Loading...
HomeMy WebLinkAbout031604 CC AgendaIn compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (909) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements tc 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 16, 2004 — 7:00 P.M. At approximately 9:45 P.M., the City Council will determine which of the remaining agenda items can be considered and acted upon prior to 10:00 P.M. and may continue all other items on which additional time is required until a future meeting. All meetings are scheduled to end at 10:00 P.M. 6:00 P.M. - Closed Session o Sections: 922-032- Street a Rfraa4l props O'Grz 2. Confe Sectil west'. 921-0 039 -' price are S 3. Conf, Cod the City Council pursuant to Government 'Code >perty- negotiator pursuant to Government Code g the acquisition of real' properties located at APN- 8 (north side of Main Street and east of Mercedes 7 (east side of Mercedes Street and north of Second irties are theCityof Temecula and Dixon and Great ation are the price and terms of payment of the real City/Agency negotiators are Shawn Nelson, Jim and John Meyer. ice with real ,property-> negotiator pursuant to -Government <Code 54956.8 concerning the acquisition of real, properties located on the 11Qn 1111umvi1, atin %j,vraay, ano tsm riugnes-. e pursuant to Government ter of pending litigation :sed: 1)'Rancho- Business >t to one matter of the City Attorney has is a significant exposure > and circumstances and R:Wgenda\031604 involving the City. The following case will be3 V. County of Riverside (RCIP litigation — Riversi No.402766). Public Information concerning, existing litigation=betwf may acquired by reviewing the public documents hi >ussed: '1) City of Temecula, County Superior Court Case> the City and various parties by the City Clerk. Next in Order: Ordinance: No. 2004-03 Resolution: No. 2004-24 CALL TO ORDER: Mayor Mike Naggar Prelude Music: Musician's Workshop Youth Choirs — Esther Dernbach, Director Invocation: Pastor Larry Fisher of First Baptist Church of Temecula Flag Ceremony: Boy Scout Troop No. 412 ROLL CALL: Comerchero, Roberts, Stone, Washington, Nagger PRESENTATIONS/PROCLAMATIONS Certificate of Achievement for attaining Eagle Scout rank — Brendan Paul Lopez 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. R:\Agenda\031604 2 CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the City Council request specific items be removed from the Consent Calendar for separate action. 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 Minutes RECOMMENDATION: 2.1 Approve the minutes of February 10, 2004; 2.2 Approve the minutes of February 24, 2004. 3 Resolution approving List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 04-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 City Treasurer's Report RECOMMENDATION: 4.1 Receive and file the City Treasurer's Report as of January 30, 2004. 5 Children's Museum RECOMMENDATION: 5.1 Approve an appropriation of $170,000 from Capital Reserves to the Children's Museum. R:\Agenda\031604 6 Children's Museum Cooperative Agreement RECOMMENDATION: 6.1 Approve the Cooperative Agreement between the City of Temecula and Friends of the Temecula Children's Museum for the support of the Temecula Children's Museum and operation of the Children Museum Gift Shop; 6.2 Approve the Children's Museum Logo and Images License Agreement. 7 Eden Software Support Agreement RECOMMENDATION: 7.1 Authorize the purchase of annual Financials and Payroll Software Support from Eden Systems, Inc. for the total amount of $25,415,25. 8 Purchase and Sale Agreements for property located in Old Town RECOMMENDATION: 8.1 Adopt a resolution entitled: RESOLUTION NO. 04-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS FOR CERTAIN REAL PROPERTY LOCATED ALONG THE NORTH SIDE OF MAIN STREET, EAST OF MERCEDES (APN 922-032-021, -022, AND -028) IN THE CITY OF TEMECULA 8.2 Adopt a resolution entitled: RESOLUTION NO. 04-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS FOR CERTAIN REAL PROPERTY LOCATED ALONG THE EAST SIDE OF MERCEDES NORTH OF SECOND STREET (APN 922-042-007) IN THE CITY OF TEMECULA 8.3 Authorize the expenditure in an amount not to exceed $723,000 for acquisition, escrow, closing costs , appraisal, soils testing, and related fees. R:Wgenda\031604 N and March 22, 2004, and delegate authority to issue a Special Events/Street Closures Permit to the Direi;tor of Public Works/City Engineer RECOMMENDATION: 9.1 Adopt a resolution entitled: RESOLUTION NO. 04-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING TEMPORARY STREET CLOSURE OF THIRD STREET BETWEEN OLD TOWN FRONT STREET AND MURRIETA CREEK FOR THE ANNUAL OLD TOWN BLUEGRASS FESTIVAL EVENT SCHEDULED FOR MARCH 21 AND 22, 2004, AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURES 10 Amendment No. 2 to Annual Citywide Routine Maintenance Contract RECOMMENDATION: 10.1 Approve Amendment No. 2 to the Annual Citywide Routine Maintenance Contract with Imperial Paving Company, Inc. for an amount of $50,000.00 and authorize the Mayor to execute the amendment. 11 All -Way Stop Control — La Serena Way and Meadows Parkway RECOMMENDATION: 11.1 Adopt a resolution entitled: RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ESTABLISHING AN ALL -WAY STOP CONTROL AT THE: INTERSECTION OF LA SERENA WAY AND MEADOWS PARKWAY 12 Acquisition Agreement between the City of Temecula and the Jubela Family Trust - French Valley Parkway/1-15 Overcrossing & Interchange — Protect No. PW02-11 RECOMMENDATION: 12.1 Ratify the PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF TEMECULA AND ERNEST JOE AND ETHYL B. JUBELA FAMILY TRUST for the acquisition of certain real property APN 910-262-004 in the amount of $662,545.00 plus the associated escrow fees and supercede the originally approved agreement in the amount of $611,580.00. R:\Agenda\031604 13 Completion and Acceptance of the Intersection Traffic Monitoring System and Traffic Signal Interconnect — Proiect No. PW99-05 RECOMMENDATION: 13.1 Accept the construction of the Intersection Traffic Monitoring System and Traffic Signal Interconnect — Project No. PW99-05 — as complete; 13.2 File the Notice of Completion, release the Performance Bond, and accept a one- year Maintenance Bond in the amount of 10% of the contract amount; 13.3 Release the Materials and Labor Bond seven months after the filing of the Notice of Completion if no liens have been filed. 14 Payment of Property Taxes for Business Park Drive property south of City Hall (APN 921- 020-079-6) RECOMMENDATION: 14.1 Ratify the payment of back property taxes on the Business Park Drive property south of City Hall (APN 921-020-079-6) in the amount of $114,562.25. 15 Revised Deposit Agreement — Proposed Roripaugh Ranch Community Facilities District RECOMMENDATION: 15.1 Adopt a resolution entitled: RESOLUTION NO. 04-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING AMENDED AND RESTATED DEPOSIT/REIMBURSEMENT AGREEMENT — RORIPAUGH RANCH RECESS CITY COUNCIL MEETING TO SCHEDULED MEETINGS OF THE TEMECULA COMMUNITY SERVICES DISTRICT, THE CITY OF TEMECULA REDEVELOPMENT AGENCY, AND THE TEMECULA PUBLIC FINANCING AUTHORITY R:Wgenda\031604 Next in Order: Ordinance: No. CSD 2004-01 Resolution: No. CSD 2004-04 CALL TO ORDER: President Chuck Washington ROLL CALL: DIRECTORS: Comerchero, Naggar, Roberts, Stone, Washington 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 ageinda 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 2 Minutes RECOMMENDATION: 1.1 Approve the minutes February 24, 2004. RECOMMENDATION: 2.1 Accept the construction of Children's Museum Building Shell Improvements — Project No. PW02-01CSD as complete; 2.2 File the Notice of Completion, release the Performance Bond, and accept a one- year Maintenance Bond in the amount of 10% of the contract; 2.3 Release the Materials and Labor Bond seven months after the filing of the Notice of Completion if no liens have been filed. R:\Agenda\031604 DIRECTOR OF COMMUNITY SERVICES REPORT GENERAL MANAGER'S REPORT BOARD OF DIRECTORS' REPORTS ADJOURNMENT Next regular meeting: Tuesday, March 23, 2004, 7:00 PM, City Council Chambers, 43200 Business Park Drive, Temecula, California. R:\Agenda\031604 CALL TO ORDER: ROLL CALL: PUBLIC COMMENTS Next in Order: Ordinance: No. RDA 2004-01 Resolution: No. RDA 2004-05 Chairperson Jeff Comerchero AGENCY MEMBERS: Naggar, Roberts, Stone, Washington, Comerchero A total of 15 minutes is provided so members of the public may address the Redevelopment Agency on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the Board of Directors on an item not on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items, a "Request to Speak" form must be filed with the City Clerk Prior to the Board of Directors addressing that item. There is a five (5) minute time limit for individual speakers. Anyone wishing to address the Board of Directors should present a completed pink "Request to Speak" form to the City Clerk. When you are called to speak, please come forward and stall: vour name and address for the record. CONSENT CALENDAR: Minutes RECOMMENDATION: 1.1 Approve the minutes of February 24, 2004. Disposition and Development Agreement and Focused Environmental Impact Report for the Temecula Education Center RECOMMENDATION: 2.1 That the City Council adopt a resolution entitled: R:Agenda\031604 RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE TEMECULA EDUCATIONAL COMPLEX PROJECT, THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND AGK GROUP, LLC, FOR THE DEVELOPMENT OF THE TEMECULA EDUCATIONAL COMPLEX, AND RELATED ACTIONS, AND ADOPTING FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, APPROVING A STATEMENT OF OVERRIDING CONSIDERATIONS, AND APPROVING A MITIGATION MONITORING AND REPORTING PROGRAM IN CONNECTION THEREWITH FOR THE TEMECULA EDUCATIONAL COMPLEX TO BE DEVELOPED ON APPROXIMATELY 31.1 ACRES OF PROPERTY LOCATED AT THE NORTHWESTERN CORNERS OF DIAZ ROAD AND DENDY LANE 2.2 That the City Council adopt a resolution entitled: RESOLUTION NO. 04_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND AGK GROUP, LLC, FOR THE TEMECULA EDUCATION COMPLEX 2.3 That the Redevelopment Agency adopt a resolution entitled: RESOLUTION NO. RDA 04-_ A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND AGIK GROUP, LLC, FOR THE TEMECULA EDUCATIONAL COMPLEX EXECUTIVE DIRECTOR'S REPORT AGENCY MEMBERS' REPORTS ADJOURNMENT Next regular meeting: Tuesday, March 23, 2004, 7:00 PM City Council Chambers, 43200 Business Park Drive, Temecula, California. R:\Agenda\031604 10 Next in Order: Ordinance: No. TPFA 2004-01 Resolution: No. TPFA 2004-03 CALL TO ORDER: Chairperson Mike Nagger ROLL CALL: AGENCY MEMBERS: Comerchero, Roberts, Stone, Washington, Nagger PUBLIC COMMENTS A total of 15 minutes is provided so members of the public may address the Temecula Public Financing Authority on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the Board of Directors on an item not on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items, a "Request to Speak" form must be filed with the City Clerk Prior to the Board of Directors addressing that item. There is a five (5) minute time limit for individual speakers. Anyone wishing to address the Board of Directors should present a completed pink "Request to Speak" form to the City Clerk. When you are called to speak, please come forward and state your name and address for the record. CONSENT CALENDAR. Minutes RECOMMENDATION: 1.1 Approve the minutes of February 10, 2004. 2 Revised Deposit Agreement — Proposed Roripaugh Ranch Community Facilities District RECOMMENDATION: 2.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 04-_ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY APPROVING AMENDED AND RESTATED DEPOSIT/REIMBURSEMENT AGREEMENT — RORIPAUGH RANCH R:\Agenda\031604 11 EXECUTIVE DIRECTOR'S REPORT BOARD MEMBERS' REPORTS ADJOURNMENT R:\Agenda\031604 12 RECONVENE TEMECULA CITY COUNCIL COUNCIL BUSINESS 16 Diaz Road Realignment Project - Project No. PW95-27 - Resolution of Necessity — Rancho California Business Park Association (APN 921-020-075) RECOMMENDATION: 16.1 Hold a public hearing and take testimony from the members of the Rancho California Business Park Association or their representatives if they ask to be heard on issues A, B, C, and D set forth below regarding the proposed acquisition of the Covenants, Conditions, and Restrictions by condemnation for street improvement, road, and highway purposes in connection with the proposed Diaz Road Realignment Project; 16.2 Review the evidence stated and referred to herein and consider all the evidence, including any testimony received during the public hearing, prior to deciding whether to adopt a Resolution of Necessity; If the City Council finds, based on its consideration of the evidence contained and referred to in this staff report, the testimony and comments received during the public review and planning process, all other testimony that may be presented, and all other evidence and records pertaining to this matter, that the evidence warrants the necessary findings as to the proposed Resolution of Necessity, then staff recommends that the City Council, in the exercise of its discretion, and upon taking a separate vote on each proposed resolution: 16.3 Adopt a Resolution of Necessity and authorize and direct that eminent domain proceedings be filed to acquire the subject encumbrances; RESOLUTION NO. 04-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECU'LA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD 17 Diaz Road Realignment Project - Project No. PW95-27 - Resolution of Necessity — Morter Family Trust Property (APN 921-040-028) RECOMMENDATION: 17.1 Hold a public hearing and take testimony from the property owners or their representatives if they ask to be heard on issues A, B, C, and D set forth below regarding the proposed acquisition of the Morter Family Trust Property by condemnation for street improvement, road, and highway purposes in connection with the proposed Diaz Road Realignment Project; 17.2 Review the evidence stated and referred to herein and consider all the evidence, including any testimony received during the public hearing, prior to deciding whether to adopt a Resolution of Necessity; R:Wgenda\031604 13 If the City Council finds, based on its consideration of the evidence contained and referred to in this staff report, the testimony and comments received during the public review and planning process, all other testimony that may be presented, and all other evidence and records pertaining to this matter, that the evidence warrants the necessary findings as to the proposed Resolution of Necessity, then staff recommends that the City Council, in the exercise of its discretion, and upon taking a separate vote on each proposed resolution: 17.3 Adopt a Resolution of Necessity and authorize and direct that eminent domain proceedings be filed to acquire the subject property; RESOLUTION NO. 04-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD 18 Diaz Road Realignment Project - Project No. PW95-27 - Resolution of Necessity — Massie Family Trust Property (APN 921-020-039) RECOMMENDATION: 18.1 Hold a public hearing and take testimony from the property owners or their representatives if they ask to be heard on issues A, B, C, and D set forth below regarding the proposed acquisition of the Massie Family Trust Property by condemnation for street improvement, road, and highway purposes in connection with the proposed Diaz Road Realignment Project; 18.2 Review the evidence stated and referred to herein and consider all the evidence, including any testimony received during the public hearing, prior to deciding whether to adopt a Resolution of Necessity; If the City Council finds, based on its consideration of the evidence contained and referred to in this staff report, the testimony and comments received during the public review and planning process, all other testimony that may be presented, and all other evidence and records pertaining to this matter, that the evidence warrants the necessary findings as to the proposed Resolution of Necessity, then staff recommends that the City Council, in the exercise of its discretion, and upon taking a separate vote on each proposed resolution: 18.3 Adopt a Resolution of Necessity and authorize and direct that eminent domain proceedings be filed to acquire the subject property; RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD R:Wgenda\031604 14 19 Status Update - Senate Bill 87 (Hollingsworth) (At the request of the, entire City Council) RECOMMENDATION: 19.1 Provide direction to the City staff regarding Senate Bill 87 (Hollingsworth). An oral update will be provided to the City Council at the meeting. CITY MANAGER'S REPORT CITY ATTORNEY'S REPORT Next adjourned regular City Council meeting, Tuesday, March 23, 2004, at 7:00 P.M., City Council Chambers, 432,30 Business Park Drive, Temecula, California. R:Wgenda\031604 15 PROCLAMATIONS AND PRESENTATIONS R » a / � \ \ \\ s � • a � \ cn j\¥ 7 t ® &\2 N�t ƒ � � .§ � � ( � •� � u � u /k l /� 6 g 2 / §/ /k _kJ / § \ \ / k ITEM 1 ITEM 2 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL FEBRUARY 10, 2004 The City Council convened in Closed Session at 6:00 P.M. and in Open Session at 7:00 P.M., on Tuesday, February 10, 2004, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: 3 Councilmembers: Comerchero, Washington, and Naggar Absent: 2 Councilmember: Roberts and Stone It was noted by Mayor Naggar that Councilman Roberts was in Washington, DC on a lobbying trip for the City and that Councilman Stone was attending a campaign forum. PRELUDE MUSIC The violin music was provided by Sienna Naggar accompanied by Helen Miller. INVOCATION The invocation was given by Mayor Pro Tern Comerchero. ALLEGIANCE The flag ceremony was presented by Reverend Jerry Hangen of Grace Presbyterian Church. PRESENTATION/PROCLAMATIONS Certificate of Achievement to Reed Johnson Honoring Mr. Reed Johnson on his accomplishments as a professional baseball player, Mayor Naggar presented to him a Certificate of Achievement. Contributing his success to the hard work and dedication that was expected of him while at school, Mr. Johnson accepted the certificate with appreciation. Mayor Pro Tern Comerchero as well briefly commended Reed's family for their support of him. PUBLIC COMMENTS A. Ms. Katherine Runkle, 32090 Corte Bonilio, representing the Gardner Middle School PTSA, apprised the City Council and public of an upcoming Mystery Murder Fundraiser at the Ponte Winery to benefit the school's library on Friday, March 5, 2004, 6:00 to 10:00 P.M. B. Mr. Jim Mitchell, 31550 Sunningdale, representing the Temeku Hills Homeowners Association and Chairman of the Temeku Hills Candidate Forum Night, invited the public to the upcoming Candidate's Forum on Thursday, February 12, 2004, at 7:00 P.M., at the Temeku Hills Clubhouse, advising that Jeff Stone will be in attendance and that Jim Venable's attendance has not yet been confirmed. R:\Minutes\021004 CITY COUNCIL REPORTS A. Commending Mr. Mitchell on his efforts associated with the recent City Council Candidate Forum Night:, Councilman Washington thanked Mr. Mitchell for the organization of that event as well the upcoming event. Having been recently appointed to the Western Riverside Council of Governments (WRCOG), a position recently held by Mayor Pro Tern Comerchero, Councilman Washington expressed his desire to represent the City in the same professional and committed approach as provided by Mr. Comerchero and presented to him, on behalf of WRCOG, a plaque of appreciation for his dedicated service. B. Accepting the plaque with appreciation, Mr. Comerchero extended his appreciation to WRCOG. Mr. Comerchero wished his wife, Pat, a Happy Birthday. Commenting on the four newly instituted RTA commuter link routes from Temecula/Murrieta areas to various north and south transportation points, Mr. Comerchero advised that three of the four routes have been very successful; that RTA will be exploring why the Temecula to Oceanside link with commuter rail to downtown San Diego has not been as successful; that this particular route has a different fare structures because of its partnership with the North County Transit; and that the fare structure may be explored as well as a possible change in the route. Encouraging residents to partake in Comerchero advised of an upcoming Corps Wednesday, February 25, 2004, at 6:30 P.M. the Temecula Citizen Corps Program, Mr. meeting in the City Council Chambers, on C. Mayor Naggar reiterated his support of public participation in the Temecula Citizen Corps program. 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 Minutes RECOMMENDATION: 2.1 Approve the minutes of January 13, 2004. 3 Resolution approving List of RECOMMENDATION: 3.1 Adopt a resolution entitled: R:\Minutes\021004 2 RESOLUTION NO. 04-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 City Treasurer's F'.eport RECOMMENDATION: 4.1 Receive and file the City Treasurer's report as of December 31, 2003. 5 Retention Policy and Schedule Revisions RECOMMENDATION: 5.1 Adopt a resolution entitled: RESOLUTION NO. 04-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS AS PROVIDED BY SECTION 34090 OF THE GOVER14MENT CODE OF THE STATE OF CALIFORNIA, ESTABLISHING A RECORDS RETENTION PROCEDURE, AND REPEALING RESOLUTION NO. 92-17 6 Property Insurance Renewal RECOMMENDATION: 6.1 Approve the! City of Temecula Property Insurance Policy renewal with Chubb Insurance Company, Landmark American Insurance Company for the period of February 26, 2004 through February 26, 2005, in the amount of $97,138. 7 Fire Safety House Purchase RECOMMENDATION: 7.1 Approve the: purchase of the We Care Company Fire Safety Interactive Mobile Trailer for $39,306.97. 0 the Roripauah Ranch Specific Plan) RECOMMENDATION: 8.1 Approve Tract Map Nos. 29661-2, -3, and -4 in conformance with the conditions of approval; 8.2 Approve the Subdivision Improvement Agreement; RAMinutes\021004 3 8.3 Approve the Subdivision Monument Agreement and accept the Faithful Performance Bond, Labor and Material Bond, and Monument Bond as security for the agreements. nVvi nua n! Vai auu - ucn iy a ouc shown by Tract Map No. 14936 RECOMMENDATION: 9.1 Approve Parcel Map No. 31169 in conformance with the conditions of approval; 9.2 Approve the Subdivision Monument Agreement and accept the Monument Bond as security for ".he agreements. 10 First Amendment to Annual Citywide Routine Maintenance Contract 11 RECOMMENDATION: 10.1 Approve the first amendment to the Annual Citywide Routine Maintenance Contract with Rene's Commercial Management for an amount of $100,000.00 and authorize the Mayor to execute the amendment. RECOMMENDATION: 11.1 Approve Amendment No. 1 to the agreement with Vanir Construction Management, Inc. to provide professional construction management, material testing, and special inspection services in an amount not to exceed $418,036.00 and authorize the Mayor to execute the agreement; 11.2 Authorize the City Manager to approve amendments to the agreement not to exceed the contingency amount of $44,300 which is equal to 10% of the additive amounts of the original ;agreement of $24,980 and Amendment No. 1 of $418,036. 12 Award of Construction Contract for the Old Town Temecula Community Theater — Proiect No. PW02-23 RECOMMENDATION: 12.1 Award a construction contract for the Old Town Temecula Community Theater — Project No. PW02-23 to Tovey/Shultz Construction, Inc. in an amount of $7,168,000 and authorize the Mayor to execute the contract; 12.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $716,800 which is equal to 10% of the contract amount; 12.3 Accelerate the appropriation of budgeted funds in FY2004-2005 to FY2003-2004 in the amount of $3,035,000; RAMinutes\021004 4 13 14 12.4 Approve the transfer of $548,500 of Capital Project Reserves from the Old Town District Parking Lot to the Old Town Temecula Community Theater; 12.5 Approve an appropriation of $1,612,500 from General Fund Reserves to the Old Town Temecula Community Theater. (Considered under separate discussion; see pages 6-7.) RECOMMENDATION: 13.1 Accept the construction of the Pavement Rehabilitation Program 2002-2003 Rancho California Road between Margarita Road and Meadows Parkway Project, Project No. PW02-13, as complete; 13.2 Direct the City Clerk to file the Notice of Completion, release the Performance Bond, accept a one-year Maintenance Bond in the amount of 10% of the contract; 13.3 Direct the City Clerk to release the Materials and Labor Bond seven months after the filing of the Notice of Completion if no liens have been filed. RECOMMENDATION: 14.1 Approve an agreement with Richard Brady and Associates in an amount not to exceed $81,975.00 to provide design services for the City Maintenance Facility Expansion, Project No. PW03-06, and authorize the Mayor to execute the agreement; 14.2 Authorize the City Manager to approve amendments not to exceed the contingency amount of $8,197.50 which is equal to 10% of the agreement amount. 15 General Fund Advance for Fire Truck RECOMMENDATION: 15.1 Approve an advance of $724,804 from the General Fund for the purchase of the 100' Tractor Drawn Aerial Fire Truck. (Considered under separate discussion; see page 7.) 16 Acceptance of Grant Deed — Serena Hills Park RECOMMENDATION: 16.1 Approve Amendment No. 2 to the Subdivision Improvement Agreement for Tract 23209; R:\Minutes\021004 5 16.2 Authorize ai;ceptance of the Grant Deed for Serena Hills Park, located in the Shea Homes development at La Serena and Walcott Lane and direct staff to proceed with the necessary actions to cause the deed to be recorded. 17 Second Reading of Ordinance No. 04-02 — (Electrical Undergrounding) RECOMMENDATION: 17.1 Approve an ordinance entitled: ORDINANCE NO. 04-02 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING SECTION 15.04.090 TO THE TEMECULA MUNICIPAL CODE RELATING TO THE UNDERGROUNDING OF EXISTING AND PROPOSED ELECTRICAL, TELECOMMUNICATIONS, AND OTHER WIRES CARRYING BELOW 34KV CAPACITY WHICH PROVIDE DIRECT SERVICE OR IS ADJACENT TO PROPERTY BEING DEVELOPED MOTION: Mayor Pro Teem Comerchero moved to approve Consent Calendar Item Nos. 1-11, 13-14, and 16-17 (Item Nos„ 12 and 15 were pulled for separate discussion; see pages 6-7.) Councilman Washington seconded the motion and electronic vote reflected approval with the exception of Councilmembers Roberts and Stone who were absent. CONSENT CALENDAR ITEMS DISCUSSED UNDER SEPARATE DISCUSSION 12 RECOMMENDATION: 12.1 Award a construction contract for the Old Town Temecula Community Theater — Project No. PW02-23 to Tovey/Shultz Construction, Inc. in an amount of $7,168,000 and authorize the Mayor to execute the contract; 12.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $716,800 which is equal to 10% of the contract amount; 12.3 Accelerate the appropriation of budgeted funds in FY2004-2005 to FY2003-2004 in the amount of $3,035,000; 12.4 Approve the transfer of $548,500 of Capital Project Reserves from the Old Town District Parking Lot to the Old Town Temecula Community Theater; 12.5 Approve an appropriation of $1,612,500 from General Fund Reserves to the Old Town Temecula Community Theater. Director of Housing and Redevelopment Meyer presented the staff report (of record), noting that the Theater should be ready for occupancy in the Spring of 2005. For Mayor Naggar, City Manager Nelson confirmed that the City was able to finance this project through the refinancing of Redevelopment bonds, commending Finance Director Roberts, R:\Minutes\021004 6 Director of Housing and Redevelopment Meyer, and Community Services Director Parker on their efforts and the Public Works Department on its upcoming efforts associated with this project. Commending staff on its involvement with the refinancing of the Redevelopment bonds in order for the City to fully finance this project, Mayor Pro Tern Comerchero expressed his delight with the construction of the theater, noting that this project will be an extraordinarily rewarding project for many years to come. Thanking Director of Housing and Redevelopment Meyer on his efforts associated with this project, Councilman Washington as well relayed his excitement with the development of this project. Relaying his enthusiasm about the synergy this project will provide to Old Town, Mayor Naggar commented on the importance of this project to some children as is the construction of sports parks to other children and relayed his excitement with the development of this project. MOTION: Mayor Pro Tern Comerchero moved to approve the staff recommendation. The motion was seconded by Councilman Washington and the electronic vote reflected approval with the exception of Councilmembers Roberts and Stone who were absent. 15 General Fund Advance for Fire Truck RECOMMENDATION: 15.1 Approve an advance of $724,804 from the General Fund for the purchase of the 100' Tractor Drawn Aerial Fire Truck. Noting that no staff report were necessary, Mayor Naggar advised that he had simply pulled this item in order to apprise the public of the purchase of this fire truck, advising that the City will be reimbursed the purchase amount by the Roripaugh Ranch developer. MOTION: Mayor Pro Tern Comerchero moved to approve the staff recommendation. The motion was seconded by Councilman Washington and the electronic vote reflected approval with the exception of Councilmembers Roberts and Stone who were absent. At 7:32 P.M., the City Council convened as the Temecula Community Services District, the Temecula Redevelopment Agency, and the Temecula Public Financing Authority and at 7:38 P.M., the City Council resumE!d with regular business. COUNCIL BUSINESS 18 Donation to Temecula Chaparral High School Platinum Sound Band (At the request of Councilman Washington.) RECOMMENDATION: 18.1 Consider approval and appropriation of $2,500 to assist the Chaparral High School Platinum Sound Band in attending the National World War II Veterans' Parade and Memorial Dedication ceremonies in Washington, D.C. on May 29 through June 1, 2004. RAMinutes\021004 7 Presenting an overview of the proposed recommendation, Councilman Washington welcomed Mr. Greg Brown, 24709 Madison, Murrieta, representing the Chaparral High School Platinum Sound Band. Mr. Brown informed the City Council that the Sound Band, after its last year performance at the Fiesta Bowl, was invited to represent the State of California at the unveiling of the World War II Memorial in Washington, DC, Memorial weekend of 2004; that a full complement of 100 musicians (comprised of musicians from Chaparral and Temecula Valley High Schools and middle schools) will attend; and that the cost will be $1,000 per student. Although supporting this request, Mayor Pro Tern Comerchero requested that the implementation of a policy be established to address the handling of such requests during the City's next budget cycle: to ensure appropriate funding so that the City Council may honor as many as possible of such requests. Expressing his support of the recommendation, Councilman Washington commended the Sound Band on its accomplishments and noted that it will be an honor for the Band to represent the City, Riverside County, and the entire State in Washington, DC. MOTION: Mayor Pro Tern Comerchero moved to approve the staff recommendation. The motion was seconded by Councilman Washington and the electronic vote reflected approval with the exception of Councilmembers Roberts and Stone who were absent. CITY MANAGER'S REPORT No comment. CITY ATTORNEY'S REPORT City Attorney Thorson advised that as per the Brown Act, there were no items to report under Closed Session. ADJOURNMENT At 7:48 P.M., the City Council meeting was formally adjourned to a regular meeting on Tuesday, February 24, 2004, at 7:00 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] R:\Minutes\021004 8 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL FEBRUARY 24, 2004 The City Council convened in Closed Session at 6:00 P.M. and in Open Session at 7:00 P.M., on Tuesday, February 24, 2004, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: 4 Councilmembers: Absent: 1 Councilmember: Comerchero, Roberts, Washington, and Naggar Stone It was noted by Mayor Naggar that Councilman Stone was attending a community forum. PRELUDE MUSIC The violin music was provided by Eve Craig. INVOCATION The invocation was given by Ciera Saunders of Baha'i Community Church. ALLEGIANCE The flag ceremony was presented by Mayor Pro Tern Comerchero. NATIONAL ANTHEM The National Anthem was sung by Joelle James. PRESENTATION/PROCLAMATIONS Certificate of Appreciation to Joelle James Expressing how proud he is of Ms. James, Councilman Washington presented a Certificate to her and commended her on her role as a role model to the young adults and an inspiration to the adults. Citizen Corps Presentation by District Director Paule Honoring the City Council on the establishment of the Temecula Citizen Corps, District Director Paule presented a Plaque to the Mayor and relayed Congressman Issa's support of this program. Mayor Naggar reminded the public of the upcoming Temecula Citizen Corps meeting on Wednesday, February 25, 2004, in the City Council Chambers. Central Coast Productions Presentation Mr. Mike Madden of Central Coast Productions presented memorabilia to the Council of the upcoming Good Old Car Show; advised that the show is sold out; and that sponsorships have been outstanding. He thanked the City Council for its support and invited the Council and the public to attend this upcoming event. R:\Minutes\022404 PUBLIC COMMENTS A. In response to Mr. Joseph Terrazas' concern, representing the Wolf Valley Homeowners Association, Public Works Director Hughes commented on the status of the Pechanga Parkway expansion, noting the following: That a Community Facilities District has been formed as the primary funding source for the widening of Pechanga Parkway (six lanes from SR 79 south to Via Gilberto at which point it will transition to four lanes) That the existing design was planned to accommodate the Wolf Creek development, including the existing casino but that the current design would not include the casino expansion. Mayor Naggar noted, for Mr. Terrazas, that a meeting would be set with the homeowners association and staff to discuss the matter. B. Addressing the closing of a local hockey rink in Lake Elsinore, Mr. Mike Harrington, 41797 Green Tree Road, noted that the are no local rinks for the children and/or adults and relayed his desire for a rink in the City. C. Ms. Tomi Arbogast, 43221 Corte Cabrera, representing the Temecula Citizen Corps, further commented on tomorrow's Corps meeting at 6:30 P.M., in the City Council Chambers; advised that the City is the only City in the Nation to have such a program; apprised of Federal Emergency Management Agency's (F.E.M.A.) support of this program; encouraged public participation; and thanked the City Council, City staff, and the Public Traffic Safety Commission for its support. CITY COUNCIL REPORTS A. Mayor Pro Tern Comerchero reminded the viewing public that Election Day will be on March 2, 2004, and encouraged the residents to vote. Mr. Comerchero commended Councilman Washington on receiving the Citizen of the YearAward from the Temecula Valley Chamber of Commerce. B. Councilman Washington as well encouraged voter participation in the upcoming election; commented on an upcoming PTSA Mystery Theater Fundraiser for the Gardner Middle School library; and wished City Clerk Jones a Happy Birthday. C. Having attended another Indian Gaming Local Community Benefit Committee (SB 621) meeting, Councilman Roberts addressed the City's eligibility to qualify for certain funding and noted that he would keep the City apprised. Having received the Draft EIR/EIS of the California High Speed Rail Authority, Councilman Roberts requested that staff review the draft information and provide comments within the 90-day period. City Manager Nelson advised that Principal Planner Brown would be reviewing the information. R:\Minutes\022404 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 Minutes RECOMMENDATION: 2.1 Approve the minutes of January 27, 2004. 3 Resolution approving List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 04-16 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 2003-04 Mid -Year Budget Adjustments RECOMMENDATION: 4.1 Adopt a resolution entitled: RESOLUTION NO. 04-16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, AMENDING THE FISCAL YEAR 2003-04 ANNUAL OPERATING BUDGET 4.2 Adopt a resolution entitled: RESOLUTION NO. 04-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, REVISING THE SCHEDULE OF AUTHORIZED POSITIONS R:\Minutes\022404 3 5 Dalton Historic Building II (PA03-0711) 0 RECOMMENDATION: 5.1 Adopt a resolution entitled: RESOLUTION NO. 04-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A HEIGHT INCREASE OF SIXTEEN FEET AND ONE-STORY FOR PLANNING APPLICATION NO. PA03-0711, LOCATED AT THE NORTHWEST CORNER OF MERCEDES STREET AND FIFTH STREET, KNOWN AS ASSESSOR PARCEL NO. 922-024-014 Chaparral Center Expansion (Height Extensions) RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 04-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A HEIGHT INCREASE OF SIXTEEN FEET TEN INCHES AND ONE-STORY FOR PLANNING APPLICATION NO. PA03-0471, LOCATED AT 28461 OLD TOWN FRONT STREET, GENERALLY LOCATED ON THE WEST SIDE OF OLD TOWN FRONT STREET, APPROXIMATELY 150 FEET NORTH OF SIXTH STREET KNOWN AS ASSESSOR PARCEL NO. 922-026-022 RECOMMENDATION: 7.1 Approve the plans and specifications and authorize the Department of Public Works to solicit construction bids for the State Route 79 South Sidewalk and Landscape Improvement —Project No. PW01-02. RECOMMENDATION: 8.1 Approve the Construction Plans and Specifications and authorize the Department of Public Works to solicit construction bids for the Asphalt Crackfill Project — FY2003- 2004 — various streets — Project No. PW04-04. RAMinutes\022404 0 10 RECOMMENDATION: 9.1 Approve the Plans and Specifications and authorize the Department of Public Works to solicit construction bids for the Slurry Seal Project — FY2003-2004 — Project No. PW04-03. 11SD RECOMMENDATION: 10.1 Approve Amendment No. 4 to the agreement with Michael Brandman Associates to provide professional engineering services for the Pechanga Parkway Phase II Improvements, Project No. PW99-11, for an amount not to exceed $9,950.00, and authorize the Mayor to execute the agreement. 11 Records Destruction RECOMMENDATION: 11.1 Approve the scheduled destruction of certain City records in accordance with the City of Temecula approved Records Retention Policy. 12 Expenditure of Local Law Enforcement Block Grant (LLEBG) Funds RECOMMENDATION: 12.1 Approve the expenditure of Local Law Enforcement Block Grant Funds and local match funds in the amount of $35,866 for the purchase of police equipment. 13 Resolution of Support for Proposition No. 55 (At the request of Councilman Washington) RECOMMENDATION: 13.1 Adopt a resolution entitled: RESOLUTION NO. 04-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING PROPOSITION NO. 55 WHICH PROVIDES COMMUNITIES MATCHING STATE FUNDS TO BUILD NEW LOCAL SCHOOLS AND REPAIR SCHOOLS (Pulled for separate discussion; see page 6-7.) R:\Minutes\022404 14 Resolution of Support for Proposition Nos. 57 and 58 15 RECOMMENDATION: 14.1 Adopt a resolution entitled: RESOLUTION NO. 04-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING PROPOSITION NOS. 57 AND 58 WHICH SUPPORT BALANCING THE STATE BUDGET AND PREVENTING FUTURE DEFICITS (At the request of Mayor Naggar) =6161&lTif Oil -97TV042till 15.1 Adopt a resolution entitled: RESOLUTION NO. 04-22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING ASSEMBLY BILL 488 (PARRA) WHICH PROVIDES PUBLIC DISSEMINATION OF SEX OFFENDER INFORMATION PURSUANT TO MEGAN'S LAW SHALL OCCUR THROUGH AN INTERNET WEBSITE OPERATED BY THE DEPARTMENT OF JUSTICE (DOJ) (Pulled for separate discussion; see pages 7.) MOTION: Councilman Washington moved to approve Consent Calendar Item Nos. 1-12, and 14 (Item Nos. 13 and 15 were pulled for separate discussion; see pages 6-7.) Mayor Pro Tern Comerchero seconded the motion and electronic vote reflected approval with the exception of Councilman Stone who was absent. CONSENT CALENDAR ITEMS DISCUSSED UNDER SEPARATE DISCUSSION 13 Resolution of Support for Proposition No. 55 (At the request of Councilman Washington) RECOMMENDATION: 13.1 Adopt a resolution entitled: RESOLUTION NO. 04-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING PROPOSITION NO. 55 WHICH PROVIDES COMMUNITIES MATCHING STATE FUNDS TO BUILD NEW LOCAL SCHOOLS AND REPAIR SCHOOLS R:\Minutes\022404 Senior Management Analyst Adams presented the staff report (as per agenda material), advising that the School District has requested the City's support of Proposition No. 55. Addressing the importance of supporting this particular School Bond Measure, Councilman Washington advised that the funding to the District, through this proposition, would be utilized to complete the fourth high school in the City as well as other needed renovations/upgrades to existing schools. In closing, Mr. Washington noted that material with regard to this proposition may be attained from the Chamber of Commerce. MOTION: Councilman Roberts moved to approve staff recommendation. The motion was seconded by Mayor Pro Tem Comerchero and electronic vote reflected approval with the exception of Councilman Stone who was absent. 15 Support of Assembly Bill 488 (Parra) — Enhancement of Megan's Law and Public Information Dissemination (At the request of Mayor Naggar) RECOMMENDATION: 15.1 Adopt a resolution entitled: RESOLUTION NO. 04-22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING ASSEMBLY BILL 488 (PARRA) WHICH PROVIDES PUBLIC DISSEMINATION OF SEX OFFENDER INFORMATION PURSUANT TO MEGAN'S LAW SHALL OCCUR THROUGH AN INTERNET WEBSITE OPERATED BY THE DEPARTMENT OF JUSTICE (DOJ) Senior Management Analyst Adams presented the staff report (of record) Relaying his appreciation to the City Council for its support of these efforts, Mr. Rick Reiss, 43602 Modena Drive, commented on the information provided on the website of the City of San Jose and requested that Riverside County be able to provide same information such as name, address, picture, and criminal history of the high -risk sex offender. In response to Mr. Reiss' comment, Councilman Roberts requested that staff determine if there were any Senators in opposition to the proposed Assembly Bill and if there were, that lobbying efforts be initiated in an effort to obtain support. Although supporting the Assembly Bill as well as the proposed resolution, Mr. Roberts expressed concern with the proposed sunset clause date of July 1, 2010. Echoing Councilman Roberts' comment, Mayor Pro Tern Comerchero requested that the sunset clause date of July 1, 2010 be eliminated. MOTION: Mayor Pro Tern Comerchero moved to approve staff recommendation with the amendment to delete the July 1, 2010 sunset clause date. The motion was seconded by Councilman Roberts and electronic vote reflected approval with the exception of Councilman Stone who was absent. R:\Minutes\022404 At 7:48 P.M., the City Council convened as the Temecula Community Services District and the Temecula Redevelopment Agency and after a short recess, at 8:00 P.M., the City Council resumed with regular business. COUNCIL BUSINESS 16 Diaz Road Realignment Proiect. Proiect No. PW95-27. Resolution of Necessitv — RECOMMENDATION: 16.1 Hold a public hearing and take testimony from the members of the Rancho California Business Park Association or their representatives if they ask to be heard on issues A, B, C, and D set forth below regarding the proposed acquisition of the Covenants, Conditions, and Restrictions by condemnation for street improvement, road, and highway purposes in connection with the proposed Diaz Road Realignment Project; 16.2 Review the evidence stated and referred to herein and consider all the evidence, including any testimony received during the public hearing, prior to deciding whether to adopt a Resolution of Necessity; If the City Council finds, based on its consideration of the evidence contained and referred to in this staff report, the testimony and comments received during the public review and planning process, all other testimony that may be presented, and all other evidence and records pertaining to this matter, that the evidence warrants the necessary findings as to the proposed Resolution of Necessity, then staff recommends that the City Council, in the exercise of its discretion, and upon taking a separate vote on each proposed resolution: 16.3 Adopt a Resolution of Necessity and authorize and direct that eminent domain proceedings be filed to acquire the subject encumbrances; RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD 17 Diaz Road Realianment Proiect. Proiect No PW95-27 Recnlutinn of NPCPscity — RECOMMENDATION: 17.1 Hold a public hearing and take testimony from the property owners or their representatives if they ask to be heard on issues A, B, C, and D set forth below regarding the proposed acquisition of the Morter Family Trust Property by condemnation for street improvement, road, and highway purposes in connection with the proposed Diaz Road Realignment Project; R:\Minutes\022404 8 17.2 Review the evidence stated and referred to herein and consider all the evidence, including any testimony received during the public hearing, prior to deciding whether to adopt a Resolution of Necessity; If the City Council finds, based on its consideration of the evidence contained and referred to in this staff report, the testimony and comments received during the public review and planning process, all other testimony that may be presented, and all other evidence and records pertaining to this matter, that the evidence warrants the necessary findings as to the proposed Resolution of Necessity, then staff recommends that the City Council, in the exercise of its discretion, and upon taking a separate vote on each proposed resolution: 17.3 Adopt a Resolution of Necessity and authorize and direct that eminent domain proceedings be filed to acquire the subject property; RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD 18 Diaz Road Realignment Project, Project No. PW95-27, Resolution of Necessity — Massie Family Trust Property (APN 921-020-039) RECOMMENDATION: 18.1 Hold a public hearing and take testimony from the property owners or their representatives if they ask to be heard on issues A, B, C, and D set forth below regarding the proposed acquisition of the Massie Family Trust Property by condemnation for street improvement, road, and highway purposes in connection with the proposed Diaz Road Realignment Project; 18.2 Review the evidence stated and referred to herein and consider all the evidence, including any testimony received during the public hearing, prior to deciding whether to adopt a Resolution of Necessity; If the City Council finds, based on its consideration of the evidence contained and referred to in this staff report, the testimony and comments received during the public review and planning process, all other testimony that may be presented, and all other evidence and records pertaining to this matter, that the evidence warrants the necessary findings as to the proposed Resolution of Necessity, then staff recommends that the City Council, in the exercise of its discretion, and upon taking a separate vote on each proposed resolution: 18.3 Adopt a Resolution of Necessity and authorize and direct that eminent domain proceedings be filed to acquire the subject property; RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD RAMinutes\022404 City Attorney Thorson provided the staff report (as per agenda material). Further commenting on this project, Public Works Director Hughes noted the following: • That this project has been planned for approximately six years; • That because of concerns of accidents at the Rancho California Road/Business Park Drive intersection and because of the continual growth of the industrial park, a signal will be placed at Business Park Drive; that the placement of this signal, because of the existing signal at Diaz Road/Rancho California Road intersection, will actually compromise the integrity, volume, and capacity of the Rancho California Road/Old Town Front Street intersection; • That the new signal (Business Park Drive) is a needed signal but that it would not be desirous to compromise the integrity or capacity of Rancho California Road; therefore, a variety of capacity improvements have been started in an effort to improve this corridor, such as: o Install a signal at Business Park Drive/Rancho California Road o Realign Diaz Road from its existing location to the Business Park Drive location and remove the signal at Diaz Road which otherwise would double the stacking distance for vehicles traveling eastbound on Ranch California Road o Construct the Rancho California Bridge over Murrieta Creek and the addition of lanes to improve capacity o Add lanes east of Old Town Front Street to the southbound ramps. • That these improvements will assist with the level of service at the intersections as well as traffic circulation; • That although the City was fortunate in being able to construct the Low Flow Crossing at Via Montezuma, the Flood Control Project will be proceeding which may result in the loss of use of the Low Flow Crossing; therefore, desirous of further ensuring capacity on Rancho California Road; • That because of the visibility of this project, most of the involved property owners and the Business Park Association approached the City prior to offers being made; • That this project as well as other improvements will ensure that the City will be able to keep up with the continual development of the Business Park on the north and south sides; • That the primary concern raised with regard to this project pertains to change of driving patterns; • That the proposed land acquisitions are minor considering the scope of the project and that no structures will be included in the acquisition, only land. Further reviewing the process of acquiring property through eminent domain and in response to the City Councilmembers, Public Works Director Hughes responded as follows: • That the northbound lanes on Diaz Road will be maintained at the existing location (free right -turn movement); that the westbound vehicle entry to Business Park, traveling north on Diaz Road, the driver will no longer have to wait for a signal movement; that a lane on the bridge will accommodate that right -turn movement; • That offers were sent to the two fee parcels in 2002; • That the signals are currently out to bid; • That, in the City's opinion, this matter has come to a condemnation hearing not because of monetary issues but primarily because the property owners are not desirous of the project and, therefore, the City may not be able to mitigate the owners concerns; • That if the City were to take the requested action, negotiations would proceed throughout the entire process in an effort to settle out of court; • That currently no time schedule has been set for the Western Bypass tie-in. R:\Minutes\022404 10 City Attorney Thorson further reiterated that the City would continue its negotiations, noting that the City has initiated this process for approximately 50 parcels over the past several years; and that none have gone to trial. Mr. Thorson advised that the City Clerk had received a letter today, dated February 24, 2004, from Kendall MacVey of Best Best & Krieger, expressing views with respect to the properties owned by Global Outdoors, Inc., Musk Ox Properties, Ltd., Outdoor Channel Holdings, Inc., Outdoor Channel, and the Massie Family, noting that copies have been distributed to the City Council and that Mr. Hughes' comments have addressed the issues raised in his letter. Mr. Peter Racobs of Fiore, Racobs & Powers, representing the Business Park Association, addressed the information provided in the staff report as well as the overall project and commented on the proposed mitigation measures, noting the following: That the Business Park Association does in fact have the authority to approve a use not expressly permitted nor expressly prohibited under the CC&Rs; That the primary concern would be traffic circulation but that compensation would as well be an issue; that the City Council would not be able to make a required finding with regard to the City making an offer to each compensable property owner with the Association; that the City has only made an offer to the Association; That versus spending money on lawsuits, the City should be utilizing such monies to improve traffic circulation within the area of discussion and install a traffic signal at the western intersection of Business Park Drive. In response to Mr. MacVey's comments, Mr. Michael Yoshiba, attorney representing the City, noted the following: That the Association would be the organization with the decision authority for the Association members; that an offer has been made to the Association, which, in turn, has the ability to notify each and every business park owner; that if litigation were to proceed, each business park member would be named as claimants for compensation; That the City has the responsibility to notify the owner of record and the decision -making body of the CC&Rs; That a majority vote of the members of the Association would be necessary as to how to proceed. For Councilman Roberts, Mr. MacVey confirmed that the City is a member of the Rancho California Business Park Association. Mr. Robert Sieja, President/CEO of Western Eagle Foundation, provided a brief description of the services and support provided by Western Eagle Foundation; expressed concern with this project limiting accessibility to the Western Eagle property from Diaz Road by way of a left-hand turn; requested that a second driveway be constructed and that left-hand turn movements into and from Western Eagle onto Diaz Road be permitted. By way of overheads, Mr. Jerry Morter, Fullerton, addressed accessibility to his property (Western Eagle Foundation); commented on the loss of valuable frontage (approximately 13,000 square feet); advised that currently he has only one driveway to access his five -acre parcel; opposed the raised median; suggested that the proposed expansion be moved to the right side of Diaz Road (creek side) and, thereby, eliminating the need to impact property owners; and echoed that traffic circulation would be a primary concern but that compensation would be a concern as well. R:\Minutes\022404 11 Reiterating his past opposition to the Diaz Road Realignment Project, Mr. Sam Pratt, 40470 Brixton Cove, stated that, in his opinion, the project would violate the California Environmental Quality Act (CEQA). In response to comments made, Public Works Director Hughes stated the following: • That mitigation measures such a landscaping, irrigation, replacement of monument signs, etc. will be fully addressed; • That the signal west of Business Park Drive at Rancho California Road has been ranked as a low priority and would not be viewed as a direct connection to this project; • That because of the existing curvature of Diaz Road, a left -turn into Western Eagle would create a compromised site distance concern; • That as per the City's Circulation Element Plan, a raised median is necessary on Diaz Road; that the existing driveway for Western Eagle Foundation would be reconstructed and widened to ensure a radius that would permit effective maneuvering for trucks and trailers; • That moving the proposed expansion closer to the creek side would not be feasible because of the curvature and radius of the road and, thereby, making it unacceptable for the design speeds for this road; • That although offers have been made, the City would be willing to continue negotiations with regard to compensation; • That the proposed project would not change the travel patterns on Pujol Street; • That the feasibility of a second driveway would have to be explored. For Councilman Washington, Mr. Hughes further commented on the location of the existing driveway as well as the proposed improvements; noted that the planned median would extend further north of the existing driveway; and that U-turns would be permitted at the Rancho Way Road/Diaz Road signal. Further commenting on the current and the proposed ingress/egress movements for Western Eagle Foundation, Public Works Director Hughes, for Mayor Pro Tern Comerchero, stated that the existing driveway is very narrow; that trucks currently cross the centerline while making a right -turn movement from Western Eagle property; that access to the Western Eagle Foundation would be achieved through Winchester Road, south on Diaz Road, and right -turn movement onto the property; that the current left -turn movement from Western Eagle Foundation is not a desirable situation; and that egress from the Western Eagle property would be achieved by a right -turn movement onto Diaz Road, to Rancho California Road, and then to the freeway. With regard to the installation of a signal at the west end of Business Park Drive, Mr. Hughes noted that this signal will either be installed by the City because it has been placed on a priority list or if the Association were to decide to install it, noting that the cost of such a signal would be approximately $150,000 and that other than cost, there would not be a detriment to traffic if this signal were installed. Councilman Roberts expressed concern with trucks having the ability of U-turn movements at Rancho Way; with there not being a deceleration nor an acceleration lane on Diaz Road; and with Western Eagle Foundation property having only one driveway. He suggested the possibility of two driveways— one for ingress and one for egress. In response to Mr. Roberts' concern, Public Works Director Hughes noted that the proposed U- turn movement would be no different than any other City location; advised that the signal at Rancho Way and Diaz Road as well as the U-turn movements was as a result of negotiations. Mr. Hughes stated that the Diaz Road widening project would extend to the Low Flow crossing. With regard to a second driveway, he expressed a safety and site distance concern. R:\Minutes\022404 12 Councilman Washington suggested that a second driveway access, between the buildings on Business Park Drive, be explored. City Attorney Thorson, for Councilman Washington, noted that the Business Park Association would be the correct entity for this type of an eminent domain action. Although the proposed project will inconvenience some property owners, Mayor Pro Tern Comerchero, echoed by Councilman Roberts, stated that those inconveniences would not be to the level of the improvements made for the general good of the City. Mr. Comerchero expressed concern with the impact this project may have on the daily activities of the Western Eagle Foundation and, therefore, requested that more detailed drawings of the newly proposed driveway be presented to the Council and that the construction of a second driveway be further explored and, therefore, suggested that this matter be continued for 30 days. Strongly emphasizing the need for this project in order to address public safety impacts and the need to proceed in a timely fashion, Councilman Washington relayed his desire to proceed with the recommended action and to encourage the City to further negotiate in an effort to lessen the impact to Western Eagle Foundation. City Attorney Thorson advised that if the Council were to take the requested action, litigation would be filed but that negotiations with the property owners would continue. Reiterating that the City will continue its negotiations, Public Works Director Hughes advised that the needed amount of square footage may not be amended, noting that the requested square footage is needed to complete this project. Mr. Hughes requested that the City Council make the findings of necessity for the acquisition process, advising that, at this time, the Council is not being asked to approve the design of the project. Echoing Councilman Washington's comments to proceed and take the necessary action with the understanding that negotiations will continue, Mayor Naggar commented on the benefits of this project being for the greater good of the entire City. Councilman Roberts concurred with a 30-day continuance. In light of the importance of this project and the importance of the City Council having a comfort level in the overall project, City Manager Nelson stated that the City may proceed this evening and negotiations would continue or the Council may choose to continue this item for 30 days in order to allow the opportunity to provide additional information. MOTION: Councilman Washington moved to continue Item Nos. 16, 17, and 18 to the March 16, 2004 City Council meeting. The motion was seconded by Mayor Pro Tem Comerchero and electronic vote reflected approval with the exception of Councilman Stone who was absent. It was suggested that a Council subcommittee be formed to address this matter on which Councilman Washington offered to serve. Having been dealing with this matter for several years, both Mayor Pro Tern Comerchero and Councilman Roberts requested to serve on this subcommittee. MOTION: Mayor Pro Tern Comerchero moved to appoint Mr. Roberts and Mr. Comerchero to serve on this subcommittee. The motion was seconded by Councilman Roberts and electronic vote reflected approval with the exception of Councilman Stone who was absent. RAMinutes\022404 13 19 Public/Traffic Safety Commission Appointment RECOMMENDATION: 19.1 Appoint one applicant to serve on the Public/Traffic Safety Commission for an unexpired term through October 10, 2004. City Clerk Jones briefly summarized the staff report (of record). Echoing Councilman Roberts' comment, Mayor Pro Tern Comerchero relayed his support of appointing Mr. Paul Jacobs. Both Mayor Naggar and Councilman Washington as well expressed their support of the appointment of Mr. Paul Jacobs. MOTION: Councilman Roberts moved to appoint Mr. Paul Jacobs to the Public/Traffic Safety Commission. The motion was seconded by Mayor Pro Tern Comerchero and electronic vote reflected approval with the exception of Councilman Stone who was absent. DEPARTMENTAL REPORTS No additional comments. CITY MANAGER'S REPORT No comment. CITY ATTORNEY'S REPORT City Attorney Thorson advised that as per the Brown Act, there were no items to report under Closed Session, noting that the real property items, if successful in negotiations, will be forwarded to the City Council in Open Session at the next meeting and advising that the City Council provided direction with respect to the two litigation matters. ADJOURNMENT At 9:41 P.M., the City Council meeting was formally adjourned to a regular meeting on Tuesday, March 16, 2004, at 7:00 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. Michael S. Naggar, Mayor ATTEST: RAMinutes\022404 14 ITEM 3 RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT THE CITY COU14CIL 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 $6,253,194.50. Section 2. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED, this 16'" day of March, 2004. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] R:/Resos 2004/Resos 04- STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF TEMECULA ) I, Susan W. Jones, CIVIC, City Clerk of the City of Temecula, hereby do certify that the foregoing Resolution No. 04- was duly adopted at a regular meeting of the City Council of the City of Temecula on the 16t' day of March, 2004 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Susan W. Jones, CIVIC City Clerk R:/Resos 2004/Resos 04- CITY OF TEMECULA LIST OF DEMANDS 02/19/04 TOTAL CHECK RUN: $ 1,227,276.41 02/26/04 TOTAL CHECK RUN: 2,858,911.80 03/04/04 TOTAL CHECK RUN: 1,843,471.35 02/26/04 TOTAL PAYROLL RUN: 323,534.94 TOTAL LIST OF DEMANDS FOR 03M6104 COUNCIL MEETING: $ 6,253,194.50 DISBURSEMENTS BY FUND: CHECKS: 001 GENERALFUND $ 3,176,840.41 120 DEVELOPMENT IMPACT FUND 11.00 165 RDA DEV-LOW M10D SET ASIDE 16,773.32 190 COMMUNITY SERVICES DISTRICT 168,605.48 192 TCSD SERVICE! LEVEL B 37,970.66 193 TCSD SERVICE! LEVEL C 69,261.63 194 TCSD SERVICE: LEVEL D 480.13 210 CAPITAL IMPROV PROJECT FUND 760,367.78 261 CFD 88-12 ADNIIN EXPENSE FUND 5,517.76 280 REDEVELOPMENT AGENCY -CIP PROJECT 22,983.04 300 INSURANCE FUND 112,981.80 310 VEHICLE FUND 1,253.36 320 INFORMATION SYSTEMS 51,215.56 330 SUPPORT SERVICES 10,276.97 340 FACILITIES 12,499.66 460 CFD 88-12 DEBT SERVICE RESERVE FUND 397,318.75 470 CFD 01-2ADMIN/DEBT SERVICE FUND 695,584.23 473 CFD 03.1 CROWNE HILL RESERVE FUND 390,718.02 $ 5,929,659.56 001 GENERAL FUND 226,434.93 165 RDA DEV-LOW,'MOD SET ASIDE 5,431.41 190 COMMUNITY SI=RVICES DISTRICT 54,783.83 192 TCSD SERVICE LEVEL B 108.61 193 TCSD SERVICE LEVEL C 4,998.53 194 TCSD SERVICE LEVEL D 743.42 280 REDEVELOPMENT AGENCY -CIP PROJECT 2,248.85 300 INSURANCE FUND 1,037.36 320 INFORMATION SYSTEMS 19,589.78 330 SUPPORT SERVICES 2,544.83 340 FACILITIES 5,613.39 323,534.94 TOTAL BY FUND: $ 6,253,194.50 SHAWN NELSON, CITY MANAGER I HEREBY CERTIFY THAT THE FOLLOWING IS TRUE AND CORRECT. HEREBY CERTIFY THAT THE FOLLOWING IS TRUE AND CORRECT. apChkLst 02/19/2004 2:33:37PM Final Check List CITY OF TEMECULA Page: 1 Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 273 02/18/2004 000166 FIRST AMERICAN TITLE Property pur0h Depst:28731 Pujol St 10,000.00 10,000.00 89752 02/19/2004 001375 AMERICAN CONSTRUCTION Membership: Jack L. Hodson 125.00 125.00 89753 02/19/2004 006463 AMERICAN LANDSCAPE Jan Ldscp impr: Slopes 112.00 112.00 89754 02/19/2004 004022 AMERICAN MINI STORAGE, TE Feb storage lease for unit B109 153.00 Feb storage lease for unit F105 144.00 297.00 89755 02/19/2004 000747 AMERICAN PLANNING ASSOCI Membership: J. DeGange 106351 329.00 329.00 89756 02/19/2004 000101 APPLE ONE, INC. Temp help PPE 1/31 Delarm 592.80 Temp help PPE 1/31 Wills 572.00 Temp help PPE 1/31 Lee 520.00 Temp help PPE 1/31 Alexander 171.60 Temp help PPE 1/24 Alexander 11.70 1,868.10 89757 02/19/2004 003203 ARTISTIC EMBROIDERY City logo jacket: B&S 74.35 74.35 89758 02/19/2004 002648 AUTO CLUB OF SOUTHERN CA Membership: S.Lankenau 93416891 44.00 44.00 89759 02/19/2004 007370 BANNOC:K, DEBBIE Refund: Miss. Sues Dance 8.75 8.75 89760 02/19/2004 000622 BANTA ELECTRIC-REFRIGERA Install outlet for entry card: IS 385.00 385.00 89761 02/19/2004 003137 BARKERS FOOD MACHINERY S TCC: Kitchen equip gtrly mntc 221.67 CRC: Kitchen equip qtrly mntc 202.67 Sr Ctr: Kitchen equip qtdy mntc 152.00 576.34 89762 02/19/2004 003466 BASKET & BALLOONS TOO! Econ Devel Promotional Baskets 107.75 107.75 89763 02/19/2004 002541 BECKER CONSTRUCTION SRV R&R 3 handicap ramps: Old Town 6,338.00 6,338.00 89764 02/19/2004 004778 BERRYMAN & HENIGAR INC Jan temp inspector help: Grance 13,186.20 13,186.20 89765 02/19/2004 003138 CAL MAT Hot Mix Asphalt for PW mntc 2,922.47 2,922.47 89766 02/19/2004 000131 CARL WARREN & COMPANY I Oct -Dec Claim adjuster services 2,132.35 Oct -Dec Claim adjuster services 200.25 2,332.60 Page:1 apChkLst Final Check List Page: 2 02/19/2004 2:33:37PM CITY OF TEMECULA Bank: union UNION BANK OF CAL FORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 89767 02/19/2004 000137 CHEVRON U S A INC Fuel expense for city vehicles 30.41 30.41 89768 02/19/2004 007374 CHURCHWARD, RANDALL Refund: Grading Depst 30355 Via Nor 995.00 995.00 89769 02/19/2004 007355 CLINE, LORI Refund: Combo Dance 8.75 8.75 89770 02/19/2004 001193 COMP LI S A INC Misc Computer Supplies: IS 194.91 194.91 89771 02/19/2004 000447 COMTRONIX OF HEMET Relocate emerg. satellite phones 706.89 PW Dump Truck radio installation 538.30 1,245.19 89772 02/19/2004 000864 CORONA CLAY COMPANY INC Mound mix for sports park 1,077.50 1,077.50 89773 02/19/2004 007373 DEL SOL INVESTMENTS Refund: Mechanical Fee 32170 C Hwy 127.50 127.50 89774 02/19/2004 004192 DOWNS COMMERCIAL FUELI Fuel for city vehicles: City Van 61349 29.47 29.47 89775 02JI9/2004 000395 ECONOMIC DEVELOPMENT CO Qtly Luncheon Mtg:Thorson/DeGange 70.00 70.00 89776 02/19/2004 000164 ESGIL CORPORATION Jan plan check svcs: B&S 6,071.89 6,071.89 89777 02/19/2004 000165 FEDERAL EXPRESS INC Express mail services 448.90 448.90 89778 02/19/2004 000166 FIRST AMERICAN TITLE Lot Book Reprt: Vasquez 150.00 150.00 89779 02/19/2004 003347 FIRST BANKCARD CENTER 000871 HILTON MN Htl:Mayors Winter Mtg:1120-24 921.95 006942 ONTARIOAIRPORT MN Prkg:Mayors Winter Mtg:1/20-24 60.00 007379 FRAN O'BRIEN'S STADIUM STE MN Meal:Mayors Winter Mtg:1/20-24 21.20 000193 I C M A JO Book:Managing Comm Mtgs 14.95 007380 QUIZNO'S CORPORATION MN Meal:Mayors Winter Mtg:1/20-24 6.68 1,024.68 89780 02/19/2004 007366 FISCUS, BARBARA Refund: Digital Cameras 30.00 30.00 89781 02/19/2004 007008 FISHER SCIENTIFIC COMPANY Portable floodlight: Paramedics equip 272.34 272.34 89782 02/19/2004 007279 GAIL MATERIALS INC Infield mix: Various Park sites 2,074.97 2,074.97 Page2 apChkLst Final Check List Page: 3 02/19/2004 2:33:37PM CITYOFTEMECULA Bank: union UNION BANK OF CALI FORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 89783 02/19/2004 007368 GELINAS, ELENA Refund: Creative Dance 17.50 17.50 89784 OPJ19/2004 000177 GLENNIES OFFICE PRODUCTS Office Supplies: City Clerk 258.69 Office Supplies: City Mgrs 53.29 311.98 89785 02/19/2004 005947 GOLDEN STATE OVERNIGHT Express Mail Service: Fire 18.45 18.45 89786 02/19/2004 005311 H2O CERTIFIED POOL WATER Jan pool mntc: CRC/TES 2,137.09 2,137.09 89787 02/19/2004 004053 HABITAT W EST INC Dec Mntc: Lg Cyn Basin 504.16 504.16 89788 02/19/2004 000186 HANKS HARDWARE INC Hardware supplies: Fire Prevention 167.08 167.08 89789 02/19/2004 007369 HITCHCOCK, ELENI Refund: Combo Dance AH/KHNH 26.25 26.25 89790 02/19/2004 001517 INTEGFATED INSIGHTS DBA: H Feb ee assist prgm coordinator 682.29 682.29 89791 02/19/2004 003266 IRON MOUNTAIN OFFSITE Records mgmt microfilm storage unit 396.25 396.25 89792 02/19/2004 001186 IRWIN, JOHN TCSD instructor eamings 88.00 88.00 89793 02/19/2004 004265 JEWELL FENCE COMPANY Res Imp Prgm: Esparza, Tony 1,400.00 1,400.00 89794 02/19/2004 002424 KELLEY DISPLAY INC 117 Car Show Banners: Eco Devel 9,930.61 9,930.61 89795 02/19/2004 000206 KINKOS INC Stationery paper/misc supplies 18.22 18.22 89796 02/19/2004 006744 LAMAR CORPORATION, THE Feb Billboard lease pmt 2,500.00 Billboard chg-out to "Good Old" 450.00 2,950.00 89797 02/19/2004 000869 LAW RENCE W ELK RESORT TH Sr excursion to Hello, Dolly! 2/26 440.00 440.00 89798 02/19/2004 003726 LIFE ASSIST INC Paramedic squad supplies: Fire 590.64 Credit: Returned paramedic supplies -64.35 Credit: Returned paramedic supplies -80.44 Credit: Returned paramedic supplies -193.05 Credit: Returned paramedic supplies -210.00 42.80 89799 02/19/2004 000220 MAURIC E PRINTERS INC New media kit pocket folders 5,496.33 5,496.33 Page3 apChkLst Final Check List Page: 4 02/19/2004 2:33:37PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 89800 02/19/2004 003800 MCLAUGHLIN ENGINEERING Dec Prgs Pmt #4:J.W. Rd Impry 99,069.18 Credit:C/03,8,10,11,12 not approved -21,183.17 77,886.01 89801 02/19/2004 007210 MIDORI GARDENS Irrigation Repairs:Veteran's Park 335.12 335.12 89802 02/19/2004 005887 MOFFATfT & NICHOL ENGINEER Dec Consult Svcs:F.V.Pkwy/1-15 35,275.00 ACTT Workshop 12/1-31/03 8,000.00 43,275.00 89803 02/19/2004 007376 MOLLIN3, MARCUS Refund:Security Deposit 100.00 100.00 89804 02/19/2004 004490 MUSCO SPORTS LIGHTING INC Bulbs for ballpark lighting 4,515.88 4,515.88 89805 02/19/2004 002925 NAPA AUTO PARTS Parts for PW Maint Vehicle 4.82 4.82 89806 02/19/2004 002139 NORTH COUNTY TIMES Jan Public Ntcs:Planning 319.44 319.44 89807 02/19/2004 003382 O'GRADY, JAMES B. Reimb:C.M.Mtg:2/04-06/04 72.42 72.42 89808 02/19/2004 002105 OLD TOWN TIRE & SERVICE Tires for Police Trailer 239.89 City Vehicle MainVRepair Svcs 146.20 City Vehicle MainVRepair Svcs 23.50 409.59 89809 02/19/2004 002652 PAT & CSCARS RESTAURANT Fire Prev Automation/Laptop Mtg w/Co 115.56 115.56 89810 02/19/2004 003218 PELA Jan Plan Ck Svcs:Planning 13,945.00 13,945.00 89811 02/19/2004 000253 POSTMASTER Express Mail & Postal Svcs 140.80 140.80 89812 02/19/2004 003697 PROJECT DESIGN CONSULTAN Design Svcs:J.W. Rd Imprv. 3,738.00 3,738.00 89813 02/19/2004 000728 RAMSEY BACKFLOW & PLUMB Var. Parks Backflow Testing Svcs 2,411.00 Var. Slopes Backflow Testing Svcs 426.00 2,837.00 89814 02/19/2004 000262 RANCHO CALIF WATER DIST Various Water Meters 3,087.53 3,087.53 89815 02/19/2004 004584 REGENCY LIGHTING Var. Parks Electrical Supplies 567.50 567.50 89816 02/19/2004 003742 REHAB FINANCIAL CORPORATI Jan RDA Loan Collections 16.00 Dec RDA Loan Collections 8.00 24.00 89817 02/19/2004 002907 REINHART FONTES Property Appraisal Svcs:Cherry/Diaz 6,500.00 6,500.00 PageA apChkLst 02/19/2004 2:33:37PM Final Check List CITY OF TEMECULA Page: 5 Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 89818 02/19/2004 006483 RICHAFDS, TYREASHA I. TCSD Instructor Earnings 200.00 200.00 89819 02/19/2004 007372 RILINGTON BELLA VILLAGGIO Refund:Pe"ft Fees:MargrYnez/Paub 28.00 28.00 89820 02/19/2004 006124 RIVERSIDE BLUEPRINT Toner for PW Copier 293.50 293.50 89821 02/19/2004 000352 RIVERSIDE CO ASSESSOR Feb Assessor Maps for B&S Dept. 24.00 24.00 89822 02/19/2004 000353 RIVERSIDE CO AUDITOR Dec Parking Cite Assessments 1,764.33 1,764.33 89823 02/19/2004 003698 RIVERSIDE CO ECONOMIC Business Attraction Agreement Pmt 75,000.00 75,000.00 89824 02/19/2004 000411 RIVERSIDE CO FLOOD NPDES Fac. Inspection:3/2-3/04 70.00 70.00 89825 02/19/2004 002940 RIVERSIDE CO OF (GIS SYSTE FY 03/04 GIS Services 5,000.00 5,000.00 89826 02/19/2004 000355 RIVERSIDE CO REGISTRAR OF 11/04/03 Election Svcs 77,391.00 77,391.00 89827 02/19/2004 000406 RIVERSIDE CO SHERIFFS DEP 10/16-11/12/03:Law Enforcement 721,298.52 721,298.52 89828 02/19/2004 000271 ROBERT BEIN WM FROST & A Dec Consult Svcs:1-15779S 800.00 800.00 89829 02/19/2004 000278 SAN DIE:GO UNION TRIBUNE Jan Recruit Ads:H.R. Dept. 658.40 658.40 89830 02/19/2004 000645 SMART & FINAL INC High Hopes Prgm Supplies 154.73 154.73 89831 02/19/2004 007375 SMITH, CHELSEA Refund:Security Deposit 100.00 100.00 89832 02/19/2004 007367 SMITH, DIANA Refund:Gymnastics-Tumbling Tot 28.00 28.00 89833 02/19/2004 000537 SO CALIF EDISON Feb 2-01-202-7330 Various Mfrs 36,416.83 Jan 2-00-397-5059 Various Mtrs 5,673.42 42,090.25 89834 02/19/2004 001212 SO CALIF GAS COMPANY Feb Var. City Fac. Gas Meters 4,586.38 4,586.38 89835 02/19/2004 007365 STILWELL, EVELYN Refund:Miss Sues Dance 30.00 30.00 Pages apChkLst Final Check List Page: 6 02/19/2004 2:33:37PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 89836 02/19/2004 005412 TEMECULA GARDEN & POWER Equip Repairs for PW Maint Div 123.23 Equip Repairs for PW Maint Div 75.92 199.15 89837 02/19/2004 006896 TEMECULA MUSIC ACADEMY I TCSD Instructor Earnings 360.00 TCSD Instructor Earnings 72.00 432.00 89838 02/19/2004 000307 TEMECULA TROPHY COMPAN Explorer Prgm Recogn. Awards 645.85 Signature Stamp:Finance 25.86 Plaque for Temecula Muster:9/27/03 10.99 682.70 89839 02/19/2004 000515 TEMECULA VALLEY CHAMBER FY 03104 3rd Otr Funding Pmt 37,000.00 37,000.00 89840 02/19/2004 000919 TEMECULA VALLEY UNIFIED S FY 03/04 Field Renovations 89841 02/19/2004 000319 TOMARK SPORTS INC Sports Field Equipment 89842 02/19/2004 004981 UNISOURCE SCREENING & 01/01-15/04 Background Screen Svcs 89843 02/19/2004 004846 UNITED GREEN MARK INC Slopes Irrigation Supplies 89844 02/19/2004 004261 VERIZON CALIFORNIA Feb xxx-1941 PTA CD TTACSD Feb xxx-3851 General Usage 89845 02/19/2004 004789 VERIZOV INTERNET SOLUTION Internet Svcs/EOC Backup @ Stn 84 89846 02/19/2004 003730 WEST COAST ARBORISTS INC Citywide Tree Trimming Maint Svcs 89847 02/19/2004 002109 WHITE CAP INDUSTRIES INC Maint Supplies for PW Maint Div 89848 02/19/2004 003756 WHITE HOUSE SANITATION Feb Cleaning Svcs:Btrfld Stage R.R. 21,550.00 343.67 45.00 40.04 57.97 41.09 69.95 1,260.00 928.98 50.00 Sub total for UNION BANK OF CALIFORNIA: 21,550.00 343.67 45.00 40.04 99.06 69.95 1,260.00 928.98 50.00 1,227,276.41 PageB apChkLst Final Check List Page: 1 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 274 02/26/2004 000444 INSTATAX (EDD) State Disability Ins Payment 15,616.57 16,616.57 275 02/26/2004 000283 INSTATAX (IRS) Federal Income Taxes Payment 62,073.08 62,073.08 276 02/26/2004 001065 NATIONWIDE RETIREMENT SO Nationwide Retirement Payment 18,865.33 18,865.33 277 02/26/2004 000246 PERS (EMPLOYEES' RETIREME PERS ER Paid member Contr Pmt 59,511.46 59,511.46 278 02/26/2004 000389 U S C M WEST (OBRA), OBRA - Project Retirement Payment 2,049.16 2,049.16 90140 02/26/2004 001985 A E P (ASSOC OF ENVIRO Membership David Hogan 5/4-4/5 100.00 100.00 90141 02/26/2004 004148 AT&T Long distance svcs: P.D. 209.39 209.39 90142 02/26/2004 002038 ACTION POOL & SPA SUPPLY Pool sanitizing chemicals supplies 47.37 Credit: Returned bottles -35.00 12.37 90143 02/26/2004 004240 AMERICAN FORENSIC NURSES DUI Drug & Alcohol Screening 362.40 DUI Drug & Alcohol Screening 80.90 443.30 90144 02/26/2004 000936 AMERIC:AN RED CROSS Lifeguard Training Manuals 1,494.00 1,494.00 90145 02/26/2004 007398 ANDERI3ERG, PAULINE Refund: Tia-Chi/Yoga 13.75 13.75 90146 02/26/2004 000101 APPLE ONE, INC. Temp help PPE 217 Delarm 624.00 Temp help PPE 2/7 Lee 624.00 Temp help PPE 217 Wills 572.00 Temp help PPE 277 Alexander 171.60 1,991.60 90147 02/26/2004 004967 B D R ADVERTISING SPECIALTI Mrkg products: Eco Devel 2,528.35 2,528.35 90148 02/26/2004 003215 BARCLAYS LAW PUBLISHERS T 19 Public Safety Manual 85.00 85.00 90149 02/26/2004 002541 BECKER CONSTRUCTION SRV J.Smith Channel silt & debris clean-up 1,789.20 1,789.20 90150 02/26/2004 004262 BIO-TOX LABORATORIES DUI Drug & Alcohol Screening 1,024.70 DUI Drug & Alcohol Screening 569.60 1,594.30 90151 02/26/2004 004825 BOB'S CANVAS INC Fac Imp Prgm: Wine & Beer Garden 14,930.00 Fac Imp Prgm: Wine & Beer Garden -4,965.00 9,965.00 Page:1 apChkLst Final Check List Page: 2 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 90152 02/26/2004 006721 BOISE 0ASCADE OFFICE Office Furniture for Police Dept 2,285.11 Office Supplies: Planning Dept 622.84 Office Supplies: Finance 82.85 Office supplies: Finance 11.17 3,001.97 90153 02/26/2004 007389 BOULWARE, PAMELA Refund: Yoga -Prenatal Yoga 57.00 57.00 90154 02/26/2004 004176 BROAGNING Long distance &Internet svcs 2,088.46 2,088.46 90155 02/26/2004 007243 BROOKSTONE Employees Service Awards 804.41 Employees Service Awards 175.13 979.54 90156 02/26/2004 000128 BROWN & BROWN OF CALIF. I Chubb Insur. renewal 2104-2105 39,070.00 Landmark Insur. renewal 2/04-2/05 38,193.25 Grt Amer. Insur. renewal 2/04-2105 15,900.00 Greenwich Insur. renewal 2104-2/05 3,975.00 97,138.25 90157 02/26/2004 005055 BROWN, STEVE Reimb: Refrshmnts:C.F. Vision Mtg 74.38 74.38 90158 02/26/2004 007399 BROWN, TAMMY Refund: Arts/Crafts-Cartooning 112.50 112.50 90159 02/26/2004 006046 C S A 1 A SPRING TRAINING Sprg Trng:3/10-12/04:Felt,Pete 300.00 300.00 90160 02/26/2004 006046 C S A IA SPRING TRAINING Sprg Trng:3/10-12/04:Lopez,R. 300.00 300.00 90161 02/26/2004 005384 CALIF BAGEL BAKERY & DELI Refreshments: Council closed session 168.09 168.09 90162 02/26/2004 000152 CALIF PARKS & RECREATION S Playground Tmg:3/10:W iechec 75.00 75.00 90163 02/26/2004 006075 CAMPBELL, KENTON SCOTT TCSD instructor earnings 459.20 459.20 90164 02/26/2004 004971 CANON FINANCIAL SERVICES, Mar lease pmt for City Copiers 6,797.24 Mar lease prat for CRC copier 328.63 7,125.87 90165 02/26/2004 007245 CARTER, TAKESHI Release of all claims #2004-421 636.89 636.89 90166 02/26/2004 002710 CHAMPLAIN PLANNING PRESS 5 issues of Planning comm. jml pub. 95.00 95.00 90167 02/26/2004 003428 CHIVALRY LIMOUSINE LLC Park tour shuttle & driver svcs 1/23/04 215.00 215.00 90168 02/26/2004 003628 CHUYS RESTAURANT Refreshments: Chiefs Mtg W/staff 311.98 311.98 Page2 apChkLst Final Check List Page: 3 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 90169 02/26/2004 005417 CINTAS FIRST AID & SAFETY First aid supplies: CRC 45.90 45.90 90170 02/26/2004 001410 CITIZENS SCHOLARSHIP 03/04 CSF Tern Valley High School 5,000.00 5,000.00 90171 02/26/2004 001410 CITIZENS SCHOLARSHIP 03/04 CSF- Chaparral High School 5,000.00 5,000.00 90172 02/26/2004 000912 CITY CLERKS ASSN OF CALIF '03 Ann'I Cf:4/21-23:S.Jones/G.Flores 790.00 790.00 90173 02/26/2004 004405 COMMUNITY HEALTH CHARI Community Health Charities Payment 163.00 163.00 90174 02/26/2004 006553 COMMUNITY NATIONAL BANK Ret. to Escrow:Soundwall 26,834.80 26,834.80 90175 02/26/2004 002147 COMPLIMENTS COMPLAINTS & Deposit:Entertainment:CRC 216-7 Final prat: Entertainment: CRC: 216-7 Father/Daughter Date Ngt Bow Ties 90176 02/26/2004 002631 COUNTS UNLIMITED INC Traffic count data collection svcs 90177 02/26/2004 007377 CURTIS DUMP TRUCK & Refund: Bldg Fees 31195 Del Rey 90178 02/26/2004 002990 DAVID TURCH & ASSOCIATES Feb. Federal lobbyist svcs 90179 02/26/2004 004222 DIAMONDBACK FIRE & RESCU Fire Stn 73/92 - Amkus rescue sys svc 90180 02/26/2004 005965 DIVERSIFIED PROTECTION Data Ctr A/C Preventative Mntc Credit: Client Canceled Agrmnt 90181 02/26/2004 007392 DIXON, ELIZABETH Refund: Music for toddlers 90182 02/26/2004 004192 DOWNS COMMERCIAL FUELI Fuel for city vehicles: TCSD 61343 Fuel for city vehicles: PW 61353 90183 02/26/2004 007395 DWELLE:, JENNIFER Refund: Yoga -Prenatal Yoga 90184 02/26/2004 004799 E C S IMAGING INC 4/04-3/05 Laserfiche mmc agrmnt 200.00 200.00 150.63 550.63 2,025.00 2,025.00 48.00 48.00 3,000.00 3,000.00 729.52 729.52 1,800.00 -1,492.50 307.50 30.00 30.00 961.60 520.37 1,481.97 57.00 57.00 14,073.59 14,073.59 Page3 apChkLst Final Check List Page: 4 02126(2004 4:61:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description 90185 02/26/2004 001380 E S I EMPLOYMENT SERVICES Temp help PPE 2/6 Hear Temp help PPE 2/6 LN & LN Temp help PPE 2/6 Rush Temp help PPE 216 Kanigowski Temp help PPE 216 Cammarota Temp help PPE 2/6 Lontok Temp help PPE 2/6 Gutierrez Temp help PPE 2/6 Seng 90186 02/26/2004 007319 EAGLE ROAD SERVICE & TIRE I PW large vehicles flat tire repairs 90187 02J26t2004 000523 EASTERN MUNICIPAL WATER Plan ck for Pechanga Pkwy/Deer Holl 90188 02/26/2004 002390 EASTERN MUNICIPAL WATER 95366-02 Diego Dr Ldscp 90189 02/26t2004 006487 EUROPEAN CAFE & VINEYARD Refreshments:Closed Session 90190 02/26/2004 001056 EXCEL LANDSCAPE 90191 02/26/2004 000478 FASTS13NS 90192 02/26/2004 000165 FEDERAL EXPRESS INC Jan Idscp svcs: South Slopes Jan Idscp svcs: Medians Jan Idscp svcs: City Parks & Fac. Credit: Overchged Idscp svcs Credit: Overchged Idscp Svcs Credit: Overchged Idscp svcs Credit: Overchged Idscp svcs Credit: Overchged Idscp svcs Lettering for PW Dump Truck Lettering for fire prevention vehicle Express mail services 90193 02/26/2004 001511 FIELDMAN ROLAPP & ASSOCIA Financial analysis:Butterfield CFD Amount Paid 5,651.02 4,441.48 2,000.80 1,386.00 1,236.57 1,200.00 1,192.80 1,157.30 1,012.87 rrr rr 52.96 228.54 27,498.00 8,135.00 7,145.00 -51.00 -109.00 -299.00 -1,211.00 -1,767.00 1,242.02 463.57 183.28 3,031.94 Check Total 18,265.97 1,012.87 1,000.00 52.96 228.54 39,341.00 1,705.59 183.28 3,031.94 Page:4 apChkLst Final Check List Page: 5 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 90194 02/26/2004 003347 FIRST BANKCARD CENTER DAVE & BUSTER'S SJ City Clerk Team bldg 311.49 BARNES AND NOBLE TT Microsoft Help Books 155.87 SHARP ELECTRONICS CORP. TT Sharp projector repairs: IS 145.00 COUNTRY GARDEN RESTAURA WH PW mtc staff prjt updates mtg 144.93 BORDERS BOOKS & MUSIC TT Into System help books 118.46 BARNES AND NOBLE TT Visually Office help books 67.86 VOLKER LUTZ ENTERPRISES, I JM RDA lunch Mtg w/councilmember 19.49 KRISPY KREME DOUGHNUTS SJ Refreshments:Team Bldg 15.35 SPRINT TT Returned PCS keyboard -129.28 849.17 90195 02/26/2004 001135 FIRST CARE INDUSTRIAL MED New as physical & drug testing 25.00 25.00 90196 02/26/2004 007008 FISHER SCIENTIFIC COMPANY Paramedic squad equipment Paramedic squad equipment 90197 02/26/2004 007396 FONSECA, RENEE Refund: Yoga -Find the Power T/TH 90198 02/26/2004 000170 FRANKL.IN QUEST COMPANY I Daytimer supplies: PW/Eng 90199 02/26/2004 004944 FULLCCURT PRESS Number Current A/P Check Stock 90200 02/26/2004 000177 GLENNIES OFFICE PRODUCTS Office Supplies: TCSD Office Supplies: Fire Prev. 90201 02/26/2004 005947 GOLDEN STATE OVERNIGHT Express Mail Service: Fire Prevention 90202 02/26/2004 001609 GREATER ALARM COMPANY I Feb -Apr alarm svcs: Police Storefront 90203 02/26/2004 004053 HABITAT W EST INC 90204 02/26/2004 007371 HARVESTON,LLC 90205 02/26/2004 007391 HELMLE., FRANCIS 90206 02/26/2004 004811 HEWLEfTPACKARD Jan mntc agrmnt: Lng Cyn Basin Refund:Overpmt Const. Costs Refund: Basic Drawing for Adults Refund: Basic Drawing for Adults 6 PC'S for Police Dept HP Color Laserjet: Police 587.45 275.34 39.00 178.20 615.51 1,459.06 669.71 10.29 87.00 504.16 76,001.25 46.67 46.67 6,180.54 2,060.18 862.79 39.00 178.20 615.51 2,128.77 10.29 87.00 504.16 76,001.25 93.34 8,240.72 Pages apChkLst Final Check List Page: 6 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check 4 Date Vendor Description Amount Paid Check Total 90207 02/26/2004 005748 HODSON, CHERYL A. Support Payment 22.70 22.70 90208 02/26/2004 003624 HOWELL, ANN MARIE Design media kit pocket folder: EcoDe 1,670.25 1,670.25 90209 02/26/2004 007397 HSIEH, LOUISA Refund:Tem Music Acad-LapKeyboard 220.00 220.00 90210 02/26/2004 007390 HUTCHINSON, MARGIE Refund: Yoga -Find the Power T/TH 39.00 39.00 90211 02/26/2004 001060 HYATT HtI:CSMFO Cf:Simpson:2/29-3/1/04 173.60 173.60 90212 02/26/2004 000194 1 C M A RETIREMENT TRUST 45 ICMA Retirement Payment 7,161.18 7,161.18 90213 02/26/2004 003857 IDEA AFT INC Various Postcards for TCSD 168.35 168.35 90214 02/26/2004 001407 INTER VALLEY POOL SUPPLY I Pool sanitizing chemicals 322.17 322.17 90215 02/26/2004 004908 JIFFY LOBE 1878 City Vehicle MainURepair Svcs 50.73 City Vehicle MainURepair Svcs 32.42 83.15 90216 02/26/2004 007276 K G T V websile ad:Eco Dev mrkg prgm 900.00 900.00 90217 02/26/2004 007188 LAERDP.L MEDICAL CORP. Heartsaver AED/First Aid/CPR text 431.00 431.00 90218 02/26/2004 003605 LAKE EL.SINORE STORM High Hopes Baseball game depst 44.00 44.00 90219 02/26/2004 000210 LEAGUE: OF CALIF CITIES '04 Planners Cf:3/31-4/2:Papp 450.00 450.00 90220 02/26/2004 003726 LIFE ASSIST INC Paramedic squad supplies: Fire 371.30 Paramedic squad supplies: Fire 214.50 585.80 90221 02/26/2004 002634 LITELINES INC Replacemnt Parts for Park Lamps 793.48 793.48 90222 02/26/2004 007387 LONDON, MARA Refund: Color Me Mine:Adult Ceramic 40.00 Refund: Color Me Mine:Adult Ceramic 40.00 80.00 90223 02/26/2004 006897 LORY, SUSAN, J. TCSD instructor earnings 126.00 TCSD instructor earnings 84.00 TCSD instructor earnings 42.00 252.00 90224 02/26/2004 004087 LOW E'S Hardware supplies: City Hall 160.63 160.53 Page6 apChkLst Final Check List Page: 7 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALI FORNIA (Continued) Check If Date Vendor Description Amount Paid Check Total 90225 02/26/2004 007393 LYNCH, JULIO Refund: Oil Painting 55.00 55.00 90226 02/26/2004 003782 MAIN STREET SIGNS PW:Misc. signs & hardware 371.74 371.74 90227 02/26/2004 000394 MAINTENANCE Can. Class:MVJS/DD/RC:4/14/04 120.00 120.00 90228 02/26/2004 004141 MAINTEX INC Old Town Custodial Supplies 521.45 CRC Custodial Supplies 476.66 Sr Ctr Custodial Supplies 171.57 TCC Custodial Supplies 168.67 1,338.35 90229 02/26/2004 001967 MANPOWER TEMPORARY SER Temp Help We 02/15 Dankworth 658.40 Temp Help We 02108 Dankworth 658.40 1,316.80 90230 02/26/2004 005806 MATTHEWS, CATHERINE J. Oct Jan City Street Addressing 251.00 251.00 90231 02/26/2004 000220 MAURICE PRINTERS INC Tem. Citizen Corp Brochures 1,050.56 1,050.56 90232 02/26/2004 007404 MCCVB-HOUSING BUREAU Htl:'04 Plnrs Institute:3/31-4/2/04 341.16 341.16 90233 02/26/2004 004894 MICHAEL BRANDMAN ASSOCIA Dec Prof Svcs:Pechanga Pkwy Ph II 3,366.40 3,366.40 90234 02/26/2004 007210 MIDORI GARDENS Jan Parks Ldscp Maint Svcs 26,743.48 26,743.48 90235 02/26/2004 001892 MOBILE MODULAR Feb Modular Bldg Rental:Stn 92 832.40 832.40 90236 02/26/2004 007388 MONET, SHARON Refund:Hawaiian-Beg Teen/Adult 21.24 21.24 90237 02/26/2004 004508 NAGGAR, MICHAEL S. Reimb:Conf/Mayors:01/20-24/04 7.67 7.67 90238 02/26/2004 002925 NAPA AUTO PARTS Police:Misc auto parts 27.73 Police:Misc auto parts 24.41 52.14 90239 02/26/2004 000727 NATIONAL FIRE PROTECTION Membership Dues: J. Neuman 135.00 135.00 90240 02/26/2004 000915 NATIONAL NOTARY ASSOCIATI Renew Notary Ins:S.Jones 51.00 51.00 90241 02/26/2004 002100 OBJECT RADIANCE INC TCSD Instructor Earnings 509.60 509.60 Page:? apChklst Final Check List Page: 8 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 90242 02/26/2004 002105 OLD TONN TIRE & SERVICE PW Vehicle MainVRepair Svcs 167.21 PW Vehicle MainVRepair Svcs 119.29 PW Vehicle MaintlRepair Svcs 119.29 PW Vehicle MainVRepair Svcs 119.29 PW vehicle MainVRepair Svcs 80.16 PW Vehicle MaintlRepair Svcs 66.60 PW Vehicle MainVRepair Svcs 25.65 PW Vehicle MainVRepair Svcs 19.19 City Vehicle MainVRepair Svcs 1.08 717.76 90243 02/26/2004 001171 ORIENTAL TRADING COMPANY CRC Recreation Supplies 10.90 10.90 90244 02/26/2004 004074 PARTY CITY OF TEMECULA IN TCSD Special Events Supplies 20.03 20.03 90245 02/26/2004 001958 PERS LONG TERM CARE PROG PERS Long Term Care Payment 288.55 288.55 90246 02/26/2004 000249 PETTY CASH Petty Cash Reimbursement 380.25 Petty Cash Reimbursement 329.56 709.81 90247 02/26/2004 005075 PRUDE14TIAL OVERALL SUPPL Jan City Fac. Uniform/MaUfowel Rent 795.40 795.40 90248 02/26/2004 005067 PURSUIT TECHNOLOGY INC Laptop Equipment:Fire Stn 84 997.92 997.92 90249 02/26/2004 004318 R J BULLARD CONSTRUCTION Jan Prgs Pmt #10:Soundwall Impry 241,513.20 241,513.20 90250 02/26/2004 004029 R J M DESIGN GROUP INC Dec Dsgn Svcs:W.C. Sports Complex 49,185.23 49,185.23 90251 02/26/2004 007403 RAGAN COMMUNICATIONS, IN 'Bits & Pieces" Subscrp: A. Elmo 51.14 51.14 90252 02/26/2004 004468 RANCH MUFFLER Fire Prevention Vehicle:Tool Box 374.79 374.79 90253 02/26/2004 000262 RANCHO CALIF WATER DIST Various Water Meters 2,760.80 01-23-01075-1 Crowns Hill Dr. 366.67 3,127.47 90254 02/26/2004 000947 RANCHO REPROGRAPHICS Pechanga Pkwy:Blueprint reproduction 536.14 536.14 90255 02/26/2004 004584 REGENCY LIGHTING City Hall Electrical Supplies 299.11 Credit:Items Retumed:City Hall -18.06 281.05 90256 02/26/2004 003591 RENES COMMERCIAL MANAGE Weed abatement, trash pick-up 3,000.00 3,000.00 PageE apChkLst Final Check List Page: 9 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 90257 02/26/2004 002412 RICHARDS WATSON & Dec 2003 Legal Services 127,844.02 127,844.02 90258 02/26/2004 000411 RIVERSIDE CO FLOOD NPDES Fac. Inspection Tm:3/2/04 35.00 35.00 90259 02/26/2004 000406 RIVERSIDE CO SHERIFFS DEP 12/11-01/07/04:Law Enforcement 730,299.20 11/13-12/10/03:Law Enforcement 726,455.02 1,456,754.22 90260 02/26/2004 000406 RIVERSIDE CO SHERIFFS DEP Dec 2003 Booking Fees 10,156.80 10,156.80 90261 02/26/2004 006555 S B C PACIFIC BELL Router for computer room 352.80 352.80 90262 02/26/2004 001942 S C SIGNS New Planning Public Notices Signs 1,400.00 Jul -Aug Planning Public Ntcs Signs 910.00 Sep -Oct Planning Public Ntcs Signs 785.00 3,095.00 90263 02/26/2004 005227 SAN DIE:GO COUNTY OF Support Payment 132.00 132.00 90264 02/26/2004 006815 SAN DIE:GO, COUNTY OF Support Payment 12.50 12.50 90265 02/26/2004 004562 SCHIRMER ENGINEERING CDR Fire Prevention -Plan Check 3,400.00 3,400.00 90266 02/26/2004 004609 SHREDFORCE INC February Shredding svcs 110.00 110.00 90267 02/26/2004 000645 SMART & FINAL INC TCSD Special Events Supplies 153.21 High Hopes Prgm Supplies 62.23 215.44 90268 02/26/2004 003477 SMITH, 13ARBARA Relmb:TCSD Camera 456.52 456.52 90269 02/26/2004 000537 SO CALIF EDISON Feb 2-00-987-0775 Vail Ranch 2,608.78 Feb 2-19-999-9442 Various Mtrs 1,974.15 Feb 2-25-393-4681 T.E.S. Pool 435.97 Feb 2-23-365-5992 Fire Stn 92 373.60 Feb 2-22-891-0550 Various Mtrs 238.28 Feb 2-24-817-8717 Old Kent Prk 212.65 Feb 2-24-628-8963 Btdld Stage 27.10 Feb 2-24-151-6582 Overland Trl 12.57 5,8113.10 90270 02/26/2004 001212 SO CALIF GAS COMPANY Feb 021-725-0775-4 Sr Ctr 373.32 Feb 095-167-7907-2 Fire Stn 84 275.48 Feb 196-025-0344-3 C. Museum 154.56 Feb 181-383-8881-6 Museum 155.65 Feb 091-085-1632-0 T.E.S. Pool 15.78 1,004.79 Page9 apChkLst Final Check List Page: 10 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 90271 02/26/2004 000519 SOUTH COUNTY PEST Code Enforcement Pest Control Svcs 136.00 CRC Pest Control Svcs 90.00 Code Enforcement Pest Control Svcs 84.00 Fire Stn 84 & 92 Pest Control Svcs 42.00 T.Museum Pest Control Svcs 42.00 TCC Pest Control Svcs 36.00 Wedding Chapel Pest Control Svcs 32.00 462.00 90272 02/26/2004 004496 SPARKS EXHIBITS & Prgs Pmt:Childrens Museum 86,484.76 86,484.76 90273 02/26/2004 005786 SPRINT Feb Acct Level Chrgs 33.87 33.87 90274 02/26/2004 004247 STERICYCLE INC Feb Medical Waste Collection Svcs 77.84 77.84 90275 02/26/2004 000305 TARGET STORE Recreation Supplies:Family Fun Night 214.99 Recreation Supplies:TCC 201.45 Special Events Supplies 92.16 Recreation Supplies:High Hopes 85.42 Special Events Supplies 34.10 628.12 90276 02/26/2004 005985 TECHNOLOGY INTEGRATION G Printer Supplies and Cartridges 48.29 48.29 90277 02/26/2004 005412 TEMECULA GARDEN & POWER PW Maint:sm equip repairs 273.28 273.28 90278 02/26/2004 000307 TEMECULA TROPHY COMPAN '03 Summer/Fall Softball Awards 597.96 Electric Lights winners 101.72 Turkey Trot Plaques 64.65 Farther/Daughter Date Night Winner 22.09 786.42 90279 02/26/2004 000668 TIMMY D PRODUCTIONS INC Middle School Dance DJ 2/06/04 350.00 350.00 90280 02/26/2004 006192 TRISTAFF GROUP Temp Help We 02/08 Bradley 520.00 520.00 90281 02/26/2004 000459 TUMBLE_ JUNGLE FITNESS GY TCSD Instructor Earnings 316.80 TCSD Instructor Earnings 246.40 TCSD Instructor Earnings 158.40 TCSD Instructor Earnings 158.40 TCSD Instructor Earnings 158.40 TCSD Instructor Earnings 158.40 TCSD Instructor Earnings 123.20 TCSD Instructor Earnings 105.60 1,425.60 90282 02/26/2004 007118 US TEL PACIFIC CORPORATIO Feb -Mar Internet IP Addresses Block 568.04 568.04 Page:10 apChkLst Final Check List Page: 11 02/26/2004 4:51:17PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check If Date Vendor Description Amount Paid Check Total 90283 02/26/2004 004846 UNITED GREEN MARK INC Slopes Irrigation Supplies 97.71 Slopes Irrigation Supplies 46.51 144.22 90284 02/26/2004 000325 UNITED WAY United Way Charities Payment 220.00 220.00 90285 02/26/2004 005805 URISA 2004 Membership Dues:K.Beal 150.00 150.00 90286 02/26/2004 004261 VERIZON CALIFORNIA Feb xxx-5072 general usage 4,403.79 Feb )=-0074 general usage 259.98 Feb xxx-1473 general usage 104.63 Feb xxx-1603 general usage 90.12 Feb xxx-3564 general usage 56.57 Feb )=-8573 general usage 31.59 Feb )=-3923 general usage 27.58 4,974.26 90287 02/26/2004 004848 VERIZON SELECT SERVICES I Feb long distance phone svcs 1,469.38 1,469.38 90288 02/26/2004 006612 WEATHERPROOFING TECH, I Replace Broken Roof Tile @ Pala Pk 1,030.00 TCC Roof Prev. Maint. Svcs 600.00 T.Museum Roof Prev. Maint Svcs 370.00 Wed. Chpl Roof Prev. Maint. Svcs 150.00 2,150.00 90289 02/26/2004 003835 WESTCOASTSUPPLY PW Maint:Supplies 323.67 323.67 90290 02/26/2004 000621 WESTERN RIVERSIDE COUNC Jan'04 TUMF Fees 226,100.00 226,100.00 90291 02/26/2004 000621 WESTERN RIVERSIDE COUNC Dec'03 TUMF Fees 59,850.00 59,850.00 90292 02/26/2004 007394 WESTMORELAND, VANESSA Refund:Yoga-Prenatal Yoga 57.00 57.00 90293 02/26/2004 004829 W ILSON GROUP L-C, THE Feb State lobbyist svcs for City issues 3,500.00 3,500.00 90294 02/26/2004 003434 Z E P MANUFACTURING PW Maint:supplies 154.50 154.50 90295 02/26/2004 003776 ZOLL M EDICAL CORPORATION Paramedic Supplies 902.97 902.97 Grand Total All Checks: 2,858,911.80 Page:11 apChkLst Final Check List Page: 12 02/26/2004 4:51:17PM CITY OF TEMECULA 161 checks in this report Grand Total All Checks: 2,858,911.80 Page:12 apChkLst 03/04/2004 3:40:14PM Final Check List CITYOFTEMECULA Page: 1 Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 279 02/27/2004 003228 U S BANK TRUST NATIONAL AS Harveston/Crowne Hill Taxes Levied 1,086,302.25 1,086,302.25 280 02/27/2004 003228 U S BANK TRUST NATIONAL AS CFD 88-12 Debt Svc Pmt 397,318.75 397,318.75 90296 03/04/2004 001985 A E P (ASSOC OF ENVIRO '04 AEP Cf:4/15-18:Hogan,D. 275.00 275.00 90297 03/04/2004 007426 ALLEN, CHARLTON Refund: Security Deposit/Rental 150.00 150.00 90298 03/04/2004 006098 AMERICAN ASSOCIATION OF C Mb: Salazar, Marianne AACE101212 60.00 60.00 90299 03/04/2004 006463 AMERICAN LANDSCAPE Feb Idscp impr: Sports Park 316.00 Feb Idscp impr: Sports Park 296.82 Feb Idscp impr: Slope 210.00 Feb Idscp impr: Slopes 182.00 1,004.82 90300 03/04/2004 000747 AMERICAN PLANNING ASSOCI Mbshp: Commissioners:DM/JT/MO 240.00 240.00 90301 03/04/2004 000101 APPLE ONE, INC. Temp help PPE 2/14 Delaml 624.00 Temp help PPE 2/14 Wills 572.00 Temp help PPE 2/14 Lee 520.00 1,716.00 90302 03/04/2004 007251 AUDIO DYNAMIX INC Mini Quick PA system for MPSC 3,916.71 3,916.71 90303 03/04/2004 002648 AUTO CLUB OF SOUTHERN CA Membership: John Zuna 98647260 44.00 Membership: Levis, Mark 80925362 44.00 88.00 90304 03/04/2004 007438 B I A OF SOUTHERN Storm Wtr Comp.Tmg:3/25:Licitra 129.00 129.00 90305 03/04/2004 004855 BASER, GABRIELE TCSD instructor earnings 504.00 TCSD instructor earnings 373.33 TCSD instructor earnings 358.40 TCSD instructor earnings 182.40 1,418.13 90306 03/04/2004 004778 BERRYMAN & HENIGAR INC Jan prjt mgmt svcs:R.C.Rd Widening 1,525.80 1,525.80 90307 03/04/2004 007419 BOEHM. SUSAN Refund:Kids Love Soccer 50.00 50.00 90308 03/04/2004 007423 BOEN, RACHEL Refund: Security Deposit 100.00 100.00 90309 03/04/2004 006721 BOISE CASCADE OFFICE Office Supplies: Planning 125.84 125.84 Page:1 apChkLst Final Check List Page: 2 03/04/2004 3:40:14PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 90310 03/04/2004 007408 BRENKUS, LINDA Refund: Picnic Shelter rental 25.00 25.00 90311 03/04/2004 005790 BRENTON SAFETY INC. Quick bar tool: Fire sm 84 117.77 117.77 90312 03/04/2004 005103 BUCKLEY, TIM Reimb: Fire House Wodd:2/3-5 66.00 66.00 90313 03/04/2004 007412 CAFFAREL, MARGARET Refund: Sports -Intro to Track 75.00 75.00 90314 03/04/2004 000924 CALIF ASSOC OF PUBLIC Membership: Mary Volimuth 846 90.00 90.00 90315 03/04/2004 005116 CALIF DEPT OF STATE 02103 Ann'I Str Rept Preparation 1,169.84 1,169.84 90316 03/04/2004 000398 CALIF MUNI TREASURERS ASS Investment Wkshp:3/10:Grance 30.00 30.00 90317 03/04/2004 000518 CARE ANIMAL HOSPITAL Police K-9 "Kaos" Medical srvcs 208.32 208.32 90318 03/04/2004 002989 CLEAR IMAGE WINDOW CLEA City hall glass canopy cleaning 45.00 45.00 90319 03/04/2004 006303 CONDUIT NETWORKS, INC configure web for second line 2,750.00 2,750.00 90320 03/04/2004 007437 COOKIE ART St. Patrick's Day winner gifts 90.00 90.00 90321 03/04/2004 006662 COPIES & MORE 5000 Tem. Citizen Corps flyers 323.25 323.25 90322 03/04/2004 001264 COSTCO WHOLESALE 5 shelving units for Sm 84 285.48 285.48 90323 03/04/2004 006954 CRAFTS MEN PLUMBING & HVA Plumber svcs: 6th St. Restrooms 175.00 175.00 90324 03/04/2004 005324 CROSSROADS CHURCH Overall Parade Winner Award 200.00 200.00 90325 03/04/2004 007424 CRUZ, E.FECEO Refund: Security Deposit 100.00 100.00 90326 03/04/2004 004123 D L PHARES & ASSOCIATES Mar Lease & Maint:Old Town Storefr 2,098.68 2,098.68 90327 03/04/2004 006150 DIALOG C COMMUNICATIONS Emerg comm. notification mntc agrmn 2,254.00 2,254.00 Page2 apChkLst Final Check List Page: 3 03/04/2004 3:40:14PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 90328 03/04/2004 005965 DIVERSIFIED PROTECTION Replace tape vault batteries: IS 140.00 140.00 90329 03/04/2004 002701 DIVERSIFIED RISK Feb special events premiums 3,495.00 3,495.00 90330 03/04/2004 007392 DIXON, ELIZABETH Refund: Hawaiian dance: Youth -Beg 16.86 16.86 90331 03/04/2004 001380 E S I EMPLOYMENT SERVICES Temp help PPE 2/20 Cammarota 1,233.74 1,233.74 90332 03/04/2004 003223 EDAW 114C Jan mitigation designs:R.C.Rd 2,628.16 Jan Biological svcs: Pala Bridge 262.50 Jan Biological svcs:Lg Canyon Basin 135.78 3,026.44 90333 03/04/2004 007415 EDWARJS, ALYCE Refund: Picnic shelter rental 30.00 30.00 90334 03/04/2004 005052 EMCOR SERVICE H.V.A.C. prev. mntc @ City Hall 1,986.00 1,986.00 90335 03/04/2004 005251 EQUIPMENT REPAIR SERVICE Mobile equip repair svcs:PW mntc 811.55 Mobile equip repair svcs:PW mntc 381.30 1,192.85 90336 03/04/2004 006487 EUROPEAN CAFE & VINEYARD Refreshments: Budget workshop 38.68 38.68 90337 03/04/2004 001056 EXCEL LANDSCAPE Jan Idscp impr: R.C. & Meadows 129.11 129.11 90338 03/04/2004 004464 EXXONA4OBIL CARD SERVICES Fuel expense for City vehicles 338.15 338.15 90339 03/04/2004 000478 FAST SIGNS Fac Imp Prgm: Orbis Traders 1,679.63 1,679.63 90340 03/04/2004 007425 FAYAZFAR, ELLIE Refund: Security Deposit 100.00 100.00 90341 03/04/2004 000165 FEDERAL EXPRESS INC Express mail services 109.55 109.55 90342 03/04/2004 005289 FEHLER, DEAN Reimb: Paramedic recertification fees 90.00 90.00 Page3 apChkLst Final Check List Page: 4 03/04/2004 3:40:14PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 90343 03/04/2004 003347 FIRST BANKCARD CENTER 007287 UNITED AIRLINES DU Airfare:APA Cf:4/24-28:Chiniaeff 890.70 000747 AMERICAN PLANNING ASSOCI DU APA Conf:4/24-28:Chiniaeff 690.00 007358 APLNVCTC DU HtI:APA Conf:4/24-28:DC/RG/DL 