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081004 CC Agenda
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (909) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title II] AGENDA TEMECULA CITY COUNCIL A REGULAR MEETING CITY COUNCIL CHAMBERS 43200 BUSINESS PARK DRIVE AUGUST 10, 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. Next in Order: Ordinance: No. 2004-08 Resolution: No. 2004-87 CALL TO ORDER: Mayor Mike Naggar Prelude Music: Eve Craig Invocation: Pastor Raisa Slagle of Harvester Church of Temecula Flag Salute: Councilman Roberts ROLL CALL: Comerchero, Roberts, Stone, Washington, Naggar PRESENTATIONS/PROCLAMATIONS Water Availability Presentation by Mr. Brian Brady. General Manager of Rancho Water District 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 r]or to the Council addressing that item. There is a five (5) minute time limit for individual speakers. R:/Agenda/081004 CITY COUNCIL REPORTS Reports by the members of the City Council on matters not on the agenda will be made at this time. A total, not to exceed, ten (10) minutes will be devoted to these reports. CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the City Council request specific items be removed from the Consent Calendar for separate action. 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 July 13, 2004 — continued from the July 27, 2004 meeting; 2.2 Approve the minutes of July 27, 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 June 30, 2004. R:/Agenda/081004 f xeeld,IIT1401_97-1IN W 0 5.1 Award a construction contract for Pechanga Parkway Soundwall Landscape Improvements — Project No. PW99-11 LS — to America West Landscape, Inc. in the amount of $199,595.00 and authorize the Mayor to execute the contract; 5.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $19,959.50 which is equal to 10% of the contract amount. 6 Amendment No. 1 to Professional Services Agreement with Vali Cooper & Associates. Inc. for Inspection Services for various CIP Projects RECOMMENDATION: 6.1 Approve Amendment No. 1 to the agreement with Vali Cooper & Associates, Inc. to provide professional inspection services in an amount not to exceed $121,000.00 and authorize the Mayor to execute the agreement. 7 Completion and Acceptance of the Slurry Seal Project — FY 2003/2004 — Project No. PW04-03 RECOMMENDATION: 7.1 Accept the construction of the Slurry Seal Project — FY 2003-2004 — Project No. PW04-03 as complete; 7.2 Direct the City Clerk to 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; 7.3 Release the Labor and Materials Bond seven months after the filing of the Notice of Completion if no liens have been filed. 8 Joint Funding of Murrieta Creek Flood Control — Environmental Restoration and Recreation Project RECOMMENDATION: 8.1 Approve the Joint Funding Agreement with the Riverside County Flood Control and the City of Murrieta for the Murrieta Creek Flood Control — Environmental Restoration and Recreation Project — and authorize the Mayor to execute the agreement. The estimated commitment from the City of Temecula is approximately $11,000,000 of cash and/or in -kind project contributions and improvements over the next five to eight years. R:/Agenda/081004 Parcel Mat) No. 31639 (located at the northwest corner of North General Kearny Road and Margarita Road) RECOMMENDATION: 9.1 Approve Parcel Map No. 31639 in conformance with the conditions of approval; 9.2 Approve the Subdivision Monument Agreement and accept the Monument Bond as security for the agreement. 10 Approve the Sponsorship Request for the Good Old Days Car Show I:T11019uu 14 ►-_ •► 10.1 Approve funding for The Good Old Days Car Show for actual City support costs which are estimated to be approximately $48,850; 10.2 Approve The Good Old Days Car Show Sponsorship Agreement with Central Coast Productions and authorize the Mayor to execute the agreement. 11 Arts Council of Temecula Valley Special Events Community Grant Agreement RECOMMENDATION: 11.1 Approve a Special Events Community Grant Agreement between the City of Temecula and the Arts Council of Temecula Valley in the amount of $22,000. 12 Procurement of Updated Pentium Computer Workstations RECOMMENDATION: 12.1 Authorize the purchase of 45 Pentium -based Hewlet Packard (HP) computer workstations from HP for the total amount of $50,330.03. 