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HomeMy WebLinkAbout032602 CC Agenda In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (909) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title II] AGENDA TEMECULA CITY COUNCIL A REGULAR MEETING' CITY COUNCIL CHAMBERS 43200 BUSINESS PARK DRIVE MARCH 26, 2002 - 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 11:00 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 11:00 P.M. 5:30 P.M. - Closed Session of the City Council/Redevelopment Agency pursuant to Government Code Sections: 1. Conference with City Attorney and ~egal counsel pursuant to Government Code Section 54957.6 with respect to labor negotiations. The negotiating parties are the City of Temecula and California Teamsters Local 911. City negotiators are Shawn Nelson, Jim O'Grady, and Grant Yates, 2. Conference with City Attorney and legal counsel pursuant to Government Code Section 54956.8 regarding real property acquisition negotiations of property located 27035 Rainbow Creek Drive. Under negotiation is the price and terms of the real property interests. The negotiating parties are the City of Temecula and Mary Keating. City negotiators are Shawn Nelson, Jim O'Grady, and John Meyer. 3. Conference with City Attorney and legal counsel pursuant to Government Code Section 54956.9(a) with respect to one matter of existing litigation involving the City. The following case will be discussed: 1) City of Temecula v. County of Riverside (Dutch Village). 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. 2002-02 Resolution: No. 2002-24 CALL TO ORDER: Mayor Ron Roberts Prelude Music: Hayley Lieberg Invocation: Pastor Matt Hsieh of Rancho Baptist Church Flag Salute: Boy Scout Troop No. 148 ROLL CALL: Comerchero, Naggar, Pratt, Stone, Roberts R:~Agenda\032602 1 PRESENTATIONS/PROCLAMATIONS Special Recoqnition to Mr. and Mrs. Rhodes Earthquake Preparedness Proclamation State recoqnition to Buildinq and Safety Director Elmo 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 prior 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 Adoption Procedure RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Approval of Minutes RECOMMENDATION: 2.1 Approve the minutes of January 29, 2002 (RCIP Workshop); 2.2 Approve the minutes of February 12, 2002. R:~Agenda\032602 2 3 Resolution Approvinq List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 Approval of Demands and Issuance of Checks ~nd Warrants by the City Manaqer RECOMMENDATION: 4.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 02- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING SECTIONS 3.14.100 AND 3.14.120 OF THE TEMECULA MUNICIPAL CODE AND REPEALING SECTIONS 3.24.130, 3.24.140, AND 3.24.150 OF THE TEMECULA MUNICIPAL CODE, ALL RELATING TO THE APPROVAL OF DEMANDS AND ISSUANCE OF CHECKS AND WARRANTS BY THE CITY MANAGER PURSUANT TO GOVERNMENT CODE SECTIONS 37208 AND 53911 4.2 Adopt a resolution entitled: RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DESIGNATING CITY OFFICERS REQUIRED TO SIGN CHECKS AND WARRANTS ON BEHALF OF THE CITY AND REPEALING RESOLUTION NO. 96-76 5 Information Technoloqy Consultin.q Services RECOMMENDATION: 5.1 Approve a contract in an amount not to exceed $30,000.00 to Tech/Knowledge, Inc. to provide Information Systems consulting services; 5.2 Appropriate $20,000.00 from the Information Systems unappropriated fund balance. R:~Agenda\032602 3 6 Award of Contract to Canon Financial Services, Inc. (CFS) and Temecula Copiers RECOMMENDATION: 6.1 Award a three-year contract to Canon Financial Services, Inc. (CFS) in the amount of $236,981.24 (as per the original RFP plus the addition of one copier, the upgrading of two copiers, and sales tax in accordance with the RFP) for the capital lease of the equipment and authorize the Mayor to execute the contract; 6.2 Award a three-year contract to Temecula Copiers in the amount of $115,290.00 (as per the original RFP plus the maintenance, service, and performance for the one added copier) for the maintenance, service, and performance of the equipment and authorize the Mayor to execute the contract. 7 Purchase of Police Motorcycles RECOMMENDATION: 7.1 Approve the purchase of two police motorcycles from Quaid Harley Davidson for a total amount of $38,307.24. 8 Opposition of Assembly Bill 680 (Steinberq) - Smart Growth Act of 2002 RECOMMENDATION: 8.1 Adopt a resolution entitled: RESOLUTION NO, 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA OPPOSING ASSEMBLY BILL 680 (STEINBERG) WHICH PROPOSES THE ALLOCATION OF SALES TAX BE BASED ON SITUS, POPULATION, AND SMART GROWTH PRINCIPLES 9 Tract Map No. 26521 (located south of Rancho Vista Road, north of Green Tree Road, and west of Via Sierra~. RECOMMENDATION: 9.1 Ratify the approval of Subdivision Improvement Agreement for Tract Map No. 26521; 9.2 Authorize the City Manager to sign the Subdivision Improvement Agreement; 9.3 Accept the Faithful Performance Bond, Labor and Materials Bond, and Monument Bond as security for the agreements. R:~Agenda\032602 4 10 Tract Map No. 29639 - Harveston Erosion Control Aqreement and Bond (located west of Margarita Road, east of the 1-15 Freeway, and north of Winchester Road) RECOMMENDATION: 10.1 Accept the Erosion Control Agreement for Tract Map No. 29639 and the Erosion Control Bond collected to secure Erosion Control Improvements. 11 Tract Map No. 30088 - Harveston Erosion Control Agreement and Bond (located west of Margarita Road, east of the 1-15 Freeway, and north of Winchester Road) RECOMMENDATION: 11.1 Accept the Erosion Control Agreement for Tract Map No. 30088 and the Erosion Control Bond collected to secure Erosion Control Improvements. 12 Approval of the Prequalified Contractors and the Plans and Specifications for the Mercantile Buildinq Seismic Retrofit Project - Project No. PW01-20 and authorization to solicit Construction Bids RECOMMENDATION: 12.1 Approve Lehigh Construction Company, Los Angeles; CA, 2H Construction, Inc., Long Beach, CA; M.R. Bracey Construction Company, Inc., Ontario, CA; Sea Pac Engineering, Inc., Reseda, CA; SPS, inc., Anaheim, CA, as the prequalified contractors eligible to submit bids for the Mercantile Seismic Retrofit Project; 12.2 Approve the Construction Plans and Specifications and authorize the Department of Public Works to solicit construction bids to the prequalified contractors for the Mercantile Building Seismic Retrofit Project - Project No. PW01-20. 13 Award the Construction Contract for the Pala Road Improvements -Phase I - Project No. PW99-11 RECOMMENDATION: 13.1 Award a construction contract to R.J. Noble Company for the Pala Road Improvements - Phase I - Project No. PW99-11 - in the amount of $456,172.28 and authorize the City Manager to execute the contract; 13.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $45,617.23 which is equal to 10% of the contract amount; 13.3 Accelerate an appropriation of $700,000.00 from Reimbursement Revenues from the Temecula Band of Luiseno Mission Indians. R:~Agenda\032602 5 14 Corporation Grant Deed for the proposed new Temecula Library Site - Proiect No. PW00- 07CSD and Fire Station No. 84 RECOMMENDATION: 14.1 Approve the Corporation Grant Deed for the proposed new Library site - Project No, PW00-07CSD; 14.2 Approve the Corporation Grant Deed for Fire Station No. 84, RECESS CITY COUNCIL MEETING TO SCHEDULED MEETINGS OF THE TEMECULA COMMUNITY SERVICES DISTRICT, THE CITY OF TEMECULA REDEVELOPMENT AGENCY, AND TEMECULA PUBLIC FINANCING AUTHORITY R:~Agenda\032602 6 TEMECULA COMMUNITY SERVICES DISTRICT MEETING Next in Order: Ordinance: No. CSD 2002-01 Resolution: No. CSD 2002-02 CALL TO ORDER: President Jeff Stone ROLL CALL: DIRECTORS: Comerchero, Naggar, Pratt, Roberts, Stone 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 your name and address for the record. CONSENT CALENDAR 1 Food and Snack A.qreement RECOMMENDATION: 1.1 Approve a non-exclusive agreement between the City of Temecula Community Services Department and Eric Thompson and Wendy Sauceda of Barbie's Hot Dogs, etc. to provide food and snack services at City parks, facilities, and special events. 2 Rancho California Sports Park Americans with Disabilities (ADA) Capital Improvement Proiect RECOMMENDATION: 2.1 Approve a transfer of the remaining Community Development Block Grant (CDBG) funds in the School Site ADA Project to the Rancho California Sports Park ADA Access Project. R:~Agenda\032602 7 DISTRICT BUSINESS 3 Vail Ranch Park Site C Master Plan RECOMMENDATION: 3.1 Approve the Vail Ranch Park Site C Master Plan. 4 Children's Museum Conceptual Master Plan RECOMMENDATION: 4.1 Approve the Conceptual Master Plan in its substantial form for the Imagination Workshop - Temecula Children's Museum; 4.2 Approve an appropriation of $781,000 from the General Fund Reserves to the Children's Museum - Project Account No. 210-190-165-5804; 4.3 Approve Amendment No. 2 to the agreement with Sparks Exhibits and Environments for exhibit construction in the amount of $830,000 and a 10% contingency in the amount of $63,000; 4.4 Authorize the formal public bid for tenant improvements for the Children's Museum. DEPARTMENTAL REPORT DIRECTOR OF COMMUNITY SERVICES REPORT GENERAL MANAGER'S REPORT BOARD OF DIRECTORS' REPORTS ADJOURNMENT Next regular meeting: Tuesday, April 9, 2002, 7:00 PM, City Council Chambers, 43200 Business Park Drive, Temecula, California. R:~Agenda\032602 8 TEMECULA REDEVELOPMENT AGENCY MEETING Next in Order: Ordinance: No. RDA 2002-01 Resolution: No. RDA 2002-05 CALL TO ORDER: Chairperson Jeff Comerchero ROLL CALL AGENCY MEMBERS: Naggar, Pratt, Stone, Roberts, Comerchero 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 no__~t 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 flied 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 vour name and address for the record. JOINT MEETING OF THE CITY COUNCIL/REDEVELOPMENT AGENCY/TEMECULA PUBLIC FINANCING AUTHORITY COUNCIL/AGENCY/AUTHORITY BUSINESS 1. Issuance of Tax Allocation Bonds by the Redevelopment Aqenc¥ of the City of Temecula for the Temecula Redevelopment Proiect No. 1 RECOMMENDATION: 1.1 That the City Council adopt a resolution entitled: RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA OF TAX ALLOCATION BONDS R:~Agenda\032602 9 1.2 That the Redevelopment Agency adopt a resolution entitled: RESOLUTION NO. RDA 02- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AUTHORIZING THE ISSUANCE AND SALE OF TAX ALLOCATION BONDS IN CONNECTION WITH TEMECULA REDEVELOPMENT PROJECT NO. 1, AND APPROVING RELATED DOCUMENTS AND ACTIONS 1.3 That the Authority adopt a resolution entitled: RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF TAX ALLOCATION BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND APPROVING OTHER MATTERS RELATED THERETO DEPARTMENTAL REPORT EXECUTIVE DIRECTOR'S REPORT AGENCY MEMBERS' REPORTS ADJOURNMENT Next regular meeting: Tuesday, April 9, 2002, City Council Chambers, 43200 Business Park Drive, Temecula, California. R:~Agenda\032602 10 TEMECULA PUBLIC FINANCING AUTHORITY Next in Order: Ordinance: No. TPFA 2002-01 Resolution: No. TPFA 2002-02 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 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 no.~t 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 your name and address for the record. JOINT MEETING OF THE CITY COUNCIL AND THE TEMECULA PUBLIC FINANCING AUTHORITY PUBLIC HEARING Any person may submit written comments to the Temecula Public Financing Authority 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. R:~Agenda\032602 11 1 Formation of Temecula Public Financinq Authority Community Facilities District No. 01 - 02 (Harveston) RECOMMENDATION: 1.1 That the City Council hold a continued public hearing regarding the bond financing by the proposed Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) of various roadway improvements, and adopt the resolutions entitled: RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA MAKING FINDINGS WITH RESPECT TO AND APPROVING THE ISSUANCE OF BONDS BY THE TEMECULA FINANCING AUTHORITY RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING JOINT COMMUNITY FACILITIES AGREEMENT RELATING TO THE FINANCING OF PUBLIC IM PROVEM ENTS 1.2 That the Public Financing Authority hold continued public hearings regarding the formation of the proposed Community Facilities District No. 01-2 (Harveston) (the "CFD"), the levy of special taxes in the CFD, and the issuance of bonds by the Public Financing Authority for the CFD, and adopt the resolutions entitled: RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF FORMATION OF TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT, PRELIMINARILY ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT AND SUBMITrlNG LEVY OF THE SPECIAL TAX AND THE ESTABLISHMENT OF THE APPROPRIATIONS LIMIT TO THE QUALIFIED ELECTORS OF THE DISTRICT R:~Agenda\032602 12 RESOLUTION NO. TPFA 02- 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. 01-2 (HARVESTON) AND SUBMITTING PROPOSITION TO THE QUALIFIED ELECTORS OF THE DISTRICT RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY CALLING SPECIAL ELECTION WITHIN COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) 1.3 That the Public Financing Authority hold an election regarding the CFD, and adopt the resolution entitled: RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY DECLARING RESULTS OF SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN 1.4 That the Public Financing Authority have the first reading of the ordinance entitled: ORDINANCE NO. TPFA 02- AN ORDINANCE OF THE TEMECULA PUBLIC FINANCING AUTHORITY LEVYING SPECIAL TAXES WITHIN TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) EXECUTIVE DIRECTOR'S REPORT BOARD MEMBERS' I~EPORTS ADJOURNMENT Next regular meeting: Tuesday, April 9, 2002, City Council Chambers, 43200 Business Park Drive, Temecula, California. R:~Agenda\032602 13 RECONVENE TEMECULA CITY COUNCIL MEETING 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. 15 Environmental Review of the Temecula Public Library RECOMMENDATION: 15.1 Adopt a Mitigated Negative Declaration, including the mitigation monitoring program for the Temecula Public Library project. DEPARTMENTAL REPORTS CITY MANAGER'S REPORT CITY ATTORNEY'S REPORT ADJOURNMENT Next regular meeting: City Council, Tuesday, April 9, 2002, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. R:\Agenda\032602 14 PROCLAMATIONS AND PRESENTATIONS ITEM 1 ITEM 2 MINUTES OF AN ADJOURNED WORKSHOP MEETING OF THE TEMECULA CITY COUNCIL JANUARY 29, 2002 The City of Temecula City Council convened in an adjourned workshop meeting at 5:34 P.M., on Tuesday, January 29, 2002, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. ALLEGIANCE The audience was led in the Flag salute by Councilman Comerchero. ROLL CALL Present: Councilmembers: Comerchero, Naggar, *Pratt, *Stone, Roberts. * Mayor Pro Tam Stone arrived at 5:48 P.M. and Councilman Pratt arrived at 6:11 P.M. Absent: Councilmember: None. PUBLIC COMMENTS There were no public comments. CITY COUNCIL REPORTS A. In response to Councilman Naggar's comments with regard to an e-mail received by Ms. Adrienne McGregor, Assistant City Manager O'Grady advised that staff is addressing the Valley Rainbow connection and SDG&E's application to the California Public Utilities Commission. COUNCIL BUSINESS 1 Eighth Workshop for the Riverside County Inte.qrated Plan (RCIP) RECOMMENDATION: 1.1 Receive and file. Briefly introducing the agenda item, City Manager Nelson introduced Mr. Richard Lashbrook, Agency Director, who proceeded with an overview of the General Plan, the Transportation Mitigation Fee (TUMF), the Multi-Species Habitat Conservation Plan (MSHCP), and the Special Area Management Plan (SAM), highlighting the following: · Completion dates of the various elements of the Integrated Plan o General Plan o That the County wo'uld not approve any General Plan amendment changes between foundation categories accept for every five years R:\Minutes\012902 1 Mayor Roberts expressed concern that this recommendation would not address current amendment requests and only those of the future o Community Centers o Transportation o Incentive Program o Allowing higher density in some areas but also facilitate the cross training and development of preservation/open space/rural areas o Areas for community development/rural/agricultural will be defined o Timeframe o Public Hearings in April of 2002 o May/June 2002 release of the Environmental Impact Report (EIR) o Final EIR Hearing and adoption late August 2002 · Circulation Element/Community Environmental Transportation Acceptability Process (CETAP) o Completed an analysis of the traffic impacts of the Land Use Plans o Build out of entire Western County (cities and County) - 1 million dwelling units - 77% in the cities or cities' sphere of influence - currently 72% within the cities. o Employment - at build out of all cities' General Plans and County - 1.3 million employees - 78% in cities or cities' sphere of influence - currently 75% - 2020 project to be at 65% at build out o Analysis of traffic issues associated with each alternative o Impact without new General Plan o Impact of proposed General Plan o Decrease for Temecula area as compared to the existing General Plan at build out o Increase for Winchester area R:\Minutes\012902 2 o Transit Oasis/Nodes of development o Link Community/City centers to follow freeway system o Transit station - possibly at the mall, Lennar project, etc. o Expanded transit service- Express Service Although the plan has been revised, Councilman Comerchero expressed concern that the 79 North route was not originally reflected in the RTA's 10-year plan as a primary transit network. In response to Councilman Comerchero, Mr. Smith noted that the 10-year Strategic Plan was completed prior to the efforts of the Integrated Plan but reiterated that the RTA has been involved in the process of producing this document. · CETAP o Aware of City's desire to retain Butter'field Stage Road as a four-lane arterial o Outstanding issues with federal agencies that should be resolved in March o Public Hearing for EIPJEIS to start in May o Review to be completed in July with a possible locally preferred alternative in August · Multi-Species Habitat Conservation Plan o Conserve a large number of species which may require the County to conserve approximately an additional 153,000 acres above what is currently reflected in the public or quasi-public ownership o Combination of the cells and associated criteria will describe how the MSHCP will be put together o Funding - continue to explore a multi-sourced system (State/Federal/local sources) o Release draft in February/March of 2002 - conceptual support resolution by mid February/March with an application for the Section 10A permit o Public review in May - final EIR/EIS for adoption of Plan by November 2002. Being aware of the City's issues of concern with regard to land use and the MSHCP, it was noted by Mr. Lashbrook that the County is working with a group of City Managers to create a Memorandum of Understanding to clearly define the relationship of cities/county in the development of the process. Mayor Roberts requested that the City Council receive maps of the MSHCP. In response to Councilman Naggar's query with regard to Lake EIsinore, it was noted that efforts are underway to determine what land could be conserved and developed in the larger projects. R:\Minutes\012902 3 MOTION: Councilman Naggar moved to receive and file the report. The motion was seconded by Councilman Comerchero and voice vote reflected unanimous approval. 2 Participation in the Riverside County integrated Plan (RCIP) including the Multi-Species Habitat Conservation Program (MSHCP) RECOMMENDATION: 2.1 Adopt a resolution entitled: RESOLUTION NO. 02-11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA REGARDING PARTICIPATION IN THE RIVERSIDE COUNTY INTEGRATED PLAN (RCIP) INCLUDING THE MULTI- SPECIES HABITAT CONSERVATION PROGRAM (MSHCP) COMPONENT City Manager Nelson reviewed the conceptual recommendation, noting that once the implementation agreement is established (anticipated by the end of this year), the City will have the opportunity to discuss the implementation/coordination of the program. For Councilman Comerchero, it was clarified that the intent of the proposed resolution would be to provide to the County an indication of what cities will continue to participate in the RCIP and that when the draft Plan is available, there will be an opportunity for comments and changes. In response to Mayor Pro Tern Stone, Mr. Lashbrook advised that an RFP has been released in order to complete a nexus study for the adoption of development mitigation fees, noting that his rough projections would be $1,000 to $1,500 per unit. Councilman Naggar commended Mr. Lashbrook and staff on his efforts associated with the RCIP. MOTION: Mayor Pro Tem Stone moved to adopt Resolution No. 02-11. The motion was seconded by Councilman Naggar and voice vote reflected unanimous approval. 3 Transportation Uniform Mitigation Fee (TUMF) RECOMMENDATION: 3.1 Adopt.a resolution entitled: RESOLUTION NO, 02-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA REGARDING PARTICIPATION IN THE TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) Ms. Taylor-Berger of Western Riverside County Council of Government (WRCOG) further commented on the County's/City's anticipated growth, noting that such growth equates to R:\Minutes\012902 4 transportation/planning issues/needs; advised that the Transportation Uniform Mitigation Fee (TUMF) will target arterials and interchanges; that it will provide a fair-share mechanism for the development based on new developments; that the proposed resolution would be to reaffirm the City's commitment to the TUMF program; and that the TUMF should be in place by June 2002. Mayor Pro Tern Stone requested the implementation of an interim TUMF in order to stop the delay of collecting these funds so that the needed infrastructure could be provided. City Manager Nelson relayed his concurrence with the implementation of an interim fee; advised that the City Managers' Group was desirous of immediately establishing a Regional Network Fee and that the local geographic return to source component not slow down the adoption of the Regional Network Fee. Ms. Taylor-Berger noted that the nexus study should be completed around February and that it would be forwarded to the City Managers' Group for further guidance. Mayor Pro Tern Stone reiterated his desire to impose an interim fee. City Manager Nelson suggested the adoption of the resolution and that at the next WRCOG meeting, it be requested that an interim fee be imposed. Councilman Naggar relayed his support of an interim fee. MOTION: Mayor Pro Tem Stone moved to adopt Resolution No. 02-12 amended as follows: Be it further resolved that this City Council strongly encourages that all Western Riverside County public entities adopt, on an immediate basis, an interim TUMF for purposes of carrying out the long-range plan of this program. The motion was seconded by Councilman Comerchero and voice vote reflected unanimous approval. Ms. Taylor-Berger noted that copies of her presentation were submitted to the City Clerk and that maps would be forwarded. CITY MANAGER'S REPORT There were no additional comments. CITY ATTORNEY'S REPORT There were no additional comments. R:\Minutes\012902 5 ADJOURNMENT At 6:45 P.M., Mayor Roberts formally adjourned the City Council meeting to Tuesday, January 29, 2001, at 7:00 P.M. in the City Council Chambers, 43200 Business Park Drive, Temecula, California, for the purpose of a Joint City Council/Planning Commission meeting. Jeff Comerchero, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] R:\Minutes\012902 6 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL · FEBRUARY 12, 2002 After the Closed Session that convened at 6:00 P.M., the City Council convened in Open Session at 7:01 P.M., on Tuesday, February 12, 2002, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: Councilmembers: Comerchero, Naggar, Pratt, Stone, Roberts Absent: Councilmember: None PRELUDE MUSIC The prelude music was provided by Eve Craig. INVOCATION The invocation was given by Pastor W.M. Rench of Calvary Baptist Church of Temecula. ALLEGIANCE The salute to the Flag was led by Vail Elementary School. PRESENTATIONS/PROCLAMATIONS Video presentation by the Vail Elementary School Vail Elementary School showed a video, created by the school, in honor and memory of all those individuals impacted by the September 11, 2001, tragedy. Introduction of the new Police K-9 Police Chief Domenoe introduced Officer Cohen and his new K-9 partner, Kaos. Officer Cohen thanked the City Council for having the opportunity to introduce Kaos and briefly commented on the assistance Kaos has already provided in the short time that he has been with the Department. Certificate of Appreciation to Grace Weisner Expressing her appreciation for having had the opportunity to participate as Program Manager for the Juvenile Offender Law Enforcement Team, Deputy Adams introduced Grace Weisner, Youth Court Clerk, and thanked her for her volunteering efforts and presented to her a Certificate of Appreciation. Introduction of the Community Action Patrol (C.A.P.) Graduates Bdefly describing this community volunteer program, Police Chief Domenoe proudly introduced the nine members of the first graduating class and extended his appreciation to Officer Anderson for his efforts associated with this newly formed program. R:\Minutes\021202 1 PUBLIC COMMENTS A. Ms. Kay Williams, 45542 Masters Drive, President of the Temecula Town Association Board of Directors, informed the City Council that the Association is a 31-year old non-profit charitable Association; advised that the City of Temecula, Historic Old Town Temecula, and the Temecula Town Association had received another distinction - an award from the California Downtown Association (a State organization) by voting the Temecula Rod Run as the Best Special Event in the State of California; noted that the 16th Annual Rod Run is quickly approaching; and thanked the City, City staff, and the volunteers for their support and assistance; and presented to each Councilmember a souvenir event poster. Ms. Williams introduced Ms. Diane Sitar, 32221 Corte Tomatlan, who provided a heartwarming overview of the 2001 Community Christmas Dinner and thanked the City Council and the numerous volunteers who made this Sixth Annual Dinner another success. B. As a candidate for the Riverside County Audit Controller, Ms. Teri Ferro, 29054 Forest View, introduced herself to the City Council and the public and requested their vote on March 5, 2002. CITY COUNCIL REPORTS A. With regard to the video presentation, Councilman Naggar commended Vail Elementary School on a job well done. B. Councilman Pratt commented on the benefits such as the Christmas Dinner that can be accomplished with community involvement. C. Having attended the 25th Anniversary Celebration for Boy Scout Troop No. 301, Councilman Comerchero advised that he, on behalf of the City, presented to the Troop a Certificate of Achievement to the Troop and noted that the Troop presented to the City a Plaque of Appreciation for its continued support. Mr. Comerchero sadly announced that the Inland Empire has lost one of its leaders, Ms. Cora Sue Barrett, Mayor of the City of Canyon Lake. Mayor Pro Tern Stone noted that the City would be making a donation to the American Cancer Society on behalf of Ms. Barrett. D. Commenting on the recent windstorm, Mayor Pro Tern Stone commended the Public Works Department on its responsiveness in addressing several emergency matters. E. In response to a letter received by a constituent in which it was noted that another City had increased the yellow light frequency by 11/2 seconds in order to decrease the red light abuses, Mayor Pro Tern Stone requested that the Public Works Department explore the merit of such action, advising that the City that had implemented such a measure noted a 30% to 40% decrease in red light abuses. F. Commenting on his recently attended U.S. Conference of Mayors, Mayor Roberts advised that President Bush had spoken at the Conference to address security issues; that he had the opportunity to travel on a high-speed rail; and commented on program put together as a result of the September 11, 2001, tragedy, whereby each participating City will be hosting a New York City Firefighter, noting that the City's hosted firefighter will be Joaquin DaSilva from Unit E-305 and advising that Temecula Creek Inn has offered to donate the room. R:\Minutes\021202 Mayor Pro Tern Stone suggested the hosting of a fundraiser banquet in Firefighter DaSilva's honor and that all collected monies be forWarded to the New York firefighter victims. CONSENT CALENDAR 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Resolution Approvin.q List of Demands RECOMMENDATION: 2.1 Adopta resolution entitled: RESOLUTION NO. 02-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 3 City Treasurer's Report as of December 31, 2001 RECOMMENDATION: 3.1 Receive and file the City Treasurer's Report as of December 31, 2001. 4 Approval of 2001-02 Mid-Year Bud,qet Adiustments RECOMMENDATION: 4.1 Adopt a resolution entitled: RESOLUTION NO. 02-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, AMENDING THE FISCAL YEAR 2001-02 ANNUAL OPERATING BUDGET 5 Property Insurance Renewal RECOMMENDATION: 5.1 Approve the City of Temecula Property Insurance Policy renewal with Chubb Insurance Company, Royal/Agricultural Insurance Companies and Lloyd's of London for the period of February 26, 2002, through February 26, 2003, in the amount of $95,980. R:~linutes~021202 6 Approve the Temecula Fall Cruisinq and Car Show Sponsorship Request RECOMMENDATION: 6.1 Approve the Drifters Car Club and P & R Productions sponsorship request for the Temecula Fall Cruising and Car Show to benefit the Temecula Veterans of Foreign Wars of the U.S. (VFVV) Post 4089 and authorize the Economic Development 6.2 Subcommittee to approve an additional non-profit organization in Temecula. 7 Consideration of Joint Prosecution, Confidentiality and Cost-Sharin.q A.qreement with Save Southwest Riverside County (SSRC) RECOMMENDATION: 7.1 Approve an Agreement with Save Southwest Riverside County (SSRC) regarding joint prosecution, confidentiality, and cost sharing in the matter of the Application of the San Diego Gas & Electric Company for a Certificate of Public Convenience and Necessity for the Valley-Rainbow 500 KV Interconnect Project. 8 Parcel Map No. 28827-1 (located at the southeast comer of Western Bypass Corridor/State Route 79 South and Front Street RECOMMENDATION: 8.1 Approve Parcel Map No. 28627-1 in conformance with the conditions of approval; 8.2 Approve the Subdivision Improvement Agreement and accept the Faithful Performance and Labor and Materials Bond as security for the agreements; 8.3 Approve the Subdivision Monument Agreement and accept the Monument Bond as security for the agreement. 9 Authorize Temporary Street Closures for Temecula Rod Run 2002 Event in Old Town (Old Town Front Street between Moreno Road and First Street, and other related streets) RECOMMENDATION: 9.1 Adopt a resolution entitled: RESOLUTION NO. 02-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, AUTHORIZING STREET CLOSURES FOR TEMECULA ROD RUN 2002 EVENT, AND AUTHORIZING THE CITY ENGINEER TO ISSUE A PERMIT FOR THIS SPECIFIC SPECIAL EVENT R:\Minutes\021202 10 Acquisition of Tax-Defaulted Property for Draina,qe Facility Purposes RECOMMENDATION: 10.1 Adopt a resolution entitled: RESOLUTION NO. 02-16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA OBJECTING TO THE PUBLIC SALE OF CERTAIN TAX DEFAULTED PROPERTY LYING WITHIN THE CITY OF TEMECULA OFFERING TO PURCHASE THE PROPERTY FOR PUBLIC DRAINAGE FACILITY PURPOSES 11 Award of Construction Contract for Citywide P.C.C. Repairs FY2001-2002 - Project No. PW01-30 RECOMMENDATION: 11.1 Award a construction contract for the Citywide P.C.C. Repairs FY2001-2002 - Project No. PW01-30 to Intemational Pavement Solutions, Inc. in the amount of $61,433.00 and authorize the Mayor to execute the contract; 11.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $ 6,143.30 which is equal to 10% of the contract amount. 12 Parkin.q Restriction - Solana Way between Ynez Road and Mar.qarita Road RECOMMENDATION: 12.1 Adopt a resolution entitled: RESOLUTION NO. 02-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF · TEMECULA ESTABLISHING A "NO PARKING" ZONE ON BOTH SIDES OF SOLANA WAY BETWEEN YNEZ ROAD AND MARGARITA ROAD 13 Completion and Acceptance of Construction Contract for Old Town First Street Brid,qe over Murrieta Creek- Project No. PW95-08 RECOMMENDATION: 13.1 Accept the Old Town First Street Bddge over Murrieta Creek Project - Project No. PW95-08 - as complete; 13.2 File a Notice of Completion, release the Performance Bond, and accept a 12-month Maintenance Bond in the amount of 10% of the contract; R:\Minutes\021202 5 13.3 Release the Materials and Labor Bond 7 months after filing of the Notice of Completion if no liens have been filed. (Mayor Pro Tem Stone abstained with regard to this matter.) 14 Resolution of Support for Proposition No. 40 - Clean Water, Clean Air, Safe Neiqhborhood Parks, and Coastal Protection Bond Act of 2002 RECOMMENDATION: 14.1 Adopt a resolution entitled: RESOLUTION NO. 02-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SHOWING OUR SUPPORT OF PROPOSITION NO. 40 ENTITLED CLEAN WATER, CLEAN AIR, SAFE NEIGHBORHOOD PARKS AND COASTAL PROTECTION BOND ACT OF 2002 15 Chan,qe of Per Capita Grant Funds Proiect RECOMMENDATION: 15.1 Approve the use of Proposition No. 12 funds in the amount of $450,000 for the Chaparral High School Swimming Pool Project in lieu of Capital Reserves Funds. MOTION: Councilman Stone moved to approve Consent Calendar Item Nos. 1 - 12 and 14 - 15 (Item No. 13 was separately voted on). The motion was seconded by Councilman Naggar and voice vote reflected unanimous approval. MOTION: Councilman Naggar moved to approve Consent Calendar Item No. 13. The motion was seconded by Councilman Comerchero and voice vote reflected approval with the exception of Mayor Pro Tem Stone who abstained. At 7:38 P. M, the City Council convened as the Temecula Community Services District, the Temecula Redevelopment Agency, and the Temecula Public Financing Authority and after a short recess, resumed at 8:13 P.M. with regularly scheduled City Council business. COUNCIL BUSINESS 16 Temecula Transit Presentation - Receive and file (5-0-0) JS/JC RECOMMENDATION: 16.1 Receive the presentation and report by Councilmember Pratt. By way of a PowerPoint presentation, Councilman Pratt provided a detailed overview of this proposed Temecula Traffic and Transportation Plan (of record). Commending Councilman Pratt on his time and effort with regard to the presentation, Mayor Pro Tern Stone relayed his concurrence that public transportation needs to be addressed but stated that the City of Temecula cannot alone carr,j the responsibility for a Statewide issue such as this R:\Minutes\021202 6 and, therefore, suggested that the City continue to concurrently work with the State and Federal elected officials to achieve buy-in on a regional transportation plan. With regard to comments made by Mr. Pratt, Mr. Stone relayed concern with the following issues: · Charge for parking at the regional mall · City has no jurisdiction to place public toll booths on a Caltrans facility · Other noted fees Echoing Mayor Pro Tern Stone's comments, Councilman Comerchero congratulated Mr. Pratt on his efforts and noted the following: · That new route construction projects include the widening of Highway 79, north Winchester Road to six lanes with extensions of Scott/Newport Roads and Clinton Keith Road and Domenigoni Parkway in an effort to alleviate the French Valley traffic off Winchester Road; · That past surveys have indicated that under 30% of the residents would utilize a public transportation system; · That he would oppose parking fees at the regional mall. In closing, Mr. Comerchero commented on the importance of public transportation; noted that efforts are underway to implement such a system in the most appropriate manner; and relayed his desire to take action with regard to this matter this evening versus continuing it to the next City Council meeting. Echoing those comments made by Councilman Comerchero and Mayor Pro Tern Stone, Councilman Naggar as well noted the importance of public transportation but stated that the City cannot alone handle the associated financial burden of such a system; suggested the creation of taxi service for those 30% of individuals that would utilize a public transportation system; and noted that the City has spent the last two years to address growth issues. As well echoing those comments of his fellow colleagues, Mayor Roberts commented on the importance of the passage of Measure A, viewing it as the transportation future for Riverside County; advised that in order to make a transportation plan successful, a City must have transit nodes with high densities; that the extension of commuter rail (Metrolink) is being considered if funding were available; and commented on other altematives such as high-speed rail and the MagLev. Speaking in opposition to the comments made by his fellow colleagues, Councilman Pratt noted that by the end of this year, the City's serious traffic problems will have a negative impact on the City's economy. MOTION: Mayor Pro Tern Stone moved to receive and file the report and to not accept recommendations of the overall plan at this time. The motion was seconded by Councilman Comerchero and voice vote reflected unanimous approval. CITY MANAGER'S REPORT No comments. R:~Minutes\021202 7 CITY ATTORNEY'S REPORT City Attorney Thorson advised that with regard to Closed Session No. 3 (Ross v. Stone), the City Council by a 5-0 vote instructed him to not seek attorney fees from the other party. Mr~ Thorson advised that he had not participated in the Closed Session Item with regard to Eddie Roy Elder v. City of Temecula. W~th regard to the Eddie Roy Elder v. City of Temecula, City Manager Nelson advised that under the Brown Act, there was no reportable action. ADJOURNMENT At 9:10 P~M., the City Council meeting was formally adjoumed to Tuesday, February 26, 2002, at 7:00 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. Ron Roberts, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] R:\Minutes\021202 8 ITEM 3 RESOLUTION NO. 02- 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 $4,574,437.49. Section 2. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED, this 26th day of March, 2002. Ron Roberts, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] R:/Resos2002/Resos 02- 1 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. 02- was duly adopted at a regular meeting of the City Council of the City of Temecula on the 26th day of March, 2002 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk R:/Resos2002/Resos 02- 2 CITY OF TEMECULA LIST OF DEMANDS 03/O1/02 TOTAL CHECK RUN: $ 1,261,309.88 03/07/02 TOTAL CHECK RUN: 423,992.59 03/144)2 TOTAL CHECK RUN: 502~65~2 0w26~2 TOTAL CHECK RUN: 1,g08,407~0 02/28/02 TOTAL PAYROCL RUN: 236,489.32 0~14A)2 TOTAL PAYROCL RUN: 241~72~8 TOTAL MST O~ DEMAND~ FOR ~ COUNCIL MEETING: $ 4r574,437.49 DISBURSEMENT~ BY FUND: CHECKS: 001 GENERA[ FUND $ 2~)2~80.04 165 RDA DEV4.O~N/MOD SET ASIDE 57,153.50 190 COI~MUNITY SERVICES DISTRICT 202~01.39 192 TCSD SERVICE LEVEL B ; 38,180.03 19;3 TCSD SERV!CE LEVEL C 63,313.98 194 TCSD SERVICE LEVEL D 817.09 210 CAPtTAL D~PROVEMENT PROJ. FUND 548,804.40 261 CFD 88-12 ADMIN EXPENSE FUND 196.85 280 REDEVELQPMENT AGENCY-CJP 22,720.gl 300 INSURANCE FUND 115~6837 310 VEHICLES FUND 3~46~4 320 INFORMATION SYSTE~ 42,866.06 330 SUPPORT SERVICES 2~78.56 340 FACIIJTIES 19,792.44 460 CFD 88-12 DEBT SVC FUND 430,428.75 470 CFD 98-1 ADMIN EXP 348~25.38 $ 4,096,675~9 100 GENERAL FUND $ 341,526.37 165 RDA-LOW/MOD SET ASIDE 8,642.08 190 CONK~NITY SERVICES D~STRICT 87,549.01 192 TCSD SERVICE LEVEL B 133.39 t93 TCSD SERVICE LEVEL C 7,319.93 194 TCSD SERVICE t. EVEL D 1,127.43 280 REDEVELOPMENT AGENCY-CIP 4,110.80 300 INSURANCE FUND 1,734.11 320 INFORMATION SYSTEMS 12,395.14 330 SUPPORT SERVICES 4,183.36 340 FACIMT(E$ 9,040.58 477,762~0 TOTAL I~Y FUND: $ 41574r437.49 PREPARED YONI<ER, U .qPECIALIST VOUCNRE2 CITY OF TEMECULA PAGE 14 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS FUND TITLE AMOUNT 001 GENERAL FUND 244,559.58 165 RDA DEV~ LOW/MOD SET ASIDE 5,318.35 190 COMMUNITY SERVICES DISTRICT 93,525.23 192 TCSD SERVICE LEVEL B 41.86 193 TCSD SERVICE LEVEL C 48,195.75 194 TCSD SERVICE LEVEL D 359.68 210 CAPITAL IMPROVEMENT PROJ FUND 71,565.51 280 REDEVELOPMENT AGENCY - DIP 6,258.25 300 INSURANCE FUND 408.35 320 INFORMATION SYSTEMS 9t084.13 330 SUPPORT SERVICES 659.52 340 FACILITIES 4,379.54 460 CFD 88-12 DEBT SERVICE FUND 430,428.75 470 DFD 98-I DEBT SERVICE FUND 346,525.38 TOTAL 1,261,309.88 VOUCHRE2 CITY OF TEMECULA PAGE 1 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 20228 02/28/02 000642 TEMECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 001.1020 365.02 20228 02/28/02 000642 TEMECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 165.1020 5.03 20228 02/28/02 000642 TEMECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 280.1020 1.68 20228 02/28/02 003228 U S BANK TRUST NATIONAL CFD 88-12 DEBT SERVICE PAYMENT 460.1040 430,428.75 430,800.48 22802 02/28/02 003228 U S SANK TRUST NATIONAL CFD 98-1 DEBT SERVICE PAYMENT 470.1040 346,525.38 346,525.38 75197 02/28/02 004456 T&M CONSTR./VAR STP NTC STP NTC SETTLEMENT:MAINT FAC 210.2038 2,528.00 2,528.00 75198 02/28/02 004456 T&M CONSTR./VAR STP NTE STP NTC SETTLEMENT:MAINT FAC 210.2038 5,913.00 5,913.00 75199 02/28/02 004456 T&M CONSTR./VAR STP NTC STP NTC SETTLEMENT:MAINT FAC 210.2038 4,032.00 4,032.00 75200 02/28/02 004456 T&M CONSTR./VAR STP NTC STP NTC BETTLEMENT:MAINT FAC 210.2038 9,601.00 9,601.00 75201 02/28/02 004456 T&M CONSTR./VAR STP NTE STP NTC SETTLEMENT:MAINT FAC 210.2038 12,450.00 12,450.00 75202 02/28/02 004456 T&M CONBTR./VAR STP NTE STP NTC SETTLEMENT:MAINT FAC 210.2038 3,095.00 3,095.00 75203 02/28/02 004456 T&M CONSTR./VAR STP NTC STP HTC SETTLEMENT:MAINT FAC 210.2038 13,405.74 13,405.74 75678 02/28/02 000246 PER$ EMPLOYEES' RETIRE 000246 PERS RET 001.2390 27,408.13 75678 02/28/02 000246 PERS EMPLOYEES~ RETIRE 000246 PERS RET 165.2390 669.01 75678 02/28/02 000246 PERB EMPLOYEES' RETIRE 000246 PERS RET 190.2390 5,293.80 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 PERS RET 192.2390 12.06 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 PERE RET 193.2390 494.51 75678 02/28/02 000246 PERB EMPLOYEES' RETIRE 000246 PER$ RET 194.2390 105.04 75678 02/28/02 000246 PERB EMPLOYEES' RETIRE 000246 PERS RET 280.2390 289.21 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 PERB RET 300.2390 139.55 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 PERB RET 320.2130 26.51 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 PERB RET 320.2390 1,030.54 75678 02/28/02 000246 PERS EMPLOYEES~ RETIRE 000246 PERS RET 330.2390 223.51 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 PERS RET 340.2390 596.88 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 PERS-PRE 001.2130 182.91 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 001.2390 93.01 75678 02/28/02 000246 PER$ EMPLOYEES' RETIRE 000246 SURVIVOR 165.2390 1.87 75678 02/28/02 000246 PERB EMPLOYEES' RETIRE 000246 SURVIVOR 190.2390 20.70 75678 02/28/02 000246 PERB EMPLOYEES' RETIRE 000246 SURVIVOR 192.2390 .05 75678 02/28/02 000246 PERB EMPLOYEES' RETIRE 000246 SURVIVOR 193.2390 2.28 75678 02/28/02 000246 PRES EMPLOYEES' RETIRE 000246 SURVIVOR 194.2390 .36 75678 02/28/02 000246 P~RS EMPLOYEES' RETIRE 000246 SURVIVOR 280.2390 .92 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 300.2390 .46 75670 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 320.2390 3.72 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 330.2390 1.39 75678 02/28/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 340.2390 2.65 36,599.07 403222 02/28/02 000283 INSTATAX (IRS) 000283 FEDERAL 001.2070 24,395.88 403222 02/28/02 000283 INBTATAX (IRS) 000283 FEDERAL 165.2070 425.47 403222 02/28/02 000283 INSTATAX (IRS) 000283 FEDERAL 190.2070 5,375.33 403222 02/28/02 000283 INSTATAX (IHS) 000283 FEDERAL 192.2070 18.45 403222 02/28/02 000283 INSTATAX (IRS) 000283 FEDERAL 193.2070 477.65 VOUCNRE2 CITY OF TEMECULA PAGE 2 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 403222 02/28/02 000283 INBTATAX (IRS) 000283 FEDERAL 194.2070 138.15 403222 02/28/02 000283 [NSTATAX (IRS) 000283 FEDERAL 280.2070 149.41 403222 02/28/02 000283 [NSTATAX (IRS) 000283 FEDERAL 300.2070 78.18 403222 02/28/02 000283 INSTATAX (IRS) 000283 FEDERAL 320.2070 1,090.45 403222 02/28/02 000283 INBTATAX (IRS) 000283 FEDERAL 330.2070 235.61 403222 02/28/02 000283 INSTATAX (IRS) 000283 FEDERAL 340.2070 527.42 403222 02/28/02 000283 INBTATAX (IRS) 000283 MEDICARE 001.2070 6~430.99 403222 02/28/02 000283 INSTATAX (IRS) 000283 MEDICARE 165.2070 158.41 403222 02/28/02 000283 INSTATAX (IRS) 000283 MEDICARE 190.2070 1,543.05 403222 02/28/02 000283 IHBTATAX (IRS) 000283 MEDICARE 192.2070 2.80 403222 02/28/02 000283 INBTATAX (IRS) 000283 MEDICARE 193.2070 129.76 403222 02/28/02 000283 1NBTATAX (IRS) 000283 MEDICARE 194.2070 23.65 403222 02/28/02 000283 INBTATAX (IRS) 000283 MEDICARE 280.2070 67.67 403~22 02/28/02 000283 INSTATAX (IRS) 000283 MEDICARE 300.2070 32.48 403222 02/28/02 000283 INSTATAX (INS) 000283 MEDICARE 320.2070 287.68 403222 02/28/02 000283 IHSTATAX (IRS) 000283 MEDICARE 330.2070 71.45 403222 02/28/02 000283 INBTATAX (IRS) 000283 MEDICARE 340.2070 156.57 41,816,51 403249 02/28/02 000444 INBTATAX (EDD) 000444 $DI 001.2070 65.73 403249 02/28/02 000444 INBTATAX (EDD) 000444 BDI 165.2070 4.36 403249 02/28/02 000444 INBTATAX (EDD) 000444 BDI 190.2070 103.69 403249 02/28/02 000444 INBTATAX (ROD) 000444 BDI 193.2070 2.06 403249 02/28/02 000444 INSTATAX (EDD) 000444 BDI 280.2070 .98 403249 02/28/02 000444 INBTATAX (ROD) 000444 SDI 320.2070 3.83 403249 02/28/02 000444 INSTATAX (EDD) 000444 $DI 330.2070 5.96 403249 02/28/02 000444 INSTATAX (EDD) 000444 SDI 340.2070 3.80 403249 02/28/02 000444 INSTATAX (ROD) 000444 STATE 001.2070 6,859.23 403249 02/28/02 000444 INSTATAX (EDD) 000444 STATE 165.2070 110.01 403249 02/28/02 000444 INBTATAX (ROD) 000444 STATE 190.2070 1,280.94 403249 02/28/02 000444 INSTATAX (EDD) 000444 STATE 192.2070 5.90 403249 02/28/02 000444 INSTATAX (EDD) 000444 STATE 193.2070 113.34 403249 02/28/02 000444 INSTATAX (EDD) 000444 STATE 194.2070 43.87 403249 02/28/02 000444 INSTATAX (EDD) 000444 STATE 280.2070 36.21 403249 02/28/02 000444 INSTATAX (EDD) 000444 STATE 300.2070 19.14 403249 02/28/02 000444 INSTATAX (ROD) 000444 STATE 320.2070 259.36 403249 02/28/02 000444 IHSTATAX (EDD) 000444 STATE 330.2070 59.41 403249 02/28/02 000444 IHSTATAX (EDD) 000444 STATE 340.2070 123.25 9,101.07 75206 03/01/02 004148 A T & T LONG DISTANCE SVCS: POLICE 001.170.999.5229 89.00 89.00 75207 03/01/02 000745 A T & T WIRELESS SERVIC CELLULAR PHONE SVCS:POLICE OPT 320.199.999.5208 54.99 54.99 75208 03/01/02 003304 ADAMS ADVERTISING INC MAR OLD TOWN BILLBOARD AD 280.199.999.5362 1,926,00 1,926.00 75209 03/01/02 003066 ALTERNATIVES TO DOMESTI COMMUNITY SVC FUNDING 001.101.999.5267 5,000,00 5,000.00 75210 03/01/02 004240 AMERICAN FORENSIC NURSE CITY LIMITS BLOOD DRA~S-PD/CHP 001.170.999.5328 334.00 334.00 75211 03/01/02 000936 AMERICAN RED CROSS RED CROSS AQUATICS SUPPLIES 190.186.999.5261 35.00 75211 03/01/02 000936 AMERICAN RED CROSS RED CROSS AQUATICS SUPPLIES 190.186.999.5261 35°00 70.00 VOUCHRE2 CITY OF TEMECULA PAGE 3 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75212 03/01/02 000101 APPLE ONE, INC. TEMP HELP W/E 02/09 SENG 001.162.999.5118 520.00 75212 03/01/02 000101 APPLE ONE, INC. TEMP HELP W/E 02/09 DELARM 001.163.999.5118 572.00 1,092.00 75213 03/01/02 001445 ASSISTANCE LEAGUE OF TE 01-02 COMM SVC FUNDING AWARD 001.101.999.5267 5,000.00 5,000.00 75214 03/01/02 002648 AUTO CLUB OF SOUTHERN C MEMBERSHIP DUES: JOHN ZUNA 001.162.999.5214 44.00 44.00 75215 03/01/02 002648 AUTO CLUB OF SOUTHERN C MEMBERSHIP: BROWNELL & VOSHALL 001.161.999.5214 108.00 108.00 75216 03/01/02 002713 BALLOONS GALORE 04/14/01 SPRING EGG HUNT SUPPL 190.183.999.5370 365.50 365.50 75217 03/01/02 002541 BECKER CONSTRUCTION SRV R&R GUARD RAILS AT VARIOUS LOC 001.164.601.5402 4t643.00 4,643.00 75218 03/01/02 004856 BILLIARDS DEPOT POOL TABLE (8') & ACCESSORIES 190.181.999.5610 3~285.OD 75218 03/01/02 004856 BILLIARDS DEPOT TAX ON POOL TABLES 190.181.999.5610 254.59 7521B 03/01/02 004856 BILLIARDS DEPOT DELIVERY - ALL TABLES 190.181.999.5610 300.00 75218 03/01/02 004856 BILLIARDS DEPOT 8' SWITCH TOP-PING PONG HOCKEY 190.182.999.5301 349.00 75218 03/01/02 004856 BILLIARDS DEPOT TAX ON SWITCH TOP ONLY 190.182.999.5301 27.05 75218 03/01/02 004856 BILLIARDS DEPOT TABLES REFELT & MOVE 190.182.999.5416 975.00 5,190.64 75219 03/01/02 004262 BIO-TOX LABORATORIES LAB DRUG TESTING:POLICE/CHP 001.170.999.5328 1,529.70 75219 03/01/02 004262 BIO-TOX LABORATORIES LAB DRUG TESTING:POLICE/CHP 001.170.999.5328 415.00 1,944.70 75220 03/01/02 003817 BLUE RIDGE MEDICAL PARAMEDIC SQUAD SUPPLIES:FIRE 001.171.999.5311 36.00 36.00 75221 03/01/02 004866 BOY SCOUTS OF AMERICA COMM SVC FUNDING AWARD 001.101.999.5267 2~000.00 2~000.00 75222 03/01/02 004867 BOY SCOUTS OF AMERICA COMM SVC FUNDING AWARD 001.101.999.5267 2,000.00 2~000.00 75223 03/01/02 004868 BOY SCOUTS OF AMERICA COMM SVE FUNDING AWARD 001.101.999.5267 2,000.00 2,000.00 75224 03/01/02 000404 CALIF ASSN FOR LOCAL EC 22ND ANNUAL CONF:4/3-5:WOLNICK 001.111.999.5258 ~.00 7-/5.00 75225 03/01/02 004248 CALIF DEPT OF JUBTICE/A NEW HIRE FINGERPRINT BKGRND CK 001.150.999.5250 756.00 756.00 75226 03/01/02 004228 CAMERON WELDING SUPPLY RECREATION SUPPLIES: TCC 190.184.999.5301 33.10 33.10 75227 03/01/02 002534 CATERERS CAFE REFSHMNT:CITY MGR BUSINESS MTG 001.110.999.5260 43.83 43.83 75228 03/01/02 002710 CHAMPLAIN PLANNING PRES 1YR SUBSCRIPTION TO PCJ 001.161.999.5228 95.00 95.00 75229 03/01/02 003775 CHAPARRAL HIGH SCHOOL 01-02 COMM SVC FUNDING AWARD 001.101.999.5267 5,000.00 5,000.00 75230 03/01/02 004837 CHERRY VALLEY FEED/PET POLICE K-9 SUPPLIES 001.170.999.5294 64.62 64.62 75231 03/01/02 002058 CHRISTIAN YOUTH THEATER 01-02 COMM SVC FUNDING AWARD 001.101.999.5267 5,0OD.D0 5,000.00 75232 03/01/02 CHUDY, MYRNA REFUND:SEE.DEPOSIT:MS01-2579 190.2900 74.63 75232 03/01/02 CHUDYv MYRNA REFUND:SEE.DEPOSIT:MS01-2579 190.2900 25~37 75232 03/01/02 CHUDY, MYRNA REFUND:KITCHEN RENTAL 190.182.4990 34.00 134.00 VOUCHRE2 CITY OF TEMECULA PAGE 4 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75233 03/01/02 CHURCH OF RELIGIOUS SCI REF:SEC DEP MS01-2059 AT CRC 190.2900 100.00 100.00 75234 03/01/02 CLOSTER, BETH REFUND: MUSIC FOR TODDLERS 190.183.4982 79.00 79.00 75235 03/01/02 CLUB DEMONSTRATION SERV REFUND:SEC.DEPOSIT:MS02-0383 190.2900 100.00 100.00 75236 03/01/02 004405 COMMUNITY HEALTH CNARIT 004405 CHC 001.2120 87.01 75236 03/01/02 004405 COMMUNITY HEALTH CHARIT 004405 CHC 190.2120 42.90 75236 03/01/02 004405 COMMUNITY HEALTH CHARIT 004405 CHC 192.2120 .05 75236 03/01/02 004405 COMMUNITY HEALTH CHARIT 004405 CHC 193.2120 1.21 75236 03/01/02 004405 COMMUNITY HEALTH CHARIT 004405 CHC 194.2120 1.94 75236 03/01/02 004405 COMMUNITY NEALTH CHARIT 004405 CHC 330.2120 12.49 75236 03/01/02 004405 COMMUNITY HEALTH CHARIT 004405 CHC 340.2120 .90 146.50 75237 03/01/02 001193 COMP U S A IRC MISC COMPUTER SUPPLIES: I.S. 320.199.999.5221 161.84 75237 03/01/02 001193 CC~4P U S A INC MISC COMPUTER SUPPLIES: I.S. 320.199.999.5211 92.81 254.65 75238 03/01/02 002147 COMPLIMENTS COMPLAINTS ENTERTAINMENT:VOL.RECOGN:03/06 190.183.999.5374 325.00 325.00 75239 03/01/02 000442 COMPUTER ALERT SYSTEMS ALARM SYS MODIFICATION:SR CTR 210.190.163.5804 75.78 75.78 75240 03/01/02 001014 COUNTRY SIGNS & DESIGNS FACADE IMPROV PROG:CAVAZO, R. 280.199.813.5804 484.69 75240 03/01/02 001014 COUNTRY SIGNS & DESIGNS FACADE IMPROV PROG:HEMMATI, M. 280.199.813.5804 890.25 1~374.94 75241 03/01/02 003182 CUB SCOUT PACK # 338 01-02 COMM GVC FUNDING AWARD 001.101.999.5267 1,000.00 1,000.00 75242 03/01/02 004869 CUB SCOUT PACK 337 COMM SVC FUNDING AWARD 001.101.999.5267 1,000.00 1,000.00 75243 03/01/02 004870 CUB SCOUT PACK 367 COMM SVC FUNDING AWARD 001.101.999.5267 1,000.00 1~000.00 75244 03/01/02 002661 CUMMINS CAL PACIFIC INC REPAIR EMERGENCY GENERATOR 001.171.999.5215 500.00 75244 03/01/02 002661 CUMMINS CAL PACIFIC INC REPAIR EMERGENCY GENERATOR 001.171.999.5215 434.99 934.99 75245 03/01/02 004123 D L PHARES & ASSOCIATES RENTAL PMT:POLICE STOREFRONT 001.170.999.5229 3,263.66 3,263.66 75246 03/01/02 003272 DAISY WHEEL RIBBON COMP PLOTTER SUPPLIES: GIG 001.161.610.5220 134.88 134.88 75247 03/01/02 002413 DALEY & HEFT JAR 2002 LEGAL SERVICES 001.130.999.5246 10~098.91 10,098.91 75248 03/01/02 004450 DENNIS A HIBBERT PLUMSI PLUMBING SERVCS:FIRE STR 84 001.171.999.5212 630.84 630.84 75249 03/01/02 004222 DIAMONDBACK FIRE & RESC MOUNTING HRACKETS FOR STN 92 001.171.999.5242 404.06 404.06 75250 03/01/02 004294 DIVERSIFIED LANDSCAPE C FIRE STN 92 LANDSCAPING:PW0121 210.165.739.5804 5,722.76 75250 03/01/02 004294 DIVERSIFIED LANDSCAPE C RET:W/H PMT:STN 92:PW0121 210.2035 572.28- 75250 03/01/02 004294 DIVERSIFIED LANDSCAPE C LDSCP/IRRIGATION IMPR:STN 92 210.165.739.5804 1,920.00 75250 03/01/02 004294 DIVERSIFIED LANDSCAPE C RETENTION:LDSCP IMPR @ STR 92 210.2035 192.00- 6,878.48 75251 03/01/02 DROWN, MIKE REF:PERMIT B02-0198: B&S 001.2290 1.16 75251 03/01/02 DROWN, MIKE REF:PERMIT B02-0198: B&S 001.162.4200 15.00 75251 03/01/02 DROWN, MIKE REF:PERMIT B02-0198: B&S 001.162.4285 273.50 289.66 VOUCHRE2 CITY OF TEMECULA PACE 5 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75252 03/01/02 001380 E S I EMPLOYMENT SERVIC TEMP HELP W/E 02/08 RUSH 001.161.999.5118 2,203.17 75252 03/01/02 001380 E S I EMPLOYMENT SERVIC TEMP HELP W/E 02/BS/O2:HANSEN 001.164.604.5118 318.45 75252 03/01/02 001300 E S I EMPLOYMENT SERVIC TEMP HELP W/E 02/08/02:HANGER 001.161.999.5118 1,007.46 75252 03/01/02 001380 E S I EMPLOYMENT SERVIC TEMP HELP W/E 02/08/02:HANGER 001.120.999.5118 851.13 75252 03/01/02 001380 E S I EMPLOYMENT SERVIC TEMP HELP W/E 02/08 MCCOY 001.161.999.5118 2,607.20 75252 03/01/02 001380 E S I EMPLOYMENT SERVIC TEMP HELP W/E 02/00 ROSALES 001.171.999.5118 lf762.40 8,749,81 75253 03/01/02 003223 EDAW IRC JAN BIOLOGICAL SVCB:LG CANYON 001.164.601.5275 738.94 }~8.94 75254 03/01/02 003665 EMERITUS COMMUNICATIONS JAN LONG DISTANCE PHONE SVCS 320.199.999.5208 398.86 398.86 75255 03/01/02 ESTEPf CHRISTA REFUND:SEC DEP MS01-2632 190.2900 100.00 75255 03/01/02 ESTEP, CHRISTA ADDT'L ROOM HOURS 190.182.4990 85.00- 15.00 75256 03/01/02 002060 EUROPEAN DELI & CATERIN REFSHMNT:RORIPAUGH RANCH MTG 001.161.999.5260 35.45 35.45 75257 03/01/02 001056 EXCEL LANDSCAPE S-14 MIRADA REHABILITATION 193.180.999.5416 228.80 75257 03/01/02 001056 EXCEL LANDSCAPE REPLACE LDSCP:TUSCANY RIDGE 190.180.999.5212 225.00 75257 03/01/02 001056 EXCEL LANDSCAPE REPLACE PLANTS:TUSCANY RIDGE 190.100.999.5212 45.00 75257 03/01/02 001056 EXCEL LANDSCAPE REPLAEE PLANTS:TUSCANY RIDGE 190.180.999.5212 75.00 75257 03/01/02 001056 EXCEL LANDSCAPE INSTALL PLANTS:RIVERTON PARK 190.180.999.5212 375.00 75257 03/01/02 001056 EXCEL LANDSCAPE INSTALL LDSCP:BARCLAY ESTATES 193.180.999.5212 750.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS:NEIGHBORHOOD PK 190.180.999.5415 19,120.00 7525T 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS:SPORTS PARKS 190.180.999.5415 25,325.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS:MEDIANS 190.180.999.5415 2,425.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS: CRC 190.182.999.5415 1,444.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS: SR CENTER 190.181.999.5415 361.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS:C.HALL/MNTC FAC 340.199.701.5415 541.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS: TCC 190.184.999.5415 193.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDBCP SVCS: FIRE BTN 84 001.171.999.5212 400.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS:OLD TUN PRKLOTA 001.164.603.5415 250.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS:OLD TWN STRSCAP 001.164.603.5415 987.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS: MUSEUM 190.185.999.5415 285.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS:CHILD MUSEUM 190.188.999.5415 155.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS:SOUTH SLOPES 193.180.999.5415 25,556.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS: NORTH SLOPES 193.180.999.5415 14,778.00 75257 03/01/02 001056 EXCEL LANDSCAPE JAN LDSCP SVCS:OLD TWN PRKLOTB 001.164.603.5415 250.00 93,768.80 75258 03/01/02 004464 EXXONMOBIL CARD SERVICE FUEL EXPENSE FOR CITY VEHICLES 001.170.999.5262 36.52 75258 03/01/02 004464 EXXONMOBIL CARD SERVICE FUEL EXPENSE FOR CITY VEHICLES 001.110.999.5262 84.39 120.91 75259 03/01/02 000165 FEDERAL EXPRESS INC EXPRESS MAIL SERVICES 001.110.999.5230 37.58 75259 03/01/02 000165 FEDERAL EXPRESS INC EXPRESS MAIL SERVICES 190.180.999.5230 51.33 75259 03/01/02 000165 FEDERAL EXPRESS INC EXPRESS MAIL SERVICES 001.171.999.5230 29.09 75259 03/01/02 000165 FEDERAL EXPRESS INC EXPRESS MAIL SERVICES 001.140.999.5230 20.90 75259 03/01/02 0001653 FEDERAL EXPRESS IRC EXPRESS MAIL SERVICES 001.162.999.5230 45.58 75259 03/01/02 000165 FEDERAL EXPRESS IRC EXPRESS MAIL SERVICES 001.111.999.5230 15.26 75259 03/01/02 000165 FEDERAL EXPRESS INC EXPRESS MAIL SERVICES 001.140.999.5230 1~.94 75259 03/01/02 000165 FEDERAL EXPRESS INC EXPRESS MAIL SERVICES 320.199.999.5230 9.02 75259 03/01/02 000165 FEDERAL EXPRESS IRC EXPRESS MAIL SERVICES 001.150.999.5230 12.05 75259 03/01/02 000165 FEDERAL EXPRESS IRC EXPRESS MAIL SERVICES 190.180.999.5230 14.03 ¥OUCHRE2 CITY OF TEMECULA PAGE 6 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75259 03/01/02 000165 FEDERAL EXPRESS IBC EXPRESS MAIL SERVICES 001.162.999.5230 19.95 75259 03/01/02 000165 FEDERAL EXPRESS IBC EXPRESS MAIL SERVICES 001.111.999.5230 10.35 439.08 75260 03/01/02 003347 FIRST BANKCARD CENTER XX-0902 O~GRADY:LEAGUE OF CITI 001.110.999.5258 450.00 450.00 75261 03/01/02 000170 FRANKLIN QUEST COMPANY DAY TIMER SUPPLIES:PLANNING 001.161.999.5220 127.36 127.36 75262 03/01/02 004178 FREEDOM SIGNS********** FACADE IMPROV PROG:JOHNSON, D. 280.199.813.5804 1,840.94 1,840.94 75263 03/01/02 004854 FURNITURE PLUS FURNISHINGS FOR SR CENTER 190.181.999.5610 1,260.00 75263 03/01/02 004854 FURNITURE PLUS FREIGHT 190.181.999.5610 35.00 75263 03/01/02 004854 FURNITURE PLUS SALES TAX 190.181.999.5610 97.65 1~392.65 75264 03/01/02 000177 GLENNIES OFFICE PRODUCT OFFICE SUPPLIES: MUSEUM 190.185.999.5220 101.76 75264 03/01/02 000177 GLENNIES OFFICE PRODUCT OFFICE SUPPLIES: TCSD 190.180.999.5220 249.71 75264 03/01/02 000177 GLENNIES OFFICE PRODUCT OFFICE SUPPLIES: TCSD 190.180.999.5220 225.62 75264 03/01/02 00017-/ GLENNIES OFFICE PRODUCT OFFICE SUPPLIES: CRC 190.182.999.5220 175.82 752.91 75265 03/01/02 004876 GOSPEL LIGHT BAPTIST COMMUNITY SVC FUNDING 001.101.999.5267 2,500.00 2,500.00 75266 03/01/02 004607 GRACE BUILDING MAINTENA JAN CUSTODIAL SVC:PICNIC SHLTR 190.180.999.5250 3~535.00 75266 03/01/02 004607 GRACE BUILDING MAINTENA JAN CUSTODIAL SVC:PICNIC SHLTR 001.164.603.5250 195.00 3,730.00 75267 03/01/02 000186 HANKS HARDWARE INC MISC HARDWARE SUPPLIES:STN 84 001.171.999.5242 209.31 209.31 75268 03/01/02 HERRERA~ PETER REIMB:POP ANNUAL GONF:POLICE 001.170.999.5261 88.64 88.64 75269 03/01/02 000194 I C M A RETIREMENT THUS 000194 DEF COMP 001.2080 4,298.87 75269 03/01/02 000194 I C M A RETIREMENT THUS 000194 DEF COMP 165.2080 523.99 75269 03/01/02 000194 I C M A RETIREMENT TRUS 000194 DEF COMP 190.2080 515.40 75269 03/01/02 000194 I C M A RETIREMENT TRUS 000194 DEF COMP 194.2080 16.51 75269 03/01/02 000194 I C M A RETIREMENT THUS 000194 DEF COMP 280.2080 174.65 75269 03/01/02 000194 I C M A RETIREMENT THUS 000194 DEF COMP 300.2080 50.00 5,579.42 75270 03/01/02 004877 IN THE NEWS "POLICE DEPT" PLAQUE 001.170.999.5250 184.00 75270 03/01/02 0048~ IN THE NEWS ADD~L "POLICE DEPT" PLAQUE 001o170.999.5250 ~84.00 368.00 75271 03/01/02 001123 INDUSTRIAL DISTRIBUTION MISC MAINT SUPPLIES: PUB WORKS 001.164.601.5218 495.55 75271 03/01/02 001123 INDUSTRIAL DISTRIBUTION MISC MAINT SUPPLIES: PUB WORKS 001.164.601.5218 34.89 530.44 75272 03/01/02 001351 INLAND EMPIRE ECONOMIC TECHNET FORUM:O'GRADY:02/07/02 001.111.999.5260 30.00 30.00 7527'3 03/01/02 0013~ INLAND EMPIRE MANAGERS MEMBERSNIP:S.NELSON/J.O'GRADY 001.110.999.5226 25.00 25.00 75274 03/01/02 003998 INLAND VALLEY FILIPINO 01-02 COMM SVC FUNDING AWARD 001.101.999.5267 2,500.00 2,500.00 75275 03/01/02 004079 JENKENS & GILCHRIST HR GENERAL LEGAL SERVICES 001.130.999.5247 816.00 75275 03/01/02 004079 JENKENS & GILCRRIST HR LEGAL SERVICES 001.130.999.5247 432.00 1,248.00 75276 03/01/02 KEETON CONSTRUCTION CO. REF:OVERPAID PERMIT S01-1262 001.162.4285 628.85 628.85 VOUCHRE2 CITY OF TEMECULA PAGE 7 03/01/02 09:57 VOtJCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CBECK CNECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMO~JNT AMOUNT 75277 03/01/02 002424 KELLEY DISPLAY INg HOT AIR BALLOON BANNERS MNTC 001.111.999.5271 396.30 75277 03/01/02 002424 KELLEY DISPLAY IRC AMERICAN FLAG BANNERS MNTC 001.111.999.5271 34.16 430.46 75278 03/01/02 003986 KEVIN COZAD & ASSOCIATE JAN 2002 PROF SVCS: DIAZ ROAD 210.165.632.5802 7,410.00 7,410.00 75279 03/01/02 KIM, HAEJIN ELAINE REFUND: MUSIC-LITTLE MOZARTS 190.183.4982 39.09 39.09 75280 03/01/02 004413 KLAMATH BAY CRIME PREVENTION SUPPLIES:PD 001.170.999.5292 355.25 75280 03/01/02 004413 KLAMATH 8AY CRIME PREVENTION SUPPLIES 001.170.999.5292 305.57 75280 03/01/02 004413 KLAMATH BAY CRIME PREVENTION SUPPLIES:PD 001.170.999.5292 745.14 1,405.96 75281 03/01/02 LAMBS FELLOWSHIP OF TEM BEF:SEC DEP MS01-2141 AT CRC 190~2900 64.00 75281 03/01/02 LAMBS FELLOWBBIP OF TEM ADDT'L BOURS 190.182.4990 20.00- 44.00 75282 03/01/02 000210 LEAGUE OF CALIF CITIES CALIF CITIES:2002 MEMBER DUES 001.100.999.5226 14,823.00 14,823.00 75283 03/01/02 004412 LEANDER, KERRY G. TCSD INSTRUCTOR EARNINGS 190.183.999.5330 204.00 75283 03/01/02 004412 LEANDER, KERRY D. TCSD INSTRUCTOR EARNINGS 190.183.999.5330 204.00 75283 03/01/02 004412 LEANDER, KERRY D. TCSD INSTRUCTOR EARNINGS 190.183.999.5330 72.00 75283 03/01/02 004412 LEANDER, KERRY D. TCBD INSTRUCTOR EARNINGS 190.183.999.5330 84.00 564.00 75284 03/01/02 003782 MAIN STREET SIGNS MISC SIGNS/SUPPLIES:PW MAINT 001.164.601.5244 2,458.86 75284 03/01/02 003782 MAIN STREET SIGNS MISC. SIGNS FOR PUBLIC WORKS 001.164.601.5244 377.13 2,835.99 75285 03/01/02 004141 MAINTEX IRC SR CTR CUSTODIAL SUPPLIES 190.181.999.5212 167.29 75285 03/01/02 004141 MAINTEX IRC BR CTR CUSTODIAL SUPPLIES 190.181.999.5212 41.26 75285 03/01/02 004141 MAINTEX INC SR CTR CUSTOOIAL SUPPLIES 190.181.999.5212 116.79 75285 03/01/02 004141 MAINTEX INC MA1NT FAC CUSTODIAL SUPPLIES 340.199.702.5212 101.22 75285 03/01/02 004141 MAINTEX INC CITY HALL CUSTODIAL SUPPLIES 340.199.701.5212 171.37 597.93 75286 03/01/02 004068 MANALILI, AILEEN TCSD INSTRUCTOR EARNINGS 190.183.999.5330 462.00 75286 03/01/02 004068 MANALILI, AILEEN ~CSD INSTRUCTOR EARNINGS 190.183.999.5330 42.00 504.00 75287 03/01/02 002664 MAR CO INDUSTRIES INC FACTORY CAT FLOOR MACBIRE MNTC 190.180.999.5212 225.85 75287 03/01/02 002664 MAR CO INDUSTRIES IRC PREV MNTC CLARK FLOOR MACHINE 190.184.999.5212 65.00 290.85 75288 03/01/02 MARGARITA MEDICAL CONDO REFURD:PERMIT FEES:B01-2086-91 001.2280 88.44 75288 03/01/02 MARGARITA MEDICAL CORDO REFUND:PERMIT FEES:B01-2086-91 001.162.4200 1,414.49 75288 03/01/52 MARGARITA MEDICAL CONDO REFUND:PERMIT FEES:B01-2086-91 001.162.4285 1,552.50 3,055.43 75289 03/01/02 004170 MATRIX IMAGING PRODUCTS SCANNER SUPPLIES: CITY CLERK 001.120.999.5277 867.76 867.76 75290 03/01/02 002693 MATROSo ANDREA TCSD INSTRUCTOR EARNINGS 190.183.999.5330 268.80 268.80 75E91 03/01/02 000586 MATTHEW BENDER & COMPAN WEBSITE ANNUAL STORAGE FEE 320.199.999.5211 500.00 752~1 03/01/02 000586 MATTHEW BENDER & COMPAN SALES TAX 320.199.999.5211 37.50 537.50 75292 03/01/02 000220 MAURICE PRINTERS INC APPLICATION FOR EMPLOYMENT 001.150.999.5222 502.00 75292 03/01/02 000220 MAURICE PRINTERS IRC SALES TAX 001.150.999.5222 38.91 540.91 75293 03/01/02 003448 MELOOYS AD ~ORKS REIMB FOR MARKETING EXPENSES 280.199.999.5250 175.00 175.00 VOUCHRE2 CITY OF TEMECULA PAGE 0 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VODCBER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75294 03/01/02 004208 MILANOS REFRESNMNTS:OP BUDGET MTG 2/25 001.140.999.5260 136.90 136.90 75295 03/01/02 001384 MINUTEMAN PRESS BUS CARDS: L. WESTHAVER 001.162.999.5222 42.83 75295 03/01/02 001384 MINUTEMAN PRESS BUS CARDS: J.V./R.R./R,P. 001.161.999.5222 119.25 75295 03/01/02 001384 MINUTEMAN PRESS SALES TAX 001.161.999.5222 9.24 75295 03/01/02 001384 MINUTEMAN PRESS BUS.CARDS:TC/BC/DA/RJ/CJ/GA/MD 001.163.999.5222 198.75 75295 03/01/02 001384 MINUTEMAN PRESS BUS.CARDS:TC/SC/DA/RJ/CJ/GA/MD 001.164.602.5222 39.~5 75295 03/01/02 001384 MINUTEMAN PRESS BUS.CARDS:TC/SC/DA/RJ/CJ/GA/MD 001.165.999.5222 39.75 75295 03/01/02 001384 MINUTEMAN PRESS SALES TAX 001.163.999.5222 15.40 75295 03/01/02 00138/* MINUTEMAN PRESS SALES TAX 001.164.602.5222 3.08 75295 03/01/02 001384 MINUTEMAN PRESS SALES TAX 001.165.999.5222 3.07 75295 03/01/02 00138/* MINUTEMAN PRESS SALES TAX 001.165.999.5222 .01 75295 03/01/02 001384 MINUTEMAN PRESS BUSINESS CARDS: G. TNURSTON 190.186.999.5250 39.75 75295 03/01/02 001384 MINUTEMAN PRESS SALES TAX 190.18~.999.5250 3.08 513.96 ?5296 03/01/02 001868 MIYAMOTO~JURKOSKY, SUSA TCSD INSTRUCTOR EARNINGS 190.183.999.5330 468.00 468.00 75297 03/01/02 001892 MOBILE MOOULAR FEB MODULAR RENTAL:BTM 92 001.171.999.5250 77?.95 777.95 75298 03/01/02 000883 MONTELEONE EXCAVATING CLEAR DEBRIS'VARIOUS CHANNELS 001.1~.601.5401 4,990.00 4,990.00 ?5299 03/01/02 000437 MORELAND & ASSOCIATES AUDIT SERVICES: CITY 001.140.999.5248 2,016.75 75299 03/01/02 000437 MORELAND & ASSOCIATES ANNUAL AUDIT FY 2000-01 (RDA) 165.199.999.5248 190.00 75299 03/01/02 000437 MORELAND & ASSOCIATES ANNUAL AUDIT FY 2000-01 (RDA) 280.199.999.5248 190.00 2,396.75 75300 03/01/02 004871 MUSICIANS WORKSHOP FY 01/02 COMM BVC FUNDING AWRD 001.101.999.5267 5tO00.O0 5,000.00 75301 03/01/02 NARANJO, LARRY REFUND:OIL PAINTING 190.183.4982 40.00 40.00 75302 03/01/02 NATIONAL BUSINESSWOMEN' COMM.SKILLS CF:3/14/O2:B.SMITN 190.180.999.5261 139.00 139.00 75303 03/01/02 004191 NORTH COUNTY TIMES-PMT 02/27-08/25/02 SUBSCRIPTION 001.161.999.5228 61.00 61.00 75304 03/01/02 003382 OtGRADY, JAMES B, REIMB:LEAGUE/MGRtS MTG:2/13-15 001.110.999.5258 78.54 78.54 75305 03/01/02 002100 OBJECT RADIANCE INC TCBD INSTRUCTOR EARNINGS 190.183.999.5330 1~913.60 1~913.60 75306 03/01/02 003964 OFFICE DEPOT BUSINESS B OFFICE SUPPLIES FOR FINANCE 001.140.999.5220 147.77 75306 03/01/02 003964 OFFICE DEPOT BUSINESS S OFFICE SUPPLIES: PLANNING 001.161.999.5220 145.26 75306 03/01/02 00396/* OFFICE DEPOT BUSINESS S OFFICE SUPPLIES FOR FINANCE 001.140.999.5220 3.20 296.23 75307 03/01/02 002105 OLD TOWN TIRE & SERVICE CITY VEHICLE REPAIRS & MAINT 001.161.999.5214 20.00 75307 03/01/02 002105 OLD TOWN TIRE & SERVICE CITY VEHICLE REPAIRS & MAINT 001.164.601.5214 538.48 75307 03/01/02 002105 OLD TOWN TIRE & SERVICE CITY VEHICLE REPAIRS & MAINT 001.164.601.5214 99.57 75307 03/01/02 002105 OLD TOWN TIRE & SERVICE CITY VEHICLE REPAIRS & MAINT 001.164.601.5214 339.62 75307 03/01/02 002105 OLD TOWN TIRE & SERVICE CITY VEHICLE REPAIRS & MAINT 001.164.601.5214 29.52 75307 03/01/02 002105 OLD TO~N TIRE & SERVICE CITY VEHICLE REPAIRS & MAINT 001.164.601.5214 341.14 75307 03/01/02 002105 OLD TOWN TIRE & SERVICE CITY VEHICLE REPAIRS & MAINT 001.161.999.5214 71.95 1,440.28 75308 03/01/02 004475 P A S SYSTEMS INTERNATI FLASHLIGHT BATTERY/BULBS 001.170.999.5215 63.50 63.50 VOUCHRE2 CITY OF TEMECULA PAGE 9 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75309 03/01/02 003762 P M X MEDICAL PARAMEDIC SQUAD SUPPLIES 001.171.999.5311 28.57 75309 03/01/02 003762 P M X MEDICAL PARAMEDIC SQUAD SUPPLIES 001.171.999.5311 163.77 192.34 75310 03/01/02 PACIFIC FIRE PROTECTION REFUND:PLN CK/FEES:B01-3267/68 001.171.4036 43.80 75310 03/01/02 PACIFIC FIRE PROTECTION REFUND:PLN CK/FEES:B01-3267/68 001.171.4037 288.00 331.80 75311 03/01/02 004074 PARTY CITY OF TEMECULA TCSD RECREATION SUPPLIES 190~183.999.5370 24.11 75311 03/01/02 004074 PARTY CITY OF TEMECULA TCSD RECREATION SUPPLIES 190.183.999.5370 12.01 75311 03/01/02 004074 PARTY CITY OF TEMECULA RECREATION SUPPLIES FOR MPSC 190.181.999.5301 95.66 131.78 75312 03/01/02 001958 PERS LONG TERM CARE PRO 001958 PERS L-T 001.2122 83.99 83.99 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.111.999.5270 13.64 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.111.999.5270 26.94 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 190.180.999.5261 35.00 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 190.184.999.5301 26.94 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 190.185.999.5250 8.80 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.161.610.5260 3.00 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.110.999.5260 10.76 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.164.601.5260 16.25 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.161.999.5260 41.58 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.111.999.5260 25.00 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 190.183.999.5374 8.14 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.162.999.5260 29.47 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.140.999.5250 3.62 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.100.999.5260 19.52 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.170.999.5242 4.29 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.170.999.5250 26.72 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.170.999.5242 7.39 75313 03/01/02 000249 PETTY CASH PETTY CASH REIMBURSEMENT 001.170.999.5262 7.00 314.06 75314 03/01/02 PRESCRIBING REFERENCE~ ANNUAL SUBSCRIPTION:FIRE DEPT 001.171.999.5228 49.00 49.00 75315 03/01/02 000254 PRESS ENTERPRISE COMPAH LEGAL NOTICE ADVERTISING:CCLK 001.120.999.5256 199.00 199.00 75316 03/01/02 002776 PRIME MATRIX INC JAN CELLULAR SVCS:SR VAN 190.180.999.5208 49.30 75316 03/01/02 002776 PRIME MATRIX INC JAN CELLULAR SVCS:EITY VAN 190.180.999.5208 32.52 81.82 75317 03/01/02 003493 PRO-CRAFT OVERHEAD DOOR RES IMPRV PRGM: KOSALLA 165.199.813.5804 1,020.00 1,020.00 75318 03/01/02 PROHOFSKY, MARVIN REFUND:EX-MARCH FIELD AIR MUS 190.183.4982 13.00 13.00 75319 03/01/02 001416 QUICK CRETE PRODUCTS IN INSTALL 6 CONCRETE TREE GRATES 190.180.999.5212 1,770.00 75319 03/01/02 001416 QUICK CRETE PRODUCTS IN INSTALL 4 CONCRETE BENCHES 190.180.999.5212 700.00 75319 03/01/02 001416 QUICK CRETE PRODUCTS IN SALES TAX 190.180.999.5212 191.43 2,661.43 75320 03/01/02 004792 R H A LANDSCAPE ARCHITE LAND ARCH/PLAN SVCS:VAIL RNCH 210.190.182.5802 1,308.06 1,308.06 75321 03/01/02 004863 R M S FOUNDATION INC DEPOSIT:MGMT RETREAT:3/28-29 001.150.999.5260 1,000.00 1,000.00 75322 03/01/02 000262 RANCHO CALIF WATER DIST JAN 01-08~38009-0 STN 92 001.171.999.5240 60.14 VOUCHRE2 CiTY OF TEMECULA PAGE 10 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR iTEM ACCOUNT iTEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75322 03/01/02 000262 RANCHO CALIF WATER DIST JAN 01-02-98000-0 STN 84 001.171.999.5240 12.03 75322 03/01/02 000262 RANCHO CALIF WATER DIST JAN 01-02-98010-0 STN 84 001.171.999.5240 192.73 75322 03/01/02 000262 RANCHO CALIF WATER DIST VARIOUS WATER METERS 190.180.999.5240 2,677.70 75322 03/01/02 000262 RANCHO CALIF WATER DIST VARIOUS WATER METERS 193.180.999.5240 2,236.7-3 5,179.33 75323 03/01/02 000907 RANCHO CAR WASH CITY VEHICLE DETAILING 001.162.999.5214 32.00 75323 03/01/02 000907 RANCHO CAR WASH CITY VEHICLE DETAILING 001.165.999.5214 8.00 75323 03/01/02 000907 RANCHO CAR WASH CITY VEHICLE DETAILING & GAS 001.110.999.5214 40.00 75323 03/01/02 000907 RANCHO CAR WASH CITY VEHICLE DETAILING & GAS 001.110.999.5263 61.30 75323 03/01/02 000907 RANCHO GAR WASH CITY VEHICLE DETAILING 001.163.999.5214 ~3.76 75323 03/01/02 000907 RANCHO CAR WASH CITY VEHICLE DETAILING 001.161.999.5214 8.00 75323 03/01/02 000907 RANCHO CAR WASH CITY VENICLE DETAiliNG 001.164.604.5214 8.00 75323 03/01/02 000907 RANCHO CAR WASH CITY VEHICLE DETAiliNG 001.164.601.5214 16.00 75323 03/01/02 000907 RANCHO GAR WASH CITY VEHICLE DETAiliNG 190.180.999.5214 24.00 231.06 75324 03/01/02 RANCHO GLENOAKS H.O.A. REFUND:BEC.DEPOSIT:MB01-2254 190.2900 100.00 100.00 75325 03/01/02 000947 RANCHO REPROGRAPHICS DUPL BLUEPRINTB:PALA RD iMPRV 210.165.668.5802 12.09 75325 03/01/02 000947 RANGHO REPROGRAPNICS DUPL BLUEPRINTS:MARG RD WIOEN 210.165.706.5804 56.08 75325 03/01/02 000947 RANCHO REPROGRAPNICS DUPL BLUEPRINTS:MEADOWS PRKWY 190.180.999.5222 93.97 162.14 75326 03/01/02 RANCHO RUNNERS DELIVERY CHARGE 001.150.999.5230 67.50 67.50 75327 03/01/02 004843 REGAL PLASTICS 3/16 X4X8 GRAPHIC ARTS BOARD 190.185.999.5250 460.50 75327 03/01/02 00484/*3 REGAL PLASTICS CUT FEE - CUT TO 24 X 36 190.185.999.5250 15.00 75327 03/01/02 004843 REGAL PLASTICS FREIGHT 190.185.999.5250 50.00 75327 03/01/02 004843 REGAL PLASTICS SALES TAX 190.185.999.5250 38.11 563.61 75328 03/01/02 004584 REGENCY LIGBTING CRC ELECTRICAL SUPPLIES 190.182.999.5212 51.29 75328 03/01/02 004584 REGENCY LIGHTING CRC ELECTRICAL SUPPLIES 190.182.999.5212 224.66 75328 03/01/02 004584 REGENCY LIGHTING MINI LAMPS FOR GYM SCOREBOARD 190.182.999.5212 106.46 75328 03/01/02 004584 REGENCY LIGHTING CRC ELECTRICAL SUPPLIES 190.182.999.5212 53.79 75328 03/01/02 004584/* REGENCY LIGHTING CRC ELECTRICAL SUPPLIES 190.182.999.5212 40.51 75328 03/01/02 004584 REGENCY LIGHTING RETURNED CRC ELECT SUPPLIES 190.182.999.5212 96.65- 380.06 75329 03/01/02 003591 RENES COMMERCIAL MANAGE CITYWIDE R-O-W DEBRIS REMOVAL 001.164.601.5402 5,000.00 5,000.00 75330 03/01/02 002412 RICHARDS WATSON & GERSH FEB 2002 LEC~L SERVICES 001.130.999.5246 854.93 854.93 75331 03/01/02 000353 RIVERSIDE CO AUDITOR DEC 2001PRK GIT ASSESSMENTS 001;2260 1,486.50 75331 03/01/02 000353 RIVERSIDE CO AUDITOR DEC 2001PRK CIT ASSESSMENTS 001.2265 786.00 2,272.50 75332 03/01/02 000418 RIVERSIDE CO CLERK & RE JAN APERTURE CARD DUPLICATES 001.163.999.5250 104.95 104.95 75333 03/01/02 000418 RIVERSIDE CO CLERK & RE NTC EXEMPTION FILE FEE:6TH ST. 165.199.999.5250 64.00 64.00 75334 0~/01/02 001592 RiVERSiDE CO INFO TECHN JAN EMERG. RADIO RENTAL:P.D. 001.170.999.5238 282.75 282.75 75335 03/01/02 003001 ROSS FENCE COMPANY RES IMPRV PRGM: GRiFFiN 165.199.813.5804 1,886.00 1,886.00 75336 03/01/02 RYLE, SHEILA HAVENS REFUND:BEC.DEPOSIT:MS01-3263 190.2900 100.00 100.00 VOUCNRE2 CITY OF TEMECULA PAGE 11 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75337 03/01/02 004598 S T K ARCHITECTURE INC JAN DSGN SVCS:WOLF CREEK STN 210.165.7'53.5802 2,205.00 2,205.00 75338 03/01/02 SAITES~ SALLY REFUND:GYMNASTIC$-DYNOMITES 190.183.4982 49.00 49.00 75339 03/01/02 000278 BAN DIEGO UNION TRIOUNE JAN DISPLAY AD(B): HUMAN RES 001.150.999.5254 1~101.91 75339 03/01/02 000278 BAN DIEGO UNION TRIBUNE JAN DISPLAY AD(S): HUMAN RES 001.150.999.5254 236.19 1,338.10 75340 03/01/02 004872 SANTA MARGARITA WATERSH FY 01/02 COMM SVC FUNDING AWBD 001.101.999.5267 2~500.00 2,500.00 75341 03/01/02 004562 SCHIRMER ENGINEERING CO PLAN CHECK SERVICES:FIRE DEPT 001.171.999.5250 2,665.00 2,665.00 75342 03/01/02 004814 SIMON ~ONG ENGINEERING OCT-JAN DSGN SVCS:BARRIER RAIL 210.165.722.5802 2,595.28 2,595.28 75343 03/01/02 000645 SMART & FINAL INC RECREATION SUPPLIES FOR MPSC 190.181.999.5301 57.64 75343 03/01/02 0006/+5 SMART & FINAL INC TCSD SPECIAL EVENT SUPPLIES 190.183.999.5374 29.06 75343 03/01/02 000645 SMART & FINAL INC SPECIAL EVENT SUPPLIES 190.183.999.5374 26.73 113.43 75344 03/01/02 000537 SO CALIF EDISON FEB 2-22-891-0550 VARIOUS MTRS 193.180.999.5240 1,547.70 75344 03/01/02 000537 SO CALIF EDISON FEB 2-22-891-0550 VARIOUS MTRS 190.180.999.5240 86.59 75344 03/01/02 000537 SO CALIF EDISON FEB 2-21-981-4720 HWY 79 001.165.999.5250 40.43 75344 03/01/02 000537 SO CALIF EDISON FEB 2-21-981-4720 BUY 79 001.1990 24.53 75344 03/01/02 000537 SO CAL1F EDISON FEB 2-23-365-5992 OVERLAND TER 001.171.999.5240 254.37 75344 03/01/02 000537 SO CALIF EDISON FEB 2-19-999-9442 VARIOUS MTR$ 190.180.999.5319 901.63 2,855.25 75345 03/01/02 000519 SOUTH COUNTY PEST CONTR P.D. CABOOSE PEST CONTROL SVCS 001.170.999.5250 29.00 75345 03/01/02 000519 SOUTN COUNTY PEST CONTR TCC PEST CONTROL SVCB 190.184.999.5250 36.00 75345 03/01/02 000519 SOUTH COUNTY PEST CONTR SR CTR PEST CONTROL SVCS 190.181.999.5250 29.00 94.00 75346 03/01/02 003467 SPECTRUM POOL PRODUCTS EXTENSION S HOOK - 14" 190.186.999.5242 114.00 75346 03/01/02 003467 SPECTRUM POOL PRODUCTS FREIGHT 190.186.999.5242 9.33 123.33 75347 03/01/02 002366 STEAM SUPERIOR CARPET C CITY HALL CARPET CLEANING 340.199.701.5212 1,800.0D 75347 03/01/02 002366 STEAM SUPERIOR CARPET C REPAIR CARPET IN GIB ROOM 340.199.701.5212 65.00 75347 03/01/02 002366 STEAM SUPERIOR CARPET C CRC GYM ENTRY REPLACE CARPET 190.182.999.5212 160.00 2,025.00 75348 03/01/02 001546 STRAIGHT LINE GLASS INC RES IMPRV PRGM: GRIFFIN 165.199.813.5804 156.38 156.38 75349 03/01/02 000574 SUPERTONER HP PRINTER SUPPLIES 320.199.999.5221 70.95 70.95 75350 03/01/02 000305 TARGET STORE HIGH HOPES RECREATION SUPPLIES 190.183.999.53~ 72.80 75350 03/01/02 000305 TARGET STORE HIGH HOPES RECREATION SUPPLIES 190.183.999.5373 103.87 ~350 03/01/02 000305 TARGET STORE SPECIAL EVENTS BEC SUPPLIES 190.183.999.5370 56.72 75350 03/01/02 000305 TARGET STORE OFFICE SUPPLIES FOR PW 001.163.999.5220 88.25 75350 03/01/02 000305 TARGET STORE OFFICE SUPPLIES FOR PW 001.165.999.5220 63.03 75350 03/01/02 000305 TARGET STORE OFFICE SUPPLIES FOR PW 001.164.604.5220 75.64 460.31 75351 03/01/02 003677 TEMECULA MOTORSPORTS LL MOTORCYCLE REPAIR/MAINT:TEM PD 001.170.999.5214 1,783.38 75351 03/01/02 003677 TEMECULA MOTORSPORTS LL MOTORCYCLE REPAIR/MAINT:TEM PD 001.170.999.5214 184.34 75351 03/01/02 003677 TEMECULA MOTORSPORTS LL MOTORCYCLE REPAIR/MAINT:TEM PD 001.170.999.5214 44.51 75351 03/01/02 003677 TEMECULA MOTORSPORTS LL MOTORCYCLE REPAIR/MAINT:TEM PD 001.170.999.5214 368.38 75351 03/01/02 003677 TEMECULA MOTORSPORTS LL MOTORCYCLE REPAIR/MAINT:TEM PD 001.170.999.5214 336.18 VOUCHRE2 CITY OF TEMECULA PAGE 12 03/01/02 09:57 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75351 03/01/02 003677 TEMECULA MOTORSPORTS LL MOTORCYCLE REPAIR/MAINT:TEM PD 001.170.999.5214 1,947.33 75351 03/01/02 003677 TEMECULA MOTORBPORTS LL MOTORCYCLE REPAIR/MAINT:TEM PD 001.170.999.5214 288.82 4,952.94 75352 03/01/02 000307 TEMECULA TROPHY COMPANY EE RECOGNITION AWARD:G.WEISNER 001.170.999.5250 28.55 75352 03/01/02 000307 TEMECULA TROPHY COMPANY NAMEPLATES:MIN.CLERK/O.H./D.H. 001.161.999.5222 23.71 75352 03/01/02 000307 TEMECULA TROPNY COMPANY NAMEPLATES:JM/SL/TE/DC/GT 001.164.602.5222 7.01 75352 03/01/02 000307 TEMECULA TROPHY COMPANY NAMEPLATES:JM/SL/TE/DC/GT 001.120.999.5222 40.39 75352 03/01/02 000307 TEMECULA TROPHY COMPANY NAMEPLATES:JM/SL/TE/DC/GT 190.180.999.5222 7.01 75352 03/01/02 000307 TEMECULA TROPNY COMPANY NAMETAG: M. WEDEL 001.164.602.5222 7.00 75352 03/01/02 000307 TEMECULA TROPNY COMPANY NAMEPLATE: M. WEDEL 001.164.602.5222 8.08 75352 03/01/02 000307 TEMECULA TROPHY COMPANY NAMETAG: G. THURSTON 190.186.999.5250 7.01 75352 03/01/02 000307 TEMECULA TROPHY COMPANY NAMEPLATE: M. HAGGAR 001.100.999.5222 8.08 75352 03/01/02 000307 TEMEOULA TROPHY COMPANY BILLING ERROR INV# 90247 001.120.999.5222 6.46 143.30 75353 03/01/02 003519 TEMECULA VALLEY ART LEA FY 01/02 COMM SVC FUNDING AWRD 001.101.999.5267 1,000.00 1,000.00 75354 03/01/02 003985 TEMECULA VALLEY COMPUTE FY 01/02 COMM SVC FUNDING AWRD 001.101.999.5267 500.00 500.00 75355 03/01/02 000311 TEMEOULA VALLEY NIGN SC FY 01/02 COMM SVC FUNDING AWRD 001.101.999.5267 5,000.00 5,000.00 75356 03/01/32 004873 TEMECULA VALLEY NISTORI FY 01/02 COMM SVC FUNDING AWRD 001.101.999.5267 1,500.00 1,500.00 75357 03/01/02 004874 TEMECULA VALLEY NATIONA FY 01/02 COMM SVC FUNDING AWRD 001.101.999.5267 2,000.00 2,000.00 75358 03/01/02 004274 TEMECULA VALLEY SECURIT MAINT FAC REKEY LOCKS 340.199.702.5219 110.40 75358 03/01/02 004274 TEMECULA VALLEY SECURIT TCC LOCKSMITH SERVICES 190.184.999.5212 59.00 169.40 75359 03/01/02 004875 TEMECULA VALLEY TIME MA FY 01/02 COMM SVC FUNDING AWRD 001.101.999.5267 2,500.00 2,500.00 75360 03/01/02 004477 TEMECULA VALLEY WOMANS FY 01/02 COMM SVC FUNDING AWRD 001.101.999.5267 5,000.00 5,000.00 75361 03/01/02 003598 TEMECULA VINTAGE SINGER FY 01/02 COMM SVC FUNDING AWRD 001.101.999.5267 1,000.00 1~000.00 75362 03/01/02 001065 U S C M WEST (DEF COMP) 001065 DEF COMP 001.2080 10,799.52 75362 03/01/02 001065 U S C M WEST (DEF COMP) 001065 OEF COMP 190.2080 2,028.86 75362 03/01/02 001065 U S C M WEST (DEF COMP) 001065 DEF COMP 192.2080 2.50 75362 03/01/02 001065 U S C M WEST (DEF COMP) 001065 DEF COMP 193.2080 118.49 75362 03/01/02 001065 U S C M WEST (DEF COMP) 001065 DEF COMP 194.2080 29.52 75362 03/01/02 001065 U S C M WEST (DEF COMP) 001065 DEF COMP 300.2080 88.54 75362 03/01/02 001065 U S C M WEST (DEF COMP) 001065 DEF COMP 320.2080 1~270.85 75362 03/01/02 001065 U B C M WEST (DEF COMP) 001065 DEF COMP 340.2080 145.90 14,484.18 75363 03/01/02 000389 U B C M WEST (OBRA) 000389 PT RETIR 001.2160 597.96 75363 03/01/02 000389 U S C M WEST (OBRA) 000389 PT RETIR 165.2160 96.32 75363 03/01/02 000389 U S C M WEST (OBRA) 000389 PT RETIR 190.2160 943.86 75363 03/01/02 000389 U S C M WEST (OBRA) 000389 PT RETIR 193.2160 17.20 75363 03/01/02 000389 U S C M WEST (OBRA) 000389 PT RETIR 280.2160 28.14 75363 03/01/02 000389 U S C M WEST (OBRA) 000389 PT RETIR 320.2160 31.88 75363 03/01/02 000389 U S C M WEST (OBRA) 000309 PT RETIR 330.2160 49.70 75363 03/01/02 000389 U S C M WEST (OBRA) 000389 PT RETIR 340.2160 31.66 1,796.72 VOUCNRE2 CITY OF TEMECULA PAGE 13 03/01/02 09:57 VOUCNER/CNECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NAME DESCRIPTION NUMBER AMOUNT AMOUNT 75364 03/01/02 002492 U S TOY COMPANY INC STONEWALL BACKGROUND PROP 190.183.999.5374 48.00 75364 03/01/02 002492 U S TOY COMPANY INC KING SWORDS 190.183.999.5374 10.00 75364 03/01/02 002492 U S TOY COMPANY INC FREIGHT 190.183.999.5374 16.90 75364 03/01/03 002492 U S TOY COMPANY INC SALES TAX 190.183.999.5374 4.50 79.40 75365 03/01/02 004846 UNITED GREEN MARK INC IRRIGATION SUPPLIES & EQUIP. 193.180.999.5212 398.46 75365 05/01/02 004846 UNITED GREEN MARK INC IRRIGATION SUPPLIES & EQUIP. 193.180.999.5212 1,0~.17 75365 03/01/02 004846 UNITED GREEN MARK INC IRRIGATION SUPPLIES & EQUIP. 193.180.999.5212 166.36 75365 03/01/02 004846 UNITED GREEN MARK INC IRRIGATION SUPPLIES & EQUIP. 193.180.999.5212 102.23 1,740.22 75366 03/01/02 000325 UNITED WAY 000325 UW 001.2120 217.80 75366 03/01/02 000325 UNITED WAY 000325 UW 165.2120 7.50 75366 03/01/02 000325 UNITED WAY 000325 UW 190.2120 31.99 75366 03/01/02 000325 UNITED WAY 000325 UW 192.2120 .05 75366 03/01/02 000325 UNITED WAY 000325 UW 193.2120 1.80 75366 03/01/02 000325 UNITED WAY 000325 UW 194.2120 .64 75366 03/01/02 000325 UNITED WAY 000325 UW 280.2120 2.50 75366 03/01/02 000325 UNITED WAY 000325 UW 340.2120 1.52 263.80 75367 03/01/02 000325 UNITED WAY VICTORY MTG:3/14:J.L./J.D. 001.150.999.5265 175.00 175.00 75368 03/01/02 000332 VANDORPE CNOU ASSOCIATE OCT 2001 PLAN CHECK SVCS:B&S 001.162.999.5248 3,322.52 3,322.52 75369 03/01/02 VAZQUEZ, JUANITA REFUND:ADMIN CIT# 2561 001.161.4255 50.00 50.00 75370 03/01/02 004261 VERIZON CALIFORNIA FEB XXX-O0}~ GENERAL USAGE 320.199.999.5208 1,904.85 75370 03/01/02 004261 VERIZON CALIFORNIA FEB XXX-O074 GENERAL USAGE 320.199.999.5208 255.61 75370 03/01/02 004261 VERIZON CALIFORNIA FEB XXX-1603 CITY NALL 320.199.999.5208 91.70 75370 03/01/02 004261 VERIZON CALIFORNIA FEB XXX-2626 PD SATELLITE STN 001.170.999.5229 245.94 75370 03/01/02 004261 VERIZON CALIFORNIA FEB XXX-2676 GENERAL USAGE 320.199.999.5208 28.64 75370 03/01/02 004261 VEEIZON CALIFORNIA FEB XXX-3526 FIRE ALARM 320.199.999.5208 83.02 75370 03/01/02 004261 VEEIZON CALIFORNIA FEB XXX-3564 ALARM 320.199.999.5208 55.34 75370 03/01/02 004261 VERIZON CALIFORNIA FEB XXX-3923 STONE 320.199.999.5208 27.54 2,692.64 75371 03/01/02 004848 VERIZON SELECT SERVICES LONG DISTANCE PHONE SVCS 320.199.999.5208 1,306.64 1,306.64 75372 03/01/02 004864 VINEYARD OF THE NEW VIN FY 01/02 COMM SVC FUNDING AWED 001.101.999.5267 1,000.00 1,000.00 753}~3 03/01/02 004861 VON RICHTER, POLLY TCSD INSTRUCTOR EARNINGS 190.183.999.5330 180.00 180.00 75374 03/01/02 WADKINS, MISTY FAYE REFUND:SEC.DEPOSIT:MS01-3351 190.2900 100.00 100.00 75375 03/01/02 003089 WAKEFIELD COMPANY, THE DRINKING FOUNTAIN PARTS/PARKS 190.180.999.5212 448.00 448.00 75376 03/01/02 004865 WEST COAST FESTIVAL FY 01/02 COMM SVC FUNDING AWED 001.101.999.5267 1,000.00 1,000.00 75377 03/01/02 002092 WINTER ADVERTISING AGEN PROD OF 1 COLOR AD & PHOTO 001.150.999.5254 258.60 258.60 75378 03/01/02 WOLNICK, GLORIA REIMB:LA TIMES SHOW:2/15-17/02 001.111,999.5264 27.64 27.64 TOTAL CHECKS 1,261,309.88 VOUCHRE2 CiTY OF TERECULA PAGE 05/0?/02 08:55 VOUCHER/CHECK REGISTER FOR ALL PERIOOS FUND TITLE A#OUNT 001 GENERAL FUND 258,026.48 165 RDA DEV- LO~/HOD SET ASIDE 37,147.97 190 COlg4UNITY SERVICES DISTRICT 31,666.75 193 TCSD SERVICE LEVEL C 6,045.67 210 CAPITAL I#PROVENE#T PROJ FUND 58,876.86 280 REDEVELOPJ4ENT AGENCY - CIP 7,~41.38 300 iNSURANCE FUND 1,215.20 310 VEHICLES FUND 3,021.9~. 320 INFORMATION SYSTE#S 9,3~6.32 330 SUPPORT SERVICES 65.00 ~,0 FACZLZTZES 11,049.02 TOTAL 423,992.59 VOUCHRE2 CITY OF TENECULA PAGE 1 03/07/02 08:55 VOUCHER/CHECK REGISTER FOR ALL PERI00S VOUCHER/ CHECK CHECK VENDOR VENDOR ITE# ACCOU#T ITEH CHECK NU#BER DATE NONBER NAHE DE$CRIPTIOR NUHBER ABOUNT AROUNT 75379 03/06/02 002103 C A P ! 0 02 CONHUNICATION AUED ENTRY FE 001.110.999.5250 75.00 75.00 75382 03/07/02 00043/* ACCELA.CON PROGRAN ENHANCE#ENTS:INF SYS 320.199.999.52~8 910.00 75382 03/07/02 00043~ ACCELA.CON ANNL CRF:4/8-12:HAFELI/KRUEGER 320.199.999.5258 700.00 75382 03/07/02 000~34 ACCELA.CON ANNL CNF:4/8-12:#CBRIDE/BRARDI 001.171.999.5258 700.00 2,310.00 ?5383 03/07/02 003304 ADANS ADVERTISING IRC BILLBOARD CHG CUT:BLUEGRASS 2BO.190.999.5362 450.00 450.00 ?5384, 03/07/02 004054 ADKISON ENGINEERS INC PROF SURVEY SVES:lst ST BRDG 280.199.807.580/* 5,763.00 5,763.00 ?5385 03/07/02 ADNINISTRATIVE PROFESSI 24 ISSUES OF ADNIN PROF 8/1/02 001.161.~.5228 109.90 109.90 ?5386 03/07/02 003394 AZRGAS FIRE PROTECTION FIRE SUPPRESSION SYS TEST:C.H. 3~0.199.701.5250 600.00 600.00 75387 03/07/02 001375 AHERICAN CONSTRUCTION HEP, BERSHZP DUES:JACK Hi, SON 001.163.999.5226 125.00 125.00 ?5388 o3/0?/02 000101 APPLE ONE, l#C. TEN' HELP WE 02/09 SEARCY 001.140.999.5118 751.01 75388 03/07/02 000101 APPLE ONE, ]NC. TEN' HELP WE 02/09 KING 001.140.999.5118 234.00 ?5388 03/07/02 000101 APPLE ONE, IgC. TE#P HELP W/E 02/16 SENG 001.162.999.5118 /,81.00 ?5388 03/07/02 000101 APPLE ONE, IRC. TEN' HELP W/E 02/16 KI#G 001.140.999.5118 250.25 ?5388 03/07/02 000101 APPLE ONE, INC. TEN' HELP WE 02/16 $EARCY 001.140.999.5118 7/~.6~ 751388 03/07/02 000101 APPLE ONE, IRC. TEN' HELP W/E 02/16 DELARN 001,163.999.5118 5~,00 ?5388 03/07/02 000101 APPLE ONE, IRC. TENP HELP W/E 02/23 SENG 001.162.999.5118 416.00 ?5388 03/07/02 000101 APPLE ONE, INC. TEN' HELP W/E 02/23 $EARCY 001.140.999.5118 595.70 ?5388 03/07/02 000101 APPLE ONE, INC. TEN' HELP'W/E 02/?-3 DELAR# 001.163.999.5118 400.40 4,444.~ ?5389 03/07/02 00/,8/*5 ARROW STAR I#C SINGLE TIER LOCKER:Pg #NTC 001.164.601.5218 254.00 75389 03/07/02 00/~,5 ARROW STAR 1NC FREIGHT 001.164.601.5218 90.00 ?5389 03/07/02 00/~,5 ARRON STAR INC SALES TAX 001.164.601.5218 19.69 363.69 ?5390 03/07/02 001323 ARRCY,/HEAD WATER INC BOTTLED ~ATER SVE: HUSEON 190.185.999.5250 24.35 ?5390 03/07/02 001323 ARRONHEAD tATER [NC BOTTLED tATER SVC:IeIYC FAC ~0.199.702.5250 225.OO ?5390 03/07/02 00132~ ARBOgHEND WATER IRC BOTTLED tATER SVC:CRC 190.182.999.5250 37.43 286.78 75391 03/07/02 000622 BANTA ELECTRIC-REFRIGER INSTALL L]GNT FIXTURES ~ CRC 190.182.909.5416 3,850.00 3,850.00 75392 03/07/02 BESANCON~ ROCENARY REFUND:SECURITY DEPT #002-0129 190.2900 100.00 100.00 ?5393 03/07/02 00/,176 BROARWING LONG D/STANCE & INTERNET SVCS 320.199.999.5208 1~195.00 1~195.00 ?5394 03/07/02 002099 BUTTERFIELD ENTERPRISES NAR RESTRO(~ FAC RENT:OLD TgN 2BO.199.999.523~ 826.00 026.00 7~J395 03/07/02 000~ CALZF ASSN FOR LOCAL EC #E#BERSHIP DUES: JANES O'GRADY 001.111.999.5226 ?5.00 75.00 ?5396 03/07/02 0010~4 CALIF 8UILDI#G OFFICIAL CALBO CONF:NCBRIDE:3/12-15/O2 001.171.999.5258 3?5.00 3?5.00 · ?5397 03/07/02 004.228 CAHERON UELDZNG SUPPLY RECREATION SUPPLIES:TCC 190.184.999.5301 18.80 18.80 75398 03/07/02 00253~ CATERERS CAFE REFRSHHNT:FIRE AUTCNATION NTG 001.171.999.5260 47.50 ?5398 03/07/02 00253~ CATERERS CAFE REFRSHHENT:STAFF TEAN BUILDING 001.171.999.5260 79.09 126.59 VOUCNREZ CITY OF TENECU~A PAGE 2 03/07/02 08:55 VOUCHER/CHECK REGISTER FOR ALL PERiOOS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEH ACCOUNT ]TEN CHECK NUNBER DATE NUNBER NANE DESCRIPTION NUMBER AHOUNT AHOUNT 75399 03/07/02 003021 CINGULAR WIRELESS (CELL 01/99-02/08 CELLULAR PHONE SVC 001.120.999.5208 112.65 7~399 03/07/02 003021 CINGULAR WIRELESS (CELL 01/09-02/08 CELLULAR PHONE SVC 001.1/*0.999.5208 70.68 7~399 03/07/02 003021 CZNGULAR WIRELESS (CELL 01/09-02/08 CELLULAR PHONE SVC 001.161.999.5208 472.25 75399 03/07/02 003021 C%NGULAR WIRELESS (CELL 01/99-02/08 CELLULAR: PHONE SVC 001.1~2.999.5208 655.08 75399 03/07/02 003021 CI#GULAR WIRELESS (CELL 01/09-02/08 CELLULAR PHONE SVC 190.180.999.5208 989.83 75399 03/07/02 003021 CINGULAR WIRELESS (CELL 01/99-02/08 CELLULAR' PHONE SVC 280.199.99'9.5208 55.63 75399 03/07/02 003021 CINGULAR UIRELESS (CELL 01/99-02/08 CELLULAR PHORE $VC 320.199.999.52088 /*50.79 75399 03/07/02 003021 CINGULAR UIRELESS (CELL 01/09-02/08 CELLULAR PHONE SVC 001.163.999.5208 2/.7.23 75399 03/07/02 003021 C1NGULAR WIRELESS (CELL 01/99-02/08 CELLULAR PHONE SVC 001.164.601.5208 36/*.01 75399 03/07/02 003021 CINGULAH WIRELESS (CELL 01/09-02/08 CELLULAR' PHONE SVC 001.16/*.602.5208 108./.9 75399 03/07/02 003021 CI#GiJLAR WIRELESS (CELL 01/09-02/08 CELLUL~LR PHONE SVC 001.16/*.60/*.5208 75399 03/07/02 003021 CIRC, IJLAR WIRELESS (CELL 01/99-02/08 CELLULAR PHONE SVC 001.165.999.5208 /*22.87 75399 03/07/02 003021 C]#GULAR WIRELESS (CELL 01/99-02/08 CELLULAR PHONE SVC 001.100.~.5208 362.99 75399 03/07/02 003021 CZNGULAR WIRELESS (CELL 01/09-02/08 CELLULARI PHONE SVC 001.110.999.5208 287.26 75399 03/07/02 003021 CINGUL~LR WIRELESS (CELL 01/99-02/08 CELLUIdLR PHONE SVC 001.150.999.5208 57.02 75399 03/07/02 003021 CiNGULAR WIRELESS (CELL 01/09-02/08 CELLULAR PHONE SVC 330.199.999.5208 65.00 /*,776.02 75/*00 03/07/02 003997 COAST RECREATION IHC PASEO PRK PLAYGROUND EOUIP PRT 190.180.999.5212 18.00 75/*00 03/07/02 003997 COAST RECREATION IHC PASEO PRK PLAYGROUND EQUIP PRT 190.180.999.5212 18.00 75/*00 03/07/02 003997 COAST RECREATION IRC FREIGHT 190.180.999.5212 5.00 75400 03/07/02 00~997 CQAST RECREATIOR INC SALES TAX 190.180.999.5212 2.79 /*3.7'9 75/+01 03/07/02 0021/.7 COK=LINENTS COMPLAINTS ENTERTAINHENT:3/8 FAMILY FUN 190.183.999.5371 175.00 175.00 7~/*02 03/07/02 000~7 CONTRORIX OF HEHET iNSTALL DISTANCE NETEH:TRFFC 310.1910 75/*03 03/07/02 001014 COUNTRY SIGNS & DESIGNS REIMB:FAC i#PR PRGH.'COUNTRY H# 280.199.813.580/, 56.75 56.7~ 7~/*(~ 03/07/02 003272 DAISY WHEEL RIBBON COHP PLOTTER SUPPLIES: GIS 001.161.610.5220 275.68 275.(38 7~05 03/07/02 001233 DANS FEED & SEED INC PROPANE GAS FOR PUBLIC UORKS 001.1(~.~)1.5218 3.3/, 3.3~ 75/*06 03/07/02 00/~808 DINE IN DELIVERY REFRSH#NT:BOUCET M(SHP #TG 19O.180.999.52~0 89.10 89.10 7~/*07 03/07/02 002701 DIVERSIFIED RISK FEB ~PECIAL EVENTS PREMIUNS 300.2180 1,190.20 1,190.20 75/*08 03/07/02 DOOS. AHY REFU~D.'EXERCISE-HATHA YOGA 190.183./.982 /*3.00 /*3.00 75/*99 03/07/02 00~192 DO~NS CONHERCIAL FUELIH FUEL 'FOR CiTY VEHICLES 190.180.999.5263 ~3.67 7~/.99 03/07/02 00~192 DOUNS CONMERCIAL FUELIN FUEL FOR CITY VEHICLES 001.165.999.5263 20.~8 75/*09 03/07/02 00~192 DO~IJS CONHERCIAL FUELIN FUEL FOR CITY VEHICLES 001.163.999.5263 222.75 7~/*09 0.t/07/02 00~192 DO~N$ CO~ERCiAL FUELIN FUEL FOR CITY VEHICLES 001.162.999.5263 107.91 7~/*00 03/07/02 00~192 DOI~S COI~IERCIAL FUEL]N FUEL FOR CITY VEHICLES 001.165.999.5203 10~.~ 7~/.99 03/07/02 00~192 DO~NS COI~IERCIAL FUELZN FUEL FOR CITY VEHICLES 001.16~.602.5263 18.23 917.~8 7~/.10 03/07/02 001(~9 DUNN EDUARDS CORPORATIO SUPPLIES'FOR GRAFFITI RENOVAL 001.1~.601.5218 259./.1 259./.1 7~/.11 03/07/02 001380 E $ I E#PLOY#EIJT SERVIC TENP HELP W/E 02/22 RUSH 001.161.999.5118 2.129.05 75/.11 03/07/02 001380 E S ! E#PLOYMENT SERVIC TEHP HELP W/E 02/22 EBON 3/+0.199.701.5118 1.19/*./.0 7~/.11 03/07/02 001380 E S I E#PLOYNENT SERVIC TE#P HELP W/E 02/22 NONTECII40 3/,0.199.701.5118 751.80 7~/.11 03/07/02 001380 E S ] E#PLOY#ENT SERVIC TE#P HELP W/E 02/22 NONTECINO 3/.0.199.702.5118 250.~0 VOUCHRE2 CiTY OF TENECULA PAGE 3 03/07/02 08:55 VOUCHER/CHECK REGISTER FOR ALL PERIOUS VOUCHER/ CHECK CHECK VENDOR VENDOR ITE# ACCOUNT ITEN CHECK NLMBER DATE NLMBER MANE DESCRIPTION NLMBER AHOURT ANOUNT 75&11 03/07/02 001380 E S E#PLOYHENT SERVIC TENP HELP W/E 02/22 HEER 001.162,999.5118 2,&12.2& 75411 03/07/02 001~80 E S E#PLOY#ENT SERVIC TE#P HELP W/E 02/22 NCCOY 001.161.999.5118 2,623.50 7~411 03/07/02 001380 E S ENPLOY#ENT SERVIC TENP HELP W/E 02/22 ROSALES 001.171.~.5118 1,5~.16 75411 03/07/02 001380 E S ENPLOYNENT SERVIC TERP HELP W/E 02/08 #CCLARAHAN 001.161.999.5110 370.87 75411 03/07/02 001380 E S E#PLOYNENT SERVIC TE#P HELP WE 02/08 #CCLAXAHAN 001.161.999.5118 616.58 75411 03/07/02 001380 E S E#PLOY#ENT SERVIC TE#P HELP W/E 02/22 #CCLANASAN 001.161.999.5118 1,061.93 75411 03/07/02 001380 E S E#PLOYNENT SERVIC TE#P ,HELP W/E 02/22 CH]NG 001.161.999.5118 651.60 7~411 03/07/02 001380 E S ENPLOYNENT SERVIC TE#P HEL~ W/E 02/22 BARTINEZ 001.163.999.5118 1,176.00 75411 03/07/02 001380 E S ENPLOY#ENT SERVIC TENP HELP W/E 02/22 ROSA 001.120.999.5118 975.80 75411 03/07/02 001380 E S ENPLOYNENT SERVIC TENP HELP W/E 01/25 ICRNIGOUSKI 001.161.610.5118 1,132.56 75411 03/07/02 001380 E S ENPLOYNENT SERVIC TENP HELP W/E 02/08 KAXICO~SKI 001.161.610.5118 1,258.40 75411 03/07/02 001380 E S E#PLOYNENT SERVIC TENP HELP W/E 02/22 SANIGOUSK% 001.161.610.5118 1,195.48 19,366.97 75412 03/07/02 002060 EUROPEAN DELZ & CATE#IN REFRSHNRT:PROF #TG W/ATTORNEY 190,180.999.5260 83.45 75412 0~/07/02 002060 EUROPEAN DELI & CATERIN REFRSH#NT:GRAND OPEHIRG SR CTR 190.181.999.5301 1,125.00 75412 03/07/02 002060 EUROPEAN DELI & CATERIN SALES TAX 190.181.999.5301 87.19 75412 03/07/02 002060 EUROPEAN DELI & CATERIN REFRSHNNT:CLOSED SESSION 2/26 001.100.999.5266 132.37 1,428.01 75415 05/07/02 001056 EXCEL LANDSCAPE JAN LDSCP INPR:OLD TWN STSCPE 193.180.999.5416 915.20 915.20 7'5414 03/0?/02 000/.78 FAST SIGNS SEHIOR CENTER BANNER 190.181.999.5301 163.60 75415 03/07/02 000163 FEDERAL EXPRESS iRC EXPRESS NAiL SERVICES 001.140.999.5230 55.67 75415 05/07/02 000165 FEDESAL EXPRESS IRC EXPRESS NA[L SERVICES 001.165.999.5230 10.35 75415 03/07/02 000165 FEDERAL EXPRESS INC EXPRESS NAIL SERVICES 001.163.999.5230 11.70 75415 03/07/02 000165 FEDERAL EXPRESS /NC EXPRESS NAIL SERVICES 320,199.999.5230 14.26 75415 03/07/02 000165 FEDERAL EXPRESS INC EXPRESS NAIL SERVICES 190.180.999.5230 12.05 75415 03/07/02 000165 FEDERAL EXPRESS IRC EXPRESS NAIL SERVICES 001.171.999.5230 38.~ 75415 03/07/02 000165 FEDERAL EXPRESS IRC EXPRESS HAIL SERVICER 001.110.999.5230 12.05 13~.52 75416 03/07/02 001511 FIELD#AN ROLAPP & ASSUC JAN PRF FINANCIAL A~VISOR:UOLF 001.26~ 1,837.50 1,837.50 75417 03/07/02 00,300 FiRE TRUCK SERVICES iRC NEW ALTERBATOR:#EDiC SQUAD 001.171.999.5311 182.40 ?~417 03/07/02 00,300 FIRE TRUCK SERVICES IRC SALES TAX 001.171.999.5311 14.14 196.54 75418 03/07/02 000166 FIRST ANERICA~J TITLE CO TITLE REPT:R.C.ND BRDG WIDEN 210.165.710.5801 500.00 75418 03/07/02 000166 FIRST AXERICAX TITLE CO LOT BOOK REPT:42793 TIERNA ROR 165.199.999.5250 150.00 75&18 05/07/02 000166 FIRST ANERICAN TITLE CO LOT BOOK REPT:30661LORA LINDA 165.199.999.5250 150.00 75&18 03/07/02 000166 FIRST ANERICAN TITLE CO LOT B(XXC REPT:PJU4SEY 165.199.999.5250 150.00 75418 03/07/02 000166 FIRST AXERICAN TITLE CO LOT BOOK REPT:SANTIAGO,BILLY 165.199.999.5250 150.00 75418 03/07/02 000166 FIRST AXERICAX TITLE CO LOT BOOK REPT:44506 LA PAZ RD 165.199.999.5250 150.00 1,250.00 75419 03/07/02 000166 FIRST ANERICAN TITLE CO PROPERTY ;TAXES:OLU TgN APRTS 165.199.823.5700 24w846.00 2&~846.00 75420 05/07/02 0033~7 FIRST BANKCARD CENTER XX-7824 CORERCHERO:NETROLINK 001.100.999.5260 13.00 75420 03/07/02 00334.7 FIRST BANKCARD CENTER XX-9798 STORE:STAPLES-SUPPLiES 001.100.999.5220 150.0, 7'5420 03/07/02 0033~,7 FIRST BANKCAXD CENTER XX-92T/' ~ORERTS,R:CONF/PRF #TG 001.100.999.5258 1,796.43 75420 03/07/02 005347 FIRST BANKCARD CENTER XX-9277 ~ORERTS,R:CONF/PRF NTG 001.100.999.5260 13.00 7~J420 03/07/02 00~347 FIRST BANKCAXD CENTER XX-9277 ROgERTS,R:CONF/PRF NTG 001.1270 1E5.40 75420 03/07/02 003~,7 FIRST BAXKCAXD CENTER XX-9277 RORERTS,R:CORF/PRF NTG 001.1170 20.00 75420 03/07/02 003347 FIRST BANKCARD CENTER XX-2292 ROBERTS,G:GFO/SUPPLIES 001.140.999.5220 39.54 V00CSEE2 CITY OF TENECULA PAGE 4 03/07/02 OR:55 VOUCHER/CHECK REGISTER FOR ALL PERIOOS VOUCHER/ CHECK CHECK VENDOR VENDOR iTE'N ACCOUNT ITE# CHECK NUHBER DATE NUNBER NAHE DESCRI!PTIDN NU#GER AHOUNT ANOUNT ?5420 03/07/02 003~47 FIRST BANKCARD CENTER XX-2292 RORERTS,G:GFO/SUPPLIES 001.140,999.5258 1,300.82 7~420 03/07/02 0033~7 FIRST BANKCARD CENTER XXo6165 YATES:SUPPLIES:TRAININ 001.100.999.5260 51.00 75420 03/07/02 0033~7 FIRST GANKGARD CENTER XX-6165 YATES:SUPPLIES:TRAINZN 001.100.999.3228 ~6.32 ?5420 03/07/02 003~47 FIRST BANKCARD CENTER XX-6165 YATES:SUPPLIES:TRAININ 001.150:999.5260 /,6.00 ?5420 03/07/02 003~7 FIRST BANKCARD CENTER XX-6165 YATES:SUPPLIES:TRAININ 001.150.999.5238 190.94 7~420 03/07/02 003347 FIRST BANKCARD CENTER XX-6165 YATES:SUPPLIES:TRAININ 001.150.999.5265 165.96 75420 03/07/02 003347 FIRST BANKCAND CENTER XX-6165 YATES:BUPPLIES:TRAININ 001.1990 ~85.55 75420 03/07/02 0033&7 FIRST RANKCAND CENTER XX-6165 YATES:BUPPLIES:TRAININ 001.150.999.5261 240.00 75420 03/07/02 0033&7 FIRST BANKCARD CENTER XX-1405 UBNOSKE:APA/PROF #TGS 001.161.999.5260 42.60 75420 03/07/02 003~47 FIRST BANKCARD CENTER XX-1405 UGNO~KE:APA/PROF #TGS 001.161.999.5258 1,771.40 6,478.80 75421 03/07/02 0001~0 FRANKLIN QUEST COHPANY DAY TIBER SUPPLIES:Pg/E#G/LA#D 001.163.999.5220 45.68 75421 03/0?/02 000170 FRANKLIN QUEST CO#PANY DAY TIBER SIJPPLIES:Pg/ENG/LAND 001.165.999.5220 ~.52 75421 03/07/02 000170 FRANKLIN GUEST COMPANY DAY TIGER SUPPLIES:Pg/ENG/LAND 001.1~/~.604.5220 37.20 75421 05/07/02 000170 FRANKLIN GUEST COHPANY FREIGHT . 001.16:3.999.5220 3.60 75421 03./07/02 000110 FRANKLIN GUEST C~HPANY FREIGHT ~ 001.165.999.5220 3.60 75421 03/07/02 000170 FRANKLIN QUEST CONPANY FREIGHT 001.16&.604.5220 3.60 75421 03/07/02 000170 FRANKLIN GUEST C~PANY SALES TAX 001.163.999.5220 3.37 75421 03/07/02 000170 FRANKLIN GUEST C(~PANY SALES TAX 001.165,999.5220 3.57 75421 03/07/02 000170 FRANKLIN QUEST COGEANY SALES TAX 001.16~.60~.5220 3.57 75421 03/07/02 0001~0 FRANKLIN QUEST CO#PANY DAY TI#ER SUPPLIES:Pg/EHG/LAND 001.163.999.5220 17.75 75421 03/07/02 000170 FRANKLIN QUEST COMPANY DAY TIGER SUPPLIES:P~/ENG/LA#D 001.165.999.5220 17.30 75421 03/07/02 000170 FRANKLIN GUEST COHPANY DAY TIGER SUPPLIES:Pi//ENG/LAXD 001.16/*.60/*.5220 14.45 75421 03/07/02 000170 FRANKLIN GUEST COHPANY SALES TAX 001.16.3.999.5220 1.28 75421 03/07/02 000170 FRANKLIN QUEST C(~4PANY SALES TAX 001o165.999.5220 1.28 75421 03/07/02 000170 FRANKLIN GUEST C(~4PANY SALES TAX 001.1~.60~.5220 1.28 202.25 75422 03/07/02 0O4105 GIFTS GALORE SPRG EGG HURT SUPPLI~S:TCSD 190.183.999.5370 851.40 851.40 ?5423 03/07/02 002328 GLASS BLASTERS iBC HTR PITCHERS:COUNCIL/DIRECTORS 001.100.999.5220 96.OO ?5423 03/07/02 002528 GLASS BLASTERS iBC SALES TAX 001.100.999.5220 ?.~ 103.~ 75424 0~/07/02 O0/~O& GOOBE RESEARCH & ANALYS PUBLIC OPINION NEEDS. ASSESSNNT 210.199.129.5802 3,200.00 3,200.00 75425 03/07/02 004607 G~ACE BUILDING RAINTENA JANITORIAL GVCS:CITY pARKS 190.180.999.5250 3,535.00 ?5425 03/07/02 004607 GRACE BUILDING HAINTENA JANITORIAL SVCS:OLD TMN 001.16~.603.5250 195.00 3,730.00 ?5426 03/07/02 HADJIS, NARCINA REFUND:SECURITY DEPT NG01-2118 190.2900 100.00 IO0.O0 75427 03/07/02 HANCOCK, CHESTER A. REFUND:SECURITY DEPT #S01-3182 190.2900 100.00 100.00 75428 03/07/02 000186 HANKS HARDUARE INC HARDI~AREiBUPPLIES:FIRE STN 8~ 001.171.999.5242 197.82 ?5428 03/07/02 000186 HANKS HARDUARE IBC HANDUARE SUPPLIES:Pg HNTC 001.16~.601.5218 212.90 ?5428 03/07/02 000186 HANKS HARDI/ARE INC HARDk~ARE SUPPLIES: LAND DEVEL 001.16~.999.5242 7~428 03/07/02 000186 HANKS HARDgARE INC HARDI/ARE SUPPLIES: CiTY HALL ~40.199.~01.5212 38.49 ?5428 03/07/02 000186 HANKS HARDgANE INC HANDgANE SUPPLIES: CRC 190.182.999.5212 80.65 ?5428 03/07/02 000186 HANKS HARDgARE INC HARDgARE SUPPLIES: TCSD PRKS 190.180.999.5212 826,65 75428 03/07/02 000186 HANKS HARGk~ARE INC HARDI/ARE BUPPLIES:SR CENTER 100.181.999.521Z 125.9~ ?5428 0~/07/02 000186 HANKS HARDgARE INC HARDkIANE SUPPLIES: TCC 190.184,999.5212 68.90 ?5428 03/07/02 000186 HANKS HARDHARE INC HARDI/ARE SUPPLIES: Pt/ NNTC 001.16&.601.5218 25.58 75428 03/07/02 000186 HANKS HARDIdARE INC HARDgARE SUPPLIES:BUSEUH 100.185.999.5212 68.54 VOUC#RE2 ' CITY OF TEN,CUbA PAGE 5 03/07/02 08:55 VOUCHER/CHECK REGISTER FOR ALL PERI,OS VOUCHER/ CHECK CHECIC VENDOR VENDOR ITEM ACCOUNT ITEN CHECK NUNSER DATE NUMBER NAME DESCRIPTION NUMBER AM(TJNT AHOUNT 75428 03/07/02 000186 HANKS HANDUARE INC HARDUARE SUPPLIES: NDSEUN 100.185.999.5250 68.2& 1,821.~, 75/*29 03/07/02 002906 HE#ET FENCE COMPANY RES IMPR PRGN:KOBALLA,NANLO 165.199.813.580/* 845.00 8/*5.00 75&30 03/07/02 HILLIS, SHEILA REFUND;SECURITY DEPT #S02-0203 190.~900 100.00 100.00 75/.31 03/07/02 002126 HILLYARD FLOOR CARE SUP FLOOR CLEANING SUPPLIES:CRC 190.182.999.5212 34.36 34.3~ 75432 03/07/02 000871 HILTON HTL:CALSO CORF:3/12-15:#CBRIDE 001.171.999.5258 /d~,.?9 /,~,.79 75/*33 03/07/02 000963 HOC~J~, DAVID PARTNER FOR SNRT GR~l'H:l/2/*'26 001.161.999.5258 209.12 209.1Z 75&3/* 03/07/02 HONES BY THE GREENS HOA LDSCP AGRNNT/SETTLENENT PALA 210.165.6~1.580~ 5,T~O.O0 5,730.00 75435 03/07/02 HUGHES, NATT RE[NB;NEW SOLES FOR BOOTS 001.170.~.52/.3 65.00 65.00 75/*36 03/07/02 003622 i C # A - NENBERSHIP NENEERSHIP DUES:GRANT YATES 001.110.999.5226 648.13 648.13 75/*37 03/07'/02 001517 INTEG~ATEO INSIGHTS DBA EMPLOYEE ASSISTANCE ?ROGRAN 001.150.999.524,8 566.58 566.50 75438 03/07/02 001/.07' INTER VALLEY POOL SUPPL P(~L SANITIZING CHEMICALS 190.186.999.5250 317.86 317.86 75/*39 03/07/02 001186 IRWIN, JOHN TCSO INSTRUCTOR EARNINGS 190.183.999.5330 ~68.00 ~68.00 7541,0 03/07/02 0021&0 JAGUAR COUPUTER SYSTENS NETWORK CLIENT SVCS:INFO SYS 320.199.999.5250 911.85 75/*/)0 03/07'/02 0021/)0 JAGUAR COMPUTER SYSTEMS NETWORK CLIENT SVCS:IBFO SYS 320.199.999.5250 527.27 1,439.12 75/~(~1 03/07/02 00/*0~9 JENICENS & GILCSEIST JAB NR LEGAL SERVICES 001.130.999.52/.6 175.00 175.00 75/*/*2 03/07/02 JESTER, RAREN REINB:FRANKLIN PLANNER BINDER 001.1/*0.999.5220 103.4/~ 103./*/* 75/~3 03/07/02 003860 JOE'S SHEET METAL II FABRICATE/INSTALL DBA~ER:FIRE 001.171.999.52/.2 57'1.08 571.08 75~/+/* 03/07/02 00/.813 JOLLY jLIXpS JOLLY JLANP FOR TOY DRIVE EVENT 001.17'1.999.5370 75.00 75.00 754~,5 03/07/02 KiRK NUNIO CONSTRUCTION REFUND:OVRPT SPECIAL INSURANCE 300.199./.086 25.00 25.00 75/d~6 03/07/02 000209 L & g FERTILIZER INC N#TC SUPPLIES FOR PI/ WORK CREU 001.16~.601.5218 819.70 819.70 75/~*7 03/07/02 00/*087 LO~'S RES INPR PRGN:KARR,NARGARET 165.109.813.580~ 529.35 529.35 7~8 03/07'/02 004087 LOUE'S HARD~ARE SUPPLIES: TCSD 190.180.999.5212 23.35 23.35 75/49 03/07/02 00/.141 NAINTEX INC CUSTOOIAL SUPPLIES: CRC 190.182.999.5212 157.32 75~9 03/07/02 00~1&1 NAINTEX INC CITY HALL CUSTODIAL SUPPLIES 3&0.199.?01.5212 16~.91 751,A,9 03/07'/02 00~1&1 BAIBTEX IgC CUSTODIAL SUPPLIES: BAINT FAC ~.0.199.702.5212 141.22 75z~.9 03/07/02 00/.141 I~IRTEX Igc TCC CUsTnnlAL SUPPLIES 190.18~.999.5212 1/.1.22 603.67 7'5/*50 03/07'/02 IIARIANHA DEVELOFflENT CO REFUND:BLDG OEPOSIT:B02-O/*35 001.2(=60 1,130.00 1,130.00 75/.51 03/07'/02 NARTINEZ, OEAN# REFUIIO=GyMHAST]CS-DYNONITES 190.183./.982 6.00 6.00 VOUCHRE2 CZTY OF TEHECULA PAGE 0~;/07/02 08:55 VOUCHER/CHECK REGISTER FOR ALL PERI,OS VOUCHER/ CHECK CHECK VENDOR VENDOR iTE# ACCOUNT ITE# CHECK NURSER DATE NURSER HAHE DESCRIPTIOU NUHBER ANOUNT AHOUNT 7~&52 03/07/02 0009i~ #CCAZN TRAFFIC SUPPLY i HARDk~ARE/TRAF SGNL CNTRL CBNTS 001.16~.602.5242 7~452 03/07/02 0009/~ #CCAZB TRAFFIC SUPPLY I SALES TAX 001.16~.602.5242 23.41 $25.41 75453 03/07/02 #CNILLIN CO#PAN[ES, LLC REFUND.*BLDG PERHiT:B02-0334 001.162.4285 14.00 14.00 75454 03/0?/02 NERCSANT, RAYNOND J. REINB:FACARE INPROVENE#T PRGI~ 280.199.813.5804 190.00 190.00 7~455 03/0?/02 001905 HEYERS, DAVID UILLIAH TCSD IHSTRUCTOR EARNINGS 190.183.999.5330 736.00 ?~455 0'4/07/02 001905 #EYERSj DAVID giLL]AR TC$O IBSTRUCTOR EARNINGS 190.183.999.5'430 224.00 960.00 75456 03/07/02 001067 #ITY LiTE INC TABLES FOR SR CENTER EXPANSION 190.181.999.5242 2,016.00 75456 03/0?/02 001067 #ITY LITE INC SALES TAX 190.181.999.5242 1~6.16 2,162.16 7~J457 03/07/02 00~534 HOSiLE SATELLITE VENTUR ANNUAL AiRTI#E FOR SATEL PHONE 001.110.999.5278 69.00 69.00 75458 03/07/02 00~128 NONANARCO, ANTHONY J. TCSO IHSYRUCTOR EARNINGS 190.183.999.5330 72.00 72.00 7~459 03/07/02 00225? HOST DEPENDABLE FOUNTAI PARTS FOR VARIOUS PARK$:TCSO 190.180.999.5212 498.00 /*98.00 751,60 0'4/07/02 001986 NUZAK INC gAR NUSIC BROADCAST: OLD TOUR 001.16/*.603.5250 59.50 59.50 75/,61 03/07/02 NELSON, TINOTHY W. REFUND;SEC.DEPOSIT:#S02-056~ 190.2900 100.00 100.00 7~J462 03/07/02 00396~ OFFZCE DEPOT BUSINESS S #ISC OFFZCE SUPPLiES:PLANNiNG 001.161.999.5220 221.76 7~62 03/07/02 00396~ OFFICE DEPOT BUSINESS S #ISC OFF[CE SUPPLiES:PLANNiNG 001.161.999.5220 129.19 7~462 03/07/02 00396/* OFFICE DEPOT BUS[HESS S #ISC OFFICE SUPPLiES:FiNANCE 001.1/,0.999.5220 38.'49 389.34 75~63 03/07/02 002105 OLD TOUN TIRE & SERVICE VEHICLE REPAIR & RAZNT:91-011 190.180.999.5214 181.12 101.12 75464 0'4/07/02 002668 ONEGA LAKE SERVICES NAR DUCK POND ~TER RAINT:TC$O 190.180.999.5250 800.00 800.00 7~465 03/0?/02 003762 P # X #EDICAL PARAHEDI~ SUPPLIES 001.171.999.5311 657.93 75~65 03/07/02 003?6?. P # X HEDICAL PARAHEDIC SUPPLIES 001.171.999.5311 229.2? 887.20 75~66 0'4/07/02 003955 PARE CONSULTING SERVICE VOL.RECOGN.GIFT$:03/06/02 190.18~.999.5374 1,620.00 1,620.00 75~67 03/07/02 004~5 pEACOCK ENTERPRISES INC INFOCUS LP530 PROJECTOR 320.1970 3,495.00 7'~Jl/o? 03/07/02 00~805 pEACOCK ENTERPRISES INC SALES TAX 320.1970 270.86 3,?65.86 75468 0'4/07/02 000249 PETTY CASH PETTY CASH REI#BURSE#ENT 190.180.999.5261 20.00 75468 03/07/02 000249 PETTY CASH PETTY CASH REI#BURSEHEHT 190.180.999.5261 20.00 75~68 03/0?/02 000249 PETTY CASH PETTY CASH REII4BURSE#ENT 001.16~.601.5260 19.33 7~J~68 0'4/07/02 000249 PETTY CASH PETTY CASH REI#BURSEHENT 001.164.601.5260 13.55 7~Ji~68 03/07/02 000249 PETTY CASH PETTY CASH REI#BURSE#ENT 001.16~.601.5260 6.00 75468 03/07/02 000249 PETTY CASH PETTY CASH REI#BURSEHENT 001.170.999.5260 18.87 7'5/*68 03/0?/02 000249 PETTY CASH PETTY CASH REII~URSE#ENT 001.162.999.5260 13.85 7~8 03/07/02 0002/*9 PETTY CASH PETTY CASH RE[#BURSEHENT 001.162.999.5260 9.6/* 75~68 03/07/02 000249 PETTY CASH PETTY CASH RE]NDURSENENT 001.162.999.5242 6./-~ 75~68 0'4/07/02 000249 PETTY CASH PETTY CASH REINBURSE#ENT 190.183.999.5'474 7.53 75/*68 03/0?/02 000249 PETTY CASH PETTY CASH REI#BURSE#ENT 001.140.999.5220 25.61 75~68 03/07/02 000249 PETTY CASH PETTY CASH REINDURSE#ENT 190.183.999.5374 2.99 VOUCHRE2 CiTY OF TENECU~.A PAGE 7 03/07/02 08:55 VOUCHE~/CXECK REGISTER FOR ALL PERI(~S VOUCHER/ CHECK CHECK VENDOR VENDOR ITE# ACCOUNT ITEH CHECK NUHBER DATE NLJ~BER RAgE DESCRI,PTIOR p NURSER AROUNT AROUNT 75~68 03/07/02 000249 PETTY CASH PETTY CASH REZRBURSE#ERT 001.140.999.5261 15,00 75~68 03/07/02 000249 PETTY CASH PETTY CASH REZ#BURSE#ENT 001.140,999.5262 22.61 '~468 0]/07/02 000249 PETTY CASH PETTY CASH REI#BURSE#ENT 190.183.999.5320 41.~6 75468 0]/07/02 000249 PETTY CASH PETTY CASH REINBURSEHENT 190.184.999.5301 17.29 75468 03/07/02 000249 PETTY CASH PETTY CASH REU~BURSEHE#T 001.165.999.5260 5.00 75~68 03/07/02 000249 PETTY CASH PETTY CASH REII~URSE#ENT 001.150,999.5260 37.73 302.90 75469 0]/07/02 PINE, JEAg#1BE REFURD:SEC.DEPO$1T:#S01-2813 190.2900 100.00 100.00 75470 03/07/02 000253 POSTHASTER EXPRESS PAIL & POSTAL S¥CS 001.161.999.5230 88.95 '1~470 0]/07/02 000253 POSTPASTER EXPRESS PAiL & POSTAL SVCS 001,120.999.5230 63.25 152.20 75471 03/07/02 000254 PRESS ENTERPRISE CONPAM JAg VAR.P~JBLIC ROTICES:PLANNIN 001.161.999.5256 518.95 75471 03/07/02 000254 PRESS ENTERPRISE CORPAR JAg VARIOUS ADVERTISe#G: TCSD 190.180.999.5254 50~.00 75471 03/07/02 000254 PRESS ENTERPRISE CO#PAN JAR VAR. PUBLIC NOTICES:PLAN 001.161.999.5256 451.90 75471 0]/07/02 000254 PRESS ENTERPRISE C~PAg JAN VAR. PUBLIC NOTICES: PLAR 001.161.999.5256 49.7~ 75471 0]/07/02 000254 PRESS ENTERPRISE COHPAR JAR VAR.PUGLIC NTCS:CITY CLERK 001.120.999.5256 51.00 75471 03/07/02 000254 PRESS ENTERPRISE CORPAR SUSSCRIPTIOR RENEt/AL:CITY #GR 001.110.999.5228 143.00 1,718.60 754T~ 03/07/02 003~93 PRO-CRAFT OVERHEAD DOOR RES i#PRV PR6H: BRAGGER 165.199.813.580~ 820.00 75472 03/07/02 003493 PRO-CRAFT OVERHEAD DOOR RES I#PRV PRGH: GR[FFi# 165.199.813.5804 875.00 75472 03/07/02 003493 PRO-CRAFT OVERHEAD DOOR RES INPRV PRGH: SZERCHUK 165.199.813.5804 875.00 2,570.00 7547'$ 03/07/02 003687 (~UEST ENVIROI~ERTAL REHOVE HAZ-PAT FRGN CiTY YARD 001.16~.601.5430 1,145.00 7~J473 03/07/02 003~87 GUEST EHVIROR#ENTAL REHOVE HAZ-PAT FRON CiTY YARD 001.164.601,5430 79~,00 1,939.00 ~474 03/07/02 00136~ R C P BLOCK & BRICK Igc GRAFFITi REHOVER FOR Pg PAINT 001.16~.601.5218 754.20 75474 03/07/02 00136~ R C P BLOCK & BRICK IRC SALES TAX 001.164.601.5218 58.45 812.65 7~47~ 03/07/02 000262 RANCHO CALIF k~ATER DIET FEB 01-99-02003-0 FLOATING HTR 001.16~.601.5250 285.53 '~J475 03/07/02 000262 ~CHO ~LZF ~TER DIET P/E 02-1~-0~ V~ ~TER NETERS 1~.1~.~.5240 ~7.17 ~4~ 03/07/02 000~ ~NCHO ~LZF ~TER DIET P/E 02-11-02 VAR ~TER HETERS 193.1~.~.5240 ~4~ 03/07/02 0~2~ ~NC~ ~LZF ~TER DZST FEB 0~-~-10100-1 DIaZ RD 1~.1~.~.5Z40 ~.19 5,5~.~ ~76 03/07/0~ 0~5~ RE~gCY LIGHTIgG ~SE~ E~ECTRI~L ~PPLY I~.185.~.5Z12 224.50 ~76 03/07/02 0~5~ RESEgCY LiG~TIgG ~LES T~ ~ 1~.185.~.5212 17.40 ~&76 03/07/02 ~5~ RE~NCY LZGgTZgG V~i~$ SITES ELECTRI~L 1~.185.~.5212 210.12 ~76 03/07/02 0~5~ RE~gCY L]GHT]gG FL~RESEENT ~LB S~ES S.I.S. 1~.1~.~.5~12 207.41 ~476 03/07/0~ 0~5~ RE~gCY LI6HTIg6 ELECTRI~L ~PLIES= CRC 1~.1~.~.5212 ~5.81 1,1~5.24 ~ 03/07/02 001500 REGi~L T~[glgG ~gTE ~ERVZ~'S A~EHY~:H.HAR~D 001.1~.~.5261 500.00 500.00 75478 03/07/02 003742 REHAB FINANCIAL CORPORA RES I#PRV PR(;N LOAN SVCS 165.199.813.5804 600.00 600.00 75479 03/07/02 002907 REINHART FORTES ASSOCIA APPRAISAL SERViCES-LIBRARY 210.199.129.5802 4,000.00 4,000.00 7~J~80 03/07/02 003591 REHES C~V/4ERCIAL HANAGE ENERG CLEAN-UP - HEAVY gIgD$ 001.16~.601.5402 5,000.00 5,000.00 75481 03/07/02 00[~57 RHINO LININGS OF RIVERS PROTECTIVE BEDLIHER/Pg VEHICLE 310.1910 300.00 300.00 75482 03/07/02 000266 RIGHTPAY PAR EQUIP RE#TAL-L#G CYN CREEK 190.180.999.5238 54.39 VOUCHRE2 CITY OF TENECULA PAGE 8 03/0?/02 08:55 VOUCHER/CHECK GEGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ' ITEN ACCOUNT iTEN CHECK HUNBER DATE NOOBER RANE DESCRI,PTIOR NUNBER ANOUNT ANOUNT 75482. 03/07/02 000266 RIGHTWAY ' MAR EQq,Jll~ RENTAL - RIVERTOR PK 1SO.180.999o5238 70.89 75482 03/07/02 000266 RIGHT,AY NAR P-J PORT REHTAL VETERAN PK 190.180.999,5238 54.39 179.67 75483 03/07/02 000/.18 RIVERSIDE CO CLERK & RE JA# 2002 RECORDINGS & COPIES 165.199.999°5250 11.00 11.00 75~8~ 03/07/02 000268 RivERSIDE CO HABITAT FEB 2002 K-RAT PAYHENT ' 001.2300 12/*,770o00 12&o770o00 ?5485 03/07/02 003587 RIZZO CONSTRUCTION IRC CiTY HALL INPROVENENTS 001.120.999.5601 3,567.00 3,567.00 75486 03/07/02 002226 RUSSO, NARY ANNE TCSO INSTRUCTOR EARNINGS 190.183.999.5330 700.00 700.00 754~B7 03/07/02 002681 SILVER LEGACY RESORT & ACCELA CF:CN:#3731108~5600 001.16~.999.5258 261.72 ?5487 03/07/02 002681 SILVER LEGACY RESORT & ACCELA CF:LB:~PJ73110885625 001.162.999.5258 261.72 75/,87' 03/07'/02 002681 SILVER LEGACY RESORT & ACCELA CF:S~:#3731108~5525 001.162.~.5258 261.~2 75~87 03/07'/02 002681 SILVER LEGACY RESORT & ACCELA CF:K.Ko:f/~73181197'157' 320.199.999.5258 261.72 ?5/.87' 03/07'/02 002681 SILVER LEGACY RESORT & ACCELA CF:T.N.:#37518119716/* 320.199.999.5258 130.86 1,177.7'/* ?5/*88 03/07'/02 000751 SKILLPATH IRC BUS ~RTG 8ASICS:RHRUSKA 031802 001.110.999.5261 199.00 199.00 ?5/*89 03/07'/02 S#ITH, LEAH REFUND:NUSIC-LITTLE HOZARTS 190.183./.982 /*3°00 /*3.00 7'5/*90 03/07'/02 000537' SO CALIF EDISON FEB 2-11-007'-0455 6TH ST 001.16~.663.52/*0 330.30 75/*~0 03/07'/02 000537' SO CALIF EDISON FEN 2-22-575-087'6 VARIOUS NTRS 190.180.999.5319 265.51 ?5/*90 03/07'/02 000537' SO CALIF EDISON JAN 2o14~204-1615 FRNT ST RDiO '440.199.701.52/.0 8.05 ?5/*90 03/07/02 000537' SO CALIF EDISON FEB 2-22-057'-2226 6TH ST 1~0.180.999.5319 52.07 ?5490 03/07'/02 000537' SO GALZF EDISON FEB 2-18-9'~?-3152 NUGEUN ?5/*90 03/07'/'02 000537 SO GALIF EDISON FEB 2-19-683-3263 FROOT ST PED 001.16/~*.603.5319 311.99 ?5/*90 03/07'/02 000537' SO CALIF EDISON FEB 2-22-496-3~39 WINCHESTER 190.180.999.5319 59.00 ?5490 03/07'/02 000537' SO CALIF EDISON FEB 2-02-351-/.946 SR CTR 190.181.999.52/.0 835.~5 ?5/*90 03/07'/02 000537 SO GALIF EDISON FEB 2-00-397'-5042 CiTY HALL 340.199.701.52/.0 6,053.85 75490 03/07/02 000537 SO CALIF EDISON FEN 2-00-397-5067' CALLE #EDUSA 193.180.999.52/.0 652.43 ?5490 03/07'/02 000537' SO CALIF EDISON FEB 2-18-0/,9-6416 FROOT ST PED 001.164.603.5319 193.19 ?5490 03/07/02 000537 SO CALIF EDISON FEB 2-21-911-7892 $.SIDE PK LT 001.164o603.52/*0 127'.2/* ?5/*90 03/07'/02 000537 SO CALIF EDISON FEB 2-02-502-8077 HAUNT FAC 3&0.199.702.5240 1,/.34.11 ?5/*90 03/07'/02 00053? SO CALIF EDISON FEB 2-19-17'1-856~ ~EDDING CHPL 190.185.~.52/*0 70.51 75/*90 03/07'/02 000537 SO CALIF EDISON FEB 2-18~528-9980 SANTIAGO 190.180.999.5319 48.99 10°919./.1 75491 03/07/02 000519 SOUTH COUNTY PEST CONTR CiTY HALL PEST CONTROL SVCS 3~0.199.~01.5250 56.00 75/.91 03/07'/02 000519 ~UTH COUNTY PEST CONTR NAIHT. FAC. PEST CONTROL SVC. 3&0.199.702.5250 /*0.00 75/.91 03/07/02 000519 SOUTH COUNTY PEST CONTR PEST CONTROL SVCS: A~UATICS 1~0.186.~.5250 39.00 75/.91 03/07'/02 000519 SOUT# COUNTY PEST CONTR BUSEUN & 'CHAPEL PEST CONTROL 1~0.185.~9.5250 32.00 75/.91 03/07'/02 000519 SOUTH COUNTY PEST CONTR NUSEUI. I & CHAPEL PEST COOTROL 1SO.185.999.5250 /*2.00 209.00 ?5/*92 03/07/02 00~282. SOJTH~EST TRAFFIC SYSTE iNSTALL VEHICLE LGHT BAN:Pt~ 310.1910 2,3?5.00 2,,375.00 ?5/*93 03/07'/02 004163 SPORTS CHALET SOFTBALLS FOR SPORTS pPG# 190.187.999.5301 930.00 ?5/*93 03/07/02 004163 SPORTS CHALET SALES TAX 190.187.999.5301 7'2.08 1,002.08 ?5494 03/07/02 000293 STADIUN PIZZA REFRSH#NT;GENERAL PLAN UPOATE 001.161.999.5260 90.93 90.93 ?5/*95 03/07/02 000305 TARGET STORE REC ~UPPLIES-SPECIAL EVENTS 190.183.999.5370 26.99 26.99 VODCHRE2 CiTY OF TEMECULA PAGE 9 03/0?/02 0~:55 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CNECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK NORBER DATE MUNBER NAME DESCRIPTION NUMBER ANOUMT AROUNT 75496 03/07/02 TAVIZOR, ELAINE REFUND:SEC.DEPOSiT:MS01-2593 190.2900 100.00 100.00 75497 03/07/02 000168 TEMECULA FLOWER CORRAL OEODR FOR #.P.S.C. GRAND OPEN 190.181.999.5301 10/,./,6 7549? 03/07/02 000168 TENECULA FLOWER CORRAL SUNGEiNE FUND 001.2170 147.46 251.92 75498 03/07/02 000697 TEMECOLA $ZSTER CITIES FY 01/02 SPONSORSHIP AGREEMENT 001.101.999.5280 10,000.00 10,000.00 75499 03/07/02 TENECULA VALLEY POP gAR REFUND:SEC.DEPOSiT:NS02-O033 190.2900 100.00 100.00 75500 03/0?/02 00~274 TENECULA VALLEY SECURIT CRC LOCKSMITH SERVICES 190.182.999.5212 135.00 135.00 ;5501 03/07/02 004403 TODAY VERTICALS CiTY HALL VERT BLZNDS:CASHZER 340.199.T01.5416 91.59 91.59 75502 03/07/02 000319 TORARK SPORTS IRC SAF-T-SLiDER FIRST I~:SE SET 190.187.999.5301 945.00 75502 03/07/02 000319 TONARK SPORTS iNC FREIGHT 190.187.999.5301 85.05 75502 03/07/02 000319 TONARK SPORTS iRC SALES TAX 190.187.999.5301 73.24 1,103.29 7~503 03/07/02 000320 TOk~E CENTER STATIONERS P~ ADNIN OFFICE SUPPLIES 001.16~.60~.5220 122.98 122.98 75504 03/07/02 000~59 TUNBLE JUNGLE FITNESS G TCSD ZNSTRUCTOR EARNINGS 190.183.999.5330 308.00 75504 03/0?/02 000459 TUNBLE JUNGLE FITNESS G TCem iNSTRUCTOR EARNINGS 190.183.999.5330 448.00 75504 03/07/02 000459 TUNBLE JUNGLE FITNESS G TCSD INSTRUCTOR EARNZRGS 190.183.999.5330 358.40 75504 03/07/02 0004,59 TUNBLE JUNGLE FITNESS G TCSO iNSTRUCTOR EANN~NGS 190.183.999.5330 115.20 75504 03/07/02 000459 TUNBLE JUNGLE FITNESS G TCSU iNSTRUCTOR EARNINGS 190.183.999.5330 ~30.40 75504 03/07/02 000459 TUNBLE JUNGLE FITNESS G TCSU iNSTRUCTOR EARNINGS 190.183.999.5330 115.20 75504 03/07/02 000459 TUNBLE JUNGLE FiT#ESS G TCSO INSTRUCTOR EARNINGS 190.183.999.5330 192.00 7550~ 03/07/02 000459 TUNBLE JUNGLE FITNESS G TCSD INSTRUCTOR EARNINGS 190.183.999.5330 264.00 75504 03/0?/02 000459 TUNBLE JUNGLE FITNESS G TCSD iNSTRUCTOR EARNINGS 190.183.999.5330 308.00 2,339.20 75505 03/0?/02 0040~6 U S FLAG ET]GUETTE FLAG ETIQUETTE SERVICE 001.120.999.5250 60.00 60.00 75506 03/0?/02 004504 VAiL RANCH SELF STORAGE DOCt~ENT STORAGE:RECORDS NGNT 001.120.999.5277 77.00 77.00 75507 03/07/02 004368 VALi COOPER & ASSUCZATE JAN TENP HELP SVCS:C.LARSON 001.163.999.5118 13,120.00 13,120.00 75508 0,t/07/02 004261 VERIZON CALIFORNIA FEB XXX-9897 GENERAL USAGE 320.199.999.5208 96.03 96.03 75509 03/07/02 001~,2 ~LI(IE SANITARY SUPPLY i CRC gAZNTERANCE SUPPLIES 190.182.999.5212 110.98 75509 03/07/02 001342 gAXIE SANITARY SUPPLY ] NAZNTENANCE $UPPLiES~ CRC 190.18~.999.5212 31.14 142.12 75510 03/07/02 003730 M~$T COAST ARBORISTS iN CITYWiDE TREE TRZRNZNG NRiNT 001.164.601.5402 27,357.00 75510 03/0?/02 003730 gl[ST COAST ARBORZSTS ZN CZTYWiOE TREE TRIMMING MAiNT 001.164.601.5402 21,990.00 75511 03/0?/02 004826 ~ST COAST OVERHEAD 000 RES iNPRV PRISM: APPERLEY 165.199.813.5804 ~/~0.00 640.00 75512 03/0?/02 000339 gl;ST PUBLISHING C~IPANY CiTY HALL LEGAL PUBLICATIONS 001.120.999.5228 164.33 164.33 75513 03/07/02 gESTCOAST HOTEL NOVELL CF:TH:3/l?-22:3234,qVL50 320.199.999.5261 572.68 57~.68 75514 03/0?/02 002109 WHITE CAP INDUSTRIES IN Pg RAiNT ,SUPPLZES 001.164.601.5218 192.51 192.51 VOUCHRE2 CITY OF TEHECULA PAGE 10 03/07/02 08:55 VOUCHER/CHECK REGISTER FOR ALL PERIOUS VOUCHER/ CHECK CHECK VENDOR VENDOR ]TEN ACCOUNT ]TEN CHECK NURSER DATE NUNBER NA~E DESCR [PT ](IN NU#BER A#OtJNT A#~UNT 75515 03/0'[/02 003756 gHITE HOUSE SANITATION FEB CLEANING SVC:BTRFLD STAGE 190.180.909.5250 50.00 50.00 75516 03/0?/02 0003/,1 WlLLDAN ASSOCIATES INC TRF ERG ~RKSNP:3/Og:H.K./O.C. 001.1(~..002.5261 14,0.00 l&O.O0 75517 03/07/02 0o/,887 WILLIAH # VANDLING, REIHBURSEHENT/ATTORNEY FEES 165.199.823.5700 6,358.62 6,358.62 75518 03/07/02 WILSON, DOROTHY G. REFUND:ROON RENTAL 190.182.4,990 10.00 75518 03/0?/02 ~ILSON~ DOROTHY G. REFUND:SEC.DEPO~IT:#SO0-2983 190.2900 100.00 110.00 75519 03/07/02 00034`8 ZIGLER~ GAIL REZRB:SUPPLIES/NPSC GRAND OPEN 190.181.999.5301 187.85 187.85 ?5520 03/07/02 003~ ZOgOS, TED REDIAN REIRBURSE#ENT'AGREE#ENT 210.165.730.5804. 4`5,44`6.86 4`5,4/*6.86 TOTAL CHECKS 4,23,992.59 VOUCHRE2 CITY OF TE#ECULA PAGE 03/14/02 17:49 VOUCHER/CHECK REGISTER FOR ALL PERIOOS FUND TITLE /ddOUNT 001 GENERAL FUND 252,204.~1 165 RDA DEV- LOU/NO0 SET ASIDE 4,~61.13 190 COI4HUNITY SERVICES DISTRICT 76,229.01 192 TCSD SERVICE LEVEL B 38,138.17 193 TCND SERVICE LEVEL C 9,072.56 104. TCND SERVICE LEVEL D 457.41 210 CAPITAL INPROVEHENT PROJ FUND 3,081.43 280 REDEVELOPNENT AGENCY * CIP 5oZ16.62 300 INSURANCE FUND 97,271.00 310 VEHICLES FUND 225.00 320 INFORNATION SYSTEHS 10~790.86 330 SUPPORT SERVICES 1,554.04 3/*0 FACILITIES 4,36.3.88 TOTAL 502,~5.5~ VOUCHRE2 CITY OF TEMECULA PAGE 03/16/02 17:69 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITEM CHECK #U#BER DATE RU#BER NAJAE DESCRIPTION #UMBER ANOU#T ANOUHT 010 03/1&/02 000(~.2 TEMECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 001.1020 3,999.95 010 03/14/02 0006/,2 TEMECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 165.1020 37.50 010 03/14/02 0006/*2 TE#ECULA CITY FLEXIBLE EMPLOYEE CONTR]BUT]OR TO FLEX 190.1020 555.00 010 03/14/02 0006/*2 TERECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 193.1020 11.25 010 03/14/02 0006/*2 TE#ECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 192.1020 1.25 010 03/14/02 0006/,2 TEHECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 194.1020 3.75 010 03/14/02 000(~2 TEMECULA CITY FLEXIBLE EMPLOYEE CORTRIBUTIOR TO FLEX 280.1020 12.50 010 03/14/02 0006~2 TEMECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 330.1020 /,66.66 010 03/14/02 0006/,2 TEMECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 320.1020 327.75 010 03/14/02 000(~.2 TEMECULA CITY FLEXIBLE EMPLOYEE CONTRIBUTION TO FLEX 340.1020 18.75 5,43~.3~ 37~71 03/14/02 0002~6 PERS EMPLOYEES~ RETIRE 000246 PERS RET 001.2390 28,013.25 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 0002/,6 PERS RET 165.2390 669.01 37~71 03/14/02 0002/,6 PERS EMPLOYEES' RETIRE 000246 PERS RET 190.2390 5,290.70 37~71 03/14/02 000246 PERS EMPLOYEES~ RETIRE 000246 PERS RET 192,2390 12.0~ 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 PERS RET 193.2390 491.42 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246,6 PERS RET 194.2390 105.0~ 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246*6 PERS RET 280.2390 289.21 37571 03/14/02 0002~6 PERS EMPLOYEES' RETIRE 000246 PERS RET 300.2390 139.55 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 PERS RET 320.2130 26.51 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 PERS RET 320.2390 966.77 37571 03/14/02 000246 PERS ENPLOYEES' RETIRE 000246 PERS RET 330.2390 223.51 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 PERS RET 3/*0.2390 596.88 37571 03/14/02 000246 PERS EMPLOYEES~ RETIRE 000246 PERS-PRE 001.2130 182.91 37~71 03/14/02 OOO246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 001.2390 101.01 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 165.2390 1.87 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 190.2390 20.70 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 192.2390 .05 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 193.2390 2.28 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVZVER 19~.2390 .36 37571 03/14/02 000246 PERS EMPLOYEES~ RETIRE 000246 SURVIVOR 280.2390 .92 37571 03/14/02 000246 PERS ENPLOYEES~ RETIRE 000246 SURVIVOR 300.;390 .46 37571 03/14/02 000246 PERS EMPLOYEES~ RETIRE 000246 SURVIVOR 320.2390 3.72 37571 03/1/*/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 330.2390 1.39 37571 03/14/02 000246 PERS EMPLOYEES' RETIRE 000246 SURVIVOR 3/*0.2390 2.65 37,142.23 37757 03/14/02 000245 PERS (HEALTH I#SUR. PRE 000245 BLSHIELD 001.2090 154.90 37757 03/14/02 000245 PERS (HEALTH I#SUR. PRE 000245 BLSHIELO 190.2090 48.85 377~7 03/14/02 000245 PERS (HEALTH I#SUR. PRE 000245 BLSHIELD 3~0.2090 24.15 37757 03/14/02 000245 PER$ (HEALTH INSUR. PRE 000245 HELTHNET 001.20~0 213.70 377~? 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 190.2090 62.9~ 37757 03/14/02 000245 PERS (HEALTH INBUR. PRE 000245 HELTHRET ~ 3~0.2090 11.18 37'/57 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 KAISER 001.2090 57.10 37757 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 PA(CARE 001.2090 380.52 37757 03/14/02 000245 PERS (HEALTH I#SUR. PRE 000245 PERS (HO 001.2090 297.00 37757 03/14/02 000245 PERS (HEALTH ]#SUR. PRE 000245 PERS (HO 190.2090 121.0~ 37757 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 PERS REV 001.2090 1,371.38- 37757 03/14/02 000245 PERS (HEALTH IHSUR. PRE 000245 BLSHIELD 001.2090 1,621.72 37757 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 BLSHIELD 190.2090 1,359.45 37757 03/14/02 00O245 PERS (HEALTH INSUR. PRE 000245 BLSHIELD 3~0.2090 257.51 377~7 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 001.2090 4,887.17 VOUCHRE2 CITY OF TENECULA PAGE 2 03/14/02 17:49 VOUCHER/CHECK REGISTER FOR ALL PER]GOS VOUCHER/ CHECK CNECIC VE#DOR VENDOR ITEN ACCOUNT ITEN CHECK NUNBER DATE NUHBER NAHE DESCRIPTION NUNBER AH~U#T AHGUNT 3~57 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 190.2090 1,515.50 37757 03/14/02 000245 PENS (HEALTH INSUR. PRE 000245 HELTHNET 193.2090 63.56 37757 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 HELTH#ET 19~.2090 31.78 37757 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 340.2090 687.98 37757 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 KAISER 001.2090 2,717.14 37757 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 PACCARE 001.2090 8,183.47 37757 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 PACCARE 165.2090 358.15 37757 03/14/02 000245 PERS (HEALTH IHSUR. PRE 000245 PACCARE 190.2090 410.96 37757 03/14/02 000245 PERS (HEALTH INSUR. PRE 000245 PACCARE 280.2090 119.39 37757 0~/1&/02 000245 PERS (HEALTH I#SUR. PRE 000245 PC 001.2090 16.00 37757 03/14/02 000245 PERS (HEALTH I#SUR. PRE 000245 PERS CHO 001.2090 37757 03/14/02 000245 PERS (HEALTH IHSUR. PRE 000245 PERS CHO 190.2090 595.88 3T757 03/14/02 000245 PERS (HEALTH IHSUR. PRE 000245 PERS CHO 280.2090 20.98 37757 03/14/02 000245 PERS (HEALTH Z#SUR. PRE 000245 PER$ DED 001.2090 1,428.G9 37757 03/14/02 000245 PERS (HEALTH I#SUR. PRE 000245 PERS-ADH 001.2090 178.61 37?57 03/14/02 000245 PER$ (HEALTH IHSUR. PRE 000245 U#! 001.2090 3~928.63 3T757 03/14/02 000245 PERS (HEALTH IHSUR. PRE 000245 UN! 190.2090 775.61 37?57 03/14/02 000245 PERS (HEALTH Z#SUR. PRE 000245 U#I 193.2090 168.61 37757 03/14/02 000245 PERS (HEALTH IHSUR. PRE 000245 UNI 330.2090 8,1..30 33,453.59 553716 03/14/02 000283 INSTATAX (IRS) 000283 FEDERAL 001.2070 24,399.17 553716 03/14/02 000283 INSTATAX (IRS) 000283 FEDERAL 165.2070 ~82.87 553716 0~/1~/02 000283 INSTATAX (IRS) 00028:3 FEDERAL 190.2070 5,712.94 553716 03/14/02 00028~ INSTATAX (IRS) 000283 FEDERAL 192.2070 18.~. 553716 03/14/02 000283 INSTATAX (IRS) 00028~ FEDERAL 193.2070 470.99 553716 03/14/02 000283 INSTATAX ([RS) 000283 FEDERAL 194.2070 138.15 553716 03/14/02 000283 Z#STATAX (IRS) 000283 FEDERAL 280.2070 183.11 553716 03/14/02 000283 INSTATAX (IRS) 000283 FEDERAL 300.2070 78.18 553716 03/14/02 000283 I#STATAX (IRS) 000283 FEDERAL 320.2070 553716 03/14/02 000283 I#STATAX (IRS) 000283 FEDERAL 330.2070 258.65 553716 03/14/02 000283 [NSTATAX (IRS) 000283 FEDERAL 340°2070 570.06 553716 03/14/02 000283 IgSTATAX (IRS) 000283 #EDICARE 001.2070 6,537.22 553716 03/14/02 000283 INSTATAX (IRS) 000283 HEDICARE 165.2070 165.90 553716 03/14/02 000283 INSTATAX (IRS) 000283 NEDICARE 190.2070 1,630.77 553716 03/14/02 000283 IHSTATAX (IRS) 000283 #EDICARE 192.2070 2.80 553716 03/14/02 000283 INSTATAX (IRS) 000283 FEDICARE 193.2070 130.18 553716 03/14/02 000283 INSTATAX (IRS) 000283 I~DICARE 194.2070 23.65 553716 03/14/02 000283 INSTATAX (IRS) 000283 HEDZCARE 280.2070 74.21 553716 03/1~/02 000283 I#STATAX (IRS) 000283 ~EDICARE 300.2070 32.49 553716 03/14/02 000283 INSTATAX (IRS) 000283 F, EDICARE 320.2070 265.07 553716 03/14/02 000283 INSTATAX (IRS) 000283 #EDICARE 330.2070 72.28 553716 03/14/02 000283 INSTATAX (IRS) 000283 NEDICARE 340.2070 162.53 42,~85.20 553757 03/14/02 00~ INSTATAX (EDD) 000/~ SDI 001.2070 71.80 553757 03/14/02 0004~ INSTATAX (EDD) 000~4 SDI 165.2070 4.99 553?57 03/14/02 OOIY~4 INSTATAX (EDD) 000/~, SDI 190.2070 121.97 553?57 03/14/02 000~ INETATAX (EDD) 000/~ SDI 193.2070 3.54 553?57 03/14/02 000/~ I#STATAX (EDD) O00z~ SD! 280.2070 1.19 553?57 03/14/02 000/~ INSTATAX (EDD) 000~,~ SD! 330.2070 6.23 553757 03/14/02 O004&& INSTATAX (EDD) 000~ SDI 340.2070 3.90 553757 03/14/02 O00~J, INSTATAX (EDD) 0004,~ STATE 001.2070 6,809.90 VOUCHRE2 CITY OF TE#ECULA PAGE 3 03/14/02 17:49 VOUCHER/CHECK REGISTER FOR ALL PERIOOS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEN ACCOUNT ITE# CHECK NUHBER DATE NUHBER NANE DESCEIPTIOR NUNBER ANOUNT ANOUNT 553757 03/14/02 000~ INSTATAX (EDD) 000,':~ STATE 165.2070 128.99 553?57 03/14/02 0OO444 ]NSTATAX (EOD) 000~:~ STATE 190.2070 1,347.31 553?57 03/14/02 000~+4 INSTATAX (EDD) 0004~ STATE 192.2070 5°90 553?57 03/14/02 000444 INSTATAN (EDD) 0004/~* STATE 193.2070 110.13 555?57 03/14/02 00(~ INSTATAX (EDD) 000~ STATE 194.2070 43.87 553?57 05/14/02 000444 INSTATAX (EDD) 0004/~. STATE 280.2070 44.45 553?57 03/14/02 000~4~ ZNSTATAX (EDD) 000444 STATE 300.2070 19.15 553?57 03/14/02 0OO444 INSTATAX (EDD) O004~4 STATE 320.2070 261.04 553?57 03/14/02 000444 INSTATAX (EDD) 0004~ STATE 330.2070 64.40 553?57 03/14/02 000~4 INSTATAN (EDD) 000444 STATE 340.2070 136.3g g,185.15 ?5524 03/14/02 004858 19th HOLE GOLF CARTS REPAZR POLZCE UTILITY VEHICLE 001.170.~.5214 ?5524 03/14/02 004858 1Nth HOLE GOLF CARTS CREDZT:OVRCHRGED SALES TAX 001.170.999.5214 1.00- 548.00 ?5525 03/14/02 A B C DZSTRIBUTING JUL 4TH JUDGES/DIGN]TANY GIFTS 190.180,999.5301 128,~ 128.72 ?5526 03/14/02 003552 A F L A C 003552 CANCER 001.2330 330.10 ?5526 03/14/02 003552 A F L A C 003552 CANCER 190.2330 14.34 ?5526 03/14/02 003552 A F L A C 003552 CANCER 193.2330 14.3~ ?5526 03/14/02 003552 A F L A C 003552 CANCER 194.2330 4.78 ?5526 03/14/02 003552 A F L A C 003552 CANCER 3~0.2330 14.3~ ?5526 03/14/02 003552 A F L A C 003552 EXP PROT 001.2330 143.30 ?5526 03/14/02 003552 A F L A C 003552 EXP PROT 190.2330 55.80 ?5526 03/14/02 003552 A F L A C 003552 EXP PROT 320.2330 27.90 ?5526 03/14/02 003552 A F L A C 003552 HOSP IC 001.2330 17.50 ?5526 03/14/02 003552 A F L A C 003552 STD 001.2330 585.60 ?5526 03/14/02 003552 A F L A C 003552 STD 190.2330 177.60 ?5526 03/14/02 003552 A F L A C 0035~2 STD 193.2330 9.60 ?5526 03/14/02 003552 A F L A C 003552 STD 194.2330 3.20 ?5526 03/14/02 003552 A F L A C 003552 STD 340.2330 20.80 1,419.20 ?5527 03/14/02 001523 A # 0EST COHPANY, INC. 1YR SUSSCRIPTIOR:FIIIARCE 300.199.999.5228 129.95 129.95 ?5528 03/14/02 000745 A T & T WIRELESS SERVZC CELLULAR PHONE SVCS:POLICE DPT 001.170.999.5208 3?,3.32 373.32 ?5529 03/14/02 000116 A V P VISION PLANS 000116 AVP 001.2310 707.15 ?5529 03/14/02 000116 A V P VISION PLANS 000116 AVP 165.2310 17.60 ?5529 03/14/02 000116 A V P VISION PLANS 000116 AVP 190.7310 95.17 ?5529 03/14/02 000116 A V P VISIOX PLANS 000116 AVP 193.2310 11.73 ?5529 03/14/02 000116 A V P VISION PLANS 0001~6 AVP 194.2310 1.68 ?5529 03/14/02 000116 A V P VISION PLANS 000116 AVP 280.2310 5.86 ?5529 03/14/02 000116 A V P VISION PLANS 000116 AVP 330.7310 5.58 ?5529 03/14/02 000116 A V P VZSZON PLANS 000116 AVP ~,0.7310 42.73 ~87.00 ?5530 03/14/02 000434 ACCELA.COR PER#ZTS+ TSAINING:3/19-22:VW 001.161.999.5261 1,000.00 1,600.00 75531 03/14/02 0048~0 ADVANCED OFFICE $OLUTIO COLOR PRINTER #NTC:OLD TWN STN 001,170,999.5250 99.00 75531 03/14/02 004840 ADVANCED OFFICE $OLUTIO SERVICE CALL EXPENSE 001.170,999.5250 15.00 75531 03/14/02 0048/*0 ADVANCED OFFICE SOLUTIO REPAIR PANTS FOR COLOR PRINTER 001.170.~.5250 69.19 183.19 ?5532 03/14/02 004240 ANERICAN FORENSIC NURSE CITY LIHITS BLO00 DRA~S-PI)/CHP 001.170,999.5328 62.00 VOUCHRE2 CITY OF TENECULA PAGE 03/14/02 17:&9 VOUCHER/CHECK REGISTER FOR ALL PERICOS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEN ACCOUNT ]TEN CHECK NU#SER DATE HU~4BER NAJ4E DESCRIPTION NU#BER AHOUNT AHOUNT 7~532 03/14/02 00&240 ANERICAN FORERSIC NURSE CITY LINITS BLOCO DRAliS-PO/CHP 001.170.999.5328 125.00 187.00 7~533 03/14/02 000936 AHERICAN RED CROSS LIFEGUARD TRAINING PIANUALS 190.186.9~9.5261 420.00 75533 03/14/02 000936 AHERZCAN RED CROSS E#ERGENCY RESPONSE NANUALS 190.186.99~.5261 ~80.00 75533 03/14/02 000936 N~ERICAN RED CROSS pARTICIPANT CERTIFICATE FEE 190.186.90~.5261 120.00 1,020.00 7553~ 03/14/02 003285 AHERIPRIDE UNIFORN SERV FEB FLOOR NAT & TO~EL RENTAL 340.199.701.5250 9~.40 ~5~ ~/14/02 003285 ~ER[PRIDE UN]F~ SERV FEB FL~ ~T & T~L RENTAL ~0.1~.~2.5250 ~.20 ~5~ 03/14/02 003285 ~ERZPR]DE UNIFORN $ERV FEB_FL~ ~T & T~L RENTAL 1~.181.~.5250 51.~ ~5~ 03/14/02 003~ ~R]PR[DE UNIF~N ~RV FEB FL~ ~T & T~L RENTAL 1~.1~.~.5250 ~.2~ ~5~ 03/14/02 0032~ ~ERIPRIDE UN~F~ GERV FEB FL~ ~T & T~L RENTAL 1~.1~.~.5250 ~.~ ~5~ 03/14/02 0~285 ~RIPRIDE UNIF~ SERV FEB FLOR ~T & T~L RENTAL 1~.185.~.5250 31.~ ~5~ 03/14/02 003285 ~RIPRIDE ~FO~ SERV FEB UN~F~ RE~TAL ~ MgTC 001.1~.~1.5~&3 112.00 ~5~ 03/14/0~ 003205 ~ERZPR~DE UNIF~ SERV FEB UBIF~ RE~TAL TC~ NNTC 1~.1~.~.52a3 101.16 5~.~ 75535 03/14/02 003865 ANDY$ GLASS RES IMPR PROR:KOBALLA,NARLO 165.199.813.5804 118.00 . 118.00 75536 03/14/02 000101 APPLE ONE, INC. TE#P HELP WE 02/09 ROSS 330.199.999.5118 171.60 75536 03/14/02 000101 APPLE ONE, INC. TENP HELP g/E 03/02 SRARCY 001.140.90~.5118 7'31.86 75537 03/14/02 003485 AUDIO VIDEO SUPPLY I#C AUDIO VIDEO SALES/SVCS:INF SYS 320.199.999.5210 289.91 289.91 75538 03/14/02 000622 RANTA ELECTRIC-REFRIGER SALES TAX 190.180.999.5212 15.70 75538 03/14/02 000622 BANTA ELECTRIC-REFRIGER INSTALL UNDERGROUND UIRES:LGHT 190.180.90~.5212 298.50 314.20 75539 03/14/02 003126 BUONGAARDEN, DENNIS TC~D INSTRUCTOR EARNINGS 190.183.999.5330 369.60 369.60 75540 03/14/02 003455 BROADCAST KUSIC INC NUSIC LICENSE AGRI~T END 12/01 280.199.999.5362 83~.05 836.05 75541 03/14/02 003255 BUSH, RAY ENTERTAINMENT:NPSC RE'OPENING 190.181.~.5301 SO0.O0 500.00 75542 03/14/02 003138 CAL NAT P~IPATCHITRUCKNATERIALS 001.164.601.5218 1,705.94 1,?05.9~ 7554,3 03/14/02 000128 CAL SURARCE ASSOCIATES PROPERTY INSURANCE RENERAL 300.1655 41,928.00 75543 03/14/02 000128 CAL SURANCE ASSOCIATES INSURAXGE RENEk~AL POLICY 300.1655 10,753.00 75543 03/14/02 000128 CAL SURANCE ASSOCIATES RENERAL POLICY:2002/03 300.1655 4,60~.00 75543 03/14/02 000128 CAL SURANCE ASSOCIATES EARTHGUAKE/FLO~O RENEkLRL 02-03 300.1655 2,478.00 75543 03/14/02 000128 CAL SURA~CE ASSOCIATES EO & FLOCO IHSURA~CE RENEUAL 300.1655 36,440.02 96,208.02 7534/+ 03/14/02 001034 CALIF BU]LDIRG OFFICIAL CALBO ABN D]NNER:3/15:STAFF 001.162.999.5261 250.00 250.00 75545 03/14/02 003554 CA)L~A LIFE ASSURANCE C 003554 LZFE INS 001.2360 806.00 75545 03/14/02 003554 CA~NADA LIFE ASSURANCE C 003554 LIFE INS 165.2360 15.50 75545 03/14/02 003554 CANADA LIFE ASSURANCE C 003554 LIFE INS 190.2360 172.46 75545 03/14/02 003554 CANAOA LIFE ASSURANCE C 003554 LIFE INS 192.2360 .39 75545 03/14/02 003554 CA~AOA LIFE ASSURANCE C 003554 LIFE IHS 193.2360 18.99 75545 03/14/02 003554 CARAOA LIFE ASSURANCE C 003554 LIFE IHS 194.2360 3.09 75545 03/14/02 003554 CANAOA LIFE ASSURANCE C 003554 LIFE IHS 280.2360 7.75 75545 03/14/02 003554 CANADA LIFE ASSURANCE C 003554 LIFE IHS 300.2360 3.88 75545 03/14/02 003554 CAtLaDA LIFE ASSURANCE C 003554 LIFE IHS 320.2360 31.00 75545 03/14/02 003554 EAkU~A LIFE ASSURANCE C 003554 LIFE INS 330.~360 11.62 VOUCHRE2 CiTY OF TENECULA PAGE 5 03/14/02 1;':49 VOUCHER/CHECK REGISTER FOR ALL PERICOS VOUCHER/ CHECK CHECK VEHDOR VEHDOR ITEM ACCOUNT iTEM CHECK NUNBER DATE #UMBER NAHE DESCRiPTiON HUNBER A~OU#T ANOUHT 75545 03/14/02 003554 CANADA LIFE ASSURANCE C 003554 LIFE INS 3~0.2..'.'.'.'.'.'~0 22.0? 1~092.?~ 75546 03/14/02 000131 CARL gARREN & COMPARY I CLAIM N)JUSTER SERVICES 300.199.999.5205 ~81.79 ~81.79 75547 03/14/02 002534 CATERERS CAFE REFRESflNENTS:VOLUNTEER LUHCHOR 190.183.999.5374 1,362.23 75547 03/14/02 002534 CATERERS CAFE REFRESHMENT:iNTERVIEW PANEL 001.150.999.5260 53.88 75547 03/14/02 00253~ CATERERS CAFE REFRESHNENTS:C.M.BUSIHESS MTGS 001.110.999.5260 10.85 7~547 03/14/02 00253~ CATERERS CAFE REESHMNTS: gRKIHG LUHCHEOR 001.171.999.5260 7.78 1,434.7& 7~548 03/14/02 CHARETTE, DEBORA REFUND:EX-BiRCH AQUARIUI4 SCRIP 190.183.4986 39.00 39.00 75549 03/14/02 000137 CHEVRON U S A IRC FUEL EXPENSE FOR CITY VEHICLES 001.170.999.5262 131.3~ 75549 03/1&/02 000137 CHEVRON U S A iNC FUEL EXPENSE FOR CITY VEHICLES 001.111.999.5262 15.47 7~549 03/14/02 000137 CHEVRON U S A IRC FUEL EXPENSE FOR CITY VEHICLES 001.110.999.5263 71.0~ 217.85 75550 03/14/02 00~823 CINEMA GUILD ]NC, THE VIDEOS ARD SUPPL]ES:NUSEUN 190.185.999.5301 107.95 107.95 75551 03/14/02 000912 CITY CLERKS ASS# OF CAL A~NL CONF:JORES/BALLREICH:4/17 001.120.999.5258 6~0.00 620.00 ?5552 03/14/02 00~05 COMNUHITY HEALTH CH~J~IT 00/~,05 CHC 001.2120 87.00 75552 03/14/02 00~,05 CONNUHITY HEALTH CHARIT OOZ~O5 CHC 1~.2120 ~552 03/I~/02 00~05 ~NITY H~LTH C~RIT 0~05 CHC 192.2120 .05 ~552 03/14/02 0~405 ~NITY H~LTH C~ZT 0~05 CHC 193.2120 1.19 ~552 03/14/02 0~05 ~H~TY H~LTH C~ZT 0~05 CHC 1~.2120 1.9r ~55z 03/14/02 0~05 C~ITY HEALTH C~IT 0~05 CHC 330.2120 12.50 ~552 03/14/02 0~05 C~NZTY HEALTH C~RIT 0~05 CHC ~0.2120 .~ 1~.50 75553 03/14/02 0004~2 COMPUTER ALERT SYSTEMS ALARM SYS NOUIFICATION:NPSC 210.190.163.580~ 65.00 65.00 ?5554 03/14/02 002631 COUHT$ UNLINITED INC TRAFFIC COUNT DATA:VARIOUS 001.16~.602.5250 650.00 r5554 03/14/02 002631 COURTS UHLIMITED INC TRAFFIC COUHT DATA:VARIOUS 001.16~.602.5250 1,800.00 2,450.00 75555 03/14/02 001393 DATA TICKET iHC JAR 02 CITATION PROCESSING 001.170.999.5250 3~3.14 3~3.14 75556 03/14/02 DELRIO~ LINDA REiNS:FAC INPR PROM:CITY PRMT 280.1~9.813.580~ 190.00 190.00 7555? 03/14/02 00/,192 OOUNS CO~,qERCIAL FUELIH FUEL FOR'CITY VEHICLES 001.170.999.5262 56.09 75557 03/14/02 00~192 OOtaS COMHERCIAL FUELIN FUEL FOR CITY VEHICLES 001.161.999.5263 281.45 75557 03/14/02 00~192 DOUNS COMMERCIAL FUELIH FUEL FOR CiTY VEHICLES 190.180.999.5263 23.67 361.21 75558 03/14/02 001380 E S i EMPLOYMENT SERVZC TENP HELP W/E 02/22 NANSEN 001.16~.60~.5118 162.12 75558 03/14/02 001380 E S i EMPLOYMENT SERVZC TEMP'HELP W/E 02/22 HARSE# 190.180.999.5118 ~6.32 75558 03/14/02 001380 E S I EMPLOYMENT SERVIC TENP HELP U/E 02/22 HAWSE# 001.161.999.5118 1,~68.01 75558 03/14/02 001380 E S I EMPLOYME#T SERVIC TEMP'HELP U/E 02/22 HARSEN 001.120.999.5118 7/,6.91 2,223.36 75559 03/14/02 000523 EASTERN MUNICIPAL MATER 95366-02 DIEGO DR LDSCP 193.180.999.5240 49~.29 494.29 75560 03/14/02 003223 EDAM IgC SEPT BIOLOGIST SVCS:LG CANYON 001.16~.601.527~ 1,57~.00 1,575.00 7S561 03/14/02 000161 EDEH SYSTEMS Igc INFORUN GOLD UPGRAOE:PRJT M~T 320.1980 593.7S 75561 03/14/02 000161 EOE# SYSTEMS IHC IHFORUg GOLO UPGRADE:EXPEHSES 320.1980 629.47 1,223.22 VOUCHRE2 CITY OF TENECULA PAGE 6 03/14/02 17:49 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ITE# CHECK NLD4BER DATE NU#BER N~E DESCRIPTION HUMBER AMOUNT A~3UHT 75562 0]/14/02 EMERGENCY MEDICAL SERVI CHILD PASSENGER GE#:4/2-6:STAF 001.170.999.5261 175.00 175.00 7~563 05/14/02 003171 EMPIRE ECORORICS LLC ADDTL MRKT $TUOIES:HARVESTOR 001.26~] 4,750.00 75563 03/14/02 003171 EMPIRE ECOHORICS LLC MRKT A~SORPTIOR ANALYSIS:IdOLF 001.2(~,~ 9,000,00 75563 03/14/02 003171 EMPIRE ECONORIC$ LLC ADDTL STUOIE$ FOR ~dOLF CREEK 001.26Z~ 1,000.00 14,7'~0.00 7556~ 0]/14/02 002939 EHVIRORMEHTAL SYSTEMS R ~ OBJECTS CONSULTIRG SVCS 001.161.610.5248 819.50 819.50 73565 03/14/02 000165 FEDERAL EXPRESS IRC EXPRESS HAIL SERVICES 320.199.999.5230 12.42 75565 03/14/02 000165 FEDERAL EXPRESS INC EXPRESS NAIL SERVICES 001.161.999.5230 19.95 75565 03/14/02 000165 FEDERAL EXPRESS Igc EXPRESS NAIL SERVICES 001.171.999.5230 15.67 ~8.0~ 7~566 0]/14/02 000166 FIRST AMERICAN TITLE CO CLOSING COBT:28747 PUJOL ST. 165.199.82~.5700 997.38 997.~8 75567 03/14/02 00]~7 FIRST BAMKCARD CENTER XX-11~] PARKER:PROF MTG IN TgN 190.180.999.5260 61.03 61.0] 75568 03/14/02 001135 FIRST CARE INDUSTRIAL M EMPLOYEE PHYSICALS & DRUG TEST 001.150.999.5250 155.00 155.00 75569 03/14/02 00~385 FRANCHISE TAX BOARD 2001 CALIF EXEMPT TAX RETURH 001.140,999.5226 25.00 25.00 75570 0]/14/02 003815 GFB FRIEDRICH & ASSOCIA JAN PRGSS:NARGARITA RD P~99-01 210.165.706.5802 143.86 75570 03/14/02 003815 GFB FRIEDRICH & ASSUCIA JAN PRGSS:NANGANITA lad P~99-01 210.165.71].5802 13.6~ 75570 03/14/02 003015 GFB FRIEDRICH & ASBOCIA JAN PRGSS:MARGARITA ND P299-01 210.165.706.5802 779.56 75570 03/14/02 003815 GFB FRIEORICH & ABBOCIA JAM PRGSS:NARGARITA RD PU99-01 210.165.713.5802 75.9~ 75570 03/14/02 00~815 GFB FRIEDRICH & ASSUClA CREDIT:OVRCHRG SUB*CONSULTANT 210.165.706.5802 191.81- 75570 03/14/02 00~815 GFB FRIEDRICH & ASSUCIA CREDIT:OVRCHRG SUB-CONSULTANT 210.165.713.5802 18.19- 801.00 75571 03/14/02 00017/' GLEHHIES OFFICE PRODUCT OFFICE SUPPLIES:CITY MANAGER 001.110.999.5220 ~6.~6 75571 03/14/02 000177 GLEHHIES OFFICE PROOUCT OFFICE SUPPLIES:CITY CLERK 001.120.999.5220 105.66 75571 0]/14/02 000177 GLEHNIES OFFICE PRODUCT OFFICE SUPPLIES:HLIHAN RESOURCE 001.150.999.5220 8.07 75571 03/14/02 000177 GLEANIES OFFICE PRODUCT OFFICE SUPPLIES:POLICE OEPT 001.170.999.5220 200.28 75571 03/14/02 oo01rr GLE#MIES OFFICE PRODUCT OFFICE SUPPLIES:POLICE OEPT 001.170.999.5220 295.29 75571 03/14/02 000177 GLENNIES OFFICE PRODUCT OFFICE SUPPLIES:FIRE DEPT 001,171.999.5220 135,9~ 75571 03/14/02 000177 GLENNIES OFFICE PRODUCT OFFICE SUPPLIES:FIRE OEPT 001.171.999.5220 401.72 7~571 03/14/02 000177 GLE#NIES OFFICE PRODUCT OFFICE SUPPLIES:RDA-LOg/I~O 165.199.999.5220 65.56 75571 03/14/02 000177 GLE~NIES OFFICE PRODUCT OFFICE SUPPLIES:RDA*LOU/NOU 280.199.999.5220 65.55 75571 03/14/02 000177 GLENRIES OFFICE PRODUCT OFFICE SUPPLIES:ECO DEVEL 001.111.999.5220 165.72 1,480.25 75572 03/14/02 000175 GOVERNMENT FIHAHCE OFFI GAAFR REVIEg PERIOD 5/02-4/0] 001.140.999.5226 50.00 50.00 75573 03/14/02 002107 HIGHNARK INC 002107 VL REVER 001.2510 250.15- 75573 03/14/02 002107 HIGHNARK INC 002107 VOL LIFE 001.2510 222.66 75573 03/14/02 002107 HIGHMANK INC 002107 VOL LIFE 190.2510 15.38 75573 03/14/02 002107 HIGHIqARK IgC 002107 VOL LIFE 193.2510 5.73 75573 03/14/02 002107 HIGHNAMK IRC 002107 VOL LIFE 194.2510 .75 75573 0]/14/02 002107 HIGHNARK IRC 002107 VOL LIFE 300.2510 .79 75573 0]/14/02 002107 HIGHKARK I#C 002107 VOL LIFE 3~0.2510 4.8& 75573 03/14/0E 002107 HIGHK~K I#C 002107 VL ADVAN 001.2510 255.65 75573 03/14/02 002107 HIGHNARK INC 002107 VOL LIFE 001.2510 228.15 75573 03/14/02 002107 HIGHK~RK INC 002107 VOL LIFE 190.2510 15.37 75573 03/14/02 002107 HIGHNAMK INC 002107 VOL LIFE 193.2510 5,7'2 VOUCHRE2 CiTY OF TENECULA PAGE 7 03/14/02 17:49 VOUCHER/CHECK REGISTER FOR ALL PER]ORS VOUCHER/ CHECK CHECK VEHDOR VENDOR ITER ACCOUNT [TEN CHECK HUNBER DATE HUNBER NANE DESCRIPTION #UNBER ANOONT AROUHT 75573 05/14/02 002107 HiGH#ARK IgC 002107 VOL LiFE 194.2510 75573 03/14/02 002107 NIG#~ARK IHC 002107 VOL LiFE 300.2510 ?5573 03/14/02 002107 H[GI~t~RK IHC 002107 VOL LiFE ~0.2510 4,87 511.30 7'5574 03/14/02 003624 HOWELL, ANN NARIE CO JACKET DESIGN & COLOR PROOF 001.111.999.