450.00 002652 PAT & CSCARS RESTAURANT DU Refrshmnts: Old Twn Review Mtg 114.65 000747 AMERICAN PLANNING ASSOCI DU Membership: Ron Guerriero 80.00 004492 SIZZLER RESTAURANT DU Refrshmnts:Ping Comm. Mtg 58.66 007023 HUNGRY HUNTER DU Refrshmnts:Ping Comm Mig 53.06 DU Bank chrg 35.00 2,372.07 90344 03/04/2004 001135 FIRST CARE INDUSTRIAL MED New EE physicals & drug testing 70.00 70.00 90345 03/04/2004 007430 FOXEN, LINDA Refund: Security deposit 100.00 100.00 90346 03/04/2004 000175 GOVER14MENT FINANCE OFFI GAAFR review subscription:5/04-4/05 50.00 50.00 90347 03/04/2004 007406 HACIENDA POOLS Refund: Plan ck fees:28500 Pujol 13.24 13.24 90348 03/04/2004 007421 HANCOCK, CHESTER Refund: Security Deposit 100.00 100.00 90349 03/04/2004 007410 HEISERMAN, C. CRAIG Refund:DIF recording fees 11.00 11.00 90350 03/04/2004 000871 HILTON HtI:CPRS Conf:3/10-13:Willcox,J. 500.64 500.64 90351 03/04/2004 000871 HILTON HtI:CPRS Conf:3110-13:McCarthy, C. 500.64 500.64 90352 03/04/2004 000871 HILTON HtI:CPRS Conf:3/10-13:Zigler, G. 500.64 500.64 90353 03/04/2004 000871 HILTON Htl:CPRS Conf:3/10-13:Olsen,K. 500.64 500.64 90354 03/04/2004 000871 HILTON Htl:CPRS Conf:3110-13:Pelletier,J. 500.64 500.64 90355 03/04/2004 000871 HILTON HtI:CPRS Conf:3/10-13:Ruse,Phyllis 500.64 500.64 90356 03/04/2004 000871 HILTON HtI:CPRS Conf:3/10-13:Parker. H. 500.64 500.64 PageA apChkLst 03/04/2004 3:40:14PM Final Check List CITY OF TEMECULA Page: 5 Bank: union UNION BANK OF CALIIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 90357 03/04/2004 000871 HILTON HTCPRS Conf:3/10-13:Martinez,A. 500.64 500.64 90358 03/04/2004 000871 HILTON HtI:CPRS Conf:3/10-13:Camberos,Di 500.64 500.64 90359 03/04/2004 000871 HILTON HILCPRS Conf:3/10-12:Nelson,S. 333.76 333.76 90360 03/04/2004 007414 HOHMAN, AMBER Refund: Dance:Tot Pre -dance 85.00 85.00 90361 03/04/2004 002140 JAGUAR COMPUTER SYSTEMS Final Otly Billing for recurring chrgs 100.00 100.00 90362 03/04/2004 007411 KINCAID, AMY Refund: Yoga -Prenatal Yoga 38.00 38.00 90363 03/04/2004 003631 KLEINFELDER INC Dec designs:R.C.Rd Widening 1,384.00 1,384.00 90364 03/04/2004 007436 LARICCIA, CYNTHIA Reimb: Refreshments: 311 CAC mtg 111.41 111.41 90365 03/04/2004 004412 LEANDE R, KERRY D. TCSD instructor earnings 444.00 TCSD instructor earnings 308.00 TCSD instructor earnings 292.00 1,044.00 90366 03/04/2004 004905 LIEBER"f, CASSIDY & W HITMOR Jan HR legal svcs for TE06040001 96.00 96.00 90367 03/04/2004 003726 LIFE ASSIST INC Paramedic squad supplies: Fire 241.31 241.31 90368 03/04/2004 004230 LINCOLIJ EQUIPMENT INC Stainless Steel Hand Crank: Aquatics 147.23 147.23 90369 03/04/2004 004807 LINE X OF TEMECULA bedliner for new fire prev. truck 415.00 415.00 90370 03/04/2004 007422 LOGAN, DONALD Refund: Security Deposit 100.00 100.00 90371 03/04/2004 006897 LORY, S USAN, J. TCSD instructor earnings 392.00 TCSD instructor earnings 308.00 700.00 90372 03/04/2004 003782 MAIN STREET SIGNS Street Signs for PW Maint Div 129.30 129.30 90373 03/04/2004 004068 MANALILI, AILEEN TCSD Instructor Earnings 1,050.00 1,050.00 90374 03/04/2004 001967 MANPOWER TEMPORARY SER Temp Help w/e 2/22 Dankworth 526.72 526.72 Pages apChkLst 03/04/2004 3:40:14PM Final Check List CITY OF TEMECULA Page: 6 Bank: union UNION BANK OF CALIFORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 90375 03/04/2004 002693 MATROS, ANDREA TCSD Instructor Earnings 280.00 280.00 90376 03/04/2004 003800 MCLAU13HLIN ENGINEERING Prgs Pmt #5:J.W. St/Storm Drain Impr 87,601.37 Credit:C/O# 3 not approved -24,601.37 63,000.00 90377 03/04/2004 007435 MERRY MERMAID MERCANTIL Refund:Secudty Deposit 100.00 100.00 90378 03/04/2004 007431 MEZA, NENA Refund:Digital Cameras 2 - Intern 30.00 30.00 90379 03/04/2004 007210 MIDORI GARDENS Ldscp maint:Veterans/Sam Hicks Par 365.00 365.00 90380 03/04/2004 001384 MINUTEMAN PRESS 5,000 Window Envelopes:H.R.Dept 341.41 Letterhead Stationery for RDA 113.46 Business cards: B. Rush 42.83 Business Cards:Tem. Citizen Corps V 42.83 540.53 90381 03/04/2004 006415 MISS1014 POOLS, INC. Refund:Overpmt Bldg. Permit 298.71 298.71 90382 03/04/2004 004534 MOBILE SATELLITE VENTURES Mar EOC Satellite Phone Svcs 71.93 71.93 90383 03/04/2004 004128 MORAMARCO, ANTHONY J. TCSD Instructor Earnings 324.00 324.00 90384 03/04/2004 000230 MUNIFINANCIAL Sep -Dec Reimb Exp:Dist. Admin 262.40 Credit:Reimb Amt Exceeds Contract -150.08 112.32 90385 03/04/2004 007428 MURRIEfA KNIGHTS OF Refund:Sec.Deposit:2/14/04 100.00 100.00 90386 03/04/2004 001986 MUZAK INC Mar music/video svcs: City Hall 120.86 Mar Music Broadcast:Old Town 64.86 185.72 90387 03/04/2004 002925 NAPA AUTO PARTS Medic Squad Vehicle Parts/Supplies 28.41 28.41 90388 03/04/2004 007439 NATIONAL WHITE COLLAR CRI NW3C Summit:H.Brown:6/8-9/04 100.00 100.00 90389 03/04/2004 005608 NEUMAN, JASON Safety Officer:2/9-11/04:J.Neuman 55.54 55.54 90390 03/04/2004 002037 NEXUS NTEGRATION SERVICE AC Adapter: I.S. Dept 23.70 23.70 90391 03/04/2004 007409 OLD TONN DINING LLC Refund:Overcharge plan check fees 490.00 490.00 PageB apChkLst Final Check List Page: 7 03/04/2004 3:40:14PM CITY OF TEMECULA Bank: union UNION BANK OF CALI FORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 90392 03/04/2004 002105 OLD TOWN TIRE & SERVICE City Vehicle Maint/Repair Svcs 321.03 City Vehicle Maint/Repair Svcs 112.39 433.42 90393 03/04/2004 001171 ORIENTAL TRADING COMPANY Special Event Supplies 248.86 248.86 90394 03/04/2004 003218 PELA Jan TCSD Plan Check Svcs 5,240.00 Credit:Amt Exceeds Purchase Order -1,030.00 4,210.00 90395 03/04/2004 000249 PETTY CASH Petty Cash Reimbursement 348.31 348.31 90396 03/04/2004 006763 PINE, JEANNINE Refund:Sec.Deposit:2128104 100.00 100.00 90397 03/04/2004 001999 PITNEY BOWES 4/01-6/30/04 Postage Meter Rental 309.52 309.52 90398 03/04/2004 004515 PLASTIC LUMBER COMPANY I Neighborhood Street Name Signs 9,506.40 9,506.40 90399 03/04/2004 000254 PRESS ENTERPRISE COMPAN Renew Subscrp:C.Mgr:9298672 154.44 154.44 90400 03/04/2004 003697 PROJECT DESIGN CONSULTAN 1/5-2/8/04 Dsgn Svcs:J.W. Rd. Impry 462.00 462.00 90401 03/04/2004 007413 OUILAN, DORA Refund:Cartooning-Sea Creatures 30.00 30.00 90402 03/04/2004 000981 R H F INC Radar Equip Repair/Maint Sves:P.D. 215.90 P.D. Radar Equip Repair/Maint Svcs 176.65 P.D. Radar Equip Repair/Maint Svcs 129.03 521.58 90403 03/04/2004 006664 R R M DESIGN GROUP Consult Svcs:Citywide Dsgn Guideline 4,761.53 4,761.53 90404 03/04/2004 000262 RANCHO CALIF WATER DIST Feb 01-99-02003-0 Floating Mtr 267.04 Feb 02-79-10100-1 NW Sprts Cmplx 75.53 342.57 90405 03/04/2004 000947 RANCHO REPROGRAPHICS Dup. Blueprints:79S Sidewalk/Ldscp 184.64 184.64 90406 03/04/2004 004584 REGENCY LIGHTING CRC Electrical Supplies 286.40 286.40 90407 03/04/2004 003591 RENES COMMERCIAL MANAGE Remove brush/debds/trees:P. Pkwy 22,500.00 22,500.00 Page:? apChkLst Final Check List Page: 8 03/04/2004 3:40:14PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check# Date Vendor 90408 03/04/2004 000266 RIGHTWAY 90409 03/04/2004 007407 RIGHTWAY PERMITS & APPLI Description Amount Paid Check Total Equipment Rental - Paseo Park 60.78 Equipment Rental - Riverton Park 59.79 Equipment Rental - Veteran's Park 59.79 Equipment Rental - Long Cyn Crk Prk 59.79 Credit: Paseo Park -45.58 Credit:Lng Cyn Crk Prk Repairs -68.83 125.74 Refund:Electric fees 36.00 36.00 90410 03/04/2004 005756 RIVERSIDE CO TREASURER Property Tax Pmt:Bus.Prk Dr. Propert 90411 03/04/2004 000873 ROBER"ES, RONALD H. Reimb:Federal Lobbying:2/10-12/04 90412 03/04/2004 004598 S T K A13CHITECTURE INC Jan design svcs: Roripaugh Fire Stn 90413 03/04/2004 001500 SAN DIE:GO REGIONAL TRAIN Supervisor's Acad:B.G.B.Y.:Jan-Feb Writing for Results:M.A.:01/7-8/04 90414 03/04/2004 000793 SCANTRON FPC CORPORATIO Inspection Request Forms:B&S Dept 90415 03/04/2004 004609 SHREDFORCE INC 90416 03/04/2004 000645 SMART & FINAL INC 90417 03/04/2004 000537 SO CALIF EDISON Document Shred Srvc:P.D.O.T. Stn Supplies for Mtgs:Fire Prev. Volunteer Recogn. Supplies Supplies for Meetings:Finance Teen Prgm Supplies Supplies for Meetings:Finance Feb 2-00-397-5042 City Hall Feb 2-02-351-4946 Sr Ctr Feb 2-18-937-3152 T. Museum Feb 2-11-007-0455 6lh Street Feb 2-22-575-0876 Old Town Feb 2-20-817-9929 P.D. O.T. Sin Feb 2-18-049-6416 Front St Ped Feb 2-21-911-7892 O.T. S.Side Prk L Feb 2-21-981-4720 Hwy 79 Feb 2-19-171-8568 Wedding Chpl Feb 2-24-572-8969 Old Town Feb 2-24-634-0426 Old Town Feb 2-22-057-2226 6th Street Feb 2-22-496-3439 Winchester Rd Feb 2-18-528-9980 Santiago Rd 114,562.25 21.00 2,387.70 1,150.00 245.00 924.22 24.00 191.33 127.70 46.16 33.88 16.46 5,883.87 736.95 450.96 310.25 280.31 188.22 147.31 146.38 64.19 60.61 52.51 51.02 48.79 46.04 42.29 114,562.25 21.00 2,387.70 1,395.00 924.22 24.00 415.53 8,509.70 Pages apChkLst 03/04/2004 3:40:14PM Final Check List CITY OF TEMECULA Page: 9 Bank: union UNION BANK OF CALIFORNIA (Continued) Check H Date Vendor Description Amount Paid Check Total 90418 03/04/2004 000282 SO CALIF MUNICIPAL ATHLETI Softball Summit:J.Willcox:2/11/04 25.00 25.00 90419 03/04/2004 000519 SOUTH COUNTY PEST Pest Control Svcs:City Hall 56.00 Pest Control Svcs:West Wing 40.00 Pest Control Svcs:Sr Ctr 29.00 Pest Control Svcs:P.D.Caboose 29.00 154.00 90420 03/04/2004 007416 SPIKER, VICKI Refund: Picnic Shelter:2/21/04 30.00 30.00 90421 03/04/2004 005786 SPRINT 01/15-02/14/04 Cell Phone Svcs 5,722.74 New Phones/Equip:Var. Depts 1,236.93 Credit Taken Last Month:)=-9469 430.99 7,389.66 90422 03/04/2004 000293 STADIUM PIZZA Refreshments:Council Mtg:2/28/04 31.68 31.68 90423 03/04/2004 007434 STONE, BERNADETTE Refund:Security Deposit 100.00 100.00 90424 03/04/2004 007417 STRACK, MARIA Refund:TemMusicAcad-PopKeyboard 85.00 85.00 90425 03/04/2004 001546 STRAIGHT LINE GLASS INC Remove & repair windows: CRC 628.68 628.68 90426 03/04/2004 003840 STRONGS PAINTING Painting Svcs:Vadous Park Sites 3,900.00 3,900.00 90427 03/04/2004 007427 SYROKA, JOHN Refund:Security Deposit 100.00 100.00 90428 03/04/2004 003599 T Y LIN INTERNATIONAL Jan constr. Support: R.C. Bridge 288.32 288.32 90429 03/04/2004 005985 TECHNOLOGY INTEGRATION G Printer Supplies and Cartridges 479.49 479.49 90430 03/04/2004 006914 TEMECULA COPIERS INC. Canon copier & Fax supplies 262.91 262.91 90431 03/04/2004 007418 TEMECULA TRAFFIC SCHOOL Refund:Security Depst/Room Rental 235.00 235.00 90432 03/04/2004 000307 TEMECULA TROPHY COMPAN Nametags for City Council 175.74 Nameplates: J.Simpson 32.33 208.07 90433 03/04/2004 007429 TEMECULA VALLEY PIN CLUB Refund:Sec.Deposit:2/10/04 100.00 100.00 90434 03/04/2004 007420 TEMECULA VALLEY ROSE SOC Refund:Security Deposit 100.00 100.00 Page!) apChkLst Final Check List Page: 10 03104/2004 3:40:14PM CITY OF TEMECULA Bank: union UNION BANK OFCALIFORMA (Continued) Check # Date Vendor Description Amount Paid Check Total 90435 03/04/2004 004274 TEMECULA VALLEY SECURITY Winchester Crk Pk Locksmith Svcs 358.46 368.46 90436 03/04/2004 003140 TEMECULA VALLEY TAEKWON TCSD Instructor Earnings 80.00 80.00 90437 03/04/2004 004030 TEMECULA VOLUNTEER FIRE Volunteer Fire Co. Reimbursement 2,748.15 2,748.15 90438 03/04/2004 007432 TIM KERR CONSTRUCTION Refund:Grading Dpst:31150 Santiago 500.00 500.00 90439 03/04/2004 003031 TRAFFIC CONTROL SERVICE I Traffic Control Supplies for PW 110.44 110.44 90440 03/04/2004 006192 TRISTAFF GROUP Temp Help w/o 2115 Bradley 520.00 Temp Help w/e 2/22 Bradley 416.00 936.00 90441 03/04/2004 004895 TUMBLES, J.W. TCSD Instructor Earnings 264.00 TCSD Instructor Earnings 153.60 TCSD Instructor Earnings 153.60 TCSD Instructor Earnings 153.60 TCSD Instructor Earnings 70.40 TCSD Instructor Earnings 61.60 856.80 90442 03/04/2004 002065 UNISOURCE Paper Supplies for Copy Center 2,123.43 2,123.43 90443 03/04/2004 004261 VERIZCN CALIFORNIA Reverse 911 Database 2,016.43 Feb xxx-1408 P.D. O.T. Stn 277.17 Feb xxx-2626 P.D. Storefront Stn 213.68 Feb xxx-9897 General Usage 90.12 Feb xxx-3526 Fire Alarm 84.86 Feb lax-2676 General Usage 29.27 2,711.53 90444 03/04/2004 004789 VERIZCN INTERNET SOLUTION Internet Svcs:xx7411 139.90 139.90 90445 03/04/2004 007208 VINCES SPAGHETTI EXPRESS High Hopes Valentines Dance:2/20 346.50 346.50 90446 03/04/2004 001342 WAXIE SANITARY SUPPLY INC CRC Maintenance Supplies 315.09 315.09 90447 03/04/2004 003730 WEST C OAST ARBORISTS INC Slope Tree Trimming Svcs 18,940.00 Slope Tree Trimming Svcs 9,680.00 Slope Tree Trimming Svcs 5,890.00 Citywide Tree Trimming Svcs 4,959.00 Var Parks Tree Trimming Svcs 1,980.00 41,449.00 90448 03/04/2004 003835 WEST COAST SUPPLY Supplies for PW Malm Div 352.12 352.12 Page:10 apChkLst Final Check List Page: 11 03/04/2004 3:40:14PM CITYOFTEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check if Date Vendor Description Amount Paid Check Total 90449 03/04/2004 005995 WESTWAYS & JOURNEY PUBL Mar -Apr Ad in Westways Magazine 4,120.00 4,120.00 90450 03/04/2004 000348 ZIGLER, GAIL EE Computer Loan Prgm 1,446.00 1,446.00 Sub total for UNION BANK OF CALIFORNIA: 1,843,471.35 Page:11 ITEM 4 APPROVAL CITY ATTORNEY. DIRECTOR OF F CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: March 16, 2004 SUBJECT: City Treasurer's Report as of January 30, 2004 PREPARED BY: Karin Grance, Revenue Manager '3 b Shannon Domenigoni, Accountant(& RECOMMENDATION: That the City Council receive and file the City Treasurer's Reportas of January 30, 2004. DISCUSSION: Government Code Sections 53646 and 41004 require reports to the City Council regarding the City's investment portfolio, receipts, and disbursements respectively. Attached is the City Treasurer's Report that provides this information. The City's investment portfolio is in compliance with Government Code Sections 53601 and 53635 as of January 30, 2004. FISCAL IMPACT: None Attachments: City Treasurer's Report as of January 30, 2004 Cash Activity for the Month of January: Cash and hrves[ments as of January 1, 20(4 Cash Receipts Cash Disbursements Cash and Investments as of January 30, 2004 Cash and Investments portfolio: Type of Investment Petty Cash General Checking Flex Benefit Demand Deposits Local Agency Investment Fund Federal Ageacy-Callable Federal Agency- Callable Federal Agency- Callable Federal Agency- Callable Federal Agency- Callable Federal Agency- Callable Federal Agency- Callable Federal Agency- Callable Federal Agency- Callable Checking Account - Parking Citations Certificate of Deposit - Retention Escrow Delinquency Maintenance Account - CFD 88-12 (Investment Agreement) Delinquency Maintenance Account - CFI) 88-12 (Money Market Account) Reserve Fund - CFD 88-12 (Investment Agreement) Reserve Account - CFD 88-12 (Money Market Account) Special Tax Fund - CFD 01-2 (Money Market Account) Admin Expense Fund - CFD 01-2 (Money Market Account) Variable Bond Fund - CFD 01-2 (Money Market Account) Interest Differential Fund - CFD 01-2 (Money Markel Account) Capital Improvement Fund - CFD 01-2 (Money Market Account) Capital Interest Fund - CFD 03-1 (Money Market Account) Reserve Fund - CFD 03-1 (Money Markel Account) City Improvement Fund - CFD 03-1 (Money Market Account) Cal Trans Improvement Fund - CFD 03-:. (Money Market Account) Acquisition Account Fund - CFD 03-1 (Money Market Account) Cost of Issuance Fund - CFD 03-1 (Money Market Account) Capital interest Food - CFD 03-3 (Money Market Account) Reserve Fund - CFD 03-3 (Money Market Account) City Improvement Fund - CFD 03-3 (Money Market Account) EMWD hnprovement Fund - CFD 03-3 (Money Market Account) Acquisition Account Fund - CFD 03-3 (Money Market Account) Cost of Issuance Fund - CFD 03-3 (Money Market Account) City of Temecula City Treasurer's Report As of January 30, 2004 $ 96,759,380 38,760,171 (6,620,432) $ 128,899,119 Maturity/ Purchase Termination Markel Par/Book Institution Yield Date Date Value Balance City Hall r✓a $ 1,500 Union Bank n/a 952,089 (1) Union Bank n/a 15,345 (1) State Treasurer-LAIF 1.528 % 67,045,713 (2) Federal Home Loan Bank 2,250% 5222003 6/192006 998,440 1,000,000 Federal Home Loan Mortgage Co 2.000% 6/62003 6/302006 993,040 1,000,000 Federal Home Lean Bank 1.885% 6262003 1232006 996,250 1,000,000 Federal Home Loan Bank 2,250% 6262003 7242006 997,190 1,000,000 Federal Home Loan Bank 2.500% 7/162003 8/142006 2,000,620 2,000,000 Federal Home Loan Bank 3.430% 12/112003 6/152007 1,002,190 1,000,000 Federal Home Loan Bank 3.500% 12222003 6222007 2,006,260 1,997,500 Federal Home Loan Bank 3.375% 12292003 12292006 2,006,260 2,000,000 Federal Home Loan Mortgage Co 3,000% 12/30/2003 3292007 992,070 996,000 Union Bank Iva 3,511 Community National Bank u/a 214,315 CDC Funding Corp 5.430 % 9/12017 500,000 U.S. Bank (First Am Treasury) 0.440 % 498,342 CDC Funding Corp 5.430 % 9/12017 1,531,469 U.S. Bank (First Am Treasury) 0.440 % 41,879 U.S. Bank (First An Treasury) 0.440 % 441,445 U.S. Bank (First Am Treasury) 0.440 % 466,150 U.S. Bank (First Am Treasury) 0.440 % 2,747 U.S. Bank (First Am Treasury) 0.440 % 131,039 U.S. Bank (First Am Treasury) 0.440 % 3,532,160 U.S. Bank (First Am Treasury) 0."0 % 44,620 U.S. Bank (First Am. Treasury) 0.440 % 872,397 U.S. Bank (First Am Treasury) 0.440 % 1,504,973 U.S. Bank (First Pont Treasury) 0.440 % 1,001,779 U.S. Bank (First Ant Treasury) 0.440 % 2,292,694 U.S. Bank (First Am Treasury) 0.440 % 6 U.S. Bank (First Am Treasury) 0.440 % 1,079,848 U.S. Bank (First Am. Treasury) 0.440% 2,171,120 U.S. Bank (First Am Treasury) 0.440 % 8,625,000 U.S. Bank (First Am Treasury) 0.440 % 3,627,403 U.S. Bank (First Am Treasury) 0.440 % 9,911,518 U.S. Bank (First Am Treasury) 0.440 % 181,449 Page 1 Cash and Investments Portfolio: Maturity/ Purchase Termination Type of Investment Institution Yield Date Date Redemption Fund - CFD 03-04 U.S. Bank (First Am Treasury) 0.440 % (Money Market Account) Reserve Fund - CFD 03-04 U.S. Bank (First Am Treasury) 0.440 % (Money Market Account) Improvement Fund - CFD 03-04 U.S. Bank (First Am Treasury) 0.440 % (Money Market Account) Cost of Issuance Fund - CFD 03-04 U.S. Bank (First Am Treasury) 0.440 % (Money Market Account) Interest Account -RDA TABS U.S. Bank (First Am Treasury) 0.470% (Money Market Account) Reserve Account - RDA TABS U.S. Bank (First Am- Treasury) Iva (Surety Bond) Project Account - RDA TABS U.S. Bank (First Am Treasury) 0.450 % (Money Market Account) Project Account -RDA TABS State Treasurer-LAIF 1.528% (Local Agency Investment Fund) hutallmem Payment Fund - TCSD COPS U.S. Bank (First Am Treasury) 0,440 % (Money Market Account) Delivery Cost Fund - TCSD COPS U.S. Bank (First Am. Treasury) n/a % (Money Market Account) Project Fund - TCSD COPS U.S. Bank (First Am Treasury) 0.440 % (Money Markel Account) Project Fund - TCSD COPS State Treasurer-LAIF 1.528 % (Local Agency Investment Fund) Markel Par/Book Value Balance 56,401 99,627 1,041,344 3,545 11 1 36 6,218,605 66 2 9,494 (1)-This amount is net of outstanding checks. (2} At January 30, 2004 total market valor; (including accrued interest) for the Local Agency Investment Fund (LAIF) was $54,224,832,816. The City's proportianate share of that value is $67,085,370. All investments are liquid and currently available. The City of Temecula's portfolio is in compliance with the investment policy. Adequate funds will be available to meet budgeted and actual expenditures of the City for the next six months. 2,785,976 $ 128,899,119 Page 2 CITY OF TEMECULA Cash and Investments Report Through January 2004 001 GENERAL FUND 100 GAS TAX FUND 101 STATE TRANSPORTATION FUND 120 DEVELOPMENT IMPACT FUND 140 COMMUNITY DEV BLOCK GRANT 150 AB 2766 FUND 160 AB 3229 COPS 165 RDA DEV- LOW/MOD SET ASIDE 170 MEASURE A FUND 190 COMMUNITY SERVICES DISTRICT 192 TCSD SERVICE LEVEL B 193 TCSD SERVICE LEVEL C 194 TCSD SERVICE LEVEL D 195 TCSD SERVICE LEVEL R 210 CAPITAL IMPROV PROJ FUND 261 CFD 88-12 ADMIN EXPENSE FUND 271 HA[2VESTON CFD 01-2 IMPROVEMENT FUND 274 JOHN WARNER AD-CIP 275 WOLF CREEK 2003-ADMIN EXPENSE 280 REDEVELOPMENT AGENCY - CIP PROJECT 300 INSURANCE FUND 320 INFORMATION SYSTEMS 330 SUPPORT SERVICES 340 FACILITIES 380 RDA TABS DEBT SERVICE-TEMECULA 02 390 TCSD COP DEBT SERVICE-TEMECULA 01 460 CFI) 88-12 DEBT SERVICE RESERVE FUND 470 CFI) 01-2 ADMIN/DEBT SERVICE FUND 471 CFI) 98-1 ADMIN EXPENSE FUND 473 CFD 03-1 CROWNE HILL RESERVE FUND 474 JOIN WARNER ASSESSMENT DISTRICT 475 WOLF CREEK CID 2003 Grand Total: Fund Total 27,005,803.40 109,581.47 73,121.07 14,935,581.06 0.00 96,758.70 111,723.00 7,275,130.92 4,544,435.22 616,250.12 135,553.69 356,043.38 130,425.94 25,352.99 19,711,406.75 21,582.61 3,532,159.71 0.00 50,000.00 7,538,253.42 1,311,917.20 743,240.63 208,268.64 72,049.96 2,081,137.47 134,463.45 3,379,969.67 2,120,016.10 11,472.13 6,297,071.18 1,200,917.46 25,596,337.82 128,899,118.55 ITEM 5 APPROVA CITY ATTORNEY -tP �, FINANCE OF CITY MANAGER �_'���i��jj``//``�i'' CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance Herman D. Parker, Director of Community Services DATE: March 16, 2004 SUBJECT: Children's Museum RECOMMENDATION: That the City Council approve an appropriation of $170,000 from Capital Reserves to the Children's Museum. BACKGROUND: The Children's Museum project continues to progress well with the exterior of the building complete and interior wall systems complete. Sparks Exhibits and Environments is currently in the process of installing cabinetry and the exhibits in the facility. On January 13, 2004, the Board of Directors approved Amendment #5 in the amount of $99,998 to the agreement with Sparks Exhibits and Environments to provide for alarm systems and a public address system required by the Fire Department. The need for an additional appropriation was overlooked and should have occurred as part of the Sparks Exhibits and Environments Amendment #5. This appropriation will also cover the cost of furnishings, fencing for safety precautions along the Murrieta Creek, landscaping modifications and unforeseen information systems requests. Currently flooring is also being installed in the museum and staff is developing a variety of different programs to implement and provide to the museum patrons once the facility opens. FISCAL IMPACT: This request will appropriate $170,000 from Capital Reserves to the Children's Museum Project. R:\Ballreich\031604 children approval.doc ITEM 6 APPROVAL CITY ATTORNEY !Wr DIRECTOR OF FINANCE CITY MANAGER ---- tjb2_ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Herman D. Parker, Director of Community Service DATE: March 16, 2004 ���� SUBJECT: Children's Museum Cooperative Agreement / PREPARED BY: Cathy McCarthy, Development Services Administrator ✓ RECOMMENDATION: That the City Council: 1. Approve the Cooperative Agreement between City of Temecula and Friends of the Temecula Children's Museum for the support of the Temecula Children's Museum and operation of the Children's Museum Gift Shop. 2. Approve the Children's Museum Logo and Images License Agreement. BACKGROUND: The construction of the Imagination Workshop — The Temecula Children's Museum and the installation of exhibits is nearing completion. It is anticipated that the facility will be operational and open to the public in June of this year. With the opening of the facility this summer, operation of the gift shop in the museum needs to be addressed. The Friends of the Temecula Children's Museum (The Friends), a local non- profit organization, has requested to operate and manage the gift shop. The Friends have agreed to provide the City with a licensing fee for the first eighteen months of operation of 12% of their net revenues. After the first eighteen months the Friends has agreed to provide the City with 15% of their net revenues every year thereafter. These revenues will be paid on a quarterly basis and provide the Community Services Department with revenues to offset operation of the Children's Museum. The Friends have also agreed to work closely with staff and provide financial assistance to support recreation programs at the facility and also to purchase additional exhibits at the facility. Annually they will meet with the Children's Museum staff and schedule assistance and joint activities as needed. The Friends will also solicit sponsorships and donations and commit those funds to benefit the Children's Museum. The attached document is the Cooperative Agreement between the City of Temecula and Friends of the Temecula Children's Museum. The term of the agreement is for the period ending June 30, 2007 with an option to extend the term for an additional three (3) years. Inventory will need to be purchased to begin gift shop operations. The City will contribute $20,000 towards the purchase of start-up inventory and merchandise for the gift shop. The Friends will maintain a minimum gift shop inventory of $10,000. This will ensure the gift shop is attractive and well stocked. Gift shop hours of operation will coincide with the hours of operation for the museum. R WcCerth=hilcrads Museum\Cooperative Agreement Agenda Report.Eoc The gift shop will be equipped with cabinetry, shelving, display cases, fixtures, storage, cash registers, point of sale software and computers. Should this agreement be terminated, all fixtures, equipment and inventory will become the property of the City to continue gift shop operations. The attached License Agreement grants the Friends of the Temecula Children's Museum the right to use the names, logos and images associated with the Imagination Workshop. The term of this Agreement shall be the same as the Cooperative Agreement. FISCAL IMPACT: The Friends of the Temecula Children's Museum will pay to the City a percentage of their net revenues from the gift shop operations. Funds generated from sponsorships and donations will be used to benefit the Children's Museum. Sufficient funds are available in the current CIP budget to cover the $20,000 for the purchase of start up gift shop inventory and the purchase of fixtures and equipment. ATTACHMENTS: Cooperative Agreement License Agreement R WcCarth=hildren's Museum\Cooperative Agreement Agenda ReportAoc COOPERATION AGREEMENT BETWEEN CITY OF TEMECULA AND FRIENDS OF THE TEMECULA CHILDREN • S MUSEUM FOR THE SUPPORT OF THE TEMECULA CHILDREN, S MUSEUM AND OPERATION OF THE CHILDREN' S MUSEUM GIFT SHOP THIS COOPERATION AGREEMENT is made and entered into by and between the City of Temecula, a municipal corporation ("City") and the Friends of the Temecula Children' s Museum, a California non-profit corporation ("Association") as of March 16, 2004. In consideration of the mutual covenants, conditions and undertakings set forth herein, the parties agree as follows: 1. Recitals. This Agreement is made with respect to the following facts and purposes which each of the parties acknowledge and agree are true and correct: ;1. The City is the owner of certain real property in the City of Temecula located at 42081 Main Street, Temecula, which is know as the Temecula Children' s Museum ("Children' s Museum"). The Children' s Museum is located in a structure, which has been renovated to accommodate the Children' s Museum and includes educational exhibits and interactive displays for children as well as a gift shop and includes plaza areas around the building. b. The Association warrants and represents to the City that it is a non- profit corporation duly incorporated and authorized to do business in the State of California. Association is dedicated to promoting the Temecula Children' s Museum and raising funds to support the Children' s Museum, and its programs, services and exhibits. C. The City and Association desire to enter into this Agreement to provide the terms and conditions upon which Association will support the Temecula Children' s Museum and to operate a gift shop within the Children' s Museum Building. d. The area to be used for the Children' s Museum Gift Shop ("Gift Shop") is designated and described on Exhibit A. and shall be known as the "Premises." The area of the Children' s Museum Gift Shop shall be approximately one thousand (1000) square feet. Exhibit A. is attached hereto and incorporated herein by this reference as though set forth in full. e. As used in this Agreement, 'Director" shall mean the Director of Community Services of the City of Temecula. 757270.6 March 3, 2004 2. Grant of License. a. City hereby grants to Association a license to use the Premises, on the terms and conditions and for the uses hereinafter specified in this License Agreement. b.. Except as specifically provided hereinafter to the contrary, Association shall have the exclusive right and obligation to use the Premises to operate a gift shop in the Children' s Museum Building. Association shall not use the Premises for any other uses without the prior written consent of the Director. 3. Term. Association may utilize the Premises from the date the City issues a certificate of occupancy for the Children' s Museum until June 30, 2007 unless sooner terminated pursuant to this Agreement. City may extend the term for an additional three (3) year term. Association shall not be entitled to begin use of the Premises until all insurance documents required by Section 15 of this License Agreement have been duly completed and are on file with the Director. 4. License Fee. a. Association shall pay to the City a License fee of twelve percent (12%) of the Net Revenues of the Gift Shop, as defined herein, from the commencement of the License until June 30, 2005 ("License Fee"). Commencing July 1, 2005, Association shall pay to the City a License fee of fifteen percent (15%) of the Net Revenues of the Gift Shop from that date until June 30, 2007. b. The license fee shall be paid within thirty (30) calendar days of the end of each calendar quarter based upon the Net Revenues of the Gift Shop during the calendar quarter. Calendar quarters shall end on March 30, June 30, September 30, and December 31 of each year. C. Association shall keep complete and accurate records, in accordance with standard and customary retail business practices, of each transaction or receipt of revenue at the Gift Shop by means of cash register receipts or numbered receipts so as to allow accurate determination of the gross revenues, expenses and Net Revenue from which to calculate the License Fee. Association shall keep and secure all records relating to the Gift Shop, including but not limited to, cash register and revenue receipts, for three (3) years from end of the 757270.6 March 3, 2004 Association's fiscal year in which the record was prepared. The Association's revenue accounting procedures and documentation requirements shall be approved in writing by the City s Director of Finance prior to connnencement of possession of the Premises. Any changes in the Association's revenue accounting procedures and documentation shall also be approved in writing by the City's Director of Finance prior to implementation. The City shall conduct annual financial and accounting; reviews of the Gift Shop operations, including audits, at its sole cost and expense, to ensure proper accounting and compliance with the terms of this Agreement. d. As used in this License, "Net Revenues" shall mean all income or revenue of whatever kind and from any source received by the Association arising from the Association's operation of the Gift Shop, including but not limited to revenue from the sale of merchandise at the Gift Shop, less the operating expenses for the Gift Shop, including but not limited to, employee salaries and benefits, employer taxes, taxes and assessments, insurance, business supplies, equipment, accounting and bookkeeping expenses, fixtures, utilities, inventory expenditures, and such other customary and reasonable expenditures necessary for the efficient functioning of a retail gift store). e. The President of the Association and the Director of Finance of the City are authorized to enter into implementation agreements to establish accounting procedures and further specific definitions for determining Net Revenues and other matters affecting this License, provided the terms of such implementation agreements are not in conflict with the terms of this License. f. Association agrees that all other net revenue from the Gift Shop not paid to the City shall be used by the Association for the design and construction of displays or programs for the Children' s Museum. Association and Director shall work cooperatively in the planning of such displays or programs. Director shall approve such displays and programs prior to the expenditure of any such funds to implement the display or program, and President of the Association and the Museum Manager will meet on or before December 3 1 " of each year to determine where additional Gift Shop revenues may be used to support museum operations or programs. 5. Use Permits. This Agreement is not in lieu of obtaining a Use Permit or Outdoor Event Permit from the City for uses other than a Gift Shop. Association shall procure all permits and licenses: required by the City of Temecula or other governmental entities to conduct special events for fmdraising for the Children' s Museum. Except as provided in this Agreement, Association shall comply with all governmental rules, regulations, statutes, ordinances and conditions of approval of permits. Association agrees to pay all facility use fees applicable to its Use Permit, pursuant to such ordinances and resolutions of the City Council setting fees for use of City facilities. Association shall not be required to pay any City fees for 757270.6 March 3, 2004 regularly scheduled, twice per month corporate fund-raising events on the Property. The dates and times of this recurring event shall be scheduled annually by the Museum Manager. Association may obtain a temporary Alcoholic Beverage Control License for use of the Premises or Property, subject to any conditions imposed in the ABC permit and any permits issued by the City. 6. Saonsorshius/Donations a. Association may solicit sponsorships for the Children's Museum. The sponsor and terms of the sponsorship, including, without limitation, signage, shall be approved in writing by the Director prior to the commencement of the sponsorship. The Director's approval shall not be unreasonably withheld. b.. The City may solicit donations for specific events or programs. In the event the City receives unsolicited donations for the Children's Museum, the City shall hold these funds in dedicated account for the benefit of the Children's Museum. 7. Fixtures. The Premises has been improved with: certain store fixtures, i.e. cash registers, point -of -sale software, computers, which are listed on Exhibit B., attached hereto and incorporated herein as though set forth in full. These fixtures are the property of the City. Association may use these fixtures, and will be responsible for maintaining and repairing said fixtures during the period it uses the Premises. New fixtures purchased with Association funds shall become the property of the City upon termination of this License Agreement. 8. Use of Premises; Merchandise. a. Association shall use the Premises only as a Gift Shop in the Children' s Museum Building. Association shall not interfere with the use and enjoyment of the portion of the Property outside the Premises. b. Association shall be authorized to sell educational toys, gifts and other merchandise that is appropriate for a Children's Museum Gift Shop. Association agrees that all sales of merchandise for sale in the Gift Shop shall be of good quality and condition. City retains the right to require Association to discontinue sale or use of those items the Director reasonably determines the condition of the merchandise or services are not of good quality, condition, or appropriateness, upon five (5) days written notice by the Director. For sales tax purposes, the point of sale for all merchandise shall be the Property. Association shall maintain at all times a minimum often thousand dollars ($10,000.00) in inventory for the Gift Shop. The City shall provide twenty thousand dollars ($20,000.00) towards the purchase of start-up inventory and merchandise for the Gift Shop. Upon termination of this Agreement, for any reason, all inventory and. merchandise shall become the property of the City so as to enable the 757270.6 March 3, 2004 Gift Shop operations to continue. 9. Association Officers, Employees. Agents and Volunteers. Association will use its best efforts to insure that its officers, employees, agents and volunteers conduct themselves in a professional manner. Association shall insure that its officers, employees, agents and volunteers shall at all times conform to all applicable statutes, ordinances and regulations now applicable to the Property and the operation of the Gift Shop, including, without limitation, the mandatory fingerprinting of all employees and volunteers, at Association's expense, pursuant to state law. In the event of any conflict of between this Agreement and the City' s Park Ordinance and regulations, the Park Ordinance and regulations shall control. Association shall maintain a staff adequate to operate and administer all facilities located on the Premises in a safe and orderly manner. 10. Third Partv Agreements. Association shall not, without the express, prior written consent of the Director enter into agreements with third parties concerning, among other things, advertising. and signage at the Premises, operation of concessions, and sale of food, beverage, and concession items at the Premises. 11. Damage Provisions. Association shall pay for the repair and/or replacement of any damaged structure, fixtures, equipment or facilities in areas occupied or used by Association, which are damaged through any act of Association, its officers, employees, agents, volunteers, subcontractors, and persons attending or participating in any Association event. 12. Liens. Association shall not directly or indirectly, create or permit to be created or to remain, and will promptly discharge, at its expense, any mortgage, lien, encumbrance, charge, or pledge of the Premises or fixtures or furnishings, or any part thereof. 13. Improvements. Repairs and Maintenance. Association shall make no substantial alteration or repair to the Premises without the prior written consent of the Director, including but not limited to carpentry, electrical, sewer, paving and painting. Association shall, at its sole cost and expense, repair and maintain in good order the interior of the Premises and the fixtures provided by the City. 14. Return of the Premises. Upon the termination of this Agreement, Association shall return the Premises in as good as condition and repair as the Premises now exist, reasonable wear and tear excepted. 15. Indemnification. To the maximum extent permitted by law, City shall not be liable for any loss, damages, or injury to person or property of any person occasioned by or arising out of any act of Association or of anyone holding under Association, nor the occupancy 757270.6 March 3, 2004 or use of the Premises or any part thereof by or under Association, nor directly or indirectly from any state or condition of said Premises or any part thereof during the tern of this Agreement. Association shall defend, indemnify, protect and hold City and its officers, agents, volunteers, and employees harmless, from any and all damages arising out of any act or omission of Association, its officers, employees, agents subcontractors, volunteers and persons attending Association events on the Premises, except as the same may arise from the City's sole negligence, gross negligence, recklessness, or intentional misconduct (or that of City's agents or employees). 16. Liability Insurance. Association shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the use of the Premises by Association, its agents, representatives, employees or sublicensees. a. Minimum Scone of Insurance. Coverage shall be at least as broad as the following coverages and any updated insurance industry standard policies: (1) Insurance Services Office Commercial General Liability coverage provided on ISO-CGL Form No. CG 00 01 1185 or 88. (2) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. b. Minimum Limits of Insurance. Association shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. The general liability policy shall include non -owned automobile liability insurance. (2) Employer's Liability: $1,000,000 per accident for bodily injury or disease. C. Deductibles and Self -Insured Retentions. Any deductibles or self - insured retentions must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the City, its officers, officials, employees and volunteers; or the Association shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. 757270.6 March 3, 2004 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 Association; products and completed operations of the Association; premises owned, occupied or used by the Association; or automobiles owned, leased, hired or borrowed by the Association. 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 Association'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 Association'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 Association'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 Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANII, unless otherwise acceptable to the City. f. Verification of Coverage. Association shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City or ISO form CG 20 10 1185.. All endorsements are to be received and approved by the City before use commences. As an alternative to the City's forms, the Association's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 757270.6 March 3, 2004 Association shall not be entitled to use the Premises until all required insurance documents are on file with the Director. g. Failure to Comply with Insurance Requirements. hi the event the Association fails to submit the required documentation for insurance to the Director within the times required by this Agreement or the Director receives notice or is made aware of the termination of any required insurance policy, the Director may immediately suspend Association's right to use the Premises and shall cause a notice of default to be issued to the Association. 17. Assignment and Subletting. Association shall not assign its interest in this Agreement or in the Premises to any person or entity without first obtaining the Director's written consent. Any assignment or sublicense without the Director's prior written consent shall be voidable and, at the Director's election, shall constitute a default. 18. Default and Right to Terminate. a.. This Agreement may be terminated by either party, for any reason, with or without cause, by providing two (2) months prior written notice of termination. b. If Association should fail to perform, keep or observe any of the terms, conditions or covenants as set forth in this Agreement, City shall give Association notice to correct the failure within said thirty (30) days, and if such action is not cured by Association within thirty (30) day period, Association shall be in default of this Agreement and Association's rights hereunder shall at the option of the City, be terminated and forfeited. Such election to terminate shall not be construed as a waiver of any claim the City may have against Association, consistent with such termination. If, however, any failure is of such nature that it cannot be physically remedied within thirty (30) days, except for the payment of money, and if Association shall have commenced the elimination of such failure promptly after the receipt of such notice, and shall continuously and diligently proceed in good faith to eliminate such default, then the period for correction shall be extended for such length of time as is reasonably necessary to complete such correction. The failure of Association to fund the necessary corrections shall not justify an extension of the time to cure beyond the initial 30 day period. C. Upon any termination of this Agreement, Association covenants and agrees to surrender and to forfeit this Agreement, and deliver up the Premises peaceably to the City immediately upon any such termination. If said Association shall remain in possession of said Premises after any termination of this Agreement, Association shall be deemed guilty of an unlawful detention o:Fthe Premises. d.. Notwithstanding any other provision of this Agreement to the 757270.6 March 3, 2004 contrary, the City shall not be deemed to be in default until thirty (30) days after notice of default is given by the Association to the City. If such default cannot be cured within such thirty day period, the City shall not be deemed to be in default provided that, within such thirty (30) day period, the City shall commence and thereafter diligently prosecute efforts to cure the default. 19. Legal Remedies. Each party shall have all remedies as may be allowed by law or equity to enforce its rights in this Agreement. No legal action shall be filed by one party against the other party until such time as the other party has received the notice of default as provided in this Agreement. Any such action shall be filed in Riverside County, California. The prevailing party in a court action shall be entitled to reasonable attorney's fees and costs. 20. Lase Restrictions. Association agrees to maintain the Premises in a clean and neat condition, free and clear of garbage and debris. No dumping, storage of hazardous or toxic waste, nor the maintenance of any nuisance, public or private, shall be permitted. No rights across any contiguous parcels are granted by this Agreement and Association agrees to secure all such required access at its sole cost and expense. 21. Utilities. City shall pay for electric, telephone, gas, trash and water service for the Premises. 22. Covenants for Non -Discrimination. The Association covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Premises, nor shall the Association itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, les- sees, subtenants, subles:>ees or vendees of the Premises. 23. Taxes; Assessments. Association shall pay when due all applicable federal, state, or local taxes, fees, charges, or assessments arising from Associations use of the Premises or operations upon the Premises, including, but not limited to, any possessory interest tax which may be imposed upon Association's use of the Premises. 24. Notice. Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by Notice: 757270.6 March 3, 2004 City: CITY OF TEMECULA 43200 Business Park Drive Temecula, CA 92590 Attention: Herman Parker Association: Director of Community Services Friends of the Temecula Children's Museum P.O. Box _ Temecula, CA 92590 Attention: President 25. Entire Agreement. This Agreement, and the documents attached hereto or mentioned herein, contain all of the agreements of the Parties hereto with respect to any matter covered or mentioned in. this Agreement, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. 26. Amendments. No provision of this Agreement may be amended or added to except by an agreement in writing, duly approved by the City Council and the Board of Directors of the Association. 10 757270.6 March 3, 2004 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. CITY OF TEMECULA Michael S. Naggar Mayor ATTEST: Susan Jones, CMC City Clerk APPROVED AS TO FORM: Peter M. Thorson City Attorney FRIENDS OF THE TEMECULA CHILDREN'S MUSEUM, INC., a California Non -Profit Corporation By: _ Name: Title: 11 757270.6 March 3, 2004 By: _ Name: Title: 12 757270.6 March 3, 2004 EXHIBIT A DESCRIPTION AND DEPICTION OF PREMISES 13 757270.6 March 3, 2004 EXHIBITS' The following items contained in Exhibit B shall be provided for gift shop operations. These items shall be maintained and repaired by the Association Children's Museum Q a'- -4 Deschi' lion x X . 2 Cash Regis ;rs 1 Credit Card Verification 2 hand held inventory scanner 2 Inventory management application - licensed software 1 Desktop PC - With XP Operating System 1 HP Printer 1 Microsoft Office XP - Desktop Software License 1 Telephone 1 Desk CHILDREN'S MUSEUM LOGO AND IMAGES LICENSE AGREEMENT THIS LOGO LICENSE AGREEMENT is made and entered into as of March 16, 2004, by and between the CITY OF TEMECULA ("City") and FRIENDS OF THE TEMECULA CHILDREN'S MUSEUM, a California non-profit corporation ("Licensee"). In consideration of their mutual covenants and promises contained herein, the parties agree as follows: Grant of License. 1.1 On the terms and conditions stated in this Agreement, City hereby grants to Licensee and Licensee hereby accepts from City the exclusive right, license and privilege ("the License") during the Term to utilize the names "Imagination Workshop — The Temecula Children's Museum," "Professor Phineas P. Pennypickle," "Pennypickle," and their logos and images ("Property"), the images and descriptions of which is attached hereto as Exhibit A, and incorporated herein, upon and in connection with the manufacture, sale and distribution of the articles of merchandise ("Goods") approved by the City pursuant to Section 3 of this Agreement. Notwithstanding the license granted by this Agreement, City shall retain the right to use the Property for any purposes, including without limitation, the manufacture or sale of any goods or products during the Term of this Agreement. 1.2 Licensee shall be entitled to retain any royalties or income received from the merchandising or sub -licensing of the Property, provided that any such revenue is devoted to the promotion of the Temecula Children's Museum (including, without limitation, advertising, marketing or special promotional events for the Children's Museum Area) or to the improvement of public facilities within the Children's Museum Area as described in that certain Cooperation Agreement between the parties dated March 16, 2004 ("Cooperation Agreement"). 2. Term. The "Term" of this Agreement shall be same term as the term of the Cooperation Agreement and shall run concurrently with the Cooperation Agreement. This Agreement shaifl terminate if the Cooperation Agreement terminates for any reason. Similarly, if the term of the Cooperation Agreement is extended, the term of this Agreement shall be extended for the same period. 3. QRgty Control. 3.1 Licensee shall not distribute or sell any Goods unless and until the nature, quality and style of the Goods as well as any carton, container, packing or wrapping material have been specifically approved in writing by the City Manager, whose approval shall not be unreasonably withheld, nor shall Licensee use any tag, label or similar item or any advertising, promotional or display material in connection with any Goods or bearing the; Property, unless and until such items and materials have been specifically approved in writing by City Manager, whose approval shall not be unreasonably withheld. After samples have been approved pursuant to this section, no changes shall be made without the prior written consent in writing of City Manager, in 764254.2 March 3, 2004 his sole and absolute discretion. The City Manager may delegate this authority further to a City employee or committee. 3.2 Licensee acknowledges that the image of the Property requires that any Goods must be in good taste and meet high standards of quality. Because judgments of taste and quality may be subjective, Licensee agrees that the City Manager may grant or withhold any approval or consent required under this Section in his reasonable discretion. 3.3 Licensee shall cause all Goods to be manufactured, sold and distributed in accordance with all applicable federal, state and local laws. 4. Labeling. Licensee will cause to appear on each item of Goods and on or within all advertising, promotional or display material bearing the Property the notice "Copyright by City of Temecula - All Rights Reserved" and any other notice requested by City Manager; and, where such item or advertising, promotional or display material bears a trademark or service.mark, appropriate statutory notice of registration or application for registration thereof. Should any items of Goods be marketed in a carton, container, packaging or wrapping material bearing the Property, such notice shall also appear on the carton, container, packaging or wrapping material. All tags, labels, imprints or other devices containing any such notice and all advertising, promotional or display materials bearing the Property shall be submitted to City Manager for his written approval prior to use by Licensee. Approval by City Manager shall not constitute waiver of City's rights or Licensee's duties under any provision of this Agreement. The City Manager may delegate this authority further to a City employee or committee. Cit 3 Title and Protection. 5.1 Goodwill. Licensee acknowledges the value of the goodwill associated with the Property and acknowledges that the Property and all rights therein belong exclusively to City, and that the Property has a secondary meaning in the mind of the public. Licensee shall not during the Term or thereafter attack the title or any rights of City in and to the Property or attack the validity of the License. 5.2 Protection of Pronerty. At the option of City, Licensee shall (i) assist City in the procurement of any protection or defense of any of City's rights in the Property, or (ii) on behalf of City cause to be filed all appropriate registration applications to protect the Property and the Merchandising Rights. Licensee shall take all actions necessary or appropriate to protect the Property and City's interests in the Property. 5.3 Enforcement of BighLs. Licensee shall use its best efforts to detect and abate any unauthorized use of the Property by other parties. Unless otherwise directed by City, Licensee shall take all reasonable measures on behalf of itself and City to abate such unauthorized use. 764254.1 February 17, 2004 -2- 5.4 Assignment of Rights by City. Nothing contained in this Agreement shall be construed as an assignment or grant to Licensee of any right, title or interest in or to the Property; all rights relating to the Property are reserved by City except for the License to use the Merchandising Rights only as specifically and expressly provided in this Agreement. Upon expiration or termination of the Term Licensee will be deemed to have assigned, transferred and conveyed to City any trade rights, equities, goodwill or other rights in and to the Property which may have been obtained by Licensee in pursuance of any endeavors under this Agreement (without consideration other than the mutual covenants and consideration of this Agreement); although such assignment, transfer and conveyance shall be deemed effective without the need for any action by Licensee, Licensee shall execute any instruments requested by City to evidence or confirm such assignment, transfer and conveyance. Licensee agrees that use of the Property by Licensee shall inure to the benefit of City and that Licensee shall not at any time acquire any rights in the Property by virtue of any use Licensee may make of the Property. 6. Indemnification of Citv. Licensee shall defend, indemnify and hold harmless City, the City Council and each member thereof, and City's officers, employees and agents (all collectively referred to as "Indernitees") from and against any and all claims, demands, causes of action, damages, losses, liabilities and expenses (including attorneys' fees and costs of defense) incurred in connection with or resulting from the Goods or the use of the Property by Licensee. If any action or proceeding is brought against Indemnitees by reason of any such claim, Licensee upon notice from Indemnitees shall defend Indemnitees at Licensee's expense, by counsel reasonably satisfactory to Indemnitees. 7. Default: Termination. 7.1 The occurrence of any one or more of the following events shall constitute a default and breach of this Agreement by Licensee: (A) The failure by Licensee to observe or perform any of the other covenants, conditions or provisions of this Agreement to be: observed or performed by Licensee, where such failure shall continue for a period of 30 days after written notice thereof by City to Licensee; provided, however, that if the nature of the default is such that more than 30 days are reasonably required for its cure, then Licensee shall not be deemed to be in default if Licensee commences such cure within the 30-day period and thereafter diligently prosecutes such cure: to completion; or (B) the making by Licensee of any general assignment or general arrangement for the benefit of creditors; the filing by or against Licensee of a petition to have Licensee adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Licensee, the petition is dismissed within 60 days); or the appointment of a trustee or a receiver to take possession of substantially all of Licensee's assets or of Licensee's interest in this Agreement, where possession is not restored to Licensee within 30 days; or the attachment, execution or other judicial seizure of substantially all of Licensee's assets or of Licensee's interest in this Agreement, where such seizure is not discharged within 30 days. 764254.1 February 17, 2004 -3- 7.2 In the event of any such default or breach by Licensee, or for any reason whatsoever, City Manager may terminate this Agreement, in his sole and absolute discretion, with or without notice or demand and without limiting City in the exercise of any other right or remedy which City may have by reason of a default or breach. 8. No Citv Warranties. City has made and makes no warranties or representations on which Licensee has relied in entering into this Agreement. Without limiting the generality of the foregoing sentence, City specifically has made and makes no warranties or representations regarding the amount of expenses Licensee will incur in performing its obligations under this Agreement, and the amounts of revenue that Licensee will derive under this Agreement. 9. Notices. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party shall be in writing and shall be deemed given as of the time of hand delivery to the addresses set forth below, or three days after deposit into the United States mail, postage prepaid, by Registered or Certified mail, Return Receipt Requested. Unless notice of a different address has been given in accordance with this section, all such notices shall be addressed as follows: 764254.1 February 17, 20C4 -4- If to City, to: City of Temecula 43200 Business Park Drive Temecula, CA 92590 Attn: City Manager If to Licensee, to: Friends of the Temecula Children's Museum 10. Integrated Agreement; Modification. This Agreement contains all agreements of the parties relating to the Property, the Merchandising Rights and the License, and cannot be amended or modified except by a written agreement. 11. Waiver. No delay or omission in the exercise of any right or remedy of City on any default by Licensee shall impair such right or remedy or be construed as a waiver. Any waiver by City of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 12. Governing Law. This .Agreement shall be construed and interpreted in accordance with the laws of the State of California. 13. Severability. The imenforceability, invalidity, or illegality of any provision of this Agreement shall not render the other provisions unenforceable, invalid, or illegal. 14. Relationship of Parties. City shall not become or be deemed a partner or a joint venturer with Licensee by reason of the provisions of this Agreement, nor shall either party have any authority to obligate or bind the other in any respect, it being intended that each party shall remain an independent contractor responsible for its own actions. 15. Cautions. The captions of this Agreement shall have no effect on its interpretation. 764254.1 February 17, 20C4 -5- IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first wrib:en above. CITY OF TEMECULA ("City") Michael Naggar Mayor ATTEST: Susan Jones, CMC City Clerk Approved as to Form: Peter M. Thorson City Attorney LICENSEE FRIENDS OF THE TEMECULA CHILDREN'S MUSEUM, INC., a California non-profit corporation. By: Name: Title: By: Name: Title: 764254.1 February 17, 2004 -6- Exhibit A TI Q' a� g MFCUTA CHVt9 ITEM 7 R7t;aiml CITY ATTORNEY DIR. OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Tim Thorson, Director of Information Systems DATE: March 16, 2004 SUBJECT: Eden Software Support Agreement Prepared by: Tim Thorson, Information Systems Director RECOMMENDATION: That the City Council authorize the purchase of annual Financials and Payroll Software Support from Eden Systems Inc., for the total amount of $25,415.25. DISCUSSION: The City currently uses the Eden suite of application modules for fund and encumbrance accounting to include payroll. These financial and Human Resources modules provide the City with ultimate control of its financial processes. The Eden Financial/HR Application suite is a Windows -based environment that interacts with Microsoft SQL databases and complies with state and federal regulations. This product is a proprietary application and can only be obtained from Eden Systems Inc. FISCAL IMPACT: Adequate funds are available in the 2003-04 Fiscal Year Budget for the Information Systems Internal Services fund. ATTACHMENT: Software Support Agreement EDE .systems E.de.n S�,ys•t.e.ms, Inc.orporat.ed oftware Lia.e.nse and Use Agre_e.me.nt THIS AGREEMENT, made and entered into by and between Eden Systems, Incorporated (hereinafter "Licensor"), a corporation duty authorized and existing under the State of Washington and having its principal offices at 507 Industry Drive, Seattle, Washington 98188, and the City of Temecula, (hereinafter "Licensee°), a government organization having its principal offices at 43200 Business Park Drive, Temecula, California 92590. Licensor desires to grant to Licensee, and Licensee desires to acquire from Licensor a non- exclusive right and license to use certain computer software as hereinafter defined. Both parties agree they are able to comply with and will satisfy the terms and conditions as set forth in this Agreement Both parties, intending to be legally bound, agree to the following: SECTION 1 -DEFINITIONS The definition of terms set forth in this section shall apply when such terms are used in this Agreement, its exhibits, and any amendments: 1.1 "Licensed Program." The computer program specifically identified within the Exhibits herein as applications within the InForum GoldTM, InForum"A or Command Series'*' product lines, including object code, as well as related procedural code, and documentation of any type which describes it. 1.2 "Licensed Documentation." The system and other documentation made available by Licensor, for the Licensed Program. 1.3 "Enhancements.,, Changes or additions, other than Maintenance Modifications, to the Licensed Program or Licensed Documentation that add significant new functions or substantially improved performance thereto by changes in system design or coding. 1.4 "Error." Problem caused by incorrect operation of the computer code of the Licensed Program or an incorrect statement or diagram in Licensed Documentation that produces incorrect results or causes incorrect actions to occur. 1.5 "Error Correction." Either a software modification or addition that, when made or added to the Licensed Program, establishes material conformity of the Licensed Program to the Licensed Documentation, or a procedure or routine that, when observed in the regular operation of the Licensed Program, eliminates the practical adverse effect on Licensee of such non -conformity. 1.6 "Maintenance Modifications." Modifications or revisions to the Licensed Program or Licensed Documentation that correct Errors. 1.7 "Specifications." The functional performance parameters of the Licensed Program effective on the date of this Agreement, as set forth in Licensed Documentation. 1.8 "Proprietary Information." Unpublished "know-how" and "trade secrets" which shall include, without limitation, computer programs, program designs, algorithms, subroutines, system specifications, test data, charts, graphs, operation sheets, and all other technical information, owned by Licensor or under its control, relating to the development and production or use of the Licensed Program and the design, configuration, programming, and protocol of the Licensed Program. 1.9 "Normal Working Hours." The hours between 8AM and 510M PST (Pacific Standard Time), on the days Monday through Friday, excluding regularly scheduled holidays of Licensor. 1.10 "Releases." New versions of the Licensed Program, as specified by Licensor, which new versions may be prompted by Error Corrections and/or Enhancements. 1.11 "Support Agreement Term." A fiscal year, commencing on January 1 and ending on December 31, during which support and services are provided subject to the terms and conditions set forth in Section 9, Software Support. SECTION 2 - GRANT OF LICENSE 2.1 Scope of License. Subject to compliance by Licensee with the terms hereof, Licensor hereby grants to Licensee, in perpetuity unless terminated as provided herein, a personal, non-exclusive, nontransferable license (without the right of sublicense), to: .. Install, use, and execute the Licensed Program on computers owned or leased and used by Licensee at its Page 1 07/10/O1 facilities, for up to the number of concurrent users specified in this Agreement in Exhibit Al, for the sole and express purpose of supporting the internal business activities of Licensee; and a Use the Licensed Documentation only in conjunction with installation and use of the Licensed Program. 2.2 Delivery of Materials. Licensor shall deliver one copy of the Licensed Program and Licensed Documentation to Licensee within a reasonable time following final execution of this Agreement. 2.3 Minimum Hardware and Software Requirements. Licensee acknowledges that in order to be executed, Licensee's computers must meet or exceed the minimum published hardware, software, and communication requirements for the Licensed Program. Licensee agrees such requirements are subject to change, and that future versions of the Licensed Program may have different hardware and software requirements that those presently in effect. The acquisition of necessary hardware, software, and communications equipment meefing the requirements then in effect shall be the sole responsibility of Licensee. Licensee acknowledges that Licensor software support does not cover third party software unless otherwise specified. 2.4 Necessity for Third -party Software. Licensee acknowledges that in order to be executed, the Licensed Program requires certain third -party software not provided by Licensor. The acquisition of necessary licenses and support for this software shall be the sole responsibility of Licensee. Licensee acknowledges that Licensor software support does not cover third party software unless otherwise specified. 2.5 Assignment of Rights In Licensee Maintenance Modifications; and Enhancements. All right, title, and interest in rail Maintenance Modifications and Enhancements developed by Licensee during the term of this Agreement remains with Licensor. Licensee agrees that such Maintenance Modifications and Enhancements shall be used by Licensee, and will not be distributed or otherwise made available to any third party other than Licensor. 2.6 Availability of Licensor Enhancements. Licensor agrees to offer to Licensee a license to Enhancements that Licensor develops and offers generally to licensees of the Licensed Program according to the terms under Section 9.1.b. 2.7 Licensee Notification and Delivery of Materials. Licensee shall notify and deliver to Licensor one copy of any Maintenance Modifications and Enhancements developed by Licensee within a reasonable period after development. SECTION 3 - TITLE TO MATERIALS 3.1 Title to Licensed Program and Licensed Documentation. All right, fide, and interest in and to the Licensed Program and Licensed Documentation, including the media on which the same are furnished to Licensee, are and shall remain with Licensor. Licensee acknowledges that no such rights, titre, or interest in or to the Licensed Program and the Licensed Documentation is granted under this Agreement, and no such assertion shall be made by Licensee. Licensee is granted only a limited right of use of the Licensed Program and Licensed Documentation as set forth herein, which right of use is not coupled with an interest and is revocable in accordance with the terms of this Agreement. 3.2 Title to Enhancements and Maintenance Modifications; Restrictions on Use, Disclosure, Access, And Distribution. All right, title, and interest in and to any Enhancements and Maintenance Modifications developed by either Licensor or by Licensee shall be and remain with the Licensor. Licensee shall treat all such Enhancements and Maintenance Modifications in accordance with the restrictions and limitations set forth herein respecting Licensed Programs and Licensed Documentation. SECTION 4 - FEES AND PAYMENTS 4.1 License Fee. In consideration of the licenses granted hereunder, Licensee shall pay Licensor a one-time license fee as well as other associated costs as further defined in Exhibit Al, attached hereto. 4.2 Software Support. Software Support is subject to the terms and conditions of Section 9, Software Support, and may be offered, at the Licensor's sole option, on a year by year basis. 4.3 Per Diem. Charges for meals and incidental expenses associated with the delivery of the Licensed Program will be charged on a per diem basis. The rate for such per them shall be the maximum meals and incidental expenses allowed for Licensee's locality as specified in 41 CFR Page 2 07/10/01 Section 301 Appendix A of the code of Federal Regulations. 4.4 Other Costs. Other costs, including but not limited to air/train/taxi fare, charges for reasonable and normal travel time to and from the customer site, parking, freight costs, reproduction charges, and other incidental expenses incurred by Licensor on account of this Agreement, shall be billed to the Licensee. 4.5 Administrative Fee. Licensor shall have the right to charge Licensee a 5% administrative fee for all invoices which are over 30 days past due. 4.6 Payment. Payment for all fixed fees and charges shall be in accordance with the payment schedule set forth in Exhibit B — Billing/Payment Schedule. Payment for all estimated fees and charges shall be in accordance with the terms and conditions set forth in Exhibits D - Services and E — Committed Modifications. 4.7 Taxes. The fees and charges specified in this section are exclusive of any federal, state, or local excise, sales, use, and similar taxes assessed or imposed with respect to the service and support provided hereunder. Licensee shall pay any such amounts upon request of Licensor accompanied by evidence of imposition of such taxes. SECTION 5 - PROPRIETARY PROTECTION OF MATERIALS 5.1 Acknowledgment of Proprietary Materials; Limitations on Use. Licensee acknowledges that the Licensed Program and Licensed Documentation are unpublished works for purposes of federal copyright law and embody valuable confidential and secret information of Licensor, the development of which required the expenditure of considerable time and money by Licensor. Licensee shall treat the Licensed Programs and Licensed Documentation in confidence and shall not use, copy, or disclose, nor permit any of its personnel to use, copy, or disclose the same for any purpose that is not specifically authorized under this Agreement. In the event of a public records request for the Licensed Program and Licensed Documentation, Licensee shall promptly provide a copy of such request to Licensor so that it has at least seven business days from Licensor's receipt of such copy in which to seek an order restraining the Licensee from disclosing the Licensed Program and Documentation pursuant to such public records request. If Licensor does not obtain a restraining order within such period of time, Licensee may disclose the Licensed Program and Licensed Documentation pursuant to such public request as Licensee deems appropriate. 6.2 Secure Handling. Except for copies of the Licensed Program installed and operated upon its computers as permitted hereunder, Licensee shall require that the Licensed Program and Licensed Documentation be kept on Licensee's premises which shall be maintained in a manner so as to reasonably preclude unauthorized persons from gaining access thereto, and Licensee shall permit access only as necessary for either party's use thereof in accordance with the terms of this Agreement. 5.3 Proprietary Legends. Licensee shall not permit anyone other than Licensor to remove any proprietary or other legend or restrictive notice contained or included in any material provided by Licensor. 5.4 Reproduction of Licensed Documentation. Licensee may reproduce the Licensed Documentation provided by Licensor, provided that such reproductions are for the private internal use of Licensee, and all such reproductions bear Licensor's copyright notices and other proprietary legends. 5.5 Injunctive Relief. Licensee recognizes and acknowledges that any use or disclosure of the Licensed Program or Licensed Documentation by Licensee in a manner inconsistent with the provision of this Agreement may cause Licensor irreparable damage for which remedies other than injunctive relief may be inadequate. In the event of such a violation of this Agreement. Licensor shall be entitled, upon application to a court of competent jurisdiction, to a temporary restraining order or preliminary injunction, to restrain and enjoin Licensee from such violation, without prejudice to any other remedies available to Licensor. 5.6 Technical Protections. Licensor may from time to time prescribe password protection as an additional security measure for the Licensed Program, and Licensee shall cooperate with Licensor in connection therewith. 6.7 Survival of Terms. The provisions of Sections 5.1 through 5.6 shall survive termination of this Agreement for any reason. Page 3 07/10/O1 SECTION 6 - LIMITED WARRANTY, LIMITATION OF LIABILITY, AND INDEMNITY 6.1 Limited Warranty Against Infringement Licensor warrants that the Licensed Program and Licensed Documentation as delivered to Licensee do not infringe any third -party rights in patent, copyright, or trade secret in the United States. 6.2 Limited Warranty of Conformity. Licensor warrants, for the benefit only of Licensee, that for the life of the Agreement, the Licensed Program will conform in all material respects to the Licensed Documentation (except for modifications made by Licensee or by Licensor at the request of Licensee), but only if Licensee maintains uninterrupted Software Support as described in Section 9. Licensor assumes no responsibility for obsolescence of the Licensed Program nor for lack of conformity occurring from Licensee's failure to update the Licensed Program with distributed Enhancements, Maintenance Modifications, or Error Corrections. 6.3 Exclusive Remedy. As the exclusive remedy of Licensee for any nonconformity or defect constituting an Error in the Licensed Program for which Licensor is responsible, Licensor shall use commercially reasonable efforts to provide Maintenance Modifications with respect to such Error. However, Licensor shall not be obligated to correct, cure, or otherwise remedy any Error in the Licensed Program resulting from any (1) modification of the Licensed Program by Licensee, or (2) failure of Licensee to notify Licensor of the existence and nature of such nonconformity or defect promptly upon its discovery. 6.4Disclaimer. EXCEPT A.SSPECIFICALLY SET FORTH HEREIN, LICENSOR MAKES NO WARRANTIES, WHETHER EXPRESS OR IMPLIED, REGARDING OR RELATING TO THE LICENSED PROGRAM OR LICENSED DOCUMENTATION OR TO ANY OTHER MATERIALS FURNISHED OR PROVIDED TO LICENSEE HEREUNDER. LICENSOR SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO SAID MATERIALS OR THE USE THEREOF. 6.6 Limitation of Liability. EXCEPT WITH RESPECT TO LIABILITY ARISING FROM CLAIMS OF INFRINGEMENT OF THIRD -PARTY RIGHTS IN THE UNITED STATES IN COPYRIGHT, TRADE SECRET, OR PATENT, IN NO EVENT SHALL LICENSOR BE LIABLE UNDER ANY CLAIM, DEMAND, OR ACTION ARISING OUT OF OR RELATING TO ITS PERFORMANCE OR LACK THEREOF UNDER THIS AGREEMENT FOR ANY SPECIAL, INDIRECT, EXEMPLARY, OR CONSEQUENTIAL DAMAGES, WHETHER OR NOT LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH CLAIM, DEMAND, OR ACTION. 6.6 Licensee Indemnffication. Licensee shall and does hereby agree to indemnify, hold harmless, and save Licensor from liability against any claim, demand, loss or action (1) resulting from Licensee's use or modification of the Licensed Program and Licensed Documentation and (2) alleging that any Maintenance Modifications made by Licensee infringe any third -party rights in the United States respecting copyright, trade secret, or patent. 6.7 Licensor Indemnification. Licensor shall and does hereby agree to indemnify, hold harmless, and save Licensee from liability against any claim, demand, loss, or action alleging that the Licensed Program and Licensed Documentation or any Maintenance Modifications or Enhancements made by Licensor infringe any third -party rights in the United States respecting copyright, trade secret, or patent. 6.6 Survival of Terms. The provisions of Sections 6.1 through 6.7 shall survive termination of this Agreement. SECTION 7 - TERM AND TERMINATION 7.1 Term. This Agreement shall commence on the date and year contained herein and shall continue until terminated in accordance with the terms thereof. 7.2 Termination by Either Party. Either party may terminate this Agreement upon 60 days written notice to the other party if the other party commits a breach of any term hereof and fails to cure said breach within that 60-day period. Such notice shall set forth the basis of the termination. 7.3 Actions Upon Termination. Upon termination of this Agreement for any reason, Licensee shall immediately cease use of, and return forthwith to Licensor, the Licensed Program and Licensed Documentation, and any copies or portions thereof, including Maintenance Modifications or Enhancements. SECTION 6 - MISCELLANEOUS 6.1 Entire Agreement. This Agreement Page 4 07/10/01 constitutes the entire Agreement between the parties and supersedes all proposals, presentations, representations, and communications, whether oral or in writing, between the parties on this subject. Neither party shall be bound by any warranty, statement, or representation not contained herein. In the event of any conflict in the terms and conditions of this Agreement, the documents shall control in the following order: This Software License and Use Agreement; b. Licensor's Response to Licensee's Request for Proposal, if applicable; C. Licensee's Request for Proposal, if applicable. 8.2 No Assignment. Licensee shall not sell, transfer, assign, or subcontract any right or obligation hereunder without the prior written consent of Licensor. Any act in derogation of the foregoing shall be null and void; provided, however, that any such assignment shall not relieve Licensee of its obligations under this Agreement. 8.3 Force Majeurs. Excepting provisions of this Agreement relating to payment of license fees, and protection of Licensor's Proprietary Information, neither party shall be in default of the terms hereof if such action is due to a natural calamity, or similar causes beyond the control of such party. 8.4 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 8.5 Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be contrary to Ilaw, the remaining provisions of this Agreement will remain in full force and effect. 8.6 Notice. Any notice required or permitted to be made or given by either part/ under this Agreement shall be made in writing and delivered by hand or by certified mail, postage prepaid, addressed as first set forth above or to such other address as a party shall designate by written notice given to other party. 8.7 Acceptance Testing. Within ten (10) business days of Licensor's notification to Licensee that the Licensed Program or portion thereof is installed and the applicable training administered, Licensee shall begin performance of Acceptance Testing, for the sole and express purpose of determining whether the Licensed Program operates as described in the Licensed Documentation. Licensee must complete such Acceptance Testing within thirty (30) days of commencement of testing. The passage of the thirty (30) day testing period without official written notification from Licensee to Licensor that module of Licensed Program has failed Acceptance Testing indicates that the module is accepted and that any portion of the license fees attached to Licensed Program's acceptance are due and payable. 8.8 Failure of Acceptance Testing, Retesting. If the parties agree that the Licensed Program does not successfully pass Acceptance Testing, the Licensee shall notify Licensor in writing ("first notice of failure") and shall specify with as much detail as possible in which respects the Licensed Program failed to pass the Acceptance Testing. Licensor shall make such necessary corrections and modifications in the Licensed Program to establish a reasonable basis for additional Acceptance Testing within a period of thirty (30) days from the first notice of failure. Licensor shall notify Licensee when such retesting can begin and the Licensee shall complete Acceptance Testing within a period of ten (10) business days from the date of notification. If the parties agree that the Licensed Program continues to fail Acceptance Testing, the Licensee shall notify Licensor in writing of the Licensee's intention to terminate and if the Licensor fails to remedy the defect within (60) days of receipt of said notification, the Licensee has the right, at its option, to terminate the Agreement by giving written notice of such termination to the Licensor. Upon the Licensee's termination of this Agreement due to failure of the second Acceptance Test, the Licensee shall promptly return the Licensed Program and documentation and all related materials to the Licensor. 8.9 Acts of Insolvency. The Licensee may terminate this Agreement by written notice to the Licensor if the Licensor becomes insolvent, makes a general assignment for the benefit of creditors, suffers or permits the appointment of a receiver for its business or assets, becomes subject to any proceeding under any domestic bankruptcy or insolvency law or publicly announces liquidation proceedings. 8.10 Insurance. Licensor shall 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 Licensor its agents, representatives, or employees. The limits of this insurance shall be consistent with the limits established in Exhibit H. Licensor's insurer may provide complete, certified copies of all required insurance policies, including Page 5 07/10/01 { j endorsements effecting the -coverage required by the limits contained in Exhibit H. 8.11 Equal Opportunity Employer. Licensor shall not discriminate in its recruiting, hiring, promotion, demotion, or termination practices on the basis of race, religious creed, color, national origin, ancestry, sex, age, or physical handicap in the performance of this Agreement. SECTION 9 - SOFTWARE SUPPORT 9.1 Scope of Service. Licensor shall render support and services during Normal Working Hours for the following: Telephone Support - Calls for assistance related to operation of the Licensed Program, reporting of a potential error condition or abnormal termination of a program, or request for minor assistance related to the Licensed Program; n. Support Enhancements - Selected Enhancements, the nature and type of which shall be determined solely by the Licensor. Such provision shall not preclude Licensor from providing other Enhancements of the Licensed Program for license fees, training charges, and other related service fees and charges. c Source Code Maintenance - Library of Licensed Program maintained by Licensor for Licensee complete with modifications authorized by Licensee and performed by Licensor. d. Software Warranty — If Licensee obtains Software Support from Licensor, and such Software Support is in effect without interruption from inception of this Agreement, then Licensor will warrant the Licensed Program to be free of errors for the life of this Agreement. 9.2 Fees and Charges. Licensee shall pay Licensor annual support charges based on an annual rate determined by Licensor at the beginning of each SupportAgreement Term. Such annual rate shall be multiplied times the amounts shown in Exhibit Al under the column headed "License Fee (Support Basis)" for each covered product. No increase in the support rate shall be in excess of 10% of the support rate for the prior year. All annual support charges are due and payable on or before the 1 a working day of each Support Agreement Term. Failure to make such payment shall constitute cancellation and termination of support by Licensee and no further service or support will be provided by Licensor. 9.3 Licensee Responsibilities. Licensee shall be responsible for the procuring, installing, and maintaining all computer equipment, telephone lines, communications interfaces, and other hardware necessary to operate the Licensed Program and to obtain from Licensor the services called for according to Licensor's then existing policy. 9.4 Proprietary Rights. To the extent that Licensor may provide Licensee with any Error Corrections or Enhancements or any other software, including any new software programs or components, or any compilations or derivative works of the Licensed Program prepared by Licensor, Licensee may (1) install copies of the Licensed Program adequate to serve the concurrent users specified in this Agreement in Exhibit Al, in the most current form provided by Licensor, in Licensee's own facility; and (2) use such Licensed Program in a manner consistent with the requirements of the Agreement, for purposes of serving Licensee's internal business needs. Licensee may not use, copy, or modify the Licensed Program, or make any copy, adaptation, transcription, or merged portion thereof, except as expressly authorized by Licensor. The Licensed Program is and shall remain the sole property of Licensor, regardless of whether Licensee, its employees, or contractors may have contributed to the conception of such work, joined in the effort of its development, or paid Licensor for the use of the work product. Licensee shall from time to time take any further action and execute and deliver any further instrument, including documents of assignment or acknowledgment, that Licensor may reasonably request in order to establish and perfect its exclusive ownership rights in such works. Licensee shall not assert any right, title, or interest in such works, except for the non-exclusive right of use granted to Licensee at the time of its delivery or on -site development. 9.5 Disclaimer of Warranty and Limitation of Liability. EXCEPT AS EXPRESSLY SET FORTH HEREIN, LICENSOR EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES CONCERNING THE SYSTEM OR THE SERVICES TO BE RENDERED HEREUNDER, WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Page 6 07/10/01 9.6 Termination of Support. Support maybe terminated as follows: a. Upon the termination of the License Agreement; or b. Upon notification by either party to the other, at the beginning of any Support Agreement Term; c Upon 60 days' prior written notice if the other party has materially breached the provisions of this Agreement and has not cured such breach within such notice period. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as set forth below. [Licensee] By: Shaw N IS0; Signature:./ ts Title: City Manager Date: [Licensor] Eden Systems„ Inc. By: Slgnaturtfal�"kkjl�--__ Title: f 2� 5 11� C!7!J Date: '1 — 6 0 — 0 ) ATTEST: City APPROVED Pefer M. Thorson City Attorney Page 7 07/10/01 Eden Systems P.O. Box 678076 Dallas, TX 75267-8076 -Description Amount Financials software Support 16,023.90 Financial Products for 2004 Other Software Support 258.45 Data Dictionaries for 2004 -Payroll Software Support 9,131.90 Pa roll/HR Products for 2004 Total 25,414.25 ITEM 8 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: John Meyer, Redevelopment Director Y-40 DATE: March 16, 2004 SUBJECT: Purchase and Sale Agreements for Property located in Old Town RECOMMENDATION: It is Recommended that the City Council: 1. Adopt a Resolution entitled: RESOLUTION NO. 04- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT EIVTITLED "PURCHASE AND SALE AGREEMENT AND E13CROW INSTRUCTIONS" FOR CERTAIN REAL PROPERTY LOCATED ALONG THE NORTH SIDE OF MAIN STREET, EAST OF MERCEDES (APN 922-032-021, 022 and 028) IN THE CITY OF TEMECULA 2. Adopt a Resolution entitled: RESOLUTION NO. 04- RIESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT EIVTITLED "PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS" FOR CERTAIN REAL PROPERTY LOCATED ALONG THE EAST SIDE OF MERCEDES NORTH OF 2ND STREET (APN 922-042-007) IN THE CITY OF TEMECULA 3. Authorize the expenditure in an amount not to exceed $723,000 for acquisition, escrow, closing costs, appraisal, soils testing, and related fees. RA01dtown\0TACQ\Staff Report OT Acq Mar 16, 2004.doc BACKGROUND: Per Council direction, staff has been working with several property owners on the purchase of the property generally located between Mercedes Street and the freeway in Old Town. The City's appraiser performed appraisals of the property. The offers and accepted purchase prices are reflective of the appraised value. A Phase I Environmental Analysis has been conducted on the properties and it has been determined that there is low potential for the presence of hazardous waste or unacceptable soil conditions. The following purchase prices represent an all-inclusive settlement and full payment of just compensation for the acquisition of all property interests. Dixon No St Address (APN 922-032-021, 022 & 028) $435,000 GWN No St Address (APN 922-042-007) $268,000 Total $703,000 Additional fund authorization in the amount of $20,000 is requested to cover escrow, closing costs, soils testing, and related fees. The Agency is looking for additional opportunities to provide additional off-street public parking or other public uses. FISCAL IMPACT: The $723,000 acquisition cost will be funded from the FY 04-08 CIP Budget, Old Town District Parking (280-199-825-5700) which has sufficient funding. Attachments 1. Resolutions 2. Purchase and Sale Agreements R101dtown\0TACQ\Sta1T Report OT Acq Mar 16, 2004.doc RESOLUTION NO. RDA 03- _ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS" FOR CERTAIN REAL PROPERTY LOCATED ALONG THE NORTH SIDE OF MAIN STREET, EAST OF MERCEDES (APN 922-032-021, 022 AND 028) IN THE CITY OF TEMECULA THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: that: Section 1. The City Council of the City of Temecula herebyfinds, determines and declares a. The City is currently implementing the Redevelopment Plan for Redevelopment Project No. 1--1988, originally approved by the Board of Supervisors of Riverside County on July 12, 1988 prior to incorporation of the City of Temecula and subsequently approved and transferred to the Redevelopment Agency of the City of Temecula on April 9, 1991 (the "Plan"). b. The City proposes to purchase the property described in the "Purchase and Sale Agreement and Escrow Instructions" attached hereto as Exhibit A. and located along the north side of Main Street, East of Mercedes (APN 922-032-021, 022 and 028) in the City of Temecula for redevelopment purposes consistent with the Agency authority under the Plan and the Community Redevelopment Act, Health and Safety Code Section 33000 et seq. C. The Agreement is consistent with the Plan and with the Implementation Plan adopted by the Agency. d. The City Council has duly considered all terms and conditions of the proposed Agreement and believes that such agreement is in the best interests of the City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements. e. This action is being undertaken pursuant to the Plan for which a full and complete Environmental Impact Report was prepared and certified prior to adoption of the Plan. Moreover the acquisition of property by itself will have no impact on the environment as it is simply the change in ownership of the property without a change in the physical condition of the property. None of the conditions described in 14 Cal. Admin. Code § 15162 are found to exist. Therefore, pursuant to the provisions of CEQA and, specifically, 14 Cal. R901dtown\0TACQ\Acquisiti0n Resos 1216\Resdixon.doc Admin. Code §§ 15162 and 15180, neither a subsequent nor a supplemental Environmental Impact Report is required for the subject agreement. Section 2. The City Council hereby approves that certain "Purchase and Sale Agreement and Escrow Instructions" between the City of Temecula, a public body corporate and politic, and Marion L. Dixon, which Purchase Agreement is dated as of March 16, 2004. The Mayor of the City of Temecula is hereby authorized and directed to execute the Agreement on behalf of the City. R:\Old\own\OTACQ\Acquisition Resos 1216\Resdixon.doc PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula this 16'h day of March 2004. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF TEMECULA) I, Susan W. Jones, CMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. RDA 04- was duly and regularly adopted by the City Council of the City of Temecula at a regular ;meeting thereof held on the 16th day of March, 2004, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk R101dtow \OTACQ\Acquisition Resos 1216\Resdixon.doc RESOLUTION NO. RDA 03- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS" FOR CERTAIN REAL PROPERTY LOCATED ALONG THE EAST SIDE OF MERCEDES NORTH OF 2No STREET (APN 922-042-007) IN THE CITY OF TEMECULA THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: that: Section 1. The City Council of the City of Temecula hereby finds, determines and declares a. The City is currently implementing the Redevelopment Plan for Redevelopment Project No. 1--1988, originally approved by the Board of Supervisors of Riverside County on July 12, 1988 prior to incorporation of the City of Temecula and subsequently approved and transferred to the Redevelopment Agency of the City of Temecula on April 9, 1991 (the "Plan"). b. The City proposes to purchase the property described in the "Purchase and Sale Agreement and Escrow Instructions" attached hereto as Exhibit A. and located along the east side of Mercedes north of 2nd Street (APN 922-042-007) in the City of Temecula for redevelopment purposes consistent with the Agency authority under the Plan and the Community Redevelopment Act, Health and Safety Code Section 33000 et seq. C. The Agreement is consistent with the Plan and with the Implementation Plan adopted by the Agency. d. The City Council has duly considered all terms and conditions of the proposed Agreement and believes that such agreement is in the best interests of the City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements. e. This action is being undertaken pursuant to the Plan for which a full and complete Environmental Impact Report was prepared and certified prior to adoption of the Plan. Moreover the acquisition of property by itself will have no impact on the environment as it is simply the change in ownership of the property without a change in the physical condition of the property. None of the conditions described in 14 Cal. Admin. Code § 15162 are found to exist. Therefore, pursuant to the provisions of CEQA and, specifically, 14 Cal. Admin. Code §§ 15162 and 15180, neither a subsequent nor a supplemental Environmental Impact Report is required for the subject agreement. RA01dtown\0TACQ\Acquisition Resos 1216\Resgreatwhitenonh.doc Section 2. The City Council hereby approves that certain 'Purchase and Sale Agreement and Escrow Instructions" between the City of Temecula, a public body corporate and politic, and Stephen E. McKenzie which Purchase Agreement is dated as of March 16, 2004. The Mayor of the City of Temecula is hereby authorized and directed to execute the Agreement on behalf of the City. RAOJdtown\OTACQ\Acquisition Resos 1216\Resg eatwhitenorth.doc PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula this 161h day of March 2004. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF TEMECULA) I, Susan W. Jones, CMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. RDA 04-_was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 16th day of March, 2004, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk R:\Oldtown\OTACQWcquisition Resos 1216aesgreatwhitenorthAm AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS First American Title Company 3625 Fourteenth Street Riverside. CA 92501 Attention: Debbie Newton, Title Officer Re: Escrow No.: THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS (this "Agreement") dated as of March 16, 2004, is entered into by and between GREAT WHITE NORTH, LP, (collectively "Seller'), and the CITY OF TEMECULA, a public body, corporate and politic ("Buyer"), upon the following terms and conditions: SALE AND PURCHASE PRICE. 1.1 Sale and Purchase. Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller good and marketable fee simple title to that certain real property of approximately 18, 293 square feet identified as Assessor's Parcel Number 922-042-007, located in the City of Temecula, County of Riverside, State of California, and more particularly described on Exhibit "A" attached hereto, together with all easements, privileges, permits, licenses, entitlements, and other rights appurtenant thereto ("Real Property"), and all buildings, fixtures, equipment, structures, parking areas, landscaping, appurtenances and other improvements constructed or situated on the Real Property and owned by Seller ("Improvements") (the Real Property and Improvements hereinafter collectively "Property'), for the price and upon all of the terms and conditions set forth herein. Buyer is purchasing the Property for a public purpose, namely for redevelopment and all uses necessary or convenient thereto. 1.2 Purchase Price. The purchase price ("Purchase Price") for the Property shall be Two Hundred Sixty Eight Thousand Dollars ($268,000), payable in cash. The purchase price is broken down as follows: Land Value - $268,000. Within five (15) business days after the date of execution hereof, Buyer shall deliver to Escrow Holder (as herein defined) cash in the amount of Ten Thousand Dollars ($10,000.00) (the "Deposit") in the form of a cashier's check, by a wire transfer, or other form acceptable to the Escrow Holder. The Deposit shall be placed in an interest -bearing account and all interest accrued thereon shall increase and become a part of the Deposit. On the close of escrow, the Deposit shall be applied toward the cash payment of the Purchase Price. Prior to the close of escrow, the Deposit shall be fully refundable to Buyer in the event this Agreement is terminated and Buyer is the non -defaulting party. The remaining balance of the cash payment of the Purchase Price shall be deposited by Buyer into Escrow in the: form of a cashier's check, wire transfer, or other form acceptable to the Escrow Holder, prior to the close of escrow. RAOldtown\OTACOTurchase and Sale Agreement -Great White North LP. DOC 1.3 No Relocation Assistance. Seller hereby acknowledges and agrees that the Property is owner occupied, and that the purchase and sale of the Property is being made in the course of voluntary negotiations between Seller and Buyer resulting from Seller's having offered the Property for sale. Seller shall have no further obligation to Buyer under the State Eminent Domain Law or under the Relocation Assistance and Real Property Acquisition statutes and guidelines, including but not limited to California Government Code Section 7260 et seq. and Section 6000 et seq. of Title 25 of the California Code of Regulations, and the Seller hereby waives any such assistance or benefits if applicable. Seller hereby further waives any and all claims it may have now or in the future for compensation for relocation assistance, relocation benefits, pre -condemnation damages, compensation for property or for loss of goodwill under California Code of Civil Procedure Section 1263.510 et seq. or any other applicable law. 2. TITLE. 2.1 General. Title to the Property shall be conveyed by Grant Deed and shall be evidenced by a CLTA Standard Coverage Form of Owner's Policy of Title Insurance (or an ALTA Extended Coverage Form Policy if Buyer elects such coverage as provided in Paragraph 2.3 hereof) ("Title Policy"), the cost of which shall be borne by Buyer, issued by First American Title Company, 3625 Fourteenth Street, Riverside, California 92501, (909) 787-1723; fax: (909) 784-7956, Title Ofncer Debbie Newton ("Title Company'), with liability in the full amount of the Purchase Price, insuring title to the Property as vested in Buyer, free and clear of all liens and encumbrances and other matters affecting title to the Property, except: 2.1.1 Non -delinquent real property taxes; and 2.1.2 Such conditions, covenants, restrictions, and utility easements of record as are approved by Buyer in its sole and absolute discretion. 