13 Amendment to Animal Friends of the Valley Contract for Animal Control Services RECOMMENDATION: 13.1 Approve a one-year contract extension for Animal Control Services with Animal Friends of the Valley not to exceed $130,000; 13.2 Authorize the City Manager to approve additional service not to exceed 10% of the amount of the agreement. 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:/Agenda/081004 Next in Order: Ordinance: No. CSD 2004-01 Resolution: No. CSD 2004-11 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 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 July 13, 2004 - continued from the July 27, 2004 meeting; 1.2 Approve the minutes of July 27, 2004. 2 Arts Council Community Grant Agreement =91eu19, 411497-U16111 2.1 Approve the Community Grant Agreement between the Temecula Community Services District (TCSD) and the Arts Council of Temecula Valley in the amount of $40,000. R:/Agenda/081004 DIRECTOR OF COMMUNITY SERVICES REPORT GENERAL MANAGER'S REPORT BOARD OF DIRECTORS' REPORTS ADJOURNMENT Next regular meeting: Tuesday, August 24, 2004, 7:00 PM, City Council Chambers, 43200 Business Park Drive, Temecula, California. R:/Agenda/081004 Next in Order: Ordinance: No. RDA 2004-01 Resolution: No. RDA 2004-09 CALL TO ORDER: Chairperson Jeff Comerchero ROLL CALL AGENCY MEMBERS: Naggar, Roberts, Stone, Washington, Comerchero PUBLIC COMMENTS A total of 15 minutes is provided so members of the public may address the Redevelopment Agency on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the Board of Directors on an item 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 July 13, 2004 — continued from the July 27, 2004 meeting; 1.2 Approve the minutes of July 27, 2004. EXECUTIVE DIRECTOR'S REPORT AGENCY MEMBERS'REPORTS ADJOURNMENT Next regular meeting: Tuesday, August 24, 2004, 7:00 PM City Council Chambers, 43200 Business Park Drive, Temecula, California. R:/Agenda/081004 Next in Order: Ordinance: No. TPFA 2004-01 Resolution: No. TPFA 2004-07 CALL TO ORDER: Chairperson Mike Naggar ROLL CALL: AGENCY MEMBERS: Comerchero, Roberts, Stone, Washington, Naggar 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 July 13, 2004. 2 Issuance of Bonds for Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston Ill RECOMMENDATION: 2.1 Adopt a resolution entitled: R:/Agenda/081004 RESOLUTION NO. 04- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS OF THE TEMECULA PUBLIC FINANCING AUTHORITY FOR COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS BOARD MEMBERS' REPORTS ADJOURNMENT R:/Agenda/081004 RECONVENE TEMECULA CITY COUNCIL PUBLIC HEARING Any person may submit written comments to the City Council before a public Hearing or may appear and be heard in support of or in opposition to the Approval of the project(s) at the time of the hearing. If you challenge any of the project(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondence delivered to the City Clerk at, or prior to, the public hearing. 14 Update of the Old Town Specific Plan (SP-5) — PA03-0158 RECOMMENDATION: 14.1 Adopt a resolution entitled: RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A COMPREHENSIVE UPDATE OF THE OLD TOWN SPECIFIC PLAN (PLANNING APPLICATION NO. 03-0158) 14.2 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 04- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING THE ZONING AND HISTORIC PRESERVATION STANDARDS FOR THE OLD TOWN SPECIFIC PLAN (PLANNING APPLICATION NO. 03-0168) 15 Davidson Communities — Product Review (PA03-0725) — Roripaugh Ranch Specific Plan — Planning Area 2 RECOMMENDATION: 15.1 Adopt a resolution entitled: RESOLUTION NO.04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA UPHOLDING THE PLANNING COMMISSION APPROVAL FOR A PRODUCT REVIEW FOR 99 DETACHED SINGLE-FAMILY RESIDENCES WITHIN PLANNING AREA 2 OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUTH OF MURRIETA HOT SPRINGS AND WEST OF THE FUTURE EXTENSION OF BUTTERFIELD STAGE ROAD AND KNOWN AS TRACT MAP NO.29661-2 R:/Agenda/081004 10 16 Second Reading of Ordinance No. 04-07 (Fire Sprinklers) RECOMMENDATION: 16.1 Adopt an ordinance entitled: ORDINANCE NO. 04-07 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA. AMENDING SUBSECTION 15.16.02031 OF CHAPTER 15.16 OF THE TEMECULA MUNICIPAL CODE TO CONDITIONALLY EXEMPT OPEN BARN STRUCTURES FROM THE REQUIREMENT FOR FIRE SPRINKLERS COUNCIL BUSINESS 17 Consideration of Technology Liaison or Ad hoc Subcommittee (requested by Councilman Washington.) RECOMMENDATION: 17.1 Consider the appointment of a Council liaison or Ad Hoc