Cut and add hardware to make old whiskey barrels into trash barrels- $146.00 each
Thank you for the opportunity to be of service to you.
Sincerely,
Gary D. Clapp
OS/20/2003 08: ~
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ITEM 7
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINA
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
DATE:
City Manager/City Council
lvJU William G, Hughes, Director of Public Works/City Engineer
June 5, 2003
FROM:
SUBJECT:
Citywide Tree Trimming Maintenance Services
PREPARED BY:
Bradley A. Buron, Maintenance Superintendent
RECOMMENDATION:
That the City Council:
1. Award the Citywide Tree Trimming Maintenance Services contract to West Coast Arborists,
Inc. for $100,000.00 authorize the Mayor to execute the contract.
2. Authorize the City Manager to approve change orders not to exceed the contingency amount
of $10,000.00 which is equal to 10% of the contract amount.
BACKGROUND: In May, 2003 Request for Proposals (RFP) and specifications for the
Citywide Tree Trimming Contract were sent to twenty two (22) tree trimming contractors. On May
23, 2003 six (6) qualification proposals were received for Public Works right-of-way tree
maintenance.
The following proposals were submitted:
1. West Coast Arborists, Inc.
2. Great Scott Tree Services
3. California Tree Service
4. GSTP
5. Mariposa Horticultural Enterprises
6. Atlas Environmental Services
The firms were ranked as shown. Staff has determined that West Coast Arborists, Inc., was the
highest ranked firm based on their submittal and specific unit prices (see attached proposal).
The work to be performed includes Class I tree trimming, tree and stump removals, root pruning,
tree planting and emergency work call-<>uts. This work is necessary to maintain approximately 7,500
right-of-way trees known as the City's Urban Forest. The contractor will inventory all right-of-way
trees by name, size and locations.
Staff has reviewed the bid proposal from West Coast Arborists, Inc.. West Coast Arborists, Inc, has
performed work for the City of Temecula in the past, and we have found their work to be satisfactory.
A copy of the proposal is attached (Exhibit "A") for review.
r:\agdrpt\2003\0624\tree award 03-04/ajp
FISCAL IMPACT: Funds are available in the Public Works Routine Street Maintenance Account
001-164-601-5402. The total project amount is $110,000.00 which includes the contract amount of
$100,000.00 plus the 10% contingency of $10,000.00.
ATTACHMENT:
1. Exhibit "A"
2. Contract
2
r:\agdrpt\2003\0624\tree award 03-04/ajp
EXHIBIT "A"
3
r:\agdrpt\2003\0624\tree award 03..Q4/ajp
Tree Care Professionals Serving Communities Who Care About Trees
www.WCAINC.com
May 23, 2003
City ofTemecula
Office of the City Clerk
43200 Business Park Drive
Temecula, California 92590
REQUEST FOR BID - "TREE TRIMMING SERVICES"
DUE: Friday, May 23, 2003 at 4:00 P.M.
To whom it may concern,
Thank you for allowing us the opportunity to submit a proposal to perform tree maintenance for the
City of Temecula. West Coast Arborists, Inc. (WCA) has a 3D-year track record of working for more
than 100 California municipalities and various public agencies. We have developed a complete
Urban Forestry Management Program that includes a Master Street Tree Plan, Tree Inventory and
Software Management System as part of our Maintenance Program. Our tree maintenance program
includes a well-defined Quality Control Plan which incorporates certified personnel, safety, pruning
specifications, equipment, hours of operation, public relations, traffic control, scheduling of work,
computerized billing, and public convenience.
.
Our company has been in business since 1972 and is licensed by the California State Contractors
License Board under license #366764 with a local office and yard in the City of Anaheim. We have
held this license in good standing since 1976. The license specializes in Class C61 (Tree Service) as
well as Class C27 (landscaping). Also, we have an A+ rating from the bonding board. We currently
employ over 40 Certified Arborists and over 100 Certified Treeworkers, as recognized by the
Western Chapter of the International Society of Arboriculture.
In addition to the references listed in our Proposal, we are currently under contract with the Cities of
lake Elsinore, Murrieta, and Encinitas providing tree care. We would encourage your agency to
contact these Cities or any of the listed references. Also, attached please find supporting documents
including information about our organization, qualifications of personnel, method of operation,
health and safety plan, and a green waste diversion plan. We will not use any subcontractors for this
project.
For this important project, Mr. Frank Quinn, Area Manager, will be responsible for field services and
has full authority to schedule and coordinate services. Should you have any questions or require
additional information, please do not hesitate to contact Mr. Quinn or me at (800) 521-3714.
Sincerely,
i~:tU'
Director of Marketing
West Coast Arborists, Inc.
2200 E Via Burton Street . Anaheim, CA 92806 . 714991,1900 . 800,521.3714 . Fax 714,956,3745
CITY OF TEMECULA
TREE TRIMMING RFP
BID PRICES FOR PROPOSED TREE TRIMMING CONTRACT
Based On Approximately 7,500 Trees In Various Locations Throughout the City of Temecula
'j ~. -;/:;)'-'.,0:,'.',
. '.." ".,.~",.,,,,.'-,;:~
STREET TREE TRIMMING - CLEARANCE TRIM $ 19.50 each
STREET TREE AESTHETIC TRIMMING - FULL TRIM $ 30.00 each
PALM TREE TRIMMING $ 19.50 each
COMPLETE TREE & STUMP REMOVAL $ 14.50 diameter Inch
STUMP REMOVAL $ 4.50 diameter Inch
ROOT PRUNING WITHOUT ROOT BARRIER $ 50.00 each
ROOT PRUNING WITH ROOT BARRIER $ 100.00 each
10' X 18" DEEP ROOT OR EQUIVALENT
TREE PLANTING:
15 gal. w/root barrier $ 100.00 each
15 gal. w/o root barrier $ 85.00 each
24 Inch box w/root barrier $ 200.00 each
24 Inch box w/o root barrier $ 185.00 each
waterln $ 395.00 da
CREW RENTAL. 3 MEN, AERIAL UNIT, DUMP TRUCK $ hour
& CHIPPER 105.00
CREW RENTAL. 2 MEN, AERIAL UNIT, DUMP TRUCK $ 70.00 hour
& CHIPPER
CREW RENTAL - 1 MAN $ 35.00 hour
EMERGENCY WORK CALL OUT . 3 MEN INCLUDING $ 200.00 hour
ALL NECESSARY EQUIPMENT, DISPOSAL FEES, AND
ZERO MATERIAL MARK.UP
1. Attach a statement of qualifications outlining the contractors corporate profile and contractor's experience In
providing tree trimming services as required by the RFP.
2. Attach a list of client references.
3. Selected contractor will provide the following documentation upon execution of the contract:
. Certificate of Insurance as outlined in the requirements in attachment B.
. Completed W-9 fOITTl
. Copy of City of Temecula Business License
4. It is intended that other public agencies (i.e., city, special district, public authority, public agency, and
other political sub-division of the State of Californian) located in Riverside County shall have the option
to participate in any agreement created as a result of this Request for Proposal with the same terms
and conditions as to the price of the product and/or service. The City of Temecula shall incur no
financial responsibility in connection with a purchase order from another public agency. Any public
13
agency that "piggy-backs" on any negotiated contract between the City of Temecula and vendor shall
accept sole responsibility for negotiating, placing orders, and making payment to vendor.
5. Vendor's agreement or failure to agree to the "piggyback" clause will not be a factor in award of the
contract.
Check one of the following:
(J The prices, terms, and conditions in our bicl!proposal are not extended to any other agency.
(J I hereby agree to extend all prices, terms, and conditions of my bicl!proposal to any other public
agency located in Riverside County with the following exception(s) noted on the attached.
"" I hereby agree to extend all prices, terms, and conditions of my bicl!proposal to any other public
agency located in Riverside County with no exceptions.
Victor M. Gonzalez, Director of Marketi.
NamefTitle/Date May 20, 2003
iJ,it:-liJ, ~
Signature
14
,'BUSIN~SSUCENSE, . .'".', . .::,cjmY'~f.JI;I\IIECULA .
;'""""iim;..."',~~~~,.. 1hiS~,,; ";"~~ .iii09l'i... :'::"",1;'~~"'ji!Jl~rtml;lnl.. .
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;'i~~~U;'i#~'~,~'~~~i<( ',:, ;.;':~~~L' , , :,:-: ,', Temecula, CA 92590
" .trOOilOeiis!JjliY1h&'Stijte~""SliiitSUChiSSutix:el>e'~ WilIver'oftMCiyOlt." . 10;:-,,' .... '..", "
'~. )/:#.futUr9.~_Of~~or~:',;<~,~;,-_;;;:_:-.::": ".' ..!~_~,{;.,,~_ _~.,-' .: -(,.>.-~:,- . ",'. - :
."",is......., ...__ ,;'; . ,ll~~~i'"!;};is
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...:.;-,.
CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT
CONTRACT
FOR
CITYWIDE TREE MAINTENANCE SERVICES
THIS CONTRACT, made and entered into the 24th day of June, 2003 by and between the City of
Temecula, a municipal corporation, hereinafter referred to as "CITY", and West Coast Arborists,
Inc., hereinafter referred to as "CONTRACTOR."
WITNESSETH:
That CITY and CONTRACTOR, for the consideration hereinafter named, mutually agree
as follows:
1. CONTRACT DOCUMENTS. The complete Contract includes all of the Contract
Documents, to wit: Notice Inviting Bids, Instructions to Bidders, Proposal, Performance
Bond, labor and Materials Bond, Plans and Specifications entitled CITYWIDE TREE
MAINTENANCE SERVICES, Insurance Forms, this Contract, and all modifications and
amendments thereto, the State of California Standard Plans and Specifications for
Construction of local Streets and Roads, (latest edition), issued by the California
Departrnent of Transportation, where specifically referenced in the Plans, Special
Provisions, and Technical Specifications, and the latest version of the Standard
Specifications for Public Works Construction, including all supplements as written and
promulgated by Public Works Standards, Inc (hereinafter, "Standard Specifications") as
amended by the General Specifications, Special Provisions, and Technical Specifications
for CITYWIDE TREE MAINTENANCE SERVICES. Copies of these Standard
Specifications are available from the publisher:
BNi Building News
Division of BNi Publications, Inc.
1612 South Clementine St.
Anaheim, California 92802
(714) 517-0970
The Standard Specifications will control the general provisions, construction materials,
and construction methods for this Contract except as amended by the General
Specifications, Special Provisions, and Technical Specifications for CITYWIDE TREE
MAINTENANCE SERVICES.
In case of conflict between the Standard Specifications and the other Contract
Documents, the other Contract Documents shall take precedence over, and be used in
lieu of, such conflicting portions.
Where the Contract Documents describe portions of the work in general terms, but not in
complete detail, it is understood that the item is to be furnished and installed completed
and in place and that only the best general practice is to be used. Unless otherwise
specified, the CONTRACTOR shall furnish all labor, materials, tools, equipment, and
incidentals, and do all the work involved in executing the Contract.
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The Contract Documents are complementary, and what is called for by anyone shall be as
binding as if called for by all. Any conflict between this Contract and any other Contract
Document shall be resolved in favor of this Contract.
2. SCOPE OF WORK. CONTRACTOR shall perform everything required to be performed,
shall provide and furnish all the labor, materials, necessary tools, expendable equipment,
and all utility and transportation services required for the following:
CITYWIDE TREE MAINTENANCE SERVICES
All of said work to be performed and materials to be furnished shall be in strict accordance
with the Drawings and Specifications and the provisions of the Contract Documents
hereinabove enumerated and adopted by CITY,
3. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished
and work performed and completed under the direction and supervision, and subject to
the approval of CITY or its authorized representatives.
4. CONTRACT AMOUNT AND SCHEDULE. The CITY agrees to pay, and CONTRACTOR
agrees to accept, in full payment for, the work agreed to be done, the sum of: ONE
HUNDRED THOUSAND DOLLARS and NO CENTS ($100,000.00), the total amount of
the base bid.
TERM: The term of the contract shall commence upon award by the City Council and
continue through June 30, 2004, The City reserves the option to extend the contract(s) for
an additional three (3) years. No price adjustments will occur during the first thirty-six (36)
months of this agreement. Upon request of the Contractor and agreement by the City, the
item prices may be adjusted by the amount equal to the increase or decrease, during the
previous twelve (12) months, in the Riverside, San Bernardino ALL Urban Consumers
Index to determine the percentage of increase or decrease, the term "previous twelve
months" shall be the 12 month period ending June 30th of that year, or if not available, the
prior month.
CONTRACTOR agrees to complete the work in a period not to exceed thirty (30) working
days, commencing with delivery of a Notice to Proceed by CITY. Construction shall not
commence until bonds and insurance are approved by CITY.
5. CHANGE ORDERS. All change orders shall be approved by the City Council, except that
the City Manager is hereby authorized by the City Council to make, by written order,
changes or additions to the work in an amount not to exceed the contingency as
established by the City Council.
6. PAYMENTS
A. LUMP SUM BID SCHEDULE:
Before submittal of the first payment request, the CONTRACTOR shall submit to
the City Engineer a schedule of values allocated to the various portions of the
work, prepared in such form and supported by such data to substantiate its
accuracy as the City Engineer may require. This schedule, as approved by the
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City Engineer, shall be used as the basis for reviewing the CONTRACTOR's
payment requests.
B. UNIT PRICE BID SCHEDULE:
Pursuant to Section 20104.50 of the Public Contract Code, within thirty (30) days
after submission of a payment request to the CITY, the CONTRACTOR shall be
paid a sum equal to ninety percent (90%) of the value of the work completed
according to the bid schedule. Payment request forms shall be submitted on or
about the thirtieth (30th) day of each successive month as the work progresses.
The final payment, if unencumbered, or any part thereof unencumbered, shall be
made sixty (60) days after acceptance of final payment and the CONTRACTOR
filing a one-year Warranty and an Affidavit of Final Release with the CITY on forms
provided by the CITY.
C. Payments shall be made on demands drawn in the manner required by law,
accompanied by a certificate signed by the City Manager, stating that the work for
which payment is demanded has been performed in accordance with the terms of
the Contract, and that the amount stated in the certificate is due under the terms of
the Contract. Partial payments on the Contract price shall not be considered as an
acceptance of any part of the work.
D. Interest shall be paid on all undisputed payment requests not paid within thirty (30)
days pursuant to Public Contracts Code Section 20104.50. Public Contract Code
Section 7107 is hereby incorporated by reference.
E. In accordance with Section 9-3.2 of the Standard Specifications for Public Works
Construction and Section 9203 of the Public Contract Code, a reduction in the
retention may be requested by the Contractor for review and approval by the
Engineer if the progress of the construction has been satisfactory, and the project
is more than 50% complete. The Council hereby delegates its authority to reduce
the retention to the Engineer.
7. LIQUIDATED DAMAGES - EXTENSION OF TIME. In accordance with Government
Code Section 53069.85, CONTRACTOR agrees to forfeit and pay to CITY the sum of one
thousand dollars ($1,000.00) per day for each calendar day completion is delayed beyond
the time allowed pursuant to Paragraph 4 of this Contract. Such sum shall be deducted
from any payments due to or to become due to CONTRACTOR. Such sum shall be
deducted from any payments due to or to become due to CONTRACTOR.
CONTRACTOR will be granted an extension of time and will not be assessed liquidated
damages for unforeseeable delays beyond the control of, and without the fault or
negligence of, the CONTRACTOR including delays caused by CITY. CONTRACTOR is
required to promptly notify CITY of any such delay.
8. WAIVER OF CLAIMS. On or before making each request for payment under Paragraph 6
above, CONTRACTOR shall submit to CITY, in writing, all claims for compensation as to
work related to the payment. Unless the CONTRACTOR has disputed the amount of the
payment, the acceptance by CONTRACTOR of each payment shall constitute a release of
all claims against the CITY related to the payment. CONTRACTOR shall be required to
execute an affidavit, release, and indemnity agreement with each claim for payment.
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9. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per
diem wages and the general rate for holiday and overtime work in this locality for each
craft, classification, or type of workman needed to execute this Contract, from the Director
of the Department of Industrial Relations. These rates are available from the California
Department of Industrial Relations's Internet Web Site at http://www.dir.ca.gov.
CONTRACTOR shall post a copy of such wage rates at the job site and shall pay the
adopted prevailing wage rates as a minimum. CONTRACTOR shall comply with the
provisions of Section 1773.8, 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code.
Pursuant to the provisions of 1775 of the Labor Code, CONTRACTOR shall forfeit to the
CITY, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for each
laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for
any work done under this Contract, by him or by any subcontractor under him, in violation
of the provisions of the Contract.
10. TIME OF THE ESSENCE. Time is of the essence in this contract.
11. INDEMNIFICATION. All work covered by this Contract done at the site of construction or
in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone.
CONTRACTOR agrees to save, indemnify, hold harmless and defend CITY, its officers,
employees, and agents, against any and all liability, injuries, or death of persons
(CONTRACTOR's employees included) and damage to property, arising directly or
indirectly out of the obligations herein undertaken or out of the operations conducted by
CONTRACTOR, save and except claims or litigations arising through the sole active
negligence or sole willful misconduct of the CITY.
The CONTRACTOR shall indemnify and be responsible for reimbursing the CITY for any
and all costs incurred by the CITY as a result of Stop Notices filed against the project. The
CITY shall deduct such costs from Progress Payments or final payments due to the CITY.
12, GRATUITIES. CONTRACTOR warrants that neither it nor any of its employees, agents, or
representatives has offered or given any gratuities or promises to CITY's employees,
agents, or representatives with a view toward securing this Contract or securing favorable
treatment with respect thereto.
13. CONFLICT OF INTEREST. CONTRACTOR warrants that he has no blood or marriage
relationship, and that he is not in any way associated with any City officer or employee, or
any architect, engineer, or other preparers of the Drawings and Specifications for this
project. CONTRACTOR further warrants that no person in its employ has been employed
by the CITY within one year of the date of the Notice Inviting Bids.
14. CONTRACTOR'S AFFIDAVIT, After the completion of the work contemplated by this
Contract, CONTRACTOR shall file with the City Manager, its affidavit stating that all
workmen and persons employed, all firms supplying materials, and all subcontractors
upon the Project have been paid in full, and that there are no claims outstanding against
the Project for either labor or materials, except certain items, if any, to be set forth in an
affidavit covering disputed claims or items in connection with a Stop Notice which has
been filed under the provisions of the laws of the State of California,
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15. NOTICE TO CITY OF LABOR DISPUTES. Whenever CONTRACTOR has knowledge
that any actual or potential labor dispute is delaying or threatens to delay the timely
performance of the Contract, CONTRACTOR shall immediately give notice thereof,
including all relevant information with respect thereto, to CITY.
16. BOOKS AND RECORDS. CONTRACTOR's books, records, and plans or such part
thereof as may be engaged in the performance of this Contract, shall at all reasonable
times be subject to inspection and audit by any authorized representative of the CITY.
17. INSPECTION. The work shall be subject to inspection and testing by CITY and its
authorized representatives during manufacture and construction and all other times and
places, including without limitation, the plans of CONTRACTOR and any of its suppliers.
CONTRACTOR shall provide all reasonable facilities and assistance for the safety and
convenience of inspectors. All inspections and tests shall be performed in such manner
as to not unduly delay the work. The work shall be subject to final inspection and
acceptance notwithstanding any payments or other prior inspections. Such final
inspection shall be made within a reasonable time after completion of the work.
18. DISCRIMINATION. CONTRACTOR represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national
origin, color, sex age, or handicap,
19. 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 Contract and also govern the interpretation of this Contract. Any litigation concerning
this Contract shall take place in the municipal, superior, or federal district court with
geographic jurisdiction over the City of Temecula. In the event of litigation between the
parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
20. PROHIBITED INTEREST. No member, officer, or employee of the City of Temecula or of
a local public body shall have any interest, direct or indirect, in the contract of the
proceeds thereof during his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no
board member, officer or employee of the City of Temecula has any interest, whether
contractual, non-contractual, financial or otherwise, in this transaction, or in the business
of the contracting party other than the City of Temecula, and that if any such interest
comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest
would not be considered a conflict of interest under Article 4 (commencing with Section
1090) or Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the
Government Code of the State of California,
21, ADA REQUIREMENTS. By signing this contract, Contractor certifies that the Contractor
is in total compliance with the Americans with Disabilities Act of 1990, Public Law 101-
336, as amended.
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22, WRITTEN NOTICE. Any written notice required to be given in any part of the Contract
Documents shall be performed by depositing the same in the U.S. Mail, postage prepaid,
directed to the address of the CONTRACTOR as set forth in the Contract Documents,
and to the CITY addressed as follows:
Mailing Address:
William G. Hughes
Director of Public Works/City Engineer
City of Temecula
P.O. Box 9033
Temecula, CA 92589-9033
Street Address:
William G. Hughes
Director of Public Works/City Engineer
City of Temecula
43200 Business Park Drive
Temecula, CA 92590-3606
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IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed on the
date first above written.
DATED:
CONTRACTOR
West Coast Arborists, Inc.
2200 E. Via Burton SI.
Anaheim, CA 92806
(714) 991-1900
Patrict O'Malley, President
Print or type NAME
Print or type TITLE
(Signatures of two corporate officers required for Corporations)
DATED:
CITY OF TEMECULA
By:
Jeffrey E. Stone, Mayor
APPROVED AS TO FORM:
Peter M, Thorson, City Attorney
ATTEST:
Susan W. Jones, CMC, City Clerk
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ITEM 8
APPROVAL
CITY ATTORNEY
DIRECTOROF FINAN
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
DATE:
City Manager/City Council
~ William G. Hughes, Director of Public Works/City Engineer
June 24, 2003
FROM:
SUBJECT:
Amendment No, 4 to Construction Contract for Fiscal Year 2003-2004
Street Striping Program - Project No. PW01-12
PREPARED BY:
Bradley A. Buron, Maintenance Superintendent
RECOMMENDATION: That the City Council approve Amendment NO.4 to the Construction
Contract with C-18, Inc, for the Fiscal Year 2003-2004 Street Striping, Project No. PW01-12 for an
amount of $225,000.00 and authorize the Mayor to execute the amendment.
BACKGROUND: On August 28, 2001 the City Council approved the annual FY2001-2002
Street Striping Program in the amount of $173,020.59. The Street Striping Program includes
sandblasting and re-painting of street striping twice per year in order to insure visibility and
reflectiveness of street striping.
The construction schedule is a yearly contract, which began in August, 2001. This contract does
contain a provision that allows the contract to be extended on a yearly basis by mutual agreement of
both parties for up to three (3) years.
Amendment No, 1 in the amount of $60,000.00 was approved by City Council on February 26,2002
for additional striping for the Temeku Hills Golf Cart Lane. Amendment NO.2 for the Fiscal Year
2002-2003 was approved by Council on July 9, 2002 in the amount of $225,000.00, Amendment
NO.3 was approved by the City Manager on January 15, 2003, amending Section 7-B pertaining to
not withholding of 10% retention and requiring the contractor to submit invoices monthly for services
performed and payment to be paid within 30 days of receipt for all non-disputed fees.
Amendment NO.4 for Fiscal Year 2003-2004 for the Street Striping Program will extend the contract
term through June 30, 2004 for an amount not to exceed $225,000.00.
FISCAL IMPACT: Adequate funds are available in the Fiscal Year 2003-2004 Public Works
Maintenance Division Striping/Stenciling Account No. 001-164-601-5410, and the Traffic Division
Striping/Stenciling Account No. 001-164-602-5410, The original contract limit was $173,020.59 plus
the 10% contingency amount of $17,302.06 for a total contract amount of $190,322.65.
Amendments 1 and Amendment 2 were approved for a total amount of $285,000.00. The revised
contract amount including Amendment NO.4 in the amount of $225,000.00 for a total contract
amount of $683,020,59.
ATTACHMENT:
Amendment NO.4
R\AGENDA REPORTS\2003\062403\PW01.12 striping Amend 4.00C
FOURTH AMENDMENT TO CONTRACT
BETWEEN CITY OF TEMECULA AND
C-18, INC.
FISCAL YEAR 2003-2004 STREET STRIPING PROGRAM
PROJECT NO. PW01-12
THIS FOURTH AMENDMENT is made and entered into as of June 24, 2003 by and
between the City of Temecula, a municipal corporation ("City") and C-18, Inc. ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. This Amendment is made with respect to the following facts and purposes:
A. On August 28, 2001, the City and Contractor entered into that certain
Contract entitled "City of Temecula Contract in the amount not to exceed
$173,020.59 for Street Striping Program" ("Contract").
B. On February 26, 2002 in the amount of $60,000.00 for additional striping,
July 9, 2002, in the amount of $225,000.00 for FY2002-2003 Street Striping
Program, and on January 15, 2003 for a release of the 10% retention. The Contract
as amended shall be referred as the "Contract"
C. The parties now desire to amend the Contract for the amount of $225,000.00
as set forth in this Amendment.
2. Section 4 of the Contract is hereby amended to read as follows:
CONTRACT AMOUNT AND SCHEDULE, The CITY agrees to pay, and
CONTRACTOR agrees to accept, in full paymentfor the work agreed to be done, the
sum of: SIX HUNDRED EIGHTY THREE THOUSAND TWENTY DOLLARS AND
FIFTY NINE CENTS ($683,020.59), the total amount of the base bid.
3. TERM. This Agreement shall be for a period of one (1) fiscal year beginning July 1,
2003 and ending the 30th day of June 2003 unless terminated or extended as
provided. The City reserves the right of option to extend this Contract and to
renegotiate the unit price for the individual bid items of work specified herein. The
quantities of work to be performed shall be requested at the time of negotiating such
extension. Renegotiated price shall be valid for one (1) year commencing on the first
day of July of each fiscal year. In no event shall this Contract be extended beyond
the 30th day of June 2005.
4. Except for the changes specifically set forth herein, all other terms and conditions of
the Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed the
day and year first above written,
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
ATTEST:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attomey
CONTRACTOR
C-18, Inc.
330 E. 3rd Street
Beaumont, CA 92223
(909) 845-3099
Michael Hathaway, President
Print Name and Title
(Signatures for two Corporate Officers required for Corporations)
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ITEM 9
APPROVAL
CITY ATTORNEY
DIRECTOROF FINAN
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/City Council
~/l.william G. Hughes, Director of Public Works/City Engineer
June 24, 2003
DATE:
SUBJECT:
Amendment No.1 to Consultant Services Agreement
with KRW & Associates
PREPARED BY:
Ronald J. Parks, Deputy Director of Public Works
RECOMMENDATION: That the City Council approve Amendment NO.1 to the Engineering
Plan Check, Map and Legal Description Review for Fiscal Year 2002-2003 with KRW & Associates
for an amount not to exceed $5,000.00 and authorize the Mayor to execute the amendment.
BACKGROUND: On July 1, 2002 the City Manager approved entering into an agreement with
KRW & Associates to provide engineering plan check, map and legal description review on an as
needed basis to assist the Land Development staff in providing document review expertise for a
quicker turn around of the plans submitted by developers and residents.
Amendment No. 1 is necessary due to the increase in demand for plan check, map and legal
description review for new development in the area. This has resulted in the agreement being
exhausted sooner than anticipated, Since this increase exceeds the City Manager's approval
authority of $25,000.00 it is necessary to obtain the approval of the City Council to amend the
contract. Delay of this amendment until next fiscal year will delay final map checking for Harveston
and Roripaugh Ranch projects 4 weeks.
The requested Amendment No, 1 with KRW & Associates and the original agreement is for a total
amount of $30,000.00.
FISCAL IMPACT: Adequate funds have been budgeted in the FY2002-03 Public Works Land
Development Division, Consultant Services Account No. 001-163-999-5248 for the original
agreement amount of $25,000.00, plus Amendment NO.1 in the amount of $5,000.00 for a total
agreement amount of $30,000.00.
ATTACHMENT:
1. Amendment NO.1
2. Original Agreement July 1, 2002
R:\Agenda Reports\2003\0624\Winchak Amend 1
FIRST AMENDMENT TO
ENGINEERING PLAN CHECK, MAP and LEGAL DESCRIBTION
REVIEW FISCAL YEAR 2002-2003 AGREEMENT
BETWEEN CITY OF TEMECULA AND
KRW & ASSOCIATES
THIS FIRST AMENDMENT is made and entered into as of June 24, 2003 by and between
the City of Temecula, a municipal corporation ("City") and KRW & Associates ("Consultant"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. This Amendment is made with respect to the following facts and purposes:
A. On July 1,2002 the City and Consultant entered into that certain agreement
entitled "City of Temecula Agreement in the amount of $25,000.00 for Engineering Plan Check, Map
and Legal Description Review" ("Agreement").
Amendment.
B. The parties now desire to amend the Agreement as set forth in this
2. Section 3 of the Agreement is hereby amended to read as follows:
a. The City agrees to pay Consultant monthly, in accordance with the payment
rates and terms and the schedule of payment as set forth in Exhibit "A" attached
hereto and incorporated herein by this reference as though set forth in full, based
upon actual time spent on the above tasks. The First Amendment amount shall not
exceed Five Thousand Dollars and No Cents ($5,000.00) for additional
Engineering Plan Check, Map and Legal Description Review for Fiscal Year 2002-
2003. The maximum amount of payment under this Agreement shall not exceed the
total Agreement amount of Thirty Thousand Dollars and No Cents ($30,000.00)
for the total term of the Agreement unless additional payment is approved as
provided in this Agreement.
3. Exceptfor the changes specifically setforth herein, all other terms and conditions of
the Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF TEMECULA
BY:
Jeffrey E. Stone, Mayor
ATTEST:
BY:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
BY:
Peter M. Thorson, City Attorney
CONTRACTOR
KRW & Associates
P.O. Box 867
Murrieta, CA 92564
(909) 245-0159
BY:
Kris R. Winchak, Owner
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CITY OF TEMECULA
AGREEMENT
FOR CONSULTANT SERVICES
ENGINEERING PLAN CHECK, MAP and LEGAL DESCRIPTIONS REVIEW
FOR THE FISCAL YEAR 2002-2003
TIDS AGREEMENT, is made and effective as of July 1, 2002, between the City of
Temecula, a municipal corporation ("City") and, KRW & Associates ("Consultant") an Engineering Plan
Check, Map and Legal Description Review 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, 2002, and shall remain and
continue in effect until tasks described herein are completed, but in no event later than June 30, 2003, unless
sooner tenninated pursuant to the provisions of this Agreement.
2. SERVICES. Consultant shall perform the tasks described and set forth in Exhibit A,
attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks
according to the schedule of performance which is also set forth in Exhibit "A".
3. PERFORMANCE. Consultant shall at all times faithfully, competently and to the
best of his or her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at
a minimum, generally accepted standards and practices utilized by persons engaged in providing similar
services as are required of Consultant hereunder in meeting its obligations under this Agreement.
4. PAYMENT.
a. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms
and the schedule of payment as set forth in Exhibit "A", attached hereto and incorporated herein by this
reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not
exceed Twenty Five Thousand DoBars and No Cents ($25,000.00) for the total tenn of the Agreement
unless additional payment is approved as provided in this Agreement.
b. Consultant shall not be compensated for any services rendered in connection with its
performance of this Agreement which are in addition to those set forth herein, unless such additional services
are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any
additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time
City's written authorization is given to Consultant for the performance of said services. The City Manager may
approve additional work not to exceed ten percent (10%) of the amount of the Agreement, but in no event shall
such sum exceed twenty five thousand dollars ($25,000.00). Any additional work in excess of this amount
shall be approved by the City Council.
c. Consultant will submit invoices monthly for actual services performed. Invoices shall
be submitted on or about the first business day of each month, for services provided in the previous month.
Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City
disputes any of consultant's fees it shall give written notice to Consultant within 30 days of receipt of a invoice
of any disputed fees set forth on the invoice.
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S. 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
tennination shall not make void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to
Consultant the actual value of the work performed up to the time of termination, provided that the work
performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant
will submit an invoice to the City pursuant to Section 3.
6. DEFAULT OF CONSULTANT.
a. The Consultant's failure to comply with the provisions of this Agreement shall
constitute a default. In the event that Consultant is in default for cause under the tenns 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 tenns or conditions of this Agreement, it shall serve the Consultant with written
notice of the default. The Consultant shall have (10) days after service upon it of said notice in which to cure
the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default
within such period of time, the City shall have the right, notwithstanding any other provision of this
Agreement, to tenninate 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 shaH 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 pennit City to make transcripts therefrom as
necessary, and shall allow inspection of all work, data, documents, proceedings and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3)
years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this Agreement,
all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents
prepared in the course of providing the services to be performed pursuant to this Agreement shall become the
sole property of the City and may be used, reused or otherwise disposed of by the City without the permission
of the Consultant. With respect to computer files, Consultant shall make available to the City, upon reasonable
written request by the City, the necessary computer software and hardware for purposes of accessing,
compiling, transferring and printing computer files.
c. With respect to the design of public improvements, the Consultant shall not be liable
for any injuries or property damage resulting from the reuse of the design at a location other than that specified
in Exhibit A without the written consent of the Consultant.
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8. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect and
hold harm1ess the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Consultant's negligent or wrongful acts or omissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the negligence of the City.
9. INSURANCE REOUlREMENTS. Consultant shall procure and maintain for the
duration of the contract insurance against claims for injuries to persons or damages to property which may arise
from or in connection with the performance of the work hereunder by the Consultant, its agents,
representatives, or employees.
a. Minimum Scone of Insurance. Coverage shall be at least as broad as:
(I) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code I (any auto) with policy limits of not less than
$300,000.
b. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(I) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the Consultant; products and completed operations of the
Consultant; premises owned, occupied or used by the Consultant; or
automobiles owned, leased, hired or borrowed by the Consultant. The
coverage shall contain no special limitations on the scope of protection
afforded to the City, its officers, officials, employees or volunteers.
(2) For any claims related to this project, the Consultant's insurance coverage
shall be primary insurance as respects the City, its officers,. officials,
employees and volunteers. Any insurance or self-insured maintained by the
City, its officers, officials, employees or volunteers shall be excess of the
Consultant's insurance and shall not contribute with it.
(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The Consultant's insurance shall apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
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(5) Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
10. INDEPENDENT CONTRACfOR.
a. Consultant is and shall at all times remain as to the City a wholly independent
contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all
times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees or
agents shall have control over the conduct of Consultant or any of Consultant's officers, employees or agents,
except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any
of its officers, employees or agents are in any manner officers, employees or agents of the City. Consultant
shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in
any manner.
b. No employee benefits shall be available to Consultant in connection with the
performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City
shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City.
City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of
performing services hereunder.
11. LEGAL RESPONSmILITIES. The Consultant shall keep itself informed of State
and Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Consultant to comply with this section.
12. RELEASE OF INFORMATION.
a. All information gained by Consultant in performance of this Agreement shall be
considered confidential and shall not be released by Consultant without City's prior written authorization.
Consultant, its officers, employees, agents or subcontractors, shall not without written authorization from the
City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support,
testimony at depositions, response to interrogatories or other information concerning the work performed under
this Agreement or relating to any project or property located within the City. Response to a subpoena or court
order shall not be considered "voluntary" provided Consultant gives City notice of such court order or
subpoena.
b. Consultant shall promptly notify City should Consultant, its officers, employees,
agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for
documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any
party regarding this Agreement and the work performed thereunder or with respect to any project or property
located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present
at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide
City with the opportunity to review any response to discovery requests provided by Consultant. However,
City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite
said response.
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13. NOTICES. Any notices which either party may desire to give to the other party
under this Agreement must be in writing and may be given either by (I) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City of Temecula
Mailing Address:
P.O. Box 9033
Temecula, California 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Consultant:
KRW & Associates
P.O. Box 867
Murrieta, California 92564
Attention: Kris Winchak
(909) 245-0159
14. ASSIGNMENT. The Consultant shall not assign the performance of this Agreement, nor any
part thereof, nor any monies due hereunder, without prior written consent of the City. Because of the personal
nature of the services to be rendered pursuant to this Agreement, only Kris Winchak shall perform the
services described in this Agreement. Kris Winchak may use assistants, under their direct supervision, to
perform some of the services under this Agreement. Consultant shall provide City fourteen (14) days' notice
prior to the departure of Kris Winchak from Consultant's employ. Should he or she leave Consultant's
employ, the city shall have the option to immediately terminate this Agreement, within three (3) days of the
close of said notice period. Upon termination of this Agreement, Consultant's sole compensation shall be
payment for actual services performed up to, and including, the date of termination or as may be otherwise
agreed to in writing between the City Council and the Consultant.
15. LICENSES. At all times during the term of this Agreement, Consultant shall have in
full force and effect, all licenses required of it by law for the performance of the services described in this
Agreement.
16. GOVERNING 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. PROIImITED INTEREST. No member, officer, or employee of the City of
Temecula or of a local public body shall have any interest, direct or indirect, in the contract of the proceeds
thereof during his/her tenure or for one year thereafter.
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Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board
mernber, officer or employee of the City ofTemecula has any interest, whether contractual, non-contractual,
financial or otherwise, in this transaction, or in the business of the contracting party other than the City of
Temecula, and that if any such interest comes to the knowledge of either party at any time, a full and complete
disclosure of all such information will be made, in writing, to the other party or parties, even if such interest
would not be considered a conflict ofinterest under Article 4 (commencing with Section 1090) or Article 4.6.9
(commencing with Section 1220) of Division 4 of Title I of the Government Code of the State of California.
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 TIDS AGREEMENT. The person or persons
executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to
execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the
performance of its obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year first above written.
CITY OF TEMECULA
fbYl
By
Shawn D. Nelson, City Manager
Attest:
LJ
, City Clerk
~
Peter M. Thorson, City Attomey
CONSULTANT
KRW & Associates
P.O. Box 867
Murrieta, CA 92564
(909) 245-0159
By
'~~ R
, Kris Winchak. Owner
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EXIllBIT "A"
SCOPE OF WORK
And
PAYMENT SCHEDULE
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KRW & ASSOCIATES
Land Surveying, Planning and Land Development
P.O. Box 867
Murrieta, CA. 92564
Bus. (909) 245-0159, Fax (909) 245-0159
June 16, 2002
City ofTemecula, Dept. ofpublic Works
P.O. Box 9033
Temecula, Ca. 92589-9033
Attn. Ronald J. Parks, Deputy Director of Public Works
Subject:
Request to revise Agreement to perform Map Checking Services starting
July 1, 2002 for Fiscal Year 2002 - 2003
Dear Ron,
lbis letter is to request a change to my hourly rate for Map Plan Checking services with
the City of Temecula for the next Fiscal Year. If the City wishes to continue with my
services for the next Fiscal Year starting July I, 2002, the compensation for Professional
Services provided will be paid at a rate of Sixty dollars ($60.00) per hour on a project by
project basis, "Not To Exceed" the amount specified in the New Agreement.
The reason for this change is to bring the cornpensation up to the rate I have been
. charging for consulting services with other City Agencies 1 am working for, which
covers the costs associated with being a private consultant. I know that this hourly rate is
still below what the industry charges for these Professional Services and is a savings for
the:City of Temecula.
I 'am very pleased to be of service to the Department of Public Works and look forward to
. . a.continuation of our work relationship.
;-.1
V~P' Truly Yours,
~.i. '. . re r/~
7~
. ,I<ti(s R. Winchak, L.S. 6240
KRiW & Associates
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ITEM 1 0
APPROVAL if..,./
"un
CITY ATTORNEY I .r-.
DIRECTOR OF FINANC" .b<
CITY MANAGER .."
CITY OF TEMECULA
AGENDA REPORT
TO: City Manager/City Council
FROM: tN'~illiam G. Hughes, Director of Public Works/City Engineer
DATE: June 24, 2003
SUBJECT: Agreement with the Temecula Sunrise Rotary Club - Placement and
Maintenance of Bus Benches
PREPARED BY: Beryl Yasinosky, Management Analyst
RECOMMENDATION:
That the City Council:
1. Approve a 3-year Agreement with the Temecula Sunrise Rotary Club, a California non-
profit corporation, for the placement and maintenance of forty-three (43) bus benches
throughout the City in an amount of $12,000.00 for Fiscal Year 2003-04, authorize the
Mayor to execute the Agreement in substantially the form attached.
2. Authorize the City Manager to approve change orders not to exceed the contingency
amount of $1 ,200.00 which is equal to 10% of the Agreement amount.
BACKGROUND: The Temecula Sunrise Rotary Club ("Rotary Club") has installed and
maintained bus benches at various locations throughout the City since 1994. On June 27,
1997 the City Council entered into a 3-year agreement to lease forty-three (43) bus benches
from the Rotary Club for an annual sum of $12,000.00. In return, the Rotary Club agreed to
maintain, repair, clean, keep neat and safe and in a sanitary condition, all benches placed
pursuant to the Agreement.
Over the past three years, the Rotary Club has faithfully performed all services identified in the
Agreement and staff recommends that the City Council consider extending the Agreement for
another 3-year period. The terms and conditions are the same as the previous Agreement, a
copy of which is attached for your review.
Pursuant to the terms and conditions of the Agreement, the Rotary Club will continue to
maintain, repair and service the forty-three (43) bus benches depicted on Exhibit B of the
Agreement. The City will pay $12,000.00 annually for the maintenance of the bus benches and
$75.00 per quarter for each additional bus bench installed within the public right-of-way in
accordance with the Agreement. The Agreement also includes provisions for the frequency of
maintenance, placement and installation criteria, as well as general liability, automobile and
worker's compensation insurance requirements. The Agreement does not preclude the City
from installing other bus benches or shelters within the public right-of-way or on private
property.
R:lagdrptI0310624IBusBenchAgr.RotaryClub
FISCAL IMPACT: The cost associated with the terms of the aforementioned lease
agreement with the Temecula Sunrise Rotary Club for Fiscal Year 2003-04 is $12,000.00, plus
10% contingency amount of $1,200.00 for a total agreement amount of $13,200.00. Adequate
funds have been appropriated through the Public Works Department operating budget for Fiscal
Year 2003-04.
ATTACHMENTS:
Agreement for Placement and Maintenance of Bus Benches.
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AGREEMENT
CITY OF TEMECULA
AND
TEMECULA SUNRISE ROTARY FOUNDATION
FOR
BUS BENCHES PLACEMENT AND MAINTENANCE
TIDS AGREEMENT, made and entered into as of June 24, 2003 by and between the City of
Temecula, a municipal corporation ("City") and Temecula Sunrise Rotary Foundation, a California non-
profit corporation ("Rotary"). In consideration ofthe respective covenants and promises herein contained
and subject to all ofthe terms and conditions hereof, the parties hereby agree as follows:
1. Recitals. Rotary has installed and maintained bus benches within the City of Temecula
since 1994. City desires to enter into this Agreement in order to lease bus benches at various designated
bus stop locations throughout the City and to have Rotary maintain the bus benches.
2. Placement of Bus Benches within City. Rotary hereby agrees to provide and maintain
forty three (43) bus benches ("Bus Benches") within the City. The Bus Benches shall be of the style
depicted on Exhibit "A" and shall be placed by Rotary at the locations within the public right-of-way
designated on Exhibit "B". The Bus Benches shall contain no advertising or logos, other than City
provided City Seals, and shall be painted in color designated by the Director of Public Works and finished
with an anti-graffiti finish coat. City reserves the right to allow, install or place other bus benches or
transit shelters on public or private property. No additional Bus Benches shall be placed in the public
right-of-way without the approval of the Director of Public Works.
a.
Works Department.
Rotary must maintain an active City Encroachment Permit issued by the Public
3. Rotarv's Maintenance Services. Rotary agrees, at its own cost and expense to maintain,
repair, clean, keep neat and safe and in a sanitary condition, all benches placed pursuant to this
agreement. All such work shall be performed at the sole expense of Rotary. Each Bus Bench shall be
cleaned not less than one time a month as required to provide safe and clean benches. In the event the
Director of Public Works determines that a Bus Bench fails to comply with the requirements of this
Agreement or is otherwise in a state of disrepair or deferred maintenance, the Rotary shall remove such
Bus Bench within three (3) days of notice from the Director of Public Works and shall replace the Bus
Bench in accordance with the requirements of this Agreement within the time set by the Director. As an
exception to the foregoing removal requirement, the Director of Public Works may demand that the Bus
Benches may be removed within one (1) day of notice if he determines that the problem constitutes a
safety problem.
4. Lease Pavments. City shall pay to Rotary the annual sum of Twelve Thousand Dollars
and No Cents ($12,000.00) for the initial forty-three (43) Bus Benches described in this agreement. Said
annual payment shall be made in quarterly installments with the exception of the first payment identified
in paragraph "a", below. The City shall pay an additional Seventy-Five Dollars and No Cents ($75.00)
per quarter for each additional Bus Bench request that is placed and maintained by Rotary within the
public right-of-way in accordance with this Agreement. City shall pay such fee to Rotary within 30 days
of receipt of an invoice the first business day of each quarter, beginning July I, 2003.
a. The first payment made by the City to Rotary, beginning in Fiscal Year 2003-04,
shall include the first two quarterly installment payments (July 1,2003 and October I, 2003) in the sum
of Six Thousand Dollars and No Cents ($6,000.00). The remaining third and fourth installment
R:\agnnts\Masters\Miscagrt\rotary bus bench.#2
payments (January I, 2004 and April I, 2004) for Fiscal Year 2003-04, and aH subsequent lease payments
thereafter, shall be invoiced on a quarterly basis by Rotary, as identified in Section 4.
5. Term. The term of this Agreement shall commence as of July I, 2003, and shaH
continue for a term of three (3) years unless earlier terminated as hereafter provided.
6. Termination
a. This Agreement may be terminated by City upon fifteen (15) days' notice to Rotary if:
(1) Rotary fails to provide satisfactory evidence of renewal or replacement of comprehensive general
liability insurance in accordance with this Agreement at least twenty (20) days before the expiration date
of the previous policy; or (2) if Rotary is in breach of any material provision of this Agreement and fails
to cure said breach within twenty (20) days of written notice to Rotary of the breach.
b. City Manager may suspend this Agreement at any time upon finding that: (1) the Rotary
is in breach of a material term of this Agreement: and (2) said breach could cause an immediate adverse
affect upon the health or safety of members of the public.
c. If Rotary fails to maintain the Bus Benches as required by this Agreement, City may take
such action as is required to maintain the Bus Benches in the condition required by this Agreement. In
such event City shall deduct all costs incurred by the City to provide such maintenance from the lease
payment described in Section 3 of this Agreement.
d. In addition to the above, the City may terminate this agreement without cause with one
year's notice. In the event the City is not able to provide one year's notice, the City will pay Rotary the
prorated portion of the remaining year.
7. Bus Bench Removal. Upon expiration or termination of this Agreement, Rotary shall
immediately remove all Bus Benches. If Rotary does not remove all Bus Benches within thirty (30) days
after notice to remove they shall be deemed abandoned and City shall have the right to remove the
remaining Bus Benches and dispose of them, in which event Rotary shall pay all costs of removal and site
restoration.
8. Insurance. Rotary shall procure and maintain for the duration of this Agreement,
insurance against claims for injuries to persons or damages to property which may arise from or in
connection with its work pursuant to this Agreement.
(I) Minimum Scope of Insurance. Coverage shall be at least as broad as the
following coverages and any updated insurance industry standard policies:
(a) Insurance Services Office Commercial General Liability coverage
provided ISO-CGL Form No. CG 00 I II 85 or 88.
(b) Insurance Services Office Business Auto Coverage form CA 00 0 I 06 92
covering Automobile Liability, code I (any auto). If Rotary owns no
automobiles, a non-owned auto endorsement to the General Liability policy
described above is acceptable.
(c) Worker's Compensation insurance as required by the State of Cali fomi a
and Employer's Liability Insurance.
(2) Minimum Limits of Insurance. Rotary shall maintain limits no less than:
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(a) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other
form with a general aggregate limit is used, either the general aggregate limit
shan apply separately to this project/location or the general aggregate limit shall
be twice the required occurrence limit. The general liability policy shan include
non-owned liability insurance.
(b) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(c) Employer's Liability: $1,000,000 per accident for bodily injury or
disease.
(3) Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City Manager.
(4) Other Insurance Provisions. The general liability and automobile liability
policies are to contain, or be endorsed to contain, the following provisions:
(a) The City, its officers, officials, employees and designated volunteers are
to be covered as insureds as respects: liability arising out of activities performed
by or on behalf of the Rotary; products and completed operations of the Rotary;
automobiles owned, leased, hired or borrowed by the Rotary. The coverage shall
contain no special limitations on the scope of protection afforded to the City, its
officers, officials, employees or volunteers.
(b) For any claims related to this project, the Rotary's insurance coverage
shan be primary insurance as respects the City, its officers, officials, employees
and volunteers. Any insurance or self-insured maintained by the City, its
officers, officials, employees or volunteers shan be excess of the Rotary's
insurance and shan not contribute with it.
(c) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the City,
its officers, officials, employees or volunteers.
(d) The Rotary'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.
(e) Each insurance policy required by this clause shall be endorsed to state
that coverage shall not be suspended, voided, cancelled by either party, reduced
in coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
(5) Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating of no less than A:VIl, unless otherwise acceptable to the City.
(6) Verification of Coverage. Rotary 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 or ISO form CG 20 10 II 85. An
endorsements are to be received and approved by the City before use commences. As an
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alternative to the City's forms, the Rotary's insurer may provide complete, certified
copies of all required insurance policies, including endorsements effecting the coverage
required by these specifications. Rotary shall not be entitled to use the Premises until all
required insurance documents are on file with the Director of Finance.
(7) Failure to Comolv with Insurance Requirements. In the event the Rotary fails to
submit required documentation for insurance to the Director of Finance within the times
required by this Agreement or the Director of Finance receives notice or is made aware of
the termination of any required insurance policy, the City Manager may immediately
suspend this Agreement and shall cause a notice of default to be issued to the Rotary.
9. Rotary Indemnification of Citv. Rotary agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, and employees 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, its officers, agents and persons, or damage to property arising out of the
negligent or wrongful acts or omissions of Rotary, its officers, employees, or agents arising out of or in
any way related to the performance or non-performance under this Agreement, excepting only liability
attributable to the negligent or wrongful conduct of the City.
10. Lel!al Resnonsibilities. Rotary shall keep fully informed of all Federal, State and local
laws, regulations and ordinances that in any manner affect those employed by or in any way affect or
govern the performance of services pursuant to this Agreement. Rotary shall at all times observe and
comply with all such laws, regulations and ordinances.
11. Reoresentatives and Notices. City's Director of Public Works shall be the
representative of City for purposes of this Agreement and may issue all consents, approvals, directives, or
agreements on behalf of the City called for by this Agreement except as otherwise expressly provided in
this Agreement. The President of Rotary shall designate in writing the representative of Rotary for
purposes of coordinating Rotary's work under this Agreement and to serve as Rotary's agent for
obtaining compliance with the terms of this Agreement and to serve as Rotary's agent for obtaining
compliance with the terms of this Agreement. Notices and written communications sent by one party to
the other shall be personally delivered or sent by certified or registered U.S. Mail, return receipt
requested, postage prepaid, or a reliable overnight delivery service, such as but not limited to Federal
Express, to the following address (or such other addresses as may be designated by notice given in
accordance with this paragraph):
If to City, to:
City of Temecula
Post Office Box 9033
43200 Business Park Drive
Temecula, CA 92589-9033
Attn: Director of Public Works
If to Rotary:
Charles X. Delgado, President
Temecula Sunrise Rotary Foundation
27349 Jefferson, Ste. 105
Temecula, CA 92590
Phone: (909) 296-0399
FAX: (909) 296-0499
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Notice shall be deemed received upon actual receipt of the notice or three (3) business
days following deposit in one ofthe approved transmission methods.
12.
the City.
Indeuendent Contractor. Rotary is an independent contractor and not an employee of
13. Assil!nabilitv. Rotary shall not assign or transfer any interest in this Agreement whether
by assignment or novation, without prior written consent of the City Council. Any purported assignment
without such consent shall be void and without effect.
14. Governinl! Law. This Agreement shall be governed by and construed m
accordance with the laws of the State of California.
15. Entire Al!reement. This Agreement supersedes any and all other agreements, permits or
City approvals, either oral or in writing, between the parties hereto with respect to the subject matter
hereof and contains all of the covenants and agreements between the parties hereto with respect to the
subject matter hereof and contains all of the covenants and agreements between the parties with respect to
said matter, and each party this Agreement acknowledges that no representation, inducements, promises
or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party,
which are not embodied herein, and that any other agreement shall be effective only if executed in writing
and signed by both City and Rotary.
16. Third Party Ril!hts. No third party shall be deemed to have any rights hereunder against
any of the parties as a result of this Agreement.
17. Waiver of Breach. No breach of any provision of this Agreement can be waived unless
the waiver is in writing. Waiver of anyone breach of a provision shall not be deemed to be a waiver of
any other breach of the same or any other provision of this Agreement.
18. Attornev's Fees. Should any dispute under this Agreement lead to litigation, the
prevailing party in litigation shall be entitled to reasonable attorney's fees and litigation expenses incurred
with respect to the dispute and prosecution of the action.
5
R:\agnnts\Masters\M.iscagrt\rotary bus bench.#2
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and
year first above written.
TEMECULA SUNRISE ROTARY FOUNDATION,
A California non-profit corporation
By:
Print Name:
Print Title:
By:
Print Name:
Print Title:
CITY OF TEMECULA,
A municipal corporation
Jeffrey E. Stone, Mayor
Approved as to Form:
Peter M. Thorson, City Attorney
ATTEST:
Susan W. Jones, CMC, City Clerk
6
R:\agrmts\Masters\Miscagrt\rotary bus bench.#2
EXHIBIT A
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ITEM 11
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINA C
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO: City Manager/City Council
FROM: 'VJ~ William G. Hughes, Director of Public Works/City Engineer
DATE: June 24, 2003
SUBJECT: Annual Professional Services Agreements for Real Estate Appraisal Services
for Various Capital Improvement Projects for FY 2003-2004
PREPARED BY:
Amer Attar, Principal Engineer - Capital Projects
Laura Bragg, Project Engineer - Capital Projects
RECOMMENDATION:
That the City Council:
1. Approve an agreement with Robert Shea Perdue Real Estate Appraisal in the amount of
$60, 000.00 to provide as needed real estate appraisal services; and
2. Approve an agreement with Mason & Mason Real Estate Appraisers & Consultants in the
amount of $60,000 to provide as needed real estate appraisal services; and
3. Authorize the Mayor to execute the agreements.
BACKGROUND: There are various projects described in the approved Capital
Improvement Program for Fiscal Years 2004 to 2008 that will require real estate appraisal services.
The attached agreements are to provide as needed services and these services will be utilized on
projects that are approved in the Capital Improvement Program or for special projects that come up
through out the year.
Two firms have been selected for annual agreements so that the City is assured that at least one
firm will be available when needed. Once the annual agreement is executed, each service request
will be negotiated separately and may contain some or all of the following services:
. Research and/or review Tille Reports.
. Prepare necessary surveys and identify existing right-of-ways.
. Prepare description of properties including, but not limited to, present use, zoning, shape
contour and elevations, utilities, etc.
. Prepare necessary legal descriptions, exhibits and any other miscellaneous services for
acquisition purposes.
. Provide assistance to the City, as necessary, to acquire right-of-way, preparation of easement
documents, permission to enter/grade letters, etc.
. Appraise properties for the purpose of estimating market value and provide appraisal reports.
The actual number of projects and costs are not known at this time. Payment will be based upon
actual time spent on tasks as directed by the Director of Public Works/City Engineer.
R:\AGENDA REPORTS\2003\062403\ANNUAL CONTRACT Appralsal.AGR.OOC
The actual number of projects and costs are not known at this time. Payment will be based upon
actual time spent on tasks as directed by the Director of Public Works/City Engineer.
FISCAL IMPACT: The Consultant will submit a cost proposal for each service request. Once a
scope of service and a schedule of fees are negotiated, funds are allocated from the corresponding
project budget. Only approved CIP projects will utilize the services under these agreements, unless
directed otherwise by the City Manager or City Council.
ATTACHMENTS:
1. Agreement with Robert Shea Perdue Real Estate Appraisal
2. Agreement with Mason & Mason Real Estate Appraisers & Consultants
2
R:\AGENDA REPORTS\2Q03\062403\ANNUAL CONTRACT Appraisal.AGR.DOC
CITY OF TEMECULA
ANNUAL AGREEMENT
FOR
PROFESSIONAL REAL ESTATE APPRAISAL SERVICES
FOR
FISCAL YEAR 2003-2004
THIS AGREEMENT, is made and effective as of June 24, 2003, between the City of
Temecula, a municipal corporation ("City") and Robert Shea Perdue Real Estate Appraisal,
("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 1,2003, and shall remain
and continue in effect until June 30, 2004, unless terminated or extended pursuant to the provisions
of this Agreement.
2. SERVICES. This is an annual contract for Real Estate Appraisal Services
on an as needed basis. Consultant can perform any of the services and tasks described and set
forth in Exhibit A, attached hereto and incorporated herein as though set forth in full.
When there is a need for Real Estate Appraisal Services on an as needed services,
the City will identify the specific scope of work, and request a fee schedule from the consultant. The
City will instruct the consultant to proceed with the work once the exact scope of work and the
associated fees are negotiated.
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. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the
Labor Code of the State of California, the City Council has obtained the general prevailing rate of
per diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of workman needed to execute this Contract from the Director of the
Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be
obtained at cost at the City Clerk's office of T emecula. Consultant shall provide a copy of prevailing
wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as a
minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code,
Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion
thereof, each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates
for any work done under this contract, by him or by any subcontractor under him, in violation of the
provisions of the Contract.
5. PAYMENT.
a. The City agrees to pay Consultant monthly, in accordance with the payment rates
and terms and the schedule of payment as negotiated and 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 tasks as directed by the City on an as needed basis. Any
terms in Exhibit B other than the payment rates are null and void. The total cumulative annual
amount shall not exceed Sixty Thousand Dollars and No Cents ($60,000.00) for the total term of
the Agreement unless additional payment is approved as provided in this Agreement.
1
r:lagnnts\masterslannual contract2003-04\perdue appraisal FY03.Q4lajp
b. Consultant shall not be compensated for any services rendered in connection
with its performance of this Agreement unless such additional services are authorized in advance
and in writing by the City. Consultant shall be compensated for services in the amounts and in the
manner as agreed to by the Director of Public Works/City Engineer and Consultant at the time City's
written authorization is given to Consultant for the performance of said services. Any additional work
in excess of the amount above shall be approved by the City Council.
c. Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted between the first and fifteenth business day of each month, for services
provided in the previous month. Payment shall be made within thirty (30) days of receipt of each
invoice as to all nondisputed fees. If the City disputes any of consultant's fees it shall give written
notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the
invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or
terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10)
days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all
work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates
a portion of this Agreement such suspension or termination shall not make void or invalidate the
remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City
shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4.
7. DEFAULT OF CONSULTANT.
a. The Consultant's failure to comply with the provisions of this Agreement shall
constitute a default. In the event that Consultant is in default for cause under the terms of this
Agreement, City shall have no obligation or duty to continue compensating Consultant for any work
performed after the date of default and can terminate this Agreement immediately by written notice
to the Consultant. If such failure by the Consultant to make progress in the performance of work
hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of
the Consultant, it shall not be considered a default.
b. If the City Manager or his delegate determines that the Consultant is in default
in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant
with written notice of the default. The Consultant shall have (10) days after service upon it of said
notice in which to cure the default by rendering a satisfactory performance. In the event that the
Consultant fails to cure its default within such period of time, the City shall have the right,
notwithstanding any other provision of this Agreement, to terminate this Agreement without further
notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under
this Agreement.
8. 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 identi-
fied 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
2
r.lagrmts\masterslannual contract2003-o4\perdue appraisal FY03-o4lajp
audit said books and records, shall permit City to make transcripts therefrom as necessary, and
shall allow inspection of all work, data, documents, proceedings and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a period of
three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this
Agreement, all original documents, designs, drawings, maps, models, computer files 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.
c. With respect to the design of public improvements, the Consultant shall not
be liable for any injuries or property damage resulting from the reuse of the design at a location
other than that specified in Exhibit A without the written consent of the Consultant.
9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect
and hold harmless the City, its officers, officials, employees and volunteers from and against any
and all claims, demands, losses, defense costs or expenses, including attorney fees and expert
witness fees, or liability of any kind or nature which the City, its officers, agents and employees may
sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to
property arising out of Consultant's negligent or wrongful acts or omissions 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.
10. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for
the duration of the contract insurance against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work hereunder by the
Consultant, its agents, representatives, or employees.
a. Minimum Scope of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability form
No. CG 00 01 11 85 or 88.
(2) Insurance Services Office Business Auto Coverage form CA 00 01
06 92 covering Automobile Liability, code 1 (any auto). If the
Consultant owns no automobiles, a non-owned auto endorsement to
the General Liability policy described above is acceptable.
(3) Worker's Compensation insurance as required by the State of
Califomia 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.
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r:\agnntslmaslers\annual contract2003-04\perdue appraisal FY03-04\ajp
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 accidentfor
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 must be declared to and approved by the City Manager. At the option of the City
Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and defense
expenses.
d. Other Insurance Provisions. The general liability and automobile liability
policies are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the Consultant; products and completed
operations of the Consultant; premises owned, occupied or used by
the Consultant; or automobiles owned, leased, hired or borrowed by
the Consultant. The coverage shall contain no special limitations on
the scope of protection afforded to the City, its officers, officials,
employees or volunteers.
(2) For any claims related to this project, the Consultant's insurance
coverage shall be primary insurance as respects the City, its officers,
officials, employees and volunteers. Any insurance or self-insured
maintained by the City, its officers, officials, employees or volunteers
shall be excess of the Consultant's insurance and shall not contribute
with it.
(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to
the City, its officers, officials, employees or volunteers.
(4) The Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect to
the limits of the insurer's liability.
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(5) Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail, return receipt requested,
has been given to the City.
e. Acceptability of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self
insurance shall not be considered to comply with these insurance requirements.
f. Verification of Coveraae. 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 altemative to the City's forms, the Consultant's insurer may provide
complete, certified copies of all required insurance policies, including endorsements effecting the
coverage required by these specifications.
11. 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.
12. 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.
13. 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.
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b. Consultant shall promptly notify City should Consultant, its officers,
employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of
deposition, request for documents, interrogatories, request for admissions or other discovery
request, court order or subpoena from any party regarding this Agreement and the work performed
thereunder or with respect to any project or property located within the City. City retains the right,
but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar
proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to
review any response to discovery requests provided by Consultant. However, City's right to review
any such response does not imply or mean the right by City to control, direct, or rewrite said
response.
14. 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, retum 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.
To City:
City of T emecula
Mailing Address:
P.O. Box 9033
Temecula, California 92589-9033
To Consultant:
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
Robert Shea Perdue Real Estate Appraisal
41919 Moreno Road, Suite A
Temecula, California 92590
Attention: Robert S. Perdue, MAl
15. ASSIGNMENT. The Consultant shall not assign the performance of this
Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the
City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for
actual services performed up to, and including, the date of termination or as may be otherwise
agreed to in writing between the City Council and the Consultant.
16. 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.
17. GOVERNING LAW. The City and Consultant understand and agree that the
laws of the State of California shall govem the rights, obligations, duties and liabilities of the parties
to this Agreement and also govem 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
judgement, shall be entitled to reasonable attorney fees and litigation expenses for the relief
granted.
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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 orwritten, 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. PROHIBITED INTEREST. No member, officer, or employee of the City of
Temecula or of a local pUblic body shall have any interest, direct or indirect, in the contract of the
proceeds thereof during his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their
knowledge that no board member, officer or employee of the City of Temecula has any interest,
whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of
the contracting party other than the City of Temecula, and that if any such interest comes to the
knowledge of either party at any time, a full and complete disclosure of all such information will be
made, in writing, to the other party or parties, even if such interest would not be considered a conftict
of interest under Article 4 (commencing with Section 1090) or Article 4.6 9commencing with Section
1220) of Division 4 of Title I of the Govemment Code of the State of Califomia.
20. 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF TEMECULA
Ron Roberts, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONSULTANT
Robert Shea Perdue Real Estate Appraisal
41919 Moreno Rd, Suite A
Temecula, CA 92590
(909) 694-6904
Robert S. Perdue, MAl
By:
Name:
Title:
(Signatures of two corporate officers required for Corporations)
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EXHIBIT A
TASKS TO BE PERFORMED
AND
PAYMENT RATES
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RESPONSES TO GENERAL REQUIREMENTS
1. (1) A brief description of the consu1tingjirm, (2) organization structure, (3) location of
principal offices, (4) number of professional personnel, and (5) other pertinent
information, including the names of all staff members who will work on the project.
(1) ROBERT SHEA PERDUE REAL EST A TE APPRAISAL is based in Temecula and
is the largest real estate valuation firm in Riverside County. The firm specializes in
eminent domain for mostly Riverside County municipalities.
(2) ROBERT SHEA PERDUE REAL ESTATE APPRAISAL is a sole proprietorship
owned by Robert Shea Perdue.
(3) ROBERT SHEA PERDUE REAL ESTATE APPRAISAL
41919 Moreno Road, Suite A
Temecula, CA 92590
Phone: (909) 694-6904
Fax: (909) 694-6964
(4) Five full time; one part time
(5) Robert Shea Perdue
Mark Routh
Brad Bassi
Brenda Greengard
Katrina Loughrey
Richard Russell
2. The name and relevant experience of the principal or project manager in the jirm who will
have direct and continued responsibility for the project. This person will be the City's
contact on all matters dealing with the project and will handle all day-to-day activities
through to completion.
Robert Shea Perdue directs litigation, eminent domain and agricultural appraisals,
office operations, professional ethics and quality control. Mr. Perdue has a breadth
of knowledge in agricultural, special use, eminent domain and litigation valuation.
As a 43-year resident ofInland Southern California, he also has a distinct familiarity
with the local market.
Mr. Perdue obtained a Bachelor of Science degree from San Diego State University
and has completed post-graduate work in Real Estate Appraisal and Demographics.
He maintains a California Real Estate Brokers license, has been awarded the MAl
designation from the Appraisal Institute, is the past president ofInternational Right-
of-Way Association and is an active member of the American Society of Farm
Managers and Rural Appraisers. Mr. Perdue's qualifications are attached.
Response to RFQ - FY 2003-2004
Page 1
Please contact Bob Perdue, the owner, on all matters dealing with this contract and
any projects which result from this contract. His phone number is (909) 694-6904.
3. The names of any outside consultants and/or sub-contractors to be utilized, include a brief
description of theirrole on the project, and an organizational chart. The intent of the City
is to have the firm receiving this requestfor qualifications perform the bulk of the work
to be covered by the annual agreement. Subconsulting will only be allowed in limited
situations.
None anticipated.
4. The consultant's understanding of the purpose of the annual agreement and the proposed
approach to do the work.
Real estate appraisal services.
5. A detailed list of the items of work to be performed by the consultant.
STANDARD APPRAISAL METHODOLOGY AND REPORT
IDENTIFICATION AND SUMMARY
Cover Letter
Certificate of Appraiser
Summary of Conclusions
Narrative Report:
Item I - Owner
Item 2 - Address (or location) of Subject Property
Item 3 - Legal Description
Item 4 - Delineation of Title
Item 5 - Purpose of Appraisal and Function
Item 6 - Summary of Appraisal Problems (and Scope)
DESCRIPTION
I. Assumptions and Limiting Conditions
2. Neighborhood Location and Description
3. Description of Subject Property
A. Present Use
B. Accessibility and Road Frontages
C. Land Contour and Elevations
Response to RFQ - FY 2003-2004
Page 2
D. Land Area
E. Land Shape
F. Utilities
G. Present Zoning
H. Highest and Best Use of Land if Vacant
1. Improvements
J. Specialty Items
K. Real Estate Taxes
L. Assessments
M. Existing Lease or Rental Data
N. Highest and Best Use Improved and As Vacant
4. Valuation of Property
A. Site Analysis and Evaluation
I. Cost Approach
a. Land analysis
b. Improvement analysis
2. Sales Comparison Approach
a. General Discussion
I) Relationships
2) Sales that are Comparable
b. Comparative Analysis
c. Correlation and Conclusion by Comparative
Approach
3. Income Approach
a. Data
b. Analysis
c. Correlation and Conclusion by Income Approach
4. Correlation and Final Conclusion
B. Approaches to Value
1. Cost Approach
a.
b.
Cost New
Accrued Depreciation
Response to RFQ - FY 2003-2004
Page 3
c. Land Value
d. Indicated Value by Cost Approach
2. Comparative [Market Data] Approach
a. General Discussion
I) Relationships
2) Sales that are Comparable
b. Comparative Analysis
I) Whole Property Comparisons
2) Comparative Units
c. Correlation and Conclusion, Comparative [Market
Data] Approach
3. Income Approach
a. Data
b. Analysis
c. Correlation and Conclusion, Income Approach
C. Correlation of Value Indications from All Approaches
The specific process of the consultant's approach to most condemnation projects is as
follows:
Pre-Valuation
. Meet with the client to review and discuss project overview.
. Review existing or proposed project.
. Review CEQA and other reports on proposed or existing project.
. Review proposed time frame for project completion as well as intermediate
meetings and deadlines.
. Review client concerns on proposed acquisitions (relative to property owner's
accommodations).
. Request a copy of title report.
Response to RFQ - FY 2003-2004
Page 4
. Send letters of introduction to property owners for initial property owner
contact.
Valuation
. Meet with property owner and/or representative to inspect the property and
understand the property owners concerns about acquisition and the project's
impact on the owner's property. Also, introduce any selected consultants at
this meeting for inspection and investigation of a) soils, b) land use potential,
c) engineering, d) consideration of water well improvements, e) consideration
of agricultural improvements, f) consideration of unusual or non-conforming
structural improvements.
. IdentifY real estate, property rights and appraisal problem.
. Commence preliminary data survey including complete inspection and
verification of all land sales, improved sales (including agricultural
improvements), and rental comparables (if applicable).
. Proceed with analysis including general data on region, city and
neighborhood as well as local and regional economic trends. Proceed with
specific data collection on subject property including review of title report,
site conditions, building conditions (review public records, building and
safety records, assessors data (if permitted) and any other concerns relative
to environmental constraints such as endangered species, wetlands, habitat,
blueline streams (Department of Fish and Game, Army Corps of Engineers,
and Fish and Wildlife etc.), hazardous materials, etc.
. Estimate highest and best use as vacant and as improved.
. Valuation of the larger parcel relative to the three approaches to value.
. Reconciliation of value.
. Final estimation of value.
. If applicable - analysis and valuation of part to be acquired and consideration
of Severance Damages, General and Benefits; writing of report.
The standard narrative appraisal report (Limited, Restricted; Complete, Summary or
Complete, Self-Contained) will be organized and formatted according to the
guidelines ofUSP AP, Appraisal Institute, California Code of Civil Procedure and
Uniform Appraisal Standards for Federal Land Acquisitions.
Response to RFQ - FY 2003-2004
Page 5
6. Resumes of all prime and sub-consultant personnel that will work on the annual
agreement.
Robert Shea Perdue Real Estate Appraisal personnel qualifications attached.
7. Examples of each consultant's recent relevant experience with client references.
References - Recent Public Agency and Dairy Clients
Mr. Rich Edmond
Chief Appraiser
County of Orange
300 N. Flower Street
PO Box 4048
Santa Ana, CA 92702-4048
(714) 834-5070
1996 - Present
1991 - 1994
Valuation Assignments: Eleven dairies, one pig and sheep ranch, two alfalfa ranches, hay
lot and truck terminal, cattle auction yard, real estate brokerage office and several large farm
parcels. All partial and full acquisitions for flowage easement interests - Prado Dam
Project. Contract value - $30,000, $60,000 and $120,000.
Mr. A. Louis Schnepp, AS A, CRA
Appraisal Manager
County of San Bernardino
825 E. Third Street
San Bernardino, CA 92415
(909) 387-2774
1990 - Present
Valuation Assignments: Full acquisitions by the County of San Bernardino: two horse
ranches, parcels of vacant land, eight dairies, four calf ranches, flooding value diminution
study and a nudist resort. Contract value approximately $100,000.
Mr. Chuck Hale
Executive Director
So. Cal. Ag. Land Foundation
(County of San Bernardino)
13839 Bon View Avenue
Chino, CA 91710
(909) 464-0186
1990 - Present
1983 - 1987
Valuation Assignments: Various full acquisition appraisals for dairies, ranches and vacant
land. Contract value approximately $90,000.
Also completed numerous appraisal assignments for Mr. Hale when he was the Assistant
City Manager for the City of Vista (Community Developrnent Director - 1983 to 1987).
Response to RFQ - FY 2003-2004
Page 6
Assignments included nurnbered several hundred full and partial acquisitions relative to
commercial, industrial and residential properties for street widening, utility easements and
floodway channels; single and multiple partial acquisitions. Contract value in excess of
$200,000.
Ms. Janet Parks
Real Property Agent
County of Riverside
Department of Building Services
3133 Mission Inn Avenue
Riverside, California 92507-4199
(909) 955-9275
1996 - Present
Valuation Assignments: Over one dozen eminent domain assignments including Highway
74 (72 parcels) right-of-way project. Contract value approximately $80,000.
Murrieta Water District
42290 Ivy
Murrieta, CA 92562
(909) 677-7667
1995 - Present
Valuation Assignments: Easement acquisitions for water transmission lines - partial
easement acquisition and full acquisition of well and pump. Assessment District appraisals.
Contract value approximately $40,000.
Riverside County Flood Control
1995 Market Street
Riverside, CA 92501-1719
(909) 788-9965
1996 - Present
Valuation Assignments: Commercial site in floodway, industrial lot in flood zone, floodway
acquisition through horse ranch and 83 properties in flood plain. Contract value
approximately $45,000.
Valuation Assignments - Other Clients
1991 - Present
-City of Temecula - Redevelopment Agency
-City of Murrieta - Engineering Department
-Rancho California Water District
-Internal Revenue Service
-Best, Best & Krieger, LLP
-Orange County Water District
Please refer to Robert Shea Perdue's Qualifications for additional client listings.
Response to RFQ - FY 2003-2004
Page 7
Valuation Assignments - Summary
Since 1978 have appraised thousands of properties in Southern California for erninent
domain acquisition and litigation. Property types range from residential and vacant land to
commercial and industrial. Partial acquisitions include street, utility, flood, avigation and
conservation easements.
8. Current billing rate sclledule.
Appraisals are quoted and billed on a lump sum case-by-case basis. Should additional
appraisers' time be required for updated estimates of value, attorney/client conferences,
deposition or expert witness testimony, this time will be billed at our standard rates of$175
and $250 per hour, respectively.
9. An autllorized official of tile consulting firm sllall sign tile statement of Qualifications.
10. Tile Statement of Qualifications sllall be validfor a minimum of ninety (90) days.
11. Consultant is obligated to provide evidence of insurance liability and abide by tile City's
Risk Management Procedures in accordance witll Exllibit "A".
Declarations or certificates of insurance for our general liability, automobile liability,
worker's compensation and professional liability policies are attached.
12. Consultant will maintain required professional licenses and registration during tile life
of tile Contract witll tile City.
Robert S. Perdue currently holds the MAl appraisal designation, is a licensed general
appraiser and is a licensed real estate broker.
Respectfully submitted,
ROBERT SHEA PERDUE REAL ESTATE APPRAISAL
f2 ~1f). /3/'~
Robert S. Perdue, MAl
Response to RFQ - FY 2003-2004
Page 8
EXHIBIT B
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CITY OF TEMECULA
ANNUAL AGREEMENT
FOR
PROFESSIONAL REAL ESTATE APPRAISAL SERVICES
FOR
FISCAL YEAR 2003-04
THIS AGREEMENT, is made and effective as of June 24, 2003, between the City of
Temecula, a municipal corporation ("City") and Mason & Mason Real Estate Appraisers &
Consultants, ("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, 2003, and shall remain
and continue in effect until June 30, 2004, unless terminated or extended pursuant to the provisions
of this Agreement.
2. SERVICES. This is an annual contract for Real Estate Appraisal Services
on an as needed basis. Consultant can perform any of the services and tasks described and set
forth in Exhibit A, attached hereto and incorporated herein as though set forth in full.
When there is a need for Real Estate Appraisal Services on an as needed services,
the City will identify the specific scope of work, and request a fee schedule,from the consultant. The
City will instruct the consultant to proceed with the work once the exact scope of work and the
associated fees are negotiated.
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. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the
Labor Code of the State of California, the City Council has obtained the general prevailing rate of
per diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of workman needed to execute this Contract from the Director of the
Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be
obtained at cost at the City Clerk's office of Temecula. Consultant shall provide a copy of prevailing
wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as a
minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code,
Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion
thereof, each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates
for any work done under this contract, by him or by any subcontractor under him, in violation of the
provisions of the Contract.
5. PAYMENT.
a. The City agrees to pay Consultant monthly, in accordance with the payment rates
and terms and the schedule of payment as negotiated and as set forth in Exhibit 8, 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 tasks as directed by the City on an as needed basis. Any
terms in Exhibit B other than the payment rates are null and void. The total cumulative annual
amount shall not exceed Sixty Thousand Dollars and No Cents ($60,000.00) for the total term of
the Agreement unless additional payment is approved as provided in this Agreement.
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b. Consultant shall not be compensated for any services rendered in connection
with ;ts performance of this Agreement unless such additional services are authorized in advance
and in writing by the City. Consultant shall be compensated for services in the amounts and in the
manner as agreed to by the Director of Public Works/City Engineer and Consultant at the time City's
written authorization is given to Consultant for the performance of said services. Any additional work
in excess of the amount above shall be approved by the City Council.
c. Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted between the first and fifteenth business day of each month, for services
provided in the previous month. Payment shall be made within thirty (30) days of receipt of each
invoice as to all nondisputed fees. If the City disputes any of consultant's fees it shall give written
notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the
invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or
terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10)
days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all
work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates
a portion of this Agreement such suspension or termination shall not make void or invalidate the
remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City
shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4.
7. DEFAULT OF CONSULTANT.
a. The Consultant's failure to comply with the provisions of this Agreement shall
constitute a default. In the event that Consultant is in default for cause under the terms of this
Agreement, City shall have no obligation or duty to continue compensating Consultant for any work
performed after the date of default and can terminate this Agreement immediately by written notice
to the Consultant. If such failure by the Consultant to make progress in the performance of work
hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of
the Consultant, it shall not be considered a default.
b. If the City Manager or his delegate determines that the Consultant is in default
in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant
with written notice of the default. The Consultant shall have (10) days after service upon it of said
notice in which to cure the default by rendering a satisfactory performance. In the event that the
Consultant fails to cure its default within such period of time, the City shall have the right,
notwithstanding any other provision of this Agreement, to terminate this Agreement without further
notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under
this Agreement.
8. 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 identi-
fied 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
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audit said books and records, shall permit City to make transcripts therefrom as necessary, and
shall allow inspection of all work, data, documents, proceedings and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a period of
three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this
Agreement, all original documents, designs, drawings, maps, models, computer files 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.
c. With respect to the design of public improvements, the Consultant shall not
be liable for any injuries or property damage resulting from the reuse of the design at a location
other than that specified in Exhibit A without the written consent of the Consultant.
9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect
and hold harmless the City, its officers, officials, employees and volunteers from and against any
and all claims, demands, losses, defense costs or expenses, including attorney fees and expert
witness fees, or liability of any kind or nature which the City, its officers, agents and employees may
sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to
property arising out of Consultant's negligent or wrongful acts or omissions 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.
10. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for
the duration of the contract insurance against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work hereunder by the
Consultant, its agents, representatives, or employees.
a. Minimum Scope of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability form
No. CG 00 01 11 85 or 88.
(2) Insurance Services Office Business Auto Coverage form CA 00 01
06 92 covering Automobile Liability, code 1 (any auto). If the
Consultant owns no automobiles, a non-owned auto endorsement to
the General Liability policy described above is acceptable.
(3) Worker's Compensation insurance as required by the State of
California and Employer's Liability Insurance. If the Consultant has no
employees while performing under this Agreement, worker's
compensation insurance is not required, but Consultant shall execute
a declaration that it has no employees.
(4) Professional Liability Insurance shall be written on a policy form
providing professional liability for the Consultant's profession.
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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 Califomia;
Employer's Liability: One million dollars ($1 ,000,000) peraccidentfor
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 must be declared to and approved by the City Manager. At the option of the City
Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and defense
expenses.
d. Other Insurance Provisions. The general liability and automobile liability
policies are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the Consultant; products and completed
operations of the Consultant; premises owned, occupied or used by
the Consultant; or automobiles owned, leased, hired or borrowed by
the Consultant. The coverage shall contain no special limitations on
the scope of protection afforded to the City, its officers, officials,
employees or volunteers.
(2) For any claims related to this project, the Consultant's insurance
coverage shall be primary insurance as respects the City, its officers,
officials, employees and volunteers. Any insurance or self-insured
maintained by the City, its officers, officials, employees or volunteers
shall be excess of the Consultant's insurance and shall not contribute
with it.
(3) Anyfailure to comply with reporting or other provisions ofthe policies
including breaches of warranties shall not affect coverage provided to
the City, its officers, officials, employees or volunteers.
(4) The Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect to
the limits of the insurer's liability.
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Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail, return receipt requested,
has been given to the City.
e. Acceotabilitv of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self
insurance shall not be considered to comply with these insurance requirements.
(5)
f. Verification of Coveraae. 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 altemative to the City's forms, the Consultant's insurer may provide
complete, certified copies of all required insurance policies, including endorsements effecting the
coverage required by these specifications.
11. 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.
12. 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.
13. 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.
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b. Consultant shall promptly notify City should Consultant, its officers,
employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of
deposition, request for documents, interrogatories, request for admissions or other discovery
request, court order or subpoena from any party regarding this Agreement and the work performed
thereunder or with respect to any project or property located within the City. City retains the right,
but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar
proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to
review any response to discovery requests provided by Consultant. However, City's right to review
any such response does not imply or mean the right by City to control, direct, or rewrite said
response.
14. 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.
To City:
City of Temecula
Mailing Address:
P.O. Box 9033
Temecula, California 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Consultant:
Mason & Mason Real Estate Appraisers & Consultants
2609 Honolulu Avenue, Suite 100
Montrose, California 91020-1706
Attention: Frances Wolfe Mason, MAl
15. ASSIGNMENT. The Consultant shall not assign the performance of this
Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the
City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for
actual services performed up to, and including, the date of termination or as may be otherwise
agreed to in writing between the City Council and the Consultant.
16. 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.
17. 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 conceming
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
judgement, shall be entitled to reasonable attorney fees and litigation expenses for the relief
granted.
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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. PROHIBITED INTEREST. No member, officer, or employee of the City of
Temecula or of a local public body shall have any interest, direct or indirect, in the contract of the
proceeds thereof during his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their
knowledge that no board member, officer or employee of the City of Temecula has any interest,
whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of
the contracting party other than the City of Temecula, and that if any such interest comes to the
knowledge of either party at any time, a full and complete disclosure of all such information will be
made, in writing, to the other party or parties, even if such interest would not be considered a conflict
of interest under Article 4 (commencing with Section 1090) or Article 4.6 9commencing with Section
1220) of Division 4 of Title I of the Govemment Code of the State of Califomia.
20. 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONSULTANT
Mason & Mason Real Estate Appraisers & Consultants
2609 Honolulu Ave., Suite 100
Montrose, CA 91020-1706
(818) 957-1881
Frances Wolfe Mason, President
Frances Wolfe Mason, SecretarylTreasurer
(Signatures of two corporate officers required for Corporations)
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EXHIBIT A
TASKS TO BE PERFORMED
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MASON & MASON
Real Estate Appraisers & Consultants
2609 Honolulu Avenue, Suite 100
Montrose, California 91020-1706
Telephone (818) 957-1881
Fax (818) 957-1891
e-mail: fmason@mason2.com
Frances Wolfe Mason, MAl
David S. Mason. MAl CRE
Usa M. Benson. MAl
Vincent G. Maher, MAl CRE
Kate C. McWattelll, MAl
Bradford D. Thompson, MAl
Victoria Valentine, RM MRED
RoberlW. Watelll, MAl SRNVA
May 6, 2003
Mr. Amer Attar, Senior Engineer
Ms. Laura E. Bragg, Project Engineer - Capital Projects
City of Temecula
43200 Business Park Drive
Ternecula, California 92590
Re: Statement of Qualifications (RFQ)
Annual Agreement for Appraisal Services
City of Temecula
Dear Ms. Bragg:
Pursuant to your request, we are submitting the following statement of qualifications for real
property services.
Introduction
The firm of Mason & Mason, Real Estate Appraisers & Consultants, established in 1926, conducts
an appraisal and consulting business in the general Southern California area. Offices have been
maintained in Glendale since April I, 1957. While the primary geographic area served is Southern
California, assignments have been undertaken and completed throughout California and in Arizona
and Nevada. The principal office location is as follows:
. Mason & Mason
2609 Honolulu Avenue, Suite 100
Montrose, California 91020
Phone (818) 957-1881
Fax (818) 957-1891
We have appraised large scale multiple parcel projects, as well as individual properties, and many
of these have involved redeveloprnent and urban renewal assignments. Our redevelopment work has
included nearly 2,000 parcels for the cities of Arcadia, Ventura, Los Angeles, Anaheim, Santa
Monica, Torrance, Port Hueneme, Pasadena, Glendale, and National City. Other recent multiple
parcel appraisals have included several hundred acres for the Metropolitan Water District of
Southern California for the proposed Eastside Reservoir, south of Hemet in Riverside County,
several hundreds of properties involved in numerous inverse condemnation - noise damage suits for
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Ms. Laura E. Bragg, Project Engineer - Capital Projects
City ofTemecula
May 6, 2003
properties within the Ontario Airport area of influence for the Department of Airports, and multiple
properties in inverse condemnation damage suits in Big Bear (airport noise), San Bernardino County.
In general, our clientele includes many cities, the State of California, and the Federal Government.
State agencies include the divisions of Beaches & Parks, Department of Transportation, General
Services, Natural Resources, Finance, and Forestry. The cities include Los Angeles, Long Beach,
Glendale, Pasadena, Santa Monica, Santa Clarita, Rancho Cucamonga, Fontana, Palm Desert,
Irwindale, Camarillo, San Dimas, EI Monte, and others. Assignments have also been completed for
rnore than 15 school districts in Los Angeles, Riverside, Ventura and Orange Counties.
Among our private clients have been numerous attorneys, individuals and private corporations, such
as the Coastal Corporation, Lockheed Martin Corp., Catellus Corp., Seventh Day Adventist Church,
Newhall Land & Farming, Crown Zellerbach Co., Honolulu Oil Corp., Nohl Land & Cattle Co.,
Pepsi-Cola Bottling Co., Pacific Bay Homes, Standard Oil, Union Oil, Texaco, Minute Maid Corp.,
Hughes Tool Co., Southern Pacific Transportation Co., as well as many banks, savings & loan
institutions, public utilities, insurance and title companies.
The appraisers in this firm are all rnernbers of the Appraisal Institute, as follows:
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. Frances Wolfe Mason, MAl
. David S. Mason, MAl
. Lisa M. Benson, MAl
. Vincent G. Maher, MAl
. Kate Collins McWatters, MAl SRA
. Bradford D. Thompson, MAl
. Victoria L. Valentine, RM MRED
. Robert W. Waters, MAl SR/WA
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Purpose
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The firm of Mason & Mason understands that the purpose of the State of Qualifications is to retain
appropriate consultant's to perform appraisal services for various projects throughout the year. The
requested Statement of Qualifications is for an annual agreement to cover these services on an as
needed basis. The following scope of services include the type of activities that may be required.
Once the annual agreement is executed, each service will be negotiated separately and may contain
some or all of these services, as follows:
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Research and/or review title reports;
Prepare necessary surveys and identify existing right-of-ways;
Prepare description of properties including, but not limited to, present use, zoning, shape,
contour, elevations, and utilities, etc.;
Prepare necessary legal descriptions, exhibits and any other miscellaneous services for
acquisition purposes;
Provide assistance to the City, as necessary, to acquire right-of-way, preparation of
easernent documents, permission to enter/grade letters, etc.;
And Appraise properties for the purpose of estimating market value and provide
appraisal reports.
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MASON & MASON Real Estate Appraisers & Consultants
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Ms. Laura E. Bragg, Project Engineer - Capital Projects
City of Temecula
May 6, 2003
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Frances H. Wolfe Mason, MAl is the Managing Partner, and coordinates the project assignments,
including primary review capacity. The principal appraisers at Mason & Mason are all rnembers of
the Appraisal Institute, and perform individually on assignments, and form team groups for major
projects. Pursuant to the Annual Agreernent for Professional Appraisal Services, Mason & Mason
will perform assignments, as needed, or on an hourly or not to exceed proposal basis. The as needed
appraisal assignments will be assigned by Frances H. Wolfe Mason, MAl to Principal Appraisers
based on existing workload, expertise, and ability to perform the required assignment in a timely
rnanner. We have enclosed the following items to better identify the firm's and individual
qualifications for the real estate appraisers/consultants at Mason & Mason:
.
Mason & Mason Organizational Chart
Summary of Key Personnel
Subcontractors List
Individual Appraiser Qualifications
Mason & Mason Major Projects List
Mason & Mason Client List
Mason & Mason 2003 Standard Fee Schedule
Insurance Certificate
City of Temecula Annual Agreement for Professional Appraisal Services
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Conclusion
This Statement of Qualifications is valid for a minimum of90 days. The individual personnel at
Mason & Mason agree to maintain required professional licenses, including required continuing
education during the life of the contract with the City of Temecula. The firm of Mason & Mason
has provided evidence of insurance liability (see attached), and will abide by the City's Risk
Management procedures.
We look forward to working with you. Please call if you have any questions.
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Very truly yours,
MA~. 0 & MASON
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Frances Wolfe Mason, MAl
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Enclosures
FWM:cjf
MASON & MASON Real Estate Aooraisers & Consultants
~
EXHIBIT B
PAYMENT RATES AND SCHEDULE
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MASON & MASON
Real Estate Appraisers & Consultants
2609 Honolulu Avenue, Suite 100
Montrose, California 91020-1706
Telephone (818) 957-1881
Fax (818) 957-1891
e.mall: fmason@mason2.com
Frances Wolfe Mason, MAl
David S. Mason, MAl
Lisa M. Benaon, MAl
Vincent G. Maher, MAl
Kale C. McWatters, MAl SM
Bradford D. Thompson, MAl
Victoria L. Valentine, RM, MRED
Robert W. Walers, MAl SFWlA
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2003 STANDARD FEE SCHEDULE
Compensation for work performed on a time-and-materials basis will be computed as follows
through December 31,2003:
APPRAISAL SERVICES
. Principal Appraiser
. Associate Appraiser
. Research
$200.00 to $300.00/hour
$150.00 to $200.00/hour
$ 65.00 to $100.00/hour
EXPERT WITNESS SERVICES
Consultation, Deposition, and Court Appearance
. Frances Wolfe Mason, MAl
. David S. Mason, MAl
. Vincent G. Maher, MAl
. Lisa M. Benson, MAl
. Bradford D. Thompson, MAl
. Kate C. McWatters, MAl SRA
. Harry A. McWatters, MAl
. Robert W. Waters, MAl, SR/WA
. Victoria L. Valentine, RM, MRED
$300.00/hour
$300.00/hour
$225.00 hour
$175.00/hour
$225.00/hour
$225.00/hour
$175.00/hour
$175.00/hour
$150.00/hour
Research
Court Exhibit Preparation
Minimum Charge for Deposition and Court Appearances
$65.00 to $100.00/hour
$30.00 to $65.00/hour
4 hours
MISCELLANEOUS EXPENSES
The following are billed at cost plus 10%:
. Subcontractor Services
. Blue Printing Services and Printing
. Court Exhibits
. Long Distance Telephone Calls, Fax, etc.
. Commercial Delivery Services
. Computer Services
. Air Transportation and Travel Expenses
. Automobile Travel @ $0.36 per mile
. Dell Computer w/Sanction Software $300 per day
. Proxima Projector $250 per day
Revised 10102
ITEM 12
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANe
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/City Council
~ William G. Hughes, Director of Public Works/City Engineer
June 24, 2003
DATE:
SUBJECT:
Annual Professional Services Agreements for Geotechnical and Material
Testing Services for Various Capital Improvement Projects for FY 2003-2004
PREPARED BY:
Amer Attar, Principal Engineer - Capital Projects
Laura Bragg, Project Engineer - Capital Projects
RECOMMENDATION:
That the City Council:
1. Approve the agreement with Leighton Consulting, Inc. in the amount of $60,000.00 to
provide as needed geotechnical and materials testing services; and
2. Approve agreement with EnGEN Public Works Services, LLC. In the amount of $60,000.00
to provide as needed geotechnical and material testing services; and
3. Authorize the Mayor to execute the agreements.
BACKGROUND: There are various projects described in the approved Capital
Improvement Program for Fiscal Years 2004 to 2008 that will require geotechnical and material
testing services. The attached agreements are for two separate annual agreements to provide as
needed services; these services will be utilized on projects that are approved in the Capital
Improvement Program or for special projects that come up through out the year.
Two firms have been selected for annual agreements so that the City is assured that at least one
firm will be available when needed. Once the annual agreements are executed, each service
request will be negotiated separately with one of the two firms and may contain some or all of the
following services:
. Subsurface exploration and logs summarizing the conditions encountered
. Seismicity
. Geotechnical Evaluation and recommendations
. Discussion of existing pavement or site conditions
. Recommendations for removal of unsuitable material
. Soil Ferrous corrosivity and Portland Cement attack potential
. Environmental concems/hazards
. Review of available geologic maps and reports for the region
. Discussion of the material encountered in the borings and measured engineering properties
. Preparation of field and final compaction reports
R:\AGENDA REPORTS\2003\062403\ANNUAL CONTRACT GEOTECH.AGR.DOC
. Review of project plans & specifications with emphasis on geotechnical and laboratory
materials testing services and attend progress meetings
. Observation and Field testing services during all phases of site grading
. Field observation and testing during trench backfilling operations
. Field density testing during subgrade and base compaction
. Field sampling and testing of base and asphalt concrete
. All necessary laboratory tests to support field services and to satisfy Caltrans and other
regulatory agency requirements
. Batch plant inspections
. Structure backfill observation and testing
. Concrete sampling and testing
. Consulting services requiring corrective and/or remedial recommendations
The actual number of projects and costs are not known at this time. Payment will be based upon
actual time spent on tasks as directed by the Director of Public Works/City Engineer.
FISCAL IMPACT: The Consultant will submit a cost proposal for each service request. Once a
scope of service and a schedule of fees are negotiated, funds are allocated from the corresponding
project budget. Only approved CIP projects will utilize the services under these agreements, unless
directed otherwise by the City Manager or City Council.
ATTACHMENTS:
1. Agreement with Leighton Consulting, Inc.
2. Agreement with EnGEN Public Works Services, LLC.
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CITY OF TEMECULA
ANNUAL AGREEMENT
FOR
PROFESSIONAL GEOTECHNICAUMATERIAL TESTING SERVICES
FOR
FISCAL YEAR 2003-2004
THIS AGREEMENT, is made and effective as of June 24, 2003, between the City of
Temecula, a municipal corporation ("City") and Leighton Consulting, Inc., ("Consultant"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. TERM. This Agreement shall commence on July 1,2003, and shall remain
and continue in effect until June 30, 2004, unless terminated or extended pursuant to the
provisions of this Agreement.
2. SERVICES. This is an annual contract for geotechnical/material testing
on an as needed basis. Consultant can perform any of the services and tasks described and set
forth in Exhibit A, attached hereto and incorporated herein as though set forth in full.
When there is a need for geotechnical/material testing on an as needed services,
the City will identify the specific scope of work, and request a fee schedule from the consultant.
The City will instruct the consultant to proceed with the work once the exact scope of work and the
associated fees are negotiated.
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. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the
Labor Code of the State of California, the City Council has obtained the general prevailing rate of
per diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of workman needed to execute this Contract from the Director of the
Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be
obtained at cost at the City Clerk's office of Temecula. Consultant shall provide a copy of prevailing
wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as
a minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the labor Code. Pursuant to the provisions of 1775 of the labor Code,
Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion
thereof, each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates
for any work done under this contract, by him or by any subcontractor under him, in violation ofthe
provisions of the Contract.
5. PAYMENT.
a. The City agrees to pay Consultant monthly, in accordance with the payment rates
and terms and the schedule of payment as negotiated and as set forth in Exhibit 8, Payment Rates
and Schedule, as modified on the consultant letter of June 27, 2001 attached hereto and
incorporated herein by this reference as though set forth in full, based upon actual time spent on
the tasks as directed by the City on an as needed basis. Consultant shall not bill the City for
any travel time and expenses associated with it, nor shall he charge a set minimum number
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of hours for each site visit. Any terms in Exhibit B other than the payment rates are null and void.
The total cumulative annual amount shall not exceed Sixty Thousand Dollars and No Cents
($60,000.00) for the total term of the Agreement unless additional payment is approved as provided
in this Agreement.
b. Consultant shall not be compensated for any services rendered in
connection with its performance of this Agreement unless such additional services are authorized in
advance and in writing by the City. Consultant shall be compensated for services in the amounts
and in the manner as agreed to by the Director of Public Works/City Engineer and Consultant at the
time City's written authorization is given to Consultant for the performance of said services. Any
additional work in excess of the amount above shall be approved by the City Council.
c. Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted between the first and fifteenth business day of each month, for services
provided in the previous month. Payment shall be made within thirty (30) days of receipt of each
invoice as to all nondisputed fees. If the City disputes any of consultant's fees it shall give written
notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the
invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or
terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10)
days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all
work under this Agreement, unless the notice provides otherwise. If the City suspends or
terminates a portion of this Agreement such suspension or termination shall not make void or
invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City
shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4.
7. DEFAULT OF CONSULTANT.
a. The Consultant's failure to comply with the provisions of this Agreement shall
constitute a default. In the event that Consultant is in default for cause under the terms of this
Agreement, City shall have no obligation or duty to continue compensating Consultant for any work
performed after the date of default and can terminate this Agreement immediately by written notice
to the Consultant. If such failure by the Consultant to make progress in the performance of work
hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of
the Consultant, it shall not be considered a default.
b. If the City Manager or his delegate determines that the Consultant is in
default in the performance of any of the terms or conditions of this Agreement, it shall serve the
Consultant with written notice of the default. The Consultant shall have (10) days after service
upon it of said notice in which to cure the default by rendering a satisfactory performance. In the
event that the Consultant fails to cure its default within such period of time, the City shall have the
right, notwithstanding any other provision of this Agreement, to terminate this Agreement without
further notice and without prejudice to any other remedy to which it may be entitled at law, in equity
or under this Agreement.
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8. 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 identi-
fied and readily accessible. Consultant shall provide free access to the representatives of City or
its designees at reasonable times to such books and records, shall give City the right to examine
and audit said books and records, shall permit City to make transcripts therefrom as necessary,
and shall allow inspection of all work, data, documents, proceedings and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a period of
three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this
Agreement, all original documents, designs, drawings, maps, models, computer files 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.
c. With respect to the design of public improvements, the Consultant shall not
be liable for any injuries or property damage resulting from the reuse of the design at a location
other than that specified in Exhibit A without the written consent of the Consultant.
9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect
and hold harmless the City, its officers, officials, employees and volunteers from and against any
and all claims, demands, losses, defense costs or expenses, including attorney fees and expert
witness fees, or liability of any kind or nature which the City, its officers, agents and employees may
sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to
property arising out of Consultant's negligent or wrongful acts or omissions 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.
10. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for
the duration of the contract insurance against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work hereunder by the
Consultant, its agents, representatives, or employees.
a. Minimum ScoDe 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 0001
06 92 covering Automobile Liability, code 1 (any auto). If the
Consultant owns no automobiles, a non-<lwned auto endorsement to
the General Liability policy described above is acceptable.
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(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: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial General
Liability Insurance or other form with a general aggregate limit is
used, either the general aggregate limit shall apply separately to this
project/location or the general aggregate limit shall be twice the
required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Worker's Compensation as required by the State of California;
Employer's Liability: One million dollars ($1,000,000) per accident
for bodily injury or disease.
(4) Professional Liability coverage: One million ($1 ,000,000) per claim
and in aggregate.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City Manager. At the option of the City
Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; orthe Consultant shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and defense
expenses.
d. Other Insurance Provisions. The general liability and automobile liability
policies are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the Consultant; products and
completed operations of the Consultant; premises owned, occupied
or used by the Consultant; or automobiles owned, leased, hired or
borrowed by the Consultant. The coverage shall contain no special
limitations on the scope of protection afforded to the City, its officers,
officials, employees or volunteers.
(2) For any claims related to this project, the Consultant's insurance
coverage shall be primary insurance as respects the City, its
officers, officials, employees and volunteers. Any insurance or self-
insured maintained by the City, its officers, officials, employees or
volunteers shall be excess of the Consultant's insurance and shall
not contribute with it.
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(3) Any failure to comply with reporting or other provisions of the
policies including breaches of warranties shall not affect coverage
provided to the City, its officers, officials, employees or volunteers.
(4) The Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect
to the limits of the insurer's liability.
(5) Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail, return receipt requested,
has been given to the City.
e. Acceotabilitv of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self
insurance shall not be considered to comply with these insurance requirements.
f. Verification of Coveraqe. Consultant shall fumish 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 altemative to the City's forms, the Consultant's insurer may provide
complete, certified copies of all required insurance policies, including endorsements effecting the
coverage required by these specifications.
11. 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.
12. 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.
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13. RELEASE OF INFORMATION.
a. All information gained by Consultant in performance of this Agreement shall
be considered confidential and shall not be released by Consultant without City's prior written
authorization. Consultant, its officers, employees, agents or subcontractors, shall not without
written authorization from the City Manager or unless requested by the City Attorney, voluntarily
provide declarations, letters of support, testimony at depositions, response to interrogatories or
other information concerning the work performed under this Agreement or relating to any project or
property located within the City. Response to a subpoena or court order shall not be considered
"voluntary" provided Consultant gives City notice of such court order or subpoena.
b. Consultant shall promptly notify City should Consultant, its officers,
employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of
deposition, request for documents, interrogatories, request for admissions or other discovery
request, court order or subpoena from any party regarding this Agreement and the work performed
thereunder or with respect to any project or property located within the City. City retains the right,
but has no obligation, to represent Consultant and/or be present at any deposition, hearing or
similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the
opportunity to review any response to discovery requests provided by Consultant. However, City's
right to review any such response does not imply or mean the right by City to control, direct, or
rewrite said response.
14. 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.
To City:
City of Temecula
Mailing Address:
P.O. Box 9033
Temecula, California 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
Leighton Consulting, Inc.
41715 Enterprise Circle North, Suite 103
Temecula, California 92590
Attention: Robert F. Riha, Principal Geologist
15. ASSIGNMENT. The Consultant shall not assign the performance of this
Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of
the City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for
actual services performed up to, and including, the date of termination or as may be otherwise
agreed to in writing between the City Council and the Consultant.
To Consultant:
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16. 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.
17. 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 conceming
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
judgement, shall be entitled to reasonable attomey fees and litigation expenses for the relief
granted.
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. PROHIBITED INTEREST. No member, officer, or employee of the City of
Temecula or of a local public body shall have any interest, direct or indirect, in the contract of the
proceeds thereof during his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their
knowledge that no board member, officer or employee of the City of Temecula has any interest,
whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of
the contracting party other than the City of Temecula, and that if any such interest comes to the
knowledge of either party at any Ume, a full and complete disclosure of all such information will be
made, in writing, to the other party or parties, even if such interest would not be considered a
conflict of interest under Article 4 (commencing with Section 1090) or Article 4.6 9commencing with
Section 1220) of Division 4 of Title I of the Govemment Code of the State of California.
20. 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
the day and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONSULTANT
Leighton Consulting, Inc.
41715 Enterprise Circle North, Suite 103
Temecula, CA 92590
(909) 296-0530
Ross Khiabani, President
PrinVType Name & Title
(Signatures of two corporate officers required for Corporations)
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EXHIBIT A
TASKS TO BE PERFORMED
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A LEIGHTON GROUP COMPANY
RECEIVED
JUN 1 C 2003
Leighton Consulting, Inc.
June 10,2003
CtTY OF TL\ti[('IJI ^
ENG"J-'.... ~, eM
"-..:~~2iiNG DEP;\RTM~NT
-.------:..-=--.
To:
City of Temecula
Public Works Department
43200 Business Park Drive
Temecula, California 92590
Attention: Ms. Laura Bragg
Subjec.t: Clarification of Qualifications Submittal to Provide On-Call Geotechnical and
Materials Testing Services for Various CIP Projects Approved for FY2003-2004
Reference: Leighton Consulting, Inc., 2003, Qualifications for Geotechnical and Materials
Testing Services, Various CIP Projects Approved for FY2003-2004, dated May 9,
2003.
In response to your request, Leighton Consulting, Inc., is pleased to submit this clarification of
our qualifications submittal to provide on-call Geotechnical and Materials Testing Services for
various CIP Projects Approved for FY 2003-2004. We hereby verify that travel time and/or
travel expenses including trips to-and-from the job site and mileage (charges per mile) will not
be charged to the City of Temecula by Leighton Consulting, Inc. or Teratest Labs, Inc. (our sister
cornpany) as indicated on Page II of our referenced submittal. In addition, since we are a local
firm, no minimum hourly charges will be charged by Leighton Consulting, Inc. or Teratest Labs,
Inc. to City projects. Only actual time spent at the job site will be billed under this contract. This
supercedes the statements made on Teratest Labs, Inc.'s "Schedule of Services" and "Basis of
Charges" in the referenced submittal. If you have any further questions regarding this letter or
our qualifications submittal, please do not hesitate to contact this office.
We are pleased to be considered as the City of Temecula's geotechnical and materials testing
consultant and we look forward to serving the City ofTemecula.
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/::T. Guatelli, PE, GE
Project Manager
Distribution: (4) Addressee
41715 Enterprise Circle N.. Suite 103. Temecula, CA 92590-5661
909.296.0530. Fax 909.296.0534. www.lei9htonconsulting.com
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I City of Temecula
On-Call Geotechnical Services and Materials Testing Services
May 9, 2003
Project Understanding and Approach
Demonstrated Knowledge of the Work Required
Upon our review of the Request for Statement of Qualifications (RFQ), it is our
understanding that the requested services may include various projects on an as-
needed basis including subsurface investigation, field observation and testing during
grading and construction, and materials testing and inspection. Following is a brief
summary of our understanding, based on our experience, of the requested services.
Design Services
Subsurface Exoloration - Leighton has performed more than 300 subsurface
investigations within the City utilizing various methods including trenching, small and
large diameter borings, seismic refraction, and Cone Penetrometer Tests (CPT's). We
understand the nature of drilling in sensitive habitat and the public right-of-way and
have worked closely with several regulatory agencies with jurisdiction within the City
of Temecula including County of Riverside Flood Control and Water Conservation
District, Army Corps of Engineers, and Department of Fish and Game. We have
worked directly with the City of Temecula along with Caltrans for drilling in street right-
of-way and understand the complexities of subsurface investigation in an urban
environment.
Faultina and Seismicity - As the City of Temecula is located in a seismically active
region, we understand the City's concerns with earthquake hazards including faulting,
ground shaking, lateral spreading and settlement on critical City CIP projects.
Leighton's Temecula based geologists have conducted numerous fault studies in
within the City of T emecula and maintains a current database of sites where known
active faulting has been discovered and also sites where faulting has been precluded
based the results of our investigations. Should additional interpretation be required,
Leighton has access to some of the most recognized geologists and seismologists in
their respective fields of study.
Gradina and Earthwork - We understand the grading requirements and specifications
of the City of Temecula, Caltrans, Uniform Building Code and Greenbook from our
work on projects like the 1-15 on/off ramps where we observed the compaction of
roadway embankment fill. Earthwork activities at more than 200 sites have included
remedial grading of potentially compressible alluvial soils or undocumented fills. We
have also observed, tested, and documented site preparation, fill placement and
compaction techniques, subdrain installation, cut and fill slopes, trench excavation
and backfill, excavation of slopes including rock slopes.
Slooe Stabilitv - From our collective experience on more than 500 roadway widening
or slope restoration projects, we understand the complexities in evaluating soil and
rock slopes. The Leighton team has historically been a leader in innovative
approaches in slope stabilization including the design of geo-reinforced slopes, shear
pins, hydroaugers, rockblots and tie-back retaining structures. Our engineers have
Leighton Consulting, Inc.
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On-Call Geotechnical Services and Materials Testing Services
May 9, 2003
access to numerous computer programs for slope stability (both soil and rock slopes)
including GSTABL7, SLOPEW, Colorado ROCKFALL, and ROCKPAC.
Foundation Desian and Settlement - From large scale to small scale, the Leighton
team has experience with nearly every foundation type found locally including drilled
piers, driven piles, spread footings, mat-type footings, and post-tensioned
foundations. Our engineers have access to numerous computer programs for deep
foundation design including LPILE, APILE, and SHAFT for vertical load capacity and
lateral load analysis. Geotechnical foundation recommendations typically include
allowable bearing values along with estimations for settlement based on the needs of
the project structural designer. Our team of engineers and geologists remain
committed to providing the City with practical recommendations for foundation design
based on our understanding of the local geologic conditions.
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Lateral Earth Pressures and Retainina Wall Desion - We understand the limitations of
City right-of-way clearance and the importance of retaining walls in future
construction. We also understand the importance of trench excavation and safety,
and shoring installation and design. Leighton engineers have provided lateral earth
pressures for numerous projects and have experience with nearly every retaining
structure used by the City including cantilever walls, gravity walls, sound walls, crib
walls, and geogrid-reinforced retaining walls.
Pavement Evaluation and Desian - Leighton has performed numerous pavement
designs within the city based on Caltrans and City of Temecula design criteria. For
the City's ongoing program to evaluate the performance of City Streets we will assess
the performance of pavement materials, subgrade performance and drainage
conditions. We are currently working on several road widening projects within the City
including the Winchester and Margarita Road Widening. During the Margarita Road
widening project, Leighton assisted Lennar and the City of Temecula in stabilizing
yielding subgrade.
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Soil Corrosion Potential - We are aware, as is the City, how the soils inherent in the
area are potentially damaging to underground utilities. For nearly every project we
have completed in the area, we have tested for sulfate and chloride content, pH and
resistivity. Our review of the test data collected and discussions with corrosion
engineers indicates we have encountered these corrosive soil conditions, and our
design recommendations have been modified to accommodate them.
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Plan and Soecification Review- We understand the importance of plan and
specification review when developing contract documents. Leighton will take every
opportunity to review the plans and specifications critically to minimize the City's
exposure to expensive change orders or construction delays and to ensure that the
plans and specifications are prepared in accordance with the geotechnical
recommendations and materials testing requirements.
Leighton Consulting, Inc.
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I City of Temecula
On-Call Geotechnical Services and Materials Testing Services
May 9, 2003
Field Observation and Testing Services
Utility Trench Backfill - To meet the local requirements for fill soil compaction in utility
trenches, our local office will quickly turn around tests including results for compaction
requirements and gradation of backfill materials and shading sand.
Construction Monitorina - During construction for CIP projects such as road widening
and improvements and utility installation, we will rely on our expertise from projects
like the Winchester Road Bridge widening and the Harveston development. Our
experience on projects for water districts, developers, the school district and you
covers nearly every area of the city.
Materials Testina and Deouty Insoection - We understand the importance of
availability of Deputy Inspectors and Technicians with the necessary certifications (i.e.
ICBO and ACI) for on-call contracts. Leighton has a pool of 50 deputy inspectors that
work for us almost every day, who can be dispatched to your project site or for batch
plant inspection. Our Temecula lab also has the capability of performing several of the
tests required during construction of pavements and utility trench backfill including
gradation, concrete compression, and compaction tests.
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Laboratorv Testino - Laboratory facilities for Leighton are located in Temecula, San
Diego and Irvine. All laboratory facilities are linked to a common computer server and
lab test results can be exported via the Internet to web sites or email accounts. Data
is reduced utilizing computer programs for consistent quality. The laboratory facilities
of Leighton are some of the best available in Southern California for routine or
complex soil or building material testing. This would be a significant resource made
available to the City of Temecula. Lab staff are accessible and can work a multiple
shift and weekend schedules to meet the City's schedules.
Environmental Concems/Hazards - We understand the potential impact on project
schedules and regulatory requirements when hazardous materials are suspected or
encountered. The Leighton Team has experience with the local environmental
conditions and has an in-house staff of environmental specialists to assess any
potentially hazardous materials that may be encountered. If potentially hazardous
materials are encountered where not previously suspected during subsurface
investigation or grading, City staff will be contacted immediately; and along with our
in-house staff, can asses the potential risk.
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Approach
We have developed our approach to the project to be consistent with the Request for
Qualifications and your letter dated April 16, 2003. The primary goal will be to provide
geotechnical and material testing services on various Capital Improvement Projects
(CIP's).
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Based upon our previous experience with various soil conditions throughout Southern
California and specific experience with contracts of a similar nature, Leighton is
confident in our ability to provide the following general scope of services. Due to the
nature of on-call contracts, it is understood that the scope of services to be provided
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On-Call Geotechnical Services and Materials Testing Services
May g, 2003
by the consultant may vary from what is illustrated in the RFQ package. A portion or
all of the services described therein may be necessary and additional services not
listed may also be required. As a result of Leighton's extensive experience with on-
call type contracts, our proposed project team is aware of the conditions of such a
contract and are fully prepared to provide all services requested by the City of
Temecula.
We have approached our proposal with an experienced team of professionals to
provide the requested services to the City. Mr. Guatelli will coordinate personnel for
Field and Office Operations, and Laboratory Testing and will serve as a single point of
contact for the Public Works Department and City personnel.
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We have also developed our approach keeping in mind that the primary goal is
assisting the City in delivering high quality, economical products on CIP projects to
the public. Project initiation is anticipated to begin with City Task Order assignments.
City Task Orders assignments may be as simple as a phone call to Mr. Guatelli with a
brief description of the project, location, and requested services or may be a more
formal written description of the project with preliminary project plans or schematic
drawings depending on the workload and needs of City personnel. Project
clarification, schedule and scope may be communicated at that time. A written
proposal will then be prepared by Leighton outlining our scope, assumptions,
schedule, deliverable, and fee based on our project understanding. Upon review and
approval by the City, a pre-job meeting may be held with City staff to discuss project
details and coordination. It is anticipated that the primary Task Order assignments will
be in the areas of Design and Construction. However, some technical review (third
party review) and forensic evaluations are also anticipated. A brief description of our
approach in each area is summarized below.
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Design and Technical Review Task Orders
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Design and Technical Review Task Orders will be handled primarily by Leighton
professionals with field coordination, laboratory testing and office operations to be
coordinated by Project Engineers and/or Geologists. Again, Mr. Guatelli will serve as
a single point of contact for the Public Works Department and any City personnel.
Coordination and scheduling between the Public Works Department personnel, field
personnel and Mr. Guatelli will be evaluated as deemed necessary to allow for proper
planning of activities.
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Depending on the complexity of the design or evaluation, Iraj Poormand, RCE, GE
will provide in-house consultation and internal quality assurance/quality control.
if hazardous materials are suspected during subsurface exploration, Thomas Mills,
RG, REA Ii is available for preliminary assessment (Phase 1) and/or sampling and
testing (Phase 2). If potentially hazardous materials are encountered where not
previously suspected during subsurface investigation, City staff will be contacted
immediately. Impact to the PMB will be discussed within the City of Temecula project
manager and environmental field coordination, sampling, and testing will be handled
by Mike Kusler.
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I City ofTemecula
On-Call Geotechnical Services and Materials Testing Services
May 9, 2003
Test procedures for soil and materials will be determined based upon the project
specifications. Leighton assures the City that all tests will be performed as specified
by project documents including in accordance with the California Test Methods
specified in Caltrans "Manual of Testing" as well as the most recent version of ASTM
or Greenbook standards.
Cameron Roberson, RCE will be ultimately be responsible for the review and direction
of all laboratory testing. Report preparation will be coordinated by Adam Terronez,
RCE and Bob Riha, RG, CEG.
Construction Task Orders
Coordination with City personnel, regulatory agencies, and the construction contractor
will managed by our Project Manager. Depending on the complexities of the project it
the Project Manager may determine that it is mutually beneficial to all parties to hold a
pre-construction meeting upon delivery of the Construction Task Orders. Field
coordination will be coordinated by Richard Nogales who will determine and assign
the most qualified field personnel to perform observation and testing services during
the various phases of construction and field activities. Field personnel will report their
activities directly to Mr. Andrew Guatelli, who will update the Project Engineer and/or
Geologists.
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As during field investigation, soil and material (i.e. concrete, and rebar) samples will
be tested under strict quality control to meet the specifications of the contract
documents.
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If potentially hazardous materials are encountered where not previously suspected
during construction, City staff will be contacted immediately; and along with our in-
house staff, can be assessed immediately.
Reports of as-graded or compaction and materials testing indicating general
compliance with the project plans, specification and geotechnical recommendations
will be provided as required. End of project deliverables will be mutually understood
as outlined in our estimated cost proposal prior to construction. As-graded and
compaction reports will prepared and coordinated by Mr. Terronez and Mr. Riha while
materials testing and deputy inspection reports will be reviewed by Mr. Fakharpour.
These efforts, combined collectively with a comparison of specified and actual events,
will be reported to the City. Any variance detected between anticipated and actual
field conditions will be clearly identified for inclusion in the contractor-prepared "as-
built" plan.
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Scope of Services-Construction
Our construction services for the provision of soils and materials testing and
inspection services will include field observation and inspections for environmental,
geotechnical and materials construction, field testing for compaction, and laboratory
testing of representative samples for the verification of the quality of work in progress
and/or completed during construction phases of the project. The proposed services
Leighton Consulting, Inc.
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On-Call Geotechnical Services and Materials Testing Services
May 9, 2003
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will also include services relevant to soils and materials in compliance with California
Test Methods specified in Caltrans "Manual of Testing" and shall meet the latest
requirements of ASTM, or as otherwise specified in the contract documents. The
services provided by Leighton will be those services customarily rendered by firms
providing soils and materials testing services on projects governed by Califomia Title
24 Building Code, requirements for the City of Temecula Department of Public Works.
Leighton proposes the following construction services:
Field Observation
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Salls
Excavation Stability - Construction
Fill Material Placement
Trench Backfill Placement
Subgrade Preparation
Aggregate Base Placement
Field Testing
Salls
Fill Material Compaction
Trench Backfill Compaction
Subgrade Compaction
Aggregate Base Compaction
Asphalt Concrete Density
Reinforced Bars Sampling (if required)
Concrete Slump
Drainage
Laboratory Testing/Analysis Design
Salls
Gradation
Maximum Density and Optimum Moisture
Expansion Potential
Direct Shear
Corrosivity
Consolidation Potential
Foundation Design
Lateral Earth Pressure
Slope Stability
Materials
Asphalt Concrete Placement
Concrete Construction
Masonry Construction
Reinforced Bars Placement
Structural Steel Welds
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Materials
Concrete Cylinder Molding
Mortar Cylinder Molding
Grout Slump
Grout Cylinder Molding
Masonry Prism Construction
Structural Steel Welds (if required)
Concrete Slump
Batch Plant Inspection
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Materials
Concrete Cylinder Compression
Mortar Cylinder Compression
Grout Cylinder Compression
Masonry Prism Compression
Reinforced Bars Tension Test
Reinforced Bars Bend Test
Pavement Design
Mix Review Design
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Technical Capabilities
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One of Leighton's unique strengths has been the pioneering use of technology to
improve data quality, reduce costs, and improve productivity. All staff in Leighton's
Temecula office have access to a full suite of engineering computer programs
including, AutoCAD, Canvas, ArcView; GSTABL 7, Colorado ROCKPAC, and
ROCKFALL for slope stability analysis: EQFAUL T, FRISKSP, UBCSEIS, and
EQSEARCH for seismic analysis; and NEWCON 90, PCA PAV, in-house and other
proprietary pavement design. Combined with production tools such as our digital large
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I City ofTemecula
On-Call Geotechnical Services and Materials Testing Services
May 9,2003
format plotter we are able to provide drawings and maps quickly. We prepare
exploratory drilling logs using glNT software, that can be delivered in Adobe pdf for
fast and accurate insert into project drawings.
Field personnel use hand held devices for data transfer of daily field reports,
memorandums and field density test results as soon as they are produced. When
uploaded to the Leighton intranet, our project manager and office personnel have
immediate access to the data. Field technicians have immediate access to project
documents such as
reports and
recommendation
letters. All reports can
be sent via email in
Adobe pdf format,
again, speeding the
process of data flow.
Our reporting process is
also streamlined by
uploading field density
tests and GPS
coordinate locations
into the electronic
project file remotely.
Using GPS coordinates
and remote filing, test
locations may be plotted quickly on electronic base maps provided by your Civil
Engineer or surveying team. Locations can be reported using a variety of coordinate
systems. We have used this equipment to accurately locate boring locations, fault
trench locations and access roads, as well as fault traces and landslides limits.
For example, the system was successfully used in a State Park to locate proposed
access roads and boring sites. These proposed locations were revised in the field in
consultation with representatives of the California Department of Parks and
Recreation and the state and federal resource agencies to avoid archeologically and
environmentally sensitive habitat areas. The accuracy and precision of the GPS
system gave the resource agencies and landowner (U.S. Marine Corps) confidence
that the revised drill sites and access roads could be easily and reliably identified
during the subsequent fieldwork.
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I City of Temecula
On-Call Geotechnical Services and Materials Testing Services
May g, 2003
Feasibility of Oversight
We will provide quality field services on an on-call basis and commit to a maximum 2-
hour turn-around time period for responding to the City's calls. The Leighton team
stands ready to respond 24 hours a day. The way we will accomplish this is to set up
a specific on-call cell phone number you can call at any time. We will designate a
rotating member of the project team to carry this phone at all times, so that we remain
in contact. This designated emergency contact will have access to the project
manager and team members to respond if needed.
Each project will be managed from our Temecula office (located less than 2 miles
from the City of Temecula offices) and our services will be delivered by our own
workforce. We are readily accessible to City staff and have worked with several key
City staff members on previous City projects.
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Page 20 I
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EXHIBIT B
PAYMENT RATES AND SCHEDULE
10
r:lagrmtslmasterslannual contract2003-Q4\Leighton annual FY03-Q4/ajp
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2003 PROFESSIONAL FEE SCHEDULE"
FOR PREVAILING WAGE PROJECTS
GEOTECHNICAL SERVICES
TECHNICAL STAFF
Soil Field Technician....................... ......... .................. ..... ............. .......................................................................... ........... $ 92 60
Operations Manager....................... ...... .... ................................. ...................................................................,........ ................ 100
Engineer/Geologist........ ..................... ..... ..................... .............. ............................................................ ............... ................ 100
Project Engineer/Geologist/Scientist ..... ................... ................... ................. ......... ................................. ............................... 120
Senior Project Engineer/Geologist/Scientist............. .................. ........................................................ ..................... .............. -t3& 125
Associate....... ...... ...................................................... ............... ..... ........................ ................................. ................. .............. 400- 125
Principal.............. ................................................................................................................................................................... ~ 125
Senior Principal.... .................................................... ..... ............ .................... ......... ................................. ............................... 4i& 125
TECHNICAL SUPPORT STAFF
Office Assistant .... ............................................. ..... .................. ...... ............... ........ ................. ............ .................................. $ &&- 40
Word Processor ................................................ ..... .................. .............. ............................... ................................................... 6& 40
CAD OperatorlTechnicallllustrator/GIS Operator.. .................. ..................... ......... ................ .................................................. 69
ENGINEERING EQUIPMENT
Vehicle Usage ...............................................................................................................,..................................... $ 1- $0 per hour
Tllbneter, Inclinometer Units....... ........................... ................... ..... ............ .......................... ........... ...................... Upon Request
Nuclear Soil Gauge.............................................................................................................................................199 ~er say $0
GPS Station... ...... ......... ..................................... ...................... .................. .......... ................. .......... ...................... Upon Request
Other Equipment. ...... ..................... ................... ....................... ............... ...... ........ ................. ......... ..... ................. Upon Request
OTHER TERMS AND CONDITIONS
. No Vehicle Usage or TravelTime Fee.
. Expert witness testimony will be charged at 2.0 times the above rates, with a minimum charge of four hours per day.
. Overtime for Soil Field Technicians will be charged at 1.5 the basic rate.
. Invoices are rendered monthly, payable upon receipt.
. Proposals are valid for 30 days, unless otherwise stated.
. Heavy equipment, subcontractor fees and expenses, supplemental insurance, travel, shipping, reproduction, and other
reimbursable expenses will be Invoiced at cost plus 15%, unless billed directly to, and paid by client.
. Thirty percent of the fee for field studies will be invoiced Immediately upon authorization to cover equipment and
mobilization costs.
. Client agrees to provide all Information in Client's possession about the actual or possible presence of buried utilities and
hazardous materials on the site, and agrees to reimburse Leighton for all costs related to their unanticipated discovery.
. Rates predicated on standard insurance coverage.
. Technician rate is subject to revision as required by prevailing wage law.
. For "paid when paid" contracted work, Leighton Consulting, Inc. shall receive payment within 10 calendar days from when
our client receives payment for our services.
" Effective January 1, 2003 through June 30, 2003, after which remaining work will be billed at then-current rates.
9060 499
(Continued on Reverse)
LABORATORY CHARGES.
TEST
Moisture Content..................... .................................................................................................................................... $ 12
Moisture and Density (Ring Samples) ......................................................................................................................... 20
Moisture and Density (Shelby Tube)............................................................................................................................ 48
Maximum Dry Density (Optimum Moisture Content).................................................................................................... 150
Maximum Density Checkpoint..................................................................................................................................... 65
Moisture and Density (Chunk Samples) ...................................................................................................................... 55
Specific Gravity - Fine Aggregate .......................... ....... ............................................................................................... 70
Specific Gravity - Coarse Aggregate ................................ ...................................................................... ..................... 65
Sieve Analysis................................................................................................................................................... .......... 60
Hydrometer Analysis... ......................... ........................................................................................................................ 87
Sieve and Hydrometer Analysis............................................................................................... .................................... 126
Percent Passing No. 200 Sieve ............................. ............................................... ....................................................... 44
Liquid Limit and Plastic Index......................................................................... ............................................................. 96
Liquid Limit - Non Plastic (1 pt)....... ....................................................................................... ....................................... 68
Sand Equivalent.............. ................... ..................................................................................... .................... ................. 70
Expansion Index................. ............... ...,...... ........................................ ............................................................... ......... 110
Single Point Shear................ .................................. .......................................... ..................................................... ...... 77
Direct Shear (Undisturbed) Consolidated Undrained - 0.05In/min............................................................................. 185
Direct Shear (Undisturbed) Consolidated Undrained - ASTM 3080............................................................................ 395
Remolding - 3 points...... ............................ .................................. ....................... ............................................ ............ 60
Residual Shear (price per pass, per point after shear) ................................................................................................ 45
Torsional Shear ..................... .................................. .......................................................... .......................................... 500
Consolidation (w/o Time-Rate) ................................................. ........................................... ........................................ 165
Wmme Rate, Add (per increment).... ................................................................................. .................................. 40
W/Extra Load, Add (per load) ............................................................................................................................... 35
Collapse Test....... ..................................................... ................................................................................................... 90
R-Value (Untreated or Treated) ................................................................................................................................... 210
CBR (Untreated) Per Point........ ............................................... ............................... .................................................... 158
Sulfate Content (Gravimetric) ................. ...... ................................ ....................... ....................... ................................. 55
pH .............................................................................................................................................................................. 33
pH and Resistivity..................... .............................. ....... ........... .......................................... ............. ............................ 105
Chloride Content.. ........................ ....... ...................................... ........................................... ........................................ 53
Corrosion Suite: (includes pH, Chloride, Minimum Resistivity, Sulfate)....................................................................... 180
Concrete Compression...... ............................ .... .... ,_,.......... ........',................. n. ............. ............... ......... ............. ......... 18
CAL TRANS 216........................................................................................................................................................... 175
Triaxial testing. residual shear tests, permeability, abrasion, and special tests will be charged at hourly rates. Materials
testing fees and additional laboratory testing fees will be provided on request.
Laboratory samples will be maintained for 90 days. A monthly storage fee of $2.50 per bag/$1.00 per ring will be assessed if
longer storage is required.
Requested weekend testing and RUSH tests may be provided to clients upon request and additional charges will be
determined on a project-by-project basis.
Laboratory Staff Fees (per hour)
Laboratory Tech I
Laboratory Tech II
Senior Technician
Senior Staff Engineer/Scientist
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2003 PROFESSIONAL FEE SCHEDULE"
FOR PREVAILING WAGE PROJECTS
GEOTECHNICAL SERVICES (Cont'd)
$50.00
$60.00
$70.00
$85.00
The above rates include perfonnlng the test and producing raw laboratory results. No data reductIon or Investigation is included.
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Task
0100
0110
0120
0130
0136
0140
0145
0150
0160
0170
0180
1
1
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]
Task
0195
0196
0197
0198
0199
0200
0213
0201
0214
0202
0203
0204
0205
0206
0207
0208
0209
0210
0211
0212
0250
0252
]
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Task
0220
0230
0223
0234
0260
0265
0222
0215
0270
0273
0274
0280
0281
0290
0291
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Teratest Labs, Inc.
~ LEIGHTON GROUP COMPANY
SCHEDULE OF SERVICES - Prevailing Wage
Prepared for City of Temecula - On Call Geotechnical & Material Testing Services
Professional Services
Principal Engineer
Registered Civil Engineer
Staff Engineer
Project Management
Scheduling/Supervision
Secretarial Time
Reports - Test Results
Review of Files for Final Letter of Affidavit (min. 2 hours)
Expert Witness, Consultation and Court Appearances (min. 4 hours)
Submittal Review for Compliance with Project Plans and Specifications
Structural Observation designated by the Architect or Engineer of Record (Seismic Zones 3 & 4)
Price $ / hour
150
100
80
65
+4%
40
10
100
200
100
200
Inspection Services
Relocatable Building In-Plant Inspections, Title 24
DSA Project Inspector (lOR) - Class I
DSA Project Inspector (lOR) - Class II
DSA Project Inspector (lOR) - Class III
DSA Project Inspector (lOR) - Class IV
Special Inspection Concrete ICBO
Special Inspection Post-Tension Concrete ICBO
Special Inspection Structural SteellWelding & Bolting ICBO
Special Inspection Welding AWS/CWI
Special Inspection Masonry ICBO & DSA
Special Inspection Roofing
Special Inspection Asphalt
Special Inspection Fireproofing ICBO
Electrical Inspection
Mechanical Inspection
Special Inspection Shotcrete ICBO & DSA
Special Inspection Epoxy Injection & Anchors
Batch Plant Inspection Concrete
Batch Plant Inspection Asphalt
Building Inspection ICBO
Fabrication Inspection (Local) AWS/CWI
Fabrication Inspection (Outside Local Area)
Price $ / hour
75
85
80
75
70
65
65
65
69
65
65
65
65
65
65
65
65
65
65
65
69
Quote
Technician Services
T echniclan-Materials-FieldlConcrete
Technician-Soil (Compaction Tests Only)
Coring and Sizing (in house)
Laboratory Technician
Pachometer Inspection - Technician
Schmidt Hammer Inspection -Technician
Moisture Testing - Technician
Grounding Rod Soli Resistance Test - Technician
Pull-out Test on Embedded Bolts, Anchors and Dowels
Earth Anchor Hold Down Test (4 Hour, Full Load Application with 5 minimum)
Earth Anchor Hold Down Test (Prelude / Short Term, w/Full Load)
Coring Concrete, Masonry or Asphalt In Field
Sawing Concrete. Masonry or Asphalt in Field
Pick-up and Delivery - Standard
Technician Travel Time (>40ml. radius of Irvine lab)
Price $ / hour
65
quote
65
65
65
65
65
250 ea.
65
150
15
85
95
45
45
T emecula $
+2%
No charge
No charge
90
58
59
59
60
60
59
59
59
59
59
58
58
59
58
Prepared for City of Temecula
" --=- 9, 2003
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Prices in bold reflect special rates. All other Items will be
charged at the standard rate. Prices valid fori year.
17781 Cowan . Irvine, CA 92614
949.253.5922 . Fax 949.263.8843 . www.teratest.com
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Teratest Labs, Inc.
A LEIGHTON GROUP COMPANY
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'] Task Non-Destructive Testing (NOT) Price $ / hour Temecula
0240 Ultrasonic Inspection 65
0242 Dye Penetrant Inspection 65
0244 Magnetic Particle Inspection 65
;] 0245 Radiographic Testing Quote/hour
0246 Travel Charge Quote/hour or mile
0247 Truck Charge Quote/day
0248 Film Quote/film
'I Task Equipment Charges Price $ , day
0300 Skidmore-Wilhelm Bolt Cell 40
0310 Torque Wrench 15
J 0320 Air Meter 20
0330 Pachometer 50
0340 Schmidt Hammer 30
0350 Nuclear Density Gauge 75
] 0360 Vibrating Probe (Concrete) 40
0370 Generator 50
Task Concrete Strength Characteristics Method Price $ ea.
0500 Concrete Cylinders (6"x 12") - Compression ASTM C-39 19 18
0505 Gunlte /Shotcrete Cores (Lab Coring & Testing Only) ASTM C-42 45
0520 Lightweight Fill Concrete (3"x6") ASTM C-495 25 18
0560 Compression, Concrete or Masonry Cores (Testing Only) Max. Diameter 6" ASTM C-42 30
) 0570 Splitting Tensile ASTM C-496 35
J 0580 Flexural Strength of Concrete (Simple Beam with 3'" pI. Loading) ASTM C-78 50
0610 Mix Design, Detemination of Proportions 125
0620 Mix Design, Review of Existing 100
0630 Laboratory Trial Batch with Slump, Unit Weight & Air Content ASTM C-192 350
0640 6"x 12" Cylinder, Make and Test (Lab Trial Batch) ASTM C-192 20
0650 3"x 6" Grout Prisms, Make and Test (Lab Trial Batch) ASTM C-192 15
0660 6"x 6' Flexural Beams, Make and Test (Lab Trial Batch) ASTM C-192 30
0665 Per Sample Pick-up within 40-mlles of Irvine Lab 6
0668 Cylinder Molds, 6"x 12", 2"x 4" (Not Used With Testing) 3
0670 Unit Weight of Hardened Light weight Concrete ASTM C-567 30
0680 Rapid Cure Concrete Cylinders (Boll Method) ASTM C-684 30
0690 Drying Shrinkage (Four Readings, up to 90 days, 3 bars) ASTM C-157 200
0695 Modulus of ElasticitylPoisson's Ratio ASTM C-469 250
0696 Petrographic Analysis of Hardened Concrete ASTM C-656 1250
0697 Cement Content Analysis of Hardened Concrete ASTM C 1084 800
Task Aggregate Properties Method Price $ ea.
4000 Sieve Analysis of Fine and Coarse Aggregate ASTM C-136 90
4030 Sieve Analysis-Finer than #200 (Wash) ASTM C-117 60
7000 LA Rattler-Smaller Coarse Aggregate < 1'1." ASTM C-131 150
7010 LA Rattler-Larger Coarse Aggregate> %" ASTM C-535 175
7020 Soundness ASTM C-88 200
7030 Organic Impurities ASTM C-40 50
7040 Clay Lumps, Friable Particles ASTM C-142 110
434 Durability Index CTM 229 110
521 Cleanness Value of Coarse Aggregate CTM 227 75
j
Prepared for City ofTemacula
9,2003
Prices in bold refiect special rates. All other nems will be
cha ad at the standard rate. Prices valid ton ear.
17781 Cowan . Irvine, CA 92614
949.253.5922 . Fax 949.263.8843 . www.leratest.com
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Teratest Labs, Inc.
1 A LEIGHTON GROUP COMPANY
Task Masonry Method Price $ ea. Tamacula $
1 0530 Mortar Cylinders (2"x4") ASTM C-780 19 18
0540 Mortar Cubes (2"x 2") ASTM C-l09 19 18
0550 Grout Prisms (3"x6") ASTM C-l019 19 18
0560 Compression, Concrete or Masonry Cores, Max. Diameter 6" (Testing Only) ASTM C-42 30 35
I 0700 CMU Compression (3 required) to size 8"x 8"x 16" ASTM C-140 40
0710 CMU Compression (3 required) greater than 8"x 8"x 16" ASTM C-140 45
0720 CMU Moisture Content, Absorption & Unit Weight (6 required) ASTM C-140 75
0740 Masonry Efflorescence (5 required) ASTM C-67 45
'J 0760 CMU Linear Drying Shrinkage ASTM C-426 85
0770 CMU Grouted Prisms (Compression Test to 8"x 8"x 16") ASTM E-447 135
0775 CMU Grouted Prisms (Compression Test larger than 8"x 8" x16") ASTM E-447 160
0795 Masonry Core-Shear Title 24 (Test Only) 55
I Task Brick Method Price $ ea.
0800 Compression (5 required) ASTM C-67 35
0810 Modulus of Rupture (5 required) ASTM C-67 35
I 0820 Absorption, Soak (5 required) ASTM C-67 25
0830 Absorption, Boil (5 required) ASTM C-67 25
0840 Absorption, Saturation Coefficient (5 required) ASTM C-67 40
0850 Initial Rate of Absorption (5 required) ASTM C-67 35
I 0860 Efflorescence (5 required) ASTM C-67 45
0870 Efflorescence with Mortar (5 required) ASTM C-67 55
Task Steel Reinforcement Method Price $ ea.
I 0880 Tensile Test Up to No. 10 ASTM A-370 30
0885 Tensile Test, No. 11 and over ASTM A-370 45
0890 Bend Test, Up to NO.8 ASTM A-370 25
0892 Bend Test, No.9 and over ASTM A-370 45
0895 Processing Mill Certificates (per size and heat) 15
Task Structural Steel Method Price $ ea.
0900 Tensile Strength, Up to 100,0001bs ASTM A-370 35
0910 Tensile Strength, 100,000 to 200,0001bs ASTM A-370 40
0920 Bend Test ASTM A-370 25
0930 Pipe Flattening Test ASTM A-370 Quote
0940 Machining and Preparation of Samples ASTM A-370 40
0950 Brinell & Rockwell Hardness Test ASTM A-370 30
0955 Chemical Analysis, Carbon and Low Alloy Steel Quote
0895 Processing Mill Certificates (per size and heat) 15
\ Task Prestress Method Price $ ea.
1 0970 Prestress Wire ASTM A-416 140
0980 Sample Preparation 45
) 0960 Prestress Cable, 7 Wire (Breaking Strength/Modulus of Elasticity) ASTM A-416 150
,J Task Weld Procedure and Welder Qualifications Price $
1000 Welder CertificationlWeld Procedure Review (AWS/CWI) 65/hr. 59
, ! 1010 Weld Tensile Test 35 ea.
1020 Weld Bend Test 25 ea.
. i 1030 Weld-Macro Etch 40 ea.
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1040 Bolt Tensile Test 45 ea.
i I 0940 Machining and Preparation of Samples 40 ea.
.J Task Fireproofing Method Price $
2000 Unit Weight (Density) UBC Std. 7-6 35 ea.
it 2020 Cohesion/Adhesion UBC Std. 7-6 65/hr.
0205 Special Inspection Fireproofing 65/hr.
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Prepared lor City of Temecula Prices in bold reflect special rates. All other lIems will be 17781 Cowan . IlVine, CA 92614
. -=.ay 9, 2003 challled at the standard rate. Prices valid Iorl year. 949.253.5922 . Fax 949263.8843 . www.teratest.com
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Task Roofing Method Price $ Temecula $
'J 3000 Unit Weight 65/hr.
3010 Tile-Breaking Strength/Absorption (min. 5 samples/test) UBC 15-5 65 ea.
3011 Clay or Concrete Tile Title 24 Quote
0203 Special Inspection Roofing 65/hr.
'] Task Asphalt Concrete, General Testing Method Price $
0204 Special Inspection Asphalt 65/hr.
8002 Extraction, % Asphalt ASTM 02172 120 ea.
'1 8004 Extraction & Gradation ASTM 0 2172/C 136 165 ea.
8020 Unit Weight - Molded Specimen of Cores ASTM 0-118 35 ea.
528 Bulk Specific Gravity CTM 308 135 ea.
:J 523 Stabilometer Value CTM 366 200 ea.
8060 Maximum Density - MARSHALL ASTM 0-1559 130 ea.
8040 Maximum Density with Stability & Flow ASTM 0-1559 175 ea.
526 Bituminous Mixture Preparation CTM 304 50ea.
I Task Mix Design/Control Method Price $ ea.
9000 Mix Design - HVEEM Including Aggregate Tests per Design ASTM 0 Quote
1560/CTM 366
I 9010 Mix Design - MARSHALL Including Aggregate Tests per Design ASTM 0 1559 Quote
9020 Field Mix - HVEEM Stability per point ASTM 0 140
1560/CTM 366
9030 Field Mix - MARSHALL Stability per point ASTM 0 1559 140
] Task Moisture Test Method Price $
0222 Technician Moisture Testing 65/hr.
1101 Moisture Tests ASTM E-1907 50 ea.
] 1102 Moisture Retest ASTM E-1907 35 ea.
Task Electrical Price $
0206 Electrical Inspections 65/hr.
0215 Grounding Rod Soil Resistance Test 250 ea.
CalTrans Tests Method Price $ ea.
519 Relative Compaction' CTM 216 175
1 520 Soil & Aggregate Preparation & Seive (Fine & Coarse Aggregate)- CTM 201 & 202 250
j 315 Sand Equivalent - CTM 217 75
443 Moisture Content (Oven Dryin9) - CTM 226 15
521 Cleanness of Coarse Aggregate t CTM 227 75
, 522 Grading & Specific Gravity Calculation' CTM 105 55
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,J 432 R Value, Soils & Bases (Stabilometer) . CTM 301 250
523 Stabilometer Value' CTM 366 200
524 Compressive Strength - Concrete Cylinder t CTM 521 20
, , 525 Air Content of Fresh Concrete (Pressure Method) t CTM 504 65/hour
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, J 421 Flexural Strength of Concrete (simple beam w/ centerpointloading) t CTM 523 75
526 Bituminous Mixture Preparation t CTM 304 50
527 Moisture Content of Asphalt t CTM 370 50
1 528 Bulk Specific Gravity t CTM 308 135
,J 529 Sampling Highway Materials/Products (Roadway Structural Sections) t CTM 125 per hour
Quote
*soil t material - soil & materials
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Prepared for City ofTemecula
May9,2003
Prices in bold reflect special rates. All other ttems will be
charged at the standard rate. Prices valid forl year.
17781 Cowan. Irvine, CA 92614
949.253.5922 . Fax 949.263.8843 . www.teratest.com
'J
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1 Teratest Labs, Inc.
A LEIGHTON GROUP COMPANY
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REGULAR WORK HOURS:
] TIME AND ONE HALF:
DOUBLE TIME:
TRIPLE TIME:
]
SHIFT DIFFERENTIAL:
]
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MINIMUM HOURLY
CHARGES -Inspectors &
Technicians:
CYLINDER HOLDS:
OUTSIDE SERVICES:
MILEAGE CHARGES:
REPORT CHARGES:
FILE SEARCH &
REISSUE OF REPORT:
_.___ n.'..._._
REPORTING:
BASIS OF CHARGES - Prevalllna Waae
First 8 hours between 6:00 a.m. and 5:00 p.m. Monday through Friday, except holidays.
After 8 hours and up to 11 hours Monday through Friday and Saturdays.
After 11 hours and Sundays.
Holidays: New Years, Memorial Day, Independence Day, Veterans Day, Thanksgiving and the day
after Thanksgiving, Christmas Day, and Labor Day, the first Saturday following the first Friday in the
months of June and December.
Swing Shift: +10% for first 7% hours worked. Hrs. worked between 3:30pm-11pm.
Graveyard Shift: +15% for first 7 hours worked. Hrs. worked between 11pm-6am.
A. Speclallnspector (Field Time Only)
1. Cancellation of Inspections not canceled by 4:00 p.m. on preceding day..................2 Hours
2. One-half working day or less......................................................................................4 Hours
3. Over one-half working day/or begins before noon and extends into afternoon ..........8 Hours
B. General Inspector (Field Time Only)
1. One-half working day or less......................................................................................4 Hours
2. Over one-half working day/or begins before noon and extends into afternoon ..........8 Hours
C. Technician - Field/Concrete
1. Cancellation of Inspections not canceled by 4:00 p.m. on preceding day..................2 Hours
2. One-half working day or less......................................................................................4 Hours
3. Over one,halfworking day/or bElgi.ns .before. noon and .e.xtends into afternoon ..........8 Hours
After the 28-day breaks meet PSI required strength, all HOLDS will automatically be disposed of,
unless specified in writing prior to the 28-day break.
Outside services performed by others and direct costs expended on the client's behalf are charged at
cost plus 20%. These expenses Include equipment rental, parking, subsistence, photographs, co-
insurance endorsement, etc.
, Mileage for inspection, testing or sampling, over e 40-mile radius from our nearest facility and less than
. 100 miles will be charged at $.50 per mile. (No mileage charge to and from our office).
._u. _... _ ....
. Secretarial time will be charged at $40 per hour. A maximum of 6 copies will be issued for each report.
..........................-....
Minimum $50 will be charged for Secretarial Time.
All reports contracted for by the client will be considered confidential information and submitted direcUy
, to him. We will require the authorization of the client prior to distribution to parties other than those
i designated in Section 1701 of the Uniform Building Code or TiUe 24, Part 1, California Administrative
Code.
PAYMENT TERMS: , Payment for services is due upon presentation. If not paid within 30 days ofthe invoice date. they will
! be considered past due and a carrying charge of 1-1/2% per month (or the maximum rate allowed by
, law) will be added to the unpaid balance, until paid in full. Any Attorney's fees or other costs incurred In
! collecting any delinquent accounts will be added to the amounts due and shall be paid by the party
i invoiced.
. _ _ .-.T.m.-........... ...............-...............................---.....--...--....
1 COMPLETION: , Inspector will remain on job until discharged by competent authority.
.. "'CANcEiLUTION;'!'Nochargeii.made bE;iOre4:00p..;;:;:-;;ftheprec;di~gday:.SeeMI~imumCharge.
. ......... ......... ........-...-PARKiNii..rWh~~~~tfumlsh;jf~rl~~p~ct~~:.p~;;;i~g;;;iiib;;~h,,;:g;ci~~.;;id.byth~.i~~p~~;~~:.
1 .~-....~..::::~.~~~!~~~~~I~~~e_~ot~I~.s:~llbsi~El~ce:~e~:;;~i~~is~.e~f~~~~~0~~~~~~~~~~d.~i9~~~~~: .... .........
. J INSURANCE: I We carry all insurance required by law. The additional cost of any special Insurance required by the
i client, including increased policy limits, adding additional insured parties, and waivers of subrogation
i will be billed at cost plus 20 percent.
---LICENSES&PERMiTS; lTh-;-additi~~al ;st of a~y speciailic;~S;;~~~'p~;;its for ';P;:;;ject ~lib-;-bill;j~t COslpl~; 2op~;ce~i:~ .
_~____u_'"_._..______________+._._.._._._____.__~______..__.________.__________.___________...___.___.___~.___.____.__________..______..._...
PREVAILING WAGE: i The hourly rates provided are in compliance with prevailing wage requirements. As the rates for
i California Prevailing Wage increase, our hourly rates will increase accordingly.
.J
Prepared for City ofTemecula
9,2003
,.J
Prices in bold reflect special rates. All other "ems will be
cha at the standaRl rate. Prices valid for1 ear.
1n81 Cowan _ Irvine. CA 92614
949.253.5922 _ Fax 949263.8843 _ www.teratest.com
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Teratest Labs, Inc.
1
Materials Inspection & Testing Estimated Budget
for
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The above schedule of charges is based on the attached 2003 Matenals Inspection and Matenals Testing Fee
Schedule, dated 5/9/03. The rate for an leBO-certified special deputy inspector for this project is $58/hour at a daily
four-hour minimum. Any hours worked in excess of the four-hour minimum will be charged at the eight-hour dally
rate. Same-day cancellations will be charged as a four-hour minimum. Additional inspectors, overtime, and matenal
testing not stated above will be provided as requested with fees as presented in the attached fee schedule.
]
]
Our services are dependent upon the contractor's work schedule. The above estimate is based on the Special
Inspection and Matenals Testing Scope of Work. Vanances to the construction schedule resulting in additional hours.
tnps, or tests are subject to additional fees as shown in the above Estimate.
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CITY OF TEMECULA
ANNUAL AGREEMENT
FOR
PROFESSIONAL GEOTECHNICAUMATERIAL TESTING SERVICES
FOR
FISCAL YEAR 2003-2004
THIS AGREEMENT, is made and effective as of June 24, 2003, between the City of
Temecula, a municipal corporation ("City") and EnGEN Public Works Services, LLC,
("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 1,2003, and shall remain
and continue in effect until June 30, 2004, unless terminated or extended pursuant to the
provisions of this Agreement.
2. SERVICES. This is an annual contract for geotechnical/material testing
on an as needed basis. Consultant can perform any of the services and tasks described and set
forth in Exhibit A, attached hereto and incorporated herein as though set forth in full.
When there is a need for geotechnical/material testing on an as needed services,
the City will identify the specific scope of work, and request a fee schedule from the consultant.
The City will instruct the consultant to proceed with the work once the exact scope of work and the
associated fees are negotiated.
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. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the
Labor Code of the State of Califomia, the City Council has obtained the general prevailing rate of
per diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of workman needed to execute this Contract from the Director of the
Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be
obtained at cost at the City Clerk's office of T emecula. Consultant shall provide a copy of prevailing
wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as
a minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the labor Code. Pursuant to the provisions of 1775 of the labor Code,
Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion
thereof, each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates
for any work done under this contract, by him or by any subcontractor under him, in violation of the
provisions of the Contract.
5. PAYMENT.
a. The City agrees to pay Consultant monthly, in accordance with the payment rates
and terms and the schedule of payment as negotiated and as set forth in Exhibit B, Payment Rates
and Schedule, as modified on the consultant letter of June 27, 2001 attached hereto and
incorporated herein by this reference as though set forth in full, based upon actual time spent on
the tasks as directed by the City on an as needed basis. Consultant shall not bill the City for
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r:lagnnts\masterslannual contract2003-04\EnGen annual FY03-04/ajp
any travel time and expenses associated with it, nor shall he charge a set minimum number
of hours for each site visit. Any terms in Exhibit B other than the payment rates are null and void.
The total cumulative annual amount shall not exceed Sixty Thousand Dollars and No Cents
($60,000.00) for the total term of the Agreement unless additional payment is approved as provided
in this Agreement.
b. Consultant shall not be compensated for any services rendered in
connection with its performance of this Agreement unless such additional services are authorized in
advance and in writing by the City. Consultant shall be compensated for services in the amounts
and in the manner as agreed to by the Director of Public Works/City Engineer and Consultant at the
time City's written authorization is given to Consultant for the performance of said services. Any
additional work in excess of the amount above shall be approved by the City Council.
c. Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted between the first and fifteenth business day of each month, for services
provided in the previous month. Payment shall be made within thirty (30) days of receipt of each
invoice as to all nondisputed fees. If the City disputes any of consultant's fees it shall give written
notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the
invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or
terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10)
days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all
work under this Agreement, unless the notice provides otherwise. If the City suspends or
terminates a portion of this Agreement such suspension or termination shall not make void or
invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City
shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4.
7. DEFAULT OF CONSULTANT.
a. The Consultant's failure to comply with the provisions of this Agreement shall
constitute a default. In the event that Consultant is in default for cause under the terms of this
Agreement, City shall have no obligation or duty to continue compensating Consultant for any work
performed after the date of default and can terminate this Agreement immediately by written notice
to the Consultant. If such failure by the Consultant to make progress in the performance of work
hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of
the Consultant, it shall not be considered a default.
b. If the City Manager or his delegate determines that the Consultant is in
default in the performance of any of the terms or conditions of this Agreement, it shall serve the
Consultant with written notice of the default. The Consultant shall have (10) days after service
upon it of said notice in which to cure the default by rendering a satisfactory performance. In the
event that the Consultant fails to cure its default within such period of time, the City shall have the
right, notwithstanding any other provision of this Agreement, to terminate this Agreement without
further notice and without prejudice to any other remedy to which it may be entitled at law, in equity
or under this Agreement.
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8. 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 identi-
fied and readily accessible. Consultant shall provide free access to the representatives of City or
its designees at reasonable times to such books and records, shall give City the right to examine
and audit said books and records, shall permit City to make transcripts therefrom as necessary,
and shall allow inspection of all work, data, documents, proceedings and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a period of
three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this
Agreement, all original documents, designs, drawings, maps, models, computer files 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.
c. With respect to the design of public improvements, the Consultant shall not
be liable for any injuries or property damage resulting from the reuse of the design at a location
other than that specified in Exhibit A without the written consent of the Consultant.
9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect
and hold harmless the City, its officers, officials, employees and volunteers from and against any
and all claims, demands, losses, defense costs or expenses, including attomey fees and expert
witness fees, or liability of any kind or nature which the City, its officers, agents and employees may
sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to
property arising out of Consultant's negligent or wrongful acts or omissions 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.
10. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for
the duration of the contract insurance against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work hereunder by the
Consultant, its agents, representatives, or employees.
a. Minimum Scope of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability form
No. CG 00 01 11 85 or 88.
(2) Insurance Services Office Business Auto Coverage form CA 00 01
06 92 covering Automobile Liability, code 1 (any auto). If the
Consultant owns no automobiles, a non-owned auto endorsement to
the General Liability policy described above is acceptable.
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(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: $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
projecVlocation or the general aggregate limit shall be twice the
required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Worker's Compensation as required by the State of California;
Employer's Liability: One million dollars ($1,000,000) per accident
for bodily injury or disease.
(4) Professional Liability coverage: One million ($1,000,000) per claim
and in aggregate.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City Manager. At the option of the City
Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; orthe Consultant shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and defense
expenses.
d. Other Insurance Provisions. The general liability and automobile liability
policies are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the Consultant; products and
completed operations ofthe Consultant; premises owned, occupied
or used by the Consultant; or automobiles owned, leased, hired or
borrowed by the Consultant. The coverage shall contain no special
limitations on the scope of protection afforded to the City, its officers,
officials, employees or volunteers.
(2) For any claims related to this project, the Consultant's insurance
coverage shall be primary insurance as respects the City, its
officers, officials, employees and volunteers. Any insurance or self-
insured maintained by the City, its officers, officials, employees or
volunteers shall be excess of the Consultant's insurance and shall
not contribute with it.
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(3) Any failure to comply with reporting or other provisions of the
policies including breaches of warranties shall not affect coverage
provided to the City, its officers, officials, employees or volunteers.
(4) The Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect
to the limits of the insurer's liability.
(5) Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail, return receipt requested,
has been given to the City.
e. Acceotability of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self
insurance shall not be considered to comply with these insurance requirements.
f. Verification of Coveraae. Consultant shall furnish the City with original
endorsements effecting coverage required by this clause. The endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on
forms provided by the City. All endorsements are to be received and approved by the City before
work commences. As an alternative to the City's forms, the Consultant's insurer may provide
complete, certified copies of all required insurance policies, including endorsements effecting the
coverage required by these specifications.
11. 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.
12. 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.
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13. RELEASE OF INFORMATION.
a. All information gained by Consultant in performance of this Agreement shall
be considered confidential and shall not be released by Consultant without City's prior written
authorization. Consultant, its officers, employees, agents or subcontractors, shall not without
written authorization from the City Manager or unless requested by the City Attorney, voluntarily
provide declarations, letters of support, testimony at depositions, response to interrogatories or
other information concerning the work performed under this Agreement or relating to any project or
property located within the City. Response to a subpoena or court order shall not be considered
"voluntary" provided Consultant gives City notice of such court order or subpoena.
b. Consultant shall promptly notify City should Consultant, its officers,
employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of
deposition, request for documents, interrogatories, request for admissions or other discovery
request, court order or subpoena from any party regarding this Agreement and the work performed
thereunder or with respect to any project or property located within the City. City retains the right,
but has no obligation, to represent Consultant and/or be present at any deposition, hearing or
similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the
opportunity to review any response to discovery requests provided by Consultant. However, City's
right to review any such response does not imply or mean the right by City to control, direct, or
rewrite said response.
14. 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.
To City:
City of Temecula
Mailing Address:
P.O. Box 9033
Temecula, California 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Consultant:
EnGEN Public Works Services, LLC
41607 Enterprise Circle North, Suite 1
Temecula, California 92590
Attention: Gina L. LeSueur
15. ASSIGNMENT. The Consultant shall not assign the performance of this
Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of
the City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for
actual services performed up to, and including, the date of termination or as may be otherwise
agreed to in writing between the City Council and the Consultant.
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16. 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.
17. GOVERNING LAW. The City and Consultant understand and agree that the
laws of the State of Califomia shall govern the rights, obligations, duties and liabilities of the parties
to this Agreement and also govern the interpretation of this Agreement. Any litigation conceming
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
judgement, shall be entitled to reasonable attorney fees and litigation expenses for the relief
granted.
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. PROHIBITED INTEREST. No member, officer, or employee of the City of
Temecula or of a local public body shall have any interest, direct or indirect, in the contract of the
proceeds thereof during his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their
knowledge that no board member, officer or employee of the City of Temecula has any interest,
whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of
the contracting party other than the City of Temecula, and that if any such interest comes to the
knowledge of either party at any time, a full and complete disclosure of all such information will be
made, in writing, to the other party or parties, even if such interest would not be considered a
conflict of interest under Article 4 (commencing with Section 1090) or Article 4.6 9commencing with
Section 1220) of Division 4 of Title I of the Government Code of the State of California.
20. 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
the day and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONSULTANT
EnGEN Public Works Services, LLC
41607 Enterprise Circle North, Suite 1
Temecula, CA 92590
(909) 296-2230
By:
Osbjorn Bratene, President
By:
H. Wayne Baimbridge, CEO/CFO
(Signatures of two corporate officers required for Corporations)
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EXHIBIT A
TASKS TO BE PERFORMED
9
r:lagrmts\masterslannual contract2003-04\EnGen annual FY03-04/ajp
Jun-09-03 02:27P
P.02
;,~~:::~:.~i.:' Iil>iIiOGEN Comoration
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.lmQfdlln- ~1ll("OO'ol1( lr~'~ .lAMtJO!'f 1!:I_'lO. "lbl>>Wnlli Ir.:U4
.Co:_.WIIolllo\tll~ta.dt!'1 .""-l&l~orIlO'lI.ilM~.\tmt1l
ENVIRONMENTAllk GEOTECHNllAL ENulNEERINu NElWOR~
,Tunc 9, 200:\
Cay ofTemcculll
Public Works L>epw1l1l1Jnt
43200 Business Park Drive
Temec.:ula, Califumia 92590
(909) 694-6411 ff (909) 694-6475
Attention: I.aura 8ragg
Subj\.-ct: PropOllal for Annual Allreement for Gcoteehnical and Materi.l~ Testing SCI"I'ices
Dear Laura:
In lII:COrdance wilh our conversation today, EoGEN CorporatioD will not charge lhe City ..r
Temecululilr travel time to projects included in the above referenced llgrecmcllt. Addilionally.
there will be no minimum hour charges.
If you have any qU~'lions, please reel fiee III COlltact me.
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ORANGE COUNTY 0.., 2615 Orangt Ay. ue. Sant. An.. CA 92707 . ph....; (7141 845'4051"": 17,., 540-4052
I'~"',~..oi ~..........:.-l. ~. R SITE: www 81)OtU urJu~nm. f.-MAIL; cngol'll:ufll@fJ"9p.ncorp.com
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Company Brief
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~ . Proposal for City of Temecula
'+--l Annual Agreement
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(909) 296-2230 0 . Geotechnical Engineering
Fax: (909) 296-2237 U . Environmental Engineering
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0 . Project Management
Riverside County
4\607 Enterprise Circle North \U . Organization
Temecula, California 92590
(909) 296-2230/Fax 296-2237 ~
~ . Project References
Orange County Cj
h . Schedule of Professional Fees
2615 Orange A venue
Santa Ana, California 92707
(714) 546-405\ . Certificates Insurance
Visit our Web Page:
www.engencorp.com
Soils Engineering (Geotechnical) . Environmental Site Assessment
Engineering Geology. Laboratory Testing
Geology. Construction Materials Testing
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EnGEN Corporation appreciates the opportunity to provide this proposal for Geotechnical and
Materials Testing Services for the City of Temecula for Fiscal Year 2003-2004. EnGEN
Corporation is currently providing services under an annual contract with the City of Temecula
for fiscal year 2002-2003. It is our sincere hope to continue to provide these services for fiscal
year 2003-2004. This proposal is based on infonnation derived from your Request for
Statement of Qualifications (RFQ) dated April 16, 2003.
INTRODUCTION
EnGEN Corporation is a professional organization specializing in geotechnical soils
engineering, geologic evaluation, engineering geology, environmental site assessment,
laboratory testing and analyses, and construction materials testing. Our professional staff is
comprised of highly qualified Engineers, Geologists and Engineering Technicians whose
combined experience provide more than 20 years of specialized earth science and materials
engineering services in the Southem Califomia area.
EnGEN Corporation'. operating philosophy is "Pride in Professionalism". We incorporate the
"common sense" approach with technical expertise to accomplish project tasks with the client's
best interest in mind. This approach, as well as our reputation as a responsive, well-organized
finn has fueled our growth and enabled us to provide excellent customer service.
EnGEN'. corporate office, located in Temecula, California, houses a state-of-the-art laboratory
facility, as well as professional and administrative staff. This office and our office in Santa Ana,
California enable us to service both public and private sector clients in Orange, Riverside, San
Bernardino and San Diego counties.
PROJECT DESCRIPTION
It is our understanding that this contract will consist of various projects that will require
geotechnical and/or materials testing services until June, 2004. Each request for services will
be negotiated separately based on the services requested_
SCOPE OF SERVICES - COMPACTION & LABORATORY TESTING SERVICES
The scope of services for compaction and laboratory testing services shall include but not be
limited to the following:
IJ In-Place Moisture and Density Tests
IJ Laboratory Maximum Density and Optimum Moisture Tests
IJ Sieve Analysis Tests
IJ R-Value Tests
IJ Direct Shear Tests
IJ Consolidation or Collapse Tests
IJ Ph, Resistivity, Soluble Sulfate, and Chloride Tests
SCOPE OF SERVICES - GEOTECHNICAL INVESTIGATION SERVICES
EnGEN Corporation will provide final reports that include logs of borings summarizing the
subsurface conditions encountered, results of laboratory testing, and a plan indicating the
location of the explorations. The reports will also provide seismic design criteria based on
current code requirements.
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Geotechnical evaluation and recommendations within EnGEN Corporation's technical reports
will include but not be limited to the following:
lJ Standard Grading Recommendations
lJ Earthwork Recommendations
lJ Settlement Considerations And Calculations Following Cdmg Report 117.
lJ Surface And Subsurface Drainage Recommendations
lJ Foundation, Column And Slab Recommendations
lJ Slope Stability
lJ Soil Sulfate Content Implications And Impact On Foundation Design
lJ Utility Trench Backfill
lJ Lateral Earth Pressures Used For Retaining Wall Design
lJ Pavement Design
lJ Grading And Foundation Plan Review
lJ Construction Monitoring
lJ Pile Driving (If Necessary)
lJ Lateral Earth Pressures
lJ Discussion Of The Existing Pavement Or Site Conditions
lJ Recommendations For Removal Of Unsuitable Material
lJ Soil Ferrous Corrosivity And The Portland Cement Attack Potential
lJ Environmental Concems/Hazards
lJ Summary Of Findings And Recommendations
lJ Consulting Services Requiring Corrective and/or Remedial Recommendations, If
Necessary.
lJ Review Of Available Geologic Maps And Reports For The Region
lJ Discussion Of The Material Encountered In The Borings And Measured Engineering
Properties.
lJ Logs Of The Exploratory Borings Summarizing The Subsurface Conditions Encountered,
Results Of Laboratory Testing, And A Plan Indicating The Location Of The Explorations
lJ Review Of Project Plans & Specifications With Emphasis On Geotechnical And
Laboratory Materials Testing Services
lJ Attend Progress Meetings As Required
lJ Observation And Field Testing Services During All Phases Of Site Grading (Including
But Not Limited To Removal Of Unsuitable Soils, Approval Of Areas To Receive Fill And
Mass Fill Placement), Available 24 Hours Per Day
lJ Field Observation And Testing During Trench Backfill Operations
lJ Field Density Testing During Subgrade And Base Compaction
lJ Field Sampling & Testing Of Base And Asphalt Concrete
lJ All Necessary Laboratory Tests To Support Field Services And To Satisfy Caltrans And
Other Regulatory Agency Requirements
lJ Batch Plant Inspections
lJ Structure Backfill Observation And Testing
lJ Concrete Sampling And Testing
lJ '97 UBC Near Source Seismic Factors
lJ Dynamic Settlement Calculations
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UNDERSTANDING OF PURPOSE OF AGREEMENT & SCOPE OF WORK
EnGEN Corporation understands that the City of Temecula will require a complete service
package to accommodate day-to-day requirements of the City for geotechnical consulting and
testing services, This office has been providing all of the specialized engineering services
outlined in the RFQ for over 20 years in the Temecula Valley for public agencies and private
development companies. These services have included geotechnical investigations,
compaction testing, consulting services and laboratory testing. These services will be provided
on an "on-call" basis as project demands dictate.
Understanding of Soil and Geotechnical Conditions within the Temecula Valley:
Nearly 75% of the geotechnical services provided by EnGEN Corporation are within the
Temecula Valley. The previous work conducted in the City of Temecula by EnGEN Corporation
has shown that soil conditions within the region vary significantly in terms of stability, soil
settlement/consolidation and corrosive potential. Registered professional engineers and
geologists as well as trained technical engineering personnel are qualified to recognize the
potential for these characteristics should they be observed at each project during the
grading/construction operations. Any soils observed that may have the potential for these
characteristics, or that could have an adverse effect on the foundation, footings and/or
pavement areas will be sampled and tested in order to provide appropriate recommendations.
Understanding of Compaction Control Needs of the City of Temecula:
Clayey sands or slightly plastic and plastic soils will present some difficulty in compaction.
Where these soils are encountered, it will be recommended that efforts be made to mix with
clean sands in order to minimize the difficulty in achieving the required compaction. It will be
recommended that compaction operations only utilize mechanical equipment. Jetting within
trenches should be avoided. The technician(s) on site will provide the Contractor and the City
with daily field test results and report any unusual conditions to the appropriate project
professionals immediately. The standard of compaction frequency varies depending on the size
of the work area, volume and depth, however it is generally understood that one compaction
test should be taken for every two vertical feet (or lift) of backfilled material or compacted fill
placed. Each test is documented on a "daily field report" and plotted on a scaled site plan
showing the number, location and depth of test taken.
Understanding of Unstable Soil Conditions within the Temecula Valley:
Unstable soil conditions exist throughout the valley at varying depths from the surface to deep
beneath the surface and each site should be evaluated in order to determine if unstable
conditions exist. The evaluation process allows the engineer to examine the characteristics of
each soil horizon under controlled laboratory conditions, simulating the conditions and loads that
the soil would experience under varying conditions. The most damaging soil conditions that
have been observed to occur within the Temecula Valley include hydro-consolidation of
supporting soils, expansion potential impacting foundation stresses and slope stability.
Due to the variety of soil types that may be encountered throughout the City, some soils
encountered could potentially be unstable. It is recommended that all excavations be
configured in accordance with CAUOSHA requirements and be under technical observation at
all times when work is in progress.
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Understanding of Regional Geology:
EnGEN Corporation has conducted many geotechnical investigations within the City
boundaries, and as part of these studies the geology has been evaluated. The City of
Temecula is located in the seismically active region of Southern California. EnGEN Corporation
will address potential geologic hazards such as landsliding, liquefaction and faulting that might
be considered detrimental to any proposed development during its lifetime. The scope of work
proposed will include a technical review of any previous reports, site reconnaissance, and
presentation of findings, conclusions and recommendations of the geological analysis of the
data collected.
PROJECT APPROACH
Initial Work Plan Review Meeting: EnGEN Corporation will conduct an initial in-house review
of available maps, project plans, reports, specifications and any other documentation relevant to
the project. We will schedule a meeting with City staff, contractor and others, on-site, to discuss
project specifications and site conditions before construction begins. EnGEN Corporation will also
discuss the construction schedule with the contractor and City staff to properly plan our manpower
requirements in order to meet the contractor's projected schedule and attend progress meetings,
as required. A general fieldwork and safety plan meeting with field and technical staff will also be
conducted. We will meet with the City Project Engineer and other appropriate engineering staff, if
deemed necessary or required because of project changes or special circumstances uncovered
during the initial document review of technical data.
Site Reconnaissance: Potential subsurface exploration point locations will be planned by our
Geotechnical Engineer and staff. Site reconnaissance will consist of traversing the site,
conducting surface mapping, verifying access to all necessary areas, retrieving soil samples
and/or staking proposed boring locations to assist DIG ALERT. Exploratory borings will be drilled
within the proposed development area ranging in depth to a maximum of 50 feet below ground
surface or refusal, utilizing truck-mounted, hollow-stem auger drilling equipment. The actual
number of borings will be determined during the field operations. In-situ and bulk samples along
with standard penetration testing will be obtained at S.D-foot intervals or less to evaluate
subsurface geotechnical conditions for laboratory testing.
PROFESSIONAL STAFF
The following is a list of personnel that will be assigned to the City's projects:
Project Geotechnical Engineer. Osbjorn Bratene, GE 162
As President of EnGEN Corporation, Mr. Bratene is available should any special conditions be
encountered which require senior Geotechnical Engineer involvement throughout the duration of
the project. See attached resume.
Chief Executive Officer and Operations Manager. Wayne Baimbridge, REA
As the Operations Manager, Mr. Baimbridge is available should any conditions arise throughout
the duration of the project that may require professional judgment or observation of geological
conditions. See attached resume.
Field Operations AssistantlDay-to-Day Contact - Ryan Waroff
Mr. Waroff will serve as "Engineer-in-Charge", the liaison between EnGEN Corporation and the
City staff on all matters concerning each project and will coordinate the day-to-day activities
through completion. See attached resume.
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Field Supervisor
Field Supervisors oversee the field technician(s) on each project to ensure adequate
documentation of field and testing activities and maintain field scheduling and reporting
coordination with the Contractor and the City throughout each project duration.
Full-Time Senior Field Technician(s)
Senior Field Technician(s) will be available to observe and test on a full-time or as needed basis
throughout each project construction period. The technician(s) assigned to each project are
experienced in compaction operations, concrete sampling and testing in accordance with
oversight Agency guidelines and the State Board of Professional Engineers requirements.
The following is a list of subcontractors that may be used on the City's projects:
. ES Babcock - An analytical laboratory for performing chemical analysis.
. Martini Drilling - A drilling company used as an outside service for drilling.
. Cal Pac Drilling - A drilling company used as an outside service for drilling.
. Structural Systems Inspections - A company used for special inspections.
. Rice's Concrete - A company used for cutting and coring of asphalt and concrete
Resumes and references for all subcontractor's will be provided upon request. Each
subcontractor used by EnGEN Corporation is a firm used for many years by EnGEN with years
of experience and all of the necessary insurance and professional requirements to meet the
needs and minimum qualifications of the City of T emecula.
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EXHIBIT B
PAYMENT RATES AND SCHEDULE
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EnGEN Corporation
2003 SCHEDULE OF PROFESSIONAL AaES
HOURLY PERSONNEL CHARGEa
Prlnclpal........ ........................ ........................ ........................................... ;..................... $125.00
Registered Environmental Assessor (REA) ................................................................... $100.00
Geotechnical Engineer, (OE).. .......... ....................... ........ .............. .............. ....... ... .......... $95.00
Engineering Geologist, (CEG) ..........................."............................................................ $96.00
Project Engineer (RCE) ................................................................................................... $85.00
Project Geologist (RG) ...........................................................,........................................ $85.00
Staff EngineerlProject Mllnager ...................................................................................... $76.00
Staff Geologist...... ...... ................................................... ........... ....... ................................ $75.00
Field Supervisor............. ..... .... ...... ........................ ......................... ..................... ............. $75.00
Senior Technician ....... ................................................................... .................. ........... ..... $70.00
Senior Field Technician, Prevailing Wage Rate ......"...................................................... $90.00
Field Technician ......... ........................................................................... .......................... $65.00
Field Technician, Prevailing Wage Rate"........................................................................ $85.00
Lab Technician .. ..... ............... ......... ................................................................................. $60.00
Drafting Services ........ ..................................................................................................... $50.00
Word Processlng.. ............................... ........... ............................................... .... .............. $50.00
Clerical Services .................................................. ...... ......... ..... .............................. .......... $45.00
Special Inspector (Concrete, Mason 8. Welding)..................................................... On Request
Court Appearance, Depositions, and/or Govemmental Representations
(including Travel Time, hourly rate)....................................................................... $250.00
Please note there is a 00:> (1) hour minimum for services provided on a weekday and a four (4) hour
mllllmum per site 1I1s# for services pI'01Ilded on a weekend or holiday.
ADDITIONAL CHARGES
Vehicle Charge (mileage exceeding 50 miles round trfp from office), per mile ........ On Request
Postage or Special Detivery Services....................................................................... Cost + 15%
Outside ServiCes .............. ............................. ........................................................... Cost + 15%
Standard copies of repor1$, wet signed (each) ........................................................ On Request
Per Diem, (per day per person) ............................................................................... On Request
Overtime RateIHoliday Rate .................................................................................... $25.00Ihour
Prevailing Wage OIT Rate....................................................................................... $15.00Ihour
Prevailing Wage DIf Rate....................................................................................... $25.00Ihour
Prevailing Wage Holiday Rate...............................................................,................. $50.00Ihour
LABORATORY TESTING FEES
Laboratory testing fees are per test and do not reflect sample pick-up and delivery oharges or
out of ordinary sample prepal"lltlon time. Fees for additional tests available upon request.
SOIL TESTING
Maximum Dry Density / Optimum Moisture Content Relationships
a) ASTM D-1557,(Method A) ............................................................................. $125.00
b) ASTM D-1557, (Method B, C).......................,................................................. $150.00
c) ASTM D-1557, (Method D).............................................................................. $150.00
d) California Impact (CAL TRANS 216)................................................................ $125.00
Company PobIIcation$I_le 01 F_ 2003
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R<MaecI N......be<, 2003
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EnGEN Corporation
2003 SCHEDULE OF PROFESSIONAL FEES
SOIL TESTING, (COntinued)
Expansion Index, UBC 29-2 ............................................................................................ $90.00
Sand Equivalent (average of 3 points) ............................................................................ $90.00
Soluble Sulfate ................... ............. ........... .............. .... ...... ... ......... .... .................. ........... $45.00
Corrosion Analysis (p.H., Redox, Sat. Res., Sulfates)..................................................... $45.00
Atterberg limits (Plasticity Limit):................................................................................... $150.00
Consolidation, single point (collapse test) ....................................................................... $75.00
Consolidation, per additional loading point....................................,................................. $25.00
COnsolidation, In-sltu sample, time rate-ratio data (per increment).................................. $30.00
Direct Shear, In-sltu sample, saturated, 3 points ........................................................... $130.00
Direct Shear, rernolded sample, saturated, 3 points...................................................... $160.00
Hydrometer Analysis (minus No. 10 sieve material) ........................................................ $65.00
R~Value:
CAL TRANS 301.................................................................................................. $210.00
C.B.R. (3 points, excluding optimum moisture / max. density curve) .................. $300.00
Ring Density ............... ..,............................. .................. ....................... ... .......... ............... $15.00
Sieve Analysis, washed, 3/4" Max. ................................................................................ $100.00
Specific Gravity (+ No.4 Sieve Material) ......................................................................... $70.00
Specific Gravity (- NO.4 Sieve Material) .......................................................................... $80.00
Moisture COntentlDry Density.......................................................................................... $15.00
Miscellaneous Aggregate Testing. .................... ........... ....... .................. ..... .............. On Request
Other Specialty Testing (not listed above)............................................................... On Request
CONCRETE TESTING
Concrete Mix Design (review calculations only)..........................................................:.. $150.00
Flexural Strength, 6"x6"x24" beam .................................................................................. $45.00
Beams Cured but not tested (less than 28 days old)....................................................... $25.00
Compression Tests. Hold Samples. 6"x12" cylinder ........................................................ $20.00
Cylinders Canceled, Not Tested (less than 28 days old) ................................................. $15.00
MASONRY TESTING
COmpression Test, Hold Samples, Mortar or Grout Cylinders ............................(eaoh) $20.00
Compression Test, Masonry Unit, 3 required
(Net area also requires absorption and unit weight tests)........................ (each) $65.00
Absorption Test, Masonry Unit, 3 required
(Net area also requires unit weight test) ..................................................(each) $45.00
Unit Weight, Masonry Unit, 3 required................................................................ (each) $45.00
Moisture Content, Masonry Unit (as received), 3 required.................................. (each) $45.00
Lineal shrinkage, masonry unit, 3 required......................................................... (each) $85.00
Tensile Test on Masonry Block...........................................................................(each) $125.00
Shear Test on Masonry COre..............................................................................(each) $85.00
COmpression Test on Masonry Core .................................................................(each) $45.00
CompreSSion Test of Masonry Prisms S"xi6" (other sites on request) ..............(each) $125.00
Other Specialty Testing (I.e., not listed above) ........................................................ On Request
CClmpany Publlca1l0ns/SChedule of Fees, 2003
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RevIsed NlMlmber, 2002
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EnGEN Corporation
2003 SCHEDULE OF PROFESSIONAL FEES
ASPHALTIC CONCREtE TESTING
Specific Gravity (Compacted Sample)............................................................................. $45.00
Stabllometer Test (Sample Mixing - set of 3)................................................................. $270.00
Premixed Sarnple (set of 3) .............................................;.................................. $170.00
Extraction, % Bitumen and Sieve Analysis .................................................................... $175.00
Mal1hall Test, per Core Specimen, (stability and flow) ................................................. $150.00
Marshall Test, Maximum Density Only........................................................................... $150.00
Marihall Test, (Sample Preparation - set of 3) .............................................................. $275.00
Evaluation of On-Slte Failures..,.............................................................................. On Request
Other Specialty Testing (I.e., not listed above) ........................................................ On Request
MISCELLANEOUS SERVlOES
Coring Field Samples of Concrete, A.C., Masonry, etc. ~......................................... ,On Request
Reinforcing Steel, Structural Steel and High Strength Bolt Testing .........,.............. On Request
Portland or Asphaltic Cements, Liquid Asphalts, Ernulsions and Slurry Seals ........ On Request
Roofing Obsenratlons and Tests ............................................................................. On Request
Density of Sprayed Fireproofing ......................................................................... (each) $55.00
Asbestos P.L.M. Analysis ................................................................................... (each) $35.00
Company PubllcationslSchedule 01 Fees, 2003
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'Re.lsed November. 2002
ITEM 13
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANe
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/City Council
;rJ~ William G. Hughes, Director of Public Works/City Engineer
June 24, 2003
DATE:
SUBJECT:
Annual Professional Services Agreements for Engineering and Construction
Survey Services for Various Capital Improvement Projects for FY2003-2004
PREPARED BY:
Amer Attar, Principal Engineer - Capital Projects
Laura Bragg, Project Engineer - Capital Projects
RECOMMENDATION:
That the City Council:
1. Approve the annual agreement with Kevin Cozad & Associates Inc. in the amount of
$60,000.00 to provide as needed engineering and construction survey services; and
2. Approve the annual agreement with Project Design Consultants in the amount of $60,000.00
to provide as needed engineering and construction survey services; and
3. Authorize the Mayor to execute the agreements.
BACKGROUND: There are various projects described in the approved Capital
Improvement Program for Fiscal Years 2004 to 2008 that will require engineering and construction
survey services. The attached agreements are for two separate annual agreements to provide as
needed services and these services will be utilized on projects that are approved in the Capital
Improvement Program or for special projects that come up through out the year.
Two firms have been selected for annual agreements so that the City is assured that at least one
firm will be available when needed. Once the annual agreements are executed, each service
request will be negotiated separately with one of the two firms and may contain some or all of the
following services:
. Research existing survey data such as maps, records of survey, monument ties, and
benchmarks.
. Locate existing monuments.
. Performing boundary and control surveys.
. Prepare legal descriptions and plat maps for right-of-way acquisition.
. Perform Aerial mapping and topographic surveys.
. Establish and verify horizontal and vertical control.
. Locate horizontally to 0.1 :!: feet all existing facilities.
. Performing field surveying for project design purposes.
R:\AGENDA REPQRTS\2003\062403\ANNUAL CONTRACT SurveyAGR.DOC
. Perform construction staking including center lines, limits of clearing and grubbing and
construction, slopes, saw cuts, edge of pavement, layout lines, drainage structures, curb &
gutters, etc.
The actual number of projects and costs are not known at this time. Payment will be based upon
actual time spent on tasks as directed by the Director of Public Works/City Engineer.
FISCAL IMPACT: The Consultant will submit a cost proposal for each service request. Once a
scope of service and a schedule of fees are negotiated, funds are allocated from the corresponding
project budget. Only approved CIP projects will utilize the services under these agreements, unless
directed otherwise by the City Manager or City Council.
ATTACHMENTS:
1. Agreement with Kevin Cozad & Associates, Inc.
2. Agreement with Project Design Consultants
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R:\AGENDA REPDRTS\2003\062403\ANNUAL CONTRACT Survey.AGR.DOC
CITY OF TEMECULA
ANNUAL AGREEMENT
FOR
PROFESSIONAL ENGINEERING & CONSTRUCTION SURVEY SERVICES
FOR
FISCAL YEAR 2003.2004
THIS AGREEMENT, is made and effective as of June 24, 2003, between the City of
Temecula, a municipal corporation ("City") and Kevin Cozad & Associates, Inc., ("Consultant"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. TERM. This Agreement shall commence on July 1,2003, and shall remain
and continue in effect until June 30, 2004, unless terminated or extended pursuant to the provisions
of this Agreement.
2. SERVICES. This is an annual contract for engineering and construction
survey services on an as needed basis. Consultant can perform any of the services and tasks
described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in
full.
When there is a need for engineering and construction survey on an as needed
services, the City will identify the specific scope of work, and request a fee schedule from the
consultant. The City will instruct the consultant to proceed with the work once the exact scope of
work and the associated fees are negotiated.
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. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the
Labor Code of the State of Califomia, the City Council has obtained the general prevailing rate of
per diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of workman needed to execute this Contract from the Director of the
Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be
obtained at cost at the City Clerk's office of T emecula. Consultant shall provide a copy of prevailing
wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as a
minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code,
Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion
thereof, each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates
for any work done under this contract, by him or by any subcontractor under him, in violation of the
provisions of the Contract.
5. PAYMENT.
a. The City agrees to pay Consultant monthly, in accordance with the payment rates
and terms and the schedule of payment as negotiated and as set forth in Exhibit B, Payment Rates
and Schedule, as modified on the consultant letter of June 27, 2001, attached hereto and
incorporated herein by this reference as though set forth in full, based upon actual time spent on the
tasks as directed by the City on an as needed basis. Consultant shall notblll the City for any
travel time and expenses associated with It, nor shall he charge a set minimum nurnber of
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hours for each site visit. Any terms in Exhibit B other than the payment rates are null and void.
The total cumulative annual amount shall not exceed Sixty Thousand Dollars and No Cents
($60,000.00) for the total term of the Agreement unless additional payment is approved as provided
in this Agreement.
b. Consultant shall not be compensated for any services rendered in connection
with its performance of this Agreement unless such additional services are authorized in advance
and in writing by the City. Consultant shall be compensated for services in the amounts and in the
manner as agreed to by the Director of Public Works/City Engineer and Consultant at the time City's
written authorization is given to Consultantfor the performance of said services. Any additional work
in excess of the amount above shall be approved by the City Council.
c. Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted between the first and fifteenth business day of each month, for services
provided in the previous month. Payment shall be made within thirty (30) days of receipt of each
invoice as to all non disputed fees. If the City disputes any of consultant's fees it shall give written
notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the
invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or
terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10)
days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all
work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates
a portion of this Agreement such suspension or termination shall not make void or invalidate the
remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City
shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4.
7. DEFAULT OF CONSULTANT.
a. The Consultant's failure to comply with the provisions of this Agreement shall
constitute a default. In the event that Consultant is in default for cause under the terms of this
Agreement, City shall have no obligation or duty to continue compensating Consultant for any work
performed after the date of default and can terminate this Agreement immediately by written notice
to the Consultant. If such failure by the Consultant to make progress in the performance of work
hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of
the Consultant, it shall not be considered a default.
b. If the City Manager or his delegate determines that the Consultant is in default
in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant
with written notice of the default. The Consultant shall have (10) days after service upon it of said
notice in which to cure the default by rendering a satisfactory performance. In the event that the
Consultant fails to cure its default within such period of time, the City shall have the right,
notwithstanding any other provision of this Agreement, to terminate this Agreement without further
notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under
this Agreement.
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8. 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 identi-
fied and readily accessible. Consultant shall provide free access to the representatives of City or its
designees at reasonable times to such books and records, shall give City the right to examine and
audit said books and records, shall permit City to make transcripts therefrom as necessary, and
shall allow inspection of all work, data, documents, proceedings and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a period of
three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this
Agreement, all original documents, designs, drawings, maps, models, computer files 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.
c. With respect to the design of public improvements, the Consultant shall not
be liable for any injuries or property damage resulting from the reuse of the design at a location
other than that specified in Exhibit A without the written consent of the Consultant.
9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect
and hold harmless the City, its officers, officials, employees and volunteers from and against any
and all claims, demands, losses, defense costs or expenses, including attorney fees and expert
witness fees, or liability of any kind or nature which the City, its officers, agents and employees may
sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to
property arising out of Consultant's negligent or wrongful acts or omissions 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.
10. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for
the duration of the contract insurance against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work hereunder by the
Consultant, its agents, representatives, or employees.
a. Minimum Scope of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability form
No. CG 00 011185 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.
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(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: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial General Liability
Insurance or other form with a general aggregate limit is used, either
the general aggregate limit shall apply separately to this
project/location or the general aggregate limit shall be twice the
required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Worker's Compensation as required by the State of Califomia;
Employer's Liability: One million dollars ($1,000,000) per accident for
bodily injury or disease.
(4) Professional Liability coverage: One million ($1,000,000) per claim
and in aggregate.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City Manager. At the option of the City
Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and defense
expenses.
d. Other Insurance Provisions. The general liability and automobile liability
policies are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the Consultant; products and completed
operations of the Consultant; premises owned, occupied or used by
the Consultant; or automobiles owned, leased, hired or borrowed by
the Consultant. The coverage shall contain no special limitations on
the scope of protection afforded to the City, its officers, officials,
employees or volunteers.
(2) For any claims related to this project, the Consultant's insurance
coverage shall be primary insurance as respects the City, its officers,
officials, employees and volunteers. Any insurance or self-insured
maintained by the City, its officers, officials, employees or volunteers
shall be excess of the Consultant's insurance and shall not contribute
with it.
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to
the City, its officers, officials, employees or volunteers.
(4) The Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect to
the limits of the insurer's liability.
(5) Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail, return receipt requested,
has been given to the City.
e. Acceotability of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self
insurance shall not be considered to comply with these insurance requirements.
f. Verification of Coveraae. Consultant shall furnish the City with original
endorsements effecting coverage required by this clause. The endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on
forms provided by the City. All endorsements are to be received and approved by the City before
work commences. As an alternative to the City's forms, the Consultant's insurer may provide
complete, certified copies of all required insurance policies, including endorsements effecting the
coverage required by these specifications.
11. 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.
12. 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.
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13. RELEASE OF INFORMATION.
a. All information gained by Consultant in performance of this Agreement shall
be considered confidential and shall not be released by Consultant without City's prior written
authorization. Consultant, its officers, employees, agents or subcontractors, shall not without written
authorization from the City Manager or unless requested by the City Attorney, voluntarily provide
declarations, letters of support, testimony at depositions, response to interrogatories or other
information concerning the work performed under this Agreement or relating to any project or
property located within the City. Response to a subpoena or court order shall not be considered
"voluntary" provided Consultant gives City notice of such court order or subpoena.
b. Consultant shall promptly notify City should Consultant, its officers,
employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of
deposition, request for documents, interrogatories, request for admissions or other discovery
request, court order or subpoena from any party regarding this Agreement and the work performed
thereunder or with respect to any project or property located within the City. City retains the right,
but has no obligation, to represent Consultant and/or be present atany 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.
14. 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.
To City:
City of Temecula
Mailing Address:
P.O. Box 9033
Temecula, California 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Consultant:
Kevin Cozad & Associates, Inc.
151 South Girard Street
Hemet, California 92544-4462
Attention: Kevin B. Cozad, President
15. ASSIGNMENT. The Consultant shall not assign the performance of this
Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the
City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for
actual services performed up to, and including, the date of termination or as may be otherwise
agreed to in writing between the City Council and the Consultant.
16. 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.
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17. 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
judgement, shall be entitled to reasonable attorney fees and litigation expenses for the relief
granted.
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 orwritten, 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. PROHIBITED INTEREST. No member, officer, or employee of the City of
Temecula or of a local public body shall have any interest, direct or indirect, in the contract of the
proceeds thereof during his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their
knowledge that no board member, officer or employee of the City of Temecula has any interest,
whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of
the contracting party other than the City of Temecula, and that if any such interest comes to the
knowledge of either party at any time, a full and complete disclosure of all such information will be
made, in writing, to the other party or parties, even if such interest would not be considered a conflict
of interest under Article 4 (commencing with Section 1090) or Article 4.6 9commencing with Section
1220) of Division 4 of Title I of the Government Code of the State of California.
20. 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attomey
CONSULTANT
Kevin Cozad & Associates, Inc.
151 S. Girard Sl.
Hemet, CA 92544-4462
(909) 652-4454
Kevin B. Cozad, President
Kevin B. Cozad, Secretary
(Signatures of two corporate officers required for Corporations)
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EXHIBIT A
TASKS TO BE PERFORMED
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KEVIN COZAD
! &ASSOCIATESJ INC.
RECEIVED
JUN 1 2 2003
. CIVIL AND STRUCTURAL ENGINEERS
. MUNICIPAL CONSULTANTS
. SURVEYORS.! GPS
. PLANNERS
CllY OF TEMECULA
EN INE I G DEPARTMENT
June 10.2003
Laura Bragg
Capital Projects
City of Temecula
PO Box 9033
Temecula, CA 92589-9033
Fax - 693-3929
RE: ANNUAL AGREEMENT FOR SURVEYING SERVICES
Dear Laura,
This letter is to confirm that Kevin Cozad & Associates, Inc. can provide consulting surveying
services to the City of Temecula as part of the City's Annual Agreement. Kevin Cozad &
Associates, Inc. will not charge for travel time and there will be no minimum amount of hours
for individual job site trips during surveying.
If you have any questions regarding our services or the Annual Agreement, please don't
hesitate to call me.
Thanks,
~
151 South Girard Street. Hemet, CA 92544-4462
909/652-4454 . FAX: 909/766-8942 . kbcozad@kbcozad.com
Annual Agreement for Engineering
and Construction Survey Services
City of Temecula
Statement of Qualifications
May 9, 2003
STATEMENT OF QUALIFICATIONS FOR ANNUAL
ENGINEERING AND CONSTRUCTION SURVEY SERVICES
The City of Temecula is continuing to implement an aggressive Capital Improvements Project
Program to expand and improve the city's infrastructure. As part of the program, the City of
Temecula requires professional engineering and construction surveying services for the planning,
design and construction of new facilities and the improvement and maintenance of existing
facilities. This may include research, boundary and control surveys, topographic surveys, aerial
topographic surveys, and construction surveying. Kevin Cozad & Associates, Inc. has the staff
and experience to provide these services to the City of Temecula.
We believe our firm can provide the best ser'llice to the City because:
. We maintain a manageable staff providing consulting services only to a small number of
municipal clients. As a result, you get our best tearn with one of our principals as
project rnanager.
. We have twenty-6ix years of experience meeting City, County and Caltrans standards.
· Our engineers are also surveyors. We see the project from the perspective of the office
and the field. Our experience in surveying, roadway design. traffic signalization, and such
diverse areas as hydrology, hydraulics, culvert and bridge design, sound wall design,
retaining wall design, environmental assessment, or construction administration means our
team can assist the City with all aspects of the project.
. We have provided similar services to most cities within Western Riverside County.
. Although. we can provide our own in-house surveying services, landscape plans, signing
and striping plans, traffic control plans, soil erosion control plans, right-of-way plans and
other speciality services, we also do not hesitate to rely on subconsultants for traffic
engineering, geotechnical services or additional surveying services.
· Before we begin a project, we prepare a detailed list of tasks required to complete the
project The detailed tasks proVide a basis for estimating our services, maintaining control
and providing a scope of services to be included with the contract.
1
Kevin Cozad & Associates, Inc.
Annual Agreement for Engineering
and Construction Survey Services
City of Temecula
Statement of Qualifications
May 9, 2003
I INTRODUCTION TO KEVIN COZAD & ASSOCIATES, INC. I
Kevin Cozad & Associates, Inc. is a full service consutting engineering firm that, since 1977, has
provided civil engineering, structural engineering, planning, surveying, environmental assessment,
and construction administration services to a wide range of public agencies throughout Southem
California. Our highly qualified team of principles and professionals with extensive consulting
experience will apply their expertise with Eagle Point Road Calc and TDS data collection software
to your projects. Utilizing 100% CAD-based design and analysis, we can also provide fully
compatible AutoCAD or Micro Station computerized files to the City of Ter:necula.
Currently, Kevin Cozad & Associates, Inc. is working with the City of Temecula, the Eastern
Municipal Water District and the Riverside County Transportation Department as "Qualified
Consultants" providing engineering, surveying and environmental services for multiple projects.
During the past 25 years, we have also provided services to the cities of Riverside, Moreno Valley,
Hemet, San Jacinto, Perris, Loma Linda and San Bemardino; school districts; hospital districts;
Rancho California Water District, Elsinore Valley Municipal Water District, Lake Hemet Municipal
Water District, the University of Redlands, Cal Poly University in Pomona, and the University of
California, Riverside.
Kevin Cozad & Associates, Inc. performs our own in-house surveying with staff members that
are surveyors and that also have significant office design experience. The survey crew uses
"state-of-the-art" survey equipment including "robotic" electronic total stations with vertical axis
compensation and full data collection interface with TDS data collection software for fast and
efficient data collection, stake-out and transfer to office computers. Kevin Cozad & Associates,
Inc. also utilizes GPS software for large scale control and aerial targeting surveys.
I
FIRM DESCRIPTION AND ORGANIZATION
I
Kevin Cozad & Associates, Inc. 's staff that will be assigned to your projects includes three civil
engineers, two dual licensed in surveying, one project engineer who is a Licensed Land Surveyor,
and two with Land Surveyor-In-Training certificates. All staff members have both extensive
professional design and surveying experience. Kevin Cozad & Associates, Inc. believes the key
to quality control is to assign the same professional to the survey crew that will be performing the
in-house design for projects. In this way, our staff becomes intimately familiar with the type and
accuracy of control and topographic data required by the design professional to prepare
improvement plans and the requirements of the contractor during construction.
2
Kevin Cozad & Associates, Inc.
Annual Agreement for Engineering
and Construction Survey Services
City of Temecula
Statement of Qualifications
May 9, 2003
~
AVAILABLE SERVICES
I
. Preliminary Research & Surveying - Survey research at the City of Temecula, the
County of Riverside, Riverside County Flood Control and local utilities to obtain
both recorded and unrecorded survey maps, monument ties and benchmarks.