2.2 Acts After Date of Agreement. During the period from the date of this Agreement through the close of escrow, Seller shall not record, or file for record or permit to be recorded or filed for record any document or instrument which will affect the title to or use of the Property without the prior written consent of the Buyer, which consent shall not be unreasonably withheld. 2.3 Ootion for ALTA Coverage. Buyer shall have the option of obtaining an ALTA Extended Coverage Form Policy of Title Insurance or a CLTA Standard Coverage Form Owners Policy of Title Insurance. In such event, Buyer shall, at its expense, procure the ALTA Extended Coverage Survey (the "Survey"); provided, that, Seller shall provide to Buyer, at no cost to Buyer and within five (5) days after execution of this Agreement, a copy of Seller's most recent survey, if any, prepared with respect to the Property. The cost of an ALTA Extended Coverage Form Policy of Title Insurance shall be borne by Buyer. R:\Oldtown\OTACQ\Purchase and Sale Agreement -Great White North LP. DOC 3. RIGHT OF ENTRY. 3.1 Seller hereby grants Buyer and its agents, employees, contractors and subcontractors (collectively "Representatives") the right of entry to the Property at reasonable times for the purpose of conducting soils and geological investigation and testing for toxic or hazardous substances and other contamination. Such investigation shall be at Buyer's expense. 3.2 Buyer shall deliver advance written notice to the Seller of its intention to enter the Property to conduct activities pursuant to this Paragraph 3 at least one (1) business day prior to any entry onto the Property. Such notice of entry shall include the proposed dates and times of such entry, and the nature, specific location and scope of any test, investigation, or other activity upon the Property. Seller and it representatives shall have the right to accompany and observe all of Buyer's and its Representatives' activities on the Property. 3.3 All work performed by Buyer and its Representatives will be performed diligently and in a manner consistent with the standards of care, diligence and skill exercised by recognized consulting firms for similar services, and in accordance with all regulatory and good management standards and the requirements of any governmental agency or entity and all applicable laws. 3.4 Buyer and its Representatives shall promptly notify the Seller of any discovery, spill, release, or discharge of any "Hazardous Materials", as defined in Paragraph 5, on, under or about the Property which is discovered, encountered, or results from or is related to the Buyer's or its Representatives' access to and/or use of the Property under this Agreement. 3.5 Buyer and its Representatives shall remove from the Property any wastes and Hazardous Materials used in or generated by the activities of Buyer or its Representatives on the Property no later than the date of completion of their environmental investigation activities and operations on the Property. 3.6 In connection with the use of the Property by Buyer and its Representatives, Buyer shall, at its own cost and expense, take any necessary action to keep the Property, and any improvements and personalty thereon, in good order and repair and safe condition to the extent that such Property, improvements or personalty were in such condition prior to its entry, and the whole of the Property, in a clean, sanitary and orderly condition, including, without limitation, ensuring that any holes, ditches or other indentations, as well as any mounds or other inclines created by any excavation by Buyer or its Representatives are regraded, resurfaced and compacted. If any portion of the Property or an adjacent property, including improvements and fixtures, suffers damage or alteration by reason of the access and activities of Buyer or its Representatives on the Property, Buyer shall, at its own cost and expense, promptly repair all such damage and restore the Property or adjacent property to as good a condition as before such damage or alteration occurred, or if it cannot be repaired, Buyer shall replace such damaged or altered property to the extent possible. 3.7 Buyer agrees, at its sole cost and expense, to defend, protect, indemnify, and hold free and harmless Seller and its employees, agents, and representatives, and their R:\Oldtown\OTACQ\Purchase anc Sale Agreement - Great White North LP.DOC successors, and assigns (individually as "Indemnitee" and collectively, "Indemnitees"), free and harmless from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever ("Claims"), including fees of accountants, attorneys, expert witnesses, or other professionals, and all costs associated therewith, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any act, failure to act, error, or omission of Buyer or any of its Representatives arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to entry upon the Property pursuant to this Paragraph 3, except for that portion or percentage of a Claim against an Indemnitee based on the comparative negligence, gross negligence or willful misconduct of such Indemnitee. 4. ESCROW. 4.1 Agreement to Constitute Escrow Instructions. This Agreement shall constitute escrow instructions and a copy hereof shall be deposited with the Escrow Holder for this purpose. 4.2 Escrow Holder. The escrow shall be opened with First American Title Company, 3625 Fourteenth Street, Riverside, CA 92501, (909) 787-1723, fax: (909) 784-7956, Attention: Debbie Newton (dnewton@firstam.com) ("Escrow Holder"), within five (5) business days after the execution of this Agreement by Buyer and Seller by depositing an executed copy or executed counterparts of this Agreement with Escrow Holder. This document shall be considered as the escrow instructions between the parties, with such further instructions as Escrow Holder requires in order to clarify the duties and responsibilities of Escrow Holder. If Escrow Holder shall require further escrow instructions, Escrow Holder shall promptly prepare such escrow instruction;) on its usual form for the purchase and sale of the Property upon the terms and provisions hereof. Provided such further escrow instructions are consistent with this Agreement, they shall be: promptly signed by Buyer and Seller within five (5) business days after delivery thereof to each party. The further escrow instructions shall incorporate each and every term of this Agreement and shall provide that in the event of any conflict between the terms and conditions of this Agreement and such further escrow instructions, the terms and conditions of this Agreement shall control. Escrow Holder shall not be held liable for the sufficiency or correctness as to form, execution or validity of any instruments deposited in this escrow (other than those documents prepared by Escrow Holder), or as to identity, authority or rights of any person executing the same, and Escrow Holder's duties hereunder shall be limited to the safekeeping of such money, instruments or other documents received by Escrow Holder and for the disposition or return of same in accordance with the instructions herein. The parties hereto agree jointly and severally to pay on demand, as well as to indemnify and hold Escrow Holder harmless from and against, all costs, damages, judgments, reasonable attorneys' fees, expenses and liabilities of any kind or nature which Escrow Holder may incur or sustain in good faith in connection with or arising out of this escrow which are not due to Escrow Holder's negligence or willful misconduct. 4.3 Opening of Escrow. Escrow shall be deemed open on the date of delivery to the Escrow Holder of a fully executed copy or executed counterparts of this Agreement. R:\Oldtown\OTACQ\Purchase and Sale Agreement - Great White North LP.DOC 4.4 Close of Escrow. Provided all of Seller's and Buyer's obligations to be performed on or before close of escrow have been performed and all the conditions to the close of escrow set forth in this Agreement have been satisfied, escrow shall close on or before April 30, 2004 ("Closing Date"). All risk of loss or damage with respect to the Property shall pass from Seller to Buyer at -the close of escrow. Possession of the Property shall be delivered to Buyer upon the close of escrow. Notwithstanding anything in this Agreement to the contrary, escrow shall be deemed automatically terminated if it has not otherwise closed by May 31, 2004, regardless of cause or fault. 4.5 Buyer Reguired to Deliver. On or before the close of escrow Buyer shall deposit into escrow the following (properly executed and acknowledged, if applicable): 4.5.1 The Purchase Price; and 4.5.2 All other documents contemplated by this Agreement and required by Escrow Holder to be deposited by Buyer to carry out this escrow. 4.6 Seller Required to Deliver. Before the close of escrow, Seller shall deposit into escrow the following (properly executed and acknowledged, if applicable): 4.6.1 A Grant Deed conveying the Property to Buyer; 4.6.2 A non -foreign affidavit with respect to Seller; and 4.6.3 Any other documents contemplated by this Agreement or required by Escrow Holder or the Title Company to be deposited by Seller to carry out this escrow. 4.7 Conditions to the Close of Escrow. Escrow shall not close unless and until both parties have deposited with Escrow Holder all sums and documents required to be deposited as provided in this Agreement. The failure of a party to timely deposit any such sums and/or documents shall constitute a default by such party. Furthermore, escrow shall not close unless Seller shall be able to deliver possession of the Property to Buyer free of all tenants, leases and/or agreements. Seller agrees to indemnify, protect, hold harmless and defend Buyer and its employees, agents, representatives, council members, attorneys, successors and assigns from and against any and all claims raised after closing by tenants raising or seeking any rights to relocation assistance or benefits based on their tenancy on the Property prior to the sale hereunder. In addition to the closing conditions set forth above, Buyer's obligation to proceed with the transaction contemplated by this Agreement is subject to the satisfaction, not later than the date that is fifteen (15) days after the date hereof ("Contingency Date"), of all of the following conditions precedent, which are for Buyer's benefit and may be waived only by Buyer: 4.7.1 Seller shall have performed all agreements to be performed by Seller hereunder; 4.7.2 Seller's representations, warranties and covenants set forth in this Agreement shall be true and correct as of the Contingency Date, and continue to be true and correct as of the Closing Date; R:\Oldtown\OTACQ\Purchase and Sale Agreement - Great White North LP.DOC 4.7.3 Buyer's approval, in its sole and absolute discretion, of the results of such soils, geological, toxic waste, hazardous substance, and/or any other kind of soil or water contamination tests and analyses as Buyer or its agents, employees or representatives may, prior to the Closing Date, perform with respect to the Property; 4.7.4 As of the Closing Date, there shall have been no material adverse changes in the physical condition of the Property, as described in Paragraph 6 or otherwise; 4.7.5 Verification by Buyer that Seller is the owner of record of the Property and that there are no other owners of record of the Property as of the Closing Date; 4.7.6 Title Company shall have issued or shall have committed to issue the Title Policy to Buyer. for the amount of the Purchase Price showing fee title to the Property to be vested in Buyer, subject only to such conditions, covenants, restrictions, and utility easements of record as are approved by Buyer in its sole and absolute discretion; and 4.7.7 Approval of this Agreement by the City Council of the City of Temecula. Neither Buyer nor Seller shall act or fail to act for the purpose of permitting or causing any closing condition to fail. Waiver of any condition to close of escrow shall not relieve any party for liability resulting from breach of any representation, warranty, covenant or agreement under this Agreement. In the event that the conditions to close of escrow are not timely satisfied for a reason other than a default of Buyer or Seller under this Agreement: (i) This Agreement, the escrow and the rights and obligations of Buyer and Seller hereunder shall terminate, except as otherwise provided herein; provided, however, no such termination shall occur until (A) Buyer has had the opportunity to waive any condition for Buyer's benefit within two (2) business days after the later of Buyer's receipt of written notice from Seller or Buyer's discovery that such condition will not be satisfied, and (B) Buyer does not elect to waive such condition; and (ii) Escrow Holder, upon such termination, is hereby instructed to promptly return to Buyer all funds (and all interest accrued thereon) and documents deposited by Buyer in escrow and to return to Seller all funds and documents deposited by Seller in escrow and which are held by Escrow Holder on the date of the termination (less, in the case of the party otherwise entitled to such funds, however, the amount of any cancellation charges required to be paid by such party under Paragraph 4.12 below). 4.8 Recordation of Grant Deed: Delivery of Funds. Upon receipt of the funds and instruments described in this Paragraph 4, Escrow Holder shall cause the Grant Deed to be recorded in the office of the County Recorder of Riverside County, California. Thereafter, Escrow Holder shall deliver the proceeds of this escrow (less appropriate charges) to Seller. 4.9 Prorations. All real and personal property taxes, liens and assessments shall be prorated between Buyer and Seller as of the close of escrow based on the latest available tax information or, at Seller's election, such taxes, liens and assessments may be paid R:\Oldtown\OTACQ\Purchase and Sale Agreement -Great White North LP.DOC in full through escrow to the lienholder from the Deposit, so long as the Deposit is sufficient to satisfy all outstanding liens. If such liens are paid through escrow, Escrow Holder shall cause the liens to be discharged and the discharge recorded prior to conveyance of fee title of the Property to Buyer. Any supplemental or escape real estate taxes and assessments on the Property attributable to the period prior to the close of escrow shall be paid by Seller outside of the escrow. All prorations shall be determined on the basis of a 360-day year. 4.10 Costs of Escrow. 4.10.1 Seller shall pay: (a) The cost of any obligations of Seller hereunder. 4.10.2 Buyer shall pay: (a) All escrow fees and costs associated with the purchase of the subject real property; (b) The cost of recording the Grant Deed, if any; (c) The cost of documentary transfer taxes in connection with the recordation of the Grant Deed, if any; (d) The cost of any obligations of Buyer hereunder; and (e) Any other closing costs or charges not expressly provided for herein and customarily paid by a Buyer of real property in Riverside County, California. 4.11 Broker's Commission. Buyer and Seller represent to one another that no broker or finder has been engaged in connection with the transaction contemplated by this Agreement, or to its knowledge is in any way connected with such transaction. Seller covenants and agrees that any broker fee or commission, which may be due or payable in connection with the closing of the transaction contemplated by this Agreement, shall be borne solely by Seller. Seller agrees to indemnify, defend, protect and hold harmless Buyer and its respective employees, agents, representatives, council members, attorneys, successors and assigns, from and against all claims of any agent, broker, finder or other similar party arising from or in connection with the sale of the Property to Buyer. 4.12 Escrow Cancellation Charges. In the event that this escrow shall fail to close by reason of the default of either party hereunder, the defaulting party shall be liable for all escrow and title cancellation charges. In the event that the escrow shall fail to close for any other reason, each party shall pay one-half (1/2) of all escrow and title cancellation charges. 5. REPRESENTATIONS AND WARRANTIES BY SELLER. In consideration of Buyer's entering into this Agreement and as an inducement to Buyer to purchase the Property, Seller makes the following representations and warranties, R:\Oldtown\OTACQ\Purchase and Sale Agreement - Great White North LP.DOC each of which is material and is being relied upon by Buyer (the continued truth and accuracy of which shall constitute a condition precedent to Buyer's obligations to close hereunder and each of which shall survive the! close of escrow): 5.1 This Agreement has been duly and validly authorized, executed and delivered by Seller and no other action is requisite to the valid and binding execution, delivery and performance of this Agreement by Seller; 5.2 There are no suits pending against or affecting or, to the best of Seller's knowledge, without having made investigation thereof, threatened against the Property or its use, whether in law or at equity; 5.3 Other than as disclosed in this Agreement, no joinder, consent, or waiver of or by any third party is necessary to permit the consummation by Seller of the transaction contemplated pursuant to this Agreement; 5.4 To Seller's best knowledge, there are no materials, reports and information in Seller's possession relating to the Environmental Condition (any condition that exists prior to or after the Closing Date, with respect to the air, land, soil, surface, subsurface strata, surface water, ground water, storm water or sediments) of the Property, and there are no outstanding environmental remediation orders or decrees (federal or state) regarding the Property. Seller shall deliver to Buyer any materials and reports relating to the Environmental Condition of the Property which comes into Seller's possession, and any information relating to the Environmental Condition of the Property of which Seller becomes aware; 5.5 To the best of Seller's knowledge, Seller is not aware of the existence of any violation of law or violation of governmental regulation with respect to the Property, including any Environmental Laws, as hereinafter/ defined; 5.6 There are no pending, or to the best of Seller's knowledge, without having made investigation thereof, threatened proceedings in eminent domain, which would affect the Property, or any portion thereof; 5.7 To the best of Seller's knowledge there has been no production, disposal or storage on the Property of any Hazardous Materials (as hereinafter defined) by Seller or any of the contractors, agents, employees or representatives of Seller or, to the best of Seller's knowledge, any previous owner or current or previous tenant of the Property; and to the best of Seller's knowledge, there has not been any other activity on the Property which could have resulted in the deposit or release on the Property of Hazardous Materials, or the violation of any Environmental Laws, or which could result in any proceeding or inquiry by any authority with respect thereto; 5.8 Seller is not a "foreign person" within the meaning of Internal Revenue Code 1445; and 5.9 As of the Closing Date, there shall be no leases and/or other agreements in existence affecting the: Property. R:\Oldtown\OTACQ\Purchase and Sale Agreement - Great White North LP.DOC The term "Hazardous Materials" shall mean and include the following, including mixtures thereof: any hazardous substance, pollutant, contaminant, waste, by-product or constituent regulated under the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et sec; oil and petroleum products and natural gas, natural gas liquids, liquefied natural gas and synthetic gas usable for fuel; pesticides regulated under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. Section 136 et sec; asbestos and asbestos -containing materials, PCBs and other substances regulated under the Toxic Substances Control Act, 15 U.S.C. Section 2601 et sec; source material, special nuclear material, by-product material and any other radioactive materials or radioactive wastes, however produced, regulated under the Atomic Energy Act or the Nuclear Waste Policy Act of 1982; chemicals subject to the OSHA Hazard Communication Standard, 29 C.F.R. Section 1910.1200 et sec; industrial process and pollution control wastes, whether or not hazardous within the meaning of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; any substance defined as a "hazardous substance" in California Civil Code Section 2929.5(e)(2) or California Code of Civil Procedure Section 736(f)(3); and any other substance or material regulated by any Environmental Laws. The term "Environmental Laws" shall mean and include all federal, state and local statutes, ordinances, regulations and rules in effect on or prior to the date hereof relating to environmental quality, health, safety, contamination and clean-up, including, without limitation, the Clean Air Act, 42 U.S.C. Section 7401 et sec; the Clean Water Act, 33 U.S.C. Section 1251 et sec; and the Water Quality Act of 1987, the Federal Insecticide, Fungicide, and Rodenticide Act 7 U.S.C. Section 136 et sec; the Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. Section 1401 et sec; the National Environmental Policy Act, 42 U.S.C. Section 4321 et sec; the Noise Control Act, 42 U.S.C. Section 4901 et sec; the Occupational Safety and Health Act, 29 U.S.C. Section 651 et sec; the Resource Conservation and Recovery Act 42 U.S.C. Section 6901 et sec; as amended by the Hazardous and Solid Waste Amendments of 1984; the Safe Drinking Water Act, 42 U.S.C. Section 300f et sec; the Comprehensive Environmental Response, Compensation and Liability Act 42 U.S.C. Section 9601 et sec; as amended by the Superfund Amendments and Reauthorization Act, the Emergency Planning and Community Right -to -Know Act and the Radon Gas and Indoor Air Quality Research Act; the Toxic Substances Control Act 15 U.S.C. Section 2601 et sec; the Atomic Energy Act, 42 U.S.C. Section 2011 et sec; and the Nuclear Waste Policy Act of 1982, 42 U.S.C. Section 10101 et sec; and state and local environmental statutes and ordinances, with implementing regulations and rules in effect on or prior to the date hereof. 6. EMINENT DOMAIN OR TAKING: PHYSICAL DAMAGE OR DESTRUCTION. 6.1 If, prior to the close of escrow, any material portion of the Property is taken or if the access thereto or available parking area therefor is reduced or restricted by eminent domain or otherwise (or becomes the subject of a pending, threatened or contemplated taking which has not been consummated, other than any such taking prosecuted by or on behalf of the Buyer), Seller shall immediately notify Buyer of such fact. In such event, Buyer shall have the option, in its sole and absolute discretion, to terminate this Agreement upon written notice to Seller given not later than ten (10) business days after receipt of Seller's notice. If Buyer does not exercise this option to terminate this Agreement, neither party shall have the right to terminate this Agreement, but the Seller shall assign and turn over to Buyer, and the Buyer shall R:\Oldtown\OTACQ\Purchase and Sale Agreement -Great White North LP. DOC be entitled to receive and keep, all awards for the taking by eminent domain which accrue to Seller, and the parties shall proceed to the close of escrow pursuant to the terms hereof, without modification of the terms of this Agreement and without any reduction in the Purchase Price (except as otherwise provided pursuant to Paragraph 1.2 hereof). Unless and until this Agreement is terminated, Seller shall take no action with respect to any eminent domain proceeding without the prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed. 6.2 If, prior to the close of escrow, any material portion of the Property is physically damaged or destroyed due to any cause, natural or otherwise, including, without limitation, (i) fire or flooding, (ii) any destructive seismic or geological conditions such as any earthquake or tremor, subsidence, or unstable subsurface conditions; or (iii) a condition arising from any discharge of Hazardous Materials or other violation of any Environmental Laws, Seller shall immediately notify Buyer of such fact. In such event, Buyer shall have the option, in its sole and absolute discretion, to terminate this Agreement upon written notice to Seller given not later than ten (10) business days after receipt of Seller's notice. If Buyer does not exercise this option to terminate this Agreement, neither party shall have the right to terminate this Agreement, but the Seller shall assign and turn over, and the Buyer shall be entitled to receive and keep, all insurance proceeds paid by Seller's insurer in connection with such damage or destruction, and the parl:ies shall proceed to the close of escrow pursuant to the terms hereof, without modification of the terms of this Agreement and without any reduction in the Purchase Price (except as otherwise provided pursuant to Paragraph 1.2 hereof). Unless and until this Agreement is terminated, Seller shall take no action with respect to any such damage and destruction without the prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed. 7. INCORPORATION OF EXHIBITS. All exhibits attached hereto and referred to herein are incorporated in this Agreement as though fully set forth herein. 8. ATTORNEYS' FEES. In any action between Buyer and Seller seeking enforcement of any of the terms and provisions of this Agreement, or in connection with the Property, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, not limited to taxable costs, reasonable attorneys' fees and reasonable fees of expert witnesses. 9. NOTICES;. All notices, requests, demands and other communication given or required to be given hereunder shall be in writing and personally delivered, sent by first class United States registered or certified mail, postage prepaid, return receipt requested, or sent by a nationally recognized courier service such as Federal Express, duly addressed to the parties as follows: To Buyer: City of Temecula 43200 Business Park Drive Post Office Box 9033 Temecula, California 92589 Attention: John Meyer Tel: (909) 694-6412 R:\Oldtown\OTACQ\Purchase and Sale Agreement -Great White North LP.DOC Fax: (909) 693-3903 With a Copy To: Richards, Watson and Gershon 355 South Grand Avenue, 40`n Floor Los Angeles, California 90071- 3101 Attention: Peter Thorson Tel: (213) 626-8484 Fax: (213) 626-0078 To Seller: Great white North, LP C/o Stephen E. McKenzie 41511 State Highway 74 Hemet, CA 92594 To Escrow Holder: First American Title Company 3625 Fourteenth Street Riverside, CA 92501 Tel: (909) 787-1723 Fax: (909) 784-7956 Attention: Debbie Newton, Title Officer Delivery of any notice or other communication hereunder shall be deemed made on the date of actual delivery thereof to the address of the addressee, if personally delivered, and on the date indicated in the return receipt or courier's records as the date of delivery or as the date of first attempted delivery, if sent by mail or courier service. Any party may change its address for purposes of this Paragraph 10 by giving notice to the other party and to Escrow Holder as herein provided. 10. ASSIGNMENT. Neither this Agreement nor any interest herein may be assigned by either party without the prior written consent of the other party. 11. BINDING EFFECT. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their successors and assigns. 12. ENTIRE AGREEMENT. This Agreement contains all of the agreements of the parties hereto with respect to the matters contained herein, and all prior or contemporaneous agreements or understandings, oral or written; pertaining to any such matters are merged herein and shall not be effective for any purpose. No provision of this Agreement may be amended, supplemented or in any way modified except by an agreement in writing signed by the parties hereto or their respective successors in interest and expressly stating that it is an amendment of this Agreement. RAOldtown\OTACMPurchase and Sale Agreement - Great White North LP. DOC 13. ENFORCEMENT OF AGREEMENT BY SELLER. If the sale of the Property is not consummated as a result of the Buyer's material default hereunder, then Seller may enforce its rights hereunder by an action against Buyer for damages, resulting from the material breach of this Agreement by Buyer. 14. ENFORCEMENT OF AGREEMENT BY BUYER. It is agreed that the rights granted to Buyer by Seller hereunder are of a special and unique kind and character, and that, if there is a breach by Seller of any material provision of this Agreement, Buyer would not have any adequate remedy at law. It is expressly agreed, therefore, that Buyer's rights hereunder may be enforced by an action for specific performance and such other equitable or legal relief as is provided under the laws of the State of California. 15. HEADINGS. The headings of this Agreement are for purposes of reference only and shall not limit or define the meaning of the provisions of this Agreement. 16. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. 17. SURVIVAL. Any provision hereof which is executory as of the Closing Date and all representations and warranties shall survive such close of escrow and delivery of the Grant Deed and shall continue to be a binding provision on the parties hereto according to its terms. 18. TIME OF THE ESSENCE. Time is of the essence of this Agreement. 19. THIRD PARTIES. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person, other than the parties hereto and their successors and assigns, any rights or remedies under or by reason of this Agreement. 20. SEVERA131LITY. If any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein, unless such invalidity, illegality or unenforceability materially affects the economic terms of the transactions contemplated by this Agreement or the ability of either party to perform its obligations under this Agreement. In such case, either party may terminate this Agreement and the escrow upon written notice to the other party given no later than ten (10) business days after the party giving such notice becomes aware of such invalidity, illegality or unenforceability. In the event of such termination, all funds deposited with Escrow Holder by Buyer and any interest accrued thereon shall be returned to Buyer. 21. ADDITIONAL DOCUMENTS. Each party hereto agrees to perform any further acts and to execute, acknowledge and deliver any further documents that may be reasonably necessary to carry out the provisions of this Agreement. RAOldtown\OTACQ\Purchase and Sale Agreement -Great White North LP. DOC 22. IRREVOCABLE OFFER BY SELLER. Seller's execution and delivery to Buyer of this Agreement shall constitute an offer to sell the Property pursuant to the terms stated herein, which offer shall be irrevocable by Seller, provided that Buyer accepts such offer by executing and returning to Seller a counterpart of this Agreement on or before March 12, 2004. Seller understands and agrees that Buyer is a governmental entity which must schedule and hold one or more meetings of its governing body in order to authorize Buyer's acceptance of this offer and that Buyer is relying on the irrevocability of this offer in processing it for consideration by the City Council of the City of Temecula and its governing body. Seller further acknowledges and agrees that this Agreement is tendered under the provisions of California Evidence Code Section 1152, and in the event this Agreement is not fully executed by the parties hereto, or is terminated for any reason whatsoever, this Agreement shall not be admissible to prove Buyer's liability in inverse condemnation, for precondemnation damages or otherwise, and may not be used as an admission of value in any eminent domain or other proceeding. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. "SELLER" Great White North, LP C/o Stephen E. McKenzie 41511 State Highway 74 Hemet, CA 92594 Stephen E. McKenzie APPROVED AS TO FORM: Richards, Watson & Gershon By: Peter Thorson, City Attorney "BUYER" THE CITY OF TEMECULA, a municipal corporation Michael S. Naggar, Mayor Attest: Susan Jones, City Clerk R:\Oldtown\OTACQ\Purchase and Sale Agreement - Great White North LP.DOC EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY Lots 1 through 6, Inclusive, together with that portion of the alley in said Block 6 abutting said Lots 1 through 6, inclusive, in said Block 6 of the Town of Temecula, in the County of RIVERSIDE, State of California, as per map recorded in Book 15, page(s) 726, of Maps, in the office of the County Recorder of San Diego County, together with that portion of the alley and that portion of Second Street in said Block 6 which would pass by operation of law with the conveyance of said lots. Said alley was vacated by Resolution of the Board of Supervisors of the County of Riverside, a certified coy of said resolution was recorded April 23, 1979, as Instrument No. 80863, Official Records. Except any portion of the above as reserved in the Deed to the State of California for freeway purposes by deed recorded June 23, 1948, as Instrument No. 3269, in Book 987, page 511 of Official Records. Also except that portion described in the deed to the State of California, recorded December 4, 1967, as Instrument No. 105961, Official Records; Also except any portion of the above as described in the deed to the State of California, recorded July 12, 1973, as Instrument No. 90987, Official Records. Said portion of Second Street was vacated by Resolution of said Board of Supervisors, a certified coy of said Resolution being recorded July 16, 1984 as Instrument No. 153463, Official Records. 12012-0001\749075v1.doc A-1 12/02/03 AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS First American Title Company 3625 Fourteenth Street Riverside, CA 92501 Attention: Debbie Newton, Title Officer Re: Escrow No.: THIS AGREEMENT FOR PURCHASE (this "Agreement") dated as of March 16, 2004, Trustee, Dixon Family Trust dated February 22, TEMECULA, a public body, corporate and p conditions: SALE AND PURCHASE PRICE. AND SALE AND ESCROW INSTRUCTIONS is entered into by and between IRA B. DIXON, 1980, (collectively "Seller"), and the CITY OF olitic ("Buyer"), upon the following terms and 1.1 Sale and Purchase. Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller good and marketable fee simple title to that certain real property of approximately 27,000 square feet identified as Assessor's Parcel Number 922-032-021, 922- 032-022,922-032-028, located in the City of Temecula, County of Riverside, State of California, and more particularly described on Exhibit "A" attached hereto, together with all easements, privileges, permits, licenses, entitlements, and other rights appurtenant thereto ("Real Property"), and all buildings, fixtures, equipment, structures, parking areas, landscaping, appurtenances and other improvements constructed or situated on the Real Property and owned by Seller ("Improvements") (the Real Property and Improvements hereinafter collectively "Property'), for the price and upon all of the terms and conditions set forth herein. Buyer is purchasing the Property for a public purpose, namely for redevelopment and all uses necessary or convenient thereto. 1.2 Purchase Price. The purchase price ("Purchase Price") for the Property shall be Four Hundred Thirty Five Thousand Dollars ($435,000), payable in cash. The purchase price is broken down as follows: Land Value - $435,000. Within five (15) business days after the date of execution hereof, Buyer shall deliver to Escrow Holder (as herein defined) cash in the amount of Ten Thousand Dollars ($10,000.00) (the "Deposit") in the form of a cashier's check, by a wire transfer, or other form acceptable to the Escrow Holder. The Deposit shall be placed in an interest -bearing account and all interest accrued thereon shall increase and become a part of the Deposit. On the close of escrow, the Deposit shall be applied toward the cash payment of the Purchase Price. Prior to the close of escrow, the Deposit shall be fully refundable to Buyer in 'the event this Agreement is terminated and Buyer is the non -defaulting party. The remaining balance of the cash payment of the Purchase Price shall be deposited by Buyer into Escrow in the form of a cashier's check, wire transfer, or other form acceptable to the Escrow Holder, prior to the close of escrow. R:\Oldtown\OTACQ\Purchase and Sale Agreement - Dixon.DOC 1.3 No Relocation Assistance. Seller hereby acknowledges and agrees that the Property is owner occupied, and that the purchase and sale of the Property is being made in the course of voluntary negotiations between Seller and Buyer resulting from Seller's having offered the Property for sale. Seller shall have no further obligation to Buyer under the State Eminent Domain Law or under the Relocation Assistance and Real Property Acquisition statutes and guidelines, including but not limited to California Government Code Section 7260 et seq. and Section 6000 et seq. of Title 25 of the California Code of Regulations, and the Seller hereby waives any such assistance or benefits if applicable. Seller hereby further waives any and all claims it may have now or in the future for compensation for relocation assistance, relocation benefits, pre -condemnation damages, compensation for property or for loss of goodwill under California Code of Civil Procedure Section 1263.510 et seq. or any other applicable law. 2. TITLE. 2.1 General. Title to the Property shall be conveyed by Grant Deed and shall be evidenced by a CLTA Standard Coverage Form of Owner's Policy of Title Insurance (or an ALTA Extended Coverage Form Policy if Buyer elects such coverage as provided in Paragraph 2.3 hereof) ("Title Policy"), the cost of which shall be borne by Buyer, issued by First American Title Company, 3625 Fourteenth Street, Riverside, California 92501, (909) 787-1723; fax: (909) 784-7956, Title Officer Debbie Newton ("Title Company"), with liability in the full amount of the Purchase Price, insuring title to the Property as vested in Buyer, free and clear of all liens and encumbrances and other matters affecting title to the Property, except: 2.1.1 Non -delinquent real property taxes; and 2.1.2 Such conditions, covenants, restrictions, and utility easements of record as are approved by Buyer in its sole and absolute discretion. Notwithstanding anything in the foregoing to the contrary, Buyer acknowledges approval of the following exceptions listed in Schedule "B" of the Old Republic Title Company Preliminary Report dated as of November 10, 2003, Order No. 2607019692-55 (the "Preliminary Report"): 1, 2, 3, and 4. 2.2 Acts After Date of Agreement. During the period from the date of this Agreement through the close of escrow, Seller shall not record, or file for record or permit to be recorded or filed for record any document or instrument which will affect the title to or use of the Property without the prior written consent of the Buyer, which consent shall not be unreasonably withheld. 2.3 Option for ALTA Coverage. Buyer shall have the option of obtaining an ALTA Extended Coverage Form Policy of Title Insurance or a CLTA Standard Coverage Form Owners Policy of Title Insurance. In such event, Buyer shall, at its expense, procure the ALTA Extended Coverage Survey (the "Survey"); provided, that, Seller shall provide to Buyer, at no cost to Buyer and within five (5) days after execution of this Agreement, a copy of Seller's most recent survey, if any, prepared with respect to the Property. The cost of an ALTA Extended Coverage Form Policy of Title Insurance shall be borne by Buyer. R:\Oldtown\OTACQ\Purchase and Sale Agreement- Dixon.DOC 3. RIGHT OF ENTRY. 3.1 Seller hereby grants Buyer and its agents, employees, contractors and subcontractors (collectively "Representatives") the right of entry to the Property at reasonable times for the purpose of conducting soils and geological investigation and testing for toxic or hazardous substances and other contamination. Such investigation shall be at Buyer's expense. 3.2 Buyer shall deliver advance written notice to the Seller of its intention to enter the Property to conduct activities pursuant to this Paragraph 3 at least one (1) business day prior to any entry onto the Property. Such notice of entry shall include the proposed dates and times of such entry, and the nature, specific location and scope of any test, investigation, or other activity upon the Property. Seller and it representatives shall have the right to accompany and observe all of Buyer's and its Representatives' activities on the Property. 3.3 All work performed by Buyer and its Representatives will be performed diligently and in a manner consistent with the standards of care, diligence and skill exercised by recognized consulting firms for similar services, and in accordance with all regulatory and good management standards and the requirements of any governmental agency or entity and all applicable laws. 3.4 Buyer and its Representatives shall promptly notify the Seller of any discovery, spill, release, or discharge of any "Hazardous Materials", as defined in Paragraph 5, on, under or about the Property which is discovered, encountered, or results from or is related to the Buyer's or its Representatives' access to and/or use of the Property under this Agreement. 3.5 Buyer and its Representatives shall remove from the Property any wastes and Hazardous Materials used in or generated by the activities of Buyer or its Representatives on the Property no later than the date of completion of their environmental investigation activities and operations on the Property. 3.6 In connection with the use of the Property by Buyer and its Representatives, Buyer shall, at its own cost and expense, take any necessary action to keep the Property, and any improvements and personalty thereon, in good order and repair and safe condition to the extent that such Property, improvements or personalty were in such condition prior to its entry, and the whole of the Property, in a clean, sanitary and orderly condition, including, without limitation, ensuring that any holes, ditches or other indentations, as well as any mounds or other inclines created by any excavation by Buyer or its Representatives are regraded, resurfaced and compacted. If any portion of the Property or an adjacent property, including improvements and fixtures, suffers damage or alteration by reason of the access and activities of Buyer or its Representatives on the Property, Buyer shall, at its own cost and expense, promptly repair all such damage and restore the Property or adjacent property to as good a condition as before such damage or alteration occurred, or if it cannot be repaired, Buyer shall replace such damaged or altered property to the extent possible. 3.7 Buyer agrees, at its sole cost and expense, to defend, protect, indemnify, and hold free and harmless Seller and its employees, agents, and representatives, and their R:\Oldtown\OTACQ\Purchase ar d Sale Agreement - Dixon.DOC successors, and assigns (individually as "Indemnitee" and collectively, "Indemnitees"), free and harmless from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever ("Claims'), including fees of accountants, attorneys, expert witnesses, or other professionals, and all costs associated therewith, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any act, failure to act, error, or omission of Buyer or any of its Representatives arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to entry upon the Property pursuant to this Paragraph 3, except for that portion or percentage of a Claim against an Indemnitee based on the comparative negligence, gross negligence or willful misconduct of such Indemnitee. 4. ESCROW. 4.1 Agreement to Constitute Escrow Instructions. This Agreement shall constitute escrow instructions and a copy hereof shall be deposited with the Escrow Holder for this purpose. 4.2 Escrow Holder. The escrow shall be opened with First American Title Company, 3625 Fourteenth Street, Riverside, CA 92501, (909) 787-1723, fax: (909) 784-7956, Attention: Debbie Newton (dnewton@firstam.com) ("Escrow Holder'), within five (5) business days after the execution of this Agreement by Buyer and Seller by depositing an executed copy or executed counterparts of this Agreement with Escrow Holder. This document shall be considered as the escrow instructions between the parties, with such further instructions as Escrow Holder requires in order to clarify the duties and responsibilities of Escrow Holder. If Escrow Holder shall require further escrow instructions, Escrow Holder shall promptly prepare such escrow instructions on its usual form for the purchase and sale of the Property upon the terms and provisions hereof. Provided such further escrow instructions are consistent with this Agreement, they shall be promptly signed by Buyer and Seller within five (5) business days after delivery thereof to each party. The further escrow instructions shall incorporate each and every term of this Agreement and shall provide that in the event of any conflict between the terms and conditions of this Agreement and such further escrow instructions, the terms and conditions of this Agreement shall control. Escrow Holder shall not be held liable for the sufficiency or correctness as to form, execution or validity of any instruments deposited in this escrow (other than those documents prepared by Escrow Holder), or as to identity, authority or rights of any person executing the same, and Escrow Holder's duties hereunder shall be limited to the safekeeping of such money, instruments or other documents received by Escrow Holder and for the disposition or return of same in accordance with the instructions herein. The parties hereto agree jointly and severally to pay on demand, as well as to indemnify and hold Escrow Holder harmless from and against, all costs, damages, judgments, reasonable attorneys' fees, expenses and liabilities of any kind or nature which Escrow Holder may incur or sustain in good faith in connection with or arising out of this escrow which are not due to Escrow Holder's negligence or willful misconduct. 4.3 Opening of Escrow. Escrow shall be deemed open on the date of delivery to the Escrow Holder of a fully executed copy or executed counterparts of this Agreement. RA0ldtown\0TACQ\Purchase and Sale Agreement - Dixon.DOC 4.4 Close of Escrow. Provided all of Seller's and Buyer's obligations to be performed on or before close of escrow have been performed and all the conditions to the close of escrow set forth in this Agreement have been satisfied, escrow shall close on or before January 22, 2004 ("Closing Date"). All risk of loss or damage with respect to the Property shall pass from Seller to Buyer at the close of escrow. Possession of the Property shall be delivered to Buyer upon the close of escrow. Notwithstanding anything in this Agreement to the contrary, escrow shall be deemed automatically terminated if it has not otherwise closed by January 31, 2004, regardless of cause or fault. 4.5 Buver Required to Deliver. On or before the close of escrow Buyer shall deposit into escrow the following (properly executed and acknowledged, if applicable): 4.5.1 The Purchase Price; and 4.5.2 All other documents contemplated by this Agreement and required by Escrow Holder to be deposited by Buyer to carry out this escrow. 4.6 Seller Reouired to Deliver. Before the close of escrow, Seller shall deposit into escrow the following (properly executed and acknowledged, if applicable): 4.6.1 A Grant Deed conveying the Property to Buyer; 4.6.2 A non -foreign affidavit with respect to Seller; and 4.6.3 Any other documents contemplated by this Agreement or required by Escrow Holder or the Title Company to be deposited by Seller to carry out this escrow. 4.7 Conditions to the Close of Escrow. Escrow shall not close unless and until both parties have deposited with Escrow Holder all sums and documents required to be deposited as provided in this Agreement. The failure of a party to timely deposit any such sums and/or documents shall constitute a default by such party. Furthermore, escrow shall not close unless Seller shall be able to deliver possession of the Property to Buyer free of all tenants, leases and/or agreements. Seller agrees to indemnify, protect, hold harmless and defend Buyer and its employees, agents, representatives, council members, attorneys, successors and assigns from and against any and all claims raised after closing by tenants raising or seeking any rights to relocation assistance or benefits based on their tenancy on the Property prior to the sale hereunder. In addition to the closing conditions set forth above, Buyer's obligation to proceed with the transaction contemplated by this Agreement is subject to the satisfaction, not later than the date that is fifteen (15) days after the date hereof ("Contingency Date"), of all of the following conditions precedent, which are for Buyer's benefit and may be waived only by Buyer: 4.7.1 Seller shall have performed all agreements to be performed by Seller hereunder; 4.7.2 Seller's representations, warranties and covenants set forth in this Agreement shall be true; and correct as of the Contingency Date, and continue to be true and correct as of the Closincl Date; R:\Oldtown\OTACQ\Purchase and Sale Agreement- Dixon.DOC 4.7.3 Buyer's approval, in its sole and absolute discretion, of the results of such soils, geological, toxic waste, hazardous substance, and/or any other kind of soil or water contamination tests and analyses as Buyer or its agents, employees or representatives may, prior to the Closing Date, perform with respect to the Property; 4.7.4 As of the Closing Date, there shall have been no material adverse changes in the physical condition of the Property, as described in Paragraph 6 or otherwise; 4.7.5 Verification by Buyer that Seller is the owner of record of the Property and that there are no other owners of record of the Property as of the Closing Date; 4.7.6 Title Company shall have issued or shall have committed to issue the Title Policy to Buyer, for the amount of the Purchase Price showing fee title to the Property to be vested in Buyer; subject only to such conditions, covenants, restrictions, and utility easements of record as are approved by Buyer in its sole and absolute discretion; and 4.7.7 Approval of this Agreement by the City Council of the City of Temecula Neither Buyer nor Seller shall act or fail to act for the purpose of permitting or causing any closing condition to fail. Waiver of any condition to close of escrow shall not relieve any party for liability resulting from breach of any representation, warranty, covenant or agreement under this Agreement. In the event that the conditions to close of escrow are not timely satisfied for a reason other than a default of Buyer or Seller under this Agreement: (i) This Agreement, the escrow and the rights and obligations of Buyer and Seller hereunder shall terminate, except as otherwise provided herein; provided, however, no such termination shall occur until (A) Buyer has had the opportunity to waive any condition for Buyer's benefit within hvo (2) business days after the later of Buyer's receipt of written notice from Seller or Buyer's discovery that such condition will not be satisfied, and (B) Buyer does not elect to waive such condition; and (ii) Escrow Holder, upon such termination, is hereby instructed to promptly return to Buyer all funds (and all interest accrued thereon) and documents deposited by Buyer in escrow and to return to Seller all funds and documents deposited by Seller in escrow and which are held by Escrow Holder on the date of the termination (less, in the case of the party otherwise entitled to such funds, however, the amount of any cancellation charges required to be paid by such party under Paragraph 4.12 below). 4.8 Recordation of Grant Deed; Delivery of Funds. Upon receipt of the funds and instruments described in this Paragraph 4, Escrow Holder shall cause the Grant Deed to be recorded in the office of the County Recorder of Riverside County, California. Thereafter, Escrow Holder shall deliver the proceeds of this escrow (less appropriate charges) to Seller. 4.9 Prorations. All real and personal property taxes, liens and assessments shall be prorated between Buyer and Seller as of the close of escrow based on the latest available tax information or, at Seller's election, such taxes, liens and assessments may be paid in full through escrow to the lienholder from the Deposit, so long as the Deposit is sufficient to RAOldtown\OTACO\Purchase and Sale Agreement- Dixon.DOC satisfy all outstanding liens. If such liens are paid through escrow, Escrow Holder shall cause the liens to be discharged and the discharge recorded prior to conveyance of fee title of the Property to Buyer. Any supplemental or escape real estate taxes and assessments on the Property attributable to the period prior to the close of escrow shall be paid by Seller outside of the escrow. All prorations shall be determined on the basis of a 360-day year. 4.10 Costs of Escrow. 4.10.1 Seller shall pay: (a) The cost of any obligations of Seller hereunder. 4.10.2 Buyer shall pay: (a) All escrow fees and costs associated with the purchase of the subject real property; (b) The cost of recording the Grant Deed, if any; (c) The cost of documentary transfer taxes in connection with the recordation of the Grant Deed, if any; (d) The cost of any obligations of Buyer hereunder; and (e) Any other closing costs or charges not expressly provided for herein and customarily paid by a Buyer of real property in Riverside County, California. 4.11 Broker's Commission. Buyer and Seller represent to one another that no broker or finder has been engaged in connection with the transaction contemplated by this Agreement, or to its knowledge is in any way connected with such transaction. Seller covenants and agrees that any broker fee or commission, which may be due or payable in connection with the closing of the transaction contemplated by this Agreement, shall be borne solely by Seller. Seller agrees to indemnify, defend, protect and hold harmless Buyer and its respective employees, agents, representatives, council members, attorneys, successors and assigns, from and against all claims of any agent, broker, finder or other similar party arising from or in connection with the sale of the Property to Buyer. 4.12 Escrow Cancellation Charges. In the event that this escrow shall fail to close by reason of the default of either party hereunder, the defaulting party shall be liable for all escrow and title cancellation charges. In the event that the escrow shall fail to close for any other reason, each party shall pay one-half (1/2) of all escrow and title cancellation charges. REPRESENTATIONS AND WARRANTIES BY SELLER. In consideration of Buyer's entering into this Agreement and as an inducement to Buyer to purchase the Property, Seller makes the following representations and warranties, each of which is material and is being relied upon by Buyer (the continued truth and accuracy of R:\Oldtown\OTACQ\Purchase and Sale Agreement - Dixon.DOC which shall constitute a condition precedent to Buyer's obligations to close hereunder and each of which shall survive the close of escrow): 5.1 This Agreement has been duly and validly authorized, executed and delivered by Seller and no other action is requisite to the valid and binding execution, delivery and performance of this Agreement by Seller; 5.2 There are no suits pending against or affecting or, to the best of Seller's knowledge, without having made investigation thereof, threatened against the Property or its use, whether in law or at equity; 5.3 Other than as disclosed in this Agreement, no joinder, consent, or waiver of or by any third party is necessary to permit the consummation by Seller of the transaction contemplated pursuant to this Agreement; 5.4 To Seller's best knowledge, there are no materials, reports and information in Seller's possession relating to the Environmental Condition (any condition that exists prior to or after the Closing Date, with respect to the air, land, soil, surface, subsurface strata, surface water, ground water, storm water or sediments) of the Property, and there are no outstanding environmental remediation orders or decrees (federal or state) regarding the Property. Seller shall deliver to Buyer any materials and reports relating to the Environmental Condition of the Property which comes into Seller's possession, and any information relating to the Environmental Condition of the Property of which Seller becomes aware; 5.5 To the best of Seller's knowledge, Seller is not aware of the existence of any violation of law or violation of governmental regulation with respect to the Property, including any Environmental Laws, as hereinafter/ defined; 5.6 There are no pending, or to the best of Seller's knowledge, without having made investigation thereof, threatened proceedings in eminent domain, which would affect the Property, or any portion thereof; 5.7 To the best of Seller's knowledge there has been no production, disposal or storage on the Property of any Hazardous Materials (as hereinafter defined) by Seller or any of the contractors, agents, employees or representatives of Seller or, to the best of Seller's knowledge, any previous owner or current or previous tenant of the Property; and to the best of Seller's knowledge, there has not been any other activity on the Property which could have resulted in the deposit or release on the Property of Hazardous Materials, or the violation of any Environmental Laws, or which could result in any proceeding or inquiry by any authority with respect thereto; 5.8 Seller is not a "foreign person" within the meaning of Internal Revenue Code 1445; and 5.9 As of the Closing Date, there shall be no leases and/or other agreements in existence affecting the Property. RAOldtown\OTACOWurchase and Sale Agreement - Dixon.DOC The term "Hazardous Materials' shall mean and include the following, including mixtures thereof: any hazardous substance, pollutant, contaminant, waste, by-product or constituent regulated under the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et sec; oil and petroleum products and natural gas, natural gas liquids, liquefied natural gas and synthetic gas usable for fuel; pesticides regulated under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. Section 136 et sec; asbestos and asbestos -containing materials, PCBs and other substances regulated under the Toxic Substances Control Act, 15 U.S.C. Section 2601 et se ; source material, special nuclear material, by-product material and any other radioactive materials or radioactive wastes, however produced, regulated under the Atomic Energy Act or the Nuclear Waste Policy Act of 1982; chemicals subject to the OSHA Hazard Communication Standard, 29 C.F.R. Section 1910.1200 et sec; industrial process and pollution control wastes, whether or not hazardous within the meaning of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; any substance defined as a "hazardous substance" in California Civil Code Section 2929.5(e)(2) or California Code of Civil Procedure Section 736(f)(3); and any other substance or material regulated by any Environmental Laws. The term "Environmental Laws" shall mean and include all federal, state and local statutes, ordinances, regulations and rules in effect on or prior to the date hereof relating to environmental quality, health, safety, contamination and clean-up, including, without limitation, the Clean Air Act, 42 U.S.C. Section 7401 et sec ; the Clean Water Act, 33 U.S.C. Section 1251 et sec; and the Water Quality Act of 1987, the Federal Insecticide, Fungicide, and Rodenticide Act 7 U.S.C. Section 136 et sec ; the Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. Section 1401 et sec; the National Environmental Policy Act, 42 U.S.C. Section 4321 et sec; the Noise Control Act, 42 U.S.C. Section 4901 et sec; the Occupational Safety and Health Act, 29 U.S.C. Section 651 et sec; the Resource Conservation and Recovery Act 42 U.S.C. Section 6901 et sec; as amended by the Hazardous and Solid Waste Amendments of 1984; the Safe Drinking Water Act, 42 U.S.C. Section 300f et sec; the Comprehensive Environmental Response, Compensation and Liability Act 42 U.S.C. Section 9601 et sue; as amended by the Superfund Amendments and Reauthorization Act, the Emergency Planning and Community Right -to -Know Act and the Radon Gas and Indoor Air Quality Research Act; the Toxic Substances Control Act 15 U.S.C. Section 2601 et sec; the Atomic Energy Act, 42 U.S.C. Section 2011 et seer; and the Nuclear Waste Policy Act of 1982, 42 U.S.C. Section 10101 et sec; and state and local environmental statutes and ordinances, with implementing regulations and rules in effect on or prior to the date hereof. 6. EMINENT DOMAIN OR TAKING; PHYSICAL DAMAGE OR DESTRUCTION. 6.1 If, prior to the close of escrow, any material portion of the Property is taken or if the access thereto or available parking area therefor is reduced or restricted by eminent domain or otherwise (or becomes the subject of a pending, threatened or contemplated taking which has not been consummated, other than any such taking prosecuted by or on behalf of the Buyer), Seller shall immediately notify Buyer of such fact. In such event, Buyer shall have the option, in its sole and absolute discretion, to terminate this Agreement upon written notice to Seller given not later than ten (10) business days after receipt of Seller's notice. If Buyer does not exercise this option to terminate this Agreement, neither party shall have the right to terminate this Agreement, but the Seller shall assign and turn over to Buyer, and the Buyer shall be entitled to receive and keep, all awards for the taking by eminent domain which accrue to R:\Oldtown\OTACQ\Purchase and Sale Agreement - Dixon.DOC Seller, and the parties shall proceed to the close of escrow pursuant to the terms hereof, without modification of the terms of this Agreement and without any reduction in the Purchase Price (except as otherwise provided pursuant to Paragraph 1.2 hereof). Unless and until this Agreement is terminated, Seller shall take no action with respect to any eminent domain proceeding without the prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed. 6.2 If, prior to the close of escrow, any material portion of the Property is physically damaged or destroyed due to any cause, natural or otherwise, including, without limitation, (i) fire or flooding, (ii) any destructive seismic or geological conditions such as any earthquake or tremor, subsidence, or unstable subsurface conditions; or (iii) a condition arising from any discharge of Hazardous Materials or other violation of any Environmental Laws, Seller shall immediately notify Buyer of such fact. In such event, Buyer shall have the option, in its sole and absolute discretion, to terminate this Agreement upon written notice to Seller given not later than ten (10) business days after receipt of Seller's notice. If Buyer does not exercise this option to terminate this Agreement, neither party shall have the right to terminate this Agreement, but the Seller shall assign and turn over, and the Buyer shall be entitled to receive and keep, all insurance proceeds paid by Seller's insurer in connection with such damage or destruction, and the parties shall proceed to the close of escrow pursuant to the terms hereof, without modification of the terms of this Agreement and without any reduction in the Purchase Price (except as otherwise provided pursuant to Paragraph 1.2 hereof). Unless and until this Agreement is terminated, Seller shall take no action with respect to any such damage and destruction without the prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed. 7. INCORPORATION OF EXHIBITS. All exhibits attached hereto and referred to herein are incorporated in this Agreement as though fully set forth herein. 8. ATTORNEYS' FEES. In any action between Buyer and Seller seeking enforcement of any of the terms and provisions of this Agreement, or in connection with the Property, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, not limited to taxable costs, reasonable attorneys' fees and reasonable fees of expert witnesses. 9. NOTICE,;. All notices, requests, demands and other communication given or required to be given hereunder shall be in writing and personally delivered, sent by first class United States registered or certified mail, postage prepaid, return receipt requested, or sent by a nationally recognized courier service such as Federal Express, duly addressed to the parties as follows: To Buyer: City of Temecula 43200 Business Park Drive Post Office Box 9033 Temecula, California 92589 Attention: John Meyer Tel: (909) 694-6412 Fax: (909) 693-3903 R:\Oldtown\OTACQ\Purchase and Sale Agreement - Dixon. DOC With a Copy To: Richards, Watson and Gershon 355 South Grand Avenue, 40th Floor Los Angeles, California 90071- 3101 Attention: Peter Thorson Tel: (213) 626-8484 Fax: (213) 626-0078 To Seller: Marion L. Dixon, Trustee c/o Dixon Family Trust 24962 Calle Aragon #B426 Laguna Woods, CA 91765 To Escrow Holder: First American Title Company 3625 Fourteenth Street Riverside, CA 92501 Tel: (909) 787-1723 Fax: (909) 784-7956 Attention: Debbie Newton, Title Officer Delivery of any notice or other communication hereunder shall be deemed made on the date of actual delivery thereof to the address of the addressee, if personally delivered, and on the date indicated in the return receipt or courier's records as the date of delivery or as the date of first attempted delivery, if sent by mail or courier service. Any party may change its address for purposes of this Paragraph 10 by giving notice to the other party and to Escrow Holder as herein provided. 10. ASSIGNMENT. Neither this Agreement nor any interest herein may be assigned by either party without the prior written consent of the other party. 11. BINDING EFFECT. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their successors and assigns. 12. ENTIRE .AGREEMENT. This Agreement contains all of the agreements of the parties hereto with respect to the matters contained herein, and all prior or contemporaneous agreements or understandings, oral or written, pertaining to any such matters are merged herein and shall not be: effective for any purpose. No provision of this Agreement may be amended, supplemented or in any way modified except by an agreement in writing signed by the parties hereto or their respective successors in interest and expressly stating that it is an amendment of this Agreement. 13. ENFORCEMENT OF AGREEMENT BY SELLER. If the sale of the Property is not consummated as a result of the Buyer's material default hereunder, then Seller may enforce R:\Oldtown\OTACQ\Purchase and Sale Agreement - Dixon.DOC its rights hereunder by an action against Buyer for damages, resulting from the material breach of this Agreement by Buyer. 14. ENFORCEMENT OF AGREEMENT BY BUYER. It is agreed that the rights granted to Buyer by Seller hereunder are of a special and unique kind and character, and that, if there is a breach by Seller of any material provision of this Agreement, Buyer would not have any adequate remedy at law. It is expressly agreed, therefore, that Buyer's rights hereunder may be enforced by an action for specific performance and such other equitable or legal relief as is provided under the laws of the State of California. 15. HEADINGS. The headings of this Agreement are for purposes of reference only and shall not limit or define the meaning of the provisions of this Agreement. 16. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. 17. SURVIVAL. Any provision hereof which is executory as of the Closing Date and all representations and warranties shall survive such close of escrow and delivery of the Grant Deed and shall continue to be a binding provision on the parties hereto according to its terms. 18. TIME OF THE ESSENCE. Time is of the essence of this Agreement. 19. THIRD PARTIES. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person, other than the parties hereto and their successors and assigns, any rights or remedies under or by reason of this Agreement. 20. SEVERABILITY. If any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein, unless such invalidity, illegality or unenforceability materially affects the economic terms of the transactions contemplated by this Agreement or the ability of either party to perform its obligations under this Agreement. In such case, either party may terminate this Agreement and the escrow upon written notice to the other party given no later than ten (10) business days after the party giving such notice becomes aware of such invalidity, illegality or unenforceability. In the event of such termination, all funds deposited with Escrow Holder by Buyer and any interest accrued thereon shall be returned to Buyer. 21. ADDITIONAL DOCUMENTS. Each party hereto agrees to perform any further acts and to execute, acknowledge and deliver any further documents that may be reasonably necessary to carry out the provisions of this Agreement. 22. IRREVOCABLE OFFER BY SELLER. Seller's execution and delivery to Buyer of this Agreement shall constitute an offer to sell the Property pursuant to the terms stated herein, which offer shall be irrevocable by Seller, provided that Buyer accepts such offer by executing and returning to Seller a counterpart of this Agreement on or before March 12, 2004. Seller R:\Oldtown\OTACQ\Purchase and Sale Agreement - Dixon.DOC understands and agrees that Buyer is a governmental entity which must schedule and hold one or more meetings of its governing body in order to authorize Buyer's acceptance of this offer and that Buyer is relying on the irrevocability of this offer in processing it for consideration by the City Council of the City of Temecula and its governing body. Seller further acknowledges and agrees that this Agreement is tendered under the provisions of California Evidence Code Section 1152, and in the; event this Agreement is not fully executed by the parties hereto, or is terminated for any reason whatsoever, this Agreement shall not be admissible to prove Buyer's liability in inverse condemnation, for precondemnation damages or otherwise, and may not be used as an admission of value in any eminent domain or other proceeding. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. "SELLER" MARION L. DIXON DIXON FAMILY TRUST dated February 22, 1980 MARION L. DIXON APPROVED AS TO FORM: Richards, Watson & Gershon -32 Peter Thorson, City Attorney R:\Oldtown\OTACQ\Purchase and Sale Agreement - Dixon.DOC "BUYER" THE CITY OF TEMECULA, a municipal corporation By: Jeff Stone, Mayor Attest: Susan Jones, City Clerk EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY .09, .17 AND .36 Acre, more or less, in Lots 3,4,5,6,8, 10 and 11 of Block 4, Map Book 015, Page 726 of Maps, SD Town of Temecula, in the City of Temecula, County of Riverside, State of California, according to records of the County Assessor of said County. 12012-0001\749075v1.doc A-1 12/02/03 ITEM 9 CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER CITY OF OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: AW'illiam G. Hughes, Director of Public Works/City Engineer DATE: March 16, 2004 SUBJECT: Authorize Temporary Street Closure of Third Street between Old Town Front Street and Murrieta Creek forthe Annual Old Town Bluegrass Festival event scheduled for March 21 and 22, 2004 and Delegate Authority to Issue a Special Events/Street Closures Permit to the Director of Public Works/City Engineer. PREPARED BY: q� Ronald J. Parks, Deputy Director of Public Works k-Sieve Charette, Associate Engineer RECOMMENDATION: That the City Council adopt a resolution entitled: RESOLUTION NO.2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING TEMPORARY STREET CLOSURE OF THIRD STREET BETWEEN OLD TOWN FRONT STREET AND MURRIETA CREEK FOR THE ANNUAL OLD TOWN BLUEGRASS FESTIVAL EVENT SCHEDULED FOR MARCH 21 AND 22, 2004 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURES BACKGROUND: The Old Town Bluegrass Festival event is scheduled for March 21 and 22, 2004 from 11:00 AM to 5:00 PM each day. The actual street closure will occur between the hours of 6:00 AM and 6:00 PM daily. This event will include blue grass bands from California and Arizona joining in a weekend of picking and fiddle playing. The Bluegrass Festival will offer traditional Appalachian Bluegrass, fiddlers, and hybridized Country/Bluegrass bands. All entertainment is free. The event will also include food vendors, craft vendors, children's programs and exhibits. The event will require assistance from the Public Works Department by providing support services for the street closure, public safety monitoring, and the permit process. Under Vehicular Code Section 21101, "Regulation of Highways", local authorities, for those highways under their jurisdiction, may adopt rules and regulations by ordinance or resolution for, among other instances, "temporary closing a portion of any street for celebrations, parades, local special events, and other purposes, when, in the opinion of local authorities having jurisdiction, the R:\AGENDA REPORTS\2004\031604\Bluegrass Festival Street Closure.DOC closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing". The City Council adopted Resolution No. 91-96 on September 10, 1991, which provided standards and procedures for special events on public streets, highways, sidewalks, or public rights -of -way. This resolution set forth processes for staff reviewing applications, denying approval or approving subject to conditions including events requiring changes in normal traffic patterns, and an appeal process to the City Manager. However the resolution did not delegate authority to temporarily close streets for these special events. The subject resolution delegates the authority to approve temporary street closures for this specific event, Old Town Bluegrass Festival, to the Director of Public Works/City Engineer. All other special events requiring temporary street closures, construction -related closures, etc, shall remain subject to the approval of the City Council subject to rules and regulations established by the City Council. These rules and regulations shall also be adopted by resolution in accordance with California Vehicular Code Section 21101. Some partial closures, such as limiting lane widths for construction purposes or partial closures for block parties on cul-de-sac streets only do not require full street closures. These and similar partial street closures or restrictions are not submitted for similar resolutions in order to reduce or eliminate the administrative impact on City Council and staff time. FISCAL IMPACT: The costs of police services, and for provision, placement, and retrieval of necessary warning and advisory devices by the Public Works Department are included in budgetary items. ATTACHMENTS: 1. Resolution No. 2004 2. Vicinity Map RAGENDA REPORTS\2004\031604\Bluegrass Festival Street Closure.DOC RESOLUTION NO.2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING TEMPORARY STREET CLOSURE OF THIRD STREET BETWEEN OLD TOWN FRONT STREET AND MURRIETA CREEK FOR THE OLD TOWN BLUEGRASS FESTIVAL EVENT SCHEDULED FOR MARCH 20 AND 21, 2004 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURES THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: WHEREAS, the California State Vehicular Code provides for the promulgation of rules and regulations for the temporary closure of public streets by local authorities by Resolution; and WHEREAS, the City Council desires to establish rules and regulations for the temporary closure of public streets in the interest of promoting safety and protection; and WHEREAS, the City of Temecula sponsors the Old Town Bluegrass Festival event, forwhich such temporary street closure on Third Street between Old Town Front Street and the Murrieta Creek promotes the safety and protection of persons using or proposing to use that street for the special event; and WHEREAS, the City Council desires to facilitate the issuance of permission to temporarily close Third Street for the Old Town Bluegrass Festival event scheduled for March 20 and 21, 2004; and, NOW, WHEREAS, the City Council desires to authorize the Director of Public Works/City Engineer to approve the temporary street closure of Third Street for the Old Town Bluegrass Festival event, and to establish the general rule that all other proposed temporary street closures shall be reviewed and approved subject to conditions, or disapproved, by the City Council; and THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula, hereby authorizes the Director of Public Works/City Engineer to permit the temporary street closure of Third Street for the Old Town Bluegrass Festival event scheduled for March 20 and 21, 2004, and affirms the general rule that all other temporary public street closures shall be approved or denied approval by the City Council. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula at a regular meeting held on the 161" day of March, 2004. ATTEST: Susan W. Jones, CMC City Clerk Michael S. Naggar, Mayor R:\AGENDA REPORTS\2004\031604\Bluegrass Festival Street Closure.DOC [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss CITY OF TEMECULA ) I, Susan W. Jones, CIVIC, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 2004- was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 16th day of March, 2004, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CIVIC, City Clerk 4 R:WGENDA REPORTS\2004\031604\Bluegrass Festival Street Closure.DOC f [J,Couat-ty '' Poch Stage 12x16' stage;4,4inch lhgs 20x2 Is, STREET STREET CLOSED , c6 Coff8e,� fgeg In Parking Lot with'1.2_ x 16 Stage* ❑ Wi4&ctus Stage.' In Parking Lot with 12x 16 stage, ♦ Vendors See Attached Jailhouse Courtyard Jam Sessions and/or workshops RV PARKING " Portapotties VICINITY MA1' r f ITEM 10 APPROVAL, DIREROF FINA CITY CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Cry I William G. Hughes, Director of Public Works/City Engineer DATE: March 16, 2004 SUBJECT: Amendment No. 2 to Annual Citywide Routine Maintenance Contract PREPARED BY:64 Bradley A. Buron, Maintenance Superintendent RECOMMENDATION: That the City Council approve Amendment Number 2 to the Annual Citywide Routine Maintenance Contract with Imperial Paving Company, Inc. for an amount of $50,000.00 and authorize the Mayor to execute the amendment. BACKGROUND: On June 24, 2003 the City Council approved the Annual Citywide Routine Maintenance Contract with Imperial Paving Company, Inc. to provide citywide routine maintenance and construction work throughout the City in the amount of $100,000.00. This work generally ran in costs from over $1,000 to under $25,000 and involves miscellaneous repairs to asphalt roads and A.C. berm projects that are too large for in-house crews. Amendment No. 1 was approved by City Council on October 22, 2003 in the amount of $100,000.00 for necessary A.C. repairs on Pechanga Parkway. Because of this project it was necessary to increase the amount of the annual contract to prepare for the upcoming winter months to provide for additional emergency A.C.. street surface repairs. Amendment No. 2 in the amount of $50,000.00 is necessary due to asphalt repairs that need be completed at various locations prior to the Slurry Seal Project proceeding. Although we also have other contractors available under contract, some of the types of services provided by others are limited and Imperial Paving Company, Inc. has been the most consistently available and responsive. The additional contractors on contract are specialized in different area's of construction and do not perform the same job tasks as Imperial Paving Company, Inc. This has resulted in their contract being exhausted sooner. The requested Amendment No. 2, and Amendment No. 1 to Imperial Paving Company, Inc. and the original contract for a total amount of $250,000.00. FISCAL IMPACT: Adequate funds have been budgeted in the FY2003-04 Public Works Maintenance Division, Routine Street Maintenance and Drainage Facility Maintenance for the original contract amount of $100,000.00 plus Amendment No. 1 in the amount of $100,000.00 and Amendment No. 2 in the amount of $50,000.00 for a total contract amount of $250,000.00. ATTACHMENT: 1. Amendment No. 1 2. Agenda Report June 24, 2003 RAAgenda Reports\2004\031604\Imperial Pave Amend 2 SECOND AMENDMENT TO ANNUAL MAINTENANCE CONTRACT BETWEEN CITY OF TEMECULA AND IMPERIAL PAVING COMPANY, INC. THIS SECOND AMENDMENT is made and entered into as of March 16, 2004 by and between the City of Temecula, a municipal corporation ("City') and Imperial Paving Company, Inc. ("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: This Amendment is made with respect to the following facts and purposes: A. On June 24, 2003 the City and Contractor entered into that certain agreement entitled "City of Temecula Agreement in the amount of $100,000.00 for Citywide Routine Street Maintenance" ("Contract"). B. The Contract was amended on October 22, 2003, in the amount of $100,000.00 to provide for additional Citywide Routine Street Maintenance ("Contract") C. The Parties now desire to amend the Agreement in the amount of $50,000.00 for additional Citywide Asphalt Street Repairs as set forth in this Amendment. D. The parties now desire to amend the Agreement as set forth in this Amendment. Section 3 of the Agreement is hereby amended to read as follows: a. Contractor shall be compensated for actual work performed on the basis of the labor,3nd equipment rates set forth in Exhibit "B", Labor and Equipment Rates, attached hereto and incorporated herein as though set forth in full, the cost of materials approved by the Director pursuant to the procedures set forth in Exhibit "A". The Second Amendment is for an amount not to exceed Fifty Thousand Dollars and No Gents ($50,000.00) is to provide for additional Citywide Asphalt Street Repairs for the upcoming Slurry Seal Project. The maximum amount of payment under the First Amendment amount of One Hundred Thousand Dollars and No Cents ($100,000.00) and the original Contract amount of One Hundred Thousand Dollars and No Cents ($100,000.00) shall not exceed the total contract amount of Two Hundred Fifty Thousand Dollars and No Cents ($250,000.00) unless a higher amount is approved by the City Council by amendment to this Agreement. 3. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. I R: IMAIN(AINIWKORDERSICONTRACTMASTERS12003-200411MPER/AL 03-04 AMEND 2.DOC IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CIVIC, City Clerk Approved As to Form: Peter M. Thorson, City Attorney CONTRACTOR Imperial Paving Company, Inc. 13555 E. Imperial Highway Whittier, CA 90605 (562) 523-0975 Fritz Coy, Secretary Treasure 2 R:IMAINTAINIWXORDERSICONTRAGTMASTERS12003-2004VMPERIAL 03-04 AMEND 2.DOC ITEM 11 AHFKUVAL CITY ATTORNEY( DIRECTOR OF FINANCE CITY MANAGER Cam_ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: March 16. 2004 SUBJECT: A I -Way Stop Control — La Serena Way and Meadows Parkway PREPARED BY: Ali Moghadam, Principal Engineer -Traffic RECOMMENDATION: That the City Council adopt a resolution entitled: RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ESTABLISHING AN ALL -WAY STOP CONTROL AT THE INTERSECTION OF LA SERENA WAY AND MEADOWS PARKWAY BACKGROUND: In the past, staff has received requests to considerthe installation of stop signs at the intersection of La Serena Way and Meadows Parkway to reduce vehicular speeds and provide a controlled crossing for students attending Rancho Elementary School. Currently, the students crossing this intersection are supervised by an adult crossing guard. A Multi -Way Stop Warrant Analysis was performed for the intersection to determine if the minimum warrant criteria for the installation of an All -Way Stop Control were satisfied. At their meeting of February 26, 2004, the Public/Traffic Safety Commission considered the request and approved (4-0) the staff recommendation to establish an interim All -Way Stop Control at the intersection of La Serena Way and Meadows Parkway. The preliminary traffic signal plans have been completed and we anticipate installation of the traffic signal in approximately seven (7) months. FISCAL IMPACT: Funds are available in Public Works Signing and Striping Account. ATTACHMENTS: 1. Resolution No. 2004- 2. Exhibit "A" — Location Map 3. Exhibit "B" — Public/Traffic Safety Commission Agenda Report — February 26, 2004 rAgenda Report12004k03l6\stoplaserenameadom.reso RESOLUTION 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ESTABLISHING AN ALL -WAY STOP CONTROL AT THE INTERSECTION OF LA SERENA WAY AND MEADOWS PARKWAY THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE AND ORDER AS FOLLOWS: SECTION 1. The City Council has considered the facts justifying the need forthe stop signs proposed for the location described in this resolution. The City Council hereby finds and determines that installation of the stop signs pursuant to this resolution will enhance the public health and safety and general welfare at this location and the proposed stop signs will not create any adverse conditions in the area. SECTION 2. Pursuant to Section 10.12.100, of the Temecula Municipal Code, the following All -Way Stop intersection is hereby established in the City of Temecula. La Serena Way and Meadows Parkway SECTION 3. The City Clerk shall certify to the passage and adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 16th day of March 2004. ATTEST: Susan W. Jones, CMC, City Clerk Michael S. Naggar, Mayor rAgenda Report12004\03161stoplasemnameadows.mso [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss CITY OF TEMECULA ) I, Susan W. Jones, CIVIC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution Na. 2004- was duly and regularly adopted bythe City Council at a regular meeting of the City Council on the 16th day of March 2004, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CIVIC, City Clerk OAgenda Report12004\0316\stopias mnameadows.reso AGENDA REPORT TO: Public/Traffic Safety Commission FROM: Ali Moghadam, P.E., Senior Engineer, Traffic DATE: February 26, 2004 SUBJECT: Item 5 Request for Multi -Way Stop Signs — Meadows Parkway and La Serena Way RECOMMENDATION: That the Public/Traffic Safety Commission recommend that the City Council adopt a resolution establishing Multi -Way Stop signs at the intersection of Meadows Parkway and La Serena Way. BACKGROUND: The City has received several requests to review the feasibility of installing multi -way stop signs at the intersection of Meadows Parkway and La Serena Way to reduce vehicular speeds and provide a controlled crossing for students attending Rancho Elementary School. The public has been notified of the Public/Traffic Safety Commission's consideration of this issue through the agenda notification process. Meadows Parkway is classified as a 76 foot wide four (4) lane Major Highway on the City's General Plan Circulation Element with two travel lanes in each direction, a raised median and a bike lane in each direction. The Average Daily Traffic (ADT) on Meadows Parkway is approximately4,800 south of La Serena Way. The speed limit is posted at 45 MPH on Meadows Parkway. La Serena Way is classified as a 64 foot wide four (4) lane Secondary Highway on the City's General Plan Circulation Element with two travel lanes in each direction and a bike lane in each direction. The ADT on La Serena Way is approximately 8,600 east of Meadows Parkway. The speed limit is posted at 45 MPH on La Serena Way. In order to evaluate the need for multi -way stop signs, entering vehicular volume data and accident history was reviewed for the intersection. This data along with an evaluation of other roadway conditions was used to perform a Multi -Way Stop Warrant analysis. A review of the accident history for the twelve (12) month period from January 1, 2003 to December 31, 2003, indicates that there were 2 collisions at this intersection, which are susceptible to correction by multi -way stop signs or traffic signals. The types of correctable collisions are right- angle or left -turn collisions. The Caltrans Traffic Manual indicates that the multi -way stop signs may be useful at locations where the volume of traffic on intersecting roads is approximately equal and/or where a combination of high speed, restricted sight distance and an accident history indicates that assignment of right-of-way is r:\tmfftc\commissn\agenda\2004\0122\Promenade/ajp necessary. Multi -way stop signs should not be used for controlling vehicular speed. There are three (3) criteria that Caltrans has established for the evaluation of Multi -Way Stop signs. These criteria are as follows: Where signals are: warranted and urgently needed, the multi -way stop may be an interim measure that can be installed quickly to control traffic while arrangements are being made for the signal installations. 2. An accident problem, as indicated by five (5) or more reported accidents within a twelve (12) month period of a type susceptible to correction by a multi -way stop installation. Such accidents include right and left -turn collisions as well as right-angle collisions. Minimum Traffic Volumes a. The total vehicular volume entering the intersection from all approaches must average at least 500 vehicles per hour for any eight (8) hours of an average day, and b. The combined vehicular and pedestrian volume from the minor street or highway must average at least 200 units per hour for the same eight (8) hours, with an average delay to minor street vehicular traffic of at least 30 seconds per vehicle during the maximum hour, but C. When the 85'" percentile approach speed of the major street traffic exceeds 40 miles per hour, the minimum vehicular volume warrant is 70 percent of the above requirements. The multi -way stop warrant: analysis performed forthe intersection indicates that the minimum traffic volume warrant satisfies seventy percent (70%) of the requirements and multi -way stop signs are warranted at this location. In this case the warrant is satisfied because the approach speed on La Serena Way exceeds 40 MPH. This location has been identified in the City's Capital Improvement Program for construction of a traffic signal in Fiscal Year 2003/2004. The traffic signal is currently in the final design stages and the design should be completed within the next month. The current schedule anticipates a "tum-on" date of late Augustlearly September. Since multi -way stop signs are warranted at this location and traffic signal controls are scheduled to be in place in seven (7) months, staff recommends the installation of "interim" multi -way stop signs at the intersection of La Serena Way and Meadows Parkway. FISCAL IMPACT: None Attachment: 1. Exhibit "A" — Location Map 2. Exhibit "B" — Multi -Way Stop Warrant Analysis r.\traffic\commissMagenda\2004\0122\Pmmenade/ajp ITEM 12 APPROVAL CITY ATTORNEY IWP DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECUAI AGENDA REPORT TO: City Manager/City Council FROM: �M illiam G. Hughes, Director of Public Works/City Engineer DATE: March 16, 2004 SUBJECT: Acquisition Agreement Between The City of Temecula and the Jubela Family trust - French Valley Parkway/1-15 Overcrossing & Interchange - Prcject No. PW02-11 PREPARED BY: Amer Attar, Principal Engineer Marilyn Adarbeh, Property Agent RECOMMENDATION: That the City Council: Ratify the PURCHASE AND SALE AGREEMENT BETWEEEN THE CITY OF TEMECULA AND ERNEST JOE and ETHYL B. JUBELA FAMILY TRUST, for the acquisition of certain real property, APN 910-262-004, in the amount of $662,545.00 plus the associated escrow fees and supercede the originally approved agreement in the amount of $611,580.00. BACKGROUND: Parcel 20 on Tract Map 23561-2, APN 910-262-004, was appraised on February 28, 2003 to have a value of $611,580. On March 18, 2003, the City Council approved the appraisal report and authorized acquisition of the property. The offer was presented to the property owner on April 28, 2003 and negotiations proceeded through October, 2003. At that time, the appraisal was updated to assist in reaching a settlement with the property owner. The new appraisal raised the value of the property by $1.00 per square foot. This updated appraisal increased the value of the property to $662,545.00. The property owner agreed to the new value and accepted the City's new offer. The agreement was signed on December 12, 2003. The acquisition agreement was presented to the City Council for approval at the January 13, 2004 meeting. However, the report identified the acquisition amount to be $611,580, the original appraised value and the original City offer to the property owner. This report amends the acquisition agreement to the agreed upon acquisition cost of $662,545. This amount is within the 10% contingency the City Council approved as part of the acquisition authorization on March 18, 2003. FISCAL IMPACT: The French Valley Parkway Interchange Project is funded through Capital Project Reserves. The funds for the land acquisition have been budgeted in the Capital Improvement Program, Fiscal Years 2003-2007. Adequate funds are available in Account No. 210-165-726-5700 for the total amended acquisition cost of $662,580.00, plus the associated escrow fees. ATTACHMENTS: Purchase and Sale Agreement R:\agdrpt\2003\0610\PW02-11 automall Agree n 1 2 3 4 5 6 7 I 9 10 11 12 13 14 15 16 17 18 E1'] 20 21 22 23 24 25 26 27 m PROJECT: FRENCH VALLEY PARKWAY / INTERSTATE 15 OVERCROSSING AND INTERCHANGE CITY OF TEMECULA PROPERTY:3 APN: 910-262-004 AGREEMENT OF PURCHASE AND SALE THIS AGREEMENT is entered into by and between the CITY OF TEMECULA ("Buyer") and ERNEST JOE AND ETHEL B. JUBELA, CO -TRUSTEES OF THE ERNEST JOE JUBELA AND ETHEL B. JUBELA FAMILY TRUST PURSUANT TO THE FIRST AMENDMENT THEREOF DATED SEPTEMBER 1, 1989 ("Seller"). RECITALS A. Seller owns certain real property located in the City of Temecula, Riverside County, California, bearing Assessor Parcel No. 910-262-004, more particularly described in Exhibit "A" attached hereto and made a part hereof (the "Property'). B. Buyer desires to purchase a fee interest in Assessor's Parcel Number 910-262-004, shown on Exhibit "A" attached hereto and made a part hereof and Seller desires to sell the Property. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. AGREEMENT The parties therefore agree as follows: 1. PURCHASE. Buyer agrees to buy and Seller agrees to sell and convey the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW. Upon execution of this Agreement by all parties, the parties shall open an escrow (the "Escrow") with a reputable escrow company (the "Escrow Holder"), for the purpose of consummating the purchase and sale of the Seller's interest in the Property as described herein. The parties hereto shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder as may be required to consummate the transaction contemplated by this Agreement. Any such instructions shall not conflict with, amend, or supersede any provisions of this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall Page 1 of 8 1 control unless the parties expressly agree in writing otherwise. The Escrow Instructions 2 shall include the following terms and conditions of sale: 3 2.1 Purchase Price. 4 The total purchase price for the Property shall be the sum of Six Hundred Sixty Two Thousand Five Hundred Forty Five Dollars ($662,545.00). The 5 purchase price shall be paid by Buyer to Seller in cash at the Close of Escrow. Buyer 6 shall deposit prior to Close of Escrow the funds required to be deposited by it in order to allow the Escrow to close. 7 2.2 Close of Escrow. 8 Escrow shall close on or before one hundred twenty (120) days 9 following the execution of this Agreement (the "Close of Escrow"). If Escrow is not in a 10 condition to close by the Close of Escrow, and the failure to close is due to unforeseen conditions of title or interest of third parties in the Property that cannot be resolved in 11 Escrow, then Buyer may, at its option, request the cancellation of the Escrow and the return of any funds it has deposited into Escrow. Thereupon, all obligations and 12 liabilities of thE! parties under this Agreement shall cease and terminate. If no such 13 request is made, Escrow shall be closed as soon as possible thereafter. 14 2.3 Condition of Title to Property. 15 Seller shall cause the conveyance of his interests in the Property to Buyer as evidenced by a CLTA Standard Form Policy or Binder of Title Insurance ('Title 16 Policy") issued by a reputable title company (the "Title Company") in an amount equal to 17 the purchase price. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer. Notwithstanding the foregoing, any 18 exceptions to title representing monetary liens or encumbrances are hereby disapproved by Buyer, and Escrow Holder is hereby authorized and instructed to cause 19 the reconveyance, partial reconveyance, or subordination, as the case may be, of any such monetary exceptions to Buyer's title to the Property at or prior to the Close of 20 Escrow. 21 2.4 Escrow and Closing Costs. 22 A. Because of Buyer's status as a public agency, no 23 documentary transfer tax will be payable with respect to this conveyance, pursuant to California Revenue and Taxation Code Section 11922. Similarly, no recording fees will 24 be payable with respect to the recording of the Grant Deed, pursuant to Government 25 Code Section 27383. Buyer shall pay the cost of the Title Policy, the Escrow fees, and all other costs and expenses incurred herein. 26 B. To the extent that Seller has prepaid any taxes or 27 assessments attributable to the Property; Seller shall be solely responsible for obtaining . any refund due thereon from the taxing authority. Upon written request, Buyer shall 28 assist Seller, at Seller's sole cost, in obtaining said refund, if any; however, in no case Page 2 of 8 l 2 3' 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 191 20 21 22 23 241 25 26 27 28 shall Buyer credit or otherwise pay Seller for that refund, if any, through or outside of Escrow. 2.5 Deposit of Funds and Documents. A. Prior to Close of Escrow, Buyer shall deposit into Escrow (i) all Escrow and Closing Costs as described above; (ii) the purchase price to be paid to Seller through Escrow; (iii) such other documentation as is necessary to close Escrow. B. Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed Grant Deed for conveyance of Seller's interests in the Property to Buyer; and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow. The Close of Escrow is subject to the following conditions: A. All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow; and B. Seller shall timely perform all obligations required by the terms of this Agreement to be performed by them. 2.7 Seller's Conditions Precedent to Close of Escrow. For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. c7� 7 I7:7x.9��� t�[ilrF _ ► I _ ORTA1011111Ix.YrMMINIUMN Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: A. The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; B. To Seller's knowledge, no litigation and no govern -mental, administrative or regulatory act or proceeding regarding the environmental, health and safety aspects of the Property is pending, proposed or threatened; C. Seller will not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect his interests in the Property without the prior written consent of Buyer; Page 3 of 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 221 23 24 25 26 27 28 D. Seller has and shall have paid, before Close of Escrow, his pro rata share of all taxes and assessments levied and assessed against the Larger Parcel. If not paid prior to Close of Escrow, Seller hereby authorizes Escrow Holder to disburse to the taxing authority, from funds otherwise due to Seller, an amount sufficient to satisfy his pro rata share of said taxes and/or assessments; and E. Seller is aware of his obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Larger Parcel. 