Subcommittee to meet with other entities to encourage coordination and collaboration of technology applications. CITY MANAGER'S REPORT CITY ATTORNEY'S REPORT ADJOURNMENT Next regular City Council Meeting, Tuesday, August 24, 2004, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. R:/Agenda/081004 11 PROCLAMATIONS PRESENTATIONS ITEM 1 ITEM 2 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL JULY 13, 2004 The City Council convened in Closed Session at 6:15 P.M. and in Open Session at 7:00 P.M., on Tuesday, July 13, 2004, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: 4 Councilmembers: Absent: 1 Councilmember: PRELUDE MUSIC Comerchero, Roberts, Stone, and Washington Naggar The prelude music was provided by Mario Cuaresma. INVOCATION The invocation was given by Rabbi Hurwitz of Chabad of Temecula Valley PLEDGE OF ALLEGIANCE The pledge of allegiance was presented by Councilman Washington. PRESENTATION/PROCLAMATIONS None PUBLIC COMMENTS Jon Laskin, representing the Temecula Valley Cultural Arts/Music Education Center, thanked the City Council for their support, and invited the Council and the public to attend the first Temecula Valley International Jazz Festival, scheduled for July 17`h and 181h. Meredith Bryant of Temecula requested the City address the problem of illegal fireworks within the community. On behalf of the Arts Council of Temecula Valley, Charles Araujo presented the City Council with a beautifully framed, Arts in the Country Festival Poster. He further thanked the City for their continued supports of Arts in the community. CITY COUNCIL REPORTS A. With the recent celebration of the Fourth of July, Councilman Roberts thanked Community Services Director Herman Parker for the spectacular fireworks display and the related community events. B. Councilman Washington, expressing his happiness to be back in Temecula, explaining his absence for the past two City Council Meetings, because of his Delta Airline training in RAMinutes\071304 Atlanta for the past five weeks. He thanked all those involved in the Grand Opening of the Children's Museum, and also the Mayor's Ball, both of which he was able to attend on weekends during this period. C. Councilman Stone reported that the Library Sub -committee met and he is happy to report that the plans of the library are in the final stages with the State of California, after which the City will be able to go out to bid on the greatly anticipated new Temecula Library. Discussing his recent election to the Riverside County Board of Supervisors, Councilman Stone reported he plans to formally resign from the Temecula City Council on January 1, 2005, and requested the City Attorney bring forward a staff report listing alternatives for the City Council in filling this position, so that all options may be explored. CONSENT CALENDAR 2 4 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. Minutes RECOMMENDATION: 2.1 Approve the minutes of May 20, 2004 (Budget Workshop) — continued from the meeting of June 22, 2004; (Councilman Roberts abstained) 2.2 Approve the minutes of June 8, 2004; (Councilman Washington abstained) 2.3 Approve the minutes of June 22, 2004. (Councilman Washington abstained) Resolution approving List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 04-79 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A City Treasurer's Report as of May 28, 2004 RECOMMENDATION: 4.1 Receive and file the City Treasurer's Report as of May 28, 2004. R:\Minutes\071304 5 Approval of the Plans and Specifications for the Roripaugh Ranch Fire Station Project No. PW03-01. and Authorization to Solicit Construction Bids RECOMMENDATION: 5.1 Approve the Construction Plans and Specifications and authorize the Department of Public Works to solicit construction bids for the Roripaugh Ranch Fire Station, Project No. PW03-01. 