$2r0 420.00 75574 03/14/02 003624 HOWELL, ANN NARZE SALES TAX 001.111.999.5270 32.55 452.55 75575 03/14/02 004217 HYDRO TEK CONPANY PRESURE gASHER PANTS:PU NNTC 001.1(=4.601,5215 104.57 104.57 75576 03/14/02 000194 C N A RETIRENENT TRU$ 00019/* DEF CORP 001.2080 4,605.59 75576 03/14/02 000194 C # A RET[RENE#T TRUS 000194 DEF CO#P 165.2080 523,98 75576 03/14/02 000194 C # A RETIREHENT TRUS 000194 DEF CO#P 190.2080 571.78 75576 03/14/02 000194 C N A RETIRENENT TRUS 000194 DEF C~P 194.2080 16.50 75576 03/14/02 000194 C # A RETIRENENT TRUS 000194 DEF C~P 280.2080 191.57 ?5576 03/14/02 000194 C N A RETIRENENT TRUS 000194 DEF CORP . 300.2080 50.00 5,959.42 75577 03/14/02 IBARRA, ERRADEL C. REFUnD:SECURITY DEPT #S02-0033 190.2900 100.00 75577 03/14/02 IBARRA, EENADEL C. REFUgD:SECURITY DEPT #S02-0033 190.182.4990 149.00 249.00 75578 03/14/02 002787 [DENTICATOR CORPORATION FINGERPRINTING SUPPL]ES:POLIGE 001.170.999.5242 5]~.52 5]6.52 75579 03/14/02 IDIO, ADELA REFUND:CPR & FIRST AID TRAIN 190.183.4982 43.00 43.00 75580 03/14/02 003266 IRON MOUNTAIN OFFSITE FEB 02 OFF$1TE RECORDS STORAGE 001.120.999.5277 158.75 158.7~ 75581 03/14/02 00~895 J g TUMBLES TCSD INSTRUCTOR EARNINGS 190.183.999.5330 192.00 75581 0~/14/02 00/*895 J g TUI~BLES TCSO INSTRUCTOR EARNINGS 190.183.999.5330 86.40 75581 03/14/02 00/,895 d g TLI~BLES TCCO INSTRUCTOR EANMINGS 190.183.999.S330 518.40 7~581 03/14/02 004895 d ~ TUNBLES TCSD INSTRUCTOR EARNINGS 190.183.999.5330 86.40 75581 03/14/02 004895 J ~ TUNBLES TCSD INSTRUCTOR EARNINGS 190.183.999.5330 1TZ.80 1,056.00 ?5582 03/14/02 002140 JAGUAR COHPUTER SYSTENS NETk'ORK TECHNICIAN SVCS:INF $Y 320.199.999.5250 316.02 316.02 ?5585 03/14/02 002424 KELLEY DISPLAY INC gESTERN DAY/SUNNER NGT BANNERS 280.199.999.5271 17T.54 177.54 ?5584 03/14/02 003986 KEVIN COZAD & ASSOCIATE FEB TEN LIBRARY SURVEYING SVCS 210.199.129.5802 2,184.00 ?5584 03/14/02 003986 KEVIN COZAD & ASSOCIATE FEB TEN LIBRARY SURVEYING SVCS 190.180.999.5250 5~6.00 2,750.00 ?5585 03/14/02 KIgANIS CLUB OF TENECUL REFUND:SECURITY DEPT MS02-0281 190.2900 100.00 100.00 ?5586 03/14/02 00/~,13 KLN4ATH BAy CRIME PREVENTION SUPPLIES 001.170.999.5292 349.91 ~.9.91 ?5587 03/14/02 003286 LIBRARY SYSTENS & SERV! FEB SVOG-LIBRARY SYSTEN AGR#T 001.101.999.5285 1,271.76 1,271.76 ?5588 03/14/02 00/,087 LO~E~S HARD~ARE SUPPLIES:TCSO NNTC 190.180.999.5212 1~4.39 · ?5588 03/14/02 004087 LCUE~S HARDgARE SUPPL]ES:TCSO #gTC 190.180.999.5212 23.67 158.06 ?5589 03/14/02 00/,141 MAiRTEX IRC CUSTCOIAL SUPPLIES: SENioR CTR 190.181.999.5212 104.08 ?5589 03/14/02 00~141 HAINTEX ZNC CUSTCOIAL SUPPLIES: SENioR CTR 190.181.999.5212 37.1& 141.22 ?5590 03/14/02 004107 ~IASEA-LAVITT, SANORA CONTRACT SERVICES:PLANNING 001.161.999.52~8 VOUCHRE2 CITY OF TEHECULA PAGE 8 03/1&/02 17:49 VOUCHER/CHECK REGISTER FOR ALL PERICOS VOUCHER/ CHECK CHECK VEHDOR VENDOR ITEN ACCOUNT ITEN CHECK NONBER * DATE NUNBER NARE DESCRIPTION NONBER ANOUNT AROUNT 75590 03/14/02 00/,107 HASSA*LAVITT, SANDRA CONSULTANT SERVICES: PLANNING 001.161.999.52/8 352.82 7~590 03/14/02 00/.107 HASSA-LAVITT, SANDRA CONSULTANT SERVICES: PLANNING 001.161.999.52/8 13.60 2,06O.Z0 75591 03/14/02 003752 NCHARTER-CARR SUPPLY CO PURCHASE OF STORAGE CABINET 001.165.999.5242 181.75 75591 03/14/02 003752 NCHASTER-CANR SUPPLY CO SALES TAX 001.165.999.5242 14.09 195.8/* 7~592 0]/14/02 00~8 NELCOYS AD gORKS CONSULT/HRKT SVCS:OLD TOgN 280.199.999.5250 75593 03/14/02 00/d397 NERRITT HOUSE PLN INSTITUTE:OU/DH:3/20-22/02 001.161.999.5258 283.80 7~593 03/14/02 004897 NERR~TT HOUSE PLN INSTITUTE:PLN C0~:#NN2602 001.161.999.5272 567.60 851.40 75594 03/14/02 003076 NET LIFE ZHSURANCE CONP 003076 DENTALNL 001.Z3~0 4,317.43 75594* 03/14/02 003076 NET LIFE INSURANCE COKo 003076 DENTALNL 165.2340 208.96 ~594 03/14/02 003076 NET LIFE IN~CE C~P 003076 DENTALNL 190.~0 819.55 ~59~ 0~/1~/02 00~0~6 ~T LiFE [N~CE C~P 00~076 DENTALHL 19~.~0 ~.56 ~59~ 03/1~/02 0030~6 NET L]FE ]N~CE ~P 0~076 DENTALNL 1~.~0 5.~ ~59~ 03/1~/02 00~076 gET L~FE ]N~ ~ 00~076 DENTALNL 2~.~0 1~.~ ~59~ ~/1~/0~ 003076 NET LIFE ~N~CE C~ ~30~ DENTALNL 330.~0 18.87 ~59~ 03/1~/02 0~076 ~T LIFE INSU~CE C~ 003076 DENTALNL ~0.~0 135.82 5,67~.33 75595 03/14/02 00138~ MZNUTEMAII PRESS BUSINESS CA~,OS:N. SALAZAR 001.161.999.5222 39.75 75595 03/14/02 0013~ NINUTENAg PRESS BUSINESS CARDS: T. COLE 001.161.999.5222 39.7~ 75595 03/14/02 001384 NIHUTENAN PRESS SALES TAX 001.161.999.5222 6.16 75595 03/14/02 001384 NINUTENAN PRESS BUSINESS CAIU)S: N. ~EDEL 001.16~.602.5222 106.60 75595 03/14/02 00138~ NZNUTEMAN PRESS SALES TAX 001.164.602.5222 8.26 75596 03/14/02 001868 NIYAMOTO-JURKOSICY, SUSA TCSD INSTRUCTOR EARNINGS 190.183.999.5330 388.00 388.00 75597 03/14/02 000437 MORELANO& A$SUCZATES FEB TEMP HELP N. BOARONAN 001.140.999.52/8 2,456.10 2,456.10 7~598 03/14/02 003996 MUSIC HERITAGE, IgC. FY 01/02 CONN SVC FONDIHG AgRO 001.101.999.5267 1,000.00 1,000.00 75599 03/14/02 002925 NAPA AUTO PARTS AUTO PARTS/NISC SUPPLIES:FIRE 001.171.999.5214 A3.09 75599 03/14/02 002925 #ARA AUTO PARTS AUTO PARTS/NISC SUPPLIES:Pg 001.16~.601.5215 61.02 75599 03/14/02 002925 NAPA AUTO PANTS AUTO PANTS/NISC SUPPLIES:Pti 001.16~.601.5215 2.90 107.01 75600 03/14/02 002139 NORTH COUNTY TINES- ATT RECRUITNENT ADS FOR HLI~UJ RES. 001.150.999.5254 267.60 267.60 75601 03/14/02 00396~ OFFICE DEPOT OUSINESS S NISC OFFICE SUPPLIES: FINANCE 001.1~0.999.5220 79.97 75601 03/14/02 00396~ OFFICE OEPOT BUS,#ESS $ OFFICE SUPPLIES/P.D. NAZN $TN 001.170.~.5220 20.73 7~6Ol 03/14/02 00396~, OFFICE DEPOT BUSINESS S OFFXCE SUPPLIES FOR FINANCE 001.1&0.999.5220 &9.21 149.91 75602 03/14/02 002105 OLD TONg TIRE & SERVICE CITY VEHICLE REPAZRS& NAIHT 001.16~.6Ol.5214 787.10 75602 03/14/02 002105 OLD TOUN TIRE & SERVICE CITY VEHICLE REPAIRS & RAINT 001.165.999.5214 19.19 806.29 7~603 03/14/02 003762 P N X MEDICAL PARARED1C SUPPLIES 001.171.999.5311 17.09 17.09 7560~ 03/14/02 002652 PAT & OSCARS RESTAURANT REFRSHNNTS:DAD/DAUGHTER DANCE 190.183.999.5320 550.00 7560~ 03/14/02 002652 PAT & OSCARS RESTAURANT ADO~L REFRESHNENTS:O/O DANCE 190.183.999.5320 2~.3~ 794.3~ 756o5 03/14/02 001950 PEAS LONG TERN CARE PRO 001958 PEAS L-T 001.2122 83.99 83.99 VOUCHRE2 CITY OF TE#ECULA PAGE 9 03/14/02 17:49 VOUCHER/CHECK REGISTER FO~ ALL PERIOOS VOUCHER/ CHECK CHECK VENDOR VEKDON ITE# ACCOUNT ITE# CHECK NU#BER DATE NUHBER RJU4E DESCRIPTION NUNBER N4(XINT A#(XJNT 75606 03/1&/02 000249 PETTY CASH PETTY CASH REZ#BURSENENT 001.16~.601.5260 22.98 75606 03/14/02 000249 PETTY CASH PETTY CASH REI#BURSE#ENT 001.111.999.5270 50.00 75606 03/14/02 000249 PETTY CASH PETTY CASH REIHBURSE#ENT 001.111.999.5270 43.10 75606 03/14/02 000249 PETTY CASH PETTY CASH REI#BURSEHE#T 001.111.999.5230 16.75 75606 03/14/02 000249 PETTY CASH PETTY CASH REI#BURSEHERT 001.140.999.5262 45,11 75606 03/14/02 000249 PETTY CASH PETTY CASH REZl4BURSEHENT 190.183.999.5320 25.98 75606 03/14/02 000249 PETTY CASH PETTY CASH REIRGURSE#ENT 190.181.999.5301 5.26 75606 03/14/02 000249 PETTY CASH PETTY CASH REII48URSEHENT 190.181.999.5301 8.38 75606 03/14/02 000249 PETTY CASH PETTY CASH REI#BURSE#ENT 190.181.999.5301 ~.~6 75606 03/14/02 000249 PETTY CASH PETTY CASH REI#BURSE#ENT 001.140.999.52&2 22.61 75606 03/14/02 000249 PETTY CASH PETTY CASH REI#BURSEHE#T 001.100.999.5260 14.83 75606 03/14/02 000249 PETTY CASH PETTY CASH REIHBURSENENT 001.100.999.5260 9.98 75606 03/14/02 000249 PETTY CASH PETTY CASH REZHBURSE#ENT 190.183.999.5320 19.13 318.57 7~607 03/14/02 000580 PHOTO gORKS OF TEHEOULA FEB FIL#/PHOTO DEV- CIP 001.165.999.5250 36.18 75607 03/14/02 000580 PHOTO gORKS OF TEHECULA FEB FIL#/PHOTO DEV: PLANNING 001.161.999.5220 353.80 75607 03/14/02 000580 PHOTO gORK$ OF TEHECULA FEB FIL#/PHOTO DEV: PLANNING 001.161.999.5220 102.72 75607 03/14/02 000580 PHOTO ~/ORKS OF TE#EOULA FE6 FIL#/PHOTO DEV: TCSD 190.180.999.5250 80.20 572.90 75608 03/14/02 000254 PRESS ENTERPRISE COI4PAN RECRUIT#ENT ADS FOR HUI4AR RES. 001.150.999.5254 985.65 983.65 75609 03/14/02 004529 GUAID HARLEY-DAVID~OR PoD. 140TO, CYCLE HA1NTENANCE 001.170.999.5214 72.78 75609 03/14/02 004529 GUAID HARLEY-DAVIDSON P.D. HOTONCYCLE 14AINTENANCE 001.170.999.5214 219.59 75609 03/14/02 0~529 GUAID HARLEY-DAVZDSOU P.D. NOTONCYCLE NAINTENANCE 001.170.999.5214 1/.8.78 75609 03/14/02 00/*529 GUAID HARLEY-DAVIDSON P.D. NOTORCYCLE HAINTENANCE 001.170.999.5214 219.79 660.~ 75610 03/14/02 004453 R C ENTERPRISES PLAN APPROVAL STANPS 001.162.999.5222 405.79 75610 03/14/02 004453 R C ENTERPRISES CITY SEAL EHBOSSER:PLANNING 001.161.999.5242 210.11 615.90 75611 03/14/02 000981 R H F INC RADAR EGUIP#ENT & REPAIR:P.D. 001.170.999.5215 1/~,.25 14/~.25 75612 o3/14/02 004863 R # S FOUNDATION INC RFRSHNNTS:#ONT RETREAT:3/28-29 001.150.999.5260 1,500.00 75612 03/14/02 004863 R # S FOUNDATION ]NC RFRSHNNTS:#G~T RETREAT:3/28-29 001.150.999.5260 143.7& 1,643.74 75613 03/14/02 000879 RADISSON HOTEL HTL:ACCELA TPAINING:VT/:3/18-21 001.161.999.5261 369.60 369.60 75614 03/14/02 000262 RANCHO CALIF HATER GIST NAR 01-08-~8009-0 FIRE STN 92 001.171.999.5240 55.57 75614 03/14/02 000262 RANCHO CALIF I/ATER GIST FEB 01-06-8~860-5 PUJOL ST 280.199.999.5250 50.16 75614 03/14/02 000262 RANCHO CALIF HATER GIST FEB 01-02-98000-0 FIRE STN 84 001.171.999.5240 9.96 75614 03/14/02 000262 RANCHO CALIF UATER DIST FEB 01-02-98010-0 FIRE STN 84 001.171.999.5240 106.91 75614 03/14/02 000262 RANCHO CALZF HATER DIST VARIOUS RATER #ETERS 190.180.999.5240 5,098.52 75614 03/14/02 000262 RANCHO CALIF HATER GIST VARIOUS RATER HETERS 190.181.999.5240 110.28 75614 03/14/02 000262 RANCHO CALIF RATER GIST VARIOUS HATER NETERS 190.1990 6~3.63 75614 03/14/02 000262 RANCHO CALZF RATER GIST VARIOUS kfATER NETERG 190.184.999.5240 204.02 75614 03/14/02 000262 RANCHO CALIF kIATER GIST VARIOUS HATER NETERS 190.185.999.5240 63.3/, 75614 03/14/02 000262 RANCHO CALIF HATER GIST VARIOUS T/ATER #ETERS 190.186.999.5240 275.99 75614 03/14/02 000262 RANCHO CALIF UATER GIST VARIOUS RATER NETERS 190.188.999.5240 87.7-3 75614 03/14/02 000262 RANCHO CALIF HATER GIST VARIOUS RATER NETER$ 193.180.999.5240 3,689.22 75614 03/14/02 000262 RANCHO CALIF HATER GIST VARIOUS MATER NETERS 340.199.701.5240 413.90 7~614 03/14/02 0007.62 RANCHO CALZF RATER DIST VARIOUS HATER NETERS 001.164.603.5240 327.32 75614 03/14/02 000262 RANCHO CALIF RATER DIST VARIOUS HATER NETERS 001.165.999.5250 336.60 VOUCHRE2 CITY OF TEMECOLA PAGE 10 03/14/02 17:49 VOUCHER/CHECK REGISTER FOR ALL PERICOS VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT ZTEN CHECK NL~IBER DATE NUMBER NA~E DESCRIPTION NUMBER AHOUNT AHOUNT 75614 03/14/02 000262 RANCHO CALIF tJATER DIST VARIOUS ~ATER HETERS 210.165.706.580/* 31.43 11,502.08 75615 0]/14/02 000907 RANCHO CAR k~ASH CITY VEHICLE DETAILING 001.162.999.5214 8.00 75615 03/14/02 000907 RANCHO GAR UASH CITY VEHICLE DETAILING 001.165.909.521~ 8.00 75615 03/14/02 000907 RANCHO CAR k~ASH CITY VEHICLE DETAILIHG & GAS 001.110.999.5214 32.00 75615 03/14/02 000907 RANCHO CAR kLASH CITY VEHICLE DETAILIHG & GAS 001.110.999.5263 21.82 75615 0~/14/02 000907 RANCHO CAR ~ASH CITY VEHICLE DETAZLZNG 001.163.999.5214 30.00 75615 03/14/02 000907 RANCHO CAR ~ASH CITY VEHICLE DETAILING:PLAR 001.161.999.5214 8.00 75615 0]/14/02 000907 RANCHO CAR UASH CITY VEHICLE FUEL USAGE 001.164.604.5263 19.92 75615 03/14/02 000907 RANCHO CAR ~ASH CITY VEHICLE OETAILIHG 001.164.60~.5214 8.00 75615 03/14/02 000907 RANCHO GAR ~ASH CITY VEHICLE DETAILING 001.164.601.5214 19.00 75615 o3/14/o2 000907 RANCHO GAR UASH CITY VEHICLE DETAILIHG:TCSO 190.180.999.5214 32.OO 186.74 z~616 03/14/02 RANCHO HUSZC ASSOCIATIO FY 01-02 c~m SVC FUND ARARD 001.101.999.5267 3,000.00 3,000.00 75617 03/14/02 REGISTRY OF CHARZTARLE 2001 REG/RENERAL FEE REPORT 001.140.999.5226 25.00 25:00 75618 03/14/02 REMS EMS CF:4/30-5/O2:L.HOLLOUAY 001.171.909.5261 200.00 75618 0]/14/02 REMS EMS CF:4/]O-5/O2:M.BRANDT 001.171.999.5261 200.00 400.00 75619 03/14/02 003591 RENES COHHERCIAL MANAGE REMOVE BRUSH/DEBRZS:R.C./RIOGE 001.16~.601.5402 2,500.00 2,500.00 75620 03/14/02 002412 RICHARDS i4ATSOR & GERSH FEB 2002 LEGAL SERVICES 001.130.999.5Z~ 1,331.00 75620 03/14/02 002412 RICHARDS kIATSOR & GERSH DEC 2001 LEGAL SERVICES 001.130.999.52~6 2,076.90 3,407.90 75621 03/14/02 000266 RIGHT~/AY NAR EQUIP RENTAL= PAGEO PARK 19O.180.9O9.5238 60.78 60.78 75622 03/14/02 001~65 RIVERSIDE CO ENVIRORMEN PERMIT RENEWAL NOTICE: CRC 190.18~..999.5250 368.00 75622 0]/14/02 001365 RIVERSIDE CO ENVIRORMEN PERMIT RENEi4AL:VIA DEL CORONAD 190.180.999.5250 73.00 ~1.00 75023 03/14/02 001942 S C SIGNS PUBLIC NOTICE SIGNS:PLANNING 001.161.999.5256 325.00 325.00 75624 03/14/02 002681 SILVER LEGACY RESORT & HTL:ACCELA CF:J#:373181202736 001.171.999.5258 Z~I.TZ 75624 03/14/02 002681 SILVER LEGACY RESORT & HTL:ACCELA CF:OR:]73181202700 001.171.999.5258 261.72 75624 03/14/02 007..681 SILVER LEGACY RESORT & HTL:ACCELA CF:W:372970608405 001.161.9O9.5258 261.72 785.16 75625 03/14/02 000537 SO GALIF EDISOR NAR 2-06-106-0654 COSHIC DR 190.180.999.5319 3,2~.35 75625 03/14/02 000537 SO GALIF EDISON FEB 2-00-987-0775 VAIL RARCH 192.180.999.5319 3,899.15 75625 03/14/02 000537 SO GALIF EDISON FEB 2-00o907-0775 VAIL RANCH 190.180.999.5319 1,247.13 75625 03/14/02 000537 SO GALZF EDISOR HAR 2-10-331-1353 FIRE STN 8~ 001.171.999.5240 9~.&2 75625 03/14/02 000537 SO GALIF EDISON FEB 2-23-5~8-1975 MEADOUS PKUY 190.180.999.5240 16.43 75625 03/14/02 000537 SO CALIF EDISON ~ 2-10~331-2153 PUJOL ST 190.18~.999.5240 76~.0~ 75625 03/14/02 000537 SO GALIF EDISOR FEB 2-19-538-2262 FRONT ST 190.180.999.5240 98.8/* 75625 0]/14/02 000537 SO GALIF EDISON HAR 2-20-798-]248 CHZLD HLJGEUH 190.188.999.5240 71.09 75625 03/14/02 000537 SO GALZF EDISON ~AR 2-19-683-3255 FRONT ST PED 001.16~.003.5319 ~86.51 75625 03/14/02 000537 SO GALZF EDISON ILAR 2-02-351-5281 RMCHO VISTA 190.182.9(,~).5240 4,&59.87 75625 03/14/02 000537 SO CALZF EDISON HAR 2-02-351-5281 RNCHO VISTA 190.186.999.5240 1,342.18 75625 03/14/02 000537 SO GALIF EDISOR FEB 2-01-202-7330 VARIOUS LOC 192.180.999.5319 34~192.37 75625 03/14/02 000537 SO GALZF EDZSOR FEB 2-01-202-7003 ARTERIAL RTL 190.180.999.5319 13,707.52 75625 0]/14/02 0005]7 SO GALIF EDISOR NAR 2-05-791-8807 VARIOUS LOC 190.180.999.5319 3,656.07 75625 0]/14/02 000537 SO CALIF EDISON FEB 2-23-051-9399 HARGARITA 190.180.999.5240 15.3~ VOUCHRE2 CiTY OF TEMECULA PACE 11 03/14/02 17:49 VOUCHER/CHECK REGISTER FOR ALL PERIOOS VOUCHER/ CHECK CHECK VENDOR VENDOR iTEM ACCOUNT ITEM CHECK NUMBER DATE NUMBER NA~E DESCRIPTION NUMBER AI~OUNT AI4OUNT 75625 03/14/02 000537 SO CALIF EDISON FEB 2-20-817-9929 PD/FRONT CT 001.170.999.5229 205.~8 68,310.99 75626 03/14/02 001212 SO CALIF GAS COMPANY FEB 091.024.9300.5 RNCHO VISTA 190.182.999.5240 714.37 75626 03/14/02 001212 SO CALIF GAS COMPANY FEB 091.024.9300.5 RNCHO VISTA 190.186.999.5240 1,814.44 2,5~8.81 75627 03/14/02 004282 SOUTfl~EST TRAFFIC SYSTE INSTALL RACK-UP ALARN:PU VEH. 310.1910 225.00 225.00 75628 03/14/02 SPRING, KERRI REISS #70730/REFUND:TINY TOTS 190.183.4982 35.00 35.00 75629 03/14/02 000293 STADIUM PIZZA REFRESHMENTS:TEEN MEETINGS 190.183.999.5370 101.99 75629 03/14/02 000293 STADIUg PIZZA REFRESHNENTS:TEEN MEETINGS 190.183.999.5320 33.10 135.09 75630 03/14/02 004420 STATE CONP INSURANCE FU FEB ~ONKERS' C~P PREN]UM 001.2370 9,739.95 75630 03/14/02 00~20 STATE CONP INSURANCE FU FEB WONKERS~ CONP PRENZUN 165.2370 190.79 75630 03/14/02 004420 STATE CONP INSURANCE FU FEB HONKERS~ CONP PRENIUN 190.2370 3,299.36 75630 03/14/02 00~20 STATE CONP INSURANCE FU FEB UORKERS~ CONP PRENION 192.2370 75630 03/14/02 004420 STATE COMP [RSURAHCE FU FEB I~OMKERS~ COMP PRENZUM 193.2370 251.51 75630 03/14/02 004420 STATE CONP INSURAXCE FU FEB ~ORKERS~ CONP PREMIUM 194.2370 24.52 75630 03/14/02 00~*/~20 STATE CO#P INSURANCE FU FEB UORKERSt CONP PREMIUM 280.2370 6~.62 75630 03/14/02 00~20 STATE CONP INSURANCE FU FEB CORKERSt C~P PRENIUM 300.2370 15.74 75630 03/14/02 00/~20 STATE COMP INSURANCE FU FEB UORKERS~ COILo PRENIUN 320.2370 131.56 75630 03/14/02 00~420 STATE CONP IHSURANCE FU FEB gORKERS~ COMP PRENIUN 330.2370 35.09 75630 03/14/02 00~420 STATE COMP iRSURAHCE FU FEB ~ORKERS~ COMP PRENIUM 3~0.2370 462.70 14,221.18 75631 03/14/02 001546 STRAIGHT LINE GLASS I#C RES INPRV PRON: SHAW 165.199.813.5804 169.11 169.11 756.'12 03/14/02 0038/*0 STRONGS PAINTING REPAIR/HAINT: OLD TO~N CHURCH 190.185.999.5212 200.00 200.00 75633 03/14/02 000574 SUPERTONER HP PRINTER SUPPLIES 320.199.999.5221 1,074.25 1,074.25 7563~, 03/14/02 000305 TARGET STONE RECREATiON SUPPLIES FOR NPSC 190.181.999.5301 68.32 7563~ 03/14/02 000305 TARGET STONE RECREATION SUPPLZES FOR NPSC 190.181.999.5301 107.69 176.01 75635 03/14/02 TAYLOR, BABE-RUTH REFUNO:EX-BIRCH AGUARIUg SCRIP 190.183.4986 30.00 30.00 75636 03/14/02 001547 TEAMSTERS LOCAL 911 001547 UN DUES 001.2125 8~3.7~ 75636 03/14/02 001547 TEANSTERS LOCAL 911 001547 UN DUES 190.2125 175.50 75636 03/14/02 001547 TEAHSTERS LOCAL 911 001547 UN DUES 193.2125 18.00 75636 03/14/02 001547 TEAHSTERS LOCAL 911 001547 UN DUES 19/~.2125 2.25 75636 03/14/02 001547 TEANSTERS LOCAL 911 001547 UN DUES 320.2125 67.50 7563~ 03/14/02 001547 TEAMSTERS LOCAL 911 001547 UN DUES 330.2125 33.75 75636 03/14/02 001547 TEAMSTERS LOCAL 911 001547 UN DUES 340.2125 51.75 1,192.50 75637 03/14/02 003673 TECH 101 ARCUS IgC HP PSC750 PRINTER 320.199.999.5242 269.37 75637 03/14/02 003673 TECH 101 AROUS iNC FREIGHT 320.199.999.5242 20.00 75637 03/14/02 003673 TECH 101 ARCUS IRC SALES TAX 320.199.999.5242 20.88 310.25 75638 03/14/02 00~898 TEMECULA F~4ILY HEALTH FY 01/02 COW4 SVC FUNDING AgRD 001.101.999.5267 5,000.00 5,000.00 75639 03/14/02 003677 TEMECULA HOTORSPORTC LL REPAIR & HAINT:PD MOTORCYCLES 001.170.999.5214 207.16 75639 03/14/02 003677 TENECULA NOTORSPORTS LL REPAIR & RAiHT:PD NOTORCYCLES 001.170.999.5214 83.09 VOUCHRE2 CiTY OF TENECULA PAGE 12 03/14/02 17:/.9 VOUCHER/CSECK REGISTER FOR ALL PERIOUS VOUCHER/ CHECK CHECK VENDOR VENDOR iTE# ACCOUNT ]TEN CHECK NtJHBER DATE Nb~BER NA~E DESCRXPTIOR NUNBER AH(X/NT AN~UNT 75639 03/1/*/02 003677 TEMECULA 140TORSPORTS LL REPA[R& HAINT:PD 140T(~CYCLES 001.170.9~.5214 260.00 550.25 7566,0 03/1/*/02 000515 TEJ4ECULA VALLEY CHAI'IBER FY 01/02 3RD QTR FUNDING PHT 001.111.999.5266, 37,000.00 37,000.00 7564.1 03/14/02 004.274 TENECULA VALLEY SECURIT CiTY HALL LOCKSHiTH SERVICES 340.199.701.5212 96.70 96.70 7~42 03/14/02 000977 TEHECULA VALLEY SPECIAL FY 01/02 COl~ SVC FU~DI#G AgRD 001.101.999.5267 5,000.00 5,000.00 ?56/*3 03/1/*/02 003140 TENECULA VALLEY TAEIO~OR TCSD i#STRUCTOR EARNINGS 190.183.999.5330 120.00 756/*3 03/1/*/02 0031/.0 TE#ECULA VALLEY TAEKldoR TCSE iNSTRUCTOR EARNINGS 190.18~.999.5330 100.00 756&3 03/1/*/02 0031/.0 TENEOULA VALLEY TAEKUOR TCSD iNSTRUCTOR EARNINGS 190.183.999.5330 /*0.00 260.00 75(~*/* 03/14/02 003862 THYSSENKRUPP ELEVATOR.B NAR INSPECT:CITY HALL/HUSEUN 190.185.999.5250 83.33 756/~ 03/14/02 003862 THYSEENICRUPP ELEVATOR.B NAR INSPECT:CITY HALL/NUSEU# 3~0.199.701.5250 (~.67 756/,4 03/1/*/02 003862 THYSSENKRUPP ELEVATOR.B gAR 140#ITOR FEE ELEV PHONES 3~0.199.701o5250 150.00 300.00 7566,5 03/1/*/02 000978 TRAUHA iNTERVENTiON PRG 3ED DTR ENERG.RESPONCE VOL.PRG 001.171.999.527/* 1,67.0.00 1,620.00 756/,6 03/1/*/02 001065 U S C # ~EST (DEF CORP) 001065 DEF CORP 001.2080 10,877.55 756/,6 03/1/*/02 001065 U S C # ~EST (DEF CENP) 001065 DEF CORP 190.2080 2,019.93 756~6 03/14/02 001065 U S C # gEST (DEF COI4P) 001065 DEF CONP 192.2OR0 2.49 756~6 0~/1/*/02 001065 U S C # gEST (DEF C~NP) 001065 DEF CONP 193.2080 118.50 756/46 03/1&/02 001065 U S C # UEST (ORF CORP) 001065 DEF CORP 19&.2080 29.52 756/,6 03/1/*/02 001065 U S C # t/EST ¢OSF COI4P) 001065 DEF COKo 280.2080 12.31 75646 03/1/*/02 001065 U S C # i/EST (DEF CONP) 001065 DEF CORP 300.2080 88.5/* 756~6 03/14/02 001065 U S C # gEST (DEF COKD) 001065 DEF CONP 320.2080 1,166.68 75646 03/14/02 001065 U S C N ~JEST (OEF CONP) 001065 DEF CENP 340.2080 145.88 14,&61.40 7~6/.7 (L~/1/*/02 000:389 U S C # I~EST (ORRA) 000389 PT RETiR 001.2160 7564,7 03/14/02 000389 U S C M gEST (OBHA) 000389 PT RETIR 165.2160 101.60 756/*7 03/1/*/02 000389 U S C M gEST (OBRA) 000389 PT RETIR 190.2160 1,096.40 7564.7 03/14/02 000389 U S C N UEST (ORRA) 000389 PT RETIR 193.2160 29./*8 7564.7 03/14/02 000389 U S C # UEST (OBHA) 000389 PT RETIR 280.2160 29.90 7'56~.7 03/1/*/02 000389 U S C g UEST (ORRA) 000389 PT RETIR 330.2160 51.90 7564.7 03/14/02 000389 U S C g UEST (ORRA) 000389 PT RETIR ~.0.2160 32.t~.. 1,990.26 756/*8 03/14/02 002702 U S POSTAL SERVICE POSTAGE NETER DEPOSIT 001.110.999.5230 66.70 756~8 03/14/02 002702 U S POSTAL SERVICE POSTAGE NETER DEPOSIT oo1.111.~.5Z~o 21.38 756~8 03/14/02 002702 u s POSTAL SERVICE POSTAGE HETER DEPOSIT 001.120.999.5230 1,0~3.06 756&8 03/1/*/02 002702 U S POSTAL SERVICE POSTAGE NETER DEPOSIT 001.1/.0.999.5230 1,389.24 756&8 03/14/02 002702 U S POSTAL SERVICE POSTAGE HETER DEPOSIT 001.150.999.5230 2?.24 756&8 03/1/*/02 002702 U S POSTAL SERVICE POSTAGE HETES DEPOSIT 001.161.999.5230 /*09.26 756/,8 03/14/02 002702 U S POSTAL SERVICE POSTAGE #ETER DEPOSIT 001.162.999.57_30 /*3.98 756~8 03/1/*/02 002702 U S POSTAL SERVICE POSTAGE NETER DEPOSIT 001.16~,.60&.5230 ~85.~38 756~8 03/14/02 002702 U S POSTAL SERVICE POSTAGE HETER DEPOSIT 001.1990 756&8 03/14/02 002?02 U S POSTAL SERVICE POSTAGE HETER DEPOSIT 190.180.999.5230 278.97 756~8 03/1/*/02 002?02 U S POSTAL SERVICE POSTAGE #ETER DEPOSIT 280.199.999.5230 61.93 756~8 03/14/02 002?02 U S POSTAL SERVICE POSTAGE #ETER DEPOSIT 320.199.999.57.30 25.08 3,812.56 75649 03/1/*/02 00~,6 UNITED GREEN HARK Z#C IRRIG/EGUIP SUPPLZES:VAR SITES 193.180.999.5212 2,096.57 756/*9 03/14/02 00~8~6 UNITED GREEH HARK igc ZRRIGATIOR SUPPLIES: VAR SITES 193.180.999.5212 307.09 VOUCHRE2 CiTY OF TE#EOULA PAGE 13 03/14/02 17:49 VOUCHER/CHECK REGISTER . FOR ALL PERIODS VOUCHER/ CHECK CHECK VENDOR VENDOR ITE# ACCOUBT ITEH CHECK NUHBER DATE NUMBER klA~E DESCRiPTioN NUgBER AROU#T AROUNT 75~9 03114/02 004~6 UNITED GREEN HARK iNC IRRIGATION SUPPLIES: VAR SITES 193.180.~.5212 &06.50 2,810.16 75650 03/14/02 000325 U#iTED gAY 000~25 U~ 001.2120 217.80 75650 03/14/02 000325 UNITED WAY 000325 Ut/ 165.2120 7.50 75650 03/14/02 000325 UNITED UAY 000325 U~ 190.2120 31.99 75650 03/14/02 000325 UNITED gAY 000325 U~ 192.2120 .05 75650 03/1/*/02 000325 UNITED gAY 000325 U~ 193.2120 1.79 75650 03/14/02 000325 UNZTED gAY 000325 U~ 194.2120 .67 75650 03/14/02 000325 ON[TED gAY 000325 U~ 260.2120 2.50 75650 03/14/02 000~25 URITED gAY 000325 U~ ~0.2120 1.50 263.80 75651 03/14/02 004819 UNON LIFE INS. CO. OF A 004819 LTD 001.23~3 1,7/~,*.66 75651 03/14/02 00~819 UNUN LIFE IRS. CO. OF A 004819 LTD 165.2380 40.02 7~651 03/14/02 00/.819 UNUg LIFE INS. CO. OF A 00~819 LTD 190.2380 335.54 75651 03/1/*/02 00~819 UNLIg LIFE iNS. CO. OF A 00/.819 LTD 192.2380 .76 7~651 03/1/*/02 004819 UHUN LIFE INS. CO. OF A 00~819 ~ LTD 193.2380 32.0/* 7~651 03/14/02 00~819 URUM LIFE INS. CO. OF A 00~019 LTD 194.2380 75651 03/14/02 004819 UNUN LiFE INS. CO. OF A 00/,819 LTD 280.2380 17.81 7~651 03/14/02 00/,819 UNUM LIFE INS. CO. OF A 00/,819 LTD 300.2380 9.0~ 75651 03/14/02 004819 UNUN LIFE iNS. CO. OF A 00/.819 LTD 320.2380 7~651 03/14/02 00/.819 UNUN LIFE iHS. CO. OF A 01~,819 LTD 330.2380 14.90 75651 03/14/02 004819 UNUg LiFE INS. CO. OF A 004819 LTD 3~0.2380 39.61 75651 03/14/02 004819 UNIJg LIFE INS. CO. OF A 00~819 STD 001.2500 2,435.18 75651 03/1/*/02 00~819 UNUN LIFE INS. CO. OF A 00~819 STD 165.2500 55.85 75651 03/1/*/02 00/,819 UNUH LIFE INS. CO. OF A 00/.819 STD 190.2500 468.36 75651 03/14/02 00/,819 UNUM LIFE iNS. CO. OF A 004819 STD 192.2500 1.07 75651 03/14/02 004819 UNUM LIFE INS. CO. OF A 004819 STD 193.2500 /~.75 75651 03/14/02 004819 UNUN LIFE INS. CO. OF A 004819 STO 19/*.2500 9.02 75651 03/I/*/02 00~819 UNUN LiFE INS. CO. OF A 004819 STD 280.2500 24.88 75651 03/1/*/02 00/.819 UNUg LIFE 1NS. CO. OF A 00~819 STD 300.2500 12.62 75651 03/1/*/02 00~819 UNUN LIFE iNS. CO. OF A 00/.819 STD 320.2500 103.85 7S651 03/14/02 004819 UNLIN LIFE INS. CO. OF A 00/,819 STD 330.2500 20.81 75651 03/14/02 004819 UNUN LIFE INS. CO. OF A 00/,819 $TD 3/-,0.2500 55.28 5,5~6.92 75653 03/14/02 004261 VERiZON CALIFORNIA FEB XXX-1289 PRATT 320.199.999.5208 ,6,8.03 75653 03/1&/02 004261 VERIZON CRL%FORHiA FEB XXX-140R RD SATELLITE STN 001.170.999.5229 395.75 7~653 03/14/02 00~261 VERIZON CALIFORNIA RAR XXX-19/*l PTA CD TTACSD 320.199.999.5208 55.63 73653 03/14/02 00~261 VERIZON CALIFORNIA FEB XXX-2629 HAGGAR 320.199.999.5208 45.01 75653 03/14/02 00/.261 VERIZON CALIFORNIA FEB XXX-2670 911 AUTO DIALER 320.199.999.5208 28.6/, 75653 03/14/02 00~261 VERIZON CALIFORNIA FEB XXX-2730 ELEVATOR 320.199.999.5208 213.81 75653 03/14/02 004261 VERIZON CALIFORNIA FEB X]~-5029 GENERAL USAGE 320.199.999.5208 1,855.73 75653 03/14/02 004261 VERIZON CALIFORNIA FEB XXX-5509 GENERAL USAGE 320.199.999.5208 154.75 2,797.35 75654 03/1/*/02 004279 VERIZON CALIFONHIA iNC. MAR ACCESS-CRC OPEN PHONE L%NE 320.199.999.5208 ~.1.79 7565/* 03/1/*/02 004279 VERIZON CALIFORNIA INC. MAR ACCESS-RVSO CO OPEN LINE 320.199.999.5208 267.02 608.81 73655 03/14/02 i/EST GROUP "PUBLIC SAFETY" PUBLICATION 001.171.999.5228 77.00 77.00 73656 03/1/*/02 004829 WILSON GROUP LLC, THE CA STATE LOBBYIST SERVICES 001.110.999.5248 3,500.00 3,500.00 7S657 03/14/02 003607 XPECT FIRST AID FIRST AiD SUPPLIES - fi/ 001.164.601.5218 121.87 121.87 TOTAL CHECKS 502,965.52 VOUCNRE2 CZTY OF TENECULA PAGE 03/15/02 09:o6 VOUCHER/CHEGE REGISTER FOR ALL PERIOOS FUND TITLE AI~UNT 001 GENERAL FUND 1,~7,~89.57 165 RDA DEV- LOg/gOO SET ASIDE 10,326.05 190 CO~qONITY SERVICES DZSTRICT 1,380.40 210 CAPITAL I#PROVENENT PROJ FUND 415,280.60 261 CFD 88-12 ADNIN EXPENSE FUND 196.85 280 REDEVELOPNENT AGENCY - CIP 300 INSURANCE FUND 16,374.42 320 INFOJU~ATION SYSTENS 13,&54.7~ TOTAL 1~908,407.30 VOUCHRE2 C[TY OF TEHECULA PAGE 1 03/15/02 09:06 VOUCHER/CHECK REGISTER FOR ALL PERIODS VOUCHER/ CHECK CHECK VERDOR VEHDOR [TEN ACCOU#T ZTEN CHECK NONSER DATE HONBER MANE OESCRIPTION NUMBER AN~JNT ANOUNT 75660 03/26/02 00~580 CALIF CORHERCIAL POOLS`' JAN PRGS:CGAPARRAL POOL PWO008 210.190.170.580/+ 26~,000.60 263~,000.60 75661 03/26/02 00/+811 COHPAO CORPUTER CORPORA CONPAG IPAO POCKET PC H3850 320.199.999.52&2 75661 03/26/02 00~811 CONPAO COHPUTER CONPORA COHPAO UNIVERSAL DESETOR 320.199.999.52/+2 &03.00 75661 03/20/02 00~811 CORPAG CORPUTER CORPORA GALES TAX 320.199.999.52/+2 571.25 75662 03/26/02 001009 D B X INC TEHP TRFFC SIGNAL PALA RD/WOLF 001o16/+.602.5/+12 13,77~.07 75662 03/26/02 001009 D B X INC RETENTION:TE#P TRFFC SIGNAL 001.2035 1,377.31- 12,395.76 75663 03/26/02 001380 E S Z ENPLOYHENT GERVIC TEHP HELP W/E 02/22 NAASEH 001.161.999.5118 3,893.72 7566~ 03/26/02 001380 E S Z ENPLOY#ENT SERVIC TENP HELP W/E 02/22 NAASEH 001.161.999.5118 2,186.~8 6,080.10 7~66~ 03/26/02 001910 IKON OFFICE SOLUTIONS I TOSHZNA ROTEI~COK CONPUTER 320.1970 75~ 03/26/02 001910 IKON OFFICE SOLUTIONS I TOSHIGA NOTED~K REPLICATOR 320.1970 37~3.00 756~+ 03/26/02 001910 IKON OFFICE SOLUTIONS Z GALES TAX 320.1970 396.50 5,512.50 ?5665 03/~/02 00,~062 IOJSTOR SIGNALS INC ANTENNA FOR PO IdlOTONCYCLE 001.170.~.5010 6,255°00 75665 03/26/02 00J,062 IOJSTOR SZONALS INC REHOTE ANTE#NA:PD HOTORCYCLE 001.170.999.5610 7~665 03/26/02 00~062 IOJSTON SIGNALS IHC FREIGHT 001.170.999.5610 &5.00 75665 03/26/02 00/+062 IOJSTON SIGNALS l#C SALES TAX 001°170°999.5610 560.33 ?`'835.33 75666 03/26/02 003286 LIBRARY SYSTE#S & $ERVI FEB SVCS-LIBRANY $YSTE# AGR#T 001.101.999.5285 9,503./+1 9,503./+1 75667 03/26/02 002256 P & D CONSULTANTS INC JAN 2001 PROFESSIONAL SVC:B&S 001.162.999.5118 1/+,/+12.90 75667 03/26/02 002256 P & D CONSULTANTS ZRC FEB TE#P BLDG INSPECTOR SVCS 001.162.909.5118 16,393.00 ~0,800o50 7560~ 03/26/02 003218 PELA FEB PLAN CHECK SVCS:PLA##I#G 001.161o909.5250 5,005.00 5,005.00 75669 03/26/02 00~572 R NOODY CONSTRUCTION IH PEGE PIdT#7:HPSC EXPANSION:9919 210.190.163.580/* 153,390.00 75669 03/26/02 00/+572 R KOODY CONSTRUCTION ZN RET.W/H PHT#?:HPSC EXPAN:90-19 210.2035 15,339.00- 1~8,051.00 ~5670 03/26/02 002/+12 RICHARDS ~ATSON & GERSH dAN 2002 LEGAL GERVZCES 001.130.999o52~6 91,308.36 75670 03/26/02 002/+12 RICHARDS WATSON & GERSR JAN 2002 LEGAL SERVICES 165.199.999.52~6 10,326o05 75670 03/26/02 002/+12 RICHARDS NATSOR & GERSH JAN 2002 LEGAL SERVICES 190.180.999.52/+6 1,380./+0 7~670 03/26/02 002/+12 RICHARDS WATSON & GERSH JAN 2002 LEGAL SERVICES 300.199.999.52~6 16,37/+o/+2 75670 03/26/02 002/+12 RICHARDS WATSON & GERSH JAN 2002 LEGAL SERVICES 280°199.999.52~6 3,90J+.66 7~670 03/26/02 002/+12 RZONANDS UATSON & GERSH JAN 2002 LEGAL SERVICES 261.199.999.52~6 196.85 75670 03/26/02 002/+12 RICHARDS UATSOH & GERSH JAN 2002 LEGAL SERVZGES 001°26~3 75670 03/26/02 002/+12 R/CHARDS WATSON & GERSH JAN 2002 'LEGAL SERVICES 001.26~2 15,812.28 1/+0,,351.37 75671 03/26/02 000955 RIVERSIDE CO SHERIFF SW BURGL/~RY DETAIL:DECEHBER 2001 001.170.9d;'9.5372 75671 0~/26/02 000~55 RZVERSIDE CO SHERIFF S~ JAN WIRDCR/ S#ASH TASK FORCE 001.170.999.5372 19,531.26 75671 03/26/02 000955 RIVERSIDE CO SHERIFF SU OEC DUI ENFONCEHERT PATROL SVC 001°170°999°5~372 9,580.56 ~36,595.97 75672 03/26/02 00/~117 RIVERSIDE CO SHERIFF'S 1ST GTR SHERIFFtS P.)I$ UGAGE 001.170.999°5325 18,190.00 75672 03/26/02 006117 RIVERSIDE CO SHERIFF'S 2ND GTR SHERIFF~'S R#S USAGE 001.170.999.5325 18,199.00 756?2 03/26/02 00J~117 RIVERSIDE CO SHERIFF'S 3RD QTR SHERIFF'S R#S UGAr'c 001°170°990.5325 18,1~°00 5/+,59?.00 ~67'3 03/26/02 000'~06 RIVERSIDE CO SHERIFFS D 11/15'12/12/01 LAW ENFORCENENT 001.170.~.52~ 756~3 03/26/02 000~06 RZVERSIDE CO SHER%FFS D 11/15-12/12/01 LAW EHFONCE#ENT 001.170.999.5299 9~,5~o50 ?~673 03/26/02 000/+06 RIVERSIDE CO SHERIFFS D 11/15-12/12/01 LAW ENFORCE#ENT 001.170.999.5295 VOUCHRE2 CITY OF TE#ECULA PAGE 03/15/02 09:06 VOUCHER/CHECK REGISTER FO~ ALL PERICOS VOUCHER/ CHECK CHECK VEHDO~ VENDOR [TEN ACCOUNT [TEN CHECK NUI4BER DATE NUHBER NANE DESCRIPTION NL~4DER ANOUNT ANOUNT 75673 03/26/02 000406 RIVERSIDE CO SHERIFFS D 11/15-12/12/01 LAg ENFORCEHENT 001.170.999.529/* 5,361.70 75673 03/26/02 000406 RIVERS]DE CO SHERIFFS D 11/15-12/12/01 LAg ERFORCENEHT 001.170.999.5297 16,003.20 75673 03/26/02 000/*06 RIVERSIDE CO SHERIFFS D 11/15-12/12/01 LAg EHFORCENEHT 001.170.999.5~91 10,944.00 7~67'3 03/26/02 000/,06 RIVERSIDE CO SHERIFFS O 11/15-12/12/01 LAg ENFORCEHENT 001.170.999.5281 75673 03/26/02 000406 RIVERSIDE CO SHERIFFS D 11/15-12/12/01 LAg ENFORCE#ENT 001.170.999.5262 2/*,5/,3.88 7567'3 03/26/02 000406 RIVERSIDE CO SHERIFFS D 11/15-12/12/01 LAg ENFORCENENT 001.170.999.5279 16,556.63 75673 03/26/02 000406 RIVERSIDE CO SHERIFFS D 12/13-01/09/02 LAg ENFORCENENT 001.170.999.5288 361,164.5/* 75673 O]/Z6/OZ 000406 RIVERSIDE CO SHERIFFS D 12/13-01/09/02 LAg ENFORCENENT 001.170.999.5299 94,510.70 75673 03/26/02 000/*06 RiVERSiDE CO SHERIFFS D 12/13-01/09/02 LAg ENFORCENENT 001.170.999.5295 9,073.60 75673 03/26/02 000/*06 RIVERSIDE CO SHERIFFS D 12/13-01/09/02 LAg ENFORCENENT 001.170.999.5294 75673 03/26/02 CO0/*06 RiVERSiDE CO SHERIFFS D 12/13-01/09/02 LAg ENFORCENENT CO1.170.999.5297 16,00].20 75673 03/26/02 O00~D6 RIVERSIDE CO SHERIFFS D 12/13-01/09/02 LAg ENFORCEHENT 001.170.999.5291 8,208.00 75673 03/26/02 000/*06 RIVERSIDE CO SHERIFFS D 12/13-01/09/02 LAg ENFORCENENT 001.170.999.5281 ]9,030.0/* 75673 03/26/02 000406 RIVERSIDE CO SHERIFFS D 12/13-01/09/02 LAg ENFORCENENT 001.170.999.5262 7567] 03/26/02 000~06 RIVERSIDE CO GHERIFFG O 12/13-01/09/02 LAg ENFORCENENT 001.170.999.5279 11,561.63 1,1/,2,775.21 7~674 03/26/02 00~806 RIVERSIOE COUNTY SHERIF JAN 2002 BCOK]NG FEES 001.170.999.5275 10,~88.00 10,~88.00 75675 03/26/02 00~56 T & N CONSTRUCTION PRGS Pl4T #10:NAIHT FAC:PUO0-16 210.190.158.580/* 15,810.00 7567~ 03/26/02 00/*/*56 T & N CORSTRUCTIOR RET.g/H PNT #10:NA]NT FAC:O016 210.2035 1,581.00- 756?6 03/26/02 00/*368 VALI COOPER & ASSOCIATE NOV TEMP LANO DEV INSPECTOR SV 001.16~.999.5118 8,89~.00 75676 03/26/02 004368 VALI COOPER & ASSOCIATE NOV TENP LAND DEV INSPECTOR SV 001.163.999.5118 3,2/.3.00 12,136.00 75677 03/26/02 000.132 VARDORPE CHOU ASSOCIATE FEB B&S PLAN CHECK SERVICES 001.162.999.52/.8 10,202.30 10,202.30 TOTAL CHECKS 1,908,/*07.30 #0,022802 ~0.001 REJISTE2 CITY OF TEMECULA 02/26/02 14:29 LABOR DISTRIBUTION REGISTER ALL PERIODS 1 691522 · 49 + =0.165 SYST DT DOCUMENT LINE TRAM DT DESCRIPTION ACCOUNT # 02/26/02 CD1FEB 28-01 1] 02/28/02 Paychecks ]20-2050 %2 3 3' ? 1+ ACCRUED SALARIES 02/26/02 CD1FEB 28-01 14 02/28/02 Paychecks ]20-2010 ACCOUNTS PAYABLE #0 ' 190 02/26/02 CD1FEB 2E-01 15 02/28/02 Paychecks 330-2010 ACCOUNTS PAYABLE DOCUMENT TOTAL 42~489' ~4+ =0.192 02/28/02 DATE TOTAL GRANI 66 ' 24 + EXP TOTAL 355,245.78 REV TOTAL .00 ~0 · 193 G/L TOTAL 2]6,489.32 3;658' 12 + ~0 · I 94 563.54+ ~0.280 1,911 , 65+ #0.300 867.07+ #0.320 6~586' 51 + ~0.3)0 2J118.09+ ~0.~40 %472 · 46+ 25G489'~2. REJISTE2 CITY OF TEMECULA 03/12/02 16:14 LABOR DISTRIBUTION REGISTER ALL PERIODS SYST DT DOCUMENT LINE TRAN DT DESCRIPTION ACCOUNT # 03/11/02 CD1HAR 14-01 1 03/14/02 Paychecks 001.2050 ACCRUED SALARIES 03/11/02 CD1MAR 14-01 2 03/14/02 Paychecks 190.2050 ACCRUED SALARIES 03/11/02 CD1HAR 14-01 3 03/14/02 Paychecks 280.2050 ACCRUED SALARIES 03/11/02 CD1HAR 14-01 4 03/14/02 Paychecks 001,2010 ACCOUNTS PAYABLE 03/11/02 CDINAR 14-01 5 03/14/02 Paychecks 330.2050 ACCRUED SALARIES 03/11/02 CD1MAR 14;01 6 03/14/02 Paychecks 300.2050 ACCRUED SALARIES 03/11/02 CD1MAR 14-01 7 03/14/02 Paychecks 165.2050 ACCRUED SALARIES 03/11/02 CD1MAR 14~01 8 03/14/02 Paychecks 193.2050 ACCRUED SALARIES 03/11/02 CD1MAR 14-01 9 03/14/02 Paychecks 340.2050 ACCRUED SALARIES 03/11/02 CD1MAR 14-01 10 03/14/02 Paychecks 194.2050 ACCRUED SALARIES 03/11/02 CD1MAR 14-01 11 03/14/02 Paychecks 190.2010 ACCOUNTS PAYAGLE 03/11/02 CD1MAR 14-01 12 03/14/02 Paychecks 192.2010 ACCOUNTS PAYABLE 03/11/02 CO1MAR 14-01 13 03/14/02 Paychecks 192.2050 ACCRUED SALARIES 03/11/02 CD1MAR 14-01 14 03/14/02 Paychecks 193.2010 ACCOUNTS PAYASLE 03/11/02 CD1MAR 14-01 15 03/14/02 Paychecks 194.2010 ACCOUNTS PAYABLE 03/11/02 CD1MAR 14-01 16 03/14/02 Paychecks 320.2050 ACCRUED SALARIES 03/11/02 CD1HAR 14-01 17 03/14/02 Paychecks 320.2010 ACCOUNTS PAYABLE 03/11/02 CD1HAR 14-01 10 03/14/02 Paychecks 330.2010 ACCOUNTS PAYABLE DOCUMENT TOTAL 03/14/02 DATE TOTAL GRAND EXP TOTAL 416,107.04 REV TOTAL .00 G/L TOTAL 241,272.88 ITEM 4 AP PROV CITY ATTORNEY DIRECTOR OF FINANCE ..~ CiTY MANAGER ~'~ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Financ~p DATE: March 26, 2002 SUBJECT: Approval of Demands and Issuance of Checks and Warrants by the City Manager PREPARED BY: Polly yon Richter, Management Assistant III ~ RECOMMENDATION: It is recommended that the City Council: 1. Introduce and read by title only an Ordinance entitled: ORDINANCE NO. 02- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AMENDING SECTIONS 3.14.100 AND 3.14.120 OF THE TEMECULA MUNICIPAL CODE AND REPEALING SECTIONS 3.24.130, 3.24.t40 AND 3.24.150 OF THE TEMECULA MUNICIPAL CODE, ALL RELATING TO THE APPROVAL OF DEMANDS AND ISSUANCE OF CHECKS AND WARRANTS BY THE CITY MANAGER PURSUANT TO GOVERNMENT CODE SECTIONS 37208 AND 5391'1 2. Adopt a Resolution entitled: RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DESIGNATING CITY OFFICERS REQUIRED TO SIGN CHECKS AND WARRANTS ON BEHALF OF THE CITY AND REPEALING RESOLUTION NO. 96-76 BACKGROUND: Presently, demands (or invoices) received from vendors are divided into two groups: those under $5,000 and those over $5,000. The City Manager is authorized pay any demands under $5,000. A list of demands for invoices over $5,000 require audit by the City Council prior to payment, however, the City Manager may authorize prepayment of any demand where, in his discretion, such prepayment is necessary for the efficient management of City business. R:lvon Richter~Staff Repod - Payment of Demands dcc Demands for payment are typically due 30 days after receipt of the invoice by the City; payment delays may result in additional costs. Upon receipt of the invoice, the department must review the demand and authorize payment. Accounts Payable staff then conducts an extensive review and evaluation of the invoice. If discrepancies are found, the department or the vendor may be called upon for further action. Acceptable invoices are entered into the computer system and two different lists of demands are generated based upon the amount. The list of demands for invoices over $5,000 is then submitted to Council for review. As the City has grown and the volume of work has increased for Finance staff, these procedures have become increasingly cumbersome for staff. Frequently, invoices reach the Accounts Payable staff with insufficient time to adequately complete their work prior to Council agenda deadlines resulting in a delay in payment or requiring City Manager approval of prepayment prior to Council review. The proposed ordinance and resolution would provide for the direct approval of checks and warrants by the City Manager without prior audit by the City Council. The ordinance provides that the Director of Finance shall review all demands made on the City and determine whether certain findings can be made with respect to each demand. These findings are the same ones currently set forth in Section 3.14.110 of the Temecula Municipal Code with some minor modifications to incorporate the language of Government Code Sections 37208 and 53911. Section 3.14.110 has also been modified to provide that the Director of Finance will recommend approval of the demands to the City Manager based on these findings. The City Manager will be required to make these findings prior to approval of checks. The resolution provides that two members of the Staff must sign checks approved by the City Manager. This resolution is necessary to repeal current Resolution No. 96-76. These proposed changes are welcomed by vendors and staff alike. The Finance Committee members are also in support of the changes. Vendors who submit demands for greater than $5,000 will receive payments in a more timely manner. Increased staff efficiency will result from the processing of one list of demands instead of two, and the change in process will eliminate urgency due to Council agenda deadline requirements. FISCAL IMPACT: None ATTACHMENTS: 1. Proposed Ordinance No. 02- 2. Proposed Resolution No. 02- ORDINANCE NO. 02- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AMENDING SECTIONS 3.14.110 AND 3.14.120 OF THE TEMECULA MUNICIPAL CODE AND REPEALING SECTIONS 3.24.130, 3.24.140 AN D 3.24.180 OF THE TEMECULA MUNICIPAL CODE, ALL RELATING TO THE APPROVAL OF DEMANDS AND .ISSUANCE OF CHECKS AND WARRANTS BY THE CITY MANAGER PURSUANT TO GOVERNMENT CODE SECTIONS 37208 AND 53911 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 3.24.110 of the Temecula Municipal Code is hereby amended to read as follows: "3.14.110. Approval of Demands by Director of Finance. Each demand approved by the receiving department or office shall be presented to the Director of Finance, who shall recommend approval or disapproval of the demand to the City Manager based upon his or her determination of whether following findings can be made with respect to each demand: A. The demand is legally due and owing by the City; B. There are appropriated funds available to pay the demand pursuant to the budget or other appropriation of the City Council approved by resolution; C. The demand conforms to a valid requisition or order; D. The prices and computations shown on the demand are verified; and E. The demand contains the approval of other departments and officials as required by City policies." SECTION 2. Section 3.24.120 of the Temecula Municipal Code is hereby amended to read as follows: "3.24,120. Approval of Warrants by City Manager. The City Manager is hereby authorized to issue a check or warrant pursuant to Government Code Sections 37208 and 53911 upon completion of the review of the demands by the Director of Finance and the City Manager's determination of whether the findings set forth in Section 3.24.110 of the Temecula Municipal Code can be made with respect to each demand. Checks issued by the City Manager pursuant to this procedure must be signed by two officials of the City as designated by Resolution of the City Council. The register of warrants or checks so issued by the City Manager shall be presented to the City Council for review at a public meeting." SECTION 3. Sections 3.24.130, 3.24.140, and 3.24.150 of the Temecula Municipal Code are hereby repealed. R:\Caravelli Denise\Ordinances\Demands and Issuance of Checks.doc 1 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 is would have passed this ordinance and each sentence, clause or phrase thereof irrespective of the fact that any one 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 ,2002. Ron Roberts, 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, California, do hereby certify that the foregoing Ordinance No. 2002- was duly introduced and placed upon its first reading at a regular meeting of the City Council on the __ day of ,2002, 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 ,2002 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W, Jones, CMC City Clerk R:~Caravelli Denise\Ordinances\Dernands and Issuance of Checks,doc 2 RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DESIGNATING CITY OFFICERS REQUIRED TO SIGN CHECKS AND WARRANTS ON BEHALF OF THE CITY AND REPEALING RESOLUTION NO. 96-76 The City Council of the City of Temecula hereby resolves as follows: Sectio, n 1. Pursuant to the requirements of Section 3.24.120 of the Temecula Municipal Code, the Council hereby directs that two of the following City officers sign checks and warrants on behalf of the City: City Manger,; Deputy City Manager; Director of Finance; or Assistant Finance Director. Section 2. Resolution No. 96-76 adopted on June 11, 1996, is hereby repealed. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula this day of 2002. Ron Roberts, 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, California, do hereby certify that Resolution No. 2002- was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the th day of ,2002, by the following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk R:\Caravelli Denise\Ordinances\Checks and Warrants.doc 1 ITEM 5 APPROVAL CITY ATTORNEY DIRECTOR OF FINAN[~E~ CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: ~Susan W. Jones t,~ City Clerk/Director of Support Services DATE: March 26, 2002 SUBJECT: Information Technology Consulting Services RECOMMENDATION: 1. Approve a contract in an amount not to exceed $30,000.00, to Tech/Knowledge, Inc. to provide Information Systems consulting services. 2. Appropriate $20,000.00 from the Information Systems unappropriated fund balance. BACKGROUND: The City recently completed a Request for Qualifications (RFQ) for the purpose to select a consulting firm to provide an evaluation of the City's current Information Systems structure and needs. In addition, services are needed in the area of technical ass[stance, due to the medical leave of one of the Information Systems Specialist, for approximately three months. A total of six proposals were mailed out to the following consulting firms: RHI Consulting Kerry Consulting Group Technology Professionals Dennis Vlasich, Principal 4366 Executive Drive, Suite 450 100 W. Foothill Blvd. San Diego, CA 92121 Claremont, CA 91711 Tech/Knowledge, Inc. KPMG 200 E. Del Mar Blvd., Suite 300 750 B. Street, Suite 3000 Pasadena, CA 91105 San Diego, CA 92101 SDDPC Computer Upgrade 1200 Third Avenud, Suite 1400 1901 Sampson Avenue San Diego, CA 92101 Corona, CA 92879 Of the six proposals mailed, two responded: RHI Consulting and Tech/Knowledge, Inc. Tech/knowledge, Inc. provided the most comprehensive response with the needed flexibility to provide both the technical as well as structural evaluation. Agenda Reports/RFP - IS Consutling 1 With the ever-growing needs of the City, as well as the advance of Information Technology, a review of current systems is necessary to insure the continuation of efficient and cost-effective information systems support. Included in the review will address security issues, back-up and archive systems and needs, web operations, disaster recovery plans, cross-training, internal controls, documentation of current systems and over-all organizational structure. FISCAL IMPACT: The current year Information Systems operating budget has available funds of $10,000.00. However, an appropriation of $20,000.00 is needed to satisfy the purchase of all additional services associated with this agreement. ATTACHMENT: Consulting Contract Agenda Reports/RFP - IS Consutling 2 CITY OF TEMECULA AGREEMENT WITH TECH/KNOWLEDGE, INC FOR CONSULTANT SERVICES THIS AGREEMENT, is made and effective as of March 2~', 2002, between the City of Temecula, a municipal corporation ("City") and TECH/KNOWLEDGE, 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 March 27, 2002, and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2002, 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 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, 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 $30,000 Dollars for the total term of the Agreement unless additional payment is approved as provided in this Agreement. b. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement, which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services Updated 2/2/01 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 an 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 ~11 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 de~ult. 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 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 adsing 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 Liabilityform No. CG 00 01 11 85 or 88. (2) Insurance Services Office Business Auto Coverage form CA 00 01 06 92 covering Automobile Liability, code 1 (any auto). If the Consultant owns no automobiles, a non-owned auto endorsement to the General Liability policy described above is acceptable. (3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. If the Consultant has no employees while performing under this Agreement, worker's compensation insurance is not required, but Consultant shall execute a declaration that it has no employees. (4) Professional Liability Insurance shall be written on a policy form providing professional liability for the Consultant's profession. b. Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability U[3dated 2/2/(31 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. 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 f~llowing 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. (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:VlI, unless otherwise acceptable to the City. Self insurance shall not be considered to complywith these insurance requirements. f. Verification of Coverage. Consultant shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements areto 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 electing 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 e)clusive direction and control. Neither Citynor 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 liabilitywhatever 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 complywith 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. 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 Updated 2/2/01 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, headng 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, Cites 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: t5. ASSIGNMENT. The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior wdtten 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. t 7. 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 ofthis Agreement. Anylitigation 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 tiled 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 of Temecula shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Contractor, or Contractor's sub-contractors for this project, during his/her tenure or for one year thereafter. The Contractor hereby warrants and represents to the City that no officer or employee of the City of Temecula 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 bylaw or this Agreement. Ur~dated 2/2/01 19. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All pdor or contemporaneous agreements, understandings, representations and statements, oral or wdtten, 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. Updated 2/2/01 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 Tim V. Peters TECH/Knowledge 200 E. Del Mar Blvd. Suite 300 Pasadena, CA 9t t05 By: Name: Title: By: Name: Title: (Signatures of two corporate officers required for Corporations) Updated 2/2/01 EXHIBITA TASKS TO BE PERFORMED Updated 2/2/01 EXHIBIT "A" LIST OF TASKS TO BE PERFORMED PART ONE · Help Desk Support · Network updates, system labeling, inventory · Desktop and Laptop System Maintenance · Other routine system maintenance (toner replacement, system moves, fixing account lockouts, etc.)\ · Network access issues (Iogins, GroupWise maintenance) · Virus protection · Application version updates, patches, etc. · Printer access and control (network printer access) · Remote Access Services (RAS), Citrix WinFrame, VPN remote-network-access issues) · Support of LaserFiche upgrade and migration project · Support of the Eden accounting migration (DOS to Windows version) · Creation of how-to documentation for future network usage · Use of Track-It for day-to-day reporting, gathering of service delivery metrics PART TVVO · Document the existing network design and review the technology system used. · If needed, address proper re-design or re-implementation of the existing technology. · Inventory existing network infrastructure hardware and firmware. · Inventory existing server hardware and software. · Inventory existing desktop computer hardware and software. · Review e-mail system usage and storage patterns. · Review network security rules and procedures. · Review existing information technology procedures and processes. · Review alternate available technology. · Review and establish goals and objectives. · Implement and train staff and management. · Build cost estimates for recommended changes. Agenda Reports/RFP - IS Consutling 3 EXHIBIT "B" PAYMENT RATES AND SCHEDULE March 18, 2002 Mr. Gus Papagolos Fiscal Services Manager City of Ternecula 43200 Business Park Drive Temecula, California 92590 Dear Mr. Papagolos: Tech/Knowledge, Inc. is pleased to clarify our original proposal to the City of Temecula to provide Information Technology Consulting Services. After our discussion, we have agreed on firm estimates for the following services: Hands-On Technical Support Services: 120 Hours of service at $64.00 per hour: $7,680.00 Professional Services (As described in our proposal of 2/19) 120 Hours of service at $150.00 per hour: $18,000.00 Estimated Total Expenses: $4,000.00 TOTAL PROPOSED FEES: $29.680.00 Services beyond this level will not be provided without the explicit written consent of the City prior to the performance of such services. We sincerely appreciate this opportunity to propose our services, and can assure you that we will complete the work in a timely and effective manner. We are prepared to assist with the project immediately. If you have any questions concerning this proposal, please call us at (800) 818-8324. Sincerely, Timothy V. Peters Agenda Repot[s/RFP - IS Consutling 3 ITEM 6 , · * ;'APPROVAL . · :CI'i:Y A'T'I:ORN EY DIR.OF FINANCE CITY MANAGER' . CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: ~Susan W. Jones, City Clerk/Director of Support Services DATE: '"March 26, 2002 SUBJECT: Award of Contract to Canon Financial Services, Inc. (CFS) and Temecula Copiers PREPARED BY: Michaela A. Ballreich, Deputy City Clerk/Support Services RECOMMENDATION: That the City Council: 1. Award a three-year contract to Canon Financial Services, Inc. (CFS) in the amount of $236,981.24 (as per the original RFP plus the addition of one copier, the upgrading of two copiers, and sales tax in accordance with the RFP) for the capital lease of the equipment and authorize the Mayor to execute the contract; 2. Award a three-year contract to Temecula Copiers in the amount of $115,290.00 (as per the original RFP plus the maintenance, service, and performance for the one added copier) for the maintenance, service, and performance of.the equipment and authorize the Mayor to execute the contract. BACKGROUND: On July 23, 1996, the City Council approved a five-year (60-month) pooled maintenance/lease of equipment contract, in the amount of $669,929.00, with Xerox Corporation for the lease of 8 copiers. As of July of 2001, the contract with Xerox Corporation has expired. The City, at that time, opted to proceed on a month-to-month basis with Xerox Corporation (as per the lease agreement) in order to proceed with a formal bid process. On an average, the yearly cost with Xerox Corporation has been $136,166.80, including capital lease, operating cost, and interest. The interest rate with Xerox Corporation for the lease agreement for the 8 copiers varied from 8.0% to 12.5%. On July 9, 2001, a Request for Proposal (RFP) for photo copiers was sent out to 21 vendors and eight of those 21 vendors responded. The RFP encompassed 12 copiers (10 on-site and 2 off-site - Temecula Community Center and Fire Station No. 84), four additional copiers than what was included in the original contract with Xerox Corporation. The term of the proposed contract would be for three years (36 months). The deadline for filing the RFP was July 30, 2001. The results of these bids were as follows: Proposed Vendors Annual Cost (original RFP - three-year term - lease/maintenance costs per year) 1. Temecula Copiers (Canon products) $ 93,619.20 2. Toshiba $ 94,027.08 3. Pitney Bowes Qffice Systems $117,711.48 4. Canon $136,028.04 5. Minolta Business Solutions $155,700.00 6. Ikon Office Solutions incomplete RFP submitted - did not provide the requested information 7. Xerox Corporation incomplete RFP submitted - did not provide the requested information 8. X.C.S., Inc. incomplete RFP submitted - did not provide the requested information The eight RFPs were extensively reviewed by staff and based on the following criteria: capital lease cost, monthly maintenance cost, networking cost, overall product, and available technica( support. Three of the eight responses to the RFP were rejected because they were found to be non- responsive proposals (Ikon Office Solutions, Toshiba, Xerox Corporation, and X.C.S., Inc.). The remaining five potential vendors were interviewed by staff to again address the above-mentioned criteria. As a result of this first interview, the following three potential vendors were given the opportunity to provide a demonstration interview: 1. Temecula Copiers (Canon products) 2. Canon 3. Minolta Business Solutions After the demonstration interview, staff determined that Temecula Copiers was the lowest proposal submitted ($93,619.20) and was also the only vendor to meet the City's criteria as noted above. The actual annual cost for the City would include the following: base bid at $93,619.20, upgrades/addition at $18,123.00, and sales tax at $5,682.00 for a total annual cost of $117,424.00 and a three-year total cost of $352,272.00. The annual cost would include the capital lease cost, operating cost, networking cost, sales tax, and interest at a rate of 2.99%. At the end of the three- year contract, the City would be given the ability to exercise a $1.00 purchase option versus a rental, cost per copy, or fair market value lease. The City may add equipment at any time during the [ease either by way of co-terminus or extended-term lease options. Temecula Copiers would provide the City with Canon products and, therefore, two separate agreements are necessary - one with Temecula Copiers for the.maintenance, service, and performance and one with Canon Financial Services, Inc. (CFS) for the lease of the equipment. Considering the close proximity of Temecula Copiers to City Hall, Temecula Copiers will be able to provide the necessary technical support within an efficient timeframe. During the RFP/demonstration process, staff identified the need to upgrade two of the proposed copiers and add a copier for Records Management. The proposed contract savings (including the upgrades and addition) over the Xerox contract will be approximately $21,000.00 annually. 2 FISCAL IMPACT: The current year fiscal impact of this contract will be $29,358.00 and adequate funds are available in the Internal Service Fund ($27,360.00), Fire budget ($965.00), and Temecula Community Services budget ($1,033.00). Thereafter, the annual cost of $117,424.00 for this contract will be budgeted and paid for through the Internal Service Fund, Fire budget, and Temecula Community Services budget and will be included in each annual budget for each fiscal year. ATTACHMENTS: Lease Contract with Canon Financial Serv!ces, Inc. Contract for Maintenance, Service, and Performance with Temecula Copiers C llOll Canon Financial Services, Inc. ("CFS") Philadelphia, Pennsylvania 19101-2937 · (800) 220-0200 MUNICIPAL LEASE AGREEMENT Agreement Number Customer (Futl Legal Name) Phone ( Billing Address City State Zip Equipment Address EQUIPMENT INFORMATION NUMBER AND AMOUNT OF PAYMENTS Quantity I Serial Number I Make/Model Description No. of Pmts. Total Payment* See attached lease schedule Term in months ~-~ ~-~ "Plus Applicable Taxes Payment Frequency: ,~Monthly D Quarterly [] Other: THIS AGREEMENT IS EFFECTIVE ONLY UPON SIGNING BY BOTH PARTIES. THIS AGREEMENT IS NON-CANCELABLE BY CUSTOMER. CUSTOMER REPRESENTS THAT ALL ACTION REOUIRED TO AUTHORIZE THE EXECUTION OF THIS AGREEMENT ON BEHALF OF THE CUSTOMER BY THE FOLLOWING SIGNATORIES HAS BEEN TAKEN. ACCEPTED AUTHORIZED CUSTOMER SIGNATURE CANON FINANCIAL SERVICES, INC. By: X Title: By: Printed Name: Title: By: X Title: Date: ~ Printed Name: To: Canon Financial Sewices, Inc, (~CF$") ACCEPTANCE CERTIFICATE The Customer certifies that all of the Equipment referred to in the above Agreement has been delivered to and has been received by the Customer, that the installation or other work necessary prior to the use of such Equipment has been completed, that such Equipment has been examined by Customer and is in good operating order and condition and is, in all respects, satisfacfory to the Cuslomec and that such Equipment ~s irrevocably accepted by the Customer for all purposes under the Agreement. Accordir'~ly, Customer hereby authorizes CFS to purchase the Equipment. Sipnature: X Printed Name: TitJe (if any): Date: TERMS AND CONDITIONS LEA$£: CFS leases to Customer a~d Customer ~eases from CFS all the e~uipmenl described above, together wfih all replacemeAt parts and substitulions for and addItie~s to aa such equipment {the 'Equipment'), upon the SEE REVERSE SIDE FOR ADDITIONAL TERMS AND CONDITIONS. o CITY OF TEMECULA COPY MACHINE MAINTENANCE, SERVICE AND PERFORMANCE AGREEMENT TEMECULA COPIERS This maintain, service and performance ("Agreement") is made and entered into as of March 27, 2002, by and between the City of Temecula ("City"), a municipal corporation, and Temecula Copiers ("Vendor"). In consideration of the mutual covenants and promises contained herein, the parties agree as follows: 1. Maintenance~ Service and Performance of Copy Equipment. On and subject to the terms and conditions set forth in this Agreement and the Contract Documents, Vendor agrees to service and maintain for the City copy machines as described in Exhibit A, attached hereto and incorporated herein as though set forth in full for a three year term beginning on the delivery and installation date of the copy equipment ("Equipment"). 2. Maintenance~ Service and Performance. The City agrees to pay to Vendor for the services in exhibit A, shall not exceed $115,290 (One Hundred Fifteen Thousand, Two Hundred and Ninety Dollars) for the three-year term of this agreement. The Purchase price is final and shall be paid by City to Vendor within 30 days of receipt of invoice and acceptance by the City of Temecula, City Clerk. Exhibit C contains the service rate schedule. 3. Scope of Work. Vendor shall install and maintain the equipment as described in the Scope of Work, attached hereto and incorporated herein as Exhibit A ("Work"). Vendor shall provide and furnish all 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 Scope of Work. The Work shall be completed within the time set forth in the Scope of Work. Vendor shall not commence the Work until such time as directed by the City. 4. Representations and Warranties of Vendor. Vendor makes the following representations and warranties to City: a. Authority and Consents. Vendor has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement. No approvals or consents of any persons are necessary in connection with Vendor's execution, delivery; installation and performance of this Agreement, except for such as have been obtained on or prior to the date hereof. The execution, delivery, installation and performance of this Agreement by Vendor have been duly authorized by ali necessary action on the part of Vendor and constitute the legal, valid and binding obligations of Vendor, enforceable against Vendor in accordance with their respective terms. b. Full Disclosure. None of the representations and warranties made by Vendor in this Agreement contain or will contain any untrue statement of a material fact, or omits to state a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading. 5. Performance. Vendor shall at all times faithfully, competently and to the best of his or her ability, experience, and talent perform all tasks described herein. Vendor shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Vendor hereunder in meeting its obligations under this Agreement. 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, Upon delivery and installation the City shall inspect the equipment and sign acceptance certificate on the municipal lease. 7. Time of Delivery. The date and time of delivery of the Equipment shall be approximately 5 to 10 days from receipt of Contract by the Vendor. 8. Place of Delivery. The Equipment shall be delivered to the locations identified in Exhibit A. 9. Reiection. In the event of such notice of non-conformity by City pursuant to Section 6, City may, at its option, (1)reject the whole of the Equipment and Installation, (2)accept the whole of the Equipment and Installation, or (3)accept any commercial unit or units of the Equipment and reject the remainder or the Installation. The exercise of any of the above options shall be "without prejudice" and with full reservation of any rights and remedies of City attendant upon a breach. In the event of such notice and election by City, City agrees to comply with all reasonable instructions of Vendor and, in the event that expenses are incurred by City in following such instructions, Vendor shall indemnify City in full for such expenses. 10. No Replacements of Cure. This Agreement calls for strict compliance. Vendor expressly agrees that both the Equipment and Installation tendered and the tender itself will conform fully to the terms and conditions of the Agreement on the original tender. In the event of rejection by City of the whole of the Equipment or any part thereof pursuant to Section 8, City may, but is not required to, accept any substitute performance from Vendor or engage in subsequent efforts to effect a cure of the original tender by Vendor. 1`1. Indemnification. Vendor agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees, agents and volunteers from and against any and all claims, demands, losses, damages, costs and liability of any kind or nature which the City, its officers, officials, employees, agents or volunteers may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of or from the Equipment or Vendor's maintenance thereof, excepting only liability arising out of the sole negligence of the City. '12. Contract Documents. a. This Agreement includes the following documents, which are by this reference incorporated herein and made a part hereof: (1) Scope of Work Exhibit A; (2) Service rate schedule hereto as Exhibit B. '13. Default of Vendor. a. The Vendor's failure to comply with the provisions of this Agreement shall constitute a default. In the event the Vendor is in default for cause under the terms of this Agreement, the City shall have no obligation or duty to continue compensating Vendor for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Vendor. If such failure by the Vendor to make progress in the performance of work hereunder arises out of causes beyond the Vendor's control, and without fault or negligence of the Vendor, it shall not be considered a default. b. If the City Manager or his delegate determines the Vendor is in default in the performance of any of the terms or conditions of this Agreement, it shall service the Vendor with written notice of the default. The Vendor shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event the Vendor 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. 14. Liability Insurance. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). (2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). (3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. 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 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) Worker Compensation: $1,000,000 per accident for bodily injury or disease. c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. -3- 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. (5) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. f. Verification of Coverage. Consultant shall furnish the City with original endorsements 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. 15. Survival of Representations and Warranties. All representations, warranties, covenants and agreements of the parties contained in this Agreement shall survive the execution, delivery, installation and performance of this Agreement. 16. Leqal Responsibilities. The Vendor 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 Vendor shall at all times observe and comply with all such laws and regulations. The City, and its officers and -4- employees, shall not be liable at law or in equity occasioned by failure of the Vendor to comply with this section. 17. Prohibited Interest. No officer, or employee of the City of Temecula shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Vendor, or Vendor's sub-contractors for this project, during his/her tenure or for one year thereafter. The Vendor hereby warrants and represents to the City that no 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 Vendor or Vendor's sub-contractors on this project. Vendor further agrees to notify the City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 18. Independent Contractor. Vendor 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 the Vendor shall at all times be under the Vendor's exclusive direction and control. Neither the City nor any of its officers, employees, agents or volunteers shall have control over the conduct of the Vendor or any of the Vendor's officers, employees, agents or volunteers except as set forth in this Agreement. Vendor 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 of Temecula. Vendor shall not incur or have the power to incur any debt, obligation or liability whatever against the City, or bind the City in any manner. 19. Assi,qnment. The Vendor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. 20. 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 Vendor at: Temecula Copiers 41892 Enterprise Circle S. Suite F Temecula, CA 92590 To City at: City of Temecula 43200 Business Park Drive Temecula, California 92589 Attn: City Manager 21. Governinq Law. The City and Vendor 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. 22. Entire Aqreement. 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 based solely upon the representations set forth herein -5- and upon each party's own independent investigation of any and all facts such party deems material. 23. Authority To Execute This Aqreement. The person or persons executing this Agreement on behalf of Vendor warrants and represents that he or she has the authority to execute this Agreement on behalf of the Vendor and has the authority to bind Vendor to the performance of its obligations hereunder. IN WITNESS WHEREOF, the parties to this Agreement have duly executed in on 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 Vendor Temecula Copiers 41892 Enterprise Circle S. Suite F Temecula, CA 92590 (909) 676-8885 By: Title: By:. Title: Two Signatures Required for Corporations -6- EXHIBIT A CITY OF TEMECULA REQUEST FOR PROPOSAL Photo Copier Maintenance, Service and Performance Contract Specifications / Scope of Work 1. EQUIPMENT TO BE REPLACED: None of the existing equipment will be removed until the new equipment has been delivered, installed, and accepted by the City. The successful Vendor will provide delivery, installation, training, and supplies (excluding paper). All costs for such services will be included in the Vendor's cost proposal and subsequent contract price schedule(s). 2. COPIER REQUIREMENTS: Each model of copier offered under this proposal, or added during the term of the contract, shall comply with all the general requirements stated herein, plus those specific requirements for individual departments that are applicable. Each model of copier offered shall perform in an acceptable manner under all working conditions appropriate to the site installed, including, but not limited to: multiple users, environmental differences, and extended hours of use (up to 24 hours/day, 7 days/week). Copiers shall be new with no used or refurbished parts (demonstrator copiers are considered used and are not acceptable for the purpose of this proposal), state-of-the- art equipment, with recommended volumes of the manufacturer, and at least equal in c.p.m, performance and capability to those listed in this Exhibit A requirement. All copiers should be from the same manufacturer in order to facilitate service and supply availability and operator training. Consoles or stands will be required as needed for any machine offered, if necessary. Unless otherwise detailed in the Vendor proposal, the equipment proposed hereunder shall include all peripheral equipment and installation material needed to provide a turn-key system that meets all terms, conditions, and specifications herein. Any digital copiers to be networked must be Netware 5.0, NDPS, and Windows 2000 compatible with a 10/100Base TX Ethernet connection. All appliances, devices, equipment, and related materials shall be identified, approved, labeled, and listed by nationally recognized qualified testing laboratories. These approvals shall state the appliances or materials meet appropriate standards and have been tested and found suitable for the use as specified. Equipment must be furnished with all protection devices in accordance with the requirements of CAL-OSHA in effect at the time of delivery. All equipment must also meet all "Energy Star" specifications for energy ef~ciency. In addition, all equipment shall either have built-in surge protection devices or else Vendor must provide surge protectors at no additional cost to the City. 3. COPIER PERFORMANCE: Each copier and features supplied by the successful Vendor will be expected to perform their intended functions, operate satisfactorily, and produce copies of acceptable quality for a minimum of 90% of the available work time. Any copier feature that does not meet the 90% measurement for any thirty (30) consecutive days (week-ends included), or is un-repairable shall be replaced with a -*7- copier of the same or better specifications at no additional cost. The Director of Support Services for the City shall be the final authority for determining when a copier must be replaced due to unsatisfactory performance. 4. MAINTENANCE SERVICE REQUIREMENTS: The Vendor will provide preventative and remedial maintenance service during the City's normal working hours - 8:00 a.m. to 5:00 p.m., Monday through Friday. Preventative maintenance shall be performed in accordance with the manufacturer's specifications. On-cell remedial maintenance shall be provided on an "as needed" basis as determined by the City. The vendor shall have an adequate inventory of spare parts immediately available for repairs and keep all equipment operating at least 90% of the available work time. In a situation where the delivery of an out-of-stock part is anticipated to take more than twenty-four (24) hours, the Vendor shall provide a temporary back-up copier of similar specifications at no charge to the City if requested. Copier maintenance shall be performed by fully trained, and qualified technicians. The Vendor will furnish, install, and maintain all equipment in accordance with manufacturers specifications. The City shall not be charged for copies made by the maintenance repair technicians during preventative or remedial maintenance service. The capability to stop the copy counter when ideally, the cost for maintenance service should, at a minimum, include: labor, transportation, all replacement parts, black starter, imaging units as required, black toner, developer, fuser oil, fuser lubricants, fuser agents, cartridges, drums and shipping costs for replacement pads, and standard equipment and supplies. 5. RESPONSE TIME: Vendor shall provide a local telephone number where service personnel can be reached on an "on call" basis, Monday through Friday 8:00 a.m. to 5:00 p.m. The Vendor shall respond on-site to verbal service calls within nine (9) workday hours after notification of malfunction from the City. All equipment must be repaired, or replaced with a loaner if requested, within twenty-four (24) hours of notification of equipment failure. 6. REPORTS: The Vendor shall supply monthly reports showing the monthly volume usage by the City at each copier installation. Each copier shall be identified in the report by the location, copier model, and serial number. It shall also contain: the period of time covered for the monthly volumes, and actual monthly meter readings. The Vendor shall also provide semi-annual reports displaying the maintenance service history at each copier installation. The maintenance summary shall include: Date and time each service call was received by the Vendor. Date and time Vendor dispatched a service technician. Description of problem. Description of repair. Indication of when repair was completed. Meter readings at time of repair. Average number of copies made between service calls. The City reserves the right to request reports on individual copiers any time a review is required during the contract period. These reports shall be provided to the City at no additional cost and mailed to: City of Temecula Attn: Frank Carranza P O Box 9033 Temecula, CA 92589-9033 -8- 7. DELIVERY: The Vendor shall deliver each copier to the site specified by the City and install and make ready for use. All copiers shall be delivered, installed and made ready for use no later than thirty (30) days from date of order. The Vendor shall be expected to provide the City written confirmation of delivery date, type, model number, and serial number of copiers delivered to the City within seven (7) days following installation. 8. DELIVERY COORDINATION: The selected Vendor shall provide the City a delivery date and schedule for the equipment to be installed at the time of contract execution. This is important, as the City will need to coordinate the removal of the existing equipment with the delivery of the new equipment. It shall be the Vendor's responsibility to examine each delivery site and to advise the City of any safety, space, or special requirements that are to be met prior to delivery of equipment. It shall be the City's responsibility to have the site properly prepared for the delivery of equipment. If any special electrical requirements (e.g. surge suppresser's, isolation transformers, surge protectors, power filters, or dedicated lines, etc.) are required by the Vendors equipment, the coordination, special equipment and costs to comply with these requirements will be the sole responsibility of the Vendor. 9. TRAINING: Training shall be provided to the personnel of the delivery sites on the same day or within a day following the delivery of equipment. Training shall be provided as often as required at no additional charge to the City. Training shall include instructions on the proper use of the equipment and features, briefing on the safety precautions, how to load paper or toner, and how to clear paper jams. The technician shall also brief the City Central Services Coordinator on the higher level equipment operation and provide a telephone number, serial number, and/or customer number to place service calls and supply orders. 10. INVOICING: Vendor shall prepare separate invoices for each copier installation on a monthly basis in arrears, showing a minimum of the following information: a. Invoice date and number. b. Purchase Order number. c. Location, make, model and serial number. d. Number of copies invoiced. e. Current and previous meter readings. f. Date of meter readings. It shall be the Vendor's responsibility to establish procedures with the City Central Services Coordinator to .obtain the meter readings from using departments. Invoices must be submitted to: City of Temecula Attn: Accounts Payable P O Box 9033 Temecula, CA 92589-9033 Note: City payment terms are net 30 days upon receipt of approved invoice. -9- EXHIBIT B Temecula Copier Service Rate Schedule - 10- 0 0 0 0 0 0 0 0 0 0 ~0 0 0 ITEM 7 APPROVAL CITY ATTORNEY DIRECTOR OF FINANC~___ CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: James Domenoe, Chief of Police~ DATE: March 28, 2002 SUBJECT: Purchase of Police Motomycles RECOMMENDATION: That the City Council approve the pumhase of two (2) police motomycles from Quaid Harley Dav[dson for a total amount of $38,307.24. BACKGROUND: These motorcycles are replacements for the aging Kawasaki motorcycles presently being used by the motorcycle officers for City patrol and enforcement activities. The Kawasaki motomycles have high mileage and are requiring repairs on a regular basis. The replacement of police motorcycles generally occurs at 42,000 miles. In April and May 2001, a review was conducted of motorcycles generally used for police service. Reviewed were the BMW, Harley Davidson and Kawasaki and many factors were considered. Quaid Harley Davidson was determined to be the most cost effective option because of the performance factors and the "buy back" program. After considering the pumhase buy back program with Quaid Harley Davison the net cost to the City is $16,307.24 for both motorcycles. Essentially, both motorcycles will be purchased back from the City after three years for a total amount of $22,000. A request for quote was sent to three (3) Harley Davidson authorized dealers. Staff was in communication with all of the vendors to ensure a complete understanding of the RFP and bid process. Additionally, the tocation of the Quaid dealership allows for prompt service for any scheduled or unscheduled repairs. There are currently six motor officers staffed within the Traffic Division; four ara or will shortly be equipped with Harley Davidson motorcycles. The purchase of these two motorcycles will allow the remaining two motor officers to be uniformly equipped. Vendor Model Purchase Price Cost After Buy Back Quaid Harley Davidson Police Road King $19,153.62 $8,153.62 Skip Fordyce Motorcycle Center Police Road King $18,303.88 $8,503.88 Harley's House of Harley's Police Road King $19,157.77 $9,157.77 FISCAL IMPACT: The Temecula Police recently received final approval of the State of California Office of Traffic Safety (OTS) Grant. This grant will reimburse the cost of these motorcycles. Adequate funds exist within the Police Department operating budget to cover the additional expense of this purchase. A'I-I'ACHMENT: Motorcycle Vendor List Motorcycle Vendor List Harley's House of Harley's 555 South Coast Highway, Oceanside, CA 92054 Skip Fordyce Motorcycle Center 7840 Indiana Ave, Riverside, CA 92504 Quaid -Temecula Harley-Davidson 28822 Front St, #205-207 Temecula, CA 92590 ITEM 8 APPROVAL ClTY ATTORNEY DIRECTOR OF FINANCE ~,( ClTY MANAGER ~,~ ~' CITY OF TEMECULA AGENDA REPORT TO: City C~ FROM: Grant ~tes, Assistant to the City Manager DATE: March 26, 2002 SUBJECT: Opposition of Assembly Bill 680 (Steinberg)-Smart Growth Act of 2002 PREPARED BY: Aaron Adams, Sr. Management Analyst RECOMMENDATION: That the City Council consider adopting the following resolution. RESOLUTION NO. 02-._ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA OPPOSING ASSEMBLY BILL 680 (STEINBERG) WHICH PROPOSES THE ALLOCATION OF SALES TAX BE BASED ON SITUS, POPULATION AND "SMART GROWTH" PRINCIPLES BACKGROUND: At the request of Councilmember Jeff Comerchero, the following request for a City position of opposition is being presented. On January 30 , the State Assembly approved the Smart Growth Act of 2002 and was sent to the Senate for consideration. AB 680 proposes a six-county"pilot" program to allocate the future growth in the local share of sales tax via a formula based on situs, population and "smart growth" principles. AB 680 will reallocate all of the growth in a City's 1% share of Sales Tax revenue based on a formula set by the State rather than the provisions of the existing Bradley-Burns Sales Tax Act for agencies in the Sacramento County region. It also puts cities outside the Sacramento re.qion at a disadvantaqe when competin.q for State transportation and housinq funds. Despite claims to the contrary, AB 680 does affect all cities and counties in the State. There are provisions in the bill that grant "bonuses and priorities" for several State sources of transportation, infrastructure and library funding to cities and counties in the Sacramento Region at the expense of cities and counties in other parts of the state-including the City of Temecula. With the loss of Property Tax Revenues to the State through the ERAF process, the City's 1% share of Sales Tax revenues is the City's largest and most important revenue source. It is vitally important for the City Council to protect Sales Tax revenue as a fully local and discretionary revenue source to meet the needs of the community. FISCAL IMPACT: None at this time. RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA OPPOSING ASSEMBLY BILL 680 (STEINBERG) WHICH PROPOSES THE ALLOCATION OF SALES TAX BE BASED ON SITUS, POPULATION AND "SMART GROWTH" PRINCIPLES THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: WHEREAS, AB 680 diminishes local control as local elected leaders and taxpayers not state politicians, should decide how the sales tax revenues are distributed; and WHEREAS, AB 680 jeopardizes vital services provided by local governments; and WHEREAS, AB 680 threatens the funding needed to provide vital and essential services for residents as many cities rely on sales taxes as the primary source of funding for emergency response, police and fire protection, street repair and lighting, libraries, parks and other services; and WHEREAS, AB 680 needlessly interrupts the local planning process by redistributing the transportation funds that already are dedicated to projects within a region; and WHEREAS, the Sacramento region, like the rest of the state, faces tremendous challenges that require cooperation among local governments as the region deals with the impacts of booming population growth and development; and WHEREAS, AB 680 penalizes the counties and cities outside of Sacramento, creating unnecessary friction between local governments and an inherent conflict over funding allocation; and WHEREAS, AB 680 allows cities to keep only one-third of sales tax growth revenues without limitations and city revenues already are unpredictable because of the billions of dollars lost due to the state's earlier reallocation of property tax revenues; and WHEREAS, for the past 25 years, state and federal support for local government has plummeted, while the number of mandated programs and services has grown; WHEREAS, AB 680 could be applied to every city in the state; NOW, THEREFORE, BE IT RESOLVED THAT the City of Temecula hereby opposes the passage of Assembly Bill 680 (Steinberg) by the Legislature, and directs the City Council to notify Assemblyman Steinberg, the Governor, Senator Haynes and Assemblyman Hoilingsworth of its opposition. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula at a regular meeting held on the 26th day of March, 2002. Resos\99-88 I Ron Roberts, 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 Resolution No. 99-88 was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 26th day of March, 2002, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk Resos\99-88 2 ITEM 9 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: March 26, 2002 SUBJECT: Tract Map No. 26521, Located south of Rancho Vista Road, north of Green Tree Road, and west of Via Sierra PREPARED BY: _.~.,Ronald J. Parks, Deputy Director of Public Works ~]Clement M Jimenez, Associate Engineer RECOMMENDATION: That the City Council: 1. RATIFY the approval of Subdivision Improvement Agreement for Tract Map No. 26521. 2. AUTHORIZE the City Manager to sign the Subdivision Improvement Agreement 3. ACCEPT Faithful Performance Bond, Labor and Materials Bond, and Monument Bond as security for the agreements. BACKGROUND: Tract Map No. 26521 is a ten (10) lot residential subdivision, of 9.5 acres, located at the end of Green Tree Road, south of Rancho Vista Road. Thera were several extensions of time before the final map was approved by City Council on July 22, 1997. The final map subsequently recorded and street improvement plans were eventually signed. However, the City Council approval was not specific in approving the Subdivision Improvement Agreement and Bonds. The purpose of this staff report is to ratify that the approvals of the Subdivision Improvement Agreement and Bonds were included in the City Council hearing on July 22, 1997. The Subdivision Improvement Agreement was signed bythe developer and notorized. In addition, bonds were posted by American Motorists Insurance Company as security for improvements as follows: Faithful Performance Bond 3SM 909 338 00 in the amount of $251,500 as security for street and drainage improvements. Labor and Materials Bond 3SM 909 338 00 in the amount of $125,750 to cover labor and materials. Monument Bond 3SM 909 340 00 in the amount of $5,000 as security for monumentation. Staff recommends you ratify the acceptance of this agreement, accept the bonds, collected as security, and requests the authorization of the City Manager's signature on the agreement. 1 r:~agdrpt~002~0326\tm26521 .map FISCAL IMPACT: None ATTACHMENTS: 1. Location Map 2 r:~gdrpt~2002\O326\tm26521 .map TRACT MAP 26521 LOCATION MAP Project Site' /~ ItYPOT/.-/EUCAL TO~/N~/-t/p 7,5, ~AAI~E £k/, .~. Location Map ITEM 10 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE __..~ CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: .City Manager/City Council FROM: q(~)lWilliam G. Hughes, Director of Public Works/City Engineer DATE: March 26, 2002 SUBJECT: Tract Map No. 29639, Harveston Erosion Control Agreement and Bond located west of Margarita Road, east of the 1-15 Freeway, and north of Winchester Road PREPARED BY: ~rf'Ronald J. Parks, Deputy Director of Public Works Clement M. Jimenez, Associate Engineer RECOMMENDATION: That the City Council ACCEPT the Erosion Control Agreement for Tract Map No. 29639 and the Erosion Control Bond collected to secure erosion control improvements. BACKGROUND: The mass grading plans for Tract Map No. 29639-1 and portions of Tract Map No. 29639 have been approved, a grading permit issued, and grading is underway. Erosion Control is required as part of the grading operation. Per Condition No. 44 of the approved Conditions of Approval, the developer for Tract Map No. 29639, is responsible for posting security and entering into an agreement guaranteeing the grading and erosion control improvements. An Erosion Control Bond was posted by The American Insurance Company as follows: Erosion Control Bond No. 111 2750 7520 in the amount of $89,023.20 as security for grading and erosion control improvements. FISCAL IMPACT: None A'i-DACHMENTS: 1. Vicinity Map 1 r:~agd rpt~2002\0326\tm29639.erosionbond&agmt TRACT MAP 29639 VICINITY MAP VICINITY MaP NOT TO SCALE ITEM 11 APPROVAL ~ CITY ATTORNEY "~4:~/-~ DIRECTOR OFFINAN~ CITY MANAGER ~'~ CITY OF TEMECULA AGENDA REPORT TO: City ManagedCity Council FROM: ~,,[~,William G. Hughes, Director of Public Works/City Engineer DATE: Mamh 26, 2002 SUBJECT: Tract Map No. 30088, Harveston Erosion Control Agreement and Bond located west of Margarita Road, east of the 1-15 Freeway, and north of Winchester Road PREPARED BY: {L~Ronald J. Parks, Deputy Director of Public Works Clement M. Jimenez, Associate Engineer RECOMMENDATION: That the City Council ACCEPT the Erosion Control Agreement for Tract Map No. 30088 and the Erosion Control Bond collected to secure erosion control improvements. BACKGROUND: The rough grading plans for Tract Map No. 30088 have been approved, a grading permit issued, and grading is underway. Erosion Control is required as part of the grading operation. Per Condition No. 42 of the approved Conditions of Approval, the developer for Tract Map No. 30088, is responsible for posting security and entering into an agreement guaranteeing the grading and erosion control improvements. An Erosion Control Bond was posted byTheAmedcan Insurance Company as follows: Erosion Control Bond No. 111 2750 7892 in the amount of $9,000 as security for grading and erosion control improvements. FISCAL IMPACT: None ATTACHMENTS: 1. Vicinity Map 1 r:~agdrpt~002\0326\tm30088.erosion bond&agmt TRACT MAP 30088 VICINITY MAP VICINITY MAP NOT TO SCALE ITEM 12 APPROVAL CITY ATTORNEY DIRECTOR OF FINANC,.I~-~j~ ClTY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council h FROM: ./~/~illiam G. Hughes, Director of Public Works/City Engineer DATE: March 26, 2002 SUBJECT: Approval of the Pro-Qualified Contractors and the Plans and Specifications for the Mercantile Building Seismic Retrofit Project, Project No. PW01-20, and Authorization to Solicit Construction Bids PREPARED BY: Greg Butler, Senior Engineer Ward Maxwell, Associate Engineer RECOMMENDATION: That the City Council: 1. Approve Lehigh Construction Company, Los Angeles, CA., 2H Construction, Inc., Long Beach, CA., M.R. Bracey Construction Company, Inc., Ontario, CA., Sea Pac Engineering, Inc., Reseda, CA., SPS Inc., Anaheim, CA, as Pro-Qualified Contractors eligible to submit bids for the Mercantile Seismic Retrofit Project. 2. Approve the Construction Plans and Specifications and authorize the Department of Public Works to solicit construction bids from the pro-qualified contractors for the Mercantile Building Seismic Retrofit Project, Project No. PW01-20. BACKGROUND: The Mercantile Building was purchased bythe City of Temecula in September, 1998. The Building is a historically significant structuro constructed from un-roinforced masonry. The building requires seismic retrofitting which requires contractors that have special expertise and recent proven experience in Seismic Retrofit. On December 11, 2001, City Council authorize.the Department of Public Works to solicit and pre- qualify contractors to per[orm the work required for the Seismic Retrofit. On February 7, 2002 the City invited contractors to submit the Request for Qualifications (RFQ-001), with a final filing date of March 7, 2002. Six (6) contractors responded to the RFQ for which five (5) have been pro-qualified. The sixth contractor did not have the required license to bid the project, but is pro-qualified as a potential sub-contractor to the successful bidder on the project. The list of pre-qualified contractors is: Lehigh Construction Company Los Angeles, CA. 2H Construction, Inc. Long Beach, CA. M.R. Bracey Construction Company, Inc. Ontario, CA. Sea Pac Engineering, Inc. Reseda, CA. SPS Inc. Anaheim, CA 1 r:\agd~t~2002\o32602\PW01-20Bid The Specifications and Contract Documents have been completed and the project is ready to be advertised for construction bids. The Specifications are available for review in the City Engineer's office. The Engineer's Construction Estimate for this project is $225,000. FISCAL IMPACT: The funding for the Mercantile Building Seismic Retrofit Project will be provided through the Redevelopment Agency Fund Balance. The Agency Board of Directors will be requested to appropriate the necessary funding upon award of the contract. r:\agd rpt~OO2\032602\PW01-20Bid ITEM 13 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE ./:[4~ CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: CJ,/~Villiam G. Hughes, Director of Public Works/City Engineer DATE: March 26, 2002 SUBJECT: Award the Construction Contract for Pala Road Improvements Phase I (Project No. PW99-11 ) PREPARED BY: Greg Butler, Senior Engineer Amer Attar, Senior Engineer Steven Beswick, Associate Engineer RECOMMENDATION: That the City Council: 1. Award a construction contract to R.J. Noble Company for the Pala Road Improvements Phase I (Project No. PW99-11) in the amount of $456,172.26 and authorize the City Manager to execute the contract. 2. Authorize the City Manager to approve change orders not to exceed the contingency amount of $45,617.23, which is equal to 10% of the contract amount. 3. Accelerate an appropriation of $700,000 from Reimbursement Revenues from the Temecula Band of Luise~o Mission Indians. BACKGROUND: Pala Road Improvements Phase I (Project No. PW99-11) will widen Pala Road from two lanes to four lanes from Pala Road Bridge to Wolf Valley Road and modify the striping and the traffic signals at Loma Linda Road and at Wolf Valley Road accordingly. The ultimate widening from four lanes to six lanes is in final design and is pending formation of the Wolf Creek Specific Plan Community Facilities District. Eight (8) bids for the project were publicly opened on March 21,2002. The results of the bids ara as follows: 1. R.J. Noble Company ..................................................................... $456,172.26 2. McLaughlin Mining & Engineering ................................................ $479,972.00 3. Griffith Company ........................................................................... $486,480.00 4. All American Asphalt ..................................................................... $495,813.00 5. Holland-Lowe Const ...................................................................... $518,995.00 6. Vance Corporation ........................................................................ $569,826.00 7. Silvia Construction Inc .................................................................. $589,425.25 8. J.D. Paving, Inc ............................................................................. $634,581.06 The engineer's estimate is $700,000.00. R:~AGEN DA REPORTS~2002~032602~PW99-11 PHASEI~WD,DOC Staff has reviewed the bid proposals and found R.J. Noble Company to be the lowest responsible bidder for this project. R.J. Noble Company has extensive experience in road widening and traffic signal projects. They have successfully completed similar projects for the City in the past. The construction period for this project is 30 working days. Work will begin in April 2002 and is scheduled to be completed in June 2002. A copy of the bid summary is available for review in the City Engineer's office. The Public Works Department is also soliciting qualifications from engineering firms to design the sound wall along Pala Road. The sound wall design will be presented to City Council in April. FISCAL IMPACT: The Pala Road Improvements Phase I (Project No. PW99-11) is a Capital Improvement Project funded through an agreement between the City and the Temecula Band of Luise~o Mission Indians. An acceleration of an appropriation of funds in the amount of $700,000 is necessary from this agreement for the Pala Road Improvements Phase I to cover the construction contract amount of $456,172.26 plus the 10% contingency amount of $45,617.23 for a total construction cost of $501,789.49. ATTACHMENT: 1. Project Location 2. Project Description 3. Contract R:~AGENDA REPORTS~20021032602~PW99-11PHASEI.AWD,OOC CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT CONTRACT FOR PROJECT NO. PW99-11 PALA ROAD PHASE I IMPROVEMENTS THIS CONTRACT, made and entered into the 26~ day of March, 2002, 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. PW99-11, Pala Road Phase I Improvements, Insurance Forms, this Contract, and all modifications and amendments thereto, the State of California Department of Transportation Standard Specifications (1992 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 the Joint Cooperative Committee of the Southern California Chapter of the American Associated General Contractors of California (hereinafter, "Standard Specifications") as amended by the General Specifications, Special Provisions, and Technical Specifications for PROJECT NO. PW99-11, Pala Road Phase I Improvements. Copies of these Standard Specifications are available from the publisher: Building New, Incorporated 3055 Overland Avenue Los Angeles, California 90034 (213) 202-7775 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. PW99-11, Pala Road Phase I Improvements. 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. CONTRACT CA-1 R:~CIP~PROJECTS/PW99\99-11\INTERIM/2002 INTERIM 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. PW99-11, PALA ROAD PHASE I IMPROVEMENTS 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: FOUR HUNDERED FIFTY SlX THOUSAND ONE HUNDRED SEVENTY TWO DOLLARS and TWENTY SIX CENTS ($456,172.26), the total amount of the base bid. CONTRACTOR agrees to complete the work in a period not to exceed THIRTY (30) workin.q 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. 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 CONTRACT CA-2 R:\CIP\PROJ ECTS~PW99\gg-11\INTERIM~2002 INTERIM Contract 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. Padial 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 five thousand dollars ($5,000.00) 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. 6. 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 diem wages and the general r~te 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. 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. CONTRACT CA-3 R:\CIP\PROJ ECTS~°W99~99-11\INTERIM~2002 INTERIM Contract 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. 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 CONTRACT CA~ R:~CIP\PROJECTS~PW99\99-11\INTERIM\2002 INTERIM Contract 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. 16. 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. 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: Street Address: William G. Hughes William G. Hughes Director of Public Works/City Engineer Director of Public Works/City Engineer City of Temecula City of Temecula P.O. Box 9033 43200 Business Park Drive Temecula, CA 92589-9033 Temecula, CA 92590-3606 CONTRACT CA-5 R:\CIP\PROJ ECTS~PW99\99-11\INTERIM~002 INTERIM Contract 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 15505 E. Lincoln Ave. Orange, CA 92865 (714) 637-1550 Michael J. Carver, President DATED: ClTY OFTEMECULA ShawnD. Nelson, CityManager APPROVED AS TO FORM: Peter M. Thorson, City Attorney ATTEST: Susan W. Jones, CMC, City Clerk CONTRACT CA-6 R:\CIP~PROJECTS~PW99~99-11\INTERIM~20~2 INTERIM Contract ITEM 14 APPROVAL ~, ~ City ATTORNEY ~1 D RECtOR OF FINANCE GENERAL MANAGER t_~ I CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: March 26, 2002 SUBJECT: Corporation Grant Deed for the Proposed New Temecula Library Site (PW00-07CSD) and Fire Station #84 PREPARED BY: Amer Attar, Senior Engineer RECOMMENDATION: That the City Council: 1. Approve the Corporation Grant Deed for the Proposed New Library Site, Project Number PW00-07CSD. 2. Approve the Corporation Grant Deed for Fire Station #84. BACKGROUND: The City of Temecula currently owns Assessor Parcel Number 945-050-016. This parcel fronts Pauba Road on the south side and is adjacent to the parcels that encompass the Rancho California Sports Park on the north side.. The proposed new library site and the existing Fire Station #84 lie within this parcel. We are in the process of applying for a State grant to build the new library. One of the grant requirements is that the property of the proposed new library site must be appraised and the value is considered as part of the grant application and potential grant award. In addition, the State requires that the agency applying for the grant must designate the property and the proposed building for library use. In order to meet these requirements and unnecessarily encumber the entire existing parcel, it has become necessary to create a separate and distinct parcel for the proposed new library site. In addition segregating the parcel that includes Fire Station #84 from the existing parcel would give it its own title and deed. As a separate parcel, Fire Station #84 site can easily be identified in any future considerations. The attached two Corporation Grant Deeds will separate the site for the proposed new library and Fire Station #84 site from Assessor Parcel Number 945-050-016. Each Grant Deed will create a separate and distinct parcel for each site. R:\AGENDA RE PORTS~2002\O326021PW00A)7CSDLibra~Grant Deed.dcc FISCAL IMPACT: None ATTACHMENTS: 1. Corporation Grant Deed for the Proposed New Library Site including Legal Description, Exhibit "A", and Plat Map. Exhibit "B." 2. Corporation Grant Deed for Fire Station #84 Site including Legal Description, Exhibit "A", and Plat Map. Exhibit "B." R:'~,G EN DA RE PORTS~2002\032602\PW00-07C S DLib raryGrant Deed,doc EXEMPT RECORDING REQUESTED BY City of Temecula PER GOV'T CODE § 27383 AND WHEN RECORDED MAIL TO: Office of the City Clerk City of Temecula P.O. Box 9033 Temecula, CA 92589-9033 MAIL TAX STATEMENTS TO: City of Temecula P.O. Box 9033 Temecula, CA 92589-9033 SPACE ABOVE THIS LINE FOR RECORDER'S USE CORPORATION GRANT DEED The undersigned grantor declares: FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF TEMECULA, a municipal corporation organized under the laws of the State of California, hereby grants to: The CITY OF TEMECULA, a municipal corporation, the following described real property in the City of Temecula, County of Riverside, State of California as described on Exhibit "A", and as shown on Exhibit "B" attached hereto and incorporated herein by this reference as though set forth in full. Executed on ,2002, at , California. City of Temecula By: Shawn D. Nelson, City Manager ATTEST: By: Susan W. Jones, CMC, City Clerk APPROVED AS TO FORM: By: Peter Thorson, City Attorney STATE OF CALIFORNIA COUNTY OF RIVERSIDE On before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/aro subscribed to the within instrument and acknowledged to me that in he/she/they executed the same in his/her/their authorized capacity(les), 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 CONSENT The City of Temecula hereby consents to the grant of real property set forth above. City of Temecula By: Shawn D. Nelson, City Manager ATTEST: By: Susan W. Jones, CMC, City Clerk APPROVED AS TO FORM: By: Peter Thorson, City Attorney EXHIBIT "A" EXHIBIT "A" LEGAL DESCRIPTION FOR TEMECULA PUBLIC LIBRARY THAT PORTION OF RANCHO TEMECULA, IN THE CiTY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS GRANTED BY THE GOVERNMENT OF THE UNITED STATES OF AMERICA TO LUIS VlGNES BY PATENT; DATED JANUARY 18, 1860, AND AS SHOWN BY MAP ON FILE IN BOOK 1, PAGE 37 OF PATENTS, RECORDS OF SAN DIEGO COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF PARCEL 1 AS SHOWN ON PARCEL MAP 8840 FILED IN BOOK 41, PAGES 54 AND 55, RECORDS OF RIVERSIDE COUNTY, SAID POINT BEING ON THE CENTERLINE OF PAUBA ROAD AND BEING MARKED BY A 1-~ IRON PIPE TAGGED L.S. 3160 PER SAID MAP, SAID POINT ALSO BEING A POINT ON A CURVE WITH A RADIAL BEARING OF SOUTH 02052'23'' WEST; THENCE LEAVING SAID CENTERLINE POINT ALONG SAID RADIAL LINE NORTH 02052' 23" EAST, 44.00 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY OF PAUBA ROAD, SAID POINT BEING ON A CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 1956.00 FEET; THENCE EASTERLY ALONG SAID CURVE, THROUGH A CENTAL ANGLE OF 07°55'31", AN ARC DISTANCE OF 270.56 FEET TO A POINT ON SAID CURVE THROUGH WHICH A RADIAL LINE BEARS SOUTH 05003' 08" EAST, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID RIGHT-OF-WAY ALONG SAID RADIAL LINE, NORTH 05°03'08" WEST, 87.22 FEET; THENCE NORTH 33°50'19'' EAST, 99.16 FEET; THENCE NORTH 72°18'47'' EAST, 110.14 FEET THENCE NORTH 41045'22'' EAST, 85.62 FEET; THENCE NORTH 89044'24'' EAST, 136.97 FEET; THENCE NORTH 23000'04" EAST, 194.55 FEET; THENCE NORTH 80027'37'' EAST, 280.30 FEET; THENCE SOUTH 11°01'46" WEST, 240.27 FEET; THENCE SOUTH 17045'09'' WEST, 66.36 FEET; Page 1 of 2 danuary 17, 2002 BY: R. Pisa Ck'd BY: B. Fox C:\I\LEGALDES\TEMELIBLE G.wpd THENCE SOUTH 16o32'59'' EAST, 18.52 FEET TO A POINT ON SAiD NORTHERLY RIGHT- OF-WAY OF PAUBA ROAD; THENCE SOUTH 73°27'01TM WEST, 359.91 FEET ALONG SAID NORTHERLY RIGHT-OF-WAY TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 1956.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 11°29'51'', AN ARC DISTANCE OF 392.51 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING 192154.40 SQUARE FEET OR 4.41 ACRES, MORE OR LESS. THIS DESCRIPTION IS ALSO BEING SHOWN ON THE ATTACHED "EXHIBIT A" MAP AND THEREBY BEING MADE A PART HEREOF. PREPARED UNDER MY SUPERVISION: BRIAN D. FOX' ~' / // PROFESSIONALLAND SURVEYOR NO. 7171 REGISTRATION EXPIRES 12/31/03 Page 2 of 2 January 17, 2002 BY: R. Pisa Ck'd BY: B. Fox C:\1 \LEGALDES\TEMELIBLE G.wpd EXHIBIT "B" EXHIBIT "B" '37" ~ I t~.9' _~ ~:.~--~-- _--- .I ...... ...... ~'~ ~ ~ / I NUMmi mR[~N ~ ~;; · .... NW ~ P~ 1,. , , I ~ IN ~19 E ~99.16 OF P~ ~ ~, / / ~c)c'~l ~4A~/~/In ]~ IN 7~18'47" E :110.14' ~NO~ ~ A 1-1/2'~ ~ ~~ JYJ~ ~ L4 N 41'~'~" E ~.62' , '~'"~'~?~ / / DETAIL '1' / I ~ ~ ~ KEY MAP S~: 1"~ 1000' CITY OF TEMECAJLA ' 43200 BUSINESS PARK DR. , , ~,/~'~/]~ .~IUNICIPAL CONSULTANTS TEMECULA, CA 92590 R[G~SmAI~ON ,SURV~ORS/GPS (909) 694-6411 IDCPII~.S · PLANNERS 12- - A.P.N. 945-050-016 , [-/'7.~4~.~'.~ 151 South Girard Street. Hemet. Ca 92544 · (909) 652-4454 ~'~w~.~d~ FAX (909) 766-8942 E-MAIL cozad@ivic.net EXEMPT RECORDING REQUESTED BY City of Temecula PER GOV'T CODE § 27383 AND WHEN RECORDED MAIL TO: Office of the City Clerk City of Temecula P.O. Box 9033 Temecula, CA 92589-9033 MAIL TAX STATEMENTS TO: City of Temecula P.O. Box 9033 Temecula, CA 92589-9033 SPACE ABOVE THIS LiNE FOR RECORDER'S USE CORPORATION GRANT DEED The undersigned grantor declares: FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF TEMECULA, a municipal corporation organized under the laws of the State of California, hereby grants to: The CITY OF TEMECULA, a municipal corporation, the following described real property in the City of Temecula, County of Riverside, State of California as described on Exhibit "A", and as shown on Exhibit "B" attached hereto and incorporated herein by this reference as though set forth in full. Executed on ,2002, at , California. City of Temecula By: Shawn D. Nelson, City Manager ATTEST: By: Susan W. Jones, CMC, City Clerk APPROVED AS TO FORM: By: Peter Thorson, City Attorney STATE OF CALIFORNIA COUNTY OF RIVERSIDE On before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that in he/she/they executed the same in his/her/their authorized capacity(les), 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 CONSENT The City of Temecula hereby consents to the grant of real property set forth above. City of Temecula By: Shawn D. Nelson, City Manager ATTEST: By: Susan W. Jones, CMC, City Clerk APPROVED AS TO FORM: By: Peter Thorsen, City Attorney EXHIBIT "A" EXHIBIT "A" LEGAL DESCRIPTION FOR TEMECULA FIRE STATION THAT PORTION OF RANCHO TEMECULA, IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS GRANTED BY THE GOVERNMENT OF THE UNITED STATES OF AMERICA TO LUIS VIGNES BY PATENT; DATED JANUARY 18, 1860, AND AS SHOWN BY MAP ON FILE IN BOOK 1, PAGE 37 OF PATENTS, RECORDS OF SAN DIEGO COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF PARCEL 4 AS SHOWN ON PARCEL MAP 8840 FILED IN BOOK 41, PAGES 54 AND 55, RECORDS OF RIVERSIDE COUNTY, SAID POINT BEING ON THE CENTERLINE OF PAUBA ROAD AND BEING MARKED BY A 1-¼ INCH IRON PIPE TAGGED "L.S. 3160" PER SAID MAP, SAID POINT ALSO BEING A POINT ON A CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 2,000.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 14031'39'' WEST; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 02°01' 20", AN ARC DISTANCE OF 70.59 FEET; TO THE END OF CURVE, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 16032' 59" WEST; THENCE ALONG A RADIAL LINE NORTH 16o32' 59" WEST 44.00 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY OF PAUBA ROAD, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE SOUTH 73°27'01" WEST, 23.37 FEET ALONG SAID RIGHT-OF-WAY; THENCE LEAVING SAID RIGHT-OF-WAY NORTH 16o32' 59" WEST, 18.52 FEET ALONG THE WESTERLY LINE OF THE TEMECULA PUBLIC LIBRARY PARCEL AS DESCRIBED IN THE LEGAL DESCRIPTION FOR TEMECULA PUBLIC LIBRARY; THENCE NORTH 17045'09'' EAST, 66.36 FEET ALONG SAID WESTERLY LINE OF THE TEMECULA PUBLIC LIBRARY PARCEL; THENCE NORTH 11°01'46" WEST, 75.21 FEET ALONG SAID WESTERLY LINE OF THE TEMECULA PUBLIC LIBRARY PARCEL; THENCE NORTH 51049'47'' EAST, 162.16 FEET; THENCE SOUTH 88055'20'' EAST, 136.08 FEET; THENCE SOUTH 64000'57" EAST, 56.13 FEET; THENCE SOUTH 22°21 '01" EAST, 161.46 FEET TO A POINT ON SAID NORTHERLY RIGHT- Page 1 of 2 Janua~/31, 2002 BY: R. Pisa Ck'd BY: B. Fox C:~I\LEGALDES\TEMEFSLE Gwpd OF-WAY OF PAUBA ROAD, SAID POINT BEING ON A CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 2044.00 FEET; A RADIAL LINE THROUGH SAID POINT BEARS NORTH 06o25'24'' WEST; THENCE WESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 10o07'35TM, AN ARC DISTANCE OF 361.25 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING 64,635.71 SQUARE FEET OR 1.48 ACRES, MORE OR LESS. THIS DESCRIPTION IS ALSO BEING SHOWN ON THE ATTACHED "EXHIBIT B" MAP AND THEREBY BEING MADE A PART HEREOF. PREPARED UNDER MY SUPERVISION: REGISTRATION EXPIRES 12/31/03 Page 2 of 2 Janua~/ 31, 2002 BY: R. Pisa Ck'd BY: B. Fox C:\I\LEGALDES\TEMEFSLE G.wpd EXHIBIT "B" EXHIBIT "B" % sc^,E ,. [E, ET / V/ ",~.,o o,,,- ~/ . ~ ,"-- 200 [%'~,.¢' / ~'i . - ~ ~ ;6~ ~ ~ ~ ~ 'roUE Pomm OF BEOmNNINO ~ DATA TABLE ~ ~AR I NG D I ST~ II PAF{CEL MAP 88z~0 ~ N16'32'~'W~.~' // e ,,,.,,.o,., gETAIL / S~: 1'= 200' ~ N16'~'~'W 18.52' II ~ ~ ~ ~,,.o,.~., ~.~,. ~1 ' 49'4~'E 162.16' ~%~ ~.~.~.[ ~.~, KEY MAP -""~ SCAL[ IN FEB P~P~if 1" = 1000' UN~ ~: 1"= 1~0' S~ D~NL '1' ~ ~ PREPARED BY: A oo.~o..~ ..o PouT, c ~.~/.¢ ~z~ 43200 BUSINESS PARK DR. ' ~ .MUNICIPAL CONSULTN~ TEMECUI_A. CA 92590 REaSTRA'~ON ~'~f?~"~, ~ .SURVEYORS/GPS (909) 694-6'tll rr.~'ll~ES .PLANNERS A.P.N. 94-5-050-016 _~,¢~Z~fO~j 151 South Girard Street. Hemet. Co 92544. (909) 652-4454 FAX (909) 766-8942 E-MAIL cozadOivic.net TEMECULA COMMUNITY SERVICES DISTRICT ITEM 1 APPROVAL CITY ATTORNEY FINANCE DIRECTOR ~ CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: Board of Directors FROM: Herman D. Parker, Director of Community Service~__~ DATE: March 26, 2002 SUBJECT: Food and Snack Service Agreement PREPARED BY: Julie Crowe-Pelletier, Recreation Superintendent C~ RECOMMENDATION: That the Board of Directors: Approve a non-exclusive Agreement between the City of Temecula Community Services Department and Eric Thompson and Wendy Sauceda of Barbie's Hot Dogs, Etc., to provide food and snack services at City parks, facilities, and special events. DISCUSSION: The Community Services Department coordinates and implements several city-wide special events, ongoing programs and sport leagues on an annual basis, at which food concessions are provided. These services provide the public an opportunity to have a snack or refreshing soft drink while participating or attending one of our many programs or events. Participants in the City sponsored programs and facilities such as the concerts in the Amphitheater, Halloween Spooktacular, and the Community Recreation Center utilize food concession services on a continual basis. On February 11,2002, staff released a Request for Proposals (RFP) for food vendor services at City events and activities. The RFP was sent to three food vendors based upon previous interest. Two of the vendors are local Temecula based businesses and one in a Lake EIsinore business. The RFP was also noticed in the local newspaper and posted on the City's website. Staff received one proposal from Barbie's Hot Dogs, Etc. The proposed agreement for providing food and snack services is a two (2) year Agreement with an option for a one (1) year renewal with "Barbie's Hot Dogs, Etc. a Temecula based business. Barbie's Hot Dogs, Etc. would provide snacks and refreshments such as hot dogs, chips, popcorn, pretzels and soft drinks, upon request, at City special events and programs at various facilities. Barbie's Hot Dogs, Etc. would be required to pay the City, nineteen percent (19%) of gross revenues generated at City sponsored events and fifteen percent (15%) of gross revenues generated at ongoing or continually scheduled programs such as league play. Barbie's Hot Dogs, Etc. has provided staff with all documents necessary to verify insurance coverage and County Health Department clearances and permits. Barbie's Hot Dogs, Etc. has provided food concession services for the City, in a pleasant, dependable, and professional manner since 1989. They have established a good rapport and relationship with many of our program participants. FISCAL IMPACT: Revenue generated as a result of this Agreement will be deposited into account # 190-183-4992 (Special Events). Anticipated annual revenue is approximately $ 2,000. CITY OF TEMECULA NON-EXCLUSIVE AGREEMENT FOR PROVIDING FOOD AND SNACK SERVICES THIS AGREEMENT, is made and effective as of March 26, 2002 ,between the Temecula Community Services District (TCSD), and Eric Thompson and Wendy Sauceda of Barbie's Hot Dogs, etc., ("Vendor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM. This Agreement shall commence on March 26, 2002 and shall remain and continue in effect until April 1, 2004, with a one (1) year renewal at the sole option of the CID', unless sooner terminated pursuant to the provisions of this Agreement. 2. SERV1CES. Vendor shall prepare and sell various food and snack items at those events, which the Director of Community Services ("Director") shall designate. Vendor understands and acknowledges that this is not an exclusive contract for such sales and that the Director of Community Services may contract with other persons for the sale of such items at specified events. The Director shall provide the Vendor with not less that two (2) business days notice of the evenl for which services are required. Vendor shall submit to the Director menu items and the prices for such items and the Director shall approve the items and prices. Vendor shall not change the menu or the prices without the written consent of the Director. 3. PERFORMANCE. Vendor shall at all times faithfully, competently and to the best of their ability, experience, and talent, perform all tasks described herein. Vendor shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Vendor hereunder in meeting obligations under this Agreement. 4. PAYMENT. In consideration of the TCSD granting to Vendor this non- exclusive opportunity to sell the items as provided in this Agreement, Vendor shall pay to the TCSD the following percenlages of Gross Revenues from the items sold at the designated events. a. Nineteen percent (19%) of the Gross Revenues from the items sold al special events, as the same are designated by the Director, except for youth sports; b. Fifteen percent (15%) of the Gross Revenues from the items sold at events which are continually scheduled, except for youth sports; and R:~ZIGLERGOCAGREEMN\SNACK.AGR 2002 Io 2004 Barbles Dogs.doe- I - c. Ten percent (10%) of the Gross Revenues from the items sold at youth sports events shall be paid to the City and fifteen percent (15%) of the Gross Revenues from the items sold at youth sports events shall be given to youth sports in the community as approved in writing by the Director. The amounts described in subparagraph a. of this Paragraph shall be paid within twenty four (24) hours after the beginning of the special event, and payments for subparagraphs b. and c. shall be paid not laler than the thirtieth (30th) day of each month in which an event takes place. Vendor shall keep accurate-records of gross sales in such form and content-as.approved by the Director. The City reserves the right to review the vendors financial reports related to funds collected at City activities and events. For the purposes of this section "revenues" shall mean the total amouut of money vendor collects from the retail sales of the items vendor sells at any event authorized by or through this Agreement, or the equivalent monetary amount in any event vendor exchanges the subject items for other cash consideration. 5. INSURANCE REQUIREMENTS. Vendor shall procure and maintain for the duration of the contFact 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 Vendor, 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. Consultant shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, persoual 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 injuD, or disease. R:~ZIGLERGxXAGREEMN\SNACK.AGR 2002 to 2004 Barbies Dogs.doe- 2 - 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, eithec 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 insured as respects: Liability arising out of activities performed by or on behalf of the Vendor; products and completed operations of the Vendor; premises owned, occupied or used by the Vendor; or automobiles owned, leased, hired or borrowed by the Vendor. 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 Vendor'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 Vendor'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 Vendor'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, cancelled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of I usurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VI1, unless otherwise acceptable to the City. f. Verification of Coverage. Vendor shall furnish the City with original endorsements effecting covecage 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 R:~ZIGLERG~XAGREEMN\S1N^CK. AGR 20021o 2004 Barbies Dogs.do~- 3 - City before work commences. As an alternative to the City's forms, the Vendor's insurer may provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. 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 Vendor at least ten (10) days' prior written notice. Upon receipt of said notice, Vendor shall immediately cease all work under this Agreement, unless the notice provides otherwise. b. In the event this Agreement is terminated pursuant to this Section, Vendor shall pay to City the amounts due pursuant to Paragraph 4. 7. INDEMNIFICATION. Vendor agrees to defend, indemnify, protect and hold harmless the City, ils 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, or claims for money due, arising out of Vendor'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. This section is in addition to, and cumulative with the indemnity set forth in Section 9 hereunder. 8. INDEPENDENT CONTRACTOR. c. Vendoc 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 Vendor shall at all times be under Vendor's exclusive direction and control. Neither City nor any of its officers, e~nployees or agents shall have control over the conduct of Vendor or any of Vendor's officers, employees or agents, except as set forth in this Agreement. Vendor shall not at any time or in atD, manner represent that it or any of its officers, employees or agents are in any manner ofricers, employees or agents of the City. Vendor shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. d. No employee benefits shall be available to Vendor in connection with the performance of this Agreement. Except for the fees paid to Vendor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Vendor for performing services hercunder for City. C!ty shall not be liable for compensation or indemnification to Veudor for iujury or sickness arising out of performing services hereunder. 9. LEGAL RESPONSIBILITIES. Vendor shall keep itself informed of Federal, State and local laws and regulafions which in any manner affect those employed by it or in any way affect the perlbrmance of its service pursuant to this Agreement, including, R:\ZIGLERGSXAGnEEMN\SNACK. AGR 2002 lo 2004 Barbies Dogs.doe- 4 - without limitation, all applicable health and food preparation laws and regulations and act in strict conformance with the same at all times. Vendor 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 Vendor to comply with this section and vendor shall be solely responsible for all harm, injury cost and the like arising under any breach of this provision, together with the indemnity established in Section 7 above. 10. NOTICES. An)' notices which either parD, ma), desire to give to the other parD, under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a repntable 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 part)' as set forth below or at any other address as that party may later designate by Notice: To City: (Location) To City: (Courier or Mail) City of Temecula City of Temecula 43200 Business Park Drive P.O. Box 9033 Temecula, California 92590 Temecula, CA 92589-9033 Attention: Director of Community Attention: Director of Community Services Services To Vendor: Barbie's Hot Dogs, Etc. P.O. Box 891453 Temeeula, CA 92592 11. ASSIGNMENT. Vendor shall not assign the performance of this Agreement, nor any part thereof, nor an), monies due hereunder, without prior written consent of the CID,. 12. LICENSES. At all times during the term of this Agreement, Vendor shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement. 13. ENTIRE AGREEMENT. This Agreement contains the entire understanding between tile parties relating to the obligations of the parties described in this Agreement. All prior or cootemporaneous agreements, understandings, representations and statements, oral or writlen, 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. 1N WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the da)' and year first above writlen. R:XZIGLERG~AGREEMN\SNACK.AGR 2002 to 2004 Barbies Dogs.doe- 5 - TEMECULA COMMUNITY BARBIE'S HOT DOGS, ETC. SERVICES D1STRICT (TCSD) BY: Jeff Stone, Presidenl Eric Thompson - Barbie's Hot Dogs, Etc. Attest: Susan Jones Wendy Sauceda - Barbie's Hot Dogs, Etc. City Clerk Approved As to Form: City Attorney R:~ZIGLERGXXAGREEMN\SNACK.AGR 2002 1o 2004 Barbies Dogs.doe- ITEM 2 APPROVAL CITY ATTORNEY FINANCE DIRECTO~ CITY MANAGER ,~) CITY OF TEMECULA AGENDA REPORT TO: Board of Directors FROM: Herman D. Parker, Director of Community Services(/",~ DATE: March 26, 2002 SUBJECT: Rancho California Sports Park Americans with Disabilities (ADA) Capital Improvement Project PREPARED BY: ~' Phyllis L. Ruse, Deputy Director of Community Services RECOMMENDATION: That the Board of Directors approve a transfer of the remaining Community Development Block Grant (CDBG) funds in the School Site ADA Project to the Rancho California Sports Park ADA Access Project. BACKGROUND: The City Council approved CDBG funding for design only of the School Site ADA Project improvements in the current fiscal year. The future year funds that were anticipated for construction of the improvements have been reprogrammed to the Old Town gymnasium project. Therefore, construction of the ADA improvements at various school sites will be delayed until additional funds can be identified. The Council also approved CDBG funding for design and construction of the Rancho California Sports Park ADA Access improvements in the current fiscal year. After further investigation, staff believes the final improvements will cost more that the $50,000 currently budgeted. Upon Council's approval, staff will request that the Riverside County Economic Development Agency amend our prior CDBG applications to reflect the reallocation of grant funds. The reallocation will provide approximately $29,500 additional funding for the Rancho California Sports Park ADA Project and will provide access to remote playing fields. FISCAL IMPACT: Approximately $29,500 additional CDBG funding will be transferred and available for ADA access improvements at Rancho California Sports Park in the current year, making the total ADA funding for this project approximately $79,500. The Temecula Middle School ADA project will be considered in future years in the Capital Improvement Program. R:~RUSEP~AGENDAS\CDBG funds transfer to RCSP ADA project 2002.doc ITEM 3 APPROVAL CITY ATTORNEY ~P~ FINANCE DIRECTOR__~2-~ CITY MANAGER z:~,j CITY OF TEMECULA AGENDA REPORT TO: Board of Directors FROM: Herman D. Parker, Director of Community Services~/ DATE: March 26, 2002 SUBJECT: Vail Ranch Park Site ~C" Master Plan PREPARED BY: ~h,¥ Phyllis L. Ruse, Deputy Director of Community Services RECOMMENDATION: That the Board of Directors approve the Vail Ranch Park Site "C" Master Plan. BACKGROUND: On July 1, 2001, the successful annexation of the Vail Ranch community to the City of Temecula was accomplished. Vail Ranch has three improved parks and one unimproved park site that is being used as a temporary interim fire station site. Upon annexation, these parks became the responsibility of the Temecula Community Services District (TCSD). Park Site ~C" is located on Regina Drive, just west of and adjacent to Pauba Elementary School. The park is 2.285 acres in size. Currently, the site is improved with turf, some landscaping, a drinking fountain, trash receptacle and bench. With annexation, the TCSD assessed Park Site "C" and included improvements for the park in the Five Year Capital Improvement Program (ClP) for the site. The improvement project is funded through the CIP this fiscal year. TCSD entered into a design agreement with RHA Landscape Architects - Planners, Inc. (RHA) to prepare a conceptual plan and construction documents for park improvements at Park Site "C". The proposed design elements include age-appropriate tot lots, two picnic shelters with picnic tables, park seating, drinking fountain, and additional trees. Staff befieves that these improvements will be inviting and add to the community's enjoyment of the park, providing amenities that are equivalent to similar City parks. Park signage will be added at a later date. It is anticipated that the TCSD will solicit input and recommendations from the Vail Ranch residents for names for all three improved parks in their area. Those recommendations will be brought forward to the Community Services Commission and the City Council and appropriate signage will be installed at the parks when the names have been approved. R:\RUSEP~AGENDAS\Vail Ranch Park Site C -tcsd.doc FISCAL IMPACT: The Engineer's cost estimate for this project is $249,921. The project is funded with Development Impact Fees and is included in the Capital Improvement Program in fund 210-190-182-5804. R:~RUSEP~AGENDAS\Vait Ranch Park Site C - tcsd.doc ITEM 4 APPROVAL CITY ATTORNEY FINANCE DIRECTOR~ CITYMANAGER CITY OF TEMECULA AGENDA REPORT TO: Board of Directors FROM: Herman D. Parker, Director of Community Service~ DATE: March 26, 2002 SUBJECT: Children's Museum Conceptual Master Plan RECOMMENDATION: That the Board of Directors: 1 ) Approve the conceptual Master Plan in its substantial form for the Imagination Workshop, Temecula Children's Museum. 2) Approve an appropriation of $781,000 from the General Fund Reserves to the Children's Museum project account number 210-190-165-5804. 3) Approve Amendment No. 2 to the agreement with Sparks Exhibits and Environments for exhibit construction in the amount of $630,000 and a 10% contingency in the amount of $63,000. 4) Authorize the formal public bid for tenant improvements for the Children's Museum. BACKGROUND: On December 12, 2000, the Board of Directors awarded a contract to Sparks Exhibits and Environments to design the conceptual master plan for the interior exhibits and environments, tenant improvements and exterior building improvements for the Imagination Workshop, Temecula Children's Museum. A design committee consisting of Mayor Jeff Comerchero, Mayor Pro Tern Ron Robeds, Commissioner Jack Henz, educational staff, and TCSD staff, were assembled to work with the consultant to design the facility. Through a series of community workshops, and several sub-committee meetings, the committee hascreated, viewed and approved the conceptual master plan for the Temecula Children's Museum. It is now presented for your review and approval. Located in Old Town Temecula on Main Street in the Old Trading Post building, the 7,500 square foot Children's Museum is proposed to be the imaginative, turn-of-the-century, home of Dr. Phineus P. Pennypickle, Phd. Dr. Pennypickle is a creative, eccentric and illusive inventor that is rumored to have constructed a time machine. The Professor likes to come-up with new inventions all the time. He is very secretive, somewhat paranoid and he never finishes anything he begins. It is alleged that he has been seen wearing different disguises and some say he seems to be caught between two worlds, the modern world and the late 1800's. The Imagination Workshop is his home where he creates, invents and explores. The facility R:\RUSEP~AG~NDAS\Children's Museum Amendment No 2.doc features several rooms, which included similar areas that you would find in your own home: a dining area where the Professor explores power and electricity, a library where he tinkers with inventions and travel, his bedroom houses a perception and illusion machine, and in his kitchen he experiments with chemistry and physics. All of these areas include interactive hands-on areas for youngsters to explore. Hallways, tunnels and illusionary entrances and exits connect these areas. The facility also offers a snack area; retail gift shop and also a dining room that may be used for birthday parties and other youth activities. The facility creates an environment that is enriching, engaging and captures your attention, with a great deal of color and imagery. It will be full of interactives that promise to capture and hold the attention ofour youth. The additional funding is needed to cover the cost of bringing this imaginative and enriched environment to fruition. The scope of the contract with Sparks Exhibits and Environments remains the same, however environments in each area of the facility are much more enhanced and endched with wall themes, lighting and sound effects. This additional funding also allows us to complete the entire facility as opposed to 2/3 of the facility, which was initially budgeted. The tenant improvement portion of this project has also increased. The facility is in need of roof replacement, concrete walkway replacement, sidewalk replacement and also replacement ofwooden siding and railings and ADA improvements. These funds are requested from General Fund Reserves and are proposed to be reimbursed to the General Fund Reserves once the RDA tax allocation bond financing is complete. John Kasparowicz of JK Group and Steve Anderson of Sparks Exhibits and Environments, are here tonight to present the conceptual master plan Dr the Imagination Workshop. FISCAL IMPACT: Currently Sparks Exhibits and Environments has a contract in the amount of $870,000 for exhibit design, fabrication and installation. A 10% contingency for this contract has also been set aside. The additional appropriation of $781,000 funds the proposed Amendment No. 2 for $630,000 and a 10% contingency of $63,000, as well as, $88,000 for tenant improvements. These funds are requested to be advanced from General Fund Reserves and are proposed to be reimbursed to General Fund Reserves once the RDA tax allocation bond financing is complete. R:\RUSEP~AGENDAS\Children's Museum Amendment No 2.doc AMENDMENT NO. 2 CONTRACT ORDER NO. 27999 Children's Museum Improvement Proiect March 26, 2002 The Agreement dated December 12, 2000 between the Temecula Community Services District and Sparks Exhibits and Environments, (hereinafter referred to as "Agreement") is hereby amended as follows: Section 1 Scope of Work, Exhibit A, is hereby amended to include additional interior and exterior treatments of the project to enhance the environments within the facility and to stay in keeping with the overall desired thematic storyline. A new Exhibit A is attached hereto and incorporated herein bythis reference in place of the original Exhibit A. Section 2 Compensation for the additional services referenced in Section 1 above is a not to exceed amount of $630,000 above the previously agreed upon compensation all to be paid in accordance with the Agreement, as amended. The parties agree that the total Agreement compensation, including the increase authorized by this Amendment No. 2, in an amount not to exceed $1,500,000, and a 10% contingency of $150,000. Section 3 All other terms and conditions of the Agreement shall remain the same. The parties hereto have executed this Amendment on the date and ~ear above written, CONSULANT CITY OF TEMECULA By:. Jeffrey E. Stone, President Name: Title: Attest: By: Susan W. Jones, CMC, City Clerk Name: ,,~ Title: Approved as to Form: (Signatures of two corporate officers required for Corporations) Peter M. Thorsen, City Attorney R:\RUSEP\CONTRACT~children's museum - amd 2- sparks.doc Conceptual Estimate 12-6-2001 i E~hJbi~ Interior Development Tota~ Per Area Running Total .......... Wall T..h...e~..ing ......................................................... 1..1....0..0..0 ............................................... .w?j.,.s.~!~ ......................................................................... ~. o..,..o..o..o Base Units Basic No Theme 15,000 .................................. C. ~!!.n.g...G..i..z .m.o.. (?..a~.?.!..3....e~.. ................................. 6,000 Retail display/compon~ts 6 500 ............... Fio~..n.'ng .................................... ,5....~,. ,6~., Sound 750 .................................... ~.~. w~.LL,.E.!~!?~ ........................................................... §.8.o.9. ........................................... ~.~r.~.~.g.,.h~.q.g. ......................................................................... ~.4..2.0.9. ............................................ .s..h~.~g..h...~.g. ........................................................................... ,.2.,.5.0.0. ................................................. ~!.o..~ .............................................................................. b.O.O.O. ............................................. R~!!,].~.L~..M.. ........................................................................... .f.:O.~..O. Install 4,536 77,72i~ 341,194 Wall Th ' 650C Snack Bar Cabinets 15,00C Tables and Chaim 3,80l~ Cash Registers and POS 10,00(~ Stained Glass 15,00(] :::i:::;::! i!:! !:~: ~:~';~5~'~i~ ~ ~: ii?:: ............................... '~':*~'~ .Z?..!,..:L..:L!.!..~:~~..!.ii.:~..!...!..!!i!!.. i:., ::::::::::::::::::::::::::::::::::::::::: .................................................. .Fj.~ n..g. ................................................. ,.......,..,....................,.,... 4,848 ..... Smmd 1,000 Base Wall / Electrical 5 296 .......................................... ~?.~...u..~u.~.g. ........................................................................ .7. .,. ~ .7. .~ ................................................ .~.~.h..~ .............................................................................. ,2.,..O..O..O ............................................. .D.~!!.n..g..L.P...M.. .......................................................................... ,3.,..7..2..O Ins~l 4,536 88,172 429,366 Amendment #2 March 26, 2002 Conceptual Estimate 12-6-2001 Interior Development rota~ Per Area Running Total Wall Th~'ning ................................................... .P.~ .................................................................................. ,.5.,; ,o.o.~ Table with central control 14,863 Special Chairs and Rug 9,50£ Floodng 2,508 Show Contrc4 23,189 Base Wall / Electrical 35,934 Facility Lighting 1,200 Show lighting 5,000 ................................................. ~,r. ,~..h.!5~ ................................................ .......,.....................,...,......, 4,000 ............................................ ~!!n..g.../...P..M, ............................................ 11,045 Install 7,560 161,299 590,665 ............................ T.,u..n..n.~.,.m.,. ,~..~j,n. ?.~.d.,.? .u.p.~ ............................ 10.000 ................................... .N.~n. g..~,d.,,~.n.m~,~. ................................................................. ?.,.7.0.0. .................... .W..~!?.!?~.r?...F,.r.~.,.w.!~..d.~..~,d...~' .................................................. .8..,.0.0.0. Tunnal finishes 7,500 ................................................... r.F,~m...n..~' ............................................................ ................................................... .S.~n.d. ................................................... 1,000 Base Wall / Elestdcal 3,404 ........................................... ~e,?r.~.Bg...h,?~g, ........................................... Y~'6i ............................................. ,S.,.h.~.B,g.h.~,~ ............................................. ' ............................. ~';'~'6'! ................................................. ?.~.!c.~ ................................................. ................. ......,.... ............... 250 ............................................. .D.~]!~g../..?...M,. ............................................................................. .1..,.3..!.{ Install 1,13~ 48,91 ( 639,580 Amendment #2 March 26, 2002 Conceptual Estimate 12-6-2001 Interior Development Tot.~ Per Area Running Total Well Theming 8,000 ..................................................... .P...r~?. ?. ................................................... .......,..., .............. ,............,.., 4,375 Flying Helmet and Wind Tunnel ............................................ ~!~J,~.M.~ .......................................... 9,500 Flooring 2,508 ...................................... ,s.~...c. mt~/.. ,s.~?a' ..................................... ~ o, 583 Base Well / Electdcel 8,700 ........................................... ~.~r.~ .~.~..~.,,~ .......................................................................... .~..:o.9.0, ............................................ ..s..~.~.?~ ........................................................................... ,.2.,. ,o.~?, ................................................. ~r.?.h.!5.?. ................................................. ........ ,.................,.............,2,00~ ............................................. .D.~!!n.~..L.P..~ ........................................................................... ..3.,,..9.3..~ Install 6~04~ 100,14~c 739,729 ............................................ .w...~!...c.~[.,.~.t~ ......................................................................... 1..8....0..~. ................................... .W. ~.!..T..h...~.!?.g.. ,~..,d...,P., .aq! .ry. .................................. ........,.......,,.....,.............5' 71 .................................................... ~.,~.~ ................................................................................. !.0.;.,0...0...0. .............................................. ,s..~?. F?~.d.g.~ ............................................................................ .2.;..0...0..~ .................................................. .F.~m,;n.~' ................................................................................ .3.;.,9..§.~ ...................................... .s...h., .o~, ..,C.., .~..t.~ ../..S..~. ,n..d. ..................................... ,.....................,...,.............. 30,463 Base Wall / El~ctrioel 13,995 ............................................ .F.,a.c.!Jj~.U.g.h.?..ng. ........................................................................... 1..,..0...0..0. 4.000 135,580 875.309 Amendment #2 March 26, 2002 Conceptual Estimate 12-6-2001 Interior Development Total Per Area Running Total .............................................. ~!,T..h.~!.?,.g. ............................................ 8,ooc , Props ..... 2,000 ............................................. ,.S..h. ~. ,c. ,.oq.!.r~. ............................................ 13,603 Base Wall / Electrical 6,809 6,000 ............................................ F..,,.c.!!!~.~,s.~..n.g. .......................................................................... .1..,..0,.0..0, ............................................ .S..h.~.~g..h,?.g. ........................................................................... ,¥..5..O..O, ................................................. ~.~.h.!