4. ACKNOWLEDGMENT OF FULL BENEFITS AND RELEASE. A. By execution of his Agreement, Seller, on behalf of himself/herself, his/her heirs, executors, administrators, successors and assigns, hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer, and Seller hereby expressly and unconditionally waives any claim for damages, relocation assistance benefits, interest, loss of goodwill, severance damages, claims for inverse condemnation or unreasonable pre -condemnation conduct, or any other compensation or benefits other than as already expressly provided for in this Agreement, it being understood that this is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Property by Buyer. B. This Agreement arose out of Buyer's efforts to acquire the Property through its municipal authority. Seller, on behalf of himself, his heirs, executors, administrators, successors and assigns, hereby fully releases Buyer, its successors, agents, representatives (including attorneys), and assigns, and all other persons and associations, known or unknown, from all claims and causes of action by reason of any damage which has been sustained by Seller, or may be sustained by Seller, as a result of Buyer's efforts to acquire the Property or to construct the works of improvement thereon, or any preliminary steps thereto. This Agreement does not, and shall not be construed to, require Seller to indemnify Buyer for damages which may arise as a result of Buyer's efforls to construct improvements on the Property. C. Seller hereby acknowledges that Seller either has consulted with legal counsel, or had an opportunity to consult with legal counsel, regarding the provisions of the California Civil Code section 1542, which provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." Page 4 of 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 20 21 22 23 24 25 26 27 28 Seller acknowledges that Seller may have sustained damage, loss, costs or expenses which are presently unknown and unsuspected, and such damage, loss, costs or expenses which may have been sustained, may give rise to additional damage, loss, costs or expenses in the future. Nevertheless, Seller hereby acknowledges that this Agreement has been negotiated and agreed upon in light of that situation, and hereby expressly waives any and all rights which they may have under California Civil Code Section 1542, or under any statute or common law or equitable principal of similar effect. D. Seller hereby agrees and consents to the dismissal of any condemnation action which has been or may be commenced by Buyer in the Superior Court of Riverside County to condemn said land, and waives any and all claim to money that has been or may be deposited in court in such case or to damages by reason of the filing of such action. This acknowledgment and release shall survive the Close of Escrow. 5. REMEDIES. If Seller defaults under this Agreement, then Buyer may, at Buyer's option, terminate the Escrow or initiate an action for specific performance of this Agreement, in addition to pursuing any other rights or remedies that Buyer may have at law or in equity. If Buyer defaults under this Agreement, then Seller may, at Seller's option, terminate the Escrow or pursue any rights or remedies that Seller may have at law or in equity. 6. MISCELLANEOUS. A. Notice. Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered in person or may be deposited in the United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: Ernest Joe and Ethel B. Jubela 3577 Via Loma Vista Escondido, California 92029 Buyer: City of Temecula 43200 Business Park Drive P. O. Box 9033 Temecula, California 92589-9033 Any notice or other document sent by registered or certified mail as aforesaid shall The deemed to have been effectively served or delivered at the expiration of twenty-four (24) hours following the deposit of said notice or other document in the United States mail. Page 5 of 8 1 6i 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 251 26 27 28 B. Time of Essence. Time is of the essence with respect to each and every provision hereof. C. Assignment. Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other parties. D. Governing Law. All questions with respect to this Agreement, and the rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. E. Inurement. Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of, and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. F. Attorney Fees. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. G. Entire Agreement. This Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. H. Additional Documents. All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. I. No Merger. All warranties, representations, acknowledgments, releases, covenants and obligations contained in this Agreement shall survive delivery and recordation of the Grant Deed. J. Authority to Execute on Behalf of Buyer. Shawn Nelson represents to Seller that he is the City Manager of the City of Temecula and that he is authorized by Buyer to execute this Agreement on its behalf. K. Ratification. This Agreement is subject to approval and ratification by the City of Temecula. L. Counterparts. This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. Page 6 of 8 1 2 3 f7l 5 6 7 8 " 10 11 12 13 14 15 16 17 11M 191 20 21 22 23 24 25 26 27 28 7. RIGHT OF POSSESSION. "It is agreed and confirmed by the parties hereto that notwithstanding other provisions in this agreement, the right of possession and use of the subject property by Buyer, including the right to remove and dispose of improvements, shall commence upon execution of this document by the Executive Director of the City of Temecula or the close of escrow controlling this transaction, whichever occurs first, and that amount shown in Clause 2.1 herein includes, but is not limited to, full payment for such possession and use, including damages, if any, from said date." Page 7 of 8 1 2 3 4 51 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 211 221 23 24 25 26 JS:sh 4/28/027 8.286 28 EXECUTED on the date or dates set forth below. This Agreement shall be effective as of the date signed by all parties. DATED: I 3 SELLER: (To be fill in by Chief Executive) RECOMMENDED FOR APPROVAL: By: JAN SPINDL R Real Property Agent THE ERNEST JOE AND ETHEL B. JUBELA FAMILY TRUST PURSUANT TO THE FIRST AMENDMENT THEREO SEPTEMBER1, 1989 _/I /I // M Co- ETHEL B. JUBELA Co -Trustee BUYER: CITY OF TE ECU By: SHAWN NELSON, City Manager ATTEST: APPROVED AS TO FORM: By "' P er M. Thorson, City Attorney SUS 'N. JONES, OMC, City Clerk Page 8 of 8 EXHIBIT "A" PARCEL 20, INCLUSIVE OF PARCEL MAP NO. 23561-2 ON FILE IN BOOK 168 PAGES 71 THROUGH 73, INCLUSIVE OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA EXCEPTING THEREFROM MINERAL RIGHTS MORE THAN 500 FEET BELOW THE SURFACE OF PROPERTY, WAIVING THE RIGHT OF SURFACE ENTRY AS RESERVED IN GRANT DEED RECORDED DECEMBER 21, 1992 AS INSTRUMENT NO. 485304 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA (APN 910-262--004) 1 1 i fit f W �CQ fii \F {t wl tit }� / tf:` to 401m �@ 610 6 t t z 6 F- a. LL Z /O V I 1 1 1 I i `0\0 F� Y /S _AVENUE--s 1 � 1 M' 11i R 4 c O i I 1 x S -IRR I t d 0�1' tib _ Y YA IL�I I 19 .� ES.x.0 �y � I •u� iNM �04 _ _ 1�€FF fe ill s Oi 4O sea . 1 e? x oy I �} g p 1 S c (QGf R O �yI 11 n ITEM 13 CITY ATTORNEY DIRECTOR OF FIP CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: , William G. Hughes, Director of Public Works/City Engineer DATE: 1 March 16, 2004 SUBJECT: Completion and Acceptance of the Intersection Traffic Monitoring System and Traffic Signal Interconnect - Project No. PW99-05 PREPARED BY: Ali Moghadam, Principal Engineer, Traffic RECOMMENDATION: That the City Council: Accept the construction of the Intersection Traffic Monitoring System and Traffic Signal Interconnect, Project No. PW99-05, as complete and direct the City Clerk to: 2. File the Notice of Completion, release the Performance Bond and accept a one (1) year Maintenance Bond in the amount of 10% of the contract amount, and; 3. Release the Materials and Labor Bond seven (7) months after the filing of the Notice of Completion if no liens have been filed. BACKGROUND: On September 24, 2002, City Council awarded a construction contact for Project No. PW99-05, Intersection Traffic Monitoring System and Traffic Signal Interconnect, to DBX, Inc. in the amount of $945,103.00. This combined project included the installation of a fiber optic backbone system and Closed Circuit TV (CCTV) cameras at eight (8) locations throughout the City, and the installation of a traffic signal interconnect facility on Winchester Road between Margarita Road and Murrieta Hot Springs Road. The Contractor has completed the work in accordance with the approved plans and specifications to the satisfaction of the Director of Public Works/City Engineer. All work will have a warranty for a period of one (1) year from the date of acceptance by the City. The final amount of the contract including the retention amount is $882,139.00. The construction retention for this project will be released on or about thirty-five (35) d ays a fter t he N otice o f Completion has been recorded. FISCAL IMPACT: The Intersection Traffic Monitoring System Project is a Capital Improvement Project funded through Development Impact Fees — Traffic Signal, TEA-21 and CMAQ grants. The project was constructed under budget for a final amount of $882,139.00. rAAGENDA REPORTS/2004/031604/PW99-05 Acceptance ATTACHMENTS: 1. Notice of Completion 2. Maintenance Bond 3. Contractor's Affidavit rAAGENDA REPORTS/2004/031604/PW99-05 Acceptance RECORDING REQUESTED BY AND RETURN TO: CITY CLERK CITY OF TEMECULA P.O. Box 9033 43200 Business Park Drive Temecula, CA 92589-9033 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT: 1. The City of Temecula is the owner of the property hereinafter described. Nature of Interest Vendee Under Contract. 2. The full address of the City of Temecula is 43200 Business Park Drive, Temecula, California 92590. 3. A Contract was awarded by the City of Temecula to DBX, Inc., 42066 Avenida Alvarado, Suite C, Temecula, CA 92590to perform the following work of improvement: INTERSECTION MONITORING SYSTEM & TRAFFIC SIGNAL INTERCONNECT Project No. PW99-05 4. Said work 'Nas completed by said company according to plans and specifications and to the satisfaction of the Director of Public Works of the City of Temecula and that said work was accepted by the City Council of the City of Temecula at a regular meeting thereof held on March 16, 2004. That upon said contract the Developers Surety and Indemnity Company was surety for the bond given by the said company as required by law. 5. The property on which said work of improvement was completed is in the City of Temecula, County of Riverside, State of California, and is described as follows: Intersection Traffic Monitoring System and Traffic Signal Interconnect Project No. PW99-05 6. The location of said property is: Various intersections, Temecula, California Dated at Temecula, California, this 16" day of March, 2004 City of Temecula Susan W. Jones CMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones CMC, City Clerk of the City of Temecula, California and do hereby certify under penalty of perjury, that the foregoing NOTICE OF COMPLETION is true and correct, and that said NOTICE OF COMPLETION was duly and regularly ordered to be recorded in the Office of the County Recorder of Riverside by said City Council. Dated at Temecula, California, this 16" day of March, 2004. City of Temecula Susan W. Jones CMC, City Clerk R:\CIMPROJECTMPW99\99-05\COMPLETION NOTE.doc EXECUTED IN TWO COUNTERPARTS BOND #5624363 PREMIUM: INCLUDED IN PERFORMANCE BOND CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT MAINTENANCEBOND PROJECT NO. PW99-05 INTERSECTION TRAFFIC MONITORING SYSTEM INSTALLATION OF TRAFFIC S/ONAL INTERCONNECT CCTvICOMMUNICATION SYSTEM FEDERAL AID PROJECT No. ITS 99-5459(010) KNOW ALL PERS014S BY THESE PRESENT THAT: DBX, INCORPORATED 42066 AVENIDA ALVARADO, STE. C TEMECULA, CA 92590 NAME AND ADDRESS CONTRACTOR'S a CORPORATION hereinafter called Principal, and (fill in wt*d*r a CcvpomBon, PaAnam or ind;idua0 GREAT AMERICAN INSURANCE COMPANY 750 THE CITY DRIVE SOUTH ORANGE, CA 92868 NAME AND ADDRESS OF SURETY hereinafter Called SURETY, are held and firmly bound unto CITY OF TEMECULA, hereinafter called OWNER, In the penal sum of EIGHTY-EIGHT THOUSAND TWO HUNDRED THIRTEEN DOLLARSand NINETY CENTS ($ 88.213.90 , in lawful money of the United States, said sum being not less than tan (10%) of the Contract value payable by the said City of Temecula under the terms of the Contract, for the payment of which, we bind ourselves, successors, and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION Is such that whereas, the Principal entered Into a certain Contract with the OWNER, dated the 24TH day of SEPTEMBER , 2002, a copy of which Is hereto atlachad and made a part hereof for the construction of PROJECT NO. PW99- 05,1NTERSECTION TRAFFIC MONITORING SYSTEM. WHEREAS, said Contract provides that the Principal will furnish a bond conditioned to guarantee for the period of QQg (1) year after approval of the final estimate on said job, by the OWNER, against all defects in workmanship and materials which may become apparent during said period: and WHEREAS, the said Contract has been completed, and was the final estimate approved on _ OCTOBER 21 _, 2003 NOW, THEREFORE:, THE CONDITION OF THIS OBLIGATION IS SUCH, that If within one year from the date of approval of the final estimate on said job pursuant to, the Contract, the work done under the terms of said Contract shall disclose poor workmanship in the execution of said work, and the carrying out of the terms of said Contract, or it shall appear that defective materials were furnished thereunder, then this obligation shall remain in full force and virtue, otherwise this instrument shall be void. MMNTENMCE 80NO M•t axaPanor�r9PWR960A990SSP ilraavgwl As a part of the obligation secured hereby and In addition to the face amount specified, costs and reasonable expenses and fees shall be Included, including reasonable attorney's fees incurred by the City of TEMISCUla in successfully enforcing this obligation, all to be taxed as costs and Included in any, judgment rendered. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract, or to the work to be performed thereunder, or to the specifications accompanying the same, shall in any Way affect its obligations on this bond, and It does hereby Hralve notice of any such change, extension of time, alteration, or addition to the terms of the Contract, or to the work, or to the Specifications. Signed and sealed this MARCH 2 day of, 200.4 (Seel) GREAT AMERICAN SUREE��TY��IN��SURANCCEE COMPANY MATTHEW P. FLAKE (Name) ATTORNEY —IN —FACT (Title) APPROVED A13 TO FORM: Peter M. Thorson:, City Attorney MNNTENANCEsoNo pRf pAL DB%, INCORPORATED By: JIM)) RRY (PRESIDENT & SEC/TREAS (ntle) W- (Name) Mae) M-2 ti aaw.a�:a UALII-UKNIA ALL—NGIKYUM: ALKNUWLLUUMENT STATE OF CALIFORNIA COUNTY OF RIVERSIDE )n 03/08/04 bE,fore me, PHYLLISSA (jMAYNOR - NOTARY PUBLIC ersonally appearedIIA PERRY personally known to me to be the person whose name is ubscribed to the within instrument and acknowledged to me that he executed the same in his uthorized capacities, and that by his signature on the instrument the person or the entity upon ehalf of which the person acted, executed the instrument. PHl'WSSA G. MAYNOR ogsw S Catrntadon$1270713 Y Na" PU)oc - Cdlfomlo RhmWav County �'MCamrrc6P7YasAu611.2104 J WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document of Type of Document: ment Date: ___ ___________________ Number of Pages: r(s) Other Than Named Above: Claimed by Signer(s) gner's Name: lim PerM Individual Corporate Officer Title(s): PRESIDENT AND SECRETARY/TREASURER ❑ Partner ❑ Attorney -in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: gneris Representing: DBX.INC. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County Of orange On 3-2-04 before me, Lexie Sherwood - Notary Public DATE NAME. TITLE OF OFFICER- E.G..'JANE DOE, NOTARY PUBLIC personally appeared -Matthew P. Flake NAME(S) OF SIGNER(S) 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 ac- knowledged to me that he/she/they executed the same in his/her/their authorized m� capacity(ies), and that by his/her/their LEXIE .>HERWOOD .0 COhVA R 1311304 ; signature(s) on the instrument the person(s), • NOTARYPUBLIC-CIA0 n up or the entityon behalf of which the ORAIJGE COUNTY COMM, I:XP.JUL�o5 person(s) acted, executed the instrument. WITNESS my hand and official seal. r �AyA `! SIGNATURE OF NOTARG f=` OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLA114ED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER MAINTENANCE BOND TITLE OR TYPE OF DOCUMENT TITLI:(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL 2 Q ATTORNEY -IN -FACT NUMBER OF PAGES ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: 3-2-04 DATE OF DOCUMENT SIGNER IS REPRESENTING: N/A N EofvERs S)ORENT IES) GREAT AMERICAN INSURANCE COMPANY SIGNER(S) OTHER THAN NAMED ABOVE S 959D (4M) GREAT AMERICAN INSURANCE COMPANY® Administrative Office: 580 WALNUT STREET • CINCINNATI, OHIO 4522 • 513-369-5000 • FAX 513-723-2740 The number of persons authorized by this power of attorney is not more than FIVE No. 0 14191 PO WER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That the GREAT AMERICAN INSURANCE COMPANY, a corporation organized and existing under and by virtue of the laws of the State of Ohio, does hereby nominate, constitute and appoint the person or persons named below its true and lawful attorney -in - fact, for it and in its name, place and stead to execute in behalf of the said Company, as surety, any and all bonds, undertakings and contracts of suretyship, or other written obligations in the nature thereof; provided that the liability of the said Company on any such bond, undertaking or contract of suretyship executed under this authority shall not exceed the limit stated below. Name Address Limit of Power DAVID L. CULBERTSON RICHARD A. COON ALL OF ALL CHARLES L. FLAKE LEXIE SHERWOOD ANAHEIM, UNLIMITED MATTHEW P. FLAKE CALIFORNIA This Power of Attorney revokes all previous powers issued in behalf of the attomey(s)-in-fact famed above. IN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate seal hereunto affixed this 24th day of November, 2003, Attest GREAT AMERICAN INSURANCE COMPANY STATE OF OHIO, COUNTY OF HAMILTON - as On this 24th day of November, 2003 , before me personally appeared DOUGLAS R. BOWEN, to me known, being duly sworn, deposes and says that he resides in Cincinnati, Ohio, that he is the Divisional Senior Vice President of the Bond Division of Great American Insurance Company, the Company described in and which executed the above instrument; that he knows the seal of the said Company; that the seal affixed to the said instrument is such corporate seal; that it was so affixed by authority of his office under the By -Laws of said Company, and that he signed his name thereto by like authority. This Power of Attorney is granted by authority of the following resolutions adopted by the Board of Directors of Great American Insurance Company by unanimous written consent dated March I, 1993. RESOLVED: That the Division President, the several Division Vice Presidents and Assistant Vice Presidents, or anv one of them, be and hereby is authorized, from time to time, to appoint one or more Attornevs-in-Fact to execute on behalf of the Companv, as surety, anv and all bonds, undertakings and contracts ojsuretvship, or other written obligaions in the nature thereof,- to prescribe their respective duties and the respective limits of their authority; and to revoke any such appointment at any time. RESOLVED FURTHER: That the Companv seal and the signature of anv of the aforesaid officers and any Secretary or Assistant Secretary of the Company may be aff red byjacsimile to any power of attorney or certificate ojeither given for the execution of anv bond, undertaking, contract or suretyship, or other written obligation in the nature thereof, su eh signature and seal when so used being herebv adopted by the Companv as the original signature ofsuch officer and the original seal of the Company, to be valid and binding upon the Companv with the same force and effect as though manually affixed. CERTIFICATION I, RONALD C. HAYES, Assistant Secretary of Great American Insurance Company, do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of March 1, 1993 have not been revoked and are now in full force and effect. Signed and sealed this 2ND . day of MARCH , 2004 S 1029T (limo) TERRORISM COVERAGE RIDER NOTICE•DIZEMOSURE OF TFRRORISM COVERACM AND PREMIUM Tltc Terrorism Risk Insurance Act af2002 establishes a program within the Department of the Treasury, under which the federal government shares, with the insuraia m industry, the risk of loss from future tourist attacks. The Ad applies when the Secretary of the Treasury codifies that an event meets the definition of an Act of Terrorism, The Act provides that, to be certified, an Act of Terrorism must cause losses of at least five million dollars and must have been committed by as individual or individuals acting an behalf of any frimiLm person or foreign interest to cooma the governmcat or population of the United States. To be attached to and form part of Bond No. 5624363 , effective 3-2-04 In accordance with the Terrorism Risk Insurance Ad of 2002, we are providing this disclosure notice for bonds on which Great American Insurance Company, its afrtliates (including, but not limited to Great American Alliance Insurance Company, Great American Insurance Company of New York and Great American Assurance insurance Company) is the surety. The United States GoYetmltent, Department of the Treasury, will pay a share of terrorism losses insured under the terms of the Act. The federal sham equals 900/a of that portion of the amount of such insured losses that exceeds the applicable insurer rttcation. This Coverage Part/Policy covets certain losses caused by tetrudsm. is accordance with the Federal Terrorism Risk insurance Act of 2002, we are required to provide you with a notice disclosing the portion of your premium, if arty, attributable to the coverage arising from losses for Terrorist Acts Certified under that Act. The portion of your annual premium that is attributable to coverage for Terrorist Achy Certified under the Act is : S:00. CITYOF TEMECULA, PUBLIC WORKS DEPARTMENT CONTRACTOR'S AFFIDAVIT AND FINAL RELEASE PROJECT NO. PW99-05 INTERSECTION TRAFFIC MONITORING SYSTEM INSTALLATION OF TRAFFIC SIGNAL INTERCONNECT CCTVICOMMUNICATION SYSTEM FEDERAL AID, PROJECT No. ITS 99-5459(010) This is to certify that, (hereinafter the "CONTRACTOR") declares to the City of Temecula, under oath, that he/she/it has paid in full for all materials, supplies, labor, services, tools, equipment, and all other bills contracted for by the CONTRACTOR or by any of the CONTRACTOR's agents, employees or subcontractors used or in contribution to the execution of it's contract with the City of Temecula, with regard to the building, erection, construction, or repair of that certain work of improvement known as PROJECT NO. PW99-05, INTERSECTION TRAFFIC MONITORING SYSTEM, situated in the City of Temecula, State of California, more particularly described as follows: INTERSECTION TRAFFIC MONITORING SYSTEM TRAFFIC SIGNAL INTERCONNECT CCTV INSERT TITLE OF WORK HERE The CONTRACTOR declares that it knows of no unpaid debts or claims arising out of said Contract which would constitute grounds for any third party to claim a Stop Notice against of any unpaid sums owing to the CONTRACTOR. Further, in connection with the final payment of the Contract, the CONTRACTOR hereby disputes the following amounts: Description Dollar Amount to Dispute Pursuant to Public Contracts Code §7200, the CONTRACTOR does hereby fully release and acquit the City of Temecula and all agents and employees of the City, and each of them, from any and all claims, debts, demands, or cause of action which exist or might exist in favor of the CONTRACTOR by reason of payment by the City of Temecula of any contract amount which the CONTRACTOR has not disputed above. Dated: MARCH 3, 2004 CONTRACTOR By: Signature JIM PERRY PRESIDENT & SEC/TRJIM PERRY PRESIDENT & SEC ACAS _ Print Name and Title RELEASE R-t R0"ROJECTSWW99199050905SPECS(Foe .919)JCD 0%X6 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF RIVERSIDE In 03/03/04 before me, PHYLLISSA G. MAYNOR - NOTARY PUBLIC ersonally appearedIINI PERRY personally known to me to be the person whose name is ubscribed to the within instrument and acknowledged to me that he executed the same in his uthorized capacities, and that by his signature on the instrument the person or the entity upon ehalf of which the person acted, executed the instrument. PHYWSSA G. MAYNOR Commudon#1770713 s Notary PubBc - C01110Mla s Rlverslde Carty My Cmmr. E i�Yas Ati011, �/ �.1 WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and :ould prevent fraudulent removal and reattachment of this form to another document. ion of Attached Document of Type of Document: ment Date: -------------------------------- Number of Pages: gner(s) Other Than Named Above: Claimed by Signer(s) gner's Name: lim Pew Individual Corporate Officer Title(s): PRESIDENT AND SECRETARY/TREASURER Partner Attorney -in Fact Trustee Guardian or Conservator Other: ner is Representing: DBX, INC. ITEM 14 APPROVAL. CITY ATTORNEY `1j�e' DIR.OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council -�n FROM: John Meyer, Director of Housing & RedevelopmenSt L DATE: March 16, 2004 SUBJECT: Payment of Property Taxes for Business Park Drive Property south of City Hall (APN 92-1-020-079-6) PREPARED BY: Peter Thorson, City Attorney RECOMMENDATION: That the City Council Ratify the payment of back property taxes on the Business Park Drive Property south of City Hall (APN 921-020-079-6) in the amount of $114,562.25. BACKGROUND: On May 15, 2003, the City was the successful bidder at the judicial foreclosure sale for the property south of City Hall, APN 921-020-079-6 ("Property') and paid $504,000.00 for the Property. The City will become the owner in fee on May 14, 2004, following the one year redemption period required by law. The City was informed by the Riverside County Treasurers Office that $125,793.08 in back property taxes are due on the Property as of March 12, 2004) and that a tax sale of the Property had been scheduled for March 15, 2004. The back property taxes were not deducted from the purchase price for the property collected by the Sheriffs Department at the time of the sale. The Riverside County Treasurer also informed the staff that he would accept the amount of $114.562.25 to be paid on or before March 15, 2004 to avoid the tax sale. This is the amount of property taxes due as of May 2003 when the City purchased the property at the judicial foreclosure sale. Attached is the March 2, 2004 correspondence from Treasurer Paul McDonnell and the March 2, 2004 correspondence from Melissa Johnson in the County's Tax Enforcement Unit. The County Counsel has taken the position that the City has no liability for these taxes and expected the tax sale to be cancelled. Beal Bank, the lender which initiated the judicial foreclosure action, disputed this position. In Closed Session the Council authorized the City staff to pay the property taxes due on this property in the event the County Treasurer did not take the Property off of the March 15, 2004 tax sale and the dispute was not resolved by that date. This action avoided the significant title problems which would have occurred had the property been sold at the tax sale prior to resolution' of the dispute. The City Attorney's Office will continue to pursue the City's remedies against the other parties. RJAgenda Reports/Payment of Property Taxes 3 16 FISCAL IMPACT: Adequate funds for this payment are available in the Maintenance Facility Expansion Project which is funded with Development Impact Fees -Corporate Facilities. ATTACHMENTS: Correspondence - Treasurer, Paul McDonnell Correspondence — County Tax Enforcement Unit, Melissa Johnson R:/Agenda Reports/Payment of Property Taxes 3 16 MAR-08-2004 11:16 FROM RWG OFFICERS PAUL MCDONNELL TREASURER OON KENT ASSISTANT TREASVRER SUE DAUER CHIEF DEPUTY March 2, 2004 PAUL MCDONNELL TREASURER TO 19096933903# P.04/05 OFFICERS JON CHRISTENSEN CHIEF DEPUTY GARY COTTERILL CHIEF DEPUTY TOM MULLEN CHIEF DEPUTY Bruce Galloway FAX (213) 626-0078 Richard Swanson anal Gershon 355 S. Grand Ave. 4Ad'Floor Los Angeles, California 90071-3101 RE: Delinquent Ad Valorem Taxes APN 921-020-079-6 Dear Mr. Galloway: On or about May 15, 2003 the Riverside County Sheriff conducted a foreclosure sale of the afore -mentioned real property pursuant to a Judgment of Foreclosure by Beal Bank, a Texas Banking Corporation. The real property was purchased by the City of Temecula. At the time of the foreclosure sale the real property was subject to delinquent ad valorem taxes. The real property is presently on the Riverside County Tax Sale scheduled for March 15, 2004. I have been advised by counsel that the City of Temecula is ready to pay the delinquent taxes in the amount of $114,562.25. This constitutes the taxes due as of May 2003. Upon receipt of said sum, prior to the March 15, 2004 tax sale the real property will be removed from the taK sale and the remaining taxes canceled. This amount constitutes the full amount of taxes due on the subject property from the City of Temecula. Please direct your payment to the Riverside County Tax Collector to the attention of Melissa Johnson, Staff Analyst II at P.O. Box 12005, Riverside, Ca 92502-2205. if you send the payment over night please use our physical address which is 4080 Lemon St., Riverside, Ca 92501.3660, If you have any questions you can contact Ms. Johnson at Paul McDonnell Treasurer -Tax Collector Attachment Certified Statement of Delinquent Taxes RIVERSIDE COUNTY TREASURER 4000 LEMON STRCET. 4TH FLOOR * P.O. BOX 12005 * RIVERSIDE, CALIFORNIA 92502 W V.COUNMREASURER.ORO * (9091 9S5.9000 + 17661 963.ROnn 1 c�v m.w. eca.en, MAR-08-2004 11:18 FROM RWG OFFICERS PAUL MCDONNE4L TRCASURCR DON KENT ASSISTANT TREASURER SVE SAVER CHIEF DEPUTY March 2, 2004 Bruce Galloway Richard Swanson and Gershon 355 S. Grand Ave. 406'Floor Los Angeles, Ca 90071-3101 Re: 921020079-6 Dear Mr. Galloway: TO V PAUL MCDONNELL TREASURER P.05/05 OFFICERS JON CHRISTENSEN CHIEF DEPUTY GARY COTTCRILL CHIEF DEPUTY TOM MULLEN CHIEF DEPUTY Parcel number 9210:10079-6 has delinquent taxes for the fiscal years 1997-98 through 2002-03. The total amount due for the delinquent taxes as of May 2003 was $114,562,25. Sincerely, Melissa Johnson Staff Analyst H Tax Enforcement Unit (909) 955-3949 &J"ofCamino ) as cIAm a Rw&* I 1B HEREBY CERTIFY VIS MISE a fUA EIW car"Idoom of ft ISE ROold dow,ted " OM un11L111a on ak N ra omm End of *t1k l I ant 100 DM061 1- a Wiled t� Ma PAUMk0 MNEL#�TptAASLWE�R•TA1( IG�OLL60FOR RIVERSIDE COUNTY TREASURER 4000 LEMON STREET, 4TH FLOOR R P.O. BOX 12005 # RIVERSIDE, CALIFORNIA 92502 ITEM 15 APPROVAL CITY ATTORNEY DIR.OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Council FROM: Genie Roberts, Director of Finance OR DATE: March 16, 2004 P►`� SUBJECT: Revised Deposit Agreement — Proposed Roripaugh Ranch Community Facilities District RECOMMENDATION: That the City Council adopt the resolution entitled: RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF: TEMECULA APPROVING AMENDED AND RESTATED DEPOSIT/REIMBURSEMENT AGREEMENT — RORIPAUGH RANCH BACKGROUND: Ashby USA, LLC (the "Developer") has requested that the Temecula Public Financing Authority (the "Authority') form a community facilities district (the "CFD") to finance public improvements in the Roripaugh Ranch area of the City of Temecula (the "City'), and in 2001 the Developer, the City, the Authority and Calloway 220, LLC (an entity previously interested in the formation of the CFD), entered into a Deposit/Reimbursement Agreement (the "2001 Agreement") pursuant to which the Developer and Calloway 220, LLC agreed to pay the costs of the City and the Authority in connection with the establishment of the Authority and the formation of and issuance of bonds for the CFD. Since the execution of the 2001 Agreement, Calloway 220, LLC is no longer interested in the formation of the CFD, and the costs to be paid by the Developer have been increased. Bond Counsel has provided an Amended and Restated Deposit/Reimbursement Agreement (the "Amended Agreement') to reflect the changed circumstances and City Staff recommend its approval by the City Council and the Board of Directors of the Authority. FISCAL IMPACT: The Developer has agreed to pay the costs of the City and the Authority related to the formation of the CFD from deposits as requested by the City, and if funds are not advanced when requested by the Director of Finance, the City Manager may direct Staff to cease activities to be funded by the Developer under the Amended Agreement. Attachment: Resolution No. 04- Amended and Restated Deposit/Reimbursement Agreement RESOLUTION NO. 04—_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING AMENDED AND RESTATED DEPOSIT/REIMBURSEMENT AGREEMENT — RORIPAUGH RANCH WHEREAS, in 2001, the City of Temecula (the "City"), the Temecula Public Financing Authority (the "Authority"), Ashby USA, LLC ("Ashby') and Calloway 220, LLC ("Calloway'), entered into a Deposit'Reimbursement Agreement (the "Original Agreement'), pursuant to which Ashby and Calloway deposited funds with the City to ensure payment of the costs of the Authority and the City in forming the Authority and a proposed community facilities district, and otherwise in connection with the issuance of bonds for such community facilities district (the 'Initial Costs'); and WHEREAS, since the execution of the Original Agreement by the parties thereto, Calloway no longer owns property in the proposed community facilities district and the Initial Costs have been in excess of the amount previously expected; and WHEREAS, the parties to the Original Agreement now desire to amend and restate the Original Agreement to reflect the current understanding of the parties thereto with respect to, among other matters, the continued advancement of funds necessary to pay the Initial Costs, and there is on file with the City Clerk a form of Amended and Restated Deposit/Reimbursemenl: Agreement (the "Deposit Agreement') which the City Council now desires to approve. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as follows: Section 1. Deposit Agreement. The City Council hereby approves the Deposit Agreement, and authorizes the City Manager to execute the Deposit Agreement, in the form on file with the City Clerk together with such changes as deemed advisable by the City Attorney. The Director of Finance is hereby authorized and directed to accept and use the Deposits in the manner described in the: Deposit Agreement. Section 2. Official Actions. The Mayor, City Manager, Director of Finance, 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 with respect to the implementation of the Deposit Agreement, including the execution and delivery of any and all documents required thereunder. PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula at a regular meeting held on the 16th day of March, 2004. Michael S. Naggar, 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 regular meeting of the City Council of the City of Temecula on the 16th day of March, 2004, by the following roll call vote: AYES: COUNCILMEMBERS: NAYS: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAINED: COUNCILMEMBERS: Susan W. Jones, CMC, City Clerk 2 AMENDED AND RESTATED DEPOSITIREIMBURSEMENT AGREEMENT Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) THIS AMENDED AND RESTATED DEPOSIT/REIMBURSEMENT AGREEMENT (the "Agreement") is by and among the City of Temecula (the "City"), the Temecula Public Financing Authority (the "Authority") for itself and on behalf of the proposed Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) (the "CFD"), Ashby USA, LLC ("Ashby") and Calloway 220, LLC ("Calloway" and, together with Ashby, the "Developers"). RECITALS: WHEREAS, in 2001, the City, the Authority (for itself and on behalf of the proposed CID) and the Developers entered into a Deposit/Reimbursement Agreement (the "Original Agreement'), pursuant to which the Developers deposited funds with the City to ensure payment of the costs of the Authority and the City in forming the Authority and the CFD, and otherwise in connection with the issuance of bonds (the "Bonds") for the CFD and the proposed expenditure of the proceeds thereof, which Original Agreement provided that the funds so advanced were to be reimbursed to the Developers from the proceeds of any Bonds issued by the Authority for the CID to the extent provided therein; and WHEREAS, since the parties hereto entered into the Original Agreement, the name of the CFD has changed from "Temecula Public Financing Authority Community Facilities District No. 01-1 (Butterfield Stage Road)" to "Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch)," and Calloway no longer owns property within the proposed boundaries of the CFD; and WHEREAS, the Initial Costs (as defined in the Original Agreement) have been in excess of the amounts expected. at the time of execution of the Original Agreement; and WHEREAS, in light of the foregoing, the parties to the Original Agreement now desire to amend and restate the Original Agreement as provided herein, in order to cause the written agreement among the parties to the Original Agreement to reflect the current understanding of the parties thereto as to the continued advancement of funds necessary to pay the Initial Costs, and the prospective reimbursement of amounts advanced by the Developers with proceeds of the Bonds, if any Bonds are issued by the Authority for the CFD. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth herein, and for other consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree that the operative provisions of the Original Agreement shall be amended and restated as follows: Section 1. The 12evosits. In 2001, Ashby provided to the City $113,500 and Calloway provided to the City $18,500 (collectively, the "2001 Deposits"), to be used by the City to pay the costs in conducting proceedings for the formation of the Authority and the CFD, and for the issuance of bonds for the CFD (as more fully described in Section 2(a) below, the 'Initial Costs").Subsequently, Ashby has provided to the City additional deposits of $68,000 and $70,000 for such purposes collectively, the "Ashby Deposits"). The City, by its execution hereof, acknowledges receipt by the City of the 2001 Deposits and the Ashby Deposits. The checks representing the 2001 Deposits have been cashed by the City, and the 2001 Deposits and the Ashby Deposits were commingled with other funds of the City for purposes of investment and safekeeping; however, the City at all times has maintained records as to the expenditure of the 2001 Deposits and the Ashby Deposits. Ashby hereby agrees to advance any additional amounts necessary to pay any Initial Costs incurred by the City or the Authority, in excess of the amount of the 2001 Deposits and the Ashby Deposits, promptly upon written demand therefore by the Director of Finance of the City; (the "Additional Deposits" and, collectively with the 2001 Deposits and the Ashby Deposits, the "Deposits"). Notwithstanding any other provision of this Agreement, the City Manager may direct City and Authority staff and consultants to cease all work related to the issuance of the Bonds and/or the formation of the CFD until any additional amount so demanded has been rec:ived by the City. Section 2. Use of Funds. The Deposits shall be administered as follows: (a) The Director of Finance of the City may draw upon the Deposits from time to time to pay the Initial Costs, including but not limited to: (i) the fees and expenses of any consultants to the City or the Authority employed in connection with the issuance of the Bonds and the proposed expenditure of the proceeds thereof (such as engineering, legal counsel, including the City Attorney, Bond Counsel and financing and special tax consultants); (ii) the costs of appraisals, market absorption and feasibility studies and other reports necessary or deemed advisable by City staff or consultants in connection with the Bonds; (iii) costs of publication of notices, preparation and mailing of ballots and other costs related to any election with respect to the CFD, the rate and method of apportionment of the special taxes to be levied therein and any bonded indebtedness thereof; (iv) a reasonable charge for City staff time, as determined by the City Manager in his sole discretion, in analyzing the CFD, the Bonds and the expenditure of the proceeds thereof, including a reasonable allocation of City overhead expense related thereto; and (v) any and all other actual costs and expenses incurred by the City or the Authority with respect to the CFD or the Bonds after the date of execution of this Agreement. The Developers hereby acknowledge that, at a minimum, the following amounts will or may be charged against the Deposits, whether or not the CFD is formed and the Bonds are issued: (i) $75,000.00 to David Taussig and Associates, Inc., special tax consultant, (ii) at least $30,000.00 to an appraiser, (iii) at least $12,000.00 to Richards, Watson & Gershon, City Attorney and general counsel to the Authorit,�, (iv) $22,000.00 for a market absorption analysis related to the CFD, (v) $65,000.00 to Fieldman, Rolapp & Associates for financial advisory services, (vi) $70,000.00 to Albert A. Webb Associates for engineering services related to the facilities proposed to be financed by the CFD, and (vii) at least $25,000.00 to the City for City Staff time in analyzing the -2- CID, the Bonds and the expenditure of the proceeds thereof, including a reasonable allocation of City overhead expense related thereto, including all other actual costs and expenses incurred by the City. Draws on the Deposits shall first be charged to the 2001 Deposits, and when the 2001 Deposits have been fully expended, then to the Ashby Deposits, and when the 2001 Deposits and the Ashby Deposits have been fully expanded, then to any Additional Deposits. (b) If the Bonds are issued under the Mello -Ross Community Facilities Act of 1982, as amended (the "Act") by the Authority secured by special taxes levied upon the land within the CFD, the Authority shall provide for reimbursement to the Developers, without interest, of all amounts charged against the Deposits, said reimbursement to be made solely from the proceeds of the Bonds and only to the extent otherwise permitted under the Act. On or within ten (10) business days after the date of issuance and delivery of the Bonds, the Director of Finance of the City shall return the then unexpended Deposits to the Developers, without interest, less an amount equal to any costs incurred by the City or the Authority or that the City or the Authority is otherwise committed to pay, which costs would be subject to payment under Section 2(a) above, but have not yet been so paid. (c) If the Bonds are not issued, the Director of Finance of the City shall, within ten (10) business days after adoption of the resolution stating the intent of the Authority to terminate proceedings under the Act with respect to the issuance of the Bonds, return the then unexpended Deposits to the Developers, without interest, less an amount equal to any costs incurred by the City or the Authority or that the City or the Authority is otherwise committed to pay, which costs would be subject to payment under Section 2(a) above but have not yet been so paid. (d) In the event that all or any portion of the Deposits drawn upon in accordance with Section 2(a) are reimbursed with proceeds of Bonds (as described in Section 2(b)), or any portion of any unexpended Deposits are otherwise returned to the Developers (as described in Section 2(b) or 2(c)), the amount so reimbursed or returned shall be applied first against any Additional Deposits advanced by Ashby and against the Ashby Deposits until the amount of any such Additional Deposits and the amount of the Ashby Deposits have been fully returned or reimbursed, as applicable; and then against the 2001 Deposits, 86% to Ashby and 14% to Calloway. Section 3. Reimbursement of Other Developer Costs. Nothing contained herein shall prohibit reimbursement of other costs and expenses of Ashby or any successor in interest thereto with respect to the land in the CFD incurred in connection with the CFD from the proceeds of the Bonds, including, but not limited to fees and expenses of legal counsel to Ashby and/or any of its successors in interest and special consultant expenses. Any such reimbursement shall be made (a) solely from the proceeds of the Bonds, (b) only to the extent otherwise permitted under the Act, (c) if the Bond issue already includes full reimbursement of all amounts charged against the Deposits, and (d) only if otherwise provided for, at the reasonable discretion of the Authority, in the proceedings for the issuance of the Bonds. Section 4. A&I•eement Not Debt or Liability of City or Authority. It is hereby acknowledged and agreed that this Agreement is not a debt or liability of the City or the Authority, as provided ;in Section 53314.9(b) of the Act. Neither the City nor the Authority shall in any event be liable hereunder other than to return the unexpended and uncommitted Ed portions of the Deposits as provided in Section 2 above and provide an accounting under Section 7 below. Neither the City nor the Authority shall be obligated to advance any of their own funds with respect to the CFD or for any of the other purposes listed in Section 2(a) hereof. No member of the City Council, the Board of Directors of the Authority or officer, employee or agent of the City or the Authority shall to any extent be personally liable hereunder. Section 5. No Obli¢ation to Issue Bonds. The provisions of this Agreement shall in no way obligate the City or the Authority to issue any bonds, or to expend any of their own funds in connection with the CFD. Section 6. Severability. 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 7. Accotm ng. The City Director of Finance shall provide the Developers with a written accounting of moneys expended under this Agreement, within ten (10) business days of receipt by the Director of Finance of the City of a written request therefor submitted by an authorized officer of a Developer. No more than one accounting will be provided in any calendar month and the cost of providing the accounting shall be charged to the Deposits. Section 8. Mult-Ae Bond Issues. In the event that the Authority determines to issue more than one series of the Bonds (due to the establishment of improvement areas within the CFD or otherwise), or if the Authority determines to establish a second community facilities district which includes land originally contemplated to be included in the CFD and determines to issue bonds for such second community facilities district, any portion of the Deposits not reimbursed from the first issue of Bonds shall be reimbursed, without interest, from any such other issue of Bonds of the CID or of bonds of such second community facilities district; but in any event only to the extent such reimbursement is permitted under the Act. Section 9. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. Section 10. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. -4- Section 11. final Agreement Superseded. This Agreement supersedes in its entirety the Original Agreement. Upon execution of this Agreement by all of the parties hereto, the Original Agreement shall be deemed terminated. IN WITNESS THEREOF, the parties hereto have executed this Agreement as of the day and year written alongside their signature line below. Executed on: March _, 2004 Executed on: March _, 2004 Executed on: March 2004 Executed on: March 2004 DEVELOPERS: ASHBY USA, LLC, a limited liability company By: Ashby Development Company, Inc., a California corporation, Managing Member 0 Justin K. Ashby, Vice President By: USA Investment Partners, LLC, a Nevada limited liability company, Member a Joseph D. Milanowski Its: CALLOWAY 220, LLC By: Its: CITY: CITY OF TEMECULA 0 City Manager AUTHORITY: TEMECULA PUBLIC FINANCING AUTHORITY, for itself and on behalf of the proposed Temecula Public Financing Authority Community Facilities District 03-02 (Roripaugh Ranch) By: Executive Director -5- TEMECULA COMMUNITY SERVICES DISTRICT ITEM 1 MINUTES OF A REGULAR MEETING OF THE TEMECULA COMMUNITY SERVICES DISTRICT FEBRUARY 24, 2004 A regular meeting of they City of Temecula Community Services District was called to order at 7:48 P.M., at the City Council Chambers, 43200 Business Park Drive, Temecula, California. ROLL CALL PRESENT: 4 DIRECTORS: Comerchero, Naggar, Roberts, and Washington ABSENT: 1 DIRECTORS: Stone Also present were General Manager Nelson, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No comments. CONSENT CALENDAR Minutes RECOMMENDATION: 1.1 Approve the minutes of February 10, 2004. 2 Approval of 200:3-04 Mid -Year Budget Adjustments RECOMMENDATION: 2.1 Adopt a resolution entitled: RESOLUTION NO. CSD 04-03 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT AMENDING THE FISCAL YEAR 2003-04 ANNUAL OPERATING BUDGETS 3 Amendment No. 2 to the License Agreement with the Temecula Valley Museum. Inc. =616lMIT, L�1I7tiir["k 3.1 Approve Amendment No. 2 to the License Agreement between the Temecula Community Services District and the Temecula Valley Museum, Inc. (TVMI) for use operation of the museum gift shop and wedding chapel. Minutes.esd\022404 MOTION: Director Comerchero moved to approve Consent Calendar Items No. 1-3. The motion was second by Director Naggar and electronic vote reflected approval, with the exception of Directors Roberts who abstained on Item No. 1 and Director Stone, who was absent. DEPARTMENTAL REPORT No additional comments. DIRECTOR OF COMMUNITY SERVICES REPORT No additional comments. GENERAL MANAGER"S REPORT No additional comments. BOARD OF DIRECTORS' REPORTS No additional comments. ADJOURNMENT At 7:49 P.M., the Temecula Community Services District meeting was formally adjourned to Tuesday, March 16, 2004, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. Chuck Washington, President ATTEST: Susan W. Jones, CIVIC City Clerk/District Secretary [SEAL] Minutes.csd\022404 2 ITEM 2 CITY ATTORNEY DIRECTOR OF Fill' CITY MANAGER TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman Parker, Director of Community Services William G. Hughes, Director of Public Works/City Engineer DATE: March 16, 2004 SUBJECT: Completion and Acceptance of "Children's Museum Building Shell Improvements", Project No. PW02-01CSD PREPARED BY: Amer Attar, Principal Engineer Brian Guillot, Assistant Engineer RECOMMENDATION: That the Board of Directors: Accept the construction of "Children's Museum Building Shell Improvements", Project No. PW02-01 CSD, as complete and direct the City Clerk to: 2. File the Notice of Completion, release the Performance Bond and accept a one (1) year Maintenance Bond in the amount of 10% of the contract, and; 3. Release the Materials and Labor Bond seven (7) months after the filing of the Notice of Completion if no liens have been filed. BACKGROUND: On September 17, 2002, the Board of Directors awarded a construction contact for Project No. PW02-01 CSD Children's Museum Building Shell Improvements, to R.E. Fleming Construction, Inc. in the amount of $347,881.00. The improvements consisted of modifications to the architecture of the building, structural modifications, mechanical, electrical, and plumbing system modifications to prepare the building shell for use as a public building and the installation of the museum exhibits. The work included the replacement of the roof and certain offsite improvements such as removal and replacement of the drive approach. During the course of construction, structural problems were encountered requiring major repairs to the building shell. A structural engineer prepared drawings and the Board awarded an additional contract on ,January 28, 2003, to another contractor to complete those repairs. This problem resulted in significant delays to the project. On September 23, 2003, the Board released the retention to R.E. Fleming Construction, Inc. with the assurance that they would complete the items remaining in the contract. The Contractor has now completed the work in accordance with the approved plans and specifications to the satisfaction of the Director of Public Works/City Engineer. All work shall be warranted for a period of one (1) year from the date of acceptance by the City. rAAGENDA REPORTS/2004/021004/PW02-13 Rancho Ca Acceptance FISCAL IMPACT: The Children's Museum Building Shell Improvements is a Capital Improvement Project funded through Capital Project Reserves, Proposition 12 (State Urban Centers/Education Grant; and the Redevelopment Agency. Eight (8) contract change orders were issued for a total of $82,723.98. The final amount of the contract is $430,604.98. ATTACHMENTS: 1. Notice of Completion 2. Maintenance Bond 3. Contractor's Affidavit r: W GENDA REPORTS/2004/021004/PW02-13 Rancho Ca A=pWa RECORDING REQUESTED BY AND RETURN TO: CITY CLERK CITY OF TEMECULA P.O. Box 9033 43200 Business Park Drive Temecula, CA 92589-9033 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT: 1. The City of Temecula is the owner of the property hereinafter described. Nature of Interest Vendee Under Contract. 2. The full address of the City of Temecula is 43200 Business Park Drive, Temecula, California 92590. 3. A Contract was awarded by the City of Temecula to R.E. Fleming Construction Inc., 15415 Bear Valley Rd., Hesperia, CA 92345 to perform the following work of improvement: CHILDIREN'S MUSEUM BUILDING SHELL IMPROVEMENTS Project No, PW02-01CSD 4. Said work was completed by said company according to plans and specifications and to the satisfaction of the Director of Public Works of the City of Temecula and that said work was accepted by the City Council of the City of Temecula at a regular meeting thereof held on March 16, 2004. That upon said contract the First National Insurance Company of America was surety for the bond given by the said company as required by law. 5. The property on which said work of improvement was completed is in the City of Temecula, County of Riverside, State of California, and is described as follows: Children's Museum Building Shell Improvements PW02-01 CSD 6. The location of said property is: 42081 Main Street, Temecula, California Dated at Temecula, California, this 16`h day of March, 2004 City of Temecula Susan W. Jones CMC, City Clerk STATE OF CALIFORNIA I COUNTY OF RIVERSIDE I ss CITY OF TEMECULA I I, Susan W. Jones CMC, City Clerk of the City of Temecula, California and do hereby certify under penalty of perjury, that the foregoing NOTICE OF COMPLETION is true and correct, and that said NOTICE OF COMPLETION was duly and regularly ordered to be recorded in the Office of the County Recorder of Riverside by said City Council. Dated at Temecula, California, this 16' day of March, 2004. City of Temecula Susan W. Jones CMC, City Clerk R:\CI%PR0JECTS\M02\M02-0l Child Museum\COMPLETION NOTE.doc Bond# 6169923-M CITY OF TEMECULA, PU13UC WORKS DEPARTMENT MAINTENANCE BOND l �ffOC71=L"P7V r3:'P"VYlf2� 9 f�15 CHILDREN'S MUSEUM BUILDING SH@L'L IMPROVEMENTS KNOW ALL PERSONS BY THESE PRESENT THAT: R.E. 15415 Bear Rd., Hesperia CA 92345 a Cor oration hereinafter caged Prinolpal, and (Ieb MwlNracow" m. pe,m"T aek_tiwj — First National Insurance C?,ppany of America 2677 N. Main St., Santa Ana, CA 92705 NAM E'AND ADDRESS OFSURETI' — her9inafter caged SURETY are heWe flifnly bound unto *¢ITY OF TEMECULA, hereinafter calledom OWNK17. in the arini Rum bf �'PV Pigh t- —DQL .:T1�irty four thousand seven. hundred Sand- An CENTS (t:_3d, 7AA n 1 In Iawlul mona of the'United States, said sum being not less than ten (101/6) of the Contract value payable by the" said City of Temecula under the te6ris'y3r- the Contract, for the payrnent of bind sevataliy,lllmfy, by thane presents. which., we ourselves, successors, and assigns, jointly and THE CONDITION OF THIS 06U61ATION is such that whereas, the Principal entered Into a certain-ContraetwghtheOWNER. 3511edthii 17th dayorSeptemb_er 2002 a copy of which Is hereto attached and made a part hereof for the construction of PROJECT NO. PW02- 01CSD, CHILDREN'S MUSEUM BUILDING SHELL IMPROVEMENTS. WHEREAS, said Contract provides that the principal will furnish a bond conditioned to guaruntae for the period of 9RO (1) yehr after approval of the final estimate on said job, by the OWNER, against all defeots.ln wortvnanship and materials which may become apparent during said period; and WHEREAS, the said Contract has been completed, and the final estimate was approved on June _6 t 120 113 _ NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that If within one year from the date 0 appfeval of the final 09fimAte on said job.pursuant to the Contract, the work done under the terms of said Contract shall disclose poor Workmanship in the execution of said work, at ck)fective materials were i furnished hed thereunder, d the cut ( the tenne. of then this obi atop shalltre niainhin fuall ll forceandand virtue, otherwise this instrument shall be void. a part of the obligation secured hereby and In addition to the face amount specified, costs and sortable expenses and fees shall be inchjdect inolulffn-9 neal;Qtlable attameys' fees Incurred by W a>1�0rPSUWM mcm,a the i as L- � R -Ibis-obllgauon,.nll to be #axed as coats and r y )udgttiEnl' rendered The Surety hereby supul+ates and a to the temps Of the Contact, or to the w rk to bg purtrxmed thereunder, cu to the S ' or addition a000mpenyittq the same shall,f. R 9a peoifi ations waive nouce of nay wpy,affeot,ne''till uo' on this bond and it does hereby ary'rk, o otothe S extension ot'tiine;'aftaretton, or addition to the terms of the Contract, or to .ute Work, or to the Suttcifloaticne, Signed and sealed MiS T 9 th _ day of February zu 04 (seal) First National Insuranc( SURM Company of America Matthew R Dobvns (Name) (Title) nttnrnPv_in F-r-L�_ OPROVED AS TO FORAJ: Peter K Thorson. City Attorna 14 pAIW�. Fleming Construction, Inc. By., (Name NA,eSz cord (Tltla) (Name) �(Titlo) 0.�p�01CSCYM S7A7F-OF Californda e I Oran SS. ('O(/NTYOI% g ON-719104 beforea,e, Nary Hart ignoni — Notary Public PERSONALLYAPPLARED Matthew R. personally ka N,n to me JUIZIEW a) be the personM (vho:Ie natne(14 is•AMubscribed to the within instrument and acknowledged Wine that he/itIUM ereculed the saute in hiss- mtdutrized cryn c•it)(Mand daa by hivjouum signatoe(.1gon die instnantent the person('sl( or the entity upon behalf nl4hich the personal acted, eretuted the instruutenl. IV/TNESS ay Iran/ and q(licial seal. Signnna 1 MARY MARTIGGI 1 COMM. #1438392 n NOTARY RMIC-MIFORMAORAHM COUNTY 7� My Cantu E4. 8ep19m07 This area for Official Notarial Sent OPTIONAL Though the data below is not required by law, It may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ® ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: DESCRIPTION OF ATTACHED DOCUMENT TITLE OF TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT NAME OF PEASON(S) ON ENTINtIES( First National Insurance Company of America ALL-PURPOSE ACKNOWLEDGEMENT POWER FIRST NATIONAL INSURANCE COMPANY OF AMERICA 4333 BROOKLYN AVE NE OF ATTORNEY SEATTLLE, WASHINGTON 98105 4333 Brooklyn Avenue N.C. Seattle, WA 98105 No. 10202 KNOW ALL BY THESE PRESENTS: That FIRST NATIONAL INSURANCE COMPANY OF AMERICA, a Washington corporation, does hereby appoint uu....rru..e...............................u.... I ......... MAFI111iW It. DOBYNS; Fullcoon, C0liIhniu•...........u.................wo..........wu... Its We and lawful altorney(s}in-rack With full authodty to execute on behalf of the company fidelity and surety bonds "undertakings and other documents of a similar character Issued by the company in the course of its business, and to bind FIRST NATIONAL INSURANCE COMPANY OF AMERICA thereby as fully as If such Instruments had been duly executed by its regularly elected offu:ers at Its home office. IN WITNESS WHEREOF, FIRST NATIONAL INSURANCE COMPANY OF AMERICA has executed and attested these presents this 3rd day of June , 1999 sow- - V&L&-4/U R.A. PIERSON. SECRETARY W. RANDALL STODDARD, PRESIDENT CERTIFICATE Extract from the By -Laws of FIRST NATIONAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety opera ions, shall each have authority to appoint individuals as aflomeys-in-fad or under other appropriate 011es with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company In the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsmile thereof, may be Impressed or affixed or in any other manner reproduced; provided, however, that the seat shall not be necessary to the validity of any such instrument or undertaking" Extract from a Resolution of the Board of Directors of FIRST NATIONAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, (i) The provisions of Article V, Section 13 of the By -Laws, and (ii) A copy of tholoower-of-altomey app)intment, executed pursuant thereto, and hii) Certifying that said power-of-ahomer appointment is in full force and effect, the signature of the certifying officer maybe by f acsimile, and the seal of the Company may be a facsimile thereof." 1, R.A. Pierson, Secretary of FIRST NATIONAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws- and of a Resolution of the Board of Directors of [his corporation, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Paver of Attorney are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation SEAL 1928 this 9th dayof February 2004 RA. PIERSON, SECRETARY S 10491FNEF 7198 eInN9 PnF r CITYOF TEMECULA, PUBLIC WORKS DEPARTMEN FEB 1.1 2004 CONTRACTOR'S AFFIDAVIT AND FINAL RELEASE CITY OFTEMECULA PROJECT NO. PW02-01 CSD CHILDAEN'S MUSEUM BUILDING SHELL IMPROVEMENTS This is to certify that 6Q C. r/e i.-/W- c'o%A-. rd4hereinafter the "CONTRACTOR") declares to the City of Temecula, under oath, that he/she/it has paid in full for all materials, supplies, labor, services, tools, equipment, and all other bills contracted for by the CONTRACTOR or by any of the CONTRACTOR's agents, employees or subcontractors used or in contribution to the execution of it's contract with the City of Temecula, with regard to the building, erection, construction, or repair of that certain work of improvement known as PROJECT NO. PW02- 01CSD, CHILDREN'S MUSEUM BUILDING SHELL IMPROVEMENTS, situated in the City of Temecula, State of California, more particularly described as follows: INSERT' HERE The CONTRACTOR declares that it knows of no unpaid debts or claims arising out of said Contract which would constitute grounds for any third party to claim a Stop Notice against of any unpaid sums owing to the CONTRACTOR. Further, in connection with the final payment of the Contract, the CONTRACTOR hereby disputes the following amounts: Description Dollar Amount to Dispute Pursuant to Public Contract Code §7100, the CONTRACTOR does hereby fully release and acquit the City of Temecula and all agents and employees of the City, and each of them, from any and all claims, debts, demands, or cause of action which exist or might exist in favor of the CONTRACTOR by reason of payment by the City of Temecula of any contract amount which the CONTRACTOR has not disputed above. CONTRACTOR Dated: C; '"e y _,,J)& By: ignat re 0-eILz Print Name and Title RELEASE R-1 MGIPPF0JECT"W02PM2-01 ChDd MuseurrWS&EMM-01CM.do1 REDEVELOPMENT AGENCY ITEM 1 MINUTES OF A REGULAR MEETING OF THE TEMECULA REDEVELOPMENT AGENCY FEBRUARY 24, 2004 A regular meeting of they City of Temecula Redevelopment Agency was called to order at 7:49 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula. ROLL CALL PRESENT: 4 AGENCY MEMBERS: Naggar, Roberts, Washington, and Comerchero ABSENT: 1 AGENCY MEMBERS: Stone Also present were Executive Director Nelson, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No input. CONSENT CALENDAR 1 Minutes RECOMMENDATION: 1.1 Approve the minutes of February 10, 2004. 2 Approval of the 2003-04 Mid -Year Budget Adjustments RECOMMENDATION: 2.1 Adopt a resolution entitled: RESOLUTION NO. RDA 04-04 A RESOLUTION OF THE TEMECULA REDEVELOPMENT AGENCY AMENDING THE FISCAL YEAR 2003-04 ANNUAL OPERATING BUDGET 3 Quitclaim Deed from the Redevelopment Agency to the City of Temecula (APN 921-020- Q§lL- Removed from the Consent Calendar for separate action; see page 2. RECOMMENDATION: 3.1 Approve the conveyance of the portion of land necessary for the construction of Fourth Street and execute the Quitclaim Deed, conveying the land from the Redevelopment Agency to the City of Temecula. RAMinutes. rda\022404 MOTION: Agency Member Naggar moved to approve Consent Calendar Item Nos. 1 and 2 (Item No. 3 was pulled for separate discussion; see below). The motion was seconded by Agency Member Washington and electronic vote reflected approval, with the exception of Agency Members Roberts who abstained on Item No. 1 and Agency Member Stone who was absent. CONSENT CALENDAR ITEM CONSIDERED UNDER SEPARATE DISCUSSION 3 Quitclaim Deed from the Redevelopment Agency to the City of Temecula (APN 921-0207 08 RECOMMENDATION: 3.1 Approve the conveyance of the portion of land necessary for the construction of Fourth Street and execute the Quitclaim Deed, conveying the land from the Redevelopment Agency to the City of Temecula. Redevelopment Director Meyer presented the staff report, explaining this property is currently owned by the Redevelopment Agency and needs to be transferred to the City of Temecula for use as public right -of -wary. Ms. Nancy Baron, 28681 Pujol Street, requested clarification on the location of this property. Clarifying the location, Mr. Meyer explained the property is located on the west side of Front Street and is a portion of Fourth Street that is currently vacated. MOTION: Agency Member Washington moved to approve Item No 3. The motion was seconded by Agency Member Naggar and electronic vote reflected unanimous approval, with the exception of Agency Member Stone, who was absent. EXECUTIVE DIRECTOR'S REPORT No comment. AGENCY MEMBERS' REPORTS No comments. ADJOURNMENT At 7:53 P.M., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, March 16, 2004 in the City Council Chambers, 43200 Business Park Drive, Temecula, California. Jeff Comerchero, Chairman ATTEST: Susan W. Jones, CIVIC City Clerk/Agency Secretary [SEAL] R: W inutes.rda\022404 ITEM 2 APPROVAL CITY ATTORNEY FINANCE OFFICE CITY MANAGER CITY OF TEMECULA/TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT DATE: March 16, 2004 TO: City Manager/Council members Executive Director/Agency Members FROM: John Meyer, Redevelopment Director N�k SUBJECT: Disposition and Development Agreement and Focused Environmental Impact Report for the Temecula Education Center. RECOMMENDATION: It is recommended that the Redevelopment Agency and the City Council approve the following Resolutions: That the City Council Adopt a Resolution entitled: RESOLUTION NO. 04 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE TEMECULA EDUCATIONAL COMPLEX PROJECT, THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND AGK GROUP, LLC. FOR THE DEVELOPMENT OF THE TEMECULA EDUCATIONAL COMPLEX, AND RELATED ACTIONS, AND ADOPTING FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, APPROVING A STATEMENT OF OVERRIDING CONSIDERATIONS, AND APPROVING A MITIGATION MONITORING AND REPORTING PROGRAM IN CONNECTION THEREWITH FOR THE TEMECULA EDUCATIONAL COMPLEX TO BE DEVELOPED ON APPROXIMATELY 31.1 ACRES OF PROPERTY LOCATED AT THE NORTHWESTERN CORNER OF DIAZ ROAD AND DENDY LANE 2. That the City Council Adopt a Resolution entitled: RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND A13K GROUP, LLC, FOR THE TEMECULA EDUCATIONAL COMPLEX R:tEducationcomplexUDA Staff Report.doc 3. That the Redevelopment Agency of the City of Temecula Adopt a Resolution entitled: RESOLUTION NO. RDA 04 - A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF' TEMECULA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULAAND AGK GROUP, LLC, FOR THE TEMECULA EDUCATIONAL COMPLEX BACKGROUND: On June 25, 2003, the Agency entered into an Exclusive Negotiating Agreement (ENA) with the AGK Group, LLC to pursue the development of a mixed use development incorporating affordable housing, higher education and retail. During the course of the ENA, the AGK Group (Developer) has pursued the development of the Temecula Education Center. The Agency and the Developer have worked with representatives of Mount San Jacinto Community College (Mount San Jacinto), Cal State San Marcos (San Marcos) and University of California, Riverside Extension (UCR), and representatives from the business community including Guidant and Southwest Healthcare Systems. Through the ENA process, Mr. Kading and his team have developed a conceptual site plan, received letters of interest from the three academic partners and several letters of interest from commercial and retail entities as well as financial institutions. Project Description The proposed project is located on a 31 acre site at the northwest corner of Diaz Road and Dendy Lane. The project is proposed to be developed in two or more phases as follows: Phase 1 273 Mixed Income Apartments (50 reserved for Affordable Housing) • 69,600 sq. ft. East Educational Tower and Core Tower • 14,500 sq. ft. Retail Space Phase 2 • 57,600 sq 12,000 sq 16,000 sq • 10,000 sq 12 Lofts o 23,000 sq • Grass Am ft. West Educational Tower ft. Retail Space ft. Research and Design Building ft. Day Care Facility +er 20,000 sq. ft. Retail Space ft. Conference Center phitheater Each phase includes sufficient parking to support its uses. Project Accomplishments The proposed project represents an opportunity to accomplish several goals of the City/Agency as outlined below: R TducationcompleADDA Staff Report.doc 1. Creates additional affordable housing to assist the City in meeting its housing element requirements. 2. Allows the City to attract a higher education facility, which will greatly balance Temecula's quality of life. 3. Provides a conference facility that would create a hub for economic development activities in the surrounding industrial parks. 4. Creates retail components that support both the educational facilities and the surrounding industrial parks, making the proposed complex a true village center. 5. Redirects the predominate traffic patterns by placing housing west of the freeway. 6. Enhances suppoil for French Valley interchange and extension west across Murrieta Creek. Further, if a project was developed on the property which did not include affordable housing, the Low -Mod Fund would need to be reimbursed $3.8 million. Agency Assistance/Disposition and Development Agreement As envisioned under the. Exclusive Negotiating Agreement, the Agency and the Developer have been negotiating a Disposition and Development Agreement for this project. On December 19, 2003 the Developer furnished the Agency a signed copy of the DDA and a $100,000 deposit. The DDA sets forth the milestones and timelines necessary to develop this project. There are three basic components to the DDA as follows: 1. The developer will purchase the property from the Agency for $3.8 million dollars, assuming the developer proceeds with the entire project. The purchase will occur in two or more phases as previously described. 2. The Agency will use the proceeds of the property sales to loan the developer $3.8 million to develop the 50 units of affordable housing ($76,000 per unit in funding assistance). This loan is forgiven at the end of 55 years, so long as the developer continues to operate the 50 units of affordable housing consistent with the provisions of the State Redevelopment Law. 3. The developer cannot close escrow and take ownership of the property (per phase) unless all three of the following milestones are met: a. The developer receives the necessary City approvals b. The developer has the necessary private financing in place c. The developer has 50% of the non-residential buildings pre -leased The Developer has agreed to install all off -site improvements and complete all mass grading (over - excavation and re -compaction) for the entire Project (all Phases). If the Developer does not close on subsequent phases and is in not otherwise in default, the Agency will pay the Developer a pro rate share of the actual costs incurred for theses improvements. The Agency will impose: a use covenant for a minimum period of 20 years on the educational facilities requiring that they be used exclusively for higher educational purposes. If after the first 10 years of the covenant, the Developer provides evidence acceptable to the Agency that the Developer has not been able to lease to the facilities in compliance with the covenant after diligent R:1EducationcompleADDA Staff Report.doc efforts to do so, then Developer may lease such space to a tenant reasonably approved by the Agency for a use which is compatible with the project. Time Line As described in more detail in the Schedule of Performance (Exhibit D of the DDA), the developer will have 16 months to meet the milestones and close escrow on Phase 1. The developer will then have 10 months after the close of escrow to complete the necessary on and offsite improvements for the entire property. The developer has 30 months after the close of escrow to complete the apartments and first educational tower. The DDA does provide for conditional time extensions. The timelines set forth in the DDA are the contractual obligation for the Developer's performance. However, the Developer has also compiled a timeline he believes can be met. Under his timeline, the project will receive Planning Commission approval in 8 -10 months and will be able to close escrow on Phase 1 within 12-14 months of executing the DDA. Allowing for an 8 -10 month construction period, he is anticipating having Phase 1 open within 30 months of executing the DDA which would be the fall of 2006. Environmental Review An Initial Environmental Study (IES) was prepared for this project in June 2003. The preliminary evaluation of the projects environmental effects determined that there was a potential for some significant and un-mitigatable impacts. According to the IES, the potential significant impacts were in the areas of air quality, transportation and traffic, hazards and hazardous materials, and cultural resources. As a result, the City issued a Notice of Preparation (NOP) on June 19, 2003. A copy of the Initial Environmental Study and the responses to the NOP are contained in Section 9 of the Draft Environmental Impact Report. Following the release of the Notice of Preparation, the Initial Environmental Study was circulated for public review between June 23, 2003 and July 23, 2003. No additional comments were received on the issues addressed in the IES. The Draft of the Focused Environmental Impact Report (EIR) was circulated for public review and comment from November 10, 2003 to December 26, 2003. According to the analysis in the EIR, the Project is expected to have the following impacts on the environment: Air Quality — Construction -related Air Quality — Cumulative Transportation/Traffic — Cumulative Hazards and Hazardous Materials Cultural Resources Remains Significant after Mitigation Remains Significant after Mitigation Remains Significant after Mitigation Less than Significant with Mitigation Less than Significant with Mitigation Asa result, a Statement of Overriding Considerations will be required to approve this Project for the construction -related air quality impacts and the cumulative air quality and traffic impacts. The City received comment letters from the State Department of Toxic Substances Control; The Gas Company, the Riverside Transit Agency, the City of Murrieta, and the law firm of Miranda, Tomaras and Ogas (representing the Pechanga Band of Luiseno Indians). The comment letters and the official response to comments are contained in the Final Environmental Impact Report. The Final EIR incorporates the Draft EIR (by reference), the Response to Comments, the Mitigation Monitoring Program, and the Statement of Overriding Considerations. The Mitigation Monitoring Program (MMP) contained in the Final EIR includes modifications to the originally proposed mitigation measures based upon the comments on the Draft EIR. RAEducationcompleADDA Staff Report.doc FISCAL IMPACT: The Redevelopment Agency's Low -Mod Fund has a $3.8 million basis in the property. The proceeds from the sell of the property will be redistributed back to the 50 units of affordable housing in the apartment complex. ATTACHMENTS: Resolutions Final Environmental Impact Report Disposition and Development Agreement Re -Use Analysis 33433 Report Site Plan R:1EducationcompleADDA Staff Report.doc RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DISPOSTION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND AGK GROUP, LLC, FOR THE TEMECUAL EDUCATIONAL COMPLEX THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Temecula hereby finds, determines and declares that: A. The Redevelopment Agency of the City of Temecula ("Agency") is a community redevelopment agency duly organized and existing under the Community Redevelopment Law ("CRL"), Health and Safety Code Sections 33000 et seq. and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of Temecula. B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988-1" (hereafter the "Plan") in accordance with the provisions of the CRL. On December 1, 1989, the City of Temecula was incorporated. The boundaries of the Project Area described in the Plan are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91-08, 91-11, 91-14, and 91-15 establishing the Redevelopment Agency of the City of Temecula and transferring jurisdiction over the Plan from the County to the City. Pursuant to Ordinance Nos. 91-11 and 91-15, the City of Temecula and the Redevelopment Agency of the City of Temecula assumed jurisdiction over the Plan as of July 1, 1991. C. The Disposition and Development Agreement ("Agreement") approved by this Resolution is intended to effectuate the Redevelopment Plan for the Agency's Redevelopment Project Area No. 1988-1, as amended, by contributing certain real property and providing financial assistance to be used by the Developer to develop the Temecula Educational Complex. The proposed Temecula Educational Complex will be built on a 31.1 acre site located southwesterly of the intersection of Diaz Road and Cherry Street within the Project Area and will consist of the following components subject to the terms of the proposed Disposition and Development Agreement and City approvals: (1) Conference center; (2) two college educational classroom buildings (termed educational towers); (3) central five- story signature tower; (4) amphitheater; (5) support commercial facilities, including day care and retail uses; (6) possible professional and research office space; (7) multi —family housing; and (8) parking areas to support all of the above described uses(collectively the "Project"). The multi -family housing will consist of 273 units of which 50 will be affordable to persons and families of very low income as defined in Section 50105 of the California Health and Safety Code (i.e. to families earning up to 50% of Riverside median income). R:/Resos 2004/Resos 04- D. The Agreement is also intended to effectuate the objectives of the Agency and the City of Temecula (the "City") in complying with their obligation to provide low and moderate income housing pursuant to the Health and Safety Code of California and the goals of the Cit•('s Housing Element to the Temecula General Plan. The Developer's development of the Project and the fulfillment generally of this Agreement are in the best interest of the City and the welfare of its residents, and in accordance with the public purposes and provisions of applicable federal, state, and local laws and requirements. E. Pursuant to the provisions of Health & Safety Code Sections 33430, 33431 and 33433, on February 24, 2004 the Agency duly noticed and held a joint public hearing before the Board of Directors of the Redevelopment Agency of the City of Temecula and the City Council of the City of Temecula concerning the approval of the proposed Disposition and Development Agreement with Developer. F. Pursuant to the requirements of Health & Safety Code Section 33433, a comprehensive report summarizing and analyzing the proposed Disposition and Development Agreement. The report specifically contains the information required by Section 33433 and has been prepared within the time limit set forth therein and made available for public review from the date of the first publication of the notice of public hearing. G. The conveyance of the property as proposed by the Disposition and Development Agreement is at a price which is not less than fair market based on the Agency's real estate appraisal and analysis. H. The development of the Project as required by the Agreement will assist in the elimination of blight in the Project Area as identified in the proceedings establish- ing the Project Area in that development of Project on the Site will: (1) Facilitate land development which will result in employment opportunities and an expanded tax base; (2) facilitate the development or educational facilities which will assist in providing educational opportunities and job training to residents and workers in the in the Project Area and the City of Temecula; (3) consolidate irregular and substandard properties into a site appropriate for development; (4) encourage and provide for development of vacant properties in accordance with the Plan; (5) create a mixed use environment to reduce vehicle trips by locating the educational facility in conjunction with residential, retail and day care opportunities; and (6) preserve, improve, and expand housing opportunities for low and moderate income residents. I. The Agreement is consistent with the Redevelopment Plan and the Implementation Plan adopted by the Agency for the Project Area adopted by the Agency. J. The redevelopment of the Project site as provided in the Agreement and is consistent with the City's General Plan. K. The Agency is specifically authorized by Health & Safety Code Sections 33430, 33431 and 33433, and other applicable law, to enter into the Disposition and Development Agreement. L. The Agency Board and City Council have duly considered all terms and conditions of the: proposed Agreement and believes that such agreement is in the best R:/Resos 2004/Resos 04- interests of the Agency and City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements. M. Following consideration of the entire record of information received at the public hearings before the Agency and City Council, and due consideration of the proposed Project, the Redevelopment Agency adopted Resolution No. 04- entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY COUNCIL OF THE CITY OF TEMECULA CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE TEMECULA EDUCATIONAL COMPLEX PROJECT, THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND AGK GROUP, L,LC. FOR THE DEVELOPMENT OF THE TEMECULA EDUCATIONAL COMPLEX, AND RELATED ACTIONS, AND ADOPTING THE FINDING PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, APPROVING A STATEMENT OF OVERRIDING CONSIDERATIONS, AND APPROVING A MITIGATION MONITORING AND REPORTING PROGRAM IN CONNECTION THEREWITH FOR THE TEMECULA EDUCATIONAL COMPLEX TO BE DEVELOPED ON APPROXIMATELY 31.1 ACRES OF PROPERTY SOUTHWESTERLY OF THE INTERSECTION OF DIAZ ROAD AND CHERRY STREET." The Final Environmental Impact Report (FEIR) and mitigation monitoring reporting program accurately addresses the impacts associated with the approval of the Temecula Educational Complex, the Disposition and Development Agreement, and adoption of this Resolution. N. This Agreement pertains to and affects the ability of all parties to finance and carry out their statutory purposes and to accomplish the goals of the Plan and is intended to be a contract within the meaning of Government Code Section 53511. Section 2. The City Council of the City of Temecula hereby further finds, determines and declares that: A. Section 33334.2, et seq. of the CRL authorizes and directs the Agency to expend a certain percentage of all taxes which are allocated to the Agency pursuant to the CRL Section 33670 for the purposes of increasing, improving and preserving the community's supply of housing available at affordable housing costs to persons and families of low to moderate income, including lower income and very low income households. B. Pursuant to the CRL, the Agency has established a Low and Moderate Income Housing Fund (the "Housing Fund"). C. Pursuant to the CRL Section 33334.2(e), in carrying out its affordable housing activities, the Agency is authorized to provide subsidies to or for the benefit of very low and lower income households, or persons and families of low or moderate income to the e>dent those households cannot obtain housing at affordable costs on the open market. D. Developer proposes, with the assistance of the Agency, to develop the Project and upon completion to make available for the longest feasible period of time all of the housing units in the Project at affordable rents to very low income households. R:/Resos 2004/Resos 04- E. Pursuant to Sections 33132, 33133, and 33600 of the CRL, the Agency may accept financial or other assistance from any public or private source, for the Agency's activities, powers, and duties, and expend any funds so received for any of the purposes of the CRL. F. The expenditures from the Housing Fund as contemplated by the Agreement approved by this Resolution will directly and specifically increase, improve, and preserve the community's supply of very low income housing within the meaning of Health and Safety Code Section 33334.2 and will be of benefit to the Project Area by providing new housing which restricted so as to be affordable for occupancy by very low income households. G. The California Legislature declares in Health and Safety Code Section 37000, et seq., that new forms of cooperation with the private sector, such as leased housing, disposition of real property acquired through redevelopment, development approvals, and other forms of housing assistance may involve close participation with the private sector in meeting housing needs, without amounting to development, construction or acquisition of low rent housing projects as contemplated under Article XXXIV of the State Constitution and that the Agreement approved hereby is not subject to the provisions of said Article XXXIV. Section 3. While the Agency determines that participation in the feasibility analysis, financing, and development of the Project does not constitute development, construction or acquisition of a low -rent housing project within the meaning of Article XXXIV of the State Constitution, this Resolution is hereby deemed to constitute approval within the meaning of Health and Safety Code: Section 37001.5 of a proposal which may result in housing assistance benefiting persons of low income. Section 4. The City Council concurs in the finding that the lien of the covenants required pursuant to the Agreement may be subordinated to financing for the Project because. an economically feasible alternative method of financing the Project on substantially comparable terms and conditions, but without subordination, is not reasonably available. Section 5. The City Council of the City of Temecula hereby consents to the Agency approval that certain agreement entitled "Disposition and Development Agreement" by and Between Temecula Redevelopment Agency and AGK Group, LLC, a California Limited Liability Company, and the agreements referred to therein, with such changes in such document as may be mutually agreed upon by the Developer and the Agency Executive Director as are in substantial conformance: with the form of such Agreement which is on file in the Office of the Agency Secretary. Section 7. The City Clerk shall certify the adoption of this Resolution. R:/Resos 2004/Resos 04- 4 PASSED, APPROVED AND ADOPTED by the City Council of the City of Temecula this 16`" day of March, 2004. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CIVIC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan Jones, CIVIC, City Clerk of the City Council of the City of Temecula, do hereby certify that the Resolution No. 04- was duly and regularly ado�ted by the City Council of the City of Temecula at a regular meeting thereof, held on March 16` , 2004, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Susan W. Jones, CIVIC City Clerk R:/Resos 2004/Resos 04- RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE TEMECULA EDUCATIONAL COMPLEX PROJECT, THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND AGK GROUP, LLC. FOR THE DEVELOPMENT OF THE TEMECULA EDUCATIONAL COMPLEX, AND RELATED ACTIONS, AND ADOPTING FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, APPROVING A STATEMENT OF OVERRIDING CONSIDERATIONS, AND APPROVING A MITIGATION MONITORING AND REPORTING PROGRAM IN CONNECTION THEREWITH FOR THE TEMECULA EDUCATIONAL COMPLEX TO BE DEVELOPED ON APPROXIMATELY 31.1 ACRES OF PROPERTY SOUTHWESTERLY OF THE INTERSECTION OF DIAZ ROAD AND DEIVDY LANE THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Temecula ("City") hereby finds and determines as follows in making findings of fact pursuant to Section 15091 of the California Environmental Quality Act ("CEQA") a. Pursuant to the California Environmental Quality Act ("CEQA"), the Council is the lead agency for the Project as the public agency with both general governmental powers and the principle: responsibility for implementing the Project. b. A Notice of Preparation of a Draft Environmental Impact Report ("Draft EIR") was issued on June 12, 2004, inviting comments from responsible agencies, other regulatory agencies, organizations and individuals pursuant to State CEQA Guidelines section 15082. C. Written statements were received by the City in response to the Notice of Preparation, which assisted the City in narrowing the issues and alternatives for analysis in the Draft EIR. d. A Draft EIR was prepared by the City pursuant to State CEQA Guidelines section 15168 to analyze potential adverse environmental impacts of Project implementation pursuant to CEQA. e. Upon completion of the Draft EIR dated November 10, 2003, the City initiated a 45-day public comment period by filing a Notice of Completion with the State Office of Planning and Research; which comment period closed on December 26, 2003. f. The City also published a Notice of Availability for the Draft EIR in a newspaper of general circulation. Copies of the Draft EIR were sent to public agencies, organizations, and individuals. In addition, the City placed copies of the Draft EIR in public libraries in Riverside County and made copies available for review at City offices. R:/Resos 2004/Resos 04- g. During and before the official public review period for the Draft EIR, the City received written comments, all of which were responded to by the City. Those comments and the responses are included as part of the Final Environmental Impact Report/Response to Comments document ("Final EIR"). h. Pursuant to Public Resources Code section 21092.5, the City provided its responses to all commentators and released the Final Environmental Impact Report on February 13, 2004. i. Section 15091 of the State CEQA Guidelines prevents the City from approving or carrying out a project for which an EIR has been completed that identifies any significant environmental effects unless the City makes one or more of the following written finding(s) for each of those significant effects accompanied by a brief explanation of the rationale for each finding: (1) Changes or alterations have been required in, or incorporated into, the project which ,avoid or substantially lessen the significant environmental effects as identified in the final EIR; or, (2) Such changes or alterations are within the responsibility and jurisdiction of another public Council and not the Council making the finding. Such changes have been adopted by such other Council or can and should be adopted by such other Council; or, (3) Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or project alternatives identified in the final EIIR. j. Section 15093 of the State CEQA Guidelines requires that if the Project will cause significant unavoidable adverse impacts, the City must adopt a Statement of Overriding Considerations prior to approving the project. A Statement of Overriding Considerations states that any significant adverse project effects are acceptable if expected project benefits outweigh unavoidable adverse environmental impacts. k. Exhibit A to this Resolution contains the findings of the Council with respect to the Project which establish the basis for the approval and certification of the Final Environmental Impact Report for the Project. Exhibit A, "Candidate Facts, Finding, and Statement of Overriding Considerations Regarding the Environmental Effects From Implementing the Temecula Educational Complex Project," is hereby incorporated herein by this reference as though set forth in full. I. Findings describing the Project, environmental review, and preparation of the Draf: EIR and Final EIR, are set forth in Section 1 of this Resolution and Sections A, B, and C of Exhibit A. M. Environmental impacts identified in the Final EIR which the Council finds are less than significant and do not require mitigation and environmental impacts identified in the Final EIR as potentially significant, but which the Council finds can be mitigated to a less than significant level through the imposition of mitigation measures and/or conditions identified in the Final EIR and Project and set forth herein are described in Section 2 of this Resoluttion and Section D of Exhibit A. R:/Resos 2004/Resos 04- n. Environmental impacts identified in the Final EIR as potentially significant but which the Council finds cannot be fully mitigated to a less than significant level despite the imposition of all feasible mitigation measures described in Section 3 of this Resolution and Section E of Exhibit A. o. Alternatives to the Project that might eliminate or reduce significant environmental impacts are described in Section 4 of this Resolution and Section F of Exhibit A. P. A discussion of Project benefits identified by Council and City staff and a Statement of Overriding Considerations for the environmental impacts that cannot be fully mitigated to a less than significant level are set forth in Section 5 of this Resolution and in Sections G and H of Exhibit A. q. Public Resources Code section 21081.6 requires the Council to prepare and adopt a mitigation monitoring and reporting program for any project for which mitigation measures have been imposed to assure compliance with the adopted mitigation measures. r. Prior to taking action, the Council and the Redevelopment Agency of the City of Temecula held a joint public hearing concerning the proposed Project on March 16, 2004 at which time, members of the public had an additional opportunity to supplement the administrative record by testifying before the Council and the Agency concerning the Project. The Council and Agency have heard, been presented with, reviewed and considered all of the information and data in the administrative record including the Final EIR, and all oral and written testimony presented to it during meetings and hearings. The Final EIR reflects the independent judgment of the Council and is deemed adequate for purposes of making decisions on the merits of the Project and related actions. No comments or any additional information submitted to the City have produced any substantial new information requiring circulation or additional environmental review of the Final EIR under Cli nor do the minor modifications to the Final EIR require additional public review because no new significant environmental impacts were identified, no substantial increase in the severity of any environmental impacts would occur. Section 2. Findings Concerning Impacts Which will have Less than Significant Impact. The Council hereby finds and declares that based on all of the evidence presented, including the Final EIR, written and oral testimony given at meetings and hearings, and submission of testimony from the public, organizations, and regulatory agencies, the environmental impacts associated with the Project which will have a less than significant impact through the Initial Study are listed in Section D of Exhibit A to this Resolution. The Council hereby further finds that mitigation measures outlined in the Draft EIR have been incorporated into the Project that avoid or substantially lessen potentially significant environmental impacts identified in the Project Draft EIR to a less than significant level and that such impacts are listed in Section D of Exhibit P, to this Resolution. Section 3. Findings Concerning Impacts Which Will Which Cannot be Fully Mitigated and Statement of Overriding Considerations Concerning These impacts. The Council hereby finds and declares that based on all of the evidence presented, including the Final EIR, written and oral testimony given at meetings and hearings, and submission of testimony from the public, organizations, and regulatory agencies, that, despite the incorporation of mitigation measures outlined in the Draft EIR, the impacts listed in Section E of Exhibit A cannot be fully mitigated to a less than significant level, and a Statement of Overriding Considerations is therefore included as part of Section 5 of this Resolution. R:/Resos 2004/Resos 04- Section 4. Findings Concerning Alternatives. CEQA requires that an EIR evaluate a reasonable range of alternatives to a Project, or to the location of the Project, which: (1) offer substantial environmental advantages over the Project proposal, and (2) may be feasibly accomplished in a successful manner within a reasonable period of time considering the economic, environmental, social and technological factors involved. An EIR must only evaluate reasonable alternatives to a Project which could feasibly attain most of the Project objectives, and evaluate the comparative merits of the alternatives. In all cases, the consideration of alternatives is to be judged against a "rule of reason." The lead agency is not required to choose the "environmentally superior' alternative identified in an EIR if the alternative does not provide substantial advantages over the proposed Project and (1) through the imposition of mitigation measures the environmental effects of a Project can be reduced to an acceptable level, or (2) there are social, economic, technological or other considerations which make the alternative infeasible. The Council hereby finds and declares that based on all of the evidence presented, including the; Final EIR, written and oral testimony given at meetings and hearings, and submission of testimony from the public, organizations, and regulatory agencies, that it has considered the alternatives identified in the Draft EIR as described in Section F of Exhibit A to this Resolution in the manner required by CEQA. Section 5. Project Benefits and Statement of Overriding Considerations. Pursuant to State CEQA Guidelines section 15093, the Council must balance the benefits of the Project against any unavoidable environmental impacts in determining whether to recommend approval of the Project. If the benefits of the Project outweigh the unavoidable adverse environmental impacts, those impacts may be considered "acceptable." a. The Council hereby finds that the Draft EIR has identified and discussed significant effects that will occur as a result of the Project. With the implementation of the mitigation measures discussed in the Draft EIR and Project, these effects can be mitigated to a less than significant level except for the unavoidable significant impacts as discussed in Section 2, 3 and 4 of this Resolution. b. The Council declares that it has made a reasonable and good faith effort to eliminate or substantially mitigate the potential impacts resulting from the Project. C. The Council finds that to the extent any mitigation measures recommended in the Draft EIR and/or Project could not be incorporated, such mitigation measures are infeasible because they would impose restrictions on the Project that would prohibit the realization of specific economic, social, and other benefits that the Council finds outweigh the unmitigated. d. The Council declares that, having reduced the adverse significant environmental effects of the Project to the extent feasible by recommending adopting of the proposed mitigation measures, having considered the entire administrative record on the Project, and having weighed the benefits of the Project against its unavoidable adverse impacts after mitigation, the Council has determined that the social, economic, and environmental benefits of the Project outweigh the potential unavoidable adverse impacts and render those potential adverse environmental impacts acceptable based upon the project benefits and overriding considerations described in Sections G and H of Exhibit A to this Resolution. e. The Council finds that the foregoing benefits provided to the public through approval and implementation of the Project outweigh the identified significant adverse environmental impacts of the Project which cannot be mitigated. The Council further finds that each of the Project benefits outweighs the unavoidable adverse environmental effects identified R:/Resos 2004/Resos 04- in the Draft EIR and therefore finds those impacts to be acceptable. Each of the benefits listed above, standing alone, is sufficient justification for the Council to override these unavoidable environmental impacts. f. The Council finds that it has reviewed and considered the Final EIR in evaluating the Project, that the Final EIR is an accurate and objective statement that fully complies with the CEQA, State CEQA Guidelines and the City's local CEQA Guidelines and that the Final EIR reflects the independent judgment of the Council. Section 6. Certification of EIR. The Council hereby certifies the Final Environmental Impact Report for the Temecula Educational Complex based on the following findings and conclusions: a. All significant environmental impacts from implementation of the Project have been identified in the Draft EIR and, with implementation of the mitigation measures identified, will be mitigated to a level of insignificance, except for those impacts listed in Section 3 of this Resolution. b. Other reasonable alternatives to the Project, which could feasibly achieve the basic objectives of the Project, have been considered and rejected in favor of the Project as discussed in Section 4 of this Resolution. C. Environmental, economic, social and other considerations and benefits derived from the development of the Project override and make infeasible any alternatives to the Project or further mitigation measures beyond those incorporated into the Project as discussed in Section 5 of this Resolution. Section 7. Adoption of Recommendation for the Adoption of a Mitigation Monitoring and Reporting Program. The Council hereby adopts the Mitigation Monitoring and Reporting Program, attached to this Resolution as Exhibit B. Exhibit B is attached hereto and incorporated herein by this reference as though set forth in full. In the event of any inconsistencies between the mitigation measures as set forth herein and the Mitigation Monitoring and Reporting Program, the Mitigation Monitoring and Reporting Program shall control. Section 8. Location of Records. The documents and materials that constitute the record of proceedings on which these Findings have been based are located at the City of Temecula, 43200 Business Park Drive, Temecula, California 92590. The custodian for these records is the Director of Redevelopment, John Meyer. This information is provided in compliance with Public Resources Code section 21081.6. Section 9. Effective Date. The Resolution shall become effective upon its adoption. The Council Secretary shall certify to the adoption of this Resolution. R:/Resos 2004/Resos 04- PASSED, APPROVED, AND ADOPTED, by the Board of Directors of the Redevelopment Council of the City of Temecula this 16`" day of March, 2004. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CIVIC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, CIVIC, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 04-_ was duly and regularly ado�ted by the City Council of the City of Temecula at a regular meeting thereof held on the 16` day of March, 2004, by the following vote: AYES: 0 COUNCILMEMBERS: NOES: 0 COUNCILMEMBERS: ABSENT: 0 ABSTAIN: 0 COUNCILMEMBERS: COUNCILMEMBERS: Susan W. Jones, CIVIC City Clerk R:/Resos 2004/Resos 04- 6 EXHIBIT A THE FINDINGS CANDIDATE FACTS, FINDING, AND STATEMENT OF OVERRIDING CONSIDERATIONS REGARDING THE ENVIRONMENTAL EFFECTS FROM IMPLEMENTING THE TEMECULA EDUCATION COMPLEX PROJECT A. INTRODUCTION The City of Temecula (City), in approving the Temecula Education Complex Project (TEC or proposed project), makes the findings described below, based on the facts summarized in this document, and adopts the statement of overriding considerations presented at the end of the findings. Hereafter, the following document (Final Temecula Education Complex Environmental Impact Report, SCH #2003061117) will be referred to as the "FEIR" for the term Final Environ- mental Impact Report. The total action that may be implemented by approval of the TEC Project consists of all of the actions outlined in the FEIR and the application materials submitted to the City of Temecula to date to create a facility to provide post -high school education programs by several area colleges and universities. Adoption and implementation of the TEC Project constitutes the "proposed project" that will be evaluated in this FEIR. To carry out this proposal, the City of Temecula and the project applicant, the AGK Group, LLC, compiled a Conceptual Site Plan (Figure 2-3 fo the FEIR), the identifies the type and location of required facilities to meet the educational objective described above. It is the total program outlined in the Conceptual Site Plan and Project Description (see Chapter 4 of the FEIR) that constitutes the proposed project evaluated in the FEIR. B. PROJECT SUMMARY B.1 PROJECT LOCATION Locally, the project site is situated about one mile west of the 1-15 freeway and westerly of and adjacent to Murrieta Creek near the foot of the easterly slope of the Santa Rosa Mountains. The site is located within the northwestern portion of the City and is bounded by Diaz Road on the east; Dendy Parkway on the south; and the proposed Cherry Street alignment and the corporate boundary of the City of Temecula to the north. B.2 PROJECT CHARACTERISTICS To accomplish the above project objectives, the applicant has submitted a CUP application, a Development Plan that provides a conceptual level plan of site development as well as a Disposition and Development Agreement. Approval by the City of these applications and entitlements constitute the authorization to implement the Temecula Education Complex and the facilities outlined below. If the project changes in the future as individual phases are implemented, subsequent environmental documentation will be prepared in accordance with Section 15162 of the State CEQA Guidelines. The AGK Group in cooperation with the City of Temecula Redevelopment Agency (RDA) is proposing to construct the Temecula Education Complex (TEC) Project. The TEC Project is a mixed use development focused on educational facilities and supporting uses to be located on -1- the 34.73-acre parcel of land owned by the RDA at the location described in the previous section. The TEC facilities are being proposed to consolidate college education activities within the City of Temecula at a single location to serve the surrounding community. Classes being offered by the University of California Riverside, California State University San Marcos and the Mount San Jacinto Junior College District will be consolidated at the TEC. The facilities proposed to be developed at the TEC include: 1. Conference Center: single story structure with 23,000 square feet (sf) 2. West Education Tower: four or five story classroom structure with 57,600 sf 3. Core Tower: five -story signature tower 4. East Education Tower: four or five story classroom structure with 57,600 sf 5. Amphitheater: an outdoor grass amphitheater with stage 6. Day Care Facility: 16,000 sf single story day care center with play yard 7. Retail: 13,500 sf single -story retail center 8. Retail: 14,500 sf single -story retail center 9. Mixed Use:-40,000 sf mixed use two-story structure with-20,000 sf of bottom floor and an estimated 15 "loft" residential units for rent or sale 10. Apartments (Craek Walk): 280 apartment units three to four stories in heighl 11. Research and Development (R&D) Multi -tenant: 16,000 sf professional/office complex retail on the single -story 12. Parking Areas: six parking areas encompassing 1,530 parking spaces, including open parking lots, parking structures, and garages It is anticipated that the above facilities will be constructed in three phases, but phasing will actually be dependent upon demand by the colleges and area demand for the facilities. Phase 1 is proposed to include the following: core tower, east education tower, day care center, retail, retail/loft, the Apartments and requisite support parking. Phase 2 is proposed to include: amphitheater, conference center and retail. Phase 3 is proposed to include: the R&D Multi - tenant and west education tower. Parking facilities will be installed based on demand by the facilities in each phase and the need for site access and circulation. Landscape and hardscape components are also :shown on Figure 2-3 and will be installed concurrent with the facilities constructed during each phase. All perimeter landscaping will be installed as part of Phase I. Areas not being developed during the early phases will be maintained with a grass and/or park- like groundcover until needed for facility construction. Individual structures are estimated to require from 3 to 9 months to construct. Once completed several thousand students per day will received education at the proposed project facilities. C. ENVIRONMENTAL REVIEW The entire administrative record, including the project applications, the FEIR, public comments and responses, City Staff reports, and these facts, findings and statement of overriding considerations, serve eis the basis for the City of Temecula's environmental determination. The City Council's environmental determination is that the FEIR addresses all of the potential impacts from implementing the proposed as outlined above and defined in detail in Chapter 4 of the FEIR. The detailed environmental impacts and proposed mitigation measures for the future development of TEC facilities are presented in Chapter 5 of the FEIR and in the responses to comments (under separate cover) which is part of the FEIR. Alternatives to the proposed -2- project are discussed in Chapter 6 of the FEIR. Evaluations of growth inducement, cumulative impacts, and irreversible commitment of resources are provided in Chapter 7, Topical Issues, of the FEIR. The following findings contain a summary of the facts used in making determinations for each environmental issues addressed in the FEIR. Consideration of the EIR: The CEQA environmental review process for the TEC Project was initiated on June 12, 2003 with the release of the Notice of Preparation (NOP) for public review and comment. The NOP comment period ended on July 12, 2003 and a total of either comment letters were received from the public. The NOP identified four issues of focus in a Draft EIR: air quality, transportation/traffic; hazards and hazardous materials; and cultural resources. After review of the NOP comments, the scope of the Draft EIR was finalized and no additional issues were added to the scope of the DEIR. The TEC Project DEIR was released to the public for review and comment on November 10, 2003. The mandatory 45-day review period closed on December 26, 2003. A total of six comment letters, including the State Clearinghouse comment closure letter, were received on the DEIR. The Final Environmental Impact Report, FEIR, dated February 13, 2004, was transmitted to all parties, including public agencies, that commented on the DEIR to fulfill the requirements of Section 21092.5 of the CEQA statute. The FEIR and all supporting material has been made available to the Temecula City Council and a summary of the FEIR and its findings presented directly to the Council for consideration in making its decision to certify the FEIR and approve the TEC Project. The Temecula City Council makes the following certifications pursuant to the California Environmental Quality Act Guidelines Section 15090. The City Council finds and certifies that the FEIR has been completed in compliance with CEQA. The City Council certifies that all voting members have reviewed and considered the FEIR prior to approving the TEC Project implementation. In addition, all voting City Council members have reviewed and considered the additional information presented at or prior to the public hearing on March 16, 2004. The City Council further finds and certifies that the FEIR reflects the independent judgement and analysis of the City, the Council and its Staff and the FEIR is adequate for this proposed project. 2. Full Disclosure: The Temecula City Council finds and certifies that the FOR constitutes a complete, accurate, adequate and good faith effort at full disclosure under CEQA. 3. Location of Record Proceedings: The documents and other materials which constitute the record of proceeding upon which this decision is based are in the custody of the City of Temecula located at 43200 Business Park Drive, Temecula, California. This information is provided in compliance with Public Resources Code §21081.6(a)(2). 4. City of Temecula as Lead Agency Under CEQA: The City of Temecula is the 'lead agency" as defined by CEQA Guidelines Section 15050. In compliance with its authority and responsibility for overseeing land use decisions and redevelopment projects within its incorporated area, The City has prepared the Draft and Final EIRs for the TEC -3- Project, prepared these facts, findings and Statement of Overriding Considerations in accordance with the CEQA Guidelines and the Public Resources Code, and will carry out all other duties and responsibilities required of a lead agency under the Public Resources Code and the CEQA Guidelines. D. FINDINGS Presented below are the environmental findings made by the City of Temecula after its review of the documents referenced above; and consideration of written and oral comments on the proposed project at a public hearing, including all other information provided during the decision -making process. These findings provide a summary of the information contained in the FEIR, related technical documents, and the public hearing record that have been referenced by the Temecula City Council in making its decision to approve the TEC Project for immediate implementation as the first step in achieving fulfillment of this several phased education complex. The FEIR prepared for the TEC Project addresses the consequences of implementing construction of all three phases of the Project and operation of educational, residential, commercial and professional office uses on this approximate 31 acre site in the northwestern portion of the City of -Temecula. This FEIR, and supporting Initial Study, evaluated 15 major environmental issues categories for potential significant adverse impacts. The major environmental issue categories presented in the FEIR, are: air quality; transportationttraffic, hazards and hazardous materials; and cultural resources. The issues found in the Initial Study to have no potential for significant adverse impact included: land use and planning; population and housing; geology and soils; hydrology and water quality; biological resources; mineral resources; noise; public services; utilities and service systems; aesthetics; and recreation. When all impact categories are included, the FEIR reached a total of 30 findings on environmental issues. Short and long-term impacts and project -specific and cumulative impacts were evaluated for implementation of the proposed project. Some of the issue categories contained several subissues which are summarized below. Of these 15 major environmental categories, the City Council concurs with the findings in the FEIR, that the issues and subissues discussed below are either not significant without mitigation or they can be mitigated below a significant impact threshold. Further, for those issues which cannot be mitigated below a level of significance, the City finds that overriding considerations exist which make those impacts acceptable. Those environmental Tissue categories identified in the FEIR and Initial Study as having no potential for significant adverse impact, with or without mitigation, are described below in Section E. The discussion in Section E summarizes the facts and findings contained in the FEIR and Initial Study for the nonsignificant issues, including those for which mitigation has been identified to reduce impacts below a significant level. Unavoidable (unmitigable) significant adverse impacts of the project are described in Section F of this document. This is followed by an analysis and comparison of the alternatives to the proposed project which are described in Section G of this document. Project benefits are described in Section H. The balancing of benefits and impacts and the statement of overriding considerations for this ,project are described and evaluated in Section I of this document. -4- Several additional mitigation measures were identified for modification and implementation in the Responses to Comments of the FEIR. These changes were made in response to comments received regarding cultural resources. The changes have been incorporated into the FEIR and Mitigation Monitoring and Reporting Program (MMRP). All of these changes in mitigation measures remain within the scope of the performance standards outlined in the DEIR, as indicated in the responses to comments to Comment Letter #6. Mitigation measures referenced in this document are also contained in the MMRP which is attached to the FEIR. The mitigation measures that were incorporated in the MMRP identify mitigation measures which are the responsibility of City of Temecula. Monitoring of certain cultural resource measures will be sharEid with the Pechanga Bands of LuiseC o Indians (hereinafter, "Pechanga Tribe"). The monitoring program ensures that the measures identified in the FEIR are implemented in accordance with mitigation discussions in the FEIR. E. NONSIGNIFICANT IMPACTS IDENTIFIED IN THE FOR The following issues were identified in the FEIR as having no potential to cause significant impact or were capable of having impacts reduced below a significant level by implementing the identified mitigation measures. Many of these issues were determined to fall below a level of significant impact in the Initial Study prepared for this project. The Initial Study is incorporated as part of the FOR as Subchapter 9.1. In the following presentation, each resource issue is identified; it is followed by a summary description of the potential significant adverse environmental effect and a short discussion of the findings and facts in the administrative record, as defined above. The Temecula City Council hereby finds that all mitigation measures identified in the FEIR will be implemented to mitigate certain impacts of this project and will be incorporated into or will be required of the project to avoid or substantially lessen potentially significant environmental impacts to a less than significant level of impact. Public Resources Code Section 21081 states that no public agency shall approve or carry out a project for which an environmental impact report has been completed which identifies one or more significant effects, unless the public agency makes one, or more, of the following findings: a. Changes or alterations have been required in, or incorporated into the project which mitigate or avoid the significant environmental effects thereof as identified in the completed environmental impact report; b. Such changes or alterations are within the responsibility and jurisdiction of another public agency and such changes have been adopted by such agency or can and should be adopted by such other agency; and/or C. Specific economic, social or other considerations make infeasible the mitigation measures or project alternatives identified in the environmental impact report. The City Council hereby finds, pursuant to Public Resources Section 21081, that the following issues are nonsignificant adverse impacts because they have no potential to cause a significant adverse impact or bemuse mitigation measures will be implemented, as outlined below, to reduce a potential significant impact to a less than significant level of impact. The City Council further finds that no additional mitigation measures or project changes are required to reduce -5- the potential impacts discussed in this section to a less than significant level of impact. These issues and the measures adopted to mitigate them to a level of insignificance are as follows. Issues Determined to tie Nonsignificant in the Initial Study Land Use a. Physically divide an established community. - Facts: The project site is located in the northwest corner of the City of Temecula surrounded by graded pads, Murrieta Creek floodplain, the Rancho California wastewater treatment plans (WWTP) and light industrial development (to the south). The project area is designated for Public Institutional uses. Finding: The development of this site would result in an isolated education facility/campus in an industrial area and would not divide an established community. b. Conflicts with applicable land use plans, policies or regulations: Facts: The Temecula Education Complex represents the type of use envisioned for the Public Institutional (PI) land use designation. Specifically, this facility will contain college education classrooms, cultural facilities (amphitheater) and support facilities, such as libraries. The only other permit required for the project site is the mandated construction stormwater NPDES permit which is filed with the State Water Resources Control Board. Mitigation is provided to control stormwater pollution during both construction and occupancy to an acceptable, (consistent with Regional Board discharge requirement) nonsignificant level of impact. In addition, the developer will be required to modify the FEMA FIRM map by removing the project site from the 100-year flood hazard zone. Finding: Therefore, no potential for significant conflict with any environmental plan or regulation is forecast to occur if the proposed project is implemented on the project site with mitigation identified in the geology and hydrology sections of this document. c. Conflicts with applicable habitat conservation plans: Facts: The project: site consists of undeveloped property that is bounded by a mix of light industrial, graded development pad, floodplain and open space uses. Only one habitat conservation plan encompasses the project site, and it is the adopted mitigation plan for the Stephen's Kangaroo Rat (SKR). The project developer is required to pay the requisite $500 per acre fee for developing the 31.1 acre site ($15,500) as further discussed in the biology section of this document. Finding: With payment of the mandatory fee for the SKR habitat conservation plan, no significant conflict with the one applicable habitat conservation plan can occur. 2. Population and Housing a. Induce substaniYa/ population growth in the area: Facts: The City General Plan designated this approximate 31-acre site for Public and Institutional Facility uses. The site is already served by all utilities and services and road access, so no indirect growth inducement is forecast to result from implementing this proposed project. As proposed, the Temecula Education Complex is designed to meet the existing demand for college level education from several institutions of higher learning and would include classroom and educational support facilities, retail commercial, office/professional and multi -family residential uses. These uses will be developed and operated in direct support of the educational complex. The same reasoning applies to the proposed 295 residential units (apartment and loft units). These units will be mostly associated with operation of the educational facilities. The proposed 295 units constitute 0.5% of the maximum number of total units and 1.6% of the maximum number of multi -family units in the City of Temecula. The addition of up to 295 additional multi -family units within the City of Temecula falls well within the range of the 27,353-51,555 total residential units and of the 11,579-18,764 multi -family residential units forecast in the City's General Plan on Table 2-2. The range of multi -family units listed above reflects the range of densities (7=20 dwelling units per acre) permitted within the multi -family residential land use deisignations within the City. Finding: The addition of 295 residential units represents such a small increment of units that the impact is not considered significantly growth inducing. Further, at an occupancy rate of 2.8c! persons per unit, the total population that may occupy this project at full occupancy (295 x 2.83 = 834.8) is about 835 persons. This value is consistent with the statistical range of population forecast on Table 4-2A of the General Plan, which at full builcl-out of the City is forecast to range from 78,671 to 145,650 persons. Thus, the project will not induce population growth that exceeds the range envisioned in the General Plan. As a result, no significant population or housing impacts are anticipated and no mitigation is required. b. Displace a substantial number of existing houses: Facts: The project site is presently unoccupied by any housing. Finding: The proposed project has no potential to displace any existing housing. C. Displace substantial numbers of people: Facts: The project site is presently unoccupied by people. Finding: The proposed project has no potential to displace any existing population. 3. Geology and Soils a.i) Expose people or structures to potential substantial adverse effects from fault rupture: 7- Facts: The project: site is located in a portion of the Elsinore Trough, which is itself located within the Peninsular Ranges Geomorphic Province. This trough is a sedimentary basin that is located between the active Wildomar fault and the older Willard fault. A detailed description of the City's geology and soils is contained in Chapter 4.1 of the City's General Plan Environmental Impact Report (GPEIR). According to the GPEIR, the City of Temecula is in Groundshaking Zone II which will experience moderate to intense groundshaking in the event of a major regional earthquake. The project site is located 2,400 feet southwest of the Wildomar Fault (outside of its Alquist-Priolo zone) and about 2,200 feet northeast of the Willard fault. The Murrieta Creek fault (shown as the Willard Fault Zone on Figure 7-1 of the General Plan) is considered active and it is within an Alquist-Priolo zone. The zone occupies the western -most portion of the project site, as shown on Figure 7-1 of the City's General Plan. Geology Mitigation Measure No. 5 is identified in Section 4.11.3 of the GPEIR and it is deemed adequate to reduce most potential groundshaking impacts to a level of nonsignificance. This measure is mandated for implementation as part of the City's General Plan and requires adequate setbacks from any active fault trace. Finding: Based on the conditional mitigation required in the General Plan, the proposed project will not expose people or structures to fault rupture hazards. a.fi) Expose people or structures to potential substantial adverse effects from ground shaking: Facts: According to the GPEIR, the City of Temecula is in Groundshaking Zone II which will experience moderate to intense groundshaking in the event of a major regional earthquake. Geology Mitigation Measure No. 5 is identified in Section 4.1.3 of the GPEIR and it is deemed adequate to reduce most potential groundshaking impacts to a level of nonsignificance. Because this site will be used for public gatherings, additional mitigation measures are proposed to ensure that the proposed project will not expose people or structures to significant ground shaking hazards that could include the loss, injury or death of people. The following mitigation measure shall be implemented to control the onsite ground shaking hazards to a level of nonsignificant impact: 3.a-1 A comprehensive geotechnical investigation shall be required prior to engineering and design development of structures Identified under Risk Class I & 11, e.g., public facilities and residences, as Identified below. Risk Class I & 11, Structures Critically Needed after Disaster. Structures that are critically needed after a disaster include important utility centers, fire stations, police stations, emergency communication facilities, hospitals, and critical transportation elements such as bridges and overpasses and smaller dams. Acceptable Damage: Minor non-structural; facility should remain operational and safe, or be suitable for quick restoration of service. a. Resist minor earthquakes without damage; b. Resist moderate earthquakes without structural damage, but with some non- structural damage; or -f3- C. Resist major earthquakes, of the Intensity or severity of the strongest exper- lanced in California, without collapse, but with some structural, as well as non-structural damage. Finding: Because this site will be used for public gatherings, additional mitigation measures will be implemented to ensure that the proposed project will not expose people or structures to significant ground shaking hazards that could include the loss, injury or death of people. a.ffi) Expose people or structures to potential substantial adverse effects from seismic related ground i'ailure, including liquefaction: Facts: A review of the City's Subsidence/Liquefaction Hazards in the General Plan (Figure 7-2) indicates that the project site is located within a zone of potential subsidence or liquefaction. The proposed project has a very high probability of being exposed to liquefaction hazards. Mitigation 3a will ensure that adequate foundation support will be provided to protect structures from liquefaction hazards that may affect the project site. Finding: Because this site will be used for public gatherings, additional mitigation measures will be implemented to ensure that the proposed project will not expose people or structures to significant liquefaction hazards that could include the loss, injury or death of people. a.iv) Expose people �Dr structures to potential substantial adverse effects from landslide hazards: Facts: Because the majority of the project site is located on the relatively flat (less than 2% slope) valley floor, no landslides were observed on the property proposed for devel- opment. Findine: The lack of observed landslides in the western portion of the project site and the low vertical relief of the site would indicate a low potential for being exposed to significant landslide hazards on this project site. b. Result in substantial erosion or loss of topsoil: Facts: Development of the project site will increase the site's exposure to potentially signi- ficant erosion hazards and downstream sedimentation. Specific requirements have been established under the state-wide National Pollutant Discharge Elimination System (NPDES) permitting program that requires every construction project larger than one acre to implement a Storm Water Pollution Prevention Plan (SWPPP) during construction and during long-term occupancy. Best Management Practices (BMPs) are identified in the SWPPP to control erosion on a site and any sedimentation generated by disturbing the site for development. Structural measures include managing runoff through detention basins, filtering stormwater to remove certain pollutants, use of drainage management material, such as fiber mats or straw bales, and isolating flows from sources of pollution. The following mitigation measures shall be implemented for construction and occupancy erosion control. 0 3.b-1 The developer shall file a Notice of Intent to obtain coverage under the State construction program pursuant to NPDES, prepare a SWPPP for the site, and implement BMPs identified in the Santa Margarita Watershed Drainage Area Management Plan (DAMP). The performance standard that shall be met is to minimize erosion on the site and release no more than 10% suspended sediment from the project site when compared to present conditions. In addition, during construction urban pollutants, grease, oil, etc. shall be reduced by 80% of concentrations In stormwater discharges from the site without BMPs. The same standard shall be used for permanent stormwater discharges from the project site during occupancy. 3.b-2 Developer shall submit a grading and erosion control plan to the Department of Public Works for approval. This plan shall incorporate the measures included in the SWPPP that is designed to achieve the performance standard outlined In measure 3.b.1 above. Over the king -term, landscape and hardscape features can control generation of degraded stormwater. Aside from requiring additional time, energy and material to install and maintain such stormwater pollution management features/equipment, the implementation of BMPs for this project are not forecast to cause significant adverse impacts on their own. C. Be located on a geologic unit or soil that is unstable, or that would become unstable: Facts: As noted Linder issue 3.a, the project site has a potential for significant instability related to subsidence and liquefaction. Findings: Mitigation has been identified above to address this issue. With implementation of the mitigation outlined above the potential for instability is reduced to a less than significant level. d. Be located on expansive soil, as defined in Table 1801-8 of the Uniform Building Code (1994), creating substantial risks to life or property: Facts: Based on a review of the' Western Riverside Area California Soil Survey", the site is underlain by the Monserate-Arlington-Exeter Soil Association, consisting primarily of Chino silt loam and Grangeville fine sandy loam soils, which have a minimal potential to be expansive or create hazards related to expansive soils. Findings: The soil occurring at this location is not expansive as defined in Table 1801-B of the Uniform Building Code, so no adverse impact due to expansive soils can occur. e. Have soil incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems: Facts: The project site will be served by a sewer collection system. Findings: There is no potential for the site to have adverse impacts related to use of subsurface wastewater disposal systems. 4. Hydrology and Water t]uality -10- a. Violate any water quality standards or waste discharge requirements: Facts: The proposed project consists of a mixture of classrooms, retail commercial facilities, professional office facilities, residential facilities and supporting landscaped and hardscaped exterior areas, including parking structures. The uses proposed for this site do not generate wastewater, other than domestic, which would require treatment or waste discharge requirements. Stormwater runoff from the site must be controlled as outlined under mitigation measure 3b. Domestic wastewater will be delivered to the regional treatment plant for treatment under waste discharge requirements established by the San Diego Regional Water Quality Control Board. As noted above, during construction and occupancy, implementation of Bli as outlined in Supplement A of the Santa Margarita Watershed DAMP will be implemented which will control non -point sources of stormwater pollution to a level of nonsignificance. See mitigation measure 3b. Findings: With implementation of the referenced measures, no water quality standards are forecast to be violated by implementing the proposed project. b. Substantially deplate groundwater supplies or create a net deficit in the aquifer: Facts: The project[ site is located on the valley floor outside of the normal Murrieta Creek floodplain. The eastern portion of the site is located within the 100-year flood boundary, but outside of the floodway as defined on Figure 7-3 of the General Plan. On rare occasions the site may have served as a recharge area, but recent use of the site has caused substantial compaction of the property soils, which would minimize the site's value as a current recharge location. The proposed project does not include any extraction of groundwater, so no adverse direct impact can result from implementing the proposed project. The GPEIR addresses water demand from development in the City of Temecula, including the proposed project site for Public and Institutional Facility uses. Finding: Therefore, the project has no potential to adversely interfere with groundwater recharge. The GPEIR concludes that cumulative water demand within the City can be met by the City's two purveyors (Rancho California Water District and Eastern Municipal Water District) without having a significant adverse impact on the environ- ment, including depletion of the area's groundwater supplies. This conclusion is further verified by the adopted Rancho California Water District Urban Water Master Plan. Therefore, the proposed project will not contribute to a significant cumulative, indirect adverse impact on the area groundwater aquifers. C. Substantially alter the existing drainage pattern of the site or area that could cause erosion or siltation on- or off -site: Facts: The projec4 site presently drains to the adjacent roadways south and east of the project site (Diaz Road and Dendy Parkway). From there, surface runoff is collected in the local storm drainage system and delivered to Murrieta Creek, which is located across (east) Diaz Road from the project site (see Figures 2 and 3), which is the regional flood control system for the western portion of the Temecula -11- Valley. The regional drainage system includes Murrieta Creek and ultimately the Santa Margarita River. The existing drainage pattern will be retained after project development. However, the property elevation will be raised by about two feet adjacent to Diaz Road to a level one -foot above the 100-year flood hazard elevation to protect the site from the 100-year flood. Finding: The proposed project will not change the existing drainage pattern of the project site, nor will it affect drainage to or from adjacent properties. Erosion and siltation issues are addressed in previous discussions, and erosion and siltation will be controlled by mitigation measure 3b. d. Substantially al ter the existing drainage pattern of the site or area that could cause flooding on- or off -site: Facts: As previously described, the project will not alter the existing site or area drainage system. It will increase runoff as a result of increasing the impervious surface on the project site. However, the City imposes standard mitigation to detain incremental surface runoff on the property to ensure that the stormwater runoff volume frorn the developed site is not increased from development. Finding: With implementation of the City's mandatory mitigation measure (detention of stormwater flows in excess of existing site runoff), no adverse impacts due to increased discharge of stormwater from the site are forecast to affect downstream properties. e. Create or contribute runoff water which could exceed the capacity of existing or planned drainage systems or generate substantial addition polluted runoff: Facts: As previously described, the project will not alter the existing site or area drainage system. It will increase runoff as a result of increasing the impervious surface on the project site. However, the City imposes standard mitigation to detain incremental surface runoff on the property to ensure that the stormwater runoff volume from the developed site is not increased from development. Finding: With implementation of the City's mandatory mitigation measure (detention of stormwater flows in excess of existing site runoff), no adverse impacts due to increased discharge of stormwater from the site are forecast to affect downstream properties. Implementation of mitigation measure 3b will control the potential for the project site and activities to generate substantial pollution that could degrade water quality. Otherwise substantially degrade water quality: Facts: The uses proposed for this site do not generate wastewater, other than domestic, which would require treatment or waste discharge requirements. Stormwater runoff from the site must be controlled as outlined under mitigation measure 3b. Domestic wastewater will be delivered to the regional treatment plant for treatment under waste discharge requirements established by the San Diego Regional Water Quality Control Board. As noted above, during construction and occupancy, -12- implementation of BMPs as outlined in Supplement A of the Santa Margarita Watershed DAMP will be implemented which will control non -point sources of stormwater pollution to a level of nonsignificance. See mitigation measure 3b. Findings: With implementation of the referenced measures, no substantial degradation of water quality is forecast to occur by implementing the proposed project. g. Place housing within a 100-year flood hazard area: Facts: The projecit site is located on the valley floor, and the eastern portion of the site is located in the vicinity of the identified 100-year flood hazard area for Murrieta Creek. The potential for exposure to significant flood hazards will require mitigation to prevent residents and structures from being exposed to significant flood hazards. 4.g-1 That portion of the site within the 100-year flood hazard area shall be elevated by approximately two feet, or at least one foot above the 100-flood elevation on the property. The Federal Emergency Management Agency (FEMA) FIRM map shall be revised to reflect the removal of the project site from the hazard maps after the site elevation is modified by project grading. Finding: With the change in the project required by this mitigation measures, the proposed project will not result in placing housing or structures within the 100-year flood hazard area. h. Place structures within the 100-year flood hazard area that would impede or redirect flood flows: Facts: The project site is located on the valley floor and the elevation of the project site places it far enough above the 100-year flood hazard area to eliminate a potential to impede or redirect flood flows.. Findings: The project does not have any significant potential to impede or redirect flood flows. The Murrieta Creek channel will continue to carry the 100-year flood flows from the project site and upstream area without significant impact downstream. Also, see preceding discussion. Expose people or structures to significant risk from flooding related to failure of a dam or levee: Facts: The eastern portion of the project site is shown on Figure 7-4 of the Temecula General Plan to be within an area exposed to inundation from a dam failure at Lake Skinner, which is located in the upper portion of the Santa Gertrudis Creek, a tributary of Murrieta Creek. The project site is also exposed to the dam inundation area from failure of the Diamond Valley Lake dams, which would flow down Warm Springs Crtaek to Murrieta Creek and the project site. Finding: The potential for this hazard to affect the site is considered low enough that the City does not require setbacks from the shallow flows that would reach this site from the dams which are more than ten miles from the project site. The City has implemented a multi -hazard functional plan pursuant to the California Emergency -13- Services Act. The proposed project does not contain any critical or essential facilities; therefore, no mitigation is required for this site. j. Inundation by seiche, tsunami or mudf/ow. Facts: There are no nearby water bodies that could cause inundation due to seiche, tsunami or mudflows. Please refer to the discussion in 4.i above which addresses the potential for surface water damage due to potential dam inundation. Finding: No impact is forecast and no mitigation is required. 5. Air Quality a. Conflict with or obstruct implementation of the applicable air quality plan: Facts: The proposed project incorporates 280 new residential units which has been evaluated (See Section 2, Population and Housing) as being consistent with City's General Plan which has been integrated into SCAG's Regional Comprehensive Plan and Guide (RCPG) and the SCAQMD Air Quality Management Plan (AQMP). The analysis in the population section of this document indicates that the total number of residential units permitted within the City will not be increased in the aggregate due to development at lower than maximum densities within the City. Findings: Development of the project site will not conflict with any applicable air quality plan, such as the 2003 Air Quality Management Plan and the most recent Regional Comprehensive Plan and Guide. e. Create objectionable odors affecting a substantial number of people: Facts: None of the activities at the project site have a potential to generate significant odors or create substantial odor concentrations that could harm sensitive receptors. The project site is located near two wastewater treatment plants which can generate odors during upset events. The Rancho California WWTP is located immediately north of the project site and the Eastern Municipal WWTP is located about 1/4 mile to the south of the project site. Findings: Since negative odor generation is a random event and not continuous, no significant adverse odor impacts are forecast to impact the future uses on the project site, 6. Transportation ITraffic C. Change air traffic patterns such that a substantial safety risk is created. Facts: The project site is not located near any airport. Findings: Therefore, the proposed project has no potential to adversely impact any air traffic patterns. 14- d. Substantially increase hazards due to project design features or incompatible uses: Facts: Based on a review of the proposed project circulation system improvements described in the project description, no roadway hazards will be created by implementing the proposed project. Findinas: Therefore, the proposed project cannot substantially increase traffic hazards. e. Result in inadequate emergency access: Facts: Emergency access to the project site will be facilitated with the proposed extension of the Diaz Road paved road section to the City of Temecula/Murrieta boundary and the construction of the two adjacent roadways, Cherry and Dandy. Findings: Since the roadways will be installed prior to occupying the project facilities, no potential exists to adversely impact emergency access to the project area. f. Result in inadequate parking capacity. Facts: Adequate onsite parking will be provided through a combination of parking structure(s)i and parking lots, as required. A total of approximately 1,530 parking spaces and garages will be provided to meet the City's Development Code parking requirements. Findings: Therefore, the proposed project will not result in inadequate parking capacity. g. Conflict with adopted policies, plans or programs supporting alternative transportation: Facts: The project will be conditioned to provide alternative transportation facilities, bike and mass transit facilities, consistent with the road improvements serving the project site. Also, please refer to the discussion in Chapter 2 which responds to the RTA comment letter on the Notice of Preparation. Findinas: No conflict or adverse impact to adopted alternative transportation policies, plans or programs is forecast to occur from implementing the proposed project. 7. Biological Resources a. Have a substantial direct and indirect adverse effect on any sensitive species identified by the Fish and Wildlife Service and Department of Fish and Game: Facts: The general biological survey conducted by Tom Dodson & Associates indicates that the project site is a completely unvegetated, heavily disturbed parcel of land. A single, large eucalyptus tree is located on the parcel according to the report accompanying site photographs. -15- Findin s: No suitablo habitat for any state or federally listed Threatened or Endangered species was found on the project site. No threatened or endangered species, including no Quino checkerspot butterflies (QCB), no Stephen's kangaroo rat (Dipodomys stephensi) and no California gnatcatchers (CAGN) were identified on the property. The project site is located within the Riverside County HCP for the Stephen's Kangaroo rat (Dipodomys stephenst) and the project will be required to contribute $500 per acre to the HCP fund to address general impacts from urbanization in southwestern Riverside County. No significant biological resource impacts are forecast to occur. b-c. Significantly effect identified riparian or other sensitive natural plant communities or adversely effect federally protected wetlands: Facts: According to the jurisdictional delineation conducted by Tom Dodson & Associates, no riparian or wetland resources occur on the project site. Findings: Therefore, development of the proposed project can not adversely impact such resources. d. Substantially interfere with movement of fish or wildlife species, a migratory wildlife corridor or wildlife nursery site: Facts: The project site is generally located north of industrial warehousing development, south of the wastewater treatment plant, west of Murrieta Creek and east of the Santa Rosa Plateau. Immediate surrounding land uses are disturbed, annual grasslands to the east, west and north and industrial development to the south. The site has extremely limited habitat value as it is currently heavily impacted by off - road vehicle and rodeo recreational uses. Findings: As such, this site's development has very low potential to adversely impact wildlife movement. e. Conflict with /Deal policies or ordinances protecting biological resources: Facts: There is a single eucalyptus tree with a diameter at breast height greater than six inches on the site. Since this tree is a non-native and not locally significant, the developer is not required to obtain such a permit and no mitigation is required. Findings The only local policy or ordinance that might apply to biological resources on this site is the local tree ordinance, and because the only tree is non-native, the ordinance does not apply. f. Conflict with provisions of an adopted conservation plan: Facts: The project would comply with the SKR Habitat Conservation Plan by paying mitigation fees. At the writing of this initial study, the Riverside County Transportation and Land Management Agency (TLMA) has completed a Draft Western Riverside County Multi -Species Habitat Conservation Plan (MSHCP). The draft plan shows a proposed constrained wildlife linkage adjacent to the subject project site along Murrieta Creek. The plan identifies proposed constrained -16- linkages as a constricted linkage where options are limited because of existing patterns of land use. Murrieta Creek is not depicted on the map of the linkages, but its location and potential to serve as a linkage are consistent with identifying the Creek area as a linkage. The City of Temecula is in the process of developing a trail system along the Murrieta Creek in conjunction with the City of Murrieta that further supports establishing the creek easement as a linkage. Findings: Development of the proposed project does not conflict with the provisions of any habitat conservation plan. The project as proposed would also not conflict with the establishment of a habitat linkage along Murrieta Creek. 8. Mineral Resources a. Result in the loss of availability of a known mineral resource: Facts: There are no mineral resource designations nor any known mineral resources on this project site. The General Plan, page 5-20, indicates that the area within the City's boundaries, including the project site, have been assigned a zoning classification of MRZ-3 by the State Geologist ("Mineral Land Classification of the Temescal Valley Area, Riverside County, California, Special Report 165"). The MRZ-3 classification is a designation indicating that sedimentary deposits occur in the area but these areas do not contain sand and gravel deposits of significant economic value based on the available data. Findings: Based on the available data, no mineral resources occur on the project site and the project will not affect the availability of any known mineral resource. b. Result in the loss of availability of a locally important mineral resources recovery site: Facts: Development of the site has no potential to lose access to known and available mineral resources since none are known to occur on the project site, nor is access required across the site to such resources. Findings: Based on the available data, no mineral resources of local importance occur on the project site and the project will not affect the availability of any known local mineral resources. 9. Hazards and Hazardous Materials a. Create significant hazard to the public or the environment through routine transportation, use, or disposal of hazardous materials: Facts: The proposed project will consist of education, retail, office and residential uses that do not involve any potential for routine transport or use of hazardous materials or routine generation of hazardous wastes. Findings: Therefore, the proposed project cannot create a significant hazard to the public or the environment through its implementation. -17- b. Create a significant hazard to the public or environment through reasonably foreseeable upset and accident conditions through release of hazardous materials to the environment: Facts: Adjacent industrial uses include light industrial warehouses and the Rancho California WWTP, and based on the type of uses on adjacent properties, little or no potential exists for accidental releases to the environment. The project will result in a less than significant impact due to risk of explosion, or the release of any hazardous substances in the event of accident or upset conditions on the project site. Further, during construction a potential exists to either discover contaminated soil or to accidentally release contaminated soil. Specific, mitigation measures have been identified to address these random accidental exposures or releases. 5.4-1 The developer shall retain an on -call Industrial hygiene firm that will respond Immediately to any discovery of soil contamination during grading to determine the nature of the contamination. Before proceeding with site development, any discovered contamination shall be treated or removed from the area with residual soil concentrations being reduced to the regulatory thresholds In place at the time of construction. The contaminated material shall be managed In a manner that does not expose employees or other humans to significant health hazards and shall be either treated or removed from the site so that It no longer poses any hazard. 5.4-2 Man accidental spill occurs during construction, the developer shall halt construction in the area of contamination; limit the area of contamination to the maximum exlent feasible; collect all contaminated soil at the site to either background levels of contamination or to the appropriate regulatory standard of allowed contamination; transport the material to a licensed treatment or disposal facility. Findings: Since no significant quantities of hazardous materials will be used or hazardous wastes generated on the site, no potential exists for significant impacts to the environment from upset or accidental release conditions from long-term onsite operations. During construction the implementation of the mitigation measures outlined above will be sufficient to ensure that hazards from discovery or release of contaminants can prevent exposure of the environment or people to significant health risk. C. Emit hazardous emission or handle hazardous materials or substances within 114 mile of a proposed school. Facts: The proposed project will result in the location of a health risk sensitive use in an area that stores and uses chemicals which can create a health risk hazard under accidental release conditions. The potential for a significant accidental release to the environment is considered low because the facilities have been designed and are managed to minimize such releases and potential fire hazards. However, the risk of exposure is an unavoidable adverse impact that must be mitigated by measure 5.4-3 (above) to ensure that evacuation from the site can proceed quickly enough to be protective of human health. This measure reads: 5[" 5.43 Prior to occupancy the developer shall submit an evacuation plan for the Temecula Education Complex (TEC) to the City Fire Department for review and approval. Thi's evacuation plan shall include provisions for relocating the occupants of the site to a safe location at an appropriate distance from an accidental release. The performance standard to be achieved by the TEC evacuation plan MY be to include a response time for initiating relocation within two minutes folPowing notice to the occupants to evacuate and a means of informing the occupants (such as an alarm systems Onsite managers shall be available to d/fact occupants away from the accidental release in accordance with the evacuation plan. Findings: With implementation of the mitigation measure 5.4-3, the potential exposure to hazards will be reduced to a less than significant level of impact. d. Located on a site which is included on a list of hazardous materials sites, and would create a significant hazard to the public or environment. Facts: The project site is not identified as a contaminated site under Government Code Section 65962.5. Findinas: With no contaminated site, the proposed project can not create a significant hazard to the public or environment. e. For a project located within an airport land use plan would the project result in a safety hazard for people residing or working in the project area: Facts: The project: site is not near any airport or private air strip. Finding: Therefore, it has no potential to adversely impact airport operations or be impacted by such operations. L For a project located near a private airstrip within an airport land use plan would the project result In a safety hazard for people residing or working in the project area: Facts: The project: site is not near any airport or private air strip. Findings: Therefore, it has no potential to adversely impact airstrip operations or be impacted by such operations. g. Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan: Facts: The site is located at the end of an existing road at the City's northern boundary. New roads will provide adequate emergency access to the site and no specific City emergency response plan or evacuation plan affects the project area. Findings: The project site has no potential to modify or adversely affect an adopted emergency response plan or evacuation plan. -19- h. Expose people or structures to a significant risk or loss, from wildland fire hazards: Facts: The project site does not contain any wildland fire hazard onsite based on a lack of any vegetation to create a fuel load. In addition, due to the surrounding urban development this fire hazard is not considered significant. Findings: Based on the lack of fuel load, the project will not expose people or structures to significant wildland fire hazards. 10. Noise a. Expose people i!o severe noise levels in excess of standards: Facts: A 65 CNE:L (Community Noise Equivalent Level ) has been adopted as the maximum exterior noise level acceptable for type of uses in the project area. Background noise levels in this area are expected to be below the 55 dBA CNEL level because little or no traffic occurs in the project area and no stationary sources of noise presently occur in the immediate project area. In the short-term, construction activities will be the only source of noise at the project site. Routine construction activities are loud, rising to 90 dBA over short periods, but by implementing standard mitigation during construction (outlined below), construction noise impacts can be controlled so they do not present a significant or severe noise impact. If piles must be installed as part of foundations for the taller structures proposed on the project site, then severe noise will be generated that could adversely impact construction employees and nearby industrial uses. Mitigation for this severe noise shall include the following: 10.a-1 All severe noise generation (noise sources above 90 dBA) shall be restricted to daylight hours between 7 a.m. and 6 p.m when there are occupied dwelling units within 114 mile of site construction. 10.a-2 All occupied properties within 800 feet of the project site (this represents the point where 30 dBA of noise attenuation will occur) shall be notified of the severe noise generating activity (such as pile driving) and a noise complaintfresponse program established. If complaints are received, noise barriers shall be installed between the noise source and the receptor to reduce noise to an level. 10.a3 If pile driving or comparable noise/vibration activities will occur during construction, businesses within 114 mile will be notified of this activity prior to initiating such construction activity. Once the project site is occupied, the activities will include new traffic, educational activities, an outdoor amphitheater, residential, retail and office uses. None of these activities, except possibly the use of the outdoor amphitheater for concerts, consists of activities that could generate severe noise levels that would impact existing or future residential uses. In the event that outdoor concerts are held at the amphitheater, the noise levels shall be controlled and mitigated in the following manner. -20- 10.a-4 Noise levels during concerts shall be controlled such that the nearest sensitive noise receptor is not exposed to continuous noise levels of 65 dBA during a concert and transient noise levels at the receptor shall not exceed 80 dBA, which with an assumed 20 dB attenuation In a structure will not exceed the 60 dBA exterior threshold established by the City for sensitive uses. Findings: With implementation of the above measures, the potential for exposing sensitive uses, such as future residential uses on the campus, to severe noise levels will be controlled to a less than significant level of impact. b. Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels: Facts: If pile driving activities are required to support structures, a potential exists to expose employees of adjacent businesses to excessive groundborne vibration and/or groundborne noise levels. Pile driving activities do not cause significant groundborre vibration or noise levels, but mitigation is required to prevent such vibration or noise from causing harm to persons. The following measure will be implemented: 10.a3It pile driving or comparable noisaMbration activities will occur during construction, businesses within 114 mile will be notified of this activity prior to initiating such construction activity. Findings: With implementation of the above measure the potential for exposing people to significant groundborne vibration or noise will be controlled to a less than significant level of impact. C. Substantial permanent increase in ambient noise levels in the project vicinity above ambient levels: Facts: Once the project site is occupied, the activities will include new traffic, educational activities, an outdoor amphitheater, residential, retail and office uses. None of these activities, except possibly the use of the outdoor amphitheater for concerts, consists of activities that could generate severe noise levels that would impact existing or future residential uses. In the event that outdoor concerts are held at the amphitheater, the noise levels shall be controlled and mitigated in the following manner. 10.a4 Noise levels during concerts shall be controlled such that the nearest sensitive noise receptor Is not exposed to continuous noise levels of 65 dBA during a concert and transient noise levels at the receptor shall not exceed 80 dBA, which with an assumed 20 dB attenuation in a structure will not exceed the 60 dBA exterior threshold established by the City for sensitive uses. Findings: With implernentation of the above measure the potential for permanent significant noise effects from project implementation can be controlled to a less than significant level. d. Substantial temporary or periodic increase In ambient noise levels above ambient noise levels: -21- Facts: During construction, noise levels will be associated with construction equipment and activity during grading and construction of individual structures. The greatest potential for conflict between noise sensitive uses and construction activities will occur after the residential uses are constructed on the project site and new building construction activity is initiated. The following mitigation measures (including measures 10.a-1 and 10.a-2) will be implemented during construction to reduce potentially significant noise impacts to a level of nonsignificance. f0.b-1 Construction shall be limited to the hours of 7 a.m. to 7 p.m. on Monday through Friday, and between 9 a.m. to 6 p.m. on Saturday, and shall be prohibited on Sundays and federal holidays, except In emergencies, for phases that follow construction and occupation of the onsite residential units. 10.b-2 Utilize construction methods or equipment that will provide the lowest level of noise impact, le., use newer equipment that will generate lower noise levels. 10.b-3 All construction vehicles and fixed or mobile equipment shall be equipped with properly operating and maintained mufflers or sound attenuation devices, as specified In i egulations at the time of construction. 10.b-4 Schedule thin construction such that the absolute minimum number of equipment would be operating at the same time. Current background noise levels are relatively low due to the lack of overall human activity at this site, except, of course, during off -road vehicle and rodeo events. The low level of traffic projected for this area (ultimate trip generation is 10,435 trips by year 2010) and the type of activities (educational, residential, commercial, and office uses) do not consist of activities that could cause significant noise levels. However, the level of noise associated with the occupancy of the site will increase and periodically, amphitheater uses may cause higher levels of noise. The sensitive uses of the site, educational and residential, could periodically be exposed to significant background noise levels, including transient noise associated with music concerts. To protect these onsite sensitive uses from unacceptable levels of noise, the following mitigation shall be implemented. 10.b-6The residential and educational buildings shall be constructed with additional noise attenuation features, including more insulation, better sound attenuation walls and double paned windows or equivalent. The educational and building design shall Include sufficient noise attenuation features to reduce noise levels within occuplable rooms to less than the 60 dBA noise threshold. Findings: With implementation of the above measures, no significant adverse temporary or periodic noise impacts will result from implementing the proposed project. e. Would the project expose people to excessive noise levels from airport operations: Facts: The project: site is not located near an airport. Findings: Therefore, it has no potential to be exposed to significant airport operation noise impacts. i Would the project expose people to excessive noise levels from private airstrip operations: -22- Facts: The project site is not located near a private airstrip. Findings: Therefore, it has no potential to be exposed to significant airstrip operation noise impacts. 11. Public Services a. Would the proposal have an effect upon or result in the need for new or altered fire protection services: Facts: Development currently extends to the southern boundary of the -31.1-acre project site. All utilities and services are already available at the project site. The development of the proposed land uses, consisting of educational, residential, commercial, office and recreational activities, will result in a small incremental increase for public services, including fire protection services. Based on a review of the GPEIR, the City's fire protection impacts from developing the proposed project can be mitigated to below a significant level by implementing mitigation identified in that docurnent. These measures include: Fire Service, Measures 1 and 2. In addition the: payment of Development Impact Fees will further reduce the impacts to the above listed services to a level of nonsignificant impact. Findings: With implementation of these measures, the proposed project can be implemented without causing or contributing to a significant cumulative fire protection services impact. b. Would the proposal have an effect upon or result in the need for new or altered law enforcement services: Facts: Development currently extends to the southern boundary of the -31.1-acre project site. All utilities and services are already available at the project site. The development of the proposed land uses, consisting of educational, residential, commercial, office and recreational activities, will result in a small incremental increase for public services, including law enforcement services. Based on a review of the GPEIR, the City's law enforcement service impacts from developing the proposed project can be mitigated to below a significant level by implementing mitigation identified in that document. These measures include: Police Service, Measures 1-4. In addition the payment of Development Impact Fees will further reduce the impacts to the above listed services to a level of nonsignificant impact. Findings: With implementation of these measures, the proposed project can be implemented without causing or contributing to a significant cumulative law enforcement services impact. C. Would the proposal have an effect upon or result in the need for new or altered school capacity: Facts: Development currently extends to the southern boundary of the -31.1-acre project site. All utilities and services are already available at the project site. The -23- development of the proposed land uses, consisting of educational, residential, commercial, office and recreational activities, will result in a limited incremental demand for school capacity (280 multi -family units). Based on a review of the GPEIR, the: City's impacts on schools from build out of the City can be mitigated to below a significant level by implementing mitigation identified in that document. These measures include: Education, Measures 1-6. In addition the payment of mandatory school impact fees will further reduce the impacts to the above listed services to a level of nonsignificant impact. Findings: With implementation of these measures, the proposed project can be implemented without causing or contributing to a significant cumulative school capacity impact. d. Would the proposal have an effect upon or result in the need for new or altered park and recreation services: Facts: Development currently extends to the southern boundary of the -31.1-acre project site. All utilities and services are already available at the project site. The development of the proposed land uses, consisting of educational, residential, commercial, office and recreational activities, will result in a small incremental increase for public services, including park and recreation services. Based on a review of the GPEIR, the City's park and recreation service impacts from developing the proposed project can be mitigated to below a significant level by implementing mitigation identified in that document. These measures include: Park and Recreation Service Measures 1-8. In addition the payment of Development Impact Fees will further reduce the impacts to the above listed services to a level of nonsignificant impact. Findings: With implernentation of these measures, the proposed project can be implemented without causing or contributing to a significant demand for park and recreation impact. e. Would the proposal have an effect upon or result in the need for new or altered public facilities not already addressed. Facts: No impact on any other public facilities or services was identified from project imple- mentation. Findings: With no other public facilities or services impacted, no adverse impact can occur. 12. Utilities and Service Systems a. Would the project exceed wastewater treatment requirements: Facts: The proposed project will generate and deliver wastewater to the regional wastewater reclamation facility (RWRF) in Temecula Valley. The facility is operated by Eastern Municipal Water District (EMWD) and it is located just south of the project site. The facility currently has a secondary treatment capacity of 8 million gallons per day (mgd) and a tertiary treatment capacity of 10 mgd. The residential wastewater generation is estimated to be 250 gallons per day per unit (Equivalent -24- Dwelling Unit, EDU) for a total generation of 73,750 gpd. The commercial, industrial and educational uses will generate about 10 EDU of wastewater flow per acre. Assuming 30 acres of this type of use, this is equivalent to 300 EDU, or 75,000 gpd. Total estimated volume of wastewater from this proposed project is 148,750 gpd. The EVWD RWRF is designed to be expanded incrementally up to between 49 and 54 gpd of treatment capacity per day. Expansions are funded by connection fees and expansions are planned and installed with sufficient capacity to ensure no deficit of treatment capacity will occur. Findings: Since the facility has adequate capacity at the present and since the project will have to pay standard connection fees, no potential for significant impact to the RWRF is forecast to result from project implementation. Therefore, the proposed project is riot forecast to cause a violation of wastewater treatment requirements, either directly or indirectly. b. Require construction of new water or wastewater treatment facilities or expansion of existing facilities, which could result in significant impacts: Facts: According to the GPEIR, adequate capacity exists within the Rancho California Water District (RCWD) water supply system to provide water supply capacity for the build -out development within its service area of the City of Temecula. The RCWD delivers water to customers from existing groundwater wells, imported water supplies and recycled water (for non -potable purposes). The District's 1997 "Water Facilities Master Plan Update" indicates that additional water supply sources are being implemented to meet the future forecast water demand within its service area of 114,000 acre-feet per year. In a recent evaluation of ability to supply water to other commercial projects (Redhawk Town Center Subsequent EIR), RCWD indicated that it could meet near and mid-term water demands as required under recent state legislation for growth within its service area. The proposed project is forecast to create a demand for 177,000 gpd for residential uses (600 gpd/unit) and based on a water duty of about 2,500 gpd per acre for the approximate 30 acres of commercial, educational and office uses (Table 4-4 of the Plan Update), the remainder of the site will use about 75,000 gpd. Total water consumption is estimated to be up to 252,000 gpd. Findings: Based on the data available, the proposed project will not cause a significant adverse impact on the water supply system, including any need to expand the existing wader treatment, storage and delivery system. Other than mandated requirements for low water consuming fixtures in buildings and a landscape design that minimizes water consumption, there are no mitigation measures that need to be implemented to minimize site development consumption of water in the future. C. Require construction of new stormwater drainage facilities or expansion of existing facilities which could cause significant environmental effects: Facts: The site already drains to the existing regional stormwater system which is across the street. -25- Findin s: The connection of this site to the local collection and regional stormwater system will not cause the need to expand this facility based on detention of storm runoff so future volume of flow from the site does not exceed the current maximum flows. d. Have sufficient water supplies available from existing sources or require acquisitor of expanded entitlements: Facts: The volume of water required to serve the project site is identified under issue 12.b above. Adequate water supplies have been identified by the RCWD to meet the City of Temecula's current and immediate future demands, including the proposed project. This finding is based on data contained in the District's 1997 'Water Facilities Master Plan Update" Findings: Therefore, the proposed proejct will not require new or expanded water entitlements. e. Result in a determination by a wastewater treatment provider that insufficient capacity exists at the wastewater reclamation facility., Facts: Adequate wastewater treatment capacity has been identified by the EMWD Reclaimed Water Master Plan for the City of Temecula's current and immediate future demands, including the proposed project. Finding: Therefore, the proposed project will not exceed EMWD's treatment capacity and require expansion of the existing plant. Be served by a landfill system with adequate capacity: Facts: According to the General Plan and the County Solid Waste Management Plan adequate landfill disposal capacity exists within the regional landfills to meet current and future demands. This is further verified by the County's solid waste management plan. Solid waste mitigation measures identified in the GPEIR (Measures 2 and 3) must be implemented by all projects in the City to meet the City's source reduction requirements. Finding: Adequate capacity exists within the County's solid waste management system to meet the requirements of the proposed project. g. Comply with federal, state and local statutes and regulations regarding solid waste: Facts: By participating in the City's source reduction and recycling element, the proposed project will comply with all statutes and regulations for management of solid waste. The proposed project does not pose any significant or unique management require- ments. Finding: The project: will fully comply with all statutes and regulations regarding solid waste. 13. Aesthetics and'✓isual Resources -26- a. Have a substantial adverse effect on a scenic vista: Facts: The site is located on the valley floor with the backdrop of the Santa Rosa Plateau on the background. All proposed facilities will be installed on the valley floor and no grading, ground disturbance or facilities will extend onto the face of the Plateau's front ridge. The City reviewed the proposed facilities looking at the background setting. The maximum height will be 50+ feet and due to the background front slope of the Santa Rosa Mountains, the new structures will not be skylined against the background sky. In addition, several structures already exist on the lower slopes of the front slope that are 50 to 100 feet above the alluvial terrace where the TEC facilities will be installed. Findings: Given the already disturbed visual setting with light industrial structures at a height greater than the proposed facilities, the City concluded that the TEC facilities will not cause is substantial change in the visual setting. As a result, no scenic vistas will be adversely impacted at the project location from developing the proposed project based on the lack of intrusion into a scenic vista. b. Substantially damage scenic resources: Facts: The projectt site has no major scenic resources. The site has one eucalyptus tree, and no rock outcroppings or historic buildings. The project site is not located on a scenic highway. In fact, historic use of this site for off road vehicle and rodeo activities has denuded most of the site and created a chopped up visual setting. Findings: Because the project must meet City design requirements, including those outlined in the Community Design Element of the General Plan, no adverse damage to any existing scenic resources will result from the project's implementation. C. Substantially degrade the existing visual character or quality of the site and its surroundings: Facts: As noted in the previous discussions, the project site is highly disturbed and contains a relatively damaged scenic quality in its present condition. The proposed project must be constructed to conform with the City's community design guidelines as referenced above. located adjacent to existing multi -family apartment units. Mitigation is outlined below to ensure that City-wide design guidelines are implemented. 13.c-1 The design of the campus structures and open spaces shall conform with the City-wide design guidelines and requirements. Findings: Based on lthe requirement to meet these design guidelines, the proposed project has no potential to substantially degrade the existing visual character of the site and surroundings. d. Create a new source of substantial light or glare which would adversely affect day or night views of the area: -27- Facts: The proposed project will contain substantial safety night lighting sources consistent with its use for class rooms during the evening, as well as daytime, hours. Like all projects within the area, this project must meet Ordinance 675 requirements of no conflict with the continued use of the Palomar Observatory. Due to the site's location, there is no potential for light or glare to adversely impact any light sensitive areas (residences), nor is there a potential to create light or glare impacts that would adversely impact a major roadway or highway. Findings: Therefore, the project has no potential to create significant light and glare impacts onsite or impacting the surrounding area and uses. 14. Cultural Resources a. Cause a substantial adverse change in the significance of a historical resource: Facts: A detailed cultural resources study was conducted at the project site and no historical resources were identified as occurring on the project site. Findings: Therefore, the proposed project has no potential to cause a substantial adverse change in the significance of any historical resource. b. Cause a substantial adverse change in the significance of an archaeological resource: Facts: The project: site is considered to be within a portion of a known archaeological site. CA-RIV-237 is one of a few Contact or Late Prehistoric Period, LuiseCo habitation or village sites which may not have been completely destroyed. Implementation of this project may contribute to the cumulative destruction and alteration of such sites. CA-RIV-237 has, however, undergone substantial adverse change by previous development and this project site occupies a relatively small portion of the known original site. Extensive mitigation, including additional measures identified in com- ments from the Pechanga Tribe, require additional management actions to be implemented prior to ground disturbance, incluiding hand excavation, monitoring of grading, artifact analysis, and documentation of findings has been provided. These measures include: 5.5-1 The City shall require the project developer to retain an archaeological consultant and tribal monitors to prepare and implement a plan for an Intensive data recovery operation by hand excavation, artifact analysis and report preparation such that potential information can be salvaged prior to the start of site grading. 5.5-2 The City sliall require the developer to Implement a mitigation plan for cultural resources. The scope and extent of the mitigation plan shall be determined by consultation between City staff, Pechanga Band of Lulse0o Mission Indians representatives, and the archaeological consultant for the project. 5.5-3 The City shall require that site grading be monitored by a qualified archaeologist Tribal monitors designated by the Pechanga Band of Lulse6o Mission Indians shall also monitor site grading if required by the tribe. The monitors shall have the aulhority to halt and relocate construction activities If subsurfaces resources are encountered. Pechanga Tribal monitors will be allowed to monitor all archaeological surveys, tests and studies. The results of the surveys, tests K-1 and/or studies will be utilized to define what areas may require avoidance on the, site and the specifics of how any recovered artifacts shall be managed with the Tribe, as mutually agreed upon by the City and its technical staff. 5.5-4 Prior to Issuance of a grading permit, the project developer shall enter Into an Agree- ment with the Pechanga Band of Lu1se0o Indians that addresses the treatment and disposition of all cultural resources and human remains that may be Impacted as a result of this development 5.55 The City and site developer agree to relinquish ownership of all cultural resources, Including all archeological artifacts that are found on the project site, to the Pa.hange Band of LuiseVo Indians for proper treatment and disposition. 5.55 The Pechanga Tribe will be allowed to conduct a Phase I survey of the project area In cooperation with the City's qualified archaeologist for the project site. Prior to conducting the survey, the specific individuals from the Tribe and City will be Identified and a Phase I survey methodology will be mutually agreed upon. N doomed necessary by the Pechanga Tribe, the City and Its technical staff, further Phase 11 surveys will be completed prior to Issuance of any grading pea nit. Any Phase ll survey activities will be conducted based on a mutually agreed upon survey methodology and It will be funded by the site developer. Findings: Implementation of these mitigation measures is considered adequate by the City to mitigate both the individual and cumulative potential loss of information at the project site to a less than significant level. C. Directly or indirectly destroy a unique paleontological resources or site or unique geologic feature. Facts: No unique geologic features occur in this area of the City. Figure 55 of the Draft EIR for the City's General Plan indicates that the potential for buried paleontological resources on the western portion of the project site is high. Due to the potential for such resources to occur on the property, the following mitigation measure will be implemented: 14.c-1 During excavation and hillside cutting activities, a qualified paleontological monitor will be present and will have the authority to stop and redirect grading activities to evaluate the significance of any paleontological resources exposed during the greding activity within the alignment If paleontological resources are encountered, adequate funding will be provided to collect, curate and report on these resources to the ensure the values inherent in the resources are ade- quately characterized and preserved. Findings: With implementation of this mitigation measure, no significant loss of paleon- tological resources can occur. d. Disturb human remains, including those interred outside of formal cemeteries: Facts: As a potential village site, the EIR concluded that a potential does exist to disturb human remains during grading of the project site. Such disturbance would be considered a significant impact of the project unless mitigated. Finding: Mitigation measure 5.5-4 above identifies specific measures for addressing the discovery of human remains on the project site. In addition, current law requires the -29- County Coroner to be notified of the discovery of such remains and this requirement will be fulfilled by the project developer. Implementation of these measures, including specific agreements between the Tribe and developer, are deemed sufficient to reduce potential discovery of human remains to a less than significant level of impact. 15. Recreation a. Would the project Increase the use of existing neighborhood and regional parks in a manner that could cause deterioration of such facilities: Facts: There are presently no recreation facilities on the project site, although recreation events (rodeo and motorcycle/tractor activities) are occasionally staged on the property. Onsite recreation amenities will be provided as part of the residential component of the project. The proposed project also includes an amphitheater as part of the project that may be used for recreational purposes. Due to the proposed residential uses, a demand for recreational facilities will be generated by the proposed project. Payment of the recreation component of Development Impact Fee is required for each residential project. These fees will be paid by the proposed project, minus any credits for other onsite recreational facilities. Findings: Based on the inclusion of the outdoor amphitheater feature as part of the proposed project and payment of fees, the project impact on City recreational facilities is not forecast to increase significantly. Further, based on the size of the residential com- ponent of the proposed project (280 units), the cumulative demand for recreational facilities in the City is not forecast to increase substantially from implementing the proposed project. b. Does the project include recreational facilities which might have an adverse physical effect on the environment. Facts: The only recreational facility being proposed at this time is the outdoor amphitheater. Impacts from its construction and utilization of the amphitheater are examined as part of the overall project. Construction impacts may cause noise and air emissions that require mitigation and over the long-term operations may result in noise impacts that also will require mitigation. Mitigation has been identified under air quality and noise to reduce impacts to a less than significant level. Findings: With implementation of noise and air quality mitigation measures, the impact from constructing and operating the amphitheater onsite can be reduced to a less than significant level. Based upon the findings presented in the FEIR, the above described environmental issues have been determined by the City to be: (1) adequately addressed in the FEIR; and (2) impacted to a degree deemed by the City to be less than significant with implementation of the mitigation measures identified above and summarized in the Mitigation Monitoring and Reporting Program. No substantial evidence was subsequently presented to or identified by the City which further modified or otherwise altered the City's less -than -significant impact determination for each of these environmental issues. These changes or alterations have been required in, or -30- incorporated into the project, and they mitigate or avoid the significant environmental effects thereof as identified in the FEIR. These changes or alterations are within the responsibility and jurisdiction of the City of Temecula and such changes have been adopted the City. The City Council further finds that no additional mitigation measures or project changes are required to reduce the potential impacts discussed above to a less than significant level. This concludes the summary of environmental impacts that were identified in the FOR and the Initial Study as nonsignificant impacts with mitigation related to implementation of the proposed project. F. SIGNIFICANT UNAVOIDABLE EFFECTS OF THE PROJECT The Temecula City Council finds that despite the incorporation of extensive changes and altera- tions into the proposed project, approving and implementing the Temecula Education Complex Project will allow two impacts to remain unavoidably significant because these impacts cannot be mitigated to a nonsignificant level. These unavoidable significant adverse environmental impacts are air quality and transportation/traffic. For the TEC Project emissions associated with both construction and operations are forecast to exceed the South Coast Air Quality Management District's thresholds of significant for several pollutants. For traffic, a potential short-term cumulative traffic impact will occur at the intersections surrounding the I- 15/Winchester Road interchange. Substantial improvements are being made in this intersection and ultimately an additional interchange (variously termed Cherry, Date and French Valley) are forecast to mitigate the cumulative circulation system impacts. Regardless, these impacts and the measures identified to minimize them to the extent feasible are summarized below. Thus, the potential for significant effects to occur for this issue would continue to exist regardless of whether or not the project implements the project changes and mitigation measures mandated by the City of Temecula in the FOR. The potential impact to the above listed resources and existing background conditions were concluded to be significant based on the whole record which demonstrated that this impact could not be reduced below thresholds of significance by the proposed project changes to the TEC Project (alternatives, mitigation measures or design changes). To the extent that future TEC development phases generate the emissions forecast from construction activities and mobile sources, approval of the TEC Project contributes to the significant impacts as described in detail below. Thus, despite the incorporation of changes to the proposed project, air quality and circulation system (traffic) impacts cannot be fully mitigated to a level of insignificance and a statement of overriding consideration is thereby included herein. 5. Air Ouality Significant Unavoidable Impact b. Violate air quality standards or contribute substantially to an existing or projected air quality violation. Facts: Since it is assumed that no overlap occurs between construction phases, the maximum construction emissions are those that occur in each phase. Grading emissions of fugitive dust will not exceed the 150 lb/day threshold (about 104 Ibs(day, mitigated). Using the SCAQMD URBEMIS model, the emission data -31- indicate that SCAQMD threshold of significance for VOC and NOx will be equaled or exceeded in Phase I and Phase 111. During Phase 1 the following maximum daily emissions ;are forecast to occur: -32- Table 5.2-9 PHASE I CONSTRUCTION EMISSIONS Pollutant Emission (Ib/day) Carbon Monoxide (CO) 5 Volatile Organic Carbon (VOC) 233' Ni'irogen Oxide (NOx) 305' Particulate Matter (PMio) 21 Exceeds SCAOMD Significance Thresholds. Assuming similar construction schedules and techniques, it is forecast that daily construction emissions for VOC's and NOx will be: Phase 11 VOC NOx Phase 111 VOC NOx 30 Ibs/day 40 Ibs/day 77 Ibs/day 100 Ibs/day VOC and NOx Phase II emissions will be well below thresholds of significance while Phase III emissions will equal significance thresholds for VOC's and NOx. No exceedanca of thresholds are forecast to occur in Phase II. The above construction emission forecast incorporates the following mitigation measures: 5.2-1 The followin;l mitigation measures shall be Implemented throughout construction aclivities In order to reduce project impacts. • Use appropriate emission control devices on gasoline and diesel construction equipment and maintain construction equipment engines by keeping them tuned. • Prohibit idling and other unnecessary operation of equipment. Utilize existing power sources (i.e., temporary power poles) and avoid onsite power generation. • Have sufficient equipment at the site to carry out dust -control measures In all areas covered by the contract work (not just the Immediate area of construcdonA • Employ construction activity management techniques, such as: configuring the construction parking to minimize traffic interference; extending the construction period; reducing the number of pieces of equipment used simultaneously; increasing the distance between the emission sources; and reducing or changing the hours of construction; to minimize construction activity emissions. -33- • Maintain all iovork and access areas free from dust. • Cover loaded trucks used In construction operations with tarpaulins or maintain at least 2 feet of freeload and wash off trucks leaving the site. • Sweep streets if silt is carried over to adjacent public thoroughfares. • Water dust-Sienerating surfaces at intervals to keep all parts of the disturbed area continuously damp. • Water the ailg and clean the equipment In the morning and evening. • Construction operations affecting offsits roadways shall be scheduled for offpeak traffic hours and shall minimize obstruction of through -traffic lanes. • Construction activities should be scheduled to occur first on the upwind portion of the project site to reduce the potential for fugitive dust Impacts in the downwind areas. • Develop a traffic plan to minimize traffic flow Interference from construction activities including advance public notice of routing. Use low VOC asphalt and coatings. 5.2-2 The proposed project shall submit a plan to control fugitive dust through Implemen- tatron of reasonably available dust control measures. It shall be prepared and submitted to the City of Temecula for approval prior to the Issuance of any greiding permits associated with the project The plan shall specify the fugitive dust control measures to be employed, Including the above measures at a minimum. 5.2.3 The project proponent shall comply with all applicable SCAOMD Rules and Regulations. In particular, SCAOMD Rule 403 shall be adhered to, insuring the clean up of construction -related dirt on approach routes to the site. Rule 403 prohibits the reloase of fugitive dust emissions from any active operation, open storage PRO, or disturbed surface area beyond the property line of the emission source. Particulate matter deposits on public roadways are also prohibited. 5.2-4 Adequate waitering techniques shall be employed to partially mitigate the Impact of construction -generated dust particulates. Portions of the project site that are under -going earth moving operations shall be watered such that a crust will be formed on the ground surface and then watered again at the and of the day. 5.25 Any vegetative ground cover to be utilized onsits shall be planted as soon as possible to reduce the disturbed area subject to wind erosion. Irrigation systems needed to iovater these plants shall be installed as soon as possible to maintain the ground cover and minimize wind erosion of the soil. 5.2-5 Any construction access roads (other than temporary access roads) shall be paved as soon as possible and cleaned after each work day. The maximum vehicle speed limit on unpaved roads shall be 15 mph. 5.2-7 Grading open ations shall be suspended during first and second stage ozone episodes or when winds exceed 25 mph. 5.2-8 Any construction equipment using diesel drive Internal combustion engines shall use a diesel fuel with a maximum of 0.05 percent sulfur and a four degree retard. -34- 5.2-9 Construction personnel shall be Informed of ride sharing opportunities and an incentive program shall be Implemented by the contractor. 5.2-10 Building construction shall comply with the energy use guidelines In Title 24 of the California Administration Code. 5.2-11 Where vehicles leave the construction site and enter adjacent public streets, the streets shall be swept daily or washed down at the end of the work day to remove soil tracked onto the paved surface. 5.2-12 All diesel -powered vehicles and equipment shall be operated with the fuel injection timing retarded 2 degrees from the manufacturer's recommendation and use high pressure Injectors. 5.2-13 All diesel-po wered vehicles shall be turned off when not in use for more than 30 minutes and gasoline - powered equipment shall be turned off when not in use for more thsin five minutes. 5.2-14 The constrw;tlon contractor shall utilize electric or natural gas powered equipment in Ilea of gasoline or diesel powered engines, where feasible and where economically competitive. 5.2-15 The construi;tion contractor shall utilize as much as possible precoated/natural colored building materials, water based or low VOC coating, and coating transfer or spray equipment with high transfer efficiency, such as high volume low pressure (HVLP) spray method, or manual coatings application such as paint brush, hand roller, trowel, spatula, dauber, rag, or sponge. Table 5.2-12 shows that operational/occupancy air emissions for PM,o are below CEQA thresholds, and therefore would not have a significant impact to air quality. However, 00, NOx and VOC emissions would be higher than CEQA thresholds during operation of the project, and are therefore potentially significant. Table 6.2-12 TOTAL MITIGATED OPERATIONAL EMISSIONS FROM TEC PROPERTY (Pollutant Emission (lb/day)' (mitigated) AOMD'CECA Threshold (IbIday) Carbon Monoxide (CO) 638.4" 550 Volatile Organic; Carbon (VOC) 75.2" 55 Nitrogen Oxide (NOx) 76.6" 55 Particulate Matter (PM,o) 28 150 Sum of the emissions from Table 5.2-9, Table 5.2-10, and Table 5.2-11. Data exceeds the threshold. The following mitigation measures will be implemented to reduce operational emissions. 5.2-16 The following measures shall be Implemented in order to reduce the project operational Impacts. The percent reduction for each measure Is provided. Orient building to North/South direction to reduce the energy usage. 35% -35- • Trip reduction by good transit infrastructure measures. 15% • Trip reduction by pedestrian enhancing infrastructure measures for residential and non-residential. 2% • Trip reduction by bicycle enhancing infrastructure measures for residential and non-residential, 7% • Provide transit shelters benches. 