. Research and analyze the existing recorded and unrecorded survey maps and
compare to field monuments and field conditions. Review title reports and deeds
to determine property boundaries and control.
. Obtain traffic control and encroachment-permits from the City, the County and
Caltrans to enter the public right-of-way during construction surveying.
Provide traffic control during construction surveying in the public right-of-way.
. Perform boundary and control surveys using record information and monument ties
to locate existing monuments for street centerline and property lines for control
mapping. At Kevin Cozad & Associates, Inc.'s option, global positioning system
(GPS) equipment may be used for either control or topographic surveying.
. Utilizing Riverside County benchmark NGVD 29 datum obtained from the County,
the City or MWD, Kevin Cozad & Associates, Inc. can establish and verify vertical
control and provide topographic surveying, construction surveying or large scale
aerial mapping. Set 4"-wide 4' X 4' aerial targets with X, Y, Z coordinates for
horizontal and vertical control for aerial topographic surveying. Provide closure
and reference maps to aerial survey firm for preparation of the aerial topographic
survey map.
· Perform field topographic surveys to collect field data, spot elevations and surface
features of utilities with sufficient over1ap for design of improvements for
construction utilizing robotic total stations with TDS data collection software.
Hardscape physical features will be located both horizontally and ver1ically within
.02:t foot accuracy. Natural ground features will be located within .10 :t foot
accuracy.
. Digital data reduction oftopographic information, record utility locations, and aerial
topographic data to a three-dimensional AutoCAD 14, 2000 or Intergraph .DGN
compatible file.
3
Kevin Cozad & Associates, Inc.
Annual Agreement for Engineering
and Construction Survey Services
City of Temecula
Statement of Qualifications
May 9. 2003
. Perform construction surveying for road and facility improvements utilizing the
design engineer's CAD file, if available. Meet with the City and the contractor and
determine the exact staking requirements for the project. Set off-set stakes, blue
tops and other construction stakes required by the contractor to perform the
grading and the construction of facilities. Perform office calculations for field stake
out and provide cut sheets and control information to the City and the contractor.
. Kevin Cozad & Associates, Inc. will also submit to the City:
A. Utility location maps signed and stamped by Brian Fox, Professional Land
Surveyor No. 7171, color coded per Caltrans utility mapping standards.
B. Survey notes for the project route.
C. Record maps collected from utility companies or public agencies for the
project route.
I
ADDITIONAL SERVICES
~
Kevin Cozad & Associates, Inc. can also provide the following additional services to the
City:
. Utility Research - Obtain available maps for water, sewer, electricity, gas,
telephone, cable TV, and other known utilities in the project area. The results of
the utility research can be added to the digital survey data file containing the
topography.
. Field Locating of Existing Utilities - Verify surface utility markings along the project
route. Above ground power and telephone pOles can be field verified. Overhead
wires can be located per record information.
. Research for the Acquisition of Right-of-Way - Research and obtain existing right-
of-way documents and plot the existing right-of-way for review by the City. Prepare
legal descriptions and plat maps for additional right-of-way and coordinate
acquisition of right-of-way with the City.
. Coordination with Utility Purveyors - Meet with utility purveyors to coordinate the
design of utilities that must be relocated for new construction. Redesign facilities,
prepare construction cost estimates and prepare legals and plat maps for
additional easements.
4
. Kevin Cozad & Associates, Inc.
Annual Agreement for Engineering
and Construction Survey Services
City of Temecula
Statement of Qualifications
May 9, 2003
. Potholing - Additional subsurface utility exploration can be performed by potholing
to accurately verify location and elevation of underground crossings. All
topographic information and utility locations will be submitted to City staff for review
in order to determine the alignment and to assign pothole locations. Assist City
staff in determining location and ultimate number of potholes.
. Three-Dimensional Utility File - Plot available record and field verified underground
and overhead utility information on the utility location map. Utility information will
be plotted as a separate 3-dimensional digital file representing utility locations
within the project limits. Utilities can be color coded per Caltrans Utility Mapping
Standards.
. - State Plane Coordinates - Assignment of state plane-coordinates NAD-83 (CCS-
83) Zone 6, California State Plane Coordinate System, can be used at control
points along the route.
. Overall Project Feasibility - Review preliminary infonnation to determine the overall
feasibility of project, considering topography, existing utilities and conceptual
design. Prepare preliminary construction cost estimates for City review.
. Project Management - Provide project management and coordination services of
design consultants and processing through agencies for the City.
. Construction Administration and Inspection Services - Monitor compliance with
plans, contracts and specifications. Review change orders, determine percentage
completion and verify quality control.
. Prepare traffic control and barricade plans for construction.
. Full color photographic exhibits of facility or project routes.
. Video tape records of routes or sites before and after construction.
5
Kevin Cozad & Associates, Inc.
EXHIBIT B
PAYMENT RATES AND SCHEDULE
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KEVIN COZAD
! &ASSOCIATES,INC.
. CIVIL AND STRUCTURAL ENGINEERS
. MUNlClPAL CONSULTAIfTS
. SURVEYORS' GPS
· PlANNERS
SCHEDULE Of FEES
November 1, 2001
GENERAL SCOPE OF SERVICES
Kevin Cozad & Associates, 1m:. provides services In the fields of civil engineering, structural
engineering, and land surveying In accordance with presently accepted professional practices.
Kevin Cozad & As5ocIates, Inc. does not provide &efVices relatiog 10 COIl$\tUction safety and
shan be held hannless by the contra<:tor from arry lability In lhIs regard. In the event that the client
requests tennlnation of WOIk prior to Is completion. we reserve the ri9ht to complete, at the client's
expense, such analysis and records as are considered necessary by us to place our files In order
and/or to protect our professional reputation.
PERSONNEL CHAR~ES . RATES PER HOUR
Principal CivD EnglneerlPrlndpalland SurveyorlStrudurcll Ell9ineer .............. 160.00
Project Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 140.00
Project Engineer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 120.00
CAD Drafting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 80.00
AdmiolistlatWelProjeet Coordination ......................................... 75.00
Typing, printing . . . . ~ . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 45.00
Survey. OffICe Analysis .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 120.00
Survey Crew with RObotiQ Total Station (4 hr. minimum) ........................ 195.00
(Travel time charged portal to portal)
Survey Crew w/ GPS ........................................ Estimated by projed
OTHER CHARGES
Expert Witness - Deposition andlor Court appearance. . . . . . . . . . . . . . . Two times hourly rate
Expert Winess - Research, Case Review and/or Preparation . . . . . . . . . .. Normal hOUrly rate
Mileagetol'lndfrom meetings or project site .............................. $0.351mHe
Blueprints, DuprlCiltill9. Photography, Binding, etc. . . . . . . . . . . . . . . . . . . , . . . " Cost + 200/.
Telephone calls, Postage.. . . . . . .. . .. .. .. .. . . . . . .. . . . . .. .. .. .. . . . . . .. Cost + 20%
Field Supplies (stakes. monuments, etc.) .. . . . . .. . . . . . . .. . . . . . . . . . . . . .. .. Cost + 200/.
TERMS OF PAYMENT
All services wUl be progreSs billed weekly, and an invoices are due and payable when Issued unless
otherwiSe agreed. Retainers are required for all projects. Our fee S<:hedule is based upon prompt
payment of fees. Interest will accrue allhe rate of 1 ~ percent of the invoice total per monlh on invoices
30 days okl or older. If suit or action is instituted to collect any sum due. the c1'l8Ilt shall be liable for
llttorney's fee1l11nd court costs.
151 South Girard Street . HemeL CA 92544-4462
909/652-4454 . FAX: 909/766-8942 . IIbcoZad@kbcozad.com
CITY OF TEMECULA
ANNUAL AGREEMENT
FOR
PROFESSIONAL ENGINEERING & CONSTRUCTION SURVEY SERVICES
FOR
FISCAL YEAR 2003.2004
THIS AGREEMENT, is made and effective as of June 24, 2003, between the City of
Temecula, a municipal corporation ("City") and Project Design Consultants, ("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 1,2003, and shall remain
and continue in effect until June 30, 2004, unless terminated or extended pursuant to the provisions
of this Agreement.
2. SERVICES. This is an annual contract for engineering and construction
survey services on an as needed basis. Consultant can perform any of the services and tasks
described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in
full.
When there is a need for engineering and construction survey on an as needed
services, the City will identify the specific scope of work, and request a fee schedule from the
consultant. The City will instruct the consultant to proceed with the work once the exact scope of
work and the associated fees are negotiated.
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. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the
Labor Code of the State of Califomia, the City Council has obtained the general prevailing rate of
per diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of workman needed to execute this Contract from the Director of the
Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be
obtained at cost at the City Clerk's office of T emecula. Consultant shall provide a copy of prevailing
wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as a
minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code,
Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion
thereof, each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates
for any work done under this contract, by him or by any subcontractor under him, in violation of the
provisions of the Contract.
5. PAYMENT.
a. The City agrees to pay Consultant monthly, in accordance with the payment rates
and terms and the schedule of payment as negotiated and as set forth in Exhibit 8, Payment Rates
and Schedule, as modified on the consultant letter of June 27, 2001, attached hereto and
incorporated herein by this reference as though set forth in full, based upon actual time spent on the
tasks as directed by the City on an as needed basis. Consultant shall not bill the City for any
travel time and expenses associated with it, nor shall he charge a set minimum nurnber of
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hours for each site visit. Any terms in Exhibit B other than the payment rates are null and void.
The total cumulative annual amount shall not exceed Sixty Thousand Dollars and No Cents
($60,000.00) for the total term of the Agreement unless additional payment is approved as provided
in this Agreement.
b. Consultant shall not be compensated for any services rendered in connection
with its performance of this Agreement unless such additional services are authorized in advance
and in writing by the City. Consultant shall be compensated for services in the amounts and in the
manner as agreed to by the Director of Public Works/City Engineer and Consultant at the time City's
written authorization is given to Consultant for the performance of said services. Any additional work
in excess of the amount above shall be approved by the City Council.
c. Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted between the first and fifteenth business day of each month, for services
provided in the previous month. Payment shall be made within thirty (30) days of receipt of each
invoice as to all nondisputed fees. If the City disputes any of consultant's fees it shall give written
notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the
invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or
terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10)
days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all
work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates
a portion of this Agreement such suspension or termination shall not make void or invalidate the
remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City
shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4.
7. DEFAULT OF CONSULTANT.
a. The Consultant's failure to comply with the provisions of this Agreement shall
constitute a default. In the event that Consultant is in default for cause under the terms of this
Agreement, City shall have no obligation or duty to continue compensating Consultant for any work
performed after the date of default and can terminate this Agreement immediately by written notice
to the Consultant. If such failure by the Consultant to make progress in the performance of work
hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of
the Consultant, it shall not be considered a default.
b. If the City Manager or his delegate determines that the Consultant is in default
in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant
with written notice of the default. The Consultant shall have (10) days after service upon it of said
notice in which to cure the default by rendering a satisfactory performance. In the event that the
Consultant fails to cure its default within such period of time, the City shall have the right,
notwithstanding any other provision of this Agreement, to terminate this Agreement without further
notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under
this Agreement.
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8. 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 identi-
fied and readily accessible. Consultant shall provide free access to the representatives of City or its
designees at reasonable times to such books and records, shall give City the right to examine and
audit said books and records, shall permit City to make transcripts therefrom as necessary, and
shall allow inspection of all work, data, documents, proceedings and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a period of
three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this
Agreement, all original documents, designs, drawings, maps, models, computer files 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.
c. With respect to the design of public improvements, the Consultant shall not
be liable for any injuries or property damage resulting from the reuse of the design at a location
other than that specified in Exhibit A without the written consent of the Consultant.
9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect
and hold harmless the City, its officers, officials, employees and volunteers from and against any
and all claims, demands, losses, defense costs or expenses, including attorney fees and expert
witness fees, or liability of any kind or nature which the City, its officers, agents and employees may
sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to
property arising out of Consultant's negligent or wrongful acts or omissions 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.
10. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for
the duration of the contract insurance against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work hereunder by the
Consultant, its agents, representatives, or employees.
a. Minimum Scope of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability form
No. CG 00 01 11 85 or 88.
(2) Insurance Services Office Business Auto Coverage form CA 00 01
06 92 covering Automobile Liability, code 1 (any auto). If the
Consultant owns no automobiles, a non-owned auto endorsement to
the General Liability policy described above is acceptable.
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(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: $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
projecVlocation or the general aggregate limit shall be twice the
required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Worker's Compensation as required by the State of Califomia;
Employer's Liability: One million dollars ($1 ,000,000) per accident for
bodily injury or disease.
(4) Professional Liability coverage: One million ($1,000,000) per claim
and in aggregate.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City Manager. At the option of the City
Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and defense
expenses.
d. Other Insurance Provisions. The general liability and automobile liability
poliCies are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the Consultant; products and completed
operations of the Consultant; premises owned, occupied or used by
the Consultant; or automobiles owned, leased, hired or borrowed by
the Consultant. The coverage shall contain no special limitations on
the scope of protection afforded to the City, its officers, officials,
employees or volunteers.
(2) For any claims related to this project, the Consultant's insurance
coverage shall be primary insurance as respects the City, its officers,
officials, employees and volunteers. Any insurance or self-insured
maintained by the City, its officers, officials, employees or volunteers
shall be excess of the Consultant's insurance and shall not contribute
with it.
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to
the City, its officers, officials, employees or volunteers.
(4) The Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect to
the limits of the insurer's liability.
(5) Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail, return receipt requested,
has been given to the City.
e. Acceotabilitv of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self
insurance shall not be considered to comply with these insurance requirements.
1. Verification of Coveraae. Consultant shall furnish the City with original
endorsements effecting coverage required by this clause. The endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on
forms provided by the City. All endorsements are to be received and approved by the City before
work commences. As an alternative to the City's forms, the Consultant's insurer may provide
complete, certified copies of all required insurance policies, including endorsements effecting the
coverage required by these specifications.
11. 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.
12. 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.
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13. RELEASE OF INFORMATION.
a. All information gained by Consultant in performance of this Agreement shall
be considered confidential and shall not be released by Consultant without City's prior written
authorization. Consultant, its officers, employees, agents or subcontractors, shall not without written
authorization from the City Manager or unless requested by the City Attorney, voluntarily provide
declarations, letters of support, testimony at depositions, response to interrogatories or other
information concerning the work performed under this Agreement or relating to any project or
property located within the City. Response to a subpoena or court order shall not be considered
"voluntary" provided Consultant gives City notice of such court order or subpoena.
b. Consultant shall promptly notify City should Consultant, its officers,
employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of
deposition, request for documents, interrogatories, request for admissions or other discovery
request, court order or subpoena from any party regarding this Agreement and the work performed
thereunder or with respect to any project or property located within the City. City retains the right,
but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar
proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to
review any response to discovery requests provided by Consultant. However, City's right to review
any such response does not imply or mean the right by City to control, direct, or rewrite said
response.
14. 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, retum 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.
To City:
City of Temecula
Mailing Address:
P.O. Box 9033
Temecula, California 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Consultant:
Project Design Consultants
43460 Ridge Park Drive, Suite 170
Temecula, California 92590
Attention: Scott A. Hurst, Vice President
15. ASSIGNMENT. The Consultant shall not assign the performance of this
Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the
City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for
actual services performed up to, and including, the date of termination or as may be otherwise
agreed to in writing between the City Council and the Consultant.
16. 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.
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17. 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
judgement, shall be entitled to reasonable attorney fees and litigation expenses for the relief
granted.
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. PROHIBITED INTEREST. No member, officer, or employee of the City of
T emecula or of a local public body shall have any interest, direct or indirect, in the contract of the
proceeds thereof during his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their
knowledge that no board member, officer or employee of the City of Temecula has any interest,
whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of
the contracting party other than the City of Temecula, and that if any such interest comes to the
knowledge of either party at any time, a full and complete disclosure of all such information will be
made, in writing, to the other party or parties. even if such interest would not be considered a conflict
of interest under Article 4 (commencing with Section 1090) or Article 4.6 9commencing with Section
1220) of Division 4 of Title I of the Government Code of the State of California.
20. 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONSULTANT
Project Design Consultants
43460 Ridge Park Dr., Suite 170
Temecula, CA 92590
(909) 695-5596
Scott A. Hurst, Vice President
Bill Dick, Exec. Vice President
(Signatures of two corporate officers required for Corporations)
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EXHIBIT A
TASKS TO BE PERFORMED
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;.;";:_~ Request For Qualifications
.. :-_. Annual Agreement lor Engineering & Construction Survey Services
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Understanding Of Annual Agrelmlnt
ProjectDesign Consullants understands that this RFQ is for As-NeededlOn-Call survey services and as such,
understands response time and clear communication are paramount to a successful relationship. Our 6-year
relationship with Sempra Energy is an example of our ability to meet these demands and even exceed expectations.
We meet or exceed the insurance requirements requested and we are aware that the State Prevailing Wage rate is to
be paid to field personnel. It is also understood that travel time to and from the project site will not be charged and
there is no minimum amount of work required per request.
Project Approach
ProjectDesign Consultants' Temecula Survey Department is staffed with 3 office personnel and 2 field crews, as well
as 4 employees dedicated 10 aerial photogrammetry. During peak workloads survey crews andlor office personnel are
transferred up from the San Diego office to ensure project deadlines are met. Equipment on-hand includes electronic
total stations, data collectors GPS equipment and a high precision digital level. Task orders will be written by the
Project Manager for each assignment including scope of services, budget and agreed upon schedule.
The following provides a brief descriplion of the methods we propose to employ to accomplish the scope of work
requested:
· Record Research and Review - This task consists of reviewing preliminary title reports and accompanying
documents provided by Ihe City of Temecula or a nle Company. Research activities include but are not
limited to the following: research existing County and City survey data such as record maps, record of
surveys, monument ties, corner records, horizontal coordinale control stations, and benchmarks. PDC has
online accounts sel up and can order many of the Riverside County record maps without leaving the office.
· Locate Existing Monuments - This task includes searching in the field for property corner monuments,
street centerline monuments and centerline ties. The located monuments would then be used in conjunction
wnh a boundary survey, for orientation of a project to the local site, or for preparation of corner records
relating to monuments that are anticipated to be destroyed by construction.
· Perform Boundary and Control Surveys - This task includes searching in the field for all evidence of
boundary locations including but not limited to: property corner monuments, streel cenlerline monuments,
lines of occupation, and other physical evidence pertinent to retracemenl of boundary locations. Physical
evidence found in the field will be precisely located by GPS or electronic total station survey instrumentation
and all data will be recorded electronically in data collectors together with physical sketches and field notes if
deemed necessary. Control Surveys involve the establishment or location of survey monuments to be used
at a later date for either additional field surveying or aerial photogrammetry. Control and large boundary
surveys projects may require GPS survey methods for increased accuracy and efficiency. All boundary
surveys will meet or exceed AL T A/ACSM standards for positional accuracy of 0.07 feet plus 50 ppm.
· Prepare Legal Descriptions and Plat Maps for Right-of-Way Acquisition - This task includes
preparation of plats illustrating the location, extent and dimensions of proposed right-of-way acquisition
areas. Legal descriptions will be written and signed by a licensed Land Surveyor for use in the grant of
0PROJECTDESIGN CONSULTANTS
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.....~ Request for QualificatIOns
l';' :-. Annual Agreement lor Engineering & Construction Survey Services
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easement or condemnation. The legal descriptions will be crosschecked with the plat and traverse tapes to
ensure accuracy and quality.
.
Perform Aerial Mapping and Topographic Surveys - This task includes field surveying for conventional
topographic surveys to collect horizontal and vertical data on planemetric features and ground shots to map
the contour of the land to the accuracy of the proposed contour interval. Electronic total stations or GPS
equipment will be utilized to electronically gather the data for laler downloading to an office computer. This
information will then be utilized to generate the topographic map in either ACAD 14 or 2000 format. In cases
where aerial mapping is required, aerial panels will be set and located horizontally and vertically based on
published benchmark inlormation and rotated to either local property corners or State Plane Coordinates if
requested. Aerial photography will then be collected and later compiled on PDC's 1 " order IMA stereo
analytical plotter in Temecula, CA. The aerial mapping will be supplemented with a field check to verify
accuracy and completeness.
.
Establish and Verify Horizontal and Vertical Control - Horizontal survey control can be based on State
Plane Coordinates ff requested; otherwise coordinates will be based on a local system. Large surveys will be
performed utilizing LEICA system 500 GPS equipment for high accuracy. Vertical control can be established
from local published benchmarks by either PDC's High Precision Digilal Level capable of performing first
order leveling or a conventional level.
.
Locate Horizontally all Existing Facilities - This task includes the field location of existing plannemetric
features to within 0.1 feet, generally for design purposes or for as.built surveys. Facility locations will be
recorded wilh an electronic data collector and later downloaded and processed in the office. Field sketches
will be generaled to assist in the office drafting.
.
Perform Field Surveying for Project Design Purposes - This task includes a field survey to locate
existing terrain and plannemetric features for engineering design. Task may also include street cross.
sections and collection of invert elevations of existing sewer and storm drain facililies. Special attention will
be paid to areas where proposed design will match existing improvements.
.
Perform Construction Staking - This task includes the staking of street centerlines, limits of clearing and
grubbing and construction, slopes, saw cuts, edge of pavement, layout lines, drainage structures, curb &
gutter, etc. Cut-sheets will be prepared and delivered as needed to illustrate the staked elevations and
proposed cuVlill to finished grade.
Survey centerline/profiles will be pre-calculated and downloaded to hand held computers. Survey party
chiefs will calculate stake offset locations in the field from construction plan station & offsets. This approach
provides maximum flexibility and responsiveness to the contractor's requests. This approach also enables
experienced party chiefs to read the plans in the field and confirm the intent of the plans will be functional
and correctly staked and constructed,
0PROJECTDESIGN CONSULTANlS
8
EXHIBIT B
PAYMENT RATES AND SCHEDULE
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Cltv of Temecula
Request For QualllicatlOOS
Annual Agraement for Engineering & Construction Survey Services
PIC ...r lites
En.ClIvI Jill. II, !III nr'UUh Jill. II, !184
Principal
Project Manager
$135
$115
Crew/Mapping Manager
Surveyor
Survey/Map Technician
Clerical
2-Man Survey Crew (Conventional)
3-Man Survey Crew (Conventional)
1-Man Crew (GPS; 1 Receiver)
2-Man Crew (GPS; 2 Receivers)
3-Man Crew (GPS; 3 Receivers)
$85
$80
$65
$40
$160
$205
$120
$175
$220
Stereo Compiler & Stereo Plotter
Photogrammetry Manager
Mapping Editor
Task Order (Defined Scope)
$80
$80
$65
Lump Sum
Reimbursable charges for blueprinting, photographic mylar reproduction, photocopying, Iravei and mileage, delivery services, long-
distance telephone charges, computerized plolting, special graphic supplies, facsimiles, and other direct project charges incurred
on behalf of Client will be billed to Client at cost plus 10%,
Rates subject to change I'Iithout notice after June 3D, 2004
0PROJECTDESIGN CONSULTA.N'l'S
9
ITEM 14
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANC
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO: City Manager/City Council
FROM: trJ~ William G. Hughes, Director of Public Works/City Engineer
DATE: June 24, 2003
SUBJECT: French Valley Parkway/l-15 Overcrossing and Interchange Improvements,
Consultant Agreement, Project PW02-11
PREPARED BY:
Amer Attar, Principal Engineer
Scott Harvey, Associate Engineer
RECOMMENDATION:
That the City Council:
1. Approve an agreement with Value Management Strategies, Inc. in an amount not to
exceed $31,780.60 to provide the necessary Value Analysis Services needed for the
French Valley Parkway/l-15 Overcrossing and Interchange Improvements, Project No.
PW02-11 and authorize the Mayor to execute the agreement.
2. Authorize the City Manager to approve Change Orders not to exceed the contingency
amount of $3,178.06, which is equal to 10% of the agreement amount.
BACKGROUND: The constant backup of vehicles on 1-15 at Winchester Road has become
a primary concern for officials from the cities of Temecula and Murrieta, the County of Riverside,
and Caltrans. As a result, these agencies have been exploring ways to construct a future
interchange on Interstate 15 between Winchester Road and the 1-15/1-215 split. Caltrans has
completed the Project Study Report (PSR) for the construction of a future two-quadrant
cloverleaf interchange and freeway overcrossing north of Winchester Road. Identified as the
future "French Valley Parkway Interchange," the project will border the cities of Temecula and
Murrieta. Both cities have identified the Interchange as an important traffic improvement on the
Circulation Element of their respective General Plans, The project represents a multi-
jurisdictional surface transportation improvement that will service regional, interstate and local
transportation needs and will alleviate significant congestion problems on the 1-15 Freeway and
on adjacent roads in each city, as well as the unincorporated areas of Riverside County.
R:\AGENDA REPORTSI2003\062403\FrenchValley VA Consultant.doc
On January 14, 2003, City Council approved an agreement with Moffatt & Nichol Engineers to
provide the necessary design services needed to prepare a Project Report (PR) and
Environmental Documents (ED) for the French Valley Parkwayll-15 Overcrossing and
Interchange Improvements, Project No. PW02-11, and Plans, Specifications and Estimate
(PS&E) for the French Valley Parkway Interim Southbound Off-Ramp to Jefferson Avenue -
Phase I. One of the tasks that Moffatt & Nichol Engineers included in their proposal was to
provide technical information along with participating in a Value Analysis (VA) process.
Caltrans requires that a VA be preformed on all interchange projects early on the Project Report
phase of the project to insure that the best and most practical design be used. Ordinarily,
Caltrans takes the lead on facilitating the VA, including all associated costs. Recently, due in
part to the State's budget crisis, Caltrans is mandating that the VA be the responsibility of the
lead agency. Since the City of Temecula is the lead agency during this phase of the project, the
City will lead the VA effort. Callrans will participate in the VA by assembling their expert staff
and hold all VA sessions at their facilities.
Staff recently sent out request for proposals (RFP) for Value Analysis services to firms that
Caltrans recommended and received three proposals on May 12, 2003 from the following
consultants:
Firm Name
1. Value Management Strategies, Inc.
2. Edwards and Kelcey
3. Olympic Associates Company
Submittina Office Location
Escondido, California
Dallas, Texas
Seattle, Washington
Value Management Strategies, Inc. (VMS) was deemed to be the most qualified firm based on
our standard evaluation process. VMS is a Southern California based firm that specializes in
Value Analysis management for freeways, interchanges, and highways. They have completed
numerous Value Analysis processes for Caltrans projects similar to the French Valley Parkway/
1-15 Overcrossing and Interchange. The firm was highly recommended by Caltrans.
VMS will provide an independent Certified Value Specialist (CVS) team leader to lead a VA
study in accordance with Caltrans value methodology, facilitate VA team meeting (six full days),
and VA reports in accordance with Caltrans VA Report Guide for an amount not to exceed
$31,780.60.
FISCAL IMPACT: The City of Temecula has identified the French Valley/l-15 Overcrossing
and Interchange Improvements within its Capital Improvement Program for FY2003-2007.
Adequate funds are available in Account No. 210-165-726-5802 for the amount of $31,780.60
plus the contingency amount of $3,178.06 for a total cost of $34,958.66.
ATTACHMENTS:
1. Project Descriptions
2, Project Locations
3. Professional Services Agreement
R:\AGENDA REPORTS\2003\062403\FrenchValley VA Consultant.doc
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CITY OF TEMECULA
AGREEMENT
FOR CONSULTANT SERVICES
FRENCH VALLEY PARKWAY/I-15 OVERCROSSING AND INTERCHANGE IMPROVEMEMT,
PROJECT PW02-11
THIS AGREEMENT, is made and effective as of June 24,2003, between the City of
Temecula, a municipal corporation ("City") and Value Managernent Strategies, Inc., ("Consultanf').
In consideration of the mutual covenants and conditions set forth herein, the parties agree as
follows:
1. TERM. This Agreement shall commence on June 24, 2003, and shall remain
and continue in effect until tasks described herein are completed, but in no event later than June 24,
2004, unless sooner terminated pursuant to the provisions of this Agreement.
2. SERVICES. Consultant shall perform the services and tasks described and
set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant
shall complete the tasks according to the schedule of performance which is also set forth in Exhibit
A.
3. PERFORMANCE. Consultant shall at all 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. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the
Labor Code of the State of California, the City Council has obtained the general prevailing rate of
per diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of workman needed to execute this Contractor from the Director of the
Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be
obtained at cost at the City Clerk's office ofTemecula. Consultant shall provide a copy of prevailing
wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as a
minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code,
Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion
thereof, for each laborer, worker, or mechanic employed, paid less than the stipulated prevailing
rates for any work done under this contract, by him or by any subcontractor under him, in violation of
the provisions of the Contract.
5. 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 Thirty-one thousand seven
hundred and eighty Dollars and sixty Cents ($31,780.60) for the total term of the Agreement
unless additional payment is approved as provided in this Agreement.
r:lciplprojeclslpW02-11Iconsull doelYalue Mgml Stral agrml
b. Consultant shall not be compensated for any services rendered in connection
with its performance of this Agreement which are in addition to those set forth herein, unless such
additional services are authorized in advance and in writing by the City Manager. Consultant shall
be compensated for any additional services in the amounts and in the manner as agreed to by City
Manager and Consultant at the time City's written authorization is given to Consultant for the
performance of said services.
The City Manager may approve additional work up to ten percent (10%) of the amount of the
Agreement or $25,000.00, but in no event shall the total sum of the agreement (basic agreement
amount and contingency amount) exceed twenty -five thousand dollars ($25,000.00). Any additional
work in excess of this amount shall be approved by the City Council.
c. Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted 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 nondisputed fees. If the City disputes any of consultant's fees it shall give written
notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the
invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or
terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10)
days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all
work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates
a portion of this Agreement such suspension or termination shall not make void or invalidate the
remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City
shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4.
7. 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 thatthe Consultant is in default
in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant
with written notice of the default. The Consultant shall have (10) days after service upon it of said
notice in which to cure the default by rendering a satisfactory performance. In the event that the
Consultant fails to cure its default within such period of time, the City shall have the right,
notwithstanding any other provision of this Agreement, to terminate this Agreement without further
notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under
this Agreement.
2
r:lciplprojeclslpW02.11Iconsult doelYalue Mgmt Slrat agrmt
8. 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 identi-
fied 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.
c. With respect to the design of public improvements, the Consultant shall not
be liable for any injuries or property damage resulting from the reuse of the design at a location
other than that specified in Exhibit A without the written consent of the Consultant.
9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect
and hold harmless the City, its officers, officials, employees and volunteers from and against any
and all claims, demands, losses, defense costs or expenses, including attorney fees and expert
witness fees, or liability of any kind or nature which the City, its officers, agents and employees may
sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to
property arising out of Consultant's negligent or wrongful acts or omissions 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.
10. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for
the duration of the contract insurance against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work hereunder by the
Consultant, its agents, representatives, or employees.
a. Minimum Scope of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability form
No. CG 00 01 11 85 or 88.
(2) Insurance Services Office Business Auto Coverage form CA 00 01
06 92 covering Automobile Liability, code 1 (any auto). If the
Consultant owns no automobiles, a non-owned auto endorsement to
the General Liability policy described above is acceptable.
(3) Worker's Compensation insurance as required by the State of
California and Employer's Liability Insurance. If the Consultant has no
employees while performing under this Agreement, worker's
3
r.\cip\projects\pw02-11\consull doclValue Moml Stral aorml
compensation insurance is not required, but Consultant shall execute
a declaration that it has no employees.
b. Minimum Limits of Insurance. Consultant shall maintain limits no less than:
(1) General Liability: One Million 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 Califomia;
Employer's Liability: One million dollars ($1,000,000) per accident for
bodily injury or disease.
c. Oeductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City Manager. At the option of the City
Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and defense
expenses.
d. Other Insurance Provisions. The general liability and automobile liability
policies are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the Consultant; products and completed
operations of the Consultant; premises owned, occupied or used by
the Consultant; or automobiles owned, leased, hired or borrowed by
the Consultant. The coverage shall contain no special limitations on
the scope of protection afforded to the City, its officers, officials,
employees or volunteers.
(2) For any claims related to this project, the Consultant's insurance
coverage shall be primary insurance as respects the City, its officers,
officials, employees and volunteers. Any insurance or self-insured
maintained by the City, its officers, officials, employees or volunteers
shall be excess of the Consultant's insurance and shall not contribute
with it.
(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to
the City, its officers, officials, employees or volunteers.
(4) The Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect to
the limits of the insurer's liability.
4
r:\cip\projects\pw02-11\consull docWalue Mgml Stral agnnl
(5) Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail, return receipt requested,
has been given to the City.
e. Acceotabilitv of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self
insurance shall not be considered to comply with these insurance requirements.
f. Verification of Coveraae. Consultant shall furnish the City with original
endorsements effecting coverage required by this clause. The endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on
forms provided by the City. All endorsements are to be received and approved by the City before
work commences. As an alternative to the City's forms, the Consultant's insurer may provide
complete, certified copies of all required insurance policies, including endorsements effecting the
coverage required by these specifications.
11. 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.
12. 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.
5
r:lcip\prejects\pW02-11\consull deelValue Mgmt Strat agrmt
13. 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 Attomey, 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.
14. 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.
To City:
City of T emecula
Mailing Address:
P.O. Box 9033
Temecula, California 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Consultant:
Name:
Address:
City:
Attention:
Value Management Strategies, Inc.
PO Box 3316
Escondido, CA 92033
Mr. Terry Hays
15. ASSIGNMENT. The Consultant shall not assign the performance of this
Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the
City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for
actual services performed up to, and including, the date of termination or as may be otherwise
agreed to in writing between the City Council and the Consultant.
6
r:\ciplprojectslpw02-11\consult deeIYalue Mgml Stral agrml
16. 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.
17. 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 conceming
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.
18. PROHIBITED INTEREST. No officer, or employee of the City ofTemecula
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 T emecula has any interest, whether contractual, non-contractual, financial or otherwise,
in this transaction, or in the business of the Contractor or Contractor's sub-contractors on this
project. Contractor further agrees to notify the City in the event any such interest is discovered
whether or not such interest is prohibited by law or this Agreement.
19. 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.
20. 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.
7
r:lciplprojectslpW02-11Iconsult doclValue Mgmt Strat agrmt
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONSULTANT
Value Management Strategies, Inc.
PO Box 3316
Escondido, CA 92033
(760) 741-1155
Terry Hays, CVS, President
Print or Type Name and Title
(Signatures of two corporate officers required for Corporations)
8
r:\cip\oroiects\oW02-11 \ronsult docWalue Momt Strat aonnt
EXHIBIT A
TASKS TO BE PERFORMED
9
r:\cip\oroiects\ow02-11\consull doclValue Moml Stral aorml
(
May 7, 2003
Mr. Scott Harvey, P.E.
Associate Engineer - Capital Projects
43200 Business Park Drive
Temecula, CA 92590
VM~
Value Management Strategies, Inc.
Dear Mr. Harvey,
Value Management Strategies, Inc. (VMS) is please to submit our qualifications for Value Analysis
Facilitation Services for the French Valley / 1-15 Overcrossing and Interchange Improvements.
VMS specializes in the leadership of VE and Constructibility Review studies. Our Corporate
Headquarters is in Escondido, CA. We also maintain offices in Oceanside, CA, Oakland, CA,
Portland, OR and Grand Junction, CO. VMS has seven CVS team leaders.
VMS will plan, coordinate, manage, lead, and document the VA study per the latest CaltIans VA
Study requirements. Please note that VMS just completed writing the CaltIans VA Team Guide and
Report Guide, Third Edition, April 2003. These new guides detail the latest VA study process and
documentation, which will help to ensure a successful VA Study.
We have reviewed the City's Standard Professional Services agreement and will be willing to
execute it with one exception. The requirement for Professional Liability Insurance - Errors and
Omission is not appropriate for this contract for the following reasons:
I. This is not generally required for VA services as there are no design services being performed.
2. VMS will be facilitating the study; the technical team members will come f'rQm project
stakeholders and not contracted through VMS.
We are confident that our qualifications and experience on highway projects and withCaltrans will
provide the City ofTemecula and other project stakeholders with the highest level of service. We
look forward to the opportunity to work with you.
laSin~IY'
.' . a ,CV
P=m<- Ls_~
I
(
PO Box 3316
Escondido,California 92033
T: 760 7411155 F: 760 489 6765
2080 Mountain Blvd, Suite 203
Oakland, Caiifornia 94611
T: 510 3381160 F: 510 3381162
3915 Mission Avenue, #7-610
Oceanside, (A 92054
T: 760 721 3012 F: 619839 377S
mZl NW Forest Spring lane
Portland, Oregon 97n9
T: SOlS31 8864 F: 503531 9784
1874 Deer ParkCi"l. South
Grand Junction, Colorad, 81503
T: 9702425531 F: 9702425531
VMS OVERVIEW
Value Management Strategies, Inc. specializes in
the application of value engineering (VB) and
value analysis (y A) at the early design phase, and
uses the methodology to develop the program
concept, business plans, processes and
procedures, as well as to facilitate traditional
V AfVE studies. In addition to planning,
oreani7.ing, and conducting traditional value
studies, VMS conducts Partnering for Design
(PfD) studies, Constructibility Reviews, Focus
Panels, and V AfVE training (SA VB-approved
Module I and Module ll).
Our role in Value studies is to provide the team
leader, a Certified Value Specialist, to plan,
coordinate, conduct, manage, and document the
studies. For each study we select team members
with expertise relevant to the project These
individuals may come from the local consulting
community, or they may be technical experts
desired by the customer and/or customer
representatives. The right team for the study
results in a higher rate of success for the V AfVE
effort.
Value Management Strategies, Inc. (VMS) is
headquartered in Escondido, CA, and maintains
offices in Oceanside, CA, Oakland, CA, Portland,
OR, and Grand Junction, CO.
In addition to lelltling traditional value studies,
we specialize in the early application of V ANE
techniques to develop program scope and concept
development with the project stakeholders
(owner, user, resource agencies, design team,
etc.) to ensure the customer receives the right
project for the right cost VMS has four CVSs on
staff plus three Associates that are used to help
level the workload of our primary team leaders.
All CVSs are skilled and experienced in applying
the VB techniques to a wide range of projects.
Value Management Strategies, Inc. has
conducted over 400 VB or PtD studies and offers
experienced Value Leaders/tip to ensure that
your project meets your value objectives.
Following is a preview of our Certified Value
Specialists and their qualifications.
KEY STAFF MEMBERS
Four this contract we would propose, Teny Hays,
President as Program Manager and Virginia
(Ginger) Adams, CVS as the team leader.
VMS President Terry Hays, CVS, has more than
35 years experience in management, engineering,
design, and value management for a variety of
applications. He is a recognized leader in
applying the value process to the development of
program concepts and planning strategies. Teny
is experienced in conducting customer/userfocus
panels to identify and understand critical process
issues, and integrating these techniques with the
value process into Strategic Business Planning,
Organizational Process Studies, Partnering
Sessions, and Concept Development
Under Teny's managementofCaltrans contracts
(4) VMS has managed 4 consecutive state-wide
VB contracts with Caltrans. VMS has managed
over 350 task orders on constroction projects (VB
Studies and Constructibility Reviews), highway
related procedural studies and VA training
workshops. Construction projects have included
studies at every phase of the project delivery
process from developing concepts to post
construction award. Projects have included
seismic upgrades, interchanges, operational
improvement projects, projects that include light
rail and heavy rail issues and considerations, and
capacity improvements.
2 of]2
Procedural studies include Caltrans District
Strategic Plans, studies to improve the Caltrans
Project Delivery Process, procedural
improvements and development of the Caltrans
VB Program Team and Report Guides. Since
1996 VB Studies conducted by VMS Team
Leaders has resulted in over $750,000,000 in
implemented savings with an additional
$250,000,000 in Conditionally Accepted savings
awaiting final approval.
Ginger Adams, CVS, F-SA VE, Executive Vice
President of VMS, has more than 30 years
experience in business m'lnllgement and
administration, including 23 years in value
engineering. Ms. Adams has managed and/or
facilitated more than 100 value studies on a wide
variety of projects and manllgement processes.
Her outstanding skill with people has led to
specific requests from clients for her to facilitate
various meetings in addition to VANE studies.
She received Certificates of Recognition from the
Federal Highway Administration for her
facilitation of VB studies named "Most
Outstanding Study" for the California
Department of Transportation in 1994, 1998 and
2000. Ms. Adams was the first consultant to ever
receive this award. A past President of SA VB
International, Ms. Adams was elevated to the
status of Fellow of SA VB in 1999.
Rob Stewart, CVS, mllnllges VMS' operations in
the Pacific Northwest He has been an instructor
in many SAVE-approved Module I VB Training
Workshops sponsored by a variety of highway
and transportation agencies, educational
institutions, government agencies, and private
companies. In addition, he is an Adjunct
Professor teaching Value Engineering at Portland
State University. Mr. Stewart has participated in
more than 100 VB studies, as both facilitator and
project manager, for a wide range of projects. He
received Certificates of Recognition from the
Federal Highway Administration for his
facilitation of VB studies named "Most
Outstanding Study" for the California
Department of Transportation in 200 1 for the
District 8 I-IS Operational Improvement through
downtown San Bernardino. Mr. Stewart also
developed the Caltrans Perfonnance Measures
process and facilitated VB and Constructibility
Studies on major Caltrans projects including the
I-IS Managed Lanes in San Diego, San
Francisco-Oalkand Bay Bridge replacement, and
the 1-405/SRIOI Interchange Improvements in
Los Angeles. He is the current President of the
Portland Chapter of SA VB International. Rob
would be available as team leader if for some
reason Ginger was unavailable when the study is
scheduled.
All individuals proposed are employees of VMS,
th~willbeooo~~co~~.Res~es
for the VMS Staff presented h~ are attached at
the end of the proposal.
CAPABILITY OF CONSULTANT
VMS is experienced le8tfing VB studies as
described in the RFQ. We currently manllge as
needed contracts with California Department of
Transportation, City of San Diego, City of New
York and COE - Alaska. In addition we
regularly work on highway projects local
agencies suchas Washington County, OR, Valley
Highway Associates, San Jose, CA, Washington
DOT, and Oregon Department ofTransportation.
Key capabilities that the VMS Team offers the
City ofTemecula for this project include:
}> Thorough knowledge of the Caltrans VA
process as indicated below.
>- Experienced working with VA Teams
comprised of stakeholders Caltrans staff and
design consultants.
}> A proven track record of producing results.
In addition to the cost savings, VMS lead VB
studies for transportation agencies have played a
significant role in resolving issues with
stakeholders, reducing construction time,
improving operations, and reducing life cycle
cost for both the user of the system and the
operator.
30f32
VMS has played a key role in improving the
Caltrans VE Program by:
~ Coordinated the rewriting of Caltrans VA
Policy
~ Developed the Caltrans Team and Report
Guides, which detail the integration of the
VE Process into the Caltrans Project Delivery
Process
>- Developed the Caltrans VE Concept
Manual for use in VE Training Workshops
>- Initiated the use of Highway User Life Cycle
CostlBenefit analysis in VE studies. This
has resulted in major program changes being
made as a result of the VE studies and over
$800 million in highway user cost savings
being implemented
> Developed and Implemented Performance
Measure Process into the Caltrans VE
Process
> Involved top management in VE studies on
District Business Plans and Strategic Traffic
Operations Plans. This directinvolvement by
top management as team members in VE
studies has infused new support for the VE
program.
KEY VMS ACTIONS
The VMS approach to VE studies differs from
most VE consultants and we consider the
following elements of our approach essential in
delivering high quality VE results.
>- Apply Project mllnagement techniques to the
man'lgement ofVE studies.
);> Pre-study meeting to understand the critical
project issues.
);> Developing perfonnance measures with key
project stakeholders to develop
recommendations thatnot onlyreduce project
cost but result in a project that better achieves
its Purpose and Need.
>- Developing a FAST Diagram on the project
to validate its Purpose and Need and better
understand the cost elements that do not
support the P&N. This also helps to increase
the number of viable VE recommendations.
,. A thorough evaluation process where each
idea is evaluated against the Perfonnance
Measures and each recommendation is rated
against the original design.
>- A high quality VE report with viable
solutions and value improvements to the
project are presented and not cost cutting
recommendations that reduce project scope
or reduce standards.
>- Including project stakeholders in the study to
help resolve issues and achieves consensus
for the project.
>- Customize the timeframe to the needs of the
project.
PROJECT UNDERSTANDING
VMS is familiar with this project as we were part
of both the Willdan and Dokken teams that were
interviewed forthe design. As such we Were part
of team meetings that reviewed the original PSR
and other project documents and identified
possible project issues and strategies that could
be used to address these issues. We recognize
that key issues include:
>- Importance to the City of Temecula for the
operational improvements this interchange
will provide the City.
);> Proposed interchange spacing with
Wmchester Ave is less than current Caltrans
standards.
>- Proximity of new interchange with the merge
of 1-15 and 1-215 and the challenge to get
FHW A approval for this variance.
);> Operational issues on 1-15 due to the weave
conditions
In addition, our proposed team leader, Ginger
Adams, is familiar with the Temecula area as she
facilitated a VA Study of the
1-15/SR79 South Interchange
40f32
APPROACH TO THE PROJECT
This section identifies the VMS approach to
Highwayrrransportation projects. Key steps
regarding how VMS team leaders meet the
projects' goals and objectives, and maximize the
study results.
Scope
Value Management Strategies, Inc. (VMS) will
plan, coordinate, manage, lead, and document the
VE study.
VMS will schedule the VE study to meet the
timing requirements of the City of Temecula A
detailed work plan will be developed and the
necessary resources are committed for the study.
The VE study will be conducted in accordance
with the most recent standards as defined in the
Caltrans Team and Report Guide - Third Edition,
April 2003. The VA Study team leader will be a
Certified Value Specialist (CVS) with extensive
knowledge of the Caltrans process and highway
projects.
The VE process is described under the VE Study
Format hearling. The VA Study will be
scheduled in accordance with the Caltrans 6-day
study due to the size and complexity of the
project.
Following the VE study, VMS will assemble the
information into a draft VE Report. This will be
furnished to the City of Temecula and other
project stakeholders two weeks after the
completion of the study.
After the City of Temecula has had an
opportunity to review the contents of the report,
the VMS team leader will meet with the City of
Temecula, Caltrans, other project stakeholders
and the designer to resolve the disposition of the
VE recommendations and issue a Final VE
report. The final report will be delivered one
week after the implementation meetings.
STUDY TEAM
Value Management Strategies, Inc. will provide
the CVS team leader to organize and conduct the
VE Studies. It is our understanding that the
technical team will be comprised of staff from
the City ofTemecula, City ofMunieta, Caltrans
and the Moffatt and Nichols design team.
STUDY FORMAT
The VE study will follow the standard Caltrans
VE Job P1an.
Pre-Study
In preparation for the VE study the CVS team
leader will plan the study details with the City
representative. The team leader and team
members will review the project information to
gain an understanding of the current program, its
critical issues, objectives and concerns. In
addition, the team leader will develop a cost
model for the project prior to the start of the
study. If the project is to improve traffic
operations, information for the Highway User
Life Cycle Benefit Model will be gathered and a
model developed. This allows the traffic impact
ofVE recommendations to be measured later in
the study.
VE Study
The VE Job Plan guides the VE team in their
search to improve the project. It includes eight
phases:
Information Phase
At the beginning of the VE study, the
background and decisions that have influenced
the development of the program are reviewed and.
understood. The VE study starts with a meeting
with representatives of the program and other
stakeholders. Following this the VE team visits
the project site. This enhances the VE team's
knowledge and understanding of the projects and
the operational requirements.
50[32
During this initial meeting, the team develops the
Performance Measures with the stakeholders and
determines how the current design satisfies these
factors. This provides the team with insight as to
the current strength and weaknesses of the design
and a baseline from which to measure the
recommendations that are developed during the
VB Study.
Function Analysis Phase
Functional requirements in a program are key to
assuring an owner that the project has been
designed to meet the stated criteria This analysis
is a primaIy element in a VB study. It is used to
reduce program cost without removing necessary
items. A FAST diagram is developed to help the
team better understand the ftmctional
relationships of the program. Cost and project
issues are related to the project ftmctions on the
F.A.8.T. diagram to direct the team to the
ftmctions where they should focus their efforts.
Creative Phase
The VB team lists as many ideas as possible of
alternative ways to provide the nec~sary
ftmctions within the project. Judgment of the
ideas is restricted at this point
Evaluative Phase
The VB team, as a group, evaluates each idea
with respect to the requirements of the project.
The Creative Idea Evaluation form is used to
record the idea, rate how the idea relates to the
Performance Measures for the project, and the
advantages and disadvantages of that idea for this
particular program. Once each idea is fully
evaluated, the idea is given a ranking number.
This is based on a scale of I to 5 to prioritize the
development of the ideas.
Development Phase
Each idea rated 4 or 5 is expanded into a
workable solution and documented on the VB
Alternative forms. Ideas rated a 3 may be
written-up as time permits. Alternatives consist
of the recommended concept, cost comparisons
(initial and LCe), a descriptive evaluation of the
advantages and disadvantages o~ ~e
recommendation. Each recommendation IS
documented with a brief narrative to compare the
original design to the proposed change. Sketches
and design calculations, where necessary, also
are prepared in this part of the study.
Presentation Phase
The VB study concludes with an informal oral
presentation of recommendations to the program
team and stakeholders. This provides an
opportunity to previewthe proposals and develop
an understanding of the rationale behind them.
Report Phase
The team leader compiles the information
developed during the VB study into the draft
Value Engineering Study Report. This report
includes an Executive Summary, VA
Alternatives, Project Analysis, Project
Description, Idea Evaluation and VB Process.
Implementation Phase
An implementation meeting helps to ensure that
savings or program improvements are not lost
due to a lack of communication. Once decisions
are made VMS can complete the final report with
the disposition of each recommendation clearly
discussed.
60/32
A TT ACHMENTS
Attachment A - Project Scope of Work: This document follows the scope of work as
required for Caltrans V A Studies. Actions detailed are consistent with the Caltrans VA
Program requirements and satisfies the FHW A VA requirement.
Attachment B - Task Analysis and Schedule: This document details the task, person
responsible, and budgeted time. A schedule bas been established assuming a July I start
date. This schedule follows the typical model for Caltrans V A studies. The schedule can be
adjusted or accelerated based on specific needs of the City of Temecula. Note the hours
indicated also represent the typical time budgeted for Caltrans studies. Actual time will be
invoiced. There is typically a 10"10 safety factor in these hours.
Attachment C - Resumes: Resumes are included for Terry Hays, Project Manager, Ginger
Adams, Team Leader, and Robert Stewart, Alternate Team Leader.
Attachment D - Recent, Relevant Work: List of recent Caltrans highway work performed
by VMS team leaders is included We have not shown highway projects for other state
DOTs, Regional Transportation Agencies, or Cities. These can be made available if desired.
References for these projects are also included.
Attachment E - Current Billing Schedule: Current Caltrans billing rates are provided for
VMS staff. Note our Caltrans rate is slightly less that our actual rate, but due to the nature of
the project and the fact that Caltrans is a stakeholder in the project, we will honor our lower
rate for this project.
Attachment F - Budget: Based on the budgeted hours, schedule, and billing rates, a cost
budget for this project is included.
70132
Attachment A - Project Scope of Work
80132
TASK ORDER - SCOPE OF SERVICES
June 152003
Value Management Strategies, Ine.
I. Project Description
The Contractor shall assist with preparing and distributing a Value Analysis 01 A) study of the
project described below:
City of Temeeula
French Valley Parkway at 1-15 Interehange
n. Team Authority and Coordination:
VA Study to comply with NUS VE mandate and follow the Caltrans VA methodology as
outlined in the Chapter 19, "Value Analysis" of the Projeet Development Procedures
Manual (pDPM) and detailed in the Caltrans VA Team Guide and Report Guide - Third
Editions, April 2003. VA studies identify and evaluate alternative project solutions and
provide recommendations to deeision-makers.
Study Coordination:
Amer Attar, City ofTemeeula, Principal Engineer (909) 694-6411
Renetta Cloud, 0-8 VA Coordinator, (909) 383-6712
m. Study Participants and Schedule
The VA Study is to followthe actiVities as defined in the Caltrans V A Activity Chart. The City of
TemecuIaand Caltrans will develop the list of V A Study participants. The study will be six days,
VA Study Segment 1 will be three days one week and VA Study Segment 2 will be three days the
following week. A prestudy meeting will be schedules at least two weeks in advance of Segment
1 to finalize the plans for the VA Study. Once the City and other project stakeholders have
reviewed the Draft report, an implementation meetingwill be conducted to resolve the disposition
of the VA Alternatives presented in the report.
IV. Period of Performance
The State's Contract Manager shall provide the Contractor with written approval prior to
commencement of any work.
Work under this Task Order shall beginon_-, _ or upon final approval of this Task Order
by Caltrans and shall terminate at the end of the Contract. Pre-study, data collection and
dissemination shall begin on _ -1 _'
90[32
V. Scope of Services
The required services are to lead a V A study of the above-described project. The scope of the
work shall include but is not limited to the following:
. Provide a qualified, independent Certified Value Specialist (CVS) team leader to lead a
VA study in accordance with Caltrans value methodology.
. Provide VA study documentation in accordance with the Caltrans VA Report Guide and
this task order.
. Provide the following technical team members for the following disciplines:
}> None to be provided by VMS.
· Consult with Project Manager and VA Coordinator on the availability of Caltrans
conference rooms.
. Ensure that applicable data and correspondence, any other relevant information necessary
for the VA study is collected, developed and distributed.
. Facilitate VA Team Meetings.
· Provide the team with access to easels, marking pens, straightedges, FAX, telephone,
copier, and pertinent background information on the selected topics not provided by
Caltrans' District Office.
· Provide VA reports in accordance with Caltrans VA Report Guide - Third Edition.
VI. VA Deliverables
The VA Team Leaders are responsible for the following:
· Leading pre-study meeting/so Attendance should include City staff, the Caltrans DV AC,
project manager and key project development team staR: key outside project stakeholders
(local transportation agencies, local government, and permitting agencies) and any known
VA team members.
· Updating the draft VA study charter (Attachments A, B and C per the Caltrans Team
Guide.
· Complete the Preliminary VA Report with input/review of V A Team and technical
reviewers in accordance with the VA Report Guide - Third Edition and with the following
items:
}> A distribution list for the V A reports must be developed with the City, District VA
Coordinator and the Project Manager.
}> Submit Preliminary VA Report; no more than 2-weeks following Initial VA
Presentation, as specified in the report distribution list.
}> The preliminary report should include hardcopy distribution and the electronic files of
the VA Study Summary Report, Executive Summary to DV AC and HQ VA Branch.
Copies of the reports should be distributed to the VA team, key technical reviewers
and the project stakeholders (both Caltrans and outside agencies).
10 if32
· Coordinate with the City, DV AC on the project stakeholders responses to the preliminaIy
VA report and prepare for an implementation meeting to resolve the disposition of the VA
alternatives, finalize the VA study reportables (costs, performance and value indices).
· Submit Final VA Report as specified in CaItrans V A Report Guide - Third Edition.
Report should be submitted no more than 3 weeks following VA Final Presentation. Final
V A report should also include an electronic copy in PDF format of the entire report and a
separate file in excel format of the VA study summary report.
· Submit electronic copies of the updated V A study summary reports and updated Executive
Summary as needed to document the resolution of conditionally approved alternatives as
specified in the Final VA Report to the DV AC and the HQ VA Branch.
vn. Reports and/or Meetings
The Contractor shall submit progress reports, and meet with the City, as needed. to discuss
progress on the study.
The Contractor shall schedule and facilitate an implementation meeting at a date and time to
be deteImined by the City, the District VA Coordinator (DV AC), the Project Manager and the
Contractor.
II 0132
Caltrans Value Analysis Activity Chart
INITIATE SlUDY ORGANIZE STUDY PREPARE DATA
Z > Identify study project > Conduct Pre-Study > COIlecl and dIstribule
0 > Identify study roles and Meeting data
~ responslblIltie > SeIecl team membenl > Develop c:onstructlon
> Define study goals > Identify _holders, cost~
> SeIecl team leader declsiolHnakers, and > Develop highway user
~ > Prepare draft Study 1ec:hnical reviewers benefit/life cycle cost
Charter > Identify data c:ollaclion (lCC) model
W > SeIecl study dales
IX: > Delennine study logistics
a. > Update VA Study Charter
1 2 S
15
;:)
?-
m
~
I-
IX:
o
a.
w
IX:
....
-
C
CD
E
l:II
CD
m
INFORM TEAM ANALVZE FUNCTIONS CREATE IDEAS EVAlUATE IDEAS
> Review study activitias > Analyze project data > Focus on functions > Apply key
and confilm reviewers > Elcpand project > LIst aU Ideas perfonnance criteria
> Pressnt design concept func:lions > Apply aeatIviIy and > Rata Idea 10 key
> Pressnt~. > PrepaJe FAST diagram innovation lec:hnlques perfonnance criteria
Interests > Delennlne functional (group and indivIduaQ > LIst advan1ages and
> Review project issuas cost drive<s disadvan1ages
and objectives > COnsider cost
> Identify key func:lions and inpads
perfonnanc:e aiterla > Prioritize Ideas (1-5)
> V1sK projectlile > Assign a_
for development
4 5 6 7
--------------
DEVELOP ALTERNAllVES CRI11QUE AL TERNAllVES PRESENT AL TERNAllVES* 1
> Develop altemative > VA AIlematives > Present findings 1
concepts Technical Review > Document feedback 1
> Prepare sketches and > VA AIlematives Team > COnfirm pending reviews 1
calculalions Consensus Review > Prepare prerunlnary 1
> Measwe perfonnanc:e > Assign alternative report 1
> ~ cosla. LCC numbelS so that
benefilsIcosla mutuaUy exclusive *- prueIfiaJion of study I
aflematives ere apparent fint/brg> 1
> Identify VA se1s 101
I Validate nce 9 ----------..
ASSESS ALTERNAllVES" RESOLVE ALTERNAllVES I PRESENT RESULTS* I
> Review Preliminary > Review inpIementation I> Pressnt results 1
Report dispositions I > Obtaln~ I
> Assess a_ for > Resolve Implementation I approval on 1
project acceptance actions with decision- 1 inplemented aflematives
> Prepare draft makers and s1akehoIders I > Summarize performance. I
ImpIemen1ation > Ed'd allematives I cost, and value (
dispositions > RevIsit rejected I inprovements
"AclMties performed by allematives, if needed I I
PDT, Tachnical I *Fina/ presmtation oj study I
I resulb I
Relliewers, end I
StBkehoIders 12 1 131
11 i__________J
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l:II
CD
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PUBLISH RESULTS I cic;;-o~';;-m;;;-l
> Document process and (If Condi6ona/1y Accep!ecl
study results AltMIaJNes exist) 1
> Incorporate aU comments > Resolve COnditionally I
and implementation Aocepted Alternatives 1
actions > FllUllizeVAStudy 1
> Distribute Fmal VA Summary Report 1
Report (VASSR) 1
> Distribute electronic > Finalize Perfonnanc:e I
report to HQ VA Branch Measures
> Update VA Study > FmarlZ8 VA Report 1
Summary Report (VASSR~ Executive Summary and I
> Provide HQ the Final VA I provide electronicaUy I
Reportinpdffonnat 141_.!2!ia..____..:!!,J
r-------------------------
I Note: The dashed boxes indicate steps that :
: may not be required in some VA I
-------------------------~
12 of32
EXHIBIT B
PAYMENT RATES AND SCHEDULE
10
r:\cip\projects\pW02-11Iconsult doelValue Mgmt Strat agnnt
Attachment B - Task Analysis and Schedule
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Attachment C - Resumes
160f3O
Qualifications
Education
Registration
Employment Record
Value Management Strategies, tne.
R. Terry Hays, CVS-Ufe, President
Terry Hays is a mechanical engineer with 30 years of experience in
engineering, design and value management for a variety of applications.
He has extensive experience in leading value engineering training
seminars and worllshops for govemment, municipal and industrial clients
and has participated in many detailed value engineering studies of
technical facilities and processes. Mr. Hays' engineering assignments
have included the design and development of components for the
automobile industry, directing value engineering studies which focus on
future products and development, structural analysis of new vehicles, and
concept development for new products.
Mr. Hays has conducted over 350 VE studies on a wide range of
Construction projects. He has served as project manager and principal
team leader for indefinite quantity VE contracts with Califomia
Department of Transportation, Southwest and Pacific Divisions-Naval
Facilities Engineering Command, New YorK City-Office of Management
& Budget, and Corps of Engineers-Sacramento District.
Mr. Hays has been a leader in applying the Value Engineering process to
the development of program concepts (FACD) and planning strategies.
Terry is experienced in conducting customer/user focus panels to identify
and understand critical project issues. Results of the focus panel are
directly used during the VE study. Terry has integrated focus panel and
VE techniques into the Partnering Sessions, Concept Development and
Planning Studies he conducts.
Mr. Hays wrote the chapter on value engineering for Maynard's Industrial
Engineering Handbook - fourth edition, published by McGraw-Hili, Inc.,
1992, and he has published several papers on Value Engineering and
written training manuals on value engineering that covers construction
projects, product designs, manufacturing processes, and administrative
systems and procedures.
B.S., Mechanical Engineering,
Lawrence Institute ofTechnology, Southfield, Michigan
Certified Value Specialist, Life - No. 870202
SAVE Intemational
Value Management Strategies, Inc.
Lewis & Zimmennan Associates, Inc.
Value Analysis, Inc.
Hoover Universal
General Motors Corporation
(1995-Present) President
(1992-1994), Vice President
(1984-1991), Vice President
(1983-1984), Engineering Manager
(1965-1982), Engineering Staff
VANE Project Studies
RECENT HIGHWAY AND TRANSIT PROJECTS
California Department of
Transportation
City of New Yo'"
1"--
VMSt'
· North 1-15 Conidor Managed lanes Project, San Diego
· San Francisco-Oakland East Bay Bridge Replacement
· 1-5 Widening at Magic Mountain Parkway
. SR67 Interchange at Riverford Road
· 1-15 Noise Abatement
· SR 67IBradley Interchange, San Diego County
· SR 98 Corridor Development
. SR67 Interim Project Development
. SR 99/Dana Drive
· SR 55 HOV lanes and Three Overcrossings
· SR101 -Safety Improvements - Mussel Shoals to la Conchita
· 1-5 North HOV Lane
. SR 71 - Pico Avenue Interchange
· Harbor Drive - Pier 7 Interchange
. Passing lanes on State Route 94 East of Jamul
. SR 70 - Bridge RehabilitationlRetroflt
· SR 138 Road Widening East of 1-15
· Century Freeway Storm Drain Repair, Phases I and II
· SR 3 Rush Creek Bridge Replacement
· SR 299 Road Realignment at Pit #1 Grade
· Route 4 Gap Closure - Road Widening
· Alameda Street, Phase 3
· 1-405 HOV lanes - From SR 105 to SR 90
· SR 76 Road Widening
. SR 125 Design Build Oversight
. 1-15 Soundwalls
· Southem Califomia Traffic Operations Strategic Plan
· lake Britton Bridge Replacement, Redding
· SR 70 Road Replacement in Quincy
· SR 56/1-5 Traffic Interface
· 1-8011-505 Weave Correction
· Cherokee RoadIRoute 99 Interchange
· SR 99 Widening at Watertoo Interchange
· SR 165 Merced River Bridge
. SR 20/SR 99 Interchange
· 1-8 HOV lanes-Mollison to Magnolia Ave.
. SR 54 Utility Access Improvement
· Left-Tum lane to SR 75 (Coronado Bridge)
· 1-8 Median Barrier
· 1-8 to 1-15 Connector
· SR 75 Curve Realignment
. 1-5 INS Checkpoint Relocation
· Belt Parbiay at Ocean Parkway Interchange
· Belt Parkway Bridge over Mill Basin
· Belt Parbiay Bridge over Paerdegat Basin
12/2002 - re1TY Hays - Page 2 of 2
Value Management Strategies, Inc.
Ginger R. Adams, CVS-Life, FSA VE, Executive Vice President
Qualifications
Ms. Adams has more than 25 years experience in business management
and administration, including 18 years in value engineering. At VMS she
is responsible for facilitating studies, teaching in VE seminars and
workshops, marketing the finn's services, negotiating contracts, and
managing projects.
In 1995, Ms. Adams received a Certificate of Recognition from the
Federal Highway Administration for her work as Team Leader on the
State Route 125 project in San Diego. This project was named "Most
Outstanding Value Engineering Study of 1994" by the FHWA. In 1997
and 2000, she received the same award for her work as Team Leader on
the Cuesta Grade Operational Improvements and SR-46 Widening
projects in San Luis Obispo .County. Ms. Adams was the first consultant to
ever receive this award.
Also in 1995, Ms. Adams was the Keynote Speaker for the Opening
Session of the 28th National VE Conference held in Tokyo. Japan by the
Society of Japanese Value Engineering, and a featured speaker at a one-
day suppliers' seminar at Isuzu Motors Ud. world headquarters.
In 1993 she was awarded the SAVE 'Presidential Citation" for her years
of dedication and service to the Society. In 1999, Ms. Adams was
elevated to the status of Fellow in that organization.
Ms. Adams' outstanding skill with people has led to specific requests from
clients for her to facilitate various meetings, in addition to VENA studies.
Education
Business Administration
East Texas State University, Commerce, Texas
Registration
Certified Value Specialist. Life - No. 900501
SAVE Intemational
Employment Record
Value Management Strategies, Inc.
(1998 - Present) Executive Vice President
VEl, Inc./Edwards & Kelcey
(1978 - 1998) Vice President
Robertshaw Controls Company
(1970 - 1978) Administrative and Sales Support Staff
VALUE ENGINEERING PROJECT STUDIES - RECENT lllGHW A Y AND TRANSIT PROJECTS
California Department of
Transportation
Nevada Department of
Transportation
City of Camarillo, CA
Ft. Worth Transportation
Authority
VMS~
· 1-15 Overcrossing at La Mesa RoadINisqualli
· 1-10 HOV Lanes, 0-7, Los Angeles County, CA
· I 80 HOV, 0-4. Solano County, CA
· 1-5/Cannenita Road Overcrossing, 0-7, Los Angeles, CA
· 1-15/SR 79 South Interchange, 0-8, Temecula, CA
. SR 217/Goleta Old Town Infrastructure Improvements, 0-5, Santa
Barbara, CA
· SR 11/New Otay Mesa East POE, 0-11, San Diego County, CA
· SR 22 West Orange County Connection Project, 0-12, Orange
County,CA
· SR 44/stillwater Intersection Improvements, 0-2, Shasta County, CA
· 1-680/SR 4 Interchange, 0-4, Contra Costa County, CA
· Prunedale Freeway, 0-5, Monterey County, CA
· 1-80 Widening and Overtay, 0-3, Nevada and Sierra Counties, CA
· NB 1-5 to S6 SR 113 Connector, 0-3, Yolo County, CA
· SR 16 Widening, 0-3, Yolo County, CA
· Otay Mesa POE Outbound Cargo Facility, 0-11, San Diego, CA
· RI. 395 Widening, Manzanar Segment, 0-9, Inyo County, CA
· SR-46 Widening, 0-5, San Luis Obispo County, CA
· San Ysidro Port of Entry Traffic Operations, 0-11, San Ysidro, CA
· RI. 395 Widening, OlanchalCartago Segment, 0-9, Inyo County, CA
· 1-15 Widening, 0-8, Victorville to Barstow, CA
· Route 84 Widening, 0-4, Alameda County, CA
· SR-921l-880 Interchange Modifications, 0-4, Hayward, CA
· SR-133 Widening & Realignment, 0-12, Orange County, CA
· RI. 101 Willits Bypass, 0-1, Willits, CA
· SR 125194 Interchange, 0-11, San Diego, CA
· SR 156 Widening, 0-5, Monterey County, CA
· SR 78 & Ash street Improvements, 0-11, San Diego County, CA
· SR 101/Cuesta Grade Operational Improvements, 0-5, San Luis
Obispo, CA
· 1-405lSR-55 Interchange Upgrade and Transltway Connectors, 0-12,
Santa Ana, CA
· Fiber Optic Communications & CCTV System, 0-11, San Diego, CA
· Route 76 East, 0-11, San Diego, CA
. state Route 125, 0-11, San Diego, CA
· San Mateo-Hayward Bridge Seismic Retrofrt, San Mateo, CA
· Coronado-San Diego Bridge Seismic Retrofrt, 0-11, San Diego, CA
· 1-80lPyramid Way Interchange Reconstruction, Reno, Nevada
· Springville RoadlSR 101 Interchange
· RAILTRAN Corridor, Ft. Worth, Texas
12/2002 - Ginger Adams - Page 2 of 3
Qualifications
Education
Registration
Etnp/oytnentRecord
Professional
Affiliations
Publications
Value Management Strategies, Inc.
Robert B. Stewart, CVS, Vice President
Mr. Stewart manages VMS' operations in the Pacific Northwest. He has
been an instructor in many SAVE approved Module I VE Training
Workshops sponsored by a variety of educational institutions, govemment
agencies, and private companies.
Mr. Stewart has participated in more than 100 VE studies as both
facilitator and project manager, for a wide range of projects. He is the
current President of the Portland Chapter of SAVE International.
BA - Geography, 1990
University of Oregon, Eugene, OR
Graduate Studies - Geography, 1989-90
University of Aberdeen, Aberdeen, ScoUand
Certified Value Specialist - No. 920601
SAVE Intemational
Value Management Strategies, Inc.
(1999-Present) Vice President
Consulting Value Specialists, Inc.
(1990-1999) President
SAVE Intemational:
· Portland Chapter President
"Value Engineering in Design & Construction: 1992 (Editor, VE
Textbook)
"Leading the Value Team: An Assessment of the Team Leader's Role in
Design & Construction," 1992 (SAVE Intemational Annual Conference
Proceedings)
"Beyond the Cost Savings Paradigm: Evaluation and Measurement of
Project Performance", 2002 (Value Wortd)
VANE Project Studies-
HIGHWAY AND TRANSIT PROJECTS
California Department of
Transportatio/l
City of New York
State of Washington
Transportation
Improvement Board
Oregon Department of
Transportation
1"-,
VMS~
· SR 65 - Uncoln Bypass, Lincoln, CA
· SR 99 WideninglHammer Lane Interchange, stockton, CA
· 1-215 Improvements, San Bemardino, CA
· SR 80/Ashby Interchange, Berkeley, CA
· SR 101 WideninglWilfred Avenue Interchange, Santa Rosa, CA
· 1-5/SR 74 Interchange, San Juan Capistrano, CA
· SR 99 Widening & Pavement Rehabilitation, Fresno, CA
· Maxwell Bridge Replacement, Napa, CA
· Marin SR 101 Lane HOV Gap Closure, Marin County, CA
· Route 5801N0rthside Interchange, Uvermore, CA
· 1-511-805 Widening Improvements, San Diego, CA
· SR 111IBrawley Bypass-Project Transition, San Diego, CA
· SR 12 Road Rehabilitation & Bridge Replacement, Solano County,
CA
· SR 101/Woodside Road Interchange, San Mateo County, CA
· Marysville Bypass to Oroville Freeway, YubalButte Counties, CA
· Constructibility & staging, San Francisco/Oakland East Bay Bridge,
CA
· West Approach, San Francisco/Oakland Bay Bridge, CA
. West End Demolition, San Francisco/Oakland Bay Bridge, CA
· Devil's Slide Tunnel, San Mateo County, CA
· Ten-Mile River Bridge, Fort Bragg, CA
· Route 132 Expressway, Modesto, CA
· 1-15 Managed Lanes - Middle Segment, San Diego, CA
· 1-80 HOV Gap Closure, Contra Costa, CA
· Terra Bella Expressway, Tulare, CA
· NB 405/S6 101 Connector Gap Closure, Los Angeles, CA
· Riv-91, Add HOV Lanes, Riverside, CA
· Belt Parkway at Ocean Parkway Interchange
· Belt Parkway Blidge over Mill Basin
· Belt Parkway Bridge over Paerdegat Basin
· BrittonParkway,Lacey,VVA
. Allen street Bridge Project, Kelso, WA
· 3rd street Grade Separation Project, Aubum, WA
· NE 20th Avenue Improvements, Clark County, WA
· NVl/99th street Improvement Project, Clark County, VVA
· Burton Road, Phases II & III, Vancouver, VVA
· NE Fourth Plain Boulevard, Vancouver, WA
· 192nd Avenue, Phase I Improvements, Vancouver, VVA
· 1-5 Rehabilitation at Jefferson
12/2002 - Robert Stewart - P_ 2 of 2
Attachment D - Recent, Relevant Work
230f32
VMS Caltrans P~ject List
Recent Projects and References
Headquarters VA Program
Reference: George Hunter, VA Brandl Hanager (91.6) 653-3835
North Region
Reference: Oscar Vasquez, Region VA Coordinator (91.6) 274-61.1.1.
caltntns:
DIstrict
CT-l
CT-l
CT-l
CT-l
CT-l
CT-2
CT-2
CT-2
CT-2
CT-2
CT-2
CT-3
CT-3
CT-3
CT-3
CT-3
CT-3
CT-3
CT-3
Task Order
204.183
204.191
232
202.035
212
202.172
117
202.147
202.159
204.194
61
225
226
134
154
202.158
202.135
202.152-B
261
T@am I ....er
F. KoIano
F. Kolano
F. KoIano
G.Adams
R. Stewart
G. Adams
M.Adams
R. Stewart
T. Hays
T.Hays
T. Hays
F. Kolano
F.KoIano
G.Adams
G.Adams
G.Adams
M.Adams
R. Stewart
R. Stewart
Prated: Name
SR 101 Roadway StabilizatIOn
Route 101 Eureka An:ala Ccn1dor Improvement
8lg Lagoon CUrve Improvement and Shoulder Widening
Willits Bypass
Ten-Mile RIver llrIdge SeIsmIc Upgrade
SR 44/Stlllwaterlnter.;edjon
SR 299 In Modoc COUnty
SR 299/0000 Ortve
Thllll 8<1dge CrossIng of the Feather RIver
Lake 8r1tlon 8<1dge
SR 89 - Lake 8r1tlon 8r1dge
1-80 Capacity Improvements
SR 80 Placervtlle OperatIOns Improvement
NB 1-5 to 58 SR 113 Connector - Woodland, CA
Yolo 16 WIdening, Yolo COUnty, CA
Nevada/SIemt 80 Pavement Rehabilitation
Uncoln Bypass Project
Marysvllle Bypass to llrovIlIe Freeway
SR94/SR125 Interd\ange - Missing Moves
District 4 - Bay Area
Reference: Hamid Khonam, District VA Coordinator (51.0) 286-4995
Caltrans Tilde Order Tm.m Leader Protad: Name
DIsb1d
CT-4 185 F. Kolano contra Costa SR 4 Bypass
CT-4 204.186 F. KoIano contra Costa 1-680 AuxIliary Lanes
CT-4 221 F. Kolano SR 101 AuxIliary Lanes
CT-4 255 F. KoIano SR84 at PIgeon Pass
CT-4 202.067 G.Adams SR 84 Realignment, Alameda COUnty
CT-4 202.176 G. Adams R 680/SR 4 InterChange
CT-4 215 G. Adams Solano 80 HOV Lane
CT-4 202.155 M.Adams SR 198 Expressway
CT-4 218 M. Adams Route 880 Broadway/laCkSon Street Interchange Improvements
CT-4 106 R. Sperling SR 101 WldenlngfWllfred Avenue Interchange
CT-4 202.087 R. SpertIng 1-680 SUnol Grade WIdening
CT-4 110 R. Stewart Marin 101 HOV Lane Gap Oosure
CT-4 116 R. Stewart Maxwell BrIdge Replacement
CT-4 131 R. Stewart Route 580/Northslde Interchange
CT-4 142 R. Stewart San Frandsco/Ookland Bay BrIdge
CT-4 144 R. stewart Solano 12 - Road Rehabilitation and 8r1dge Replacement
CT-4 151 R. Stewart SR 10l/Woodslde Road Interchange
CT-4 202.098 R. Stewart Route 8O/Ashby Avenue Interthange
CT-4 202.166 R. Stewart Doyle Drtve
CT-4 202.170 R. Stewart Devils Slide Tunnel
CT-4 204.182 R. Stewart Route 680/Northbound HOV Improvements
CT-4 214 R. Stewart 1-80 HOV Gap Oosure
CT-4 228 R. Stewart SFOBB East Span Seslmlc Safety Project (VBI and SAS)
24 of32
CT--4
981109
R. Stewart
CCnstructIbIuty study
Route 80/A!t1~ Avenue Inlet'thange
Central Region
Reference: Habib Sabzehzar, District VA Coordinator (209) 445-6802
Caltrans
DIstrict:
CT-5
CT-5
CT-5
CT-53
CT-53
CT-53
CT-53
CT-6
CT-6
CT-6
CT-6
CT-6
CT-6
CT-6
CT-9
CT-9
CT-9
CT-9
CT-IO
CT-l0
CT-I0
Task Order
202.115
203.161
204.190
200
205.181
207
230
204.189
202.012
204.192
l1S
202.106
227
115
216
123
202.101
202.0.1
125
239
95
Team Lstder
G._ms
G._ms
G._ms
T. Hays
T. Hays
T. Hays
T. Hays
F. Kolano
G._ms
M._ms
R. Stewart
R. Stewart
R. Stewart
T. Hays
F.KoIano
G._ms
G._ms
T. Hays
M._ms
R. Stewart
R. Stewart
Protect Name
SR 46 WidenIng
Prunedale Freeway
Goleta Old Town InfraslJUclure Improvements
Guides - ThIrd edition
HQ 2001 Annual Report
Cailrans Annual Report
HQ SHOPP Program
Falrmead In\1!n:hange
SRI56 Road WIdening
Kern County SR 46
SR 99 WIdenIng and Pavement Rehabll_
SR 101 Wldenlng/Wllfred Avenue In\1!n:hange
D-6 Terr.a Bella Expressway
SR 46 WIdenIng
5hetwIn SUmmit Rehabll_ Project
Manzanar Four-une Project
OIancha 1 Cartago Four Lane
BIg PIne Rehabilitation
205 Widening
Route 132 Expressway
SR 99 WldenJng/Hammer Lane In\1!n:hange
District 7 - Los Angeles and Ventura Counties
Reference: 3amal EI-3amal District VA Coordinator (213) 897-0479
Calb'ans
District:
CT-7
CT-7
CT-7
CT-7
CT-7
CT-7
CT-7
CT-7
CT-7
cr-7
cr-7
CT-7
CT-7
CT-7
CT-7
CT-7
CT-7
CT-7
Task 0nIS'
204.1991.
220
256
219
238
240
103
132
143
146
162
202.165
251
204.178
204.188
204.195
237
246
Team I _MIa.
F. Kolano
F. Kolano
F. Ko1ano
G._ms
G._ms
J. Nelson
M._ms
M._ms
M._ms
M. Adams
M. Adams
M._ms
R. Stewart
T. Hays
T. Hays
T. Hays
T. Hays
T. Hays
~Name
SR 134 Hollywood Way Intersection ModJftcations
WIden SR 138 from Two to Four Lanes
IA 71 Gap 00Sure
1-5 - CarmenIta Road OVg 0 v.dllg
1-10 HOV
lA2 MULTI-MODAL PARKWAY
Ar1lof" VItae In\1!n:hange
Route 91 Pavement Rehabll_
SR 710 Rehabl_
Ventura 23 WIdenIng
Ventura 118 Widening
405Con1dor
NB 4OS/SB 101 Connector Gap Cosure with Ayund... Structure.
SR 47 Ocean Boulevard Project
1-5 Con1dor
IA 710 Atlantic and Bandlnl Boulevard _ange
YEN 101 Mussel Shoals 1 La Conchita
1-5 WIdening at Magic Mountain Par1<way
District 8 - Riverside and San Bernardino Counties
Reference: Renetta Cloud, District VA Coordinator (909) 383-6712
Caltrans
DIstrict
cr-8
CT-B
CT-8
CT-S
Task Order
213
210
258
211
Team Leader
F. Kolano
G._ms
G. Adams
M. Adams
Profed: Name
SR 138 Truck. Oimbtng Lane
Reconstruction of 1-151 SR-79 South Interchange
1-15 Overaossln9 at La Mesa Road 1 Nlsqualll
San Bernardino 1-10 Mixed Row Lane Project
25 of 32
cr-8
cr-8
cr-8
cr-8
204.198
102
252
273
T. Hays
R. stewart
R. Stewart
R. Stewart
1-15 Pavement Rehabl1lt3tion (Desert Mix)
1-215 Improvements (San Bernardino)
RJv-9l, ADD HOV Lanes, ModIfY Inb!rchanges
COnstruct New Interchange at Ramon Drive
District 11 - San Diego and Imperial Count/es
Reference: Jeanene "Chili" Cllch, DIstrict VA Coordinator (619) 688-4217
C8lb-ans
Dhtrtd:
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
cr-ll
Ta!lk Order
241
104
139
203.104
204.180
205.196
222
248
85
122
88
133
137
242
100
128
202.138
202.145
202.173
203.130
203.136
205.199B
217
244
245
Team .......r
F. KoIano
G. Adams
G. Adams
G. Adams
G. Adams
G. Adams
G. Adams
G. Adams
G. Adams
M.Adams
M. Adams
R. stewart
R. Stewart
R. stewart
T. Hays
T. Hays
T.1fays
T. Hays
T. Hays
T. Hays
T.1fays
T. Hays
T. Hays
T. Hays
T. Ifays
Profect: NamA
Brawley By Pass - Stage 2
INTRAC
Olay Mesa POE Southbound cargo Facility
INTRAC
SR I1/New Olay Mesa East Port of Entry
RIght-of-Way DecertIftcatIon Process
NPOES Strategies
Utluty Agreement Process Study
San YsIdro Port of Entry
SR 7 Expressway On-Fann Systems Cures
1-15/SR 56 Interchange
1-5/1-805 Widening Improvements
8<awIey Bypass - Project Transition
1-15 Managed Lanes Mid 5ectlon
1-15 Managed Lanes, Phase 1
COSt EstImatlng I'roa!dures
SR98 COI11dor
SR67 - Bradley Interchange
Improve SR 56/1-5 Tratnc Inletface
1-15 NoIse Aba_
1-5 Con1dor Enhancements
0-11 no Imperial In1gatIon DistJtct Process
SR 76 ~m Project OeveIopment Scope
0-11 VA Training
SR-67 Inb!rchange at RIverford Road
District 12 - Orange County
Reference: Sere :ck/zy;Jn, District VA Coordinator (949) 724-2526
Caltrans
Dlsbict
cr-12
cr-12
cr-12
Task Order
202.056
202.169
202.156
T8a:m Leader
G. Adams
G. Adams
R. stewart
Proted: Name
SR 133 Wldenfng and Reangnment
5R 22/West orange County COnnection Project
I-51 SR 74 Interchange Improvements
26 of32
Attachment E - Current Billing Schedule
27 <!f 32
Valoe Management Strategies, Inc.
Billing Schedule - 2003 (Caltrans)
Name Projeet Title Billing Rate
R. Terry Hays Project Manager $217.03
Virginia Adams Team Leader $147.62
Robert Stewart Team Leader $134.17
Fred Kolano Team Leader $127.96
Janice PlIIker Project Coordinator $69.77
Jessica Combs Clerical Support $51.18
Sandy Northrop Administrative Assistant $$48.74
Note: Above rates include OH rate of 183.92% and Fee of 9.0010
per Caltrans Contract 53A0063
280[32
City of Temecula
French Valley I 1.15 Overcrosslng and Interchange Improvements
V A Study Budget
IWn .lIiuWl I12IIm BiWl tlII1 IlWIl
Pre VA Study Activities
Project Manager Hays 6 $217.03 $1,302.18
Team Leader Adams 16 $147.62 $2,361.92
Clerk:al Support Combs 0 $51.18 $0.00
Administrative Assistant Northrop 4 $48.74 $194.96
Project Coordinator Parker 4 $69.77 $279.08
Total Pre VA Study Activities: $4,238.14
VA Study
Project Manager Hays 0 $217.03 $0.00
Team Leader Adams 60 $147.62 $8,857.20
Clerical Support Combs 0 $51.18 $0.00
Administrative Assistant Northrop 0 $48.74 $0.00
Project Coordinator Parker 0 $69.77 $0.00
Total VA Study: $8,857.20
VA Study Implementation
Project Manager Hays 0 $217.03 $0.00
Team Leader Adams 12 $147.62 $1,771.44
Clerical Support Combs 0 $51.18 $0.00
Administrative Assistant Northrop 0 $48.74 $0.00
Project Coordinator Parker 0 $69.77 $0.00
Total VA Study Implementation: $1,771.44
VA Study Report - Preliminary
Project Manager Hays 4 $217.03 $868.12
Team Leader Adams 32 $147.62 $4,723.84
Clerical Support Combs 32 $51.18 $1,637.76
Administrative Assistant Northrop 0 $48.74 $0.00
Project Coordinator Parker 16 $69.77 $1,116.32
Total VA Study Report - Preliminary: $8,346.04
Final Report
Project Manager Hays 6 $217.03 $1,302.18
Team Leader Adams 16 $147.62 $2,361.92
Clerical Support Combs . $51.18 $409.44
Administrative Assistant Northrop . $48.74 $389.92
Project Coordinator Parker 16 $69.77 $1,116.32
Total Rnal Report : $5,579.78
Labor SubTotal: !l28.692.60
Other Direct Costs
Cateaorv l!I!l. .!Il.ImIw: BiWl tlII1 IlWIl
Adams
Air Travel EA 0 $0.00 $0.00
Airport Shuttle RT 0 $O.OQ $0.00
Rental Car Day 0 $0.00 $0.00
Meals and Inddentals Day 10 $40.00 $400.00
Lodging/Hotels Day 10 $100.00 $1,000.00
Parldng Day 10 $5.00 $50.00
Personal Car Mile 800 $0.36 $288.00
Total Adams: $1,738.00
Miscellaneous Direct Costs
ShippIng 15 1 $350.00 $350.00
Reproduction 15 I $1,000.00 $1,000.00
Conference Room Day 0 $500.00 $0.00
TO ODe Adjustment 15 0 $0,00 $0.00
Total Hlsc. ODC: $1,350.00
ODC SubTotal: !l3.088.00
Total Task Order - French Valley: 531.780.60
ITEM 15
,
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANC
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/City Council
~J;william G. Hughes, Director of Public Works/City Engineer
June 24, 2003
DATE:
SUBJECT:
Award the Construction Contract for Project No, PW02-13
Pavement Rehabilitation Program - Rancho California Road, Margarita Road
to Meadows Parkway
PREPARED BY:
Greg Butler, Principal Engineer
Mayra De La Torre, Associate Engineer
RECOMMENDATION:
That the City Council:
1. Award a construction contract for Project No. PW02-13 Pavement Rehabilitation
Program - Rancho California Road, Margarita Road to Meadows Parkway to R. J. Noble
Company in the amount of $629,433.50 and authorize the Mayor to execute the contract.
2. Authorize the City Manager to approve change orders not to exceed the contingency
amount of $62,943.35 which is equal to 10% of the contract amount.
BACKGROUND: On May 13, 2003 the City Council approved the Construction Plans and
Specifications and authorized the Department of Public Works to solicit construction bids for the
subject project.
The program includes the rehabilitation of deteriorated city streets by reconstructing the roads and
replacing the associated pavement delineation, and traffic signal detection loops. The Pavement
Management System Project for FY2002-2003 is included in the City's Capital Improvement
Program.
Seven (7) bids were received and publicly opened on June 10, 2003, the results were as follows:
1,
2.
3.
4.
5.
6.
7,
R.J. Noble Company
Vance Corporation
All American Asphalt
Pacific Hydrotech Corp.
McLaughlin Engineering & Mining, Inc.
J. D. Paving, Inc.
T.B, Penick & Sons, Inc,
$629,433.50
$633,380.00
$656,754.00
$676,403.20
$696,740.40
$869,826.47
$978,652.20
A copy of the bid summary is available for review in the City Engineer's office.
R:\AGENDA REPORTS\2003\062403\PW02-13 Rehab awd.DOC
Staff has reviewed the bid proposals and found R.J. Noble Company of Orange, California to be the
lowest responsible bidder for this project. R.J. Noble Company has extensive experience in road
construction projects and has successfully completed similar projects for the City in the past.
The Engineer's estimate for this project was $700,000.00,
FISCAL IMPACT: The Pavement Rehabilitation Program is a Capital Improvement Project
funded through Measure A, Capital Project Reserves and Assembly Bill 2928 funds. Adequate
funds are available for the Pavement Rehabilitation - Rancho California Road, Margarita Road to
Meadows Parkway, Project No. PW02-13 in Account No. 210-165-655-5804, The total project cost
is $692,376.85, which includes the contract amount of $629,433.50 plus 10% contingency of
$62,943.35.
ATTACHMENT:
1. Location Map
2. Project Description
3. Contract
2
R:\AGENDA REPORTS\2003\062403\PWD2-13 Rehab awd.DOC
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CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT
CONTRACT
FOR
PROJECT NO. PW02-13
PA VEMENT REHAB/LIT A TION PROGRAM 2002-03
RANCHO CALIFORNIA ROAD, MARGARITA ROAD TO MEADOWS PARKWA Y
THIS CONTRACT, made and entered into the 24th day of June, 2003, by and between the City
of Temecula, a municipal corporation, hereinafter referred to as "CITY", and R.J. Noble
Company, hereinafter referred to as "CONTRACTOR."
WITNESSETH:
That CITY and CONTRACTOR, for the consideration hereinafter named, mutually agree
as follows:
1.a. CONTRACT DOCUMENTS. The complete Contract includes all of the Contract
Documents, to wit: Notice Inviting Bids, Instructions to Bidders, Proposal, Performance
Bond, Labor and Materials Bond, Plans and Specifications entitled PROJECT NO.
PW02-13, PAVEMENT REHABILITATION PROGRAM 2002-03 RANCHO
CALIFORNIA ROAD, MARGARITA ROAD TO MEADOWS PARKWAY, Insurance
Forms, this Contract, and all modifications and amendments thereto, the State of
California Department of Transportation Standard Specifications (latest Ed.) where
speCifically referenced in the Plans and Technical Specifications, and the latest version
of the Standard Specifications for Public Works Construction, including all supplements
as written and promulgated by Public Works Standards, Inc (hereinafter, "Standard
Specifications") as amended by the General Specifications, Special Provisions, and
Technical Specifications for PROJECT NO. PW02-13, PAVEMENT REHABILITATION
PROGRAM 2002-03 RANCHO CALIFORNIA ROAD, MARGARITA ROAD TO
MEADOWS PARKWAY. Copies of these Standard Specifications are available from the
publisher:
BNi Building News
Division of BNi Publications, Inc.
1612 South Clementine st.
Anaheim, California 92802
(714) 517-0970
The Standard Specifications will control the general provisions, construction materials,
and construction methods for this Contract except as amended by the General
Specifications, Special Provision, and Technical Specifications for PROJECT NO.
PW02-13, PAVEMENT REHABILITATION PROGRAM 2002-03 RANCHO
CALIFORNIA ROAD, MARGARITA ROAD TO MEADOWS PARKWAY.
In case of conflict between the Standard Specifications and the other Contract
Documents, the other Contract Documents shall take precedence over, and be used in
lieu of, such conflicting portions.
CONTRACT
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R:\CIPIPROJECTSIPW02IPW02-13 Rehab 02-ll3IPS & E\Contract,dot
Where the Contract Documents describe portions of the work in general terms, but not in
complete detail, it is understood that the item is to be furnished and installed completed
and in place and that only the best general practice is to be used. Unless otherwise
specified, the CONTRACTOR shall furnish all labor, materials, tools, equipment, and
incidentals, and do all the work involved in executing the Contract.
The Contract Documents are complementary, and what is called for by anyone shall be
as binding as if called for by all. Any conflict between this Contract and any other
Contract Document shall be resolved in favor of this Contract.
2. SCOPE OF WORK. CONTRACTOR shall perform everything required to be performed,
shall provide and furnish all the labor, materials, necessary tools, expendable
equipment, and all utility and transportation services required for the following:
PROJECT NO. PW02-13, PAVEMENT REHABILITATION PROGRAM 2002-03
RANCHO CALIFORNIA ROAD, MARGARITA ROAD TO MEADOWS PARKWAY
All of said work to be performed and materials to be furnished shall be in strict
accordance with the Drawings and Specifications and the provisions of the Contract
Documents hereinabove enumerated and adopted by CITY.
3. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished
and work performed and completed under the direction and supervision, and subject to
the approval of CITY or its authorized representatives.
4. CONTRACT AMOUNT AND SCHEDULE. The CITY agrees to pay, and
CONTRACTOR agrees to accept, in full payment for, the work agreed to be done, the
sum of: SIX HUNDRED TWENTY NINE THOUSAND FOUR HUNDRED THIRTY
THREE DOLLARS and FIFTY CENTS ($629,433.50), the total amount of the base bid.
CONTRACTOR agrees to complete the work in a period not to exceed forty (40)
working days, commencing with delivery of a Notice to Proceed by CITY. Construction
shall not commence until bonds and insurance are approved by CITY.
5. CHANGE ORDERS. All change orders shall be approved by the City Council, except
that the City Manager is hereby authorized by the City Council to make, by written order,
changes or additions to the work in an amount not to exceed the contingency as
established by the City Council.
6. PAYMENTS
LUMP SUM BID SCHEDULE:
A. Before submittal of the first payment request, the CONTRACTOR shall submit to
the City Engineer a schedule of values allocated to the various portions of the
work, prepared in such form and supported by such data to substantiate its
accuracy as the City Engineer may require. This schedule, as approved by the
City Engineer, shall be used as the basis for reviewing the CONTRACTOR's
payment requests,
CONTRACT
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R:\CIPIPROJECTSIPW02IPW02.13 Rehab 02-03IPS & E\Contracldot
UNIT PRICE BID SCHEDULE:
B. Pursuant to Section 20104.50 of the Public Contract Code, within thirty (30) days
after submission of a payment request to the CITY, the CONTRACTOR shall be
paid a sum equal to ninety percent (90%) of the value of the work completed
according to the bid schedule. Payment request forms shall be submitted on or
about the thirtieth (30th) day of each successive month as the work progresses.
The final payment, if unencumbered, or any part thereof unencumbered, shall be
made sixty (60) days after acceptance of final payment and the CONTRACTOR
filing a one-year Warranty and an Affidavit of Final Release with the CITY on
forms provided by the CITY.
C. Payments shall be made on demands drawn in the manner required by law,
accompanied by a certificate signed by the City Manager, stating that the work
for which payment is demanded has been performed in accordance with the
terms of the Contract, and that the amount stated in the certificate is due under
the terms of the Contract. Partial payments on the Contract price shall not be
considered as an acceptance of any part of the work.
D. Interest shall be paid on all undisputed payment requests not paid within thirty
(30) days pursuant to Public Contracts Code Section 20104.50. Public Contract
Code Section 7107 is hereby incorporated by reference.
E. In accordance with Section 9-3.2 of the Standard Specifications for Public Works
Construction and Section 9203 of the Public Contract Code, a reduction in the
retention may be requested by the Contractor for review and approval by the
Engineer if the progress of the construction has been satisfactory, and the project
is more than 50% complete. The Council hereby delegates its authority to
reduce the retention to the Engineer.
7. LIQUIDATED DAMAGES - EXTENSION OF TIME. In accordance with Government
Code Section 53069.85, CONTRACTOR agrees to forfeit and pay to CITY the sum of
one thousand dollars ($1,000.00) per day for each calendar day completion is delayed
beyond the time allowed pursuant to Paragraph 4 of this Contract. Such sum shall be
deducted from any payments due to or to become due to CONTRACTOR. Such sum
shall be deducted from any payments due to or to become due to CONTRACTOR.
CONTRACTOR will be granted an extension of time and will not be assessed liquidated
damages for unforeseeable delays beyond the control of, and without the fault or
negligence of, the CONTRACTOR including delays caused by CITY. CONTRACTOR is
required to promptly notify CITY of any such delay.
8. WAIVER OF CLAIMS. On or before making each request for payment under Paragraph
6 above, CONTRACTOR shall submit to CITY, in writing, all claims for compensation as
to work related to the payment. Unless the CONTRACTOR has disputed the amount of
the
payment, the acceptance by CONTRACTOR of each payment shall constitute a release
of all claims against the CITY related to the payment. CONTRACTOR shall be required
to execute an affidavit, release, and indemnity agreement with each claim for payment.
9. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per
CONTRACT
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R:\CIP\PROJECTS\PW02\PW02-13 Rehab 02'{)3\PS & E\Contract.dot
diem wages and the general rate for holiday and overtime work in this locality for each
craft, classification, or type of workman needed to execute this Contract, from the
Director of the Department of Industrial Relations. These rates are available from the
California Department of Industrial Relations' Internet Web Site at http://www.dir.ca.gov.
CONTRACTOR shall post a copy of such wage rates at the job site and shall pay the
adopted prevailing wage rates as a minimum. CONTRACTOR shall comply with the
provisions of Section 1773.8, 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code.
Pursuant to the provisions of 1775 of the Labor Code, CONTRACTOR shall forfeit to the
CITY, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for each
laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for
any work done under this Contract, by him or by any subcontractor under him, in
violation of the provisions of the Contract.
10. TIME OF THE ESSENCE. Time is of the essence in this contract.
11. INDEMNIFICATION. All work covered by this Contract done at the site of construction
or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR
alone. CONTRACTOR agrees to save, indemnify, hold harmless and defend CITY, its
officers, employees, and agents, against any and all liability, injuries, or death of persons
(CONTRACTOR's employees included) and damage to property, arising directly or
indirectly out of the obligations herein undertaken or out of the operations conducted by
CONTRACTOR, save and except claims or litigations arising through the sole active
negligence or sole willful misconduct of the CITY.
The CONTRACTOR shall indemnify and be responsible for reimbursing the CITY for any
and all costs incurred by the CITY as a result of Stop Notices filed against the project.
The CITY shall deduct such costs from Progress Payments or final payments due to the
CITY.
12. GRATUITIES. CONTRACTOR warrants that neither it nor any of its employees, agents,
or representatives has offered or given any gratuities or promises to CITY's employees,
agents, or representatives with a view toward securing this Contract or securing
favorable treatment with respect thereto.
13. CONFLICT OF INTEREST. CONTRACTOR warrants that he has no blood or marriage
relationship, and that he is not in any way associated with any City officer or employee,
or any architect, engineer, or other preparers of the Drawings and Specifications for this
project. CONTRACTOR further warrants that no person in its employ has been
employed by the CITY within one year of the date of the Notice Inviting Bids.
14. CONTRACTOR'S AFFIDAVIT. After the completion of the work contemplated by this
Contract, CONTRACTOR shall file with the City Manager, its affidavit stating that all
workmen and persons employed, all firms supplying materials, and all subcontractors
upon the Project have been paid in. full, and that there are no claims outstanding against
the Project for either labor or materials, except certain items, if any, to be set forth in an
affidavit covering disputed claims or items in connection with a Stop Notice which has
been filed under the provisions of the laws of the State of California.
CONTRACT
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R:ICIPIPROJECTSIPW02IPW02,13 Rehab 02-C3IPS & EIContract.dot
15. NOTICE TO CITY OF LABOR DISPUTES. Whenever CONTRACTOR has knowledge
that any actual or potential labor dispute is delaying or threatens to delay the timely
performance of the Contract, CONTRACTOR shall immediately give notice thereof,
including all relevant information with respect thereto, to CITY.
16. BOOKS AND RECORDS. CONTRACTOR's books, records, and plans or such part
thereof as may be engaged in the performance of this Contract, shall at all reasonable
times be subject to inspection and audit by any authorized representative of the CITY.
17. INSPECTION. The work shall be subject to inspection and testing by CITY and its
authorized representatives during manufacture and construction and all other times and
places, including without limitation, the plans of CONTRACTOR and any of its suppliers.
CONTRACTOR shall provide all reasonable facilities and assistance for the safety and
convenience of inspectors. All inspections and tests shall be performed in such manner
as to not unduly delay the work. The work shall be subject to final inspection and
acceptance notwithstanding any payments or other prior inspections. Such final
inspection shall be made within a reasonable time after completion of the work.
18. DISCRIMINATION. CONTRACTOR represents that it has not, and agrees that it will
not, discriminate in its employment practices on the basis of race, creed, religion,
national origin, color, sex age, or handicap.
19. 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 Contract and also govern the interpretation of this Contract. Any litigation
concerning this Contract shall take place in the municipal, superior, or federal district
court with geographic jurisdiction over the City of Temecula. In the event of litigation
between the parties concerning this Contract, the prevailing party as determined by the
Court, shall be entitled to actual and reasonable attorney fees and litigation costs
incurred in the litigation.
20. PROHIBITED INTEREST. No member, officer, or employee of the City of Temecula or
of a local public body shall have any interest, direct or indirect, in the contract of the
proceeds thereof during his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no
board member, officer or employee of the City of Temecula has any interest, whether
contractual, non-contractual, financial or otherwise, in this transaction, or in the business
of the contracting party other than the City of Temecula, and that if any such interest
comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such
interest would not be considered a conflict of interest under Article 4 (commencing with
Section 1090) or Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the
Government Code of the State of California.
21. ADA REQUIREMENTS. By signing this contract, Contractor certifies that the Contractor
is in total compliance with the Americans with Disabilities Act of 1990, Public Law 101-
336, as amended.
CONTRACT
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R:\CIP\PROJECTS\PW02\PW02-13 Rehab 02-03\PS & EIContracldot
22. WRITTEN NOTICE. Any written notice required to be given in any part of the Contract
Documents shall be performed by depositing the same in the U.S. Mail, postage prepaid,
directed to the address of the CONTRACTOR as set forth in the Contract Documents,
and to the CITY addressed as follows:
Mailing Address:
William G. Hughes
Director of Public Works/City Engineer
City of Temecula
P.O. Box 9033
Temecula, CA 92589-9033
Street Address:
William G. Hughes
Director of Public Works/City Engineer
City of Temecula
43200 Business Park Drive
Temecula, CA 92590-3606
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed on the
date first above written.
DATED:
CONTRACTOR
R. J. Noble Company
P.O. Box 620
Orange, CA 92856
(714) 637-1550
Stan Hilton, Secretary
Print or type NAME & TITLE
(Signatures of two Corporate Officers required for Corporations)
DATED:
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
APPROVED AS TO FORM:
Peter M. Thorson, City Attorney
ATTEST:
Susan W. Jones. CMC, City Clerk
CONTRACT
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R:\CIPIPROJECTSIPW02IPW02,13 Rehab 02.fJ31PS & EIContract.dot
ITEM 16
APPROVA~
CITY ATTORNEY
DIRECTOR OF FINAN
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/City Council
~~illiam G. Hughes, Director of Public Works/City Engineer
June 24, 2003
DATE:
SUBJECT:
Assessment District No. 03-04 (John Warner Road)
PREPARED BY:
Greg Butler, Principal Engineer
Mayra De La Torre, Associate Engineer.
RECOMMENDATION:
That the City Council:
1. ACCEPT the Petition Requesting the Initiation of Proceedings to Consider the Formation of
an Assessment District to Finance the Costs of Street and Storm Drain Improvements -
Proposed John Warner Road Assessment District.
2. ADOPT a resolution entitled:
RESOLUTION NO. 2003-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA, OF INTENTION TO ACQUIRE
IMPROVEMENTS AND TO FORM ASSESSMENT DISTRICT NO. 03.{)4
(JOHN WARNER ROAD)
3. ADOPT a resolution entitled:
RESOLUTION NO. 2003-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA, OF APPROVAL OF PRELIMINARY
ENGINEER'S REPORT, DESCRIBING BOUNDARIES OF PROPOSED
ASSESSMENT DISTRICT AND CALLING FOR PUBLIC MEETING AND
HEARING, AND ELECTION - ASSESSMENT DISTRICT NO. 03-04
(JOHN WARNER ROAD)
4. APPROVE the Construction Plans and Specifications and authorize the Department of
Public Works to solicit construction bids for the John Warner Road Assessment District
Improvements, Project No. PW02-07.
BACKGROUND: The property owners in the vicinity of John Warner Road live in an
area that was originally developed prior to the City's incorporation. At the time of development, the
County of Riverside allowed the development to proceed without requiring the construction of paved
streets and needed storm drain improvements. The dirt roads, which provide access to the
properties in the area, frequently erode and deposit sediment on downstream properties and streets
and are a maintenance burden on the City. When significantly wet, these dirt roads are severely
impacted to the point where the roads are impassable, the residents are unable to leave or return to
their homes. Emergency services (Police, Fire, Ambulance) are unable to gain vehicular access to
the properties due to the impassable roadways. A majority of the residents in the area recognized
the need for street and storm drain improvements approached the City seeking assistance in getting
the needed improvements constructed. General support for the formation of an Assessment District
was confirmed at an informal public meeting and through a mailed questionnaire. The attached
Petition formalizes the residents' request to form an Assessment district to fund the proposed
improvements.
Public Works department staff have performed the necessary analysis of the proposed
improvements, determined that each parcel within the proposed district receives special and direct
benefit from the improvements to be funded by the Assessment District, have prepared and
reviewed the estimate of construction cost, and have prepared the Preliminary Engineer's Report
which formalizes all of the findings and determines the preliminary assessments.
The City's Bond Council, Paul Thimmig of Quint & Thimmig, prepared the attached Resolution of
Intention and Resolution Approving the Preliminary Engineer's Report, needed to formally begin the
Assessment District formation process.
The specifications and contract documents are complete and the project is ready to be advertised
for construction bids. The contract documents are available for review in the City Engineer's office,
The Engineer's Construction Estimate for this project is $1,123,400.00, The per parcel assessment
is proposed to be $37,435.36 for the street improvement zone and $32,509,39 for the storm drain
improvement zone.
FISCAL IMPACT: The construction of these improvements is to be funded with Assessment
District bond proceeds, Therefore, the award of this contract will be contingent upon the successful
formation of the Assessment District.
ATTACHMENTS:
1. Resolution No. 03-_ - Resolution of Intention
2. Resolution No. 03-_ - Resolution Approving Preliminary Engineer's Report
3. Petition
4. City Engineer Letter
5. Preliminary Engineer's Report
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA OF INTENTION TO ACQUIRE
IMPROVEMENTS AND TO FORM AN ASSESSMENT DISTRICT
NO. 03-04 (JOHN WARNER ROAD)
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER
AS FOLLOWS:
WHEREAS, the City Council (the "Council") of the City of Temecula (the "City") is of the
opinion that the public interest and convenience require and that it is the intention of the Council to
order the acquisition and construction of the improvements described in Exhibit A attached hereto
and incorporated herein by this reference (the "Improvements"); and
WHEREAS, the Council will accomplish the financing of the Improvements by the formation
of the City of Temecula Assessment District No. 03-04 (John Warner Road) (the "Assessment
District") pursuant to the Municipal Improvement Act of 1913, being Division 12 of the California
Streets and Highways Code (the "Act") and the issuance of municipal bonds pursuant to the
Improvement Bond Act of 1915, being Division 10 of the Califomia Streets and Highways Code (the
"Bond Act"); and
WHEREAS, the land within the boundaries of the Assessment District will be specially
benefited by the Improvements; and
WHEREAS, any future sub-division of the land within the boundaries of the Assessment
District will be specially benefited by the Improvements a contingent assessment will be assessed at
the time of sub-division; and
WHEREAS, the Improvements are for the purpose of repairing, restoring, rebuilding,
rehabilitation or modernizing existing street and storm drain improvements and there are over 12
resident voters within the proposed boundaries of the Assessment District; and
WHEREAS, the Director of Public Works of the City has advised the Council that he has
determined that the Improvements are necessary for reasons of public safety and to avoid
substantially larger future costs due to deterioration and obsolescence of the existing roadway and
drainage facilities.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as follows:
Section 1. Whenever any public way is herein referred to as running between two public
ways, or from or to any public way, the intersection of the publiC ways referred to are included to the
extent that work shall be shown on the plans herein referred to.
Section 2. Said streets and highways are more particularly shown on the records in the
Office of the County Recorder of Riverside County, California and are shown upon the plans
referred to in the Engineer's Report described below,
Section 3. All of said work and improvements shall be acquired and constructed at the
places and in the particular locations, of the forms, sizes, dimensions and materials, and at the lines,
grades and elevations as shown and delineated upon the plans, profiles and specifications.
Section 4. There is to be excepted from the work herein described any of such work already
done to line and grade and marked "excepted" or shown "not to be done" on said plans, profiles and
specifications.
Section 5. Notice is hereby given of the fact that in many cases said work and
improvements will bring the finished work to a grade different from that formerly existing, and to that
extent work will be done to said changed grades.
Section 6. The Council does hereby intend to adopt and establish, as the official grades for
said work, the grades and elevations shown upon said plans, profiles and specifications upon
completion of the same. All such grades and elevations shall be in feet and decimals thereof, with
reference to the datum plane of the City.
Section 7. The description of the Improvements and the termini of the work contained in this
Resolution of Intention are general in nature. All items of work do not necessarily extend for the full
length of the description thereof. The plans and profiles of the work, and maps and descriptions to
be contained in the Engineer's Report shall be controlling as to the correct and detailed description
thereof.
Section 8. Said Improvements, in the opinion of the Council, are of more than local, general
or ordinary public benefit, and the costs and expenses thereof are made chargeable upon an
assessment district, the exterior boundaries of which district are the composite and consolidated
area as more particularly shown on a map labeled "Proposed Boundaries of Assessment District No.
03-04 (John Warner Road), City of Temecula, Riverside County, California," prepared by the
Engineer of Work and on file in the Office of the City Clerk, to which reference is hereby made for
further particulars. Said map indicates by a boundary line the extent of the territory included in the
proposed Assessment District and shall govern for all details as to the extent of the Assessment
District.
Section 9. The Council further declares that all public streets and highways within the
Assessment District in use in the performance of a public function as such shall be omitted from the
assessment hereafter to be made to cover the costs and expenses of the Improvements.
Section 10. Notice is hereby given that serial and/or term bonds to represent unpaid
assessments, and to bear interest at a rate not to exceed the maximum rate provided by law shall be
issued pursuant to the Bond Act, and that the applicable provisions of Part 11.1 of the Bond Act,
providing an alternative procedure for the advance payment of assessments and the calling of
bonds, may apply. The last installment of such bonds shall mature not to exceed thirty (30) years
from the second day of September next succeeding twelve (12) months from their date.
Section 11. Except as herein otherwise provided for the issuance of bonds, all of said
Improvements shall be done pursuant to the provisions of the Act.
Section 12. The Council finds and declares that a special reserve fund as provided in Part
16 of the Bond Act (commencing with Section 8880) shall be required, the amount thereof to be
fixed and determined upon the sale of bonds for the Assessment District.
Section 13. The Council hereby covenants with the owners of said assessment bonds to be
issued that it will commence and thereafter diligently prosecute to completion foreclosure actions
regarding delinquent installments of the assessments, as will be more fully specified in the resolution
of the Council authorizing the issuance of said assessment bonds.
Section 14. The Council declares that it is not the intention of the Council to levy
assessments to maintain, repair, or improve the acquisitions and improvements pursuant to Section
10100.8 of the California Streets and Highways Code in these proceedings. However, the Council
may initiate separate proceedings to establish a maintenance assessment district encompassing the
land in the Assessment District.
Section 15. The Council hereby acknowledges receipt of a letter from the Director of Public
Works, wherein the Director of Public Works has determined that the Improvements are necessary
for reasons of public safety and to avoid substantially larger future costs due to deterioration and
obsolescence of the public facilities involved. This Council finds and determines, based upon the
letter of the Director of Public Works and such other information as has been provided to it, that (a)
there are over 12 resident voters within the area proposed to be assessed in these proceedings; (b)
the Improvements are necessary for reasons of public safety and to avoid substantially larger future
costs due to deterioration and obsolescence of the public facilities involved; and (c) in light of the
foregoing, and pursuant to Section 2808.6 of the California Streets and Highways Code, Division 4
of the Streets and Highways Code does not apply to these proceedings.
Section 16. Said acquisitions and Improvements are hereby referred to the Director of
Public Works who is hereby appointed as the Engineer of Work for the Assessment District, and the
Director of Public Works is hereby directed to make and file, or cause to be made and filed, with the
City Clerk a report (the "Engineer's Report") in writing, presenting the following, as applicable:
(a) Plans and specifications of the proposed Improvements to be constructed
and installed. The plans and specifications need not be detailed and are sufficient if they
show or describe the general nature, location, and extent of the Improvements.
(b) A general description of works or appliances already installed, if any, and any
other property necessary or convenient for the operation of the Improvements, if the work,
appliance, or property is to be acquired as part of the Improvements.
(c) An estimate of the cost of the Improvements and incidental expenses in
connection with the Improvements, including any costs of registering bonds, and an estimate
of the amount of any proposed assessment to maintain, repair, or improve the
Improvements for each of the first five years during which the assessment would be levied.
(d) A diagram showing, as they existed at the time of the passage of this
Resolution, all of the following: (i) the exterior boundaries of the Assessment District; (ii) the
boundaries of any zones within the Assessment District; and (iii) the lines and dimensions of
each parcel of land within the Assessment District.
(e) A proposed assessment of the total amount of the cost and expenses of the
proposed Improvements upon the several subdivisions of land in the Assessment District in
proportion to the estimated special benefits to be received by each subdivision, respectively,
from the Improvements.
(f) A proposed maximum assessment upon each of the several subdivisions of
land in the Assessment District to pay costs incurred by the City and not otherwise
reimbursed which result from the administration and collection of assessments or from the
administration of any associated bonds and reserve or other related funds.
Section 17. If any excess shall be realized from the assessment it shall be used, in such
amounts as the Council may determine, in accordance with the provisions of law for one or more of
the following purposes:
(a) for transfer to the general fund of the City, provided that the amount of any
such transfer shall not exceed the lesser of $1,000 or five percent (5%) of the total amount
expended from the Assessment District improvement fund;
(b) as a credit upon the assessment and any supplemental assessment in
accordance with the provisions of Section 10427.1 of the California Streets and Highways
Code;
(c) for the maintenance of the Improvements or a specified part thereof; or
(d) to call bonds, thereby reducing outstanding assessments and subsequent
assessment installments. In the event that the Council determines to use all or some portion
of the surplus to call bonds prior to maturity, the City shall do each of the following:
(1) Cause the special reserve fund, if any, to be reduced as necessary
pursuant to Section 8887 of the California Streets and Highways Code to assure that
the bonds will not become subject to federal income taxation.
(2) Cause any assessment previously paid in cash to receive a credit in cash
pursuant to subdivision (b) of Section 10427.1 of the California Streets and
Highways Code for the proportionate share of the surplus as determined pursuant to
subdivision (a) of Section 10427.1 of the California Streets and Highways Code.
(3) Cause the preparation of new auditor's records to reflect the adjusted
principal amount of the remaining assessments. All subsequent assessment
installments shall be based upon the adjusted principal amount of the assessments
as reflected in the revised auditor's record.
Section 18. Notice is further given that the City will not obligate itself to advance available
funds from the City general fund to cure any deficiency which may occur in the bond redemption
fund; provided, however, that the Council does not hereby preclude itself from so advancing such
funds if, in its sole discretion, it so determines.
Section 19. It is further determined pursuant to California Streets and Highways Code
Section 8571.5, that the bonds may be refunded in the manner provided by Division 11.5 of the
California Streets and Highways Code if the Council determines that it is in the public interest or
otherwise necessary or appropriate to do so.
Section 20. Notice is hereby given that in the opinion of the Council, the areas contained
within the proposed Assessment District are the properties which will be specially benefited by the
Improvements and the issuance of bonds, and that the public interest and convenience require, and
that it is the intention of the Council that administrative expenses shall be added to each annual
installment of the unpaid assessments to pay costs incurred by the City and not otherwise
reimbursed, which result from the administration of the bonds and reserve or other related funds, all
as set forth in Section 10312 of the Act.
Section 21. Notice is hereby given that pursuant to Section 8682.1 of the Bond Act, in
addition to or as a part of the assessment lien levied against each parcel of land within the
Assessment District, each parcel of land shall also be subject to an annual assessment to pay costs
incurred by the City which result from the expenses of (i) registration of any bonds and (ii)
compliance with federal arbitrage laws. The amounts collected will be based on actual administrative
expenses or projected administrative expenses, and no maximum need be stated in the Engineer's
Report. If the City performs any transfer, registration, authentication, payment or other related
registration function, the City may be reimbursed for its actual expenses, including a pro rata amount
of the salaries of the City employees involved in the performance of these functions. In addition, no
public hearing shall be required prior to their levy. These costs are to be distinguished from the costs
of reimbursing the City for non-registration administrative expenses, described in paragraph 20
above, for which an annual estimate will be provided in the Engineer's Report.
Section 22. Pursuant to Section 20487 of the California Public Contract Code, in the
opinion of the Council, the public interest will not be served by allowing owners of property in the
proposed Assessment District to take a contract for the performance of any of the work of the
Improvements herein referenced, so that no notice of award of contract shall be published.
Section 23. It is hereby acknowledged that, for all purposes of the Act and the Bond Act,
the Director of Public Works is the Superintendent of Streets for the City.
Section 24. This Resolution shall take effect from and after the date of its passage and
adoption.
PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula at a
meeting held on the 24'h day of June, 2003.
Jeffrey E. Stone, Mayor
ATTEST:
Susan W. Jones, CMC City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, CMC City Clerk of the City of Temecula, do hereby certify that Resolution No.
was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting
thereof held on the 24'h day of June, 2003, by the following vote:
AYES:
o
COUNCILMEMBERS:
NOES:
o
COUNCILMEMBERS:
COUNCILMEMBERS:
ABSENT:
o
Susan W. Jones, CMC City Clerk
EXHIBIT A
DESCRIPTION OF WORK
Street Improvements; including the construction of John Warner Road, Lolita Road, Paulita Road,
Colver Court and La Presa Loop. Full width improvements to include, but not be limited to: grading,
asphalt berm, asphalt pavement, signage and striping and any other appurtenant improvements
necessary to complete John Warner Road, Lolita Road, Paulita Road, Colver Court and La Presa
Loop.
Storm Drain Improvements; including, but not limited to: reinforced concrete pipe (RCP) crossings at
Paulita Road and John Warner Road, a permanent detention basin, an RCP storm drain system
along John Warner Road terminating approximately 210 feet south of the intersection of John
Warner Road and Cabrillo Road, an outlet structure to include rock slope protection and any other
appurtenant improvements necessary to complete the above-described storm drain improvements.
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA OF PRELIMINARY APPROVAL OF
ENGINEER'S REPORT, DESCRIBING BOUNDARIES OF
PROPOSED ASSESSMENT DISTRICT AND CALLING FOR
PUBLIC MEETING AND HEARING, AND ELECTION -
ASSESSMENT DISTRICT NO. 03-04 (JOHN WARNER ROAD)
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER
AS FOLLOWS:
WHEREAS, the City Council (the "Council") of the City of Temecula (the "City") has on this
date adopted a resolution of intention (the "Resolution of Intention") to acquire and construct
improvements in the City (hereinafter, the "Improvements") in accordance with proceedings for the
City of Temecula Assessment District No. 03-04 (John Warner Road) (the "Assessment District"),
and did refer the proposed Improvements to the Director of Public Works of the City, as the
Engineer of Work for the Assessment District, and did therein direct said Engineer of Work to cause
to be made and filed with the City Clerk a report in writing (hereinafter, the "Report") all as therein
more particularly described, under and pursuant to the Municipal Improvement Act of 1913, as
amended (the "Act"); and .
WHEREAS, the Engineer of Work has caused to be made and filed with the City Clerk the
Report as called for in the Resolution of Intention and under and pursuant to the Act, which Report
has been presented to this Council for consideration; and
WHEREAS, this Council has duly considered the Report and each and every part thereof,
and finds that each and every part of the Report is sufficient, and that the Report should not be
modified in any respect.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as
follows:
Section 1. That the general description of the proposed Improvements contained in the
Report be, and hereby is preliminarily approved and confirmed.
Section 2. That the general description of works or appliances already installed and any
other property necessary or convenient for the operation of the Improvements, if the work,
appliance, or property is to be acquired as part of the Improvements, as contained in the Report be,
and hereby is preliminarily approved and confirmed.
Section 3. That the estimate of the costs of the Improvements and incidental expenses
in connection with the Improvements ordered, as contained in the Report be, and hereby is
preliminarily approved and confirmed.
Section 4. That the total cost of the Improvements, as contained in the Report be, and
hereby is preliminarily approved and confirmed.
Section 5. That the diagram showing the Assessment District and the boundaries and
dimensions of the subdivisions of land within the Assessment District as they existed at the time of
the passage of the Resolution of Intention, as contained in the Report be, and hereby is preliminarily
approved and confirmed.
Section 6. That the proposed assessment of the cost and expense of the proposed
Improvements upon each subdivision of real property in the Assessment District in proportion to the
estimated special benefits to be received by those subdivisions, respectively, from the
Improvements, as contained in the Report be, and hereby is preliminarily approved and confirmed.
Section 7. That the proposed maximum annual assessment upon each of the several
subdivisions of land in the Assessment District to pay costs incurred by the City and not otherwise
reimbursed which result from the administration of any bonds and reserve or other related funds, as
contained in the Report be, and hereby is preliminarily approved and confirmed.
Section 8. That the Report shall stand as the Engineer's Report for the purpose of all
subsequent proceedings had pursuant to the Resolution of Intention.
Section 9. The proposed boundaries of the Assessment District containing the property
proposed to be assessed in these proceedings, are hereby described as shown on a map of said
Assessment District on file in the office of the City Clerk entitled "Proposed Boundaries of
Assessment District No. 03-04 (John Wamer Road), City ofTemecula, Riverside County, California,"
which indicates by a boundary line the extent of the territory included in the proposed Assessment
District and which shall govern for all details as to the extent of such Assessment District, reference
to such map being hereby made for particulars. Said map is hereby approved.
On the original and at least one copy of said map the City Clerk is hereby directed to endorse
her certificate evidencing the date and adoption of this Resolution. The City Clerk shall file the
original of the map in her office immediately following adoption of this Resolution and shall file the
copy of such map with the County Recorder of the County of Riverside. The appropriate officer or
officers of the City are hereby authorized to pay any and all fees required by law in connection with
the foregoing.
Section 10. A public meeting and public hearing on the proposed Assessment District
shall be held by this City Council in the City Council Chambers on August 12, 2003. The City Clerk
is hereby directed to provide notice of the public meeting and public hearing as required by
applicable law.
Section 11. An election shall be held of the landowners within the proposed Assessment
District as required by Article XIII D of the California Constitution, with the ballots tabulated by the
City Clerk at the conclusion of the public hearing referred to in Section 10 above as required by
Section 53753 of the California Government Code. The ballot shall be in the form of Exhibit A
hereto, and the City Clerk is hereby directed to cause a ballot in such form to be delivered to the
owners of all of the property in the proposed Assessment District.
Section 12. This Resolution shall take effect from and after the date of its passage and
adoption.
PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula at a
regular meeting held on the 24'h day of June, 2003.
Jeffrey E. Stone, Mayor
ATTEST:
Susan W. Jones, CMC City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, CMC City Clerk of the City of Temecula, California, do hereby certify that
Resolution No. 03-_ was duly and regularly adopted by the City Council of the City of Temecula at
a regular meeting thereof held on the 24'h day of June, 2003, by the following vote:
AYES:
o
COUNCILMEMBERS:
NOES:
ABSENT:
o
COUNCILMEMBERS:
o
COUNCILMEMBERS:
Susan W. Jones, CMC City Clerk
EXHIBIT A
FORM OF ASSESSMENT BALLOT
CITY OF TEMECULA
JOHN WARNER ROAD ASSESSMENT DISTRICT
This assessment ballot is for the use of the property owner of the property identified below by its
Riverside County Assessor's Parcel Number within the John Wamer Road Assessment District, City
of Temecula, County of Riverside, California.
In order to be counted, this ballot must be signed by the owner or owners whose name(s) and
address appear on the last equalized secured property tax assessment roll or is otherwise the fee
title owner of such land, or, if the owner is not an individual, by an authorized representative of the
owner. In the case of any public entity, the State of California or the United States, this ballot must
be signed by the representative of that public entity. This ballot must be returned either by mail or in
person, at the public meeting and hearing scheduled for 7:00 p.m. on August 12, 2003, at the
following address:
City ofTemecula
City Council Chambers
43200 Business Park Drive
Temecula, California 92590
Attention: City Clerk
Mailing by that date will not be sufficient. The ballot must be physically received by the City Clerk
prior to the deadline in order to be counted.
Ballots will be tabulated after completion of the public meeting and hearing on the proposed
assessment district. Ballots will be weighted according to the respective amounts of the individual
assessments.
If the amount of the assessments represented by "NO" votes is greater than the amount of the
assessments represented by "YES" votes, the assessments will not be levied.
Owner's Name:
Assessment Parcel Diagram Nos.:
County Assessor's Parcel Nos.:
MARK WITH AN "X" OR OTHER MARK.
ASSESSMENT BALLOT MEASURE
Shall the City Council of the City of Temecula establish the
proposed assessment district and levy special assessments in the YES
amounts (or less) and for the purposes stated in the Engineer's
Report for the John Warner Road Assessment District, City of NO
Temecula, County of Riverside, California.
Dated:
,2003
[insert landowner name]
By:
Title:
ATTACHMENT NO.3
PETITION
Honorable Mayor and Members of the City Council
City of Temecula
43200 Business Park Drive
Temecula, California 92590
Re: Petition Requesting the Initiation of Proceedings to Consider the Formation of an
Assessment District to Finance the Costs of Street and Storm Drain
Improvements - Proposed John Warner Assessment District
Mayor and Members of the City Council:
We are the owners (the "Owners") of the respective properties located in the City of
Temecula (the "City") which are identified adjacent to our signatures below.
The Owners respectfully petition the City Council of the City (the "City Council") to
initiate proceedings pursuant to the Municipal Improvement Act of 1913 (California Streets and
Highways Code Section 10000 and following) to consider the formation of an assessment
district for the purpose of financing the costs of the improvements generally described in
Exhibit A hereto (the "Improvements"). The properties proposed to be included within the
boundaries of assessment district are shown on the map included in Exhibit B hereto.
We understand that if an assessment district is formed the costs of the Improvements
will be assessed against those properties that will receive special benefit from the
Improvements. We understand that the current estimate of the total cost for the Improvements,
including costs of design, engineering, and other incidental costs is (a) $1,041,000 for street and
storm drain improvements of benefit to parcel numbers 1 through 33 as shown on the map in
Exhibit B, and (b) $82,000 for storm drain improvements of benefit to parcel numbers 34, 35 and
36 as shown on the map in Exhibit B. We further understand that the current estimate of the
assessment to be levied on each of the parcels listed as 1 through 33 on the map in Exhibit B is
$36,972.50 and the current estimate of the assessment to be levied on each of the parcels listed as
34, 35 and 36 on the map in Exhibit B is $32,035.73. We understand that the final construction
costs and assessments for the parcels may be more or less than these amounts, as the City
obtains more information regarding certain costs and bids are taken on the works of
improvement.
In addition, we understand that the annual costs of administering the assessment district
and of the debt service on the bonds to be issued by the City for the assessment district to
finance the Improvements will be separately assessed against those properties that will receive
a special benefit from the Improvements.
We further understand that if the City Council elects to initiate the proceedings to
consider the formation of an assessment district as we have petitioned:
1. The fee title owners of the properties proposed to be assessed (based on
Riverside County's ownership records) will receive notice of a public hearing to be held
by the City Council. At such public hearing any interested person may present written
or oral testimony and the City Council will consider all objections or protests to the
proposed assessment.
20002.05,)6800
2. The fee title owners of the properties proposed to be assessed will also
receive an assessment ballot by which such record owners may express their support for
or opposition to the proposed assessment.
3. All assessment ballots received by the City prior to the conclusion of the
public hearing will be tabulated following the conclusion of the public hearing. The City
Council will have the authority to form the assessment district and levy the proposed
assessments only if the assessment ballots submitted in favor of the levy of the proposed
assessments exceed the assessment ballots submitted in opposition to such levy. In
tabulating the assessment ballots, the assessment ballot for each parcel will be weighted
by the amount of the assessment proposed to be levied on the respective parcel.
In submitting this petition we understand that we are not waiving our right: (a) to testify
orally or in writing at the public hearing described above, (b) to object to or protest the levy of
the assessments at the public hearing if we do not agree with the amount of the assessment
proposed to be levied on our property, or (c) to submit an assessment ballot in opposition to the
levy of the proposed assessment on our property if we do not agree with the amount of the
proposed assessment or the assessment district generally.
This petition is respectfully submitted by:
Name of Property
Owner(s) Signature of Street Address or
Date Siroed (orinted or tvDed) Prooertv Owner(s) Assessor's Parcel No.
Alder, Barbara 945-180-003-6
Alder, Barbara 945-180-004-7
Altshuler, Jeffery 945-140-005-4
Castillo, Phillip & Blanca 945-120-008-5
Collins, Cindy 945-180-009-2
-2-
fp_l{-O'J
,- //-03
-1(. o~
1.;,-("(-03
6~IJ~
Dods, Stephen
Dominguez, Robert &
Carol
Eves, Joseph
Fast, Larry & Patricia
Gromrnisch, Robert &
Mary
Gromrnisch, Robert &
Mary
Gunderson, Charles &
Christina
Signature of
Pro er Owner(s)
"
~
Street Address or
Assessor's Parcel No.
945-180-016-8
945-140-008-7
945-120-011-7
945-180-007-0
945-120-010-6
cZ..~~~e-./2., 945-120-013-9
0.. 945-180-006-9
~d?
-3-
922-140-014-5
-'I/o 3
6-//-03
Long, Timothy &
Patricia
Machine Craft of SD
Machine Craft of SD
Maclean, Douglas &
Nancy
McManama, David W.
Norman, Bonnie
-4-
Street Address or
Assessor's Parcel No.
945-180-002-5
945-180-014-6
945-120-006-3
945-140-006-5
945-140-007-6
945-120-012-8
945-180-010-2
945-140-002-1
6/;1/{8
~//I/ 03
Orum, Daniel & Jayne
Reynolds, Jim & Susan
Richardson, John &
Vickie
Simonetti, Sal
Smith, Kenneth
Stowe, Donald &
Kathleen
Strom, Timothy &
Denise
Signature of
Pro er Owner(s)
1Uv~
o
~D~
-5-
Street Address or
Assessor's Parcel No.
945-180-013-5
945-180-001-4
945-140-011-9
945-140-004-3
945-120-007-4
945-180-012-4
922-150-025-6
945-180-011-3
Name of Property
Owner(s) Signature of Street Address or
Date Signed (printed or typed) Property Owner(s) Assessor's Parcel No.
Tiritilli, John S. 922-140-007-9
Turner, David & Barbara 945-180-008-1
/
6j/fp3 Valdes, Manuel & Karen A'l.4., / 1/4 945-140-012-0
"iviA
Verano, Jose 945-120-009-6
Vierra, Leonard 945-140-010-8
Wunsch, Paul & G. 945-140-001-0
Yoon, Hyo & Jackie 945-140-003-2
-6-
or oral testimony and the City Council will consider all objections or protests to the
proposed assessment.
2. The fee title owners of the properties proposed to be assessed will also
receive an assessment ballot by which such record owners may express their support for
or opposition to the proposed assessment.
3. All assessment ballots received by the City prior to the conclusion of the
public hearing will be tabulated following the conclusion of the public hearing. The City
Council will have the authority to form the assessment district and levy the proposed
assessments only if the assessment ballots submitted in favor of the levy of the proposed
assessments exceed the assessment ballots submitted in opposition to such levy. In
tabulating the assessment ballots, the assessment ballot for each parcel will be weighted
by the amount of the assessment proposed to be levied on the respective parcel.
In submitting this petition we understand that we are not waiving our right: (a) to testify
orally or in writing at the public hearing described above, (b) to object to or protest the levy of
the assessments at the public hearing if we do not agree with the amount of the assessment
proposed to be levied on our property, or (c) to submit an assessment ballot in opposition to the
levy of the proposed assessment on our property if we do not agree with the amount of the
proposed assessment or the assessment district generally.
This petition is respectfully submitted by:
Street Address or
Assessor's Parcel No.
.L/JOoUJ :01t 0\. tJ".." "l
L/~ ~ '"J3.iu.t tJ(fo.ll~'"
RECEIVED
JUN 1 7 2003
-2-
CITY OF TEMECULA
E INE NO PEPARTMENT
or oral testimony and the City Council will consider all objections or protests to the
proposed assessment.
2. The fee title owners of the properties proposed to be assessed will also
receive an assessment ballot by which such record owners may express their support for
or opposition to the proposed assessment.
3. All assessment ballots received by the City prior to the conclusion of the
public hearing will be tabulated following the conclusion of the public hearing. The City
Council will have the authority to form the assessment district and levy the proposed
assessments only if the assessment ballots submitted in favor of the levy of the proposed
assessments exceed the assessment ballots submitted in opposition to such levy. In
tabulating the assessment ballots, the assessment ballot for each parcel will be weighted
by the amount of the assessment proposed to be levied on the respective parcel.
In submitting this petition we understand that we are not waiving our right: (a) to testify
orally or in writing at the public hearing described above, (b) to object to or protest the levy of
the assessments at the public hearing if we do not agree with the amount of the assessment
proposed to be levied on our property, or (c) to submit an assessment ballot in opposition to the
levy of the proposed assessment on our property if we do not agree with the amount of the
proposed assessment or the assessment district generally.
1his petition is respectfully submitted by:
Signature of
Pro e
Street Address or
Assessor's Parcel No.
)0615 )..o?171/
Itflf1ect/~1'l q~?92.
'14 -S -1'io-oo7- 0
RECEIVED
JUN 1 7 2003
-2-
CllY OF TEMECULA
E INE RING DEPARTMENT
or oral testimony and the City Council will consider all objections or protests to the
proposed assessment.
2. The fee title owners of the properties proposed to be assessed will also
receive an assessment ballot by which such record owners may express their support for
or opposition to the proposed assessment.
3. All assessment ballots received by the City prior to the conclusion of the
public hearing will be tabulated following the conclusion of the public hearing. The City
Council will have the authority to form the assessment district and levy the proposed
assessments only if the assessment ballots submitted in favor of the levy of the proposed
assessments exceed the assessment ballots submitted in opposition to such levy. In
tabulating the assessment ballots, the assessment ballot for each parcel will be weighted
by the amount of the assessment proposed to be levied on the respective parcel.
In submitting this petition we understand that we are not waiving our right: (a) to testify
orally or in writing at the public hearing described above, (b) to object to or protest the levy of
the assessments at the public hearing if we do not agree with the amount of the assessment
proposed to be levied on our property, or (c) to submit an assessment ballot in opposition to the
levy of the proposed assessment on our property if we do not agree with the amollflt of the
proposed assessment or the assessment district generally.
This petition is respectfully submitted by:
Signature of
Pro e Owner(s)
Street Address or
Assessor's Parcel No.
lf2/I(p ! 03
Am lJ L. [):)ds
t C.
3:ff2il (j)1/tfL
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rdflKiJ a
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RECEIVED
JUN 1 7 2003
-2-
CITY OF TEMECULA
EN INE ING PEPARTMENT
EXHIBIT A
DESCRIPTION OF IMPROVEMENTS TO BE FINANCED BY THE ASSESSMENT DISTRICT
Street Improvements; including the construction of John Warner Road, Lolita Road,
Paulita Road, Colver Court and La Presa Loop. Full width improvements to include, but not be
limited to: grading, asphalt berm, asphalt pavement, signage and striping and any other
appurtenant improvements necessary to complete John Warner Road, Lolita Road, Paulita
Road, Colver Court and La Presa Loop.
Storm Drain Improvements; including, but not limited to: reinforced concrete pipe
(RCP) crossings at Paulita Road and John Warner Road, a permanent detention basin, an RCP
storm drain system along John Warner Road terminating approximately 210 feet south of the
intersection of John Warner Road and Cabrillo Road, an outlet structure to include rock slope
protection and any other appurtenant improvements necessary to complete the above-described
storm drain improvements.
A-I
EXHIBIT B
MAP INDICATING PROPOSED BOUNDARIES OF THE ASSESSMENT DISTRICT
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ATTACHMENT NO.4
CITY ENGINEER LETTER
City of Temecula
Public Works Department
43200 Business Park DnveoTemecula, CA 925900Malllng Address: PO. Box 9033oTemecula, CA 92589-9033
(909) 694-641 1 0 Fax 1909) 694-6475
June 24, 2003
Honorable Mayor and Councilmembers
City of Temecula
43200 Business Park Drive
Temecula, California 92590
Re: Proposed Citv of Temecula Assessment District No. 03-04 (John Warner Road)
Mayor and Council members:
I have reviewed the condition of the streets and storm drains in the area of John Warner Road,
Lolita Road, Paulita Road, Colver Court and La Presa Loop. I have also reviewed the
description of the improvements to those roads and storm drains (the "Improvements") that may
be funded by the proposed City of Temecula Assessment District No. 03-04 (John Warner
Road) (the "Assessment District"), and have prepared a Preliminary Engineer's Report for the
Assessment District.
Based upon my review and the information made available to me in connection with the
preparation of the Preliminary Engineer's Report, I have determined that the Improvements are
necessary for reasons of public safety and to avoid substantially larger future costs due to
deterioration and obsolescence of the existing streets and storm drains. Also, my Staff has
confirmed with the County Registrar of Voters that there are over 12 resident voters within the
area of the proposed Assessment District.
Sincerely, J I
.~ _/0--
William G. Hughes,
Director of Public Works/City Engineer,
City of Temecula
(!)printedonRecycledPaper
CiplprojectslpW02-07\letterslform assm! dis! I"
ATTACHMENT NO.5
PRELIMINARY ENGINEER'S REPORT
PRELIMINARY ENGINEER'S REPORT
FOR
ASSESSMENT DISTRICT NO. 03-04
(JOHN WARNER ROAD)
CITY OF TEMECULA
RIVERSIDE COUNTY, CALIFORNIA
Prepared By:
City of Temecula
Public Works Department
43200 Business Park Drive
P.O. Box 9033
Temecula, California 92589-9033
June 24, 2003
CITY OF TEMECULA
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
ASSESSMENT DISTRICT NO. 03-04 (JOHN WARNER ROAD)
PRELIMINARY ENGINEER'S REPORT
TABLE OF CONTENTS
PAGE
INTRODUCTION AND CERTIFICATION ............................................................................... i
PART 1 Plans and Specifications ...............................................................................1
PART 2 Cost Estimate.................................................................................................1
Table 1 - Detailed Project Cost Estimate .................................................1
PART 3 Assessment Roll and Method of Assessment Spread ....................................3
Table 2 - Project Cost Summary...............................................................5
Exhibit 1, Assessment RolI.......................................................................6
Exhibit 2, Method and Formula of Assessment Spread ............................7
Table 3 - Benefit Spread........................................................................ 10
PART 4 Boundary Map and Diagram of District.........................................................13
PART 5 Description of Facilities ................................................................................13
PART 6 Annual Administrative Levies .......................................................................16
PART 7 Subdivision Criteria ......................................................................................16
APPENDIX A Resolution of Intention
APPENDIX B Property Owners List
APPENDIX C Environmental Certification
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page;
AGENCY: CITY OF TEMECULA
PROJECT: ASSESSMENT DISTRICT NO. 03-04 (JOHN WARNER ROAD)
TO: CITY COUNCIL
PRELIMINARY ENGINEER'S REPORT
PURSUANT TO THE PROVISIONS OF SECTION 10204
OF THE
STREET AND HIGHWAY CODE
I, William G. Hughes, P.E., Director of Public Works/City Engineer of the City of
Temecula, am the duly appointed Engineer of Record and submit to the City Council the
Engineer's Report for Assessment District No. 03-046 (John Warner Road) (hereinafter
referred to as the "Assessment District"). Said Engineer's Report is pursuant to the
provisions of Section 10204 of the Street and Highway Code, being Division 12 of the
Municipal Improvement Act of 1913 (the "1913 Act") and the Resolution of Intention No.
, adopted by City Council of the City of Temecula, County of Riverside,
State of California in association with the proceedings for the Assessment District. Said
Engineer's Report consists of seven (7) parts, as itemized and described below.
PART 1
Plans and Specifications: The Plans and Specifications are included in this part. They
do not necessarily need to be detailed, but they should include the general nature,
location and extent of the proposed improvements. Said Plans and Specifications have
been prepared as a separate document and are on file in the Office of the City Engineer
in the City of Temecula.
PART 2
Cost Estimate: An estimate of the cost is included in this part. Said estimate should
include the cost for all the proposed improvements, lands, right-of-way, easements, if
applicable and other incidental expenses costs and expenses associated with the
formation of the assessment district such as design/construction administrative costs,
formation costs, etc.
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page;;
PART 3
Assessment Roll and Method of Assessment Spread: The Assessment Roll and
Method of Assessment Spread is included in this part. Per section 10204 (e) of the
1913 Act, this part includes "the proposed assessment of the total amount of the cost
and expenses of the proposed improvements upon the several subdivisions of land
within the Assessment District, in proportion to the estimated benefits to be received by
each subdivision, respectively, from the improvement.
PART 4
Boundary Map and Diaqram of Assessment District: The boundary map and diagram of
the Assessment District is included in this part. Said items should be shown, as they
existed at the time the Resolution of Intention was passed and should also show the
exterior boundaries of the assessment district and the lines and dimensions of each
parcel of land included within the District.
PART 5
Description of Facilities: The description of facilities is included in this part. The
facilities should be listed, as allowed under the 1913 Act.
PART 6
Annual Administrative Levies: A description of the annual administrative levies is
included in this part. Notice is given that it is the City's intention to levy assessments in
addition to the assessments for the improvements.
PART 7
Subdivision Criteria: The subdivision criteria are included in this part. Any future
subdivision of parcels shall follow the noted criteria.
This report submitted this 24'h day of June 2003.
William G. Hughes, P.E.
Engineer of Work
City of Temecula
State of California
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 1
PART 1
Plans and Specifications
The plans and specifications to construct the street and storm drain improvements for
the Assessment District are on file in the Office of the City Engineer in the City of
Temecula.
PART 2
Cost Estimate
Tables No. 1 and 1A below summarize the cost estimate for the construction and
financing of the street and storm drain improvements for the Assessment District.
TABLE NO.1 - Detailed Project Cost Estimate
(Street/Storm Drain Improvements)
Description Preliminary Confirmed
Costs Costs
Street & Related Storm Drain ImD./Zone 1\
11 \ Clearinq and Grubbinq $ 20,000
(2) Unclassified Excavation for: John Warner Road, $ 108,700
Lolita Road, Paulita Road, La Presa Loop and
Colver Court
(3) Unclassified Fill for: John Warner Road, Lolita $ 43,000
Road, Paulita Road, La Presa Loop and Colver
Court
(4) NPDES Compliance $ 20,000
(5) AC Pavement for: John Warner Road, Lolita $127,500
Road, Paulita Road, La Presa Loop and Colver
Court
(6) Crushed Aggregate Base for: John Warner $152,640
Road, Lolita Road, Paulita Road, La Presa Loop
and Colver Court
(7) Sloping AC Dike for: John Warner Road, Lolita $ 44,880
Road, Paulita Road, La Presa Loop and Colver
Court
I8f Concrete Driveway $ 23,310
19\ Set Survev Monuments $ 2,400
(1m Sianaae and Strioina $ 5,700
(11\ 42-inch RCP (0-1500) $ 69,600
(12) 36-inch RCP (0-1500) $ 79,940
. 113\ 18-inch RCP (D-1500) $ 4,200
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 2
Description Preliminary Confirmed
Costs Costs
114 14' Catch Basin $ 14,000
115 21' Catch Basin $ 18,000
16 Manholes $ 5,000
17 y" Ton Rock Slooe Protection $ 23,000
18 Headwall for 42-inch RCP $ 5,000
19 Cutoff Wall $ 3,250
20 36-inch Flared End Section $ 800
21 Desiltina Basin $ 30.000
Estimate Subtotal for Zone 1 Improvements $800,920
10% Mobilization/Traffic Control $ 80,092
20% Continaency $160.184
Estimate Total Zone 1 Improvement $1,041,196
Storm Drain Imnroyements IZone 2\:
(f) 42-inch RCP 0-1500 $ 72,540
(2) 48-inch RCP D-2000 $ 41 ,850
(3\ Manhole $ 6,620
(4\ y" Ton Rock Slope Protection $ 3,720
(5\ Cutoff Wall $ 2,500
(6\ 42-inch Flared End Section $ 1.000
Estimate Subtotal Zone 2 Imorovements $ 128,230
Less City Contribution ($65 000)
Subtotal $ 63,230
10% Mobilization/Traffic Control $ 6,323
20% Continaencv $12,646
Estimate Total Zone 2 Improvements $ 82,199
Formation Costs:
(1\ Bond Counsel $ 25,000
(2) Underwriter $ 30,000
(:3) Pavina Aaent $ 1,000
(4) Bond Reserve Fund $132,500
(5) Disclosure Counsel $ 15,000
(6) Printina $ 6.000
Formation Cost Subtotal: $ 209,500
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 3
TABLE NO.1 A - Additional Project Costs
(Street/Storm Drain Improvements)
NOT ASSESSED TO PROPERTIES
Citv Contribution: (Not Assessed to Properties)
1 Administration $28,545
2 Inspection $28,545
3) In-House Design $65,000
4) Consultants:
Hvdrology/Hydraulic Report/SD Design $69,155
Soils Engineer $ 8,400
Rioht-of-Way legals, storm drain easements $ 14,655
Citv Contribution Subtotal: $214,300
PART 3
Assessment Roll and Method of Assessment Spread
WHEREAS, on June 24, 2003, the City Council of the CITY OF TEMECULA, State of
California, did, pursuant to the provisions of the 1913 Act, the "Municipal Improvement
Act of 1913", being Division 12 of the Streets and Highways Code, of the State of
California, adopt its Resolution of Intention No. 03-_, for the installation, construction
and acquisition of certain public improvements, together with appurtenances and
appurtenant work in connection therewith, in a special assessment district known and
designated as
ASSESSMENT DISTRICT NO. 03-04 (JOHN WARNER ROAD)
(hereinafter referred to as the "Assessment District"); and
WHEREAS, said Resolution of Intention, as required by law, did direct the Engineer of
Work to make and file a "Report", which shall consists of the following as required by
Section 10204 of the Act:
a. Plans
b. Specifications
c. Cost Estimates
d. Assessment Diagram showing the Assessment District and the subdivisions of
land therein
e. A proposed assessment of the costs and expenses of the works of improvement
levied upon the parcels within the boundaries of the Assessment District and
f. The proposed maximum annual assessment to be levied upon each subdivision
or parcel of land within the Assessment District to pay the costs incurred by the
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 4
City and not otherwise reimbursed resulting from the administration and
collection of assessments or from the administration and registration of any
associated bonds and reserve or other related funds.
For particulars, reference is made to the Resolution of Intention as previously adopted.
NOW, THEREFORE, I, William G. Hughes, the authorized representative of the City of
Temecula, pursuant to Article XIIID of the California Constitution and the "Municipal
Improvement Act of 1913", do hereby submit the following:
1. Pursuant to the provisions of law and the Resolution of Intention, I have
assessed the costs and expenses of the works of improvement to be performed
in the Assessment District upon the parcels of land in the Assessment District
specially benefited thereby in direct proportion and relation to the estimated
special benefits to be received by each of said parcels. For particulars as to the
identification of said parcels, reference is made to the Assessment District's
Diagram, a copy of which is attached hereto.
2. As required by law, a Diagram of the Assessment District is attached, showing
the Assessment District boundaries, as well as the boundaries and dimensions of
the respective parcels and subdivisions of land within said Assessment District
as they existed at the time of the passage of said Resolution of Intention. Each of
the parcels has been given a separate assessment number upon said Diagram
and in said Assessment Roll.
3. The subdivisions and parcels of land, the numbers therein as shown on the
respective Diagram as attached hereto, correspond with the numbers as they
appear on the Assessment Roll as contained herein.
4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with
Division 10 of the Streets and Highways Code of the State of California (the
"Improvement Bond Act of 1915"), to represent all unpaid assessments, which
bonds shall be issued not to exceed the legal maximum term as authorized by
law, TWENTY (20) YEARS from the 2nd day of September next succeeding
twelve (12) months from their date. Said bonds shall bear interest at a rate not to
exceed the current maximum rate permitted by law at the time of sale of such
bonds.
5. By virtue of the authority contained in said "Municipal Improvement Act of 1913"
and by further direction and order of the legislative body, I hereby recommend
the following assessment to cover the costs and expenses of the works of
improvement for the Assessment District based on the costs and expenses, as
setforth below in Table 2:
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 5
Table No.2 - Project Cost Summary
ITEM DESCRIPTION
PRELIMINARY CONFIRMED
COSTS COSTS
$ 209,500
$1,041,196
$ 82,199
Estimated Formation Costs:
Estimated Total To Assess:
$ 1,332,895
For particulars as to the individual assessments and their descriptions, please
refer to Exhibit I attached hereto.
6. The Method and Formula of Assessment Spread is as set forth in Exhibit "2",
which is attached hereto, referenced and so incorporated.
Dated:
CITY OF TEMECULA
William G. Hughes, P.E.
R.C.E. No. 36617
Dir. of PW, City Engineer/Assessment Engineer
Riverside County, State of California
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 6
PART 3 . EXHIBIT 1
ASSESSMENT ROLL
ASSESS. ASSESSOR PRELIM. AS
PARCEL PARCEL PRELIM. FORMATION AS PRELIM. CONFIRMED
NO. NUMBERS (APN) CONSTR. COSTS COSTS APPROVED &
RECORDED
1 945-120-010-6 $31,551.39 $5,883.97 $37,435.36
2 945-120-009-6 $31,551.39 $5,883.97 $37,435.36
3 945-120-008-5 $31,551.39 $5,883.97 $37,435.36
4 945-120-007-4 $31,551.39 $5,883.97 $37,435.36
5 945-120-011-7 $31,551.39 $5,883.97 $37,435.36
6 945-120-006-3 $31,551.39 $5,883.97 $37,435.36
7 945-120-012-8 $31,551.39 $5,883.97 $37,435.36
8 945-120-013-9 $31,551.39 $5,883.97 $37,435.36
9 945-140-012-0 $31,551.39 $5,883.97 $37,435.36
10 945-140-010-8 $31,551.39 $5,883.97 $37,435.36
11 945-140-004-3 $31,551.39 $5,883.97 $37,435.36
12 945-140-005-4 $31,551.39 $5,883.97 $37,435.36
13 945-140-006-5 $31,551.39 $5,883.97 $37,435.36
14 945-140-007-6 $31,551.39 $5,883.97 $37,435.36
15 945-140-008-7 $31,551.39 $5,883.97 $37,435.36
16 945-180-016-8 $31,551.39 $5,883.97 $37,435.36
17 945-180-014-6 $31,551.39 $5,883.97 $37,435.36
18 945-180-002-5 $31,551.39 $5,883.97 $37,435.36
19 945-180-001-4 $31,551.39 $5,883.97 $37,435.36
20 945-180-003-6 $31,551.39 $5,883.97 $37,435.36
21 945-180-004-7 $31,551.39 $5,883.97 $37,435.36
22 945-180-006-9 $31,551.39 $5,883.97 $37,435.36
23 945-180-012-4 $31,551.39 $5,883.97 $37,435.36
24 945-180-011-3 $31,551.39 $5,883.97 $37,435.36
25 945-180-009-2 $31,551.39 $5,883.97 $37,435.36
26 945-180-008-1 $31,551.39 $5,883.97 $37,435.36
27 945-180-007-0 $31,551.39 $5,883.97 $37,435.36
28 945-180-010-2 $31,551.39 $5,883.97 $37,435.36
29 945-180-013-5 $31,551.39 $5,883.97 $37,435.36
30 945-140-011-9 $31,551.39 $5,883.97 $37,435.36
31 945-140-003-2 $31,551.39 $5,883.97 $37,435.36
32 945-140-002-1 $31,551.39 $5,883.97 $37,435.36
33 945-140-001-0 $31,551.39 $5,883.97 $37,435.36
34 922-140-007-9 $27,399.67 $5,109.72 $32,509.39
35 922-140-014-5 $27,399.67 $5,109.72 $32,509.39
36 922-150-025-6 $27,399.67 $5,109.72 $32,509.39
TOTAL $ 1,123,394.88 $209,500.17 $1,332,895.05
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 7
PART 3 - EXHIBIT 2
METHOD AND FORMULA OF ASSESSMENT SPREAD
Since the improvements are to be funded by the levying of assessments, the "Municipal
Improvements Act of 1913" and Article XIIID of the State Constitution require that
assessments must be based on the estimated special benefit that the properties receive
from the works of improvement. In addition, Article XIIID, Section 4 of the State
Constitution requires that a parcel's assessment may not exceed the reasonable cost of
the proportional special benefit conferred on that parcel. Section 4 provides that only
special benefits are assessable and the local agency levying the assessment must
separate the general benefits from the special benefits. It also requires that publicly
owned properties, which benefit from the improvements be assessed. Neither the Act
nor the State Constitution specifies the method or formula that should be used to
apportion the costs to properties in any special assessment district proceedings. The
responsibility for recommending an apportionment of the costs to properties, which
benefit from the improvements rests with the Assessment Engineer, who is appointed
for the purpose of making an analysis of the facts and determining the correct
apportionment of the assessment obligation. In order to apportion the assessments to
each parcel in direct proportion with the special and direct benefit, which it will receive
from the improvements, an analysis has been completed and is used as the basis for
apportioning costs to each property within the Assessment District as explained below.
Based upon an analysis of the special and direct benefit to be received by each parcel
from the construction of the works of improvement, the Assessment Engineer
recommends the apportionment of costs as outlined below. Ballots will be mailed prior
to the hearing entitling property owners to vote in favor or against the Assessment
District. Ballots will be weighted by the amount of the assessment for each parcel. The
final authority and action rests with the City Council after hearing all testimony and
evidence presented at a public hearing. Upon the conclusion of the public hearing, the
City Council must make the final determination whether or not the assessment spread
has been made in direct proportion to the estimated special benefits received by each
parcel within the Assessment District. Ballot tabulation will be finalized at that time and,
if a majority of the ballots weighted by assessment amount are in support of the
Assessment District, then the City Council may form the Assessment District.
The following sections set forth the methodology used to apportion the costs of the
improvements to each parcel.
SDecial Benefit and Method of ADDortionment
The proposed street and storm drain improvements to be funded by the Assessment
District are necessary and required for the mitigation of: erosion of existing dirt roads;
sedimentation on the downstream properties; overall improvement of traveling
conditions; and storm water conveyance during the storm events. When significantly
wet, these dirt roads are severely impacted to the point where the roads are
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 8
impassable, the residents are unable to leave or return to their homes. Emergency
services (Police, Fire, Ambulance) are unable to gain vehicular access to the properties
within the Assessment District due to the impassable roadways. These proposed street
and storm drain improvements would provide publicly maintained all-weather backbone
street improvements to the parcels within the Assessment District.
Because the proposed improvements are local residential streets and not public
thoroughfares, the improvements have been determined to be a special and direct
benefit to the parcels within the boundary of the Assessment District. Special benefit
accrues to each parcel to be served by the improvements to be constructed. Said
improvements have been analyzed and the method of spreading the costs is shown
below.
ZONE 1 - Street/Storm Drain Improvements
Zone 1 includes street and related storm drain improvements. The street improvements
include the construction of asphalt concrete (AC) paved streets on John Warner Road
(northeast of Jeramie Road), Lolita Road, Paulita Road, Colver Court and La Presa
Loop. (Refer to the boundary map) Currently, these streets are dirt roads.
The proposed street improvements will comply with City Standards (i.e., a modified
collector street - 66' R/W and a modified local mountain residential street - 60'R/W)
and will be accepted by the City to be maintained.
The watershed boundary for this area encompasses approximately 48 acres and
predominantly flows southwesterly across Lolita Road toward the intersection of John
Warner and Jeramie Roads. Localized natural concentrated flows cross Paulita Road,
and then cross John Warner Road twice, flowing into a temporary desilting basin, which
outlets into the natural drainage course that flows onto John Warner Road near Jeramie
Road, then broadens and sheet flows over Jeramie Road and continues through Zone 2
parcels towards an existing earthen channel northwesterly of John Warner Road, south
of Cabrillo Avenue. The existing drainage improvements providing minimal protection to
the dirt roads include a few culverts of significant sizes, a Corrugated Metal Pipe (CMP)
crossing Paulita Road, 3 - CMP crossing John Warner Road west of Colver Court, 3 -
CMP crossing John Warner Road between Colver Court and La Presa Loop.
The proposed storm drain facilities will protect the proposed street improvements by
improving the storm water run-off conveyance during storm events and as well as
reduce the impacts of sedimentation on the downstream paved roads and properties.
The proposed storm drain improvements will include, but are not limited to, upgrades
and modifications to existing drainage facilities including the replacement of the existing
under sized CMP culverts with new Reinforced Concrete Pipe (RCP) culverts, the
construction of a permanent desilting basin, catch basins, rock slope protection,
manholes, a headwall, cutoff wall and a 42-inch RCP outlet from the desilting basin.
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 9
Said storm drain improvements shall comply with City Standards and Riverside County
Flood Control and Water Conservation District guidelines.
The Spread for Zone 1
There are thirty-six (36) assessment parcels within the proposed assessment district.
Of the 36 parcels, only 33 parcels derive special and direct benefit from the proposed
street and related storm drain improvements. These 33 parcels will make up Zone 1 of
the Assessment District. Thus, in Zone 1, it is proposed that the cost of constructing
these improvements be spread equally among the 33 parcels (assessment parcels 1
through 33). These parcels each derive special and direct benefit from the proposed
street and street related storm drain improvements due to the following:
(a) access to their homes/properties via City maintained all weather paved roads;
and
(b) assured emergency response services to their homes/properties via City
maintained all weather paved roads; and
(c) permanent mitigation of erosion of existing streets and of sedimentation on travel
lanes.
Zone 2 - Storm Drain Improvements
Zone 2 includes only storm drain improvements. As discussed in the previous section,
the watershed ultimately flows to the intersection of John Warner Road and Jeramie
Road, where it broadens and sheet flows over Jeramie Road and enters into Zone 2's
area. In this area, the watershed continues to sheet flow southwesterly through
assessment parcels 34 and 35 toward an existing earthen channel northwesterly of
John Warner Road, south of Cabrillo Avenue.
Existing drainage improvements within this zone are minimal and include a down drain
at the northeast corner of Cabrillo Avenue and John Warner Road on assessment
parcel no. 35 and an earthen channel at the northwest corner of said intersection along
assessment parcel no. 36.
The proposed improvements will improve the storm water conveyance during the storm
events and reduce the impacts of flooding, erosion and sedimentation on the properties.
Said improvements will include upgrades, modifications, additions to existing drainage
improvements and also will completely remove the drainage course from the properties
and direct it into the public right-of-way. New improvements include, but are not limited
to, catch basins, rock slope protection, manholes, headwall, cutoff wall and the
continuation of the 42-inch RCP from the Zone 1 desilting basin to south of Cabrillo
Avenue. Said improvements shall comply with City Standards and Riverside County
Flood Control and Water Conservation District guidelines.
There are two streets within Zone 2 of the proposed Assessment District. However,
these paved streets are already improved and, excluding work due to the proposed
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Reporl- June 24, 2003
Page 10
storm drain improvements, will not be further improved as part of this Assessment
District.
The Spread for Zone 2
Of the 36 parcels within the Assessment District, only 3 parcels derive special and direct
benefit from these proposed storm drain improvements. These 3 parcels will make up
Zone 2 of the Assessment District. Thus, it is proposed that the cost of constructing
these storm drain improvements be spread equally among the 3 Zone 2 parcels
(assessment parcels 34, 35 & 36) since they will all derive the same special and direct
benefit from these improvements due to the following:
(a) improvement of storm water conveyance (I.e. flood protection);
(b) mitigation of sedimentation on properties; and
(c) acquisition of usable property that was previously set aside for drainage courses.
Table No. 3 below summarizes the benefit spread for the street and storm drain
improvements.
Table No.3 - Benefit Spread for
Street and Storm Drain Improvements
Assess. Benefit Zone 1 - Zone 2 -
No. Factor Imprv't Costs Imprv't Costs
1 1.00 $31,551.39
2 1.00 $31,551.39
3 1.00 $31,551.39
4 1.00 $31,551.39
5 1.00 $31,551.39
6 1.00 $31,551.39
7 1.00 $31,551.39
8 1.00 $31,551.39
9 1.00 $31,551.39
10 1.00 $31,551.39
11 1.00 $31,551.39
12 1.00 $31,551.39
13 1.00 $31,551.39
14 1.00 $31,551.39
15 1.00 $31,551.39
16 1.00 $31,551.39
17 1.00 $31,551.39
18 1.00 $31,551.39
19 1.00 $31,551.39
20 1.00 $31,551.39
21 1.00 $31,551.39
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 11
Assess. Benefit Zone 1 - Zone 2 -
No. Factor Imprv't Costs Imprv't Costs
22 1.00 $31,551.39
23 1.00 $31,551.39
24 1.00 $31,551.39
25 1.00 $31,551.39
26 1.00 $31,551.39
27 1.00 $31,551.39
28 1.00 $31,551.39
29 1.00 $31,551.39
30 1.00 $31,551.39
31 1.00 $31,551.39
32 1.00 $31,551.39
33 1.00 $31,551.39
34 1.00 --- $27,399.67
35 1.00 --- $27,399.67
36 1.00 --- $27,399.67
Total: $1,041,195.87 $82,199.01
Coordination with the respective utility companies for the proposed street and storm
drainage improvements will take place to address the existing utilities. By virtue of the
City's prior rights established by the offer of dedication for public road purposes on
Parcel Map 6607, recorded on January 26, 1976 in the County of Riverside, it shall be
the responsibility of the respective utility agency to relocate their existing utilities, as
needed. There shall be no utility relocation costs within this proposed Assessment
District.
In conclusion, it is my opinion that the assessments for the referenced Assessment
District have been spread in direct accordance with the estimated special benefit that
each parcel receives from the proposed work of improvements.
Dated:
June 24, 2003
CITY OF TEMECULA
William G. Hughes, P.E.
R.C.E. No. 36617
Dir. of PW/City Engineer/Assessment Engineer
Riverside County, State of California
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 12
I, Susan Jones, CMC, as CITY CLERK of the CITY OF TEMECULA, CALIFORNIA do
hereby certify that the foregoing Assessment, together with the Diagram attached
thereto, was filed in my office on the _ day of , 2003.
CITY CLERK
CITY OF TEMECULA
STATE OF CALIFORNIA
I, Susan Jones, CMC, as CITY CLERK of the CITY OF TEMECULA, CALIFORNIA do
hereby certify that the foregoing Assessment, together with the Diagram attached
thereto, was preliminary approved by the City Council of the CITY OF TEMECULA,
CALIFORNIA on the _ day of , 2003.
CITY CLERK
CITY OF TEMECULA
STATE OF CALIFORNIA
I, Susan Jones, CMC, as CITY CLERK of the CITY OF TEMECULA, CALIFORNIA do
hereby certify that the foregoing Assessment, together with the Diagram attached
thereto, was finally approved and confirmed by the City Council of said City on the _
day of , 2003.
CITY CLERK
CITY OF TEMECULA
STATE OF CALIFORNIA
I, William G. Hughes, P.E., as DIRECTOR OF PUBLIC WORKS, CITY ENGINEER of
the CITY OF TEMECULA, CALIFORNIA do hereby certify that the foregoing
Assessment, together with the Diagram attached thereto, was recorded in my office on
the _ day of , 2003.
DIRECTOR OF PUBLIC WORKS, CITY ENGINEER
CITY OF TEMECULA
STATE OF CALIFORNIA
City of Temecuta - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 13
A Notice of Assessment was recorded and the Assessment Diagram was filed in the
Office of the County Recorder of the County of Riverside, California on , 2003.
CITY CLERK
CITY OF TEMECULA
STATE OF CALIFORNIA
PART 4
Boundary Map and Diagram of District
Copies of the Boundary Map and Assessment District Diagram are on file in the Office
of the City Clerk of the City of Temecula. For your convenience, a reduced copy of the
Boundary Map and District Diagram is attached hereto.
As required by the 1913 Act, Section 10204 (d), the Assessment District Diagram
should include the following: "(a) the exterior boundaries of the assessment district, (b)
the boundaries of any zones within the district, and (c) the lines and dimensions of each
parcel of land within the district." This information should be shown, as they existed at
the time of passage of the resolution of intention.
Refer to the Assessment Roll as shown in Exhibit 1 of Part 3 of this report.
PART 5
Description of Facilities
The following is a description of proposed improvements as allowed under the 1913 Act
to be constructed, acquired, installed, maintained, repaired or improved under the
provisions of the Act. Refer to the Plans and Specifications described in Part 1 of this
report for the general location of the improvements to be constructed.
Street ImDrovements: including the construction of John Warner Road, Lolita Road,
Paulita Road, Colver Court and La Presa Loop. Full width improvements to include, but
not be limited to: grading, asphalt berm, asphalt pavement, signage and striping and
any other appurtenant improvements necessary to complete John Warner Road, Lolita
Road, Paulita Road, Colver Court and La Presa Loop.
Storm Drain ImDrovements: including, but not limited to: Reinforced Concrete Pipe
(RCP) crossings at Paulita Road and John Warner Road, a permanent detention basin,
an RCP storm drain system along John Warner Road terminating approximately 210
feet south of the intersection of John Warner Road and Cabrillo Road, an outlet
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 14
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Preliminary Engineer's Report - June 24, 2003
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City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 16
structure to include rock slope protection and any other appurtenant improvements
necessary to complete the Assessment District storm drain improvements.
PART 6
Annual Administrative Levies
Notice is hereby given that it is the intention of the City to levy assessments, in addition
to the assessments for the Improvements as detailed in Part 2, for the following
purposes:
A. Pursuant to Section 8682 of the California Streets and Highways Code, in
addition to or as a part of the assessment lien levied against each parcel of
land within the Assessment District, each parcel of land shall also be subject
to an annual assessment to pay costs incurred by the County Auditor which
result from the estimated expenses of the collection of the assessments. Said
additional assessment shall not exceed $8 per parcel per installment, or $16
per parcel per year.
B. Pursuant to Section 8682.1 of the California Streets and Highways Code, in
addition to or as a part of the assessment lien levied against each parcel of
land within the Assessment District, each parcel of land shall also be subject
to an annual assessment to pay cost incurred by the City which result from
the expenses of (i) registration of any bonds and (ii) compliance with federal
arbitrage laws. The amounts collected will be based on actual administrative
expenses or projected administrative expenses, and no maximum must be
stated in this Engineer's Report. If the City performs any transfer, registration,
authentication, payment or other related registration function, the City may be
reimbursed for its actual expenses, including a pro rate amount of the salaries
of the City employees involved in the performance of these functions. In
addition, no public hearing is required prior to their levy.
PART 7
Subdivision Criteria
The area within the Assessment District boundary is zoned for 2.5-acre minimum
parcels. There are larger parcels within Zone 1 of the Assessment District with the
potential for further subdivision. If a property owner is to subdivide an assessed parcel
into two or more parcels, the assessment of the original parcel per this report shall be
spread equally among the parcels created by the subdivision.
If subdivision occurs during the time frame that the assessment for the Assessment
District is on the tax roll, it is the City's intention to require the property owner
performing the subdivision to pay a subdivision fee. The collection of the subdivision
City of Temecula - Assessment District No. 03-04 (John Warner Rd.)
Preliminary Engineer's Report - June 24, 2003
Page 17
fee will maintain an equal per parcel share of the costs of the Assessment District
funded improvements, since each parcel will equally derive special and direct benefit
from the improvements.
The Subdivision Fee (SF) shall be calculated as follows:
SF = N x [TA-(RNN)]
Where:
N = Number of new parcels created by subdividing original parcel
RA = Recorded (total) per parcel assessment on the original 33 Zone 1
parcels
TA = Theoretical (total) per parcel assessment had the subdivided parcels
been in existence within Zone 1 at the time of district formation.
TA = (RA x 33) + (32 + N)
Any Subdivision Fees shall be collected by the City in the subdivision process and shall
be used to decrease the overall bond debt thus equalizing the benefit to all parcels.
MEMORANDUM
TO:
DATE:
Michaela Ballreich, Deputy Director of Support Services
rJ;creg Butler, Principal Engineer - Capital Projects
June 23, 2003
FROM:
SUBJECT:
City Council Agenda Item - John Warner Road
Revised Report and Resolutions
cc:
Bill Hughes, Director of Public Works/City Engineer (Memo Only)
The attached documents contain recent revisions to the two John Warner Road Assessment District
resolutions that the City Council will be adopting at the June 24, 2003 meeting. A revised
Engineer's Report is also attached.
The revisions were necessary due to the finalization of a mechanism to collect a contingent
assessment on properties within the John Warner Road Assessment District that subdivide in the
future. Paul Thimmig, the City's Bond Council, provided the revised documents and will attend the
meeting to address the changes.
Attachments:
Resolution of Intention - Revised
Resolution of Preliminary Approval of Engineer's Report - Revised
Engineer's Report - Revised
-1-
R;\Butler\My Documents\Word\BallreichmemOl.doc
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA OF INTENTION TO ACQUIRE IMPROVEMENTS AND
TO FORM AN ASSESSMENT DISTRICT NO. 03-04 (JOHN
WARNER ROAD) AND RELATED INTEGRATED FINANCING
DISTRICT
WHEREAS, the City Council (the "Council") of the City of Temecula (the "City") is of the
opinion that the public interest and convenience require and that it is the intention of the Council
to order the acquisition and construction of the improvements described in Exhibit A attached
hereto and incorporated herein by this reference (the "Improvements"); and
WHEREAS, the Council will accomplish the financing of the Improvements by the
formation of the City of Temecula Assessment District No. 03-04 (John Warner Road) (the
"Assessment District") pursuant to the Municipal Improvement Act of 1913, being Division 12 of
the California Streets and Highways Code (the "Act") and the issuance of municipal bonds
pursuant to the Improvement Bond Act of 1915, being Division 10 of the California Streets and
Highways Code (the "Bond Act"); and
WHEREAS, the land within the boundaries of the Assessment District will be specially
benefited by the Improvements; and
WHEREAS, in order to assure an equitable contribution by the landowners within the
Assessment District, the Council proposes to form, in combination with the Assessment District,
an integrated financing district to be known as the City of Temecula Integrated Financing
District No. 03-05 (John Warner Road) (the "Integrated Financing District") pursuant to the
Integrated Financing District Act, being Sections 53175 et. seq. of the California Government
Code, as amended (the "IFD Act"), to include those parcels within the Assessment District that
may later subdivide into additional buildable parcels as further provided herein; and
WHEREAS, the Improvements are for the purpose of repairing, restoring, rebuilding,
rehabilitation or modernizing existing street and storm drain improvements and there are over
12 resident voters within the proposed boundaries of the Assessment District; and
WHEREAS, the Director of Public Works of the City has advised the Council that he has
determined that the Improvements are necessary for reasons of public safety and to avoid
substantially larger future costs due to deterioration and obsolescence of the existing roadway
and drainage facilities.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as
follows:
Section 1. Whenever any public way is herein referred to as running between two
publiC ways, or from or to any public way, the intersection of the public ways referred to are
included to the extent that work shall be shown on the plans herein referred to.
Section 2. Said streets and highways are more particularly shown on the records in the
Office of the County Recorder of Riverside County, California and are shown upon the plans
referred to in the Engineer's Report described below.
Section 3. All of said work and improvements shall be acquired and constructed at the
places and in the particular locations, of the forms, sizes, dimensions and materials, and at the
lines, grades and elevations as shown and delineated upon the plans, profiles and
specifications.
Section 4. There is to be excepted from the work herein described any of such work
already done to line and grade and marked "excepted" or shown "not to be done" on said plans,
profiles and specifications.
Section 5. Notice is hereby given of the fact that in many cases said work and
improvements will bring the finished work to a grade different from that formerly existing, and to
that extent work will be done to said changed grades.
Section 6. The Council does hereby intend to adopt and establish, as the official
grades for said work, the grades and elevations shown upon said plans, profiles and
specifications upon completion of the same. All such grades and elevations shall be in feet and
decimals thereof, with reference to the datum plane of the City.
Section 7. The description of the Improvements and the termini of the work contained
in this Resolution of Intention are general in nature. All items of work do not necessarily extend
for the full length of the description thereof. The plans and profiles of the work, and maps and
descriptions to be contained in the Engineer's Report shall be controlling as to the correct and
detailed description thereof.
Section 8. Said Improvements, in the opinion of the Council, are of more than local,
general or ordinary public benefit, and the costs and expenses thereof are made chargeable
upon an assessment district, the exterior boundaries of which district are the composite and
consolidated area as more particularly shown on a map labeled "Proposed Boundaries of
Assessment District No. 03-04 (John Warner Road), City of Temecula, Riverside County,
California," prepared by the Engineer of Work and on file in the Office of the City Clerk, to which
reference is hereby made for further particulars. Said map indicates by a boundary line the
extent of the territory included in the proposed Assessment District and shall govern for all
details as to the extent of the Assessment District.
Section 9. The Council further declares that all public streets and highways within the
Assessment District in use in the performance of a public function as such shall be omitted from
the assessment hereafter to be made to cover the costs and expenses of the Improvements.
Section 10. Notice is hereby given that serial and/or term bonds to represent unpaid
assessments, and to bear interest at a rate not to exceed the maximum rate provided by law
shall be issued pursuant to the Bond Act, and that the applicable provisions of Part 11.1 of the
Bond Act, providing an alternative procedure for the advance payment of assessments and the
calling of bonds, may apply. The last installment of such bonds shall mature not to exceed
thirty (30) years from the second day of September next succeeding twelve (12) months from
their date.
Section 11. Except as herein otherwise provided for the issuance of bonds, all of said
Improvements shall be done pursuant to the provisions of the Act.
-2-
Section 12. The Council finds and declares that a special reserve fund as provided in
Part 16 of the Bond Act (commencing with Section 8880) shall be required, the amount thereof
to be fixed and determined upon the sale of bonds for the Assessment District.
Section 13. The Council hereby covenants with the owners of said assessment bonds
to be issued that it will commence and thereafter diligently prosecute to completion foreclosure
actions regarding delinquent installments of the assessments, as will be more fully specified in
the resolution of the Council authorizing the issuance of said assessment bonds.
Section 14. The Council declares that it is not the intention of the Council to levy
assessments to maintain, repair, or improve the acquisitions and improvements pursuant to
Section 10100.8 of the California Streets and Highways Code in these proceedings. However,
the Council may initiate separate proceedings to establish a maintenance assessment district
encompassing the land in the Assessment District.
Section 15. The Council hereby acknowledges receipt of a letter from the Director of
Public Works, wherein the Director of Public Works has determined that the Improvements are
necessary for reasons of public safety and to avoid substantially larger future costs due to
deterioration and obsolescence of the public facilities involved. This Council finds and
determines, based upon the letter of the Director of Public Works and such other information as
has been provided to it, that (a) there are over 12 resident voters within the area proposed to be
assessed in these proceedings; (b) the Improvements are necessary for reasons of public
safety and to avoid substantially larger future costs due to deterioration and obsolescence of
the public facilities involved; and (c) in light of the foregoing, and pursuant to Section 2808.6 of
the California Streets and Highways Code, Division 4 of the Streets and Highways Code does
not apply to these proceedings.
Section 16. Said acquisitions and Improvements are hereby referred to the Director of
Public Works who is hereby appointed as the Engineer of Work for the Assessment District,
and the Director of Public Works is hereby directed to make and file, or cause to be made and
filed, with the City Clerk a report (the "Engineer's Report") in writing, presenting the following,
as applicable:
(a) Plans and specifications of the proposed Improvements to be constructed
and installed. The plans and specifications need not be detailed and are sufficient if
they show or describe the general nature, location, and extent of the Improvements.
(b) A general description of works or appliances already installed, if any, and
any other property necessary or convenient for the operation of the Improvements, if the
work, appliance, or property is to be acquired as part of the Improvements.
(c) An estimate of the cost of the Improvements and incidental expenses in
connection with the Improvements, including any costs of registering bonds, and an
estimate of the amount of any proposed assessment to maintain, repair, or improve the
Improvements for each of the first five years during which the assessment would be
levied.
(d) A diagram showing, as they existed at the time of the passage of this
Resolution, all of the following: (i) the exterior boundaries of the Assessment District; (ii)
the boundaries of any zones within the Assessment District; and (iii) the lines and
dimensions of each parcel of land within the Assessment District.
-3-
(e) A proposed assessment of the total amount of the cost and expenses of
the proposed Improvements upon the several subdivisions of land in the Assessment
District in proportion to the estimated special benefits to be received by each
subdivision, respectively, from the Improvements.
(f) A proposed maximum assessment upon each of the several subdivisions
of land in the Assessment District to pay costs incurred by the City and not otherwise
reimbursed which result from the administration and collection of assessments or from
the administration of any associated bonds and reserve or other related funds.
Section 17. If any excess shall be realized from the assessment it shall be used, in
such amounts as the Council may determine, in accordance with the provisions of law for one
or more of the following purposes:
(a) for transfer to the general fund of the City, provided that the amount of
any such transfer shall not exceed the lesser of $1,000 or five percent (5%) of the total
amount expended from the Assessment District improvement fund;
(b) as a credit upon the assessment and any supplemental assessment in
accordance with the provisions of Section 10427.1 of the California Streets and
Highways Code;
(c) for the maintenance of the Improvements or a specified part thereof; or
(d) to call bonds, thereby reducing outstanding assessments and subsequent
assessment installments. In the event that the Council determines to use all or some
portion of the surplus to call bonds prior to maturity, the City shall do each of the
following:
(1) Cause the special reserve fund, if any, to be reduced as necessary
pursuant to Section 8887 of the California Streets and Highways Code to assure
that the bonds will not become subject to federal income taxation.
(2) Cause any assessment previously paid in cash to receive a credit in
cash pursuant to subdivision (b) of Section 10427.1 of the California Streets and
Highways Code for the proportionate share of the surplus as determined
pursuant to subdivision (a) of Section 10427.1 of the California Streets and
Highways Code.
(3) Cause the preparation of new auditor's records to reflect the adjusted
principal amount of the remaining assessments. All subsequent assessment
installments shall be based upon the adjusted principal amount of the
assessments as reflected in the revised auditor's record.
Section 18. Notice is further given that the City will not obligate itself to advance
available funds from the City general fund to cure any deficiency which may occur in the bond
redemption fund; provided, however, that the Council does not hereby preclude itself from so
advancing such funds if, in its sole discretion, it so determines.
Section 19. It is further determined pursuant to California Streets and Highways Code
Section 8571.5, that the bonds may be refunded in the manner provided by Division 11.5 of the
-4-
California Streets and Highways Code if the Council determines that it is in the public interest or
otherwise necessary or appropriate to do so.
Section 20. Notice is hereby given that in the opinion of the Council, the areas
contained within the proposed Assessment District are the properties which will be specially
benefited by the Improvements and the issuance of bonds, and that the public interest and
convenience require, and that it is the intention of the Council that administrative expenses shall
be added to each annual installment of the unpaid assessments to pay costs incurred by the
City and not otherwise reimbursed, which result from the administration of the bonds and
reserve or other related funds, all as set forth in Section 10312 of the Act.
Section 21. Notice is hereby given that pursuant to Section 8682.1 of the Bond Act, in
addition to or as a part of the assessment lien levied against each parcel of land within the
Assessment District, each parcel of land shall also be subject to an annual assessment to pay
costs incurred by the City which result from the expenses of (i) registration of any bonds and (ii)
compliance with federal arbitrage laws. The amounts collected will be based on actual
administrative expenses or projected administrative expenses, and no maximum need be stated
in the Engineer's Report. If the City performs any transfer, registration, authentication, payment
or other related registration function, the City may be reimbursed for its actual expenses,
including a pro rata amount of the salaries of the City employees involved in the performance of
these functions. In addition, no public hearing shall be required prior to their levy. These costs
are to be distinguished from the costs of reimbursing the City for non-registration administrative
expenses, described in paragraph 20 above, for which an annual estimate will be provided in
the Engineer's Report.
Section 22. Pursuant to Section 20487 of the California Public Contract Code, in the
opinion of the Council, the public interest will not be served by allowing owners of property in
the proposed Assessment District to take a contract for the performance of any of the work of
the Improvements herein referenced, so that no notice of award of contract shall be published.
Section 23. It is hereby acknowledged that, for all purposes of the Act and the Bond
Act, the Director of Public Works is the Superintendent of Streets for the City.
Section 24. The City, in combination with the Assessment District, will proceed under
the IFD Act to create the Integrated Financing District. The boundaries of the Integrated
Financing District shall include the following parcels within the Assessment District that legally
may be subdivided into two or more parcels, as identified by Assessment Parcel Number on the
map of the Assessment District referred to in Section 8 above: [Greq Butler to insert
Assessment Nos. of parcels subiect to continqent levv here!. A contingent assessment, in the
amount to be identified in the Engineer's Report, will be levied upon each parcel in the
Integrated Financing District, and shall be due and payable in a lump sum at the time of
approval by this Council of a tentative subdivision map, vesting tentative subdivision map or
final subdivision map (whichever may first occur) for any parcel within the Integrated Financing
District. Any funds arising from any levy in the Integrated Financing District shall be used to
pay all or part of the principal and interest on debt incurred by the City for the Assessment
District, thereby relieving in part the obligation to pay assessments levied for the Assessment
District, in a manner determined by the Council in the documents for the bonds to be issued for
the Assessment District, but only to the degree that proceeds of any contingent assessment
parcels in the Integrated Financing District are actually collected and available for such
purpose. A public hearing on the proposed Integrated Financing District under the IFD Act will
be combined with the hearing required under the Act with respect to the formation of the
Assessment District, and the procedures for interested persons to protest against the proposed
-5-
Integrated Financing District shall be as described in Section 53183(a) of the California
Government Code, which section is by this reference included in this Resolution as it fully sets
forth herein, with any written protest as described therein to be delivered to the City Clerk prior
to the conduct of the public hearing on the proposed Integrated Financing District. The Director
of Public Works is hereby directed to include in the Engineer's Report a description of the rates
and methods of apportionment over time of the levy to be made in the Integrated Financing
District, and the contingencies under which each levy will be made.
-6-
Section 25. This Resolution shall take effect from and after the date of its passage
and adoption.
PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula at a
meeting held on the 24th day of June, 2003.
Mayor
ATTEST:
Susan W. Jones, CMC
City Clerk
-7-
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan Jones, City Clerk of the City of Temecula, HEREBY DO CERTIFY that the
foregoing Resolution No. was duly adopted at a special meeting of the City Council
of the City of Temecula on the 24th day of June, 2003, by the following roll call vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
Susan W. Jones, CMC
City Clerk
20002.05:J6818
-8-
EXHIBIT A
DESCRIPTION OF WORK
Street Improvements; including the construction of John Warner Road, Lolita Road,
Paulita Road, Colver Court and La Presa Loop. Full width improvements to include, but not be
limited to: grading, asphalt berm, asphalt pavement, signage and striping and any other
appurtenant improvements necessary to complete John Warner Road, Lolita Road, Paulita
Road, Colver Court and La Presa Loop.
Storm Drain Improvements; including, but not limited to: reinforced concrete pipe (RCP)
crossings at Paulita Road and John Warner Road, a permanent detention basin, an RCP storm
drain system along John Warner Road terminating approximately 210 feet south of the
intersection of John Warner Road and Cabrillo Road, an outlet structure to include rock slope
protection and any other appurtenant improvements necessary to complete the above-
described storm drain improvements.
A-1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA OF PRELIMINARY APPROVAL OF ENGINEER'S
REPORT, DESCRIBING BOUNDARIES OF PROPOSED
ASSESSMENT DISTRICT AND INTEGRATED FINANCING
DISTRICT AND CALLING FOR PUBLIC MEETING AND HEARING,
AND ELECTION - ASSESSMENT DISTRICT NO. 03-04 (JOHN
WARNER ROAD) AND INTEGRATED FINANCING DISTRICT NO.
03-05 (JOHN WARNER ROAD)
WHEREAS, the City Council (the "Council") of the City of Temecula (the "City") has on
this date adopted a resolution of intention (the "Resolution of Intention") to acquire and
construct improvements in the City (hereinafter, the "Improvements") in accordance with
proceedings for the City of Temecula Assessment District No. 03-04 (John Warner Road) (the
"Assessment District") and the related City of Temecula Integrated Financing District No. 03-05
(John Warner Road) (the "Integrated Financing District"), and did refer the proposed
Improvements to the Director of Public Works of the City, as the Engineer of Work for the
Assessment District, and did therein direct said Engineer of Work to cause to be made and filed
with the City Clerk a report in writing (hereinafter, the "Report") all as therein more particularly
described, under and pursuant to the Municipal Improvement Act of 1913, as amended (the
"Act") and the Integrated Financing District Act, as amended (the "IFD Act"); and
WHEREAS, the Engineer of Work has caused to be made and filed with the City Clerk
the Report as called for in the Resolution of Intention and under and pursuant to the Act and the
IFD Act, which Report has been presented to this Council for consideration; and
WHEREAS, this Council has duly considered the Report and each and every part
thereof, and finds that each and every part of the Report is sufficient, and that the Report
should not be modified in any respect.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as
follows:
Section 1. That the general description of the proposed Improvements contained in
the Report be, and hereby is preliminarily approved and confirmed.
Section 2. That the general description of works or appliances already installed and
any other property necessary or convenient for the operation of the Improvements, if the work,
appliance, or property is to be acquired as part of the Improvements, as contained in the Report
be, and hereby is preliminarily approved and confirmed.
Section 3. That the estimate of the costs of the Improvements and incidental
expenses in connection with the Improvements ordered, as contained in the Report be, and
hereby is preliminarily approved and confirmed.
Section 4. That the total cost of the Improvements, as contained in the Report be,
and hereby is preliminarily approved and confirmed.
Section 5. That the diagram showing the Assessment District and the boundaries
and dimensions of the subdivisions of land within the Assessment District as they existed at the
time of the passage of the Resolution of Intention, as contained in the Report be, and hereby is
preliminarily approved and confirmed.
Section 6. That the proposed assessment of the cost and expense of the proposed
Improvements upon each subdivision of real property in the Assessment District in proportion to
the estimated special benefits to be received by those subdivisions, respectively, from the
Improvements, as contained in the Report be, and hereby is preliminarily approved and
confirmed.
Section 7. That the proposed maximum annual assessment upon each of the
several subdivisions of land in the Assessment District to pay costs incurred by the City and not
otherwise reimbursed which result from the administration of any bonds and reserve or other
related funds, as contained in the Report be, and hereby is preliminarily approved and
confirmed.
Section 8. That the proposed Improvements and the costs thereof with regard to the
Integrated Financing District shall be the same as for the Assessment District as described in
Sections 1-4 above, and the boundaries of the Integrated Financing District shall be as
described in Section 24 of the Resolution of Intention and as identified on the diagram referred
to in Section 5 above.
Section 9. That the proposed maximum contingent assessment upon each of the
several subdivisions of land in the Integrated Financing District and the contingencies under
which the levies will be made, as contained in the Report be, and hereby is preliminarily
approved and confirmed.
Section 10. That the Report shall stand as the Engineer's Report for the purpose of
all subsequent proceedings had pursuant to the Resolution of Intention.
Section 11. The proposed boundaries of the Assessment District containing the
property proposed to be assessed in these proceedings, are hereby described as shown on a
map of said Assessment District on file in the office of the City Clerk entitled "Proposed
Boundaries of Assessment District No. 03-04 (John Warner Road), City of Temecula, Riverside
County, California," which indicates by a boundary line the extent of the territory included in the
proposed Assessment District and which shall govern for all details as to the extent of such
Assessment District, reference to such map being hereby made for particulars. Said map is
hereby approved.
Section 12. The proposed boundaries of the Integrated Financing District containing
the property proposed to be subject to contingent assessments in the proceedings, are as
identified by Assessment Numbers on the map described in Section 11 above, and which shall
govern for all details as to the extent of such Integrated Financing District, reference to such
map being hereby made for particulars. .
On the original and at least one copy of said map the City Clerk is hereby directed to
endorse her certificate evidencing the date and adoption of this Resolution. The City Clerk shall
file the original of the map in her office immediately following adoption of this Resolution and
shall file the copy of such map with the County Recorder of the County of Riverside. The
appropriate officer or officers of the City are hereby authorized to pay any and all fees required
by law in connection with the foregoing.
-2-
Section 13. A public meeting and public hearing on the proposed Assessment District
shall be held by this City Council in the City Council Chambers on August 12, 2003. A public
meeting and public hearing on the proposed Integrated Financing District shall be combined
with the public meeting and public hearing on the proposed Assessment District. The City Clerk
is hereby directed to provide notice of the public meeting and public hearing as required by
applicable law.
Section 14. An election shall be held of the landowners within the proposed
Assessment District as required by Article XIII D of the California Constitution, with the ballots
tabulated by the City Clerk at the conclusion of the public hearing referred to in Section 13
above as required by Section 53753 of the California Government Code. The ballot shall be in
the form of Exhibit A hereto, and the City Clerk is hereby directed to cause a ballot in such form
to be delivered to the owners of all of the property in the proposed Assessment District. Ballots
must be received by the City Clerk at the address indicated on the ballot at or before the time
set for the close of the public hearing, and any ballots received after the close of the public
hearing will not be tabulated even through the postmark on the envelope transmitting the ballot
is dated on or before the date of the public hearing. Ballots of those voting shall be weighted
according to the proportional financial obligation of the affected property.
Section 15. An election shall be held of the landowners within the proposed Integrated
Financing District as required by Article XIID of the California Constitution, with the ballots
tabulated by the City Clerk at the conclusion of the public hearing referred to in Section 13
above as required by Section 53753 of the California Government Code. The Ballot shall be in
the form of Exhibit B hereto, and the City Clerk is hereby directed to cause a ballot in such form
to be delivered to the owners of all of the property in the proposed Integrated Financing District.
Ballots must be received by the City Clerk at the address indicated on the ballot at or before the
time set for the close of the public hearing, and any ballots received after the close of the public
hearing will not be tabulated even through the postmark on the envelope transmitting the ballot
is dated on or before the date of the public hearing. Ballots of those voting shall be weighted
according to the proportional maximum contingent financial obligation of the affected property.
Section 16. This Resolution shall take effect from and after the date of its passage
and adoption.
PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula at a
meeting held on the 24'h day of June, 2003.
Mayor
ATTEST:
Susan W. Jones, CMC
City Clerk
-3-
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan Jones, City Clerk of the City of Temecula, HEREBY DO CERTIFY that the
foregoing Resolution No. was duly adopted at a special meeting of the City Council
of the City of Temecula on the 24'" day of June, 2003, by the following roll call vote:
AYES:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
Susan W. Jones, CMC
City Clerk
20002.05:J6817
-4-
EXHIBIT A
FORM OF ASSESSMENT BALLOT
CITY OF TEMECULA
JOHN WARNER ROAD ASSESSMENT DISTRICT
This assessment ballot is for the use of the property owner of the property identified below by its
Riverside County Assessor's Parcel Number within the John Warner Road Assessment District, City of
Temecula, County of Riverside, California.
In order to be counted, this ballot must be signed by the owner or owners whose name(s) and
address appear on the last equalized secured property tax assessment roll or is otherwise the fee title
owner of such land, or, if the owner is not an individual, by an authorized representative of the owner. In
the case of any public entity, the State of California or the United States, this ballot must be signed by the
representative of that public entity. This ballot must be returned either by mail or in person, at the public
meeting and hearing scheduled for 7:00 p.m. on August 12, 2003, at the following address:
City of Temecula
City Council Chambers
43200 Business Park Drive
Temecula, California 92590
Attention: City Clerk
Mailing by that date wiil not be sufficient. The ballot must be physically received by the City Clerk
prior to the deadline in order to be counted.
Ballots will be tabulated after completion of the public meeting and hearing on the proposed
assessment district. Ballots will be weighted according to the respective amounts of the individual
assessments.
If the amount of the assessments represented by "NO" votes is greater than the amount of the
assessments represented by "YES" votes, the assessments wiil not be levied.
Owner's Name:
Assessment Parcel Diagram Nos.:
County Assessor's Parcel Nos.:
MARK WITH AN "X" OR OTHER MARK.
ASSESSMENT BALLOT MEASURE
Shall the City Council of the City of Temecula establish the proposed
assessment district and levy special assessments in the amounts
(or less) and for the purposes stated in the Engineer's Report for the
John Warner Road Assessment District, City of Temecula, County
of Riverside, California.
YES
NO
Dated:
,2003
[insert landowner name]
By:
Title:
A-1
EXHIBIT B
FORM OF INTEGRATED FINANCING DISTRICT BALLOT
CITY OF TEMECULA
JOHN WARNER ROAD INTEGRATED FINANCING DISTRICT
This integrated financing district ballot is for the use of the property owner of the property identified
below by its Riverside County Assessor's Parcel Number within the John Warner Road Integrated
Financing District, City of Temecula, County of Riverside, California.
In order to be counted, this ballot must be signed by the owner or owners whose name(s) and
address appear on the last equalized secured property tax assessment roll or is otherwise the fee title
owner of such land, or, if the owner is not an individual, by an authorized representative of the owner. In
the case of any public entity, the State of California or the United States, this ballot must be signed by the
representative of that public entity. This ballot must be returned either by mail or in person, at the public
meeting and hearing scheduled for 7:00 p.m. on August 12, 2003, at the following address:
City of Temecula
City Council Chambers
43200 Business Park Drive
Temecula, California 92590
Attention: City Clerk
Mailing by that date will not be sufficient. The ballot must be physically received by the City Clerk
prior to the deadline in order to be counted.
Ballots will be tabulated after completion of the public meeting and hearing on the proposed
integrated financin9 district. Ballots will be weighted accordin9 to the respective amounts of the individual
maximum contingent assessments that may be levied in the integrated financing district.
If the amount of the contingent assessments represented by "NO" votes is greater than the
amount of the maximum contingent assessments represented by "YES" votes, the contingent
assessments will not be authorized to be levied.
Owner's Name:
Assessment Parcel Diagram Nos.:
County Assessor's Parcel Nos.:
MARK WITH AN "X" OR OTHER MARK.
ASSESSMENT BALLOT MEASURE
Shall the City Council of the City of Temecula establish the proposed
integrated financing district and levy contingent special assessments
in the amounts (or less) and for the purposes stated in the Engineer's
Report for the John Warner Road Integrated Financing District, City
of Temecula, County of Riverside, California.