~,~ .............................................................................. .2..,..q.0..0, Install 5,292 49,114 924,423 ................................................. E.r~J?.~ ......................................................................... .9..,°.9.°,, .................................. ,w..,~LW,.~LP.~.Aj!o..~,~,t' .................................. 2 ooo .................................. ,N.o..~,,W,.~LP.~.A.[Lo~.t' .................................. ....... ,.,,,,,.,.. ............ ,..,.,,,,,,..,2'000 ................................... ..E.~L,W.~!.,.P.,~..A.?.~.t' ............................................................. .2..S..0..¢. South,..W. all Prop AIIotm ..~..t 1,50¢ .................................................. ~...oq..,:.,..s.. ................................................................................. !:.5.o..q ....................................... w..~!~.L ~.~,~,.~.?..s' ..................................................................... .a.:.,o.o. q ................................ .T..~.~%.C.?.&h..~.,,P/.~?~ ............................... ,..,..... ,.....,.,.. .......... 9....,.,...00C Chandelier and Lamp 5,000 ............................................... .s.~.,~.?. .............................................................................. s.:,o...o..o. Show Cont~ 19,765 Base Wall / Ele~bical 10,591 Facility UghtJng 1,000 ................................................................................................................................................Show Ughfing , , '~'~ ................................................. E~.~.h.!~. .............................................................................. ,3..,.o..o,.o ............................................. .D?.~!!n..g..,/..,P..M.. ............................................ .... ,..,.............................,.....4' 140 Install 7,560 1,041,979 ........................................... ,F.?.fj!!~.~.~..h.?..n..g. ............................................ 500 ............................................ .s.,~.~.~.~,.qs. ............................................................................. .~.,:~o.o. ................................................. E~.~.! .~. ............................................................................... ,.a.:o.o.q ............................................. .D.?.~!!?.g../..P.~ ............................................. 4,000 Install 4,586 47,566 1,089,545 ~.~..~.1.1.1.:2~:~.~..~.~..!~.:.~'2~.~.~:`~.:.:.::.:.:.....~u:~:`7";....:.:~:.:...:~.~.~.`:%~..:s~m~m`~:..~.:..~.~.:.1.:.:.:.2:.~:.~.~.~:.~`.:.::.:.:~.~`.~.~:~ [ WallTheming ]]]]]]]]]]]];]]]]]]]]]]]]]]]]]]].~[,]~]~] Amendment #2 March 26, 2002 Conceptual Estimate 12-6-2001 Interior Development Per Area Running Total Total Props 12,000 il i~~, :8hef(e ~e' ~/ill3 ~ ~i~i~:. ~:. ~ :.~. ::~:,~ 000 :. ~a ii~[ :: :. :: [~ [ 20,000 :.::~ Pa~:~ :. 7,000 ............................................. .~.~}~ .............................................. 25,681 B~e W~I / ~td~ 12,014 ............................................ [e~}~.~ ............................................................................ ~..~g.~ Sh~ Ughfing 3,000 ................................................. ~}5.~ ................................................. 3,000 ............................................. ~}~<.~ ............................................. ,.,...,.. ................. ,...,,.,,........4,700 Ins~l 7,56~ 110,45~ 1,200,000 Amendment #2 March 26, 2002 Conceptual Estimate 12-6-2001 i i E~hibit~ i i Interior Development Total Per Area Running Total Shower (part of exhibit) 0 Show Control 5,975 Install 8,316 62,551 1,262,551 Amendment #2 March 26, 2002 Conceptual Estimate 12-6-2001 il :.j E~hibi~S i i Interior Development Total Per Area Running Total Wail ThemJng 5 00(~ ..................................................... ....~ ............................................................................ !.2....o...o..~ ................................. ~.,9.~,~..~ ....................................................................... S~ge Plaffo~ 3,000 .............................................. ~.~. ............................................ 28,351 Base W~I / El~td~ 13,995 Faci~i~ Ugh~ng 1,000 ............................................ ~.~ .......................................................................... ................................................. ~.[~}~5 ................................................. 3,500 I~1 13,230 1~,641 1,397,192 W~I Th~Jng 500C P[~s 5,00~ Sh~ C~tr~ 12,586 B~ W~I / ~td~ 6,80g ............................................ ~.q~.~ ........................................................................... ................................................. P.[~ .............................................................................. ............................................. ~.L~,~ .......................................................................... ~:.~].g Ina~l 5,292 ~,597 1,460,789 W~I Th~ing 2,500 S~nd 750 Ba~ W~I / EI~ 9,456 ........................................... ~J~.R~,~9~ ............................................................................ !..~ ........................................... ~,~.~.~,~ ............................................................................ ................................................ ~. ................................................................................ .............................................. ~.~.~,~ ............................................................................ ,~,~?.~. Ine~l 3,780 ~,211 1,495,000 Static-to include sensors that read inside 5,000 1,500,000 Grand To~l 1,500,000 Amendment #2 March 26, 2002 TCSD DEPARTMENTAL REPORT APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER ~/~ CITY OF TEMECULA AGENDA REPORT TO: Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: March 26, 2002 SUBJECT: Departmental Report PREPARED BY: Gall L. Zigler, Administrative Secretary Staff released a Request for Qualifications (RFQ) for the design of an aquatic facility to be constructed at Chaparral High School. The Board of Directors approved a Scope of Services Agreement on December 7, 1999, with the number one ranked firm, RJM Design Group. The architect and project design committee has completed the schematic design of the project. The Board of Directors approved the Master Plan on June 27, 2000, and awarded a contract to RJM Design Group on July 11,2000, for the Phase II of the Design Contract. The City Council awarded a contract to California Commercial Pools on July 10, 2001 and construction began on August 13, 2001. Both pools have been shotcreted and the tile has been installed. The block work for the building is complete, 60% of the deck has been poured, all equipment in the mechanical room has been installed, palm trees have been planted and the fencing is currently being constructed. Competition lighting has been installed. The project is on schedule and staff anticipates construction will be completed by early spring. The Master Plan for the Temecula Public Library was adopted at the September 26, 2000 City Council Meeting. Staff has negotiated a contract with LPA for the final construction documents and specifications for the Temecula Public Library. Staff is resolving the final issue with the construction documents and they will be submitted for final plan check. Staff released an RFQ for grant writing services to apply for the California State Library's Bond Act 2000. A consultant was selected and focus group interviews and a community workshop were held on January 28 - 29, 2002. Staff released an RFQ for the children's museum interior space planning, exhibit design, fabrication, construction and installation. Interviews were held of the four top ranked firms on October 17, 2000. Staff began negotiations with the top ranked firm, Sparks Exhibits and Environments. The Agreement and Scope of Services was approved by the City Council on December 12, 2000. The committee has been meeting and has proposed naming the facility "Imagination Workshop, The Temecula Children's Museum". A staff report went fonNard to the Community Services Commission on May 14, 2001, and they unanimously approved a recommendation to the City Council to name the facility. The Design Committee has been working on a theme an interior design concept. A committee meeting was held on October 11,2001. The Community Services Commission reviewed R:~Z IGL E RGLXDEPTRPTx0302.d oe March 20, 2002 the design concept for the project and recommended staff take the design concept forward to the City Council. The Board of Directors will be reviewing the Master Plan at the March 26, 2002 City Council meeting. The general tenant improvements will be going out to shortly. We met with RHA Landscape Architects regarding 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. 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 parks and recreation facilities, as well as all other City owned public buildings and facilities. In addition, the Maintenance Division assists in all aspects of Citywide special events. The Recreation Division is in the preliminary planning stages for upcoming holiday events including the Spring Egg Hunt and the Annual 4th of July parade and fireworks extravaganza. The Recreation Division continues to plan, program and implement a variety of classes and activities for the community. R:~Z IGLERGkXDE PTRPT~0302.d oc March 20, 2002 REDEVELOPMENT AGENCY ITEM 1 APPR~y,~z~ CITY ATTORNEY DIR.OF FINANCE CITY MANAGER CITY OF TEMECULA and REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA and TEMECULA PUBLIC FINANCING AUTHORITY AGENDA REPORT TO: City Council/Redevelopment Agency Governing Board/Public Financing Authority Governing Board FROM: City Manager/Executive Director/Executive Director DATE: March 26, 2002 SUBJECT: Issuance of Tax Allocation Bonds by the Redevelopment Agency of the City of Temecula for the Temecula Redevelopment Project No. 1 RECOMMENDATION: 1. That the City Council adopt a resolution entitled: RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA OF TAX ALLOCATION BONDS 2. That the Redevelopment Agency adopt a resolution entitled: RESOLUTION NO. RDA 02- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AUTHORIZING THE ISSUANCE AND SALE OF TAX ALLOCATION BONDS IN CONNECTION WITH TEMECULA REDEVELOPMENT PROJECT NO. 1, AND APPROVING RELATED DOCUMENTS AND ACTIONS 3. That the Authority adopt a resolution entitled: RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF TNE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF TAX ALLOCATION BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TFMECULA AND APPROVING OTHER MATTERS RELATED THERETO BACKGROUND: In 1993, the Redevelopment Agency of the City of Temecula (the "Agency") issued $17,355,000 principal amount of its Temecula Redevelopment Project No. 1 (the "Redevelopment Project") 1993 Tax Allocation Bonds, Series A (the "1993 Bonds"). The 1993 Bonds are payable from tax increment revenues (the "Tax Revenues") from the Redevelopment Project other than those tax increment revenues required under the Redevelopment Law to be used for housing purposes. The proceeds of the 1993 Bonds were used to finance various redevelopment projects of the Agency, the funding of the Winchester Road Interchange, streetscape improvements in the Old Town area, Sixth Street parking, the Mary Phillips Senior Center, the Western Bypass, Sam Hicks Monument park and various other Agency projects. In January of this year the Agency entered into an agreement with the County of Riverside (the "County"), and the County's Redevelopment Agency in order to resolve various disputes with the County regarding the use and administration of the Tax Revenues. That agreement requires that the Agency pay the County $6,000,000 from the proceeds of tax allocation bonds of the Agency at the time any such bonds are issued, but in any event by January of next year. The Agency has certain other additional obligations to the County specified in the agreement. Due to the current Iow interest rates in the tax-exempt bond market, the Agency can refinance the 1993 Bonds at a lower interest rate, thereby realizing substantial savings in interest costs. In addition, due to growth in property values in the Redevelopment Project area, the Agency has sufficient Tax Revenues to issue additional bonds to finance the $6,000,000 payment to the County, as well as raise approximately $7,500,000 in additional proceeds for other purposes, currently expected to consist of the repayment of a portion of the amounts owed by the Redevelopment Project to the City's general fund, as well as the provision of funding for the Children's Museum and the Community Theatre project. The approximate total principal amount of bonds that the Agency can issue at this time (the "Bonds"), and maintain sufficient cash flow for its operational needs, is approximately $27,350,000. The proposed Bond issue will be payable solely from a pledge of the Tax Revenues arising from the Redevetopment Project. Tax increment revenues required by the Redevelopment Law to be used for housing purposes would not be pledged to or used for the repayment of the Bonds. No City general funds or other moneys will in any way be pledged or obligated towards the payment of the Bonds. The Agency is proposing to issue Bonds in a principal amount such that will maintain a debt service coverage ratio (annual available Tax Revenues divided by annual Bond debt service) of at least 130%, thereby assuring that sufficient Tax Revenues will be available after the payment of Bond debt service to pay annual administrative costs of the Agency. Also, the projected debt service coverage level is expected to enable the Agency to obtain a rating on the Bonds from a national rating agency and/or bond insurance, thereby lowering the interest costs of the new Bond issue. While current interest rates indicate a total bond issue of approximately -2- $27,350,000, the Agency is seeking a bond authorization of up to $35,000,000 in the event that interest rates decrease prior to the sale of the Bonds thereby allowing for more Bond principal to be supported by the same level of Tax Revenues. In the event that interest rates rise prior to the sale of the Bonds, less principal may be sold than currently projected. The term of the bonds is expected to be set at 30 to 34 years. In order to issue the Bonds, the Redevelopment Law requires that the City Council approve the issuance of the Bonds by the Agency. In addition, in order for the Agency to sell the Bonds on a negotiated basis with Stone & Youngberg LLC, the bond underwriter that has been working with the Agency on the Bond issue (the "Underwriter"), relevant State law requires that the Temecula Public Financing Authority buy the Bonds from the Agency for resale to the Underwriter. The purchase price from the Agency to be paid by the Public Financing Authority wil) be the same as the sale price of the Bonds by the Public Financing Authority to the Underwriter, so no Public Financing Authority funds are involved in the transaction. The proposed resolution of the Public Financing Authority approves the purchase and sale by it of the Bonds and makes related findings required by applicable law. The Agency resolution being presented for approval authorizes the issuance of the Bonds and approves the related financing documents including a draft of an "Official Statement" that describes the terms of the Bonds. These documents will be finalized when the exact terms of the Bonds are determined at the time the Bonds are sold to investors, expected to occur in late April. The date for the closing of the Bond issue, and the time when Bond proceeds are expected to be available, is currently expected to be May 8, 2002. The proposed Agency resolution also approves the consultants working with Agency Staff on the Bond issue and authorizes the Executive Director to enter into contracts with them so long as all of their fees and expenses are payable solely from the proceeds of the Bonds. SPECIFIC ACTIONS: The action requested of the City Council is to adopt a resolution approving the issuance of the Bonds by the Redevelopment Agency. The action requested of the Agency is to adopt a resolution authorizing the issuance of the Bonds and approving the related financing documents and consultants. The action requested of the Public Financing Authority is to adopt a resolution approving the purchase of the Bonds from the Agency and the immediate resale of the Bonds to the Underwriter. FISCAL IMPACT: The Bonds will have no financial impact on the City or the Public Financing Authority as all payments of principa~ and interest on the Bonds will be paid solely from the Tax Revenues of the Agency. The Agency will be obligated to use Tax Revenues from the Redevelopment Project each year to pay the debt service on the Bonds, and to pay the annual costs of administering the Bond program. Attachments: Resolutions (3) Preliminary Official Statement Indenture of Trust Escrow Deposit and Trust Agreement Continuing Disclosure Certificate Bond Purchase Agreement Fiscal Consultants Report Consultant Agreements -3- RESOLUTIONS RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA OF TAX ALLOCATION BONDS WHEREAS, the Redevelopment Agency of the City of Temecula (the "Agency") has determined at this time to issue its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds (the "Bonds") to provide funds to refinance the Agency's outstanding Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. I 1993 Tax Allocation Bonds (the "Prior Bonds"), to satisfy certain obligations of the Agency to the County of Riverside (the "County") arising from an amended and restated agreement among the County, the Redevelopment Agency of the County of Riverside, the City, and the Agency (the "Agreement"), and to finance other redevelopment activities of the Agency within or of benefit to the Agency's Temecula Redevelopment Project No. 1; and WHEREAS, in accordance with the requirements of Section 33640 of the California Health and Safety Code, the City Council wishes at this time to approve the issuance and sale of the Bonds by the Agency. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Temecula as follows: Section 1. Approval of Issuance and Sale of Bonds. The issuance and sale of the Bonds by the Agency in the aggregate principal amount of not to exceed $35,000,000, and the use of the proceeds of the Bonds to defease the Prior Bonds, to satisfy certain obligations of the Agency to the County under the Agreement, and to finance other redevelopment activities of the Agency within or of benefit to the Agency's Temecula Redevelopment Project No. 1, be and is hereby approved. Section 2. Effective Date. The City Clerk shall certify to the passage and adoption of this Resolution, which shall take effec~ immediately upon its adoption. R:/Resos 2002/Resos 02-__ 1 PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula, at a regular meeting held on the 26th day of March, 2002. Ron Roberts, 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, HEREBY DO CERTIFY that the foregoing Resolution No. 02-__ was duly adopted at a regular meeting of the City Council of the City of Temecula on the 26th day of March, 2002, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk R:/Resos 2002/Resos 02-__ 2 RESOLUTION NO. RD~. 02- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AUTHORIZING THE ISSUANCE AND SALE OF TAX ALLOCATION BONDS IN CONNECTION WITH TEMECULA REDEVELOPMENT PROJECT NO. 1, AND APPROVING RELATED DOCUMENTS AND ACTIONS WHEREAS, in connection with.the Redevelopment Agency of the City of Temecula's activities related to its Temecula Redevelopment Project No. 1 (the "Redevelopment Project"), and pursuant to the provisions of the Community Redevelopment Law of the State of California (the "Redevelopment Law"), the Redevelopment Agency of the City of Temecula (the "Agency") has issued its Temecula Redevelopment Project No. 1 1993 Tax Allocation Bonds, Series A in the initial aggregate principal amount of $17,355,000 (the "1993 Bonds"); and WHEREAS, the Agency has entered into an agreement, dated January 22, 2002, entitled "Amended And Restated Agreement Between The County Of Riverside, The Redevelopment Agency Of The County Of Riverside, The City Of Temecula And The Redevelopment Agency Of The City Of Temecula For Reimbursement And Distribution Of Tax Increment Funds From The Temecula Redevelopment Project" wherein the Agency has agreed to the payment of $6,000,000 to the County of Riverside and to certain obligations related to the acquisition of right of way for the Date/Cherry Interchange (the "County Obligations"); and WHEREAS, in order to refinance the 1993 Bonds, provide for payment of all or a portion of the County Obligations and to finance other redevelopment activities of the Agency within or of benefit to the Redevelopment Project area, the Agency has determined at this time to issue its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds (the "Bonds") under the Redevelopment Law, the principal of and interest on which will be payable from the tax increment revenues received by the Agency from the Redevelopment Project; and WHEREAS, the Agency has duly considered such transactions and wishes at this time to authorize proceedings for the issuance and sale of the Bonds, the refunding and defeasance of the 1993 Bonds and the payment of all or a portion of the County Obligations. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Redevelopment Agency of the City of Temecula as follows: Section 1. Issuance of the Bonds; Approval of the Indenture. The Agency hereby authorizes the issuance of the Bonds in the aggregate principal amount of not to exceed $35,000,000. The Bonds shall be issued pursuant to the Redevelopment Law and pursuant to an Indenture of Trust, dated as of April 1, 2002 (the "Indenture"), by and between the Agency and U.S. Bank, N.A., as trustee (the "Trustee"). The Agency hereby approves the Indenture in the form on file with the Secretary, together with such additions thereto and changes therein as the Executive Director, upon consultation with Bond Counsel and the Agency's General Counsel, shall deem necessary, desirable or appropriate, and the execution thereof by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Executive Director is hereby authorized and directed to execute the final form of the Indenture for and in the name and on behalf of the Agency. It is hereby acknowledged that proceeds of the Bonds deposited to the Project Fund under and as such term is used in the R:/RDA Resos 2002/RDA 02-__ 1 Indenture may be used for, among other purposes satisfaction of all or a portion of the County Obligations. The Agency hereby authorizes the delivery and performance of the Indenture. Section 2. Refunding of the 1993 Bonds. A portion of the proceeds of the Bonds shall be applied to refund and defease the 1993 Bonds pursuant to an Escrow Deposit and Trust Agreement, dated as of April 1, 2002, by and between the Agency and U.S. Bank, N.A., as escrow bank (the "Escrow Agreement"). The Agency hereby approves the Escrow Agreement in the form on file with the Secretary, together with such additions thereto and changes therein as the Executive Director, upon consultation with Bond Counsel and the Agency's General Counsel, shall deem necessary, desirable or appropriate, and the execution thereof by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Executive Director is hereby authorized and directed to execute the final form of the Escrow Agreement for and in the name and on behalf of the Agency. The Agency hereby authorizes the delivery and performance of the Escrow Agreement. Section $. Sale of the Bonds. The Agency hereby approves the bond purchase contract, by and among Stone & Youngberg LLC, as underwriter (the "Underwriter"), the Temecula Public Financing Authority (the "Authority"), and the Agency, in the form on file with the Secretary (the "Bond Purchase Agreement"), together with such additions thereto and changes therein as the Executive Director, upon consultation with Bond Counsel and the Agency's General Counsel, shall deem necessary, desirable or appropriate, and the execution thereof by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Executive Director is hereby authorized and directed to execute the final form of the Bond Purchase Agreement for and in the name and on behalf of the Agency. The Agency hereby approves the negotiated sale of the Bonds to the Authority and the sale of the Bonds by the Authority to the Underwriter pursuant to the Bond Purchase Agreement, so long as the Underwriter's discount, excluding original issue discount, does not exceed 1.25%, the net interest cost of the Bonds does not exceed 6.00%, and the principal amount of the Bonds is not in excess of $35,000,000. Section 4. Official Statement. The Agency hereby authorizes the Executive Director to approve and deem final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934, except for permitted omissions, a form of Official Statement describing the Bonds in the preliminary form on file with the Secretary. Distribution of such preliminary Official Statement by the Underwriter to prospective purchasers of the Bonds is hereby approved. The Executive Director is hereby authorized to execute the final form of the Official Statement, including as it may be modified by such additions thereto and changes therein as the Executive Director, upon consultation with Bond Counsel and the Agency's General Counsel, shall deem necessary, desirable or appropriate, and the execution of the final Official Statement by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Agency hereby authorizes the distribution of the final Official Statement by the Underwriter. The final Official Statement shall be executed in the name and on behalf of the Agency by the Executive Director. Section $. Delivery of the Bonds. The Bonds, when executed, shall be delivered to the Trustee for authentication. The Trustee is hereby requested and directed to authenticate the Bonds by executing the Trustee's certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to or upon the instruction of the Underwriter in accordance with written instructions executed on behalf of the Agency by the Executive Director, which instructions such officer is hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver to the Trustee. R:/RDA Resos 2002/RDA 02-__ 2 Such instructions shall provide for the delivery of the Bonds to the Underwriter in accordance with the Bond Purchase Agreement upon payment of the purchase price therefor. Section 6. Continuinq Disclosure Certificate. The Continuing Disclosure Certificate, in the form on file with the Secretary, is hereby approved. The Executive Director is hereby authorized and directed, for and in the name of and on behalf of the Agency, to execute and deliver the Continuing Disclosure Certificate in said form, with such additions thereto or changes therein as the Executive Director, upon consultation with Disclosure Counsel, shall deem necessary, desirable or appropriate, the approval of such changes to be conclusively evidenced by the execution and delivery by the Executive Director of the Continuing Disclosure Certificate. Section 7. Retention of Consultants. The firms of Fieldman, Rolapp & Associates, Stone & Youngberg LLC, Quint & Thimmig LLP and McFarlin & Anderson are hereby designated as Financial Advisor, Underwriter, Bond Counsel and Disclosure Counsel, respectively, to the Agency in connection with the issuance of the Bonds. The Executive Director is hereby authorized to execute agreements with said firms for their services related to the issuance of the Bonds provided that all fees and expenses of such firms are payable solely from the proceeds of the Bonds. Section 8. Official Actions. The Chairman, the Vice Chairman, the Executive Director, the Treasurer and the Secretary of the Agency, and any and all other officers of the Agency, are hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and sale of the Bonds, the refunding and defeasance of the 1993 Bonds and the payment of all or a portion of the County Obligations as described herein. Whenever in this resolution any officer of the Agency 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. Section 9. Effective Date. The Secretary shall certify to the passage and adoption of this Resolution, which shall take effect immediately upon its adoption. R:/RDA Resos 2002/RDA 02-__ 3 PASSED, APPROVED AND ADOPTED, by the Governing Board of the Redevelopment Agency of the City of Temecula at a regular meeting held on the 26th day of March, 2002. Jeff Comemhero, Chairperson ATTEST: Susan W. Jones, CMC City Clerk/Agency Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, Secretary of the Redevelopment Agency of the City of Temecula, HEREBY DO CERTIFY that the foregoing Resolution No. RDA 02- was duly adopted at a regular meeting of the Governing Board of the Redevelopment Agency of the City of Temecula on the 26th day of March, 2002, by the following roll call vote: AYES: AGENCYMEMBERS: NAYS: AGENCYMEMBERS: ABSENT: AGENCYMEMBERS: ABSTAINED: AGENCYMEMBERS: Susan W. Jones, CMC City Clerk/Agency Secretary R:/RDA Resos 2002/RDA 02-__ 4 RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF TAX ALLOCATION BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND APPROVING OTHER MATTERS RELATED THERETO WHEREAS, the City of Temecula and the Redevelopment Agency of the City of Temecula (the "Agency") have entered into a Joint Exercise of Powers Agreement creating the Temecula Public Financing Authority (the "Authority"); and WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Law"), the Authority is authorized to purchase bonds issued by the Agency for financing and refinancing public capital improvements, working capital, liability and other insurance needs, or projects whenever there are significant public benefits, as determined by the Authority; and WHEREAS, pursuant to the Law and the Agreement, the Authority is further authorized to sell bonds so purchased to public or private purchasers at public or negotiated sale; and WHEREAS, the Authority desires to purchase from the Agency not to exceed $35,000,000 initial principal amount of the Agency's 2002 tax allocation bonds (the "Bonds"), solely from the proceeds received from the Authority's concurrent sale of the Bonds to Stone & Youngberg LLC (the "Underwriter"); and WHEREAS, the Agency has caused a bond purchase contract to be submitted to the Authority for approval; and WHEREAS, the Authority now desires to approve the bond purchase contract and any other documents necessary for the purchase and sale of the Bonds as provided below. 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 Board of Directors hereby finds and determines that the issuance of the Bonds and the purchase and sale thereof by the Authority will result in savings in effective interest rates, bond underwriting costs and bond issuance costs and thereby result in significant public benefits to the Agency and the Authority within the contemplation of Section 6586 of the Law. Section 2. The proposed bond purchase contract (the "Bond Purchase Agreement"), by and among the Agency, the Authority and the Underwriter, in the form on file with the Secretary of the Authority, is hereby approved. The Executive Director of the Authority is hereby authorized and directed, for and in the name and on behalf of the Authority, to accept the request that the Authority purchase the Bonds from the Agency and to accept the offer of the Underwriter to purchase the Bonds from the Authority, each subject to the terms and conditions of the Bond Purchase Agreement, and to execute and deliver the Bond Purchase Agreement to the Agency and the Underwriter; provided, however, that, the net interest cost of the Bonds shall R:/TPFA Resos 2002/TPFA 02-__ 1 not exceed 6.00% per annum and the Underwriter's discount (without regard to any original issue discount) shall not be more than 1.25% of the principal amount of the Bonds. The final principal amount of the Bonds shall be the amount set forth in the executed Bond Purchase Agreement, not to exceed $35,000,000. The approval of any additions or changes in such form of the Bond Purchase Agreement shall be conclusively evidenced by such execution and delivery by the Executive Director of the Purchase Contract. Section 3. The Chairman, the Executive Director, the Treasurer and the Secretary of the Authority, and any and all other officers of the Authority, are hereby authorized and directed, for and in the name and on behatf of the Authority, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful purchase and sale of the Bonds as described herein. 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. Section 4. The Secretary shall certify to the passage and adoption of this Resolution, which shall take effect immediately upon its adoption. R:/TPFA Resos 2002/TPFA 02-__ 2 PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temecula Public Financing Authority at a meeting held on the 26th day of March, 2002. Ron Roberts,Chairperson ATTEST: Susan W. Jones, CMC City Clerk/Agency Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, Secretary of the Temecula Public Financing Authority, HEREBY DO CERTIFY that the foregoing Resolution No. TPFA 02- was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 26th day of March, 2002, by the following vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Susan W. Jones, CMC City Clerk/Agency Secretary R:FFPFA Resos 2002/TPFA 02-__ 3 PRELIMINARY OFFICIAL STATEMENT NEW ISSUE - BOOK-ENTRY ONLY RATINGS Standard & Poor's: (See "Rating" herein) In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however to certain qualificationsdescribed herein, under existing law, the interest on the 2002 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 individ ual and corporate alternative minimum taxes, although it is included in certain income and earnings in computing the alternative minimum tax imposed on corporations. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See "TAX MATTERS" herein. $ REDEVELOPMENT AGENCY OF TIt~ CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO. 1 2002 TAX ALLOCATION BONDS (RIVERSIDE COUNTY, CALIFORNIA) Dated: Date of Issuance Due: August 1, as set forth below Proceeds from the sale of the Redevelopment Agency of the City of Temccula (thc "Agency")Temccula Redevelopment Project No. I 2002 Tax Allocation Bonds (the "2002 Bonds"), will be used to (i) refinance certain of the Agency's redevelopment activities within and of benefit to the Agency's Temecula Redevelopment project No. 1 (the "Project Area')and specifically to refund the Agency's Redevelopment Project No. I 1993 Tax Allocation Bonds, Series A (the "Prior Bonds"), (ii) discharge an obligation of the Agency to the County of Riverside, (iii) finance redevelopment activities within or of benefit to the Project Area, (iv) make a deposit to a reserve account, and (v) provide for the costs of issuing the 2002 Bonds. Intereston the 2002 Bonds will be payable semi-annually on each February I and August 1 (each an "Interest Payment Date"), commencing August 1, 2002. The 2002 Bonds will be issued in fully registered form without coupons and will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC'). DTC wifi act as securities depository for the 2002 Bonds. Purchases of beneficial interests in the 2002 Bonds will be made in book-eniB, form only in denominations of $5,000 or any integral multiple thereof. Purchasers of such beneficial interests ) will not receive physical certificates representing their interests in the 2002 Bonds. Payment of principal of, interest anti premiura, if any, on the 2002 Bonds will be made directly to DTC or its nominee, Cede & Co., so long as DTC or Cede & Co. is the registered Owner of the 2002 Bonds. Disbursement of such payments to the DTC Participants (as defined herein) is the responsibility of DTC and disbursement of such payments to the Beneficial Owners (as defined herein) is the responsibility of the DTC Participants, as more fully described herein. See "THE 2002 BONDS - Book-Entry-Only System" herein. The 2002 Bonds will be issued under an Indenture of Trust, dated as of 1,2002 (the "Indenture"), by and beiween theAgency and U.S. Bank, N.A., as trustee (the Trustee ). The 2002 Bonds will be sole te the Temecula Public Financing Authority (the Authority' ) for immediate resale to the Underw;iter. The 2002 Bonds are special obligations of the Agency and are payable solely from and secured by a pledge ora portion of the tax increment revenues receivable by the Agency with respect te the Project Area pursuant to Article 6 of Chapter 6 of the California Redevelopment Law (herein referred to as the "Tax Increment Revenues"), subject to the provisions of the Indenture permitting the application thereof for other purposes, and by a pledge of amounts in certain funds and accounts established under the Indenture, as further discussed herein. The Agency may issue debt on a parity with the 2002 Bonds. The 2002 Bonds are subject to optional and mandatory redemption prior to maturity. See "THE 2002 BONDS - Redemption" herein. The scheduled payment of principal and interest on the 2002 Bonds will be insured by a municipal bond insurance policy to be issued simultaneously with delivery of the 2002 Bonds by [INSURER LOGO] THE 2002 BONDS ARE SPECIALOBLIGATIONS OF THE AGENCY PAYABLE FROM THE TP.X INCREMENT REVENUES,AS DESCRIBED HEKEIN, AND AMOUNTS IN CERTAIN FUNDS AND ACCOUNTS MAINTAINED UNDER THE INDENTURE AND, AS SUCH, AKE NOT A DEBT OF THE CITY OF TEMECULA (THE "C~TY~)~RTHE$TATE~FCALIF~RN~A~RANY~FTHESTATE'S~L~T~CALSUBDIV~$~NS(~THERTHANTHEAGENCY~T~THELIM~TEDEXTENTSETF~RTH IN THE INDENTURE), AND NEITHER THE Cf ID[ NOR THE STATE OF CALIFORNIA OR ANY OF 1TS POLITICAL SUBDIVISIONS (OTHER THAN THE AGENCY), IS LIABLETHEREFOR. THE2002 BONDSARENOT PAYABLEFROM, ANDARENOT SECURED BY, ANY FUNDS OFTHEAGENCY, OTHER THAN THETAX INCREMENT MATURITY SCHEDULE' $ Serial Bonds Base CUSIP No. Maturity Principal Interest CUSIP Maturity Principal Interest CUSIP (August 1) Amount Rate Price No~ (August I) Amount Rathe Price No...~ $ __ % Term Bonds due August 1,20XX - Price % CUSIP No. __ $ __%TermBondsdueAugust 1,20XX - Price % CUSIPNo.__ This cover page contains information for quick reference only. It is not intended to be a sumrnary of all factors relating tmn investment in the 2002 Bonds. Investors should review the entire Official Statement before making any investment decision with respect to the 2002 Bonds. Prehmtnaty, subject to change. The 2002 Bonds are offered when, as and if issued, subject to the approval as to their legality by Quint & Thimmig LLP, San Francisco, California. BondCounseLandsubjecttocertainotherconditions. CertainlegalmatterswillbepasseduponfortheAgencyandtheAuthoritybyRichards, Watson & Gershon, Los Angeles, California, acting as Counsel to the Agency and the Authority, and by McFarBn & Anderson, Lake Forest, California, in its capacity as Disclosure Counsel to the Agency and the Authority, It is anticipated that the 2002 Bonds will be available for delivery through DTC in New York, New York, on or about May ~ 2002. Dated: May __, 2002 The following language to be inserted by the printer, in red, at the top of the POS front cover: PRELIMINARY OFFICIAL STATEMENT DATED APRIL ,2002 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. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this PreliminaryOfficial Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in anyjurisdicfion in which such offer, solicitation or sale would be unlawfulprior to registration or qualification under the securities laws of such jurisdiction. No dealer, broker, salesperson or other person has been authorized by the Agency to give any information or to make any representations in connection with the offer or sale of the 2002 Bonds other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the Agency. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the 2002 Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers of the 2002 Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. The information set forth herein has been obtained from sources which are believed to be reliable but such information is not guaranteed as to accuracy or completeness. The information and expressions of opinions herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstance s, create any implication that there has been no change in the affairs of the Agency since the date hereof. All summaries of the Indenture and other documents are made subject to the provisions of such documents and do not purport to be complete statements of any or all such provisions. The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. This Official Statement is submitted in connection with the sale of the 2002 Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. IN CONNECTION WITH ~IIS OFFERING, THE INITIAL PURCHASER OF THE BONDS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 2002 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE INITIAL PURCHASER OF THE BONDS MAY OFFER AND SELL THE 2002 BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICE STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICE MAY BE CHANGED FROM TIME TO TIME BY THE INITIAL PURCHASER OF THE 2002 BONDS. THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. Certain statements included or incorporated by reference in this Official Statement constitute "forward-looking statements." Such statements are generally identifiable by the terminology used, such as "plan," "expect," "estimate," "budget" or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be materially different from any furore results, performance or achievements expressed or implied by such forward-looking statements. The Agency does not plan to issue any updates or revisions to those forward-looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based occur. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AGENCY BOARD MEMBERS Jeff Comerchero, Chairperson Michael S. Naggar, Vice Chairperson Albert "Sam" Pratt, Board Member Ron Roberts, Board Member Jeff Stone, Board Member AGENCY STAFF Shawn Nelson, Executive Director Genie Roberts, Agency Treasurer Susan Jones, Agency Secretary SPECIAL SERVICES Counsel to the Agency Richards, Watson & Gershon Los Angeles, California Bond Counsel Quint & Thimmig LLP San Francisco, California Disclosure Counsel McFarlin & Anderson Lake Forest, California Fiscal Consultant HdL Companies Diamond Bar, California Financial Advisor Fieldman, Rolapp & Associates h-vine, California Trustee U.S. Bank, N.A. Los Angeles, California [Verification Agent (if necessary) Grant Thornton LLP Minneapolis, Minnesota] TABLE OF CONTENTS Page 131TRODUCTION ................................................................... 1 General ..................................................................... 1 The Authority, the Agency and the Redevelopment Plan ............................... 2 Purpose of Issuance ........................................................... 2 The 2002 Bonds .............................................................. 2 Source of Payment for the Bonds ................................................. 3 Parity Debt .................................................................. 3 Bondowners' Risks ............................................................ 3 Continuing Disclosure ......................................................... 4 Tax Matters .................................................................. 4 Municipal Bond Insurance ...................................................... 4 Professionals Involved in the Offering ............................................. 4 Additional Information ......................................................... 4 ESTIMATED SOURCES AND USES OF FUNDS ......................................... 4 Refimding of Prior Bonds ....................................................... 6 Redevelopment Activities ....................................................... 6 DEBT SERVICE SCHEDULE ......................................................... 7 THE 2002 BONDS .................................................................. 8 General Provisions ............................................................ 8 Redemption .................................................................. 8 Book-Entry and DTC ......................................................... 10 SECURITY FOR THE 2002 BONDS ................................................... 11 Tax Increment Revenues ....................................................... 11 Pledge of Tax Increment Revenues .............................................. 11 Limited Obligations .......................................................... 12 Application of Tax Increment Revenues .......................................... 13 Reserve Account ............................................................. 14 Parity Debt ................................................................. 15 THE MUNICIPAL BOND INSURANCE POLICY ........................................ 16 Payment Pursuant to Municipal Bond Insurance Policy .............................. 16 ~ [Insurer] ......................................................... 16 RISK FACTORS ................................................................... 16 Bonds Are Limited Obligations and Not General Obligations .......................... 17 Tax Increment Revenues ....................................................... 17 Estimated Tax Increment Revenues .............................................. 18 Educational Revenue Augmentation Fund ......................................... 18 Economic Concentration ....................................................... 18 Concentration of Ownership and Management ..................................... 18 Future Land Use Regulations and Growth Control Initiatives .......................... 19 Bankruptcy and Foreclosure .................................................... 19 Seismic Factors and Flooding ................................................... 20 Hazardous Substances ......................................................... 20 Recent Litigation Regarding Increase in Assessed Valuation .......................... 20 School District Litigation ...................................................... 21 Loss of Tax Exemption ........................................................ 21 Assumptions and Projections ................................................... 21 LIMITATIONS ON TAX INCREMENT REVENUES ..................................... 21 Property Tax Collection Procedure .............................................. 21 -i- Supplemental Assessments ..................................................... 22 Tax Collector Fees ........................................................... 22 Unitary Property ............................................................. 22 Property Tax Rate Limitations - Article XIIIA ..................................... 22 Article XII]B of the California Constitution ........................................ 23 Pass-Through Agreements; Other Contractual Obligations ............................ 24 Exclusion of Tax Increment Revenues for General Obligation Bonds Debt Service ......... 25 Proposition 218 .............................................................. 25 Future Initiatives or Legislation ................................................. 25 Low and Moderate Income Housing .............................................. 26 Redevelopment Plan Limitations Under AB 1290 ................................... 26 THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ........................ 26 Agency Members ............................................................ 26 Agency Administration ........................................................ 27 Agency Powers .............................................................. 27 Outstanding Indebtedness of the Agency .......................................... 27 Investment of Agency Funds ................................................... 28 Controls, Land Use and Building Restrictions ...................................... 28 THE REDEVELOPMENT PLAN ...................................................... 31 Description of the Project Area ................................................. 32 Land Uses .................................................................. 32 Development in the Project Area ................................................ 32 Assessed Valuation ........................................................... 32 Appeals of Assessed Values .................................................... 34 Fiscal Consultant's Report ..................................................... 35 Direct and Overlapping Bonded Debt ............................................ 36 Project Area Pass-Through Agreements ........................................... 36 COVERAGE ANALYSIS ............................................................ 36 THE TEMECULA PUBLIC FINANCING AUTHORITY ................................... 37 CERTAIN LEGAL MATFERS ........................................................ 37 Legal Opinions .............................................................. 37 Enforceability of Remedies .................................................... 38 CONTINUING DISCLOSURE ........................................................ 38 ABSENCE OF LITIGATION ......................................................... 38 TAX MATTERS ................................................................... 38 UNDERWRITING .................................................................. 39 RATINGS ........................................................................ 39 VERIFICATION OF MATHEMATICAL ACCURACY .................................... 39 PROFESSIONAL FEES ............................................................. 40 MISCELLANEOUS ................................................................ 40 APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE ........... A-1 APPENDIX B - FISCAL CONSULTANT'S REPORT ................................... B4 APPENDIX C - AGENCY'S AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING JUNE 30, 2001 ............................................. C-1 APPENDIX D - FORM OF BOND COUNSEL OPINION ................................ D-1 -ii- APPENDIX E - FORM OF CONTINUING DISCLOSURE CERTIFICATE .................. E-1 APPENDIX F - GENERAL INFORMATION REGARDING THE CITY ..................... F-1 APPENDIX G - FORM OF MUNICIPAL BOND INSURANCE POLICY .................... G-1 APPENDIX H - BOOK-ENTRY SYSTEM ............................................ H-1 -iii- TEMECULA AND SOUTHERN CALIFORNIA REGION This map was made hy lhe City of Temecula Geographic Information System OFFICIAL STATEMENT $ REDEVELOPMENT AGENCY OF TH]~ CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO. 1 2002 TAX ALLOCATION BONDS (RIVERSIDE COUNTY, CALIFORNIA) INTRODUCTION This introduction is not a summary of this Offtcial Statement. It is only a brief description of and guide to, and is qualified in its entirety by, more complete and detailed information contained in this Official Statement and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the 2002 Bonds to potential investors is made only by means of this Official Statement. References to, and summaries of, provisions of the laws of the State of California or any other document referred to herein do not purport to be complete and such references are quali~ed in their entirety by reference to the original source document. General This Official Statement of the Redevelopment Agency of the City of Temecula (the "Agency") provides information regarding the sale by the Agency of $ ' aggregate principal amount of the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds (the "2002 Bonds"). The 2002 Bonds and any additional parity debt ("Parity Debt") issued or incurred by the Agency in accordance with the Indenture are referred to herein collectively as the "Bonds." Definitions of certain capitalized terms used in this Official Statement are set forth in "APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE." This Official Statement contains brief descriptions of the 2002 Bonds, the Indenture, the Agency, the Authority and the Redevelopment Plan. Such descriptions do not purport to be comprehensive or definitive. All references in this Official Statement to documents are qualified in their entirety by reference to those documents, and references to the 2002 Bonds are qualified in their entirety by reference to the form of the 2002 Bonds included in the Indenture. Copies of the Indenture and other documents described in this Official Statement may be obtained from the Agency as described under the subheading "Additional Information" below. On the date of issuance of the 2002 Bonds, the Agency will sell the 2002 Bonds to the Temecula Public Financing Authority (the "Authority"), a joint exercise of powers authority formed pursuant to the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, whose members consist of the Agency, the City of Temecula (the "City") and the Authority in turn will sell the 2002 Bonds to the Underwriter. The Authority, the Agency and the Redevelopment Plan The Authority is a California joint powers authority, organized pursuant to a Joint Exercise of Powers Agreement, dated (the "JPA Agreement"), between the City and the Agency. The JPA Agreement was entered into pursuant to the Joint Exercise of Powers Act, Chapter 5 (commencing with Section 6500) &Division 7 of Title 1 of the Government Code of the State of California (the "Joint Powers Act"). The Authority is a separate entity constituting a public instrumentality of the State of California and was formed for the public purpose of assisting in financing and refinancing projects pursuant to the Joint Powers Act. *Preliminary, subject to change. On July 12, 1988, the County of Riverside (the "County") (prior to the incorporation of the City), adopted the "County of Riverside Redevelopment Plan 1 -1988" by Ordinance No. 658. On December 1, 1989 the City was incorporated. All of the area within the County Redevelopment Plan was included within the boundaries of the City. The Agency was established on April 27, 1991 by the City Council (the "City Council") of the City by adoption of Ordinance No. 91-08 under the provisions of the Community Redevelopment Law, constituting Part 1 of Division 24 (commencing with Section 33000) of the California Health and Safety Code, as amended (the "Redevelopment Law."). The City Council at the same time declared itself to be the Agency. The five members of the City Council serve as the governing body of the Agency and exemise all rights, powers, duties and privileges of the Agency. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA" herein. The City Council of the City adopted Ordinance No. 91-11 on May 9, 1991 and Ordinance No. 91-15 on April 9, 1991 approving the County Redevelopment Plan as the Temecula Redevelopment Plan No. 1 (the "Redevelopment Plan") and transferring jurisdiction over the Redevelopment Plan to the Agency. This transfer was effective July 1, 1991. The Temecula Redevelopment Project No. 1, the area encompassed by the Redevelopment Plan (the "Project Area"), is primarily commercial and industrial in nature. It is generally located along Interstate 15 from the City's northern border with the City of Murrieta to the intersection of Highway 79 on the south. The Project Area encompasses approximately 1,635 acres. The Project Area includes the Promenade Mall site, Old Town and industrial and business park areas west of the freeway. See "THE REDEVELOPMENT PLAN" herein. The total assessed valuation of taxable property in the Project Area in fiscal year 2001-02 is approximately $974,148,000 greater than the aggregate adjusted assessed valuation in the applicable base year. Assessed valuations in the Project Area are subject to numerous risks which could result in decreases from those reported for fiscal year 2001-02. See "RISK FACTORS" herein. Purpose of Issuance Proceeds from the sale of the 2002 Bonds will be used to (i) refinance certain redevelopment activities of the Agency within or of benefit to the Project Area pursuant to the Redevelopment Plan (as defined herein) and specifically to refund the Agency's Temecula Redevelopment Project No. 1 1993 Tax Allocation Bonds, Series A (the "Prior Bonds"); (ii) discharge an obligation of the Agency to the County under an Amended and Restated Agreement Between the County, the Redevelopment Agency of the County, the City and the Agency for Reimbursement and Distribution of Tax Increment Funds from the Redevelopment Plan (including a payment to the County of $6,000,000) (the "County Pass-Through Agreement"); (iii) finance redevelopment activities within or of benefit to the Project Area; (iv) make a deposit to the Reserve Account for the Bonds; and (v) provide for the costs of issuing the 2002 Bonds. See "ESTIMATED SOURCES AND USES OF FUNDS" herein. The 2002 Bonds The 2002 Bonds are being issued pursuant to the laws of the State of California (the "State"), including the provisions of the Redevelopment Law, Resolution No. , adopted by the Agency on March 26, 2002 (the "Resolution"), and an Indenture of Trust, dated as of April 1,2002 (the "indenture"), between the Agency and U.S. Bank, N.A., as trustee (the "Trustee"). See "THE 2002 BONDS" herein and "APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE" attached hereto. The 2002 Bonds will be issued in denominations of $5,000 each or integral multiples thereof. Interest on the 2002 Bonds is payable on each February 1 and August 1, commencing on August 1, 2002. Interest and principal on the 2002 Bonds are payable by the Trustee to DTC which will be responsible for remitting such principal and interest to the Participants (as defined in Appendix H) which will in turn be responsible for remitting such principal and interest to the Beneficial Owners of the 2002 Bonds. No physical distribution of the 2002 Bonds will be made to the public initially. See "THE 2002 BONDS - Book-Entty- Only System" herein. 2 Source of Payment for the Bonds The 2002 Bonds are special obligations of the Agency and arc payable from and secured by a pledge of Tax Increment Revenues and amounts in certain funds and accounts held under the Indenture. The term Tax Increment Revenues is defined in the Indenture as all taxes annually allocated and paid to the Agency with respect to the Project Area following the delivery of the 2002 Bonds pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Redevelopment Law and Section 16 of Article XVI of the Constitution of thc State of California including all payments, subventions and reimbursements (if any) to the Agency specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations; but excluding (a) amounts of such taxes required to be deposited into the Low and Moderate Income Housing Fund of the Agency in any Fiscal Year pursuant to Section 33334.3 of the Redevelopment Law, Co) all amounts of such taxes required to be paid by the Agency pursuant to any Pass-Through Agreement (to the extent that the payments thereunder are not subordinated to the Agency's obligation to repay the Bonds), and (c) the Business Inventory Tax Subvention. See "SECURITY FOR THE 2002 BONDS - Tax Increment Revenues" and "LIMITATIONS ON TAX INCREMENT REVENUES - Pass- Through Agreements; Other Contractual Obligations" herein. The Tax Increment Revenues are not subject to the pledge and lien of any indebtedness of the Agency other than the 2002 Bonds and any Parity Debt that may be issued in accordance with the Indenture, and certain other obligations which have been made or are by their terms subordinate to the payment of the Bonds. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Outstanding Indebtedness of the Agency" herein. The Bonds are not payable from, and are not secured by, any funds of the Agency other than the Tax Increment Revenues and amounts in certain funds and accounts, specifically pledged therefore under the Indenture. See "SECLrRITY FOR THE 2002 BONDS" herein. Parity Debt The Indenture provides that in addition to the 2002 Bonds, the Agency may issue or incur Parity Debt secured by a lien on Tax Increment Revenues on a parity with the 2002 Bonds to finance the Redevelopment Plan in such principal amount as shall be determined by the Agency. The Agency may issue or incur Parity Debt subject to certain specific conditions set forth in the Indenture. See "SECURITY FOR THE 2002 Bonds - Parity Debt." Bondowners' Risks Prospective investors should review this Official Statement and the Appendices hereto in their entirety and should consider certain risk factors associated with the purchase of the 2002 Bonds, some of which have been summarized in the section herein entitled "RISK FACTORS." Continuing Disclosure The Agency has covenanted, pursuant to a Continuing Disclosure Certificate executed on the date of delivery of the 2002 Bonds, for the benefit of Owners and Beneficial Owners of the 2002 Bonds to provide certain financial information and operating data related to the Agency by not later than eight months following the end of the Agency's Fiscal Year (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events, if material. The Annual Report will be filed by the Agency with each Nationally Recognized Municipal Securities Information Repository, and with the appropriate State information depository, if any. The notices of material events will be filed by the Agency with each Nationally Recognized Municipal Securities Information Repository or with the Municipal Securities Rulemaking Board (and with the appropriate State information depository, if any). The specific nature of the information to be contained in the Annual Report and any notices of material events is summarized below under the caption "CONTINUING DISCLOSURE." A complete copy of the Continuing Disclosure Certificate is set forth in "APPENDIX E - FORM OF CONTINUING DISCLOSURE CERTIFICATE." The covenants of the Agency in the Continuing Disclosure Certificate have been made in order to assist the underwriter of the 2002 Bonds in complying with S.E.C. Rule 15c2-12(b)(5). The Agency has no previous disclosure obligation under S.E.C. Rule 15c2-{12)(b)(5). Tax Matters In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, under existing law, and assuming compliance by the Agency with certain covenants in the Indenture, interest on the 2002 Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations. In the further opinion of Bond Counsel, interest on the 2002 Bonds is exempt from State of California personal income taxes. See "TAX MATFERS" herein. Municipal Bond Insurance Payment of principal of and interest on the 2002 Bonds as the same shall become due will become secured by a financial guaranty insurance policy to be issued simultaneously with the issuance of the 2002 Bonds by · See "THE MUNICIPAL BOND INSURANCE POLICY" herein. Professionals Involved in the Offering Thc proceedings of thc Agency in connection with the issuance of the 2002 Bonds are subject to the approval as to their legality of Quint & Thimmig LLP, San Francisco, California, Bond Counsel to the Agency. McFartin & Anderson, Lake Forest, California, is serving as Disclosure Counsel to the Agency ]'or the Bonds. Certain legal matters for the Agency will be passed upon for the Agency by Richards, Watson & Gershon, Los Angeles, California, Counsel to the Agency. HdL Companies is acting as Fiscal Consultant to the Agency. Fieldman, Rolapp & Associates is acting as financial advisor to the Agency. U.S. Bank~ N.A., Los Angeles, California, will act as the Trustee under thc Indenture. [Grant Thomtun LLP will act as the Verification Agcnt.] Additional Information This Official Statement speaks only as of its date, and the information contained herein is subject to change without notice. Copies of documents referred to herein are available from the Agency upon written request, c/o the Redevelopment Agency of the City of Temecula, 43200 Business Park Drive, Tcmecula, California 92590, Attention: Agency Sccretary. The Agency may impose a charge for copying, mailing and handling expenses related to any request for documents. 4 ESTIMATED SOURCES AND USES OF FUNDS The following table sets forth a summary of the sources and uses of funds associated with the issuance and sale of the 2002 Bonds. Sources of Funds Par Amount of Bonds $ Less: Original Issue Discount Less: Underwnter's Discount Less: 1993 Bonds Debt Service Reserve Account Total Sources $ Uses of Funds Deposit to Escrow Fund Deposit to Reserve Account(1) $ Deposit to Project Fund(2) Deposit to Costs of Issuance Fund(3) Total Uses $ (1) Equal to the initial Reserve Requirement. See "SECURITY FOR THE 2002 BONDS - Reserve Account" herein. (2) Includes payment of $6,000,000 to the County pursuant to the County Pass-Through Agreement. (3) Costs of issuance includes, among other things, fees and expenses of bond counsel, disclosure counsel, financial advisor, verification agent, rating agency and Trustee, premium for Municipal Bond Insurance Policy and printing expenses. Refunding of Prior Bonds A portion of the proceeds from the sale of the 2002 Bonds, together with certain funds made available through the defeasance of the Prior Bonds, will be deposited in trust with U.S. Bank, N.A. (the "Escrow Agent") pursuant to an escrow deposit and trust agreement (the "Escrow Deposit and Trust Agreement") between the Agency and the Escrow Agent. The funds deposited with the Escrow Agent will be applied to the purchase of direct obligations of the United States of America (the "Escrowed Federal Securities"). The Escrowed Federal Securities, including interest thereon, together with other moneys held in trust by the Escrow Agent, will be sufficient to pay principal and interest coming due on the Prior Bonds through June ,2002, and to redeem all of the then outstanding Prior Bonds in full on June ,2002, together with a redemption premium of I%. The foregoing deposit with the Escrow Agent will result in the defeasance of the Prior Bonds, pursuant to the provisions of the financing documents under which they were issued, as of the date of issuance of the Prior Bonds. See "VERIFICATION OF MATHEMATICAL ACCURACY" herein. Neither the principal of the Escrowed Federal Securities deposited with the Escrow Agent nor the interest thereon will be available for the payment of the 2002 Bonds. The Prior Bonds were used to fund the construction of various facilities located in the Project Area, including the Northwest Sports Complex and related improvements and improvements to the historic "Old Town Temecula" section of the City. Redevelopment Activities The Agency has determined to use 2002 Bonds proceeds to discharge an obligation of the Agency to the County under the County Pass-Through Agreement, including a payment to the County of $6,000,000. In addition, the Agency will finance redevelopment activities within or of benefit to the Project Area. The other activities financed may include, among other things, a Community Theater project, a Children's Museum and the payment of an Agency obligation to the City. [EXPAND] DEBT SERVICE SCHEDULE* The following table sets £o~h the scheduled debt service for the 2002 Bonds, assuming no redemptions of the 2002 Bonds other than mandatory sinking account redemptions. Year Ending Total Debt August 1 Principal°) Interest Service 2002 $ $ $ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 20XX (OIndicates mandatorysinking aceountpayments. *Preliminary, subject to change. 6 THE 2002 BONDS General Provisions The 2002 Bonds will be issued and sold in the initial aggregate principal amount of $ . The 2002 Bonds will be delivered in registered form, without coupons, in authorized denominations of $5,000 or any integral multiples thereof. Interest on the 2002 Bonds is payable semiannually on February 1 and August 1 of each year, commencing August 1, 2002 (each, an "Interest Payment Date"), to the registered Owner thereof as of the close of business on the fifteenth (15th) calendar day of the month preceding each Interest Payment Date, whether or not such fifteenth (15th) calendar day is a business day (each, a "Record Date"). Principal of the 2002 Bonds will be payable on August 1 in each of the years and in the principal amounts shown on the cover page hereof. Interest on the 2002 Bonds is payable by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the 2002 Bonds at their respective addresses shown on the registration books kept by the Trustee as of the applicable Record Date; provided, however, that payment of interest to each registered Owner of $1,000,000 or more aggregate principal amount of Bonds may be made by wire transfer to an account in the United States of America as specified by such Owner in a written request filed with the Trustee prior to such Record Date. Principal of and premium, if any, on the 2002 Bonds is payable in lawful money of the United States of America by check of the Trustee upon presentation and surrender thereof at the corporate trust office of the Trustee designated pursuant to the Indenture. The 2002 Bonds will be dated their date of issuance and will bear interest (calculated on the basis of a 360-day year comprised of twelve 30-day months) from the Interest Payment Date next preceding the date of authentication thereof, unless (i) a Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event such Bond will bear interest from such Interest Payment Date, or (ii) a Bond is authenticated on or before July 15, 2002, in which event such Bond will bear interest from the date of issuance of the 2002 Bonds; or (c) if, as of the date of authentication of any 2002 Bond, interest thereon is in default, in which event such 2002 Bond shall bear interest from the date to which interest has previously been paid in full payable on each Interest Payment Date. Any interest not paid when due or duly provided for on any Interest Payment Date shall be paid to the person in whose name the 2002 Bond is registered at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee. The Trustee shall give notice of such special record date to the Owner not less than 10 days prior thereto. Redemption Optional Redemption of 2002 Bonds. The 2002 Bonds maturing on or before August 1,20~ are not subject to optional redemptionprior to maturity. The 2002 Bonds maturing onor after August 1, 20__, shall be subject to redemption in whole or in part at the option of the Agency on any date on or after August 1, 20__, among such maturities as shall be determined by the Agency and by lot within a maturity, from any available source of funds at the following redemption prices (expressed as percentages of the principal amount of the 2002 Bonds to be redeemed) together with accrued interest thereon to the date fixed for redemption. Redemption Redemption Periods Price August 1, 20__ through July 3 I, 20__ % August 1, 20__ through July 31, 20__ August 1, 20__ and thereafter Sinking Account Redemption of 2002 Bonds. The 2002 Bonds maturing on August 1, 20 and August 1,20__ (the "2002 Term Bonds"), shall also be subject to mandatory sinking fund redemption~ part Prehnunary, subject to change. 7 by lot on August 1, 20__ and August 1, 20__, respectively, and on August 1 in each year thereafter as set forth in the following tables, from Sinking Account payments made by the Agency pursuant to the Indenture at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium, or in lieu thereof shall be purchased in whole or in part as described below, in the aggregate respective principal amounts and on the respective dates as set forth in the following tables; provided, however, that if some but not all of the 2002 Term Bonds have been optionally redeemed, the total amount of all future Sinking Account payments shall be reduced by the aggregate principal amount of 2002 Term Bonds so redeemed, to be allocated among the Sinking Account payments as are thereafter payable in integral multiples of $5,000 as determined by the Agency. 2002 Term Bonds Maturing August 1, 20__ Sinking Account Redemption Date Principal Amount To Be Redeemed (August 1) $ 20__ (maturity) 2002 Term Bonds Maturing August 1, 20~ Sinking Account Redemption Date Principal Amount (August 1) To Be Redeemed $ 20-- (maturity) In lieu of sinking fund redemption of 2002 Term Bonds, amounts in the Special Fund established under the Indenture may also be used and withdrawn by the Agency at any time for the purchase of 2002 Term Bonds otherwise required to be redeemed on the following August 1 at public or private sale as and when and at such prices (including brokerage and other charges and including accrued interest), as the Agency may in its discretion determine. The par amount of any of the 2002 Term Bonds so purchased by the Agency in any twelve-month period ending on June 15 in any year shall be credited towards and shall reduce the par amount of the 2002 Term Bonds otherwise required to be redeemed on the following August 1. Notice of Redemption. The Trustee on behalf and at the expense of the Agency shall mail (by first class mail, postage prepaid) notice of any redemption at least thirty (30) but not more than sixty (60) days prior to the redemption date, to (i) the Owners of any 2002 Bonds designated for redemption at their respective addresses appearing on the Registration Books, and (ii) the Securities Depositories and to one or more Information Services designated by the Agency to the Trustee; provided, however, that such mailing shall not be a condition precedent to such redemption and neither failure to receive any such notice nor any defect in any notice given shall affect the validity of the proceedings for the redemption of such 2002 Bonds or the cessation of the accrual of interest on the 2002 Bonds called for redemption. Such notice shall state the redemption date and the redemption price, shall designate the CUSIP number of the 2002 Bonds to be 8 redeemed, and shall require that such 2002 Bonds be then surrendered at the office of the Trustee for redemption at the redemption price, giving notice also that further interest on such 2002 Bonds will not accrue from and after the redemption date. Notwithstanding the foregoing, in the case of any optional redemption of the 2002 Bonds, the notice of redemption shall state that the redemption is conditioned upon receipt by the Trustee of sufficient moneys to redeem the 2002 Bonds on the anticipated redemption date, and that the optional redemption shall not occur if by no later than the scheduled redemption date sufficient moneys to redeem the 2002 Bonds have not been deposited with the Trustee. In the event that the Trustee does not receive sufficient funds by the scheduled optional redemption date to so redeem the 2002 Bonds to be optionally redeemed, the Trustee shall send written notice to the Owners of the 2002 Bonds, to the Securities Depositories and to one or more of the Information Services to the effect that the redemption did not occur as anticipated, and the 2002 Bonds for which notice of optional redemption was given shall remain Outstanding for all purposes of this Indenture. Partial Redemption of 2002 Bonds. In the event only a portion of any 2002 Bond is called for redemption, then upon surrender of such 2002 Bond the Agency shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Agency, a new 2002 Bond or 2002 Bonds of the same interest rate and maturity, of authorized denominations, in aggregate principal amount equal to the unredeemed portion of the 2002 Bond to be redeemed. Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the redemption price of and interest on the 2002 Bonds so called for redemption shall have been duly deposited with the Trustee, such 2002 Bonds so called shall cease to be entitled to any benefit under the Indenture other than the right to receive payment of the redemption price and accrued interest to the redemption date, and no interest shall accrue thereon from and after the redemption date specified in such notice. Manner ofRedemption. Whenever provision is made in the Indenture for the redemption of less than all of the 2002 Bonds, the Agency in its discretion shall determine the maturities to be redeemed by written notice to the Trustee and the Trustee shall select the 2002 Bonds within a maturity to be redeemed by lot in any manner which the Trustee, in its sole discretion, deems appropriate. Book-Entry and DTC The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the 2002 Bonds. The 2002 Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered Bond certificate will be issued for each maturity of the 2002 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. See APPENDIX H - "BOOK-ENTRY SYSTEM." So long as Cede & Co. is the registered Owner of the 2002 Bonds, references in this Official Statement to the holders or owners or registered Owners or Owners of the 2002 Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners of the 2002 Bonds. Discontinnanee of DTC Services In the event that (a) DTC determines not to continue to act as securities depository for the 2002 Bonds, or (b) the Agency determines that DTC shall no longer act and delivers a written certificate to the Trustee to that effect, then the Agency will discontinue the Book-Entry System with DTC for the 2002 Bonds. If the Agency determines to replace DTC with another qualified securities depository, the Agency will prepare or direct the preparation of a new single separate, fully registered Bond for each maturity of the 2002 Bonds registered in the name of such successor or substitute securities depository as are not inconsistent with the terms of the Indenture. If the Agency fails to identify another qualified securities depository to replace the incumbent securities depository for the 2002 Bonds, then the 2002 Bonds shall no longer be restricted to being registered in the 2002 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 2002 Bonds shall designate. 9 In the event that the Book-Entry System is discontinued, the following provisions would also apply: (i) the 2002 Bonds will be made available in physical form, (ii) principal of, and redemption premiums if any, on the 2002 Bonds will be payable upon surrender thereof at the trust office of the Trustee identified in the Indenture, and (iii) the 2002 Bonds will be transferable and exchangeable as provided in the Indenture. SECURITY FOR THE 2002 BONDS Tax Increment Revenues Tax Allocations. The Redevelopment Law provides a means for financing redevelopment projects based upon an allocation of taxes collected within a project area. The taxable valuation ora project area last equalized prior to adoption of the redevelopment plan, or base roll, is established in the base year. Thereafter, except for any period during which the taxable valuation drops below the base year level, the taxing bodies receive the taxes produced by the levy of the then-current tax rate upon the base roll. Taxes collected upon any increase in taxable valuation over the base roll (with the exception of taxes derived from increases in the tax rate imposed by taxing agencies to support new bonded indebtedness) are allocated to the redevelopment agency and may be pledged to the repayment of any indebtedness incurred in financing or refinancing redevelopment. Redevelopment agencies themselves have no authority to levy property taxes and must look exclusively to such allocation of taxes. Currently, such taxes are collected by the County and paid to the affected entities. As provided in the Redevelopment Plan and pursuant to Article 6 of Chapter 6 of the Redevelopment Law and Section 16 of Article XVI of the State Constitution, taxes levied upon taxable property in the project area each year by or for the benefit of the State, cities, counties, districts or other public corporations (collectively, the "Taxing Agencies"), for fiscal years beginning after the effective date of the respective redevelopment plan, will be divided as follows: (1) To taxing agencies: The portion equal to the amount of those taxes which would have been produced by the current tax rate, applied to the taxable valuation of such property in the redevelopment project area as last equalized prior to the establishment of the redevelopment project, or base roll, is paid into the funds of those respective taxing agencies as taxes by or for said taxing agencies; and (2) To the Agency: The portion of said levied taxes each year in excess of the amount referred to in (1) above is allocated to, and when collected, is paid into the Special Fund of the Agency; provided that the portion of the taxes identified in (1) above which are attributable to a tax rate levied by a taxing agency to pay indebtedness approved by the voters of that taxing agency on or after January 1, 1989, shall be allocated to, and when collected shall be paid into, the fund of such taxing agency. Such excess is referred to as "Tax Increment Revenues." The Agency has entered into various pass-through agreements and other contractual obligations whereby it has committed portions of the taxes that are allocated to the Agency as described in the preceding paragraph (2). The Tax Increment Revenues pledged to the payment of the Bonds under the Indenture specifically exclude the taxes so committed, and such amounts will not be available to make payments on the Bonds. See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" for a discussion of such agreements and other obligations of the Agency, and "SECURITY FORTHE 2002 BONDS-Pledge of Tax Increment Revenues" for the specific exclusions from the taxes pledged by the Agency under the Indenture to the repayment of the Bonds. Housing Set-Aside Amounts. The Redevelopment Law requires generally that, unless a specified finding is made, redevelopment agencies set aside 20% of all tax increment revenues (as described above) derived from redevelopment project areas into a low and moderate income housing fund (the "Low and Moderate Income Housing Fund"), to be used for the purpose of increasing, improving and/or preserving the supply of low and moderate income housing. Sections 33334.2 and 33334.6 of the Redevelopment Law dictate the low and moderate income housing set-aside requirement for the redevelopment project. See "LIMITATIONS ON TAX INCREMENT REVENUES - Low and Moderate Income Housing" herein. The pledge of Tax Increment Revenues under the Indenture does not include any portion of the Tax Increment 10 Revenues arising from the Redevelopment Plan that is required to be deposited by the Agency to the Low and Moderate Income Housing Fund. Pledge of Tax Increment Revenues Pursuant to the Indenture, all right, title and interest of thc Agency in Tax Increment Revenues paid to the Agency under the California Constitution, the Redevelopment Law and other applicable laws, are assigned and pledged to secure the payment of principal of and interest on the Bonds. The Indenture defines the term Tax Increment Revenues to mean all taxes annually allocated and paid to the Agency with respect to the Project Area following the Closing Date pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Redevelopment Law and Section 16 of Article XVI of the Constitution of the State including all payments, subventions and reimbursements (if any) to the Agency specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations; but excluding (a) amounts of such taxes required to be deposited into the Low and Moderate Income Housing Fund of the Agency in any Fiscal Year pursuant to Section 33334.3 of the Redevelopment Law to the extent not eligible under the Redevelopment Law for the payment of debt service on the Bonds, (b) all amounts of such taxes required to be paid by the Agency pursuant to any Pass-Through Agreement (to the extent that the payments thereunder are not subordinated to the Agency's obligation to repay the Bonds), and (c) the Business Inventory Tax Subvention. See "LIMITATIONS ON TAX INCREMENT REVENUES- Pass-Through Agreements; Other Contractual Obligations" herein for a discussion of the contractual and other obligations of the Agency giving rise to the exclusions described in the preceding clause (b). See also "LIMITATIONS ON TAX INCREMENT REVENUES - Redevelopment Plan Limitations Under AB 1290" herein for certain other constraints on the availability of Tax Increment Revenues to pay debt service on the Bonds. Except as may be otherwise provided in any Supplemental Indenture, the Agency is not obligated to transfer to the Trustee for deposit in the Special Fund in any Bond Year an amount of Tax Increment Revenues which, together with other available amounts in the Special Fund, exceeds the amounts required in such Bond Year pursuant to the Indenture. After the amount on deposit in the Special Fund equals the aggregate amount required to be deposited into the Interest Account, the Principal Account, the Sinking Account and the Reserve Account in such Bond Year pursuant to the Indenture, all additional Tax Increment Revenues received during such Bond Year shall be released from the pledge and lien of the Indenture and may be used for any lawful purpose of the Agency. Neither the Agency or the Authority has independent power to levy and collect property taxes, and any property tax limitation, legislative measure, voter initiative or provision of additional sources of income to taxing agencies having the effect of reducing the property tax rate or collections, could reduce the amount of Tax Increment Revenues that wouM otherwise be available to pay the principal of and interest on, the Bonds. Likewise, broadened property tax exemptions could have a similar effect. See "RISK FACTORS" herein. Limited Obligations THE PRINCIFAL OF AND INTEREST AND PREMIUM, IF ANY, ON THE BONDS ARE PAYABLE SOLELY FROM TAX INCREMENT REVENUES AND FROM AMOUNTS 1N CERTAIN FUND S AND ACCOUNTS PLEDGED THEREFORE UNDER AND PURSUANT TO THE INDENTURE. THE BONDS ARE NOT A DEBT OF THE CITY, OR THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE (OTHER THAN THE AGENCY TO THE LIMI'I'ED EXTENT SET FORTH IN THE INDENTURE), AND NEITHER THE CITY NOR THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS (OTHER THAN THE AGENCY), IS LIABLE THEREFOR. THE BONDS DO NOT CONSTITUTE AN INDEBTEDNESS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMIT OR RESTRICTION. NEITHER THE MEMBERS OF THE AGENCY NOR ANY PERSON RESPONSIBLE FOR THE EXECUTION OF THE BONDS IS LIABLE PERSONALLY FOR THE BONDS BY REASON OF THE ISSUANCE THEREOF. 11 Application of Tax Increment Revenues Under the Indenture there is established a special fund known as thc "Special Fund," which is held by the Agency. The Agency is required under the Indenture to transfer all of the Tax Increment Revenues received in any Bond Year (August 2 to August 1 of each year) to the Special Fund promptly upon receipt thereof by thc Agency; provided, that the Agency will not be obligated to deposit in the Special Fund in any Bond Year an amount of Tax Increment Revenues which, together with other available amounts then in the Special Fund, exceeds the amounts required to bc transferred to the Trustee for deposit in the Interest Account, Principal Account, Sinking Account, Reserve Account and the Redemption Account in such Bond Year as described below. After the amount on deposit in the Special Fund equals thc aggregate amount required to be deposited into the Interest Account, the Principal Account, the Sinking Account, the Reserve Account and the Redemption Account in such Bond Year as described below, all additional Tax Increment Revenues received during such Bond Year will be released from the pledge and lien of the Indenture and may be used for any lawful purpose of the Agency. Prior to the payment in full of principal of and interest and redemption premium (if any) on the Bonds and the payment in full of all other amounts payable under the Indenture and under any Parity Debt instrument, any resolution, indenture of trust, trust agreement or other instrument authorizing the issuance and/or execution and delivery of any Parity Debt (collectively, a "Parity Debt Instrument"), the Agency will not have any beneficial right or interest in the moneys on deposit in the Special Fund, except only as provided in the Indenture and in any Parity Debt Instrument, and such moneys will be used and applied as set forth in the Indenture and in any Parity Debt Instrument. Under the Indenture there is established a trust fund known as the "Debt Service Fund," which is held by the Trustee in trust. Moneys in the Special Fund are required to be transferred by the Agency to the Trustee in the following amounts, at the following times, for deposit by the Trustee in the following respective accounts within the Debt Service Fund, which are held by the Trustee, and in the following order of priority: Interest Account. On or before each date on which interest is payable on the Bonds, the Agency will withdraw from the Special Fund and transfer to the Trustee for deposit in the Interest Account an amount which, when added to the amount then on deposit in the Interest Account, will be equal to the aggregate amount of the interest becoming due and payable on the Outstanding Bonds on such Interest Payment Date. All moneys in the Interest Account are required to be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it becomes due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity pursuant to the Indenture). Principal Account. On or before each date on which principal of the Bonds becomes due and payable at maturity, the Agency will withdraw from the Special Fund and transfer to the Trustee for deposit in the Principal Account an amount which, when added to the amount then on deposit in the Principal Account, will be equal to the amount of the principal coming due and payable on such date on the Outstanding Bonds. All moneys in the Principal Account are required to be used and withdrawn by the Trustee solely for the purpose of paying the principal on the Bonds upon the maturity thereof. Sinking Account. on or before each date on which any Outstanding Term Bonds are subject to mandatory sinking account redemption, the Agency will withdraw from the Special Fund and transfer to the Trustee for deposit in the Sinking Account an amount which, when added to the amount then contained in the Sinking Account, will be equal to the aggregate principal amount of the Term Bonds subject to mandatory Sinking Account redemption on such date. All moneys on deposit in the Sinking Account are required to be used and withdrawn by the Trustee for the sole purpose of redeeming or purchasing (in lieu of redemption) Term Bonds. Reserve Account. In the event that the amount on deposit in the Reserve Account at any time becomes less than the Reserve Requirement, the Trustee upon receipt of actual knowledge will promptly notify the Agency of such fact. Promptly upon receipt of any such notice, the Agency is obligated to transfer to the Trustee from the Special Fund un amount sufficient to maintain the Reserve Requirement on deposit in the Reserve Account. Amounts in the Reserve Account shall be 12 used and withdrawn by the Trustee for the purpose of making transfers to the Interest Account, the Principal Account and the Sinking Account, in such order of priority, on any date which the principal of or interest on the Bonds becomes due and payable in the event of any deficiency at any time in any of such accounts on or before each Interest Payment Date or at any time for the retirement of all the Bonds then Outstanding. So long as the Agency is not in default under the Indenture, any amount in the Reserve Account in excess of the Reserve Requirement will be withdrawn by the Trustee on or before each Interest Payment Date and deposited in the Interest Account on or before each Interest Payment Date. The Agency reserves the right in the Indenture to substitute, at any time and from time to time, a Qualified Reserve Account Credit Instrument, in lieu of or in substitution for or in place of all or any portion of the moneys then constituting the Reserve Requirement, under the terms of which the Trustee is unconditionally entitled to draw amounts when required for the purposes of the Indenture. Upon deposit by the Agency with the Trustee of any such Qualified Reserve Account Credit Instrument, the Trustee will withdraw from the Reserve Account and transfer to the Agency free and clear of the lien of the Indenture moneys in an amount equal to the maximum limits or principal, as applicable, of such Qualified Reserve Account Credit Instrument. "Qualified Reserve Account Credit Instrument" is defined in the Indenture to mean an irrevocable standby or direct-pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Trustee, provided that all of the following requirements are met: (a) the long-term credit rating or claims paying ability of such bank or insurance company is in one of the three highest rating categories by S&P; (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 the Indenture; and (d) the Trustee is authorized pursuant to the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Interest Account, the Principal Account or the Sinking Account for the purpose of making payments required pursuant to the Indenture. Redemption Account. On or before each date on which Bonds are to be redeemed pursuant to optional redemption, the Agency wilt withdraw from the Special Fund and transfer to the Trustee for deposit in the Redemption Account an amount required to pay the principal of and premium, if any, on the Bonds to be redeemed on such date, taking into account any funds then on deposit in the Redemption Account. All moneys in the Redemption Account are required to be used and withdrawn by the Trustee solely for the purpose of paying the principal of and premium, if any, on the Bonds to be redeemed pursuant to optional redemption on the respective dates set for such redemption. Reserve Account Pursuant to the Indenture, a reserve account (the "Reserve Account") has been established and is held by the Trustee in trust for the benefit of the Agency and the registered Owners of the Bonds. The amount on deposit in the Reserve Account is required to be maintained at an amount equal to the Reserve Requirement. The term "Reserve Requirement" means, as of the date of calculation, an amount equal to the lesser of Maximum Annual Debt Service, one hundred twenty-five percent of average Annual Debt Service or ten percent (10%) of the initial principal amount of the Bonds. So long as the Reserve Requirement shall at any time be maintained in the Reserve Account in the form of a combination of cash [or cash equivalent securities] and a Qualified Reserve Account Credit Instrument, the Trustee shall apply the amount of such cash to make any payment required to be made from the Reserve Account before the Trustee shall draw any moneys under the Qualified Reserve Account Credit Instrument for such purpose. In the event that the Trustee shall at any time draw funds under the Qualified Reserve Account Credit Instrument to make any payment then required to be made from the Reserve Account, the Tax Increment Revenues thereafter received by the Trustee, to the extent remaining after making the other deposits (if any) then required to be made to the Interest Account, Principal Account and Sinking Account pursuant to the Special Fund provisions of the Indenture, shall be used to reinstate the Qualified Reserve Account Credit Instrument. 13 Teeter Plan The Agency has been placed on the County's "Teeter Plan," which stabilizes property tax payments at 100% of anticipated receipts. Consequently, delinquent property taxes do not impact the Agency's tax increment revenues. The Treasurer-Tax Collector remits tax increment revenues to the Agency in periodic payments each fiscal year. If any tax or assessment which was dis~buted to a Teeter Plan participant is subsequently changed by correction, cancellation or refund, a pro rata adjustment for the amount of the change is made on the records of the treasurer and auditor of the county. Such adjustment for a decrease in the tax or assessment is treated by the County as an interest-free offset against future advances of tax levies under the Teeter Plan. To the extent that the County's Teeter Plan continues in existence and is can-ied out as adopted, the County's Teeter Plan may help protect the Owners of the Bonds from the risk of delinquencies in ad valorem taxes. Parity Debt Pursuant to the Indenture, in addition to the 2002 Bonds, the Agency may issue or incur Parity Debt payable from Tax Increment Revenues on a parity with the Bonds in such principal amount as will be determined by the Agency. The Agency may issue or incur any such Parity Debt subject to the following specific conditions: (a) No Event of Default, as defined in the Indenture, shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in the Indenture. (b) Subject to paragraph (d) below, the Tax Increment Revenues for the then current Fiscal Year (based on the assessed valuation of property in the Project Area as evidenced in a written document from an appropriate official of the County) plus at the option of the Agency the Additional Allowance, shall be at least equal to one hundred thirty percent (130%) of the Maximum Annual Debt Service on the Bonds and such new Parity Debt. (c) Subject to paragraph (d) below, the issuance of such Parity Debt shall not cause the Agency to exceed any applicable Plan Limitations. Without limiting the generality of the foregoing, the Agency shall not issue or execute and deliver any Parity Debt in the event and to the extent that either (i) the sum of the aggregate amount of debt service on all outstanding obligations of the Agency payable from Tax Increment Revenues, including such Parity Debt, exceeds the aggregate amount of Tax Increment Revenues which are eligible to be allocated and paid to the Agency while such obligations remain outstanding, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Parity Debt, exceeds any applicable limit in the Redevelopment Plan on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at any one time. (d) In computing the Maximum Annual Debt Service on the Bonds for purposes of paragraph (b) above, and the debt service for purposes of paragraph (c) above, if interest on any Bonds is payable at a variable rate or is otherwise incapable of determination, (A) if the Agency has entered into a variable to fixed swap arrangement with respect to such Bonds the term of which extends for the term of such Bonds and payments by the counterparty on the swap arrangement are guaranteed or insured by an entity whose unsecured debt obligations are rated in the highest rating category by S&P, the maximum annual debt service due by the Agency under the swap arrangement shall be used rather than the maximum annual debt service on such Bonds, or (B) the Bonds shall be assumed to bear interest at a fixed rate equal to the average of the daily interest rate on such Bonds during the three year period preceding the first day of the month in which the determination is made (and, if such Bonds have not been outstanding for the entire 3 year period, for the portion of such time period such Bonds were not outstanding, the interest rate on a debt instrument or similar credit quality and maturity as determined by an Independent Redevelopment Consultant). 14 (e) The related Parity Debt Instrument shall provide that: (i) Interest on such Parity Debt shall be payable on February 1 and August 1 in each year in which interest is payable on such Parity Debt except the first twelve month period, during which interest may be payable on any February 1 or August 1 and provided that there shall be no requirement that such Parity Debt pay interest on a current basis; (ii) The principal of such Parity Debt shall be payable on August 1 in any year in which principal is payable; and (iii) Money (and/or a Qualified Reserve Account Credit Instrument) shall be deposited in the Reserve Account in an amount such that the amount in the Reserve Account is equal to the Reserve Requirement in effect immediately following the issuance of the Parity Debt. (f) The Agency shall deliver to the Trustee a Certificate of the Agency certifying that the conditions precedent to the issuance of such Parity Debt set forth in subsections (a), (b), (c) and (e) above have been satisfied. "Additional Allowance" is defined under the Indenture as the sum of the following: (a) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to either (i) construction which has been completed but has not yet been reflected on the tax roll, or (ii) transfer of ownership or any other interest in real property, which is not then reflected on the tax rolls; and (b) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to inflation at an assumed annual inflation rate equal to the lesser of(i) the annual rate of inflation for the preceding twelve-month period for which figares are available or (ii) two percent (2%), but only if the rate of inflation had increased by at least two percent (2%) in each of the preceding three Fiscal Years; and (c) an amount equal to the estimated earnings on amounts in the Reserve Account in the next succeeding Fiscal Year based upon the amount that is expected to be on deposit in the Reserve Account following the issuance of the then proposed Parity Debt (not to exceed the amount of the Reserve Requirement) and an interest rate equal to the lesser of the rate at which amounts in the Reserve Account are then invested or five percent (5%) per annum. For purposes of such definition, the term "increases in the assessed valuation" means the amount by which the assessed valuation of taxable property in the Project Area in the next succeeding Fiscal Year is estimated to exceed the assessed valuation of taxable property in the Project Area (as reported by the County Auditor-Controller) in the Fiscal Year in which such calculation is made. The Agency may issue or incur Refunding Debt in such principal amount as shall be determined by the Agency so long as the conditions set forth in subsections (a), (c) and (e) above are met, and the Agency delivers to the Trustee a Certificate of the Agency certifying that such conditions precedent to the issuance of such Refunding Debt set forth in subsections (a), (c) and (e) above have been met and such Refunding Debt is otherwise in accordance with the definition of Refunding Debt. "Refunding Debt" is defined in the Indenture to mean any loan, bond, note, advance or indebtedness the proceeds thereof are used to refund all or a portion of any Parity Debt (and to pay costs of issuance of and fund a reserve account for such Refunding Debt), and the debt service due on such Refunding Debt in any Bond Year in which the Refunding Debt is Outstanding is not greater than the debt service due in such Bond Year on the portion of the Parity Debt refunded with the proceeds of such Refunding Debt. THE MUNICIPAL BOND INSURANCE POLICY The information relating to (" ") contained below and in Appendix G has been furnished by . No representation is made herein by the Agency or the Underwriter as to the accuracy or the adequacy of such information or as to the absence of material adverse changes in such information subsequent to the date hereof. 15 Payment Pursuant to Municipal Bond Insurance Policy [TO COME] .[Insurer] [TO COME] RISK FACTORS The following information should be considered by prospective investors in evaluating the 2002 Bonds. However, the following does notpurport to be an exhaustive listing of risks and other considerations which may be relevant to investing in the 2002 Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks. Bonds Are Limited Obligations and Not General Obligations The 2002 Bonds and the interest thereon are limited obligations of the Agency and do not constitute a general obligation of the Agency. See "SECURITY FOR THE 2002 BONDS" herein. No Owner of the 2002 Bonds may compel exercise of the taxing power of the State of California or any of its political subdivisions or agencies to pay the principal of or premium, if any, or interest due on the 2002 Bonds. Tax Increment Revenues The Tax Increment Revenues allocated to the Agency, which constitute the primary security for the Bonds, are determined by the incremental assessed value of taxable property in the Project Area, the current rate or rates at which property in the Project Area is taxed and the percentage of taxes collected in the Project Area. Several types of events which are beyond the control of the Agency could occur and cause a reduction in available Tax Increment Revenues. A reduction of taxable assessed values of property in the Project Area caused by economic or other factors beyond the Agency's control could occur (such as successful appeals by the property owner for a reduction in a property's assessed value, a reduction of the general inflationary rate, a reduction in transfers of property, construction activity or other events that permit reassessment of property at lower values, or the destruction of property caused by natural or other disasters), and have occurred in recent years thereby causing a reduction in Tax Increment Revenues. Such a reduction in Tax Increment Revenues could have an adverse impact on the Agency's ability to make timely payment of principal of and interest on the Bonds. As described in greater detail under "LIMITATIONS ON TAX INCREMENT REVENUES - Property Tax Rate Limitations - Article XII~A," Article XIIIA of the California Constitution provides that the full cash value base of real property used in determining taxable value may be adjusted from year to year to reflect the inflation rate, not to exceed a two percent increase for any given year; or may be reduced to reflect a reduction in the consumer price index, comparable local data or any reduction in the event of declining property value caused by damage, destruction or other factors (as described above). Such measure is computed on a calendar year basis. Any resulting reduction in the full cash value over the term of the Bonds could reduce Tax Increment Revenues securing the Bonds. See "LIMITATIONS ON TAX INCREMENT REVENUES - Property Tax Rate Limitations - Article XIIIA." Historically, some property owners within the Project Area have appealed for reductions in the assessed value of their properties. Reductions in the assessed value of the secured property in the Project Area in recent years as shown in the summaries of historical assessed valuation set forth herein can be attributed in part to such appeals and reductions in property values generally. Tax Increment Revenues may be reduced from current levels as a result of such appeals and reductions in property values generally. See "THE REDEVELOPMENT PLAN - Appeals of Assessed Values" herein. In addition to the other existing limitations on Tax Increment Revenues described below under "LIMITATIONS ON TAX INCREMENT REVENUES," the California electorate or Legislature could adopt 16 a constitutional or legislative property tax decrease with the effect of reducing Tax Increment Revenues payable to the Agency. There is no assurance that the California electorate or Legislature will not at some future time approve additional limitations that could reduce the Tax Increment Revenues and adversely affect the security of the Bonds. The Agency has no power to levy and collect property taxes. Any substantial delinquencies in the payment of property taxes by property owners in the Project Area could have an adverse effect on the Agency's ability to make timely debt service payments on the Bonds. Tax Increment Revenues allocated to the Agency are distributed throughout the year in installments, with the first installment distributed in November and the last installment distributed in August of the succeeding fiscal year. The payments are adjusted to reflect actual collections. See "LIMITATIONS ON TAX INCREMENT REVENUES- Property Tax Collection Procedures" herein. Estimated Tax Increment Revenues The Agency has projected future Tax Increment Revenues. The Agency believes these assumptions to be reasonable, but to the extent the assessed valuation, the tax rates or the percentage of taxes collected are less than the Agency's assumptions, the Tax Increment Revenues available to pay debt service on the Bonds would be reduced. See "COVERAGE ANALYSIS" herein. No representations are being made as to the future Tax Increment Revenues, or as to whether the estimated Tax Increment Revenues as shown under the heading "COVERAGE ANALYSIS" will be realized. Educational Revenue Augmentation Fund The State budget for fiscal year 1993-94 transferred $2.6 billion to school districts from cities, counties and other local governments, including redevelopment agencies. As part of the budget's transfer of moneys to school districts, the State Legislature required redevelopment agencies to transfer approximately $65 million to the Educational Revenue Augmentation Fund in both fiscal years 1993-94 and 1994-95. Such a transfer has not been a part of the State budget since fiscal year 1994-95. However, there can be no assurance that the Legislature will not require similar or increased deposits in future years to deal with budget deficits. Economic Concentration A significant portion of the Project Area assessed value is related to commercial and industrial property. Consequently, property values in the Project Area are strongly influenced by the vitality of the regional economy and the resulting demand for commercial and industrial space. To the extent that the County economy were to decline, resulting in diminished demand for commemial and industrial space, such a decline could negatively impact the Project Area assessed values and the receipt of Tax Increment Revenues. Concentration of Ownership and Management The largest property taxpayer in the Project Area accounts for approximately 17.94% of the assessed value of the Project Area, and the ten largest property taxpayers account for approximately 54.74% of incremental assessed value in the Project Area. Concentration of ownership presents a risk in that if one or more of the largest property owners were to default on their taxes or were to successfully appeal the tax assessments on property within the Project Area, a substantial decline in Tax Increment Revenues would result. The largest property owners and their ability to pay property taxes could be adversely affected by various factom such as recession, a crisis in the supply and pricing of electricity and natural gas such as the State experienced in 2000 and 2001 or the economic effects of the unprecedented September 11, 2001 terrorist attacks on the World Trade Center and the Pentagon and the response of the United States government. [Property taxes for all ten largest assessed are current.] Eight of the ten largest property taxpayers filed assessment appeals that are currently pending. See "THE REDEVELOPMENT PLAN - Assessed Valuation" and "APPENDIX B - FISCAL CONSULTANT' S REPORT- IV - Tax Allocation and Disbursement - F. - Assessment Appeals"herein. 17 Future Land Use Regulations and Growth Control Initiatives [REVIEW AMOUNT OF VACANT LAND IN THE PROJECT AREA AND POSSIBLE EFFECT ON TAX INCR.EMENT GROWTH] In the past, citizens of a number of local communities in Southern California have placed measures on the ballot designed to limit the issuance of building permits or impose other restrictions to control the rate of future growth in those areas. It is possible that future initiatives could be enacted, could be applicable to the City and have a negative impact on the ability of developers in the Project Area to complete any existing or proposed development. Bondowners should assume that any event that significantly affects the ability to develop land in the City could cause the land values within the Project Area to decrease substantially and could affect the willingness and ability of the owners of land within the Project Area to pay property taxes when due. There can be no assurance that land development within the City will not be adversely affected by fnturc governmental policies, including but not limited to, government policies to restrict or control development. Under current California law, it is generally accepted that proposed development is not exempt from future land use regulations until building permits have been issued and substantial work has been performed and substantial liabilities have been incurred in good faith reliance on the permits prior to the adoption of such regulations. Bankruptcy and Foreclosure On July 30, 1992 the United States court of Appeals for the Ninth Circuit issued an opinion in a bankruptcy case entitled In re Glasply Marine Industries holding that ad valorem property taxes levied by a county in the State of Washington after the date that the proper~ owner filed a petition for bankruptcy would not be entitled to priority over the claims of a secured creditor with a prior lien on the property. Similar results were reached by several circuit courts in other circuits. Subsequently, however, section 362(b)(18) of the Bankruptcy Code was enacted, effectively overturning this line of decisions and providing that local governments mayrely on statutory property tax liens to secure payment of property taxes after the ftling of a bankruptcy petition. Teeter Plan Termination The County implemented its Teeter Plan, as an alternate procedure for the dis~bution of certain property tax and assessment levies on the secured roll. Pursuant to its Teeter Plan, the County has elected to provide local agencies and taxing areas, including the Agency, with full tax and assessment levies instead of actual tax and assessment collections. In return the County is entitled to retain all delinquent tax and assessment payments, penalties and interest. Thus, the County's Teeter Plan may help protect Owners of thc Bonds from the risk of delinquencies in the payment of ad valorem taxes. However, the County is entitled, and under certain circumstances could be required, to terminate its Teeter Plan with respect to all or part of the local agencies and taxing areas covered thereby. A termination of the Teeter Plan with respect to the Agency would eliminate such protection from delinquent ad valorem taxes. See "SECURITY FOR THE 2002 BONDS - Teeter Plan." Seismic Factors and Flooding The occurrence of severe seismic activity and/or flooding in the Project A~ea could result in substantial damage to property located in the Project Area, and could lead to successful appeals for reduction of assessed values of such propert~y. Such a reduction could result in a decrease in Tax Increment Revenue collected by thc Agency. [Portions of thc Project Area are] within the 100-year flood plan. The Project Area is located in an active seismic region. The Elsinore, San Jacinto, Wildomar and San Andreas Fault Zones are all in the vicinity of the City. The proximity to these Faults makes the Project Area subject to the hazards associated with groundshaking and soil instability. Hazardous Substances An environmental condition that may result in the reduction in the assessed value of parcels would be the discovery ora hazardous substance that would limit thc beneficial use of a property witl~n the Project Area. In general, the owners and operators ora property may be required by law to remedy conditions of the 18 property relating to releases or threatened releases of hazardous substances. The owner may be required to remedy a hazardous substance condition of property whether or not the owner or operator has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the property within the Project Area be affected by a hazardous substance would be to reduce the marketability and value of the property by the costs of remedying the condition. Recent Litigation Regarding Increase in Assessed Valuation On November 2, 2001, the Orange County, California Superior Court issued a Minute Order in the case of County of Orange v. County of orange County Assessment Appeals Board No. 3. The case involved the assessed value of a property that exceeded the prior year's assessed value by more than 2%. The increase of a property's assessed value by more than 2% is a common practice among California assessors when the prior year value of the property is less than the base year value of the property (the value assigned upon change of ownership or new construction) and the current year, market value of property is equal to or higher than the computed adjusted base year value for the current year. Such instances occur when the prior year value of the property was determined by an appeal or assessor initiated reduction and the condition causing reduction (e.g., recession in the real estate market) has ceased to influence the value of property. The court ruled that the Califomia Constitution and the California Revenue and Taxation Code limit the year to year change in value of property to 2% except in situations described in law but not limited to the instances mentioned above. The court also found that the California Constitution does not authorize a tempormy decline in the base value of property that can be restored at a rate higher than 2%. At this time, the Orange County Superior Court is considering possible class certification for a challenge to the Orange County assessor's practice. It is unclear whether, or to what extent, this potential class may affect assessments outside of orange County. The Agency is unable to predict the effect on Tax Increment Revenues if the ruling described above is ultimately determined to have applicability to the County and the Tax Increment Revenues allocated to the Agency. The Fiscal Consultant has not made any adjustment in its projections of Tax Increment Revenues shown in the text of this Official Statement and in Appendix D by reason of the foregoing litigation. Tax Increment Revenues could be reduced, which in turn could impair the ability of the Agency to make payments on the Bonds when due if the above described litigation is upheld and any similar litigation is brought with respect to the Project Area. School District Litigation The Santa Ana Unified School District (the "School District") filed litigation against the Orange County Development Agency (the "OCDA") regarding the application of provisions of the California Redevelopment Law to certain pass-through obligations of the OCDA to the School District. The School District argued to the trial court that it could elect to receive its share of tax increment revenues from an OCDA redevelopment project area by means of certain filings made after the applicable project area had been formed. The OCDA argued that the applicable filings needed to be made before the redevelopment plan for the project area was adopted. The trial court ruled in favor of the School District and the Court of Appeals of the State of California affirmed the trial court decision. The California Supreme Court denied review of the decision. It is believed that this decision will have no affect on the Agency in that all school districts within the Project Area have entered into negotiated tax sharing agreements with the Agency. Loss of Tax Exemption In order to maintain the exclusion from gross income for federal income tax purposes of the interest on the 2002 Bonds, the Agency has covenanted in the Indenture to comply with each applicable requirement of the Internal Revenue Code of 1986, as amended. The interest on the 2002 Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance of the 2002 Bonds, as a result of acts or omissions of the Agency in violation of covenants in the Indenture. Should such an event of taxability occur, the 2002 Bonds may not be subject to acceleration or redemption and no increase in interest rates will occur, and the 2002 Bonds will remain Outstanding until maturity or until redeemed under on of the redemption provisions contained in the Indenture. See "TAX MATTERS" herein. 19 Assumptions and Projections Any reduction in Tax Increment Revenues, whether for any of the foregoing reasons or any other reason, could have an adverse effect on the Agency's ability to make timely payments of principal of, premium, if any, and interest on the 2002 Bonds, which are secured by such Tax Increment Revenues. To estimate the total Tax Increment Revenues available to pay debt service on the 2002 Bonds, the Agency has made certain assumptions with regard to the assessed valuation in the Project Area and estimated increase in assessed valuation. See "COVERAGE ANALYSIS" for a discussion of the assumptions underlying the projections set forth herein with respect to Tax Increment Revenues. The Agency believes these assumptions to be reasonable, but to the extent that the assessed valuations and the change in assessed valuation differ from the Agency's assumptions, the total Tax Increment Revenues available will, in all likelihood, be different than those projected herein. See "COVERAGE ANALYSIS" herein. LIMITATIONS ON TAX INCREMENT REVENUES Property Tax Collection Procedure In California, property which is subject to ad valorem taxes is classi fled as "secured" or "unsecured." The secured classification includes property on which any property tax levied by the County becomes a lien on that property. A tax levied on unsecured property does not become a lien against the unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens on the secured property, regardless of the time of the creation of other private liens. Secured and unsecured property are entered on separate parts of the assessment roll maintained by the county assessor. The method of collecting delinquent taxes is substantially different for the two classifications of property. The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the county recorder's office, in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of the personal property, improvement or possessory interests belonging or assessed to the assessee. The exclusive means o f enforcing the payment of delinquent taxes with respect to property on the secured roll is the sale of property securing the taxes to the State for the amount of taxes which are delinquent. A 10 percent penalty is added to delinquent taxes which have been levied with respect to property on the secured roll. In addition, on or about June 30 of the fiscal year, property on the secured roll on which taxes are delinquent is declared in default by operation of law and declaration of the tax collector. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1-1/2 percent per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is subject to sale by the County tax collector. The valuation of property is determined as of the January 1 lien date as equalized in August of each year and equal installments of taxes levied upon secured property become delinquent on the following December 10 and April 10. Taxes on unsecured property are due January 1 and become delinquent August 31. Supplemental Assessments A bill enacted in 1983, SB 813 (Statutes of 1983, Chapter 498), provides for the supplemental assessment and taxation of property upon the occurrence of a change in ownership or completion of new construction. Previously, statutes enabled the assessment of such changes only as of the next January 1 tax lien date following the change and thus delayed the realization of increased property taxes from the new assessments for up to 14 months. As enacted, Chapter 498 provides increased revenue to redevelopment agencies to the extent that supplemental assessments of new construction or changes of ownership occur within the boundaries of redevelopment projects subsequent to the January 1 lien date. To the extent such supplemental assessments occur within the Project Area, Agency revenues may increase. 20 Tax Collector Fees SB 2557 (Chapter 466, Statutes of 1990) authorizes county auditors to determine property tax administration costs proportionately att~butable to local jurisdictions and to submit invoices to the jurisdictions for such costs. An estimated amount of such costs have been excluded in detern~inng the Tax Increment Revenues which are pledged to repay the 2002 Bonds. Unitary Property AB 454 (Statutes of 1987, Chapter 921) modifies the distribution of tax revenues derived from property assessed by the State Board of Equalization. Chapter 921 provides for the consolidation of all State- assessed property, except for non-operating, non-unitary and regulated railroad property, into a single tax rate area in each county. Chapter 921 further provides for a new method of establishing tax rates on State- assessed property and distribution of property tax revenues derived from State-assessed property to taxing jurisdictions within each county in accordance with a new formula. Railroads will continue to be assessed and revenues allocated to all tax rate areas where railroad property is sited. Chapter 921 provides redevelopment agencies with their appropriate share of revenue generated from the property assessed by the State Board of Equalization. Property Tax Rate Limitations - Article XlllA California voters, on June 6, 1978, approved an amendment (commonly known as Proposition 13) to the California Constitution. This amendment, which added Article XIIlA to the California Constitution, among other things affects the valuation of real property for the purpose of taxation in that it defines the full cash property value to mean "the county assessor's valuation of real property as shown on the 1975-76 tax bill under 'full cash value', or thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment." The full cash value may be adjusted annually to reflect inflation at a rate not to exceed 2 percent per year, a reduction in the consumer price index or comparable local data, or declining property value caused by damage, destruction or other factors including a general economic downturn. The amendment further limits the amount of any ad valorem tax on real property to one percent of the full cash value except that additional taxes may be levied to pay debt service on indebtedness approved by the voters prior to July 1, 1978, and bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978 by two-thirds of the votes cast by the voters voting on the proposition. In the general election held November 4, 1986, voters of the State of California approved two measures, Propositions 58 and 60, which further amend Article XIIIA. Proposition 58 amends Article XIlIA to provide that the terms "purchased" and "change of ownership," for purposes of determining full cash value of property under Article XIIIA, do not include the purchase or transfer of(l) real property between spouses and (2) the principal residence and the first $1,000,000 of other property between parents and children. Proposition 60 amends Article XIIIA to permit the Legislature to allow persons over age 55 who sell their residence to buy or build another of equal or lesser value within two years in the same county, and to transfer the old residence's assessed value to the new residence. Pursuant to Proposition 60, the Legislature has enacted legislation permitting counties to implement the provisions of Proposition 60. Challenges to ArticleXIIIA. On September 22, 1978, the California Supreme Court upheld the amendment over challenges on several state and federal constitutional grounds (Amador Valley Joint Union High School District v. State Board of Equalization). The Court reserved certain constitutional issues and the validity of legislation implementing the amendment for future determination in proper cases. Since 1978, several cases have been decided interpreting various provisions of Article XIIL~; however, none of them have questioned the ability of redevelopment agencies to use tax allocation financing. The United States Supreme Court upheld the validity of the assessment procedures of Article XIIIA in Nordlinger v. Hahn. The Agency cannot predict whether there will be any future challenges to California's present system of property tax assessment and cannot evaluate the ultimate effect on the Agency's receipt of Tax Increment Revenues should a future decision hold unconstitutional the method of assessing property. 21 Implementing Legislation. Legislation enacted by the California Legislature to implement Article )GILA provides that all taxable property is shown at full assessed value as described above. In conformity with this procedure, all taxable property value included in this Official Statement (except as noted) is shown at 100 percent of assessed value and all general tax rates reflect the $1 per $100 of taxable value. Tax rates for voter approved bonded indebtedness and pension liability are also applied to 100 percent of assessed value. Future assessed valuation growth allowed under Article XIIIA (new construction, change of ownership, 2 percent annual value growth) will be allocated on the basis of"situs" among the jurisdictions that serve the tax rate area within which the growth occurs, except for certain utility property assessed by the State Board of Equalization. Local agencies and school districts will share the growth of"base" revenue from the tax rate area. Each year's growth allocation becomes part of each agency's allocation the following year. The Agency is unable to predict the nature or magnitude of future revenue sources which may be provided by the State of California to replace lost property tax revenues. Article XllIA effectively prohibits the levying of any other ad valorem property tax above the I percent limit except for taxes to support indebtedness approved by the voters as described above. Article XIIIB of the California Constitution On November 6, 1979, California voters approved Proposition 4 which added Article XIllB to the California Constitution, subsequently amended several times. The principal effect of Article XIIIB is to limit the annual appropriations of the State and any city, county, school district, authority or other political subdivision of the State to the level of appropriations for the prior fiscal year, as adjusted for changes in the cost of living, population and services rendered by the government entity. The base years for establishing such appropriation limit is fiscal year 1986-87 and the limit is to be adjusted annually to reflect changes in population, cost of living and certain increases in the cost of services provided by these public agencies. Appropriations subject to Article xIm3 include generally the proceeds of taxes levied by the State or other entity of local government, exclusive of certain State subventions, refunds of taxes, benefit payments from retirement, unemployment insurance and disability insurance funds. Effective September 30, 1980, the Califomia Legislature added Section 33678 to the Health and Safety Code which provides that the allocation of taxes to a redevelopment agency for the purpose of paying principal of, or interest on, loans, advances, or indebtedness will not be deemed the receipt by the agency of proceeds of taxes levied by or on behalf of the agency within the meaning of Article XIIII~ or any statutory provision enacted in implementation thereof. The constitutionality of Section 33678 has been upheld by the Second and Fourth District Courts of Appeals in two decisions: Bell Redevelopment Agency v. Woosely and Brown v. Redevelopment Agency of the City of Santa Ana, which cases were not accepted for review by the Supreme Court. Pass-Through Agreements; Other Contractual Obligations Pass-Through Agreements. Pursuant to Section 33401(b) of the Redevelopment Law (as in effect prior to January 1, 1994), a redevelopment agency was authorized to enter into an agreement to pay tax increment revenues to any taxing agency that has territory located within a redevelopment project in an amount which in the agency's determination is appropriate to alleviate any financial burden or detriment caused by the redevelopment project. These agreements normally provide for a pass-through of tax increment revenue directly to the affected taxing agency, and, therefore, are commonly referred to as "pass- through" or "fiscal" agreements. As discussed earlier, the County originally adopted the Project Area. At the time of adoption, the County entered into a number of pass-through agreements (collectively, the "Pass-Through Agreements"). All of these agreements with school districts called for the districts to receive 29.62 percent of their shares of general levy tax increment revenue. All non-school district Pass-Through Agreements called for the taxing entity to receive 100 percent of its general levy tax increment revenue. These Pass-Through Agreements became obligations of the Agency at the time that the Project Area was adopted by the Agency. These agreements have a lien on Tax Increment Revenues that is superior to the lien for debt service on the 2002 Bonds. The agreements are summarized in the table below: 22 Taxing Entity 1% Share Pass Through Share Temecula Public Cemetery District 0.40% 100% Eastern Municipal Water District 10.05% 100% Riverside County Flood Control District 1.76% 100% Rancho California Water District 5.92% 100% Temecula Valley Unified School District 31.61% 29.62% Mt. San Jacinto Community College Districtm 3.60% 29.62% Riverside County Supt. of Schools(2) 10.53% 29.62% O) [No amounts are due under an Agreement with County Service Area 75. UPDATE/CONFIRM: County Service Area 75 has been dissolved.] (2) The tax share for the Riverside County Office of Education includez the Elsinore Elementary School Fund. At the time the Agency adopted the Project Area Redevelopment Plan, it entered into an agreement with the County on May 21, 1991. This agreement called for tax sharing payments to be made to the County General Fund, the County Structural Fire Department and the County Library Department. It also provided for a partial deferral of the payments to the County General Fund. The Agency and the County have entered into a County Pass-Through Agreement. The new agreement calls for the Agency to make tax-sharing payments to the County General Fund, Structural Fire Department and Library Department from general levy tax increment revenues net of the SB 2557 Administrative Fee. The General Fund share is 18.12 percent, the County Structural Fire Department share is 4.70 percent and the County Library Department share is 2.18 percent. In addition to the tax sharing payments, the agreement specifies that the Agency shall pay the County a total of $6 million from the proceeds of the 2002 Bonds as repayment of the County tax sharing payments deferred under the May 21, 1991 agreement. The Agency further agrees to contribute $5 million toward the acquisition of right of way for a project referred to as the Date/Cherry Interchange or if such acquisition is not completed within five years, an alternative regionally significant public improvement. Under the County Pass-Through Agreement, the Auditor Controller is responsible for calculating the amount of the tax sharing payments and allocating these payments to the various taxing entities. The County Pass-Through Agreement does not provide for subordination of the tax sharing payments to the County, Structure Fire Department or Library Department to debt service on the Bonds. To the extent that the Tax Increment Revenues remaining after satisfaction of the Agency's obligations under the Pass-Through Agreements described above are not sufficient to pay the scheduled debt service on the Bonds, there could be a default in the payment of debt service on the Bonds. Owner Participation Agreements. The Agency has entered into two Owner Participation Agreements that call for payments to be made to the Owner Participants and is negotiating the terms ora third Owner Participation Agreement. The first agreement is between the Agency and M & H Realty Partners IV L.P. This agreement was originally entered into by the Agency with Costco Wholesale Corporation on July 23, 1991 and amended on November 9, 1999. The agreement was further amended on March 21, 2000. Under the terms of this agreement, the Agency will provide assistance by paying an amount equivalent to the amount of sales taxes generated by the facility that exceed certain annual targets. The total amount of Agency assistance is limited to an aggregate total of $2.5 million and payments shall be made over a twelve- year period. The maximum payment in any year is limited to $300,000. The final payment to the owner is estimated to be paid in Fiscal Year 2003-04, at which time the $2.5 million shall have been paid. Payments under this agreement are subordinate to the pledge of Tax Increment Revenues to payment of the Bonds. The second agreement is between the Agency and the International Rectifier Corporation (IR) was entered into on December 9, 1997 and amended on December 15, 1998. This agreement calls for the Agency to pay for the construct/on of the IR facility. This facility was completed as of September 1997 and payments were to have begun in fiscal year 1998-99. Payments are to be made for a period often years and will be net 23 of tax sharing payments and the Housing Set-Aside Requirement. Certain milestones set forth in this Agreement were not met and as of Fiscal Year 2001-02 no payments are due by the Agency. [CONFIRM/UPDATE: Under the terms of the Agreement because the milestones have not been met, no payments will be owed in the future.] The Agency is negotiating the terms of an Owner Participation Agreement with Advanced Cardiovascular Systems, Inc. Upon satisfaction of conditions set forth in this Agreement, it is proposed that the Agency pay an amount equal m 50% of certain tax increment revenues received by the Agency. The Agreement makes no pledge to any funds of the Agency or the City, and in particular there is no pledge of Increment Revenues or a pledge of the City's general fund. Exclusion of Tax Increment Revenues for General Obligation Bonds Debt Service An initiative to amend the California Constitution entitled "Property Tax Increment Revenues Redevelopment Agencies" was approved by California voters at the November 8, 1988 general election. Under prior law, a redevelopment agency using tax increment revenue received additional property tax revenue whenever a local government increased its property tax rate to pay off its general obligation bonds. This initiative amended the California Constitution to allow the California Legislature to prohil~it redevelopment agencies from receiving any of the property tax revenues raised by increased property tax rates imposed by local govemments to make payments on their bonded indebtedness. The initiative only applies to tax rates levied to finance general obligation bonds approved by the voters on or after January 1, 1989. Any revenue reduction to redevelopment agencies would depend on the number and value of the general obligation bonds approved by voters in prior years, which tax rate will reduce due to increased valuation subject to the tax or the retirement of the indebtedness. Proposition 218 On November 5, 1996, California voters approved Proposition 218 - Voter Approval for Local Government Taxes - Limitation on Fees, Assessments, and Charges - Initiative Constitutional Amendment. Proposition 218 added Articles XIIIC and XIIID to the California Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property- related fees and charges. Tax Increment Revenues securing the Bonds are derived from property taxes which are outside the scope of taxes, assessments and property-related fees and charges which were limited by Proposition 218. Future Initiatives or Legislation Article XmA, Article XIIIB and certain other propositions affecting property tax levies were each adopted as measures which qualified for the ballot pursuant to California's initiative process and legislation described above was adopted by the California Legislature. From time to time other initiative measures or legislation could be adopted, further affecting Agency revenues or the Agency's ability to expend revenues. The nature and impact of these measures cannot be anticipated by the Authority or the Agency. Low and Moderate Income Housing Chapter 1337, Statutes of 1976, added Sections 33334.2 and 33334.3 to the Redevelopment Law requiring redevelopment agencies to set-aside 20 percent of all tax increment derived from redevelopment project areas adopted after December 31, 1976 in a low and moderate income housing fund. This low and moderate income housing requirement could be reduced or eliminated if a redevelopment agency finds that: (a) no need exists in the community to improve or increase the supply of low and moderate income housing; (b) that some stated pementage less than 20 percent of the tax increment is sufficient to meet the housing need; or (c) that other substantial efforts, including the obligation of funds from state, local and federal sources for low and moderate income housing of equivalent impact are being provided for in the community (the low and moderate income housing requirement may not be reduced pursuant to finding in this thkd clause after June 30, 1993). The Agency has historically, and intends to, annually set aside in its low and moderate income housing fund 20 percent of the gross tax increment revenues allocated to the Agency with respect to the 24 Project Area. The Tax Increment Revenues do not include tax increment set aside pursuant to the Agency's 20 percent low and moderate income housing set aside requirement. Redevelopment Plan Limitations Under AB 1290 The Redevelopment Plan contains various limitations on the Agency' s ability to incur indebtedness and to receive tax increment revenues. The date of existing limit on incurring debt is July 12, 2008, the plan termination date is July 12, 2028 and the debt repayment date is July 12, 2038. In addition, the City is a party to the 1991 Settlement Agreement (as defined below) which imposes additional limitations on the Agency's ability to incur indebtedness and to receive tax increment revenues. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Agency Powers" and" - Limitations Under 1991 Settlement Agreement" below. THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA Agency Members On July 12, 1988, the County prior to the incorporation of the City adopted the "County of Riverside Redevelopment Plan 1 -1988" by Ordinance No. 658. On December 1, 1989 the City was incorporated. All of the area within the County Redevelopment Plan was included within the boundaries of the City. The Agency was established on April 27, 1991, by the City Council with the adoption of Ordinance No. 91-08 pursuant to the Redevelopment Law. The five members of the City Council serve as governing body of the Agency, and exercise all rights, powers, duties and privileges of the Agency. The members of the governing body of the Agency are as follows: Member Term Expires Jeff Comerchero, Chairperson November, 2005 Michael S. Naggar, Vice Chairperson November, 2005 Albert "Sam" Pratt, Board Member November, 2003 Ron Roberts, Board Member November, 2005 Jeff Stone, Board Member November, 2003 Agency Administration The Agency is administered by certain staffof the City. The City is a general law city and operates according to' the Council/Manager form of government. The City Manager is appointed by the City Council to administer the City's staff and generally implement policies established by the City Council. Current City staff assigned to administer the Agency include Shawn Nelson, City Manager of the City and Executive Director of the Agency, Gary Thomhill, Community Development Director of the City, Genie Roberts, Finance Director of the City and Treasurer of the Agency, John Meyer, Redevelopment Director and Susan Jones, City Clerk and Secretary to the Agency. The Agency has an arrangement with the City for financial assistance and services, facilities and personnel support. As moneys become available, the Agency reimburses the City for all such services performed in amounts equal to a portion of the gross salary and employee fringe benefits for certain City employees utilized by the Agency plus other miscellaneous operating and equipment costs. The Redevelopment Law requires redevelopment agencies to have an independent financial audit conducted each year. The financial audit is also required to include an opinion of the Agency's compliance with laws, regulations and administrative requirements governing activities of the Agency. Moreland & Associates, Inc., Newport Beach, California, audited the financial statements of the Agency for the fiscal year that ended June 30, 2001, and rendered its financial opinion and compliance opinion with respect thereto, which are included in Appendix C attached hereto. 25 Agency Powers All powers of the Agency are vested in its governing body. Pursuant to the Redevelopment Law, the Agency may exercise broad governmental functions and authority to accomplish its purposes, including, but not limited to, the right of eminent domain, the right to issue bonds for authorized purposes and to expend their proceeds, and the right to acquire, sell, rehabilitate, develop, administer or lease property. The Agency may demolish buildings, clear land and cause to be constructed certain improvements, including streets, sidewalks, and utilities. The Agency may not construct or develop buildings, with the exception of public facilities and housing, but must sell or lease cleared property for construction and development in accordance with the Redevelopment Plan. Limitations Under 1991 Settlement Agreement Pursuant to a Settlement Agreement (the "1991 Settlement Agreement") entered on June 5, 1991, in the Superior Court of the State of California for the County, the Agency and the City, as amended in 1996, various additional limitations are placed on the Redevelopment Plan, including that subject to certain exceptions, no more than $150 million of tax increment revenues shall be allotted or paid to the Agency during the term of the Plan (excluding the Housing Set-Aside amounts and certain other amounts). Based on Agency records, the Agency has received approximately $66,146,805 of Tax Increment Revenues from its inception through 2000-01. The amount of revenue that is applicable to the 1991 Settlement Agreement limitation is approximately $14,663,928. The Agency, based on historical rates of growth in Tax Increment Revenues does not expect maximum cumulative tax revenue under the 1991 Settlement Agreement or the Redevelopment Plan to be realized during the life of the Redevelopment Plan. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Agency Powers." Outstanding Indebtedness of the Agency Certification of Agency Indebtedness. Pursuant to Section 33675 of the Redevelopment Law, on or before October I of each year an agency must file with the county auditor a statement of indebtedness certified by the chief fiscal officer of the agency for each redevelopment project that receives tax increment. The statement of indebtedness is required to contain the date on which any bonds were delivered, the principal amount, term, purpose and interest rate of bonds and the outstanding balance and amount due on bonds. Similar information must be given for each loan, advance or indebtedness that the agency has incurred or entered into to be payable from tax increment. The Agency has complied with the requirements of Section 33675 each year since its effective date. Section 33675 also provides that the county auditor is limited in payment of tax increment to the agency to the amounts shown on the agency's statement of indebtedness. The section further provides that the statement of indebtedness is prima facie evidence of the indebtedness of the agency, but that the county auditor may dispute the amount of indebtedness shown on the statement in certain cases. Provision is made for time limits under which the dispute can be made by the county auditor as well as provisions for determination by the Superior Court in a declaratory relief action of the proper disposition of the matter. The issue in any such action must involve only the amount of the indebtedness and not the validity of any contract or debt instrument, or any expenditures pursuant thereto. An exception is made for payments to a public agency in connection with payments by such public agency pursuant to a bond issue which shall not be disputed in any action under Section 33675. Outstanding Indebtedness. The Agency issued $2,427,500 of Multifamily Housing Revenue Bonds on April 25, 1996. The proceeds of the issuance were loaned to the Coachella Valley Housing Coalition (the "Housing Coalition"), a California nonprofit public benefit corporation, to enable the Housing Coalition to acquire and rehabilitate a 150-unit multifamily housing rental apartment development located in the City. As of June 30, 2001, $2,083,000 of the Multifamily Housing Revenue Bonds remained outstanding. This obligation is payable from amounts paid by the Housing Coalition and is not payable from Tax Increment Revenues. 26 On July 17, 1998, the Agency borrowed $5,800,000 from Washington Mutual Bank, F.A. The proceeds were loaned to Temecula Gardens LP (the "Temecula Gardens"), a California limited parmership, to assist Temecula Gardens in the acquisition of land, acquisition and rehabilitation of an existing multi- family housing rental project. As of June 30, 2001, the outstanding loan balance was $5,746,747. The loan is not a general obligation of the Agency, and the City will in no way be responsible for the repayment of the loan. This obligation is payable from amounts paid by Temecula Gardens ~nd is not payable from Tax Increment Revenues. City Obligations. On March 12, 1996, the City conveyed certain real property to the Agency for use on a redevelopment project in exchange for a promissory note in the amount of $918,171. [The Note was paid on March ,2002.] Pass-Through Agreements and Owner Participation Agreements. See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein for a description of the County Agreement and Other Pass-Through Agreements. The Agency is obligated under such pass-through obligations and owner participation agreements to contribute certain property tax increment revenues otherwise allocable to the Agency in the amounts and for the purposes set forth in those agreements or Redevelopment Law, as applicable. Property tax increments arising in the Project Area required for payments by the Agency under certain of these agreements are not "Tax Increment Revenues" for purposes of the Indenture, and are not available to pay debt service on the Bonds. Investment of Agency Funds The Agency may invest moneys not immediately required for operations in a manner consistent with the City's investment policy (the "Investment Policy"). For a description of the types of investments in which the Agency may invest, see "APPENDIX C - AGENCY' S AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING JUNE 30, 2001," Note 2. Controls, Land Use and Building Restrictions All rca1 property in the Project Area is subject to thc controls and restrictions of thc Redevelopment Plan. Thc Redevelopment Plan provides that all new cons~-uction in the Project Area shall comply with all applicable state and local laws in effect, including the various codes of thc City. The Redevelopment Plan specifics particular land usc areas. The Agency may permit an existing but nonconforming usc to continue so long as the Agency determines that thc use is generally compatible with other surrounding development USES. Within the limits, restrictions and controls established in the Redevelopment Plan, the Agency is authorized to limit the number, type, size and height of buildings in the Project Area, and to establish design criteria, traffic circulation, traffic access and other development and design controls necessary for property development within the Project Area. Under exceptional circumstances, the Agency is authorized to permit minor variations from the limits, restrictions, and controls established by the Redevelopment Plan. However, no variation shall be granted which changes a basic land use or which permits substantial departures from the Redevelopment Plan's provisions. In permitting a variation, the Agency must impose such conditions as are necessary to protect the public health, safety or welfare and to assure compliance with the objectives of the Redevelopment Plan. 27 THE REDEVELOPMENT PLAN Under thc Redevelopment Law every redevelopment agency is required to adopt, by ordinance, a redevelopment plan for each redevelopment project. A redevelopment plan is a legal document, the content of which is largely prescribed in the Redevelopment Law rather than a "plan" in the customary sense of the word. The Redevelopment Plan for the Project Area was adopted prior to January 1, 1994. Chapter 942 specifies that a time limit on establishment &new debt be incorporated into the Redevelopment Plan and that time limit shall be twenty years from the adoption of the Redevelopment Plan or January 1, 2004, whichever is later. Pursuant to the amended Redevelopment Plan, the Agency cannot establish new debt after July 12, 2008 that is twenty years after the adoption of' the Redevelopment Plan. In accordance with the amended Redevelopment Plan, taxes as defined in Section 33670 of thc Redevelopment Law shall not be divided and shall not be allocated to the Agency in excess of $1.11 billion except by amendment of the Redevelopment Plan. As amended by Ordinance No. 94-33, the Redevelopment Plan restricts the amount of bonded indebtedness that may be outstanding at any one time. The Agency may issue bonds and/or notes for any of its authorized purposes. These bonds and/or notes may be secured with a pledge of tax increment revenues. The total outstanding principal of'any bonds so issued and repayable from tax increment revenues shall not exceed $340 millinn at any one time, except by amendment of the Redevelopment Plan. The amended Redevelopment Plan specifics that except for the non-discrimination and non- segregation provisions that continue in pcrpetnity, the effectiveness of the Redevelopment Plan shall expire on July 12, 2028 that is forty years from the adoption of the Plan. After expiration of the effectiveness of the Redevelopment Plan, the Agency shall have no authority to act pursuant to the Redevelopment Plan except to pay previously incurred indebtedness and to enforce existing covenants, contracts and other obligations. The Agency may not receive additional tax increment revenue or pay indebtedness after July 12, 2038 except for such purposes as specifically permitted under the Redevelopment Law. Pursuant to the 1991 Settlement Agreement as amended in 1996, various additional limitations are placed on the Redevelopment Plan, including that subject to certain exceptions, no more than $150 million o£tax increment revenues shall be allotted or paid to the Agency during the term of the Plan (excluding the Housing Set-Aside amounts and certain other amounts). See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Limitations under 1991 Settlement Agreement." Project ~4rea Description The Project Area includes approximately 1,635 acres of land primarily located west of Interstate 15 and partially straddling Interstate 15 along Winchester and Ynez Roads. The Project Area includes the Old Town area along Front Street. Description of the Project Area The proceeds of the 2002 Bonds, together with other available funds, will be used to refinance the Agency's redevelopment activities within and of benefit to the Project Area and specifically to refund the Agency's Prior Bonds, to discharge an obligation of the Agency to the County under the County Pass- Through Agreement, including a payment to the County of $6,000,000; to finance redevelopment activities within or o£benefit to the Project Area; to make a deposit to a reserve account, and to provide for the costs of issuing the 2002 Bonds, and to fund the acquisition, planning, design, construction, improvement and equipping of various public facilities which will benefit the Project Area. There are also improvements planned to be made to a Community Theater project and a Children's Museum. An obligation of the Agency to the City will also be paid. 29 Land Uses The land uses for the Project Area are those land uses identified by the redevelopment, which are subject to the established land uses and zoning ordinances for those specific properties within the Project Area, as adopted by the Planning Commission of the City. Those land uses, as established by the Redevelopment Plan, are described briefly below. Where a specific conflict exists between the zoning identified below, the Redevelopment Plan, and the City's zoning ordinances, the zoning ordinances and land uses shall be used as the official zoning allowed within the Project Area. New development within the Project Area must be consistent with the General Plan of the City, and as such, would not result in the development of additional residential tracts. See "APPENDIX B- FISCAL CONSULTANT' S REPORT." Development in the Project Area The Redevelopment Plan provides for redevelopment within the Project Area. The Agency has identified sixteen projects that are currently trader construction or have been recently completed and are not yet reflected on the tax rolls. It is estimated that these projects will produce approximately $19,807,000 in new assessed value over the next three fiscal years with the majority of this new value coming onto the tax rolls for 2003-04. These new developments include a hotel, automobile dealerships, and restaurants, industrial and commercial uses. For a list of these new developments and the timing of their completion, see "APPENDIX B - FISCAL CONSULTANT'S REPORT." In addition to the development listed above, Guidant (Advanced Cardiovascular Systems) is considering an expansion of its current facility. This expansion may involve the purchase of an additional 27 acres and construction of approximately 480,000 square feet of manufacturing, office and warehouse space. This new project is proposed to occur over several years and total $117 million in new assessed value. Assessed Valuation The Project Area's aggregate base year assessed adjusted valuation is $365,093,000. The following table shows the actual assessed values for fiscal years 1997-98 to 2001-02 based upon the County Auditor/Controller's equalized rolls and incremental values of property within the Project Area based on an exclusion of assessed values from the unsecured roll. 30 TABLE 1 TEMECULA REDEVELOPMENT PROJECT NO. 1 HISTORICAL VALUESo) Fiscal Year Base Year Secured® 1987-88 199%98 1998-99(3) 1999-00(4) 2000-01(5) 2001-02(6) Land $167,283,021 $257,651,536 $245,892,018 $264,363,332 $289,139,966 $311,604,778 Improvements 184,324,369 509,708,163 489,035,745 506,462,644 661,965,818 708,667,695 Personal Property 11,212,042 60,354,529 54,006,641 57,206,899 76,039,058 132,483,804 Exemptions (235,673) (4,189,506) (4,463,286) (5,335,600) (8,364,717) (9,033,682) Total Secured $362,583,759 $823,524,722. $784,471,118 $822,697,275 $1,018,780,125 $1,143,722,595 Unsecured Land $ 2,211 $ 511,900 $ 632,432 $ 601,520 $ 575,383 $ 491,189 Improvements 324,497 51,299,843 68,028,880 64,083,915 79,157,583 90,961,216 Personal Property 2,225,879 59,539,699 73,712,523 90,609,655 94,717,350 104,140,155 Exemptions (43,067) (247,357) (81,522) (62,576) (71,100) (73,658) Total Unsecured $2,509,520 $111,104,085 $142,292,313 $155,232,514 $174,379,216 $195,518,902 Grand Total $365,093,279 $934,628,807 $926,763,431 $977,929,789 $1,193,I59,341 $1,339,241,497 I n c r e m e n t a I $569,535,528 $561,670,152 $612,836,510 $828,066,062 $974,148,218 Value: % A n n u a I -4.44% -1.38% 9.11% 35.12% 17.64% Change: o) Source: County of Riverside. (:) Secured values include state assessed non-unitary utility property. o) Values reported by Riverside County have been adjusted to eliminate an incorrectly included Tax Rate Area. Land value has been reduced by $3,669,854 and improvement value has been reduced by $49,745. (4) Values reported by Riverside County have been adjusted to eliminate an incorrectly included Tax Rate Area. Land value has been reduced by $12,318,861 and improvement value has been reduced by $50,665. ts) Values reported by Riverside County have been adjusted to eliminate an incorrectly included Tax Rate Area. Land value has been reduced by $16,111,106 and improvement value has been reduced by $51,678. Values rep~rted by Riverside C~unty have been adjusted t~ eliminate three inc~rrectly included Tax Rate Areas. Landvalue has been reduced by $24,660,055 and improvement value has been reduced by $8,465,740. Source: Fiscal Consultant's Report/County of Riverside. The Fiscal Consultant reviewed historic reported taxable values for the Project Area in order to ascertain the rate of taxable property valuation growth over the most recent ten fiscal years beginning with 1992-93. Their review revealed that the County had mistakenly included a new tax rate area in the Project Area in 1998-99. This new tax rate area included a total of 29 parcels with a combined value of $3,719,599. The review also revealed that for 2001-02, the County included two new tax rate areas in the Agency's assessed values. The values listed above and the proj ections set forth in "COVERAGE ANALYSIS"" below have been adjusted to eliminate the incorrectly included tax rate areas. See "APPENDIX B - III Project Area Assessed Values A. Assessed Values." The Agency has set aside reserves in the event the County attempts to reclaim revenues from tax rate areas that were mistakenly allocate to the Agency. 31 The following table shows the ten largest contributors to the Tax Increment Revenues in the Project Area. TABLE 2 TEMECULA REDEVELOPMENT PROJECT NO. 1 TOP TEN TAXABLE PROPERTY OWNERS FISCAL YEAR 2001-02 Project Area Incremental Value $974,148,218 Project Area Total Value $1,339,241,497 % Total %° Total Project Property Owner Total Value Inc. Value Area Value International Rectifier ( 1 ) $140,136,436 14.39% 10.46% Advanced Cardiovascular Systems Inc. 132,236,087 13.57% 9.87% Temecula Town Center Associates (1) 74,151,428 7.61% 5.54% Kimco Palm Plaza (1) 39,381,956 4.04% 2.94% Hudson Respiratory Care Inc. (1) 35,796,016 3.67% 2.67% Starwood Wasserman Temecula 26,827,847 2.75% 2.00% Costo Wholesale Corporation (1) 22,606,321 2.32% 1.69% J C Penney Company Inc. ( 1 ) 21,452,981 2.20% 1.60% Arden Realty Limited Partnership (1) 21,423,088 2.20% 1.60% Lowes HIW Inc. (1) 19,271,493 1.98% 1.44% $533,283,653 54.74% 39.82% (1) Owner has pending appeals on one or more parcels. Source: Fiscal Consultant's Report. Appeals of Assessed Values Pursuant to California law, property owners may apply for a reduction of their property tax assessment by filing a written application, in the form prescribed by the State Board of Equalization, with the appropriate county board of equalization or assessment appeals board. After the applicant and the assessor have presented their arguments, the Appeals Board makes a final decision on the proper assessed value. The Appeals Board may rule in the assessor's favor, in the applicant's favor or the Appeals Board may set its own opinion of the proper assessed value, which may be more or less than either the assessor's opinion or the applicant's opinion. Any reduction in the assessment ultimately granted applies to the year for which application is made and during which the written application was filed. After a reduction is allowed, the property is reviewed on an annual basis to determine its full cash value and the valuation may be adjusted accordingly. This may result in further reductions or increases in value. Such increases are in accordance with the actual cash value of the property and may exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of the State Constitution. Once the property has regained its prior value, adjusted for inflation, it is once again subject to the annual inflationary growth rate allowed under Article XIIIA. 32 Appeals for reduction in the "base year" value of an assessment, if successful, reduce the assessment for the year in which the appeal is taken and prospectively after that. The "base year" is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date. Refunds for taxpayer overpayment of property taxes may include refunds for overpayment of taxes in years after that which was appealed. Any taxpayer payment of property taxes that is based on a value that is subsequently adjusted downward will require a refund for overpayment. Assessment appeals data from the County has been reviewed by the Fiscal Consultant to determine the potential impact that pending appeals may have on the projected Tax Increment Revenues. Within the Project Area since 1995, there have been a total of 337 appeals filed. Of these, 179 have been allowed with a reduction in value, 175 have been denied or withdrawn and there are 53 assessment appeals currently pending that could result in a loss of value that will affect Agency revenues. Reductions in value on the successful appeals have totaled $86,539,734. The amount of assessed value currently under appeal is $401,729,085. Based upon the historical rate that appeals have been allowed with a reduction in value and upon the average reduction in value that has been allowed on those successful appeals, the Fiscal Consultant has estimated the loss in value that may result from the currently pending appeals. By applying these historical averages to the pending appeals, the Fiscal Consultant has estimated that the Agency may experience a loss of assessed value of $2,537,415 on 10 of the pending appeals during 2002-03 and a loss in assessed value of $72,675,299 on 19 of the pending appeals during 2003-04. Fiscal Consultant's Report Eight of thc top ten tax payers in the Project Area have filed assessment appeals that are currently pending. Many of these appeals are seeking reduction ora property's initial valuation. Temecula Town Center Associates, Kimco Palm Plaza, Costco Wholesale Corporation and J C Penney have all appealed their valuations for 2000-01. Each of these owners and Lowes H1W Inc. have filed appeals of their assessed values for 2001-02. International Rectifier has pending appeals for the 1996-97, 1998-99,200-01 and 2001- 02 fiscal years. Where a property owner has a pending assessment appeal on the initial valuation ora new development, a successful appeal will adjust the base value for the property and that base value will carry forward into future years. The Assessor typically rolls a reduction in value for a particular fiscal year forward into subsequent years with adjustments for inflation, improvements to the property and other factors. However, if the values are reduced, the taxpayer may receive property tax refunds for the cumulative reductions. See "APPENDIX B - FISCAL CONSULTANT'S REPORT." Many of the successful appeals filed in thc Project Area are based on Section 51 of the Revenue and Taxation Code which requircs that for each lien date the value of real property shall be the lesser of its base year value annually adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution or its full cash value taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value. Significant reductions have taken place in some counties due to declining real estate values. Reductions made under this code section may be initiated by the Assessor or requested by the property owner. After a roll reduction is granted under this section, the property is reviewed on an annual basis to determine it's full cash value and the valuation is adjusted accordingly. This may result in further reductions or in value increases. Such increases shall be in accordance with the actual full cash value of the property and it may exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of thc State Constitution. Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA. Direct and Overlapping Bonded Debt The Direct and Overlapping Bonded Debt Statement of the Project Area as of ,2002, is shown below: 33 TABLE 3 TEMECULA REDEVELOPMENT PROJECT NO. 1 SECURED PROPERTY TAX ROLL AND DIRECT AND OVERLAPPING DEBT I. Assessed Value 2001-2002 Secured Roll Assessed Valuation $1,148,682,805 II. Secured Property Tax Roll Parcels Total Levied Description of Tax Bill Type Parcels Levied Tota_r Levy % Applicable in RDA Levy Amount AD 155 AD 190 $268,404 9.303% 61 $24,970 AD 161 SERIES A AD 3,394 $441,498 7.324% 141 $32,336 AD 161 SERIES B AD 3,271 $2,137,391 10.943% 48 $233,889 AD 161 SERIES C AD 3,157 $530,126 29.971% 139 $158,885 CFD 88-12 CFD 476 $1,482,079 86~302% 201 $969,381 GENERAL PURPOSE 1% 681,718 $897,071,400 1.270% 903 $11,394,150 UNIFIED SCHOOL DISTRICT GO 54,477 $5,722,563 14.923% 903 $853,987 METROPOLITAN WTR DEBT SV GO 379,505 $6,721,796 2.117% 902 $142,271 EASTERN MUNICIPAL WATER GO 116,507 $2,366,002 8,869% 893 $209,842 RCWD R DIV DEBT SERVICE GO 8,097 $5,879,943 15.683% 899 $922,179 RANCHO CALIFORNIA WD (STA ROSA DIV) GO 8,097 $3,827,357 0.001% 3 $51 FLD CNTL STORMWATEPJCLEANWATER SPCL 43,831 $308,875 11,152% 731 $34,446 TEMECULA PARKS/LIGHTING SVS LMD 21,289 $2,630,371 16,736% 895 $440,221 TEMECULA ZONE B LMD 16,360 $420,125 0.648% 106 $2,722 TEMECULA ZONE C LMD 8,652 $984,580 2,080% 91 $20,475 TEMECULA ZONE D LMD 141 $12,687 95.209% 70 $12,079 TEMECULA FiRE PREVENTION FIRE 120 $34,306 16.865% 20 $5,788 RCWD FIRE SERVICE FIRE 1,346 $149,797 37.062% 737 $55,518 SANTA ROSA WATER FiRE FIRE 342 $49,830 1.359% 3 $677 SERVICE MWD STANDBY EAST WTR 174,129 $2,648,347 0.421% 901 $11,155 MWD STANDBY WEST WTR 206,379 $2,319,686 0.007% 3 $156 EWMD STANDBY - COMBINED CHARGE WTR 174,362 $3,917,825 0,510% 894 $19,965 2001-2002 TOTAL PROPERT~ TAX LIABILITY $15,520,172 TOTAL PROPERTY TAX AS A PERCENTAGE OF 2001-02 ASSESSED VALUATION 1.35% II1. Land Secured Bond Indebtedness Parcels Outstanding Direct and LevJed Amount OverlappinR Bonded Debt Type Issued Outstandin~l % Applicabte In RDA of Debt ASSESSMENT DISTRICT NO. 155 AD $3,461,064 $985,000 9.303% 61 $91,636 REASSESSMENT DISTRICT NO. 161-R AD $28,205,000 $26,625,000 13,673% 141 $3,640,560 CFD 88-12 CFD $18,690,000 $16,010,000 66.302% 201 $10,614,879 TOTAL LAND SECURED BONDED DEBTm $14,255,439 34 IV. General Obligation Bond Indebtedness Parcels Outstanding Direct and Levied Amount Ovedappinfl Bonded Debt Type Issued Outstandin~ °_/o Applicable In RDA of Debt TEMECULA UNIFIED B GO $65,000,000 $58,035,000 14.923% 903 $8,660,658 &l RCWD R DIV DEBT SERVICE GO $44,360,000 $18,857,838 15.683% 899 $2,957,564 RANCHO CALIFORNIA WD (STA ROSA DIV) GO $44,065,000 $14,658,573 0.001% 3 $195 METROPOLITAN WTR DEBT SV GO $850,000,000 $527,480,000 0,098% 902 $518,196 EASTERN MUNICIPAL WATER GO $35,430,000 $29,055,000 8,869% 893 $2,576,901 TOTAL GENERAL OBLIGATION BONDED DEBT $14,713,513 Parcels Authorized Direct and Levied Amount Ovedappin,q Bonded Debt Type Authorized Unissued % Appliceble In RDA Applicable TEMECULA UNIFIED B & I GO $65,000,000 $0 14.923% 903 $0 RCWD R DIV DEBT SERVICE GO $63,000,000 $18,935,000 15.683% 899 $2,969,665 RANCHO CALIFORNIA WD (STA ROSA DIV) GO $55,000,000 $10,640,000 0.001% 3 $142 METROPOLITAN WATER DISTRICT GO $850,000,000 $0 0.098% 902 $0 EASTERN MUNICIPAL WATER GO $40,530,000 $5,100,000 8,869% 893 $1,094,358 TOTAL UNISSUED GENERAL OBLIGATION $4,064,165 BONDSm TOTAL OUTSTANDING AND UNISSUED GENERAL OBLIGATION BONDED $t8,777,678 INDEBTEDNESS V. Redevelopment Agency Indebtedness Outstanding Direct and Amount Overlappin,q Bonded Debt Type Issued Outstandinq % Applicable of Debt RDA $ - 100.000% $-* TAL OF ALL OUTSTANDING AND UNISSUED DIRECT AND OVERLAPPING BONDED BT m Additional bonded debt or available bond euthorization may exist but is not shown because a tax was not levied for the referenced fiscal year. Source: Albert A. Webb Associates. Project Area Pass-Through Agreements See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein for a discussion of certain Pass-Through Agreements and other contracts to which the Agency is a party. The pledge of Tax Increment Revenues by the Agency under such agreements is senior to its pledge of Tax Increment Revenues under the Indenture to secure the repayment of the Bonds. 'Preliminary, subject to change. 35 COVERAGE ANALYSIS The following table sets forth projections of Tax Increment Revenues for the Project Area, together with the estimated debt service coverage for the 2002 Bonds to August 1, 20.__. These projections are based on certain assumptions, and no assurance can be given that this or any level of Tax Increment Revenues will be achieved. See "RISK FACTORS - Estimated Tax Increment Revenues" herein. TABLE 4 TEMECULA REDEVELOPMENT PROJECT NO. 1 Projected Debt Service Coverage (Dollars in Thousands) Total Gross Net Tax 2002 Bonds Estimated Fiscal Taxable Incremental Tax Increment Increment Debt Debt Service Year Value Value Revenue Revenues( 1 ) Service' Coverage % 2001-2002 $1,339,241 $974,148 $10,086 $2,085 $ % 2002-2003 1,359,698 994,604 10,245 2,129 2003-2004 1,325,453 960,360 9,863 2,031 2004-2005 1,348,627 983,534 10,071 2,355 2005-2006 1,370,868 1,005,775 10,268 2,384 2006-2007 1,393,555 1,028,461 10,468 2,413 2007-2008 1,416,695 1,051,602 10,671 2,442 2008-2009 1,440,298 1,075,204 10,904 2,492 2009-2010 1,464,373 1,099,279 11,148 2,548 (1) Gross Tax lncrernent Revenues less housing set-aside, statutory pass-through payments and amounts not pledged to repayment of the 2002 Bonds. Taxable values for 2001-02 have been adjusted to remove value for three tax rate areas incorrectly included by the County. See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" and "APPENDIX B - FISCAL CONSULTANT'S REPORT." Source: Fiscal Consultant's Report/County of Riverside. THE TEMECULA PUBLIC FINANCING AUTHORITY The Temecula Public Financing Authority was established pursuant to a Joint Exercise of Powers Agreement dated , by and between the City and the Agency in accordance with the provisions of the Act. The Authority was created for the purpose of providing financing for public capital improvements for the City and the Agency through the acquisition by the Authority of such public capital improvements and/or the purchase by the Authority of local obligations within the meaning of the Act and/or the making of secured or unsecured loans to the City or the Agency in connection with the financing of public capital improvement projects. Under the Act, the Authority has the power to purchase the 2002 Bonds for immediate resale. CERTAIN LEGAL MATTERS Legal Opinions The legal opinion of Quint & Thimmig LLP, San Francisco, California, as Bond Counsel, approving the validity of the 2002 Bonds, will be made available to purchasers at the time of original delivery of the 2002 Bonds and the proposed form thereof appears in Appendix D hereto. Bond Counsel's employment as Bond Counsel is limited to a review of the legal proceedings required for the authorization of the 2002 Bonds and to rendering the opinion set forth in Appendix D hereto. 'Preliminary, subject to change. 36 McFarlin & Anderson is serving as Disclosure Counsel to the Agency. Certain legal matters will be passed upon for the Agency by Richards, Watson & Gershon, Agency Counsel. Enforceability of Remedies The remedies available to the Trustee and the registered owners of the 2002 Bonds upon an event of default under the Indenture and any other document described herein are in many respects dependent upon regulatory and judicial actions which are often subject to discretion and delay. Under existing law and judicial decisions, the remedies provided for under such documents may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the 2002 Bonds will be qualified to the extent that the enforceability of the legal documents with respect to the 2002 Bonds are subject to limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally and by equitable remedies and proceedings generally. CONTINUING DISCLOSURE The Agency has covenanted for the benefit of holders and beneficial owners of the 2002 Bonds to provide certain financial information and operating data relating to the Agency by not later than eight months following the end of the Agency's fiscal year (which reporting date would be March 1), commencing with the report for the 2001-02 Fiscal Year (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events, if material. The Annual Report will be filed by the Agency with each Nationally Recognized Municipal Securities Information Repository, and with the appropriate State information depository, if any. The notices of material events will be filed by the Agency with the Municipal Securities Rulemaking Board (and with the appropriate State information depository, if any). The specific nature of the information to be contained in the Annual Report or the notices of material events is set forth in the Form of Continuing Disclosure Certificate in Appendix E hereto. These covenants have been made in order to assist the Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). The Agency has never failed to comply in all material respects with any previous undertakings with regard to said Rule to provide annual reports or notices of material events. ABSENCE OF LITIGATION At the time the 2002 Bonds are delivered, the Agency and the Authority will certify that, to their best knowledge, there is no litigation pending with respect to which the Agency or the Authority has been served with process or knows to be threatened against the Agency or the Authority in any court or other tribunal of competent jurisdiction, State or federal, which seeks to enjoin or challenges the authority of the Agency or the Authority to participate in the transactions contemplated by this Official Statement, the 2002 Bonds or the Indenture. TAX MATTERS In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however, to the qualifications set forth below, under existing law, the interest on the 2002 Bonds is excluded from gross income for federal income tax purposes, and interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; provided, however, that for 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 certain income and earnings. The opinions set forth in the preceding paragraph are subject to the condition that the Agency complies with all requirements of the Code that must be satisfied subsequent to the delivery of the 2002 Bonds in order that such interest be, or continue to be, excluded from gross income for federal income tax purposes. The Agency has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of such interest in gross income for federal income tax purposes to be retroactive to the date of delivery of the 2002 Bonds. Bond Counsel expresses no opinion regarding other federal tax consequences arising with respect to the 2002 Bonds. 37 In the further opinion of Bond Counsel, interest on the 2002 Bonds is exempt from California personal income taxes. Owners of the 2002 Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the 2002 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 Bonds other than as expressly described above. The form of opinion Bond Counsel expects to render at the time of delivery of the 2002 Bonds is set forth in Appendix D hereto. Should the interest with respect to the 2002 Bonds become includable in gross income for federal income tax purposes, the 2002 Bonds are not subject to early redemption and will remain outstanding until maturity or until redeemed in accordance with the Indenture. Bond Counsel's opinion may be affected by action taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions taken or events are taken or do occur. UNDERWRITING The Agency will sell the 2002 Bonds to the Authority for immediate resale to the Underwriter. The 2002 Bonds were purchased from the Authority by Stone & Youngberg LLC (the "Underwriter") on May ,2002. The Underwriter has agreed to purchase the 2002 Bonds at the purchase price orS (which is the aggregate principal amount of the 2002 Bonds, less an underwriting discount of $ , less an original issue discount of $ ). The initial public offering prices stated on the cover of this Official Statement maybe changed from time to time by the Underwriter. The Underwriter may offer and sell the 2002 Bonds to certain dealers, banks acting as agents and others at prices lower than said public offering prices. RATINGS Standard & Poor's Ratings Services has assigned its municipal bond ratings of .... to the 2002 Bonds with the understanding that upon delivery of such 2002 Bonds a Municipal Bond Insurance Policy insuring the payment when due of the principal of and interest on the 2002 Bonds will be issued by Credit ratings reflect the views of the respective rating agencies and any explanation of the significance of such ratings should be obtained from the agencies. There is no assurance that any rating will not subsequently be revised or withdrawn entirely if, in the judgment of the assigning agency, circumstances so warrant. The Agency undertakes no responsibility either to bring to the attention of the Owners of the 2002 Bonds any downward revision or withdrawal of such rating and any such downward revision or withdrawal could have an adverse effect on the market price of the 2002 Bonds. The Agency has no obligation to maintain any rating for the 2002 Bonds. [VERIFICATION OF MATHEMATICAL ACCURACY [Upon delivery of the 2002 Bonds, the arithmetical accuracy of certain computations included in the schedules provided by the Underwriter on behalf of the Agency relating to the (a) adequacy of forecasted receipts of principal and interest on the Escrowed Federal Securities and cash to be held pursuant to the escrow for thc Prior Bonds, (b) forecasted payments of principal and interest with respect to the Prior Bonds on and prior to the projected redemption date, and (c) yields with respect to the 2002 Bonds and on the Escrowed Federal Securities to be deposited upon the delivery of the 2002 Bonds, will be verified by Grant Thornton LLP, independent certified public accountants (the "Verification Agent"). Such verification shall 38 be based solely upon information and assumptions supplied to the Verification Agent by the Underwriter. The Verification Agent has restricted its procedures to examining the arithmetical accuracy of certain computations and has not made a study or evaluation of the information and assumptions on which such computations are based and, accordingly, has not expressed an opinion on the data used, the reasonableness of the assumptions or the achievability of the forecasted outcome.] PROFESSIONAL FEES In connection with the issuance of the 2002 Bonds, fees payable to certain professionals, including the Underwriter, Quint & Thimmig LLP, as Bond Counsel, Ficldman, Rolapp & Associates, as Financial Advisor, McFarlin & Anderson, as Disclosure Counsel to the Agency, U.S. Bank, N.A., as Trustee and as Escrow Agent, [and Grant Thornton LLP, as Verification Agent], are contingent upon the issuance of the 2002 Bonds. MISCELLANEOUS The purpose of this Official Statement is to supply information to prospective buyers of the 2002 Bonds. Quotations from, and summaries and explanations of, the Indenture and other documents and statutes contained herein do not purport to be complete, and reference is made to such documents, Indenture and statutes for full and complete statements of their provisions. Unless otherwise noted, all information contained in this Official Statement pertaining to the Agency, the City and the Project Area has been furnished by the Agency. Any statement in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Agency and the purchasers or registered owners of any of the 2002 Bonds. The execution and delivery of this Official Statement has been duly authorized by the Agency. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Executive Director 39 APPENDIX A SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE APPENDIX B FISCAL CONSULTANT'S REPORT APPENDIX C REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDING JUNE 30, 2001 APPENDIX D FORM OF BOND COUNSEL OPINION Aphl ,2002 Redevelopment Agency of the City of Temecula 43200 Business Park Drive Temecula, California 92590 OPINION: $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds Members of the Agency: We have acted as bond counsel in connection with the issuance by the Redevelopment Agency of the City of Temecula (the "Agency") of $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds (the "Bonds"), pursuant to the Community Redevelopment Law of the State of California (the "Law"), Resolution No. , adopted by the Agency on March 26, 2002, and an Indenture of Trust, dated as of April 1, 2002 (the "Indenture"), between the Agency and U.S. Bank, N.A., as trustee. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the Agency contained in the Indenture and in the certified proceedings and certifications of public officials and others furnished to us without undertaking to verify the same by independent investigation. Based upon the foregoing we are of the opinion, under existing law, as follows: 1. The Agency is duly created and validly existing as a public body, corporate and politic, with the power to enter into the Indenture, perform the agreements on its part contained therein and issue the Bonds. 2. The Indenture has been duly approved by the Agency and constitutes a valid and binding obligation of the Agency enforceable in accordance with its terms. 3. Pursuant to the Law, the Indenture creates a valid lien on the funds pledged by the Indenture for the security of the Bonds, on a parity with the lien thereon with respect to any Parity Debt (as defined in the Indenture). 4. The Bonds have been duly authorized, executed and delivered by the Agency and are valid and binding special obligations of the Agency, payable solely from the sources provided therefor in the Indenture. 5. The interest on the 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. The opinions set forth in the preceding sentence are subject to the condition that the Agency comply with all requirements of the Internal Revenue Code of 1986 that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Agency has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the D-1 inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. 6. Interest on the Bonds is exempt from personal income taxation imposed by the State of California. The rights of the owners of the Bonds and the enfomeability of the Bonds and the Indenture may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in appropriate cases. Respectfully submitted, D-2 APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE APPENDIX F GENERAL INFORMATION REGARDING THE CITY APPENDIX G MUNICIPAL BOND INSURANCE POLICY APPENDIX H BOOK-ENTRY SYSTEM The f ollowin g description of the procedures and record keeping with respect to beneficial ownership interests in the 2002 Bonds, payment of principal of and interest on the 2002 Bonds to Direct Participants, Indirect Participants or Beneficial Owners (as such terms are defined below) of the 2002 Bonds, confirmation and transfer of beneficial ownership interests in the 2002 Bonds and other Bond-related transactions by and between DTC, Direct, Participants, Indirect Participants and Beneficial Owners of the 2002 Bonds is based solely on in formation furnished by D TC to the Agency which the Agency believes to be reliable, but the Agency 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 2002 Bonds. The 2002 Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered 2002 Bond will be issued for each maturity of the 2002 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 17A 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 fi.om 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 of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number &Direct Participants of DTC and Members of the National Securities Cleating 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 2002 Bonds on DTC's records. The ownership interest of each actual purchaser of each 2002 Bond (the "Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation fi.om 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, fi.om the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the 2002 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the 2002 Bonds, except in the event that use of the book-entry system for the 2002 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 H-1 representative of DTC. The deposit of 2002 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 2002 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct 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 Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of 2002 Bonds may wish to take certain steps to augment the transmissions to them of notices of significant events with respect to the 2002 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the 2002 Bonds documents. For example, Beneficial Owners of 2002 Bonds may wish to ascertain that the nominee holding the 2002 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Trustee and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the 2002 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 2002 Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures.. Under its usual procedures, DTC mails an Omnibus Proxy to the Agency as soon as possible after the Record Date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the 2002 Bonds are credited on the Record Date (identified in a listing attached to the Omnibus Proxy). Principal, redemption price and interest payment on the 2002 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative ofDTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information fi.om the Agency or the Trustee, 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 of DTC (nor the nominee), the Trustee or the Agency, 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 other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its service as depository with respect to the 2002 Bonds at any time by giving reasonable notice to the Agency and the Trustee. 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 Indenture. The Agency 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 Indenture. The information in this section concerning DTC and DTC's book-entry system has been obtained fi.om sources that the Agency believes to be reliable, but the Agency takes no responsibility for the accuracy thereof. H-2 Discontinuance of DTC Services In thc event that (a) DTC determines not to continue to act as securities depository for thc 2002 Bonds, or Co) thc Agency determines that DTC shall no longer act and delivers a written certificate to the Trustee to that effect, then the Agency will discontinue thc Book-Entry System with DTC for the 2002 Bonds. If the Agency determines to replace DTC with another qualified securities depository, thc Agency will prepare or direct the preparation ora new single separate, folly registered Bond for each maturity of the 2002 Bonds registered in the name of such successor or substitute securities depository as are not inconsistent with thc terms of thc Indenture. If thc Agency fails to identify another qualified securities depository to replace thc incumbent securities depository for the 2002 Bonds, then thc 2002 Bonds shall no longer be restricted to being registered in thc 2002 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 2002 Bonds shall designate. In the event that thc Book-Entry System is discontinued, the following provisions would also apply: (i) the 2002 Bonds will be made available in physical form, (ii) principal of, and redemption premiums if any, on the 2002 Bonds will be payable upon surrender thereof at the trust office of the Trustee identified in the Indenture, and (iii) the 2002 Bonds will be transferable and exchangeable as provided in the Indenture. The Agency and the Trustee 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 book~ as being an owner of the 2002 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 2002 Bonds; (iiO the delivery of any notice which is permitted or required to be given to registered owners under the Indenture; (iv) the selection by DTC or any DTC Participant of any person to receive payment in the event of a partial redemption of the 2002 Bonds; (v) any consent given or other action taken by DTC as registered owner; or (vi) any other matter arising with respect to the 2002 Bonds or the Indenture. The Agency and the Trustee cannot and do not give any assurances that DTC, DTC Participants or others will distribute payments of principal of or interest on the 2002 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 Agency and the Trastee 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 2002 Bonds or any error or delay relating thereto. H-3 APPENDIX F GENERAL INFORMATION REGARDING THE CITY 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 1, 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 of Riverside and various school, water and other districts, also provide various levels of service within the City of Temecula. 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 17~ largest city in the Inland Empire and the 5t~ largest in Riverside County (as of December, 2000), encompassing 27.1 square miles. The City of Temecula is 85 miles southeast of Los Angeles, 55 miles north of San Diego, 61 miles southeast of Orange County, and 20 miles inland fi.om the cities of San Juan Capistrano and Oceanside. The City's approximately 67,000 residents are offered a broad range of housing options fi.om apartments to luxury custom homes, with the median housing price at $234,000. Population From 1990 - 2000, the City's population grew fi.om 27,099 to 53,791, a gain of 26,692 or 98.5%. In this same per/od, Riverside County added 352,442, a gain of 31.0% . CITY OF TEMECULA AND COUNTY OF RIVERSIDE POPULATION FROM 1990 TO 2001 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' 67,000 24.56 N/A N/A 'Includes annexation of Vail Ranch area. N/.4 - Information not available. Source: California Department of Finance. F- 1 TEMRDA APPENDIX F¢.wlXl/BF/388 CITY OF TEMECULA ESTIMATED POPULATION GROWTH Year Population 2010 76,000 2020 84,000 Source: City of Temecula. Construction Activity The following table shows a five year history of construction activity in the City. CITY OF TEMECULA BUILDING PERMITS AND VALUATIONS 1997 - 2001 1997 1998 1999 2000 2001°) Valuation ($000): Residential $97,916,584 $128,194,701 $180,139,368 $156,787,850 $117,979,567 Non-residential 24,737,297 87,530,400 77,471,298 58.320.736 26.901.85 I Total $122,653,88l $215,725,101 $257,610,666 $215,108,586 $144,881,418 Residential Units: Single family 756 714 1,276 1,142 877 Multiple family ~8 724 198 244 0 Total 794 1,438 1,474 1,386 877 ~ Through October 2001. Source: Construction Industry Research Board. F-2 TEMRDA APPENDIX Fe.wpd/BF/388 From 1990 - 2000, the City's housing stock grew by 8,922 (up 73.9% with all but 716 of the City's new units being single family homes). In 1999 alone, 20.2% of the City's housing stock experienced a change in ownership, making it the most active market in the inland region. CITY OF TEMECULA COMMERCIAL AND RESIDENTIAL CONSTRUCTION AND PROPERTY VALUE 1992 - 2001 Commercial Constructionm Residential Construction°) Property Values(2) Number Number Fiscal Year of Units Value of Units 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 85,4 I0 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 Values in thousands of dollars. Source: (1) City of Temecula, Building and Safety Department. (2) County L~nd Use Statistical Recap Report. F-3 TEMRDA APPENDIX Fe.wpd/BF/388 Direct and Overlapping Bonded Debt Direct and Overlapping Bonded Debt. The statement of direct and overlapping debt (the "Debt Report") set forth below was prepared by California Municipal Statistics, Inc. as of September 1, 2001. The Debt Report includes only such information as has been reported to California Municipal Statistics, Inc. by the issuers of thc debt described therein and by others. The Debt Report is included for general information purposes only. The City takes no responsibility for its completeness or accuracy. DIRECT AND OVERLAPPING BONDED DEBT (As of September 1, 2001) CITY OF TEMECULA 2000-01 Assessed Valuation: $4,533,586,569 Redevelopment Incremental Valuation: 827~665~716 Adjusted Assessed Valuation: $3,705,920,853 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 9/1/01 Met~opoliten Water District 0.378% $ 1,993,874 Eastern Municipal Water District, I.D. No. U-8 82.518 4,649,889 Temecula Unified School District 70.386 39,240,195 City of Temecula 100. 0 Rancho California Water District, Rancho Division 68.589 4,921,261 Rancho California Water District, Santa Rosa Division 3.93l 482,923 Rancho California Water Dis~ct Community Facilities District No. 88-3 100. 6,040,000 Temecula Community Facilities District No. 88-12 100. 16,010,000 Winchester Hills Community Facilities District No. 98-1 100. 11,830,000 County 1915 Act Bonds (Estimated) Various 53~350,992 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $138,519,134 DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT: Riverside County General Fund Obligations 5.493% $ 36,569,183 Riverside County Board of Education Certificates of Participation 5.493 871,306 Temecula Unified School District Certificates of Participation 70.386 8,981,254 City of Temeeula 100. - (1) Temecula Community Services Dis~ct Ce~ficates of Participation 100. 3,960,000 Rancho California Water District Certificates of Participation 49.420 83,976~008 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT $134,357,751 Less: Riverside County Administrative Center Authority (100% self-supporting from tax increment revenues) 357,594 Temecula Unified School Distzict Certificates of Participation (self-supporting from tax increment revenues) 4~339~297 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT $129,660,860 GROSS COMBINED TOTAL DEBT $272,876,885 (2) NET COMBINED TOTAL DEBT $268,179,994 (1) Excludes refunding certificates of participation to be sold. (2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obliga6ons. Ratios to 2000-01 Assessed Valuation: Direct Debt ...................................................... 0.00% Total Direct and Overlapping Tax and Assessment Debt .................. 3.06% Ratios to Adjusted Assessed Valuation: Gross Combined Total Debt ......................................... 7.36% Net Combined Total Debt .......................................... 7.24% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/01: $0 Source: California Municipal StaEstics, Inc. F-4 TEMRDA APPENDIX Fe.wpd/BF/388 Economic Condition and Outlook Tcmccula's economic base is anchored by a number of firms specializing in biomedical technology and supplies, high technology controllers and semi-conductors, among others. Thc City's retail base is also experiencing growth and is home to several auto dealers including Honda, Toyota and Nissan. The following tables set forth major manufacturing and non-manufacturing employers: CITY OF TEMECULA MAJOR MANUFACTURING EMPLOYERS (As of January 1, 2002) Approximate No. Employer of Employees Type of Business Guidant 2,600 Medical equipment International Rectifier/Hexfet 653 Power semi-conductors Hudson Respiratory Care Inc. 579 Medical equipment Channell Commercial Corp. 510 Cable enclosures Bianchi International 294 Electric/automation controls Plant Equipment 260 Telephone equipment Milgard Manufacturing 250 Windows Maxxim Medical 227 Specialty medical products Flowserve U S Inc. 194 Manufacturing The Scotts Company / Temecula 190 Manufacturing Source: City Finance Department. CITY OF TEMECULA MAJOR NON-MANUFACTURING EMPLOYERS (As of January 1, 2002) Approximate No. Employer of Employees Type of Business Temecula Valley Unified School District (TVUSD) 1,128 Public school system Professional Hospital Supply 550 Medical equipment/supplies Albertsons 490 Supermarket Costco Wholesale 370 Wholesale warehouse City of Temecula 214 Local Govemment Tru Green Land Care 200 Contractor - General Lowe's HI W Inc. 195 Retail Target 181 Retail Florasense By Endar 181 Wholesale, Distributors Robinson May 180 Retail Sears Roebuck & Co. 178 Retail Source: City Finance Department. F-5 TEMRDA APPENDIX Fc.wpd/BF/388 Financial Information The City's £mancial records for general governmental operations are maintained on a modified accrual basis, with revenues recorded when available and measurable and expenditures recorded when the services or goods are received and the liability incurred. Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of the control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Budgetary Policy and Control Budgets are adopted annually by the City Council by resolution and are prepared for each fund in accordance with its basis of accounting. As provided by City ordinance, the Finance Officer is responsible for preparing the budget and for its implementation after adoption. All appropriations lapse at year end. The City Manager has the legal authority to transfer operating budget appropriations within a budgetary department provided that total appropriations for a department are not changed. Changes to total departmental appropriations require the majority approval of the City Council. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual budget adopted by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department. F-6 TEMRDA APPENDIX Fe.wpd/BF/388 CITY OF TEMECULA GENERAL GOVERNMENTAL REVENUES BY SOURCE 1999 2000 2001 Taxes $22,109,500 $27,411,887 $32,789,666 Licenses and permits 3,272,194 3,418,465 3,605,034 Intergovernmental 7,559,858 11,045,122 7,504,046 Charges for services ! 3,189,792 14,408,815 12,437,598 Fines and forfeitures 408,300 423,140 458,199 Use of money and property 4,513,508 2,698,614 3,210,811 Other 471,903 721,325 1,402,736 TOTAL REVENUES $51,525,055 $60,127,368 $61,408,090 Note: Includes all governmental fired types[ for information since inconporafion on December 1, 1989]. CITY OF TEMECULA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION 1999 2000 2001 CURRENT: General government $4,753,015 $5,817,503 $7,190,463 Public safety 7,335,705 8,690,741 8,847,592 Public works 2,419,627 3,807,780 4,195,189 Community development 9,758,485 10,196,997 11,811,545 Community services 6,499,294 7,165,782 7,888,862 Capital outlay 27,443,502 22,304,437 13,603,379 DEBT SERVICE: Principal retirement 1,195,681 1,258,415 1,317,036 Interest and fiscal charges 1,395,509 1,439,967 1,516,179 TOTAL EXPENDITURES $60,800,818 $60,681,622 $56,370,245 Note: Includes all governmental fund types. Source: City Finance Department. F-7 TEMRDA APPEND/X Fe.wpd/BF/388 Sales Tax Assessed Values The City of Temecula provides high quality services to residents. 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. CITY OF TEMECULA SALES TAX HISTORY Year Amount 1989-90 $632,153 1996-97 $8,774,595 1997-98 1998-99 1999-00 2000-01 (est.) $15,700,000 Source: City of Temecula. CITY OF TEMECULA PRINCIPAL SECURED PROPERTY OWNERS FOR Tl~g. YEAR ENDED JUNE 30, 2001 2001 Assessed Percent of Valuation Total Assessed Taxpayer Type of Business (in thousands) (Valuation) International Rectifier Corporation Manufacturing $143,188 3.33% Advanced Cardiovascular System Inc. Manufacturing 102,168 2.37 Temecula Towae Center Associates Real Estate Development 73,004 1.70 GMS Realty Real Estate Development 38,027 0.88 Hudson Respiratory Care, Inc. Manufacturing 34,982 0.81 Kimco Palm Plaza Limited Partnership Real Estate Development 32,997 0.77 Arden Realty Limited Parmership Real Estate Development 26,632 0.62 Knickerbocker Properties Inc. XX Real Estate Development 23,365 0.54 John W. Hoffee II Trust Manufacturing 21,803 0.51 Starwood Wasserman Tececula Property Management 21,752 0.51 $ 517,962 12.04% Source: Riverside County Assessor's Offtce. F-8 TEMRDA APPENDIX Fc.wpd/BF/388 CITY OF TEMECULA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY FOR THE FISCAL YEARS ENDED JUNE 30, 1999, 2000 AND 2001 (Values in Thousands) Total Exemptions Net Total Estimated Fiscal Year Secured and Veteran Net Assessed Exemptions Assessed Actual Taxes Unsecured Church, etc. Value Homeowners Value Value 1999 $ $( ) $ $( ) $ $ 2000 $ $( ) $ $( ) $ $ 2oot $ $( ) $ $( ) $ $ Source: Riverside County,4ssessor's Office. General Information Industrial Real Estate. The City is part of the Inland Empire's industrial real estate market, the second strongest in the United States after suburban Chicago. In 1999, the inland region's 26.1 million square feet of gross space absorption set a record, surpassing the high of 118.0 million square feet in 1998. In Southern California, the Inland Empire's 220 million square feet of industrial space is second only to Los Angeles County's 860 million square feet. Coldwell Banker estimates that in April 2000, the City had 7.8 million square feet of industrial space or 3.3% of the inland area's inventory. Among local cities, this ranked tenth just below San Bernardino (12.9 million) and above Colton (4.9 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. .4griculture. The climate and soil in the City are particularly favorable for growing avocado, grape, and citrus crops. There are currently agricultural management firms in the Temecula area which manage agricultural production of thousands of acres of land ow]ted by individual investors, partnerships and corporations. The agricultural managers apply economies of scale, by combining many small and medium sized parcels of land as if these parcels were one large ranch. In addition, a substantial wine industry has been developed in the City and the surrounding area. Approximately __ acres of land are planted with grapevines. As of January, 2002 there are currently fifteen (15) 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 F-9 TEMRDA APPENDIX Fe.wpd/BF/388 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 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 3 high schools (including a continuation school), 4 middle schools, 3 charter schools, 2 home-schooling programs, 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 148 square miles. Approximately 18,980 students (Grades K-12) are currently enrolled in the District. The University of Califomia, Riverside has opened an extension center in the City and Mt. San Jacinto Community College operates a campus ten miles north of the 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 Bemardino (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 is 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 67,000 residents as of July 1, 2001, when Temecula welcomed the annexation of the Vail Ranch area. Currently, the price for a new home in Temecula is approximately $214,000. The median price for an existing home in 2000 was $234,000, which represented a 19% increase. Houses also got bigger. According to data from MarketPoint Realty Advisors, the average new home size in March 2000 was 2,436 square feet, compared to 2,242 square feet in 1999 - an 8.7% increase. The California Association of Realtors identified Temecula as one of the top three growth areas in the state - along with Sacramento and the central coastal region. From 1990-2000, the city's housing stock increased by 7,875 (up 73.9% ), with all but 716 of the new units being single-family homes. F- 10 TEMRDA APPENDIX Fe.wpd/BF/388 INDENTURE OF TRUST INDENTURE OF TRUST by and between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA and U.S. BANK, N.A., as Trustee Dated as of April 1, 2002 Relating to: $. Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds TABLE OF CONTENTS ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION Section 1.01. Definitions ............................................................................................................................ 3 Section 1.02. Rules of Construction ........................................................................................................ 12 ARTICLE II AUTHORIZATION AND TERMS OF 2002 BONDS Section 2.01. Authorization and Purpose of 2002 Bonds ........................................................................ 14 Section 2.02. Terms of the 2002 Bonds .................................................................................................. 14 Section 2.03. Redemption of 2002 Bonds ............................................................................................... 15 Section 2.04. Form of 2002 Bonds; Authentication and Delivery ............................................................ 17 Section 2.05. Transfer of 2002 Bonds ..................................................................................................... 18 Section 2.06. Exchange of 2002 Bonds ................................................................................................... 18 Section 2.07. Registration Books ............................................................................................................. 18 Section 2.08. Temporary Bonds .............................................................................................................. 19 Section 2.09. Bonds Mutilated, Lost, Destroyed or Stolen ....................................................................... 19 Section 2.10. Use of Depository .............................................................................................................. 19 ARTICLE III DEPOSIT AND APPLICATION OF PROCEEDS OF 2002 BONDS ISSUANCE OF PARITY DEBT Section 3.01. Issuance of 2002 Bonds .................................................................................................... 22 Section 3.02. Deposit and Application of Proceeds ................................................................................. 22 Section 3.03. Costs of Issuance Fund ..................................................................................................... 22 Section 3.04. Project Fund ...................................................................................................................... 22 Section 3.05. Issuance of Parity Debt ...................................................................................................... 23 Section 3.06. Issuance of Subordinate Debt ........................................................................................... 24 Section 3.07. Validity of Bonds ................................................................................................................ 24 ARTICLE IV SECURITY OF BONDS; FLOW OF FUNDS; INVESTMENTS Section 4.01. Security of Bonds; Equal Security ...................................................................................... 25 Section 4.02. Special Fund; Deposit of Tax Revenues ........................................................................... 25 Section 4.03. Debt Service Fund; Transfer of Amounts to Trustee ......................................................... 25 Section 4.04. Investment By Trustee of Moneys in Funds ...................................................................... 27 Section 4.05. Valuation and Disposition of Investments .......................................................................... 28 ARTICLE V OTHER COVENANTS OF THE AGENCY Section 5.01. Punctual Payment .............................................................................................................. 30 Section 5.02. Limitation on Superior Debt ............................................................................................... 30 Section 5.03. Payment of Claims ............................................................................................................. 30 Section 5.04. Books and Accounts .......................................................................................................... 30 Section 5,05. Protection of Security and Rights; Pass-Through Agreements ......................................... 30 Section 5.06. Payments of Taxes and Other Charges ............................................................................ 31 Section 5.07. Extension of Payment ........................................................................................................ 31 Section 5.08. Disposition of Property ....................................................................................................... 31 Section 5.09. Maintenance of Tax Increment Revenues ......................................................................... 31 Section 5.10. Payment of Expenses; Indemnification ............................................................................. 31 -i- Section 5.11. Tax Covenants Relating to 2002 Bonds ............................................................................ 32 Section 5.12. Annual Review of Tax Revenues ....................................................................................... 32 Section 5.13. Continuing Disclosure ........................................................................................................ 32 Section 5.14. Further Assurances ........................................................................................................... 33 ARTICLE VI THE TRUSTEE Section 6.01. Duties, Immunities and Liabilities of Trustee ..................................................................... 34 Section 6.02. Merger or Consolidation .................................................................................................... 35 Section 6.03. Liability of Trustee .............................................................................................................. 35 Section 6.04, Right to Rely on Documents .............................................................................................. 36 Section 6.05 Preservation and Inspection of Documents ....................................................................... 37 Section 6.06. Compensation and Indemnification ................................................................................... 37 Section 6.07. Accounting Records and Financial Statements ................................................................. 37 Section 6.08, Appointment of Co-Trustee or Agent ................................................................................. 38 ARTICLE VII MODIFICATION OR AMENDMENT OF THIS INDENTURE Section 7.01. Amendment With Consent of Owners ............................................................................... 39 Section 7.02. Effect of Supplemental Indenture ...................................................................................... 39 Section 7.03. Endorsement or Replacement of Bonds After Amendment .............................................. 40 Section 7.04. Amendment by Mutual Consent ........................................................................................ 40 Section 7.05. Trustee's Reliance ............................................................................................................. 40 ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES OF OWNERS Section 8.01. Events of Default ............................................................................................................... 41 Section 802. Application of Funds Upon Default .................................................................................... 41 Section 8.03. Power of Trustee to Control Proceedings .......................................................................... 42 Section 8.04. Limitation on Owners' Right to Sue ................................................................................... 42 Section 8.05. Non-waiver ......................................................................................................................... 43 Section 8.06. Actions by Trustee as Attorney-in-Fact .............................................................................. 43 Section 8.07. Remedies Not Exclusive .................................................................................................... 43 ARTICLE IX MISCELLANEOUS Section 9.01. Benefits Limited to Parties ................................................................................................. 44 Section 9.02. Successor is Deemed Included in All References to Predecessor ................................... 44 Section 9.03. Defeasance of Bonds ........................................................................................................ 44 Section 9.04. Execution of Documents and Proof of Ownership by Owners ........................................... 45 Section 9.05. Disqualified Bonds ............................................................................................................. 45 Section 9.06. Waiver of Personal Liability ................................................................... ............................ 45 Section 9.07. Destruction of Canceled Bonds ......................................................................................... 45 Section 9.08. Notices ............................................................................................................................... 45 Section 9.09. CUSIP Numbers ................................................................................................................ 46 Section 9.10. Partial Invalidity .................................................................................................................. 46 Section 9.11. Unclaimed Moneys ............................................................................................................ 46 Section 9.12. Payment on Business Days ............................................................................................... 46 Section 9.13. Article and Section Headings and References .................................................................. 46 Section 9.14. Execution in Counterparts ................................................................................................. 47 Section 9.15. Governing Law ................................................................................................................... 47 EXHIBIT A - FORM OF 2002 BONDS -ii- INDENTURE OF TRUST THIS INDENTURE OF TRUST (this "Indenture"), dated as of April 1, 2002, is by and between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body corporate and politic duly organized and existing under the laws of the State of California (the "Agency"), and U.S. BANK, N.A., a national banking association organized and existing under the laws of the United States of America, as trustee (the "Trustee"). RECITALS: WHEREAS, the Agency is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Redevelopment Law"), including the power to issue bonds for any of its corporate purposes; and WHEREAS, a redevelopment plan (the "Redevelopment Plan") for the Agency's Temecula Redevelopment Project No. 1 (the "Redevelopment Project") has been adopted under the Redevelopment Law pursuant to all applicable requirements of the Redevelopment Law; and WHEREAS, the Agency has determined to issue its $ aggregate initial principal amount of Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds (the "2002 Bonds") under the provisions of the Redevelopment Law to refund on a current basis the Agency's Temecula Redevelopment Project No. 1 1993 Tax Allocation Bonds, Series A (the "Prior Bonds"), to discharge an obligation of the Agency to the County of Riverside under an Amended and Restated Agreement Between the County of Riverside, the Redevelopment Agency of the County of Riverside, the City of Temecula and the Redevelopment Agency of the City of Temecula for Reimbursement and Distribution of Tax Increment Funds from the Temecula Redevelopment Project, dated January 22, 2002 (consisting of the payment to the County of $6,000,000), and to finance redevelopment activities within or of benefit to the Redevelopment Project; and WHEREAS, in order to provide for the authentication and delivery of the 2002 Bonds, to establish and declare the terms and conditions upon which the 2002 Bonds ara to be issued and secured and to secure the payment of the principal thereof and interest and redemption premium (if any) thereon, the Agency and the Trustee have duly authorized the execution and delivery of this Indenture; and WHEREAS, the Agency has determined that all acts and proceedings required by law necessary to make the 2002 Bonds, when executed by the Agency, authenticated and deliverad by the Trustee and duly issued, the valid, binding and legal special obligations of the Agency, and to constitute this Indenture a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done or taken. AGREEMENT: NOW, THEREFORE, in order to secure the payment of the principal of and the interest and redemption premium (if any) on all the Outstanding Bonds (as such terms are defined herein) under this Indenture according to their tenor, and to secure the performance and observance of all the covenants and conditions therein and herein set forth, and to declare the -1- terms and conditions upon and subject to which the Bonds are to be issued and received, and in consideration of the premises and of [he mutual covenants herein contained and of the purchase and acceptance of the Bonds by the Owners thereof, and for other valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Agency and the Trustee do hereby covenant and agree with one another, for the benefit of the respective Owners from time to time of the Bonds, as follows: -2- ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION Section 1.01. Definitions. Unless the context otherwise requires, the capitalized terms used in this Indenture, or any Supplemental Indenture, shall have the respective meanings which are given such terms in this Section 1.01. "Additional Allowance" means, as of the date of calculation, the sum of the following: (a) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to either (i) construction which has been completed but has not yet been reflected on the tax roll, or (ii) transfer of ownership or any other interest in real properly, which is not then reflected on the tax rolls; and (b) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to inflation at an assumed annual inflation rate equal to the lesser of (i) the annual rate of inflation for the preceding twelve-month period for which figures are available or (ii) two percent (2%), but only if the rate of inflation had increased by at least two percent (2%) in each of the preceding three Fiscal Years; and (c) an amount equal to the estimated earnings on amounts in the Reserve Account in the next succeeding Fiscal Year based upon the amount that is expected to be on deposit in the Reserve Account following the issuance of the then proposed Parity Debt (not to exceed the amount of the Reserve Requirement) and an interest rate equal to the lesser of the rate at which amounts in the Reserve Account are then invested or five percent (5%) per annum. For purposes of this definition, the term "increases in the assessed valuation" means the amount by which the assessed valuation of taxable property in the Project Area in the next succeeding Fiscal Year is estimated to exceed the assessed valuation of taxable property in the Project Area (as reported by the County Auditor-Controller) in the Fiscal Year in which such calculation is made. "Agency" means the Redevelopment Agency of the City of Temecula, a public body corporate and politic duly organized and existing under the Redevelopment Law. "Annual Debt Service" means, for each Bond Year, the sum of (a) the interest payable on the Outstanding Bonds in such Bond Year, and (b) the principal amount of the Outstanding Bonds scheduled to be paid in such Bond Year upon the maturity or mandatory Sinking Account redemption thereof. "Bond Counsel" means (a) Quint & Thimmig LLP, or (b) any other attorney or firm of attorneys appointed by or acceptable to the Agency of nationally-recognized experience in the issuance of obligations the interest on which is excludable from gross income for federal income tax purposes under the Tax Code. -3- "Bond Year" means any twelve-month period beginning on August 2 in any year and extending to the next succeeding August 1, both dates inclusive; except that the first Bond Year shall begin on the Closing Date and end on August 1, 2002. "Bonds" means, collectively, the 2002 Bonds and any Parity Debt. "Business Day" means a day of the year (other than a Saturday or Sunday) on which banks in California, are not required or permitted to be closed, and on which the New York Stock Exchange is open. "Business Inventory Tax Subvention" means all amounts payable by the State to the Agency under and pursuant to the provisions of Chapter 1.5 of Part 1 of Division 4 of Title 2 (commencing with Section 16110) of the Government Code of the State. "Certificate of the Agency" means a certificate in writing signed by the Chairman, Executive Director, Treasurer or Secretary of the Agency, or any other officer of the Agency duly authorized by the Agency for that purpose. "City" means the City of Temecula, a municipal corporation organized and existing under the laws of the State. "Closing Date" means April __, 2002, being the date on which the 2002 Bonds are delivered by the Agency to the Original Purchaser. "Continuinq Disclosure Certificate" shall mean that certain Continuing Disclosure Certificate executed by the Agency and dated the date of issuance and delivery of the 2002 Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. "Costs of Issuance" means all items of expense directly or indirectly payable by or reimbursable to the Agency relating to the authorization, issuance, sale and delivery of the Bonds and the refunding of the Prior Bonds, including but not limited to the fees and expenses of the Original Purchaser, printing expenses, filing and recording fees, initial fees, expenses and charges of the Trustee and its counsel, including the Trustee's first annual administrative fee, acceptance fees, fees, charges and disbursements of attorneys, financial advisors, fiscal consultants, accounting firms, other consultants and other professionals, fees and charges for preparation, execution and safekeeping of the Bonds, rating agency fees, municipal bond and any surety bond insurance premiums, costs of any escrow verification agent and of the Escrow Bank, and otherwise related to the call and redemption of the Prior Bonds, and any other cost, charge or fee in connection with the original issuance of the Bonds and the refunding of the Prior Bonds. "Costs of Issuance Fund" means the fund by that name established and held by the Trustee pursuant to Section 3.03. "County" means the County of Riverside, a county duly organized and existing under the Constitution and laws of the State. "County Obli,qation" means the obligations of the Agency to the County under the agreement entitled Amended and Restated Agreement Between the County of Riverside, the Redevelopment Agency of the County of Riverside, the City of Temecula and the Redevelopment Agency of the City of Temecula for Reimbursement and Distribution of Tax Increment Funds From the Temecula Redevelopment Project, dated January 22, 2002, among the Agency, the City, the County, and the Redevelopment Agency of the County of Riverside. "Debt Service Fund" means the fund by that name established and held by the Trustee pursuant to Section 4.03. "Defeasance Securities" means any of the following, or any combination thereof: (a) cash, (b) non-callable direct obligations of the United States of America ("Treasuries"), (c) evidences of ownership of proportionate interests in future interest and principal payments on Treasuries held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor and the underlying Treasuries are not available to any person claiming through the custodian or to whom the custodian may be obligated, (d) pre-refunded municipal obligations rated "AAA" and "Aaa" by S&P and Moody's, respectively (or any combination thereof), or (e) Federal Securities. "Escrow Bank" means U.S. Bank, N.A., in its capacity as the Escrow Bank under the Escrow Agreement. "Escrow Agreement" means the Escrow Deposit and Trust Agreement, dated as of April 1, 2002, between the Agency and the Escrow Bank. "Event of Default" means any of the events described in Section 8.01. "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 Tax 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 Tax Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Tax 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: (a) any direct general obligations of the United States of America (including obligations issued or held in book entry form on the books of the Department of the Treasury of the United States of America), the payment of principal of and interest on which are unconditionally and fully guaranteed by the United States of America; (b) obligations of any agency or department of the United States of America which represent the full faith and credit of the United States of America or the timely payment of the principal of and interest on which are secured or guaranteed by the full faith and credit of the United States of America; and (c) any obligations issued by the State or any political subdivision thereof the payment of the principal of and interest and premium (if any) on which are fully secured by Federal Securities described in the preceding clauses (a) or (b). -5- "Fiscal Year" means any twelve-month period beginning on July 1 in any year and extending to the next succeeding June 30, both dates inclusive, or any other twelve-month period selected and designated by the Agency as its official fiscal year period pursuant to a Certificate of the Agency filed with the Trustee. "Indenture" means this Indenture of Trust by and between the Agency and the Trustee, as amended or supplemented from time to time pursuant to any Supplemental Indenture entered into pursuant to the provisions hereof. "Independent Accountant" means any accountant or firm of such accountants duly licensed or registered or entitled to practice and practicing as such under the laws of the State, appointed by or acceptable to the Agency, and who, or each of whom: (a) is in fact independent and not under domination of the Agency; (b) does not have any substantial interest, direct or indirect, with the Agency; and (c) is not connected with the Agency as an officer or employee of the Agency, but who may be regularly retained to make reports to the Agency. "Independent Redevelopment Consultant" means any consultant or firm of such consultants appointed by or acceptable to the Agency and who, or each of whom: (a) is judged by the Agency to have experience in matters relating to the collection of Tax Increment Revenues or otherwise with respect to the financing of redevelopment projects; (b) is in fact independent and not under domination of the Agency; (c) does not have any substantial interest, direct or indirect, with the Agency other than as the Original Purchaser; and (d) is not connected with the Agency as an officer or employee of the Agency, but who may be regularly retained to make reports to the Agency. "Information Services" means Financial Information, Inc.'s "Daily Called Bond Service", 30 Montgomery Street, 10th Floor, Jersey City, New Jersey 07302, Attention: Editor; Moody's "Municipal and Government," 5250 77 Center Drive, Suite 150, Charlotte, NC 28217, Attention: Called Bonds Department; Kenny S&P, 55 Water Street, 45th Floor, New York, New York 10041, Attention: Notification Department; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such other services providing information with respect to the redemption of bonds as the Agency may designate in a Request of the Agency delivered to the Trustee. "Interest Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(a). "Interest Payment Date" means August 1, 2002, and each February 1 and August 1 thereafter until the earlier of the redemption or maturity of the Bonds. "Maximum Annual Debt Service" means, as of the date of calculation, the largest amount obtained by totaling, for the current or any future Bond Year, the sum of (a) the amount of interest payable on the Bonds in such Bond Year, assuming that principal thereof is paid as scheduled and that any mandatory sinking fund payments are made as scheduled, and (b) the amount of principal payable on the Bonds in such Bond Year, including any principal required to be prepaid by operation of mandatory sinking fund payments. For purposes of such calculation there shall be excluded the principal of and interest on any Parity Debt to the extent the proceeds thereof are then deposited in an escrow fund from which amounts may not be released to the Agency unless the amount of Tax Increment Revenues for the most recent Fiscal Year (as evidenced in a written document from an -6- appropriate official of the Agency), plus at the option of the Agency the Additional Allowance, at least equals one hundred thirty percent (130%) of the sum of the amount of Maximum Annual Debt Service on the Bonds, and any Parity Debt (a portion of the proceeds of which were deposited to such escrow fund) which would result if the amount on deposit in the escrow fund were to be applied to redeem such Parity Debt. "Minimum Rating" means, with respect to any Permitted Investment that requires a Minimum Rating, a long-term rating of "A" or better from S&P or a shod-term rating which is in the highest general rating category of S&P, in any event determined without regard to any refinement or gradation of such rating by a numerical modifier, a plus or a minus sign, or otherwise. "Moody's" means Moody's Investors Service of New York, New York, and its successors. "Office" means the corporate trust office of the Trustee at the location identified in Section 9.08 hereof, or at such other place or places as may be designated by the Trustee from time to time in written notice filed with the Agency. "Original Purchaser" means Stone & Youngberg LLC, as original purchaser of the 2002 Bonds. "Outstandinq", when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 9.05) all Bonds except: (a) Bonds theretofore canceled by the Trustee or surrendered to the Trustee for cancellation; (b) Bonds paid or deemed to have been paid within the meaning of Section 9.03; and (c) Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed, issued and delivered by the Agency and authenticated by the Trustee pursuant hereto. "Owner" means, with respect to any Bond, the person in whose name the ownership of such Bond shall be registered on the Registration Books. "Parity Debt" means, collectively (a) any loans, bonds, notes, advances or indebtedness payable from Tax Increment Revenues on a parity with the 2002 Bonds issued or incurred pursuant to and in accordance with the provisions of the first paragraph of Section 3.05, and (b) any Refunding Debt issued or incurred in accordance with the provisions of the second paragraph of Section 3.05. "Parity Debt Instrument" means any resolution, indenture of trust, trust agreement or other instrument authorizing the issuance and/or execution and delivery of any Parity Debt. "Participating Underwriter" shall have the meaning ascribed thereto in the Continuing Disclosure Certificate. "Pass-Throuqh Agreements" means, collectively, the following agreements: (a) Amended and Restated Agreement Between the County of Riverside, the Redevelopment Agency of the County of Riverside, the City of Temecula and the Redevelopment Agency of the City of Temecula for Reimbursement and Distribution of Tax Increment Funds from the Temecula Redevelopment Project, dated January 22, 2002; (b) Cooperation Agreement Between The Mt. San Jacinto Community College District, The County of Riverside and The Redevelopment Agency for the County of Riverside, dated August 23, 1988; (c) Cooperation Agreement Between the Temecula Public Cemetery District, The County of Riverside and The -7- Redevelopment Agency for the County of Riverside, dated August 1, 1988; (d) Cooperation Agreement Between Temecula Valley Unified School District, the County of Riverside and the Redevelopment Agency for the County of Riverside, dated April 17, 1991; (e) Cooperation Agreement Between the County Service Area No. 75, the County of Riverside and the Redevelopment Agency For the County of Riverside, dated August 4, 1988; (f) Cooperation Agreement Between the Eastern Municipal Water District, the County of Riverside and the Redevelopment Agency for the County of Riverside, dated October 3, 1988; and (g) Cooperation Agreement Between the Riverside County Flood Control and Water Conservation District, the County of Riverside and the Redevelopment Agency For the County of Riverside, dated November 1, 1988. "Permitted Investments" means any of the following which at the time of investment are legal investments under the laws of the State for the moneys proposed to be invested therein (provided, however, that the Trustee shall have no duty to determine such legality of any such investment, and may conclusively rely on a representation of the Agency with respect thereto), but only to the extent that the same are acquired at Fair Market Value: (a) direct obligations of the United States of America (including obligations issued or held in book-entry form on the books of the Department of the Treasury of the United States of America) or obligations the timely payment of which are fully guaranteed by the United States of America or any certificates, receipts, securities or other obligations evidencing ownership or the right to receive a specified portion of payments to be made on any such security; (b) obligations, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following: Banks for Cooperatives, Federal Intermediate Credit Banks, Federal Farm Credit Bank, Federal Home Loan Bank System, Export-Import Bank of the United States, Federal Financing Bank, Federal Land Banks, Government National Mortgage Association, Farmer's Home Administration, Federal Home Loan Mortgage Corporation or Federal Housing Administration; or by any agency, department or instrumentality of the United States if such obligations are rated within the top two ratings of a nationally recognized rating service; (c) bonds of the State or of any county or city or other political subdivision of the State, and other obligations the interest on which is excluded from gross income for federal income tax purposes, for which a nationally recognized rating service is maintaining a rating within the top two ratings of such rating service; (d) repurchase agreements with banks (including the Trustee), lead banks of parent holding companies, or savings and loan associations, with a combined capital and surplus aggregating at least fifty million dollars ($50,000,000) and the unsecured securities of which are rated by a nationally recognized rating service within the top two ratings of such rating service, or secured by a letter of credit issued by such bank, lead bank or savings and loan association, or the underlying securities of which are obligations described in clause (a) or (b) of this definition provided that such collateral security continuously has a market value (valued at least quarterly) at least equal to the repurchase price from time to time payable with respect thereto, so long as such underlying obligations or securities are in the possession of the Trustee and provided further that, as evidenced by an opinion of counsel, the Trustee shall have a perfected security interest in such collateral security, free and clear of any third-party claims; -8- (e) interest-bearing banker's acceptances, investment agreements, demand or time deposits (including certificates of deposit) and guaranteed investment contracts in or with banks (including the Trustee and its affiliates) and savings and loan associations, provided such deposits are either (i) secured at all times, in the manner and to the extent provided by law, by collateral security (described in clauses (a) or (b) of this definition) of a market value of no less than the amount of moneys so invested or (ii), in or with banks (including the Trustee and its affiliates) or savings and loan associations having a combined capital and surplus of at least fifty million dollars ($50,000,000) and whose rating, or the rating of its parent holding company, is within the top two ratings of a nationally recognized rating service or (iii) fully insured by the Federal Deposit Insurance Corporation; (f) taxable government money market funds, including funds for which the Trustee and its affiliates provide investment advisory or other management services, rated in the highest rating category by S&P or whose portfolios are restricted to obligations with maturities of one year or less, issued or guaranteed as to payment of principal and interest by the full faith and credit of the United States of America, or consisting of securities designated in clause (b) of this definition, or (ii) such obligations or repurchase agreements fully collateralized by obligations with an average maturity of one year or less issued or guaranteed as to payment of principal by the full faith and credit of the United States of America if, in the case of this clause (f) only, such portfolio is rated in the top rating category of a national rating agency; (g) obligations the interest on which is excludable from gross income for purposes of federal income taxation and the timely payment of the principal of and interest on which is fully provided for by the deposit in trust or escrow of cash or obligations described in clause (a), (b) or (e) of this definition (not callable by the issuer thereof prior to maturity) and the trust or escrow instructions for which cannot be amended to provide for redemption of such obligations prior to the date set forth in the trust or escrow agreement governing such deposit and are rated by each rating agency then rating the Bonds in its highest rating category; and (h) the Local Agency Investment Fund of the State, created pursuant to section 16429.1 of the California Government Code, to the extent the Trustee is authorized to register such investment in its name. "Plan Limitations" means the limitations contained or incorporated in the Redevelopment Plan on (a) the aggregate principal amount of indebtedness payable from Tax Increment Revenues which may be outstanding at any time, (b) the aggregate amount of taxes which may be divided and allocated to the Agency pursuant to the Redevelopment Plan, (c) the period of time for establishing indebtedness payable from Tax Increment Revenues, and (d) the period of time for repaying indebtedness payable from Tax Increment Revenues. Plan limitations shall also include those imposed under the Judgement, dated June 5, 1991, entered by the Superior Court of the State of California for the County of Riverside (the "Court") in Case No. 194468MF194948, Dawes v. the Redevelopment Agency of the County of Riverside, as modified by the Modification of Judgement, entered by the Court in 1995, and as it may be further modified by the Court. "Principal Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(b). -9- "Prior Bonds" means the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 1993 Tax Allocation Bonds, Series A, issued and outstanding under the Prior Indenture. "Prior Indenture" means the Trust Indenture, dated as of February 1, 1993, between the Agency and U.S. Bank, N.A., as successor to Bank of America National Trust and Savings Association, as trustee. "Private Business Use" means use directly or indirectly in a trade or business carried on by a natural person or in any activity carried on by a person other than a natural person, excluding use by a governmental unit and use by any person as a member of the general public. "Project Area" means the Redevelopment Project area described in the Redevelopment Plan. "Project Fund" means the fund by that name established and held by the Trustee pursuant to Section 3.04. "Qualified Reserve Account 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 Trustee pursuant to Section 4.03(d), provided that all of the following requirements are met: (a) the long-term credit rating or claims paying ability of such bank or insurance company is in one of the three 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 4.03(d,); and (d) the Trustee is authorized pursuant to the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Interest Account, the Principal Account or the Sinking Account for the purpose of making payments required pursuant to Section 4.03. "Record Date" means, with respect to any Interest Payment Date, the close of business on the fifteenth (15th) calendar day of the month preceding such Interest Payment Date, whether or not such fifteenth (15th) calendar day is a Business Day. "Redemption Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(e). "Redevelopment Law" means the Redevelopment Law of the State, constituting Part 1 of Division 24 of the Health and Safety Code of the State, and the acts amendatory thereof and supplemental thereto. "Redevelopment Plan" means the Redevelopment Plan for the Temecula Redevelopment Project No. 1 of the Agency, approved by Ordinance No. 658 enacted, by the Board of Supervisors of the County on July 12, 1988, and subsequently amended by Ordinance Nos. 91-15 and 94-33, adopted by the City Council of the City on April 9, 1991 and December 20, 1994, respectively, together with any further amendments to any of such Redevelopment Plans hereafter duly authorized pursuant to the Redevelopment Law. -10- "Redevelopment Proiect" means the undertaking of the Agency pursuant to the Redevelopment Plan and the Redevelopment Law for the redevelopment of the project area described in the Redevelopment Plan. "Refunding Debt" means any loan, bond, note, advance or indebtedness the proceeds thereof are used to refund all or a portion of any Parity Debt (and to pay costs of issuance of and fund a reserve fund for such Refunding Debt), and the debt service due on such Refunding Debt in any Bond Year in which the Refunding Debt is Outstanding is not greater than the debt service due in such Bond Year on the portion of the Parity Debt refunded with the proceeds of such Refunding Debt. "Re,qistration Books" means the records maintained by the Trustee pursuant to Section 2.07 for the registration and transfer of ownership of the Bonds. "Report" means a document in writing signed by an Independent Accountant or an Independent Redevelopment Consultant and including: (a) a statement that the person or firm making or giving such Report has read the pertinent provisions of this Indenture to which such Report relates; (b) a brief statement as to the nature and scope of the examination or investigation upon which the Report is based; and (c) a statement that, in the opinion of such person or firm, sufficient examination or investigation was made as is necessary to enable such person or firm to express an informed opinion with respect to the subject matter referred to in the Report. "Request of the Agency" means a request in writing signed by the Chairman, Executive Director, Treasurer or Secretary of the Agency, or any other officer of the Agency duly authorized by the Agency for that purpose. "Reserve Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(d). "Reserve Requirement" means, as of the date of any calculation by the Agency, the least of (a) Maximum Annual Debt Service, or (b) one hundred twenty-five percent (125%) of average Annual Debt Service, or (c) ten percent (10%) of the initial principal amount of the Bonds. "Securities Depositories" means The Depository Trust Company 711 Stewart Avenue, Garden City, New York 11530, Fax-(516) 227-4039 or 4190; Kenny S&P, 55 Water Street, 50 h 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 Agency may designate in a Request of the Agency delivered by the Agency to the Trustee. "Sinkin,q Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(c). "Special Fund" means the fund by that name established and held by the Agency pursuant to Section 4.02. "S&P" means Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., New York, New York, and its successors. "State" means the State of California. "Subordinate Debt" means any loans, advances or indebtedness issued or incurred by the Agency in accordance with the requirements of Section 3.06, which are either: (i) payable from, but not secured by a pledge of or lien upon, the Tax Increment Revenues; or (ii) secured by a pledge of or lien upon the Tax Increment Revenues which is subordinate to the pledge of and lien upon the Tax Increment Revenues hereunder for the security of the Bonds. "Supplemental Indenture" means any resolution, agreement or other instrument which amends, supplements or modifies this Indenture and which has been duly adopted or entered into by the Agency; but only if and to the extent that such Supplemental Indenture is specifically authorized hereunder. "Tax 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 Tax Code (including the Tax Regulations). "Tax Increment Revenues" means all taxes annually allocated and paid to the Agency with respect to the Project Area pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Redevelopment Law and Section 16 of Article XVI of the Constitution of the State including all payments, subventions and reimbursements (if any) to the Agency specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations; but excluding (a) amounts of such taxes required to be deposited into the Low and Moderate Income Housing Fund of the Agency in any Fiscal Year pursuant to Section 33334.3 of the Redevelopment Law to the extent not eligible under the Redevelopment Law for the payment of debt service on the Bonds, (b) all amounts of such taxes required to be paid by the Agency pursuant to any Pass-Through Agreement (to the extent that the payments thereunder are not subordinated to the Agency's obligation to repay the Bonds), and (c) the Business Inventory Tax Subvention. [add Rectifier agreement unless no further Agency obligations thereunder] "Tax Regulations" means temporary and permanent regulations promulgated under Section 103 and all related provisions of the Tax Code. "Tax Revenue Certificate" means a Certificate of the Agency identifying the amount of all Tax Increment Revenues received or to be received by the Agency in the then current Fiscal Year. "Term Bonds" means, collectively, (a) the 2002 Bonds maturing on August 1, __ and August 1, , and (b) any maturity of Parity Debt which is subject to mandatory Sinking Account redemption pursuant to the Parity Debt Instrument authorizing the issuance thereof. "Trustee" means U.S. Bank, N.A., as Trustee hereunder, or any successor thereto appointed as Trustee hereunder in accordance with the provisions of Article VI. "2002 Bonds" means the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds issued and Outstanding under this Indenture. Section '1.02. Rules of Construction. All references herein to "Articles", "Sections" and other subdivisions are to the corresponding Adicles, Sections or subdivisions of this Indenture, and the words "herein", "hereof", "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subdivision hereof. ARTICLE II AUTHORIZATION AND TERMS OF 2002 BONDS Section 2.01. Authorization and Purpose of 2002 Bonds. The Agency has reviewed al! proceedings heretofore taken and has found, as a result of such review, and hereby finds and determines that all things, conditions and acts required by law to exist, happen or be performed precedent to and in connection with the issuance of the 2002 Bonds do exist, have happened and have been performed in due time, form and manner as required by law, and the Agency is now duly empowered, pursuant to each and every requirement of law, including the Redevelopment Law, to issue the 2002 Bonds in the manner and form provided in this Indenture. 2002 Bonds in the aggregate initial principal amount of Million Dollars ($ ) are hereby authorized to be issued by the Agency under the Redevelopment Law for the purpose of making deposits to the Interest Account, the Project Fund, the Costs of Issuance Fund, the Reserve Account and the Escrow Fund, all as provided in Section 3.02. The 2002 Bonds shall be authorized and issued under, and shall be subject to the terms of, this Indenture and the Redevelopment Law. The 2002 Bonds shall be designated the "Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds." Section 2.02. Terms of the 2002 Bonds. The 2002 Bonds shall be issued in fully registered form without coupons in denominations equal to $5,000 or any integral multiple thereof. No 2002 Bond shall have more than one maturity date. The 2002 Bonds shall be dated the Closing Date, and shall be in the principal amounts, shall mature on August 1 in the years, and shall bear interest (calculated on the basis of a 360-day year comprised of twelve 30~day months) at the respective rates of interest per annum as follows: Maturity Date (Auqust 1) Principal Amount Interest Rate [to come] Interest on the 2002 Bonds shall be payable from the Interest Payment Date next preceding the date of authentication thereof unless (i) a 2002 Bond is authenticated on or -14- before an Interest Payment Date and after the close of business on the preceding Record Date, in which event it shall bear interest from such Interest Payment Date, (ii) a 2002 Bond is authenticated on or before the Record Date preceding the first Interest Payment Date, in which event interest thereon shall be payable from the Closing Date, or (iii) interest on any 2002 Bond is in default as of the date of authentication thereof, in which event interest thereon shall be payable from the date to which interest has been paid in full, payable on each Interest Payment Date. Interest shall be paid on each Interest Payment Date to the persons in whose names the ownership of the 2002 Bonds is registered on the Registration Books at the close of business on the immediately preceding Record Date, except as provided below. Interest on any 2002 Bond which is not punctually paid or duly provided for on any Interest Payment Date shall be payable to the person in whose name the ownership of such 2002 Bond is registered on the Registration Books at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee, notice of which shall be given to such Owner not less than ten (10) days prior to such special record date. Interest on the 2002 Bonds shall be paid by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the 2002 Bonds at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date; provided, however, that at the written request of the Owner of Bonds in an aggregate principal amount of at least $1,000,000, which written request is on file with the Trustee as of any Record Date, and as otherwise provided in Section 2.10, interest on the applicable Bonds shall be paid on each succeeding Interest Payment Date by wire transfer in immediately available funds to such account within the United States of America as shall be specified in such written request (any such written request shall remain in effect until rescinded in writing by the Owner). The principal of and premium (if any) on the 2002 Bonds shall be payable in lawful money of the United States of America by check of the Trustee upon presentation and surrender thereof at the Office of the Trustee. Section 2,03. Redemption of 2002 Bonds. (a) Optional Redemption of 2002 Bonds. The 2002 Bonds maturing on and after August 1, , shall be subject to redemption in whole or in part on any date at the Request of the Agency, among maturities as determined by the Agency, and in any case by lot within a maturity, on or after August 1, , at the option of the Agency from any available source of funds, at a redemption price equal to one hundred percent (100%) of the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, plus a redemption premium (expressed as a percentage of the principal amount of the Bonds to be redeemed) as set forth in the following table: Redemption Period Redemption Premium August 1,__through July 31,__ % August 1, __ and thereafter The Agency shall be required to give the Trustee written notice of its intention to redeem Bonds under this subsection (a), and the manner of selecting such Bonds for redemption from among the maturities thereof, at least forty-five (45) days prior to the date fixed for such redemption unless the Trustee otherwise agrees to a shorter period for such notice. (b) Mandatory Sinking Account Redemption of 2002 Bonds. The 2002 Bonds maturing on August 1, __ and August 1, shall also be subject to redemption in whole, or in part by lot, on August 1, __ and August 1, , respectively, and on August 1 in each year thereafter as set forth in the following tables, from Sinking Account payments made by the Agency pursuant to Section 4.03(c), at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium, or in lieu thereof shall be purchased pursuant to the succeeding paragraph of this subsection (b), in the aggregate respective principal amounts and on the respective dates as set forth in the following tables; provided, however, that if some but not all of such 2002 Bonds have been redeemed pursuant to subsection (a) above, the total amount of all future Sinking Account payments pursuant to this subsection (b) shall be reduced by the aggregate principal amount of such 2002 Bonds so redeemed, to be allocated among such Sinking Account payments in integral multiples of $5,000 as determined by the Agency (written notice of which determination shall be given by the Agency to the Trustee). 2002 Bonds Maturing August 1, __ Sinking Account Redemption Date Principal Amount (August 1) To Be Redeemed [to come] 2002 Bonds Maturing August 1, __ Sinking Account Redemption Date Principal Amount (Au,qust 1) To Be Redeemed [to come] In lieu of redemption of the 2002 Bonds pursuant to the preceding paragraph, amounts on deposit in the Special Fund (to the extent not required to be transferred to the Trustee or the trustee for any Parity Debt pursuant to any Parity Debt Instrument during the then current Bond Year) may also be used and withdrawn by the Agency at any time prior to the selection of 2002 Bonds for redemption for the purchase of such 2002 Bonds at public or private sale as and when and at such prices (including brokerage and other charges and including accrued interest) as the Agency may in its discretion determine. The par amount of any of such 2002 Bonds so purchased by the Agency in any twelve-month period ending on June 15 in any year shall be credited towards and shall reduce the par amount of 2002 Bonds required to be redeemed pursuant to this subsection (b) on August 1 in such year, upon the presentation of the purchased 2002 Bonds to the Trustee on or prior to June 15 in any year. (c) Notice of Redemption. The Trustee on behalf and at the.expense of the Agency shall mail (by first class mail, postage prepaid) notice of any redemption at least thirty (30) but not more than sixty (60) days prior to the redemption date, to (i) the Owners of any 2002 Bonds designated for redemption at their respective addresses appearing on the Registration Books, and (ii) the Securities Depositories and to one or more Information Services; provided, however, -16- that such mailing shall not be a condition precedent to such redemption and neither failure to receive any such notice nor any defect therein shall affect the validity of the proceedings for the redemption of such 2002 Bonds or the cessation of the accrual of interest thereon. Such notice shall state the redemption date and the redemption price, shall designate the CUSIP number of the 2002 Bonds to be redeemed, shall state the individual number of each Bond to be redeemed or state that all 2002 Bonds between two stated numbers (both inclusive) or shall state that all of the 2002 Bonds Outstanding of one or more maturities are to be redeemed, and shall require that such 2002 Bonds be then surrendered at the Office of the Trustee for redemption at the said redemption price, giving notice also that further interest on the 2002 Bonds to be redeemed will not accrue from and after the date fixed for redemption. Notwithstanding the foregoing, in the case of any optional redemption of the 2002 Bonds under Section 2.03(a) above, the notice of redemption shall state that the redemption is conditioned upon receipt by the Trustee of sufficient moneys to redeem the 2002 Bonds on the anticipated redemption date, and that the optional redemption shall not occur if by no later than the scheduled redemption date sufficient moneys to redeem the 2002 Bonds have not been deposited with the Trustee. In the event that the Trustee does not receive sufficient funds by the scheduled optional redemption date to so redeem the 2002 Bonds to be optionally redeemed, the Trustee shall send written notice to the Owners of the 2002 Bonds, to the Securities Depositories and to one or more of the Information Services to the effect that the redemption did not occur as anticipated, and the 2002 Bonds for which notice of optional redemption was given shall remain Outstanding for all purposes of this Indenture. (d) Partial Redemption of Bonds. In the event only a portion of any 2002 Bond is called for redemption, then upon surrender thereof the Agency shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Agency1 a new 2002 Bond or 2002 Bonds of the same interest rate and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the 2002 Bond to be redeemed. (e) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the redemption price of and interest on the 2002 Bonds so called for redemption shall have been duly deposited with the Trustee, such 2002 Bonds so called shall cease to be entitled to any benefit under this Indenture other than the right to receive payment of the redemption price and accrued interest to the redemption date, and no interest shall accrue thereon from and after the redemption date specified in such notice. (f) Manner of Redemption. Whenever provision is made in this Indenture for the redemption of less than all of the 2002 Bonds, unless othenNise provided herein, the Agency in its discretion shall determine the maturities to be redeemed by written notice to the Trustee, and the Trustee shall select the 2002 Bonds within a maturity to be redeemed by lot in any manner which the Trustee in its sole discretion shall deem appropriate. For purposes of such selection, all 2002 Bonds shall be deemed to be comprised of separate $5,000 denominations and such separate denominations shall be treated as separate 2002 Bonds which may be separately redeemed. Notwithstanding the foregoing, if for any reason the Agency fails to provide the Trustee with direction as to the maturities to be redeemed, the Trustee shall select the 2002 Bonds to be redeemed pro rata among maturities. Section 2.04. Form of 2002 Bonds; Authentication and Delivery. The 2002 Bonds, the form of Trustee's certificate of authentication, and the form of assignment to appear thereon, shall be substantially in the respective forms 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 indenture. -17- The 2002 Bonds shall be executed on behalf of the Agency by the signature of its Chairman and the signature of its Secretary who are in office on the date of execution and delivery of this Indenture or at any time thereafter. Either or both of such signatures may be made manually or may be affixed by facsimile thereof. If any officer whose signature appears on any 2002 Bond ceases to be such officer before the Closing Date, such signature shall nevertheless be as effective as if the officer had remained in office until the Closing Date. Any 2002 Bond may be signed and attested on behalf of the Agency by such persons as at the actual date of the execution of such 2002 Bond shall be the proper officers of the Agency, duly authorized to execute debt instruments on behalf of the Agency, although on the date of such 2002 Bond any such person shall not have been such officer of the Agency. Only such of the 2002 Bonds as shall bear thereon a certificate of authentication in the form set forth in Exhibit A, manually executed and dated by the Trustee, shall be valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certificate of the Trustee shall be conclusive evidence that such 2002 Bonds have been duly authenticated and delivered hereunder and are entitled to the benefits of this Indenture. Section 2.05, Transfer of 2002 Bonds. Any 2002 Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by a duly authorized attorney of such person, upon presentation of such Bond to the Trustee at its Office for cancellation, accompanied by delivery of a written instrument of transfer in a form acceptable to the Trustee, duly executed. The cost of printing 2002 Bonds and any services rendered or expenses incurred by the Trustee in connection with any transfer shall be paid by the Agency. The Trustee shall collect any tax or other governmental charge on the transfer of any 2002 Bonds pursuant to this Section 2.05. Whenever any 2002 Bond or 2002 Bonds shall be surrendered for transfer, the Agency shall execute and the Trustee shall authenticate and deliver to the transferee a new 2002 Bond or 2002 Bonds of like maturity and aggregate principal amount of authorized denominations. The Trustee may refuse to transfer, under the provisions of this Section 2.05, any 2002 Bonds selected by the Trustee for redemption pursuant to Section 2.03 or any 2002 Bonds during the period in which 2002 Bonds are selected for redemption. Section 2.06, Exchange of 2002 Bonds. The 2002 Bonds may be presented for exchange at the Office of the Trustee for a like aggregate principal amount of 2002 Bonds of other authorized denominations and of the same maturity. The Trustee shall collect any tax or other governmental charge on the exchange of any 2002 Bonds pursuant to this Section 2.06. The cost of printing 2002 Bonds and any services rendered or expenses incurred by the Trustee in connection with any exchange shall be paid by the Agency. The Trustee may refuse to exchange, under the provisions of this Section 2.06, any 2002 Bonds selected by the Trustee for redemption pursuant to Section 2.03 or any 2002 Bonds during the period in which 2002 Bonds are selected for redemption. Section 2.07, Registration Books. The Trustee will keep or cause to be kept sufficient records for the registration and registration of transfer of the Bonds, which shall at all times during normal business hours, and upon reasonable notice, be open to inspection by the Agency; and, upon presentation for such purpose, the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on the Registration Books, Bonds as hereinbefore provided. Section 2.08. Temporary Bonds. The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the Agency, and may contain such reference to any of the provisions of this Indenture as may be appropriate. Every temporary Bond shall be executed by the Agency upon the same conditions and in substantially the same manner as the definitive Bonds. If the Agency issues temporary Bonds it will execute and furnish definitive Bonds without delay, and thereupon the temporary Bonds shall be surrendered for cancellation, in exchange therefor at the Office of the Trustee, and the Trustee shall 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 pursuant to this Indenture as definitive Bonds authenticated and delivered hereunder. Section 2.09. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become mutilated, the Agency, at the expense of the Owner of such Bond, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor in exchange and substitution for the Bond so mutilated, but only upon surrender to the Trustee of the Bond so mutilated. Every mutilated Bond so surrendered to the Trustee shall be canceled by it and delivered to, or upon the order of, the Agency. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee and, if such evidence be satisfactory and indemnity for the Trustee and the Agency satisfactory to the Trustee shall be given, the Agency, at the expense of the Owner, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor and series in lieu of and in substitution for the Bond so lost, destroyed or stolen. The Trustee may require payment of a sum not exceeding the actual cost of preparing each new Bond issued under this Section and of the expenses which may be incurred by the Trustee in connection therewith. Any Bond issued 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 Agency whether or not the Bond so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Indenture with all other Bonds issued pursuant to this Indenture. Notwithstanding any other provision of this Section 2.09, in lieu of delivering a new Bond for which principal has or is about to become due for a Bond which has been mutilated, lost, destroyed or stolen, the Trustee may make payment of such Bond in accordance with its terms upon receipt of the above-described indemnity. Section 2.'10. Use of Depository. Notwithstanding any provision of this Indenture to the contrary: (a) At the request of the Original Purchaser, the 2002 Bonds shall be initially issued registered in the name of "Cede & Co.," as nominee of The Depository Trust Company, the depository designated by the Original Purchaser, and shall be evidenced by one 2002 Bond for each maturity, as set forth in Section 2.02. Registered ownership of such 2002 Bonds, or any portions thereof, may not thereafter be transferred except: (i) to any successor of The Depository Trust Company or its nominee, or of any substitute depository designated pursuant to paragraph (ii) of this subsection (a) ("substitute depository"); provided that any successor of The Depository Trust Company or substitute depository shall be qualified under any applicable laws to provide the service proposed to be provided by it; -10- (ii) to any substitute depository designated in a Written Request of the Agency, upon (i) the resignation of The Depository Trust Company or its successor (or any substitute depository or its successor) from its functions as depository or (ii) a determination by the Agency that The Depository Trust Company or its successor is no longer able to carry out its functions as depository; provided that any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it; or (iii) to any person as provided below, upon (A) the resignation of The Depository Trust Company or its successor (or any substitute depository or its successor) from its functions as depository or (B) a determination by the Agency that The Depository Trust Company or its successor is no longer able to carry out its functions as depository; provided that no substitute depository which is not objected to by the Agency and the Trustee can be obtained. (b) In the case of any transfer pursuant to paragraph (i) or paragraph (ii) of subsection (a) of this Section 2.10, upon receipt of all Outstanding 2002 Bonds by the Trustee, together with a Written Request of the Agency to the Trustee, a single new 2002 Bond shall be executed and delivered, registered in the name of such successor or such substitute depository or their nominees, as the case may be, all as specified in such Written Request of the Agency. In the case of any transfer pursuant to paragraph (iii) of subsection (a) of this Section 2.10, upon receipt of all Outstanding 2002 Bonds by the Trustee together with a Written Request of the Agency, new 2002 Bonds shall be executed and delivered in such denominations and registered in the names of such persons as are requested in a Written Request of the Agency provided the Trustee shall not be required to deliver such new 2002 Bonds within a period less than sixty (60) days from the date of receipt of such a Written Request of the Agency. (c) In the case of padial redemption or an advance refunding of any 2002 Bonds evidencing all of the principal maturing in a particular year, The Depository Trust Company shall deliver the 2002 Bonds to the Trustee for cancellation and re-registration to reflect the amounts of such reduction in principal. (d) The Agency and the Trustee shall be entitled to treat the person in whose name any 2002 Bond is registered as the absolute Owner thereof for all purposes of this Indenture and any applicable laws, notwithstanding any notice to the contrary received by the Trustee or the Agency; and the Agency and the Trustee shall have no responsibility for transmitting payments to, communication with, notifying or otherwise dealing with any beneficial owners of the 2002 Bonds. Neither the Agency nor the Trustee will have any responsibility or obligations, legal or otherwise, to the beneficial owners or to any other party including The Depository Trust Company or its successor (or substitute depository or its successor), except for the registered owner of any 2002 Bond. (e) So long as all Outstanding 2002 Bonds are registered in the name of Cede & Co. or its registered assign, the Agency and the Trustee shall reasonably cooperate with Cede & Co., as sole registered Owner, or its registered assign in effecting payment of the principal and interest due with respect to the 2002 Bonds by arranging for payment in such manner that funds for such payments are properly identified and are made immediately available on the date they are due. -20- (f) So long as all Outstanding 2002 Bonds are registered in the name of Cede & Co. or its registered assign (hereinafter, for purposes of this paragraph (f), the "Owner"): (i) All notices and payments addressed to the Owners shall contain the 2002 Bonds' CUSIP number. (ii) Notices to the Owner shall be forwarded in the manner set forth in the form of Blanket Issuer Letter of Representations executed by the Agency and received and accepted by The Depository Trust Company. -21- ARTICLE Ill DEPOSIT AND APPLICATION OF PROCEEDS OF 2002 BONDS ISSUANCE OF PARITY DEBT Section 3.01. Issuance of 2002 Bonds. Upon the execution and delivery of this Indenture, the Agency shall execute and deliver the 2002 Bonds in the aggregate initial principal amount of Million Dollars ($. ) to the Trustee and the Trustee shall authenticate and deliver the 2002 Bonds to the Original Purchaser upon receipt of a Request of the Agency therefor. Section 3.02. Deposit and Application of Proceeds. On the Closing Date, the proceeds of sale of the 2002 Bonds (net of the underwriting discount) shall be paid to the Trustee and deposited by the Trustee as follows: (a) The Trustee shall deposit the amount of $ in the Project Fund. (b) The Trustee shall deposit the amount of $. in the Costs of Issuance Fund. (c) The Trustee shall deposit the amount of $ in the Reserve Account, constituting an amount equal to the Reserve Requirement as Of the Closing Date. (d) The Trustee shall transfer the amount of $ to the Escrow Bank for deposit by the Escrow Bank in the Escrow Fund established under the Escrow Agreement. The Trustee may, in its discretion, establish a temporary fund or account in its books and records to facilitate such transfers. Section 3.03. Costs of Issuance Fund. There is hereby established a separate fund to be known as the "Costs of Issuance Fund", which shall be held by the Trustee in trust. The Trustee shall deposit in the Costs of Issuance Fund the amount specified in Section 3.02(b). The moneys in the Costs of Issuance Fund shall be used and withdrawn by the Trustee from time to time to pay the Costs of Issuance upon submission of a Request of the Agency stating (a) the person to whom payment is to be made, (b) the amount to be paid, (c) the purpose for which the obligation was incurred, (d) that such payment is a proper charge against the Costs of Issuance Fund, and (e) that such amounts have not been the subject of a prior Request of the Agency. On the earlier of (i) October 1, 2002, or (ii) the date of receipt by the Trustee of a Request of the Agency therefor, all amounts (if any) remaining in the Costs of Issuance Fund shall be withdrawn therefrom by the Trustee and transferred to the Project Fund. Section 3.04. Project Fund. There is hereby established a separate fund to be known as the "Project Fund", which shall be held by the Trustee. Amounts deposited to the Project Fund pursuant to Section 3.02(a) shall be transferred by the Trustee to the Agency from time to time, upon receipt by the Trustee of a Request of the Agency which specifies the amount to be withdrawn. The Agency shall use all amounts withdrawn from the Project Fund for the satisfaction of all or a portion of the County Obligation and for the financing of the Redevelopment Project. The Agency shall maintain records as to the disposition of all amounts -22- transferred to it by the Trustee pursuant to this Section 3.04, in sufficient detail as necessary to comply with the requirements of the Redevelopment Law. Section 3.05. Issuance of Parity Debt. The Agency may issue or incur Parity Debt in such principal amount as shall be determined by the Agency, subject only to the following conditions: (a) No Event of Default shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in this Indenture. (b) Subject to paragraph (d) below, the Tax Increment Revenues for the then current Fiscal Year (based on the assessed valuation of property in the Project Area as evidenced in a written document from an appropriate official of the County) plus at the option of the Agency the Additional Allowance, shall be at least equal to one hundred thirty percent (130%) of the Maximum Annual Debt Service on the Bonds and such new Parity Debt. (c) Subject to paragraph (d) below, the issuance of such Parity Debt shall not cause the Agency to exceed any applicable Plan Limitations. Without limiting the generality of the foregoing, the Agency shall not issue or execute and deliver any Parity Debt in the event and to the extent that either (i) the sum of the aggregate amount of debt service on all outstanding obligations of the Agency payable from Tax Increment Revenues, including such Parity Debt, exceeds the aggregate amount of Tax Increment Revenues which are eligible to be allocated and paid to the Agency while such obligations remain outstanding, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Parity Debt, exceeds any applicable limit in the Redevelopment Plan on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at any one time. (d) In computing the Maximum Annual Debt Service on the Bonds for purposes of paragraph (b) above, and the debt service for purposes of paragraph (c) above, if interest on any Bonds is payable at a variable rate or is otherwise incapable of determination, (A) if the Agency has entered into a variable to fixed swap arrangement with respect to such Bonds the term of which extends for the term of such Bonds and payments by the counterparty on the swap arrangement are guaranteed or insured by an entity whose unsecured debt obligations are rated in the highest rating category by Moody's and S&P, the maximum annual debt service due by the Agency under the swap arrangement shall be used rather than the maximum annual debt service on such Bonds, or (B) the Bonds shall be assumed to bear interest at a fixed rate equal to the average of the daily interest rate on such Bonds during the three year period preceding the first daY of the month in which the determination is made (and, if such Bonds have not been outstanding for the entire 3 year period, for the portion of such time period such Bonds were not outstanding, the interest rate on a debt instrument or similar credit quality and maturity as determined by an Independent Redevelopment Consultant). (e) The related Parity Debt Instrument shall provide that: (i) Interest on such Parity Debt shall be payable on February 1 and August 1 in each year in which interest is payable on such Parity Debt except the first twelve month period, during which interest may be payable on any February 1 or August 1 and provided that there shall be no requirement that such Parity Debt pay interest on a current basis; -23- (ii) The principal of such Parity Debt shall be payable on August 1 in any year in which principal is payable; and (iii) Money (and/or a Qualified Reserve Fund Credit Instrument) shall be deposited in the Reserve Account in an amount such that the amount in the Reserve Account is equal to the Reserve Requirement in effect immediately following the issuance of the Parity Debt. (f) The Agency shall deliver to the Trustee a Certificate of the Agency certifying that the conditions precedent to the issuance of such Parity Debt set forth in subsections (a), (b), (c) and (e) above have been satisfied. Notwithstanding the foregoing, the Agency may issue or incur Refunding Debt in such principal amount as shall be determined by the Agency so long as the conditions set forth in subsections (a), (c) and (e) above are met, and the Agency delivers to the Trustee a Certificate of the Agency certifying that such conditions precedent to the issuance of such Refunding Debt set forth in subsections (a), (c) and (e) above have been met and such Refunding Debt is otherwise in accordance with the definition of Refunding Debt. Section 3.06. Issuance of Subordinate Debt. From time to time the Agency may issue or incur Subordinate Debt in such principal amount as shall be determined by the Agency; provided that (a) the Agency shall be in compliance with all of its covenants set forth in this Indenture and any Parity Debt Instruments, (b) the issuance of such Subordinate Debt (after taking into account the Bonds and all other obligations of the Agency payable from Tax Increment Revenues) shall not cause the Agency to exceed any applicable Plan Limitations, and (c) the Agency will at all times that the Bonds are Outstanding have sufficient capacity to receive Tax Increment Revenues in an amount at least equal to the remaining Debt Service on the Bonds. Section 3.07. Validity of Bonds. The validity of the authorization and issuance of the Bonds shall not be dependent upon the Redevelopment Project or upon the performance by any person of its obligation with respect to the Redevelopment Project. ARTICLE IV SECURITY OF BONDS; FLOW OF FUNDS; INVESTMENTS Section 4.0~1. Security of Bonds; Equal Security. The Bonds shall be secured by a pledge of and lien on all of the Tax Increment Revenues, without preference or priority for series, issue, number, dated date, sale date, date of execution or date of delivery. The Bonds shall be additionally secured by a first and exclusive pledge of and lien upon all of the moneys in the Reserve Account, the Special Fund, the Debt Service Fund, the Interest Account, the Principal Account, the Sinking Account and the Redemption Account. Except for the Tax Increment Revenues and amounts in the funds and accounts created hereunder including amounts in the Reserve Account and the Special Fund, no funds or properties of the Agency shall be pledged to, or otherwise liable for, the payment of principal of or interest or premium (if any) on the Bonds. In consideration of the acceptance of the Bonds by those who shall hold the same from time to time, this Indenture shall be deemed to be and shall constitute a contract between the Agency and the Owners from time to time of the Bonds, and the covenants and agreements herein set forth to be performed on behalf of the Agency shall be for the equal and proportionate benefit, security and protection of all Owners of the Bonds without preference, priority or distinction as to security or otherwise of any of the Bonds over any of the others by reason of the number or date thereof or the time of sale, execution and delivery thereof, or otherwise for any cause whatsoever, except as expressly provided therein or herein. Section 4.02. Special Fund; Deposit of Tax Revenues. There is established a special fund to be known as the "Special Fund", which is held by the Agency. The Agency shall deposit the Tax Increment Revenues received in any Bond Year in the Special Fund promptly upon receipt thereof by the Agency, until such time (if any) during any Bond Year as the amounts on deposit in the Special Fund equal the aggregate amounts required to be transferred pursuant to Section 4.03 of this Indenture in any such Bond Year; and (except as may be otherwise provided in any Parity Debt Instruments) any Tax Increment Revenues received during any such Bond Year in excess of such amounts shall be released from the pledge and lien hereunder and may be used for any lawful purposes of the Agency. Prior to the payment in full of the principal of and interest and redemption premium (if any) on the Bonds and the payment in full of all other amounts payable hereunder and under any Parity Debt Instruments, the Agency shall not have any beneficial right or interest in the moneys on deposit in the Special Fund, except only as provided in this Indenture and in any Parity Debt Instruments, and such moneys shall be used and applied as set forth herein and in any Parity Debt Instruments. Section 4.03. Debt Service Fund; Transfer of Amounts to Trustee. There is hereby established a special trust fund to be known as the "Debt Service Fund", which shall be held by the Trustee hereunder in trust. The Agency shall withdraw from the Special Fund and transfer to the Trustee amounts required to meet the Agency's obligations under this Section 4.03. Moneys so transferred by the Agency to the Trustee shall be in the following amounts at the following times, for deposit by the Trustee in the following respective special accounts within the Debt Service Fund, which accounts are hereby established with the Trustee, in the following order of priority: -25- (a) Interest Account. On or before each date on which interest on the Bonds becomes due and payable, the Agency shall withdraw from the Special Fund and transfer to the Trustee for deposit in the Interest Account an amount which, when added to the amount then on deposit in the Interest Account, will be equal to the aggregate amount of the interest becoming due and payable on the Outstanding Bonds on such date. All moneys in the Interest Account shall be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it shall become due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity pursuant to this Indenture). (b) Principal Account. On or before each date on which principal of the Bonds becomes due and payable at maturity, the Agency shall withdraw from the Special Fund and transfer to the Trustee for deposit in the Principal Account an amount which, when added to the amount then on deposit in the Principal Account, will be equal to the amount of principal coming due and payable on such date on the Outstanding Bonds. All moneys in the Principal Account shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of the Bonds upon the maturity thereof. (c) Sinkin,q Account. On or before each date on which any Outstanding Term Bonds become subject to mandatory Sinking Account redemption, the Agency shall withdraw from the Special Fund and transfer to the Trustee for deposit in the Sinking Account an amount which, when added to the amount then contained in the Sinking Account, will be equal to the aggregate principal amount of the Term Bonds subject to mandatory Sinking Account redemption on such date. All moneys on deposit in the Sinking Account shall be used and withdrawn by the Trustee for the sole purpose of paying the principal of the Term Bonds as it shall become due and payable upon the mandatory Sinking Account redemption thereof. (d) Reserve Account. In the event that the amount on deposit in the Reserve Account at any time becomes less than the Reserve Requirement; the Trustee (to the extent known to it) shall promptly notify the Agency of such fact. Promptly upon receipt of any such notice, the Agency shall transfer to the Trustee from the Special Fund an amount sufficient to maintain the Reserve Requirement on deposit .in the Reserve Account. Amounts in the Reserve Account shall be used and withdrawn by the Trustee for the purpose of making transfers to the Interest Account, the Principal Account and the Sinking Account, in such order of priority, on any date which the principal of or interest on the Bonds becomes due and payable hereunder, in the event of any deficiency at any time in any of such accounts, or at any time for the retirement of all the Bonds then Outstanding. So long as no Event of Default shall have occurred and be continuing, any amount in the Reserve Account in excess of the Reserve Requirement preceding each Interest Payment Date shall be withdrawn from the Reserve Account by the Trustee and deposited in the Interest Account on or before the Interest Payment Date. The Agency shall have the right at any time to release any funds from the Reserve Account, in whole or in part, by tendering to the Trustee: (i) a Qualified Reserve Account Credit Instrument, (ii) an opinion of Bond Counsel stating that neither the release of such funds nor the acceptance of such Qualified Reserve Account 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 Trustee, and upon delivery by the Agency to the Trustee of written calculation of the amount permitted to be released from the Reserve Account (upon which calculation the Trustee -26- may conclusively rely), the Trustee shall transfer such funds from the Reserve Account to the Agency free and clear of the lien of this Indenture. The Trustee shall comply with all documentation relating to a Qualified Reserve Account Credit Instrument as shall be required to maintain such Qualified Reserve Account 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 this subsection (d). At least fifteen (15) days prior to the expiration of any Qualified Reserve Account Credit Instrument, the Agency shall be obligated either (i) to replace such Qualified Reserve Account Credit Instrument with a new Qualified Reserve Account Credit Instrument, or (ii) to deposit or cause to be deposited with the Trustee an amount of funds such that the amount on deposit in the Reserve Account is equal to the Reserve Requirement (without taking into account such expiring Qualified Reserve Fund Credit Instrument). In the event that the Agency shall fail to take action as specified in clause (i) or (ii) of the preceding sentence, the Trustee shall, prior to the expiration thereof, draw upon the Qualified Reserve Account Credit Instrument in full and deposit the proceeds of such draw in the Reserve Account. In the event that the Reserve Requirement shall at any time be maintained in the Reserve Account in the form of a combination of cash and a Qualified Reserve Account Credit Instrument, the Trustee shall apply the amount of such cash to make any payment required to be made from the Reserve Account before the Trustee shall draw any moneys under such Qualified Reserve Account Credit Instrument for such purpose. In the event that the Trustee shall at any time draw funds under a Qualified Reserve Account Credit Instrument to make any payment then required to be made from the Reserve Account, the Tax Revenues thereafter received by the Trustee, to the extent remaining after making the other deposits (if any) then required to be made pursuant to Section 4.03(a), (b) and (c), shall be used to reinstate the Qualified Reserve Account Credit Instrument. The Reserve Account may be maintained in the form of one or more separate sub-accounts which are established for the purpose of holding the proceeds of separate issues of the Bonds in conformity with applicable provisions of the Tax Code. (e) Redemption Account. On or before each date on which Bonds are subject to redemption, other than mandatory Sinking Account redemption of Term Bonds, the Agency shall withdraw from the Special Fund and transfer to the Trustee for deposit in the Redemption Account an amount required to pay the principal of and premium, if any, on the Bonds to be so redeemed on such date taking into account any funds then on deposit in the Redemption Account available for such purpose. All moneys in the Redemption Account shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of and premium, if any, on the Bonds upon the redemption thereof, on the date set for such redemption, other than mandatory Sinking Account redemption of Term Bonds. Section 4.04, Investment By Trustee of Moneys in Funds. Moneys in the Debt Service Fund, the Interest Account, the Principal Account, the Sinking Account, the Reserve Account, the Redemption Account, the Project Fund and the Costs of Issuance Fund shall be invested by the Trustee in Permitted Investments specified in the Request of the Agency delivered to the Trustee at least two (2) Business Days in advance of the making of such investments; provided, however, that in the absence of any such direction from the Agency, the Trustee shall invest any such moneys solely in Permitted Investments described in clause (f) of -27- the definition thereof. Moneys in the Special Fund shall be invested by the Agency in any obligations in which the Agency is legally authorized to invest funds within its control. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account. Whenever in this Indenture any moneys are required to be transferred by the Agency to the Trustee, such transfer may be accomplished by transferring a like amount of Permitted Investments. All interest or gain derived from the investment of amounts in any of the funds or accounts held by the Trustee hereunder shall be retained in the respective fund or account from which such investment was made; provided, however, that (i) all interest or gain from the investment of amounts in the Reserve Account shall be deposited by the Trustee in the Interest Account to the extent not required to cause the balance in the Reserve Account to equal the Reserve Requirement, and (ii) so long as no Event of Default shall have occurred and be continuing, all interest or gain on investments of amounts in the Special Fund shall be released from the pledge hereof and used by the Agency for any lawful purposes. For purposes of acquiring any investments hereunder, the Trustee may commingle funds held by it hereunder upon receipt by .the Trustee of the Request of the Agency. The Trustee may act as principal or agent in the acquisition or disposition of any investment and may impose its customary charges therefor. The Trustee shall incur no liability for losses arising from any investments made pursuant to this Section. The Agency acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Agency the right to receive brokerage confirmations of security transactions as they occur, the Agency specifically waives receipt of such confirmations to the extent permitted by law. The Trustee will furnish the Agency periodic cash transaction statements which include detail for all investment transactions made by the Trustee hereunder. The Trustee may make any investments hereunder through its own bond or investment department or trust investment department, or those of its parent or any affiliate. The Trustee or any of its affiliates may act as sponsor, advisor or manager in connection with any investments made by the Trustee hereunder. Section 4.05. Valuation and Disposition of Investments. (a) Except as otherwise provided in subsection (b) of this Section, all investments of amounts deposited in any fund or account created by or pursuant to this Indenture, or otherwise containing gross proceeds of the Bonds (within the meaning of section 148 of the Tax Code) shall be acquired, disposed of, and valued (as of the date that valuation is required by this indenture or the Tax Code) at Fair Market Value. (b) Amounts in all funds and accounts shall be valued by the Trustee at least semi-annually fifteen days prior to each Interest Payment Date, provided as to any such valuation made by the Trustee, such valuation shall be at the market value of such investments and the Trustee may utilize computerized securities pricing services that may be available to it, including those available through its regular accounting system. (c) For purposes of computations required under the Code, investments in funds or accounts (or portions thereof) that are subject to a yield restriction under applicable provisions of the Tax Code and (unless valuation is undertaken at least annually) investments in the Reserve Account shall be valued by the Agency at their present value (within the meaning of section 148 of the Tax Code). -28- (d) The Trustee shall have no responsibility to determine Fair Market Value or present value of any Permitted Investment, and may rely upon any determination made by or on behalf of the Agency. This Section 4.05(d) shall in no way limit the Trustee's obligations under Section 6.07 hereof. -29- ARTICLE V OTHER COVENANTS OF THE AGENCY Section 5.01. Punctual Payment. The Agency shall punctually pay or cause to be paid the principal of and interest on the Bonds, together with any redemption premiums thereon, in strict conformity with the terms of this Indenture, and it shall faithfully observe and perform all of the conditions, covenants and requirements of this Indenture. Section 5.02. Limitation on Superior Debt. The Agency hereby covenants that, so long as the Bonds remain unpaid, the Agency shall not issue any bonds, notes or other obligations, enter into any agreement or otherwise incur any loans, advances or indebtedness, which is in any case secured by a lien on all or any part of the Tax Increment Revenues which is superior to the lien established hereunder for the security of the Bonds. The Agency hereby covenants that, so long as the Bonds remain unpaid, the Agency shall not issue any bonds, notes or other obligations, enter into any agreement or otherwise incur any loans, advances or indebtedness, which is in any case secured by a lien on all or any part of the Tax Increment Revenues which is on a parity with the lien established hereunder for the security of the Bonds, excepting only Parity Debt. Nothing herein is intended or shall be construed in any way to prohibit or impose any limitations upon the issuance by the Agency of loans, bonds, notes, advances or other indebtedness which are unsecured or which are secured by a junior lien on the Tax Increment Revenues, except as otherwise provided in Section 3.06. Section 5.03. Payment of Claims. The Agency will pay and discharge, or cause to be paid and discharged, any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien or charge upon the properties owned by the Agency or upon the Tax Increment Revenues or any part thereof, or upon any funds in the hands of the Trustee, or which might impair the security of the Bonds. Nothing herein contained shall require the Agency to make any such payment so long as the Agency in good faith shall contest the validity of said claims. Section 5.04. Books and Accounts. The Agency will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Agency and the City, in which complete and correct entries shall be made of all transactions relating to the Redevelopment Project, the Tax Increment Revenues and the Special Fund. Such books of record and accounts shall at all times during business hours be subject, upon prior written request, to the reasonable inspection of the Trustee and the Owners of any Bonds then Outstanding, or their representatives authorized in writing. The Trustee shall have no duty to review such books of record and account. Section 5.05. Protection of Security and Rights; Pass-Through Agreements. The Agency will preserve and protect the security of the Bonds and the rights of the Trustee and the Bond Owners. From and after the Closing Date, the Bonds shall be incontestable by the Agency. The Agency will comply with any applicable provisions of the Pass-Through Agreements related to the subordination of any obligation to remit Tax Increment Revenues thereunder to the payment of the Bonds hereunder. The Agency will not enter into any amendment to a Pass-Through Agreement that will adversely affect its ability to meet its obligations hereunder. -30- Section 5.06. Payments of Taxes and Other Charges. The Agency will pay and discharge, or cause to be paid and discharged, all taxes, service charges, assessments and other governmental charges which may hereafter be lawfully imposed upon the Agency or the properties then owned by the Agency in the proiect area created by the Redevelopment Plan, when the same shall become due. Nothing herein contained shall require the Agency to make any such payment so long as the Agency in good faith shall contest the validity of said taxes, assessments or charges. The Agency will duly observe and conform with all valid requirements of any governmental authority relative to the Redevelopment Project or any part thereof. Section 5.07. Extension of Payment, The Agency will not, directly or indirectly, extend or consent to the extension of the time for the payment of any Bond or claim for interest on any of the Bonds and will not, directly or indirectly, be a party to or approve any such arrangement by purchasing or funding the Bonds or claims for interest in any other manner. In case the maturity of any such Bond or claim for interest shall be extended or funded, whether or not with the consent of the Agency, such Bond or claim for interest so extended or funded shall not be entitled, in case of default hereunder, to the benefits of this Indenture, 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 been so extended or funded. Section 5.08. Disposition of Property. The Agency will not participate in the .disposition of any land or real property in the Project Area to anyone which will result in such property becoming exempt from taxation because of public ownership or use or otherwise (except property dedicated for public right-of-way and except property planned for public ownership or use by the Redevelopment Plan in effect on the date of this Indenture) so that such disposition shall, when taken together with other such dispositions, aggregate more than ten percent (10%) of the land area in the Redevelopment Project (calculating such ten percent against land in the Project Area owned by private parties as of the Closing Date) unless such disposition is permitted as hereinafter provided in this Section 5.08. If the Agency proposes to participate in such a disposition, it shall thereupon appoint an Independent Redevelopment Consultant to report on the effect of said proposed disposition. If the Report of the Independent Redevelopment Consultant concludes that the security of the Bonds and the rights of the Bond Owners and the Trustee hereunder will not be materially impaired by said proposed disposition, the Agency may thereafter make such disposition. If said Report concludes that such security will be materially impaired by said proposed disposition, the Agency shall disapprove said proposed disposition. Section 5.09. Maintenance of Tax Increment Revenues. The Agency shall comply with all requirements of the Redevelopment Law to insure the allocation and payment to it of the Tax Increment Revenues, including without limitation the timely filing of any necessary statements of indebtedness with appropriate officials of the County and (in the case of supplemental revenues and other amounts payable by the State) appropriate officials of the State. The Agency shall not enter into any agreement with the County or any other governmental unit, or modify the Redevelopment Plan or any Pass-Through Agreement in any manner, which would have the effect of reducing the amount of Tax Increment Revenues available to the Agency under the Redevelopment Plan for payment of the Bonds as of the Closing Date, unless in the written opinion of an Independent Redevelopment Consultant filed with the Trustee such reduction will not adversely affect the interests hereunder of or the security granted hereunder to the owners of the Bonds. Section 5.'10. Payment of Expenses; Indemnification. The Agency shall pay to the Trustee all compensation for all services rendered under this Indenture following the receipt of a statement therefor, including but not limited to all reasonable expenses, charges, legal and -31- consulting fees and other disbursements and those of its attorneys, agents and employees, incurred in and about the performance of its powers and duties hereunder and thereunder. The Agency further covenants and agrees to indemnify and save the Trustee and its officers, directors, agents and employees, harmless against any losses, expenses and liabilities which it may incur arising out of or in the exercise and performance of its powers and duties hereunder and under the Indenture, including the costs and expenses of defending against any claim of liability, but excluding any and all losses, expenses and liabilities which are due to the negligence or intentional misconduct of the Trustee, its officers, directors, agents or employees. The obligations of the Agency under this Section shall survive the resignation or removal of the Trustee under this Indenture and payment of the Bonds and the discharge of this Indenture. Section 5.tt. Tax Covenants Relating to 2002 Bonds. (a) Federal Guarantee Prohibition. The Agency 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 2002 Bonds to be "federally guaranteed" within the meaning of section 149(b) of the Tax Code. (b) No Arbitraqe. The Agency shall not take, or permit or suffer to be taken by the Trustee or otherwise, any action with respect to the 2002 Bond proceeds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the Closing Date, would have caused the 2002 Bonds to be "arbitrage bonds" within the meaning of section 148 of the Tax Code. (c) Private Activity Bond Limitation. The Agency shall assure that the proceeds of the 2002 Bonds are not so used as to cause the 2002 Bonds to satisfy the private business tests of section 141(b) of the Tax Code or the private loan financing test of section 141(c) of the Tax Code. (d) Rebate Requirement. The Agency shall take any and all actions necessary to assure compliance with section 148(f) of the Tax 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 2002 Bonds. (e) Maintenance of Tax-Exemption. The Agency shall take all actions necessary to assure the exclusion of interest on the 2002 Bonds from the gross income of the Owners of the 2002 Bonds to the same extent as such interest is permitted to be excluded from gross income under the Tax Code as in effect on the date of issuance of the 2002 Bonds. Section 5.12. Annual Review of Tax Revenues. The Agency shall annually review the total amount of Tax Increment Revenues remaining available to be received by the Agency under the Plan Limitations, as well as future cumulative annual debt service requirements. The Agency will not accept Tax Increment Revenues greater than annual debt service in any year if such acceptance will cause the amount of Tax Increment Revenues remaining under the Plan Limitations to fall below remaining cumulative debt service, except for the purpose of depositing such revenues in escrow for future debt service or to redeem or defease the Bonds. Section 5.13. Continuing Disclosure. The Agency hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other prevision of this Indenture, failure of the Agency to comply with the Continuing Disclosure Certificate shall not be considered an Event of Default; however, the Trustee, at the written request of any Participating Underwriter or the holders of at least 25% aggregate principal amount of Outstanding 2002 Bonds, shall (but only to the extent it has been indemnified to its satisfaction from any cost, claim, liability or expense, including, without limitation fees and expenses of its attorneys) or any 2002 Bondholder may, take such actions as may be necessary and appropriate to compel performance, including seeking mandate or specific performance by court order. Section 5.t4. Further Assurances. The Agency 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 Indenture, and for the better assuring and confirming unto the Owners the rights and benefits provided in this Indenture. -33- ARTICLE VI THE TRUSTEE Section 6.01. Duties, Immunities and Liabilities of Trustee. (a) The Trustee shatl, prior to the occurrence of an Event of Default, and after the curing or waiver of all Events of Default which may have occurred, perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants shall be read into this Indenture against the Trustee. The Trustee shall, during the existence of any Event of Default (which has not been cured or waived), exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use in the conduct of such person's own affairs. (b) The Agency may remove the Trustee at any time, and shall remove the Trustee (i) if at any time requested to do so by an instrument or concurrent instruments in writing signed by the Owners of not less than sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding (or their attorneys duly authorized in writing), or (ii) if at any time the Trustee shall cease to be eligible in accordance with subsection (e) of this Section, or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or its property shall be appointed, or any public officer shall take control or charge of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation. In each case such removal shall be accomplished by the giving of 30 days written notice of such removal by the Agency to the Trustee, whereupon the Agency shall appoint a successor Trustee by an instrument in writing. (c) The Trustee may at any time resign by giving at least 60 days prior written notice of such resignation to the Agency and by giving the Owners notice of such resignation by first class mail, postage prepaid, at their respective addresses shown on the Registration Books. Upon receiving such notice of resignation, the Agency shall promptly appoint a successor Trustee by an instrument in writing. (d) Any removal or resignation of the Trustee and appointment of a successor Trustee shall become effective only upon acceptance of appointment by the successor Trustee. If no successor Trustee shall have been appointed and have accepted appointment within forty-five (45) days following giving notice of removal or notice of resignation as aforesaid, the resigning Trustee or any Owner (on behalf of himself and all other Owners) may petition any court of competent jurisdiction for the appointment of a successor Trustee, and such court may thereupon, after such notice (if any) as it may deem proper, appoint such successor Trustee. Any successor Trustee appointed under this Indenture shall signify its acceptance of such appointment by executing and delivering to the Agency and to its predecessor Trustee a written acceptance thereof, and to the predecessor Trustee an instrument indemnifying the predecessor Trustee for any costs or claims arising during the time the successor Trustee serves as Trustee hereunder, and after payment by the Agency of all unpaid fees and expenses of the predecessor Trustee, such successor Trustee, without any further act, deed or conveyance, shall become vested with all the moneys, estates, properties, rights, powers, trusts, duties and obligations of such predecessor Trustee, with like effect as if originally named Trustee herein; but, nevertheless, upon the receipt by the predecessor Trustee of the Request of the Agency or the request of the successor Trustee, such predecessor Trustee shall execute and deliver any and all instruments of conveyance or further assurance and do such other -34- things as may reasonably be required for more fully and certainly vesting in and confirming to such successor Trustee all the right, title and interest of such predecessor Trustee in and to any property held by it under this Indenture and shall pay over, transfer, assign and deliver to the successor Trustee any money or other property subject to the trusts and conditions herein set forth. Upon request of the successor Trustee, the Agency shall execute and deliver any and all instruments as may be reasonably required for more fully and certainly vesting in and confirming to such successor Trustee all such moneys, estates, properties, rights, powers, trusts, duties and obligations. Upon acceptance of appointment by a successor Trustee as provided in this subsection, the Agency shall mail or cause the successor Trustee to mail, by first class mail postage prepaid, a notice of the succession of such Trustee to the trusts hereunder to the Owners at the addresses shown on the Registration Books. If the Agency fails to mail such notice within fifteen (15) days after acceptance of appointment by the successor Trustee, the successor Trustee shall cause such notice to be mailed at the expense of the Agency. (e) Any Trustee appointed under the provisions of this Section in succession to the Trustee shall (i) be a trust company or bank in good standing located in or organized under the laws of the State of California, or located in or organized under the laws of any other state, (ii) be authorized to exercise trust powers, (iii) have (or in the case of a corporation or trust company, included in a bank holding company system, the related bank holding company shall have) a combined capital and surplus of at least Fifty Million Dollars ($50,000,000), and (iv) be subject to supervision or examination by federal or state authority. If such bank or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purpose of this subsection the 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. In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this subsection (e), the Trustee shall resign immediately in the manner and with the effect specified in this Section and shall assist the Agency in a transfer of the trust estate hereunder to an institution eligible to serve as Trustee hereunder, without cost to the Agency. Section 6.02. Merger or Consolidation. Any bank or trust company into which the Trustee may be merged or converted or with which either of them may be consolidated or any bank or trust company resulting from any merger, conversion or consolidation to which it shall be a party or any bank or trust company to which the Trustee may sell or transfer all or substantially all of its corporate trust business, provided such bank or trust company shall be eligible under subsection (e) of Section 6.01, shall be the successor to such Trustee without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding. Section 6.03. Liability of Trustee. (a) The recitals of facts herein and in the Bonds contained shall be taken as statements of the Agency, and the Trustee shall not assume responsibility for the correctness of the same, nor make any representations as to the validity or sufficiency of this Indenture or of the Bonds nor shall incur any responsibility in respect thereof, other than as expressly stated herein. The Trustee shall, however, be responsible for its representations contained in its certificate of authentication on the Bonds. The Trustee shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful misconduct. The Trustee shall not be liable for the acts of any agents of the Trustee selected by it with due care. The Trustee may become the Owner of any Bonds with the same rights it would have if it were not Trustee and, to the extent permitted by law, may act as depository for and permit any of its -35- officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of the Owners, whether or not such committee shall represent the Owners of a majority in principal amount of the Bonds then Outstanding. (b) The Trustee shall not be liable for any error of judgment made in good faith by a responsible officer. (c) The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Owners of not less than a majority in aggregate principal amount of the Bonds at the time Outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture. (d) The Trustee shall not be liable for any action taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upo,n it by this Indenture, except for actions arising from the negligence or willful misconduct of the Trustee. The permissive right of the Trustee to do things enumerated hereunder shall not be construed as a mandatory duty. (e) The Trustee shall not be deemed to have knowledge of any Event of Default hereunder unless and until it shall have actual knowledge thereof, or shall have received written notice thereof at its Office. Except as otherwise expressly provided herein, the Trustee shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements herein or of any of the documents executed in connection with the Bonds, or as to the existence of an Event of Default hereunder or thereunder. The Trustee shall not be responsible for the validity or effectiveness of any collateral given to or held by it. (f) No provision in this Indenture shall require the Trustee to risk or expend its own funds or otherwise incur any financial liability hereunder. (g) All indemnifications and releases from liability granted herein to the Trustee shall extend to the directors, officers, employees and agents of the Trustee. (h) The Trustee shall have no responsibility or liability with respect to any information, statements or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of the Bonds. (i) Before taking any action under Article VIII or this Article at the request of the Owners the Trustee may require that a satisfactory indemnity bond be furnished by the Owners for the reimbursement of all expenses to which it may be put and to protect it against all liability, except liability which is adjudicated to have resulted from its negligence or willful misconduct in connection with any action so taken. Section 6.04. Right to Rely on Documents. The Trustee shall be protected in acting upon any notice, resolution, request, consent, order, certificate, report, opinion or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or padies, in the absence of negligence or willful misconduct by the Trustee. The Trustee may consult with counsel, including, without limitation, Bond Counsel or other counsel of or to the Agency, with regard to legal questions, and in the absence of negligence or willful misconduct by the Trustee the opinion of such counsel shall be full and complete authorization -36- and protection in respect of any action taken or suffered by the Trustee hereunder in accordance therewith. The Trustee 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 is established to the satisfaction of the Trustee. Whenever in the administration of the trusts imposed upon it by this Indenture the Trustee 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 be deemed to be conclusively proved and established by a Certificate of the Agency, which shall be full warrant to the Trustee for any action taken or suffered in good faith under the provisions of this Indenture in reliance upon such Certificate, but in its discretion the Trustee may (but shall have no duty to), in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may deem reasonable. The Trustee may conclusively rely on any certificate or Report of any Independent Accountant or Independent Redevelopment Consultant appointed by the Agency. Section 6.05. Preservation and Inspection of Documents. All documents received by the Trustee under the provisions of this Indenture shall be retained in its possession and shall be subject during normal business hours, and upon reasonable prior written notice, to the inspection of the Agency and any Owner, and their agents and representatives duly authorized in writing. Section 6.06. Compensation and Indemnification. The Agency shall pay to the Trustee from time to time compensation for all services rendered under this Indenture and also all expenses, charges, legal and consulting fees and other disbursements and those of its attorneys, agents and employees, incurred in and about the performance of its powers and duties under this Indenture. Upon the occurrence of an Event of Default, the Trustee shall have a first lien on the Tax Increment Revenues and all funds and accounts held by the Trustee hereunder (other than the Reserve Account) to secure the payment to the Trustee of all fees, costs and expenses, including compensation to its experts, attorneys and counsel incurred in declaring such Event of Default and in exercising the rights and remedies set forth in Article VIII. The Agency further covenants and agrees to indemnify and save the Trustee and its officers, directors, agents and employees, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise and performance of its powers and duties hereunder, including the costs and expenses of defending against any claim of liability and of enforcing any remedies hereunder and under any related documents, but excluding any and all losses, expenses and liabilities which are due to the negligence or willful misconduct of the Trustee, its officers, directors, agents or employees. The obligations of the Agency under this Section 6.06 shall survive resignation or removal of the Trustee under this Indenture and payment of the Bonds and discharge of this Indenture. The Trustee shall cooperate with the Agency in connection with any litigation referred to in this paragraph, such as the sharing of information gathered in connection with any such litigation. The Trustee shall review with counsel to the Agency materials and information obtained in connection with any such litigation with the purpose of minimizing duplication of effort. Section 6,07, Accounting Records and Financial Statements. The Trustee shall at all times keep, or cause to be kept, proper books of record and account, prepared in accordance with corporate trust industry standards, in which complete and accurate entries shall be made of all transactions made by it relating to the proceeds of the Bonds and all funds and accounts established and held by the Trustee pursuant to this Indenture. Such books of record and account shall be available for inspection by the Agency at reasonable hours, during regular business hours, with reasonable prior notice and under reasonable circumstances. The Trustee shall furnish to the Agency, at least monthly, an accounting (which may be in the form of its customary statements) of all transactions relating to the proceeds of the Bonds and all funds and accounts, valued at the then market value, held by the Trustee pursuant to this Indenture. Section 6.08. Appointment of Co-Trustee or Agent. It is the purpose of this Indenture that there shall be no violation of any law of any jurisdiction (including particularly the law of the State) denying or restricting the right of national banking associations or associations to transact business as Trustee in such jurisdiction. It is recognized that in the case of litigation under this Indenture, and in particular in case of the enforcement of the rights of the Trustee on default, or in the case the Trustee deems that by reason of any present or future law of any jurisdiction it may not exercise any of the powers, rights or remedies herein granted to the Trustee or hold title to the properties, in trust, as herein granted, or take any other action which may be desirable or necessary in connection therewith, it may be necessary that the Trustee appoint an additional individual or institution as a separate co-Trustee. The following provisions of this Section 6.08 are adopted to these ends. In the event that the Trustee appoints an additional individual or institution as a separate or co-Trustee, each and every remedy, power, right, claim, demand, cause of action, immunity, estate, title, interest and lien expressed or intended by this Indenture to be exercised by or vested in or conveyed to the Trustee with respect thereto shall be exercisable by and vest in such separate or co-Trustee but only to the extent necessary to enable such separate or co- Trustee to exercise such powers, rights and remedies, and every covenant and obligation necessary to the exercise thereof by such separate or co-Trustee shall run to and be enforceable by either of them. Should any instrument in writing from the Agency be required by the separate Trustee or co-Trustee so appointed by the Trustee for more fully and certainly vesting in and confirming to it such properties, rights, powers, trusts, duties and obligations, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the Agency. In case any separate Trustee or co-Trustee, or a successor to either, shall become incapable of acting, resign or be removed, all the estates, properties, rights, powers, trusts, duties and obligations of such separate Trustee or co-Trustee, so far as permitted by law, shall vest in and be exercised by the Trustee until the appointment of a new Trustee or successor to such separate Trustee or co-Trustee. The Trustee may perform any of its obligations or duties hereunder and under any related documents through agents or attorneys and shall not be responsible for the acts of any such agents or attorneys appointed by it with due care. -38- ARTICLE VII MODIFICATION OR AMENDMENT OF THIS INDENTURE Section 7.01. Amendment With Consent of Owners. This Indenture and the rights and obligations of the Agency and of the Owners may be modified or amended at any time by a Supplemental Indenture which shall become binding upon adoption, without the consent of any Owners, to the extent permitted by law and only for any one or more of the following purposes: (a) to add to the covenants and agreements of the Agency contained in this Indenture, .other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the Agency; or (b) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Indenture, or in any other respect whatsoever as the Agency may deem necessary or desirable, provided under any circumstances that such modifications or amendments shall not materially adversely affect the interests of the Owners in the opinion of Bond Counsel; (c) to provide for the issuance of Parity Debt, and to provide the terms and conditions under which such Parity Debt may be issued, including but not limited to the establishment of special funds and accounts relating thereto and any other provisions relating solely thereto, subject to and in accordance with the provisions of Section 3.05 hereof; or (d) to make such additions, deletions or modifications as may be necessary or desirable to assure exclusion from gross income for purposes of federal income taxation of interest on the Bonds. Except as set forth in the preceding paragraph, this Indenture and the rights and obligations of the Agency and of the Owners may be modified or amended at any time by a Supplemental Indenture which shall become binding when the written consents of the Owners of a majority in aggregate principal amount of the Bonds then Outstanding are delivered to the Trustee. No such modification or amendment shall (a) extend the maturity of or reduce the interest rate on any Bond or otherwise alter or impair the obligation of the Agency to pay the principal, interest or redemption premium (if any) at the time and place and at the rate and in the currency provided therein of any Bond without the express written consent of the Owner of such Bond, (b) reduce the percentage of Bonds required for the written consent to any such amendment or modification, or (c) without its written consent thereto, modify any of the rights or obligations of the Trustee. Section 7.02. Effect of Supplemental Indenture. From and after the time any Supplemental Indenture becomes effective pursuant to this Article VII, this Indenture shall be deemed to be modified and amended in accordance therewith, the respective rights, duties and obligations of the parties hereto or thereto and all Owners, as the case may be, shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modification and amendment, and all the terms and conditions of any Supplemental Indenture shall be deemed to be part of the terms and conditions of this Indenture for any and all purposes. -39- Section 7.03. Endorsement or Replacement of Bonds After Amendment. After the effective date of any amendment or modification hereof pursuant to this Article VII, the Agency may determine that any or all of the Bonds shall bear a notation, by endorsement in form approved by the Agency, as to such amendment or modification and in that case upon demand of the Agency the Owners of such Bonds shall present such Bonds for that purpose at the Office of the Trustee and thereupon a suitable notation as to such action shall be made on such Bonds. In lieu of such notation, the Agency may determine that new Bonds shall be prepared and executed in exchange for any or all of the Bonds and in that case upon demand of the Agency the Owners of the Bonds shall present such Bonds for exchange at the Office of the Trustee without cost to such Owners. Section 7.04, Amendment by Mutual Consent. The provisions of this Article VII shall not prevent any Owner from accepting any amendment as to the particular Bond held by such Owner, provided that due notation thereof is made on such Bond. Section 7.05. Trustee's Reliance. The Trustee may rely, and shall be protected in relying, upon a Certificate of the Agency and an opinion of counsel stating that all requirements of this Indenture relating to the amendment or modification hereof have been satisfied and that such amendments or modifications do not materially adversely affect the interests of the Owners. -40- ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES OF OWNERS Section 8.01. Events of Default. The following events shall constitute Events of Default hereunder: (a) Failure to pay any installment of the principal of any Bonds when and as the same shall become due and payable, whether at maturity as therein expressed, by proceedings for redemption or otherwise. (b) Failure to pay any installment of interest on any Bonds when and as the same shall become due and payable. (c) Failure by the Agency to observe and perform any of the other covenants, agreements or conditions on its part in this Indenture or in the Bonds contained, if such failure shall have continued for a period of sixty (60) days after written notice thereof, specifying such failure and requiring the same to be remedied, shall have been given to the Agency by the Trustee; provided, however, if in the reasonable opinion of the Agency the failure stated in the notice can be corrected, but not within such sixty (60) day period, such failure shall not constitute an Event of Default if corrective action is instituted by the Agency within such sixty (60) day period and the Agency shall thereafter diligently and in good faith cure such failure in a reasonable period of time. (d) The Agency shall commence a voluntary case under Title 11 of the United States Code or any substitute or successor statute. (e) The occurrence of an Event of Default under and as defined in any Parity Debt Instrument. If an Event of Default has occurred and is continuing, the Trustee may, and if requested in writing by the Owners of a majority in aggregate principal amount of the Bonds then Outstanding the Trustee shall exercise any remedies available to the Trustee and the Owners in law or at equity. Immediately upon becoming aware of the occurrence of an Event of Default, the Trustee shall give notice of such Event of Default to the Agency by telephone confirmed in writing. With respect to any Event of Default described in clauses (a) or (b) above the Trustee shall, and with respect to any Event of Default described in clause (c) above the Trustee in its sole discretion may, also give such notice to the Owners in the same manner as provided herein for notices of redemption of the Bonds. Section 8.02. Application of Funds Upon Default. So long as an Event of Default exists, all sums received by the Trustee hereunder shall be applied by the Trustee as follows and in the following order: (a) To the payment of the reasonable fees, costs and expenses of the Trustee (including reasonable fees and expenses of its counsel) incurred in and about the pen~ormance of its powers and duties under this Indenture and the payment of all reasonable fees, costs and expenses owing to the Trustee pursuant to Section 6.06 hereof; and (b) To the payment of the whole amount of interest on and principal of the Bonds then due and unpaid, with interest on overdue installments of principal and interest to the extent permitted by law at the net effective rate of interest then borne by the Outstanding Bonds; provided, however, that in the event such amounts shall be insufficient to pay the full amount of such interest and principal, then such amounts shall be applied in the following order of priority: (a) first, to the payment of all installments of interest on the Bonds then due and unpaid, on a pro rata basis in the event that the available amounts are insufficient to pay all such interest in full, (b) second, to the payment of principal of all installments of the Bonds then due and unpaid, on a pro rata basis in the event that the available amounts are insufficient to pay all such principal in full, and (c) third, to the payment of interest on overdue installments of principal and interest, on a pro rata basis in the event that the available amounts are insufficient to pay all such interest in full. Section 8.03. Power of Trustee to Control Proceedings. In the event that the Trustee, upon the happening of an Event of Default, shall have taken any action, by judicial proceedings or otherwise, pursuant to its duties hereunder, whether upon its own discretion or upon the request of the Owners of a majority in principal amount of the Bonds then Outstanding it shall have full power, in the exercise of its discretion for the best interests of the Owners of the Bonds, with respect to the continuance, discontinuance, withdrawal, compromise, settlement or other disposal of such action; provided, however, that the Trustee shall not, unless there no longer continues an Event of Default, discontinue, withdraw, compromise or settle, or otherwise dispose of any litigation pending at law or in equity, if at the time there has been filed with it a written request signed by the Owners of a majority in principal amount of the Outstanding Bonds hereunder opposing such discontinuance, withdrawal, compromise, settlement or other disposal of such litigation. Section 8.04. Limitation on Owners' Right to Sue. No Owner of any Bond issued hereunder shall have the right to institute any suit, action or proceeding at law or in equity, for any remedy under or upon this Indenture, unless (a) such Owner shall have previously given to the Trustee written notice of the occurrence of an Event of Default; (b) the Owners of a majority in aggregate principal amount of all the Bonds then Outstanding shall have made written request upon the Trustee to exercise the powers hereinbefore granted or to institute such action, suit or proceeding in its own name; (c) said Owners shall have tendered to the Trustee indemnity reasonably acceptable to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request; and (d) the Trustee shall have refused or omitted to comply with such request for a period of sixty (60) days after such written request shall have been received by, and said tender of indemnity shall have been made to, the Trustee. Such notification, request, tender of indemnity and refusal or omission are hereby declared, in every case, to be conditions precedent to the exercise by any Owner of any remedy hereunder; it being understood and intended that no one or more Owners shall have any right in any manner whatever by his or their action to enforce any right under this Indenture, except in the manner herein provided, and that all proceedings at law or in equity to enforce any provision of this Indenture shall be instituted, had and maintained in the manner herein provided and for the equal benefit of all Owners of the Outstanding Bonds. The right of any Owner of any Bond to receive payment of the principal of and premium, if any, and interest on such Bond as herein provided, shall not be impaired or affected without the written consent of such Owner, notwithstanding the foregoing provisions of this Section or any other provision of this Indenture. Section 8,05, Non-waiver. Nothing in this Article VIII or in any other provision of this Indenture or in the Bonds, shall affect or impair the obligation of the Agency, which is absolute and unconditional, to pay from the Tax Increment Revenues and other amounts pledged hereunder, the principal of and interest and redemption premium (if any) on the Bonds to the respective Owners when due and payable as herein provided, or affect or impair the right of action, which is also absolute and unconditional, of the Owners or the Trustee to institute suit to enforce such payment by virtue of the contract embodied in the Bonds. A waiver of any default by any Owner or the Trustee shall not affect any subsequent default or impair any rights or remedies on the subsequent default. No delay or omission of any Owner or the Trustee to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein, and every power and remedy conferred upon the Owners or the Trustee by the Redevelopment Law or by this Article VIII may be enforced and exercised from time to time and as often as shall be deemed expedient by the Owners or the Trustee. If a suit, action or proceeding to enforce any right or exercise any remedy shall be abandoned or determined adversely to the Owners or the Trustee, the Agency, the Trustee and the Owners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. Section 8.06. Actions by Trustee as Attorney-in-Fact. Any suit, action or proceeding which any Owner shall have the right to bring to enforce any right or remedy hereunder may be brought by the Trustee for the equal benefit and protection of all Owners similarly situated and the Trustee is hereby appointed (and the successive respective Owners by taking and holding the Bonds shall be conclusively deemed so to have appointed it) the true and lawful attorney-in- fact of the respective Owners for the purpose of bringing any such suit, action or proceeding and to do and perform any and all acts and things for and on behalf of the respective Owners as a class or classes, as may be necessary or advisable in the opinion of the Trustee as such attorney-in-fact, subject to the provisions of Article VI. Section 8.07. Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Owners is intended to be exclusive of any other remedy. Every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing, at law or in equity or by statute or otherwise, and may be exercised without exhausting and without regard to any other remedy con~erred by the Redevelopment Law or any other law. -43- ARTICLE IX MISCELLANEOUS Section 9.01. Benefits Limited to Parties. Nothing in this Indenture, expressed or implied, is intended to give to any person other than the Agency, the Trustee and the Owners, any right, remedy, claim under or by reason of this Indenture. Any covenants, stipulations, promises or agreements in this indenture contained by and on behalf of the Agency shall be for the sole and exclusive benefit of the Trustee and the Owners. Section 9.02. Successor is Deemed Included in All References to Predecessor, Whenever in this indenture or any Supplemental indenture either the Agency or the Trustee 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 Indenture contained by or on behalf of the Agency or the Trustee shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not. Section 9.03. Defeasance of Bonds. If the Agency shall pay and discharge the entire indebtedness on any Bonds in any one or more of the following ways: (a) by paying or causing to be paid the principal of and interest on such Bonds, as and when the same become due and payable; (b) by irrevocably depositing with the Trustee or an escrow agent, in trust, at or before maturity, money which, together with the available amounts then on deposit in the funds and accounts established pursuant to this Indenture, in the opinion or report of an Independent Accountant or Bond Counsel is fully sufficient to pay such Bonds, including all principal, interest and redemption premium, if any; (c) by irrevocably depositing with the Trustee or an escrow agent, in trust, Defeasance Securities in such amount as an Independent Accountant or Bond Counsel shall determine will, together with the interest to accrue thereon and available moneys then on deposit in any of the funds and accounts established pursuant to this Indenture, be fully sufficient to pay and discharge the indebtedness on such Bonds (including all principal, interest and redemption premium, if any) at or before maturity; or (d)' by purchasing such Bonds prior to maturity and tendering such Bonds to the Trustee for cancellation; and if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been duly given or provision satisfactory to the Trustee shall have been made for the giving of such notice, then, at the election of the Agency, and notwithstanding that any such Bonds shall not have been surrendered for payment, the pledge of the Tax Increment Revenues and other funds provided for in this Indenture and all other obligations of the Trustee and the Agency under this Indenture with respect to such Bonds shall cease and terminate, except only (a) the obligations of the Agency under Section 5.11, (b) the obligation of the Trustee to transfer and exchange Bonds hereunder, (c) the obligation of the Agency to pay or cause to be paid to the Owners of such Bonds, from the amounts so deposited with the Trustee, ail sums due thereon, and (d) the obligations of the Agency to compensate and indemnify the Trustee pursuant to Section 6.06. Notice of such election shall be flied with the Trustee. Any funds thereafter held by the Trustee, which are not required for said purpose, shall be paid over to the Agency, to be used for any lawful purpose of the Agency. Section 9,04, Execution of Documents and Proof of Ownership by Owners. Any request, consent, declaration or other instrument which this Indenture may require or permit to be executed by any Owner may be in one or more instruments of similar tenor, and shall be executed by such Owner 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. The ownership of Bonds and the amount, maturity, number and date of ownership thereof shall be proved by the Registration Books. Any request, consent, 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 Agency or the Trustee in good faith and in accordance therewith. Section 9.05. Disqualified Bonds. In determining whether the Owners of the requisite aggregate principal amount of Bonds have concurred in any demand, request, direction, consent or waiver under this Indenture, Bonds which are owned or held by or for the account of the Agency or the City (but excluding Bonds held in any employees' retirement fund) shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, provided, however, that for the purpose of determining whether the Trustee shall be protected in relying on any such demand, request, direction, consent or waiver, only Bonds which the Trustee knows to be so owned or held shall be disregarded. Section 9.06. Waiver of Personal Liability. No member, officer, agent or employee of the Agency shall be individually or personally liable for the payment of the principal of or interest or any premium on the Bonds; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law. Section 9.07. Destruction of Canceled Bonds. Whenever in this Indenture provision is made for the surrender to the Agency of any Bonds which have been paid or canceled pursuant to the provisions of this Indenture, upon receipt by the Trustee of the Request of the Agency a certificate of destruction duly executed by the Trustee shall be deemed to be the equivalent of the surrender of such canceled Bonds and the Agency shall be entitled to rely upon any statement of fact contained in any certificate with respect to the destruction of any such Bonds therein referred to. Section 9.08. Notices. All written notices to be given under this indenture shall be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, or at such address as the party may provide to the other party in writing from time to time. Notice shall be effective either (a) upon transmission by facsimile transmission or other form of telecommunication, (b) upon actual receipt after deposit in the United States mail, postage prepaid, or (c) in the case of personal delivery to any person, upon actual receipt. The Agency or the Trustee may, by written notice to the other parties, from time to time modify the address or number to which communications are to be given hereunder. If to the Agency: Redevelopment Agency of the City of Temecula cio City of Temecula 43200 Business Park Drive Temecula, California 92590 Attention: Director of Finance If to the Trustee: U.S. Bank, N.A. 550 South Hope Street, Suite 500 Los Angeles, California 90071 Attention: Corporate Trust Division Section 9.09. CUSIP Numbers. The Trustee and the Agency shall not be liable for any defect or inaccuracy in the CUSIP number that appears on any Bond, check, advise of payment or redemption notice and any such document may contain a statement to the effect that CUSIP numbers have been assigned by an independent service for convenience of reference and that neither the Agency nor the Trustee shall be liable for any inaccuracy in such numbers. Section 9.10. Partial Invalidity. If any Section, paragraph, sentence, clause or phrase of this Indenture shall for any reason be held illegal, invalid or unenforceable, such holding shall not affect the validity of the remaining portions of this Indenture. The Agency and the Trustee hereby declare that they would have entered into this Indenture and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of the fact that any one or more Sections, paragraphs, sentences, clauses, or phrases of this Indenture may be held illegal, invalid or unenforceable. Section 9,tt, Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any money held by the Trustee in trust for the payment and discharge of the interest or premium (if any) on or principal of the Bonds which remains unclaimed for two (2) years after the date when the payments of such interest, premium and principal have become payable, if such money was held by the Trustee at such date, or for two (2) years after the date of deposit of such money if deposited with the Trustee after the date when the interest and premium (if any) on and principal of such Bonds have become payable, shall be repaid by the Trustee to the Agency as its absolute property free from trust (subject to any applicable escheat laws of State), and the Trustee shall thereupon be released and discharged with respect thereto and the Owners shall look only to the Agency for the payment of the principal of and interest and redemption premium (if any) on of such Bonds. Section 9.12. Payment on Business Days. Whenever in this Indenture any amount is required to be paid on a day which is not a Business Day, such payment shall be required to be made on the Business Day immediately following such day, provided that interest on such payment shall not accrue from and after such day. Section 9.13. Article and Section Headings and References. The headings or titles of the several Articles and Sections hereof, and any table of contents appended to copies hereof, shall be solely for convenience of reference and shall not affect the meaning, construction or effect of this Indenture. All references herein to "Articles", "Sections" and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Indenture; the words "herein", "hereof", "hereby", "hereunder" and other words of similar import refer to this -46- Indenture as a whole and not to any particular Article, Section or subdivision hereof; and words of the masculine gender shall mean and include words of the feminine and neuter genders. Section 9.14. Execution in Counterparts. This Indenture may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 9.15. Governing Law. This Indenture shall be construed and governed in accordance with the laws of the State. IN WITNESS WHEREOF, the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA has caused this Indenture to be signed in its name by its Executive Director, and U.S. BANK, N.A. in token of its acceptance of the trusts created hereunder, has caused this Indenture to be signed in its corporate name by its officers thereunto duly authorized, all as of the day and year first above written. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Shawn D. Nelson, Executive Director U.S. BANK, N.A., as Trustee By Authorized Officer -48- EXHIBIT A FORM OF 2002 BONDS No. $ UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF RIVERSIDE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO. 1 2002 TAX ALLOCATION BOND RATE OF INTEREST MATURITY DATE: DATED DATE: CUSIP: % August 1,__ April __, 2002 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS The REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate and politic, duly organized and existing under the laws of the State of California (the "Agency"), for value received, hereby promises to pay (but only out of the Tax Increment Revenues and other moneys hereafter referred to) to the Registered Owner identified above or registered assigns (the "Registered Owner"), on the Maturity Date identified above, the Principal Amount identified above in lawful money of the United States of America; and to pay interest thereon at the Rate of Interest identified above in like lawful money from the date hereof, which date shall be the Interest Payment Date (as hereinafter defined) next preceding the date of authentication of this Bond (unless this Bond is authenticated on or before an Interest Payment Date and after the fifteenth calendar day of the month preceding such Interest Payment Date (a "Record Date"), in which event it shall bear interest from such Interest Payment Date, or unless this Bond is authenticated on or prior to July 15, 2002, in which event it shall bear interest from the Dated Date identified above; provided, however, that if, at the time of authentication of this Bond, interest is in default on this Bond, this Bond shall bear interest from the Interest Payment Date to which interest hereon has previously been paid or made available for payment), payable semiannually on February 1 and August 1 in each year, commencing August 1, 2002 (the "Interest Payment Dates") until payment of such Principal amount in full. The principal amount hereof is payable upon presentation hereof at the Office (as defined in the Indenture) of U.S. Bank, N.A., as trustee (the "Trustee"), or at such other place as is designated by the Trustee. Interest hereon is payable by check of the Trustee mailed by first class mail on each Interest Payment Date to the Registered Owner hereof at the address of such Registered Owner as it appears on the registration books of the Trustee as of the preceding Record Date; provided that at the written request of the owner of at least $1,000,000 aggregate principal amount of Bonds which written request is on file with the Trustee as of any Record Date, interest on such Bonds shall be paid on the succeeding Interest Payment Date by wire transfer to such account as shall be specified in such written request. This Bond is one of a duly authorized issue of bonds of the Agency designated as the "Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. I 2002 Tax Allocation Bonds" (the "Bonds") of an aggregate principal amount of Million Dollars ($ .), all of like tenor and date (except for such variation, if any, as may be required to designate varying numbers, maturities, interest rates or redemption provisions) and all issued pursuant to the provisions of Part 1 of Division 24 of the California Health and Safety Code (the "Redevelopment Law") and pursuant to an Indenture of Trust, dated as of April 1, 2002, by and between the Agency and the Trustee (the "Indenture"). The Bonds have been authorized to be issued by the Agency pursuant to a resolution of the Agency adopted on March 26, 2002. The Agency may issue or incur additional obligations secured on a parity with the Bonds, but only subject to the terms of the Indenture. Reference is hereby made to the Indenture (copies of which are on file at the office of the Trustee) and all supplements thereto and to the Redevelopment Law for a description of the terms on which the Bonds are issued, the provisions with regard to the nature and extent of the Tax Increment Revenues, as that term is defined in the Indenture, and the rights thereunder of the owners of the Bonds and the rights, duties and immunities of the Trustee and the rights and obligations of the Agency thereunder, to all of the provisions of which the Registered Owner of this Bond, by acceptance hereof, assents and agrees. The Bonds have been issued by the Agency to provide monies to finance certain redevelopment activities within or of benefit to the Agency's 'Femecula Redevelopment Project No. 1, to refund the Prior Bonds (as defined in the Indenture), and to satisfy all or a portion of certain obligations of the Agency to the County of Riverside. This Bond and the interest hereon are payable from, and are secured by a charge and lien on, the Tax Increment Revenues derived by the Agency from the Redevelopment Project (as such terms are defined in the Indenture), on a parity with any Parity Debt at any time issued by the Agency under and in accordance with the Indenture. As and to the extent set forth in the Indenture, all of the Tax Increment Revenues are irrevocably pledged in accordance with the terms hereof and the provisions of the Indenture and the Redevelopment Law, to the payment of the principal of and interest and premium (if any) on the Bonds and any such Parity Debt. Notwithstanding the foregoing, certain amounts out of Tax Increment Revenues may be applied for other purposes as provided in any Parity Debt Instrument or the Indenture. This Bond is not a debt of the City of Temecula, the State of California, or any of its political subdivisions, and neither said City nor said State or any of its political subdivisions is liable hereon, nor in any event shall this Bond be payable out of any funds or properties other than the Tax Increment Revenues and amounts held in certain funds and accounts under the Indenture. The rights and obligations of the Agency and the owners of the Bonds may be modified or amended at any time in the manner, to the extent and upon the terms provided in the Indenture, but no such modification or amendment shall permit a change in the terms of redemption or maturity of the principal of any outstanding Bond or of any installment of interest thereon or a reduction in the principal amount or the redemption price thereof or in the rate of interest thereon without the consent of the owner of such Bond, or shall reduce the percentages of the owners required to effect any such modification or amendment. The Bonds maturing on and after August 1, __ shall be subject to redemption in whole or in part on any date, on or after August 1, , in each case from any available source of funds, at the redemption price set forth below (expressed as a percentage of the principal of the Bonds to be redeemed), together with accrued interest thereon to the redemption date:. A-2 Redemption Dates Redemption Price August 1, through July 31, % August 1, and thereafter The Bonds maturing on August 1, and on August 1, __ shall also be subject to redemption in whole, or in part by lot, at a redemption price equal to the principal amount thereof together with accrued interest thereon to the redemption date, without premium, from mandatory sinking account payments under the Indenture, on August 1 in the respective years and in the respective amounts set forth below: Bonds Maturing August 1, Sinking Account Redemption Date Principal Amount (Au.qust 1) To Be Redeemed [to come] Bonds Maturing August 1, Sinking Account Redemption Date Principal Amount (Au.qust 1) To Be Redeemed [to come] As provided in the Indenture, notice of redemption shall be mailed by the Trustee by first class mail not less than thirty (30) nor more than sixty (60) days prior to the redemption date to the respective owners of any Bonds designated for redemption at their addresses appearing on the Bond registration books of the Trustee, but neither failure to receive such notice nor any defect in the notice so mailed shall affect the sufficiency of the proceedings for redemption. If this Bond is called for redemption and payment is duly provided therefor as specified in the Indenture, interest shall cease to accrue hereon from and after the date fixed for redemption. · This Bond may be presented for transfer by the Registered Owner hereof, in person or by his attorney duly authorized in writing, at said Office of the Trustee or at such other place as is designated by the Trustee, but only in the manner, subject to the limitations and upon payment of the charges provided in the Indenture, and upon surrender and cancellation of this Bond. Upon registration of such transfer a new Bond or Bonds, of authorized denomination or denominations, for the same aggregate Principal amount and of the same maturity will be issued to the transferee in exchange herefor. The Agency and the Trustee may treat the Registered Owner hereof as the absolute owner hereof for all purposes, and the Agency and the Trustee shall not be affected by any notice to the contrary. It is hereby certified that all of the things, conditions and acts required to exist, to have happened or to have been performed precedent to and in the issuance of this Bond do exist, have happened or have been performed in due and regular time, form and manner as required by the Redevelopment Law and the laws of the State of California and that the amount of this Bond, together with all other indebtedness of the Agency, does not exceed any limit prescribed by the Redevelopment Law or any laws of the State of California, and is not in excess of the amount of Bonds permitted to be issued under the Indenture. This Bond shall not be entitled to any benefit under the Indenture or become valid or obligatory for any purpose until the certificate of authentication hereon endorsed shall have been manually signed by the Trustee. Unless this Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to the Agency 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 DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. IN WITNESS WHEREOF, the Redevelopment Agency of the City of Temecula has caused this Bond to be executed in its name and on its behalf with the facsimile signature of its Chairman and its seal to be impressed hereon and attested to by the facsimile signature of its Secretary, all as of the date of issuance of the Bonds. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Jeff Comerchero, Chairman (SEAL) Attest: Susan W. Jones, Secretary CERTIFICATE OF AUTHENTICATION This is one of the Bonds described in the within-mentioned Indenture. Dated: U.S. BANK, N.A., as Trustee By Authorized Signatory ASSIGNMENT For value received the undersigned hereby sells, assigns and transfers unto (Name, Address and Tax Identification or Social Security Number) the within-mentioned registered Bond and hereby irrevocably constitute(s) and appoint(s) attorney, to transfer the same on the registration books of the Trustee with full power of substitution in the premises. Dated: Signatures Guaranteed: Note: Signature(s) must be guaranteed by an Note: The signatures(s) on this Assignment must eligible guarantor, 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-6 ESCROW DEPOSIT AND TRUST AGREEMENT ESCROW DEPOSIT AND TRUST AGREEMENT by and between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA and U.S. BANK, N.A., as Escrow Bank Dated as of April 1, 2002 Relating to Refunding of the Outstanding Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 1993 Tax Allocation Bonds, Series A ESCROW DEPOSIT AND TRUST AGREEMENT This ESCROW DEPOSIT AND TRUST AGREEMENT, dated as of April 1, 2002, is by and between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body corporate and politic, organized and existing under the laws of the State of California (the "Agency"), and U.S. BANK, N.A., a national banking association organized and existing under the laws of the United States of America, as escrow bank hereunder (the "Escrow Bank"). RECITALS: WHEREAS, for the purpose of providing funds to assist in the financing of redevelopment activities within or of benefit to the Agency's Temecula Redevelopment Project No. 1, the Agency has heretofore issued its $17,355,000 initial principal amount of Temecula Redevelopment Project No. 1 1993 Tax Allocation Bonds, Series A1 of which there are currently outstanding $11,715,000 principal amount (the "1993 Bonds"); WHEREAS, the 1993 Bonds were issued pursuant to a Trust Indenture, dated as of February 1, 1993, between the Agency and Bank of America National Trust and Savings Association, the predecessor in interest to the Escrow Bank as trustee thereunder (the "1993 Indenture"); WHEREAS, Section 10.03 of the 1993 Indenture provides that if the Agency shall pay and discharge the entire indebtedness on all of the 1993 Bonds (a) by irrevocably depositing with the Trustee (such term, and all other capitalized terms hereafter used in this paragraph and not otherwise defined above, have the meanings given in the 1993 Indenture) in trust, at or before maturity money which, together with the amounts then on deposit in the funds and accounts established pursuant to this Indenture is fully sufficient to pay all Bonds Outstanding, including all principal, interest and redemption premiums; or (b) by irrevocably depositing with the Trustee, in trust, non-callable Federal Securities in such amount as an Independent Financial Consultant shall certify to the Trustee, based upon a certificate of an Independent Certified Public Accountant, will together with the interest to accrue thereon and moneys then on deposit in the funds an accounts established pursuant to the 1993 Indenture, be fully sufficient to pay and discharge the indebtedness on all 1993 Bonds (including all principal, interest and redemption premiums) at or before their respective maturity dates; and if such 1993 Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been given or provision satisfactory to the Trustee shall have been made for the giving of such notice, then notwithstanding that any 1993 Bonds shall not have been surrendered for payment, the pledge of the Tax Revenues and other funds provided for in the 1993 Indenture and all other obligations of the Agency under the 1993 Indenture with respect to all 1993 Bonds Outstanding shall cease and terminate, except only the obligation of the Agency to pay or cause to be paid to the Owners of the 1993 Bonds not so surrendered and paid all sums due thereon, and thereafter Tax Revenues shall not be payable to the Trustee; and WHEREAS, the Agency has determined to provide for the refunding of the 1993 Bonds; WHEREAS, for the purpose of providing funds for the refunding of the 1993 Bonds, the Agency has determined to issue its $. Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds (the "2002 Bonds"), pursuant to and secured by an indenture of trust, dated as of April 1, 2002 (the "2002 Indenture"), by and between the Agency and U.S. Bank, N.A., as trustee (the "2002 Trustee"); WHEREAS, the Agency wishes to make a deposit of proceeds of the 2002 Bonds with the Escrow Bank as contemplated by Section 10.03 of the 1993 Indenture and to enter into this Escrow Deposit and Trust Agreement for the purpose of providing the terms and conditions for the deposit and application of amounts so deposited; and WHEREAS, the Escrow Bank has full powers to act with respect to the irrevocable escrow and trust created herein and to perform the duties and obligations to be undertaken pursuant to this Escrow Deposit and Trust Agreement. AGREEMENT: NOW, THEREFORE, in consideration of the above premises and of the mutual promises and covenants herein contained and for other valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows: Section 1. Definition of Federal Securities. As used herein, the term "Federal Securities" shall have the meaning given such term in the 1993 Indenture. Section 2. Appointment of Escrow Bank. The Agency hereby appoints the Escrow Bank as escrow bank for all purposes of this Escrow Deposit and Trust Agreement and in accordance with the terms and provisions of this Escrow Deposit and Trust Agreement, and the Escrow Bank hereby accepts such appointment. Section 3. Establishment of Escrow Fund. There is hereby created by the Agency with, and to be held by, the Escrow Bank, as security for the payment of the principal of and interest on the 1993 Bonds as hereinafter set forth, an irrevocable escrow to be maintained in trust by the Escrow Bank on behalf of the Agency and for the benefit of the owners of the 1993 Bonds, said escrow to be designated the "Escrow Fund." All moneys and Federal Securities deposited in the Escrow Fund shall constitute a special fund for the payment of the principal of and interest on the 1993 Bonds in accordance with the provisions of the 1993 Indenture. If at any time the Escrow Bank shall receive actual knowledge that the moneys and Federal Securities in the Escrow Fund will not be sufficient to make any payment required by Section 5 hereof, the Escrow Bank shall notify the Agency of such fact and the Agency shall immediately cure such deficiency. Section 4. Deposit into Escrow Fund; Investment of Amounts. Concurrently with delivery of the 2002 Bonds, the Agency shall cause to be transferred to the Escrow Bank for deposit into the Escrow Fund the amount of $. in immediately available funds, $. of which shall be derived from the proceeds of sale of the 2002 Bonds, and $. of which shall be derived from the. account under the 1993 Indenture. Of the amounts deposited in the Escrow Fund pursuant to the preceding paragraph, the Escrow Bank shall invest the sum of $. in the Federal Securities set forth in Exhibit A attached hereto and by this reference incorporated herein (the "Escrowed Federal Securities") and shall hold the remaining amount ($ ) in cash, uninvested. The Escrowed Federal Securities shall be deposited with and held by the Escrow Bank in the Escrow Fund solely for the uses and purposes set forth herein. The Escrow Bank shall not be liable or responsible for any loss resulting from any investment or reinvestment made pursuant to this Escrow Deposit and Trust Agreement and in full compliance with the provisions hereof. -2- Section 5. Instructions as to Application of Deposit. The total amount of Escrowed Federal Securities and uninvested moneys deposited in the Escrow Fund pursuant to Section 4 shall be applied by the Escrow Bank for the sole purpose of redeeming in full all outstanding 1993 Bonds on ,2002, by paying on such date the redemption price of the 1993 Bonds, being 101% of the then outstanding principal amount thereof, plus accrued interest to the redemption date, as more particularly set forth in Exhibit B attached hereto and hereby made a part hereof. The Escrow Bank, in its capacity as trustee under the 1993 Indenture, shall give notice of such redemption as provided in Section 4.03 of the 1993 Indenture. Following the final payment of the 1993 Bonds, together with accrued interest to the payment date, the Escrow Bank shall transfer any remaining amounts relating to the 1993 Bonds to the 2002 Trustee for deposit in the Interest Account of the Debt Service Fund created and maintained by the 2002 Trustee pursuant to the 2002 Indenture and applied as a credit against payments of principal of and interest on the 2002 Bonds. Section 6. Investment of Any Remaining Moneys. At the written direction of the Agency Treasurer, the Escrow Bank shall invest and reinvest the proceeds received from any of the Escrowed Federal Securities, and the cash originally deposited into the Escrow Fund, for a period ending not later than June 1, 2002, in Federal Securities; provided, however, that (a) such written directions of the Agency shall be accompanied by an opinion of nationally recognized bond counsel ("Bond Counsel") that investment in accordance with such directions will not affect, for Federal income tax purposes, the exclusion from gross income of interest due with respect to the 1993 Bonds or the 2002 Bonds, and (b) if the Agency directs such investment or reinvestment to be made in United States Treasury Securities--State and Local Government Series, the Agency shall, at its cost, cause to be prepared all necessary subscription forms therefor in sufficient time to enable the Escrow Bank to acquire such securities. The Escrow Bank shall be entitled to conclusively rely on and shall be fully protected in relying on such written directions of the Agency, such opinion of Bond Gounsel and such verification by a certified public accountant. In the event that the Agency Treasurer shall fail to file any such written directions with the Escrow Bank concerning the reinvestment of any such proceeds, such proceeds shall be held uninvested by the Escrow Bank. Any interest income resulting from investment or reinvestment of moneys pursuant to this Section 6 and not required for the purposes set forth in Section 5 shall be transferred to the 2002 Trustee for deposit in the Interest Account of the Debt Service Fund created and maintained by the 2002 Trustee pursuant to the 2002 Indenture and applied as a credit against payments of principal of and interest on the 2002 Bonds. The Escrow Bank may utilize any of its corporate affiliates as a depository to hold any uninvested moneys on behalf of the Escrow Bank in accordance with this Escrow Deposit and Trust Agreement. Section 7. Substitution or Withdrawal of Federal Securities. The Agency may, at any time, direct the Escrow Bank in writing to substitute Federal Securities for any or all of the Escrowed Federal Securities then deposited in the Escrow Fund, or to withdraw and transfer to the Agency any portion of the Federal Securities then deposited in the Escrow Fund, provided that any such direction and substitution or withdrawal shall be simultaneous and shall be accompanied by: (a) a certification of an independent certified public accountant or firm of certified public accountants of favorable national reputation experienced in the refunding of obligations of political subdivisions that the Federal Securities then to be so deposited in the Escrow Fund together with interest to be derived therefrom, or in the case of withdrawal the Federal Securities to be remaining in the Escrow Fund following such withdrawal together with the interest to be derived therefrom, shall be in an amount at all times at least sufficient to make the payments specified in Section 5 hereof; and (b) an opinion of Bond Counsel that the substitution or withdrawal will not affect, for Federal income tax purposes, the exclusion from gross income of interest due with respect to the 1993 Bonds or the 2002 Bonds. The Escrow Bank shall be entitled to conclusively rely on and shall be fully protected in relying on such written directions of the Agency, such opinion of Bond Counsel and such verification by a certified public accountant. In the event that, following any such substitution of Federal Securities pursuant to this Section 7, there is an amount of moneys or Federal Securities in excess of an amount sufficient to make the payments required by Section 5 hereof, as such excess is identified in the certification of such independent certified public accountant and provided that all amounts due the Escrow Bank have been paid in full, such excess shall be transferred to the 2002 Trustee for deposit in the Interest Account of the Debt Service Fund created and maintained by the 2002 Trustee pursuant to the 2002 Indenture and applied as a credit against payments of interest on the 2002 Bonds. Section 8. Application of Surplus Funds. Any amounts remaining on deposit in any fund or account established under the 1993 Indenture, including any investment earnings received after the date of original delivery of the 2002 Bonds, shall be transferred to the 2002 Trustee for deposit in the Interest Account of the Debt Service Fund created and maintained by the 2002 Trustee pursuant to the Indenture and applied as a credit against payments of interest on the 2002 Bonds. Section 9. Application of Cedain Terms of 1993 Indenture. All of the terms of the 1993 Indenture relating to the making of payments of principal of and interest on the 1993 Bonds are incorporated in this Escrow Deposit and Trust Agreement as if set forth in full herein. The provisions of the 1993 Indenture affording protections and limitations of liability to the 1993 Trustee and relating to the resignation and removal of the 1993 Trustee are also incorporated in this Escrow Deposit and Trust Agreement as if set forth in full herein and shall be the procedure to be followed with respect to any resignation or removal of the Escrow Bank hereunder. Section 10. Compensation to Escrow Bank. The Agency shall pay the Escrow Bank full compensation for its duties under this Escrow Deposit and Trust Agreement, including out-of- pocket costs such as publication costs, legal fees and other costs and expenses relating hereto and, in addition, fees, costs and expenses relating to the purchase of any Federal Securities after the date hereof, pursuant to a separate agreement between the Agency and the Escrow Bank. Under no circumstances shall amounts deposited in the Escrow Fund be deemed to be available for said purposes. The obligation of the Agency under this Section 10 to pay compensation already earned by the Escrow Bank and to pay costs and expenses already incurred shall survive termination of this Escrow Deposit and Trust Agreement and shall survive the resignation or removal of the Escrow Bank. Section 11. Liabilities and Obliqations of Escrow Bank. The Escrow Bank shall have no obligation to make any payment or disbursement of any type or incur any financial liability in the performance of its duties under this Escrow Deposit and Trust Agreement unless the Agency shall have deposited sufficient funds with the Escrow Bank. The Escrow Bank may rely and shall be protected in acting upon the written or oral instructions of the Agency or its agents relating to any matter or action as Escrow Bank under this Escrow Deposit and Trust Agreement. The protections, immunities and limitations from liability provided to the 1993 Trustee under the 1993 Indenture shall be afforded the Escrow Bank hereunder and are incorporated herein by reference. The Escrow Bank and its respective successors, assigns, agents and servants shall not be held to any personal liability whatsoever, in tort, contract, or otherwise, in connection with the execution and delivery of this Escrow Deposit and Trust Agreement, the establishment of the -4- Escrow Fund, the acceptance of the moneys or any securities deposited therein, the purchase of the securities to be purchased pursuant hereto, the retention of such securities or the proceeds thereof, the sufficiency of the securities or any uninvested moneys held hereunder to accomplish the defeasance of the 1993 Bonds, or any payment, transfer or other application of moneys or securities by the Escrow Bank in accordance with the provisions of this Escrow Deposit and Trust Agreement or by reason of any non-negligent act, non-negligent omission or non-negligent error of the Escrow Bank made in good faith in the conduct of its duties. The recitals of fact contained in the "whereas" clauses herein shall be taken as the statement of the Agency, and the Escrow Bank assumes no responsibility for the correctness thereof. The Escrow Bank makes no representations as to the sufficiency of the securities to be purchased pursuant hereto and any uninvested moneys to accomplish the payment of the 1993 Bonds pursuant to the 1993 Indenture or to the validity of this Escrow Deposit and Trust Agreement as to the Agency and, except as otherwise provided herein, the Escrow Bank shall incur no liability in respect thereof. The Escrow Bank shall not be liable in connection with the performance of its duties under this Escrow Deposit and Trust Agreement except for its own negligence, willful misconduct or default, and the duties and obligations of the Escrow Bank shall be determined by the express provisions of this Escrow Deposit and Trust Agreement and no implied duties shall be read into this Escrow Deposit and Trust Agreement against the Escrow Bank. The Escrow Bank may consult with counsel, who may or may not be counsel to the Agency, and in reliance upon the written opinion of such counsel shall have full and complete authorization and protection in respect of any action taken, suffered or omitted by it in good faith in accordance therewith. The Agency hereby assumes liability for, and hereby agrees (whether or not any of the transactions contemplated hereby are consummated), to the extent permitted by law, to indemnify, protect, save and hold harmless the Escrow Bank and its respective successors, assigns, agents and servants from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including legal fees and disbursements) of whatsoever kind and nature which may be imposed on, incurred by, or asserted against, at any time, the Escrow Bank (whether or not also indemnified against by any other person under any other agreement or instrument) and in any way relating to or arising out of the execution and delivery of this Escrow Deposit and Trust Agreement, the establishment of the Escrow Fund, the retention of the moneys therein and any payment, transfer or other application of moneys or securities by the Escrow Bank in accordance with the provisions of this Escrow Deposit and Trust Agreement, or as may arise by reason of any act, omission or error of the Escrow Bank made in good faith in the conduct of its duties; provided, however, that the Agency shall not be required to indemnify the Escrow Bank against its own negligence or willful misconduct. The indemnities contained in this Section 11 and the compensation and reimbursement of expenses set forth in Section 10 shall survive the termination of this Escrow Deposit and Trust Agreement. Whenever, in the administration of this Escrow Deposit and Trust Agreement, the Escrow Bank 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 negligence or willful misconduct on the part of the Escrow Bank, be deemed to be conclusively proved and established by a certificate of an authorized representative of the Agency, and such certificate shall, in the absence of negligence or willful misconduct on the part of the Escrow Bank, be full warrant to the Escrow Bank for any action taken or suffered in good faith by it under the provisions of this Escrow Deposit and Trust Agreement. -5- The Escrow Bank shall not be responsible for any of the recitals or representations contained herein. The Escrow Bank shall not be liable for the accuracy of any calculations provided as to the sufficiency of moneys or the Federal Securities deposited with it to pay the principal of and interest on the 1993 Bonds. The Escrow Bank shall incur no liability for losses arising from any investment or other disposition made pursuant to and in accordance with this Escrow Deposit and Trust Agreement. Any bank, federal savings association or trust company into which the Escrow Bank may be merged or with which it may be consolidated shall become the Escrow Bank without any action of the Agency. The Escrow Bank shall have no liability or obligation to the holders of the 1993 Bonds or the 2002 Bonds with respect to the payment of debt service by Agency or with respect to the observance or performance by the Agency of the other conditions, covenants and terms contained in the 1993 Indenture or with respect to the investment of any moneys in any fund or account established, held or maintained by the Agency pursuant to 1993 Indenture. The Escrow Bank shall not be liable for any error of judgment made in good faith by an authorized officer. The Escrow Bank may at any time resign by giving written notice to the Agency, which notice shall indicate the date (not earlier than 60 days after receipt by the Agency of such notice) on which the resignation is to be effective (the "resignation date"). The Agency shall promptly appoint a successor Escrow Bank by the resignation date. Resignation of the Escrow Bank will be effective upon acceptance of appointment by a successor Escrow Bank. If the Agency does not appoint a successor Escrow Bank by the resignation date, the Escrow Bank may petition any court of competent jurisdiction for the appointment of a successor Escrow Bank, which court may thereupon, after such notice, if any, as it may deem proper and prescribe and as may be required by law, appoint a successor Escrow Bank. The Agency may at any time terminate the services of the Escrow Bank and appoint a new Escrow Bank hereunder, such termination to take effect only upon acceptance Of the appointment by the replacement Escrow Bank. Section 12. Amendment. This Escrow Deposit and Trust Agreement may be modified or amended at any time by a supplemental agreement which shall become effective when the written consents of the owners of one hundred percent (100%) in aggregate principal amount of the 1993 Bonds then outstanding shall have been filed with the Escrow Bank. This Escrow Deposit and Trust Agreement may be modified or amended at any time by a supplemental agreement, without the consent of any such owners, but only (1) to add to the covenants and agreements of any party, other covenants to be observed, or to surrender any right or power herein or therein reserved to the Agency, (2) to cure, correct or supplement any ambiguous or defective provision contained herein, (3) in regard to questions arising hereunder or thereunder, as the parties hereto or thereto may deem necessary or desirable and which, in the opinion of counsel, shall not materially adversely affect the interests of the owners of the 1993 Bonds or the 2002 Bonds, and that such amendment will not cause interest on the 1993 Bonds or the 2002 Bonds to become subject to federal income taxation. Section 13. Severability. If any section, paragraph, sentence, clause or provision of this Escrow Deposit and Trust Agreement shall for any reason be held to be invalid or -6- unenforceable, the invalidity or unenforceability of such section, paragraph, sentence, clause or provision shall not affect any of the remaining provisions of this Escrow Deposit and Trust Agreement. Section 14. Notice of Escrow Bank; A,qency. Any notice to or demand upon the Escrow Bank may be served and presented, and such demand may be made, at the principal corporate trust office of the Escrow Bank at U.S. Bank, N.A., 550 South Hope Street, Suite 500, Los Angeles, California 90071, Attention: Corporate Trust Department (or such other address as may have been filed in writing by the Escrow Bank with the Agency). Any notice to or demand upon the Agency shall be deemed to have been sufficiently given or served for all purposes by being mailed by registered or certified mail, and deposited, postage prepaid, in a post office letter box, addressed to the Agency at City of Temecula, 43200 Business Park Drive, Temecula, California 92590, Attention: Director of Finance (or such other address as may have been filed in writing by the Agency with the Escrow Bank). ~ Section 15. Mer,qer or Consolidation of Escrow Bank. Any company into which the Escrow Bank may be merged or converted or with which may it 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 Escrow Bank may sell or transfer all or substantially all of its corporate trust business, provided such company shall be eligible to act as trustee under the 1993 Indenture, shall be the successor hereunder to the Escrow Bank without the execution or filing of any paper or any further act. Section 16. Execution of Counterparts. This Escrow Deposit and Trust Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original and all of which shall together constitute but one and the same instrument. Section 17. Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any moneys held by the Escrow Bank in trust for the payment and discharge of the principal of, premium and the interest on the 1993 Bonds which remain unclaimed for two (2) years after , 2002, if such moneys were held by the Escrow Bank at such date, shall be repaid by the Escrow Bank to the Agency as its absolute property free from any trust, and the Escrow Bank shall thereupon be released and discharged with respect thereto and the owners of such 1993 Bonds shall look only to the Agency for the payment of the principal of, premium and interest on such 1993 Bonds. Any right of any owner of the 1993 Bonds to look to the Agency for such payment shall survive only so long as required under applicable law. Section 18. Governin,q Law. This Escrow Deposit and Trust Agreement shall be construed and governed in accordance with the laws of the State of California applicable to contracts made and per[ormed in the State. IN WITNESS WHEREOF, the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA has caused this Escrow Deposit and Trust Agreement to be signed in its name by its Executive Director and U.S. BANK, N.A., in token of its acceptance of the trust created hereunder, has caused this Escrow Deposit and Trust Agreement to be signed in its corporate name by its officer identified below, all as of the day and year first above written. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Shawn D. Nelson, Executive Director U.S. BANK, N.A., as Escrow Bank By Authorized Officer -8- EXHIBIT A SCHEDULE OF ESCROWED FEDERAL SECURITIES Maturity Type Date Coupon Par Amount Price Cost Accrued Total Cost EXHIBIT B PAYMENT SCHEDULE OF 1993 BONDS Redemption Called Redemption Total Date Principal Interest Premium Payment _/__/02 $11,715,000.00 $ $117,150.00 $ CONTINUING DISCLOSURE CERTIFICATE APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (this "Disclosure Certificate") is executed and delivered by the Redevelopment Agency of the City of Temecula (the "Agency") and acknowledged by U.S. Bank, N.A., a national banking association organized and existing under and by virtue of the laws of the United States of America, as trustee (the "Trustee"), and in its capacity as dissemination agent (the "Dissemination Agent"), in connection with the issuance of $ Redevelopment Agency of the City of Temecula (Temecula Redevelopment Project No. 1) 2002 Tax Allocation Bonds (the "Bonds"). The Bonds are being issued pursuant to an Indenture of Trust, dated as of April 1, 2002 (the "Indenture"), by and between the Agency and the Trustee. Pursuant to Section 5.13 of the Indenture, the Agency covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Agency for the benefit of the Owners and Beneficial Owners (as defined below) of the Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). Section 2. Definitions. In addition, to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Certificate, unless otherwise defined, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Agency pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Beneficial Owners" shall mean any person who (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Disclosure Representative" shall mean the Executive Director of the Agency, or his or her designee, or such other officer or employee as the Agency shall designate in writing to the Trustee fi.om time to time. "Dissemination Agent" shall mean U.S. Bank, N.A., or any successor Dissemination Agent designated in writing by the Agency and which has filed with the Agency and the Trustee a written acceptance of such designation. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate. TEMRDA CDAc.wpd/LPJ3$$ E-1 "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 Interact at www.sec.gov/consumer/nrmsir.htm. "Official Statement" shall mean the Official Statement dated April __, 2002, prepared and distributed in connection with the initial sale of the Bonds. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "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 Certificate, there is no State Repository. Section 3. Provision of Annual Reports. (a) The Agency shall provide, or shall cause the Dissemination Agent to provide, each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate not later than eight (8) months after the end of the Agency's fiscal year (which date currently would be the first day of [March], based upon the June 30 end of the Agency's fiscal year), commencing with the report for the 2001/2002 fiscal year. (b) Not later than fifteen (15) Business Days prior to said date, the Agency shall provide the Annual Report in a form suitable for reporting to the Repositories to the Dissemination Agent (if other than the Agency) and the Trustee. 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 4 of this Disclosure Certificate; provided that the audited financial statements of thc Agency may be submitted separately from the balance of the Annual Report, and later than the date required above for the filing of the Annual Report if not available by that date. If the Agency's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(c). (c) If the Agency is unable to provide to the Repositories an Annual Report by the date required in subsection (a), the Agency shall send a notice to the Municipal Securities Rulemaking Board in substantially the form attached as Exhibit A. (d) The Dissemination Agent shall: E-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) if the Dissemination Agent is other than the Agency, and if, and to the extent, the Agency has provided an Annual Report in final form to the Dissemination Agent for dissemination, file a report with the Agency and the Trustee certifying that the Annual Report has been provided to the Repositories pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories to which it was provided. Section 4. Content of Annual Reports. The Agency's Annual Report shall contain or incorporate by reference the following: (a) Audited Financial Statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the Agency's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) The following financial information and operating data set forth in the final Official Statement: (i) Ten largest property tax payers in the Project Area, including name, secured value, unsecured value, total value and percent of total value substantially in the format set forth as Table [2] of the Official Statement; (ii) Annual assessed valuations, tax increment values, Tax Increment Revenues (as defined in the Indenture) and coverage ratio of Tax Increment Revenues to debt service on Bonds and all Parity Debt, in substantially the format set forth as Tables [1, 3 and 4] of the Official Statement; and (iii) Discussion of any property tax appeals, which, either alone or in the aggregate could have a material adverse effect on Tax Increment Revenues. (c) Information relating to the Bonds following the [August] 1 interest payment date as follows: (i) Balances in all funds and accounts maintained with respect to the Bonds; (ii) A statement of the Reserve Requirement; and (iii) The Outstanding principal amount of the Bonds and any Parity Debt. TEMRDA CDA¢.wlxt/LR/388 E-3 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 Agency or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available fi.om the Municipal Securities Rulemaking Board. The Agency shall clearly identify each such other document so included by reference. Section 5. Reporting of Significant Events. (a) Pursuant to the provisions of this Section 5, the Agency shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material: (i) Principal and interest payment delinquencies; (ii) Non-payment related defaults; (iii)Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to 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; and (xi) Rating changes. (b) Whenever the Agency obtains knowledge of the occurrence of a Listed Event, the Agency shall as soon as possible determine if such event would be material under applicable Federal securities law. The Dissemination Agent shall have no responsibility for such determination and shall be entitled to conclusively rely on the Agency's determination. (c) If the Agency determines that knowledge of the occurrence of a Listed Event would be material under applicable Federal securities law, the Agency shall promptly file a notice of such occurrence with the National Repositories or with the Municipal Securities Rulemaking Board (and each State Repository). Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(viii) and (ix) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Owners of affected Bonds pursuant to the Indenture. Section 6. Termination of Reporting Obligation. The Agency's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds or upon the delivery to the Dissemination Agent of an opinion of nationally recognized bond counsel to the effect that continuing disclosure is no longer required. If such termination occurs prior to the final maturity of the Bonds, the Agency shall give notice of such termination in the same manner as for a Listed Event under Section 5(c). TEMP. DA CDAc.wtxt/LR/3 $ $ E-4 Section 7. Dissemination Agent. (a) The Agency may, fi.om time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign by providing thirty days notice to the Agency and the Trustee. The Dissemination Agent shall not be responsible for the content of any report or notice prepared by the Agency. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the Agency in a timely manner and in a form suitable for filing. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Agency pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be U.S. Bank, N.A.. If at any time there is no designated Dissemination Agent appointed by the Agency, or if the Dissemination Agent so appointed is unwilling or unable to perform the duties of Dissemination Agent hereunder, the Agency shall be the Dissemination Agent and undertake or assume its obligations hereunder. Any company succeeding to all or substantially all of the Dissemination Agent's corporate trust business shall be the successor to the Dissemination Agent hereunder without the execution or filing of any paper or any further act. The Dissemination Agent may resign its duties hereunder at any time upon written notice to the Agency. (b) The Dissemination Agent shall be paid compensation by the Agency for its services provided hereunder in accordance with its schedule of fees as agreed to between the Dissemination Agent and the Agency fi.om time to time and for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the Agency hereunder and shall not be deemed to be acting in any fiduciary capacity for the Agency, Owners or Beneficial Owners or any other party. The Dissemination Agent may rely and shall be protected in acting or refraining from acting upon any direction from the Agency or an opinion of nationally recognized bond counsel. Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Agency may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in cimumstances that arises fi.om a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the tune 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 TEMRDA CDAc.w~8$ E-5 (c) the proposed amendment or waiver either (i) is approved by Owners of the Bonds in the manner provided in the Indenture for amendments to the Indenture 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. In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Agency shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Commission. 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 Agency to 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 5(c). Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Agency from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Agency chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Agency shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Section 10. Default. In the event of a failure of the Agency to comply with any provision of this Disclosure Certificate, any Participating Underwriter 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 Agency to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the Agency to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Duties, Immunities and Liabilities of Dissemination Agent. All of the immunities, indemnities, and exceptions from liability in Article VI of the Indenture insofar as they TEMPd)A CDAc.wpd/Lg,/3 8 8 E-6 relate to the Trustee shall apply to the Trustee and the Dissemination Agent in this Disclosure Certificate. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Agency agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exemise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The Dissemination Agent may rely and shall be protected in acting or refraining fi.om acting upon any direction from the Agency or an opinion ofnationaily recognized bond counsel. The obligations of the Agency under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. No person shall have any right to commence any action against the Trustee or Dissemination Agent seeking any remedy other than to compel specific performance of this Disclosure Certificate. Section 12. Beneficiaries. This Disclosure Certificate shall inure solelyto the benefit of the Agency, the Dissemination Agent, the Participating Underwriters and Owners and Beneficial Owners fi.om time to time of the Bonds, and shall create no rights in any other person or entity. Dated: ,2002 REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Executive Director ACCEPTANCE OF DISSEMINATION AGENT AND TRUSTEE: The undersigned hereby accepts the designation of Dissemination Agent and agrees to comply with the duties set forth in the foregoing Continuing Disclosure Agreement as Dissemination Agent and Trustee. U.S. BANK, N.A. U.S. BANK, N.A. as Dissemination Agent as Trustee By By Authorized Signatory Authorized Signatory TEMRDA CDAc.wpd/LR/388 E-7 EXHIBIT A NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: Redevelopment Agency of the City of Temecula Name of Bond Issue: $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds Date of Issuance: ., 2002 NOTICE IS HEREBY GIVEN that the Redevelopment Agency of the City of Temecula (the "Agency") has not provided an Annual Report with respect to the above-named Bonds as required by Section 5.13 of the Indenture of Trust, dated as of April 1, 2002, by and between the Agency, and U.S. Bank, N.A., as trustee. The Agency anticipates that the Annual Report will be filed by Dated: REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Name: Title: cc: Trustee E-9 BOND PURCHASE AGREEMENT $ REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO. 1 2002 TAX ALLOCATION BONDS BOND PURCHASE AGREEMENT April ,2002 Redevelopment Agency of the City of Temecula 43174 Business Park Drive Temecula, California 92590 Temecula Public Financing Authority 43174 Business Park Drive Temecula, California 92590 Ladies and Gentlemen: Stone & Youngberg LLC (hereinafter referred to as the "Underwriter"), offers to enter into this Bond Purchase Agreement (the "Bond Purchase Agreement") with the Redevelopment Agency of the City of Temecula (herein referred to as the "Agency") and the Temecula Public Financing Authority (herein referred to as the "Authority"), which will be binding upon the Agency and the Underwriter upon the acceptance hereof by the Agency and the Authority. This offer is made subject to the acceptance hereof by the Agency and the Authority by execution of this Bond Purchase Agreement and its delivery to the Underwriter on or before 5:00 ?.M., California time, on the date hereof. All capitalized terms used herein but not defined herein shall have the meanings ascribed thereto in the Indenture (as hereinafter defined). 1. Purchase and Sale. Upon the terms and conditions and upon the basis of the representations, warranties and agreements hereinafter set forth, the Authority agrees to purchase from the Agency, and the Agency agrees to sell and deliver to the Authority, and the Underwriter hereby agrees to purchase from the Authority, and the Authority agrees to sell and deliver to the Underwriter, all (but not less than all) of $ aggregate principal amount of Redevelopment Agency o fthe City ofTemecula, Temecula Redevelopment Project No. 1,2002Tax Allocation Bonds (the "Bonds"), at the purchase price of $ (which is the aggregate principal amount of the Bonds, less an underwriting discount of $ , less original issue discount of $ The Bonds will be dated May__, 2002 and will have the maturities, bear interest at the rates and will be subject to redemption as set forth on Exhibit A hereto. 2. Authorizing Instruments and Law. The Bonds will be issued pursuant to Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Govemment Code, commencing TEMRDA BPAd. wpd/LR/388 with section 53570 of said Code (the "Law"), Resolution No. RDA 02-___, adopted by the Agency on March 26, 2002 (the "Resolution"), and an indenture of trust, dated as of 1, 2002 (the "Indenture"), between the Agency and U.S. Bank, N.A., as trustee (the "Trustee"). The proceeds of the Bonds will be used to (i) refinance certain redevelopment activities of the Agency within or of benefit to the Redevelopment Project (the "Project Area") pursuant to the Redevelopment Plan (as defined herein) and specifically to refund the Agency's Temecula Redevelopment Project No. 1 1993 Tax Allocation Bonds, Series A (the "Prior Bonds"); (ii) discharge an obligation of the Agency to the County of Riverside (the "County") under an Amended and Restated Agreement Between the County, the Redevelopment Agency of the County, the City and the Agency for Reimbursement and Distribution of Tax Increment Funds from the Project Area (including a payment to the County of $6,000,000); (iii) finance redevelopment activities within or of benefit to the Project Area; (iv) make a deposit to the Reserve Account for the 2002 Bonds; and (v) provide for the costs of issuing the 2002 Bonds. The refunding of the Prior Bonds will be accomplished pursuant to an Escrow Deposit and Trust Agreement, dated as of 1, 2002 (the "Escrow Agreement"), by and between the Agency and U.S. Bank, N.A., as escrow bank (the "Escrow Bank"). The Bonds will be special obligations of the Agency and are payable solely from and secured by a pledge of the Tax Increment Revenues (as defined in the Indenture), on a parity with any Parity Debt (as defined in the Indenture) and a pledge of amounts in certain funds and accounts established under the Indenture, all as further described in the Indenture and Official Statement (described below). 3. Public Offering. The Agency hereby ratifies, confirms and approves of the use and distribution by the Underwriter prior to the date hereof of the preliminary official statement dated April , 2002, relating to the Bonds (the "Preliminary Official Statement"), which official statement the Agency has deemed final as of its date for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (the "Rule'), except for information permitted to be omitted therefrom by the Rule. Within seven (7) business days from the date hereof(or such earlier date so as to allow the Underwriter to meet its obligations under the Rule and Rule G-32 of the Municipal Securities Rulemaking Board), the Agency shall deliver to the Underwriter a final official statement relating to the Bonds, executed on behalf of the Agency by an authorized representative of the Agency and dated the date hereof to the Underwriter, which shall include information permitted to be omitted in the Preliminary Official Statement by paragraph Co)(1)~ofthe Rule and with such other amendments or supplements as shall have been approved by the Agency and by the Underwriter (the "Final Official Statement"). The Preliminary Official Statement and the Final Official Statement, including the cover pages, summary statements and the appendices thereto, and all information incorporated therein by reference are hereinafter referred to collectively as the "Official Statement." The Underwriter agrees that it will not confirm the sale of any Bonds unless the confirmation of sale is accompanied or preceded by the delivery of a copy of the final Official Statement. TEIVffiDA BPAd.wI~i/LR~ 88 2 The Agency further authorizes the Underwriter to use, in connection with the offer and sale of the Bonds, the Official Statement, that certain Continuing Disclosure Certificate, dated as of _, 2002 (the "Continuing Disclosure Certificate"), the Escrow Agreement and the Indenture (all such documents referred to in this sentence, together with the Bond Purchase Agreement are hereinafter collectively referred to as the "Financing Documents"), and all information contained herein and therein and all other documents, agreements, certificates or written statements furnished by the Agency to the Underwriter or entered into by the Agency in connection with the transactions contemplated by this Bond Purchase Agreement and the Bonds. The Agency will undertake, pursuant to the Indenture and the Continuing Disclosure Certificate, to provide certain annual financial information and notices of the occurrence of certain events, if material. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the Final Official Statement. The Underwriter agrees to make a bona fide offering of all the Bonds initially at the public offering prices (or yields) set forth on the cover page of the Official Statement. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) as they deem 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. 4. The Closing. At 8:00 A.M., California time, on May ,2002, or at such other time or on such earlier or later business day as shall have been mutually agreed upon by the Authority, the Agency and the Underwriter, the Agency will release the Bonds to the Authority, and the Authority will, subject to the terms and conditions hereof, cause The Depository Trust Company in New York, New York ("DTC") to release the Bonds for the beneficial ownership of the Underwriter and will deliver to the Underwriter the other documents hereinafter mentioned at the offices of Quint & Thimmig LLP, San Francisco, California ("Bond Counsel"), or another place to be mutually agreed upon by the Agency and the Underwriter. The Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in Section 1 hereof payable in immediately available funds to the order of the Agency on the date of Closing (as hereinafter defined). This payment and delivery, together with the delivery of the aforementioned documents, is herein called the "Closing." 5. Agency Representations, Warranties and Covenants. The Agency represents, warrants and covenants to the Underwriter and the Authority that: (a) The Agency is a public body, corporate and politic, organized and existing under the Constitution (the "Constitution") and laws of the State, including the Law, with full right, power and authority to sell, issue and deliver the Bonds to the Authority for sale to the Undera~riter as provided herein, and to execute, deliver and perform its obligations under the Bonds, this Bond Purchase Agreement, the Continuing Disclosure Certificate, the Indenture and the Escrow Agreement. Co) This Bond Purchase Agreement, the Bonds, the Continuing Disclosure Certificate, the Escrow Agreement and the Indenture, when duly executed and delivered by all parties thereto, will constitute valid, legal and binding obligations of the Agency enfomeable aga'mst the Agency in TE M~,DA BPAiLwpd/LR/388 3 accordance with their respective terms, except as the enforceability thereof may be limited by the application of equitable principles, if equitable remedies are sought, or by applicable bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' fights generally. (e) The Agency has, and at the date of the Closing will have the full legal right, power and authority to enter into this Bond Purchase Agreement, the Continuing Disclosure Certificate, the Escrow Agreement and the Indenture, to issue and deliver the Bonds for sale to the Authority and resale to the Underwriter as provided herein, and will have duly authorized and approved the execution and delivery of, and the performance by the Agency of its obligations contained in, the Bonds, this Bond Purchase Agreement, the Continuing Disclosure Certificate, the Escrow Agreement and the Indenture. (d) As of the date thereof, the Official Statement 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 light of the circumstances under which they were made, not misleading. (e) If between the date hereof and the date which is 25 days after the End of the Underwriting Period (as hereinafter defined) for the Bonds, an event occurs of which the Agency has knowledge and which might or would cause the information contained in the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the information therein, in the light of the circumstances under which it was presented, not misleading, the Agency will notify the Underwriter, and, if in the opinion of the Agency, the Undem,titer or its counsel, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Agency will forthwith prepare and furnish to the Underwriter (at the expense of the Agency) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to Bond Counsel and Counsel for the Underwriter) which will amend or supplement the Official Statement so that it will not contain any untrue statement ora 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 Bond purchasers, not misleading. For the purposes of this subsection, between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, the Agency will furnish such information with respect to itself as the Underwriter may from time to time reasonably request. (f) If the information contained in the Official Statement is amended or supplemented pursuant to paragraph (e) hereof, at the time of each supplement or amendment thereto, the portions of the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the information therein, in the light of the circumstances under which it was presented, not misleading. (g) As used herein and for the purposes of the foregoing, the term "End of the Underwriting Period" for the Bonds shall mean the earlier of (i) the Closing Date unless the Agency shall have been notified in writing to the contrary by the Undemzriter on or prior to the Closing Date, or (ii) the TEMRDA BPAd.w~I/LRB88 4 date on which the End of the Underwriting Period for the Bonds has occurred under the Rule; provided, however, that the Agency may treat as the End of the Underwriting Period for the Bonds the date specified as such in a notice from the Underwriter stating the date which is the End of the Underwriting Period. (h) At the time of the Closing, there shall not have been any material adverse changes in the financial condition ofthe Agency or any material adverse change in the valuation o ftaxable property in the Project Area (as described in the Official Statement) since the date of the final Official Statement. (i) As of the time of acceptance hereof and as of the time of the Closing, the Agency is not and will not be in material breach of or in material default under any applicable law or administrative regulation of the State or in the United States of America, or any applicable judgment or decree or any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other instrument to which the Agency is a party or is otherwise subject which breach would have a material adverse effect on the Bonds; and, as of such times, the execution and delivery by the Agency of this Bond Purchase Agreement, the Indenture, the Continuing Disclosure Certificate, the Escrow Agreement and the Bonds, and compliance by the Agency with the provisions of each of such agreements or instruments do not and will not conflict with or constitute a breach of or default under any applicable law or administrative regulation of the State or the United States of America applicable to the Agency or any applicable judgment or decree or any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other instrument to which the Agency is a party or is otherwise subject which breach or default would have a material adverse effect on the Bonds. (j) Between the time of acceptance hereof and the Closing, the Agency will not, without the prior written consent of the Underwriter, issue any bonds or securities with a pledge of or lien on the Tax Increment Revenues. (k) As of the time of acceptance hereof and the Closing, and except as described in the Official Statement, no litigation is or will be pending and served upon the Agency or, to the knowledge of the Agency, threatened in any court (i) in any way challenging any member of the Agency, or the Chairperson of the Agency, to their respective offices, or (ii) seeking to restrain or enjoin the issuance or delivery of any of the Bonds, or the collection of all the Tax Increment Revenues which are pledged to pay the principal of and interest on the Bonds, or in any contesting or affecting the validity of the Bonds, this Bond Purchase Agreement, the Indenture, the Continuing Disclosure Certificate, the Escrow Agreement or the collection of all of the Tax Increment Revenues, or the pledge of the Tax Increment Revenues, or contesting the powers of the Agency or its authority for the issuance of the Bonds, or (iii) contesting in any way the completeness, accuracy or fairness of the Official Statement. (1) As of the time of acceptance hereof and as of the date of the Closing, the Agency does not and will not have outstanding any indebtedness, which indebtedness is secured by a lien on the TEMRDA BPAd.wpd/LR/388 5 Tax Increment Revenues of the Agency superior to or on a parity with the lien of the Bonds on the Tax Increment Revenues except as otherwise described in the Official Statement. (m) The Agency will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter, at the expense of the Underwriter (except as provided in this paragraph), as it may reasonably request in order 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 of America as the Underwriter may designate; provided, however, that the Agency will not be required to execute a special or general consent to service of process or qualify as a foreign corporation in connection with any such qualification in any jurisdiction. (n) At the time of acceptance hereof and as of the date of the Closing, all approvals, consents or orders required of the Agency by any governmental authority, board, agency or commission having jurisdiction which would constitute conditions precedent to the performance by the Agency of its obligations under this Bond Purchase Agreement, the Bonds, the Indenture and the Continuing Disclosure Certificate have been obtained. (o) The Bonds are secured by a first pledge of and lien on all of the Tax Increment Revenues and all of the moneys on deposit in certain funds and accounts established under the Indenture, including the Special Fund, the Debt Service Fund, the Redemption Account, the Interest Account, the Principal Account, the Sinking Account, the Redemption Account and the Reserve Account, all as provided in, and subject to the provisions of, the Indenture. (p) The Agency is in compliance with its statutory reporting requirements and the Agency has no "excess surplus" as defined in California Health and Safety Code Section 33334.12(g)(i). 6. Representations, Warranties and Agreements of the Authority. The Authority represents, warrants and agrees as follows: (a) The Authority is an entity duly organized and validly existing under the laws of the State of California. (b) The Authority has full legal right, power and authority to enter into this Bond Purchase Agreement, and to perform the actions contemplated hereby. (c) By all necessary official action, the Authority has duly authorized and approved the execution and delivery of, and the performance by the Authority of the obligations in connection with this Bond Purchase Agreement. TEMP~DA BPAd,wpd/LR/388 (d) As of the date hereof, there is no action, suit, proceeding, inquiry or investigation, notice of which has been served on the Authority, at law or in equity before or by any court, government agency, public board or body, pending or to the best knowledge of the officer of the Authority executing this Bond Purchase Agreement, threatened against the Authority, affecting the existence of the Authority or the titles of its officers to their respective offices, or affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Bonds or the execution and delivery or adoption by the Authority of this Bond Purchase Agreement, nor, to the best knowledge of the Authority, is there any basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavorable decision, ruling or finding would materially adversely affect the authorization, execution, delivery or performance by the Authority of this Bond Purchase Agreement. (e) Any certificate signed by any officer of the Authority and delivered to the Underwriter pursuant to this Bond Purchase Agreement, or any document contemplated thereby shall be deemed a representation and warranty by the Authority to the Underwriter as to the statements made therein. 7. Closing Conditions. The Underwriter has entered into this Bond Purchase Agreement in reliance upon the representations, warranties and covenants of the Authority and the Agency contained herein and the performance by the Authority and the Agency o ftheir respective obligations hereunder, both as of the date hereof and as of the date of the Closing. The Underwfiter's obligations under this Bond Purchase Agreement are and shall be subject to the following conditions: (a) At the Closing Date, the Bonds, the Bond Purchase Agreement, the Indenture, the Continuing Disclosure Certificate, the Escrow Agreement and the Official Statement shall have been duly authorized, executed and delivered by the respective parties thereto, in substantially the forms heretofore submitted to the Underwriter with only such changes as shall have been agreed to by the Underwriter, and said agreements 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 Bond Counsel shall deem to be necessary and appropriate; (b) The representations and warranties of the Authority and the Agency contained in this Bond Purchase Agreement, the Indenture, the Escrow Agreement and the Continuing Disclosure Certificate (collectively, the "Bond Documents"), shall be tree and correct in all material respects on the date hereof and on the Closing Date, as if made again on the Closing Date, and the Official Statement (as the same may be supplemented or amended with the written approval of the Underwriter) shall be tree and correct in all material respects and shall not contain any untrue statement or fact or omit to state any fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which such statements were made, not misleading; (c) At the time of the Closing, the Authority and the Agency shall perform or have performed all of their obligations required under or specified in the Financing Documents at or prior to the Closing; TEMRDA BPA~wpd/LR7358 7 (d) At the time of the Closing, no default shall have occurred or be existing under the Bond Documents and the Agency shall not be in default in the payment of principal or interest on any of its indebtedness which default shall materially adversely impact the ability of the Agency to make its payment on the Bonds; (e) In recognition of the desire of the Agency and the Underwriter to effect a successful public offering of the Bonds, and in view of the potential adverse impact of any of the following events on such a public offering, the Underwriter shall have the right to terminate this agreement by written notification to the Agency if at any time at or prior to the Closing; (i) the marketability of the Bonds or the market price thereof, in the reasonable opinion of the Underwriter, has been materially adversely affected by any event occurring which causes any statement contained in the Official Statement to be materially misleading or results in a failure of the Official Statement to state a material fact necessary to make the statements in the Official Statement, in the light of the cimumstances under which they were made, not misleading; or (ii) the marketability of the Bonds or the market price thereof, in the opinion of the Underwriter, has been materially adversely affected by an amendment to the Constitution of the United States of America or by any legislation in or by the Congress of the United States of America or by the State, or the amendment of legislation pending as of the date of this Bond Purchase Agreement in the Congress of the United States of America, or the recommendation to Congress or endorsement for passage (by press release, other form of notice or otherwise) of legislation by the President of the United States of America, the Treasury Department of the United States of America, the Internal Revenue Service or the Chairperson or ranking minority member of the Committee on Finance of the United States Senate or the Committee on Ways and Means of the United States House of Representatives, or the proposal for consideration of legislation by either such Committee or by any member thereof, or the presentment of legislation for consideration as an option by either such Committee, or by the staffofthe Joint Committee on Taxation of the Congress of the United States of America, or the favorable reporting for passage of legislation to either House of the Congress of the United States of America by a Committee of such House to which such legislation has been referred for consideration, or any decision of any federal or State court or any ruling or regulation (final, temporary or proposed) or Official Statement on behalf of the United States Treasury Department, the Internal Revenue Service or other federal or State authority materially adversely affecting the federal or State tax status of the Agency, or the interest on bonds or notes or obligations of the general character of the Bonds; or (iii) 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 shall be rendered which materially adversely affects the market price of the Bonds; or TEIVIRDA BPAd.wpd/LR/388 8 (iv) a stop order, ruling, regulation or Official Statement by, or on behalf of, the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter shall be issued or made to the effect that the issuance, offering or sale of obligations of the general character of the Bonds, or the issuance, offering or sale of the Bonds, including all underlying obligations, as contemplated hereby or by the Official Statement, is in violation or would be in violation of any provision of the federal securities laws, including the Securities Act of 1933, as amended and as then in effect, or that the Indenture need be qualified under the Trust Indenture Act of 1939, as amended and as then in effect; or (v) legislation shall be enacted by the Congress of the United States of America, or a decision by a court of the United States of America shall be rendered, to the effect that obligations of the general character of the Bonds, or the Bonds, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and as then in effect, or that the Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect; or (vi) 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 trade the Bonds; or (vii) a general banking moratorium shall have been established by federal or State authorities; or (viii) the United States of America has become engaged in hostilities which have resulted in a declaration of war or a national emergency or there has occurred any other outbreak 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 of America, being such as, in the reasonable opinion of the Underwriter, would affect materially and adversely the ability of the Underwriter to market the Bonds (it being agreed by the Underwriter that there is no outbreak, calamity or crisis of such character as of the date hereof); or (ix) the rating on any bonds, notes or other obligations of the Agency shall have been downgraded, suspended or withdrawn by a national rating service, which, in the Underwfiter's reasonable opinion, materially adversely affects the market price of the Bonds; or (x) the commencement of any action, suit or proceeding described in paragraph 5(k) hereof, which, in the reasonable judgment of the Underwriter, materially adversely affects the market price of the Bonds. TEMRDA BPAd.wpd/LR/388 9 (f) At or prior to the Closing, the Underwriter shall receive with respect to the Bonds (unless the context otherwise indicates) the following documents: (i) Bond Opinion. The approving opinion of Bond Counsel to the Agency, dated the date of the Closing and substantially in the form included as Appendix D to the Official Statement, together with a letter from such counsel, dated the date of the Closing and addressed to the Underwriter, to the effect that the foregoing opinion addressed to the Agency may be relied upon to the same extent as if such opinion were addressed to them. (ii) Supplemental Opinion. A supplemental opinion or opinions of Bond Counsel addressed to the Underwriter, dated the date of the Closing to the following effect: (A) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended; (B) this Bond Purchase Agreement and the Escrow Agreement have been duly executed and delivered by the Agency and (assuming due authorization, execution and delivery by and validity against the Underwriter) is a valid and binding agreement of the Agency, except as enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting enforcement of creditors' rights and by the application of equitable principles if equitable remedies are sought; and (C) the statements contained in the Official Statement under the captions, "INTRODUCTION," "THE 2002 BONDS," (except for information relating to the Depository Trust Company and the book-entry system for registration of the Bonds) "SECURITY FOR THE 2002 BONDS," and "TAX MATTERS," and in Appendices A and D is accurate, insofar as such statements expressly summarize certain provisions of the Bonds, the Continuing Disclosure Certificate, the Indenture or the Escrow Agreement and the opinion attached as Appendix D to the Official Statement; provided that Bond Counsel need not express any opinion with respect to any financial or statistical information contained therein. (iii) Agency Counsel Opinion. An opinion of the City Attorney, as Counsel to the Agency, dated the date of the Closing and addressed to the Underwriter, to the following effect: (A) the Agency is a public body, corporate and politic, duly organized and validly existing under the laws of the State of California; (B) the Resolution of the Agency approving and authorizing the execution and delivery of the Bonds, the Continuing Disclosure Certificate, the Indenture, the Escrow Agreement and this Bond Purchase Agreement and approving the Official Statement has been duly adopted at a meeting of the governing body of the Agency, TEMRI)A BPAd.wpd/l.