6 Second Amendment — Professional Services Agreement for Design Services — Fire Station Wolf Creek Site, Project No, PW01-11 RECOMMENDATION: 6.1 Approve the Second Amendment to the Professional Services Agreement with STK Architecture, Inc. in an amount not to exceed $102,088.00 to provide re -design services for the Fire Station Wolf Creek Site, Project No. PW01-11, within the planned Wolf Creek Development and authorize the Mayor to execute the amendment. Standard Pacific will fund the cost of the re -design and any increase to construction costs attributable to the new design. This item was continued off calendar. Approve Sponsorship Request for the 2004 Temecula Valley International Jazz Festival RECOMMENDATION: 7.1 Approve the funding request in the amount of $10,000 cash, city -support costs in the amount up to $2,000, and no charge for the use of the Community Recreation Center Amphitheater for the Temecula Valley International Jazz Festival; 7.2 Approve the sponsorship agreement with the Temecula Valley International Jazz Festival and authorize the Mayor to execute the agreement. Authorization of Special Tax Lew in Community Facilities District No. 88-12 (Ynez Corridor RECOMMENDATION: 8.1 Adopt a resolution entitled: RESOLUTION NO 04-80 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 88-12 (YNEZ CORRIDOR) R:\Minutes\071304 9 Professional Services Agreement for Annual Administration of CFDs/AD RECOMMENDATION: 9.1 Approve a one-year professional services agreement for debt service administration for Fiscal Year 2004-2005 for the City's Community Facilities Districts and Assessment District in the amount of $48,000.00. 10 First Amendment — Professional Services Agreement for Design Services — Maintenance Facility Expansion (Field Operations Center), Project No. PW03-06 RECOMMENDATION: 10.1 Approve the Facilities Plan for the City's future Maintenance Facility Expansion (Field Operations Center); 10.2 Approve the First Amendment to the Professional Services Agreement with Richard Brady & Associates, Inc. for an amount not to exceed $541,164.00 to provide design services (schematic design, design development and construction drawings) for the Field Operations Center (Maintenance Facility Expansion), Project No. PW03-06 and authorize the Mayor to execute the amendment; 10.3 Authorize the City Manager to approve Amendments not to exceed the contingency amount of $54,116.40 which is equal to 10% of the amendment amount. 11 Assessment District 03-04 (John Warner Road) Street and Storm Drain Improvement Project — Proiect No. PW02-07 — Contract Change Order — Compensation for Delays RECOMMENDATION: 11.1 Appropriate $135,000 in General Fund Reserves to fund a contract change order (CCO) compensating McLaughlin Engineering and Mining, Inc. for a negotiated settlement to excessive delays to the contract; 11.2 Authorize the City Manager to approve the contract change order with McLaughlin Engineering and Mining, Inc., as compensation for delays experienced during the course of the John Warner Road project. 12 Engineering Plan Check. Map and Legal Description Review, Fiscal Year 2004-2005 — KRW & Associates RECOMMENDATION: 12.1 Approve the agreement for Engineering Plan Check, Map and Legal Description Review for Fiscal Year 2004-2005 with KRW & Associates for an amount not to exceed $50,000.00, and authorize the Mayor to execute the agreement. RAMinutes\071304 13 Winchester Road Widening at Jefferson Intersection, Project No. PW00-27 Acquisition Agreement, APN 909-271-043 14 RECOMMENDATION: 13.1 Approve and authorize the Mayor to execute in substantially the form attached hereto, the Agreement of Purchase and Sale between the City of Temecula and Mike and Lora Elese Bouris, trustees, 70% interest, Gwen N. Bouris, 20% interest and Scott C. and Lynette L. Montgomery, 10% interest, for the acquisition of certain real property in the amount of $81,128.00 plus the associated escrow fees; 13.2 Adopt a resolution entitled: RESOLUTION NO. 04-81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO ACCEPT DEEDS OR GRANTS CONVEYING ANY INTEREST IN, OR EASEMENT UPON, REAL ESTATE AS PERMITTED BY GOVERNMENT CODE SECTION 27281 13.3 Direct the City Clerk to record the document. RECOMMENDATION: 14.1 Accept substitute Subdivision Improvement Agreement and Subdivision Faithful Performance and Labor & Materials Bonds as security for improvements and labor and materials for Tract Map 29133; 14.2 Authorize the release of the existing Faithful Performance and Labor & Materials Bonds for Tract Map 29133; 14.3 Direct the City Clerk to so advise the developer and surety. 