YES
NO
Dated:
,2003
[insert landowner name]
By:
Title:
B-1
ENGINEER'S REPORT
FOR
ASSESSMENT DISTRICT NO. 03-04
(JOHN WARNER ROAD)
AND
INTEGRATED FINANCING
DISTRICT NO. 03-05
(JOHN WARNER ROAD)
CITY OF TEMECULA
RIVERSIDE COUNTY, CALIFORNIA
Prepared By:
City of Temecula
Public Works Department
43200 Business Park Drive
P.O. Box 9033
Temecula, California 92589-9033
June 24, 2003
CITY OF TEMECULA
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
ASSESSMENT DISTRICT NO. 03-04 (JOHN WARNER ROAD)
AND
INTEGRATED FINANCING DISTRICT NO. 03-05 (JOHN WARNER ROAD)
ENGINEER'S REPORT
TABLE OF CONTENTS
PAGE
INTRODUCTION AND CERTIFiCATION............................................................................... i
PART 1 Plans and Specifications ............................................................................... 1
PART 2 Cost Estimate ................................................................................................ 1
Table 1 - Detailed Project Cost Estimate................................................. 1
PART 3 Assessment Roll and Method of Assessment Spread .................................... 3
Table 2 - Project Cost Summary .............................................................. 5
Exhibit 1, Assessment Roll....................................................................... 6
Exhibit 2, Method and Formula of Assessment Spread ............................ 7
Table 3 - Benefit Spread ....................................................................... 10
PART 4 Boundary Map and Diagram of District ........................................................13
PART 5 Description of Facilities................................................................................13
PART 6 Annual Administrative Levies....................................................................... 14
PART 7 Subdivision Criteria......................................................................................14
PART 8 Integrated Financing District Provisions ....................................................... 15
APPENDIX A Resolution of Intention
APPENDIX B Property Owners List
APPENDIX C Environmental Certification
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page;
AGENCY: CITY OF TEMECULA
PROJECT: ASSESSMENT DISTRICT NO. 03-04 (JOHN WARNER ROAD) AND
INTEGRATED FINANCING DISTRICT NO. 03-05 (JOHN WARNER
ROAD)
TO: CITY COUNCIL
ENGINEER'S REPORT
PURSUANT TO THE PROVISIONS OF SECTION 10204
OF THE STREET AND HIGHWAY CODE AND
SECTION 53181 OF THE CALIFORNIA GOVERNMENT CODE
I, William G. Hughes, P.E., Director of Public Works/City Engineer of the City of
Temecula, am the duly appointed Engineer of Record and submit to the City Council the
Engineer's Report for Assessment District No. 03-04 (John Warner Road) (hereinafter
referred to as the "Assessment District") and for the related Integrated Financing District
No. 03-05 (John Warner Road) (hereinafter referred to as the "Integrated Financing
District"). Said Engineer's Report is pursuant to the provisions of Section 10204 of the
Street and Highway Code, being Division 12 of the Municipal Improvement Act of 1913
(the "1913 Act"), Section 53175 et. seq. of the California Government Code and the
Resolution of Intention No. , adopted by City Council of the City of
Temecula, County of Riverside, State of California in association with the proceedings
for the Assessment District and the Integrated Financing District. Said Engineer's
Report consists of eight (8) parts, as itemized and described below.
PART 1
Plans and Specifications: The Plans and Specifications are included in this part. They
do not necessarily need to be detailed, but they should include the general nature,
location and extent of the proposed improvements. Said Plans and Specifications have
been prepared as a separate document and are on file in the Office of the City Engineer
in the City of Temecula.
PART 2
Cost Estimate: An estimate of the cost is included in this part. Said estimate should
include the cost for all the proposed improvements, lands, right-of-way, easements, if
applicable and other incidental expenses costs and expenses associated with the
formation of the assessment district such as design/construction administrative costs,
formation costs, etc.
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page;;
PART 3
Assessment Roll and Method of Assessment Spread: The Assessment Roll and
Method of Assessment Spread is included in this part. Per section 10204 (e) of the
1913 Act, this part includes "the proposed assessment of the total amount of the cost
and expenses of the proposed improvements upon the several subdivisions of land
within the Assessment District, in proportion to the estimated benefits to be received by
each subdivision, respectively, from the improvement."
PART 4
Boundary Map and DiaQram of Assessment District: The boundary map and diagram of
the Assessment District is included in this part. Said items should be shown, as they
existed at the time the Resolution of Intention was passed and should also show the
exterior boundaries of the assessment district and the lines and dimensions of each
parcel of land included within the District.
PART 5
Description of Facilities: The description of facilities is included in this part. The
facilities should be listed, as allowed under the 1913 Act.
PART 6
Annual Administrative Levies: A description of the annual administrative levies is
included in this part. Notice is given that it is the City's intention to levy assessments in
addition to the assessments for the improvements.
PART 7
Subdivision Criteria: The subdivision criteria are included in this part. Any future
subdivision of parcels shall follow the noted criteria.
PART 8
InteQrated FinancinQ District Provisions: The description of the boundary of the
Integrated Financing District, the method of apportionment of the contingent levy and
the contingencies under which the levies will be made in the Integrated Financing
District are set forth in this part.
This report submitted this 24'h day of June 2003.
William G. Hughes, P.E.
Engineer of Work
City of Temecula
State of California
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 1
PART 1
Plans and Specifications
The plans and specifications to construct the street and storm drain improvements for
the Assessment District and the Integrated Financing District are on file in the Office of
the City Engineer in the City of Temecula.
PART 2
Cost Estimate
Tables No. 1 and 1A below summarize the cost estimate for the construction and
financing of the street and storm drain improvements for the Assessment District and the
Integrated Financing District
TABLE NO.1 - Detailed Project Cost Estimate
(Street/Storm Drain Improvements)
Description Preliminary Confirmed
Costs Costs
Street & Related Storm Drain ImD./Zone 1\
(1 ) Clearina and Grubbina $ 20,000
(2) Unclassified Excavation for: John Warner Road, $ 108,700
Lolita Road, Paulita Road, La Presa Loop and
Colver Court
(3) Unclassified Fill for: John Warner Road, Lolita $ 43,000
Road, Paulita Road, La Presa Loop and Colver
Court
(4) NPDES Compliance $ 20,000
(5) AC Pavement for: John Warner Road, Lolita $127,500
Road, Paulita Road, La Presa Loop and Colver
Court
(6) Crushed Aggregate Base for: John Warner $152,640
Road, Lolita Road, Paulita Road, La Presa Loop
and Colver Court
(7) Sloping AC Dike for: John Warner Road, Lolita $ 44,880
Road, Paulita Road, La Presa Loop and Colver
Court
(8) Concrete Drivewav $ 23,310
(9) Set Survev Monuments $ 2,400
10 Sianaae and StripinQ $ 5,700
11 42-inch RCPID-1500) $ 69,600
12 36-inch RCPID-1500) $ 79,940
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 2
Description Preliminary Confirmed
Costs Costs
13) 18-inch RCP (0-1500) $ 4,200
14) 14' Catch Basin $ 14,000
15) 21' Catch Basin $ 18,000
16 Manholes $ 5,000
17 Y, Ton Rock Slooe Protection $ 23,000
18 Headwall for 42-inch RCP $ 5,000
19 Cutoff Wall $ 3,250
20 36-inch Flared End Section $ 800
21 Oesiltina Basin $ 30.000
Estimate Subtotal for Zone 1 Imorovements $800,920
10% Mobilization/Traffic Control $ 80,092
20% Continaencv $160184
Estimate Total Zone 1 Improvement $1,041,196
Storm Drain ImDrovements IZone 2\:
(1 ) 42-inch RCP 10-1500) $ 72,540
(2) 48-inch RCP 10-2000) $ 41 ,850
(3) Manhole $ 6,620
4) Y, Ton Rock Slope Protection $ 3,720
5 Cutoff Wall $ 2,500
6 42-inch Flared End Section $ 1 000
Estimate Subtotal Zone 2 Improvements $ 128,230
Less City Contribution 1$65 000\
Subtotal $ 63,230
10% Mobilization/Traffic Control $ 6,323
20% Continaencv $12,646
Estimate Total Zone 2 Imorovements $ 82,199
Formation Costs:
1 Bond Counsel $ 25,000
2 Underwriter $ 30,000
3 Pavina Aaent $ 1,000
4 Bond Reserve Fund $132,500
(5) Disclosure Counsel $ 15,000
(6) Printinq $ 6.000
Formation Cost Subtotal: $ 209,500
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 3
TABLE NO. 1A - Additional Project Costs
(Street/Storm Drain Improvements)
NOT ASSESSED TO PROPERTIES
$28,545
$28,545
$65,000
Cit Contribution Subtotal:
$69,155
$ 8,400
$ 14,655
$214,300
als, storm drain easements
PART 3
Assessment Roll and Method of Assessment Spread
WHEREAS, on June 24, 2003, the City Council of the CITY OF TEMECULA, State of
California, did, pursuant to the provisions of the 1913 Act, the "Municipal Improvement
Act of 1913", being Division 12 of the Streets and Highways Code, of the State of
California, adopt its Resolution of Intention No. 03-_, for the installation, construction
and acquisition of certain public improvements, together with appurtenances and
appurtenant work in connection therewith, in a special assessment district known and
designated as
ASSESSMENT DISTRICT NO. 03-04 (JOHN WARNER ROAD)
(hereinafter referred to as the "Assessment District"); and
WHEREAS, said Resolution of Intention, as required by law, did direct the Engineer of
Work to make and file a "Report", which shall consists of the following as required by
Section 10204 of the Act:
a. Plans
b. Specifications
c. Cost Estimates
d. Assessment Diagram showing the Assessment District and the subdivisions of
land therein
e. A proposed assessment of the costs and expenses of the works of improvement
levied upon the parcels within the boundaries of the Assessment District and
f. The proposed maximum annual assessment to be levied upon each subdivision
or parcel of land within the Assessment District to pay the costs incurred by the
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 4
City and not otherwise reimbursed resulting from the administration and
collection of assessments or from the administration and registration of any
associated bonds and reserve or other related funds.
For particulars, reference is made to the Resolution of Intention as previously adopted.
NOW, THEREFORE, I, William G. Hughes, the authorized representative of the City of
Temecula, pursuant to Article XIIID of the California Constitution and the "Municipal
Improvement Act of 1913", do hereby submit the following:
1. Pursuant to the provisions of law and the Resolution of Intention, I have
assessed the costs and expenses of the works of improvement to be performed
in the Assessment District upon the parcels of land in the Assessment District
specially benefited thereby in direct proportion and relation to the estimated
special benefits to be received by each of said parcels. For particulars as to the
identification of said parcels, reference is made to the Assessment District's
Diagram, a copy of which is attached hereto.
2. As required by law, a Diagram of the Assessment District is attached, showing
the Assessment District boundaries, as well as the boundaries and dimensions of
the respective parcels and subdivisions of land within said Assessment District
as they existed at the time of the passage of said Resolution of Intention. Each of
the parcels has been given a separate assessment number upon said Diagram
and in said Assessment Roll.
3. The subdivisions and parcels of land, the numbers therein as shown on the
respective Diagram as attached hereto, correspond with the numbers as they
appear on the Assessment Roll as contained herein.
4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with
Division 10 of the Streets and Highways Code of the State of California (the
"Improvement Bond Act of 1915"), to represent all unpaid assessments, which
bonds shall be issued not to exceed the legal maximum term as authorized by
law, TWENTY (20) YEARS from the 2nd day of September next succeeding
twelve (12) months from their date. Said bonds shall bear interest at a rate not to
exceed the current maximum rate permitted by law at the time of sale of such
bonds.
5. By virtue of the authority contained in said "Municipal Improvement Act of 1913"
and by further direction and order of the legislative body, I hereby recommend
the following assessment to cover the costs and expenses of the works of
improvement for the Assessment District based on the costs and expenses, as
set forth below in Table 2:
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 5
Table No.2 - Project Cost Summary
ITEM DESCRIPTION
PRELIMINARY
COSTS
$ 209,500
$1,041,196
$ 82,199
CONFIRMED
COSTS
Estimated Formation Costs:
Estimated Cost of Construction for Zone 1
(Street and Related Storm Drain Improvements):
Estimated Cost of Construction for Zone 2
(Onlv Storm Drain Improvements):
Estimated Total To Assess:
$ 1,332,895
For particulars as to the individual assessments and their descriptions, please
refer to Exhibit I attached hereto.
6. The Method and Formula of Assessment Spread is as set forth in Exhibit "2",
which is attached hereto, referenced and so incorporated.
7. As directed in the Resolution of Intention, the Assessment District shall be
combined with the Integrated Financing District referenced therein, with
contingent assessments to be levied on the parcels designated for inclusion in
the Integrated Financing District as described in the Resolution of Intention and
Section 8 of this Report.
Dated:
CITY OF TEMECULA
William G. Hughes, P.E.
R.C.E. No. 36617
Dir. of PW, City Engineer/Assessment Engineer
Riverside County, State of California
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 6
PART 3 - EXHIBIT 1
ASSESSMENT ROLL
ASSESS. ASSESSOR PRELIM. AS
PARCEL PRELIM. AS PRELIM. CONFIRMED
PARCEL NUMBERS (APN) CONSTR. COSTS FORMATION APPROVED &
NO. COSTS RECORDED
1 945-120-010-6 $31,551.39 $5,883.97 $37,435.36
2 945-120-009-6 $31,551.39 $5,883.97 $37,435.36
3 945-120-008-5 $31,551.39 $5,883.97 $37,435.36
4 945-120-007-4 $31,551.39 $5,883.97 $37,435.36
5 945-120-011-7 $31,551.39 $5,883.97 $37,435.36
6 945-120-006-3 $31,551.39 $5,883.97 $37,435.36
7 945-120-012-8 $31,551.39 $5,883.97 $37,435.36
8 945-120-013-9 $31,551.39 $5,883.97 $37,435.36
9 945-140-012-0 $31,551.39 $5,883.97 $37,435.36
10 945-140-010-8 $31,551.39 $5,883.97 $37,435.36
11 945-140-004-3 $31,551.39 $5,883.97 $37,435.36
12 945-140-005-4 $31,551.39 $5,883.97 $37,435.36
13 945-140-006-5 $31,551.39 $5,883.97 $37,435.36
14 945-140-007-6 $31,551.39 $5,883.97 $37,435.36
15 945-140-008-7 $31,551.39 $5,883.97 $37,435.36
16 945-180-016-8 $31,551.39 $5,883.97 $37,435.36
17 945-180-014-6 $31,551.39 $5,883.97 $37,435.36
18 945-180-002-5 $31,551.39 $5,883.97 $37,435.36
19 945-180-001-4 $31,551.39 $5,883.97 $37,435.36
20 945-180-003-6 $31,551.39 $5,883.97 $37,435.36
21 945-180-004-7 $31,551.39 $5,883.97 $37,435.36
22 945-180-006-9 $31,551.39 $5,883.97 $37,435.36
23 945-180-012-4 $31,551.39 $5,883.97 $37,435.36
24 945-180-011-3 $31,551.39 $5,883.97 $37,435.36
25 945-180-009-2 $31,551.39 $5,883.97 $37,435.36
26 945-180-008-1 $31,551.39 $5,883.97 $37,435.36
27 945-180-007-0 $31,551.39 $5,883.97 $37,435.36
28 945-180-010-2 $31,551.39 $5,883.97 $37,435.36
29 945-180-013-5 $31,551.39 $5,883.97 $37,435.36
30 945-140-011-9 $31,551.39 $5,883.97 $37,435.36
31 945-140-003-2 $31,551.39 $5,883.97 $37,435.36
32 945-140-002-1 $31,551.39 $5,883.97 $37,435.36
33 945-140-001-0 $31,551.39 $5,883.97 $37,435.36
34 922-140-007-9 $27,399.67 $5,109.72 $32,509.39
35 922-140-014-5 $27,399.67 $5,109.72 $32,509.39
36 922-150-025-6 $27,399.67 $5,109.72 $32,509.39
TOTAL $ 1,123,394.88 $209,500.17 $1,332,895.05
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 7
PART 3 . EXHIBIT 2
METHOD AND FORMULA OF ASSESSMENT SPREAD
Since the improvements are to be funded by the levying of assessments, the "Municipal
Improvements Act of 1913" and Article XIIID of the State Constitution require that
assessments must be based on the estimated special benefit that the properties receive
from the works of improvement. In addition, Article XIIID, Section 4 of the State
Constitution requires that a parcel's assessment may not exceed the reasonable cost of
the proportional special benefit conferred on that parcel. Section 4 provides that only
special benefits are assessable and the local agency levying the assessment must
separate the general benefits from the special benefits. It also requires that publicly
owned properties, which benefit from the improvements be assessed. Neither the Act
nor the State Constitution specifies the method or formula that should be used to
apportion the costs to properties in any special assessment district proceedings. The
responsibility for recommending an apportionment of the costs to properties, which
benefit from the improvements rests with the Assessment Engineer, who is appointed
for the purpose of making an analysis of the facts and determining the correct
apportionment of the assessment obligation. In order to apportion the assessments to
each parcel in direct proportion with the special and direct benefit, which it will receive
from the improvements, an analysis has been completed and is used as the basis for
apportioning costs to each property within the Assessment District as explained below.
Based upon an analysis of the special and direct benefit to be received by each parcel
from the construction of the works of improvement, the Assessment Engineer
recommends the apportionment of costs as outlined below. Ballots will be mailed prior
to the hearing entitling property owners to vote in favor or against the Assessment
District. Ballots will be weighted by the amount of the assessment for each parcel. The
final authority and action rests with the City Council after hearing all testimony and
evidence presented at a public hearing. Upon the conclusion of the public hearing, the
City Council must make the final determination whether or not the assessment spread
has been made in direct proportion to the estimated special benefits received by each
parcel within the Assessment District. Ballot tabulation will be finalized at that time and,
if a majority of the ballots weighted by assessment amount are in support of the
Assessment District, then the City Council may form the Assessment District.
The following sections set forth the methodology used to apportion the costs of the
improvements to each parcel.
Special Benefit and Method of Apportionment
The proposed street and storm drain improvements to be funded by the Assessment
District are necessary and required for the mitigation of: erosion of existing dirt roads;
sedimentation on the downstream properties; overall improvement of traveling
conditions; and storm water conveyance during the storm events. When significantly
wet, these dirt roads are severely impacted to the point where the roads are
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 8
impassable, the residents are unable to leave or return to their homes. Emergency
services (Police, Fire, Ambulance) are unable to gain vehicular access to the properties
within the Assessment District due to the impassable roadways. These proposed street
and storm drain improvements would provide publicly maintained all-weather backbone
street improvements to the parcels within the Assessment District.
Because the proposed improvements are local residential streets and not public
thoroughfares, the improvements have been determined to be a special and direct
benefit to the parcels within the boundary of the Assessment District. Special benefit
accrues to each parcel to be served by the improvements to be constructed. Said
improvements have been analyzed and the method of spreading the costs is shown
below.
ZONE 1 - Street/Storm Drain Improvements
Zone 1 includes street and related storm drain improvements. The street improvements
include the construction of asphalt concrete (AC) paved streets on John Warner Road
(northeast of Jeramie Road), Lolita Road, Paulita Road, Colver Court and La Presa
Loop. (Refer to the boundary map) Currently, these streets are dirt roads.
The proposed street improvements will comply with City Standards (Le., a modified
collector street - 66' RJW and a modified local mountain residential street - 60'RJW)
and will be accepted by the City to be maintained.
The watershed boundary for this area encompasses approximately 48 acres and
predominantly flows southwesterly across Lolita Road toward the intersection of John
Warner and Jeramie Roads. Localized natural concentrated flows cross Paulita Road,
and then cross John Warner Road twice, flowing into a temporary desilting basin, which
outlets into the natural drainage course that flows onto John Warner Road near Jeramie
Road, then broadens and sheet flows over Jeramie Road and continues through Zone 2
parcels towards an existing earthen channel northwesterly of John Warner Road, south
of Cabrillo Avenue. The existing drainage improvements providing minimal protection to
the dirt roads include a few culverts of significant sizes, a Corrugated Metal Pipe (CMP)
crossing Paulita Road, 3 - CMP crossing John Warner Road west of Colver Court, 3 -
CMP crossing John Warner Road between Colver Court and La Presa Loop.
The proposed storm drain facilities will protect the proposed street improvements by
improving the storm water run-off conveyance during storm events and as well as
reduce the impacts of sedimentation on the downstream paved roads and properties.
The proposed storm drain improvements will include, but are not limited to, upgrades
and modifications to existing drainage facilities including the replacement of the existing
under sized CMP culverts with new Reinforced Concrete Pipe (RCP) culverts, the
construction of a permanent desilting basin, catch basins, rock slope protection,
manholes, a headwall, cutoff wall and a 42-inch RCP outlet from the desilting basin.
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 9
Said storm drain improvements shall comply with City Standards and Riverside County
Flood Control and Water Conservation District guidelines.
The Spread for Zone 1
There are thirty-six (36) assessment parcels within the proposed assessment district.
Of the 36 parcels, only 33 parcels derive special and direct benefit from the proposed
street and related storm drain improvements. These 33 parcels will make up Zone 1 of
the Assessment District. Thus, in Zone 1, it is proposed that the cost of constructing
these improvements be spread equally among the 33 parcels (assessment parcels 1
through 33). These parcels each derive special and direct benefit from the proposed
street and street related storm drain improvements due to the following:
(a) access to their homes/properties via City maintained all weather paved roads;
and
(b) assured emergency response services to their homes/properties via City
maintained all weather paved roads; and
(c) permanent mitigation of erosion of existing streets and of sedimentation on travel
lanes.
Zone 2 - Storm Drain Improvements
Zone 2 includes only storm drain improvements. As discussed in the previous section,
the watershed ultimately flows to the intersection of John Warner Road and Jeramie
Road, where it broadens and sheet flows over Jeramie Road and enters into Zone 2's
area. In this area, the watershed continues to sheet flow southwesterly through
assessment parcels 34 and 35 toward an existing earthen channel northwesterly of
John Warner Road, south of Cabrillo Avenue.
Existing drainage improvements within this zone are minimal and include a down drain
at the northeast corner of Cabrillo Avenue and John Warner Road on assessment
parcel no. 35 and an earthen channel at the northwest corner of said intersection along
assessment parcel no. 36.
The proposed improvements will improve the storm water conveyance during the storm
events and reduce the impacts of flooding, erosion and sedimentation on the properties.
Said improvements will include upgrades, modifications, additions to existing drainage
improvements and also will completely remove the drainage course from the properties
and direct it into the public right-of-way. New improvements include, but are not limited
to, catch basins, rock slope protection, manholes, headwall, cutoff wall and the
continuation of the 42-inch RCP from the Zone 1 desilting basin to south of Cabrillo
Avenue. Said improvements shall comply with City Standards and Riverside County
Flood Control and Water Conservation District guidelines.
There are two streets within Zone 2 of the proposed Assessment District. However,
these paved streets are already improved and, excluding work due to the proposed
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 10
storm drain improvements, will not be further improved as part of this Assessment
District.
The Spread for Zone 2
Of the 36 parcels within the Assessment District, only 3 parcels derive special and direct
benefit from these proposed storm drain improvements. These 3 parcels will make up
Zone 2 of the Assessment District. Thus, it is proposed that the cost of constructing
these storm drain improvements be spread equally among the 3 Zone 2 parcels
(assessment parcels 34, 35 & 36) since they will all derive the same special and direct
benefit from these improvements due to the following:
(a) improvement of storm water conveyance (I.e. flood protection);
(b) mitigation of sedimentation on properties; and
(c) acquisition of usable property that was previously set aside for drainage courses.
Table No. 3 below summarizes the benefit spread for the street and storm drain
improvements.
Table No.3 - Benefit Spread for
Street and Storm Drain Improvements
Assess. Benefit Zone 1 - Zone 2 -
No. Factor Imprv't Costs Imprv't Costs
1 1.00 $31,551.39
2 1.00 $31,551.39
3 1.00 $31,551.39
4 1.00 $31,551.39
5 1.00 $31,551.39
6 1.00 $31,551.39
7 1.00 $31,551.39
8 1.00 $31,551.39
9 1.00 $31,551.39
10 1.00 $31,551.39
11 1.00 $31,551.39
12 1.00 $31,551.39
13 1.00 $31,551.39
14 1.00 $31,551.39
15 1.00 $31,551.39
16 1.00 $31,551.39
17 1.00 $31,551.39
18 1.00 $31,551.39
19 1.00 $31,551.39
20 1.00 $31,551.39
21 1.00 $31,551.39
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 11
Assess. Benefit Zone 1 - Zone 2 -
No. Factor Imprv't Costs Imprv't Costs
22 1.00 $31,551.39
23 1.00 $31,551.39
24 1.00 $31,551.39
25 1.00 $31,551.39
26 1.00 $31,551.39
27 1.00 $31,551.39
28 1.00 $31,551.39
29 1.00 $31,551.39
30 1.00 $31,551.39
31 1.00 $31,551.39
32 1.00 $31,551.39
33 1.00 $31,551.39
34 1.00 --- $27,399.67
35 1.00 --- $27,399.67
36 1.00 --- $27,399.67
Total: $1,041,195.87 $82,199.01
Coordination with the respective utility companies for the proposed street and storm
drainage improvements will take place to address the existing utilities. By virtue of the
City's prior rights established by the offer of dedication for public road purposes on
Parcel Map 6607, recorded on January 26, 1976 in the County of Riverside, it shall be
the responsibility of the respective utility agency to relocate their existing utilities, as
needed. There shall be no utility relocation costs within this proposed Assessment
District.
In conclusion, it is my opinion that the assessments for the referenced Assessment
District have been spread in direct accordance with the estimated special benefit that
each parcel receives from the proposed work of improvements. It is further my opinion
that the contingent assessments for the referenced Integrated Financing District have
been determined in direct accordance with the estimated special benefit that such
parcel receives from the proposed work of improvements upon their subdivision as
described in Part 8 of this Report.
Dated:
June 24, 2003
CITY OF TEMECULA
William G. Hughes, P.E.
R.C.E. No. 36617
Dir. of PW/City Engineer/Assessment Engineer
Riverside County, State of California
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 12
I, Susan Jones, CMC, as CITY CLERK of the CITY OF TEMECULA, CALIFORNIA do
hereby certify that the foregoing Assessment, together with the Diagram attached
thereto, was filed in my office on the _ day of , 2003.
CITY CLERK
CITY OF TEMECULA
STATE OF CALIFORNIA
I, Susan Jones, CMC, as CITY CLERK of the CITY OF TEMECULA, CALIFORNIA do
hereby certify that the foregoing Assessment, together with the Diagram attached
thereto, was preliminary approved by the City Council of the CITY OF TEMECULA,
CALIFORNIA on the _ day of , 2003.
CITY CLERK
CITY OF TEMECULA
STATE OF CALIFORNIA
I, Susan Jones, CMC, as CITY CLERK of the CITY OF TEMECULA, CALIFORNIA do
hereby certify that the foregoing Assessment, together with the Diagram attached
thereto, was finally approved and confirmed by the City Council of said City on the _
day of , 2003.
CITY CLERK
CITY OF TEMECULA
STATE OF CALIFORNIA
I, William G. Hughes, P.E., as DIRECTOR OF PUBLIC WORKS, CITY ENGINEER of
the CITY OF TEMECULA, CALIFORNIA do hereby certify that the foregoing
Assessment, together with the Diagram attached thereto, was recorded in my office on
the _ day of , 2003.
DIRECTOR OF PUBLIC WORKS, CITY ENGINEER
CITY OF TEMECULA
STATE OF CALIFORNIA
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 13
A Notice of Assessment was recorded and the Assessment Diagram was filed in the
Office of the County Recorder of the County of Riverside, California on , 2003.
CITY CLERK
CITY OF TEMECULA
STATE OF CALIFORNIA
PART 4
Boundary Map and Diagram of District
Copies of the Boundary Map and Assessment District Diagram are on file in the Office
of the City Clerk of the City of Temecula. For your convenience, a reduced copy of the
Boundary Map and District Diagram is attached hereto.
As required by the 1913 Act, Section 10204 (d), the Assessment District Diagram
should include the following: "(a) the exterior boundaries of the assessment district, (b)
the boundaries of any zones within the district, and (c) the lines and dimensions of each
parcel of land within the district." This information should be shown, as they existed at
the time of passage of the resolution of intention.
Refer to the Assessment Roll as shown in Exhibit 1 of Part 3 of this report.
PART 5
Description of Facilities
The following is a description of proposed improvements as allowed under the 1913 Act
to be constructed, acquired, installed, maintained, repaired or improved under the
provisions of the Act. Refer to the Plans and Specifications described in Part 1 of this
report for the general location of the improvements to be constructed.
Street Improvements: including the construction of John Warner Road, Lolita Road,
Paulita Road, Colver Court and La Presa Loop. Full width improvements to include, but
not be limited to: grading, asphalt berm, asphalt pavement, signage and striping and
any other appurtenant improvements necessary to complete John Warner Road, Lolita
Road, Paulita Road, Colver Court and La Presa Loop.
Storm Drain Improvements: including, but not limited to: Reinforced Concrete Pipe
(RCP) crossings at Paulita Road and John Warner Road, a permanent detention basin,
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 14
an RCP storm drain system along John Warner Road terminating approximately 210
feet south of the intersection of John Warner Road and Cabrillo Road, an outlet
structure to include rock slope protection and any other appurtenant improvements
necessary to complete the Assessment District storm drain improvements.
PART 6
Annual Administrative Levies
Notice is hereby given that it is the intention of the City to levy assessments, in addition
to the assessments for the Improvements as detailed in Part 2, for the following
purposes:
A. Pursuant to Section 8682 of the California Streets and Highways Code, in
addition to or as a part of the assessment lien levied against each parcel of
land within the Assessment District, each parcel of land shall also be subject
to an annual assessment to pay costs incurred by the County Auditor which
result from the estimated expenses of the collection of the assessments. Said
additional assessment shall not exceed $8 per parcel per installment, or $16
per parcel per year.
B. Pursuant to Section 8682.1 of the California Streets and Highways Code, in
addition to or as a part of the assessment lien levied against each parcel of
land within the Assessment District, each parcel of land shall also be subject
to an annual assessment to pay cost incurred by the City which result from
the expenses of (i) registration of any bonds and (ii) compliance with federal
arbitrage laws. The amounts collected will be based on actual administrative
expenses or projected administrative expenses, and no maximum must be
stated in this Engineer's Report. If the City performs any transfer, registration,
authentication, payment or other related registration function, the City may be
reimbursed for its actual expenses, including a pro rate amount of the salaries
of the City employees involved in the performance of these functions. In
addition, no public hearing is required prior to their levy.
PART 7
Subdivision Criteria
The area within the Assessment District boundary is zoned for 2.5-acre minimum
parcels. There are larger parcels within Zone 1 of the Assessment District with the
potential for further subdivision. If a property owner is to subdivide an assessed parcel
into two or more parcels, the assessment of the original parcel per this report shall be
spread equally among the parcels created by the subdivision.
City of Temecula - Assessment District No. 03-04 (John Warner Road) and
Integrated Financing District No. 03-05 (John Warner Road)
Engineer's Report - June 24, 2003
Page 15
PART 8
Integrated Financing District Provisions
In light of the fact that any parcel created by a subdivision of land within the Assessment
District will equally derive special and direct benefit from the improvement to be
financed by zone 1 of the Assessment District, a contingent assessment shall be levied
on the parcels that may be subdivided identified by Assessment Numbers 1-33 in this
Report. The contingent assessment shall be in an amount calculated as follows, and
shall be due and payable in a lump sum at the time of approval by the City Council of a
tentative subdivision map, vesting tentative subdivision map or final subdivision map
(whichever may first occur) for the parcels.
CA = N x [TA-(RA/N)]
Where:
CA = Contingent Assessment
N = Number of new parcels created by subdividing original parcel
RA = Recorded (total) per parcel assessment on the original 33 Zone 1
parcels
TA = Theoretical (total) per parcel assessment had the subdivided parcels
been in existence within Zone 1 at the time of district formation.
TA = (RA x 33) + (32 + N)
Any funds of arising from any levy in the Integrated Financing District shall be used to
pay all or part of the principal and interest on debt incurred by the Assessment District
to finance the improvements, thereby relieving in part the obligation to pay assessments
levied for the Assessment District, in a manner determined in the documents for the
bond to be issued for the Assessment District, but only to the degree that proceeds of
any contingent assessments on parcels in the Integrated Financing District are actually
collected and available for such purpose.
ITEM 17
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINAN
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/City Council
ryf\ William G. Hughes, Director of Public Works/City Engineer
June 24, 2003
DATE:
SUBJECT:
Tract Map No. 26941, Located South of Pauba Road and East of Butterfield
Stage Road
PREPARED BY:
Ronald J. Parks, Deputy Director of Public Works
Gerald L. Alegria, Senior Engineer - Land Development
RECOMMENDATION: That the City Council approve Tract Map No. 26941 in conformance
with the Conditions of Approval.
BACKGROUND: Tract Map No. 26941 is a twenty eight (28) lot residential subdivision,
located South of Pauba Road and East of Butterfield Stage Road. The survey monuments are
required to be set.
On July 13, 1993, the Temecula City Council approved Vesting Tentative Tract Map 26941, with the
appropriate Conditions of Approval. The tentative map was subject to four series of Extensions of
Time and received its fifth and final Extension of Time on November 21, 2003 by the Planning
Director, with the appropriate Conditions of Approval. This final map is in conformance with the
approved tentative map. The approval of a final subdivision map, which substantially complies with
the previously approved tentative map is a mandatory ministerial act under State law. It should be
noted the Development Impact Fees (DIF) will be due and payable at the time of issuance of the
Building Permits.
FISCAL IMPACT: None
ATTACHMENTS:
1. Development Fee Checklist
2. Fees & Securities Report
3. Project Vicinity Map
4. Tract Map No. 26941
r:\agdrpt\2003\0624\tm26941.map
CITY OF TEMECULA
DEVELOPMENT FEE CHECKLIST
CASE NO. TM 26941
Staff reviewed the following fees relative to their applicability to this project.
FEE
CONDITIONS OF APPROVAL
Flood Control (ADP)
Not Paid
Development Impact Fee
Not Paid
2
r:\agdrpt\2003\0624\tm26941.map
CITY OF TEMECULA ENGINEERING DEPARTMENT
FEES AND SECURITIES REPORT
TRACT MAP 26941 DATE: June 24, 2003
IMPROVEMENTS FAITHFUL PERFORMANCE MATERIAL & LABOR SECURIIY
SECURITY
Street and Drainage $ 926,000.00 $ 463,000.00
Water $ 140,000.00 $ 70,000.00
TOTAL $ 1,066,000.00 $ 533,000.00
Monument $ 8,500.00 -
Erosion Control $ 213,000.00 -
DEVELOPMENT FEES
City Traffic Signing and Striping Costs $ 0.00
RCFCD (ADP) Fee $ Not Paid
Development Impact Fee $ Not Paid
SERVICE FEES
Planning Fee $ 129.00
Plan Check Fee $ 5,710.00
Monument Inspection Fee $ 425.00
Comprehensive Transportation Plan $ 8.00
Fees Paid to Date $ 6,272.00
Balance of Fees Due $ 0
3
r:\agdrptI2003\0624\tm26941.map
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ITEM 18
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APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANCE
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
DATE:
City Manager/City Council
Herman D. Parker, Director of Community servic~
June 24, 2003
TO:
FROM:
SUBJECT:
Community Services fiscal year 2003-2004 Annual Maintenance Agreements
PREPARED BY:
Kevin T. Harrington, Maintenance Superintendent
RECOMMENDATION: That the City Council approves the minor annual maintenance and
construction contracts for fiscal year 2003-2004 with:
General Contractors
1. Rizzo Construction, in an amount not to exceed $75,000
2. Murrieta Development, in an amount not to exceed $75,000
3. Becker Engineering Co, in an amount not to exceed $75,000
Electrical Contractor
4. Power Distributors Inc., in an amount not to exceed $ 50,000
Painting Contractor
5. Strong's Painting, in an amount not to exceed $100,000.
Paving, Grading and Excavation Contractors
6. Imperial Paving Co. Inc., in an amount not to exceed $50,000
7. NPG, INC., in an amount not to exceed $50,000
Plumbing Contractor
8. Dennis A. Hibberts Plumbing, in an amount not to exceed $50,000
BACKGROUND: Each year the City enters into numerous maintenance and construction
agreements with various contractors that perform minor maintenance and construction jobs. These jobs
usually range in cost from over $1,000 to under $25,000 and involve miscellaneous repairs to electrical,
fencing, painting, paving, grading or excavation, plumbing, and general construction. Nevertheless, each
job requires an agreement between the City and the contractor. In an effort to streamline these
C:IDocuments and SettingslkanigjlDesktoplContract Amendment 20032004\Annual 03-04 Main! Agreements.AGN11.doc
contractual requirements, staff is requesting to place under agreement eight (8) contractors which have
expertise in various key trades. This will give us the ability to perform routine and emergency repairs with
very little lead-time. Essentially, these agreements will give staff administrative tools needed to efficiently
execute minor maintenance and construction work by having executed agreements which satisfy
insurance, prevailing wage requirements, terms and conditions as well as a general scope of work. This
contracting technique is widely used by cities to employ a higher more responsive maintenance
capability. Also, in the event of emergency, that can impinge the safety of the City facilities, and other
City maintained areas, these agreements can facilitate an expedient reaction and resolution to adverse
conditions without jeopardizing administrative requirements. It is important to understand that the not to
exceed $50,000 to $100,000 amounts does not necessarily mean it will be spent but rather is a ceiling to
operate below on an as needed basis.
Although some job may be better accomplished by one contractor because of equipment availability,
timing issues and job location, every effort will be made by staff to distribute the work load evenly
between the contractors. The contractor will be responsible for providing a work proposal for each job,
which must be approved by staff before any work is started.
Staff mailed letters to several contractors in the local area that could meet the described minor
maintenance and constructions needs. The letters requested time and material pricing for both labor and
equipment rates. It also included holiday and overtime rates. Several contractors responded and
provided competitive labor and equipment rates as seen in Exhibit "A" of each agreement.
Review of these rates has determined they are consistent with current prevailing wages and current
hourly equipment rates previously paid by the City. The contractors listed below responded to the request
for time and material rates and are recommended for not to exceed $50,000 to $1 00,000 agreements for
a one (1) year term.
ComDanv
Amount not to Exceed
Term
Rizzo Construction.
Murrieta Development
Becker Engineering
Power Distributors Inc.
Strong's Painting
Imperial Paving Co.
NPG, INC.
Dennis A. Hibberts Plumbing
$75,000
$75,000
$75,000
$50,000
$100,000
$50,000
$50,000
$50,000
1 year
1 year
1 year
1 year
1 year
1 year
1year
1 year
FISCAL IMPACT: Adequate funds are available in the Fiscal Year 2003-2004 City Wide Annual
operating budget.
ATTACHMENT:
1. Contracts
C:\Documents and Settings\kanigj\Desktop\Contract Amendment 20032004\Annual 03-04 Maint Agreements.AGN11.doc
CITY OF TEMECULA
COMMUNITY SERVICES DEPARTMENT
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
ROUTINE MAINTENANCE/CONSTRICTION
THIS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by
and between the City of Temecula, ("City") and RIZZO CONSTRUCTION INC. ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance and/or construction upon real and personal property of the City of Temecula.
Work will include emergency repairs, emergency maintenance, maintenance work, and/or minor
construction work. The work under this Agreement is non-exclusive and City reserves the right to hire
other contractors to perform similar work. The procedure for assigning work is set forth in Exhibit" A" ,
Scope of Work, attached hereto and incorporated herein as though set forth in full. The Director of Public
Works ("Director"), or his designee, is authorized to approve the work in accordance with the procedures
of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and
shall terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures
set forth in Exhibit" A ". The maximum amount of payment under this Agreement shall be Seventy Five
Thousand Dollars and No Cents ($75,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices
shall be submitted between the first and fifteenth day of each month for services provided during the
previous month. The invoice shall describe the approved work assignment under which the work has been
performed. Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed
fees. If the City disputes any of the Contractor's fees, it shall give written notice to the Contractor within
thirty (30) days of receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor
shall cause a full time experienced Superintendent to be present on the site during all construction and to
oversee and supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be
furnished and work performed and completed subject to the approval of the City or its authorized
representatives, and the quality of the workmanship shall be guaranteed for one year from date of
acceptance.
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6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph
2., above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out
of this contract; the acceptance by Contractor of the fmal payment shall constitute a waiver of all claims
against the City under or arising out of this Contract except those previously made in writing and request
for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with
each claim for payment.
7. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department ofIndustrial Relations. These rates
are available from the California Department Industrial Relations' Internet web site http://www.dir.ca. gov .
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage
rates as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor
shall forfeit to the District, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for
each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work
done under this contract, by him or by any subcontractor under him, in violation of the provisions of the
Contract.
8. 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 3.
9. 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,
the 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 City 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 (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 oftime, 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.
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10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers,
agents and employees may sustain or incur or which may be imposed upon them for injury to or death of
persons, or damage to property arising out of Contractor's negligent or wrongful acts or omissions in
performing or failing to perform under the terms of this Agreement, excepting only liability arising out of
the sole negligence of the City.
11. LIABILITY INSURANCE. 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 coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California
and Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less
than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance
or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or
disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the
insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers,
officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies
are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the 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
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Contractor. The coverage shall contain no special limitations on the scope
of protection afforded to the City, its officers, officials, employees or
volunteers.
(2) For any claims related to this project, the Contractor's insurance coverage
shall be primary insurance as respects the City, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by
the City, its officers, officials, employees or volunteers shall be excess of
the 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, its 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 clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party,
reduced in coverage or in limits except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to the
City.
e. Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract. "
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the
City nor any of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to
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Contractor for performing services hereunder for the City. The City shall not be liable for compensation or
indemnification to Contractor for injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and
comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at
law or in equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in
the execution of the work under this Contract, as a result of failure to make the necessary independent
examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the
City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or
omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will
such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of
time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any,
to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has
been filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection
and audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection
and acceptance notwithstanding any payments or other prior inspections. Such fmal inspection shall be
made within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex,
age, or handicap.
22. WRITTEN NOTICE. 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:
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To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Rizzo Construction Inc.
30145 Corte Plata
Temecula, California 92591
(909) 676-3001
23. 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 of Temecula.
24. 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.
25. 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 jurisdiction over the City of Temecula. In the
event of litigation between the parties concerning this Contract, the prevailing party as determined by the
Court, shall be entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROHmITED INTEREST. No member, officer, or employee of the City of Temecula or
of a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof
during hislher tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board member,
officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial
or otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula,
and that if any such interest comes to the knowledge of either party at any time, a full and complete
disclosure of all such information will be made, in writing, to the other party or parties, even if such
interest would not be considered a conflict of interest under Article 4 )commencing with Section 1090) or
Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the Government Code of the State of
California.
27. 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.
28. 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.
III
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
RIZZO CONSTRUCTION INC.
30145 Corte Plata
Temecula, CA 92591
(909) 676-3001
CHARLES M. RIZZO
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EXHIBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City of Temecula. Work will include emergency
repairs, emergency maintenance, maintenance work, andlor minor construction work. The procedure for
assigning work is set forth as follows:
1. Director of Community Services Department ("Director") or his designee shall submit to
Contractor a written "Request for Work". The Request for Work shall include a description of the work to
be completed, the time for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shaH respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost
of material which will be required and the estimated cost of labor and equipment necessary to complete the
work in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work
orally to the Contractor. As soon as practical following the emergency, the Contractor and Director shall in
good faith confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
III III
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EXHIBIT B
LABOR AND EQUIPMENT RATES
Please see attachment
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Rizzo
Construction Inc. PROPOSAL
GENERAL and INSULATION CONTRACTOR
BONDED. INSURED. LICENSE NO. 624315
30145 CORTE PLATA TEMECULA, CA. 92951
OFFICE: (909) 676-3001 . FAX: (909) 695-9210 CEL (909) 322-8807
TO: CITY OF TEMECULA
43200 BUSINESS PARK DR
TEMECULA, CA. 92590
ATT: BRUCE WEDEKING
PROJECT VAFUOUSPROJECTSFOR
MAINTENANCE DIVISION
CITY OF TEMECULA
TEMECULA, CA.
PHONE: (909) 694-6444
PHONE:
DATE:
5/2812003
SPECIFICATIONS: V AFUOUS PROJECTS GENERAL CONTRACT
.
We propose to furnish all labor , material and equipment necessary to complete the following:
TIllS PROPOSAL IS FOR V AFUOUS GENERAL CONSTRUCTION PROJECTS AND REPAIR WORK AT CITY OF
TEMECULA FACILITIES.
PURCHASE ORDERS TO BE WRITTEN FOR EACH.
PROJECTS THAT CAN BE QUOTED FOR AN EXACT AMOUNT SHELL BE DONE SO, OTHER PROJECTS SHALL BE ON A
TIME AND MATERIAL PLUS 20% MARK-UP BASES.
LABOR RATES: REGULAR HOURS 6 AM TO 5 PM $ 48.00 PER HOUR
: NIGHT HOURS 5 PM TO 1 PM $ 57.00 PER HOUR
: WEEKENDS $ 72.00 PER HOUR
EQUlPTMENT RENTAL SHALL BE PER THE GOING RATE UPON A V AIBILITY OF THE EQUlPTMENT NEEDED PLUS
DELIVIERY AND PICK-UP.
IF BUILDING & SAFETY REQUIRES DRAFTED DRAWINGS THE CITY MUST PROVIDE THEM OR THEY WILL BE DONE
BY A ARClllTECT AND ENGINEER AT THEIR GOING RATE..
For the total sum of
(Sales Tax Included) Dollars
Terms: BILLING PER PROJECT, NET 30 DAYS.
Performance of the work to be done in accordance with the best developed industry techniques.
The Company carries Workman's Compensation and Public Liability and Property Damage Insurance
This bid is based on the current price of labor and material. If not accepted within 10 days from date hereof, the right is reserved
to submit a new bid, If the services of an attorney be employed for the enforcement of any of the obligations of the purchaser, or of the
seller, either by suit or otherwise, purchaser agrees to pay reasonable attorney fees.
All orders accepted subject to clearance by our credit department and subject to signature of an officer of the Company at our direction.
All agreements contingent upon strikes, accidents, acts of God, or other delays beyond our control.
NAME OF
OWNER
NAME OF
LENDER
BY
lI11E
ACCEI'1ED
lI11E
DAlE
CITY OF TEMECULA
COMMUNITY SERVICES DEPARTMENT
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
ROUTINE MAINTENANCEICONSTRICTION
THIS CONSTRUCTION CONTRACT, made and entered into as of June 24,2003 by
and between the City of Temecula, ("City") and MURRIETA DEVELOPMENT CO., INC.
("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree
as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance andlor construction upon real and personal property of the City of Temecula.
Work will include emergency repairs, emergency maintenance, maintenance work, and/or minor
construction work. The work under this Agreement is non-exclusive and City reserves the right to hire
other contractors to perform similar work. The procedure for assigning work is set forth in Exhibit" A" ,
Scope of Work, attached hereto and incorporated herein as though set forth in full. The Director of Public
Works ("Director"), or his designee, is authorized to approve the work in accordance with the procedures
of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and
shall terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures
set forth in Exhibit" A". The maximum amount of payment under this Agreement shall be Seventy Five
Thousand Dollars and No Cents ($75,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices
shall be submitted between the first and fifteenth day of each month for services provided during the
previous month. The invoice shall describe the approved work assignment under which the work has been
performed. Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed
fees. If the City disputes any of the Contractor's fees, it shall give written notice to the Contractor within
thirty (30) days of receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor
shall cause a full time experienced Superintendent to be present on the site during all construction and to
oversee and supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be
furnished and work performed and completed subject to the approval of the City or its authorized
representatives, and the quality of the workmanship shall be guaranteed for one year from date of
acceptance.
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6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph
2., above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out
of this contract; the acceptance by Contractor of the final payment shall constitute a waiver of all claims
against the City under or arising out of this Contract except those previously made in writing and request
for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with
each claim for payment.
7 . PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department ofIndustrial Relations. These rates
are available from the California Department Industrial Relations' Internet web site http://www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage
rates as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor
shall forfeit to the District, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for
each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work
done under this contract, by him or by any subcontractor under him, in violation of the provisions of the
Contract.
8. 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 3.
9. 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,
the 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 City 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 (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.
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10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers,
agents and employees may sustain or incur or which may be imposed upon them for injury to or death of
persons, or damage to property arising out of Contractor's negligent or wrongful acts or omissions in
performing or failing to perform under the terms of this Agreement, excepting only liability arising out of
the sole negligence of the City.
11. LIABILITY INSURANCE. 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 coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California
and Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less
than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance
or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or
disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the
insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers,
officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses
and related investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies
are to contain, or be endorsed to contain, the following provisions:
(I) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the 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
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Contractor. The coverage shall contain no special limitations on the scope
of protection afforded to the City, its officers, officials, employees or
volunteers.
(2) For any claims related to this project, the Contractor's insurance coverage
shall be primary insurance as respects the City, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by
the City, its officers, officials, employees or volunteers shall be excess of
the 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, its 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 clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party,
reduced in coverage or in limits except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to the
City.
e. Acceotability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
'" am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and , will comply with such
provisions before commencing the performance of the work of this Contract. "
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the
City nor any of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to
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Contractor for performing services hereunder for the City. The City shall not be liable for compensation or
indemnification to Contractor for injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and
comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at
law or in equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in
the execution of the work under this Contract, as a result of failure to make the necessary independent
examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the
City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or
omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will
such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of
time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any,
to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has
been filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection
and audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection
and acceptance notwithstanding any payments or other prior inspections. Such fmal inspection shall be
made within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex,
age, or handicap.
22. WRITTEN NOTICE. 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:
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To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Murrieta Development Co., Inc.
42540 Rio Nedo
Temecula, California 92590
(909) 719-1680
23. 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 of Temecula.
24. 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.
25. 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 jurisdiction over the City ofTemecula. In the
event of litigation between the parties concerning this Contract, the prevailing party as determined by the
Court, shall be entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROHIBITED INTEREST. No member, officer, or employee of the City of Temecula or
of a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof
during hislher tenure or for one year thereafter.
Furthermore, the contractorlconsultant covenants and agrees to their knowledge that no board member,
officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial
or otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula,
and that if any such interest comes to the knowledge of either party at any time, a full and complete
disclosure of all such information will be made, in writing, to the other party or parties, even if such
interest would not be considered a conflict of interest under Article 4 )commencing with Section 1090) or
Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the Government Code of the State of
California.
27. 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.
28. 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.
III
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first above written.
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CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
MURRlEA DEVELOPMENT CO., INC.
42540 Rio Nedo
Temecula, CA 92590
(909) 719-1680
DENNIS T. CISSELL, PRESIDENT
EXHmIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City of Temecula. Work will include emergency
repairs, emergency maintenance, maintenance work, andlor minor construction work. The procedure for
assigning work is set forth as follows:
1. Director of Community Services Department ("Director") or his designee shall submit to
Contractor a written "Request for Work". The Request for Work shall include a description of the work to
be completed, the time for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost
of material which will be required and the estimated cost of labor and equipment necessary to complete the
work in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work
orally to the Contractor. As soon as practical following the emergency, the Contractor and Director shall in
good faith confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
III 11/
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EXHIBIT B
LABOR AND EQUIPMENT RATES
Please see attachment
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MURRIETA DEVELOPMENT CO.. INC.
RENTAL RATES - OPERATED DENNIS T. CISSEll, PRESIDENT
Prevailing Wages TODD K. CLOSE, VICE PRESIDENT
330 CAT $ 175.00 /HR 5/12/2003
345 CAT $ 205.00 /HR file:/MlSC/n:ntalratell.xls
420 CAT $ 95.00 /HR
4300 LINKBELT $ 175.00 iHR
COMPACTION EQUIPMENT
COMPACTION WHEEL-ON ANY EQUIPMENT $ 40.00 /HR
REX COMPACTOR $ 110.00 /HR
STOMPER $ 105.00 /HR
WACKER /VIBRATORY PLATE $ 100.00 /DAY
DOZERS
650 JOHN DEERE wjSLOPE BOARD $ 105.00 /HR
b-4H CATw /SLOFE BOARD $ 105.00 /HR
D-6M CAT $ 125.00 /HR
D-6R CAT $ 135.00 /HR
LOADERS
926 CAT (1/2 Yard Bucket) $ 105.00 /HR
950 CAT (3/4 Yard Bucket) $ 115.00 /HR
SKIPLOADERS
JOHN DEERE 21O-L $ 85.00 /HR
MASSONRY -FERGUSON MF50 $ 85.00 /HR
AIR COMPllliSSORS / JACK HAMMERS $ 150.00 /PAY
AIR TESTING /PRESSURE TESTING (Equipment Only) $ 150.00 /PAY
BLOWER $ 75.00 /DAY
CEMENT MIXER $ 50.00 /DAY
CHOP SAW $ 100.00 /DAY
CREW TRUCK $ 25.00 /HR
DUMP TRUCK $ 75.00 /HR
DUMP TRUCK w /TRAILER $ 95.00 /HR
END DUMP $ 95.00 /HR
FOREMAN $ 65.00 /HR
GAS DETECTION (Equipment Only) $ 50.00 /DAY
GENERATOR. HAMMER DRILL $ 55.00 /DAY
GRADE CHECKER $ 40.00 /HR
GRINDER $ 25.00 /DAY
HYDROSTATIC PUMP $ 100.00 IDAY
LABORER $ 40.00 /HR
LEAK WCATING (Equipment Only) $ 150.00 /DAY
LOWBED $ 95.00 /HR
OPERATOR $ 43.00 /HR
REED SCREEN ALL $ 50.00 /HR
ROLLER $ 200.00 /DAY
SILVER SOLDERtNG $ 55.00 /HR
TRASH PUMPS & HOSES $ 100.00 /DAY
TRUCK & TRANSFER $ 90.00 /HR
WATER TRUCK $ 75.00 /HR
WAYNE'S BALL (Equipment Only) $ 75.00 /DAY
WELDER $ 65.00 /HR
ALL HOURS IN EXCESS OF 8 HOURS PER DAY AND/OR 40 HOURS PER WEEK WILL BE CHARGED AT TIME
AND A HALF. THERE WILL BE NO CHARGE FOR OPERATOR WITH RENTAL OF EQUIPMENT WITH THE
EXCEPTION OF OVERTIME. OPERATOR OVERTIME WILL BE CHARGED AT HALF TIME HOURLY RATE TO
DEVELOPER. TIME & MATERIAL SERVICES WILL BE BILLED AT COST PLUS 15% PROFIT AND OVERHEAD.
42540 RIO NEDO, TEMECULA, CA 92590 . CALIF. Lie. #558592 . (909) 719-1680 . FAX (909) 719-1684
CITY OF TEMECULA
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
ROUTINE MAINTENANCEICONSTRICTION
THIS CONSTRUCTION CONTRACT, made and entered into as of June 24,2003 by
and between the City of Temecula, ("City") and BECKER ENGINEERING ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance andlor construction upon real and personal property of the City of Temecula.
Work will include emergency repairs, emergency maintenance, maintenance work, andlor minor
construction work. The work under this Agreement is non-exclusive and City reserves the right to hire
other contractors to perform similar work. The procedure for assigning work is set forth in Exhibit" A" ,
Scope of Work, attached hereto and incorporated herein as though set forth in full. The Director of Public
Works ("Director"), or his designee, is authorized to approve the work in accordance with the procedures
of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and
shall terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures
set forth in Exhibit" A ". The maximum amount of payment under this Agreement shall be Seventy Five
Thousand Dollars and No Cents ($75,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices
shall be submitted between the first and fifteenth day of each month for services provided during the
previous month. The invoice shall describe the approved work assignment under which the work has been
performed. Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed
fees. If the City disputes any of the Contractor's fees, it shall give written notice to the Contractor within
thirty (30) days of receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor
shall cause a full time experienced Superintendent to be present on the site during all construction and to
oversee and supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be
furnished and work performed and completed subject to the approval of the City or its authorized
representatives, and the quality of the workmanship shall be guaranteed for one year from date of
acceptance.
6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph
2., above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out
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Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for
payment.
7. PREV AILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director ofthe Department of Industrial Relations. These rates are
available from the California Department Industrial Relations' Internet web site http://www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates
as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6,
and 1813 of the Labor Code. Pursuantto the provisions of 1775 of the Labor Code, Contractor shall forfeit to
the District, as a penalty, the sum of$25 .00 for each calendar day, or portion thereof, for each laborer, worker,
or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by
him or by any subcontractor under him, in violation of the provisions of the Contract.
8. 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 3.
9. 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, the
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 City 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 (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.
10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Contractor's negligent or wrongful acts or omissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
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11. LIABILITY INSURANCE. 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 Scone of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California and
Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this projectllocation or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses and related
investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the 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, its 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, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by the
City, its officers, officials, employees or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The 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 clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A: VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract."
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the City nor any
of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for the City. The City shall not be liable for compensation or indemnification to Contractor for
injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
R\KANIGOWJ\Contractor agreement\Becker 03-04 Agrmt.doc
examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the City
for purposes ofletting this Contract out to proposal will be accepted as an excuse for any failure or omission on
the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any, to
be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been
filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and
audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and
acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made
within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or
handicap.
22. WRITTEN NOTICE. Any notices which either party may desire to give to the other party
under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Becker Engineering
P.O. Box 890365
Temecula, California 92589-0365
(909) 731-3991
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23. 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 of Temecula.
24. 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.
25. 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 govem the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in
the municipal, superior, or federal district court with jurisdiction over the City ofTemecula. In the event of
litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROHIBITED INTEREST. No member, officer, or employee of the CityofTemecula or of
a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during
hislher tenure or for one year thereafter.
Furthermore, the contractorlconsultant covenants and agrees to their knowledge that no board member, officer
or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula, and
that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest would not be
considered a conflict of interest under Article 4 )commencing with Section 1090) or Article 4.6 (commencing
with Section 1220) of Division 4 of Title I of the Government Code of the State of California.
27. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the
parties relating to the obligations of the parties described in this Agreement. Ail 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.
28. AUTHORITY TO EXECUTE TIDS 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.
//1
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
BECKER ENGINEERING
P.O. Box 890365
Temecula, CA 92589-0365
(909) 731-3991
Walter K. Becker, Owner
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EXlDBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City of Temecula. Work will include emergency repairs,
emergency maintenance, maintenance work, and/or minor construction work. The procedure for assigning
work is set forth as follows:
1. Director of Community Services Department ("Director") or his designee shall submit to
Contractor a written "Request for Work". The Request for Work shall include a description of the work to be
completed, the time for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost of
material which will be required and the estimated cost oflabor and equipment necessary to complete the work
in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work orally to
the Contractor. As soon as practical following the emergency, the Contractor and Director shall in good faith
confIrm in writing the scope of the emergency work undertaken.
4.
work.
1// //1
Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
The performance of the work shall be pursuant to the terms of this Agreement.
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EXHIBIT B
LABOR AND EQUIPMENT RATES
Please see attachment
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BECKER
.ENGKNEElRKNG<
CA License # 683396-A
PAVING
P.O. Box 890365 . Temecula, CA 92589-0365
(909) 731-3991
CONCRETE . DEMOLITIONS
GRADING .
.
PROPOSAL & CONTRACT-
SHEET TWO
LABOR RATES
SUPERINTENDENT wi 1 TON TRUCK
S.T. O.T.
FOREMAN
wi 3/4
TRUCK
$ 61.85
$ 57.25
$ 47.45
$92.25
$83.50
$68.05
GENERAL LABORER
NOTE: THESE LABOR RATES REFLECT LATEST RAISES IN
P.W. SCALE.
BARE EQUIPMENT
545 EXCAVATOR $ 51.50 P.H.
450 DOZER $ 51.-50 "
SKIPLOADER $ 39.65 "
310 BACKHOE $ 51.50 "
763 BOBCAT $ 43.80 "
763 BOBCAT wi BREAKER $ 67.50 "
S-250 BOBCAT $ 51.50 "
S-250 BOBCAT wi BREAKER $ 75.20 "
BOBTAIL DUMP $ 51.50 "
1T03 TON ROLLER $ 26.80 "
3T05 TON ROLLER $ 39.65 "
VIBRATORY PLATE $ 21.65 "
.WACKER TAMP $ 21.65 "
WATER TRUCK $ 56.65 "
AREA MOVE INS $ 87.55 "
ALL MATERIALS AND RATES AT A.P.W. STANDARD BOOK RATES.
CITY OF TEMECULA
COMMUNITY SERVICES DEPARTMENT
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
ROUTINE MAINTENANCE/CONSTRICTION
THIS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by
and between the City of Temecula, ("City") and POWER DISTRIBUTORS, INC. ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance andlor construction upon real and personal property of the City of Temecula.
Work will include emergency repairs, emergency maintenance, maintenance work, andlor minor
construction work. The work under this Agreement is non-exclusive and City reserves the right to hire
other contractors to perform similar work. The procedure for assigning work is set forth in Exhibit" A " ,
Scope of Work, attached hereto and incorporated herein as though set forth in full. The Director of Public
Works ("Director"), or his designee, is authorized to approve the work in accordance with the procedures
of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and
shall terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures
set forth in Exhibit" A". The maximum amount of payment under this Agreement shall be Fifty Thousand
Dollars and No Cents ($50,000.00) unless a higher amount is approved by the City Council by amendment
to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices
shall be submitted between the first and fifteenth day of each month for services provided during the
previous month. The invoice shall describe the approved work assignment under which the work has been
performed. Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed
fees. If the City disputes any of the Contractor's fees, it shall give written notice to the Contractor within
thirty (30) days of receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor
shall cause a full time experienced Superintendent to be present on the site during all construction and to
oversee and supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be
furnished and work performed and completed subject to the approval of the City or its authorized
representatives, and the quality of the workmanship shall be guaranteed for one year from date of
acceptance.
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6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph
2., above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out
of this contract; the acceptance by Contractor of the fmal payment shall constitute a waiver of all claims
against the City under or arising out of this Contract except those previously made in writing and request
for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with
each claim for payment.
7. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates
are available from the California Department Industrial Relations' Internet web site http://www.dir.ca.gov .
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage
rates as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor
shall forfeit to the District, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for
each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work
done under this contract, by him or by any subcontractor under him, in violation of the provisions of the
Contract.
8. 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 3.
9. 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,
the 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 City 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 (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.
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10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers,
agents and employees may sustain or incur or which may be imposed upon them for injury to or death of
persons, or damage to property arising out of Contractor's negligent or wrongful acts or omissions in
performing or failing to perform under the terms of this Agreement, excepting only liability arising out of
the sole negligence of the City.
11. LIABILITY INSURANCE. 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 coverage
(occurrence form CG 000 1).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California
and Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less
than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance
or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or
disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the
insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers,
officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies
are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the 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
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Contractor. The coverage shall contain no special limitations on the scope
of protection afforded to the City, its officers, officials, employees or
volunteers.
(2) For any claims related to this project, the Contractor's insurance coverage
shall be primary insurance as respects the City, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by
the City, its officers, officials, employees or volunteers shall be excess of
the 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, its 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 clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party,
reduced in coverage or in limits except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to the
City.
e. Acceotabilitv of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract. "
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the
City nor any of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to
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Contractor for performing services hereunder for the City. The City shall not be liable for compensation or
indemnification to Contractor for injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and
comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at
law or in equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in
the execution of the work under this Contract, as a result of failure to make the necessary independent
examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the
City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or
omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will
such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of
time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any,
to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has
been filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection
and audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to fInal inspection
and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be
made within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex,
age, or handicap.
22. WRITTEN NOTICE. 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:
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To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Power Distributors, Inc.
15245 East Proctor Ave
City ofIndustry, California 91745
(626) 855-2580
23. 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 of Temecula.
24. 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.
25. 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 jurisdiction over the City of Temecula. In the
event of litigation between the parties concerning this Contract, the prevailing party as determined by the
Court, shall be entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROHIBITED INTEREST. No member, officer, or employee of the City of Temecula or
of a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof
during hislher tenure or for one year thereafter.
Furthermore, the contractorlconsultant covenants and agrees to their knowledge that no board member,
officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, fInancial
or otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula,
and that if any such interest comes to the knowledge of either party at any time, a full and complete
disclosure of all such information will be made, in writing, to the other party or parties, even if such
interest would not be considered a conflict of interest under Article 4 )commencing with Section 1090) or
Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the Government Code of the State of
California.
27. 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.
28. 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.
III
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
POWER DISTRIBUTORS INC.
15245 East Proctor Ave
City of Industry, CA 91745
(626) 855-2580
POWER DISTRIBUTORS, INC.
R:\KANlGOWI\Contractor agreement\Power Distributors Inc.2003.doc
EXHmIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance andlor
construction upon real and personal property of the City of Temecula. Work will include emergency
repairs, emergency maintenance, maintenance work, andlor minor construction work. The procedure for
assigning work is set forth as follows:
1. Director of Community Services Department ("Director") or his designee shall submit to
Contractor a written "Request for Work". The Request for Work shall include a description of the work to
be completed, the time for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost
of material which will be required and the estimated cost of labor and equipment necessary to complete the
work in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work
orally to the Contractor. As soon as practical following the emergency, the Contractor and Director shall in
good faith confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
III III
R:\KANIGOWJ\CoDn-actor agreement\Power Distributors Inc.2003.doc
EXHIBIT B
LABOR AND EQUIPMENT RATES
Please see attachment
R:\KANIGOWJ\Contractor agreement\Power Distributors Inc.2003.doc
MAY-30-2003 11:50 FROM POWER DISTRIBUTORS
TO
19096946488 P.01
wer
stributors
INCORPORATED
PANAFAX TRANSMITTAL
15245 E. Proctor Ave.- Industry. Ca. 91745
FAX NUMBER:
PHONE NUMBER:
(626) 855-2589
(626) 855-2580
DATE:
TO:
FROM:
REGARDING:
May. 30, 2003
Bruce Wedeking. Maintenance Supervisor
Barry LeFave
Letter of Introduction
D FOR YOUR COMMENTS
D AS YOU REQUE~TED
GJ PLEASE CALL ME ABOUT THIS
D AS WE DISCUSS~D
NUMBER OF PAGES INCLUDING THIS COVER SHEET:
3
MESSAGE:
Attached is a copy of the letter and labor rate information that youlrequested.
,
The originals will be sent to you via Ihe US Mail today.
Please call me jf you need any additional information.
Thank Youl
NOTE:
IF YOU DID NOT RECEIVE AlL THE PAGES, OR IF YOU HAVE ANY
QUESTIONS, PLEASE CALL THE PHONE NUMBER LISTED ABOVE.
'-.
MAY-30-2003 11'50 FROM POWER DISTRIBUTORS
TO
19096946488 P.02
-----
ST. L1C. NO. 276955
wer
tributors
i
15245 EAST PROCTOR AVE. . CITY OF INDUSTRY. CA 91745
, (626) 855-2580
FAX (626) 855-2589
May 30, 2003
/.
City of T emecula
ATT: Bruce Wedeking. Maintenance Supervisor
43200 Business Park Drive
P.O. Box 9033
Temecula. CA 92589-9033
Regarding: Lighting Services
Dear Bruce: .
I would like to introduce Power Distributors, Inc. and our entire line of serviJs. We are
a lighting, sign and electrical maintenance company. We are recognized in !hese fields
with over 50 years experience in all phases of interior and exterior lighting ~aintenance.
Our company fleet of vehicles consists of interior lighting service trucks, eledmcal
service vehicles, ladder trucks and cranes that will accommodate .up to 90 fJet in height.
With our fleet we can meet any and all service needs. .
,
All service requests are handled within 48 hours and upon request 24-hour $mergency
service is also offered. The servicing areas our company covers are Los Angeles,
Orange, San Bernardino. Riverside and Ventura Counties and sections of Sian Diego
County. .'
I
We would like to be the lighting and electrical company you call when you h~ve service
or emergency needs. I am available to answer any questions you may hav~ and discuss
how our services can benefit your company. I can be reached at (626) 855-i2580 from
8:00 am to 5:00 pm Monday through Friday. . ,
,
Enclosed for your information are our basic service rates. We work hard to ~eep our
prices competitive while offering quick. competent services. It is our goal to!be the best
in our field. I look forward to your call. .
Sincerely.
~Gt'~
Barry A. LeFave
Vice President
BAL:ed
Enclosure
ELECTRICAL CONTRACTOR. LIGHTING AND SIGN MAINTENANC~
MHY-5~-~03 11:50 FROM POWER DISTRIBUTORS
TO
19096946488 P.03
April 1, 2003
LABOR RATES
;
I
,
i
Interior Lighting/Service Tech, $38.50/Hourl
Ladder Truck up to 50' $55.00/Hourl
Crane up to 65' $70.00/Houri
Crane up to 90' * $90.00/Hourl
Electrician $50.00/Hour!
* Any lighting above the gO-foot level, price will be ne~otiated at
that time. i
,
Schedule - "El"
CITY OF TEMECULA
COMMUNITY SERVICES DEPARTMENT
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
ROUTINE MAINTENANCEICONSTRICTION
THIS CONSTRUCTION CONTRACT, made and entered into as of June 24,2003 by
and between the City of Temecula, ("City") and STRONG'S PAINTING ("Contractor"). In consideration
of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance andlor construction upon real and personal property of the City of Temecula.
Work will include emergency repairs, emergency maintenance, maintenance work, andlor minor
construction work. The work under this Agreement is non-exclusive and City reserves the right to hire
other contractors to perform similar work. The procedure for assigning work is set forth in Exhibit" A " ,
Scope of Work, attached hereto and incorporated herein as though set forth in full. The Director of Public
Works ("Director"), or his designee, is authorized to approve the work in accordance with the procedures
of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and
shall terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures
set forth in Exhibit" A". The maximum amount of payment under this Agreement shall be One Hundred
Thousand Dollars and No Cents ($100,000.00) unless a higher amount is approved by the City Council by
amendment to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices
shall be submitted between the first and fifteenth day of each month for services provided during the
previous month. The invoice shall describe the approved work assignment under which the work has been
performed. Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed
fees. If the City disputes any of the Contractor's fees, it shall give written notice to the Contractor within
thirty (30) days of receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor
shall cause a full time experienced Superintendent to be present on the site during all construction and to
oversee and supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be
furnished and work performed and completed subject to the approval of the City or its authorized
representatives, and the quality of the workmanship shall be guaranteed for one year from date of
acceptance.
R:\KANIGOWJ\Contractor agreement\Strong's Painting2003..()4.doc
6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph
2., above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out
of this contract; the acceptance by Contractor of the fmal payment shall constitute a waiver of all claims
against the City under or arising out of this Contract except those previously made in writing and request
for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with
each claim for payment.
7. PREV AILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates
are available from the California Department Industrial Relations' Internet web site htlp:llwww.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage
rates as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor
shall forfeit to the District, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for
each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work
done under this contract, by him or by any subcontractor under him, in violation of the provisions of the
Contract.
8. 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 3.
9. 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,
the 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 City 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 (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.
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10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers,
agents and employees may sustain or incur or which may be imposed upon them for injury to or death of
persons, or damage to property arising out of Contractor's negligent or wrongful acts or omissions in
performing or failing to perform under the terms of this Agreement, excepting only liability arising out of
the sole negligence of the City.
11. LIABILITY INSURANCE. 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 coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California
and Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less
than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance
or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or
disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the
insurer shall reduce or elintinate such deductibles or self-insured retentions as respects the City, its officers,
officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies
are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the 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
R:\KANIGOWJ\ContraclOr agreementlStrong's Painting2003-Q4.doc
Contractor. The coverage shall contain no special limitations on the scope
of protection afforded to the City, its officers, officials, employees or
volunteers.
(2) For any claims related to this project, the Contractor's insurance coverage
shall be primary insurance as respects the City, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by
the City, its officers, officials, employees or volunteers shall be excess of
the 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, its 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 clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party,
reduced in coverage or in limits except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to the
City.
e. Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract. "
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the
City nor any of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to
R:\KANIGOWJ\Contractor agreement\Strong's Painting2003-04.doc
Contractor for performing services hereunder for the City. The City shall not be liable for compensation or
indemnification to Contractor for injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSmILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and
comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at
law or in equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in
the execution of the work under this Contract, as a result of failure to make the necessary independent
examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the
City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or
omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will
such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of
time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any,
to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has
been filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection
and audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection
and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be
made within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex,
age, or handicap.
22. WRITTEN NOTICE. 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:
R:\KANIGOWJ\Contractor agreement\Strong's Painting2003-04.doc
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Strong's Painting
31265 Saddleback Lane
Menifee, California 92584
(909) 679-4554
23. 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 of Temecula.
24. 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.
25. 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 jurisdiction over the City of Temecula. In the
event of litigation between the parties concerning this Contract, the prevailing party as determined by the
Court, shall be entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROHIBITED INTEREST. No member, officer, or employee of the City of Temecula or
of a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof
during hislher tenure or for one year thereafter.
Furthermore, the contractorlconsultant covenants and agrees to their knowledge that no board member,
officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial
or otherwise, in this transaction, or in the business of the contracting party other than the City ofTemecula,
and that if any such interest comes to the knowledge of either party at any time, a full and complete
disclosure of all such information will be made, in writing, to the other party or parties, even if such
interest would not be considered a conflict of interest under Article 4 )commencing with Section 1090) or
Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the Government Code of the State of
California.
27. 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.
28. 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.
III
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
STRONG'S PAINTING
31265 Saddleback Lane
Menifee, CA 92584
(909) 679-4554
STRONG'S PAINTING
R:\KANIGOWJ\Contractor agreement\Strong's Painting2003-04.doc
EXHIBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance andlor
construction upon real and personal property of the City of Temecula. Work will include emergency
repairs, emergency maintenance, maintenance work, andlor minor construction work. The procedure for
assigning work is set forth as follows:
1. Director of Community Services Department ("Director") or his designee shall submit to
Contractor a written "Request for Work". The Request for Work shall include a description of the work to
be completed, the time for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost
of material which will be required and the estimated cost of labor and equipment necessary to complete the
work in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work
orally to the Contractor. As soon as practical following the emergency, the Contractor and Director shall in
good faith confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
II{ III
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EXHIBIT B
LABOR AND EQUIPMENT RATES
Please see attachment
R:\KANlGOWJ\Contractor agreement\Strong's Painting2003-04.doc
/"
License # 687275
.(909) 679.-~4
MayU. 2G03
STRONG'S PAINTING
31265 SADDLEBACK LANE
MENIFEE, CA 92584
FAX (909)679-4554*51
City ofTemeeula
43200 Business Park Dr.
Temeeula, Ca. 92589-9033
Attn: Bruce Wedeking
Maintenance Supervisor
Re: Time and Material sheet
Strong's Painting has been in business for 27 years, and is family owned
and operated. We speeialize in interior/exterior painting, small drywall
repair, texturing, stucco repair, power washing, wall paper removal and
hanging and light maintenance work.
We currently carry a $1,000.00 per occurance policy naming the City of
Temeeula as an additional insured and will send upon request. We are
also members oftbe Better Business Bureau and bold a state
contractors license.
Hourly rate: $30.00 per hour
Holiday and weekend rate: $45.00 per hour
Mark up on parts, materials and equipment is no more than 10%
Thank you,
Gary Strong
Strong's Painting
CITY OF TEMECULA
COMMUNITY SERVICES DEPARTMENT
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
ROUTINE MAINTENANCEICONSTRICTION
THIS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by
and between the City of Temecula, ("City") and IMPERIAL PAVING CO. ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance andlor construction upon real and personal property of the City of Temecula.
Work will include emergency repairs, emergency maintenance, maintenance work, andlor minor
construction work. The work under this Agreement is non-exclusive and City reserves the right to hire
other contractors to perform similar work. The procedure for assigning work is set forth in Exhibit" A " ,
Scope of Work, attached hereto and incorporated herein as though set forth in full. The Director of Public
Works ("Director"), or his designee, is authorized to approve the work in accordance with the procedures
of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and
shall terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures
set forth in Exhibit" A". The maximum amount of payment under this Agreement shall be Fifty Thousand
Dollars and No Cents ($50,000.00) unless a higher amount is approved by the City Council by amendment
to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices
shall be submitted between the first and fifteenth day of each month for services provided during the
previous month. The invoice shall describe the approved work assignment under which the work has been
performed. Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed
fees. If the City disputes any of the Contractor's fees, it shall give written notice to the Contractor within
thirty (30) days of receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor
shall cause a full time experienced Superintendent to be present on the site during all construction and to
oversee and supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be
furnished and work performed and completed subject to the approval of the City or its authorized
representatives, and the quality of the workmanship shall be guaranteed for one year from date of
acceptance.
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City under or arising out of this Contract except those previously made in writing and request for payment.
Contractor shall be required to execute an affidavit, release and indenmify agreement with each claim for
payment.
7 . PREVAILING WAGES. Pursuant to the provisions of Section 1773 ofthe Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director ofthe Department of Industrial Relations. These rates are
available from the California Department Industrial Relations' Internet web site http://www.dir.ca.gov.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates
as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6,
and 1813 of the Labor Code. Pursuant to the provisions of1775 of the Labor Code, Contractor shall forfeitto
the District, as a penalty, the sum of$25.00 for each calendar day, or portion thereof, for each laborer, worker,
or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by
him or by any subcontractor under him, in violation of the provisions of the Contract.
8. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or terntinate
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 terntinated 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 3.
9. 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, the
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 ofthe Contractor, it shall not be considered a default.
b. If the City 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 ofthe default. The Contractor shall have (10) days after service upon it of said notice in which to cure
the default by rendering a satisfactory performance. In the event that the 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.
10. INDEMNIFICATION. The Contractor agrees to defend, indenmify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents
and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or
damage to property arising out of Contractor's negligent or wrongful acts or omissions in performing or failing
to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
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11. LIABILITY INSURANCE. 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 Scooe of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California and
Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this projectllocation or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,
employees and volunteers; or the Contractor shall procure a bond guaranteeing payment oflosses and related
investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies are
to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be covered
as insureds as respects: liability arising out of activities performed by or on
behalf of the 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, its 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, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by the
City, its officers, officials, employees or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
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(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees or volunteers.
(4) The 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 clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt requested, has been given to the City.
e. Acceotability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:Vll, unless otherwise acceptable to the City.
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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract."
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the City nor any
of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for the City. The City shall not be liable for compensation or indemnification to Contractor for
injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSffiILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply
with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the
execution of the work under this Contract, as a result of failure to make the necessary independent
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examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the City
for purposes ofletting this Contract out to proposal will be accepted as an excuse for any failure or omission on
the part ofthe Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any, to
be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been
filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and
audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and
acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made
within a reasonable time after completion ofthe Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or
handicap.
22. WRITTEN NOTICE. Any notices which either party may desire to give to the other party
under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a
reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid,
return receipt requested, addressed to the address of the party as set forth below or at any other address as that
party may later designate by Notice:
To City:
City ofTemecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Imperial Paving Co.
P.O. BOX 9033
Temecula, California 92589-9033
(562) 944-0975
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23. 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 of Temecula.
24. 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.
25. 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 jurisdiction over the City ofTemecula. In the event of
litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be
entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROHIBITED INTEREST. No member, officer, or employee of the CityofTemecula or of
a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during
hislher tenure or for one year thereafter.
Furthermore, the contractorlconsultant covenants and agrees to their knowledge that no board member, officer
or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula, and
that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all
such information will be made, in writing, to the other party or parties, even if such interest would not be
considered a conflict of interest under Article 4 )commencing with Section 1090) or Article 4.6 (commencing
with Section 1220) ofDiyjsion 4 of Title I of the Government Code of the State of California.
27. 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.
28. 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
IMPERIAL PAVING CO.
13555 E. Imperial Hwy
Whittier California, 90605
(562) 944-0975
IMPERIAL PAVING CO.
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EXlllBIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance and/or
construction upon real and personal property of the City ofTemecula. Work will include emergency repairs,
emergency maintenance, maintenance work, and/or minor construction work. The procedure for assigning
work is set forth as follows:
1. Director of Community Services Department ("Director") or his designee shall submit to
Contractor a written "Request for Work". The Request for Work shall include a description of the work to be
completed, the time for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specif'y the cost of
material which will be required and the estimated cost oflabor and equipment necessary to complete the work
in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work orally to
the Contractor. As soon as practical following the emergency, the Contractor and Director shall in good faith
confirm in writing the scope of the emergency work undertaken.
4.
work.
11/ 1/1
Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
The performance of the work shall be pursuant to the terms ofthis Agreement.
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EXHIBIT B
LABOR AND EQUIPMENT RATES
Please see attachment
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CITY OF TEMECULA
P.O. BOX 9033
TEMECULA, CA 92589-9033
RE: TIME AND MATERIAL SHEET
ATfENfION: Bruce Wedeking
LABOR BREAKDOWN
ALL LABOR _ _ _ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ 45.00 PER HOUR
OVERTIME 1 Y, TIME (AFfER 8HRSfSATURDA YS) - - - - - - - - - - - - - - -$ 67.50 PER HOUR
DOUBLETIME 2 TIME (SUNDA YSIHOLIDA YS) - - 00 -- - - - 00 00 - - - - -$ 90.00 PER HOUR
EOUIPMENT BREAKDOWN (DOES NOT INCLUDE LABOR)
FLATBED TRUCK WTI1I COMPRESSOR MOUNT - - - - - - - - - - - - - - - - $ 325.00 PER DAY
BOB TAIL TRUCK 9 -11 YARDS - - - uu _u - - 00 ---- 00 00- - - -- 00$ 315.00 PER DAY
CONCRETE FLATBED TRUCK - - - - - - - - - - - - - - - - - 00 - - - - - - - - - - - $ 300.00 PER DAY
DUMP TRUCK & PUP TRAILER- - 00 _ 00___00 _ _ - ___ 00 00- ____ 00 $ 390.00 PER DAY
AIR COMPRESSOR - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - . - - - - - - - $ 150.00 PER DAY
WATER TRUCK- - - -00 _ _ - - - - - ~__ - ___ _U 00-- --- -- 00 - -- -- 00$ 275.ooPERDAY
FLATBED TRUCK WTI1I 3-5 TON ROILER COMBO (MINIMUM) - - - - $ 505.00 PER DAY
DUMP TRUCK WTI1I SKIPLOADER & TRAILER COMBO - - - - - - - - - $ 505.00 PER DAY
10-12 TON ROLLER INCLUDING TRAILER - - u_ ~ - - -- -- - -- - - -- - $ 250.00 PER DAY
3-5 TON ROLLER INCLUDING TRAILER - - - - - - ~. . - - - - - - - - - - - - - $ 245.00 PER DAY
BERM MAClDNE MlN1MUM CHARGE - - - -- - - - - - -- - - - 00 - 00 - - - $ 150.00 PER DAY
BOBCAT WTI1I BUCKET - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ 500.00 PER DAY
BOBCAT WTI1I GRINDER- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ 550.00 PER DAY
ARROW BOARD WTI1ITRUCK- - -- ---- --- - -- - ---- ---- --- - - -$ 250.00 PER DAY
STANDARD SET (COMMON REPAIR CREw)
FOUR MAN CREW
SKIPLOADER
DUMPTRUCK
3-5 TON ROLLER
FLATBED WlTII COMPRESSOR & TOOLS - - - - - - - - - - - - - - - - - - - -$ 2,600.00 PER DAY
LESS TRAN8 HRS (2HRMlNIMUM) - - - ---- --- --- - - -- --- - - - - $ 400.00 PER HOUR
MATERIALS
ASPHU\LT--------------------------------------------$
ASPHU\LT PLANT OPENING ON SATURDAYS - - - - - - - - - - - - - - - - $
BASE ROCK CLASS II - - ___ 0000 00- ____ -00 - - - ____ ____ 00___$
TACK MATERIAL- - __ - - __ - --~-- - 00- - ___ - - - - __ - - --- -00- $
CONCRETE-------------..--------------------------- $
CONCRETE AFfER 4 YARDS - - - - 00- ~ ___ - ___ 00 - -- -- --- - - - - $
NOTE: ABOVE PRICES SUBJECT TO PUC CHANGE.
20% MARK UP ON SUBCONTRACTORS.
45.00 PER TON
1,000.00
12.50 PER TON
1.60 PER GAL
425.00 MIN. LOAD
75.00 PERY ARD
NOTE: IMPERIAL PAVING PROVIDES TIIE FOLLOWING SERVICES:
EXCAVATION, GRADING, PAVING, CONCRETE, SEAL COATING AND
STRIPING.
(562) 944-0975 · (714) 523-4492 · (800) 634-3923 · Fax (562) 944-0984
13555 E. Imperial Hwy., Whittier, California 90605
CITY OF TEMECULA
COMMUNITY SERVICES DEPARTMENT
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
ROUTINE MAINTENANCEICONSTRICTION
THIS CONSTRUCTION CONTRACT, made and entered into as of June 24, 2003 by
and between the City of Temecula, ("City") and NPG, INC. ("Contractor"). In consideration of the mutual
covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance andlor construction upon real and personal property of the City of Temecula.
Work will include emergency repairs, emergency maintenance, maintenance work, andlor minor
construction work. The work under this Agreement is non-exclusive and City reserves the right to hire
other contractors to perform similar work. The procedure for assigning work is set forth in Exhibit" A" ,
Scope of Work, attached hereto and incorporated herein as though set forth in full. The Director of Public
Works ("Director"), or his designee, is authorized to approve the work in accordance with the procedures
of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and
shall terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures
set forth in Exhibit" A ". The maximum amount of payment under this Agreement shall be Fifty Thousand
Dollars and No Cents ($50,000.00) unless a higher amount is approved by the City Council by amendment
to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices
shall be submitted between the first and fifteenth day of each month for services provided during the
previous month. The invoice shall describe the approved work assignment under which the work has been
performed. Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed
fees. If the City disputes any of the Contractor's fees, it shall give written notice to the Contractor within
thirty (30) days of receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor
shall cause a full time experienced Superintendent to be present on the site during all construction and to
oversee and supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be
furnished and work performed and completed subject to the approval of the City or its authorized
representatives, and the quality of the workmanship shall be guaranteed for one year from date of
acceptance.
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6. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph
2., above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out
of this contract; the acceptance by Contractor of the final payment shall constitute a waiver of all claims
against the City under or arising out of this Contract except those previously made in writing and request
for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with
each claim for payment.
7. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates
are available from the California Department Industrial Relations' Internet web site htlp:llwww.dir.ca.gov .
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage
rates as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor
shall forfeit to the District, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for
each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work
done under this contract, by him or by any subcontractor under him, in violation of the provisions of the
Contract.
8. 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 oftermination, 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 3.
9. 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,
the City shall have no obligation or duty to continue compensating Contractor for any work perfonned 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 City 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 (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 oftime, 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.
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10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers,
agents and employees may sustain or incur or which may be imposed upon them for injury to or death of
persons, or damage to property arising out of Contractor's negligent or wrongful acts or omissions in
performing or failing to perform under the terms of this Agreement, excepting only liability arising out of
the sole negligence of the City.
11. LIABILITY INSURANCE. 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 ScoDe of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California
and Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less
than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance
or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or
disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the
insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers,
officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies
are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the 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
R:\KANIGOWJ\Contractor agreement\NPG ,Inc.2003.doc
Contractor. The coverage shall contain no special limitations on the scope
of protection afforded to the City, its officers, officials, employees or
volunteers.
(2) For any claims related to this project, the Contractor's insurance coverage
shall be primary insurance as respects the City, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by
the City, its officers, officials, employees or volunteers shall be excess of
the 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, its 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 clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party,
reduced in coverage or in limits except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to the
City.
e. Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract. "
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the
City nor any of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to
R:\KANIGOWJ\Contractor agreement\NPG,Inc.2003.doc
Contractor for performing services hereunder for the City. The City shall not be liable for compensation or
indemnification to Contractor for injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and
comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at
law or in equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in
the execution of the work under this Contract, as a result of failure to make the necessary independent
examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the
City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or
omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will
such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of
time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all frrms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any,
to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has
been filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection
and audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection
and acceptance notwithstanding any payments or other prior inspections. Such fmal inspection shall be
made within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex,
age, or handicap.
22. WRITTEN NOTICE. 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:
R:\KANIGOWJ\Contractor agreement\NPG ,Inc.2003.doc
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
NPG, Inc.
1354 Jet Way
Perris, California 92572
(909) 940-0200
23. 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 of Temecula.
24. 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.
25. 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 jurisdiction over the City ofTemecula. In the
event of litigation between the parties concerning this Contract, the prevailing party as determined by the
Court, shall be entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROHIBITED INTEREST. No member, officer, or employee of the City of Temecula or
of a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof
during hislher tenure or for one year thereafter.
Furthermore, the contractorlconsultant covenants and agrees to their knowledge that no board member,
officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial
or otherwise, in this transaction, or in the business of the contracting party other than the City ofTemecula,
and that if any such interest comes to the knowledge of either party at any time, a full and complete
disclosure of all such information will be made, in writing, to the other party or parties, even if such
interest would not be considered a conflict of interest under Article 4 )commencing with Section 1090) or
Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the Government Code of the State of
California.
27. 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.
28. 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.
III
R:\KANIGOWJ\Contractor agreement\NPG,Inc.2003.doc
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
NPG, INC.
1354 Jet Way
Perris, CA 92572
(909) 940-0200
NPG,INC.
R:\KANIGOWJ\Contractor agreement\NPG,Inc.2003.doc
EXHmIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance andlor
construction upon real and personal property of the City of Temecula. Work will include emergency
repairs, emergency maintenance, maintenance work, andlor minor construction work. The procedure for
assigning work is set forth as follows:
1. Director of Community Services Department ("Director") or his designee shall submit to
Contractor a written "Request for Work". The Request for Work shall include a description of the work to
be completed, the time for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost
of material which will be required and the estimated cost of labor and equipment necessary to complete the
work in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work
orally to the Contractor. As soon as practical following the emergency, the Contractor and Director shall in
good faith confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
III III
R:\KANIGOWJ\Contractor agreement\NPG ,Inc.2003.doc
EXHIBIT B
LABOR AND EQUIPMENT RATES
Please see attachment
R:\K.ANIGOWJ\Contractor agreement\NPG,Inc.2003.doc
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ESTIMATE TO (ClleDt)
City ofTemoeula
43200 BlIsinOJJ PIlIjc Drive
Temoeula, CaJifonua 92590
DATE: ApriI17.2003
PROJECT: Time &; Material Rates
LOCATION: Eme!llC!L~RollliDe
BID DATE: June 16,2003
AllentloD: Bruce Wedeking We Haodle All Phu.. or Alpha!l
Telephooe: 909-694-6411 Fax: 909-694-6475 Estimator: JelT S. Nelson
NELSOH PAVING" SEALING l_ina~ called CODlnlC1l>r) quD.eslhe fDIIo~n. estimate to Cli,,,, for filmishiD& Ihe motorial ood
1abor aDd pertormil1S the work _mAtter ipCclficd, subject to the lmnl and ~adidons herell'llfter Jet forth.
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LABOR AND EQUIPMENT RENTAL RATES
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SPElAI CONDITIONS
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CITY OF TEMECULA
COMMUNITY SERVICES DEPARTMENT
ANNUAL CONTRACT AGREEMENT
FISCAL YEAR 2003-2004
FOR
ROUTINE MAINTENANCE/CONSTRICTION
THIS CONSTRUCTION CONTRACT, made and entered into as of June 24,2003 by
and between the City ofTemecula, ("City") and DENNIS A. HIBBERTS PLUMBING ("Contractor"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. SCOPE OF WORK. Contractor recognizes' and agrees that this Agreement is for the
purpose of establishing a contractual relationship between the City and the Contractor for the future repair,
improvement, maintenance andlor construction upon real and personal property of the City of Temecula.
Work will include emergency repairs, emergency maintenance, maintenance work, andlor minor
construction work. The work under this Agreement is non-exclusive and City reserves the right to hire
other contractors to perform similar work. The procedure for assigning work is set forth in Exhibit" A" ,
Scope of Work, attached hereto and incorporated herein as though set forth in full. The Director of Public
Works ("Director"), or his designee, is authorized to approve the work in accordance with the procedures
of this Agreement.
2. TERM OF AGREEMENT. This Agreement shall commence as of July 1, 2003 and
shall terminate as of June 30, 2004 unless sooner terminated as provided in this Agreement.
3. PAYMENT.
a. Contractor shall be compensated for actual work performed on the basis of the labor
and equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated
herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures
set forth in Exhibit" A ". The maximum amount of payment under this Agreement shall be Fifty Thousand
Dollars and No Cents ($50,000.00) unless a higher amount is approved by the City Council by amendment
to this Agreement.
b. Contractor will submit invoices monthly for actual services performed. Invoices
shall be submitted between the first and fifteenth day of each month for services provided during the
previous month. The invoice shall describe the approved work assignment under which the work has been
performed. Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed
fees. If the City disputes any of the Contractor's fees, it shall give written notice to the Contractor within
thirty (30) days of receipt of the invoice of the disputed fees on the invoice.
4. 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. Contractor
shall cause a full time experienced Superintendent to be present on the site during all construction and to
oversee and supervise the Work.
5. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be
furnished and work performed and completed subject to the approval of the City or its authorized
representatives, and the quality of the workmanship shall be guaranteed for one year from date of
acceptance.
R:\KANIGOWJ\Contractor agreement\Dennis A.Hibberts Plumbing2003.doc
6. WAIVER OF CLAIMS. On or before making fmal request for payment under Paragraph
2., above, Contractor shall submit to the City, in writing, all claims for compensation under or arising out
of this contract; the acceptance by Contractor of the final payment shall constitute a waiver of all claims
against the City under or arising out of this Contract except those previously made in writing and request
for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with
each claim for payment.
7. PREV AILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of
the State of California, the City Council has obtained the general prevailing rate of per diem wages and the
general rate for holiday and overtime work in this locality for each craft, classification, or type of workman
needed to execute this Contractor from the Director of the Department ofIndustrial Relations. These rates
are available from the California Department Industrial Relations' Internet web site http://www.dir.ca. gov .
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage
rates as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor
shall forfeit to the District, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for
each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work
done under this contract, by him or by any subcontractor under him, in violation of the provisions of the
Contract.
8. 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 3.
9. 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,
the 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 City 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 (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.
R:\KANIGOWIIContractor agreementIDennis A.Hibberrs Plumbing2003.doc
10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all claims,
demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers,
agents and employees may sustain or incur or which may be imposed upon them for injury to or death of
persons, or damage to property arising out of Contractor's negligent or wrongful acts or omissions in
performing or failing to perform under the terms of this Agreement, excepting only liability arising out of
the sole negligence of the City.
11. LIABILITY INSURANCE. 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 coverage
(occurrence form CG 000 1).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California
and Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less
than:
(1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance
or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or
disease.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City Manager. At the option of the City Manager, either the
insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers,
officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
d. Other Insurance Provisions. The general liability and automobile liability policies
are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the 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
R:\KANIGOWJ\Contractor agreement\Dennis A.Hibberts Plumbing2003.doc
Contractor. The coverage shall contain no special limitations on the scope
of protection afforded to the City, its officers, officials, employees or
volunteers.
(2) For any claims related to this project, the Contractor's insurance coverage
shall be primary insurance as respects the City, its officers, officials,
employees and volunteers. Any insurance or self-insured maintained by
the City, its officers, officials, employees or volunteers shall be excess of
the 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, its 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 clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party,
reduced in coverage or in limits except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to the
City.
e. Acceotability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
f. Verification of Coverage. 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 the District 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 effecting the coverage required by these specifications.
g. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workman's Compensation or undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work of this Contract. "
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
13. INDEPENDENT CONTRACTOR. 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 the
City nor any of its officers, employees or agents 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 the City in any manner. 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, the City shall not pay salaries, wages, or other compensation to
R:\KANIGOWJ\Contractor agreement\Dennis A.Hibbem: PlumbinglOO3.doc
Contractor for performing services hereunder for the City. The City shall not be liable for compensation or
indemnification to Contractor for injury or sickness arising out of performing services hereunder.
14. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of State and
Federal laws and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Contractor shall at all times observe and
comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at
law or in equity occasioned by failure of the Contractor to comply with this section.
15. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of
conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in
the execution of the work under this Contract, as a result of failure to make the necessary independent
examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the
City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or
omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will
such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of
time.
16. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this
Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons
employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that
there are no claims outstanding against the project for either labor or materials, except certain items, if any,
to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has
been filed under the provisions of the laws of the State of California.
17. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as
may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection
and audit by any authorized representative of the City.
18. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating
utility facilities pursuant to California Government Code Section 4215.
19. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate
regional notification center in accordance with Government Code Section 4215.
20. INSPECTION. The Work shall be subject to inspection and testing by the City and its
authorized representatives during manufacture and construction and all other times and places, including
without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable
facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be
performed in such manner as to not unduly delay the Work. The Work shall be subject to fmal inspection
and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be
made within a reasonable time after completion of the Work.
21. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not,
discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex,
age, or handicap.
22. WRITTEN NOTICE. 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:
R:\KANIGOWJ\Contractor agreement\Dennis A.Hibbens Plumbing2003.doc
To City:
City of Temecula
POBox 9033
Temecula, CA 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Dennis A. Hibberts Plumbing
34415 Calac Road
Temecula, California 92592
(909) 699-3828
23. 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 of Temecula.
24. 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.
25. 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 jurisdiction over the City of Temecula. In the
event of litigation between the parties concerning this Contract, the prevailing party as determined by the
Court, shall be entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation.
26. PROHIBITED INTEREST. No member, officer, or employee of the City of Temecula or
of a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof
during hislher tenure or for one year thereafter.
Furthermore, the contractorlconsultant covenants and agrees to their knowledge that no board member,
officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial
or otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula,
and that if any such interest comes to the knowledge of either party at any time, a full and complete
disclosure of all such information will be made, in writing, to the other party or parties, even if such
interest would not be considered a conflict of interest under Article 4 )commencing with Section 1090) or
Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the Government Code of the State of
California.
27. 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.
28. 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.
III
R:\KANIGOWJ\Contractor agreement\Dennis A.Hibberts Plumbing2003.doc
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first above written.
CITY OF TEMECULA
Jeffrey E. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONTRACTOR
DENNIS A. HmBERTS PLUMBING
34415 Calac Road
Temecula, CA 92592
(909) 699-3828
DENNIS A. HIBBERTS PLUMBING
R:\KANIGOWJ\Contractor agreement\Dennis A.Hibberts Plumbing2003.doc
EXHmIT "A"
Contractor recognizes' and agrees that this Agreement is for the purpose of establishing a contractual
relationship between the City and the Contractor for the future repair, improvement, maintenance andlor
construction upon real and personal property of the City of Temecula. Work will include emergency
repairs, emergency maintenance, maintenance work, andlor minor construction work. The procedure for
assigning work is set forth as follows:
1. Director of Community Services Department ("Director") or his designee shall submit to
Contractor a written "Request for Work". The Request for Work shall include a description of the work to
be completed, the time for completion of the work, and the plans and specifications, if any, work.
2. Within five (5) business days of the date of the Request for Work, Contractor shall respond in
writing to the Request for Work and advise Director whether it can perform the work and specify the cost
of material which will be required and the estimated cost of labor and equipment necessary to complete the
work in accordance with the labor and equipment rates set forth in Exhibit "B" to this Agreement.
3. In the event emergency work is required, the Director may transmit the Request for Work
orally to the Contractor. As soon as practical following the emergency, the Contractor and Director shall in
good faith confirm in writing the scope of the emergency work undertaken.
4. Upon acceptance of the Contractor's response by the Director, the Contractor shall proceed with the
work. The performance of the work shall be pursuant to the terms of this Agreement.
/11 III
R:\KANlGOWJ\Contractor agreemeot\Dennis A.Hibberts PlumbingZOO3.doc
EXHIBIT B
LABOR AND EQUIPMENT RATES
Please see attachment
R:\KANlGOWJ\CoDtractor agreement\Dennis A.Hibbens Plumbing2003.doc
J
Dennis A. Hibberts Plumbing
34415 Calac Road
Temecula, CA 92592
(909) 699-3828 office (909) 699-0358 fax
(909) 295-1578 cell
June 3, 2003
Attention: City ofTemecula
Conununity Services Department
Maintenance Division
City OfTemecula
43200 Business Park Drive
P.O. Box 9033
Temecula, CA 92589-9033
Attention: Maintenance Superintendent
(909) 694-6480
Dear Sir
Below is a current time and material sheet and scope of work that Dennis A Hibberts
Plumbing performs. We have over 25 years experience in the plumbing industry.
Our company has been established in Temecula for 13 years.
Our scope of work involves new construction, remodel plumbing, service and repair
(conunercial, industrial and residential). We are well aware of code requirements with-in
our trade and other related trades.
Over the last 25 years we have serviced, repaired, replaced and installed, all types of
plumbing fixtures, faucets, water heaters. The list goes on.
:~~.~we are an experience plumbing company.
~X). -
De~ . -Hibberts
Service rates:
$65.00 per man-hour 8:00am to 5:00pm.
Time and a half after hours, week end or holidays
Our material markup is 10% up to 25%, determined by the cost of materials used.
. Dennis A. Hibberts Plumbing is a part ofIntegrity Plumbing
ITEM 19
APPROVAL
CITY ATTORNEY
FINANCE DIRECTO
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Council
Herman D. Parker, Director of Community service~
DATE:
June 24, 2003
SUBJECT:
Second Amendment to the Facility Alarm Systems Service and
Monitoring Agreement with Computer Alert Systems for FY2003-04
PREPARED BY:
Kevin T. Harrington, Maintenance superintendent~
RECOMMENDATION:
That the City Council:
1. Approve the Facility Alarm Systems Service and Monitoring Agreement Second Amendment
with Computer Alert Systems, Inc. to extend the term of the Agreement to June 30, 2004.
2. Authorize the expenditure offunds in the amount of $ 25,000.00 for alarm monitoring and repair
services.
3. Approve a 10% contingency in the amount of $2,500.00.
BACKGROUND: The Temecula Community Services Department (TCSD) released a Request
for Proposal (RFP) for Facility Alarm Monitoring, Inspection and Repair Services on October 25,
2000. Computer Alert Services, Inc. (CASI) was determined to be the lowest qualified vendor for the
required services. An eighteen-month agreement was awarded to CASI effective January 1,2001
thru June 30, 2003 in the amount of $18,000.00. In the first year of this agreement the City added
additional sites for monitoring and inspection services as well as completing extra work items. Thus
increasing the contract amount to $20,345.00. On June 25, 2002 Council approved the first
amendment increasing the amount to $45,345.00
Staff is requesting that the term of the agreement with CASI be extended for a second one-year
term, as allowed for in the original agreement. Thus bringing the total contract amount to
$ 70,345.00. The second amendment will increase the contract amount by $25,000.00.
The base contract amount for extending monitoring services for fiscal year 2003-04 is $ 6,636.00.
In addition an estimated $18,364.00 will be required for repair and installation services.
C:\Documents and Settings\kanigj\Desktop\Contract Amendment 20032004\Computer Alert Agenda Report FY 03-04.doc
FISCAL IMPACT: Sufficient funds have been included in the Annual Operating Budget for fiscal
year 2003-04 in accounts 190-180, 190-181,190-182, 190-184, 190-185, 190-188,340-701, and
340-702 and 001-164.
ATTACHMENTS:
Original Agreement
Amendment NO.1
Amendment NO.2
C:\Documents and Settings\kanigj\Desktop\Contract Amendment 20032004\Computer Alert Agenda Report FY 03-Q4.doc
SECOND AMENDMENT TO AGREEMENT BETWEEN CITY OF
TEMECULA AND COMPUTER ALERT SYSTEMS, INC.
THIS SECOND AMENDMENT is made and entered into as of July 1, 2003 by and between
the City of Temecula, a municipal corporation ("City") and Computer Alert Systems, Inc.
("Contractor"). In consideration of the mutual covenants and conditions setforth herein, the parties
agree as follows:
1. This Amendment is made with respect to the following facts and purposes:
A. On November 29, 2000 the City and Computer Alert Systems, Inc. entered
into that certain agreement entitled "City of Temecula Agreement
Maintenance Services" ("Agreement").
B. The parties now desire to amend the Agreement as set forth in this
Amendment. The City desires to exercise its option to extend the Agreement
term for one year, also the parties desire to increase payment for services in
the amount of $25,000.
2. TERM. The term of the Agreement is extended to June 30, 2004.
3. PAYMENT. 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 Seventy Thousand Three
Hundred Forty Five Dollars and No Cents ($70,345.00) for alarm monitoring,
inspection and repair services for the term of the Agreement, unless additional
payment is approved as provided in this Agreement.
3. Except for the changes specifically set forth herein, all other terms and conditions of
the original Agreement shall remain in full force and effect.
C:\DOCUMENTS AND SErrINGS\KANIG1IDESKTOPICONFRACF AMENDMEyr 20032004\COMPUTER ALERT 2NDAMEN.DOC
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF TEMECULA
BY:
Jeffrey E. Stone, Mayor
ATTEST:
BY:
Susan W. Jones, CMC
City Clerk
Approved As to Form:
BY:
Peter M. Thorson, City Attorney
CONTRACTOR:
COMPUTER ALERT SYSTEMS. INC.
BY:
NAME:
TITLE:
BY:
NAME:
TITLE:
C:\DOCUMENIS AND SETTINGSlKAN1GJIDESKTOPICONTRACf AMENDMEI! 200320041COMPUTER ALERT 2NDAMEN.DOC
EXHIBIT "B"
SCHEDULE OF PAYMENT
FACILITY LOCATION Monthly Fee Fire Monthly Fee Yearly Total Fee Per
System Monitoring & Security System Location
Inspection Monitoring Monitoring & Inspection
City Hall, 43200 Business Park $45.00 $25.00 $840.00
Drive
Maintenance Facility, $45.00 $0.00 $540.00
43210 Business Park Drive
Community Recreation Center, $45.00 $37.00 $984.00
30875 Rancho Vista Road
Temecula Community Center, $45.00 $37.00 $984.00
28816 Pujol Street
Mary Phillips Senior Center, $45.00 $15.00 $720.00
41845 6th Street
Temecula Skate Park, $0.00 $25.00 $300.00
42569 Margarita Road
Temecula Valley Museum, $45.00 $0.00 $540.00
28314 Mercedes Drive
Temecula Children's Museum $45.00 $37.00 $984.00
(Trading Post), 42801 Main
Street
Temecula Wedding Chapel, $0.00 $37.00 $444.00
28300 Mercedes Drive
6th Street Restroom/Parking $0.00 $25.00 $300.00
Lot,
41952 6th Street
Total $6,636.00
Costs for repair or extra work authorized by City
MARK-UP ADDED TO VENDOR'S WHOLESALE PRICE OF
PARTS & EQUIPMENT
HOURLY RATE PER REGUALR MAN HOUR-8am To 5pm
Monday through Friday
HOURLY RATE PER OVERTIME MAN HOUR-After-hours,
Weekends, Holidays, etc.
40%
$65.00/HR.
$85.00/HR.
Invoices will be submitted on a quarterly basis; one month prior to beginning of each
quarter.
C:\DOCUMENfS AND SFlT1NGS\KANIGJIDESKTOP\CONTRACf AMENDMEJT 20032004\COMPUTER ALERT 2NDAMEN.DOC
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FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF
TEMECULA AND COMPUTER ALERT SYSTEMS, INC.
THIS FIRST AMENDMENT is made and entered into as of June 25, 2002 by and between
the City of Temecula, a municipal corporation ("City") and Computer Alert Systems, Inc.
("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties
agree as follows:
1. This Amendment is made vyith respect to the following facts and purposes:
A. On November 29, 2000 the City and Computer Alert Systems, Inc. entered
into that certain agreement entitled "City of Temecula Agreement
Maintenance Services" ("Agreement").
B. The parties now desire to amend the Agreement as set forth in this
Amendment. The City desires to exercise its option to extend the Agreement
term for one year, which will subsequently require an increase in payments.
2. TERM. The term of the Agreement is extended to June 30, 2003.
3. PAYMENT. 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 exce!ld Forty Five Thousand Three
Hundred Forty Five Dollars and No Cents ($45,345.00) for alarm monitoring,
inspection and repair services for the term of the Agreement, unless additional
payment is approved as provided in this Agreement.
3. Except for the changes specifically set forth herein, all other terms and conditions of
the original Agreement shall remain in full force and effect.
R:\HARRINGKIAGREEMNTlCOMPUTER ALERT ISTAMEN.DOC 1" -
"
..'.
.'1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF TEMECULA
BY QG~
on oberts, Mayor
ATTEST:
BY:
~
Peter M. Thorson. City Attorney
CONTRACTOR:
COMPUTER ALERT SYSTEMS, INC.
BY~
~E' _.. '
TITLE: f)".e_ /z,.,.~ ---.
,
BY:
NAME:
TITLE:
R."\HARRlNGKIAGREEMNTlCOMPlffER ALERT ISl'AMEN.DOC
2
~
. '.'~
,
'.
EXHIBIT "B"
FACILITY LOCATION Monthly Fee Fire Monthly Fee Yearly Total Fee Per
System Monitoring & Security System Location
Inspection Monitoring Monitoring & Inspection
City Hall, 43200 Business Pari< $45.00 $25.00 $840.00
Drive
Maintenance Facility, $45.00 $0.00 $540.00
43210 Business Park Drive
Community Recreation Center, $45.00 $37.00 $984.00
30875 Rancho Vista Road
Temecula Community Center, $45.00 $37.00 $984.00
28816 Pujol Street
Mary Phillips Senior Center, $45.00 $15.00 $720.00
41845 6th Street
Temecula Skate Park, $0.00 $25.00 $300.00
42569 Margarita Road
Temecula Valley Museum, $45.00 $0.00 $540.00
28314 Mercedes Drive
Temecula Children's Museum $45.00 $37.00 $984.00
(Trading Post), 42801 Main
Street
Temecula Wedding Chapel, $0.00 $37.00 $444.00
28300 Mercedes Drive
. 6th Street Restroom/Parking $0.00 $25.00 $300.00
Lot,
41952 6th Street
Total $6,636.00
SCHEDULE OF PAYMENT
Costs for repair or extra work authorized by City
MARK-UP ADDED TO VENDOR'S WHOLESALE PRICE OF
PARTS & EQUIPMENT
HOURLY RATE PER REGUALR MAN HOUR-8am To 5pm
Monday through Friday
HOURLY RATE PER OVERTIME MAN HOUR-After-hours,
Weekends, Holidays, etc. .
40%
$65.00/HR.
$85.00/HR.
Invoices will be submitted on a quarterly basis; one month prior to beginning of each
quarter.
R..IHARRINGKlAGREEMNTlCOMPUTER ALERT lSTAMEN.DOC 3
~... b-
/ /
~
CITY OF TEMECULA
CONTRACT AGREEMENT
FOR
MAINTENANCE SERVICES
I
,
TillS MAINTENANCE CONTRACT, made and entered into as of,
November49, -200IHJy-and -between-the'-C--ityccof~Temeculai'-andcGomputeFA4ert~Systems~c.,-=-----, --
("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the
parties agree as follows:
1. TERM. This Agreement shall commence on Januarv 1. 2001, and shall
remain and continue in effect until June 30, 2002, unless sooner terminated pursuant to the
provisions of this Agreement. The City reserves the option to extend the contract(s) under the
same terms and conditions for a maximum of two (2) additional one-year terms per the attached
pricing schedule in "Exhibit B".
2. SCOPE OF WORK. Contractor shall perform all of the work described in the
Scope of Work, attached hereto and incorporated herein as Exhibit A. ("Work") and shall
provide and furnish all the labor, materials, necessary tools, expendable equipment, and all
utility and transportation services required for the Work. All of said Work to be performed
and materials to be furnished for the Work shall be in strict accordance with the specifications
set forth in the Scope of Work.
3. PAYMENT. The City agrees to pay Contractor monthly, in accordance with
the payment rates and schedules and terms as set forth in Exhibit B, attached hereto and
incorporated herein by this reference as though set forth in full, based upon actual time spent
on the above tasks. This amount shall not exceed Eighteen Thousand Dollars ($18,000.00) for
the total term of the Agreement unless additional payment or change order is approved as
provided in this Agreement.
a. Contractor shall submit invoices monthly for actual services performed
detailing the work performed in a form acceptable to the Director of Finance. Invoices shall be
submitted on or about the first business day of each month, for services provided in the
previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to
all non-disputed fees. If the City disputes any of contractor's fees it shall give written notice to
Contractor within 30 days of receipt of invoice of any disputed fees set forth on the invoice.
4. CHANGE ORDERS. The City Manager may approve additional work
provided such work does not exceed the sum of twenty-five thousand dollars ($25,000.00).
Change orders exceeding these limits shall be approved by the City Council.
5. 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.
R\vollmum\agreements.aJJ\minormaintenance.OO
6. CITY APPROVAL. All labor, materials, tools, equipment, and services shall
be furnished and work performed and completed subject to the approval of the City or its
authorized representatives.
7 . WAIVER OF CLAIMS. On or before making final requesrfoqJaymenrunder --
Paragraph 3., above, Contractor shall submit to District, in writing, all claims for
compensation under or arising out -of-this--contract:-the-acceptance-by~eontractorOf-the'iihal---'---
r~ym"nt sh~1l constitut" a waiv"r of all d~ims aeainst the City under Or arising 01lt of this
Contract except those previously made in writing and request for payment. Contractor shall be
required to execute an affidavit, release and indemnify agreement with each claim for payment.
8. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the
Labor Code of the State of California, the District Council has obtained the general prevailing
rate of per diem wages and the general rate for holiday and overtime work in this locality for
each craft, classification, or type of workman needed to execute this Contractor from the
Director of the Department of Industrial Relations. These rates are on file with the City Clerk.
Copies may be obtained at cost at the City Clerk's office of Temecula. Contractor shall post a
copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a
minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776,
1777.5, 1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor
Code, Contractor shall forfeit to the District, as a penalty, the sum of $25.00 for each calendar
day, or portion thereof, for each laborer, worker, or mechanic employed, paid less than the
stipulated prevailing rates for any work done under this contract, by him or by any
subcontractor under him, in violation of the provisions of the Contract.
9. 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 3.
10. 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, the City shall have no obligation or duty to continue compensating Contractor
R\vollmum\agreements.all\minormaintenance.OO
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 City Manager or his delegate determines that the Contractor is in
d f --I . Ii "'"' ---f--- --- -f'-+1.--- -- -d'-' - -~<=^, ----- - '-==-ff ----
e au hn-t e pellormance--o -any--o - UIe"tetjfiS4jt~ort ftJUtiS--01 - UIH;- ",=greement;'-"--'lI<1 -serve ----
th" f:ontrHctor with written notice of the defHlIlt The f:ontrHctor shHll hHve (] 0) dHYS Hfter
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.
11. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect
and hold harmless the City, its officers, officials, employees and volunteers from and against
any and all claims, demands, losses, defense costs or expenses, or liability of any kind or
nature which the City, its officers, agents and employees may sustain or incur or which may be
imposed upon them for injury to or death of persons, or damage to property arising out of
Eontractor'-s~negligent or-wrongful acts-or omissions-in performing or failing to perform under
the terms of this Agreement, excepting only liability arising out of the sole negligence of the
City.
12. LIABILITY INSURANCE. Contractor sha\l 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 ofInsurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87)
covering Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of
California and Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less
than:
(1) General Liability: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial General
Liability Insurance or other form with a general aggregate limit is
used, either the general aggregate limit shall apply separately to
R\vollmum\agreements.all\minonnaintenance.OO
this project/location or the general aggregate limit shall be twice
the required occurrence limit.
(2) Automobile Liability: $1 ,OOO'OOO_p~r acci~ent fOE__~()dily injury
. andpropertydamage;---
. =(-3)~Empltlyer' sL'iabiHty-:-"-$'l~lleFaecident4GFbtldily9njury
or disease.
c. Acceptability of Insurers. Insurance is to be placed with insurers with a
current A. M. Best's rating of no less than A: VII, unless otherwise acceptable to the City.
d. 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 toobilld coverage on its behalf. All endorsements are to
be received and approved by the City before work commences.
e. - Contractor, by executing this Agreement, here~y certifies:
"I am aware of theprovision-of--Section 3700 of the Labor Code which requires
every employer to be insured against liability for Workman's Compensation or
undertake self-insurance in accordance with the provisions of that Code, and I
will comply with such provisions before commencing the performance of the
work of this Contract. "
13. TIME OF THE ESSENCE. Time is of the essence in this Contract.
14. INDEPENDENT CONTRACTOR. 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 the City nor any of its officers, employees or agents 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 the City, or bind City in any manner. 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, the City
shall not pay salaries, wages, or other compensation to Contractor for performing services
hereunder for City. District shall not be liable for compensation or indemnification to
Contractor for injury or sickness arising out of performing services hereunder.
15. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of
State and Federal laws and regulations which in any manner affect those employed by it or in
any way affect the performance of its service pursuant to this Agreement. The Contractor
shall at all times observe and comply with all such laws and regulations. The City, and its
R\vollmum\agreements.all\minormaimenance.OO
. .
officers and employees, shall not be liable at law or in equity occasioned by failure of the
Contractor to comply with this section.
16. CONTRACTOR'S INDEPENDENT INVEStIGATION. No-plea- -oF-
ignorance of conditions that exist or that may hereafter exist or of conditions of difficulties that
- ,-~.- -~----Il1ayiJe-encountered-in-the'execution~hhe"Work-undenhis"€ontracct;=as=a"'fesult-'Offailure""to~-
make the necessary independent examinations and investigations. and no plea of reliance on
initial investigations or reports prepared by the City for purposes of letting this Contract out to
proposal will be accepted as an excuse for any failure or omission on the part of the Contractor
to fulfill in every detail all requirements of this Contract. Nor will such reasons be accepted as
a basis for any claims whatsoever for extra compensation or for an extension of time.
17. CONTRACTOR'S AFFIDAVIT. After the completion of the Work
contemplatedby,this"Gontract, Contractor shall file with,the City Manager his affidavit stating
that all workmen and persons employed, all firms supplying materials, and all subcontractors
on the Work have been paid in full, and that there are no claims outstanding against the project
for either labor or materials, except certain items, if any, to be set forth in an affidavit
covering disputed claims or items in connection with a Stop Notice which has been filed under
the provisions ofthdaws of the State of California.-
18. PROHIBITED INTEREST. No member, officer, or employee of the
City of Temecula or of a local public body shall have any interest, direct or indirect, in the
contract of the proceeds thereof during hislher tenure or for one year thereafter. Furthermore,
the contractor covenants and agrees to their knowledge that no board member, officer or
employee of the City of Temecula has any interest, whether contractual, non-contractual,
financial or otherwise, in this transaction, or in the business of the contracting party other than
the City of Temecula, and that if any such interest comes to the knowledge of either party at
any time, a full and complete disclosure of all such information will be made, in writing, to the
other party or parties, even if such interest would not be considered a conflict of interest under
Article 4 (commencing with Section 1090) or Article 4.6 (commencing with Section 1220) of
Division 4 of Title I of the Government Code of the State of California.
19. 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.
20. BOOKS AND RECORDS. Contractor's books, records, and plans or such
part thereof as may be engaged in the performance of this Contract, shall at all reasonable
times be subject to inspection and audit by any authorized representative of the City.
21. UTILITY LOCATION. The City acknowledges its responsibilities with
respect to locating utility facilities pursuant to California Government Code Section 4215.
R\vollmum\agreements.all\minormaintenance.OO
22. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the
appropriate regional notification center in accordance with Government Code Section 4215.
23. DISCRIMINATION; ..... ContractorCCrepresents"thatit -hasC-xiot;-aiid-agrees"iIIlii:' it
will not, discriminate in its employment practices on the basis of race, creed, religion, national
origin-;-col~r;>ex;=age;=orl1andieap .
24. WRITTEN NOTICE. Any notices which either party may desire to give to the
other party under this Agreement must be in writing and may be given either by (i) personal
service, (ii) delivery by a reputable document delivery service, such as but not limited to,
Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in
the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to
the address of the party as set forth below or at any other address as that party may later
designate by Notice:
To City:
City of Temecu1a
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Contractor:
Computer Alert Systems, Inc.
28465 Old Town Front Street, Suite 324
Temecula, CA 92590
Attention: Nathan Gans, President
25. ASSIGNMENT. The Contractor shall not assign the performance of this
Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent
ofthe City.
26. 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.
27. GOVERNING LAW. The District 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 jurisdiction over the City of Temecula.
28. 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
R\vollmurn\agreements.all\minormaintenance.OO
. .
forth herein and upon each party's own independent investigation of any and all facts such
party deems material.
29. AUTHORITY TO EXECUTE THIS AGREEMENT. T~e person or
persons executing-thiS' Agreement on behaWof-Contra:ctor warrants-and-repre1;ents -that he- or--------
she has the authority to execute this Agreement on behalf of the Contractor and has the
authorily'toiJind"'6'>nrractOr-to-the1>erfurtfiafite-ufitj; -uliligationsilereunder.
1111
IIII
R\vollmum\agreements.all\minormaintenance.OO
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed the day and year first above written.
. ---CITYOFtEMECtJL-A':'~-=-=====-
BY1lb.wL
Shawn D. Nelson, City Manager
Attest:
~~r\..."'~~' \l--...~~~.~
A" Susan W. Jones,.01C, City Clerk)p1 ,~
",Approved As to Form:
~
Ifeter M. Thorson, City Attorney
CONTRACTOR:
Computer Alert Systems, Inc.
/~ 0
/
By:
Name: Mary J ns
Title: Secretary/Treasurer
/
(Two Signatures Required for Corporations)
R\vollmum\agreements.all\minormaimenance.OO
EXHIlHT "A" (page 1 of 2)
CITY OF TEMECULA
SPECIFICATIONSISCOPE OF WORK
ALARM MONITORING, INSPECTIONS AND REPAIR
These specifications and scope of work applies to each City location listed in this exhibit.
I. Contractor will monitor both fire an.<I security alarm systems seven days a week,
twentycfour (24}lroUfS a day at all mne'locations; -listedifnlri~fej(hioit:-- MOhlhly
monitoring fee excludes all monthly phone line fees.
. 2:-1'he'.-€ontractor"WiH'Cb~esponsible~rogramming~temfto=ifia14he=-'selected
Contractor's central office. this includes costs for any modification of Citv equipment
or any other fees, which may be required to transfer. system monitoring to the
Contractor's central office.
3. All fire and security equipment, wiring, panels, detectors, keypads, etc. will remain
the City's property. The Contractor will maintain the systems, system programs and
equipment in an "unlocked state", thereby allowing the City or any other contractor
the City my choose to service or program the equipment. No equipment or system
program modifications may be made without first receiving written approval from the
City.
4. The monitoring fee will include any costs for changing security access codes and
training supervisory staff, from time to time, throughout the term of the agreement, as
directed by the City.
5. Monitoring fee will include monthly "opening & closing" reports for each location.
6. Fire sprinkler monitoring and alarm systems at all facilities will be inspected in
accordance with the California Fire Code Article 10 and NFP A 72. Fire sprinkler and
alarm system inspections will be reported on the National Fire Alarm Code form with
a copy sent to the City for its records.
7. It is recommended that Contractor and/or Contractor's technicians be NlCET Level II
certified and are also certified by the manufacture to service their alarm equipment.
Facility Locations and System Types/ManufactureslModels Numbers
Contractor has inspected the alarm systems at each location and confirms the accuracy of this
list. Contractor has verified system condition, model number, and other aspects of the system to
insure it is in good operation condition and that the Contractor is capable of providing
monitoring and repair service for each system.
1.
City HalI, 43200 Business Park Drive
Fire Alarm: AFP 200 Notifire
Security Alarm: DCS MAXSYS PC 4020
Key Pad-LCD 4500
2. Maintenance Facility, 43210 Business Park Drive
Fire Alarm: Silent Knight 5204
Security Alarm: DCS MAXSYS PC 4020 Key Pad-LCD 4500
3. Community Recreation Center, 30875 Rancho Vista Road
Fire Alarm: Radionics Omegalarm D8ll2
Fire Alarm Annunciation: Radionics
Security Alarm: Radionics D 7212 Key Pad-Radionics
EXHIBIT A (Page 2 of2)
4. Temecula Community Center, 28816 Pujol Street
Fire Alarm: Silent Knight 5140
----Security Alarni:-DSC-PC-3DOORK-
5. . -- . -M-arr-Phillip~eni()rC-efiter,41845=6th-Street
Fire Alarm: AdemcoNista 5140 XM
Secruity Alarm: Ademco Key Pad Ademco
6. Temecula Valley Museum, 28314 Mercedes Drive
Fire Alarm: Vista 100
Security Alarm: Vista 100 Key Pad-6139
7. Temecula Wedding Chapel, 28300 Mercedes Drive
Fire Alarm: Vista 30
Security Alarm: Vista 30 Key Pad-Ademco 16821
8. 6th Street Restroom/Parking Lot, 41952 6th Street
Fire Alarm: None
Security Alarm: PC 1555 ~"Key Pad-DSC PC 1555 RKZ
9. Temecula Children's Museum (Temecula Trading Post), 42081 Main Street
Fire Alarm: Silent Knight 5107
Security Alarm: Radionics Key Pad- Radionics
., .
EXHIBIT "B"
FACILITY LOCATION Monthly Fee Fire Monthly Fee Yearly Total
System Monitoring & Security System Fee Per
Inspection Monitoring Location
Monitoring &
------ -------- -..------- -- ---- ---~----- .-- ------ ---.---------'- ~nspeciion- .-
~. -...- Citv.HaIl43200 Business Park $45.00___ u $25.00 -- $840.0.0 . -
Drive .
Maintenance Facility, $45.00 $0.00 $540.00
43210 Business Park Drive
Community Recreation Center, $45.00 $37.00 $984.00
30875 Rancho Vista Road
Temecula Community Center, $45.00 $37.00 $984.00
28816 Pujol Street
Mary Phillips Senior Center, $45.00 $0.00 $540.00
41845 6th Street
Temecula Valley Museum, $45.00 $0.00 $540.00
28314 Mercedes Drive
Temecula Children's Museum $45.00 $37.00 $984.00
(Trading Post), 42801 Main
Street
Temecula Wedding Chapel, $0.00 $37.00 $444.00
28300 Mercedes Drive
6th Street Restroom/Parking $0.00 $25.00 $300.00
Lot,
41952 6th Street
Total $6,156.00
SCHEDULE OF PAYMENT
Costs for repair or extra work authorized by City
MARK-UP ADDED TO VENDOR'S WHOLESALE PRICE
OF PARTS & EQUIPMENT
HOURLY RATE PER REGUALR MAN HOUR-Sam To 5pm
Monday through Friday
HOURLY RATE PER OVERTIME MAN HOUR-After-hours,
Weekends, Holidays, etc.
40%
$65.00/HR.
$85.00/HR.
Invoices will be submitted on a quarterly basis; one month prior to beginning of each
quarter.
ITEM 20
APPROVAL
CITY ATTORNEY
DIRECTOROF FINANC
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO: City Council
FROM: Peter Thorson, City Attorney
DATE: June 24, 2003
SUBJECT: Agreement Providing for a Modified Schedule for Approval and Recordation of
Covenants, Conditions and Restrictions for a Portion of the Crowne Hill
Development, Tract 26941.
RECOMMENDATION: Approve the Covenant between the City ofTemecula and PCC III-Crowne
Hill, LLC and authorize the Mayor to Execute the Covenant on Behalf of the City.
BACKGROUND: The Crowne Hill development is a large residential development in the
southeastern portion of the City. The proposed Covenant affects approximately 28 lots in the
development These lots are estate-sized lots, which have created a unique set of public
improvement issues for the City than the other single family homes in the remainder of the
development The City's conditions of approval for the Tract require that the City approve the
covenants, conditions and restrictions ("CCRs") for the Tract prior to recordation so that these
properly implement the public improvement requirements of the City's conditions of approval.
The developer, Pacific Century, has requested that the City allow it to create the homeowner
association and CCRs for the Tract following recordation of the final subdivision map rather than
before recordation. The Tract has a number of special issues concerning use of the common areas,
which the City has required to be addressed in the CCRs. Given the nature of the City's required
terms in the CCR's and the estate-sized lots, the CCR's cannot be approved by the State
Department of Real Estate within the normal time frames.
All of the City's rights to secure compliance with the conditions of approval will be protected by the
proposed Covenant. The proposed Covenant requires approval by the City and recordation of the
CCRs prior to any sale of the Tract or prior to issuance of the first building permit If the required
CCRs are not approved by the City and properly recorded, neither the developer, nor any successor
nor any lender for the Tract will be able to obtain building permits.
FISCAL IMPACT:
Covenant
None. The developer has paid all costs to the City of preparing the
ATTACHMENTS:
Covenant between City of Temecula and PCC III-Crowne Hill, LLC
Agenda ReportslCrowne Hill
RECORDING REQUESTED BY AND
WHEN RECORDED MAil TO:
City of Temecula
43200 Business Park Drive
P.O. Box 9033
Temecula, California 92589-9033
Attn: City Clerk
Exempt from recordina fees pursuant to Gov!. Code Section 27383
cnVFNANT
(Acceptance of Conditions to Issuance of Final Map)
This Covenant is made and entered into as of June 24, 2003, by PCC III-CROWNE Hill, llC., a
Delaware limited liability company ("Owner"), in favor of the CITY OF TEMECULA, a municipal
corporation ("City"), with respect to the following facts: .
Rp!r.it~l~
A. Owner is the owner of that certain real property ( the "Property") located in the City
of Temecula, County of Riverside, State of California, legally described in Exhibit "A" attached hereto and
incorporated by reference here (the "Property").
B. Pursuant to those certain Conditions of Approval issued by the City of Temecula
for Vesting Tentative Tract Map No. 26941, Fifth and Final Extension of Time (the "Conditions of
Approval"), which are incorporated herein by this reference, City has agreed to approve Vesting Tentative
Tract Map No. 26941 on the condition that a homeowners association be established for the Property (the
"Association"), and that Covenants, Conditions and Restrictions ("CC&Rs") be reviewed and approved by
the City and recorded on the Property.
C. The Owner now wishes to record final map for Vesting Tentative Tract Map No.
26941(the "Final Tract Map"), in advance of the formation of .the Association and the completion of the
CC&Rs for the Property.
D. In consideration for the City's approval of and permission to record the Final Tract
Map, and as a condition of approval, Owner has agreed to execute and record this Covenant covering the
Property subject to the Final Tract Map, as specified more fully herein.
NOW, THEREFORE, in consideration of the foregoing recitals, Owner covenants,
promises and agrees for the benefit of the City a1' follows:
1. RAcitals. The above recitals, and each of them, are true and correct
and are hereby incorporated by reference herein and made a part hereof.
RWG 737400.1 6/12/03
2. CompliAncA with Connition!': of ApprovAl. Owner covenants and agrees
to and in favor of the City that Owner shall form a homeowners association for the real property covered
by the Final Tract Map, and create and record the CC&Rs, pursuant to the Conditions of Approval and in
a form acceptable to the City prior to the transfer, sale, conveyance, encumbrance, assignment, lease, or
other disposition of all or any portion of the real property covered by the Final Tract Map to any third party,
but in no event later than the issuance of the first building permit. Owner acknowledges and agrees that
in the event Owner breaches this provision, the City has the legal authority to and may withhold the
issuance of building or grading permits and/or refuse to process any land use applications for the real
property covered by the Final Tract Map. Owner agrees to notify any holder of a lien or encumbrance on
the property of the terms of this Covenant and agrees to obtain such lienholder's consent and
subordination to this Covenant.
3. RAcornAtion of CovAnAnt.
of the County Recorder for the County of Riversirie.
4. CovAnAnt Rlln!': With I Ann. This Covenant shall be a covenant running
with the land and shall be binding upon the Property and future oWners of the Property or successors in
interest of Owner, and shall run to the benefit of the City, until this Covenant is released or modified by
the City. This Covenant shall run with the land and shall be a burden upon the Property and shall be for
the benefit of all real property oWned or cOntrolled by the City, which is located in the City of Temecula,
County of Riverside, and State of California. This instrument is intended to be a covenant running with
the land and such intention shall be liberally construed in favor of the City.
5. TArminAtion of CovAnAnt. Notwithstanding anything provided herein to
the contrary, the burdens of this Covenant may be terminated by the City Council of the City at any time
by execution and recordation of a notice terminating this Covenant and/or upon the recordation of
Covenants COnditions and Restrictions recorded on the property.
6. TimA i!': of F!':!':AncA. Time is of the essence of each provision of this
Covenant of which time or performance is a factor.
7. City'!': RAmAniA!': for RrAAch. In the event of a violation of any of Owner's
obligations set forth herein, the City shall be entilled to all remedies at law or equity that may be available
to it, including the right to seek an injunction against any violation hereof, an action for specific
performance, or an action for damages. In addition to any other remedies available to the City, upon
breach of this Covenant the City may refuse to issue or revoke any building permit, certificate of
occupancy or similar permit, approval or certificate therefor issued for the improvements to be
constructed on the property.
This Covenant shall be recorded in the office
8. For RAnAfit of City. This Covenant shall be enforceable by and inure to
the benefit of the City and its successors and assigns and shall bind Owner and Owner's and successors
and assigns. This Covenant shall be enforceable by tre City and any assignee of the rights of the City.
The City shall be entitled to assign its rights hereunder to any governmental agency or subdivision of the
City or of the State of California.
9. EntirA AQrAAmAnt. AmAndmAnt. This instrument contains the entire
agreement of Owner relating to the rights herein granted and the burdens and obligations herein
assumed. Any oral representations or modifications concerning this instrument shall be of no force or
effect except for a subsequent modification in writing signed by the then current owner and lessee of the
Property and by the City, except for a termination hereof executed by the City. This Covenant may not be
amended, modified or revoked without the written cOnsent of the City.
10. AttornAY'!': FAA!':. In the event of any controversy, claim, or dispute
relating to this instrument or the breach thereof, the prevailing party shall be entitled to recover from the
losing party reasonable attorney's fees and costs.
RWG 737400.'6/12/03
2'
11. Sp.vp.mhility. If any provIsion of this Covenant is held by a court of
competent jurisdiction to be unenforceable or ir,valid, such holding shall not render unenforceable any
other provision hereof, each provision hereof being expressly severable and independently enforceable to
the fullest extent permitted by law.
12. Captions. The captions used in this Covenant are for convenience
only and therefore do not constitute a part of this Covenant and do not amplify or limit the meaning of the
provisions of this Covenant.
13. Intp.rprp.tation, This Covenant shall be construed according to its fair
meaning and as if prepared by both parties hereto. Any rule of law (including without limitation California
Civil Code Section 1654) or legal decision that would require interpretation of any ambiguities in this
Covenant against the party that has drafted it is not applicable and is hereby waived.
14. Govp.rning I aw, This Covenant shall be construed in accordance with
the laws of the State of California.
15. COImtp.rparts. This Covenant may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute a single agreement.
16. Nntir.p.s Formal notices, demands and communications between
the parties shall be delivered (a) personally, (b) by nationally recognized overnight courier service, or
(c) dispatched by U.S. first class registered or certified mail, return receipt requested, postage prepaid,
to the addresses set forth below. Such notices, demands and communications shall be deemed given
three (3) days after mailing, the next business day after deposit with a nationally recognized overnight
courier service, or immediately upon personal delivery.
If to City:
Shawn Nelson
City Manager
City of Temecula
Post Office Box 9033
43200 Business Park Drive
Temecula, Ca. 92589-9033
If to Owner:
PCC III-CROWNE Hill, llC.
Clo lennar Communities
391 North Main Street, Ste. 301
Corona, Ca. 92880
And to any Lenders as described in this Covenant.
RWG 737400.16/12/03
3
IN WITNESS WHEREOF, the parties hereto have executed this Covenant as of the day
and year first above written.
OWNER:
PCC III-CROWNE Hill, llC., a Delaware
limited liability company
CITY:
CITY OF TEMECULA, a municipal
corporation
By:
Jeffrey E. Stone
Attest:
By:
Name:
Title:
Susan Jones, City Clerk
APPROVED AS TO FORM:
Peter M. Thorson, City Attorney
Dated:
STATE OF CALIFORNIA )
)
)
before me, the
Notary Public in and for
personally appeared
and
, personally
known to me or proved to me on the basis
of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the
within instrument and acknowledged to me
that helshelthey executed the same in
his/her/their authorized capacity(ies), and
that by his/herltheir signature(s) on the
instrument the person(s), or the entity upon
behalf of which the person(s) acted,
executed
the instrument
COUNTY OF
On
undersigned, a
said State,
(This area for official notarial seal)
WITNESS my hand and official seal.
Signature
RWG 737400.16/12/03
4
LENDER'S CONSENT AND SUBORDINATION TO COVENANT
1 . ("Lender") holds a
security interest in the Property described in the Covenant set forth above between PCC III-CROWNE
HILL, LLC., a Delaware limited liability company ("Owner"), in favor of the CITY OF TEMECULA. a
municipal corporation ("City").
2. In consideration of the rights and benefits conferred upon the Owner by the terms of the
Covenant and in recognition of the accrual of those benefits to the Lender in the event Lender takes
possession of the Property, Lender hereby consents to the Covenant and its recordation and agrees
that its interests in the Property are subject to, and made subordinate to, the rights and interests of the
City as set forth in the Covenant.
3. The City agrees to provide notice of any default to Lender pursuant to Paragraph 16 of
the Covenant at the following address:
IN WITNESS WHEREOF the Lender has executed this Consent and Subordination as of June
_.2003.
Lender:
Name:
Position:
Name:
Position:
RWG 737400.1 6/12/03
Dated:
STATE OF CALIFORNIA
)
COUNTY OF
On
undersigned, a
said State,
)
before me, the
Notary Public in and for
personally appeared
and
personally
known to me or proved to me on the basis
of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the
within instrument and acknowledged to me
that he/she/they executed the same in
his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the
instrument the person(s), or the entity upon
behalf of which the person(s) acted,
executed
the instrument.
WITNESS my hand and official seal.
Signature
RWG 737400.1 6/12/03
(This area for official notarial seal)
2
F
EXHIBIT A
I F'GAI DE5;CRIPTION
RWG 737400.1 6/12/03
3
ITEM 21
APPROVAL
CITY ATTORNEY
DIRECTOROF FINANCE
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
William G. Hughes, Director of Public WorkslCity Engineer
DATE:
June 24, 2003
SUBJECT:
Professional Landscape Plan Check and Inspection Services Agreement
for Fiscal Year 2003-2004
PREPARED BY:
Beryl Yasinosky, Management Analyst
RECOMMENDATION: That the City Council approve the annual professional services
agreement for Fiscal Year 2003-2004 with PELA for landscape plan check and inspection services
in the amount of $25,000.00 and authorize the Mayor to execute the agreement.
BACKGROUND: PELA is currently under contract with the Public Works Department CIP
Division to provide landscape plan check and inspection services. These services are necessary to
insure that future landscape improvements constructed as part of the City's Capital Improvement
Program are designed and constructed to City standards.
In order to avoid any lapse or delays in the plan check and inspection process, the Public Works
Department CIP Division is proposing to continue the professional services agreement with PELA in
the amount of $25,000.00 for Fiscal Year 2003-2004. Landscape plan check and inspection
services will continue to be provided on an hourly basis, which is consistent with the accounting
system for CIP projects. Funding for these services are available within each respective CIP project
budget.
FISCAL IMPACT: The consultant will submit a cost proposal for each service request. Once a
scope of service and schedule of fees are negotiated, funds are allocated from the corresponding
project budget. Only approved CIP projects will utilize the services under this agreement, unless
directed otherwise by the City Manager or City Council.
ATTACHMENT:
Professional Services Agreement
R:\Agenda Reports\2003\0624\Winchak Amend 1
CITY OF TEMECULA
ANNUAL FISCAL YEAR 2003-2004 AGREEMENT
FOR
PROFESSIONAL LANDSCAPE PLAN CHECK & INSPECTION SERVICES
THIS AGREEMENT, is made and effective as of June 24, 2003, between the City of
Temecula, a municipal corporation ("City") and PELA, ("Consultanf'). 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, 2003, and shall remain
and continue in effect until June 30, 2004, unless terminated or extended pursuant to the
provisions of this Agreement.
2. SERVICES. This is an annual contract for Landscape Plan Check &
Inspection Services on an as needed basis. Consultant can perform any of the services and
tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set
forth in full.
When there is a need for Landscape Plan Check & Inspection Services on an as
needed services, the City will identify the specific scope of work, and request a fee schedule from
the consultant. The City will instruct the consultant to proceed with the work once the exact scope
of work and the associated fees are negotiated.
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. PREVALlLlNG WAGES. Pursuant to the provisions of Section 17730fthe
Labor Code of the State of California, the City Council has obtained the general prevailing rate of
per diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of workman needed to execute this Contract from the Director of the
Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be
obtained at cost at the City Clerk's office of T emecula. Consultant shall provide a copy of prevailing
wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as
a minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,
1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code,
Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion
thereof each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates
for any work done under this contract, by him or by any subcontractor under him, in violation of the
provisions of the Contract.
5. PAYMENT.
a. The City agrees to pay Consultant monthly, in accordance with the payment rates
and terms and the schedule of payment as negotiated and 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 tasks as directed by the City on an as needed basis. Any
terms in Exhibit B other than the payment rates are null and void. The total cumulative annual
amount shall not exceed Twenty Five Thousand Dollars and No Cents ($25,000.00) for the total
term of the Agreement unless additional payment is approved as provided in this Agreement.
1
r:\agrmts\masters\2003-04 annual masterIPELA contracl2003-Q4/ajp
b. Consultant shall not be compensated for any services rendered in
connection with its performance of this Agreement unless such additional services are authorized in
advance and in writing by the City. Consultant shall be compensated for services in the amounts
and in the manner as agreed to by the Director of Public Works/City Engineer and Consultant atthe
time City's written authorization is given to Consultant for the performance of said services. Any
additional work in excess of the amount above shall be approved by the City Council.
c. Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted between the first and fifteenth business day of each month, for services
provided in the previous month. Payment shall be made within thirty (30) days of receipt of each
invoice as to all nondisputed fees. If the City disputes any of consultant's fees it shall give written
notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the
invoice.
6. 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 othelWise. If the City suspends or
terminates a portion of this Agreement such suspension or termination shall not make void or
invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City
shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4.
7. DEFAULT OF CONSULTANT.
a. The Consultant's failure to comply with the provisions of this Agreement shall
constitute a default. In the event that Consultant is in default for cause under the terms of this
Agreement, City shall have no obligation or duty to continue compensating Consultant for any work
performed after the date of default and can terminate this Agreement immediately by written notice
to the Consultant. If such failure by the Consultant to make progress in the performance of work
hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of
the Consultant, it shall not be considered a default.
b. If the City Manager or his delegate determines that the Consultant is in
default in the performance of any of the terms or conditions of this Agreement, it shall serve the
Consultant with written notice of the default. The Consultant shall have (10) days after service
upon it of said notice in which to cure the default by rendering a satisfactory performance. In the
event that the Consultant fails to cure its default within such period of time, the City shall have the
right, notwithstanding any other provision of this Agreement, to terminate this Agreement without
further notice and without prejudice to any other remedy to which it may be entitled at law, in equity
or under this Agreement.
8. 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
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maintained in accordance with generally accepted accounting principles and shall be clear1y identi-
fied and readily accessible. Consultant shall provide free access to the representatives of City or
its designees at reasonable times to such books and records, shall give City the right to examine
and audit said books and records, shall permit City to make transcripts therefrom as necessary,
and shall allow inspection of all work, data, documents, proceedings and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a period of
three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this
Agreement, all original documents, designs, drawings, maps, models, computer files 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
ofthe City and may be used, reused or otherwise disposed of by the City withoutthe 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.
c. With respect to the design of public improvements, the Consultant shall not
be liable for any injuries or property damage resulting from the reuse of the design at a location
other than that specified in Exhibit A without the written consent of the Consultant.
9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect
and hold harmless the City, its officers, officials, employees and volunteers from and against any
and all claims, demands, losses, defense costs or expenses, including attomey fees and expert
witness fees, or liability of any kind or nature which the City, its officers, agents and employees may
sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to
property arising out of Consultant's negligent or wrongful acts or omissions 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.
10. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for
the duration of the contract insurance against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work hereunder by the
Consultant, its agents, representatives, or employees.
a. Minimum Scooe of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability form
No. CG 00 01 11 85 or 88.
(2) Insurance Services Office Business Auto Coverage form CA 00 01
06 92 covering Automobile Liability, code 1 (any auto). If the
Consultant owns no automobiles, a non-owned auto endorsement to
the General Liability policy described above is acceptable.
(3) Worker's Compensation insurance as required by the State of
Califomia 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.
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(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: $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
projecVlocation or the general aggregate limit shall be twice the
required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Professional Liability coverage: One million ($1 ,000,000) per claim
and in aggregate.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City Manager. At the option of the City
Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and defense
expenses.
d. Other Insurance Provisions. The general liability and automobile liability
policies are to contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees and volunteers are to be
covered as insureds as respects: liability arising out of activities
performed by or on behalf of the Consultant; products and
completed operations of the Consultant; premises owned, occupied
or used by the Consultant; or automobiles owned, leased, hired or
borrowed by the Consultant. The coverage shall contain no special
limitations on the scope of protection afforded to the City, its officers,
officials, employees or volunteers.
(2) For any claims related to this project, the Consultant's insurance
coverage shall be primary insurance as respects the City, its
officers, officials, employees and volunteers. Any insurance or self-
insured maintained by the City, its officers, officials, employees or
volunteers shall be excess of the Consultant's insurance and shall
not contribute with it.
(3) Any failure to comply with reporting or other provisions of the
policies including breaches of warranties shall not affect coverage
provided to the City, its officers, officials, employees or volunteers.
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(4) The Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect
to the limits of the insurer's liability.
(5) Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail, retum receipt requested,
has been given to the City.
e. Acceotabilitv of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self
insurance shall not be considered to comply with these insurance requirements.
1. Verification of Coveraae. 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 altemative to the City's forms, the Consultant's insurer may provide
complete, certified copies of all required insurance policies, including endorsements effecting the
coverage required by these specifications.
11. 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.
12. 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.
13. 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
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provide declarations, letters of support, testimony at depositions, response to interrogatories or
other information concerning the work performed under this Agreement or relating to any project or
property located within the City. Response to a subpoena or court order shall not be considered
"voluntary" provided Consultant gives City notice of such court order or subpoena.
b. Consultant shall promptly notify City should Consultant, its officers,
employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of
deposition, request for documents, interrogatories, request for admissions or other discovery
request, court order or subpoena from any party regarding this Agreement and the work performed
thereunder or with respect to any project or property located within the City. City retains the right,
but has no obligation, to represent Consultant andlor 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.
14. 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.
To City:
City of Temecula
Mailing Address:
P.O. Box 9033
Temecula, California 92589-9033
43200 Business Park Drive
Temecula, California 92590
Attention: City Manager
To Consultant:
PELA
637 Arden Drive
Encinitas, California 92024
Attention: Michael G. Elliott, ASLA
15. ASSIGNMENT. The Consultant shall not assign the performance of this
Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of
the City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for
actual services performed up to, and including, the date of termination or as may be othelWise
agreed to in writing between the City Council and the Consultant.
16. 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.
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17. 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
judgement, shall be entitled to reasonable attorney fees and litigation expenses for the relief
granted.
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. PROHIBITED INTEREST. No member, officer, or employee of the City of
Temecula or of a local public body shall have any interest, direct or indirect, in the contract of the
proceeds thereof during his/her tenure or for one year thereafter.
Furthermore, the contractor/consultant covenants and agrees to their
knowledge that no board member, officer or employee of the City of T emecula has any interest,
whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of
the contracting party other than the City of Temecula, and that if any such interest comes to the
knowledge of either party at any time, a full and complete disclosure of all such information will be
made, in writing, to the other party or parties, even if such interest would not be considered a
conflict of interest under Article 4 (commencing with Section 1090) or Article 4.6 9commencing with
Section 1220) of Division 4 of Title I of the Government Code of the State of California.
20. 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
the day and year first above written.
CITY OF TEMECULA
Jeffrey B. Stone, Mayor
Attest:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
Peter M. Thorson, City Attorney
CONSULTANT
PELA
637 Arden Dr.
Encinitas, CA 92024
(760) 944-8463
Jt~~.~~
Michael G. Ihot!, ASLA
(Signatures of two corporate officers required for Corporations)
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EXHIBIT A
SCOPE OF SERVICES AND FEES
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RECEIVED
JUN 0 2 2003
CITY OF TEMECULA
ENGINEERING DEPARTMENT
May 29, 2003
Ms. Anita J. Pyle, Administrative Secretary
CITY OF TEMECULA
Public Works Department
43200 Business Park Drive
Temecula, Califomia 92589-9033
RE: City of Temecula, Public Works Department
Landscape Plan Check & Inspection Services
Dear Ms. Pyle,
Beryl Yasinosky contacted our office regarding landscape plan check and inspection services for the
Public Works Department. The following are our proposed scope of services and fees forwarded to you
at her request:
SCOPE OF SERVICES:
A. Upon notification from the Public Works Department that construction plans are ready for
review, PELA will pick up plans at the City. Two sets of plans will be required.
B. PELA will review the plans verifying consistency with Public Works Department standards and
specifications, map conditions of approval and CC&R's. One set of plans will be red-lined with
comments notifying the applicant of necessary revisions to be made to bring the plans into
confonnance with Public Works Department standards. Items not addressed in Public Works
standards but that are outside of profession nonns will also be marked for explanations from the
applicant.
C. PELA will return plans and plan check comments to the Public Works Department within two (2)
weeks of receipt of the first submittal; one (I) week for second and third submittals. Plan check
comments will also be provided via e-mail for use by the City.
D. Once revisions have been resubmitted by the applicant, PELA will re-check the plans for
confonnance. Should all revisions have been made and all questions answered, the plans will be
ready for approval. If all revisions are not made, one set of plans and the check list will be red-
lined again and returned to the applicant a second time for revisions. This process will continue
until the plans are brought into confonnance with City standards and professional nonns.
E. Upon request of the Public Works Department, PELA will review and approve construction cost
estimates of proposed improvements in order to detennine bonding requirements if required for
the project.
F. . Upon request of the Public Works Department, PELA will provide landscape construction
inspection services in order to insure implementation is in confonnance with the approved plans.
A written report will be provided to the project manager after each inspection.
637 Arden Drive. Enclnltas . California. 92024 . (760) 944-8463
-
Ms. Anita J. Pyle
Landscape Plan Check & Inspection Services
May 29, 2003
Page 2
FEES:
Fees for the above scope of services will be charged hourly at the following rate:
$88.00 per hour
Let me know if you need our office project experience list or personnel resumes for review.
You should have our latest certificates of insurance that cover our office until August of 2003. We will
be renewing them at that point and will forward updated documents at that time. Should you have any
questions or need additional infonnation, please feel free to contact me.
Sincerely,
Pittt 4. t(~ir
Michael G. Elliott
Landscape Architect, No. 2011
c:\City ofTemecula Plan Checks\Public Works Proposal.3
ITEM 22
,,-
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APPROVAL
CITY ATTORNEY
FINANCE OFFICER
CITY MANAGER
TEMECULA CITY COUNCIL
AGENDA REPORT
DATE:
June 24, 2003
City Manager/City Council \ n ~\
John Meyer, Redevelopment Director ~\V\l'\
Corporation for Better Housing Senior Housing Project
TO:
FROM:
SUBJECT:
RECOMMENDATION:
1. That the City Council adopt a resolution entitled:
RESOLUTION NO. 0311'
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING FIRST AMENDMENT TO THE
DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF
TEMECULA AND 28500 PUJOL STREET, A CALIFORNIA
LIMITED PARTNERSHIP
BACKGROUND: City Council approved the Disposition and Development Agreement (DDA)
with Corporation for Better Housing (CBH) January 14, 2003.
Corporation for Better Housing (CBH) is proposing to develop a 66 unit affordable senior housing
project on the east side of Pujol, south of 6th Street, behind the Habitat for Humanity homes. The
project will be two-story garden-style apartments and project amenities, which will include a
community room, and swimming pool. The project is proposed to be all one-bedroom units.
The Agency will contribute $2,615,000 to the project as a loan. CBH will then reimburse the Agency
$434,000 for the value of the property.
DISCUSSION: The proposed amendments to the DDA are best described as housekeeping
items, which have relatively little impact on the City's participation in the project. The proposed
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amendments will not result in any of the previously agreed to deal points nor affect the level of the
Agency's financial contribution to the project.
The first item is in response to the correct legal name of the partnership, which was incorrectly given
to the City previously. The correct name of the partnership is 28500 Pujol St. previously referred to
as 28500 Street.
The second adjustment is a request from the tax credit borrower to include language that allows the
borrower the right to clear any defaults. The third adjustment is a request from the limited partner to
be able to take control from the general partners without the City's approval. And the last
adjustment from the partnership is to establish the deal as a non-recourse transaction, which limits
the Agency to go after only the project and not the partnership in the case of default.
The City's Attorney has reviewed the last three requests and determined they are standard items
typical to these types of DDA's and do not compromise the City's interest in any way.
FISCAL IMPACT: As outlined in the body of the report, the proposed amendment will not result
in any additional cost to the City.
Attachment: Resolutions
First Amendment to the Disposition and Development Agreement
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Supplemental Material
with regard to
Consent Calendar Item No. 22
RESOLUTION NO. RDA 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TEMECULA APPROVING FIRST
AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE
CITY AND 28500 PUJOL STREET, A CALIFORNIA
LIMITED PARTNERSHIP
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. The City Council hereby finds, determines and declares that:
A. City and 28500 Pujol Street, a California Limited Partnership
("Developer") have entered into a Disposition and Development Agreement dated as of
January 14, 2003 (the "DDA") which provided for, among other things, the City's
contribution to Developer of certain real property described therein (the "Property") and
the City's making a "predevelopment loan" to Developer to be secured by the Property
(the "City Loan") for the purpose of facilitating the development of an affordable 66-unit
senior housing project on the east side of Pujol. The project will be two-story garden-
style apartments and project amenities, which will include a community room and
swimming pool. Capitalized terms used herein but not defined shall have the meaning set
forth in the DDA.
B. The City Loan is secured by a Deed of Trust, Security Agreement
and Fixtures Filing (with Assignment of Rents) dated January 14,2003 executed by
Developer, as trustier, in favor of Agency, as beneficiary, and recorded on in the
Official Records of the County of Riverside, California as Document No. 2002-201994
(the "Deed of Trust").
C. City and Developer desire to clarify and modify some of the terms
of the DDA and the Agency Loan.
D. The approval of this First Amendment by the Agency constitutes
an action by the City to implement an adopted Housing Assistance Plan by acquiring
interests in housing units to assure they are affordable to persons of low and moderate
income. Therefore, the Project is exempt from the provisions of the California
Environmental Quality Act pursuant to Section 15326 of the CEQA Guidelines (Title 14
of the California Code of Regulations).
Section 2. The City Council hereby approves that certain agreement entitled
"First Amendment to DDA and Promissory Note" between the Agency and 28500 Pujol
Street, a California Limited Partnership, with such changes in each document as may be
mutually agreed upon by the Developer and the City Manager as are in substantial
conformance with the form of such Agreement which on file in the Office of the City
R:\Housing 2002\cbhamendcityreso.DOC
Clerk. The Mayor is hereby authorized to execute the Agreement, including related
exhibits and attachments on behalf of the City. A copy of the final Agreement when
executed by the Mayor shall be placed on file in the Office of the City Clerk.
Section 3. The City Manager (or his designee), is hereby authorized, on behalf
of the Agency, to take all actions necessary and appropriate to carry out and implement
the Agreement and to administer the Agency's obligations, responsibilities and duties to
be performed under the Agreement and related documents, including but not limited to
the Promissory Note, Deed of Trust, Regulatory Agreement, acceptances, escrow
instructions, certificates of completion and such other implementing agreements and
documents as contemplated or described in the Agreement.
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 at a regular meeting held on the 24th day of June, 2003.
Jeff Stone, Mayor
ATTEST:
Susan W. Jones, CMC
City Clerk
[SEAL]
R:\Housing 2002\cbhamendcityreso.DOC
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan Jones, CMC, Secretary of the Redevelopment Agency of the City of
Temecula, do hereby certify that Resolution No. RDA 03- was duly and regularly
adopted by the Board of Directors of the Redevelopment Agency of the City of Temecula at a
regular meeting thereof, held on the 24th day of June, 2003, by the following vote, to wit:
AYES:
BOARDMEMBERS:
NOES:
BOARDMEMBERS:
ABSENT:
BOARDMEMBERS:
ABSTAIN:
BOARDMEMBERS:
Susan W. Jones, CMC
City Clerk/Agency Secretary
R:\Housing 2002\cbhamendcityreso.OOC
FIRST AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT
THIS FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT
AGREEMENT (the "Amendment") is dated as of June, 2003 and is entered into by and between
the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate
and politic ("Agency") and 28500 PUJOL ST., L.P., a California limited partnership
("Developer").
RECITALS
A. Agency and Developer entered into a Disposition and Development Agreement
dated in 2003 (including all exhibits thereto, the "DDA") which provided for, among other
things, the sale of certain land and improvements by Agency to Developer (the "Property"), a
loan by Agency to Developer to be used for the development of the Property as an affordable
rental project (the "Agency Loan") and the execution, delivery and recordation of a Regulatory
Agreement between Agency and Developer (the "Regulatory Agreement"). Capitalized terms
used but not defined in the Amendment shall have the meanings ascribed thereto in the DDA.
B. Agency and Developer have agreed to modify the DDA and the Agency Loan
Documents (defined below) as hereinafter set forth in order to accommodate tax credit investors
in the Developer.
NOW, THEREFORE, in consideration of the foregoing recitals and other consideration,
the adequacy of which is hereby acknowledged, Agency and Developer hereby agree as follows:
1. DDA Modifications. The DDA is hereby modified as follows:
(i) The name of the Developer in the DDA, the Grant Deed, and the Regulatory
Agreement is changed from "28500 Pujol Street, L.P." to "28500 Pujol St., L.P." (and the same
change shall be made to the documents evidencing, securing or otherwise relating to the Agency
Loan, hereinafter collectively referred to as the "Agency Loan Documents"). Such modifications
- .. . - .correct-an-error-in-transcriptien-and-oo-not-alter-the-identity-of-the-Eleveloper;' - . - - . ---
(ii) Notwithstanding Section 4.10 of the DDA, the following shall be permitted
provided Agency receives prior written notice thereof with the copies of the transfer documents
relating thereto (and the Agency Loan Documents shall also permit the following by language
added to elfch document that reflects it is subject to the DDA, as amended by this First
Amendment):
(a) a transfer of a limited partnership interest in Developer, a transfer of a limited
partnership interest in Developer's limited partner, and the admission of the transferees as
limited partners of either Developer or admission of the transferees as limited partners of
either Developer or Developer's limited partner, provided that in each case the transferee of
such interest is an Affiliate (as hereinafter defined) of Developer's existing limited partner,
and (b) removal and replacement of Developer's general partner, provided that the removed
general partner is replaced by an Affiliate (as hereinafter defined) of Developer's existing
R:\Housing 2Q02\FlrstamendddaR WOLMAN 1_7 3681 O_2.DOC7368I 0.2
limited partner. For the purposes of this paragraph, the term "Affiliate" shall mean Multi-
Housing Investments, lLC, Simpson Housing Limited Partnership, Simpson Housing
Solutions, lLC (each a "Simpson Entity" and collectively, "Simpson Entities") or any entity
in which a Simpson Entity or Simpson Entities is a "controlling person" (as defined in
Section 20(a) of the Securities Exchange Act of 1934, as amended) or in which a Simpson
Entity or Simpson Entities is (A) the general partner of, (B) the managing member of, or (C)
a limited partner or a investor member owning more than 49% of the limited partner or
membership interests in such limited partnership or limited liability company.
Additionally, Developer may amend its Agreement of Limited Partnership, from time to
time, with prior notice to Agency attaching the applicable amendment, to: (A) correct
scrivener's errors; (B) make such agreement consistent with other provisions of the DDA and
the other documents executed in connection with the DDA; (C) bring such agreement into
compliance with the requirements of the California Tax Credit Allocation Committee or any
successor agency or Section 42 of the Internal Revenue Code of 1986, as amended, or the
requirements of the California Debt Limit Allocation Committee or any successor agency or
Section 103, 142, 146 or other applicable sections of the Intemal Revenue Code of 1986, as
amended, or the any regulations adopted thereunder; (D) comply with the decision of any
court of competent jurisdiction; (E) vary the allocation of items of profit, loss, credit and
deduction, the distribution of available cash or net cash flow; (F) effect changes in the
Developer's partners to the extent permitted above; and (G) make other changes which do
not affect the enforceability of the DDA or the documents executed in connection with the
DDA, the liability of the signatories thereto or otherwise violate or cause a violation of any
provision of the DDA or the documents executed in connection with the DDA.
(Hi) As used herein the term "Event of Default" shall mean a default by Developer
under the Agency Loan Documents or DDA that continues after any notice of default that
Agency is required to give to Developer under the DDA or Agency Loan Documents (but not
applicable law) has been given and any cure period applicable under the DDA or the Agency
Loan Documents (but not applicable law) has expired. Subject to the last sentence of this
paragraph, Developer's limited partner(s) (collectively, "Limited Partner") shall have the right
but not the obligation to cure any curable Event of Default of Developer under the DDA (as
.u _ _amended)_and_the Agenc}'.Loan.Documents_(and.a.Yiolation_of the.restrictions.on_transfer_of-the
Property shall not be deemed curable), and the Agency agrees to accept any cure tendered and
completed by Limited Partner on behalf of Developer (a) in the case of a non-monetary Event of
Default within thirty (30) days after notice of Event of Default, is given, and (b) in the case of a
monetary Event of Default, within ten (10) business days after notice of the Event of Default is
given. Subject to the last sentence of this paragraph, if the cure of a non-monetary Event of
Default requires more than the cure period provided in this paragraph, Limited Partner shall be
entitled to the same extension rights as Developer as set forth in Section 19(c) of the DDA,
provided Limited Partner promptly commences to cure the Event of Default and thereafter
diligently pursues or prosecutes such cure to completion. In addition to any notice required to be
given by Agency to Developer, Agency shall give concurrent written notice of any Event of
Default under the Loan Documents to Limited Partner as follows at the address set forth in
clause (vi) below; such notice shall not constitute notice to the Developer. The notice shall
specify: (a) the nature of the event or deficiency giving rise to the Event of Default, and (b) for
non-monetary defaults, the action required to cure the event or deficiency, if an action to cure is
possible and can be readily ascertained. Notwithstanding the foregoing, in no event shall
2
lI087-0001\7368IOvl.doc
Limited Partner's right to cure an Event of Default extend beyond five (5) calendar days prior to
Agency's foreclosure of its interest in the Property.
(iv) The Agency Loan Documents shall include provisions that, in the event of a
default thereunder, limit the Agency's recourse to the Property, subject to non-recourse
exceptions that are normal and customary for real estate secured loans, as approved by the
director of the Agency.
(v) The Agency Loan Agreement shall be revised to require commercial broad form
general public liability insurance of at least $4,000,000 (rather than $3,000,000).
(vi) The address for notices for the Developer's limited partners shall be as follows
(and notices to them shall be given in accordance with the DDA), but notice to them shall not
constitute notice to the Developer):
Multi-Housing Investments, LLC
320 Golden Shore, Suite 200
Long Beach, CA 90802
Attention: Legal Dept.
Telephone: (562) 256-2000
Fax: (562) 256-2002
2. General Provisions.
a. General Provisions. This Agreement constitutes the entire agreement between the
parties pertaining to the subject matter hereof, and supersedes all prior agreements and
understandings of the parties with respect to the subject matter hereof. This Agreement may not
be modified, amended, supplemented, or otherwise changed, except by a writing executed by
both parties hereto.
b. Waiver. No failure or delay by any party in the exercise of any right hereunder shall
constitute a waiver thereof, nor shall any single or partial exercise of any such right preclude
. . ___othe~()r fllrther eXt:rclse th,ereof, or_ an)' <>.the!', tjgh~.
c. Counteroarts. This Amendment may be executed in two or more counterparts and by
different parties hereto on separate counterparts, each of which when so executed and delivered
shall be deemed an original and all of which, when taken together, shall constitute one and the
same instrument.
d. Governing Law. This Amendment shall be deemed to be a contract made under the
laws of the State of California and for all purposes shall be governed by and construed in
accordance with the laws of the State of California.
e. Attornevs' Fees and Costs. If a dispute arises under or in connection with this
Amendment (including, without limitation, the enforcement or interpretation of this
Amendment), the prevailing party (as determined by the trier of fact) shall be entitled to recover
its reasonable attorneys' fees and costs from the other party.
3
II087-0001\7368IOvl.doc
IN WITNESS WHEREOF, the Parties have entered into this agreement as of the day and
year first above written.
28500 PUJOL ST., L.P.,
a California limited partnership
By: Lynx Realty & Management, LLC,
a California limited liability company,
its Administrative General Partner
By:
Charles Brumbaugh,
Managing Member
By: Corporation for Better Housing,
a California corporation, its Managing General Partner
By:
Charles Brumbaugh
Executive Director
TEMECULA REDEVELOPMENT AGENCY,
a public body, corporate and politic
By:
Ron Roberts, Chairperson
A TIEST:
Susan W. Jones, CMC
City Clerk/Agency Secretary
APPROVED AS TO FORM:
. Peter Thorson
Agency Counsel
4
II087-000J\7368IOvLdoc
TEMECULA COMMUNITY
SERVICES DISTRICT
ITEM 1
MINUTES OF A REGULAR MEETING
OF THE TEMECULA COMMUNITY SERVICES DISTRICT
JUNE 10, 2003
A regular meeting of the City of Temecula Community Services District was called to order at 8:15
P.M., at the City Council Chambers, 43200 Business Park Drive, Temecula, California. President
Comerchero presiding.
ROLL CALL
PRESENT:
5
DIRECTORS:
Naggar, Pratt, Roberts, Stone,
Comerchero
ABSENT:
o
DIRECTORS:
None
Also present were General Manager Nelson, City Attorney Thorson, and City Clerk Jones.
PUBLIC COMMENTS
No comments.
CONSENT CALENDAR
1 Minutes
RECOMMENDATION:
1.1 Approve the minutes of May 27, 2003.
2 Award of Construction Contract for the Rancho California Sports Park ADA Access
Proiect No. PW02-06CSD
RECOMMENDATION:
2.1 Award a construction contract to International Pavement Solutions, Inc. in the
amount of $36,463.00 for the Rancho California Sports Park ADA Access -
Project No. PW02-06CSD - and authorize the President to execute the contract:
2.2 Authorize the General Manager to approve change orders not to exceed the
contingency amount of $3,646.30 which is equal to 10% of the contract amount.
3 Professional Services AQreement for TCSD Landscape Plan Check and Inspection
Services
RECOMMENDATION:
3.1 Approve a Professional Services Agreement with PELA, a landscape
architectural firm, for TCSD landscape plan check and inspection services in the
amount of $60,000 and authorize the Board President to execute the agreement.
Minules.csdl061003
4 Acceptance of Landscape Bonds and Aoreements for Parcel Map No. 29535 -
Roripauoh Ranch
RECOMMENDATION:
4.1 Accept the agreement and surety bonds from Ashby USA, LLC to improve the
perimeter slopes and parkways along Murrieta Hot Springs Road within Parcel
Map No. 29535.
5 Landscape Maintenance Services Contract for all Citv facilities
RECOMMENDATION:
5.1 Award a 36-month contract to American Landscape Management, Inc.; authorize
the expenditure of $494,150.00 for landscape maintenance services for city
sports parks and north slopes; and approve a 10% contingency for extra work
items in the amount of $49,415.00. Contract term shall commence July 1, 2003
and continue through June 30, 2006;
5.2 Award a 36-month contract to Mariposa Horticultural Enterprises, Inc.; authorize
the expenditure of $290,160.00 for landscape maintenance services to provide
landscape maintenance services for neighborhood parks; and approve a 10%
contingency in the amount of $29,016.00 for extra work items. Contract term
shall commence on July 1, 2003 and continue through June 30, 2006;
5.3 Award a 36-month contract to Pierre Sprinkler and Landscape; authorize the
expenditure of $386,820.00 for landscape maintenance services to provide
landscape maintenance services for medians, facilities, and south Slopes; and
approve a 10% contingency in the amount of $38,682.00 for extra work items.
Contract term shall commence on July 1, 2003 and continue through June 30,
2006.
MOTION: Director Stone moved to approve Consent Calendar Item Nos. 1 - 5. The motion was
seconded by Director Naggar and voice vote reflected unanimous approval.
DISTRICT BUSINESS
6 Review and Adoption of the FY 2003-04 Annual Operatina Budoet
RECOMMENDATION:
6.1 Adopt a resolution entitled:
RESOLUTION NO. CSO 03-09
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING
THE FY 2003-04 ANNUAL OPERATING BUDGET AND
ESTABLISHING CONTROLS ON CHANGES IN
APPROPRIATIONS
Minutes.csd\061003
2
As was previously reviewed and discussed by the District at the May 15, 2003, Budget
Workshop, General Manager Nelson highlighted the District Operating Budget (as per agenda
material).
Reiterating that each Director has met with staff and has reviewed the proposed budget,
Director Mayor Stone relayed his pleasure with the proposed budget; commended Community
Services Director Parker and his staff on an outstanding budget; thanked the citizens for
supporting the City by locally spending their money; and briefly referenced the upcoming
summer events/activities.
Echoing Director Stone's comments, Director Naggar relayed his delight with the upcoming
Summer Months Activities of Recreation in Temecula (SMART) Program, the Free Swimming
Program, the Movies in the Park Program, etc.; and commented on the soon-to-be completed
Guide to parks/trails/and recreation facilities; and in closing, as well commended the Community
Services Department on a job well done.
Also commending Public Works Director Hughes and the Community Services Department on a
job well done, President Comerchero commented on the SMART Program and commended
Director Stone on having the vision for such a program.
MOTION: Director Stone moved to approve the item. The motion was seconded by Director
Naggar and voice vote reflected unanimous approval.
DIRECTOR OF COMMUNITY SERVICES REPORT
Thanking the Community Services District for its support, Community Services Director Parker
informed the Directors and public that the Recreation Brochure has been mailed and invited the
public to partake in the upcoming summer programs.
GENERAL MANAGER'S REPORT
General Manager Nelson relayed his appreciation of the District's support.
BOARD OF DIRECTORS' REPORTS
Director Naggar apprised the Directors as well as the public of an upcoming production of Winnie
the Pooh by the Fine Arts Network, opening on June 13, 2003.
Minutes.csd\061003
3
ADJOURNMENT
At 8:32 P.M., the Temecula Community Services District meeting was formally adjourned to
Tuesday, June 24, 2003, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive,
Temecula, California.
Jeff Comerchero, President
ATTEST:
Susan W. Jones, CMC
City Clerk/District Secretary
[SEAL]
Minutes.csdl061 003
4
ITEM 2
"
APPROVA
CITY ATTORNEY
FINANCE DIRECTOR
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
Board of Directors
Herman D. Parker, Director of Community serviceg
June 24, 2003
DATE:
SUBJECT:
First Amendment to the Janitorial Maintenance Services Contract for
Park Restrooms and Picnic Shelters br FY 2003-04
PREPARED BY:
Kevin T. Harrington, Maintenance superintendent~
That the Board of Directors
RECOMMENDATION:
1. Approve the First Amendment with Grace Building Maintenance Company, which will exercise
the City's option for a one-year extension of the Agreement The Agreement will be extended
through June 30, 2004.
2. Authorize the expenditure of funds in the amount of $ 53,730.00 for Janitorial Maintenance
Services.
3. Approve a 10% contingency in the amount of$5,373.00.
BACKGROUND: The Temecula Community Services Department (TCSD) released a Request
for Proposal (RFP) for Park Restroom and Picnic Shelter Janitorial Maintenance Services on July 5,
2001 as directed by the Board of Directors. The TCSD received several proposals, which were
evaluated to determine qualifications and to assess the competitiveness of the pricing. Grace
Building Maintenance Company was determined to be the lowest qualified bidder for the required
services. A Contract with 2 one-year extensions was awarded to Grace Building Maintenance
Company effective August 14,2001 thru June 30, 2003. The First Amendment is now requested to
authorize a one (1) year extension, as permitted per the Agreement The current contract is for
$82,060.00. The cost to provide services for fiscal year 2003-2004 is $53,730.00. This additionai
year of service will increase the total contract amount to $135,790.00
R:\HARRINGK\AGENDA.RPT\CC Grace Building Maintlst Amend 2003-Q4.doc
.
FISCAL IMPACT: Sufficient funds have been included in the Annual Operating Budget for fiscal
year 2003-04 in accounts:
190-180- 999- 5250,190-180-999-5212,001-164-603-5250
ATTACHMENTS:
1) Original Agreement
2) Amendment NO.1
R:\HARRINGK\AGENDA.RPT\CC Grace Building Maintlst Amend 2003-04.doc
FIRST AMENDMENT TO AGREEMENT BETWEEN TEMECULA
COMMUNITY SERVICES DISTRICT AND GRACE BUll DING
MAINTENANCE COMPANY
THIS FIRST AMENDMENT is made and entered into as of July 1, 2003 by and between the
Temecula Community Services District ("City") and Grace Building Maintenance Company
("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties
agree as follows:
1. This Amendment is made with respect to the foilowing facts and purposes:
A. On August 14, 2001 the City and Grace Building maintenance Company
entered into that certain agreement entitled "City of Temecula Agreement
Maintenance Services" ("Agreement").
B. The parties now desire to amend the Agreement as set forth in this
Amendment. The City desires to exercise its option to extend the Agreement
term for one year, also the parties desire to increase the payment for
services in the amount of $53,730.00.
2. TERM. The term of the Agreement is extended to June 30, 2004.
3. PAYMENT. 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 fuil, based upon actual time spent on the above
tasks. Any terms in Exhibit B other than the payment rates and schedule of payment
are nuil and void. This amount shail not exceed One Hundred Thirty Five
Thousand Seven Hundred Ninety Dollars and 00 Cents ($135,790.00) for
janitorial maintenance services, for the term of the Agreement, unless additional
payment is approved as provided in this Agreement.
3. Except for the changes specifically set forth herein, ail other terms and conditions of
the original Agreement shail remain in 1iJiI force and effect.
R:\HARRINGKlAGREEMNnGRACE SUlilllNG MAlNTENANCE1ST AMENDMfNT2003.DOC
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF TEMECULA
BY:
Jeffrey Comerchero, President
ATTEST:
BY:
Susan W. Jones, CMC
City Clerk
Approved As to Form:
BY:
Peter M. Thorson, City Attorney
CONTRACTOR:
Grace Buildinq Maintenance Company
BY:
NAME:
TITLE:
BY:
NAME:
TITLE:
R:\HARRINGKlAGREEMNnGRACE BUILDING MAINTENANCE/ST AMENDMfNT2003.DOC
CITY OF TEMECULA
PAYMENT RATES AND SCHEDULE
PRICING SHEET
EXHIBIT B
DESCRIPTION ADDRESS PRICE PER PRICE PER
MONTH YEAR
RESTROOM MAINTENANCE ...
Sam Hicks Monument Park 41970 Moreno Road $195.00 $2,340.00
61h Street Parking Lot Restroom 41952 Sixth Street $195.00 $2,340.00
Pala Community Park 44900 Temecula Lane $195.00 $2,340.00
Rancho California Sports Park (Rancho 30875 Rancho Vista $195.00 $2,340.00
Vista field) Road
Skate Park Restroom (At Rancho Calibrnia 42569 Margarita Road $195.00 $2,340.00
Sports Park)
North/South Restroom (At Rancho 42775 Margarita Road $195.00 $2,340.00
California Sports Park)
Kent Hintergardt Memorial Park 31465 Via Cordoba $195.00 $2,340.00
Paloma Del Sol Park 32099 De Portola Road $195.00 $2,340.00
Butterfield Stage Park 33654 De Portola Road $195.00 $2,340.00
Temeku Hills Park (Playground restroom) 31367 La Serena $195.00 $2,340.00
Temeku Hills Park (Snack bar restroom) 31367 La Serena $195.00 $2,340.00
Temecula Duck Pond 28250 Ynez Road $195.00 $2,340.00
Winchester Creek Park 39950 Margarita Road $195.00 $2,340.00
Margarita Community Park 29119 Margarita Road $195.00 $2,340.00
Temecula Valley High School (Tennis 31555 Rancho Vista $195.00 $2,340.00
courts) Road
Meadows Park 43110 Meadows $195.00 $2,340.00
Parkway
R:\HARRfNGKIAGREEMNTlGRACE BUlllJlNG MAINTENANCE1ST AMENDM3NT2003.DOC
, .. .
CITY OF TEMECULA
PAYMENT RATES AND SCHEDULE
PRICING SHEET
EXHIBIT B (Continued)
DESCRIPTION ADDRESS PRICE PER PRICE PER
MONTH YEAR
RESTROOM MAINTENANCE .... ..\ .
. ...
Crowne Hill Park 33203 Old Kent Road $195.00 $2,340.00
Temecula Elementary School Pool House 41951 Moraga Road $195.00 $2,340.00
Pauba Ridge Park (10 months) Pauba Road at Via Del $195.00 $1,950.00
Monte
.... .'
SUBTOTAL $3,705.00 $44,070.00
.... .... ... . ...
GAZEBO/PICNIC SHELTER -- . AOORE$$ ~RlcE~ER PRICE PER
.... ..... .......
MAINTENANCE . MONTH YEAR
Sam Hicks Monument Park (1 Shelter) 41970 Moreno Road $115.00 $1,380.00
Winchester Creek Park (2 Shelters) 39950 Margarita Road $115.00 $1,380.00
Rancho California Sports Park (1 Shelter) 41569 Margarita Road $115.00 $1,380.00
Pala Community Park (3 Shelters) 44900 Temecula Lane $115.00 $1,380.00
Margarita Comrnunity Park (2 Shelters) 29119 Margarita Road $115.00 $1,380.00
Ternecula Duck Pond (1 Shelter) 28250 Rancho $115.00 $1,380.00
California Road
Temeku Hills Park (1 Shelter) 31367 La Serena Way $115.00 $1,380.00
SUBTOTAL $805,00 $9,660.00
... .
RESTROOM MAINTENANCE AND ·
GAZEBO/PICNIC SHELTER
MAINTENANCE
$53,730.00
R:1HARRINGK\AGREEMtmGRACE BU/WING MAINTENANCE1ST AMENDMff/T2003.DOC
~ ,. . -,
DESCRIPTION
Maintain an additional park
restroom, which will include both
men and women areas, totaling
approximately 500 s.f. to 900s.f.
DESCRIPTION
Provide Supplemental Restroom
Maintenance Services for
Special Events.
Provide General Janitorial
Maintenance Services
ADDITIONAL SERVICE ITEMS
SCOPE O.F WORK
.. .....
May be added to contract as new
facilities are constructed. llibre then
one restroom building may be
added during contract term.
Maintain per above
Specifications/Scope of Work,
Exhibit A above.
SCOPE OF WORK
. . .'
Provide Staff to clean and stock
restroom facility (both men and
women restrooms) hourly per
Exhibit "A" Daily Requirements.
Provide Specified General Janitorial
Maintenance Services
R:\HARRINGKIAGREEMNTlGRACE BUIWING MAINIENANCEIST AMENDM5NT2003.DOC
PRICE PER
MONTH
$195.00
PRICE PER
HOUR
$10.50
PRICE PER
YEAR
$2,340.00
I(~ .. r
, .
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Ol-?-~(,...-
6-J
CITY OF TEMECULA
TEMECULA COMMUNITY SERVICES DISTRICT
CONTRACT AGREEMENT
FOR
JANITORIAL MAINTENANCE SERVICES
THIS MAINTENANCE CONTRACT, made and entered into as of Auaust 14.
2001, by and between the Temecula Community Services District ("District"), and Grace
Buildina Maintenance Comoanv ("Contractor"). In consideration of the mutual covenants and
conditions set forth herein, the parties agree as follows:
1. TERM. This Agreement shall commence on September 1, 2001 and shall remain
and continue in effect until June 30, 2003 unless sooner terminated pursuant to the provisions
of this Agreement. The District reserves the option to extend the Agreement under the same
terms and conditions for two (2) additional one-year terms per the attached pricing schedule in
Exhibit B.
2. SCOPE OF WORK. Contractor shall perform all of the work described in the
Scope of Work, attached hereto and incorporated herein as Exhibit A. ("Work") and shall
provide and furnish all the labor, materials, necessary tools, expendable equipment, and all
utility and transportation services required for the Work. All of said Work to be performed and
materials to be furnished for the Work shall be in strict accordance with the specifications set
forth in the Scope of Work.
3. PAYMENT. The District agrees to pay Contractor monthly, in accordance with
the payment rates and schedules and terms as set forth in Exhibit B, attached hereto and
incorporated herein by this reference as though set forth in full, based upon actual time spent
on the above tasks. This amount shall not exceed Eighty Two Thousand Sixty Dollars
($82,060.00) for Restroom and Picnic Shelter Maintenance Services and Eight Thousand Two
Hundred Six Dollars ($8,206.00) for Additional Service Items, for the total term of the
Agreement unless additional payment or change order is approved as provided in this
Agreement.
a. Contractor shall submit invoices monthly for actual services performed
detailing the work performed in a form acceptable to the Director of Finance. Invoices shall be
submitted on or about the first business day of each month, for services provided in the previous
month. Payment shall be made within thirty (30) days of receipt of each invoice as to all
nondisputed fees. If the District disputes any of contractor's fees it shall give written notice to
Contractor within 30 days of receipt of invoice of any disputed fees set forth on the invoice.
4. CHANGE ORDERS. The City Manager may approve additional payment not to
exceed 10% of the Agreement, but in no event shall such sum exceed twenty-five thousand
dollars ($25,000.00). Change orders exceeding these limits shall be approved by the Board of
Directors.
5. 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.
~
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.
6. DISTRICT APPROVAL. All labor, materials. tools, equipment, and services shall
be furnished and work performed and completed subject to the approval of the District or its
authorized representatives.
7. WAIVER OF CLAIMS. On or before making final request for payment under
Paragraph 3., above, Contractor shall submit to District, in writing, all claims for compensation
under or arising out of this contract; the acceptance by Contractor of the final payment shall
constitute a waiver of all claims against the District under or arising out of this Contract except
those previously made in writing and request for payment. Contractor shall be required to
execute an affidavit, release and indemnify agreement with each claim for payment.
8. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The District 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
District 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
District 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 District. Upon termination of the
Agreement pursuant to this Section, the Contractor will submit an invoice to the District pursuant
to Section 3.
9. 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, the District 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 City 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 defaOlt:""The"Contractor shall have- (10) days after service
upon it of said notice in which to cure the default by rendering a satisfactory performance. In
the event that the Contractor fails to cure its default within such period of time, the District 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.
10. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and
hold harmless the District, its officers, officials, employees and volunteers from and against any
and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature
which the District, 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
Contractor's negligent or wrongful acts or omissions in performing or failing to perform under the
terms of this Agreement, excepting only liability arising out of the sole negligence of the District.
,. ~ r
.,
~
,
&-.J
11. LIABILITY INSURANCE. 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 coverage
(occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87)
covering Automobile Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of
California and Employer's Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less
than:
(1) General Liability: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial General
Liability Insurance or other form with a general aggregate limit is
used, either the general aggregate limit shall apply separately to
this projecVlocation or the general aggregate limit shall be twice
the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(3) Employer's Liability: $1,000,000 per accident for bodily injury or
disease.
c. Acceptability of Insurers.' Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the District.
d. Verification of Coveraae. Contractor shall furnish the District 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. All endorsements are to
be received and approved by the District before work commences.
e. Contractor, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code which requires
every employer to be insured against liability for Workman's Compensation or
undertake self-insurance in accordance with the provisions of that Code, and I
will comply with such provisions before commencing the performance of the work
of this Contract."
12. TIME OF THE ESSENCE. Time is of the essence in this Contract.
r
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26. GOVERNING LAW. The District 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 jurisdiction over the City of Temecula.
27. 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.
28. 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.
///1
1/11
... '. ~
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed the day and year first above written.
TEMECULA COMMUNITY SERVICES DISTRICT
~
, Peter M. Thorson, City Attorney
. ..._. ^._....__~_,_..._".....-->.:~~'!"..7'..-:'O-:::;O'c.
CONTRACTOR
Grace Building Maintenance Company
BY:C~
Name: Dav~d Jeonq
Title: President
~cc,~~~~ f!!c~'~ .
Tit e: C:;"'npr" 1 M"n"gpr/"; "'",-P:rll15ident
(Two Signatures Required for Corporations)
()
, , .
.
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CITY OF TEMECULA
RESTROOM MAINTENANCE
SPECIFICATIONS/SCOPE OF WORK
EXHIBIT "A"
SCOPE OF WORK
.
Lock all facilities between 10:00 PM - 11 :00 PM.
Clean and stock all facilities between the hours of 10:00PM and 6:00AM.
Record and submit daily maintenance activities, vandalism, and graffiti on Restroom
Maintenance Checklist (Exhibit E) form to the City's Maintenance Supervisor or other
designated person. Keep and provide records as required by City representative.
Provide all necessary equipment, tools, chemicals, supplies, etc. necessary to perform
specified work.
Perform all activities in a safe manner per OSHA's requirements, utilizing all personal
safety items required to prevent accidents, illness or injury to maintenance personnel.
.
.
.
.
SPECIFICATIONS FOR CLEANING AND STOCKING FACILITY
. City to provide replenishable paper products (toilet paper, can liners, seat covers, paper
towels). Submit request for products weekly.
Sweep restrooms and remove litter from interior and exterior of building (this shall
include a 6' walkway at restroom entrance).
Empty interior trash containers and replace liners (washout containers and clean
receptacles).
Scrub and sanitize toilets and lavatories.
Wipe down all fixtures, removing water, dirt, stains and any other incongruous
substance.
Wash (hose out) floors. Squeegee excess water out of building and off of hardscape.
Remove any paper or other trash accumulated from this procedure.
Remove dirt, stains, or other debris on walls, ceilings, and light fixtures.
Stock all toilet paper, or other paper products. All dispensers to be filled daily.
Remove minor graffiti from building interior. Record on report form both graffiti removed,
as well as graffiti that you were unable to remove.
Wash floors and walls, using a pressure washer rated at a minimum of 2,200 psi. Use
cleaning and disinfectant chemicals to remove odors.
.... Picnic shelters at various parks as indicated in "Pricing Sheet" shall be cleaned Friday
and Saturday nights. Concrete and picnic tables will be washed, trash removed, trash
cans emptied aUor near shelter, and any signs or party streamers removed.
.
.
.
.
..
..
.
.
...
FREQUENCY:
. Items to be performed daily.
.. Items to be performed Mondays and Fridays.
... Items to be performed monthly.
.... Items to be performed Friday and Saturday nights.
NOTE:
The specifications are minimum requirements for the maintenance of City
restroom facilities. The restrooms shall be maintained in a neat, clean, and
sanitary condition on a daily basis. Some situations may require additional work
to be performed to insure the health and safety of the public. No additional
compensation will be given for such work. No unsafe condition shall be left
without notification of City's authorized representative.
8
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.
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CITY OF TEMECULA
PAYMENT RATES AND SCHEDULE
PRICING SHEET
EXHIBIT B
DESCRIPTION ADDRESS
RES:r
Sam Hicks Monument Park 41970 Moreno Road $195.00 $2,340.00
6 Street Parking Lot Restroom 41952 Sixth Street $195.00 $2,340.00
Pal a Community Park 44900 Temecula Lane $195.00 $2,340.00
Rancho California Sports Park (Rancho Vista field) 30875 Rancho Vista Road $195.00 $2,340.00
Skate Park Restroom (At Rancho California Sports 42569 Margarita Road $195.00 $2,340.00
Park)
North/South Restroom (At Rancho California Sports 42775 Margarita Road $195.00 $2,340.00
Park)
Kent HintergardtMemorial Park 31465 Via Cordoba $195.00 $2,340.00
, Palom~ Del Sol Park 32099 De Portola Road $195.00 $2,340.00
Butterfield Stage Park 33654 De Portola Road $195.00 $2,340.00
T emeku Hills Park (Playground restroom) 31367 La Serena $195.00 $2,340.00
T emeku Hills Park (Snack bar restroom) 31367 La Serena $195.00 $2,340.00
Temecula Duck Pond 28250 Ynez Road $195.00 $2,340.00
Winchester Creek Park 39950 Margarita Road $195.00 $2,340.00
Margarita Community Park 29119 Margarita Road $195.00 $2,340.00
Temecula Valley High School (Tennis courts) 31555 Rancho Vista Road $195.00 $2,340.00
.- .r"" ~--~-.~. "I-~: :----;::----;;---- --"[:---: .,:;--.":''-r ",:'3.J..>t.
f<< *f',~, ,f, '. "" ,., " ",' '1 .' '"",.,.
,~lt'~~:~^.~ :: ",', ,1.:J:lliffi'yI"l1"..,;" .0'Ji'P.J.':>,9!}" ,hJ,:Y,
"~'" ;, C,. I' " . ["., .v
_L1'~"It::'_.::t_ h_'::__ _-.-:~__' _ .... __ ~ _. ~_ __"_ . _ ' :.' . . '\-1' ..:)'>*.-:-
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Sam Hicks Monument Park (1Shelter) 41970 Moreno Road $1,380.00
Winchester Creek Park (2 Shelters) 39950 Margarita Road $115.00 $1,380.00
Rancho California Sports Park (1 Shelter) 41569 Margarita Road $115.00 $1,380.00
Pala Community Park (3 Shelters) 44900 Temecula Lane $115.00 $1,380.00
Margarita Community Park (2 Shellers) 29119 Margarita Road $115.00 $1,380.00
Temecula Duck Pond (1 Shelter) 28250 Rancho California $115.00 $1,380.00
Road
Temeku Hills Park (1 Sheller) 31367 La Serena Way $115.00 $1,380.00
J.X~.'r~.);>'VSvS:RT1l3'.!l;'iljS€-~x1]t," - - . r-~'---'----~- -, -'--':' - 'r --;-. .... '\~:';',~'iti,~~
. Z: ,:' iJ!~~:~~:;~b:r~~~~}~~\:'~-~.J,~J!;~X~;~~b~. . ~:~~: .lfJ~l~i;J_
ADDITIONAL SERVICE ITEMS
Maintain an additional park
restroom, which will include both
men and women areas, totaling
approximately 500 s.f. to 9005.1.
May be added to contract as new
facilities are constructed. More then
one restroom building may be added
during contract term. Maintain per
above Specifications/Scope of Work,
Exhibit A above.
$195.00
$2,340.00
Provide Supplemental Restroom
Maintenance Services for Special
Events.
Provide Staff to clean and stock
restroom facility (both men and women
restrooms) hourly per Exhibit "A" Daily
Requirements.
Provide Specified General Janitorial
Maintenance Services
$10.50
Provide General Janitorial
Maintenance Services
10
ITEM 3
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANC
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
Board of Directors
Shawn D. Nelson, General Manager
FROM:
,
~~usan W. Jones
- \jCity Clerk/Director of Support Services
June 24, 2003
DATE:
SUBJECT: Ratification of Election Results - Tract No. 19872-1, -2, -3, -4, -5 and Final (Loma
Linda Tract)
PREPARED BY:
Cheryl Domenoe, Administrative Secretary
RECOMMENDATION:
That the Board of Directors adopt a resolution entitled:
RESOLUTION NO. CSD 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CITY
OF TEMECULA COMMUNITY SERVICES DISTRICT, RECITING
THE FACT OF THE SPECIAL TEMECULA COMMUNITY
SERVICES DISTRICT MAIL-IN BALLOT ELECTION HELD ON
JUNE 12, 2003 DECLARING THE RESULTS AND SUCH OTHER
MATTERS AS PROVIDED BY LAW
BACKGROUND: At the meeting of April 22, 2003, the Board of Directors adopted Resolution
No. CSD 03-07, which called for a Special Election to be held among the property owners of the
parcels within Tract No. 19872-1, -2, -3, -4, -5 and Final (Loma Linda Tract). The purpose of this
election was to establish Service Level C rates and charges for Perimeter and Slope Landscape
Maintenance, $10.00 per residential parcel for FY 2003-04 and $20.00 per residential parcel
beginning FY 2004-05
This election was conducted by mail with a final date for acceptance of ballots to be no later than
3:30 p.m. on June 12, 2003. At 4:00 p.m. on that date, the City Clerk acting in her capacity as the
City's Election Official and as the Secretary of the Board of Directors of the Temecula Community
Services District declared the receipt period for receiving ballots closed. At 4:00 p.m., the Elections
Canvassing Board duly appointed and consisting of City Clerk Susan Jones, Deputy City Clerk
Michaela Ballreich and Administrative Secretary Cheryl Domenoe, conducted the canvass of the
results. The results of the votes cast, returned within the time allowed and publicly counted, are
included within the body of the proposed resolution.
Agenda Reports\Election eSD Tract 19872
Staff recommends adoption of the resolution ratifying the results of this election.
FISCAL IMPACT:
election results.
There is no direct fiscal impact as a consequence of the ratification of the
ATTACHMENTS:
Resolution No. CSD 03-_
Official Tally of the Votes
Vicinity Map
Agenda ReportslElection CSO Tract 19872
2
RESOLUTION NO. CSD 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA COMMUNITY SERVICES DISTRICT, RECITING THE
FACT OF THE SPECIAL TEMECULA COMMUNITY SERVICES
DISTRICT MAIL-IN BALLOT ELECTION HELD ON JUNE 12, 2003
DECLARING THE RESULTS AND SUCH OTHER MATTERS AS
PROVIDED BY LAW
WHEREAS, a Special Mail-in Ballot Election was held and conducted in the City of
Temecula, California, on June 12, 2003, as required by law; and
WHEREAS, notice of the election was given in time, form and rnanner as provided by law;
that the special election was for the purpose of obtaining approval by property owners within Tract
No. 19872-1, -2, -3, -4, -5 and Final (Loma Linda Tract), for establishment of the annual levy of
TCSD Rates and Charges for each affected parcel as follows: Service Level C Rates and Charges
for Perimeter and Slope Landscape Maintenance, $10.00 per residential parcel for FY 2003-04 and
$20.00 per residential parcel beginning FY 2004-05 was properly established; that election officers
were appointed and that in all respects the election was held and conducted and the votes were
cast, received and canvassed and the returns made and declared in time, form and manner as
required by the provisions of the Elections Code of the State of California; and
WHEREAS, pursuant to Resolution No. CSD 03-07, adopted April 22, 2003, the ballots were
returned to the office of the City Clerk/Secretary of the Temecula Community Services District; the
results were received, canvassed in public and are herein set forth in Section 2.
NOW THEREFORE, THE TEMECULA COMMUNITY SERVICES DISTRICT OF THE CITY
OF TEMECULA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. That the whole number of ballots cast in the homeowners election was one
hundred fifty-nine (159) and the whole number of provisional ballots cast in the election was none
(0).
Section 2. That the whole number of ballots cast for establishment of the annual levy for
Service Level C rates and charges for Perimeter and Slope Landscape Maintenance, $10.00 per
residential parcel for FY 2003-04 and $20.00 per residential parcel beginning FY 2004-05 on the
ballot were as follows:
92
67
o
Section 3. The Board of Directors of the Temecula Community Services District does
declare and determine that as a result of the election, a majority of the voters voting on the measure
relating to the establishment of Service Level C Rates and Charges beginning Fiscal Year 2003-04
pursuant to Article XIIID, Section 6 of the California Constitution, did vote in favor of the measure
and that the measure was carried, and shall be deemed adopted and ratified.
R:CSD Reses 2003\CSD 03-
Section 4. The City Clerk/Secretary of the T emecula Community Services District (TCSD)
shall enter in the minutes of the TCSD Board of Directors, a statement of the result of the election,
showing: (1) The whole number of ballots cast in the City; (2) The votes in favor, (3) The votes in
opposition and (4) Those received incomplete.
Section 5. The City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED AND ADOPTED, this 24th day of June, 2003.