2% Finding: The majority of the operational emissions are associated with mobile sources. Four of the five identified mitigation measures are trip reduction measures, which will reduce the emissions of all pollutants associated with mobile sources. These measures are estimated to have a combined effectiveness of 35 percent reduction in trips and resulting emissions. The first measure will reduce energy consumption associated with heating and cooling. All identified mitigation measures will be applied to the proposed project. As shown on Table 5.2-10, even with mitigation, CO, VOC and NOx mobile source emissions remain significant. Mitigated operational emissions for this development are shown on Table 5.2-11. After implementing the above mitigation measures, both construction and operational air quality emissions cannot be reduced to a level of insignificance when compared to the SCAQMD Handbook emission thresholds. C. Result in a cumulatively considerable net increase of any criteria pollutant for which the project region Is non -attainment under an applicable federal or state ambient air quality standard: Facts: Please refer to issue 5.b above for the detailed facts about the emissions of criteria pollutants which exceed thresholds. NOx and VOC emissions contribute to ozone and particulate non -attainment. CO and NOx emissions do not contribute to violations of either of these criteria pollutants. CO concentrations are a function of the number of vehicles, length of time they are idling, and the background or ambient CO concentrations. The nearest SCAQMD air quality monitoring station to the project site that monitors CO is the Lake Elsinore Station (4158). Data provided on Table 5,2-1 of this EIR reveals that the highest 1-hour concentration measured in 2002 was 3 parts per million (ppm). The standards are >35 ppm federal and >20 ppm state. The maximum 8-hour CO concentration was 2 ppm. The closest approximation for road type is the local (several hundred vehicles during the peak hour) and the maximum 1-hour CO concentration is 1.2. Thus, the screening technique indicates that the project plus background would be 4.2 ppm, well below the 20 ppmi 1-hour standard. Using the highest persistence factor in Chapter 9, page 9-11 of the Handbook, 0.8 (which is consistent with the measured values referenced above), the 8-hour concentration would be 3.4 ppm, well below the 8- hour 9.5 and 9.0 ppm standards, federal and state respectively. Finally, the PM10 emissions during construction also exceed thresholds and contribute to PM10 non - attainment in the South Coast Air Basin. Findings: After implementing the above mitigation measures, both construction and operational air quality emissions cannot be reduced to a level of insignificance when compared to the SCAQMD Handbook emission thresholds. d. Expose sensitive receptors to substantial pollutant concentrations: -36- Facts: The only pollutant with a potential to affect sensitive receptors are particulates, particularly fugitive dust. Extensive fugitive dust controls (mitigation measures) outlined above reduce dust emissions to a less than significant level. Findino: Based on the air quality data in the FEIR, the proposed project will not expose sensitive receptors to significant pollutant concentrations, directly or indirectly. 6. Transportationfrraffic a. Cause an Increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system: Facts: A project specific traffic study was prepared for the TEC Project. The following is a summary of the study's conclusions: The project will generate about 10,435 daily vehicle trips at buildout. About 576 vehicle trips will occur in the AM peak hour with about 991 vehicle trips projected to occur within the PM peak hour. 2. The project will contribute to the decline in level of service at the following study urea intersections to below LOS "D" if identified roadway improvements are not provided. Diaz Road (NS) at: Winchester Road (EW) Jefferson Avenue (NS) at: Winchester Road (EW) 1-15 Freeway SB Ramps (NS) at: Winchester Road (EW) 1-15 Freeway NB Ramps (NS) at: Winchester Road (EW) Ynez [load (NS) at: Winchester Road (EW) 3. The project will contribute to the need for traffic signals at the following study area intersections in the Year 2008: Diaz Road (N/S) at: Campus Parkway (EW) Flemington Avenue (EW) 2'evo Drive (EW) The following are the mitigation measures available to the proposed project to reduce the cumulative traffic impacts that exceed the City's thresholds of significance. -37- 5.3-2 Finding: 5.3-1 The City shall require the developer to participate on a fair share basis the Installation of traffic signals at the following intersections when warranted., Diaz Road ® Campus Parkway Diaz Road ® Remington Avenue Diaz Road ® Zevo Drive Development of the TEC shall Include provision of an onsite mass transit facility or center. This facility shall be designed in consultation with the Riverside Tninsit Authority to provide safe convenient service to the proposed facilities. The proposed project will contribute to the generation of additional traffic on local and regional roadways. The project, however, is consistent with the land use and density for the site as identified in the City's General Plan and is consistent with the General Plan's circulation element. The City of Temecula, the Western Riverside Council of Government, and the Southern California Association of Governments have developed plans and policies that are intended to guide the type and location of growth in population and traffic. The growth and management programs and policies have been partially developed using the General Plans of local jurisdictions. Development that is compatible with the General Plan is therefore considered consistent with the regional population and traffic growth management programs. Based on projected growth, these agencies have developed plans to control and mitigate regional transportation impacts to acceptable levels. The City of Temecula participated in the regional transportation plans by implementing the goals and policies and requiring that projects provide a fair share contribution to the regional mitigation plan. Compliance with these local and regional plans has been judged adequate to reduce the cumulative impacts to the transportation system to acceptable levels. Thus, over the long term the circulation system is forecast to be adequate to meet the build out trip generation within the City. However, the analysis contained in the TIA determined that available roadway improvements in the study area will be needed either with or without this project. The TIA also determined that even with available mitigation, these roadway improvements will not be adequate to maintain a LOS "D" or better condition at certain study area intersections either with or without the proposed project, in the near term future. The with project evaluation determined that the level of service at certain intersections would decline below the levels identified under the without project alternative. Note that improvements already scheduled may improve the affected intersection sufficiently to avoid a significant impact, but the timing and implementation of these improvements cannot be controlled by the City or the project developer. According to the City of Temecula, the primary roadway improvement that could mitigate congestion at study area intersections is the extension of Cherry Street to the proposed French Valley Parkway Interchange at the 1-15 Freeway. This new roadway would provide an additional crossing of Murrieta Creek and access to the freeway and areas easterly of the freeway, thus relieving congestion on existing roads. However, this roadway is in the planning stages and there is no assurance it will be constructed prior to initiating operations at the TEC Project. K-2 Thus, the proposed project will make a relatively small but cumulatively significant contribution to the further decline in the level of service at study area intersections. This impact can ultimately be mitigated, but in the short-term a potential for significant circulation impacts is forecast to occur. b. Exceed, either individually or cumulatively, a level of service standard established for the affected roads or highways: Facts: Please refer to the discussion under a above. Findings: Based on the traffic study compiled for the TEC Project, the proposed project will make a relatively small, but cumulatively significant, contribution to the further decline in the level of service at study area intersections. This impact can ultimately be mitigated, but in the short-term a potential for significant circulation impacts is forecast to occur. The City finds that it is not possible to provide for full implementation of the proposed project without causing the unavoidable adverse impacts summarized above. The City further finds that no additional measures are known that can further reduce the air quality and traffic impacts that will result from implementing the proposed project. Therefore, the City concludes that the proposed project will contribute to unavoidable, significant adverse air quality and traffic effects if it is implemented. Based upon the findings presented in the Final EIR, the above described environmental issues have been determined by the City to be: (1) adequately addressed in the FEIR; and (2) impacted to a degree deemed by the City to be significant and unavoidable even after implementation of the mitigation measures identified above and summarized in the Mitigation Monitoring and Reporting Program. No substantial evidence was subsequently presented to or identified by the City which further modified or otherwise altered the City's significant and unavoidable impact finding with mitigation determined for each of these environmental issues. This concludes the summary of environmental impacts that were identified in the FEIR and the Initial Study as unavoidable significant adverse impacts with mitigation related to implementation of the proposed project. G. ALTERNATIVES TO THE PROPOSED ACTION The California Environmental Quality Act (CEQA) requires discussion of reasonable project alternatives that could feasibly attain the project's objectives (14 CCR §15126(d)). CEQA requires that an EIR evaluate a reasonable range of alternatives to the project, or to the location of the project that: (1) offers substantial environmental advantages over the proposed project, and (2) may be, feasibly accomplished in a successful manner and within a reasonable period of time considering the economic, environmental, legal, social, and technological factors involved. The basic objective of the TEC Project is to provide facilities to consolidate post -secondary education for the Murrioata-Temecula region. Under present conditions post -secondary education is provided at a variety of facilities in the region, or local students must travel outside -39- the area (to San Marcos, Riverside, Menifee, etc.) to attend classes. By constructing a satellite facility to meet this essential post -secondary educational need, including supporting facilities (such as day care, commercial and residential facilities), the City will create a campus -like environment that will make obtaining post -secondary education easier and better supported in the community. In addition to the higher education objective, the proposed project will also provide affordable housing in the City of Temecula. Presently, no affordable housing exists in the northwesterly portion of the City and this project provides the opportunity to remedy this situation by the provision of 50 such housing units on RDA owned property. Additional objectives are to provide housing and retail opportunities in a portion of the City which is developing without such uses. The TEC will also provide housing, daycare, retail and educational opportunities to people working in the developing northwesterly portion of the City. The objectives identified in the EIR must be fulfilled in order for an alternative to provide a feasible and reasonable alternative to the proposed project. The FEIR for the TEC Project considered two alternatives to the proposed action. These alternatives were defined based on mandatory requirements and alternatives designed to reduce the identified significant impact of the project: historical resources. Based on the project objectives referenced above, neither alternative was considered to be technically feasible and they were rejected from further consideration based on failure to meet the fundamental project objectives. The four alternatives that were subject to comparative evaluation in the FEIR with the proposed action are: 1. No Project 2. Alternative Location 3. Senior Housing Project 4. Government Offices with Affordable Housing Project The purpose in analyzing alternatives to a proposed project is to determine if an alternative is capable of eliminating or reducing potential significant adverse environmental effects, "even if these alternatives would impede to some degree the attainment of the project objectives, or would be more costly" l,State CEQA Guidelines, Section 15126(d)(3)). The following discussion summarizes the FEIR evaluation of each of these alternatives in determining whether they are feasible alternatives to the proposed action (State CEQA Guidelines, Section 15126(d)) and whether an alternative can eliminate or substantially lessen significant impacts described in this document for the proposed action. a. No Projecl' Alternative: Under this alternative, the TEC Project would not receive any of the proposed entitlements, such as the Conditional Use Permit, Development Plan, Disposition and Development Agreement. Because there are no approved plans or entitlements for the site, the no project alternative assumes the site is undeveloped and remains in its current condition. If the TEC Project is not developed and higher education activities would continue to occur as they do under current conditions. This means that air emissions related to current and future vehicle trips to existing higher education classes, both in the area and out of the area, would continue to occur. Although not quantifiable, the emissions associated with the same number of students are assumed to be comparable or greater because of the need to drive out of the Murrieta-Temecula region to one of several colleges and universities that would hold classes at the TEC Project site. -40- Regarding traffic impacts, the same number of trips would occur on the regional and local circulation system, but these trips would not be concentrated at the existing Winchester/1-15 interchange and at the future Cherry/Date/French Valley/1-15 interchange. Retaining the existing higher education situation could reduce the short-term project related circulation impacts, but the cumulative short-term impact is forecast to continue to occur until a new interchange is constructed to serve the project area. The No Project Alternative would also eliminate all construction related impacts and those nonsignificant impacts that would result from the project, including those impacts, such as cultural resources, thal require extensive mitigation to achieve a less than significant level of impact. However, the no project alternative would not meet the basic objectives of the City's General Plan (development compatible with the PI land use designation) nor that of the City's Redevelopment Plan and the AGK Group. The RDA's objective are to provide affordable housing and higher educational facilities on the site in the City of Temecula. The AGK Group's objectives are to provide housing and retail and professional facilities within a portion of the City which currently does not have such facilities or services. Because the no project alternative cannot meet any of the basic objectives of the proposed project, it is not considered a feasible alternative to the proposed project. b. Alternative Location: The proposed TEC could theoretically be developed at alternative locations within the City of Temecula. However, the California Supreme Court determined that examination of infeasible alternatives need not be given exhaustive evaluation. The Temecula Education Complex is designed to provide a mixed use development on RDA property that is consistent with the City's General Plan. The project site is the only undeveloped parcel of adequate size owned by the RDA which has the appropriate land use designation. It is not feasible to meet the objectives of the project at another location because no other site of adequate size which is owned by the RDA with the appropriate land use designation exists within the City. Within the context of Section 15126.6(f)(1), the project site is the only vacant site that is owned by the RDA and that meets the general plan consistency for the proposed TEC and the mix of uses proposed. Therefore, the alternative of implementing the proposed project at another location is not considered a reasonable or feasible alternative to the proposed project and will not be given further consideration. C. Senior Housing Project: The senior housing only project could meet one but not all of the project objectives. As previously stated, one of the RDA's objectives is to provide housing on this site in compliance with the City's Redevelopment Plan goals. The AGK Group's objectives also includes provision of housing on the site. Section 17.12.030 of the City's Development Code identifies senior housing as a permitted use of the Public Institutional (PI) land use designation subject to approval of a Conditional Use Permit (CUP). Senior housing is a permitted use in the High Density Residential Zoning district of the Land Use Element of the City's General Plan. Section 17.06.050 (H.1 and H.3) of the Development Code allow a maximum density of 30 units per acre for Senior Housing. Therefore, it is possible that about 1,040 senior housing units could be developed on the site. The maximum -41- structure height is 50 feet. While the senior housing project alternative could meet project objectives for housing, it would not provide educational or retail facilities. In terms of eliminating the two identified significant effects of the project, air quality and traffic, a senior housing project would result in the same construction air quality impacts (significant); it would result in about 8,000 vehicle trips per day with operational air emissions still exceeding SCAOMD air quality significance thresholds; and it would still contribute to cumulative significant traffic impacts as forecast for the proposed project. Thus, this alternative will not significantly reduce or eliminate the significant impacts forecast for the proposed project and it will also not fully meet the objectives of the project. This alternative would meet the project objectives of providing housing on the site. However, this alternatives does not satisfy the objectives of providing the non-residential use objectives of the project. The Senior Housing alternative project was rejected from further consideration. d. Government Offices with Affordable Housing Project. The government offices/ affordable housing project would meet one of the RDA's objectives of providing affordable housing in the City of Temecula, but would not meet the objective of providing educational facilities. This alternative would not meet the AGK Group's objectives of providing housing and retail opportunities on the site. Under this alternative, 60 affordable housing units would be constructed on the site. Assuming the housing is developed at less than the maximum density of 30 units per acre, about 5 acres of the site would be utilized. The remaining t25 acres would be developed as government offices. The City's General Plan identifies floor area ratios (FAR) of 0.4 to 0.7 for PI land uses. This would convert into a potential for between 500,000 to 915,000 gross square feet of floor area on the site. This, however, is considered more floor area than would reasonably be constructed. Thereforo, this alternative will evaluate a more likely structure with about 250,000 square feet of floor area. This alternative would cause the same construction air quality impacts due to development of the site for offices and affordable housing. It was estimated that the trip generation from this alternative would be about 30% less than that forecast for the proposed project. Thus, the air quality and traffic impacts would be reduced by a commensurate amount. However, a 30% reduction still causes the air emissions thresholds to be exceeded and the cumulative traffic impacts would still occur, although the project's contribution to this impact would be reduced. The Government Offices With Affordable Housing Alternative would partially, but not fully, meet the project objectives. This alternative will provide affordable housing but no educational facilities. This alternative would not meet the objectives of providing additional housing and retail facilities at the site. Thus, this alternative project is a feasible development project, but it was rejected from further consideration because it does not meet the project's objectives. Based upon the findings presented in the FEIR, the above described alternatives have been determined by the City to represent a reasonable range of alternatives for consideration with the proposed project and to adequately address alternatives in the FEIR. Therefore, the City concurs with the finding in the EIR that the none of the alternatives placed before it for consideration can meet the project objectives established in the FEIR. -42- This concludes the summary of alternative that were identified and considered In the FEIR and the Initial Study. H. PROJECT BENEFITS The benefits from approving the proposed project are related to the provision of affordable housing combined with consolidation of post -secondary education activities in the region at a campus -like location in the City of Temecula. The project benefits outlined below were considered by the City in performing the balancing test with those unavoidable significant adverse environmental impacts presented earlier in this document. 1. Benefits of Implementing the Proposed Project 1) Construction of the TEC Project will inject approximately 75 million dollars into the local economy over the next five years of construction. This will support an estimated 150 construction jobs within the community. 2) Once completed, the TEC Project will create an estimated 150 permanent jobs, with an annual payroll of $5,025,000 per year. 3) The TEC Project will establish a higher education facility in the City of Temecula, which will contribute substantially to the City of Temecula's quality of life. 4) The TEC Project will provide a continuing education/training facility for new and exists employees that will assist in retaining the City's industrial employee base. 5) The TEC Project will provide 50 affordable housing units to assist the City in meeting its housing element requirements. 6) The TEC Project will provide additional retail operations to support the educational facility and surrounding industrial park uses. These retail commercial operations will generate additional, unquantifiable sales tax revenues that will accrue to the City of Temecula. 7) The TEC Project assists the City by redirecting the predominant traffic pattern by placing housing west of Interstate 15. 8) The TEC Project provides additional support for the French Valley interchange and extension west across Murrieta Creek. 9) The TEC Project will consolidate three higher education institutions at one location, creating a better overall higher educational environment for the region's residents. 10) The TEC Project establishes a corporate training facility that can would create a hub for economic development activities in the surrounding industrial parks. 11) The TEC Project will reduce the need to travel to San Marcos, Riverside and other out -of - area locations for students that must currently travel to obtain higher or continuing education. This has secondary benefits, such as a reduction in vehicle miles traveled for -43- local residents and air quality; time savings for individuals; and reduced traffic congestion on freeways. OVERRIDING CONSIDERATIONS This section of the findings addresses the requirements in Section 15093 of the California Environmental Quality Act Guidelines. Section 15093 requires the Lead Agency to balance the benefits of the proposed project against its unavoidable significant adverse impacts, and to determine whether the project -related significant impacts can be acceptably overridden by the project benefits when the impactstbenefits are compared and balanced. As outlined in Section F above, the proposed project is forecast to contribute to cumulative, unavoidable significant adverse environmental impacts in two environmental categories: air quality and transportation/traffic. The Temecula City Council finds that the previously stated benefits of the proposed project, outlined in Section G above and as will result from implementation of the TEC Project, outweigh the cumulative unavoidable adverse environmental effect to air quality and traffic that has been outlined above. The City needs a centralized educational facility, and the opportunity to combine such a facility with residential, including affordable housing, and other supporting uses is of considerable benefit to the City. Further, the commercial and day care uses will meet needs of industrial employees in an area that is currently under served with retail commercial stores and child care facilities. Thus, the City concludes that the benefits outlined above, that accrue to the community from developing the TEC Project, outweigh the additional air emissions and circulation system effects of the project. The social and economic benefits stated in the previous section are considered sufficient to offset the loss of the existing structures. The City's findings set forth in the preceding sections have identified all of the adverse environmental impacts and feasible mitigation measures which can reduce potential adverse environmental impacts to insignificant levels where feasible, or to the lowest achievable levels where significant unavoidable adverse environmental impacts remain. The findings have also analyzed four alternatives to determine whether they are reasonable or feasible alternatives to the proposed action, oir whether these alternatives might reduce or eliminate the significant air quality and traffic impacts of the proposed action. The TEC Project FEIR presents evidence that implementing the proposed project will contribute to significant adverse aiir quality and traffic impacts which cannot be substantially mitigated to an insignificant level. 'these significant impacts have been outlined above and presented in detail in the FEIR and khe City Council finds that all feasible alternatives and mitigation measures have been adopted or identified for implementation by the City of Temecula and other agencies where appropriate. The City Council finds that the project's benefits are substantial as outlined in Section G of this document and that these benefits justify overriding the unavoidable significant adverse impacts associated with the proposed project. This finding is supported by the fact that many of the benefits listed above result in the TEC Project fulfilling a critical role for the City in supporting adequate post -secondary educational opportunities for its work force and providing affordable housing opportunities for its citizens. These are critical societal management responsibilities, which if not properly support, could result in a decline in local employment opportunities and inadequate housing that creates substantial quality -of -life benefits that offset the quality -of -life effects from cumulative air quality and circulation system impacts that may result from implementing the TEC Project. The City Council further finds that the benefits outlined above, when balanced agains¢ the unavoidable significant adverse environmental impacts outweighs these impacts because: of the environmental, social, and economic benefits which accrue to City of Temecula and the residents in its service area as outlined in Section G of this document. As the CEQA Lead Agency for the proposed action, the City of Temecula has independently reviewed the applicable sections of this document and the TEC Project FEIR, and fully understands the scope of the proposed project. Further, the City Council finds that all potential adverse environmental impacts and all feasible mitigation measures to reduce these impacts have been identified in the FEIR, public comment, and public testimony. These impacts and mitigation measures are discussed in Section D and E and the Council concurs with the facts and findings contained in those sections. The City Council also finds that a reasonable range of alternatives was considered in the FEIR, as summarized in Section F of this document and that no feasible alternatives which substantially lessen project impacts are available for adoption. The City Council concurs with the extensive environmental, economic and societal benefits identified above, which will accrue to the City of Temecula and the population residing within its jurisdiction. The Council has balanced these substantial environmental, social and economic benefits against the unavoidable significant adverse environmental effects of the proposed project. Given that these substantial benefits will support the residents of the City of Temecula as a result of implementing the TEC Project, the City Council hereby finds that the benefits identified herein, collectively and individually, outweigh the unavoidable, cumulative significant adverse air quality and traffic impacts, and hereby override these impacts to obtain the benefits listed in Section G that will result from approval and implementation of the TEC Project. -45- EXHIBIT B MITIGATION MONITORING AND REPORTING PROGRAM March 7. 2004 763760.1 MITIGATION MONITORING AND REPORTING PROGRAM 0 O w xa W (9 .J ZIL I ~ O0 UO a Z W OM U Q 7 � 0 W Z—Q. go w0 22 WZ O_ F- Q 0 m Y t0 0 � fn BE Y . fA . N v d ai N d t o o = f'- LL- .. tT r Ld-. M,- d N U c >.�iSTEcc��wota� E d N o Q d. a N L N c m N a O U c O Q C LL fp N ^0 Cc LN- if c ww`U_dOLLFoffU- `Ccd 41 N c cac O d > UC LLd O"O-- u1 i.1ii�]-dn�d. cda)LN - «U=0 Q .. dc @ cs a 3 _FJ�d-iiiOUN• 0 ' .-.a�'wwa—00CEdEd -�oNUic CUdmrndappU aN c d am'mjID E 'N N? cod @ U'o 'E d c� >d0 4�Z (L)CLw L'= O Z CD Y Oat ON d N c o ` d E .yQ O` . d lL U O- E@ ;O = U d U N d fn "O = _ C d @ c H Z o 0 o U fn U m' c d y= a) N L 'C d d E fJ W d .� Y lA 7 j N a = o= c fn w N j = O@ Qj O d �.c 11 d U @ d 0) @ @ 'O d C Co Co@ �" N O Z d N E N N d C d N 3 - 0 d@ d c 0> N fU N O a a= W c 1] IT a w o w'S c- 0.2 d 0 U V w w C O U t N=- d N 3-' �. a o U c -O d �.@- N O C E d E v=.. T N N N N N a a N a {p� @ J- E Y @ cc O N@ U N W 'o U(D.= C_`paNi n=@m dmd o N Ec==�w o o@ '� • c Y� O= E fT d U f6 `o K a K m c U@ y E N d� Y6 U� N Z a c-0 = V Q Ol.- d.- C 0 c� @ Z@ ._ N U U J] 'O O Q N @ L O N a (� 0 O F d v (9 cli V O .w xa JZ a. E ~ O0 Ua Z W 0 U Q D W Z—Q. go D �- w0 22 WZ FD H Q r 2 d m o N C y - V D- O CO). N C CO C .. C f0 0) •- Cc C a) U S N pm D .0 J N C a) c U N Ntn O- Q- p 0o0QN iG+ . OY C p `�CL OO. p cm E UCOa E> N ,L�oIld Ldm �-iU CO, C C DN w � U dC O- l0)coNO +' a) sO N 2 Nd oo Ta a D 0 CL oho 0 M m o-.. d o QIn NLUL N NLL C aL�+ OIU O_C C , " a7 N T C Z g c.toCL. o a) U F- C CL c0 Vi � o 'o` oc s 2 o o D 0 0 c0 na c 3� _° c E O O` ~. O 0 O_ N 0) U O C N Cc 7 O Q. Q j a N m� N C N N a) m Q1 E ... L and O C c (0" N V Y accoNDC: 4co°�o�>c0 wWCm2N0 EL n.asnca)m�ca)m�00Qcm��YaE'om� c a = y 0). o z 3 0 2 m° y D n� m c o 0 0� m o° n i�Em n a) °NNE'nNa —cU,J Q d o .o •) o c D z D c d m 'p 2� o 0 C U L O J O O N G c 0 a) U O L J+ j- O) U O) w O. U Q. N n. E a) U O_ N O. (i7 U N D N O. O T U) o N .E 'c _ � a) L N c �. E 0 c 0 o c O C N J7 (n C (0 a) m N E .L. 37 L cm o L_ a) No DU) �2O ) jNOOC NEQD> O a C N N N D N U N M E D p) C a) Ol C 0 _ O N 3 2G @ E C °1 O 0) N O U (n Z N ,.. a) 'C N C C O- L U D N M.0 a) W... ° O C F N Co 0 F- U O t E C Y Y (a ` E D N C O d D C> C C O a) m M CL L N W C C M� N N C a) N N a) l0 of .Oa) d D O" N r V dD Q (0 N C .O L 0" 7 C-O D 3 M'O F- E n E a rn `m > j 'O (� L > 3 2 J 0 N D N c N a) co o y c° o-= N m m a y- n 3. C a) cL c m o n y' c vi mMcc woo rn ° oyOjN o @ O U n O CL 0.0,0 0 —o'0ED 6m ma u?a u• € E 0 m J� a) v O) rG (0 -2 N C� 0] D 2 L 2 N L.. m U Q N 9' ` N O U Q. N E c NL'' n U O L C JO 7 a) V V O N ('� N N O. a) C N N— N !0 > c C N !.' N a7 a' m a) U@' N E) C O. C 2j O p, E N � a) .O-� O. - a) �Ca)U3 .L-. a) a] 0 E (0 O) N N O Y C L C d m U. O O U d J cc ON Q. �CN�dIOVU >.NL 2, O�a> NO2 N 0 (0 UCE N Q J U 7 N O 'O C U L C' 0 0 0 0 N. L Mn U H O N Q. a) E C V= O. U N .`-. N N D O � N d C (/J O. E a7 T O) O c N a°) m o a 0 1 of c+i Cl) R N � w y .0 y ai ai w mia m e �` N w o` d� dvmai Q N C LL C N N in k O LL Y C O D a) a. a) 0 N U@> O) U ,Z N L N p a1 c O C N a) O_ — U > a) C ' .O Q N O C CU O. O N �a C N 'a ',--� (T'c �+ d N O- C N U N "O 'a N- O- Nmmo>w�dcLra) a) Y N Q 7 0 0 c' > N C N O. °�(3.1 O` ~ N y 3 -_md«d N O O a) C N O, .((pp .L.. N r.. U N N U.. `O' C a) L CL L N N O- C .LO. .L-. >` C E O O O N U N N E C in a > o o.._ O. N c .o N• c ° > � E m c .O m w c c c y. co d a co � E � .0 o � E'� > me ��o � "O C-0 "O Co N— m" C 8 0 .0 0 0 w � a� N N U N >. = L > j« a) U C c a) C 00 a) N U L O Q' L n p Cp m O CIL O L N c 2 VQl 2 a) W Q CT 11 D) L N N N ALL �- 9 U --. U- U N N N CL YO C ) ,fL. L C O s .y Ca @ X CL c pE pE JZ 0) CL � wUF- O O Up, 0 a) c � Ymoy- W cU Z W O .-m E C a) > (a a N a)azh a)li0cc N a) (U O c p N .0 {-. LN. a) ❑= N a 0 Q Z an d phi c m N c o° o o L E U Q y u N cci o m n. E L '3 0 am m E 'y c 00 CL a) •`o_ c 0 maENNc yn OZ_ E rnoo:r, C W — a)E>c) cn,->w0m L aI t`a (ow Fv0,0MIDo�Ea>1 f- Q� J0 T T UZ c c W O W Z N m .E m 'E 1- O Q OFCG- m m o 0 L m p CD o cNN mc 0aTN O > c aNN NaQ00 n N a ) .O CmN) vac YmCU�E O> a) C, m>a aL EvN vO m0 0.. laac 7 C ,> m^ m O - c c O p U a) -.N�N moC :E c) RNw E = N OL N « N W+N a) -0 W (U UE 3mvInU 0 ELL N '- ¢O -ON N- 00 dN,0? O NO N y II= U 0) O N aE1 N ) m 0 0N C O 'O 0 C NO E U aaO CaOCLL0) ia N CD a cC) .0 Ca)._.0 vLL ai Q 01 O Q O p yad N Q c m e 9 c yui OwO al N m— 'O NO aC 'Oj O L CC L.cN YO NE O aV Ca) Cc 4 � N^CN N0ca) oc d CV N m = CL 'N O CL- ) m Na) NmEyW U d a)m C 0a) U N> - U O N N � -, a 3mCvC a)oovO �m :E F°RCL <M,(Dcn.U�) >. co O N '0O c- N CO C4 _ Z O O V O x °' J ZIL _' E ~ 0 O () a Z LL) O� 0 U a W JO U Z WO 22 ul Z ~O H a 0 F- m o� N C M cc r V1 L Q ca N w C C C 9 O LL C A L Il - .-... 3 N C a) U 'w N C _ L Cll N 'U U N U la > m U .�` N t N C C U 0 0 v01 O N O O 0 O fa C L 0« m.` d N 0 0 'C 0 0 7 G •N-' O N - C > J N O_ N C m, d0000w30-ma)�a) E J N L 0- U i (0 . dv -N3da J m GL�0L) o NE cc m N m uN•�0 L C > O C a) d 0 E uE?oaco�a�a)U'o°-�E'o� 0 J (6 N Q O �n Ecrd 3c�mB E U > 0 0 V c 0 C y 0 U N 0 T— L C 0 d C C .d (a U 'O .L., d J a) d.— 0 E v) 0 m '� (0 O C 0 C a1 0 0 U L 0 0 0 L l0 C 0 H U :.C. U U N 0 (a d C N .L. L C N 0 0 d E 0 Z 2) U N .. N C `o ao o aa)) to E H [E= N a) E L .(0 a) y ..0+ v (6V1 J C NE0 E �E co � a) o� (o) 0)) E a0)E N(0Lm o 3 v v i .J. g (n (n 0 N m — m 0 .. > .0 CO 3 C Q 1> N O O)C L O m N C 0 N — 0() C N 0 -. U (6 C .? c rnJ d ,C N 0 J 0 CO @ O a N a)-0a (1)) c(0-0 0 (Na 0 C r a) N m 0 W=LL O)'O (0 N 0 a 'O O.O C U _"O Nm C M M U J N 0 OL.000 U-0 0O =N '" U OwCXOUwEU o X U� 'o0 w SO U 03 wVOy 0 C a) O N-v N(0 >-E�J N N N 3 L j C to C a) a)Z) .0 0 C y o 0 am' w d C C �_ 0,a) C a) .L-. ` i N C 0 0 — C J U 3 N 0 C O U 0 Ch N CO N ZO O 2 G O w xa J Z_ P~ Oo V a Z W O Ua O t7 4W —Za, JO 5 VZ m2 W Z ~O p a c� H m oU) y C y U -0 r Q C° a)O_ a) N •O N CM OU- •Z'N Y d w C L 0) V) i9 U— d U@> 0) > N d w O w 0 o8 0@ L° c Nv �'= d E c c fd.7 3 10 :� CL d 0. U C) 3 j N E p, CO C N .Ld-. C C N E U@ @ d d Vm Y U@ T N 9 0 N d . m C N V y C C. d Cp C n d N D O D U d V V U L C d U d _ L d B N C @ ca o 0 E UH c O N d d ,d d E a N D_0 O d m E m 0 E d m d- rto E N — 1-0 a) 3 U) O 0) •c a)a)3 a) c m do 3 L 0 N E N > N .L.. d n d 'p E c d 3 0 •a C- °) 0 o -° E CL -0d d o. d E U ` a) O" °Toa?u �o d `oa)E w'='Fa 0,E N Cr C •0 L N« p Eo•v_ -00 'j U) O C d N N d E o ai o. O N@ oVO-d L O d> @df0m 0.0 E 7@ cdy 0.0 d — N E « C E 3 d U L N A o C@ O .O O Co t n• 0 d 0) E 10 @ E d L V O aL-' C 0 C a C C C LA L O_ N a) C 0 N d V d a) O C d j m E@ 0 p m 0 co .` 7 j d o C w 0_ O w V@ C d p N O " O 07 a C _ O •C E O _ _ `0-0 y 2cd 2cam2� uco 0 ro cd�a) a2-0 7 C @ -0 d U) 'u m N 3@ d U O. U N d 0 C O r 'r- @ 0 E O N -@ a d Q O 0.0 3 p U0U.U)U)00 7� cmQEaENo cn@3 c 0 d N M v) d L L L O Z O O O O Ln d 0 A a ai a F a 0 O w x °- JZ a. 2~ O0 (U per, ZW OW 0 �a M W Z—Q, g0 I- W0 W Z O 'Q V_ m w o� N BE m w N i IOD cn� >c aE@caci° pm 2 > rP jO N O .00 c d cn ? a c o c U 9 a) aC �pE u).2 O d O 0 a U V- O U C O N N L 0 a) O U a) o d o a) m m a C c 0- a m a) N N a) O O .. H G cc E.0 a. C L U.L. O N a) C w'- a m~ N N CC U � a) O J - Sc�vav0) >c)c 0 v` m d m ° •N oa E° y m .7 @ O C> a1 a ja a) a s U O a aam2 cL m. a E o n a1 O u) - 7 FL- m�v m(°)aS�)3�N�°Y 0 73 u) T (p @ L a[L od om E UH UI- c 0 L C N d o t C y @ a. 0 N @ 2ccoa .:ate dcoc'v m C m- w- a W E t m E m a m w X ay a cc mE av2 0 a) O a N E C N O O .l6 N C E E L a)O O N I-L'O U N U L a)O O (D O H d V Ui-U T � >` V J 7 (n (n O M a fa .C-E C O) N h G m O] C o @ u) V 3 @ Co @C N (� 0 v c a'.Co m �_ (a) U_7 m 2 C, c c a) °oE', �r oCo`occ`0 ao- )a)�3� (1)im Om 23 VD rt Nca)> L N + NE-0 C O@ N N a@ C N 3 C' j C L N 'p c N O -0 ul o 3 C p C 0 'C 0 U C Y (D a) N -o @ C 0 N 0- a) coE�ixm�d�E.0 wN -0 o 'C C .ai? a) a 0 U 0 0= O N 0) a) O C. a) 7 O N C 0.0) U O O> > N N d2 •N �- N 0@(u�am��(ciu) a)a)a O C O I- 3 O N v y N p 0 U z 0 O w w a U' J ZCL C ~ 0a Z W O U Q 0 W Z—R• J0 wO W f Z 0 H Q 0 d R O N c w _ m rn,v a c c.O 0a)0)o — (Do m ' c c=�°co pm' ac C`. aldm a r .N vLo'm C C— _E •0) O a) 7 n m �. U c p C 0 0 U a) O] N O > 2 •E.6 C N N O C N a m U O a) O 4) m N N a) 'O a C m O) C— YO 0) 7 a Y U 0) C w L �_ ` V E N O .�' — m •° D O O Lul O N L a) a N m O� c d E~�� m m` Q c i C L (13 O_ .`, O m C a DI a O N °- N m la O 0. 0 0 4- p C O) •N U N a U E> Y tl) N c c m O N 000 . U c 0' N E O (0 0 0) O N a) O p O C c p .m m L m O" � 0) � c E 4) '� 4 E m N a) CL N 3 m U > N >. .z' L 0) m O L E y V N O O .O c C O U c la _' c = c m p 2° a) m to .fl a o >. p a) o L O V 'V) 3 U n. 1] L .2 N>' m' N N U O. a U N m E E a) O a 0 c m m G.d. O N E O aa)i E UH UH a) o t a m U F 2° m w o C 7 - 0 c L N C co o N c v yn (D c W ddm�d a c E o L?awimm aN no2 oE 2omo N O w °Nmo cdo F-.6 n0 go 0 Q:. E 9 T J ` 7 In W W _ 'c Z ❑ N O W' c0 > O Z W !a O cmw c— cl O N E 3 C is m m W t U N m> c o o p rn o>> O. p C S 2 a 0) r 3 cd we a)-0 3 m O m°E O=. m N c a N �l ` U O N N O N W E O 3 �' 0) m N N 0 L (Dm a LL L a) c a d. C W= N '> O E O E w ~ Z O j 0 c m a m` ° C a U— 7 C O n. N N c m j m 0) a) Co U Q N _0 U «) Co M Eaaia 7 'D0mo'vCL aa)i`m > O" d N N N 0 U m. O O C a O 0 c N O .3 E N�" O N� 2 a Q' m om. c V C c o.E W o T) V >'c .oc .> O> 0 (D U O C U C j m o O m L L C N E O L a) U 0 ❑coEmmmam`ma�SU 0 UH..om o i U C a ¢ (V to d La ai 1� a O w W a (9 J Z a� O Va ZW O� U a D O W Z—a, go w0 22 wZ ~O a c� F o� C Y M N C C m N =L 'NENd (a C O N QD 7 N at+ NO. C '� OO C C O d N O �y -O C ' O m ` r E at > . O a) O-'O 0) d N EdC: �L) C c @ .o . N 'CO > .0 lL N d . al Z N� C as al 0 m N_ O S .al N N 0 d ` y U ain NE2 0 E E u 0 0 C � O C O d C O 'C y ' U T co _ N 3 mN la 7. a) 0) N c y N a7 w N v °> @ c toN t� cVJ Cw. ccE @N E U CO o EcC° O E tm m E C c N E U -rO E N N W @C.d E �O'UCNIa N .00 C C N C aC O � E P N N 4) D70 N Q N N a) on�oE -Na NC 0C7 Cm 0 a) a a)oy 0 >v o 0o'0m O(T ON E aNicca`�coi> aNa�i2i> . N aS N N N D) 3 O1 C 7 o E 3 N y C C E C o-- a o C O_ N N 3 > m c 'o o C Q O N C 2 o O. 3 N C N 0 0 v m o o y v � u� " °- axi � CL m a J L d c � 2�� o 0 o 0 nN co m 2c a' moan y Z o 2 > o c°i � c c a >c!ca�i oaf NE'w >cNimoc ca�ciaa)) cEEIg :3 m0 daoa� 2Sm�coi oc - �avo2 a`o ��0 wEw�coic'N'vuw L) � O m � N O ao 0 rn a m a F IL 2 0 O w Xa w 0 J Z_ `. ~ 00 U p, Z w OM U Q w g0 M_ wO 22 wZ ~O CCC G .. cc c0 U) �= C Y 10 a+ N O M m U k Q7 N T cL a CL N at c 0 c � m d L d a y E 7 0 N.. U C U O U U a p t T C y 3mU 0 G > E 9 m O) m cm j= C -p co N 0-0p_ 7 N .'�� c O. y p a y 0 O• C L' L .O p .o � c m y � aNi «v a) a ID IDr y m -o= C E p c '— > ` a ya1 a) pL _ C mO N C N $cm @ L N C_ CUOp cU cN@N ~a , O Co C O a)=V +N _ m YN « l O NNC C WN 0)m 3 O N 0O2�y _ a$N CoC C Uv ua�c p1-c m cRf Y m 0O E N O O C � (D C Um to Qi .d C 3•-• L COCC O 0 O p O a)O cc` (! a w« U p Co m U N O N O p, O.> e i d o_'lil O N N N C Ct N 3 C V O L U O p C 0 L O. N M .NO +: Z 4? C ._�. c a' E N .._�-. c O O. > O O V > > C ' N ccaa al d !D ) 41 OC L 'C Y C a) o C) 3 rnm i>> �E Uo°E@ Uwn«5 ��pOc U' c N O Q ul - 2 0 0 w xa J Z_ E~ 00 0 c.i a Z W 0� U Q 0 W Z—Q, g0 5�- w0 EM W Z ~0 H Q 0 F- c O W U w J darcLC- c cw'E0(a00 (DNE d 0�a�irn���Nom�aNi� d3o'=MEmo°��mo°oc0 > U F_ - 'C C C 'O Q N U jn ca ' U N d N C d Co- o N CO "pd °' 0 E aa) a 0 0 .7 ry d LL O d °- -O y w N V > (a Ta) Cl�O)w-O- N p 2° N N d' .0 N d d O . UwMEEoo"a'> Fi'A m 0 y. E UH rn U d d. CFO C d .0 - L N O d d V E N d` C ad+ O d y n. E 2 a w O d N O �0 N c d C C N E.5 U d 0) U E O. S W (q m 0 c c o > ca d +_ o. E rn mnU-O "0 C a) OT E. ° mar m N N:9mEO3��° 03 a) N V a) .0 7 C N (ad O N U Ta N E O 7 >,.0 � d wW j d O`LQ N N > O) O.> C L Q,Fq N ' °� O.� E O N O C pEO �'(6 aA ��j CL 0-0 O d U .- L O. v! - C_ 0 .0.L 7 (� N N Q u-i _d 3 C CS) U w O NE0<CON t: 'O7ON DdC d vd N wdN-OEf0 U a) Y nd d Tm O l _ ` C d « a, m w > n 'v 3 C w 0 U w0 w O N V O_ � 0) d a r � U d T 00 O` a O` C Q CL W ` yO N 01 d n. U aO_U L ; N 0) —dais o��vcda)E arE° Q. a)N d V O a)m'O O C N CO L O LL M O in °- U w O �O N O ..N- O - L 0)- N aCU fl°NEM OtdMM:mL o 2 EaEai H 01 '7 U m O. d 0 0 d 9 M N ui V O w xx IL Lu O0 UO a Z W O� 0 U Q W Z-R, -%O 5— 0 Z 22 WZ F- O 1- 'Q V H 2 N w c _ � C c« U L V "a a) = NEm a c O 3 d C U N -_ a Co 7 aa) ..L., C > 0 •- .0 E yn) O C_� T al -pp C C ~ mU. O t= d— a C V O_"O N IA C O -U 2: nc L y mNo�NEE a Y C 0.5 .r U C d C w L)'� Q N lL C `� « V« a N E N N N O _ a7 >. C a) -w a V •p, O C a L C -N a) �. O)'� V C C C ca .U) N a1 O 0 -O O) al N L c)wmEEmav>p�E E a a U O E U Fa- x m 0 m a � awT aE . Oav o . Y d Y •C _ N a) a7 L 7 N -7p a) p N � 01"O OI 2 O C' N O C U 7 "O c=iE 5cL>aNac > a «E (tea c 0 rn c w 7 w G r Q,O L Ola d Q O C a 7 a C 3° u E p v y of m "O 2 p p a) o a a TNd �ya V 7 O C ai N a E c d 3 Q m o- 7 a p L E o c v n a E > O a 2 a L L N N N N F C 7 O N N C O U c Co N a � E E U0 2 0 0 E 2 a 0 L nLD U a) •O a) O 2] C C C a > N as L N alL Q w n a > N c z c a to O_0N j NO N N N U Co W N N L N C C Nc°,3 O N C d [c 3 o- m `0 O j N rn .O C p LO a O O p L N p a caNiEa) N C 7 a) 7 rnE o C C a) a)a c E n ° a o N C O" a a E 3 0 O U j a E a 2 C N 7 C a) N Ufa a) C 'C N a) Q -a 7 n N L N h N N a0 N C) O w a w 0 JZ_ ( ~ O0 UO a oLLI U Q LLI Z—a, �F- U Z uj 2n LLI Z ~O H Q m Y a7 N O A N C Y N _?'M a 0 m 0) a)°tea) T, Nm cJi:E . -m nca)'Oooc >a)3c t)° =�v c o J� p c-o U C c 2 - N N a) CL 2--.= o m E � � c m00DNp�'cEdc��ai .r U O N a) LL O a) n..� O. _ a) J O R6>'cw> c cZ,Q)=v—v ° m'o Ode a) N M W UwmEEa)mJo>joRii wfl. rIN o E CD U 1(D •y c a) J a7 SS C O r CO a) N •O U 'O C a� c E y ° p. 0 2 a) N c U N V = 2N a) a) O C U j E 2 _ y O. E 0-5 w a) N C• U In a)N °ca0ic°iwc�ac Q ° E °o E E 0 0 Ei r°n m 0 a (U N Ev C c c o° C O C 'O O a) a) d. O N C N Q -O O v « V a) O a) a) 'O C J N - 0 N d y e i w N > a) w (0 O y t mEa)3 N N N f0v3L y m° 0 E FU 3Tco N Q)ca om�a a) 0 3 O m N E U C U E N 0. O j O a C m V) T w N.L.° Zq oaaa))u°)> Nca LaNim LOU °3° V �3voo ��ycE C L C N 9 O C J d= O L N U a) a) U N a) C N :� 73 C N C O O O_ N C a1 O- C > N �. a) .O > „0 G O aJ.� > > ~O N a) U O) O N 0. co o_ E U N N° Y N N Q d N C 0) L C m C w EO a) O N O O)'O a) Q a) N° m "c CID a) O m �- N — CID a) C !a L.• J' N U = °" O) y N N U L a) 3 a) C U L a) N d U N N N >. d ° `c_ C o> E L a) «'o N a� E E a 4' 3 c° .J 3 N L C C O) aN N N _rn C O N N N ], U m a) a) N C Y (a > U N N O a3 .O C E O dooEn� O a) O C c 0 C; vacU °docom vcuEt °��cc o c ai O U j a) N c v 3 E C C 0 0 J cm _ a 0 — N 'C Y N _ E S a) — 0 O' N d — rn o L C C U 00 F-:.n m N "O N Q E. J y Q Cl) N J Im J O 04 r qT N N. N N N N a to Lr; LO �; t; ui m m N C L=+ fA a) Q C C N C p. c- m `o N E •�. C c E cY. S: M o m a) m o J O U w N M W N N N 10 V a) .L-. > O -O 0) " O j a� O m E m O � 3 0- E-0 0.0- cc O o c � o m a� d � rnm a�i� G C av a�0i m � a) >' !Y`6 aL.. U fJii N 0 O N a) c ` H N N i. N� N Q N U N •U l6 O O a) �' C a7 C C L-. M O E 0 C L U C0 O" N� lL C0 O-.0 a N N 0@ L N �a c O- C .L..i 'U E c -00 0O 0 O C U U= E N N N �` U U 0 a) 'C 0) a7 a) O a1 U N N 0 0 a1 J U 01 w c a U a1 N w E 0 U v m n Q E N N LO 6 0 0 p U a) a E N 0 0 �_` 0 0 'Fp O' W U w m E E aI m > a LL N a LL E N .0C w N U O '— N (a O O w al a C ca o m E `o aa) E F- m C U m C '� C . O 0 ` a p a C 0 �� � 2E g°7 ncCc 2 o C am. o N C m a 0 L U EO- N '-' (a N c 0• a) N a� a1 U a) E rn n E C O atq �'v� o-c 0 J E [2 E o a) m •. U m N Ltv'ci -0(D0 0 E0 ¢' ES�oEEo u � � w w @ rpn m co m O o N cu i m an an d EN d U� V/ C "UMp C 0 cu m law c 3: j t @ D_ L U CM a) j° m IV O w E a O m� L (Dn N N C p` N L U al N O 0) ? O C N N U O -0 N •o U J 0) asom�L> -M 2-0 Maa)iaEmmm(aaa> a� ... C O O' 0 i 0 c N O .. L p N U a (a a) "3 N (N V 0 J N J C E (D .... to .L+ ..J. ca) Ew Y0 am m 0ID0c0 Im 6-0mcvmE�y :3-0-- U N 'o c E ` f7/1 - EE(DcL - 0) v E �E J 0 J N J` C t, L a .3 U '� 7 N CO m c c c J l6 N G C c N U 0' N_ O 0 Co 0 0 m O O V o D_ 7 O- • G O. '0 p 'C "� O) 'C i7 C N T d U U U >` c J .- C to O m c N 0 C •- I- N F- c V H C a7 Q. N L J Q 3 2 N= a n' L 0 O_ 0 HEc —0E5 (a�N 0E-EO J to co N N a M QI rn IL 0 a F- a. m O O w xa JZ 0. va ZW O� Ua 0 W Z—Q, JO w0 2M W Z ~O 1= a 0 E- C O A U C i a) « C 0 N u > w C V NCc O O —1j=L'C a0 c U N 00" N d@ N C E N U d N O N O p . (0 = O 0 Y` Q U d O N lU _ U 11 'L" N (0 U �' O O Q m C.5« oU 0 o t0 0 t0 y E E E UFN UH U (D od) L C N O O.�- O CL O O C C C T O U U_ N .0 L D C U U - �EL) m o LL �O US O.� YO O. w w w v! m 0 0 0 :j T 7 c N C 7 0-.- E C O �U1 taaY`` aU` V V V O O O w w W. N N N O 0 O A to N M t0 M M t0 0 O w x a JZ a ~ a. O0 Ua Z W O� cQj Q � O LU Z—R• JO 5 t= U Z WO 22 W Z ~O Q O G m 10 N Y N C r N dCU` N ❑ C-Y 1O d N Z (a m @ -U O U@ d L OLO O c - U . c ->N 16 0mOEpdEOCN wdLNn anTu@L°� N O ff m N C;Z' N Z' N E@ N N 3 tf 0. O. t O .O �, U 0-6 @ O. U V •q1 O N w J U +_ d d N @ C C C. d N w `•z N@ U¢ N@ d N 0 'i L., O C 'C C C O O y d N «L+ O N d C C N C« i+ C CL C T d dtC d Nd07Vm T p N ❑E ONO —co >' o 3N va?dC'� oL.vCc UN cd =O~ ooroE'op C-4ca 9 odv.+3C!E�° 'oa)iN N co @wN w CCo Q @ <J.O > O N > d ,O C. @ @ J 7 as o w E oaoi E UH UFd- C O p - O r U Cp E m N C y V O N rn� U acn E > c" > _ 7 ❑ m ❑ m u � � w w m rpn m O � c � d d c o C 0 a)O C Y 7 C O N O >` ` .� (6 0 0 N O @v 0) E o N c� d•Od-0 E C @ N d wZ = Ma d(C -O d Cca Co a)r-C~t L-0 0E Coa m E N 3 N$ o E w Eo omCois d a) C p N Y"O d > @ d " @ d NV +-' OO C Nr@ Y N-0' NL � UN O cc dVym a) NL N E 4 '0 O T E C w '@@ _O 0wN�wC L mw O = .X- O a) d VE UC LUd CCL O 10 O d Co 0) 0@ N .z co a) d "O C a)OO O OO U Q. >` a E 7 d d O C N (0 dO C d d "O d " d 7£ O O_ V@ N -O j d@ C U 0� U= O d d @� �N @ E C E@ C o w `� X B Y @ 3 v Q d = p, U@@ d N LO p d ul p w 7 L @ @ C C' @ C U d 0@ N O O E O@ F- C U .L.+ ❑.'O O N T O E .L.. L N ..L.. L �=" U U_ E U .0 +L-. @ E 'O 71 C @ N N d V 0 O 0' X a JCD CL C~ O0 UO a Z LU O� U Q MO W Z—Q. 5o � — WO m2 W Z ~O II-^- V Y m U) C Y a7 Y M - c 0 0 0 c �� 1 �- O. N O C@ m m a) m d m �L- C c a) 0 d ANcn a > O lOOZ C > N@m W OLQ 'O W m O C f0 NE> _a kO> C d O O lU0 md0 c d r> m001 >LN W C m > O' U Um >N U O ] m mO C mN O C O0.N ONOm E ca rD O iON cu m a7 N m a) N E O.� �?`(n � 1� ai Q"O.n 4= O 3 NU.L. a7 a > as > oa) w U 00 �E �E Ufa) UH c i Oc c Ya. l C> O OCO_ ICtiQ O N mcom YmCc a1 N 01 dv m am N aaa)M's a) E L m a) o a Z w c a J o � 41 V m m o > 0 N O N a p °� da E o d aa`�Yv m c m H y o o I— n m m 3 m c E c � m K w w N m � Y 1 O « 0_ m C C C. 1 D N m m C 0 v m al a) m _ O_ N .L.+ 0 -O 7 O (0 > C C CL m m m Co -O V L U> m m m V '0 C O am. O 0) a) U D N W N N Y V m m e m> U y X m N .0 n c m n C0 ` (D m y.0 o_rX�cC0) �EEcEU)—(—a 0i 4—OD°ooC�omN 7 O N V fa ._ 'CuF m V" p m 0 > .. L-. O' E O m E' co O_ E 0 N a) O. C U O c> N 7 c m E L O. L- m >. d 0 0 co N C m C m 0 c U o- m 0. E' m w- r 0 a)M U o W N� O N C� T (D O " m E 0 m N N C p m C m m �ocEoo°'m'0Fm3Y0NL3� C ._ �mmmmymm .a- m �ccU .m - N> N -N N CL Y m C 0 m m N m m m o E En 'o c.- O. N >.:-. r m 0_ 0 C Z o_ m c 0 a) a, L w m U V W N O L T -0 m m m U m C O U a) —M is 0 m 'O 0 C O. Cl m v 0 L N � d m U .0 7 OI m U O —` C W Z' m O m O> W N > Oc 'O V m C�c O.� U N H C m O YO m N L L E> U O_ •p D m d C 0 C (a lL cx C O N C E U C ry N m N n. V w .0 '0 m m 0 O� 01 `o_ 2111 m C aa)i .0 m e C m :: O N 0, U ;�` > m m0_ E U O E 0 3 E 2 N y d U CO d m '� ya o E D U N` y C 0 7 Ql > C" � C C : oa`o'Fmm6occo >0c �m c comoOv a a y Lm0cmoom F-o0mv aN u N N N M Y m V 7 10 ui m d to IL ai a F a m V 0 w wa a J Z a� O0 Ua ZW OM 13 U Q 0 W 0 D w0 M2 w Z F- O Q :7 2 m R C M A r O (D d � _ Y C C 'C C V= p O d _ C 2 w O U d W. c d cm -a a O_N nU E 0..L. O L U p �CQ O.0 O N CL C dC' aa)i N 0 L .� d la O. E a O_ t_ (i a U N -m w e o d aj :a d d 4 l6 N o 7 F 'f6 Q .L N d L 'y Z� C QO w d ai w d C U L. a CL 0 co 4) .. c0 = @' c a.@ C U C d N a7 a1 C L acc CL 0 o f of c O m E. d t o n L d v an d O_ c a) Q, c U 0 `o ♦" 7 d y O E d a l0 N 9 `O ca a s 75 0'o = N N O_ 01 y C C N y �� N d 01 C 0 fq d fl. d Nar M N� N M M mow E E d N N U N 7 C L d a7 N O C C M s N a L d O d. L d 2H U ao: I- m E�SF 0 u U j, w w 0 m m d° N 3 O M L a)p� C �l d C T �O a y '0 0 O a U d= E C N Co d C Ol 0 Co M O d 00 0 (D c 0 0 a) rn aoi= h rn ro 1°t � 0� Z 0 a on - > oScE mp �c�2(DoaNadd� :9 Ea d N d a O .N E C L O -� ?� N d> N d O d d d d d n= " d Y d O N L �- .L.. C N U O U N d Y a W w r d w C'= C L d d C d d w j Z o d N ca tldi L T CO N O O a y a7 O D_ N `7 w Ol J O ai O Y d N E 7 a O_ N .N. O' N N @ f0 A. c 2) w d _ O' 0 0 'C '�` C 3 _ Co N U `' N U C C N O '_" = c d a r O" a •� a1 C m d O O d N U� 3 j M d ..d- E U o mE�d.0aa)c d �To@-wLdToodaNiEwrN: m CO .U.. L O_ Q •= v- L L 'C (a >. @ 'C O •C a N = d • E V O y0 E D N 2 2 E= N N `m c U 0> p N ..Ld.. N C — N U d `O d Y) 30 _ p_ Y. C@ C C Q O N= N Cc L U N = ?' E U M U = F E i- O. C L F C in a d d d` 3 w (i d H Vd! U A N M 7 LO LO U iri Sri n d rn 16 a ti a H IL w G O w x °- JZ 0 ~ 0. O0 U (L Z W Q U Q D 0 W y �O w0 m2 W Z ~O Q O f" 2 d Y m a Y - m Y y 45 C Y Y ✓T N toJ O C_ C O Q C C to mod,• V tea m t_ c O C cm U O 0 L fY0 to U ca)dii — w tF .= m m CL c O C a1 N •L 9 N O N O lU lLa U)=L_ a > oL ff T N {Z -09 dm E N O aYd'DZ O C ov U JJm$ U N y. U a1 U O J m Q E C I]. U 'O. > •O N O m a e m Co a pcc _ o d J a d ) E m L 3 Sm l6 c 'O aN. O 'v vo aulmo9u .m+. N@ O D w U ~ w a E Co J O. T 'no EO.•O = C E L O. m C m Y 0 0 m �. y m EcLi m 3$vaci�poNt(DCOaa))CO cm a) � o> c= Ey EN mNH NO:C N U O « � w w 0 fA � (i LL N 12 T L N m Q N m O E a) C0 C'O N U YO U N m m T 0 m O O � 'vC 1 L1 O O C m mN my O N 01 m a) NtNl U L L.m�+ J� w —E-0 T a) r�a) O Co m 0 0•00 N p cm Om-C9 wC0 m in =la N > G d� L a) - m vp•O E 'OLC CM a. m m OL C m Q) m c L m Lc E at W c d m m C c O m v N N a) U m m pd M. m > w•�-LU p 0'a co 2 m ZNp aOElcp L 2 Uv3m.+ 7 al maNO N�C OaCOCn j NmUS F=-�m@oo aQQ-Iw4bE m L 7 q L U tti t6 co m rn m a m J3 Im w :7 O w xa J Z a� O0 va zW O� 0 U Q MO 0 w z—a, go w0 En W Z ~O I= Q 0 d A c Y A Y (A ::❑ O O N d �• 'O d md.°mddQcmd NIL �Y�-. L N;= w W Co ID C -. O v6 := U N d 'U O C C .Z` C N m V) N � y m C O- N d c$()> a Z E T= 'Q.'U -O m a l0 "3' U U p y C .Y d N L N U UNm�w�m=°.o° d a_ N T C cc a = 0 a.. o y E U H C T mm (D Q (O 00 CD L C N O - =d Z — L' a) U .d. U) = 0 O. , m co C 0 "- Y PO N U C -U y .0 m N m •- •O C C — 'OUID 0 (U c c d C 0 N N Ev 0v�=mo.O1aa L O N O E S 4d--. 2d N aN E m d� y 0 �a•CLO t= g E L> d o d> m o N3arna5.°°O(a0cN ° N: c iL aj T C � m O v o m--> ZY Z 4) 0L a) 3 p_ N •O d m m m i" O O_ a N? m N m N N E 7 m Y Ud>�F-L °—m y d a E U �, d ° w L J Y m� C U m N N-0 :E — d L w N C E = d a d o m 3 E o a c v 7 .0N C O N UT) a) O- C CCp C, m C O) N O O C (a ?� '0 -0 'O Q U U d U) C m N la coU 7 C .0 w F '� V t > U d m L d— m m a>vr_EimmuE_ 3 L m O dp d O m N o a 3 m y m C C U C -U E 7 L m N T V d? C a) 0 0 C'` a) a) -E d m� ° 0 'c o. � d uii o' aa)) w K Loa: rn H o m v a N U N m 3 rn m E o v A U ui RESOLUTION NO. RDA 04- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING A DISPOSTION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND AGK GROUP, LLC, FOR THE TEMECULA EDUCATIONAL COMPLEX THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Temecula hereby finds, determines and declares that: A. The Redevelopment Agency of the City of Temecula ("Agency") is a community redevelopment agency duly organized and existing under the Community Redevelopment Law ("CRL"), Health and Safety Code Sections 33000 et seq. and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant: to action of the City Council of the City of Temecula. B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988-1" (hereafter the "Plan") in accordance with the provisions of the CRL. On December 1, 1989, the City of Temecula was incorporated. The boundaries of the Project Area described in the Plan are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91-08, 91-11, 91-14, and 91-15 establishing the Redevelopment Agency of the City of Temecula and transferring jurisdiction over the Plan from the County to the City. Pursuant to Ordinance Nos. 91-11 and 91-15, the City of Temecula and the Redevelopment Agency of the City of Temecula assumed jurisdiction over the Plan as of July 1, 1991. C. The Disposition and Development Agreement ("Agreement") approved by this Resolution is intended to effectuate the Redevelopment Plan for the Agency's Redevelopment Project Area No. 1988-1, as amended, by contributing certain real property and providing financial assistance to be used by the Developer to develop the Temecula Educational Complex. The proposed Temecula Educational Complex will be built on a 31.1 acre site located southwesterly of the intersection of Diaz Road and Cherry Street within the Project Area and will consist of the following components subject to the terms of the proposed Disposition and Development Agreement and City approvals: (1) Conference center; (2) two college educational classroom buildings (termed educational towers); (3) central five- story signature tower; (4) amphitheater; (5) support commercial facilities, including day care and retail uses; (6) possible professional and research office space; (7) multi —family housing; and (8) parking areas to support all of the above described uses (collectively the "Project"). The multi -family housing will consist of 273 units of which 50 will be affordable to persons and families of very low income as defined in Section 50105 of the California Health and Safety Code (i.e. to families earning up to 50% of Riverside median income). R:/RDA Resos 2004/RDA 04- D. The Agreement is also intended to effectuate the objectives of the Agency and the City of Temecula (the "City") in complying with their obligation to provide low and moderate income housing pursuant to the Health and Safety Code of California and the goals of the City's Housing Element to the Temecula General Plan. The Developer's development of the Project and the fulfillment generally of this Agreement are in the best interest of the City and the welfare of its residents, and in accordance with the public purposes and provisions of applicable federal, state, and local laws and requirements. E. Pursuant to the provisions of Health & Safety Code Sections 33430, 33431 and 33433, on February 24, 2004 the Agency duly noticed and held a joint public hearing before the Board of Directors of the Redevelopment Agency of the City of Temecula and the City Council of the City of Temecula concerning the approval of the proposed Disposition and Development Agreement with Developer. F. Pursuant to the requirements of Health & Safety Code Section 33433, a comprehensive report summarizing and analyzing the proposed Disposition and Development Agreement. The report specifically contains the information required by Section 33433 and has been prepared within the time limit set forth therein and made available for public review from the date of the first publication of the notice of public hearing. G. The conveyance of the property as proposed by the Disposition and Development Agreement is at a price which is not less than fair market based on the Agency's real estate appraisal and analysis. H. The development of the Project as required by the Agreement will assist in the elimination of blight in the Project Area as identified in the proceedings establish- ing the Project Area in that development of Project on the Site will: (1) Facilitate land development which will result in employment opportunities and an expanded tax base; (2) facilitate thei development or educational facilities which will assist in providing educational opportunities and job training to residents and workers in the Project Area and the City of Temecula; (3) consolidate irregular and substandard properties into a site appropriate for development; (4) encourage and provide for development of vacant properties in accordance with the Plan; (5) create a mixed use environment to reduce vehicle trips by locating the educational facility in conjunction with residential, retail and day care opportunities; and (6) preserve, improve, and expand housing opportunities for very low income residents. I. The Agreement is consistent with the Redevelopment Plan and the Implementation Plan adopted by the Agency for the Project Area. J. The redevelopment of the Project site as provided in the Agreement and is consistent with the City's General Plan. K. The Agency is specifically authorized by Health & Safety Code Sections 33430, 33431 and 33433, and other applicable law, to enter into the Disposition and Development Agreement. L. The Agency Board and City Council have duly considered all terms and conditions of the proposed Agreement and believes that such agreement is in the best interests of the Agency and City and the health, safety, and welfare of its residents, and R:/RDA Rescs 2004/RDA 04- in accord with ';he public purposes and provisions of applicable State and local law requirements. M. Following consideration of the entire record of information received at the public hearings before the Agency and City Council, and due consideration of the proposed Project, the Redevelopment Agency adopted Resolution No. 04- entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE TEMECULA EDUCATIONAL COMPLEX PROJECT, THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND AGK GROUP, LLC. FOR THE DEVELOPMENT OF THE TEMECULA EDUCATIONAL COMPLEX, AND RELATED ACTIONS, AND ADOPTING FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, APPROVING A STATEMENT OF OVERRIDING CONSIDERATIONS, AND APPROVING A MITIGATION MONITORING AND REPORTING PROGRAM IN CONNECTION THEREWITH FOR THE TEMECULA EDUCATIONAL COMPLEX TO BE DEVELOPED ON APPROXIMATELY 31.1 ACRES OF PROPERTY SOUTHWESTERLY OF THE INTERSECTION OF DIAZ ROAD AND CHERRY STREET." The Final Environmental Impact Report (FEIR) and mitigation monitoring reporting program accurately addresses the impacts associated with the approval of the Temecula Educational Complex, the Disposition and Development Agreement, and adoption of this Resolution. N. This Agreement pertains to and affects the ability of all parties to finance and carry out their statutory purposes and to accomplish the goals of the Plan and is intended to be a contract within the meaning of Government Code Section 53511. Section 2. The City Council of the City of Temecula hereby further finds, determines and declares that: A. Section 33334.2, at seq. of the CRL authorizes and directs the Agency to expend a certain percentage of all taxes which are allocated to the Agency pursuant to the CRL Section 33670 for the purposes of increasing, improving and preserving the community's supply of housing available at affordable housing costs to persons and families of low to moderate income, including lower income and very low income households. B. Pursuant to the CRL, the Agency has established a Low and Moderate Income Housing Fund (the "Housing Fund"). C. Pursuant to the CRL Section 33334.2(e), in carrying out its affordable housing activities, the Agency is authorized to provide subsidies to or for the benefit of very low and lower income households, or persons and families of low or moderate income to the e>3ent those households cannot obtain housing at affordable costs on the open market. D. Developer proposes, with the assistance of the Agency, to develop the Project and upon completion to make available for the longest feasible period of time 50 housing units in the Project at affordable rents to very low income households. E. Pursuant to Sections 33132, 33133, and 33600 of the CRL, the Agency may accept financial or other assistance from any public or private source, for the R:/RDA Resos 2004/RDA 04- Agency's activities, powers, and duties, and expend any funds so received for any of the purposes of the CRL. F. The expenditures from the Housing Fund as contemplated by the Agreement approved by this Resolution will directly and specifically increase, improve, and preserve the community's supply of very low income housing within the meaning of Health and Safety Code Section 33334.2 and will be of benefit to the Project Area by providing new housing which restricted so as to be affordable for occupancy by very low income households. G. The California Legislature declares in Health and Safety Code Section 37000, et seq., that new forms of cooperation with the private sector, such as leased housing, disposition of real property acquired through redevelopment, development approvals, and other forms of housing assistance may involve close participation with the private sector in meeting housing needs, without amounting to development, construction or acquisition of low rent housing projects as contemplated under Article XXXIV of the State Constitution and that the Agreement approved hereby is not subject to the provisions of said Article XXXIV. Section 3. While the Agency determines that participation in the feasibility analysis, financing, and development of the Project does not constitute development, construction or acquisition of a low -rent housing project within the meaning of Article XXXIV of the State Constitution, this Resolution is hereby deemed to constitute approval within the meaning of Health and Safety Code: Section 37001.5 of a proposal which may result in housing assistance benefiting persons of low income. Section 4. The Agency hereby finds and determines that the lien of the covenants required pursuant to the Agreement may be subordinated to financing for the Project because an economically feasibly: alternative method of financing the Project on substantially comparable terms and conditions, but without subordination, is not reasonably available. Section 5. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby approves that certain agreement entitled "Disposition and Development Agreement' by and Between Redevelopment Agency of the City of Temecula and AGK Group, LLC, a California Limited Partnership, along with the Loan Agreement, Promissory Note and Regulatory Agreement referred to therein, with such changes in such documents as may be mutually agreed upon by the Developer and the Agency Executive Director as is in substantial conformance with the form of such Agreement and the related agreements referred to therein, which are on file in the Office of the Agency Secretary. The Chairperson of the Agency is hereby authorized to execute the Agreement, Loan Agreement, Promissory Note and Regulatory Agreement including the related exhibits and attachments referred to therein, on behalf of the Agency. A copy of the final Agreement and related documents when executed by the Agency Chairperson shall be placed on file in the Office of the Secretary of the Agency. Section 7. The Executive Director of the Agency (or his designee), is hereby authorized, on behalf of the Agency, to take all actions necessary and appropriate to approve, execute, carry out and implement the Agreement and to administer the Agency's obligations, responsibilities and duties to be performed under the Agreement and related documents, including but not limited to the Grant Deeds, Loan Agreement, Promissory Note, Deed of Trust, Regulatory Agreement, acceptances, escrow instructions, certificates of completion and such R:/RDA Resos 2004/RDA 04- other implementing agreements and documents as contemplated or described in the Agreement. Section 8. The Secretary of the Agency shall certify the adoption of this Resolution. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Redevel- opment Agency of the City of Temecula this 161h day of March, 2004. Jeff Comerchero, Chairman ATTEST: Susan W. Jones, CIVIC City Clerk/Agency Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, CIVIC, Agency Secretary of the City Council of the City of Temecula, do hereby certify that the Resolution No. RDA 04- was duly and regularly adopted by the Board of Directors of the Redevelopment Agency of the City of Temecula at a regular meeting thereof, held march 16`h 2004, by the following vote, to wit: AYES: AGENCY MEMBERS NOES: AGENCY MEMBERS ABSENT: AGENCY MEMBERS ABSTAIN: AGENCY MEMBERS: Susan W. Jones, CIVIC City Clerk/Agency Secretary RJRDA Resas 20041RDA 04- 5 SUMMARY REPORT PERTAINING TO THE SALE OF REAL PROPERTY (California Community Redevelopment Law Section 33433) PURSUANT TO A PROPOSED AGREEMENT OF PURCHASE AND SALE Between: TEMECULA REDEVELOPMENT AGENCY And: AGK Group, LLC Prepared by: KEYSER MARSTON ASSOCIATES, INC. For: REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA Date: March 1, 2004 SUMMARY REPORT PERTAINING TO THE PROPOSED SALE OF REAL PROPERTY I. INTRODUCTIO14 The Temecula Redevelopment Agency (Agency) is considering the sale of real property to AGK Group, LL; and/or it affiliate (Developer) pursuant to the Disposition and Development Agreement (DDA) between the Agency and the Developer. This Summary Report is prepared in accordance with Section 33433 of the California Community Redevelopment Law. This summary consists of six additional sections, as follows: • Section II, Desi;ription of the Proposed Project. • Section III, Estimated Costs to be Incurred by the Agency under the Proposed DDA. • Section IV, Estimated Value of the Agency Property at the Highest and Best Use. • Section V, Estimated Fair Re -Use Value of the Interest to be Conveyed. • Section VI, Purchase Price the Developer will be Required to Pay. • Section VI I, Explanation Why the Sale of the Property will Assist in Elimination of Blight. 04340mm March 1, 2004 19545.015.001 Page 1 II. DESCRIPTION OF THE PROPOSED PROJECT A. Proposed Transaction The Developer intends to develop and operate an educational facility and mixed -income apartment complex on the property (Project). The property is an approximate 31.0-acre site (Site) at Dendy Parkway and Diaz Road. The Site is vacant, unimproved, and located in a flood plain adjacent to Murrieta Creek. The proposed transaction is detailed in the proposed DDA dated December 12, 2003. The final DDA will govern the relationship between the Agency and the Developer with respect to the proposed development and operation of the Site. The key terms of the proposed DDA are summarized below. B. Agency Responsibilities • The Agency will sell the Site to the Developer, and the Developer agrees to purchase the Site, in two phases. The Developer will close on and purchase all subphases of Phase 1 concurrently, with the exception of Phase 1C, and may close on and purchase all or any of the subphases of Phase 2 concurrently with the purchase of Phase 1. The Developer may not purchase any subphase of Phase 2 unless it has purchased Phase 1. • The Agency will make forgivable loans to the Developer in the amount of $3,800,300 for the purposes of financing the purchase price of Phase 1A ($1,078,000), and a portion of the cost of constructing the low-income housing units ($2,722,300) on Phase 1A. • Upon the Developer's failure to close any of Phases 2A through 2H, the Agency will pay to Developer a share of the actual costs incurred by the Developer for the preliminary site development work for each phase not acquired by the Developer, calculated on a pro rate basis relative to the area of the applicable subphase. 04340mm March 1, 2004 19545.015.001 Page 2 C. Developer Responsibilities • The Developer agrees that it will purchase the Site in an "as -is" condition for following purchase price: • Phase 1A for $1,078,000; • Phases 1 B, 1 C, and 1 D for a total of $1,161,800; and • Phases 2A through 2H for a total of $1,561,300. • The Developer will provide a $100,000 deposit (initial deposit) concurrent with execution and delivery of the DDA. • The date of the close of escrow for Phases 1A, 1 B, and 1 D is scheduled to be no later than 16 months after execution of the DDA. • If the close of escrow for Phases 1 C and 2A through 2H has not occurred within 32 months of execution of the DDA, the Developer will deliver to the Agency an additional $100,000 deposit. • The timeframe for the close of escrow may be extended by one year under the following circumstances: the Planning Commission has approved the development plan for the project; the Developer has submitted for Plan Check comprehensive plans for Phases 1A, 1 B, and 1 D; and the Developer increases the amount of the deposit by $100,000. • The Developer agrees to construct the Project in accordance with the Scope of Development, and to bear all costs associated with the Project, except for the portion of the costs of subphase 1A to be financed through the Agency's forgivable loan. • The Developer will complete the preliminary site development work for the entire Site within 10 months after the close of escrow for Phases 1A, 1 B, and 1 D. • The Developer will construct a 273-unit apartment project, which will include 50 units affordable to households at very -low income levels for a period of 55 years. • The Developer agrees that for a period of 20 years after completion of Phase 1 B and 2G (Buildings 2, 3, and 4, the educational buildings), that these buildings will be used solely for higher educational purposes (which may include continuing education 04340mm March 1, 2004 19545.015.001 Page 3 programs, accredited trade school programs, and workforce education programs), and for no other purposes without the prior, express written consent of the Agency. However, if after 10 years following the completion of Buildings 2, 3, and 4, if any lease of all or a portion of these buildings is terminated, or the term expires, and the Developer provides to the Agency reasonable evidence that efforts to lease the vacant space for higher education purposes has been unsuccessful, then the Developer may lease the vacant space to a tenant reasonably approved by the Agency. If the Developer fails to satisfy all the conditions and requirements to obtain a certificate of occupancy or its equivalent of all Phase 1 subphases within 30 months, or all of Phase 2 subphases within 24 months, after acquiring the applicable subphase, then the title to the applicable subphase, including all improvements, will revert to the Agency. The Developer may not assign the DDA without consent of the Agency, which will not be unreasonably withheld in respect to partial assignments of the DDA with respect to one or more subphases to entities whose ownership interests are at least 20% owned by A.G. Kading and/or trusts for the benefit of his family. 04340mm March 1, 2004 19545.015.001 Page 4 III. ESTIMATED CAST TO BE INCURRED BY THE AGENCY UNDER THE PROPOSED AGREEMENT The net costs to the Agency related directly to development of the Site are estimated to total $3,885,000, as follows: Agency Costs "I Acquisition Cost") $3,800,000 Agency Assistance "' $3,800,000 Miscellaneous/Other Costs " 85 000 Total Agency Costs $7,685,000 (Less) Developer Purchase Price ($3.800,000) Net Agency Costs $3,885,000 (1) Rounded to the nearest thousand. (2) Per Agency. (3) Forgivable loans provided for development of Phase 1A garden apartments. (4) Estimated costs to the Agency for legal and economic consultants. 04340mm March 1, 2004 19545,015.001 Page 5 IV. ESTIMATED VALUE OF THE SITE AT THE HIGHEST AND BEST USE This section presents an analysis of the fair market value of the Site at the highest and best use of the property. In appraisal terminology, the highest and best use is that use of the property, which generates the highest property value and is physically possible, financially feasible., and legally permitted. Therefore, value at highest and best use is based solely on the value created and not on whether or not that use carries out the redevelopment goals of the City of Temecula. The City of Temecula General Plan (1993) governs the zoning and land uses for the Site. The subject Site lies within the zoning and land use designation of PI — Public/Institutional. The PI designation is intended to facilitate construction of public, private, and quasi -public uses in appropriate areas of the City, and to ensure that new development of such sites are developed in a manner compatible with surrounding land uses. Typical uses include public schools, hospitals, libraries, civic centers, cultural facilities, churches, and public utility facilities. In determining the highest and best use of the Site, KMA considered the current zoning of the Site, its location, and physical condition. The zoning primarily allows public/institutional uses, with potential for some ancillary development under a Conditional Use Permit (CUP). Therefore, KMA finds that the mix of uses proposed for the Project — absent the income restrictions imposed by the DDA on the Phase 1A garden apartments — represents the highest and best use of the Site. KMA reviewed comparable land sales for large tract commercial and residential sites in southwestern Riverside County and compared these values with the estimated costs of removing the Site from the flood plain, grading and soil compaction, and the installation of perimeter streets and intersections, needed to prepare the Site for development. On this basis, then, KMA concludes that the fair market value of the Site at its highest and best use is $0. 04340mm March 1, 2004 19545.015.001 Page 6 V. ESTIMATED FAIR RE -USE VALUE OF THE INTEREST TO BE CONVEYED This section presents an analysis of the fair re -use value of the interest to be conveyed to the Developer subject to the conditions, covenants, and restrictions contained in the proposed DDA. In estimating the fair re -use value of the Site, KMA has reviewed the requirements that set specific conditions for development and operation of the proposed Site. Analysis of the development economics of the Site, reported separately to the Agency by KMA, indicates that pursuant to the conditions, covenants, and restrictions contained in the proposed DDA, the fair re -use value of the Site is estimated at negative $349,000, broken out as follows: Estimates of Re -use Value Phase 1A — Garden Apartments Campus Facility— Excluding Phase 1A ($2,835,000) $2,486,000 Total Fair Re -Use Value ($349,000) 04340mm March 1, 2004 19545.015.001 Page 7 VI. PURCHASE PRICE WHICH THE DEVELOPER WILL BE REQUIRED TO PAY Under California Community Redevelopment Law, the Agency is obligated to publicly disclose information sufficient for a comparison of the purchase price contained in the proposed Agreement with the estimated fair re -use value. The Agency will convey the Phase 1A site to the Developer for $1,078,000 and provide financial assistance to the Developer in the amount of $3,800,000. On this basis, then, KMA concludes that the effective compensation to the Agency for the Phase 1A site is negative $2,722,000. In addition to Phase 1A, the DDA also requires that the Developer purchase Subphases 1 B and 1 D from the Agency, and allows the Developer to acquire Subphase 1 C and any or all of the subphases within Phase 2. The DDA establishes specific purchase prices for each of these subphases. If the Developer acquires all of these subphases, the total purchase price will equal $2,722,000. On this basis, then, KMA concludes that the effective compensation to the Agency for the entire Site is $0. 04340mm March 1, 2004 19545.015.001 Page 8 VII. EXPLANATION WHY SALE OF THE PROPERTY WILL ASSIST IN THE ELIMINATION OF BLIGHT The Project is located across Diaz Road from the Redevelopment Project No. 1-1988 (Project Area). The Agency has undertaken numerous improvements in the Project Area, including building rehabilitation, public improvements, and development of affordable housing. Implementation of the proposed Project can be expected to assist in the further alleviation of blighting conditions in the Project Area and environs through the following: • The Project promotes the heath and general welfare of very low-income residents by providing affordable housing, i.e., 50 very low-income rental apartments for 55 years. • The Project provides a broad range of infrastructure improvements to induce private investment, i.e., perimeter street and intersection improvements. • The Project will encourage visitors to the area, by drawing as many as 3,000 part- time students, lanhancing the area as a desirable location and improving commercial activity. • The Project will promote the expansion of the City's industrial and commercial bases and local employment opportunities to provide jobs to unemployed and underemployed workers in the City. 04340mm March 1, 2004 19545.015.001 Page 9 W f a g q$q <@ c cog E z w`g o or x$a cs w w 4 p4� LL. g3 i N cn a a4 o�$sos 'offa a6.2 a� �g y3g Ex &eau-ua �.F> o�€pe _s pa �1 - ga 'aoYb2 $'aa. -�g30a51 a a s: o ®000 a r.1 X z W Q J a_ aw OJ v? zw U O z _ O �• U Q V D 0 LLI Q ' C.) CW G W H DISPOSITION AND DEVELOPMENT AGREEMENT THIS DISPOSITION AND DEVELOPMENT AGREEMENT (the "Agreement"), dated as of March 16, 2004, and is entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate and politic (the "Agency") and AGK GROUP, LLC, a California limited liability company (the "Developer"). RECITALS A. Agency is a public body, corporate and politic, exercising governmental functions and powers, and organized and existing under the Community Redevelopment Law of the State of Crlifornia. The purpose of this Agreement is to effectuate the Redevelopment Plan for Riverside County Redevelopment Project Area No. 1988-1, as amended, of Agency (the "Project Area") in the City of Temecula, California, by facilitating 1he development of real property within the Project Area. the Redevelopment Plan has been approved and adopted by Ordinance No. 658 of the City of Temecula adopted June 12, 1988. B. Developer desires to acquire from Agency certain undeveloped property owned by Agency that is described on Exhibit "A" attached hereto (the "Property") and develop, construct and operate thereon the project ("Project") which include two phases (Phases 1 and 2) consisting of Subphases IA, 113, 1C and 1D and Subphases 2A, 213, 2C, 2D, 2E, 217, 2G and 2H, respectively, as described on Exhibit `B" attached hereto (the "Scope of Development"). The Developer is required to close on all subphases of Phase 1 (except Subphase 1 C) concurrently. C. The Developer acknowledges that the City of Temecula (the "City") and the Agency have legitimate municipal and redevelopment goals in assuring both an appropriate mix of commercial tenants in the Project and in assuring that the appropriate type of commercial tenants occupy the Project. It is the intent of the Developer and the Agency that these goals be achieved by conditions to be included in the conditional use permit for the Project or subphases thereof. D. The Developer also desires the Agency to make forgivable loans in the amount of Three Million Eight Hundred Thousand and Three Hundred Dollars ($3,800,300) (the "Agency Loan") for the purpose of financing the $1,078,000 purchase price of the land for Subphase IA of the Project and up to $2,722,300 of the Developer's costs of constructing low income housing as part of the apartment project comprising Subphase IA of the Project. The Loan is to be made pursuant to a Loan Agreement of even date herewith between Agency and Developer and is to be evidenced by promissory note (the "Promissory Note"), and secured by, among other things, a deed of trust, assignment of leases, and fixture filing encumbering Phase IA of the Property (the "Deed of Trust"). 11087-0001\741577vZdoc - 1 - E. The Developer must also obtain loans from recognized lending institutions to finance additional costs of construction and development of the Project (the "Project Loans"). It shall be a condition of the Developer's acquiring the land for each subphase of the Project that the Developer provide to Agency evidence acceptable to Agency that the Project Loan for, or allocated to, a subphase (plus, for Subphase IA, the Agency Loan) be sufficient to pay all of such costs of construction and development. The Agency has agreed to subordinate its Deed of Trust to one or more of the Project Loans approved by Agency, as further described herein, pursuant to the terms of a subordination agreement that must be acceptable to the Agency Executive Director in his sole and absolute discretion. F. The Project will assist in the elimination of blight in the Project Area and will substantially improve the economic and physical conditions in the Project Area in accordance vith the purposes and goals of the Redevelopment Plan. NOW, THEREFORE, the parties hereto agree as follows: ARTICLE 1. DEFINITIONS The following capitalized terms as used in this Agreement shall have the respective meanings set forth below: Section 1.1 Agency Loan shall mean, collectively, that certain forgivable loan in the amount of $3,800,300 to be made by Agency to Developer under this Agreement for the purpose of paying the $1,078,000 purchase price of the land for Subphase I of the Project and a portion of the construction costs of the apartment project comprising Subphase IA of the Project, which is to be evidenced by the Note and is to be forgiven upon the expiration of the term of the Regulatory Agreement provided Developer is not otherwise in default under this DDA or the Loan Documents; the Loan Agreement shall contain the terms and conditions for disbursement of the $2,722,300 portion of the Agency Loan that is to be disbursed for construction costs for the apartment project comprising Subphase IA of the Project. Section 1.2 Building shall mean the applicable building described by number on the Site Plan attached to the Scope of Development. Section 1.3 Certificate of Completion means a certificate substantially in the form attached hereto as Exhibit "C", to be provided by the Agency upon satisfaction of certain conditions as set forth h-.rein. Section 1.4 City means the City of Temecula, a municipal corporation. Section 1.5 Completion means all aspects of the Project (or a Phase thereof, as applicable) are substantially complete and the Developer has recorded a Notice of Completion for the Project or such Phase, as applicable. Section 1.6 Deed of Trust shall mean a Deed of Trust and Assignment of Leases (Including Fixture Filing) executed by Developer in favor of Agency encumbering subphase A that is in form and substance acceptable to Agency, and that secures the Agency Loan (consisting 11087-0001\741577v7.doc - 2 - of a purchase money loan in the amount of $1,078,000 for Subphase IA and the $2,722,300 construction loan for Subphase IA). Section 1.7 Developer means AGK Group, LLC, a California limited liability company. The principal office of the Developer is 35411 Paseo Viento, Capistrano Beach, California 92624. Section 1.8 Environmental Indemnity Agreement shall mean an environmental indemnity agreement executed by Developer in favor of Agency, as lender, which is acceptable in form and substance to Agency. 7.1. Section 1.9 Escrow Holder shall mean an escrow holder acceptable to the Agency. Section 1.10 Event of Default shall have the meaning ascribed to such term in Section Section 1.l l Force Majeure has the meaning ascribed to such term in Section 8.19. Section 1.12 Governmental Requirements means all applicable laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the State of California, the County of Riverside:, the City of Temecula, or any other political subdivision in which the Property is located, and of any other political subdivision, agency or instrumentality exercising jurisdiction over the Agency, the Developer or the Property, including, without limitation, all applicable prevailing wage laws and all applicable federal, state and local occupation, safety and health laws, rules, regulations and standards, applicable state labor standards, the City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City of Temecula Municipal Code, and all applicable disabled and handicapped access requirements, including, without limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., and the Unruh Civil Rights Act, Civil Code Section 51, et seq. Section 1.13 Grant Deed shall mean, for each Phase, a Grant Deed in the form of Exhibit "C" attached hereto. Section 1.14 Hazardous Materials shall include, but not be limited to, substances defined as "hazardous substances, " "hazardous materials, " "pollutant or contaminant," "imminently hazardous chemical substance or mixture, " "hazardous air pollutant, " "toxic pollutant, " "hazardous waste, " "extremely hazardous waste " or "toxic substances " in any of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §1801, et seq.; The Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq.; and those substances defined as "hazardous substances " in §25316 of the California Health & Safety Code; and in the regulations adopted and publications promulgated pursuant to said laws (collectively, "Hazardous Materials Laws"). Section 1.15 Higher Education Purposes shall mean the use of a Building for educational purposes by accredited educational institutions for: (i) graduate degree programs; (ii) four year degree programs; (iii) 2 year programs for associate degrees or suitable for 11087-000 1 \741577v7.doc - 3 - certificates or transfers to other educational institutions; (iv) continuing education programs; (v) accredited trade school programs; and (vi) workforce education programs. Section 1.16 Loan Agreement shall mean a loan agreement for the Agency Loan in form and substance acceptable to Agency. Section 1.17 Loan Documents shall have the meaning ascribed to such term in the Loan Agreement. Section 1.18 Note shall mean a promissory note evidencing the Agency Loan executed by Developer in favor of Agency and in form and substance acceptable to Agency. Section 1.19 SubDhases shall mean Subphase IA, 113, 1C, 1D, 2A, 213, 2C, 2D, 2E, 2F, 2G and 2H, as described in the Scope of Development and the Site Plan attached thereto. Section 1.20 Memorandum of DDA shall mean a Memorandum of DDA in the form attached hereto as Exhibit "E". Section 1.21 Project means the project described in the Scope of Development. Section 1.22 Schedule of Performance means the Project timetable attached hereto as Exhibit "D" and incorporated herein by this reference. Section 1.23 Regulatory Agreement shall mean that certain Regulatory Agreement pursuant to which Developer agrees to rent the Units (as defined in Section 1.27 below) in Phase A only to very low income households and extremely low income households (as such terms are defined in California Health and Safety Code Sections 50105 and 50106) at an affordable rent (as defined in California Health and Safety Code Section 50053). Section 1.24 Scope of Development means the description of the Project attached hereto as Exhibit `B" and incorporated herein by this reference. Section 1.25 Security Agreement shall mean a security agreement executed by Developer covering personal property relating to the Project or Property which is in form and substance acceptable to the Agency. Section 1.26 Transfer shall mean any transfer, conveyance or encumbrance by Developer, voluntarily or involuntarily, of the Property or any portion thereof or interest therein, except for any partial assignment in compliance with Section 8.15 below, any encumbrance of the Property permitted in this Agreement (such as a Project Loan approved by Agency), the granting of reasonable easements necessary for the Project, and the leasing of portions of the Project by Developer permitted by the Regulatory Agreement and Section 5.3 below. "Transfer" shall also mean any change in the ownership or control of Developer that results in either: (a) less than twenty percent (20% of the ownership interests in the Developer being owned by A.G. Kading and/or one or more family trusts for A.G. Kading's family of which A.G. Kading is a trustee; or (b) A.G. Kading not being the manager of the Developer with sole control over the day-to-day activities of Developer (including, without limitation, development of the Project). Developer hereby represents and warrants that A.G. Kading is the sole manager of Developer 11087-0001\741577v7.doc - 4 - with sole control over tl'ne day-to-day activities of the Developer (including, without limitation, development of the Project) and that A.G. Kading owns 20% or more of the Developer; provided, however, that if A. G. Kading dies or is incapacitated such that he is no longer in "control" of the Developer, the Developer may replace him with another reputable manager for the Developer who has significant experience in developing Projects similar to the Project and who is otherwise reasonably acceptable to Agency. Section 1.27 Units shall mean the low income rental housing units that are part of Subphase 1A and are described in the Regulatory Agreement; the Units shall consist of 25 one - bedroom units and 25 two -bedroom units, all of which will be restricted by covenants in the Regulatory Agreement that require that they be leased only to very low income persons and households at an affordable rent, in accordance with the California Community Redevelopment Law. ARTICLE 2. BASIC STRUCTURE: SALE OF LAND AND MAKING OF LOAN. In consideration for the Developer's performance of the Developer's obligations hereunder to construct and operate the Project (or portions thereof) in accordance with the terms hereof and sell the Units in accordance with the terms of the Regulatory Agreement, the Agency agrees to sell the Property to the Developer and make the Agency Loan to Developer subject to the terms and conditions herein and in the Loan Documents. ARTICLE 3. AGENCY SALE OF THE PROPERTY TO DEVELOPER Section 3.1 Sale of the Property by the Agency to the Developer. The Agency hereby agrees to sell the Prop-.rty to Developer, and Developer hereby agrees to buy the Property, subject to the terms and conditions hereinafter set forth. The Developer will close on and purchase all subphases of Phase 1 concurrently, and may close on and purchase all or any of the subphases of Phase 2 concurrently with its purchase of Phase 1 provided that the applicable conditions in Section 3.5 have been satisfied. Section 3.2 Purchase Prices. The purchase prices for the Subphases to be paid by Buyer to Agency are set forth on Exhibit "F" attached hereto. Section 3.3 Deposits. Concurrently with its execution and delivery of this Agreement, Developer shall deliver pro Agency the sum of One Hundred Thousand Dollars ($100,000.00) (the "Initial Deposit") by cashier's check. If the Close of Escrow (as defined in Section 3.5) for Phases 2A through 2H has not occurred by the date that is thirty-two (32) months after the date of this Agreement for any reason, the Developer shall deliver to Agency an additional deposit in the amount of One Hundred Thousand Dollars ($100,000.00) (the "Additional Deposit"); provided, however, that if the date for the Close of Escrow for Subphases IA, 1B and 1D shall have been extended for one (1) year as provided below, then such deadline relating to the delivery of the Additional Deposit shall also be extended by one (1) year. Agency may apply the Deposit and the Additional Deposit to costs and expenses heretofore or hereafter incurred by Agency in connection with this Agreement or the transaction or documents described in this Agreement (including., without limitation, legal fees, appraiser fees, the fees of financial/economic consultants and the fees of other consultants), and all portions so applied shall not be credited against the purchase prices for Subphases. Upon the Close of Escrow for 11087-0001\7415770.doc - 5 - Phases 1C and 1D, fifty percent (50%) of the then-unapplied portion of the Deposit held by Agency shall be credited toward the purchase price for Phase IC and the other fifty percent (50%) shall be credited toward the purchase price for Subphase 1D; upon the Close of Escrow for Subphases 2A through 2H, the then-unapplied portion of the Additional Deposit held by Agency shall be credited toward the purchase price for the applicable Subphase, provided that the amount of the Additional Deposit that may be applied to the purchase price for each such Subphase shall not exceed the amounts set forth below: Subphase 2A: $33,640.00 Subphase 2B: $14,017.00 Subphase 2C: $16,755.00 Subphase 2D: $3,690.00 Subphase 2E: $7,106.00 Subphase; 2F: $10,793.00 Subphase 2G: $4,277.00 Subphase 2H: $9,720.00 In the event that the Close of Escrow for Subphases IA, 1 B and ID has not occurred by the date that is sixteen (16) months after the date of this Agreement, then this Agreement shall terminate, and the Agency shall retain the entire Deposit as liquidated damages; provided, however, that: such date shall be extended by one (1) calendar year if, prior to such date, the following conditions are satisfied: (i) Developer increases the Deposit to $200,000 by delivering an additional $100,000 to the Agency (which shall become part of the Deposit); (ii) the Developer requests the extension in writing by the date that is fifteen (15) months after the date of this Agreement; (iii) the Planning Commission of the City of Temecula shall have approved the conditional use permit, tentative subdivision map and development plan for the Project; and (iv) the Developer shall have submitted for plan check comprehensive plans and specifications for Subphases IA, 113 and ID. In the event that the Close of Escrow for Subphases 2A through 2H has not occurred by the date that is four years and four months after the date of this Agreement for any reason other than a material default by the Agency, then this Agreement shall automatically terminate as to any phase not theretofore acquired by Developer and the Agency shall retain any unapplied portion of the Additional Deposit as liquidated damages; provided, however, that if the deadline for the Close of Escrow for Subphases IA, I and 1D shall have been extended by one year, then such deadline for the Close of Escrow for Subphases 2A through 2H shall also be extended by one (1) year if Developer is not then in, default under this DDA. IT IS HEREBY AGREED THAT IF DEVELOPER FAILS TO COMPLETE THE PURCHASE OF SUBPHASES IA, 1B AND 1D FOR ANY REASON OTHER THAN MATERIAL DEFAULT BY THE AGENCY, BY THE DATE THAT IS SIXTEEN (16) MONTHS AFTER THE DATE OF THIS DDA (OR ONE YEAR THEREAFTER IF THE 11087-0001\741577v7.doc - 6 - EXTENSION DESCRIBED ABOVE HAS OCCURRED), THE DEPOSIT SHALL BE NON- REFUNDABLE AND AGENCY SHALL BE ENTITLED TO RETAIN THE DEPOSIT, WHICH SHALL BE ACCEPTED BY AGENCY AS LIQUIDATED DAMAGES AND AS AGENCY'S SOLE AND EXCLUSIVE RIGHT AND REMEDY FOR SUCH FAILURE. AGENCY AND DEVELOPER HEREBY STIPULATE AND AGREE THAT THE AMOUNT OF THE DEPOSIT CCNSTITUTES A REASONABLE ESTIMATE OF THE COSTS AND DAMAGES TO AGENCY THAT WOULD RESULT FROM DEVELOPER'S FAILURE TO PURCHASE SUBPHASES IA, IB AND ID AND THAT IT WOULD BE IMPRACTICAL OR IMPOSSIBLE TO CALCULATE OR DETERMINE THE ACTUAL DAMAGE THAT AGENCY WOULD SUFFER UPON DEVELOPER'S FAILURE TO COMPLETE ITS PURCHASE OF SUBPHASES IA, 113 AND 1D AND FAILURE TO THEREAFTER BECOME BOUND TO COMPLY WITH THIS AGREEMENT WITH RESPECT TO SUBPHASES 1A, IB AND ID. DEVELOPER DESIRES TO LIMIT THE DAMAGES AND COSTS FOR WHICH IT MIGHT BE LIABLE HEREUNDER AS A RESULT OF SUCH FAILURES, AND BOTH AGENCY AND DEVELOPER DESIRE TO AVOID T E COSTS AND DELAYS OF LITIGATION.�/ AGENCY INITIALS DEVELOPER INITIALS IT IS HEREBY AGREED THAT IF DEVELOPER FAILS TO COMPLETE THE PURCHASE OF SUBPHASES 2A THROUGH 2H, INCLUSIVE, FOR ANY REASON OTHER THAN MATERIAL DEFAULT BY THE AGENCY, BY THE DATE THAT IS FOUR YEARS AND FOUR MONTHS AFTER THE DATE OF THIS AGREEMENT (OR ONE YEAR THEREAFTER IF THE APPLICABLE EXTENSION TO THE INITIAL CLOSING DATE FOR SUBPHASES IA, 113 AND ID DESCRIBED ABOVE HAS OCCURRED AND DEVELOPER IS NOT IN DEFAULT UNDER THIS DDA), THE ADDITIONAL DEPOSIT SHALL BE NON-REFUNDABLE AND AGENCY SHALL BE ENTITLED TO RETAIN THE ADDITIONAL DEPOSIT, WHICH SHALL BE ACCEPTED BY AGENCY AS LIQUIDATED DAMAGES AND AS .AGENCY'S SOLE AND EXCLUSIVE RIGHT AND REMEDY FOR SUCH FAILURE. AGENCY AND DEVELOPER HEREBY STIPULATE AND AGREE THAT THE AMOUNT OF THE ADDITIONAL DEPOSIT CONSTITUTES A REASONABLE ESTIMATE OF THE COSTS AND DAMAGES TO AGENCY THAT WOULD RESULT FROM DEVELOPER'S FAILURE TO PURCHASE SUBPHASES 2A THROUGH 2H, AND THAT IT WOULD BE IMPRACTICAL OR IMPOSSIBLE TO CALCULATE OR DETERMINE THE ACTUAL DAMAGE THAT AGENCY WOULD SUFFER UPON DEVELOPER'S FAILURE TO COMPLETE ITS PURCHASE OF SUBPHASES 2A THROUGH 2H. DEVELOPER DESIRES TO LIMIT THE DAMAGES AND COSTS FOR WHICH IT MIGHT BE LIABLE HEREUNDER AS A RESULT OF SUCH FAILURES, AND BOTH AGENCY AND DEVELOPER DESIRE TO AVOID THE COSTS AND DELAYS OF LITIC;ATTON AGENCY INITIALS Ae DEVELOPER INITIALS 11087-0001\741577v7.doc - 7 - Section 3.4 Closing Dates; Repayment of Portions of Preliminary Site Development Costs. The latest date for a Close of Escrow (defined in Section 3.5 below) for each Phase of the Property is described in the Schedule of Performance. Upon Developer's failure to timely close any of Subphases 2A through 211, and provided that Developer is not otherwise in default under this DDA or the Loan Documents, Agency shall pay to Developer a share of the actual costs incurred by Developer ]'or the Preliminary Site Development Work (as defined in the Scope of Development attached hereto as Exhibit `B") for each such Phase not acquired by Developer, calculated by multiplying the total amount of actual costs incurred by Developer for the Preliminary Site Development Work (as determined by Agency based on evidence submitted by Developer and Agency's verification thereof), by a fraction, the numerator of which is the area of the applicable Subphases not acquired by the Developer and the denominator of which is the area of all Subphases (:including both those acquired by Developer and those not acquired by Developer). Section 3.5 Conditions for Sales. The following events are conditions precedent to the Agency's sale of each Phase to the Developer, and the dates upon which the above conditions precedent have been fully satisfied by the Developer and/or waived in writing by the Agency with respect to a Phase, is referred to herein as the "Close of Escrow" for that Phase: (i) the Developer's inspection of the subphase, approval of the physical condition and all other aspects of the subphase and the delivery of copies of Developer's inspection reports and environmental studies to the Agency; (ii) the issuance to the Agency of an ALTA Lender's title policy (or endorsement to the title policy issued upon the closing of the first subphase acquired by Developer) (the "Title Policy") for the applicable subphase, which insures the Agency's Deed of Trust and is in form and substance and with endorsements reasonably satisfactory to the Agency; (iii) presentation to the Agency of evidence (such as insurance certificates) that the insurance required by Section 6.1 of this Agreement is in effect; (iv) the concurrent closing of the Project Loan(s) necessary to pay all development and construction costs for the applicable Phase (but in the case of Subphase IA, excluding costs to be paid by the Agency Loam) and delivery to the Agency of all documents evidencing or relating to said Project Loan(s); (v) execution and delivery to the Agency of the Promissory Note, Environmental Indemnity Agreement, Regulatory Agreement and Deed of Trust, and the recordation of the Deed of Trust and the Regulatory Agreement (against Subphase IA only) in the Official Records of Riverside County, Cadifornia; (vi) except for Subphase IA, execution, acknowledgment, and recordation of a "reciprocal easement agreement" (or amendment to the first such agreement) covering the applicable subphase and each other subphase (other than Subphase IA) theretofore acquired by Developer, each of which must be acceptable to Agency acting it good faith; (vii) delivery to Agency of a parking management plan for the entire Project, which must be acceptable in form and substance to Agency acting in good faith; 11087-0001\741577v7.doc - 8 - (viii) presentation to the Agency of a construction contract and bonds for the completion of the applicable subphase, as described in Section 4.5 below; (ix) presentation to the Agency of evidence establishing the financial feasibility of the applicable subphase of the Project (including, without limitation, development pro-formas showing sources and uses of funds and all costs of the applicable subphase), and approval by the Agency thereof; (x) for Subphases 2A — 2H, the acquisition of Subphases IA, 1B, 1C and 1D by Developer pursuant to the terms of this Agreement (which may close concurrently with all or any of Subphases 2A — 2H); (xi) for the first Close of Escrow, the execution, acknowledgment and recordation of a Memorandum of DDA for the entire Property; (xii) delivery to the Agency of evidence acceptable to the Agency that all permits and governmental approvals for the development of the applicable subphase in accordance with this Agreement have been issued or are ready to be issued, all development -related fees for the applicable Subphase (including, without limitation, DIF and TUMF fees and exactions and all permit fees) have been paid, and there are no unsatisfied conditions to the issuance of any such approvals or permits; (xiii) except for Subphase 1A, Building 1 (the conference center), Building 5 (the amphitheater) and the loft units in Building 10, delivery to the Agency of copies of executed leases acceptable to the Agency with tenants acceptable to the Agency for at least fifty percent (50%) of the rentable area of buildings to be constructed on the applicable subphase; (xiv) delivery to the Agency of final plans and specifications for the applicable subphase, and approval thereof by the Agency (which shall not constitute approval by the City); and (xv) approval by the Agency of this Agreement; (xvi) the absence: of a default by Developer under this DDA, the Regulatory Agreement and the Loan Documents; (xvii) the compliance of the applicable subphase with all subdivision laws i.e., each Phase being acquired must constitute, a separate, subdivided parcel); and (xviii) with respect to the first closing i.e., the Close of Escrow for Subphases IA, 1B and 1D and possibly 1C), the concurrent closing of the Agency Loan for Subphase IA and the execution and delivery of an Intercreditor Agreement by the lender of the Project Loan for Subphase IA that is acceptable to Agency in good faith (which must provide, among other things, for the disbursement of the construction loan portion of the Agency Loan by such lender in accordance with such lender's normal construction disbursement conditions, rights for the Agency to cure defaults under the Project Loan for Subphase I that are acceptable to Agency, and the lender's agreement to the forbearance obligation and prepayment and loan purchase rights described in Sections 7.6a, b and e below). 