15 Tract Mao No. 29798-9. -10 & F. located South of Loma Linda Road. East of Pechanga Parkway, North of Wolf Valley Road, in the Wolf Creek Specific Plan No. 12 EIR RECOMMENDATION: 15.1 Approve Tract Map No. 29798-9, -10 & Fin conformance with the Conditions of Approval; 15.2 Approve Subdivision Improvement Agreement; 15.3 Approve Subdivision Monument Agreement and accept the Faithful Performance Bond, Labor and Material Bond and Monument Bond as security for the agreements. RAMinutes\071304 16 Parcel Mai) No. 30797, Located North of Highway 79 South. East of Avenida De Missiones, and the future Rancho Pueblo Road, known as Rancho Community Church RECOMMENDATION: 16.1 Approve Parcel Map No. 30797 in conformance with the Conditions of Approval; 16.2 Approve Subdivision Improvement Agreement; 16.3 Approve Subdivision Monument Agreement and accept the Faithful Performance Bond, Labor and Material Bond and Monument Bond as security for the agreements. 17 Resolution of Support for Proposition 40 — Clean Water Clean Air Safe Neighborhood Parks. and Coastal Protection Bond Act of 2002 RECOMMENDATION: 17.1 Adopt a resolution entitled: RESOLUTION NO. 04-82 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE APPLICANT TO APPLY FOR GRANT FUNDS FOR THE PER CAPITA GRANT PROGRAM UNDER THE CLEAN WATER, CLEAN AIR, SAFE NEIGHBORHOOD PARKS AND COASTAL PROTECTION BOND ACT OF 2002 18 Fire/EMS Protection Agreement for Fiscal Year 2004-05 RECOMMENDATION: 18.1 Approve the amended Exhibit "A" to the Fire Protection Agreement for Fiscal Year 2004-05. 19 Fiscal Year 2004-05 Economic Development Operating/Marketing Agreements RECOMMENDATION: 19.1 Approve the operating/marketing agreements and authorize the Mayor to execute the agreements with the following organizations: • The Temecula Valley Chamber of Commerce in the amount of $148,000. • The Economic Development Corporation of Southwest Riverside County in the amount of $22,500. RAMinutes\071304 • The Southwest California Economic Alliance two-year contract in the amount of $150,000 allocating $75,000 for FY2004-05 and $75,000 for FY2005-06 (subject to Cities' and County satisfaction). Item No. 19 was removed from the Consent Calendar for separate action. 20 Support of Assembly Bill 2430 (Wiggins) — Commercial Air Carriers RECOMMENDATION: 20.1 Adopt a resolution entitled: RESOLUTION NO. 04-83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING ASSEMBLY BILL 2430 (WIGGINS) WHICH WOULD EXCLUDE TRANSPORTATION BY HOT AIR BALLOON FOR ENTERTAINMENT OR RECREATIONAL PURPOSES FROM THE DEFINITIONS OF "COMMERCIAL AIR OPERATOR," AND "AIRCRAFT" UNDER PUC CODE SECTIONS 5500-5512 21 Prescribed Burning Project Agreement RECOMMENDATION: 21.1 Approve and direct the City Manager to sign the agreement. 22 Agreement for Consulting Services Between the City of Temecula and PELA RECOMMENDATION: 22.1 Approve a contract with PELA for landscape plan check and inspection consulting services in the amount of $100,000.00. 23 First Amendment to Agreement between the City of Temecula and RRM Design Group for Preparation of Design Guidelines RECOMMENDATION: 23.1 Approve a contract amendment with RRM for a one-year extension to June 30, 2005. MOTION: Councilman Stone moved to approve Consent Calendar Item Nos. 1-18 (continuing Item No. 6 off calendar) and Item Nos. 20-23. Councilman Roberts seconded the motion and electronic vote reflected approval with the exception of Mayor Naggar who was absent; Councilman Roberts who abstained with regard to Item No. 2.1 (Minutes of May 20, 2004); and Councilman Washington who abstained with regard to Item No. 2.2 and 2.3 (Minutes of June 8, and June 22, 2004). R:\Minutes\071304 Councilman Roberts expressed his concern that parody should exist between the City of Temecula and the City of Murrieta with respect to the level of funding provided. He noted that Temecula is contributing in the amount of $150,000, while the City of Temecula is only participating at the $75,000 level, and the City of Lake Elsinore at even a lower funding. He suggested that after this two-year commitment, the two cities should participate at an equal funding level. Councilman Washington agreed, stating that especially in view of the improved economic state of the City of Murrieta, and a greater population than the City of Temecula, each City should take an active and fair -share role in the economic development of this region. MOTION: Councilman Washington moved to approve staff recommendation, with the stipulation that future consideration of funding of Economic Development be based on a "fair -share" basis. Councilman Stone seconded the motion and electronic vote reflected approval with the exception of Mayor Nagger who was absent. At 7:26 P.M., the City Council convened as the Temecula Community Services District, the Temecula Redevelopment Agency, and the Temecula