Jeff Comerchero, President
ATTEST:
Susan W. Jones, CMC
City Clerk/Secretary
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, CMC, City Clerk/District Secretary of the Temecula Community Services
District, HEREBY DO CERTIFY that the foregoing Resolution No. CSD 03-_ was duly adopted at a
regular meeting of the Temecula Community Services District on the 24th day of June, 2003, by the
following roll call vote.
AYES:
DISTRICT MEMBERS:
NOES:
DISTRICT MEMBERS:
ABSENT:
DISTRICT MEMBERS:
ABSTAIN:
DISTRICT MEMBERS:
Susan W. Jones, CMC
City Clerk/District Secretary
R:CSD Resas 2003\CSD 03-
2
OFFICIAL TALLY OF THE VOTES FOR
TCSD LEVY/SPECIAL TAX
TRACT NO. 19872-1, -2, -3, -4, -5 and Final
BEGINNING FISCAL YEAR 2003/04
TEMECULA COMMUNITY SERVICES DISTRICT
SERVICE LEVEL C, RATES AND CHARGES FOR PERIMETER LANDSCAPING AND SLOPE
MAINTENANCE
Yes
1m~~ltU~~~
~m!nu~hi-ltW.~
'l+\.l ~ ~ m-l \\
No
~ Nl 'ii.\
t\U~)\!j
l'\4.l~tml'ijj
* l\\\.. I1-W. \I
TOTAL ,,~
TOTAL b 7
ELECTION BOARD
lerk
,
Michaela A. Ballrelch, puty City Clerk
Election Officer
~~=_~m~
Election Officer
R,IELECTIONlELECTION - GENERALICANV ASS.DOC
Lorna Linda Tract
o
200
... Fool
ITEM 4
APPROV
CITY A HORNEY
DIRECTOR OF FINA;-E
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
Board of Directors
Herman D. Parker, Director of Community service~
DATE:
June 24, 2003
SUBJECT:
Inclusion of Tracts into Service Level B and Acceptance of Slope Easement
Areas into Service Level C for Fiscal Year 2003-2004.
PREPARED BY:
Barbara Smith, Management Analyst f;\Q,-
RECOMMENDATION:
That the Board of Directors:
1. Adopt a resolution entitled:
RESOLUTION NO. CSD 03 -
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
COMMUNITY SERVICES DISTRICT ACCEPTING CERTAIN TRACTS INTO TCSD
SERVICE LEVEL B FOR PURPOSES OF FUNDING THE ENERGY CHARGES
FOR RESIDENTIAL STREET LIGHTS BEGINNING FISCAL YEAR 2003-2004.
2. Adopt a resolution entitled:
RESOLUTION NO. CSD 03 -
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
COMMUNITY SERVICES DISTRICT ACCEPTING CERTAIN SLOPE AND
LANDSCAPE AREAS WITHIN TRACT MAP NOS. 19872-1, -2, -3, -4, .5 AND -00
(FINAL) INTO SERVICE LEVEL C FOR MAINTENANCE PURPOSES BEGINNING
FISCAL YEAR 2003-2004.
3. Authorize the City Clerk/District Secretary to record the slope easement documents.
BACKGROUND: Prior to the beginning of each new fiscal year, applications are
reviewed regarding the acceptance of perimeter slope areas, residential street lighting, and the
inclusion of additional subdivisions into existing TCSD maintenance programs. Energy costs for
residential street lighting is provided through Service Level B and perimeter slope and landscape
areas are maintained through Service Level C.
R:\smithb\Assessments\03-04 Assessment\New B&C Staff&Reso.doc
06/12/01
For Fiscal Year 2003-2004, six (6) tracts and the parcels within those tracts will be levied within the
Service Level B Rates and Charges at $25.68 per parcel, as follows:
Tract Map Number
Tract No. 23143-07
Tract No. 23143-09
Tract No. 23209-00
Tract No. 24136-02
Tract No. 24187-00
Tract No. 25892-00
Total
Total No of Units
85
127
220
74
92
32
630
In addition, the following tracts have completed the necessary Proposition 218 proceedings for the
transfer of perimeter landscaping into the TCSD maintenance program beginning Fiscal Year 2003-
2004. At this time the landscaping improvements need to be designed and installed. Also,
easements must be obtained from individual property owners adjacent to Pechanga Parkway in
order for this new landscaped maintenance area to be formed. The proposed inclusion of this area
in to Service Level C, will result in the annual levy of $20.00, however for Fiscal Year 2003-2004 the
levy will only be $10.00 in anticipation of the TCSD maintaining this area for six (6) months.
Rate Level #8 - $20.00
Tract Map No. 19872-01
Tract Map No. 19872-02
Tract Map No. 19872-03
Tract Map No. 19872-04
Tract Map No. 19872-05
Tract Map No. 19872-00 (Final)
FISCAL IMPACT: Acceptance of the aforementioned tracts and the parcels within those
tracts into the appropriate service levels has been incorporated into the TCSD budgets for Service
Level Band C for Fiscal Year 2003-2004.
ATTACHMENTS:
1. Resolution to accept certain tracts into Service Level B.
2. Resolution to accept certain slopes into Service Level C
R:\smithb\Assessments\03-04 Assessmem\New B&C Staff&Reso.doc
06!I2!OI
RESOLUTION NO. CSD 03-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
COMMUNITY SERVICES DISTRICT ACCEPTING CERTAIN TRACTS INTO TCSD
SERVICE LEVEL B FOR PURPOSES OF FUNDING THE ENERGY CHARGES
FOR RESIDENTIAL STREET LIGHTS BEGINNING FISCAL YEAR 2003-2004.
THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT DOES
RESOLVE AS FOLLOWS:
Section 1. The Board of Directors does hereby find and determine as follows:
A. The Temecula Community Services District has assumed costs
associated with energizing the street lighting within the following residential Tract Map Nos.:
Tract Map Numbers No of Units
Tract Map No. 23143-07 85
Tract Map No. 23143-09 127
Tract Map No. 23209-00 220
Tract Map No. 24136-02 74
Tract Map No. 24187-00 92
Tract Map No. 25892-00 32
Total No of Units 630
B. The Temecula Community Services District is currently providing
residential street lighting services within these subdivisions through Service Level B; and
C. The Temecula Community Services District is the authorized
legislative body to accept the responsibility of energizing residential streetlights within the City of
Temecula.
Section 2. The Board of Directors of the T emecula Community Services District hereby
accepts the aforementioned residential tracts into the Service Level B rate level for residential street
lighting services beginning Fiscal Year 2003-2004.
Section 3. The Secretary shall certify to the passage and adoption of this Resolution.
R:\smithb\Assessments\03-04 Assessmem\New B&C Staff&Reso.doc
06/12/01
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula
Community Services District at a regular meeting held on the 24th of June, 2003.
Jeff Comerchero, President
ATTEST:
Susan W. Jones, CMC
City Clerk/District Secretary
[SEAL]
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss
CITY OF TEMECULA )
I HEREBY CERTIFY thatthe foregoing Resolution No. CSD 03- was duly adopted by
the Board of Directors of the Temecula Community Services District at the regular meeting thereof,
held on the 24th day of June 2003, by the following vote of the Board of Directors.
AYES:
DIRECTORS:
NOES:
DIRECTORS:
ABSENT:
DIRECTORS:
DIRECTORS:
ABSTAIN:
R:\smithb\Assessments\03-04 Assessment\New B&C Staff&Reso.doc
06/12/01
RESOLUTION NO. CSD 03 -_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
COMMUNITY SERVICES DISTRICT ACCEPTING CERTAIN SLOPE AND
LANDSCAPE AREAS WITHIN TRACT MAP NOS. 19872-1, -2, -3, -4, -5 AND-OO
(FINAL) INTO SERVICE LEVEL C FOR MAINTENANCE PURPOSES BEGINNING
FISCAL YEAR 2003-2004.
THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT DOES
RESOLVE AS FOLLOWS:
Section 1.
The Board of Directors does hereby find and determine as follows:
A. As a result of the passing of a property owner election for Tract Map Nos.
19782-1, -2, -3, -4, -5 and -0 (Final) the property owners have requested that the TCSD assume
maintenance of the landscaping along Pechanga Parkway between the property owners fence
line and sidewalk and within the right of way along Via Gilberto; and,
B. The annual parcel charges for perimeter landscaping and slope
maintenance services pursuant to Proposition 218, were established by the majority of the
property owners of the various tracts, and
C. The Temecula Community Services District is the existing authorized
legislative body authorized to provide maintenance of perimeter slope and landscape areas
within the aforementioned developments.
Section 2.
hereby accepts:
The Board of Directors of the Temecula Community Services District
A. The offer of dedication for the improved slopes and perimeter landscaping
within Tract Map Nos. 19782-1, -2, -3, -4, -5 and -0 (Final), and
Section 3.
The Secretary shall certify to the passage and adoption of this Resolution.
R:\smithb\Assessrnents\03-04 Assessment\New B&C Staff&Reso.doc
06/12/01
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Community
Services District at a regular meeting held on the 24th of June, 2003.
Jeff Comerchero,
President
ATTEST:
Susan W. Jones, CMC
City Clerk/District Secretary
[SEAL]
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss
CITY OF TEMECULA )
I HEREBY CERTIFY that the foregoing Resolution No. CSD 03- was duly
adopted by the Board of Directors of the Temecula Community Services District at the regular
meeting thereof, held on the 24th day of June, 2003, by the following vote of the Board of
Directors.
AYES:
DIRECTORS:
NOES:
ABSENT:
ABSTAIN:
DIRECTORS:
DIRECTORS:
DIRECTORS:
R:\smithb\Assessments\03-04 Assessment\New B&C Slaff&Reso.doc
06/12/01
ITEM 5
APPROVA~
CITY ATTORNEY
DIRECTOR OF FIN~ fj(<L
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
Board of Directors
Herman D. Parker, Director of Community Service
June 24, 2003
DATE:
SUBJECT:
TCSD Proposed Rates and Charges for Fiscal Year 2003-2004
PREPARED BY:
Barbara Smith, Management Analyst
RECOMMENDATION:
That the Board of Directors:
1. Adopt a resolution entitled:
RESOLUTION NO. CSD 03-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING
RATES AND CHARGES FOR SERVICE LEVEL B - RESIDENTIAL
STREET LIGHTING, SERVICE LEVEL C - PERIMETER
LANDSCAPING, AND SERVICE LEVEL D - REFUSE AND
RECYCLING COLLECTION SERVICES FOR FISCAL YEAR 2003-
2004
2. Adopt a resolution entitled:
RESOLUTION NO. CSD 03-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING
RATES AND CHARGES FOR SERVICE LEVEL R - ROAD
MAINTENANCE SERVICES FOR FISCAL YEAR 2003-2004
BACKGROUND: The purpose of the TCSD Rates and Charges is to provide necessary
community services and programs to property owners within the City of Temecula. The TCSD
operates under the authority of Community Services District Law and its boundaries are the same as
those of the City of Temecula.
R:\smithb\Assessments\03-04 Assessmem\Staff-BCD&R.doc
06/11/01
Property owners pay only for the TCSD services used or made available to their property through
separate rates and charges on their property tax bill. The Community Services, Parks and
Recreation and Service Level A Rates and Charges previously levied by the TCSD were replaced by
the City's ParkslStreet Lighting Special Tax, approved by the voters as Measure C on March 4,
1997. Although the TCSD continues to operate and maintain the parks and recreational facilities
through a cooperative agreement with the City, the actual levy budget for the special tax was
considered and approved by the City Council on June 10, 2003.
As a result, the TCSD is currently comprised of the following four (4) remaining service levels:
1. Service Level B - Residential Street Liqhts. Operations, maintenance, utility costs
and administration of residential street lighting.
2. Service Level C - Perimeter Landscapinq. Operations, maintenance, utility costs,
improvements, and administration for all perimeter landscaping and slope
maintenance areas maintained by the TCSD.
3. Service Level D - Refuse and Recvclinq Collection. Operation and administration of
the refuse and recycling program, and street sweeping services for single family
residential homes.
4. Service Level R - Road Maintenance. Operations, construction, and
maintenance of certain unpaved streets and roads in the City.
Service Level "B" includes only those parcels within residential subdivisions that receive street
lighting services. The proposed rate of $25.68 per property owner has not been increased from last
fiscal year.
Service Level "C" includes only those parcels within residential subdivisions receiving TCSD
perimeter landscaping and slope maintenance. The rate C-8 is a new landscape area within Tract
19872 located on Pechanga Parkway between Loma Linda Road and Via Gilberto. The previously
existing seven (7) rate levels for Service Level "C" will not increase from last year. The rate levels
are identified as follows:
Rate C-1:
Rate C-2:
Rate C-3:
Rate C-4:
Rate C-5:
Rate C-6:
Rate C-7:
Rate C-8
$ 46.00
$ 89.00
$116.00
$175.00
$ 70.00
$225.00
$129.00
$ 20.00*
*For Fiscal Year 2003-2004 the assessment will be $10.00. Landscaping will only be in
place for approximately six (6) months.
Service Level "D" provides refuse, recycling and street sweeping services to all single-
family residential properties in the City of Temecula. Service Level D residential rates
have not increase in the past four years. The Fiscal Year 03-04 residential rates for solid
waste refuse and street sweeping are proposed to increase from the past four years' rate
of $172.56 to $176.28 for an annual increase of $3.72 per single-family dwelling unit.
R:\smithb\Assessments\03-04 Assessmem\Scaff.BCD&R.doc
06/11/01
The proposed rate change is based on an increase in the 2002 Consumer Price Index
(CPI).
Service Level "R" includes only those parcels, which receive services for the maintenance of certain
unpaved roads that become inaccessible after inclement weather. The proposed rates for this
service level will not increase from last year. The two (2) rate levels for Service Level R are identified
as follows:
Residential Rate R-1:
Vacant Rate R-1:
$115.26
$ 57.64
$121.92
$ 60.96
Residential Rate R-2:
Vacant Rate R-2:
The levy formula used to fund these services has not been changed from last fiscal year. Only
those property owners who receive services from a particular service level pay for those services. In
summary, the average single-family residence receiving benefit from all service levels will see a
small increase in Service Level D and parcel owners within Tract Map No. 19782 will see Service
Level C assessment for the first time for Fiscal Year 2003-2004.
The levy and collection of the TCSD Rates and Charges is exempt from the provisions of the
California Environmental Quality Act (CEQA) pursuant to Section 21080 (b)(8) of the California
Public Resources Code and Section 15273 of the State Guidelines because the rates and charges
are necessary to maintain existing services within the TCSD.
FISCAL IMPACT: The total Levy Budget for Service Levels B, C, and D for Fiscal Year
2003-2004 is $4,824,671. The total Levy Budget for Service Level R is $12,755. The revenue
generated from the TCSD Rates and Charges will fund perimeter landscaping; residential street
lighting; refuse and recycling collection services; and unpaved road maintenance in the City of
Temecula.
ATTACHMENTS:
1.
2.
3.
Resolution No. CSD 03-_ Service Levels B, C, and D.
Resolution No. CSD 03-_ Service Level R
Final Annual Levy Report for Fiscal Year 2003-2004.
R:\yasinobk\TCSDLEVY.2QOObod
061300
RESOLUTION NO. CSD 03-13
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING
RATES AND CHARGES FOR SERVICE LEVEL B - RESIDENTIAL
STREET LIGHTING, SERVICE LEVEL C - PERIMETER
LANDSCAPING, AND SERVICE LEVEL D - REFUSE AND
RECYCLING COLLECTION SERVICES FOR FISCAL YEAR 2003-
2004
THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICE DISTRICT
HEREBY FINDS, RESOLVES, DECLARES, DETERMINES AND ORDERS AS FOLLOWS:
Section 1. Upon incorporation of the City ofTemecula, effective December 1, 1989,
voters approved the formation of the Temecula Community Services District ("TCSD"), to provide
specified services to properties within its jurisdiction.
Section 2. Pursuant to Govemment Code Sections 61621 and 61621.2, the TCSD
has prescribed, revised and collected rates and charges for the services furnished by it, and has
elected to have these rates and charges collected on the tax roll in the same manner, by the same
persons, and at the same time as, together with and not separately from, property taxes within the
TCSD in the manner prescribed by Government Code Sections 61765.2 to 61765.6, inclusive. By
previous resolution, the TCSD proposed to continue such rates and charges for the operation,
maintenance. service and administration of residential street lighting, perimeter landscaping, and
recycling and refuse collection services for Fiscal Year 2003-2004.
Section 3. Pursuant to Government Code Section 61621.2, the TCSD caused a
written report ("Report") to be prepared and filed with the Secretary of the TCSD, which Report
contains a description of each parcel of real property and the proposed amount of the rates and
charges for Fiscal Year 2003-2004. The Report is based upon a budget adopted by the Board of
Directors for the proposed services for specific areas where such services are provided, including
necessary staff and administrative expenses. A summary or the Report containing the proposed
rates and charges is attached hereto as Exhibit A, entitled "Project Summary", and incorporated
herein by this reference. A copy of the Report is on file in the office of the Secretary of the TCSD,
and is available for public inspection.
Section 4. By previous resolution, the Board of Directors acknowledged the filing of
the Report, and appointed a time and place for a public hearing on the Report and the proposed
rates and charges. Notice of the public hearing was mailed and published as required by law and
affidavits of publication and mailing are on file with the Secretary of the TCSD.
Section 5. On June 24, 2003, the Board of Directors conducted a public hearing on
the Report and the proposed rates and charges. At the public hearing, the Board of Directors heard
and considered all oral and written objections, protests and comments by any interested person
concerning the Report, the proposed rates and charges, and the method of collection of such rates
and charges.
R:\Resos Cormn Serv District\Resos 2003\03.13.doc
Section 6. The Board of Directors hereby finds that, based on the Report and the
District budget, the rates and charges as set out on Exhibit "A" do not exceed the reasonable cost of
the services to be provided by the TCSD for Fiscal Year 2003-2004.
Section 7. The Board of Directors hereby overrules any and all objections and
protests and adopts the rates and charges for residential street lighting, perimeter landscaping, and
refuse and recycling collection services for Fiscal Year 2003-2004 as set out on Exhibit "A" for the
services to be provided by the TCSD for Fiscal Year 2003-2004.
Section 8. The TCSD shall collect such rates and charges at the same time and in
the same manner and by the same persons as, together with and not separately from, the property
taxes collected within the TCSD. These rates and charges shall be delinquent at the same time and
thereafter be subject to the same delinquency penalties as such property taxes. All laws applicable
to the levy, collection, and enforcement of property taxes, including, but not limited to, those
pertaining to the matters of delinquency, correction, cancellation, refund and redemption, are
applicable to these rates and charges, except for California Revenue and Taxation Code Section
4831. However, iffor the first year the charge is levied, the real property to which the charge relates
has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide
encumbrancer for value has been created and attaches thereon, prior to the date on which the first
installment of such taxes appear on the roll, then the charge shall not result in a lien against the
property, but instead shall be transferred to the unsecured roll for collection.
Section 9. If a property owner subject to these rates and charges questions the
classification of the owner's property for Fiscal Year 2003-2004, or claims that an error has been
made with respect to the implementation of the rates and charges or the application of the rates and
charges to the owner's property for that fiscal year, such property owner must appeal the levy by
filing an appeal with the Secretary ofthe TCSD before 5:00 p.m. on December 1,2003, pursuant to
procedures established by the TCSD, in order to be considered under the appeal of classification or
correction of errors program.
Section 10. If a property owner subject to these rates and charges believes that
payment of the rates and charges for Fiscal Year 2003-2004 would create a hardship for that
property owner during that fiscal year, such property owner must appeal the levy by filing a hardship
appeal with the TCSD Secretary before 5:00 p.m. on December 1, 2003, pursuant to procedures
established by the TCSD, in order to be considered under the hardship appeal program.
Section 11. The TCSD Secretary is hereby ordered to transmit or cause to be
transmitted to the County Auditor of the County of Riverside, California before August 11,2003, the
Report and the property tax roll with such rates and charges enumerated for each parcel not exempt
there from; and the County Auditor is hereby designated, required, empowered, authorized,
instructed, directed and ordered to make collection of all such rates and charges as shown on that
roll and to perform any and all duties necessary therefore.
Section 12. Pursuant to the California Environmental Quality Act, the levy and
collection ofthese rates and charges is exemptfrom CEQA pursuant to California Public Resources
Code Section 21080(b)(8) and Section 15273 of the State Guidelines because the rates and
charges are necessary to maintain existing improvements within the TCSD.
Section 13. The District Secretary shall certify to the adoption of this Resolution.
R:/CSO Resos 2003lCSD 03-13
2
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Temecula
Community Services District this 24th day of June, 2003.
Jeff Comerchero, President
ATTEST:
Susan W. Jones, CMC
City Clerk/District Secretary
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I HEREBY CERTIFY that the foregoing Resolution No. CSD 03-13 was duly adopted by the
Board of Directors of the T emecula Community Services District at the regular meeting thereof, held
on the 24th day of June, 2003, by the following vote of the Board of Directors.
AYES:
4
DIRECTORS: Naggar, Pratt, Stone, Comerchero
NOES:
o
DIRECTORS: None
ABSENT:
1
DIRECTORS: Roberts
ABSTAIN:
o
DIRECTORS: None
Susan W. Jones, CMC
City Clerk/District Secretary
R:/CSD Resas 2003/CSD 03-13
3
EXHIBIT A
PROJECT SUMMARY
TEMECULA COMMUNITY SERVICES DISTRICT
SERVICE LEVELS B. C. AND D
On January 1, 2002, MuniFinancial, Inc. was retained by the City ofTemecula to prepare the
Annual Levy Report for the Temecula Community Services District (TCSD) for the Fiscal Year 2003-
2004. Pursuant to the Community Services District Law, Division 3 of Title 6 of the Government
Code of the State of California, commencing with Section 61000 et sea.. the TCSD has the power to
levy and collect rates and charges in order to carry on its operations and to provide the services and
facilities furnished by it.
The levy and collection of the rates and charges is accomplished by the identification and
description of each parcel within a specific service level. A Service Level is a defined area that
provides a speCific service, operation and maintenance and/or program to only those parcels
contained within that service level, as follows:
1. Service Level B - Residential Street Liahts. Operations, maintenance, utility costs
and administration of all residential street lights.
2. Service Level C - Perimeter Landscaoina. Operations, maintenance, utility costs,
improvements, and administration for all perimeter landscaping and slope
maintenance areas maintained by the TCSD.
3. Service Level D - Refuse and Recvclina Services. Operations and administration of
the refuse and recycling program, and street sweeping services for all single-family
residential homes.
The Financial Analysis contained herein includes Service Levels B, C, and D with their total levy
budgets for Fiscal Year 2003-2004 to be as follows:
SERVICE LEVEULEVY BUDGET RATE LEVEL
Service Level B $ 459,621 N/A
Service Level C $ 988,935 C-1
C-2
C-3
C-4
C-5
C-6
C-7
C-8
Service Level D $3,304,486
PARCEL CHARGE
$ 25.68
$ 46.00
$ 89.00
$116.00
$175.00
$ 70.00
$225.00
$129.00
$ 20.00'
$172.54
'For Fiscal Year 2003-2004 the assessment will be $10.00. Landscaping will only be in
place for approximately six (6) months.
TOTAL TCSD LEVY
FOR SERVICE LEVELS
B, C, AND D:
$ 4.753.042
R:/CSD Resos 2003/CSD 03-13
4
EXHIBIT A
PROJECT SUMMARY
TEMECULA COMMUNITY SERVICES DISTRICT
SERVICE LEVELS B. C. AND D
On January 1,2002, MuniFinancial, Inc. was retained by the City ofTemecula to prepare the
Annual Levy Report for the Temecula Community Services District (TCSD) for the Fiscal Year 2003-
2004. Pursuant to the Community Services District Law, Division 3 of Title 6 of the Government
Code of the State of California, commencing with Section 61000 et sea.. the TCSD has the power to
levy and collect rates and charges in order to carry on its operations and to provide the services and
facilities furnished by it.
The levy and collection of the rates and charges is accomplished by the identification and
description of each parcel within a specific service level. A Service Level is a defined area that
provides a specific service, operation and maintenance and/or program to only those parcels
contained within that service level, as follows:
1. Service Level B - Residential Street Liahts. Operations, maintenance, utility costs
and administration of all residential street lights.
2. Service Level C - Perimeter Landscaoina. Operations, maintenance, utility costs,
improvements, and administration for all perimeter landscaping and slope
maintenance areas maintained by the TCSD.
3. Service Level D Refuse and Recvclina Services. Operations and administration of
the refuse and recycling program, and street sweeping services for all single-family
residential homes.
The Financial Analysis contained herein includes Service Levels B, C, and D with their total levy
budgets for Fiscal Year 2003-2004 to be as follows:
SERVICE LEVEULEVY BUDGET RATE LEVEL
Service Level B $ 459,621 N/A
Service Level C $ 988,935 C-1
C-2
C-3
C-4
C-5
C-6
C-7
C-8
Service Level D $3,376,115
PARCEL CHARGE
$ 25.68
$ 46.00
$ 89.00
$116.00
$175.00
$ 70.00
$225.00
$129.00
$ 20.00'
$176.28
'For Fiscal Year 2003-2004 the assessment will be $10.00. Landscaping will only be in
place for approximately six (6) months.
TOTAL TCSD LEVY
FOR SERVICE LEVELS
B, C, AND D:
$ 4.824.671
R:\smithb\Assessments\03-04 Assessment\Reso B, C, 0 & R.doc
06/24/03
RESOLUTION NO. CSD 03-14
A RESOLUTION OF THE BOARD OF DIRECTORS OF TEMECULA
COMMUNITY SERVICES DISTRICT ADOPTING RATES AND
CHARGES FOR SERVICE LEVEL R- ROAD MAINTENANCE
SERVICES FOR FISCAL YEAR 2003-2004
THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICE DISTRICT
HEREBY FINDS, RESOLVES, DECLARES, DETERMINES AND ORDERS AS FOLLOWS:
Section 1. Upon incorporation of the City of Temecula, effective December 1, 1989,
voters approved the formation of the Temecula Community Services District ("TCSD"), to provide
specified services to properties within its jurisdiction.
Section 2. Pursuantto Government Code Sections 61621 and 61621.2, the TCSD
has prescribed, revised and collected rates and charges for the services furnished by it, and has
elected to have these rates and charges collected on the tax roll in the same manner, by the same
persons, and at the same time as, together with and not separately from, property taxes within the
TCSD in the manner prescribed by Government Code Sections 61765.2 to 61765.6, inclusive. By
previous resolution, the TCSD proposed to continue such rates and charges for the maintenance of
streets and roads for Fiscal Year 2003-2004.
Section 3. Pursuant to Government Code Section 61621.2, the TCSD caused a
written report ("Report") to be prepared and filed with the Secretary of the TCSD, which Report
contains a description of each parcel of real property and the proposed amount of the rates and
charges for Fiscal Year 2003-2004. The Report is based upon a budget adopted by the Board of
Directors for the proposed services for specific areas where such services are provided, including
necessary staff and administrative expenses. A summary or the Report containing the proposed
rates and charges is attached hereto as Exhibit A, entitled "Project Summary", and incorporated
herein by this reference. A copy of the Report is on file in the office of the Secretary of the TCSD,
and is available for public inspection.
Section 4. By previous resolution, the Board of Directors acknowledged the filing of
the Report, and appointed a time and place for a public hearing on the Report and the proposed
rates and charges. Notice of the public hearing was mailed and published as required by law and
affidavits of publication and mailing are on file with the Secretary of the TCSD.
Section 5. On June 24, 2003, the Board of Directors conducted a public hearing on
the Report and the proposed rates and charges. At the public hearing, the Board of Directors heard
and considered all oral and written objections, protests and comments by any interested person
concerning the Report, the proposed rates and charges, and the method of collection of such rates
and charges.
Section 6. The Board of Directors hereby finds that, based on the Report and the
District budget, the rates and charges as set out on Exhibit "A" does not exceed the reasonable cost
of the services to be provided by the TCSD for Fiscal Year 2003-2004.
Section 7. The Board of Directors hereby overrules any and all objections and
protests and adopts the rates and charges for the road maintenance services for Fiscal Year 2003-
R:/CSD Resos 2003/CSD 03-14
2004 as set out on Exhibit "A" for the services to be provided by the TCSD for Fiscal Year 2003-
2004.
Section 8. The TCSD shall collect such rates and charges at the same time and in
the same manner and by the same persons as, together with and not separately from, the property
taxes collected within the TCSD. These rates and charges shall be delinquent at the same time and
thereafter be subject to the same delinquency penalties as such property taxes. All laws applicable
to the levy, collection, and enforcement of property taxes, including, but not limited to, those
pertaining to the matters of delinquency, correction, cancellation, refund and redemption, are
applicable to these rates and charges, except for California Revenue and Taxation Code Section
4831. However, if for the first year the charge is levied, the real property to which the charge relates
has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide
encumbrancer for value has been created and attaches thereon, prior to the date on which the first
installment of such taxes appear on the roll, then the charge shall not result in a lien against the
property, but instead shall be transferred to the unsecured roll for collection.
Section 9. If a property owner subject to these rates and charges questions the
classification of the owner's property for Fiscal Year 2003-2004, or claims that an error has been
made with respect to the implementation of the rates and charges or the application of the rates and
charges to the owner's property for that fiscal year, such property owner must appeal the levy by
filing an appeal with the Secretary of the TCSD before 5:00 p.m. on December 1, 2003, pursuant to
procedures established by the TCSD, in order to be considered under the appeal of classification or
correction of errors program.
Section 10. If a property owner subject to these rates and charges believes that
payment of the rates and charges for Fiscal Year 2003-2004 would create a hardship for that
property owner during that fiscal year, such property owner must appeal the levy by filing a hardship
appeal with the TCSD Secretary before 5:00 p.m. on December 1, 2003, pursuant to procedures
established by the TCSD, in order to be considered under the hardship appeal program.
Section 11. The TCSD Secretary is hereby ordered to transmit or cause to be
transmitted to the County Auditor ofthe County of Riverside, California before August 11, 2003, the
Report and the property tax roll with such rates and charges enumerated for each parcel not exempt
there from; and the County Auditor is hereby designated, required, empowered, authorized,
instructed, directed and ordered to make collection of all such rates and charges as shown on that
roll and to perform any and all duties necessary therefore.
Section 12. Pursuant to the California Environmental Quality Act, the levy and
collection of these rates and charges is exempt from CEQA pursuant to Califomia Public Resources
Code Section 21080(b)(8) and Section 15273 of the State Guidelines because the rates and
charges are necessary to maintain existing improvements within the TCSD.
Section 13. The District Secretary shall certify to the adoption of this Resolution.
R:/CSO Resos 2003/CSD 03-14
2
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Temecula
Community Services District this 24th day of June, 2003.
Jeff Comerchero, President
ATTEST:
Susan W. Jones, CMC
City Clerk/District Secretary
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I HEREBY CERTIFY that the foregoing Resolution No. CSD 03-14 was duly adopted by the
Board of Directors of the Temecula Community Services District at the regular meeting thereof, held
on the 24th day of June 2003, by the following vote of the Board of Directors.
AYES:
NOES:
4
o
DIRECTORS: Naggar, Pratt, Stone, Comerchero
DIRECTORS: None
ABSENT:
1
DIRECTORS: Roberts
ABSTAIN:
o
DIRECTORS: None
Susan W. Jones, CMC
City Clerk/District Secretary
R:/CSO Reses 2003/CSO 03-14
3
EXHIBIT A
PROJECT SUMMARY
TEMECULA COMMUNITY SERVICES DISTRICT
SERVICE LEVEL R
On January 1, 2002, MuniFinancial, Inc. was retained by the City of Temecula to prepare
the Annual Levy Report for the Temecula Community Services District (TCSD) for the Fiscal
Year 2003-2004. Pursuant to the Community Services District Law, Division 3 of Title 6 of the
Government Code of the State of California, commencing with Section 61000 et sea.. the TCSD
has the power to levy and collect rates and charges in order to carry on its operations and to
provide the services and facilities furnished by it.
The levy and collection of the rates and charges is accomplished by the identification and
description of each parcel within a specific service level. A Service Level is a defined area that
provides a specific service, operation and maintenance and/or program to only those parcels
contained within that service level, as follows:
Service Level R Road Maintenance Services. Construction, installation, and
maintenance of streets and roads throughout the City.
The Financial Analysis contained herein includes the Service Level R total levy budget for Fiscal
Year 2003-2004 to be as follows:
SERVICE LEVEULEVY BUDGET
RATE LEVEL PARCEL CHARGE
Service Level R
$12,755
R-1 Improved
R-1 Unimproved
R-2 Improved
R-2 Unimproved
$115.26
$ 57.64
$121.92
$ 60.96
TOTAL TCSD LEVY
FOR SERVICE LEVEL R:
$12,755
R:/CSO Reses 2003/CSO 03-14
4
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CITY OF TEMECULA
ENGINEER'S ANNUAL LEVY REPORT
Temecula Community Services District
(TCSD)
Fiscal Year 2003/2004
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INTENT MEETING:
PUBLIC HEARING:
April 22, 2003
June 24, 2003
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. MuniFinancial
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Corporate Office
27368 Via Industria
Suite 110
Temecula, CA 92590
Tel: (909) 587-3500
Tel: (800) 755-MUNI (6864)
Fax: (909) 587-3510
Regional Offices
Antelope Valley, CA
Jacksonville,FL
Los Angeles, CA
Oakland, CA
Orange, CA
Phoenix, AZ.
San Diego, CA
Sacramento, CA
Seattle, W A
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ENGINEER'S REPORT AFFIDAVIT
Establishment of Annual Rates and Charges for the:
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Temecula Community Services District (TCSD)
City of Temecula
Riverside County, State of California
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This Report and the information contained herein reflect the proposed budget for each
of the various services provided by the District and the rates and charges applicable to
those services as they existed at the time of the passage of the Resolution of Intention.
Reference is hereby made to the Riverside County Assessor's maps for a detailed
description of the lines and dimensions of parcels within the District. The undersigned
respectfully submits the enclosed Report as directed by the Board of Directors of the
Temecula Community Services District.
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Dated this
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( ---- day of
fl?1UL-
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MuniFinancial
District Engineer
On Behalf of the City of Temecula and
The Temecula Community Services District
By:
Scott D' polito
Proje Manager, District Administration Services
'II
By:
Richard Kopecky
R. C. E. # 16742
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TABLE OF CONTENTS
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I. INTRODUCTION ...........................................................................................1
II. PLANS AND SPECIFICATIONS........................................................3
A. GENERAL DESCRIPTION OF THE DISTRICT AND SERVICES..........................................3
B. BUDGET AND LEVY SUMMARY .................................................................................3
C. DISTRICT SERVICES AND CHARGES .........................................................................5
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III. CHANGES TO THE DISTRICT...........................................................9
A. NOTABLE MODIFICATIONS TO THE DISTRICT .............................................................9
B. PROPOSED MODIFICATIONS OF THE DISTRICT FOR FISCAL YEAR 2003/2004.. .......... 10
IV. DISTRICT BUDGETS ............................................................................ 12
V. METHOD OF APPORTIONMENT ...................................................14
APPENDIX A - 2003/2004 COLLECTION ROLL............................16
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
I.
INTRODUCTION
Upon incorporation of the City of Temecula ("City"), effective December 1, 1989,
voters approved the formation of the Temecula Community Services District
("Districf') to provide specified services to properties within its jurisdiction
previously provided by the County of Riverside ("County"). The boundary of the
District is coterminous with the City boundary and includes all parcels within the
City with the City Council acting as the Board of Directors ("Board") for the
District. The District collects property-related fees and charges ("Charges") in
order to provide services and maintain the improvements within the District. The
District was formed, and Charges are set and established, pursuant to the
Community Services District Law, Title 6, Division 3 of the California Government
Code ("CSD Law").
Each fiscal year, an Annual Levy Report is prepared, filed and approved by the
Board. This Annual Levy Report describes the District, any changes to the
District and the proposed Charges for the fiscal year. The Charges contained in
the Annual Levy Report are based on the historical and estimated cost to service
properties within the District. The services provided by the District and the
corresponding costs are budgeted and charged as separate Service Levels and
include all expenditures, deficits, surpluses, and revenues. Each parcel is
charged for the services provided to the parcel.
The District provides residential street lighting, perimeter landscaping and slope
protection, and refuse collection in numerous residential developments as well
as road improvement and maintenance within specified areas of the District.
Pursuant to Government Code Sections 61621 and 61621.2, the District has
prescribed, revised and collected rates and charges for residential street lighting
(Service Level B), perimeter landscaping (Service Level C), trash/recycling
(Service Level D), and road maintenance (Service Level R) services furnished by
the District, and has elected to have these rates and charges collected on the tax
roll in the same manner, by the same persons, and at the same time as, together
with and not separately from, its general taxes in the manner prescribed by
Government Code Sections 61765.2 to 61765.6, inclusive.
Pursuant to Government Code Section 61621.2, this Engineer's Annual Levy
Report ("Report") is prepared and presented to the Board to prescribe Service
Level B, Service Level C, Service Level D and Service Level R Rates and
Charges for the parcels and territories within the District.
MunlFinancial
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
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The word "parcel," for the purposes of this Report, refers to an individual property
assigned its own Assessment Number or Assessor's Parcel Number by the
Riverside County Assessor's Office. The Riverside County Auditor/Controller
uses Assessment Numbers and specific Fund Numbers, to identify on the tax
roll, properties charged for District services.
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A Public Hearing is held each year before the Board to allow the public an
opportunity to hear and be heard regarding the District. Following consideration
of all public comments and written protests at the noticed Public Hearing, and
review of the Engineer's Annual Levy Report, the Board may order amendments
to the Report or confirm the Report as submitted. Following final approval of the
Report, and confirmation of the Charges, the Board shall order the levy and
collection of Charges for Fiscal Year 2003/2004. In such case, the levy
information will be submitted to the Riverside County Auditor/Controller, and
included as Charges on the property tax roll for the various services provided in
Fiscal Year 2003/2004.
MunlFlnancial
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
II.
PLANS AND SPECIFICATIONS
A. General Description of the District and Services
The boundary of the District is coterminous with the City boundary, and
includes all parcels within the City of Temecula. The District provides certain
property related services and improvements consisting of four (4) separate
and distinct services referred to as Service Levels. Each parcel within the
District is charged proportionately for only those services attributable to the
parcel. Each Service Level has differing costs depending upon the services
provided. All parcels identified within a Service Level share in the cost of the
service. The costs associated with the service are proportionately spread
among all properties within that Service Level to which the service is
provided. Services and improvements provided through the District include
residential street lighting; perimeter landscape maintenance and slope
protection; a refuse and recycling collection program; and road improvement
construction and maintenance. The Service Levels are identified as follows:
. Residential Street Lighting
. Perimeter Landscaping
. Trash/Recycling
. Road Maintenance
B. Budget and Levy Summary
The budgets for each Service Level are shown in detail in Section IV of this
report. Each Service Level provides different and specific services and
improvements to various parcels within the District. Only the parcels that the
services and improvements are levied for are included at each of the Service
Levels. The "Total Levy Units" and the resulting "Charge Per Levy Unif'
(shown in Table I), reflect a method of apportionment that most fairly
proportions the costs of the services to the parcels in that Service Level. The
"Total Levy Units" for Service Levels B, C, and D is based on a per parcel
count. For Service Level R, levy units are based on a Parcel Development
Unit (PDU), which is similar to a per parcel count, but makes a distinction
between developed and undeveloped parcels. For a more complete
description of the methods used for calculating the "Total Levy Units. used for
each Service Level, please refer to (Section V), Method of Apportionment.
MunlFinancial
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! . Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 200312004
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\ C. District Services and Charges
\ Service Level B, Residential Street Lighting - includes all developed
single family residential parcels and residential vacant lots for which the
District provides on-going servicing, operation, and maintenance of local
I' street lighting improvements. The current rate and charges for Service Level
B is $25.68 per residential lot and shall be applied to developed and
undeveloped residential parcels within the following Tracts and subdivisions
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Service Level B Tracts
I: 04153-00 19872-04 20879-01 21675-01 22916-03 23174-03 24133-03 25892-00
04188-00 . 19872-05 20882-00 21675-02 22962-00 23174-04 24133-04 26488-00
1: 04457-00 19939-00 20882-01 21675-03 23100-01 23174-05 24133-05 27827-00
06559-00 19939-01 20882-02 21675-04 23100-02 23174-06 24134-00 27827-01
07401-00 19939-02 20882-03 21675-05 23100-03 23177-00 24134-01 27827-02
I 07402-00 20079-00 20987-00 21675-06 23100-04 23209-00 24134-02 27827-03
I. 08369-00 20079-01 21067-00 21760-00 23100-05 23220-00 24134-03 28309-00
08369-01 20079-02 21082-00 21765-00 23100-06 23267-00 24135-00 28480-00
[ 08369-02 20079-03 21082-01 22148-00 23100-07 23267-01 24135-01 28482-00
11087-01 20130-00 21082-02 22203-00 23100-08 23267-02 24135-02 28482-01
11087-02 20130-01 21082-03 22204-00 23101-01 23267-03 24135-03 28482-02
!. 12189-01 20130-02 21082-04 22208-00 23101-02 23267-04 24136-00 28482-<l3
12189-02 20130-03 21340-00 22593-00 23101-03 23371-00 24136-01 28503-00
12189-03 20130-04 21340-01 22593-01 23101-04 23371-01 24136-02 28510-00
[ : 12189-04 20130-05 21340-02 22593-02 23101-05 23371-02 24136-03 28510-01
12189-05 20130-06 21340-03 22627-00 23101-06 23371-03 24182-01 28510-02
12189-06 20153-00 21340-04 22627-01 23125-00 23371-04 24182-02 28510-03
I: 12189-07 20154-00 21340-05 22715-00 23125-01 23371-05 24182-03 28526-00
13060-01 20319-00 21340-06 22715-01 23125-02 23371-06 24182-04 28553-00
13060-02 20643-00 21340-07 22715-02 23125-03 23371-07 24183-00 28553-01
! : 13060-03 20644-00 21430-01 22716-00 23126-00 23371-08 24183-01 28810-00
13060-04 20703-01 21561-00 22716-01 23128-00 23371-09 24184-00 29033-00
13060-05 20703-02 21672-01 22716-02 23142-00 23371-10 24184-01 29036-00
L 13060-06 20703-03 21672-02 22716-03 23143-02 23371-11 24185-01 29286-00
13060-07 20735-01 21672-03 22716-04 23143-03 23371-14 24185-02 PM 26488
13060-08 20735-02 21672-04 22761-00 23143-04 23483-00 24186-00 PM 27493
L 18518-00 20735-03 21673-00 22762-00 23143-07 24131-00 24186-01 PM 28122
18518-01 20735-04 21673-01 22786-00 23143-09 24131-01 24186-02 Old Town
18518-02 20735-05 21673-02 22915-00 23173-00 24131-02 24186-03
!: 18518-03 20735-06 21673-03 22915-01 23173-01 24131-03 24187-00
18583-00 20735-07 21674-00 22915-02 23173-02 24132-00 24187-01
19872-00 20735-08 21674-01 22915-03 23173-03 24132-01 24187-02
, , 19872-01 20735-09 21674-02 22916-00 23173-04 24133-00 241.88-01
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l 19872-02 20848-00 21674-03 22916-01 23174-01 24133-01 24232-00
19872-03 20879-00 21675-00 22916-02 23174-02 24133-02 25004-01
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 200312004
Service Level C, Perimeter Landscaping - includes all developed single
family residential parcels and residential vacant lots for which the District
provides on-going servicing, operation, and maintenance of perimeter
landscaped areas and slopes within the public right-of-ways and dedicated
easements adjacent to and associated with certain tracts and subdivisions. The
level of maintenance required within these tracts and subdivisions vary
depending on operating costs. Eight (8) subzones and their corresponding rates
have been established within Service Level C. For Fiscal Year 2003/2004, the
District proposes to establish subzone C-8 for the development known as the
Loma Linda tract. The results of the property owner election for this new subzone
is scheduled to be ratified on June 24, 2003. The rate and charges for each of
the subzones in Service Level C are as follows:
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. The approved rate for C-1 is $ 46.00 and is currently charged $46.00.
. The approved rate for C-2 is $ 89.00 and is currently charged $89.00.
. The approved rate for C-3 is $116.00 and is currently charged $116.00.
. The approved rate for C-4 is $175.00 and is currently charged $175.00.
. The approved rate for C-5 is $ 70.00 and is currently charged $70.00.
. The approved rate for C-6 is $225.00 and is currently charged $225.00.
. The approved rate for C-7 is $129.00 and is currently charged $129.00.
. The noticed rate for C-8 is $20.00, but will be charged $10.00 for fiscal
year 2003/04.
The current rate and charges for Service Level C is per residential lot and
shall be applied to developed and undeveloped residential parcels within the
following Tracts and subdivisions for Fiscal Year 2003/2004.
Service Level C Tracts
Rate Level C-1
Tract Name
PRESLEY DEVELOPMENT
Tract Number.
23267-00 23267'()1 23267'()2 23267-<l3 2326Hl4 2686HlO 26861.01
26861'()2 26861-<l3
22593-00 22593.()1 22593.()2
20879-00 20879.()1
28309-00
RANCHO SOLANA
THE VINEYARDS
MONTE VISTA
MunlFinancial
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
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Rate Level Co7
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Tract Nama
VAIL RANCH
Tract Number.
23173-00 23173'()1 23173-02 23173.03 23173-04 23174-01 23174-02
23174'()3 23174'()4 23174'()5 23174'()6 26480'()() 28832'()()
Rate Level COS
Tract Nama Tract Numbera
Lorna Unda Tract 19972'()() 19872.()1 1972'()2
19872'()3 19872.()4 19872'()5
Service Level D, Trash/RecycUng Collection - provides for the operation
and administration of the refuse collection program including recycling and
street sweeping services for all developed single family residential homes
within the District The rate and charges for fiscal year 2003/04 for Service
Level 0 is $176.28 per single family residential home (developed residential
parcel) and will be applied to all parcels that have been identified as
developed residential homes.
Service Level R, Road Maintenance - provides funding for construction,
improvement, service and maintenance of public streets and roads
throughout the District The services provided may include, but are not limited
to: renovation or restoration due to damage; flood and drainage control;
repairs and re-grading; and upgrades of the existing areas as required for
unpaved roads. All parcels identified within Service Level R, share in the cost
of the services provided. The costs associated with the services are
proportionately spread among all parcels within various areas (rate levels) of
the Service Level R. Service Level R currently has two (2) rate levels. The
level of maintenance required within these two (2) areas vary due to
operating costs, and therefore separate rate levels have been established.
Only the parcels within each of the two (2) boundary areas will be charged for
the costs associated with servicing and maintaining the roads and streets in
the area.
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
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. Rate Level R-1 -The parcels within this rate level consists of seventy-
five (75) assessable parcels that have direct access to roads or streets
that are serviced and maintained through the District. This rate level
provides funding for servicing and maintenance of: Nicolas Road;
Greenwood Lane; Liefer Road; Gatlin Road; Pala Vista. A total of 1.068
miles of roads are serviced and maintained in this area.
. Rate Level R-2 -The parcels within this rate level consists of sixty-six
(66) assessable parcels that have direct access to roads or streets that
are serviced and maintained through the District. This rate level provides
funding for servicing and maintenance of: Ormsby Road; Santiago Road;
Lolita Road; and John Warner Road. A total of 1.003 miles of roads are
serviced and maintained in this area.
III.
CHANGES TO THE DISTRICT
Changes or modifications to the District structure, if any, could include, but are
not limited to: changes or expansion in the existing improvements or in the types
of services provided; addition of new services or Service Levels; restructuring of
the current Service Levels; inclusion of parcels into the District or Service Levels;
or revisions in the method of apportionment. Changes or modifications within the
District that may affect the levy are outlined in the following.
A. Notable Modifications to the DistrIct
On March 4, 1997, the voters of Temecula approved a Special Tax to fund
citywide community services. This Special Tax replaced two existing Service
Levels, previously charged through the Community Services District.
. Community Services, Parks, and Recreation - that provided for the
maintenance, service and operation of all public parks and recreation
services within the City.
. Service Level A, Arterial Street Lighting and Medians - that provided
servicing, operation, and maintenance of traffic signals, street lighting and
landscaped medians along arterial streets.
Beginning in Fiscal Year 1997/1998 these two Service Levels were replaced
by the Special Tax and are no longer charged through the District.
MunlFinancial
Page 9
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
B. Proposed Modifications of the District for Fiscal Year 2003/2004
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The most notable modification to the District for Fiscal Year 2003/2004 is
related to the addition of improvements and expansion of existing services as
a result of new development. When a new residential tract is developed, the
District accepts additional improvements for maintenance and servicing,
Along with acceptance of the improvements, the parcels within those tracts
are included in the appropriate Service Levels. The improvements and
services for Service Levels Band C are typically tract or development specific
and therefore, all parcels within a tract or development are included in these
two Service Levels when the District accepts the improvements. Additionally,
individual residential parcels are included in Service Level D when a new
single family residential unit is identified and service is ordered.
Service Level B
Inclusions to Service Level B (Residential Street Lighting) include 630
residential units. The following tracts are the new developments for Fiscal
Year 2003/2004:
Tract Number
23143-07
23143-09
23209-00
24136-02
24187-00
25892-00
Total
Total Number of Units
85
127
220
74
92
32
630
The number of units for each of the tracts referenced for inclusion in Service
Level B represents the total number of residential parcels and lots within that
tract. Although these tracts have been fully subdivided or a tract map has
been approved, in some cases, the actual Assessor's Parcel Numbers
(APN's) for each of the individual residential parcels may not have been
established by the County Assessor's Office. In such cases, the APN's
currently recognized by the County are assigned and charged for the number
of residential lots associated with each parcel within the tract. The new APN's
for each of the individual residential parcels and lots are expected to be
established by the time the levy is submitted to the County, but if not, the
existing APN's will be charged based on the number of residential lots
associated with each APN.
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
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Service Level C
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The results of the property owner election will be ratified on June 24, 2003 to
annex an area in Pechanga Parkway known as the Loma Linda Tract to be
included in Service Level C (Perimeter Landscaping and Slopes) for Fiscal
Year 2003/2004. There are a total of 420 assessable parcels in this area
which will be known as subzone C-8. The taxable parcels are proposed to be
assessed at $10.00 per EBU for fiscal year 2003/04. The maximum special
tax is $20,00 per EBU.
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Service Level D
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In Fiscal Year 2001/02 Service Level D was segregated into D-1 and D-2 to
identify separately the parcels within the Vail Ranch Area (D-2) because
there was the possibility of a different service provider. This situation no
longer exists and Service Level D has been updated to reflect a single rate
level.
A total of 678 newly developed residential parcels have been identified and
added to Service Level D (Trash/Recycling) for Fiscal Year 2003/2004. New
single family residential units are identified each year and included in Service
Level D based on updated County Assessor's data, City building permits and
the waste hauler's updated service records.
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The actual cost per household last year for this service was $172.56. For
Fiscal Year 2003/2004, the proposed rate and charge is increased at $176.28
for actual service costs, as provided in the City's franchise agreement with
the contracted waste hauler (CR&R).
Service Level R
There are no new inclusions to Service Level R (Road Maintenance),
proposed for the current fiscal year.
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
v. METHOD OF APPORTIONMENT
As in past years, the cost to provide services within the District will be fairly
distributed among each eligible property.
Service Level B (Residential Street Lighting); Service Level C (Perimeter Landscaping
and Slopes); and Service Level D (Trash/Recycling):
The following is the formula used to calculate each property's District charges by
the per parcel (residential lot) method.
Total Balance to Levy (Budgeted) / Total Residential Lots (In Service Level) = Parcel Charge
Service Level R (Roads):
The Charge Per Levy Unit for Service Level R is based on a Parcel Development
Unit (PDU), which is similar to a per parcel charge, but makes a distinction
between developed and undeveloped parcels.
Parcel Development Units = 1.0 for Developed Parcels
Parcel Development Units = 0.5 for Undeveloped Parcels
Total Balance to Levy / Total Parcel PDU (In rate Level) = Parcel Charge
The following tables reflect the levy calculations for each Service Level.
PARCEL CHARGE CALCULATIONS FOR
SERVICE LEVEL B
Parcel/Unit X
1.00
1.00
Charge per
Parcel
$25.68
$25,68
Parcel
= Char e
$25.68
$25.68
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
PARCEL CHARGE CALCULATIONS FOR
SERVICE LEVEL C
Charge per Parcel
PrODertv TVDe and Zone Parcel/Unit X Parcel = Charae MultlDller
Residential Lot C-1 1.00 $46.00 $46.00 Per Parcel
Residential Lot C-2 1.00 $89.00 $89.00 Per Parcel
Residential Lot C-3 1.00 $116.00 $116.00 Per Parcel
Residential Lot C-4 1.00 $175.00 $175.00 Per Parcel
Residential Lot C-5 1.00 $70,00 $70.00 Per Parcel
Residential Lot C-6 1.00 $225.00 $225.00 Per Parcel
Residential Lot C-? 1.00 $129.00 $129.00 Per Parcel
Residential Lot C-8 1,00 $10.00 $10.00 Per Parcel
PARCEL CHARGE CALCULATIONS FOR
SERVICE LEVEL D
Charge per
. ParcellUnlt X Parcel =
Sin Ie Famil Residential Lot 1.00 176.28 176.28
. Developed residential parcelldenUfied by CR&R for which refuse collections are available,
PARCEL CHARGE CALCULATIONS FOR
SERVICE LEVEL R
Charge Parcel
and Zone Parcel/Unit er Unit = Char e
1.00 $115.26 $115.26
0.50 115.26 57.64
1.00 $121.92 $121.92
0.50 $121.92 $60.96
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Temecula Community Services District
Engineer's Annual Levy Report
Fiscal Year 2003/2004
Appendix A - 2003/2004 COLLECTION ROLL
Parcel identification, for each lot or parcel within the District, shall be the parcel as
shown on the County Assessor's map for the year in which this report is prepared,
A listing of parcels within this District, along with the charges, has been submitted to
the City Clerk and, by reference, is made part of this report.
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TCSD
DEPARTMENTAL
REPORT
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANCE
CITY MANAGER Y
CITY OF TEMECULA
AGENDA REPORT
TO:
Board of Directors
FROM:
Herman D, Parker, Director of Community Services
DATE:
June 24, 2003
SUBJECT:
Departmental Report
PREPARED BY:
Gail L Zigler, Administrative Secretary
RHA Landscape Architects is preparing the construction documents for the improvements to Vail
Ranch Park Site "C" adjacent to Pauba Elementary School. This project is identified in this year's
CIP, The new amenities will include a tot lot, picnic shelter, tables, benches and walkways. The
Community Services Commission reviewed and approved the conceptual master plan at their
February 11, 2002 Commission meeting. This project is currently in for second plan check.
The conceptual Master Plan for the Wolf Creek Sports Complex, a 43 acre park with parking,
restroom/concession buildings, maintenance building, four lighted basketball courts, four lighted
soccer and four lighted softball/baseball fields, tot play equipment, picnic areas and walkways, was
reviewed and approved by the Board of Directors at the January 14, 2003 meeting. The architect is
currently drafting the construction documents,
The week of June 9, 2003, the City received information that the Library Grant Application was
deemed eligible for second round funding. Board staff will now begin the in-depth evaluation of all
eligible applications, It is anticipated that the Board hearing to award second cycle grants will be
held sometime in October 2003.
The Development Services Division continues to participate in the development review for projects
within the City including Wolf Creek, Roripaugh, Villages of Old Town and Harveston, as well as
overseeing the development of parks and recreation facilities, and the contract for refuse and
recycling, cable television services and assessment administration,
The Maintenance Division continues to oversee the maintenance of all City parks and facilities, and
assist in all aspects of Citywide special events.
The Recreation Division staff is currently planning its summer special events the Annual 4th of July
Parade and Fireworks Extravaganza, the Summer Concert series, the new Movies in the Park
series, and the summer S.MAR.T., day camp and aquatics programs,
RIlJGLERG\XOEPfRPT'il6OJ,doI;
June 18,2003
REDEVELOPMENT
AGENCY
ITEM 1
MINUTES OF A REGULAR MEETING
OF THE TEMECULA REDEVELOPMENT AGENCY
JUNE 10, 2003
A regular meeting of the City of Temecula Redevelopment Agency was called to order at 7:29
P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula.
ROLL CALL
PRESENT:
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AGENCY MEMBERS:
Comerchero, Naggar, Pratt, Stone,
and Roberts
ABSENT:
o
AGENCY MEMBER:
None
Also present were Executive Director Nelson, Assistant City Attorney Curley, and City Clerk
Jones,
PUBLIC COMMENTS
No input.
CONSENT CALENDAR
1 Minutes
RECOMMENDATION:
1.1 Approve the minutes of May 27, 2003.
MOTION: Agency Member Comerchero moved to approve Consent Calendar Item NO.1. The
motion was seconded by Agency Member Naggar and voice vote reflected unanimous approval.
AGENCY BUSINESS
2 Review and Adoption of the FY 2003-04 Annual Operatina Budaet
RECOMMENDATION:
2.1 Adopt a resolution entitled:
RESOLUTION NO. RDA 03-10
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA
ADOPTING THE FY 2003-04 ANNUAL OPERATING BUDGET
AND ESTABLISHING CONTROLS ON CHANGES IN
APPROPRIATIONS
Executive Director Nelson reviewed the staff report (of record).
In response to Agency Member Naggar, Finance Director Roberts noted that the refinancing of
the Redevelopment bonds could be explored.
R\Minutes.rda\061003
MOTION: Agency Member Stone moved to approve Item No, 2. The motion was seconded by
Agency Member Comerchero and voice vote reflected unanimous approval.
3 Review and Adoption of the FY 2004-08 Capital Improvement Budaet for the
Redevelopment Aaencv (RDA)
RECOMMENDATION:
3.1 Adopt a resolution entitled:
RESOLUTION NO. RDA 03-11
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA
APPROVING THE CAPITAL IMPROVEMENT PROGRAM FY
2004-08 AND ADOPTING THE CAPITAL IMPROVEMENT
BUDGET FOR FY 2003-04
MOTION: Agency Member Stone moved to approve Item NO.3, The motion was seconded by
Agency Member Comerchero and voice vote reflected unanimous approval.
EXECUTIVE DIRECTOR'S REPORT
No comment.
AGENCY MEMBERS' REPORTS
Chairman Roberts invited the public to the upcoming Street Painting Festival in Old Town on June
21 - 22,2003,
ADJOURNMENT
At 8:37 P,M., the Temecula Redevelopment Agency meeting was formally adjourned to
Tuesday, June 24, 2003, in the City Council Chambers, 43200 Business Park Drive, Temecula,
California.
Ron Roberts, Chairman
ATTEST:
Susan W. Jones, CMC
City Clerk/Agency Secretary
[SEAL]
R\Minutes.rda\061 003
2
ITEM 2
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APPROVAL
CITY ATTORNEY
FINANCE OFFICER
CITY MANAGER
TEMECULA REDEVELOPMENT AGENCY
AGENDA REPORT
DATE:
TO:
June 24, 2003
Executive Director and Agency Board
~
FROM: John Meyer, Redevelopment Director
SUBJECT: Corporation for Better Housing Senior Housing Project
RECOMMENDATION:
1, That the Redevelopment Agency Board adopt a resolution entitled:
RESOLUTION NO. RDA 0:YLl-'
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA
APPROVING FIRST AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND
28500 PUJOL STREET, A CALIFORNIA LIMITED
PARTNERSHIP
BACKGROUND: Agency Board approved the Disposition and Development Agreement (DDA)
with Corporation for Better Housing (CBH) January 14, 2003.
Corporation for Better Housing (CBH) is proposing to develop a 66 unit affordable senior housing
project on the east side of Pujol, south of 6th Street, behind the Habitat for Humanity homes, The
project will be two-story garden-style apartments and project amenities, which will include a
community room, and swimming pool, The project is proposed to be all one-bedroom units,
The Agency will contribute $2,615,000 to the project as a loan. CBH will then reimburse the Agency
$434,000 for the value of the property,
R:\Housing 2002lCBHDDAAmendmentStaffReport62403.doc
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DISCUSSION: The proposed amendments to the DDA are best described as housekeeping
items, which have relatively little impact on the Agency's participation in the project. The proposed
amendments will not result in any of the previously agreed to deal points nor affect the level of the
Agency's financial contribution to the project.
The first item is in response to the correct legal name of the partnership, which was incorrectly given
to the Agency previously. The correct name of the partnership is 28500 Pujol 5t. previously referred
to as 28500 Street.
The second adjustment is a request from the tax credit borrower to include language that allows the
borrower the right to clear any defaults. The third adjustment is a request from the limited partner to
be able to take control from the general partners without the Agency's approval. And the last
adjustment from the partnership is to establish the deal as a non-recourse transaction, which limits
the Agency to go after only the project and not the partnership in the case of default.
The Agency's Counsel has reviewed the last three requests and determined they are standard items
typical to these types of DDA's and do not compromise the Agency's interest in any way.
FISCAL IMPACT: As outlined in the body of the report, the proposed amendment will not result
in any additional cost to the Agency,
Attachment: Resolutions
First Amendment to the Disposition and Development Agreement
R:lHousing 2002\CBHDDMmendmentStaffReport62403.doc
"
~
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Supplemental Material
with regard to
Redevelopment Consent Calendar Item NO.2
RESOLUTION NO. RDA 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE REDEVELOPMENT AGENCY OF THE CITY
OF TEMECULA APPROVING FIRST AMENDMENT
TO THE DISPOSITION AND DEVELOPMENT
AGREEMENT BETWEEN THE AGENCY AND 28500
PUJOL STREET, A CALIFORNIA LIMITED
PARTNERSHIP
THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF
THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Board of Directors of the Redevelopment Agency of the City of
Temecula hereby finds, determines and declares that:
A, Agency and 28500 Pujol Street, a California Limited Partnership
("Developer") have entered into a Disposition and Development Agreement dated as of
January 14,2003 (the "DDA") which provided for, among other things, the Agency's
contribution to Developer of certain real property described therein (the "Property") and
the Agency's making a "predevelopment loan" to Developer to be secured by the Property
(the "Agency Loan") for the purpose of facilitating the development of an affordable 66-
unit senior housing project on the east side of Pujol. The project will be two-story
garden-style apartments and project amenities, which will include a community room and
swimming pool. Capitalized terms used herein but not defined shall have the meaning set
forth in the DDA.
B. The Agency Loan is secured by a Deed of Trust, Security
Agreement and Fixtures Filing (with Assignment of Rents) dated January 14, 2003
executed by Developer, as trustier, in favor of Agency, as beneficiary, and recorded on
in the Official Records of the County of Riverside, California as Document
No, 2002-201994 (the "Deed of Trust"),
C, Agency and Developer desire to clarify and modify some of the
terms of the DDA and the Agency Loan,
D, The approval of this First Amendment by the Agency constitutes
an action by the Agency to implement an adopted Housing Assistance Plan by acquiring
interests in housing units to assure they are affordable to persons of low and moderate
income, Therefore, the Project is exempt from the provisions of the California
Environmental Quality Act pursuant to Section 15326 of the CEQA Guidelines (Title 14
of the California Code of Regulations),
Section 2. The Board of Directors of the Redevelopment Agency of the City
of Temecula hereby approves that certain agreement entitled "First Amendment to DDA
R:\Housing 2002\cbhamendRDA Reso.DOC
and Promissory Note" between the Agency and 28500 Pujol Street, a California Limited
Partnership, with such changes in each document as may be mutually agreed upon by the
Developer and the Executive Director as are in substantial conformance with the form of
such Agreement which on file in the Office of the Agency Secretary, The Chairperson of
the Agency is hereby authorized to execute the Agreement, including related exhibits and
attachments on behalf of the Agency, A copy of the final Agreement when executed by
the Agency Chairperson shall be placed on file in the Office of the Secretary of the
Agency.
Section 3. The Executive Director of the Agency (or his designee), is hereby
authorized, on behalf of the Agency, to take all actions necessary and appropriate to carry
out and implement the Agreement and to administer the Agency's obligations, respon-
sibilities and duties to be performed under the Agreement and related documents,
including but not limited to the Promissory Note, Deed of Trust, Regulatory Agreement,
acceptances, escrow instructions, certificates of completion and such other implementing
agreements and documents as contemplated or described in the Agreement.
Section 4.
Resolution,
The Secretary of the Agency shall certify the adoption of this
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Redevel-
opment Agency of the City of Temecula at a regular meeting held on the 24th day of June,
2003,
Ron Roberts, Chairperson
A TIEST:
Susan W, Jones, CMC
City Clerk/Agency Secretary
[SEAL]
R:\Housing 2002\cbhamendRDA Reso.DOC
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan Jones, CMC, Secretary of the Redevelopment Agency of the City of
Temecula, do hereby certify that Resolution No, RDA 03- was duly and regularly
adopted by the Board of Directors of the Redevelopment Agency of the City of Temecula at a
regular meeting thereof, held on the 24th day of June, 2003, by the following vote, to wit:
AYES:
BOARDMEMBERS:
NOES:
BOARDMEMBERS:
ABSENT:
BOARDMEMBERS:
ABSTAIN:
BOARDMEMBERS:
Susan W, Jones, CMC
City Clerk/Agency Secretary
R:\Hausing 2002\cbhamendRDA Resa.DOC
FIRST AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT
TIDS FIRST AMENDMENT TO DISPOSmON AND DEVELOPMENT
AGREEMENT (the "Amendment") is dated as of June, 2003 and is entered into by and between
the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate
and politic ("Agency") and 28500 PUJOL ST" L.P" a California limited partnership
("Developer"),
RECITALS
A. Agency and Developer entered into a Disposition and Development Agreement
dated in 2003 (including all exhibits thereto, the "DDA") which provided for, among other
things, the sale of certain land and improvements by Agency to Developer (the "Property"), a
loan by Agency to Developer to be used for the development of the Property as an affordable
rental project (the "Agency Loan") and the execution, delivery and recordation of a Regulatory
Agreement between Agency and Developer (the "Regulatory Agreement"), Capitalized terms
used but not defined in the Amendment shall have the meanings ascribed thereto in the DDA,
B. Agency and Developer have agreed to modify the DDA and the Agency Loan
Documents (defined below) as hereinafter set forth in order to accommodate tax credit investors
in the Developer,
NOW. THEREFORE, in consideration of the foregoing recitals and other consideration,
the adequacy of which is hereby acknowledged, Agency and Developer hereby agree as follows:
1. DDA Modifications. The DDA is hereby modified as follows:
(i) The name of the Developer in the DDA, the Grant Deed, and the Regulatory
Agreement is changed from "28500 Pujol Street, L.P." to "28500 Pujol St., L.P," (and the same
change shall be made to the documents evidencing, securing or otherwise relating to the Agency
Loan, hereinafter collectively referred to as the "Agency Loan Documents"), Such modifications
correct an error in transcription and do not alter the identity of the Developer,
(ii) Notwithstanding Section 4.10 of the DDA, the following shall be permitted
provided Agency receives prior written notice thereof with the copies of the transfer documents
relating thereto (and the Agency Loan Documents shall also permit the following by language
added to elfch document that reflects it is subject to the DDA, as amended by this First
Amendment):
(a) a transfer of a limited partnership interest in Developer, a transfer of a limited
partnership interest in Developer's limited partner, and the admission of the transferees as
limited partners of either Developer or admission of the transferees as limited partners of
either Developer or Developer' s limited partner, provided that in each case the transferee of
such interest is an Affiliate (as hereinafter defined) of Developer's existing limited partner,
and (b) removal and replacement of Developer's general partner, provided that the removed
general partner is replaced by an Affiliate (as hereinafter defined) of Developer's existing
R:\Housing 2002\Firs'amendddaR WOlMAN 1_73681 O_2,DOC73681 0,2
limited partner, For the purposes of this paragraph, the term "Affiliate" shall mean Multi-
Housing Investments, ILC, Simpson Housing Limited Partnership, Simpson Housing
Solutions, LLC (each a "Simpson Entity" and collectively. "Simpson Entities") or any entity
in which a Simpson Entity or Simpson Entities is a "controlling person" (as defined in
Section 20(a) of the Securities Exchange Act of 1934, as amended) or in which a Simpson
Entity or Simpson Entities is (A) the general partner of, (B) the managing member of, or (C)
a limited partner or a investor member owning more than 49% of the limited partner or
membership interests in such limited partnership or limited liability company,
Additionally, Developer may amend its Agreement of Limited Partnership, from time to
time, with prior notice to Agency attaching the applicable amendrnent, to: (A) correct
scrivener's errors; (B) make such agreement consistent with other provisions of the DDA and
the other documents executed in connection with the DDA; (C) bring such agreement into
compliance with the requirements of the California Tax Credit Allocation Committee or any
successor agency or Section 42 of the Internal Revenue Code of 1986, as amended, or the
requirements of the California Debt Limit Allocation Committee or any successor agency or
Section 103, 142, 146 or other applicable sections of the Internal Revenue Code of 1986, as
amended, or the any regulations adopted thereunder; (D) comply with the decision of any
court of competent jurisdiction; (E) vary the allocation of items of profit, loss, credit and
deduction, the distribution of available cash or net cash flow; (F) effect changes in the
Developer's partners to the extent permitted above; and (0) make other changes which do
not affect the enforceability of the DDA or the documents executed in connection with the
DDA, the liability of the signatories thereto or otherwise violate or cause a violation of any
provision of the DDA or the documents executed in connection with the DDA.
(iii) As used herein the term "Event of Default" shall mean a default by Developer
under the Agency Loan Documents or DDA that continues after any notice of default that
Agency is required to give to Developer under the DDA or Agency Loan Documents (but not
applicable law) has been given and any cure period applicable under the DDA or the Agency
Loan Documents (but not applicable law) has expired. Subject to the last sentence of this
paragraph, Developer's limited partner(s) (collectively, "Limited Partner") shall have the right
but not the obligation to cure any curable Event of Default of Developer under the DDA (as
amended) and the Agency Loan Documents (and a violation of the restrictions on transfer of the
Property shall not be deemed curable), and the Agency agrees to accept any cure tendered and
completed by Limited Partner on behalf of Developer (a) in the case of a non-monetary Event of
Default within thirty (30) days after notice of Event of Default, is given, and (b) in the case of a
monetary Event of Default, within ten (10) business days after notice of the Event of Default is
given. Subject to the last sentence of this paragraph, if the cure of a non-monetary Event of
Default requires more than the cure period provided in this paragraph, Limited Partner shall be
entitled to the same extension rights as Developer as set forth in Section 19(c) of the DDA,
provided Limited Partner promptly commences to cure the Event of Default and thereafter
diligently pursues or prosecutes such cure to completion, In addition to any notice required to be
given by Agency to Developer, Agency shall give concurrent written notice of any Event of
Default under the Loan Documents to Limited Partner as follows at the address set forth in
clause (vi) below; such notice shall not constitute notice to the Developer. The notice shall
specify: (a) the nature of the event or deficiency giving rise to the Event of Default, and (b) for
non-monetary defaults, the action required to cure the event or deficiency, if an action to cure is
possible and can be readily ascertained, Notwithstanding the foregoing, in no event shall
2
lI087-0001\7368IOvl.doc
Limited Partner's right to cure an Event of Default extend beyond five (5) calendar days prior to
Agency's foreclosure of its interest in the Property,
(iv) The Agency Loan Documents shall include provisions that, in the event of a
default thereunder, limit the Agency's recourse to the Property, subject to non-recourse
exceptions that are normal and customary for real estate secured loans, as approved by the
director of the Agency.
(v) The Agency Loan Agreement shall be revised to require commercial broad form
general public liability insurance of at least $4,000,000 (rather than $3,000,000),
(vi) The address for notices for the Developer's limited partners shall be as follows
(and notices to them shall be given in accordance with the DDA), but notice to them shall not
constitute notice to the Developer):
Multi-Housing Investments, LLC
320 Golden Shore, Suite 200
Long Beach, CA 90802
Attention: Legal Dept.
Telephone: (562) 256-2000
Fax: (562) 256-2002
2, General Provisions.
a. General Provisions, This Agreement constitutes the entire agreement between the
parties pertaining to the subject matter hereof, and supersedes all prior agreements and
understandings of the parties with respect to the subject matter hereof. This Agreement may not
be modified, amended, supplemented, or otherwise changed, except by a writing executed by
both parties hereto,
b, Waiver, No failure or delay by any party in the exercise of any right hereunder shall
constitute a waiver thereof, nor shall any single or partial exercise of any such right preclude
other or further exercise thereof, or any other right.
c, Counterparts, This Amendment may be executed in two or more counterparts and by
different parties hereto on separate counterparts, each of which when so executed and delivered
shall be deemed an original and all of which, when taken together, shall constitute one and the
same instrument.
d, Governing Law. This Amendment shall be deemed to be a contract made under the
laws of the State of California and for all purposes shall be governed by and construed in
accordance with the laws of the State of California,
e. Attornevs I Fees and Costs. If a dispute arises under or in connection with this
Amendment (including, without limitation, the enforcement or interpretation of this
Amendrnent), the prevailing party (as determined by the trier of fact) shall be entitled to recover
its reasonable attorneys I fees and costs from the other party.
3
11087.0001\736810vl.doc
IN WITNESS WHEREOF, the Parties have entered into this agreement as of the day and
year first above written,
28500 PUJOL ST" L.P.,
a California limited partnership
By: Lynx Realty & Management, u..C,
a California limited liability company,
its Administrative General Partner
By:
Charles Brumbaugh,
Managing Member
By: Corporation for Better Housing,
a California corporation, its Managing General Partner
By:
Charles Brumbaugh
Executive Director
TEMECULA REDEVELOPMENT AGENCY,
a public body, corporate and politic
By:
Ron Roberts, Chairperson
A TIEST:
Susan W. Jones, CMC
City Clerk/Agency Secretary
APPROVED AS TO FORM:
Peter Thorson
Agency Counsel
4
11087-0001\736810v 1 ,doc
ITEM 3
APPROV AL
CITY ATTORNEY
DIRECTOR OF FINANC
CITY MANAGER
CITY OF TEMECULA REDEVELOPMENT AGENCY
AGENDA REPORT
TO:
FROM:
Chairman and Members of the Temecula Redevelopment Agency
Executive Director __
Jim O'Grady, Assistant City Managerr-
June 24, 2003
DATE:
SUBJECT:
Interim Lease of Agency Property - 27500 Jefferson Avenue
RECOMMENDATION:
That the Agency approve a lease agreement with the Donna L. Reeves Trust UTD 7-25-90 for
Agency property located at 27500 Jefferson Avenue for an amount of $7,500 per month,
BACKGROUND: The Temecula Redevelopment Agency is currently in negotiations for the sale
of this property, It is expected that a purchase and sale agreement will be presented to the
Agency for consideration on July 22, 2003, and that escrow will close on approximately
September 15, 2003,
The Norm Reeves Supergroup has indicated an interest in leasing this property on an interim
basis for the storage of cars until the Agency sells this property, The party that the Agency is
negotiating with has indicated that they have no objection to the Agency entering into such a
lease, provided that Norm Reeves would vacate the property prior to escrow closing,
The proposed lease is structured to provide that the lease would terminate, and Norm Reeves
would vacate, upon 10 days written notice by the Agency, The lease rate is proposed to be
$7,500 per month with the lease pro-rated on a daily basis for any partial month rental period,
The City's Economic Development Subcommittee members (Council members Roberts and
Comerchero) recommend that we proceed with such an interim lease,
FISCAL IMPACT: Approval of this amendment will result in revenues of $7,500 per month to
the Agency during this interim period,
ATTACHMENT:
Proposed lease with the Donna L. Reeves Trust
C:IDOGUMENTS AND SETTlNGSIOGRADYJ\MY DOCUMENTSlOGRADYJI27500 JEFFERSONIAGENDA REPORT1- INTERIM LEASE
AGREEMENT WITH REEVES, 06-24-03.DOC 6/17/03
lI087-0001\737892v2,doc
LEASE AGREEMENT
Dated June _, 2003
by and between
THE REDEVELOPMENT AGENCY OF THE
CITY OF TEMECULA, as Lessor
and
DONNA L. REEVES TRUST UTD 7-25-90,
as Lessee
LEASE AGREEMENT
This Lease Agreement ("Lease"), dated ,2003 is made by and between the
REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate and
the politic ("Lessor"), and DONNA L. REEVES TRUST UTD 7-25-90 ("Lessee"), who agree
as follows:
1. Premises, On and subject to the terms and conditions ofthis Lease, Lessor hereby leases
to Lessee and Lessee leases from Lessor that certain real property, together with the fixtures and
improvements located thereon, commonly known as 27500 Jefferson Road, Temecula, California
and legally described on Exhibit I attached hereto and by this reference incorporated herein (the
"Premises")
2, Term.
2.1 Initial Term, The term of this Lease shall be twelve (I2) months, commencing on
the date hereof and ending ,2003; however, either party may terminate this
Lease upon ten (I 0) days' prior written notice to the other, and Lessee hereby expressly
acknowledges that Lessor intends to terminate this Lease by giving such notice in order to
deliver complete possession of the Premises to a purchase ofthe Premises as of a date that will
be shortly after the Lease termination date
3, Rent.
3.1 Amount: Pavment. Lessee shall pay to Lessor as rent for the Premises monthly
payments of $7,500,00, Rent shall be payable in advance, without any deduction or offset
whatever, in lawful money of the United States, commencing on the date the term of this Lease
commences and continuing on the same day of each succeeding month, All rent and other
amounts payable by Lessee to Lessor under this Lease shall be paid to Lessor at its address set
forth in Section 21 of this Lease or to such other persons or at such other places as Lessor may
designate in writing,
3,2 Triple Net Lease, This Lease is what is commonly called a "net, net, net lease", it
being understood that the Lessor shall receive the rent set forth in Section 3,1 free and clear of
any and all impositions, taxes, liens, charges or expenses of any nature whatsoever in connection
with the ownership and operation of the Premises, ,In addition to the rent reserved by Section
3.1, Lessee shall pay to the parties respectively entitled thereto all impositions, insurance
premiums, operating charges, maintenance charges, construction costs, and any other charges,
costs and expenses which arise or may be contemplated under provisions of this Lease during the
term hereof. All such charges, costs and expenses shall constitute additional rent, and upon the
failure of Lessee to pay any of such costs, charges or expenses, Lessor shall have the same rights
and remedies as otherwise provided in this Lease for the failure of Lessee to pay rent. It is the
intention of the parties hereto that this Lease shall not be terminable for any reason by the
Lessee, and that Lessee shall in no event be entitled to any abatement of or reduction in rent
payable under this Lease, except as herein expressly provided, Any present or future law to the
contrary shall not alter this agreement of the parties.
lI087-0001\737892v2.doc
-2-
4, Securitv Deposit. Lessee and Lessor acknowledge that Lessor currently holds $15,000 of
Lessee's funds as a security deposit under a prior lease with Lessee for the premises. Lessee and
Lessor agree that Lessor shall hold such sum as security for faithful performance of Lessee's
obligations hereunder. If Lessee fails to pay rent or other charges due hereunder, or otherwise
defaults with respect to any provision of this Lease, Lessor may use, apply or retain all or any
portion of said deposit for the payment of any rent or other charges in default or for the payment
of any other sum to which Lessee may become obligated by reason of Lessee's default, or to
compensate Lessor for any loss or damage which Lessor may suffer thereby, If Lessor so uses or
applies all or any portion of said deposit, Lessee shall within ten (10) days after written demand
therefor deposit cash with Lessor in an amount sufficient to restore said deposit to the full
amount hereinabove stated, Lessor shall not be required to keep said deposit separate from its
general accounts, If Lessee performs all of Lessee's obligations hereunder, said deposit, or so
much thereof as has not theretofore been applied by Lessor, shall be returned, without payment
of interest or other increment for its use, to Lessee at the expiration of the term hereof, No trust
relationship is created between Lessor and Lessee with respect to said security deposit.
5. Acceptance. Lessee acknowledges that it has heretofore occupied and used the Premises,
and is familiar with and knowledgeable regarding Lessor's title to the Premises and the condition
of the Premises and every part thereof, Lessee accepts the Premises in their AS IS condition on
the date the term of this Lease commences, subject to all applicable zoning, land use conditions
and other matters and restrictions, whether or not of record, affecting the Premises and/or
Lessor's title thereto. Lessor makes no representation, warranty or agreement of any kind or
nature (express or implied) regarding the Premises, the condition of the Premises or any part
thereof, or the suitability of the Premises for the use permitted hereunder or the conduct of
Lessee's business thereon,
6, Use,
6,1 Permitted Use. Lessee shall use the Premises solely for the purpose of storing
new and used automobiles in compliance with applicable law, and Lessee shall not use or permit
the Premises to be used for any other purpose.
6,2 Prohibited Uses. Lessee shall not do or permit to be done in or about the
Premises anything that is illegal or unlawful or that is of a hazardous or dangerous nature..
Lessee shall not do or permit to be done in or about the Premises anything that will increase the
rate of, or cause cancellation of, any insurance for the Premises, Lessee shall not cause, maintain
or permit any nuisance in or about the Premises or commit any waste therein,
6,3 Compliance with Laws, Lessee shall, at Lessee's sole cost and expense, comply
promptly with all applicable statutes, laws, ordinances, rules, regulations, orders, restrictions of
record, and requirements in effect during the term of this Lease or any part of the term of this
Lease regulating the Premises, the use by Lessee of the Premises, and/or the operation by Lessee
of its business therein.
7, Utilities, Lessee, at its own cost and expense, shall pay before delinquency for all water,
gas, heat, electricity, garbage disposal, sewer charges, telephone, and any other utility or service
charges relating to the Premises. Lessor shall have no liability to Lessee for any interruption in
11087-0001\737892v2,doc
-3-
any such utilities or services and Lessee shall not be entitled to any abatement or reduction in
rent due to any such interruption,
8, Taxes,
8.1 Real Propertv Taxes, Lessee shall pay, as provided in Section 8,2, all "Real
Property Taxes" (as hereafter defined) which may be levied, assessed or imposed against or
become a lien upon the Premises or any part thereof during the term of this Lease, The term
"Real Property Taxes" as used in this Lease shall mean and include real estate taxes, assessments
(special or otherwise) including impositions for the purpose offunding special assessment
districts, water and sewer rent, rates and charges (including license fees), and all other taxes,
governmental levies and charges of every kind and nature whatsoever (and whether or not the
same presently exists or shall be enacted in the future), and any substitutes therefor, which may
during the term of this Lease be levied, assessed, imposed, become a lien upon, or due and
payable with respect to, out of or for: (a) the Premises or any part thereof, or the use, occupancy
of possession thereof; (b) any interest of Lessor and/or Lessee (including any legal or equitable
interest of Lessor or its mortgagee, if any) in the Premises or the Lease; (c) the rents receivable
by Lessor, including gross receipt taxes, business taxes and business and occupation taxes; and
(d) the ownership, leasing, operation, maintenance, alteration or repair of the Premises,
8.2 Pavment. Lessee shall pay all Real Property Taxes directly to the appropriate
taxing authority, Lessee shall pay all Real Property Taxes before delinquency and shall provide
Lessor with evidence of such payment within ten (10) days after the making of such payment and
also within ten (10) days following the written request of Lessor. In the event Lessor shall
receive any bill respecting Real Property Taxes payable by Lessee under this Lease, Lessor shall
deliver the same to Lessee at least fifteen (15) days prior to delinquency. Lessor's failure to so
deliver any such bill to Lessee shall not relieve Lessee of its obligation to make the payments
represented thereby, provided that Lessor and not Lessee shall be liable for any interest or
penalties for late payment reasonably resulting from such failure,
8.3 Prorations. If this Lease shall terminate on any date other than the last day of a
tax fiscal year, the amount payable by Lessee during the tax fiscal year in which such
termination occurs shall be prorated on the basis which the number of days from the
commencement of said tax fiscal year to and including said termination date bears to 365, A
similar proration shall be made for the tax fiscal year in which the term commences,
8.4 Personal Propertv and Business Taxes, Lessee shall pay before delinquency any
and all taxes levied, assessed or imposed upon Lessee's leasehold improvements, equipment,
furniture, trade fixtures and any personal property located in, on or about the Premises, Lessee
shall pay before delinquency any and all special taxes and assessments or license fees levied,
assessed or imposed relating to the use of the Premises as permitted by this Lease and the
conduct of Lessee's business on the Premises,
9, Maintenance and Repairs,
9.] Lessee's Obligations. Lessee shall keep in good order, condition and repair the
Premises and every part thereof, structural and nonstructural (whether or not such portion of the
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Premises requiring repair or the means of repairing the same are reasonably or readily accessible
to Lessee, and whether or not the need for such repairs occurs as a result of Lessee's use, any
prior use, the elements or the age of such portion of the Premises), including, without limitation,
all plumbing, heating, air conditioning, ventilating, electrical, lighting facilities and equipment,
fixtures, walls (interior and exterior), foundations, ceilings, roofs (interior and exterior), floors,
windows, doors, plate glass and skylights located on the Premises, and all landscaping,
driveways, parking lots, fences and signs located on the Premises and sidewalks and parkways
adjacent to the Premises.
9.2 Lessor Nonresponsibilitv, It is intended by the parties hereto that Lessor have no
obligation, in any manner whatsoever, to repair and maintain the Premises nor any part thereof
nor the equipment therein, whether structural or nonstructural, all of which obligations are
intended to be that of the Lessee under Section 9.1 hereof, Lessee expressly waives the benefit
of any statute now or hereafter in effect which would otherwise afford Lessee the right to make
repairs at Lessor's expense or to terminate this Lease because of Lessor's failure to keep the
Premises in good order, condition and repair.
9.3 Lessor's Rights, Without limiting any other right or remedy which Lessor may
have under this Lease or at law or in equity, if Lessee fails to perform Lessee's obligations under
this Article 9, Lessor may (but shall not be required to) enter upon the Premises and put the same
in good order, condition and repair, and the cost thereof, together with interest thereon to the date
of payment at the rate often percent (10%) per annum, shall immediately become due and
payable as additional rent to Lessor.
9.4 Surrender. On the expiration of the term of this Lease, or on any sooner
termination of the term of this Lease, Lessee shall surrender the Premises to Lessor in the same
condition as when received, broom clean, ordinary wear and tear only accepted, Lessee shall
repair any damage to the Premises occasioned by the removal of Lessee's trade fixtures,
furnishings, equipment and other personal property pursuant to Section 10,3, which repair shall
include the patching and filling of holes and repair of all structural damage,
10. Alterations,
10,1 Lessor's Consent Required, Lessee shall. not make any alterations,
improvements, additions or changes in, on or about the Premises without first obtaining Lessor's
prior written consent in each instance, which Consent Lessor may grant or withhold in its sole
discretion, Lessor may require that Lessee remove any or all of such alterations, improvements,
additions or changes at the expiration of the term of this Lease, and restore the Premises to their
prior condition. Lessor may require Lessee to provide Lessor, at Lessee's sole cost and expense,
a lien and completion bond in an amount equal to one and one-halftimes the estimated cost of
such improvements, to insure Lessor against any liability for mechanic's and materialmen's liens
and to insure completion of the work. Should Lessee make any alterations, improvements,
additions or changes without the prior approval of Lessor when required, Lessor may require that
Lessee remove any or all of the same,
10,2 Performance of Work, Any alterations, improvements, additions or changes in,
on or about the Premises that Lessee shall desire to make and which require the consent of the
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Lessor shall be presented to Lessor in written form, with proposed detailed plans. If Lessor
shall, give its consent, the consent shall, in addition to any other conditions imposed by Lessor,
be deemed conditioned upon Lessee acquiring all necessary permits and approvals from
appropriate governmental agencies, the furnishing of a copy thereof to Lessor prior to the
commencement of the work, and the compliance by Lessee with all conditions thereof in a
prompt and expeditious manner, Lessee shall pay, when due, all claims for labor and materials
furnished or alleged to have been furnished to or for Lessee at or for use in the Premises, which
claims are or may be secured by any mechanic's or materialmen's liens against the Premises or
any interest therein. Lessee shall give Lessor not less than ten (I 0) days written notice prior to
the commencement or any work in the Premises, and Lessor shall have the right to post notices
ofnomesponsibility in, on or about the Premises as provided by law, If Lessee shall, in good
faith, contest the validity of any such lien, claim or demand, then Lessee shall, at its sole cost and
expense, defend itself and Lessor against the same and shall pay and satisfy any adverse
judgment that may be rendered thereon before the enforcement thereof against the Lessor or the
Premises, upon the condition that if Lessor shall require, Lessee shall furnish to Lessor a surety
bond satisfactory to Lessor in an amount equal to one and one-quarter times the amount of such
contested lien, claim or demand indemnifying Lessor against liability for the same and holding
the Premises free from the effect of such lien or claim, In addition, Lessor may require Lessee to
pay Lessor's attorneys' fees and costs in participating in such action if Lessor shall be required to
do so,
10.3 Removal. Unless Lessor requires their removal, as set forth in Section 10. I, all
alterations, improvements, additions and changes which may be made on the Premises shall
become the property of Lessor and remain upon and be surrendered with the Premises at the
expiration of the term of this Lease, Notwithstanding the provisions of this Section 10.3,
Lessee's trade fixtures, equipment, furnishings and other personal property, other than that which
is affixed to the Premises so that it cannot be removed without material damage to the Premises,
shall remain the property of Lessee and may be removed by Lessee subject to the provisions of
Section 9.4,
11. Insurance,
11.1 Fire and Extended Coverage Insurance, Throughout the term of this Lease, at
Lessee's sole expense, Lessee shall keep in force on the building and other improvements that
are a part of the Premises a policy of fire and extended coverage insurance, with vandalism and
malicious mischief endorsements, to the extent of at least one hundred percent (I 00%) of the
full. replacement cost thereof, without deduction for depreciation, Such policy may be subject
to a deductible of not to exceed $20,000,00, The insurance policy shall be issued in the name of
Lessor and at Lessor's option, shall name Lessor's lender, if any, as an additional insured, The
proceeds from any such insurance shall be paid to Lessor who agrees, subject to the requirements
of its lender, if any, to make the proceeds therefrom available for the restoration of any
destruction to the Premises to the extent required by Section 13,1 of this Lease,
11.2 Liabilitv Insurance, Throughout the term of this Lease, at Lessee's sole Expense,
Lessee shall keep in force a policy of combined single limit bodily injury and property damage
insurance insuring Lessor and Lessee against any liability arising out of the ownership, use,
occupancy or maintenance of the Premises. Such insurance shall be a combined single limit
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policy for personal and bodily injury and property damage in an amount of not less than Five
Million Dollars ($5,000,000) per occurrence, Such policy may be subject to a deductible of not
to exceed $5,000.00, The policy shall insure performance by Lessee of the indemnity provisions
of Section 12.1, but the limits of such insurance shall not limit the liability of Lessee under this
Lease,
11,3 Waiver of Subrogation, Lessee and Lessor each hereby waive any and all rights
of recovery against the other and against the officers, employees, agents and representatives of
the other for loss of or damage to such waiving party or its property or the property of others
under its control to the extent that such loss or damage is insured against under any insurance
policy in force at the time of such loss or damage, Lessee shall, upon obtaining the policies of
insurance required under this Lease, give written notice to the insurance carrier or carriers that
the foregoing mutual waiver of subrogation is contained in this Lease.
11.4 General Requirements, All policies of insurance required under this Lease shall
be with responsible companies admitted to do business in the State of California, Insurance
required to be maintained by Lessee may be maintained in the form of so-called "blanket"
policies insuring the Premises as well as other property owned or occupied by Lessee so long as
Lessor, and at Lessor's option, Lessor's lender, if any, are named insureds and provided that the
coverage required hereunder is not thereby diminished, As often as any such policy shall expire
or terminate, renewal or additional policies shall be procured and maintained in like manner and
to like extent. Lessee shall furnish to Lessor certificates of such insurance at the commencement
of the term of this Lease and upon any renewal or replacement of such insurance. All policies of
insurance must contain a provision that the company writing such policy will give Lessor thirty
(30) days advance written notice of any cancellation or lapse of the effective date or any
reduction in the amounts of insurance, In addition to any other rights which Lessor may have
under this Lease or at law or in equity, if Lessee fails to purchase, renew or maintain any
insurance policies required herein, Lessor shall have the right at its option to purchase, at
Lessee's sole expense, any such insurance and Lessee shall immediately pay the cost thereof,
plus interest at the rate often percent (10%) per annum until the date paid, to the Lessor. All
policies required hereunder shall be written as primary policies and not contributing with or in
excess of any coverage which Lessor may carry.
12, Indemnity,
12,1 Lessee's Indemnitv, Lessee shall indemnify and hold harmless Lessor, the City of
Temecula, and their respective officials, officers, agents, representatives and employees, from
and against any and all claims, actions, liabilities, losses, costs and expenses, arising from
Lessee's use of the Premises or from the conduct of Lessee's business or from any activity, work
or things done, permitted or suffered by Lessee in or about the Premises, or from Lessee's failure
to vacate and surrender the Premises upon the termination of this Lease by Lessor (including,
without limitations, all consequential damages), and shall further indemnity and hold harmless
Lessor, the City of Temecula, and their respective officials, officers, agents, representatives and
employees, from any against any and all claims, actions, losses, liabilities, costs and expenses
arising from any negligence of the Lessee, or any of the Lessee's agents, contractors,
representatives or employees, and from and against all costs, attorneys' fees, expenses and
liabilities incurred in defense of any such claim or any action or proceeding brought therein;
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provided, however, that the foregoing indemnity shall not extend to any claims, actions,
liabilities, losses, costs and expenses to the extent directly arising from the negligent or willful
acts or omissions of Lessor, the City ofTemecula, or their respective officials, officers, agents,
representatives, or employees. In case any action or proceeding be brought by reason of any
matter for which indemnification is provided hereunder, Lessee, at Lessor's option and upon
notice from Lessor, shall defend the same at Lessee's expense by counsel reasonably satisfactory
to Lessor.
12,2 Hazardous Materials Indemnitv, Throughout the term of this Lease, Lessee shall
be responsible, at Lessee's sole expense, for compliance with all applicable laws, regulations,
codes and ordinances--concerning "Hazardous Materials" (as hereinafter defined), Lessee
hereby agrees to indemnify arid hold harmless Lessor, the City of Temecula, and their respective
officials, officers, representatives, employees and agents, from and against any and all claims,
actions, losses, liabilities, judgments, costs and expenses (including, without limitation,
attorneys' fees and all foreseeable and unforeseeable consequential damages), directly or
indirectly arising out of or connected with (a) the use, generation, storage, disposal, release or
threatened release of "Hazardous Materials" in, on, under or about the Premises by Lessee or any
other person, or the presence or use of fuel tanks located in, on, under or about the Premises, and
(b) any required or necessary repair, cleanup or detoxification and the preparation of any closure
or other required plans, whether such action is required or necessary prior to or following the
commencement date of the term of this Lease, to the full extent that such action is attributable,
directly or indirectly, to the presence, use, generation, storage, disposal, release or threatened
release of "Hazardous Materials" in, on, under or about the Premises or the presence or use of
fuel tanks located in, on, under or about the Premises, As used herein, "Hazardous Materials"
means any flammable explosives, radioactive materials, asbestos, PCB's, hazardous waste, toxic
substances or related materials, including, without limitation, substances defined as "hazardous
substances," hazardous materials," or "toxic substances" in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, 42 USC Section 9601, et seq"
the Hazardous Materials Transportation Act, 49 USC Section 1801, et seq" the Resource
Conservation and Recovery Act, 42 USC Section 6901, et seq" any other present or future
federal, state or local law applicable to the Premises, and the rules and regulations adopted or
promulgated under or pursuant to any of the foregoing laws.
12.3 Non-Liabilitv of Lessor. Lessee hereby agrees that Lessor shall not be liable for
injury to Lessee's business or any loss of income therefrom, or for any damage to the goods,
wares, merchandise or other property of Lessee, Lessee's employees, invitees, customers, or any
other person in or about the Premises, nor shall Lessor be liable for injury to the person of
Lessee, Lessee's employees, invitees, customers, or any other person in or about the Premises,
whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or
rain, or from the breakage, lea)cage, obstruction or other defects of pipes, sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, or from other similar cause, whether
said damage or inj ury results from conditions arising upon the Premises or from other sources or
places, and regardless of whether the cause of such damage or injury or the means of repairing
same is inaccessible to Lessee,
13, Damage and Destruction,
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13,1 Partial Damage or Destruction, If the Premises or any part thereof are damaged
or destroyed from any cause whatsoever, whether or not such damage or destruction is covered
by any insurance required to be maintained under this Lease, and if Lessor determines, in its
reasonable judgment, that such damage or destruction can be repaired within sixty (60) days
following the date of such damage or destruction, Lessee shall, at its sole cost and expense,
repair, restore and rebuild the Premises to its condition existing immediately prior to such
damage or destruction and this Lease shall remain in full force and effect. Such repair,
restoration and rebuilding shall be promptly commenced after such damage or destruction has
occurred arid shall be diligently pursued to completion, To the extent that such damage or
destruction is covered by insurance required to be maintained under this Lease, Lessor shall
make the proceeds of such insurance available to Lessee to be used in connection with such
repair, restoration and rebuilding.
13.2 Total Damage or Destruction. If the Premises or any part thereof are damaged or
destroyed from any cause whatsoever, whether or not such damage or destruction is covered by
any insurance required to be maintained under this Lease, and if Lessor shall, in Lessor's
reasonable judgment, determine that such damage or destruction cannot be repaired within sixty
(60) days following the date of such damage or destruction, then this Lease shall, upon written
notice from Lessor, terminate as of the date of such damage or destruction, In such event, Lessor
shall be entitled to receive and retain all proceeds payable with respect to such damage or
destruction under policies of insurance required to be maintained under this Lease,
13,3 Damage or Destruction During Last Sixtv Davs of Term, If the Premises or any
part thereof are damaged or destroyed from any cause whatsoever during the last sixty (60) days
of the term of this Lease (as determined by Lessor based on Lessee's closing date for the sale by
Lessor of the Premises, and without regard to any failure by Lessor, to have sent any termination
notice to Lessee), whether or not such damage or destruction is covered by any insurance
required to be maintained under this Lease, and if Lessor shall, determine that such damage or
destruction cannot be repaired by the date that is at least (10) days prior to the date on which
Lessor desires this Lease to terminate in order to accommodate its sale and delivery of
possession of the Premises, then this Lease shall automatically terminate as of the date of such
damage or destruction, In such event, Lessor shall be entitled to receive and retain all proceeds
payable with respect to such damage or destruction under policies of insurance required to be
maintained under this Lease.
14, Eminent Domain,
14,1 Termination, Ifall or any portion of the Premises shall be taken or appropriated
by any public or quasi-public authority under the power of eminent domain (or similar law
authorizing the involuntary taking of private property, which shall include a sale in lieu thereof
to a public body), this Lease shall terminate effective as of the date possession is taken by said
authority.
14.2 Award, Lessor shall be entitled to any and all income, rent, award, and any
interest thereon whatsoever which may be paid or made in connection with any such taking or
appropriation; provided, however, that nothing herein contained shall be deemed to deny to
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Lessee its right to claim from the condemning authority compensation or damages for its trade
fixtures, personal property or relocation expenses,
15, Assignment and Subletting, Lessee shall not voluntarily, involuntarily, or by operation of
law, assign, transfer, hypothecate, or otherwise encumber this Lease or Lessee's interest therein
or sublet the Premises or any part thereof or permit the use or occupancy thereof by any third
person, it being the understanding and agreement of Lessor and Lessee that this Lease and
Lessee's interest therein is not assignable by Lessee, in whole or in part, and that the Premises
may not be sublet, used or possessed, in whole or in part, at any time by any person other than
Lessee,
16. Rights Reserved bv Lessor, Upon reasonable prior notice, Lessee shall permit Lessor or
its agents to enter the Premises at any time for the purpose of: (a) inspection of the Premises; (b)
showing the Premises to persons wishing to purchase or make a mortgage loan upon the same; or
(c) posting "For Lease" signs and showing the Premises to persons wishing to purchase or rent
the Premises, No exercise by Lessor of any rights herein reserved shall entitle Lessee to any
damage for any injury or inconvenience occasioned thereby nor to any abatement of rent.
17, Lessor Default. If Lessor shall be in default of any covenant of this Lease to be
performed by it, Lessee, prior to exercising any right or remedy it may have against Lessor on
account thereof, shall give Lessor a thirty (30) day written notice of such default, specifying the
nature of such default. Notwithstanding anything to the contrary elsewhere in this Lease, Lessee
agrees that if the default specified in said notice is of such nature that it can be cured by Lessor,
but cannot with reasonable diligence be cured within said thirty (30) day period, then Lessor
shall not be deemed to be in default so long as Lessor within said thirty (30) day period shall
have commenced the curing thereof and shall continue thereafter to diligently cause such curing
to proceed to completion.
18. Lessee Default and Lessor Remedies.
18.1 Lessee Default. The occurrence of any of the following shall constitute a default
of this Lease by Lessee:
(a) The failure by Lessee to pay when due any ofthe rent or any other
payment required to be paid by Lessee hereunder, as and when due, where such failure continues
for three (3) days after written notice from Lessor; or
(b) The failure by Lessee to observe and perform any of the provisions of
Article II of this Lease to be observed or performed by Lessee; or
(c) The failure by Lessee to observe and perform any other provision of this
Lease to be observed or performed by Lessee, where such failure continues for ten (10) days
after written notice thereof from Lessor (but in no event later than the date of the sale by Lessor
of the Premises); provided, that if the nature of such default is such that the same cannot
reasonably, be cured within said period, Lessee shall not be deemed to be in default if it shall
within said period commence such curing and thereafter diligently prosecutes the same to
completion within thirty (30) days after the notice (but in no event later than the date of the sale
by Lessor of the Premises). or
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(d) The inability of Lessee to generally pay its obligations when due, an
assignment for the benefit of Lessee's creditors, the attachment of any material asset of Lessee
which is not bonded against or released within fifteen (15) days of attachment, Lessee's filing of
a petition for relief under the Bankruptcy Code or any similar statute, or the failure of Lessee to
cause to be dismissed any petition of involuntary bankruptcy filed against Lessee within sixty
(60) days after filing; or
(e) Lessee's failure to discharge or stay enforcement of any judgment against
Lessee within thirty (30) days after entry thereof,
18,2 Lessor's Remedies, In the event of any default as aforesaid by Lessee, then in
addition to any and all other rights and remedies available to Lessor at law or in equity, Lessor
shall have the right to immediately terminate this Lease and all rights of Lessee hereunder by
giving written notice to Lessee of its election to do so, If Lessor shall elect to terminate this
Lease, this it may recover from Lessees
(a) The worth at the time of the award of the unpaid rent payable hereunder
which had been earned at the date of such termination; plus
(b) The worth at the time of the award of the amount by which the unpaid rent
which would have been earned after termination and until the time of the award exceeds the
amount of such rental loss which Lessee proves could have been reasonably avoided; plus
(c) The worth at the time of the award of the amount by which the unpaid rent
for the balance of the term after the time of the award exceeds the amount of such rental loss
which Lessee proves could be reasonably avoided; plus
(d) Any other amounts necessary to compensate Lessor for all detriment
proximately caused by Lessee's failure to perform its obligations hereunder (including
reasonable attorneys' and accountants' fees, costs of repair and refurbishment, costs of
recovering possession, costs of new tenant improvements and leasing commissions, and costs
and liabilities of Lessor resulting from any claims by any prospective purchaser of the Premises,
including sums paid by Lessor in settlement of such claims, as agreed to by Lessor in its sole and
absolute discretion),
As used in subparagraphs (a) and (b) above, the "worth at the time ofthe award" is
computed by allowing interest at the rate of ten percent (10%) per annum, As used in
subparagraph (c) above, the "worth at the time of the award" is computed by discounting such
amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the
award plus one percent (I %).
18.3 Right to Relet. In the event of any default as aforesaid by Lessee, Lessor shall
also have the right, with such notice as required by law, with or without terminating this Lease,
to re-enter the Premises and remove all property and persons therefrom, and any such property
may be removed and stored in a public warehouse or elsewhere at the cost and for the account of
Lessee. If Lessor shall elect to re---enter as above provided or shall take possession of said
Premises pursuant to legal proceedings or pursuant to any notice provided by law, and if Lessor
has not elected to terminate this Lease, Lessor may either recover all rental as it becomes due or
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relet the Premises or any part or parts thereof for such term or terms and upon such provisions as
Lessor, in its reasonable judgment, may deem advisable and shall have the right to make repairs
to and alterations of the Premises, If Lessor shall elect to relet as aforesaid, then rental received
by Landlord therefrom shall be applied as follows:
(a) to the payment of all costs and expenses incurred by Lessor in connection
with such reletting;
(b) to the payment of the cost of any alterations of and repairs to the Premises
reasonably necessary to place the Premises in a condition to be rented; and
(c) to the payment of rent due and unpaid hereunder and the residue, if any,
shall be held by Lessor and applied in payment of future rent as the same may become due and
payable hereunder and to any damages which Lessor is otherwise entitled to under this Lease,
Should that portion of such rental received from such reletting during any month, which is
applied to the payment of rent hereunder, be less than the rent payable hereunder during that
month by Lessee, then Lessee shall pay such deficiency to Lessor forthwith upon demand, and
said deficiency shall be calculated and paid monthly,
No re-entry or taking possession of the Premises by Lessor under this Article shall be
construed as an election to terminate this Lease unless a written notice of such intention is given
to Lessee or unless the termination thereof be adjudged by a court of competent jurisdiction.
Notwithstanding any reletting without termination by Lessor because of Lessee's default, Lessor
may at any time after such reletting elect to terminate this Lease because of such default.
19, Priority of Lease and Estoppel Certificates,
19.1 Subordination. At Lessor's election, this Lease shall be subordinate to any and all
trust deeds, mortgages, or other security instruments, ground leases, or leaseback financing
arrangements now existing or which may hereafter be executed covering the Premises and/or the
land underlying the same, and for the full amount of all advances made or to be made thereunder
together with interest thereon, and subject to all the provisions, modifications and replacements
thereof, all without the necessity of having further instruments executed by Lessee to effectuate
the same, Lessee agrees to execute, acknowledge and deliver upon written request by Lessor any
and all documents or instruments which are or may be reasonably necessary or proper to more
fully and certainly assure the subordination of this Lease to any such trust deeds, mortgages or
other security instruments, ground leases, or leasebacks,
19.2 Estoppel Certificates. Lessee, within ten (10) days following written notice from
Lessor, shall execute and deliver to Lessor a certificate stating that this Lease is unmodified and
in full force and effect, or in full force and effect as modified, and stating the modifications. The
certificate shall also state the amount of rent, the dates to which such rent has been paid in
advance, if any, and acknowledge that there are not any uncured defaults on the part of Lessor or
specifying such defaults if any are claimed, and shall state such other matters concerning this
Lease and the Premises as are reasonably requested,
20. Holding Over. Lessee shall have absolutely no right to hold-over after the termination of
this Lease.
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21, Notices, Wherever in this Lease it shall be required or permitted that notice, approval,
advice, consent or demand be given or served by either party to this Lease to or en the other, the
same shall be given or served and shall not be deemed to have been duly given or served unless
in writing and personally delivered or forwarded by certified or registered mail, return receipt
requested, postage prepaid addressed to the address of the parties as specified below. Notice
shall be deemed given upon personal delivery or three (3) days (exclusive of Saturdays, Sundays
and legal holidays) after mailing as aforesaid, Either party may change such address by written
notice given as aforesaid, Each party's initial notice address is:
If to Lessee:
Donna L. Reeves
Norm Reeves Dodge, Chrysler, Jeep
26755 Ynez Road
Temecula, California 92591
If to Lessor:
Executive Director
Redevelopment Agency for the
City ofTemecula
43174 Business Park Drive
Temecula, California 92590
22, Attornevs' Fees, Should either party hereto institute any action or proceeding in court to
enforce any provision hereof or for damages or for declaratory or ether relief hereunder, the
prevailing party shall be entitled to receive from the losing party, in addition to court costs, such
amount as the court may adjudge to be reasonable as attorneys' fees for services rendered to said
prevailing party, and said amount may be made a part of the judgment against the losing party,
23. Miscellaneous,
23.1 Validitv, If any provision of this Lease shall be determined to be void or voidable
by any court of competent jurisdiction, such determination shall not affect any other provision of
this Lease and all such other provisions shall remain in effect. It is the intention of the parties
hereto that if any provision of this Lease is capable oftwo constructions, one of which would
render the provision void or voidable, the provision shall have the meaning which renders it
valid,
23,2 Entire Agreement. The entire agreement between the parties hereto respecting the
leasing of the Premises is set forth in this Lease, and any agreement hereafter made shall be
ineffective to change, modify, alter or discharge it in whole or in part unless such agreement is in
writing and signed by both said parties, All negotiations and oral agreements acceptable to both
parties hereto respecting the leasing of the Premises have been merged into and are included in
this Lease,
23,3 Construction, The laws of the State of California shall govern the validity,
performance and enforcement of this Lease, This Lease has been negotiated by Lessor and
Lessee and this Lease shall not be construed either for or against Lessor or Lessee as the drafter
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hereof, but its construction shall be at all times in accord with the general tenor of the language
so as to reach a fair and equitable result.
23.4 Waiver. A waiver of any breach or default shall not be a waiver of any other
breach or default. Lessor's consent to or approval of any act by Lessee requiring Lessor's
consent or approval shall not be deemed to waive or render unnecessary Lessor's consent to or
approval of any subsequent similar act by Lessee.
23.5 Brokers. Each party represents that it has not had any dealings with any real
estate broker, finder, or other person, with respect to this Lease in any manner. Each party shall
hold harmless the other party from all damages resulting from any claims that may be asserted
against the other party by any broker, finder, or other person, with whom the other party has or
purportedly has dealt.
23.6 Time, Time is of the essence with respect to the performance of each of the
covenants and agreements of this Lease,
23.7 Successors, Each and all of the provisions of this Lease shall be binding upon and
inure to the benefit of the parties hereto and their respective personal representatives, successors
and assigns, subject at all times to all provisions and restrictions elsewhere in this Lease
regarding assignment, transfer, encumbering or subletting by Lessee of all or any part of the
Premises or Lessee's interest in this Lease.
23,8 Captions. The captions and table of contents shown on this Lease are for
convenience of reference only and shall not, in any manner, be utilized to construe the scope or
the intent of any provisions thereof,
23,9 Gender. Unless some other meaning and intent are apparent from the context, the
plural shall include the singular and vice versa, Masculine, feminine and neuter words shall be
interchangeable,
23,10 Nondiscrimination, Lessee covenants by and for itself, its heirs, executors,
administrators, successors and assigns, and all persons claiming under or through them, that this
Lease is made and accepted upon and subject to the following conditions: There shall be no
discrimination against or segregation of, any person or group of persons on account of sex, race,
age, religion, handicap, marital status, color, creed, ancestry or national origin in the leasing,
subleasing, transferring, use, or enjoyment of the Premises herein leased, nor shall Lessee itself
or any person claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use or occupancy
of tenants, lessees, subtenants, sublessees or vendees in the Premises herein leased,
23.11 Survival of Rights, All rights and remedies of Lessor under this Lease, including,
without limitation, rights to indemnification, shall survive the expiration or earlier termination of
the term of this Lease.
II087-0001\737892v2.doc
-14-
IN WITNESS WHEREOF, the parties hereto have executed this Lease Agreement by
their respective duly authorized officers, agents or representatives on the date first above written,
DONNA L. REEVES UTD 7-25-90
By
Donna L. Reeves
REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA
By
, Chairperson
Attest:
By
, Secretary
Approved as to Form:
By
Bruce Galloway of
Richards, Watson & Gershon, Counsel to
Lessor
lI087-0001\737892v2.doc
-15-
EXHIBIT "A"
(LEGAL DESCRIPTION)
Parcel 3, as shown by parcel map 7913, on file in Book 35 Pages 63 and 64 of parcel maps,
records of Riverside County, California, [PLEASE VERIFY/CONFIRM]
l1087-0001l737892v2.doc
-16-
RDA
DEPARTMENTAL
REPORT
APPROVAL
CITY ATTORNEY
FINANCE DIRECTOR
CITY MANAGER
TEMECULA REDEVELOPMENT AGENCY
AGENDA REPORT
TO: Executive Director/Redevelopment Agency Members
FROM: John Meyer, Redevelopment Director ~
DATE: June 24, 2003
SUBJECT: Monthly Departmental Report
Attached for your information is the monthly report as of June 24, 2003 for the Redevelopment
Department.
First Time Homebuvers Proaram
Funding in the amount of $100,000 is available for FY 02 -03,
ResidentiallmDrovement Proarams
The program budget for FY 02/03 is $250,000, with $171,100 funded on 40 units,
Affordable Housina
The Cottages of Old Town project consists of 14 new single-family detached homes and 3
rehabilitated single-family homes located on Sixth Street. The Groundbreaking ceremony was
held on February 18, 2003, Construction has begun and the project will be completed by the
end of the year,
Habitat for Humanitv
Council entered in to a Disposition and Development Agreement (DDA) with Habitat for
Humanity on February 11, 2003 to develop a home-ownership project within the Pujol
Neighborhood. The project located on the northwest corner of Pujol and First Streets, will
consist of 6 new single-family detached homes, The total project site is approximately 37,000
square feet with approximate lot sizes of 5,000, The houses are arranged along Pujol Street
and a private lane,
R:\SYERSKlMONTHLL Y\June2003,doc
1
Rancho Meadows Condominiums
The Council approved a housing rehabilitation loan for the Rancho Meadows Housing Project
on February 11, 2003, Rancho Meadows is a 146-unit condominium project composed of two,
three and four bedroom units, The proposed rehabilitation work includes roofing, siding,
painting, fencing, paving, garage doors and related items,
Senior Housina
Council entered into a Disposition and Development Agreement (DDA) on January 14, 2003
with Community for Better Housing (CBH) for a 66 unit affordable senior housing project on
Pujol Street. The project will be two-story garden-style apartments and project amenities, which
will include a community room, and swimming pool. Construction has begun and will be
completed by early 2004,
Old Town Communltv Theater
The Architect has submitted the construction drawings to the City for the second plan check,
The Mercantile Buildina Retrofit
The earthquake retrofit has been completed. The replacement of the exterior brick mortar and
the foundation work has been completed and the steel braces have been installed, The final
phase will be completed during the construction of the Old Town Community Theater.
Bailv's Restaurant
Council entered into a Disposition and Development Agreement (DDA) with Chris and Kim Baily
on March 25,2003 to develop a restaurant on the property located at Old Town Front and 2nd
Street. The building will consist of casual and patio dining on the first floor with a fine dining
restaurant on the second floor. The anticipated opening is scheduled for November 2 - 3, 2003,
Facade ImDrovementlNon-Conformina Sian Proaram
The following facade improvement/sign projects are in process or have recently been
completed:
· Hitching Post
Sign Program
. Penfold Building
Sign Program - Completed
· Homes Magazine
Sign Program
· Butterfield Inn - Now Rodeway Inn
Sign Program - Completed
R:\SYERSKlMONTHll YlJune2003.doc
2
Old Town PromotionslMarketina
. Street Paintina Festival
The Third Annual Street Painting Festival was held on June 21 & 23 in Old Town
Temecula, The weekend featured over 60 artists drawing chalk art in the streets of Old
Town, In just three years, the festival has already developed a loyal following of
professional artists and street painting muralists, All of the top artists of 2002 returned to
this year's festival. The weekend featured over 100 artists painting murals ranging in
size from 4 foot by 6 foot to a 10 foot by 12 foot blocks on the asphalt.
Street Painting originated in Italy as a religious art form honoring the Madonna, Santa
Barbara was the first city to bring street painting to the United States and now hosts one
of the most popular events, "I Madonnari" over the Memorial Day Weekend, Street
painting originated in Italy with the artist gaining the title "Madonnari" after their historical
practice of creating chalk paintings of the Madonna, Now the name Madonnari implies
Italian Street Painting that expands beyond the scope of its original religious nature,
Other cities who stage successful events are: Pasadena, Mission Viejo, Little Italy in San
Diego, San Rafael, Valencia and the newest one in Carlsbad, California, Long running
events such as Pasadena's, Santa Barbara's and San Rafael's draw 10,000 to 30,000
spectators and hundreds of artists who make the circuit of street painting festivals on the
west coast. This year, Manuel Gonzalez was a featured artist stationed at Main and
Front Street. Aside form being a founding member of the Pasadena Absolut Chalk
Festival, Manuel spends his summers painting murals at the Music Center in Los
Angeles,
In addition the bands, Calypso Compromise and Los Angeles Incas performed both
Saturday and Sunday on stage on the corner of Main and Old Town Front Street. The
event also included craft vendors and food vendors, The Street Painting Festival was
free to the public and the artists,
Over the next several months, the Agency will also be hosting several special events in
Old Town Temecula, These events would include the First Friday - Hot Summer Nights
beginning July 5 and continuing through October 3 in Old Town Temecula,
R:\SYERSKlMONTHLL YlJune2003,doc
3
Watch the asphalt canvases become works of art as dozens of artists create murals on
Old Town Front Street * 10 a.m. to 5 p.m.
The event is Free to the PubliG Plenty o( oreos (or (omilies and young artists to aeate their own works o( art.
PLUS m Pan Flute sounds o( Apurimac Soturdoy and Steel Drum inspired Congo lines o( Calypso Compromise Sunday.
call for more information (909) 694-6412
or visit www.temeculacalifornia.com
Old Town Temecula
~nttl PAtNliN6 ~
FErrtVAL~
2003 STREET PAINTER APPLICATION
FESTIVAL DATES:
APPLICATION DEADLINE:
WORKSHOP
TtH(CU!."
June 21 and 22, 2003
June 13, 2003
Saturday, May 31, 9 a,m,
Saturday, May 3, 9 a,m,
Old Town T emecula Farmers Market
6" and Front Street
Saturday, June 14, 10 a,m. Community National Bank Parking Lot
27541 Ynez Road, Temecula, Ca 92591
The Review Committee will begin its process May 31, 2003
Applicants will be notified regarding their acceptance by June 14, 2003.
Artists who provide their own sponsor will be automatically included as
Street Painters. However, it is not necessary for artist to find their own
Sponsors. We will do it for you.
COMMUNITY
NATIONAL BANK
-;
APPLICATION REVIEW:
Please type or print the following information:
Name
Address
Telephone (home)
E-mail address
City
Age (please circle) (6-11) (12-14) (15-18) (19-25) (over 25)
Zip
(work)
(fax)
Website address
Please list names, addresses & phone #'s of any assistant artists:
Please provide two or three color slides or prints, identified with your name that is representative of your work. Your photos and slides will not
be returned.
1. A sketch of and/or description of your proposed street painting is requested. If you are doing a reproduction (your own work or the
work of another artist), please submit a copy of the original image along with your sketch. You may use the reverse side of this form
for the sketch and description.
2. Chalk will be provided, however, if you are using a predominant color in your design you may want to purchase that color before the
festival.
3, ARTWORK FOR THE FESTIVAL MUST BE APPROPRIATE FOR FAMILY PUBLIC VIEWING. No nudes or political statements
will be accepted.
Indicate your 1", 2nd, and 3"' choices for square size, Paintings will be on asphalt streets, We will do our best to give you your first
choice.
4'x6' Square (Vertical) 10'x10' Square
6'x6' Square 10'x12' (vertical)
6'x10' (Vertical) (indicate size) MUST HAVE HORIZONTAL FORMAT
There will also be a FREE FORM and MASTERS section for all artists. Masters must remain within the framenines of their desired square.
Free form artists will be allowed to paint outside the lines. Masters Free Form
We have a few horizontai formats available if a vertical format creates a problem with your design. Please indicate your need in your concept
description as well as above. This is critical to placement of the sponsor's name on your square.
The undersigned artist (guardian if under 18) grants a non-exclusive license to the CITY OF TEMECULA to reproduce, in any medium, hislher
art. The undersigned further licenses the CITY OF TEMECULA to re-use, publish and republish photography of the artist (including minors) in
any medium, The undersigned artist further grants the CITY OF TEMECULA use of the artist's name (including minors), biographical
description and likeness in any media.
Signature Date
Mail application, slides, sketch and description of proposed street painting image to the OLD TOWN TEMECULA STREET PAINTING FESTIVAL,
21705 COMO STREET, Wildomar, CA 92595 For infonnation call (909) 678-1456 or check out www.temeculacalifornia.com.
TEMECULA PUBLIC
FINANCING AUTHORITY
ITEM 1
MINUTES OF A REGULAR MEETING
OF THE TEMECULA PUBLIC FINANCING AUTHORITY
MAY 13,2003
A regular meeting of the City of Temecula Public Financing Authority was called to order at
7:56 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula,
ROLL CALL
PRESENT:
5
AGENCY MEMBERS:
Comerchero, Naggar, Pratt, Roberts,
and Stone
ABSENT:
o
AGENCY MEMBER:
None
Also present were Executive Director Nelson, City Attorney Thorson, and City Clerk Jones.
PUBLIC COMMENTS
No input.
CONSENT CALENDAR
1 Minutes
RECOMMENDATION:
1.1 Approve the minutes of April 22, 2003,
MOTION: Agency Member Naggar moved to approve Consent Calendar Item NO.1. The motion
was seconded by Agency Member Comerchero and voice vote reflected unanimous approval.
AUTHORITY BUSINESS
2 Ratifyino Election and Approval of Issuance of Bonds for Temecula Public Financino
Authoritv Community Facilities District No, 03-1 (Crowne Hill) 2.1 Approve Staff
Recommendation (5-0-0) MN/JC; 2.2 Approve Staff Recommendation (5-0-0) MN/JC
RECOMMENDATION:
2,1 Adopt a resolution entitled:
RESOLUTION NO. TPFA 03-09
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY CALLING
SPECIAL RATIFYING ELECTION WITHIN COMMUNITY
FACILITIES DISTRICT NO, 03-1 (CROWNE HILL)
R:minutes,tpfaI042203
2.2 Hold an election ratifying the formation of Temecula Public Financing Authority
Community Facilities District No, 03-1 (Crowne Hill) (the "CFD"), the levy of
special taxes in the CFD, the incurrence of indebtedness of the CFD and an
appropriations limit for the CFD, and then adopt the resolutions entitled:
RESOLUTION NO. TPFA 03-10
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY DECLARING
RESULTS OF SPECIAL RATIFYING ELECTION AND
DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN
RESOLUTION NO. TPFA 03-_
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING
THE ISSUANCE OF SPECIAL TAX BONDS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY FOR
TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY
FACILITIES DISTRICT NO, 03-1 (CROWNE HILL), APPROVING
AND DIRECTING THE EXECUTION OF A FISCAL AGENT
AGREEMENT AND APPROVING OTHER RELATED
DOCUMENTS AND ACTIONS
Reviewing the process with regard to this item, City Attorney Thorson reviewed the staff report
(as per agenda material), noting that approval of the bond documents (second resolution under
2.2) should be continued to a later meeting.
MOTION: Agency Member Naggar moved to adopt Resolution No. TPFA 03-09. The motion
was seconded by Agency Member Comerchero and voice vote reflected unanimous approval.
At this time, a short recess was taken in order for City Clerk Jones to tabulate the election
results. It was noted that of the 301 qualified votes, all were in favor.
MOTION: Agency Member Naggar moved to adopt Resolution No, TPFA 03-10. The motion
was seconded by Agency Member Comerchero and voice vote reflected unanimous approval.
PUBLIC HEARING
3 Formation of Community Facilities District No. 01-3 (Wolf Creek) and Amendment of
Resolution of Intention for form the District
RECOMMENDATION:
3.1 Adopt a resolution entitled:
R:minutes.tpfa\042203
2
RESOLUTION NO. TPFA 03-11
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY MAKING
FINDINGS OF COMPLEXITY OF PROPOSED COMMUNITY
FACILITIES DISTRICT NO. 01-3 (WOLF CREEK) AND
AMENDING RESOLUTION OF INTENTION TO FORM THE
DISTRICT'
President Mayor Stone opened the public hearing.
MOTION: Agency Member Naggar moved to adopt Resolution No. TPFA 03-11. The motion was
seconded by Agency Member Comerchero and voice vote reflected unanimous approval.
MOTION: Agency Member Comerchero moved to continue the public hearing to June 24, 2003.
The motion was seconded by Agency Member Roberts and voice vote reflected unanimous
approval.
EXECUTIVE DIRECTOR'S REPORT
No comment.
BOARD OF DIRECTORS' REPORTS
No comments.
ADJOURNMENT
At 7:44 P,M., the Temecula Public Financing Authority meeting was formally adjourned.
Jeffrey E, Stone, Chairman
ATTEST:
Susan W. Jones, CMC
City Clerk/Agency Secretary
[SEAL]
Rminutes,tpfal042203
3
ITEM 2
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANC
CITY MANAGER
TEMECULA PUBLIC FINANCING AUTHORITY
AGENDA REPORT
TO:
Temecula Public Financing Autholity
FROM:
Executive Director Nelson
DATE:
June 24, 2003
SUBJECT:
Formation of Community Facilities District No. 01-3 (Wolf Creek) and
Amendment of Resolution of Intention to form the Distlict
RECOMMENDATION: Continue the public healing to the meeting of July 8,2003.
r
I
ITEM 3
APPROV
CITY ATTORNEY
DIR,OF FINANCE
CITY MANAGER
TEMECULA PUBLIC FINANCING AUTHORITY
AGENDA REPORT
TO: Temecula Public Financing Authority
FROM: Executive Director Shawn Nelson
DATE: June 24, 2003
SUBJECT: Approval of Issuance of Bonds for Temecula Public Financing Authority
Community Facilities District No, 03-1 (Crowne Hill)
RECOMMENDATION:
That the Board of Directors adopt a resolution entitled:
RESOLUTION NO. TPFA 03-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING
THE ISSUANCE OF SPECIAL TAX BONDS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY FOR
TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY
FACILITIES DISTRICT NO, 03-1 (CROWNE HILL), APPROVING
AND DIRECTING THE EXECUTION OF A FISCAL AGENT
AGREEMENT AND APPROVING OTHER RELATED
DOCUMENTS AND ACTIONS
BACKGROUND: LENOne, Inc" an affiliate of Lennar Homes of California, Inc. ("Lennar"),
PCCIII - Crowne Hill, LLC, and KB Homes Coastal, Inc" three of the entities that own land in
the Crowne Hill development (collectively, the "Original Landowners") have requested that the
Authority form a community facilities district (the "CFD") to provide funds to eliminate a County
special assessment lien on the land in the CFD (the "Prior Lien"), as well as to finance various
publiC improvements to be constructed in the City of Temecula. On March 25, 2003, (i) a publiC
hearing was held regarding the formation of the CFD, (ii) the Board of Directors adopted a
resolution of formation of the CFD, (Iii) an election was held wherein the Original Landowners
approved the CFD, the levy of a special tax on land located in the CFD, and the issuance of
20009.04:J6824
bonds by the Authority for the CFD, and (iv) the CFD was declared to be officially formed, At
the time of the March 25th election, it was thought that the Original Landowners were the then
owners of all of the land in the CFD,
Subsequent to March 25, 2003, the Authority was advised that one or more of the Original
Landowners had transferred ownership of parcels in the CFD to two other entities prior to the
March 25th election, so that those two other entities did not have, but should have had, an
opportunity to case ballots in the election regarding the CFD, In order to confirm the
establishment of the CFD, Bond Counsel advised that the Authority should hold a new election
at which all owners of property in the CFD as of March 25, 2003 could be afforded an
opportunity to vote regarding the CFD, On May 13, 2003, (i) the Authority adopted a resolution
calling for a new election regarding formation of the CFD, (ii) an election was held wherein the
five owners of the land in the CFD as of March 25, 2003 voted in favor of the CFD, the levy of a
special tax on land located in the CFD, and the issuance of bonds by the Authority for the CFD,
and (iii) the Authority adopted a resolution canvassing the election,
The landowners within the CFD would now like the Authority to authorize the issuance of bonds
for the CFD. In that regard, various documents have been prepared relative to the issuance of
the bonds by the Authority for the CFD, including (i) a Fiscal Agent Agreement which provides
the terms of the bonds to be issued and establishes the funds and accounts from which the
CFD bond program will be administered; (ii) a Preliminary Official Statement which describes
the bond program, to be used to assist in the offering of the bonds to potential investors; (iii) a
Bond Purchase Agreement, whereby the bonds will be sold by the Authority to Stone &
Youngberg LLC (the "Underwriter") for sale by the Underwriter to the public; and (iv) a
Continuing Disclosure Agreement pursuant to which the Authority will agree to provide certain
information regarding the bond program to bond investors and certain nationally-recognized
information repositories, City Staff and consultants have reviewed these documents and they
are now in form ready for approval by the Board of Directors so that the sale and issuance of
the bonds for the CFD can occur.
The maximum principal amount of the bonds that may be issued by the Authority for the CFD is
$25,000,000, Due to certain constraints regarding maximum special taxes that may be levied
on property in the CFD, it is proposed that no more than $12,500,000 of the bonds be issued at
this time, with an expectation that, within 3 years, Lennar will request that the Authority issue
additional parity bonds for the CFD up to the total $25,000,000 bond authorization, The
proceeds of the first issue of the bonds will be used to eliminate the Prior Lien and to finance
various public improvements specified in the CFD proceedings,
If the Board of Directors adopts the Resolution authorizing the issuance of the bonds, it is
expected that the bonds will be issued on or after July 23, 2003,
FISCAL IMPACT: The CFD will be authorized to levy special taxes to repay its indebtedness,
and to pay the annual costs of administration of the CFD, The CFD will only be authorized to
levy the special taxes on land included within the boundaries of the CFD,
The bonds will not be obligations of the City of Temecula, or general obligations of the Authority
or the CFD, but will be limited obligations of the Authority for the CFD secured solely by the
special taxes levied in the CFD and amounts held in certain funds and accounts established
under the Fiscal Agent Agreement for the bonds, All costs of issuance of the bonds will be paid
from the proceeds of the bonds. All administrative costs of the CFD and the bonds will be paid
from proceeds of the special taxes levied in the CFD,
-2-
Attachments:
Resolution
Fiscal Agent Agreement
Preliminary Official Statement
Bond Purchase Agreement
Continuing Disclosure Agreement
-3-
RESOLUTION NO. TPFA 03-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING
THE ISSUANCE OF SPECIAL TAX BONDS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY FOR
TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY
FACILITIES DISTRICT NO. 03-1 (CROWNE HILL), APPROVING
AND DIRECTING THE EXECUTION OF A FISCAL AGENT
AGREEMENT AND APPROVING OTHER RELATED
DOCUMENTS AND ACTIONS
WHEREAS, this Board of Directors has conducted proceedings under and pursuant to
the Mello-Roos Community Facilities Act of 1982 (the "Law"), to form the Temecula Public
Financing Authority Community Facilities District No, 03-1 (Crowne Hill) (the "District"), to
authorize the levy of special taxes upon the land within the District, and to issue bonds secured
by the special taxes the proceeds of which are to be used to finance certain public
improvements (the "Facilities") and the elimination of a prior lien (the "Prior Lien"), all as
described in the Resolutions entitled "A Resolution of the Board of Directors of the Temecula
Public Financing Authority of Formation of Temecula Public Financing Authority Community
Facilities District No, 03-1 (Crowne Hill) Authorizing the Levy of a Special Tax Within the District,
Preliminarily Establishing an Appropriations Limit for the District and Submitting Levy of the
Special Tax and the Establishment of the Appropriations Limit to the Qualified Electors of the
District" and "A Resolution of the Board of Directors of the Temecula Public Financing Authority
Determining the Necessity to Incur Bonded Indebtedness Within Temecula Public Financing
Authority Community Facilities District No. 03-1 (Crowne Hill) and Submitting Proposition to the
Qualified Electors of the District," which Resolutions were adopted by this Board of Directors on
March 25, 2003; and
WHEREAS, pursuant to said resolutions, an election was held within the District on
March 25, 2003 and the qualified electors approved the propositions of the incurrence of the
bonded debt, the establishment of the appropriations limit and the levy of the special tax by
more than two-thirds of the votes cast at said special election; and
WHEREAS, there have been submitted to this Board of Directors for its approval a
Fiscal Agent Agreement (the "Fiscal Agent Agreement") providing for the issuance of the Bonds
(as defined in Section 1 below) and the use of the proceeds of the Bonds to finance the
Facilities and to eliminate the Prior Lien, as well as a Preliminary Official Statement (the
"Preliminary Official Statement") describing the Bonds, a bond purchase agreement to be used
in connection with the sale of the Bonds (the "Purchase Contract") and a Continuing Disclosure
Agreement relating to the Bonds (the "Continuing Disclosure Agreement"), and this Board of
Directors, with the aid of Authority staff, has reviewed said documents and found them to be in
proper order; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to
have been performed precedent to and in the issuance of said bonds and the levy of said
special taxes as contemplated by this Resolution and the documents referred to herein exist,
have happened and have been performed in due time, form and manner as required by the laws
of the State of California, including the Law,
R:/Resos 2003/Resos 03-_
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula
Public Financing Authority as follows:
Section 1. Pursuant to the Law, this Resolution and the Fiscal Agent Agreement,
special tax bonds of the Temecula Public Financing Authority (the "Authority") for the District
(the "Bonds") in an aggregate principal amount not to exceed $25,000,000 are hereby
authorized to be issued, such bonds to be designated the "Temecula Public Financing Authority
Community Facilities District No, 03-1 (Crowne Hill) Special Tax Bonds" and the first series of
such bonds designated "Series 2003-A" in an aggregate principal amount not to exceed
$12,500,000 (the "Series 2003-A Bonds") are hereby authorized to be issued and sold as
provided herein, The Series 2003-A Bonds shall be executed in the form set forth in and
otherwise as provided in the Fiscal Agent Agreement.
The Board of Directors hereby finds and determines that the Series 2003-A Bonds, based on
the appraisal of Stephen G, White, MAl, dated March 19,2003, have in excess of a one to three
lien to value ratio as required by the Authority's Local Goals and Policies for Community
Facilities Districts, adopted by the Board of Directors on April 10, 2001 (the "Local Goals and
Policies"), The Board of Directors finds that the Series 2003-A Bonds, when issued pursuant to
the Fiscal Agent Agreement, will be in accordance with the Local Goals and Policies, The Board
of Directors further finds that the sale of the Series 2003-A Bonds at negotiated sale as
contemplated by the Purchase Contract will result in a lower overall cost.
Section 2, The Fiscal Agent Agreement with respect to the Bonds, in the form
presented to this Board of Directors at this meeting, is hereby approved, The Executive Director
is hereby authorized and directed to execute and deliver the Fiscal Agent Agreement in said
form, with such additions thereto or changes therein as are approved by the Executive Director
upon consultation with the Authority's General Counsel and Bond Counsel, the approval of such
additions or changes to be conclusively evidenced by the execution and delivery of the Fiscal
Agent Agreement by the Executive Director, The date, manner of payment, interest rate or
rates, interest payment dates, denominations, form, registration privileges, manner of execution,
place of payment, terms of redemption and other terms of the Series 2003-A Bonds shall be as
provided in the Fiscal Agent Agreement as finally executed.
Section 3, The Purchase Contract between the Authority and Stone & Youngberg LLC
(the "Underwriter"), in the form presented to the Board of Directors at this meeting, is hereby
approved, The Executive Director is hereby authorized and directed to accept the offer of the
Underwriter to purchase the Series 2003-A Bonds contained in the Purchase Contract (provided
that the aggregate principal amount of the Series 2003-A Bonds sold thereby is not in excess of
$12,500,000, the true interest cost of the Series 2003-A Bonds is not in excess of 7,00% and
the underwriter's discount is not in excess of 2,25% of the aggregate principal amount of the
Series 2003-A Bonds) and to execute and deliver the Purchase Contract in said form, with such
additions thereto or changes therein as are recommended or approved by such officer upon
consultation with the Authority's General Counsel and Bond Counsel, the approval of such
additions or changes to be conclusively evidenced by the execution and delivery of the
Purchase Contract by the Executive Director,
Section 4. The Preliminary Official Statement, in the form presented to the Board of
Directors at this meeting, is hereby approved. The Executive Director is hereby authorized and
directed, for and in the name and on behalf of the Authority, to make changes to the Preliminary
Official Statement prior to its dissemination to prospective investors, and to brin9 the Preliminary
Official Statement into the form of a final official statement (the "Official Statement") including
R:/Resos 2003/Resos 03-_
2
such additions thereto or changes therein as are recommended or approved by such officer
upon consultation with Authority's General Counsel and Disclosure Counsel. The Executive
Director is hereby authorized and directed to execute and deliver the Official Statement. The
Underwriter is hereby authorized to distribute copies of the Preliminary Official Statement to
persons who may be interested in the purchase of the Series 2003-A Bonds and is directed to
deliver copies of the Official Statement to all actual purchasers of the Series 2003-A Bonds,
The Executive Director is hereby authorized to execute a certificate or certificates to the effect
that the Official Statement and the Preliminary Official Statement were deemed "final" as of their
respective dates for purposes of Rule 15c2-12 of the Securities Exchange Act of 1934, and is
authorized to so deem such statements final.
Section 5, The Continuing Disclosure Agreement related to the Series 2003-A Bonds,
in the form presented to the Board of Directors at this meeting, is hereby approved, The
Executive Director is hereby authorized and directed, for and in the name of and on behalf of
the Authority, to execute and deliver the Continuing Disclosure Agreement in said form, with
such additions thereto or changes therein as are deemed necessary, desirable or appropriate
by the Executive Director upon consultation with the Authority's General Counsel and
Disclosure Counsel, the approval of such changes to be conclusively evidenced by the
execution and delivery by the Executive Director of the Continuing Disclosure Agreement.
Section 6, The Authority hereby covenants, for the benefit of the Bondowners, to
commence and diligently pursue to completion any foreclosure action regarding delinquent
installments of any amount levied as a special tax for the payment of interest or principal of the
Bonds, said foreclosure action to be commenced and pursued as more completely set forth in
the Fiscal Agent Agreement.
Section 7, The Series 2003-A Bonds, when executed, shall be delivered to the Fiscal
Agent for authentication, The Fiscal Agent (as defined in the Fiscal Agent Agreement) is hereby
requested and directed to authenticate the Series 2003-A Bonds by executing the Fiscal Agent's
certificate of authentication and registration appearing thereon, and to deliver the Series 2003-A
Bonds, when duly executed and authenticated, to the Underwriter in accordance with written
instructions executed on behalf of the Authority by the Executive Director, which instructions
such officer is hereby authorized and directed, for and in the name and on behalf of the
Authority, to execute and deliver to the Fiscal Agent. Such instructions shall provide for the
delivery of the Series 2003-A Bonds to the Underwriter upon payment of the purchase price
therefor,
Section 8, All actions heretofore taken by the officers and agents of the Authority with
respect to the establishment of the District and the sale and issuance of the Series 2003-A
Bonds are hereby approved, confirmed and ratified, and the proper officers of the Authority are
hereby authorized and directed to do any and all things and take any and all actions and
execute any and all certificates, agreements and other documents, which they, or any of them,
may deem necessary or advisable in order to consummate the lawful issuance and delivery of
the Series 2003-A Bonds in accordance with this Resolution, and any certificate, agreement,
and other document described in the documents herein approved, Whenever in this Resolution
any officer of the Authority is authorized 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 shall be
absent or unavailable,
R:/Resos 2003/Resos 03-_
3
Section 9. This Resolution shall take effect upon its adoption,
PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temecula
Public Financing Authority at a meeting held on the 24th day of June, 2003,
Jeffrey E, Stone, Chairperson
ATTEST:
Susan W, Jones, CMC
City Clerk/Authority Secretary
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan Jones, Secretary of the Temecula Public Financing Authority, HEREBY DO
CERTIFY that the foregoing Resolution No. TPFA 03-_ was duly adopted at a special
meeting of the Board of Directors of the Temecula Public Financing Authority on the 24th day of
June, 2003, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
BOARDMEMBERS:
BOARDMEMBERS:
BOARDMEMBERS:
BOARDMEMBERS:
Susan W, Jones, CMC
City Clerk/Authority Secretary
R:/Resos 2003/Resos 03-_
4
Quint & Thimmig LLP
3/7/03
3/14/03
5/30/03
FISCAL AGENT AGREEMENT
by and between the
TEMECULA PUBLIC FINANCING AUTHORITY
and
U.S. BANK NATIONAL ASSOCIATION,
as Fiscal Agent
Dated as of June 1,2003
Relating to:
$
Temecula Public Financing Authority
Community Facilities District No. 03-1
(Crowne Hill)
Special Tax Bonds, Series 2003-A
R:/Agenda Reports/Fiscal Agent TPFA Crowne Hill 6 24
Section 1,01,
Section 1 .02.
Section 1 .03.
Section 2.01.
Section 2.02.
Section 2.03.
Section 2,04.
Section 2,05,
Section 2.06.
Section 2,07,
Section 2.08.
Section 2,09,
Section 2.10.
Section 2.11,
Section 2,12,
Section 2.13,
Section 2.12,
Section 3.01,
Section 3.02,
Section 3.03.
Section 4.01.
Section 4.02.
Section 4.03,
Section 4,04,
Section 4.05.
Section 4.06,
Section 4.07,
Section 4,08,
Section 5.01 .
Section 5.02.
Section 5.03,
Section 5.04.
Section 5.05,
Section 5,06,
Section 5.07.
Section 5.08.
TABLE OF CONTENTS
ARTICLE I
STATUTORY AUTHORITY AND DEFINITIONS
Authority for this Agreement ,.................................................,............,................................ 3
Agreement for Benefit of Owners of the Bonds..................................................................,3
Definitions"""".......................,..,..".",.""""""""........................................................ ......,.3
ARTICLE II
THE BONDS
Principal Amount; Designation ..........................................................................................12
Terms of the Series 2003-A Bonds ..................................................................................,12
Redemption.. ...... ..............,..,..,.............................,....,... .................................................... 13
Form of Bonds ,...........................,.....,...........................................,.."..,..".........................16
Execution of Bonds..,................... ...........,..,..,.............................................. ..........,........... 16
Transfer of Bonds ................................................,..,..............................................,......".., 16
Exchange of Bonds .............,.....,..,.."..............................,..,..,..,............................,...,.......17
Bond Register. .......... ...... .....,..,.......... ............... ...,.....,..,..,..,........................... ..., ...,........... 17
Temporary Bonds....... ...............,..,................... ...,.....,..,..,.....,........................ .......,...,....... 17
Bonds Mutilated, Lost, Destroyed or Stolen .....................................................................,17
Limited Obligation,..,..,............ .........,..,................... ...............,.....,.."..,......,.......................18
No Acceleration,..,.................. ......,..,..,................... .......... .....,..,.., ............................. .... ....18
Book-Entry System.. ...........................,..,.., ......................... ......,..,..,......,...........................18
Issuance of Parity Bonds ......................................................,......,...................................,.19
ARTICLE III
ISSUANCE OF BONDS
Issuance and Delivery of Series 2003-A Bonds ................................................................22
Pledge of Special Tax Revenues ......................................................................................22
Validity of Bonds. ...............,..,.......... ..............,......,..,..,......................,....."..,.... ........... ......22
ARTICLE IV
FUNDS AND ACCOUNTS
Application of Proceeds of Sale of Series 2003-A Bonds and Other Moneys ...................23
Improvement Fund ...........,..,...............................,..,......................... ...,..,......".................. 23
Costs of Issuance Fund.............. .........,............. ..................... ........., ................................. 25
Reserve Fund,.., ...............,..,..,..,.."..,..,.....,..,......,..,..,..,..,..,.., ......, ................,........ ......"... 25
Bond Fund ... ...................................................... ............................... .................................27
Special Tax Fund........,..............,..,......,..,..,...... ...............,..,..,.... ................ ........ ..., ...,......,28
Administrative Expense Fund........... ...,...........................................,.."... ..........................29
Refunding Fund,..........................."........................................ ......,....................................29
ARTICLE V
OTHER COVENANTS OF THE AUTHORITY
Punctual Payment.......... .". ." ." ." '" '" .... ... ... ... ... .... ... ." ." ." '" '" '" "" ... .... ... .... ... .". .", .", "" '" 31
Limited Obligation........ ...... ............................................ ......... ...........................................31
Extension of Time for Payment ..............,..,..,..,..,......................................,......".............., 31
Against Encumbrances.. ....., .".., "" '" ,., ... .... ... ... ... ...... ....".".., "" ." "" ." "" .., .... .... .... ... ..... ... 31
Books and Records............, ................................ ................ .............................................. 31
Protection of Security and Rights of Owners.....................................................................32
Compliance with Law.. .....,......................................... ...... ,................................., ...,...,......,32
Collection of Special Tax Revenues.........,........................................................................32
-i-
Section 5.09,
Section 5.10,
Section 5,11.
Section 5,12,
Section 5.13.
Section 5.14.
Section 5,15.
Section 5.16.
Section 5,17.
Section 5,18,
Section 5.19,
Covenant to Foreclose........... .......................................................,.........."......, ....,.... ....,.. 33
Further Assurances,.....,.....,..,....................................... ............................................ ....,..,33
Private Activity Bond Limitations......,............,..,......,...... ............................................ ........ 33
Federal Guarantee Prohibition ............................. ............... ................. .......,..,....,.."..,....,,34
Rebate Requirement..... ............ ......,...... ......,..,..,..,........................................ ................... 34
No Arbitrage ........................... ...,........,......................... ....................... .......................... ..., 34
Yield of the Bonds,..,........................................,........,..,..,.., ............................................... 34
Maintenance of Tax-Exemption, '" "" ." '" ... ....... ... ... ... ... ... ... .......... .,. .... .,. .,..", .", .", "" ." "",34
Continuing Disclosure to Owners ................,......,..,..,......................................................,.34
Reduction of Special Taxes,..,... ...............................,.....,..,..,..,......, ..................................35
Limits on Special Tax Waivers and Bond Tenders ...........................................................35
ARTICLE VI
INVESTMENTS, DISPOSITION OF INVESTMENT PROCEEDS, LIABILITY OF THE
AUTHORITY
Section 6.01,
Section 6,02,
Section 6,03,
Section 6,04,
Section 7,01,
Section 7,02,
Section 7.03,
Section 7,04,
Section 7.05,
Section 8.01 .
Section 8.02.
Section 8.03,
Section 8.04.
Section 8,05,
Section 8,06,
Section 8.07.
Section 9.01,
Section 9.02.
Section 9.03.
Section 9.04,
Section 9.05.
Section 9,06.
Section 9.07,
Section 9.08.
Section 9.09.
Section 9,10.
Section 9.11.
Deposit and Investment of Moneys in Funds ....................................................................36
Limited Obligation ...... ............ .........,..,.......... ........................... .........".....,......................... 37
Liability of Authority................ ....."..,..,..,............................ ........,......,....... ......................... 37
Employment of Agents by Authority,.....,..,...........................................,.............................38
ARTICLE VII
THE FISCAL AGENT
Appointment of Fiscal Agent. .........,..,......................... ....................."................................ 39
Liability of Fiscal Agent....., ......,..,..,... .....................,..,..,..,..,..,.................... ......., ...,........... 39
Information........"""".......................,.."."""............................".,..",."""""".",.......... ......41
Notice to Fiscal Agent........... ...... ...,..,..,..,... ..............................,..,....... .......................... .... 41
Compensation, Indemnification.. ...............,..,.......... ..................................,.......................41
ARTICLE VIII
MODIFICATION OR AMENDMENT OF THIS AGREEMENT
Amendments Permitted,..,...........................................,..,..,..,................................... ...,.... ,42
Owners' Meetings......,.., ............................. .....,.....,..,..,..,................... ...,...........................42
Procedure for Amendment with Written Consent of Owners ............................................42
Disqualified Bonds.................,..,......................... .........,.....,..,........................... ..., ...,....... ..43
Effect of Supplemental Agreement.................. ....... ...... .....,.....,..,..................... ...............,.43
Endorsement or Replacement of Bonds Issued After Amendments.................................44
Amendatory Endorsement of Bonds.... ........,........,.., ,..... .................................,.."..,........ ..44
ARTICLE IX
MISCELLANEOUS
Benefits of Agreement Limited to Parties ..........................................................................45
Successor is Deemed Included in All References to Predecessor ...................................45
Discharge of Agreement.,. ."", ." ". ... ....... ... ... ... ... ... ... .,.." """ "" .",., ....... .... ... .... .... ... .... .... ..45
Execution of Documents and Proof of Ownership by Owners ..........................................46
Waiver of Personal Liability .........,...........................................,.....,...................................46
Notices to and Demands on Authority and Fiscal Agent ...................................................46
State Reporting Requirements .............................,..".....................................................,..47
Partial Invalidity,......................................"..".".,..,.................................................",.".."" 48
Unclaimed Moneys....... ...... ...............,..,......,........................ .............,..,..".."..,.................48
Applicable Law" ",... .... ...... ... ... .,. ." ." """"" '" ". ,., ... ... ....... ...... ...... ... .". ." .", '" "" "" "" "" '" ,,48
Conflict with Act............ ......................... ......,.................................................... ..., ...".."....48
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Section 9.12.
Section 9.13.
Section 9.14.
Conclusive Evidence of Regularity ....................................................................................48
Payment on Business Day.................................................................................................49
Counterparts.."""."""".,.,.....,...................................................................................".,. ,.,49
EXHIBIT A - FORM OF BOND
-iii-
FISCAL AGENT AGREEMENT
Temecula Public Financing Authority
Community Facilities District No. 03-1
(Crowne Hill)
Special Tax Bonds
THIS FISCAL AGENT AGREEMENT (the "Agreement"), dated as of June 1, 2003, is by
and between the Temecula Public Financing Authority, a joint exercise of powers authority
organized and existing under and by virtue of the laws of the State of California (the" Authority")
for and on behalf of the Temecula Public Financing Authority Community Facilities District No,
03-1 (Crowne Hill) (the "District"), and U,S, Bank National Association, a national banking
association duly organized and existing under the laws of the United States of America, as
fiscal agent (the "Fiscal Agent"),
RECITALS:
WHEREAS, the Board of Directors of the Authority has formed the District under the
provisions of the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311, et
seq, of the California Government Code) (the "Act") and Resolution No, TPFA 03-05 of the
Board of Directors of the Authority adopted on March 25, 2003 (the "Resolution of Formation");
WHEREAS, the Board of Directors of the Authority, as the legislative body for the
District, is authorized under the Act to levy special taxes to pay for the costs of the District and
to authorize the issuance of bonds secured by said special taxes under the Act;
WHEREAS, under the provisions of the Act, on June 24, 2003 the Board of Directors of
the Authority adopted its Resolution No. TPFA 03-_ (the "Resolution"), which resolution (i)
authorized the issuance and sale of the Temecula Public Financing Authority Community
Facilities District No. 03-1 (Crowne Hill) Special Tax Bonds (the "Bonds") in an aggregate
principal amount of not to exceed $25,000,000, (ii) authorized the issuance and sale of a first
series of the Bonds designated as "Series 2003-A" in the aggregate principal amount of not to
exceed $ , and (iii) authorized the execution hereof;
WHEREAS, it is in the public interest and for the benefit of the Authority, the District and
the owners of the Bonds that the Authority enter into this Agreement to provide for the issuance
of the Bonds, the disbursement of proceeds of the Bonds, the disposition of the special taxes
securing the Bonds and the administration and payment of the Bonds; and
WHEREAS, the Authority has determined that all things necessary to cause the Bonds,
when executed by the Authority for the District and issued as in the Act, the Resolution and this
Agreement provided, to be legal, valid and binding and special obligations of the Authority for
the District in accordance with their terms, and all things necessary to cause the creation,
authorization, execution and delivery of this Agreement and the creation, authorization,
execution and issuance of the Bonds, subject to the terms hereof, have in all respects been
duly authorized.
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AGREEMENT:
NOW, THEREFORE, in consideration of the covenants and provisions herein set forth
and for other valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the parties hereto do hereby agree as follows:
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ARTICLE I
STATUTORY AUTHORITY AND DEFINITIONS
Section 1.01, Authority for this Aareement. This Agreement is entered into pursuant to
the provisions of the Act and the Resolution,
Section 1,02, Aareement for Benefit of Owners of the Bonds, The provIsions,
covenants and agreements herein set forth to be performed by or on behalf of the Authority
shall be for the equal benefit, protection and security of the Owners of the Bonds, All of the
Bonds, without regard to the time or times of their issuance or maturity, shall be of equal rank
without preference, priority or distinction of any of the Bonds over any other thereof, except as
expressly provided in or permitted by this Agreement. The Fiscal Agent may become the
Owner of any of the Bonds in its own or any other capacity with the same rights it would have if
it were not Fiscal Agent.
Section 1,03, Definitions, Unless the context otherwise requires, the terms defined in
this Section 1,03 shall, for all purposes of this Agreement, of any Supplemental Agreement, and
of any certificate, opinion or other document herein mentioned, have the meanings herein
specified, All references herein to "Articles," "Sections" and other subdivisions are to the
corresponding Articles, Sections or subdivisions of this Agreement, and the words "herein,"
"hereof," "hereunder" and other words of similar import refer to this Agreement as a whole and
not to any particular Article, Section or subdivision hereof,
"Acauisition Account" means the account by that name established by Section 4,02(A)
within the Improvement Fund,
"Acauisition Aareement" means the Acquisition Agreement, dated as of March 1.2003,
between the Authority and Lennar, as originally executed and as it may be amended from time
to time.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being
Sections 53311 et seq, of the California Government Code,
"Administrative Expenses" means costs directly related to the administration of the
District consisting of the costs of computing the Special Taxes and preparing the annual
Special Tax collection schedules (whether by the Treasurer or designee thereof or both) and
the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of
remitting the Special Taxes to the Fiscal Agent; fees and costs of the Fiscal Agent (including its
legal counsel) in the discharge of the duties required of it under this Agreement; the costs of the
Authority, the City or any designee of either the Authority or the City of complying with the
disclosure provisions of the Act, the Continuing Disclosure Agreement and this Agreement,
including those related to public inquiries regarding the Special Tax and disclosures to
Bondowners and the Original Purchaser; the costs of the Authority, the City or any designee of
either the Authority or the City related to an appeal of the Special Tax; any amounts required to
be rebated to the federal government in order for the Authority to comply with Section 5,13; an
allocable share of the salaries of the City staff directly related to the foregoing and a
proportionate amount of City general administrative overhead related thereto, Administrative
Expenses shall also include amounts advanced by the Authority or the City for any
administrative purpose of the District, including costs related to prepayments of Special Taxes,
recordings related to such prepayments and satisfaction of Special Taxes, amounts advanced
to ensure compliance with Section 5.13, administrative costs related to the administration of any
-3-
joint community facilities agreement regarding the District, and the costs of commencing and
pursuing foreclosure of delinquent Special Taxes,
"Administrative Expense Fund" means the fund by that name established by Section
4,07(A) hereof,
"Aqreement" means this Fiscal Agent Agreement, as it may be amended or
supplemented from time to time by any Supplemental Agreement adopted pursuant to the
provisions hereof,
"Annual Debt Service" means, for each Bond Year, the sum of (i) the interest due on the
Outstanding Bonds in such Bond Year, assuming that the Outstanding Bonds are retired as
scheduled (including by reason of the provisions of Section 2,03(A)(ii) providing for mandatory
sinking payments), and (Ii) the principal amount of the Outstanding Bonds due in such Bond
Year (including any mandatory sinking payment due in such Bond Year pursuant to Section
2,03(A)(ii)).
"Auditor" means the auditor/controller of the County,
"Authoritv" means the Temecula Public Financing Authority and any successor thereto,
"Authoritv Attornev" means any attorney or firm of attorneys employed by the Authority
or the City in the capacity of general counsel to the Authority,
"Authorized Officer" means the Chairman, Executive Director, Treasurer, Secretary or
any other officer or employee authorized by the Board of Directors of the Authority or by an
Authorized Officer to undertake the action referenced in this Agreement as required to be
undertaken by an Authorized Officer.
"Bond Counsel" means (i) Quint & Thimmig LLP, or (ii) any other attorney or firm of
attorneys acceptable to the Authority and nationally recognized for expertise in rendering
opinions as to the legality and tax-exempt status of securities issued by public entities,
"Bond Fund" means the fund by that name established by Section 4,05(A) hereof,
"Bond Reqister" means the books for the registration and transfer of Bonds maintained
by the Fiscal Agent under Section 2,08 hereof.
"Bond Year" means the one-year period beginning on September 2nd in each year and
ending on September 1st in the following year, except that the first Bond Year shall begin on
the Closing Date and end on September 1, 2003,
"Bonds" means the Series 2003-A Bonds, and, if the context requires, any Parity Bonds,
at any time Outstanding under this Agreement or any Supplemental Agreement.
"Business Day" means any day other than (i) a Saturday or a Sunday, or (ii) a day on
which banking institutions in the state in which the Fiscal Agent has its principal corporate trust
office are authorized or obligated by law or executive order to be closed.
"CD lAC" means the California Debt and Investment Advisory Commission of the office
of the State Treasurer of the State of California or any successor agency or bureau thereto,
-4-
"Caltrans Account" means the account by that name established by Section 4,02(A)
within the Improvement Fund,
"Capitalized Interest Account" means the account by that name established within the
Bond Fund by Section 4,05(A) hereof,
"Citv" means the City of Temecula, California,
"Citv Account" means the account by that name established by Section 4,02(A) within
the Improvement Fund,
"Closina Date" means July _' 2003, being the date upon which there is a physical
delivery of the Series 2003-A Bonds in exchange for the amount representing the purchase
price of the Series 2003-A Bonds by the Original Purchaser,
"Code" means the Internal Revenue Code of 1986 as in effect on the date of issuance of
the Bonds or (except as otherwise referenced herein) as it may be amended to apply to
obligations issued on the date of issuance of the Bonds, together with applicable proposed,
temporary and final regulations promulgated, and applicable official public guidance published,
under the Code,
"Continuina Disclosure Aareement" shall mean that certain Continuing Disclosure
Agreement executed by the Authority and the Fiscal Agent on the Closing Date, as originally
executed and as it may be amended from time to time in accordance with the terms thereof,
"Costs of Issuance" means items of expense payable or reimbursable directly or
indirectly by the Authority or the City and related to the authorization, sale and issuance of the
Bonds, which items of expense shall include, but not be limited to, printing costs, costs of
reproducing and binding documents, closing costs, filing and recording fees, initial fees and
charges of the Fiscal Agent including its first annual administration fee, expenses incurred by
the City or the Authority in connection with the issuance of the Bonds and the establishment of
the District, special tax consultant fees and expenses, preliminary engineering fees and
expenses, Bond (underwriter's) discount, legal fees and charges, including bond counsel,
disclosure counsel, financial consultants' fees, charges for execution, transportation and
safekeeping of the Bonds, landowner expenses related to the District formation, City costs
related to the District formation, and other costs, charges and fees in connection with the
foregoing,
"Costs of Issuance Fund" means the fund by that name established by Section 4,03(A)
hereof,
"Countv" means the County of Riverside, California,
"Debt Service" means the scheduled amount of interest and amortization of principal
payable by reason of Section 2,03(A)(ii) on the Series 2003-A Bonds and the scheduled
amount of interest and amortization of principal payable on any Parity Bonds during the period
of computation, excluding amounts scheduled during such period which relate to principal which
has been retired before the beginning of such period,
"Depositorv" means (a) initially, DTC, and (b) any other Securities Depository acting as
Depository pursuant to Section 2.13.
-5-
"District" means the Temecula Public Financing Authority Community Facilities District
No, 03-1 (Crowne Hill), formed by the Authority under the Act and the Resolution of Formation,
"District Value" means the market value, as of the date of the appraisal described below
and/or the date of the most recent County real properly tax roll, as applicable, of all parcels of
real properly in the District subject to the levy of the Special Taxes and not delinquent in the
payment of any Special Taxes then due and owing, including with respect to such
nondelinquent parcels the value of the then existing improvements and any facilities to be
constructed or acquired with any amounts then on deposit in the Improvement Fund and with
the proceeds of any proposed series of Parity Bonds, as determined with respect to any parcel
or group of parcels by reference to (i) an appraisal performed within six (6) months of the date
of issuance of any proposed Parity Bonds by an MAl appraiser (the "Appraiser") selected by the
Authority, or (ii), in the alternative, the assessed value of all such nondelinquent parcels and
improvements thereon as shown on the then current County real property tax roll available to
the Treasurer, It is expressly acknowledged that, in determining the District Value, the Authority
may rely on an appraisal to determine the value of some or all of the parcels in the District
and/or the most recent County real properly tax roll as to the value of some or all of the parcels
in the District. Neither the Authority nor the Treasurer shall be liable to the Owners, the Original
Purchaser or any other person or entity in respect of any appraisal provided for purposes of this
definition or by reason of any exercise of discretion made by any Appraiser pursuant to this
definition,
"EMWD" means the Eastern Municipal Water District.
"EMWD Account" means the account by that name established by Section 4,02(A)
within the Improvement Fund,
"Fair Market Value" means the price at which a willing buyer would purchase the
investment from a willing seller in a bona fide, arm's length transaction (determined as of the
date the contract to purchase or sell the investment becomes binding) if the investment is
traded on an established securities market (within the meaning of section 1273 of the Code)
and, otherwise, the term "Fair Market Value" means the acquisition price in a bona fide arm's
length transaction (as referenced above) if (i) the investment is a certificate of deposit that is
acquired in accordance with applicable regulations under the Code, (i1) the investment is an
agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically
negotiated interest rate (for example, a guaranteed investment contract, a forward supply
contract or other investment agreement) that is acquired in accordance with applicable
regulations under the Code, (Iii) the investment is a United States Treasury Security--State and
Local Government Series that is acquired in accordance with applicable regulations of the
United States Bureau of Public Debt, or (iv) the investment is the Local Agency Investment
Fund of the State of California but only if at all times during which the investment is held its yield
is reasonably expected to be equal to or greater than the yield on a reasonably comparable
direct obligation of the United States.
"Federal Securities" means any of the following which are non-callable and which at the
time of investment are legal investments under the laws of the State of California for funds held
by the Fiscal Agent: (i) direct general obligations of the United States of America (including
obligations issued or held in book entry form on the books of the United States Department of
the Treasury) and obligations, the payment of principal of and interest on which are directly or
indirectly guaranteed by the United States of America, including, without limitation, such of the
foregoing which are commonly referred to as "stripped" obligations and coupons; or (i1) any of
the following obligations of the following agencies of the United States of America: (a) direct
-6-
obligations of the Export-Import Bank, (b) certificates of beneficial ownership issued by the
Farmers Home Administration, (c) participation certificates issued by the General Services
Administration, (d) mortgage-backed bonds or pass-through obligations issued and guaranteed
by the Government National Mortgage Association, (e) project notes issued by the United
States Department of Housing and Urban Development, and (f) public housing notes and bonds
guaranteed by the United States of America,
"Fiscal Aaent" means the Fiscal Agent appointed by the Authority and acting as an
independent fiscal agent with the duties and powers herein provided, its successors and
assigns, and any other corporation or association which may at any time be substituted in its
place, as provided in Section 7,01,
"Fiscal Year" means the twelve-month period extending from July 1 in a calendar year to
June 30 of the succeeding year, both dates inclusive.
"Improvement Fund" means the fund by that name created by and held by the Fiscal
Agent pursuant to Section 4,02(A) hereof,
"Independent Financial Consultant" means any consultant or firm of such consultants
appointed by the Authority, the City or the Treasurer, and who, or each of whom: (i) has
experience in matters relating to the issuance and/or administration of bonds under the Act; (ii)
is in fact independent and not under the domination of the Authority; (Iii) does not have any
substantial interest, direct or indirect, with or in the Authority, or any owner of real property in
the District, or any real property in the District; and (iv) is not connected with the City or the
Authority as an officer or employee of the City or the Authority, but who may be regularly
retained to make reports to the City or the Authority,
"Information Services" means Financial Information, Inc.'s "Daily Called Bond Service",
30 Montgomery Street, 10th Floor, Jersey City, New Jersey 07302, Attention: Editor; Kenny
Information Services' "Called Bond Service", 65 Broadway, 16th Floor, New York, New York
10006; Moody's Investors Service "Municipal and Government", 99 Church Street, New York,
New York 10007, Attention: Municipal News Reports; Standard & Poor's Corporation "Called
Bond Record", 25 Broadway, 3rd Floor, New York, New York 10004; and, in accordance with
then current guidelines of the Securities and Exchange Commission, such other addresses
and/or such services providing information with respect to called bonds as the Authority may
designate in an Officer's Certificate delivered to the Fiscal Agent.
"Interest Payment Dates" means March 1 and September 1 of each year, commencing
September 1, 2003,
"Joint Community Facilities Aareement EMWD" means the Joint Community Facilities
Agreement, dated as of February 1, 2003, among the Authority, EMWD and Lennar.
"Joint Community Facilities Aareement - RCWD" means the Joint Community Facilities
Agreement, dated as of March 1,2003, among the Authority, RCWD and Lennar,
"Lennar" means Lennar Homes of California, Inc., a California corporation,
"Maximum Annual Debt Service" means the largest Annual Debt Service for any Bond
Year after the calculation is made through the final maturity date of any Outstanding Bonds,
"Moodv's" means Moody's Investors Service, and any successor thereto,
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"Officer's Certificate" means a written certificate of the Authority signed by an Authorized
Officer of the Authority,
"Ordinance" means any ordinance of the Authority levying the Special Taxes,
"Oriainal Purchaser" means Stone & Youngberg LLC, the first purchaser of the Series
2003-A Bonds from the Authority,
"Outstandina," when used as of any particular time with reference to Bonds, means
(subject to the provisions of Section 8,04) all Bonds except: (i) Bonds theretofore canceled by
the Fiscal Agent or surrendered to the Fiscal Agent for cancellation; (i1) Bonds paid or deemed
to have been paid within the meaning of Section 9,03; and (iii) Bonds in lieu of or in substitution
for which other Bonds shall have been authorized, executed, issued and delivered by the
Authority pursuant to this Agreement or any Supplemental Agreement.
"Owner" or "Bondowner" means any person who shall be the registered owner of any
Outstanding Bond,
"Paritv Bonds" means bonds issued by the Authority for the District on a parity with any
then Outstanding Bonds pursuant to Section 2,14 hereof,
"Particioatina Underwriter" shall have the meaning ascribed thereto in the Continuing
Disclosure Agreement.
"Permitted Investments" means any of the following, but only to the extent that the same
are acquired at Fair Market Value:
(a) Federal Securities,
(b) Time certificates of deposit or negotiable certificates of deposit issued by a
state or nationally chartered bank (including the Fiscal Agent and its affiliates) or trust
company, or a state or federal savings and loan association; provided, that the
certificates of deposit shall be one or more of the following: continuously and fully
insured by the Federal Deposit Insurance Corporation, and/or continuously and fully
secured by securities described in subdivision (a) of this definition of Permitted
Investments which shall have a market value, as determined on a marked-to-market
basis calculated at least weekly, and exclusive of accrued interest, of not less than 102
percent of the principal amount of the certificates on deposit.
(c) Commercial paper of "prime" quality of the highest ranking or of the highest
letter and numerical rating as provided by either Moody's or S&P, which commercial
paper is limited to issuing corporations that are organized and operating within the
United States of America and that have total assets in excess of five hundred million
dollars ($500,000,000) and that have an "A" or higher rating for the issuer's debentures,
other than commercial paper, by either Moody's or S&P, provided that purchases of
eligible commercial paper may not exceed 180 days' maturity nor represent more than
10 percent of the outstanding commercial paper of an issuing corporation,
(d) A repurchase agreement with a state or nationally charted bank or trust
company or a national banking association or government bond dealer reporting to,
trading with, and recognized as a primary dealer by the Federal Reserve Bank of New
-8-
York, provided that all of the following conditions are satisfied: (1) the agreement is
secured by anyone or more of the securities described in subdivision (a) of this
definition of Permitted Investments, (2) the underlying securities are required by the
repurchase agreement to be held by a bank, trust company, or primary dealer having a
combined capital and surplus of at least one hundred million dollars ($100,000,000) and
which is independent of the issuer of the repurchase agreement, and (3) the underlying
securities are maintained at a market value, as determined on a marked-to-market basis
calculated at least weekly, of not less than 103 percent of the amount so invested,
(e) An investment agreement or guaranteed investment contract with, or
guaranteed by, a financial institution (not including any insurance company) the long-
term unsecured obligations of which are rated "AA" or better by Moody's and S&P at the
time of initial investment. The investment agreement shall be subject to a downgrade
provision with at least the following requirements: (1) the agreement shall provide that
within five Business Days after the financial institution's long-term unsecured credit
rating has been withdrawn, suspended, other than because of general withdrawal or
suspension by Moody's or S&P from the practice of rating that debt, or reduced below
"AA-" by S&P or below "Aa3" by Moody's (these events are called "rating downgrades")
the financial institution shall give notice to the Fiscal Agent and, within the five-day
period, and for as long as the rating downgrade is in effect, shall deliver in the name of
the Fiscal Agent to the Fiscal Agent federal securities allowed as investments under
subdivision (a) of this definition of Permitted Investments with aggregate current market
value equal to at least 105 percent of the principal amount of the investment agreement
invested with the financial institution at that time, and shall deliver additional allowed
federal securities as needed to maintain an aggregate current market value equal to at
least 1 05 percent of the principal amount of the investment agreement within three days
after each evaluation date, which shall be at least weekly, and (2) the agreement shall
provide that, if the financial institution's long-term unsecured credit rating is reduced
below "A3" by Moody's or below "A-" by S&P, the Fiscal Agent may, upon not more than
five Business Days' written notice to the financial institution, withdraw the investment
agreement, with accrued but unpaid interest thereon to the date, and terminate the
agreement.
(f) The Local Agency Investment Account of the State Treasurer of the State of
California as permitted by the State Treasurer pursuant to Section 16429,1 of the
California Government Code,
(g) Investments in a money market account (including any accounts of the Fiscal
Agent or its affiliates) rated in the highest rating category by Moody's or S&P,
"Princioal Office" means the principal corporate trust office of the Fiscal Agent set forth
in Section 9.06, except for the purpose of maintenance of the registration books and
presentation of Bonds for payment, transfer or exchange, such term shall mean the office at
which the Fiscal Agent conducts its corporate agency business, or such other or additional
offices as may be designated by the Fiscal Agent.
"Proiect" means the facilities more particularly described in the Resolution of Formation.
"Qualified Reserve Fund Credit Instrument" means an irrevocable standby or direct-pay
letter of credit or surety bond issued by a commercial bank or insurance company and
deposited with the Fiscal Agent pursuant to Section 4.04(H), provided that all of the following
requirements are met: (a) the long-term credit rating or claims paying ability of such bank or
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insurance company is in one of the two highest rating categories by S&P and Moody's; (b) such
letter of credit or surety bond has a term of at least twelve (12) months; (c) such letter of credit
or surety bond has a stated amount at least equal to the portion of the Reserve Requirement
with respect to which funds are proposed to be released pursuant to Section 4,04(H); and (d)
the Fiscal Agent is authorized pursuant to the terms of such letter of credit or surety bond to
draw thereunder for the purpose of making payments required pursuant to Section 4,04,
"RCWD" means the Rancho California Water District.
"RCWD Account" means the account by that name established by Section 4,02(A)
within the Improvement Fund,
"Record Date" means the fifteenth day of the month next preceding the month of the
applicable Interest Payment Date, whether or not such day is a Business Day,
"Refundina Bonds" means bonds issued by the Authority for the District the net
proceeds of which are used to refund all or a portion of the then Outstanding Bonds; provided
that the debt service on the Refunding Bonds in any Bond Year is not in excess of the debt
service on the Bonds being refunded and the final maturity of the Refunding Bonds is not later
than the final maturity of the Bonds being refunded.
"Refundina Fund" means the fund by that name established pursuant to Section 4,08(A),
"Reserve Fund" means the fund by that name established pursuant to Section 4,04(A)
hereof,
"Reserve Reauirement" means, as of any date of calculation an amount equal to the
least of (i) the then Maximum Annual Debt Service, (ii) one hundred twenty-five percent (125%)
of the then average Annual Debt Service, or (iii) ten percent (10%) of the then Outstanding
principal amount of the Bonds, The Reserve Requirement as of the Closing Date is
$
"Resolution" means Resolution No. TPFA 03-_, adopted by the Board of Directors of
the Authority on June 24, 2003,
"Resolution of Formation" means Resolution No, TPFA 03-05, adopted by the Board of
Directors of the Authority on March 25, 2003.
"Resolution of Intention" means Resolution No. TPFA 03-_, adopted by the Board of
Directors of the Authority on January 28, 2003,
"S&P" means Standard & Poor's Ratings Service, a division of McGraw-Hili, and any
successor thereto.
"Securities Depositories" means The Depository Trust Company, 55 Water Street, 50th
Floor, New York, New York 10041-0099, Attention: Call Notification Department, Fax (212) 855-
7232; and, in accordance with then current guidelines of the Securities and Exchange
Commission, such other addresses and/or such other securities depositories as the Authority
may designate in an Officer's Certificate delivered to the Fiscal Agent.
"Series 2003-A Bonds" means the Bonds so designated and authorized to be issued
under Section 2,01 hereof,
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"Special Tax Fund" means the fund by that name established by Section 4,06(A) hereof,
"Special Tax Prepavments" means the proceeds of any Special Tax prepayments
received by the Authority, as calculated pursuant to the Rate and Method of Apportionment of
the Special Taxes for the District, less any administrative fees or penalties collected as part of
any such prepayment.
"Special Tax Prepavments Account" means the account by that name established within
the Bond Fund by Section 4,05(A) hereof,
"Special Tax Revenues" means the proceeds of the Special Taxes received by the
Authority, including any scheduled payments and any prepayments thereof, interest thereon
and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of
the Special Taxes to the amount of said lien and interest thereon, "Special Tax Revenues"
does not include any penalties collected in connection with delinquent Special Taxes,
"Special Taxes" means the special taxes levied within the District pursuant to the Act,
the Ordinance and this Agreement.
"Supplemental Aareement" means an agreement the execution of which is authorized by
a resolution which has been duly adopted by the Authority under the Act and which agreement
is amendatory of or supplemental to this Agreement, but only if and to the extent that such
agreement is specifically authorized hereunder.
"Tax Consultant" means Albert A. Webb Associates or another independent financial or
tax consultant retained by the Authority or the City for the purpose of computing the Special
Taxes.
"Treasurer" means the Treasurer of the Authority or such other officer or employee of
the Authority performing the functions of the chief financial officer of the Authority,
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ARTICLE II
THE BONDS
Section 2,01, Principal Amount: Desianation, Bonds in the aggregate principal amount
of Twenty-Five Million Dollars ($25,000,000) are hereby authorized to be issued by the Authority
for the District under and subject to the terms of the Resolution and this Agreement, the Act
and other applicable laws of the State of California, The Series 2003-A Bonds shall be
designated as the "Temecula Public Financing Authority Community Facilities District No, 03-1
(Crowne Hill) Special Tax Bonds, Series 2003-A," and shall be in the initial principal amount of
$
Section 2,02, Terms of the Series 2003-A Bonds,
(A) Form: Denominations. The Series 2003-A Bonds shall be issued as fully registered
Bonds without coupons in the denomination of $5,000 or any integral multiple in excess thereof,
Date,
(B) Date of Series 2003-A Bonds, The Series 2003-A Bonds shall be dated the Closing
(C) CUSIP Identification Numbers, "CUSIP" identification numbers shall be imprinted on
the Bonds, but such numbers shall not constitute a part of the contract evidenced by the Bonds
and any error or omission with respect thereto shall not constitute cause for refusal of any
purchaser to accept delivery of and pay for the Bonds, In addition, failure on the part of the
Authority or the Fiscal Agent to use such CUSIP numbers in any notice to Owners shall not
constitute an event of default or any violation of the Authority's contract with such Owners and
shall not impair the effectiveness of any such notice,
(D) Maturities, Interest Rates, The Series 2003-A Bonds shall mature and become
payable on September 1 in each of the years, and shall bear interest at the rates per annum as
follows:
Maturity Date
(September 1)
Principal Amount
[to come]
Interest Rate
(E) Interest. The Bonds shall bear interest at the rates set forth above payable on the
Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day
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year composed of twelve 30-day months, Each Bond shall bear interest from the Interest
Payment Date next preceding the date of authentication thereof unless (i) it is authenticated on
an Interest Payment Date, in which event it shall bear interest from such date of authentication,
or (i1) it is authenticated prior to an Interest Payment Date and after the close of business on the
Record Date preceding such Interest Payment Date, in which event it shall bear interest from
such Interest Payment Date, or (iil) it is authenticated prior to the Record Date preceding the
first Interest Payment Date, in which event it shall bear interest from the Bond Date; provided,
however, that if at the time of authentication of a Bond, interest is in default thereon, such Bond
shall bear interest from the Interest Payment Date to which interest has previously been paid or
made available for payment thereon,
(F) Method of Pavment. Interest on the Bonds (including the final interest payment
upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed on the
Interest Payment Dates by first class mail to the registered Owner thereof at such registered
Owner's address as it appears on the registration books maintained by the Fiscal Agent at the
close of business on the Record Date preceding the Interest Payment Date, or by wire transfer
(i) to the Depository (so long as the Bonds are in book-entry form pursuant to Section 2,13), or
(ii) to an account within the United States made on such Interest Payment Date upon written
instructions of any Owner of $1,000,000 or more in aggregate principal amount of Bonds
received before the applicable Record Date, which instructions shall continue in effect until
revoked in writing, or until such Bonds are transferred to a new Owner. The principal of the
Bonds and any premium on the Bonds are payable by check in lawful money of the United
States of America upon surrender of the Bonds at the Principal Office of the Fiscal Agent. All
Bonds paid by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent.
The Fiscal Agent shall destroy the canceled Bonds and issue a certificate of destruction thereof
to the Authority upon the Authority's request.
Section 2.03. Redemption,
(A) Redemption Dates,
(i) Optional Redemption, The Series 2003-A Bonds maturing on and after
September 1, 2013 are subject to optional redemption prior to their stated maturity on
any Interest Payment Date on or after September 1, 2012, as a whole or in part, among
maturities so as to maintain substantially level debt service and by lot within a maturity,
at a redemption price (expressed as a percentage of the principal amount of the Series
2003-A Bonds to be redeemed), as set forth below, together with accrued interest
thereon to the date fixed for redemption:
Redemotion Dates
September 1, 2012 and March 1, 2013
September 1, 2013 and any Interest Payment
Date thereafter
Redemotion Prices
102%
100
(ii) Mandatory Sinking Payment Redemption. The Series 2003-A Bonds
maturing on September 1, _' are subject to mandatory sinking payment redemption
in part on September 1, _' and on each September 1 thereafter to maturity, by lot, at
a redemption price equal to the principal amount thereof to be redeemed, together with
accrued interest to the date fixed for redemption, without premium, from sinking
payments as follows:
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Redemption Date
(September 1)
Sinkinc Pavments
[to come]
The Series 2003-A Bonds maturing on September 1, _' are subject to
mandatory sinking payment redemption in part on September 1, _' and on each
September 1 thereafter to maturity, by lot, at a redemption price equal to the principal
amount thereof to be redeemed, together with accrued interest to the date fixed for
redemption, without premium, from sinking payments as follows:
Redemption Date
(September 1)
Sinkinc Pavments
[to come]
The amounts in the foregoing tables shall be reduced to the extent practicable so
as to maintain level debt service on the Series 2003-A Bonds, as a result of any prior
partial redemption of the Series 2003-A Bonds pursuant to Section 2,03(A)(i) above or
Section 2,03(A)(iii) below, as specified in writing by the Treasurer to the Fiscal Agent.
(iii) Redemption From Special Tax Prepayments, Special Tax Prepayments
and any corresponding transfers from the Reserve Fund pursuant to Section 4,05(B)(ii)
and Section 4,04(F), respectively, shall be used to redeem Series 2003-A Bonds on the
next Interest Payment Date for which notice of redemption can timely be given under
Section 2,03(D), by lot and allocated among maturities of the Series 2003-A Bonds so
as to maintain substantially level debt service on the Series 2003-A Bonds, at a
redemption price (expressed as a percentage at the principal amount of the Bonds to be
redeemed), as set forth below, together with accrued interest to the date fixed for
redemption:
Redemption Dates
Any Interest Payment Date from September 1,
2003 to and including March 1, 2013
September 1, 2013 and any Interest Payment
Date thereafter
Redemption Prices
102%
100
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(B) Notice to Fiscal Aaent. The Authority shall give the Fiscal Agent written notice of its
intention to redeem Series 2003-A Bonds pursuant to subsection (A)(i) or (A)(iii) not less than
forty-five (45) days prior to the applicable redemption date, or such lesser number of days as
shall be consented to by the Fiscal Agent.
(C) Purchase of Bonds in Lieu of Redemption, In lieu of redemption under Section
2.03(A), moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for
purchase of Outstanding Series 2003-A Bonds, upon the filing with the Fiscal Agent of an
Officer's Certificate requesting such purchase, at public or private sale as and when, and at
such prices (including brokerage and other charges) as such Officer's Certificate may provide,
but in no event may Bonds be purchased at a price in excess of the principal amount thereof,
plus interest accrued to the date of purchase and any premium which would otherwise be due if
such Bonds were to be redeemed in accordance with this Agreement.
(D) Redemption Procedure bv Fiscal Aaent. The Fiscal Agent shall cause notice of any
redemption to be mailed by first class mail, postage prepaid, at least thirty (30) days but not
more than sixty (60) days prior to the date fixed for redemption. to the Original Purchaser, to the
Securities Depositories, to one or more Information Services, and to the respective registered
Owners of any Bonds designated for redemption, at their addresses appearing on the Bond
registration books in the Principal Office of the Fiscal Agent; but such mailing shall not be a
condition precedent to such redemption and failure to mail or to receive any such notice, or any
defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds,
Such notice shall state the redemption date and the redemption price and, if less than all
of the then Outstanding Bonds are to be called for redemption, shall designate the CUSIP
numbers and Bond numbers of the Bonds to be redeemed by giving the individual CUSIP
number and Bond number of each Bond to be redeemed or shall state that all Bonds between
two stated Bond numbers, both inclusive, are to be redeemed or that all of the Bonds of one or
more maturities have been called for redemption, shall state as to any Bond called in part the
principal amount thereof to be redeemed, and shall require that such Bonds be then
surrendered at the Principal Office of the Fiscal Agent for redemption at the said redemption
price, and shall state that further interest on such Bonds will not accrue from and after the
redemption date,
Upon the payment of the redemption price of Bonds being redeemed, each check or
other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP
number identifying, by issue and maturity, of the Bonds being redeemed with the proceeds of
such check or other transfer.
Whenever proviSion is made in this Agreement for the redemption of less than all of the
Bonds or any given portion thereof, the Fiscal Agent shall select the Bonds to be redeemed,
from all Bonds or such given portion thereof not previously called for redemption, among
maturities as directed in writing by the Treasurer (who shall specify Bonds to be redeemed so
as to maintain, as much as practicable, the same debt service profile for the Bonds as in effect
prior to such redemption, unless otherwise specified herein), and by lot within a maturity in any
manner which the Fiscal Agent deems appropriate.
Upon surrender of Bonds redeemed in part only, the Authority shall execute and the
Fiscal Agent shall authenticate and deliver to the registered Owner, at the expense of the
Authority, a new Bond or Bonds. of the same series and maturity, of authorized denominations
in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds,
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(E) Effect of Redemotion, From and after the date fixed for redemption, if funds
available for the payment of the principal of, and interest and any premium on, the Bonds so
called for redemption shall have been deposited in the Bond Fund, such Bonds so called shall
cease to be entitled to any benefit under this Agreement other than the right to receive payment
of the redemption price, and no interest shall accrue thereon on or after the redemption date
specified in such notice,
All Bonds redeemed and purchased by the Fiscal Agent pursuant to this Section shall be
canceled by the Fiscal Agent. The Fiscal Agent shall destroy the canceled Bonds and issue a
certificate of destruction thereof to the Authority.
Section 2,04, Form of Bonds. The Series 2003-A Bonds, the form of Fiscal Agent's
certificate of authentication and the form of assignment, to appear thereon, shall be
substantially in the forms, respectively, set forth in Exhibit A attached hereto and by this
reference incorporated herein, with necessary or appropriate variations, omissions and
insertions, as permitted or required by this Agreement, the Resolution and the Act.
Section 2,05, Execution of Bonds, The Bonds shall be executed on behalf of the
Authority by the manual or facsimile signatures of its Chairman and Secretary who are in office
on the date of adoption of this Agreement or at any time thereafter, and the seal of the Authority
shall be impressed, imprinted or reproduced by facsimile signature thereon, If any officer
whose signature appears on any Bond ceases to be such officer before delivery of the Bonds to
the owner, such signature shall nevertheless be as effective as if the officer had remained in
office until the delivery of the Bonds to the owner, Any Bond may be signed and attested on
behalf of the Authority by such persons as at the actual date of the execution of such Bond
shall be the proper officers of the Authority although at the nominal date of such Bond any such
person shall not have been such officer of the Authority.
Only such Bonds as shall bear thereon a certificate of authentication in substantially the
form set forth in Exhibit A, executed and dated by the Fiscal Agent, shall be valid or obligatory
for any purpose or entitled to the benefits of this Agreement, and such certificate of
authentication of the Fiscal Agent shall be conclusive evidence that the Bonds registered
hereunder have been duly authenticated, registered and delivered hereunder and are entitled to
the benefits of this Agreement.
Section 2,06, Transfer of Bonds, Any Bond may, in accordance with its terms, be
transferred, upon the books required to be kept pursuant to the provisions of Section 2,08 by
the person in whose name it is registered, in person or by his duly authorized attorney, upon
surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of
transfer in a form acceptable to the Fiscal Agent. The cost for any services rendered or any
expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the
Authority, The Fiscal Agent shall collect from the Owner requesting such transfer any tax or
other governmental charge required to be paid with respect to such transfer.
Whenever any Bond or Bonds shall be surrendered for transfer, the Authority shall
execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds, for like
aggregate principal amount of authorized denomination(s).
No transfers of Bonds shall be required to be made (i) fifteen days prior to the date
established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond
-16-
after such Bond has been selected for redemption, or (ili) between a Record Date and the
succeeding Interest Payment Date,
Section 2,07, Exchanae of Bonds, Bonds may be exchanged at the Principal Office of
the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations
and of the same series and maturity. The cost for any services rendered or any expenses
incurred by the Fiscal Agent in connection with any such exchange shall be paid by the
Authority, The Fiscal Agent shall collect from the Owner requesting such exchange any tax or
other governmental charge required to be paid with respect to such exchange,
No exchanges of Bonds shall be required to be made (i) fifteen days prior to the date
established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond
after such Bond has been selected for redemption, or (Iii) between a Record Date and the
succeeding Interest Payment Date.
Section 2,08, Bond Reaister. The Fiscal Agent will keep or cause to be kept, at its
Principal Office sufficient books for the registration and transfer of the Bonds, which books shall
show the series number, date, amount, rate of interest and last known Owner of each Bond and
shall at all times be open to inspection by the Authority during regular business hours upon
reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall, under such
reasonable regulations as it may prescribe, register or transfer or cause to be registered or
transferred, on said books, the ownership of the Bonds as hereinbefore provided.
The Authority and the Fiscal Agent will treat the Owner of any Bond whose name
appears on the Bond register as the absolute Owner of such Bond for any and all purposes,
and the Authority and the Fiscal Agent shall not be affected by any notice to the contrary, The
Authority and the Fiscal Agent may rely on the address of the Bondowner as it appears in the
Bond register for any and all purposes,
Section 2,09, Temoorarv Bonds, The Bonds may be initially issued in temporary form
exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be
printed, lithographed or typewritten, shall be of such authorized denominations as may be
determined by the Authority, and may contain such reference to any of the provisions of this
Agreement as may be appropriate, Every temporary Bond shall be executed by the Authority
upon the same conditions and in substantially the same manner as the definitive Bonds. If the
Authority issues temporary Bonds it will execute and furnish definitive Bonds without delay and
thereupon the temporary Bonds shall be surrendered, for cancellation. in exchange for the
definitive Bonds at the Principal Office of the Fiscal Agent or at such other location as the Fiscal
Agent shall designate, and the Fiscal Agent shall authenticate and deliver in exchange for such
temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized
denominations, Until so exchanged, the temporary Bonds shall be entitled to the same benefits
under to this Agreement as definitive Bonds authenticated and delivered hereunder,
Section 2,10, Bonds Mutilated, Lost. Destroved or Stolen, If any Bond shall become
mutilated, the Authority, at the expense of the Owner of said Bond, shall execute, and the Fiscal
Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in exchange
and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the
Bond so mutilated, Every mutilated Bond so surrendered to the Fiscal Agent shall be canceled
by it and destroyed by the Fiscal Agent who shall deliver a certificate of destruction thereof to
the Authority. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction
or theft may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and
indemnity for the Authority and the Fiscal Agent satisfactory to the Fiscal Agent shall be given,
-17-
the Authority, at the expense of the Owner, shall execute, and the Fiscal Agent shall
authenticate and deliver, a new Bond of like tenor and principal amount in lieu of and in
substitution for the Bond so lost, destroyed or stolen, The Authority may require payment of a
sum not exceeding the actual cost of preparing each new Bond delivered under this Section
and of the expenses which may be incurred by the Authority and the Fiscal Agent for the
preparation, execution, authentication and delivery, Any Bond delivered under the provisions of
this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original
additional contractual obligation on the part of the Authority whether or not the Bond so alleged
to be lost, destroyed or stolen is at any time enforceable by anyone, and shall be equally and
proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to
this Agreement.
Section 2,11, Limited Obliaation, All obligations of the Authority under this Agreement
and the Bonds shall be special obligations of the Authority, payable solely from the Special Tax
Revenues and the funds pledged therefore hereunder, Neither the faith and credit nor the
taxing power of the Authority (except to the limited extent set forth herein) or the State of
California or any political subdivision thereof is pledged to the payment of the Bonds, The City
has no obligations whatsoever under this Agreement or otherwise with respect to the Bonds,
Section 2,12, No Acceleration. The principal of the Bonds shall not be subject to
acceleration hereunder. Nothing in this Section shall in any way prohibit the redemption of
Bonds under Section 2,03 hereof, or the defeasance of the Bonds and discharge of this
Agreement under Section 9,03 hereof,
Section 2.13. Book-Entry Svstem, DTC shall act as the initial Depository for the Bonds,
One Bond for each maturity of the Bonds shall be initially executed, authenticated, and
delivered as set forth herein with a separate fully registered certificate (in print or typewritten
form), Upon initial execution, authentication, and delivery, the ownership of the Bonds shall be
registered in the Bond Register kept by the Fiscal Agent for the Bonds in the name of Cede &
Co" as nominee of DTC or such nominee as DTC shall appoint in writing,
The representatives of the City and the Fiscal Agent are hereby authorized to take any
and all actions as may be necessary and not inconsistent with this Agreement to qualify the
Bonds for the Depository's book-entry system, including the execution of the Depository's
required representation letter,
With respect to Bonds registered in the Bond Register in the name of Cede & Co., as
nominee of DTC, neither the City nor the Fiscal Agent shall have any responsibility or obligation
to any broker-dealer, bank, or other financial institution for which DTC holds Bonds as
Depository from time to time (the "DTC Participants") or to any person for which a DTC
Participant acquires an interest in the Bonds (the "Beneficial Owners"), Without limiting the
immediately preceding sentence, neither the City nor the Fiscal Agent shall have any
responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co"
or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to
any DTC Participant, any Beneficial Owner, or any other person, other than DTC, of any notice
with respect to the Bonds, including any notice of redemption, (iii) the selection by the
Depository of the beneficial interests in the Bonds to be redeemed in the event the City elects to
redeem the Bonds in part, (iv) the payment to any DTC Participant, any Beneficial Owner, or
any other person, other than DTC, of any amount with respect to the principal of or interest on
the Bonds, or (v) any consent given or other action taken by the Depository as Owner of the
Bonds,
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Except as set forth above, the Fiscal Agent may treat as and deem DTC to be the
absolute Owner of each Bond for which DTC is acting as Depository for the purpose of
payment of the principal of and interest on such Bonds, for the purpose of giving notices of
redemption and other matters with respect to such Bonds, for the purpose of registering
transfers with respect to such Bonds, and for all purposes whatsoever, The Fiscal Agent shall
pay all principal of and interest on the Bonds only to or upon the order of the Owners as shown
on the Bond Register, and all such payments shall be valid and effective to fully satisfy and
discharge all obligations with respect to the principal of and interest on the Bonds to the extent
of the sums or sums so paid,
No person other than an Owner, as shown on the Bond Register, shall receive a
physical Bond, Upon delivery by DTC to the Fiscal Agent of written notice to the effect that
DTC has determined to substitute a new nominee in place of Cede & Co" and subject to the
transfer provisions in Section 2,06 hereof, references to "Cede & Co," in this Section 2,13 shall
refer to such new nominee of DTC,
DTC may determine to discontinue providing its services with respect to the Bonds at
any time by giving written notice to the Fiscal Agent during any time that the Bonds are
Outstanding, and discharging its responsibilities with respect thereto under applicable law, The
City may terminate the services of DTC with respect to the Bonds if it determines that DTC is
unable to discharge its responsibilities with respect to the Bonds or that continuation of the
system of book-entry transfers through DTC is not in the best interest of the Beneficial Owners,
and the City shall mail notice of such termination to the Fiscal Agent.
Upon the termination of the services of DTC as provided in the previous paragraph, and
if no substitute Depository willing to undertake the functions hereunder can be found which is
willing and able to undertake such functions upon reasonable or customary terms, or if the City
determines that it is in the best interest of the Beneficial Owners of the Bonds that they be able
to obtain certificated Bonds. the Bonds shall no longer be restricted to being registered in the
Bond Register of the Fiscal Agent in the name of Cede & Co" as nominee of DTC, but may be
registered in whatever name or name the Owners shall designate at that time, in accordance
with Section 2,06,
To the extent that the Beneficial Owners are designated as the transferee by the
Owners, in accordance with Section 2,06, the Bonds will be delivered to such Beneficial Owners
as soon as practicable.
Section 2,14, Issuance of Parity Bonds, The Authority may issue one series of bonds
(the "Parity Bonds"), in addition to the Series 2003-A Bonds authorized under Section 2,01
hereof, by means of a Supplemental Agreement and without the consent of any Bondowners,
upon compliance with the provisions of this Section 2,14, Any such Parity Bonds shall
constitute Bonds hereunder and shall be secured by a lien on the Special Tax Revenues and
funds pledged for the payment of the Bonds hereunder on a parity with all other Bonds
Outstanding hereunder, The Authority may issue the Parity Bonds subject to the following
specific conditions precedent:
(A) Current Compliance. The Authority shall be in compliance on the date of
issuance of the Parity Bonds with all covenants set forth in this Agreement and all
Supplemental Agreements.
(B) Pavment Dates: Level Debt Service. The Supplemental Agreement
providing for the issuance of such Parity Bonds shall provide that interest thereon shall
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be payable on March 1 and September 1, and principal thereof shall be payable on
September 1 in any year in which principal is payable (provided that there shall be no
requirement that any Parity Bonds pay interest on a current basis), The final maturity of
the Parity Bonds may be later than the final maturity of the Series 2003-A Bonds;
however, the Debt Service on the Bonds following the issuance of the Parity Bonds shall
not vary in any future full Bond Year by more than $25,000 from that payable in any
other full Bond Year following such issuance,
(C) Funds and Accounts; Reserve Fund Deposit. The Supplemental Agreement
providing for the issuance of such Parity Bonds may provide for the establishment of
separate funds and accounts, and shall provide for a deposit to the Reserve Fund in an
amount necessary so that the amount on deposit therein, following the issuance of such
Parity Bonds, is equal to the Reserve Requirement.