11087-0001 V41577v7.doc - 9 - Section 3.6 Title. Within thirty (30) days after its approval and execution of this Agreement, Agency shall deliver to Developer a title report for the Property with copies of the documents listed as tithe exceptions therein. Developer shall have thirty (30) days after such delivery to object to such exceptions to title. If Developer does not object in writing to an exception within said thirty (30) day period, Developer shall be deemed to have approved such exception. If Developer timely objects in writing to any exception, Agency may either terminate this Agreement by wrilten notice given within 10 days after receipt of Developer's written notice, or Agency may attempt in good faith to remove such exception prior to Close of Escrow for Subphases IA, IB and 1D, and if Agency is unable to remove the exception prior to the Close of Escrow for Subphases IA, I and 1D, than either party may terminate this Agreement (and shall not be obligated to purchase or sell Subphases IA, 1B, I or any other Subphase). In no event shall Agency be obligated to expend any material sum or sums attempting to remove any title exception. The: Memorandum of DDA, the Deed of Trust (for Subphase 1A only), the Regulatory Agreement (for Subphase IA only) and any applicable REA required as a condition of the Closing of the Sale of the applicable subphase shall be exceptions to title and are hereby approved by Developer as exceptions to title. Escrow Agent (as defined in Section 3.4) shall, following the recording of each deed to Developer, provide Developer with an ALTA Standard Coverage Policy of Title Insurance (or endorsement thereto) in the amount of the purchase price for the subphase being acquired, issued by the Title Company, showing the title to the property vested in Developer, subject to the applicable title exceptions (the "Developer Title Policy"). Developer shall be responsible for the cost of all ALTA extended coverage, all endorsements and the cost of an ALTA survey, if performed by Developer. Section 3.7 Escrow And Escrow Instructions. Upon the execution of this Agreement, Developer and Agency shall deliver a copy of this Agreement to Escrow Holder and shall open an escrow for the transactions described herein. This Agreement constitutes the joint escrow instructions of Developer and Agency to Escrow Holder in connection with the transactions described herein. Developer and Agency may supplement such escrow instructions and agree to execute such reasonable supplemental escrow instructions as may be required by Escrow Holder. Section 3.8 Deposit Of Documents And Funds In Escrow. Agency and Developer, as applicable, hereby covenant and agree to deliver at least one (1) day prior to the Close of Escrow for any subphase the following instruments, documents, and funds, the delivery of each of which shall be a condition of the Close of Escrow for that subphase. Section 3.8.1 Agency shall deliver to Escrow: (i) A Grant Deed in the form of Exhibit `B" attached hereto for the applicable subphase duly executed and acknowledged by Agency; (ii) Such funds as are required to pay for costs and expenses payable by Agency hereunder; (iii) For the first Close of Escrow, a counterpart Memorandum of DDA duly executed and acknowledged by Agency (the "Memo of DDA"); 11087-0001\741577v7.doc - 10 - (iv) a FIRPTA affidavit and a California form 593; and (v) Such proof of Agency's authority and authorization to enter into this transaction as the Title Company may reasonably require in order to issue the Title Policy. Section 3.8.2 Developer shall deliver to Escrow the Deed of Trust (for the Subphase IA closing only), the Regulatory Agreement (for the Subphase 1A closing only), and the Memo of DDA, all duly executed and acknowledged, together with such additional funds as are required to pay for costs and expenses payable by Developer hereunder. Section 3.8.3 Developer shall deliver directly to Agency the Note, the Security Agreement and the Environmental Indemnity Agreement. Section 3.9 _Authorization To Record Documents And Disburse Funds. Escrow Holder is hereby authorized to record the documents and disburse the funds and distribute the documents called for hereunder upon the Close of Escrow, provided each of the following conditions has then been fulfilled: Section 3.9.1 The Title Company is irrevocably committed to issue in favor of Developer the Developer Title Policy, with a liability amount equal to the applicable purchase price for the subphase being acquired, showing fee title to such subphase vested in Developer, subject only to the applicable title exceptions; Section 3.9.2 The Title Company is irrevocably committed to issue an ALTA lender's title policy (Form B - 1970) to Agency in the amount of the Agency Loan, subject only to the Permitted Exceptions, with the same endorsements as the Developer's Title Policy and such additional endorsements as may be reasonably required by Agency; Section 3.9.3 Escrow Holder shall have received Agency's authorization to close; Section 3.9.4 Agency and Developer shall have deposited in Escrow the documents and funds required to be deposited in Escrow pursuant to Section 3.8.1 and 3.8.2, and Developer shall have delivered to Agency the documents it is required to deliver directly to Agency under Section 3.8.3 above. Unless otherwise instructed in writing, Escrow Holder is authorized to record at the Close of Escrow any instrument delivered to Escrow Holder if necessary or proper for the issuance of the Title Policy. Section 3.10 Escrow Charges And Prorations. Section 3.10.1 Agency shall pay: (i) the cost of the premium for the CLTA Standard Coverage portion of the Developer Title Policy; (ii) all costs and charges for recording the applicable deed (if any; there should be more due to exemption for public entities); and (iii) Agency's share of other charges prorated under the terms of this 11087-0001\741577v7.doc - 11 - Agreement. If the Escrow shall fail to close for any reason other than Agency's default, Agency shall pay one-half (1/2) of any applicable Escrow cancellation charges; Agency shall pay all such cancellation charges if the failure to close is caused by Agency's default. Section 3.10.2 Developer shall pay: (i) one-half (1/2) of the escrow fees and charges of Escrow Holder; (ii) the cost of the premium for the Developer Title Policy in excess of the premium for a CLTA Standard Coverage policy, if any, and the cost of the premiums for Agency's title insurance; (iii) the cost of all endorsements to the Developer Title Policy; (iv) all documentary or other local transfer taxes payable upon the recordation of the applicable deed; and (v) Developer's share of other charges prorated under the terms of this Agreement; and (vi) the cost of an ALTA survey, if required by Developer. If the Escrow shall fail to close for any reason other than Developer's default, Developer shall pay one-half (1/2) of any applicable Escrow cancellation charges; Developer shall pay all such cancellation charges if the failure to close is caused by Developer's default. Section 3.10.3 The following shall be apportioned with respect to a subphase as of 12:01 a.m., on the day on which the Close of Escrow occurs, as if Developer were vested with title to the subphase during the entire day upon which the Close of Escrow occurs: (i) taxes and assessments levied against the applicable subphase; and (ii) any other operating expenses or other items pertaining to the applicable subphase. Section 3.10.4 Notwithstanding anything contained in Section 3.7.3, any installment of taxes or assessments for the current year paid at or prior to the Close of Escrow for a subphase shall be prorated based upon the amounts actually paid. If taxes and assessments for the current year have not been paid before the Close of Escrow for a subphase, Agency shall be charged at the Close of Escrow an amount equal to that portion of such taxes and assessments which relates to the period before the Close of Escrow and Developer shall pay the taxes and assessments prior to their becoming delinquent. Any such apportionment made with respect to a tax year for which the tax rate or assessed valuation, or both, have not yet been fixed shall be based upon the tax rate and/or assessed valuation last fixed. To the extent that the actual taxes and assessments for the current year differ from the amount apportioned at the Close of Escrow for a subphase, the parties shall make all necessary adjustments by appropriate payments between themselves following the Close of Escrow for that subphase. All delinquent taxes and assessments (and any penalties therein) for periods prior to the Close of Escrow for a subphase, if any, affecting the Property shall be paid by Agency. Section 3.10.5 All prorations shall be determined on the basis of a 360-day year. The provisions of this Section shall survive the Close of Escrow. 11087-0001\741577v7.doc - 12 - Section 3.11 Survey. Subject to Section 3.12, Developer, at Developer's sole cost and expense, may obtain an ALTA survey of the Property prepared by a registered land surveyor licensed by the State of California. Section 3.12 Preliminary Soil Testing and Physical Condition Inspections. It is understood and agreed upon and between the parties hereto that Developer's acquisition of each subphase is subject to znd conditioned upon its inspection of the Property, including, without limitation, soils conditions and the absence from the Property of Hazardous Substance. Promptly after the execution of this Agreement, Agency will deliver to Developer copies of material documents, reports, and correspondence in the Agency's possession that relate to the physical condition of the Property. Until the date that is six (6) months after the date of this Agreement (the "Inspection Deadline"), Developer and its agents may enter upon the Property upon twenty- four (24) hour prior written notice sent to the Agency in order to investigate the physical condition of the entire Property; provided, however, that Agency's agent may request to be present during such inspections, and Developer shall reasonably accommodate Agency in arranging a mutually convenient inspection time so that Agency or Agency's agents may be present. It is understood and agreed that the right of Developer and Developer's agents to enter onto the Property is being given solely to Developer, and Developer shall be solely responsible for its agents and that such inspections and actions are being done to determine the condition of the Property and not with the intent to affect the Property's value. Such inspections shall include, but not be linuted to, the condition of soils, storm drainage, utility hookups and archaeological testing. Developer shall indemnify, defend and hold Agency harmless from and against any claims whether by Developer, Developer's agents and employees, or by third parties resulting from Developer's entry upon or the conduction of any tests of the Property. If this Agreement is terminated or if escrow fails to close for any reason, Developer shall promptly restore the applicable Subphases not yet acquired by Developer to the same condition as existed prior to Developer's undertaking of any testing thereon. All studies and reports prepared in connection with Developer's inspection of the Property are to be done at the expense of Developer; provided, that Developer shall provide Agency with a copy of all of the reports without cost promptly upon receipt by Developer. Developer's obligations and duties hereunder shall survive and remain upon the completion of the closing or upon the termination of this Agreement for any reason. Developer, in its sole discretion, may elect to terminate this Agreement and cancel Escrow in the event any physical conditions are not reasonably acceptable to Developer by giving written notice of such termination to Agency on or before the Inspection Deadline (as defined above), in which event Agency shall return the then-unapplied portion of the Deposit to Developer. Section 3.13 "AS -IS" Condition of the Property. Developer agrees that it will purchase the Property in its "AS -IS" condition, with all faults, and without representation or warranty, express or implied. Section 3.14 Brokers' Commissions. Developer represents and warrants to Agency that Developer has used no broker, agent, finder or other person in connection with the transaction contemplated hereby to whom a brokerage or other commission or fee may be payable. Agency represents and warrants to Developer that Agency has used no broker, agent, finder or other person in connection with the transaction contemplated hereby to whom a brokerage or other commission or fee may be payable. Each party indemnifies and agrees to defend and hold the 11os7-0001\741s77vzdoc - 13 - other harmless from any claims, liabilities, costs, expenses and damages resulting from any breach by the indemnifying party of the warranties, representations and covenants in this Section. ARTICLE 4. CONSTR.UCTION AND FINANCING OF THE PROJECT. Section 4.1 Proiect Improvements. The Developer agrees to construct the Project in accordance with and within the limitations established in this Agreement and the Scope of Development, and within the time periods set forth in the Schedule of Performance. The Developer shall also construct the Project in accordance with all permits and in accordance with the Plans and Specifications approved by the Agency. Section 4.2 Project Costs. The cost of the Project shall be borne solely by the Developer, except that the Developer shall pay for a portion of the costs of Subphase IA (representing costs of constructing the Units) with a portion of the Agency Loan, as provided in the Loan Documents. Notwithstanding the foregoing, the Project costs shall not constitute nor, on the basis of the Agency Loan be deemed, an obligation of the Agency. Section 4.3 Land Use Approvals. Before commencement of the Project, the Developer shall, at its own expense, secure any and all land use and other entitlements, subdivisions, zone changes, lot line adjustments, conditional use permits, grading permits, building permits and other permits, environmental reviews and approvals and any other approvals which may be required for the Project by the City or any other governmental agency affected by such construction or work, including the City's Community Development Department (the "Land Use Approvals"). The Developer shall carry out the Project in conformity with all applicable Governmental Requirements including, without limitation, any applicable prevailing wage laws. The Developer shall, without limitation, apply for and secure the following, and pay all costs, charges and fees associated therewith: Section 4.3.1 All permits and fees required by the City of Temecula, the County of Riverside, and. other governmental agencies with jurisdiction over the Project; and Section 4.3.2 Any environmental studies, documents and approvals required pursuant to the California Environmental Quality Act. The Agency staff will work cooperatively with the Developer to assist in coordinating the expeditious processing, consideration, and securing of all Land Use Approvals. However, the execution of this Agreement does not constitute the granting of or a commitment to obtain any Land Use Approvals required by the Agency or the City. Section 4.4 Subordination to Project Loan for Subphase IA. The Agency will subordinate the Deed of Trust to the lien securing the primary construction loan for Subphase 1 A provided Developer is not in default under this Agreement and provided, further, that the Executive Director of the Agency shall have reasonably approved the terms of the construction financing and the terms of the subordination. Section 4.5 Construction Contract and Bonds. Developer shall deliver to the Agency a copy of the construction contract for a subphase, together with payment and performance bonds 11087-0001\741577v7.doc - 14 - in the form of AIA form A311 or A312 issued by a surety acceptable to Agency in the amount of the construction contract and naming Agency as co -obligee, as a condition to the closing on such subphase. The construction contract shall obligate a reputable and financially responsible general contractor reasonably acceptable to the Agency, licensed in California, and experienced in completing the type of Project herein contemplated, to commence and complete the applicable portion of the Project in accordance with this Agreement and all applicable federal, state and local laws, rules and regulations. The construction contract shall set forth a stipulated sum or guaranteed maximum price for the applicable portion of the Project. The construction contract shall provide for the customary and reasonable retentions, but at least ten percent (10%) from each progress payment (except there shall be no retention for any items excused from retention when approved by the Agency in writing in a separate document) until the final payment. The Agency shall have the right, at the Agency's expense, at any time, including, without limitation, during or following the completion of the applicable portion of the Project, to audit Developer's books and records to insure such parties' compliance with the terns thereof, and the Developer shall insure that such construction contract and all subcontracts shall include a provisions setting forth Agency audit rights. The construction contract and any other contracts shall also provide for a warranty satisfactory to the Agency that the applicable portion of the Project shall be free from defects for a period of at least one (1) year from and after the date of filing of the Notice of Completion, and all fixtures and other personal property installed in connection with the applicable portion of the Project shall be free from defects for the tern provided by their manufacturer. Section 4.6 Preliminary Notices. The Developer agrees that copies of all preliminary notices delivered pursuant to Section 3097 of the California Civil Code (i) to the Developer and (ii) to the Property, addressed to "City of Temecula," "Temecula Redevelopment Agency," or the like shall be promptly delivered to the Agency. The Developer further agrees that the Agency and the Agency's agents shall have the right at all times to enter upon the Property and post such notices and other written or printed material thereon as it may deem necessary or desirable for its protection. Section 4.7 N[echanic's Liens. In the event of the recording of a mechanic's lien pursuant to Title 15, Part 4, Division 3 of the Civil Code of the State of California relating to works of improvement upon real property, the Developer's failure to cause such mechanic's lien to be released or failure to furnish the Agency with a bond causing such lien to be released, which thirty (30) days of the earlier of the Developer's receipt or knowledge of same, such failure shall constitute ail Event of Default under this Agreement. Section 4.8 Deadlines for Completion of the Project. The Developer shall commence and complete the Project as provided in the Schedule of Completion, and shall otherwise timely comply in all respects with the Schedule of Completion, and failure to do so shall be an Event of Default and shall entitle the Agency, in the Agency's sole, exclusive and absolute discretion, to terminate this Agreement and declare all funds advanced under the Loan Agreement immediately due and payable, in accordance with the terms thereof. Section 4.9 Progress of Project During construction of the Project, the Developer shall submit to the Agency a monthly written report reasonably detailing the progress of the Project in accordance with the Schedule of Performance. The report shall be in such form and 11087-0001\741577v7.doc - 15 - detail as is required reasonably to inform the Agency of the status of the Project, and shall include a reasonable number of photographs (if requested to do so by the Executive Director of the Agency) taken since the last report by the Developer. Section 4.10 Rii¢hts of Access In addition to those rights of access to and across the Property to which the Agency and the City may be entitled by law, designated representatives of the staffs of the Agency and the City shall have the right of access to the Project, without charge or fee, with forty-eight (48) hours prior notice to inspect the work being performed at the Property. Section 4.11 Local. State and Federal Laws The Developer shall carry out the design, construction, and operation of the Project in conformity with all applicable Governmental Requirements, including, without limitation, all prevailing wage, relocation and relocation assistance requirements under federal, state and local law. The Developer agrees to defend, indemnify and hold harmless the Agency in connection with any claims, losses, costs, expenses, damages or liabilities arising out of Developer's failure to comply with this Section. Section 4.12 Anti -discrimination In Project Performance The Developer shall not discriminate against any employee or applicant for employment because of age, sex, marital status, race, handicap, color, religion, creed, ancestry, or national origin in connection with the construction or operation of the Project. Section 4.13 Certificate of Completion Upon completion of each subphase of the Project (except for miner punch -list items that do not interfere with the use, operation or leasing of the applicable subphase), the Agency shall, promptly following receipt of written request by the Developer therefor, furnish to the Developer a Certificate of Completion for the applicable Phase. The Certificate of Completion shall be in the form of Exhibit "G" attached hereto, and shall be recorded in the County Recorder's Office of Riverside County. The Certificate of Completion shall be, and shall so state, a conclusive determination of satisfactory Completion of the Phase as required by this Agreement. The Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any holder of a mortgage, trust deed or other security instrument (other than Agency). Such Certificate of Completion shall not be construed as a notice of completion as described in California Civil Code Section 3093. Section 4.14 Hazardous Materials. Section 4.14.1 The Agency makes no representations or warranties, express or implied, whatsoever to the Developer as to the condition of any portion of the Property, including but not limited to whether the Property contains any Hazardous Materials. If the Property is not in a condition suitable for the use or uses to which they shall be put, then it is the sole responsibility and obligation of the Developer to take such action as may be necessary to place the Property in a condition suitable for the Project. The Developer acknowledges and agrees specifically that the Agency shall have no responsibility or obligation with respect to the abatement of asbestos or any other Hazardous Materials on the Property. 11087-0001\741577v7.doc - 16 - Section 4.14.2 The Developer, on behalf of itself and its successors, affiliates, partners, and assigns, agrees to indemnify, protect, defend and hold harmless the Agency and the City (as a third -party beneficiary hereof), including, but not limited to, the City's and the Agency's servants, employees, agents, representatives, successors, administrators, assigns, and attorneys, and of each of them alone, from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising our: of, or based upon the past, present and future (i) the presence, release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, the Property or the transportation of any such Hazardous Materials to or from the Property, as a result of the Project or otherwise, or (ii) violation, or alleged violation, of compliance with the requirements of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal of Hazardous Materials on, in or about the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, or expense, including without limitation, attorney fees, arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment, and the cost of clean-up of the Property, or any portion thereof, or any improvements thereon, caused by or resulting fiom any Hazardous Material, or toxic substances or waste existing on, under, about or adjacent to the Property. Section 4.14.3 THE DEVELOPER, ON BEHALF OF ITSELF AND ITS SUCCESSORS, AFFILIATES, MEMBERS, PARTNERS, AND ASSIGNS, HEREBY FULLY AND ENTIRELY RELEASES AND DISCHARGES THE CITY (AS A THIRD PARTY BENEFICIARY HEREOF) AND THE AGENCY (INCLUDING, BUT NOT LIMITED TO, THE CITY'S AND THE AGENCY'S SERVANTS, EMPLOYEES, AGENTS, REPRESENTATIVES, SUCCESSORS, ADMINISTRATORS, ASSIGNS, AND ATTORNEYS), AND OF EACH OF THEM, OF AND FROM ANY AND ALL CLAIMS, CAUSES OF ACTION, DEMANDS, LIABILITIES, DAMAGES, AND LOSSES, OF WHATEVER NATURE, ANTICIPATED OR UNANTICIPATED, KNOWN OR UNKNOWN, ON ACCOUNT OF THE PRESENCE OF ANY HAZARDOUS MATERIALS IN, ON, UNDER, OR ABOUT THE PROPERTY OR IN CONNECTION WITH, OR IN ANY WAY RELATED TO THE PROPERTY. THIS RELEASE CONSTITUTES AN EXPLICIT WAIVER BY THE DEVELOPER OF EACH AND ALL OF THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH STATES AS FOLLOWS: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWNI)Y HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT W H THE DEBTOR." Developer's Initials: 11087-0001\741577v7.doc - 17 - Section 4.14.4 The Developer hereby declares and represents that it is effecting and executing this release of the City and the Agency after having read all of this release and with full understanding of its meaning and effect and after having received full legal advice as to its rights from an attorney. ARTICLE 5. USE OF THE PROPERTY; RESTRICTION ON TRANSFERS Section 5.1 Use Covenant for Buildings 2, 3 and 4. Until the date that is twenty (20) years after the completion of all of Buildings 2, 3 and 4, said Buildings 2, 3 and 4 shall be used for Higher Education Purposes, and for no other purposes without the prior, express written consent of the Agency in its sole and absolute discretion; provided, however, that after the date that is ten (10) years after the completion of Buildings 2, 3 and 4, if any lease of all or a portion of Buildings 2, 3 and 4 is terminated as a result of a material default by a tenant thereunder, or if such a lease expires by virtue of its terms, and Developer provides to the Agency evidence reasonably acceptable to the Agency that the Developer has exercised diligent efforts to lease the vacant space for Higher Education Purposes but has been unable to do so, then the Developer may lease such vacant space to a tenant reasonably approved by the Agency for a use which complies with Section 5.3 below. Section 5.2 Restrictions on Transfers. No Transfer may occur with respect to a Phase prior to the latest of the following: (i) the completion of the Preliminary Site Development Work; (ii) issuance of a Certificate of Completion for Subphases IA, 113, 1C and 1D; and (ii) issuance of a Certificate of Completion for the Phase with respect to which the Transfer is to occur. Section 5.3 Leases. All leases and tenants of the Project or any portion thereof shall (i) be subject to any applicable terms and conditions of the conditional use permit(s) for the Project; and (ii) shall constitute a use permitted under Temecula Municipal Code Sections 17.08 (NC or Neighborhood Commercial) or 17.12 (PI or Public/Institutional) (except for leases of apartments and loft units, which with respect to the Units, shall be governed by the Regulatory Agreement). Upon any termination of this Agreement (or reversion of any Subphase to Agency), Developer shall, at the written request of Agency, assign to Agency all of its right, title and interest in, under and to any leases executed by Developer with respect to portions of the Project that have then not yet been conveyed to Developer (or with respect to the reverting Subphase, as applicable, subject to the lien in favor of the primary construction lender) that are designated by Agency in such written request to be assigned to Agency. Developer shall include in all leases the requirement that the tenant attom to the Agency at the Agency's request and recognize the Agency as landlord under the lease and a provision to the effect that if Agency does not own the leased property at the time of the request, then the attornment and recognition shall be conditioned upon Agency's acquiring title to the leased property. Each lease shall also provide that Agency shall not tie (i) liable for any acts or omissions of the Developer or any security deposit paid to the Developer and not to the Agency; or (ii) bound by any material lease amendment not approved in writing by Agency. Section 5.4 Obligation to Refrain from Discrimination The Developer shall not restrict the rental, sale or lease of the Property or any portion thereof on the basis of sex, age, 11087-0001\741577v7.doc - 18 - handicap, marital status, race, color, religion, creed, ancestry or national origin of any person. The covenants contained in this Section 5.3 shall remain in effect in perpetuity. Section 5.5 Form of Nondiscrimination and Nonseareization Clauses All deeds, leases and contracts relating to the sale, transfer or leasing of the Property or any interest therein shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: A. In. deeds: "The grantee herein covenants by and for himself, his heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of sex, marital status, race, age, handicap, color, religion, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land. " B. In leases: "The lessee herein covenants by and for himself, his heirs, executors, administrators and assigns, and all persons claiming under or through him, that this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons on account of sex, marital status, race, age, handicap, color, religion, creed, national origin or ancestry, in the leasing, subleasing, transferring, use, or enjoyment of the land herein leased, nor shall the lessee himself, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy, of tenants, lessees, sublessees, subtenants or vendees in the land herein leased." C. In contracts: "Each party hereto herein covenants by and for himself, his heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, ancestry, national origin, age, physical handicap in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land. " Section 5.6 Amendments to Reciprocal Easement Agreements and Parking Management Plan. Developer shall not amend, supplement or otherwise alter any "reciprocal easement agreement" or the parking management plan approved by Agency without giving Agency at least thirty (30) days' prior written notice of the amendment, and if the amendment might affect any Phase owned by Agency or any Phase in which Agency has a reversionary right or a lien, then such amendment shall be subject to the prior written consent of the Agency. 11087-0001V415770.doc - 19 - ARTICLE 6. INSURANCE: INDEMNITY Section 6.1 Insurance. Until the repayment of the Agency Loan, Developer shall maintain the insurance required by the Loan Agreement. Thereafter, Developer (and its successors and assigns) shall comply with the following provisions with respect to their interest (if any) in the Property or improvements thereon: Section 6.1.1 Developer shall obtain and maintain at no cost or expense to the Agency, with a reputable and financially responsible insurance company reasonably acceptable to the Agency, both commercial broad form general public liability insurance, (insuring against claims and liability for bodily injury, death, or property damage arising from the construction, use, occupancy, condition, or operation of the Project) and automobile liability insurance. Such general public liability insurance and automobile insurance shall each provide combined single limit protection of at least $2,000,000. Such insurance policy(s) shall name the City and the Agency and their elected officials, council members, board members, officers, employees, consultants, independent contractors, attorneys and servants as additional insureds. Section 6.1.2 Before commencement of any work by Developer on any portion of the Property, Developer shall obtain and maintain in force until completion of such work (i) "all risk " builder's risk insurance with a combined single limit of at least $2,000,000, including coverage for vandalism and malicious mischief, in a form and with a company reasonably acceptable to the Agency, and (ii) workers' compensation insurance covering all persons employed by Developer in connection with work on the Project, or any portion thereof. Such builder's risk insurance shall cover improvements in place and all material and equipment at the job site furnished under contract, but shall exclude contractors', subcontractors', and construction managers' tools and equipment and property owned by contractors' and subcontractors' employees. Section 6.1.3 Developer shall also famish or cause to be furnished to the Agency evidence satisfactory to the Agency that any contractor with whom it has contracted for the performance of work on the Property or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. Section 6.1.4 With respect to each policy of insurance required above, Developer and each of Developer's general contractors shall furnish to the Agency an insurance certificate on the insurance carrier's form setting forth the general provisions of the insurance coverage (as well as a copy of each insurance policy promptly upon receipt by Developer). The required certificate shall be furnished by Developer prior to commencement of the Project. Section 6.1.5 All such policies required by this Section shall be issued by responsible insurance companies licensed to do business in California with an A.M. Best's rating of no less than A:VIII, be primary and noncontributing, shall be nonassessable and shall contain language to the effect that (i) the policies cannot be canceled or materially changed except after thirty (30) days' written notice by the insurer to the Agency by certified mail, and (ii) the Agency shall not be liable for any premiums 11087-0001\741577v7.doc - 20 - or assessments. All such insurance shall have deductibility limits which shall be commercially reasonable. Section 6.1.6 Each policy of insurance required above shall include a waiver by the insurer of all rights it may have to be subrogated to rights against Agency (or its elected officials, council members, board members, officers, employees, agents and representatives) in connection with any insured loss, and Developer hereby waives any rights it may have against such persons or entities in connection with matters covered by insurance. Section 6.1.7 From and after the execution of this Agreement, and in addition to any obligations of Developer under the Loan Agreement, Developer hereby agrees to indemnify, defend, protect, and hold harmless the Agency and the City (as a third party beneficiary) and any and all agents, employees and representatives of the Agency and the City, from and against all losses, liabilities, claims, damages (including foreseeable or unforeseeable consequential damages), penalties, fines, forfeitures, costs and expenses (including all reasonable out-of-pocket litigation costs and reasonable attorney's fees) and demands of any nature whatsoever, related directly or indirectly to, or arising out of or in connection with: (i) relocation activities in connection with the Project, (ii) any breach or default by Developer under this Agreement, or (iii) any of Developer's activities on the Property (or the activities of Developer's agents, employees, lessees, representatives, licensees, guests, invitees, contractors, subcontractors, or independent contractors on the Property), and (iv) any other acts, occurrences, omissions or other matters relating to a Phase that take place or exist prior to the Close of Escrow for that Phase, in each case, regardless of whether such losses, liabilities, claims, damages, fines, forfeitures, costs, expenses and demands shall accrue or are discovered before or after termination or expiration of this Agreement. Developer shall defend, at its expense, including attorneys' fees, the Agency and the City, and the Agency's and the City's council members, board members, officers, agents, attorneys, consultants, independent contractors, servants and employees in any legal action based upon items (i) through (iv) above or any of them. The Agency and the City may in their discretion, and at their own cost, participate in the defense of any such legal action. The provisions of this Section shall survive the Closing or the termination of this Agreement as applicable. Section 6.1.8 Developer represents and warrants that it has provided a copy of this Agreement to its insurers and that the insurers are aware of all of the obligations of Developer under this Agreement. 11087-0001\7415770.doc - 21 - ARTICLE 7. EVENTS OF DEFAULT AND REMEDIES Section 7.1 Events of Default. The occurrence of any of the following shall constitute an Event of Default under this Agreement: Section 7.1.1 The occurrence of an Event of Default under the Loan Agreement; Section 7.1.2 Any breach of this Agreement not described below in this Section 7.1 which is not cured within thirty (30) days after written notice from Agency provided, however, if such cure cannot reasonably be effected with such 30-day period, such failure shall not be an Event of Default so long as the developer promptly (in any event, within thirty (30) days after such notice is given) commences a cure, and thereafter diligently prosecutes such cure to completion. Section 7.1.3 The Developer's neglect, failure or refusal to keep in force and effect any permit or approval necessary for the Project. Section 7.1.4 The filing of a petition in bankruptcy by or against the Developer, or its general partner, or appointment of a receiver or trustee of any property of the Developer, or an assignment by the Developer for the benefit of creditors, or adjudication that the Developer is insolvent by a court (provided that in the case of bankruptcy filing against Developer or the appointment of a receiver or trustee at the request of a third party, an Event of Default by the Developer shall not be deemed to have occurred unless Developer fails to cause such filing or appointment to be removed or discharged within sixty (60) days). Section 7.1.5 The Developer's failure to comply with the Schedule of Performance. Section 7.1.6 Abandonment or substantial suspension of construction of the Project by the Developer for a period of thirty (30) days after written notice of such abandonment or suspension from the Agency. Section 7.1.7 Failure to cause a mechanic's lien to be released (by statutory release bond, payment or otherwise) within thirty (30) days after the earlier of Developer's receipt or knowledge of the same, as provided in Section 4.7; provided that if the lien affects Subphase IA (or any portion of the Property then owned by Agency which is being improved with preliminary site development work) and the Developer is contesting the lien in good faith and obtains a statutory release bond, but the lien is not released of record within such thirty (30) day period, then Developer must also cause an endorsement to Agency's lender's or owner's title policy (as applicable) to be issued at Developer's expense within such thirty (30) day period which "insures over" the lien. Section 7.1.8 The occurrence of a Transfer with respect to a Phase prior to the latest of the following: (i) the completion of the Preliminary Site Development Work for the entire Project; (ii) issuance of a Certificate of Completion for Subphases IA, 113 and 1D; (iii) the issuance of a Certificate of Completion for the Subphase with respect to which a Transfer is to occur. 11087-0001\741577v7.doc - 22 - Section 7.2 Developer's Remedies. The Developer's sole remedies for the Agency's breach of this Agreement shall be: (a) to institute an action in equity to seek mandamus or specific performance of the terms of this Agreement, or (b) to terminate this Agreement. In no event shall the Agency be liable for damages. Section 7.3 Agency's Remedies If any Event of Default by Developer occurs, then the Agency shall be entitled to all remedies available at law or in equity, including, without limitation, specific performance. Section 7.4 Inaction Not a Waiver of Default Except as expressly provided in this Agreement to the contrary, any failures or delays by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive either such party of its rights to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. Section 7.5 Notice of Default to Mortgage, Deed of Trust or Other Security Interest Holders; Right to Cure_ Whenever the Agency shall deliver any notice or demand to the Developer with respect to any Event of Default by the Developer, the Agency shall at the same time deliver a copy of :such notice or demand to each holder of a Project Loan ("Holder") from whom the Agency has received a written request for notice. Each such Holder shall (insofar as the rights of the Agency are concerned) have the right (at such Holder's option), but not the obligation, within ninety (90) days after the receipt of the notice to cure or remedy any such Event of Default and to add the cost thereof to the debt secured by its lien on the Property; provided that in the case of an Event of Default which can only be remedied or cured by such Holder upon obtaining possession, provided that the Holder diligently seeks to obtain possession of the Property, the Holier shall have a reasonable period of time, not to exceed one hundred and twenty (120) days after obtaining possession, to cure the Event of Default. This Section 7.5 does not apply to a failure by the Developer to complete Project improvements for a Phase and obtain a "Certificate of Occupancy" or the equivalent for that Phase by the applicable deadline in the Schedule of Performance; the consequences of such failure are addressed (in part) in Section 7.7 below. This Section 7.5 is for the sole benefit of Holders, and the Agency's failure to comply with same shall not excuse the Developer's performance hereunder. Section 7.6 Assumption of DDA. No Holder of any security interest in the Property or any portion thereof, or its successors, grantees or assigns, shall undertake or continue the construction or completion of any improvements on the Property (beyond the extent necessary to conserve or protect construction already made) without first having expressly assumed the Developer's obligations to the Agency under this Agreement by written agreement reasonably satisfactory to the Agency. Any such Holder properly completing a Subphase shall be entitled, upon written request made to the Agency, to a Certificate of Completion from the Agency with respect to the applicable Subphase. Section 7.7 Agency Reversion Rights. If the Developer fails to satisfy all conditions and requirements for the issuance of a Certificate of Occupancy or its equivalent for Subphases IA, 113, 1C and 1D within 30 months after acquiring the applicable Subphase, or if Developer fails to satisfy all conditions and requirements for the issuance of a Certificate of Occupancy or 11087-0001\741577v7.doc - 23 - its equivalent for Subphases 2A through 2H within 24 months after acquiring the applicable Subphase, then title to the applicable Subphase (including all improvements thereon) shall revert to the Agency as provided in the Grant Deed for the applicable Subphase and Agency shall have all of Developer's rights to possession of the applicable Subphase; however: a. Such reversion right shall be subject and subordinate to the lien and rights of any Holder, but each Holder must agree to forbear from exercising its rights and remedies with respect to defaults by Developer under its loan from such Holder for a period of at least nine (9) months after reversion of title to a Subphase to the Agency; the foregoing will not, however, prohibit the Holder from: (i) sending, recording or publishing notices of default, notices of sale and other notices required by law as prerequisites to a valid foreclosure sale; (ii) proceeding with any or all of its rights or remedies with respect to the Property if, after the reversion, Agency has received written notice from the Holder that Agency has failed to pay property taxes or assessments payable on the Property and arising after the reversion, maintain insurance after the reversion or maintain the Property after the reversion, in each case as required by the loan documents for the loan, and such failure has continued for more than sixty (60) days after such written notice; or (iii) proceeding against guarantors of the loan. b. Upon the revesting in the Agency of title to a Subphase, the Agency shall, pursuant to its responsibilities under state law, use reasonable efforts to resell the Subphase as soon and in such manner as the Agency shall find feasible and consistent with the objectives of the Community Redevelopment Law and the Redevelopment Plan to a qualified and responsible party or parties (as determined by the Agency), who will assume the obligation of making or completing the improvements for the Subphase required by this Agreement, or such other improvements in their stead as shall be satisfactory to the Agency and in accordance with the uses specified for the Project, or any part thereof, in the Redevelopment Plan. Upon such resale of the Project, or any pa-t thereof, the net proceeds thereof shall be applied: (1) First, repayment in full of the outstanding balance of the Holder's loan; (2) next, to reimburse the Agency on its own behalf or on behalf of the City of all costs and expenses incurred by the Agency or City, including salaries of personnel engaged in such action, in connection with the management and resale of the Phase (but less any income derived by the Agency from the sale of the Phase, or any part thereof, in connection with such management); all taxes, assessments, and water and sewer and other utility charges, insurance costs, security costs, and other carrying costs with respect to the Phase or any part thereof; any payments made or necessary to be made to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the agreed improvements or any part thereof on the Phase, or any part thereof, and any amounts otherwise owing to the Agency by the Developer and its successor or transferees. Ios7-000tv4is77v7.doc - 24 - C. Any balance remaining after such reimbursements shall be retained by the Agency as its property. d. The rights established in this Section are to be interpreted in light of the fact that the Agency will convey each Phase to the Developer solely for development and use in accordance with this Agreement. e. If the applicable Subphase(s) are not sold by Agency within eight (8) months after reversion to the Agency, or the proceeds of the sale are not sufficient to pay all sums due the Holder, then the Agency shall have thirty (30) days to purchase the Holder's loan for a sum equal to all principal and accrued interest due thereunder (excluding penalties and excluding interest at a rate in excess of the rate of interest in effect prior to the Developer's default). If Agency does not so purchase the Holder's loan, the Holder may proceed with its rights and remedies under its loan documents, including, without limitation, foreclosure. f. In the event of a default or breach by the Developer of a Holder's loan that is cured by the Agency, or payment of sums by Agency to a Holder in excess of the net proceeds of a sale of the Subphase by the Agency's or sale by Agency of a Subphase after obtaining title by reversion, the Agency shall be entitled to reimbursement from the Developer of all costs and expenses incurred by the Agency in curing the loan default the sum of payments by Agency to such Holder, and, all costs and expenses incurred by the Agency in reselling the Subphase. ARTICLE 8. GENERAL PROVISIONS Section 8.1 Construction The Parties agree that each Party and its counsel have reviewed and revised this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply in the interpretation of this Agreement or any amendments or exhibits hereto. Section 8.2 Police Power. Nothing contained herein shall be deemed to limit, restrict, amend or modify, or to constitute a waiver or release of, any ordinances, notices, orders, rules, regulations or requirements (now or hereafter enacted or adopted and/or as amended from time to time) of the City or the Agency, or their departments, commissions, agencies and boards and the officers thereof, including, without limitation, any redevelopment or general plan or any zoning ordinances, or any of the City's or the Agency's duties, obligations, rights or remedies thereunder or pursuant thereto or the general police powers, rights, privileges and discretion of the City or the Agency in the furtherance of the public health, welfare and safety of the inhabitants thereof; provided, however, that the Agency and the City agree not to take any action to frustrate or hinder the: intent or effect of this Agreement. Section 8.3 Interpretation In this Agreement the neuter gender includes the feminine and masculine, and singular number includes the plural, and the words "person " and "party " include corporation, partnership, firm, trust, or association where the context so requires. Section 8.4 Time of the Essence Time is of the essence of this Agreement and all Parties' obligations hereunder. 11087-0001\741577v7.doc - 25 - Section 8.5 Notices. Demands and Communications Between the Parties Notices, demands and communications between the Agency or the City and the Developer shall be deemed sufficiently given if (i) delivered personally, (ii) dispatched by registered or certified mail, postage prepaid, return receipt requested, or (iii) sent by nationally -recognized reputable overnight delivery service to the principal offices of the City or the Agency and the Developer as set forth below. Such written notices, demands and communications may be sent in the same manner to such other addresses or to such other address as any Party may from time to time designate by mail as provided in this Section, and shall be deemed received upon delivery or refusal of delivery, if delivered personally, within three (3) business days after deposit of same in the United States mail, :if mailed, or one (1) business day after deposit of same with a nationally recognized reputable overnight delivery service if sent by such a delivery service. To the Developer: AGK Group, LLC 35411 Paseo Viento Capistrano Beach, California 92624 Attn: Mr. Kading Required Copy To: Good, Wildman, Hegness & Walley 5000 Campus Drive Newport Beach, California 92660-2181 Attn: Paul Hegness, Esq. To the Agency: Temecula Redevelopment Agency 43200 Business Park Drive Temecula, California 92589-9033 Attn: Executive Director Required Copy To: Richards, Watson & Gershon 333 South Hope Street, 38th Floor Los Angeles, California 90071 Attn: Bruce Galloway, Esq. Section 8.6 Representations and Warranties. Section 8.6.1 Developer's Representations and Warranties. The Developer makes the following representations and warranties as of the date of this Agreement and agrees that such representations and warranties shall survive and continue thereafter but shall not be remade after the date of this Agreement, and further agrees that, until the Closing, upon learning of any fact or condition which would cause any of the warranties and representations in this Section not to be true, the Developer shall promptly give notice of such fact or condition to the Agency. Such representations and warranties shall extend for the team of the Loan Agreement. (a) Status. The Developer is duly organized, validly existing, in good standing under the laws of the state of California, and is qualified to do business and is in good standing in the State of California with full power and authority to perform the obligations contemplated hereby. 11087-0001\741577v7.doc - 26 - (b) No Liti ag tion. There is no litigation, action, suit, or other proceeding pending or threatened against the Developer, or to the Developer's knowledge, against the Property, or the Project which may in any manner whatsoever materially adversely affect the validity, priority, or enforceability of this Agreement or the construction, use, occupancy or operation of the Project by or on behalf of the Developer. (c) Authority. The Developer has complied with all Governmental Requirements concerning its organization, existence and transaction of business with respect to the Project. The Developer has the right and power to own and develop the Project as contemplated in this Agreement and to perform all of its obligations under the Loan Documents. The person(s) executing this Agreement on behalf of Developer have the full legal authority to execute this Agreement on behalf of the Developer and thereby bind Developer to its terms (notwithstanding anything to the contrary, express or implied, in any documents delivered to Agency, including, without limitation, the operating agreement of Developer). (d) Enforceability. The Developer has full right, power and authority to execute and deliver this Agreement, and all documents executed pursuant hereto (ntcluding, without limitation, the Loan Documents), and to perform the undertakings of the Developer contained in such agreements. All agreements executed pursuant hereto constitute valid and binding obligations of the Developer which are legally enforceable in accordance with their terms, subject to the application and effect of all Governmental Requirements including, without limitation, the laws of bankruptcy, creditor's rights exceptions, and equity. (e) No Breach. None of the undertakings of the Developer contained in this Agreement or any agreements executed pursuant hereto (including, without limitation, the Loan Documents) violates any applicable Governmental Requirements, or conflicts with, or constitutes a breach or default under, any agreement by which the Developer or the Project are bound or regulated. (1) Financial Information. All financial information prepared by the Developer and delivered to the Agency by the Developer, including, without limitation, information relating to the Developer and the Project, fairly and accurately represents such financial condition in all material respects as of the date such financial information was prepared. No material adverse change in such financial condition has occurred as of the date of this Agreement from that disclosed in such financial information. (111) Proceedings. To the best of the Developer's knowledge, the Developer is not in violation of any statute, law, regulation or ordinance, or of any order of any court or governmental entity the effect of which would prohibit the Developer from performing its obligations hereunder with respect to the Project. 0) Formation and Organization Documents. The Developer has delivered to the Agency all formation and organizational documents of the 11087-0001\741577v7.doe - 27 - Developer, and all such formation and organizational documents remain in full force and effect and have not been amended or modified since they were delivered to the Agency, except as may be delivered to the Agency from time to time in writing. The Developer shall immediately provide the Agency with copies of any amendments or modifications of its formation or organizational documents. (i) Accuracy. To the best of the Developer's knowledge, all documents, reports, instruments, papers, data, information and forms of evidence delivered to the Agency by the Developer with respect to this Agreement and all agreements executed by the Developer pursuant hereto are accurate and correct in all material respects, and do not contain any material misrepresentation or omission by the Developer. The Agency may rely on such reports, documents, instruments, papers, data, information and forms of evidence without any investigation or inquiry. 0 j Condition and Investigation of Property. Developer will conduct its own clue diligence regarding the Property as provided for in this Agreement, and Developer acknowledges that Developer is purchasing the Property in reliance on Developer's own due diligence and investigation and understands that Agency has made no representations and warranties expressly set forth in this Agreement, and no representations or warranties express or implied, have been made by Agency or by Agency's agents. Developer further acknowledges that the Property shall be accepted by Developer "AS IS, WHERE IS, WITH ALL FAULTS", without representation or warranty and with no right of setoff or reduction in the applicable purchase price. Developer is experienced in the purchase of commercial pieces of real property, and Developer has the ability either itself or with the advice of its agents to evaluate the risks associated with the purchase of the Property and at the time of the closing, Developer shall have had adequate time to properly and completely review and analyze the condition of the Property to the extent it deems necessary or appropriate. Section 8.6.2 Agency's Representations and Warranties. (a) Authority. This Agreement has been duly authorized by the Agency. (b) No Violation of Law or Contracts. The Agency's execution of this Agreement will not violate any Governmental Requirements applicable to Agency or any contracts to which Agency is a party. Section 8.7 Release for Condition of Property. Developer hereby releases Agency, its affiliates, successors and assigns from any an all claims, liabilities, costs, or damages that Developer or any third party may suffer arising from the condition of the Property whether caused by Agency or any predecessor in interest of Agency, or otherwise and whether or not known to Developer. :Developer hereby assumes full responsibility for any injuries, damages, losses or liabilities that may hereafter occur with respect to the Released Matters, whether known 11087-0001\741577y T.doc - 28 - or unknown. With respect to the Released Matters, Developer further acknowledges it has had full advice of legal counsel of Developer's choice and has read and considered the provisions of California Civil Code section 1542, which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH DEBTOR." Developer's Initials: Developer hereby expressly waives and relinquishes any right or benefit which Developer has or may have under California Civil Code section 1542 as it relates to the Released Matters, and in this connection Developer acknowledges and hereby expressly agrees this Agreement shall extend to all unknown, unsuspected and unanticipated claims or damages, as well as those which are now disclosed, with respect to the Released Matters. Section 8.8 Warranty Against Payment of Consideration for Agreement The Developer warrants that it has not paid or given, and will not pay or give, to any third person, any money or other consideration for obtaining this Agreement, other than normal costs of conducting business and costs of professional services such as architects, engineers and attorneys. Section 8.9 Release of Agency and City Officials. No member, official, agent, employee, or attorney of the Agency or the City shall be personally liable to the Developer, or any successor in interest of the Developer, in the event of any default or breach by the Agency or the City or for any amount which may become due to the Developer or its successors, or on any obligations under the terms of this Agreement. The Developer hereby waives and releases any claim it may have perscnally against the members, officials, agents, employees, consultants, or attorneys of the Agency or the City with respect to any default or breach by the Agency or the City or for any amount which may become due to the Developer or its successors, or on any obligations under the terms of this Agreement. The Developer makes such release with full knowledge of Civil Code Section 1542, and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. California Civil Code Section 1542 provides as follows: "A GENERAL :RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." Developer's Initials: Section 8.10 Project Compliance. The Developer agrees that the Project shall be completed in substantial compliance i.e. full compliance except for minor defects and incomplete items which do not, individually or in the aggregate, materially and adversely affect 1]087-0001v41577v7.doc - 29 - the value or use of the Project) with all plans and specifications approved pursuant to this Agreement, including bust not limited to the Scope of Development, and that the Project will comply with all applicable Governmental Requirements and covenants, conditions, restrictions and easements of record. Inspection by the City or the Agency of the Project thereon is for the sole purpose of protecting the Agency and the City and is not to be construed as an acknowledgment, acceptance or representation by the Agency or the City that there has been compliance with any plans approved pursuant to this Agreement, or that the Project will be free of faulty materials or workmanship. Any mortgagee or beneficiary of any encumbrance on the Property shall make such other independent inspections as permitted by this Agreement and as it deems necessary for its own protection, and nothing contained herein shall be construed as requiring the Agency or the City to construct or supervise construction of the Project or any public improvements. Section 8.11 Attorneys' Fees If any Parry brings an action to enforce the terms hereof or declare its rights hereunder, the prevailing Party in any such action shall be entitled to its reasonable attorneys' fees to be paid by the losing Party as fixed by the court. If the Agency or the City, without fault, is made a party to any litigation instituted by or against the Developer, then the Developer shall. defend the Agency and the City against and save the Agency and the City harmless from all costs and expenses including attorney's fees incurred in connection with such litigation. Section 8.12 City as Third Party Beneficiary. The City is deemed to be a third parry beneficiary of all provisions hereof wherein the City is specifically identified as having rights hereunder. Section 8.13 Venue. In the event of any litigation hereunder, all such actions shall be instituted in the Superior Court of the County of Riverside, State of California, or in an appropriate municipal court in the County of Riverside, State of California or an appropriate District Court in the Southern District of California. Section 8.14 Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. Section 8.15 Successors and Assigns. Developer may not assign this Agreement without the consent of Agency, which will not be unreasonably withheld with respect to partial assignments of this Agreement with respect to one or more Subphases to entities at least twenty percent (20%) of whose ownership interests are owned by A.G. Kading and/or trusts for the benefit of his family (provided he is a trustee) and which entities must be controlled by A.G. Kading (provided, however, that if A. G. Kading dies or is incapacitated such that he is no longer in "control" of the Developer, the Developer may replace him with another reputable manager for the Developer who has significant experience in developing Projects similar to the Project and who is otherwise reasonably acceptable to Agency), and provided that neither Developer nor any assignee of Developer is in default under this Agreement and provided, further, that at least five (5) business days prior to the effective date of the applicable assignment, the Developer delivers to Agency both a written assumption of this DDA with respect to the applicable subphase(s) duly executed by the assignee and effective as of the date of the assignments and the organizational documents of the assignee entity (including a good standing certificate). In no 11087-0001\741577v7.doc - 30 - event will any such assilpment be effective unless the assignee entity actually acquires title to the applicable Subphase and in no event shall any assignment release Developer from any of its liabilities or obligations hereunder. Subject to the foregoing (and any other restrictions on transfers set forth in this .Agreement), the provisions hereof shall be binding upon, and shall inure to the benefit of, the Agency and the Developer and their successors and assigns. Section 8.16 No Joint Venture. Nothing contained herein shall be construed to render the Agency in any way or for any purpose a partner, joint venturer, or associated in any relationship with the Developer, nor shall this Agreement be construed to authorize either party to act as agent for the other. Section 8.17 Records. In addition to its rights under Section 4.5 above, the Agency or any representative or designee thereof may at any time during normal business hours, upon reasonable prior notice, examine the books and records of the Developer, or of any officer, employee, agent, contractor, affiliate, related person, assignee or franchisee, to the extent that such books and records relate, directly or indirectly, to the acquisition, development and operation of the Project. The Developer shall keep the originals or true and correct copies, at the Developer's choice, of all such records at its address for notices described in Section 8.5 above, or at another location in Riverside County, California reasonably approved by the Agency. Section 8.18 Waiver The waiver by the Agency or the Developer of any breach by the other party of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition or any subsequent breach of the same or any other term, covenant, or condition herein contained. Either parry's acceptance of any performance by the other party after the due date of such performance shall not be deemed to be a waiver by either party of any preceding breach by the other party of any term, covenant, or condition of this Agreement, regardless of such party's knowledge of such preceding breach at the time of acceptance of such performance. Section 8.19 Force Maieum Extension of Times of Performance. Delay in performance by any party hereunder shall not constitute an Event of Default where the delay is due to war; insurrection; strikes; other labor disputes; lock -outs; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; shortages of transportation or materials; unusually severe weather; acts of civil disobedience; delays affirmatively imposed by any governmental authority or any court of competent jurisdiction provided that the delay is not based on any violation of law or breach of this Agreement by Developer or its permitted assignees or by Developer's (or any such assignee's) failure to comply with the regulations, orders or requirements of such governmental authority or court; or any other causes (other than Developer's or its lender's financial inability) beyond the reasonable control and without the fault of the party claiming an extension of time to perform (collectively, "Force Majeure "). The current condition of the Property, which is subject to inspection by Developer under Section 3.12, shall not constitute, or be the basis for, any Force Majeure Delay (Developer's rights being limited to termination of this Agreement under Section 3.12). An extension of time for any such cause shall only be for the period of the delay, which period shall commence to run from the time of the commencement of the cause, and shall only extend time for performance if written notice by the party claiming 11087-0001\741577v7.doc - 31 - such extension is delivered to the other party within fifteen (15) days after commencement of the cause. Section 8.20 Entire Agreement Waivers and Amendments This Agreement, together with all attachments and exhibits hereto and all documents to be executed and delivered pursuant to this Agreement, constitutes the entire understanding and agreement of the Parties hereto. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the subject matter hereof. Any waiver, amendment, or modification of any provision of this Agreement must be i a writing and signed by both parties. Section 8.21 Execution in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. Section 8.22 Severability Each and every provision of this Agreement is, and shall be construed to be, a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof shall to any extent be held to be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is invalid or unenforceable, shall not be affected hereby, and each term anal provision of this Agreement shall be valid and shall be enforced to the extent permitted by law. IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the day and year first above written. Agency: Developer: TEMECULA REDEVELOPMENT AGENCY, AGK GROUP, LLC, a public body, corporate and politic a California limited liability company By:! Name: Name: Title: Title:- Attest: Approved as to Form: Bruce Galloway for Richards, Watson & Gershon, a professional corporation, Counsel to the Temecula By:_ Name: Title: By:_ Name: Title: 11087-0001\7415770.doc - 32 - Redevelopment Agency 11087-0001\741577v7.doc - 33 - List of Exhibits Exhibit "A" Legal Description of Property Exhibit "B" Scope of Development Exhibit "C" Form of Grant Deed Exhibit "D" Schedule of Performance Exhibit "E" Form of Memorandum of DDA Exhibit "F" Schedule of Purchase Prices Exhibit "G" Form of Certificate of Completion 11087-0001\741577v7.doc EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY AND SUBP14ASES (Attached.) 11087-0001\741577v7.doe A-1 EXHIBIT `B" SCOPE OF DEVELOPMENT NOTE: Within 10 calendar months after the Close of Escrow for Subphases 1A, I and 1 D, the Developer will install all offsite improvements and complete all mass grading (over -excavation and recompaction) for thi; entire Project (Phases 1 and 2, including all subphases), and Agency and Developer will execute a license agreement acceptable to Agency in order to give Developer any necessary access to any subphases not yet owned by Developer (collectively the "Preliminary Site Development Work"). PHASE 1— The Primary Improvements (18.32 Acres) Phase I (Mixed --Income Apartments, including the Units) 8.82 Acres 273 Units 430 parking spaces (88 garage spaces; 347 surface spaces) Phase 1B (Campus) 1.40 Acres East and core educational towers totaling 69,600 SF (57,600 SF for the East Tower (Building 4); plus 12,000 SF (Building 3)) Phase I (Retailj • 2.79 Acres • 14,500 SF of retail space (Building 8) • 82 parking spaces (PIA) Phase 1D (Parking) • 5.31 Acres • 499 parking spaces (P4A) • 115 parking spaces (P5) PHASE 2 — The Secondary Improvements (12.78 Acres) Phase 2A (R&D Multi -tenant Building) 4.30 Acres 16,000 SF (Building 12) 288 park'mg spaces (P4B) Phase 2B (Day Care) 1.79 Acres 10,000 SF (Building 6) 50 parking spaces (P2) 11087-0001\7415770.doc B-1 Phase 2C & 2D (Amphitheater) • 2.61 Acres 1,200 SF (.Building 5) • 128 parking spaces (P1B) • Phase 2E (Retail) 0.91 Acres 12,000 SF (Building 7) • 21 parking, spaces for Service and Employee Parking (P3) • Phase 2F (Retail/Loft Units) 1.38 Acres • 20,000 SF of retail space (Buildings 9/10) • Two-story loft units above retail (12 Units) • 17 garages for lofts 26 parking; spaces (PIC) • Phase 2G (West Education Tower) • .55 Acres 57,600 SF (Building 2) • No Parking Phase 2H (Conference Center) • 1.24 Acres • 23,000 SF (Building 1) No Parking The Phases and buildings shall be located as depicted on the Site Plan that Developer has previously delivered to )kgency. 11087-0001\7415770.doc B-2 EXHIBIT "C" FORM OF GRANT DEED RECORDING REQUESTED BY, AND WHEN RECORDED RETURN TO AND MAIL TAX STATEMENTS TO: California Attn: [Space Above For Recorder's Use Only] Grantor declares that this Grant Deed is exempt from Recording Fees pursuant to California Government Code Sections 6103 and 27383. Documentary Transfer Tax is $ computed on the full value of the property conveyed. GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body corporate and politic ("Grantor"), hereby GRANTS to ("Grantee"), that certain real property located in the City of Temecula, County of Riverside, State of California, more particularly described on Exhibit A attached hereto and incorporated herein by this reference (the "Property"); provided, however, that if Certificates of Occupancy for the improvements on the Property required by that certain Disposition and Development Agreement dated 2004 between Grantee and Grantor are not issued on or before the date that is [SUBPHASES 1A, IB, 1C AND ID: thirty (34)] [SUBPHASES 2A — 2H:twenty-four (24)] calendar months after the date hereof, then the ]Property and all improvements thereon shall automatically revert to Grantor, and in addition, Grantee hereby assigns to Grantor all of its right, title and interest in, under and to any leases affecting the Property (or any existing or future improvements thereon) heretofore on hereafter executed by Grantee that have been approved in writing by Grantor, such assignment to be effective as of the date (if any) on which Grantor acquires title to the Property by virtue of the foregoing reversion. SUBJECT TO, a lien to secure payment of general and special real property taxes and assessments, not delinquent; the lien of supplemental taxes assessed pursuant to Chapter 3.5 commencing with California Revenue and Taxation Code Section 75; and 11087-0001\7415770.doc C-1 FURTHER SUBJECT TO, any and all existing building and use restrictions, easements, licenses, rights -of -way, conditions, covenants, restrictions, reservations, liens, encumbrances, exceptions and other matters of record; and FURTHER SUBJECT TO, all matters apparent from an inspection of the Property or which a current, accurate survey of the Property would disclose (including encroachments, overlaps, boundary line disputes, drains, streams or watercourses). BY ACCEPTANCE HEREOF, Grantee covenants, for itself and its successors and assigns, to refrain from restricting the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property on the basis of race, color, creed, religion, ancestry, sex, marital status, national origin or age of any person, nor shall Grantee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. All deeds, leases or contracts entered into with respect to the Property shall contain or be subject to substantially the following nondiscrimination/nonsegregation clauses: IN DEEDS: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, national origin, sex, marital status, age or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." IN LEASES: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there be no discrimination against or segregation of any person or group of persons, on account of age, race, color, creed, religion, sex, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use or occupancy, tenure or enjoyment of the land herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the land herein leased." IN CONTRACTS: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, age, national origin, sex, marital status or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee himself or herself or any person claiming under or through him or her, I los7-0001\7a1577v7.doc C-2 establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." All covenants contained in this Grant Deed shall run with the land for the benefit of, and shall only be enforceable by, Grantor and its successors and assigns, without regard to whether Grantor is or remains an owner of any land or interest therein to which such covenants relate. In the event of a breach of any covenant contained in this Grant Deed, Grantor shall have the right to exercise any right or remedy provided herein or otherwise available at law or in equity, to enforce the curing of such breach. IN WITNESS WHEREOF, the undersigned has executed this Grant Deed as of the date set forth below. Dated as of: _, 200_. GRANTOR: ATTEST: Approved As To Form: Bruce Galloway, for Richards Watson & Gershon, a professional corporation, Counsel to the Redevelopment Agency of the City of Temecula REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate and politic 11087-0001\741577v7.doc C-3 EXHIBIT A TO GRANT DEED LEGAL DESCRIPTION THE LAND SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF TEMECULA, DESCRIBED AS FOLLOWS: 11087-0001\741577vzdoe C-4 STATE OF CALIFORNIA COUNTY OF On __, 200_, before me, a Notary Public in and for the State of California, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for the State of California (SEAL) STATE OF CALIFORN[A COUNTY OF On _, 200 1 before me, a Notary Public in and for the State of California, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for the State of California (SEAL) 11087-0001\741597v7.doc EXHIBIT "D" SCHEDULE OF PERFORMANCE The Developer agrees to comply with the deadlines with regard to the Project that are set forth below. Close of Escrow for 16 months after date of Phases IA, 1B and 1D Agreement, subject to one conditional 12 month extension Completion of 10 months after close Preliminary Site of Escrow for Development Work for Subphases IA, I and entire Property 1D Issuance of Certificate 30 months after close of Occupancy (or of Escrow for equivalent) for the Subphases IA, 1B 1D Project Improvements for each of Phases I A, 1B and 1D Close of Escrow for Four years and four Subphases 1 C and 2A months after date of through 2H Agreement, subject to the one conditional twelve month extension Issuance of Certificate 24 Months after the of Occupancy (or close of Escrow for the Equivalent) for Project applicable Subphase Improvements for Each of Subphases I and 2A through 211 11087-0001\7415770.doc D-1 EXHIBIT "E" FORM OF MEMORANDUM OF DDA Recording Requested By and when recorded return to: Redevelopment Agency cf the City of Temecula Post Office Box 9033 Temecula, California 92589-9033 Attention: City Clerk Exempt from recording fees pursuant to Government Code Sec. 6103 MEMORANDUM OF DISPOSITION AND DEVELOPMENT AGREEMENT THIS MEMORANDUM OF DISPOSITION AND DEVELOPMENT AGREEMENT (this "Memorandum") is dated as of 2004, and is entered into between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA (also known as the City of Temecula Redevelopment Agency), a public body corporate and politic (the "Agency") and (the "Developer"). Recitals A. Agency and Developer entered into a Disposition and Development Agreement dated , 2003, pursuant to which Agency conveyed to Developer the property more described in Exhibit "A" attached hereto and incorporated herein by reference (the "Property„). B. The Disposition and Development Agreement, as amended, is hereinafter referred to as the "DDA." C. The DDA, contains provisions which specify and restrict the development and use of the Property and impose certain obligations on Developer with respect to the development and use of the Property. D. Agency and Developer desire to execute this Memorandum to provide constructive notice to all third parties of the DDA. NOW, THEREFORE, Agency and Developer mutually agree as follows: 1. DDA. The terms of the DDA are incorporated herein by reference. 11087-0001\741 577v7.doe E-1 2. Assignment. Except as expressly provided in the unrecorded DDA to the contrary, neither the Property nor Developer's rights and obligations under the DDA shall be transferred, assigned or conveyed without Agency's prior written consent, which consent may be granted or withheld in Agency's sole; and absolute discretion. 3. Successors and Assi ns. Subject to Section 2 above, this Memorandum and the DDA shall bind and inure to the benefit of the parties hereto and their respective heirs, successors, and assigns. 4. Governing Law. This Memorandum is governed by California law. 5. Execution in Counterparts. This Memorandum may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the undersigned have executed this Memorandum at Temecula, California, as of the date first written above. Developer: Agency: REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate and politic im 100MM Title: Name: Attest: Secretary APPROVED AS TO FORM: 11087-000 1 \7415 77v7.doc E-2 Assistant Agency Counsel 11os7-0001\741577v7.doe E-3 Exhibit "A" to Memorandum of DDA Legal Description THE LAND SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF TEMECULA, DESCRIBED AS FOLLOWS: (See the attached legal description.) 1 ios7-000iv4is77vzdoc E-4 State of California County of Riverside On _ _, 2004, before me, a Notary Public, personally appeared _ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (seal) State of California County of Riverside On _ _, 2004, before me, , a Notary Public, personally appeared _ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (seal) 11087-0001\741577v7.doc State of California County of Riverside On _ 2004, before me, a Notary Public, personally appeared _ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WiINESS my hand and official seal. Signature (seal) State of California County of Riverside On _ 2004, before me, , a Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITWESS my hand and official seal. Signature (seal) 11087-000 1\741577v7. doc EXHIBIT."F" SCHEDULE OF PURCHASE PRICES Phase Purchase Price IA $1,078,000.00 1B $171,300.00 1C $341,300.00 1D $649,200.00 2A $525,200.00 2B $218,900.00 2C $261,600.00 2D $57,600.00 2E $110,900.00 2F $168,500.00 2G $66,800.00 2H $151,800.00 11087-0001\741577v7.doc F-I EXHIBIT "G" RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Temecula Redevelopment Agency 43200 Business Park Drive Temecula, California 92589-9033 Attn: Executive Director CERTIFICATE OF COMPLETION The Temecula Redevelopment Agency, hereby certifies as follows: Section 1. Subphase(s) required to be constructed in accordance with that certain Disposition Development Agreement (the "Agreement") dated as of 2004, by and between the Temecula Redevelopment Agency (the "Agency") and (the "Developer") has/have been satisfactorily completed in accordance with the provisions of said Agreement. Section 2. This Certificate of Completion shall constitute a conclusive determination of satisfaction of the agreerrients and covenants contained in the Agreement with respect to the obligations of the Developer, and its successors and assigns, to construct and develop Subphase(s) in accordance therewith; except that this Certificate of Completion shall not constitute evidence of compliance with or satisfaction of the Developer's covenant to operate and maintain the Project as provided in the Agreement. Section 3. This Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any holder of a mortgage or any insurer of a mortgage, securing money loaned to finance the Project or any part thereof. Section 4. This Certificate is not a Notice of Completion as referred to in California Civil Code Section 3093. Section 5. Except as stated herein, nothing contained in this instrument shall modify in any way any other provisions of the Agreement or any other provisions of the documents incorporated herein. Section 6. The real property to which this Certificate of Completion pertains is that certain land located in the City of Temecula, County of Riverside, State of California, more particularly described as: Assessor's Parcel Number(s): 11087-0001 V41577v7.doc G-1 IN WITNESS THEREOF the Agency has executed this Certificate of Completion this day of 200_. TEMECULA REDEVELOPMENT AGENCY Executive Director Attest: go 11087-0001\7415770.doc G-2 uec le ua ui:eap dent H. unriscenspn ii4 you 0041 p.c BENT A. CHRISTENSEN 419 Main Strect N PMB 146 • Hunlington Beach • (Ulifomia 92W . (714) 960 - 4107 • Fax (714) 960 - 0941 pecemter 12, 2003 A.G. Kading Managing Partner AGK Group, LLC 35411 Paseo Viento Capistrano Beach, CA 92624 VIA FAX Re. Temecula Education Complex Dear Agee: I have read the Disposition and Development Agreement with the Redevelopment Agency of the City of Temecula in regard to the Temecula Education Complex and request that you sign such agreement on behalf of the AGK Group, LLC 4'17d that you f imish the necessary funds to bind this agreement. Best regards, Sent A. Christensen, Partner 7' 4 m Z m n c r D m v c n z 0 0 Z r m x 00, 0 m m n 3 0 00 N0000 =mmm\ 0 0 0 0 0 0 0 0 m p n m D �L Z o u o v w NyA ^� m<F n0 «o nm'nW pAQ mpA .r -z Z n 'R nK vp '-`� may � 'nnas CD n 8'an�S 'n annm� F x DaA m0 '^ env "n,R D:m.:9� o Z cmi a2 nx RO x on wp rY oPg m + O O J P W N + 0�°N< oSS pu�s➢xyA azCA 4napspF 'na A uwN^A EOn'nZ O ➢im OOSp���nG�Sm0NTAA n��a'm6^ ncz Q�F00 NMIra RM ! p8p4m ^O OpSnm^ 0 � D ^0 n4 p pop CIO A�A5°n0 T WZ OpOO �pi� n aA KEYSER MARSTON ASSOCIATES I N C. ADVISORSIN 1660 HOTEL CIRCLE NORTH, SUITE 716 SAN DIEGO, CALIFORNIA 92108 REAL ESTATE PHONE: 619/718-9500 REDEVELOPMENT FAX: 619/718-9508 AFFORDABLE HOUSING WWW.KEYSERMARSTON.COM ECONOMIC DEVELOPMENT SAN DIEGO MEMORANDUM Gerald M. Trimble Paul C. Marra To: Mr. John Meyer, AICP, Redevelopment Director LOSANGELES Calvin E. Hollis, 11 City of Temecula Kathleen H. Head James A. Rabe Paul C. Anderson From: KEYSI=R MARSTON ASSOCIATES, INC. Gregory D. Soo-Hoo SAN FRANCISCO Date: March 1, 2004 A. Jerry Keyser Timothy C. Kelly Kate Earle Funk Debbie M. Kern Subject: Temecula Education Facility — Estimate of Re -use Robert J. Wetmore Value A. Introduction Keyser Marston Associates, Inc. (KMA) has been requested to review the proposed real property sale transaction between the Temecula Redevelopment Agency (Agency) and AGK Group, LLC (Developer). The proposed transaction is detailed in the Disposition and Development Agreement (DDA) under review as of December 12, 2003. Under the terms of the proposed DDA, the Agency will convey an approximate 31.0-acre site (Site) at Dandy Parkway and Diaz Road to the Developer. The Developer intends to develop and operate an educational facility and mixed -income apartment complex (Project) on the Site. B. Summary of Findings KMA's principal conclusions are summarized as follows: Phase 1A— Campus Facility — Garden Apartments Excluding Phase 1A Total Site (8.82 Acres) (22.28 Acres) (31.10 Acres) Fair Re -use Value ($2,835,000) $2,486,000 ($349,000) Compensation to Agency ($2,722,000) $2,722,000 $0 Fair Market Value at Highest and Best Use N/A N/A $0 CELEBRAJTNG 30 YEARS OF SERVICE TO OUR CLIENTS 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility — Estimate of Re -use Value Page 2 C. Background The Riverside Count�f Board of Supervisors adopted Redevelopment Project No. 1-1988 in July 1988. The Project Area includes approximately 1,635 acres of land within four sub -areas. The Site is located Outside, and directly adjacent to, the Project Area. Diaz Road forms the boundary between the Site and the Project Area. The Agency acquired the Site in April 1992 for the purpose of del/eloping affordable housing. Community Overview The City of Temecula, similar to nearby surrounding cities and communities, represents an overflow phenomenon from growth patterns experienced in the nearby counties of San Diego, Orange, and Los Angeles. Many new residents have moved to Temecula and Murrieta over the past decade due to relatively low housing prices as compared to the surrounding counties. These new residents have generally preferred larger affordable homes typically in trade for a longer commute. In response to the influx of new residents, commercial and industrial growth has occurred as the City of Temecula and nearby communities experience an increase in their labor force and employment base. Proposed Develooment and Surrounding Environs The Agency proposes to convey the Site to the Developer for the establishment of an educational facility and mixed -income apartment complex. The Site is located at the northwest corner of Diaz Road and Dandy Parkway. The Site is currently vacant, unimproved, located in a flood plain adjacent to Murrieta Creek, and has most recently been used for interim recreational uses. The Site abuts the City of Murrieta boundary on its northern side (Cherry Street). The surrounding area is characterized by business park uses and vacant land. Major users of the industrial park consist of Milgard Windows and Scott's Company. The Project will be developed in two phases, consisting of the following: Phase 1 Phase 1A 273 Mixed -Income Apartments Phase 1 B 69,600 SF East and Core Educational Towers Phase 1C 14,500 SF Retail Building Phase 1 D 614 Parking Spaces CELEBR HNG30 YEA16OFSERVICE TO OUR CGEMMS 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director Subject: Temecula Education Facility — Estimate of Re -use Value March 1, 2004 Page 3 Phase 2 Phase 2A 16,000 SF R&D Building Phase 2B 10,000 SF Day Care Center Phase 2C & 2D Amphitheater Phase 2E 12,000 SF Retail Building Phase 2F 12 Lofts over 20,000 SF Retail Building Phase 2G 57,600 SF West Educational Tower Phase 2H 23,000 SF Conference Center (1) The 614 spaces in Phase 1 D are dedicated to the educational and conference center buildings. Each of the other subphases contains its own parking; 512 spaces for Phase 1 and 530 spaces for Phase 2. The proposed site plan envisions a mixed -use, mixed -income development, with two five -story multi -institutional educational buildings at the core. Specifically, the proposed tenant of the first classroom building is California State University, San Marcos. The 273-unit apartment project will include 50 units affordable to households at very -low income levels for a period of 55 years. D. Proposed Transaction Terms This section summarizes the salient aspects of the proposed business terms contained in the proposed DDA. Purchase Price and Agency Assistance • The Agency will sell the Site to the Developer, and the Developer agrees to purchase the Site, in two phases. The Developer will close on and purchase all subphases of Phase 1 concurrently, with the exception of Phase 1 C, and may close on and purchase all or any of the subphases of Phase 2 concurrently with the purchase of Phase 1. The Developer may not purchase any subphase of Phase 2 unless it has purchased Phase 1. • The Developer agrees that it will purchase the Site in an "as -is" condition for the following purchase prices: • Phase 1Afor; 1,078,000; • Phases 1B, 1C, and 1D fora total of$1,161,800; and • Phases 2A through 2H for a total of $1,561,300. CELEBRA77NG 30 YE4Rs oFSERvicE To OuR MEN7s 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility— Estimate of Re -use Value Page 4 • The Agency will make forgivable loans to the Developer totaling $3,800,300 for the purposes of financing the purchase price of Phase 1A ($1,078,000) and a portion of the cost of constructing the low-income housing units ($2,722,300) on Phase 1A. Net Agency Loans to Compensation Developer from Phase Land Price (Forgivable) Developer Phase 1A— Garden Apartments $1,078,000 ($3,800,300) ($2,722,300) Phases 1B, 1C, 1D $1,160,700 $0 $1,160,700 Subtotal, Phase 1 $2,238,700 ($3,800,300) ($1,561,600) Phase 2 $1,561,300 $0 $1,561,300 Total (Rounded) $3,800,000 ($3,800,300) $0 Schedule for Conveyance and Developer Deposits • The Developer will provide a $100,000 deposit (initial deposit) concurrent with execution and delivery of the DDA. • The date of the close of escrow for Phases 1A, 1113, and 1 D is scheduled to be no later than 16 months after execution of the DDA. • If the close of escrow for Phases IC and 2A through 2H has not occurred within 32 months of execution of the DDA, the Developer will deliver to the Agency an additional $100,000 deposit. • The timeframes for the close of escrow maybe extended by one year under the following circumstances: Planning Commission has approved the development plan for the project; the Developer has submitted for Plan Check comprehensive plans for Phases 1A, 1 B, and 1 D; and the Developer increases the amount of the deposit by $100,000. • The Agency may apply the deposits toward expenses incurred by the Agency in connection with the transaction and DDA. CELEBRATING 30 YEARS OFSERVICE TO OUR CLIENTS 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility — Estimate of Re -use Value Page 5 • Upon the close o1escrow for Phases 1 C and ID, 50% of the then-unapplied portion of the deposit held by the Agency will be credited toward the purchase price for Phase 1 C and the other 50% toward the purchase price for Phase 1 D. Upon the close of escrow for Phases 2A through 2H, the then-unapplied portion of the additional deposit held by the Agency will be credited toward the purchase price for the applicable subphase provided that the amount to be applied does not exceed the pro -rated amount of the deposit, allocated based on the respective acreage of each subphase. General Reauiremenls • The Developer agrees to construct the Project in accordance with the Scope of Development, and to bear all costs associated with the Project, except for the portion of the costs of Phase 1A to be financed through the Agency's forgivable loan. • The Developer will complete the preliminary site development work for the entire Site within 10 months after the close of escrow for Phases 1A, 1 B, and 1 D. • Upon the Developer's failure to close any of Phases 2A through 2H, the Agency will pay to Developer a share of the actual costs incurred by the Developer for the preliminary site development worts: for each phase not acquired by the Developer, calculated on a pro rata basis relative to the area of the applicable subphase. • The Developer agrees that for a period of 20 years after completion of the core and classroom buildings, Phases 1 B and 2G, that these buildings will be used solely for higher educational purposes (which may include continuing education programs, accredited trade school programs, and workforce education programs), and for no other purposes without the prior, express Nriften consent of the Agency. However, if after 10 years following the completion of Buildings 2, 3, and 4, if any lease of all or a portion of these buildings is terminated, or the term expires, and the Developer provides to the Agency reasonable evidence that efforts to lease the vacant space for higher education purposes has been unsuccessful, then the Developer may lease the vacant space to a tenant reasonably approved by the Agency. • If the Developer fails to satisfy all the conditions and requirements to obtain a certificate of occupancy or its equivalent for all Phase 1 subphases within 30 months after acquiring the applicable subphase, or for all Phase 2 subphases within 24 months after acquiring the applicable subphase, then the title to the applicable subphase, including all improvements, will revert to the Agency. CELEBRAYYNG30 YEA oFSE vicE 7'O OUR CGEN7S 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility — Estimate of Re -use Value Page 6 • The Developer will not assign this DDA without consent of the Agency, which will not be unreasonably withheld in respect to partial assignments of the DDA with respect to one or more subphases to entities whose ownership interests are at least 20% owned by A.G. Kading and/or trusts for the benefit of his family. Conclusion The Agency will convey the Site to the Developer for a purchase price of $3,800,000. The Agency will provide assistance in the amount of $3,800,000. Therefore, KMA estimates that the effective compensation to the Agency is $0. E. Comparable Sales Approach to Re -use Value Re -use value is defined as the highest price in terms of cash or its equivalent which a property or development right is expected to bring for a specified use in a competitive open market, subject to the covenants, conditions, and restrictions imposed by the DDA. There are two fundamental approaches to establish re -use value. One approach is an analysis based on the: sale of comparable properties or development rights. When comparable transactions exist and when relatively few adjustments are required to adjust the comparables to the subject, this approach can yield the most reliable indicator of value. The Site is zoned Public Institutional, but under the provisions of the Temecula Municipal Code, could incorporate a variety of residential and commercial uses. On this basis, then, KMA reviewed comparable residential and commercial land sales in the City of Temecula and southwestern Riverside County over the past year. As shown in Table 1 of Appendix A, large tract residential land ranged from $0.56 per SF to $7.39 per SF. The median price per SF was $2.38, and the average price was $2.99 per SF. In addition, Table 2 oi: Appendix A outlines comparable commercial land sales over the same period. These land sales ranged from $0.61 to $11.07 per SF. The median price per SF was $2.44 per SF, and they average price was $3.46 per SF. A review of comparable transactions suggests that they are of minimal relevance in establishing fair re -use value for the Site due to the extensive adjustments that would be required. The factors that would require adjustment in establishing comparability include: • The proposed Project will be of a mixed -use variety; • The Site is zoned Public Institutional; CELEBRATING 30 YEERSOFSERVICETO OUR MEWS 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility — Estimate of Re -use Value Page 7 The core buildings within the Project will be subject to a restrictive covenant for educational purposes; The apartment complex will include 50 units restricted to very low-income households for 55 years; and The Site requires extraordinary on- and off -site improvements in preparation for development. Based on the foregoing, the comparable sales approach is not deemed relevant to this analysis. F. Residual Value Approach to Re -use Value The second approach to determining re -use value is an analysis based on the anticipated income characteristics for a specific project. The income approach, also termed the residual value approach, is useful when due to the unique market setting, project characteristics, and specific requirements of the Agency an approach based on comparable transactions is difficult or unfeasible to implement. With this approach, the residual value is established as the amount that a developer can feasibly afford to pay for a property or development right, after taking into account the development costs funded by the developer, the quantity and quality of the income stream from the project, and a market -based return on invested capital. Essentially, the formula for the residual approach is that the amount available for payment for the site is equal to the capitalized value of the income stream less the costs funded by the developer. In this approach the capitalization rate must accommodate both the market value of the development at completion and the profit requirements of the development entity. KMA solved for residual value based on the terms of the DDA, absent any contribution of Agency subsidy. Appendices B and C presents KMA's residual value analysis for the proposed Project. Phase 1A — Garden Apartments Development Costs Table 2 of Appendix B summarizes development costs for the apartment component. KMA reviewed the Developer's cost estimates and adjusted them in comparison to similar projects CELEBRATLNG 30 YEARS OF SERVICE TO OUR CLIEMS 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility — Estimate of Re -use Value Page 8 in Southern California with which we are familiar. Based on this review, KMA finds the cost estimates, as described below, to be reasonable. Total development costs for this component equal $28,859,000, or $126 per SF of GBA, which equates to about $106,000 per dwelling unit. Total development costs consist of the following: Direct construction costs, including site work, shell construction, amenities, FF&E, and contingency. The total direct costs are estimated to be $18,907,000, or $82 per SF GBA. This figure includes an allowance of $3,900,000 for on- and off -site improvements such as raising the Site out of the flood plain, grading and soil compaction, perimeter street and intersection improvements, surface parking, and landscaping. Indirect costs, including architecture and engineering, public permits and fees, legal and accounting, taxes and insurance, developer fee, marketing/lease-up, and contingency. These costs are estimated to be $8,243,000, or 43.6% of direct costs. Financing costs, including loan fees and interest during construction. These costs are estimated to total $1,709,000, or 9.0% of direct costs. Net Operating Income KMA reviewed the Developer's income forecast in relation to similar projects with which KMA is familiar, as well as a review of market rents in the City of Temecula. Based on this review, KMA finds the income estimates, as described below, to be reasonable. Table 3 of Appendix 13 presents an estimate of Net Operating Income (NOI) for the garden apartments. As presented in the table, the revenue projection consists of the following key assumptions: Monthly maximum rents for the units restricted at 50% of Area Median Income (AMI) have been set at $429 for the one -bedroom units and $469 for the two -bedroom units. These rents are based on the AM for Riverside County for 2003, and reflect an allowance for utilities as provided by the Housing Authority of the County of Riverside. The remaining units will be rented at the prevailing market rate, estimated to range from $785 per month for a one bedroom/one bath unit to $1,350 per month for a two bedroom/two bath unit. Based on these assumptions, total rental income amounts to $3,435,000 annually. CELEBRATING 30 YEARS OF SERVICE TO OUR CLIENTS 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility — Estimate of Re -use Value Page 9 • Additional income, inclusive of garage income and other sources, equates to an estimated $195,000 per year. KMA has assumed a vacancy factor of 5.0%. • Total expenses have been estimated at approximately $4,500 per unit per year. These consist of operating expenses, management fee, replacement reserves, and property taxes. Based on these assumptions, NOI for the proposed garden apartments at stabilization is estimated at $2,212,000. Residual Land Value A target return on investment (ROI) of 8.5% has been assumed for the garden apartments. This return is indicative of the level of risk associated with development of rental housing in the current marketplace. Based on this ROI, the warranted private investment for the residential component is estimated at $26,024,000. Therefore, the difference between warranted investment and total development costs of $28,859,000 represents a residual value attributable to the garden apartments of negative $2,835,000, or $10,000 per unit. Campus Facility— Excluding Phase 1A The campus facility portion of the Project includes Phases 1 B, 1 C, and 1 D, as well as Phases 2A through 2H. The residual value analysis for the campus facility is divided into two portions — the core educational buildings proposed to be built by the Developer, and the various ground lease pads proposed for ancillary uses. The following sub -section focuses on the core educational buildings, i.e., the core building (Phase 1 B, Building 3), the east classroom building (Phase 1 B, Building 4), the west classroom building (Phase 2G, Building 2), and the Phase 1 D parking area. The payment of State prevailing wages has been assumed for the construction of the core and classroom buildings, due to the anticipated tenancy by public agencies. Development Costs Table 2 of Appendix 1-1 summarizes development costs for the educational component. Total development costs for the campus facility equal $25,299,000, or $179 per SF of GBA. Total development costs consist of the following: CELEBRAHAIG 30 YEARS OF SERVICE TO OUR CLIENTS 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility — Estimate of Re -use Value Page 10 • Direct construction costs, including site work, parking, landscaping, shell construction, FF&E, tenant improvements, and contingency. The total direct costs are estimated to be $17,826,000, or $126 per SF GBA. • Indirect costs, including architecture and engineering, public permits and fees, legal and accounting, taxes, and insurance, developer fee, marketing/lease-up, and contingency. These costs are estimated to be $5,486,000, or 30.8% of direct costs. Financing costs, including loan fees, interest during construction, and interest during lease - up. These costs are estimated to total $1,987,000, or 11.1% of direct costs. Net Operating Income Table 3 of Appendix presents Ki estimate of NOI for the campus facility. As presented in the table, the revenue projection includes the following key assumptions: • KMA surveyed office rents for the City of Temecula to determine the level of market rent obtainable for the core and classroom buildings. KMA translated the rents to triple net (NNN) rents to be consistent with the rent structure under negotiation between the Developer and California State University San Marcos. Generally, monthly rental rates range from $1.05 to $1.80 per SF NNN. Based on this survey, KMA projects a monthly rent of $1.50 per SF NNN for the large blocks of space proposed on the subject Site. After a 5.0% vacancy allowance is applied, the Effective Gross Income (EGI) for the core and classroom buildings is estimated to be $2,350,000. • KMA conducted a separate survey of retail rents to determine the prevailing market rent for retail space in Temecula. Based on this survey, a monthly rental rate of $1.50 per SF NNN has been assigned to the retail building. After a 5.0% vacancy allowance is applied, the EGI for the retail building is estimated to be $248,000. • KMA has allowed a nominal factor of 5% of EGI to cover unreimbursed expenses for the core, classroom, and retail buildings. Based on these assumptions, NOI for the core, classroom, and retail buildings at stabilization is estimated at $2,476,000. Ground Lease Revenue — Pad Buildings Table 4 of Appendix C itemizes the outlying building pads that are proposed to be ground leased for a variety of uses. KMA surveyed comparable industrial, retail, and office land sales CELER vNG30 YEARSGFSERvicE TD OURCLims 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director Subject: Temecula Education Facility - Estimate of Re -use Value March 1, 2004 Page 11 in Temecula and MUITieta since January 2003 to determine fee simple land values for the proposed uses. These findings are presented in Tables 5, 6, and 7, respectively. Based on this information, KMA has assumed land values for the finished pads ranging from $7.50 to $10 per SF, depending on type of use. KMA considers these values to be appropriate based on the location of the subject Site and the overall mix of uses proposed for the Project. KMA applied an industry standard capitalization rate of 8.0% to determine an annual rent for the building pads. On this basis, then, KMA estimates the total annual ground lease revenue from the building pads to be $286,000 annually. This figure excludes the amphitheater, which is considered to have nominal revenue potential. Residual Land Value Classroom Buildings - A target ROI of 10% has been assumed for the classroom buildings. This return takes intc consideration the uncertainty of this type of development in a pioneering location. Based on this ROI, and the NOI projection of $2,242,000, the warranted private investment for the classroom buildings is estimated at $22,420,000. Retail/Pad Buildings - A target ROI of 11 % has been assumed for the retail building and ground lease pads. This return reflects the level of risk in a challenging commercial market for the subject location. Based on this ROI, and the NOI projection of $522,000, the warranted private investment for the retail building and ground lease pads is estimated at $4,745,000. Income During Leased - Operating income during lease -up has been calculated based on 50% of stabilized income for a period of six months. Based on these factors, the income generated during this timeframe is estimated to be $561,000 for the core and classroom buildings, and $59,000 for the retail building for a total of $620,000. On this basis, then, the difference between the sum of total warranted investment and income during lease -up ($27,785,000) and total development costs ($25,299,000) represents a residual land value attributable to the campus facility of $2,486,000, or $2.56 per SF land. The table below summarizes the residual land values for the entire Site. Estimates of Residual Land Value Phase 1A -Garden Apartments Campus Facility - Excluding Phase 1A ($2,835,000) $2,486,000 Total Residual Land Value ($349,000) Therefore, based on the foregoing analysis, KMA concludes that the fair re -use value of the Site is negative $349,000. CELEBRATING 30 YEARSOFSERVICE TO OUR CLFMS 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility — Estimate of Re -use Value Page 12 G. Fair Market Value at Highest and Best Use Section 33433 of California Redevelopment Law requires that prior to selling or leasing real property, redevelopment agencies estimate the fair market value of the interest to be conveyed at its highest and best (most profitable) use. Typically, the analysis of the fair market value at highest and best use does not consider the specific Agency/Developer transaction or development concept, but rather the most profitable use that is consistent with the Redevelopment Plan or other governing land use regulations. The purpose of the analysis is to estimate the maximum compensation that the Agency could achieve if it were to offer the subject property or development right on the open market. The highest and best use of the Site is the use that generates the highest property value. By definition, the highest and best use is that use which is physically possible, financially feasible, and legally permitted. The City of Temecula General Plan (1993) governs the zoning and land uses for the Site. The subject Site lies within the zoning and land use designation of PI — Public/Institutional. The PI designation is intended to facilitate construction of public, private, and quasi -public uses in appropriate areas of the City, and to ensure that new development of such sites are developed in a manner compatible with surrounding land uses. Typical uses include public schools, hospitals, libraries, civic centers, cultural facilities, churches, and public utility facilities. In determining the highest and best use of the Site, KMA considered the current zoning of the Site, its location, and physical condition. The zoning primarily allows public/institutional uses, with potential for some ancillary development under a conditional use permit (CUP). On this basis, then, KMA finds that the mix of uses proposed for the Project represents the highest and best use of the Site. Absent the proposed transaction, however, development of the Site would not require income -restricted apartments. In other words, the Site could be developed with a mix of public/institutional uses, commercial, and market -rate residential uses. Therefore, KMA reviewed large -tract residential and commercial land sales comparables in southwestern Riverside County. As noted previously, the KMA survey yielded median land values for both uses of approximately $2.40 per SF. If this value were applied to the approximately 31-acre Site, it would represent a value of $3,251,000. Per the Developer, development of the subject Site will require extraordinary on- and off -site improvement costs totaling $4,500,000, or $3.30 per SF. These improvements consist of, but are not limited to, removal from the flood plain, grading and soil compaction, and perimeter streets and intersections. The Developer's itemization of on- and off -site improvements, and associated cost estimates, has been reviewed and corroborated by City planning and engineering staff. CELEBRATING 30 YEARSOFSERHcE TO OuR CLIENTS 04339mm 19545.015.001 To: Mr. John Meyer, AICP, Redevelopment Director March 1, 2004 Subject: Temecula Education Facility — Estimate of Re -use Value Page 13 Inasmuch as the improvement costs required to prepare the Site for development exceed the typical value of similar large -tract commercial properties, KMA concludes that the fair market value of the Site at its highest and best use is $0. H. Limiting Conditions The estimates of re -use value and fair market value at the highest and best use contained in this memorandum assume compliance with the following assumptions: 1. There are no soil or subsoil problems, including toxic or hazardous conditions, on the Site that need to be reemediated in order to develop the Site. 2. The ultimate development will not vary significantly from that assumed in this Re -Use Analysis. 