~J385 10 which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout and the Resolution is in full force and effect and has not been modified, amended or rescinded; (C) the information in the Official Statement with respect to the Agency and the Project Area is fair and accurate and nothing has come to the attention of such counsel which would lead it to believe that such information (excluding therefrom the financial and statistical data and forecasts included therein as to which no opinion need be expressed) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (D) to the best of such counsel's knowledge, except as otherwise disclosed in the Official Statement, there is no litigation or proceeding, pending and served, or threatened, challenging the creation, organization or existence of the Agency, or the validity of the Bonds, this Bond Purchase Agreement, the Continuing Disclosure Certificate, the Escrow Agreement or the Indenture, or seeking to restrain or enjoin any of the transactions referred to therein or contemplated thereby, or under which a determination adverse to the Agencywould have a material adverse effect upon the Agency's ability to pay principal of and interest on the Bonds when due, or which, in any manner, questions the right of the Agency to issue the Bonds or to use the Tax Increment Revenues for repayment of the Bonds or affects in any manner the right or ability of the Agency to collect or pledge the Tax Increment Revenues or the lien priority thereof; (E) no authorization, approval, consent or other order of the State, any local agency of the State or the City, other than such authorizations, approvals and consents which have been obtained, is required for the valid authorization, execution and delivery by the Agency of the Financing Documents or the Bonds and the authorization and distribution of the Preliminary Official Statement and the Official Statement (provided that no opinion need be expressed as to any action required under state sec~urities or blue sky laws in connection with the purchase or distribution of the Bonds by the Underwriter); (F) the Agency is not in breach of or default under any applicable law or admihistrative regulation of the State or any applicable judgment or decree or any loan agreement, trust agreement, certificate, resolution, agreement or other instrument to which the Agency is a party or is otherwise subject which breach or default would materially adversely affect the Agency's ability to enter into or perform its obligations under the Financing Documents and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument and which would materially adversely affect the Agency's ability to enter into or perform its obligations under the Financing Documents or the Bonds; and TEIvlRDA BPAd.v.~d/LR]388 11 (G) except as described in the Official Statement, interest on the Bonds and costs of issuance are not includable in the calculation of the limitations under the 1991 Settlement Agreement (as defined in the Official Statement); and (H) except as described in the Official Statement with respect to Pass-Through Agreements and the Owner Participation Agreement between the Agency and M&H Realty Parmers IV L/P., no obligations of the Agency have a priority to or are on parity with the Agency's pledge of Tax Increment Revenues to payment of the Bonds and the Agency's outstanding Multifamily Housing Revenue Bonds issued April 25, 1996 and the loan from Washington Mutual Bank, F.A. are not payable from Tax Increment Revenues. (iv) Agency Certificate. A certificate of the Agency, dated the date of the Closing, signed on behalf of the Agency by the Executive Director or other duly authorized officer of the Agency to the effect that: (A) the representations and warranties of the Agency contained herein and in the Indenture, the Escrow Agreement and the Continuing Disclosure Certificate are true and correct in all material respects on and as of the date of the Closing as if made on the date of the Closing; and (B) no event affecting the Agency has occurred since the date of the Official Statement which has not been disclosed therein or in any supplement or amendment thereto which event should be disclosed in the Official Statement in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. (v) Authority Certificate. A certificate of the Authority, dated the date of the Closing, signed on behalf of the Authority by the Executive Director or other duly authorized officer of the Authority to the effect that: (A) the representations and warranties of the Authority contained herein are tree and correct in all material respects on and as of the date of the Closing as if made on the date of the Closing; and 03) no event affecting the Authority has occurred since the date of the Official Statement which has not been disclosed therein or in any supplement or amendment thereto which event should be disclosed in the Official Statement in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. (vi) Disclosure Counsel Opinion. An opinion, dated the date of the Closing and addressed to the Agency and to the Underwriter, of McFarlin & Anderson ("Disclosure Counsel"), stating that without having undertaken to determine independently the accuracy, fairness, or completeness of the statements contained in the Official Statement, and based TEMRDA BPAd.wpd/LR/388 12 upon its participation in the preparation of the Official Statement no information came to the attention of the attomeys in its firm rendering legal services in connection with such representation which cause such firm to believe that, as of the date of the Official Statement or as of the date of the Closing (except for any financial, statistical, economic or engineering data or forecasts, numbers, charts, tables, graphs, estimates, projects, assumptions or expression of opinion, any information about valuation, archaeological or environmental matters, the Appendices thereto or any information about debt service requirements, book-entry, The Depository Trust Company, the Municipal Bond Insurer and its Municipal Bond Insurance Policy (each as hereinafter defined) or tax exemption included therein, as to which no opinion need be expressed) contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the cimumstances under which they were made, not misleading. (vii) Trustee's Certificate. A Certificate, dated the date of Closing addressed to the Agency and the Underwriter, to the following effect: (A) The Trustee is a national banking association duly organized and validly existing under the laws of the United States of Arnerica; and (B) The Trustee has full power, authority and legal right to comply with the terms of the Indenture and to perform its obligations stated therein. (viii) Escrow Bank's Certificate. A Certificate, dated the date of Closing addressed to the Agency and the Underwriter, from the Escrow Bank to the following effect: (A) The Escrow Bank is a national banking association duly organized and validly existing under the laws of the United States of America; and (B) The Escrow Bank has full power, authority and legal right to comply with the terms of the Escrow Agreement and to perform its obligations stated therein. (ix) Opinion of Counsel to Trustee and Escrow Agent. An opinion of Connsel to the Trustee and the Escrow Agent (the "Bank"), to the effect that: (A) the Bank has been duly organized and is validly existing and in good standing, with full corporate power to undertake the trust duties and obligations under the Indenture, the Escrow Agreement and the Continuing Disclosure Agreement. (B) the Bank has duly authorized, executed and delivered the Indenture and the Escrow Agreement, and by all proper corporate action has authorized the acceptance of the duties and obligations of the Bank under the Indenture and the Escrow Agreement and to authorize in such capacity the authentication and delivery of the Bonds. (C) assuming due authorization, execution and delivery of the Agency, the Indenture and the Escrow Agreement constitute the valid, legal and binding agreements of the Bank, enforceable in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights in general and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law.) (D) exclusive of federal or state securities laws and regulations, to the best of such counsel's knowledge after reasonable inquiry and investigation, other than routine filings required to be made with governmental agencies in order to preserve the Bank's authority to perform a trust business (all of which routing filings such counsel believes, after reasonable inquiry and investigation, to have been made), no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Bank is or will be required for the authentication by the Bank of the Indenture or the Escrow Agreement or the execution and delivery of the Bonds. (x) Verification Report. A verification report of Grant Thomton LLP with respect to the sufficiency of amounts deposited under the Escrow Agreement. (xi) Prior Bonds, Defeasance Opinion. An opinion of Bond Counsel, dated the date of the Closing, addressed to the Agency, the Underwriter, the Trustee and the Escrow Bank, as to the legal defeasance of the Prior Bonds. (xii) Certain Financing Documents. An executed copy of the Indenture, the Escrow Agreement and the Continuing Disclosure Certificate. (xiii) City Resolution. A certified copy of the City Resolution adopted by the City Council and certified by the City Clerk or Assistant City Clerk of the City Council approving issuance of the Bonds. (xiv) Agency Resolution. A certified copy of the Agency Resolution adopted by the Agency and certified by the Secretary or Assistant Secretary of the Agency authorizing the execution and delivery of the Indenture, this Bond Purchase Agreement, the Escrow Agreement and the Continuing Disclosure Certificate. (xv) Form 8038~G. Evidence that the federal tax information Form 8038-G has been prepared for filing. (xvi) Letter of Representations. A certified copy of the Letter of Representations by the Agency to DTC. (xvii) Official Statement. An executed copy of the Official Statement. TEMRDA BPAcLwlxl/LItJ388 14 (xviii) Preliminary Official Statement. An executed certificate, dated as of the date of the Preliminary Official Statement, of the Agency in a form acceptable to the Underwriter relating to Rule 15c2-12. (xix) Rating. Evidence that Standard & Poor's Ratings Services has issued a rating of .... on the Bonds. (xx) Tax Certificate. An Arbitrage Certificate relating to the Bonds in form satisfactory to Bond Counsel. (xxi) Bond Insurance Policy. A policy of municipal bond insurance relating to the Bonds issued by (the "Municipal Bond Insurer"). (xxii) Opinion of Counsel to the Municipal Bond Insurer. An opinion of counsel to the Municipal Bond Insurer, dated the date of the closing, addressed to the Agency and the Underwriter in a form reasonably acceptable to the Agency and the Underwriter. (xxiii) Additional Documents. Such additional certificates, instruments and other documents as the Underwriter, Bond Counsel or Disclosure Counsel may reasonably deem necessary to evidence the troth and accuracy as of the time of the Closing of the representations of the Agency and the due performance or satisfaction by the Agency at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the Agency. If the Agency shall be unable to satisfy the conditions contained in this Bond Purchase Agreement, or if the obligations of the Undenvriter shall be terminated for any reason permitted by this Bond Purchase Agreement, this Bond Purchase Agreement shall terminate and neither the Underwriter nor the Agency shall be under further obligation hereunder, except as further set forth in Section 10 hereof. 9. Certain Covenants. After the Closing: (a) The Agency will not adopt any amendment of or supplement to the Official Statement to which, after having been furnished a copy, the Underwriter shall reasonably object in writing and if any event relating to or affecting the Agency or the Project Area shall occur as a result of~hich it is necessary, in the opinion of 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 the Underwriter, the Agency shall cause to be forthwith prepared and furnished to the Underwriter (at the expense of the Agency) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) that will amend or supplement the Official Statement so that it will not contain an untrue statement ora material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the cimumstances existing at the time it is delivered to the purchaser, not misleading; TEMRDA BPAd.wpiY12d388 15 (b) The Agency shall not knowingly take or omit to take, as is appropriate, any action which would adversely affect the exclusion fi.om gross income under federal tax law of the interest on the Bonds or which would cause the Bonds to become arbitrage bonds under Section 148 of the Code and the regulations thereunder; and 10. Expenses. All expenses and costs of the Agency incident to the performance of their obligations hereunder and in connection with the authorization, execution, sale and delivery of the Bonds to the Underwriter, including any printing costs, fees of the Trustee, the Escrow Agent, the Dissemination Agent, rating agency fees, fees and expenses of consultants, fees and expenses of bond counsel, fees and expenses of Disclosure Counsel, fees and expenses of counsel to the Agency and the City, and Bond insurance policy premiums shall be paid fi.om the Bond proceeds or in the event that Bonds are not issued for any reason, shall be paid by the Agency. All costs and expenses of the Underwriter, including travel, Blue sky expenses, fees and expenses assessed upon the Underwriter with respect to the Bonds by the Municipal Securities Rulemaking Board or the National Association of Securities Dealers, CUSIP Service Bureau charges, CDIAC fees and advertising expenses shall be paid by the Underwriter. 11. Survival of Certain Representations and Obligations. The respective agreements, covenants, representations, warranties and other statements of the Agency of each of its officials, partners or officers set forth in or made pursuant to this Bond Purchase Agreement shall survive delivery of and payment for the Bonds remains outstanding under the Indenture, regardless of any investigation, or statements as to the results thereof, made by or on behalf of the Underwriter. 12. Notice. Any notice or other communication to be given to the Agency under this Bond Purchase Agreement may be given by delivering the same in writing to the Agency, addressed as follows: Redevelopment Agency of the City of Temecula, 43174 Business Park Drive, Temecula, California 92590, Attention: Ms. Genie Roberts, Director of Finance. 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, 15260 Ventura Boulevard, Suite 1520, Sherman Oaks, Califomia 91403, Attention: Public Finance. 13. Entire Agreement. This Bond Purchase Agreement, when accepted by the Agency, shall constitute the entire agreement between the Agency and the Underwriter and is made solely for the benefit of the Agency and the Underwriter (including the successors or assigns of the Underwriter). No other person or entity shall acquire or have any right hereunder by virtue hereof, except as expressly provided herein. 14. Counterparts. This Bond Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. TEMP, DA BPA~wlx]/IA~3BB 16 15. Severability. In case any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal or unenfomeable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereofi 16. California Law Governs. The validity, interpretation and performance of this Bond Purchase Agreement shall be govemed by the laws of the State applicable to contracts made and performed in the State. TEMRDA BPAd.wpel/LR/3 8 8 17 17. No Assignment. The rights and obligations created by this Bond Purchase Agreement shall not be subject to assignment by the Underwriter or Agency without the prior written consent of the other parties hereto. STONE & YOUNGBERG LLC Authorized Representative Accepted as of the date first stated above: REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY By Name: Title: TEMRDA BPAd.wpd/lll/388 18 EXHIBIT A MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES OR YIELDS $ Serial Bonds Maturity Principal Interest August 1 Amount Rate Yield TEMRDA BPAd.wpd/LR]388 A-1 EXHIBIT B Rule 15e2-12 Certificate .,2002 Stone & Youngberg LLC 19900 MacArthur Blvd., Suite 500 Lrvine, California 92512 Re: Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds Ladies and Gentlemen: You have been engaged by the Redevelopment Agency of the City of Temecula (the "Agency"), to act as the underwriter in connection with the sale of approximately $. of Redevelopment Agency of the City ofTemecula, Temecula Redevelopment Project No. 1,2002 Tax Allocation Bonds (the "Bonds"). We have, in conjunction with you and others, prepared a Preliminary Official Statement with respect to the Bonds dated April ,2002. For purposes of Rule 15c2-12 of the Securities and Exchange Commission ("Rule 15c2-12"), the undersigned hereby certifies on behalf of the Agency that the Preliminary Official Statement is deemed final, in accordance with Rule 15c2-12 as of its date except for the omission of certain matters which may be omitted under Rule 15c2-12 (including interest rates, redemption prices and dates, ratings, and related information). Very truly yours, REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By: Name: Title: TEMRDA BPAd.~88 B-1 FISCAL CONSULTANTS REPORT Appendix __ REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds PROJECTED TAXABLE VALUES AND ANTICIPATED TAX INCREMENT REVENUES March 5, 2002 I. Introduction The Redevelopment Agency of the City of Temecula (the Agency) is proposing to issue its 2002 Tax Allocation Bonds (the Bonds) to refund its 1993 Tax Allocation Bonds, Series A and to finance redevelopment activities related to the Agency's Temecula Redevelopment Project No. 1 (the Project Area). Tax revenues generated by the Project Area will be pledged to pay debt service on the Bonds. The California Community Redevelopment Law (the Law) provides for the creation of redevelopment agencies by cities and counties for the purpose of the elimination of blight. The Law, together with Article 16, Section 16 of the California Constitution, authorizes redevelopment agencies to receive that portion of property tax revenue generated by project area taxable values that are in excess of the Base Year value. The Base Year value is defined as the amount of the taxable values within the project area boundaries on the last equalized tax roll prior to adoption of the project area. The amount of current year taxable value that is in excess of the Base Year value is referred to as incremental taxable value. Tax revenues generated from the incremental taxable value are generally referred to as Tax Increment Revenues. The Law provides that the Tax Increment Revenues may be pledged by the redevelopment agency to the repayment of agency indebtedness. In this report, Tax Increment Revenues, including Unitary Tax Revenue (see Section IV, Allocation of State Assessed Unitary Taxes) are referred to as Gross Revenues. Gross Revenues less the Housing Set-Aside Requirement (see Section V, Low and Moderate Income Housing Set-Aside), the SB 2557 County Administrative fees (see Section IV, County Collection Charges), tax sharing payments, payments made pursuant to disposition and development agreement and/or owner participation agreements (see Section VII, ,Tax Sharing Agreements and Other Obligations) and other obligations with a lien on Gross Revenues that is on parity with or superior to debt service on the Bonds are referred to as Tax Revenues. Tax Revenues from the Project Area will be pledged to the payment of debt service on the Bonds. The purpose of this fiscal consultant report (the Report) is to examine the current fiscal year and project for nine fiscal years the amount of tax increment revenues anticipated to be received by the Agency from the Project Area. As a result of our research, we project that the Tax Revenues for the Project Area will be as shown in the table below: Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 Project Area Tax Revenues (000's omitted Fiscal Year Gross Housing ~B 2557 Tax Sharing Tax Revenue Revenue Set-Aside Admin. Payments Fees 2001-02 $10,088 ($2,017) ($161) ($5,522) $2,385 2002-03 10,245 ( 2,049) ( 164) ( 5,603) 2,429 2003-04 9,863 ( 1,973) ( 158) ( 5,410) 2,323 2004-05 10,071 ( 2,014) ( 161) ( 5,541) 2,355 2005-06 10,268 ( 2,054) ( 164) ( 5,666) 2,384 2006-07 10,468 ( 2,094) ( 167) ( 5,794) 2,413 2007-08 10,671 ( 2,134) ( 171) ( 5,924) 2,442 2008-09 10,904 ( 2,181) ( 174) ( 6,057) 2,492 2009-10 11,148 ( 2,230) ( 178) ( 6,193) 2,548 2010-11 11,397 ( 2,279) ( 182) ( 6,331) 2,604 The Tax Revenues for the Project Area summarized above are reflected on Tables 1 and 2 of the projections (attached). This projection is based on assumptions determined by our review of the taxable value history of the Project Area and the property tax assessment and property tax apportionment procedures of Riverside County (the County). The projection illustrates the entire amount of Tax Revenues projected as being available from the Project Area. Future year assessed values and Tax Revenues are projections based upon the assumptions described in this Report, and are not guaranteed as to accuracy. This Report is not to be construed as a representation of such by HdL Coren & Cone. II. The Project Area On July 12, 1988, Riverside County adopted the "County of Riverside Redevelopment Plan 1-1988" by Ordinance No. 658. On December 1, 1989 the City of Temecula was incorporated. All of the area within the County Redevelopment Plan was included within the boundaries of the City of Temecula. The City Council of the City of Temecula adopted Ordinance No. 91-14 on April 9 1991 activating the Agency and designating the City Council as the member of the Agency board. The City Council further adopted Ordinance No. 91-15 adopting the Redevelopment Plan and effectively transferring jurisdiction over the Project Area to the Redevelopment Agency of the City of Temecula. This transfer was effective July 1, 1991. The Project Area is primarily commercial and industrial in nature. It is generally located along Interstate 15 from the City's northern border with the City of Murrieta to the intersection of Highway 79 on the south. A. Land Use The following table represents the breakdown of land use in the Project Area by the number of parcels and by assessed value for fiscal year 2001-02. Unsecured and SBE non-unitary values are connected with parcels that are already accounted for in other categories. In the following table, the numbers in brackets reflects the number of property tax bills that are associated with these categories and not the number of 2 Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 parcels to which these bills are connected. It should be noted that the figures below are taken from the lien date tax rolls and include the value for exempt parcels such as those owned by the City, Agency, State or other governmental agencies. The category values and parcel counts are based on the use codes assigned to parcels on the lien date tax roll. Values shown in Table 3 for the Project Area projections reflect net taxable values as reported by the Auditor-Controller and do not, therefore, include values for such exempt parcels. The values reported by the Auditor-Controller do not include tax roll adjustments that have occurred after the lien date. Redevelopment Project No. 1 Cate~or~ No. Pamels Assessed Value % of Total Residential 98 $ 20,261,641 1.5% Commemial 298 526,074,349 38.8% Industrial 216 513,890,145 37.9% Recreationar 2 1,498,930 0.1% Institutional 6 14,976,077 1.1% Government 3 558,831 0.0% Exempt 75 6,546,464 0.5% Vacant Land 283 73,561,412 5.4% Possessory Interest [10] 2,570,942 0.2% Unsecured [1,657] 195,720,460 14.5% Unknown 2 55,278 0.0% Totals: 983 $1,355,814,529 100.00% Exemptions and Roll Adjustments $16,573,032 Net Taxable Value: $1,339,241,497 B. Redevelopment Plan Limits General Information Chapter 942, Statutes of 1993 (See Section VI B below), as codified in Section 33333.6 of the Law, limits the life of redevelopment plans adopted prior to January 1, 1994 to 40 years from the date of adoption or January 1, 2009, whichever is later. It also limits the period within which a redevelopment project area may receive tax increment to the life of the redevelopment plan plus ten years beyond the termination of redevelopment activities except to accommodate certain specific Iow and moderate-income housing obligations or to pay debt service on bonds, indebtedness or other financial obligations authorized prior to January 1, 1994. Such redevelopment plans are further required to include a limitation on the number of tax increment dollars that may be allocated to the redevelopment agency; a time limit on the establishing of indebtedness to be repaid with tax increment; and a limit on the amount of bonded indebtedness to be repaid with tax increment that can be outstanding at one time. These limits can be extended only by an amendment of the redevelopment plan. For redevelopment plans adopted prior to 1994, Chapter 942 stipulates that the time limit for establishing indebtedness shall not exceed 20 years from the adoption of the redevelopment plan or January 1, 2004, whichever is later. The Governor recently signed SB 211 into law (Chapter 741, Statutes of 2001). This legislation amends several sections of the Law that control time limitations for redevelopment project areas. Limitations, which under prior legislation could not be amended or had different amendment procedures, in accordance with this new legislation, may be modified through project area amendments as set forth in the newly codified legislation (see Section VI, Legislation). Redevelopment Agency of the City of Temecula DraR Fiscal Consultant's Report March 5, 2002 The City Council amended the Redevelopment Plan by the adoption of Ordinance 94- 33 on December 20, 1994. This ordinance amended the Redevelopment Plan and established limits that conform to the Law as amended by Chapter 942. Limit on Allocation of Tax Increment Revenues Within Ordinance 94-33 certain limitations contained within a judgment entered into the case entitled Robert Dawes, Save Historical Temecula v. Redevelopment Agency of the County of Riverside, et. al. Riverside County Superior Court Case No. 194468 MF were incorporated. The primary impact of this judgment on the projection is in the fact that the judgment stipulated a limit on the amount of tax increment revenue that can be divided and allocated to the Agency. Section 1 of the Ordinance states that in accordance with the amended Redevelopment Plan, taxes as defined in Section 33670 of the Law shall not be divided and shall not be allocated to the Agency in excess of $1.11 billion except by amendment of the Redevelopment Plan. The judgment in the Dawes case stipulates that no more than $30 million in tax increment revenue may be divided and allocated to the Agency for use within the "Old Town" area and no more than $30 million in tax increment revenue may be divided and allocated to the Agency for use in those portions of the Project Area that are outside the "Old Town" area. Tax increment revenue was defined in this judgment as not including those amounts that are required to be set aside in the Iow and moderate income housing fund, those amounts that are paid to other taxing entities under tax sharing agreements and amounts that were paid by the Agency to the County as reimbursement for costs incurred by the County for transfer of jurisdiction over the Project Area to the Agency. In addition, Tax increment revenue was defined to exclude $75,000 annually for administration of the Project Area. Also excluded from the limitation on tax increment revenue were "all costs of debt service (excluding repayment of principal) and financing costs incurred by the Agency" connected with tax increment financing and/or refinancing. The judgment' was modified on August 7, 1995. Under the modified agreement removes the limitation on expenditure of revenues within the "Old Town" and non-Old Town areas. The modified judgment further increases the amount of tax increment revenue that may be divided and allocate to the Agency from an aggregate amount of $60 million to $150 million. The definition of tax increment revenues as excluding those items discussed above was not changed. According to Agency records, it has received a total of $66,146,805 in tax increment revenue through 2000-01. The amount of revenue received by the Agency that is applicable to the limit as defined in the judgment is $14,663,928. Based on the projection, during the life of the Redevelopment Plan, the Agency will receive a total of $108,039,037 in revenue that is applicable to the limits in the judgment. In the event that significant additional growth occurs in the future, the Agency may approach this limit prior to the expiration of the Redevelopment Plan. 4 Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 Time Limit on Incurrin.cl Debt The Redevelopment Plan for the Project Area was adopted prior to January 1, 1994. Chapter 942 specifies that a time limit on establishment of new debt be incorporated into the Redevelopment Plan and that this limit shall be twenty years from the adoption of the Redevelopment Plan or January 1, 2004, which ever is later. Pursuant to the amended Redevelopment Plan, the Agency cannot establish new debt on or after July 12, 2008 that is twenty years after the adoptioq of the Redevelopment Plan. Limits on Bonded Indebtedness As amended by Ordinance 94-33, the Redevelopment Plan restricts the amount of bonded indebtedness that may be outstanding at any one time. The Agency may issue bonds and/or notes for any of its authorized purposes. These bonds and/or notes may be secured with a pledge of tax increment revenues. The total outstanding principal of any bonds so issued and repayable from tax increment revenues shall not exceed $340 million at any one time, except by amendment of the redevelopment plan. Duration of Plan Activities The amended Redevelopment Plan specifies that except for the non-discrimination and non-segregation provisions that continue in perpetuity, the effectiveness of the Redevelopment Plan shall expire on July 12, 2028 that is forty year from the adoption of the Plan. After expiration of the effectiveness of the Redevelopment Plan, the Agency shall have no authority to act pursuant to the Redevelopment Plan except to pay previously incurred indebtedness and to enforce existing covenants, contracts and other obligations. The Agency may not receive additional tax increment revenue or pay indebtedness after July 12, 2038 except for such purposes as specifically permitted under the Law. III. Project Area Assessed Values A. Assessed Values Taxable values are prepared and reported by the County ?uditor-Controller each fiscal year and represent the aggregation of all locally assessed properties that are part of each Project Area. The assessments are assigned to Tax Rate Areas (TRA) that are coterminous with the boundaries of the Project Area. The historic reported taxable values for the Project Area were reviewed in order to ascertain the rate of taxable property valuation growth over the most recent ten fiscal years beginning with 1992-93. This review revealed that the County had mistakenly included a new TRA in the Project Area in 1998-99. This new TRA included a total of 29 parcels with a combined value of $3,719,599. The parcels in this TRA were valued at $12,369,526 for 1999-00 and $16,162,784 for 2000-01. Our review further revealed that for 2001-02, the County included two new TRA's in the Agency's assessed values. The 2001-02 combined value of these three mistakenly included TRA's is $33,125,795 and they consist of 764 parcels. The Auditor-Controller assigned no base year value to these TRA's. The Agency will contact the Auditor-Controller and have these errors corrected. The values for these TRA's have been removed from Agency valuations for purposes of this projection. Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 Once the correction to the current tax roll has been made, it is possible that the Auditor- Controller may seek to reclaim the revenues from these TRA's that have been mistakenly allocated to the Agency. This would be complicated by the need to reclaim revenue amounts that have been paid to various taxing entities and the County in the form of tax sharing payments. At this time, we do not know if the County will attempt to recover the misallocated revenue nor do we know the exact amount that may be sought. The following table estimates the amount of Gross Revenue that would have been allocated to the Agency from these TRA's. TRA 94-106 94-106 94-106 94-106, 94-205, 94-212 1998-99 1999-00 2000-01 2001-02 Assessed ValL~e $3,719,599 $12,369,526 $16,162,784 $33,125,795 Tax Rate 1.048% 1.046% 1.044% 1.106% Gross Tax Revenue $38,970 $129,435 $168,788 $366,255 Based on the adjusted valuations, between 1992-93 and 2001-02, the taxable value within the Project Area increased by $374,401,331 (38.8%). Values declined from 1993-94 levels by 5.07 percent in 1994-95. Assessed values remained well below the levels of 1993-94 until the Project Area realized a 5.52 percent ($51,166,358) jump in value for 1999-00 followed by increases in value of $215,229,552 (22.01%) for 2000-01 and $146,082,156 (12.24%) for fiscal year 2001-02. The large jump in assessed value in 2000-01 was led by an increase of $61,580,153 in the value due to the construction of the Promenade Mall properties. This mall value was augmented by increases in value related to the development of the Robinson's- May, Sears and J.C. Penney department stores. The combined total of added assessed value for these three stores was $32,095,695. The assessed values for top property owners Advanced Cardiovascular Systems Inc. and International Rectifier Corporation increased for 2000-01 by $17,324,783 and $9,032,527 respectively. The increases in assessed value for 2001-02 were led by the addition of $22,606,321 in value for the new Costco store on Ynez Road near the Promenade Mall. Additional improvements by Advanced Cardiovascular Systems Inc. resulted in $27,450,330 of new assessed value for 2001-02. The completion of a new Lowes Hardware store added $4,297,557 to the assessed values for this fiscal year. B. Top Ten Taxable Property Owners A review of the top ten taxable property owners in the Project Area for fiscal year 2001- 02 was conducted. Within the Project Area, the aggregate total taxable value for the ten largest taxpayers totaled $533,283,653. This amount is 54.74% percent of the Project Area incremental value and 39.82 percent of the total Project Area value. The top property owner in the Project Area is the International Rectifier Corporation, which controls two secured parcels with a combined value of $140,136,436. The value of the International Rectifier parcels is 14.39 percent of the total incremental value in Project Area No. 1 and 10.46 percent of the total Project Area value. The second largest taxpayer in the Project Area is Advanced Cardiovascular Systems inc. with a combined value on four parcels of $132,236,087. Properties owned by Advanced Cardiovascular Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 Systems account for 13.57 percent of the incremental value in the P~oject Area for 2001-02 and accounts for 9.87 percent of the total value in the Project Area. The third largest taxpayer is Temecula Town Center Associates who control five parcels with a combined value of $74,151,428. This is 7.61 percent of the Project Area incremental value and 5.54 percent of the Project Area total value. See Table 3 attached to this report for a full listing of the Project Area's top ten taxpayers. IV. Tax Allocation and Disbursement A. Property Taxes The taxable values of property are established each year on the property tax lien date. Prior to 1997 the lien date was March 1 for locally assessed property and January 1 for State assessed utility property. Beginning with 1997, the lien date became January 1 for locally assessed property also. Real Property reflects the reported assessed values for secured and unsecured land and improvements. Pursuant to Article XIIIA of the State Constitution the value of locally assessed Real Property may only be increased up to two percent a0nually to reflect inflation. In most cases real Property values are permitted to increase to full market value as a result of a change of ownership or new construction. Utility property assessed by the State Board of Equalization may be revalued annually and such assessments are not subject to the inflation limitations of Article XIIIA. The taxable value of Personal Property is also established on the lien dates and is not subject to the annual two percent limit of locally assessed Real Property. Secured property includes property on which any property tax levied by a county becomes a lien on that property. Unsecured property typically includes value for tenant improvements, fixtures, inventory and personal property. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on certain other secured property owned by the taxpayer. The taxes levied on unsecured property are levied at the previous year's secured property tax rate. B. Supplemental Assessments Chapter 498 of the Statutes of 1983 provides for the reassessment of property upon a change of ownership or completion of new construction. Such reassessment is referred to as the Supplemental Assessment and is determined by applying the current year's tax rate to the amount of increase in a property's value and prorating the resulting property taxes to reflect the portion of the tax year remaining as determined by the date of the change in ownership or completion of new construction. Supplemental Assessments become a lien against Real Property. Since 1984-85 revenues derived from Supplemental Assessments have been allocated to redevelopment agencies and taxing entities in the same manner as regularly collected property taxes. The receipt of Supplemental Tax Revenues by taxing entities typically follows the change of ownership by a year or more. For fiscal year 1999-00 the Agency received $374,106 in supplemental revenue. For fiscal year 2000-01 the ? Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 Agency received $49,485 in supplemental revenue. We have no~t included revenues resulting from Supplemental Assessments in our projection. C. Tax Rates Tax rates will vary from area to area within the State, as well as within a community and a project area. The tax rate for any particular parcel is based upon the jurisdictions levying the tax rate for the area where the parcel is located. The tax rate consists of the general levy rate of $1.00 per $100 of taxable values and the over-ride tax rate. The over-ride rate is that portion of the tax rate that exceeds the general levy tax rate and is levied to pay voter approved indebtedness or contractual obligations that existed prior to the enactment of Proposition XlIIA. A Constitutional amendment approved in June 1983 allows the levy of over-ride tax rates to repay indebtedness for the acquisition and improvement of real property, upon approval by a two-thirds vote. A subsequent amendment of the Constitution prohibits the allocation to redevelopment agencies of tax revenues derived from over-ride tax rates levied for repayment of indebtedness approved by the voters after December 31, 1988. The over-ride tax rates typically decline each year as a result of (1) increasing property values (which would reduce the over-ride rate that must be levied to meet debt service) and (2) the eventual retirement of debt over time. The Project Areas contain a total of twenty-seven Tax Rate Areas. A Tax Rate Area is a geographic area within which the taxes on all property are levied by a certain set of taxing entities. These taxing entities each receive a prorated share of the general levy and those taxing entities with voter approved over-ride tax rates receive the revenue resulting from that tax rate. The tax increment projections are based on the published tax rates for 2001-02. There are five tax rates that exist within the various Project Areas tax rate areas. All tax rate areas are within the Temecula Valley Unified School District boundaries. The District levies a tax rate of 0.07495 percent for voter-approved debt that was approved after January 1, 1989. Section 33670(e) of the Law specifies that revenues resulting from tax rates authorized by voter approval after January 1, 1994 will not be allocated to a redevelopment agency, therefore, the Temecula Unified School District tax rate does not generate tax increment revenue to the Agency. The various over-ride tax rates levied by the Metropolitan Water District in its several Fringe areas are authorized by a contract and will not terminate until March 1, 2037. The Eastern Municipal Water District levies an over-ride tax rate of 0.019 percent in 27 of the Agency's 30 tax rate areas. This over-ride rate will be eliminated on March 1, 2009. The effective secured roll tax rate for all tax rate areas in the Project Area is 1.0318 percent. The effective unsecured roll tax rate for all tax rate areas in the Project Area is 1.04635 percent. The components of the five tax rates for the 2001-02 fiscal year and the percentage of assessed value against which these rates are levied are as follows: Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 Taxing Entities Tax Rate Tax Rate Tax Rate Tax Rate Tax Rate ] General Levy 1.00000 1.00000 1.0000 1.0000 1.0000 MWD East 13th Fringe 0.00770 MWD East 14th Fringe .01570 MWD East 15th Fringe .00770 MWD East 20th Fringe .07700 MWD East 24th Fringe .01170 EMWD imp. District U-8 .01900 .01900 .01900 .01900 Eligible Tax Rate 1.02670 1.03070 '1.09600 1.02670 1.0157 I RDA Temecula Valley USD .07495 .07495 .07495 .07495 .07495 Total Tax Rate: 1.10650 1.10565 1.17095 1.10165 1.09065 Incremental Value $501,921,378 $382,732,326 $60,214,464 $30,392,065 ($127,338) I Percentage of Total 51.47% 39.25% 6.18% 3.12% -0.01% D. Allocation of Taxes Secured taxes are due in two equal installments. Installments of taxes levied upon secured property become delinquent on December 10 and April 10. Taxes on unsecured property are due March I and become delinquent August 31. The County disburses tax increment revenue to redevelopment agencies in monthly payments made November through July, with approximately 40 percent of annual revenue paid by the end of December and 85 percent by the end of May. The County's practice is to distribute 100 percent of the taxes levied on the extended tax roll subject to any tax sharing agreement with the County. The tax revenues of the taxing entities are not subject to revenue loss due to delinquencies or gains due to redemptions. This is an administrative practice of the County that could be subject to change. For purposes of this Report we have assumed that this practice will continue and have estimated future taxes based the Agency receiving 100 percent of the amount levied. E. Annual Tax Receipts to Tax Levy As indicated in the section above, the County Auditor Controller allocates tax revenue to the Agency at 100 percent of the calculated revenue and does not allocate based on collections. The Agency receives 100 percent of the amount levied for any particular year. F. Assessment Appeals Assessment appeals data from Riverside County has been reviewed to determine the potential impact that pending appeals may have on the projected Tax Revenues. Within the Project Area since 1995, there have been a total of 377 appeals filed. Of these, 179 have been allowed with a reduction in value, 145 have been denied or withdrawn and there are 82 assessment appeals currently pending. Of the 82 pending appeaJs, 29 are appeals that can be ighored because they are duplicate appeals on the same properties for different years. In this situation, the potential loss of value in the event of an appeal being allowed may not be cumulative. The reduction in value will be taken in the year for which the successful appeal was filed and this reduced value will 9 Redevelopment Agency of the City of Temecula DraR Fiscal Consultant's Report March 5, 2002 be rolled forward into future years as adjusted for inflation, sales, new construction and other roll adjustments. There are 53 pending appeals that could result in a loss of value that will affect Agency revenues. Reductions in value on the successful appeals have totaled $86,539,734. The amount of assessed value currently under appeal is $401,729,085. Based upon the historical rate that appeals have been allowed with a reduction in value and upon the average reduction in value that has been allowed on those successful appeals, we have estimated the loss in value that may result from the currently pending appeals. By applying these historical averages to the pending appeals, we have estimated that the Agency may experience a loss in assessed value of $2,537,415 on 10 of the pending appeals during 2002-03 and a loss in assessed value of $72,675,299 on 19 of the pending appeals during 2003-04. Within the top ten taxpayers in the Project Area, eight have filed assessment appeals that are currently pending. Many of these appeals are seeking reduction of a property's initial valuation. Temecula Town Center Associates, Kimco Palm Plaza, Costco Wholesale Corporation and J C Penney have all appealed their valuations for 2000-01. Each of these owners and Lowes HIW Inc. have filed appeals of their assessed values for 2001-02. International Rectifier has pending appeals for the 1996-97, 1998-99, 2000-01 and 2001-02 fiscal years. Where a property owner has a pending assessment appeal on the initial valuation of a new development, a successful appeal will adjust the base value for the property and that base value will carry forward into future years. The Assessor typically rolls a reduction in value for a particular fiscal year forward into subsequent years with adjustments for inflation, improvements to the property and other factors. However, if the values are reduced, the taxpayer may receive property tax refunds for the cumulative reductions. We have not included any adjustments in the projection for taxpayer refunds. G. County Collection Charges Chapter 466 allows counties to recover charges for property tax administration in an amount equal to their 1989-90 property tax administration costs, as adjusted annually. Within this report, these charges are referred to as the SB 2557 Administrative Fees. For fiscal year 2000-01, the amount of the County collection charge attributed to the Project Area was $135,117. The proposed Amended and Restated Agreement between the Agency, the City and the County, estimates these charges at $130,000. For purposes of these projections, we have assumed that the County will charge the Agency $130,000 for fiscal year 2001-02 under the terms of this agreement. We further assume that the County will continue to charge the Agency for property tax administration and that such charge will increase proportionally with any increases in revenue. For purposes of this projection, the County's administrative charge is estimated at 1.247 percent of the Project Area's annual Gross Revenue. H. Allocation of State Assessed Unitary Taxes Legislation enacted in 1986 (Chapter 1457) and 1987 (Chapter 921) provided for a modification of the distribution of tax revenues derived from utility property assessed by the State Board of Equalization, other than railroads. Prior to the 1988-89 fiscal year, 10 Redevelopment Agency of the City of Temecula DraR Fiscal Consultant's Report March 5, 2002 property assessed by the SBE was assessed statewide and was allocated according to the location of individual components of a utility in a tax rate area. Commencing in 1988-89, tax revenues derived from unitary property and assessed by the SBE are accumulated in a single Tax Rate Area for the County. It is then distributed to each taxing entity in the County in the following manner: (1) each taxing entity will receive the same amount as in the previous year plus an increase for inflation of up to two percent; (2) if utility tax revenues are insufficient to provide the same amount as in the previous year, each taxing entity's share would be reduced pro-rata county wide; and (3) any increase in revenue above two percent would be allocated in the same proportion as the taxing entity's local secured taxable values are to the local secured taxable values of the County. To administer the allocation of unitary tax revenues to redevelopment agencies, the County no longer includes the taxable value of utilities as part of the reported taxable values of the project area, therefore, the base year of project areas have been reduced by the amount of utility value that existed originally in the base year. The Auditor Controller allocated a total of $6,488 of unitary tax revenue to the Project Area for 2000- 01. For purposes of this projection, we have assumed that this amount of unitary revenue will continue to be allocated to the Project Area in the same amount for the life of the projection. V. Low and Moderate Income Housing Set-Aside Sections 33334.2 and 33334.3 of the Law require redevelopment agencies to set aside not less than 20 percent of all tax increment revenues from project areas adopted after December 31, 1976 into a Iow and moderate income housing fund (the Housing Set- Aside Requirement). An agency can reduce the Housing Set-Aside Requirement if the agency annually makes certain findings, consistent with the General Plan Housing Element. These findings are that: (1) no need exists in the community to improve or increase the supply of Iow and moderate income housing; or, (2) some stated percentage less than 20 percent of the tax increment is sufficient to meet the housing need. In order to make findings (1) or (2), the Agency's finding must be consistent with the Housing Element of the community's General Plan, including its share of the regional housing needs of very Iow income households and persons and families of Iow or moderate income. The Agency has not made such findings in the past. We have assumed for purposes of this report that the Agency will continue to annually satisfy the Housing Set-Aside Requirement. VI. Legislation In order to address State Budget deficits, the Legislature enacted SB 614, SB 844 and SB 1135 that required payments from redevelopment agencies for the 1992-93, 1993- 94 and 1994-95 fiscal years into a countywide Education Revenue Augmentation Fund (the ERAF). The Agency could have used any funds legally available and not legally obligated for other uses, including reserve funds, bond proceeds, earned income, and proceeds of land sales, but not moneys in the Low and Moderate Income Housing Fund (the Housing Fund) to satisfy this obligation. An agency could have reduced its I! Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 payment due to existing indebtedness, contractual obligations and 90 percent of 1991- 93 administrative costs (collectively, Existing Obligations). If an agency could not make the required payment due to Existing Obligations, it could have borrowed up to 50 percent of its 1992-93 contribution to the Housing Fund (which must be repaid within ten years), or the agency was required to obtain a loan from the city/county in order to pay the difference between what the agency pays and the total amount due. For agencies that did not borrow to meet any shortfall of the required payment, the county auditor-controller was required to deduct any amount due from the city/county's allocation of property taxes. The obligation applied to the agency and not to specific project areas. According to the Agency, it has no outstanding ERAF obligations. In addition to the payments from redevelopment agencies periodic State budget solutions have involved the shifting of property tax revenues from cities, counties and special districts to the ERAF. While State budgets since 1994-95 have been adopted with no additional shifting of tax increment from redevelopment agencies, it is possible that the Legislature could shift property tax allocations or require redevelopment payments in some future year. In Riverside County, this shift has been accomplished allocating the ERAF portion first and by distributing the remaining revenues to taxing entities in the same manner as they were distributed prior the ERAF requirement except for redevelopment agencies whose revenue is distributed in accordance with its incremental taxable value. SB 211 was recently signed into law as Chapter 741, Statutes of 2001. This legislation has two main impacts on the limits contained in an agency's redevelopment plan. First, the City may eliminate the time limit to establish indebtedness in project areas adopted prior to January 1, 1994 by ordinance. If the Plan is so amended, existing tax sharing agreements will continue and certain statutory tax sharing for entities without tax sharing agreements will commence in the year the eliminated limit would have taken effect. Second, an agency may extend the time limit for plan effectiveness and repayment of debt for up to ten years if it can make certain specified fin~lings. These changes could potentially impact time limits in the Project Area Redevelopment Plan by eliminating or extending these limits. Project areas that have been adopted after January 1, 1994 may only extend the limitation on incurring new debt by making specific findings. VII. Tax Sharing Agreements and Other Obligations A. Tax Sharing Agreements As discussed earlier, the County of Riverside originally adopted the Project Area. At the time of adoption, the County entered into a number of tax sharing agreements. All of these agreements with school districts called for the districts to receive 29.62 percent of their shares of general levy tax increment revenue. All non-school district taxing entity agreements called for the taxing entity to receive 100 percent of its general levy tax increment revenue. These tax sharing agreements became obligations of the Agency at the time that the Project Area was adopted by the Agency. These 12 Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 agreements have a lien on tax increment revenues that is superior to the lien for debt service on the Bonds. At the time that the Agency adopted the Project Area Redevelopment Plan, it entered into an agreement with the County of Riverside on May 21, 1991. This agreement called for tax sharing payments to be made to the County General Fund, the County Structural Fire Department and the County Library Department. It also provided for a partial deferral of the payments to the County General Fund. Both the County and the Agency executed an Amended and Restated Agreement, dated January 22, 2002. The new agreement calls for the Agency to make tax-sharing payments to the County General Fund, Structural Fire Department and Library Department from general levy tax increment revenues net of the SB 2557 Administrative Fee. The General Fund share is 18.12 percent, the County Structural Fire Department share is 4.70 percent and the' County Library Department share is 2.18 percent. In addition to the tax sharing payments, the agreement specifies that the Agency shall pay the County a total of $6 million from the proceeds of the Bonds as repayment of the County tax sharing payments deferred under the May 21, 1991 agreement. The Agency further agrees to contribute $5 million toward the acquisition of right of way for a project referred to as the Date/Cherry Interchange. Under both the May 21, 1991 agreement and the proposed agreement, the Auditor Controller is responsible for calculating the amount of the tax sharing payments and allocating these payments to the various taxing entities. Neither agreement provides for subordination of the tax sharing payments to the County, Structural Fire Department or Library Department to debt service on the Bonds. The agreements are summarized in the table below: Taxin,q Entity 1% Share Pass Throu,qh Share County of Riverside 18.12% 100% County Library Department 2.18% 100% County Structural Fire Department 4.70% 100% Temecula Public Cemetery District 0.40% 100% Eastern Municipal Water District 10.05% 100% Riverside County Flood Control District 1.76% 100% Rancho California Water District 5.92% 100% Temecula Valley Unified School District 31.51% 29.62% Mt. San Jacinto Community College District 3.60% 29.62% Rivers[de County Supt. Of Schools 10.53% 29.62% B. Reimbursement Agreements The Agency has entered into two Owner Participation Agreements that call for payments to be made to the Owner Participants. The first agreement is between the Agency and the International Rectifier Corporation (IR) was entered into on December 9, 1997 and amended on December 15, 1998. This agreement calls for the Agency to pay to iR an amount equivalent to 50 percent of the tax increment revenue generated by the construction of the IR facility. This facility was completed as of September 1997 and payments were to have begun in fiscal year 1998-99. Payments are to be made 13 Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 for a period of ten years and will be net of tax sharing payments and the Housing Set- Aside Requirement. [More information and payment history to be provided] The second agreement is between the Agency and M & H Realty Partners IV L.P. This agreement was originally entered into by the Agency with Costco Wholesale Corporation on July 23, 1991 and amended on November 9, 1999. The agreement was further amended on March 21, 2000. Under the terms of this agreement, the Agency will provide assistance by paying an amount equivalent to the amount of sales taxes generated by the facility that exceed certain annual targets. The total amount of Agency assistance is limited to an aggregate total of $2.5 million and payments shall be made over a twelve-year period. The final payment to the owner will be due for the twelfth year after the issuance of the certificate of occupancy. Payments under the terms of this agreement have been made by the Agency since 1993-94. Payments made to date and those anticipated over the final three years of this agreement are listed below. According to Agency Counsel, payments made under this agreement are subordinate to debt service on the Bonds. Fiscal Year Payment Amount 1993-94 $117,812.00 1994-95 $154,985.84 1995-96 $167,877.60 1996-97 $158,843.10 1997-98 $192,697.75 1998-99 $235,570.00 1999-00 $280,685.87 2000-01 $300,000.00 2001-02 $300,000.00 2002-03 $300,000.00 2003-04 $291,527.84 Total: $2,500,000.00 C. Court Decisions The State Court of Appeals recently upheld a Superior Court decision which held the Santa Ana School District had the right to receive payments from the Orange County Redevelopment Agency pursuant to a resolution adopted by the School District in 1999 under former Section 33676(a) of the Law (Santa Ana Unified School District v. Orange County Redevelopment Agency; App. 4 Dist. 2001 108 Cal. Rptr.2d 770, 90 Cal. App 4th 404, review denied). Former Section 33676(a)(2) provided that, unless a negotiated tax sharing agreement had been entered into, upon passage of a resolution prior to adoption of a redevelopment plan, affected taxing agencies and every school and community college district could elect to be allocated increases in the assessed value of taxable property in the project area based on inflation growth (the 2% Property Tax Increase). Former Section 33676(a)(2) was repealed as part of major revisions made to the Law pursuant to the Reform Act of 1993 (AB 1290). The changes to the Law contained in AB1290 were effective as of January 1, 1994. The Court of Appeals affirmed the lower court ruling that due to an amendment to former Section 33676(a) that was adopted in 1984 and became effective on January 1, 1985, school and community college districts 14 Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 were to automatically receive the 2% Property Tax Increase even without adopting the appropriate resolution prior to the adoption of a redevelopment plan. It is believed that this decision will have no affect on the Agency in that all school districts within the Project Area have entered into negotiated tax sharing agreements with the Agency. In a Minute Order issued on November 2, 2001 in County of Orange v. Orange County Assessment Appeals Board No. 3, case no. 00CC03385, the Orange County Superior Court held that where a home's taxable value did not increase for two years, due to a flat real estate market, the Orange County assessor violated the two percent inflation adjustment provision of Article XIIIA, when the assessor tried to "recapture" the tax value of the property by increasing its assessed value by 4% in a single year. The assessors in most California counties, including Riverside County, use a similar methodology in raising the taxable values of property beyond 2% in a single year. The State Board of Equalization has approved this methodology for increasing assessed values. The Orange County Superior Court has not ruled on a motion to restate the complaint as a class action, which could have the effect of extending this ruling to other similar cases. The Agency is unable to predict the outcome of this litigation and what effect, if any, it might have on assessed values in Riverside County or the availability of revenue sources, which may be provided by the State to replace lost property tax revenues. If the holding of the Orange County Superior Court should be determined to govern the Assessor, such limitation may have a material adverse impact on Tax Revenues and, therefore, the Agency's ability to make payments on the Bonds for the Project Area. VIII. New Development Activities A great deal of new development has occurred and continues to occur within the Project Area. The Agency has identified fifteen projects that are currently under construction or have been recently completed and are not yet reflected on the tax rolls. It is estimated that these projects will produce $17,931,749 in new assessed value over the next three fiscal years with the majority of this new value coming onto the tax rolls for 2003-04. These new developments include a hotel, automobile dealerships, and restaurants, industrial and commercial uses. These new developments and the timing of their completion are outlined on Table 5 of the projection. In addition to the development listed above, Guidant (Advanced Cardiovascular Systems) is considering an expansion of its current facility. This expansion may involve the purchase of an additional 27 acres and construction of approximately 480,000 square feet of manufacturing, office and warehousing space. This new project is proposed to occur over several years and total $117 million in new assessed value. 15 Redevelopment Agency of the City of Temecula Draft Fiscal Consultant's Report March 5, 2002 IX. Trended Taxable Value Growth Growth in real property land and improvement values have been limited to an assumed rate of growth of real property taxable values of two percent annually as allowed under Article XIIIA of the state Constitution. A two percent growth rate has been assumed because it is the maximum inflationary growth rate permitted by law and this rate of growth has been realized in all but four years since 1981. The years in which less than two percent growth was realized were 1983-84 (1.0%), 1995-96 (1.19%), 1996-97 (1.11%) and 1999-00 (1.85%). Should the growth of taxable value in the project areas be less than two percent, the resultant Gross Tax Increment Revenues would be reduced proportionately. HdL Coren & Cone make no representation that taxable values will actually grow at two percent. Future values will also be impacted by changes of ownership and new construction not reflected in our projections. In addition, the values of property previously reduced in value due to assessment appeals based on reduced market values could increase more than two percent when real estate values increase more than two percent. Seismic activity and environmental conditions such as hazardous substances that are not anticipated in this report might also impact property taxes and Tax Increment Revenue. HdL Coren & Cone makes no representation that taxable values will actually grow at the rate projected. Anticipated revenues could be adjusted as a result of unidentified assessment appeal refunds, other Assessor corrections discussed previously, or unanticipated increases or decreases in property tax values. Estimated valuations from developments included in this analysis are based upon our understanding of the general practices of the Riverside County Assessor and Auditor-Controller's Office. General assessment practices are subject to policy changes, legislative changes, and the individual appraiser's judgment. While we believe our estimates to be reasonable, taxable values resulting from actual appraisals may vary from the amounts assumed in the projections. 16 ~o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o ol o oo OOEEE CONSULTANT AGREEMENTS Quint & Thimmi§LLP Attorneys at Law AGREEMENT FOR LEGAL SERVICES (Tax Allocation Bonds) THIS AGREEMENT FOR LEGAL SERVICES is made and entered into this 26t~ day of March, 2002, by and between the Redevelopment Agency of the City of Temecula (the "Agency"), and Quint & Thimmig LLP, San Francisco, California ("Attorneys"). RECITALS: WHEREAS, the Agency anticipates the issuance of bon~ts of the Agency pursuant to the California Redevelopment Law (the "Bonds") to (i) refinance the Agency's Temecula Redevelopment Project No. 1 1993 Tax Allocation Bonds, (ii) finance an obligation of the Agency to the County of Riverside, and (iii) finance various redevelopment projects of the Agency, and WHEREAS, the Agency has determined that Attorneys are specially trained and experienced to provide services for accomplishing such issuance and Attorneys are willing to provide such services; and WHEREAS, the public interest, economy and general welfare will be served by this Agreement for Legal Services. AGREEMENT: NOW, THEREFORE, IT IS HEREBY AGREED, as follows: Section 1. Duties of Attorneys. Attorneys shall provide legal services in connection with the authorization, issuance and consummation of the financing proceedings relating to the Bonds. Such services shall include the following: a. Confer and consult with the officers and administrative staff of the Agency as to matters relating to the financing proceedings; b. Attend all meetings of the Agency Governing Board and any administrative meetings at which any proceedings are to be discussed, deemed necessary by Attorneys for the proper planning of the financing proceedings or when specifically requested by Agency staff to attend; c. Prepare any required resolutions, resolutions, notices and legal documents necessary for the proper conduct of the financing proceedings relating to the Bonds; d. Review all financial documents for legal sufficiency; e. Review, without undertaking an independent investigation, any official statement or other disclosure document prepared in connection with the financing proceedings to assure correctness of disclosure relating to the legal documents prepared by Attorneys; f. Prepare and provide a signature and no-litigation certificate, an arbitrage certificate and any and all other closing documents required to accompany issuance of the Bonds; g. Prepare and provide a complete transcript of the conduct of the proceedings necessary to accompany issuance of the Bonds; h. Subject to the completion of proceedings to the satisfact/on of Attorneys, provide the legal opinion of Attorneys that the interest on the Bonds is excludable from gross income for purposes of federal income taxation and that such interest is exempt from California personal income taxation; i. Subject to the completion of proceedings to the satisfaction of Attorneys, provide the legal opinion of Attorneys approving in ali regards the legality of all proceedings relating to the Bonds; and j. Confer and consult with Agency officials and agents with regard to problems which may arise during the servicing and payment of the Bonds. Section 2. Compensation. For the services set forth under Section 1, Attorneys shall be paid the percentage compensation set forth below. a. One percent (1%) of the principal amount of the Bonds to a principal amount of $1,000,000; plus b. One-half percent (1/2%) of the principal amount of the Bonds in excess of $1,000,000, but less than or equal to $6,000,000; plus c. One-quarter percent (1/4%) of the principal amount of the Bonds in excess of $6,000,000, but less than or equal to $21,000,000; plus d. One-eighth percent (1/8% of the ~rincipal amount of the Bonds in excess of $21,000,000). in addition, Attorneys shall be reimbursed for any costs advanced by Attorneys on behalf of the Agency, including delivery and messenger services, closing costs, duplication costs, transcript binding costs and expenses for travel outside the State of California, if any, but specifically excluding travel expenses within the State of California. -2- Payment of said fees and expenses shall be entirely contingent, shall be due and payable upon the delivery of the Bonds and shall be payable solely from the proceeds of the Bonds and from no other funds of flu? Agencqj. Section 3. Exceptions. Any services rendered in any litigation involving the Agency or the financing proceedings relating to the Bonds are excepted from the services to be rendered for the above compensation. On-going advice and preparation of necessary documentation regarding compliance with Section 148 of the Internal Revenue Code of 1986, relating to arbitrage limStations and rebate provisions, and any continuing disclosure requirements under federal or State securities laws, are also excepted from the services to be rendered for the above compensation. For such services which Attorneys are directed to render for and on behalf of the Agency, compensation shall be on the basis of reasonable fees to be agreed upon by the Agency and Attorneys. Section 4. Termination of Agreement. This Agreement for Legal Services may be terminated at any time by the Agency, with or without cause, upon written notice to Attorneys. In the event of such termination, all finished and unfinished documents shaH, at the option of the Agency, become its property and shall be delivered by Attorneys. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed by their respective officers thereunto duly authorized as of the day and year first above written. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By: hawn D. Nelson, Executive Director QUINT & THIMMIG LLP By: Paul J. Thirnmig, Partner -3- TEMECULA REDEVELOPMENT AGENCY AGREEMENT FOR DISCLOSURE COUNSEL SERVICES THIS AGREEMENT is made and entered into this day of February, 2002, by and between the TEMECULA REDEVELOPMENT AGENCY (hereinafter called the "Agency") and MCFARLIN & ANDERSON, attorneys at law, Lake Forest, California (hereinafter called "Disclosure Counsel"). RECITALS WHEREAS, the Agency proposes to finance the acquisition and construction of public infrastructure improvements financeable under the provisions of the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the California Health and Safety Code (the "Law") and to refund outstanding indebtedness of the Agency; and WHEREAS, the financing will likely be accomplished in one or more series through the issuance by the Agency of tax allocation bonds (the "Bonds") pursuant to the Law; and WHEREAS, the Agency desires to employ Disclosure Counsel to provide legal services incident to the foregoing financing or financings or to such other financing alternatives as the Agency may determine shall be most appropriate for the financing of the public infrastructure improvements; and WHEREAS, Disclosure Counsel is prepared and able to provide legal services required and necessary incident to the financing; and WHEREAS, the Agency and Disclosure Counsel have determined that it is appropriate to enter into this agreement in order to set forth the terms and provisions for rendering of services by Disclosure Counsel. COVENANTS NOW, THEREFORE, it is mutually agreed by the parties hereto as follows: Section 1. AGREEMENT FOR SERVICES. The Agency employs Disclosure Counsel to render and Disclosure Counsel agrees to render legal services in connection with the issuance of the Bonds as follows: (a) Consult with representatives of the Agency, bond counsel, the financial advisor, the underwriter and others concerning the timing, terms and structure of the financing, including consideration of Stale law, federal tax law, federal securities law and general public finance law; TEMRDAPROPa. WPD/LR/388 (b) Attend meetings of Agency staff, as needed, and working group meetings of the financing participants to accomplish the foregoing; (c) Prepare the preliminary official statement, the official statement, the Agency's Continuing Disclosure Agreement and incorporate as an exhibit to the preliminary official statement and the official statement the summary of the Bond Indenture or Fiscal Agent Agreement prepared by Bond Counsel; (d) Review legal proceedings prepared by Bond Counsel required for the execution and delivery of the Bonds, including resolutions, the Bond Indenture or Fiscal Agent Agreement, and other necessary notices, certificates, contracts, bond forms and other papers and documents required in connection with the execution and delivery of the Bonds; (e) Review other proceedings and documents (including closing papers) prepared by Bond Counsel incidental to or in connection with the execution and delivery of the Bonds, and coordinate the closing of the financing with Bond Counsel; and (f) Issue its standard 10b-5 legal opinion as Disclosure Counsel with respect to the Official Statement. Section 2. LEGAL FEES AND COSTS. The Agency agrees to pay Disclosure Counsel for its services as set forth in Section 1 at its standard hourly rates as set forth in Exhibit A, subject to a maximum fee for services of $35,000; provided that in the event Disclosure Counsel shall perform extraordinary services as Disclosure Counsel, the financing shall be delayed for an extraordinary period of time or the financing shall entail extraordinary efforts of Disclosure Counsel, the Agency shall consider the nature of services performed and shall, in its sole and absolute discretion after consultation with Disclosure Counsel, determine the value of said services in excess of the foregoing amount. Disclosure CounseI shall be paid from the proceeds of the funding instrument, upon execution and delivery thereof, to a bona fide purchaser. Disclosure Counsel shall be paid for its customary disbursements, including telephone costs, word processing charges, telecopy charges, copying charges, publication fees, filing fees, travel charges, attorney service charges, and mail, messenger and express delivery charges. Disclosure Counsel estimates that such fees and costs will not exceed $2,000 and Disclosure Counsel shall advise the Agency in the event disbursements exceed $2,000. Section 3. TERMINATI ON. This Agreement may be terminated at any time by the Agency upon written notice to Disclosure Counsel. In the event of termination, the Agency shall pay for any fees and costs incurred by Disclosure Counsel prior to the effective date of such termination, provided that any costs and expenses shall not exceed the amounts set forth in Section 2 above and that such costs and expenses shall be paid from the proceeds of the funding instrument, upon execution and delivery thereof, to a bona fide purchaser. 2 TEM RDAPROPa. WPD/LR/388 Section 4. OTHER LEGAL FEES. The fees specified in Section 2 do not include services in connection with the acquisition, by contract or condemnation, of any easement or other property necessary for the proposed facilities to be acquired or constructed by the Agency or in connection with financings undertaken by the Agency other than the issuance of the Bonds. Services under the fee arrangement set forth in Section 2 also do not include representation of the Agency in any legal action challenging, affecting or arising out of the transaction contemplated by this agreement, but if such services become necessary, Disclosure Counsel shall perform them on such terms as shall be mutually agreeable to the Agency and Disclosure Counsel at the time. Section 5. INFORMATION PROVIDED BY THE AGENCY. The Agency agrees to furnish Disclosure Counsel such resolutions, ordinances, tax agreements and other documents and proceedings, or certified copies thereof, as may be required by Disclosure Counsel in the performance of its services hereunder. Section 6. OTHER REPRESENTATION. Disclosure CounseI has in the past worked with, and is currently working with, other issuers and various underwriters in connection with the issuance of tax-exempt and taxable securities. However, Disclosure Counsel is not aware of any circumstance in which Disclosure Counsel has rendered substantive advice during the past in which the interests of another of Disclosure Counsel's clients may be or have been adverse to that of the Agency. Disclosure Counsel has represented several underwriters in various financings. These have included UBS PaineWebber Inc., Stone & Youngberg LLC, M.L. Stem & Co., Inc., A.G. Edwards & Sons, Inc., O'Connor SWS Securities, Merrill Lynch & Co., Kemper Securities, Inc., Dain Rauscher Incorporated, Prager, McCarthy & Sealy and Charles A. Bell Securities Corp. --' -- ..... Adverse interests may arise between the Agency and the Underwriter in connection with the issuance of the Bonds. Consequently, Disclosure Counsel's representation of the Agency and any past or concurrent representation of the Underwriter present certain conflict of interest issues. Where the appearance of a conflict exists, or where an actual conflict exists, it is appropriate for the Agency and the Underwriter to consent to the proposed representation in the particular situation. In determining whether to grant such consent, it should be understood and agreed that Disclosure Counsel will not put one party or its interests ahead of the other party or its interests. It should also be understood that, except to the extent litigation arises between the Agency and the Underwriter in connection with this transaction, Disclosure Counsel's representation as described above will not be a basis for either party to object to Disclosure Counsel's representation of the Agency in the present transaction or of either party in future transactions if Disclosure Counsel is requested to do so. The Agency has referred this matter to the appropriate person for review, including review by general counsel to the Agency, and execution by the Agency of this Agreement evidences the informed consent of the Agency to Disclosure Counsel's representation on the basis described in this Agreement. Disclosure Counsel will attempt to keep the Agency apprised of actual adverse situations which arise. 3 TEM RDAPROPa.'C/PD/LR/388 Section 7. SERVICES LIMITED TO ROLE AS DISCLOSURE COUNSEL. The scope of Disclosure Counsel's services shall be limited to services as disclosure counsel in connection with the financing as described above. Disclosure Counsel does not specialize in other areas of representation of public agencies, and Disclosure Counsel has not undertaken to represent the Agency with regard to other matters. Section 8. INSURANCE. Disclosure Counsel is presently insured by Lawyers' Mutual insurance Company for professional liability coverage and will provide the Agency with such additional information regarding its policy coverage as the Agency shall request. Section 9. ENTIRE AGREEMENT. This Agreement is the entire agreement between the parties relating to the matters covered herein. Section 10. AMENDMENT. Any amendment to this Agreement shall be effective only if such amendment is in writing and signed by both parties hereto. 4 TEMRDAPROPa. WPD/LR]3 8 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in the County of Orange, State of California, on the date and year first above written. TEMECULA REDEVELOPMENT AGENCY l~y: COUNTERSIGNED: By: MCFARLIN & ANDERSON -= . - . -- - :-, ---~. ~ES~F. A~ERSON 5 TE M RDAPROPa. WPD/LR/388 EXHIBIT A MCFARLIN & ANDERSON CURRENT HOURLY RATE SCHEDULE (January 1, 2000) J_ob Function Hourly Rate Senior Partner $270.00 Partner 225.00 Associate 175.00 Paralegal · 90.00 Clerk 35.00 Disbursements As Billed A- l TEMRDAPROPa. WPD/LR/3 8 $ PROFESSIONAL SERVICES AGREEMENT FOR FINANCIAL ADVISOR This agreement has been entered into this IST day of FIiB , 2002 by and between the Redevelopment Agency of the City of Temecula, California (the "Agency") and Fieldman, Rolapp & Associates, (herein, the "Consultant"). WHEREAS, the Agency desires independent financial advisory services to be performed in connection with the issuance of the 2002 Tax Allocation Bonds (heroin, the "Project"); and WHEREAS, the Agency desires to retain the professional and technical services of the Consultant for the purpose of debt issuance, (herein, the "Services"). WHEREAS, the Consultant is well qualified to provide professional financial advice to public entities such as the Agency; NOW, THEREFORE, in consideration of the above recitals and the mutual covenants and conditions hereinafter set forth, it is agreed as follows: Section 1 Financial Advisory Services. As directed by the Agency, Consultant will provide services in connection with the the issuance of the 2002 Tax Allocation Bonds as such Services are fully described in Exhibit A attached to this Agreement. Consultant is engaged in an expert financial advisory capacity to the Agency only. It is expressly understood that the Services rendered hereunder are rendered solely to the Redevelopment Agency of the City of Temecula. Consultant does not undertake any responsibility to review disclosure documents on behalf of owners or beneficial owners of bonds or debt which may arise from the Consultant's work hereunder. Section 2 Additional Services. Services performed for the Agency by Consultant, that are not otherwise specifically identified in Exhibit A to this Agreement, shall be additional services. Additional services include, but are not limited to, the following: 2.01 Assisting the Agency in obtaining enabling legislation or conducting referendum elections. 2.02 Extraordinary services and extensive computer analysis in the structuring or planning of any debt issue or financing prograxn. 2.03 The repeat of any element of a service described in Exhibit A to this Agreement which is made necessary through no fault of Consultant. 2.04 Financial management services, including development of financial policies, capital improvement plans, economic development planning, credit analysis or review and such other services that are not ordinarily considered within the scope of services described in Exhibit A to this Agreement. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA/FIELDMAN, ROLAPP & ASSOCIATES Page 1 2.05 Services rendered in coImection with any undertaking of the Agency relating to a continuing disclosure agreement entered into in order to comply with Securities and Exchange Commission Rule 15c2-12 or other similar rules. 2.06 Services rendered to the Agency in connection with calculations or determination of any arbitrage rebate liability to the United States of America arising from investment activities associated with debt issued to fund the Project. Section 3 Compensation 3.01 For Consultant's performance of Services as described in Section I of this Agreement the Consultant's compensation will be as provided in Part 1 of Exhibit B attached to this Agreement, plus Consultant's expenses incurred in rendering such Services. Consultant's expenses may include, but are not limited to travel, telephone/conference calls, postage, courier, database access services, and printing. 3.02 For Consultant's performance of additional services as described in Section 2 of this Agreement, the Consultant's compensation will be as provided in Part 2 of Exhibit B attached to this agreement, plus Consultant's expenses incurred in rendering such services. Consultant's expenses may include, but are not limited to travel, telephone/conference calls, postage, courier, database access services and printing. 3.03 Payment for Consultant's Services rendered pursuant to Section I of this Agreement shall be as provided for in Exhibit B to this Agreement, unless specified to the contrary elsewhere in this Agreement. The Consultant may submit monthly invoices for payment for services provided pursuant to Section 2 of this Agreement unless an alternate date or dates have been specifically agreed to in writing. Unless otherwise specified, payment of Consultant's compensation and expenses is due thirty (30) days after submission of Consultant's invoice for services. 3.04 Consultant fees set forth in this Agreement and Exhibits are guaranteed by Consultant for a period of twelve (12) months from the date of this Agreement. Section 4 Personnel. Consultant has, or will secure, all personnel required to perform the services under this Agreement. Consultant shall make available other qualified personnel of the firm as may be required to complete Consultant's services. The Agency has the right to approve or disapprove any proposed changes in Consultant's staff providing service to the Agency. The Agency and Consultant agree that such personnel are employees only of Consultant and shall not be considered to be employees of the Agency in any way whatsoever. Section 5 Term of Agreement. This Agreement shall continue in full force and. effect for a period of twenty-four (24) months from the date hereof unless terminated by either party by not less than thirty (30) days written notice to the other party, except that the Agreement REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA/FIELDMAN, ROLAPP & ASSOCIATES Page 2 shall continue in full force and effect until completion of Consultant's services or until an abandonment shall have occurred, evidenced by written notification to all members of the Agency's finance team as described in Section 3.04 hereof. This Agreement may be extended from time to time as agreed by the Agency and the Consultant. Section 6 Modification. This Agreement contains the entire agreement of the parties. It may be amended in whole or in part from time to time by mutual consent of the parties. This shall not prohibit the Agency and Consultant from entehng into separate agreements for other services. Section 7 Assignment. The rights and obligations of the Agency under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the Agency. This agreement may not be assigned by the Consultant without the consent of the Agency except for compensation due Consultant. Section 8 Disclosure. Consultant does not assan~e the responsibilities of the Agency, nor the responsibilities of the other professionals and vendors representing the Agency, in the provision of services and the preparation of the financing documents, including initial and secondary market disclosure, for financings undertaken by the Agency. Information obtained by Consultant and included in any disclosure documents is, by mason of experience, believed to be accurate; however, such information is not guaranteed by Consultant, Section 9 Confidentiality. The Consultant agrees that all financial, statistical, personal, technical and other data and information designated by the Agency as confidential shall be protected by the Consultant from unauthorized use or disclosure. Section 10 Indemnification. The Agency and Consultant shall each indemnify and hold harmless the other from and against any and all losses, claims, damages, expenses, including legal fees for defense, or liabilities, collectively, damages, to which either may be subjected by reason of the other's acts, errors or omissions, except however, neither will indemnify the other from or against damages by reason of changed events and conditions beyond the control of either or errors of judgment reasonably made. Section 11 Insurance. 11.01 Consultant shall maintain workers' compensation and employers liability insurance during the term of this Agreement. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULAfFIELDMAN, ROLAPP & ASSOCIATES Page 3 11.02 Consultant, at its own expense, shall obtain and maintain insurance at all times during the prosecution of this contract. Such insurance must be written with a Best Guide "A"-rated or higher insurance carrier admitted to write insurance in the state where the work is located. 11.03 Certificates of insurance naming the Agency as an additional insured shall be submitted to the Agency evidencing the required coverages, limits and locations of operations to which the .insurance applies, and the policies of insurance shall contain a 30 day notice of cancellation or non-renewal. 11.04 Insurance coverages shall not be less than the following: A. Workers' Compensation 1. State worker's compensation statutory benefits 2. Employer's Liability - policy limits of not less than $1,000,000. B. Comprehensive General Liability coverage with policy limits of not less than $1,000,000 combined single limit for bodily injury and property damage and including coverage for the following: 1. Pmmises - operations 2. Contractual liability 3. Products 4. Completed operation 5. Personal injury C. Errors and omissions with policy limits of $1,000,000. Section 12 Permits/Licenses. The Consultant shall obtain any permits or licenses, as may be required for it to complete the services required under tiffs Agreement. Section 13 Binding Effect. 13.01 A waiver or indulgence by the Agency of a breach of any prowslon of this Agreement by the Consultant shall not operate or be construed as a waiver of any subsequent broach by the Consultant. 13.02 All agreements and covenants contained herein are severable and in the event any of them shall be held to be invalid by any competent court, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein, and the remaining provisions of this Agreement shall not be affected by such determination and shall remain in full force and effect. This Agreement shall not fail because any part or any clause hereof shall be held indefinite or invalid. 13.03 Each party hereto represents and warrants that this Agreement has been duly authorized and executed by it and constitutes its valid and binding agreement, REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA/F1ELDMAN, ROLAPP & ASSOCIATES Page 4 and that any governmental approvals necessary for the performance of this Agreement have been obtained. 13.04 The validity, interpretation and construction of this Agreement and of each part hereof shall be governed by the laws of the State of Califoraia. Venue for any lawsuit concerning this agreement is Orange County, California. IN WITNESS Whereof, the parties have duly executed this Agreement as of the day and year first above set forth. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By: ~ . Title: Fie~l~an, Rolapp & Associates 2100 Main Street, Suite 210 Irvine, CA 92614 Susan W. Jones, CHC, City Clerk Approved As To Form By City Attorney, Peter M. Thorson (see above) REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA/F][ELDMAN, ROLAPP & ASSOCIATES Page 5 EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT FOR FINANCIAL ADVISOR BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND FIELDMAN, ROLAPP & ASSOCIATES Scope of Services A. General Services. The Consultant shah perform all the duties and services specifically set forth herein and shall provide such other services as it deems necessary or advisable, or are reasonable and necessary to accomplish the intent of this Agreement in a manner consistem with the standards and practice of professional financial advisors prevailing at thc time such services are rendered to the Agency. Thc Agency may, with the concurrence of Consultant, expand this Agreement to include any additional services not specifically identified within the terms oft}ds Agreement. Any additional servicos may be described in an addendum to this Exhibit A and are subject to fees described in Exhibit B to this Agreement. B. Debt Issuance Services. The Consultant shall assume primary responsibility for assisting the Agency in coordinating the planning and execution of each debt issue relating to the Project. Insofar as the Consultant is providing Services which are rendered only to the Agency, the overall coordination of the financing shall be such as to minimize the costs of the transaction coincident with maximizing the Agency's financing flexibility and capital market access. The Consultant's proposed debt issuance Services may include, but shall not be limited to, the following: · Establish the Financing Objectives · Develop the Financing Schedule · Monitor the Transaction Process · Procure and Coordinate Additional Service Providers · Provide Financial Advice to the Agency Relating to Financing Documents · Compute Sizing and Design structure of the Debt Issue · Plan and Schedule Rating Agency Presentation and. Investor Briefings · Conduct Credit Enhancement Procuremem and Evaluation · Conduct Market Analysis and Evaluate Timing of Market Entry · Recommend Award of Debt Issuangg · Provide Pre-Closing and Closing Assistance REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA/FIELDMAN, ROLAPP & ASSOCIATES F. xhihit A laaoe 1 Specifically, Consultant will: 1. Establish the Financine Obiectives. At the onset of the financing transaction process for the Project, the Consultant shall . review the Agency's financing needs and in conjunction with the Agency's management, outline the objectives of the financing transaction ~o be undertaken and its proposed form. Unless previously determined, Consultant shall recommend the method of sale of debt and outline the steps required to achieve efficient market access. 2. Develop the Financing Timetable. The Consultant shall take the lead role in preparing a schedule and detailed description of the interconnected responsibilities of each team member and update this schedule, with refinements, as necessary, as the work progresses. 3. Monitor the Transaction Process. The Consultant shall have primary responsibility for the successful implementation of the financing strategy and timetable that is adopted for each debt issue relating to the Project. The Consultant shall coordinate (and assist, where appropriate) in the preparation of the legal and disclosure documents and shall monitor the progress of all activities leading to the sale of debt. The Consultant shall prepare the timetables and work schedules necessary to achieve this end in a timely, efficient and cost-effective manner and will coordinate and monitor the activities of all parties engaged in the financ'mg transaction. 4. Procure and Coordinate Additional Service Providers. Should the Agency desire, the Consultant may act as Agency's representative in procuring the services of financial printers for the official statement and related documents, and for the printing of any securities. In addition, the Consultant may act as the Agency's representative in procuring the services of trustees, paying agents, fiscal agents, feasibility consultants, redevelopment consultants, or escrow verification agents or other professionals, if the Agency directs. 5. Provide Financial Advice to the A~ency Relating to Financing Documents. ~ Simultaneous with assisting in the preparation of official statements for each debt issue relating to the Project, the Consultant shall assist the managing underwriters, bond counsel and/or other legal advisors in the drafting o£the respective financing resolutions, notices and oflaer legal documents. In this regard, the Consultant shall monitor document preparation for a consistent and accurate presentation of the recommended business terms and financing structure of each debt issue relating to the Project, it be'mg specifically understood however that the Consultant's services shall in no manner be construed as the Consultant engaging in the practice of law. 6. Compute Sizing and Design Structure of Debt Issue. The Consultant shall work with the Agency's staffto design a financing structure for each debt issue relating to the Project that is consistent with the Agency's objectives, that REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA/Iq~LDMAN, ROLAPP & ASSOCIATES Exhibit A_ Pa~e 2 coordinates each transaction with outstanding issues and that reflects current conditions in the capital markets. 7. Plan and Schedule Rating Agency Presentation and Investor Briefings, The Consultant shall develop a plan for presenting the financing program to the r~6ng agencies and the investor community. The Consultant shall schedule rating agency visits, if appropriate, to assure the appropriate and most knowledgeable rating agency personnel are available for the presentation and will develop presentation materials and assist the Agency officials in preparing for the presentations. 8. Conduct Credit Enhancement Evaluation and Procurement. Upon the Agency's direction, the Consultant will ini6ate discussions with bond insurers, letter of credit providers and vendors of other forms of credit enhancements to determine the availability of and cost benefit of securing financing credit support. 9. Conduct Market Analysis and Evaluate Timing of Market Entry. The Consultant shall provide regular summaries of current municipal market conditions, trends in thc market and how these may favorably or unfavorably affect the Agency's proposed financing. In thc case of a negotiated sale of debt, the Consultant shall perform a thorough evaluation of market conditions preceding thc negotiation of the terms of the sale of debt and will assist the Agency with the negotiation of final issue structure, _interest-rates, interest cost,-rcoffcring terms and gross underwriting spread and provide a recommendation, on aeccptance or rejection of the offer to purchase the debt. This assistance and evaluation will focus on thc following areas as determinants of interest cost: · Size of financing · Sources and uses of funds · Terms and maturities of the debt issue · Review of the rating in pricing of the debt issue · Distribution mix among institutional and retail purchasers · Interest rate, reoffering terms and underwriting discount with comparable issues · Redemption provisions 10. Recommend Award of Debt Issuance. Based upon activities outlined in Task 9 above, the Consultant will recommend to accept or reject offers to purchase thc debt issue. If the Agency elects to award the debt issue, the Consultant will instruct 'ail parties and help facilitate the actions required to formally consummate thc award. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA~I, m:LDMAN, ROLAPP & ASSOCIATES Exhibit A. Pa~e 3 11. Provide Pre-Closing and Closing Activities. Thc Consultant shall assist in anm~ing for the closing of each financing. The Consultant shall assist counsel in assuming responsibility for such arra~¢mcnts as they arc required, including arranging for or monitoring the progress of bond printing, qualification of issues for book-entry status, signing and final dclive~T of the securities and settlement of thc costs of issuance. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA/i~II~LDMAN, ROLAPP & ASSOCIATES Exhibit A. Pa~e 4 EXHIBIT B TO FINANCIAL ADVISORY SERVICES AGREEMENT BY AND BETWEEN REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND FIELDMAN, ROLAPP & ASSOCIATES Fees and Expenses Part 1: Fee for Services Financial Advisory Services performed pursuant to Sec~on 1 of this Agreement, and as more fully described in thc Scope of Services set forth in Exhibit A, will be billed for at the amounts set fo~& below: Transaction Size Fee~ $0 to $20,000,000 $34,500 $20,000,001 to $30,000,000 $36,500 $30,000,001 and above $38,500 Payment of fees earned by Consultant pursuant to this Part 1, shall be contingent on, and payable at the closing of the debt issue(s) undertaken to finance the Project. Fees for services shall not exceed $38,500. Part 2: Other Services Unless agreed to otherwise, financial advisory services performed pursuant to Section 2 of this Agreement will be billed at the then current hourly rates. The table below reflects the rates in effect as of the date of execution of this Agreement. Personnel Hourly Rate Managing Principal $275.00 Principals ....................................................................... $225.00 Vice Presidents ............................................................... $175.00 Assistant Vice Presidents ................................................ $160.00 Associates of thc Firm .................................................... $130.00 Administrative Assistants ................................................. $75.00 Clerical (Other) ................................................................ $35.00 Expenses Expenses will be billed for separately and will cover, among other things, travel, lodging, subsistence, overnight courier, conference calls, computer, and fax transmission charges. Advances made on behalf of the Agency for costs of preparing, printing or distributing disclosure materials or related matter whether by postal services or electronic means, may also be billed lhmugh to the Agency upon prior authorization. Additionally, a surcharge of 6% of the net fee amount is added to verifiable out-of-pocket costs for recovery of costs such as telephone, postage, document reproduction and the like. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA/FIELDMAN, ROLAPP & ASSOCIATES Exhibit B, Fage 1 Limiting Terms and Conditions The above fee is based on completion of work orders within six months of the Agency's authorization to proceed, and assumes that the Agency will provide all necessary information in a timely manner. The fee shown above in Part 1 presumes attendance at up to 6 meetings in the Agency's offices or such other location within a 25-mile radius of the Agency place of business as the Agency may designate. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA/t,I~LDMAN, ROLAPP & ASSOCIATES Exhibit B, Page 2 RDA DEPARTMENTAL REPORT APPROVAL CITY ATTORNEY FINANCE DIRECTOR CITY MANAGER ('~) ;/ TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Executive DirectodRedevelopment Agency Members FROM: John Meyer, Redevelopment Director DATE: March 26, 2002 SUBJECT: Monthly Departmental Report Attached for your information is the monthly report as of March 26, 2002 for the Redevelopment Department. First Time Homebuyers Pro,qram Funding in the amount of $200,000 is available for FY 01-02. Residential Improvement Programs The program budget for FY 01/02 is $250,000 and $133,386 has been funded for 35 units. Affordable Housin.q The Agency has entered into a Disposition and Development Agreement (DDA) with Affirmed Housing to develop a 17 affordable single family housing projects. Senior Housin.q Agency staff is negotiating with a development partner to rehab units for an affordable senior housing project. Old Town Community Theater The Redevelopment Agency Board approved the Community Theater's Master Plan at its meeting of April 24, 2001. The Architect has begun the next Phase of the design, which includes design development and construction drawings. The Mercantile Buildin.cI Retrofit Staff anticipates bringing a contract for Council consideration within 30 days. staff estimates about a 90-120 day construction period. 1 R:\SYERSKffvlONTHLLY~repo rt, MARC H020.doc Facade ImprovementJNon-Conformin.q Si~n Pro,ram The following facade improvement/sign projects are in process or have recently been completed: · Gallery Glass Sign Program · Mercato Italiano Sign Program · Country Porch Fire Suppression System ·La Table De Provence Sign Program · Old Town Day Spa Sign Program Exterior Paint Old Town Promotions/Marketing The Bluegrass Festival was held in Old Town on March 23 and 24 which featured 9 bands performing consecutively on 3 stages, kids programs, arts & crafts exhibits, workshops and food vendors. The Agency is also sponsoring several other events over the next few months. The events include Western Days scheduled for April 13 and 14 featuring live entertainment, gold panning, Rodeo Queens, including Ms. Rodeo California, Fields of Thunder Museum, Gunfighters, Civil War encampments and food vendors; the Dixieland Jazz Festival featuring several bands performing consecutively on 3 stages, arts and crafts and food vendors. The Street Painting Festival featuring several artists displaying chalk art on the street will be held in conjunction with the Groat Race returning to Temecula on June 22 & 23. The City of Temecula, along with The Temecula Chamber of Commerce, will host a luncheon with the arrival of vintage cars driving through Old Town. Summer Nights will kick off on July 5 featuring live performances, arts and crafts and food vendors to conclude on September 28. 2 R:\SYERS K'W1ONTHLLY~report. MARCH020.doc TEMECULA PUBLIC FINANCING AUTHORITY ITEM 1 APPROVAL CITY ATTORNEY DIR.OF FINANCE CITY MANAGER CITY OF TEMECULA and TEMECULA PUBLIC FINANCING AUTHORITY AGENDA REPORT TO: City Council/Public Financing Authority Governing Board FROM: City Manager/Executive Director DATE: March 26, 2002 SUBJECT: Formation of Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) RECOMMENDATION: 1. That the City Council hold a continued public hearing regarding the bond financing by the proposed Temecula Public Financing Authority Community Facilities District No. 01- 2 (Harveston) of various roadway improvements, and adopt the resolutions entitled: RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA MAKING FINDINGS WITH RESPECT TO AND APPROVING THE ISSUANCE OF BONDS BY THE TEMECULA FINANCING AUTHORITY RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING JOINT COMMUNITY FACILITIES AGREEMENT RELATING TO THE FINANCING OF PUBLIC IMPROVEMENTS 2. That the Public Financing Authority hold continued public hearings regarding the formation of the proposed Community Facilities District No. 01-2 (Harveston) (the "CFD"), the levy of special taxes in the CFD, and the issuance of bonds by the Public Financing Authority for the CFD, and adopt the resolutions entitled: RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF FORMATION OF TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 0t-2 (HARVESTON), 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 RESOLUTION NO. TPFA 02- 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. 01-2 (HARVESTON) AND SUBMITTING PROPOSITION TO THE QUALIFIED ELECTORS OF THE DISTRICT RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY CALLING SPECIAL ELECTION WITHIN COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) 3. That the Public Financing Authority hold an election regarding the CFD, and adopt the resolution entitled: RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY DECLARING RESULTS OF SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN 4. That the Public Financing Authority have the first reading of the ordinance entitled: ORDINANCE NO. TPFA 02- AN ORDINANCE OF THE TEMECULA PUBLIC FINANCING AUTHORITY LEVYING SPECIAL TAXES WITHIN TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) -2- BACKGROUND: Lennar Homes of California, Inc. ("Lennar") and Winchester Hills I LLC, a California limited liability company (collectively, the "Landowners") have requested that the Authority form a community facilities district (the "CFD") to assist in the defeasance of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hil~s) Special Tax Bonds, 1998 Series A (the "Prior Bonds"), as well as the funding of various public roadway improvements and the provision of lake and park maintenance services in the Winchester Hills area of the City of Temecula. The CFD will only include land owned by the petitioning Landowners. On December 11, 2001, the Authority adopted two resolutions related to the formation of the CFD (the "Resol,utions of Intention"), expressing the intent of the Board of Directors of the Authority to establish the CFD and for the CFD to incur bonded indebtedness to finance public roadway improvements necessitated by development to occur in the CFD, and to defease the Prior Bonds. The Resolutions of Intention called for public hearings regarding the CFD to occur on January 22, 2002. These hearings have been continued several times, most recently to March 26th. Representatives of Lennar and City Staff have had numerous discussions since December 11, 2001 regarding the proper scope of the facilities to be financed by the CFD and the propriety of including park and lake maintenance services within the authorized purposes of the CFD. These discussions finally have been concluded, and the City Staff and Lennar have reached agreement on the facilities to be financed by the CFD and services to be provided by the CFD. The City has published a notice of public hearing for March 5, 2002, with respect to yet another, different public hearing that the City Council must hold under applicable State law for the Authority to be able to issue bonds for the CFD. The hearing is to allow the public to provide testimony on the public purposes of the Authority's planned issuance of bonds for the CFD to finance roadway improvements and to refund prior bonds. That hearing was opened on March 5th and continued to March 26~h. In addition to the public hearing that must be held by the City Council prior to the issuance of bonds for the CFD, State law also requires that the City enter into a joint community facilities agreement with the Authority recognizing that some of the improvements to be financed by the CFD will be owned by, and some of the services to be paid for by the CFD will be provided by the City. A joint community facilities agreement has been drafted by Bond Counsel, and Staff recommends that the agreement be approved by the City Council and immediately be executed by the City and the Authority so that the format[on of the CFD can proceed. As stated above the public hearings by the Authority called pursuant to the resolutions of intention have been continued to March 26~. The Board of Directors of the Authority will now hold the continued Authority public hearings concurrently. At the hearings, the testimony of alt interested persons or taxpayers for or against the establishment of the CFD, the extent of the CFD, the bonds to be refinanced and the facilities and services to be financed by the CFD and the issuance of bonds for the CFD must be heard. Any person interested is authorized to file a protest in writing. As the land proposed to be included in the CFD is all owned by Lennar and Winchester Hills I LLC, a California limited liability company controlled by Stephen Bieri, and there are no known registered voters residing in the proposed CFD, only Lennar and Winchester Hills I LLC have legal standing to formally protest the formation or any particular aspects of the CFD. -3- A report has been filed by the Director of Public Works of the City with the Authority Secretary, as required by the resolutions of intention, indicating the proposed boundaries of the CFD, the facilities and services to be financed by the CFD and the estimated costs thereof. Following the closing of the public hearings, the Landowners have requested that the Authority take the actions necessary to officially form the CFD, to authorize the levy of special taxes in the CFD and to authorize the incurrence of bonded indebtedness by the CFD. Staff recommends that the Authority adopt resolutions of formation and of necessity to incur bonded indebtedness, and calling a special election of the landowners in the CFD. Ballots for the election have already been delivered to the Landowners, and are expected to have been returned to the City Clerk, acting as Secretary of the Authority, prior to March 26th. By law, the landowners are given one vote for each acre of land or portion thereof that they own within the boundaries of the CFD. As stated above, the only eligible voters are Lennar and Winchester Hills I LLC, as the owners of all of the land within the boundaries of the CFD, as such boundaries are indicated on the boundary map for the CFD on file with the Authority Secretary. The City Clerk, as Secretary to the Authority, will be requested to canvass the election immediately after adoption of the resolution calling the election. If two thirds or more of the votes cast are in favor of the CFD, the Authority is then requested to adopt a resolution declaring the results of the election and providing for the recording of a notice of special tax lien with the County Recorder. The notice provides all future property owners with knowledge of the existence of the Authority's special taxing powers. The Authority is then requested to have the first reading of an ordinance levying special taxes. The ordinance permits special taxes to be levied only on property located in the CFD. It is expected that special taxes will be levied to pay debt service on bonds proposed to be issued for the CFD, and to pay for the services authorized to be provided by the CFD. Staff expects that a resolution authorizing the issuance of the bonds and approving the related legal documents will be presented to the Authority on or about April 23rd. SPECIFIC ACTIONS: That the City Council hold the public hearing on the issuance of bonds by the Authority for the CFD, and adopt the resolutions approving the bond issue and the joint community facilities agreement. That the City and the Authority execute the joint community facilities agreement. That the Authority hold the public hearings on the CFD and adopt resolutions of formation of the CFD, of necessity to incur indebtedness of the CFD and calling a special election on the CFD. That the special election be held and canvassed. That the Authority adopt resolution canvassing the election and have the first reading of an ordinance levying the special taxes in the CFD. FISCAL IMPACT: The CFD will be authorized to levy special taxes to repay its indebtedness, to contribute to the costs of providing certain lake and park maintenance services, and to pay the annual costs of administration of the CFD. The City will in no way be liable for the repayment of any bonds issued by the Authority for the CFD or any other costs of administrating the CFD. The CFD will only be authorized to levy the special taxes on land included within the boundaries of the CFD. Attachments: Resolutions (6) Ordinance Community Facilities District Report Joint Community Facilities Agreement Notice of Special Tax Lien RESOLUTIONS RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA MAKING FINDINGS WITH RESPECT TO AND APPROVING THE ISSUANCE OF BONDS BY THE TEMECULA FINANCING AUTHORITY WHEREAS, the City of Temecula (the "City") and the Redevelopment Agency of the City of Temecula have heretofore entered into a Joint Exercise of Powers Agreement establishing the Temecula Public Financing Authority (the "Authority") for the purpose, among others, of issuing its bonds to finance public capital improvements; and WHEREAS, the Board of Directors of the Authority intends to form the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "CFD"), and to issue bonds of the Authority for the CFD (the "Bonds") to finance various public roadway improvements within the City of Temecula (the "Improvements"); and WHEREAS, the City Council has on this date held a duly noticed public hearing on the financing of the Improvements with the proceeds of the Bonds, as required by Section 6586.5(a) of the California Government Code; and WHEREAS, the City Council now desires to make a finding of significant public benefit, pursuant to Section 6586.5(a)(2) of the California Government Code, and to approve of the financing of the Ir~provements with the proceeds of the Bonds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as foltows: Section I. Findin,qs and Determinations. The City Council hereby finds that significant public benefits will arise from the financing of the Improvements with the proceeds of the Bonds, in accordance with Section 6586 of the California Government Code. Section 2. Approval of Financin,q. The City Council hereby approves the financing of the Improvements with the proceeds of the Bonds, and the issuance of the Bonds by the Authority. Section 3. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED APPROVED AND ADOPTED, by the Board of Directors of the Temecula Public Financing Authority at a meeting held on the 26h day of March, 2002. Ron Roberts, Mayor ATTEST: Susan W. Jones, CMC City Clerk 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 26th day of March, 2002, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk 2 RESOLUTION NO. 02- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING JOINT COMMUNITY FACILITIES AGREEMENT RELATING TO THE FINANCING OF PUBLIC IMPROVEMENTS WHEREAS, the Board of Directors of the Temecula Public Financing Authority (the "Authority") is undertaking proceedings to form the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "CFD") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), and the Authority intends to issue bonds of the Authority for the CFD (the "Bonds") in order to finance a portion of the costs of public improvements (the "Improvements") to be constructed within the City of Temecula (the "City") and the funding of certain services (the "Services") described in the proceedings to form the CFD; and WHEREAS, in order to enable the CFD to finance the Improvements and the Services, Section 53316.2 of the California Government Code requires that the City and the Authority enter into a joint community facilities agreement prior to the formation of the CFD with respect to the portion of the Improvements to be owned or operated, and with respect to the Services to be provided, by the City for the CFD; and WHEREAS, a form of joint community facilities agreement, by and between the City and the Authority relating to the Improvements to be owned or operated by the City, and with respect to the Services to be provided by the City for the CFD (the "Joint Community Facilities Agreement") has been filed with the City Clerk; and WHEREAS, the City Council, with the assistance of City staff, has reviewed the City Joint Community Facilities Agreement, and the City Council now desires to approve the Joint Community Facilities Agreement and direct its execution and delivery; and WHEREAS, the Authority expects to enter into an Acquisition Agreement (the "Acquisition Agreement") with the owner of most of the land in the CFD or an affiliate or designee thereof (the "Developer"), whereby the Developer will construct all or a portion of the Improvements to be acquired with the proceeds of the Bonds; and WHEREAS, the implementation of the Acquisition Agreement will involve actions by the Director of Public Works of the City and certain other City officials, and the City Council now desires to authorize City officials to assist in the implementation of the Acquisition Agreement the current form of which has been reviewed by and is on file with the Director of Public Works. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as follows: Section 1. Approval of Joint Community Facilities A,qreement. The City Council hereby approves the Joint Community Facilities Agreement in the form on file with the City Clerk, and hereby authorizes and directs the City Manager to execute and deliver the Joint Community Facilities Agreement in such form together with any changes therein deemed advisable by the City Manager upon consultation with the City Attorney, the approval.of such changes to be conclusively evidenced by the execution and delivery by the City Manager of the Joint Community Facilities Agreement. The City Council hereby declares that the Joint Community Facilities Agreement will be beneficial to the residents residing within the boundaries of the City. Section 2. Approval of Assistance Under Acquisition Agreement. The City Council hereby authorizes the Director of Public Works and all other appropriate officials of the City to assist the Authority in the implementation of the Acquisition Agreement, and to perform those functions described in the Acquisition Agreement as to be performed by officials of the City. Section 3. Official Actions. The Mayor, City Manager, Director of Finance, the Director of Public Works and City Clerk, and all other officers of the City, are hereby authorized and directed to take all actions and do all things necessary or desirable hereunder to implement the Joint Community Facilities Agreement and the Acquisition Agreement, including but not limited to the execution and delivery of any and all agreements, certificates, documents and other instruments which they, or any of them, deem necessary or desirable and not inconsistent with the purposes of this Resolution, the Joint Community Facilities Agreement and the Acquisition Agreement. Section 3. 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 26h day of March, 2002. Ron Roberts, Mayor ATTEST: Susan W. Jones, CMC City Clerk 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 26th day of March, 2002, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk -2- RESOLUTION NO. TPFA 02-._ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF FORMATION OF TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 0'1-2 (HARVESTON), 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 WHEREAS, on December 11, 2001, this Board of Directors adopted a resolution entitled '% Resolution of the Board of Directors of the Temecula Public Financing Authority Declaring Its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes Therein" (the "Resolution of Intention") stating its intention to form the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, California Government Code Section 53311 et seq. (the "Law"); and WHEREAS, the Resolution of Intention, incorporating by reference a map of the proposed boundaries of the District and describing the public improvements eligible to be financed by the District (the "Facilities"), the maintenance services eligible to be funded by the District (the "Services"), and the bonds (the "Prior Bonds") secured by a special tax lien on parcels in the District which Prior Bonds are to be defeased by the District, the cost of financing a podion of the costs of the Facilities and of defeasing the Prior Bonds and of providing the annual Services, and the rate and method of apportionment of the special tax to be levied within the District to pay the cost of financing a portion of the costs of the Facilities and of defeasing the Prior Bonds and of providing the annual Services, and to pay the principal and interest on bonds proposed to be issued with respect to the District, is on file with the Secretary and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and WHEREAS, the Resolution of Intention called for a public hearing on the District to be held on January 22, 2002 and on such date this Board of Directors opened the public hearing and continued the public hearing to February 12, 2002; and WHEREAS, on February 12, 2002, this Board of Directors adopted a resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Making Findings of Complexity of Proposed Community Facilities District No. 01-2 (Harveston),' pursuant to which resolution this Board of Directors found that the complexity of the District and the need for public participation required additional time, and thereby further continued the public hearing to February 26, 2002; and WHEREAS, on February 26, 2002, this Board of Directors again continued the public hearing to March 5, 2002, and on March 5, 2002 this Board of Directors again continued the public hearing to March 26, 2002; and WHEREAS, since the date of adoption of the Resolution of Intention, (i) the list of the Facilities eligible to be funded by the District has been revised to eliminate certain improvements previously listed in the Resolution of Intention, and (ii) the proposed Rate and Method of Apportionment of Special Taxes for the District (the "Rate and Method") has been revised to clarify certain matters set forth therein, and the landowners in the District have been provided with the revised description of the Facilities and the revised Rate and Method; and WHEREAS, on this date, this Board of Directors held the continued public hearing as required by the Law and the Resolution of Intention relative to the proposed formation of the District; and WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District, the Facilities and Services eligible to be funded by the District, and the Prior Bonds to be defeased, thereby and the levy of the special tax were heard and a full and fair hearing was held; and WHEREAS, at the hearing evidence was presented to this Board of Directors on the matters before it, including a report by the Director of Public Works of the City of Temecula (the "Report") as to the Facilities and Services eligible to be funded, and the Prior Bonds to be defeased, by the District and the costs thereof, a copy of which is on file with the Secretary, and this Board of Directors at the conclusion of the hearing was fully advised regarding the District; and WHEREAS, written protests with respect to the formation of the. District and/or the furnishing of specified types of Facilities or Services or of the Prior Bonds to be defeased as described in the Report have not been filed with the Secretary by fifty percent (50%) or more of the registered voters residing within the territory of the District or property owners of one-half (1/2) or more of the area of land within the District and not exempt from the special tax; and WHEREAS, the special tax proposed to be levied in the District to pay for a portion of the costs of the Facilities and to pay for the costs of the annual Services and of the defeasance of the Prior Bonds, as set forth in Exhibit B to this Resolution, has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District or the owners of one-half (1/2) or more of the area of land within the District and not exempt from the special tax. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Public Financing Authority as follows: Section 1. The foregoing recitals are true and correct. Section 2. The Resolution of Intention is hereby amended by deleting Exhibits A and B thereto and by inserting therein, in lieu thereof, the text of Exhibits A and B to this Resolution. Section 3. The proposed special tax to be levied within the District has not been precluded by majority protest pursuant to Section 53324 of the Law. On April 10, 2001, this Board of Directors adopted a resolution approving Local Goals and Policies for Community Facilities Districts, and this Board of Directors hereby finds and determines that the District is in conformity with said goals and policies. Section 4. All prior proceedings taken by this Board of Directors in connection with the establishment of the District and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Law. -2- Section 5. The community facilities district designated "Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston)" is hereby established pursuant to the Law. Section 6. The boundaries of the District, as described in the Resolution of Intention and set forth in the boundary map of the District recorded in the Riverside County Recorder's Office at Book 50 of Maps of Assessment and Community Facilities Districts at Page 53, are hereby approved, are incorporated herein by this reference and shall be the boundaries of the District. Section 7. The type of facilities and services eligible to be funded by the District pursuant to the Law, and the Prior Bonds to be defeased by the District pursuant to the Law, are as described in Exhibit A to this Resolution which Exhibit is by this reference incorporated herein. This Board of Directors hereby finds that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring in the District. The execution and delivery by the Executive Director of a Joint Community Facilities Agreement between the Authority and the City of Temecula in the form on file with the Secretary, is hereby ratified. This Board of Directors also authorizes and directs the Executive Director to execute a Joint Community Facilities Agreement with the State of California Department of Transportation, in a form provided by Bond Counsel, as necessary under the Law to finance those Facilities to be owned by said agency. This Board of Directors hereby declares that said Joint Community Facilities Agreements will be beneficial to residents in the area of the District. Section 8. Except to the extent that funds are otherwise available to the District to pay for the Facilities and Services, to pay the costs to defease the Prior Bonds, and/or to pay the principal and interest as it becomes due on bonds of the District issued to finance the Facilities and defease the Prior Bonds, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the District, will be levied within the District and collected in the same manner as ordinary ad valorem property taxes or in such other manner as this Board of Directors shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit B to this Resolution which Exhibit is by this reference incorporated herein. This Board of Directors hereby finds that the basis for the levy and apportionment of the special tax, as set forth in the Rate and Method, is reasonable. Section 9. The Treasurer of the Temecula Public Financing Authority, 43200 Business Park Drive, Temecula, CA 92590, telephone number (909) 694-6430, is the officer of the Authority that will be responsible for preparing annually and whenever otherwise necessary a current roll of special tax levy obligations by assessor's parcel number and which will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Law. Section 10. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the Authority ceases. -3- Section 11. In accordance with Section 53325.7 of the California Government Code, the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, of the District is hereby preliminarily established at $25,000,000 and said appropriations limit shall be submitted to the voters of the District as provided below. The proposition establishing the appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of Section 53325.7 of the Law. Section 12. Pursuant to the provisions of the Law, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the District at an election, the time, place and conditions of which election shall be as specified by a separate resolution of this Board of Directors. Section 13. 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 26th day of March, 2002. Ron Roberts, Chairperson ATTEST: Susan W. Jones, CMC City Clerk/Authority Secretary 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 02- was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 26th day of March, 2002, by the following vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Susan W. Jones, CMC City Clerk/Authority Secretary -5- EXHIBIT A TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) DESCRIPTION OF FACILITIES AND SERVICES ELIGIBLE TO BE FUNDED BY THE DISTRICT AND PRIOR BONDS TO BE DEFEASED BY THE DISTRICT FACILITIES It is intended that the District will finance $5,150,000 of the costs of any of the following: 1. Offsite Street and Signal Improvements, including design/engineering, right-of-way and construction management related to the following: a. Rustic Glen Drive at Margarita Road b. Margarita Road at South Project Residential c. Winchester Road at Ynez Road d. Winchester Road at Margarita Road e. Winchester Road at Jefferson Ave. f. Winchester Road at 1-15 Southbound Ramp g. Margarita Road, Complete East One Half Widening h. Murrieta Hot Springs Road at Jefferson Avenue - City of Murrieta i. Murrieta Hot Springs Road at Alta Murata Drive - City of Murrieta j. Murrieta Hot Springs Road at Margarita Road - County of Riverside k. Overland Drive at Jefferson Ave. I. Overland Drive at Ynez Road m. Overland Drive at Margarita Road n. Date Street at Ynez Road o. Date St at Service Commercial Access I, No Signal Control Needed p. Date St at North Project Residential Access Road q. Ynez Road at Service Commercial Access II, No Signal Control Needed r. Ynez Road at Service Commercial Access III, No Signal Control Needed s. Ynez Road at Service Commercial Access IV t. Date Street at Margarita Road u. Cherry/Date Streets Interchange Design Project 2. Harveston Backbone Street and Storm Drain Improvements, including design/ engineering and construction management related to the following: a. Margarita Road, complete improvements from Date Street to Santa Gertrudis Creek. b. Date Street, median and southerly one-half between Margarita Road and Northerly Entrance Road. c. Date Street, full width, Northerly Entrance to Ynez Road d. Date Street, full width, Ynez Road to 1-15. e. Ynez Road, full width, existing Ynez Road to Date Street f. Ynez Road, full width, Date Street to northerly city limits. g. Easterly Residential Access Road, full width (Harveston School Road) h. Loop Road, full width, lying adjacent to elementary school. A-1 SERVICES Maintenance of an approximately 8.5 acre lake within or in the vicinity of the District, including but not limited to water supply, chemical treatment, workboat, boat house, boat operator, spray fountain, skimming, fish replenishment, repair and replacement of lights, pumps, motors, planting and replacement of reparian plant materials, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. Maintenance of an approximately 7.5 acres of landscaped parkland located within or in the vicinity of the District, including an amphitheater, gazebo, tot lot, restroom trails, benches, picnic tables and lighting. Maintenance services include, but are not limited to, park landscaping and irrigation, fertilizing, and maintenance of amphitheater, gazebo, restroom and tot lot structures, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. PRIOR BONDS It is intended that the District will provide funds necessary to defease the outstanding Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series A, which are secured by a special tax lien on property in the District. OTHER The District may also finance any of the following: 1. Bond related expenses, including underwriters discount, reserve fund, capitalized interest, letter of credit fees and expenses, bond and disclosure counsel fees and expenses, bond remarketing costs, and all other incidental expenses. 2. Administrative fees of the Authority, the City of Temecula and the Bond trustee or fiscal agent related to the District and the Bonds. 3. Reimbursement of costs related to the formation of the District advanced by the Authority, the City of Temecula, any landowner in the District, or any party related to any of the foregoing, as well as reimbursement of any costs advanced by the Authority, the City of Temecula, any landowner in the District or any party related to any of the foregoing, for facilities, fees or other purposes or costs of the District. A-2 EXHIBIT B TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) RATE AND METHOD Of APPORTIONMENT OF SPECIAL TAX A Special Tax shall be levied and collected on all Taxable Property in the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) CCFD No. 01-2") each Fiscal Year in an amount determined by the CFD Administrator through the application of the appropriate Special Tax based on the procedures described below. All of the real property within CFD No. 01-2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other similar recorded County instrument. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 01-2, including but not limited to: the costs of computing the Special Taxes and of preparing the annual Special Tax collection schedules (whether by the CFD Administrator or designee thereof or both); the costs of collecting the Special Taxes (whether by the Authority, County, City, or otherwise); the costs of remitting the Special Taxes to the Trustee for any Bonds; the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under any Indenture; the costs of the Authority, City or designee in complying with arbitrage rebate and disclosure requirements of applicable federal and State securities laws, the Act and the California Government Code, including property owner inquiries regarding the Special Taxes; the costs associated with the release of funds from any escrow account; the costs of the Authority, City or designee related to an appeal of the Special Tax; and an allocable share of the salaries of the City staff and City overhead expense directly relating to the foregoing. Administrative Expenses shall also include amounts advanced by the City or the Authority for any administrative purposes of CFD No. 01- 2~ "Apartment Property" means any Assessor's Parcels of Developed Property for which building permits have been issued for attached residential units which are made available for rental, but not purchase, by the general public. B-1 "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Assigned Special Tax A or Assigned Special Tax B. "Assigned Special Tax A" means the Special Tax A for each Land Use Class of Developed Properly, as determined in accordance with Section C below. "Assigned Special Tax B" means the Special Tax B for each Land Use Class of Developed Property, as determined in accordance with Section C below. "Authority" means the Temecula Public Financing Authority. "Average Interest Rate" means the quotient resulting from the division of (a) the sum of the interest rates borne by the Variable Rate Bonds on each Wednesday of the previous Fiscal Year divided by (b) the number of weeks for which the Variable Rate Bonds were outstanding in such Fiscal Year, as such quotient is calculated by the CFD Administrator. This rate shall be calculated without regard to the number of Variable Rate Bonds that were outstanding during the previous Fiscal Year or at the time of calculation. "Backup Special Tax A" means the Special Tax A applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Board of Directors" means the Board of Directors of the Authority, acting as the legislative body of CFD No. 01-2. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued or incurred by CFD No. 01-2 under the Act. "CFD Administrator" means the Finance Director of the City, or designee thereof, responsible for determining the Special Tax required, the Average Interest Rate, and various other amounts described herein for providing for the levy and collection of the Special Taxes. "CFD No. 01-2" means Community Facilities District No. 01-2 (Harveston) of the Temecula Public Financing Authority. "City" means the City of Temecula. "Conversion Amount" means the costs of converting Variable Rate Bonds to Fixed Rate Bonds on a Conversion Date, including but not limited to underwriters or purchasers discount, legal fees and expenses, printing costs, Trustee's fees and costs, a charge for City staff related to such conversion, special tax consultant fees and expenses, appraisal fees, financial advisory fees, and other similar expenses. "Conversion Date" means any date on which any Variable Rate Bonds may be converted to Fixed Rate Bonds pursuant to the applicable Indenture for such Bonds. "County" means the County of Riverside. B-2 "Developed Property" means all Taxable Property, exclusive of Property Owner Association Property and Public Property, for which (i) a Final Subdivision was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied and (ii) a building permit was issued after January 1, 2001, but prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied. "Extraordinary Special Tax A" means a Special Tax A levied on Other Undeveloped Property as described in Section E. "Final Conversion" means the date on which the last of any Variable Rate Bonds are redeemed or converted to Fixed Rate Bonds, which date shall not be later than the 10th anniversary of the issuance of the Variable Rate Bonds subject to conversion. "Final Subdivision" means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or the recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Fixed Rate Bond(s)" means any Outstanding Bond that pays at a fixed rate of interest until its principal has been fully paid. "Indenture" means the indenture, trust agreement, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the Maximum Special Tax A and Maximum Special Tax B. "Maximum Special Tax A" means the maximum amount of Special Tax A, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel to satisfy the Special Tax A Requirement. "Maximum Special Tax B" means the maximum amount of Special Tax B in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel to satisfy the Special Tax B Requirement. "Non-Residential Floor Area" means the total floor area of a non-residential building(s) located on an Assessor's Parcel, measured from outside wall to outside wall, exclusive of overhangs, porches, patios, carports, or similar spaces attached to the building but generally open on at least two sides, as determined by reference to the building permit(s) issued for that Assessor's Parcel, ar if these are not available, as otherwise determined by the CFD Administrator. "One-Time Special Tax A" means a Special Tax A that may be levied on Other Undeveloped Property as described in Section F, below. "Other Non-Residential Property" means all Assessor's Parcels of Developed Properly for which a building permit(s) has been issued for a non-residential use, except for Service Commercial Property. B-3 "Other Undeveloped Property" means all Undeveloped Property that is not Service Commercial Property. "Outstanding Bond(s)" means, as of any date, all Bonds previously issued that are outstanding under the applicable Indenture. "Park" means approximately 7.5 acres of landscaped parkland and an 8.5 acre lake located in Planning Area 3 of the Harveston Specific Plan approved on August 28, 2001. "Property Owner Association Property" means any property within the boundaries of CFD No. 01-2 that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder, to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property within CFD No. 01-2. For Undeveloped Property, "Proportionately" means (i) under the second step of the Method of Apportionment in Section D, that the ratio of the actual Special Tax A levy per Acre of Undeveloped Property that is Service Commercial Property to $1,960 and the ratio of the actual Special Tax A levy per Acre of all Other Undeveloped Property to $3,212 is equal for all Assessor's Parcels of Undeveloped Property and that the ratio of the actual Special Tax B levy per Acre of Undeveloped Property will be equal, and (ii) under the third step of the Method of Apportionment in Section D, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax is equal for all Assessor's Parcels of Other Undeveloped Property. "Public Property" means any property within the boundaries of CFD No. 01-2 that is used for rights-of-way or any other purpose and is owned by or irrevocably offered for dedication to the federal government, the State, the County, the City or any other public agency. Once a parcel has been designated as Public Property, it shall retain such status permanently. "Residential Floor Area" means all of the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD Administrator with reference to the building permit(s) issued for such Assessor's Parcel or other appropriate means selected by the CFD Administrator. Once such determination has been made for a parcel, it shall remain fixed in all future Fiscal Years. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling units. "Service Commercial Property" means all property located within the area defined in Exhibit 1 except for Assessor's Parcels developed as Residential Property. "Single Family Property" means all Assessor's Parcels of Residential Property, other than Apartment Property, for which building permits have been issued for detached or attached residential units. "Special Tax" means Special Tax A or Special Tax B. "Special Tax A" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Properly, Undeveloped Property, Taxable Property Owner Association B-4 Property and Taxable Public Property to fund the Special Tax A Requirement, and shall include Special Taxes levied or to be levied under Sections D, E or F, below. "Special Tax B" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcels of Developed Property, or Undeveloped Property, to fund the Special Tax B Requirement, and shall include Special Taxes levied or to be levied under Sections D, E or F, below. "Special Tax A Requirement" means that amount required in any Fiscal Year for CFD No. 01-2 to: (a) (i) pay debt service on all Fixed Rate Bonds for the calendar year that commences in such Fiscal Year, (ii) pay debt service on all Variable Rate Bonds for the calendar year that commences in such Fiscal Year, assuming a constant interest rate of 3.5% for all Variable Rate Bonds for the 2002-03 Fiscal Year levy, and assuming a constant interest rate for each Fiscal Year thereafter equal to the Average Interest Rate for the Fiscal Year immediately preceding that for which the Special Tax A Requirement is being determined; (iii) pay periodic costs on the Bonds, including but not limited to, credit enhancement, liquidity support and rebate payments on the Bonds; (iv) pay Administrative Expenses; and (v) 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 Indenture, as determined by the CFD Administrator. "Special Tax B Requirement" means that amount required in any Fiscal Year for CFD No. 01-2 to pay the estimated costs of providing services, including the salaries of City staff related to and a proportionate share of City overhead costs, for the maintenance of the Park in an amount not to exceed $206,276 for Fiscal Year 2002-2003, increasing by 1% each Fiscal Year there after. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 01-2 that are not exempt from the Special Tax pursuant to law or Section G below. "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section G below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section G below. "Total Floor Area" means for an Assessor's Parcel, the sum of the Residential Floor Area plus the Non-Residential Floor Area. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Property Owner Association Property or Taxable Public Property. "Update Property" means an Assessor's Parcel of Undeveloped Property for which a building permit has been issued, but which has not yet been classified as Developed Property, Taxable Property Owner Association Property or Taxable Public Property. "Variable Rate Bond(s)" means any Outstanding Bond that is not a Fixed Rate Bond. B-5 B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 01-2 shall be classified as Developed Property, Taxable Public Properly, Taxable Property Owner Association Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C, D, E, and F below. Developed Property shall be assigned to a Land Use Class as specified in Table The Assigned Special Tax for Residential Property shall be based on the Residential Floor Area located on the Assessor's Parcel, unless it qualifies as Apartment Property, for which the Assigned Special Tax shall be based on the number of dwelling units. The Assigned Special Tax for Service Commercial Property and Other Non-Residential Property shall be based on the Acreage of the Assessor's Parcel, except that any Assessor's Parcel of Service Commercial Property that has become Residential. Property shall be assigned to Land Use Classes 1 through 6, and shall no longer be considered Service Commercial Property for Assigned Special Tax or Backup Special Tax A purposes. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax A shall be the greater of (i) the amount derived by application of the Assigned Special Tax A, or (ii) the amount derived by application of the Backup Special Tax A. The Maximum Special Tax B shall be the Assigned Special Tax B. The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be Maximum Special Tax A plus Maximum Special Tax B. b. Assigned Special Tax The Assigned Special Tax for Developed Property in each Fiscal Year for each Land Use Class, starting with Fiscal Year 2002-03 and for each Fiscal Year thereafter, is shown below in Table 1. B-6 TABLE 1 Assigned Special Tax Amounts for Developed Property For Fiscal Year 2002-03 Community Facilities District No. 01-2 Combined Land Assigned Assigned Assigned Use Special Tax A Special Tax B Special Tax Class Description Residential Floor Per UnitJAcre Per UnitJAcre Per UnitJAcre Area 1 Single Family 3,050 or more square $1,574 per unit $107 per unit $1,681 per unit Property feet 2 Single Family 2,650 or more, but less $1,280 per unit $107 per unit $1,387 per unit Property than 3,050 square feet 3 Single Family 2,250 or more,.but less $1,146 per unit $107 per unit $1,253 per unit Property than 2,650 square feet 4 Single Family 1,850 or more, but less $892 per unit $107 per unit $999 per unit Property than 2,250 square feet 5 Single Family <1,850 square feet $483 per unit $107 per unit $590 per unit Property 6 Apartment Property Not Applicable $200 per unit $107 per unit $307 per unit 7 Service Commercial Property* Not Applicable $1,960 per $0 per Acre $1,960 per Acre Acre 8 Other Non- Residential Property Not Applicable $6,126 per $685 per Acre $6,811 per Acre Acre *Notwithstanding Table 1, any residential development occurring on Service Commercial/ Property shall be taxed at the rates listed under Land Use Classes 1-6, as applicable. For each Fiscal Year following Fiscal Year 2002-2003, the tax rates for Assigned Special Tax B stated above shall increase by an amount equal to 1.00% of the maximum tax rates in effect for the prior Fiscal Year. c. Backup Special Tax A The Backup Special Tax A for Developed Property in each Fiscal Year, starting with Fiscal Year 2002-2003 and for each Fiscal Year thereafter, shall be $6,126 per Acre for Residential Property and Other Non-Residential Property, and $1,960 per Acre for Service Commercial Property. d. Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Assigned Special Tax levied on an Assessor's Parcel shall be the sum of the Assigned Special Tax levies for all Land Use Classes located on that Assessor's Parcel. The Backup Special Tax A levied on an Assessor's Parcel shall be the sum of the Backup Special Tax A levies that can be imposed on all Land Use Classes located on that Assessor's Parcel. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum B-7 of the Maximum Special Tax levies that can be imposed on all Land Use Classes located on that Assessor's Parcel. For purposes of calculating the Backup Special Tax A (but not the Assigned Special Tax A) for each Land Use Class under such circumstances, the Acreage assigned to each Land Use Class shall be based on the proportion of Residential Floor Area or Non- Residential Floor Area that is built for each Land Use Class as compared with the Total Floor Area built on the Assessor's Parcel. All allocations made under this section shall be determined by the CFD Administrator, and all such allocations shall be final. 2. Undeveloped Property, Taxable Property Owner Association Property and Taxable Public Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2002-03 and future Fiscal Years for Undeveloped Propbrty that is Service Commercial Property shall be $1,960 per Acre. The Maximum Special Tax for Fiscal Year 2002-03 and future Fiscal Years for Taxable Property Owner Association Property and Taxable Public Property shall be $6,126 per Acre. The Maximum Special Tax A for Fiscal Year 2002-03 and future Fiscal Years for Other Undeveloped Property shall be $6,126 per Acre plus any Extraordinary Special Tax A or One- Time Special Tax A that may be applicable. The Maximum Special Tax B for Other Undeveloped Property shall be $685 per Acre for Fiscal Year 2002-2003 and shall increase by an amount equal to 1.00% of the maximum tax rates in effect for the prior Fiscal Year. The Maximum Special Tax for each Assessor's Parcel classified as Other Undeveloped Property, shall be Maximum Special Tax A plus Maximum Special Tax B. b. Extraordinary Special Tax A and One-Time Special Tax A The Extraordinary Special Tax A and the One-Time Special Tax A, as described in Sections E and F below, are not limited by specific maximum levels, but instead may be levied at whatever levels are required to meet the objectives of Sections E and F. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the CFD Administrator shall levy the Special Tax as follows: First: Special Tax A shall be levied on each Assessor's Parcel of Developed Property at 100% of the applicable Assigned Special Tax A for each Fiscal Year to and including the Fiscal Year in which Final Conversion occurs, irrespective of the Special Tax A Requirement, in order to pay amounts described in the definition of the "Special Tax A Requirement," as well as to accumulate funds to maintain an interest rate reserve account with respect to Variable Rate Bonds established under the Indenture at a level specified in the Indenture, to pay Conversion Amounts and for the redemption of Variable Rate Bonds under the Indenture. For each subsequent Fiscal Year, Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax A as needed to satisfy the Special Tax A Requirement. Special Tax B shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax B as needed to satisfy the Special Tax B Requirement; B-8 Second: If additional monies are needed to satisfy the Special Tax A Requirement after the first step has been completed, Special Tax A shall be levied Propodionately on each Assessor's Parcel of Undeveloped Property that is Service Commercial Property at up to $1,960 per Acre and Proportionately on each Assessor's Parcel of Other Undeveloped Property at up to $3,212 per Acre and if additional monies are needed to satisfy the Special Tax B Requirement after the first step has been completed, Special Tax B shall be levied Proportionately on each Assessor's Parcel of Other Undeveloped Property at up to 100% of the applicable Assigned Special Tax B; Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, Special Tax A shall be levied Proportionately on each Assessor's Parcel of Other Undeveloped Property at up to $6,961 per Acre; Fourth: If additional monies are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then the levy of Special Tax A on each Assessor's Parcel of Developed Property whose Maximum Special Tax A is determined through the application of the Backup Special Tax A shall be increased Proportionately from the Assigned Special Tax A up to the Maximum Special Tax A for each such Assessor's Parcel; Fifth: If additional monies are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property up to the Maximum Special Tax A for Taxable Property Owner Association Property; and Sixth: If additional monies are needed to satisfy the Special Tax A Requirement after the first five steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property up to the Maximum Special Tax A for Taxable Public Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property used for private residential purposes be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 01-2. E. EXTRAORDINARY SPECIAL TAX A If at any time during a Fiscal Year the interest rate on Variable Rate Bonds exceeds the rate described in clause (a)(ii) of the definition of "Special Tax A Requirement" that was utilized to determine that Fiscal Year's Special Tax A Requirement, it may be necessary to levy an Extraordinary Special Tax A on all Other Undeveloped Property to cover any shortfall in funds available to pay interest due on Variable Rate Bonds in such Fiscal Year. Three business days prior to any interest payment date for Variable Rate Bonds, if sufficient funds are not available in a debt service or interest rate reserve account for the payment of Variable Rate Bonds under the Indenture, the CFD Administrator shall levy Special Taxes Proportionately on Assessor's Parcels classified for such Fiscal Year as Other Undeveloped Property in an aggregated amount equal to the amount of the insufficiency, and the payment of Special Taxes so levied shall be due and payable on (and will be delinquent if not paid by) the day prior to such interest payment date. Special Taxes levied under Section E shall be levied by means of direct billing to the affected property owners. B-9 F. ONE-TIME SPECIAL TAX A In any Fiscal Year up to and including the Fiscal Year in which the Final Conversion occurs, there shall be levied on each Assessor's Parcel classified in such Fiscal Year as Other Undeveloped Property a One-Time Special Tax A in an amount determined by the CFD Administrator as follows: (i) three business days prior to Final Conversion, in an amount equal to the cost of redemption of any Variable Rate Bonds that are not expected to be converted to Fixed Rate Bonds on the Final Conversion, and (ii) three business days prior to any Conversion Date in an amount equal to (a) the Conversion Amount, less (b) any amounts then available for payment of the costs of conversion of Variable Rate Bonds to Fixed Rate Bonds or such Conversion Date in an account established for such purpose under the Indenture. Special Taxes levied under this Section F shall be levied by means of direct billing to the affected property owner(s). Payment of Special Taxes so levied shall be due no later than the date of Final Conversion or the Conversion Date to which the levy pertains. G. EXEMPTIONS No Special Tax shall be levied on up to 16.5 Acres of Property Owner Association Property and on up to 93.3 Acres of Public Property. The CFD Administrator will assign tax-exempt status to Assessor's Parcels in the chronological order in which such Parcels are known to the CFD Administrator to become Property Owner Association Property or Public Property. Once an Assessor's Parcel has been classified as Public Property, its tax-exempt status will be permanent, independent of its future uses. All Assessor's Parcels that have fully prepaid their Special Tax A lien pursuant to Section J are exempt from future Special Tax A levies, but shall be subject to Special Tax B levies. Property Owner Association Property or Public Property that is not exempt from Special Tax A levies under this section shall be subject to the levy of Special Tax A and shall be taxed Proportionately as part of the fifth and sixth steps, respectively, in Section D above, at up to 100% of the applicable Maximum Special Tax A for Taxable Property Owner Association Property or Taxable Public Property. H. REVIEW AND APPEAL Any taxpayer may file a written appeal of the Special Tax A or Special Tax B levied on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant's property. No refunds of previously paid Special Taxes shall be made. B-lO I. MANNER OF COLLECTION The Special Tax as levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 01-2 or as otherwise determined appropriate by the CFD Administrator. For purposes of Sections E and F, the CFD Administrator shall directly bill the affected property owners for the Extraordinary Special Tax A levies and One-Time Special Tax A levies, unless an alternative mechanism has been determined by the CFD Administrator. J. PREPAYMENT OF SPECIAL TAX A The following definition applies to Section J. "Outstanding Prepayment Bonds" means, as of any date, all Bonds previously issued that are anticipated by the CFD Administrator to be outstanding under the applicable Indenture immediately after the first principal payment date for such Bonds following the then current Fiscal Year. 1. Prepayment in Full - Special Tax A The Special Tax A obligation described in Section D above with respect to any Assessor's Parcel of Developed Property, Update Property, or Undeveloped Property that is Service Commercial Property may be fully prepaid, except that a Special Tax B shall be levied on such Assessor's Parcel after the prepayment has occurred. In addition, the Special Tax A obligation of any Assessor's Parcel of Taxable Public Property and/or Taxable Property Owner Association Property may be prepaid, without a Special Tax B being levied thereafter. A prepayment may be made on an Assessor's Parcel only if there are no delinquent Special Tax levies with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax A obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel.. The CFD Administrator may charge the Assessor's Parcel owner a reasonable fee for providing these figures, which must be paid by the owner of the Assessor's Parcel prior to the calculation of the prepayment amount. Prepayment must be made not less than 15 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The Prepayment Amount (defined below) for any Assessor's Parcel of Taxable Public Property may be determined by the CFD Administrator as authorized under Sections 53317.3 and 53317.5 of the Act. However, no Special Tax A prepayment for any Assessor's Parcel of Taxable Public Property shall be allowed unless the amount of Assigned Special Tax A levies that may be imposed on Taxable Property within CFD No. 01-2 after the proposed prepayment is at least 1.1 times the maximum annual debt service on al~ Outstanding Bonds. The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): B-11 Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses ~ess Reserve Fund Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount shall be calculated as follows: Para,qraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property and Service Commercial Property that is Developed Property, compute the Assigned Special Tax A and Backup Special Tax A applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Service Commercial Property that are Undeveloped Property, compute the Maximum Special Tax A for the Assessor's Parcel to be repaid. For Assessor's Parcels of Undeveloped Property which are also classified as Update Property, compute the Assigned Special Tax A and Backup Special Tax A for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. 3. (a) Divide the Assigried Special Tax A or Maximum Special Tax A computed pursuant to paragraph 2 by the estimated Assigned Special Tax A levies for all of CFD No. 01-2 based on the Developed Property Special Tax A levies which could be imposed in the current Fiscal Year on all expected development in CFD No. 01-2, excluding any Assessor's Parcels which have been prepaid; and (b) Divide the Backup Special Tax A computed pursuant to paragraph 2 by the estimated Backup Special Tax A levies at buildout for CFD No. 01-2 using the Backup Special Tax A amounts for the current Fiscal Year, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or $(b) by the Outstanding Prepayment Bonds, and (if determined necessary by the CFD Administrator to effect the redemption of Bonds with such prepayment) round up to the nearest integral multiple of $5,000 to compute the amount of Outstanding Prepayment Bonds to be retired and prepaid (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Prepayment Bonds to be redeemed (the "Redemption Premium"). 6. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Prepayment Bonds. Under a variable- rate bond scenario, the amount needed to pay interest on the Bond Redemption Amount shall be determined by the CFD Administrator. B-12 7. Determine the amount of the Special Tax A levied on the Assessor's Parcel in the current Fiscal Year which, has not yet been paid. 8. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Prepayment Bonds to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount computed pursuant to paragraph 8 (the "Defeasance Amount"). 10. Verify the administrative fees and expenses of CFD No. 01-2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 11. If bond reserve funds for the Outstanding Prepayment Bonds, if any, are anticipated to be at or above 100% of the bond reserve requirement (as specified in the Indenture) immediately after the first principal payment date in the next Fiscal Year, the reserve fund credit shall equal the expected reduction in the bond reserve requirement, if any, associated with the redemption of Outstanding Prepayment Bonds as a result of the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if bond reserve funds are anticipated to be below 100% of the bond reserve requirement immediately after the first principal payment date in the next Fiscal Year. 12. The Special Tax A prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 9 and 10, less the amounts computed pursuant to paragraph 11 (the "Prepayment Amount"). 13. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, and 9 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Prepayment Bonds or make debt service payments. The amount computed pursuant to paragraph 10 shall be retained by CFD No. 01-2. The Prepayment Amount may be insufficient to redeem an integral multiple of $5,000 of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Bonds. As a result of the payment of the current Fiscal Year's Special Tax A levy as determined under paragraph 7 (above), the CFD Administrator shall remove the Special Tax A from the current Fiscal Year's levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Board of Directors shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax A and the release of the Special Tax A lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax A shall cease. However, Special Tax B shall still be levied on such Assessor's Parcels. Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property within CFD No. 01- 2 after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. B-13 2. Prepayment in Part - Special Tax A The Maximum Special Tax A on an Assessor's Parcel of Developed Property, Update Property or Service Commercial Property may also be partially prepaid. The amount of the prepayment shall be calculated as in Section J.1; except that a partial prepayment shall be calculated according to the following formula (provided that the partial prepayment must in any event be sufficient to, in addition to payment of all other components of the Prepayment Amount, redeem Bonds in increments of $5,000): PP=PE xF These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section J.1 F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the Maximum Special Tax A. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Special Tax A shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Special Tax A, (ii) the percentage by which the Maximum Special Tax A shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Special Tax A for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. Such fee must be paid prior to the calculation of the Prepayment Amount. With respect to any Assessor's Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the funds remitted to it according to Paragraph 13 of Section J.1. and (ii) indicate in the records of CFD No. 01-2 that there has been a partial prepayment of the Maximum Special Tax A and that a portion of the Maximum Special Tax A equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax A shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. Special Tax B shall also be levied on such Assessor's Parcel. K. TERM OF SPECIAL TAX Special Tax A shall be levied for a period not to exceed 50 Fiscal Years, commencing with Fiscal Year 2002-03. All Assessor's Parcels of Taxable Property within CFD No. 01-2 shall continue to be subject to the levy and collection of the Special Tax to satisfy Special Tax B Requirement as long as the City operates and maintains the Park. B-14 EXHIBIT 1 LEGAL DESCRIPTION SERVICE COMMERCIAL PROPERTY That certain parcel of land situated in the City of Temecula, County of Riverside, State of California, being those portions of Lots 109, 110, 120 and 121 (together with those portions of vacated Date Street, Monroe Avenue and Jackson Avenue adjoining said lots), all as shown on a Map of the Temecula Land and Water Company filed in Book 8, Page 359 of Maps, Records of San Diego County, California, together with a portion of Parcel 4 of Parcel Map No. 19677 (together with that portion of Ynez Road adjoining said Parcel 4), all as shown on a map filed in Book 135, Pages 85 and 86 of Parcel Maps, Records of Riverside County, California, described as a whole as follows: BEGINNING at the most northerly corner of said Lot 121, said corner being a point on the centerline of said Jackson Avenue; thence along said centerline South 41~38'09" East 1290.73 feet to the most northerly corner of said Lot 120; thence continuing along said centerline South 42"014'33" East 1290.79 feet to the most easterly corner of said Lot 120; thence continuing along said centerline South 41"052'47" East 794.56 feet to the centerline of said Ynez Road; thence along said centerline of Ynez Road South 30~o07'20'' West 432.14 feet to the beginning of a tangent curve concave southeasterly 'and having a radius of 1675.00 feet; thence along said curve southwesterly 699.71 feet through a central angle of 230o56'04" to the easterly prolongation of a course in the southeasterly line of said Parcel 4 shown as "North 83~48'37" West" on said Parcel Map; thence radically from said curve, along said course and prolongation North 83.048'44'' West 142.82 feet to an angle point in said southeasterly line; thence along said southeasterly line South 63~o31'52" West 962.68 feet to the most southerly corner of said Parcel 4 and a point in the northeasterly line of Interstate 215; thence along said northeasterly line through the following courses: North 29,o26'02'' West 376.97 feet; thence North 30oo35'46'' West 450.40 feet; thence North 28oo41'12'' West 758.78 feet; thence North 18~040'57'' West 346.24 feet; thence North 280o39'30" West 199.91 feet; thence North 37"045'11" West 253.17 feet; B-15 thence North 29~58'20" West 449.97 feet; thence North 21 ~49'02" West 251.95 feet; thence North 28".24'39" West 519.02 feet to the northwesterly line of said Lot 121; thence along said northwesterly line North 48~10'42" East 1190.56 feet to the POINT OF BEGINNING. CONTAINING: 135.24 Acres, more or less. SUBJECT To all covenants, rights, rights-of-way and easements of record. B-16 RESOLUTION NO. TPFA 02- 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. 01-2 (HARVESTON) AND SUBMITTING PROPOSITION TO THE QUALIFIED ELECTORS OF THE DISTRICT WHEREAS, on December 11, 2001, this Board of Directors adopted a resolution entitled '% Resolution of the Board of Directors of the Temecula Public Financing Authority Declaring Its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes Therein" (the "Resolution of Intention") stating its intention to form the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "District"), pursuant to the Mello-Roos Community Facilities Act of 1982, California Government Code Section 53311 et seq. (the "Law"), to fund a portion of the costs of certain public improvements (the "Facilities") and certain maintenance services (the "Services") and to fund the costs to defease bonds (the "Prior Bonds") secured by a special tax lien on parcels in the District, as described therein; and WHEREAS, on December 11, 2001, this Board of Directors also adopted a resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Declaring Its Intention to Incur Bonded Indebtedness of the Proposed Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston)" (the "Resolution of Intention to Incur Indebtedness") stating its intention to incur bonded indebtedness within the boundaries of the District for the purpose of financing a portion of the costs of the Facilities and of financing the defeasance of the Prior Bonds; and WHEREAS, the Resolution of Intention and the Resolution of Intention to Incur Indebtedness called for public hearings on the District to be held on January 22, 2002 and on such date this Board of Directors opened the public hearings and continued the public hearings to February 12, 2002; and WHEREAS, on February 12, 2002, this Board of Directors adopted a resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Making Findings of Complexity of Proposed Community Facilities District No. 01-2 (Harveston)," pursuant to which resolution this Board of Directors found that the complexity of the District and the need for public participation required additional time, and thereby further continued the public hearings to February 26, 2002; and WHEREAS, on February 26, 2002, this Board of Directors again continued the public hearings to March 5, 2002, and on March 5, 2002, this Board of Directors again continued the public hearings to March 26, 2002; and WHEREAS, since the date of adoption of the Resolution of Intention, (i) the list of the Facilities eligible to be funded by the District has been revised to eliminate certain improvements previously listed in the Resolution of Intention, and (ii) the proposed Rate and Method of Apportionment of Special Taxes for the District (the "Rate and Method") has been revised to clarify certain matters set forth therein, and the landowners in the District have been provided with the revised description of the Facilities and the revised Rate and Method; and WHEREAS, on this date, this Board of Directors held the continued public hearing as required by the Law and the Resolution of Intention relative to the determination to proceed with the formation of the District, the provision by the District of funds to pay a portion of the costs of the Facilities and Services and to defease the Prior Bonds, and the rate and method of apportionment of the special tax to be levied within the District to pay the principal and interest on the proposed indebtedness, the costs of the Services and the administrative costs of the Authority and the City of Temecula relative to the District; and WHEREAS, at the hearing all persons desiring to be heard on all matters pertaining to the formation of the District, the provision of funds to pay a portion of the costs of the Facilities and Services and to pay the costs to defease the Prior Bonds, and the levy of the special tax on property within the District, were heard and a full and fair hearing was held; and WHEREAS, subsequent to the hearing, this Board of Directors adopted a resolution 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. 01-2 (Harveston), 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" (the "Resolution of Formation"); and WHEREAS, on this date, this Board of Directors held the continued public hearing as required by the Law relative to the matters material to the questions set forth in the Resolution of Intention to incur Indebtedness; and WHEREAS, no written protests with respect to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness have been filed with the Secretary. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Public Financing Authority as follows: Section 1. The foregoing recitals are true and correct. Section 2. This Board of Directors deems it necessary to incur bonded indebtedness in the maximum aggregate principal amount of $25,000,000 within the boundaries of the District. Section 3. The indebtedness is incurred for the purpose of financing $5,150,000 of the costs of the Facilities and all of the costs necessary to defease the Prior Bonds, as provided in the Resolution of Formation including, but not limited to, the costs of issuing and sailing bonds to finance costs of the Facilities and of the defeasance of the Prior Bonds and the costs of the Authority and the City of Temecula in administering the District. Section 4. The whole of the District shall pay for the bonded indebtedness through the levy of the special tax. The special tax is to be apportioned in accordance with the Rate and Method set forth in Exhibit B to the Resolution of Formation. Section 5. The maximum amount of bonded indebtedness to be incurred is $25,000,000 and the maximum term of the bonds to be issued shall in no event exceed forty (40) years. -2- Section 6. The bonds shall bear interest at a rate or rates not to exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds, payable weekly, semiannually or in such other manner as this Board of Directors or its designee shall determine, the actual rate or rates and times of payment of such interest to be determined by this Board of Directors or its designee at the time or times of safe of the bonds. Section 7. The proposition of incurring the bonded indebtedness herein authorized shall be submitted to the qualified electors of the District and shall be consolidated with elections on the proposition of levying special taxes within the District and the establishment of an appropriations limit for the District pursuant to Section 53353.5(a) of the Law. The time, place and conditions of said election shall be as specified by separate resolution of this Board of Directors. -3- Section 8. 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 26th day of March, 2002. Ron Roberts, Chairperson ATTEST: Susan W. Jones, CMC City Clerk/Authority Secretary 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 02- was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 26th day of March, 2002, by the following vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Susan W. Jones, CMC City Clerk/Authority Secretary RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY CALLING SPECIAL ELECTION WITHIN COMMUNITY FACILITIES DISTRICT NO. 0t-2 (HARVESTON) WHEREAS, on this date, this Board of Directors adopted a resolution 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. 01-2 (Harveston), 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" (the "Resolution of Formation"), ordering the formation of the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "District"), authorizing the levy of a special tax on property within the District and preliminarily establishing an appropriations limit for the District; WHEREAS, on this date, this Board of Directors also adopted a resolution entitled "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. 01-2 (Harveston) and Submitting Proposition to the Qualified Electors of the District" (the "Resolution to Incur Indebtedness"), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $25,000,000 upon the security of the special tax to be levied within the District; and WHEREAS, pursuant to the provisions of said resolutions, the propositions of the levy of said special tax, the establishment of the appropriations limit and the incurring of the bonded indebtedness is to be submitted to the qualified electors of the District as required by the Mello- Roos Community Facilities Act of 1982, California Government Code Section 53311 et seq. (the "Law"). NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Public Financing Authority as follows: Section 1. Pursuant to Sections 53325.7, 53326 and 53351 of the Law, the issues of the levy of said special tax, the incurring of bonded indebtedness and the establishment of said appropriations limit shall be submitted to the qualified electors of the District at an election called therefor as provided below. Section 2. As authorized by Section 53353.5 of the Law, the three propositions described in paragraph 1 above shall be combined into a single ballot measure, the form of which is attached hereto as Exhibit A and by this reference incorporated herein. The form of ballot is hereby approved. Section 3. This Board of Directors hereby finds that fewer than 12 persons have been registered to vote within the territory of the District for each of the ninety (90) days preceding the close of the public hearings heretofore conducted and concluded by this Board of Directors for the purposes of these proceedings. Accordingly, and pursuant to Section 53326(b) of the Law, this Board of Directors finds that for purposes of these proceedings the qualified electors are the landowners within the District and that the vote shall be by said landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the District as of the close of the public hearings. Section 4. This Board of Directors hereby calls a special election to consider the measure described in Section 2 above, which election shall be held immediately following adoption of this Resolution in the meeting place of the Board of Directors of the Temecula Public Financing Authority. The Secretary is hereby designated as the official to conduct said election. It is hereby acknowledged that the Secretary has on file the Resolution of Formation, a map of the proposed boundaries of the District, and a sufficient description to allow the Secretary to determine the boundaries of the District. The voted ballots shall be returned to the Secretary no later than immediately following the adoption of this Resolution; and when all of the qualified voters have voted, the election shall be closed. Section 5. Pursuant to Section 53327 of the Law, the election shall be conducted by mail or hand delivered ballot pursuant to the California Elections Code. This Board of Directors hereby finds that paragraphs (a), (b), (c) (1) and (c)(3) of Section 4000 of the California Elections Code are applicable to this special election. Section 6. This Board of Directors acknowledges that the Secretary has caused to be delivered to the two qualified electors of the District ballots in the form set forth in Exhibit A hereto. Each ballot indicated the number of votes to be voted by the respective landowner. Each ballot was accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return ballots was enclosed with the ballot, had the return postage prepaid, and contained the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the Secretary. Analysis and arguments with respect to the ballot measures were waived by the landowners in their petitions to form the District as well as in the voted ballots, as permitted by Section 53327(b) of the Law. Section 7. The Secretary shall accept the ballots of the qualified electors upon and prior to the adoption of this Resolution, whether the ballots be personally delivered or received by mail. The Secretary shall have available ballots which may be marked in the Board of Directors meeting room on the election day by the qualified electors. Section 8. This Board of Directors hereby further finds that the provision of the Law requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before said special election is for the protection of the qualified electors of the District. The petitions previously submitted by the two landowners in the District and the voted ballots of the two qualified electors of the District contain an acknowledgment of a waiver of any time limit pertaining to the conduct of the election and of a waiver of any requirement for analysis and arguments in connection with the election. Accordingly, this Board of Directors finds and determines that the qualified electors have been fully apprised of and have agreed to the -2- shortened time for the election and waiver of analysis and arguments, and have thereby been fully protected in these proceedings. This Board of Directors also finds and determines that the Secretary has concurred in the shortened time for the election. Section 9. Pursuant to the Local Agency Special Tax and Bond Accountability Act, Sections 50075.1 et. seq. and Sections 53410 et. seq. of the California Government Code, (a) the ballot measure referred to in Sections 2 and 4 above contains a statement indicating the specific purposes of the special tax, the proceeds of the special tax will be applied only to the purposes specified in the ballot measure, there shall be created by the Treasurer an account into which proceeds of the special tax levies will be deposited, and the Treasurer is hereby directed to provide an annual report to this Board of Directors as required by Section 50075.3 of the California Government Code; and (b) the ballot measure contains a statement indicating the specific purposes of the bonds, the proceeds of the bonds will be applied only to the purposes specified in the ballot measure, there shall be created by the Treasurer an account into which the proceeds of the bonds will be deposited, and the Treasurer is hereby directed to provide an annual report to this Board of Directors as required by Section 53411 of the California Government Code. Section 10. The Secretary is hereby directed to cause to be published in a newspaper of general circulation circulating within the District a copy of this Resolution and a copy of the Resolution to Incur Indebtedness, as soon as practicable after the date of adoption of this Resolution. PASSED APPROVED AND ADOPTED by the Board of Directors of the Temecula Public Financing Authority at a meeting held on the 26h day of March, 2002. Ron Roberts, Chairperson ATTEST: Susan W. Jones, CMC City Clerk/Authority Secretary -3- 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 02- was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 26th day of March, 2002, by the following vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Susan W. Jones, CMC City Clerk/Authority Secretary EXHIBIT A TEMECULA PUBliC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) OFFICIAL BALLOT Special Tax and Bond Election (March 26, 2002) This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the Secretary of the Temecula Public Financing Authority no later than immediately after adoption of the resolution of the Board of Directors calling said election, either by mail or in person. To vote, mark a cross (X) on the voting line after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the Secretary of the Temecula Public Financing Authority and obtain another. BALLOT MEASURE: Shall the Temecula Public Financing Authority incur an indebtedness and issue bonds in one or more series in the maximum aggregate principal amount of $25,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds on behalf of the Temecula Public Financing Authority Community Facilities District No. Yes: __ 01-2 (Harveston) (the "District"), the proceeds of which will be used only to finance the costs of certain public improvements and to defease certain bonds secured by a lien on property in the District as specified in No: the Resolution of Formation of the District and the costs of issuing the bonds as well as the establishment of appropriate bond and interest rate reserves; shall a special tax payable solely from lands within the District be levied annually upon lands within the District to be applied only to the payment of the principal and interest upon such bonds to be issued and to replenish the reserves for the bonds, to pay the costs of the services authorized to be funded by the District, and to pay the costs of the Authority and the City of Temecula in administering the District, and shall the annual appropriations limit of the District be established in the amount of $25,000,000? By execution in the space provided below, you also indicate your waiver of the time limit pertaining to the conduct of the election and any requirement for analysis and arguments with respect to the ballot measure, as such waivers are described and permitted by Section 53326(a) and 53327(b) of the California Government Code. Number of Votes: Property Owner: A-1 RESOLUTION NO. TPFA 02- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY DECLARING RESULTS OF SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN WHEREAS, in proceedings heretofore conducted by this Board of Directors pursuant to the Mello-Roos Community Facilities Act of 1982, Section 53311 et seq. of the California Government Code (the "Law"), this Board of Directors on this date adopted a resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Calling Special Election Within Community Facilities District No. 01-2 (Harveston)", calling for a special erection of the qualified electors within the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "District"); and WHEREAS, pursuant to the terms of said resolution, which are by this reference incorporated herein, the special election was held on this date, and the Secretary has on file a Canvass and Statement of Results of Election, a copy of which is attached hereto as Exhibit A; and WHEREAS, this Board of Directors has reviewed the canvass and hereby approves it. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Public Financing Authority as follows: Section t. The issues presented at the special election were the incurring of a bonded indebtedness in the maximum aggregate principal amount of $25,000,000, the levy of a special tax within the District to be levied in accordance with the rate and method of apportionment of special taxes heretofore approved by this Board of Directors by its resolution adopted this date 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. 01-2 (Harveston), Authorizing 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 the approval of an appropriations limit of not to exceed $25,000,000 pursuant to said resolution. Section 2. Pursuant to the canvass of the special election on file with the Secretary, the issues presented at the special election were approved by the qualified electors of the District by more than two-thirds of the votes cast at the special election. Section 3. Pursuant to the voter approval, the District is hereby declared to be fully formed with the authority to incur bonded indebtedness and to levy special taxes as heretofore provided in these proceedings and in the Law. Section 4. It is hereby found that all prior proceedings and actions taken by this Board of Directors with respect to the District were valid and in conformity with the Law. Section 5. The Secretary is hereby directed to execute and cause to be recorded in the office of the County Recorder of the County of Riverside a notice of special tax lien in the form required by the Law, said recording to occur no later than fifteen days following adoption by the Board of Directors of this Resolution. Section 6. 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 26th day of March, 2002. Ron Roberts, Chairperson ATTEST: Susan W. Jones, CMC City Clerk/Authority Secretary 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 02- was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 26th day of March, 2002, by the following vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Susan W. Jones, CMC City Clerk/Authority Secretary -2- EXHIBIT A CANVASS AND STATEMENT OF RESULT OF ELECTION TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) I hereby certify that on March 26, 2002, I canvassed the returns of the special election held on March 26, 2002, in the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) and the total number of ballots cast in said District and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct: Qualified Landowner Votes Votes Cast YES NO Temecula Public Financing Authority Community Facilities District No. 01- 2 (Harveston) Special Tax and Bond Election March 26, 2002. 524 BALLOT MEASURE: Shall the Temecula Public Financing Authority incur an indebtedness and issue bonds in one or more series in the maximum aggregate principal amount of $25,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds on behalf of the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "District"), the proceeds of which will be used only to finance the costs of certain public improvements and to defease certain bonds secured by a lien on property in the District as specified in the Resolution of Formation of the District and the costs of issuing the bonds as well as the establishment of appropriate bond and interest rate reserves; shall a special tax payable solely from lands within the District be levied annually upon lands within the District to be applied only to the payment of the principal and interest upon such bonds to be issued and to replenish the reserves for the bonds, to pay the costs of the services authorized to be funded by the District, and to pay the costs of the Authority and the City of Temecula in administering the District, and shall the annual appropriations limit of the District be established in the amount of $25,000,000? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 26th day of March, 2002. By: Susan W. Jones, Secretary, Temecula Public Financing Authority A-1 ORDINANCE ORDINANCE NO. TPFA 02- AN ORDINANCE OF THE TEMECULA PUBLIC FINANCING AUTHORITY LEVYING SPECIAL TAXES WITHIN TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) WHEREAS, on December 11, 2001, this Board of Directors of the Temecula Public Financing Authority (the "Authority") adopted a resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Declaring Its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes Therein" (the "Resolution of Intention"), stating its intention to establish the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) pursuant to the Mello-Roos Community Facilities Act of 1982, Section 53311 et seq. of the California Government Code (the "Law"), to finance a portion of the costs of certain public improvements (the "Facilities"), fund certain annual maintenance services (the "Services") and to finance the defeasance of certain bonds (the "Prior Bonds") secured by a special tax lien on parcels in the District; WHEREAS, notice was published as required by the Law of the public hearing called pursuant to the Resolution of Intention relative to the intention of this Board of Directors to form the District and to provide for a portion of the costs of the Facilities, fund the annual costs of the Services and pay the costs to defease the Prior Bonds; WHEREAS, the Resolution of Intention called for a public hearing on the District to be held on January 22, 2002 and on such date this Board of Directors opened the public hearing and continued the public hearing to February 12, 2002; and WHEREAS, on February 12, 2002, this Board of Directors adopted a resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Making Findings of Complexity of Proposed Community Facilities District No. 01-2 (Harveston)," pursuant to which resolution this Board of Directors found that the complexity of the District and the need for public participation required additional time, and thereby further continued the public hearing to February 26, 2002; and WHEREAS, on February 26, 2002, this Board of Directors again continued the public hearings to March 5, 2002, and on March 5, 2002, this Board of Directors again continued the public hearings to March 26, 2002; and WHEREAS, since the date of adoption of the Resolution of Intention, (i) the list of the Facilities eligible to be funded by the District has been revised to eliminate certain improvements previously listed in the Resolution of Intention, and (ii) the proposed Rate and Method of Apportionment of Special Taxes for the District (the "Rate and Method") has been revised to clarify certain matters set forth therein, and the landowners in the District have been provided with the revised description of the Facilities and the revised Rate and Method; and WHEREAS, on March 26, 2002 this Board of Directors held the public hearing as ' required by Law relative to the determination to proceed with the formation of the District and the Rate and Method; WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the District and the levy of the special taxes were heard, substantial evidence was presented and considered by this Board of Directors and a full and fair hearing was held; WHEREAS, subsequent to said hearing, this Board of Directors adopted 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. 01-2 (Harveston), 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" (the "Resolution of Formation"), "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. 01-2 (Harveston) and Submitting Proposition to the Qualified Electors of the District" (the "Resolution of Necessity") and "A Resolution of the Board of Directors of the Temecula Public Financing Authority Calling Special Election Within Community Facilities District No. 01-2 (Harveston)", which resolutions established the District, authorized the levy of a special tax with the District, and called an election within the District on the proposition of incurring indebtedness, levying a special tax and establishing an appropriations limit within the District, respectively; and WHEREAS, on March 26, 2002 an election was held within the District in which the eligible landowner electors approved said propositions. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Public Financing Authority as follows: Section t. By the passage of this Ordinance this Board of Directors hereby authorizes and levies special taxes within the District, pursuant to the Law, at the rate and in accordance with the Rate and Method approved by the Resolution of Formation which Resolution is by this reference incorporated herein. The special taxes are hereby levied commencing in the current fiscal year and in each fiscal year thereafter until payment in full of any bonds issued by the Authority for the District (the "Bonds") as contemplated by the Resolution of Formation and the Resolution of Necessity and payment in full all costs of administering the District have been paid. Section 2. The Authority Treasurer is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for each parcel of real property within the District, in the manner and as provided in the Resolution of Formation. Section 3. Properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes, to the extent set forth in the Rate and Method of Apportionment of the Special Taxes attached as Exhibit B to the Resolution of Intention. In no event shall the special taxes be levied on any parcel within the District in excess of the maximum tax specified in said Rate and Method of Apportionment of the Special Taxes. Section 4. All of the collections of the special tax shall be used as provided for in the Law and in the Resolution of Formation including the payment of principal and interest on the Bonds, the replenishment of the reserves for the Bonds, the payment of the costs of the Authority and the City of Temecula in administering the District, the payment of the costs of providing the Services, costs of the defeasance of the Prior Bonds and the costs of collecting and administering the special tax. -2- Section 5. The special taxes shall be collected from time to time as necessary to meet the financial obligations of the District on the secured real property tax roll in the same manner as ordinary ad valorem taxes are collected. The special taxes shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes. In addition, the provisions of Section 53356.1 of the California Government Code shall apply to delinquent special tax payments. The Treasurer is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at the times necessary to satisfy the financial obligations of the District in each fiscal year until the Bonds are paid in full and 'provision has been made for payment of all of the administrative costs of the District. Notwithstanding the foregoing, the Treasurer may collect one or more installments of the special taxes on any one or more parcels in the District by means of direct billing by the Authority of the property owners within the District, if any of the Bonds bear interest at a variable interest rate, or otherwise if, in the judgment of the Treasurer, such means of collection will reduce the administrative burden on the Authority in administering the District or is otherwise appropriate in the circumstances. In such event, the special taxes shall become delinquent if not paid when due as set forth in any such respective billing to the applicable property owners. -3- Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, by a Court of competent jurisdiction, the balance of this Ordinance, and the application of the special tax to the remaining parcels within the District shall not be affected. PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temecula Public Financing Authority at a meeting held on the 9th day April, 2002. Ron Roberts, Chairperson ATTEST: Susan W. Jones, CMC City Clerk/Authority Secretary 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 Ordinance No. TPFA was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 9th day of April, 2002, by the following vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Susan W. Jones, CMC City Clerk/Authority Secretary -4- COMMUNITY FACILITIES DISTRICT REPORT TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) COMMUNITY FACILITIES DISTRICT REPORT CONTENTS Introduction A. Description of Facilities, Services and Prior Bonds B. Proposed Boundaries of the Community Facilities District C. Cost Estimate Exhibit A - Description of the Proposed Facilities and Prior Bonds Exhibit B - Cost Estimate TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) INTRODUCTION. The Board of Directors (the "Board of Directors") of the Temecula Public Financing Authority (the "Authority") did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (the "Law"), on December 11, 2001, adopt a resolution entitled, "A Resolution of the Board of Directors of the Temecula Public Financing Authority Declaring Its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes Therein" (the "Resolution of Intention"). In the Resolution of Intention, the Board of Directors expressly ordered the preparation of a written Community Facilities District Report (the "Report"), for the proposed Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "District"). The Resolution of Intention ordering the Report did direct that the Report generally contain the following: 1. A brief description of the facilities and services to be funded by the District and the bonds to be defeased by the District; and 2. An estimate of the fair and reasonable cost of providing the facilities and the services, and of defeasing such bonds, including the incidental expenses in connection therewith, including the costs of the proposed bond financing, any Authority or City of Temecula administrative costs and all other related costs. For particulars, reference is made to the Resolution of Intention for the District, as previously approved and adopted by the Board of Directors. NOW, THEREFORE, I, the Director of Public Works of the City of Temecula, do hereby submit the following data: A. DESCRIPTION OF FACILITIES, SERVICES AND PRIOR BONDS. The Authority has determined that the District will not be used to fund all of the facilities identified in the Resolution of Intention. A general description of the facilities and services that the Authority has determined to be eligible to be funded and the bonds to be defeased by the District are as shown in Exhibit "A" attached hereto and hereby made a part hereof. B. PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. The proposed boundaries of the District are those properties and parcels in which special taxes may be levied to pay for the costs and expenses of the facilities and of the defeasance of the bonds. The proposed boundaries of the District are described in the map of the District recorded in Book 50 on Page 53 of Maps of Assessment and Community Facilities Districts in the office of the County Recorder for the County of Riverside, a copy of which map is on file with the Secretary. C. COST ESTIMATE. The cost estimate for the financing of the facilities and the defeasance of the bonds is set forth in Exhibit "B" attached hereto and hereby made a part hereof, Dated: March 26, 2002 By: Bill Hughes, Director of Public Works of the City of Temecula -3- EXHIBITA TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DI$TRICT NO. 01-2 (HARVESTON) DE$CRIPTION OF FACILITIES AND SERVICES ELIGIBLE TO BE FUNDED BY THE DI$TRICT AND PRIOR BONDS TO BE DEFEASED BY THE DISTRICT FACILITIES It is intended that the District will finance $5,150,000 of the costs of any of the following: 1. Offsite Street and Signal Improvements, including design/engineering, right-of-way and construction management related to the following: a. Rustic Glen Drive at Margarita Road b. Margarita Road at South Project Residential c. Winchester Road at Ynez Road d. Winchester Road at Margarita Road e. Winchester Road at Jefferson Ave. f. Winchester Road at 1-15 Southbound Ramp g. Margarita Road, Complete East One Half Widening h. Murrieta Hot Springs Road at Jefferson Avenue - City of Murrieta i. Murrieta Hot Springs Road at Alta Murata Drive - City of Murrieta j. Murrieta Hot Springs Road at Margarita Road - County of Riverside k. Overland Drive at Jefferson Ave. I. Overland Drive at Ynez Road m. Overland Drive at Margarita Road n. Date Street at Ynez Road o. Date St at Service Commercial Access I, No Signal Control Needed p. Date St at North Project Residential Access Road q. Ynez Road at Service Commercial Access II, No Signal Control Needed r. Ynez Road at Service Commercial Access III, No Signal Control Needed s. Ynez Road at Service Commercial Access IV t. Date Street at Margarita Road u. Cherry/Date Streets Interchange Design Project 2. Harveston Backbone Street and Storm Drain Improvements, including design/ engineering and construction management related to the following: a. Margarita Road, complete improvements from Date Street to Santa Gertrudis Creek. b. Date Street, median and southerly one-half between Margarita Road and Northerly Entrance Road. c. Date Street, full width, Northerly Entrance to Ynez Road d. Date Street, full width, Ynez Road to 1-15. e. Ynez Road, full width, existing Ynez Road to Date Street f. Ynez Road, full width, Date Street to northerly city limits. g. Easterly Residential Access Road, full width (Harveston School Road) h. Loop Road, full width, lying adjacent to elementary school. SERVICES Maintenance of an approximately 8.5 acre lake within or in the vicinity of the District, including but not limited to water supply, chemical treatment, workboat, boat house, boat operator, spray fountain, skimming, fish replenishment, repair and replacement of lights, pumps, motors, planting and replacement of reparian plant materials, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. Maintenance of an approximately 7.5 acres of landscaped parkland located within or in the vicinity of the District, including an amphitheater, gazebo, tot lot, restroom trails, benches, picnic tables and lighting. Maintenance services include, but are not limited to, park landscaping and irrigation, fertilizing, and maintenance of amphitheater, gazebo, restroom and tot lot structures, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. PRIOR BONDS It is intended that the District will provide funds necessary to defease the outstanding Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series A, which are secured by a special tax lien on property in the District. OTHER The District may also finance any of the following: 1. Bond related expenses, including underwriters discount, reserve fund, capitalized interest, letter of credit fees and expenses, bond and disclosure counsel fees and expenses, bond remarketing costs, and all other incidental expenses. 2. Administrative fees of the Authority, the City of Temecula and the Bond trustee or fiscal agent related to the District and the Bonds. 3. Reimbursement of costs related to the formation of the District advanced by the Authority, the City of Temecula, any landowner in the District, or any party related to any of the foregoing, as well as reimbursement of any costs advanced by the Authority, the City of Temecula, any landowner in the District or any party related to any of the foregoing, for facilities, fees or other purposes or costs of the District. A-2 EXHIBIT B TEMECULA PUBLIC FINANCING AUTHQRITY COMMUNITY FACILITIES DISTRICT NC). 01-2 (HARVESTON) FACILITIES, SERVICES AND BOND DEFEASANCE COST ESTIMATE 1. ACQUISITION &CONSTRUCTION OF FACILITIES $5,150,000 2. DEFEASANCE OF PRIOR BONDS $11,200,000 3. INCIDENTALS (a) Bond Reserve Fund $1,400,000 (b) Bond DiscountJUnderwriter 185,000 (c) Interest Reserve Account 187,500 (d) Bond Conversion Costs 1,000,000 (e) Other Costs of Issuance 514,000 Subtotal $3,286,500 4. CONTINGENCIES $5,363,500 TOTAL BOND AMOUNT NEEDED $25~000~000 5. ANNUAL COSTS OF SERVICES $206.276* * Amount shown is for Fiscal Year 2002~2003, and will increase by 1.0% (compounded) each fiscal year thereafter. JOINT COMMUNITY FACILITIES AGREEMENT JOINT COMMUNITY FACILITIES AGREEMENT TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) This Joint Community Facilities Agreement (the "Agreement"), dated for convenience as of March 5, 2002, is by and between the Temecula Public Financing Authority (the "Authority") and the City of Temecula (the "Participating Agency"). RECITALS: WHEREAS, the Authority is undertaking proceedings to form the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "CFD") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), and the Authority intends to issue bonds of the Authority for the CFD (the "Bonds") in order to finance public roadway and other improvements to be acquired and constructed in the City of Temecula; and WHEREAS, the improvements to be financed with the proceeds of the Bonds may include the improvements described in Attachment A hereto (the "Improvements"), which Attachment is, by this reference, incorporated herein; and WHEREAS, the parties hereto expect that the Participating Agency will own and operate the Improvements if they comply with the standards and have been completed to the satisfaction of the Participating Agency; and WHEREAS, all or a portion of the Improvements and certain other improvements (the "Caltrans Improvements") to be owned by the State of California Department of Transportation ("Caltrans") are to be constructed by the owner of a majority of the land in the CFD or an affiliate or designee thereof (the "Developer"), and the Authority expects to enter into an Acquisition Agreement with the Developer (the "Acquisition Agreement") whereby the Authority will use proceeds of the Bonds to acquire Improvements from the Developer and to reimburse the Developer for all or a portion of the costs of the Caltrans Improvements; and WHEREAS, the implementation of the Acquisition Agreement will involve actions by officials of the Participating Agency, and the Participating Agency is willing to provide the services of its officials as necessary to implement the provisions of the Acquisition Agreement; and WHEREAS, the CFD will also be authorized to provide certain park maintenance services (the "Services"), and the Participating Agency is willing to provide the Services to the extent it is reimbursed for certain costs thereof by the CFD; WHEREAS, Section 53316.2 of the Act requires that the Authority enter into a joint community facilities agreement with the Participating Agency, prior to the adoption by the Authority of the Resolution of Formation of the CFD, in respect of the Improvements which Improvements are to be financed with the proceeds of the Bonds, and, upon completion, are to be owned and operated by the Participating Agency, and with respect to the Services to be financed by the CFD and provided by the Participating Agency; and WHEREAS the Authority and the Participating Agency now desire to enter into this Agreement to satisfy the requirements of Section 53316.2 of the Act and to memorialize their understanding with respect to the proceeds of the Bonds, the Improvements, the Acquisition Agreement and the Services, all as more particularly set forth below. NOW, THEREFORE, in consideration of the foregoing and mutual covenants set forth below, the parties hereto do hereby agree as follows: Section 1. Reservation of Bond Funds. The Authority intends to reserve a portion of the proceeds of the Bonds in an amount necessary to finance up to $5,150,000 of the costs incurred in connection with the acquisition and construction of the Improvements. Said amount, together with any investment earnings thereon, shall be held in the Improvement Fund established for the CFD (the "Improvement Fund") for the sole and exclusive benefit of the CFD, and such amount shall in no way be pledged as security for the Bonds. Other than the funds described in the preceding paragraph, the Authority shall have no obligation to pay for any of the costs of the Improvements, including but not limited to any costs of planning, acquisition, construction, installation or inspection of the Improvements. Any costs of the Improvements in excess of the available proceeds of the Bonds will be paid by or on behalf of a landowner in the CFD. Section 2. Construction of Improvements. The Improvements have been or will be constructed pursuant to p~ans and specifications approved by the Participating Agency. The Participating Agency shall not have any liability whatsoever in respect of any work performed in connection with the Improvements; provided that this sentence shall in no way limit any rights the Participating Agency may have against any persons or entities in respect of the acquisition or construction of the Improvements once the Participating Agency accepts title to and control over the Improvements. To the extent that the Participating Agency incurs expenses incident to reviewing and approving design plans and specifications, conducting construction field inspections and otherwise in connection with the design, construction and acceptance of the Improvements, such expenses may be reimbursed to the Participating Agency upon presentation of invoices as to the nature and amount' of such costs and expenses, from available amounts in the Improvement Fund, or if there are no such available funds, then from one of the owners of the land in the CFD or from any other legally available funds. Section 3. Inspection and Acceptance; Use of Bond Funds. The Participating Agency shall cause inspections to be made during the construction of the Improvements in accordance with its customary procedures for construction projects of a similar nature. Upon completion of construction of the Improvements to the satisfaction of the Participating Agency, the Participating Agency shall accept dedication of the Improvements in accordance with its customary procedures, and shall accept ownership, and responsibility for operation of the Improvements conditioned upon the passage to the Participating Agency of fee title clear of all encumbrances and easements not otherwise acceptable to the Participating Agency in its sole discretion. ']'he Participating Agency shall have no responsibility with respect to the ownership or operation of the Improvements unless and until construction has been completed to the satisfaction of the Participating Agency. The Authority shall have no obligation to at any time own or operate any of the Improvements. Section 4. Provision of Services. The Participating Agency hereby agrees to provide the Services authorized to be financed by the CFD and otherwise identified in Attachment A -2- hereto, but only to the extent and so long as proceeds of special taxes levied in the CFD are made available to the Participating Agency for such purpose. Section 5. Assistance with Acquisition Agreement. The Participating Agency hereby agrees to assist the Authority in connection with the implementation of the Acquisition Agreement by making its Director of Public Works and other officials available for the purposes, on the terms and as otherwise provided for in the Acquisition Agreement with respect to any actions to be performed by Participating Agency officials under the Acquisition Agreement. Section 6. Limited Obliqations. All obligations of the Authority under and pursuant to this Agreement shall be limited (a) with respect to the Improvements, to the amounts on deposit in the Improvement Fund and described in Section 1 above, and (b) with respect to the Services, to the proceeds of special taxes levied in the CFD for such purpose and otherwise collected from the landowners in the CFD. No Boardmember, officer or employee of the Authority shall in any event be personally liable hereunder. The sole obligation of the Participating Agency hereunder with respect to the Improvements shall be to inspect and accept the Improvements as described above. The Participating Agency shall have no responsibility or obligation with respect to the Improvements for any action occurring prior to acceptance by the Participating Agency..If, for any reason whatsoever, there are insufficient funds to complete the Improvements or any portion thereof, the Participating Agency shall have no obligation under this Agreement to fund any such shortfall. The sole obligation of the Participating Agency hereunder with respect to the Services shall be to provide all or such portion of the Services as the Participating Agency shall determine can be provided for in respect of any special tax revenue from the CFD made available to the Participating Agency for such purpose. The sole obligation of the Participating Agency hereunder with respect to the Acquisition Agreement shall be to make available officials of the Participating Agency specifically referenced in, and for the tasks specifically to be undertaken by such officials under the terms of, the Acquisition Agreement. If the Participating Agency shall fail to perform any of its obligations hereunder, the sole remedy of the Authority shall be the commencement of an action in the Superior Court for specific performance by the Participating Agency of such obligations. Section 7. Termination. Notwithstanding any other provision of this Agreement, this Agreement shall cease to be effective and shall terminate if the Bonds are not issued by June 30, 2002. If not earlier terminated pursuant to the preceding sentence, this Agreement shall terminate: (i) as to the Improvements and the Acquisition Agreement, upon acceptance of the ownership and operation of the Improvements by the Participating Agehcy, acceptance of the ownership and operation of the Caltrans Improvements by Caltrans and disbursement of al~ amounts from the Improvement Fund to pay costs of the Improvements and the Caltrans Improvements, and (ii) as to the Services, so long as special tax revenues levied in and collected from the landowners in the CFD are made available to the Participating Agency to pay the costs of the Services. Section 8. No Obliqation to Form CFD; Agreement of Benefit to Residents. The provisions of this Agreement shall in no way obligate the Authority to form the CFD. Notwithstanding the foregoing, by their respective execution of this Agreement, the Authority and the Participating Agency each declare that this Agreement is beneficial to the residents -3- within the jurisdiction of their respective entities in assuring the provision of financing for a portion of the costs of the Improvements and the Services in furtherance of the purposes of the Act. Section 9. Partial Invalidity. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible. Section 10. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. This Agreement is for the sole benefit of the Authority and the Participating Agency and their successors and assigns, and no other person or entity shall be deemed to be a beneficiary hereof or have an interest herein. Section 11. Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. -4- IN WITNESS WHEREOF, the padies hereto have executed this Agreement as of the day and year written alongside their signature below. CITY OF TEMECULA (the "Participating Agency") Date of Execution: March 26, 2002 By:~ Shawn D. Nelson, City Manager TEMECULA PUBLIC FINANCING AUTHORITY (the "Authority") Date of Execution: March 26, 2002 By: Shawn D. Nelson, Executive Director ATTACHMENT A DESCRIPTION OF THE IMPROVEMENTS 1. Offsite Street and Signal Improvements, including design/engineering, right-of-way and construction management related to the following: a. Rustic Glen Drive at Margarita Road b. Margarita Road at South Project Residential c. Margarita Road, Complete East One Half Widening d. Murrieta Hot Springs Road at Jefferson Avenue - City of Murrieta e. Murrieta Hot Springs Road at Alta Murata Drive - City of Murrieta f. Murrieta Hot Springs Road at Margarita Road - County of Riverside g. Overland Drive at Jefferson Ave. h. Overland Drive at Ynez Road i. Overland Drive at Margarita Road j. Date Street at Ynez Road k. Date St at Service Commercial Access I, No Signal Control Needed I. Date St at North Project Residential Access Road m. Ynez Road at Service Commercial Access II, No Signal Control Needed n. Ynez Road at Service Commercial Access III, No Signal Control Needed o. Ynez Road at Service Commercial Access IV p. Date Street at Margarita Road 2. Harveston Backbone Street and Storm Drain Improvements, including design/ engineering and construction management related to the following: a. Margarita Road, complete improvements from Date Street to Santa Gertrudis Creek. b. Date Street, median and southerly one-half between Margarita Road and Northerly Entrance Road. c. Date Street, full width, Northerly Entrance to Ynez Road d. Date Street, full width, Ynez Road to 1-15. e. Ynez Road, full width, existing Ynez Road to Date Street f. Ynez Road, full width, Date Street to northerly city limits. g. Easterly Residential Access Road, full width (Harveston School Road) h. Loop Road, full width, lying adjacent to elementary school. DESCRIPTION OF THE CALTRANS IMPROVEMENTS Offsite Street and Signal Improvements, including design/engineering, right-of-way and construction management related to the following: a. Winchester Road at Ynez Road b. Winchester Road at Margarita Road c. Winchester Road at Jefferson Ave. d. Winchester Road at 1-15 Southbound Ramp e. Design of 1-15/Cherry Street Interchange DESCRIPTION OF THE SERVICES Maintenance of an approximately 8.5 acre lake within or in the vicinity of the District, including but not limited to water supply, chemical treatment, workboat, boat house, boat operator, spray fountain, skimming, fish replenishment, repair and replacement of lights, pumps, motors, planting and replacement of reparian plant materials, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. Maintenance of an approximately 7.5 acres of landscaped parkland located within or in the vicinity of the District, including an amphitheater, gazebo, tot lot, restroom trails, benches, picnic tables and lighting. Maintenance services include, but are not limited to, park landscaping and irrigation, fertilizing, and maintenance of amphitheater, gazebo, restroom and tot lot structures, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. A-2 NOTICE OF SPECIAL TAX LIEN RECORDING REQUESTED BY AND AFTER RECORDATION RETURN TO: Secretary Temecula Public Financing Authority 43200 Business Park Drive Temecula, CA 92590 NOTICE OF SPECIAL TAX LIEN Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 53311 et seq. of the California Government Code, the undersigned Secretary of the Temecula Public Financing Authority (the "Authority"), County of Riverside, State of California, hereby gives notice that a lien to secure payment of a special tax which the Board of Directors of the Authority authorized, is hereby imposed. The special tax secured by this lien is authorized to be levied for the purpose of paying principal and interest on bonds, the proceeds of which are being used to finance a portion of the costs of certain public improvements, and costs to defease certain bonds, as well as to pay for certain annual maintenance costs, all as described on Exhibit A attached hereto and hereby made a part hereof. The special tax is authorized to be levied within the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) which has now been officially formed and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is permanently satisfied and cancelled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. The rate, method of apportionment, and manner of collection of the authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. Conditions under which the obligation to pay the special tax may be prepaid in part and permanently satisfied in part are as provided in Exhibit B hereto. Notice is further given that upon the recording of this notice in the office of the County Recorder, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) in accordance with Section 3115.5 of the California Streets and Highways Code. The name(s) of the owner(s) of the real property included within the area of this community facirities district and the assessor's tax parcel(s) numbers of all parcels or any portion thereof which are included within the area of this community facilities district, in each case which are not exempt from the special tax and as they appear on the latest secured assessment roll as of the date of recording of this or as otherwise known to the Authority, are as set forth in Exhibit C attached hereto and hereby made a part hereof. Reference is made to the boundary map of the community facilities district recorded at Book 50 of Maps of Assessment and Community Facilities Districts at Page 53, in the office of the County Recorder for the County of Riverside, State of California, which map is now the final boundary map of the community facilities district. For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Treasurer of the Temecula Public Financing Authority, Temecula Public Financing Authority, 43200 Business Park Drive, Temecula, CA 92590, telephone number (909) 694-6430. Dated: ,2002 By: Susan W. Jones, Secretary, Temecula Public Financing Authority -2- EXHIBIT A TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO, 01-2 (HARVESTON) DESCRIPTION OF FACILITIES AND SERVICES ELIGIBLE TO BE FUNDED BY THE DISTRICT AND PRIOR BONDS TO BE DEFEASED BY THE DISTRICT FACILITIES It is intended that the District will finance $5,150,000 of the costs of any of the following: 1. Offsite Street and Signal Improvements, including design/engineering, right-of- way and construction management related to the following: a. Rustic Glen Drive at Margarita Road b. Margarita Road at South Project Residential c. Winchester Road at Ynez Road d. Winchester Road at Margarita Road e. Winchester Road at Jefferson Ave. f. Winchester Road at 1-15 Southbound Ramp g. Margarita Road, Complete East One Half Widening h. Murrieta Hot Springs Road at Jefferson Avenue - City of Murrieta i. Murrieta Hot Springs Road at Alta Murata Drive - City of Murrieta j. Murrieta Hot Springs Road at Margarita Road o County of Riverside k. Overland Drive at Jefferson Ave. I. Overland Drive at Ynez Road m. Overland Drive at Margarita Road n. Date Street at Ynez Road o. Date St at Service Commercial Access I, No Signal Control Needed p. Date St at North Project Residential Access Road q. Ynez Road at Service Commercial Access II, No Signal Control Needed r. Ynez Road at Service Commercial Access III, No Signal Control Needed s. Ynez Road at Service Commercial Access IV t. Date Street at Margarita Road u. Cherry/Date Streets Interchange Design Project 2. Harveston Backbone Street and Storm Drain Improvements, including design/ engineering and construction management related to the following: ' a. Margarita Road, complete improvements from Date Street to Santa Gertrudis Creek. b. Date Street, median and southerly one-half between Margarita Road and Northerly Entrance Road. c. Date Street, full width, Nodherly Entrance to Ynez Road d. Date Street, full width, Ynez Road to 1-15. e. Ynez Road, full width, existing Ynez Road to Date Street f. Ynez Road, full width, Date Street to northerly city limits. g. Easterly Residential Access Road, full width (Harveston School Road) h. Loop Road, full width, lying adjacent to elementary school. SERVICES Maintenance of an approximately 8.5 acre lake within or in the vicinity of the District, including but not limited to water supply, chemical treatment, workboat, boat house, boat operator, spray fountain, skimming, fish replenishment, repair, and replacement of lights, pumps, motors, p~anting and replacement of reparian plant materials, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. Maintenance of an approximately 7.5 acres of landscaped parkland located within or in the vicinity of the District, including an amphitheater, gazebo, tot lot, restroom trails, benches, picnic tables and lighting. Maintenance services include, but are not limited to, park landscaping and irrigation, fertilizing, and maintenance of amphitheater, gazebo, restroom and tot lot structures, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. PRIOR BONDS It is intended that the District will provide funds necessary to defease the outstanding Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series A, which are secured by a special tax lien on property in the District. OTHER The District may also finance any of the following: 1. Bond related expenses, including underwriters discount, reserve fund, capitalized interest, letter of credit fees and expenses, bond and disclosure counsel fees and expenses, bond remarketing costs, and all other incidental expenses. 2. Administrative fees of the Authority, the City of Temecula and the Bond trustee or fiscal agent related to the District and the Bonds. 3. Reimbursement of costs related to the formation of the District advanced by the Authority, the City of Temecula, any landowner in the District, or any party related to any of the foregoing, as well as reimbursement of any costs advanced by the Authority, the City of Temecula, any landowner in the District or any party related to any of the foregoing, for facilities, fees or other purposes or costs of the District. EXHIBIT B TEMEC;ULA PUBLIC; FINANC;ING AUTHORITY C;OMMUNITY FAC;ILITIE$ DISTRICT NO. 01-2 (HARVESTON) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax shall be levied and collected on all Taxable Property in the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) ("CFD No. 01-2") each Fiscal Year in an amount determined by the CFD Administrator through the application of the appropriate Special Tax based on the procedures described below. All of the real property within CFD No. 01-2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other similar recorded County instrument. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 01-2, including but not limited to: the costs of computing the Special Taxes and of preparing the annual Special Tax collection schedules (whether by the CFD Administrator or designee thereof or both); the costs of collecting the Special Taxes (whether by the Authority, County, City, or otherwise); the costs of remitting the Special Taxes to the Trustee for any Bonds; the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under any Indenture; the costs of the Authority, City or designee in complying with arbitrage rebate and disclosure requirements of applicable federal and State securities laws, the Act and the California Government Code, including property owner inquiries regarding the Special Taxes; the costs associated with the release of funds from any escrow account; the costs of the Authority, City or designee related to an appeal of the Special Tax; and an allocable share of the salaries of the City staff and City overhead expense directly relating to the foregoing. Administrative Expenses shall also include amounts advanced by the City or the Authority for any administrative purposes of CFD No. 01- 2. "Apartment Property" means any Assessor's Parcels of Developed Property for which building permits have been issued for attached residential units which are made available for rental, but not purchase, by the general public. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Assigned Special Tax A or Assigned Special Tax B. "Assigned Special Tax A" means the Special Tax A for each Land Use Class of Developed Property, as determined in accordance with Section C below. "Assigned Special Tax B" means the Special Tax B for each Land Use Class of Developed Property, as determined in accordance with Section C below. "Authority" means the Temecula Public Financing Authority. "Average Interest Rate" means the quotient resulting from the division of (a) the sum of the interest rates borne by the Variable Rate Bonds on each Wednesday of the previous Fiscal Year divided by (b) the number of weeks for which the Variable Rate Bonds were outstanding in such Fiscal Year, as such quotient is calculated by the CFD Administrator. This rate shall be calculated without regard to the number of Variable Rate Bonds that were outstanding during the previous Fiscal Year or at the time of calculation. "Backup Special Tax A" means the Special Tax A applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Board of Directors" means the Board of Directors of the Authority, acting as the legislative body of CFD No. 01-2. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued or incurred by CFD No. 01-2 under the Act. "CFD Administrator'' means the Finance Director of the City, or designee thereof, responsible for determining the Special Tax required, the Average Interest Rate, and various other amounts described herein for providing for the levy and collection of the Special Taxes. "CFD No. 01-2" means Community Facilities District No. 01-2 (Harveston) of the Temecula Public Financing Authority. "City" means the City of Temecula. "Conversion Amount" means the costs of converting Variable Rate Bonds to Fixed Rate Bonds on a Conversion Date, including but not limited to underwriters or purchasers discount, legal fees and expenses, printing costs, Trustee's fees and costs, a charge for City staff related to such conversion, special tax consultant fees and expenses, appraisal fees, financial advisory fees, and other similar expenses. "Conversion Date" means any date on which any Variable Rate Bonds may be converted to Fixed Rate Bonds pursuant to the applicable Indenture for such Bonds. "County" means the County of Riverside. "Developed Property" means all Taxable Property, exclusive of Property Owner Association Property and Public Property, for which (i) a Final Subdivision was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied and (ii) a building permit was issued after January 1, 2001, but prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied. "Extraoi-dinary Special Tax A" means a Special Tax A levied on Other Undeveloped Property as described in Section E. "Final Conversion" means the date on which the last of any Variable Rate Bonds are redeemed or converted to Fixed Rate Bonds, which date shall not be later than the 10th anniversary of the issuance of the Variable Rate Bonds subject to conversion. "Final Subdivision" means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or the recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Fixed Rate Bond(s)" means any Outstanding Bond that pays at a fixed rate of interest until its principal has been fully paid. "Indenture" means the indenture, trust agreement, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the Maximum Special Tax A and Maximum Special Tax B. "Maximum Special Tax A" means the maximum amount of Special Tax A, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel to satisfy the Special Tax A Requirement. "Maximum Special Tax B" means the maximum amount of Special Tax B in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel to satisfy the Special Tax B Requirement. "Non-Residential Floor Area" means the total floor area of a non-residential building(s) located on an Assessor's Parcel, measured from outside wall to outside wall, exclusive of overhangs, porches, patios, carports, or similar spaces attached to the building but generally open on at least two sides, as determined by reference to the building permit(s) issued for that Assessor's Parcel, or if these are not available, as otherwise determined by the CFD Administrator. "One-Time Special Tax A" means a Special Tax A that may be levied on Other Undeveloped Property as described in Section F, below. "Other Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a non-residential use, except for Service Commercial Property. "Other Undeveloped Property" means all Undeveloped Property that is not Service Commercial Property. "Outstanding Bond(s)" means, as of any date, all Bonds previously issued that are outstanding under the applicable Indenture. "Park" means approximately 7.5 acres of landscaped parkland and an 8.5 acre lake located in Planning Area 3 of the Harveston Specific Plan approved on August 28, 2001. "Property Owner Association Property" means any property within the boundaries of CFD No. 01-2 that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder, to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for ali. Assessor's Parcels of Developed Property within CFD No. 01-2. For Undeveloped Property, "Proportionately" means (i) under the second step of the Method of Apportionment in Section D, that the ratio of the actual Special Tax A levy per Acre of Undeveloped Property that is Service Commercial Property to $1,960 and the ratio of the actual Special Tax A levy per Acre of all Other Undeveloped Property to $3,212 is equal for all Assessor's Parcels of Undeveloped Property and that the ratio of the actual Special Tax B levy per Acre of Undeveloped Property will be equal, and (ii) under the third step of the Method of Apportionment in Section D, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax is equal for all Assessor's Parcels of Other Undeveloped Property. "Public Property" means any property within the boundaries of CFD No. 01-2 that is used for rights-of-way or any other purpose and is owned by or irrevocably offered for dedication to the federal government, the State, the County, the City or any other public agency. Once a parcel has been designated as Public Property, it shall retain such status permanently. "Residential Floor Area" means all of the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD Administrator with reference to the building permit(s) issued for such Assessor's Parcel or other appropriate means selected by the CFD Administrator. Once such determination has been made for a parcel, it shall remain fixed in all future Fiscal Years. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling units. "Service Commercial Property" means all property located within the area defined in Exhibit 1 except for Assessor's Parcels developed as Residential Property. "Single Family Property" means all Assessor's Parcels of Residential Property, other than Apartment Property, for which building permits have been issued for detached or attached residential units. "Special Tax" means Special Tax A or Special Tax B. "Special Tax A" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property, Undeveloped Property, Taxable Property Owner Association Property and Taxable Public Property to fund the Special Tax A Requirement, and shall include Special Taxes levied or to be levied under Sections D, E or F, below. "Special Tax B" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcels of Developed Property, or Undeveloped Property, to fund the Special Tax B Requirement, and shall include Special Taxes levied or to be levied under Sections D, E or F, below. "Special Tax A Requirement" means that amount required in any Fiscal Year for CFD No. 01-2 to: (a) (i) pay debt service on all Fixed Rate Bonds for the calendar year that commences in such Fiscal Year, (ii) pay debt service on all Variable Rate Bonds for the calendar year that commences in such Fiscal Year, assuming a constant interest rate of 3.5% for all Variable Rate Bonds for the 2002-03 Fiscal Year levy, and assuming a constant interest rate for each Fiscal Year thereafter equal to the Average Interest Rate for the Fiscal Year immediately preceding that for which the Special Tax A Requirement is being determined; (iii) pay periodic costs on the Bonds, including but not limited to, credit enhancement, liquidity support and rebate payments on the Bonds; (iv) pay Administrative Expenses; and (v) 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 Indenture, as determined by the CFD Administrator. "Special Tax B Requirement" means that amount required in any Fiscal Year for CFD No. 01-2 to pay the estimated costs of providing services, including the salaries of City staff related to and a proportionate share of City overhead costs, for the maintenance of the Park in an amount not to exceed $206,276 for Fiscal Year 2002-2003, increasing by 1% each Fiscal Year there after. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 01-2 that are not exempt from the Special Tax pursuant to law or Section G below. "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section G below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section G below. "Total Floor Area" means for an Assessor's Parcel, the sum of the Residential Floor Area plus the Non-Residential Floor Area. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Property Owner Association Property or Taxable Public Property. "Update Property" means an Assessor's Parcel of Undeveloped Property for which a building permit has been issued, but which has not yet been classified as Developed Property, Taxable Property Owner Association Property or Taxable Public Property. "Variable Rate Bond(s)" means any Outstanding Bond that is not a Fixed Rate Bond. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 01-2 shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C, D, E, and F below. Developed Property shall be assigned to a Land Use Class as specified in Table 1. The Assigned Special Tax for Residential Property shall be based on the Residential FJoor Area located on the Assessor's Parcel, unless it qualifies as Apartment Property, for which the Assigned Special Tax shall be based on the number of dwelling units. The Assigned Special Tax for Service Commercial Property and Other Non-Residential Property shall be based on the Acreage of the Assessor's Parcel, except that any Assessor's Parcel of Service Commercial Property that has become Residential Property shall be assigned to Land Use Classes 1 through 6, and shall no longer be considered Service Commercial Property for Assigned Special Tax or Backup Special Tax A purposes. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax A shall be the greater of (i) the amount derived by application of the Assigned Special Tax A, or (ii) the amount derived by application of the Backup Special Tax A. The Maximum Special Tax B shall be the Assigned Special Tax B. The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be Maximum Special Tax A plus Maximum Special Tax B. b. Assigned Special Tax The Assigned Special Tax for Developed Property in each Fiscal Year for each Land Use Class, starting with Fiscal Year 2002-03 and for each Fiscal Year thereafter, is shown below in Table 1. TABLE 1 ASSIGNED SPECIAL TAX AMOUNTS FOR DEVELOPED PROPERTY FOR FISCAL YEAR 2002-03 COMMUNITY FACILITIES DISTRICT NO. 01-2 Combined Land Assigned Assigned Assigned Use Special Tax A Special Tax B Special Tax Class Description Residential Floor Per Uni*JAcre Per Unit/Acre Per Unit/Acre Area 1 Single Family 3,050 or more square $1,574 per unit $107 per unit $1,681 per unit Property feet 2 Single Family 2,650 or more, but less $1,280 per unit $107 per unit $1,387 per unit Property than 3,050 square feet 3 Single Family 2,250 or more, but less $1,146 per unit $107 per unit $1,253 per unit Property than 2,650 square feet 4 Single Family 1,850 or more, but less $892 per unit $107 per unit $999 per unit Property than 2,250 square feet 5 Single Family <1,850 square feet $483 per unit $107 per unit $590 per unit Property 6 Apartment Property Not Applicable $200 per unit $107 per unit $307 per unit 7 Service Commercial Property* Not Applicable $1,960 per $0 per Acre $1,960 per Acre Acre 8 Other Non- Residential Property Not Applicable $6,126 per $685 per Acre $6,811 per Acre Acre *Notwithstanding Table 1, any residential development occurrin on Service Commercial Property shall be taxed at the rates listed under Land Use Classes 1-6, as applicable. For each Fiscal Year following Fiscal Year 2002-2003, the tax rates for Assigned Special Tax B stated above shall increase by an amount equal to 1.00% of the maximum tax rates in effect for the prior Fiscal Year. c. Backup Special Tax A The Backup Special Tax A for Developed Property in each Fiscal Year, starting with Fiscal Year 2002-2003 and for each Fiscal Year thereafter, shall be $6,126 per Acre for Residential Property and Other Non-Residential Property, and $1,960 per Acre for Service Commercial Property. d. Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Assigned Special Tax levied on an Assessor's Parcel shall be the sum of the Assigned Special Tax levies for all Land Use Classes located on that Assessor's Parcel. The Backup Special Tax A levied on an Assessor's Parcel shall be the sum of the Backup Special Tax A levies that can be imposed on all Land Use Classes located on that Assessor's Parcel. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that can be imposed on all Land Use Classes located on that Assessor's Parcel. For purposes of calculating the Backup Special Tax A (but not the Assigned Special Tax A) for each Land Use Class under such circumstances, the Acreage assigned to each Land Use Class shall be based on the proportion of Residential Floor Area or Non- Residential Floor Area that is built for each Land Use Class as compared with the Total Floor Area built on the Assessor's Parcel. All allocations made under this section shall be determined by the CFD Administrator, and all such allocations shall be final, 2. Undeveloped Property, Taxable Property Owner Association Property and Taxable Public Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2002-03 and future Fiscal Years for Undeveloped Property that is Service Commercial Property shall be $1,960 per Acre. The Maximum Special Tax for Fiscal Year 2002-03 and future Fiscal Years for Taxable Property Owner Association Property and Taxable Public Property shall be $6,126 per Acre. The Maximum Special Tax A for Fiscal Year 2002-03 and future Fiscal Years for Other Undeveloped Property shall be $6,126 per Acre plus any Extraordinary Special Tax A or One-Time Special Tax A that may be applicable. The Maximum Special Tax B for Other Undeveloped Property shall be $685 per Acre for Fiscal Year 2002-2003 and shall increase by an amount equal to 1.00% of the maximum tax rates in effect for the prior Fiscal Year. The Maximum Special Tax for each Assessor's Parcel classified as Other Undeveloped Property, shall be Maximum Special Tax A plus Maximum Special Tax B. b. Extraordinary Special Tax A and One-Time Special Tax A The Extraordinary Special Tax A and the One-Time Special Tax A, as described in Sections E and F below, are not limited by specific maximum levels, but instead may be levied at whatever levels are required to meet the objectives of Sections E and F. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the CFD Administrator shall levy the Special Tax as follows: First: Special Tax A shall be levied on each Assessor's Parcel of Developed Property at 100% of the applicable Assigned Special Tax A for each Fiscal Year to and including the Fiscal Year in which Final Conversion occurs, irrespective of the Special Tax A Requirement, in order to pay amounts described in the definition of the "Special Tax A Requirement," as well as to accumulate funds to maintain an interest rate reserve account with respect to Variable Rate Bonds established under the Indenture at a level specified in the Indenture, to pay Conversion Amounts and for the redemption of Variable Rate Bonds under the Indenture. For each subsequent Fiscal Year, Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax A as needed to satisfy the Special Tax A Requirement. Special Tax B shall be levied Proportionately B-8 on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax B as needed to satisfy the Special Tax B Requirement; . Second: If additional monies are needed to satisfy the Special Tax A Requirement after the first step has been completed, Special Tax A shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property that is Service Commercial Property at up to $1,960 per Acre and Proportionately on each Assessor's Parcel of Other Undeveloped Property at up to $3,212 per Acre and if additional monies are needed to satisfy the Special Tax B Requirement after the first step has been completed, Special Tax B shall be levied Propodionately on each Assessor's Parcel of Other Undeveloped Property at up to 100% of the applicable Assigned Special Tax B; Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, Special Tax A shall be levied Proportionately on each Assessor's Parcel of Other Undeveloped Property at up to $6,961 per Acre; Fourth: If additional monies are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then the levy of Special Tax A on each Assessor's Parcel of Developed Property whose Maximum Special Tax A is determined through the application of the Backup Special Tax A shall be increased Proportionately from the Assigned Special Tax A up to the Maximum Special Tax A for each such Assessor's Parcel; Fifth: If additional monies are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property up to the Maximum Special Tax A for Taxable Property Owner Association Property; and Sixth: If additional monies are needed to satisfy the Special Tax A Requirement after the first five steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property up to the Maximum Special Tax A for Taxable Public Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property used for private residential purposes be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 01-2. E. EXTRAORDINARY SPECIAL TAX A If at any time during a Fiscal Year the interest rate on Variable Rate Bonds exceeds the rate described in clause (a)(ii) of the definition of "Special Tax A Requirement" that was utilized to determine that Fiscal Year's Special Tax A Requirement, it may be necessary to levy an Extraordinary Special Tax A on all Other Undeveloped Property to cover any shortfall in funds available to pay interest due on Variable Rate Bonds in such Fiscal Year, Three business days prior to any interest payment date for Variable Rate Bonds, if sufficient funds are not available in a debt service or interest rate reserve account for the payment of Variable Rate Bonds under the Indenture, the CFD Administrator shall levy Special Taxes Proportionately on Assessor's Parcels classified for such Fiscal Year as Other Undeveloped Property in an aggregated amount equal to the amount of the insufficiency, and the payment of Special Taxes so levied shall be due and payable on (and will be delinquent if not paid by) the day prior to such interest payment date. Special Taxes levied under Section E shall be levied by means of direct billing to the affected property owners. F. ONE-TIME SPECIAL TAX A In any Fiscal Year up to and including the Fiscal Year in which the Final Conversion occurs, there shall be levied on each Assessor's Pamel classified in such Fiscal Year as Other Undeveloped Property a One-Time Special Tax A in an amount determined by the CFD Administrator as follows: (i) three business days prior to Final Conversion, in an amount equal to the cost of redemption of any Variable Rate Bonds that are not expected to be converted to Fixed Rate Bonds on the Final Conversion, and (ii) three business days prior to any Conversion Date in an amount equal to (a) the Conversion Amount, less (b) any amounts then available for payment of the costs of conversion of Variable Rate Bonds to Fixed Rate Bonds or such Conversion Date in an account established for such purpose under the Indenture. Special Taxes levied under this Section F shall be levied by means of direct billing to the affected property owner(s). Payment of Special Taxes so levied shall be due no later than the date of Final Conversion or the Conversion Date to which the levy pertains. G. EXEMPTIONS No Special Tax shall be levied on up to 16.5 Acres of Property Owner Association Property and on up to 93.3 Acres of Public Property. The CFD Administrator will assign tax-exempt status to Assessor's Parcels in the chronological order in which such Parcels are known to the CFD Administrator to become Properly Owner Association Property or Public Property. Once an Assessor's Parcel has been classified as Public Property, its tax-exempt status will be permanent, independent of its future uses. All Assessor's Parcels that have fully prepaid their Special Tax A lien pursuant to Section J are exempt from future Special Tax A levies, but shall be subject to Special Tax B levies. Property Owner Association Property or Public Property that is not exempt from Special Tax A levies under this section shall be subject to the levy of Special Tax A and shall be taxed Proportionately as part of the fifth and sixth steps, respectively, in Section D above, at up to 100% of the applicable Maximum Special Tax A for Taxable Property Owner Association Property or Taxable Public Property. H. REVIEW AND APPEAL Any taxpayer may file a written appeal of the Special Tax A or Special Tax B levied on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with B-lO the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant's property. No refunds of previously paid Special Taxes shall be made. I. MANNER OF COLLECTION The Special Tax as levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 01-2 or as otherwise determined appropriate by the CFD Administrator. For purposes of Sections E and F, the CFD Administrator shall directly bill the affected property owners for the Extraordinary Special Tax A levies and One-Time Special Tax A levies, unless an alternative mechanism has been determined by the CFD Administrator. J. PREPAYMENT OF SPECIAL TAX A The following definition applies to Section J. "Outstanding Prepayment Bonds" means, as of any date, all Bonds previously issued that are anticipated by the CFD Administrator to be Outstanding under the applicable Indenture immediately after the first principal payment date for such Bonds following the then current Fiscal Year. 1. Prepayment in Full - Special Tax A The Special Tax A obligation described in Section D above with respect to any Assessor's Parcel of Developed Property, Update Property, or Undeveloped Property that is Service Commercial Property may be fully prepaid, except that a Special Tax B shall be levied on such Assessor's Parcel after the prepayment has occurred. In addition, the Special Tax A obligation of any Assessor's Parcel of Taxable Public Property and/or Taxable Property Owner Association Property may be prepaid, without a Special Tax B being levied thereafter. A prepayment may be made on an Assessor's Parcel only if there are no delinquent Special Tax levies with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intedding to prepay the Special Tax A obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel.. The CFD Administrator may charge the Assessor's Parcel owner a reasonable fee for providing these figures, which must be paid by the owner of the Assessor's Parcel prior to the calculation of the prepayment amount. Prepayment must be made not less than 15 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The Prepayment Amount (defined below) for any Assessor's Parcel of Taxable Public Property may be determined by the CFD Administrator as authorized under Sections 53317.3 and 53317.5 of the Act. However, no Special Tax A prepayment for any Assessor's Parcel of Taxable Public Property shall be allowed unless the amount of Assigned Special Tax A levies that may be imposed on Taxable Property within CFD No. 01-2 after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. B-11 The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount shall be calculated as follows: Paragraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property and Service Commercial Property that is Developed Property, compute the Assigned Special Tax A and Backup Special Tax A applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Service Commercial Property that are Undeveloped Property, compute the Maximum Special Tax A for the Assessor's Parcel to be repaid. For Assessor's Parcels of Undeveloped Property which are also classified as Update Property, compute the Assigned Special Tax A and Backup Special Tax A for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. 3. (a) Divide the Assigned Special Tax A or Maximum Special Tax A computed pursuant to paragraph 2 by the estimated Assigned Special Tax A levies for all of CFD No. 01-2 based on the Developed Property Special Tax A levies which could be imposed in the current Fiscal Year on all expected development in CFD No. 01-2, excluding any Assessor's Parcels which have been prepaid; and (b) Divide the Backup Special Tax A computed pursuant to paragraph 2 by the estimated Backup Special Tax A levies at buildout for CFD No. 01-2 using the Backup Special Tax A amounts for the current Fiscal Year, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Outstanding Prepayment Bonds, and (if determined necessary by the CFD Administrator to effect the redemption of Bonds with such prepayment) round up to the nearest integral multiple of $5,000 to compute the amount of Outstanding Prepayment Bonds to be retired and prepaid (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Prepayment Bonds to be redeemed (the "Redemption Premium"). 6. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Prepayment Bonds. Under a variable- B-12 rate bond scenario, the amount needed to pay interest on the Bond Redemption Amount shall be determined by the CFD Administrator. 7. Determine the amount of the Special Tax A levied on the Assessor's Parcel in the current Fiscal Year which, has not yet been paid. 8. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Prepayment Bonds to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount computed pursuant to paragraph 8 (the "Defeasance Amount"). 10. Verify the administrative fees and expenses of CFD No. 01-2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 11. If bond reserve funds for the Outstanding Prepayment Bonds, if any, are anticipated to be at or above 100% of the bond reserve requirement (as specified in the Indenture) immediately after the first principal payment date in the next Fiscal Year, the reserve fund credit shall equal the expected reduction in the bond reserve requirement, if any, associated with the redemption of Outstanding Prepayment Bonds as a result of the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if bond reserve funds are anticipated to be below 100% of the bond reserve requirement immediately after the first principal payment date in the next Fiscal Year. 12. The Special Tax A prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 9 and 10, less the amounts computed pursuant to paragraph 11 (the "Prepayment Amount"). 13. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, and 9 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Prepayment Bonds or make debt service payments. The amount computed pursuant to paragraph 10 shall be retained by CFI) No. 01-2. The Prepayment Amount may. be insufficient to redeem an integral multiple of $5,000 of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Bonds. As a result of the payment of the current Fiscal Year's Special Tax A levy as determined under paragraph 7 (above), the CFD Administrator shall remove the Special Tax A from the current Fiscal Year's levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Board of Directors shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax A and the release of the Special Tax A lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax A shall cease. However, Special Tax B shall still be levied on such Assessor's Parcels. B-13 Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property within CFD No. 01- 2 after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Qutstanding Bonds. 2. Prepayment in Part - Special Tax A The Maximum Special Tax A on an Assessor's Parcel of Developed Property, Update Property or Service Commercial Property may also be partially prepaid. The amount of the prepayment shall be calculated as in Section J.1; except that a partial prepayment shall be calculated according to the following formula (provided that the partial prepayment must in any event be sufficient to, in addition to payment of all other components of the Prepayment Amount, redeem Bonds in increments of $5,000): PP=PE xF These terms have the following meaning: PP = the partial prepayment PE -- the Prepayment Amount calculated according to Section J.1 F -- the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the Maximum Special Tax A. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Special Tax A shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Special Tax A, (ii) the percentage by which the Maximum Special Tax A shall be prepaid, and (iii) the'company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Special Tax A for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. Such fee must be paid prior to the calculation of the Prepayment Amount. With respect to any Assessor's Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the funds remitted to it according to Paragraph 13 of Section J.1. and (ii) indicate in the records of CFD No. 01-2 that there has been a partial prepayment of the Maximum Special Tax A and that a portion of the Maximum Special Tax A equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax A shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. Special Tax B shall also be levied on such Assessor's Parcel. K. TERM OF SPECIAL TAX Special Tax A shall be levied for a period not to exceed 50 Fiscal Years, commencing with Fiscal Year 2002-03. All Assessor's Parcels of Taxable Property within CFD No. 01-2 shall continue to be subject to the levy and collection of the Special Tax to satisfy Special Tax B Requirement as long as the City operates and maintains the Park. B-14 EXHIBIT 1 LEGAL DESCRIPTION SERVICE COMMERCIAL PROPERTY That certain parcel of land situated in the City of Temecula, County of Riverside, State of California, being those portions of Lots 109, 110, 120 and 121 (together with those portions of vacated Date Street, Monroe Avenue and Jackson Avenue adjoining said lots), all as shown on a Map of the Temecula Land and Water Company filed in Book 8, Page 359 of Maps, Records of San Diego County, California, together with a portion of Parcel 4 of Parcel Map No. 19677 (together with that portion of Ynez Road adjoining said Parcel 4), all as shown on a map filed in Book 135, Pages 85 and 86 of Parcel Maps, Records of Riverside County, California, described as a whole as follows: BEGINNING at the most northerly corner of said Lot 121, said corner being a point on the centerline of said Jackson Avenue; thence along said centerline South 41"o38'09'' East 1290.73 feet to the most northerly corner of said Lot 120; thence continuing along said centerline South 42~o14'33'' East 1290.79 feet to the most easterly corner of said Lot 120; thence continuing along said centerline South 41~52'47" East 794.56 feet to the centerline of said Ynez Road; thence along said centerline of Ynez Road South 300o07'20'' West 432.14 feet to the beginning of a tangent curve concave southeasterly and having a radius of 1675.00 feet; thence along said curve southwesterly 699.71 feet through a central angle of 23~56'04" to the easterly prolongation of a course in the southeasterly line of said Parcel 4 shown as "North 83.o48'37'' West" on said Parcel Map; thence radically from said curve, along said course and prolongation North 83~o48'44'' West 142.82 feet to an angle point in said southeasterly line; thence along said southeasterly line South 63oo31'52" West 962.68 feet to the most southerly corner of said Parcel 4 and a point in the northeasterly line of Interstate 215; thence along said northeasterly line through the following courses: North 29-26'02" West 376.97 feet; thence North 300o35'46'' West 450.40 feet; thence North 28oo41'12" West 758.78 feet; thence North 180040'57'' West 346.24 feet; thence North 28~39'30" West 199.91 feet; thence North 37oo45'11" West 253.17 feet; B-15 thence North 29,058'20'' West 449.97 feet; thence North 21'~49'02'' West 251.95 feet; thence North 28~o24'39'' West 519.02 feet to the northwesterly line of said Lot 121; thence along said northwesterly line North 48~10'42" East 1190.56 feet to the POINT OF BEGINNING. CONTAINING: 135.24 Acres, more or less. SUBJECT To all covenants, rights, rights-of-way and easements of record. B-16 EXHIBIT C TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) ASSESSOR'S PARCEL NUMBERS AND OWNERS OF LAND WITHIN THE DISTRICT County Assessor's Parcel Numbers Owner of Record of Parcels 910-100-008-9 Lennar Homes of California, Inc. 910-110-013-4 c/o Lennar Communities 910-110-027-7 6529 Riverside Avenue, Suite 133 910-1 lO-076-1 Riverside, CA 92506 910-120-008-1 916-040-007-5 919-160-004-3 916-170-003-3 916-170-004-4 916-170-005-5 916-170-006-6 916-170-007-7 916-170-008-8 916-170-010-9 916-170-011-0 916-180-002-3'* 916-180-008-9 916-180-009-0 916-180-012-2 910-100-007-8 Winchester Hills I, LLC 910-110-015-6 cio The Stephen A. Bieri Company, Inc. 910-110-020-0 417 Carmel Street, Suite 200 910-110-021-1 San Marcos, CA 92069-4368 910-240-001 -§* 910-261-001 ~0 910-261-002-1 * Note: this APN has been reassigned to 910-380-001-8. ** Mail name is c/o Herbert Samuels, however the Assessee is Lennar Homes of California, Inc. ITEM 15 APPEOVA-g,~/~ CITYATTORNEYT~/J~ DIRECTOR OFFINANCE~/zL-.- CITY MANAGER ~' CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Herman D. Parker, Director of Community Services~. DATE: March 26, 2002 SUBJECT: Environmental Review of the Temecula Public Library PREPARED BY: ~-' Phyllis L. Ruse, Deputy Director of Community Services RECOMMENDATION: That the City Council adopt a Mitigated Negative Declaration, including the mitigation monitoring program attached thereto, Dr the Temecula Public Library project. BACKGROUND: On January4, 2002, the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 regulations became effective. Staff is working to prepare our grant application in accordance with the regulations and be ready to submit our application bythe June 14, 2002 deadline. One of the grant requirements is the inclusion of the completed environmental review documents, including the stamped Notice of Determination (NOD) from the County Recorder's Office. Community Development staff completed the Environmental Review and the document has completed the 30-day circulation period. The noticing requirements for the public hearing have been fulfilled by posting the project site, printing a notice in the newspaper and a mailing to property owners within 600 feet of the site. Adoption of the Negative Declaration at this time will provide sufficient time for the County Recorder to post the NOD, receive our stamped copy and include it as a part of our application packet. FISCAL IMPACT: Approval of this item will have no fiscal impact on the project. R:\RUSEP~AGENDAS\Library CEOA.CC.doc City of Temecula Planning Department Notice of Proposed Negative Declaration PROJECT: City of Temecula Library, EA-086 APPLICANT: City of Temecula LOCATION: South of Pauba Road, west of Fire Station 84, between Margarita and Ynez Roads, DESCRIPTION: The construction of a 33,300 square foot library on an approximately 3-acre site which has previously been rough graded; however, additional grading including 17,500 Cubic Yards of cut and 11,400 Cubic Yards of fill will be necessary to reduce the pad elevation and increase the pad area. The facility will include 135 parking spaces and a community multi-purpose room with kitchen. It is expected that the hours of oDeration will be similar to the current librar~ facility'. The City of Temecula intends to adopt a Negative Declaration for the project described above. Based upon the information contained in the attached Initial Environmental Study and pursuant to the requirements of the California Environmental Quality Act (CEQA); it has been determined that this project as proposed, revised or mitigated will not have a significant impact upon the environment. As a result, the City Council intends to adopt a Negative Declaration for this project. The mitigation measures required to reduce or mitigate the impacts of this project on the environment are included in the project design and/or the Mitigation Monitoring Program which is attached to this Notice and will be included as part of the Negative Declaration for this project. The Comment Period for this proposed Negative Declaration is February 14, 2002 to March 18, 2002. Written comments and responses to this notice should be addressed to the contact person listed below at the following address: City of Temecula, P.O. Box 9033, Temecula, CA 92589-9033. City Hall is located at 43200 Business Park Drive. The public notice of the intent to adopt this Negative Declaration is provided through: X~_ The Local Newspaper. _ Posting the Site. _ Notice to Adjacent Property Owners. If you need additional information or have any questions concerning this project, please contact (Saied. Naaseh, Project Planner at (909) 694-6400. Prepared by: (Signature) (Name and Title) Saied Naaseh, Proiect Planner RAEA~EA86hNOTICE OF PROPOSED NEGATIVE DECLARATION.doc I City of Temecula P.O. Box 9033, Temecula, CA 92589-9033 Environmental Checklist Project Title Temecula Library (EA-086) Lead Agency Name and Address City of Temecula P.O. Box 9033, Temecula, CA 92589-9033 Contact Person and Phone Number Saied Naaseh, Project Planner (909) 694-6400 Project Location South of the Pauba Road, west of Fire Station 84, between Margarita and Ynez Roads, in the City of Temecula Project Sponsor's Name and Address City of Temecula 43200 Business Park Drive ! Temecula, CA 92590 General Plan Designation Public Institutional Zoning Public Institutional Description of Project The construction of a 33,300 square foot library on an approximately 3-acre site which has previously been rough graded; however, additional grading including 17,500 Cubic Yards of cut and 11,400 Cubic Yards of fill will be necessary to reduce the pad elevation and increase the pad area. The facility will include 135 parking spaces and a community multi-purpose room with kitchen. It is expected that the hours of operation will be similar to the current library facility. Surrounding Land Uses and Setting The site is located on the north side of Pauba Road on a ridgeline overlooking the Rancho California Sports Park. Fire Station 83 is to the west and existing and future large lot residential uses are located south of Pauba Road on the other side of the ridgeline. Other public agencies whose approval N/A is required R:\EA\EA86~Iraft initial study.docR:\EA~A86~raft initial study.doc 1 Environmental Factors Potentially Affected The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. Land Use Planning Hazards Population and Housing Noise Geologic Problems Public Services Water Utilities and Service Systems i Air Quality Aesthetics Transportation/Circulation Cultural Resources Biological Resources Recreation Energy and Mineral Resources Mandatory Findings of Significance ,/ None Determination (To be completed by the lead agency) On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant on the environment, and a NEGATIVE DECLARATION will be prepared I find that although the proposed project could have a significant effect on the environment, there will not · / be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect 1 ) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "potentially significant impact" or "potentially significant unless mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Signature Date Saied Naaseh Printed name For R:\EA\EA86~draft initial study.docR:\EA',EA86~draft initial study.doc 2 1. Land Use and Planning. Would the project: Potentia~Jy Potentially Significant Unless -Less Than Significant Mitigation Significant NO Issues and Supportin~ Information Sources Impact Incorporated Impact Impact a. Physically divide an established community? b. Conflict with applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigation an environmental effect? c. ;Conflict with any applicable habitat conservation plan or natural community conservation plan? Comments: 1 .a.b The location of the proposed library on this location is consistent with the City General Plan and zoning designation of Public Institutional and all its applicable requirements. The project is contiguous to the Rancho California Sports Park in an area identified for public uses and will not divide any neighborhoods within the City. As a result, no significant impacts are expected and no specific mitigation measures are necessary. 1.¢ The proposed project will occur in a region where three identified endangered species have been identified. The Stephens Kangaroo Rat, California Gnatcatcher, and Quino Checkerspot Buttedly have all historically occurred in the vicinity of this project. Appropriately focused Biology Study Reports were submitted to determine if endangered species occupied any portion of the site. A permitted and qualified biologist prepared the Studies. The results of these studies indicated the following: i. The site topography and plant community did not support and did not contain any Stephens Kangaroo Rats. As a result, no further mitigation is required. ii. According to the study, the site lacks the vegetation that supports California Gnatcatchers. As a result, no mitigation is required. iii. The site also did not contain the prerequisite habitat for the Quino Checkerspot Buttedly. As a result, no mitigation is required. Based upon the results of these studies, no impacts to any applicable habitat conservation or natural community conservation plans were identified. (Sources: 4, 5, 6, and 7.) R:\EA\EA86~Iraff initial st udy.docR:\EA~EA86',d raft initial study.doc 3 2. POPULATION AND HOUSING. Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant NO Issues and Suppo~n.~ Information Sources impact Incorporated Impact Impact a. Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension I of roads or other infrastructure)? b. Displace substantial numbers of existing housing, ,,' necessitating the construction of replacement housing elsewhere? c. Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? Comments: 2.all The proposed project site is currently vacant it will not displace any existing housing or people. The project is not expected to induce additional growth or development in the City since it is being developed in an area with existing infrastructure and will be servicing an existing need within the community. As a result, to significant impacts are expected and no specific mitigation measures are necessary. 3. GEOLOGY AND SOILS. Would the project? Potentially Potentially Significant Unless Less Than Significant Mitigation ' Significant NO Issues and Supportin~ Information Sources Impact Incorporated Impact Impact a. Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on ,,' the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? iii)Seismic-related ground failure, including liquefaction? iv) Landslides? v' b. Result in substantial soil erosion or the loss of topsoil? c. Be located on a geologic unit or soil that is unstable, or ,,' that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d. Be located on expansive soil, as defined in Table 1801-B ,,' of the Uniform Building Code (1994), creating substantial risks to life or property? e. Have soil incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? R:\EA\EA86~rafi initial st u dy.d OcR:\EA'~EA8b'~d raft initial study.doc 4 Comments: The site is suitable, from a geotechnical standpoint for the construction of the proposed library provided the recommendations presented in the report and subsequent reports are considered in the planning, design, and construction. Therefore, no significant impacts are anticipated. 3.a.i. The subject site is not located within a currently designated State of California Earthquake Fault Zone. The nearest known active fault designated as the State of California Earthquake Fault Zone and capable of generating significant ground motion at the site is the Elsinora-Temecula Fault. This is located approximately 1.7 miles southwest of this site. Therefore, no significant impacts are anticipated. 3.a.ii. The Elsinore-Temecula Fault is considered to have the greatest potentional to have an impact at the project site. Based on a deterministic seismic hazard analysis, the project site may experience a mean peak horizontal ground acceleration on the order of 0.82g, where g is the acceleration due to gravity, due to a maximum credible earthquake of moment magnitude of 6.8 associated with the Elsinore Fault. A site-specific probabilistic seismic hazard analysis indicates that a mean peak horizontal ground acceleration of 0.80g has a 10 percent probability of exceedance in 50 years. Therefore, no significant impacts are anticipated. 3.a.iii. The project site is not considered to be susceptible to liquefaction during earthquakes generated by the movement of nearby faults. Therefore, no significant impacts are anticipated. 3.a.iv. and 3.c. The potential of seismic hazards due to the secondary effects of earthquakes including seismically induced ground settlement and differential settlement, lateral spreading, landslides, earthquake induced flooding, is considered to be very Iow to iow. Based on the site location, tsumamis or seiches do not pose a hazard. Therefore, no significant impacts are anticipated. (Sources: 1,2, and 8) 3.b. and d. The undocumented fills and Pauba Formation (bedrock) underlie the project site. Therefore, they are not expansive soils. The thickness of the undocumented fills range from 0 to 9.0 feet. Earth material s at the site should be excavatable with conventional heavy-duty earth moving equipment. The site will be developed and landscaped; therefore no soil erosion is expected. Therefore, no significant impacts are anticipated. The proposed project will be connected to sewer; therefore, no significant impacts are anticipated. R:\EA~EA86~drafl initial study.docR:\EA\EA8bAdraft initial study.doc 5 4. HYDROLOGY AND WATER QUALITY. Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No issues and Supportin~ information Sources Impact Incorporated Impact impact a. Violate any water quality standards or waste discharge requirements? b. Substantially deplete groundwater supplies or interfere ,/ substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c. Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? d. Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? e. Create or contribute runoff water which would exceed the ,/ capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff? f. Otherwise substantially degrade water quality? g. Place housing within a lO0-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h. Place within a 100-year flood hazard area structures ,/ which would impede or redirect flood flows? i. Expose people or structures to a significant risk of loss, ~njury or death involving flooding, including flooding as a result of the failure of a levee or dam? j. Inundation by seiche, tsunami, or mudflow? Comments: 4.a. The proposed project will not violate any water quality standards or waste discharge requirements. The project is required to comply with the requirements of the National Pollutant Discharge Elimination System (NPDES) permit from the State Water Resoumes Control Board. No grading shall be permitted until an NPDES Notice of Intent has been filed or the project is shown to be exempt. By complying with the NPDES requirements, any potential impacts can be mitigated to a level less than significant. With mitigation, a less than significant impact is anticipated as a result of this project. 4.b.f. The proposed project will not substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level. The project will not have an affect on the quantity and quality of ground waters, either through direct additions or withdrawals or through interception of an aquifer by cuts or R:\EA\EA86\draft initial study.docR:\EA\EA86~draff initial study.doc 6 excavations or throug~dbstantial loss of groundwater rechar~capability. Further, construction on the site will not be at depths sufficient to have a significant impact on ground waters or aquifer volume. No impacts are anticipated as a result of this project. 4.c.d. The proposed project will not substantially alter the existing drainage pattern of the site or area in a manner which would result in substantial erosion or siltation and/or flooding on- or off-site. Some changes to adsorption rates, drainage patterns and the rate and amount of surface runoff is expected whenever development occurs on previously permeable ground. Previously permeable ground will be rendered impervious by construction of buildings, accompanying hardscape and driveways. While absorption rates and sun"ace i'unoff will change, potential impacts shall be mitigated through site design.. Drainage conveyances will be required for the project to safely and adequately handle runoff that is created. The proposed project would have no impact on the existing storm drain facilities. Therefore, a less than significant impact is associated with this project. 4.e. The proposed project is not anticipated to create or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff. The capacity and storm water drainage systems will not be adversely affected. The proposed project will accommodate the drainage created as a result of the development of the subject site and not impact surrounding properties. Therefore, a less than significant impact is associated with this project. 4.g-h. The proposed project will not expose people or property to water related hazards such as flooding. According to the Federal Emergency Management Agency (FEMA), the project site is located outside the limits of the 500-year (Zone X). Therefore, a less than significant impact is anticipated as a result of this project. 4. I,j. The proposed project site will not expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam. There is no dam or levee near the surrounding subject site that would result in such damage. The project site is not subject to inundation by sieche, tsunami, or mudflow as these events are not known to happen in this region. No impacts are anticipated as a result of this project. R:\EA~._A86\draft initial study.docR:\EA\EA86~draft initial study.doc 7 5. AIR QUALITY. Where available, the significance criteria established by the applicable quality management or air pollution control district may be relied upon to make the following determinations. Would the project: PotentiallySignificant Unless Less Than SignificantMitigation Significant NO Issues and Supporting Information Sources Impact Incorporated Impact Impact a. Conflict with or obstruct implementation of the applicable v' air quality plan? b. Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c. Result in a cumulatively considerable net increase of any v' criteria pollutant for which the project region is non- attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors? d. Expose sensitive receptors to substantial pollutant ,-' concentrations? e. Create objectionable odors affecting a substantial number of people? Comments: 5.all The environmental impacts associated with air quality impacts of the proposed project are consistent with the impacts considered within the approved General Plan and Environmental Impact Report. As a result, no additional impacts have been identified and no additional mitigation measures are necessary. (Sources: 1, 2 and 7) 6. TRANSPORTATION/TRAFFIC. Would the project: Potentially PotentiallySignificant Unless Less Than SignificantMifigafion Significant No Issues and Supporting information Sources Impact Incorporated Impact Impact a. Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections? b. Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? c. Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d. Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e. Result in inadequate emergency access? ,,' f. Result in inadequate parking capacity? ,,' g. Conflict with adopted policies, plans, or programs ,,' supporting alternative transportation (e.g., bus turnouts, bicycle racks? R:~E.A\EA8b'~draft initial study.docR:\EA~EA86~draff initial study.doc 8 Comments: 6.a,b. The project consists of a 33,300 square foot public library building and will generate approximately 1,782 trips per day. The environmental impacts including cumulative associated with traffic and circulation are consistent with the impacts considered with the General Plan Environmental Impact Report as long as the proposed improvements for Pauba Road are completed prior to the operation of the library. With this mitigation measure in place, a less than significant impact is anticipated as a result of the proposed project. 6.c.d. The proposed development of this property will not result in a change in air traffic patterns by increasing the traffic levels in the vicinity. The site is not within the French Valley Airport's flight overlay district. The conceptual design of the project will not pose a threat to the health, safety, and welfare of the people utilizing the roads in the vicinity of the project since no sharp curves or dangerous intersections are proposed. No impacts are anticipated as a result of this project. 6oeo The proposed project will not result in inadequate emergency access or access to nearby uses. The proposed plans for the project have been reviewed for compliance with current City standards and adequate emergency access. No impacts are anticipated as a result of this project. The proposed development complies with the Development Code parking requirements for 110 parking spaces. The proposed plans provide 133 parking spaces on site. Therefore, with the proposed design, no significant impacts are anticipated as a result of this project. 6og. As conceptually designed, the proposed project does not conflict with adopted policies, plans, or programs supporting alternative transportation. The Riverside Transit Agency (RTA) is responsible to monitor public transportation needs for the area and they will provide services to the areas with a need for public transportation. Existing RTA bus routes serve the general area, however, existing RTA bus routes do not currently pass-by the project site. Future bus routes and on-street bus stop will be provided as determined necessary by the RTA prior to issuance of the occupancy permit. Therefore, no impacts are anticipated as a result of this project. (Sources: land 2) R;~,..A\EA86',draft initial st u dy.docR :\EA',EA86'~d raft initial study.doc 9 7. BIOLOGICAL RESOURCES: Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No issues and Supporting] Information Sources Impact Incorporated Impact Impact a. Have a substantial adverse effect, either directly or ,/ through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b. Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? c. Have a substantial adverse effect of federally protected ,,' wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filing, hydrological interruption, or other means? d. Interfere substantially with the movement of any native ,,' resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e. Conflict with any local policies or ordinances protecting ,,' biological resources, such as a tree preservation policy or ordinance? f. Conflict with the provisions of an adopted habitat ,/ Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? Comments: 7.all The proposed project will occur in a region where three identified endangered species have been identified. The Stephens Kangaroo Rat, California Gnatcatcher, and Quino Checkersopt Butterfly have all historically occurred in the general vicinity of this project. Appropriately focused Biology Study Reports were prepared by for each of these three species by a permitted and qualified biologist on July 17, 1999 to determine if any endangered species occupied any portion of the site. prepared the Studies. A subsequent update to these studies was prepared on November 15, 2001 which reconfirmed the findings of the original studies. The results of these studies indicated the following: i. The site topography and plant community does not support and the site did not contain any Stephens Kangaroo Rats (SKR). As a result, no further mitigation is required. ii. According to the Focused Coastal Gnatcatcher Study, the coastal sage scrub habitat on the site is relatively sparse and isolated. In addition, the survey did not identify California Gnatcatchers on the property. As a result, no impacts are expected to occur and no mitigation is required. R:\EAYEA86~Iraft initial study.d(x;R:\EA\EA86~raff initial study,doc 10 iii. The study that the site does not contain the ' uisite habitat necessary to support the Quino Checkerspot Butterfly. According to the habitat assessment standards for the Quino Checkerspot Butterfly, the lack of habitat precludes the presence of the species. As a result, no impacts could occur and no mitigation is required. Because no endangered or sensitive species have been identified on this disturbed and relatively isolated site, no further analysis or mitigation is required. (Sources 1, 2, 4, 5, 6, and 7) 8. MINERAL RESOURCES. Would the project: PotentiaIJy Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting information Sources ~rnpact Incorporated Impact Impact a. Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b. Result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? Comments: 8.all The proposed project will not result in the loss of available, known mineral resources or in the loss of an available, locally important mineral resource recovery site. The State Geologist has classified the City of Temecula a classification of MRZ-3a, containing areas of sedimentary deposits, which have the potential for supplying sand and gravel for concrete and crushed stone for aggregate. However, it has been determined that this area contains no deposits of significant economic value based upon available data in a report entitled Mineral Land Classification of the Temescal Valley Area, Riverside County, California, Special Report 165, prepared in accordance with the Surface Mining and Reclamation Act (SMARA) of 1975. No impacts are anticipated as a result of this project. R:\EA",EA86~draft initial study.docR:\EA',EA86',draft initial study.doc 11 9. HAZARDS AND HAZARDOUS MATERIALS. Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant NO Issues and Supporting Information Sources Impact Incorporated Impact Impact a. Create a significant hazard to the public or the environment through the routine transportation, use, or disposal of hazardous materials? b. Crate a significant hazard to the public or the ,,' environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c. Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or acutely hazardous materials, substances, or waste within one- quarter mile of an existing or proposed school? d. Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e. For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles or a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f. For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? g. Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h. Expose people or structures to a significant risk or loss, ~njury or death invOlving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? Comments: 7.a.,b. and c. The proposed project does not propose to utilize and store hazardous materials. Therefore, no significant impact is anticipated as a result of this project. No impact is anticipated. 7.d. The proposed project site is not nor is it located near a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 that would create a significant hazard to the public or the environment. Therefore, no impacts are anticipated as a result of this project. 7.e.,f. The proposed project site is not located within an airport land use plan or within two miles of a public or private airstrip. The nearest airport is French Valley, whose runway is approximately 5 miles to the north well outside the 2-mile airport influence area. No impact upon airport uses will result from this proposal. R:\EA~EA86~raft initial study.docR:\EA\EA86~raft initial study.doc 12 7.g. The project will take I from maintained public streets therefore not impede emergency · .~ response or evacuation plans. No impacts are anticipated as a result of this project. 7.h. The project will not result in an increase to fire hazard in an area with flammable brush, grass, or trees. The project is on an existing pad which will be further graded to create a larger pad with manufactured slopes which will be landscaped with natural and/or fire resistive vegetation. The project is not located within or proximate to a fire hazard area. No impacts are anticipated. 10. NOISE, Would the project result in: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant NO Issues and Supporting Information Sources Impact Incorporated Impact Impact a. Exposure of people to severe noise levels in excess of ,/ standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b. Exposure of persons to or generation of excessive ,/ groundborne vibration or gr. oundborne noise levels? c. A substantial permanent increase in ambient noise levels ,,' in the project vicinity above levels existing without the project? d. A substantial temporary or periodic increase in ambient ,/ noise levels in the project vicinity above levels existing without the project? e. For a project located within an airport land use plan or, v' where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f. For a project within the vicinity of a private airstrip, would ,/ the project expose people residing or working in the project area to excessive noise levels? Comments: 10.all Some short-term construction noise will occur during the proposed grading activities. The construction noise levels will exceed background noise levels. However, the City requires construction noise mitigation by prohibiting construction activities between the hours of 6:30 p.m. and 6:30 a.m. Monday through Friday, and 6:30 p.m. and 7:00 a.m. on Saturdays. No construction can occur on Sundays or holidays. Because of this mitigation no new or significant impacts to the surrounding land areas are anticipated. As a result, no additional mitigation measures are necessary for short term noise impacts. The project site is located adjacent to Pauba Road and is near Rancho Vista Road. According to the General Plan, the exterior noise levels for noise sensitive uses such as schools and libraries must be under 65 dB CNEL. According to the General Plan the areas adjacent to these roads is outside the 65 dB CNEL; therefore, no significant long-term noise impacts are expected to occur. (Sources: 1 and 2.) R:\EA~EA86~raft initial study,docR:\EA\EA86~drafl initial study.doc 13 11. PUBLIC SERVICES: Would the proposal have an effect upon, or result in a need for new or altered Government services in any of the following areas: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant NO Issues and Supporfin,(] Information Sources Impact Incoq3orate(J Impact Impact a. Fire protection? / b. Police protection? ,~ c. Schools? ,/ d. Parks? ~' e. Other public facilities? v~ Comments: 11 .all The proposed project will have a less than significant impact upon, or result in a need for new or altered fire, police, schobls, parks, recreation or other public facilities. The project will incrementally increase the need for some services. However, the City has an ongoing comprehensive services that mitigates any incremental affect this project may create. Therefore, no significant impacts are expected to occur. R:\EA~EA86~raft initial study.docR:\EA~EA86~draft initial study,doc 14 12. UTILITIES AND SERVICE SYSTEMS: Would the project: Potentially Potentiaily Significant Unless Less Than / Significant Mitigation Significant No Issues and Supporting tnformation Sources impact incorporated Impact impact a. Exceed wastewater treatment requirements of the ,,' applicable Regional Water Quality Control Board? b. Require or result in the construction of new water or ,,' wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c. Require or result in the construction of new storm water ,,' drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d. Have sufficient water supplies available to serve the ,~ project from existing entitlements and resources, or are new or expanded entitlements needed? e. Result in a determination by the wastewater treatment ,-' provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f. Be served by a landfill with sufficient permitted capacity to v' accommodate the project's solid waste disposal needs? g. Comply with federal, state, and local statutes and ,/ regulations related to solid waste? Comments: 12.a.b.d. and e. The proposed project will not exceed wastewater treatment requirements, require the construction of new treatment facilities, nor affect the capacity of existing providers. The proposed project will have an incremental effect upon existing systems. However, the Final Environmental Impact Report (FEIR) for the City's General Plan states: "implementation of the proposed General Plan would not significantly impact wastewater services." Since the project is consistent with the City's General Plan, less than significant impacts are anticipated as a result of this project. In addition, the proposed project will not significantly impact existing water supplies nor require expanded water entitlements. The project will have an incremental effect upon existing systems. While the project will have an incremental impact upon existing systems, the Final Environmental Impact Report (FEIR) for the City's General Plan states: "both EMWD and RCWD have indicated an ability to supply as much water as is required in their services areas (p. 39)." The FEIR further states: "implementation of the proposed General Plan would not significantly impact wastewater services (p. 40)." Moreover, it is anticipated that the outside agencies will have no objections, and will provide "Will Serve" letters indicating services will be provided to this project. Since the proposed project is consistent with the City's General Plan, no significant impacts are anticipated as a result of this project. Less than significant impacts are anticipated as a result of this project. 12.c. The proposed project will not require or result in the construction of new storm water drainage facilities or expansion of existing facilities, and will not cause significant environmental effects. The existing facilities have capacity to handle the proposed project, as the result will only be an incremental effect upon existing systems. R:\EA\EA86~raft initial study,docR:\EA\EA8b-Adraft initial study.doc 15 All appropriate environmenta~encies and any necessary clearance~ill be required prior to the approval or issuance of' any permits. Consequently, construction of new storm water drainage facilities or expansion of existing facilities is not anticipated. 12,f.g. The proposed project will not result in a need for new landfill capacity. Any potential impacts from solid waster created by this future development can be mitigated through participation in Source Reduction and Recycling Programs, which are implemented by the City. Less than significant impacts are anticipated as a result of this project. (Sources: 1 and 2) 13. AESTHETICS. Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting Information Sources Impact Incorporated ~rnpact impact a. Have a substantial adverse effect on a scenic vista? ,/ b. Substantially damage scenic resources, including, but not ,/ limited to, trees, rock outcropping, and historic building within a state scenic highway? c. Substantially degrade the existing visual character or quality of the site and its surroundings? d. Create a new soume of substantial light or glare which ,/ would adversely affect day or nighttime views in the area? Comments: 13.all The proposed project located on a predominate ridgeline visible from Rancho Vista Road and beyond. The proposed project has been reviewed to provide pleasing architecture and will provide landscaping on the manufactured slopes to blend in with the surrounding areas. This landscape palette will provide both erosion control and mitigate the aesthetics impacts of the project. As a result, no additional impacts have been identified and no additional mitigation measures are necessary. R:\EA\EA86'tdraft initial study.docR;\EA',EA86~lraft initial study,doc 16 14. CULTURAL RESOURCES. Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant NO Issues and Supportin~ Information Sources Impact Incorporated Impact Impact a. Cause a substantial adverse change in the significance of v' a historical resource as defined in Section 1506.57 b. Cause a substantial adverse change in the significance of v' an archaeological resource pursuant to Section 1506.57 c. Directly or indirectly destroy a unique paleontological v' resource or site or unique geologic feature? d. Disturb any human remains, including those interred ,/ outside of formal cemeteries? Comments: 14.a,b,d. The General Plan EIR diagram of Areas of Sensitivity for Archaeological Resources (Figure 56) does not identify the property as a sensitive archaeological site, although the text of the General Plan EIR recognizes that the survey leading the identification of sensitive sites may not accurately portray all cultural resources in the study area. However, much of this site has been previously disturbed. This disturbance further reduces the likelihood of finding any cultural resoumes. Further, no burial locations have been identified on site. Finally, the environmental impacts associated with cultural resources are consistent with the impacts considered within the Final Environmental Impact Report and the General Plan and Environmental Impact Report. As a result, no additional impacts have been identified and no additional mitigation measures are necessary 14.c The General Plan Ell:{ sensitivity map for paleontological resources identifies the project site as being within a sensitive area for paleontological resources. The project shall require that prior to the issuance of grading permits, a qualified paleontologist is retained for consultation and comment on the proposed grading with respect to potential paleontological impacts. If the paleontologist finds a potential impact to significant resources, a pre-grading meeting between the paleontologist and the excavation and grading contractor shall be arranged and during grading and excavation activities a qualified paleontological monitor will be present on site and shall have the authority to stop and redirect grading activities to evaluate the significance of any exposed paleontological resoumes. If paleontological resoumes are encountered, adequate funding shall be provided to collect, curate and report on these resources to ensure the values inherent in the resources are adequately characterized and preserved. With these measures, potentially significant impacts will be reduced to a level of less than significant. (Sources: 1 and 2). R:\EA',EA86~Iraff initial study.docR:\EA'~A86~draft initial study.doc 17 15. RECREATION. Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting Information Sources Impact Incorporated Impact Impact a. Would the project increase the use of existing ,,' neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b. Does the project include recreational facilities or require ,/ the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? Comments: 15.all The proposed project would not affect the need or demand for additional parks and recreational amenities because of the scale and nature of the use. As a result, no significant impacts are anticipated. 16. MANDATORY FINDINGS OF SIGNIFICANCE. Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting Infon~ation Sources Impact Incorporated Impact Impact a. Does the project have the potential to degrade the quality ,/ of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number of restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b. Does the project have impacts that are individually ,/ limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects? c. Does the project have environmental effects which will ,/ cause substantial adverse effects on human beings, either directly or indirectly? Comments: 16.a The proposed project will not degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number of restrict the range of a rare or endangered plant or animal R:\EA~A86~draft initial study.docR:\EA\EA86~raff initial study.doc 18 or eliminate important exam the major periods of California Drehistory since the site has been previously graded and disturbed. The studies performed by a qualified Biologist revealed no significant biological resources. Furthermore, the site is part of a controlled burn every 4th of July since it is in close proximity to the City's annual 4th of July festivities. As a result, no additional impacts have been identified and no additional mitigation measures are necessary. 16.b The cumulative impacts from the project are considered less than significant because the site is proposed to be developed in a manner consistent with the City of Temecula General Plan and Zoning. All cumulative impacts from the land use and development scheme envisioned in the General Plan have been analyzed in the General Plan Environmental Impact Report. Given the project's consistency with these documents, cumulative impacts must be considered as less than significant. As a result, no additional impacts have been identified. 16.c No environmental impacis have been identified that would cause substantial adverse effects on human beings, directly or indirectly. Mitigation has been identified to reduce all environmental impacts to a level of less than significant. 17. EARLIER ANALYSES. Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, one or more effects have been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case a discussion should identify the following on attached sheets. a. Earlier analyses used. Identify earlier analyses and state where they are available for review. b. Impacts adequately addressed. Identify which affects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c. Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. Comments: 17.a The City of Temecula General Plan Environmental Impact Report, copy of which is available at the City of Temecula Planning Department. 17.b Cumulative impacts from all of the issues discussed above were addressed and mitigated to one degree or another in the General Plan and its EIR. 17.c Mitigation measures associated with the proposed project and analysis have been previously described and the measures will be implemented as part of the project approval and implementation processes. R:\EA~EA86~draft initial study.docR:~EA~EA86~lraft initial study.doc 19 SOURCES 1. City of Temecula General Plan 2. City of Temecula General Plan Final Environmental Impact Report 3. City of Temecula Development Code 4. Focused California Gnatcatcher Study (FCGS), Principe & Associates, July 17, 1999 5. Quino Checkerspot Butterfly Focused Habitat Assessment, Principe & Associates, July 17, 1999 6. Stephens Kangaroo Rat Focused Habitat Assessment, Principe & Associates, July 17, 1999 7. South Coast Air Quality Management District CEQA Air Quality Handbook. ~ 8. Updated Focused Habitat Assessment, Principe & Associates, November 15, 2001 9. Preliminary Geotechnical Investigation Report, Converse Consultants, February 2, 2000 R:\EA',EA86\draft initial study.docR:\EA~AB6\draft initial study.doc 20 Proposed Mitigation Monitoring Program Planning Application No. EA-086 (Temecula Library) TRANSPORTATION/TRAFFIC General Impact: The project may cause an increase in traffic volumes in the immediate area Mitigation Measure: Ensure the proposed improvements for widening Pauba Road are completed prior to the operation of the library. Specific Process: Coordinate the timing for the construction of Pauba Road widening with the construction of the library. Mitigation Milestone: Prior to the operation of the library the improvement to Puaba Road shall be completed. Responsible Monitoring Party: Planning Department. TRANSPORTATION/TRAFFIC General Impact: The project increase public transportation needs in the area Mitigation Measure: RTA shall provide a future bus route and on-street bus stop to serve the project as determined necessary by RTA. Specific Process: Consult RTA during the site design process. Mitigation Milestone: Prior to the issuance of occupancy permits. Responsible Monitoring Party: Planning Department. Cultural Resources General Impact: The project may cause an impact on sensitive paleontological resources. Mitigation Measure: Prior to the issuance of grading permits, a qualified paleontologist is retained for consultation and comment on the proposed grading with respect to potential paleontological impacts. If the paleontologist finds a potential impact to significant resources, a pre- grading meeting between the paleontologist and the R:\EA\EA86~Mitigafion Monitoring Program,doc excavation and grading contractor shall be arranged and during grading and excavation activities a qualified paleontological monitor will be present on site and shall have the authority to stop and redirect grading activities to evaluate the significance of any exposed paleontological resources. If paleontological resources are encountered, adequate funding shall be provided to collect, curate and report on these resources to ensure the values inherent in the resources are adequately characterized and preserved. Specific Process: Coordinate the timing for the consultation with a paleontologist with the preparation of the grading plans. Mitigation Milestone: Prior to the grading permits. Responsible Monitoring Party: Planning Department. R:\EA',EA86~/lifigation Monitoring Program.doc CITY OF TEMECULA City Council A.qenda Item Placement Submittal Date: 3/19/02 TO: City Clerk's Department FROM: Herman D. Parker, Director of Community Services Please place the following item on the City Council Agenda of Mamh 26, 2002. ITEM TITLE: Environmental Review of the Temecula Public Library RECOMMENDED ACTION: That the City Council adopt a Mitigated Negative Declaration, including the mitigation monitoring program attached thereto, for the Temecula Public Library project. PLACE ITEM UNDER THE FOLLOWING HEADING: [] City Council [] CSD [] RDA [] Presentations & Proclamations [] Business [] Consent Calendar [] Public Hearings** [] Closed Session **If a public hearing is required, the Public Hearing Notice must be provided by the initiating department to the City Clerk's depadment by Friday at noon, two and one half weeks prior to the date of the City Council meeting, with envelopes addressed to all property owners required by law to be noticed, a certified mailing list, and sufficient postage. If there are special noticing requirements, provide that information on a separate sheet. Please send copy of Agenda and Agenda Report to: (ie, applicant, claimant, appellant, interested persons) Name: Address: Name: Address: (Attached separate sheet, if necessary) Standard,Agenda Placement DEPARTMENTAL REPORTS APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE ~ CITY MANAGER ~ [. CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning DATE: March 26,2002 SUBJECT: Monthly Report The following are the recent highlights for the Planning Division of the Community Development Department in the month of February 2002. CURRENT PLANNING ACTIVITIES New Cases The Division received 3_.~8 new applications for administrative, other minor cases, and home occupations and no applications for public hearings during the month of February. The new public hearing cases are as follows: Status of Maior Projects Staff is working with project applicants to address any remaining issues and prepare the following cases for public hearing before the Director of Planning or Planning Commission: · Roripaugh Ranch Annexation, Specific Plan, Environmental Impact Report and Development Agreement. Staff has been meeting with the applicant to address the Commission's concerns, assist the applicant in developing the project concept, and finalizing the Specific Plan and EIR. · Villages of Old Town Specific Plan, General Plan Amendment and Environmental Impact Report have been submitted. Staff is currently reviewing the initial proposal. · Pacific Dental Services - The applicant has submitted a proposal for a 10,927 square foot retail/dental office building located between the Combs Medical Building and the AM/PM on Highway 79 South. The project was approved by the Planning Commission on March 6th.. · Rancho Community Church -Application to design, construct and operate a church and school campus on a 39-acre site. The overall proposal will include 292,745 square feet of religious and school facilities with twb four level (two story) parking structure (162,600 square feet and 380,023 square feet). The site will be developed in a number of phases beginning with a 1,500 seat, 26,927 square foot interim sanctuary with assembly room and a nursery; a two story 226,777 square foot administration building, 17 modular classroom buildings, a 9,695 square foot preschool, a 300 seat, 5,856 square foot chapel, two field house buildings totaling 10,000 square feet and lighted athletic fields. Future phases include permanent first through twelfth R:'~AONTHLY.RPT~.OO2\February 2002 rev. 1 .doc grade classroom facilities, a gymnasium, a 3,500 seat, 43,727 square foot worship center and a parking structure. This project is located on the north side of State Highway 79 South east of Jedidiah Smith Road. Resubmittal was made February 27, 2002 and a third DRC meeting is scheduled March 19, 2002 with the applicant and subcommittee. · Mosco Lot 20 - Development Plan application to design and construct a 16,400 square foot · warehouse/office spec building on 1.52 acres. The project is located on Winchester Road between Zevo and Colt Ct. The proposed project was submitted on June 22, 2001, and was deemed incomplete. DRC was held on November 1, 2001, comments routed to applicant. Applicant resubmitted on February 12, 2002, staff anticipates the item will be scheduled for an April Planning Commission meeting. · Mosco Lot 29 - Development Plan application to design and construct an 11,600 square foot warehouse/office spec building on .92 acres. The project is located in the vicinity of Winchester and Diaz Road. The proposed project was submitted on June 22, 2001 with additional materials submitted on August 17, 2001. The project was reviewed at DRC on September 27, 2001. The applicant has not resubmitted plans as of November 13, 2001. · Villages of Temecula - Development Plan proposal for a 160 unit multi-family apartment complex with a commercial retail/office center located on the south side of Rancho California Road, west of Cosmic Drive and east of the Moraga Road and Rancho California Road intersection. This project also includes a General Plan Amendment, change of zone (with a PDO) and a parcel map. The State Clearinghouse has circulated the initial study, no comments were received. A community meeting was held on January 14, 2002. The Planning Commission recommended approval of the project on February 20~h. it will be scheduled for City Council in April. · Muni-Financial - Planning Application to construct, operate and establish a 16,197 square foot office building on 1.31 acres. The project is located on the northwest corner of Madison and Sanborn. · Wolf Creek General Plan Amendment and Specific Plan Amendment - The General Plan Amendment involves relocating the sports park from Deer Hollow Road to Wolf Valley Road. The property owner has submitted a conceptual plan to allow for a senior housing alternative on the south half of the project. Staff has reviewed the proposal and provided comments to the applicant. Staff is also negotiating an amended development agreement with the applicant. This item will not go to public hearing until the Development Agreement issues are resolved. · Romano's Macaroni Grill - Planning Application to construct a 6,900 square foot freestanding restaurant building within Bel Villaggio Commercial Center. The project site is located at the southwest corner of Margarita Road and North General Kearney Road. The applicant's architect submitted a revised site plan and revised building elevations to address issues raised by staff. Public Works Department has requested additional grading and site plan revisions not adequately addressed by the applicant's engineer. · Temecula Creek Village - Application for a 32.6-acre mixed-use development site containing 108,100 square feet of retail/office uses, four hundred multi-family residential units, and a 15,000 square foot day care center building. A related application (Tentative Parcel Map No. 30468 was filed to divide the site into 14 parcels for commercial and residential uses. The project site is located at the southeast corner of State Highway 79 and Jedediah Smith Road. DRC was held on November 1, 2001. Staff is making final edits to the environmental R:'~MONTHLY. RP3~2002',February 2002 rev. 1.doc 2 assessment and the case will be scheduled for a May 1, 2002 Planning Commission public hearing. · Mosco Lot 34 - Development plan application to design and construct a 24,850 square foot office/warehouse building on 1.68 acres. The project is located on the south side of Zevo Drive approximately 2,000 feet west of Diaz Road. CEQA initial study being prepared. Application has been deemed complete. Anticipated Planning Commission hearing date is April 3, 2002. · Temecula Partners Industrial Spec Buildings- Development plan application forthe design and construction of adjacent 22,000 square foot tilt up concrete industrial building on two separate parcels located on the north side of Winchester Road, west of Diaz Road. Project was scheduled for October 11,2001 DRC meeting; awaiting resubmittal. · U Stor It - A Conditional Use Permit for the design, construction and operation of a 55,950- square foot storage facility located on Pala Road. The proposed project was submitted on October 22, 2001 and was deemed incomplete. Applicant has re-submitted plans on January 15th, and staff is awaiting comments from other departments prior to hearing. · Crystal Ridge Office Building - A Development Plan for the design, construction and operation of a 9,990 square foot office building located at 43471 Ridge Park Drive. The proposed project was submitted on October 16, 2001, and was deemed incomplete. Applicant has resubmitted, staff anticipates a March Director Hearing meeting. · The Summit at Crystal Ridge - Development Plan to construct a 36,000 square foot office building on 3.01 acres, located at Parcel No. 5 of Parcel Map No. and also known as Assessor's Parcel Number 940-310-040-5; submitted by Lucas Development Company. The application was submitted on January 22, 2002. Item has been scheduled for a DRC meeting on March 14th. · Gospel Recordings Building - Development Plan Application to design and construct a 17,500 square foot executive office building on a 41,817 square foot lot. The project is located on Enterprise Circle North. The Planning Commission will likely consider the project in April. · Promenade Outlot Pad Q - Administrative Development Plan 7,600 square foot single story retail building. The project is located on the east side of Ynez Road, south of Winchester Road. Application is being reviewed for completeness. · The Fountains at Temecula Expansion - Submitted by Fountain Glen Properties; a proposal to design and construct an additional 102 senior apartment units on 3.4 acres. This is an expansion of the existing Fountains at Temecula project located on the adjacent eight-acre lot. The project is located on the northwest corner of Nicholas and Winchester Roads. Staff comments from the DRC meeting were provided to the applicant March 20, 2002. Staff is awaiting their response. · Linfield Christian School Master Plan - Submitted by Linfield Christian School; a Conditional Use Permit 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). Staff met with the applicant March 1, 2002 to discuss the need to process a PDO in order to establish development standards and uses desired. Staff is awaiting submittal of material. R:\MONTHLY.RP'P,2002\February 2002 rev. 1.doc 3 · Commercial Tentative Parcel Map - Application submitted by Lowry and Associates to divide a 13.2 acre parcel into 14 commercial lots. The subject property is located at the southeast and southwest corners of State Highway 79 South and Pala Road. Staff is drafting Initial Study. · Meadowview Golf Course - Conditional Use Permit and Development Plan to design and construct a public golf course and driving range within the Meadowview Community. Staff is awaiting third draft of Focused Environmental Impact Report for review. · Crowne Hill Subdivision - A grading permit has been issued to Pacific Century Homes for grading and improving the remaining 396-acre subdivision located on the southeast corner of Pauba and Butterfield Stage Roads. Upon completion sometime this fall, 803 single-family residential lots will be ready for development. · Hampton Inn Suites - Development Plan application to design and construct a 70 room, four story hotel on a 1.3 acre parcel located at the northeast corner of Jefferson and Winchester. The application is being prepared for a future Planning Commission meeting. · Sprint Monopine - A Minor Conditional Use Permit for the co-location of wireless antennas on an existing Sprint monopine for Verizon Wireless located at 41520 Margarita Road. The application was submitted on November 27th and deemed incomplete on December 26, 2001. Applicant has resubmitted and staff is awaiting department comments. · Temecula Professional Center- Minor Conditional Use Permit for the installation of two wireless telecommunication facilities on the roof of an existing building. The application was submitted on December 13, 2001. The project was scheduled for a DRC meeting on February 14, 2002. Staff is awaiting resubmittal from the applicant. · Cingular Wireless Telecommunications & Sign Structure at Chaparral High School - Conditional Use Permit to construct a 26 foot high, 14 foot x14 foot rectangular structure to house six wireless telecommunications antennas and equipment, and structure will include three sides with signage to consist of an 84 square foot non-illuminated sign with green letters and blue background to read "Chaparral High School", a 42 square foot electronic message markee, and a 56 square foot blue and beige colored "C" letter with a black and green puma mascot illustration. Staff is currently reviewing this project. · Ralphs Marketplace at Vail Ranch - Substantial Conformance Application (administrative review only) to reduce the size of a previously approved (under County a Conditional Use Permit) shopping center retail building from 16,500 square feet to 10,500 square feet. NOTE: Adjacent portions of the subject shopping center site have already been constructed (e.g. Ralph's Market and parking lot). Staff will be preparing conditions of approval and an approval letter within one week. Construction plans are being reviewed in plan check under the City's concurrent plan check processing procedure. · Sunridge Community Church - Conditional Use Permit to convert and occupy an existing two- story, 45,000 square foot industrial building on a 3.88-acre parcel into a church facility developed in three phases. Phase 1 will consist of: a 7,378 square foot chapel for 669 people, nine children's Sunday school rooms, one multi-purpose meeting room to include Sunday school use for junior high and senior high pupils. A lobby and reception area, nine offices, a conference room, and an executive lounge room are also a part. Lots 30, 31, & 32 will be improved to provide 322 parking spaces. Phase 2 will abandon the chapel of phase 1 and divide the space into four additional Sunday school rooms, a new 13,571 square foot chapel will be improved in R:'~MONTHLY.RPT~2002'J:ebruary 2002 rev. 1.doc 4 the undeveloped southeast quadrant of the building. Lot 29 will be improved to provide 83 additional parking spaces for a total of 405 spaces (389 are required for Phase I & Phase 2). Phase 3 is a request to construct as an option an additional 171 -space parking lot on 2 parcels containing 1.76 acres. The Minor Conditional Use Permit is scheduled for Director's Hearing on Thursday, March 21,2002. · 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 roofing on a two-lot, 3.65-acre site. Future phase to include construction of a one-story 3,000 square foot office and caretaker's dwelling unit located at front of site. Revised plans are being reviewed by City departments. · Cingular Wireless Lighting Pole at Rancho California Sports Park - Replace an existing 80' high wood baseball field lighting pole with a new 80' high steel lighting pole to contain six flush- mounted antennas at a 40' height for improved cellular phone coverage, and construct a related 10'xl 6' telecommunications equipment structure. This project has been noticed and scheduled for Director's Hearing on March 21,2002. · Professional Golf Academy - Conditional Use Permit for a 120 student golf college and nine hole par three golf course with driving range on a 22 acre site on the south side of Rancho Vista Road east of Margarita. Staff is finalizing the application review and scheduling a community meeting in early April. Small Business Assistance · Old Town Temecula Salon and Day Spa: After helping owner guide this project through the Old Town Local Review Board for new paint and signs, staff aided this business owner in making an application for a massage establishment permit which is currently pending police approval. · Country Home/Country Garden: Aided this owner in resolving a window design problem, which was taken to the Old Town Local Review Board. Also helped her obtain approval for her new sign and expedited funding under the Fa(~ade Improvement Program. · Welty Building Outdoor Vendor Area: Aided the owner of this property on Main Street in the development of exhibits and color boards for this new Old Town project. Provided assistance with applications for a Development Plan and an Encroachment Permit in preparation for further review by the Old Town Local Review Board. · Old Town Sunglasses and Jerky: Staff helped this new Old Town business obtain funding and approval for signs under the Fa(~ade Improvement Program. · Pacific Sales: Staff provided assistance to the representatives of this business to help them accelerate the conditional use process for this new business. · Del Rio Cakes & Supplies: Application by this new business for a wall signs was expedited in order to obtain approval from the Old Town Local Review Board and funding under the Fagade Improvement Program. · La Taqueda: Provided assistance to this Old Town business in making an application for new signs under the Facade Improvement Program. R:'WIONTHLY.RP'F~.002\February 2002 rev. 1 .doc 5 · The Edge Nightclub: Staff advised applicants regarding necessary plans and approvals needed to open this new business. Site visits were made by the Fire and Building & Safety departments in order to help expedite the completion of this project. · Old Town Candy Store: Provided applicant with information pertaining to the Fa~:ade Improvement Program for the funding of signs and tenant improvements. Staff met with the owner of the building where this store will be located to help expedite the processing of a sign program. Special Event Permits · 2002 Rod Run: Staff held meetings and advised the Temecula Town Association (TTA) regarding its temporary use permit application and prepared a comprehensive site plan for this event. · Camp Del Corazon Race: Staff assisted this organization in preparing an application and site plan for this temporary use permit. Organizational meetings were with the promoters and all City departments involved for this event, which was held on February 23, 2001 at the Promenade Mall. · Cinco de Mayo: Provided application information to Mr. Paul Orozco who is planning this event for Old Town Temecula with the cooperation of several civic groups and businesses. Massaqe Establishment Permits · Stressed Out Management, located at 41790 Winchester Road, was issued a one-year renewal for a massage establishment permit on February 25, 2002. Special Proiects & Lonq Ran.qe Plannin,q 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: · Housing Element Update - The City has received the comments of the State Department of Housing and Community Development and is preparing the draft Element for the Planning Commission's consideration. The remaining issues with HCD are Focal land costs, unit affordability and their relationship to the allowable densities. · Subsequent Environmental Impact Report for the City Redevelopment Plan o This activity is on hold pending the update of a General Plan Circulation Analysis. · Comprehensive General Plan Update - A supplemental CAC was held on February 25th. Staff has prepared a revised schedule to try to get the process back on track. · 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. · 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. R:'dvIONTHLY.RPT~2002\February 2002 rev. 1 .doc 6 This item is on hold pending additional staff resources. · Application Fee Study - Staff has provided information to the consultant and Finance Department about changes to our current fee schedule and is currently awaiting revised information to be returned for the Planning Department's review. · Hillside Development Policy - The policies are being examined for integration into the draft- grading ordinance. This item is on hold pending additional staff resources. · Multi-species Habitat Conservation Planning Efforts for Western Riverside County - Councilman Nagger and Planning Staff are attending committee meetings and monitoring the process of determining conservation reserve needs. · Large Family Day Care Home Facility Ordinance - The Planning Commission considered this Ordinance amendment at their February 2, 2000 meeting. This item is on hold pending staff resources. · County Project Reviews - Staff continues to allocate significant resources to review projects within the County and other local jurisdictions that could affect the City of Temecula. Information regarding these projects will be forwarded under separate cover labeled Projects of Concern. · Southside Specific Plan - This item is on hold pending additional staff resources. · Secondary Dwelling Unit Ordinance - The City Council sent this item back to the Planning Commission to re-evaluate this topic. · City - Project environmental reviews and permitting: o Butterfield Stage Road (NEPA) - Draft PES and Draft Programmatic Categorical Exclusion have been prepared and sent to Caltrans District office for approval. o Temecula Library o Advance Acquisition Authorization for McCabe Court properties (NEPA)- Accepted by CalTrans and Riverside County for "advance protection". Public Works is hiring an appraiser to determine the value of the site. o Long Valley Channel Maintenance General Plan Amendments · Villages of Temecula, south of Rancho California Rd., west of Cosmic and east of Moraga intersection. A community meeting was held on January 14, 2002. The project was approved at Planning Commission on February 20, 2002 and will be scheduled for City Council in the near future · Rancho Highlands Drive was continued by the City Council on September 25, 2001. · A request to reduce the size of Via Industria (Western Bypass Corridor) north of Avenida Alvarado has been submitted and has been on hold pending the approval of a revised Circulation Element. R:'WIONTHLY. RPT~2002\February 2002 rev. 1 .doc 7 · Eli Lilly General Plan Amendment and zone change - Staff has been meeting with representatives from Eli Lilly and Guidant on a future GPA in this area. The current proposal would only involve changing the land use designations on about half of the original project area. Staff is currently considering different land use options for the properties facing Overland Road. Geo,qraphic Information System (GIS) Activities · The contract for the City's GIS-based Fire Response Program with Plant Equipment has been executed. Staff is currently conducting testing on hardware prior to equipping all the front line emergency vehicles in the City. · Fire Department and GIS staff once again met with Riverside County GIS and the Riverside County Sheriff's office to discuss countywide coordination of data for public safety applications. It was determined that a committee consisting of representatives of various cities, CDF/County Fire, the County Sheriff's office would be formed and would meeting every other month to discuss the long-term coordination of GIS data including updating and accuracy issues. · Staff is waiting for the first deliverable from the Project Design Consultant's contract for the high- resolution digital aerial ortho-photographs ofthe City and surrounding area. Deliverables for this project will be phased over the next 8 to 10 months. · Recent mapping products include: o Business Park/Service Commercial potential sites map prepared for City Manager's office. o Updated maps for Rod Run 2002. o Staff produced a 60" aerial base map for use by all city departments. o Produced Maps from the County Integrated Plan for Public Works. o Maps showing 1 Y2 and 2-mile zones around fire stations for Fire Department. o Updated the Assessment District/CFD map for Finance. o Map of the address ranges in the Vail Ranch area for Building. o Large Scale aerial map of Old Town for Redevelopment. o Response area maps for the Fire Department. o Ownership pattern map for proposed land acquisitions in Old Town for Redevelopment. o Zoning map updated for Planning. o Data and map of RDA and RDNCity owned properties for Redevelopment. o Residential data report prepared for Planning. o Vicinity, zoning and land use exhibits prepared for Planning. Staff continues with ongoing data layer development and maintenance. R:~ONTHLY. RPT~2002'~February 2002 rev. 1.doc 8 APPROVAL CITY ATTORNEY DIRECTOR Of FINA.~E ..J~ CITY MANAGER '.-AL/ V CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Jim Domenoe, Chief of Polic~' DATE: March 26, 2002 SUBJECT: Monthly Departmental Report The following report reflects special teams, traffic enforcement and miscellaneous activity occurring during February of 2002. The Police Department responded to thirty-three "priority one" calls for service during the month of February, with an average response time of approximately 5.4 minutes. A total of 3,682 calls for police service were generated in the City of Temecula during the month. During the month of February, the Temecula Police Department's Town Center Storefront served a total of 172 customers. Fifty-seven sets of fingerprints were taken, twenty-three people flied police reports, twelve people had citations signed off and seven oversize vehicle permits were issued. Crime Prevention Officer Lynn Fanene participated in a number of special events, neighborhood watch and community-oriented programs during the month. Officer Fanene conducted three Crime Prevention workshops/presentations. He also coordinated requests for patrol ride-a-longs. 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 to work on the "Crime Free Multi-Housing" project, certifying an additional apartment complex during the month of February. The teams continued their Warrant Apprehension Program during the month, which resulted in two felony arrests and two misdemeanor arrests. The POP Teams continued with their proactive patrol efforts and made two additional felony arrests and four misdemeanor arrests during the month of February. Additionally, the POP Teams worked a special homeless program, working in conjunction with the County of Riverside's Homeless Intervention Team. They were successful in relocating/placing a homeless person who had been living beneath a bridge under a local thoroughfare. The Old Town Storefront serves as an office for one of the POP teams and a location to assist the public with police services. This has greatly increased their availability to serve the Old Town area. During February, the Old Town Storefront served 140 customers. Fifteen sets of fingerprints were taken, twenty-five reports were written, and thirteen citations were signed off. Monthly Departmental Report Page 2 The traffic team reported that during the month of February there were 722 citations issued for hazardous violations, 20 citations were issued for non-hazardous violations and 41 parking citations were issued. During the month there were five injury traffic collisions, thirty-eight non-injury collisions were reported and nine drivers were arrested for DUI. The Neighborhood Enforcement Team (NET) program resulted in thirty-seven 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 176 citations being issued, with 145 additional SLAP citations issued on overtime. The total number of SLAP citations issued during the month of February was 321, which represents a 100% increase in SLAP citations from the previous month. During the month of February, the POP officers assigned to the Promenade Mall handled a total of 180 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 sixteen misdemeanors and eight felony cases for various offenses. Officers McEIvain and Rupe continued to provide training to security staff during the month. The mall officers continued to work on vehicle theft and burglary programs. Four vehicle thefts occurred during the month of February. The posse also increased their presence around the mall on weekends with extra patrols of the parking areas. The five school resource officers continued to remain active during February. They conducted a total of twenty school presentations. The topics of these presentations ranged from "Current drugs" (for school staff), to "DUI" to "Gateway Drugs." The school resource officers also conducted many counseling sessions with students. Two misdemeanor arrests were made during February; one for theft and the other for driving without a driver's license. A total of forty-five investigations/reports were conducted/written by the school resource officers during February. The JOLT program (Juvenile Offender Law Enforcement Program) continues to be a success in part through its Youth Court program. Officer Michelle M~deiros conducted the 81 st 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 Medeiros worked with "at risk" juveniles throughout the month and also conducted counseling sessions with their parents. She also assisted the District Attorney's Office and the Probation Department by providing training during home visits with incorrigible/at risk juveniles. During the month of February, Officer Medeiros made a felony arrest for a female juvenile who failed to appear for a scheduled court appearance. During the month of February, the Special Enforcement Team (SET Team) of Officers Todd Pauling and John Morin handled a total of seventeen cases. These cases resulted in twenty-eight misdemeanor and seventeen felony arrests, primarily for narcotics violations. This team continues to work street level narcotics and specialty patrol within the city on a pro-active basis. During this month, the team served five search warrants for narcotics and stolen property. They recovered quantities of methamphetamine and marijuana. 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 314 hours of service in February. Volunteer assignments include computer data input, logistics support, special event assistance and telephone answering duties. Having graduated from the CAP Academy, the Community Action Patrol (CAP) Program volunteers were recognized at the first City Council Meeting du ring the month of February. The nine volunteers have begun 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 will Monthly Depadmental Report Page 3 attend to are business checks and abandoned vehicles and traffic control. The goal of the program is high visibility, which prevents crime from occurring. These volunteers will also have the ability to report suspicious activities and persons directly, via police radio, to sworn officers. 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, off road vehicle enforcement and a variety of special functions. Reserve police officers worked a total of 110 hours during the month of February, with 100 of those hours specifically spent on patrol in Temecula. APPROVAL C I ~--'~-'~-~N EY~ DIRECTOR OF FIN,~NCE~. CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Council/City Manager FROM: Anthony J. Elmo, Director of Building & Safet~ DATE: March 26, 2002 SUBJECT: Departmental Report February 2002 PREPARED BY: Carol Brockmeier, Administrative Secretary TOTAL NUMBER OF PERMITS ISSUED ................................................................... 187 NSFR .................................................................................................................. 28 NCOM ................................................................................................................... 3 TOTAL VALUATION ....................................................................................... $4,238,036 TOTAL NUMBER OF INSPECTIONS PERFORMED .............................................. 4,106 APPROV~/~/~ CITY ATTORNEY DIRECTOR OF FINA~IJTE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council .~ FROM: Jim O'Grady, Assistant City Ma~ DATE: March 26, 2002 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 February 2002. ECONOMIC DEVELOPMENT Leads & Inquiries In the month of February, the City received 2 leads and 8 inquiries. The leads include PF Changs/California Pizza Kitchen and Pacific Sales. On February 27~h, Mark O'Conner of Lee & Assoc., the Alliance and City staff met with Mr. Leon Siiverstein and associate of Arch Aluminum & Glass Co. The company is looking to expand to Southern California. A tour of potential site locations in Temecula was provided to the company. Arch Aluminum & Glass is based in Tamarac, FL, and is one of North America's largest architectural glass and aluminum organizations. Staff provided site information to Gayle Enderwood of Forest City. She is working with restaurants on locating in the Promenade Mall entertainment courtyard. In the month of February, the Southwest Riverside County Alliance responded to 5 leads from the Inland Empire Economic Partnership (IEEP) on behalf of the City of Temecula. The Alliance received 78 leads from the MD&M trade show in Anaheim, three referrals, and one from Expansion Management. Attached is a copy of their activity report. Media/Outreach Materials The City of Temecula was nominated as one of the top companies to work for in the Inland Empire. Councilmember Comerchero and staff attended a lunch held by The Business Press to acknowledge the recipients. More than 150 companies were nominated. Staff prepared an ad that appeared in the advertising supplement in the February 11th issue of The Business Press, which highlighted some of the top companies. (see attached) Staff wrote the City article for the Chamber Newsletter on "Transportation Becomes Increasingly Important In Southwest Riverside County". The article provides information on Measure A and its achievements and talks about the partnership the City has with RCTC and Caltrans. Staff worked with Display Tech Exhibits on a few photo displays for the Temecula Trade Show Booth. Grand OpeninR/Celebration Events On February 15th, staff attended the Harveston Construction Celebration put on by Lennar Communities. This event celebrated the start of essential road improvements that will benefit Temecula. Staff attended the Grand Re-opening of the Mary Phillips Senior Center on February 26th. A ceremony and ribbon cutting was followed by refreshments, musical entertainment, and tours. The senior center expansion provides additional opportunities to meet the increasing needs of our growing population, senior and otherwise, for quality recreation and leisure activities. Meetinqs Staff attended the Murrietarremecula Group on February lS~ at Callaway Vineyard & Winery. A variety of local issues were discussed. On February 4th, staff met with representatives from UCR, Mt. San Jacinto and Guidant to discuss a potential college campus facility in Temecula. Staff attended the Economic Development Corporation of Southwest Riverside County Business Relations Committee Meeting on February 7th. Staff reported on a recent site visit to Zevo Golf. Other committee members reported on site visits to local area companies. On February 7th, staff attended the Inland Empire TechNet meeting, which was put on by the Inland Empire Economic Partnership. Brian Underhill that handles the IEEP's High Tech Program provided a forum for CEO's and investors in the high tech industry to get together and network. The program included a speaker in the high tech industry that provided a forecast of what is to be expected for the high tech industry and what challenges may be ahead. The IEEP is planning to hold a TechNet meeting in Temecula later this year. Staff attended the Southwest Riverside County Manufacturers' Council quarterly luncheon on February 22"d. John Wills, President of Electro-Numerics, provided an overview of his company's products, which include race clocks, Iai'ge digital displays and digital panel meters. Bradley Fikes, Business/Technology reporter for The North County Times, discussed how to communicate as well as understand the aspects of wireless technology, broadband internet, handheld computers and other technological concepts that affect our lives. Staff met with Gary Wilson and Danielle Clark of the Temecula Valley Unified School th District on February 12 regarding the TEAM Program. The TVUSD is exploring ways to more actively involve the business community in its educational programs. In the month of February, staff met with Guidant Corporation several times to discuss plans for their proposed expansion. An Owner Participation Agreement was approved by the City Council on February 12, and staff is now working with Guidant to draft a Development Agreement. It is expected that the Development Agreement will be brought to Planning Commission in May and to the City Council in June. Staff attended the Economic Development Corporation of Southwest Riverside County Board Meeting on February 21~t. Staff provided an update on the Villages of Old Town and Roripaugh Ranch projects. Information packets were assembled and distributed to the Board Members. Staff held a meeting regarding the available auto mall property in Temecula with A.G. Kading and Dick Kennedy on February 21st. Staff attended the Southwest Riverside County Economic Alliance meeting on February 27th. The Alliance budget was reviewed. Discussion items included trade show participation, lead distribution and follow-up, broker meetings and the GIS site. Copies of the Alliance CD Rom will be distributed to the padners the first part of March. TOURISM Tourism Trade Shows Staff participated with the Chamber tourism committee at the GLAMER Travel Show at the Lake EIsinore Outlet Center on February 13~h. Temecula met with senior g?oup travel planners and provided them with tourism literature and giveaways. Callaway and Wilson Creek Wineries provided wine tasting. GLAMER is the industry's leading group travel organization for seniors. The show was well attended and Temecula received great exposure. There was no cost involved for exhibiting at this show. Temecula partnered with the San Diego Convention & Visitors Bureau at the LA Times Travel Show in Long Beach on February 16 & 17. Staff along with members of the Chamber tourism committee manned our booth space. Temecula met with tour operators and travel agents during the first two hours each morning and then the show was open up to the consumer. It was an excellent travel show and Temecula made some very good contacts. Media/Outreach Materials Staff met with the Ontario Convention & Visitors Bureau and discussed co-op opportunities for FAM tours, site visits and special events as well as Temecula being included in their marketing materials. Staff has supplied the bureau with tourism, museum and wine brochures, and maps to distribute to visitors at the Convention Center. Staff provided Winter Advertising Agency with slides of the Temecula Valley to include in the upcoming CONVIS marketing brochure. Staff provided information to Robert Hyder of Media Ventures in Norwalk, CT. He represents the Pacific Bell Yellow Pages in San Diego County and wanted information on new major attractions in Temecula to include in the "Things to Do" section. The San Diego North 2002 Travel Planning & Conference Guide has been published and is ready for distribution. The City placed a full-page ad in this guide, which is distributed directly and by mail to the travel industries' familiarization trips, trade shows, through media kits, and through the North County offices. There are 50,000 copies distributed. (see attached) Meetings Staff attended Chamber tourism committee meeting on Feb. 7~h. Fred Latuperissa, Director of U.S. Commercial Service for the U.S. Dept. of Commerce made a presentation. This group is mandated by Congress to promote international trade & tourism. They are a national resource with a network of 180 offices reaching 30 countries. They produce a travel guide "Exploring The Inland Empire of Southern California, and Temecula is included. Staff provided an activity report. Staff met with Chip Morton on February 11th regarding an upcoming photo shoot. Photos will be used in marketing materials, sent to travel media, included on city website and presentations and Chamber uses. On February 21s~, staff met with Bob Peishel to provide more information to include on the Tourism CD Rom. The CD Rom is cu~'rently in the production stage. On February 21st, staff met with representatives of Weaver Publications regarding advertising opportunities with San Diego Convention & Visitors Bureau and Anaheim/Orange County Convention & Visitors Bureau. Staff met with Jorge Garza, President of City Channel, on February 26th to discuss various advertising opportunities for Temecula. City Channel features a digital program to inform and entertain hotel guests staying at selected San Diego hotels. City Channel broadcasts 24 hours a day to all rooms in their hotel network. A brief segment on Temecula is currently being featured at no charge as a result of the Lake Elsinore Outlet Mall advertising. City Channel also has ties to The Official Driving Guide of San Diego County, which is distributed by Avis Rent A Car. ATTACHMENTS Temecula Valley Chamber of Commerce Activities Report Economic Development Corporation of Southwest Riverside County Activities Report Southwest Riverside County Economic Alliance Activities Report Inland Empire Economic Partnership Activities Report Temecula Valley Film Council Activities Report (not submitted) Media/Advertising Coverage 27450 Ynez Road, Suite 124 Temecula, CA 92591 Phone (909) 676-5090 · Fax (909) 694-0201 March 6, 2002 Shawn Nelson, City Manager City of Temecula 43200 Business Park Drive Temecula, CA 92590 Dear Shaxvn, Attached please find the Monthly Activity Report provided as per our contract with the City of Temecula. This is the month of February at a glance: Business Inquiry Highlights: In the month of February, 15 businesses requested information on starting or relocating their business in Temecula. They received a business packet, which includes a copy of the City of Temecula demo~aphics, relocatian, housing, rentals, maps, organizations, etc. Committee Highlights: · Tourism & Visitors Council: Tourism Council members enjoyed an informative presentation by Fred Latuperissa, Director U.S. Commercial Service of the United States Department of Commerce at the February meeting. The commercial Services of the United States Department of Commerce is an organization tlxat works aggressively to increase the number of international visitors coming to the United States, The CommerciaI Service is focusing its efforts to Sponsor and promot~' tra~ie events around the world. Fred Latuperissa facilitated a ddegation of tourism professionals from the former Soviet Union to Temecula in October. · Education Committee: The Education Committee was honored to have David Allmen, TVUSD Superintendent speak at the February 14, 2002 meeting. Mr. Allmen spoke in regards to the 2001-2002 adopted budget and the predicted budget cuts that will affect the school district. The committee is continuing to promote the newly developed teacher recognition program. · Ways & Means Committee: The 36m Annual Installation was a wonderful success! The evening honored the Chamber's Businesses of the Year, Non-Profit Organization of the Year and Citizen of the Year. A lifetime Achievement Award was given to John Moramarco. The Way's & Means Committee is currently working on the 2002 State of the City. The event will be held at the Edward's Cinema on March 21,2002. The event will highlight the Mayor's goals for the upcoming year. Local Business Promotions Committee: The Businesses of the Month for March selected by the Ways & Means Committee are Gerard Design Studio and Unika Special Occasion Boutique. Other campaign winners are Oak Creek Manor Luxury Bed & Breakfast was awarded the Chamber Spotlight, and Marie Callender's is the Mystery Shopper winner ~br thc month of March. · Government Action Committee: SB1286, introduced by Senator Ray Haynes is an amendment to the Revenue and Taxation Code that would allow a deduction for specified portion of net operating losses that, in general are allowed to be carried forward for specified periods. Federal limits allow 100% carry, tbrward, but California Law allows only a 65% carry forward. This would offer help to businesses hard hit by the September I 1, 2001 disaster, especially the tourism industry. The Board of Directors has voted to support this bill. SB1743 sponsored by John Campbell would make changes to the California State Tax code to bring it into conformity with the Federal Tax Act and provide increases in the amounts that may he contributed to retirement accounts. TVCC Board has voted to support this bill. · Membership Committee. The Temecula Chamber of Commerce membership committee would like to welcome the 43 new members that joined for the month of January, as well as the 34 new members for the month of February. The February 12th reception (Open House) for the new members was a huge success with over 100 members in attendance. Over 300 me~nh,zrs enjoyed the February 20th mixer hosted by Party P'zazz. · Tourism Highlights (Bulk brochure distribution) Activity Report: · 500 Temecula Brochures, 500 Winery Brochures and 250 Visitor Guides were distributed to tour operators and consumers at the Orange County Register Trade Show. · 100 Temecula Brochures, 100 Winery Brochures, 100 Visitor Guides, 100 Pechanga, Brochures and 100 Temecula Museum Brochures were distributed to tour operators at the Glamer Show in Lake Elsinore. · 900 Temecula Brochures, 900 Winery Brochures, 250 Visitor Guides, 200 Pechanga Brochures 200 Balloon and Wine Brochures and 200 Temecula Brochures ~vere distributed to tour operators and consumers at the L.A. Times Trade Show in Long Beach. · 200 Temecula Brochures, 200 Winery Brochures and 25 Visitor Guides for distribution to guests at the Outdoor Resorts Rancho California. · 30 Temecula Brochures and 30 Visitors Guides to Temeku Hill/McMillen for distribution to clients. · 30 Visitor Guides and 30 Winery Brochures to Corvettes Limited for distribution to the group visiting Temecula. Activity Report: · Total Tourism calls were up 2 percent in February. · Total Phone calls were 3,393 in February. · Total Walk-ins were up 11 percent in February. · Total Mailings were 226 in February. · E-mail requests were up 103.23 percent in February. 2 Also, attached are the meeting minutes for the Tourism and Visitors Council, Education, Ways & Means, Membership and Marketing, Local Business Promotions, Government Action Committee's and a March Temecula Today! if you have any questions regarding this information, please call me at (909) 676-5090. Thank you. ~ullivan President/CEO cc: Mayor Ron Roberts Mayor Pro Tern JelT Stone Councilman Jeff Comerehero Councilman Mike Naggar Councilman Sam Pratt Shawn Nelson, City Manager Jim O'Grady, Assistant City Manager Gary Thomhill, Deputy City Manager Gloria Wolnick, Marketing Coordinat)r TVCC Board of D/rectors TEMECULA VALLEY CHAMBER OF COMMERCE MONTHLY ACTIVITY REPORT FOR FEBRUARY, 2002 Chamber Vis. Center Total PHONE CALLS This Month This Month Year-To-Date TOURISM TOURISM REFERRALS 336 682 Calendar of Events 202 419 Special Events 369 648 General Information 1,005 1,974 TOTAL TOURISM CALLS 1,902 3,723 RELOCATION 167 334 DEMOGRAPHICS 46 136 CHAMBER 1,110 2,280 MISCELLANEOUS 168 410 TOTAL PHONE CALLS 3,393 6,883 * CHAMBER REFERRALS N/A N/A WALK-INS TOURISM 315 120 900 CALENDAR OF EVENTS 174 6 330 SPECIAL EVENTS 97 0 154 GENERAL INFORMATION 957 202 2,273 RELOCATION 192 0 391 DEMOGRAPHICS 65 0 132 CHAMBER 898 0 1,691 MISCELLANEOUS 231 0 459 TOTAL WALK-INS 2,929 328 6,330 MAILINGS TOURISM 93 237 RELOCATION 75 176 DEMOGRAPHICS 58 172 TOTAL MAILINGS 226 585 E-MAIL TOURISM 157 223 RELOCATION 25 75 MISCELLANEOUS 133 313 TOTAL E-MAIL 315 611 WEB PAGE USER SESSIONS N/A N/A GRAND TOTALS THIS MONTH YEAR-TO-DATE PHONE CALLS 3,393 6,883 WALK-INS 3,257 6,330 MAILINGS 226 585 E-MAIL 316 612 CHAMBER REFERRALS N/A ANNUAL VOLUME COMPARISONS Chamber Chamber Percentage February, 2001 February, 2002 Increase PHONE CALLS TOURISM Tourism Referrals 321 336 5 Calendar of Events 190 202 6 Special Events 328 359 9 General Information 1,019 1,005 -1 TOTAL TOURISM CALLS 1,858 1,902 2 RELOCATION 201 167 -17 DEMOGRAPHICS 70 46 -34 CHAMBER 1,315 1,110 -16 MISCELLANEOUS 173 168 -3 TOTAL PHONE CALLS 3,617 3,393 -6 CHAMBER REFERRALS N/A N/A N/A WALK-INS TOURISM 268 315 18 CALENDAR OF EVENTS 141 174 23 SPECIAL EVENTS 95 97 2 GENERAL INFORMATION 906 957 6 RELOCATION 194 t92 -1 DEMOGRAPHICS 65 65 0 CHAMBER 794 898 I3 MISCELLANEOUS 147 231 57 VISITOR CENTER WALK-INS 337 328 -3 TOTAL WALK-INS 2,947 3,257 11 MAILINGS TOURISM 110 93 -15.45 RELOCATION 129 75 -41.86 DEMOGRAPHICS 102 58 -43.I4 TOTAL MAILINGS 341 226 -33.72 E-MAIL TOURISM 41 157 282.93 RELOCATION 39 25 -35.90 MISCELLANEOUS 75 133 77.33 TOTAL E-MAIL 155 315 103.23 * Chamber referrals reflects faxes, walk-ins and phone calls 3-15-202 4;42PN FROM P. 2 EDC March 6. 2002 Jim O'C-rady City of Temecula PO Box 9033 Tcmecula, CA 92589-9033 RE: Activity Summary- February 2002 Business Development Staff'received the following three business development leads: · A phone inquiry fiom Becky Gentilini of Gentilini's Italian Products in Sun River, Oregon, who is looking to relocate to this area. Ms. Gentilini requested various demographics, permit and licensing information and available office space and pricing. Staff forwarded _-_~the.request_to_Stevic Field of the SWRC Economi~c_Alli_a~ · A phone ih-qfii~ from-]~?y'H~&l, business unkndw~. Ms Heed requested demographic information for Southwest Riverside. CDM Group, Inc. referred Ms. Heed to the EDC Staffhas le~ several phone messages to Ms. Heed for follow up. Anion is pending. · A phone inquiry flora a repzesentative of Capri Capital in Arlington IL_ The individual requested information on the top 10 industries and employers in the t~gion. Staff p~ovided various labor data and provided the EDC web site a~ldress and links to the cities of L~ke Elsinore, Murricta and Tcmecula for farther research. .CommuniW Outreach Staff attended the following meetings/events to promote or assist economic development: · Professional Women's R0undtable Meeting - Guest speaker: Kay Ccniceros, former Riverside County Sapervisor (2/7) · SWRC Manufacturers' Council Quarterly Meeting - Topic: digital and high-tech communications. Guest speaker: Brad Fikes; (2/22) · SWRC Economic Alliance Meeting (2/27) · Riverside County Manufacturing Industry Council - Guest speakers: John Slaughtcrbaclg Chairperson; Jer~ Craig, Riverside County EDA Workforce Development Administrator; Pat Stone, Institute for Policy AnaJy$is and Re,search. Topic: Presentation of manufacturing vafidation document. (2/28) 3-1B-2B2 A:A2PM FROM lira O'Orady City of Temecula Activity Summary - February 2002 Page 2 of 2 Business Retention Business Relations Committee Meeting - (2/7/02) See attached meeting minutes for discussion topics. Administration/Ort~anlzation * EDC Board of Directors Meeting held in the Workforce Development Center in Temec, ula. (2/21/02) See attached meeting minutes for discussion topics. * Administration - Staff managed the daily operations of the EDC office; updated the EDC website; and emailed various EDC and business updates to tho membcr~hipfousincss community; This concludes thc activity summary for February :2002. Should you have questions or need further detail, please call me at 600-6064. Respectfully, Diane Sessions Executive Director 3-1B-2B2 4:42PM FROM DRAFT ECO OmCD, m .TCO O X,O DRAFT OF SOUIuWEST ~E CO~ BOA~ OF D~CTO~ GENE~L ~E~G ~u~day, F~b~a~ 21, 2002 - 9:~ a.m. Wor~orce D~elopment Center 27447 Ente~ C~e W~t, Tem~ula, CA BOA~ ~E~ EDC STag ~E~ ~ GUESTS M~lcnc Bc~, Ci~ of~c Els~orc M~c~ Soto ~ Albaug~ Thc Gas Comply ScoR Cr~e, ~d V~ey Medi~ C~ Run Nat~, SWRC Economo S1c~e Field, S~C E~no~c ~ Paul ~sey, g~1on Con~mction Dc~s Fr~ UCR E~mion Ed gtem~e, UCR T~ H~g, E~tern Mu~cip~ Wa~ Dis~ ~ Yales, City of Tem~ula ' Kcith ]o~ ~ssion O~ Na~o~ B~ Di~k Ku~z, CDM ~oup, Inc. Sus~ Nono~ ~id~t Co~ora~on P~ Oberh~sley, C~on P~ ~ Oberh~sley Dasd P~es, D. L. PMr~ & ~cia~es DaSd Ro~th~, S~C M~u~rers Council ~ S~se~, Vein ~ Youm~s, Comm~ity Nafion~ B~k CALL TO ORDER · Board-President Gary Youmans called the meeting to order at 9:03 a.m. Self introductions were made to welcome new attendees. . *_ The Board reviewed the minutes of the January 17, 2002 Board of Directors Meeting. Motion was made by Ted Hating, secondexl by David Rosenthal and carried unanimously to approve the minutes of the January 17, 2002 Board of Directors Meeting. FINANCIAL REPORT · The Board reviewed the January 31, 2002 Financial Report that showed total monthly revenues of $1,384, total expens~ of $6,572 and total cash-in-bank of $85,130. Motion was made by Dick Kurtz, seconded by David Rosenthal and carried unanimously to approve the January 31, 2002 Financial Report. · Quarterly Lunch Reconciliation: The Board reviewed the reconciliation report for the JanuanJ 3 I, 2002 quarterly lunch, which showed an excess of revenues over expanses of $131.65. Gary Youmans reported there were invoices still outstanding. NEW BUSINESS · Appoint Budget Committee: Gary Youmans reported a need for a new budget committee for the upcoming fiscal year. Keith Johnson volunteered and Kon Holliday was appointed m work along with Diane Sessions. March Quarterly Luncheon Update: Gary Youmans reported and all agreed that thc Janumy 31, 2002 Quarterly Luncheon waS a success. Hc also stated that a venue had not yet been contlnned for the March hmcheon. Grant Yatcs suggested that thc EDC extend invitations to thc Riverside County Board of 3-15-282 ~:~3PM FROM Economic Development Corporation of Southwest 1},iverside County Board of DireCtors Meeting - ~ebma~j 21, 2002 Minutes - Page 2 of 3 Supervisors. Ted Hating requested that staffplace the venue name on ail luncheon reconciliation reports. David Rosenthal informed the Board that the Temecula Valley Chamber of Commerce had a master luncheon list for EDC reference. CON~G BUSINESS ' · Temecula General Plan Advisory Committee Update: Gary Youmans reported that there would be several meetings in the future -- two for the general public and three for the Advisory Committee. The Committee had reviewed through half of the existing generai plan so far. The next meeting would be held Monday, February 25t~ at 6:00 p.m. in the City's board room. Mr. Youmans stated that it would be at least a year-long project before any changes were to go public. · Golf Tournament Update: Cra~ Youmans reported that he had concerns regarding the remodeling at SCGA. He stated there were parts of the course not yet playable. He was working with Brenda lnman- Kemball on git~ ideas and that ali details had yet to be negotiated. David Rosenthal volunteered the Manufacturers' Council to assist with the tournament. Susan Norton reported that Guidant would be a sponsor. * Energy Issues: Susan Norton expressed concern with the costs of the ongoing energy crisis, and more specifically on what the State would do with long-term contracts.* David Rosenthal reported there were no new power plants to be built in California in the next two to three years. Dennis Frank reported that energy costs had risen 25% and had hit the UC ~stem particularly hard. C. nay Youmans stated this issue would be a timely luncheon topic. * RCYP I[Jpdat~: No update available. · OPEN DISCUSSION · SWIlC Economic Alliance Update: Stevie Field reported on several relocation leads they were pursuing; and she would attend thc MDM Trade Show. David Phaxes suggested a biolcch committee roundtable rather than a luncheon. · EDC Administrative Update: The Board reviewed the January 2002 EDC Activity Report submitted by Diane Sessions. · UCR Connect: Ed Sternagle reported the next Springboard event was scheduled for March 1 at 11 '30 a.m. at Temecula City Hall, and the next Links presentation would bc held on March 8 at 11510 a.m. at Temecula City Hall. · Business Rdations Committee: No report available. · City, County and Chamber Updates: CRy ofLa~e EIslnore - Marlene Best reported the ground-breaking event on thc Warm Springs project; a submlttai for 40,000 square feet ofR. & D near the skydive air strip would be reviewed; the business breakfast meeting would be held the following week; the Economic Gardening Group held a meeting on l~cbmanj 8' and was well-received; a concessions contract had been signed, which signaled an opportunity for promoters to bring events to Diamond Stadium; the outflow channel landscaping project had been approved; the State park would be opened on March 30~; the Lake Elsinore Chamber EDC luncheon would be held Fabmar~ 214; Student Government Day would be held on February 26~ at Diamond Stadium. C/ty ofMurrieta - No report available. City breakfast would be held at 3-1B-2~2 4:AAPM FRQI,4 ~. G Economic Development Corporation of Southwest Riverside County Board of Directors Meeting - Februa~ 21, 2002 Minutes - Page 3 of 3 City of Temecula - Grant Yates reported the Senior Centex improvement/expansion project would begin next week; thc State of the Edwards Cinema on March 21"t - its theme would be "Temecula Standing Strong" and the topic would be transportation; Mr. Yates distributed a packet regarding the proposed Villages of Old Town and Roripaush Ranch projects; La~e Elsiaore V~lley Chamber of Cononerce - No report available. Murri~ta C~an~e~ of Comme~e - No report available. Temeeula Valley Chamb~, of Commerce - No report available. · SWRC Manufactarer~' Council - David Ro~cnthai reported thc Council's Luncheon would bc on February 22~d at the Hungry Hunter; thc Council had joined ail three area Chambers. ADJOURNMENT At 10:13 a.m., motion was made by Gary Youmans, seconded by David Rosenthal and carded unanimously to adjourn the board meeting. Respectively submitted by: Mercedes Soto Phil Oberhansley R~cording Si~r/:t~iry .......... Board Secretary ~-1~-202 &:a~P~ FRO~ ECONOMIC DEVELOPMENT CORPORATION OF SOUfHWEST RIVERSIDE COUNTY BUSINESS RELATIONS COM]~rl'rE£ MEETING Thursday,. February 7, 2002 - 9:00 a.m. Workforce Development Center, Executive Board Room 27447 Enterprise Circle West, Temeculn, CA Committee Members Present: Also In Attendance: Frank Casciari, CA Bank & Trust Mercedes Solo, EDC Staff Stcvic Field, SWRC Economic Alliance Robin Greet, D&I) Construction Carmen Hill, Tri-Staff Keith Johnson~ Mis. sion Oaks National Bank . Dick Kurtz, CDM Group Ron Nater, SWRC Economic Alliance Jim O'G-rady, City of Temeeula Rex Oliver, Murrieta Chamber of Commerce Diane Sessions, EDC Staff Alice Sullivan, Temecula Valley Chamber of Comme~ce Gary Youmans, Community National Bank Call To Order * EDC President Gary Youmans called the meeting to order at 9:03 am. Welcome · Gary Yo~mans welcomed committee members and thanked all for attending. Attendees made self ' --introductions. FoHow-up Action Reports * American Industrial Manufacturing Services, Inc. (AIMS) - David Roscothal spoke to Ted Hating of Eastern Municipal Water district and Grog Morrison of Elsinore Valley Municipal Water District to obtain informatinn on funding/tax credits for manufacturers that recycle water. He w~ll forward the information to AIMS. Item remains open. * Multi-Visual ProducLs (MVP) - Rex followed up with the company regarding DSL availubili~. MVP will choose non-Verizon alternate provider. Item is closed. .Comunnv Contact Reports · Johnson Machinery- Gary Youmans reporzed he would continue his aRcmpt to make an appointment. · Milgard Manufacturing - ]?,on Nater reported that he would attempt a visit through his' contact. Jhn O'Grady reported that Milgard would be looking at an expansion, new parking and other issues. Carmen l-~ll clari~ed some key contacts and their positions. · Zevo Golf- Jim O'Grady and Diane Sessions ~eponed a fascinating and worthwhile visit with President Michael Hoffee. Zero manufactures golf clubs and equipment. The company had been in operation for three years in SWRC. They had twenty employees at this location. Primary customers were golf enthusiasts and golf pros. Customers were worldwide. Primary competitors were Callaway and Titleist. Mr. Hoffee ranked the company as small. Sales in the past year were down due to restructuring company logo and product marketing. Employees lived primarily in the Temecula/Murrieta area. Company planned tO increase number of employees in the foreseeable future. There was a plan to consolidate plant fi.om 120,000 square feet. There were no contingency plans in the event of a power outage. A problem Zero was Business Relations Committee Me. ting Minu~es - February ?, 2002 Page 2 of 3 facing was the USGA's attempt to limit the size of club heads. This ruling would come at, er Zevo invested a large sum in the R&D and marketing of their new technologically advanced driver. Mr. Hoffee stated they were happy doing business in SWRC and wanted information on tax credits for hiring workers ~nder the Americans with Disabilities Act. Mr. Hoffee greatly appreciated the visit. · New Century Homes - GaD, Youmans reported a visit with owner Bernie Truax ofthls L~ke Elsinom-based pre-fabricated home manufacturer. The site was a large lot where many models were displayed. The company was improving after experiencing some real estate problems in the Sage area. The o~mer was planning io sell his homes on 5-acre parcels and sell the properties as a whole, but that surrounding landowners complained and consequently the deal fell through. The company maned out with referrals only, Price ranges for these houses were between the low 100 m mid 200 thousand.' Gray stated he was ve~j impressed with the houses. He also stated that the owner believed that business was increasing and he was optimistic about the furore. * Basics, Et~. - Keith Johnson reported that he and Frank Caseiari visited with John Kupka, president of this of this automotive accessories wholesaler. Company was started in 1983 in La Habra, California, and relocated a few years laler to the Temecula Valley. In SW Riverside County for fourteen years, they relocated because of the affordable lease rate and quality of life. Owner stated that the advantage of this area ,,vas the quality of life, with no disadvantages. Primary customers were automobile dealerships in the western United Slates. Pr/mary competitor was the Ned R. Healey Company in Huntington Beach, California. Mr. Kupka ranked his company as medium-sized, within the top 25% of his industry. Sales were up in the past year due to an .... expansion.into new geographic areas and the hiring of new salespeople. He found the local economy stable. Company's principal suppliers were nationwi~i~,/nufacturers of automotive accessories. He stated his suppliers would not be interested in SW Riverside County. Company's employees lived mainly in the Temecola/Murrieta area (75%), Lake Elsinore (5%), and other Riverside county areas (20%). Company planned to increase number of employees by 3 or 4 in the foreseeable future. There was a possibility for plant expansion in the Temecula Vall~j. Mr. Kupka stated that the contingency plan in the event of an electrical outage was a large back-up generator on site. He stated that, overall, he was happy doing bus'mes~ in SW Riverside County and that he would be willing to be a contact person for other companies contemplating relocating to this area. He declined any EDC information, Mr. Kupka did attend the EDC's recent quarterly luncheon as a guest of Keith Johnson, and would call thn EDC if he needed any assistance. , Southern California Funding - gon Nater reported that he had set up a visit with lohn McRae for February 19, 2002 at 11:00 am. · Agrisp~t - Kcith ~ohnson set up a meeting between Febmmy 14~ and the next Business Relations meeting. · Goal Progress Repor~ · Gary Youmans announced that visits and phone interviews in the seventh month of the fiscal year were as follows: 27 visits ~ 3 points cacti + 33 phone interviews ~ 1 points each ~- 60 v~sitffcalis ~114 points YTD VISIT PHONE POINTS Goal 27 33 114 Actual 14 4 46 Variance -13 -29 - 68 Business Relations Committee Meeting Minutes - February 7, 2002 Page 3 of 3 Binders Returned · Dick turned in Blue Binder g4, Keith turned in Binder #3, Stevie turned in Binder #2, New Committee Assienments · Carmen Hill was assigned Binder ~4, and Gary was reassigned Blue Binder #2. · Strategic Visits - Chemicon International and PFC Unlimited. EDC News.aud,.Other Information, EDC Beard Update - Gary Youmans reported that the golf tournament was moved to June 27~ and requested donations; he would be hosting a fun&raiser for Darrell Issa on February 22'~ at the Karl Strauss Brewery Restaurant in Cadsbad; he reported the status on the CALED Award for the Bus'mess Relations committee; Jim O'G'rady suggested sending the C^I.~.D package to the Board; the EDC luncheon was excellent and well a~ended. · Eeonnmie Alliance Update - Stevie Field reported that '(heir CD ROM was approved for final; ARCH Aluminum Glass was looking to relocate - lead flora the EDC', Stevie would attend the MDM trade show; a bioteeh manufacturer contact fi-om a recent trade show had an imerest in 20,000 square fee~ in the region; Alliance to brand the area as a te~h valley and to solicit businesses in San Diego; Ron Nater explained marketing plan directives were needed to establish a manufacturing Center of Excellence; there would be a large, 15-page supplement highlighting the region in the September 2002 issue of California CEO magazine; Baywood Interiors was interested in an EDC membership. · Cily, Conn~ & Chamber Updates - C/0) of Temecula - Jim O'Grady reported that Outdoor Channel was a national program, but Adelphia Cable was unable to carry it locally; Adelphia could have infrastructure ~pgrac~s within six months to carry the Outdoor Channel locally; the City would host a DeveIopers' meeting; the City had developed a new promotional brochure; the annual Rod Run would be held the weekend of February 16e' & 17~", and all local hotels were booked; The Press-Enterprise would be hosting the Employer of the Year event; San Diego Business Magazine published an employer survey of high teeh employ, ecs - $0% live in San Diego. ¢i~ ofMurrieta - Rex Oliver reported the City appea~ed to be under COnstruction; 900 acres of commercial/industrial land was available; an auto mall would be going in on the former Double Eagle golf property; the City had met the State's requirement for an affordable housing element; infrastructure improvements on lumper Stree'~ were in process; Lowes Home Improvement was under construction; Kohls was in planning. M~rrrleta Chamber o.f Corameree - Rex Oliver announced and distributed an Inside Murrieta e-mail; the Chamber's golf tournament would be held August 23'~ at the SCGA course; Murrieta Town Square construction was ahead of schedule. Teraee~la l/all~ C~amber of Commerce -Alice Sullivan reported that Ron Bradley was the new Chair; Guidant asked the Chamber to speak with their employees on relocation; Installation Dinner was February 23a: Roundtables and Ambassador Breakfasts were going well; State of the City would be held on March 21, 2002; January had 43 new members with a total of 1,255 members. La~e El~i)~or~ Valle~ Chamber - No report available. ~Adjoe.rnment The meeting adjourned at 10:08 am. ECONOMIC ALLIANCE City of Lake ELdnexe 130 So,Ih Ma~n Street Lake Elsinore, CA92000 TO: Marlene Best Jim O'Grady Lori Moss ~200~¢,~-2~24 Assistant City Manager Assistant City Manager Assistant City Manager F,xl~127'~2 City of Lake Elsinore City of Temecula City of Murrieta FROM: Stevie Field ~y~M,.~. Economic Development/Marketing Coordinator 2~28~a~¢~ DATE: March 11, 2002 19~2400 SUBJECT: SOUTHWEST RIVERSIDE COUNTY MONTHLY MARKETING UPDATE Dear Partners: 43200 B~si~ess ~ar~ (~ Please consider this an update on the marketing activities for the Alliance as required in the Temec~l~.CA92500 Southwest Riverside County Marketing for Business Attraction Agreement. Leads: A total of 88 leads were generated in the month of February. There were 78 leads from the MD&M trade show in Anaheim, three referrals, one from Expansion Management; five from ~.~ IEEP leads and one lead from CTTCA. On behalf of the Alliance, I met with two companies who are interested in possible 27447 Enterprise CircleWest Suite 101 expansion to SWRC. Arch Aluminum and Glass, based in Florida, came to SWRC to tour 7,~.c, 2z500 specific locations. We toured four different sites ranging in size from 50,000 sq. ft. to over ~¢0~0 100,000 sq. ft. Leon Silverstein, President, stated he would be in contact in the next few Fax: tg09} 6066040 weeks to let me know what they have decided. The second meeting was with Invetech, a biotechnology company based in Australia. I met Richard Stephens, Director of Business Development, at the MD &M trade show in Anaheim. Although Richard stated that they are considering downtown San Diego, they have not yet ruled out SWRC. I will keep you informed of the progress of these visits. Approximately 65 calls and/or follow- ups were made on recent and past leads. Consultinq Ron and I are currently working on our goals and objectives for year 2002-2003. A year in review and new marketing plan will be provided to the partners in April. Ron and I have sent out the final round of biotech letters for Orange County and Los Angeles County. As we continue to call on these companies, we are preparing the letter for Northern California. We will also be focusing on the venture capitalists both locally and up north. A letter will be sent with a follow-up phone call in hopes of an appointment to better educate the VC's on SW RC. Trade Shows On behalf of the Alliance, Ron and I attended the MD& M trade show'February 5- 7 in Anaheim, CA. As mentioned in the February update, there were several leads from biotechnology and bio-medical companies interested in the San Diego region. I am continuing to contact these companies. Web-site/GIS I have called each partner individually to inform him/her that the EDA will be paying the full $6,000 for the County GIS information needed for GIS Planning. Anatalio has sent emails regarding certain information needed to complete this project, such as property report variables, color, etc. Any input or recommendations are helpful and encouraged. If you would like to share some of the GIS information you have learned while going through the process, please feel free to contact me. I have placed on the agenda for March, the suggestion of a GIS committee. We can discuss this idea further at our March meeting. Ad-series Information regarding the recommendation for award of the proposal will be forwarded to the ad series committee by Monday, March 11th. We will discuss the selected agency and ideas at the Alliance meeting in March. Sprinqtime event I am in the process of contacting the "hot" leads as well as the broker community to gage the interest in the springtime event. Once we have a better idea of attendees, I will start working with Diane and the EDC regarding sponsorships. Please bring any ideas and/or suggestions with you to our meeting on March 27th. On an ongoing basis, I attend the following meetings: SWRC Manufacturer's Council Temecula/Murrieta Group Business Relations Committee SWRC EDC LE EDC 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 Marketing/Economic Development Coordinator Copy: Brad Hudson Robin Zimpfer Sarah Mundy Robert Moran Teresa Gallavan INLAND EMPIRE ECONOMIC PARTNERSHIPECONOMIC DEVELOPMENT www. leep.com REAL ESTATE SUCCESSES (The IEEP reports monthly on significant real estate transactions that occurred with or without the assistance of IEEP, in order to provide leads to our members.) Stremicks Heritage Foods LLC, a producer of extended shelf life dairy and nondairy products, has leased 88,970-square-feet of industrial space at 1100 South Etiwanda in Ontario. The signing of this temyear lease is, valued at approximately $5.4 million. Len Santoro of CB Richard Ellis-Ontario represented the lessor, CalWest Industrial Properties LLC, in this deal. Source: Co-Star Calico Brands, an impoder and distributor of consumer products, has expanded its operations leasing 228,423-square-feet of space in the Ontario Ridge Commerce Center located at the southeast corner of Haven Avenue and Mission Blvd. Terms of the transaction were not disclosed. Mark Kegans, Roger Rhoades, and Ron Washle of Grubb & Ellis Company represented the lessor, Ridge Realty Group, and Jeff Smith with Lee & Associates-Ontario represented the lessee in this transaction. Construction has begun on an Arrowhead Mountain Spring Water bottling plant on the Morongo Indian Reservation. The plant, which is expected to begin operations this summer, will employ 260 people and create 1,800 jobs throughout the Inland Empire. The venture will supplement Arrowhead's Ontario bottling plant that has been operating at full capacity for two years. Source: The Sun Graco Children's Products Inc., a maker of juvenile products such as strollers, swings and car seats, plans to expand its distribution operations in Hesperia closing its East Coast facility. The expansion is expected to create approximately ten new jobs within two years and will add an additional 36,000 square feet to their existing site located at 8787 Caliente Road. Source: Daily Press American Showa, a Japanese company that makes and distributes shock absorbers for racing motorcycles is moving its Torrance facility into 7,514-square-feet of space at 1235 Graphite Drive in Corona and will employ about six technicians. Source: The Business Press Mark Christopher Chevrolet Inc. has purchased 7.5 acres at 1947 convention Center Way to house all vehicle models sold by the auto center, with an emphasis on its commercial trucks. About 15 to 20 people will be hired to work at the new site, which is expected to be fully operating in about a month. Source: The Business Press CALENDAR ITEMS To register online for SBDC events: w~vw. iesbdc.org February 12, rig, 26: "Develop Your Plan For Success", this three-week, comprehensive seminar provides a solid basis for creating your business plan. This seminar is being held from 9 a.m. to 12 p.m. at the Inland Empire SBDC, 1157 Spruce St., Riverside. Cost is $40. For more information contact Melanie Cote at 909.781.2345. February 20: "Get the Tax Facts" straight from the source! This one-day workshop is being presented by an enrolled agent from 9 a.m. to 3 p.m. in San Bernardino, free of charge. For more information contact Melanie Cote at 909.781.2345. February 21: Know your numbers! The "Go Figure" seminar is being held from 9 a.m. to 12 p.m. in Rancho Cucamonga, free of charge. This Entrepreneurial Finance and Accounting seminar will give you a basic overview of accounting and finance principles for a small business. For more information call 909.466.6244. February 21: The "QuickSuccess with QuickBooks Accounting Software (Intermediate/Advanced-Part II) is being held from 6 p.m. to 9 p.m. in Victorville. Cost is $25. For more information call 760,951.1592. February 26: The "Business Community Workshop" will introduce attendees to the vast contracting opportunities offered by the State of California. This workshop is being offered at the Inland Empire SBDC, 1157 Spruce St. Riverside from 6 p.m. to 8 p.m., free of charge. For more information call 909.466.6244. February 27: The "Business Community Workshop" will introduce attendees to the vast contracting opportunities offered by the State of California. This workshop is being offered from 9:30 a.m. to 11:30 a.m., free of charge. For more information call 909.466.6244. February 28: The U:S. Small Business Administration (SBA) and banking personnel are presenting the "SBA Loans and How to Get One" seminar in Palm Springs from 9 a.m. to 12 p.m. Cost is $15. For more information call 760.864.1311. March 12, 19, 26: "Develop Your Plan For Success", this three-week, comprehensive seminar provides a solid basis for creating your business plan. This seminar is being held from 6 p.m. to 9 p.m. at the Inland Empire SBDC, 1157 Spruce St., Riverside. Cost is $40. For more information contact Melanie Cote at 909,781.2345. March 5: What you don't know can hurt you! "Payroll Tax" is a seminar presented by the California Employment Development Department (EDD) and the IRS from 9 a.m. to 3 p.m. in Palm Springs, free of charge. For more information call 760,864.1311. March 6: "The Fundamentals of Electronic Commerce" is a comprehensive seminar specially designed for small business owners who desire websites that truly benefit the company and provide a return on investment. This seminar is being held from 9 a.m. to 12 p.m. in Victorville. Cost is $20. For more information call 760.951.1592. CHECK US .OUT IEEP ACTIVITY REPORT JANUARY Business Development - noted three leads and 22 inquiries year to date. The Inland Empire Film Commission (IEFC) - registered 101 total days of film activity and 248 requests for locations, with three permits issued in San Bernardino County, one issued in Riverside County, 12 permits issued for the BLM San Bernardino County and two issued for the US Forest Depadment for an economic impact of $2,429,000. Small Business Development Center (SBDC) - reported the retention of six jobs for an economic impact of $14,530,500. The SBDC counseled 233 clients for 610 client hours, and conducted two training events with 38 attendees. A~tendees at the recent Inland Empire Economic Partnership's (IEEP) '16tn Annual Prasentation Dinner' were captivated by the voice of Sere-Lynn Walde of Cai State San Bernardino singing the National Anthem and God Bless America; dazzled by the magic of The Great Alexander Raguzi; and entertained by the witty humor of Bob Wolf, Germania Construction, as Master of Ceremonies. The event, which drew 200 plus people, reflected on the successes of 2001 and spoke to the visions of 2002 as well as recognizing the efforts of past Officers and introducing the new Officers and Board of Directors. We would like to welcome the new IEEP Officers and Board of Directors for 2002: Chairman: George Reyes, Best Best & Krieger LLP First Vice Chairman: Mark Ostoich, Gresham, Savage, Nolan & Tilden Second Vice Chair & Treasurer: Russ Moore, Community Bank Secretary & Chair Economic Development: Marcia McQuern, The Press-Enterprise Assistant Treasurer: Dave Harris, Ernst & Young LLP Tim Andersen, Citizens Business Bank Wendy Mattioli, The Business Press James Appleton, PhD, University ef Redlands Marcia McQuem, The Press-Enterprise Ann Atkinson, Center Chevrolet/Mazada of San Bernardino William Miller, California Speedway Donald F. Averill, San Bernardino Valley College Tony Mize, Native Building Corporation Mar~ha Badger, Southern California Logistics Airport Russell M. Moore, Community Bank Joseph Barr, Swenson Corporation April Morris, ,~ssociated Engineers, Inc. Maurice A. Calderon, Arrowhead Credit Union Bill Nietschmann, Bank of America W. Augustus Cheatham, MSW, Loma Linda University Medical Center James B. O'Grady, City of Temecula Dwight Cromie, Altek Media Group Mark Ostoich, Gresham, Savage, Nolan & Tilden Linda Daniels, City of Rancho Cucamonga Kevin Palmer, City of Riverside Arnold Dickson, Southern California Gas Co. David Patterson, Wells Fargo Bank, N.A. Paul Eamhart, Lee & Associates-Ontario Rick Phillips, Southern California Gas Co. Al Fabiano, Lee & Associates-Riverside George M Reyes, Best Best & Krieger LLP Maryetta Ferre, City of Grand Terrace Bob Ridzak, Clear ChanneI-KGGI Radio Henry Garcia, City of Rialto Al Sabsevitz, Verizon Suzan Gilliam, County of San Bernardino Jeff Sceranka, Enterprise Funding Corporation Jim Gourley, The Arrowhead Group Denny Shoreff, Crown Prii3ters ~ Bob Gray, The Sun - San Bernardino County David Slawson, Eastern Municipal Water District Linda B. Guillis, City of Moreno Valley Supervisor John Tavaglione, County of Riverside Supervisor Dennis Hansberger, County of San Bernardino Phil Thomison, United Parcel Service Dave Harris, Ernst & Young LLP Gary Van Osdel, City of San Bernardino Gregg Hassler, Apple One Employment Services Sean Varner, Varner, Saleson & Brandt John Husing, PhD, Economics & Politics, Inc. Alan D. Wapner, City of Ontario · Albert Karnig, PhD, California State University, San Bernardino David H. Warren, PhD, University of California, Riverside Norman King, San Bernardino Associated Governments (SANBAG) Jack Wyatt, Strategic Communications Keith Lee, County of San Bernardino Robin Zimpfer, County of Riverside EDA SAVE THE DATE... 5th ANNUAL GOLF CLASSIC The Inland Empire Economic Partnership (IEEP) will be holding its "5th Annual Golf Classic" at the Arrowhead Country Club located at 3433 N. Parkside Drive, San Bernardino, on Monday, April 22, 2002, from 11:00 a.m. to 8:00 p.m. For more information, reservations, or sponsorship opportunities, please contact Margie Oswald at 909.890.1090 ext. 222 or moswald~,ieep.com. Golf Ball Sponsor: Shirt Sleeve Sponsors: The City of Victorville Best Best'& Krieger LLP Golf Cart Sponsor: The Gas Company ~ A Sempra Energy Company The City of Hesperia Golf Towel Sponsor: Riverside Physicians Network 2002 Travel Planning O Conference o.~UTI'IENTIC, ~'T~f~,rERSf~. ~ALIF'ORNIA, DIEGO NORTH CONVI:NTION ~ VISITOKS ~UKE^U 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: Mamh 26, 2002 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 February, 2002. MOACTRPT CAPITAL IMPROVEMENT PROJECTS Monthly Activity Report February / March 2002 Prepared By: Amer Attar Submitted by: William G. Hughes Date: March 26, 2002 PROJECTS UNDER CONSTRUCTION 1. Murrieta Creek Crossing Between Winchester and Rancho Cafifornia Road - Low-flow Crossing at Via Montezuma This project will construct a low-flow crossing of Murrieta Creek connecting Diaz and Del Rio at Via Montezuma. In addition, this project will rehabilitate the street of Via Montezuma. This project is complete. Recording a conservation easement is in progress for the mitigation of the disturbed area. It went to City Council for approval and signature on March 5, 2002 and was then sent to the County of Riverside for recordation. 2. City Maintenance Facility Alterations, Phase II1 This project will modify the existing two story masonry block building to accommodate a new second floor of office space over the existing two-story maintenance bay, including the installation of an elevator, and two new second floor restrooms. Building modifications are complete. The project was accepted and Notice of Completion was filed at the March 5th Council meeting. 3. Margarita Road Widening, Pauba Road to Dartolo Road This project will widen Margarita Road from Pio Pico to Dartolo Road and re-landscape the medians from De Portola to SR 79 South. Included with this project is the pavement rehabilitation of Phase I/(Panba Road to Pio Pico. This project is complete. The acceptance and the Notice of Completion will be going to the April 9 City Council meeting. 4. Senior Center Expansion The expansion will include an addition of 3000 square feet to the existing building. The expansion will be for recreational, office, and meeting purposes. It will include the addition of 3000 square feet of building area for recreational, office and meeting purposes. Project is substantially complete. Contractor is to install various doorway modifications upon delivery of hardware per final change order request by City. 5. Chaparral High School Swimming Pool A 25-yard x 25-meter pool will be built at Chaparral High School. The facility will include a smaller recreation pool component and a bathhouse with locker room facilities, restrooms and showers. Spray-type play equipment will be included as an element in the base construction bid. The equipment room is nearly finished. The buildings are being stucco'd and the roof and interiors am being completed. The pool deck and deck drain system is nearly finished. The poles for the competition lights were set by a helicopter. R:~vl onthlyActivityReport\ClP~2002~Febraary.doc 6. Emergency Generator - City Hall & City Yard This project will install an emergency generator for City Hall. Automatic transfer switch installed, work progressing on screen walls and generator pad. Contractor is also completing as much pre-wiring as possible. Generator was delivered and set in place. 7. Margarita Road Widening, Phase I (Interim), Pauba Road to Plo Pico This project will widen Margarita Road on an interim bases between Pauba Road and Plo Pico. As a result, Margarita Road will have four lanes throughout City limits. The pre-construction meeting is scheduled for March 27, 2002. R.J. Noble is the contractor and should begin construction within two weeks of the pre- construction meeting. 8. Long Canyon Detention Basin 5-yr Habitat Maintenance Under this project, the Long Canyon Detention Basin will be planted and m~intained for five years. This project is complete. Plant establishment period is underway. 9. 1-15 Northbound On-Ramp Widening at Winchester Road This project will re-stripe westbound Winchester Road from Ynez Road to I-15 northbound on-ramp to allow for a better flow of traffic. This project will re-stripe Westbound Winchester Road from Ynez Road to 1-15 Northbound on-ramp to allow for a better flow of truffle. The work for this project is complete. Caltruns has accepted the work and the Notice of Completion was presented to the City Council on Februa~ 26, 2002. 10. Pala Road Improvements, Phase I- (Widening to accommodate four lanes from Pala Road Bridge to Wolf Valley) and Traffic Signals Modifications at Loma Linda, and at Wolf Valley Pala Road Improvements, Phase I, will give Pala Road two lanes in each direction (58 feet in width) from the Pala Road Bridge to the Pechanga Casino. It includes re-striping the entire length. Pala Road Phase I. In addition, the two traffic signals at Loma Linda and at Wolf Valley will.be modified to accommodate the road interim widening. This project is currently out for public bids and the construction contract will be awarded at the March 26 Council meeting. PROJECTS BEING ADVERTISED FOR BIDS NONE PROJECTS IN DESIGN 1. Pala Road Improvements - Phase II (79 South to Pechanga Road) This project will widen Pala Road to its ultimate width from the Pala Road Bridge to Pechanga road. Plan check comments (70% Submittal) were returned to the consultant. Work is proceeding on the remainder of the design. RCFC&WCD has approved the Wolf Creek Drainage Basin Hydrology Study prepared by Lohr Associates,/nc. with respect to hydrology only. A letter is expected from RCFC & WCD the week of March ! 8, 2002. Hydrology studies upstream of Wolf Creek have been approved by RCFC & WCD. 2 R:WiomhlyActivityReport\CIP~2002~ebruary.doc 2. Winchester Road Widening Between Enterprise Circle and Jefferson This project will add a right turn lane from Eastbound Winchester to Southbound Jefferson, starting at Enterprise Circle. O'Malley Engineering Corporation is upgrading design survey data for additional options in the design. Design is to restart again the week of 3/18/02. 3. Rancho California Road Bridge Widening Over Murrieta Creek This project will widen Rancho California Bridge over Murrieta Creek to provide four additional traffic lanes. 90% drawings were submitted March 7th and are currently being reviewed by staff. Processing for right of way and environmental requirements are anticipated to be completed by May 2002. 4. 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. Architect is finishing the final plans. A separate parcel is being created for the library (Plat & Description) for bond purposes. City hired a grant underwriter. Utility services construction will be coordinated with Pauba Road, Phase 1I Street Improvements. 5. Pauba Road Improvements - Phase II (Margarita Road to Showalter Road) This project will widen Panba Road from Showalter to just west of Margarita Road to its ultimate width. 100% design plans and specs were submitted to the City for review. Plans were sent to all utilities on 3/18/02 and all utility issues are being addressed. Work is being coordinated with the library project. 6. Murrieta Creek Bridge - Overland Drive Extension to Diaz 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 received comments regarding revisions to the negative declaration. Staff is reviewing Phases 2, 3 & 4 design costs prior to council submittal. 7. New Temecula Sports Complex A new 40+ Acres sports complex will be built on Pala Road at Wolf Valley. The new location of the complex is on Pala Road, near Wolf Valley. The soils report indicated substantial and costly removals. Staff is evaluating options on preparing the site or choosing a different site. The location of the new sports complex is dependent upon the approval of the Amendment to the Specific Plan. 8. Fire Station - Wolf Creek Site A full service fare station will be constructed in the Wolf Creek development area. Contractor is to make the initial submittal to Building and Safety for plan check by the end of March. 9. 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. Anticipated design completion is scheduled for April 2002. 3 R:hMonthlyActivityReport\Cll~2002\February.doc 10. Rancho California Road Median Modifications at Town Center Thc 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 95% complete and is currently in the plan check process. Bidding is scheduled for April 2002. 11. 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 in the process of being done. In-house design is 90% complete. 12. Landscaping and Sidewalk On 79 South (Front Street to Pala Road) The project consists of the design and construction of new sidewalk, landscaping, and irrigation along State Route 79 South between Pala Road and Old Town Front Street. The design process in underway and the 30% design plans are expected to be sent to the City by the end of March. 13. Alignment Study for Murrieta Creek Bridge Between Winchester Road and Temecula's City Limits and Diaz Road Extension This study will determine the alignment and location of the Murrieta Creek crossing between Winchester Road to 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, 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. 14. Bridge Barrier Rail Upgrade, Rainbow Canyon Road over Pcchanga 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. Kick off meeting for the design was held on Jan. 15, 2002. Simon Wong Engineering developed "as-builts" for the existing bridges and submitted the Barrier Concepts Report. The City has reviewed the report and provided comments and direction to Simon Wong Engineering. 15. Fire Station - Wolf Creek Site A fire station will be built at the Wolf Creek Site. Contractor is to make the initial submittal to Building and Safety for plan check by the end of March. 16. Community Theatre This project will create a community theatre at the old Mercantile building in downtown Temecula. The Contractor Pre-Qualification process for the Mercantile Seismic Retrofit Project is complete. Acceptance of the qualified contractors and approval for Advertisement to Bid the project is scheduled for the March 26, 2002, Council meeting. (Community Theatre) Preliminary design is underway. 4 R:~vl onthlyActivityRepoffiC IPX2002~ebr uary.doc 17. Children's Museum This project will constmct a 7,500 square foot children's museum. The consultant submitted 50% plans. Staffs made comments and the consultants are addressing those comments. Plans, specifications and estimates are nearing completion. The architect will be delivering the shell improvement plans to the City on March 26, 2002. 18. City Maintenance Facility Modifications (Parking Lot) Under this project, a security fence will be installed between the existing maintenance facility and the western side of Ci'ty 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 11/i2/01. Research on existing base maps for the proposed area and as-builts for the existing security fence near the maintenance facility is complete. Design is in progress. 19. Vail Ranch Park (Near Pauba Valley School) - Add Amenities This project will add amenities, including play equipment to the recently annexed Vail Ranch Park. The Community Services Commission approved the Vail Ranch Park Site "C" Master Plan on February 11, 2002. The Master Plan will go to City Council for approval on March 26, 2002. The design will begin shortly after that. RHA Landscape Architects/Planners Inc. will be the design firm. PROJECTS IN THE PLANNING STAGE 1. 1-15/SR 79 Interchange - Project Study Report (PSR) This project will modify the I-15/SR 79 South Interchange to accommodate projected future traffic. City staff met with Caltrans concerning Value Engineering Analysis Report on March 11, 2002. Staffcommented on the preliminary report provided by Caltrans during this meeting. The City is waiting for the final Value Engineering Analysis Report from Caltrans. 2. Cherry Street Interchange - Project Study Report (PSR) This project will construct an interchange between Winchester Road Interchange and the 1-15/I-215 split. The Project Study Report (PSR) is expected to be approved by the Federal Highway Administration (FI-Y~A) and Caltrans in March 2002. Project will be constructed in different phases. City started the acquisition process for one parcel. An appraisal Report for an additional parcel is expected the week of March 25th. Staff is working with Caltrans to advertise for Consultants to do the Project Report (PR) and the Plans, Specifications and Estimate (PS&E). 3. Pedestrian Bridge - SR79 North at Nicolas Road City met with Caltrans and sent a letter at their request to initiate this project. Caltrans responded in a letter that the bridge does not meet their warrents and that they will not support and allow its construction. Staff is currently working on the preparation of a feasibility study. 5 R:~vlonthlyActivityRepo~t\CIPL2002~February,doc 4. Pavement Management System Update The project will establish a pavement management program that will provide an ongoing schedule of needed repairs and provide data that will be used to prepare budget estimates required to complete the scheduled work. GIS links, AutoCAD review, and updates to MicroPAVER are included in the total program. Approximately 40% of the City has been surveyed. 5. Pavement Rehabilitation Program - FY 2001/2002 This project will rehabilitate various streets as part of the annual pavement rehabilitation programs. A list of streets to be rehabilitated is being developed. 6. 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. Public Works is currently reviewing project processes and documents. An RFP process to hire the consultant to design the project will start soon after. 7. Rancho California Sports park ADA Access and Shade Structure Design and construct concrete ADA walkways to the remaining ball fields 3,4,5,7,8. Install two shade picnic/seating areas adjacent to the snack bar building. (Scope of work & funding is being revised by TCSD.) 8. School Site ADA Improvements 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. (Scope of work is being revised by TCSD.) 9. John Warner/Santiago Road Assessment District - Hydrology Study 10. Citywide A.C. Repairs - FY2001-02 11. Slurry Seal Program - FY2001-02 PROJECTS THAT ARE SUSPENDED OR ON-HOLD 12. Pujol Street Sidewalk Improvements - Phase II Project is on hoM. 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. 13. 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. This 6 R:~V!onthlyActivityl~epor t\C IPX2002~Febraary.doc project may be done by a developer. 14. 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 proposed Project Study Report for Cherry Street Interchange. The study shows that this bridge may have to be removed in the future to accommodate the Cherry Street Interchange. This project is suspended indefinitely. 7 R:XlVlonthlyAc~vityReport\CiP~2002kFebruary.doc MEMORANDUM TO: Bill Hughes, Director of Public Works/City Engineer FROM: g~ Brad Buren, Maintenance Superintendent DATE: March 4, 2002 SUBJECT: Monthly Activity Report - February, 2002 I II The following activities were performed by Public Works Department, Street Maintenance Division in-house personnel for the month of February, 2002: I. SIGNS A. Total signs replaced B. Total signs installed 35 C. Total signs repaired II. TREES A. Total trees trimmed for sight distance and street sweeping concerns 6 III. ASPHALT REPAIRS A. Total square feet of A. C. repairs 1.644 B. Total Tons IV. CATCH BASINS A. Total catch basins cleaned 275 V. RIGHT-OF-WAY WEED ABATEMENT A. Total square footage for fight-of-way abatement - I~ - VI. GRAFFITI REMOVAL A. Total locations ?0 B. Total S.F. 1.733 VII. STENCILING A. ' 0 ' New and repainted legends B. - 0 - LF. of new and mpainted red curb and striping Also, City Maintenance staff responded to 86... service order requests ranging from weed abatement, tree trimming, sign repair, A.C, failures, litter removal, and catch basin cleanings. This is compared to 51 service order requests for the month of January, 2002. The Maintenance Crew has also put in 301 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 February, 2002 was } 73~721.47 compared to ~ 56~024.00 for the month of January. 2001. Account No. 5402 $ 14,643.00 Account No. 5401 $ 20,918.00 Account No. 999-5402 $ - 0 - cc: Ron Parks, Deputy Director of Public Works Ali Moghadam, Senior Engineer - (ClPFFraffic) Greg Butler, Senior Engineer (Capital Improvements) Amer Attar, Senior Engineer (Capital Improvements) Jerry Alegria, Senior Engineer - (Land Development) STREET MAINTENANCE CONTRACTORS The following contractors have performed the following projects for the month of February, 2002 DATE DESCRIPTION TOTAL COST ACCOUNT STREET/CHANNEL/BRIDGE OF WORK SIZE CONTRACTOR; MONTELEONE EXCAVATING Date: 02/14/02 PALA ROAD CHANNEL REMOVAL OF TUMBLEWEEDS FROM SURROUNDING CHANNELS # 5401 TOTAL COST $ 4,990.00 CONTRACTOR: RENE'S COMMERCIAL MANAGEMENT Date: 02~02 CITYWIDE VARIOUS LOCATIONS REMOVAL OF TRASH, DEBRIS AND TUMBLE- WEEDS IN CITY'S KO.W & STREETS DUE TO # 5402 HIGH WINDS TOTAL COST $10,000,00 Date: 02/05/02 MARGARITA DESILTING POND MECHANICAL WEED ABATE AND REMOVAL OF TRASH & DEBRIS FROM ENTIRE SITE # 5401 TOTAL COST $ 6,575.00 CONTRACTOR: BECKF. R ENGINEERING Date: 02/07/02 MARGARITA DESILTING POND REGRADE & COMPACT SLOPES, REPAIR EXISTING DRAINAGE STRUCTURES, HYDRO- # 5401 SEED SLOPES TOTAL COST $ Date: 02/21/02 WINCHESTER AT DENDY REPAIR RIBBON BARRICADES INCLUDING POST & RAILS DE PORTOLA E/O BUTTERFIELD # 5402 TOTAL COST $ 4,643.00 TOTAL COST ACCOUNT 85401 $ 20,918.00 TOTAL COST ACCOUNT /~402 $14,643.00 TOTAL COST ACCOUNT 899-5402 -0- CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DMSION SIGNS MONTH OF FEBRUARY, 2002 DATE LOCATION WORK COMPLETED 02/01/02 VINEYARD AT CHENIN BLANC REPLACED S.N.S. 02/04/02 NICHOLAS ROAD AT ROR1PAUGH ROAD REPLACED S,N,S. 02/04/02 CORTE SALAMANCA AT CAI.I,R ESPINOZA REPLACED S.N.S. 02/06/02 41002 COUNTY CENTER DRIVE REPLACED LIBRARY SIGN 02/06/02 DE PORTOLA, MEADOWS AND CAMPANULA REPLACED 24 R-26-81 COMBOS 02/11/02 crrYwIDE "WIND STORM 2002" REPAIRED 11 SIGNS 02/11/02 20088 YNEZ REPLACED P,.2 "45" 02/I 1/02 BUTTERFIELD STAGE ROAD AT DE PORTOLA REPLACED R-1 02/11/02 MARGARITA AT DARTOLO REPLACED R-18-2, W-17 02/11/02 VAIL RANCH PARKWAY AT CINON DRIVE REPLACED R-1 02/12/02 BARGIL AT VAIL BROOK REPLACED S.N~S. 02/12/02 CITYWIDE "WIND STORM 2002" REPAIRED $ SIGNS 02/13/02 crrYwIDE "WIND STORM 2002" REPAIRED 8 SIGNS 02/14/02 crrYW]DE "WIND STORM 2002" REPAIRED 23 SIGNS 02/15/02 PROMENADE CHARDONNAY AT lA SERENA REPAIRED R-1 02119/02 CAI.I.~ REDONDELA AT CORTE SAQUNITO REPAIRED W-66 & W-65 02/19/02 RANCHO WAY AT BUSINES PARK DRIVE REPAIRED W-56, TYPW 02/19/02 SOLANA WAY EAST OF YNEZ nqSTAIJ.RD 18 R-26 02/19/02 SOLANA WAY AT MOTOR CAR PARKWAY REPLACED W-41 02/20102 ~ LOMA AT RANCHO VISTA REPLACED R-2-30 02/20/02 PALA ROAD AT WOLF VA~.~.RY ROAD REPLACED R- 18 & R26 02/20/02 RiVERTON AT CALLE CHAPOS REPLACED 4 R-26 02/20/02 MARGARITA AT RANCHO VISTA REPLACED R-26-81 COMBO 02/20/02 SOLANA AT YNEZ INSTALL R-26 02/20/02 CAIJ.~.PI~ACOLADAAT LA SERENA REPLACED 4 R-26-81 COMBOS DATE LOCATION WORK COMPLETED 02/21/02 LA SERENA AT MARGARITA REPLACED 2 R-26-81 COMBOS, W-74 02/22702 SONOMA AT CULBERTSON REPAIRED S.N.S. 02/25/02 MARGARITA AT NORTH GENERAL KEARNEY INSTAI.I.RD 5 HABITAT SIGNS ' 02/25/02 WINCHESTER AT DENDY INSTAl J.~D 5 TYPE N & W57 02225/9,2 DE PORTOLA E/O BUTTER~'~ ~:~ .r~ STAGE ROAD INSTAl J.RD 3 TYPE N 02/25/02 AGENA AT SOUTHERN CROSS REPLACED R-1 & 2 S.N.S. 02/25/02 VIA LAS CHACRAS AT CAH.R PANTANO REPLACED 2 S.N.S, 02]26/02 SOUTH & NORTH ENDS OF MORAGA REPLACED 2 TYPE N 02/26/02 WINCHESTER AT ZEVO REPAIRED S.N.S. 02/26/02 .MIRA LOMA AT CALLE VIOLETA REPLACED W65 02227/02 ,40473 CAI.I,F, MEDUSA REPAIRED W-17 02127/02 END OF WINCHESTER REPLACED 5 TYPE N 02/27/02 VIA SALTO AT VIA CORDOBA REPLACED W-17 02/27/02 LOMALINDA AT CORTE ANTIGUA REPLACED S.N.S. 02/27/02 PALA AT IvIUIRFIF. I .r) REPLACED DELINEATOR 02/27/02 RAINBOW CANYON ROAD REPLACED R-2-40 02/27/02 CAMPANULA AT CAMINO INSTAH.~,D R-10 & R-7 02/27/02 PUJOL AREA REPAIRED 6 SIGNS 02/28/02 WINCHESTER AT REMINGTON REPLACED W- 17 02/28/02 WINCHESTER SOUTH OF DENDY REPLACED W-I 7 TOTAL SIGNS REPLACED 69 TOTAL SIGNS INSTA ! ,I J~,D 35 TOTAL SIGNS REPAIRED 6) CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION GRAFFITI REMOVAL MONTH OF FEBRUARY, 2002 DATE LOCATION WORK COMPLETED 020102 27338 IE~RSON REMOVED 36 S.F. OF GRAFFITI 02/01/02 WOLF STORE ROAD AT APRIS ROAD REMOVED 117 S.F. OF GRAFFITI 02t04/02 30872 ANDREWS WAY REMOVED 63 S.F. OF GRAFFITI 02/06/02 42101 MORAGA REMOVED 29 S.F. OF GRAFFITI 02/07/002 VAIL RANCH PARKWAY AT VALENTINO REMOVED 30 S.F. OF GRAFFITI 02/08/02 VAIL RANCH AREA REMOVED 64 S.F. OF GRAFFITI 02/11/02 FRONT STREET AT ALBERTOS REMOVED 100 S.F. OF GRAFFITI 02/11/02 FRONT ST. AT TEXACO, DEL RIO PLAZA (19 LOCATIONS) REMOVED 322 S.F. OF GRAFFITI 02/11/02 VAIL RANCH PARKWAY AT CINON DRIVE REMOVED 2 S.F. OF GRAFFITI 02/12/02 HWY. 79 SO. AT FRONT STREET REMOVED 20 S.F. OF GRAFFITI 02/13/02 BUTTERFIELD STAGE PARK REMOVED 10 S.F. OF GRAFFITI 02/13/02 WELTON & BUTTERFI~J.D STAGE ROAD REMOVED 4 S.F. OF GRAFFITI 02/14/02 VAIL RANCH AREA (7 LOCATIONS) REMOVED 205 S.F. OF GRAFFITI 02/15/02 YUKON AT LONG VAI.I.~Y WASH REMOVED 3 S.F. OF GRAFFITI 02/19/02 VAIL RANCH PARKWAY AT CINON DRIVE REMOVED 26 S.F. OF GRAFFITI 02/I 9/02 CR & R DUMPSTER CITY YARD REMOVED 194 S.F. OF GRAFFITI 02/20/02 VIA RIO TEMECULA AT COUNTRY GLEN REMOVED 4 S.F. OF GRAFFITI 02/21/02 ! MORAGA AT MARGARITA REMOVED 4 S.F. OFGRAFFITI 02/21/02 RANCHO CALIF. RD. ~ BUTTERFIELD STAGE (5 LOCATIONS) REMOVED 38 S,F. OF GRAFFITI 02/21/02 HWY. 79 SO. AT MARGARITA REMOVED 4 S.F. OF GRAFFITI 02/21/02 MARGARITA AT NO. GENERAL KEARNEY (4 LOCATIONS) REMOVED 130 S.F. OF GRAFFITI 02/22/02 PALOMA DEL SOL REMOVED 30 S.F. OF GRAFFITI 02/25/02 VIA LA VIDA AT VIA RENATE REMOVED 12 S.F. OF GRAFFITI 02/26/02 6TM STREET AT MERCEDES REMOVED 6 S.F. OF GRAFFITI 02/26/02 MARGARITA SOUTH OF NORTH GE~ KEARNEY REMOVED 102 S.F. OF GRAFFITI DATE LOCATION WORK COMPI,ETED 02/26/02 29605 SOLANA REMOVED 7 S.F, OF GRAFFITI 02/27/02 VIA CORDOBA AT VIA CORONADO REMOVED 2 S.F. OF GRAFFITI 02/27/02 PUJOL AT CREEK (11 LOCATIONS) REMOVED 160 S.F. OF GRAFFITI 02/28/02 29705 SOLANA REMOVED 9 S.F. OF GRAFFITI TOTAL S.F. GRAFFITI REMOVED 1~733 TOTAL LOCATIONS 70 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION RIGHT-OF-WAY TREE TRIMMING MONTH OF FEBRUARY, 2002 DATE LOCATION WORK COMPLETED 02/19/02 SOLANA WAY AT MOTOR CAR PARKWAY TRIMMED 2 R.O.W. TREES 02/20/02 LA SERENA AT CALLE PI~A COLADA TRIMMED 2 R.O.W. TREES 02/27/02 RAINBOW CANYON ROAD TRIMMED 2 R.O.W. TRF. ES TOTAL R.O.W. TREES TRIMMED _~6 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION CATCH BASIN MAINTENANCE MONTH OF FEBRUARY, 2002 DATE LOCATION WORK COMPLETED 02/04/02 AREA #4 CLEANED & CHECKED 39 CATCH BASINS 02/05/02 HWY 79 SO. CLEANED & CHECI<ED 34 CATCH BASINS 02/06/02 AREA ~4 CLEANED & CHECKED 26 CATCH BASINS 02./07/02 PALOMA DEL SOL CLEANED & CHECKED 51 CATCH BASINS 02/11/02 RANCHO CALIF. RD. EdO YNF~ "WIND STORM" CLEANED & CHECKED ] 5 CATCH BASINS 02/12/02 CITYWIDE "WIND STORM 2002" CLEANED & CHECKED 13 CATCH BASINS 02/13/02 CITYWIDE "WIND STORM 2002" CLEANED & CHECKED 24 CATCH BASINS 02/14/02 crrYWIDE "WIND STORM 2002" CLEANED & CHECKED 12 CATCH BASINS 02/17/02 CITYWIDE "RAIN" CLEANED & CHECKED 30 CATCH BASINS 02/21/02 DE PORTOLA AT BUTTERFIELD STAGE ROAD CLEANED & CHECKED 4 CATCH BASINS 02/27/02 CITYWIDE CLEANING CLEANED & CHECKED 27 CATCH BASINS TOTAL CATCH BASINS CLEANED & CH~CKED 275 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION ASPHALT (POTHOLES) REPAIRS MONTH OF FEBRUARY, 2002 DATE LOCATION SCOPE OF WORK S.F. TOTAL TONS 02835/02 CABRILLO NORTH OF JOHN WARNER R&R A.C. 185 4 02/07/02 CITY HALL TRENCH LINE PLACE A~C. 75 2 02/07/02 PALAROADAT VIAEDUARDO A.C. OVERLAY 118 2.5 02/08/02 JIe~PERSON SOLVrH OF OVERLAND POTHOLES 30 TEMP A.C. 02/20/02 RANCHO CALIFORNIA ROAD EAST OF YlqEZ R&R A.C. 300 6.5 02/21/02 MF..ADOWVIEW AREA A.C. OVERLAY 386 3.5 02/25/02 RANCHO CALIFORNn~ ROAD EAST OF YNEZ R&R A.C. 125 6.5 02/26/02 RANCHO CALIFORNIA ROAD EAST OF YNEZ R&R A.C. 150 6.5 02/2702 RANCHO CALIFORNIA ROAD EAST OF YNEZ A.C. CAP 275 3.5 TOTAL S.F. OF REPAIRS 1.644 TOTAL TONS 25 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION SERVICE ORDER REQUEST LOG MONTH OF FEBRUARY~ 2002 DATE DATE WORK REC'D LOCATION REQUEST COMPLETED 02/01/02 38278 CAI.I.~ CERIATO TREE TRIMMING 02/I)1/02 02/02/02 YUKON AT MARGARITA TREE TRIMMING 02/02/02 02/04/02 30872 ANDREWS WAY GRAFFITI 02/04/02 02/04/02 27620 COMMERCE CEiXrl'ER DRIVE BAD ODOR 02/04/02 02/05/02 44024 QUIET MEADOW W/~I ,I .gT IN STORM DRAIlg 02/05/02 02/05/02 MEADOWVIEW H.O.A. EROSION CONTROL 02/05/02 02/06/02 32458 ENRIQUETA CIRCLE TREE TRIMMING 02/06/02 02/06/02 41501 REISLING COURT DRAINAGE CONCERN 02/06/02 02/07/02 YNEZ NORTH OF SANTIAGO ('NEW STREET) SNS 02/08/02 02/08/02 VIA LA VIDA 1000' EAST OF MARGARITA UTILITY BOX 02/12/02 02/10/02 BUTTERFIELD STAGE ROAD AT DE PORTOLA STOP SIGN DOWN 02/10/02 02/10/02 45735 CLUBHOUSE TREE DOWN 02/11/02 02/10/02 31066 DEL REY ROAD TREE DOWN 02/10/02 02/11/02 END OF DE PORTOLA EAST OF BUTTERF]~ D STAGE GUARD RAIL 02/11/02 02/11/02 43088 VOLTERRA STREET TUMBLEWEEDS 02/11/02 02/11/02 PALA ROAD AC REPAIR 02/11/02 02/11/02 CINON AT VAIL RANCH PARKWAY STOP SIGN MISSING 02/11/02 02/11/02 CORTE CAMARA AT VIA VASQUEZ STREET NAME SIGN 02/11/02 02/11/02 BARGIL COURT AT VAIL BROOK STREET NAME SIGN 02/12/02 02/11/02 31865 CAMINO MAREA DEBRIS ON SIDEWALK 02/12/02 02/11/02 45270 ESPLENDOR COURT TUMBLEWEEDS 02/I 2/02 02/11/02 44544 BOGUTA WAY TREE DOWN 02/11/02 02/11/02 44558 ALIGIHCHI WAY TREE DOWN 02/11/02 02/11/02 41078 SWEET SHADE TREE BRANCHES 02/11/02 02/11/02 MEADOWS PARKWAY AT LEENA WAY SIGN DOWN 02/11/02 02/11/02 44925 MACHON FENCE DOWN 02/11/02 02/11/02 33034 ROMERO DRIVE TREE LEANING 02/12/02 DATE DATE WORK REC'D LOCATION REQUEST COMPLETED 02/11/02 33034 ROMERO DRIVE TREE LEANING 02/12/02 02/11/02 VIA DEL CAMPO AT RANCHO VISTA STREET NAME SIGN DOWN 02/11/02 02/11/02 CORTE CABRERA AT VIA RICCI TREE DOWN 02/11/02 02/11/02 31841 VIA TAFALLA TREE DOWN 02/12/02 02/I 1/02 31281 HIAWATHA COURT TREE DOWN 02/11/02 02/11/02 45254 ESPLENDOR COURT TUMBLEWEEDS 02/12/02 02/11/02 30194 PECHANGA DRIVE TREES DOWN 02/11/02 02/12/02 30989 LOMALINDA ROAD TUMBLEWEEDS 02/12/02 02/12/02 45680 CLUBHOUSE TREE 02/12/02 02/12/02 MERLOT COURT AT CHENIN BLANC STREET NAME SIGN 02/12/02 02/12/02 43124 BRIDGE WAY TUMBLEWEEDS 02/13/02 02/12/02 31742 CORTE PADRERA TREE 02/13/02 02/12/02 44994 MUIRFIELD DRIVE TUMBLEWEEDS 02/13/02 02/12/02 31864 CORTE MObrl~crro TREE DOWN 02/13/02 02/12/02 26933 CALLE PALMAS TREE BRANCHES 02/12/02 02/12/02 31683 CORTE ROSARIO TREE BILMqCI-IES 02/12~2 02/13/02 MORAGA BTWIq. MARGARITA & RANCHO CALIF. RD. CHANNEL 02/14/02 02/13/02 30482 SPICA COURT TREES 02/14/02 02/13/02 MARGARITA AT CHESTNUT CONES 02/13/02 02/13/02 42611 REMORA TREE DOWN 02/13/02 02/13/02 TEMECULA HIGH SCHOOL TREE 02/14/02 02/13/02 C,~ I.!.E CORTEZ AT JEFFERSON STREET NAME SION 02/13/02 02/13/02 DE PORTOLA AT VIA ANGELUS STOP SIGN 02/13/02 02/14/02 39634 RUSTIC GLEN P.C.C. REPAIRS 02/14/02 02/15/02 42015 KAFFIRBOOM STORM DRAIN PLUGGED 02/15/02 02/15/02 30452 DANAUBE COURT ROOT PRUNING 02/15/02 02/18/02 STARLIGHT RIDGE DEBRIS PICK-UP 02/18/02 02/18/02 ASTEROID AT MILKY WAY DEBRIS PICK-UP 02/18/02 02/19/02 42215 HUMBER P.C.C. REPAIR 02/19/02 02/19/02 29585 CpJ J.17 VIOLETA TREE TRIMMING 02/19/02 DATE DATE WORK REC'D LOCATION REQUEST COMPLETED 02120/02 43384 VIA ANGELES GUARD RAIL REPAIR 02/20/02 02/20/02 VIA DOS PICOS DEBRIS PICK-UP 02/20/02 02/22/02 SONOMA LANE AT CULBERTSON LANE S.N.S. REPAIR 02/22/02 02/22/02 30091 lvIILANO ROAD TREE TRIMMING 02/22/02 02/22/02 29776 NIGHTVIEW CIRCLE ROOT PRUNING 02/22~2 02/22/02 43613 E. FLORIDA STREET MAINT. QUESTION 02222/02 02/22/02 30989 LOMALINDA DEBRIS PICK-UP 02/22/02 02/22/02 32755 HISLOP WAY SLURRY SEAL 02/22/02 02/22202 30584 VIA NORTE WATER CAN LID BROKEN 02/22~2 02/22/02 42855 SAGE ROAD TRENCH FAILURE 02/22/02 02/22/02 29797 VIA LAS CHACRAS S.N.S. REPAIR 02222/02 02/22/02 30656 SOUTHERN CROSS S.N.S. REPAIR 02122/02 02/22/02 30237 CORTE CANTAN1A DEBRIS PICK-UP 02/22/02 02/25/02 41904 HUMBER TREE TRIMMING 02/25/02 02/25/02 29779 CALLE PANTANO S.N.S. REPAIR 02/25/02 02/25/02 29789 VIA LAS CHACRAS S.N.S. REPAIR 02/25/02 02/25/02 39576 DIEGO DRIVE TRENCH FAILURE 02/25/02 02/25/02 45680 CLUBHOUSE STUMP GRINDING 02/25/02 02/25/02 32381 CORTE PALACIO LIFTED SIDEWALK 02/25/02 02/25/02 39576 DIEGO DRIVE MISSING S.N.S. 02225/02 02/26/02 45680 CLUBHOUSE STUMP GRINDING 02/25/02 02/26/02 40217 CAMINO CAMPOS VERDES DEBRIS PICK-UP 02/26/02 02/26/02 42072 PASEO SONRISA DEL SOL POTHOLES 02/26/02 02/26/02 40462 CALLE MEDUSA SIGN REPAIR 02/26/02 02/27/02 DENDY AT WINCHESTER TRENCH FAILURE 02/27/02 02/27/02 30241 CABRILLO CHANNEL CLEANING 02/27/02 02/28/02 RANCHO CALIFORNIA ROAD AT YNEZ POTHOLES 02/28/02 02228/02 31645 VIA CORDOBA MISSING BLUE RPM 02/28/02 02/28/02 30650 CABRIIJ.O DEBRIS PICK-UP 02/28/02 TOTAL SERVICE ORDER REQUESTS 8~