(D) Value-to-Lien Ratio, The District Value shall be at least three times the sum
of: (i) the aggregate principal amount of all Bonds then Outstanding, plus (ii) the
aggregate principal amount of the series of Parity Bonds proposed to be issued, plus (iil)
the aggregate principal amount of any fixed assessment liens on the parcels in the
District subject to the levy of Special Taxes, plus (iv) a portion of the aggregate principal
amount of any and all other community facilities district bonds then outstanding and
payable at least partially from special taxes to be levied on parcels of land within the
District (the "Other District Bonds") equal to the aggregate principal amount of the Other
District Bonds multiplied by a fraction, the numerator of which is the amount of special
taxes levied for the Other District Bonds on parcels of land within the District, and the
denominator of which is the total amount of special taxes levied for the Other District
Bonds on all parcels of land against which the special taxes are levied to pay the Other
District Bonds (such fraction to be determined based upon the maximum special taxes
which could be levied in the year in which maximum annual debt service on the Other
District Bonds occurs), based upon information from the most recent available Fiscal
Year,
(E) The Special Tax Coveraae, The Authority shall obtain a certificate of a Tax
Consultant to the effect that (i) the amount of the maximum Special Taxes that may be
levied in each Fiscal Year, less an amount sufficient to pay annual Administrative
Expenses (as determined by the Treasurer), shall be at least one hundred ten percent
(110%) of the total Annual Debt Service for each such Fiscal Year on the Bonds and the
proposed Parity Bonds, and (i1) the sum of the Assigned Special Tax that may be levied
on Developed Properly and the maximum Special Tax that may be levied on Approved
Property (as such terms are defined in the Rate and Method of Apportionment of
Special Taxes for the District) in the next Fiscal Year, based upon the status of the land
in the District as of the date of issuance of the Parity Bonds, shall not be less than the
aggregate maximum Annual Debt Service on the Bonds and the proposed Parity Bonds,
(F) Other Reauirements, (i) Either (a) there shall have been issued by the City,
prior to the issuance of the Parity Bonds, at least 28 building permits for the construction
of dwelling units in Tract No. 26941 of the District; or (b) in making the calculation
referred to in clause (ii) of Section 2,14(E) above, it shall be assumed that the lots in
Tract No, 26941 of the District will provide no more than $143,808 in aggregate annual
Special Taxes, (ii) There shall be only one series of Parity Bonds. (iii) The delinquency
rate for Special Taxes levied on Undeveloped Property and any Approved Property in
Zone 1 (as such terms are defined in the Rate and Method of Apportionment of Special
Taxes for the District) in the most recent Fiscal Year for which information is available
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shall not be in excess of five percent of the total Special Tax levy for such Fiscal Year;
and, in any event, the amount on deposit in the Reserve Fund immediately after the
issuance of the Parity Bonds shall be not less than an amount equal to the then Reserve
Requirement.
(G) Officer's Certificate. The Authority shall deliver to the Fiscal Agent an
Officer's Certificate certifying that the conditions precedent to the issuance of such
Parity Bonds set forth in subsections (A), (B), (C), (D), (E) and (F) of this Section 2,14
have been satisfied, In delivering such Officer's Certificate, the Authorized Officer that
executes the same may conclusively rely upon such certificates of the Fiscal Agent, the
Tax Consultant, appraisers, owners of Undeveloped Property and of Approved Property
and others selected with due care, without the need for independent inquiry or
certification,
Notwithstanding the foregoing, the Authority may issue Refunding Bonds as Parity
Bonds without the need to satisfy the requirements of clauses (D), (E) and (F) above, and
without limitation on the number of series of such Refunding Bonds; and, in connection
therewith, the Officer's Certificate in clause (G) above need not make reference to said clauses
(D), (E) and (F),
Nothing in this Section 2,14 shall prohibit the Authority from issuing bonds or otherwise
incurring debt secured by a pledge of Special Tax Revenues subordinate to the pledge thereof
under Section 3,02 of this Agreement.
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ARTICLE III
ISSUANCE OF BONDS
Section 3,01, Issuance and Deliverv of Series 2003-A Bonds, At any time after the
execution of this Agreement, the Authority may issue the Series 2003-A Bonds for the District in
the aggregate principal amount set forth in Section 2,01 and deliver the Series 2003-A Bonds to
the Original Purchaser, The Authorized Officers of the Authority are hereby authorized and
directed to deliver any and all documents and instruments necessary to cause the issuance of
the Series 2003-A Bonds in accordance with the provisions of the Act, the Resolution and this
Agreement, to authorize the payment of Costs of Issuance and costs of the Project by the
Fiscal Agent from the proceeds of the Series 2003-A Bonds and to do and cause to be done
any and all acts and things necessary or convenient for delivery of the Series 2003-A Bonds to
the Original Purchaser,
Section 3,02. Pledae of Special Tax Revenues. The Bonds shall be secured by a first
pledge (which pledge shall be effected in the manner and to the extent herein provided) of all of
the Special Tax Revenues and all moneys deposited in the Bond Fund (including the Special
Tax Prepayments Account and the Capitalized Interest Account therein), the Reserve Fund
and, until disbursed as provided herein, in the Special Tax Fund, The Special Tax Revenues
and all moneys deposited into said funds (except as otherwise provided herein) are hereby
dedicated to the payment of the principal of, and interest and any premium on, the Bonds as
provided herein and in the Act until all of the Bonds have been paid and retired or until moneys
or Federal Securities have been set aside irrevocably for that purpose in accordance with
Section 9,03,
Amounts in the Administrative Expense Fund, the Improvement Fund (including the
accounts therein), the Refunding Fund and the Costs of Issuance Fund are not pledged to the
repayment of the Bonds, The Project financed with the proceeds of the Bonds are not in any
way pledged to pay the Debt Service on the Bonds. Any proceeds of condemnation or
destruction of any portion of the Project are not pledged to pay the Debt Service on the Bonds
and are free and clear of any lien or obligation imposed hereunder.
Section 3,03, Validity of Bonds, The validity of the authorization and issuance of the
Bonds shall not be dependent upon the completion of the construction of the Project, or upon
the performance by any person of such persons obligation(s) with respect to the Project.
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ARTICLE IV
FUNDS AND ACCOUNTS
Section 4,01, Application of Proceeds of Sale of Series 2003-A Bonds and Other
Monevs, The proceeds of the purchase of the Series 2003-A Bonds by the Original Purchaser
(being $ ) shall be paid to the Fiscal Agent, who shall forthwith set aside, pay over
and deposit such proceeds on the Closing Date as follows:
(A) deposit in the Costs of Issuance Fund an amount equal to $
(B) deposit in the Reserve Fund an amount equal to $
(C) deposit in the Capitalized Interest Account of the Bond Fund an amount
equal to $
(D) deposit $ to a temporary account on the records of the Fiscal
Agent hereby created for such purpose, for immediate transfer to the Treasurer, for
deposit by the Treasurer in the Administrative Expense Fund;
(E) deposit in the following accounts within the Improvement Fund the following
amounts: (i) in the City Account an amount equal to $1,052,300,00, (ii) in the Caltrans
Account an amount equal to $1,000,000,00, (iii) in the EMWD Account an amount equal
to $2,575,856.00, (iv) in the RCWD Account an amount equal to $1,341,260.00, and (v)
in the Acquisition Account an amount equal to $ ; and
(F) deposit in the Refunding Fund an amount equal to $
Section 4,02, Improvement Fund
(A) Establishment of Improvement Fund, There is hereby established as a separate
fund to be held by the Fiscal Agent, the Temecula Public Financing Authority Community
Facilities District No, 03-1 (Crowne Hill) Improvement Fund (the "Improvement Fund"), and
within the Improvement Fund a City Account, a Caltrans Account, an EMWD Account, a RCWD
Account and an Acquisition Account. Deposits shall be made to the accounts within the
Improvement Fund as required by Section 4,01 (E), Moneys in the accounts within the
Improvement Fund shall be held in trust by the Fiscal Agent for the benefit of the Authority, and
shall be disbursed for the payment or reimbursement of costs of the Project.
(B) Procedure for Disbursement. Disbursements from the City Account of the
Improvement Fund shall be made by the Fiscal Agent upon receipt of an Officer's Certificate
which shall: (i) set forth the amount required to be disbursed, the purpose for which the
disbursement is to be made (which shall be for payment of a Project cost or to reimburse
expenditures of the Authority, the City or any other party for Project costs previously paid), that
the disbursement is a proper expenditure from the City Account of the Improvement Fund, and
the person to which the disbursement is to be paid; and (ii) certify that no portion of the amount
then being requested to be disbursed was set forth in any Officer's Certificate previously filed
requesting a disbursement.
Disbursements from the Acquisition Account within the Improvement Fund shall be
made by the Fiscal Agent upon receipt of an Officer's Certificate, which shall: (i) set forth the
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amount required to be disbursed, the purpose for which the disbursement is to be made (which
shall be for a Project cost identified in the Acquisition Agreement), that the disbursement is a
proper expenditure from Acquisition Account of the Improvement Fund, and the person to which
the disbursement is to be paid; and (ii) certify that no' portion of the amount then being
requested to be disbursed was set forth in any Officer's Certificate previously filed requesting a
disbursement.
Disbursements from the Caltrans Account of the Improvement Fund shall be made by
the Fiscal Agent upon receipt of an Officer's Certificate which shall: (i) set forth the amount
required to be disbursed, the purpose for which the disbursement is to be made (which shall be
for payment of a Project cost or to reimburse expenditures of the Authority, the City or any other
party for Project costs previously paid, which Project cost relates to the improvement of State
Route 79 or interchange improvements at the intersection of Interstate 15 and State Route 79),
that the disbursement is a proper expenditure from the Caltrans Account of the Improvement
Fund, and the person to which the disbursement is to be paid; and (ii) certify that no portion of
the amount then being requested to be disbursed was set forth in any Officer's Certificate
previously filed requesting a disbursement.
Disbursements from the EMWD Account of the Improvement Fund shall be made by the
Fiscal Agent upon receipt of a certificate executed by Lennar and EMWD in the form of Exhibit
C to the Joint Community Facilities Agreement - EMWD which shall set forth the amount
required to be disbursed.
Disbursements from the RCWD Account of the Improvement Fund shall be made by the
Fiscal Agent upon receipt of a certificate executed by Lennar and RCWD in the form of Exhibit
C to the Joint Community Facilities Agreement - RCWD which shall set forth the amount
required to be disbursed,
Each such Officer's Certificate or other certificate submitted to the Fiscal Agent as
described in this Section 4.02(B) shall be sufficient evidence to the Fiscal Agent of the facts
stated therein, and the Fiscal Agent shall have no duty to confirm the accuracy of such facts,
(C) Investment. Moneys in the accounts within the Improvement Fund shall be invested
and deposited in accordance with Section 6,01, Interest earnings and profits from the
investment and deposit of amounts in the City Account, the Acquisition Account and the
Caltrans Account of the Improvement Fund shall be retained in the accounts of the
Improvement Fund, respectively, to be used for the purposes of the respective account.
Interest earnings and profits from the investment and deposit of amounts in the EMWD Account
and the RCWD Account of the Improvement Fund shall be transferred on each Interest
Payment Date or on any other date upon receipt by the Fiscal Agent of an Officer's Certificate
requesting such transfers to the City Account of the Improvement Fund to be used for the
purposes of the City Account of the Improvement Fund.
(D) Closino of Accounts, Upon the filing of an Officer's Certificate stating that the
Project has been completed and that all costs of the Project have been paid, or that any such
costs are not required to be paid from the Improvement Fund, the Fiscal Agent shall transfer
the amount, if any, remaining in the accounts within the Improvement Fund to the Bond Fund to
be used to pay Debt Service on the Bonds on the next Interest Payment Date and the
Improvement Fund shall be closed,
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Section 4,03. Costs of Issuance Fund,
(A) Establishment of Costs of Issuance Fund, There is hereby established as a
separate fund to be held by the Fiscal Agent, the Temecula Public Financing Authority
Community Facilities District No, 03-1 (Crowne Hill) Costs of Issuance Fund (the "Costs of
Issuance Fund"), to the credit of which a deposit shall be made as required by Section 4,01 (A),
Moneys in the Costs of Issuance Fund shall be held in trust by the Fiscal Agent and shall be
disbursed as provided in subsection (B) of this Section for the payment or reimbursement of
Costs of Issuance,
(B) Disbursement. Amounts in the Costs of Issuance Fund shall be disbursed from
time to time to pay Costs of Issuance, as set forth in a requisition containing respective
amounts to be paid to the designated payees, signed by the Treasurer and delivered to the
Fiscal Agent concurrently with the delivery of the Bonds, or otherwise in an Officer's Certificate
delivered to the Fiscal Agent after the Closing Date, The Fiscal Agent shall pay all Costs of
Issuance after receipt of an invoice from any such payee which requests payment in an amount
which is less than or equal to the amount set forth with respect to such payee pursuant to an
Officer's Certificate requesting payment of Costs of Issuance, The Fiscal Agent shall maintain
the Costs of Issuance Fund for a period of 90 days from the date of delivery of the Bonds and
then shall transfer any moneys remaining therein, including any investment earnings thereon, to
the Treasurer for deposit by the Treasurer in the Administrative Expense Fund,
(C) Investment. Moneys in the Costs of Issuance Fund shall be invested and deposited
in accordance with Section 6,01, Interest earnings and profits resulting from said investment
shall be retained by the Fiscal Agent in the Costs of Issuance Fund to be used for the purposes
of such fund,
Section 4,04, Reserve Fund.
(A) Establishment of Fund, There is hereby established as a separate fund to be held
by the Fiscal Agent the Temecula Public Financing Authority Community Facilities District No,
03-1 (Crowne Hill) Reserve Fund (the "Reserve Fund"), to the credit of which a deposit shall be
made as required by Section 4,01 (B) equal to the Reserve Requirement as of the Closing Date
for the Bonds, and deposits shall be made as provided in Section 4,06(B), Moneys in the
Reserve Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the
Bonds as a reserve for the payment of principal of, and interest and any premium on, the Bonds
and shall be subject to a lien in favor of the Owners of the Bonds,
(8) Use of Reserve Fund. Except as otherwise provided in this Section, all amounts
deposited in the Reserve Fund shall be used and withdrawn by the Fiscal Agent solely for the
purpose of making transfers to the Bond Fund in the event of any deficiency at any time in the
Bond Fund of the amount then required for payment of the principal of, and interest and any
premium on, the Bonds or, in accordance with the provisions of this Section, for the purpose of
redeeming Bonds from the Bond Fund,
(C) Transfer Due to Deficiencv in Bond Fund. Whenever transfer is made from the
Reserve Fund to the Bond Fund due to a deficiency in the Bond Fund, the Fiscal Agent shall
provide written notice thereof to the Treasurer, specifying the amount withdrawn,
(D) Transfer of Excess of Reserve Reauirement. Whenever, on the Business Day prior
to any Interest Payment Date, or on any other date at the request of the Treasurer, the
amount in the Reserve Fund exceeds the Reserve Requirement, the Fiscal Agent shall provide
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written notice to the Treasurer of the amount of the excess and shall transfer an amount equal
to the excess from the Reserve Fund to the Bond Fund to be used for the payment of interest
on the Bonds on the next Interest Payment Date in accordance with Section 4,05,
(E) Transfer When Balance Exceeds Outstandina Bonds, Whenever the balance in the
Reserve Fund equals or exceeds the amount required to redeem or pay the Outstanding
Bonds, including interest accrued to the date of payment or redemption and premium, if any,
due upon redemption, the Fiscal Agent shall upon the written direction of the Treasurer transfer
the amount in the Reserve Fund to the Bond Fund to be applied, on the next succeeding
Interest Payment Date to the payment and redemption, in accordance with Section 2,03 and
4,05, as applicable, of all of the Outstanding Bonds, In the event that the amount so
transferred from the Reserve Fund to the Bond Fund exceeds the amount required to pay and
redeem the Outstanding Bonds, the balance in the Reserve Fund shall be transferred to the
Authority to be used for any lawful purpose of the Authority,
Notwithstanding the foregoing, no amounts shall be transferred from the Reserve Fund
pursuant to this Section 4,04(E) until after (i) the calculation of any amounts due to the federal
government pursuant to Section 5,13 following payment of the Bonds and withdrawal of any
such amount from the Reserve Fund for purposes of making such payment to the federal
government, and (ii) payment of any fees and expenses due to the Fiscal Agent.
(F) Transfer Upon Special Tax Prepavment. Whenever Special Taxes are prepaid and
Bonds are to be redeemed with the proceeds of such prepayment pursuant to Section
2,03(A)(iii), a proportionate amount in the Reserve Fund (determined on the basis of the
principal of Bonds to be redeemed, and the original principal of the Bonds) shall be transferred
on the Business Day prior to the redemption date by the Fiscal Agent to the Bond Fund to be
applied to the redemption of the Bonds pursuant to Section 2.03(A)(iii). The Treasurer shall
deliver to the Fiscal Agent an Officer's Certificate specifying any amount to be so transferred,
and the Fiscal Agent may rely on any such Officer's Certificate,
(G) Transfer to Pav Rebate, Amounts in the Reserve Fund may at any time be used, at
the written direction of an Authorized Officer, for purposes of paying any rebate liability under
Section 5,13,
(H) Substitution of Qualified Reserve Fund Credit Instrument. The Authority shall have
the right at any time to release funds from the Reserve Fund, in whole or in part, by tendering to
the Fiscal Agent: (i) a Qualified Reserve Fund Credit Instrument, and (ii) an opinion of Bond
Counsel stating that neither the release of such funds nor the acceptance of such Qualified
Reserve Fund Credit Instrument will cause interest on the Bonds to become includable in gross
income for purposes of federal income taxation, Upon tender of such items to the Fiscal Agent,
and upon delivery by the Authority to the Fiscal Agent of a written calculation of the amount
permitted to be released from the Reserve Fund (upon which calculation the Fiscal Agent may
conclusively rely), the Fiscal Agent shall transfer such funds from the Reserve Fund to the
Authority free and clear of the lien of this Agreement. The Fiscal Agent shall comply with all
documentation relating to a Qualified Reserve Fund Credit Instrument as shall be required to
maintain such Qualified Reserve Fund Credit Instrument in full force and effect and as shall be
required to receive payments thereunder in the event and to the extent required to make any
payment when and as required under Section 4,04,
At least fifteen (15) days prior to the expiration of any Qualified Reserve Fund Credit
Instrument, the Authority shall be obligated either (i) to replace such Qualified Reserve Fund
Credit Instrument with a new Qualified Reserve Fund Credit Instrument, or (ii) to deposit or
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cause to be deposited with the Fiscal Agent an amount of funds such that the amount on
deposit in the Reserve Fund is equal to the Reserve Requirement (without taking into account
such expiring Qualified Reserve Fund Credit Instrument), In the event that the Authority shall
fail to take action as specified in clause (i) or (ii) of the preceding sentence, the Fiscal Agent
shall, prior to the expiration thereof, draw upon the Qualified Reserve Fund Credit Instrument in
full and deposit the proceeds of such draw in the Reserve Fund,
In the event that the Reserve Requirement shall at any time be maintained in the
Reserve Fund in the form of a combination of cash and a Qualified Reserve Fund Credit
Instrument, the Fiscal Agent shall apply the amount of such cash to make any payment
required to be made from the Reserve Fund before the Fiscal Agent shall draw any moneys
under such Qualified Reserve Fund Credit Instrument for such purpose, In the event that the
Fiscal Agent shall at any time draw funds under a Qualified Reserve Fund Credit Instrument to
make any payment then required to be made from the Reserve Fund, the Special Tax
Revenues thereafter received by the Fiscal Agent, to the extent deposited to the Reserve Fund
under Section 4,06(B)(ii), shall be used to reinstate the Qualified Reserve Fund Credit
Instrument.
Section 4.05. Bond Fund,
(A) Establishment of Bond Fund. Capitalized Interest Account and Special Tax
Prepavments Account. There is hereby established as a separate fund to be held by the Fiscal
Agent, the Temecula Public Financing Authority Community Facilities District No, 03-1 (Crowne
Hill) Bond Fund (the "Bond Fund"), to the credit of which deposits shall be made as required by
Sections 4,02(D), 4,04(B), 4,04(D), 4,04(E), 4,04(F), and 4,06(B), and any other amounts
required to be deposited therein by this Agreement or the Act. There is also hereby created in
the Bond Fund, a separate account held by the Fiscal Agent, the Capitalized Interest Account,
to the credit of which deposits shall be made under Section 4,01(C), There is also hereby
created in the Bond Fund a separate account to be held by the Fiscal Agent, consisting of the
Special Tax Prepayments Account, to the credit of which deposits shall be made as provided in
Section 4,06(A),
Moneys in the Bond Fund and the accounts therein shall be held in trust by the Fiscal
Agent for the benefit of the Owners of the Bonds, shall be disbursed for the payment of the
principal of, and interest and any premium on, the Bonds as provided below, and, pending such
disbursement, shall be subject to a lien in favor of the Owners of the Bonds.
(B) Disbursements, (i) Bond Fund Disbursements. On each Interest Payment
Date, the Fiscal Agent shall withdraw from the Bond Fund and pay to the Owners of the
Bonds the principal, and interest and any premium, then due and payable on the Bonds,
including any amounts due on the Bonds by reason of the sinking payments set forth in
Section 2,03(A)(ii), or a redemption of the Bonds required by Section 2,03(A)(i), such
payments to be made in the priority listed in the second succeeding paragraph,
Notwithstanding the foregoing, amounts in the Bond Fund as a result of a transfer
pursuant to Section 4,02(0) shall be used to pay the principal of and interest on the
Bonds prior to the use of any other amounts in the Bond Fund for such purpose,
In the event that amounts in the Bond Fund are insufficient for the purposes set
forth in the preceding paragraph, the Fiscal Agent shall withdraw from the Reserve Fund
to the extent of any funds therein amounts to cover the amount of such Bond Fund
insufficiency, Amounts so withdrawn from the Reserve Fund shall be deposited in the
Bond Fund,
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If, after the foregoing transfers, there are insufficient funds in the Bond Fund to
make the payments provided for in the first sentence of the first paragraph of this
Section 4,02(B)(i), the Fiscal Agent shall apply the available funds first to the payment of
interest on the Bonds, then to the payment of principal due on the Bonds other than by
reason of sinking payments, and then to payment of principal due on the Bonds by
reason of sinking payments. Any sinking payment not made as scheduled shall be
added to the sinking payment to be made on the next sinking payment date,
(ii) Special Tax Prepayments Account Disbursements, Moneys in the Special
Tax Prepayments Account shall be transferred by the Fiscal Agent to the Bond Fund on
the next date for which notice of redemption of Bonds can timely be given under Section
2,03(A)(iii), and notice to the Fiscal Agent can timely be given under Section 2,03(B),
and shall be used (together with any amounts transferred pursuant to Section 4,04(F))
to redeem Bonds on the redemption date selected in accordance with Section 2.03.
(iii) Capitalized Interest Account Disbursements, Moneys in the Capitalized
Interest Account shall be transferred to the Bond Fund on the Business Day prior to
each Interest Payment Date, in the amount equal to and to be used for the payment of
interest on the Bonds due on the next succeeding Interest Payment Date; provided that
no such transfer shall exceed the amount then on deposit in the Capitalized Interest
Account. When no amounts remain on deposit in such account, the Capitalized Interest
Account shall be closed.
(C) Investment. Moneys in the Bond Fund, the Capitalized Interest Account and the
Special Tax Prepayments Account shall be invested and deposited in accordance with Section
6,01, Interest earnings and profits resulting from the investment and deposit of amounts in the
Bond Fund, the Capitalized Interest Account and the Special Tax Prepayments Account shall
be retained in the Bond Fund, the Capitalized Interest Account and the Special Tax
Prepayments Account, respectively, to be used for purposes of such fund and accounts,
Section 4,06, Special Tax Fund,
(A) Establishment of Special Tax Fund, There is hereby established as a separate
fund to be held by the Fiscal Agent, the Temecula Public Financing Authority Community
Facilities District No, 03-1 (Crowne Hill) Special Tax Fund (the "Special Tax Fund"), to the credit
of which the Fiscal Agent shall deposit amounts received from or on behalf of the Authority
consisting of Special Tax Revenues, and any amounts required by Section 4,07(8) to be
deposited therein, The Authority shall promptly remit any such amounts received by it to the
Fiscal Agent for deposit by the Fiscal Agent to the Special Tax Fund,
Notwithstanding the foregoing, (i) any Special Tax Revenues constituting payment of the
portion of the Special Tax levy for Administrative Expenses shall be deposited by the Treasurer
in the Administrative Expense Fund, and (ii) any proceeds of Special Tax Prepayments shall be
transferred by the Treasurer to the Fiscal Agent for deposit by the Fiscal Agent (as specified in
writing by the Treasurer to the Fiscal Agent) directly in the Special Tax Prepayments Account
established pursuant to Section 4,05(A),
Moneys in the Special Tax Fund shall be held in trust by the Fiscal Agent for the benefit
of the Authority and the Owners of the Bonds, shall be disbursed as provided below and,
pending disbursement, shall be subject to a lien in favor of the Owners of the Bonds and the
Authority.
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(B) Disbursements, On each Interest Payment Date, the Fiscal Agent shall withdraw
from the Special Tax Fund and transfer the following amounts in the fOllowing order of priority
(i) to the Bond Fund an amount, taking into account any amounts then on deposit in the Bond
Fund and any expected transfers from the Improvement Fund, the Reserve Fund, the
Capitalized Interest Account and the Special Tax Prepayments Account to the Bond Fund
pursuant to Sections 4,02(D), 4.04(D), (E), and (F), and 4,05(B)(ii) and (iii), such that the
amount in the Bond Fund equals the principal (including any sinking payment), premium, if any,
and interest due on the Bonds on such Interest Payment Date, and (i1) to the Reserve Fund an
amount, taking into account amounts then on deposit in the Reserve Fund, such that the
amount in the Reserve Fund is equal to the Reserve Requirement.
(C) Investment. Moneys in the Special Tax Fund shall be invested and deposited in
accordance with Section 6,01, Interest earnings and profits resulting from such investment and
deposit shall be retained in the Special Tax Fund to be used for the purposes thereof,
Section 4,07, Administrative Expense Fund,
(A) Establishment of Administrative Expense Fund, There is hereby established as a
separate fund to be held by the Treasurer, the Temecula Public Financing Authority
Community Facilities District No, 03-1 (Crowne Hill) Administrative Expense Fund (the
"Administrative Expense Fund"), to the credit of which deposits shall be made as required by
Sections 4,01 (D), 4,03(B) and 4,06(B), Moneys in the Administrative Expense Fund shall be
held in trust by the Treasurer for the benefit of the Authority, and shall be disbursed as provided
below,
(B) Disbursement. Amounts in the Administrative Expense Fund shall be withdrawn by
the Treasurer and paid to the Authority or its order upon receipt by the Treasurer of an Officer's
Certificate stating the amount to be withdrawn, that such amount is to be used to pay an
Administrative Expense or a Costs of Issuance, and the nature of such Administrative Expense
or Costs of Issuance. Amounts transferred from the Costs of Issuance Fund to the
Administrative Expense Fund pursuant to Section 4,03(B) shall be separately identified at all
times, and shall be expended for purposes of the Administrative Expense Fund prior to the use
of amounts transferred to the Administrative Expense Fund from the Special Tax Fund pursuant
to Section 4,06(B),
Annually, on the last day of each Fiscal Year commencing with the last day of Fiscal
Year 2003-2004, the Treasurer shall withdraw any amounts then remaining in the
Administrative Expense Fund in excess of $20,000 that have not otherwise been allocated to
pay Administrative Expenses incurred but not yet paid, and which are not otherwise
encumbered, and transfer such amounts to the Fiscal Agent for deposit by the Fiscal Agent in
the Special Tax Fund,
(C) Investment. Moneys in the Administrative Expense Fund shall be invested and
deposited in accordance with Section 6,01, Interest earnings and profits resulting from said
investment shall be retained by the Treasurer in the Administrative Expense Fund to be used
for the purposes thereof,
Section 4,08, Refundinq Fund.
(A) Establishment of Refundinq Fund, There is hereby established as a separate fund
to be held by the Fiscal Agent, the Temecula Public Financing Authority Community Facilities
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District No, 03-1 (Crowne Hill), Refunding Fund (the "Refunding Fund"), to the credit of which a
deposit shall be made as required by Section 4,01 (F), Moneys in the Refunding Fund shall be
held in trust by the Fiscal Agent for the benefit of the Authority, and shall be disbursed, as
provided in subsection (B) of this Section,
(B) Procedure for Disbursement. On the Closing Date, all amounts on deposit in the
Refunding Fund shall be transferred by the Fiscal Agent to , to be used to pay in
full and discharge the assessment liens on property in the District for the County's Assessment
District No, 159, After disbursement of all amounts on deposit in the Refunding Fund, the
Refunding Fund shall be closed,
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ARTICLE V
OTHER COVENANTS OF THE AUTHORITY
Section 5,01, Punctual Pavment. The Authority will punctually payor cause to be paid
the principal of, and interest and any premium on, the Bonds when and as due in strict
conformity with the terms of this Agreement and any Supplemental Agreement, and it will
faithfully observe and perform all of the conditions covenants and requirements of this
Agreement and all Supplemental Agreements and of the Bonds,
Section 5,02, Limited Obliaation. The Bonds are limited obligations of the Authority on
behalf of the District and are payable solely from and secured solely by the Special Tax
Revenues and the amounts in the Bond Fund (including the Special Tax Prepayments Account
and the Capitalized Interest Account therein), the Reserve Fund and, until disbursed as
provided herein, the Special Tax Fund,
Section 5,03, Extension of Time for Pavment. In order to prevent any accumulation of
claims for interest after maturity, the Authority shall not, directly or indirectly, extend or consent
to the extension of the time for the payment of any claim for interest on any of the Bonds and
shall not, directly or indirectly, be a party to the approval of any such arrangement by
purchasing or funding said claims for interest or in any other manner, In case any such claim
for interest shall be extended or funded, whether or not with the consent of the Authority, such
claim for interest so extended or funded shall not be entitled, in case of default hereunder, to
the benefits of this Agreement, except subject to the prior payment in full of the principal of all
of the Bonds then Outstanding and of all claims for interest which shall not have so extended or
funded,
Section 5,04, Aaainst Encumbrances, The Authority will not encumber, pledge or place
any charge or lien upon any of the Special Tax Revenues or other amounts pledged to the
Bonds superior to or on a parity with the pledge and lien herein created for the benefit of the
Bonds, except as permitted by this Agreement.
Section 5,05, Books and Records, The Authority will keep. or cause to be kept, proper
books of record and accounts, separate from all other records and accounts of the Authority, in
which complete and correct entries shall be made of all transactions relating to the expenditure
of amounts disbursed from the Administrative Expense Fund and to the Special Tax Revenues,
Such books of record and accounts shall at all times during business hours be subject to the
inspection of the Fiscal Agent and the Owners of not less than ten percent (10%) of the
principal amount of the Bonds then Outstanding, or their representatives duly authorized in
writing,
The Fiscal Agent will keep, or cause to be kept, proper books of record and accounts,
separate from all other records and accounts of the Fiscal Agent, in which complete and correct
entries shall be made of all transactions relating to the expenditure of amounts disbursed from
the Bond Fund (including the Special Tax Prepayments Account and the Capitalized Interest
Account therein), the Reserve Fund, the Special Tax Fund, the Refunding Fund, the
Improvement Fund (including the accounts therein) and the Costs of Issuance Fund. Such
books of record and accounts shall at all times during business hours be subject to the
inspection of the Authority and the Owners of not less than ten percent (10%) of the principal
amount of the Bonds then Outstanding, or their representatives duly authorized in writing upon
reasonable prior notice,
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Section 5,06, Protection of Security and Riahts of Owners, The Authority will preserve
and protect the security of the Bonds and the rights of the Owners, and will warrant and defend
their rights against all claims and demands of all persons, From and after the delivery of any of
the Bonds by the Authority, the Bonds shall be incontestable by the Authority,
Section 5.07. Comoliance with Law, The Authority will comply with all applicable
provisions of the Act and law in administering the District and completing the acquisition of the
Project.
Section 5,08, Collection of Soecial Tax Revenues, The Authority shall comply with all
requirements of the Act so as to assure the timely collection of Special Tax Revenues, including
without limitation, the enforcement of delinquent Special Taxes,
On or within five (5) Business Days of each June 1, the Fiscal Agent shall provide the
Treasurer with a notice stating the amount then on deposit in the Bond Fund, the Capitalized
Interest Account and the Reserve Fund, and informing the Authority that the Special Taxes may
need to be levied pursuant to the Ordinance as necessary to provide for the debt service to
become due on the Bonds in the calendar year that commences in the Fiscal Year for which the
levy is to be made, and Administrative Expenses and replenishment (if necessary) of the
Reserve Fund so that the balance therein equal the Reserve Requirement. The receipt of or
failure to receive such notice by the Treasurer shall in no way affect the obligations of the
Treasurer under the following two paragraphs, Upon receipt of such notice, the Treasurer shall
communicate with the Auditor to ascertain the relevant parcels on which the Special Taxes are
to be levied, taking into account any parcel splits during the preceding and then current year,
The Treasurer shall effect the levy of the Special Taxes each Fiscal Year in accordance
with the Ordinance by each July 15 that the Bonds are outstanding, or otherwise such that the
computation of the levy is complete before the final date on which Auditor will accept the
transmission of the Special Tax amounts for the parcels within the District for inclusion on the
next real property tax roll, Upon the completion of the computation of the amounts of the levy,
the Treasurer shall prepare or cause to be prepared, and shall transmit to the Auditor, such
data as the Auditor requires to include the levy of the Special Taxes on the next real property
tax roll,
The Treasurer shall fix and levy the amount of Special Taxes within the District required
for the payment of principal of and interest on any outstanding Bonds of the District becoming
due and payable during the ensuing year, including any necessary replenishment or
expenditure of the Reserve Fund for the Bonds and an amount estimated to be sufficient to pay
the Administrative Expenses (including amounts necessary to discharge any obligation under
Section 5.13) during such year, taking into account the balances in such funds and in the
Special Tax Fund, The Special Taxes so levied shall not exceed the authorized amounts as
provided in the proceedings pursuant to the Resolution of Formation,
The Special Taxes shall be payable and be collected in the same manner and at the
same time and in the same installment as the general taxes on real property are payable, and
have the same priority, become delinquent at the same time and in the same proportionate
amounts and bear the same proportionate penalties and interest after delinquency as do the ad
valorem taxes on real property; provided that, pursuant to and in accordance with the
Ordinance, the Special Taxes may be collected by means of direct billing of the property
owners within the District, in which event the Special Taxes shall become delinquent if not paid
when due pursuant to said billing,
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Section 5,09, Covenant to Foreclose, Pursuant to Section 53356.1 of the Act, the
Authority hereby covenants with and for the benefit of the Owners of the Bonds that it will order,
and cause to be commenced as hereinafter provided, and thereafter diligently prosecute to
judgment (unless such delinquency is theretofore brought current), an action in the superior
court to foreclose the lien of any Special Tax or installment thereof not paid when due as
provided in the following paragraph, The Treasurer shall notify the Authority Attorney of any
such delinquency of which it is aware, and the Authority Attorney shall commence, or cause to
be commenced, such proceedings,
On or about February 15 and June 15 of each Fiscal Year, the Treasurer shall compare
the amount of Special Taxes theretofore levied in the District to the amount of Special Tax
Revenues theretofore received by the Authority, and:
(A) Individual Delinauencies, If the Treasurer determines that any single parcel
subject to the Special Tax in the District is delinquent in the payment of Special Taxes in
the aggregate amount of $2.500 or more, then the Treasurer shall send or cause to be
sent a notice of delinquency (and a demand for immediate payment thereof) to the
property owner within 45 days of such determination, and (if the delinquency remains
uncured) foreclosure proceedings shall be commenced by the Authority within 90 days
of such determination, Notwithstanding the foregoing, the Treasurer may defer such
action if the amount in the Reserve Fund is at least equal to the Reserve Requirement.
(B) Aaareaate Delinauencies, If the Treasurer determines that (i) the total
amount of delinquent Special Tax for the prior Fiscal Year for the entire District,
(including the total of delinquencies under subsection (A) above), exceeds 5% of the
total Special Tax due and payable for the prior Fiscal Year, or (ii) there are ten (10) or
fewer owners of real property within the District, determined by reference to the latest
available secured property tax roll of the County, the Treasurer shall notify or cause to
be notified property owners who are then delinquent in the payment of Special Taxes
(and demand immediate payment of the delinquency) within 45 days of such
determination, and the Authority shall commence foreclosure proceedings within 90
days of such determination against each parcel of land in the District with a Special Tax
delinquency,
The Treasurer and the Authority Attorney, as applicable, are hereby authorized to
employ counsel to conduct any such foreclosure proceedings, The fees and expenses of any
such counsel (including a charge for Authority staff time) in conducting foreclosure proceedings
shall be an Administrative Expense hereunder,
Section 5,10, Further Assurances, The Authority will adopt, make, execute and deliver
any and all such further resolutions, instruments and assurances as may be reasonably
necessary or proper to carry out the intention or to facilitate the performance of this Agreement,
and for the better assuring and confirming unto the Owners of the rights and benefits provided
in this Agreement.
Section 5,11, Private Activity Bond Limitations, The Authority shall assure that the
proceeds of the Bonds are not so used as to cause the Bonds to satisfy the private business
tests of section 141(b) of the Code or the private loan financing test of section 141(c) of the
Code,
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Section 5.12. Federal Guarantee Prohibition. The Authority shall not take any action or
permit or suffer any action to be taken if the result of the same would be to cause the Bonds to
be "federally guaranteed" within the meaning of Section 149(b) of the Code.
Section 5.13. Rebate Reauirement. The Authority shall take any and all actions
necessary to assure compliance with section 148(f) of the Code, relating to the rebate of
excess investment earnings, if any, to the federal government, to the extent that such section is
applicable to the Bonds.
If necessary, the Authority may use amounts in the Reserve Fund, amounts on deposit
in the Administrative Expense Fund, and any other funds available to the District, including
amounts advanced by the Authority or the City, in its respective sole discretion, to be repaid by
the District as soon as practicable from amounts described in the preceding clauses, to satisfy
its obligations under this Section 5.13. The Treasurer shall take note of any investment of
monies hereunder in excess of the yield on the Bonds, and shall take such actions as are
necessary to ensure compliance with this Section 5.13, such as increasing the portion of the
Special Tax levy for Administration Expenses as appropriate to have funds available in the
Administrative Expense Fund to satisfy any rebate liability under this Section 5.13.
Section 5.14. No Arbitraae. The Authority shall not take, or permit or suffer to be taken
by the Fiscal Agent or otherwise, any action with respect to the proceeds of the Bonds which, if
such action had been reasonably expected to have been taken, or had been deliberately and
intentionally taken, on the date of issuance of the Bonds would have caused the Bonds to be
"arbitrage bonds" within the meaning of section 148 of the Code.
Section 5.15. Yield of the Bonds. In determining the yield of the Bonds to comply with
Section 5.13 and 5.14 hereof, the Authority will take into account redemption (including
premium, if any) in advance of maturity based on the reasonable expectations of the Authority,
as of the Closing Date, regarding prepayments of Special Taxes and use of prepayments for
redemption of the Bonds, without regard to whether or not prepayments are received or Bonds
redeemed.
Section 5.16. Maintenance of Tax-Exemotion. The Authority shall take all actions
necessary to assure the exclusion of interest on the Bonds from the gross income of the
Owners of the Bonds to the same extent as such interest is permitted to be excluded from
gross income under the Code as in effect on the date of issuance of the Bonds.
Section 5.17. Continuina Disclosure to Owners. In addition to its obligations under
Section 9.07, the Authority hereby covenants and agrees that it will comply with and carry out
all of the provisions of the Continuing Disclosure Agreement. Notwithstanding any other
provision of this Agreement, failure of the Authority to comply with the Continuing Disclosure
Agreement shall not be considered a default hereunder; however, any Participating Underwriter
or any holder or Beneficial Owner (as defined in Section 2.13) of the Bonds may take such
actions as may be necessary and appropriate to compel performance by the Authority of its
obligations thereunder, including seeking mandate or specific performance by court order.
Two of the owners of the real property in the District as of the Closing Date have also
executed continuing disclosure agreements for the benefit of the holders and beneficial owners
of the Bonds. Any Participating Underwriter or holder or beneficial owner may take such
actions as may be necessary and appropriate directly against either such landowner to compel
performance by it of its obligations thereunder, including seeking mandate or specific
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performance by court order; however the Authority shall have no obligation whatsoever to
enforce any obligations under any such agreement.
Section 5.18. Reduction of Special Taxes. The Authority covenants and agrees to not
consent or conduct proceedings with respect to a reduction in the maximum Special Taxes that
may be levied in the District below an amount, for any Fiscal Year, equal to 110% of the
aggregate of the debt service due on the Bonds in such Fiscal Year, plus a reasonable estimate
of Administrative Expenses for such Fiscal Year. It is hereby acknowledged that Bondowners
are purchasing the Bonds in reliance on the foregoing covenant, and that said covenant is
necessary to assure the full and timely payment of the Bonds.
Section 5.19. Limits on Special Tax Waivers and Bond Tenders. The Authority
covenants not to exercise its rights under the Act to waive delinquency and redemption
penalties related to the Special Taxes or to declare Special Tax penalties amnesty program if to
do so would materially and adversely affect the interests of the owners of the Bonds and further
covenants not to permit the tender of Bonds in payment of any Special Taxes except upon
receipt of a certificate of an Independent Financial Consultant that to accept such tender will not
result in the Authority having insufficient Special Tax revenues to pay the principal of and
interest on the Bonds remaining Outstanding following such tender.
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ARTICLE VI
INVESTMENTS, DISPOSITION OF INVESTMENT PROCEEDS, LIABILITY OF
THE AUTHORITY
Section 6.01. Deposit and Investment of Monevs in Funds. Moneys in any fund or
account created or established by this Agreement and held by the Fiscal Agent shall be
invested by the Fiscal Agent in Permitted Investments, as directed pursuant to an Officer's
Certificate filed with the Fiscal Agent at least two (2) Business Days in advance of the making
of such investments. In the absence of any such Officer's Certificate, the Fiscal Agent shall
invest, to the extent reasonably practicable, any such moneys in Permitted Investments
described in clause (g) of the definition thereof in Section 1.03, which by their terms mature
prior to the date on which such moneys are required to be paid out hereunder. The Treasurer
shall make note of any investment of funds hereunder in excess of the yield on the Bonds, so
that appropriate actions can be taken to assure compliance with Section 5.13.
Moneys in any fund or account created or established by this Agreement and held by
the Treasurer shall be invested by the Treasurer in any Permitted Investment, which in any
event by their terms mature prior to the date on which such moneys are required to be paid out
hereunder. Obligations purchased as an investment of moneys in any fund shall be deemed to
be part of such fund or account, subject, however, to the requirements of this Agreement for
transfer of interest earnings and profits resulting from investment of amounts in funds and
accounts. Whenever in this Agreement any moneys are required to be transferred by the
Authority to the Fiscal Agent, such transfer may be accomplished by transferring a like amount
of Permitted Investments.
The Fiscal Agent and its affiliates or the Treasurer may act as sponsor, advisor,
depository, principal or agent in the acquisition or disposition of any investment. Neither the
Fiscal Agent nor the Treasurer shall incur any liability for losses arising from any investments
made pursuant to this Section. The Fiscal Agent shall not be required to determine the legality
of any investments.
Except as otherwise provided in the next sentence, all investments of amounts
deposited in any fund or account created by or pursuant to this Agreement, or otherwise
containing gross proceeds of the Bonds (within the meaning of section 148 of the Code) shall
be acquired, disposed of, and valued (as of the date that valuation is required by this
Agreement or the Code) at Fair Market Value. The Fiscal Agent shall have no duty in
connection with the determination of Fair Market Value other than to follow the investment
direction of an Authorized Officer in any written direction of any Authorized Officer. Investments
in funds or accounts (or portions thereof) that are subject to a yield restriction under the
applicable provisions of the Code and (unless valuation is undertaken at least annually)
investments in the subaccounts within the Reserve Fund shall be valued at their present value
(within the meaning of section 148 of the Code). The Fiscal Agent shall not be liable for
verification of the application of such sections of the Code.
Investments in any and all funds and accounts may be commingled in a separate fund
or funds for purposes of making, holding and disposing of investments, notwithstanding
provisions herein for transfer to or holding in or to the credit of particular funds or accounts of
amounts received or held by the Fiscal Agent or the Treasurer hereunder, provided that the
Fiscal Agent or the Treasurer, as applicable, shall at all times account for such investments
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strictly in accordance with the funds and accounts to which they are credited and otherwise as
provided in this Agreement.
The Fiscal Agent or the Treasurer, as applicable, shall sell at Fair Market Value, or
present for redemption, any investment security whenever it shall be necessary to provide
moneys to meet any required payment, transfer, withdrawal or disbursement from the fund or
account to which such investment security is credited and neither the Fiscal Agent nor the
Treasurer shall be liable or responsible for any loss resulting from the acquisition or disposition
of such investment security in accordance herewith.
The Authority acknowledges that to the extent regulations of the Comptroller of the
Currency or other applicable regulatory entity grant the Authority the right to receive brokerage
confirmations of security transactions as they occur, the Authority specifically waives receipt of
such confirmations to the extent permitted by law. The Fiscal Agent will furnish the Authority
periodic cash transaction statements which include detail for all investment transactions made
by the Fiscal Agent hereunder.
Section 6.02. Limited Obliaation. The Authority's obligations hereunder are limited
obligations of the Authority on behalf of the District and are payable solely from and secured
solely by the Special Tax Revenues and the amounts in the Special Tax Fund, the Bond Fund
(including the Special Tax Prepayments Account and the Capitalized Interest Account therein)
and the Reserve Fund created hereunder.
Section 6.03. Liabilitv of Authoritv. The Authority shall not incur any responsibility in
respect of the Bonds or this Agreement other than in connection with the duties or obligations
explicitly herein or in the Bonds assigned to or imposed upon it. The Authority shall not be
liable in connection with the performance of its duties hereunder, except for its own negligence
or willful default. The Authority shall not be bound to ascertain or inquire as to the performance
or observance of any of the terms, conditions covenants or agreements of the Fiscal Agent
herein or of any of the documents executed by the Fiscal Agent in connection with the Bonds,
or as to the existence of a default or event of default thereunder.
In the absence of bad faith, the Authority, including the Treasurer, may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Authority and conforming to the requirements of this
Agreement. The Authority, including the Treasurer, shall not be liable for any error of judgment
made in good faith unless it shall be proved that it was negligent in ascertaining the pertinent
facts.
No provision of this Agreement shall require the Authority to expend or risk its own
general funds or otherwise incur any financial liability (other than with respect to the Special Tax
Revenues) in the performance of any of its obligations hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that repayment of such funds
or adequate indemnity against such risk or liability is not reasonably assured to it.
The Authority and the Treasurer may rely and shall be protected in acting or refraining
from acting upon any notice, resolution, request, consent, order, certificate, report, warrant,
bond or other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or proper parties. The Authority may consult with counsel, who
may be the Authority Attorney, with regard to legal questions, and the opinion of such counsel
shall be full and complete authorization and protection in respect of any action taken or suffered
by it hereunder in good faith and in accordance therewith.
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The Authority shall not be bound to recognize any person as the Owner of a Bond
unless and until such Bond is submitted for inspection, if required, and his title thereto
satisfactory established, if disputed.
Whenever in the administration of its duties under this Agreement the Authority or the
Treasurer shall deem it necessary or desirable that a matter be proved or established prior to
taking or suffering any action hereunder, such matter (unless other evidence in respect thereof
be herein specifically prescribed) may, in the absence of willful misconduct on the part of the
Authority, be deemed to be conclusively proved and established by a certificate of the Fiscal
Agent, an Appraiser, an Independent Financial Consultant or a Tax Consultant, and such
certificate shall be full warrant to the Authority and the Treasurer for any action taken or
suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith
thereof, but in its discretion the Authority or the Treasurer may, in lieu thereof, accept other
evidence of such matter or may require such additional evidence as to it may seem reasonable.
Section 6.04. Emplovment of Aaents bv Authoritv. In order to perform its duties and
obligations hereunder, the Authority and/or the Treasurer may employ such persons or entities
as it deems necessary or advisable. The Authority shall not be liable for any of the acts or
omissions of such persons or entities employed by it in good faith hereunder, and shall be
entitled to rely, and shall be fully protected in doing so, upon the opinions, calculations,
determinations and directions of such persons or entities.
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ARTICLE VII
THE FISCAL AGENT
Section 7.01. Appointment of Fiscal Aaent. U.S. Bank National Association is hereby
appointed Fiscal Agent and paying agent for the Bonds. The Fiscal Agent undertakes to
perform such duties, and only such duties, as are specifically set forth in this Agreement, and
no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent.
Any company into which the Fiscal Agent may be merged or converted or with which it
may be consolidated or any company resulting from any merger, conversion or consolidation to
which it shall be a party or any company to which the Fiscal Agent may sell or transfer all or
substantially all of its corporate trust business, provided such company shall be eligible under
the following paragraph of this Section, shall be the successor to such Fiscal Agent without the
execution or filing of any paper or any further act, anything herein to the contrary
notwithstanding.
The Authority may at any time remove the Fiscal Agent initially appointed, and any
successor thereto, and may appoint a successor or successors thereto, but any such successor
shall be a bank, corporation or trust company having a combined capital (exclusive of borrowed
capital) and surplus of at least Fifty Million Dollars ($50,000,000), and subject to supervision or
examination by federal or state authority. If such bank, corporation or trust company publishes
a report of condition at least annually, pursuant to law or to the requirements of any supervising
or examining authority above referred to, then for the purposes of this Section 7.01, combined
capital and surplus of such bank or trust company shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published.
The Fiscal Agent may at any time resign by giving written notice to the Authority and by
giving to the Owners notice by mail of such resignation. Upon receiving notice of such
resignation, the Authority shall promptly appoint a successor Fiscal Agent by an instrument in
writing. Any resignation or removal of the Fiscal Agent shall become effective upon acceptance
of appointment by the successor Fiscal Agent.
If no appointment of a successor Fiscal Agent shall be made pursuant to the foregoing
provisions of this Section within forty-five (45) days after the Fiscal Agent shall have given to
the Authority written notice or after a vacancy in the office of the Fiscal Agent shall have
occurred by reason of its inability to act, the Fiscal Agent or any Owner may apply to any court
of competent jurisdiction to appoint a successor Fiscal Agent. Said court may thereupon, after
such notice, if any, as such court may deem proper, appoint a successor Fiscal Agent.
If, by reason of the judgment of any court, or reasonable agency, the Fiscal Agent is
rendered unable to perform its duties hereunder, all such duties and all of the rights and powers
of the Fiscal Agent hereunder shall be assumed by and vest in the Treasurer of the Authority in
trust for the benefit of the Owners. The Authority covenants for the direct benefit of the Owners
that its Treasurer in such case shall be vested with all of the rights and powers of the Fiscal
Agent hereunder, and shall assume all of the responsibilities and perform all of the duties of the
Fiscal Agent hereunder, in trust for the benefit of the Owners of the Bonds. In such event, the
Treasurer may designate a successor Fiscal Agent qualified to act as Fiscal Agent hereunder.
Section 7.02. Liabilitv of Fiscal Aaent. The recitals of facts, covenants and agreements
herein and in the Bonds contained shall be taken as statements, covenants and agreements of
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the Authority, and the Fiscal Agent assumes no responsibility for the correctness of the same,
or makes any representations as to the validity or sufficiency of this Agreement or of the Bonds,
or shall incur any responsibility in respect thereof, other than in connection with the duties or
obligations herein or in the Bonds assigned to or imposed upon it. The Fiscal Agent shall not
be liable in connection with the performance of its duties hereunder, except for its own
negligence or willful default. The Fiscal Agent assumes no responsibility or liability for any
information, statement or recital in any offering memorandum or other disclosure material
prepared or distributed with respect to the issuance of the Bonds.
In the absence of bad faith, the Fiscal Agent may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Fiscal Agent and conforming to the requirements of this Agreement; but in the
case of any such certificates or opinions by which any provision hereof are specifically required
to be furnished to the Fiscal Agent, the Fiscal Agent shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Agreement. Except as
provided above in this paragraph, Fiscal Agent shall be protected and shall incur no liability in
acting or proceeding, or in not acting or not proceeding, in good faith, reasonably and in
accordance with the terms of this Agreement, upon any resolution, order, notice, request,
consent or waiver, certificate, statement, affidavit, or other paper or document which it shall in
good faith reasonably believe to be genuine and to have been adopted or signed by the proper
person or to have been prepared and furnished pursuant to any provision of this Agreement,
and the Fiscal Agent shall not be under any duty to make any investigation or inquiry as to any
statements contained or matters referred to in any such instrument.
The Fiscal Agent shall not be liable for any error of judgment made in good faith unless
it shall be proved that the Fiscal Agent was negligent in ascertaining the pertinent facts.
No provision of this Agreement shall require the Fiscal Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers.
The Fiscal Agent shall be under no obligation to exercise any of the rights or powers
vested in it by this Agreement at the request or direction of any of the Owners pursuant to this
Agreement unless such Owners shall have offered to the Fiscal Agent reasonable security or
indemnity against the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction.
The Fiscal Agent may become the owner of the Bonds with the same rights it would
have if it were not the Fiscal Agent.
The Fiscal Agent shall have no duty or obligation whatsoever to enforce the collection of
Special Taxes or other funds to be deposited with it hereunder, or as to the correctness of any
amounts received, and its liability shall be limited to the proper accounting for such funds as it
shall actually receive.
In order to perform its duties and obligations hereunder, the Fiscal Agent may employ
such persons or entities as it deems necessary or advisable. The Fiscal Agent shall not be
liable for any of the acts or omissions of such persons or entities employed by it in good faith
hereunder, and shall be entitled to rely, and shall be fully protected in doing so, upon the
opinions, calculations, determinations and directions of such persons or entities.
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Section 7.03. Information. The Fiscal Agent shall provide to the Authority such
information relating to the Bonds and the funds and accounts maintained by the Fiscal Agent
hereunder as the Authority shall reasonably request, including but not limited to quarterly
statements reporting funds held and transactions by the Fiscal Agent.
Section 7.04. Notice to Fiscal Aaent. The Fiscal Agent may rely and shall be protected
in acting or refraining from acting upon any notice, resolution, request, consent, order,
certificate, report, warrant, bond or other paper or document believed in good faith by it to be
genuine and to have been signed or presented by the proper party or proper parties. The
Fiscal Agent may consult with counsel, who may be counsel to the Authority, with regard to
legal questions, and the opinion of such counsel shall be full and complete authorization and
protection in respect of any action taken or suffered by it hereunder in good faith and in
accordance therewith.
The Fiscal Agent shall not be bound to recognize any person as the Owner of a Bond
unless and until such Bond is submitted for inspection, if required, and his title thereto
satisfactorily established, if disputed.
Whenever in the administration of its duties under this Agreement the Fiscal Agent shall
deem it necessary or desirable that a matter be proved or established prior to taking or
suffering any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of willful misconduct on the part of the Fiscal
Agent, be deemed to be conclusively proved and established by an Officer's Certificate, and
such certificate shall be full warrant to the Fiscal Agent for any action taken or suffered under
the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in
its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such matter or may
require such additional evidence as to it may seem reasonable.
Section 7.05. Compensation. Indemnification. The Authority shall pay to the Fiscal
Agent from time to time reasonable compensation for all services rendered as Fiscal Agent
under this Agreement, and also all reasonable expenses, charges, counsel fees and other
disbursements, including those of their attorneys, agents and employees, incurred in and about
the performance of their powers and duties under this Agreement, but the Fiscal Agent shall not
have a lien therefor on any funds at any time held by it under this Agreement. The Authority
further agrees, to the extent permitted by applicable law, to indemnify and save the Fiscal
Agent, its officers, employees, directors and agents harmless against any costs, expenses,
claims or liabilities whatsoever, including without limitation fees and expenses of its attorneys,
which it may incur in the exercise and performance of its powers and duties hereunder which
are not due to its negligence or willful misconduct. The obligation of the Authority under this
Section shall survive resignation or removal of the Fiscal Agent under this Agreement and
payment of the Bonds and discharge of this Agreement, but any monetary obligation of the
Authority arising under this Section shall be limited solely to amounts on deposit in the
Administrative Expense Fund.
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ARTICLE VIII
MODIFICATION OR AMENDMENT OF THIS AGREEMENT
Section 8.01. Amendments Permitted. This Agreement and the rights and obligations
of the Authority and of the Owners of the Bonds may be modified or amended at any time by a
Supplemental Agreement pursuant to the affirmative vote at a meeting of Owners, or with the
written consent without a meeting, of the Owners of at least sixty percent (60%) in aggregate
principal amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in
Section 8.04. No such modification or amendment shall (i) extend the maturity of any Bond or
reduce the interest rate thereon, or otherwise alter or impair the obligation of the Authority to
pay the principal of, and the interest and any premium on, any Bond, without the express
consent of the Owner of such Bond, or (ii) permit the creation by the Authority of any pledge or
lien upon the Special Taxes superior to or on a parity with the pledge and lien created for the
benefit of the Owners of the Bonds (except as otherwise permitted by the Act, the laws of the
State of California or this Agreement), or (iii) reduce the percentage of Bonds required for the
amendment hereof. Any such amendment may not modify any of the rights or obligations of
the Fiscal Agent without its written consent.
This Agreement and the rights and obligations of the Authority and of the Owners may
also be modified or amended at any time by a Supplemental Agreement, without the consent of
any Owners, only to the extent permitted by law and only for anyone or more of the following
purposes:
(A) to add to the covenants and agreements of the Authority in this Agreement
contained, other covenants and agreements thereafter to be observed, or to limit or
surrender any right or power herein reserved to or conferred upon the Authority;
(B) to make modifications not adversely affecting any Outstanding series of
Bonds of the Authority in any material respect;
(C) to make such provisions for the purpose of curing any ambiguity, or of
curing, correcting or supplementing any defective provision contained in this Agreement,
or in regard to questions arising under this Agreement, as the Authority or the Fiscal
Agent may deem necessary or desirable and not inconsistent with this Agreement, and
which shall not adversely affect the rights of the Owners of the Bonds;
(0) to make such additions, deletions or modifications as may be necessary or
desirable to assure exemption from gross federal income taxation of interest on the
Bonds; and
(E) in connection with the issuance of Parity Bonds under and pursuant to
Section 2.14.
Section 8.02. Owners' Meetinas. The Authority may at any time call a meeting of the
Owners. In such event the Authority is authorized to fix the time and place of said meeting and
to provide for the giving of notice thereof, and to fix and adopt rules and regulations for the
conduct of said meeting.
Section 8.03. Procedure for Amendment with Written Consent of Owners. The
Authority and the Fiscal Agent may at any time adopt a Supplemental Agreement amending the
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provisions of the Bonds or of this Agreement or any Supplemental Agreement, to the extent that
such amendment is permitted by Section 8.01, to take effect when and as provided in this
Section. A copy of such Supplemental Agreement, together with a request to Owners for their
consent thereto, shall be mailed by first class mail, by the Fiscal Agent to each Owner of Bonds
Outstanding, but failure to mail copies of such Supplemental Agreement and request shall not
affect the validity of the Supplemental Agreement when assented to as in this Section provided.
Such Supplemental Agreement shall not become effective unless there shall be filed
with the Fiscal Agent the written consents of the Owners of at least sixty percent (60%) in
aggregate principal amount of the Bonds then Outstanding (exclusive of Bonds disqualified as
provided in Section 8.04) and a notice shall have been mailed as hereinafter in this Section
provided. Each such consent shall be effective only if accompanied by proof of ownership of
the Bonds for which such consent is given, which proof shall be such as is permitted by Section
9.04. Any such consent shall be binding upon the Owner of the Bonds giving such consent and
on any subsequent Owner (whether or not such subsequent Owner has notice thereof) unless
such consent is revoked in writing by the Owner giving such consent or a subsequent Owner by
filing such revocation with the Fiscal Agent prior to the date when the notice hereinafter in this
Section provided for has been mailed.
After the Owners of the required percentage of Bonds shall have filed their consents to
the Supplemental Agreement, the Authority shall mail a notice to the Owners in the manner
hereinbefore provided in this Section for the mailing of the Supplemental Agreement, stating in
substance that the Supplemental Agreement has been consented to by the Owners of the
required percentage of Bonds and will be effective as provided in this Section (but failure to mail
copies of said notice shall not affect the validity of the Supplemental Agreement or consents
thereto). Proof of the mailing of such notice shall be filed with the Fiscal Agent. A record,
consisting of the papers required by this Section 8.03 to be filed with the Fiscal Agent, shall be
proof of the matters therein stated until the contrary is proved. The Supplemental Agreement
shall become effective upon the filing with the Fiscal Agent of the proof of mailing of such
notice, and the Supplemental Agreement shall be deemed conclusively binding (except as
otherwise hereinabove specifically provided in this Article) upon the Authority and the Owners of
all Bonds at the expiration of sixty (60) days after such filing, except in the event of a final
decree of a court of competent jurisdiction setting aside such consent in a legal action or
equitable proceeding for such purpose commenced within such sixty-day period.
Section 8.04. Disaualified Bonds. Bonds owned or held for the account of the Authority,
excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of
any vote, consent or other action or any calculation of Outstanding Bonds provided for in this
Article VIII, and shall not be entitled to vote upon, consent to, or take any other action provided
for in this Article VIII; provided, however, that the Fiscal Agent shall not be deemed to have
knowledge that any Bond is owned or held by the Authority unless the Authority is the
registered Owner or the Fiscal Agent has received written notice that any other registered
Owner is an Owner for the account of the Authority.
Section 8.05. Effect of Supplemental Aareement. From and after the time any
Supplemental Agreement becomes effective pursuant to this Article VIII, this Agreement shall
be deemed to be modified and amended in accordance therewith, the respective rights, duties
and obligations under this Agreement of the Authority and all Owners of Bonds Outstanding
shall thereafter be determined, exercised and enforced hereunder subject in all respects to
such modifications and amendments, and all the terms and conditions of any such
Supplemental Agreement shall be deemed to be part of the terms and conditions of this
Agreement for any and all purposes.
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Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments. The
Authority may determine that Bonds issued and delivered after the effective date of any action
taken as provided in this Article VIII shall bear a notation, by endorsement or otherwise, in form
approved by the Authority, as to such action. In that case, upon demand of the Owner of any
Bond Outstanding at such effective date and presentation of his Bond for that purpose at the
Principal Office of the Fiscal Agent or at such other office as the Authority may select and
designate for that purpose, a suitable notation shall be made on such Bond. The Authority may
determine that new Bonds, so modified as in the opinion of the Authority is necessary to
conform to such Owners' action, shall be prepared, executed and delivered. In that case, upon
demand of the Owner of any Bonds then Outstanding, such new Bonds shall be exchanged at
the Principal Office of the Fiscal Agent without cost to any Owner, for Bonds then Outstanding,
upon surrender of such Bonds.
Section 8.07. Amendatorv Endorsement of Bonds. The provisions of this Article VIII
shall not prevent any Owner from accepting any amendment as to the particular Bonds held by
him, provided that due notation thereof is made on such Bonds.
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ARTICLE IX
MISCELLANEOUS
Section 9.01. Benefits of Aareement Limited to Parties. Nothing in this Agreement,
expressed or implied, is intended to give to any person other than the Authority, the Fiscal
Agent and the Owners, any right, remedy, claim under or by reason of this Agreement. Any
covenants, stipulations, promises or agreements in this Agreement contained by and on behalf
of the Authority shall be for the sole and exclusive benefit of the Owners and the Fiscal Agent.
Section 9.02. Successor is Deemed Included in All References to Predecessor.
Whenever in this Agreement or any Supplemental Agreement either the Authority or the Fiscal
Agent is named or referred to, such reference shall be deemed to include the successors or
assigns thereof, and all the covenants and agreements in this Agreement contained by or on
behalf of the Authority or the Fiscal Agent shall bind and inure to the benefit of the respective
successors and assigns thereof whether so expressed or not.
Section 9.03. Discharae of Aareement. The Authority shall have the option to pay and
discharge the entire indebtedness on all or any portion of the Bonds Outstanding in anyone or
more of the following ways:
(A) by well and truly paying or causing to be paid the principal of, and interest
and any premium on, such Bonds Outstanding, as and when the same become due and
payable;
(B) by depositing with the Fiscal Agent, in trust, at or before maturity, money
which, together with the amounts then on deposit in the funds and accounts provided for
in Sections 4.04 and 4.05 is fully sufficient to pay such Bonds Outstanding, including all
principal, interest and redemption premiums; or
(C) by irrevocably depositing with the Fiscal Agent, in trust, cash and Federal
Securities in such amount as the Authority shall determine as confirmed by Bond
Counselor an independent certified public accountant will, together with the interest to
accrue thereon and moneys then on deposit in the fund and accounts provided for in
Sections 4.04 and 4.05, be fully sufficient to pay and discharge the indebtedness on
such Bonds (including all principal, interest and redemption premiums) at or before their
respective maturity dates.
If the Authority shall have taken any of the actions specified in (A), (B) or (C) above, and
if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall
have been given as in this Agreement provided or provision satisfactory to the Fiscal Agent
shall have been made for the giving of such notice, then, at the election of the Authority, and
notwithstanding that any Bonds shall not have been surrendered for payment, the pledge of the
Special Taxes and other funds provided for in this Agreement and all other obligations of the
Authority under this Agreement with respect to such Bonds Outstanding shall cease and
terminate. Notice of such election shall be filed with the Fiscal Agent. Notwithstanding the
foregoing, the obligation of the Authority to payor cause to be paid to the Owners of the Bonds
not so surrendered and paid all sums due thereon, all amounts owing to the Fiscal Agent
pursuant to Section 7.05, and otherwise to assure that no action is taken or failed to be taken if
such action or failure adversely affects the exclusion of interest on the Bonds from gross
income for federal income tax purposes, shall continue in any event.
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Upon compliance by the Authority with the foregoing with respect to all Bonds
Outstanding, any funds held by the Fiscal Agent after payment of all fees and expenses of the
Fiscal Agent, which are not required for the purposes of the preceding paragraph, shall be paid
over to the Authority and any Special Taxes thereafter received by the Authority shall not be
remitted to the Fiscal Agent but shall be retained by the Authority to be used for any purpose
permitted under the Act.
Section 9.04. Execution of Documents and Proof of Ownership bv Owners. Any
request, declaration or other instrument which this Agreement may require or permit to be
executed by Owners may be in one or more instruments of similar tenor, and shall be executed
by Owners in person or by their attorneys appointed in writing.
Except as otherwise herein expressly provided, the fact and date of the execution by
any Owner or his attorney of such request, declaration or other instrument, or of such writing
appointing such attorney, may be proved by the certificate of any notary public or other officer
authorized to take acknowledgments of deeds to be recorded in the state in which he purports
to act, that the person signing such request, declaration or other instrument or writing
acknowledged to him the execution thereof, or by an affidavit of a witness of such execution,
duly sworn to before such notary public or other officer.
Except as otherwise herein expressly provided, the ownership of registered Bonds and
the amount, maturity, number and date of holding the same shall be proved by the registry
books.
Any request, declaration or other instrument or writing of the Owner of any Bond shall
bind all future Owners of such Bond in respect of anything done or suffered to be done by the
Authority or the Fiscal Agent in good faith and in accordance therewith.
Section 9.05. Waiver of Personal Liabilitv. No director, Council member, officer, official,
agent or employee of the Authority, the City or the District shall be individually or personally
liable for the payment of the principal of, or interest or any premium on, the Bonds; but nothing
herein contained shall relieve any such director, Council member, officer, official, agent or
employee from the performance of any official duty provided by law.
Section 9.06. Notices to and Demands on Authoritv and Fiscal Aaent. Any notice or
demand which by any provision of this Agreement is required or permitted to be given or served
by the Fiscal Agent to or on the Authority may be given or served by being deposited postage
prepaid in a post office letter box addressed (until another address is filed by the Authority with
the Fiscal Agent) as follows:
Temecula Public Financing Authority
c/o City of Temecula
43200 Business Park Drive
Temecula, CA 92590
Attn: Treasurer
Any notice or demand which by any provision of this Agreement is required or permitted
to be given or served by the Authority to or on the Fiscal Agent may be given or served by
being deposited postage prepaid in a post office letter box addressed (until another address is
filed by the Fiscal Agent with the Authority) as follows (provided that any such notice shall not
be effective until actually received by the Fiscal Agent):
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U.S. Bank National Association
550 South Hope Street, Suite 500
Los Angeles, CA 90071
Attention: Corporate Trust Department
Reference: Temecula PFAlCrowne Hill
Section 9.07. State Reportina Reauirements. The following requirements shall apply to
the Bonds, in addition to those requirements under Section 5.17:
(A) Annual Reportina. Not later than October 30 of each calendar year,
beginning with the October 30 first succeeding the date of the Bonds, and in each
calendar year thereafter until the October 30 following the final maturity of the Bonds,
the Treasurer shall cause the following information to be supplied to CD lAC: (i) the
principal amount of the Bonds Outstanding; (i1) the balance in the Reserve Fund; (iii) the
balance, if any, in the Capitalized Interest Account; (iv) the number of parcels in the
District which are delinquent in the payment of Special Taxes, the amount of each
delinquency, the length of time delinquent and when foreclosure was commenced for
each delinquent parcel; (v) the balances in the accounts within the Improvement Fund;
and (vi) the assessed value of all parcelS in the District subject to the levy of the Special
Taxes as shown in most recent equalized roll. The annual reporting shall be made
using such form or forms as may be prescribed by CDIAC.
(B) Other Reportina. If at any time the Fiscal Agent fails to pay principal and
interest due on any scheduled payment date for the Bonds, or if funds are withdrawn
from the Reserve Fund to pay principal and interest on the Bonds, the Fiscal Agent shall
notify the Treasurer of such failure or withdrawal in writing. The Treasurer shall notify
CDIAC and the Original Purchaser of such failure or withdrawal within 10 days of such
failure or withdrawal.
(C) Special Tax Reportina. The Treasurer shall file a report with the Authority
no later than January 1, 2004, and at least once a year thereafter, which annual report
shall contain: (i) the amount of Special Taxes collected and expended with respect to
the District, (ii) the amount of Bond proceeds collected and expended with respect to the
District, and (iii) the status of the Project. It is acknowledged that the Special Tax Fund
and the Special Tax Prepayments Account are the accounts into which Special Taxes
collected on the District will be deposited for purposes of Section 50075.1 (c) of the
California Government Code, and the funds and accounts listed in Section 4.01 are the
funds and accounts into which Bond proceeds will be deposited for purposes of Section
53410(c) of the California Government Code, and the annual report described in the
preceding sentence is intended to satisfy the requirements of Sections 50075.1 (d),
50075.3(d) and 53411 of the California Government Code.
(D) Amendment. The reporting requirements of this Section 9.07 shall be
amended from time to time, without action by the Authority or the Fiscal Agent (i) with
respect to subparagraphs (A) and (B) above, to reflect any amendments to Section
53359.5(b) or Section 53359.5(c) of the Act, and (ii) with respect to subparagraph (C)
above, to reflect any amendments to Section 50075.1, 50075.3, 53410 or 53411 of the
California Government Code. Notwithstanding the foregoing, any such amendment
shall not, in itself, affect the Authority's obligations under the Continuing Disclosure
Agreement. The Authority shall notify the Fiscal Agent in writing of any such
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amendments which affect the reporting obligations of the Fiscal Agent under this
Agreement.
(E) No Liabilitv. None of the Authority and its officers, agents and employees,
the Treasurer or the Fiscal Agent shall be liable for any inadvertent error in reporting the
information required by this Section 9.07.
The Treasurer shall provide copies of any of such reports to any Bondowner upon the
written request of a Bondowner and payment by the person requesting the information of the
cost of the Authority to produce such information and pay any postage or other delivery cost to
provide the same, as determined by the Treasurer. The term "Bondowner" for purposes of this
Section 9.07 shall include any beneficial owner of the Bonds.
Section 9.08. Partiallnvaliditv. If any Section, paragraph, sentence, clause or phrase of
this Agreement shall for any reason be held illegal or unenforceable, such holding shall not
affect the validity of the remaining portions of this Agreement. The Authority hereby declares
that it would have adopted this Agreement and each and every other Section, paragraph,
sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto
irrespective of the fact that anyone or more Sections, paragraphs, sentences, clauses, or
phrases of this Agreement may be held illegal, invalid or unenforceable.
Section 9.09. Unclaimed Monevs. Anything contained herein to the contrary
notwithstanding, any moneys held by the Fiscal Agent in trust for the payment and discharge of
the principal of, and the interest and any premium on, the Bonds which remains unclaimed for
two (2) years after the date when the payments of such principal, interest and premium have
become payable, if such moneys was held by the Fiscal Agent at such date, shall be repaid by
the Fiscal Agent to the Authority as its absolute property free from any trust, and the Fiscal
Agent shall thereupon be released and discharged with respect thereto and the Owners shall
look only to the Authority for the payment of the principal of, and interest and any premium on,
such Bonds.
Section 9.10. Applicable Law. This Agreement shall be governed by and enforced in
accordance with the laws of the State of California applicable to contracts made and performed
in the State of California.
Section 9.11. Conflict with Act. In the event of a conflict between any provision of this
Agreement with any provision of the Act as in effect on the Closing Date, the provision of the
Act shall prevail over the conflicting provision of this Agreement.
Section 9.12. Conclusive Evidence of Reaularitv. Bonds issued pursuant to this
Agreement shall constitute conclusive evidence of the regularity of all proceedings under the
Act relative to their issuance and the levy of the Special Taxes.
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Section 9.13. Pavment on Business Dav. In any case where the date of the maturity of
interest or of principal (and premium, if any) of the Bonds or the date fixed for redemption of
any Bonds or the date any action is to be taken pursuant to this Agreement is other than a
Business Day, the payment of interest or principal (and premium, if any) or the action need not
be made on such date but may be made on the next succeeding day which is a Business Day
with the same force and effect as if made on the date required and no interest shall accrue for
the period from and after such date.
Section 9.14. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original.
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IN WITNESS WHEREOF, the Authority caused this Fiscal Agent Agreement to be
executed all as of June 1, 2003.
TEMECULA PUBLIC FINANCING
AUTHORITY, for and on behalf of
TEMECULA PUBLIC FINANCING
AUTHORITY COMMUNITY FACILITIES
DISTRICT NO. 03-1 (CROWNE HILL)
By:
Executive Director
U.S. BANK NATIONAL ASSOCIATION,
as Fiscal Agent
By:
Authorized Officer
20009.04:J6653
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EXHIBIT A
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
No.
$
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03.1
(CROWNE HILL)
SPECIAL TAX BOND, SERIES 2003-A
INTEREST RATE
MATURITY DATE
September 1,
BOND DATE
Julv , 2003
CUSIP
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
The Temecula Public Financing Authority (the "Authority") for and on behalf of the
Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne Hill) (the
"District"), for value received, hereby promises to pay solely from the Special Tax (as
hereinafter defined) to be collected in the District or amounts in the funds and accounts held
under the Agreement (as hereinafter defined), to the registered owner named above, or
registered assigns, on the maturity date set forth above, unless redeemed prior thereto as
hereinafter provided, the principal amount set forth above, and to pay interest on such principal
amount from the Bond Date set forth above, or from the most recent interest payment date to
which interest has been paid or duly provided for, semiannually on March 1 and September 1,
commencing September 1, 2003, at the interest rate set forth above, until the principal amount
hereof is paid or made available for payment. The principal of this Bond is payable to the
registered owner hereof in lawful money of the United States of America upon presentation and
surrender of this Bond at the Principal Office (as defined in the Agreement referred to below) of
u.s. Bank National Association (the "Fiscal Agent"). Interest on this Bond shall be paid by
check of the Fiscal Agent mailed on each interest payment date to the registered owner hereof
as of the close of business on the 15th day of the month preceding the month in which the
interest payment date occurs (the "Record Date") at such registered owner's address as it
appears on the registration books maintained by the Fiscal Agent, or (i) if the Bonds are in
book-entry-only form, or (ii) otherwise upon written request filed with the Fiscal Agent prior to
any Record Date by a registered owner of at least $1,000,000 in aggregate principal amount of
Bonds, by wire transfer in immediately available funds to the depository for the Bonds or to an
account in the United States designated by such registered owner in such written request,
respectively.
This Bond is one of a duly authorized issue of bonds approved by the qualified electors
of the District pursuant to the Mello-Roos Community Facilities Act of 1982, as amended,
Sections 53311, et seq., of the California Government Code (the "Mello-Roos Act") for the
A-I
purpose of financing certain public facilities within and in the vicinity of the District (the "Project")
and to eliminate a lien on property in the District, and is one of the first series of such bonds
designated ''Temecula Public Financing Authority Community Facilities District No. 03-1
(Crowne Hill) Special Tax Bonds, Series 2003-A" (the "Bonds") in the aggregate principal
amount of $ . The creation of the Bonds and the terms and conditions thereof are
provided for by resolution adopted by the Board of Directors of the Authority on June 24, 2003
(the "Resolution"), and the Fiscal Agent Agreement, dated as of June 1, 2003, between the
Authority and the Fiscal Agent (the "Agreement") and this reference incorporates the Resolution
and the Agreement herein, and by acceptance hereof the owner of this Bond assents to said
terms and conditions. Pursuant to and as more particularly provided in the Resolution and in
the Agreement, additional bonds may be issued by the Authority from time to time not to exceed
the aggregate principal amount of $ secured by a lien on funds held under the
Agreement on a parity with the lien securing the Bonds. The Resolution is adopted and the
Agreement is entered into under and this Bond is issued under, and all are to be construed in
accordance with, the laws of the State of California.
Pursuant to the Mello-Roos Act, the Agreement and the Resolution, the principal of and
interest on this Bond are payable solely from the annual special tax authorized under the Mello-
Roos Act to be collected within the District (the "Special Tax") and certain funds held under the
Agreement.
Interest on this Bond shall be payable from the interest payment date next preceding the
date of authentication hereof, unless (i) it is authenticated on an interest payment date, in which
event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an
interest payment date and after the close of business on the Record Date preceding such
interest payment date, in which event it shall bear interest from such interest payment date, or
(iii) it is authenticated prior to the Record Date preceding the first interest payment date, in
which event it shall bear interest from the Bond Date set forth above; provided, however, that if
at the time of authentication of this Bond, interest is in default hereon, this Bond shall bear
interest from the interest payment date to which interest has previously been paid or made
available for payment hereon.
Any tax for the payment hereof shall be limited to the Special Tax, except to the extent
that provision for payment has been made by the Authority, as may be permitted by law. The
Bonds do not constitute obligations of the Authority for which the Authority is obligated to levy or
pledge, or has levied or pledged, general or special taxation other than described hereinabove.
The City of Temecula has no liability or obligations whatsoever with respect to the Bonds or the
Agreement.
The Bonds are subject to redemption prior to their stated maturity on any interest
payment date, as a whole or in part among maturities as provided in the Agreement, at a
redemption price (expressed as a percentage of the principal amount of the Bonds to be
redeemed), as set forth below, together with accrued interest thereon to the date fixed for
redemption:
Redemption Dates
September 1, 2012 and March 1, 2013
September 1, 2013 and any interest payment
date thereafter
Redemption Prices
102%
100
The Bonds maturing on September 1, _' are subject to mandatory sinking payment
redemption in part on September 1, _ and on each September 1 thereafter to maturity, by
A-2
lot, at a redemption price equal to the principal amount thereof to be redeemed, together with
accrued interest to the date fixed for redemption, without premium, from sinking payments as
follows:
Redemption Date
(September 1)
Sinkina Pavments
The Bonds maturing on September 1, _' are subject to mandatory sinking payment
redemption in part on September 1, _ and on each September 1 thereafter to maturity, by
lot, at a redemption price equal to the principal amount thereof to be redeemed, together with
accrued interest to the date fixed for redemption, without premium, from sinking payments as
follows:
Redemption Date
(September 1)
Sinkina Pavments
The Bonds are also subject to redemption from the proceeds of Special Tax
Prepayments and any corresponding transfers from the Reserve Fund pursuant to the
Agreement, on any Interest Payment Date, among maturities as specified in the Agreement and
by lot within a maturity, at a redemption price (expressed as a percentage at the principal
amount of the Bonds to be redeemed), as set forth below, together with accrued interest to the
date fixed for redemption:
Redemption Dates
Any interest payment date from September 1,
2003 to and including March 1,2013
September 1, 2013 and any interest payment
date thereafter
Redemption Prices
102%
100
A-3
Notice of redemption with respect to the Bonds to be redeemed shall be given to the
registered owners thereof, in the manner, to the extent and subject to the provisions of the
Agreement.
This Bond shall be registered in the name of the owner hereof, as to both principal and
interest.
Each registration and transfer of registration of this Bond shall be entered by the Fiscal
Agent in books kept by it for this purpose and authenticated by its manual signature upon the
certificate of authentication endorsed hereon.
No transfer or exchange hereof shall be valid for any purpose unless made by the
registered owner, by execution of the form of assignment endorsed hereon, and authenticated
as herein provided, and the principal hereof, interest hereon and any redemption premium shall
be payable only to the registered owner or to such owner's order. The Fiscal Agent shall
require the registered owner requesting transfer or exchange to pay any tax or other
governmental charge required to be paid with respect to such transfer or exchange. No
transfer or exchange hereof shall be required to be made (i) fifteen days prior to the date
established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond
after such Bond has been selected for redemption, or (iii) between a Record Date and the
succeeding interest payment date. Exchanges may only be made for Bonds in authorized
denominations, as provided in the Agreement.
The Agreement and the rights and obligations of the Authority thereunder may be
modified or amended as set forth therein.
The Bonds are not general obligations of the Authority, but are limited obligations
payable solely from the revenues and funds pledged therefor under the Agreement. Neither the
faith and credit of the Authority or the State of California or any political subdivision thereof is
pledged to the payment of the Bonds.
This Bond shall not become valid or obligatory for any purpose until the certificate of
authentication and registration hereon endorsed shall have been dated and signed by the Fiscal
Agent.
Unless this Bond is presented by an authorized representative of The Depository Trust
Company to the Fiscal Agent for registration of transfer, exchange or payment, and any Bond
issued is registered in the name of Cede & Co. or such other name as requested by an
authorized representative of The Depository Trust Company and any payment is made to Cede
& Co., ANY TRANSFER. PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has
an interest herein.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and
things required by law to exist, happen and be performed precedent to and in the issuance of
this Bond have existed, happened and been performed in due time, form and manner as
required by law, and that the amount of this Bond does not exceed any debt limit prescribed by
the laws or Constitution of the State of California.
A-4
IN WITNESS WHEREOF, Temecula Public Financing Authority has caused this Bond to
be dated the Bond Date set forth above, to be signed by the facsimile signature of its Chairman
and countersigned by the facsimile signature of its Secretary.
TEMECULA PUBLIC FINANCING
AUTHORITY
[SEAL]
Chairman
ATTEST
Secretary
A-5
FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION
This is one of the Bonds described in the Resolution and in the Agreement which has
been authenticated on
U.S. Bank National Association, as Fiscal
Agent
By:
Authorized Signatory
A-6
ASSIGNMENT
For value received the undersigned hereby sells, assigns and transfers unto
Dated:
Signature Guaranteed:
Signature:
Note: Signature(s) must be guaranteed by an eligible
guarantor.
Note: The signature(s) on this Assignment must
correspond with the name(s) as written on
the face of the within Bond in every particular
without alteration or enlargement or any
change whatsoever.
A-7
PRELIMINARY OFFICIAL STATEMENT DATED JUNE _, 2003
NEW ISSUE
NOT RATED
In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however, to certain qualifications
described herein. under existing law, until any Conversion Date with respect thereto. the interest on the 2003 Bonds is excluded from gross
income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on
individuals and corporations; it should be noted, however. that, for the purpose of computing the alternative minimum tax imposed on
corporations (as defined for federal income tax purposes), such interest is taken into account in determining certain income and earnings. Bond
Counsel is also of/he opinion that under existing law the interest on the 2003 Bonds is exemptfrom personal income taxation imposed by the
State of California. See "LEGAL MATTERS - Tax Exemption" herein.
$11,985,000'
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1
(CROWNE HILL)
SPECIAL TAX BONDS, SERIES 2003-A
Dated: Date of Delivery Due: September I, as shown below
The Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne Hill) Special Tax Bonds, Series 2003-A
(the "2003 Bonds") are being issued under the MelIo-Roos Community Facilities Act of 1982 (the "Act") and a Fiscal Agent Agreement, dated
as of June 1,2003, by and between the Temecula Public Financing Authority (the "Authority") and U.S. Bank National Association, as Fiscal
Agent (the "Fiscal Agent"), and are payable from proceeds of Special Taxes (as defined herein) levied on property within the Temecula Public
Financing Authority Community Facilities District No. 03-1 (Crowne Hill) (the "District") according to the rate and method of apportionment
of special tax approved by the qualified electors of the District and by the Authority, acting as the legislative body of the District.
The 2003 Bonds are being issued (i) to finance the acquisition and construction of certain street and signal improvements, storm drain
improvements, sewer and water improvement, fire protection improvements and park and recreation improvements (collectively, the
"Improvements") within or in the vicinity of the District, (ii) to eliminate an existing special assessment lien (the "Prior Lien") on parcels in
the District, (iii) to pay interest on the 2003 Bonds through September 1,2003, (iv) to pay certain administrative expenses of the District (v)
to pay the costs of issuing the 2003 Bonds and (vi) to establish a Reserve Fund for the 2003 Bonds. See "ESTIMATED SOURCES AND USES
OF FUNDS" and "PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OF THE 2003 BONDS" herein.
The 2003 Bonds will be issued in denominations of$5,000 or integral multiples in excess thereof. The 2003 Bonds, when delivered,
will be initially registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), New York, New York. DTC
will act as securities depository for the 2003 Bonds as described herein under "THE 2003 BONDS - Book-Entry and DTC."
The 2003 Bonds are subject to optional redemption, mandatory redemption from prepayment of Special Taxes and mandatory
redemption as described herein.
THE 2003 BONDS, THE INTEREST THEREON, AND ANY PREMIUMS PAYABLE ON THE REDEMPTION OF ANY
OF THE 2003 BONDS, ARE NOT AN INDEBTEDNESS OF THE AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED
EXTENT SET FORTH IN THE FISCAL AGENT AGREEMENT), THE STATE OF CALIFORNIA (THE "STATE") OR ANY OF
ITS POLITICAL SUBDIVISIONS, AND NEITHER THE AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED EXTENT
SET FORTH IN THE FISCAL AGENT AGREEMENT), THE STATE NORANY OF ITS POLITICAL SUBDIVISIONS IS LIABLE
ON THE 2003 BONDS. NEITHER THE FAITH ANP CREDIT NOR THE TAXING POWER OF THE AUTHORITY, THE
DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE FISCAL AGENT AGREEMENT) OR THE STATE OR
ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE 2003 BONDS. OTHER THAN THE
SPECIAL TAXES LEVIED WITHIN THE DISTRICT, NO TAXES ARE PLEDGED TO THE PAYMENT OF THE 2003 BONDS.
THE 2003 BONDS ARE NOT A GENERAL OBLIGATION OF THE AUTHORITY OR THE DISTRICT, BUT ARE LIMITED
OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM THE SOURCES PROVIDED IN THE FISCAL AGENT
AGREEMENT.
This cover page contains certain informationfor quick reference only. It is not a summary of the issue. Potential investors must
read the entire Official Statement to obtain information essential to the making of an informed investment decision with respect to the 2003
Bonds. Investment in the 2003 Bonds involves risks which may not be appropriate for some investors. See "BONDOWNERS'RISKS"
herein/or a discussion o/special risk factors that should be considered in evaluating the investment quality of the 2003 Bonds.
The 2003 Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to their legality by Quint
& Thimmig LLP, San Francisco, California, Bond Counsel, and subject to certain other conditions. McFarlin & Anderson LLP, Lake Forest,
California is acting as Disclosure CounseL Certain legal matters will be passed on for the Authority and the District by Richards, Watson &
Gershon, Los Angeles, California, the City Attorney. Certain legal matters will be passed on for the Lennar Homes of California, Inc. by
Pillsbury Winthrop LLP, Los Angeles, California. It is anticipated that the 2003 Bonds, in book-entry form, will be available for delivery to
DTC in New York, New York on or about July _,2003.
Stone & Youngberg LLC
Dated: July ~ 2003
*Prelirninary, subject to change.
MATURITY SCHEDULE'
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1
(CROWNE HILL)
SPECIAL TAX BONDS, SERIES 2003-A
$
Serial Bonds
Base CUSIP No.
Maturity
(September 1)
2005
2006
2007
2008
2009
2010
2011
2012
2013
Principal
Interest
CUSIP.
Amount
Rate
Price
No.
Maturity
(September I)
2014
2015
2016
2017
2018
2019
2020
2021
2022
Principal
Interest
CUSIP.
Amount
Rate
Price
No.
$
%
%
$
%
%
$
% Tenn 2003 Bonds due September 1,2033, Price _% CUSIPNo.
The following language to be inserted by the printer, in red, at the top of the POS front cover:
PRELIMINARY OFFICIAL STATEMENT DATED JUNE _, 2003
The following language to be inserted by the printer, in red, vertically along the left margin of the POS front cover:
This Preliminary Official Statement and the information contained herein are subject to completion or amendment.
Under no circwnstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer
to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
.
Preliminary, subject to change.
.. Copyright 2002, American Bankers Association. CUSIP data herein is provided by Standard & Poor's, CUSIP
Service Bureau, a division of The McGraw-Hill Companies, Inc. This data is not intended to create a database
and does not serve in any way as a substitute for the CUSIP Services.
TEMECULA PUBLIC FINANCING AUTHORITY
BOARD OF DIRECTORS
Jeff Stone, Chairperson
Michael S. Naggar, Vice Chairperson
JeffComerchero, Member
Albert "Sam" Pratt, Member
Ron Roberts, Member
AUTHORITY STAFF
Shawn Nelson, Executive Director and City Manager
Genie Roberts, Authority Treasurer and City Finance Director
Susan Jones, Authority Secretary and City Clerk
SPECIAL SERVICES
Bond Counsel
Quint & Thimmig LLP
San Francisco, California
Authority Counsel
Richards, Watson & Gershon
A Professional Corporation
Los Angeles, California
Disclosure Counsel
McFarlin & Anderson LLP
Lake Forest, California
Special Tax Consultant
Albert A. Webb Associates
Riverside, California
Financial Advisor to the Authority
Fieldman, Rolapp & Associates
Irvine, California
Fiscal Agent
U.S. Bank National Association
Los Angeles, California
Appraiser
Stephen G. White, MAl
Fullerton, California
Market Consultant
Empire Economics, LLC
Capistrano Beach, California
NO DEALER, BROKER, SALESPERSON OR ANY OTHER PERSON HAS BEEN
AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION WITH RESPECT
TO THE 2003 BONDS, OTHER THAN AS CONTAINED IN THIS OFFICIAL STATEMENT, AND, IF
GIVEN OR MADE, ANY SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED
UPON AS HAVING BEEN AUTHORIZED BY THE AUTHORITY, THE DISTRICT OR THE
UNDERWRITER. THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE AN OFFER OF ANY
SECURITIES OTHER THAN THOSE DESCRIBED ON THE COVER PAGE OR AN OFFER TO SELL
ORA SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY OFFER, SOLICITATION
OR SALE OF THE 2003 BONDS BY ANY PERSON IN ANY JURISDICTION IN WHICH IT IS
UNLAWFUL TO MAKE SUCH OFFER, SOLICITATION OR SALE. THIS OFFICIAL STATEMENT
IS NOT TO BE CONSTRUED AS A CONTRACT WITH THE PURCHASERS OF THE 2003 BONDS.
Statements contained in this Official Statement which involve time estimates, forecasts or matters
of opinion, whether or not expressly so described herein, are intended solely as such and are not to be
construed as representations of fact. The information set forth herein has been furnished by the Authority,
the District, or other sources which are believed to be reliable, but it is not guaranteed as to accuracy or
completeness. The Underwriter has provided the following sentence for incluslOn 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.
The information and expressions of opinion herein are subject to change without notice and neither the
delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any
implication that there has been no change in the affairs of the District or any other entity described herein
since the date hereof.
This Official Statement is submitted in connection with the sale of securities referred to herein and
may not be reproduced or be used, as a whole or in part, for any other purpose.
IN CONNECTION WITH THE OFFERING OF THE 2003 BONDS, THE UNDERWRITER MAY
OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET
PRICE OF THE 2003 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL
IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAYBE DISCONTINUED AT
ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE 2003 BONDS TO CERTAIN
DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AND OTHERS AT PRICES
LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND
SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE
UNDERWRITER.
THE 2003 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACTOF 1933,
AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE 2003
BONDS HA VENOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY
STATE.
TABLE OF CONTENTS
Page
INTRODUCTION ....... . . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . . . .. . . . .. . . . . . .. . .. I
General ..................................................................... I
The Authority ................................................................ I
The Community Facilities District ................................................ I
Purpose of the 2003 Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2
Sources of Payment for the 2003 Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2
Appraisal. . . .. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . . . . . .. 3
Tax Exemption ............................................................... 4
Risk Factors Associated with Purchasing the 2003 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
Forward Looking Statements .................................................... 4
Professionals Involved in the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
CONTINUING DISCLOSURE ........................................................ 5
PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED
WITH PROCEEDS OF THE 2003 BONDS ........................................ 6
ESTIMATED SOURCES AND USES OF FUNDS ......................................... 7
THE 2003 BONDS .................................................................. 7
Description of the 2003 Bonds ................................................... 7
Debt Service Schedule ......................................................... 9
Terms of Redemption ....................................... .............. ..... 9
Transfer and Exchange of Bonds ................................................ 11
Book-Entry and DTC ......................................................... 12
SECURITY FOR THE 2003 BONDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. 12
General .................................................................... 12
Special Taxes ............................................................... 12
Rate and Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
Special Taxes and the Teeter Plan ............................................... 16
Proceeds of Foreclosure Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16
Special Tax Fund ............................................................ 17
Bond Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17
Administrative Expense Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18
Investment of Moneys in Funds ................................................. 18
Rebate Requirement.. ... . ... ... ... . ... ......... .... . .... ... ..... ..... ... . .... 18
Additional Bonds ............................................................ 18
THE AUTHORITY ................................................................. 20
Authority for Issuance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20
THE COMMUNITY FACILITIES DISTRICT....... ...... ................. ... .... ....... 21
Location and Description of the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21
Specific Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21
Environmental Conditions ..................................................... 21
Other Matters ............................................................... 22
Acquisition ofImprovements ................................................... 23
Property Ownership .......................................................... 23
EstImated Special Tax Allocation by Property Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . .. 42
Direct and Overlapping Debt ................................................... 44
Overlapping Assessment and Community Facilities Districts .......................... 47
Other Overlapping Direct Assessments ........................................... 47
Transportation Uniform Mitigation Fee ........................................... 47
Estimated Assessed Value-to-Lien Ratios ......................................... 48
Market Absorption Study ...................................................... 48
Appraised Property Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 50
BONDOWNERS'RISKS ............................................................ 51
-1-
Risks of Real Estate Secured Investments Generally ................................. 51
Concentration of Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 51
Failure to Develop Properlles ............ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 51
Special Taxes Are Not Personal Obligations ....................................... 52
The 2003 Bonds Are Limited Obligations of the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 52
Appraised Values ............................................................ 52
Land Development ........................................................... 52
Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property ..... 53
Disclosure to Future Purchasers ................................................. 53
Government Approvals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 54
Local, State and Federal Land Use Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 54
Endangered and Threatened Species. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 54
Hazardous Substances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 54
Levy and Collection of the Special Tax ........................................... 55
Exempt Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 56
Depletion of Reserve Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 57
Potential Delay and Limitations in Foreclosure Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . .. 57
Bankruptcy and Foreclosure Delay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 58
Payments by FDIC and Other Federal Agencies .................................... 59
Payment of Special Tax Not a Personal Obligation of the Property Owners ....... . . . . . . .. 60
Factors Affecting Parcel Values and Aggregate Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 60
No Acceleration Provisions .................................................... 60
Conununity Facilities District Formation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 60
Billing of Special Taxes ....................................................... 61
Collection of Special Tax ...................................................... 61
Right to Vote on Taxes Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 61
Ballot Initiatives and Legislative Measures ........................................ 62
Limited Secondary Market ...................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 62
Loss of Tax Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 62
Limitations on Remedies ...................................................... 63
LEGAL MATTERS . .. . . . .. . . . . . .. . . . . . . . . . . . . .. . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . .. .. 63
Legal Opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 63
~~xiIti:~f~~n.:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~~
NO RATINGS.. .................. . .......... ....... . ......... .... ............. .... 64
UNDERWRITING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 64
PROFESSIONAL FEES ............................................................. 64
MISCELLANEOUS ................................................................ 64
APPENDIX A -
APPENDIX B -
APPENDIX C -
APPENDIX D -
APPENDIX E -
APPENDIX F -
APPENDIX G -
APPENDIX H -
APPENDIX I -
General Information About the City of Temecula . . . . . . . . . . . . . . . . . . . . . . . .. A-I
Temecula Public Financing Authority Community Facilities District No.
03-1 (Crowne Hill) Rate and Method of Apportionment of Special Tax....... B-1
Sununary Appraisal Report. .... ......... . .............. ... ....... ... C-I
Sununary Market Absorption Study ................................... C-I
Summary of Certain Provisions of the Fiscal Agent Agreement ............. D-I
Form of Community Facilities District Continumg Disclosure Agreement.. ... E-I
Forms of Developer Continuing Disclosure Agreements .................... F-I
Form of Opinion of Bond Counsel .................................... G-I
Book-Entry System. .... .... ..... .... . ..... .... . .... ....... .... . ... H-I
-11-
BOUNDARY MAP
AERIAL MAP
[Regional Map to be provided by Stone & Youngberg LLC.]
-ll-
OFFICIAL STATEMENT
$11,985,000'
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1
(CROWNE HILL)
SPECIAL TAX BONDS, SERIES 2003-A
INTRODUCTION
This introduction is not a summary of this Official Statement. It is only a brief description of and
guide to, and is qualified by, more complete and detailed information contained in the entire Official
Statement, including the cover page and appendices hereto, and the documents summarized or described
herein. A full review should be made of the entire Official Statement. The offering of the 2003 Bonds to
potential investors is made only by means of the entire Official Statement.
General
This Official Statement, including the cover page and appendices hereto, is provided to furnish
information regarding the issuance and sale by the Temecula PublIc Financing Authority (the "Authority"),
on behalf of the Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne Hill)
(the "District") of $11 ,985,000' aggregate principal amount of the Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill) Special Tax Bonds, Series 2003-A(the "2003 Bonds").
The 2003 Bonds are issued pursuant to the Act (as defined below) and a Fiscal Agent Agreement,
dated as of June 1,2003 (the "Fiscal Agent Agreement"), by and between the Authority, for and on behalf
of the District, and U.S. Bank National Association, as Fiscal Agent (the "Fiscal Agent"). See "THE
AUTHORITY - Authority for Issuance" herein. The Authority may issue additional bonds secured under
the Fiscal Agent Agreement on a parity with the 2003 Bonds. "Bonds" means the 2003 Bonds and any such
Parity Bonds, as defmed herein (collectively, the "Bonds").
Capitalized terms used in this Official Statement and not otherwise defined herein have the meanings
given such terms in the Fiscal Agent Agreement, some of which are set forth in Exhibit E hereto "Summary
of Certain Provisions of the Fiscal Agent Agreement."
The Authority
The Authority was formed on April 10, 2001, pursuant to a Joint Exercise of Powers Agreement
between the City of Temecula, California (the "City") and the Redevelopment Agency of the City of
Temecula, in accordance with Articles I through 4 (commencing with Section 6500) of Chapter 5, Division 7,
Title I of the Government Code of the State of California. See "THE COMMUNITY F AClLlTlES
DISTRICT - General Information" and "THE AUTHORITY."
The Community Facilities District
The District was formed and established by the Board of Directors of the Authority on March 25,
2003 pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of
the California Government Code, and referred to herein as the "Act"), following a public hearing and a
landowner election at which the qualified electors of the District, by more than a two-thirds vote, authorized
the District to incur bonded indebtedness in the aggregate not-to-exceed amount of$25,000,000 and approved
the levy of special taxes (the "Special Taxes") on certain real property located in the District.
Once duly established, a community facilities district is a legally constituted governmental entity
established for the purpose of financing specific facilities and services within defined boundaries. Subject
to approval by a two-thirds vote of the qualified voters within a community facilities district and compliance
with the provisions of the Act, a community facilities district may issue bonds and may levy and collect
special taxes to repay such bonded indebtedness and interest thereon.
*Prelirninary, subject to change.
The District is contiguous and is comprised of approximately 261.91 net acres of primarily
undeveloped land located on the east side of the City, in the south-westerly portion of the County of Riverside
(the "County"). The District lies within the area ofthe master-planned community known as "Crowne Hill"
and is part ofthe specific plan area known as "Butterfield Stage Ranch" (Specific Plan 226) (the "Butterfield
Stage Ranch Specific Plan") adopted by the County in 1987. (The City was not incorporated at that time.)
The District is bounded generally on the west by Butterfield Stage Road, on the north by Pauba Road and on
the south by Route 79. The District consists of property containing approximately 796 home sites in an
approximately 1,049 residential unit master-planned community. Included within the master-planned
community (but not within the boundaries of the District) is a proposed approximately [11- ]acre school site,
two neighborhood park sites (3.5 acres and 5.2 acres, respectively), plus many other open
spaced/greenbelt/slope areas and five private homeowner park sites. Approximately 249 lots at the southerly
end of the master-planned community are occupied and are not part of the District.
There are five major landowners within the District: (i) LEN One, Inc., a Virginia corporation
("LEN One") which owns property containing 439 home sites (approximately 119.92 net acres) of which 114
home sites are identified by the Lennar Entities (as defined below) as relating to U.S. Home, Inc., a California
corporation ("US Home") and 325 home sites are identified by the Lennar Entities as relating to Greystone
Homes, Inc., a California corporation ("Greystone Homes"); (ii) Greystone Homes which owns property
containing 17 home sites; (iii) KB Home Coastal, Inc., a California corporation ("KB Home Coastal") which
owns property containing212 home sites (approximately 40.39 net acres) in two tracts; (iv) PCC III - Crowne
Hill 100, LLC, a Delawarc limited liability company ("PCC I 00") which owns property containing 100 home
sites (approximately 18.48 net acres) for which Lennar Homes of California, Inc., a California corporation
("Lennar Homes") is the merchant builder and (v) PCC 1lI - Crowne Hill LLC, a Delaware limited liability
company ("PCC 1lI") which owns property expected to contain 28 custom estate home sites (approximately
101.6 net acres) for which Pacific Century Homes, Inc., a California corporation ("Pacific Century Homes")
acts as the developer for the construction, or sale to others for construction, of the custom homes. For
purposes hereofthe term "Lennar Entities" includes Lennar Communities, US Home, Greystone Homes and
Lennar Homes, and the term "Lennar Merchant Builders" includes US Home, Greystone Homes and Lennar
Homes. See "PROPERTY OWNERSHIP AND DEVELOPMENT - The Major Property Owners."
Purpose of the 2003 Bonds
The 2003 Bonds are being issued (i) to finance, either directly or indirectly, the acquisition and
construction of certain street and signal improvements, storm drain improvements, sewer and water
improvements, fire protection improvements and park and recreation improvements (collectively, the
"Improvements") to be located within or in the vicinity of the District, (ii) to eliminate an existing special
assessment lien (the "Prior Lien") on parcels in the District, (iii) to pay interest on the 2003 Bonds through
September I, 2003, (iv) to pay certain administrative expenses ofthe District, (v) to pay the costs of issuing
the 2003 Bonds and (vi) to establish a Reserve Fund for the 2003 Bonds. See "PLAN OF FINANCE;
IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OF THE 2003 BONDS" herein.
Sources of Payment for the 2003 Bonds
The 2003 Bonds are secured by and payable from a first pledge of "Special Tax Revenues," defined
in the Fiscal Agent Agreement as the proceeds ofthe Special Taxes received by the Authority, including any
scheduled payments thereof and any prepayments thereof, interest thereon and proceeds of the redemption
or sale of property sold as a result of foreclosure of the lien of the Special Taxes to the amount of said lien
and interest thereon. "Special Tax Revenues" does not include any penalties collected in connection with
delinquent Special Taxes which amounts may be forgiven or disposed of by the Authority in its discretion,
and if collected, will be used in a manner consistent with the Act. "Special Taxes" are defined in the Fiscal
Agent Agreement as the special taxes levied within the District pursuant to the Act, the ordinance adopted
by the legislative body of the District providing for the levy of the Special Taxes and the Fiscal Agent
Agreement. The Special Taxes are leVied in accordance with the Rate and Method of Apportionment of
Special Tax (the "Rate and Method") recorded as a lien on the Property pursuant to the Notice of Special Tax
Lien.
Pursuant to the Act, the Rate and Method, the Resolution of Formation (as defined herein) and the
Fiscal Agent Agreement, so long as any 2003 Bonds are outstanding, the Authority will annually levy the
Special Tax against the land within the District not exempt from Special Taxes under the Act and the Rate
and Method ("Taxable Property") in accordance with the proceedings for the authorization and issuance of
the 2003 Bonds and with the Rate and Method, to make provision for the collection of the Special Tax in
amounts which will be sufficient to (a)(i) pay debt service on all 2003 Bonds, if any, for the calendar year
2
that commences in such Fiscal Year, (ii) pay periodic costs on the 2003 Bonds, including but not limited to,
credit enhancement, liquidity support and rebate payments on the 2003 Bonds; (iii) pay Administrative
Expenses; and (iv) pay any amounts required to establish or replenish any bond or interest rate reserve funds
for any Outstanding Bonds; less (b) a credit for funds available to reduce the annual Special Tax levy under
the Fiscal Agent Agreement. See "SECURITY FOR THE 2003 BONDS - Special Taxes and the Teeter
Plan" herein.
The Rate and Method establishes two zones within the District. Zone I encompasses the lots not
owned by KB Home Coastal. Zone 2 encompasses the lots owned by KB Home Coastal. The Rate and
Method exempts from the Special Tax up to 93.41 acres of Public Property and/or Property Owner
Association Property within Zone I of the District and up to 30.43 acres of Public Property and/or Property
Owner's Association Property within Zone 2 of the District. See "SECURITY FOR THE 2003 BONDS-
Rate and Method" and "BONDOWNERS' RISKS - Exempt Properties."
The Authority has also covenanted in the Fiscal Agent Agreement to cause foreclosure proceedings
to be commenced and prosecuted against certain parcels with delinquent installments of the Special Tax. For
a more detailed description of the foreclosure covenant, see "SECURITY FOR THE 2003 BONDS -
Proceeds of Foreclosure Sales."
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE AUTHORITY,
THE DISTRICT (EXCEPT TO THE LIMITED EXTENT DESCRIBED HEREIN) OR THE STATE
OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE 2003
BONDS. OTHER THAN THE SPECIAL TAXES OF THE DISTRICT, NO TAXES ARE PLEDGED
TO THE PAYMENT OF THE 2003 BONDS. THE 2003 BONDS ARE NOT A GENERAL
OBLIGATION OF THE AUTHORITY OR THE DISTRICT, BUT ARE LIMITED OBLIGATIONS
OF THE DISTRICT PAYABLE SOLELY FROM THE SOURCES PROVIDED IN THE FISCAL
AGENT AGREEMENT.
Appraisal
An appraisal prepared by an MAl appraiser of the land and existing improvements for the
development within the District dated March 19,2003 (the "Appraisal"), has been prepared by Stephen G.
White, MAl of Fullerton, California (the "Appraiser") in connection with issuance ofthe 2003 Bonds. The
purpose ofthe appraisal was to estimate the market value of each of the 8 tracts, reflectin!l the as is condition
of the lots within each tract, as well as the homes which are completed or under constructIOn. The Appraisal
also incorporates the proposed District financing together with the overall tax rate to future homeowners of
approximately 1.8 to 1.9%, including the Special Taxes. The subject property includes property proposed
for development of796 single family residential lots. The Appraisal is based on certain assumptions. Subject
to these assumptions, the Appraiser estimated that the fee simple market value of the Taxable Property within
the District (subject to the lien of the Special Taxes) as of March 15,2003, was as follows:
No. of
Home Sites/
Tract Name Builder Lois Market Value
Stratford US Home 114 $12,300,000
Nottingham Greystone Homes 119 12,700,000
Astoria Greystone Homes III 12,850,000
Carlyle Lennar Homes 100 9,490,000
F airmont Greystone Homes 112 10,770,000
Knighlsbridge KB Home Coastal 127 13,750,000
Hampton KB Home Coastal 85 10,890,000
Estate Lots Pacific Century Homes ~ 4.750.000
796 $87,500,000
The fee simple market value includes the value of grading and infrastructure improvements completed
as of the date of value and the improvements to be financed by the 2003 Bonds. The market values reported
in the Appraisal result in an estimated value-to-lien ratio of7.3: I, calculated with respect to the 2003 Bonds
and excluding the overlapping assessment debt relating to the Prior Lien. The value-to-lien ratios of
3
individual parcels will differ from the foregoing aggregate value. See "THE BONDOWNERS' RISKS-
Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property" and
"BONDOWNERS' RISKS - Appraised Values" herein and APPENDIX C - "Summary Appraisal Report"
appended hereto for further information on the Appraisal and for limiting conditions relating to the Appraisal.
Tax Exemption
Assuming compliance with certain covenants and provisions of the Internal Revenue Code of 1986,
in the opinion of Bond Counsel, interest on the 2003 Bonds will not be includable in gross income for federal
income tax purposes although it may be includable in the calculation for certain taxes. Also in the opinion
of Bond Counsel, interest on the 2003 Bonds will be exempt from State personal income taxes. See "LEGAL
MATTERS - Tax Exemption" herein.
Risk Factors Associated with Purchasing the 2003 Bonds
Investment in the 2003 Bonds involves risks that may not be appropriate for some investors. See the
section ofthis Official Statement entitled "BONDOWNERS' RISKS" for a discussion of certain risk factors
which should be considered, in addition to the other matters set forth herein, in considering the investment
quality of the 2003 Bonds.
Forward Looking Statements
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 27 A
of the United States Securities Act of 1933, as amended. Such statements are llenerally identifiable by the
terminology used such as a "plan," "expect," "estimate," "project," "budgeC' or SImilar words. Such forward-
looking statements include, but are not limited to certain statements contained in the information under the
caption "THE COMMUNITY FACILITIES DISTRICT - Property Ownership" therein.
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. NEITHER THE AUTHORITY NOR THE DISTRICT PLANS
TO ISSUE ANY UPDATES OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS SET
FORTH IN THIS OFFICIAL STATEMENT.
Professionals Involved in the Offering
U.S. Bank National Association, Los Angeles, California, will serve as the paying agent, registrar,
authentication and transfer agent, and dissemination agent for the 2003 Bonds and will perform the functions
required of it under the Fiscal Agent Allreement for the payment of the principal of and interest and any
premium on the 2003 Bonds and all actiVities related to the redemption ofthe 2003 Bonds. Quint & Thimmig
LLP, San Francisco, California is serving as Bond Counsel to the Authority. McFarlin & Anderson LLP,
Lake Forest, California, is acting as Disclosure Counsel to the Authority. Pillsbury Winthrop LLP, Los
Angeles, California, is acting as counsel to Lennar Homes. [Describe counsel for other Lennar Entities, if
needed and for KB Home Coastal.]
Albert A. Webb Associates, Riverside, California, acted as special tax consultant to the District.
Fieldman, Rolapp and Associates, Irvine, California, acted as Financial Advisor to the Authority. The
appraisal work was done by Stephen G. White, MAl of Fullerton, California. Empire Economics, LLC, San
Juan Capistrano, California, acted as Absorption Consultant.
Payment of the fees and expenses of Bond Counsel, Disclosure Counsel, the Fiscal Agent and the
Underwriter, and of a portion of the fees and expenses of the Financial Advisor and the Special Tax
Consultant, is contingent upon the sale and delivery of the Bonds.
4
Other Information
This Official Statement speaks only as of its date, and the information contained herein is subject to
change. Brief descriptions of the 2003 Bonds, certain sections of the Fiscal Agent Agreement, secunty for
the 2003 Bonds, special risk factors, the Authority, the District, the Lennar Merchant Builders, KB Home
Coastal, PCC 1II, information regarding the development plan for the property owned by the Lennar Merchant
Builders, KB Home Coastal, PCC III and other information are included in this Official Statement. Such
descriptions and information do not purport to be comprehensive or definitive. The descriptions herein of
the 2003 Bonds, the Fiscal Agent Agreement, and other resolutions and documents are qualified in their
entirety by reference to the complete texts ofthe 2003 Bonds, the Fiscal Agent Agreement, such resolutions
and other documents. All such descriptions are further qualified in their entirety by reference to laws and to
principles of equity relating to or affecting generally the enforcement of creditors' rights. Copies of such
documents may be obtained upon written request from the Temecula Public Financing Authority, 43200
Business Park Drive, Temecula, California 92590 Attention: Treasurer. The Authonty may charge for
copying and mailing any documents requested.
CONTINUING DISCLOSURE
The Authority. The Authority has covenanted for the benefit of the Owners of the 2003 Bonds to
provide annually certain financial information and operating data relating to the 2003 Bonds, the District,
ownership and development of the property in the District which is subject to the Special Tax, the occurrence
of delinquencies in payment of the Special Tax, and the status of foreclosure proceedings, if any, respecting
Special Tax delinquencies (the "Authority Annual Report"), and to provide notice ofthe occurrence of certain
enumerated events, if material. Such information is to be provided by the Authority not later than eight
months after the end of the Authority's fiscal year (which currently would be March I), commencing with
the reports for the 2002-03 fiscal year. The Authority has a recent undertaking with regard to Securities and
Exchange Commission Rule 15c2-12(b)(5) but the annual report is not required to be filed until March I,
2004. The Authority, the City and related entities have never failed to comply in all material respects with
any previous undertakings WIth regard to said Rule to provide annual reports or notices of matenal events.
Lennar Homes and KB Home Coastal. Lennar Homes and KB Home Coastal have each covenanted
for the benefit ofthe Owners ofthe 2003 Bonds to provide semi-annually certain financial information and
information regarding the development of the property owned by each ofthem, or their Affiliates (as defined
below) in the District (each a "Developer Semi-Annual Re'port"), and to provide notice of the occurrence of
certain enumerated events, if material. Such information IS to be provided not later than three and one half
months after the end of each such merchant builder's fiscal year (November 30 for Lennar Homes and
November 30 for KB Home Coastal, which for the fiscal year ending November 30 would be February 15
of the following year) and not later than nine and one half months after the end of each such merchant
builder's fiscal year (August 15), commencing with the report due not later than February 15,2004 for Lennar
Homes and February 15, 2004 for KB Home Coastal. Under the definition of Affiliate (as defined in the
Developer Continuing Disclosure Agreement attached hereto as Appendix G), Lennar Communities has over
100 Affiliates consisting of various entities that are developing or have been involved in the development of
numerous different projects in states throughout the country over the last 5 years. It is possible that some of
such Affiliates have been in default at one time or another in compliance with covenant undertaken in
connection with Securities and Exchange Commission Rule 15c2-12(b)(5). Lennar Communities does not
have actual knowledge regarding any current Affiliate's defaults during the last five years with respect to
community facilities districts or assessment districts in California, except that in connection with covenants
relating to a 1998 financing for a project in the City ofTemecula by the Winchester Hills Financing Authority
Community Facilities District No. 98-1 (Winchester Hills) in which Lennar Homes was involved as the
administrative member of the major landowner, Lennar Homes, as the administrative member, filed audited
financial statements for each fiscal year through its 1999 fiscal year (the report filed in May 2000) but did
not file the report due for the 2000 fiscal year and did not include financial information regarding the
development of the property owned by Lennar Communities in the 1999 report. In connection with covenants
relating to a 200 I financing for a project in the City of Murrieta by Community Facilities District No. 2000-1
of the Murrieta Valley Unified School District, Greystone Homes, as successor to Pacific Century Homes
failed to provide the continuing disclosure reports due on on a timely basis. The continuing
disclosure report was filed with the dissemination agent on May 15,2003. Lennar Homes is reviewing and
Updating its system for filing reports and expects to satisty Lennar Homes' obligations with regard to
disclosure in the future. KB Home Coastal has not failed in any material manner to comply with any previous
undertaking.
5
Filing of District Annual Reports and Lennar Homes and KB Home Coastal Semi-Annual Reports;
Form of Reports. Each Annual Report will be filed by the Fiscal Agent, as dissemination agent, with each
Nationally Recognized Municipal Securities InformatIOn Repository and with each State Repository, ifany.
These covenants have been made in order to assist the Underwriter in complying with Secunties and
Exchange Commission Rule I5c2-I2(b)(5); provided, however, a default under a Developer Continuing
Disclosure Agreement will not, in itself, constitute an Event of Default under the Fiscal Agent Agreement,
and the sole remedy under each Developer Continuing Disclosure Agreement in the event of any failure of
Lennar Homes or KB Home Coastal or the Dissemination Agent to comply with a Developer Continuing
Disclosure Agreement will be an action to compel performance. Lennar Homes and KB Home Coastal's
continuing disclosure obligations will terminate upon the occurrence of certain events, including when each
such merchant builder (and its Affiliates' property) is subject to less than 15% of the Special Tax levy ofthe
District for the then current Fiscal Year. Based on the estimated absorption and estimated sales of property
provided by KB Home Coastal, such date is estimated to occur by the end of 2003 and the last SemI-Annual
Report of KB Home Coastal is estimated to be provided by February 15, 2004, with a filing under its
Developer Continuing Disclosure Agreement that KB Home Coastal has no further disclosure obligations
under its Developer Continuing Disclosure Agreement. For a complete listing of items of information which
will be provided in the Authority Annual Report and the Developer Semi-Annual Report, see APPENDIX
G - "Forms of Developer Continuing Disclosure Agreements."
PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED
WITH PROCEEDS OF THE 2003 BONDS
Acquisition or Construction of Improvements. Proceeds of the 2003 Bonds in the amount of
$, will be applied to acquire or construct certain street and signal improvements, storm drain
improvements, sewer and water improvements, fire protection improvements and park and recreation
improvements (collectively, the "Improvements") to be constructed within or in the vicinity ofthe District.
In addition, proceeds in the amount of $2,922,382.44 will be applied to prepay the Prior Lien. For a list of
the Improvements, see "THE COMMUNITY FACILITIES DISTRICT - Acquisition or Construction of
Improvements."
The balance of the proceeds of the 2003 Bonds will be used (i) to eliminate the Prior Lien, (ii) to pay
interest on the 2003 Bonds through September I, 2003, (iii) to pay certain administrative expenses of the
District, (iv) to pay the costs of issuing the 2003 Bonds and (v) to establish a Reserve Fund for the 2003
Bonds.
The Authority has entered into a Joint Community Facilities Agreement between the Authority and
the City whereby the City agrees to accept dedication of facilities financed by the District. The Authority
has entered into an Acquisition Agreement between the Authority and Lennar Homes providing for the
acquisition by the Authority from Lennar Homes of certain public facilities. The Authority has entered into
a Joint Community Facilities Agreement among the Authority, the Eastern Municipal Water District
("EMWD"), and Lennar Homes pursuant to which EMWD will accept certain completed sewer facilities
financed by the District. The Authority has entered into a Joint Community Facilities Agreement among the
Authority, the Rancho California Water District, and Lennar Homes, pursuant to which Rancho California
Water District will accept certain completed water facilities financed by the District. The Authority has
entered into a Joint Community Facilities Agreement between the Authority and the California Department
ofTransl?ortation ("CDOT"), pursuant to which the CDOT will accept certain completed facilities financed
by the DIstrict.
6
ESTIMATED SOURCES AND USES OF FUNDS
The proceeds from the sale of the 2003 Bonds will be deposited into the following respective
accounts and funds established by the Authority under the Fiscal Agent Agreement, as follows:
SOURCES
Principal Amount of 2003 Bonds
$
Less: Underwriter's Discount
Total Sources
$
USES
Deposit into Improvement Fund(l) $
Deposit into Reserve Fund
Deposit into Capitalized Interest Subaccount of the Bond Fund(2)
Deposit into Administrative Expense Fund
Deposit into Cost of Issuance Fund(3)
Total Uses $
'"
(2)
(3,
See "PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OFTHE 2003 BONDS" above.
Represents gross funded capitalized interest through September 1, 2003.
Includes, among other things, the fees and expenses of Bond Counsel, Disclosure Counsel, the financial advisor, the
Special Tax Consultant and the Fiscal Agent, the cost of printing the Preliminary and final Official Statements and
reimbursement to the District and Lennar Homes for costs advanced towards the issuance of Bonds and the formation of
the District.
THE 2003 BONDS
Description of the 2003 Bonds
The 2003 Bonds will be dated their date of delivery and will bear interest at the rates per annum set
forth on the cover page hereof, payable semiannually on each March I and September I, commencing on
September I, 2003 (each, an "Interest Payment Date"), and will mature in the amounts and on the dates set
forth on the inside cover page hereof. The 2003 Bonds will be issued in fully registered form in
denominations of $5,000 each or any integral multiple thereof and when delivered, will be registered in the
name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), New York, New York. DTC
will act as securities depository for the 2003 Bonds. Ownership interests in the 2003 Bonds may be
purchased in book-entry form only, in denominations of $5,000 or any integral multiple thereof within a
single maturity. So long as the 2003 Bonds are held in book-entry form, principal of, premium, if any, and
interest on the 2003 Bonds will be paid directly to DTC for distribution to the beneficial owners of the 2003
Bonds in accordance with the procedures adopted by DTC. See "THE 2003 BONDS - Book-Entry and
DTC."
The 2003 Bonds will bear interest at the rates set forth on the cover hereof payable on the Interest
Payment Dates in each year. Interest will be calculated on the basis of a 360-day year comprised of twelve
30-day months. Each 2003 Bond shall bear interest from the March I or September I (each an "Interest
Payment Date") next precedin(l the date of authentication thereof unless (i) it is authenticated on an Interest
Payment Date, in which event It shall bear interest from such date of authentication, or (ii) it is authenticated
prior to an Interest Payment Date and after the close of business on the Record Date (as defined below)
precedin~ such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date,
or (iii) it IS authenticated prior to the Record Date preceding the first Interest Payment Date, in which event
it shall bear intcrest from the Bond Date; provided, however, that if at the time of authentication of a Bond,
*Preliminary, subject to change.
7
interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest
has previously been paid or made available for payment thereon.
The principal of, and interest and premium, if any, payable on the 2003 Bonds shall be payable when
due, by wire transferofthe Fiscal Agent, to The Depository Trust Company, New York, New York ("DTC"),
which will in turn remit such principal, interest and I?remium, if any, to its Participants (as described in
APPENDIX I - "Book-Entry System"), which PartiCipants will in turn remit such principal, interest and
premium, if any, to the Beneficial Owners (as defined in APPENDIX 1- "Book-Entry System") of the 2003
Bonds as described below under APPENDIX 1- "Book-Entry System."
In the event that the 2003 Bonds are not registered in the name of Cede & Co., as nominee ofDTC
or another eligible depository as described below, both the principal and redemption price, including any
premium, of the 2003 Bonds shall be payable by check in lawful money of the United States of America upon
presentation of the 2003 Bonds at the principal office of the Fiscal Agent as specified in the Fiscal Agent
Agreement. Interest on the 2003 Bonds (including the final interest payment upon maturity or earlier
redemption) is payable by check of the Fiscal Agent mailed on the Interest Payment Dates by first class mail
to the registered Owner thereof at such registered Owner's address as it appears on the registration books
maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment
Date, or by wire transfer (i) to DTC (so long as the 2003 Bonds are in book-entry form pursuant to the Fiscal
Agent Agreement, or (ii) to an account within the United States made on such Interest Payment Date upon
written instructions of any Owner of $1,000,000 or more in aggregate principal amount of 2003 Bonds
received before the applicable Record Date, which instructions shall continue in effect until revoked in
writing, or until such 2003 Bonds are transferred to a new Owner.
The 2003 Bonds are issuable only as fully registered Bonds without coupons in denominations of
$5,000 or any integral multiple of $5,000 in excess thereof.
The registered owner of any 2003 Bond will be the person or persons in whose name or names a 2003
Bond is registered on the registration books kept for that purpose by the Fiscal Agent in accordance with the
terms of the Fiscal Agent Agreement. The "Record Date" with respect to any 2003 Bonds, means the
fifteenth day of the month next preceding the month of the applicable Interest Payment Date, whether or not
such day is a Business Day.
So long as the 2003 Bonds are in book-entry only form, all references in this Official Statement to the
owners or holders of the 2003 Bonds means DTC and not the Beneficial Owners.
8
Debt Service Schedule
The following table presents the annual debt service on the 2003 Bonds (including sinking fund
redemptions), assuming that there are no optional redemptions or mandatory redemptions from special taxes.
Year Ending
September I
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Principal
Interest
Total
Debt Service
$
$
$
$
$
$
Terms of Redemption
The 2003 Bonds are subject to redemption upon the circumstances, on the dates and at the prices
set forth as follows.
Optional Redemption.' The 2003 Bonds maturing on or after September I, 2013 are subject to
optional redemption prior to their stated maturity on any Interest Payment Date on or after September I,
2012, as a whole or in part, among maturities so as to maintain substantially level debt service and by lot
within a maturity, at a redemption price (expressed as a percentage of the principal amount of the 2003
Bonds to be redeemed), as set forth below, together with accrued interest thereon to the date fixed for
redemption:
*Preliminal}', subject to change.
9
Redemption Date
September 1,2012 through March 1,2013
September 1,2013 and any Interest Payment
Date thereafter
Redemption Price
102%
100
Mandatory Sinking Payment Redemption. The 2003 Bonds maturing on September I, , are
subject to mandatory sinking payment redemption in part on September I, _' and on each September I
thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed,
together with accrued interest to the date fixed for redemption, without premium, from sinking payments
as follows:
Redemption Date
Sinking Payments
$
(maturity)
The 2003 Bonds maturing on September I, 2033, are subject to mandatory sinking payment
redemption in part on September I, , and on each September I thereafter to maturity, by lot, at a
redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the
date fixed for redemption, without premium, from sinking payments as follows:
Sinking Fund
Redemption Date
Sinking Payments
$
2033 (maturity)
The amounts in the foregoing tables shall be reduced to the extent practicable so as to maintain level
debt service on the 2003 Bonds as a result of any prior partial redemption of the 2003 Bonds pursuant to an
optional redemption or mandatory redemption from prepaid Special Taxes as specified in writing by the
Treasurer to the Fiscal Agent.
Redemption from Special Tax Prepayments. Special Tax Prepayments and any corresponding
transfers from the Reserve Fund shall be used to redeem the 2003 Bonds on the next Interest Payment Date
for which notice of redemption can timely be given, by lot and allocated among maturities ofthe 2003 Bonds
so as to maintain substantially level debt service on the 2003 Bonds, at a redemption price (expressed as a
percentage at the principal amount of the 2003 Bonds to be redeemed), as set forth below, together with
accrued mterest to the date fixed for redemption:
Redemption Date
Any Interest Payment Date from September I,
2003 to and include March I, 2013
September I, 2013 and any Interest Payment
Date thereafter
Redemption Price
102%
100
Purchase In Lieu of Redemption. In lieu of any redemption, moneys in the Bond Fund may be used
and withdrawn by the Fiscal Agent for purchase of Outstanding 2003 Bonds, upon the filing with the Fiscal
Agent of an officer's certificate requesting such purchase, at public or private sale as and when, and at such
10
prices (including brokerage and other charges) as such officer's certificate may provide, but in no event may
Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of
purchase and any premium which would otherwise be due if such 2003 Bonds were to be redeemed in
accordance with the Fiscal Agent Agreement
Notice of Redemption. The Fiscal Agent shall cause notice of any redemption to be mailed by first
class mail, postage prepaid, at least thirty (30) days but not more than sixty (60) days prior to the date fixed
for redemption, to the Underwriter, to the Securities Depositories, to one or more Information Services, and
to the respective registered Owners of any 2003 Bonds designated for redemption, at their addresses
appearing on the Bond registration books in the principal office ofthe Fiscal Allent; but such mailing shall
not be a condition precedent to such redemption and failure to mail or to receIve any such notice, or any
defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds.
Such notice shall state the redemption date and the redemption price and, ifless than all of the then
Outstanding 2003 Bonds are to be called for redemption, shall designate the CUSIP numbers and Bond
numbers of the 2003 Bonds to be redeemed by giving the individual CUSIP number and Bond number of
each 2003 Bond to be redeemed or shall state that all 2003 Bonds between two stated Bond numbers, both
inclusive, are to be redeemed or that all of the 2003 Bonds of one or more maturities have been called for
redemption, shall state as to any 2003 Bond called in part the principal amount thereof to be redeemed, and
shall require that such 2003 Bonds be then surrendered at the principal office of the Fiscal Agent for
redemption at the said redemption price, and shall state that further interest on such 2003 Bonds will not
accrue from and after the redemption date.
Partial Redemption. Whenever provision is made in the Fiscal Agent Agreement for the redemption
of less than all of the Bonds or any given portion thereof, the Fiscal Agent shall select the Bonds to be
redeemed, from all Bonds or such given portion thereof not previously called for redemption, among
maturities as directed in writing by the Treasurer (who shall specify Bonds to be redeemed so as to maintain,
as much as practicable, the same debt service profile for the Bonds as in effect prior to such redemption,
unless otherwise specified herein), and by lot WIthin a maturity in any manner which the Fiscal Agent deems
appropriate.
Upon surrender of Bonds redeemed in part only, the Authority shall execute and the Fiscal Agent
shall authenticate and deliver to the registered Owner, at the expense of the Authority, a new Bond or Bonds,
of the same series and maturity, of authorized denominations in aggregate principal amount equal to the
unredeemed portion of the Bond or Bonds.
Effect of Redemption. From and after the date fixed for redemption, if funds available for the
payment of the principal of, and interest and any premium on, the 2003 Bonds so called for redemption shall
have been deposited m the Bond Fund, such 2003 Bonds so called shall cease to be entitled to any benefit
under the Fiscal Agent Agreement other than the right to receive payment of the redemption price, and no
interest shall accrue thereon on or after the redemption date specified in such notice.
Transfer and Exchange of Bonds
Any 2003 Bond may, in accordance with the terms of the Fiscal Agent Agreement, be transferred
upon the books of the Fiscal Agent, required to be kept pursuant to the Fiscal Agent Agreement by the
person in whose name it is registered, in person or by hIS duly authorized attorney, upon surrender of such
2003 Bond for cancellation, accompanied by delivery of a written instrument of transfer in a form acceptable
to the Fiscal Agent. 2003 Bonds may be exchanged at the principal office of the Fiscal Agent for a like
aggregaterrincIPal amount of2003 Bonds of authorized denominatIOns and of the same series and maturity.
The Ftsca Agent shall collect from the Owner requesting such exchange any tax or other governmental
charge required to be paid with respect to such transfer or exchanlle, [and may, in connection with any
exchange, collect a charge equal to a customary fee charged by the FIscal Agent for such exchange, but any
such transfer or exchange shall otherwise be made without charge to the Bondowner requesting the same.]
No transferor exchange shall be required to be made of any 2003 Bonds (i) fifteen days prior to the
date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond after
such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding Interest
Payment Date.
Book-Entry and DTC
II
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository
for the 2003 Bonds. The 2003 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 re~istered 2003 Bond certificate will be issued for each maturity of the
2003 Bonds, each in the aggregate pnncipal amount of such maturity, and will be deposited with DTC. All
references in this Official Statement to the Bondowners or an owner of 2003 Bonds shall mean DTC or its
designee and not the beneficial owners of the 2003 Bonds. See APPENDIX I - "Book-Entry System."
SECURITY FOR THE 2003 BONDS
General
The Bonds are secured by a pledge of all of the Special Tax Revenues and, until disbursed as
provided in the Fiscal Agent Agreement, in the Special Tax Fund. The 2003 Bonds will also be secured by
moneys deposited in the Reserve Fund. Pursuant to the Act and the Fiscal Agent Agreement, the Authority
will annually levy in each Fiscal Year the Special Taxes in an amount required for the payment of principal
of and interest on any outstanding Bonds becoming due and payable dunng the calendar year commencmg
in each Fiscal Year, mcluding any necessary replenishment of Reserve Fund for 2003 Bonds and an amount
estimated to be sufficient to pay the Administrative Expenses during such year. The Special Tax Revenues
and all deposits into said funds (until disbursed as provided in the Fiscal Agent Agreement) are pledged to
the payment of the principal of, and interest and any premium on, the Bonds as provided in the Fiscal Agent
Agreement and in the Act until all of the Bonds have been paid and retired or until moneys or Federal
Securities (as defined in the Fiscal Agent Agreement) have been set aside irrevocably for that purpose.
Amounts in the Administrative Expense Fund, the Cost of Issuance Fund, and the Improvement
Fund are not pledged to the repayment of the 2003 Bonds. The Improvements constructed or acquired with
the proceeds of the 2003 Bonds are not in any way pledged to pay the debt service on the 2003 Bonds. Any
proceeds of condemnation or destruction of any facilities financed with the proceeds of the 2003 Bonds are
not pledged to pay the debt service on the 2003 Bonds and are free and clear of any lien or obligation
imposed under the Fiscal Agent Agreement.
Special Taxes
The Authority has covenanted in the Fiscal Agent Agreement to comply with all requirements of
the Act so as to assure the timely collection of Special Taxes, including without lImitation, the enforcement
of delinquent Special Taxes. The Fiscal Agent Agreement provides that the Special Taxes are payable and
will be collected in the same manner and at the same time and in the same installment as the general taxes
on real property, and will have the same priority, become delinquent at the same times and in the same
proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the
~eneral taxes on real property; provided, the Authority may provide for direct collection ofthe Special Taxes
In certam CIrcumstances.
Because the Special Tax levy is limited to the maximum Special Tax rates set forth in the Rate
and Method, no assurance can be given that, in the event of Special Tax delinquencies, the receipts
of Special Taxes will, in fact, be collected in sufficient amonnts in any given year to pay debt service
on the 2003 Bonds.
Although the Special Tax, when levied, will constitute a lien on parcels subject to taxation within
the District, it does not constitute a personal indebtedness of the owners of property within the District.
There is no assurance that the owners of real property in the District will be financially able to pay the
annual Special Tax or that they will pay such tax even if financially able to do so. See "BONDOWNERS'
RISKS" herein.
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE
AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED EXTENT DESCRIBED HEREIN)
OR THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE
PAYMENT OF THE 2003 BONDS. OTHER THAN THE SPECIAL TAXES OF THE DISTRICT,
NO TAXES ARE PLEDGED TO THE PAYMENT OF THE 2003 BONDS. THE 2003 BONDS ARE
NOT A GENERAL OBLIGATION OF THE AUTHORITY OR THE DISTRICT, BUT ARE
LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM SOURCES
PROVIDED IN THE FISCAL AGENT AGREEMENT.
12
Rate and Method
General. The Special Tax is levied and collected according to the Rate and Method set forth in
APPENDIX B - "Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne
Hill) Rate and Method of Apportionment of Special Tax." The qualified electors of the District approved
the Rate and Method on March 25, 2003. Capitalized terms used in the following paragraphs but not defined
herein have the meanings given them in the Rate and Method.
The Rate and Method provides the means by which the Board of Directors of the Authority may
annually levy the Special Taxes within the District up to the Maximum Special Tax. The Rate and Method
provides that the Annual Special Tax may not be levied after Fiscal Year 2043-44.
Special Tax Requirement. Annually, at the time of levying the Special Tax for the District, the
Authority will determine the amount of money to be collected from Taxable Property in the District (the
"Special Tax Requirement"), which will be the amount required in any Fiscal Year to pay the following:
(i) the annual debt service on all outstanding Bonds due in the calendar year which commences
in such Fiscal Year;
(ii) periodic cost on the Bonds, including, but not limited to, credit enhancement and rebate
payments on the Bonds;
(iii) Administrative Expenses;
(iv) an amount equal to any anticipated shortfall due to Special Tax delinquency in the prior
Fiscal Year; and
(v) any amount required to establish or replenish any reserve funds for the outstanding Bonds;
less
(vi) a credit for funds available to reduce the annual Special Tax levy as determined pursuant
to the Fiscal Agent Agreement.
Developed and Undeveloped Property; Exempt Property. The Rate and Method declares that for
each Fiscal Year, all Parcels of Taxable Property within the District of each Zone shall be classified as either
Developed Property, Approved Property, Undeveloped Property, Public Property and/or Property Owner's
Association Property that is not Exempt Property and shall be subject to the levy of Special Taxes in
accordance with the Rate and Method.
(i)
(ii)
(iii)
(iv)
"Taxable Prooertv" means all Parcels in the District which have not prepaid pursuant to the
Rate and Method, or are not exempt from the Special Tax pursuant to law or the Rate and
Method.
"Develoned Pronertv" means all Parcels of Taxable Property, not classified as Approved
Property, Undeveloped Property, Public Property and/or Property Owner's Association
Property that are not Exempt Property pursuant to the provisions of the Rate and Method,
(i) that are included in a Final Map that was recorded prior to the January I" preceding the
Fiscal Year in which the Special Tax is being levied and (ii) a building permit for new
construction has been issued prior to April I't preceding the Fiscal Year in which the
Special Tax is being levied.
"AoorovedProoertv" means for the any Fiscal Year, all Parcels of Taxable Property: (i) that
are included in a Final Map that was recorded prior to the January I" preceding the Fiscal
Year in which the Special Tax is being levied, and (ii) for which a building permit was not
issued prior to the April I" preceding the Fiscal Year in which the Special Tax is being
levied.
"Public Prooertv" means any property within the boundary of the District which, as of
January I " of the preceding Fiscal Year for which the Special Tax is being levied is used
for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered
13
(v)
for dedication to the federal government, the State of California, the County, City or any
other local jurisdiction, provided, however, that any property leased by a public agency to
a private entity and subject to taxation under Section 53340.1 ofthe Act shall be taxed and
classified according to its use.
"Undevelooed Prooertv" means all Taxable Property not classified as Developed Property,
Approved Property, Public Property and/or Property Owner Association Property that is not
Exempt Property (as defined in the Rate and Method).
(vi)
"Zones" means Zone I or Zone 2 as geographically identified on the boundary map of the
District attached to the Rate and Method. The Lennar Merchant Builders and PCC III
properties are within Zone I and the KB Horne Coastal properties are within Zone 2.
"Exemotions" is defined to include the following:
(vii)
Zone I. The Rate and Method provides that no Special Tax shall be levied on up to 93.41
acres of Public Property and/or Property Owner Association Property within Zone I of the District.
The District Admmistrator will assign tax-exempt status in the chronological order in which
property becomes Public Property and/or Property Owner's Association Property within Zone I.
[Once an Assessor's Parcel has been classified as Public Property, its tax-exempt status will be
permanent, independent of its future uses.] Public Property includes property used for rights-of-way
or any other purpose and owned by, dedicated to, or irrevocably offered for dedication to the federal
government, the State, the County, the City or any other local jurisdiction. After the limit of93.41
acres within Zone I of the District has been reached, the Maximum Special Tax obligation for any
additional Public Property and/or Property Owner's Association Property shall be prepaid in full
pursuant to the Rate and Method, prior to the transfer of dedication of such property. Until the
Maximum Special Tax obligation is prepaid as provided in the preceding sentence, the Public
Property and/or Property Owner's AssocIation Property within the District shall be subject to the
levy of the Special Tax as provided for in the Rate and Method.
Zone 2. The Rate and Method provides that no Special Tax shall be levied on up to 30.43
acres of Public Property and/or Property Owner Association Property within Zone 2 of the District.
The District Admmistrator will assign tax-exempt status in the chronological order in which
property becomes Public Property and/or Property Owner's Association Property within Zone 2.
[Once an Assessor's Parcel has been classified as Public Property, its tax-exempt status will be
permanent, independent of its future uses.] After the limit of 30.43 acres within Zone 2 of the
District has been reached, the Maximum Special Tax obligation for any additional Public Property
and/or Property Owner's Association Property shall be prepaid in full pursuant to the Rate and
Method, prior to the transfer of dedication of such property. Until the Maximum Special Tax
obligation is prepaid as provided in the preceding sentence, the Public Property and/or Property
Owner's Association Property within the District shall be subject to the levy of the Special Tax as
provided for in the Rate and Method.
Maximum Special Tax. The Maximum Special Tax is defined in the Rate and Method as follows:
(i) Undevelooed Prooertv and Aooroved Prooertv:
Zone 1. The Maximum Special Tax for each Parcel of Undeveloped Property and
Approved Property within Zone I shall be $5,547 per acre.
Zone 2. The Maximum Special Tax for each Parcel of Undeveloped Property and
Approved Property within Zone 2 shall be $8,519 per acre.
(ii) Develooed Prooertv: The Maximum Special Tax for each Parcel of Residential Property
within its applicable Zone that is classified as Developed Property shall be the greater of
(i) the applicable Assigned Special Tax described in the Rate and Method, or (ii) the
amount derived by apphcation of the Backup Special Tax. The Maximum Special Tax for
each Parcel of Non-Residential Property shall be the Assigned Special Tax described in the
Rate and Method. The Assigned Annual Special Tax for Developed Property ranges from
$308 for a multifamily residential unit to $5,136 per residential unit in Zone I and from
$473 for a multifamily residential unit to $1,927 per residential unit in Zone 2. See
14
APPENDIX B - "Temecula Public Financing Authority Community Facilities District No.
03-1 (Crowne Hill) Rate and Method of Apportionment of Special Tax - Table I" herein
for a listing of the Assigned Annual Special Tax rates for various sizes of units in each
Zone.
Zone 1 Backup Special Tax. The Backup Special Tax shall be $5,547 per acre for Parcels of
Residential Property that are included in a Final Map.
Zone 2 Backup Special Tax. The Backup Special Tax shall be $8,519 per acre for Parcels of
Residential Property that are included in a Final Map.
Method of Apportionment. The Rate and Method provides that commencing Fiscal Year 2003- 04
and for each following Fiscal Year, the Authority shall levy the Special Tax on all Taxable Property until
the amount of Special Taxes equals the Special Tax Requirement in accordance with the following steps:
First: The Special Tax shall be levied Prorortionately on each Parcel of Developed Property
at up to 100% of the applicable Assigned Specia Tax rate in Tables I or 2 of the Rate and Method
as needed to satisfY the Special Tax Requirement;
Second: If additional moneys are needed to satisfY the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of
Approved Property at up to 100% of the Maximum Special Tax for Approved Property;
Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of
Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property;
Fourth: If additional moneys are needed to satisfY the Special Tax Requirement after the
first three steps have been completed, the Special Tax to be leVIed on each Parcel of Developed
Property whose Maximum Special Tax is denved through the application ofthe Backup Special Tax
shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax
for each such Parcel; and
Fifth: If additional moneys are needed to satisfY the Special Tax Requirement after the first
four steps have been completed, then the Special Tax shall be levied Proportionately on each Parcel
of Pubhc Property and/or Property Owner Association Property that is not Exempt Property at up
to 100% pursuant to the provIsions of the Maximum Special Tax.
Notwithstanding the above, under no circumstances will the Special Taxes levied against any Parcel
of Residential Property be increased by more than ten percent (10%) per Fiscal Year as a consequence of
delinquency or default by the owner of any other Parcel within the District.
Prepayment of Maximum Special Taxes. The Maximum Special Tax obligation for a Parcel of
Developed Property, Approved Property for which a building permIt has been issued or Public Property
and/or Property Owner's Association Property that is not Exempt Property may in certain circumstances be
prepaid in whole or in part, provided that there are no delinquent Special Taxes, penalties, or interest charges
outstanding with respect to such Parcel at the time the Annual Special Tax obligation would be prepaid. The
Prepayment Amount for an applicable Parcel after the issuance of 2003 Bonds is calculated based on Bond
Redemption Amounts and other costs, all as specified in APPENDIX B - "Temecula Public Financing
Authonty Community Facilities District No. 03-1 (Crowne Hill) Rate and Method of AfPortionment of
Special Tax - Section H" herein. Any such prepayment will result in a redemption 0 Bonds prior to
maturity. See "THE 2003 BONDS - Terms of Redemption."
Special Taxes and the Teeter Plan
The County has adopted a Teeter Plan as provided for in Section 4701 et seg. of the California
Revenue and Taxahon Code, under which a tax distnbution procedure is implemented and secured roll taxes
are distributed to taxing agencies within the County on the basis of the tax levy, rather than on the basis of
actual tax collections. By policy, the County does not include assessments, reassessments and special taxes
of the District in its Teeter program.
15
Proceeds of Foreclosure Sales
Pursuant to Section 53356.1 of the Act, in the event of any delinquency in the payment of the
Special Tax, the District may order the institution of a Superior Court action to foreclose the lien therefor
within specified time limits. In such an action, the real property subject to the unpaid amount may be sold
at judicial foreclosure sale. Such judicial foreclosure action is not mandatory. Under the Fiscal Agent
Agreement, on or about February 15 and June 15 of each Fiscal Year, the Treasurer shall compare the
amount of Special Taxes theretofore levied in the District to the amount of Special Tax Revenue theretofore
received by the Authority, and:
Individual Delinquencies. If the Treasurer determines that any single parcel subject to the
Special Tax in the District is delinquent in the payment of Special Taxes in the aggregate amount
of $2,500 or more, then the Treasurer will send or cause to be sent a notice of delinquency (and a
demand for immediate payment thereof) to the property owner within 45 days of such
determination, and (if the delinquency remains uncured) foreclosure proceedings will be
commenced by the Authority within 90 days of such determination. Notwithstanding the foregoing,
the Treasurer may defer such action if the amount in the Reserve Fund is at least equal to the
Reserve Requirement.
Aggregate Delinquencies. Ifthe Treasurer determines that (i) the total amount of delinquent
Special Tax for the prior Fiscal Year for the entire District (including total individual delinquencies
described above) exceeds 5% of the total Special Tax due and payable for the prior Fiscal Year or
(ii) there are ten (10) or fewer owners of real property in the District, determined by reference to the
latest available secured property tax roll of the County, the Treasurer shall notii)' or cause to be
notified property owners who are then delinquent in the payment of Special Taxes (and demand
immediate payment of the delinquency) withm 45 days of such determination, and the Authority
will commence foreclosure proceedings within 90 days of such determination against each parcel
ofland in the District with a Special Tax delinquency.
It should be noted that any foreclosure proceedings commenced as described above could be stayed
by the commencement of bankruptcy proceedings by or against the owner of the delinquent property. See
"BONDOWNERS' RISKS - Bankruptcy and Foreclosure Delay."
No assurances can be given that a judicial foreclosure action, once commenced, will be completed
or that it will be completed in a timely manner. See "BONDOWNERS' RISKS - Potential Delay and
Limitations in Foreclosure Proceedings." If a judgment of foreclosure and order of sale is obtained, the
judgment creditor (the District) must cause a Notice of Levy to be issued. Under current law, a judgment
debtor (property owner) has 120 days from the date of service of the Notice of Levy and 20 days from the
subsequent notice of sale in which to redeem the property to be sold. If a judgment debtor fails to so redeem
and the property is sold, his only remedy is an action to set aside the sale, which must be brought within 90
days of the date of sale. If, as a result of such action, a foreclosure sale is set aside, the judgment is revived
and the judgment creditor is entitled to interest on the revived judgment as if the sale had not been made.
The constitutionality of the aforementioned legislation, which repeals the former one-year redemption
period, has not been tested; and there can be no assurance that, if tested, such legislation will be upheld. Any
parcel subject to foreclosure sale must be sold at the minimum bid price unless a lesser minimum bid price
IS authorized by the Owners of75% of the principal amount of the Bonds Outstanding.
No assurances can be given that the real property subject to sale or foreclosure will be sold or,
if sold, that the proceeds of sale will be sufficieut to pay any delinquent Special Tax installment. The
Act does not require the Authority or the District to purchase or otherwise acquire any lot or parcel
of property offered for sale or subject to foreclosure ifthere is no other purchaser at such sale. The
Act does specify that the Special Tax will have the same lien priority in the case of delinquency as for
ad valorem property taxes.
If delinquencies in the payment of Special Taxes exist, there could be a default or delay in payments
to the Owners of the 2003 Bonds pending prosecution of foreclosure proceedings and receipt by the District
of foreclosure sale proceeds, if any. However, within the limits of the Rate and Method of Apportionment
and the Act, the DIstrict may adjust the S!,ecial Taxes levied on all property within the District in future
Fiscal Years to provide an amount, taking mto account such delinquencies, required to pay debt service on
the 2003 Bonds. There is, however, no assurance that the maximum Special Tax rates will be at all times
sufficient to pay the amounts required to be paid on the 2003 Bonds and any Parity Bonds by the Fiscal
Agent Agreement.
16
Special Tax Fund
Pursuant to the Fiscal Agent Agreement, all Special Tax Revenues received by the District will be
deposited in the Special Tax Fund, which will be held by the Fiscal Agent on behalf of the District. Moneys
in the Special Tax Fund shall be held in trust by the Fiscal Agent for the benefit of the District and the
Bondowners. Pending disbursement, moneys in the Special Tax Fund will be subject to a lien in favor of
the Bondowners and the District established under the Fiscal Agent Agreement.
Disbursements. Moneys in the Special Tax Fund will be disbursed as needed to pay the obligations
ofthe District as provided in the Fiscal Agent Agreement. The Authority shall promptly remit any Special
Tax Revenues received by it to the Fiscal Agent for deposit by the Fiscal Agent to the Special Tax Fund.
Any Special Tax Revenues constituting payment of the portion of the Special Tax levy for Administrative
Expenses shall be deposited by the Treasurer in the Administrative Expense Fund and any proceeds of
Special Tax Prepayments shall be transferred by the Treasurer to the Fiscal Agent for deposit by the Fiscal
Agent directly in the Special Tax Prepayments Account established in the Bond Fund.
On each Interest Payment Date, the Fiscal Agent shall withdraw from the Special Tax Fund and
transfer the following amounts in the following order of priority (i) to the Bond Fund an amount, taking into
account any amounts then on deposit in the Bond fund and any expected transfers from the General Account
of the Improvement fund, the Reserve Fund, the Capitalized Interest Account and the Special Tax
Prepayments Account to the Bond Fund, such that the amount in the Bond Fund equals the principal
(including any sinking payment), premium, if any, and interest due on the Bonds on such Interest Payment
Date and (ii) to the Reserve Fund an amount, taking into account amounts then on deposit in the Reserve
Fund, such that the amount in the Reserve Fund is equal to the Reserve Requirement.
Investment. Moneys in the Annual Levy Account and the Prepayment Account ofthe Special Tax
Fund will be invested and deposited by the Authorized Officer as described in "Investment of Moneys in
Funds" below. Interest earnings and profits resulting from such investment and deposit will be retained in
the respective account from which the investment was made to be used for the purposes of such account.
Bond Fund
The Fiscal Agent will hold the Bond Fund in trust for the benefit of the Bondowners. There is
created in the Bond Fund, as separate accounts to be held by the Fiscal Agent, the Bond Payment Account,
the Capitalized Interest Account and the Special Tax Prepayments Redemption Account. Moneys in the
Bond Fund and the accounts therein shall be disbursed for the payment of the principal of, and interest and
any premium on, the Bonds and for the other purposes as provided below, and, pendmg such disbursement,
shall be subject to a lien in favor of the owners of the Bonds.
Special Tax Prepayments Account. Moneys in the Special Tax Prepayment Account shall be
transferred by the Fiscal Agent to the Bond Fund on the next date for which notice of redemption of Bonds
can timely be given under the Fiscal Agent Agreement and shall be used (together with any amounts
transferred form the Reserve Fund) to redeem Bonds on the applicable redemption date.
Capitalized Interest Account. Moneys in the Capitalized Interest Account shall be transferred to the
Bond Fund on the Business Day prior to each Interest Payment Date, in the amount equal to and to be used
for the payment of interest on the Bonds due on the next succeeding Interest Payment Date; provided that
no such transfer shall exceed the amount then on deposit in the Capitalized Interest Account.
Bond Fund. Moneys in the Bond Fund and the accounts therein shall be held in trust by the Fiscal
Agent for the benefit ofthe Owners of the Bond, shall be disbursed for the payment of the principal of, and
interest and any premium on, the Bonds as provided below, and, pending such disbursement, shall be subject
to a lien in favor of the Owners of the Bonds. On each Interest Payment Date, the Fiscal Agent shall
withdraw from the Bond Fund and pay to the Owners of the Bonds the principal, and interest and any
premium, then due and payable on the Bonds, including any amounts due on the Bonds by reason of the
sinking payments or an optional redemption ofthe Bonds. In the event that amounts in the Bond Fund are
insuffiCIent for the purposes set forth in the preceding sentence, the Fiscal Agent shall withdraw from the
Reserve Fund to the extent of any funds therein amounts to cover the amount of such Bond Fund
insufficiency. If, after the foregoing transfers, there are insufficient funds in the Bond Fund to make the
17
payments provided for above, the Fiscal Agent shall apply the available funds first to the payment of interest
on the Bonds, then to the payment of principal due on the Bonds other than by reason of sinking payments,
and then to the payment of principal due on the Bonds by reason of sinking payments. Any sinking payment
not made as scheduled shall be added to the sinking payment to be made on the next sinking payment date.
Investment. Moneys in the Bond Fund, the Capitalized Interest Account and the Special Tax
Prepayments Account shall be invested and deposited in accordance with the provisions of the Fiscal Agent
Agreement relating to Investment of Moneys. See APPENDIX E - "Summary of Certain Provisions of the
Fiscal Agent Agreement."
Administrative Expense Fnnd
The Fiscal Agent will receive the transfer of Special Taxes from the District from the Special Tax
Fund and deposit in the Administrative Expense Fund an amount to pay Administrative Expenses.
Pnrsuant to the Fiscal Agent Agreement, moneys in the Administrative Expense Fund will not
be construed as a trust fund held for the benefit ofthe Bondowners and will not be available for the
payment of debt service on the 2003 Bonds.
Investment of Moneys in Funds
Moneys in any fund or account created or established by the Fiscal Agent Agreement and held by
the Fiscal Agent will be invested by the Fiscal Agent in Permitted Investments, as directed by an Authorized
Officer, that mature prior to the date on which such moneys are required to be paid out under the Fiscal
Agent Agreement. In the absence of any direction from an Authorized Officer, the Fiscal Agent will invest,
to the extent reasonably practicable, any such moneys in money market funds rated in the highest rating
category by Moody's or S&P,[ (including those for which the Fiscal Agent or its affiliates or its subsidiaries
provide investment, advisory or other services)]. See APPENDIX E - "Summary of Certain Provisions of
the Fiscal Agent Agreement" for a definition of "Permitted Investments."
Rebate Requirement
The Authority is required to calculate excess investment eamings ("Excess Investment Eamings")
in accordance with the requirements set forth in the Fiscal Agent Agreement. The Authority shall calculate
Excess Investment Earnings and if necessary may use amounts in the Administrative Expense Fund and in
the Reserve Fund, and any other funds available to the District (except amounts required to pay debt service
on the 2003 Bonds), including amounts advanced by the Authority, 1D its sole discretion, to be repaid by the
District as soon as practicable from amounts described in the preceding clause, to satisfy its obligations
under Section I 48(t) of the Code.
Additional Bonds
Bonds may be issued on a parity with the 2003 Bonds (each a Series of "Additional Bonds"). See
APPENDIX E - "Summary of Certain Provisions of the Fiscal Agent Agreement." The District may issue
bonds or other obligations {'ayable from Special Taxes which are subordinate to the 2003 Bonds. The
Authority may issue one senes of bonds (the "Parity Bonds"), in addition to the 2003 Bonds authorized by
means of a Supplemental Agreement and without the consent of any Bondowners, upon compliance with
the provisions of the Indenture and subject to the following specific conditions precedent:
(A) Current Compliance. The Authority shall be in compliance on the date of issuance of the Parity Bonds
with all covenants set forth in the Indenture.
(B) Payment Dates; Level Debt Service. The Supplemental Agreement providing for the issuance of such
Parity Bonds shall provide that interest thereon shall be payable on March 1 and September I, and principal
thereof shall be payable on September 1 in any year in whIch principal is payable (provided that there shall
be no requirement that any Parity Bonds pay interest on a current basis). The final maturity of the Parity
Bonds may be later than the final maturity of the 2003 Bonds; however, the Debt Service on the Bonds
following the issuance of the Parity Bonds shall not vary in any future full Bond Year by more than $25,000
from that payable in any other full Bond Year following such issuance.
18
(C) Funds and Accounts; Reserve Fund Deposit. The Supplemental Agreement providing for the issuance
of such Parity Bonds may provide for the establishment of separate funds and accounts, and shall provide
for a deposit to the Reserve Fund in an amount necessary so that the amount on deposit therein, following
the issuance of such Parity Bonds, is equal to the Reserve Requirement.
(D) Value-to-Lien Ratio. The District Value shall be at least three times the sum of: (i) the aggregate
principal amount of all Bonds then Outstanding, plus (ii) the aggregate principal amount of the series of
Parity Bonds proposed to be issued, plus (iii) the aggregate principal amount of any fixed assessment liens
on the parcels in the District subject to the levy of Special Taxes, plus (iv) a portion of the aggregate
principal amount of any and all other community facilities district bonds then outstanding and payable at
least partially from special taxes to be levied on parcels of land within the District (the "Other District
Bonds") equal to the aggregate principal amount of the Other District Bonds multiplied by a fraction, the
numerator of which is the amount of special taxes levied for the Other District Bonds on parcels of land
within the District, and the denominator of which is the total amount of special taxes levied for the Other
District Bonds on all parcels of land against which the special taxes are levied to pay the Other District
Bonds (such fraction to be determined based upon the maximum special taxes which could be levied in the
year in which maximum annual debt service on the Other District Bonds occurs), based upon information
from the most recent available Fiscal Year.
(E) The Special Tax Coverage. The Authority shall obtain a certificate of a Tax Consultant to the effect that
(i) the amount of the maximum Special Taxes that may be levied in each Fiscal Year, less an amount
sufficient to pay annual Administrative Expenses (as determined by the Treasurer), shall be at least one
hundred ten percent (110%) of the total Annual Debt Service for each such Fiscal Year on the Bonds and
the proposed Parity Bonds, and (ii) the sum of the Assigned Special Tax that may be levied on Developed
Property and the maximum Special Tax that may be levied on Approved Property (as such terms are defined
in the Rate and Method of Apportionment of Special Taxes for the District) in the next Fiscal Year, based
upon the status of the land in the District as ofthe date of issuance ofthe Parity Bonds, shall not be less than
the aggregate maximum Annual Debt Service on the Bonds and the proposed Parity Bonds.
(F) Other Requirements. (i) Either (a) there shall have been issued by the City, prior to the issuance of the
Parity Bonds, at least 28 building permits for the construction of dwelling units in Tract No. 26941 of the
District; or (b) in making the calculation referred to in clause (ii) of Section (E) above, it shall be assumed
that the lots in Tract No. 26941 of the District will provide no more than $143,808 in aggregate annual
Special Taxes. (ii) There shall be only one series of Parity Bonds. (iii) The delinquency rate for Special
Taxes levied on Undeveloped Property and any Approved Property in Zone I (as such terms are defined in
the Rate and Method of Apportionment of Special Taxes for the District) in the most recent Fiscal Year for
which information is available shall not be 10 excess of five percent of the total Special Tax levy for such
Fiscal Year; and, in any event, the amount on deposit in the Reserve Fund immediately after the issuance
of the Parity Bonds shall be not less than an amount equal to the then Reserve Requirement.
Notwithstanding the foregoing, the Authority may issue Refunding Bonds as Parity Bonds without the need
to satisfy the requirements of clauses (D), (E) and (F) above, and without limitation on the number of series
of such Refundmg Bonds.
Nothing in the Indenture shall prohibit the Authority from issuing bonds or otherwise incurring debt secured
by a pledge of Special Tax Revenues subordinate to the pledge thereof.
THE AUTHORITY
The Temecula Public Financing Authority was established pursuant to a Joint Exercise of Powers
Agreement, dated April 10, 2001 (the "Joint Powers Agreement"), by and between the City and the
Redevelopment Agency of the City of Temecula. The Joint Powers Agreement was entered into pursuant
to the provisions of Articles I through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title
I of the Government Code of the State of California. The Authority was formed for the primary purpose
of assisting in the financing and refinancing of public capital improvements in the City.
The Authority is administered by a five-member Board of Directors, which currently consists of the
members of the City Council ofthe City. The Authority has no independent staff. The Executive Director
of the Authority is the City Manager of the City, and the Treasurer of the Authority is the City's Finance
19
Director. The Executive Director administers the day-to-day affairs of the Authority, and the Treasurer has
custody of all money of the Authority from whatever source.
Authority for Issuance
The 2003 Bonds are issued pursuant to the Act and the Fiscal Agent Agreement. In addition, as
required by the Act, the Board of Directors of the Authority has taken the following actions with respect to
establishing the District and authorizing issuance of the 2003 Bonds:
Resolutions of Intention: On January 28, 2003, the Board of Directors of the Authority
adopted Resolution No. TPF A 03- I stating its intention to establish the District and to authorize the
levy of a special tax therein, and on the same day the Authority adopted Resolution No. TPF A 03-02
stating its intention to incur bonded indebtedness in an amount not to exceed $25,000,000 within
the DIstrict for the purpose of financing the cost of certain public improvements (the "Facilities")
and to eliminate an existing special assessment lien (the "Prior Lien"). See "PLAN OF FINANCE;
IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OF THE 2003 BONDS" herein.
Resolution of Formation: Immediately following the conclusion of a noticed public hearing
on March 25, 2003, the Authority adopted Resolution No. TPF A 03-05 (the "Resolution of
Formation"), which established the District and authorized the levy of a special tax within the
District.
Resolution of Necessity: On March 25, 2003, the Authority adopted Resolution No. TPF A
03-06 declaring the necessity to incur bonded indebtedness in an amount not to exceed $25,000,000
within the District and submitting that proposition to the qualified electors of the District.
Resolution Calling Election: On March 25, 2003, the Authority adopted Resolution No.
TPFA 03-07 calling an election by the landowners for the same date on the issues of the levy of the
Special Tax, the incurring of bonded indebtedness and the establishment of an appropriations limit.
Landowner Election and Declaration of Results: On March 25, 2003, an election was held
within the District in which the landowners eligible to vote, being the qualified electors within the
District, unanimously waived all time limits for holding the election and ballot arguments, and
approved a ballot proposition authorizin!;\ the issuance of up to $25,000,000 in bonds to finance the
costs of the Facilities and the costs ofehminating the Prior Lien, the levy ofa special tax and the
establishment of an appropriations limit for the District. On March 25, 2003, the Authority adopted
Resolution No. TPF A 03-08, pursuant to which the Authority approved the canvass of the votes and
declared the District to be fully formed with the authority to levy the Special Taxes, to incur the
bonded indebtedness and to have the established appropriations limit. The landowner election was
ratified at proceedings conducted on May 13,2003.
Special Tax Lien and Levy: A Notice of Special Tax Lien was recorded in the real property
records of Riverside County on April 4, 2003 as Document No. 2003-238653. An Amended Notice
of Special Tax Lien was recorded in the real property records of Riverside County on May 19,2003
as Document No. 2003-358388.
Ordinance Levyinf? Special Taxes: On April 8, 2003, the Authority adopted an ordinance
levying the Special Tax wtthm the District.
Resolution Authorizing Issuance of the 2003 Bonds: On June [24], 2003, the Authority
adopted Resolution No. TPFA 03-01 approving issuance of the 2003 Bonds.
20
THE COMMUNITY FACILITIES DISTRICT
Location and Description of the District
The District consists primarily of mass graded unimproved land located in the easterly portion of
the City ofTemecula, in the south-westerly portion ofthe County. The District is bounded generally on the
21
west by Butterfield Stage Road, on the north by Pauba Road and by Route 79 on the south. The property
within the District is governed by the Butterfield Stage Ranch Specific Plan.
The Lennar Entities currently own or have rights under contracts with LENOne and PCC 100 with
respectto approximately 556 home sites (approximately 119.92 net acres of property) in the District and are
planning it for development with a mixture of residential, parks, and open space uses. KB Home Coastal
owns 212 single family detached home sites (approximately 40.39 net acres). As of March 15, 2003, of the
212 units, 53 were complete or under construction. PCC III owns property containing 28 custom estate
home sites (approximately 101.6 net acres). See "THE COMMUNITY FACILITIES DISTRICT - Property
Ownership" herein.
Utility services for parcels in the District will be provided by Southern California Edison
(electricity), Southern California Gas Company (natural gas), CR&R Disposal (refuse collection), EMWD
(sewage), Rancho California Water District (water), Riverside County Flood Control District (storm water),
[AT&T and Broadband] (cable-Zone I), Media One (cable-Zone 2) and Verizon (telephone). Schools are
located in the Temecula Valley Unified School District.
Specific Plan
The Butterfield Stage Ranch Specific Plan was adopted in November 1987 by the County. The
Butterfield Stage Ranch Specific Plan serves as a planning guide for development of the property in the
District. The Butterfield Stage Ranch Specific Plan development concept includes residential
neighborhoods, landscape buffers, homeowners' association private-owned park sites, open space and
equestrian trails.
Environmental Conditions
Environmental Impact Report. In connection with the Butterfield Stage Ranch Specific Plan
approval, the owner at that time was responsible for the application and processing of Environmental Impact
Report No. 230 (the "EIR") for the property encompassed by the Butterfield Stage Ranch Specific Plan. The
ElR was certified March 1988 (SCH NO. 87030927). A Phase I Environmental Site Assessment was
approved in November 1997. The Phase I Environmental Site Assessment identified dumped material
located throughout the property and a former above ground storage tank site and vault area in the eastern
portion of the site, north of Lisa Road and Cee Cee Lane. The report concluded that the site had a low risk
of contamination. The identified materials have been removed by a prior owner and Lennar Homes is not
aware of any adverse conditions relating to the property.
Endangered Species Act Permit. On July 23, 2002, Lennar Homes assumed PCC Ill's obligations
under Endangered Species Act Permit TE03500-0. Lennar Homes is responsible for implementing
remaining measures and Lennar Communities is presently managing the remaining measures. The permit
authorizes incidental take of certain federally threatened species, including coastal California gnatcatcher,
endangered species including Quino checkerspot butterfly and Riverside fairy shrimp and certain listed
sensitive species. Lennar Homes is subject to compliance with, and implementation of Assessment District
No. 161 Multiple Species Subarea Habitat Conservation Plan and Implementation Agreement. The
development is not Within Assessment District No. 161, but is within the Subarea Habitat Conservation Plan
area. Lennar Communities has completed grading of the property in compliance with the applicable
requirements.
Biological Resources. Based upon the biological studies performed for the site, the property within
the District does not include significant onsite biological resources. The Butterfield Stage Ranch Specific
Plan proposes two public park sites (3.5 acres and 5.1 acres) and five (5) private parks to be developed
consistent with the mitigatIOn requirement of the U.S. Army Corps of Engineers and State Department of
Fish and Game.
Mitigation Relating to Waters of the United States. The U.S. Army Corps of Engineers has
jurisdiction over developments in or affecting the navigable waters of the United States pursuant to the
Rivers and Harbors Act and the Clean Water Act. The development within the District is expected to impact
approximately 0.7 acre of non-vegetated water ofthe U.S. In order to compensate for the project's impacts
to water of the U.S., in August 2001, the prior owner and the U.S. Army Corps of Engineers entered into
a mitigation agreement that the owner create or restore 2.38 acres of water of the U.S., including creation
22
of six vegetated detention basins, and creation or restoration at four locations on-site, as stated in the April
2003 Crowne Hill Mitigation and Monitoring Plan, a condition of the U.S. Army Corps of Engineers, and
agreed to by such agency. These four mitigation areas will be maintained as open space in perpetuity. The
period for completlOn of the work ends on July 9, 2004 but is subject to extension. The millgation
agreement was obtained by a prior owner of the property and Lennar Homes assumed the agreement on
_' [On July 9, 2001, the U.S. Army Corps of Engineers determined that the activity complied with the
terms and conditions of the nationwide permit issued under Section 404 of the Clean Water Act, provided
that the activity met the criteria in the permit terms and conditions. The Section 40 I Water Quality
Certification was agreed to by the California Regional Water Quality Control Board (San Diego Division)
on January 15,2002.
Streambed Alteration Agreement. A predecessor owner to LENOne filed a request for a Section
1603 Streambed Alteration Agreement with the California Department ofFish and Game ("CDFG"). The
CDFG and Lennar [Homes/Communities] (as successor to Crowne Meadows, L.P.) entered into an
Agreement Regarding Proposed Stream or Lake Alteration on February 7,200 I to fill 0.92 acres of "waters
of the State" and mitigate with three restored drainages and one wetland basin, totaling 2.38 acres. It was
assumed that Ihe Streambed Alleration Agreement #6-140-00 was agreed to because CDFG did not respond
within the response period.
National Pollution Discharge Elimination System Permit and Storm Water Pollution Prevention
Plan. Pursuant to the Federal Clean Water Act (Section 402(g)) and State General Construction Activity
Storm Water Permit, a National Pollution Discharge Elimination System (NPDES) permit and storm water
pollution prevention plan was required from the California Regional Water Quality Control Board (San
Diego Region) for grading and construction of areas greater than five acres. Lennar Communities had a
revised Storm Water Pollution Prevention Plan prepared for the project in conformance with the California
NPDES General Permit No. CAS 000002 for Storm Water Discharges Associated with Construction Activity
(Construction Permit). The permit and storm water pollution prevention plan were approved by the
California Regional Water Quality Control Board (San Diego DivislOn) on February 1,2002 by Order 99-08.
The prior owner obtained a SectlOn 401 Water Quality Certification for Discharge of dredged and/or fill
materials in June 200 I and was granted an amendment in January 2002 to use vegetated water quality basins
instead of [explain CDS] and fossil fillers. The proposed discharge from the Crowne Hill project
will comply WIth the applicable provisions of the Clean Water Act.
Toxic materials are not known to have been treated, stored, disposed, spilled or leaked in significant
quantities onto the project site and no contaminated soils were found on the site. Prior to rough grading, the
land was maintained as natural open space. The property was vacant for some time before being acquired
by the current owners. No significant spills or disposals of gasoline or diesel fuel are known to have
occurred.
Other Matters
Nearby Airports. The Billy Joe Airport (private small aircraft facility) is located approximately one
half mile east of the District. The French Valley Airport is located approximately 4.4 miles southwest of
the District.
Additional Approvals. Additional discretionary approval is needed for development in the District
as contemplated by the ElR that would require additional environmental review by the City under the
California Environmental Quality Act and the Lennar Entities do not anticipate such discretionary approvals
will materially adversely affect development of the property within the District.
Covenants, Conditions and Restrictions. All of the parcels in the District are subject to recorded
covenants, conditions and restrictions that provide for a levy of homeowners , association assessments, on
a basis subordinate to the lien of the Special Taxes.
Acquisition of Improvements
The Authority and Lennar Homes have entered into an Acquisition Agreement (the "Acquisition
Agreement") dated as of March 1,2003. Under the terms of the Acquisition Agreement, the Authority will
acquire the Improvements from Lennar Homes upon completion of various discrete components of
infrastructure and inspection thereofby the City. The Acquisition Agreement provides that the infrastructure
23
will be acquired for an amount based upon the docwnented Actual Cost (as defined in the Acquisition
Agreement) thereof or for such other amount as may be agreed upon by Lennar Homes and the Authority.
Property Ownership
The information about Lennar Communities, Lennar Homes, Greystone Homes, US Home, LENOne,
KB Home Coastal, PCC 100, PCC III and Pacific Century Homes contained in this Official Statement has
been provided by representatives of Lennar Homes, KB Home Coastal, PCC 100, PCC III and Pacific
Century Homes and has not been independently confirmed or verified by the Underwriter, the District or
the Authority. Such iriformation is included because it may be relevant to an informed evaluation of the
security for the 2003 Bonds. However, because ownership of the property may change at any time, no
assurance can be given that the planned development will occur at all, will occur in a timely manner or will
occur as presently anticipated and described below or that Lennar Homes, Greystone Homes, LENOne, KB
Home Coastal, PCC 100 or PCC III will acquire or own the property within the District at all. No
representation is made herein as to the accuracy or adequacy of such iriformation, as to the experience,
abilities or financial resources of Lennar Communities, Lennar Homes, Greystone Homes, US Home,
LENOne, KB Home Coastal, PCC 100, PCC III or Pacific Century Homes or any other landowner, or as
to the absence of material adverse changes in such information subsequent to the date hereof, or that the
information given be/ow or incorporated herein by reference is correct as of any time subsequent to its date.
Lennar Communities, Lennar Homes, Greystone Homes, US Home, LENOne, KB Home Coastal,
PCC 100, PCC III and Pacific Century Homes are not personally liable for payment of the Special Taxes
or the 2003 Bonds, and the following information should not be construed to suggest that the Special Taxes
or the 2003 Bonds are personal obligations or indebtedness of Lennar Communities, Lennar Homes,
Greystone Homes, US Home, LENOne, KB Home Coastal, PCC 100, PCC III or Pacific Century Homes or
that Lennar Communities, Lennar Homes, Greystone Homes, US Home, LENOne, KB Home Coastal, PCC
100, PCC III or Pacific Century Homes will continue to own the Property.
Description of Project.
Of the approximately 261.91 net acres ofland encompassing the District, US Home and Greystone
Homes are developing approximately 101.44 net acres planned for development of approximately 456 single
family detached units and Lennar Homes is developing approximately 18.48 net acres planned for
development of 100 single family detached units. Approximately 40.39 net acres were acquired by KB
Home Coastal for development of approximately 212 single family detached units. PCC III owns
approximately 10 1.6 net acres proposed for development of 28 custom estate home sites. Table I below
sets forth information regarding the projects being developed in the District.
24
Table 1
Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill)
Property Ownership and Development Status
Units
Completed
Total or Under
Name of Number Construction Net Status
Landownerl Development of as of Taxable of Status of Development
Merchant Builder Name Units March 15, 2003 Acreage Maps as of March 15,2003
LENOne-US Home Stratford 114 0 25.38 Final map Rough graded; final map
recorded 1115/92.
LEN One - Nottingham 119 0 24.88 Final map Rough graded; final map
Greystone Homes recorded 12/31/01.
LEN One - Astoria III 0 29.47 Final map Rough graded.; final map
Greystone Homes recorded 12/31/01.
PCC 100- Lennar Carlyle 100 0 18.48 Final map Rough graded; final map
Homes recorded 12/31/01.
LEN One - Fairmant 95 0 18.61 Final map Rough graded; final map
Greystone Homes recorded 12/31/01.
Greystone Homes. Fairmant 17 0 3.10 Final map Rough graded; final map
Greystone Homes recorded 12/31/01.
KB Home Coastal - Knightsbridge 127 34 21.62 Final map Final map recorded
KB Home Coastal 12/31/01. 3 models and 31
production units under
construction.
KB Home Coastal- Hampton 85 19 18.77 Final map Graded lots; final map
KB Home Coastal recorded 1/31/0 I. 2 model
units completed and 17
production units under
construction.
pee III - Pacific Estate Lots ~ -.fr 101.60 Tentative Rough graded; final map
Century Homes map est. to record during June
2003.
Total 796 53 261.91
Source: Development Plan from Lennar Communities.
Lennar Corporation and its Subsidiaries Lennar Communities, Lennar Homes, Greystone Homes and
US Home; LENOne
Lennar Corporation and its Subsidiaries. Leonar Homes of California, Inc. ("Leonar Homes") is
a California corporation based in Mission Viejo, California, that has been in the business of developing
residential real estate communities in California since 1995. Leonar Homes is a wholly-owned subsidiary
of Leonar Homes Inc., a corporation, which is a wholly-owned subsidiary of Lennar
Corporation, a Delaware corporatIOn ("Leonar Corporation"), with headquarters in Miami, Florida. Leonar
Corporation, founded in 1954 and publicly traded under the symbol "LEN" since 1971, is one of the nation's
largest home builders, operating under a number of brand names, including Leonar Homes, US Home and
Greystone Homes in Southern California. As of November 30, 2002 (Leonar Corporation's fiscal year-end),
Leonar Corporation employed over 9,419 individuals, of whom approximately 6,053 were involved in
homebuilding operations and 3,366 were involved in financial services operations, and owned approximately
70,000 homesiles and had access to an additional 99,000 homesites through options or unconsolidated
partnerships.
Leonar Communities, US Home, Greystone Homes and Leonar Homes are, through various levels
of ownership, subsidiaries of Leonar Corporation. LEN One is not an affiliate of any ofthe Leonar Entities.
A brief description of each is provided below.
LeonarCommunities is involved in the management and acquisition of residential real estate projects
in Southern California. Lennar Communities is not a merchant builder of production homes.
25
US Home is a merchant builder of production homes and has been involved in the acquisition and
development of residential real estate projects in Southern California since 1995. US Home develops
residential communities both within the Lennar family of builders and through consolidated and
unconsolidated partnerships in which US Home maintains an interest. In fiscal year 2002, US Home
delivered homes to in excess of 866 families in the Inland Empire area of Southern California. Recent
projects under development by US Home in Southern California include the following:
Proposed
Site Name Location Units Base Prices Square Feet Bedrooms Status
Provenance Corona 118 $339,990-$395,990 2,395 - 5,123 3-6 Sold out
EntradaN entana East Highlands 330 $251,990-$332,990 1,760 - 3,816 4-7 Active
Autumnwood F ootana 97 $268,990-$309,990 1,883 - 2,921 3-4 Sold out
Remington F oolana 123 $323,990-$350,990 2,983 - 3,400 5 Active
Camargo Murrieta 67 $285,990-$295,990 1,980 - 2,484 2-3 Active
Canterbury Murrieta 107 $309,990-$355,990 2,617 - 3,684 3-5 Sold out
Magnolia Murrieta 73 $350,990-$390,600 3,399 - 3,800 4-6 Active
Mariposa Murrieta 61 $297,000-$326,800 2,740 - 3,282 3-4 Active
Auburn Village Murrieta 82 $294,990-$311,990 2,973 - 3,399 4-5 Sold out
Rockhurst Rancho Cucamonga 113 $379,000-$434,000 2,811 - 3,508 4-6 Active
Greystone Homes is a subsidiary of US Home and is a merchant builder of production homes and
has been involved in the acquisition and development of residential real estate projects in Southern
California since 1991. Greystone Homes develops residential communities both within the Lennar family
of builders and through consolidated and unconsolidated partnerships in which Greystone Homes maintains
an interest. In fiscal year 2001-02, Greystone Homes delivered homes to in excess of 676 families in
Southern California. Recent projects under development by Greystone Homes in the Inland Empire area
of Southern California include the following:
Proposed
Site Name Location Units Base Prices Square Feet Bedrooms Status
Chelsea County of Riverside 137 $269,000-$386,000 1,964 - 4,115 5 Phase 5
(Temecula)
Villas Murrieta 228 $218,000-$221,000 1,408 - 1,654 4 Phase 4
Springfield Hemet 158 $169,000-$236,000 1,377 - 3,092 6 Phase 6
Verona Murrieta 304 $149,000-$188,000 730 - 1,031 2 Models/
Phase 1
Reserve II Beaumont 73 $167,000-$199,000 1,377 - 2,665 7 Phase 2
Farm Fairways 11 Beaumont 64 $195,000-$235,000 1,760 - 3,092 6 Phase 1
Rancho La County of Riverside 97 $295,000-$329,000 2,641 - 3,245 4 Models
Laguna (Lake Elsinore)
Ashville T emecula 62 $200,000 1,650 - 2,170 4 New
Meadowbrook Hemet 196 $200,000 1,977 - 3,092 6 New
Lennar Homes has been involved in the acquisition and development of residential real estate projects
in Southern California since 1995. Lennar Homes develops residential communities both within the Lennar
family of builders and through consolidated and unconsolidated partnerships in which Lennar Homes maintains
an interest. Representative master planned communities include: (i) Coto de Caza, an approximately 2,000
home development in South Orange County acquired in March of 1996 and substanl1ally sold out, (ii)
Stevenson Ranch, to consist of approximately 5,700 homes at build out in Los Angeles County, California, (iii)
Bressi Ranch, an approximately 500 acre mixed use community in Carlsbad, California which recently
commenced grading, (iv) Greer Ranch, an approximately 674 home gate-guarded community in Murrieta,
California, which has sold 149 homes since the September, 2002 grand opening, and (v) The Bridges at Rancho
26
Santa Fe, an exclusive, gated residential enclave located in San Diego, California, consisting of approximately
274 custom homesites and semi-custom homes in a private golf course setting.
LENOne. LENOne is a Virginia corporation that acquired property previously owned by PCC III and
PCC II1-Crowne Hill 112, LLC, a Delaware limited liability company. LEN One has entered into three Option
Agreements and three Construction Agreements described below. It has no present intention of developing the
property itself other than through the Option Agreements and ConstructIOn Agreements described below.
Neither LENOne nor any entity with a direct or indirect ownership interest in it has any obligation of any kind
whatsoever to advance any funds for the development of LENOne's property in the District or to pay the
Special Tax applicable to such property.
As of March 15, 2003, LENOne owned property containing 439 home sites within the District.
Pursuant to the provisions of the Option Agreements described below, LENOne granted Lennar Homes and
Greystone Homes, or their assignees, the right, but not the obligation, to purchase all ofthe original 456 home
sites subject to such Agreements. 114 of such home sites are expected to be developed by US Home and 342
of such home sites are expected to be developed by Greystone Homes, including 17 of such home sites which
were transferred to Greystone Homes on December 20, 2002.
Option Agreements and Construction Agreements. On or about August 30, 2002, LEN One entered into
three separate sets of agreements with Lennar Homes, Greystone Homes, and Lennar Communities for parcels
in the District owned by LENOne. The separate sets of agreements consisted of Option Agreements and
Construction Agreements pertaining to home sites in the Stratford, Nottingham, Astona and Fainnont tracts.
The agreements relate to 213,131 and 112 parcels, respectively and are located throughout the development
projects ofthe Lennar Entities described below. The Option Agreements and the Construction Agreements do
not apply to the 212 home sites owned by KB Home Coastal, the 100 home sites owned by PCC 100 or the 28
home sites owned by PCC III. The agreements for each area are described below. The Option Agreements
were each amended on October 9, 2002 by a First Amendment to Option Agreement. As used herein, the tenns
"Option Agreements" and "Construction Agreements" refer to all of the Option Agreements and Construction
Agreements for each of the three areas.
US Home is not a party to the Option Agreements or the Construction Agreements. However, US
Home is part ofthe Lennar Corporation family of merchant builders. US Home will develop the 114 home sites
known as the Stratford tract for LENOne, the owner of the 114 home sites. US Home will take title to these
home sites once Lennar Homes and Greystone Homes exercise the option under the Option Agreement(s)
pertaining to the 114 home sites in the Stratford tract.
Pursuant to the Option Agreements, in the event that Lennar Homes or Greystone Homes does not
perfonn, LEN One has the right to accelerate the option and Lennar Homes or Greystone Homes has the right
to purchase all, but not less than all, of the property owned by LEN One not later than the 10" business day after
the date of any notice sent by LEN One of LENOne' s acceleration of the option. In the event that the optionees
do not perfonn, the optionees are obligated to take all actions reasonably requested by LEN One to facilitate
LENOne's continued development and sale of the remaining home sites.
Lennar Homes or Greystone Homes, as "Optionee," also has the right to designate a third party
purchaser of home sites and to require LEN One to transfer title to said home sites directly to a third party
purchaser.
Under the tenns of the Option Agreements, Lennar Homes and Greystone Homes have the right but
not the obligation to purchase all of LEN One's home sites covered by each respective Option Agreement on
a fixed schedule at prices ranging from $84,480 to $97,665 per lot depending on location, in consideration of
(a) the posting of a lot option deposit and payment of a due diligence fee by Greystone Homes and Lennar
Homes, (b) the continuing payment of lot option extension fees by Greystone Homes and Lennar Homes, and
(c) the perfonnance of the obligations of Lennar Homes and Greystone Homes under each respective Option
Agreement and other project documents, including each respective Construction Agreement.
27
The scheduled takedown of LEN One's home sites for each area covered by the Option Agreements is
set forth in the following table.
Table 2
Takedown Schednle and Option Price
Date of
Scheduled
Acquisition Crowne Hill 213 Area Crowne Hill 131 Area Crowne Hill 112 Area
No. of No. of No. of
Home Sites Option Home Sites Option Home Sites Option
to be Acqd. Price to be Acqd. Price to be Acqd. Price
March 2003 18(1) $1,520,640
May 2003 18(2) 1,520,640
June 2003 18(3) $ 1,660,950 18(4) $ 1,757,970
August 2003 18 1,520,640
September 2003 18 1,660,950 18 1,757,970
November 2003 18 1,660,950 18 1,520,640
December 2003 18 1,757,970
January 2004 18 1,660,950
February 2004 18 1,520,640
March 2004 18 1,660,950 18 1,757,970
May 2004 18 1,660,950 17 1,436,160
June 2004 18 1,757,970
July 2004 18 1,660,950 5 422,400
September 2004 18 1,660,950 18 1,757,970
November 2004 18 1,660,950
December 2004 18 1,757,970
February 2005 18 1,660,950
April 2005 18 1,660,950 5 488,325
June 2005 ...ll 1.384.125
Totals 213 $19,654,575 131 $12,794,115 112 $9,461,760
(1) 17 home sites were acquired by Greystone Homes on December 20, 2002. [On ----J 2003, LENOne waived the requirement for the
18" lot to be acquired by March 2003.]
(2) 18 home sites were acquired by on June -' 2003.
(3) 18 home sites were acquired by on June ,2003.
(4) 18 home sites were acquired by on June,= 2003.
Source: Lennar Homes.
Greystone Homes and Lennar Homes are obligated to pay to LEN One a monthly lot ol'tion extension
fee which is based on the average daily "outstanding expenses" for a month times an average daily floating rate
for the month times the number of days in the month. "Outstanding expenses" include the original purchase
price LEN One paid plus all amounts LEN One pays, including construction progress payments under the terms
of each respective Construction Agreement discussed below, less amounts received by LEN One in connection
with the sale of the home sites. Greystone Homes and Lennar Homes have posted the lot option deposit and
have paid the due diligence fee, are current in the payment of the monthly lot option extension fees, and have
performed or are performing their obligations as provided in the Option Agreements and other project
documents.
28
All of the 456 home sites that LEN One acquired in the District were unfinished home sites requiring
additional improvements before the home sites could be ready for development. Pursuant to each respective
Construction Agreement, LENOne engaged Greystone Homes and Lennar Homes as LENOne's construction
manager, developer and general contractor to cause certain improvements to be constructed in order to improve
the unfinished borne sites to fmished home sites. The description ofthose improvements to be constructed and
the schedule for completing each improvement is summarized in the followmg table.
Table 3
Construction Schedule to Improve Unfinished Home Sites Owned by LEN One
Completion Date (Assumes Last Day of Month)
Crowne Hill Crowne Hill Crowne Hill
Description of Improvement 213 Are. 131 Are. 112 Are. St.tns
Rough Grading November 2002 November 2002 November 2002 Complete
Underground Sewer Improvements December 2002 December 2002 September 2002 Complete
Underground Storm Drain January 2003 January 2003 October 2002 Complete
Improvements
Underground Domestic Water February 2003 February 2003 November 2002 Complete
Improvements
Street improvements July 2003 April 2003 December 2002 Complete for 131
and 112 Areas
Underground Dry Utilities August 2003 July 2003 January 2003 Complete for 112
Area
Sidewalk and Drive Approaches February 2005 February 2005 February 2005 Complete for 112
Area
R & R - Bond Release Work June 2005 April 2005 May 2005
Subject to the satisfaction of all conditions to reimbursement for the costs of constructing the
improvements, LENOne is required to reimburse Lennar Homes or Greystone Homes, as applicable, for the cost
of the components of work identified in the budget included in each Construction Agreement. If, following
completion of any component of work, the actual cost of completion of such component exceeds the portion
of the amount allocated to such component in the budget, Lennar Homes is solely responsible for paying the
amount of costs required to complete such component. The budget may, however, be modified with the
approval of LEN One to increase the amount budgeted for a component of work if there are demonstrated
savings in unperformed components of work so that the modified budget will not exceed the total amount of
the original budget. The following table summarizes the budget included in each Construction Agreement to
improve LENOne's unfinished home sites to finished home sites. As of March IS, 2003, approximately
$ I 1,800,000 of the estimated budget for the Crowne Hill 213 area has been expended, approximately
$5,762,000 of the estimated budget for the Crowne Hill 131 area has been expended and approximately
$6,203,000 of the estimated budget for the Crowne Hill 112 area has been expended. The improvement costs
are greater than the aggregate estimated costs.
29
Table 4
Budget for Construction to Improve Unfinished Home Sites Owned by LEN One
Crowne Hill Crowne Hill
Components of Work 213 Area 131 Area Crowne Hill 112
to be Performed Amount Amount Area Amount
Consultants $854,763 $516,644 $322,600
Bonds 123,380 77,882 570,092
Fees and Permits 2,296,890 1,402,051 1,048,443
Grading 1,930,784 1,150,151 899,866
Pipeline 1,184,556 825,086 589,101
Public Utilities 676,249 393,776 315,536
Street Improvements 1,630,930 1,120,504 816,510
Walls and Landscaping 2,429,043 1,477,241 1,069,509
Variable Costs 184.787 113.725 89.734
Total $9,007,770 $5,731,170 $4,345,793
Description of Lennar Merchant Builder Projects. US Home is not a party to the Option Agreements
or the Construction Agreements. However, US Home is part of the Lennar Corporation family of merchant
builders. US Home will take title to the 114 home sites (approximately 25.38 net acres) known as the Stratford
tract once Lennar Homes and Greystone Homes exercise the options under the Option Agreements pertaining
to the 114 home sites in the Stratford tract. As of June ,2003, these are currently vacant home sites which
are in a partially finished condition. As of June , 2003;t1i.ere are currently models and /no production
units under construction. The model homes are estimated to range from 2,617 to 3,684 square feet and are
estimated to be completed during [June] [the second quarter] of2003. The project is antiCIpated to open for
sales by June 30, 2003, and opening sales prices are currently projected to range from $315,000 to $380,000.
Greystone Homes is developing 342 home sites in the District. The home sites are being developed
as Nottingham, Astoria and Fairmont. As of June 2003, there were vacant home sites which were III a
partially finished condition. As of June _' 2003,lIiere were _ models and _ production units under
construction by Greystone Homes. Title to 17 home sites was transferred by LEN One to Greystone Homes on
December 20,2002. The model homes are estimated to range from 2,283 to 3,962 square feet and are estimated
to be completed during [JUNE] [the second quarter] of2003. The projects are anticipated to open for sales in
the third quarter of2003, and opening sales prices are currently projected to range from $294,000 to $395,000.
Lennar Homes is developing 100 home sites in the District. The home sites are being developed as
Carlyle. As of June _,2003, there are currently vacant home sites which are in a partially finished condition.
As of June _' 2003, there are currently ~no models and no production units under construction. The
model homes are estimated to range from 2,200 to 2,740 square feet and are estimated to be completed during
[June] [the second quarter] of2003. The project is anticipated to open for sales in the third quarter of2003, and
opening sales prices are currently projected to range from $290,000 to $310,000.
30
The development which constitutes the Lennar Merchant Builders' projects, together with the estimated
lot sizes, unit sizes and base sales price ranges, are set forth below.
Minimum Estimated
Lot Size Unit Size Estimated Base
Project Name (Sqnare Feet) (Square Feet) Sales Price Range Total Units
US Home
Stratford 7,144 2,617 - 3,684 $315,000 - $380,000 114
Greystone Homes
Nottingham 7,000 2,621 - 3,322 $324,125 - $364,125 119
Astoria 7,157 2,891 - 3,962 $330,000 - $395,000 III
Fairmont 5,998 2,283 - 2,925 $294,200 - $314,200 112
342
Subtotal LEN One Home Sites 456
Lennar Homes
Carlyle 5,001 2,200 - 2,740 $290,000 - $310,000 100
Total Lennar Merchant Builder
Home Sites 556
Status of Pennits and Approvals. A final map encompassing all but the 28 custom estate home sites
was recorded on December 31, 200 I. Pursuant to internal arrangements among Lennar Communities and the
Lennar Merchant Builders, Lennar Communities is obligated to deliver finished home sites to Lennar Homes,
Greystone Homes and US Home.
Lennar Communities completed rough grading of the property in January 2003. Backbone
infrastructure improvements, includmg water, sewer, dramage, street iml?rovements, paving and street lights
are under construction in the District. As of March 15,2003, rough gradmg was complete, 99% of the sewer
and water was installed, stonn drains improvements were approximately 90% complete, street improvements
were approximately 90% complete, dry utilities (gas and electric) had commenced and were approximately 30%
complete. Perimeter walls on Crowne Hill Drive were under construction and are approximately 60% complete.
An approximately 3.5 acre public park was 100% complete. A second 5.1 acre park is estimated to be
constructed in the 3rd quarter of 2003. All of such improvements are estimated to be completed by the end of
the 4th quarter of 2003. In order to complete its development plan, the Lennar Merchant Builders must
construct the production homes and each Lennar Merchant Builder must complete interior streets and utilities.
As of March 15,2003, Lennar Communities has estimated the costs to develop the 796 home sites to
the stage of finished home sites ready to build homes with the foregoing backbone infrastructure to be
$47,500,000 including estimated facilities financed with proceeds of the 2003 Bonds. Pursuant to Lennar
Communities agreements with KB Home Coastal and PCC III, Lennar Communities is obligated to complete
grading and streets and utilities constructed for portions of the rroject being developed by KB Home Coastal
and PCC III. Each Lennar Merchant Builder, KB Home Coasta and PCC III is responsible for internal slreets,
sewer, water, stonn drainage, sidewalks and landscape improvements for the detached single family housing
home sites being developed by such entity.
As of March IS, 2003, Lennar Communities and the Lennar Merchant Builders have expended in the
aggregate approximately $44,982,000 in land acquisition, development, infrastructure and financing costs
relating to development of the property within the District. Lennar Communities estimates that total
development and infrastructure costs, including in-tract improvements for the Lennar Merchant Builders will
aggregate approximately $73,720,000. Due to pre-existing agreements the property within the District is not
subject to the Transportation Unifonn Mitigation Fee.
Major infrastructure which remains to be constructed includes the following: Royal Crest Place from
Butterfield Stage Road to Crowne Hill Drive.
31
Lennar Communities has entered into an agreement with the Rancho California Water District relating
to the provision of water service by Rancho California Water District to the property within the District. Lennar
Communities entered into an agreement for EMWD to provide wastewater services to the property within the
District.
Development Budget.
It is estimated that as of March 15,2003, Lennar Communities and the Lennar Merchant Builders had
expended approximately $34,410,196 in improvement costs, exclusive of land value, debt service and general
and administrative costs.
The following table sets forth Lennar Communities' budget for the approximately $47,490,392 million
of estimated costs for developing the residential property, as of March 15, 2003, (exclus[ve ofland acquisition
costs). Table 5 is a projection only and no assurance can be given that these results will be achieved. Actual
cash flow will depend on future events such as the rate of land sales and actual costs of infrastructure
development.