3. The title of the property is good and marketable; no title search has been made, nor have we attempted to determine the ownership of the property. The value estimates are given without regard to any questions of title, boundaries, encumbrances, liens or encroachments. It is assumed that all assessments, if any, are paid. 4. The Site will be in conformance with the applicable zoning and building ordinances. 5. Information provided by such local sources as governmental agencies, financial institutions, realtors, buyers, sellers, and others was considered in light of its source, and checked by secondary means. 6. Neither the local nor national economy will experience a major recession. If an unforeseen change occurs in the economy, the conclusions contained herein may no longer be valid. 7. The Project will adhere to the schedule of performance described in the DDA. 8. Both parties are well informed and well advised and each is acting prudently in what he/she considers his/her own best interest. attachments CELEBRATING 30 YEARS OF SERVICETO OUR CLIEMS 04339mm 19545.015.001 TEMECULA PUBLIC FI NAIi14CI NG AUTHORITY ITEM 1 MINUTES OF A REGULAR MEETING OF THE TEMECULA PUBLIC FINANCING AUTHORITY FEBRUARY 10, 2004 A regular meeting of the City of Temecula Public Financing Authority was called to order at 7:35 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula. ROLL CALL PRESENT: 3 AGENCY MEMBERS: Comerchero, Naggar, Washington ABSENT: 2 AGENCY MEMBER: Roberts, Stone Also present were Executive Director Nelson, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No input. CONSENT CALENDAR Minutes RECOMMENDATION: 1.1 Approve the minutes of November 18, 2004; - Agency Member Washington abstained. 1.2 Approve the minutes of November 25, 2003; 1.3 Approve the minutes of December 16, 2003. 2 Authorizing Investment of Bond Proceeds in the Local Agency Investment Fund (LAIF) RECOMMENDATION: 1.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 04-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING INVESTMENT OF BOND PROCEEDS IN THE LOCAL AGENCY INVESTMENT FUND R:minutes.tpfa\021004 1 3 Use of bond Proceeds to Reimburse Purchase of a Fire Tnink — RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 04-02 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY EXPRESSING OFFICIAL INTENT REGARDING A CAPITAL EXPENDITURE TO BE REIMBURSED FROM PROCEEDS OF TAX-EXEMPT OBLIGATIONS MOTION: Authority Member moved to approve Consent Calendar Items 1-3. The motion was seconded by Authority Member Comerchero and electronic vote reflected approval with the exception of Authority Member Washington abstaining on Item 1.1, and Agency Members Roberts and Stone, who were absent. EXECUTIVE DIRECTOR'S REPORT No comment. BOARD OF DIRECTORS' REPORTS No comments. ADJOURNMENT At 7:38 P.M., the Temecula Public Financing Authority meeting was formally adjourned. ATTEST: Susan W. Jones, CIVIC City Clerk/Agency Secretary [SEAL] Michael S. Naggar, Chairman R: m i n utes.t pfa\021004 ITEM 2 APPROVAL -Wp' CITY ATTORNEY ITY M FINANCE CITY MANAGER TEMECULA PUBLIC FINANCING AUTHORITY AGENDA REPORT TO: Temecula Public Financing Authority FROM: Genie Roberts, Director of FinanceIF DATE: March 16, 2004 SUBJECT: Revised Deposit Agreement — Proposed Roripaugh Ranch Community Facilities District RECOMMENDATION: That the Board of Directors of the Authority adopt the resolution entitled: RESOLUTION NO. TPFA 04- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY APPROVING AMENDED AND RESTATED DEPOSIT/REIMBURSEMENT AGREEMENT — RORIPAUGH RANCH BACKGROUND: Ashby USA, LLC (the "Developer') has requested that the Temecula Public Financing Authority (the "Authority") form a community facilities district (the "CFD") to finance public improvements in the Roripaugh Ranch area of the City of Temecula (the "City"), and in 2001 the Developer, the City, the Authority and Calloway 220, LLC (an entity previously interested in the formation of the CFD), entered into a Deposit/Reimbursement Agreement (the "2001 Agreement") pursuant to which the Developer and Calloway 220, LLC agreed to pay the costs of the City and the Authority in connection with the establishment of the Authority and the formation of and issuance of bonds for the CFD. Since the execution of the 2001 Agreement, Calloway 220, LLC is no longer interested in the formation of the CFD, and the costs to be paid by the Developer have been increased. Bond Counsel has provided an Amended and Restated Deposit/Reimbursement Agreement (the "Amended Agreement") to reflect the changed circumstances and Cite Staff recommend its approval by the City Council and the Board of Directors of the Authority. FISCAL IMPACT: The Developer has agreed to pay the costs of the City and the Authority related to the formation of the CFD from deposits as requested by the City, and if funds are not advanced when requested by the Director of Finance, the City Manager may direct Staff to cease activities to be funded by the Developer under the Amended Agreement. Attachment: Resolution No. TPFA 04- Amended and Restated Deposit/Reimbursement Agreement RESOLUTION NO. TPFA 04-, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECUTA PUBLIC FINANCING AUTHORITY APPROVING AMENDED AND RESTATED DEPOSIT/REIMBURSEMENT AGREEMENT — RORIPAUGH RANCH WHEREAS, in 2001, the City of Temecula (the "City"), the Temecula Public Financing Authority (the "Authority"), Ashby USA, LLC ("Ashby") and Calloway 220, LLC ("Calloway"), entered into a Deposit)Reimbursement Agreement (the "Original Agreement'), pursuant to which Ashby and Calloway deposited funds with the City to ensure payment of the costs of the Authority and the City in forming the Authority and a proposed community facilities district, and otherwise in connection with the issuance of bonds for such community facilities district (the "Initial Costs"); and WHEREAS, since the execution of the Original Agreement by the parties thereto, Calloway no longer owns property in the proposed community facilities district and the Initial Costs have been in excess of the amount previously expected; and WHEREAS, the parties to the Original Agreement now desire to amend and restate the Original Agreement to rnflect the current understanding of the parties thereto with respect to, among other matters, the continued advancement of funds necessary to pay the Initial Costs, and there is on file with the Authority Secretary a form of Amended and Restated Deposit/Reimbursement Agreement (the "Deposit Agreement") which the Board of Directors now desires to approve. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Public Financing Authority as follows: Section 1. Deposit Agreement. The Board of Directors hereby approves the Deposit Agreement, and authorizes the Executive Director to execute the Deposit Agreement, in the form on file with the Secretary, together with such changes as deemed advisable by Counsel to the Authority. Section 2. The Executive Director, Treasurer, Secretary, legal counsel to the Authority and all other officers and agents of the Authority are hereby authorized and directed to take all actions necessary or advisable to implement the Deposit Agreement. PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temecula Public Financing Authority at a regular meeting held on the 16'h day of March, 2004. Michael S. Naggar, Chairperson ATTEST: Susan W. Jones, CIVIC City Clerk / Authority Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan Jones, Secretary of the Temecula Public Financing Authority, HEREBY DO CERTIFY that the foregoing Resolution No. TPFA 04-_ was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 16" day of March, 2004, by the following vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Susan W. Jones, CIVIC, Authority Secretary/City Clerk -2- AMENDED AND RESTATED DEPOSIT/REIMBURSEMENT AGREEMENT Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) THIS AMENDED AND RESTATED DEPOSIT/REIMBURSEMENT AGREEMENT (the "Agreement") is by and among the City of Temecula (the "City"), the Temecula Public Financing Authority (the "Authority") for itself and on behalf of the proposed Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) (the "CFD"), Ashby USA, LLC ("Ashby") and Calloway 220, LLC ("Calloway' and, together with Ashby, the "Developers"). RECITALS: WHEREAS, in 2001, the City, the Authority (for itself and on behalf of the proposed CFD) and the Developers entered into a Deposit/Reimbursement Agreement (the "Original Agreement"), pursuant to which the Developers deposited funds with the City to ensure payment of the costs of the Authority and the City in forming the Authority and the CFD, and otherwise in connection with the issuance of bonds (the "Bonds") for the CFD and the proposed expenditure of the proceeds thereof, which Original Agreement provided that the funds so advanced were to be reimbursed to the Developers from the proceeds of any Bonds issued by the Authority for the CID to the extent provided therein; and WHEREAS, since the parties hereto entered into the Original Agreement, the name of the CID has changed from "Temecula Public Financing Authority Community Facilities District No. 01-1 (Butterfield Stage Road)" to "Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch);' and Calloway no longer owns property within the proposed boundaries of the CID; and WHEREAS, the )[nitial Costs (as defined in the Original Agreement) have been in excess of the amounts expected. at the time of execution of the Original Agreement; and WHEREAS, in light of the foregoing, the parties to the Original Agreement now desire to amend and restate the Original Agreement as provided herein, in order to cause the written agreement among the parties to the Original Agreement to reflect the current understanding of the parties thereto as to the continued advancement of funds necessary to pay the Initial Costs, and the prospective reimbursement of amounts advanced by the Developers with proceeds of the Bonds, if any Bonds are issued by the Authority for the CFD. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth herein, and for other consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree that the operative provisions of the Chiginal Agreement shall be amended and restated as follows: Section 1. The Deposits. In 2001, Ashby provided to the City $113,500 and Calloway provided to the City $18,500 (collectively, the "2001 Deposits"), to be used by the City to pay the costs in conducting .proceedings for the formation of the Authority and the CID, and for the issuance of bonds for the CFD (as more fully described in Section 2(a) below, the "Initial Costs").Subsequently, Ashby has provided to the City additional deposits of $68,000 and $70,000 for such purposes collectively, the "Ashby Deposits"). The City, by its execution hereof, acknowledges receipt by the City of the 2001 Deposits and the Ashby Deposits. The checks representing the 2001 Deposits have been cashed by the City, and the 2001 Deposits and the Ashby Deposits were commingled with other funds of the City for purposes of investment and safekeeping; however, the City at all times has maintained records as to the expenditure of the 2001 Deposits and the Ashby Deposits. Ashby hereby agrees to advance any additional amounts necessary to pay any Initial Costs incurred by the City or the Authority, in excess of the amount of the 2001 Deposits and the Ashby Deposits, promptly upon written demand therefore by the Director of Finance of the City; (the "Additional Deposits" and, collectively with the 2001 Deposits and the Ashby Deposits, the "Deposit""). Notwithstanding any other provision of this Agreement, the City Manager may direct City and Authority staff and consultants to cease all work related to the issuance of the Bonds and/or the formation of the CID until any additional amount so demanded has been received by the City. Section 2. Use of Funds. The Deposits shall be administered as follows: (a) The Director of Finance of the City may draw upon the Deposits from time to time to pay the Initial Costs, including but not limited to: (i) the fees and expenses of any consultants to the City or the Authority employed in connection with the issuance of the Bonds and the proposed expenditure of the proceeds thereof (such as engineering, legal counsel, including the City Attorney, Bond Counsel and financing and special tax consultants); (h) the costs of appraisals, market absorption and feasibility studies and other reports necessary or deemed advisable by City staff or consultants in connection with the Bonds; (iii) costs of publication of notices, preparation and mailing of ballots and other costs related to any election with respect to the CFD, the rate and method of apportionment of the special taxes to be levied therein and any bonded indebtedness thereof; (iv) a reasonable charge for City staff time, as determined by the City Manager in his sole discretion, in analyzing the CID, the Bonds and the expenditure of the proceeds thereof, including a reasonable allocation of City overhead expense related thereto; and (v) any and all other actual costs and expenses incurred by the City or the Authority with respect to the CID or the Bonds after the date of execution of this Agreement. The Developers hereby acknowledge that, at a minimum, the following amounts will or may be charged against the Deposits, whether or not the CFD is formed and the Bonds are issued: (i) $75,000.00 to David Taussig and Associates, Inc., special tax consultant, (ii) at least $30,000.00 to an appraiser, (iii) at least $12,000.00 to Richards, Watson & Gershon, City Attorney and general counsel to the Authority, (iv) $22,000.00 for a market absorption analysis related to the CFD, (v) $65,000.00 to Fieldman, Rolapp & Associates for financial advisory services, (vi) $70,000.00 to Albert A. Webb Associates for engineering services related to the facilities proposed to be financed by the CFD, and (vii) at least $2.5,000.00 to the City for City Staff time in analyzing the -2- CFD, the Bonds and the expenditure of the proceeds thereof, including a reasonable allocation of City overhead expense related thereto, including all other actual costs and expenses incurred by the City. Draws on the Deposits shall first be charged to the 2001 Deposits, and when the 2001 Deposits have been fully expended, then to the Ashby Deposits, and when the 2001 Deposits and the Ashby Deposits have been fully expanded, then to any Additional Deposits. (b) If the Bonds are issued under the Mello -Ross Community Facilities Act of 1982, as amended (the "Act') by the Authority secured by special taxes levied upon the land within the CFD, the Authority shall provide for reimbursement to the Developers, without interest, of all amounts charged against the Deposits, said reimbursement to be made solely from the proceeds of the Bonds and only to the extent otherwise permitted under the Act. On or within ten (10) business days after the date of issuance and delivery of the Bonds, the Director of Finance of the City shall return the then unexpended Deposits to the Developers, without interest, less an amount equal to any costs incurred by the City or the Authority or that the City or the Authority is otherwise committed to pay, which costs would be subject to payment under Section 2(a) above, but have not yet been so paid. (c) If the Bonds are not issued, the Director of Finance of the City shall, within ten (10) business days after adoption of the resolution stating the intent of the Authority to terminate proceedings under the Act with respect to the issuance of the Bonds, return the then unexpended Deposits to the Developers, without interest, less an amount equal to any costs incurred by the City or the Authority or that the City or the Authority is otherwise committed to pay, which costs would be subject to payment under Section 2(a) above but have not yet been so paid. (d) In the event that all or any portion of the Deposits drawn upon in accordance with Section 2(a) are reimbursed with proceeds of Bonds (as described in Section 2(b)), or any portion of any unexpended Deposits are otherwise returned to the Developers (as described in Section 2(b) or 2(c)), the amount so reimbursed or returned shall be applied first against any Additional Deposits advanced by Ashby and against the Ashby Deposits until the amount of any such Additional Deposits and the amount of the Ashby Deposits have been fully returned or reimbursed, as applicable; and then against the 2001 Deposits, 86% to Ashby and 14% to Calloway. Section 3. Reimbursement of Other Developer Costs. Nothing contained herein shall prohibit reimbursement of other costs and expenses of Ashby or any successor in interest thereto with respect to the land in the CFD incurred in connection with the CID from the proceeds of the Bonds, including, but not limited to fees and expenses of legal counsel to Ashby and/or any of its successors in interest and special consultant expenses. Any such reimbursement shall be made (a) solely from the proceeds of the Bonds, (b) only to the extent otherwise permitted under the Act, (c) if the Bond issue already includes full reimbursement of all amounts charged against the Deposits, and (d) only if otherwise provided for, at the reasonable discretion of the Authority, in the proceedings for the issuance of the Bonds. Section 4. A�.reement Not Debt or Liability of City or Authority. It is hereby acknowledged and agreed that this Agreement is not a debt or liability of the City or the Authority, as provided in Section 53314.9(b) of the Act. Neither the City nor the Authority shall in any event be liable hereunder other than to return the unexpended and uncommitted Us portions of the Deposits as provided in Section 2 above and provide an accounting under Section 7 below. Neither the City nor the Authority shall be obligated to advance any of their own funds with respect to the CFD or for any of the other purposes listed in Section 2(a) hereof. No member of the City Council, the Board of Directors of the Authority or officer, employee or agent of the City or the Authority shall to any extent be personally liable hereunder. Section 5. No Obligation to Issue Bonds. The provisions of this Agreement shall in no way obligate the City or the Authority to issue any bonds, or to expend any of their own funds in connection with the CFD. Section 6. Severability. 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 7. Accountin-g. The City Director of Finance shall provide the Developers with a written accounting of moneys expended under this Agreement, within ten (10) business days of receipt by the Direcb)r of Finance of the City of a written request therefor submitted by an authorized officer of a Developer. No more than one accounting will be provided in any calendar month and the cost of providing the accounting shall be charged to the Deposits. Section 8. Multiple Bond Issues. In the event that the Authority determines to issue more than one series of the Bonds (due to the establishment of improvement areas within the CFD or otherwise), or if the Authority determines to establish a second community facilities district which includes Land originally contemplated to be included in the CFD and determines to issue bonds for such. second community facilities district, any portion of the Deposits not reimbursed from the first issue of Bonds shall be reimbursed, without interest, from any such other issue of Bonds of the CFD or of bonds of such second community facilities district; but in any event only to the extent such reimbursement is permitted under the Act. Section 9. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. Section 10. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. -4- Section 11. final Agreement Superceded. This Agreement supercedes in its entirety the Original Agreement. Upon execution of this Agreement by all of the parties hereto, the Original Agreement shall be deemed terminated. IN WITNESS THEREOF, the parties hereto have executed this Agreement as of the day and year written alongside their signature line below. Executed on: March _, 2004 Executed on: March 2004 Executed on: March _, 2004 Executed on: March _, 2004 DEVELOPERS: ASHBY USA, LLC, a limited liability company By: Ashby Development Company, Inc., a California corporation, Managing Member 0 Justin K. Ashby, Vice President By: USA Investment Partners, LLC, a Nevada limited liability company, Member um Joseph D. Milanowski CALLOWAY 220, LLC By: Its: CITY: CITY OF TEMECULA 0 City Manager R911:CO) ;i1ra TEMECULA PUBLIC FINANCING AUTHORITY, for itself and on behalf of the proposed Temecula Public Financing Authority Community Facilities District 03-02 (Roripaugh Ranch) By: Executive Director -5- ITEM 16 CITY ATTORNEY DIRECTOR OF FI CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Ailliam G. Hughes, Director of Public Works/City Engineer DATE: March 16, 2004 SUBJECT: Diaz Road Realignment Project, Project No. PW95-27 Resolution of Necessity — Rancho California Business Park Association (Assessor's Parcel Number 921-020-075) PREPARED BY: Michael Yoshiba, City Attorney's Office Greg Butler, Principal Engineer Marilyn Adarbeh, Property Agent RECOMMENDATION: That the City Council: Hold a public hearing and take testimony from the members of the Rancho California Business Park Association or their representatives if they ask to be heard on issues A, B, C, and D se:t forth below regarding the proposed acquisition of the "Covenants, Conditions, and Restrictions" by condemnation for Street Improvement, Road and Highway purposes in connection with the proposed Diaz Road Realignment Project. Review the evidence stated and referred including any testimony received during the adopt a Resolution of Necessity. to herein and consider all the evidence, public hearing, prior to deciding whether to If the City Council finds, based on its consideration of the evidence contained and referred to in this staff report, the testimony and comments received during the public review and planning process, all other testimony that may be presented, and all other evidence and records pertaining to this matter, that the evidence warrants the necessary findings as to the proposed Resolution of Necessity, then the staff recommends that the City Council, in the exercise of its discretion, and upon taking a separate vote on each proposed resolution: 3. Adopt a Resolution of Necessity and authorize and direct that eminent domain proceedings be filed to acquire the subject encumbrances. RESOLUTION NO. 04- A RESOLUTION OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD 1 RMGENDA REPORTS\2004\031604\PW95-27 Business Park Ern DomainZdoc BACKGROUND: The City of Temecula is proposing to realign Diaz Road at Rancho California Road. The Diaz Road Realignment project, hereinafter called the "Project", proposes to bisect two adjacent City -owned parcels (also identified as Assessor's Parcel # 921-020-075) with a new alignment of Diaz Road. The City has studied the existing Diaz Road configuration at Rancho California Rcad and has determined that the proposed realignment of Diaz Road will reduce traffic congestion in and around the intersection of Diaz Road and Rancho California Road. A true and correct copy of the environmental compliance review is on file with the City Clerk and is incorporated in this report by this reference. The combined total area of the two City -owned parcels is approximately 6.22 acres. The City parcels are identified as Parcel 1 & 2 of Parcel Map No. 19580, City of Temecula, hereinafter called "City Parcels." The City Parcels are located within a planned business park development commonly referred to as the Rancho California Business Park. The developer of the Rancho California Business Park recorded "Covenants, Conditions, and Restrictions", hereinafter called "CC&R's," encumbering properties within the business park. The proposed Project requires the use and development of the City Parcels. Implementation of the Project requires that the City secure relief of the CC&R's that encumber and may prohibit the improvement of the City Parcels. Although the City owns Parcels 1 & 2 in fee simple, attempts to improve the City Parcels with the new alignment of Diaz Road may trigger challenges to the Project by the members of the Rancho California Business Park Association, based upon the City's and the Project's non- conformance with the CC&R's. The possible CC&R's affected by the proposed Project are those relating to the roadway improvement's design and the minimum lot size requirements. The Project proposes to bisect the City Parcels with the newly designed Diaz Road. Upon completion of the Project, the City Parcels will consist of two undeveloped areas each straddling the new alignment of Diaz Road, hereinafter called "City Remainder Parcels." The City Remainder Parcels will be approximately 0.88 acres and 3.60 acres in size. There are no plans to subdivide either of the City Parcels or the City Remainder Parcels. The Rancho California Business Park Association is the non-profit entity that manages the affairs of the Business Park, including Business Park decisions concerning their CC&R's. Members of the Rancho California Business Park Association can individually voice objections based upon CC&R issues. Although it has not been formally determined that the CC&R's apply to the proposed Project, the City sought the Rancho California Business Park Association's approval of the proposed improvements. On May 23rd, 2002, the City submitted an application to the Rancho California Business Park Association for approval of the proposed improvements. In a letter dated June 11, 2002, the Rancho California Business Park Association notified City staff that the City's application was rejected. Informal attempts to secure formal Project approval have been rejected by Mr. Peter Racobs, attorney for Rancho California Business Park Association. At the February 24, 2004 Public Hearing the following issues were identified and responded to: Association Request City Response Install Traffic Signal at West Not warranted or high on the City's signal priorities Business Park Drive and Rancho California Road Allow full turning movements at The spacing between Rancho California Road and Realigned Diaz Road and Business Business Park Drive is too short to allow for the Park Drive easterly double left turns and for a full turning movement intersection at Business Park Drive. The 2 RAAGENDA REPORTS\2004\031604\PW95-27 Business Park Ern Domain2.doc original design did not have a Business Park Drive connection, however, based on the Business Park Associations request, a right in /out connection was provided. Use of the remainder City 0.88 City will not develop the 0.88 acre parcel. If anything, Acres parcel is not large enough to we will entertain selling the property to one or both of develop. the adjacent property owners to combine with their sites. Will the City replace association The City will replace in kind all impacted landscaping monument signs and landscaping and irrigation and monument signs The City has not noticed all 22 The City has properly noticed the Business properties within the Business Park Association who has decision making authority for the Association and the responsibility to notify the individual properties The Association will lose a portion The City is prepared to compensate for the of its operating fees if property is difference in lost fees with a cash present value removed from the association payment or assurance that the remaining parcel will continue to pay the difference The City is prepared to continue negotiating with the Association while continuing with the acquisition process, regardless if the condemnation process is continuing. Following the unsuccessful attempts at informal resolution of the CC&R issues, the City began the eminent domain process. The City Parcels and the specific property interests sought from the members of the Rancho California Business Park Association are described and depicted on Exhibits "A" and "B," attached hereto. A. The Public Interest and Necessity Require the Project The Project is an essential component of the City's General Plan, Circulation Element. It is an integral part of the City's overall plan for addressing the existing substandard level of service at local roadway intersections and on many of the traveled ways that now provide transit across the City. It will assist in relieving congestion on commercial streets contributed to by automobile and truck traffic during peak hours at the existing Diaz Road and Rancho California Road intersection. B. The Project is Planned in the Manner that will be Compatible with the Greatest Public Good and Least Private Injury The studies, plans and other documents cited above also evidence that the Diaz Road Realignment Project is planned and located to provide the best practical solution to address the stated circulation and planning goals of the General Plan. C. The Subject Property Interests Described in the Resolution of Necessity are Necessary for the Project The proposed acquisition of the subject property interests described in the Resolution is necessary for the Project as planned and designed. These interests include the partial acquisition of real property interests, specifically, the covenants, conditions, and restrictions, which encumber and partain to assessor's parcel number 921-020-075. A diagram depicting the subject property interests with reference to the proposed Project is attached as Exhibit "C" to this staff report 3 R:\AGENDA REPORTS\2004\031604\PW95-27 Business Park Ern Domain2.doc D. The Offer Required By Section 7267.2 of the Government Code has been made to the Owner of Record of the Property Sought to be Acquired Pursuant to Government Code Section 7262, et seq., on or about December 11, 2003, the City obtained a fair market value appraisal of the subject property interests, set just compensation in accordance with the appraised fair market value, and extended a written offer letter to the Rancho California Business Park Association, the non-profit entity that manages the affairs of the Business Park. A true and correct copy of the offer letter is on file with the City Clerk and is incorporated in this report by this reference. The Rancho California Business Park Association and the City have engaged in negotiations. To date however, no negotiated purchase has been consummated, and the schedule for the proposed Project requires that the City Council consider the proposed Resolution of Necessity at this time. Adoption of the proposed Resolution of Necessity requires at least a four/fifths (4/5) vote of the City Council. FISCAL IMPACT: Property interests sought from the Rancho California Business Park Association have been valued as follows: CC&R encumbrance value $ 2,000.00 TOTAL Adequate funds are available in the project account, Account no. 210-165-632-5700. ATTACHMENTS: 1. Exhibits A & B 2. Resolution No. 04- 4 RAAGENDA REPORTW0041031604TW95-27 Business Park Ern Domain2.doc RESOLUTION NO. 04- A RESOLUTION OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD THE CITY OF TEMECULA DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS: Section 1. The City of Temecula is a municipal corporation, in the County of Riverside, State of California. Section 2. The real property interests described in Section 3 of this Resolution, namely the "Covenants,, Conditions, and Restrictions" that encumber and which prohibit the improvement of the aforementioned Subject Property Interests with the proposed Project's realignment and improvement of Diaz Road ("Project"), are to be taken for a public use and all uses necessary or convenient thereto, pursuant to the authority conferred upon the City of Temecula to acquire property by eminent domain by California Constitution Article 1, Section 19, California Government Code sections 37350, 37350.5, 37351, 40401, and 40404 and California Code of Civil Procedure section 1230.010, et seq. (Eminent Domain Law), including, but not limited to sections 1240.010, 1240.020, 1240.110, 1240.120, 1240.150, 1240.410, 1240.510, 1240.610, 1240.650, and other provisions of law. Section 3. The real property interest the City seeks to acquire are the "Covenants, Conditions, and Restrictions' that encumber and which prohibit the improvement of the aforementioned Subject Property Interests with the Project as proposed on the property commonly known as Parcel 1 & 2 of Parcel Map No. 19580, City of Temecula, and identified as Assessor's Parcel Number ("APN") 921-020-075 ("Subject Property Interests.) The legal description of the Subject Property Interests are attached as Exhibits "A" to this Resolution and depicted on Exhibits "B" to this Resolution. Said Exhibits are incorporated herein by this reference. Specifically, the legal description to the portion of the fee interest on APN 921-020-075 is shown on Exhibit "A." The Subject Property Interests are required for the construction, realignment, and improvements of Diaz Road, which is a public use. Section 4. The Project is consistent with the City's General Plan, adopted on November 11, 1993. The Project would realign and improve Diaz Road westerly from its existing alignment, beginning at Rancho California Road, and extending until Rancho Way. Specifically, the proposed Project provides the means for more efficient multidirectional vehicular traffic flow at the intersection of Diaz Road and Rancho California Road, and at the intersection of Diaz Road and Rancho Way. These improvements will further the public health and safety by ensuring adequate traffic circulation in this area and, thus, will prevent unacceptable traffic congestion and unsafe conditions. The Project is also necessary for the public health and safety because it will ensure that traffic circulation and the level of service are maintained at the standard set forth in the Circulation Element of the City's General Plan. The Project is also necessary to meet the demands of anticipated increased traffic volumes in the area resulting from recent and proposed development in the vicinity of the Project area. Section 5. The potential environmental impacts of the Project were studied and analyzed as an integral part of the City Council's adoption of a Negative Declaration on November 12, 2002. A Resolution of the City Council of the City of Temecula Certifying the Negative Declaration, and adopting the findings pursuant to the California Environmental Quality Act. 5 RMGENDA REPORTS\2004\031604\PW95-27 Business Park Ern Domain2.doc The City Council also determined that the Project and related actions would not have a significant impact on transportation and circulation in the City. The City Council reviewed and considered the Negative Declaration to be in conformance with the General Plan, and found that the Negative Declaration is an accurate and objective statement that fully complies with CEQA, the State CEQA Guidelines and the City's local CEQA Guidelines. Further, the City Council found that the Negative Declaration reflects the independent judgment of the City Council. Accordingly, the City Council certified the Negative Declaration based on the following findings and conclusions: A. Findings. No significant impacts. B. Conclusions. No significant impacts. All of the environmental documentation prepared in connection with the adoption of a resolution concerning the Negative Declaration, has been reviewed by City staff in connection with the proposed Resolutions of Necessity and on February 24, 2004, pursuant to the criteria of Section 15162 of the CEQA Guidelines and Section 21166 of the Public Resources Code, staff concluded that no substantial changes have occurred in the General Plan and related applications, of which the street improvements proposed by the Project are an integral part, and that the City has not obtained any new information of substantial importance that would require City staff to undertake further environmental analysis. These environmental findings in connection with the General Plan and related applications and the conditions imposed as part of their approval, are the appropriate findings with respect to the proposed acquisition of the Subject Property Interests. Section 6. The public use for which the City seeks to acquire the Subject Property Interests, namely street purposes, is a more necessary public use within the meaning of Code of Civil Procedure section 1240.650 than the uses to which public utility easement holders have appropriated those utility easements, which are located in the Subject Property Interests and are affected by the Project Section 7. The City Council of the City of Temecula hereby finds and determines that: A. The public interest and necessity require the Project; B. The Project is planned and located in the manner that will be most compatible with the greatest public good and least private injury; C. The property described in Exhibits "A" and "B" attached hereto is necessary for the Project; and D. The City made the offer required by section 7267.2 of the Government Code to the own6:rs of record. Section 8. The findings and declarations contained in this Resolution are based upon the record before the City Council on February 24, 2004, including the Agenda Report dated February 24, 2004 and all documents referenced therein, all of which are incorporated by this reference. These documents include the environmental documents referenced above, the City's General Plan, and Development Code. The findings and declarations in this Resolution are also based upon any testimony, records and documents produced at the hearing, all of which are incorporated by this reference. Section 9. The City Council of the City of Temecula hereby authorizes and directs the City Attorney's ofl'ice to take all steps necessary to commence and prosecute legal proceedings in a court of competent jurisdiction to acquire by eminent domain the property described on Exhibits "A" and "B" attached hereto. 6 RMGENDA REPORTS\2004\031604\PW95-27 Business Park Ern Domain2.doc PASSED, APPROVED AND ADOPTED by the City Council of the City of Temecula this 16'h day of March 2004. Michael S. Naggar, 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. 04-_ was duly and regularly adopted by the City Council of the city of Temecula at a regular meeting held on the 161h day of March, 2004, by the following vote: AYES: 0 COUNCILMEMBERS: NOES: 0 COUNCILMEMBERS: ABSENT: 0 COUNCILMEMBERS: Susan W. Jones, CMC City 7 RAAGENDA REPORTS\2004\031604\PW95-27 Business Park Ern Domain2.doc All conditions, covenants and restrictions encumbering Parcel I and 2 of Parcel Map 19580, City of Temecula, Califonria. Said conditions, covenants and restrictions encumbering Parcel I and 2 of Parcel Map 19580 are identified, and incorporated by this herein reference, in the document titled "Declaration for Protective Covenants for Rancho California Business Park, an Industrial/COmmerClal Business Park," as recorded in the Official Records of Riverside County, California, Document No. 237558, record date November 2, 1984, and including any and all amendments to the aforementioned "Declaration for Protective Covenants" thereafter. 11086101301756996.1 Exhibit A ::3a_�:-�'. '_ t-l:�'S. d-eG- ,�::'� +�,-,..""i• x ,..-�.iz..�v - -. �,.> .'-;.=—-r.-..::: S`'7ni.3-L .!35,-cf 1.'a-!s`...-... ':i;ni; f 'X)d IDd I L I / 1 ItBiB/YL i 'B'N'd r/ 6fftl -O� �- dYMl OZ 1Jd ! OYOH VINip"O ONDNYN a 113wd ! ! w Ir J t ►rJ I Iw- i/ Y W2 0" all W a'I H d=C NI I U. LAJ co O r I I I'�r----- 1 I I I i 2 ff I i h a N � EXhibit 6 ITEM 17 APPROVAL CITY ATTORNEY P� DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Ailllam G. Hughes, Director of Public Works/City Engineer DATE: March 16, 2004 SUBJECT: Diaz Road Realignment Project, Project No. PW95-27 Resolution of Necessity — Morter Family Trust Property (Assessor's Parcel Number 921-040-028) PREPARED BY: Michael Yoshiba, City Attorney's Office Greg Butler, Principal Engineer Marilyn Adarbeh, Property Agent RECOMMENDATION: That the City Council: Hold a public hearing and take testimony from the property owners or their representatives if they ask to be heard on issues A, B, C, and D set forth below regarding the proposed acquisition of the Morter Family Trust Property by condemnation for Street Improvement, Road and Highway purposes in connection with the proposed Diaz Road Realignment Project. 2. Review the evidence stated and referred to herein and consider all the evidence, including any testimony received during the public hearing, prior to deciding whether to adopt a Resolution of Necessity. If the City Council finds, based on its consideration of the evidence contained and referred to in this staff report, the testimony and comments received during the public review and planning process, all other testimony that may be presented, and all other evidence and records pertaining to this matter, that the evidence warrants the necessary findings as to the: proposed Resolution of Necessity, then the staff recommends that the City Council, in the exercise of its discretion, and upon taking a separate vote on each proposed resolution: 3. Adopt a Resolution of Necessity and authorize and direct that eminent domain proceedings be filed to acquire the subject property. RESOLUTION NO. 04- A RESOLUTION OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD RAagdrpt\2004\0316\PW95-27 Morter Em Domain.doc BACKGROUND: The City of Temecula is proposing to realign Diaz Road at Rancho California Road. The City has studied the existing Diaz Road configuration at Rancho California Road and has determined that the proposed realignment of Diaz Road will reduce traffic congestion in and around the intersection of Diaz Road and Rancho California Road. A true and correct copy of the environmental compliance review is on file with the City Clerk and is incorporated in this report by this reference. The proposed Diaz Road Realignment project will require the acquisition of a portion of property in fee and a temporary construction easement from real property owned by the Morter Family Trust, also identified as Assessor's Parcel Number 921-040-028, the property occupied by the Western Eagle Foundation. At the February 24, 2004 Public Hearing the following issues were identified and responded to: Property Owner/ Tenant Request City Response Allow full turning movements at The City's proposal is consistent with the General Plan and realigned Diaz Road and their driveway circulation element to limit turning movements on Major Roadways and to install medians. In this case there have been two accidents in two years involving left turns from Diaz Road to private driveway. Also, the merge distance between the exclusive northbound Diaz lane and the Morter Driveway is not adequate to allow left turns into there driveway. The City's appraisal considers and provided compensation for changed driveway travel pattern. Emergency Vehicle access will be cut Our emergency services have indicated that they will not have off a problem with the median, and they support efforts to reduce congestion on the City's major roadways to enhance response times The property owner and tenant want a The City will consider a second driveway if it can be second driveway to the south demonstrated to be safe and meet standards. It may be possible to add a second driveway further south along Diaz through the City's remainder parcel which would provide additional site distance. The City Council Subcommittee offered to extend this option to the property owner for consideration with an exclusive negotiation agreement to sell the City property for a term of three years. This will give the property owner time to investigate expansion plans and determine the feasibility of the second driveway. The bargain store needs direct The City is concerned with the safety of the full turning customer access with full turning movement driveway. A new signal at Rancho Way will help movements improve access to the site. Their driveway is difficult to maneuver The City proposes to widen and improve the existing driveway for large trucks. They want left turns to from an 18 foot wide driveway to a 40 foot wide commercial help accommodate truck movements. driveway including widening and modifying the driveway on their property to better accommodate truck turning movements The property will be landlocked with The property travel patterns will be changed, however access out full turning movement driveway will be made primarily from Winchester Road south along Diaz Road to their right in / right out driveway. Diaz Road can be shifted toward the Diaz Road can not be located further east due to the flood creek taking less property control channel and improvements, and conflict with an existing Rancho California Water District Pumping Station. Also, moving the roadway east will further complicate the horizontal curves and site -distance along Diaz Road. The City is prepared to continue negotiating with the Association while conducting the condemnation process. The portions of the Mortar Family Trust property sought to be acquired are described and depicted on Exhibits "A" and "B", which are attached hereto. RAagdrpt\2004\0316\PW95-27 Morter Em Domain.doc A. The Public Interest and Necessity Require the Project The Project is an essential component of the City's General Plan, Circulation Element. It is an integral part of the City's overall plan for addressing the existing substandard level of service at local roadway intersections and on the traveled ways that now provide transit in this vicinity the City. It will assist in relieving congestion on commercial streets contributed to bit automobile and truck traffic during peak hours at the existing Diaz Road and Rancho California Road intersection. B. The Project is Planned in the Manner that will be Compatible with the Greatest Public Good and Least Private Injury The studies, plars and other documents cited above also evidence that the Diaz Road Realignment Project is planned and located to provide the best practical solution to address the stated circulation and planning goals of the General Plan. C. The Subject Property Interests Described in the Resolution of Necessity are Necessary for the Project The proposed acquisition of the subject property interests described in the Resolution is necessary for the Project as planned and designed. These interests include partial acquisitions in fee simple and a temporary construction easement from the Morter Family Trust. A diagram depicting the subject property interests with reference to the proposed Project is attached as Exhibit "C" to this staff report. D. The Offer Required By Section 7267.2 of the Government Code has been made to the Owner of Record of the Property Sought to be Acquired Pursuant to Government Code Section 7262, et seq., on or about December 11, 2003, the City obtained a fair market value appraisal of the subject property interests, set just compensation in accordance with the appraised fair market value, and extended a written offer letter to Jerry R. Morter and Linda C. Morter of the Morter Family Trust, the owner of record of the larger parcel. A true and correct copy of the offer letter is on file with the City Clerk and is incorporated in this report by this reference. The owner of record and the City have engaged in negotiations. To date however, no negotiated purchase has been consummated, and the schedule for the proposed Project requires that the City Council consider the proposed Resolution of Necessity at this time. Adoption of the proposed Resolution of Necessity requires at least a four/fifths (4/5) vote of the City Council. FISCAL IMPACT: Property interests sought from the Morter Family Trust have been valued as follows: Portion of real property in fee (13,363 SF) $146,908.00 Temporary construction easement (9,360 SF) 7,254.00 Severance damages 7,200.00 TOTAL $161,362.00 Adequate funds are available in the project account, Account no. 210-165-632-5700. ATTACHMENT: 1. Exhibits A, B, C 2. Resolution No. 04-_ 3. (Picture) Western Eagle —Existing Driveway 4. (Picture) Example of Proposed City Constructed Driveway R:\agdrpt\2004\0316\PW95-27 Morter Em Domain.doc RESOLUTION NO. 04- A RESOLUTION OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD THE CITY OF TEMECULA DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS: Section 1. The City of Temecula is a municipal corporation, in the County of Riverside, State of California. Section 2. The real property interests described in Section 3 of this Resolution, a portion of the fee interest and temporary construction easements in connection with the proposed realignment and improvements of Diaz Road ("Project"), are to be taken for a public use and all uses necessary or convenient thereto, pursuant to the authority conferred upon the City of Temecula to acquire property by eminent domain by California Constitution Article 1, Section 19, California Government Code sections 37350, 37350.5, 37351, 40401, and 40404 and California Code of Civil Procedure section 1230.010, et seq. (Eminent Domain Law), including, but not limited to sections 1240.010, 1240.020, 1240.110, 1240.120, 1240.150, 1240.410, 1240.510, 1240.610, 1240.650, and other provisions of law. Section 3. The real property interest the City seeks to acquire is a portion of the fee interest and a temporary construction easement on the property commonly known as 28075 Diaz Road, Temecula, and identified as Assessor's Parcel Number ("APN") 921-040-028 ("Subject Property Interests"). The term of the temporary construction easement is twelve (12) months. The legal description of the Subject Property Interests are attached as Exhibits "A" to this Resolution and depicted on Exhibits "B" to this Resolution. Said Exhibits are incorporated herein by this reference. Specifically, the legal description to the portion of the fee interest on APN 921-040-028 is shown on Exhibit "A." The Subject Property Interests are required for the construction, realignment, and improvements of Diaz Road, which is a public use. Section 4. The Project is consistent with the City's General Plan, adopted on November 11, 1993. The Project would realign and improve Diaz Road westerly from its existing alignment, beginning at Rancho California Road, and extending until Rancho Way. Specifically, the proposed Project provides the means for more efficient multidirectional vehicular traffic flow at the intersection of Diaz Road and Rancho California Road, and at the intersection of Diaz Road and Rancho Way. These improvements will further the public health and safety by ensuring adequate traffic circulation in this area and, thus, will prevent unacceptable traffic congestion and unsafe conditions. The Project is also necessary for the public health and safety because it will ensure that traffic circulation and the level of service are maintained at the standard set forth in the Circulation Element of the City's General Plan. The Project is also necessary to meet the demands of anticipated increased traffic volumes in the area resulting from recent and proposed development in the vicinity of the Project area. Section 5. The potential environmental impacts of the Project were studied and analyzed as an integral part of the City Council's adoption of a Negative Declaration on November 12, 2002. A Resolution of the City Council of the City of Temecula Certifying the Negative Declaration, and adopting the findings pursuant to the California Environmental Quality Act. RAagdrpt\2004\0316\PW95-27 Morter Em Domain.doc The City Council also determined that the Project and related actions would not have a significant impact on transportation and circulation in the City. The City Council reviewed and considered the Negative Declaration to be in conformance with the General Plan, and found that the Negative Declaration is an accurate and objective statement that fully complies with CEQA, the State CEQA Guidelines and the City's local CEQA Guidelines. Further, the City Council found that the Negative Declaration reflects the independent judgment of the City Council. Accordingly, the City Council certified the Negative Declaration based on the following findings and conclusions: A. Findings. No significant impacts. B. Conclusions. No significant impacts. All of the environmental documentation prepared in connection with the adoption of a resolution concerning the Negative Declaration, has been reviewed by City staff in connection with the proposed Resolutions of Necessity and on February 24, 2004, pursuant to the criteria of Section 15162 of the CEQA Guidelines and Section 21166 of the Public Resources Code, staff concluded that no substantial changes have occurred in the General Plan and related applications, of which the street improvements proposed by the Project are an integral part, and that the City has not obtained any new information of substantial importance that would require City staff to undertake further environmental analysis. These environmental findings in connection with the General Plan and related applications and the conditions imposed as part of their approval, are the appropriate findings with respect to the proposed acquisition of the Subject Property Interests. Section 6. The public use for which the City seeks to acquire the Subject Property Interests, namely street purposes, is a more necessary public use within the meaning of Code of Civil Procedure section 1240.650 than the uses to which public utility easement holders have appropriated those utility easements, which are located in the Subject Property Interests and are affected by the Project Section 7. The City Council of the City of Temecula hereby finds and determines that: A. The public interest and necessity require the Project; B. The Project is planned and located in the manner that will be most compatible with the greatest public good and least private injury; C. The property described in Exhibits "A" and "B" attached hereto is necessary for the Project; and D. The City made the offer required by section 7267.2 of the Government Code to the owners of record. Section S. The findings and declarations contained in this Resolution are based upon the record before the City Council on February 24, 2004, including the Agenda Report dated February 24, 2004 and all documents referenced therein, all of which are incorporated by this reference. These documents include the environmental documents referenced above, the City's General Plan, and Development Code. The findings and declarations in this Resolution are also based upon any testimony, records and documents produced at the hearing, all of which are incorporated by this reference. Section 9. The City Council of the City of Temecula hereby authorizes and directs the City Attorney's office to take all steps necessary to commence and prosecute legal proceedings in a court of competent jurisdiction to acquire by eminent domain the property described on Exhibits "A" and "B" attached hereto. 5 RAagdrpt\2004\0316\PW95-27 Morter Em Domandoc PASSED, APPROVED AND ADOPTED by the City Council of the City of Temecula this 16th day of March 2004. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )SS CITY OF TEMECULA ) I, Susan W. JonE:S, CMC, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 04-__ was duly and regularly adopted by the City Council of the city of Temecula at a regular meeting held on the 16th day of March, 2004, by the following vote: AYES: 0 COUNCILMEMBERS: NOES: 0 COUNCILMEMBERS: ABSENT: 0 COUNCILMEMBERS: Susan W. Jones, CMC City Clerk 6 RAagdrpt\2004\0316\PW95-27 Morter Em Domandoc EXHIBIT "A" LEGAL DESCRIPTION FOR RIGHT-OF-WAY DEDICATION DIAZ ROAD BEING A PORTION OF BLOCK 2 OF THE PAUBA LAND AND WATER COMPANY S SUBDIVISION OF THE TEMECULA RANCHO IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. AS SHOWN BY MAP OIV FILE IN BOOK 11. PAGE 507 OF MAPS, RECORDS OF SAN DIEGO COUNTY, CALIFORNIA BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THIS NORTHERLY MOST CORNER OF PARCEL 1 OF PARCEL MAP 1956Q AS SHOWN ON A MAP FILED IN BOOK 154 AT PAGES 92 THROUGH 06, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SAID POINT BEING ON THE WESTERLY RIGHTOFWAY OF DIAZ ROAD; THENCE SOUTH 47.01W WEST,134.57 FEET ALONG THE NORTH LINE OF SAID PARCEL 1 TO THE BEGINNING OF A NOON -TANGENT CURVE, CONCAVE TO THE WEST, HAVING A RADIUS OF $00.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS SOUTH 7601 OW EAST; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32'W61', AN ARC LENGTH OF 448.40 FEET TO A POINT ON SAID WESTERLY RIGHT-OF-WAY OF DIAZ ROAD, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 71 °33.39- EAST; THENCE SOUTH 1E 26'21' EAST, 369.39 FEET ALONG SAID WESTERLY RIGHT-OF-WAY OF DIAZ ROAD TO THE POINT OF BEGINNING. CONTAINING 13,363A33 SQUARE FEET OR 0.307 ACRES MORE OR LESS. THE DESCRIPTION ALSO BEING SHOWN ON THE ATTACHED'EXHIBIT B' AND THEREBY BEING MADE A PART HEREOF. PREPARED UNDER MY SUPERVISION: B OA' I I d2 BRIAN D. O PROFESSIONAL UND SURVEYOR NO.7171 EXPIRES 1231-2003 Page 1 of 1 April 16, 2OD2 BY: R Pisa CMD BY: B. Fox f-C.,Wy DoaaneetsVegar0laz Rom Exhibit A EXHIBIT "A-1" LEGAL DESCRIPTION TEMPORARY CONSTRUCTION EASEMENT DIAZ ROAD BEING A PORTION OF BLOCK 2 OF THE PAUBA LAND AND WATER COMPANY'S SUBDIVISION OF THE TEMECULA RANCHO IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 11, PAGE 507 OF MAPS, RECORDS OF SAN DIEGO COUNTY, CALIFORNIA BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING A'T THE NORTHERLY MOST CORNER OF PARCEL 1 OF PARCEL MAP 19580, AS SHOWN ON A MAP FILED IN BOOK 154 AT PAGES 92 THROUGH 96, .RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SAID POINT BEING ON THE: WESTERLY RIGHT-OF-WAY OF DIAZ ROAD; THENCE SOUTH 47*01.03" WEST, 134.57 FEET ALONG THE NORTH LINE OF SAID PARCEL 1 TO THE BEGINNING OF A NON -TANGENT CURVE, CONCAVE TO THE WEST, HAVING A RADIUS OF 800.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 76019'29" WEST, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE NORTH 76°19'29" WEST, 40.25 FEET ALONG SAID RADIAL LINE TO THE BEGINNING OF A TANGENT CURVE, CONCAVE TO THE WEST, HAVING A RADIUS OF 760 FEET, THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 17020'59", AN ARC LENGTH OF 225.74 FEET. THENCE', ALONG A RADIAL LINE BEARING NORTH 86019'32" EAST, 40.00 FEET TO A POINT ON SAID CURVE HAVING A RADIUS OF 800.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE HAVING A RADIUS OF 800.00 FEET THROUGH A CENTRAL ANGLE OF 17°20' 59", AN ARC, LENGTH OF 242.25' FEET TO THE TRUE POINT OF BEGINNING. CONTAINING 9,359.67 SQUARE FEET OR .215 ACRES MORE OR LESS. THE DESCRIPTION ALSO BEING SHOWN ON THE ATTACHED "EXHIBIT B-1" AND THEREBY BEING MADE A PART HEREOF. PREPARED UNDER MY SUPERVISION: �oQ�OFESS/RONALD J. PARKS RONALD J. PARKS No. 19744 DEPUTY DIRECTOR OF PUBLIC WORKS 'f CIVIL REGISTERED CIVIL ENGINEER NO. 19744 9 OF CA1-A��� EXPIRES 9-30-05 R9CW,PROJ=W W 95W W95.271[eylDesoipiomW[AT-29075Diaz.dw Exhibit A 494 w �j SCALE IN FEET 1 = 200 �OL EXHIBIT "all /APN 921-040-028 PORTION .BLOCK 2 OF PAUBA LAND & WATER CO. SUB. M.B. 11/507 RECORDS OF SAN MOD Cl ` PREPARED FYIR• O1TY OF TEtrECULA 43200 BUSINESS PARK DR. IEMECULA. CA 92590 (909) 694-6411 MARILYN- HAMPTON SITAS DEL SOL OK, CA 92028 'r���'j�im O Q •O•BNLY MOST C11R P OF. PNtM I OF PNM YAP 0 1=0 (PM 154/4Y p6):: / � 1 QN4t1� . Q \1 Ai6l �&L L'wo PREPARED BY: gZ12-31-43 owra aaPoasuL ..:�� �GPSPA 151 South Girard Street • Hemet. Ca 92544 • (909) 652-445 FAX (909) 766-8942 E—MAIL kbcozod.com B flo a ow NE O LINE TABLE EXHIBIT LEGEND N0. DIRECTION INSTANCE �Q ® AREA N BEING DESCRIBED C IBEDINE FEET L1 N 8619'32" E 40.00' OR .215 ACRES. MORE OR LESS L2 S 7619'29' E 40.25' SCALE IN FEET / 1 6 \ 1- = 200' / \ a / APN 921-040-028 PORTION BLOCK 2 OF L1 PAUBA LAND & WATER \ C0. SUB. N.B. 11/507 \ m \ \ AMOM OF SN1 DOD CO. 3 � U N 10'T 9b N 861932•. rl IRVF TARI F N0.1 DELTA RADIUS IENOIN C1 1T20'59" 1866.66m1225.74-1 242.25' C2 IT20'59" 760.00' R•I 004 \� NLY CORNER OF PARCH 1 OF PARCEL 19580 (PM 154/92-96) \ O Qo \c RoAo RECORD OWNER: JERRY R. MORTM AND LINDA C. MORTER Q F s 0 AL 0 F'y CITY OF TEMECULA PARKS z EXHIBIT FOR: PREPARED BY: CITY OF TEMECULA No. 19744 CIVIL TEMPORARY CONSTRUCTION EASEMENT 43200 BUSINESS PARK DR. �l. /q•�o.as \P EME ULA. CA1192590 Al-g 28075 DIAZ ROAD CAUF��p Exhibit B ITEM 18 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: qp�illiam G. Hughes, Director of Public Works/City Engineer DATE: March 16, 2004 SUBJECT: Diaz Road Realignment Project, Project No. PW95-27 Resolution of Necessity — Massie Family Trust Property (Assessor's Parcel Number 921-020-039) PREPARED BY: Michael Yoshiba, City Attorney's Office Greg Butler, Principal Engineer Marilyn Adarbeh, Property Agent RECOMMENDATION: That the City Council: Hold a public hearing and take testimony from the property owners or their representatives if they ask to be heard on issues A, B, C, and D set forth below regarding the proposed acquisition of the Massie Family Trust Property by condemnation for Street Improvement, Road and Highway purposes in connection with the proposed Diaz Road Realignment Project. Review the evidence stated and referred to herein and consider all the evidence, including any testimony received during the public hearing, prior to deciding whether to adopt a Resolution of Necessity. If the City Council finds, based on its consideration of the evidence contained and referred to in this staff report, the testimony and comments received during the public review and planning process, all other testimony that may be presented, and all other evidence and records pertaining to this matter, that the evidence warrants the necessary findings as to the proposed Resolution of Necessity, then the staff recommends that the City Council, in the exercise of its discretion, and upon taking a separate vote on each proposed resolution: Adopt a Resolution of Necessity and authorize and direct that eminent domain proceedings be riled to acquire the subject property. RESOLUTION NO. 04- A RESOLUTION OF THE CITY OF TEMECULA DECLARING CERTAIIJ REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD 1 RA\AGENDA REPORTS\2004\031604\PW95-27 Massie Em Domain.doc BACKGROUND: The City of Temecula is proposing to realign Diaz Road at Rancho California Road. The City has studied the existing Diaz Road configuration at Rancho California Road and has determined that the proposed realignment of Diaz Road will reduce traffic congestion in and around the intersection of Diaz Road and Rancho California Road. A true and correct copy of they environmental compliance review is on file with the City Clerk and is incorporated in this report by this reference. The proposed Diaz Road Realignment project will require the acquisition of a portion of property in fee and a temporary construction easement from real property owned by the Massie Family Trust, also identified as Assessor's Parcel Number 921-020-039, the property is occupied by the Outdoor Channel. A public Hearing was held on February 24, 2004 and this item was continued. On March 9, 2004 the Director of Public Works met with the property owner and we are very close to settling this acquisition. It is our desire to continue with the resolution of necessity in the event our settlement is not finalized in order not to be delayed further. The portions of the Massie Family Trust property sought to be acquired are described and depicted on Exhibits "A" and "B," which are attached hereto. A. The Public Interest and Necessity Require the Project The Project is an essential component of the City's General Plan, Circulation Element. It is an integral part of the City's overall plan for addressing the existing substandard level of service at Ioi;al roadway intersections and on the traveled ways that now provide transit in this vicinity the City. It will assist in relieving congestion on commercial streets contributed to by automobile and truck traffic during peak hours at the existing Diaz Road and Rancho California Road intersection. B. The Project is Planned in the Manner that will be Compatible with the Greatest Public Good and Least Private Injury The studies, plans and other documents cited above also evidence that the Diaz Road Realignment Project is planned and located to provide the best practical solution to address the stated circulation and planning goals of the General Plan. C. The Subject Property Interests Described in the Resolution of Necessity are Necessary for the Project The proposed acquisition of the subject property interests described in the Resolution is necessary for the Project as planned and designed. These interests include partial acquisitions in fee simple and a temporary construction easement from the Massie Family Trust. A diagram depicting the subject property interests with reference to the proposed Project is attached as Exhibit "C" to this staff report. D. The Offer Required By Section 7267.2 of the Government Code has been made to the Owner of Record of the Property Sought to be Acquired Pursuant to Government Code Section 7262, et seq., on or about December 11, 2003, the City obtained a fair market value appraisal of the subject property interests, set just compensation in accordance with the appraised fair market value, and extended a written offer letter to Wilma M. Massie of the Massie Family Trust, the owner of record of the larger parcel. A true and correct copy of the offer letter is on file with the City Clerk and is incorporated in this report by this reference. The owner of record and the City have engaged in negotiations. To date however, no negotiated purchase has been consummated, and the schedule for the proposed Project requires that the City Council consider the proposed Resolution of Necessity at this time. Adoption of the proposed Resolution of N6:cessity requires at least a four/fifths (4/5) vote of the City Council. 2 R:WGENDA REPORTS\2004\031604\PW95-27 Massie Em Domain.doc FISCAL IMPACT: Property interests sought from the Massie Family Trust have been valued as follows: Portion of real property in fee (433 SF) $ 4,764.00 Temporary construction easement (3,172 SF) 2,696.00 Severance damages 0.00 TOTAL $ 7,460.00 Adequate funds are available in the project account, Account no. 210-165-632-5700. ATTACHMENT: 1. Exhibits A, B & C 2. Resolution No. 04- 3 RAAGENDA REP0RTS\2004\031604\PW95-27 Massie Em Domandoc RESOLUTION NO. 04- A RESOLUTION OF THE CITY OF TEMECULA DECLARING CERTA114 REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE REALIGNMENT OF DIAZ ROAD THE CITY OF TEMECULA DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS: Section 1. The City of Temecula is a municipal corporation, in the County of Riverside, State of California. Section 2. Tne real property interests described in Section 3 of this Resolution, a portion of the fee interest and temporary construction easements in connection with the proposed realignment and improvements of Diaz Road ("Project"), are to be taken for a public use and all uses necessary or convenient thereto, pursuant to the authority conferred upon the City of Temecula to acquire property by eminent domain by California Constitution Article 1, Section 19, California Government Code sections 37350, 37350.5, 37351, 40401, and 40404 and California Code of Civil Procedure section 1230.010, et seq. (Eminent Domain Law), including, but not limited to sections 1240.010, 1240.020, 1240.110, 1240.120, 1240.150, 1240.410, 1240.510, 1240.610, 1240.650, and other provisions of law. Section 3. The real property interest the City seeks to acquire is a portion of the fee interest and temporary construction easements on the property commonly known as 43445 Business Park Drive, Temecula, and identified as Assessor's Parcel Number ("APN") 921-020- 039 ("Subject Property Interests"). The term of the temporary construction easement is twelve (12) months. The legal description of the Subject Property Interests are attached as Exhibits "A" to this Resolution and depicted on Exhibits "B" to this Resolution. Said Exhibits are incorporated herein by this referencE. Specifically, the legal description to the portion of the fee interest on APN 921-020-039 is shown on Exhibit "A." The Subject Property Interests are required for the construction, realignment, and improvements of Diaz Road, which is a public use. Section 4. The Project is consistent with the City's General Plan, adopted on November 11, 1993. The Project would realign and improve Diaz Road westerly from its existing alignment, beginning at Rancho California Road, and extending until Rancho Way. Specifically, the proposed Project provides the means for more efficient multidirectional vehicular traffic flow at the intersection of Diaz Road and Rancho California Road, and at the intersection of Diaz Road and Rancho Way. These improvements will further the public health and safety by ensuring adequate traffic circulation in this area and, thus, will prevent unacceptable traffic congestion and unsafe conditions. The Project is also necessary for the public health and safety because it will ensure that traffic circulation and the level of service are maintained at the standard set forth in the Circulation Element of the City's General Plan. The Project is also necessary to meet the demands of anticipated increased traffic volumes in the area resulting from recent and proposed development in the vicinity of the Project area. Section 5. The potential environmental impacts of the Project were studied and analyzed as an integral part of the City Council's adoption of a Negative Declaration on November 12, 2002. P, Resolution of the City Council of the City of Temecula Certifying the Negative Declaration, and adopting the findings pursuant to the California Environmental Quality Act. 4 R:\AGENDA REPORTS\2004\031604\PW95-27 Massie Em Domain.doc The City Council also determined that the Project and related actions would not have a significant impact on transportation and circulation in the City. The City Council reviewed and considered the Negative Declaration to be in conformance with the General Plan, and found that the Negative Declaration is an accurate and objective statement that fully complies with CEQA, the State CEQA Guidelines and the City's local CEQA Guidelines. Further, the City Council found that the Negative Declaration reflects the independent judgment of the City Council. Accordingly, the City Council certified the Negative Declaration based on the following findings and conclusions: A. Findings. No significant impacts. B. Conclusions. No significant impacts. All of the environmental documentation prepared in connection with the adoption of a resolution concerning the Negative Declaration, has been reviewed by City staff in connection with the proposed Resolutions of Necessity and on February 24, 2004, pursuant to the criteria of Section 15162 of the CEQA Guidelines and Section 21166 of the Public Resources Code, staff concluded that no substantial changes have occurred in the General Plan and related applications, of which the street improvements proposed by the Project are an integral part, and that the City has not obtained any new information of substantial importance that would require City staff to undertake further environmental analysis. These environmental findings in connection with the General Plan and related applications and the conditions imposed as part of their approval, are the appropriate findings with respect to the proposed acquisition of the Subject Property Interests. Section 6. The public use for which the City seeks to acquire the Subject Property Interests, namely street purposes, is a more necessary public use within the meaning of Code of Civil Procedure section 1240.650 than the uses to which public utility easement holders have appropriated those utility easements, which are located in the Subject Property Interests and are affected by the Project Section 7. The City Council of the City of Temecula hereby finds and determines that: A. The public interest and necessity require the Project; B. The Project is planned and located in the manner that will be most compatible with the greatest public good and least private injury; C. The property described in Exhibits "A" and "B" attached hereto is necessary for the Project; and D. The City made the offer required by section 7267.2 of the Government Code to the owners of record. Section 8. The findings and declarations contained in this Resolution are based upon the record before the City Council on February 24, 2004, including the Agenda Report dated February 24, 2004 and all documents referenced therein, all of which are incorporated by this reference. These documents include the environmental documents referenced above, the City's General Plan, and Development Code. The findings and declarations in this Resolution are also based upon any testimony, records and documents produced at the hearing, all of which are incorporated by this reference. Section 9. The City Council of the City of Temecula hereby authorizes and directs the City Attorneys s office to take all steps necessary to commence and prosecute legal proceedings in a court of competent jurisdiction to acquire by eminent domain the property described on Exhibits "A," and "B" attached hereto. 5 R:WGENDA REPORTS\2004\031604\PW95-27 Massie Em Domain.doc PASSED, APPROVED AND ADOPTED by the City Council of the City of Temecula this 16" day of March 2004. Michael S. Naggar, 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. 04-_ was duly and regularly adopted by the City Council of the city of Temecula at a regular meeting held on the 16th day of March, 2004, by the following vote: AYES: 0 COUNCILMEMBERS: NOES: 0 COUNCILMEMBERS: ABSENT: 0 COUNCILMEMBERS: Susan W. Jones, CMC, City Clerk 6 R:\AGENDA REPORTS\2004\031604\PW95-27 Massie Em Domain.doc EXHIBIT °A" LEGAL DESCRIPTION FOR RIGHT-OF4VAY DEDICATION THAT PORTION OF PARCEL 1 OF PARCEL MAP 19580-1, AS SHOWN ON A PARCEL MAP ON FILE IN BOOK 125 AT PAGES 1 THROUGH 6 INCLUSIVELY OF PARCEL MAPS IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, STATE OF CAUFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTERLINE INTERSECTION OF RANCHO CALIFORNIA ROAD AND BUSINESS PARK DRIVE AS SHOWN ON SAID MAP, SAID POINT BEING MARKED BY A 1 Y:INCH BRASS DISK STAMPED L.S. 3163, FLUSH, PER S/UD MAP; THENCE NORTH 0605VOT WEST, 67.00 FEET ALONG THE CENTERLINE OF BUSINESS PARK DRIVE TO THE BEGINNING OF A TANGENT CURVE IN THE CENTER OF BUSINESS PARK DRIVE; THENCE SOUTH 83-I)TSY WEST, 39.00 FEET TO THE NORTHERLY CORNER -CUTBACK CORNER AS SHOWN ON PARCEL 1 OF SAID MAP, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE SOUTH 39°'1 T01- WEST, 3324 FEET ALONG SAID CORNER CUT -BACK TO A POINT ON THE NORTHERLY RIGHT- OF- WAY OF RANCHO CALIFORNIA ROAD; THENCE SOUTH 83°11,ny WEST, 8.99 FEET ALONG THE NORTHERLY RIGHT- OF- WAY OF RANCHO CALIFORNIA ROAD; THENCE LEAVING S/UD RIGHT OF WAY NORTH 42-01.33' EAST, 32.75 FEET TO THE BEGINNING OF A CURVE CONCAVE EASTERLY, HAVING A RADIUS OF 9W.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS SOUTH 87.31 W WEST; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03.30'23, AN ARC LENGTH OF 65.08 FEET TO A',POINT ON THE WESTERLY RIGHT OF WAY OF BUSINESS PARK DRIVE, SAID POINT ALSO BEING THE BEGINNING OF A NON -TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 611.00 FEET, A RADhkL LINE THROUGH SAID POINT BEARS NORTH 78*W53- EAST; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRALANGLE OF 5°00'00', AN ARC LENGTH OF 63.32 FEET TO THE TRUE POINT OF BEGINNING; CONTAINING 432.508 SQUARE FEET OR 0.010 ACRES, MORE OR LESS. THE DESCRIPTION ALSO BEING SHOWN ON THE ATTACHED'EXHIBTT Er AND THEREBY BEING MADE A PART HEREOF. PREPARED UNDER MY SUPERVISION: 7 OZ BRIAN D. FOX PROFESSIONAL LAND SURVEYOR NO.7171 EXPIRES 1221 2003 Page 1 of 7 April 19. 2002 BY: R Pica CIM BY: B. Far f-C:Wy DownwmNUegaMancho Cardaniadoe Exhibit A EXHIBIT "A-1" LEGAL DESCRIPTION TEMPORARY CONSTRUCTION EASEMENT BUSINESS PARK DRIVE THAT PORTION OF PARCEL 1 OF PARCEL MAP 19580-1, AS SHOWN ON PARCEL MAP ON FILE IN BOOK 125 AT PAGES 1 THROUGH 6 INCLUSIVELY OF PARCEL MA13S IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS'FOLLOWS: PARCEL A BEGINNING AT THE CENTERLINE INTERSECTION OF RANCHO CALIFORNIA ROAD AND BUSINESS PARK DRIVE AS SHOWN ON SAID MAP, SAID POINT BEING MARKFri BY A I %-INCH BRASS DISK STAMPED L.S. 3163, FLUSH, PER SAID MAP; THENCE NORTH 06056'07" WEST 67.00 FEET ALONG THE CENTERLINE OF BUSINESS PARR: DRIVE TO THE BEGINNING OF A TANGENT CURVE IN THE CENTER OF BUSINESS PARK DRIVE; THENCE SOUTH: 83003'53" WEST, 39.00 FEET TO THE NORTHERLY CORNER - CUTBACK CORNER AS SHOWN ON PARCEL I OF SAID MAP, SAID POINT BEING ON THE WESTERLY RIGHT-OF-WAY OF BUSINESS PARK DRIVE, SAID POINT ALSO BEING THE BEGINNING OF A TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 611.00 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 27°44'58", AN ARC LENGTH OF 295.92 FEET TO THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID RIGHT-OF-WAY SOUTH 54042'54" WEST, 20.00 FEET TO THE BEGINNING OF A CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 588.94 FEET; THENCE NORTi IERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 10°42'40", AN ARC LENGTH 110.10 FEET TO A POINT ON THE SOUTHERLY RIGHT-OF-WAY OF SINGLE OAK DRIVE, SAID POINT ALSO BEING THE BEGINNING OF A NON -TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 533.00 FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00037' 17", AN ARCH LENGTH OF 5.78 FEET TO THE NORTHERLY CORNER - CUT BACK CORNER AS SHOWN ON PARCEL 1 OF SAID MAP; R-.CW9PRO/FCTSTW95PW95.27Ueg& DescriptlauWLAT d36/5BPD.dm Exhibit A THENCE SOUTH[ 89046'27" EAST, 20.07 FEET ALONG SAID CORNER CUT- BACK TO A POENT ON THE WESTERLY RIGHT-OF-WAY OF BUSINESS PARK DRIVE; THENCE SOUTHERLY ALONG THE WESTERLY RIGHT-OF-WAY OF BUSINESS PARK DRIVE THROUGH A CENTRAL ANGLE OF 09018'31", HAVING A RADIUS OF 611.00 FEET, AN ARC LENGTH OF 99.27 FEET TO THE TRUE POINT OF BEGINNING; CONTAINING 1;061.69 SQUARE FEET OR .0244 ACRES MORE OR LESS. PARCEL B BEGINNING AT THE CENTERLINE INTERSECTION OF RANCHO CALIFORNIA ROAD AND BUSINESS PARK DRIVE AS SHOWN ON SAID MAP, SAID POINT BEING MARKED BY A 1 1/2-INCH BRASS DISK STAMPED L.S. 3163, FLUSH, PER SAID MAP; THENCE NORTH 06056'07" WEST 67.00 FEET ALONG THE CENTERLINE OF BUSINESS PARK; DRIVE TO THE BEGINNING OF A TANGENT CURVE IN THE CENTER OF BUSINESS PARK DRIVE; THENCE SOUTH[ 83°03'53" WEST, 39.00 FEET TO THE NORTHERLY CORNER - CUTBACK COR14ER AS SHOWN ON PARCEL 1 OF SAID MAP, SAID POINT BEING ON TBE WESTERLY RIGHT-OF-WAY OF BUSINESS PARK DRIVE, SAID POINT ALSO BEING THE BEGINNING OF A TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 611.00 FEET; THENCE NORTHERLY ALONG SAID CRUVE THROUGH A CENTRAL ANGLE OF 05000'00", AN ARC LENGTH OF 53.32 FEET; TO THE BEGINNING OF A CURVE CONCAVE EASTERLY, HAVING A RADIUS OF 900.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARING SOUTH 87°31'33" WEST; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE 03030'23" AN ARC LENGTH OF 55.08 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH: 42001'33" WEST 32.75 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY OF RANCHO CALIFORNIA ROAD; THENCE SOUTH: 83003'53" WEST, 25.00 FEET ALONG THE NORTHERLY RIGHT-OF-WAY OF RANCHO CALIFORNIA ROAD; THENCE LEAVING SAID RIGHT-OF-WAY, NORTH 06056'07" WEST, 26.92 FEET; THENCE NORTH[ 83003'53" EAST, 50.14 FEET TO A POINT ON SAID CURVE THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE R:CUVR02ECTSTW95%PW95-27%eplDescriptimWLAT_43445BPD.dw Exhibit A OF 00°20'45", AN ARC LENGTH OF 5.44 FEET TO THE TRUE POINT OF BEGINNING; CONTAINING 2,109.98 SQUARE FEET OR .0484 ACRES MORE OR LESS. COMBINED ARIiA FOR PARCEL A AND PARCEL B: 3,171.67 SQUARE FEET. THE DESCRIPTION ALSO BEING SHOWN ON THE ATTACHED "EXHIBIT B-1" AND THEREBY :BEING MADE A PART HEREOF. PREPAREDUNDER MY SUPERVISION: 44�,4�oIgOFESS/p49! RONALD J. PARKS �� RONALD DEPUTY DIRECTOR OF PUBLIC WORKS `_ J. PARKS REGISTERED CIVIL ENGINEER NO. 19744 No. 19744 EXPIRES 9-30-05 CIVIL R`CWWWIEM%PW95WW95-2Td4S. )umpU=%PLAT_43445BPD.dm Exhibit A RANCHO ROE PREPARED FM CITY OF TEdEOLLA 4320D BUSINESS PARK DR. TEMECULA. CA 92590 (909) 694-6411 iY COURT 92591 EXHIBIT "b" a SCALE IN FEET V=100,/ f� A LINE TABLE FLUSH PER P.M. 125/1-6 �y�`oNt1 L s` PREPARED BY: :uuwGPuxTu�trS * r4N * ®si A.�iO�i.�%F.� AC —SURVNFRS /GPS t2-St-03 PLAN151 South Girard Street • Hemet, Co 92544 • (909) 652-4454 711%�FAX (909) 766-8942 E—MAIL kbcozod.com 5/7 d2 F9. �c R\0105900V1AIVLAM-W Ex obit B Q U W O EXHIBIT "B=1" UV SCALE IN FEET 1 " = 100' PAR. "B" -� — -cAUFo RANCHO - RECORD OWNER WILMA M. MASME 31305 CANTERBURY COURT TEMECULA. CA 92591 (909) 695-2483 PREPARED BY: CITY OF TEMECULA 43200 BUSINESS PARK DR. TEMECULA. CA 92590 (909) 694-6411 IINF TARIF r[IRVF TARI F N0. DIRECTION DISTANCE N0. DELTA RADIUS LENGiH L1 S 894627" E 20.0T' Cl OV37'17" 533.00 5.78' L2 S 54'42'54" W 20.00' C2 091831" 611.00' 99.27' L3 S OF56.OT" E 26.92' C3 1V42'40" 588.94' 110.1 L4 N 8503'53" E 50.14' C4 OV20'45" 900.00' 5.44' L5 N 4701'33" E 32.75' C5 0 ' 1100' 53.32' L6 N 83'03'53' E 25.00' C6 0SO9'37" 900.00' 49.64' C7 2 44' " 611.00' 24 60 J. PARKS No.19744 a CIVIL Kr LEGEND PORTION :SQUARE OR ACRES, E.. PARCEL T OR .0244 ACRES. MORE . • LESS T.P.O.B. PARCEL B S56'07"W P.O.B. 1-1/20 BRASS DISC STAMPED I.S. 3163 FLUSH PER P.M. 125/1-6 CITY OF TEMECULA EXHIBIT FOR: TEMPORARY CONSTRUCTION EASEMENT 43445 BUSINESS PARK DRIVE Exhibit 0 ITEM 19 APPROVAL CITY ATTORNEY -wP I DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Shawn Nelson, City Manager DATE: March 113, 2004 SUBJECT: Status IJpdate-SB 87 (Hollingsworth) At the request of all City Council Members PREPARED BY: Aaron Adams, Sr. Management Anal t Jim O'Grady, Assistant City Manage RECOMMENDATION: Provide direction to the City staff regarding SB 87 (Hollingsworth). An oral update will be provided to the City Council at the meeting. BACKGROUND: For more than a year, the City has attempted to work with Senator Hollingsworth to advance legislation that would allow the City of Temecula to control and operate the State Highways in Temecula. Local control would greatly expedite the City's ability to make safety and operational improvements to these roadways. On Saturday, February 28, the City Council held a special meeting to further discuss this issue. Since that time, staff and Councilmember Roberts have worked with the Senator's office to try to advance this legislation. An oral update will be provided to the City Council at this meeting, and staff will seek further direction from the City Council as to further steps. FISCAL IMPACT: None. Y:Wgenda Reports\SB 87 staff report2 - 0312.1.dm REQUESTS TO SPEAK REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date For Subject: -- 1H I wish to speak on Agenda Item No. C) Against Name: 7y City/State/Zip Phone: (-� If you are representing an organization or group, please give the name: PObIiL GVXrme14f The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank_You, ebIiicCdPrmev� Date-? " /-6 y I wish to speak on Agenda Item No. For Against -/-�- �tJ 6�t r. S&j iC 2 �-tw �ck/,� �e�Yl �.•� — 0W{f./+'r✓.42 /�5. 1 v0tm.v/^+i-rL S AA /nge-f- ':�t 1-W -A--5 H1 P5 Name:`' Address: Phone: (--� City/State/Zip '&a 9 Zr 5 z If you are representing an organization or group, please give the name: CP1t4f*rFvi- 416N The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date `' v 0 1 I wish to speak on Agenda Item No. Po b GO W kket+ For Against - Subject: 1 O '-�r Q W O M I' l e P Name: UT `r0 Ra\y-o h / City/State/Zip I -crn e' c, Phone: / If you are representing an organization or group, please give the name: The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. I Date � 1 /� I wish /to speak on Agenda Item No. / For V/ Against Subject:: Name: Address: Phone: ity/State/Zip �VIAu ca If you are representing an organization or group, please give the name: The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date D I wish to speak on Agenda Item No. For Against Subject: Name: Address: Phone: If you are JCity/State/Zip T�1- e r u—' f[ an organization or grTouup,, please \ggiiv/yee t-/h/e�name: 1 Ll� 1. ii.V // l�l�or !i co .. The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECUI A // After completing, please return to the City Clerk. Thank You. -44 Date l 6- o II wish to speak on Agenda Item No. � Z For J Against Subject: Name: Dxll G- _ `C�OS�,�LLAiI c Address: City/State/Zip Phone: ' If you are representing an organization or group, please give the name: 5Gc.) 12 SSTone ►..CJ a 6'- u v The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. Date Subject REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. 3 /6 Z,q For I wish to speak on Agenda Item No. Against_ l(0 �i4�-- Name: Ti 4i V bc� LL wt ►�v\� Address: City/State/Zip am e c J ); , Phone: y0 you are representing an organization or group, please give the name: The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date I wish to speak on Agenda Item No. Subject: Q For Against Name: f c,4't'y- E-. // (' � City/State/Zip tql I)& l-S Phone: If you are representing an organization or group, please give the name: The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date Ap �&q I wish to speak on Agenda Item No. I I For Against Subject Name: / Ke Address: City/State/Zip :ePieC��A CA 117!�11 Phone: If you are representing an organization or group, please give the name: The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date For Subject: I wish to speak on Agenda Item No. ` Against Name: City/State/Zip Phone: If you are representing an organization or group, please give the name: The Mayor or presiding officer will call your name when the matter comes up. Pease go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECULA / After completing, please return to the City Clerk. Thank You. Date 3 (� I wish to speak on Agenda Item No. t c7 For Against Subject: r� p �7 SL' D / Name: r114 l(L �6 � Address: -// City/State/Zip 14 / 25-�F2- Phone: If you are representing an organization or group, please give the name: The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You.. Date 0 I wish to speak on Agenda Item No. f6,{OC For Against Address: � City,/�S�tate/Zip Phone: If you are representing an organization or group, please give the name: The Mayor or presiding officer will call your name when the matter comes up. Please go the public podium and state your name and address for the record.