Table 5
THE LENNAR MERCHANT BUILDERS PROJECTS
STRATFORD, NOTTINGHAM, ASTORIA, FAIRMONT AND CARLYLE
PRO FORMA RESIDENTIAL DEVELOPMENT COSTS
(Estimated as of March 15, 2003)
Master Total
Tract In Tract In Tract In Tract In Tract In Tract In Tract Infrastructure
23[43 23143-[ lli&:2 mill 23143-10 23143-11 23143-F & In-Tract
Planning
Planning
Printing/Delivery $27,860 $6,075 $8,400 $7,500 $5,325 $7,200 $7.200 $69.660
Civil Engineering 909,700 102,465 166,320 IJ7 ,600 89,8[5 121,440 105,600 [,632,840
Soils Engineering 434,300 29,800 39,100 35,500 26,800 34,300 34,300 634,100
Traffic Engineering 0 0 0 0 0 0 0 0
Utility Consultant 30,000 10,125 14,000 12,500 8,875 12,000 12,000 99.500
Landscape Architect 175,000 8,100 [1,200 10,000 7,100 9,600 9,600 230,600
Special Consultants 68,500 2,500 3,500 3,500 3.500 3,500 3,500 88,600
Fees / Bonds I Pennits 1,215,524 676,032 863,903 796,588 555,152 722,237 770,811 5,600,347
Impact Fees 24.810 1.181.685 1,095.694 [.[45.991 1.036.020 1.400.515 1.401.124 7.385.639
Total Planning $2,985,694 $2,016,782 $2,202,117 52,149,179 51,732,587 52,310,792 $2,344,135 515,741,286
Direct Development
Grading $6,980.003 $48,600 $78,320 $50,000 $42,600 $57,600 $33.600 $7,290.723
MaintSpecial 0 0 0 0 0 0 0 0
Construction
Temporary Erosion 485,940 5,000 5,000 5,000 5,000 5,000 5,000 5]5,940
Control
Sewer System 155,450 137,262 180,050 149.236 121,535 154,785 207,005 1,105,303
Water System 385.050 [ 79,379 2[9,665 191,815 147,970 149,585 225,445 1,498,909
Stonn Drain System 683,095 63,710 78,520 158,135 16,900 7,500 31,570 ],018,430
Street Improvements 2,179,232 460,151 541,108 410,800 412,225 351,853 558,671 4,914,040
Dry Utilities 832,330 405.6[3 487.450 384.881 285.865 412.247 462.129 3,291,5[5
Perimeter I Ret. Walls 763,460 137,635 173.980 143,600 116.360 65.940 200,860 [,621,835
Special Amenities 0 0 0 0 0 0 0 0
Entry Features 0 0 0 0 0 0 0 0
Landscaping 3,958.594 297.465 [26,210 290,400 42,070 90,995 219.835 5.025.569
Parks 2,223,740 0 0 0 0 0 0 2,223,740
Reimbursables 0 -241,311 -287,264 -234,818 -164,643 -247,984 -269.617 -1,465,617
Contingency 2.236,265 112.116 691.424 581.773 331.204 264,977 490.960 4,708.719
Subtotal $20,883,159 $1,605,620 $2,294,463 $2,130,822 $1,357,086 $1,312,498 52,165,458 531,749,106
Total $23.868.853 $3.622.402 $4.496.580 $4.280.001 $3.089.673 $3.623.290 $4.509.593 $47.490.392
[Do the above amounts include land acqnisition costs? If not include something like: Pro forma
residential development costs only. Does not include land acquisition costs,]
Source: Lennar Communities.
32
The discussion and budgets set forth above merely reflect Lennar Communities' present plan for the
development of the property (and include certain costs relating to the property pursuant to the Option
Agreements and Construction Agreements). There can be no assurance that LennarCommunities and the Lennar
Merchant Builders will have the resources, willingness or ability to successfully implement the development plan
as described above.
Environmental Review. Most required development approvals were obtained over the last several years.
See "THE COMMUNITY FACILITIES DISTRICT - EnVIronmental Conditions" above. The project has
satisfied reviews relating to sensitive plant or animal species on the property (among other matters). An
archaeologist was on site during grading and no artifacts were encountered. Lennar Communities is not aware
of any additional permits required to proceed with development of the property other than the final map for the
28 custom estate home sites and the usual permits required from the City and applicable local agencies. No lots
are in the 100 year flood plain.
Plan of Finance. Lennar Communities and the Lennar Merchant Builders are financing development
ofthe property from internal sources (including cash and a revolving line of credit) and profits from sales ofland
to homeowners. As of March 15,2003, approximately $44,982,000 had been expended in connection with
acquisition and development of the project.
The foregoing plans and Lennar Communities' projections are sub1'ect to change. There can be no
assurance that Lennar Communities or Lennar Merchant Builders have the wi lingness or ability to successfully
implement the development plans described above. In the event that cost overruns occur which exceed the funds
described in the sectIOn captioned "Plan of Finance" above, Lennar Communities and the Lennar Merchant
Builders will need to raise additional funds. No assurance can be given that such funds could be raised or would
be raised on a timely basis. Continued development in the District may also be adversely affected by changes
in general economic conditions, fluctuations in the real estate market and other similar factors. See
"BONDOWNERS' RISKS" herein for a discussion of risk factors.
If and to the extent that internal financing and land sales revenues are inadequate to pay the costs to
complete the planned development of the lots within the District, portions of the project may not be developable.
While Lennar Corporation has made such internal financing available in the past, there can be no assurance
whatsoever of its willingness or ability to do so in the future; and it has no legal obligation of any kind to
Bondowners to make any such contributions or to obtain loans. Other than pointing out the willingness of
Lennar Corporation to provide internal financing in the past, Lennar Commumties has not represented in any
way that Lennar Corporation will do so in the future.
Absorption.
US Home has a projected absorption rate of approximately IS units per quarter, commencing the fourth
quarter of 2003 and concluding the second quarter of 2005.
Greystone Homes has a projected absorption rate of approximately 18 units per quarter, commencing
the second quarter of 2003 and concluding the first quarter of 2005 for the Nottingham project, 22 units per
quarter commencing the fourth quarter of2003 and concluding the first quarter of2005 for the Astoria project
and 16 units per quarter commencing the second quarter of 2003 concluding the first quarter of 2005 for tI1e
Fairmont proJect.
Lennar Homes has a projected absorption rate of approximately 18 units per quarter, commencing the
fourth quarter of 2003 and concluding the first quarter of 2005 for the Carlyle project.
The foregoing absorption estimates were provided by the Lennar Merchant Builders. The Market
Absorption Study contains projected absorption at build out of production homes which varies from the
absorption estimated by the Lennar Merchant Builders. See THE COMMUNITY FACILITIES DISTRICT-
Market Absorption Study" and APPENDIX D - "Summary Market Absorption Study."
History of Property Tax Payment; Loan Defaults; Bankruptcy. Lennar Communities has made the
following representations on behalf of itself, Lennar Homes, US Home and Greystone Homes:
. Under the definition of Affiliate (as defined in the Developer Continuing Disclosure Agreement
attached hereto as Appendix G), Lennar Communities has over 100 Affiliates consisting of various entities that
33
are developing or have been involved in the development of numerous different projects in states throughout the
country over the last 10 years. It is likely that any such Affiliates have been delinquent at one time or another
in the payment of ad valorem property taxes, special assessments or special taxes. Lennar Communities does
not have actual knowledge that any current Affiliate is currently delinquent in any material amount in the
payment of ad valorem property taxes, special assessments or special taxes.
. Neither Lennar Communities, Lennar Homes, US Home or Greystone Homes is currently in
material default on any loans, lines of credit or other obligation related to its development in the District or any
of its other projects which default would in any way materially and adversely affect its ability to develop its
property in the District as described in the Official Statement or to pay the Special Taxes for which it is
responsible. No Affiliate has any loans, lines of credit, or other obligation related to the development in the
District.
Lennar Communities, Lennar Homes, US Home or Greystone Homes are solvent and neither
Lennar Communities, Lennar Homes, US Home or Greystone Homes has filed bankruptcy or been declared
bankrupt in the last five years, or has any proceeding pending or to their actual knowledge threatened in which
Lennar Communities, Lennar Homes, US Home or Greystone Homes may be adjudicated as bankrupt, or
discharged from any or all of its debts or obligations. No Affiliate of Lennar Communities, Lennar Homes, US
Home or Greystone Homes has filed bankruptcy or been declared bankrupt in the last five years, or has any
proceedings pending or to the actual knowledge of the officer signing on behalf of Lennar Corporation
threatened which may affect development of the Lennar Entities property in the District as described in the
Official Statement or affect payment of the Special Taxes for which the Lennar Entities are responsible.
. No action, suit, proceedings, inquiry or investigations at law orin equity, before or by any court,
regulatory agency, public board or body, IS pending (with service of process to Lennar Communities, Lennar
Homes, US Home or Greystone Homes having been accomplished) against Lennar Communities, Lennar Homes,
US Home or Greystone Homes or, to the actual knowledge of the officer signing on behalf of Lennar
Communities, threatened, wbich if successful, would materially adversely affect the ability of Lennar
Communities, Lennar Homes, US Home or Greystone Homes to complete the development and sale of the
property proposed for development by such entities within the District or to pay special taxes or ad valorem tax
obhgatiOns when due on such property within the District. To the actual knowledge of the officer signing on
behalfofLennar Communities, no action, suit, proceedings, inquiry or investigations at law or in equity, before
or by any court, regulatory agency, public board or body, is pending with service of process to an Affiliate
having been accomplished against an Affiliate or, to the actual knowledge of the officer signing on behalf of
Lennar Communities, threatened, which if successful, would materially adversely affect the ability of Lennar
Communities, Lennar Homes, US Home or Greystone Homes to complete the development and sale of the
property proposed for development by such entities within the District or to pay special taxes or ad valorem tax
obligatiOns when due on such property within the District.
Riverside County records indicate that taxes due in connection with certain parcels in the name of
Greystone Communities are delinquent. The taxes relate to homes sold prior to November 2002 to homeowners
in a community facilities district formed by the Murrieta Valley Unified School District. Greystone Homes had
expected the taxes to be paid through the escrows relating to the sold homes and the homeowners were liable
for payment of applicable amounts. The amounts involved are not material.
KB Home Coastal
KB Home Coastal Inc. ("KB Home Coastal"), a California corporation has acquired a total of212 home
sites (aggregating approximately 40.39 net acres) within the District.
KB Home Coastal is a wholly-owned subsidiary ofKB Home, a Delaware Corporation ("KBH"). KBH
has domestic operations divisions in California, Arizona, Nevada, New Mexico, Flonda, Colorado and Texas.
It also operates a full-service mortgage company for the convenience of its buyers. Founded in 1957, KBH is
a Fortune 500 company listed on the NYSE under the ticker symbol "KBH." KBH is subject to the
informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in
accordance therewith files reports, proxy statements and other information with the SEC. Such reports, proxy
statements and other information, including its Annual Report on Form I O-K and its most recent quarterly Report
on Form IO-Q, may be inspected and copied at the public reference facilities maintained by the SEC at
prescribed rates at 450 Fifth Street, N.W., Washington, D.C. 20549 and at the SEC's regional offices at
Northwestern Atrium Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661. In addition, the
34
aforementioned material may also be inspected at the offices of the NYSE at 20 Broad Street, New York, New
York 10005. All documents subsequently filed by KBH pursuant to the requirements of the Exchange Act after
the date of this Official Statement will be available for inspection in the same manner as described above.
Copies ofKBH's Annual Report and related financial statements, prepared in accordance with generally
accepted accounting standards, are available from KBH's website at kbhomes.com. This Internet address is
included for reference only and the information on the Internet site is not a part of this Official Statement or
incorporated by reference into this Official Statement. No representation is made in this Official Statement as
to the accuracy or adequacy of the i'!formation contained on the Internet site.
Development Experience. In fiscal year 2002, KBH delivered homes to approximately 25,000 families
in the United States and France and approximately 5,344 homes in California. The San Diego division ofKB
Home Coastal closed approximately 1,200 home sales in fiscal year 2002, and anticipates that it will close
approximately 1,200 home sales in fiscal year 2003. Recent projects under development by KB Home Coastal
in Southern California include the following:
Development
Cardona
Valente
Emerald ridge
Sycamore Trails at Canyon Hills
Camden
Berksire
May Farms
Presidio
Hunter Point
Wanis
Borden Road
River Ranch
Location
Oceanside
Oceanside
Fallbrook
Lake Elsinore
Menifee
Menifee
Perris
Scripps Ranch
Murietta
Oceanside
San Marcos
Oceanside
Number of Homes
156
143
44
128
193
213
82
39
121
299
82
300
Description of KB Home Coastal Project.
KB Home Coastal acquired property containing 212 home sites (approximately 40.39 net acres) in the
District on April II, 2002 from PCC III. 127 home sites are being developed as Knightsbridge and 85 home
sites are being developed as Hampton. As of June _' 2003, there are currently 3 models and [31]
production units under construction in Knightsbridge and 2 models completed and _[ 17] productloll units
under construction in Hampton. The model homes range from approximately 1,700 to 3,400 square feet and
were completed during April 2003. Opening sales prices are currently projected to range from $259,900 to
$306,990 in Knightsbridge and $292,990 to 360,990 in Hampton.
The development which constitutes KB Home Coastal project, together with the estimated lot sizes,
unit sizes and base sales price range, is set forth below.
Minimum Estimated
Lot Size Unit Size Estimated Base
Project Name (Square Feet) (Square Feet) Sales Price Range Total Units
Knightsbridge 5,000 1,597 - 2,492 $259,990 - $306,990 127
Hampton 7,200 2,268 - 3,470 $292,990 - $360,990 85
Status of Permits and Approvals. A final map encompassing the 212 home sites was recorded on
December 31, 200 I. Lennar Communities is obligated to deliver finished home sites to KB Home Coastal.
35
As described above, under" - Lennar Corporation and its Subsidiaries Lennar Communities, Lennar Homes,
Greystone Homes and US Home; LEN One- Status of Permits and Approvals," Lennar Communities has
completed grading and is currently completing construction of all backbone public improvements, partially
finished home sites and in-tract street, sewer, water and dry utility improvements for the detached single
housing home sites within the District, including the 212 home sites owned by KB Home Coastal.
Models were completed during April 2003 and homes sales commenced in April 2003.
Environmental Review. Most required development approvals were obtained over the last several
years. See "THE COMMUNITY FACILITIES DISTRICT - Environmental Conditions" above. The project
has satisfied reviews relating to sensitive plant or animal species on the property (among other matters). An
archaeologist was on site during grading and no artifacts were encountered. KB Home Coastal is not aware
of any additional permits required to proceed with development of the property other than the usual permits
required from the County and applicable local agencies. No lots are in the 100 year flood plain.
Plan of Finance. KB Home Coastal financed the acquisition of its lots through its internal resources
and expects to finance construction of in-tract improvements and housing units through internal resources
and home sales. The completion of the in-tract subdivision improvements for landscaping, irrigation, final
street lift, sidewalks and perimeter walls, and school fees are anticipated to cost approximately $1,750,000.
Such improvements and school fees, the cost of building permits and the costs of home construction
(including funds needed to pay the Special Taxes when due) have been and are expected to continue to be
carried out by internal resources and home sales. Due to pre-existing agreements, the property within the
District is not subject to the Transportation Uniform Mitigation Fee.
Absorption. KB Home Coastal has a projected absorption rate of approximately 24 units per quarter,
commencing the second quarter of 2003 and concluding the third quarter of 2004 for the KnIghtsbridge
project and 16 units per quarter, commencing the second quarter of2003 and concluding the third quarter of
2004 for the Hampton project.
The foregoing absorption estimates were provided by the KB Home Coastal. The Market Absorption
Study contains projected absorption at build out of production homes which varies from the absorption
estimated by the KB Home Coastal. See THE COMMUNITY FACILITIES DISTRICT - Market Absorption
Study" and APPENDIX D - "Summary Market Absorption Study."
History of Property Tax Payment; Loan Defaults; Bankruptcy. KB Home Coastal has made the
following representations:
Except as described below, neither KB Home Coastal nor, to KB Home Coastal's actual
knowledge, any of its current Affiliates (as defined in the Developer Continuing Disclosure Agreement
attached hereto as Appendix G) has ever been delinquent in the payment of any ad valorem property taxes,
special assessments or special taxes in any material amount,
Neither KB Home Coastal nor any of its Affiliates is currently in material default on any
loans, lines of credit or other obligation related to its development in the District or any of its other projects
which default would in any way materially and adversely affect its ability to develop its property in the
District as described in the Official Statement or to pay the Special Taxes for which it is responsible,
KB Home Coastal and its Affiliates are solvent and neither KB Home Coastal nor any of its
current Affiliates has ever filed bankruptcy or been declared bankrupt, or has any proceeding pending or to
KB Home Coastal's actual knowledge threatened in which KB Home Coastal or its AffilIates may be
adjudicated as bankrupt, or discharged from any or all of its debts or obligations, and
. No action, suit, proceedings, inquiry or investigations at law or in equity, before or by any
court, regulatory agency, public board or body, is pending (with service of process to KB Home Coastal or
an Affiliate havmg been accomplished) against KB Home Coastal or any Affiliate or, to KB Home Coastal's
actual knowledge, threatened, which if successful, would materially adversely affect the ability ofKB Home
Coastal to complete the development and sale of the property currently owned within the District or to pay
special taxes or ad valorem tax obligations when due on its property within the District.
36
K B Home , a California corporation, an Affiliate of KB Home Coastal owned
approximately 500 acres ofundeve1oped land in the Rosamond area of southern Kern County, California.
The property was within two assessment districts formed by the Rosamond Community Services District, AD
1990-2 and AD 1991-3, both of which issued assessment bonds. In approximately 1995, the Affiliate
determined that based upon changed market conditions, the value of the property did not support the tax and
assessment burden on the property and the Affiliate discontinued paying the ad valorem property taxes and
the assessments on the property. The Rosamond Community Services District obtamed a foreclosure
judgment against the property and a sheriff's sale was held on July 30, 2002. There were no bidders at the
sheriff's sale. Ken County held a tax sale on March 3, 2003. Four parcels, totaling approximately 480 acres,
were sold at the tax sale to two buyers. KB Home Coastal has been informed, however, that one ofthe buyers
is attempting to rescind the sale for reasons unknown to the KB Home Coastal. As of May 1,2003, the
Affiliate continued to own approximately 28 acres which are in tax default status. [In 1996, KB Home
implemented a new business model to transition from a more speculative business into a more disciplined
organization to reduce the exposure to the risk inherent in building large numbers of homes that sit
unoccupied until a buyer turns up to building homes after it has lined up a buyer with mortgage approval.
There are exceptions to this business model.]
PCC III and pce 100.
PCC III is a Delaware limited liability company based in Temecula, California. Pacific Century
Homes is the managing member of PCC III. PCC III originally acquired all of the property in the District
on January 18,2002, from Crowne Meadows, L.P., a Washington limited partnership. Due to financial
arrangements relating to the property containing 100 home sites comprising the Carlyle project, the property
was acquired and title taken in the name of PCC III - Crowne Hill 100, LLC, a Delaware limited liability
company ("PCC I 00"). Due to financial arrangements relating to property containing 112 home sites
comprising the Fairmont project, the I'ror.erty was acquired and title taken in the name of PCC III - Crowne
Hill 112, LLC, a Delaware limited !lability company ("PCC 112"). On April II, 2002, PCC III sold the
property containing 212 home sites to KB Home Coastal. On July 12, 2002, Pacific Century Homes in
connection with a transaction with Lennar Corporation sold substantially all of its real estate homebuilding
assets, including property containing 344 home sites encompassed by the District and owned by PCC III and
property containing 112 home sites encompassed by the District and owned by PCC 112, but excluding the
property containing the 100 home sites owned in the name of PCC III. Due to the financial arrangements
relating to the 100 home sites comprising the Carlyle project, such property remained under the ownership
ofPCC 100. PCC 100 is ultimately owned by Temecula Valley, LLC, a Delaware limited liability company,
in which Greystone Homes and Double L Holdings, LLC, a California limited liability company, each own
a 50% interest. Double L Holdings, LLC, is an affiliate of Mr. William Lo, one of the principals of Pacific
Century Homes. As described above, under the agreement relating to the Carlyle project, Lennar Homes is
expected to be the merchant builder with respect to the Carlyle project. In connection with the transaction
between Pacific Century Homes and Lennar Corporation, PCC III retained the 28 custom estate home sites.
The managing member of PCC III is Pacific Century Homes. A member of PCC III is Pacific
Century Communities III, LLC, a Delaware limited liability company. Pacific Century Homes is the manager
of Pacific Century Communities III, LLC. Prior to sale of substantially all of its real estate homebuilding
assets in a transaction with Lennar Corporation, the principals of Pacific Century Homes, were involved in
the projects described in "Development Experience" below.
Pacific Century Homes was formed in December 1994 by NeilD. Gascon and William W. Lo to enter
into the medium priced home building marketplace in Southern California. Pacific Century's offices are
located in Temecula, California. Mr. Gascon and Mr. Lo are Pacific Century's sole shareholders. Further
information on Mr. Gascon and Mr. Lo is set forth below. Pacific Century Homes sold substantially all of
its real estate homebuilding assets in a transaction with Lennar Corporation on July 12, 2002 and remains
active in Riverside County with respect to management of an office building and processing of land use
entitlements with respect to a 7.8 acre commercial/retail parcel and a 32 acre commercial/retail parcel. In
addition, Pacific Century Homes has ongoing responsibilities with respect to the following residential
projects: (i) Auberry Place, Via Verde and Pepper A venue referenced in the table described in "Development
Experience" below.
Neil D. Gascon, President, who founded Pacific Century with William W. Lo, is responsible for
directing cOrporate strategy and forward planning, as well as overseeing production desil;n, governmental
relations, enlltlement processing, purchasing, construction, accounting and customer servIce. Neil Gascon
37
is also a principal of Gascon Mar Ltd., a development concern responsible for over $345,000,000 in
residential, commercial, retail and industrial developments, and previously served as president ofPenasuitos
Properties, the U.S. development subsidiary of Genstar corporation. Mr. Gascon is a graduate of San Diego
State University with a B.S. degree in accounting.
William W. Lo, Chairman and Chief Executive Officer, who founded Pacific Century with Neil D.
Gascon, is responsible for managing and overseeing land acquisition, product conceptualization, pricing,
financing, budgeting, marketing, sales, and public relations. Previously, Mr. Lo served as execul1ve vice
president and chief [mancial officer of Woodhaven Developers, Inc., a privately held real estate investment
and development company. Mr. Lo has a B.S. degree from Woodberry University and an M.B.A. degree
from the University of Southern California.
Development Experience. Recent projects under development by Pacific Century Homes and its
affiliates in Southern California prior to or at the time of, the sale of the homebuilding assets in connection
with a transaction with Lennar [Corporation] are listed below. Most projects remaining to be completed are
now under development by subsidiaries of Lennar Corporation.
Number Average Average Completion
Project Location of Units Sqnare Feet Prices Date
RiverWalk Hemet 75 1,850 $119,335 1996
BridleWalk Hemet 75 1,833 128,155 1996
ArborWalk Murrieta 314 2,100 139,000 1997
Mayberry Hemet 222 2,265 134,054 1998
Stonehurst Wildomar 59 2,096 156,937 1998
Windsong Wildomar 62 2,018 152,248 1998
Shenandoah Corona 89 2,786 262,225 1998
Promenade Temecula 68 3,187 247,696 1999
Parkhill Village San Jacinto 58 1,401 112,051 1999
Veranda Murrieta 183 3,118 221,181 1999
Melrose Moreno Valley 106 3,032 176,406 1999
Via del Lago Moreno Valley 166 3,015 195,245 1999
Summerhill Lake Elsinore 149 2,259 177,000 2001
Springfield Hemet 176 2,228 162,500 2001
Springfield II Hemet 158 2,123 172,780 2002
ArborGlen'l) near Murrieta 178 2,310 224,600 2002
The Groves Lorna Linda 38 3,081 293,990 2002
Mayberry Victorville 163 2,124 142,990 2002
Auberry Place'" Ternecula 180 1,532 174,276 2003 (est.)
Chelsea Estates Temecula 137 3,413 301,990 2003 (est.)
Via Verde(2) Moreno Valley 133 1,977 167,212 2003 (est.)
Via del Rey Moreno Valley 146 2,123 169,990 2004 (est.)
Entrada Highlands 137 3,052 279,990 2003 (est.)
Ventana Highlands 188 2,855 235,990 2003 (est.)
GH: Homestead Beaumont 72 2,123 159,990 2003 (est.)
GH: Reserve Beaumont 66 1,780 151,990 2003 (est.)
GH: Farm Beaumont 64 1,977 167,990 2003 (est.)
Pepper A venue(2) Colton III 1,780 172,990 2003 (est.)
Picket Fences Adelanto 148 1,362 99,990 2003 (est.)
(I) Projects not completed at time of the sale of the homebuilding assets in connection with a transaction with Lermar
[Corporation] are being completed by Affiliates of Lennar Corporation.
38
(2) Due to agreements relating to Auberry Place, Via Verde and Pepper Avenue projects, Affiliates of Pacific Century
Homes remain involved in development of these projects.
Description of PCC III Project.
In connection with the acquisition of the Crowne Hill development in 2002 by Pacific Century
Homes, PCC III acquired ownership of the property containing 28 custom estate home sites. As of June I,
2003, these are vacant home sites and are in a partially finished condition. PCC III is evaluating its
alternatives for sale of these home sites to a custom home builder or the sale of individual home sites for
construction of custom homes. Sales prices are currently projected to range from $750,000 to $925,000.
The development which constitutes PCC Ill's project, together with the estimated lot sizes, unit sizes
and base sales price range, is set forth helow.
Project Name
Custom Lots
Lot Size range
(Square Feet)
2.16 -
--
acres
Estimated
Unit Size
(Square Feet)
4,300 - 6,500
Estimated Base
Sales Price Range
$750,000 - $925,000
Total Units
28
Status of Permits and Approvals. A final map encompassing the 28 home sites is expected to be
recorded during June 2003. Lennar Communities is obligated to construct backbone infrastructure. As
described above, under" - Lennar Corporation and its Subsidiaries Lennar Communities, Lennar Homes,
Greystone Homes and US Home; LEN One - Status of Permits and Approvals," Lennar Communities has
completed grading and is currently completing construction of all backbone public improvements. PCC III
or a custom home merchant builder which acquires the property will be responsible for in-tract street, sewer,
water and dry utility improvements for the detached single housing home sites. Because PCC III retained the
28 custom estate home sites subject to the Development Agreement, PCC Ill's remaining costs relate
primarily to custom home construction costs and in-tract improvement costs. Due to pre-existing agreements
the property within the District is not subject to the Transportation Uniform Mitigation Fee.
Development Budget.
It is estimated that as of March 15, 2003, PCC III had expended approximately $642,222 in
improvement costs, exclusive ofland value, debt service and general and adrnimstrative costs.
The following table sets forth PCC Ill's budget as of March 15, 2003 for the approximately
$3,219,287 of estimated total costs for developing the property to a finished condition (exclusive ofland
acquisition costs). Table 6 is a projection only and no assurance can be given that these results will be
achieved. Actual cash flow will depend on future events such as the rate of land sales and actual costs of
infrastructure development.
39
Table 6
PCC III
COMMUNITY FACILITIES DISTRICT NO. 03-1
(CROWNE HILL)
PRO FORMA RESIDENTIAL DEVELOPMENT COSTS!')
(Estimated as of March 15, 2003)
TOTAL IN-TRACT IMPROVEMENTS
DESCRIPTION
CUSTOM LOTS
Planning
Planning
PrintingIDelivery
Civil Engineering
Soils Engineering
Traffic Engineering
Utility Consultant
Landscape Architect
Special Consultants
Fees I Bonds / Permits
Impact Fees
Total Planning
2,100
49,280
16,250
o
5,600
]0.000
3,500
236,524
385.224
$708,478
Direct Development
Grading
Maint Special Construction
Temporary Erosion Control
Sewer System
Water System
Storm Drain System
Street Improvements
Dry Utilities
Perimeter / Ret. Walls
Special Amenities
Entry Features
Landscaping
Parks
Reimbursables
Contingency
Subtotal
21,000
o
15,000
210,000
175,950
282,845
530,279
209,174
214,000
o
o
419,500
o
o
433.061
$2.510.809
Total
$3.219.287
(l)Pro forma residential development costs only. Does not include land acquisition costs.
Source: PCC III.
40
The discussion and budgets set forth above merely reflect PCC Ill's present plan for the development
of the residential portion of the property. There can be no assurance that PCC III will have the resources,
willingness or ability to successfully implement the development plan as described above.
Environmental Review. Most required development approvals were obtained over the last several
years. See "THE COMMUNITY FACILITIES DISTRICT - Environmental Conditions" above. The project
has satisfied reviews relating to sensitive plant or animal species on the property (among other matters). An
archaeologist was on site during grading and no artifacts were encountered. PCC III is not aware of any
additional permits required to proceed with development of the property other than the final map for the 28
custom estate home sites being processed by [Lennar Communities/Homes] and the usual permIts required
from the County and applicable local agencies. No lots are in the 100 year flood plain.
Plan of Finance. PCC III has obtained financing from Scripps Investments in the amount of
$2,200,000 all of which was outstanding on March 1,2003. The property also serves as security to Greystone
Homes for performance work relating to the property. PCC III estimates that as of March 15,2003, the
remaining in-tract costs and fees to get to finished lots, including school fees but excluding building permits
fees was $1,617,107, of which approximately $188,888 of costs will be financed with proceeds of the Bonds.
PCC III is negotiating the acquiSll10n of construction financing with PFF Bank, Cucamonga, California. PCC
III anticipates that this financing will also finance all canying costs for the property (including the payment
of the Special Tax once it is levied and the payment of the Scripps Investment financing). PCC III anticipates
repaying its loans from sale proceeds. The foregoing plans and PCC Ill's projections are subject to change.
There can be no assurance that PCC III has the willingness or ability to successfully implement the
development plans described above. In the event that cost overruns occur which exceed the funds described
above, PCC III will need to raise additional funds. No assurance can be given that such funds could be raised
or would be raised on a timely basis. Continued development in the portion of the District owned by PCC
III may also be adversely affected by changes in general economic conditions, fluctuations in the real estate
market and other similar factors. See "BONDOWNERS' RISKS" herein for a discussion of risk factors.
Absorption. PCC III has a projected absorption rate of approximately 3 units per quarter commencing
the second quarter of 2004 and concluding the second quarter of 2006 for the custom estate home sites.
The foregoing absorption estimates were provided by the PCC III. The Market Absorption Study
contains projected absorption as build out of production homes which varies from the absorption estimated
by PCC III. See "THE COMMUNITY FACILITIES DISTRICT - Market Absorption Study" and
APPENDIX D - "Summary Market Absorption Study."
History of Property Tax Payment; Loan Defaults; Bankruptcy. PCC III has made the following
representations:
PCC III was delinquent in the payment of property taxes due in Fiscal Year 2002-03 with
respect to its property in the District durinf;\ Fiscal Year 2002-03 and the property taxes were paid on June
_,2003. An Affiliate ofPCC III was dehnquent in payment of property taxes due in Fiscal Year 2002-03
with respect to property located within Murrieta Valley Unified School District Community Facilities District
No. 2001-1 aggregatmg approximately $48,572 (excluding penalties). Such special taxes and related
penalties were paid on May 28, 2003. Except for the foregomg, neither PCC III nor to PCC Ill's actual
knowledge of any of its current Affiliates (as defined in the Developer Continuing Disclosure Agreement
attached hereto as Appendix 0) has ever been delinquent in the payment of any ad valorem property taxes,
special assessments or special taxes in any material amount,
. neither PCC III nor any of its Affiliates is currently in material default on any loans, lines
of credit or other obligation related to its development in the District or any of its other projects which default
would in any way materially and adversely affect its ability to develop its property in the District as described
in the OffiCIal Statement or to pay the Special Taxes for which it is responsible,
PCC III and its Affiliates are solvent and neither PCC III nor any of its current Affiliates has
ever filed bankruptcy or been declared bankrupt, or has any proceeding pending or to PCC lIl's actual
knowledge threatened in which PCC III or its Affiliates may be adjudicated as bankrupt, or discharged from
any or all of its debts or obligations, and
41
. no action, suit, proceedings, inquiry or investigations at law or in equity, before or by any
court, regulatory agency, public board or body, is pendin~ (with service of process to PCC III or an Affiliate
having been accomplished) against PCC III or any Affiliate or, to PCC Ill's actual knowledge, threatened,
which if successful, would materially adversely affect the ability ofPCC III to complete the development and
sale of the property currently owned within the District or to pay special taxes or ad valorem tax obligations
when due on its property within the District.
Estimated Special Tax Allocation by Property Ownership
Based on the Appraisal, as of March 15,2003 there were approximately 3 model homes and 31
production homes under construction by KB Home Coastal in the Knightsbridge project and 2 models and
17 production homes under construction by KB Home Coastal in the Hampton project. As of March 15,
2003, LENOne owns 439 home sites, KB Home Coastal owns 212 home sites, PCC 100 owns 100 home sites,
Greystone Homes owns 17 home sites and PCC III owns 28 home sites within the District. Based on
agreements LENOne and PCC 100 have with certain of the Lennar Entities, the Lennar Merchant Builders
in the aggregate would be responsible for approximately 65.55% ofthe estimated Fiscal Year 2003-04 Special
Tax levy. KB Home Coastal and PCC III would be responsible for approximately 34.45% and 0.0%,
respectively, of the estimated Fiscal Year 2003-04 Special Tax levy. The actual allocation to LENOne and
the Lennar Merchant Builders, KB Home Coastal and PCC III will depend on sales by LEN One to the Lennar
Merchant Builders and sales by the Lennar Merchant Builders, KB Home Coastal and PCC III of completed
homes to individual homeowners during the applicable period.
42
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Table 8
Temecula Public Financing Anthority
Community Facilities District No. 03-1 (Crowne HiU)
Projected Fiscal Year 2003~4 Special Tax Levy
By Zone and RMA Property Classification
Zone 1
FY 2003-04 FY 2003-04
Projected Projected
RMA Property Taxable Units or Maximum Assigned
Classification Acres Lots Special Tax Special Tax,l)
Developed -0- -0- $ 0.00 $ 0.00
Approved (2) 119.92 563 665,196.24 596,797.82
Undeveloped (3) 101.60 ~ 563.575.20 0.00
Zone 1 Totals 221.52 591 $1,228,771.44 $596,797.82
Zone 2
FY 2003-04 FY 2003-04
Projected Projected
RMA Property Taxable Units or Maximum Assigned
Classification Acres Lots Special Tax Special Tax(')
Developed 15.62 81 $139,447.45 $124,427.00
Approved 24.77 131 211,015.63 189,319.14
Undeveloped --=l!:.... -0- -0- 0.00
Zone 2 Totals 40.39 212 $350,463.08 $313,746.14
DISTRICT TOTALS 261.91 803 $1,579,234.52 $910,543.96
(I) Preliminary, subject to change. Includes estimated debt service and administrative expenses.
(2) Includes 7 lots designated to be utilized as a retention basin in the future.
(3) Number of lots is projected, as final tract map has not yet recorded.
Direct and Overlapping Debt
Table 9 below sets forth the existing authorized indebtedness payable from taxes and assessments
that may be levied within the District prepared by Albert A. Webb Associates and based on what was levied
for Fiscal Year 2002-03 (the "Debt Report"). The Debt Report is included for general information purposes
only. In certain cases, the percentages of debt calculations are based on assessed values, which will change
significantly as sales occur and assessed values increase to reflect housing values. The District believes the
information is current as of its date, but makes no representation as to its completeness or accuracy. Other
public agencies, such as the City, may issue additional indebtedness at any time, without the consent or
approval of the District or the Authority. See" - Overlapping Assessment and Districts" below.
The Debt Report generally includes long term obligations sold in the public credit markets by public
agencies whose boundaries overlap the boundaries of the District in whole or in part. Such long term
obligations generally are not {'ayable from properly taxes, assessment or special taxes on land in the District.
In many cases long term obhgations issued by a public agency are payable only from the general fund or
other revenues of such public agency. Additional indebtedness could be authorized by the District, the City
or other public agencies at any time.
The District has not undertaken to commission annual appraisals of the market value of property in
the District for purposes of its Annual Reports pursuant to the Continuing Disclosure Agreement, and
44
information regarding property values for purposes of a direct and overlapping debt analysis which may be
contained in such reports will be based on assessed values as determined by the County Assessor. See
Appendix F hereto for the form of the Continuing Disclosure Agreement.
Table 9
Temecula Public Finance Authority
Community Facilities District No. 03-1
Detailed Direct and Overlapping Debt
I. Assessed Value
Fiscal Year 2002-2003 Secured Roll Assessed Valuation
II. Secured Property Tax Roll
Dcscripti~~ 2f~.!ill!
ADl59R
GENERAL PURPOSE
TEMECULA UNIFIED SCHOOL DISTRICT
METROPOLITAN WTR DEBT SV
RCWD R DIY DEBT SERVICE
TEMECULA eSD SVS PARKS
MWD STANDBY EAST
EWMD STANDBY - COMBINED CHARGE
FisClll Year 2002-2003 TOTAL PROPERTY TAX LIABILITY
Total
Parcels
TT,li'l7
701,454
32,416
390,760
29,360
22,288
178,553
179,951
~ AD~lic:~!e
.5 Y.
0.005%
0.070%
0.008%
0.244%
1.302%
0.229%
0.209%
Parcels
In District
-----om;
776
776
776
776
776
776
16
'iff
1%
GO
GO
GO
CSA
WTR
WTR
Tolal.J&yy
----S5,051,521
$],003,642,139
$4,605,793
$4,356,238
$6,479,332
$2,667,744
$2,658,260
$3,994,446
TOTAL PROPERTY TAX AS A PERCENT AGE OF FISCAL YEAR 2002-2003 ASSESSED V ALUA nON
Ill. Land Secured Bond Indebtedness
Outstanding Direct and Parcels
Overlappinl! Bondcd Dcbt m. Issued Outstandinl!: ~Aoolicable !!!.District
~gi}l~AND SECURED BONDED DEBT (1) (2) AD $24,795,000(]) $21.337,000(2) 14.970% 776
Authorized Direct and Parcels
Overlaooine: Bonded Debt m. Authorized Unissued ~Aoolicable !!!.District
~gT,}l i.r~rrbi~t~~~ECURED BONDED DEBT (2) AD $48,782,006(1) 148,782,006(1) 8.780% 776
TOTAL OUTSTANDING AND UNISSUED LAND SECURED BONDED INDEBTEDNESS
IV. General Obligation Bond Indebtedness
Outstanding Direct and Parcels
Overlappine: Bonded Debt m. ~ Outstanding ~Applieablc !!!.Distriet
TEMECULA UNifiED B & I GO $65,000,000 $55,750,000 0.070% 776
RCWD R DIV DEBT SERVICE GO $44,360,000 $10,330,315 0.244% 776
METROPOLITAN WTR DEBT SV GO $850,000,000 $503,075,000 0.000% 776
TOTAL GENERAL OBLIGA T10N BONDED DEBT.
Authorized Direct and Parcels
Overlanninl!BondedDebl 1= Authorized ~ :liAnnlieable !!!~
RCWD R DIY DEBT SERVICE GO $55,000,000 $10,640,000 0.244% 776
TEMECULA UNIFIED B & I GO $65,000,000 $0.00 0.070% 776
METROPOLITAN WTR DEBT SV GO 1850,000,000 $0.00 0.000% 776
TOTAL UNISSUED GENERAL OBLIGATION BONDS(J)
TOTAL OUTSTANDING AND UNISSUED GENERAL OBLIGA nON BONDED INDEBTEDNESS
$5,279,574
~Amount
$4'84,5'5i"
$52,796
$3,223
$350
$]5,829
$34,746
$6,084
$8,343
$605,922
11.48%
Amount
2f Debt
$3,194,115
$3,194,]15
Amount
Aoolicable
$4,283,189
$4,283,189
$7,477,304
Amount
2fDebt
$39,010
$25,238
$2,272
$66,519
Amount
Aoolicab]e
$25,994
SO
SO
$25,994
$92,513
OT AL OF ALL OUTSTANDING AND UNISSUED DIRECT AND OVERLAPPING BONDED DEBT
$7:569:81
'"
OJ
Additional bonded debt or available bond authorization may exist but is not shown because a tax was not levied for the referenced fiscal year.
Proceeds from the 2003 Bonds will payoff the AD 159R assessment lien. 2003 Bond proceeds will finance facilities which could be financed by
AD 159 Supplementa1. The AD 159R lien and the AD 159 Supplemental lien will be released by the County.
45
Source: Albert A. Webb Associates.
Overlapping Assessment and Community Facilities Districts
Additional Debt Payable from Taxes or Assessments. The District has no control over the amount
of additional debt payable from taxes or assessments levied on all or a portion ofthe property within a special
district which may be incurred in the future by other governmental agencies, including, but not limited to,
the County, the City or any other governmental agency having jurIsdiction over all or a portion of the
property within the District. Furthennore, nothing prevents the owners of property within the District from
consenting to the issuance of additional debt by other governmental agencies which would be secured by
taxes or assessments on a parity with the Special Taxes. To the extent such indebtedness is payable from
assessments, other special taxes levied pursuant to the Act or taxes, such assessments, special taxes and taxes
will be secured by hens on the property within a district on a parity with a lien of the Special Taxes.
Accordingly, the debt on the property within the District could increase, without any corresponding
increase in the value of the property therein, and thereby severely reduce the ratio that exists at the time the
2003 Bonds are issued between the value of the property and the debt secured by the Special Taxes and other
taxes and assessments which may be levied on such property. The incurring of such ailditional indebtedness
could also affect the ability and willingness of the property owners withm the District to pay the Special
Taxes when due.
Moreover, in the event of a delinquency in the payment of Special Taxes, no assurance can be ~given
that the proceeds ofany foreclosure sale of the property with delinquent Special Taxes would be sufficient
to pay tlie delinquent Special Taxes. See "BONDOWNERS' RISKS."
Other Overlapping Direct Assessments
Metropolitan Water District Standby. Property within the District is subject to a Metropolitan Water
District Standby ("MWD Standby") assessment. The MWD Standby assessment is fixed unless there is a
vote to increase the assessment. This pay-as-you-go assessment is used for water conservation programs,
emergency programs, water treatment and capItal improvements such as transporting water from Colorado
and Northern California to Southern California. The assessment levied for FIscal Year [2002-03 is $6.94]
per equivalent dwelling unit.
Prior Lien; County of Riverside Assessment District No. 159R; County of Riverside Assessment
District No. 159 Supplemental. Property within the District is subject to a County of Riverside Assessment
District No. 159R lien and the County of Riverside Assessment District No. f59 Supplemental lien. A
portion of the proceeds ofthe 2003 Bonds will be used to prepay the outstanding lien of Assessment District
No. 159R (i.e., the Prior Lien) relating to bonds previously Issued with respect to Assessment District No.
159R and a portion of the proceeds of the 2003 Bonds will be used to finance facilities to which the non-
bonded Assessment District No. 159 Supplemental lien pertains. The County has agreed to release the
Assessment District No. 159R lien and to release any remaining Assessment District No. 159 Supplemental
lien.
Transportation Uniform Mitigation Fee
The County of Riverside and the 14 cities in western Riverside County adopted, or are in the process
of adopting, a new transportation fee for development, which adds approximately $6,650 to every new single-
family house and approximately $4,600 to each future apartment or condominium unit in the County, subject
to credit for a portIOn, if any, of transportation facility fees imposed by the County or applicable cIty which
relates to facilities encompassed within the new transportation fee. New retail, service and industrial
development will also be charged the transportation fee based on the square footage of new development
($8.90 per square foot for retail, $5.08 per square foot for service and $1.65 per square foot for industrial).
the fee was approved by the County in February 2003. The fee was approved by the City on January 28,
2003, effective 61 days thereafter. The fee is bemg implemented by the other cities in the County between
February I, and June 1,2003. Cities may opt out of the fee, but then they will not be able to receive any
money from Measure A, the County's half-cent sales tax initiative. ExtenSIOn of the tenn of Measure A was
approved by the voters at the November 5, 2002 election. Measure A is estimated to cover more than 50%
oIlhe cost of maintaining cities' roads and streets. The half-cent sales tax program is now extended an
additional 30 years and will expire in 2039. The Appraisal is based on comparable land sales which occurred
before implementation of the Transportation Umfonn Mitigation Fee. The effect of the Transportation
Unifonn Mitigation Fee on land values and sales prices cannot be detennined at this time. Due to pre-existing
agreements the property within the District is not subject to the Transportation Unifonn Mitigation Fee.
46
Estimated Assessed Value-to-Lien Ratios
The assessed values, direct and overlapping debt and total tax burden on individual parcels varies
among parcels within the District. The value of inilividual parcels is significant because in the event of a
delinquency in the payment of Special Taxes, the District may foreclose only against delinquent parcels. As
of March 15, 2003, tlie parcels 10 the District have a value-to-lien ratio of approximately 7.3:1.
Market Absorption Study
Empire Economics, LLC, the market absorption consultant (the "Market Absorption Consultant")
has prepared a market analysis of the property in the Community Facilities District in its Market Absorption
Study, updated June 10, 2003 (Original Study: November 2002) (the "Market Absorption Study").
Based upon its analysis of the expected demographic-economic trends, the Market Consultant
estimated the District is expected to accommodate the 796 residential units at build-out by the end of 2006.
The Market Absorption Consultant's estimated absorption rates of the different categories of residential units
are as follows:
*Preliminary. subject to change.
47
]
jj
~
o
'"
I
.
'ii
o
....
~
~
~
~
00
~
N
00
N
a,
'<t
'"
:':
:::
~
o
;;:
"
..
15
....
The Market Absorption Study is subject to a number of assumptions and limiting conditions. See
APPENDIX D - "Summary Market Absorption Study" for a discussion of the assumptions and limit
conditions of the Market Absorption Study.
Appraised Property Value
An appraisal prepared by an MAl appraiser of the land and existing improvements for the
development within the District dated March 19, 2003 (the "Appraisal"), has been prepared by Stephen G.
White, MAl of Fullerton, California (the "Appraiser"l in connection with issuance of the 2003 Bonds. The
purpose ofthe appraisal was to estimate the market va ue of each of the 8 tracts, reflecting the as is condition
of the lots within each tract, as well as the homes which are completed or under constructIOn. The Appraisal
also reflects the proposed District financing together with the overall tax rate to future homeowners of
approximately 1.8 to 1.9%, including the Special Taxes. The subject property includes property proposed
for development of796 single farnily residential lots. The Appraisal is based on certain assumptions. Subject
to these assumptions, the Appraiser estimated that the fee simple market value of the Taxable Property within
the District (subject to the lien of the Special Taxes) as of March 15,2003, was as follows:
Tract Name Builder No. of Lots Market Value
Stratford US Home 114 $12,300,000
Nottingham Greystone Homes 119 12,700,000
Astoria Greystone Homes III 12,850,000
Carlyle Lennar Homes 100 9,490,000
Fairmont Greystone Homes 112 10,770,000
Knightsbridge KB Home Coastal 127 13,750,000
Hampton KB Home Coastal 85 10,890,000
Estate Lots Pacific Century Homes ..ll! 4.750.000
796 $87,500,000
The Appraisal estimated the value of the property in the District as "finished lots," that is, lots that
are fully improved and ready for homes to be built. ThiS reflects that the lots have had fine grading, all in-tract
streets and utilities have been completed and fees have been paid or credited (sewer, water, road, hbra;,Y,park,
school, etc.) up to the stage of pulling building permits (whIch, as described in "Property Ownership' above,
is not yet the condition of the property within the Distnct), less the remaining cost to the merchant builders
to achieve finished lots (based on the status ofthe development process as of March 15,2003). The estimate
of value was based on fee simple ownership, subject only to easements of record and the lien of the Special
Taxes and other special tax and assessment liens.
The Appraiser used a sales comparison approach to estimate the value of the land as if in a finished
condition, being finished single family lots or rough graded superpads. This approach compares recent sales
of similar residential land in the general area to the subject property, considenng pertinent differences from
the sales to the land. Then, a deouction is made for the estimated remaining costs and fees to get the land
from its as is condition to finished lots or superpads. In addition, a deduction is made for all remaining
community infrastructure cost which are the burden of the merchant builders, including grading, utilities,
recreational amenities, etc.
The District makes no representation as to the accuracy or completeness of the Appraisal. See
Appendix C hereto for more information relating to the Appraisal.
The fee simple market value includes the value of extensive grading and infrastructure improvement
as of the date of value and the improvements to be financed by the 2003 Bonds. The market values reported
50
in the Appraisal result in an estimated value-to-lien ratio of 7.3: I,' calculated with respect to the 2003 Bonds
and excluding the overlapping assessment debt relating to the Prior Lien. The value-to-lien ratios of individual
parcels will differ from the foregoing aggregate value. See "BONDOWNERS' RISKS - Burden of Parity
Liens, Taxes and Other Special Assessments on the Taxable Property" and l"BONDOWNERS' RISKS -
AJlpraised Values" herein and APPENDIX C - "Summary Appraisal Report' appended hereto for further
inlOrmation on the Appraisal and for limiting conditions relating to the Appraisal.
BONDOWNERS' RISKS
In addition to the other information contained in this Official Statement, the following risk factors
should be carefully considered in evaluating the investment quality of the 2003 Bonds. The Authority cautions
prospective investors that this discussion does notfjurportto be comprehensive or definitive, the risk factors
are listed in no particular order of importance. an does not purport to be a complete statement of allfactors
which may be considered as risks in evaluating the credit quality of the 2003 Bonds. The occurrence of one
or more of the events discussed herein could aaversely cif.fectthe ability or willingness of property owners in
the District to pay their Special Taxes when due. Any such failure to pay Special Taxes could result in the
inability of the Authority to make full and punctual payments of debt service on the 2003 Bonds. In addition,
the occurrence of one or more of the events discussed herein could adversely affect the value of the property
in the District.
Risks of Real Estate Secured Iuvestments Generally
The Bondowners will be subject to the risks generally incident to an investment secured by real estate,
including, without limitation, (i) adverse changes in local market conditions, such as changes in the market
value of real property in the vicmity of the Distnct, the supply of or demand for competitive properties in such
area, and the market value of residential property and/or sItes in the event of sale or foreclosure; (ii) changes
in real estate tax rate and other operating expenses, governmental rules (including, without limitatIOn, zomng
laws and laws relating to endangered spectes and Iiazardous materials) and fiscal policies; and (iii) natural
disasters (including, without limItation, earthquakes and floods), which may result m uninsured losses.
Concentration of Ownership
As ofthe date hereof, the major landowners (LENOne, Greystone Homes, PCC 100, KB Home Costal
and PCC III) are responsible for 100% percent of the Special Taxes and the Lennar Merchant Builders are
responsible for payment of Special Taxes under agreements with LEN One and PCC 100. If any such entity
fails in its obligations under the applicable agreements or if any such entity is unwilling or unable to pay the
Special Tax wlien due, a potential shortfall in the Bond Fund could occur, which would result in the depletion
ofthe Reserve Fund prior to reimbursement from the resale offoreclosed property or payment of the delinquent
Special Taxes and, consequently, a delay or failure in payments of the pnncipal of or interest on the 2003
Bonds.
No property owner is obligated in any manner to continue to own and/or develop any of the land it
presently owns within the District. The Special Taxes are not a personal obligation of any major landowner,
any merchant builder or of any owner of the parcels, and the District can offer no assurance that any current
owner or any future owner will be financially able to pay such installments or that it will choose to pay even
if financially able to do so.
Failure to Develop Properties
Development of property within the District may be subject to economic cousiderations and unexpected
delays, disruptions and changes which may affect the willingness and ability of the merchant builders or any
property owner to pay the Special Taxes when due.
Land development is also subject to comprehensive federal, State and local regulations. Approval is
re'luired from various agencies in connection with the layout and design of developments, the nature and extent
of Improvements, construction activiry, land use, zoning, school and health requirements, as well as numerous
other matters. As of December 31, 2001, final maps have been recorded for all but the 28 custom estate home
sites. The property within the District is 1?artially developed with public infrastructure improvements and
construction, some of which are substantIally complete; however, additional approvals are necessary to
*Preliminary, subject to change.
51
complete the development. See "Government Approvals" below. It is possible that the approvals necessary
to complete development of the property within the District will not be obtained on a timely basis. Failure to
obtain any such approval could adversely affect land development operations within the District. In addition,
there is a risk that future governmental restrictions on land development within the District will be enacted,
either directly by a governmental entity with jurisdiction or by the voters through the exercise of the initiative
power.
The failure to complete the development or the required infrastructure in the District or substantial
delays in the completion oftbe development or the required infrastructure for the development due to litigation,
the inability to obtain required funding, failure to obtain necessary governmental approval or other causes may
reduce the value ofthe property within the District and increase the length of time ouring which Special Taxes
will be payable from Undeveloped Property, and may affect the willingness and ability of the owners of
property within the District to pay the Special Taxes when due. See "SECURITY FOR THE 2003 BONDS."
Bondowners should assume that any event that significantly impacts the ability to develop land in the
District would cause the property values within the District to decrease substantially and could affect the
willingness and ability of the owners ofland within the District to pay the Special Taxes when due.
Special Taxes Are Not Personal Obligations
The owners of land within the District are not personally liable for the payment of the Special Taxes.
Rather, the Special Tax is an obligation only ofthe land within the District. If the value ofthe land within the
District is not sufficient to fully secure the Special Tax, then the District has no recourse against the owners
under the laws by which the Special Tax has been levied and the 2003 Bonds have been issued.
The 2003 Bonds Are Limited Obligations of the District
The District has no obligation to pay princil'al of and interest on the Bonds in the event Special Tax
collections are delinquent, other than from amounts, If any, on deposit in certain funds and accounts held under
the Fiscal Agent Agreement, or funds derived from the tax sale or foreclosure and sale of parcels on which
levies of the Special Tax are delinquent, nor is the District obligated to advance funds to pay such debt service
on the Bonds.
Appraised Values
The Appraisal summarized in Appendix C hereto estimates the fee simple interest market value of the
Taxable Property within the District. This value is merely the present opinion of the Appraiser, and is qualified
by the Appraiser as stated in the Appraisal. The Authority has not sought the present opinion of any other
appraiser ofthe value ofthe Taxable Property. A different present opinion of sucb value might be rendered by
a different appraiser.
The opinion of value relates to sale by a willing seller to a willing buyer, each having similar
information ana neither being forced by other circumstances to sell nor to buy. Consequently, the opinion is
of limited use in predicting tlie selling price at a foreclosure sale, because the sale is forced and the buyer may
not have the benefit of full information.
In addition, the opinion is a present opinion. It is based upon present facts and circumstances.
Differing facts and circumstances may lead to differing opinions of value. The appraised market value is not
evidence of future value because future facts and circumSlances may differ significantly from the present. See
"THE COMMUNITY FACILITIES DISTRICT - Transportation Uniform Mitigation Fee" for a description
of a new fee relating to all development within western Riverside County which may affect market values.
No assurance can be given that ifany of the Taxable Property in the District should become delinquent
in the payment of Special Taxes, and be foreclosed upon, that such property could be sold for the amount of
estimated market value thereof contained in the Appraisal.
Land Development
A major risk to the Bondowners is that development by the property owners in the District may be
subject to unexpected delays, disruptions and changes which may affect the willingness and ability of the
property owners to pay Special Taxes when due. For example, proposed development within a portion of the
District could be adversely affected by delays in or the inability to obtain final environmental clearances
required in connection With particular parcels of property, unfavorable economic conditions, competing
52
development projects, an inability of the current owners or future owners of the parcels to obtain financing,
fluctuations in the real estate market or interest rates, unexpected increases in development costs, changes In
federal, state or local governmental policies relating to the ownership of real estate, faster than expected
depletion of existing water allocations, the appearance of previously unknown environmental impacts
necessitating preparation of a supplemental environmental impact report, and by other similar factors. There
can be no assurance that land development operations within the District will not be adversely affected by the
factors described above.
In addition, yartially developed land is less valuable than developed land and provides less security
for the 2003 Bonds (and therefore to the Bondowners) should it be necessary for the District to foreclose on
undeveloped property due to the nonpayment of Special Taxes. Moreover, failure to complete future
development on a timely basis could adversely affect the land values of those parcels which have been
completed. Lower land values result in less security for the payment of principal of and interest on the 2003
Bonds and lower proceeds from any foreclosure sale necessitated by delinquencies in the payment of the Special
Taxes.
Furthennore, an inability to develop the land within the District as planned will reduce the expected
diversity of ownership ofland within the District, making the payment of debt service on the 2003 Bonds more
dependent upon timely payment of the Special Taxes levied on the undeveloped property. Because of the
concentration of undeveloped property ownership, the timely payment of the 2003 Bonds depends upon the
willingness and ability of the current owners of undeveloped land and any merchant builders to whom finished
lots are sold to pay the Special Taxes levied on the undeveloped land when due. Furthennore, continued
concentration of ownership increases the potential negative impact of a bankruptcy or other financial difficulty
experienced by the existing landowners. See "Concentration of Ownership" above.
Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property
While the Special Taxes are secured by the Taxable Property, the security only extends to the value
of such Taxable Property that is not subject to priority and parity liens and similar claims.
The table in the section entitled "THE COMMUNITY FACILITIES DISTRICT - Direct and
Overlapping Debt" states the presently outstanding amount of governmental obligations (with stated
exclusIOns), the tax or assessment for which is or may become an obligation of one or more of the parcels of
Taxable Property, and furthennore slates the additional amount of general obligalion bonds the tax for which,
if and when issued, may become an obligation of one or more of the parcels of Taxable Property. The table
does not specifically identify which ofthe governmental obligations are secured by liens on one or more of the
parcels of Taxable Property.
In addition, other governmental obligations may be authorized and undertaken or issued in the future,
the tax, assessment or charge for which may become an obligation of one or more of the parcels of Taxable
Property and may be secured by a lien on a parity with the lien of the Special Tax securing the 2003 Bonds.
In general, the Special Tax and all other taxes, assessments and charges collected on the County tax
roll are on a parity, that is, are of equal priority. Questions of priority become significant when collection of
one or more of the taxes, assessments or charges is sought by some other procedure, such as foreclosure and
sale. In the event of proceedings to foreclose for delinquency of Special Taxes securing the 2003 Bonds, the
Special Tax will be subordinate only to existing prior governmental liens, if any. Otherwise, in the event of
such foreclosure proceedings, the Special Taxes will generally be on a parity with the other taxes, assessments
and charges, and will share the proceeds of such foreclosure proceedmgs on a pro-rata basis. Although the
Special Taxes will generally have priority over non-governmental liens on a parcel of Taxable Property,
regardless of whether the non-governmental liens were in existence at the lime ofthe levy of the Special Tax
or not, this result may not apply in the case of bankruptcy.
While governmental taxes, assessments and charges are a common claim against the value of a parcel
of Taxable Property, other less common claims may be relevant. One of the most serious in tenns of the
potential reductIOn In the value that may be realized to pay the Special Tax is a claim with regard to a hazardous
substance. See "Hazardous Substances" below.
Disclosure to Future Purchasers
The District has recorded a notice of the Special Tax lien in the Office of the Riverside County
Recorder on May 19, 2003, as Document No. 2003-358388. While title companies nonnally refer to such
notices in title reports, there can be no guarantee that such reference will be made or, if made, that a prospective
53
purchaser or lender will consider such Special Tax obligation in the purchase of a parcel of land or a home in
the District or the lending of money thereon. The Act requires the subdivider (or Its agent or representative)
of a subdivision to notit)' a prospective purchaser or long-term lessor of any lot, parcel, or unit subject to a
Mello-Roos special tax ofthe existence and maximum amount of such special tax usmg a statutorily prescribed
form. California Civil Code Section 11 02.6b requires that in the case of transfers other than those covered by
the above requirement, the seller must at least make a good faith effort to notify the prospective purchaser of
the special tax lien in a format prescribed by statute. Failure by an owner of the property to comply with the
above requirements, or failure by a purchaser or lessor to consIder or understand the nature and eXistence of
the Special Tax, could adversely affect the willingness and ability of the purchaser or lessor to pay the Special
Tax when due.
Government Approvals
The current landowners or their predecessors have secured most discretionary approvals, permits and
government entitlements necessary to develop the land within the District. Nevertheless, development within
the District is contingent upon the construction of a number of major public improvements as well as the
necessary local in-tract improvements. The installation of the necessary improvements and infrastructure is
subject to the receipt of construction or building permits from the City and other public agencies. The failure
to obtain any such approval could adversely affect construction within the District. A slow down or stoppage
of the construction process could adversely affect land values. No assurance can be given that permits will be
obtained in a timely fashion, if at all. The failure to do so may result in the prevenlIon, or significant delays
in the development of the property within the District or portions thereof. See "Failure to Develop Properties"
herein.
Local, State and Federal Land Use Regulations
There can be no assurance that land development operations within the District will not be adversely
affected by future government policies, including, out not limited to, governmental policies which directly or
indirectly restrict or control development. During the past several years, citizens of a number of local
communities in California have placed measures on the ballot designed to control the rate of future
development. During the past several years, state and federal regulatory agencies have significantly expanded
their involvement in local land use matters through increased regulatory enforcement of various environmental
laws, including the Endangered Species Act, the Clean Water Act and the Clean Air Act, among others. Such
regulations can substantially impair the rate and amount of development without requiring just compensation
unless the effect of the regulation is to deny all economic use of the affected property. Bondowners should
assume that any event that significantly impacts the ability to construct homes on land in the District could
cause the land values within the District to decrease substantially and could affect the willingness and ability
of the owners ofland to pay the Special Taxes when due or to proceed with development ofland in the District.
See "Failure to Develop PropertIes" herein.
Endangered and Threatened Species
It is illegal to hann or disturb any plants or animals in their habitat that have been listed as endangered
species by the United States Fish & WIldlife Service under the Federal Endangered Species Act or by the
California Fish & Game Commission under the California Endangered Species Act without a permit. Thus,
the presence of an endangered plant or animal could delay development of undeveloped property in the District
or reduce the value of undeveloped property. Failure to develop the undeveloped property in the District as
planned, or substantial delays in the completion of the Jllanned development of the property may increase the
amount of Special Taxes to be paid by the owners of undeveloped property and affect the WIllingness and
ability of the owners of property WIthin the District to pay the Special Taxes when due. See "THE
COMMUNITY FACILITIES DIS'TRICT - Environmental Conditions."
Hazardous Substances
While governmental taxes, assessments, and charges are a common claim against the value of a taxed
parcel, other less common claims may be relevant. One ofthe most serious in terms of the potential reduction
m the value that may be realized to pay the Special Tax is a claim with regard to hazardous substances. In
general, the owners and operators of parcels WIthin the District may be reqUIred by law to remedy conditions
of the parcels related to the 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 al'plicable of these laws, but California laws with
regard to hazardous substances are also stringent and sinnlar. Under many of these laws, the owner (or
operator) is obligated to remedy a hazardous substances condition of a property whether or not the owner (or
54
operator) has anything to do with creating or handling the hazardous substance. The effect, therefore, should
any parcel within the District be affected by a hazardous substance, would be to reduce the marketability and
value of the parcel by the costs of remedymg the condition, because the owner (or operator) is obligated to
remedy the condition. Further, such liabilities may arise not simply from the existence of a hazardous substance
but from the method of handling or disposing of it. All of t1iese possibilities could significantly affect the
financial and legal ability of a property owner to develop the affected parcel or other parcels, as well as the
value of the property that is realizable upon a delinquency and foreclosure.
The assessed value of the property within the District does not take into account the possible reduction
in marketability and value of any of the parcels of Taxable Property by reason of the possible liability of the
owner (or operator) for the remedy of a hazardous substance condition of the parcel. The District has not
independently verified and is not aware that the owner (or operator) of any ofthe parcels of Taxable Property
has such a current liability with respect to any such parcels of Taxable Property, except as expressly noted.
However, it is possible that such liabilities do currently exist and that the District is not aware of them.
Further, it is possible that liabilities may arise in the future with respect to any of the {'arcels of Taxable
Property resulting from the existence, currently, on the parcel of a substance presently claSSified as hazardous
but which has not been released or the release of which is not presently threatened, or may arise in the future
resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but
which may in the future be so classified. Further, such liabilities may arise not simply from the existence of
a hazardous substance but from the method of handling or disposing of it. All of these possibilities could
significantly affect the value of a parcel of Taxable Property that is realizable upon a delinquency. See "THE
COMMUNITY FACILITIES DISTRICT - Environmental Conditions" herein for a descriptIOn ofthe prior use
of the property.
Levy and Collection of the Special Tax
The principal source of payment of principal of and interest on the 2003 Bonds is the proceeds of the
annual levy and collection of the Special Tax against property within the District. The annual levy of the
Special Tax is subject to the maximum tax rates authonzed. The levy cannot be made at a higher rate even if
t1ie failure to do so means that the estimated proceeds of the levy and collection of the SpeCial Tax, together
with other available funds, will not be suffiCient to pay debt service on the 2003 Bonds. Other funds which
might be available include funds derived from the payment of penalties on delinquent S{'ecial Taxes and funds
denved from the tax sale or foreclosure and sale of parcels on which levies of the SpeCial Tax are delinquent.
The levy of the Special Tax will rarely, if ever, result in a uniform relationship between the value of
particular taxed parcels and the amount of the levy of the Sl'ecial Tax against such parcels. Thus, there will
rarely, if ever, be a uniform relationship between the value of such parcels and the proportionate share of debt
service on the 2003 Bonds, and certainly not a direct relationship.
The Special Tax levied in any particular tax year on a parcel of Taxable Property is based upon the
revenue needs and application of the Rate and Method. Application of the Rate and Method will, in turn, be
dependent upon certam development factors with respect to each parcel of Taxable Property by comparison
with similar i1evelopment factors with respect to the other parcels ofTaxable Property witliin the District. Thus,
in addition to annual variations ofthe revenue needs from the Special Tax, the following are some of the factors
which might cause the levy of the Special Tax on any particular parcel of Taxable Property to vary from the
Special Tax that might otherwise be expected:
(I) Reduction in the number of parcels of Taxable Property, for such reasons as acquisition
of parcels of Taxable Property by a government and failure of the government to pay the Special Tax
based upon a claim of exemption or, in the case of the federal government or an agency thereof,
immunity from taxation, thereby resulting in an increased tax burden on the remaimng parcels of
Taxable Property.
(2) Failure of the owners of parcels of Taxable Property to pay the Special Tax and delays
in the coflection of or inability to collect the Special Tax oy tax sale or foreclosure sale of the
delinquent parcels, thereby resulting in an increased tax burden on the remaining parcels.
Except as set forth above under "SECURITY FOR THE 2003 BONDS - Special Taxes" and" - Rate
and Method" herein, the Fiscal Agent Agreement provides that the Special Tax is to be collected in the same
manner as ordinary ad valorem property taxes are collected and, except as provided in the special covenant for
foreclosure described in "SECURITY FOR THE 2003 BONDS - Proceeds of Foreclosure Sales" and in the
Act, is subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is
55
provided for ad valorem property taxes. Pursuant to these procedures, if taxes are unpaid, the property is then
IS subject to sale by the District.
In addition, the Rate and Method limits the increase of Special Taxes levied on parcels of Developed
Property to cure delinquencies of other property owners in the District. See "SECURITY FOR THE 2003
BONDS - Rate and Method" herein.
Insufficiency of the Special Tax
The principal source of payment of principal of and interest on the 2003 Bonds is the proceeds of the
annual levy and collection of the Special Tax against property within the District. The annual levy of the
Special Tax is subject to the maximum tax rates authorized: The levy cannot be made at a higher rate even if
tlie failure to do so means that the estimated proceeds of the levy and collection of the Special Tax, together
with other available funds, will not be suffiCIent to pay debt service on the 2003 Bonds. Other funds which
might be available include funds derived from the payment of penalties on delinquent Special Taxes and funds
denved from the tax sale or foreclosure and sale of parcels on which levies of the SpecIal Tax are delinquent.
The levy of the Special Tax will rarely, if ever, result in a uniform relationship between the value of
particular Taxable Property aud the amount of the levy of the Special Tax against such parcels. Thus, there will
rarely, if ever, be a umform relationship between the value of such parcels and the proportionate share of debt
service on the 2003 Bonds, and certainly not a direct relationship.
The Special Tax levied in any particular tax year on a Taxable Property is based upon the revenue
needs and the application of the Rate and Method, including the effects of the applicable Zone's Minimum
Annual Special Tax Requirement. Application of the Rate and Method will, in turn, be dependent upon certain
development factors WIth respect to each Taxable Property by comparison with similar development factors
with respect to the other Taxable Property within the District. Thus, in addition to annual variations of the
revenue needs from the Special Tax, the following are some of the factors which might cause the levy of the
Special Tax on any particular Taxable Property to vary from the Special Tax that might otherwise be expected:
(I) Reduction in the amount of Taxable Property, for such reasons as acquisition of
Taxable Property by a government and failure of the government to pay the Special Tax based upon
a claim of exemption or, in the case of the federal government or an agency tliereof, immunity trom
taxation, thereby resulting in an increased tax burden on the remaining parcels of Taxable Property;
or
(2) Failure of the owners of Taxable Property to pay the Special Tax and delays in the
collection of or inability to collect the Special Tax by tax sale or foreclosure and sale of the delinquent
parcels, thereby resulting in an increased tax burden on the remaining parcels of Taxable Property in
the applicable Zone.
Except as set forth above under "SECURITY FOR THE 2003 BONDS - Special Taxes" and" - Rate
and Method" herein, the Fiscal Agent Agreement provides that the Special Tax is to be collected in the same
manner as ordinary ad valorem property taxes are collected and, except as provided in the special covenant for
foreclosure described in "SECURITY FOR THE 2003 BONDS - Proceeds of Foreclosure Sales" and in the
Act, is subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is
provided for ad valorem property taxes. Pursuant to these procedures, if taxes are unpaid for a period of five
years or more, the property IS subject to sale by the County.
In the event that sales or foreclosures of property are necessary, there could be a delay in payments to
owners of the 2003 Bonds pending such sales or the prosecution of foreclosure proceedings and receipt by the
Authority of the proceeds of sale ifthe Reserve Fund is depleted. See "SECURITY FOR THE 2003 BONDS-
Proceeds of Foreclosure Sales."
In addition, the Rate and Method limits the increase of Special Taxes levied on parcels of Developed
Property in a Zone to cure delinquencies of other propertr owners in thc same Zone of the District. See
"SECURITY FOR THE 2003 BONDS - Rate and Method' herein.
Exempt Properties
Certain properties are exempt from the Special Tax in accordance with the Rate and Method (see
"SECURITY FOR THE 2003 BONDS - Rate and Method" herein). In addition, the Act provides that
properties or entities of the state, federal or local government are exempt from the Special Tax; provided,
however, that property within the District acquired by a public entity through a negotiated transaction or by gift
56
or devise, which is not otherwise exempt from the Special Tax, will continue to be subject to the Special Tax.
It is possible that property acquired by a public entity following a tax sale or foreclosure based upon failure to
pay taxes could become exempt from the Special Tax. In addition, although the Act provides tliat if property
subject to the Special Tax is acquired by a public entity through eminent aomain proceedings, the obligation
to pay the Special Tax with respect to that property IS to be treated as if it were a special assessment, the
constltutiona1ity and operation of these provisions of the Act have not been tested, meaning that such property
could become exempt from the Special Tax. In the event that additional property is dedicated to the City or
other public entities, this additional property might become exempt from the Special Tax.
The Act further provides that no other properties or entities are exempt from the Special Tax unless
the properties or entities are expressly exempted in a resolution of consideration to levy a new special tax or
to alter the rate or method of apportionment of an existing special tax.
Depletion of Reserve Fund
The Reserve Fund is to be maintained at an amount equal to the Reserve Requirement (see
"SECURITY FOR THE 2003 BONDS - Reserve Fund" herein). Funds in the Reserve Fund may be used to
pay principal of and interest on the 2003 Bonds in the event the proceeds of the levy and collection of the
Special Tax against property within the District is insufficient. If funds in the Reserve Fund for the 2003 Bonds
are depleted, the funds can be replenished from the proceeds of the levy and collection ofthe Special Tax that
are in excess of the amount required to pay all amounts to be paid to the Bondowners pursuant to the Fiscal
Agent Agreement. However, no replemshlnent from the proceeds of a Special Tax levy can occur as long as
the proceeds that are collected from the levy of the Special Tax against property within the District at the
maximum tax rates, together with other available funds, remains insufficient to pay all such amounts. Thus it
is possible that the Reserve Fund will be depleted and not be replenished by the levy of the Special Tax.
Potential Delay and Limitations in Foreclosure Proceedings
The payment ofrroperty owners' taxes and the ability of the District to foreclose the lien of a
delinquent unpaid Specia Tax pursuant to its covenant to pursue judicial foreclosure proceedings, may be
limitea by barikruftcy, insolvency or otherlaws generally affecting creditors' rights or by the laws of the State
relating to judicia foreclosure. See "SECURITY FOR THE 2003 BONDS - Proceeds of Foreclosure Sales"
and "BONDOWNERS' RISKS - Bankruptcy and Foreclosure Delay" herein. In addition, the prosecution of
a foreclosure could be delayed due to many reasons, including crowded local court calendars or lengthy
procedural delays.
The ability of the District to collect interest and penalties specified by State law and to foreclose against
properties having delinquent Special Tax installments may be limited in certain respects with regard to
properties in whICh the Federal Deposit Insurance CorporatIOn (tbe "FDIC") has or obtains an interest. The
FDIC would obtain such an interest by taking over a financial institution which has made a loan which is
secured by property within the District.
The FDIC has adopted a policy statement regarding the payment of state and local real property taxes
(the "Policy Statement") which provides that the FDIC intends to pay valid real property taxes, interest and
penalties, in accordance with state law, on property which at the time of the tax levy is owned by a financial
mstitution in an FDIC receivership, uuless abandonment of the FDIC interest is determined to be appropriate.
However, the Policy Statement is unclear as to whether the FDIC considers special taxes such as the Special
Taxes to be "real property taxes" which it intends to pay. Furthermore, the Policy Statement provides thai, with
respect to parcels on which the FDIC holds a mortgage lien, it will not permit its lien to be forecloseu by a
taxmg authority without its specific consent, and that it will not payor recognize liens for any penalties, fines,
or similar claims imposed for the non-payment of taxes.
The Authority and the District are unable to predict what effect the application ofthe Policy Statement
would have in the event of a delinguency on a parcel within the District in which the FDIC has or obtains an
interest, although prohibiting the hen of the FDIC to be foreclosed at a judicial foreclosure sale would likely
reduce or eliminate the persons willing to purchase a parcel at a foreclosure sale.
In addition, potential investors should be aware that judicial foreclosure proceedings are not summary
remedies and can be subject to significant procedural and other delays caused by crowded court calendars and
other factors beyond control of the Authority or the District. Potential investors should assume that, under
current conditions, it is estimated that ajudicml foreclosure of the lien of Special Taxes will take up to two or
three years from initiation to the lien foreclosure sale. At a Special Tax lien foreclosure sale, each parcel will
be sold for not less than Ihe "minimum bid amount" which is equal to the sum of all delinquent Special Tax
57
installments, penalties and interest thereon, costs of collection (including reasonable attorneys' fees), post-
judgment interest and costs of sale. Each parcel is sold at foreclosure for the amounts secured by the Special
Tax lien on such parcel and multiple parcels may not be aggregated in a single "bulk" foreclosure sale. If any
parcel fails to obtain a "minimum bid," the Authority may, but IS not obligated to, seek surerior court approval
to sell such parcel at an amount less than the minimum bid. Such Superior Court approva requires the consent
of the owners of75% of the aggregate principal amount of the Outstanding Bonds.
Bankruptcy and Foreclosure Delay
The payment of Special Taxes and the abili~ of the District to foreclose the lien of a delinquent
Special Taxes as discussed in the section herein entitled 'SECURITY FOR THE 2003 BONDS" may be limited
by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating
to judicial foreclosure. In addition, the prosecution of a judicial foreclosure may be delayed due to congested
local court calendars or procedural delays.
The various legal opinions to be delivered concurrently with the delivery of the 2003 Bonds (including
Bond Counsel's approving legal opinion) will be gualified, as to the enforceability of the VariOUS legal
instruments, by moratorium, bankruptcy, reorganizatIOn, insolvency or other similar laws affecting the rights
of creditors generally.
Although bankruptcy proceedings would not cause the obligation to pay the Special Tax to become
extinguished, bankruptcy of a property owner or of a partner or other equity owner of a property owner, could
result in a stay of enforcement of the lien for the Special Taxes, a delay in prosecuting Superior Court
foreclosure proceedings or adversely affect the ability or willingness of a property owner to pay the Special
Taxes and could result in the possibility of delinquent Special Taxes not being paid in full. In addition, the
amount of any lien on property securing the payment of delinquent Special Taxes could be reduced ifthe value
of the property were determined by the bankruptcy court to have become less than the amount of the lien, and
the amount ofthe delinquent SpeCIal Taxes in excess of the reduced lien could then be treated as an unsecured
claim by the court. Any such stay of the enforcement of the lien for the Special Tax, or any such delay or non-
payment, would increase the likelihood of a delay or default in payment of the frincipal of and interest on the
2003 Bonds and the possibility of delinquent Special Taxes not being paid in ful . Moreover, amounts received
upon foreclosure sales may not be sufficient to fully discharge delmquent installments. To the extent that a
significant percentage of the property in the District is ownedby any major landowner, any merchant builders
or any other property owner, and such owner is the subject of bankruptcy proceedings, the payment of the
SpeCIal Tax and the ability of the Authority to foreclose the lien of a delinquent unpaid Special Tax could be
extremely curtailed by barikruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws
of the State relating to judicial foreclosure.
On July 30, 1992, the United States Court of Appeals for the Ninth circuit issued its opinion in a
bankruptcy case entitled In re Glasply Marine Industries. In that case, the court held that ad valorem property
taxes levied by Snohomish County m the State of Washington after the date that the property owner filed a
petition for bankruptcy were not entitled to priority over a secured creditor with a prior hen on the property.
The court upheld the priority of unpaid taxes imposed after the filing of the bankruptcy petition as
"administral1ve expenses" ofthe bankruptcy estate, payable after all secured creditors. As a result, the secured
creditor was to foreclose on the property and retain all of the proceeds of the sale except the amount of the pre-
petition taxes.
According to the court's ruling, as administrative expenses, post-petition taxes would have to be paid,
assuming that the debtor has sufficient assets to do so. In certain circumstances, payment of such administrative
expenses may be allowed to be deferred. Once the property is transferred out ofthe bankruptcy estate (through
foreclosure or otherwise) it would at that time become subject to current ad valorem taxes.
The Act provides that the Special Taxes are secured by a continuing lien, which is subject to the same
lien priority in the case of delinquency as ad valorem taxes. No case law exists with respect to how a
bankruptcy court would treat the hen for the Special Taxes levied after the filing of a petition m bankruptcy.
Glasply is controlling precedent for bankruptcy courts in the State. If the Glasply precedent was applied to the
levy of the Special Tax, the amount of Special Tax received from parcels whose owners declare bankruptcy
could be reduced.
It should also be noted that on October 22,1994, Congress enacted 11 U.S. C. Section 362(b/(18),
which added a new exception to the automatic stay for ad va70rem property taxes imposed by a po itical
subdivision after the filing of a bankruptcy petition. Pursuant to this new provision of law, in the event of a
bankruptcy petition filed on or after October 22, 1994, the lien for ad valorem taxes in subsequent fiscal years
58
will attach even if the property is part of the bankruptcy estate. Bondowners should be aware that the potential
effect of II U.S. C. Section 362(b)(18) on the Special Taxes depends upon whether a court were to determine
that the Special Taxes should be treated like oJ valorem taxes for this purpose.
Payments by FDIC and Other Federal Agencies
The ability ofthe Authority to collect interest and penalties specified by state law and to foreclose the
lien of delinquent Special Taxes may be limited in certain respects with regard to properties in which the FDIC,
the Drug Enforcement Agency, the Internal Revenue Service or other similar federal governmental agencies
has or obtains an interest.
Specifically, with respect to the FDIC, on June 4, 1991, the FDIC issued a Statement of Policy
Regarding the Payment of State and Local Property Taxes (the "1991 Policy Statement"). The 1991 Policy
Statement was revised and superseded by a new Policy Statement effective January 9, 1997 (the "Policy
Statement"). The Policy Statement provides that real property owned by the FDIC is subject to state and local
real property taxes only if those taxes are assessed according to the property's value, and that the FDIC is
immune from real property taxes assessed on any basis other than property value. According to the Policy
Statement, the FDIC will pay its property tax oliligations when they liecome due and payable and will pay
claims for delinquent property taxes as promptly as is consistent witli sound business practice and the orderly
administration of the institution's affairs, unless abandonment of the FDIC's interest in the property IS
appropriate. The FDIC will pay claims for interest on delinquent property taxes owed at the rate provided under
state law, to the extent the interest payment obligation is secured by a valid lien. The FDIC will not pay any
amounts in the nature of fines or penalties and will not pay nor recognize liens for such amounts. If any property
taxes (including interest) on FDIC owned property are secured by a valid lien (in effect before the property
became owned by the FDIC), the FDIC win pay tliose claims. The Policy Statement further provides that no
property of the FDIC is subject to levy, attachment, garnishment, foreclosure or sale witliout the FDIC's
consent. In addition, the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by
foreclosure without the FDIC's consent.
The Policy Statement states that the FDIC generally will not pay non ad valorem taxes, including
special assessments, on property in which it has a fee mterest unless the amount of tax is fixed at the time that
tile FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it
purports to secure the payment of any such amounts. Special taxes imposed under the Act and a special tax
formula which determmes the special tax due each year, are specifically identified in the Policy Statement as
being imposed each year and therefore covered by the FDIC's federal immunity. With respect to property in
Califomta owned by the FDIC on January 9,1997 and that was owned by the RTC on December3l, 1995, or
that became the property of the FDIC through foreclosure of a security interest held by the RTC on that date,
the FDIC will continue the RTC's priorpraclIce of paying special taxes imposed pursuant to the Act if the taxes
were imposed prior to the RTC's acqUIsition of an mterest in the property. All other special taxes may be
challenged by the FDIC.
The FDIC has filed claims against the County of Orange with respect to Mello-Roos District special
taxes in the United States Bankruptcy Court and in Federal District Court in which the FDIC has taken a
position similar to the position outlined in the Policy Statement. While all of such claims have not been
resolved, the Bankruptcy Court has issued a tentative ruling in favor of the FDIC on certain of such claims.
The County of Orange has appealed such ruling and the FDIC has cross-appealed. The decision of the United
States Court of Appeals for the 9th Circuit (the "9th Circuit Court") was filed on August 28, 2001. In its
decision, the Court stated that the FDIC, as a federal agency, is exempt from the Mello-Roos Special Tax. The
FDIC has also filed suit (the "post-bankruptcy" suit) regarding special taxes imposed after 1994. However,
such action has been stayed pending resolulIon of the 9th CirCUIt Court appeal by the FDIC regarding the
bankruptcy case. The post-bankruptcy suit has recently been consolidated with the cases filed by the FDIC
against other California counties and is pending in the United States District Court in Los Angeles. The FDIC
has filed a motion to lift the bankruptcy stay.
The Authority is unable to predict what effect the application of the Policy Statement would have in
the event of a delinquency on a parcel within the District in which the FDIC has or obtains an interest, although
prohibiting the lien of the FDIC to be foreclosed at a judicial foreclosure sale would reduce or eliminate the
persons willing to purchase a parcel at a foreclosure sale. Bondowners should assume that the District will be
unable to foreclose on any parcel owned by the FDIC. Such an outcome could cause a draw on the Reserve
Fund and perhaps, ultimately, a default in payment on the 2003 Bonds. Based upon the secured tax roll as of
January 1,2002, the FDIC does not presently own any ofthe property in the DistrICt. The Authority expresses
no view concerning the likelihood that the risks described above will materialize while the 2003 Bonds are
outstanding.
59
Payment of Special Tax Not a Personal Obligation of the Property Owners
An owner of Taxable Property is not personally obligated to pay the Special Tax. Rather, the Special
Tax is an obligation only a!\ainst the parcels of Taxable Property. If the value of the parcels of Taxable
Property is not sufficient, taking into account other obligations also payable thereby to fully secure the Special
Tax, the District has no recourse against the owner.
Factors Affecting Parcel Values and Aggregate Value
Geologic, Topographic and Climatic Conditions. The value of the Taxable Property in the District
in the future can be adversely affected by a variety of additional factors, particularly those which may affect
infrastructure and other publIc improvements and private improvements on the parcels of Taxable Property and
the continued habitabilIty and enjoyment of such private improvements. Such additional factors include,
without limitation, geologic conditIOns such as earthquakes and volcanic eruptions, topographic conditions such
as earth movements, landslides, liquefaction, floods or fires, and climatic condItions such as tornadoes,
droughts, and the possible reduction In water allocation or availability. It can be expected that one or more of
such conditions may occur and may result in damage to improvements of varying seriousness, that the damage
may entail significant repair orreplacement costs and that repair or replacement may never occur either because
of the cost or because repair or replacement will not faCIlitate habitability or other use, or because other
considerations preclude such repair or replacement. Under any of these circwnstances, the value ofthe parcels
of Taxable Property may well depreciate or disappear.
Seismic Conditions. The District, like all California communities, may be subject to unpredictable
seismic activity. The occurrence of seismic activity in the District could result in substantial damage to
properties in the District which, in turn, could substantially reduce the value of such properties and could affect
the ability or willingness of the property owners to pay their Special Taxes. Any major damage to structures
as a result of seismic activity cou1d result in greater reliance on undeveloped property in the payment of Special
Taxes.
Legal Requirements. Other events which may affect the value of a parcel of Taxable Property in the
District include changes in the law or application ofthe law. Such changes may include, without limitation,
local growth control initiatives, local utility connection moratoriums and local application of statewide tax and
governmental spending limitation measures.
No Acceleration Provisions
The 2003 Bonds do not contain a provision allowing for the acceleration of the 2003 Bonds in the
event of a payment default or other default under the terms of the 2003 Bonds or the Fiscal Agent Agreement.
Pursuant to the Fiscal Agent Agreement, a Bondowner is given the right for the equal benefit and protection
of all Bondowners similarly situated to pursue certain remedies (see APPENDIX E - "Summary of Certain
Provisions of the Fiscal Agent Agreement" herein). So long as the 2003 Bonds are in book-entry form, DTC
will be the sole Bondowner and will be entitled to exercise all rights and remedies of Bondowners.
Community Facilities District Formation
California voters, on June 6, ] 978, approved an amendment ("Article XJlIA") to the California
Constitution. Section 4 of Article XIIIA, reqUires a vote of two-thirds of the qualified electorate to impose
"special taxes," or any additional ad valorem, sales or transaction taxes on real property. At an election held
pursuant to the Act, more than two-thirds of the qualified electors within the District, consisting of the
landowners within the boundaries of the District, authorized the District to incur bonded indebtedness to finance
the development ofthe property within the District and approved the Rate and Method of Apportionment. The
Supreme Court ofthe State has not yet decided whether landowner elections (as opposed to resident elections)
satIsfy requirements of Section 4 of Article XIIIA, nor has the Supreme Court decided whether the special taxes
of a Distnct constitute a "special tax" for purposes of Article XIIIA.
Section 5334] of the Act requires that any action or proceeding to attack, review, set aside, void or
annul the levy of a special tax or an increase in a special tax pursuant to the Act shall be commenced within 30
days after the special tax is approved by the voters. No such action has been filed with respect to the Special
Tax.
60
Billing of Special Taxes
A special tax formula can result in a substantially heavier property tax burden being imposed upon
properties within a District than elsewhere in a city or county, and thiS in turn can lead to prob1ems in the
collection of the special tax. In some Districts the taxpayers have refused to pay the special tax and have
commenced litigatIOn challenging the special tax, the District and the bonds issued by the District.
Under provisions of the Act, the Special Taxes are billed to the properties within the District which
were entered on the Assessment Roll of the County Assessor by January I of the previous fiscal year on the
regular property tax bills sent to owners of such properties. Such Special Tax installments are due and payable,
ano bear the same penalties and interest fornon-payment, as do regular property tax installments. These Special
Tax installment payments cannot be made separately from property tax payments. Therefore, the unwillingness
or inability of a property owner to pay regular property tax bills as evidenced by prope!1Y tax delinquencies may
also indicate an unwillingness or mability to make regular property tax payments and mstallment payments of
Special Taxes in the future. See "SECURITY FOR THE 2003 BONDS - Proceeds of Foreclosure Sales," for
a discussion of the provisions which apply, and procedures which the District is obligated to follow, in the event
of delinquency in the payment of installments of Special Taxes.
Collection of Special Tax
In order to pay debt service on the 2003 Bonds, it is necessary that the Special Tax levied against land
within the District be paid in a timely manner. The District has covenanted in the Fiscal Agent Agreement
under certain conditions to institute foreclosure proceedings against property with delinquent Special Tax in
order to obtain funds to pay debt service on the 2003 Bonds. If foreclosure proceedings were instituted, any
mortgage or deed of trust holder could, but would not be required to, advance the amount of the delinquent
SpeclalTax to protect its security interest. In the event such superior court foreclosure is necessary, there could
be a delay in principal and interest payments to the Bondowners pending prosecution of the foreclosure
proceedings ano receipt of the proceeds of the foreclosure sale, ifany. No assurances can be given that the real
property subject to foreclosure and sale at ajudicial foreclosure sale will be sold or, if sold, that the proceeds
of such sale will be sufficient to pay any delinquent Special Tax installment. Although the Act authorizes the
Authority as the Governing Board of the District to cause such an action to be commenced and diligently
pursued to completion, the Act does not specify the obligations of the Governing Board with regard to
purchasing or otherwise acquiring any lot or parcel of property sold at the foreclosure sale if there is no other
purchaser at such sale. See "SECURITY FOR THE 2003 BONDS - Proceeds of Foreclosure Sales."
Right to Vote on Taxes Act
An initiative measure commonly referred to as the "Right to Vote on Taxes Act" (the "Initiative") was
approved by the voters of the State at the November 5,1996 general election. The Initiative added Article
XIIIC ("Article XIIIC") and Article XIIID to the California Constitution. According to the "Title and
Summary" of the Initiative prepared by the California Attorney General, the Initiative limits "the authority of
local governments to impose taxes and property-related assessments, fees and charges." The provisions of the
Initiallve have not yet been interpreted by the courts, although a number oflawsuits have been filed requesting
the courts to interpret various aspects of the Initiative.
Among other things, Section 3 of Article XIII states that" . . . the initiative power shall not be
prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge."
The Act provides for a procedure, which includes nollce hearing, protest and voting requirements to alter the
rate and method of apportionment of an existing special tax. However, the Act prohibits a legislative body from
adopting any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged
to repay any debt incurred pursuant to the Act unless such legislative body determines that the reduction or
tenmnation of the special tax would not interfere with the timely retirement of that debt. On July I, 1997, a
bill signed into law by the Governor of the State enacting Government Code Section 5854, which states that:
"Section 3 of Article XIIIC of the California Constitution, as adopted at the
November 5, 1996, general election, shall not be construed to mean that any
owner or beneficial owner of a municipal security, purchased before or after
that date, assumes the risk of, or in any way consents to, any action by
initiative measure that constitutes an impatrment of contractual rights
protected by Section 10 of Article I of the United States Constitution."
61
Accordingly, although the matter is not free from doubt, it is likely that the Initiative has not conferred
on the voters the power to repeal or reduce the Special Taxes if such reduction would interfere with the timely
retirement of the 2003 Bonds.
It may be possible, however, for voters or the District to reduce the Special Taxes in a manner which
does not interfere with the timely repayment of the 2003 Bonds but which does reduce the maximum amount
of Special Taxes that may be leVied m any year below the existing levels. Therefore, no assurance can be given
willi respect to the levy of Special Taxes for Administrative Expenses. Furthermore, no assurance can be given
with respect to the future levy ofthe Special Taxes in amounts greater than the amount necessary for the timely
retirement of the 2003 Bonds.
Like its antecedents, Proposition 218 is likely to undergo both judicial and legislative scrutiny before
its impact on the District and its obligations can be determined. Certain provisions of Proposition 218 may be
exammed by the courts for their constitutionality under both State and federal constitutional law. The District
is not able to predict the outcome of any such examination.
The foregoing discussion of Proposition 218 should not be considered an exhaustive or authoritative
treatment of the [ssues. The District does not expect to be in a position to control the consideration or
disposition ofthese issues and cannot predict the timmg or outcome of any judicial or legislative activity in this
regard. Interim rulings, final decisions, legislative proposals and legislative enactments may all affect the
impact of Proposition 218 on the 2003 Bonds as well as the market for the 2003 Bonds. Legislative and court
calendar delays and other factors may prolong any uncertainty regarding the effects of Proposition 218.
Ballot Initiatives and Legistative Measures
The Initiative was adopted pursuant to a measure qualified for the ballot pursuant to California's
constitutional initiative process and the State Legislature has m the past enacted legislation which has altered
the spending limitations or establishedrninimum funding provisions for particular activities. From time to time,
other initialive measures could be adopted by California voters or legislation enacted by the State Legislature.
The adoption of any such initiative or enactment oflegislation might place limitations on the ability ofihe State,
the County, the City, the District or local districts to mcrease revenues or to increase approprialions or on the
ability of a property owner to complete the development of the property.
Limited Secondary Market
There can be no guarantee that there will be a secondary market for the 2003 Bonds or, if a secondary
markel exists, Ihat such 2003 Bonds can be sold for any particular price. Although the Authority, the District,
Lennar Communities and KB Home Coastal have committed to provide certain statutorily-reqUIred financial
and operating information, there can be no assurance that such mformation will be available to Bondowners
on a tunely basis. The failure to provide the annual financial and operatin,g information does not give rise to
monetary damages but merely an action for specific performance. OccasIOnally, because of general market
conditions, lack of current information 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. Such pnces could be substantially different from the original purcIiase pnce.
Loss of Tax Exemption
As discussed under the caption "LEGAL MATTERS - Tax Exemption," the interest on the 2003 Bonds
could become includable in gross income for federal income tax purposes retroactive to the date of issuance
ofthe 2003 Bonds as a result of acts or omissions ofthe Authority in VIOlation of certain provisions ofthe Code
and the covenants of the Fiscal Agent Agreement. In order to maintain the exclusion from gross income for
federal income tax purposes of the mterest on the 2003 Bonds, the Authority has covenanted in the Fiscal Agent
Agreement not to take any action, or fail to take any action, if such action or failure to take such action would
adversely affect the exclusion from gross income of interest on the 2003 Bonds under the Internal Revenue
Code of 1986, as amended. Should such an event of taxability occur, the 2003 Bonds are not subject to early
redemption and will remain outstanding to maturity or unlil redeemed under the optional redemption or
mandatory sinking fund redemption provisions of the Fiscal Agent Agreement.
62
Limitations on Remedies
Remedies available to the Bondowners may be limited by a variety of factors and may be inadequate
to assure the timely payment of principal of and interest on the 2003 Bonds or to preserve the tax-exem.pt status
of the 2003 Bonds. See "Payments by FDIC and other Federal Agencies," "No Acceleration ProvislOn" and
"Billing of Special Taxes" herein.
LEGAL MATTERS
Legal Opinion
The legal opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, approving the
validity of the 2003 Bonds will be made available to purchasers at the time of original delivery and the form
of such opinion is attached hereto as Appendix H. McFarlin & Anderson LLP, Lake Forest, California is
serving as Disclosure Counsel. Quint &. Thimmig LLP will also pass upon certain legal matters for the
Authority and the District as Bond Counsel.
Tax Exemption
In the o'pinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however
to the qualificatlOns set forth below, under existing law, the interest on the 2003 Bonds is excluded from gross
income for federal income tax purposes and such interest is not an item of tax preference for purposes of the
federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that,
for purposes of computing the alternative minimum tax imposed on corporations (as defined for federal income
tax purposes), such interest is taken into account in determining certam income and earnings.
The opinions set forth in the preceding l'aragraph are subject to the condition that the Authority comply
with all requirements of the InternafRevenue Code of 1986, as amended (the "Code") that must be satisfied
subsequent to the issuance of the 2003 Bonds in order that such interest be, or continue to be, excluded from
gross mcome for federal income tax purposes. The Authority has covenanted to comply with each such
requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the
2003 Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the 2003
Bonds.
In the further opinion of Bond Counsel, interest on the 2003 Bonds is exempt from California personal
income taxes.
Bondowners should also be aware that the ownership or disposition of, or the accrual or receipt of
interest on, the 2003 Bonds may have federal or state tax consequences other than as described above. Bond
Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the 2003
Bonds other than as expressly described above.
The form of Bond Counsel's opinion is set forth in Appendix H.
No Litigation
At the time of delivery of the 2003 Bonds, the Authority and the District will certify that there is no
action, suit, proceeding, inqUIry or investigation, at law or in equity, before or by any court or regulatory
agency, pubhc board or body 'pending with respect to which they have been served with process or threatened
against the Authority or the DIstrict affecting tlieir existence, or the titles oftheir respective officers, or seeking
to restrain or to enjoin the issuance, sale or delivery ofthe 2003 Bonds, the ap'plicatlOn of the proceeds thereof
in accordance with the Fiscal Agent Agreement, or the collection or applicallon of the Special Tax to pay the
principal of and interest on the 2003 Bonds, or in any way contesting or affecting the validity or enforceability
of the 2003 Bonds, or the Fiscal Agent Agreement or any action of the Authority or the District contemplated
by either of said docwnents, or in any way contesting the completeness or accuracy of this Official Statement
or any amendment or sUl'plement hereto, or contesting the powers of the Authority or the District or their
authority with respect to tlie 2003 Bonds or any action of the Authority or the District contemplated by either
of said documents, nor, to the knowledge of the Authority, is there any basis therefor.
63
No General Obligation of the Authority or the District
The 2003 Bonds are not general obligations of the Authority or the District, but are limited obligations
of the Authority for the District payable solely from proceeds of the Special Tax and proceeds of the 2003
Bonds, including amounts in the Reserve Fund, the Special Tax Fund and the Bond Fund. Any tax levied for
the payment of the 2003 Bonds shall be limited to the Special Taxes to be collected within the jurisdiction of
the District.
NO RATINGS
The 2003 Bonds have not been rated by any securities rating agency.
UNDERWRITING
The 2003 Bonds are being purchased by Stone & Youngberg LLC at a purchase price of$
(~hich represents the aggregate principal amount of the 2003 Bonds ($ ), less an underwnter's
discount of $ J.
The purchase agreement relating to the 2003 Bonds provides that the Underwriter will purchase all of
the 2003 Bonds, if any are purchased, the obligation to make such purchase being subject to certain terms and
conditions set forth in such purchase agreement.
The Underwriter may offer and sell 2003 Bonds to certain dealers and others at prices lower than the
offering price stated on the cover page hereof. The offering prices may be changed from time to time by the
Underwnter.
PROFESSIONAL FEES
Fees payable to certain professionals, in connection with the 2003 Bonds, including the Underwriter,
Quint & Thimrmg LLP, as Bond Counsel, McFarlin & Anderson LLP, as Disclosure Counsel, and U.S. Bank
National Association, as the Fiscal Agent, are contingent upon the issuance of the 2003 Bonds. The fees of
Albert W. Webb Associates, as SpeCial Tax Consultant, and Fieldman, Rolapp & Associates, as Financial
Advisor to the Authority, are in part contingent upon the issuance of the 2003 Bonds.
MISCELLANEOUS
References are made herein to certain documents and reports which are brief summaries thereof which
summaries do not purport to be complete or definitive and reference is made to such documents and reports for
full and complete statement of the contents thereof.
Any statements in this Official Statement involving matters of opinion, whether or not expressly so
stated, are intended as such and not as representatives offact. This OffiCIal Statement is not to be construed
as a contract or agreement between the District or the Authority and the purchasers or owners of any of the 2003
Bonds.
64
The execution and delivery of the Official Statement by the District has been duly authorized by the
Authority on behalf of the District.
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1
(CROWNE HILL)
By:
Shawn Nelson, ExecutIve Duector,
Temecula Public Financing Authority, on behalf of
the District
65
APPENDIX A
GENERAL INFORMATION ABOUT THE CITY OF TEMECULA
The following information is provided for background purposes only. The City ofTemecula has no
liability whatsoever with respect to the 2003 Bonds or the Fiscal Agent Agreement.
General Information
Following a vote by the residents on November 7, 1989, the City incorporated under the general laws
of the State of California on December I, 1989. The City has a Council-Manager form of government, and is
represented by the five members of the City Council who are elected at-large to serve a four-year term. The
Mayor is selected annually by the members of the City Council.
The Temecula Community Services District (TCSD) was also established in 1989. The TCSD is
responsible for providing parks and recreation services to the citizens of Temecula, as well as street lighting
and slope maintenance in certain areas of the district.
Other governmental entities, such as the State of California, the County and various school, water and
other districts, also provide various levels of service within the City ofTemecula. However, the Temecula City
Council does not have a continuing oversight responsibility over these other governmental entities.
Located on Interstate 15, the City of Temecula is the 9th largest city in the Inland Empire and the 4th
largest in Riverside County (as of January, 2002), encompassing 27.1 square miles. The City of Temecula is
85 miles southeast of Los Angeles, 55 miles north of San Diego, 6 I miles southeast of Orange County, and 20
miles inland from the cities of San Juan Capistrano and Oceanside. The City's approximately 73,000 residents
are offered a broad range of housing options from apartments to luxury custom homes, with the median housing
price at $253,000.
Population
From 1990 - 2002, the City's population grew from 27,099 to 72,715, a gain of 45,616 or 168.3%.
In this same period, Riverside County added 473,928, a gain of 40.5%.
CITY OF TEMECULA AND COUNTY OF RIVERSIDE POPULATION
FROM 1990 TO 2002
Temecula Riverside County
Year Population % Change Population % Change
1990 27,099 1,170,413
1991 27,264 0.6% 1,223,227 4.5%
1992 31,005 13.7 1,268,844 3.7
1993 33,226 7.2 1,304,447 2.8
1994 35,771 7.7 1,331,988 2.1
1995 39,284 9.8 1,355,571 1.8
1996 41,850 6.5 1,381,781 1.9
1997 43,760 4.6 1,400,384 1.3
1998 46,564 6.4 1,441,237 2.9
1999 48,828 4.9 1,473,307 2.2
2000 53,791 10.2 1,522,855 3.4
2001- 61,531 24.6 1,583,591 4.0
2002 72,715 8.5 1,644,341 3.8
*Increase includes Vail Ranch annexation.
Source: California Department of Finance.
A-I
Construction Activity
The following table shows a five year history of construction activity in the City.
CITY OF TEMECULA
BUILDING PERMITS AND VALVA TIONS
1998 - 2002
1998 1999 2000 2001 2002
Valuation:
Residential $128,194,701 $180,139,368 $156,787,850 $127,823,375 $100,516,115
Non.residential 87.530.400 77.471.298 58.320.736 39.602.913 43.487.229
Total $215.725.101 $257.610.666 $215.108.586 $167 .426.288 $144.003.344
Residential Units:
Single family 714 1,276 1,142 944 650
Multiple family 724 198 244 Q Q
Total 1.438 1.474 1.386 944 650
:iource: ConstructIOn industry Research Board.
The following table shows historical commercial and residential construction and property values.
CITY OF TEMECULA
COMMERCIAL AND RESIDENTIAL CONSTRUCTION AND PROPERTY VALVES
1992 - 2002
Commercial Construction(1) Residential Construction") Property Values")
Number Number
Fiscal Year of Units Value ofUuits Value Commercial Residential
1992 158 $ 902 337 $ 10,605 $1,078,926 $1,542,280
1993 150 6,316 802 50,347 1,473,713 1,454,943
1994 130 10,639 1,186 113,002 1,526.353 1,489,077
1995 162 29,221 968 85,410 1,466,641 1,539,257
1996 136 23,572 987 93,674 1,478,230 1,677,720
1997 202 32,863 857 85,257 1,347,000 1,856,203
1998 203 66,226 835 105,527 1,321,044 1,958,706
1999 337 159,286 1,384 180,840 1,378,364 2,067,549
2000 437 52,497 1,179 148,660 1,524,091 2,303,303
2001 265 39,511 1,606 169,687 1,935,537 2,627,716
2002
Values in thousands of dollars.
:iource: (~ Lily OJ 1 emecula, Building and Safe!re Department.
( ~ County Land Use Statistical Recap eport.
A-2
Economic Condition
T emecula' s economic base is anchored by a number of firms specializing in biomedical technology and
supplies, high technology controllers and semI-conductors, among others. The City's retail base IS also
experiencing growth and is home to several auto dealers including Honda, Toyota and Nissan. The following
taoles set fortn major manufacturing and non-manufacturing employers:
CITY OF TEMECULA
MAJOR MANUFACTURING EMPLOYERS
(As of December, 2002)
Approximate
No. of Employees
2,600
530
425
350
300
260
220
218
215
183
113
113
CITY OF TEMECULA
MAJOR NON-MANUFACTURING EMPLOYERS
(As of December, 2002)
Approximate
No. of Employees
2,1ll
550
404
300
244
241
220
200
200
200
195
194
Employer
Guidant
International Rectifier/Hexfet
Hudson Respiratory Care Inc.
Channell Commercial Corp.
Milgard Manufacturing
Chemicon International
The Scotts Company / Temecula
Opto 22
Bianchi International
Plant Equipment
Maxxim Medical
Tension Envelope
Source: City Finance Department.
Employer
T,mecula Valle.Y Unified School
DIstrict (TVUSD)
Professional Hospital Supply
Costco Wholesale
Albertsons
City of Temecula
Norm Reeves Auto Group
T emecula Creek Inn
JC Penneys
Tru Green Lawncare
Sears
Lowe's
Target
Source: City Finance Department.
Sales Tax Assessed Values
Type of Business
Medical equipment
Power semi-conductors
Medical equipment
Cable enclosures
Custom windows
Medical products
Manufacturing
Electric/automation controls
Leather goods
Telephone equipment
Specialty medical products
Envelope manufacturer
Type of Business
Public school system
Medical equipment/supplies
Wholesale warehouse
Supermarket
Local Government
Auto dealer
Hospitality
Retail
Landscape maintenance
Retail
Retail
Retail
Industrial and business parks offering clean industries and convenient office space provide growing
employment opportunities. The retail community is expanding rapidly with excellent shopping venues
including the regional Promenade Mall, a unique Historic Old Town area, and neighborhood strip centers. A
wide selection of restaurants allows diners to choose between nationally recognized chains or intimate dining
bistros.
A-3
CITY OF TEMECULA
SALES TAX HISTORY
Year
Amount
1989-90
1997-98
1998-99
1999-00
2000-0 I
2001-02 (est.)
$632,153
$9,186,547
$10,652,400
$14,009,322
$16,321,929
$17,670,000
Source: City of Temecula.
CITY OF TEMECULA
PRINCIPAL SECURED PROPERTY OWNERS
FOR THE YEAR ENDED JUNE 30, 2002
2002 Assessed Percent of
Valuation Total Assessed
Taxpayer Type of Business (in thousands) (Valuation)
International Rectifier Corporation Manufacturing $140,136 2.84%
Advanced Cardiovascular System Inc. Manufacturing 132,236 2.68%
Temecula Towne Center Associates Real Estate Development 74,505 1.51%
Kimco Palm Plaza Limited Partnership Real Estate Development 39,382 0.80%
GMS Realty Real Estate Development 38,788 0.79%
Hudson Respiratory Care, Inc. Manufacturing 35,796 0.73%
Portofino Development Real Estate Development 28,500 0.58%
Starwood Wasserman Temecula Property Management 24,556 0.50%
Knickerbocker Properties Inc. XX Real Estate Development 23,833 0.48%
Casteo Wholesale Corporation Discount Department Store 22.606 0.46%
$560.338 11.37%
Source: Riverside County Assessor's Office.
A-4
CITY OF TEMECULA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
FOR THE FISCAL YEARS ENDED JUNE 30,1997,1998,1999,2000,2001 AND 2002
(Values in Thousands)
Total Exemptions Net Total
Fiscal Year Secured and Veteran Net Assessed Exemptions Assessed Estimated
Taxes Unsecured Church, etc. Value Homeowners Valne Actual Value
t997 $3,203,187 $(22,276) $3,t80,91t $(53,023) $3,127,888 $3,127,888
t998 $3,279,750 $(24,100) $3,255,65 t $(56,665) $3,198,986 $3,t98,986
1999 $3,445,913 $(24,216) $3,421,696 $(60,t 19) $3,36 t ,578 $3,361,578
2000 $3,827,394 $(25,597) $3,801,797 $(61,464) $3,740,333 $3,740,333
2001 $4,563,253 $(29,666) $4,533,587 $(64,372) $4,469,215 $4,469,215
2002 $5,202,010 $(33,360) $5. t 67.650 $(68,938) $5,098,712 $5,098,712
Source: Riverside County Assessor's Office.
General Information
Industrial Real Estate. The City is part ofthe Inland Empire's industrial real estate market. In 1999,
the inland region's 26.1 million square feet of gross space absorption set a record. Lee & Associates found that
in August, 2002, the City had 9.0 million square feet of industrial space or 3.0% ofthe inland area's inventory.
Temecula's industrial vacancy rate was 12.0% representing 1.1 million square feet of space. Among local
cities, this ranked ninth just below Mira Lorna (1.2 million square feet) and above San Bernardino (1.06
million). [Nearby, Corona had 2,469,569 square feet available; Moreno Valley-Perris had just 7,090 square
feet.]
[Within the Inland Empire, the City is making the transition from a small to a mid-sized market. If
multi-tenant sites are included in the City's inventory, its potential industrial space rises to 9,904,065 square
feet. This figure has increased 58.4% from the 6.25 million square feet that existed in 1990.]
Agriculture. The climate and soil in the City are particularly favorable for growing avocado, grape,
and citrus crops.
There are currently several agricultural management firms in the Temecula area which manage
agricultural production of thousands of acres of land owned by individual investors, partnerships and
corporations. The agricultural managers apply economies of scale, by combining many small and medium sized
parcels ofland as if these parcels were one large ranch.
In addition, a substantial wine industry has been developed in the City and the surrounding area. As
of January, 2003, there were sixteen (16) wineries which produce wine with locally grown grapes.
Climate. Temecula Valley enjoys a mild Mediterranean climate with year-round temperatures
averaging in the mid 70's. The weather is comparable to the Napa Valley, as evidenced by a thriving wine
industry, with warm, dry days and cool evenings. Summer-time temperatures, which can average in the mid
80's or the mid 90's during the day, are often cooled by afternoon ocean breezes blowing into the valley
through gaps in the Santa Ana foothills to the west. Although separated from the Pacific by the Santa Rosa
range of mountains, the Rainbow Gap funnels the mild beach climate into the valley. Mild wintertime
A-5
temperatures average in the mid 60's. Yearly average rainfall in Temecula is approximately 14 inches, as
compiled by the Rancho California Water district.
The quality of air in the Temecula Valley is consistently better than that of surrounding communities.
Ocean breezes flow through the Rainbow Gap almost every day, sweeping away smog. In the summer, Pacific
winds yield temperatures up to 10 degrees lower than in towns just a few miles away.
Education. The City is served by Temecula Valley Unified School District, one of the fastest growing
school districts in the State, with 4 high schools (including a continuation school), 5 middle schools (including
an alternative academy), 3 charter schools, I home-schooling program, and 12 elementary schools. In addition,
there are 9 private schools and several pre-schools.
The general boundaries extend north to Jean Nicholas Road in French Valley, south to the Riverside
County line, east to Vail Lake, and west to the Temecula city limit. The District covers approximately 150
square miles. Approximately 21,466 students (Grades K-12) are currently enrolled in the District.
The University of California, Riverside has opened an extension center in the City and Mt. San Jacinto
Community College operates a campus ten miles north ofthe City to serve the growing population. Temecula
began the 1990s with a well-educated population, and its population trends and school performance figures have
allowed it to maintain that position.
Transportation. Interstate 15 and its connecting arterials provide convenient links to San Diego and
Riverside, Los Angeles (Interstate 10), Orange County (Highway 91) and San Bernardino (Interstate 215). The
French Valley Airport, 4 miles north of Interstate 15 on Winchester Road, accommodates business jets and
commuter airlines.
Housing: Temecula is unique in that its residents are about equidistant from both San Diego and
Orange County via the Interstate 15 freeway. As a result, it is receiving growth impulses from the south as well
as the north, as families spill into the Inland Empire from Southern California's more congested coastal
counties. Temecula's rapid population growth represents a relatively new phenomenon in Southern California.
A large number of the City's new residents have migrated north from San Diego County along the Interstate
5 freeway. Normally, a Southern California community undergoes rapid growth only when population spills
from Orange or Los Angeles counties. The latest population data shows Temecula with 72,715 residents as of
January, 2002, which includes the annexation of the Vail Ranch area in July, 2001.
A-6
APPENDIX B
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
B-1
[THIS PAGE INTENTIONALLY LEFT BLANK]
APPENDIX C
SUMMARY APPRAISAL REPORT
C-I
APPENDIX D
SUMMARY MARKET ABSORPTION STUDY
D-I
APPENDIX E
SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT
E-I
APPENDIX F
FORM OF DISTRICT CONTINUING DISCLOSURE AGREEMENT
This CONTINUING DISCLOSURE AGREEMENT (the "Disclosure Agreement") is executed and
entered into as ofJune 1,2003 by and among U.S. Bank National Association, a national banking association
organized and existing under and by virtue of the laws of the United States of America (the "Bank"), in its
capacity as Dissemination Agent (the "Dissemination Agent") and in its capacity as fiscal agent (the "Fiscal
Agent"), and the Temecula Public Financing Authority, a joint exercise of powers authority organized and
existing under and by virtue of the Constitution and of the laws of the State of California (the "Authority"),
for and on behalf of the Temecula Public Financing Authority Community Facilities District No. 03-1, (the
"District");
WITNESSETH:
WHEREAS, pursuant to the Fiscal Agent Agreement, dated as of June I, 2003 (the "Fiscal Agent
Agreement"), by and between the Authority, for and on behalf of the District, and the Fiscal Agent, the
Authority has issued its Special Tax Bonds, Series 2003-A in the aggregate principal amount of$
(the "Bonds"); and
WHEREAS, this Disclosure Agreement is being executed and delivered by the Authority and the
Fiscal Agent for the benefit of the owners and beneficial owners of the Bonds and in order to assist the
underwriter of the Bonds in complying with Securities and Exchange Commission Rule 15c2-12(b)(5);
NOW, THEREFORE, for and in consideration of the mutual premises and covenants herein
contained, the parties hereto agree as follows:
Section I. Definitions. Capitalized undefined terms used herein shall have the meanings ascribed
thereto in the Fiscal Agent Agreement. In addition, the following capitalized terms shall have the following
meanings:
"Annual Report" shall mean any Annual Report provided by the Authority pursuant to, and described
in, Sections 2 and 3 of this Disclosure Agreement.
"Annual Report Date" shall mean the date in each year that is eight months after the end of the
Authority's fiscal year, which date, as of the date of this Disclosure Agreement, is March 1.
"Disclosure Representative" shall mean the Finance Director ofthe City of Temecula, as Treasurer
of the Authority, or his or her designee, or such other office or employee as the Authority shall designate in
writing to the Fiscal Agent from time to time.
"Dissemination Agent" shall mean U.S. Bank National Association, acting in its capacity as
Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the Authority
and which has filed with the Fiscal Agent a written acceptance of such designation.
"Listed Events" shall mean any of the events listed in Section 4(a) of this Disclosure Agreement.
F-I
"National Repository" shall mean any Nationally Recognized Municipal Securities Information
Repository for purposes of the Rule. Information on the National Repositories as of a particular date is
available on the Internet at www.sec.gov/consumer/nrrnsir.htm.
"Official Statement" shall mean the Official Statement, dated
, 2003, relating to the
Bonds.
"Participating Underwriter" shall mean Stone & Youngberg LLC.
"Repository" shall mean each National Repository and each State Repository.
"Rule" shall mean Rule 15c2-12(b )(5) adopted by the Securities and Exchange Commission under
the Securities Exchange Act of 1934, as the same may be amended from time to time.
"State Repository" shall mean any public or private repository or entity designated by the State of
California as a state repository for the purpose of the Rule and recognized as such by the Securities and
Exchange Commission. As of the date of this Disclosure Agreement, there is no State Repository.
Section 2. Provision of Annual Reoorts.
(a) The Authority shall, or, upon furnishing the Annual Report to the Dissemination
Agent, shall cause the Dissemination Agent to, provide to each Repository, to the Fiscal Agent and
to the Participating Underwriter an Annual Report which is consistent with the requirements of
Section 3 of the Disclosure Agreement, not later than the Annual Report Date, commencing with the
report for the 2003/04 fiscal year. The Annual Report may be submitted as a single document or as
separate documents comprising a package, and may include by reference other information as
provided in Section 3 of this Disclosure Agreement; provided, however, that the audited financial
statements of the Authority, if any, may be submitted separately from the balance of the Annual
Report, and later than the date required above for the filing ofthe Annual Report if not available by
that date. If the Authority's fiscal year changes, it shall give notice of such change in the same
manner as for a Listed Event under Section 4(f).
(b) Not later than fifteen (15) Business Days prior to the date specified in subsection
(a) for providing the Annual Report to Repositories, the Authority shall provide the Annual Report
(in a form suitable for reporting to the Repositories) to the Dissemination Agent, the Fiscal Agent
(if the Fiscal Agent is not the Dissemination Agent) and the Participating Underwriter. Ifby such
date, the Fiscal Agent has not received a copy of the Annual Report, the Fiscal Agent shall contact
the Disclosure Representative and the Dissemination Agent to inquire if the Authority is in
compliance with the first sentence of this subsection (b). The Authority shall provide a written
certification with each Annual Report furnished to the Dissemination Agent to the effect that such
Annual Report constitutes the Annual Report required to be furnished by it hereunder. The
Dissemination Agent may conclusively rely upon such certification of the Authority and shall have
no duty or obligation to review such Annual Report.
(c) If the Fiscal Agent is unable to verifY that an Annual Report has been provided to
Repositories by the date required in subsection (a), the Fiscal Agent shall send a notice to the
Repositories and the appropriate State Repository, if any, in substantially the form attached as
Exhibit A.
(d) The Dissemination Agent shall:
F-2
(i) determine each year prior to the date for providing the Annual Report the
name and address of each National Repository and each State Repository,
if any; and
(ii) file a report with the Authority, the Participating Underwriter and (if the
Dissemination Agent is not the Fiscal Agent) the Fiscal Agent certifying
that the Annual Report has been provided pursuant to this Disclosure
Agreement, stating the date it was provided and listing all the Repositories
to which it was provided.
Section 3. Content of Annual Reports. The Authority's Annual Report shall contain or incorporate
by reference the following:
(a) The Authority's audited financial statements, if any, prepared in accordance with
generally accepted accounting principles as promulgated to apply to government entities from time
to time by the Governmental Accounting Standards Board. If the Authority's audited financial
statements, if any, are not available by the time the Annual Report is required to be filed pursuant
to Section 2(a), the Annual Report shall contain unaudited financial statements in a format similar
to that used for the Authority's audited financial statements, and the audited financial statements,
if any, shall be filed in the same manner as the Annual Report when they become available. If the
Authority's audited financial statements, ifany, or unaudited financial statements are already filed,
the Annual Report may reference that such financial statements are on file with the Repositories.
(b) The following information:
(i) The principal amount of Bonds, and parity bonds, if any, outstanding as
of September 30 next preceding the date of the Annual Report Date.
(ii) The balance in the Reserve Fund, if any, and a statement of the Reserve
Requirement as of the September 30 next preceding the Annual Report
Date and the balance in the other funds and accounts held under the Fiscal
Agent Agreement.
(iii) Information regarding the amount ofthe annual special taxes levied in the
District by Rate and Method of Apportionment of Special Tax land use
categories, the names ofthe owners of property responsible for more than
5% ofthe Special Tax levy and the amount of Special Tax owed, as shown
on such assessment roll of the Riverside County Assessor last equalized
prior to the September 30 next preceding the Annual Report Date.
(iv) The total assessed value of all parcels within the District on which the
Special Taxes are levied, as shown on the assessment roll of the Riverside
County Assessor last equalized prior to the September 30 next preceding
the Annual Report Date, and a statement of assessed value for the property
in the District by Rate and Method of Apportionment of Special Tax land
use categories.
(v) The Special Tax delinquency rate for all parcels within the District on
which the Special Taxes are levied, as shown on the assessment roll ofthe
Riverside County Assessor last equalized prior to the September 30 next
F-3
preceding the Annual Report Date, the number of parcels within the
District on which the Special Taxes are levied and which are delinquent
in payment of Special Taxes based on parcels, as shown on the assessment
roll on the Riverside County Assessor last equalized prior to the
September 30 next preceding the Annual Report Date, the amount of each
delinquency, the length of time delinquent and the date on which
foreclosure was commenced, or similar information pertaining to
delinquencies deemed appropriate by the District; provided, however, that
parcels with aggregate delinquencies of$5,000 or less (excluding penalties
and interest) may be grouped together and such information may be
provided by category.
(vi) The status of foreclosure proceedings for any parcels within the District
on which the Special Taxes are levied and a summary of the results of any
foreclosure sales as of the September 30 next preceding the Annual Report
Date.
(vii) The identity of any property owner representing more than five percent
(5%) ofthe annual Special Tax levy who is delinquent in payment of such
Special Taxes, as shown on such assessment roll of the Riverside County
Assessor last equalized prior to the September 30 next preceding the
Annual Report Date.
(viii) A summary of (a) zoning changes, if any, approved by the City of
Temecula (the "City") for property subject to the Special Tax in the
District and (b) building permits issued by the City for property subject to
the Special Tax in the District.
(c) In addition to any of the information expressly required to be provided under
paragraphs (a) and (b) of this Section, the Authority shall provide such further information, if any,
as may be necessary to make the required statements, in the light of the circumstances under which
they are made, not misleading.
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the Authority or related public entities,
which have been submitted to each of the Repositories or the Securities and Exchange Commission.
If the document included by reference is a final official statement, it must be available from the
Municipal Securities Rulemaking Board. The Community Facilities District shall clearly identify
each such other document so included by reference.
Section 4. Reoorting of Significant Events.
(a) Pursuant to the provisions of this Section 4, the Authority shall give, or cause to be
given, notice ofthe occurrence of any of the following events with respect to the Bonds, if material:
(i) Principal and interest payment delinquencies;
(ii) Non-payment related defaults;
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(iii) Unscheduled draws on debt service reserves reflecting fmancial
difficulties;
(iv) Unscheduled draws on credit enhancements reflecting financial
difficulties;
(v) Substitution of credit or liquidity providers, or their failure to perform;
(vi) Adverse tax opinions or events affecting the tax-exempt status of the
security;
(vii) Modifications to rights of security holders;
(viii) Contingent or unscheduled bond calls;
(ix) Defeasances;
(x) Release, substitution, or sale of property securing repayment of the
securities;
(xi) Rating changes; and
(xii) Receipt by the Authority of notice that a credit on liquidity facility will not
be renewed, replaced or extended.
(b) The Fiscal Agent shall, within five (5) business days of obtaining actual knowledge
of the occurrence of any of the Listed Events, contact the Disclosure Representative, inform such
person of the event, and request that the Authority promptly notify the Dissemination Agent in
writing whether or not to report the event pursuant to subsection (t), provided, however, that the
Dissemination Agent shall have no liability to Bond Owners for any failure to provide such notice.
For purposes of this Disclosure Agreement, "actual knowledge" of the occurrence of the Listed
Events described under clauses (ii), (iii), (vi), (x) and (xi) above shall mean actual knowledge by an
officer at the corporate trust office ofthe Fiscal Agent. The Fiscal Agent shall have no responsibility
for determining the materiality of any of the Listed Events.
(c) Whenever the Authority obtains knowledge of the occurrence of a Listed Event,
whether because of a notice from the Fiscal Agent pursuant to subsection (b) or otherwise, the
Authority shall as soon as possible determine if such event would be material under applicable
Federal securities law.
(d) If the Authority determines that knowledge of the occurrence of a Listed Event
would be material under applicable Federal securities law, the Authority shall promptly notify the
Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report the
occurrence pursuant to subsection (t). The Authority shall provide the Dissemination Agent with a
form of notice of such event in a format suitable for reporting to the Municipal Securities
Rulemaking Board and each State Repository, if any.
(e) If in response to a request under subsection (b), the Authority determines that the
Listed Event would not be material under applicable Federal securities law, the Authority shall so
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notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the
occurrence pursuant to subsection (t).
(t) If the Dissemination Agent has been instructed by the Authority to report the
occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with the
Municipal Securities Rulemaking Board and each State Repository and shall provide a copy of such
notice to each Participating Underwriter described on Exhibit B attached hereto. Notwithstanding
the foregoing, notice of Listed Events described in subsections (a)(viii) and (ix) need not be given
under this subsection any earlier than the notice (if any) of the underlying event is given to owners
of affected Bonds pursuant to the Fiscal Agent Agreement.
Section 5. Termination of Reoorting Obligation. All of the Authority's obligations under this
Disclosure Agreement shall terminate upon the earliest to occur of (i) the legal defeasance of the Bonds, (ii)
prior redemption ofthe Bonds or (iii) payment in full of all the Bonds. If such determination occurs prior to
the final maturity of the Bonds, the Authority shall give notice of such termination in the same manner as for
a Listed Event under Section 4(t).
Section 6. Dissemination Agent. The Authority may, from time to time, appoint or engage a
Dissemination Agent to assist in carrying out its obligations under this Disclosure Agreement, and may
discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The
initial Dissemination Agent shall be U.S. Bank National Association The Dissemination Agent may resign
by providing forty-five (45) days' written notice to the Authority and the Fiscal Agent (if the Fiscal Agent
is not the Dissemination Agent). The Dissemination Agent shall have no duty to prepare the Annual Report
nor shall the Dissemination Agent be responsible for filing any Annual Report not provided to it by the
Authority in a timely manner and in a form suitable for filing. If at any time there is not any other designated
Dissemination Agent, the Fiscal Agent shall be the Dissemination Agent.
Section 7. Amendment: Waiver. Notwithstanding any other provision of this Disclosure Agreement,
the Authority, the Fiscal Agent and the Dissemination Agent may amend this Disclosure Agreement (and the
Fiscal Agent and the Dissemination Agent shall agree to any amendment so requested by the Authority, so
long as such amendment does not adversely affect the rights or obligations of the Fiscal Agent or the
Dissemination Agent), and any provision of this Disclosure Agreement may be waived, provided that the
following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 2(a), 3 or 4(a), it
may only be made in connection with a change in circumstances that arises from a change in legal
reqttirements, change in law, or change in the identity, nature, or status of an obligated person with
respect to the Bonds, or type of business conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the
opinion of nationally recognized bond counsel, have complied with the requirements ofthe Rule at
the time of the primary offering of the Bonds, after taking into account any amendments or
interpretations of the Rule, as well as any change in circumstances; and
(c) the proposed amendment or waiver either (i) is approved by owners ofa majority
ofthe owners of the Bonds affected thereby in the manner provided in the Fiscal Agent Agreement
for amendments to the Fiscal Agent Agreement with the consent of owners, or (ii) does not, in the
opinion of nationally recognized bond counsel, materially impair the interests of the owners or
beneficial owners of the Bonds.
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Ifthe annual financial information or operating data to be provided in the Annual Report is amended
pursuant to the provisions hereof, the first annual financial information containing the amended operating data
or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the
change in the type of operating data or financial information being provided.
If an amendment is made to the undertaking specifying the accounting principles to be followed in
preparing financial statements, the annual financial information for the year in which the change is made shall
present a comparison between the financial statements or information prepared on the basis of the new
accounting principles and those prepared on the basis of the former accounting principles. The comparison
shall include a qualitative discussion of the differences in the accounting principles and the impact of the
change in the accounting principles on the presentation of the financial information in order to provide
information to investors to enable them to evaluate the ability of the Authority to meet its obligations,
including its obligation to pay debt service on the Bonds. To the extent reasonably feasible, the comparison
shall be quantitative. A notice ofthe change in the accounting principles shall be sent to the Repositories in
the same manner as for a Listed Event under Section 4(1).
Section 8. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent
the Authority from disseminating any other information, using the means of dissemination set forth in this
Disclosure Agreement or any other means of communication, or including any other information in any
Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this
Disclosure Agreement. If the Authority chooses to include any information in any Annual Report or notice
of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure
Agreement, the Authority shall have no obligation under this Disclosure Agreement to update such
information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 9. Default. In the event ofa failure of the Authority, the Dissemination Agent or the Fiscal
Agent to comply with any provision of this Disclosure Agreement, the Fiscal Agent may (and, at the written
direction of any Participating Underwriter or the owners of at least 25% aggregate principal amount of
Outstanding Bonds, shall, upon receipt of indemnification reasonably satisfactory to the Fiscal Agent), or any
owner or beneficial owner of the Bonds may, take such actions as may be necessary and appropriate,
including seeking mandate or specific performance by court order, to cause the Authority, the Dissemination
Agent or the Fiscal Agent, as the case may be, to comply with its obligations under this Disclosure
Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the
Fiscal Agent Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of
the Authority, the Dissemination Agent or the Fiscal Agent to comply with this Disclosure Agreement shall
be an action to compel performance.
Section 10. Duties. Immunities and Liabilities of Fiscal Agent and Dissemination Agent. Section
7.01 and Section 7.02 of the Fiscal Agent Agreement are hereby made applicable to this Disclosure
Agreement as if this Disclosure Agreement were (solely for this purpose) contained in the Fiscal Agent
Agreement, and the Fiscal Agent and the Dissemination Agent shall be entitled to the protections, limitations
from liability and indemnities afforded to the Fiscal Agent thereunder. The Dissemination Agent and the
Fiscal Agent shall have only such duties hereunder as are specifically set forth in this Disclosure Agreement.
This Disclosure Agreement does not apply to any other securities issued or to be issued by the Authority.
The Dissemination Agent shall have no obligation to make any disclosure concerning the Bonds, the
Authority or any other matter except as expressly set out herein, provided that no provision of this Disclosure
Agreement shall limit the duties or obligations of the Fiscal Agent under the Fiscal Agent Agrecment. The
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Dissemination Agent shall have no responsibility for the preparation, review, form or content of any Annual
Report or any notice of a Listed Event. The fact that the Fiscal Agent has or may have any banking, fiduciary
or other relationship with the Community Facilities District or any other party, apart from the relationship
created by the Fiscal Agent Agreement and this Disclosure Agreement, shall not be construed to mean that
the Fiscal Agent has knowledge or notice of any event or condition relating to the Bonds or the Community
Facilities District except in its respective capacities under such agreements. No provision of this Disclosure
Agreement shall require or be construed to require the Dissemination Agent to interpret or provide an opinion
concerning any information disclosed hereunder. Information disclosed hereunder by the Dissemination
Agent may contain such disclaimer language concerning the DisseminationAgent's responsibilities hereunder
with respect thereto as the Dissemination Agent may deem appropriate. The Dissemination Agent may
conclusively rely on the determination of the Community Facilities District as to the materiality of any event
for purposes of Section 4 hereof. Neither the Fiscal Agent nor the Dissemination Agent make any
representation as to the sufficiency ofthis Disclosure Agreement for purposes ofthe Rule. The Dissemination
Agent shall be paid compensation by the Community Facilities District for its services provided hereunder
in accordance with its schedule of fees, as amended from time to time, and all expenses, legal fees and
advances made or incurred by the Dissemination in the performance of its duties hereunder. The Community
Facilities District's obligations under this Section 10 shall survive the termination of this Disclosure
Agreement.
Section II. Beneficiaries. The Participating Underwriter and the owners and beneficial owners from
time to time ofthe Bonds shall be third party beneficiaries under this Disclosure Agreement. This Disclosure
Agreement shall inure solely to the benefit of the Community Facilities District, the Fiscal Agent, the
Dissemination Agent, the Participating Underwriter and owners and beneficial owners from time to time of
the Bonds, and shall create no rights in any other person or entity.
Section 12. Notices. Any notice or communications herein required or permitted to be given to the
Authority, the Fiscal Agent or the Dissemination Agent shall be writing and shall be deemed to have been
sufficiently given or served for all purposes by being delivered or sent by telecopy or by being deposited,
postage prepaid, in a post office letter box, to the addresses set forth below, or to such other address as may
be provided to the other parties hereinafter listed in writing from time to time, namely:
If to the Authority:
Temecula Public Financing Authority
43200 Business Park Drive
Temecula, California 92590
Attention: Director of Finance
Telephone: 909/694-6430
Telecopier: 909/694-6479
If to the Community
Facilities District:
Community Facilities District No. 03-1
43200 Business Park Drive
Temecula, California 92590
Attention: Director of Finance
Telephone: 909/694-6430
Telecopier: 909/694-6479
Ifto the
U.S. Bank National Association
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Dissemination
Agent:
If to the
Fiscal Agent:
If to the
Participating
Underwriter:
550 South Hope Street, Suite 500
Los Angeles, California 90071
Telephone: 213/533-8712
Telecopier: 213/533-8729
U.S. Bank National Association
550 South Hope Street, Suite 500
Los Angeles, California 90071
Telephone: 213/533-8712
Telecopier: 213/533-8729
Stone & Youngberg LLC
One Ferry Building
San Francisco, California 94111
Telephone: 415/981-1314
Attention: Municipal Research Department
Section 13. Future Determination of Obligated Persons. In the event the Securities Exchange
Commission amends, clarifies or supplements the Rule in such a manner that requires any landowner within
the Authority to be an obligated person as defined in the Rule, nothing contained herein shall be construed
to require the Authority to meet the continuing disclosure requirements of the Rule with respect to such
obligated person and nothing in this Disclosure Agreement shall be deemed to obligate the Authority to
disclose information concerning any owner of land within the Authority except as required as part of the
information required to be disclosed by the Authority pursuant to Section 4 and Section 5 hereof.
Section 14. Severabilitv. In case anyone or more of the provisions contained herein shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision hereof.
Section 15. State of California Law Governs. The validity, interpretation and performance of this
Purchase Agreement shall be governed by the laws of the State of California.
Section 16. Counteroarts. This Disclosure Agreement may be executed in several counterparts, each
of which shall be an original and all of which shall constitute but one and the same instrument.
Section 17. Merger. Any person succeeding to all or substantially all ofthe Dissemination Agent's
corporate trust business shall be the successor Dissemination Agent without the filing of any paper or any
further act.
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IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agreement as of the
date first above written.
TEMECULA PUBLIC FINANCING AUTHORITY,
FOR AND ON BEHALF OF TEMECULA PUBLIC
FINANCING AUTHORITY COMMUNITY
FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
By:
Authorized Officer
U.S. BANK NATIONAL ASSOCIATION,
as Fiscal Agent
By:
Authorized Officer
U.S. BANK NATIONAL ASSOCIATION,
as Dissemination Agent
By:
Authorized Officer
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EXHIBIT A
NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD
OF FAILURE TO FILE SEMI-ANNUAL REPORT
Name ofIssuer:
Temecula Public Financing Authority, for and on behalf of Temecula Public
Financing Authority Community Facilities District No. 03-1 (Crowne Hill)
Name of Bond Issue:
Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill)
Special Tax Bonds, Series 2003-A
Date ofIssuance:
,2003
NOTICE IS HEREBY GIVEN that the Temecula Public Financing Authority (the "Authority") has not
provided an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure
Agreement, dated as of June 1,2003, by and between the U.S. Bank National Association, in its capacity as
Fiscal Agent, and in its capacity as Dissemination Agent, and the Authority. [The Authority anticipates that
the Annual Report will be filed by .]
Dated:
U.S. Bank National Association, as Fiscal Agent,
on behalf of the Temecula Public Financing
Authority
Authorized Officer
cc: Temecula Public Financing Authority
Stone & Youngberg LLC
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EXHIBIT B
PARTICIPATING UNDERWRITER
Stone & Youngberg LLC
One Ferry Building
San Francisco, California 94111
Telephone: (415) 981-1314
Attention: Municipal Research Department
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APPENDIX G
FORMS OF DEVELOPER CONTINUING DISCLOSURE AGREEMENTS
G-I
APPENDIX H
FORM OF OPINION OF BOND COUNSEL
H-I
APPENDIX I
BOOK-ENTRY SYSTEM
The following description of the procedures and record keeping with respect to beneficial ownership
interests in the 2003 Bonds, payment of principal of and interest on the 2003 Bonds to Direct Participants,
indirect Participants or Beneficial Owners (as such terms are defined below) of the 2003 Bonds, confirmation
and transfer of beneficial ownership interests in the 2003 Bonds and other Bond-related transactions by and
between DTC, Direct Participants, indirect Participants and Beneficial Owners of the 2003 Bonds is based
solely on information furnished by DTC to the District which the District believes to be reliable, but the
Authority, the District and the Underwriter do not and cannot make any independent representations
concerning these matters and do not take responsibility for the accuracy or completeness thereof Neither the
DTC, Direct Participants, Indirect Participants nor the Beneficial Owners should rely on the foregoing
information with respect to such matters, but should instead confirm the same with DTC or the DTC
Participants, as the case may be.
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for
the 2003 Bonds. The 2003 Bonds will be issued as fully registered securities registered in the nameof Cede
& Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative
of DTC. One fully registered 2003 Bond will be issued for each maturity of the 2003 Bonds, each in the
aggregate principal amount of such maturity and will be deposited with DTC.
DTC, the world's largest 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 17 A of the Securities Exchange
Act of 1934. DTC holds and provides asset servicing for over 2 million issues of U.S. and non-U.S. equity
issues, corporate and municipal debt issues and money market instruments from over 85 countries that DTC's
participants (the "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 ofThe Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned
by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation,
Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing
Corporation, (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries of DTCC), as well as by the New York
Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers,
Inc. Access to the DTC system is also available to others such as 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 (the "Indirect Participants"). DTC has Standard & Poor's
highest rating: AAA. 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.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the 2003 Bonds on DTC's records. The ownership interest of each actual purchaser of each
2003 Bond (the "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 2003 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
I-I
not receive certificates representing their ownership interests in the 2003 Bonds, except in the event that use
of the book-entry system for the 2003 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 requested by an authorized
representative ofDTC. The deposit of2003 Bonds with DTC and their registration in the name of Cede & Co.
or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the
actual Beneficial Owners of the 2003 Bonds; DTC's records reflect only the identity of the Direct Participants
to whose accounts such Bonds are credited, which mayor may not be the Beneficial Owners. The Direct or
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 DirectParticipants, 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 2003 Bonds may wish to take certain steps to augment the
transmissions to them of notices of significant events with respect to the 2003 Bonds, such as redemptions,
tenders, defaults, and proposed amendments to the 2003 Bonds documents. For example, Beneficial Owners
of 2003 Bonds may wish to ascertain that the nominee holding the 2003 Bonds for their benefit has agreed to
obtain and transmit notices to Beneficial Owners.
Redemption notices shall be sent to DTC. Ifless than all ofthe 2003 Bonds 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 such other DTC nominee) will consent or vote with respect to the
2003 Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to the District 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
the 2003 Bonds are credited on the Record Date (identified in a listing attached to the Omnibus Proxy).
Principal, redemption price and interest payment on the 2003 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
District, the Authority or the Fiscal Agent, on a payment 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 ofDTC (nor the
nominee), the Fiscal Agent, the Authority or the District, subject to any statutory and regulatory requirements
as may be in effect from time to time. Payment of principal, redemption price and interest payments to Cede
& Co. (or such othernominee as may be requested by an authorized representative ofDTC) is the responsibility
of the Fiscal Agent, 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 service as depository with respect to the 2003 Bonds at any time
by giving reasonable notice to the Fiscal Agent. Under such circumstances, in the event that a successor
depository is not obtained, Bond certificates are required to be printed and delivered as described in the Fiscal
Agent Agreement.
The Authority may decide to discontinue use of the system of book-entry transfers through DTC (or
a successor securities depository). In that event, Bond certificates will be printed and delivered as described
in the Fiscal Agent Agreement.
1-2
The information in this section concerning DTC andDTC's book-entry system has been obtained from
sources that the Authority and the District believe to be reliable, but the Authority and the District take no
responsibility for the accuracy thereof.
Discontinuance of DTC Services
In the event that (a) DTC determines not to continue to act as securities depository for the 2003 Bonds,
or (b) the Authority determines that DTC shall no longer act and delivers a written certificate to the Fiscal
Agent to that effect, then the Authority will discontinue the Book-Entry System with DTC for the 2003 Bonds.
If the Authority determines to replace DTC with another qualified securities depository, the Authority will
prepare or direct the preparation of a new single separate, fully registered Bond for each maturity of the 2003
Bonds registered in the name of such successor or substitute securities depository as are not inconsistent with
the terms of the Fiscal Agent Agreement. If the Authority fails to identify another qualified securities
depository to replace the incumbent securities depository for the 2003 Bonds, then the 2003 Bonds shall no
longer be restricted to being registered in the 2003 Bond registration books in the name of the incumbent
securities depository or its nominee, but shall be registered in whatever name or names the incumbent securities
depository or its nominee transferring or exchanging the 2003 Bonds shall designate.
In the event that the Book-Entry System is discontinued, the following provisions would also apply:
(i) the 2003 Bonds will be made available in physical form, (ii) principal of, and redemption premiums if any,
on the 2003 Bonds will be payable upon surrender thereof at the trust office of the Fiscal Agent identified in
the Fiscal Agent Agreement, and (iii) the 2003 Bonds will be transferable and exchangeable as provided in the
Fiscal Agent Agreement.
The Authority. the District and the Fiscal Agent do not have any responsibility or obligation to DTC
Participants. to the persons for whom they act as nominees, to Beneficial Owners, or to any other person who
is not shown on the registration books as being an owner of the 2003 Bonds, with respect to (i) the accuracy
of any records maintained by DTC or any DTC Participants; (ii) the payment by DTC or any DTC Participant
of any amount in respect of the principal of, redemption price of or interest on the 2003 Bonds; (iii) the delivery
of any notice which is permitted or required to be given to registered owners under the Fiscal Agent Agreement;
(iv) the selection by DTC or any DTC Participant of any person to receive payment in the event of a partial
redemption of the 2003 Bonds; (v) any consent given or other action taken by DTC as registered owner; or (vi)
any other matter arising with respect to the 2003 Bonds or the Fiscal Agent Agreement. The Authority, the
District and the Fiscal Agent cannot and do not give any assurances that DTC, DTC Participants or others will
distribute payments of principal of or interest on the 2003 Bonds paid to DTC or its nominee, as the registered
owner, or any notices to the Beneficial Owners or that they will do so on a timely basis or will serve and act
in a manner described in this Official Statement. The Authority. the District and the Fiscal Agent are not
responsible or liable for the failure of DTC or any DTC Participant to make any payment or give any notice
to a Beneficial Owner in respect to the 2003 Bonds or any error or delay relating thereto.
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$
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
SPECIAL TAX BONDS, SERI;ES 2003-A
BOND PURCHASE AGREEMENT
July _' 2003
Temecula Public Financing Authority
43200 Business Park Drive
Temecula, California 92590
Ladies and Gentlemen:
Stone & Youngberg LLC (the "Underwriter") offers to enter into this Bond Purchase
Agreement (the "Bond Purchase Agreement") with the Temecula Public Financing Authority (the
"Authority") for and on behalf ofTemecula Public Financing Authority Community Facilities DistrictNo. 03-
I (CroWlle Hill) (the "District") which, upon acceptance, will be binding upon the Authority and upon the
Underwriter. This offer is made subject to acceptance of it by the Authority on the date hereof, and ifnot
accepted will be subject to withdrawal by the Underwriter upon notice delivered to the Authority at any time
prior to the acceptance hereof by the Authority.
I. Purchase. Sale and Deliverv of the Bonds
(a) Subject to the terms and conditions and in reliance upon the representations,
warranties and agreements set forth herein, the Underwriter agrees to purchase from the Authority, and the
Authority agrees to sell to the Underwriter, all (but not less than all) of the Temecula Public Financing
Authority Community Facilities District No. 03-1 (Crowne Hill) Special Tax Bonds, Series 2003-A (the
"Bonds") in the aggregate principal amount of$ . The Bonds are dated their date of delivery, and
bear interest at the rates set forth in Exhibit A hereto (payable on each March I and September I of each year,
commencing September 1,2003) and mature on September 1,2033. The purchase price for the Bonds shall
be as set forth in Exhibit A hereto.
The Bonds will be subject to demand for and mandatory purchase pursuant to the provisions
ofthe Fiscal Agent Agreement by and between the Authority and U.S. Bank National Association, as fiscal
agent (the "Fiscal Agent") dated as of June 1,2003 (the "Fiscal Agent Agreement").
The Bonds shall be substantially in the form described in, shall be issued and secured under
the provisions of, and shall be payable and subject to redemption as provided in, the Fiscal Agent Agreement.
The Bonds and interest thereon will be payable from a special tax (the "Special Tax") levied and collected
in accordance with the Fiscal Agent Agreement and Ordinance No. TPFA 03-01 (Crowne Hill) (the
"Ordinance") adopted by the Board of Directors of the Authority (the "Board") on April 8, 2003, pursuant
to the Mello-Roos Community Facilities Act of 1982, as amended (Sections 53311 et seq. ofthe Government
Code of the State of California) (the "Act"). The proceeds of the Bonds shall be applied (i) to finance the
acquisition and construction of certain street and signal improvements, storm drain improvements, sewer and
water improvement, fire protection improvements and park and recreation improvements (collectively, the
"Improvements") within or in the vicinity of the District, (ii) to eliminate in whole [or in part] an existing
special assessment lien (the "Prior Lien") on parcels in the District, (iii) to pay interest on the 2003 Bonds
for a limited period of time, (iv) to pay certain administrative expenses of the District (v) to pay the costs of
issuing the 2003 Bonds and (vi) to establish a Reserve Fund for the 2003 Bonds.
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(b) Pursuantto the authorization of the Authority, the Underwriter has distributed copies
ofthe Preliminary Official Statement, dated June _,2003, relating to the Bonds, which, together with the
cover page and all appendices thereto, is herein called the "Preliminary Official Statement" and which, as
amended by the Authority with the prior approval of the Underwriter, will be referred to herein as the
"Official Statement." The Authority hereby ratifies the use by the Underwriter of the Preliminary Official
Statement and authorizes the Underwriter to use and distribute the Official Statement, the Fiscal Agent
Agreement, the other documents or contracts to which the Authority is a party, including this Bond Purchase
Agreement, relating to the Bonds, and all information contained therein, and all other documents, certificates
and statements furnished by the Authority to the Underwriter in connection with the transactions
contemplated by this Bond Purchase Agreement, in connection with the offer and sale of the Bonds by the
Underwriter.
(c) At 8:00 A.M., Los Angeles time, on July _, 2003, or at such other time or on such
earlier or later business day as shall be agreed upon by the Underwriter and the Authority (such time and date
being herein referred to as the "Closing Date"), the Authority will deliver to the Underwriter (i) at the offices
of The Depository Trust Company, in New York, New York, the Bonds in temporary or definitive form,
bearing CUSIP numbers, and duly executed by the officers of the Authority and authenticated by the Fiscal
Agent as provided in the Fiscal Agent Agreement, and (ii) at the offices of Quint & Thimmig LLP in San
Francisco, California, the other documents herein mentioned; and the Underwriter shall accept such delivery
and pay the purchase price of the Bonds as set forth in Section I(a) hereof by wire transfer of immediately
available funds. The date of this payment and delivery, together with the delivery of the aforementioned
documents, is herein called the "Closing." Notwithstanding the foregoing, the Underwriter may, in its
discretion, accept delivery of the Bonds in temporary form upon making arrangements with the Authority
which are satisfactory to the Underwriter relating to the delivery of the Bonds in definitive form. The Bonds
shall be in fully registered form, registered in the name of CEDE & Co., as nominee of The Depository Trust
Company. The failure to print CUSIP identification numbers on any of the Bonds or any error with respect
thereto shall not constitute cause for a failure or refusal of the Underwriter to accept delivery of, or pay for,
the Bonds in accordance with the terms of this Bond Purchase Agreement.
(d) The Underwriter agrees to offer all the Bonds to the public initially at the a price of
par. Subsequent to the initial public offering of the Bonds, the Underwriter reserves the right to change the
public offering prices (or yields) as it deems necessary in connection with the marketing of the Bonds. The
Bonds may be offered and sold to certain dealers at prices lower than such initial public offering prices.
2. Reoresentations. Warranties and Agreements of the Authoritv. The Authority
represents, warrants and covenants to and agrees with the Underwriter that:
(a) The District is duly organized and validly existing as a community facilities district
under the laws of the State of California (the "State") and the Authority has, and at the Closing Date will
have, as the case may be, full legal right, power and authority for and on behalf of the District (i) to adopt the
Procedural Resolutions (as defined below) and the Ordinance, (ii) to execute and deliver the Bonds and the
District Documents (as defined below) and to perform its obligations under the Bonds and the District
Documents, (iii) to issue, sell and deliver the Bonds to the Underwriter pursuant to the Procedural Resolutions
and the Fiscal Agent Agreement as provided herein, and (iv) to carry out, give effect to and consummate the
transactions on its part contemplated by the Procedural Resolutions, the Official Statement, the Bonds and
the District Documents. For purposes of this Bond Purchase Agreement, Resolution No. TPF A 03-1 adopted
by the Board on January 28, 2003 stating the intention to establish the District, Resolution No. TPF A 03-2
adopted by the Board on January 28, 2003 stating the intention to incur bonded indebtedness, Resolution No.
TPF A 03-05 adopted by the Board on March 25, 2003 establishing the District and authorizing the levy of
the Special Tax within the District, Resolution No. TPF A 03-06 adopted by the Board on March 25, 2003
declaring the necessity to incur bonded indebtedness, Resolution No. TPF A 03-07 adopted by the Board on
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March 25, 2003 calling for a special election in the District, Resolution No. TPF A 03-08 adopted by the
Board on March 25, 2003 declaring the results of the election, Resolution No. TPF A 03-~ adopted by the
Board on May 13,2003, calling for a of special ratifying election, Resolution No. TPFA 03-~ adopted
by the Board on May 13,2003, declaring results of special ratifying election and directing recording of notice
of special tax lien, and Resolution No. TPF A 03- ~ adopted by the Board on May 13, 2003 authorizing
the issuance of the Bonds are referred to as the "Procedural Resolutions" and the Fiscal Agent Agreement,
the Bond Purchase Agreement, the District Continuing Disclosure Agreement (the "District Continuing
Disclosure Agreement"), dated as of June I, 2003 by and between the District and U.S. Bank National
Association, as dissemination agent (the "Dissemination Agent"), the Acquisition Agreement (the
"Acquisition Agreement"), dated as of March I, 2003 by and between the Authority and Lennar Homes of
California, Inc., a California corporation ("Lennar Homes"), and the Joint Community Facilities Agreement-
City (the "Joint Community Facilities Agreement - City"), dated as of March 1,2003 by and between the
Temecula Public Financing Authority and the City ofTemecula (the "City"), the Joint Community Facilities
Agreement -RCWD (the "Joint Community Facilities Agreement - RCWD"), dated as of March 1,2003 by
and among the Temecula Public Financing Authority, the Rancho California Water District ("RCWD") and
Lennar Homes, the Joint Community Facilities Agreement - EMWD (the "Joint Community Facilities
Agreement - EMWD"), dated as of March 1,2003 by and among the Temecula Public Financing Authority,
Eastern Municipal Water District ("EMWD") and Lennar Homes, and the Joint Community Facilities
Agreement - Cal Trans (the "Joint Community Facilities Agreement - Cal Trans"), dated as of March I, 2003
by and between the Temecula Public Financing Authority and the State of California Department of
Transportation are referred to herein as the "District Documents");
(b) The Authority has complied, and will at the Closing Date be in compliance, in all
respects material to issuance and delivery of the Bonds with the Bonds, the District Documents and the Act
and the Authority will continue to comply with the covenants of the Authority contained in the Bonds and
the District Documents;
(c) The Board for and on behalf of the District has duly and validly: (i) adopted the
Procedural Resolutions and the Ordinance, (ii) called, held and conducted in accordance with all requirements
ofthe Act an election to approve the levy of the Special Tax, (iii) authorized the preparation and delivery of
the Preliminary Official Statement and the Official Statement, (iv) authorized and approved the execution and
delivery ofthe Bonds and the District Documents; and (v) authorized and approved the performance by the
Authority of its obligations contained in, and the taking of any and all action on its part as may be necessary
to carry out, give effect to and consummate the transactions on its part contemplated by, each of said
documents (including, without limitation, the levy and collection of the Special Tax and the use of the
proceeds of the Bonds to acquire public improvements), and at the Closing Date the Bonds and the District
Documents have been, or on or before the Closing Date, will be duly executed and delivered by the Authority
and on the Closing Date, the Bonds and the District Documents will constitute the valid, legal and binding
obligations of the Authority on behalf ofthe District, and (assuming due authorization, execution and delivery
by other parties thereto, where necessary of the other parties thereto) will be enforceable in accordance with
their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting
the enforcement of creditors' rights in general and to the application of equitable principles if equitable
remedies are sought;
(d) The Authority is not in breach of or default under any applicable law or
administrative rule or regulation of the State or the United States of America, or of any department, division,
agency or instrumentality of either thereof, or under any applicable court or administrative decree or order,
or under any loan agreement, note, resolution, indenture, fiscal agent agreement, contract, agreement or other
instrument to which the Authority is a party or is otherwise subject or bound, a consequence of which could
be to materially and adversely affect the performance by the Authority of its obligations under the Procedural
Resolutions, the Ordinance, the Bonds or the District Documents and compliance with the provisions of each
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thereof, will not conflict with or constitute a breach of or default under any applicable law or administrative
rule or regulation of the State, or of any department, division, agency or instrumentality thereof, or under any
applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture,
fiscal agent agreement, contract, agreement or other instrument to which the Authority is a party or is
otherwise subject or bound a consequence of which could be to materially and adversely affect the ability of
the Authority to perform its obligations under the Bonds or any District Documents;
(e) The adoption of the Procedural Resolutions and the Ordinance, and the execution
and delivery by the Authority of the Bonds, the Official Statement and the District Documents and
compliance by the Authority with the provisions thereof, did not and will not conflict with or constitute a
breach of or default under any applicable law or administrative rule or regulation of the State or the United
States of America, or of any department, division, agency or instrumentality of either thereof, or under any
applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture,
fiscal agent agreement, contract, agreement or other instrument to which the Authority is a party or is
otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability
of the Authority to perform its obligations under the Bonds or any of the District Documents;
(I) All approvals, consents, authorizations, elections and orders of or filings or
registrations with any State governmental authority, board, agency or commission having j urisdiction which
would constitute a condition precedent to, or the absence of which would materially adversely affect, the
ability of the Authority to execute and deliver and perform its obligations under the Bonds or the District
Documents have been or will be obtained and are in full force and effect, except that the Authority provides
no representation regarding compliance with "Blue Sky" or other securities laws or regulations whatsoever;
(g) The Bonds, the Procedural Resolutions, the Ordinance and the District Documents
conform as to form and tenor to the descriptions thereof contained in the Preliminary Official Statement, and
which will be contained in the Official Statement as of the Closing Date, and when delivered to and paid for
by the Underwriter on the Closing Date as provided herein, the Bonds will be validly issued and outstanding;
(h) The Special Tax constituting the security for the Bonds has been duly and lawfully
authorized and may be levied under the Act and the Constitution and the applicable laws
ofthe State, and such Special Tax, when levied, will constitute a valid lien on the properties on which it has
been levied;
(i) Except as described in the Official Statement under the caption "THE COMMUNITY
FACILITIES DISTRICT - Direct and Overlapping Debt," " - Overlapping Assessment and Community
Facilities Districts" and" -Other Overlapping Direct Assessments," there are no otttstanding assessment liens
or special tax liens levied by the Authority for itself or on behalf of any community facilities district or
assessment district against any of the properties within the District which are senior to the Special Tax lien
referred to in paragraph I(a) hereof, and the Authority has no present intention of conducting further
proceedings leading to the levying of additional special taxes or assessments against any of the properties
within the District;
U) As of the date thereof, the Preliminary Official Statement (excluding the information
under the captions of "THE COMMUNITY FACILITIES DISTRICT - Property Ownership," as to which
the Authority and the District shall not be required to express any view) did not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading; the
Official Statement (excluding the information under the captions of "THE COMMUNITY FACILITIES
DISTRICT - Property Ownership," as to which the Authority and the District shall not be required to express
any view) does not and, as of the Closing Date, will not contain any untrue or misleading statement of a
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material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
(k) After the Closing Date and until the date which is twenty-five (25) days after the
underwriting period (as defined below) (i) the Authority will not adopt any amendment of or supplement to
the Official Statement to which the Underwriter shall object in writing or which shall be disapproved by
counsel for the Underwriter, and (ii) if any event shall occur of which the Authority is aware, as a result of
which it is necessary, in the reasonable opinion of counsel for the Underwriter, to amend or supplement the
Official Statement in order to make the Official Statement not misleading in the light of the circumstances
existing at the time it is delivered to an initial purchaser of the Bonds, the Authority will forthwith prepare
and furnish to the Underwriter a reasonable number of copies of an amendment of or supplement to the
Official Statement (in form and substance satisfactory to counsel for the Underwriter) which will amend or
supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances existing at the time the Official Statement is delivered to an initial purchaser ofthe
Bonds, not misleading. The costs of preparing any necessary amendment or supplement to the Official
Statement shall be borne by the District. The term "end of the underwriting period" means the later of such
time as (i) the Authority delivers the Bonds to the Underwriter or (ii) the Underwriter does not retain an
unsold balance of the Bonds for sale to the public. Unless the Underwriter gives notice to the contrary, the
"end of the underwriting period" shall be deemed to be the Closing Date. Any notice delivered pursuant to
this provision shall be written notice delivered to the Authority at or prior to the Closing Date, and shall
specifY a date (other than the Closing Date) to be deemed the "end of the underwriting period;"
(I) The Fiscal Agent Agreement creates a valid pledge of the Special Tax Revenues and
any other amounts (including proceeds of the sale of the Bonds) held in the Bond Fund and the Special Tax
Fund established pursuant to the Fiscal Agent Agreement, subject in all cases to the provisions of the Fiscal
Agent Agreement permitting the application thereoffor the purposes and on the terms and conditions set forth
therein;
(m) No action, suit, proceeding, inquiry or investigation, at law or in equity, before or
by any court, regulatory agency, public board or body is pending against the Authority with respect to which
the Authority has been served with process, or to the knowledge of the Authority threatened, affecting the
existence of the Authority or the District or the titles of its officers to their respective offices (i) which would
materially adversely affect the ability of the Authority to perform its obligations under the Bonds or the
District Documents, or (ii) seeking to restrain or to enjoin the development ofthe land within the District, the
issuance, sale or delivery of the Bonds, the application ofthe proceeds thereof in accordance with the Fiscal
Agent Agreement, or the collection or application of the Special Tax pledged or to be pledged to pay the
principal of and interest on the Bonds, or the pledge thereof, or in any way contesting or affecting the validity
or enforceability of the Bonds, the District Documents, any other instruments relating to the development of
any of the property within the District, or any action of the Authority contemplated by any of said documents,
or (iii) in any way contesting the completeness or accuracy of the Preliminary Official Statement or the
Official Statement or the powers or authority of the Authority with respect to the Procedural Resolutions, the
Ordinance, the Bonds or the District Documents, or any action of the Authority contemplated by any of said
documents; or (iv) which alleges that interest on the Bonds is not excludable from gross income for federal
income tax purposes or is not exempt from State personal income taxation, nor to the knowledge of the
Authority is there any basis therefor;
(n) The Authority will furnish such information, execute such instruments and take such
other action in cooperation with the Underwriter as the Underwriter may reasonably request in order for the
Underwriter to qualifY the Bonds for offer and sale under the "Blue Sky" or other securities laws and
regulations of such states and other jurisdictions of the United States as the Underwriter may designate;
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provided, however, the Authority shall not be required to register as a dealer or a broker of securities nor shall
the Authority be required to consent to service of process or jurisdiction or qualify to do business in any
jurisdiction or to expend funds for this purpose;
(0) Any certificate signed by any official of the Authority authorized to do so and
delivered by the Authority at the Closing shall be deemed a certification to the Underwriter by the Authority
as to the statements made therein;
(P) During the period from the date hereof until the Closing Date, the Authority agrees
to furnish the Underwriter with copies of any documents it files with any regulatory authority which are
requested by the Underwriter;
(q) The Authority is not in default, nor has the Authority been in default at any time, as
to the payment of principal or interest with respect to an obligation issued by the Authority or with respect
to an obligation guaranteed by the Authority as guarantor;
(r) The Authority will apply the proceeds from the sale ofthe Bonds as set forth in and
for the purposes specified in the Fiscal Agent Agreement;
(s) The Authority will undertake, pursuant to the Fiscal Agent Agreement and the
District Continuing Disclosure Agreement to provide certain annual financial information and information
about the District, together with notices ofthe occurrence of certain events, if material. A copy of the District
Continuing Disclosure Agreement is set forth in Appendix F of the Preliminary Official Statement and will
also be set forth in the Official Statement, and the specific nature of the information to be contained in the
Annual Report (as defined in the District Continuing Disclosure Agreement) or the notices of material events
is set forth in the District Continuing Disclosure Agreement;
(I) The Preliminary Official Statement heretofore delivered to the Underwriter was, and
hereby is, expressly deemed final by the Authority as of its date, except for the omission of such information
as is permitted to be omitted in accordance with paragraph (b)(I) of Section 240.l5c2-12 in Chapter II ofTitle
17 of the Code of Federal Regulations ("Rule 15c2-12"). The Authority hereby covenants and agrees that,
within seven (7) business days from the date hereof, or upon reasonable written notice from the Underwriter
within sufficient time to accompany any conformation requesting payment from any customers of the
Underwriter, the Authority shall cause a final printed form of the Official Statement to be delivered to the
Underwriter in sufficient quantity specified by the Underwriter to comply with paragraph (b)( 4) of Rule 15c2-
12 and Rules G-12, G-15, G-32 and G-36 of the Municipal Securities Rulemaking Board;
(u) The District has not failed to comply with any continuing disclosure undertaking
previously entered into in connection with the provisions of Rule 15c2-12(b)(5); and
(v) Except as disclosed in the Official Statement, the Authority and the City have not
failed to comply with any continuing disclosure undertaking previously entered into for itself or on behalf
of another entity, in connection with the provisions of Rule 15c2-12(b)(5).
3. Conditions to the Obligations of the Underwriter. The obligations ofthe Underwriter
to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the
Underwriter, to the accuracy in all material respects ofthe representations and warranties on the part of the
Authority contained herein, as of the date hereof and as of the Closing Date, to the accuracy in all material
respects of the statements ofthe officers and other officials of the Authority made in any certificates or other
documents furnished pursuant to the provisions hereof, to the performance by the Authority of its obligations
to be performed hereunder at or prior to the Closing Date and to the following additional conditions:
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(a) At the Closing Date, the Procedural Resolutions, the Ordinance, the Bonds, the
District Documents, and any other applicable agreements, shall be in full force and effect, and shall not have
been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter,
and there shall have been taken in connection therewith, with the issuance of the Bonds and with the
transactions contemplated thereby and by this Bond Purchase Agreement, all such actions as, in the opinion
of Quint & Thimmig LLP, San Francisco, California ("Bond Counsel"), shall be necessary and appropriate.
(b) At the Closing Date, the Official Statement shall be in form and substance
satisfactory to the Underwriter and the Authority and shall not contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.
(c) Between the date hereof and the Closing Date, the market price or marketability of
the Bonds at the initial offering prices set forth in the Official Statement shall not have been materially
adversely affected, in the reasonable judgment of the Underwriter (evidenced by a written notice to the
Authority terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds), by
reason of any of the following:
(I) legislation introduced in or enacted (or resolution passed) by the Congress
of the United States of America or recommended to the Congress by the President of the United
States, the Department of the Treasury, the Internal Revenue Service, or any member of Congress,
or favorably reported for passage to either House of Congress by any committee of such House to
which such legislation had been referred for consideration or a decision rendered by a court
established under Article III of the Constitution ofthe United States of America or by the Tax Court
ofthe United States of America, or an order, ruling, regulation (final, temporary or proposed), press
release or other form of notice issued or made by or on behalf of the Treasury Department or the
Internal Revenue Service of the United States of America, with the purpose or effect, directly or
indirectly, of imposing federal income taxation upon the interest as would be received by the owners
of the Bonds beyond the extent to which such interest is subject to taxation as of the date hereof;
(2) legislation introduced in or enacted (or resolution passed) by the Congress
of the United States of America, or an order, decree or injunction issued by any court of competent
jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form
of notice issued or made by or on behalf of the Sccurities and Exchange Commission, or any other
governmental agency having jurisdiction of the subject matter, to the effect that obligations of the
general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not
exempt from registration under or other requirements of the Securities Act of 1933, as amended, or
that the Fiscal Agent Agreement is not exempt from qualification under or other requirements of the
Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the
general character of the Bonds, or of the Bonds, including any or all underwriting arrangements, as
contemplated hereby or by the Official Statement or otherwise is or would be in violation of the
federal securities laws as amended and then in effect;
(3) a general suspension of trading in securities on the New York Stock
Exchange, or a general banking moratorium declared by Federal, State of New York or State officials
authorized to do so;
(4) any amendment to the federal or State Constitution or action by any federal
or State court, legislative body, regulatory body or other authority materially adversely affecting the
tax status of the Authority or the District, its property, income, securities (or interest thereon) or the
validity or enforceability of the Special Tax;
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(5) any event occurring, or information becoming known, which, in the
reasonable judgment of the Underwriter, makes untrue in any material respect any statement or
information contained in the Official Statement, or results in the Official Statement containing any
untrue or misleading statement of a material fact or omitting to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading;
(6) the entry of an order by a court of competent jurisdiction which enjoins or
restrains the City from issuing permits, licenses or entitlements within the District, which order, in
the reasonable opinion of the Underwriter, materially and adversely affects proposed developments
within the District in particular or the City in general;
(7) any legislation, ordinance, rule or regulation shall be introduced in, or be
enacted by any governmental body, department or agency of the State or a decision by any court of
competent jurisdiction within the State or any court of the United States shall be rendered which, in
the reasonable opinion of the Underwriter, materially adversely affects the market price of the Bonds;
(8) additional material restrictions not in force as of the date hereof shall have
been imposed upon trading in securities generally by any governmental authority or by any national
securities exchange which restrictions materially adversely affect the Underwriter's ability to market
the Bonds; or
(9) the United States has become engaged in hostilities which have resulted in
a declaration of war or a national emergency or there has occurred any other outbreak or escalation
of hostilities or a national or international calamity or crisis, financial or otherwise, the effect of such
outbreak, calamity or crisis on the financial markets of the United States, being such as, in the
reasonable opinion of the Underwriter, would affect materially and adversely the ability of the
Underwriter to market the Bonds.
(d) On or prior to the Closing Date, the Underwriter shall have received two counterpart
originals or certified copies of each of the following documents, in each case satisfactory in form and
substance to the Underwriter:
(I) The Procedural Resolutions and the Ordinance, together with a certificate
dated as ofthe Closing Date of the Secretary ofthe Board to the effect that each is a true, correct and
complete copy of the one duly adopted by the Board;
(2) An executed copy of the Fiscal Agent Agreement;
(3) An executed copy of this Bond Purchase Agreement;
(4) An executed copy of the Official Statement;
(5) An executed copy of the District Continuing Disclosure Agreement;
(6) An executed copy of the Acquisition Agreement;
(7) An executed copy of the Joint Community Facilities Agreements;
(8) An approving opinion, dated the Closing Date and addressed to the
Authority, of Bond Counsel for the Authority, in the form attached to the Official Statement as
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Appendix H and a letter, dated the Closing Date and addressed to the Underwriter, to the effect that
such opinion addressed to the Authority may be relied upon by the Underwriter to the same extent
as if such opinion was addressed to it;
(9) A supplemental opinion, dated the Closing Date and addressed to the
Underwriter of Bond Counsel to the effect that (i) the Bonds are not subject to the registration
requirements of the Securities Act of 1933, as amended and the Fiscal Agent Agreement is exempt
from qualification pursuant to the Trust Indenture Act of 1939, as amended; (ii) the Bond Purchase
Agreement has been duly authorized, executed and delivered by the Authority, and (assuming the
due authorization, execution and delivery by, and validity against, the Underwriter) is a valid and
binding agreement ofthe Authority enforceable in accordance with its terms, except as enforcement
may be limited by bankruptcy, moratorium, insolvency or other laws affecting creditor's rights or
remedies and is subject to general principles of equity (regardless of whether such enforceability is
considered in equity or at law); (iii) the statements contained in the Official Statement on the cover
page and under the captions "INTRODUCTION - Sources of Payment for the 2003 Bonds,"
"INTRODUCTION - Tax Exemption," "THE 2003 BONDS," "SECURITY FOR THE 2003
BONDS," "LEGAL MATTERS - Tax Exemption," APPENDIX E - "Summary of Certain
Provisions of the Fiscal Agent Agreement" and APPENDIX H - "Form of Opinion of Bond Counsel"
and are accurate insofar as such statements expressly summarize certain provisions of the Bonds, the
Fiscal Agent Agreement and such firm's opinion concerning certain federal tax matters relating to
the Bonds and (iv) the District is duly formed as a community facilities district under the Act;
(10) An opinion, dated the Closing Date and addressed to the District and the
Underwriter of McFarlin & Anderson LLP, Disclosure Counsel, to the effect that without having
undertaken to determine independently the accuracy, completeness or fairness of the statements
contained in the Official Statement, but on the basis of their participation in conferences with
representatives of the District, Richards, Watson & Gershon ("District Counsel"), Bond Counsel,
representatives of the Underwriter, representatives of Lennar Homes, Pillsbury Winthrop LLP, as
counsel to the Lennar Merchant Builders, and others, and their examination of certain documents,
no information has come to their attention which would lead them to believe that the Official
Statement as of its date and as of the Closing Date contained any untrue statement of a material fact
or omitted to state any material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading
(except that no opinion or belief need be expressed as to the information concerning the information
under the captions APPENDIX B - "Temecula Public Financing Authority Community Facilities
District No. 03-1 (Crowne Hill) Rate and Method of Apportionment of Special Tax," APPENDIX
D - "Summary of Certain Provisions of Fiscal Agent Agreement," APPENDIX H - "Fonn of
Opinion of Bond Counsel" and APPENDIX I - "Book-Entry System," any financial, statistical or
economic data or forecasts, numbers, charts, tables, graphs, maps, estimates, projections, assumptions
or expressions of opinion, or any information about valuation, appraisals, market absorption or
environmental matters or any information about book-entry or DTC contained in the Official
Statement);
(II) An opinion, dated the Closing Date and addressed to the Underwriter, ofthe
City Attorney, as counsel to the Authority and to the District, to the effect that:
(i) The Authority is duly organized and validly existing under the Constitution and laws
of the State of California;
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(ii) The District is duly organized and validly existing as a community facilities district
under the laws of the State, with full legal right, power and authority to issue the Bonds and to
perform all of its obligations under the Bonds and the District Documents;
(iii) To the best of such counsel's knowledge, no action, suit, proceeding, inquiry or
investigation, at law or in equity, before or by any court, regulatory agency, public board or body is
pending or threatened against the Authority or the District affecting the existence of the Authority
or the District or the title of their officers to their respective offices, or which would materially
adversely affect the ability of the Authority to perform its obligations hereunder or under the Bonds
or the District Documents or seeking to restrain or to enjoin the development of property within the
District, the issuance, sale, or delivery of the Bonds or the exclusion from gross income for federal
income tax purposes or State personal income taxes of interest on the Bonds, or the application of
the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application
of the Special Tax to pay the principal of and interest on the Bonds, or in any way contesting or
affecting the validity or enforceability of the Bonds or the District Documents or any action of the
Authority contemplated by any of said documents or the accuracy or completeness ofthe Preliminary
Official Statement or the Official Statement;
(iv) The Board on behalf of the District has duly and validly adopted the Procedural
Resolutions and the Ordinance at meetings ofthe Board which were called and held pursuant to law
and with all public notice required by law and at which a quorum was present and acting at the time
of adoption, and the Procedural Resolutions and the Ordinance are now in full force and effect and
have not been amended;
(v) To the best of such counsel's knowledge, the Authority and the District are not in
breach of or in default under any applicable law or administrative rule or regulation of the State or
the United States of America, or of any department, division, agency or instrumentality of either
thereof, or under any applicable court or administrative decree or order, or under any loan agreement,
note, resolution, indenture, fiscal agent agreement, contract, agreement or other instrument to which
the Authority or the District is a party or is otherwise subject or bound, a consequence of which could
be to materially and adversely affect the ability of the Authority or the District to perform their
obligations under the Procedural Resolutions, the Ordinance, the Bonds or any District Documents
or which, with the passage of time or the giving of notice or both, would constitute an event of
default thereunder;
(vi) The adoption of the Procedural Resolutions and the Ordinance, and the execution
and delivery of the Bonds and the District Documents, and compliance with the provisions of each,
did not and will not conflict with or constitute a breach of or default under any applicable court or
administrative decree or order, or under any loan agreement, note, ordinance, resolution, indenture,
fiscal agent agreement, contract, agreement or other instrument to which the Authority or the District
is a party or is otherwise subject or bound, a consequence of which could be to materially and
adversely affect the ability ofthe Authority to perform its obligations under the Bonds or any District
Documents; and
(vii) Without having undertaken to determine independently the accuracy, completeness
or fairness ofthe statements contained in the Official Statement, but on the basis oftheir participation
in conferences with representatives ofthe Authority, the District, Bond Counsel, Disclosure Counsel,
representatives of the Underwriter, Lennar Communities, Inc. ("Lennar Communities") and others,
and their examination of certain documents, no information has come to their attention which would
lead them to believe that the information with respect to the Authority and the District in the Official
Statement, as of its date and as of the Closing Date, contained any untrue statement of a material fact
10
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or omitted to state any material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading
(except that no opinion or belief need be expressed as to any Appendix to the Official Statement or
any other financial, statistical or economic data or forecasts, numbers, charts, graphs, estimates,
projections, assumptions or expressions of opinion, or any information about valuation or appraisals,
or any information about Lennar Communities, the Lennar Merchant Builders, LENOne, PCC 100,
KB Home Coastal, PCC III (as such terms are defined in the Official Statement) the book-entry or
DTC contained in the Official Statement);
(12) A Certificate, dated the Closing Date and signed by an authorized
representative of the Authority, certifying that (i) the representations and warranties of the Authority
contained in this Bond Purchase Agreement are true and correct in all material respects on and as of
the Closing Date with the same effect as if made on the Closing Date; (ii) no event has occurred since
the date ofthe Official Statement affecting the matters contained therein which should be disclosed
in the Official Statement for the purposes for which it is to be used in order to make the statements
and information contained in the Official Statement with respect to the Authority or the District not
misleading in any material respect; (iii) the Authority has complied with all the agreements and
satisfied all the conditions on its part to be performed or satisfied under the Bonds and the District
Documents at or prior to the Closing Date in order to issue the Bonds;
(13) A certificate of the Authority, in a form acceptable to Bond Counsel,
containing the Authority's reasonable expectations in support of the conclusion that the Bonds are
not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as
amended;
(14) An opinion of counsel to the Fiscal Agent, dated the Closing Date, addressed
to the Underwriter, in form and substance satisfactory to the Underwriter, to the effect that:
(i) The Fiscal Agent is a national banking association, organized and existing under and
by virtue of the laws of the United States of America;
(ii) The Fiscal Agent has duly authorized the execution and delivery of the Fiscal Agent
Agreement and the Continuing Disclosure Agreements (as defined below);
(iii) The Fiscal Agent Agreement and the Continuing Disclosure Agreements have been
duly entered into and delivered by the Fiscal Agent and assuming due, valid and binding
authorization, execution and delivery by the other parties thereto, constitute the legal, valid and
binding obligations of the Fiscal Agent enforceable against the Fiscal Agent in accordance with their
terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency or
other similar laws affecting the enforcement of creditors' rights generally, or by general principles
of equity;
(iv) Acceptance by the Fiscal Agent of the duties and obligations under the Fiscal Agent
Agreement, and the Continuing Disclosure Agreements and compliance with provisions thereofwill
not conflict with or constitute a breach of or default under any law or administrative regulation, court
decree, resolution, charter, by-laws, agreement, instrument or commitment to which the Fiscal Agent
is subject;
(v) All approvals, consents and orders of any governmental authority or agency having
jurisdiction in the matter which would constitute a condition precedent to the performance by the
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Fiscal Agent of its duties and obligations under the Fiscal Agent Agreement, and the Continuing
Disclosure Agreements have been obtained and are in full force and effect;
(vi) To such counsel's knowledge, there is no litigation pending or threatened against or
affecting the Fiscal Agent to restrain or enjoin the Fiscal Agent's participation in, or in any way
contesting the powers ofthe Fiscal Agent with respect to the transactions contemplated by the Bonds
or the Fiscal Agent Agreement; and
(vii) To such counsel's knowledge, there is no litigation pending or threatened against or
affecting the Fiscal Agent to restrain or enjoin the Fiscal Agent's participation in, or in any way
contesting the powers ofthe Fiscal Agent with respect to the transactions contemplated by the Bonds,
or the Fiscal Agent Agreement;
(15) A certificate of the Fiscal Agent, dated the Closing Date, in form and
substance acceptable to counsel for the Underwriter, to the following effect:
(i) The Fiscal Agent is a national banking association, and is organized and existing
under and by virtue of the laws of the United States of America, and has the full power and authority
to accept and perform its duties under the Fiscal Agent Agreement, and the Continuing Disclosure
Agreements;
(ii) Subject to the provisions of the Fiscal Agent Agreement, the Fiscal Agent will apply
the proceeds from the Bonds to the purposes specified in the Fiscal Agent Agreement;
(iii) The Bonds have been duly and validly authenticated on behalf of Fiscal Agent;
(iv) No consent, approval, authorization or other action by any governmental or
regulatory authority having jurisdiction over the Fiscal Agent that has not been obtained is or will
be required for the authentication ofthe Bonds or the consummation by the Fiscal Agent ofthe other
transactions contemplated to be performed by the Fiscal Agent in connection with the authentication
of the Bonds and the acceptance and performance of the obligations created by the Fiscal Agent
Agreement;
(v) There is no action, suit, proceeding, inquiry or investigation, at law or in equity,
before or by any court, regulatory agency, public board or body pending or, to the best of its
knowledge, threatened in any way affecting the existence of the Fiscal Agent, or seeking to restrain
or to enjoin the execution and delivery of the Fiscal Agent Agreement, or the Continuing Disclosure
Agreements, or the authentication of the Bonds, by the Fiscal Agent, or in any way contesting or
affecting the validity or enforceability, as against the Fiscal Agent, of the Fiscal Agent Agreement,
or the Continuing Disclosure Agreements or any action ofthe Fiscal Agent contemplated by any of
said documents, or in which an adverse outcome would materially and adversely affect the ability
ofthe Fiscal Agent to perform its obligations under the Fiscal Agent Agreement, or the Continuing
Disclosure Agreements;
(vi) The Fiscal Agent is not in breach of or in default under any applicable law or
administrative rule or regulation of the State or the United States of America, or of any department,
division, agency or instrumentality of either thereof, or under any applicable court or administrative
decree or order, or under any loan agreement, note, resolution, indenture, fiscal agent agreement,
contract, agreement or other instrument to which the Fiscal Agent is a party or is otherwise subject
or bound, a consequence of which could be to materially and adversely affect the ability of the Fiscal
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Agent to perform its obligations under the Fiscal Agent Agreement, or the Continuing Disclosure
Agreements; and
(vii) The authentication of the Bonds, and the execution and delivery of the Fiscal Agent
Agreement, and the Continuing Disclosure Agreements by the Fiscal Agent, and compliance with
the provisions of each, will not conflict with or constitute a breach of or default under any applicable
law or administrative rule or regulation of the State or the United States of America, or of any
department, division, agency or instrumentality of either thereof, or under any applicable court or
administrative decree or order, or under any loan agreement, note, ordinance, resolution, indenture,
fiscal agent agreement, contract, agreement or other instrument to which the Fiscal Agent is a party
or is otherwise subject or bound, a consequence of which could be to materially and adversely affect
the ability of the Fiscal Agent to perform its obligations under the Fiscal Agent Agreement, or the
Continuing Disclosure Agreements;
(16) Certificates each dated the date of the Preliminary Official Statement each
from Lennar Communities, KB Coastal and PCC III, respectively, together with bring-down
certificates dated the Closing Date in substantially the forms attached hereto as Exhibits Band C;
(17) Good standing certificates for Lennar Communities, the Lennar Merchant
Builders, KB Coastal and PCC III from appropriate officials ofthe Secretary of State of the State of
California and from the Franchise Tax Board of the State of California;
(18) Executed copies ofthe Continuing Disclosure Agreements (the "Continuing
Disclosure Agreements") each dated as of June 1,2003, and each by and among U.S. Bank National
Association in its capacity as Fiscal Agent and Dissemination Agent and Lennar Homes, or KB
Home Coastal, respectively, as applicable;
(19) An opinion, dated the Closing Date, addressed to the Authority, the City
and the Underwriter of and of Pillsbury Winthrop LLP, counsel to Lennar
Homes in substantially the forms attached hereto as Exhibit D;
(20)
the U nderwri ter of
hereto as Exhibit D;
An opinion, dated the Closing Date, addressed to the Authority, the City and
, counsel to KB Home Coastal in substantially the form attached
(21) A certificate dated on or before the Closing Date of LEN One in substantially
the fonn attached hereto as Exhibit E and a certificate dated on or before the Closing Date of the
lenders to pcc III which have a loan secured by property within the District in substantially the form
attached hereto as Exhibit E or other evidence provided by PCC III or a lender that there is no event
of default under the loan agreement(s) at this time and acknowledging the priority position ofthe lien
of Special Taxes relative to such lender's security for the loan;
(22) [An executed copy of the Escrow Agreement dated as of June I, 2003 by
and between the Temecula Public Financing Authority and U.S. Bank National Association relating
to Assessment District No. 159 of the County of Riverside Liens on property within the District;]
(23) [A Certificate ofthe Escrow Agent, dated the Closing Date, addressed to the
District and the Underwriter, in form and substance acceptable to the Underwriter to the following
effect:
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(i) the Escrow Agent is duly organized and existing as a national banking association in
good standing under the laws of the United States of America, having the full power and
authority to accept and perform its duties under the Escrow Agreement;
(ii) the Escrow Agent has duly authorized and executed the Escrow Agreement; and
(iii) to the best of the knowledge of the Escrow Agent, the execution and delivery by the
Escrow Agent of the Escrow Agreement and compliance with the terms thereof will not
conflict with, or result in a violation or breach of, or constitute a default under, any loan
agreement, resolution, bond, note, resolution or any other agreement or instrument to which
the Escrow Agent is a party or by which it is bound, or any law or any rule, regulation, order
or decree of any court or government agency or body having jurisdiction over the Escrow
Agent or any of its activities or properties (except that no representation, warranty or
agreement is made by the Escrow Agent with respect to any federal or state securities or
"Blue Sky" laws or regulations), or (except with respect to the lien of the Escrow
Agreement) result in the creation or imposition of any lien, charge or other security interest
or encumbrance of any nature whatsoever upon any of the property or assets of the Escrow
Agent;]
(24) A certificate from Albert A. Webb Associates to the effect that (i) if the
Special Tax is levied in accordance with the terms as set forth in the Rate and Method of
Apportionment of Special Tax of the District and collected, the amount of the levy will be sufficient
to make timely payments of debt service and estimated annual administrative expenses on the Bonds,
provided that acreage and number of units supplied by the District, by Lennar Communities, or by
any of their agents, which has been relied upon by Albert A. Webb Associates is true and correct (no
representation need be made as to the actual amounts that will be collected in future years), (ii) the
amount of the maximum Special Taxes that may be levied in each Fiscal Year is at least 110% of the
armual debt service for the Bonds for each such Fiscal Year, assuming that the net taxable acreage
and projected development figures provided to Albert A. Webb Associates by Lennar Communities
are true and correct, (iii) the description of the Rate and Method of Apportionment of the Special
Taxes contained in the section captioned "SECURITY FOR THE 2003 BONDS - Special Taxes,"
and in Appendix B is correctly presented in all material respects and (iv) that, as of the dates of the
Preliminary Official Statement and the Official Statement the information contained in those portions
of the Official Statement entitled "INTRODUCTION - The Community Facilities District,"
"INTRODUCTION - Sources of Payment for the 2003 Bonds," "SECURITY FOR THE 2003
BONDS - Special Taxes," "SECURITY FOR THE 2003 BONDS - Rate and Method," "THE
COMMUNITY FACILITIES DISTRICT - Estimated Special Tax Allocation by Property," "THE
COMMUNITY FACILITIES DISTRICT - Direct and Overlapping Debt," "THE COMMUNITY
FACILITIES DISTRICT - Overlapping Assessment and Community Facilities Districts,"
"COMMUNITY FACILITIES DISTRICT - Other Overlapping Direct Assessments," "THE
COMMUNITY FACILITIES DISTRICT - Estimated Assessed Value-to-Lien Ratios,"
"BONDOWNERS' RISKS - Levy and Collection of the Special Tax," "BONDOWNERS' RISKS
- Exempt Properties," and in the Tables ofthe Official Statement captioned "Table 7Temecula Public
Financing Authority Community Facilities District No. 03-1 (Crowne Hill) Owners of Taxable
Property as of March 15, 2003 and Estimated Allocation of Special Tax Liability Fiscal Year
2003-04," "Table 8 Temecula Public Financing Authority Community Facilities District No. 03-1
(Crowne Hill) Projected Fiscal Year 2003-04 Special Tax Levy By Zone and RMA Property
Classification, ""Table 9 Temecula Public Finance Authority Community Facilities District No. 03-1
Detailed Direct and Overlapping Debt," and "Appendix B" and the other data provided by the Special
Tax Consultant and included in the Official Statement, do not, to my knowledge, contain any untrue
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statement of a material fact or omit to state a material fact necessary to make the statements made
therein, in light of the circumstances under which they were made, not misleading;
(25) A conformed or certified copy of the Notice of Special Tax Lien recorded
on April 4, 2003 as Document No. 2003-238653, with the County Recorder and a conformed or
certified copy of the First Amended Notice of Special Tax Lien recorded on May 19, 2003 as
Document No. 2003-358388, with the County Recorder;
(26) Certified copies of proceedings relating to formation of the District,
including a copy of the Procedural Resolutions and Ordinance No. TPFA 03-01 (Crowne Hill),
adopted on April 8, 2003 levying the special taxes in accordance with the amended Rate and Method
of Apportionment of Special Taxes;
(27) Evidence that the federal tax information Form 8038-G has been prepared
for filing;
(28) Copies of filings with the California Debt and Investment Advisory
Commission relating to the issuance of the Bonds; and
(29) Such additional legal opinions, certificates, instruments and other documents
as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof
and as of the Closing Date, of the statements and information contained in the Preliminary Official
Statement and the Official Statement, of the Authority's representations and warranties contained
herein and the due performance or satisfaction by the Authority at or prior to the Closing Date of all
agreements then to be performed and all conditions then to be satisfied by the Authority in
connection with the transactions contemplated hereby and by the Procedural Resolutions and the
Official Statement.
(e) At the time of the Closing, no default shall have occurred or be existing under this
Purchase Agreement, the Fiscal Agent Agreement or the District Documents and the Authority and the
District shall not be in default in the payment of principal or interest on any of its bonded indebtedness which
default shall adversely impact the ability of the Authority or the District to make payment on the Bonds.
(I) If the Authority shall be unable to satisfy the conditions to the obligations of the
Underwriter to purchase, accept delivery of and pay for the Bonds contained in this Bond Purchase
Agreement, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds
shall be terminated for any reason permitted by this Bond Purchase Agreement, this Bond Purchase
Agreement shall terminate and neither the Underwriternor the Authority shall be under any further obligation
hereunder, except that the respective obligations of the Authority and the Underwriter set forth and Section
4 hereof shall continue in full force and effect.
4. Exoenses.
Whether or not the Bonds are delivered to the Underwriter as set forth herein:
(a) The Underwriter shall be underno obligation to pay, and the Authority shall
payor cause to be paid (out of any legally available funds of the Authority relating to the District) all
expenses incident to the performance of the Authority's and the District's obligations hereunder, including,
but not limited to, the cost of printing and delivering the Bonds to the Underwriter, the cost of preparation,
printing (and/or word processing and reproduction), distribution and delivery of the Fiscal Agent Agreement,
the Procedural Resolutions, the Ordinance, the Preliminary Official Statement, the Official Statement and all
15
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other agreements and documents contemplated hereby (and drafts of any thereof) in such reasonable
quantities as requested by the Underwriter; the fees and expenses in connection with obtaining a delinquency
report and statement of direct and overlapping bonded debt from Albert A. Webb Associates; and the fees
and disbursements of the Fiscal Agent for the Bonds, Bond Counsel, Disclosure Counsel and any market
absorption consultants, accountants, financial advisors, engineers or any other experts or consultants the
Authority has retained in connection with the Bonds and any out-of-pocket disbursements of the Authority
to be paid from the proceeds ofthe Bonds; and
(b) The Authority shall be underno obligation to pay, and the Underwriter shall
pay, the cost of preparation of any "Blue Sky" or legal investment memoranda; expenses to qualify the Bonds
for sale under any "Blue Sky" or other state securities laws, the fees, if any, payable to the California Debt
and Investment Advisory Commission on account of the Bonds; CUSIP Service Bureau fees; and all other
expenses incurred by the Underwriter in connection with its public offering and distribution of the Bonds
(except those specifically enumerated in paragraph (a) of this section), including any advertising expenses.
5. Notices. Any notice or other communication to be given to the Authority under this
Bond Purchase Agreement may be given by delivering the same in writing to the Temecula Public Financing
Authority, 43200 Business Park Drive, Temecula, California 92590 Attention: Director of Finance; and any
notice or other communication to be given to the Underwriter under this Bond Purchase Agreement may be
given by delivering the same in writing to Stone & Youngberg LLC, 515 South Figueroa Street, Suite 1060,
Los Angeles, California 90071, Attention: Municipal Finance Department; provided, however, that all such
notices, requests or other communications may be made by telephone and promptly confirmed by writing.
The Authority and the Underwriter may, by notice given as aforesaid, specify a different address for any such
notices, request or other communications.
6. Parties in Interest. This Bond Purchase Agreement is made solely for the benefit of
the Authority and the Underwriter (including their successors or assigns), and no other person shall acquire
or have any right hereunder or by virtue hereof.
7. Survival of Reo resent at ions and Warranties. The representations and warranties of
the Authority set forth in or made pursuant to this Bond Purchase Agreement shall not be deemed to have
been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Bond
Purchase Agreement and regardless of any investigations made by or on behalf of the Underwriter (or
statements as to the results of such investigations) concerning such representations and statements of the
Authority and regardless of delivery of and payment for the Bonds.
8. Effective. This Bond Purchase Agreement shall become effective and binding upon
the respective parties hereto upon the execution ofthe acceptance hereof by the Authority and shall be valid
and enforceable as of the time of such acceptance.
9. Aoolicable Law: Nonassignabilitv. This Bond Purchase Agreement shall be
governed by the laws of the State. This Bond Purchase Agreement shall not be assigned by the Authority or
the Underwriter.
10. Execution of Counteroarts. This Bond Purchase Agreement may be executed in
several counterparts, each of which shall be regarded as an original and all of which shall constitute one and
the same.
II. No Prior Agreements. This Bond Purchase Agreement supersedes and replaces all
prior negotiations, agreements and understandings between the parties hereto in relation to the sale of Bonds
by the Authority and represents the entire agreement of the parties as to the subject matter herein.
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12. Partial Unenforceabilitv. Any provision of this Bond Purchase Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions of this Bond Purchase
Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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13. Caoitalized Terms. Terms with initial capital letters not otherwise defined herein
shall have the meanings assigned to them in the Fiscal Agent Agreement or the Official Statement.
Very truly yours,
STONE & YOUNGBERG LLC
By:
ACCEPTED: July _' 2003
TEMECULAPUBLIC FINANCING AUTHORITY FOR
AND ON BEHALF OF THE TEMECULA PUBLIC
FINANCING AUTHORITY COMMUNITY FACILITIES
DISTRICT NO. 03-1 (CROWNE HILL)
By:
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Maturity Date
(September I)
Serial Bonds:
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Term Bonds:
2026
2033
Total Issue
APPENDIX A
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1
(CROWNE HILL)
SPECIAL TAX BONDS, SERIES 2003-A
MATURITY SCHEDULE
Principal
Amount
Interest
Rate
Price
The purchase price of the Bonds shall be $ (which is the principal amount thereof
$ , less an original issue discount of $ , and less the Underwriter's discount of
$ ). In addition, no accrued interest will be paid with respect to the Bonds because the Bonds are
dated the closing date.
A-I
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EXHIBIT B
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CERTIFICATE OF GREYSTONE HOMES, INC.
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Temecula Public Financing Authority (the "Authority") Community
Facilities District No. 03-1 (Crowne Hill) (the "District") 2003 Special Tax Bonds and to the Bond Purchase
Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is
delivered pursuant to and in satisfaction of Section 3( d)( 16) of the Bond Purchase Agreement. Capitalized
terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase
Agreement. The Developer Continuing Disclosure Agreement (the "Developer Continuing Disclosure
Agreement") dated as of June 1,2003 by and between Lennar Homes, Inc., a California corporation ("Lennar
Homes") and U.S. Bank National Association, as Dissemination Agent and Fiscal Agent, the Acquisition
Agreement, dated as of March 1,2003, executed by and between the Authority and Lennar Homes (the
"Acquisition Agreement"), the Joint Community Facilities Agreement -RCWD (the "Joint Community
Facilities Agreement - RCWD"), dated as of March 1,2003 by and among the Temecula Public Financing
Authority, the Rancho California Water District ("RCWD") and Lennar Homes and the Joint Community
Facilities Agreement - EMWD (the "Joint Community Facilities Agreement - EMWD"), dated as of March
I, 2003 by and among the Temecula Public Financing Authority, Eastern Municipal Water District
("EMWD") and Lennar Homes are collectively referred to herein as the "Developer Agreements" and the
Joint Community Facilities Agreement - RCWD and the Joint Community Facilities Agreement - EMWD
are collectively referred to herein as the "Joint Community Facilities Agreements."
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certify the same as an authorized officer of Greystone Homes, Inc., a Delaware corporation
("Greystone Homes"), and the undersigned, on behalf of Greystone Homes further certifies as follows:
1. (i) Greystone Homes is duly organized and validly existing under the laws of the
State of Delaware, qualified to transact business in the State of California and has all requisite
corporate power and authority to execute and deliver this Certificate, and to undertake all of the
transactions on its part described in the Preliminary Official Statement.
2. As set forth in the Preliminary Official Statement, certain property within the District
is owned by LEN One, Inc., a Virginia corporation ("LEN One") with whom Greystone Homes has
entered into various agreements pursuant to which Greystone Homes, Lennar Communities, Inc., a
California corporation ("Lennar Communities"), Lennar Homes, and U.S. Home, Inc., a California
corporation ("U.S. Home") (collectively, the "Lennar Entities") will acquire and develop such
property. In addition, as set forth in the Preliminary Official Statement, title to part of the property
within the District is held in the name of PCC - Crowne Hill I 00, LLC, a Delaware limited liability
company ("PCC 1 00"). Greystone Homes, is the non-member manager of PCC 100 and Lennar
Homes will act as the merchant builder entitled to develop the lots owned by PCC 100. The property
B-1 -- Greystone Homes
owned by LEN One, PCC 100 and Greystone Homes is referred to herein as the "Property." The
undersigned, on behalf of Greystone Homes, makes the representations herein with respect to such
Property. Except as otherwise described in the Preliminary Official Statement, the Lennar Entities
are, and Greystone Homes' current expectation is that the Lennar Entities shall remain the parties
responsible for land use planning and backbone infrastructure ofthe Property on behalf ofthe Lennar
Entities. Greystone Homes has not entered into an agreement for development or management of
the Property by any entity other than as described in the Preliminary Official Statement.
3. Except as described in the Preliminary Official Statement with regard to previous
undertakings relating to Rule 15c2-12 of the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, to the Actual Knowledge of the Undersigned',
Greystone Homes is not aware of any material failures within the past five years by the Lennar
Entities or their Affiliates to provide periodic continuing disclosure reports or notices of material
events with respect to community facilities districts or assessment districts in California. "Affiliate"
of another Person (as defined below) means (a) a Person directly or indirectly owning, controlling,
or holding with power to vote, 15% or more ofthe outstanding voting securities of such other Person,
(b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned,
controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly
controlling, controlled by or under common control with such other Person; for purposes hereof,
control means the power to exercise a controlling influence over the management or policies of a
Person, unless such power is solely the result of an official position with such Person. "Person"
means an individual, a corporation, a partnership, an association, a joint stock company, a trust, any
unincorporated organization or a government or political subdivision thereof.
4. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
of the Undersigned (a) the Lennar Entities and their Affiliates are notin breach of or in default under
any applicable law or administrative regulation of the State of California or the United States, or any
agency or instrumentality of either, which breach or default would in any way materially and
adversely affect the proposed Developer Continuing Disclosure Agreement, the Acquisition
Agreement, the Joint Community Facilities Agreements, or the ability of the respective Lennar
Entities to pay Special Taxes under the Option Agreements (as defined in the Preliminary Official
Statement), (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing
which with the passage oftime or giving of notice, or both, would constitute such a breach or default.
5. Except as disclosed in the Preliminary Official Statement, (a) to the Actual
Knowledge of the Undersigned, the Lennar Entities and their Affiliates are not in breach of or in
default under any applicable judgment or decree or any loan agreement, option agreement,
development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other
instrument to which the Lennar Entities or their Affiliates are, or will upon issuance of the Bonds be,
a party or otherwise subject, which breach or default would in any way materially and adversely
affect the Lennar Entities ability to develop the Property or to pay the Special Taxes, and (b) to the
Actual Knowledge of the Undersigned, no event has occurred and is continuing that with the passage
of time or giving of notice, or both, would constitute such a breach or default.
I As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge
that the undersigned currently has or has obtained from an interview with such officers and responsible employees of
Greystone Homes as the undersigned has determined are likely, in the ordinary course oftheir respective duties, to
have knowledge of the matters set forth herein. With your permission, the undersigned has not conducted any
extraordinary inspection or inquiry other than such inspections or inquiries as are prudent and customary in
connection with the ordinary course of Lennar Home's business and operations.
B-2 -- Greystone Homes
6. Except as described in the Preliminary Official Statement, there are no material loans
outstanding and unpaid and no material lines of credit of Greystone Homes or its Affiliates that are
secured by an interest in the Property.
7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit,
action, or contingent liability litigation is pending (with service of process to Greystone Homes
having been accomplished) or, to the Actual Knowledge ofthe Undersigned, threatened (a) to restrain
or enjoin collection of Special Taxes or other sums pledged or to be pledged to pay the principal of
and interest on the Bonds, (b) to restrain or enjoin the execution of and performance of Lennar
Homes' obligations under the proposed Developer Continuing Disclosure Agreement, the Acquisition
Agreement or the Joint Community Facilities Agreements, (c) to restrain or enjoin development of
the Property, (d) in any way contesting or affecting the validity of the Special Taxes, the proposed
Developer Continuing Disclosure Agreement, the Acquisition Agreement, the Joint Community
Facilities Agreements or any other document, license, permit or approval necessary to the
performance on the Lennar Entities' part under the proposed Developer Continuing Disclosure
Agreement, the Acquisition Agreement or the Joint Community Facilities Agreements or (e) which
would in any way materially and adversely affect the Lennar Entities' ability to develop the Property
or to pay Special Taxes.
8. Except as set forth in the Preliminary Official Statement, no litigation is pending
(with service of process to Greystone Homes or any Affiliate having been accomplished), or, to the
Actual Knowledge of the Undersigned, threatened against the Lennar Entities or any Affiliate
involving the Lennar Entities or any Affiliate, or any of the property or assets under the control of
the Lennar Entities or any Affiliate that involves the possibility of any judgment or uninsured liability
which may result in any material adverse change in the assets or funds held by the Lennar Entities
or any Affiliate that would materially and adversely affect the Lennar Entities' ability to develop the
Property or to pay Special Taxes.
9. As of the date thereof, but solely with respect to information regarding Lennar
Entities, their Affiliates, and LENOne, the proposed development ofthe Property, ownership of the
Property and the Lennar Entities' development plan, the Lennar Entities' financing plan, LEN One,
the Lennar Entities' lenders, if any, and contractual arrangements involving the Lennar Entities and
subject to the exclusions set forth below, the information contained in the Preliminary Official
Statement under the captions "INTRODUCTION - The Community Facilities District," (excluding
therefrom the first two paragraphs for which no certification is made), "CONTINUING
DISCLOSURE - Lennar Homes and KB Home Coastal," and "THE COMMUNITY FACILITIES
DISTRICT" (excluding therefrom infonnation under the subcaptions "Estimated Special Tax
Allocation by Property Ownership,"" - Direct and Overlapping Debt," Overlapping Assessment and
Community Facilities Districts," " - Other Overlapping Direct Assessments," - Transportation
Uniform Mitigation Fee," "- "- Estimated Assessed Value- To-Lien Ratios," "- Market Absorption
Study," and "- Appraised Property Value" for which no certification is made), is true and correct in
all material respects and did not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading.
10. Greystone Homes has full corporate power and authority to own and develop the
Property and to carry on its business as presently conducted and as described in the Preliminary
Official Statement.
I I. Greystone Homes covenants that, while the Bonds or any refunding obligations
related thereto are outstanding, Greystone Homes will not bring any action, suit, proceeding, inquiry
B-3 -- Greystone Homes
or investigation at law or in equity, before any court, regulatory agency, public board or body, that
in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of
Ordinance No. TPF A 03-0 I (Crowne Hill) of the Authority levying Special Taxes within the District,
to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under
Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax
lien relating thereto. The foregoing covenant shall not prevent Greystone Homes in any way from
bringing any other action, suit or proceeding including, without limitation, an action or suit
contending that the Special Tax has not been levied in accordance with the methodologies contained
in the District's Rate and Method of Apportionment of Special Taxes pursuant to which the Special
Taxes are levied, an action or suit with respect to the application or use of the Special Taxes levied
and collected, or an action or suit to enforce the obligations of the Authority under the Resolution
ofIssuance, the Fiscal Agent Agreement, the Acquisition Agreement, the Joint Community Facilities
Agreements or any agreements with the Authority, the City and/or the District for which Greystone
Homes is a party or beneficiary.
12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
of the Undersigned, Greystone Homes is not aware that any other public debt secured by a tax or
assessment on the Property exists or is in the process of being authorized or any assessment districts
or community facilities districts have been or are in the process of being formed that include any
portion of the Property.
13. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
of the Undersigned, Greystone Homes and its Affiliates have not in the last five years defaulted in
payment of, and are not currently delinquent on, any ad valorem, assessment or special tax
obligations in California in any material amount.
14. Greystone Homes consents to the issuance of the Bonds. Oreystone Homes
acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official
Statement, provided that nothing in this statement modifies any right or obligation of the parties
under the Acquisition Agreement or the Joint Community Facilities Agreements.
15. Greystone Homes intends to comply with the provision ofGovemment Code Section
53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or portions
thereof that it takes title to or develops.
16. Greystone Homes acknowledges that interest on the Bonds is estimated to be
capitalized through September 1,2003 and that the Special Tax levies on Developed Property will
commence in Fiscal Year 2003-04 (commencing with the November 1,2003 tax installment) in order
to pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the
District.
17. Greystone Homes is solvent and no proceedings are pending or, to the Actual
Knowledge of the Undersigned, threatened in which Oreystone Homes may be adjudicated as
bankrupt or discharged from any and all of its debts or obligations or granted an extension of time
to pay its debts or obligations or a reorganization or readjustment of its debts.
18. To the Actual Knowledge of the Undersigned, US Homes and Lennar Corporation,
a Delaware corporation ("Lennar Corporation"), are solvent and no proceedings are pending, or to
the Actual Knowledge of the Undersigned, threatened in which US Homes or Lennar Corporation
may be adjudicated as bankrupt or discharged from any or all of their respective debts or obligations,
B-4 -- Greystone Homes
or granted an extension of time to pay their respective debts or obligations, or be allowed to
reorganize or readjust their respective debts or obligations.
19. To the Actual Knowledge ofthe Undersigned, the Lennar Entities have not filed for,
nor is Greystone Homes aware of, current proceedings for the reassessment of the assessed value of
the Property.
20. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits,
actions or contingent liabilities among, by and between Greystone Homes, its Affiliates or any
contractors working on the development of the Property which may materially and adversely affect
the development of the Property or the payment of the Special Taxes on the Property.
21. Based upon the current development plans, including, without limitation, the current
budget and subject to economic conditions and risks generally inherent in the development of real
property, Greystone Homes presently anticipates that the Lennar Entities will have sufficient funds
to carry on their business as presently conducted and as described in the Preliminary Official
Statement and to pay Special Taxes assessed against the Property and does not anticipate that the
Authority or the District will be required to resort to a draw on the Reserve Fund for payment of
principal of or interest on the Bonds due to the Lennar Entities' nonpayment of Special Taxes.
However, none of the Lennar Entities or their Affiliates are obligated to make any additional capital
contribution or loan to the Lennar Entities at any time and the Lennar Entities reserve the right to
change their plan at any time without notice.
22. All information submitted in writing by, or on behalf of, Greystone Homes to the
Authority, the District, the Special Tax Consultant, Stephen G. White, MAl (the "Appraiser"),
Disclosure Counselor the Underwriter in connection with the issuance of the Bonds, was, at the time
of submission, to the Actual Knowledge of the Undersigned true and correct.
23. As to information indicated in Section 9 hereof concerning the Lennar Entities their
Affiliates and the development of the Property, and subject to the limitations and exclusions set forth
in Section 9, Greystone Homes agrees to indemnify and hold harmless, to the extent permitted by
law, the Authority, the District, and their officials and employees, and each person, if any, who
controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as
amended, or of Section 20 of the Securities Exchange Act of 1934, as amended against any and all
losses, claims, damages or liabilities, joint or several, to which such indemnified party may become
subject under any statute or at law or in equity or otherwise, and shall reimburse any such
indemnified party for any reasonable legal or other expense incurred by it in connection with
investigating any claims against it and defending any actions, insofar as such losses, claims, damages,
liabilities or actions arise out of or are based upon any untrue statement of a material fact or the
omission to state a material fact, in the final Official Statement, as of its date or in any continuing
disclosure statement, as of its date, provided by or on behalf of the Lennar Entities or LENOne, a
material fact necessary to make the statement therein, in light ofthe circumstances under which it was
made not misleading. This indemnity provision shall not be construed as a limitation on any other
liability which the Lennar Entities may otherwise have to any indemnified party, provided that in no
event shall Greystone Homes be obligated for double indemnification nor for the negligence or wilful
misconduct of another.
24. Ifbetween the date hereof and the date ofthe Closing, to the Actual Knowledge of
the Undersigned, any event relating to or affecting the Lennar Entities, their Affiliates, LEN One or
the development of the Property shall occur which might or would cause the Official Statement, as
then supplemented or amended, to contain an untrue statement of a material fact or to omit to state
B-5 -- Greystone Homes
a material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading, Greystone Homes shall notify the
Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or the
Underwriter such event requires the preparation and publication of a supplement or amendment to
the Official Statement, Greystone Homes'shall cooperate with the Authority in the preparation of an
amendment or supplement to the Official Statement in form and substance satisfactory to counsel to
the Authority and to the Underwriter.
25. For the "underwriting period," as defined in the Bond Purchase Agreement, if any
event relating to or affecting the Lennar Entities, their Affiliates, LEN One or the development ofthe
Property shall occur as a result of which it is necessary, in the opinion ofthe Underwriter or counsel
to the Authority, to amend or supplement the Official Statement in order to make the Official
Statement not misleading in the light of the circumstances existing at the time it is delivered to a
purchaser, Greystone Homes shall cooperate with the Authority and the Underwriter in the
preparation of an amendment or supplement to the Official Statement in form and substance
satisfactory to the Underwriter and counsel to the Authority which will amend or supplement the
Official Statement so that it will not contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances
existing at the time the Official Statement is delivered to a purchaser, not misleading.
26. Greystone Homes agrees to deliver a Certificate dated the date of issuance of the
Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit A.
27. On behalf of Greystone Homes, I have reviewed the contents of this Certificate and
have met with counsel to Greystone Homes, for the purpose of discussing the meaning of its contents.
Dated: June _' 2003
GREYSTONE HOMES, INC.,
a Delaware corporation
By:
Name:
Title:
B-6 -- Greystone Homes
EXHIBIT B
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CERTIFICATE OF KB HOMES COASTAL
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Temecula Public Financing Authority (the "Authority") Community
Facilities District No. 03-1 (Crowne Hill) (the "District") 2003 Special Tax Bonds and to the Bond Purchase
Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is
delivered pursuant to and in satisfaction of Section 3( d)( 16) of the Bond Purchase Agreement. Capitalized
terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase
Agreement.
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certify the same as an authorized officer ofKB Homes Coastal, Inc., a California corporation
("KB Homes Coastal"), and the undersigned, on behalf of KB Homes Coastal, further certifies as follows:
I. (i) KB Homes Coastal is duly organized and validly existing under the laws of the
State of California, qualified to transact business in the State of California and has all requisite right,
power and authority to execute and deliver this Certificate, and to undertake all ofthe transactions
on its part described in the Preliminary Official Statement and contemplated by the Developer
Continuing Disclosure Agreement and (ii) KB Homes Coastal has all requisite right, power and
authority (x) to execute and deliver at Closing the Developer Continuing Disclosure Agreement (the
"Developer Continuing Disclosure Agreement") dated as of June 1,2003 by and between KB Homes
Coastal and U.S. Bank National Association, as Dissemination Agent and Fiscal Agent.
2. As set forth in the Preliminary Official Statement, certain property within the District
is held in the name ofKB Homes Coastal (herein the "Property"). The undersigned, on behalf ofKB
Homes Coastal, makes the representations herein with respect to such Property. Except as otherwise
described in the Preliminary Official Statement, KB Homes Coastal is, and KB Homes Coastal's
current expectation is thatKB Homes Coastal shall remain the party responsible for land use planning
and backbone infrastructure of the Property on behalf ofKB Homes Coastal. KB Homes Coastal has
not entered into an agreement for development or management of the Property by any entity other
than as described in the Preliminary Official Statement.
3. KB Homes Coastal has, or will have prior to the Closing, duly authorized execution
and delivery at the Closing of the Dcveloper Continuing Disclosure Agreement thereunder. KB
Homes Coastal is duly authorized to perform the obligations on its part to be performed. Except as
described in the Preliminary Official Statement with regard to previous undertakings relating to Rule
15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as
amended, KB Homes Coastal is not aware of any material failures within the past five years by KB
Homes Coastal, or its Affiliates to provide periodic continuing disclosure reports or notices of
B-1
material events with respect to community facilities districts or assessment districts in California.
"Affiliate" of another Person (as defined below) means (a) a Person directly or indirectly owning,
controlling, or holding with power to vote, 15% or more of the outstanding voting securities of such
other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person
directly or indirectly controlling, controlled by or under common control with such other Person; for
purposes hereof, control means the power to exercise a controlling influence over the management
or policies of a Person, unless such power is solely the result of an official position with such Person.
"Person" means an individual, a corporation, a partnership, an association, a joint stock company,
a trust, any unincorporated organization or a government or political subdivision thereof.
4. Except as disclosed in the Preliminary Official Statement, to the actual knowledge
ofthe undersigned, on behalf ofKB Homes Coastal (hereinafter "the actual knowledge ofKB Homes
Coastal") (a) KB Homes Coastal and its Affiliates are not in breach of or in default under any
applicable law or administrative regulation of the State of California or the United States, or any
agency or instrumentality of either, which breach or default would in any way materially and
adversely affect the proposed Developer Continuing Disclosure Agreement, or the ability of KB
Home Coastal to pay Special Taxes, (b) to the actual knowledge ofKB Homes Coastal, no event has
occurred and is continuing which with the passage of time or giving of notice, or both, would
constitute such a breach or default; and (c) to the actual knowledge of KB Homes Coastal, the
execution and delivery at Closing by KB Homes Coastal of the Developer Continuing Disclosure
Agreement, and compliance with the provisions thereof will not conflict with or constitute a breach
of or default under any law or administrative regulation applicable to KB Homes Coastal.
5. Except as disclosed in the Preliminary Official Statement, (a) to the actual
knowledge of KB Homes Coastal, KB Homes Coastal and its Affiliates are not in breach of or in
default under any applicable judgment or decree or any loan agreement, option agreement,
development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other
instrument to which KB Homes Coastal or its Affiliates are, or will upon issuance of the Bonds be,
a party or otherwise subject, which breach or default would in any way materially and adversely
affect the proposed Developer Continuing Disclosure Agreement, or KB Homes Coastal ability to
develop the Property or to pay the Special Taxes, (b) to the actual knowledge ofKB Homes Coastal,
no event has occurred and is continuing that with the passage of time or giving of notice, or both,
would constitute such a breach or default; and (c) to the actual knowledge of KB Homes Coastal, the
execution and delivery at Closing by KB Homes Coastal of the Developer Continuing Disclosure
Agreement and compliance with the provisions thereof will not conflict with or, constitute a breach of
or default under any judgment, decree, loan agreement, indenture, fiscal agent agreement, bond, note,
resolution, agreement or other instrument to which KB Homes Coastal and its Affiliates are a party or
otherwise subject which breach or default would in any way materially and adversely affect the
Developer Continuing Disclosure Agreement, or KB Homes Coastal's ability to develop the Property
or its ability to pay the Special Taxes.
6. Except as described in the Preliminary Official Statement, there are no material loans
outstanding and unpaid and no material lines of credit of KB Homes Coastal or its Affiliates that are
secured by an interest in the Property.
7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit, action,
or contingent liability litigation is pending (with service of process to KB Homes Coastal or any parent
entity of any such entity, having been accomplished) or, to the actual knowledge ofKB Homes Coastal,
threatened (a) to restrain or enjoin collection of Special Taxes or other sums pledged or to be pledged to
pay the principal of and interest on the Bonds, (b) to restrain or enjoin the execution of and performance
B-2
of KB Homes Coastal's obligations under the proposed Developer Continuing Disclosure Agreement"
(c) to restrain or enjoin development of the Property, (d) in any way contesting or affecting the validity
ofthe Special Taxes, the proposed Developer Continuing Disclosure Agreement, or any other document,
license, permit or approval necessary to the performance on KB Homes Coastal's part under the proposed
Developer Continuing Disclosure Agreement, or (e) which would in any way materially and adversely
affect KB Homes Coastal's ability to develop the Property or to pay Special Taxes.
8. Except as set forth in the Preliminary Official Statement, no litigation is pending (with
service of process to KB Homes Coastal or any Affiliate having been accomplished), or, to the actual
knowledge ofKB Homes Coastal, threatened against KB Homes Coastal or any Affiliate involving KB
Homes Coastal or any Affiliate, or any of the property or assets under the control of KB Homes Coastal
or any Affiliate that involves the possibility of any judgment or uninsured liability which may result in
any material adverse change in the assets or funds held by KB Homes Coastal or any Affiliate that would
materially and adversely affect KB Homes Coastal's ability to develop the Property or to pay Special
Taxes.
9. As of the date thereof, the Preliminary Official Statement, solely with respect to
information contained therein with respect to KB Homes Coastal and its Affiliates, the proposed
development of the Property, ownership of the Property and KB Homes Coastal's development plan, KB
Homes Coastal's fmancing plan, and KB Homes Coastal's lenders, ifany, and contractual arrangements
as set forth under the captions "INTRODUCTION - The Community Facilities District,"
"CONTINUING DISCLOSURE - Lennar Homes and KB Home Coastal," "THE COMMUNITY
FACILITIES DISTRICT" (except the subcaption "- Estimated Assessed Value-To-Lien Ratios") and
"BONDOWNERS' RISKS - Endangered and Threatened Species" and " - Hazardous Substances"
(excluding therefrom information which is identified to a source other than KB Homes Coastal, and the
information under the captions "THE COMMUNITY FACILITIES DISTRICT - Estimated Special Tax
Allocation by Property Ownership,"" - Transportation Uniform Mitigation Fee,"" - Estimated Assessed
Value-to-Lien Ratios,"" - Market Absorption Study," and "- Appraised Property Value"), is true and
correct in all material respects and did not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
10. KB Homes Coastal has full power and authority to own and develop the Property and
to carry on its business as presently conducted and as described in the Preliminary Official Statement.
II. KB Homes Coastal covenant that, while the Bonds or any refunding obligations related
thereto are outstanding, KB Homes Coastal and its Affiliates will not bring any action, suit, proceeding,
inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body,
that in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of
Ordinance No. TPF A 03-0 I (Crowne Hill) of the Authority levying Special Taxes within the District,
to invalidate the District or any ofthe Bonds, oTto invalidate the special tax liens imposed under Section
3115.5 of the Streets and Highways Code based on recordation of the notices of special tax lien relating
thereto. The foregoing covenant shall not prevent KB Homes Coastal in any way from bringing any
other action, suit or proceeding including, without limitation, an action or suit contending that the Special
Tax has not been levied in accordance with the methodologies contained in the District's Rate and
Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an action or
suit with respect to the application or use of the Special Taxes levied and collected, or an action or suit
to enforce the obligations of the Authority under the Resolution ofIssuance, the Fiscal Agent Agreement,
or any agreements between KB Homes Coastal, the Authority, the City and/or the District.
B-3
12. Except as disclosed in the Preliminary Official Statement, to the actual knowledge of
KB Homes Coastal after due inquiry, KB Homes Coastal is not aware that any other public debt secured
by a tax or assessment on the Property exists or is in the process of being authorized or any assessment
districts or community facilities districts have been or are in the process of being formed that include any
portion of the Property.
13. KB Homes Coastal and its parent entities have not previously defaulted in payment of,
and are not currently delinquent on, any ad valorem, assessment or special tax obligations in any
jurisdiction in any material amount.
14. KB Homes Coastal consents to the issuance of the Bonds. KB Homes Coastal
acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official
Statement.
15. KB Homes Coastal intends to comply with the provision ofGovemment Code Section
53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or portions
thereof.
16. KB Homes Coastal acknowledges that interest on the Bonds is estimated to be
capitalized through September I, 2003 and that the Special Tax levies on Developed Property will
commence in Fiscal Year 2003-04 (commencing with the December 1,2003 tax installment) in order to
pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the District.
17. KB Homes Coastal is solvent and no proceedings are pending or, to the actual
knowledge of KB Homes Coastal after due inquiry, threatened in which KB Homes Coastal may be
adjudicated as bankrupt or discharged from any and all of its debts or obligations or granted an extension
of time to pay its debts or obligations or a reorganization or readjustment of its debts or be subject to
control or supervision of the Federal Deposit Insurance Corporation.
18. The parent entities of KB Homes Coastal are solvent and no proceedings are pending,
or to the actual knowledge ofKB Homes Coastal after due inquiry, threatened in which the parent entities
of KB Homes Coastal may be adjudicated as bankrupt or discharged from any or all of its debts or
obligations, or granted an extension of time to pay its debt or obligations, or be allowed to reorganize or
readjust its debts or obligations or be subject to control or supervision of the Federal Deposit Insurance
Corporation.
19. KB Homes Coastal has not filed for, nor is KB Homes Coastal aware of, current
proceedings for the reassessment of the assessed value of the Property.
20. To the actual knowledge ofKB Homes Coastal after due inquiry, there are no claims,
disputes, suits, actions or contingent liabilities among, by and between KB Homes Coastal, its Affiliates
or any contractors working on the development of the Property which may materially and adversely
affect the development of the Property or the payment of the Special Taxes.
21. Based upon the current development plans, including, without limitation, the current
budget and subject to economic conditions and risks generally inherent in the development of real
property and KB Homes Coastal presently anticipates that it will have sufficient funds to carry on its
business as presently conducted and as described in the Preliminary Official Statement and to pay Special
Taxes assessed against the Property and do not anticipate that the Authority or the District will be
required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due
to KB Homes Coastal's nonpayment of Special Taxes. However, none of KB Homes Coastal or its
B-4
Affiliates are obligated to make any additional capital contribution or loan to KB Homes Coastal at any
time and KB Homes Coastal reserves the right to change its plan at any time without notice.
22. All information submitted in writing by, or on behalf of, KB Homes Coastal to the
Authority, the District, the Special Tax Consultant, Stephen G. White, MAl (the "Appraiser"), Disclosure
Counselor the Underwriter in connection with the issuance of the Bonds, was, at the time of submission,
to the actual knowledge of KB Homes Coastal after due inquiry, true and correct.
23. As to information indicated in Section 9 hereof concerning KB Homes Coastal, its
Affiliates and the development of the Property, and subject to the limitations and exclusions set forth in
Section 9, KB Homes Coastal agrees to indemnifY and hold harmless, to the extent pennitted by law, the
Authority, the District, and their officials and employees, and each person, if any, who controls any of
the foregoing within the meaning of Section 15 ofthe Securities Act of 1933, as amended, or of Section
20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims, damages or
liabilities, joint or several, to which such indemnified party may become subject under any statute or at
law or in equity or otherwise, and shall reimburse any such indemnified party for any reasonable legal
or other expense incurred by it in connection with investigating any claims against it and defending any
actions, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any
untrue statement of a material fact or the omission to state, in the final Official Statement, as of its date
or in any continuing disclosure statement provided by or on behalf ofKB Homes Coastal, a material fact
necessary to make the statement therein, in light of the circumstances under which it was made not
misleading. This indemnity provision shall not be construed as a limitation on any other liability which
KB Homes Coastal may otherwise have to any indemnified party, provided that in no event shall KB
Homes Coastal be obligated for double indemnification.
24. KB Homes Coastal has agreed to execute the Developer's Continuing Disclosure
Agreement in the form included in Appendix G to the Preliminary Official Statement.
25. Ifbelween the date hereof and the date of the Closing any event relating to or affecting
KB Homes Coastal, its Affiliates, or the development ofthe Property shall occur of which KB Homes
Coastal has actual knowledge which might or would cause the Official Statement, as then supplemented
or amcnded, to contain an untrue statement of a material fact or to omit to state a material fact required
to be stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading, KB Homes Coastal shall notifY the Authority, the District and
the Underwriter and if in the opinion of counsel to the Authority or the Underwriter such event requires
the preparation and publication of a supplement or amendment to the Official Statement, KB Homes
Coastal shall cooperate with the Authority in the preparation of an amendment or supplement to the
Official Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter.
26. For the "underwriting period," as defined in the Bond Purchase Agreement, if any event
relating to or affecting KB Homes Coastal, its Affiliates, or the development of the Property shall occur
as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to
amend or supplement the Official Statement in order to make the Official Statement not misleading in
the light of the circumstances existing at the time it is delivered to a purchaser, KB Homes Coastal shall
cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to
the Official Statement in form and substance satisfactory to the Underwriter and counsel to the Authority
which will amend or supplement the Official Statement so that it will not contain an untrue statement of
a material fact or omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not
misleading.
B-5
27. KB Homes Coastal agrees to deliver a Certificate dated the date of issuance of the Bonds
at the time of issuance of the Bonds in substantially the form attached as Exhibit A.
28. On behalfofKB Homes Coastal, I have reviewed the contents of this Certificate and
have met with counsel to KB Homes Coastal, for the purpose of discussing the meaning of its contents.
Dated: June ---' 2003
KB HOMES COASTAL, INC., a California corporation
By:
Name:
Title:
B-6
EXHIBIT B
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CERTIFICATE OF LENNAR COMMUNITIES, INC
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Temecula Public Financing Authority (the "Authority") Community
Facilities District No. 03-1 (Crowne Hill) (the "District") 2003 Special Tax Bonds and to the Bond Purchase
Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is
delivered pursuant to and in satisfaction of Section 3( d)(l6) ofthe Bond Purchase Agreement. Capitalized
terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase
Agreement. The Developer Continuing Disclosure Agreement (the "Developer Continuing Disclosure
Agreement") dated as of June 1,2003 by and between Lennar Homes, Inc., a California corporation ("Lennar
Homes") and U.S. Bank National Association, as Dissemination Agent and Fiscal Agent, the Acquisition
Agreement, dated as of March 1,2003, executed by and between the Authority and Lennar Homes (the
"Acquisition Agreement"), the Joint Community Facilities Agreement -RCWD (the "Joint Community
Facilities Agreement - RCWD"), dated as of March 1,2003 by and among the Temecula Public Financing
Authority, the Rancho California Water District ("RCWD") and Lennar Homes and the Joint Community
Facilities Agreement - EMWD (the "Joint Community Facilities Agreement - EMWD"), dated as of March
I, 2003 by and among the Temecula Public Financing Authority, Eastern Municipal Water District
("EMWD") and Lennar Homes are collectively referred to herein as the "Developer Agreements" and the
Joint Community Facilities Agreement - RCWD and the Joint Community Facilities Agreement - EMWD
are collectively referred to herein as the "Joint Community Facilities Agreements."
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certify the same as an authorized officer of Lennar Communities, Inc., a California
corporation ("LennarCommunities"), and the undersigned, on behalf ofLennar Communities further certifies
as follows:
I. (i) Lennar Communities is duly organized and validly existing under the laws ofthe
State of California and has all requisite corporate power and authority to execute and deliver this
Certificate, and to undertake all of the transactions on its part described in the Preliminary Official
Statement.
2. As set forth in the Preliminary Official Statement, certain property within the District
is owned by LENOne, Inc., a Virginia corporation ("LENOne") with whom the Lennar Entities (as
defined below) has entered into various agreements pursuant to which Greystone Homes, Inc., a
Delaware corporation ("Greystone Homes"), Lennar Homes, and U.S. Home, Inc., a California
corporation ("U.S. Home") (collectively, the "Lennar Entities") will acquire and develop such
property. In addition, as set forth in the Preliminary Official Statement, title to part of the property
within the District is held in the name ofPCC - Crowne Hill 100, LLC, a Delaware limited liability
company ("PCC 100"). Greystone Homes, is the non-member manager of PCC 100 and Lennar
B-1 -- Lennar Communities
Homes will act as the merchant builder entitled to develop the lots owned by PCC 100. The property
owned by LENOne, PCC 100 and Greystone Homes is referred to herein as the "Property." The
undersigned, on behalf ofLennar Communities, makes the representations herein with respect to such
Property. Except as otherwise described in the Preliminary Official Statement, the Lennar Entities
are, and Lennar Communities' current expectation is that the Lennar Entities shall remain the parties
responsible for land use plarming and backbone infrastructure of the Property on behalf of the Lennar
Entities. Lennar Communities has not entered into an agreement for development or management
of the Property by any entity other than as described in the Preliminary Official Statement.
3. Except as described in the Preliminary Official Statement with regard to previous
undertakings relating to Rule 15c2-12 of the Securities and Exchange Commission under the
Securities Exchange Act ofl934, as amended, to the Actual Knowledge ofthe Undersigned!, Lennar
Communities is not aware of any material failures within the past five years by the Lennar Entities,
their Affiliates or LEN One to provide periodic continuing disclosure reports or notices of material
events with respect to community facilities districts or assessment districts in California. As
described in the Preliminary Official Statement, Lennar Communities is reviewing and updating its
system for filing reports and expects to satisfy Lennar Communities' obligations, and Lennar
Communities expects to satisfy its obligations, with regard to disclosure in the future. "Affiliate" of
another Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or
holding with power to vote, 15% or more of the outstanding voting securities of such other Person,
(b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned,
controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly
controlling, controlled by or under common control with such other Person; for purposes hereof,
control means the power to exercise a controlling influence over the management or policies of a
Person, unless such power is solely the result of an official position with such Person. "Person"
means an individual, a corporation, a partnership, an association, ajoint stock company, a trust, any
unincorporated organization or a government or political subdivision thereof.
4. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
of the Undersigned (a) the Lennar Entities and their Affiliates are not in breach of or in default under
any applicable law or administrative regulation ofthe State of California or the United States, or any
agency or instrumentality of either, which breach or default would in any way materially and
adversely affect the proposed Developer Continuing Disclosure Agreement, the Acquisition
Agreement, the Joint Community Facilities Agreements, or the ability of the respective Lennar
Entities to pay Special Taxes under the Option Agreements (as defined in the Preliminary Official
Statement), (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing
which with the passage oftime or giving of notice, or both, would constitute such a breach or default.
5. Except as disclosed in the Preliminary Official Statement, (a) to the Actual
Knowledge of the Undersigned, the Lennar Entities and their Affiliates are not in breach of or in
default under any applicable judgment or decree or any loan agreement, option agreement,
development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other
instrument to which the Lennar Entities or their Affiliates are, or will upon issuance ofthe Bonds be,
a party or otherwise subject, which breach or default would in any way materially and adversely
! As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge
that the undersigned currently has or has obtained from an interview with such officers and responsible employees of
Leonar Communities as the undersigned has determined are likely, in the ordinary course of their respective duties,
to have knowledge of the matters set forth herein. With your permission, the undersigned has not conducted any
extraordinary inspection or inquiry other than such inspections or inquiries as are prudent and customary in
connection with the ordinary course of Lennar Home's business and operations.
B-2 -- Leunar Communities
affect the Lennar Entities ability to develop the Property or to pay the Special Taxes, and (b) to the
Actual Knowledge of the Undersigned, no event has occurred and is continuing that with the passage
of time or giving of notice, or both, would constitute such a breach or default.
6. Except as described in the Preliminary Official Statement, there are no material loans
outstanding and unpaid and no material lines of credit of Lennar Communities or its Affiliates that
are secured by an interest in the Property.
7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit,
action, or contingent liability litigation is pending (with service of process to Lennar Communities
having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened (a) to restrain
or enjoin collection of Special Taxes or other sums pledged or to be pledged to pay the principal of
and interest on the Bonds, (b) to restrain or enjoin the execution of and performance of Lennar
Homes' obligations underthe proposed Developer Continuing Disclosure Agreement, the Acquisition
Agreement or the Joint Community Facilities Agreements, (c) to restrain or enjoin development of
the Property, (d) in any way contesting or affecting the validity of the Special Taxes, the proposed
Developer Continuing Disclosure Agreement, the Acquisition Agreement, the Joint Community
Facilities Agreements or any other document, license, permit or approval necessary to the
performance on the Lennar Entities' part under the proposed Developer Continuing Disclosure
Agreement, the Acquisition Agreement or the Joint Community Facilities Agreements or (e) which
would in any way materially and adversely affect the Lennar Entities' ability to develop the Property
or to pay Special Taxes.
8. Except as set forth in the Preliminary Official Statement, no litigation is pending
(with service of process to Lennar Communities or any Affiliate having been accomplished), or, to
the Actual Knowledge of the Undersigned, threatened against the Lennar Entities or any Affiliate
involving the Lennar Entities or any Affiliate, or any of the property or assets under the control of
the Lennar Entities or any Affiliate that involves the possibility of any judgment or uninsured liability
which may result in any material adverse change in the assets or funds held by the Lennar Entities
or any Affiliate that would materially and adversely affect the Lennar Entities' ability to develop the
Property or to pay Special Taxes.
9. As of the date thereof, but solely with respect to information regarding Lennar
Entities, their Affiliates, and LENOne, the proposed development of the Property, ownership of the
Property and the Lennar Entities' development plan, the Lennar Entities' financing plan, LEN One,
the Lennar Entities' lenders, if any, and contractual arrangements involving the Lennar Entities and
subject to the exclusions set forth below, the information contained in the Preliminary Official
Statement under the captions "INTRODUCTION - The Community Facilities District," (excluding
therefrom the first two paragraphs for which no certification is made), "CONTINUING
DISCLOSURE - Lennar Homes and KB Home Coastal," and "THE COMMUNITY FACILITIES
DISTRICT" (excluding therefrom information under the subcaptions "Estimated Special Tax
Allocation by Property Ownership,"" - Direct and Overlapping Debt," Overlapping Assessment and
Community Facilities Districts," " -- Other Overlapping Direct Assessments," -- Transportation
Uniform Mitigation Fee," "-- "-- Estimated Assessed Value-To-Lien Ratios," "-- Market Absorption
Study," and "-- Appraised Property Value" for which no certification is made), is true and correct in
all material respects and did not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading.
B-3 -- Lennar Communities
10. Lennar Communities has full corporate power and authority to own and develop the
Property and to carry on its business as presently conducted and as described in the Preliminary
Official Statement.
II. Lennar Communities covenants that, while the Bonds or any refunding obligations
related thereto are outstanding, Lennar Communities will not bring any action, suit, proceeding,
inquiry or investigation at law or in equity, before any court, regulatory agency, public board or
body, that in any way seeks to challenge or overturn the formation of the District, to challenge the
adoption of Ordinance No. TPF A 03-01 (Crowne Hill) ofthe Authority levying Special Taxes within
the District, to invalidate the District or any of the Bonds, or to invalidate the special tax liens
imposed under Section 3115.5 of the Streets and Highways Code based on recordation of the notices
of special tax lien relating thereto. The foregoing covenant shall not prevent Lennar Communities
in any way from bringing any other action, suit or proceeding including, without limitation, an action
or suit contending that the Special Tax has not been levied in accordance with the methodologies
contained in the District's Rate and Method of Apportionment of Special Taxes pursuant to which
the Special Taxes are levied, an action or suit with respect to the application or use of the Special
Taxes levied and collected, or an action or suit to enforce the obligations of the Authority under the
Resolution of Issuance, the Fiscal Agent Agreement, the Acquisition Agreement, the Joint
Community Facilities Agreements or any agreements with the Authority, the City and/or the District
for which Lennar Communities is a party or beneficiary.
12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
of the Undersigned, Lennar Communities is not aware that any other public debt secured by a tax or
assessment on the Property exists or is in the process of being authorized or any assessment districts
or community facilities districts have been or are in the process of being formed that include any
portion of the Property.
13. Except as disclosed int eh Preliminary Official Statement, to the Actual Knowledge
of the Undersigned, Lennar Communities and its Affiliates have not in the last five years defaulted
in payment of, and are not currently delinquent on, any ad valorem, assessment or special tax
obligations in California in any material amount.
14. Lennar Communities consents to the issuance of the Bonds. Lennar Communities
acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official
Statement, provided that nothing in this statement modifies any right or obligation of the parties
under the Acquisition Agreement or the Joint Community Facilities Agreements.
15. Lennar Communities intends to comply with the provision of Govemment Code
Section 53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or
portions thereof that it takes title to or develops.
16. Lennar Communities acknowledges that interest on the Bonds is estimated to be
capitalized through September 1,2003 and that the Special Tax levies on Developed Property will
commence in Fiscal Year 2003-04 (commencing with the November 1,2003 tax installment) in order
to pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the
District.
17. Lennar Communities is solvent and no proceedings are pending or, to the Actual
Knowledge of the Undersigned, threatened in which Lennar Communities may be adjudicated as
bankrupt or discharged from any and all of its debts or obligations or granted an extension of time
to pay its debts or obligations or a reorganization or readjustment of its debts.
B-4 -- Lennar Communities
18. To the Actual Knowledge of the Undersigned, US Homes and Lennar Corporation,
a Delaware corporation ("Lennar Corporation"), are solvent and no proceedings are pending, or to
the Actual Knowledge of the Undersigned, threatened in which US Homes or Lennar Corporation
may be adjudicated as bankrupt or discharged from any or all of their respective debts or obligations,
or granted an extension of time to pay their respective debts or obligations, or be allowed to
reorganize or readjust their respective debts or obligations.
19. To the Actual Knowledge ofthe Undersigned, the Lennar Entities have not filed for,
nor is Lennar Communities aware of, current proceedings for the reassessment of the assessed value
of the Property.
20. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits,
actions or contingent liabilities among, by and between Lennar Communities, its Affiliates or any
contractors working on the development of the Property which may materially and adversely affect
the development of the Property or the payment of the Special Taxes on the Property.
21. Based upon the current development plans, including, without limitation, the current
budget and subject to economic conditions and risks generally inherent in the development of real
property, Lennar Communities presently anticipates that the Lennar Entities will have sufficient
funds to carry on their business as presently conducted and as described in the Preliminary Official
Statement and to pay Special Taxes assessed against the Property and does not anticipate that the
Authority or the District will be required to resort to a draw on the Reserve Fund for payment of
principal of or interest on the Bonds due to the Lennar Entities' nonpayment of Special Taxes.
However, none ofthe Lennar Entities or their Affiliates are obligated to make any additional capital
contribution or loan to the Lennar Entities at any time and the Lennar Entities reserve the right to
change their plan at any time without notice.
22. All information submitted in writing by, or on behalf of, Lennar Communities to the
Authority, the District, the Special Tax Consultant, Stephen G. White, MAl (the "Appraiser"),
Disclosure Counselor the Underwriter in connection with the issuance of the Bonds, was, at the time
of submission, to the Actual Knowledge of the Undersigned true and correct.
23. As to information indicated in Section 9 hereof concerning the Lennar Entities their
Affiliates and the development ofthe Property, and subject to the limitations and exclusions set forth
in Section 9, Lennar Communities agrees to indemnify and hold harmless, to the extent permitted by
law, the Authority, the District, and their officials and employees, and each person, if any, who
controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as
amended, or of Section 20 of the Securities Exchange Act of 1934, as amended against any and all
losses, claims, damages or liabilities, joint or several, to which such indemnified party may become
subject under any statute or at law or in equity or otherwise, and shall reimburse any such
indemnified party for any reasonable legal or other expense incurred by it in connection with
investigating any claims against it and defending any actions, insofar as such losses, claims, damages,
liabilities or actions arise out of or are based upon any untrue statement of a material fact or the
omission to state a material fact, in the final Official Statement, as of its date or in any continuing
disclosure statement, as of its date, provided by or on behalf of the Lennar Entities or LEN One, a
material fact necessary to make the statement therein, in light ofthe circumstances under which it was
made not misleading. This indemnity provision shall not be construed as a limitation on any other
liability which the Lennar Entities may otherwise have to any indemnified party, provided that in no
event shall Lennar Communities be obligated for double indemnification nor for the negligence or
wilful misconduct of another.
B-5 -- Lennar Communities
24. Ifbetween the date hereof and the date of the Closing, to the Actual Knowledge of
the Undersigned, any event relating to or affecting the Lennar Entities, their Affiliates, LENOne or
the development of the Property shall occur which might or would cause the Official Statement, as
then supplemented or amended, to contain an untrue statement of a material fact or to omit to state
a material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading, Lennar Communities shall notifY
the Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or
the Underwriter such event requires the preparation and publication of a supplement or amendment
to the Official Statement, Lennar Communities shall cooperate with the Authority in the preparation
of an amendment or supplement to the Official Statement in form and substance satisfactory to
counsel to the Authority and to the Underwriter.
25. For the "underwriting period," as defined in the Bond Purchase Agreement, if any
event relating to or affecting the Lennar Entities, their Affiliates, LEN One or the development ofthe
Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel
to the Authority, to amend or supplement the Official Statement in order to make the Official
Statement not misleading in the light of the circumstances existing at the time it is delivered to a
purchaser, Lennar Communities shall cooperate with the Authority and the Underwriter in the
preparation of an amendment or supplement to the Official Statement in form and substance
satisfactory to the Underwriter and counsel to the Authority which will amend or supplement the
Official Statement so that it will not contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances
existing at the time the Official Statement is delivered to a purchaser, not misleading.
26. Lennar Communities agrees to deliver a Certificate dated the date of issuance of the
Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit A.
27. On behalf of Lennar Communities, I have reviewed the contents of this Certificate
and have met with counsel to Lennar Communities, for the purpose of discussing the meaning of its
contents.
Dated: June
,2003
LENNAR COMMUNITIES, INC.,
a California corporation
By:
Name:
Title:
B-6 -- Lennar Communities
EXHIBIT B
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CERTIFICATE OF LENNAR HOMES OF CALIFORNIA, INC.
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Temecula Public Financing Authority (the "Authority")
Community Facilities District No. 03- I (Crowne Hill) (the "District") 2003 Special Tax Bonds and
to the Bond Purchase Agreement to be entered into in connection therewith (the "Bond Purchase
Agreement"). This certificate is delivered pursuant to and in satisfaction of Section 3( d)( 16) of the
Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the
meanings ascribed to them in the Bond Purchase Agreement.
The undersigned certifies that he is familiar with the facts herein certified and is
authorized and qualified to certifY the sarne as an authorized officer of Lennar Homes of California,
Inc., a California corporation ("Lennar Homes"), and the undersigned, on behalf of Lennar Hornes
further certifies as follows:
I. (i) Lennar Homes is duly organized and validly existing under the laws of the
State of California and has all requisite corporate power and authority to execute and deliver
this Certificate, and to undertake all of the transactions on its part described in the Preliminary
Official Statement and contemplated by the Developer Continuing Disclosure Agreement (the
"Developer Continuing Disclosure Agreement") dated as of June I, 2003 by and between
Lennar Homes and U.S. Bank National Association, as both Dissemination Agent and Fiscal
Agent and the Acquisition Agreement, dated as of March 1,2003, executed by and between
the Authority and Lennar Homes (the "Acquisition Agreement") and (ii) Lennar Homes has
all requisite corporate power and authority (x) to execttte and deliver at Closing the Developer
Continuing Disclosure Agreernent; (y) to execute and deliver the Acquisition Agreernent; (y)
to execute and deliver the Joint Community Facilities Agreement -RCWD (the "Joint
Community Facilities Agreernent - RCWD"), dated as of March 1,2003 by and among the
Temecula Public Financing Authority, the Rancho California Water District ("RCWD") and
Lennar Homes, and (z) to execute and deliver the Joint Community Facilities Agreement -
EMWD (the "Joint Cornrnunity Facilities Agreement - EMWD"), dated as of March 1,2003
by and among the Temecula Public Financing Authority, Eastern Municipal Water District
("EMWD") and Lennar Hornes (the Developer Continuing Disclosure Agreement, the
Acquisition Agreement, the Joint Community Facilities Agreernent - RCWD and the Joint
Community Facilities Agreement - EMWD are collectively referred to herein as the
"Developer Agreements" and the Joint Community Facilities Agreement - RCWD and the
B-1 -- Lennar Homes
Joint Community Facilities Agreement - EMWD are collectively referred to herein as the
"Joint Community Facilities Agreements").
2. As set forth in the Prelirninary Official Statement, certain property within the
District is owned by LENOne, Inc., a Virginia corporation ("LEN One") with whom Lennar
Homes has entered into various agreements with Lennar Homes, Lennar Communities, Inc.,
a California corporation ("Lennar Cornmunities"), and Greystone Homes, Inc., a Delaware
corporation ("Greystone Homes") and Lennar Homes, Greystone Hornes, U.S. Home, Inc.,
a California corporation ("U.S. Home") will acquire and develop such property. Lennar
Homes, Lennar Communities, Greystone Homes, and U.S. Homes are collectively referred
to herein as the "Lennar Entities." In addition, as set forth in the Prelirninary Official
Statement, title to part ofthe property within the District is held in the name ofPCC - Crowne
Hill 100, LLC, a Delaware limited liability company ("PCC 100"). Greystone Homes, is a
member ofPCC 100 and Greystone Homes will act as the rnerchant builder entitled to develop
the lots owned by PCC 100. The property owned by LENOne, PCC 100 and Greystone
Homes is referred to herein as the "Property." The undersigned, on behalf ofLennar Homes,
makes the representations herein with respect to such Property. Except as otherwise described
in the Preliminary Official Statement, the Lennar Entities are, and Lennar Homes' current
expectation is that, the Lennar Entities shall remain the parties responsible for land use
planning and backbone infrastructure of the Property on behalf ofthe Lennar Entities. Lennar
Hornes has not entered into an agreement for development or rnanagernent ofthe Property by
any entity other than as described in the Preliminary Official Statement.
3. Lennar Homes has, or will have prior to Closing, duly authorized the execution
and delivery of the Acquisition Agreement and the Joint Community Facilities Agreernents
and has, or will have prior to the Closing, duly authorized execution and delivery at the
Closing of the Developer Continuing Disclosure Agreement thereunder. Lennar Hornes is
duly authorized to perform the obligations on its part to be performed. Except as described
in the Preliminary Official Statement with regard to previous undertakings relating to Rule
15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended, to the Actual Knowledge of the Undersignedl, Lennar Homes is not aware
of any material failures within the past five years by the Lennar Entities or their Affiliates to
provide periodic continuing disclosure reports or notices of material events with respect to
community facilities districts or assessment districts in California. "Affiliate" of another
Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or
holding with power to vote, 15% or rnore of the outstanding voting securities of such other
Person, (b) any Person 15% or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held with power to vote, by such other Person, and (c) any
Person directly or indirectly controlling, controlled by or under common control with such
other Person; for purposes hereof, control means the power to exercise a controlling influence
I As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge
that the undersigned currently has or has obtained from an interview with such officers and responsible employees of
Leonar Homes as the undersigned has determined are likely, in the ordinary course of their respective duties, to have
knowledge of the matters set forth herein. With your permission, the undersigned has not conducted any
extraordinary inspection or inquiry other than such inspections or inquiries as are prudent and customary in
connection with the ordinary course ofLennar Home's business and operations.
B-2 -- Lennar Homes
over the management or policies of a Person, unless such power is solely the result of an
official position with such Person. "Person" means an individual, a corporation, a partnership,
an association, a joint stock company, a trust, any unincorporated organization or a
government or political subdivision thereof.
4. Except as disclosed in the Prelirninary Official Statement, to the Actual
Knowledge of the Undersigned (a) the Lennar Entities and their Affiliates are not in breach
of or in default under any applicable law or administrative regulation ofthe State of Cali fomi a
or the United States, or any agency or instrumentality of either, which breach or default would
in any way materially and adversely affect the proposed Developer Continuing Disclosure
Agreernent, the Acquisition Agreement, the Joint Community Facilities Agreements, or the
ability of the respective Lennar Entities to pay Special Taxes under the Option Agreements
(as defined in the Prelirninary Official Statement), (b) to the Actual Knowledge of the
Undersigned, no event has occurred and is continuing which with the passage of time or
giving of notice, or both, would constitute such a breach or default; and (c) to the Actual
Knowledge of the Undersigned, the execution and delivery at Closing by Lennar Hornes of
the Developer Continuing Disclosure Agreement, and compliance with the provisions thereof
and compliance with the provisions of the Acquisition Agreement and the Joint Community
Facilities Agreements will not conflict with or constitute a breach of or default under any law
or administrative regulation applicable to Lennar Homes.
5. Except as disclosed in the Preliminary Official Statement, (a) to the Actual
Knowledge of the Undersigned, the Lennar Entities and their Affiliates are not in breach of
or in default under any applicable judgrnent or decree or any loan agreement, option
agreement, developrnent agreement, indenture, fiscal agent agreement, bond, note, resolution,
agreement or other instrument to which the Lennar Entities or their Affiliates are, or will upon
issuance of the Bonds be, a party or otherwise subject, which breach or default would in any
way materially and adversely affect the proposed Developer Continuing Disclosure
Agreement, the Acquisition Agreernent or the Joint Community Facilities Agreements, or the
Lennar Entities ability to develop the Property or to pay the Special Taxes, (b) to the Actual
Knowledge of the Undersigned, no event has occurred and is continuing that with the passage
of time or giving of notice, or both, would constitute such a breach or default; and (c) to the
Actual Knowledge of the Undersigned, the execution and delivery at Closing by Lennar
Homes of the Developer Continuing Disclosure Agreement and compliance with the provisions
thereof and of the Acquisition Agreement and the Joint Community Facilities Agreernents will
not conflict with or, constitute a breach of or default under any judgment, decree, loan agreement,
indenture, fiscal agent agreement, bond, note, resolution, agreernent or other instrument to which
the Lennar Entities and their Affiliates are a party or otherwise subject which breach or default
would in any way materially and adversely affect the Developer Continuing Disclosure
Agreement, the Acquisition Agreement, the Joint Community Facilities Agreements or the Lennar
Entities' ability to develop the Property or their ability to pay the Special Taxes.
6. Except as described in the Preliminary Official Statement, there are no material
loans outstanding and unpaid and no material lines of credit ofLennar Homes or its Affiliates that
are secured by an interest in the Property.
B-3 -- Lennar Homes
7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit,
action, or contingent liability litigation is pending (with service of process to Lennar Homes
having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened (a) to
restrain or enjoin collection of Special Taxes or other surns pledged or to be pledged to pay the
principal of and interest on the Bonds, (b) to restrain or enjoin the execution of and performance
ofLennar Homes' obligations under the proposed Developer Continuing Disclosure Agreement,
the Acquisition Agreement or the Joint Community Facilities Agreements, ( c) to restrain or enjoin
development of the Property, (d) in any way contesting or affecting the validity of the Special
Taxes, the proposed Developer Continuing Disclosure Agreernent, the Acquisition Agreement,
the Joint Community Facilities Agreements or any other docurnent, license, permit or approval
necessary to the performance on the Lennar Entities' part under the proposed Developer
Continuing Disclosure Agreement, the Acquisition Agreement or the Joint Community Facilities
Agreements or ( e) which would in any way materially and adversely affect the Lennar Entities'
ability to develop the Property or to pay Special Taxes.
8. Except as set forth in the Preliminary Official Statement, no litigation is pending
(with service of process to Lennar Homes or any Affiliate having been accomplished), or, to the
Actual Knowledge of the Undersigned, threatened against the Lennar Entities or any Affiliate
involving the Lennar Entities or any Affiliate, or any of the property or assets under the control
of the Lennar Entities or any Affiliate that involves the possibility of any judgment or uninsured
liability which rnay result in any material adverse change in the assets or funds held by the Lennar
Entities or any Affiliate that would materially and adversely affect the Lennar Entities' ability to
develop the Property or to pay Special Taxes.
9. As of the date thereof, but solely with respectto information regarding the Lennar
Entities, their Affiliates, and LENOne, the proposed development of the Property, ownership of
the Property and the Lennar Entities' development plan, the Lennar Entities' fmancing plan,
LENOne, the Lennar Entities' lenders, if any, and contractual arrangements involving the Lennar
Entities and subject to the exclusions set forth below, the information contained in the Preliminary
Official Statement under the captions "INTRODUCTION - The Community Facilities District,"
(excluding therefrom the first two paragraphs for which no certification is made),
"CONTINUING DISCLOSURE - Lennar Homes and KB Home Coastal," and "THE
COMMUNITY FACILITIES DISTRICT" (excluding therefrom information under the
subcaptions "Estimated Special Tax Allocation by Property Ownership," " - Direct and
Overlapping Debt," Overlapping Assessment and Community Facilities Districts," " - Other
Overlapping Direct Assessments," - Transportation Uniform Mitigation Fee," "- "- Estimated
Assessed Value-To-Lien Ratios," "- Market Absorption Study," and "- Appraised Property
Value" for which no certification is rnade), is true and correct in all material respects and did not
contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading.
10. Lennar Homes has full corporate power and authority to develop the Property and
to carry on its business as presently conducted and as described in the Prelirninary Official
Statement.
B-4 -- Lennar Homes
I I. Lennar Homes covenants that, while the Bonds or any refunding obligations
related thereto are outstanding, Lennar Homes will not bring any action, suit, proceeding, inquiry
or investigation at law or in equity, before any court, regulatory agency, public board or body,
that in any way seeks to challenge or overturn the formation of the District, to challenge the
adoption of Ordinance No. TPFA 03-01 (Crowne Hill) of the Authority levying Special Taxes
within the District, to invalidate the District or any of the Bonds, or to invalidate the special tax
liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation of
the notices of special tax lien relating thereto. The foregoing covenant shall not prevent Lennar
Homes in any way from bringing any other action, suit or proceeding including, without
limitation, an action or suit contending that the Special Tax has not been levied in accordance
with the methodologies contained in the District's Rate and Method of Apportionment of Special
Taxes pursuant to which the Special Taxes are levied, an action or suit with respect to the
application or use of the Special Taxes levied and collected, or an action or suit to enforce the
obligations of the Authority under the Resolution ofIssuance, the Fiscal Agent Agreernent, the
Acquisition Agreement, the Joint Community Facilities Agreements or any agreements with the
Authority, the City and/or the District for which Lennar Homes is a party or beneficiary.
12. Except as disclosed in the Preliminary Official Statement, to the Actual
Knowledge of the Undersigned, Lennar Homes is not aware that any other public debt secured
by a tax or assessment on the Property exists or is in the process of being authorized or any
assessment districts or community facilities districts have been or are in the process of being
formed that include any portion of the Property.
13. Except as disclosed in the Preliminary Official Statement, to the Actual
Knowledge of the Undersigned, Lennar Hornes and its Affiliates have not in the last five years
defaulted in payment of, and are not currently delinquent on, any ad valorem, assessment or
special tax obligations in California in any material amount.
14. Lennar Homes consents to the issuance of the Bonds. Lennar Homes
acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official
Statement, provided that nothing in this statement modifies any right or obligation of the parties
under the Acquisition Agreement or the Joint Community Facilities Agreements.
15. Lennar Homes intends to comply with the provision of Government Code Section
53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or
portions thereof that Lennar Homes takes title to or develops.
16. Lennar Hornes acknowledges that interest on the Bonds is estimated to be
capitalized through September I, 2003 and that the Special Tax levies on Developed Property will
commence in Fiscal Year 2003-04 (commencing with the November I, 2003 tax installment) in
order to pay for interest on the Bonds and to pay a portion of the administrative expenses relating
to the District.
17. Lennar Homes is solvent and no proceedings are pending or, to the Actual
Knowledge of the Undersigned, threatened in which Lennar Homes may be adjudicated as
bankrupt or discharged from any and all of its debts or obligations or granted an extension oftime
to pay its debts or obligations or a reorganization or readjustment of its debts.
B-5 -- Lennar Homes
18. To the Actual Knowledge of the Undersigned, LennarHomes Inc., a
corporation ("Lennar Homes Inc.") and Lennar Corporation, a Delaware corporation ("Lennar
Corporation"), are solvent and no proceedings are pending, or to the Actual Knowledge of the
Undersigned, threatened in which Lennar Homes Inc. or Lennar Corporation may be adjudicated
as bankrupt or discharged frorn any or all of their respective debts or obligations, or granted an
extension of time to pay their respective debts or obligations, or be allowed to reorganize or
readjust their respective debts or obligations.
19. To the Actual Knowledge of the Undersigned, the Lennar Entities have not filed
for, nor is Lennar Homes aware of, current proceedings for the reassessment of the assessed value
of the Property.
20. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits,
actions or contingent liabilities among, by and between Lennar Homes, its Affiliates or any
contractors working on the development of the Property which may materially and adversely
affect the development of the Property or the payment of the Special Taxes on the Property.
21. Based upon the current development plans, including, without limitation, the
current budget and subject to economic conditions and risks generally inherent in the
development of real property, Lennar Homes presently anticipates that the Lennar Entities will
have sufficient funds to carry on their business as presently conducted and as described in the
Preliminary Official Statement and to pay Special Taxes assessed against the Property and does
not anticipate that the Authority or the District will be required to resort to a draw on the Reserve
Fund for payment of principal of or interest on the Bonds due to the Lennar Entities' nonpayment
of Special Taxes. However, none of the Lennar Entities or their Affiliates are obligated to rnake
any additional capital contribution or loan to the Lennar Entities at any time and the Lennar
Entities reserve the right to change their plan at any time without notice.
22. All information submitted in writing by, or on behalf of, Lennar Homes to the
Authority, the District, the Special Tax Consultant, Stephen G. White, MAl (the "Appraiser"),
Disclosure Counselor the Underwriter in connection with the issuance of the Bonds, was, at the
time of submission, to the Actual Knowledge of the Undersigned true and correct.
23. As to information indicated in Section 9 hereof concerning the Lennar Entities
their Affiliates and the development of the Property, and subjectto the limitations and exclusions
set forth in Section 9, Lennar Homes agrees to indemnifY and hold harmless, to the extent
permitted by law, the Authority, the District, and their officials and employees, and each person,
if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act
of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended
against any and all losses, clairns, damages or liabilities, joint or several, to which such
indemnified party may become subject under any statute or at law or in equity or otherwise, and
shall reimburse any such indemnified party for any reasonable legal or other expense incurred by
it in connection with investigating any claims against it and defending any actions, insofar as such
losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement
of a material fact or the omission to state a material fact, in the final Official Statement, as of its
date or in any continuing disclosure statement, as of its date, provided by or on behalf of the
Lennar Entities or LENOne, a material fact necessary to make the statement therein, in light of
B-6 -- Lennar Homes
the circumstances undef which it was rnade not misleading. This indemnity provision shall not
be construed as a limitation on any othef liability which the Lennar Entities rnay otherwise have
to any indemnified party, provided that in no event shall Lennar Homes be obligated for double
indemnification nor for the negligence or wilful misconduct of another.
24. Lennar Homes has agreed to execute the Developer's Continuing Disclosufe
Agreement in the form included in Appendix G to the Preliminary Official Statement.
25. Ifbetween the date hefeof and the date of the Closing, to the Actual Knowledge
of the Undersigned, any event relating to or affecting the Lennar Entities, their Affiliates,
LENOne Of the development of the Property shall occur which might or would cause the Official
Statement, as then supplemented or amended, to contain an untrue statement of a material fact or
to omit to state a material fact required to be stated thefein or necessary to make the statements
therein, in the light of the circumstances under which they were rnade, not misleading, Lennar
Homes shall notify the Authority, the District and the Underwriter and ifin the opinion of counsel
to the Authority or the Underwriter such event requires the preparation and publication of a
supplement or amendment to the Official Statement, Lennar Hornes shall cooperate with the
Authority in the preparation of an amendment or supplernent to the Official Statement in form
and substance satisfactory to counsel to the Authority and to the Underwriter.
26. F or the "underwriting period," as defined in the Bond Purchase Agreement, if any
event relating to or affecting the Lennar Entities, their Affiliates, LENOne Of the development
of the Property shall occur as a fesult of which it is necessary, in the opinion of the Underwriter
or counsel to the Authority, to amend or supplement the Official Statement in order to make the
Official Statement not rnisleading in the light of the circumstances existing at the time it is
delivered to a purchaser, Lennar Homes shall cooperate with the Authority and the Underwriter
in the preparation of an amendment or supplement to the Official Statement in form and substance
satisfactory to the Underwritef and counsel to the Authority which will amend or supplement the
Official Statement so that it will not contain an untrue statement of a material fact or ornit to state
a material fact necessary in order to rnake the statements therein, in the light of the circumstances
existing at the time the Official Statement is delivered to a purchaser, not misleading.
27. Lennar Homes agrees to deliver a Certificate dated the date of issuance of the
Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit A.
28. On behalf ofLennar Homes, I have reviewed the contents of this Certificate and
have met with counsel to Lennar Homes, for the purpose of discussing the meaning of its
contents.
Dated: June _, 2003
LENNAR HOMES OF CALIFORNIA, INe.,
a California corporation
By:
B- 7 -- Lennar Homes
Name:
Title:
B-8 -- Lennar Homes
EXHIBIT B
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CERTIFICATE OF PCC III - CROWNE HILL 100, LLC
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Temecula Public Financing Authority (the "Authority") Community
Facilities District No. 03-1 (Crowne Hill) (the "District") 2003 Special Tax Bonds and to the Bond Purchase
Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is
delivered pursuant to and in satisfaction of Section 3( d)( 16) of the Bond Purchase Agreement. Capitalized
terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase
Agreement.
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certify the same as an authorized officer of Greystone Homes, Inc., a Delaware corporation
("Greystone Homes") as the Administrative Member ofPCC III - Crowne Hill I 00, LLC, a Delaware limited
liability company ("PCC I 00"), and the undersigned, on behalf of PCC 100, further certifies as follows:
I. PCC 100 is duly organized and validly existing under the laws of the State of
Delaware, qualified to transact business in the State of California and has all requisite limited liability
company power and authority to execute and deliver this Certificate, and to undertake all of the
transactions on its part described in the Preliminary Official Statement
2. As set forth in the Preliminary Official Statement, title to part ofthe property within the
District is held in the name of PCC 100. Greystone Homes is a member of PCC 100, and Lennar
Homes will act as the merchant builder entitled to develop the lots owned by PCC 100. The property
owned by PCC 100 is referred to herein as the "Property." The undersigned, on behalf ofPCC 100,
makes the representations herein with respect to such Property. Except as otherwise described in the
Preliminary Official Statement, PCC 100 current expectation is that the Lennar Entities shall remain
the parties responsible for land use planning and backbone infrastructure of the Property on behalf
of PCC 100. PCC 100 has not entered into an agreement for development or management of the
Property by any entity other than Lennar Homes as described in the Preliminary Official Statement.
3. Except as described in the Preliminary Official Statement, PCC 100 and its Affiliates
have not previously failed to comply with any obligations imposed upon it under Rule 15c2-12 of
the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
"Affiliate" of another Person (as defined below) means (a) a Person directly or indirectly owning,
controlling, or holding with power to vote, 15% or more of the outstanding voting securities of such
other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person
directly or indirectly controlling, controlled by or under common control with such other Person; for
purposes hereof, control means the power to excrcise a controlling influence over the management
B-1 -- PCC 100
or policies of a Person, unless such power is solely the result of an official position with such Person.
"Person" means an individual, a corporation, a partnership, an association, a joint stock company,
a trust, any unincorporated organization or a government or political subdivision thereof.
4. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
of the Undersigned', on behalf ofPCC 100 (a) PCC 100 and its Affiliates are not in breach of or in
default under any applicable law or administrative regulation of the State of California or the United
States, or any agency or instrumentality of either, which breach or default would in any way
materially and adversely affect the ability ofPCC 100 to pay Special Taxes due with respect to the
Property, (b) to the Actual Knowledge ofthe Undersigned, no event has occurred and is continuing
which with the passage oftime or giving of notice, or both, would constitute such a breach or default.
5. Except as disclosed in the Preliminary Official Statement, (a) to the Actual
Knowledge of the Undersigned, PCC 100 and its Affiliates are not in breach of or in default under
any applicable judgment or decree or any loan agreement, option agreement, development agreement,
indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which
PCC 100 or its Affiliates are, or will upon issuance of the Bonds be, a party or otherwise subject,
which breach or default would in any way materially and adversely affect PCC 1000s ability to
develop the Property or to pay the Special Taxes, and (b) to the Actual Knowledge of the
Undersigned, no event has occurred and is continuing that with the passage of time or giving of
notice, or both, would constitute such a breach or default.
6. Except as described in the Preliminary Official Statement, there are no material loans
outstanding and unpaid and no material lines of credit of PCC 100 that are secured by an interest in
the Property.
7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit,
action, or contingent liability litigation is pending (with service of process to PCC 100 having been
accomplished) or, to the Actual Knowledge of the Undersigned, threatened (a) to restrain or enjoin
collection of Special Taxes or other sums pledged or to be pledged to pay the principal of and interest
on the Bonds, (b) to restrain or enjoin development of the Property, (c) in any way contesting or
affecting the validity of the Special Taxes or (d) which would in any way materially and adversely
affect PCC 100's ability to develop the Property or to pay Special Taxes.
8. Except as set forth in the Preliminary Official Statement, no litigation is pending
(with service of process to PCC 100 having been accomplished), or, to the Actttal Knowledge of the
Undersigned, threatened against PCC 100 or any Affiliate involving PCC 100, or any ofthe property
or assets under the control ofPCC 100 or any Affiliate that involves the possibility of any judgment
or uninsured liability which may result in any material adverse change in the assets or funds held by
PCC 100 that would materially and adversely affect PCC I OO's ability to develop the Property or to
pay Special Taxes.
, As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge
that the undersigned currently has or has obtained from an interview with such officers and responsible employees of
Greystone Homes as the undersigned has determined are likely, in the ordinary course oftheir respective duties, to
have knowledge of the matters set forth herein. With your permission, the undersigned has not conducted any
extraordinary inspection or inquiry other than such inspections or inquiries as are prudent and customary in
connection with the ordinary course of Lennar Home's business and operations.
B-2 -- PCC 100
9. As of the date thereof, but solely withrespectto information regarding PCC 100 and
its Affiliates, the proposed development of the Property, ownership of the Property, PCC 100's
development plan, PCC 1000s financing plan, PCC 100's lenders, if any, and contractual
arrangements involving PCC 100, and subject to the exclusions set forth below, the information
contained in the Preliminary Official Statement under the captions "INTRODUCTION - The
Community Facilities District," (excluding therefrom the first two paragraphs for which no
certification is made) and "THE COMMUNITY FACILITIES DISTRICT" (excluding therefrom
information under the subcaptions "Estimated Special Tax Allocation by Property Ownership,""-
Direct and Overlapping Debt," Overlapping Assessment and Community Facilities Districts," "-
Other Overlapping Direct Assessments," - Transportation Uniform Mitigation Fee," "- "- Estimated
Assessed Value-To-Lien Ratios," "- Market Absorption Study," and "- Appraised Property Value"
for which no certification is made), is true and correct in all material respects and did not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.
10. PCC 100 has full limited liability company power and authority to own and develop
the Property and to carry on its business as presently conducted and as described in the Preliminary
Official Statement.
II. PCC 100 covenants that, while the Bonds or any refunding obligations related
thereto are outstanding, PCC 100 will not bring any action, suit, proceeding, inquiry or investigation
at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks
to challenge or overturn the formation of the District, to challenge the adoption of Ordinance No.
TPF A 03-01 (Crowne Hill) of the Authority levying Special Taxes within the District, to invalidate
the District or any of the Bonds, or to invalidate the special tax liens imposed under Section 3115.5
of the Streets and Highways Code based on recordation of the notices of special tax lien relating
thereto. The foregoing covenant shall not prevent PCC 100 in any way from bringing any other
action, suit or proceeding including, without limitation, an action or suit contending that the Special
Tax has not been levied in accordance with the methodologies contained in the District's Rate and
Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an action
or suit with respect to the application or use of the Special Taxes levied and collected, or an action
or suit to enforce the obligations ofthe Authority under the Resolution ofIssuance, the Fiscal Agent
Agreement or any agreements with the Authority, the City and/or the District and any party
(including PCC 100) for which PCC 100 is a party or beneficiary.
12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
ofthe Undersigned, PCC 100 is not aware that any other public debt secured by a tax or assessment
on the Property exists or is in the process of being authorized or any assessment districts or
community facilities districts have been or are in the process of being formed that include any portion
of the Property.
13. Except as disclosued in the Preliminary Official Statement, to the Actual Knowledge
ofthe Undersigned, PCC 100 and its Affiliates have not in the last five years defaulted in payment
of, and are not currently delinquent on, any ad valorem, assessment or special tax obligations in
California in any material amount; provided, however, that no representation is made as to past
delinquencies by Pacific Century Homes, Inc, a California corporation and its Affiliates.
14. PCC 100 consents to the issuance of the Bonds. PCC 100 acknowledges and agrees
that the proceeds of the Bonds will be used as described in the Official Statement.
B-3 -- PCC 100
15. PCC 100 intends to comply with the provision of Government Code Section 53341.5
relating to the Notice of Special Tax in connection with the sale ofthe Property, or portions thereof
that it takes title to or develops.
16. PCC 100 acknowledges that intefest on the Bonds is estimated to be capitalized
through September I, 2003 and that the Special Tax levies on Developed Property will commence
in Fiscal Year 2003-04 (commencing with the November I, 2003 tax installment) in order to pay for
interest on the Bonds and to pay a portion of the administrative expenses relating to the District.
17. PCC 100 is solvent and no proceedings are pending or, to the Actual Knowledge of
the Undersigned, threatened in which PCC 100 may be adjudicated as bankrupt or discharged from
any and all of its debts or obligations or granted an extension of time to pay its debts or obligations
Of a reorganization or readjustment of its debts.
18. To the Actual Knowledge of the Undersigned, the members ofPCC 100 are solvent
and no proceedings are pending, or to the Actual Knowledge of the Undersigned, threatened in which
the members of PCC 100, may be adjudicated as bankrupt or discharged from any or all of their
respective debts Of obligations, or granted an extension of time to pay their respective debts or
obligations, or be allowed to reorganize or readjust their respective debts or obligations.
19. To the Actual Knowledge of the Undersigned, PCC 100 has not filed for, nor is PCC
100 aware of, current proceedings for the reassessment of the assessed value of the Property.
20. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits,
actions or contingent liabilities among, by and between PCC 100, its Affiliates or any contractors
working on the development of the Property which may materially and adversely affect the
development of the Property or the payment of the Special Taxes on its Property.
21. Based upon the current development plans, including, without limitation, the current
budget and subject to economic conditions and risks generally inherent in the development of real
property, PCC 100 presently anticipates that it will have sufficient funds to carry on its business as
presently conducted and as described in the Preliminary Official Statement and to pay Special Taxes
assessed against the Property and does not anticipate that the Authority or the District will be
required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds
due to PCC 1000s nonpayment of Special Taxes. However, PCC 100 and its Affiliates are not
obligated to make any additional capital contribution or loan to PCC 100 at any time and PCC 100
reserves the right to change its plan at any time without notice.
22. All information submitted in writing by, or on behalf of, PCC 100 to the Authority,
the District, the Special Tax Consultant, Stephen G. White, MAl (the "Appraiser"), Disclosure
Counselor the Underwriter in connection with the issuance of the Bonds, was, at the time of
submission, to the Actual Knowledge of the Undersigned, true and correct.
23. As to information indicated in Section 9 hereof concerning PCC 100 and its
Affiliates and the development of the Property, and subject to the limitations and exclusions set forth
in Section 9, PCC 100 agrees to indemnify and hold hannless, to the extent permitted by law, the
Authority, the District, and their officials and employees, and each person, if any, who controls any
of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of
Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims,
damages or liabilities, joint or several, to which such indemnified party may become subject under
any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for
B-4 -- PCC 100
any reasonable legal or other expense incurred by it in connection with investigating any claims against
it and defending any actions, insofar as such losses, claims, damages, liabilities or actions arise out of or
are based upon any untrue statement of a material fact or the omission to state a material fact, in the fmal
Official Statement, as of its date or in any continuing disclosure statement as of its date, provided by or
on behalf of PCC 100, a material fact necessary to make the statement therein, in light of the
circumstances under which it was made not misleading. This indemnity provision shall not be construed
as a limitation on any other liability which PCC 100 may otherwise have to any indemnified party,
provided that in no event shall PCC 100 be obligated for double indemnification nor for the negligence
or wilful misconduct of another.
24. Ifbetween the date hereof and the date ofthe Closing, to the Actual Knowledge of the
Undersigned, any event relating to or affecting PCC 100, its Affiliates or the development of the Property
shall occur which might or would cause the Official Statement, as then supplemented or amended, to
contain an untrue statement of a material fact or to omit to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, PCC 100 shall notify the Authority, the District and the Underwriter and if
in the opinion of counsel to the Authority or the Underwriter such event requires the preparation and
publication of a supplement or amendment to the Official Statement, PCC 100 shall cooperate with the
Authority in the preparation of an amendment or supplement to the Official Statement in form and
substance satisfactory to counsel to the Authority and to the Underwriter.
25. For the "underwriting period," as defined in the Bond Purchase Agreement, if any event
relating to or affecting the PCC 100, its Affiliates or the development of the Property shall occur as a
result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to amend
or supplement the Official Statement in order to make the Official Statement not misleading in the light
of the circumstances existing at the time it is delivered to a purchaser, PCC 100 shall cooperate with the
Authority and the Underwriter in the preparation of an amendment or supplement to the Official
Statement in form and substance satisfactory to the Underwriter and counsel to the Authority which will
amend or supplement the Official Statement so that it will not contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in the light of the
circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading.
26. PCC 100 agrees to deliver a Certificate dated the date of issuance of the Bonds at the
time of issuance of the Bonds in substantially the form attached as Exhibit A.
27. On behalf of PCC 100, I have reviewed the contents of this Certificate and have met
with counsel to PCC 100, for the purpose of discussing the meaning of its contents.
Dated: June _' 2003
PCC III - CROWNE HILL 100, LLC,
a Delaware limited liability company
By: GREYSTONE HOMES, INC.,
a California corporation
Its: Administrative Member
By:
Name:
Title:
B-5 -- PCC 100
EXHIBIT B
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
SPECIAL TAX BONDS, SERIES 2003-A
CERTIFICATE OF PCC III
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Temecula Public Financing Authority (the "Authority") Community
Facilities District No. 03-1 (Crowne Hill) (the "District") Special Tax Bonds, Series 2003-A and to the Bond
Purchase Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This
certificate is delivered pursuant to and in satisfaction of Section 3(d)(16) of the Bond Purchase Agreement.
Capitalized terms used herein and not otherwise defmed have the meanings ascribed to them in the Bond
Purchase Agreement.
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certify the same as an authorized officer of Pacific Century Homes, Inc., a California
corporation ("Pacific Century Homes") as the Administrative Member of PCC III - Crowne Hill LLC, a
Delaware limited liability company ("PCC III"), and the undersigned, on behalf ofPCC III, further certifies
as follows:
1. PCC III is duly organized and validly existing under the laws of the State of
Delaware, qualified to transact business in the State of California and has all requisite right, power
and authority to execute and deliver this Certificate, and to undertake all of the transactions on its part
described in the Preliminary Official Statement
2. As set forth in the Preliminary Official Statement, title to part of the property within
the District is held in the name of PCC III. Pacific Century Homes is a member of PCC III, and
Pacific Century will act as the merchant builder entitled to develop the lots owned by PCC III or will
act as developer with respect to the sale oflots to builders or homeowners for construction of homes.
The property owned by PCC III is referred to herein as the "Property." The undersigned, on behalf
of PCC III, makes the representations herein with respect to such Property. Except as otherwise
described in the Preliminary Official Statement, PCC III current expectation is that the Lennar
Entities shall remain the party responsible for land use planning and backbone infrastructure of the
Property on behalf of PCC III. PCC III has not entered into an agreement for development or
management of the Property by any entity other than Pacific Century Homes as described in the
Preliminary Official Statement.
3. Except as described in the Preliminary Official Statement, PCC III and its Affiliates
have not previously failed to comply with any obligations imposed upon it under Rule 15c2-12 of
the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
"Affiliate" of another Person (as defined below) means (a) a Person directly or indirectly owning,
controlling, or holding with power to vote, 15% or more ofthe outstanding voting securities of such
other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or
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indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person
directly or indirectly controlling, controlled by or under common control with such other Person; for
purposes hereof, control means the power to exercise a controlling influence over the management
or policies of a Person, unless such power is solely the result of an official position with such Person.
"Person" means an individual, a corporation, a partnership, an association, a joint stock company,
a trust, any unincorporated organization or a govemment or political subdivision thereof.
4. Except as disclosed in the Preliminary Official Statement, to the actual knowledge
ofthe undersigned, on behalf ofpCC III (hereinafter "the actual knowledge ofPCC III") (a) PCC III
and its Affiliates are not in breach of or in default under any applicable law or administrative
regulation of the State of California or the United States, or any agency or instrumentality of either,
which breach or default would in any way materially and adversely affect the ability ofpCC III to
pay Special Taxes due with respect to the Property, (b) to the actual knowledge ofPCC III, no event
has occurred and is continuing which with the passage of time or giving of notice, or both, would
constitute such a breach or default.
5. Except as disclosed in the Preliminary Official Statement, (a) to the actual
knowledge of PCC III, PCC III and its Affiliates are not in breach of or in default under any
applicable judgment or decree or any loan agreement, option agreement, development agreement,
indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which
PCC III or its Affiliates are, or will upon issuance of the Bonds be, a party or otherwise subject,
which breach or default would in any way materially and adversely affect PCC Ill's ability to develop
the Property or to pay the Special Taxes, and (b) to the actual knowledge of PCC III, no event has
occurred and is continuing that with the passage of time or giving of notice, or both, would constitute
such a breach or default.
6. Except as described in the Preliminary Official Statement, there are no material loans
outstanding and unpaid and no material lines of credit of PCC III that are secured by an interest in
the Property.
7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit,
action, or contingent liability litigation is pending (with service of process to PCC III or any Affiliate
of PCC III, having been accomplished) or, to the actual knowledge of PCC III, threatened (a) to
restrain or enjoin collection of Special Taxes or other sums pledged or to be pledged to pay the
principal of and interest on the Bonds, (b) to restrain or enjoin development of the Property, (c) in
any way contesting or affecting the validity of the Special Taxes or (d) which would in any way
materially and adversely affect PCC Ill's ability to develop the Property or to pay Special Taxes.
8. Except as set forth in the Preliminary Official Statement, no litigation is pending
(with service of process to PCC III having been accomplished), or, to the actual knowledge ofPCC
III, threatened against PCC III or any Affiliate involving PCC III, or any of the property or assets
under the control of PCC III or any Affiliate that involves the possibility of any judgment or
uninsured liability which may result in any material adverse change in the assets or funds held by
PCC III that would materially and adversely affect PCC Ill's ability to develop the Property or to pay
Special Taxes.
9. As of the date thereof, the Preliminary Official Statement, solely with respect to
information contained therein with respect to PCC III and its Affiliates, the proposed development
of the Property, ownership of the Property, PCC Ill's development plan, PCC Ill's financing plan,
and PCC Ill's lenders, if any, and contractual arrangements as set forth under the captions
"INTRODUCTION - The Community Facilities District," "THE COMMUNITY FACILITIES
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DISTRICT" (except the subcaption "- Estimated Assessed Value-To-Lien Ratios") and
"BONDOWNERS' RISKS - Endangered and Threatened Species" and" - Hazardous Substances"
(excluding therefrom information which is identified to a source other than PCC III and the
information under the captions "THE COMMUNITY FACILITIES DISTRICT - Estimated Special
Tax Allocation by Property Ownership,"" - Transportation Uniform Mitigation Fee,"" - Estimated
Assessed Value-to-Lien Ratios,"" - Market Absorption Study," and" - Appraised Property Value"),
is true and correct in all material respects and did not contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
10. PCC III has full power and authority to own and develop the Property and to carry
on its business as presently conducted and as described in the Preliminary Official Statement.
II. PCC III covenants that, while the Bonds or any refunding obligations related thereto
are outstanding, PCC III and its Affiliates will not bring any action, suit, proceeding, inquiry or
investigation at law or in equity, before any court, regulatory agency, public board or body, that in
any way seeks to challenge or overturn the formation of the District, to challenge the adoption of
Ordinance No. TPF A 03-01 (Crowne Hill) of the Authority levying Special Taxes within the District,
to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under
Section 3115.5 ofthe Streets and Highways Code based on recordation ofthe notices of special tax
lien relating thereto. The foregoing covenant shall not prevent PCC III in any way from bringing any
other action, suit or proceeding including, without limitation, an action or suit contending that the
Special Tax has not been levied in accordance with the methodologies contained in the District's Rate
and Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an
action or suit with respect to the application or use of the Special Taxes levied and collected, or an
action or suit to enforce the obligations of the Authority under the Resolution ofIssuance, the Fiscal
Agent Agreement or any agreements between the Authority, the City and/or the District.
12. Except as disclosed in the Preliminary Official Statement, to the actual knowledge
of PCC III after due inquiry, PCC III is not aware that any other public debt secured by a tax or
assessment on the Property exists or is in the process of being authorized or any assessment districts
or community facilities districts have been or are in the process of being formed that include any
portion of the Property.
13. Except as described in the Preliminary Official Statement, PCC III and its Affiliates
have not previously defaulted in payment of, or are currently delinquent on, any ad valorem,
assessment or special lax obligations in any jurisdiction in any material amount.
14. PCC III consents to the issuance of the Bonds. PCC III acknowledges and agrees
that the proceeds of the Bonds will be used as described in the Official Statement.
15. PCC III intends to comply with the provision ofGovemment Code Section 53341.5
relating to the Notice of Special Tax in connection with the sale of the Property, or portions thereof.
16. PCC III acknowledges that interest on the Bonds is estimated to be capitalized
through September I, 2003 and that the Special Tax levies on Developed Property will commence
in Fiscal Year 2003-04 (commencing with the December I, 2003 tax installment) in order to pay for
interest on the Bonds and to pay a portion of the administrative expenses relating to the District.
17. PCC III is solvent and no proceedings are pending or, to the actual knowledge of
PCC III after due inquiry, threatened in which PCC III may be adjudicated as bankrupt or discharged
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from any and all of its debts or obligations or granted an extension of time to pay its debts or
obligations or a reorganization or readjustment of its debts or be subject to control or supervision of
the Federal Deposit Insurance Corporation.
18. The members ofPCC III are solvent and no proceedings are pending, or to the actual
knowledge of PCC III after due inquiry, threatened in which the members of PCC III, may be
adjudicated as bankrupt or discharged from any or all of its respective debts or obligations, or granted
an extension oftime to pay its respective debt or obligations, or be allowed to reorganize or readjust
its respective debts or obligations or be subject to control or supervision of the Federal Deposit
Insurance Corporation.
19. PCC III has not filed for, nor is PCC III aware of, current proceedings for the
reassessment of the assessed value of the Property.
20. To the actual knowledge ofPCC III after due inquiry, there are no claims, disputes,
suits, actions or contingent liabilities among, by and between PCC III, its Affiliates or any contractors
working on the development of the Property which may materially and adversely affect the
development of the Property or the payment of the Special Taxes.
21. Based upon the current development plans, including, without limitation, the current
budget and subject to economic conditions and risks generally inherent in the development of real
property, PCC III presently anticipates that it will have sufficient funds to carry on its business as
presently conducted and as described in the Preliminary Official Statement and to pay Special Taxes
assessed against the Property and do not anticipate that the Authority or the District will be required
to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due to
PCC III's nonpayment of Special Taxes. However, PCC III and its Affiliates are not obligated to
make any additional capital contribution or loan to PCC III at any time and PCC III reserves the right
to change its plan at any time without notice.
22. All information submitted in writing by, or on behalf of, PCC III to the Authority,
the District, the Special Tax Consultant, Stephen G. White, MAl (the "Appraiser"), Disclosure
Counselor the Underwriter in connection with the issuance of the Bonds, was, at the time of
submission, to the actual knowledge of PCC III after due inquiry, true and correct.
23. As to information indicated in Section 9 hereof concerning PCC III and its Affiliates
and the development of the Property, and subject to the limitations and exclusions set forth in
Section 9, PCC III agrees to indemnify and hold harmless, to the extent permitted by law, the
Authority, the District, and its officials and employees, and each person, if any, who controls any of
the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of
Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims,
damages or liabilities, joint or several, to which such indemnified party may become subject under
any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for
any reasonable legal or other expense incurred by it in connection with investigating any claims
against it and defending any actions, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement of a material fact or the omission to state, in the
final Official Statement, as of its date or in any continuing disclosure statement provided by or on
behalf of PCC III, a material fact necessary to make the statement therein, in light of the
circumstances under which it was made not misleading. This indemnity provision shall not be
construed as a limitation on any other liability which PCC III may otherwise have to any indemnified
party, provided that in no event shall PCC III be obligated for double indemnification.
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24. If between the date hereof and the date of the Closing any event relating to or
affecting PCC III, its Affiliates or the development ofthe Property shall occur of which PCC III has
actual knowledge which might or would cause the Official Statement, as then supplemented or
amended, to contain an untrue statement of a material fact or to omit to state a material fact required
to be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, PCC III shall notify the Authority, the District and the
Underwriter and if in the opinion of counsel to the Authority or the Underwriter such event requires
the preparation and publication of a supplement or amendment to the Official Statement, PCC III
shall cooperate with the Authority in the preparation of an amendment or supplement to the Official
Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter.
25. For the "underwriting period," as defined in the Bond Purchase Agreement, if any
event relating to or affecting the PCC Ill, its Affiliates or the development ofthe Property shall occur
as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to
amend or supplement the Official Statement in order to make the Official Statement not misleading
in the light of the circumstances existing at the time it is delivered to a purchaser, PCC III shall
cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement
to the Official Statement in form and substance satisfactory to the Underwriter and counsel to the
Authority which will amend or supplement the Official Statement so that it will not contain an untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances existing at the time the Official Statement is delivered to a
purchaser, not misleading.
26. PCC III agrees to deliver a Certificate dated the date of issuance ofthe Bonds at the
time of issuance of the Bonds in substantially the form attached as Exhibit A.
27. On behalf ofPCC III, I have reviewed the contents ofthis Certificate and have met
with counsel to PCC Ill, for the purpose of discussing the meaning of its contents.
Dated: June _, 2003
PCC III - CROWNE HILL, LLC,
a Delaware limited liability company
By: PACIFIC CENTURY HOMES, INe.,
a California corporation
Its: Administrative Member
By:
Name:
Title:
B-5
EXHIBIT B
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CERTIFICATE OF U.S. HOME, INC.
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Temecula Public Financing Authority (the "Authority") Community
Facilities District No. 03-1 (Crowne Hill) (the "District") 2003 Special Tax Bonds and to the Bond Purchase
Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is
delivered pursuant to and in satisfaction of Section 3( d)(l6) of the Bond Purchase Agreement. Capitalized
terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase
Agreement. The Developer Continuing Disclosure Agreement (the "Developer Continuing Disclosure
Agreement") dated as ofJune 1,2003 by and between Lennar Homes, Inc., a California corporation ("Lennar
Homes") and U.S. Bank National Association, as Dissemination Agent and Fiscal Agent, the Acquisition
Agreement, dated as of March I, 2003, executed by and between the Authority and Lennar Homes (the
"Acquisition Agreement"), the Joint Community Facilities Agreement -RCWD (the "Joint Community
Facilities Agreement - RCWD"), dated as of March 1, 2003 by and among the Temecula Public Financing
Authority, the Rancho California Water District ("RCWD") and Lennar Homes and the Joint Community
Facilities Agreement - EMWD (the "Joint Community Facilities Agreement - EMWD"), dated as of March
I, 2003 by and among the Temecula Public Financing Authority, Eastern Municipal Water District
("EMWD") and Lennar Homes are collectively referred to herein as the "Developer Agreements" and the
Joint Community Facilities Agreement - RCWD and the Joint Community Facilities Agreement - EMWD
are collectively referred to herein as the "Joint Community Facilities Agreements."
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certify the same as an authorized officer of U.S. Home, Inc., a California corporation ("U.S.
Home"), and the undersigned, on behalf of U.S. Home further certifies as follows:
I. (i) U.S. Home is duly organized and validly existing under the laws of the State of
California and has all requisite right, power and authority to execute and deliver this Certificate, and
to undertake all of the transactions on its part described in the Preliminary Official Statement.
2. As set forth in the Preliminary Official Statement, certain property within the District
is owned by LEN One, Inc., a Virginia corporation ("LEN One") with whom the Lennar Entities have
entered into various agreements pursuant to which U.S. Home, Greystone Homes, Inc., a Delaware
corporation ("Greystone Homes"), Lennar Homes, and Lennar Communities, a California corporation
("Lennar Communities") (collectively, the "Lennar Entities") will acquire and/or develop such
property. In addition, as set forth in the Preliminary Official Statement, title to part of the property
within the District is held in the name ofPCC - Crowne Hill I 00, LLC, a Delaware limited liability
company ("PCC 100"). Greystone Homes, is the non-member manager of PCC 100 and Lennar
Homes will act as the merchant builder entitled to develop the lots owned by PCC 100. The property
owned by LENOne, PCC 100 and Greystone Homes is referred to herein as the "Property." The
B-1 -- U.S. Home
undersigned, on behalf of U.S. Home, makes the representations herein with respect to such Property.
The Lennar Entities are, and u.s. Home' current expectation is that the LeDnar Entities shall remain
the parties responsible for land use planning and backbone infrastructure of the Property on behalf
of the Lennar Entities. U.S. Home has not entered into an agreement for development or
management of the Property by any entity other than as described in the Preliminary Official
Statement.
3. Except as described in the Preliminary Official Statement with regard to previous
undertakings relating to Rule 15c2-12 of the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, to the Actual Knowledge of the Undersigned', u.S.
Home is not aware of any material failures within the past five years by the Lennar Entities, their
Affiliates or LENOne to provide periodic continuing disclosure reports or notices of material events
with respect to community facilities districts or assessment districts in California. "Affiliate" of
another Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or
holding with power to vote, 15% or more of the outstanding voting securities of such other Person,
(b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned,
controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly
controlling, controlled by or under common control with such other Person; for purposes hereof,
control means the power to exercise a controlling influence over the management or policies of a
Person, unless such power is solely the result of an official position with such Person. "Person"
means an individual, a corporation, a partnership, an association, a joint stock company, a trust, any
unincorporated organization or a government or political subdivision thereof.
4. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
of the Undersigned (a) the Lennar Entities and their Affiliates are not in breach of or in default under
any applicable law or administrative regulation of the State of California or the United States, or any
agency or instrumentality of either, which breach or default would in any way materially and
adversely affect the proposed Developer Continuing Disclosure Agreement, the Acquisition
Agreement, the Joint Community Facilities Agreements, or the ability of the respective Lennar
Entities to pay Special Taxes under the Option Agreements (as defined in the Preliminary Official
Statement), (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing
which with the passage of time or giving of notice, or both, would constitute such a breach or default.
5. Except as disclosed in the Preliminary Official Statement, (a) to the Actual
Knowledge of the Undersigned, the Lennar Entities and their Affiliates are not in breach of or in
default under any applicable judgment or decree or any loan agreement, option agreement,
development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other
instrument to which the Lenoar Entities or their Affiliates are, or will upon issuance of the Bonds be,
a party or otherwise subject, which breach or default would in any way materially and adversely
affect the Lennar Entities ability to develop the Property or to pay the Special Taxes, and (b) to the
Actual Knowledge ofthe Undersigned, no event has occurred and is continuing that with the passage
of time or giving of notice, or both, would constitute such a breach or default.
1 As used in this certificate, the phrase <<Actual Knowledge of the Undersigned" shall mean the knowledge
that the undersigned currently has or has obtained from an interview with such officers and responsible employees of
u.s. Home as the undersigned has determined are likely, in the ordinary course of their respective duties, to have
knowledge of the matters set forth herein. With your permission, the undersigned has not conducted any
extraordinary inspection or inquiry other than such inspections or inquiries as are prudent and customary in
connection with the ordinary course ofLennar Home's business and operations.
B-2 -- U.S. Home
6. Except as described in the Preliminary Official Statement, there are no material loans
outstanding and unpaid and no material lines of credit of U.S. Home or its Affiliates that are secured
by an interest in the Property.
7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit,
action, or contingent liability litigation is pending (with service of process to U.S. Home having been
accomplished) or, to the Actual Knowledge of the Undersigned, threatened (a) to restrain or enjoin
collection of Special Taxes or other sums pledged or to be pledged to pay the principal of and interest
on the Bonds, (b) to restrain or enjoin the execution of and performance of Lennar Homes'
obligations under the proposed Developer Continuing Disclosure Agreement, the Acquisition
Agreement or the Joint Community Facilities Agreements, (c) to restrain or enjoin development of
the Property, (d) in any way contesting or affecting the validity of the Special Taxes, the proposed
Developer Continuing Disclosure Agreement, the Acquisition Agreement, the Joint Community
Facilities Agreements or any other document, license, permit or approval necessary to the
performance on the Lennar Entities' part under the proposed Developer Continuing Disclosure
Agreement, the Acquisition Agreement or the Joint Community Facilities Agreements or (e) which
would in any way materially and adversely affect the Lennar Entities' ability to develop the Property
or to pay Special Taxes.
8. Except as set forth in the Preliminary Official Statement, no litigation is pending
(with service of process to U.S. Home or any Affiliate having been accomplished), or, to the Actual
Knowledge of the Undersigned, threatened against the Lennar Entities or any Affiliate involving the
Lennar Entities or any Affiliate, or any of the property or assets under the control of the Lennar
Entities or any Affiliate that involves the possibility of any judgment or uninsured liability which
may result in any material adverse change in the assets or funds held by the Lennar Entities or any
Affiliate that would materially and adversely affect the Lennar Entities' ability to develop the
Property or to pay Special Taxes.
9. As of the date thereof, but solely with respect to information regarding Lennar
Entities, their Affiliates, and LENOne, the proposed development ofthe Property, ownership of the
Property and the Lennar Entities' development plan, the Lennar Entities' financing plan, LEN One,
the Lennar Entities' lenders, ifany, and contractual arrangements involving the Lennar Entities and
subject to the exclusions set forth below, the information contained in the Preliminary Official
Statement under the captions "INTRODUCTION - The Community Facilities District," (excluding
therefrom the first two paragraphs for which no certification is made), "CONTINUING
DISCLOSURE - Lennar Homes and KB Home Coastal," and "THE COMMUNITY FACILITIES
DISTRICT" (excluding therefrom information under the subcaptions "Estimated Special Tax
Allocation by Property Ownership,"" - Direct and Overlapping Debt," Overlapping Assessment and
Community Facilities Districts," " - Other Overlapping Direct Assessments," - Transportation
Uniform Mitigation Fee," "- "- Estimated Assessed Value- To-Lien Ratios," "- Market Absorption
Study," and "- Appraised Property Value" for which no certification is made), is true and correct in
all material respects and did not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading.
10. U.S. Home has full corporate power and authority to own and develop the Property
and to carry on its business as presently conducted and as described in the Preliminary Official
Statement.r
II. U.S. Home covenants that, while the Bonds or any refunding obligations related
thereto are outstanding, U.S. Home will not bring any action, suit, proceeding, inquiry or
B-3 -- u.s. Home
investigation at law or in equity, before any court, regulatory agency, public board or body, that in
any way seeks to challenge or overturn the formation of the District, to challenge the adoption of
Ordinance No. TPF A 03-0 I (Crowne Hill) of the Authority levying Special Taxes within the District,
to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under
Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax
lien relating thereto. The foregoing covenant shall not prevent U.S. Home in any way from bringing
any other action, suit or proceeding including, without limitation, an action or suit contending that
the Special Tax has not been levied in accordance with the methodologies contained in the District's
Rate and Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied,
an action or suit with respect to the application or use of the Special Taxes levied and collected, or
an action or suit to enforce the obligations of the Authority under the Resolution of Issuance, the
Fiscal Agent Agreement, the Acquisition Agreement, the Joint Community Facilities Agreements or
any agreements with the Authority, the City and/or the District for which U.S. Home is a party or
beneficiary..
12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
of the Undersigned, U.S. Home is not aware that any other public debt secured by a tax or assessment
on the Property exists or is in the process of being authorized or any assessment districts or
community facilities districts have been or are in the process of being formed that include any portion
of the Property.
13. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge
ofthe Undersigned, U.S. Home and its Affiliates have not in the last five years defaulted in payment
of, and are not currently delinquent on, any ad valorem, assessment or special tax obligations in
California in any material amount.
14. U.S. Home consents to the issuance of the Bonds. U.S. Home acknowledges and
agrees that the proceeds of the Bonds will be used as described in the Official Statement, provided
that nothing in this statement modifies any right or obligation of the parties under the Acquisition
Agreement or the Joint Community Facilities Agreements.
15. U.S. Home intends to comply with the provision of Government Code Section
53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or portions
thereof that it takes title to or develops.
16. U.S. Home acknowledges that interest on the Bonds is estimated to be capitalized
through September I, 2003 and that the Special Tax levies on Developed Property will commence
in Fiscal Year 2003-04 (commencing with the November 1,2003 tax installment) in order to pay for
interest on the Bonds and to pay a portion of the administrative expenses relating to the District.
17. U.S. Home is solvent and no proceedings are pending or, to the Actual Knowledge
of the Undersigned, threatened in which U.S. Home may be adjudicated as bankrupt or discharged
from any and all of its debts or obligations or granted an extension of time to pay its debts or
obligations or a reorganization or readjustment of its debts.
18. To the Actual Knowledge of the Undersigned, Lennar Corporation, a Delaware
corporation ("Lennar Corporation"), are solvent and no proceedings are pending, or to the Actual
Knowledge of the Undersigned, threatened in which Lennar Corporation may be adjudicated as
bankrupt or discharged from any or all of its debts or obligations, or granted an extension of time to
pay its debts or obligations, or be allowed to reorganize or readjust its debts or obligations.
B-4 -- U.S. Home
19. To the Actual Knowledge of the Undersigned, the Lennar Entities have not filed for,
nor is U.S. Home aware of, current proceedings for the reassessment of the assessed value of the
Property.
20. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits,
actions or contingent liabilities among, by and between U.S. Home, its Affiliates or any contractors
working on the development of the Property which may materially and adversely affect the
development of the Property or the payment of the Special Taxes on the Property.
21. Based upon the current development plans, including, without limitation, the current
budget and subject to economic conditions and risks generally inherent in the development of real
property, U.S. Home presently anticipates that the Lennar Entities will have sufficient funds to carry
on their business as presently conducted and as described in the Preliminary Official Statement and
to pay Special Taxes assessed against the Property and does not anticipate that the Authority or the
District will be required to resort to a draw on the Reserve Fund for payment of principal of or
interest on the Bonds due to the Lennar Entities' nonpayment of Special Taxes. However, none of
the Lennar Entities or their Affiliates are obligated to make any additional capital contribution or loan
to the Lennar Entities at any time and the Lennar Entities reserve the right to change their plan at any
time without notice.
22. All information submitted in writing by, or on behalf of, U.S. Home to the Authority,
the District, the Special Tax Consultant, Stephen G. White, MAl (the "Appraiser"), Disclosure
Counselor the Underwriter in connection with the issuance of the Bonds, was, at the time of
submission, to the Actual Knowledge of the Undersigned true and correct.
23. As to information indicated in Section 9 hereof concerning the Lennar Entities their
Affiliates and the development of the Property, and subject to the limitations and exclusions set forth
in Section 9, U.S. Home agrees to indemnify and hold harmless, to the extent permitted by law, the
Authority, the District, and their officials and employees, and each person, if any, who controls any
of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of
Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims,
damages or liabilities, joint or several, to which such indemnified party may become subject under
any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for
any reasonable legal or other expense incurred by it in connection with investigating any claims
against it and defending any actions, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement of a material fact or the omission to state a
material fact, in the final Official Statement, as of its date or in any continuing disclosure statement,
as of its date, provided by or on behalf of the Lennar Entities or LENOne, a material fact necessary
to make the statement therein, in light of the circumstances under which it was made not misleading.
This indemnity provision shall not be construed as a limitation on any other liability which the
Lennar Entities may otherwise have to any indemnified party, provided that in no event shall U.S.
Home be obligated for double indemnification nor for the negligence or wilful misconduct of another.
24. Ifbetween the date hereof and the date of the Closing, to the Actual Knowledge of
the Undersigned, any event relating to or affecting the Lennar Entities, their Affiliates, LEN One or
the development of the Property shall occur which might or would cause the Official Statement, as
then supplemented or amended, to contain an untrue statement of a material fact or to omit to state
a material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading, u.s. Home shall notify the
Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or the
Underwriter such event requires the preparation and publication of a supplement or amendment to
B-5 -- U.S. Home
the Official Statement, U.S. Home shall cooperate with the Authority in the preparation of an
amendment or supplement to the Official Statement in form and substance satisfactory to counsel to
the Authority and to the Underwriter.
25. For the "underwriting period," as defmed in the Bond Purchase Agreement, if any
event relating to or affecting the Lennar Entities, their Affiliates, LEN One or the development of the
Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel
to the Authority, to amend or supplement the Official Statement in order to make the Official
Statement not misleading in the light of the circumstances existing at the time it is delivered to a
purchaser, U.S. Home shall cooperate with the Authority and the Underwriter in the preparation of
an amendment or supplement to the Official Statement in form and substance satisfactory to the
Underwriter and counsel to the Authority which will amend or supplement the Official Statement so
that it will not contain an untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances existing at the time the
Official Statement is delivered to a purchaser, not misleading.
26. U.S. Home agrees to deliver a Certificate dated the date of issuance of the Bonds at
the time of issuance of the Bonds in substantially the form attached as Exhibit A.
27. On behalf of U.S. Home, I have reviewed the contents of this Certificate and have
met with counsel to U.S. Home, for the purpose of discussing the meaning of its contents.
Dated: June _, 2003
U.S. HOME, INC.,
a California corporation
By:
Name:
Title:
B-6 -- U.S. Home
EXHIBIT C
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CLOSING CERTIFICATE OF GREYSTONE HOMES, INC.
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Community Facilities District No. 03-1 (Crowne Hill) of the Temecula
Public Financing Authority 2003 Special Tax Bonds and to the Bond Purchase Agreement dated
2003 (the "Bond Purchase Agreement") entered into in connection therewith. This certificate is delivered
pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the
meanings ascribed to them in the Certificate (the "Certificate") dated ,2003 delivered on behalf
of Greys tone Homes, Inc., a Delaware corporation ("Greys tone Homes"), which is attached hereto as Exhibit
A.
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certify the same as an authorized officer of Greys tone Homes, and the undersigned, on behalf
of Greystone Homes, further certifies as follows:
I. Each statement made in the Certificate is affirmed and restated as if made on the date
hereof.
2. No event has occurred since the date of the Preliminary Official Statement which has
adversely affected or will materially and adversely affect the business, properties, operations, prospects or
financial condition ofthe Lennar Entities, their Affiliates or LEN One which would materially and adversely
affect the development of the Property or their ability to pay Special Taxes.
3. Greystone Homes has received the Official Statement relating to the Bonds, and each
statement made in the Certificate referring to the Preliminary Official Statement is affirmed as ifit relates to
the Official Statement.
4. Each statement made in the Certificate referring to the proposed Developer Continuing
Disclosure Agreement is affirmed as if it relates to the Developer Continuing Disclosure Agreement as
executed and delivered.
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C-I -- Greystone Homes
Dated: July _' 2003
Very truly yours,
GREYSTONE HOMES, INC.,
a Delaware corporation
By:
Name:
Title:
C-2 -- Greystone Homes
EXHIBIT C
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CLOSING CERTIFICATE OF KB HOMES COASTAL
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Community Facilities District No. 03-1 (Crowne Hill) of the Temecula
Public Financing Authority 2003 Special Tax Bonds and to the Bond Purchase Agreement dated
2003 (the "Bond Purchase Agreement") entered into in connection therewith. This certificate is delivered
pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defmed have the
meanings ascribed to them in the Bond Purchase Agreement. A copy of a Certificate (the "Certificate") dated
,2003 delivered on behalf ofKB Homes Coastal of California, Inc., a California corporation ("KB
Homes Coastal"), is attached hereto as Exhibit A.
The undersigned certifies that he is familiar with the facts herein certified and is authorized and
qualified to certify the same as an authorized officer ofKB Homes Coastal, and the undersigned, on behalf ofKB
Homes Coastal, further certifies as follows:
I. Each statement made in the Certificate is affirmed and restated as if made on the date hereof.
2. No event has occurred since the date of the Preliminary Official Statement which has
adversely affected or will materially and adversely affect the business, properties, operations, prospects or
financial condition of KB Homes Coastal, or its Affiliates which would materially and adversely affect the
development of the Property or its ability to pay Special Taxes.
3. KB Homes Coastal has received the Official Statement relating to the Bonds, and each
statement made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to the
Official Statement.
4. Each statement made in the Certificate referring to the proposed Developer Continuing
Disclosure Agreement is affirmed as if it relates to the Developer Continuing Disclosure Agreement as executed
and delivered.
5. KB Homes Coastal has duly authorized the execution and delivery of the Developer
Continuing Disclosure Agreement, is duly authorized to perform the obligations on its part to be performed
thereunder, and the Developer Continuing Disclosure Agreement constitutes the legal, valid and binding
obligations of KB Homes Coastal, enforceable against it in accordance with its terms.
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C-I
Dated: July _' 2003
Very truly yours,
KB HOMES COASTAL, INC., a California corporation
By:
Name:
Title:
C-2
EXHIBIT C
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CLOSING CERTIFICATE OF LENNAR COMMUNITIES, INC.
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Community Facilities District No. 03-1 (Crowne Hill) ofthe Temecula
Public Financing Authority 2003 Special Tax Bonds and to the Bond Purchase Agreement dated
2003 (the "Bond Purchase Agreement") entered into in connection therewith. This certificate is delivered
pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the
meanings ascribed to them in the Certificate (the "Certificate") dated ,2003 delivered on behalf
of Lennar Communities, Inc., a California corporation ("Lennar Communities"), which is attached hereto
as Exhibit A.
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certify the same as an authorized officer of Lennar Communities, and the undersigned, on
behalf of Lennar Communities, further certifies as follows:
1. Each statement made in the Certificate is affirmed and restated as if made on the date
hereof.
2. No event has occurred since the date of the Preliminary Official Statement which has
adversely affected or will materially and adversely affect the business, properties, operations, prospects or
financial condition of the Lennar Entities, their Affiliates or LEN One which would materially and adversely
affect the development of the Property or their ability to pay Special Taxes.
3. Lennar Communities has received the Official Statement relating to the Bonds, and each
statement made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to
the Official Statement.
4. Each statement made in the Certificate referring to the proposed Developer Continuing
Disclosure Agreement is affirmed as if it relates to the Developer Continuing Disclosure Agreement as
executed and delivered.
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C-I -- Lennar Communities
Dated: July _, 2003
Very truly yours,
LENNAR COMMUNITIES, INC.,
a California corporation
By:
Name:
Title:
C-2 -- Lennar Communities
EXHIBIT C
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CLOSING CERTIFICATE OF LENNAR HOMES OF CALIFORNIA, INC.
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Community Facilities District No. 03-1 (Crowne Hill) of the
Temecula Public Financing Authority 2003 Special Tax Bonds and to the Bond Purchase Agreement
dated ,2003 (the "Bond Purchase Agreement") entered into in connection therewith. This
certificate is delivered pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not
otherwise defmed have the meanings ascribed to them in the Certificate (the "Certificate") dated
, 2003 delivered on behalf of Lennar Homes of California, Inc., a California corporation
("Lennar Homes"), which is attached hereto as Exhibit A.
The undersigned certifies that he is familiar with the facts herein certified and is
authorized and qualified to certifY the same as an authorized officer of Lennar Homes, and the
undersigned, on behalf of Lennar Homes, further certifies as follows:
I. Each statement made in the Certificate is affirmed and restated as if rnade on the date
hereof.
2. No event has occurred since the date of the Preliminary Official Statement which has
adversely affected or will materially and adversely affect the business, properties, operations, prospects
or fmancial condition of the Lennar Entities, their Affiliates or LENOne which would materially and
adversely affect the developrnent of the Property or their ability to pay Special Taxes.
3. Lennar Homes has received the Official Statement relating to the Bonds, and each
statement made in the Certificate referring to the Preliminary Official Statement is affIrmed as ifit relates
to the Official Statement.
4. Each statement made in the Certificate referring to the proposed Developer
Continuing Disclosure Agreement is affIrmed as if it relates to the Developer Continuing Disclosure
Agreement as executed and delivered.
5. Lennar Homes has duly authorized the execution and delivery of the Developer
Continuing Disclosure Agreement, is duly authorized to perform the obligations on its part to be
performed thereunder, and the Developer Continuing Disclosure Agreement constitutes the legal, valid
and binding obligation of Lennar Hornes, enforceable against it in accordance with its terms.
C-I -- Lennar Homes
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C-2 -- Lennar Homes
Dated: July -----' 2003
Very truly yours,
LENNAR HOMES OF CALIFORNIA, INC.,
a California corporation
By:
Name:
Title:
C-3 n Lennar Homes
EXHIBIT C
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CLOSING CERTIFICATE OF PCC III - CROWNE HILL 100, LLC
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Community Facilities District No. 03-1 (Crowne Hill) ofthe Temecula
Public Financing Authority 2003 Special Tax Bonds and to the Bond Purchase Agreement dated ,
2003 (the "Bond Purchase Agreement") entered into in connection therewith. This certificate is delivered
pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the
meanings ascribed to them in the Certificate (the "Certificate") dated ,2003 delivered on behalf
of Greystone Homes, Inc., a Delaware corporation ("Greystone Homes") as the Non-Member Manager of
PCC III - Crowne Hill 100, LLC, a Delaware limited liability company ("PCC 100"), which is attached
hereto as Exhibit A.
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certify the same as an authorized officer ofPCC 100, and the undersigned, on behalf ofPCC
100, further certifies as follows:
I. Each statement made in the Certificate is affirmed and restated as if made on the date
hereof.
2. No event has occurred since the date of the Preliminary Official Statement which has
adversely affected or will materially and adversely affect the business, properties, operations, prospects or
financial condition of PCC 100 which would materially and adversely affect the development ofthe Property
or its ability to pay Special Taxes.
3. PCC 100 has received the Official Statement relating to the Bonds, and each statement
made in the Certificate referring to the Preliminary Official Statement is affirmed as ifit relates to the Official
Statement.
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C-I -- PCC 100
Dated: July _' 2003
Very truly yours,
PCC III - CROWNE HILL 100, LLC,
a Delaware limited liability company
By: GREYSTONE HOMES, INe.,
a California corporation
Its: Administrative Member
By:
Name:
Title:
C-2 -- PCC 100
EXHIBIT C
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
SPECIAL TAX BONDS, SERIES 2003-A
CLOSING CERTIFICATE OF PCC III
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Community Facilities DistrictNo. 03-1 (Crowne Hill) of the Temecula
Public Financing Authority Special Tax Bonds. Series 2003-A and to the Bond Purchase Agreement dated
.2003 (the "Bond Purchase Agreement") entered into in connection therewith. This certificate
is delivered pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise
defined have the meanings ascribed to them in the Bond Purchase Agreement. A copy of a Certificate (the
"Certificate") dated , 2003 delivered on behalf of Pacific Century Homes, Inc., a California
Corporation as the Administrative Member of PCC III - Crowne Hill, LLC, a Delaware limited liability
company ("PCC III") is attached hereto as Exhibit A.
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certifY the same as an authorized officer ofPCC III, and the undersigned, on behalf ofpCC
III, further certifies as follows:
I. Each statement made in the Certificate is affirmed and restated as if made on the date
hereof.
2. No event has occurred since the date ofthe Preliminary Official Statement which has
adversely affected or will materially and adversely affect the business, properties, operations, prospects or
financial condition ofPCC III which would materially and adversely affect the development of the Property
or its ability to pay Special Taxes.
3. PCC III has received the Official Statement relating to the Bonds, and each statement
made in the Certificate referring to the Preliminary Official Statement is affirmed as ifit relates to the Official
Statement.
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C.I
Dated: July _, 2003
Very truly yours,
PCC III - CROWNE HILL, LLC,
a Delaware limited liability company
By: PACIFIC CENTURY HOMES, INe.,
a California corporation
Its: Administrative Member
By:
Name:
Title:
C-2
EXHIBIT C
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
2003 SPECIAL TAX BONDS
CLOSING CERTIFICATE OF U.S. HOME, INC.
To: Temecula Public Financing Authority on behalf of
Community Facilities District No. 03-1 (Crowne Hill)
Stone & Youngberg LLC
Ladies and Gentlemen:
Reference is made to Community Facilities District No. 03-1 (Crowne Hill) ofthe Temecula
Public Financing Authority 2003 Special Tax Bonds and to the Bond Purchase Agreement dated ,
2003 (the "Bond Purchase Agreement") entered into in connection therewith. This certificate is delivered
pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the
meanings ascribed to them in the Certificate (the "Certificate") dated ,2003 delivered on behalf
of U.S. Home, Inc., a California corporation ("U.S. Home"), which is attached hereto as Exhibit A.
The undersigned certifies that he is familiar with the facts herein certified and is authorized
and qualified to certifY the same as an authorized officer of U.S. Home, and the undersigned, on behalf of
U.S. Home, further certifies as follows;
1. Each statement made in the Certificate is affirmed and restated as if made on the date
hereof.
2. No event has occurred since the date of the Preliminary Official Statement which has
adversely affected or will materially and adversely affect the business, properties, operations, prospects or
financial condition of the Lennar Entities, their Affiliates or LENOne which would materially and adversely
affect the development of the Property or their ability to pay Special Taxes.
3. U.S. Home has received the Official Statement relating to the Bonds, and each statement
made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to the Official
Statement.
4. Each statement made in the Certificate referring to the proposed Developer Continuing
Disclosure Agreement is affirmed as if it relates to the Developer Continuing Disclosure Agreement as
executed and delivered.
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C-I -- U.S. Home
Dated: July _, 2003
Very truly yours,
U.S. HOME, INC.,
a California corporation
By:
Name:
Title:
C-2 -- U.S. Home
EXHIBIT D
FORMS OF OPINION OF COUNSEL TO
LENNAR COMMUNITIES AND TO KB HOME COASTAL
C-l
TEMCH BPAk.wpd/LR/424
EXHIBIT E
ACKNOWLEDGMENT OF LENONE, INC., A VIRGINIA CORPORATION
RELATING TO THE ISSUANCE OF BONDS AND THE IMPOSITION OF THE
SPECIAL TAX BY TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL)
The undersigned, , Vice President, of LEN One, Inc., a Virginia
corporation ("LENOne"), hereby acknowledges for the benefit of the Temecula Public Financing
Authority Community Facilities District No. 03-1 (Crowne Hill) (the "District") as follows;
1.
California.
LENOne is a Virginia corporation in good standing under the laws of the State of
2. The undersigned has all authority necessary to execute this Acknowledgment on
behalf of LEN One for delivery to the Board of Directors (the "Board") of the Temecula Public
Financing Authority (the "Authority") in connection with the imposition by the Board, as the
legislative body of the District, of the special tax of the District on the property located within the
District, as more particularly described on the attached Exhibit "A" (the "Property") relative to
which LEN One has entered into various agreements as described below.
3. On July 12,2002, title to property containing 344 homesites owned by PCC III-
Crowne Hill LLC, a Delaware limited liability company ("PCC III"), and title to property containing
112 homesites owned by PCC III - Crowne Hill 112, LLC, a Delaware limited liability company
("PCC 112"), was transferred to LENOne. As of March 15, 2003, LENOne owned 439 homesites.
LENOne entered into three Construction Agreements (a "Crowne Hill 213 Construction
Agreement," a "Crowne Hill 131 Construction Agreement," and a "Crowne Hill 112 Construction
Agreement,") with Lennar Communities, Inc., a California corporation ("Lennar Communities") and
Lennar Homes of California, Inc. ("Lennar Homes") and three Option Agreements (a "Crowne Hill
213 Option Agreement," a "Crowne Hill 131 Construction Agreement," and a "Crowne Hill 112
Construction Agreement") with Lennar Communities, and Greystone Homes, Inc., a Delaware
corporation ("Greys tone Homes"). Pursuant to the terms of the Construction Agreements, Lennar
Homes and Lennar Communities are obligated to perform all work necessary to bring all of
LENOne's homesites to a finished stage. Pursuant to the three Option Agreements, Lennar Homes
and Greystone Homes are given the option to purchase LENOne's homesites and are permitted to
construct homes thereon even prior to exercising their options to purchase.
4. LEN One has received from Lennar Communities and Lennar Homes the Amended
and Restated Notice of Special Tax Lien (recorded May 19,2003, as Document No. 2003-358388),
including the attached Rate and Method of Apportionment of the Special Tax.
5. LEN One hereby acknowledges the imposition ofthe special tax ofthe District on the
Property in the form, at the rates and in the manner set forth in the Notice of Special Tax Lien.
LEN One does not object to the proceedings taken by the Authority to form the District, including
the election therefor or the levy of the special tax for any authorized purpose, including but not
E-I
limited to, the payment of debt service on bonds of the District, provided that LENOne does not
waive its rights to object to any levy for other than an authorized purpose or otherwise in violation
of the voter authorization referred to herein.
6. LEN One acknowledges that the failure to pay the special tax of the District levied
against the Property may result in the foreclosure of the Property.
7. To the present actual knowledge I of the undersigned, LENOne has not notified any
party to the Option Agreements or the Construction Agreements of an event of default under such
agreements, and, to the undersigned's present actual knowledge, the undersigned is not aware of any
event that, with the giving of notice and the passage of time, might constitute an event of default
under the Option Agreements or the Construction Agreements.
8. LEN One is solvent and no proceedings are pending or, to the present actual
knowledge ofthe undersigned, threatened in which LENOne may be (i) adjudicated as bankrupt, (ii)
discharged from any and all of its debts or obligations, (iii) granted an extension of time to pay its
debts or obligations or (iv) granted a reorganization or readjustment of its debts. To the present
actual knowledge of the undersigned, the GMAC Model Home Finance, Inc., a Virginia corporation,
the sole shareholder of LEN One (herein, the "Sole Shareholder") of LEN One is solvent and to the
present actual knowledge of the undersigned no proceedings are pending or threatened in which the
sole shareholder of LEN One may be (i) adjudicated as bankrupt, (ii) discharged from any and all of
its debts or obligations, (iii) granted an extension of time to pay its debts or obligations or (iv)
granted a reorganization or readjustment of its debts.
Neither LENOne, nor any of its officers (including the undersigned), directors, employees,
advisors or shareholders, (i) have been requested to review, or have reviewed, any disclosure
document (including, but not limited to, the Preliminary Official Statement and the Official
Statement) relating to the bonds to be issued by the District, and (ii) make any representation
whatsoever regarding the content of any disclosure document (including, but not limited to, the
Preliminary Official Statement and Official Statement) relating to the bonds to be issued by the
District.
The matters acknowledged in this certificate speak only as of the date set forth below.
Further, neither LENOne, nor any of its officers (including the undersigned), directors, employees,
advisors or shareholders, has any obligation to, nor will they, advise the District, the Authority or
any other party of any matters that may come to the attention of LENOne, or any of its officers
I As used in this certificate, the phrase "actual knowledge" shall mean the knowledge
that the undersigned currently has or has obtained from an interview with such officers and
responsible employees of LEN One as the undersigned has determined are likely, in the ordinary
course of their respective duties, to have knowledge of the matters set forth herein. With your
permission, the undersigned has not conducted any extraordinary inspection or inquiry other than
such inspections or inquiries as are prudent and customary in connection with the ordinary
course of LEN One's business and operations.
E-2
(including the undersigned), directors, employees, advisors or shareholders, subsequent to the date
hereof that may affect the acknowledgements set forth in paragraphs I - 8, inclusive.
Date: June _, 2003
LENOne, a Virginia corporation
By:
Name;
Title:
,2003
Stone & Youngberg LLC
515 South Figueroa Street, Suite 1060
Los Angelcs, California 90071
Re: Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill)
Snecial Tax Bonds. Series 2003-A
Ladies and Gentlemen:
In connection with the proposed sale to you of Temecula Public Financing Authority (the
"Authority") Community Facilities District No. 03-1 (Crowne Hill) (the "District") Special Tax Bonds, Series
2003-A (the "Bonds"), the Authority has delivered to you a Preliminary Official Statement, dated
2003, relating to the Bonds (the "Preliminary Official Statement"). The Authority, for purposes of compliance
with Rule 15c2-12 of the Securities and Exchange Commission, deems the Preliminary Official Statement to be
final as of its date, except for the omission of no more than the following information: the offering prices, interest
rates, selling compensation, aggregate principal amount, principal amount per maturity, dates of mandatory
sinking fund payments, delivery dates, and any other terms of the Bonds relating to such matters.
Very truly yours,
TEMCH BPAk.wpdILR/424
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-1
(CROWNE HILL)
By:
Shawn Nelson, acting on behalfofTemecula Public
Financing Authority for the District
5
TEMCH BPAk.wpdILRf424
APPENDIX G
CONTINUING DISCLOSURE AGREEMENT OF
LENNAR HOMES OF CALIFORNIA, INC.
This CONTINUING DISCLOSURE AGREEMENT (this "Disclosure Agreement") is executed and
entered into as of June 1, 2003, by and between U.S. Bank National Association, a national banking
association organized and existing under and by virtue of the laws of the United States of America (the
"Bank"), in its capacity as Fiscal Agent (the "Fiscal Agent") and in its capacity as Dissemination Agent (the
"Dissemination Agent"), Lennar Homes of California, Inc., a California corporation organized and existing
under and by virtue ofthe laws of the State of California (the "Developer");
WITNESSETH:
WHEREAS, pursuant to the Fiscal Agent Agreement, dated as of June 1,2003 (the "Fiscal Agent
Agreement"), by and between the Temecula Public Financing Authority, ajoint exercise of powers authority
organized and existing under and by virtue of the laws ofthe State of California (the "Authority") for and on
behalf of the Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne Hill)
(the "District") and the Fiscal Agent, the Authority has issued the Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill) Special Tax Bonds, Series 2003-A (the "2003 Bonds")
in the aggregate principal amount of $
WHEREAS, the 2003 Bonds are payable from and secured by special taxes levied on certain of the
property within the District;
WHEREAS, LENOne, Inc., a Virginia corporation (the "Owner") is the owner of a substantial
portion of the property within the District; and
WHEREAS, the Owner entered into three separate sets of option agreements with Lennar Homes,
Greystone Homes, and Lennar Communities for parcels in the District and the option agreements were each
amended on October 9, 2002 by a First Amendment to Option Agreement ("collectively, the Option
Agreements").;
WHEREAS, this Disclosure Agreement is being executed and delivered by the Developer and the
Bank for the benefit of the owners and beneficial owners of the 2003 Bonds and in order to assist the
Participating Underwriter of the 2003 Bonds in complying with Securities and Exchange Commission Rule
15c2-12(b)(5);
NOW, THEREFORE, for and in consideration of the mutual premises and covenants herein
contained, the parties hereto agree as follows:
Section 1. Definitions. Capitalized undefined terms used herein shall have the meanings ascribed
thereto in the Fiscal Agent Agreement. In addition, the following capitalized terms shall have the following
meanings:
"Affiliate" of another Person means (a) a Person directly or indirectly owning, controlling, or holding
with power to vote, 15% or more of the outstanding voting securities of such other Person, (b) any Person
15% or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with
power to vote, by such other Person, and (c) any Person directly or indirectly controlling, controlled by, or
under common control with, such other Person; for purposes hereof, control means the power to exercise a
controlling influence over the management or policies of a Person, unless such power is solely the result of
an official position with such Person.
"Assumption Agreement" means an agreement between a Major Developer, or an Affiliate thereof,
the Fiscal Agent and the Dissemination Agent containing terms substantially similar to this Disclosure
Agreement, whereby such Major Developer or Affiliate agrees to provide Semi-Annual Reports and notices
of significant events with respect to the portion of the Property owned by such Major Developer and its
Affiliates.
G-I
"Bond Counsel" means an attorney or a firm of attorneys experienced in matters relating to the
issuance of obligations by the states and their political subdivisions and the tax-exempt status of the interest
thereon.
"Development Plan" means, with respect to a Major Developer, the specific improvements such
Major Developer intends to make, or cause to be made, to such Major Developer's Property in order for such
Property to enable production units to be completed and sold to third parties, the time frame in which such
improvements are intended to be made and the estimated costs of such improvements; the Developer's
Development Plan, as of the date hereof, is described in the Official Statement under the caption "THE
COMMUNITY FACILITIES DISTRICT --Property Ownership -- Lennar Corporation and its Subsidiaries
Lennar Communities, Lennar Homes, Greystone Homes and US Home; LENOne."
"Dissemination Agent" means the Bank, acting in its capacity as Dissemination Agent hereunder, or
any successor Dissemination Agent designated in writing by the Developer and which has filed with the
Fiscal Agent a written acceptance of such designation.
"District" means Community Facilities District No. 03-1 (Crowne Hill).
"Event of Bankruptcy" means, with respect to a Person, that such Person files a petition or institutes
a proceeding under any act or acts, state or federal, dealing with or relating to the subject or subjects of
bankruptcy or insolvency, or under any amendment of such act or acts, either as a bankrupt or as an insolvent,
or as a debtor, or in any similar capacity, wherein or whereby such Person asks or seeks or prays to be
adjudicated a bankrupt, or is to be discharged from any or all of such Person's debts or obligations, or offers
to such Person's creditors to effect a composition or extension of time to pay such Person's debts or asks,
seeks or prays for reorganization or to effect a plan of reorganization, or for a readjustment of such Person's
debts, or for any other similar relief, or if any such petition or any such proceedings of the same or similar
kind or character is filed or instituted or taken against such Person and the same shall remain undismissed for
a period of60 days, or if a receiver of the business or of the property or assets of such Person is appointed
by any court, or if such Person makes a general assigmnent for the benefit of such Person's creditors.
"Financing Plan" means, with respect to a Major Developer, the method by which such Major
Developer intends to finance its Development Plan, including specific sources of funding for such
Development Plan; the Developer's Financing Plan, as of the date hereof, is described in the Official
Statement under the caption "THE COMMUNITY FACILITIES DISTRICT --Property Ownership -- Lennar
Corporation and its Subsidiaries Lennar Communities, Lennar Homes, Greystone Homes and US Home;
LENOne - Plan of Finance."
"Financial Statements" means, with respect to a Major Developer, the full financial statements,
special purpose financial statements, project operating statements or other reports reflecting the financial
position of each entity, enterprise, fund, account or other person (other than a financial institution acting as
a lender in the ordinary course of business) identified in such Major Developer's Financing Plan as a source
of funding for such Major Developer's Development Plan; provided that, if full financial statements, special
purpose financial statements, project operating statements or other reports reflecting the financial position
are audited and prepared in accordance with generally accepted accounting principles as in effect from time
to time, then Financial Statements shall include such audited financial statements or reports.
"First Report Date" means the date in each year that is three months after the end ofthe Developer's
fiscal year (currently November 30 of each year), which First Report Date, as of the date of this Disclosure
Agreement, is January 31, of each year, commencing January 31, 2004.
"First Report Period" means with respect to a Semi-Annual Report due on the First Report Date, the
last six months of the Developer's fiscal year (currently November 30 of each year) just ended.
"Listed Events" means any of the events listed in Section 4(a) hereof.
"Major Developer" means (i) the Developer, so long as the sum of the portion of the Property owned
by the Owner, the Developer and any Affiliate ofthe Developer is subject to 15% or more ofthe Special Tax
levy of the District for the then current Fiscal Year ofthe District, and (ii) any Property Owner, including the
Developer, that owns any portion of such Property for which production units are not completed and sold to
third parties and that, together with Property owned by such Property Owner and together with Property
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owned by Affiliates of such Property Owner and by the Owner, is subject to 15% or more of the Special Tax
levy of the District for the then current Fiscal Year of the District; provided, however, that the term shall not
include any Property Owner that would otherwise qualifY as a Major Developer if such Property Owner has
assumed the obligations hereunder pursuant to Section 5.
"National Repository" means any Nationally Recognized Municipal Securities Information
Repository for purposes of the Rule. The Nationally Recognized Municipal Securities Information
Repository for purposes of the Rule are identified in the Securities and Exchange Commission website located
at sec.gov/info/municipal/nrmsir.htm.
"Official Statement" means the Official Statement, dated
, 2003, relating to the 2003
Bonds.
"Participating Underwriter" means Stone & Youngberg LLe.
"Person" means an individual, a corporation, a partnership, a limited liability company, an
association, a joint stock company, a trust, any unincorporated organization or a government or political
subdivision thereof.
"Property" means (i) the real property within the boundaries of the District that is owned, as of the
date of this Disclosure Agreement, by the Owner, the Developer, or any Affiliate ofthe Developer, or (ii) any
real property within the boundaries ofthe District subsequently purchased by the Developer or any Affiliate
of the Developer.
"Property Owner" means any Person that owns a fee interest in any Property.
"Report Dates" means, collectively, the First Report Dates and the Second Report Dates.
"Report Period" means, with respect to a Semi-Annual Report due on the First Report Date, the last
six months of the Developer's fiscal year (which fiscal year currently ends November 30 of each year) just
ended, and with respect to a Semi-Annual Report due on the Second Report Date, the first six months of the
Developer's then current fiscal year (which fiscal year currently ends November 30 of each year).
"Repository" means each National Repository and each State Repository.
"Rule" means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as the same may be amended from time to time.
"Second Report Date" means the date in each year that is nine months after the end of the
Developer's fiscal year (which currently ends November 30, of each year), which Second Report Date, as of
the date of this Disclosure Agreement, is July 31, of each year, commencing July 31, 2004.
"Second Report Period" means with respect to a Semi-Annual Report due on the Second Report Date,
the first six months of the Developer's current fiscal year (which fiscal year currently ends November 30 of
each year).
"Semi-Annual Report" means any Semi-Annual Report provided by the Developer pursuant to, and
as described in, Sections 2 and 3 hereof.
"State Repository" means any public or private repository or entity designated by the State of
California as a slate repository for the purpose of the Rule and recognized as such by the Securities and
Exchange Commission. As of the date of this Disclosure Agreement, there is no State Repository.
Section 2. Provision of Semi-Annual Reoorts. (a) So long as the Developer's obligations hereunder
have not been terminated pursuant to Section 6, (i) the Developer shall prepare a Semi-Annual Report not
later than January 31 and July 31 of each year, and (ii) not later than February 15 and August 15 (15 days
after the Report Date), the Developer shall, or, upon receipt of the Semi-Annual Report by the Dissemination
Agent, the Dissemination Agent shall, provide to each Repository, the Authority, the Fiscal Agent (if the
Fiscal Agent is not the Dissemination Agent), the District and the Participating Underwriter a Semi-Annual
Report which is consistent with the requirements of Scction 3 of this Disclosure Agreement, commencing
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with the first Semi-Annual Report Date to occur January 31, 2004. The Semi-Annual Report may be
submitted as a single document or as separate documents comprising a package, and may include by reference
other information as provided in Section 3 hereof; provided, however, that the audited financial statements
of the Developer may be submitted separately from the balance of the Semi-Annual Report that is to be
provided no later than the First Report Date, and later than the date required above for the filing of such Semi-
Annual Report if not available by that date. If the Developer's fiscal year changes, it shall give notice of such
change in the same manner as for a Listed Event under Section 4(b) hereof. While any Option Agreement
is in effect, the Developer shall provide the information required under this Disclosure Agreement for itself,
with respect to its property and the property owned by the Owner which is subject to each Option Agreement.
(b) If by February 15 or August 15 (15 days after a Report Date), the Fiscal Agent has not
received a copy of the Semi-Annual Report (in a form suitable for reporting to the Repositories), the Fiscal
Agent shall notifY the Developer and the Dissemination Agent of such failure to receive the Semi-Annual
Report. The Developer shall provide a written certification with, or as part of, each Semi-Annual Report
furnished to the Fiscal Agent to the effect that such Semi-Annual Report constitutes the Semi-Annual Report
required to be furnished by it hereunder. The Fiscal Agent and the Dissemination Agent may conclusively
rely upon such certification of the Developer and shall have no duty or obligation to review such Semi-
Annual Report.
(c) If the Fiscal Agent is unable to verifY that a Semi-Annual Report has been provided to the
Repositories by the date required in subsection (a), the Fiscal Agent shall send a notice to the Municipal
Securities Rulemaking Board, the appropriate State Repository, if any, the Dissemination Agent and the
Participating Underwriter in substantially the form attached as Exhibit A.
(d) The Dissemination Agent shall:
(i) determine prior to each Report Date the name and address of each National
Repository and each State Repository, if any;
(ii)
herein; and
provide any Semi-Annual Report received by it to each Repository, as provided
(iii) with respect to each Semi-Annual Report received by it and provided by it to each
Repository, file a report with the Authority, the Developer, the Fiscal Agent (if the Dissemination
Agent is not the Fiscal Agent) and the Participating Underwriter certifYing that the Semi-Annual
Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided and
listing all the Repositories to which it was provided.
Section 3. Content of Semi-Annual Reoorts. The Developer's Semi-Annual Report shall contain or
incorporate by reference the following:
(a) With respect only to the Semi-Annual Report that is required to be provided no later than
each First Report Date, Financial Statements for each Major Developer (other than any Major Developer with
respect to which the Developer's obligations hereunder have been assumed in accordance with Section 5 or
terminated in accordance with Section 6 hereof). If audited Financial Statements are required to be provided,
and such audited Financial Statements are not available by the time such Scmi-Annual Report is required to
be filed pursuant to Section 2(a) hereof, such Semi-Annual Report shall contain unaudited Financial
Statements, and the audited Financial Statements shall be filed as a supplement or amendment to the Semi-
Annual Report when they become available. Such Financial Statements shall be for the most recently ended
fiscal year for the entity covered thereby. Such Financial Statements need not include the Owner. A Semi-
Annual Report containing a Financial Statement shall contain the following caveat about all Financial
Statements delivered as a part of such Semi-Annual Report:
"The Financial Statements ofthe Developer included with, orreferred to in, the Semi-Annual
Report are for informational purposes only. In the event of a failure to pay any installment
of Special Taxes, and after depletion of the Reserve Funds, the real property in the District
is the sole security for the Bonds. The obligation of the Developer and its Affiliates to pay
unpaid Special Tax installments does not constitute a personal indebtedness ofthe Developer
or any member, parent, subsidiary, or person or entity controlling or controlled by the
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Developer (each an "Affiliate") for which the funds or assets (other than the property in the
District that is delinquent) ofthe Developer or any Affiliate may be required, by operation
oflaw or otherwise, to be used to pay debt service on the Bonds. It should not be inferred
from the inclusion ofthe Financial Statements in the Semi-Annual Report of the Developer
that the funds or assets of the Developer or any Affiliate (other than the property in the
District) are available to cure any delinquencies in the payment of Special Taxes."
(b) With respect to all Semi-Annual Reports, the following information with respect to each
Major Developer (other than any Major Developer with respect to which the Developer's obligations
hereunder have been assumed in accordance with Section 5 or terminated in accordance with Section 6
hereof) for the First Report Period or Second Report Period, as applicable; provided, that, if such information
is required from the Developer as to another Major Developer which is not an Affiliate of the Developer, the
Developer shall only be required to provide such information that it has actual knowledge of:
(i) If information regarding such Major Developer has not previously been included in
a Semi-Annual Report or in the Official Statement, the Development Plan of such Major Developer
or, if information regarding such Major Developer has previously been included in a Semi-Annual
Report or in the Official Statement, a description of the progress made in the Development Plan of
such Major Developer since the date of such information and a description of any material changes
in such Development Plan and the causes or rationale for such changes.
(ii) If information regarding such Major Developer has not previously been included in
a Semi-Annual Report or in the Official Statement, the Financing Plan of such Major Developer or,
if information regarding such Major Developer has previously been included in a Semi-Annual
Report or in the Official Statement, a description of any material changes in the Financing Plan of
such Major Developer and the causes or rationale for such changes.
(iii) A description or update ofthe status oftentative and final maps recorded within the
District relating to such Major Developer.
(iv) The number of building permits issued with respect to any of such Major
Developer's Property during the six month period ending on the last day of the applicable Report
Period as well as the number of building permits issued with respect to such Major Developer's
Property included in each previous Semi-Annual Report, set forth opposite such previous reporting
period.
(v) A description of how many acres of Property were owned by such Major Developer
as of the end of the Report Period covered by such Semi-Annual Report, how many acres of such
Major Developer's Property have production units completed and sold to third parties, (i) with
respect to the Property planned for park/open space have been developed with a park or designated
as open space on a final residential tract map and (ii) with respect to the Property planned for
infrastructure use, has the infrastructure planned for such property constructed, during the applicable
Report Period and how many acres of such Major Developer's Property had not reached such level
of development described in clauses (i) and (ii) above.
(vi) A description of any sales of portions of such Major Developer's Property during
the applicable Report Period, including the identification of each buyer (other than individual home
buyers) and the number of residential lots and other acres sold; provided, however, that sales of five
or fewer acres may be aggregated for the purpose of such description.
(vii) a statement as to whether or not such Major Developer and all of its Affiliates paid,
prior to their becoming delinquent, all Special Taxes, property taxes, assessments and special taxes
levied on the Property owned by such Major Developer and such Affiliates that would have becn
delinquent had they not been paid by the preceding December 10 or April 10, respectively, and if
such Major Developer or any of such Affiliates is delinquent in the payment of such Special Taxes,
property taxes, assessments or special taxes levied on the Property, a statement identifYing each
parcel that is so delinquent, specifYing the amount of each such delinquency and describing any plans
to resolve such delinquency.
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(viii) Unless disclosed in the Official Statement or a prior Semi-Annual Report, any
material changes in the information relating to the Developer, any Major Developer and/or the
Property owned by the Developer or such Major Developer contained in the Official Statement under
the caption "BONDOWNERS' RISKS -- Endangered and Threatened Species" and "-- Hazardous
Substances."
(ix) An update of the status of any previously reported Listed Event described in Section
4 hereof and information regarding Listed Events, if any, required to be reported pursuant to Section
4 hereof.
(x) Unless disclosed in the Official Statement or a prior Semi-Annual Report, any
material change in the legal structure or organization of a Major Developer.
(xi) The filing and service of process on such Major Developer of a lawsuit against such
Major Developer seeking damages, or a judgment in a lawsuit against the Major Developer, either
of which could have a significant impact on the Major Developer's ability to pay Special Taxes or
to sell or develop all or any portion of the Major Developer's Property.
(xii) If applicable, a statement that a Property Owner no longer meets the definition of
Major Developer, which statement shall be provided in the manner required for Semi-Annual Reports
by the next succeeding date on which a Semi-Annual Report would have been filed unless such fact
has previously been reported under Section 3 or Section 4.
(c) In addition to any of the information expressly required to be provided under paragraphs (a)
and (b) of this Section, the Developer 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.
Major Developers that are Affiliates of each other may, but are not required to, file a single Semi-
Annual Report coveriog all such entities. Any or all of the items listed in this Section 3 may be included by
specific reference to other documents which have been submitted to each of the Repositories or the Securities
and Exchange Commission. If the document included by reference is a final official statement, it must be
available from the Municipal Securities Rulemaking Board. The Developer shall clearly identifY each such
other document so included by reference. If a Property Owner which was a Major Developer no longer
meets the definition of Major Developer, no Semi-Annual Report shall be required to be filed by or with
respect to such Property Owner under this Section 3; provided, however, that notice that the Property Owner
does not meet the definition of Major Developer shall be provided in the manner required for Semi-Annual
Reports by the next succeeding date on which a Semi-Annual Report would have been filed unless such fact
has previously been reported under Section 3 or Section 4.
Section 4. Reporting of Listed Events. (a) Pursuant to the provisions of this Section 4, the
Developer shall promptly give, or cause to be given notice of the occurrence of any of the following events
with respect to each Major Developer (other than any Major Developer with respect to which the Developer's
obligations hereunder have been assumed in accordance with Section 5 or terminated in accordance with
Section 6 hereof); provided, that, if such information is required from the Developer as to another Major
Developer which is not an Affiliate of the Developer, the Developer shall only be required to provide such
information that it has actual knowledge of:
(i) Unless disclosed in the Official Statement or a prior Semi-Annual Report, any
conveyance by such Major Developer of any of its Property to an entity that is not an Affiliate of
such Major Developer, the result of which conveyance is to cause the transferee to become a Major
Developer. In addition, if the transferee has assumed any obligations of Developer under this
Disclosure Agreement pursuant to Section 5 hereof, a copy of the executed Assumption Agreement
shall be attached to the Notice. Notwithstanding the foregoing, the Developer shall have no
obligation to provide notice of the transfer of Property (i) from the Developer to an Affiliale of the
Developer, and (ii) from the Owner to the Developer or any Affiliate of the Developer pursuant to
the Option Agreements.
(ii) Any failure of such Major Developer, or any Affiliate of such Major Developer, to
pay when due general property taxes, special taxes or assessments with respect to its Property.
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(iii) Any denial or termination of credit, any denial or termination of, or default under,
any line of credit or loan or any other loss of a source of funds expected to be used for the Project
that would have a material adverse affect on such Major Developer's most recently disclosed
Financing Plan or Development Plan or on the ability of such Major Developer, or any Affiliate of
such Major Developer, to pay Special Taxes within the District when due.
(iv) The occurrence of an Event of Bankruptcy with respect to such Major Developer,
or any Affiliate of such Major Developer, that, in the reasonable judgment of such Major Developer;
would have a material adverse affect on such Major Developer's most recently disclosed Financing
Plan or Development Plan or on the ability of such Major Developer, or any Affiliate of such Major
Developer that owns any portion ofthe Property, to pay Special Taxes within the District when due.
(v) Any significant amendments to land use entitlement approvals for such Major
Developer's Property, if such amendments, in the reasonable judgment of such Major Developer,
would prevent or significantly delay the implementation of such Major Developer's Development
Plan as described in the Official Statement or in any previous Semi-Annual Report.
(vi) Any previously undisclosed governmentally-imposed preconditions to
commencement or continuation of development on such Major Developer's Property, if such
preconditions, in the reasonable judgment of such Major Developer, would prevent or significantly
delay such Major Developer's Development Plan as described in the Official Statement or in any
previous Semi-Annual Report.
(vii) Any previously undisclosed legislative, administrative or judicial challenges to
development on such Major Developer's Property, ifsuch challenges, in the reasonable judgment of
such Major Developer, would prevent or significantly delay such Major Developer's Development
Plan as described in the Official Statement or in any previous Semi-Annual Report.
(viii) Any changes, in the reasonable judgment of such Major Developer, in the alignment,
design or likelihood of completion of significant public improvements affecting such Major
Developer's Property. including major thoroughfares, sewers, water conveyance systems and similar
facilities that, in the reasonable judgment of such Major Developer, would prevent or significantly
delay such Major Developer's Development Plan as described in the Official Statement or any
previous Semi-Annual Report.
(ix) The filing of any lawsuit against a Major Developer which, in the reasonable
judgment of such Major Developer, will adversely affect the completion of the development of
Property owned by such Major Developer, or litigation which if decided against the Major
Developer, in the reasonable judgment of the Major Developer, would materially adversely affect
the financial condition of the Major Developer.
(b) Whenever the Developer obtains knowledge of the occurrence of a Listed Event, the
Developer shall promptly notify the Dissemination Agent, the Fiscal Agent, the Participating Underwriter,
and the District in writing. The Dissemination Agent shall report the occurrence pursuant to subsection (c)
below. The Developer shall provide the Dissemination Agent with a form of notice of such event in a format
suitable for reporting to the Municipal Securities Rulemaking Board and each State Repository, if any.
(c) If the Dissemination Agent has received notice of a Listed Event, the Dissemination Agent
shall file a notice of such occurrence with the Municipal Securities Rulemaking Board and each State
Repository and shall provide a copy of such notice 10 the Participating Underwriter described on Exhibit B
attached hereto, to the Dissemination Agent and to the District. In the event there is no Dissemination Agent,
the Fiscal Agent shall file the notice required in clause (b) if the form of notice is provided to the Fiscal Agent
by the Developer, and the Developer shall compensate the Fiscal Agent for providing such notices.
Section 5. Assumotion of Obligations: Assumotion ofDevelooer's Obligations bv the Owner. (a)
If any portion of the Property owned by the Owner or the Developer, or any Affiliate of the Developer, is
conveyed to a Person such that, upon such conveyance, such Person will be a Major Developer, all of the
obligations of the Developer hereunder with respect to the Property owned by such Major Developer and its
Affiliates shall be assumed by such Major Developer or by an Affiliate. In order to effect such assumption,
such Major Developer or Affiliate thereof shall enter into an Assumption Agreement. A copy of the
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Assumption Agreement shall be provided to the Participating Underwriter described on Exhibit B attached
hereto and to the Dissemination Agent, the Fiscal Agent and the District as set forth in Section 4(i) in the
manner provided in 4(b) and (c). Notwithstanding the foregoing, there shall be no requirement that a
transferee enter into an Assumption Agreement provided that such transferee is (i) an Affiliate of the
Developer, or (ii) the Developer or any Affiliate of the Developer pursuant to the Option Agreements.
(b) Notwithstanding that (i) the Developer shall default in the performance of its obligations
under any Option Agreement, (ii) an Option Agreement is terminated as a result of said default and (iii) the
Developer no longer owns any property within the District, all of the obligations of the Developer hereunder
shall continue to be performed by the Developer until such time as such obligations shall be assumed by a
Major Developer.
Section 6. Termination ofReoorting Obligation. The Developer's obligations under this Disclosure
Agreement with respect to a Major Developer (including its obligalions with respect to itself as a Major
Developer) shall terminate upon the earliest to occur of (a) the date on which such Major Developer is no
longer a Major Developer, as defined herein, (b) the date on which the Developer's obligations with respect
to such Major Developer are assumed under an Assumption Agreement entered into pursuant to Section 5
hereof, or (c) the date on which all Special Taxes levied on any Property owned by such Major Developer
and its Affiliates are paid or prepaid in full; provided, however, that upon the occurrence of any of the events
described in clause (a), (b) or (c) with respect to a Major Developer, the Developer's obligations hereunder
with respect to each other Major Developer, if any, not previously terminated shall remain in full force and
effect. All of the Developer's obligations under this Disclosure Agreement shall terminate, except as
provided in Section 11 hereof, upon the earliest to occur of (x) the date on which no Property Owner is a
Major Developer, (y) the date on which (i) the Developer is no longer a Major Developer, and (ii) the
Developer no longer has any obligations under this Disclosure Agreement with respect to any remaining
Property as a result of such obligations having been assumed under one or more Assumption Agreements
entered into pursuant to Section 5 hereof, or (z) the date on which all of the 2003 Bonds have been legally
defeased, redeemed, or paid in full. Upon the occurrence of any such termination prior to the final maturity
of the 2003 Bonds, the Developer shall give notice of such termination in the same manner as for a Listed
Event under Section 4 hereof.
Section 7. Dissemination Agent. The initial Dissemination Agent shall be U.S. Bank National
Association. The Developer may, from time to time, appoint or engage a Dissemination Agent to assist it in
carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination
Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign
by providing thirty (30) days' written notice to the Developer, the Authority and the Fiscal Agent (if the
Fiscal Agent is not the Dissemination Agent) such resignation to become effective upon acceptance of the
appointment by a successor Dissemination Agent. Upon receiving notice of such resignation, the Developer
shall promptly appoint a successor Dissemination Agent by an instrument in writing, delivered to the fiscal
Agent. If no appointment of a successor Dissemination Agent shall be made pursuant to the foregoing
provisions of this Section within forty-five (45) days after the Dissemination Agent shall have given to the
Developer, the Authority and the Fiscal Agent written notice of its resignation, the Dissemination Agent may
apply to any court of competent jurisdiction to appoint a successor Dissemination Agent. Said court may
thereupon after such notice, if any, as such court may deem proper, appoint a successor Dissemination Agent.
The Developer shall provide the Authority and the fiscal Agent with written notice of the identity of any
successor Dissemination Agent appointed or engaged by the Developer. The Dissemination Agent shall have
no duty to prepare the Semi-Annual Report nor shall the Dissemination Agent be responsible for filing any
Semi-Annual Report not provided to it by the Developer in a timely manner and in a form suitable for filing.
If the Dissemination Agent is other than the Fiscal Agent, the Developer shall be responsible for paying the
fees and expenses of the Dissemination Agent for its services provided hereunder in accordance with its
schedule of fees as amended from time to time. If the Dissemination Agent is the Fiscal Agent, the District
shall be responsible for paying the fees and expenses of the Dissemination Agent for its services provided
hereunder in accordance with its agreement with the District.
Section 8. Amendment: Waiver. Notwithstanding any other provision ofthis Disclosure Agreement,
the Developer, the fiscal Agent and the Dissemination Agent may amend this Disclosure Agreement (and
the Fiscal Agent and the Dissemination Agent shall agree to any amendment so requested by the Developer,
provided that the Fiscal Agent or the Dissemination Agent shall not be obligated to enter into such
amendment that modifies or increases its duties and obligations hereunder), and any provision of this
Disclosure Agreement may be amended or waived, provided that the following conditions are satisfied:
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(a) if the amendment or waiver relates to Sections 2(a), 3 or4(a) hereof 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 (as defined in the Rule) with respect to the
2003 Bonds, or type of business conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of Bond
Counsel approved by the Authority, have complied with the requirements of the Rule at the time of the
primary offering of the 2003 Bonds, after taking into account any amendments or interpretations ofthe Rule,
as well as any change in circumstances; and
(c) the proposed amendment or waiver either (i) is approved by owners of the 2003 Bonds in
the manner provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the
consent of owners of the 2003 Bonds, or (ii) does not, in the opinion of Bond Counsel approved by the
Authority, materially impair the interests of owners or beneficial owners of the 2003 Bonds.
If the financial information or operating data contained within the Financial Statements to be
provided in the Semi-Annual Report or amendment or supplement thereto is amended pursuant to the
provisions hereof, the first Semi-Annual Report or amendment or supplement thereto containing the operating
data or financial information in accordance with such amendment shall explain, in narrative form, the reasons
for the amendment and the impact ofthe change in the type of operating data or financial information being
provided.
As required by the Rule, if an amendment is made to the provisions hereof specifYing the accounting
principles to be followed in preparing Financial Statements, the financial information for the year in which
the change is made shall present a comparison between the Financial Statements or information prepared on
the basis ofthe new accounting principles and those prepared on the basis ofthe former accounting principles.
The comparison shall include a qualitative discussion of the differences in the accounting principles and the
impact of the change in the accounting principles on the presentation of the Financial Statements, in order
to enable investors to evaluate the ability of the Major Developer to generally meet its obligations. To the
extent reasonably feasible, the comparison shall be quantitative. A notice of the change in the accounting
principles shall be sent to the Repositories in the same manner as for a Listed Event under Section 4 hereof.
Section 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent
the Developer from disseminating any other information, using the means of dissemination set forth in this
Disclosure Agreement or any other means of communication, or including any other information in any Semi-
Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this
Disclosure Agreement. Ifthe Developer chooses to include any information in any Semi-Annual Report or
notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure
Agreement, the Developer shall have no obligation under this Disclosure Agreement to update such
information or include it in any future Semi-Annual Report or notice of occurrence of a Listed Event.
Section 10. Default. In the event of a failure of the Developer or the Fiscal Agent to comply with
any provision of this Disclosure Agreement, the Fiscal Agent at the written direction of the Participating
Underwriter or the owners of at least 25% aggregate principal amount of Outstanding 2003 Bonds, upon
receipt of indemnification satisfactory to the Fiscal Agent shall, or any owner or beneficial owner of the 2003
Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific
performance by court order, to cause the Developer, the Dissemination Agent or the Fiscal Agent, as the case
may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure
Agreement shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole remedy
under this Disclosure Agreement in the event of any failure of the Developer, the Dissemination Agent or the
Fiscal Agent to comply with this Disclosure Agreement shall be an action to compel performance.
Section 11. Duties. Immunities and Liabilities of Fiscal Agent and Dissemination Agent. Neither
the Fiscal Agent nor the Dissemination Agent (if other than the Fiscal Agent or the Fiscal Agent in its
capacity as Dissemination Agent) shall have any responsibility for the content of any Semi-Annual Report.
The Dissemination Agent (if other than the Fiscal Agent or the Fiscal Agent in its capacity as Dissemination
Agent) and the Fiscal Agent shall have only such duties as are specifically set forth in this Disclosure
Agreement. The Developer agrees to indemnify and save each of the Fiscal Agent and the Dissemination
Agent, and their respective officers, directors, employees and agents, harmless against any loss, expense and
liabilities which it or they may incur arising out of or in the exercise or performance of their powers and
G-9
duties hereunder, including the reasonable costs and expenses (including attorneys fees) of defending against
any claim of liability with counsel approved by the Developer, which approval shall not be unreasonably
withheld, but excluding losses, expenses and liabilities due to the Fiscal Agent's or the Dissemination Agent's
negligence, willful misconduct or failure to comply with any provision of this Disclosure Agreement. The
obligations of the Developer under this Section shall survive resignation or removal of such Dissemination
Agent and payment of the 2003 Bonds and the resignation or removal of the Trustee. Any action for which
indemnification is sought from the Developer shall be deemed an action on a contract (this Agreement) for
which the provisions of Section 18 are applicable. All of the protections from liability applicable to the Fiscal
Agent shall apply to the Dissemination Agent. The Dissemination Agent and Fiscal Agent shall have no
responsibility for the preparation, review, form or content of any Semi-Annual Report or any notice of a
Listed Event. No provision of this Disclosure Agreement shall require or be construed to require the
Dissemination Agent or Fiscal Agent to interpret or provide an opinion concerning any information disclosed
hereunder. Information disclosed hereunder by the Dissemination Agent may .contain such disclaimer
language concerning the Dissemination Agent's responsibilities hereunder with respect thereto as the
Dissemination Agent may deem appropriate. The Dissemination Agent and Fiscal Agent may conclusively
rely on the determination of the Developer as to the materiality of any event for purposes of Section 4 hereof.
Neither the Fiscal Agent nor the Dissemination Agent make any representation as to the sufficiency of this
Disclosure Agreement for purposes of the Rule. The Developer's obligations under this Section shall survive
the termination of this Disclosure Agreement.
Section 12. Notices. Any notice or communications to or among any of the parties to this Disclosure
Agreement shall be given to all of the following and may be given as follows:
If to the Developer:
If to the Community
Facilities District:
If to the
Dissemination
If to the
Fiscal Agent:
If to the
Participating
Underwriter:
Lennar Homes of California
c/o Lennar Communities
24800 Chrisanta Drive
Mission Viejo, California 92691
Telephone: (949) 598-8640
Telecopier: (949) 598-8641
Attention: Mr. [Graham Jones], Chief Financial Officer
Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill)
43200 Business Park Drive
Temecula, California 92590
Attention: Finance Director
Telephone: 909/694-6440
Telecopier: 909694-6499
U.S. Bank National Association
550 South Hope Street, Suite 500
Los Angeles, California 90071
Telephone: 213/533-8712
Telecopier: 213/533-8729
U.S. Bank National Association
550 South Hope Street, Suite 500
Los Angeles, California 90071
Telephone: 213/533-8712
Telecopier: 213/533-8729
Stone & Youngberg LLC
One Ferry Building
San Francisco, California 94 I II
Telephone: 415/445-2300
Telecopier; 415/445-2395
Attention: Municipal Research Department
Section 13. Beneficiaries. The Participating Underwriter and the owners and beneficial owners from
time to time of the 2003 Bonds shall be third party beneficiaries under this Disclosure Agreement. This
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Disclosure Agreement shall inure solely to the benefit of the Developer, the Fiscal Agent, the Dissemination
Agent, the Participating Underwriter and owners and beneficial owners from time to time of the 2003 Bonds,
and shall create no rights in any other person or entity. Any action by a beneficiary of this Agreement shall
be subject to Section 18 below.
Section 14. Counteroarts. This Disclosure Agreement may be executed in several counterparts, each
of which shall be an original and all of which shall constitute but one and the same instrument.
Section 15. Merger. Any person succeeding to all or substantially all of the Dissemination Agent's
corporate trust business shall be the successor Dissemination Agent without the filing of any paper or any
further act.
Section 16. Severabilitv. In case anyone or more of the provisions contained herein shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision hereof.
Section 17. State of California Law Governs. The validity, interpretation and performance of this
Disclosure Agreement shall be governed by the laws of the State of California.
Section 18. Attornevs' Fees. In the event of the bringing of any action or suit by any Party
against another Party arising out of this Agreement, the Party in whose favor final judgment shall
be entered shall be entitled to recover from the other Party all costs and expenses of suit, including
reasonable attorneys' fees.
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IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agreement as
of the date first above written.
LENNAR HOMES OF CALIFORNIA, INC.,
a California corporation
By:
Its:
U.S. BANK NATIONAL ASSOCIATION,
as Fiscal Agent
By:
Authorized Officer
U.S. BANK NATIONAL ASSOCIATION,
as Dissemination Agent
By:
Authorized Officer
G-12
EXHIBIT A
NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD
OF FAILURE TO FILE SEMI-ANNUAL REPORT
Name of Obligated Person:
Name of Bond Issue:
Lennar Homes of California, Inc., a California corporation
Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill)
Special Tax Bonds, Series 2003-A
Date ofIssuance;
,2003
NOTICE IS HEREBY GIVEN that Lennar Homes of California, Inc. (the "Developer") has
not provided a Semi-Annual Report with respect to the above-named Bonds as required by the Continuing
Disclosure Agreement, dated as of June 1,2003, by and between the Developer and U.S. Bank National
Association, as Fiscal Agent and Dissemination Agent. [The Developer anticipates that the Semi-Annual
Report will be filed by .]
Dated;
,20_
U.S. BANK NATIONAL ASSOCIATION, as
Dissemination Agent, on behalf of Lennar Homes
of California, Inc.
cc: Temecula Public Financing Authority
c/o City ofTemecula
Stone & Youngberg LLC
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EXHIBIT B
PARTICIPATING UNDERWRITER
Stone & Youngberg LLC
One Ferry Building
San Francisco, California 94111
Telephone: 415/445-2300
Telecopier: 415/445-2395
Attention: Municipal Research Department.
G-14
CONTINUING DISCLOSURE AGREEMENT OF
KB HOME COASTAL, INC.
This CONTINUING DISCLOSURE AGREEMENT (this "Disclosure Agreement") is executed and
entered into as .of June I, 2003, by and between U.S. Bank National Associatian, a national banking
association .organized and existing under and by virtue of the laws of the United States of America (the
"Bank"), in its capacity as Fiscal Agent (the "Fiscal Agent") and in its capacity as Dissemination Agent (the
"Dissemination Agent"), and KB Hame Coastal, Inc., a California corporatian organized and existing under
and by virtue of the laws of the State of California (the "Developer");
WITNESSETH:
WHEREAS, pursuant to the Fiscal Agent Agreement, dated as of June 1,2003 (the "Fiscal Agent
Agreement"), by and between the Temecula Public Financing Autharity, a joint exercise of pawers authority
organized and existing under and by virtue ofthe laws of the State afCalifarnia (the "Authority") for and on
behalf of the Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne Hill)
(the "District") and the Fiscal Agent, the Authority has issued the Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill) Special Tax Bonds, Series 2003-A (the "2003 Bonds")
in the aggregate principal amount of $
WHEREAS, the 2003 Bonds are payable from and secured by special taxes levied on certain of the
property within the District;
and
WHEREAS, the Developer is the .owner of a substantial portion ofthe property within the District;
WHEREAS, this Disclosure Agreement is being executed and delivered by the Developer and the
Bank far the benefit of the owners and beneficial owners of the 2003 Bonds and in order to assist the
Participating Underwriter of the 2003 Bonds in complying with Securities and Exchange Cammission Rule
15c212(b)(5);
NOW, THEREFORE, for and in consideration of the mutual premises and covenants herein
cantained, the parties hereto agree as follows:
Section I. Definitions. Capitalized undefined terms used herein shall have the meanings ascribed
thereto in the Fiscal Agent Agreement. In addition, the following capitalized terms shall have the following
meanmgs:
"Affiliate" .of another Person means (a) a Person directly or indirectly owning, controlling, or holding
with power to vote, 15% or more of the outstanding vating securities of such other Person, (b) any Person
15% or more afwhose outstanding voting securities are directly or indirectly awned, cantrolled, or held with
power ta vote, by such other Person, and (c) any Person directly or indirectly controlling, controlled by, or
under common control with, such other Persan; far purposes hereof, control means the power to exercise a
controlling influence over the management or policies of a Person, unless such power is solely the result .of
an official position with such Person.
"Assumption Agreement" means an agreement between a Major Developer, or an Affiliate thereof,
the Fiscal Agent and the Dissemination Agent containing terms substantially similar to this Disclosure
Agreement, whereby such Major Develaper or Affiliate agrees to provide Semi-Annual Reports and notices
.of significant events with respect to the portion of the Property awned by such Major Developer and its
Affiliates.
"Bond Counsel" means an attorney or a firm of attorneys experienced in matters relating to the
issuance of obligations by the states and their political subdivisions and the tax-exempt status of the interest
thereon.
"Development Plan" means, with respect to a Major Developer, the specific improvements such
Majar Developer intends to make, or cause to be made, to such Major Developer's Property in order far such
G-15
Property to enable production units to be completed and sold to third parties, the time frame in which such
improvements are intended to be made and the estimated costs of such improvements; the Developer's
Development Plan, as of the date hereof, is described in the Official Statement under the caption "THE
COMMUNITY FACILITIES DISTRICT --Property Ownership -- KB Home Coastal.
"Dissemination Agent" means the Bank, acting in its capacity as Dissemination Agent hereunder, or
any successor Dissemination Agent designated in writing by the Developer and which has filed with the
Fiscal Agent a written acceptance of such designation.
"District" means Community Facilities District No. 03-1 (Crowne Hill).
"Event of Bankruptcy" means, with respect to a Person, that such Person files a petition or institutes
a proceeding under any act or acts, state or federal, dealing with or relating to the subject or subjects of
bankruptcy or insolvency, or under any amendment of such act or acts, either as a bankrupt or as an insolvent,
or as a debtor, or in any similar capacity, wherein or whereby such Person asks or seeks or prays to be
adjudicated a bankrupt, or is to be discharged from any or all of such Person's debts or obligations, or offers
to such Person's creditors to effect a composition or extension of time to pay such Person's debts or asks,
seeks or prays for reorganization or to effect a plan of reorganization, or for a readjustment of such Person's
debts, or for any other similar relief, or if any such petition or any such proceedings of the same or similar
kind or character is filed or instituted or taken against such Person and the same shall remain undismissed for
a period of 60 days, or if a receiver of the business or of the property or assets of such Person is appointed
by any court, or if such Person makes a general assignment for the benefit of such Person's creditors.
"Financing Plan" means, with respect to a Major Developer, the method by which such Major
Developer intends to finance its Development Plan, including specific sources of funding for such
Development Plan; the Developer's Financing Plan, as of the date hereof, is described in the Official
Statement under the caption "THE COMMUNITY FACILITIES DISTRICT --Property Ownership -- KB
Home Coastal - Plan of Finance."
"Financial Statements" means, with respect to a Major Developer, the full fmancial statements,
special purpose financial statements, project operating statements or other reports reflecting the financial
position of each entity, enterprise, fund, account or other person (other than a financial institution acting as
a lender in the ordinary course of business) identified in such Major Developer's Financing Plan as a source
of funding for such Major Developer's Development Plan; provided that, iffull financial statements, special
purpose financial statements, project operating statements or other reports reflecting the financial position
are audited and prepared in accordance with generally accepted accounting principles as in effect from time
to time, then Financial Statements shall include such audited financial slatements or reports.
"First Report Date" means the date in each year that is three months after the end of the Developer's
fiscal year (currently November 30 of each year), which First Report Date, as of the date of this Disclosure
Agreement, is January 31 of each year, commencing January 31, 2004.
"First Report Period" means with respect to a Semi-Annual Report due on the First Report Date, the
last six months of the Developer's fiscal year (currently November 30 of each year) just ended.
"Listed Events" means any of the events listed in Section 4(a) hereof.
"Major Developer" means (i) the Developer, so long as the sum of the portion of the Property owned
by the Developer and any Affiliate of the Developer is subject to 15% or more of the Special Tax levy of the
District for the then current Fiscal Y ear of the District, and (ii) any Property Owner, including the Developer,
that owns any portion of such Property for which production units are not completed and sold to third parties
and that, together with Property owned by such Property Owner and together with Property owned by
Affiliates of such Property Owner, is subject to 15% or more of the Special Tax levy of the District for the
then current Fiscal Year of the District; provided, however, that the term shall not include any Property
Owner that would otherwise qualifY as a Major Developer if such Property Owner has assumed the
obligations hereunder pursuant to Section 5.
"National Repository" means any Nationally Recognized Municipal Securities Information
Repository for purposes of the Rule. The Nationally Recognized Municipal Securities Information
G-16
Repository for purposes of the Rule are identified in the Securities and Exchange Commission website located
at sec.gov/inJo/municipal/nrmsir. him.
"Official Statement" means the Official Statement, dated
, 2003, relating to the 2003
Bonds.
"Participating Underwriter" means Stone & Youngberg LLe.
"Person" means an individual, a corporation, a partnership, a limited liability company, an
association, a joint stock company, a trust, any unincorporated organization or a government or political
subdivision thereof.
"Property" means (i) the real property within the boundaries ofthe District that is owned, as of the
date of this Disclosure Agreement, by the Developer, or any Affiliate of the Developer, or (ii) any real
property within the boundaries of the District subsequently purchased by the Developer or any Affiliate of
the Developer.
"Property Owner" means any Person that owns a fee interest in any Property.
"Report Dates" means, collectively, the First Report Dates and the Second Report Dates.
"Report Period" means, with respect to a Semi-Annual Report due on the First Report Date, the last
six months of the Developer's fiscal year (which fiscal year currently ends November 30 of each year) just
ended, and with respect to a Semi-Annual Report due on the Second Report Date, the first six months of the
Developer's then current fiscal year (which fiscal year currently ends November 30 of each year).
"Repository" means each National Repository and each State Repository.
"Rule" means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as the same may be amended from time to time.
"Second Report Date" means the date in each year that is nine months after the end of the
Developer's fiscal year (which currently ends November 30, of each year), which Second Report Date, as of
the date of this Disclosure Agreement, is July 31 of each year, commencing July 31, 2004.
"Second Report Period" means with respect to a Semi-Annual Report due on the Second Report Date,
the first six months of the Developer's current fiscal year (which fiscal year currently ends November 30 of
each year).
"Semi-Annual Report" means any Semi-Annual Report provided by the Developer pursuant to, and
as described in, Sections 2 and 3 hereof.
"State Repository" means any public or private repository or entity designated by the State of
California as a state repository for the purpose of the Rule and recognized as such by the Securities and
Exchange Commission. As of the date of this Disclosure Agreement, there is no State Repository.
Section 2. Provision of Semi-Annual Reoorts. (a) So long as the Developer's obligations hereunder
have not been terminated pursuant to Section 6, (i) the Developer shall prepare a Semi-Annual Report not
later than January 31, and July 31 of each year, and (ii) not later than February 15 and August 15 (15 days
after the Report Date), the Developer shall, or, upon reccipt ofthe Semi-Annual Report by the Dissemination
Agent, the Dissemination Agent shall, provide to each Repository, the Authority, the Fiscal Agent (if the
Fiscal Agent is not the Dissemination Agent), the District and the Participating Underwriter a Semi-Annual
Report which is consistent with the requirements of Section 3 of this Disclosure Agreement, commencing
with the first Semi-Annual Report Date to occur January 31, 2004. The Semi-Annual Report may be
submitted as a single document or as separate documents comprising a package, and may include by reference
other information as provided in Section 3 hereof; provided, however, that the audited financial statements
of the Developer may be submitted separately from the balance of the Semi-Annual Report that is to be
provided no later than the First Report Date, and later than the date required above for the filing of such Semi-
Annual Report if not available by that date. If the Developer's fiscal year changes, it shall give notice of such
change in the same manner as for a Listed Event under Section 4(b) hereof.
G-17
(b) If by February 15 or August 15 (15 days after a Report Date), the Fiscal Agent has not
received a copy of the Semi-Annual Report (in a form suitable for reporting to the Repositories), the Fiscal
Agent shall notifY the Developer and the Dissemination Agent of such failure to receive the Semi-Annual
Report. The Developer shall provide a written certification with, or as part of, each Semi-Annual Report
furnished to the Fiscal Agent to the effect that such Semi-Annual Report constitutes the Semi-Annual Report
required to be furnished by it hereunder. The Fiscal Agent and the Dissemination Agent may conclusively
rely upon such certification of the Developer and shall have no duty or obligation to review such Semi-
Annual Report.
(c) If the Fiscal Agent is unable to verifY that a Semi-Annual Report has been provided to the
Repositories by the date required in subsection (a), the Fiscal Agent shall send a notice to the Municipal
Securities Rulemaking Board, the appropriate State Repository, if any, the Dissemination Agent and the
Participating Underwriter in substantially the form attached as Exhibit A.
(d) The Dissemination Agent shall:
(i) determine prior to each Report Date the name and address of each National
Repository and each State Repository, if any;
(ii)
herein; and
provide any Semi-Annual Report received by it to each Repository, as provided
(iii) with respect to each Semi-Annual Report received by it and provided by it to each
Repository, file a report with the Authority, the Developer, the Fiscal Agent (if the Dissemination
Agent is not the Fiscal Agent) and the Participating Underwriter certifYing that the Semi-Annual
Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided and
listing all the Repositories to which it was provided.
Section 3. Content of Semi-Annual Reoorts. The Developer's Semi-Annual Report shall contain or
incorporate by reference the following:
(a) With respect only to the Semi-Annual Report that is required to be provided no later than
each First Report Date, Financial Statements for each Major Developer (other than any Major Developer with
respect to which the Developer's obligations hereunder have been assumed in accordance with Section 5 or
terminated in accordance with Section 6 hereof). If audited Financial Statements are required to be provided,
and such audited Financial Statements are not available by the time such Semi-Annual Report is required to
be filed pursuant to Section 2(a) hereof, such Semi-Annual Report shall contain unaudited Financial
Statements, and the audited Financial Statements shall be filed as a supplement or amendment to the Semi-
Annual Report when they become available. Such Financial Statements shall be for the most recently ended
fiscal year for the entity covered thereby.
(b) With respect to all Semi-Annual Reports, the following information with respect to each
Major Developer (other than any Major Developer with respect to which the Developer's obligations
hereunder have been assumed in accordance with Section 5 or terminated in accordance with Section 6
hereof) for the First Report Period or Second Report Period, as applicable; provided, that, if such information
is required from the Developer as to another Major Developer which is not an Affiliate of the Developer, the
Developer shall only be required to provide such information that it has actual knowledge of;
(i) If information regarding such Major Developer has not previously been included in
a Semi-Annual Report or in the Official Statement, the Development Plan of such Major Developer
or, if information regarding such Major Developer has previously been included in a Semi-Annual
Report or in the Official Statement, a description of the progress made in the Development Plan of
such Major Developer since the date of such information and a description of any material changes
in such Development Plan and the causes or rationale for such changes.
(ii) If information regarding such Major Developer has not previously been included in
a Semi-Annual Report or in the Official Statement, the Financing Plan of such Major Developer or,
if information regarding such Major Developer has previously been included in a Semi-Annual
Report or in the Official Statement, a description of any material changes in the Financing Plan of
such Major Developer and the causes or rationale for such changes.
G-18
(iii) A description or update of the status of tentative and final maps recorded within the
District relating to such Major Developer.
(iv) The number of building permits issued with respect to any of such Major
Developer's Property during the six month period ending on the last day of the applicable Report
Period as well as the number of building permits issued with respect to such Major Developer's
Property included in each previous Semi-Annual Report, set forth opposite such previous reporting
period.
(v) A description of how many acres of Property were owned by such Major Developer
as of the end of the Report Period covered by such Semi-Annual Report, how many acres of such
Major Developer's Property have production units completed and sold to third parties, (i) with
respect to the Property planned for park/open space have been developed with a park or designated
as open space on a final residential tract map and (ii) with respect to the Property planned for
infrastructure use, has the infrastructure planned for such property constructed, during the applicable
Report Period and how many acres of such Major Developer's Property had not reached such level
of development described in clauses (i) and (ii) above.
(vi) A description of any sales of portions of such Major Developer's Property during
the applicable Report Period, including the identification of each buyer (other than individual home
buyers) and the number of residential lots and other acres sold; provided, however, that sales of five
or fewer acres may be aggregated for the purpose of such description.
(vii) a statement as to whether or not such Major Developer and all of its Affiliates paid,
prior to their becoming delinquent, all Special Taxes, property taxes, assessments and special taxes
levied on the Property owned by such Major Developer and such Affiliates that would have been
delinquent had they not been paid by the preceding December 10 or April 10, respectively, and if
such Major Developer or any of such Affiliates is delinquent in the payment of such Special Taxes,
property taxes, assessments or special taxes levied on the Property, a statement identifYing each
parcel that is so delinquent, specifYing the amount of each such delinquency and describing any plans
to resolve such delinquency.
(viii) Unless disclosed in the Official Statement or a prior Semi-Annual Report, any
material changes in the information relating to the Developer, any Major Developer and/or the
Property owned by the Developer or such Major Developer contained in the Official Statement under
the caption "BONDOWNERS' RISKS -- Endangered and Threatened Species" and "-- Hazardous
Substances."
(ix) An update of the status of any previously reported Listed Event described in Section
4 hereof and information regarding Listed Events, if any, required to be reported pursuant to Section
4 hereof.
(x) Unless disclosed in the Official Statement or a prior Semi-Annual Report, any
material change in the legal structure or organization of a Major Developer.
(xi) The filing and service of process on such Major Developer of a lawsuit against such
Major Developer seeking damages, or a judgment in a lawsuit against the Major Developer, either
of which could have a significant impact on the Major Developer's ability to pay Special Taxes or
to sell or develop all or any portion of the Major Developer's Property.
(xii) If applicable, a statement that a Property Owner no longer meets the definition of
Major Developer, which statement shall be provided in the mannerrequired for Semi-Annual Reports
by the next succeeding date on which a Semi-Annual Report would have been filed unless such fact
has previously been reported under Section 3 or Section 4.
(c) In addition to any ofthe information expressly required to be provided under paragraphs (a)
and (b) of this Section, the Developer 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.
G-19
Major Developers that are Affiliates of each other may, but are not required to, file a single Semi-
Annual Report covering all such entities. Any or all of the items listed in this Section 3 may be included by
specific reference to other documents which have been submitted to each of the Repositories or the Securities
and Exchange Commission. If the document included by reference is a final official statement, it must be
available from the Municipal Securities Rulemaking Board. The Developer shall clearly identifY each such
other document so included by reference. If a Property Owner which was a Major Developer no longer
meets the definition of Major Developer, no Semi-Annual Report shall be required to be filed by or with
respect to such Property Owner under this Section 3; provided, however, that notice that the Property Owner
does not meet the definition of Major Developer shall be provided in the manner required for Semi-Annual
Reports by the next succeeding date on which a Semi-Annual Report would have been filed unless such fact
has previously been reported under Section 3 or Section 4.
Section 4. Reporting of Listed Events. (a) Pursuant to the provisions of this Section 4, the
Developer shall promptly give, or cause to be given notice of the occurrence of any of the following events
with respect to each Major Developer (other than any Major Developer with respecl to which the Developer's
obligations hereunder have been assumed in accordance with Section 5 or terminated in accordance with
Section 6 hereof); provided, that, if such information is required from the Developer as to another Major
Developer which is not an Affiliate of the Developer, the Developer shall only be required to provide such
information that it has actual knowledge of:
(i) Unless disclosed in the Official Statement or a prior Semi-Annual Report, any
conveyance by such Major Developer of any of its Property to an entity that is not an Affiliate of
such Major Developer, the result of which conveyance is to cause the transferee to become a Major
Developer. In addition, if the transferee has assumed any obligations of Developer under this
Disclosure Agreement pursuant to Section 5 hereof, a copy of the executed Assumption Agreement
shall be attached to the Notice.
(ii) Any failure of such Major Developer, or any Affiliate of such Major Developer, to
pay when due general property taxes, special taxes or assessments with respect to its Property.
(iii) Any denial or termination of credit, any denial or termination of, or default under,
any line of credit or loan or any other loss of a source of funds expected to be used for the Project
that would have a material adverse affect on such Major Developer's most recently disclosed
Financing Plan or Development Plan or on the ability of such Major Developer, or any Affiliate of
such Major Developer, to pay Special Taxes within the District when due.
(iv) The occurrence of an Event of Bankruptcy with respect to such Major Developer,
or any Affiliate of such Major Developer, that, in the reasonable judgment of such Major Developer;
would have a material adverse affect on such Major Developer's most recently disclosed Financing
Plan or Development Plan or on the ability of such Major Developer, or any Affiliate of such Major
Developer that owns any portion of the Property, to pay Special Taxes within the District when due.
(v) Any significant amendments to land use entitlement approvals for such Major
Developer's Property, if such amendments, in the reasonable judgment of such Major Developer,
would prevent or significantly delay the implementation of such Major Developer's Development
Plan as described in the Official Statement or in any previous Semi-Annual Report.
(vi) Any previously undisclosed governmentally-imposed preconditions to
commencement or continuation of development on such Major Developer's Property, if such
preconditions, in the reasonable judgment of such Major Developer, would prevent or significantly
delay such Major Developer's Development Plan as described in the Official Statement or in any
previous Semi-Annual Report.
(vii) Any previously undisclosed legislative, administrative or judicial challenges to
development on such Major Developer's Property, if such challenges, in the reasonable judgment of
such Major Developer, would prevent or significantly delay such Major Developer's Development
Plan as described in the Official Statement or in any previous Semi-Annual Report.
(viii) Any changes, in the reasonable judgment of such Major Developer, in the alignment,
design or likelihood of completion of significant public improvements affecting such Major
G-20
Developer's Property, including major thoroughfares, sewers, water conveyance systems and similar
facilities that, in the reasonable judgment of such Major Developer, would prevent or significantly
delay such Major Developer's Development Plan as described in the Official Statement or any
previous Semi-Annual Report.
(ix) The filing of any lawsuit against a Major Developer which, in the reasonable
judgment of such Major Developer, will adversely affect the completion of the development of
Property owned by such Major Developer, or litigation which if decided against the Major
Developer, in the reasonable judgment of the Major Developer, would materially adversely affect
the financial condition of the Major Developer.
(b) Whenever the Developer obtains knowledge of the occurrence of a Listed Event, the
Developer shall promptly notifY the Dissemination Agent, the Fiscal Agent, the Participating Underwriter,
and the District in writing. The Dissemination Agent shall report the occurrence pursuant to subsection (c)
below. The Developer shall provide the Dissemination Agent with a form of not ice of such event in a format
suitable for reporting to the Municipal Securities Rulemaking Board and each State Repository, if any.
(c) If the Dissemination Agent has received notice of a Listed Event, the Dissemination Agent
shall file a notice of such occurrence with the Municipal Securities Rulemaking Board and each State
Repository and shall provide a copy of such notice to the Participating Underwriter described on Exhibit B
attached hereto to the Dissemination Agent and to the District. In the event there is no Dissemination Agent,
the Fiscal Agent shall file the notice required in clause (b) if the form of notice is provided to the Fiscal Agent
by the Developer, and the Developer shall compensate the Fiscal Agent for providing such notices.
Section 5. Assumption of Obligations. If any portion of the Property owned by the Developer, or
any Affiliate of the Developer, is conveyed to a Person such that, upon such conveyance, such Person will
be a Major Developer, all of the obligations of the Developer hereunder with respect to the Property owned
by such Major Developer and its Affiliates shall be assumed by such Major Developer or by an Affiliate. In
order to effect such assumption, such Major Developer or Affiliate thereof shall enter into an Assumption
Agreement. A copy of the Assumption Agreement shall be provided to the Participating Underwriter
described on Exhibit B attached hereto and to the Dissemination Agent, the Fiscal Agent and the District as
set forth in Section 4(i) in the manner provided in 4(b) and (c).
Section 6. Termination ofReoorting Obligation. The Developer's obligations under this Disclosure
Agreement with respect to a Major Developer (including its obligations with respect to itself as a Major
Developer) shall terminate upon the earliest to occur of (a) the date on which such Major Developer is no
longer a Major Developer, as defined herein, (b) the date on which the Developer's obligations with respect
to such Major Developer are assumed under an Assumption Agreement entered into pursuant to Section 5
hereof, or (c) the date on which all Special Taxes levied on any Property owned by such Major Developer
and its Affiliates are paid or prepaid in full; provided, however, that upon the occurrence of any of the events
described in clause (a), (b) or (c) with respect to a Major Developer, the Developer's obligations hereunder
with respect to each other Major Developer, if any, not previously terminated shall remain in full force and
effect. All of the Developer's obligations under this Disclosure Agreement shall terminate, except as
provided in Section II hereof, upon the earliest to occur of (x) the date on which no Property Owner is a
Major Developer, (y) the date on which (i) the Developer is no longer a Major Developer, and (ii) the
Developer no longer has any obligations under this Disclosure Agreement with respect to any remaining
Property as a result of such obligations having been assumed under one or more Assumption Agreements
entered into pursuant to Section 5 hereof, or (z) the date on which all of the 2003 Bonds have been legally
defeased, redeemed, or paid in full. Upon the occurrence of any such termination prior to the final maturity
of the 2003 Bonds, the Developer shall give notice of such termination in the same manner as for a Listed
Event under Section 4 hereof.
Section 7. Dissemination Agent. The initial Disseminalion Agent shall be U.S. Bank National
Association. The Developer may, from time to time, appoint or engage a Dissemination Agent to assist it in
carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination
Agent, wilh or without appointing a successor Dissemination Agent. The Dissemination Agent may resign
by providing thirty (30) days' written notice to the Developer, the Authority and the Fiscal Agent (if the
Fiscal Agent is not the Dissemination Agent) such resignation to become effective upon acceptance of the
appointment by a successor Dissemination Agent. Upon receiving notice of such resignation, the Developer
shall promptly appoint a successor Dissemination Agent by an instrument in writing, delivered to the Fiscal
G-21
Agent. If no appointment of a successor Dissemination Agent shall be made pursuant to the foregoing
provisions of this Section within forty-five (45) days after the Dissemination Agent shall have given to the
Developer, the Authority and the Fiscal Agent written notice of its resignation, the Dissemination Agent may
apply to any court of competent jurisdiction to appoint a successor Dissemination Agent. Said court may
thereupon after such notice, if any, as such court may deem proper, appoint a successor Dissemination Agent.
The Developer shall provide the Authority and the Fiscal Agent with written notice of the identity of any
successor Dissemination Agent appointed or engaged by the Developer. The Dissemination Agent shall have
no duty to prepare the Semi-Annual Report nor shall the Dissemination Agent be responsible for filing any
Semi-Annual Report not provided to it by the Developer in a timely manner and in a form suitable for filing.
Ifthe Dissemination Agent is other than the Fiscal Agent, the Developer shall be responsible for paying the
fees and expenses of the Dissemination Agent for its services provided hereunder in accordance with its
schedule offees as amended from time to time. Ifthe Dissemination Agent is the Fiscal Agent, the District
shall be responsible for paying the fees and expenses of the Dissemination Agent for its services provided
hereunder in accordance with its agreement with the District.
Section 8. Amendment: Waiver. Notwithstanding any other provision of this Disclosure Agreement,
the Developer, the Fiscal Agent and the Dissemination Agent may amend this Disclosure Agreement (and
the Fiscal Agent and the Dissemination Agent shall agree to any amendment so requested by the Developer,
provided that the Fiscal Agent or the Dissemination Agent shall not be obligated to enter into such
amendment that modifies or increases its duties and obligations hereunder), and any provision of this
Disclosure Agreement may be amended or waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to Sections 2(a), 3 or4(a) hereof 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 (as defined in the Rule) with respect to the
2003 Bonds, or type of business conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of Bond
Counsel approved by the Authority, have complied with the requirements of the Rule at the time of the
primary offering of the 2003 Bonds, after taking into account any amendments or interpretations ofthe Rule,
as well as any change in circumstances; and
(c) the proposed amendment or waiver either (i) is approved by owners of the 2003 Bonds in
the manner provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the
consent of owners of the 2003 Bonds, or (ii) does not, in the opinion of Bond Counsel approved by the
Authority, materially impair the interests of owners or beneficial owners of the 2003 Bonds.
If the financial information or operating data contained within the Financial Statements to be
provided in the Scmi-Annual Report or amendment or supplement thereto is amended pursuant to the
provisions hereof, the first Semi-Annual Report or amendment or supplement thereto containing the operating
data or financial information in accordance with such amendment shall explain, in narrative form, the reasons
for the amendment and the impact of the change in the type of operating data or financial information being
provided.
As required by the Rule, if an amendment is made to the provisions hereof specifYing the accounting
principles to be followed in preparing Financial Statements, the financial information for the year in which
the change is made shall present a comparison between the Financial Statements or information prepared on
the basis ofthe new accounting principles and those prepared on the basis of the former accounting principles.
The comparison shall include a qualitative discussion of the differences in the accounting principles and the
impact of the change in the accounting principles on the presentation of the Financial Statements, in order
to enable investors to evaluate the ability of the Major Developer to generally meet its obligations. To the
extent reasonably feasible, the comparison shall be quantitative. A notice of the change in the accounting
principles shall be sent to the Repositories in the same manner as for a Listed Event under Section 4 hereof.
Section 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent
the Developer from disseminating any other information, using the means of dissemination set forth in this
Disclosure Agreement or any other means of communication, or including any other information in any Semi-
Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this
Disclosure Agreement. If the Developer chooses to include any information in any Semi-Annual Report or
notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure
G-22
Agreement, the Developer shall have no obligation under this Disclosure Agreement to update such
information or include it in any future Semi-Annual Report or notice of occurrence of a Listed Event.
Section 10. Default. In the event of a failure of the Developer or the Fiscal Agent to comply with
any provision of this Disclosure Agreement, the Fiscal Agent at the written direction of the Participating
Underwriter or the owners of at least 25% aggregate principal amount of Outstanding 2003 Bonds, upon
receipt ofindenmification satisfactory to the Fiscal Agent shall, or any owner or beneficial owner ofthe 2003
Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific
performance by court order, to cause the Developer, the Dissemination Agent or the Fiscal Agent, as the case
may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure
Agreement shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole remedy
under this Disclosure Agreement in the event of any failure of the Developer, the Dissemination Agent or the
Fiscal Agent to comply with this Disclosure Agreement shall be an action to compel performance.
Section 11. Duties. Immunities and Liabilities of Fiscal Agent and Dissemination Agent. Neither
the Fiscal Agent nor the Dissemination Agent (if other than the Fiscal Agent or the Fiscal Agent in its
capacity as Dissemination Agent) shall have any responsibility for the content of any Semi-Annual Report.
The Dissemination Agent (if other than the Fiscal Agent or the Fiscal Agent in its capacity as Dissemination
Agent) and the Fiscal Agent shall have only such duties as are specifically set forth in this Disclosure
Agreement. The Developer agrees to indenmify and save each of the Fiscal Agent and the Dissemination
Agent, and their respective officers, directors, employees and agents, harmless against any loss, expense and
liabilities which it or they may incur arising out of or in the exercise or performance of their powers and
duties hereunder, including the reasonable costs and expenses (including attorneys fees) of defending against
any claim of liability with counsel approved by the Developer, which approval shall not be unreasonably
withheld, but excluding losses, expenses and liabilities due to the Fiscal Agent's or the Dissemination Agent's
negligence, willful misconduct or failure to comply with any provision of this Disclosure Agreement. The
obligations of the Developer under this Section shall survive resignation or removal of such Dissemination
Agent and payment of the 2003 Bonds and the resignation or removal of the Trustee. Any action for which
indenmification is sought from the Developer shall be deemed an action on a contract (this Agreement) for
which the provisions of Section 18 are applicable. All ofthe protections from liability applicable to the Fiscal
Agent shall apply to the Dissemination Agent. The Dissemination Agent and Fiscal Agent shall have no
responsibility for the preparation, review, form or content of any Semi-Annual Report or any notice of a
Listed Event. No provision of this Disclosure Agreement shall require or be construed to require the
Dissemination Agent or Fiscal Agent to interpret or provide an opinion concerning any information disclosed
hereunder. Information disclosed hereunder by the Dissemination Agent may contain such disclaimer
language concerning the Dissemination Agent's responsibilities hereunder with respect thereto as the
Dissemination Agent may deem appropriate. The Dissemination Agent and Fiscal Agent may conclusively
rely on the determination of the Developer as to the materiality of any event for purposes of Section 4 hereof.
Neither the Fiscal Agent nor the Dissemination Agent make any representation as to the sufficiency of this
Disclosure Agreement for purposes of the Rule. The Developer's obligations under this Section shall survive
the termination of this Disclosure Agreement.
Section 12. Notices. Any notice or communications to or among any ofthe parties to this Disclosure
Agreement shall be given to all of the following and may be given as follows:
If to the Developer:
KB Home Coastal
Telephone:
Telecopier:
Attention:
, Chief Financial Officer
If to the Community
Facilities District:
Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill)
43200 Business Park Drive
Temecula, California 92590
Attention: Finance Director
Telephone: 909/694-6440
Telecopier: 909694-6499
G-23
If to the
Dissemination
If to the
Fiscal Agent:
If to the
Participating
Underwriter:
U.S. Bank National Association
550 South Hope Street, Suite 500
Los Angeles, California 90071
Telephone: 213/533-8712
Telecopier: 213/533-8729
U.S. Bank National Association
550 South Hope Street, Suite 500
Los Angeles, California 90071
Telephone: 213/533-8712
Telecopier: 213/533-8729
Stone & Youngberg LLC
One Ferry Building
San Francisco, California 94111
Telephone: 415/445-2300
Telecopier: 415/445-2395
Attention: Municipal Research Department
Section 13. Beneficiaries. The Participating Underwriter and the owners and beneficia] owners from
time to time of the 2003 Bonds shall be third party beneficiaries under this Disclosure Agreement. This
Disclosure Agreement shall inure solely to the benefit of the Developer, the Fiscal Agent, the Dissemination
Agent, the Participating Underwriter and owners and beneficial owners from time to time of the 2003 Bonds,
and shall create no rights in any other person or entity. Any action by a beneficiary of this Agreement shall
be subject to Section 18 below.
Section 14. Counteroarts. This Disclosure Agreement may be executed in several counterparts, each
of which shall be an original and all of which shall constitute but one and the same instrument.
Section 15. Merger. Any person succeeding to all or substantially all ofthe Dissemination Agent's
corporate trust business shall be the successor Dissemination Agent without the filing of any paper or any
further act.
Section 16. Severability. In case anyone or more of the provisions contained herein shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision hereof.
Section 17. State of California Law Governs. The validity, interpretation and performance of this
Disclosure Agreement shall be governed by the laws of the State of California.
Section 18. Attornevs' Fees. In the event of the bringing of any action or suit by any Party
against another Party arising out of this Agreement, the Party in whose favor final judgment shall
be entered shall be entitled to recover from the other Party all costs and expenses of suit, including
reasonable attorneys' fees.
G-24
IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agreement as
of the date first above written.
KB HOME COASTAL, INC.,
a California corporation
By:
Its:
U.S. BANK NATIONAL ASSOCIATION,
as Fiscal Agent
By:
Authorized Officer
U.S. BANK NATIONAL ASSOCIATION,
as Dissemination Agent
By:
Authorized Officer
G-25
EXHIBIT A
NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD
OF FAILURE TO FILE SEMI-ANNUAL REPORT
Name of Obligated Person:
KB Home Coastal, Inc., a California corporation
Name of Bond Issue:
Temecula Public Financing Authority
Community Facilities District No. 03-1 (Crowne Hill)
Special Tax Bonds, Series 2003-A
Date ofIssuance:
,2003
NOTICE IS HEREBY GIVEN that KB Home Coastal, Inc. (the "Developer") has not provided
a Semi-Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure
Agreement, dated as of June 1,2003, by and between the Developer and U.S. Bank National Association, as
Fiscal Agent and Dissemination Agent. [The Developer anticipates that the Semi-Annual Report will be filed
by .]
Dated:
,20_
U.S. BANK NATIONAL ASSOCIATION, as
Dissemination Agent, on behalf of KB Home
Coastal, Inc.
cc: Temecula Public Financing Authority
c/o City of Temecula
Stone & Youngberg LLC
G-26
-~
EXHIBIT B
PARTICIPATING UNDERWRITER
Stone & Youngberg LLC
One Ferry Building
San Francisco, California 94111
Telephone: 415/445-2300
Telecopier: 415/445-2395
Attention: Municipal Research Department.
G-27
ITEM 23
APPROVAL
CITY ATTORNEY
DIRECTOR OF FIN
CITY MANAGER
FROM:
CITY OF TEMECULA
AGENDA REPORT
City Manager/Ci~~i1
Debbie Ubnosk~irector of Planning
TO:
DATE:
June 24, 2003
SUBJECT: Request Zone Change from L-1 to L-2 (PA02-0372), and Tentative Tract Map to
create seven residential lots ranging from .5 to .82 acres in lot area (PA02-0371).
PREPARED BY:
Don Hazen, Principal Planner
The applicant has requested this item be continued off calendar. This item will be re-noticed.
ATTACHMENTS:
1. Applicants request for continuance letter dated June 13, 2003
P:\PLANNING\Hazend\Staff Rpt.PA02-0371-72.continuance request.doc
1
ATTACHMENT NO.1
APPLICANTS REQUEST FOR CONTINUANCE LETTER DATED JUNE 13, 2003
P:\PLANNING\Hazend\Staff Rpt. PA02.0371-72-continuance request.doc
2
M -lVIGi
MARKHAM DEVELOPMENT MANAGEMENT GROUP, INC.
June 13, 2003
Ms. Debbie Ubnoske
City ofTemecula Planning Department
43200 Business Park Drive
P.O. Box 9033
Temecula, CA 92589-9033
v'U-t
./6'
<'00.;
Subject:
Request for re-noticing - City Council hearing
PA02-0372
Marchand #1153
Dear Debbie,
This project has been noticed for City Council on June 24th. We are requesting the city
re-notice this hearing to July 22, 2003, due to personal and unforeseen circumstances and
scheduling conflicts on my behalf, I will be out of town on both June 24th and July 8th.
We are offering to pay for this case to be re-noticed and for the signage to be changed. I
appreciate your consideration in this matter.
ent Managernent Group, Inc.
cc: D. Hazen, City of Temecula
C. Way, Marchand-Way Development
41635 Enterprise CilCle North, Sufte B
Temecula, CA 92590-5614
(909) 296-3466
Fax: (909) 296-3476
www.mar1<hamdmg.com
ITEM 24
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINA
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/City Council
Debbie Ubnoske~tor of Planning
DATE:
June 24, 2003
SUBJECT:
Development Code Amendment (Planning Application PA03-0110 - Secondary
Dwelling Unit Approval Authority
PREPARED BY:
David Hogan, Principal Planner
RECOMMENDATION: Introduce and read by title only an ordinance entitled:
ORDINANCE NO. 03-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMECULA AMENDING CHAPTER 17 OF THE TEMECULA
MUNICIPAL CODE TO MODIFY THE PROCEDURES FOR
APPROVING SECONDARY DWELLING UNITS (PLANNING
APPLICATION PA03-0110)
BACKGROUND: The Legislature amended State Law last year to require local governments to
make the approval of secondary dwelling units ministerial or non-use permit approvals.
Assembly Bill (AB) 1866 also required local jurisdictions to amend their local ordinances by July
1, 2003. The purpose of this amendment is to comply with the changed requirements in AB
1866. Specifically, this proposed code amendment would do the following:
. Add a line to Table 17.03.010 - Approval Authority, which indicates thaI secondary
dwelling units will be approved administratively without a public hearing.
. Modify Section 17.06.050.L to stale that no discretionary approval will be required for
secondary dwelling units. This section is also being reorganized to make the provisions
easier to understand and implement. No other substantive changes are proposed to this
Section.
. Add a definition of Secondary Dwelling Unit to Chapter 17.34.
This item was presented to the Planning Commission on May 23, 2003. Following the staff
report and Commission questions, the Planning Commission unanimously recommended that
the City Council approve the proposed ordinance changes. The Planning Commission's only
questions focused on whether or not the allowable size for secondary dwelling units was being
changed. The proposed ordinance amendment is not changing the allowable sizes for
secondary dwelling units. A copy of the proposed ordinance is included in Attachment NO.1.
The current second unit provisions are included in Attachment NO.3.
R:\Ordinances\Second Unit 2\Agenda Report cC.doc
ENVIRONMENTAL DETERMINATION: The project is the modification of local standards to
conform to the requirements of State Law. Section 21080.17 of the Public Resources Code
exempts the adoption of local ordinances to implement the provisions of Sections 65852.1 and
65852.2. These sections regulate the review and approval of secondary dwelling units. As a
result, the adoption of this ordinance is exempt from the requirements of California
Environmental Quality Act.
FISCAL IMPACT:
No fiscal impact is anticipated.
Attachments
1. Proposed Ordinance - Page 3
2. PC Resolution - Page 7
3. Current Secondary Dwelling Unit Standards - Page 8
A:\Ordinances\Second Unit 2\Agenda Report cc.doc 2
ATTACHMENT NO.1
PROPOSED ORDINANCE NO. 03-_
R:\Ordinances\Second Unit 2\Agenda Report cc.doc 3
ORDINANCE NO. 03-_
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMECULA AMENDING CHAPTER 17 OF THE TEMECULA
MUNICIPAL CODE TO MODIFY THE STANDARDS AND
PROCEDURES FOR APPROVING SECONDARY DWELLING
UNITS (PLANNING APPLICATION PA03-0110)
WHEREAS, Section 65800 of the Government Code provides for the adoption and
administration of zoning laws, ordinances, rules and regulations by cities to implement such
general plans as may be in effect in any such city; and
WHEREAS, the State Legislature approved and the Governor signed Assembly Bill
1866 that further restricted the ability of cities to regulate secondary dwelling units;
WHEREAS, to comply with the State's modified requirement, the City is required modify
the Municipal Code;
WHEREAS, the Planning Commission held duly noticed public hearing on May 21,
2003, and recommended that the City Council approve the attached amendments; and
WHEREAS, this Ordinance complies with all the applicable requirements of State law
and local ordinances; and,
WHEREAS, notice of the proposed Ordinance was posted at City Hall, Temecula
Library, Pujol Street Community Center, and the Temecula Valley Chamber of Commerce; and,
WHEREAS, the City Council has held a duly noticed public hearing on June 24, 2003 to
consider the proposed amendments to the Temecula Municipal Code.
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. The City Council of the City of Temecula hereby amends Table 17.03.010
of the Temecula Municipal Code as follows.
A. Add the following line to the Table.
Application
Secondary dwelling unit
Admin.
Approval
X4
Planning
Director
Planning
Commission
City
Council
B. Add Footnote Number 4 to read as follows: "4. State law requires the
administrative consideration of secondary dwelling units. These applications can not be
promoted to the planning commission."
R:\Ordinances\Second Unit 2\Agenda Report cc.doc 4
Section 2. The City Council of the City of Temecula hereby amends Section
17.05.020.6 to read as follows: 'When Required. Administrative review is permitted for
applications for minor exceptions, temporary uses, secondary dwelling units, and for minor
modifications to approved development plans and conditional use permits that were previously
approved pursuant to Chapter 17.05."
Section 3.
The City Council hereby amends Section 17.06.050.L to read as follows:
"Secondary Dwelling Units. Secondary dwelling units are permitted in all residential
zoning districts where there is an existing owner-occupied single-family detached
dwelling. In accordance with state law, a secondary 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. Secondary dwelling units shall comply with the following requirements:
1. A secondary dwelling unit shall have a floor area between four hundred (400)
and one thousand two hundred (1,200) square feet.
2. The secondary dwelling shall be compatible with the design of the primary
dwelling and the surrounding neighborhood in terms of height, bulk and mass,
landscaping, and architectural materials.
3. The secondary dwelling unit shall be provided with off-street parking in
accordance with the off-street parking standards in Chapter 17.24.
4. The application for the second unit permit must be signed by the owner of the
parcel of land and the primary dwelling.
5. A secondary dwelling unit shall not be sold, but may be rented. The property
owner must occupy either the primary residence or the secondary dwelling unit."
Section 4. The City Council of the City of Temecula hereby amends Section 17.34
by adding a definition of secondary dwelling unit to read as follows: ''''Secondary dwelling unit"
means an additional complete dwelling unit on a lot with an existing single family residence that
provides independent living facilities for one or more persons."
Section 5. Severability. The City Council hereby declares that the provisions of this
Ordinance are severable and if for any reason a court of competent jurisdiction shall hold any
sentence, paragraph, or section of this Ordinance to be invalid, such decision shall not affect the
validity of the remaining parts of this Ordinance.
Section 6. Environmental Compliance. The City Council hereby finds that the
modification of the City's standards for the processing of secondary unit permits is statutorily
exempt from CEQA pursuant to Section 15282, Other Statutory Exemptions, because this
ordinance conforms the local code with the provisions of State Planning and Zoning Law
concerning the adoption of ordinances regulating secondary dwelling units. As a result, the City
Council determines that no further environmental analysis is required.
Section 7. Notice of Adoption. The City Clerk shall certify to the adoption of this
Ordinance and shall cause the same to be published as required by law.
R:\Ordinances\Second Unit 2\Agenda Report cc.doc 5
PASSED, APPROVED AND ADOPTED this 24th day of June 2003.
Jeffrey E. Stone, Mayor
ATTEST:
Susan W. Jones, CMC
City Clerk
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, CMC, City Clerk of the City of Temecula, do hereby certify that the
foregoing Ordinance No. 03-_ was duly introduced and placed upon its first reading at a
regular meeting of the City Council on the 24'h day of June, 2003 and that thereafter, said
Ordinance was duly adopted and passed at a regular meeting of the City Council on the
_th day of , 2003, by the following vote:
NOES:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
AYES:
ABSENT:
Susan W. Jones, CMC
City Clerk
R:\Ordinances\Second Unit 2\Agenda Report cc.doc 6
ATTACHMENT NO.2
PLANNING COMMISSION RESOLUTION NO. 2003-035
R:\Qrdinances\Second Unit 2\Agenda Report cC.doc 7
PC RESOLUTION NO. 2003-035
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF TEMECULA RECOMMENDING THAT THE CITY
COUNCIL APPROVE AN ORDINANCE ENTITLED "AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMECULA AMENDING CHAPTER 17 OF THE TEMECULA
MUNICIPAL CODE TO MODIFY THE PROCEDURES FOR
APPROVING SECONDARY DWELLING UNITS (PLANNING
APPLICATION PA03-0110)"
WHEREAS, on November 9,1993, the City Council of the City of Temecula adopted the
General Plan; and
WHEREAS, on January 25, 1995, the City Council of the City of Temecula adopted the
City's Development Code; and
WHEREAS, the State Legislature approved and the governor signed Assembly Bill 1866
into law modifying how local governments review and approve applications for secondary
dwelling units; and
WHEREAS, the Legislature amended State Law requiring local governments to modify
the local standards second dwelling units to conform to the requirements of Assembly Bill 1866;
and
WHEREAS, the Planning Commission considered the proposed amendment on May 21,
2003, at a duly noticed public hearing as prescribed by law, at which time the City staff and
interested persons had an opportunity to, and did testify either in support or opposition to this
matter;
NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF TEMECULA
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Approval. That the City of Temecula Planning Commission hereby
recommends that the City Council adopt an ordinance amending the requirements for
secondary dwelling units substantially in the form attached to this resolution as Exhibit A.
Section 2. Environmental Compliance. The project is the modification of local
standards to conform to the requirements of State Law regarding secondary dwelling units.
Section 21080.17 of the Public Resources Code exempts the adoption of local ordinances to
implement the provisions of Sections 65852.1 and 65852.2 regulating the construction of
secondary dwelling units. As a result, the Planning Commission recommends that the City
Council make a determination that the adoption of this ordinance is exempt from the
requirements of California Environmental Quality Act.
R:IOrdinanceslSecond Unit 21PC RESOLUTION. doc
Section 3. PASSED, APPROVED AND ADOPTED by the City of Temecula
Planning Commission this 21 sl day of May 2003.
John Telesio, Co-Chairperson
ATTEST:
Debbie Ubnoske, Secretary
[SEAL)
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE ss
CITY OF TEMECULA
I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify
that PC Resolution No. 2003-035 was duly and regularly adopted by the Planning Commission
of the of the City of Temecula at a regular meeting thereof held on the 21 sl day of May, 2003, by
the following vote:
AYES:
4
PLANNING COMMISSIONERS:
Guerriero, Mathewson, Olhasso,
Telesio
NOES:
o
PLANNING COMMISSIONERS:
PLANNING COMMISSIONERS:
None
ABSENT:
Chiniaeft
ABSTAIN:
o
PLANNING COMMISSIONERS:
None
Debbie Ubnoske, Secretary
R:IOrdinanceslSecond Unil21PC RESOLUTION.doc
ATTACHMENT NO.3
CURRENT CODE PROVISIONS
R:\Ordinances\Second Unit 2\Agenda Report cc.doc 8
CURRENT ORDINANCE REQUIREMENTS
SECTION 17.06.050.L
Secondary Dwelling Units. In accordance with state law, a second 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. A secondary dwelling unit shall require a
development plan and shall meet the following requirements:
1. Secondary dwelling units may be permitted in all residential zoning districts
where there is an existing owner-occupied single-family detached dwelling. The
property owner must occupy either the primary residence or the secondary
dwelling unit.
2. A second unit shall not be sold, but may be rented.
3. An attached second unit on a residential lot shall have a floor area between four
hundred and one thousand two hundred square feet.
4. A detached second unit on a residential lot shall have a floor area between four
hundred and one thousand two hundred square feet.
5. The application for the second unit must be signed by the owner of the parcel of
land and the primary dwelling.
6. The secondary unit shall be compatible with the design of the primary dwelling
and the surrounding neighborhood in terms of height, bulk and mass,
landscaping, and architectural materials.
7. The secondary dwelling unit shall be provided with off-street parking in
accordance with the off-street parking standards in Chapter 17.24.
R:\Ordinances\Second Unit 2\Agenda Report cc.doc 9
ITEM 25
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINA
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/City Council
Jim O'Grady, Assistant City Manager
June 24, 2003
DATE:
SUBJECT:
Consideration of Telecommunications Master Plan
RECOMMENDATION: Receive and file this report.
BACKGROUND: At your January 14, 2003 Council meeting, Mayor Pro Tem Naggar noted
the benefits of having high-speed information systems/telecommunications infrastructure
available to our residents and businesses. Mayor Pro Tem Naggar further recommended that
City staff prepare an inventory of community-wide information systems/telecommunications
systems in the City of Temecula, and make recommendations regarding preparation of a
telecommunications master plan. The full City Council concurred with this recommendation,
and the following report has been prepared in accordance with Council direction.
Communitv Telecommunications Master Plans
As part of this investigation, staff sent a request to members of the League of California Cities,
requesting that they advise us if they had prepared a community-wide Information Infrastructure
or Telecommunications Master Plan. Fifteen cities responded, and nine of those cities advised
us that they had completed such a master plan, while two others are in the process of preparing
such a plan. A listing of these responses is listed in attachment #1.
Where possible, staff reviewed copies of those master plans to determine elements of those
plans and benefits of preparing such a plan. Staff found that these plans typically included the
following elements:
. Inventory of existing infrastructure
. Identification of stakeholders
. System architecture, including technologies used/needed
. Potential public/private partnerships
. Funding sources and strategies
. Recommendations and implementation plan
Existinq Information Infrastructure in Temecula
High speed or "broadband" Internet access can be provided through a number of methods,
including wireless, copper wire, cable modem, or fiber-optic mediums. A summary of these
methods is listed in attachment #2.
The City's residents and businesses are served by a variety of fiber-optic and wireless
providers. Verizon, the Local Exchange Carrier (LEC), is able to provide several levels of high-
R:\Ogradyj\Agenda Reports\A.genda Report - Telecommunications Master Plan, 06-24-Q3.doc
speed services to nearly all business districts in the City. In addition, Time-Warner, a
Competitive Local Exchange Carrier (CLEC), recently purchased a rnajor fiber-optic network
system from GST, the company that had installed the major fiber-optic cable in Temecula.
While this is considered a national Internet backbone system, it is possible to access this
system. For example, Guidant has recently entered into agreements with Time Warner and
installed equipment to access this system. They have done this to ensure greater reliability and
for economic reasons. Time-Warner has indicated that additional access could be provided to
other areas of the City if there is sufficient demand.
The majority of Temecula's residential areas also have access to relatively high speed Internet
through Digital Subscriber Line (DSL) service through Verizon. Such service is limited to a line
distance of three miles from a central switching office. As a result, a number of residential areas
in primarily the eastern portions of the City do not have access to this service. This has been a
source of frustration to many of those residents.
Adelphia is in the midst of upgrading their services so that they can offer digital cable as well as
cable-modem Internet service. This can offer even higher speeds than DSL in many cases, and
this upgrade is expected to be available citywide by the end of this summer. In addition to these
services, there are several wireless providers that can provide broadband Internet service to
both residential and business areas. A listing of the various broadband Internet service
providers is shown in Attachment #3.
Information Systems and GIS staff has developed a map of these systems, which is shown as
attachment #4.
ExistinQ Citv-Use Telecommunications Infrastructure
The City's Information Systems (IS) Department provides centralized management of
information infrastructure through a diverse network of copper, fiber, and wireless media. This
network is a "hub-spoke" configuration with the City Hall Data Center acting as the hub for
server and switching equipment. Plans are currently underway to establish a fiber-optic
connection between City Hall and the Community Recreation Center. This will provide
additional disaster recovery and emergency operations capabilities. Additionally, the IS and
Public Works Departments support and maintain the citywide Intelligent Transportation System,
which includes a system of cameras and sensor controls at major intersections and is
coordinated through the Traffic Engineering Department at City Hall.
DISCUSSION: High-speed Internet and telecommunication infrastructure is increasingly
seen as essential to conducting business, much like traditional infrastructure elements such as
highways, water, and sewer facilities. As such, the availability of this infrastructure is an
increasingly important business consideration. As shown in the map, Temecula has an
extensive network, and its availability should be publicized. Upon review and approval of this
report, slaff plans to publish this map on the City's website and include
infrastructure/telecommunications information in the economic development section of our
website. Developing such an inventory is also a typical component of other cities
telecommunications master plans, and is also being considered as a strategy for the 1-15
Regional Partnership project. Staff will also plan to work with our EDC and Economic Alliance
Partners to include this information on our regional economic development website and
marketing materials.
Staff also believes that we should work with Time-Warner and other high-speed providers to
expand the high-speed network in Temecula. One promising development is the ability to place
R:\Qgradyj\Agenda Reports\Agenda Report - Telecommunications Master Plan, 06-24-D3.doc
fiber-optic lines in gas lines. This technology offers the potential to place these lines with a
minimum of street cuts, and offers a potential savings of 50% or more over conventional
trenching techniques. The Gas Company is currently refining this technology and is seeking
PUC tariff authorization. Such authorization is expected later this summer.
Funding for additional studies and possibly infrastructure development is potentially available
through the Federal Economic Development Initiative (EDI) program. Staff has submitted a
request for funding under this program in the amount of $200,000.
FISCAL IMPACT: There is no fiscal impact at this time.
ATTACHMENT(S): 1) Telecommunications/Infrastructure Master Plan Survey Results.
2) Broadband Speed and Description Chart.
3) Comparison of Broadband Networks in the City of Temecula
4) Map of Broadband Facilities in the City of Temecula
R:\Ogradyj\Agenda Reports\Agenda Report. Telecommunications Master Plan, 06-24-Q3.doc
,
ATTACHMENT 1
Telecommunications/Information Infrastructure Master Plan Survey
CITY COMPLETED COSTS? LENGTH INFORMA TlON
STUDY? OF TIME TO PROVIDED?
COMPLETE?
City of Sunnyvale Yes. Recently Three options for the City in
completed an update to telecommunications were explored:
their IT Strategic Plan. regulator. service provider. &
facilitator. Master Plan available for
review.
City of San Luis Yes. completed March $285,000 for consultant. Existing system assessment. IT
Obispo 2001. We have a copy lots of staff time. Took 6 support, organization and staffing,
of the Master plan months to complete. software application needs, IT
available for review. infrastructure, telecommunications,
radios, utilities telemetry and public
safety mobile data computers, "e-
aovernmenl" and svstem securitv.
City of Sausalito No. In-progress. N/A N/A
City of Murrieta No. In process of Completing a Master
completing. Plan in-house.
City of Beverly Hills Suggested contacling
Ron Lunt at American
Public Power
Association.
City of Claremont Yes No cost. Used citizen Identifies needs and strategies on a
volunteer committee and conceptual basis.
staff.
City of Milpitas Yes. Completed in 1995. $55,000 for outside The study covers City IS
consultant. requirements. cable tv, and other
telecom issues. We have a copy of
the Master Plan for review.
City of Fremont No. N/A N/A
City of Mission Viejo No. N/A N/A
City of Rancho Yes. Firm used was $235,000 for consultant Existing systems, fiber optics, what
Cucamonga Deloitte & Touche. services. Took 14 the community would like to see, e-
We have a copy of the months to complete. government, telecommunications,
Master Plan Executive ADA compliance, etc.
Summary for review.
CITY COMPLETED COSTS? LENGTH INFORMA TION
STUDY? OF TIME TO PROVIDED?
COMPLETE?
Po way Yes. Study conducted Addressed right-of-way management.
by DKS Associates in implementation and funding, and
2000. recommendations.
We have a copy of the Master Plan for
review.
Tracy Yes. Approved and Evaluates current systems in place.
adopted on 1996. identifies needs of the diverse City
departments. and proposes programs
and technoiogy that address the
departmental and City-wide needs.
We have a copy of the Master Plan for
review.
EISegundo Yes. Study conducted Focuses on internal technology and
by Kerry Consulting communication systems. We have a
Group 1998-2000. copy of the Master Plan for review.
Santa Monica Yes. Study conducted This is a 5 yr plan that identifies
by Media Connections community/business needs (400
Group 1998. phone calls) and does an internal
needs assessment. We have a copy
of the Master Plan Executive
Summarv for review.
San Diego No. They have done an
internal IT Enterprise
Architectural Plan and a
long range strategic plan
for wireless voice and
data communication
svstems.
Moreno Valley In Process. I spoke to The consultant that they The consultant will:
Larry Gonzalez (909) are using is Auriga 1) Provide specifications for
413.3136 in the Public Corporation and the total telecom facilities
Works Dept. (PW is the cost for their services 2) Take a look at the
lead on the project.) based on the City's community. taik to focus
scope of work is groups (residents.
$97.000. businesses, & commercial),
assess the needs of the
community, and construct a
conclusion.
3) Look at the feasibility of
conditioning developers to
provide needed infrastructure
and identify the City's
role/involvement (if any) in
Telecommunications. In
addition. they wiil be doing a
basic financial analvsis.
ATTACHMENT 2
. Broadband Speed & De8erIpt:Ion Chart .
II
1 Dial-uD 156 Kbps
128 Kbps-
768 Kbps
Bandwidth
Service
DSL
~128Kbps-
I ~ 2.0 Mbps
Satellite
Cable
Modem
T1
T3
400 Kbps
1-2 Mbps
11.544
I Mbps
44.736
Mbps
Description and Approximate Costs I Price
This is not broadband service. Basic Dial-up Modems-
Consumer prices range from $9.95 to $19.95/month.
128Kbps to 1.5 Mbps downstream. 64Kbps to 1.5 Mbps
upstream. Consumer class is approx. $40-$50/month.
Business class is approx. $90-$400/month, depending on
bandwidth speed required.
128 Kbps to 1.0 Mbps T1 speed. Prices are $49/month,
Installation and Modem are $350.00.
Usually 400 Kbps downstream & upstream speed. Home
broadband prices are approx. $60-100/monlh.
- Can be used when DSL & Cable are not available
- Always On - Instant Connection
- No need for a 2nd phone line - Talk and Surf at the same
time
- Share the connection with multiple PC's
- Download & Stream Music, Videos, Movies, and play
Online Gaming
200Kbps to 2 Mbps downstream & upstream speed. Home
broadband prices are approx. $40-$50/month.
- Up to 50x faster than Dial-up
- Always On - Instant Connection
- No need for a 2nd phone line - Talk and Surf at the same
time
- Share the connection with multiple PC's
- Download & Stream Music, Videos, Movies, and play
Online Gaming
1.544 Mbps digital circuit. Can be dedicated internet access,
point-to-point or integrated. Prices are approx. $520-
1100/month + local loop + set up costs.
44.736 Mbps digital circuit. Can be dedicated internet access,
point-to-point or integrated. Prices are approx. $5000-
15,000/month + local loop + set up costs.
Units of Measurement - Bandwidth
Speeds
bit= smallest unit of digital information, i.e. ones &
zeros
bps= bits per second
Kbps= kilobits per second =1000 bits per second
Mbps = Million bits per second =1,000,000 bits
per second
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ITEM 26
APPRO V AL
CITY ATTORNEY V
DIRECTOR OF FINANCE /;;4t).
CITY MANAGER ,.-.-
CITY OF TEMECULA
AGENDA REPORT
TO: City Manager/City Council
FROM: Grant Yates, Assistant to the City Manager
DATE: June 24, 2003
SUBJECT: Amendment to Animal Friends of the Valley Contract for Animal Control Services
and Increase in Dog License Fees
PREPARED BY:
Aaron Adams, Sr. Management Analyst
RECOMMENDATION: That the City Council:
1. APPROVE a one-year contract extension for Animal Control Services with Animal Friends of
the Valley not to exceed $130,000.
2. AUTHORIZE the City Manager to approve additional service not to exceed ten percent
(10%) of Ihe amount of the Agreement.
3. ADOPT a Resolution entitled:
RESOLUTION NO. 2003-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA ESTABLISHING ANIMAL
LICENSING FEES
4. APPOINT one member as a liaison to work wilh staff and Animal Friends to explore the
details of a new shelter.
BACKGROUND: The City of Temecula has contracted with Animal Friends of the Valley,
(formerly L.E.A.F.). since 1995 for animal control services. Animal Friends of the Valley has
performed very well during this period, and City staff, including the Police Department, has been
very salisfied with the services they provide.
This Contract Extension is for a period of one year. The current contract expires on June 30.
2003. It is staff's intenl, in extending this contract for one year, to work with Animal Friends of
the Valley as they continue to explore the concept of building their own shelter. As you are
aware, this issue has become more complicated as the County of Riverside recently announced
they also plan to build a new shelter in the Southwest area of the County.
If the City and Animal Friends are able to agree in concept to a long-term contract that allows
Animal Friends secure the funding for this shelter, then this concept will be brought before the
City Council within this one-year time period. Staff is also recommending that the City Council
R:\ADAMSA\CQUNC1L\LEAF Contract Extension 2003.doc
appoint one member to serve as a liaison with Animal Friends during this one-year negotiating
period.
Animal Friends will also make a presentation, tonight, on the status of their discussions with the
County and provide the City Council, and the community, with information on their plans for a
new shelter.
This proposed action also includes a Resolution/Contract Amendment for rale increases for City
dog licenses. The City has not increased license fees since 1995. The current rates for an
unaltered dog are $25.00 per year and $8.00 per year for an altered animal. The proposed
annual fee for an unallered dog is $50.00 per year and for an altered dog is $15.00. The fee
increases are summarized in both the attached agreement and resolution.
This license fee is the same rate that Ihe Cities of Murrieta, Lake Elsinore and Canyon Lake will
be charging. This uniform rate was established as Animal Friends provides service to each of
these Cities and the uniform fees will ensure that there is a regional approach to animal control.
Finally, the hourly rate for animal control service, during this one-year period, will be set at
$60.00 per hour. This rate has been established by a study completed by DMG, which is the
same firm the City used for our DIF and User Fee study. DMG is recognized as one of the
industry leaders in completing these types of studies. This rate will ensure that Animal Friends
is not losing money for the services they are providing.
FISCAL IMPACT:
Because of increasing dog license fees, the budgeted amount will cover the costs of anticipated
services relating to this amendment. This amount will cover the increases associated with Ihis
amendment. The fiscal year 2003-04 Operating Budget includes $130,000 for Animal Control
Services.
If the City and Animal Friends are able to agree on a long-term contract, which will help fund the
new shelter, this budget amount may need to be revisited when the new contract is adopted.
ATTACHMENT(S): Contract Amendment
Resolution Establishing License Rates
R:\ADAMSA\CQUNCIL\lEAF Contract Extension 2003.doc
CONSULTANT AGREEMENT
THIRD AMENDMENT TO
AGREEMENT BETWEEN CITY OF TEMECULA AND
ANIMAL FRIENDS OF THE VALLEY (aka L.EAF.)
THIS THIRD AMENDMENT is made and entered into as of June 24, 2003 by and
between the City of Temecula, a municipal corporation (City) and Animal Friends of the Valley
(Consultant). In consideration of the mutual covenants and conditions set forth herein, the
parties agree as follows:
1. This Amendment is made with respect to the following facts and purposes:
a. September 1995 the City and Consultant entered into that certain
agreement entitled "City of Temecula Agreement for Consultant Services"
(Agreement).
b. The parties now desire to amend the Agreement as set forth in this
Amendment.
2. This contract will be for a maximum of 1 year. In no event will this amendment
be in place longer lhan July 1, 2004.
3. The hourly rate for animal control services shall be set at $60/hour for Ihis contract
period. In addition, live animal housing rate shall be set at $33/hour. Mileage costs
will remain at .96/mile.
4. License fees shall be set at 1 Year-$15, 2 Year-$20, 3 Year-$25 for altered dogs,
unaltered dogs 1 Year-$50, 2 Year-$100, 3 Year-$150 and Senior Citizens 1 Year-
$8,2 Year-$10, 3 Year-$12. The late penalty will remain at $20 per license.
5. Total costs of service for one year shall not exceed $130,000. The City Manager
may approve additional service not to exceed ten percent (10%) of the amount of the
Agreement, but in no event shall such sum exceed thirteen thousand dollars
($13,000.00). Any additional service/work in excess of this amount shall be approved
by the City Council.
R:\ADAMSA\CQUNCIL\LEAF CONTRACT amendmenllll.doc
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed the day and year first above written.
CITY OF TEMECULA
BY:
Jeffrey E. Stone, Mayor
ATTEST:
BY:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
BY:
Peter M. Thorson, Cily Attorney
CONSULTANT
Animal Friends of the Valley
29001 Bastron Avenue
Lake Elsinore, CA
(909) 674-0618
Ann Washington, Director
R:\ADAMSA\CQUNCIL\lEAF CONTRACT amendment lIl.doc
RESOLUTION NO. 03-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA ESTABLISHING ANIMAL
LICENSING FEES
The City Council of the City of Temecula hereby resolves as follows:
Section 1. Pursuant to Temecula Municipal Code Section 6.02.020 F and K, the
following dog license fees are established.
Fee Schedule
Altered Doq
Unaltered Doq
Altered Dog-
Owner by Senior
Citizen (60 years
or older)
*A late fee shall be charged if the thirty (30) day requirement is not met.
1 Year
$15.00
$50.00
$8.00
2 Year
$20.00
$100.00
$10.00
3 Year
$25.00
$150.00
$12.00
Late Fee
$20.00*
$20.00*
$20.00*
WHEREAS, the above-mentioned rates shall become effective July 1, 2003 and remain
until amended by future resolution;
NOW THEREFORE BE IT RESOLVED that the City of Temecula supports the efforts of
Animal Friends of the Valley and their commitment to providing exceptional animal control
service for our community;
PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula at
a regular meeting held on the 24th day of June 2003.
Jeffrey E. Stone, Mayor
ATTEST:
Susan W. Jones, CMC
City Clerk
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
R:\ADAMSA\COUNCIL\Rcsolu,iOlI. LEAF 2003 doc
CITY OF TEMECULA
I, Susan W. Jones, City Clerk of the City of Temecula, California, do hereby certify that
Resolution No. 03-_was duly and regularly adopted by the City Council of the City of
Temecula at a regular meeting thereof held on the 24th day of June, 2003, by the following vote:
AYES:
o
COUNCILMEMBERS:
NOES:
o
COUNCILMEMBERS:
ABSENT:
o
COUNCILMEMBERS:
Susan W. Jones, CMC
City Clerk
R;\ADAMSAICOUNCI LIRcsch<tion- LEAF 2003.doc
ITEM 27
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINA
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO: City Council/City Manager
FROM: Debbie Ubnoske, Director of Planning
DATE: June 24, 2003
SUBJECT: General Plan Amendment and Zone Change for the Valley Chrislian Fellowship
site located allhe southwest corner of Margarita and De Portola Roads (PA02-
0260)
Prepared By: Saied Naaseh, Senior Planner
RECOMMENDATION:
Provide direction to staff on a General Plan Amendment and Change of Zone for the property
located at the southwest corner of Margarita and De Portola Roads based upon the
recommendations of the General Plan Community Advisory Committee.
BACKGROUND:
On November 20, 2002, the Planning Commission denied Valley Christian Fellowship's request
to change the General Plan designalion and Zoning from Very Low Density Residential to
Professional Office for two parcels. On January 14, 2003, the City Council directed staff to
forward the applicant's reque"st to the General Plan Communily Advisory Committee (CAC) for
their recommendation. On April 29, 2003, the CAC considered this proposal and expanded
their discussion based on examining the "big picture" land uses in the Margarita and De Portola
area. Since the CAC's consideration, the Valley Christian Fellowship has submitted a
Preliminary Application for a 118-suite congregate care facility.
All eight CAC members present considered the project site and its immediate vicinity as
sensitive because of their proximity to residential areas (Los Ranchitos). The CAC recognized
the potential of the area to develop as non-residential because of its proximity to major streets
and the proposed hospital. After extensive discussion, the CAC recommended changing the
General Plan designation of the Valley Christian Fellowship's two parcels along with four other
parcels to the west to Professional Office (refer to Attachment 1). Half of the CAC wanted to
extend the Professional Office area to two additional parcels north of De Portola as well (refer to
Attachment 2). In addition, in the CAC's opinion the best way to ensure compatibility of future
development with the Los Ranchitos area is to re-zone these parcels to Planned Development
Overlay (PDO). The PDO offers flexibility to the City to restrict uses in the area, such as auto-
oriented uses, and to require additional buffering with the residential areas.
R:\G P A\2002\02~0260 Valley Christian Fellowship\CC Staff Report 6-24-03.doc
1
The City Council can either accept the CAC's recommendation and direct staff to submit a
proposed recommendation to the Planning Commission or the City Council can reject the CAC's
recommendation and direct staff to schedule a public hearing before the City Council to take
final action on Valley Christian Fellowship's request to designate their two parcels from Very
Low Residential to Office Professional.
FISCAL IMPACT: None
ATTACHMENTS:
1. Valley Christian Fellowship's two parcels and four parcels to the west
2. Valley Christian Fellowship's two parcels and four parcels to the west and two parcels to
north of De Portola
R:\G P A\2002\02-0260 Valley Christian Fellowship\CC Staff Report 6-24-03.doc
2
ATTACHMENT NO.1
VALLEY CHRISTIAN FELLOWSHIP'S TWO PARCELS
AND
FOUR PARCELS TO THE WEST
R:\G P A \2002\02-0260 Valley Christian Fellowship\CC Staff Report 6-24-03.doc
3
Project Site
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ATTACHMENT NO.2
VALLEY CHRISTIAN FELLOWSHIP'S TWO PARCELS
AND
FOUR PARCELS TO THE WEST
AND
TWO PARCELS TO NORTH OF DE PORTOLA
R:\G P A\2002\02-0260 Valley Christian Fellowship\CC Staff Report 6-24-03.doc
4
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ITEM 28
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANC
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
FROM:
City Manager/City Council
Gra~s, Director of Human Resources
June 24, 2003
TO:
DATE:
SUBJECT:
Ordinance Amending Council Compensation
RECOMMENDATION: Introduce and read by title only an ordinance entitled:
ORDINANCE NO. 2003-_
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TEMECULA AMENDING SECTION 2.04.050 OF THE
TEMECULA MUNICIPAL CODE REVISING THE SALARY
FOR COUNCIL MEMBERS TO SIX HUNDRED DOLLARS
PER MONTH AS PROVIDED IN GOVERNMENT CODE
SECTION 36516 AND PROVIDING FOR
REIMBURSEMENT OF NECESSARY EXPENSES.
BACKGROUND: The Government Code Section 36516 provides that Council Members in a
City with a population of over 75,000 persons are authorized to receive a salary of $600.00 per
month. The current population of the City of Temecula is 75,014 according to the California
Department of Finance.
Currently, City of Temecula Council Members receive $500 per month for service. If the City
Council approves this ordinance, council salary would increase to $600 per month; however,
this pay increase will not be in effect until the City Council is seated following the November,
2003 election.
FISCAL IMPACT: This ordinance will not be effective until after November 2003. Following
implementation, this action will cost approximately $6,000 per year. Adequate funds have been
programmed in the FY 03-04 budget to cover this action.
Attachment: Ordinance 2003-_
ORDINANCE NO. 2003-_
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMECULA AMENDING SECTION 2.04.050 OF THE
TEMECULA MUNICIPAL CODE REVISING THE SALARY FOR
COUNCIL MEMBERS TO SIX HUNDRED DOLLARS PER
MONTH AS PROVIDED IN GOVERNMENT CODE SECTION
36516 AND PROVIDING FOR REIMBURSEMENT OF
NECESSARY EXPENSES.
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES ORDAIN AS
FOLLOWS:
Section 1. The City Council of the City of Temecula does hereby find,
determine and declare that:
A. Government Code Section 36516 provides that council members in
a city with a population of over 75,000 persons are authorized to receive a salary of
$600.00 per month. The population of a city for the purposes of establishing council
member salaries may be based upon either a federal census or an estimate of
population validated by the California Department of Finance.
B. The population of the City of Temecula is 75,014 persons as
validated by the California Department of Finance.
Section 2. Section 2.04.050 of the Temecula Municipal Code is hereby
amended to read as follows:
"2.04.050 Compensation
"A. In accordance with Government Code Section 36516, each
council member shall be entitled to a salary of in the amount of six
hundred dollars ($600.00) per month.
"B. Upon the submission of an itemized account, any council
member may be reimbursed for the actual and necessary
expenses incurred in the performance of official duty. The Council
may, by resolution, establish a schedule of actual and necessary
expenses incurred in the performance of official duty for which
council members may be reimbursed."
Section 3. As required by Government Code Section 36516.5, council
members shall not be eligible for the $600.00 salary described in Section 1 of this Ordinance
until the term of office begins for council members elected at the November 2003 General
Municipal Election. Until such time, council members shall continue to receive $500.00 per
month in salary.
Section 4. If any sentence, clause or phrase of this ordinance is for any
reason held to be unconstitutional or otherwise invalid, such decision shall not affect the validity
of the remaining provisions of this ordinance. The City Council hereby declares that it would
p:\forms\city clerk forms\staff report - shell
2
have passed this ordinance and each sentence, clause or phrase thereof irrespective of the fact
that anyone or more sentences, clauses or phrases be declared unconstitutional or otherwise
invalid.
Section 5. The City Clerk of the City of Temecula 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.
PASSED, APPROVED AND ADOPTED, by the City Council of the City of
Temecula this _day of , 2003.
Jeffrey E. Stone, Mayor
ATTEST:
Susan W. Jones, CMC
City Clerk
[Seal]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, City Clerk of the City of Temecula, California, do hereby
certify that the foregoing Ordinance No. was duly introduced and placed upon its first
reading at a regular meeting of the City Council on the _ day of , 2003, and that,
thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City
Council of the City of Temecula on the day of , 2003, by the following roll call:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
COUNCILMEMBERS:
ABSENT:
p:lformslcity clerk formslstaff report - shell
3
DEPARTMENTAL
REPORTS
APPROVAL I.V~~
CITY ATTORNEY ITWftnt/
DIRECTOR OF FINANCE J II
CITY MANAGER ( V I
r
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City Manager/Ci}l1~cil
Debbie UbnoskjfOirector of Planning
DATE:
June 24, 2003
SUBJECT:
Monthly Report
The following are the recent highlights for the Planning Division of the Community Developmenl
Department in the month of May 2003.
CURRENT PLANNING ACTIVITIES
New Cases
The Division received ;U new applications for administrative, other minor cases, and home
occupations and Lapplications for public hearings during the month of May. The new public hearing
cases are as follows;
EOT (Extension of Time)
Lot Line Adjustment
Development Plan
CZ (Change of Zone)
1
4
1
1
Status of Maior Proiects
Recently Approved Projects
. Carlyle Homes at Crowne Hill - A Development Plan application by Lennar Homes. This
application is the Product Review for 100 detached single-family residential homes and it will
offer three different floor plans with three different architectural designs. The homes will be
located in the central portion of the Crowne Hill Subdivision, Tract 23143-8, east of Butterfield
Stage Road south of Pauba Road. This project was approved at Director's Hearing on May 15,
2003.
. Big Lots - A Development Plan proposal to build a 28,100 square foot retail store on the vacant
lot adjacent to Michael's in the Tower Plaza shopping center. STDR Architects of Costa Mesa
submitted the application on February 27, 2003. The Planning Commission approved this
project on June 4, 2003.
R:\MONTHL Y.RPT\2003\May 2003 Report.doc
. Power Center II - A Development Plan request to develop an 8.8 acre commercial site for
multiple building pads (under separate reviews) to build retail and restaurants buildings totaling
49,072 square feet, located on the northwest corner of North General Kearny Road and
Margarita Road within the Temecula Regional Center. Jack Tarr, with Diversified Investment
Co., subrnitted this project on November 7, 2002. A DRC meeting was held for this and all
related projects on Decernber 12, 2002. Revised plans were resubmitted on April 1, 2003.
Cornments related to this project are being prepared. This project was approved by the
Planning Commission on June 4, 2003, along with other related projects:
o Krispy Kreme - A Development Plan request for a 4,025 square foot donut shop/restaurant
with drive-thru.
o Islands Restaurant - A Development Plan request for a 5,293 square foot restaurant.
. Vince's Spaghetti Express - An Administrative Development Plan proposal to remodel an
existing drive-thru restaurant (Taco Bell) for use as an Italian casual dining restaurant with drive-
thru take out located at 28145 Jefferson Street. Staff administratively approved this project June
11,2003.
. Astoria Homes at Crowne Hill - A Development Plan application by Greystone Homes. This
application is the Product Review for 111 detached single-family residential homes that will offer
three different floor plans and three architeclural designs. The homes will be located in the
northeast end of Crowne Hill Subdivision, Tracts 23143-10 -11 & -Final, east of Butterfield Stage
Road south of Pauba Road, east and west of Crowne Hill Drive. This project was approved at
Director's Hearing on May 22, 2003.
Recently Denied Projects
. Bob and Gary's Field Fresh Berries - A Temporary Use Permit for a temporary fruit stand located
on the northeast corner of Winchester Road and Nicolas Road. This TUP was submitted on
January 9, 2003. On February 51h the Planning Director denied the application due to traffic
safety concerns. On February 19, 2003, the Planning Comrnission denied the application in
support of the Director's decision. On April 2, 2003 the applicant filed an appeal of the Planning
Commission's decision to deny the appeal and uphold the Director's decision to deny the
Temporary Use Permit. The City Council upheld the Planning Commission decision to deny
PA03-017, due to traffic safety concerns.
Projects Under Review
Cornmercial
. Church of Jesus Christ of Later Day Saints - A Conditional Use Permit/Development Plan to
construct, operate and establish a 24,119 square fool single story church located on the north
side of Pauba Road, approximately 170 linear feet west of the centerline of Corte Villoso. A
DRC was held on February 13, 2003. A Community Meeting subsequently held in the Council
Chambers, on March 17, 2003. Staff noted a number of concerns, which were voiced by the
neighbors, which were then summarily sent to each attendee. Staff met with the project
architect to discuss site design issues. A second community rneeting will be scheduled upon
subrnittal of revised site plan.
. Margarita Canyon - A request for the first extension of time for Tentative Parcel Map No. 28627
located west of Interstate 15 and south of Old Town Front Street, submitted by Margarita
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2
Canyon, LLC. The application was submitted on February 21,2003. The item was scheduled
for a DRC meeting on April 24, 2003. A DRC letter was mailed to the applicant on April 24,
2003. As of June 9, 2003, the Applicant has not resubmitted.
. Monkey Feet - A Minor Conditional Use Permit proposal to eslablish a computer nelwork service
and Internet access facility. The site is located at 27911 Jefferson Avenue, Suite 103. A
second request for information and revisions was sent to the applicant June 10, 2003.
. Overland Self Storage Facility - Conditional Use Permit to construct a 124,496 square foot, one
story, self-storage mini warehousing facility with beige stucco and beige metal siding exterior
walls and olive green color metal rooling on a lwo lot, 3.65-acres site, located south of Overland
Drive and east of Commerce Center Drive. Future phase to include construction of a one-story
3,000 square foot office and caretaker's dwelling unit located at front of site. The
applicant/owner has revised the architectural elevation plans for staff review. Revised plans
have been re-submitted and staff has continued to note discrepancies. A meeting belween Staff
and the applicant will be scheduled for the week of June 16, 2003.
. ABC Pre-School Facility - A Development Plan proposal to establish a two-story 21,849 square
foot day care/pre-school facilily on a 1.9 acre site. The property is located at the northwest
corner of Village Road and Landings Road in the Harveston Specific Plan area. A DRC meeting
was conducted on April 3, 2003. The application has been scheduled forthe June 18th Planning
Commission meeting.
. Redhawk Car Wash - A Conditional Use Permit proposal to build a self-service car wash located
approximately 500 feet west of Redhawk Parkway on the south side of Via Rio Temecula. A
DRC was held April 15, 2003. A letter was sent on April 16, 2003, with requirements for a
redesign.
. St. Catherine's expansion - A Conditional Use Permit and Development Plan to establish an
educational/community meeting room, and construct a 2,301 square foot office addition and a
10,902 square foot classroom building on an 8.43-acre site located at 41875 C Street. A DRC
meeting was held on April 24, 2003. A DRC letter was mailed out on April 25, 2003. Slaff is
waiting for applicant to address Staff concerns and resubmit. As of June 9, 2003, the applicant
has not resubmitted.
. Tentative Parcel Map 30849 - A request to subdivide 2.61 gross acres of commercially zoned
property into 2 lots. The project was deemed incomplete on November 8, 2002. Revised plans
were resubmitted on December 18, 2002. The applicant has been advised by Public Works that
a parcel map with a waiver of the final map is highly recommended. However, the applicant has
not yet decided.
. Jefferson Avenue Inn - A revised Development Plan to construct, establish and operate a 3-
story, 56-unit hotel complex totaling 31 ,600 square feet on a 1.35 acre site. The site is located
approximately 200 feet east of Jefferson Avenue and 200 feet north of Winchester Road. A
DRC meeting was held on May 22,2003. Staff is awaiting revised plans.
. Winchester Pavilion - A Development Plan to construct, operate and establish a 15,156 square
foot commercial building on 1.15 acres, located at 41720 Winchester Road, west of Enterprise
Circle South, east of Enterprise Circle West and south of Winchester Road. The project was
submitted on March 27, 2003. A DRC meeting was scheduled for May 15, 2003 and plans will
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3
need revisions. A DRC letter was mailed to the applicant on May 15, 2003. As of June 9, 2003,
the applicant has not resubmitted.
. Rancho Pueblo Professional Center - A Development Plan to design and construct a mixed-use
professional center with 6 buildings for medical office, restaurant, and other uses with a total of
110,197 square feet of floor area, on 14.5 acres. The project is located on the north side of
Highway 79 South, east of Avenida de Missiones, and the future Rancho Pueblo Road. Malkoff
& Associates, of Villa Park, submitted the application on April 25, 2003. A DRC meeting was
held on June 5, 2003. The proposal did not meet Ihe development criteria for PDO-6 and is
undergoing revisions by the applicant.
. Bridgeport Map - A request to divide 14.48 acres into an 8 lot commercial subdivision, located
on the north side of SR79 South east of Avenida de Missiones (east of the Rancho Community
Church project). Mr. Orley Weaver, with Bridgeport Builders, submitted this project on
September 16, 2002. The project was deemed incomplete and inconsistent with the General
Plan's requirement for this property to develop as a unified site. This project is on hold while the
applicanl works with several commercial users to submit a comprehensive development plan for
the entire site. (See above project).
. Temecula Super Storage - A Conditional Use Permit to design, construct, and operate a mini-
storage facility consisting of a single-story, 1,307 square foot office, three 1-story buildings, and
two 2-story buildings for a total of 109,177 square feet, on 3.9 acres. The project will be located
on the north side of Highway 79 South, east of Avenida de Missiones, on the north side of the
future Rancho Pueblo Road. Jordan Architects, of San Clemente, submitted the application for
Bridgeport Builders, of Costa Mesa, on April 25, 2003. A DRC meeting was held June 5, 2003.
Staff is awaiting a line-of-site analysis to complete its review.
Industrial
. O'Hern Wall Industrial Building - A Development Plan to construct a 18,400 square foot
industrial building on 1.28 acres, located at 42108 Roick Drive, submitted on October 8,2002,
by O'Hern Wall Associates. The applicant has been revising the site plan, landscape plan and
elevations. Staff has determined the site plan and landscape plan is complete. The applicant is
currently revising the elevations.
. Reminglon Business Center - A Development Plan to design and construct a light industrial
complex consisting of 11 buildings, built in two phases, totaling 127,162 square feet, on 8.9
acres. The project is located on the south side of Remington Avenue between Winchester and
Diaz Roads in the Westside Business Center. Smith Consulting Architect, of San Diego,
submitted the application on April 22, 2003. A DRC meeting was held June 11, 2003. Staff is
preparing an Initial Study and anlicipates Planning Commission review in August.
. Sigma Industrial Complex - A Development Plan to construct 6 detached industrial buildings
totaling approximately 83,000 square feet on 5 acres located on the north side of Zevo Drive,
submitted December 23, 2002. A DRC was held on January 23, 2003. Revised plans were
submitted on March 11, 2003 and there are still outstanding design concerns. A tentative
Planning Commission date of July 2,2003 has been set with a recommendation of continuance
for redesign.
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4
. Zevo Drive Condos - A Development Plan to construct 2 industrial condominium facilities totaling
approximately 91,337 square feet on 3.5 acres located on the north side of Zevo Drive,
submitted December 26,2002. Development Review Committee was held on January 30th and
the revised plans were submitted on April 17, 2003. The Applicant has revised the Geotechnical
Report and the County Geologist is currently reviewing the study.
Mixed Use
. Lago Bellagio - A Development Plan and Vesting Parcel Map to construct a 396-unit senior
retirement facility building totaling 477,020 square feet, an 110,121 square foot office building
and a 19,357 square foot clubhouse on 22.62 acres, located at the corner of Pechanga Parkway
and Loma Linda. Staff routed the plans for comments on April 1 , 2003, and the comments are
due on April 15, 2003. Due to the complexity of the projecl, Staff is continuing to analyze Ihe
plans. A DRC meeting was heid on May 22, 2003. A DRC letter was mailed out on May 27,
2003.
. Linfield Christian School Master Plan - Submitted by Linfield Christian School; a Conditional Use
Permit and a Planned Development Overlay proposal to expand the existing facility with 154,397
square feet of additional classroom and accessory structures and a proposed 37,500 square
feet of housing for a superintendent, caretaker and facility. This project is located on the north
side of Pauba Road west of Margarita Road (behind Temecula Valley High School). The
applicant has submitted the PD~, and it is currently under review. A DRC was held December
12, 2002, and a letter has been sent out with staff comments. The applicant revised the
documents on February 21,2003. Planning Commission recommended City Council approve
project on May 21,2003. A City Council date of July 8,2003 has been set.
. Villages of Old Town - Staff has been meeting with the applicant regarding the new proposal,
however, no formal submittal has been received. The applicant will be proposing a
Memorandum of Understanding (MOU) that will be brought forward to City Council after it has
been reviewed by slaff
Residential
. An application for a Tentative Tract Map 30990, a request to subdivide 3 existing lots totaling
40,349 square feet into 6 single-family lots, located on the west side of Pujol Street and north of
First Street. The application was submitted on May 21, 2003 and a Pre-DRC meeting was
scheduled for June 10, 2003
. Ham Residence - A request for a Certificate of Compliance for the southern portion of lot 7 of
TM 8211 located on Santiago Road east of Ynez Road, submitted by Tracy Ham. The
application was submitted on February 12, 2003. A Development Review Committee has been
scheduled for March 13, 2003. A second DRC meeting was held on April 13, 2003. Staff is
awaiting revised exhibits for the project.
. Harveston Tentative Tract Map No. 31267 - Residential Tract Map application to subdivide 5.6
acres into 62 single-family residential lots, 3 private driveway lots and 8 open space lots. The
site is located on the south side of Harveston Drive east of lake view Road. The application was
submitted on April 23, 2003. A DRC meeting was held May 22, 2003. Staff has requested that
portions of the tract be redesigned and is awaiting map revisions.
R:\MONTHL Y.RPT\2003\May 2003 Report.doc
5
. Naron Pacific Tentalive Tract Map 30434 - A proposal for zone change from L-1 to L-2 on 31.93
Acres and Tentative Tract Map to subdivide into 30 residentiallols and 4 open space lots in the
Chaparral area. The third submittal is incomplete. Staff is waiting for submittal of a constraint
map. The applicant has not provided Ihe requested information.
. Quiet Meadows - A proposal to subdivide 4.57 acres into 7 residential lots with one open space
lot; and a proposal 10 change the zoning designation from L-1 to L-2. This project was submitted
on July 11, 2002. The project was deemed incomplete on August 9, 2002 and December 4,
2002. Revised plans were submitted on February 3, 2003 and routed to all departments for
conditions of approval. An Environmental Assessment has been completed. Based on the EA,
no significant impacls have been identified. The Planning Commission recommended the
project, for denial on May 7, 2003. The project is scheduled for the June 24'h City Council
meeting.
. Stratford Homes at Crowne Hill - A Development Plan application by US Home Corporation.
This application is the Product Review for 114 detached single-family residential homes that will
offer three different floor plans in three architectural designs. The homes will be located in the
northeast end of Crowne Hill Subdivision, Tracts 23143-1 & a portion of 23143 -11, northeast
corner of Butterfield Stage Road and Royal Crest Place and the southeast corner of Butterfield
Stage Road and Pauba Road west of Crowne Hill Drive. This project is scheduled for Direclor's
Hearing on June 12, 2003, with a recommendation for approval.
. Tentative Tract Map 29133 Revision - A request to revise a previously approved TIM to change
a public street to private, add a gated entry and relocate affected driveways and drainage. Staff
met with the applicant on February 13, 2003, and the applicant is revising their map due to a
legal issue.
Miscellaneous
. AT&T Wireless - A Conditional Use Permit/Development Plan to construct, operate and
establish an unmanned wireless communication facility consisting of a 60'-0" mono-pine and a
8'x12' equipment area, located at the Rancho California Water District Water Reservoir
Complex, east of Meadow Parkway. The project was submitted on June 21, 2002. Although the
project was deemed complete on July 19, 2002, the applicant was advised that staff could not
support the proposal. Additionally, since the project was submitted, staff has received numerous
phone calls, letters and petitions in opposition to the project from the adjacent homeowners.
Staff has been meeting with the applicant to resolve design issues.
. Cingular Wireless - A Conditional Use Permit to construct, operate, establish and maintain a
wireless telecommunications facility with 3 antennas housed within the bulb portion of the
proposed 55-foot artificial mono-palm tree located at 31575 Enfield Lane, east of Riverton Lane
and north of Humboldt Court. The project was deemed incomplete in February 5, 2003. An
Environmental Assessment is required per CEQA. Staff has requested additional studies in
order to complete the assessment. Also, the applicant has provided staff with photographs of
existing mono-palms and addilional items. As of May 15, 2003, slaff has not received all
environmental studies required for the Initial Study preparation.
. Grace Presbyterian Church - A Conditional Use Permit 10 construct a church facility in two
phases. The site is located at the southwest corner of Calle Medusa and Nicholas Road. Staff
has scheduled the project for June 18'h Planning Commission meeting.
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. Landwerx/PC Gaming Arcade - A Minor Conditional Use Permit submitted by Landwerx/PC
Gaming to operate an interneVarcade cafe for entertainment of customers between the ages of
15-25 years of age. The arcade will be operated out of a business suite in a commercial center
localed at 27309 Jefferson Avenue, Suite 104. The Police Department is preparing COA to
assess the proposai's hours of operation. Staff has provided the applicant with a list of the
Police Department's COA regarding hours of operation, and is awaiting word from the applicant.
The project will be scheduled for Planning Commission on July 16, 2003
. Meadowview Golf Course - Conditional Use Permit and Development Plan to design and
construct a public golf course and driving range within the Meadowview Community. The
Focused EIR requires modificalion. The applicant has retained a new environmental consullant
to complete the modifications. It is anticipated that the EIR will be distributed in August 2003.
Planning Commission consideration in December 2003.
. Rench Variance - An application requesting a Variance to a site a second unit dwelling in the
front yard located at 39330 Kimberly Lane (957-340-030), submitted by William Rench. The
application was submitted on December 27,2002, and staff met to discuss concerns with the
applicant on February 61h. On May 27, 2003 the applicant requested a refund. Staff has
processed a refund for the application fees.
. Roripaugh Ranch Private Recreation Facility - Located in planning area 5 of the Roripaugh
Specific Plan, this recreation center includes an 8,000 square foot building, pool, spa, tennis
courts and other noted facilities was submitted on February 13, 2003. Staff is resolving some
exiting issues and expects approval of the project shortly. Staff permitted a concurrent review of
the construction plans.
. Verizon Mono-Palm Wireless Antenna - A Conditional Use Permit to construct, operate,
establish and maintain a wireless telecommunications facility with 3 antennas housed within the
palm fronds of the proposed 40-foot artificial palm tree. The site is located on the east side of
Margarita Road just north of the Santa Gertrudis Creek Channel north of Winchester Road on
the Rancho California Water District's well site. The applicant is working with staff on a new
location. Staff is awaiting revised plans.
. Wireless Telecommunication - A Conditional Use Permit for a 60 foot high monopine within the
Rancho California Water District Headquarters facility. Staff has informed the applicant that the
proposed monopine is not an acceptable design for the area. Staff is waiting forthe applicantto
resubmit an alternative design such as installation of the parking lot lights
. Wireless Telecommunication - A Minor Conditional Use Permit to co-locate three sector
antennas on an existing 57 foot high monopine and the installation of four equipment cabinets,
located at 41520 Margarita Road (954-020-005); submitted by AT&T Wireless. The project was
deemed incomplete on May 7, 2002. A DRC meeting was held on May 23,2002, and staff is
awaiting re-submittal by applicant. As of June 9, 2003, staff has not received any new plans
from the applicant. Staff will be sending a letter to the applicant closing out the file.
Small Business Assistance
. The Barn Building (Formally Lighthouse Thrift): Staff continued to work with the new owner of
this building and helped him obtain a building permit for a new fa9ade treatment. An application
for the funding of this project through the Fa9ade Improvement Program has been submitted to
the Redevelopment Department.
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. Mad Madeline's: The sign contractor working with the owners of Ihis Old Town restaurant
advised staff that new exterior paint colors and sign designs will be submitted to the Old Town
Local Review Board for review in July.
. The Sagebrush Center: The sign program for this commercial complex has been delayed due to
the addition of new tenants. Preliminary designs are currently under development and will be
submitted to the Old Town Local Review Board when Fal(ade Improvement Funds become
available.
. The Firehouse Building: Preliminary paint and sign designs are being completed for this
historical Old Town building. The sign contractor working on this project plans to submit a
planning application for this project to the Old Town Local Review Board when Fal(ade
Improvement Funds become available.
. La Tacqueria: Staff is working with the owners of this Old Town business on a revised plan for
an exterior fal(ade improvement that includes new awnings, paint and signs. A proposal from
the contractor is to be submitted to the Old Town Local Review Board in July when funding will
be available through Ihe Fal(ade Improvement Program.
. Temecula Olive Oil Company: With the assistance of staff, new sign designs are being
developed for this business that relocated in the Old Town Tourist Retail Core area.
Special Event Permits
. Boys and Girls Club: Staff has continued to help this applicant secure permission from the
landowner, the Temecula Town Association, and process a Temporary Use Permit for a
commercial coach to be used as an interim office at this Pujol Street location.
. Taste of Southwest County: The American Red Cross worked with the Planning and Community
Services Departments on this event that took place at the Duck Pond on May 4, 2003.
. Street Painting Festival: This event, organized by the City of Temecula Redevelopment
Department, will take place in Old Town Temecula on June 21 and 22, 2003.
. Western Days: Staff worked with the City Redevelopment Department 10 organize this annual
event that took place on May 17 and 18, 2003.
Special Projects & LonQ RanQe PlanninQ Activities
The Division also commits work efforts toward larger scale and longer time frame projects for both
private and public purposes. These activities can range from a relatively simple ordinance or
environmental review to a new specific plan or a general plan amendment. Some of the major
special projects and long range planning activities are as follows:
. Comprehensive General Plan Update - The CAC has completed its review of the draft goals and
policies, and is currently considering alIernative land uses. The consulIant is providing draft
elements for Staff and CAC review. All the elements have been revised except the Circulation
Element, which will be reviewed in June. The following amendment requests have been
received; they will be addressed in more detail when the updated General Plan is considered.
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o A request 10 reduce the size of Via Induslrial (Western Bypass Corridor) north of Avenida
Alvarado has been submitted and has been on hold pending the approval of a revised
Circulation Element.
o South Margarita Road adjacent to the Santa Gertrudis channel, across the channel from
Chaparral High School. The property owner is requesting a change from Public Institulional
to Professional Office.
o The southeast corner of Via Lobo and Nicolas Road, and properties along the northeast
edge of Meadowview. The property owner is requesting a change from Very Low Density
Residenlial to a combination of Low Medium Density Residential and Open Space.
o The southeast corner of Margarita Road and Solana Way. The property owner is requesting
a change from Very Low Density Residential to Professional Office.
. Hillside Development Policy - The policies are being examined for integration into the draft-
grading ordinance. This item is on hold pending additional staff resources.
. John Warner Road Assessment District - Assisting Public Works with formation of an
Assessment District for road, sewer and storm drain improvements. Storm drain plans have
been submitted to planning for review. A negative declaration was prepared. The Public
Review period is from May 22, 2003 through June 10, 2003
. Procedures to Implement CEQA - Staff initiated project to develop local guidelines and
procedure manual for processing CEQA documents, including the adoption of local exemptions.
The process will also conform to Ihe new 2003 CEQA Guidelines, and will create new templates
for standard CEQA forms.
. Surface Mining Ordinance - The staff and City Attorney had been making final changes based
upon feedback from the State prior to submitting this item to the Council for their consideration.
This item is on hold pending additional staff resources.
. Traditional Neighborhood Development Ordinance - Final changes are being made prior to
scheduling this item for a Planning Commission workshop. This item is on hold pending
additional staff resources.
. Updating of the Old Town Specific Plan - Staff has worked with the Old Town Local Review
Board and prepared a list of changes and enhancements to the plan. These proposed changes
are currently being organized into an updated SP document.
. City - Project environmental reviews and permitting:
o Overland Drive Extension - Staff reviewed 2nd submittal of the draft initial study / Mitigated
Negative Declaralion and has provided comments to Public Works. No resubmittal to date.
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o Old Town Southern Gateway Landscaping Project - Request from Public Works for
Environmental Determination forthis project. Previously prepared Negative Declaration may
need to be modified because the project description has changed. Revised project
description has not been submitted to Planning.
o Paloma del Sol Supplemental EIR and Specific Plan Amendment 8.1 - Staff is assisting the
applicant's consultant in preparing a Supplemental EIR and Specific Plan Amendment to
address drainage issues. Newland is behind schedule in submitting the application. Keith
Companies has not completed the drainage plans. This project is on hold pending the
Applicanl's Submittal.
o Temecula Education Complex - Staff reviewed and commented on the Initial Sludy Checklist
for a mixed-use development that will focus on adult-education, located at the northwest
corner of Diaz Road and Dendy Parkway. The applicant has revised and resubmitted the
Initial Study. The results, of the initial study, is that an EIR should be prepared.
o Winchester Road Widening Project - Request from Public Works for Environmental
Determination to widen Winchester Road west of Jefferson. Staff is examining the impact of
removing landscaping along both sides of Winchester Road between Jefferson and
Enterprise Circle. Staff has received additional information from Public Works and has
started to prepare an Initial Study.
o Vail Ranch Elementary School Basketball Court Lighting Project - Staff will complete the
Negative Declaration for this project and notice lor a 30-day Public Review by the end of
June.
o Update of the Citywide Design Guidelines - The City Council awarded the contract on May
13, 2003. Staff has been working with the consultant to resolve some insurance issues.
These issues have been resolved. The meeting with the consultant is scheduled for June
16, 2003.
General Plan Amendments
. Overland Self-Storage Facility - A proposal for a General Plan Amendment and a change of
zone, changing the designation and zoning from Service Commercial (SC) to Light Industrial.
The applications were submitted on February 11, 2003. This proposal is in conjunction with a
Conditional Use PermiVDevelopment Plan for an RV Slorage facility known as (PA01-0605). A
meeting will be held on the week of June 16, 2003, to discuss the proposal.
. PA02-0260 Valley Christian Fellowship -The Community Advisory Community has reviewed the
General Plan issues in the surrounding areas. Their recommendation will be returned 10 City
Council on June 24, 2003.
Geoaraohic Information Svstem (GIS) Activities
. Staff made its scheduled updates to street centerline data and preplan information for the City's
fire response program.
. Staff has been providing Public Works staff with maps and analysis to assist the consultant
working on the City's compliance with GASB 34 infrastructure inventory.
. Finance and GIS Staff have been working with the Southwest County Economic Development
Alliance to standardize business license data within the GIS to provide more detailed information
for perspective clients.
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. Staff made its weekly updates to Ihe database and maps for the City's Megan's Law link on the
web page.
. Staff continued to provide maps and updates for the CIP document.
. Recent mapping products and data requests include:
o Completed a number of public requests for aerial and topography maps for various areas
throughout the City
o Prepared a vicinity map of Tract 29133 for Community Services
o Updated the map identifying all projects with development agreements for Planning
o Prepared a map identifying the course for the Temecula Grand Prix
o Conducted dala calculation and map of all road lane miles within the City for Public Works
o Provided map of the address ranges for the properties along Highway 79(S) for Building
o Prepared a series of topographic and aerial maps of the open space areas around the
Roripaugh Ranch/Johnson Ranch areas for Planning
o Prepared and map identifying the Development Impact Fee area for Planning
o Created a map identifying all residential areas within the Redevelopment Area for
Redevelopment
o Created a map indicating the proposed trail undercrossing at Margarita and Winchester for
Community Services
o Updated the Point of Interest map for the City Clerk's office
o Prepared a map identifying all specific plan areas within the City's sphere of influence for
Planning
o Created a series of maps idenlifying properties within the Wine Country for consideration of
annexation for the City Manager's office
o Prepared a series of maps for Finance identifying the commercial properties within the
Redhawk annexation area
o Prepared a vicinity map for an affirmed housing project for Community Services
o Provided a map showing parcels with commercial and industrial land uses of 5 acres or
larger for Economic Development
o Provided a list of all vacant commercial properties and their acreages as a public records
request
o Updated the vacant commercial properties map
o Conducted data analysis and provided a map to Planning identifying Ihe Chaparral area
within the Nicolas Valley area
o Prepared a conflict of interest map for Planning
o Provided a map of the Promenade tract and surrounding area for Fire
o Created a map identifying all city maintained medians and calculated the square footages of
allandscaped vs. hardscaped areas for Public Works
o Prepared various vicinity, zoning, and General Plan land use maps for Planning
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11
Commission/City Council staff report exhibits
o Various aerial vicinity maps for Planning, Redevelopment, Community Services and Public
Works
o Prepared mailing labels for various Planning projects
On a continuous basis staff conducts updates and maintenance on the City's GIS database and
layers.
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12
CITY ATTORNEY
DIRECTOR OF FIN
CITY MANAGE
APPROVAL
~
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
City ManagerlCity Council
Jim O'Grady, Assistant City Manar
June 24, 2003
DATE:
SUBJECT:
Economic Development Monthly Departmental Report
Prepared by: Gloria Wolnick, Marketing Coordinator
The following are the recent highlights for the Economic Development Department for the month
of May 2003.
ECONOMIC DEVELOPMENT
Leads & Inauiries
On May 12th, staff spoke with Lea DiBernardo to talk about a site in Temecula for her upscale
gourmet deli "Shop Delights" in Temecula.
In the month of April, the Southwest Riverside County Alliance responded to two leads.
These leads were direct contact to the Alliance via phone or web site response. The Alliance
activity report is attached.
EDC Site Visits
Mr. Harry Shank, VP of Southwest Bank, and staff met with Renae Rock, Business
Development of Taylor Frager Construction Company, on May 8th The construction company
has been in the Temecula Valley for 3 Y, years. As a follow-up to the site visit, staff provided a
listing of local sub contractors to Ms. Rock.
On May 2151, Alva Ramirez, Wells Fargo Bank, and staff met with Mr. Massie of Global
Outdoors (The Outdoor Channel). The Outdoor Channel is the first national television
network devoted to traditional outdoor activities. Broadcasting 24 hours a day with programming
about such traditional outdoor activities as hunting, fishing, shooting sports and recreational
gold prospecting, The Outdoor Channel is one of the fastest growing television channels in the
U.S. Global Outdoors, Inc. owns approximately 84% of The Outdoor Channel with cable
television industry professionals and other investors owning the remaining 16%.
Ribbon Cuttina
On May 14'h, Mayor Stone and staff attended the VIP Reception and Ribbon Cutting for the
USA Federal Credit Union's new Temecula branch office. The office is located at 41273
Margarita Road. Today, USA Federal serves over 70,000 members, located in all 50 states.
The credit union is listed among the largest federally chartered credit unions in the country.
CITYMGR\ WOLNICKGIMA Y'OJDEPT.REPT.DOC
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On May 14th, staff attended the Southwest Justice Center Dedication and Open House
located in Murrieta.
Media/Outreach Materials
Staff wrote the City article for the June Chamber of Commerce Newsletter titled, "Shaping
Temecula's Future By Serving Our Community." City volunteer programs and opportunities
were highlighted including those with City Hall, the Temecula Community Services Department,
Temecula Valley Museum, Senior Center, and the Police and Fire departments.
On May 14th, staff met with graphic designer Annie Howell and photographer Chip Morton to
review the photography and layout for the updated Temecula Business Brochure.
Meetinas
Staff attended the EDC Business Relations Committee Meeting on May 1st. Follow-up
reports were provided on Professional Hospital Supply and Flex Equipment. Jim O'Grady
reported on the site visit with Taylor Frager Construction Company of Temecula. The EDC
Business Relations Committee will discuss the impacts of Workers' Compensation issues and
how the issues can be addressed during retention visits. Staff provided a City report on the
following: CIP & Operating Budget will go before the City Council on June 10th, KTM employee
presentation and KTM's building permit. Updates were also given on the new Hampton Inn,
Rancho Way Bridge project & other traffic improvements.
Staff met with Terry Gilmore of Paradise Chevrolet on May Sth regarding the planned auto
mall sign.
On May 6th, staff met with representatives of Guidant Corp. regarding access issues.
Staff attended the Temecula Partners in Education committee on April Sth Parents, business
leaders and community members also contribute valued time and input to the Temecula Valley
Unified School District. Through this committee, the business community works with the District
to attract resources within the community to support education, to solicit input from potential
employers regarding TVUSD technical/vocational education programs and to facilitate contact
and communication between students and the business community. The committee, comprised
of representatives from throughout the Temecula Valley including the City of Temecula, the
Chamber of Commerce, the Manufacturer's Council, small businesses, Guidant, teachers,
students, parents and retired business leaders. is currently working to establish an internship
program for high school students with local employers.
On May 81h, staff attended the 1.15 IRP Housing Workshop - Technical Committee Meeting
at Escondido City Hall. The 1-1S Technical Committee met to discuss possible Economic
Development Jobs/Housing Balance, and Long Range Transportation Strategies. Proposed
jobs/housing strategies included: local jobs website, broadband service map, coordinated
funding group, regional EDA collaboration, and new strategies.
Staff met with Ronald Krimper on May 141h to discuss the proposed Higher Education Facility
site.
Staff attended the EDC of Southwest Riverside County Board of Director's Meeting on May
1Sth. Ken Carlisle was presented with GuidanUEDC membership certificate. On May 23rd the
Director Election Ballots will be tallied and the new slate of officers will be announced at the
June meeting.
CITYMGRI WOLNICKGIMA Y'03DEPT.REPT.DOC
2
EDC Committee Updates
Transportation & Infrastructure update bv David Phares
A meeting was held on May 8th and identified 4 items from SWAT to focus on:
--RCIP - open space issues, transportation
--New transportation corridors in SW Riverside Co.
--Transportation & delivery of goods from LA Port to Inland Empire distribution points
--French Valley Airport & March Air Force Base expansions
Next meeting will be held on June 12th.
Education update bv Maryann Edwards
--Committee met and picked 4 - 5 goals from SWAT
--School Districts in Lake Elsinore, Murrieta & Temecula will be contacted to see what
vocational, educational & ROP programs that are in place and what is needed.
--Adult Education - Mt. San Jacinto is providing classes at TVHS (plans for expanding the
program).
Permit & Planninq update bv Gary Youmans & Rex Oliver
The committee will take a three-pronged attack - communication is key.
1) Make it easy for people to come in & build & do business in each of the cities and county
2) Committee serves as a sounding board for people with complaints on construction &
development process or other issues
3) Committee to take a pro-active approach on issues such as TUMF, construction &
development issues - start early with the education process.
Each of the EDC partner cities has a different format. The committee chairs will meet with each
of the cities and county to review their programs.
Business Attraction update bv Stevie Field
The first meeting was held on May 22nd. The committee reviewed the EDC Strategic Plan.
Stevie Field provided an update of Alliance activities and program. A focus group will be
created to develop a branding campaign for the Alliance to use in their marketing/advertising
program.
Government update bv Ken Carlisle
The first meeting was held on May 20th. Mr. Carlisle spoke about the worker's comp and health
insurance issues facing businesses. Guidant was invited to speak at the Worker's Comp Forum
scheduled at Embassy Suites on May 15 to give their perspective from a "big business" point of
view. It will soon be a requirement that all business provide health insurance to its employees.
Between the health insurance requirement and the high cost of worker's comp it will make it
very difficult to compete for business in CA.
Mary Williams of the Workforce Dev. Center indicated that 50% of the calls she receives are
worker's compo claims and that most are fraudulent.
Business Relations update bv Diane Sessions
Stan Carter will be the new Business Relations Chairperson and he has new ideas for the
program. The committee will make a presentation on the Business Relations program to the
EDC Board soon.
Members were urqed to oppose AB1221. Murrieta indicated that they would take a $9 million
hit.
Ms. Moss encouraged everyone to look at the Bill & write letters to oppose this. She indicated
that Murrieta & Temecula have done so. The EDC will also follow-up on this and write a letter.
CITYMGRI WOLNICKGIMA Y'03DEPT. REPT.DOC
3
Dennis Frank reported briefly on the higher education meeting (UCR, Mt. San Jacinto & Cal
State San Marcos) that was held in May and stated that things are moving along and he was
very positive.
Mr. Frank reported that the EDC took a position and opposed Allied Domecq - planned housing
development at Callaway.
Staff provided a city report which included: announcement of the Budget & CIP workshop, DIF
discussion scheduled for May 27th Council Meeting, Best of California series airing in May & the
Southwest Airlines promotion the Temecula participated in. Temecula magnets passed out.
Staff was asked to provide magnets to include in the EDC golf packets.
Council member Pratt and staff attended the EDC Quarterly Luncheon on May 29'h at Temeku
Hills. Guest speaker Stevie Field, Manager of Business Development for Southwest
Riverside County Economic Alliance, spoke on the topic, "Attracting New Business With
GIS Technology." Ms. Field provided an online tour through the newly launched SW Site
Finder, the first online multi-jurisdictional geographic information system (GIS) used to attract
new businesses to Southwest Riverside County.
On May 19'h, staff met with Dave Stovall of the American Red Cross regarding City assistance
and location information.
Staff met with Dick Kennedy and Fred Grimes on May 22nd to brainstorm ideas for city
participation in and possible DA for expanded auto mall.
Staff attended the EDC Business Attraction Meeting on May 22nd. As a result of the EDC
Strategic Plan, action committees were formed to address different categories relating and
affecting economic development in Southwest Riverside County. The Business Attraction
Action Committee Chair is Stevie Field of the Economic Alliance of SWRC. The committee's
purpose is to develop ideas that will lead to the creation of marketing materials that will aid in
attracting business to the Southwest Riverside County area. Committee goals and objectives
include: branding campaign, site visits, and marketing efforts to attract high-tech companies.
On May 20th, staff attended the EDC Government Affairs Committee. Ken Carlisle of Guidant
is the Committee Chairperson for this committee. The committee will focus on ways to improve
communication and coordination of government agencies and increase our effectiveness at the
state and federal level.
Staff attended the EDC Permit Assistance Committee on May 23rd. Gary Youmans of
Community National Bank is the Committee Chairperson for this committee. The purpose of
this committee is to explore ways that the permit process can be improved among EDC member
agencies.
On May 28'h, staff attended the Economic Alliance of Southwest Riverside County Partner's
Meeting. An update on the Alliance GIS site was provided. Fifty-eight area brokers are
registered and there has been over 2900 sessions on GIS since January 22, 2003. There was
discussion on updating the SW Riverside County Business Resource Guide and CD-ROM. The
demographic brochure insert is currently bein9 updated. Also, Stevie Field provided an update
on the EDC Business Attraction Committee meeting, which will work with the Alliance in
developing a branding/advertising campaign.
CITYMGRI WOLNICKGIMA Y'03 DEPT.REPT.DOC
4
TOURISM
SDecial Events
Staff attended the Temecula Valley Film & Music Festival Preview at Scarcella's in Tower
Plaza. Jo Moulton thanked the sponsors and talked about the events planned for the Festival.
Staff attended the Media Preview Day for the Fallbrook Gourd Festival on May 13th There
were Gourd Art Displays, featured artist interviews, entertainment by Evren Ozan and a tour of
the Gourd Farm. The Seventh Annual Festival will take place on June 21 - 22 in Fallbrook. A
few of the Temecula wineries will be participating in this event.
FAMiliARIZATION TOUR
Ontario CONVIS hosted a FAM tour on May 23 - 24 in Ontario. The FAM included Vikingo
Viajes, which is the largest franchise travel agency in Guadalajara. It is part of Nordika,
which is a wholesaler. There were 14 managers/sales executives with Vikingo who specialize
in family & leisure travel and an AeroMexico representative that attended.
Recently, AeroMexico, which is Mexico's largest airline, announced a new schedule for its flights
from Ontario to Guadalajara with continuing service to Mexico City. It will offer travelers a
more convenient afternoon departure, versus the current late evening departure schedule.
AeroMexico is continuing to establish a firm presence in this growing market.
The City provided the attendees with our Tourism CD Roms, sample itineraries highlighting
romance, family and outdoor recreation that were translated in their dialect to take back to their
sales offices. This makes it easy for them to offer Temecula day trip ideas to their clients. Once
the visitor lands in Ontario. a drive to Temecula would be a nice outing for individuals and
families. The attendees also received Temecula souvenirs. During their dinner, they viewed the
Temecula Tourism Video.
Medial Advertisina/Outreach Materials
Staff reviewed and updated the editorial copy for the City of Temecula chapter in the San
Diegan tourist publication. The new edition will be ready for distribution in July.
The City & Temecula Valley Winegrowers Association has placed an ad in the Orange County
Area Driving Guide. The 40-page driving tour guide for the Anaheim/Orange Co. CONVIS will
showcase 12 itineraries, which will include a driving tour to "Temecula wine country". Some
other locations being featured in the guide includes: San Juan Capistrano, laguna Beach.
Newport Beach. Old Towne Orange, Huntington Beach, and Dana Point. There are only 4
pages of advertising and some of the advertisers include - Disneyland, Knott's Berry Farm, &
South Coast Plaza. There will be 1 00,000 guides printed and distributed at consumer trade
shows, in press kits, at their Visitor Center and publicized on their website and through travel
promotions.
Kathy Strong writes for Desert Magazine and she wrote a nice article on Ballooning in
Temecula. Staff and others in the community contributed information. Ms. Strong indicated that
she would be writing a future article on Pechanga. She also publishes a Bed & Breakfast
Book ( for 22 years) and she is updating the book this summer. Staff provided her with contact
information and will be sending her more information regarding the new Bed & Breakfast
accommodations planned for the area. (see attached)
CITYMGRI WOLNICKGIMA Y'03DEPT.REPTDOC
5
Staff provided Sandi Cain with Meetings West Magazine information. She will be featuring
Temecula in an upcoming issue.
Staff met with Fran Savage and Geri O'Brien regarding a new softbound book on Temecula
that they are publishing. Ms. Savage is responsible for the content and Ms. O'Brien is the
illustrator. The book will feature tourist attractions, events in the Temecula and a strong focus
on the Temecula wineries. Staff provided a tourism press kit, CD ROM and other information
for their use.
Staff worked with Mark Fisher on creating a new City ad for the 20th Annual Balloon & Wine
Festival Program. Attached is a copy of the ad and Mayor's Welcome.
Meetinas
Staff attended the Chamber Tourism Council Meeting held at Pala Casino on May 2nd. A tour
of the casino and the hotel rooms was provided. Pala Casino has been opened for 2 years and
the full spa and hotel will open on August 22nd. Carrie Ceballes, the Chamber's new Director of
Tourism, was introduced and she will be heading up the Chamber Convention & Visitor's
Bureau. Tourist destination reports were provided by the Winegrower's Association, Arts
Council, and Balloon & Wine Festival. Staff reported on city marketing/media activities
including: City/Winegrowers ad in Westways Magazine, Temecula event coverage in RV
Journal Spring issue, coverage in Spring Ontario Tourism Brochure. Temecula participation in
the California One Southwest Airlines Promotion, coverage in Desert Magazine, and Temecula
coverage in "The Best of CA Series" - supported by the CA Travel & Tourism Commission.
Staff announced that the Temecula Tourism CD ROM received 3 awards and that the video
from the CD is being shown by Todd Wiggins. Director of Sales for Pacific Palms Conference
Resort in Industry Hills, and Sue McClure Tours of Orange County, when they transport groups
to Temecula. Staff also informed group that Western Days in Old Town would be held May 17-
18.
On May 6th, Councilmember Roberts and staff met with Bill Harker, Board Member for the
Temecula Town Association to go over the concerns the City has with the organization and
their special events.
ATTACHMENTS
Temecula Valley Chamber of Commerce Activities Report
Economic Development Corporation of Southwest Riverside County
Activities Report
Southwest Riverside County Economic Alliance Activities Report - April
Temecula Valley Film Council Activities Report
Advertising/Media Coverage
CITYMGRI WOLNICKGIMA Y'03DEPT.REPT.DQC
6
RECEIVED
JUN 1 0 2003
TEMECUlA VAllEY CHAMBER OF COMMcg~re~jC DEVELOPMENT
I~
June 6, 2003
Sh2wn Nelson. City Manager
City of Temecula
43200 Business Park Drive
Temecuia. CA 92590
Dear Shawn,
P..ttached please find the May Monthly Activity Report as per our contract with the City of
Temecula.
This is the month of May at a glance:
Business Inquiry Highlights:
In the month of May, 5 businesses requested information on starting or relocating their business to
Temecula. They received a business packet. which includes a copy of the City of Temecula
demographics, relocation, housing, rentals, maps, organizations, etc.
Board of Directors Highlights:
The Chamber held a very successful Workers' Compensation Forum held on Thursday, May 15, 2003
at Embassy Suites Hotel Wine Country. Senator Hoilingsworth, Senator Bill Morrow, Assemblyman
Ray Haynes. Dayne Wagoner of Edge Development, Greg Tinlin of Union Bank and Ken Carlisle of
Guidant were guest speaker. Over 100 Business representatives attended the event and were video
taped for testimonials.
TVCC Board of Directors have requested staff to organize a task force of Board of Directors to
implement the reviewing of current issues and governmental bills that effect the business community.
Committee Highlights:
. Tourism & Visitors Council: The June Tourism Council meeting was held at Stuart Cellars on
June 5, 2003. For the 20'h Anniversary Temecula Balloon & Wine Festival City/Chamber booth
we received a great response for volunteers from both the City and the Chamber members.
Pechanga Resort & Casino will be opening a non-smoking room with around 600 slot machines.
The Art Council will be presenting Painted Ponies in Temecula. Embassy Suites Hotel Wine
Country was just approved for a $2.5 million renovation of their property off Rancho California
Road. Friendship Transportation has just been iunded for a purchase of 28 new vehicles.
Currently Friendship Transportation offers shuttle service to the Balloon & Wine Festival, The
Gourd Festival and other events.
. Education Committee: The committee will begin to construct an outline for a poster contest for
the diversity awareness campaign. using tile slogan "Labels are For Soup". The third annual job
fair had 26 employers and more than 350 students aliended. The committee has located a group
in Rancho Cucamonga who performs for students on issues of diversity. Committee will make a
presentation to the Board of Directors for approval.
26790 Ynez Court. Temecula. CA 92591
Phone: (909) 676-5090,. Fax: (909) 694-0201
www,temecula,org . e-mail: info@temecula.org
. Ways & Means Committee: The 3'd Annual Economic Outlook Conference featuring Dr. John E.
Husing took place Thursday, June 5, 2003 at Temecula Creek Inn. Dr. Husing presented his
most recent demographic and statistical information on Temecula and Riverside County. Over
297 business professionals in the area attended the event. The attendees were all given a
souvenir bag which included a cop~ of Dr. Husing's presentation. The Ways & Means Committee
is in the planning stages for the 12' Annual Monte Carlo Extravaganza. This year's event is
scheduled for September 17, 2003 at Wilson Creek Winery. The event will include Vegas style
gambling, food from local restaurants and much more!
. local Business Promotions Committee: The local Business Promotion Committee held the
Shop Temecula First Kick-Off party on May 29,2003 at the Chamber. 40 member businesses are
signed up for the June and November Shop Temecula First Campaign. The website link that lists
the participants is now available on the Chamber page. The Businesses of the Month for June
selected by the Government Action committee are University of California Riverside Extension
and Verizon. Bear Creek Golf Club was awarded the Chamber Spotlight, and Hogi Yogi is the
Mystery Shopper winner for the month of June.
. Government Action Committee: Dr. Francis will request CEO Scott Crane to be invited to the
next Board of Directors meeting to discuss the newly proposed plans for Universal Healthcare
facilities. Area Code changes - Within the next two weeks the Public Utilities Commission will
make a recommendation regarding proposed changes to the 909 and 310 area codes. Riverside
may either change their area code to 951 or the use of an overlay area code is also being
considered. Public hearings on this item will be held in the month of July.
. Membership Committee: The Member to Member Discount Program has been launched and
the committee is very excited about future participation. Minuteman Press has generously
offered to print the discount card at no cost to the membership. Community National Bank and
Stay Green are the two Business Spotlights for the month of June. Over 300 members attended
the May mixer hosted by Presto's Gourmet Express.
Tourism Highlights (Bulk brochure distribution)
Activity Report:
. 75 Visitor Guides, 75 Winery Brochures, 75 Pechanga Brochures and 75 Tourism Maps to Mrs.
James Craig to distribute at a family reunion.
. 30 Visitor Guides, 30 Winery. and 30 Tourism Maps to Bonnie Flatts to distribute to visitors.
. 40 Winery Brochures and 40 Tourism Maps to Bob lemons to distribute to visitors.
. 210 Visitor Guides and 150 Winery Brochures to Pechanga Resort & Casino to distribute to
visitors.
. 75 Visitor Guides and 75 Tourism Maps to Jenn Moss to distribute to wedding guests.
. 210 Visitor Guides to Outdoor Resorts to distribute to guests.
. 100 Visitor Guides. 100 Winery Brochures and 100 Tourism Maps to Metropolitan Water District
to distribute to event participants.
. 100 Visitor Guides and 100 Winery Brochures to Best Value Inn Guest House to distribute to
visitors.
2
Activity Report:
. Tourism calls for the month of May - 1,862
. Phone calls for the month of May - 3,414
. Walk-ins for the month of May - 2,616
. Web Page User Sessions for the month of May - 5,301
. Website Tourism Survey - "How did you hear about Temecula" - 322 responses were received:
. Article - 2%
. Friend - 30%
. Link - 6%
. Magazine - 3%
. Other - 39%
. Radio - 3%
. Search - 12%
. TV - 8%
Also, attached are the meeting minutes for the Tourism and Visitors Council, Education, local
Business Promotions, Government Action, Membership and Marketing and Ways & Means
committee. If you have any questions regarding this information, please call me at (909) 676-5090.
Thank you.
cc: Mayor Jeff Stone
Councilman Jeff Comerchero
Councilman Sam Pratt
Jim O'Grady, Assistant City Manager
Gloria Wolnick, Marketing Coordinator
Mayor Pro Tem Mike Naggar
Councilman Ron Roberts
Shawn Nelson, City Manager
Gary Thornhlll, Deputy City Manager
TYee Board of Directors
3
Temecula Valley Chamber of Commerce
Monthly Activity Report
May 2003
Chamber Vis. Center Year-To-Date
PHONE CALLS This Month This Month Total
TOURISM
Tourism Referrals 273 1,313
Calendar of Events 153 783
Special Events 239 602
General Information 1,197 5,995
TOTAL TOURISM CAllS 1,862 8,693
Relocation 185 903
Demographics 115 572
Chamber 907 4,624
Miscellaneous 345 1,660
TOTAL PHONE CALLS 3,414 16,452
WALK-INS
Tourism 243 151 1,864
Calendar of Events 116 726
Special Events 99 400
General Information 805 155 5,321
Relocation 158 856
Demographics 99 565
Chamber 482 2,771
Miscellaneous 308 1,633
TOTAL WALK-INS 2,310 306 14,136
MAILINGS
Tourism 150 818
Relocation 112 516
Demographics 82 483
TOTAL MAILINGS 344 1,817
E-MAIL
Tourism 106 498
Relocation 97 423
Miscellaneous 212 895
TOTAL E-MAil 415 1,816
WEB PAGE USER SESSIONS 2,669 15.653
GRAND TOTALS This Month Year-To-Date
PHONE CALLS 3,414 16,452
WALK-INS 2,310 14,136
MAILINGS 344 1,817
E-MAil 415 1,816
WEB PAGE USER SESSIONS 2,669 15,653
PHONE CALLS
TOURISM
Tourism Referrals
Calendar of Events
Special Events
General Information
TOTAL TOURISM CAllS
Annual Volume Comparisons
Chamber Chamber
May 2002 May 2003
386 273
216 153
320 239
1,217 1,197
2,139 1,862
153 185
76 115
1,083 907
268 345
3,719 3,414
314 243
168 116
59 99
1,169 805
209 158
225 99
861 482
275 308
370 306
3,650 2,616
135 150
128 112
105 82
368 344
74 106
57 97
167 212
298 415
5,301
Relocation
Demographics
Chamber
Miscellaneous
TOTAL PHONE CALLS
WALK-INS
Tourism
Calendar of Events
Special Events
General Information
Relocation
Demographics
Chamber
Miscellaneous
Visitor Center Walk-Ins
TOTAL WALK-INS
MAILINGS
Tourism
Relocation
Demographics
TOTAL MAILINGS
E-MAIL
Tourism
Relocation
Miscellaneous
TOTAL E-MAIL
WEBSITE USER SESSIONS
. Chamber referrals reflect faxes, walk-ins and phone calls
Percentage
-29%
-29%
-25%
-2%
-13%
21%
51%
-16%
29%
-8%
-23%
-31%
68%
-31%
-24%
-56%
-44%
12%
-17%
-28%
11%
-13%
-22%
-7%
43%
70%
27%
39%
EDca
Southwest Riverside CountY.
June 12, 2003
Jim O'Grady
City of Temecula
PO Box 9033
Temecula, CA 92589
RE: Activity Summary - May 2003
Business and Workforce Development
Staff responded to the following 7 business and workforce development requests in May 2003:
Date Lead Source Request Action Taken
5/5/03 Phone Client starting new business Provided client with state website for further
- casino dealer training research. Client will contact when ready to
schoo 1- needed contact info lease a commercial site for classes.
to agency that sanctions and
certifies dealer training
courses
5/6/03 Website Client seeking business Provided client with contacts to known
incubator program for a incubator facilities in Riverside County.
R&D facility of functional
foods, cosmetic and natural
ingredient drug research
with strong agricultural
research component.
5/6/03 Website Client seeking availability of Forwarded client request to Lori Moss, City of
tax incentives for 14,000 s.f Murrieta.
retail project in Murrieta,
such as TIF, sales tax
rebates, property tax
abatements and enterprise
and redevelopment zones.
5/15/03 Phone Client seeking information Referred client to SSDC
on business plans
5/19/03 Website Referred by Jim O'Grady, Provided client with list ofEDC brokers that
City of Temecula - Existing would assist in site search.
business conducting a site
search for a new facility in
T emecula.
Jim O'Grady
City ofTemecula
Activity Summary - May 2003
Page 2 00
5/23/03 Website Client seeking contact info Referred client to Riverside County
to get his company onto bid Information Technology department.
list for security and phone
svstem for Riverside County
4/23/03 Phone Referred by EDC member - Met with client and provided tour of
Client seeking employment. Workforce Development Center. Provided list
of contractor employers in region. Client has
already attended 2 free WOC workshops for
resume writing and transferable job skills
Community Outreach
Staff and/or directors attended the following meetings/events to promote or assist economic
development/community outreach:
. Great Oaks High School Groundbreaking (5/1)
. United Way 2003 Campaign Cabinet Meeting (5/5)
. TVCC Partnel"llhip in Education Committee Meeting (5/5)
. Lake Elsinore Valley Chamber of Commerce Steering Committee Meeting (5/6)
. Lake Elsinore Valley Chamber EDC Connections Lunch (5/8) - Topic: Lake Elsinore
Economic Development Outlook
. So Cal Gas & SDG&E Groundbreaking Ceremony for Murrieta Facility (5/9)
. Murrieta Chamber of Commerce Leadel"llhip Program (5/12) - Staff presented an
overview of the EDC's focus and economic development activities.
. Temecula City Council Meeting (5/13) - Oppose zone change by Allied Domecq
. Meeting with Jim Cauhape (5/16) - Mr. Cauhape is retired from California Employment
Development Department and will participate on EDC Committees
. Temecula Chamber Student of the Month Awards (5/20)
. Workforce Development Center All-Staff Meeting (5/27) - Monthly WOC partner
meeting.
. Meeting with Judy Fuliqar ofRKR Media (5/27) - To discuss proposal for EDC website
enhancements and online newsletter.
. EDe Quarterly Luncheon (5/29) - Stevie Field presented the Economic Alliance SW Site
Finder GIS website.
. Workel"ll' Compensation Forum (5/30) - Staff spoke on behalf of businesses for Workers'
Compensation reform.
Business Retention
. Business Relations Committee Meeting (5/1) - See attached meeting minutes for discussion
topics.
. Retention Visit (5/8) - Accompanied Harry Shank and Jim O'Grady on visit with Renae
Rock of Taylor Frager Construction.
Jim O'Grady
City of Temecula
Activity Summary - May 2003
Page 3 00
Administration/Ol'l!:anization
. EDC Transportation and Infrastructure Committee (5/8) See attached meeting minutes
for discussion topics.
. EDC Education Committee (5/9) See attached meeting minutes for discussion topics.
. EDC Board of Directors Meeting (5/15) - See attached meeting minutes for discussion
topics. Board of Directors took action to send a letter to legislators to oppose AB 1211
. EDC Government Committee (5/20) See attached meeting minutes for discussion topics.
. Business Attraction Advisory Committee (5/22) - Facilitated by Stevie Field. See attached
meeting minutes for discussion topics.
. GoIfTournament Committee Meeting (5/12 & 5/22)
. Administration - Staff managed the daily operations of the EDC office; coordinated various
EDC committee meetings; coordinated action items for quarterly lunch golf tournament, and
EDC director elections; managed EDC website updates; mailed two EDC membership
solicitations; and emailed the following business development Iconnnunity announcements:
:.- Workers' Compensation Forum
:.- Invitation to Online Open Dialogue - California Education Master Plan
:.- City of Temecula DIF Structure
:.- EDC Quarterly Lunch Announcement
:.- UCR Connect Links Program - "The Plight ofthe Entrepreneur"
:.- The Hemet/Temecula Employer Advisory Council - "Workers' Comp is NOT a
Paid Vacation"
This concludes the activity summary for May 2003. Should you have questions or need further
detail, please call me at 600-6064.
Respectfully,
Diane Sessions
Executive Director
ECONOMIC DEVELOPMENT CORPORATION
OF SOUTHWEST RIVERSIDE COUNTY
BUSINESS RELATIONS COMMITTEE MEETING
Thursday, May I, 2003 - 9:00 a.m.
Workforce Development Center, Executive Board Room
27447 Enterprise Circle West, Temecula, CA
Committee Members Present:
Alva Diaz, Wells Fargo Bank
Dennis Frank, UCR Extension
Stan Harter, Mirau, Edwards, Cannon, Harter & Lewin
Keith Johnson, Mission Oaks National Bank
Michael Lewin, Mirau, Edwards, Cannon, Harter, & Lewin
Lori Moss, City of Murrieta
Jim O'Grady, City ofTemecuIa
Paul Ramsey, Keeton Construction
Harry Shank, Southwest Community Bank
Guests:
Chris Masino, CDM Group, Inc.
Liz Yuzer, Economic Development Corporation
Call To Order
. Michael Lewin called the meeting to order at 9:05 a.m. He introduced his colleague, Stan Harter, who would
chair the committee beginning July 2003.
Follow-up Action Reports
. Isomedix-Steris - Jim O'Grady reported that Chris Bares attended the training exercise at International
Rectifier and spoke with fire personnel. He also received information regarding emergency/homeland
security planning. The requested information regarding the EDC was sent.
. Transducer Techniques - Keith Johnson reported that Bob Lopez contacted Gary Baker to discuss past
electric hook-up charges and Mr. Baker was satisfied with the explanation.
Companv Contact Reports
. MAC Products - Chris Masino reported that Mack Jones. Sr., president of MAC Products Inc. in Temecula,
completed the survey that was faxed to him. MAC Products manufuctured automotive and tubing products.
They relocated from Long Beach to southwest Riverside County in 1994 to find affordable housing for key
personnel. Mr. Jones reported they presently have 58 employees but would cut their workforce in half in
September. He indicated that 60% of their employees live in the TemeculaIMurrieta area, 10% are in Lake
Elsinore, 25% in other parts of Riverside County and 5% live in Los Angeles County. Mr. Jones considered
the traffic to be the primary disadvantage to the area. Their primary customers were dealers who were
located in the United States, Canada and Mexico. Mr. Jones ranked their business as medium to large and
indicated that sales in the past year were up. Their principal suppliers of steel, boxes and welding supplies
were located in Los Angeles and Mexico. They expected to expand their plant in the future but the
expansion would take place in Mexico or China. They had no contingency plans for electrical outages. Mr.
Jones indicated that the cost of Workers' Compensation insurance and general business practices were
primary issues for their company.
. Flex Equipment - Lori Moss reported that she, Rex Oliver and Rob Johnson paid a visit to Flex Equipment
in Murrieta. They met with Randy Frisch, Traffic Coordinator, who explained the company does research
and development for fitness equipment and also manufactured commercial fitness equipment. The company
moved from Corona five years ago in order to find a larger facility.
Business Relations Committee Meeting
Minutes-May I, 2003
Page 2 of3
Disadvantages of the area included the lack of affordable housing for employees and difficulty in finding
qualified employees. Primary customers were gyms, celebrities' homes, hospitals and rehabilitation facilities.
Primary competitors were Cybex and Life Fitness. Mr. Frisch was pleased that Flex Equipment was recently
sold to a group in Chicago who were considered efficiency experts. He reported that sales in the past year
were down 3-5% due to higher expenses including Workers' Compensation fees. Mr. Frisch reported that
management personnel live within 5 miles of the plant and the rest of their 118 employees commute from
Los Angeles and Orange Counties. The number of employees was expected to remain the same but they
may move the fabrication department to Mexico due to Workers' Compensation fees. Mr. Frisch indicated
they were happy doing business in SW Riverside County and would be willing to be a contact person for
other companies considering relocating to this area. Action Item: Randy Frisch requested additional
information about the EDC.
. Edge Development - Jim O'Grady reported that Dayne Wagoner had given him a tour of the new Edge
Development facility in Temecula. Mr. Wagoner reported their specialty was school construction. The
company relocated to Temecula 7 years ago due to the area's growth. They have 100 employees at this
location. Mr. Wagoner also reported that they provide financial management through a subsidiary.
. Professional Hospital Supply - Keith Johnson reported that he had a phone interview with John Augustine,
CFO at Professional Hospital Supply in Temecula. Distributors of medical and surgical supplies, Mr.
Augustine reported they relocated from Carlsbad, CA 15 years ago because of affordable real estate. They
have 500 employees and occupy two buildings. They would like to build a new facility but were having
difficulty finding a large enough location. Mr. Augustine indicated they serve hospitals located primarily in
the southwestern United States. Primary competitors included Cardinal, Owens, and Minor and McKesson
and were located nationwide. They ranked their business as medium and sales in the past years were up due
to further market penetration and geographic expansion. Fifty percent of their employees lived in the
Temecula/Murrieta area, 25% were in Lake Elsinore and the remaining 25% were in various communities.
They planned to expand both their employee base and plant. They did have a back up power supply for
computers in the case of an electrical outage. Mr. Augustine reported they were happy doing business in SW
Riverside County and the City of Temecula had been very responsive to their needs. Action Item: Jim
o 'Grady and city staff were continuing to work with John Augustine in their search for a new site.
Goal Prol!:ress Report
. Michael Lewin announced that visits and phone interviews in the eleventh month of the fiscal year were as
follows:
27 visits @ 3 points each + 33 phone interviews @ I points each = 60 visits/calls @114 points
YTD
Goal
Actual
Variance
VISIT
27
12
-15
PHONE
33
14
-19
POINTS
114
50
- 64
Business Relations Committee Meeting
Minutes - May I, 2003
Page 3 of3
New Committee Assil!:nments
. New committee assignments were as follows:
Bianchi International - Alva Diaz
Outdoor Channel - Alva Diaz
Taylor Frager - Harry Shank
Tamura Corp. - Jim O'Grady
Long Machine - Michael Lewin
ODen Discussion
. Announcements - City of Temecula - Jim O'Grady reported that developer impact fees were expected to
double, and along with TUMF fees, Temecula would have the highest city fees in Riverside County. These
fees would be discussed at the May 27 City Council meeting. City of Murrieta - Lori Moss reported that
nwnerous development projects were anticipated in the Murrieta area before TUMF fees went into effect July
1,2004.
Adiournment - The meeting adjourned at 9:50 a.m.
DRAFT
ECONOMIC DEVELOPMENT CORPORATION DRAFT
OF SOUTHWEST RIVERSIDE COUNTY
BOARD OF DIRECTORS GENERAL MEETING MINUTES
Thursday, May IS, 2003 - 9:00 a.m.
Workforce Development Center
27447 Enterprise Circle West, Temecula, CA
BOARD MEMBERS
Marlene Best, City of Lake Elsinore
Ken Carlisle, Guidant Corporation
Stevie Field, SWRC Economic Alliance
Dennis Frank, VCR Extension
Keith Johnson, Mission Oaks National Bank
Lori Moss, City ofMurrleta
Rex Oliver, Murrieta Chamber of Commerce
David Phares, D. 1. Phares & Associates
Greg Prudhomme, Kuebler, Prudhomme & Co.
Gary Youmans, Community National Bank
EDC STAFF
Diane Sessions
Liz Yuzer
MEMBERS AND GUESTS
Maryann Edwards,
Temecula Valley Unified School District
Paul Ramsey, Keeton Construction
Gloria Wohrick, City of Temecula
CALL TO ORDER
. Board President Dennis Frank called the meeting to order at 9:05 a.m.
MINUTES
. The Board reviewed the minutes of the April 17, 2003 Board of Directors Meeting. Motion was made by
Keith Johnson, seconded by Gary Youmans and carried unanimously to approve the minutes of the April 17,
2003 Board of Directors Meeting as presented.
FINANCIAL REPORT
. The Board reviewed the April 30, 2003 Financial Report that showed total monthly revenues of$2,680, total
expenses of $9,405 and total cash-in-bank of $69,601. Motion was made by Gary Youmans, seconded by
Keith Johnson and carried unanimously to approve the April 30, 2003 Financial Report.
NEW BUSINESS
. Director Elections Update: Diane Sessions reported that ballots were mailed to members and would due
back no later than 5:00 p.m. on Friday, May 23. Nominations for officer elections would then begin for the
offices of President, Vice President, Secretary and Treasurer.
. Ratify 2003 Board of Directors Election Ballot: Motion was made by Keith Johnson, seconded by Gary
Youmans and carried unanimously to rattlY the 2003 Board of Directors Official Election Ballot.
. Appoint Inspectors of Election: Motion was made by Rex Oliver, seconded by Ken Carlisle and carried
unanimously to appoint David Phares, Diane Sessions and Liz Yuzer as Inspectors of Election to tally the
election ballots.
. EDC Committee Updates: Transportation & Infrastructure Committee: Chair David Phares reported the
Committee identified the following areas for focus: 1) Riverside County Integrated Plan (RCIP) that included
open space issues, and new and existing transportation corridors; 2) transportation logistics;
Exhibit 3.0
Economic Development Corporation
of Southwest Riverside County
Board of Directors Meeting - May 15, 2003
Minutes - Page 2 of3
and 3) March Air Reserve Base and French Valley airport - cargo issues. Their next meeting was scheduled
for June 12. Education Committee: Chair Maryann Edwards reported the Committee selected 4-5 goals
based on the Strategic Plan objectives. They would gather information on vocational education programs in
Lake Elsinore, Murrieta and Temecula school districts and would work to communicate those programs to
the public. Their next meeting would be June 13. Permit and Planning Committee: Co-Chairs Rex Oliver
and Gary Youmans reported the Committee would provide a sounding board to local government and look at
issues regarding TUMF fees and construction and development issues. They planned to meet individually
with representatives of each city and the county and would then set a first meeting for the entire committee.
Business Attraction Committee: Chair Stevie Field reported the Committee would hold its first meeting on
May 22. They would look at ideas from the SWOT and form a focus group on a regional branding campaign
for business attraction. Government Committee: Chair Ken Carlisle reported the Committee would hold its
first meeting on May 20. He reminded board members of the Workers' Compensation Legislative Summit
held in Temecula this evening at 5:30 p.m. Business Relations Committee: Dennis Frank announced that
Stan Harter would be the new chair of the Business Relations committee starting in July.
. May 29, 2003 Quarterly Luncheon: Diane Sessions announced the next Quarterly Luncheon would be
held Thursday, May 29 at 11 :30 a.m. at Temeku Hills Golf & Country Club. Stevie Field would present an
online tour through the newly launched SW Site Finder, the first online multi-jurisdictional geographic
information system (GIS).
CONTINUING BUSINESS
. Golf Tournament Update - Gary Youmans reported that details were being wrapped up for the annual golf
tournament scheduled for June 9. Clear Channel 94.5 and 103.3 from San Diego agreed to donate air time to
publicize the event and commercials had begun to air.
OPEN DISCUSSION
. EDC Administrative Update - The Board reviewed the April 2003 Activity Summary submitted by Diane
Sessions.
. SWRC Economic Alliance Update - Stevie Field announced that visitor hits on the GIS website were
increasing and 600 hits were recorded in a single day.
. City Updates - City of Lake Elsinore - No report available. City of Murrieta - Lori Moss reported on the
City's ongoing budget process with the largest need for more personnel in the police department; the new
police chief would be announced next week; business retention visits continued; and reconstruction bids for
Washington Avenue would be opened next week. Ms. Moss also explained the Council's concern on
ABl221 which would exchange sales tax revenues for property tax revenues. This would result in a $9M
loss to the City of Murrieta. Motion was made by Gary Youmans, seconded by David Phares and carried
unanimously to direct Dennis Frank to send letters on behalf of the EDC to Assemblymen Haynes and
Senator Hollingsworth in opposition to ABl221. City of Temecula - Gloria Wolnick reported the City
would hold a budget and capital improvement workshop tonight; a very aggressive capital improvement
program was planned; the Council would discuss increasing Development Impact Fees at the May 27
meeting; the DIFs were expected to double. Ms. Wolnick also reported the California Department of Travel
Economic Development Corporation
Exhibit 3.1
of Southwest Riverside County
Board of Directors Meeting - May 15, 2003
Minutes - Page 3 of3
and Tourism partnered with Southwest Airlines and would promote the Inland Empire on all flights today.
Each flyer would receive a goody bag with trivia games and other prizes from the area. The Temecula area
would be highlighted on the Best of California series which would air on Sunday, May 18.
Education Updates - Mt. San Jacinto Community College - Dennis Frank reported that Cal State San
Marcos and Mt. San Jacinto continued to explore partnerships.
. Cbamber Updates - Lake Elsinore Chamber of Commerce - No report available. Murrieta Chamber of
Commerce - Rex Oliver reported tbe Chamber participated in a legislative summit in Sacramento; Business
of the Year nominations were being accepted and their Installation Dinner was scheduled for June 7 at Pala
Mesa Resort. Temecula Valley Chamber of Commerce - No report available.
ADJOURNMENT
At 10: I 0 a.m., motion was made by Keith Johnson, seconded by Gary Youmans and carried unanimously to
adjourn the board meeting.
Respectively submitted by:
Elizabeth Yuzer
Recording Secretary
Phil Oberhansley
Board Secretary
Exhibit 3.2
ECONOMIC DEVELOPMENT CORPORATION
OF SOUTHWEST RIVERSIDE COUNTY
EDUCATION COMMITTEE MEETING
Thursday, May 9, 2003 -10:00 a.m.
Mission Oaks National Bank
41530 Enterprise Circle South, Suite 100, Temecula, CA
Committee Members Present:
Maryann Edwards, Temecula Valley Unified School District
Ron Krimper, Mt. San Jacinto College
Diane Sessions, Economic Development Corporation
Harry Shank, Southwest Community Bank
Dr. Robin Steinback, Mt. San Jacinto College
Roger Ziemer. Southern California Gas Companv
Call To Order
Committee Chair Maryann Edwards called the meeting to order at 10:05 a.m. and led introductions.
Committee Purpose
Mrs. Edwards suggested the Committee's purpose could be to strengthen the relationship between education and
economic development and help maintain and to enhance quality education in K-12 - University. Mr. Krimper
added that promoting and supporting higher-education in the region should also be a committee focus.
Committee members agreed the purposes were appropriate.
Committee Goals and Obiectives
The Committee reviewed the strategic plan objectives for education issues that were identified during the
November 2002 Regional Strategic Planning Conference. Discussion was held on which objectives the
Committee would focus on at present. It was agreed the following objectives would take priority:
. Support a Higher-Education Center in Southwest Riverside County
o Provide positive support ofCSUSM, MSJC and UCR as primary higher-education partners
o Follow planning process with the City ofTemecula
o Attend planning meetings
Mr. Krimper reported the possibility of a Southwest County education center was still conceptual and
negotiations to secure a primary leaseholder for such a center were undetermined. He reported the City of
Temecula was meeting with the developer on May 14th to discuss the matter further. MSJC had completed a
ten-year projection of higher-education needs that determined expanded site facilities and programs were
critical due to rapid increases in student population.
. Monitor legislative actions related to education issues
o Advocate for funding of education programs K-12 - University
o Advocate for funding of Regional Occupational Programs (ROPs) with no administrative changes
to the method of funding (allow funding administration to stay within the school districts and not
on a county or state level).
Mrs. Edwards reported that Barbara Tooker, TVUSD Board Member, was very active in legislative matters
and acted as a liaison for the school district. She recommended that Mrs. Tooker make a presentation at the
June committee meeting on the State of California Master Plan for Education. Mrs. Edwards also
recommended that Sheldon Lisker monitor legislative issues and activities for UCR and Mr. Krimper for
MSJC. Mr. Krimper reported that MSJC currently uses a lobbyist in Sacramento. He suggested that Don
Barrett ofCSUSM should be invited to sit on the Committee and monitor legislative issues for CSUSM.
Education Committee Meeting
Minutes - May 9, 2003
Page 2 of2
. Expand partnerships with K-12 and higher-education schools
o Determine what education groups/organizations and business alliances currently exist in LEUSC,
MVUSD, TVUSD, MSJC, UCR and CSUSM. The following committee members will represent
and research the following education affiliations:
Sheldon Lisker - UCR
Sonja Wilson - Lake Elsinore Unified School District
Harry Shank - Murrieta Valley Unified School District
Diane Sessions - Temecula Valley Unified School District
Don Barrett - CSUSM
Ron Krimper - MSJC
. Public relations to promote education in Southwest Riverside County
o Advocate for "enhanced" quality education in K-12 - university through media opportunities
o Establish various media relations for regular press releases and news articles
Committee Meetinl! Dates
The Committee agreed to schedule future meetings on the second Friday of every month at 10:00 a.m. at Mission
Oaks National Bank, 41530 Enterprise Circle South, Suite 100, Temecula. The nex1 scheduled meeting would
be held on June \3,2003.
Adiourn
The meeting adjourned at 11 :00 a.m.
Action Item:
1) Ron Krimper to provide an update on the proposed higher-education center at the June meeting.
2) Ron Krimper to provide list of existing education/business groups affiliated with MSJC.
3) Sonja Wilson to provide list of existing education/business groups affiliated with LEVSD.
4) Harry Shank to provide list of existing education/business groups affiliated with MVUSD.
5) Diane Sessions to provide list of existing education/business groups affiliated with TVUSD.
6) Dr. Steinback to provide Diane Sessions with contact information for Don Barnett.
7) Diane Sessions to contact Don Barrett to invite to sit on Committee (and to determine his role as
legislative liaison for CSVSM).
8) Maryann Edwards to provide Harry Shank with information on Temecula Chamber's Partnership in
Education Committee material.
9) Maryann Edwards to contact The Californian to advise of the Committee's formation and purpose.
10) Maryann Edwards to contact Barbara Tooker for a copy of the State of California Master Plan for
Education
11) Maryann Edwards to ask Barbara Tooker to make a presentation at the June meeting on the State of
California Master Plan for Education
12) Diane Sessions to inquire on education/business partnerships or programs with Lake Elsinore Valley
and Murrieta Chambers of Commerce (similar to Temecula Chamber's Partnership in Education
Committee).
13) Diane Sessions to contact Sheldon Lisker to determine his role as legislative liaison for VCR.
14) Diane Sessions to create and distribute a committee contact roster and organizational chart.
ECONOMIC DEVELOPMENT CORPORATION
OF SOUTHWEST RIVERSIDE COUNTY
GOVERNMENT ACTION COMMITTEE MEETING
Tuesday, May 20, 2003 - 8:30 a.m.
Workforce Development Center
27447 Enterprise Circle West, Temecula, CA
Committee Members Present:
Ken Carlisle, Guidant Corporation
Stevie Field, Southwest Riveriside County Economic Alliance
Greg Morrison, Elsinore Valley Municipal Water District
Jim O'Grady, City of Temecula
Diane Sessions, Economic Development Corporation
Call To Order
Committee Chair Ken Carlisle called the meeting to order at 8:50 a.m. and led introductions.
Focus Session
Ken Carlisle facilitated a focus session to identiJY the Committee's stakeholders and their key expectations, the
committee purpose and mission statement. Stakeholders and their key expectations were identified as follows:
a e 0 ers elr ey xpec a Ions 0 e omml ee
Elected officials on all government levels - city, I) To be "kept in the loop" - access to key opinion I
county, state, federal, school districts, colleges, leaders
universities 2) Information sharing
3) Act as a conduit for community information
4) Communicate the needs and concerns of the
business community
5) Partnerships
Businesses I) Provide forums to exchange ideas among other
businesses
2) Act as advocate / educator with straight answers
3) Accessibility to information from elected officials
and their staff
Other advocacy groups - EDCs, Chambers of 1) To be "kept in the loop" - access
Commerce, UCR Connect, Southwest Riverside 2) Information sharing
County Manufacturers' Council, Murrieta-Temecula 3) Partnerships
Group, Valley Group, Agriculture Groups (Farm 4) Blended view of issues
Bureau, vintners/winegrowers, tourism organizations,
other non-profits
EDC Board I) Leadership
2) Recommendations on key issues
3) Fact-finding
4) Proactive, early warning system
5) Point of communication
6) Information to make board decisions and actions
St k h ld
Th' K E
t f
fth C
'tt
EDC Government Action Committee Meeting
Minutes - May 20, 2003
Page 2 of3
Public entities - all public utilities (power, water, gas,
telecommunications, waste management), government
employees (Employment Development Department)
schoo I district staff
I) To be "kept in the loop" - access to key opinion
leaders
2) Information sharing
3) Act as a conduit for community information
4) Communicate the needs and concerns of the
business community
5) Partnerships
6) Provide forums to exchange ideas among other
businesses
7) Act as advocate / educator with straight answers
8) Accessibility to information from elected officials
and their staff
Committee Mission Statement
Mr. Carlisle provided the Committee a template that was used to draft a mission statement of the EDC
Government Action Committee. The Committee drafted the mission statement as follows:
The EDC Government Action Committee will provide proactive communication, education and advocacy
for business-related issues throughout the region. We will accomplish this by working with government
leaders at local, state and federal levels; providing forums for discussion and the exchange of information;
and collaborating with other business advocacy groups so that business and government leaders may work
together to develop and implement programs and policies that benefit the business community as well as the
community-at-large.
Committee Charter
Mr. Carlisle provided a charter template document and asked committee members to bring charter
recommendations to the June meeting in the following areas:
. Connnittee goals and strategies to be addressed
. Boundaries
. Improvement targets and measures
. Resources available
. Constraints (budget, etc.)
. Committee strategies
Committee Meetinl! Dates
The Committee agreed to schedule future meetings on the third Tuesday of every month at 9:00 a.1ll. at the
Workforce Development Center, 27447 Enterprise Circle West, Temecula. The nex1 scheduled meeting would
be held on June 17, 2003.
Adiourn
The meeting adjourned at 9:50 a.m.
EDC Government Action Conunittee Meeting
Minutes - May 20, 2003
Page' 3 of3
Action Items:
1) Diane Sessions to create and distribute a committee contact roster and organizational chart.
2) Diane Sessions to email the Committee charter document to committee members.
3) Committee members to complete charter document for review at June meeting.
ECONOMIC DEVELOPMENT CORPORATION
OF SOUTHWEST RIVERSIDE COUNTY
TRANSPORTATION & INFRASTRUCTURE COMMITTEE MEETING
Thursday, May 8, 2003 - 8:00 a.m.
Workforce Development Center, Executive Board Room
27447 Enterprise Circle West, Temecula, CA
Committee Members Present:
Stevie Field, SWRC Economic Alliance
Keith Johnson, Mission Oaks National Bank
Rosalie Mule, Waste Management of the Inland Empire
Paul O'Neal, Paul O'Neal & Associates
Peter Rosen, Rancon Real Estate
David Phares, D.L. Phares & Associates
Diane Sessions, Economic Development Corporation
Sonia Wilson, Lake Elsinore Unified School District
Roger Ziemer. Southern California Gas Companv
Guests:
Bill Prouty, Riverside County Manufacturing
Industry Council
Call To Order
Committee Chair David Phares called the meeting to order at 8:05 a.m. and led introductions.
Committee PurDose
David Phares suggested the Committee's purpose would be to monitor transportation and infrastructure issues
and report back to the EDC Board of Directors for recommendations and actions. Committee members agreed
this was an appropriate purpose that was aligned with regional strategic plan objectives for economic
development.
Committee Goals and Obiectives
The Committee reviewed the strategic plan objectives for transportation and infrastructure issues that were
identified during the November 2002 Regional Strategic Planning Conference. Discussion was held on which
objectives the Committee would focus on. It was agreed the following objectives would take priority:
. Riverside County Integrated Plan (RCIP)
o Habitat component under the Multi-Species Habitat Conservation Plan (MSHCP) as it relates to
current zoning for business and transportation issues.
o How Southwest Riverside communities, City of Lake Elsinore, Murrieta and Temecula, will be
impacted by the MSHCP.
o Community and Environmental Transportation Availability Process (CETAP) and Measure A
funds as they relate to transportation issues within the RCIP.
. New transportation corridors
o Study various proposed corridors including south corridor in the Lake Elsinore area.
o Research proposed "tunnel" to Orange County and advocate for a new east/west corridor to
Orange County.
o Education / outreach to elected officials Southwest residents relating to transportation funding
mechanisms (i.e. Measure A) and where those funds will be allocated in Southwest Riverside
County.
o Partner in the Interregional Partnership Project (IRP) with San Diego Association of
Governments (SANDAG) and Western Riverside County Council of Governments (WRCOG).
o IdentifY public transportation services of Riverside County Transportation Commission (RCTC)
and Riverside Transit Authority (RTA).
o Transportation Uniform Mitigation Fees
Transportation and Infrastructure Committee Meeting
Minutes - May 8, 2003
Page 2 on
. Transportation Logistics
o Study transportation logistics and product movement issues.
o California trucking industry may be in jeopardy as many companies moving to Nevada and
Arizona.
o Advocate for local trucking and transportation systems.
. March Air Cargo Facility and French Valley Airport
o Follow issues and advocate for development of March Air Cargo facility and French Valley
Airport.
. The Committee agreed to invite a representative from the Building Industry Association (BrA) to provide
input from an economic development standpoint as it relates to the RCIP and the impacts ofland use policies.
Committee Member Roles & Responsibilities
. CETAP - Stevie Field, Peter Rosen, Joan Sparkman, and Roger Ziemer to follow CETAP issues and attend
meetings.
. IRP - Stevie Field, Diane Sessions, and Paul O'Neal to follow IRP issues and attend meetings.
. RCTC and RTA - Sonia Wilson to follow RCTC and RTA issues.
. Transportation Logistics - Bob Larson and Bill Prouty to follow transportation logistics and product
movement issues.
. French Valley and March Air Cargo Facility - Joan Sparkman, David Phares and Stevie Field to follow
issues and attend meetings.
Committee Meetin2 Dates
The Committee agreed to schedule future meetings on the second Thursday of every month at 8:00 a.m. at the
Workforce Development Center, Temecula. The next scheduled meeting would be held on June 12, 2003.
Adiourn
The meeting adjourned at 9:10 a.In.
Action Items:
1) Diane Sessions to contact Bill Vardou/is to speak to the group about the "Tunnel to Orange County"
project.
2) Sonia Wilson to inquire about employee shuttle service into Southwest Riverside County.
3) Sonia Wilson to obtain RTA bus routes/schedules into Southwest Riverside County from other areas and
to obtain route maps.
4) Bob Larsen to follow up on activities of Distribution Management Association of Southern California -
Inland Empire.
5) Diane Sessions to contact Phil Rizzo, Director of March Joint Powers Authority, for meeting
dates/times.
6) Roger Ziemer to invite Bill Blankenship with the BIA to attend committee meetings.
7) Diane to create committee organizational chart.
8) Diane to create a roster of various Internet sites or reference purposes that are specific to committee
focus.
9) Diane to create committee member roster and distribute.
ECONOMIC DEVELOPMENT CORPORATION
OF SOUTHWEST RIVERSIDE COUNTY
BUSINESS ATTRACTION ADVISORY COMMITTEE
Thursday, May 22, 2003 -10:00 a.m.
Workforce Development Center, Executive Board Room
27447 Enterprise Circle West, Temecula, CA
MINUTES
Committee Members Present:
Marlene Best City of Lake Elsinore
Ken Carlisle Guidant Corporation
Stevie Field SWRC Economic Alliance
Dennis Frank EDC President, VCR - Temecula Extension
Jack McColley Lake Elsinore Chamber of Commerce, Prism Networks
Lane McGhee Arrow Staffing Resources, Inc.
Susan Norton Guidant Corporation
Jim O'Grady City ofTemecula
Paul O'Neal Paul O'Neal & Associates
David Phares DL Phares & Associates, Broker Development
Call to Order
Committee Chair Stevie Field called the meeting to order at 10: 15 a.m. and led introductions.
Committee Pumose
To develop ideas that will lead to the creation of marketing materials that will aid in attracting
businesses to the Southwest Riverside County area.
Alliance Back2round
Stevie Field discussed the Economic Alliance background to give committee members an
ovemew.
. Explained Economic Alliance purpose
. Showed Marketing Materials for the Economic Alliance
. Explained GIS / Internet Site for the Economic Alliance
. Gave examples ofthe different ways the site can be used
. Showed Economic Alliance Fact sheet which shows what the Alliance has done so far
this year and the activity on the website.
. Discussed the number and type of trade shows that are participated in for the Economic
Alliance.
Committee Goals and Obiectives
Stevie Field presented the committee with the following as a starting point for the committee's
goals and objectives.
. Branding Campaign:
o Cutting Edge Marketing is under contract for a year to do marketing materials.
o Cutting Edge Marketing suggested doing a focus group for a branding campaign.
o Cost offocus group should be covered by Cutting Edge Marketing. Lunch may need to
be paid for by the Alliance.
Business Attraction Committee
Minutes - May 22, 2003
Page 2 of2
o Purpose of Focus group will be to label South West Riverside County Region with
something that people will remember & identifY the region with.
o An idea to strengthen ties with San Diego to help show quality of life and workforce is
just as comparable was mentioned.
o The "Real California" was brought up as a possible slogan.
o Advertising as Riverside / San Diego partnership was brought up as a possibility.
. Site Visits
o Stevie Field asked that other members of the committee periodically join her on site
visits.
o Stevie Field will be visiting brokerage firms outside of the area to give a short
Powerpoint presentation and drop off marketing materials.
. Marketing Efforts to attract high-tech companies
o Feedback on marketing materials, such as overall look, content, etc. was requested
o By going to commuter van sites and park & rides, information can be given to employees
so they can pass onto their employers. Employee's that are hesitant about approaching
their employer could give the Alliance the contact persons information so the A11iance
could contact the employer directly.
o Advertising materials that show how much an employee's commute time can be cut by
working in the area could be tried. The employee would then take the message to work.
o Discussed offering satellite offices for companies that want to expand versus moving the
whole facility.
o Possibly work with cities like Carlsbad to have them forward companies to the Alliance
that they do not necessarily have room for.
o Work on the possibility ofa ladies or senior pro-golf tour in Spring 2005.
. Future Meetings
o Discussed possibly meeting every other month or even quarterly.
o Meet right after focus group to make the feedback most beneficial.
o Focus Group is temporarily scheduled on Thursday, July 24th from 8:30 a.m. to 10:00
a.m.
o Next committee meeting will be held in August.
o Other future meetings will be scheduled during the 8:30 a.m. to 10:00 a.m. timeframe.
Adiourn
The meeting adjourned at II :20 a.m.
Action Items:
o Ask others outside of committee to participate in the focus group to give input into the
branding campaign.
o Stevie Field to see about cost of focus group.
o Stevie Field to have San Diego added as one of the keywords for Alliance website.
o PaulO 'Neal will try to help get the Alliance connected with individuals in Carlsbad.
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ECONOMIC
ALLIANCE
TO:
Jim O'Grady
Assistant City Manager
City of Temecula
Bradley J. Hudson
Assistant County Executive Officer
Riverside County EDA
Lori Moss
Assistant City Manager
City of Murrieta
Marlene Best
Assistant City Manager
City of Lake Elsinore
FROM:
Stevie Field
Manager, Business Development
May 12, 2003
SUBJECT: SOUTHWEST RIVERSIDE COUNTY MONTHLY MARKETING UPDATE
DATE:
Dear Partners:
Please consider this an update on the marketing activities for the Alliance as required in the Southwest
Riverside County Marketing for Business Attraction Agreement.
leads
A total of two leads were generated in the month of April. These leads were direct contact to the
Alliance via phone or web site response.
'02-'03 Year in Review
I continue to work on the '02-'03 Year in Review report and binder. The binder will include hard copies
of marketing projects, press releases, awards etc., which the Alliance has accomplished in the past
fiscal year. Completion and distribution is scheduled for June 1st.
Cuttino Edoe Marketino
I am currently working with Cutting Edge on the following projects:
Branding Campaign
Postcard mailings
CD Rom/Demographic Report
Business Resource Guide
Updates on these projects will be provided at our next Alliance meeting.
GIS/Website
Our GIS site continues to attract many visitors. As of May 131h, we have had approx. 2800 visitors.
Our website seems to be equally successful. We have had over 1800 visitors since its official launch
on January 22nd. last month, I reported forty-six sessions were users in the Netherlands, this month
that number has jumped to seventy-eight. Most users enter our site directly using www.swrco.com.
however tt seems that many are also book marking the GIS page and connecting directly to tt, thus not
going through the Alliance web stte. This explains why our GIS visttor session count is higher. The
following is a breakdown of sessions recorded for each month:
Januarv
Februarv
GIS - 350
Web stte - 436
GIS - 460
Web stte - 478
March
ADril
GIS - 760
Web stte - 577
GIS-1116
Web stte - 643
On May 1'1, I was scheduled to attend a conference at ESRI wtth Jim O'Grady and John Degange.
Jim, John and I were scheduled to be guest speakers at a workshop for other economic developers
and various city and county representatives, however ESRI postponed this conference indefinttely due
to an expected low attendance.
At the request of Bonnie Wright, Field Representative for Congresswoman Mary Bono and Chairperson
for the Valley EDC (VEDC) , on June 131h I will be providing a GIS training session to VEDC Board
members.
The EDC of SWRC has asked that I be the guest speaker at the EDC Quarterly luncheon on May 28th.
I will provide a GIS education and training session sim ilar to the recent Regional Breakfast in April.
CoreNet Global
On behalf of the Alliance, I will be submitting an award application to Core Net Global for the category
of Innovations by Communtties/Economic Development Organizations. The focus is on innovative
practices being applied by comm untties and ED organizations to attract and retain corporate jobs and
investment wtthin the context of today's knowledge-based economy. They ask specifically for
examples of how ED organizations are using the web and new technology to promote and market their
organization and region. Winners will be announced and recognized at the Atlanta, Georgia CoreNet
Global Summit in October 2003.
Business Attraction Comm ittee
As a result of the EDC Strategic Planning meetings and the Strengths, Weaknesses, Opportuntties,
and Threats (SWOT), analysis that was conducted, a Business Attraction Committee was formed. This
committee is on a volunteer basis, from business leaders and consultant that would like to be in\lOlved
in activities such as the regional branding campaign, business stte vistts, marketing projects etc.
The first Business Attraction Committee is scheduled for Thursday, May 22nd @ 10:00 a.m. We will
host this meeting at the WDC in Temecula. Currently, we have 17 volunteers for this committee.
ElCDansion Manaoement
The Alliance placed a % page ad in the May issue of Expansion Management Magazine. The focus in
this issue is Biotechnology. Along wtth our % page ad, we submitted an article to promote our GIS
site, Expansion Management picked up the article and is framed and highlighted on the same page as
our ad. This magazine is distributed both nationally and internationally. I will provide copies to each
partner at our regular meeting on May 28'h
DemooraDhic ReDort
I have been working with County staff, Cutting Edge Marketing, and the City of Lake Elsinore, gathering
demographic and real estate information for our updated demographic report. The City of lake
Elsinore is providing us with several demographic reports (each valued at $250.00), and consumer
expenditure reports. The value of these reports and the staff time will be applied to the in-kind
contribution that lake Elsinore commits to the Alliance.
Pasqual Guardado, Demographic Manager for the EDA, is gathering the balance of information
needed for this project. When complete, the updated information will be posted on our web site as well
as the collateral pieces distributed to area brokers, chambers etc.
Trade shows
On behalf of the Alliance, I am scheduled to attend the following trade show(s):
. Bi02003 (Biotechnology)
June 22-25
Washington DC
'03-'04 Marketino PlaniMOU
The '03-'04 Marketing Plan and MOU has been approved and will be provided to each Partner at our
May Alliance meeting. Please let me know at your earliest convenience when the Alliance funding
request is scheduled to go before for your City Council. I will make arrangements to be present at the
Council meeting for questions and support.
On an ongoing basis, I attend the following meetings:
TemeculalMurrieta Group
Business Relations Committee
SWRC EDC
Transportation and Infrastructure Committee
lE EDC
1-15-1 Partnership Meetings
Economic Development meetings concerning the Southwest Riverside County region
UCR Connect meetings
If you need any additional information or have any questions, please contact me at (909) 600-6066.
Sincerely,
Stevie Field
Manager, Business Development
Copy: Belinda Graham
John Viafora
Robert Moran
Teresa Gallavan
6-09-203 5, 1 0PM
FROM
P.2
TEMECULA VALLEY
FilM COUNCIL
--cYI
..
TheWot"'~tM~mltivt
TEMECULA VALLEY FILM COUNCIL
ACTIVITIES REPORT.
MAY2003.
Pat Martinn.
Executive Director
Offkers:
Sunny Poulson Thomas
. Q).Prebiden t
Steve Phelps
Co.Pn:sidcnl
Officers & Members of the Film Council:
I
Pany Slaton
Sccret:uytr'f'esstJf't::r
Pat Martinez, Executive Director; Sunny Thomas, President; Ellen
Watkins,Vice President; Helene Scoma,Secretary/Treasure; Eve
Craig, Maggi Allen, Patty Slaton, Judi Staats & Sean McCarthy
EIIen Watkins
Vice Pn:sidcnt
Mt:mb~
Eve Craig
Maggie Allen
judi St.....
THE BUSINESS OF THE FILM COUNCIL:
. Continued distribution of new, colored Discover Temecula flyer,
i
i.
. Worked with Sheri Davis, the Director ofthe Inland Empire Film
Commission, to bring the FAi\-I Tour into Temecula; targeting
September 2003.
· Implementing a Sponsorship Package for the Student Film
Festival to be held February 2004. Next meeting to be held June
12'h.
i
l
. Continued solicitation of sponsors for the Student Film Festival
has begun; Kodak, Fugi, Guidant being possibilities.
. Gail Simon, The Art Department, has begun gathering new photos
ofTemecula for use in tbe new Discover Temecula computer disc.
Target date, August I".
. At tbe request of local advertisers, the date for finalizing the new
Production Guide has been extended.
. . E-ma.il tvfc@pe.llet. www.temeculafilm,org
.28636 Old Town Fro'nt St.. Sidt.o ..201... ....To.i1reeula:,:CA 93590. Ph... 909.699.6267 . Fax 909.693.2718
6-09-2035011PM
FROM
P.3
Activity Report
Page 2
. After discussions with Jeff Comerchero and Ron Roberts, it was decided
that Board Members of Film Council should put together a 2004 Business
Plan and submit it to the City.
. The Board voted unanimously to research having a carnival in the fall as
a fundraiser for the Council and Student Film Clubs.
FILM COUNCIL INQUIRES:
. Phone calIs received in the month of May were less than previous months,
as Sheri Davis has reported for the entire Inland Empire.
. The Office r~eived several calls from private, local estates expressing
theh- interest in offering their homes for both filming locations and City
events.
II!! IIIIIIIIIIIIIIIIIIIIIIIIII!
The Balloon & Wine Festival has become a time-honored tradition
in the Temecula Valley, providing residents and visitors alike the
opportunity to view the splendor of hot air balloons soaring above
the countryside, sample our fine locally-grown wines, and enjoy top
live entertainment.
The City of Temecula is proud to be a sponsor of this event,
which is made possible through countless hours of volunteer work
contributed by members of the community.
It is my hope that your experience at this year's Festival will be a
memorable one. If you have time, be sure to stop by our wineries,
browse through Old Town, or playa round of golf. Temecula has
a lot to offer and I hope you will visit us often to explore our
marvelous city.
Cordially,
ow~
Jeff Stone
Mayor
,.
'1 Diess In layers:' It is. sometimes very cool in the
morning, but once the.' sun has risen, it warms
up considerably.
2. Bring lots of sunscreen. Temecula's bright sunshine
and reflections can produce painful sunburn. Shade
tents will be available for temporary relief.
3. Bring appropriate eye protection.
4. DON'T SMOKE anywhere near the hot air balloons.
A lit cigarette could ignite a balloon's fuel tank.
5. Watch where you walk and drive. Do not drive and
watch at the same time as balloon chase vehicles make
sudden stops. If you are walking on the fields, please
avoid stepping on balloon canopies and ropes.
6. For the evening glow, bring a flashlight. The
balloons will be tethered and held down with heavy
ropes. Be careful that you don't walk or trip over the
ropes in the dark.
7. Enjoy the glowing balloons from a safe distance.
Children and adults should stay a reasonable distance
away from the balloons. The operators will be very
busy providing a wondrous show for our guests.
Live Healthy, Live
Happy, Live Longs.
~?!l~4J
PAGE 021
;y]ztp qpO~ ;1iXffNli'I/l
.., ,:r~[ula Valley Balloon & WIrE Festival
'11;;:
Temecula is a vibrant
community with an exceptional quality of life.
~l
;~1'
Picturesque Wine Country,
historic Old Town, championship
.
,
,
,
,
, "
,
'----.:::.-
I,
,.mOifiS I '
, - 'I
~'\l\--t_,-
.t \j-" .
golf courses, unlimited shopping,
l::i:,,'" '.
-.
community parks and outdoor
recreation provide a wealth of leisure
activities for residents of all ages and
visitors alike.
Rich with economic
promise, Temecula's
great family environment,
safe neighborhoods,
excellent schools, and abundant business opportunities
make Temecula one of the most desirable places to live,
work and play!
", II.
~~AI:~
Phone: 909-506-5100 Website: www.cityoftemecula.org
43200 Business Park Drive, P.O. Box 9033,Temecula, CA 92589-9033
PIRATES COVE-At Ocean Boulevard and Harbor Chan-
nel. Corona del Mar (714/644-3044). Secluded beach
with harbor views; little to no waves make it perfect for lit-
tle ones. Stairs and trails down from street Free street
parking. Map-F6
SALT CREEK COUNTY BEACH-Off Ritz-Carlton Drive.
Dana Point (714/661-7013). long stretch of beach at
base of Ritz-Carlton Hotel. grassy Bluff Park with basket-
ball. hiking, All amenities. Metered parking, Map - J 16
SAN CLEMENTE CITY BEACH-Dn Avenida del Mar at
Avenida Victoria, San Clemente (714/361-8219). His-
toric 1.200-foot pier dating from 1920's, wide beach and
good surf. All amenities. Metered parking. Map - K 1 7.
ROCKPILE BEACH-At Myrtle Street and Cliff Drive,
laguna Beach (714/661-7013). Rocky surfing beach.
Meteredparking.Map-H15.
SAN CLEMENTE STATE BEACH-On Avenida del
Presidente. San Clemente (714/492-3156), Natural
beach good lor hiking, solitude. All amenities. $6 entrance
fee. Map-K17.
SEAL BEACH-At Main Street and Seal Beach Pier, Seal
Beach (310/430.-2613). Popular surfing beach. Life-
guard, restrooms, showers, Metered parking. Map _ C 1
SHAW'S COVE-At Fairview Street and Clill Drive,
laguna Beach (714/661-7013) Picturesque cove has
tidal pools. diving. Metered parking, Map - H 15
THOUSAND STEPS BEACH-At 9th Avenue and Pacil-
icCoast Highway, South laguna (714/661-70 13). 219
steps lead to small beach at base of cliff. lifeguard
Metered parking. Map-116.
VICTORIA BEACH-Along Victoria Drive off of Pacific
Coast Highway,laguna Beach (714/661-7013). Pretti-
est beach in Laguna. Metered parking. Map - H 1 5.
THE WEDGE-At West Jety View Park. tip of Balboa
Peninsula. end of Channel Road, Newport Beach
(714/644-3044). World-class body surfing, rough
waters. Free parking lot. Map-N16.
WEST STREET BEACH-At West Street and Pacific
Coast Highway. South Laguna (714/661-7013). Small
cove beach with volleyball and good bOdy boarding
waves. Metered parking. Map -116.
SPAS
AIDA GRAY-South Coast Plaza Village, 1631 W. Sun-
flower Ave.. Santa Ana (714) 549-3030. Well-estab-
Iished salon and day spa. located opposite South Coast
Plaza. Map-J13.
AMADEUS SPA--Corona del Mar Plaza. 978 Avocado,
Newport Beach (949) 718-9588- Signature treatments
at contemporary. efficient facility include Echo 2 Pure Oxy-
gen facia! and S1. Malo Seaweed Body Masques. Map- M 15.
AQUATERRA-Surf and Sand Resort. 1555 S. Coast
Hwy" laguna Beach (949) 376-2772. "Nourishing thera-
pies artistically expressed" include Seaweed Revitalizer; Artis-
tic Couples Ritual combines art of massage and color therapy.
Map-115.
BURKE WILLIAMS-The Block at Orange, 20 City
Blvd.. Orange (714) 769-1360; 27741 Crown Valley
Parkway, Mission Viejo (949) 367-9717. Southern Cal-
ifornian day spa/massage center minichain; specialty
treatments include Hunter's Retreat. Maps - J 1 1 and E6.
GEORGETTE KUNGER-South Coast Plaza, 3333 Bris-
tol St.. Costa Mesa (714) 850-1212. Twelve-step Virtu-
al Perfection Facial lives up to its name, striking a virtually
perfect balance between pampering. science. Map - J 13.
NINA MONTEE-120 W. 20th 51.. Santa Ana (714)
918-8888. Distinctive day spa. on short list of favorites,
OCcupies 1903 Craftsman bungalow that opens onto
serene Japanese garden; inside is filled with 18th century
Asian antiques: Map - G 13.
WHERE ORANGE COUNTY
91
YOUR GUIDE
ENTERTAINMENT
A directory to music, theatre, events,
museums, tours and more.
(ABOVE)
ROUER COASTER
AT KNOTTS
BERRY FARM IN
BUENA PARK.
')\Z
TEMECULA BALLOON & WINE FESTIVAL-
June 6-8 at Lake Skinner Recreational Area. East
Benton and Warren Road, Temecula..(909l 676-
6713. Fifty hot air balloons. wine tasting. concerts.
arts and crafts. Fri. $ 7. under 12 free. Sat $17, chil---
dren 7-12 $5, under 6 free. Sun. $15, children
7-12 $5. under 6 free. Two-day pass $25. Map-
southeastofF6.
FLOWER & GARDEN FESnVAL-June 7-8 at
Mission San Juan Capistrano, 31522 Camino Capis-
trano. San Juan Capistrano. (949) 234-1300. Ven-
dors. outdoor furniture. and art. Map -117.
BUTTERFLY CENSUS-June 22 at Riley Wilder-
ness Park. 30952 050 Parkway, Cota de Caza. (949)
923-2265. Help specialists from North American But-
terfly Association to count butterflies along park trails at
annual event. Bring hat and water. Map - E6.
ART*A-FAIR-June 26-Aug, 31 at 777 Laguna
Canyon Road, Laguna Beach, (949) 494-4515. Artists,
124 finalists of a national juried competition, offer oils,
watercolors, pastels. acrylics, drawings, mixed media,
photography, sculpture, jewelry, glassworks, pottery
and furniture for sale. Many take works from conception
to completion as festival-goers watch. WOrkshops and
children's an activities are also offered. Map - G 15.
SAWDUST ART FESTIVAL-June 27-Aug. 31 at
935 Laguna Canyon Road, Laguna Beach. (949) 494-
3030. Unjuried an fest in three-acre eucalyptus grove
offers festive atmosphere, often quirky works by 200
local artists and artisans. The show, in its 37th year, fea-
tures a village-like setting in a lovely eucalyptus grove.
Sawdust-<:overed paths meander emong demonstra-
tion booths, children's an booth;artworkshops, restau-
rants and a saloon. Map - G 15.
INDEPENDENCE DAY PARADE AND CELEBRA-
. TlON-July 4 along Main Street. Huntington Beach,
(714) 374-1535. Sports expo at 6 a.m.; 1 K/5Kjl0K
races; largest parade of its kind west of the Mississippi
at 10a.m.Map-N9.
OLD GLORY CHARACTER BOAT PARADE-
. July 4 beginning at noon in Newpon Harbor, (949)
673-5070. Pancake breakfast other activities at 400
Ma;in St., Balboa, followed by parade of decorated
boats. Map-N9.
,~-
...".
FESTIVAL OF ARTS-July 6-Aug. 31 at 650
Laguna Canyon Road, laguna Beach, (949) 494-
1145. California's longest running outdoor fine art
exhibition marks its 71 st anniversary season. More
than 140 artists and craftspersons selected during
an e)(tensive jury process, and residing in Orange
County's coastal cities, offer original works in media
including painting, sculpture. ceramics, jewelry and
photography. Map - G15.
PAGEANT OF THE MASTERS~July 9-Aug.
29. 8:30 p.m. at Irvine Bowl Park, Festival of Arts,
650 Laguna Canyon Road. Laguna Beach, (949)
494-1145. 'Seasons' provides the theme lor this
years event. considered the finest presentation of
tableaux vivants anywhere. Shows feature live'
orchestra, original score, clever narration. Tableaux
vivants-living pictures-are the result of sophisticat-
ed lighting, background scenery. innovative make--
up: costuming-and 60,000 volunteer hours.
$15-$80. Map - G 15.
ORANGE COUNTY FAIR-July 11-Aug, 3 at
Orange County Fairgrounds, 88 Fair Drive, Costa
Mesa. (714) 708-3247. It's *Red, Ripe, and
Rockin'l" 111th annual event salutes the tomato.
Carnival rides, rodeo, demolition derby. contests.
wir:'e tasting, 4-H contests, free concerts in Grand-
stand Arena. paid concerts in Pacific Amphitheatre
by Bob Dylan, Alanis Morissette, Melissa Ethridge.
Kenny loggins, Crosby, Stills & Nash, the new
Doors (see listings on page 84). Map - K13.
WHERE ORANGE COUNTY
JUNE 2003 .
e
ENHANCING OUR LIFE IN THE VALLEY
SOMETHING'S BREWING
IN SEATTLE
LOCAL TIPS ON
PLAYING TOURIST
WINE COUNTRY
MAKEOVER
I"
~!
~:
I
I
FLOATI NG I N A DREAM
Ballooning over the vineyards in Temecula
~ text Kathy Strong ~
BALLOON RIDES, WINERY TOURS, GREAT PHOTO OPPORTUNITIES - ALL IN ONE DAY
Scientifically, itis really pretty
simple. Hot air ballooning fol-
lows a basic law of physics:
hot air rises. However, as a pas-
senger, the art of ballooning is in
every way romantic. It is the oppor-
tunity to experience the world from
a whole new, almost dream-like
perspective, gliding serenely within
reach of picking grapefruit on the
trees qr high enough to see the
never-ending rows of growing
grapes that grace this east end of
Temecula Valley. It is the latter point
of view that makes marriage pro-
posals one of the mos.t popular
reasons to take a balloon flight.
Hot air ballooning is a natural com-
plement to Temecula's fertile valley.
The experts extol the year-round
weather that makes early-morning
launches nearly idyllic 1/360 days out
of the year." However, more than the
champagne, it is the panorama of sce-
nic beauty that makes balloon-goers
light-headed.
Advice from A Ballooning Expert
Ballooning expert Dan Glick
describes his philosophy as a
"Mercedes view of ballooning -you
should expect a certain level of serv-
ice." Here are some basics for
luminescent balloons make the Temecula Valley Balloon & Wine Festival the
History of Ballooning most photographable event of the year.
Ballooning began in France in the late 1700s. class casino resort), and an east end abundant
In fact, the first balloonists were papermakers in wineries, grapes and gentle rural living. The
who launched unmanned paperbagsfilled with wineries in the area and the top recreational lure,
smoke. The first surviving passengers were a hot air ballooning, together celebrate the 20th
duck, a rooster and a sheep in 1783, giving way Annual Temecula Valley Balloon & Wine Festival.
to a whole new fad which quickly spread from This year the festival is held June 6 - 8 at lake
Europe to America. Skinner, just east of town.
Present-day balloons are made of nylon or Bring your camera and make sure it has a
polyester and flight is fueled by propane burn- flash. This is the most photographable event
ers that produce warmer, lighter air inside the around, as luminescent rainbows of color grace-
balloon than the air around the balloon. fully paint the dawn skies with over 50 balloons
Balloonists, now licensed as commercial pilots launching. In the evening, balloon pilots first
by the FAA, adjust the burners during flight to inflate the balloons, then simultaneously ignite
keep the balloon atthe desired elevation. During the burners to the beat of music. The night
flight the balloon moves with the wind, and, "Glow" is almost as heady as the actual flights,
although the pilot can control height, he/she with festive bursts of color against the velvety
cannot control horizontal movement, requiring black skies.
the pilot to be aware of air curren~ and winds. Festival-goers are treated to ~ine tasting
For those who have a fear of heights, hot air from more than 18 local wineries and to two
ballooning can look challenging. Ga;~ Bradley stages with music, the Wine Garden Stage,
of California Dreamin reassures first-timers that with various performers throughout the event,
it is a serenely quiet experience where often the and the Main Stage, featuring top entertain-
only sounds in this rural countryside are of chick- ers in concert.
ens or cows and with landings that usually Things to keep in mind: Balloon ride reser~
feel more like "afeatherfloatingtotheground." vations must be made bycalling (SOD) 965-2122.
If the weather is not cooperative, the rides
may be cancelled. If you arrive at 10 a.m. and
expect to see balloons launching, you will be
disappointed. They take off around 6 a.m. and
flights last about an hour. However, tethered
rides are given throughout the day at no charge.
novices:
Check the experience of the com-
pany and the pilot. Some reserva-
tion services are brokers, not the actual balloon
company.
Ask for the policies and procedures for can-
cellation. Will the company cancel the flight if
not enough passengers reserve?
Glick advises you not to pre-pay for your flight
unless you are purChasing a gift certificate. He
advises, "Consumer laws say that there should
not be an expiration period on the certificate."
For the best, most comfortable flight ask for
a European-style partitioned ballooning basket.
Glick explains, "The best situation is a separate
compartment for each couple." According to
him, "The open baskets are like getting in a taxi
cab with two doors."
Wear flat walking shoes or tennis shoes and
avoid short skirts (there is a little climb into the
basket). The temperature in the early morning
can be cool, so bring layers or a light jacket.
Photos are taken by most balloon companies,
so Still try to look sportingly attractive (or as best
you can manage at 6 a.m.I)
Do bring binoculars.
Never proceed on a flight if you get the uneasy
feeling that things are too disorganized or
possibly you feel your pilot has been drinking.
Ask about the retrieval end of your flight. You
deserve adequate and comfortable transporta-
tion back to your beginning site. Glick knows of
some companies who "put guests in the back
of a pick-up."
Hot Air Ballooning In Temecula Valley
Just a little over an hour from the desert is
the rapidly expanding valley town ofTemecula,
with an Old Town worth exploring,'major new
shopping and entertainment (including a first-
':I.? n..u.rt MSII'S17in.. I Tnn" ?nn1
Refuse to fly on a marginal weather day. In
the Temecula Valley this usually translates into
high winds or rain.
Since going on a balloon flight in Temecula
involves an early-morning departure, you will
probably want to spend the night. The normal
hotel chains exist, but try something new and
different for a great escape.
Make Ita Weekend Escape
The Inn at Churon Winery is a French-style
chateau inn that sits directly within the vineyards
of east Temecula Valley, with its own winery tast-
ing room downstairs. The 16 luxurious suites
and rooms include such amenities as fireplaces,
Jacuzzi tubs for two, elegant French furnishings,
and private view balconies. A full breakfast is
served in the breakfast room or on your patio.
(33233 Rancho California Road 909- 694-9070.
www.innatchuronwinery.com)
The Pechanga Resort and Casino has 522
beautifully appointed rooms and suites that sit
off to one side of the casino complex.
The resort includes seven restaurants and a
1,200-seat showroom. (45000 Pechanga Parkway
909-693-1819. www.pechanga.com)
Balloon Companies
All of the companies listed below include some
sort of refreshment (either during or after the
flight) and most ask that you allow three,hours
for the whole experience. The flight itself lasts
about an hour. They warn that flights are subject
to cancellation due to weather conditions, but
that is very rare in this balloon-ride-suitable
valley. Flights in the Temecula Valley are always
scheduled for dawn or early morning. Evening
flights are better suited for coastal areas.
Sunrise Balloons
800-548-9912
www.sunriseballoons.com
Owner Dan Glick customizes his 60-80 minute
flights depending on passengers' desires.
Balloons feature easy-step entry, offset-posi-
tioned flight burners for a quieter and more com-
fortable flight, partitioned baskets with 52-inch-
high sides with separate pilot and passenger
compartments for two, narrated flights, and
complimentary photographs for all passengers.
Light snacks and champagne are served during
the flight with each passenger or couple's snacks
in their own snack basket. Balloons are equipped
for the physically challenged.
A Grape Escape Balloan Adventure
800-965-2122 or 909-698-9772
www.ograpeescope.com
Owner Rusty Manning has served as the past
president forthe Annual Balloon & Wine Festival,
having witnessed participation grow in its 20
years from 10 balloons to 50. Grape Escape's
colorful balloon flights begin at Wilson Creek
Winery with watching or participating in the infla-
tion ofthe balloon. The company's four balloons
each carry from two to six passengers. Upon
landing, the ground crew meets your balloon
and you are treated to a picnic-style continental
breakfast.
Califamia Dreamin-A Balloan and
Biplane Adventure
800-373-3359
www.californiadreamin.com
Their partitioned baskets transport six to 14
passengers and they are happy to arrange a
private balloon experience. The flight includes
champagne on board and a continental break-
fast after landing. Balloon-goers meet at
Thornton Winery to begin their adventure.
Custom vans provide transportation to and
from launch and landing sites. .
June 2003 I Desert Magazine 33
APPROV AL
CITY ATTORNEY
DIRECTOR OF FINANCE
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO: City Manager/City Council
FROM: Jim Domenoe, Chief of POlit}1
DATE: June 24, 2003
SUBJECT: Monthly Departmental Report
The following report reflects special teams, traffic enforcement and miscellaneous activity occurring
during May 2003. The Police Department responded to 43 "priority one" calls for service during the
month of May, with an average response time of approximately 5.7 minutes. A total of 4, 136 calls
for police service were generated in the City of Temecula during the month.
During May, the Temecula Police Department's Town Center Storefront served a total of 135
customers. Forty-six sets of fingerprints were taken, 30 people filed police reports and ten people
had citations signed off. Crime Prevention Officer Lynn Fanene participated in a number of special
events, neighborhood watch and community-oriented programs during the month. He also
coordinated requests for patrol ride-alongs. Additionally, he continued to provide residential and
business security surveys/visits and past crime follow-up. Officer Fanene also continued to process
City Planning Department submissions of site plans/conditions.
The POP Teams continued the Warrant Apprehension Program during May, resulting in two felony
warrant arrests. They also issued five citations for various traffic violations. POP Teams also
continued with the homeless persons program, with the goal of assisting homeless in finding
services and aid to help them. Apart Tom the warrant arrests that hal.€ been mentioned, officers
made an additional four felony and eight misdemeanor arrests for various crimes. POP officers also
conducted an extensive criminal stalking investigation that resulted in a search warrant and the
recovery of numerous dangerous weapons. Based on this investigation, a subject was arrested and
has been held in jail with a no-bail status because of the danger he reflects to the community.
The Old Town Storefront serves as an office for the POP teams and a location to assist the public
with police services. During May, the Old Town Storefront served 220 customers. Thirty-six sets of
fingerprints were taken, 16 reports \,\ere written, and 27 citations \,\ere signed off.
The traffic team reported that during the month of May there were 552 citations issued for hazardous
violations, 131 citations were issued for non-hazardous violations and 218 parking citations were
issued. During the month there were 23 injury traffic collisions, 56 non-injury collisions were
reported and 42 drivers were arrested for DUI. The Neighborhood Enforcement Team (NET)
Monthly Departmental Report - Police Department
program resulted in 140 citations being issued. This program addresses traffic concerns in
residential neighborhoods with a dedicated motor officer. The SLAP program (Stop Light Abuse
Program) resulted in 115 citations being issued.
During the month of May, the POP officers assigned to the Promenade Mall handled a total of 101
calls for service. The majority of these calls were for shoplifting investigations. During the month,
calls and on-sight activity resulted in the criminal arrest and filings on three felony and 18
misdemeanor cases. Officers McElvain and Rupe continued to provide training to security staff
during the month. The mall officers continued to work to prevent vehicle theft and vehicle burglaries.
There was only one vehicle theft, and no vehicle burglaries, reported during the month of May.
Our five school resource officers have remained active during May. The school resource officers
conducted many counseling sessions with students. A total of 41 investigations/reports were
conducted/written by the school resource officers during May. The school resource officers also
made arrests for misdemeanor crimes during the month, such as drunk in public. The school
resource officers also made a felony arrest for corporal injury to child.
The JOLT program (Juvenile Offender Law Enforcement Program) continues to be a success in part
through its Youth Court program. Officer Sherry Adams conducted the 112th Youth Court session.
The JOLT officer assisted at other schools when needed and conducted follow-ups with parents of
juveniles in the JOLT program. Officer Adams also worked with "at risk" juveniles throughout the
month and also conducted counseling sessions with their parents. She assisted the Riverside
County District Attorney's Office and Probation Department by providing training during home visits
with incorrigible/at risk juveniles during the month of May.
During the month of May, the Special Enforcement Team (SET Team) made seven felony arrests
and five misdemeanor arrests, primarily for narcotics violations. The SET Team served search
warrants and recovered quantities of marijuana, hashish and illegal steroids during May. This team
continues to work street level narcotics and specialty patrol within the city on a proactive basis.
Volunteers from the community continue to be an integral part of the Temecula Police Department's
staff. Under the guidance of volunteer coordinator Officer Bob Ridley and assistant coordinator
Gayle Gerrish, the Police Department's volunteer staff contributed 553 hours of service in May.
Volunteer assignments include computer data input, logistics support, special event assistance and
telephone answering duties.
Community Action Patrol (CAP) Program volunteers have continued their activities, patrolling the city
for graffiti, conducting vacation residential checks and assisting patrol with special logistical needs
and special events. Other duties these volunteers attend to are business checks and abandoned
vehicles and traffic control. The goal of the program is high visibiiity, which prevents crime from
occurring. CAP Team members contributed 251 hours of service to the community during the
month of May.
The reserve officer program and mounted posse are additional valuable volunteer resources
available to the police department. The police department utilizes reserve officers to assist with
patrol, traffic enforcement, crime prevention and a variety of special functions. Reserve police
officers worked a total of 242 hours specifically on patrol in Temecula during May.
Monthly Departmental Report - Police Department
2
APPROVAL
CITY ATTORNEY
DIRECTOR OF FINANCE
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
William G. Hughes, Director of Public Works/City Engineer
DATE:
June 24, 2003
SUBJECT:
Department of Public Works Monthly Activity Report
RECOMMENDATION: Attached for City Council's review and filing is the Department of
Public Works' Monthly Activity Reports for the month of May, 2003.
MOACTRPT.FRM
CAPITAL IMPROVEMENT PROJECTS
Monthly Activity Report
May I June 2003
Prepared By: Amer Attar
Submitted by: William G. Hughes
Date: June 23, 2003
PROJECTS UNDER CONSTRUCTION
1. First Street Extension - Environmental Mitigation
This project will create approximately 1.49 acres of wetlands along Murrieta Creek at First Street. It
includes construction of landscaping and irrigation improvements, and maintenance of said
improvements for a period of five (5) years in accordance with California Department of Fish and
Game and U.S. Army Corps of Engineers permit requirements. ACOE and RCFC are requesting
the relocation of the mitigation site to avoid conflict with Murrieta Creek Improvement Project. A
letter was sent from the City to ACOE for possible alternate mitigation sites. The City received a
response from ACOE approving the relocation of the mitigation site. Research is underway to
acquire property at an alternate site.
2. Community Theatre. Mercantile Seismic Retrofit
This project will create a community theatre at the old Mercantile building in downtown Temecula.
2H Construction began construction on Monday, September 16, 2002. The project is complete. Final
CCO and staff report is underway.
3. Children's Museum
This project will construct a 7,500 square foot children's museum. The contractor, Fleming
Construction, is completing the punch list for the building shell improvements that include the
construction of the gazebo entrance, improvements to the restrooms and other items to make the
building suitable for the installation of the museum exhibits and use by the public. 2H Construction
is continuing with the repairs to the building structure and a proposal for additional necessary work
will be forwarded to the Board for approval. Due to the extent of structural repairs required, the
completion date for the building shell improvements has been extended to the fall of 2003.
4. Pechanga Parkway (Formerly Pala Road) Sound Wall Improvements
Under this project, sound walls will be designed and constructed on the southwest side of Pechanga
Parkway, from Rainbow Canyon Road to the Pechanga casino and on the northeast side along the
residences just north of Loma Linda. The project was awarded to R.J. Bullard Construction, Inc. at
the Council meeting held on February 25, 2003. Bullard Construction has begun building the sound
wall at the northeasterly limits of the project along the right-of-way of Jedediah Smith Road just north
of Muirfield Drive. The footings have been poured in this area and the block will be placed
thereafter. The contractor has also cleared and grubbed the area on the north west side of the
project between Muirfield Drive and Masters Drive.
R:\Monthly ActivityReport\CIP\2003\April.doc
5. Rancho California Road Bridge Widening Over Murrieta Creek
This project will widen Rancho California Road Bridge over Murrieta Creek 35 feet on the south and
15 feet on the north to provide four additional traffic lanes. Construction is underway with CIDH
pilings at the two abutments nearing completion. Completion of the project is anticipated in Spring
of 2004 although the allowable working days extend into August of 2004.
6. Annual Slurry Seal Project 2002/2003
This is the annual project to slurry seal various areas in the City. The Vail Ranch area is the area of
concentration this fiscal year. Bids were opened on April 15, 2003. The lowest bidder appears to be
American Asphalt South, Inc with a bid amount of $300,297.79. The City Council awarded the
construction contract to Sudhakar Company International on May 13, 2003.
7. Citywide Concrete Repairs - FY2002/2003
Annual maintenance project to repair/replace miscellaneous damaged concrete improvement
including sidewalk, curb & gutter, driveway approaches, etc. City Council awarded a construction
contract to Malton Construction on May 13, 2003. The project will begin when all bonds and
insurance documents are provided to the City.
8. Pavement Rehabilitation Program - FY 2002/ 2003
The project involves removing and replacing the pavement in the two westbound lanes of Rancho
California Road between Margarita Road and Meadows Parkway. This area was identified as
needing rehabilitation in the report "Update of Citywide Pavement Management Program 2002-
2007" prepared by Berryman & Henigar dated December 10, 2002.
Bids were opened on June 10, 2003, with R.J. Noble being the low bidder. Award of this contract
will go to the June 24, 2003, City Council meeting. It is anticipated that construction will begin mid
July of 2003 and be completed by September 2003.
PROJECTS BEING ADVERTISED FOR BIDS
NONE
PROJECTS IN DESIGN
1. Pechanga Parkway (Formerly Pala Road) Improvements - Phase II (SR 79 South to
Pechanga Road)
This project will widen Pechanga Parkway (formerly Pala Road) to its ultimate width from the
Pechanga Parkway Bridge to Pechanga road. The City is currently working with Caltrans' Local
Assistance and City's Environmental Consultant to expedite the environmental approval process.
The Preliminary Environmental Document Classification (NEPA) of the project has been determined
to be an "Environmental Assessment" (EA). Required technical studies (involving Federal action)
will be included in the EA. The Planning Department completed Addendum NO.3 to the Wolf Creek
2
R:\Monthly ActivityReport\CIP\2003\April.doc
EIR and the Notice of Determination for the project. The Addendum and NOD was needed to
satisfy all CEQA requirements for the project. The City will return checkprints to DMJM+HARRIS
when all of the street plans/specifications/utility companies' comments are completed.
This project will be divided into two stages. The first stage is to construct the storm drain triple box
culvert and the channel improvements north of Loma Linda. Construction of this stage is scheduled
for Fall 2003. The second stage will construct the remaining street improvements and drainage
structures. Construction of this stage will start once the first stage is completed.
2. Pechanga Parkway Storm Drain Improvements - Phase II
This project will construct the storm drain triple box culvert and the channel improvements north of
Loma Linda. As part of this stage the entire Pechanga Parkway, Phase II project will be
environmentally cleared in accordance with the California Environmental Quality Act (CEQA). The
Planning Department completed Addendum No. 3 to the Wolf Creek EIR and the Notice of
Determination for the project. The Addendum and NOD was needed to satisfy all CEQA
requirements for the project. The City is finalizing the legal descriptions and plats needed to transfer
Right of Way to RCFC & WCDfor maintenance of the storm drain system. The City is preparing an
overall right of way map, irrevocable offers of dedications with associated legal descriptions and
plats, along with the agreement for RCFC & WCD to review and approval. The Army Corps of
Engineers (ACOE) requested that the City and RCFC & WCD move the energy dissipater upstream
approximately 300 to 400 feet. The consultant will redesign the outlet facility based upon ACOE's
request. When the consultant completes the redesign, plans will be resubmitted to RCFC & WCD
for final check and approval.
3. Temecula Library
A full service library, approximately 34,000 square feet in area, will be designed and built on Pauba
Road, just west of Fire Station #84. This project will provide the community with library resources
and services. A separate parcel has been created for the library for bond purposes. The application
to the State was submitted on 6/13/02. The City's application was not among the approved ones.
The City resubmitted its application for the second round of funding approvals later this year during
the last period. Construction is delayed until Spring 2004, provided that the City receives funding.
Utility services construction will be coordinated with Pauba Road, Phase II Street Improvements.
4. Pauba Road Improvements - Phase II (Margarita Road to Showalter Road)
This project will widen Pauba Road from Showalter to just west of Margarita Road to its ultimate
width. The City has reviewed the 100% Design Plans submitted by the consultant. Specifications
are under review. Plans were sent to all utilities and utility issues are being addressed.
Environmental documents have been finalized by the City Planning Department and the public
comments period will begin next month. Work is being coordinated with the library project.
5. John Warner Road Assessment District - Hydrology Study
Under this project a drainage study will be done to compliment the improvement plans being done
by the property owners. Eventually the City will be the oversight agency for a property owners
sponsored assessment district. The City chose a preferred alternative and directed ERSC to
prepare the final Storm Drain plans and Engineer's Cost Estimate. The City reviewed 60% design
documents and comments were returned to ERSC. Final Design documents were received on June
10. The City is reviewing these documents.
3
R:\Monthly ActivityReport\CIP\2003\April.doc
6. Landscaping and Sidewalk On SR 79 South (Old Town Front Street to Pechanga
Parkway)
The project consists of the design and construction of new sidewalk, landscaping, and irrigation
along State Route 79 South between Pechanga Parkway and Old Town Front Street Review of 1 st
plan submittal is complete. The Civil and Landscaping plans are being finalized and anticipate
receiving final prints by end of June. Technical specs are being finalized. Anticipate construction
during Summer 2003.
7. Temecula Sports Complex
A new 40+ Acres sports complex will be built at the corner of Pechanga Parkway and Deer Hollow
Way. The City Council approved the Conceptual Master Plan of the project and funding at the
January 14, 2003 meeting. RJM, the landscape architect, continues to work on the design of the
complex. The Preliminary Design of the complex is nearly complete, with utility coordination
underway.
8. Bridge Barrier Rail Upgrade, Rainbow Canyon Road over Pechanga Creek/Del Rio Road
over Empire Creek
This project will replace the existing barrier rails of the Rainbow Canyon Bridge over Pechanga
Creek and the Del Rio Road Bridge over Empire Creek. Simon Wong Engineering (SWE) delivered
the 100% Plans and the Engineer's Cost Estimate in early October. The Specifications are
complete. The request for authorization for construction funding was sent to Caltrans on 1/14/03.
Once Caltrans approval is received the project will go out to bid.
9. Fire Station - Wolf Creek Site
A fire station will be built at the Wolf Creek Site. The Plans have been approved with exception of
grading plans. We are waiting for the parcel to be recorded and an APN so an address can be
assigned and utility services finalized. The Developer was noticed of the need in March 2003.
10. Vail Ranch Park (Near Pauba Valley School) - Add Amenities
This project will add amenities, including play equipment, to the recently annexed Vail Ranch Park.
RHA Landscape Architects/Planners Inc. is the design firm. The final design documents were
resubmitted and City staff reviewed them. Comments were returned to the consultant and they are
making the revisions. The revised documents should be received by the end of June.
11. Murrieta Creek Multi Purpose Trail
This project will build portions of the equestrian and bike trails along Murrieta Creek within City
limits. The City has received a federal grant of $1,214,000. Caltrans has given the City the
"Authorization to Proceed with Preliminary Engineering." The contract between the City and Kimley-
Horn and Associates, Inc. was approved by City Council on March 25, 2003. The project kick-off
meeting was held on April 8, 2003. A meeting was held with the ACOE and RCFCD on April 28,
2003, and they are gathering the requested documents. The next update meeting is scheduled for
June 30, 2003.
4
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12. State Route 79 South Medians
Under this project medians will be constructed on State Route 79 South within the City of Temecula
limits. The City Council approved a design agreement with Project Design Consultants on May 27,
2003.
13. Guardrail Installation and Replacement On Rainbow Canyon Road
In this project, old guardrails will be replaced and new guardrails will be installed in needed locations
on Rainbow Canyon Road within the City of Temecula. Authorization to request proposals was
received from Caltrans and the RFP went out on June 11, 2003. Proposals are due on July 1, 2003.
14. Old Town Southern Gateway Landscaping
Under this project, 10,000 square feet remnant parcel west of Front Street, which was created by
the realignment of First Street, will be landscaped. Project plans are back to City for the third plan
check.
15. Rancho California Road Widening, Old Town Front Street to 1-15 (Southside)
This project will provide a right turn lane for southbound 1-15 motorists and explore the possibility of
providing a dual left turn lane from westbound Rancho California Road to southbound Front Street.
Proposals for design of the improvements were received on June 5, 2003. Title reports for
impacted properties have been ordered.
16. Old Town Community Theatre
This project will construct a 20,000 square foot community theater complex and refurbishes the
existing Mercantile Building. Plans are through building plan check. RFP's for construction
management and pre-qualification of the contractors for the project have been received and are
being reviewed. We are in the process of acquiring Fourth Street right-of-way for utilities and
access. Permit applications were completed and sent to resource agencies the week of May 12th.
Permitting may delay construction.
17. Diaz Road Realignment
Under this project, Diaz Road will be realigned to Vincent Moraga Road at Rancho California Road.
Business Park Drive will be a T-intersection at Diaz. City staff is currently designing the project.
Street and landscaping design completion is scheduled for April 2003. Widening Diaz Road an
additional 20 feet to accommodate four lanes of traffic has been added to the project and is currently
under design. In addition, a signal at Rancho Way and Diaz has been added to this project and is
being designed in house. The project is on hold, except for the two traffic signals at Diaz Rd. &
Rancho Way and Business Park & Rancho California Road. Right of Way processing is anticipated
to be completed soon. Association CC&R restrictions applicable to the proposed roadway are
currently being appraised for valuation.
18. Rancho California Road Median Modifications at Town Center
The project will include the closing of the two median openings on Rancho California Road in front
of the Town Center, while lengthening the left turn lanes at Ynez Road, Town Center Drive, and Via
Los Colinas to improve traffic circulation. The design is 100% complete. This project is being
combined with PWOO-20, which includes a right turn lane eastbound on Rancho California Road at
Ynez Road. Right-of-way acquisition for the turn lane has been completed. The design is complete
5
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and is under final review. The project will be advertised for construction bids during the next period.
19. Rancho California Road Widening at Ynez Road (Add right turn lane to westbound lanes)
This project will add a right turn lane on westbound Rancho California Road at Ynez Road. Right of
way acquisition at the northeast corner of Rancho California and Ynez is complete. The design is
complete and is under final review. The project will be advertised for construction bids during the
next period. This project will be combined with PWOO-02.
20. Winchester Road Widening Between Enterprise Circle and Jefferson
This project will widen Winchester road between Enterprise Circle and Jefferson Avenue. It will also
add a right turn lane from Eastbound Winchester to Southbound Jefferson, starting at Enterprise
Circle. Project layout was plotted and discussed with Traffic and the Director of Public Works n-
house design continues. Right-of-way plats and legals have been prepared and the acquisition
process is underway.
21. Rancho California Sports Park ADA Access and Shade Structure
This project entails the design and construction of ADA compliant concrete walkways to the
remaining ball fields, 3,4,5,7 & 8. It will also include the installation of two shade picnic/seating areas
adjacent to the snack bar building. Bidding is in process. The contract was awarded to International
Pavement Solutions, San Bernardino. The contract amount is $36,363.00. The pre-construction
meeting will be held June 24, 2003. Due to park maintenance activities, construction is to occur
between July 5 and Aug 17, 2003.
22. Bus Bench Upgrades
Under this project, bus benches and shade structures will be installed and existing ones will be
upgraded at various locations. Project research on locations of current bus stops, existing bus
bench/shade structures, bus bench/shade structure costs and RT A routes is complete. Bus
bench/shade structure design and location options were reviewed and a report with
recommendations is being prepared.
23. Jefferson Avenue Pavement Rehabilitation - Phase II
This project will rehabilitate Jefferson Avenue from south of Overland Drive to Rancho California
Road. The rehabilitation will include pavement overlay, and road and driveway reconstruction. A
surveying firm was hired. They performed the required surveying and provided the data to the City.
Staff is in the process of hiring a geotechnical firm to provide pavement testing. Once the test results
are provided, staff will begin the design.
PROJECTS IN THE PLANNING STAGE
1. 1-15/ SR 79 South Interchange - Project Study Report (PSR)
This project will modify the 1-15/ SR 79 South Interchange to accommodate projected future traffic.
The City will proceed with the modified alternative #5. The draft Project Study Report was submitted
to Caltrans and the City for review and comments on April 7, 2003. The consultant will finalize the
6
R:\Monthly ActivityReport\CIP\2003\April.doc
documents once all the comments are received and addressed. The City received Caltrans
comments on May 22, 2003. The City's responses to the comments were sent back to Caltrans on
June 3, 2003.
2. French Valley Parkway Overcrossing and Interchange, Project Report (PR), Plans
Specifications, and Estimate (PS&E) Preparation
This project will construct an interchange between Winchester Road Interchange and the 1-15/1-215
split. The consultant continues to work on the Project Report. A PDT meeting was held on 04/30/03.
The consultant continues to work on the Project Report. A PDT meeting was held on 04/30/03. In
addition, an agreement with a facilitator for the Value Analysis process will be presented to the City
Council for approval on June 24, 2003. We are also pursuing the acquisition of a number of
properties to protect them from development.
3. Fire Station - Northeast Site (Roripaugh Ranch)
This project will construct a new fire station in the north part of the City. Amendment of the design
agreement, for final design, was approved at the 6-10-03 Council meeting. The developer has
deposited the additional funding necessary to complete final design and bid the project.
4. Murrieta Creek Bridge - Overland Drive Extension to Diaz Road
This project will entail alignment studies and the design of an extension of Overland Drive, westerly
to Diaz Road, which includes a new bridge over Murrieta Creek. The project includes the widening
of Overland Drive from Jefferson Avenue to Commerce Center Drive, and the extension of Overland
Drive across Murrieta Creek to Diaz Road. PDC has completed the alignment study and staff has
reviewed copies of the preliminary plans. Staff has reviewed design costs for next year's fiscal
funding. No funding until FY04-05.
5. Alignment Study for Murrieta Creek Bridge Between Winchester Road and Temecula City
Limits and Diaz Road Extension
This study will determine the alignment and location of the Murrieta Creek crossing between
Winchester Road and the northern City Limits. In addition, the study will be combined with the Diaz
Road Extension alignment study and design. Coordination with the City of Murrieta, Riverside
County Flood Control and Army Corps of Engineers is necessary. The Consultant and Staff met
with Riverside County Flood Control to discuss possible alignments. The consultant is currently
awaiting data from Riverside County Flood Control in order to complete the work on the first draft of
the alignment study. Staff was informed this data could take up to a year to receive (from May
2002).
PROJECTS THAT ARE SUSPENDED OR ON-HOLD
1. Santa Gertrudis Bridge Widening at 1-15
This is Phase II of the Southbound Auxiliary Lane project at the southbound exit ramp for
Winchester Road. This project will widen the 1-15 southbound exit-ramp at the Santa Gertrudis
Creek Bridge to provide an additional lane on the exit ramp just north of Winchester Road. Staff is
revisiting the merits of this project in light of the Project Study Report for French Valley Parkway
7
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Interchange. The study shows that this bridge may have to be removed in the future to
accommodate the new Interchange. This project is suspended indefinitely.
2. Margarita Road/ Winchester Road Intersection Improvements
Project is on hold. Under this project, an additional left turn from eastbound Winchester to
northbound Margarita will be added in order to accommodate increasing traffic volumes. Design is
50% complete. A developer will be doing this project.
3. Pujol Street Sidewalk Improvements - Phase II
Project is on hold. This project will complete the knuckle at the intersection of Sixth Street and
Felix Valdez. The developer of a nearby property may be designing and constructing this project.
4. School Site ADA Improvements
Project has been removed from this year's CIP. Design and construct ADA concrete walkways
and hand railing to athletic facilities at Temecula Middle School, James L. Day Middle School and
Margarita Middle School. TCSD re-allocated the funds.
5. City Hall Parking Lot Modifications
Project is on-hold. Funding has been postponed until FY 2004/2005. Under this project, a
security fence will be installed between the existing maintenance facility and the western side of City
Hall to secure the parking lot west of the main building. The design of a security fence between the
existing maintenance facility and the western side of City Hall will be performed in-house. A scoping
meeting was held on November 12, 2001. Research on existing base maps for the proposed area
and as-builts for the existing security fence near the maintenance facility is complete. Design and
review of the proposed layout is complete. The project is currently on hold waiting for further
direction.
8
R:\MonthlyActivityReport\CIP\2003\April.doc
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MEMORANDUM
TO: Bill Hughes, Director of Public Works/City Engineer
FROM: 6Jq? Brad Buron, Maintenance Superintendent
DATE: June 3, 2003
SUBJECT: Monthly Activity Report - May, 2003
The following activities were performed by Public Works Department, Street Maintenance Division in-house
personnel for the month of May, 2003:
I.
SIGNS
A.
B.
C.
Total signs replaced
Total signs installed
Total signs repaired
70
35
66
II.
TREES
A.
Total trees trimmed for sight distance and street sweeping concerns
11
III. ASPHALT REPAIRS
A. Total square feet of A. C. repairs
B. Total Tons
1.894
54
IV.
CATCH BASINS
A. Total catch basins cleaned
143
V. RIGHT-OF-WAY WEED ABATEMENT
A. Total square footage for right-of-way abatement
-0-
VI. GRAFFITI REMOVAL
A. Total locations
B. Total S.F.
25
2,825
VII. STENCILING
A. 198 New and repainted legends
B. 2,772 L.F. of new and repainted red curb and striping
R:\MAINTAtN\MOACTRPT\JIJI Y ?OO?_ .IlINF ?on"lI/vlAV m nnr:
Also, City Maintenance staff responded to ..12.. service order requests ranging from weed abatement, tree
trimming, sign repair, A.C. failures, litter removal, and catch basin cleanings. This is compared to 55
service order requests for the month of Aoril. 2003.
The Maintenance Crew has also put in 90 hours of overtime which includes standby time, special events
and response to street emergencies.
The total cost for Street Maintenance performed by Contractors for the month of Mav. 2003 was $39.225.00
compared to $76.794.64 for the month of Aoril. 2003.
Account No. 5402
Account No. 5401
Account No. 999-5402
$ 13,020.00
$ 24,735.00
$ 1,470.00
cc: Ron Parks, Deputy Director of Public Works
Ali Moghadam, Senior Engineer (CIPlTraffic)
Amer Attar, Principal Engineer (Capital Improvements)
Jerry Alegria, Senior Engineer (Land Development)
R:\MAINTAIN\MOACTRPruUL Y 2002. JUNE 2003\MAY.03.DQC
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STREET MAINTENANCE CONTRACTORS
The following contractors have performed the following projects for the month of May, 2003
DATE DESCRIPTION TOTAL COST
ACCOUNT STREET/CHANNEUBRIDGE OF WORK SIZE
CONTRACTOR: RENE'S COMMERCIAL MANAGEMENT
Date: 05/03 MISCELLANEOUS WEED ABATEMENT &
CITYWIDE TRASH PICK-UP ALONG R.OW.
# 5402 TOTAL COST $ 5,000.00
CONTRACTOR: BECKER ENGINEERING
Date: 05/03 SAW CUT ASPHALT STREETS FOR PUBLIC
CITYWIDE WORKS MAINTENANCE CREW
# 5402 TOTAL COST $ 4,680.00
Date: OS/21/03 CONSTRUCT WHEELCHAIR RAMP AT
VAIL RANCH PARKWAY CROSSWALK
# 5402
TOTAL COST $ 3,340.00
Date: 05/08/03 BACKFILL, COMPACT NORTH SIDE OF
MUIRFIELD CHANNEL CONCRETE CHANNEL
# 5401
TOTAL COST $ 3,235.00
CONTRACTOR: MONTELEONE CONTRACTORS
Date: 05/06/03 PAUBA ROAD CHANNEL REMOVAL OF SILT AND DEBRIS FROM
SANTIAGO CHANNEL CHANNELS
#5401 JOHN WARNER CHANNEL
VIA LOBO CHANNEL
EMPIRE CREEK CHANNEL TOTAL COST $ 21,500.00
Date: 05/06/03
SERVICE LEVEL "R" AREAS GRADE ALL DIRT ROADS
# 99-5402 TOTAL COST $ 1,470.00
TOTAL COST ACCOUNT #5401 $ 24,735.00
TOTAL COST ACCOUNT #5402 $ 13,020.00
TOTAL COST ACCOUNT #99-5402 $ 1,470.00
R:\MAINTA1N\MOACTRPT\.JUL Y 2002- JUNE 2003\MAY.03.DOC
CITY OF TEMECULA
DEPARTMENT OF PUBLIC WORKS
ROADS DIVISION
SIGNS
MONTH OF MAY, 2003
DATE LOCA TION WORK COMPLETED
05/01/03 PUJOL AT 1ST STREET REPLACED R-I
05/0 1/03 RANCHO CALIFORNIA ROAD AT MARGARITA REPLACED 6 DELINEATORS
05/05/03 LA SERENA AT CALLE MEDUSA REPLACED G-9
05/05/03 BUTTERFIELD STAGE AT WOLF STORE REPLACED 5 DELINEATORS
05/06/03 MARGARITA ROAD REPLACED CITY LIMIT SIGN
05/06/03 OVERLAND AT YNEZ REPLACED R-18-2
05/06/03 PALOMA PARK REPLACED R-2
05/06/03 PARADUCCI LANE AT MEADOWS INST ALLED R-7, K MARKER
05/06/03 NICHOLAS ROAD INSTALLED 1 CARSONITE
05/06/03 CITYWIDE REPAIRED 13 SIGNS
05/07/03 LA SERENA AT MEADOWS REPLACED II DELINEATORS
05/07/03 CITYWIDE REPAIRED 8 SIGNS
05/08/03 CITYWIDE REPAIRED 5 SIGNS
05/08/03 MARGARITA AT OVERLAND REPLACED R-7
05/[2/03 MAIN STREET AT FRONT STREET REPLACED R-I
05/12/03 2ND STREET AT FRONT STREET REPLACED R-l
05/14/03 YNEZ AT OVERLAND REPLACED R-I8 - 2, R-81 & W-53
05/[5/03 YUKON AT RANCHO CALIFORNIA ROAD REPLACED R-26, R81, R81
05/[9/03 MARGARITA AT PAUBA REPLACED W-41
05/19/03 BUTTERFIELD STAGE AT NIGHTHAWK REPLACED 2 W-I7
OS/21103 BUTTERFIELD STAGE N/O BRIDGE REPLACED 2 W-17
OS/27/03 MIRA LOMA AT YNEZ REPLACED R2 - "45"
R:\MAINT AIN\WKCMPL TD\SIGNSI02.0J\MA Y.OJ
DATE LOCATION WORK COMPLETED
OS/27/03 CITYWIDE REPAIRED 11 SIGNS
OS/28/03 MARGARITA AT A VENIDA BARCA & LA SERENA INSTALLED 31 R.P.Ms
OS/28/03 BUTTERFIELD AT CROWN HILL INSTALLED R2 - 55
OS/28/03 A VENIDA ALVARADO AT TIERRA ALTA REPLACED R-I
OS/28/03 PAUBA AT STATION #84 REPLACED 3 DELINEATORS
OS/28/03 PAUBA AT MARGARITA REPLACED R2-45
OS/28/03 RANCHO VISTA W /0 VIA EL GERICO REPLACED R2-45
OS/28/03 CITYWIDE REPAIRED 12 SIGNS
OS/29/03 DUCK POND REPLACED 3 RED "N" MARKERS
OS/29/03 CITYWIDE REPAIRED 7 SIGNS
05/30/03 RANCHO CALIF. ROAD AT OLD TOWN FRONT REPLACED I7 DELINEATORS
05/30/03 BUTTERFIELD SIO HWY 79 SO. REPLACED 2 DELINEATORS
05/30103 CITYWIDE REPAIRED 10 SIGNS
TOTAL SIGNS REPLACED 70
TOTAL SIGNS INSTALLED ~
TOTAL SIGNS REPAIRED 66
R:\MAINT AIN\WKCMPL TDlSIGNS\02.03\MA Y.03
CITY OF TEMECULA
DEPARTMENT OF PUBLIC WORKS
ROADS DIVISION
GRAFFITI REMOVAL
"
DATE LOCA TION WORK COMPLETED
05/0 I/03 VAIL RANCH PARKWAY AT CAMINO RUBANO REMOVED 8 S.F. OF GRAFFITI
05/0 I/03 WILLOWS AT NORTH GENERAL KEARNEY REMOVED 36 S.F. OF GRAFFITI
05/05/03 MARGARITA PARK REMOVED 215 S.F. OF GRAFFITI
05/13/03 WINCHESTER AT MARGARITA REMOVED 405 S.F. OF GRAFFITI
05/13/03 I-IS AT OVERLAND BRIDGE REMOVED 110 S.F. OF GRAFFITI
05/14/03 28566 PUJOL REMOVED 160 S.F. OF GRAFFITI
05/14/03 WILLOW STREET REMOVED 60 S.F. OF GRAFFITI
05/15/03 27338 JEFFERSON REMOVED 60 S.F. OF GRAFFITI
05/15/03 27419 YNEZ REMOVED 205 S.F. OF GRAFFITI
05/15/03 I-IS FWY AT RANCHO CALiFORNIA ROAD REMOVED 40 S.F. OF GRAFFITI
05/15/03 I-IS FWY AT TOWER PLAZA REMOVED 40 S.F. OF GRAFFITI
05/19/03 HWY 79 SO. AT 1-15 FWY REMOVED 50 S.F. OF GRAFFITI
05/19/03 28566 PUJOL REMOVED 104 S.F. OF GRAFFITI
05/19/03 28550 PUJOL REMOVED 148 S.F. OF GRAFFITI
OS/20/03 HWY 79 SO. AT 1-15 FWY REMOVED 10 S.F. OF GRAFFITI
OS/20/03 TEMEKU AT INVERNESS REMOVED 15 S.F. OF GRAFFITI
OS/22/03 MARGARITA AT SANTA GERTRUDIS REMOVED 70 S.F. OF GRAFFITI
OS/23/03 NICHOLAS AT JOSEPH REMOVED 12 S.F. OF GRAFFITI
05123/03 MARGARITA AT GEORGETOWN REMOVED 6 S.F. OF GRAFFITI
OS/23/03 VIA MONTEZUMA AT DEL RIO REMOVED 2 S.F. OF GRAFFITI
OS/27/03 29000 PUJOL REMOVED 150 S.F. OF GRAFFITI
OS/27/03 28464 FELIX VALDEZ REMOVED 206 S.F. OF GRAFFITI
OS/27/03 MARGARITA BRIDGE AT SANTA GERTRUDIS REMOVED 45 S.F. OF GRAFFITI
OS/27/03 6TH STREET AT MURRIETA CREEK REMOVED 592 S.F. OF GRAFFITI
OS/28/03 I-IS FWY AT GOLDS GYM REMOVED 76 S.F. OF GRAFFITI
REMOVED S.F. OF GRAFFITI
TOTAL S.F. GRAFFITI REMOVED 2.825
TOTAL LOCATIONS 25
MONTH OF MAY, 2003
R:\MAINTAIN\WKCMPLTDlGRAFFITl\JULY 2002. JUNE 2003\MAY,03.DOCMA Y,O)
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CITY OF TEMECULA
DEPARTMENT OF PUBLIC WORKS
ROADS DIVISION
STENCILS / STRIPING
MONTH OF MAY, 2003
DATE LOCATION WORK COMPLETED
05/01/03 AREAS #4 & 5 REPAINTED 2.572 L.F. RED CURB
05/05/03 AREA #4 REPAINTED 56 LEGENDS
05/06/03 AREA #4 REPAINTED 38 LEGENDS
05/08/03 AREA #4 REPAINTED 13 LEGENDS
05/12/03 AREA #4 REPAINTED 45 LEGENDS
OS/22/03 RANCHO VISTA AT SPORTS PARK INSTALLED 200 L.F. RED CURB
OS/28/03 AREA #3 REPAINTED 14 LEGENDS
OS/29/03 AREA #3 REPAINTED 32 lEGENDS
TOTAL NEW & REPAINTED LEGENDS ---.!2l!
NEW & REPAINTED RED CURB & STRIPING L.F. 2.772
R:\MAINT AIN\WKCMPL TD\sTRIPINGVUL Y 2002 TO JUNE 200J\MA Y.GJ.DOC
CITY OF TEMECULA
DEPARTMENT OF PUBLIC WORKS
ROADS DIVISION
ASPHALT (POTHOLES) REPAIRS
MONTH OF MAY, 2003
DATE LOCATION SCOPE OF WORK S.F. TOTAL
TONS
05/01/03 31605 CALLE G1RASOL R&R AC BERM 52 L.F. 1.5
05/05/03 SANTIAGO R&R AC BERM 80 L.F. 3.5
05/06/03 FRONT STREET AT SANTIAGO R&R AC BERM 145 6.5
05/08/03 PECHANGA PARKWAY R&R AC BERM 240 6.5
05112/03 DE PORTOLA ROAD R&R A.C. BERM 70 3
05113/03 FRONT STREET AT SANTIAGO R&R A.C. 137 6
05/14/03 MARGARITA AT A VENIDA BARCA R&R A.C. 180 5
05115/03 DEL REY AT VIA NORTE A.C. OVERLAY 264 2
OS/21/03 41775 YORBA R&R A.C. 152 5
OS/27/03 MARGARITA S/O A VENIDA BARCA R&R A.C. 216 6
OS/28/03 30241 CABRILLO R&R A.C. 263 6.5
OS/29/03 31535 AVENIDA DEL REPOSO R&R A.C. 95 2.5
TOTAL S.F. OF REPAIRS 1.894
TOTAL TONS 54
R:\MAINT AIN\WKCMPL TD\ASPHALT.RPR\02.03\MA Y.03
CITY OF TEMECULA
DEPARTMENT OF PUBLIC WORKS
ROADS DIVISION
RIGHT -OF - WAY TREE TRIMMING
MONTH OF MAY, 2003
DATE LOCATION WORK COMPLETED
05/06/03 OVERLAND AT YNEZ TRIMMED 4 R.O.W. TREES
OS/28/03 WINCHESTER AT D1AZ TRIMMED 4 R.O.W. TREES
OS/29/03 MARGARITA AT VIA LA VIDA TRIMMED 3 R.O.W. TREES
TOTAL R.O.W. TREES TRIMMED --1!
R:\MAINTAIN\WKCMPL TD\TREES\JUL Y 2002 TO JUNE 2003\MA Y.03.DOC
CITY OF TEMECULA
DEPARTMENT OF PUBLIC WORKS
ROADS DIVISION
CATCH BASIN MAINTENANCE
MONTH OF MAY, 2003
DATE LOCATION WORK COMPLETED
05/0 1/03 AREA #3 CLEANED & CHECKED 13 CATCH BASINS
05/05/03 AREA #3 CLEANED & CHECKED 8 CATCH BAS[NS
05/06/03 AREA #3 CLEANED & CHECKED IS CATCH BASINS
05/07/03 AREA #3 CLEANED & CHECKED 12 CATCH BASINS
05/08/03 AREA #3 CLEANED & CHECKED 12 CATCH BASINS
05/[3/03 JON PLACE AT SEARPHINA CLEANED & CHECKED [ CATCH BAS[NS
05/14/03 AREA #3 CLEANED & CHECKED 7 CATCH BASINS
05/1 5/03 AREA #3 CLEANED & CHECKED 6 CATCH BAS[NS
05/19/03 CITYWIDE CLEANED & CHECKED 9 CATCH BASINS
OS/20/03 AREA #3 CLEANED & CHECKED 3 CATCH BASINS
OS/21/03 AREA #3 CLEANED & CHECKED 5 CATCH BAS[NS
OS/22/03 AREA #1 CLEANED & CHECKED 3 CATCH BASINS
OS/23/03 C[TYWIDE CLEANED & CHECKED 8 CATCH BASINS
OS/27/03 AREA #3 CLEANED & CHECKED 31 CATCH BASINS
OS/28/03 AREA #3 CLEANED & CHECKED 3 CATCH BASINS
OS/29/03 AREA #3 CLEANED & CHECKED 2 CATCH BASINS
TOTAL CATCH BASINS CLEANED & CHECKED ---.ill
R:\MAINT AIN\WKCMPLETD\CATCHBAS\02.03WA Y.03
CITY OF TEMECULA
DEPARTMENT OF PUBLIC WORKS
ROADS DIVISION
DATE LOCA TION REQUEST DATE WORK
RECEIVED COMPLETED
05/01/03 41770 MARGARITA RESTRIPING QUESTION 05/01/03
05101/03 42096 RUBICON CIRCLE TREE TRIMMING 05/01/03
05/01/03 30942 CORTE DE LAS SANTOS DEAD TREE 05/01/03
05/01/03 27452 JEFFERSON TREE TRIMMING 05/01/03
05/01103 LA PAZ AT HWY 79 SO. DEBRIS PICK-UP 05/01/03
05101103 CAllE PI NA COLADA STORM DRAIN CLEANING 05/01/03
05102/03 41065 1ST STREET STORM DRAIN REPAIR 05/02/03
05/08/03 30066 MIRA lOMA DRIVE POTHOLE 05/08/03
05109/03 44733 CAllE BANUELOS ELECTRICAL BOX OPEN 05/09/03
05/12/03 27625 COMMERCE CENTER DRIVE STANDING WATER 05/12/03
05/12/03 41680 ENTERPRISE CIRCLE SOUTH STORM DRAIN MAINTENANCE 05/12/03
05/13/03 41766 BARGll COURT STREET RESURFACING 05/13103
05/14/03 30214 VillA Al TURAS DISEASED TREES 05/14/03
05/14/03 41915 4TH STREET TREE REMOVAL 05/14/03
05/15103 28289 CORTE OCASO Oil SPill 05/15/03
05/16/03 29920 lONG VAil COURT Oil SPill 05/16/03
05/16/03 29875 lONG VAil COURT Oil SPill 05/16103
05/19/03 32194 VIA BANDE ROOT PRUNING 05/19/03
05/19/03 45955 TIERRA RICA TRENCH FAILURE 05/19/03
OS/20/03 31570 LAKE RIDGE COURT STREET REPAIR OS/20:03
OS/21/03 42895 SANTA SUZANNE PLACE TREE DOWN OS/21/03
OS/21/03 1ST STREET AT PUJOL BROKEN STREET LIGHT OS/21103
OS/23/03 29321 VIA NORTE POTHOLE OS/23/03
OS/27/03 31300 CORTE ALHAMBRA DEBRIS PICK-UP OS/27/03
OS/29/03 29826 VIA PUESTA DEL SOL WATER lEAK OS/29/03
OS/29/03 39120 PALA VISTA DRIVE ROAD GRADING OS/29/03
TOTAL SERVICE ORDER REQUESTS ~
SERVICE ORDER REQUEST LOG
MONTH OF MAY, 2003
R:\MAINTAIN\WKCMPLTD\SORSVULY 2002 ~ JUNE 2003\MAY.OJ.DOC