Public Financing Authority. At 7:30 P.M., the City Council resumed with regular business. PUBLIC HEARINGS 24 Amendment to the TMC Chapter 15 (Fire Sprinkler Exemption) RECOMMENDATION: 24.1 Continue the public hearing to the meeting of July 27, 2004. MOTION: Councilman Stone moved to open the public hearing and continue it to the meeting of July 27, 2004. The motion was seconded by Councilman Roberts and electronic vote reflected approval with the exception of Mayor Nagger who was absent. CITY MANAGER'S REPORT No comments. CITY ATTORNEY'S REPORT With regard to Closed Session, City Attorney Thorson advised that there were no actions to report from Closed Session. R:\Minutes\071304 ADJOURNMENT At 7:31 P.M., the City Council meeting was formally adjourned to a regular meeting on Tuesday, July 27, 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, CIVIC City Clerk [SEAL] RAMinutes\071304 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL JULY 27, 2004 There was Closed Session and the Open Session convened at 7:00 P.M., on Tuesday, July 27, 2004, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: 3 Councilmembers: Comerchero, Roberts, and Naggar Absent: 2 Councilmembers: Stone and Washington PRELUDE MUSIC The prelude music was provided by Kenji Oberlander. INVOCATION The invocation was given by Pastor Steve Struikmans of Rancho Community Church. PLEDGE OF ALLEGIANCE The pledge of allegiance was presented by Mayor Pro Tern Comerchero. Kaitivn's Law Awareness Month Proclamation Both Fire Marshal McBride and Community Service Officer Fanene accepted the proclamation and called attention to Kaitlyn's Law — the Unattended Child in Motor Vehicle Act, effective January 1, 2002, making it an infraction punishable by a fine to leave a child, six years of age or younger, unattended in a motor vehicle without the supervision of someone at least 12 years of age or older. National Kids Day Proclamation Ms. Michelle Arellano, CPO of Boys and Girls Club of Southwest Riverside County, thanked the City Council for its support; accepted the proclamation; and invited the public to the Celebration of Kids Event at the Boys and Girls Club on Saturday, August 7, 2004. Certificates of Achievement to Cary Crall, Alex Geyer, Justin Golledge, Tim Hope, Kyle Schrock, Steven Squire for attaining the rank of Eagle Scout Those Eagle Scouts in attendance accepted the Certificates of Achievement and briefly provided an overview of their Eagle Scout projects. R:VAinutes\072704 PUBLIC COMMENTS A. Mr. Richard Shahan, Temecula, commented on the need for an Olympic -sized swimming pool in the City. B. Ms. Pam Grender, Temecula, representing Temecula Valley Historical Society, Plaque Committee Chairperson, shared the finished brochures, containing maps of identifying historical properties in the City, which have been marked with bronze plaques, and a more detailed history of these locations. CITY COUNCIL REPORTS No reports given. 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 July 13, 2004. (This item was continued to the meeting of August 10, 2004.) 3 Resolution approving List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 Records Destruction Approval RECOMMENDATION: 4.1 Approve the scheduled destruction of certain City records in accordance with the City of Temecula approved Records Retention Policy. RAMinutes\072704 2 M Recreation Software Upgrade — Licensing, Hardware, Installation, and Maintenance RECOMMENDATION: 5.1 Authorize the purchase agreement with Active Network for the recreation software upgrade in the amount of $44,141.97. RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 04-85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY -MAINTAINED STREET SYSTEM (WITHIN TRACT NO. 25892 Award a Construction contract for Traffic Signal Installations at the Meadows Parkway/La Serena Way Intersection and the Meadows Parkway/Rancho Vista Road Intersection — Proiect Nos. PW03-07 and PW03-08 RECOMMENDATION: 7.1 Award a construction contract for Traffic Signal Installations at the Meadows Parkway/La Serena Way and Meadows Parkway/Rancho Vista Road intersections - Project Nos. PW03-07 and PW03-08 - to DBX, Inc. in the amount of $329,040.00 and authorize the Mayor to execute the contract; 7.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $32,904.00 which is equal to 10% of the contract amount; 7.3 Approve the appropriation of $72,494.00 from State Transportation Funds (Fund 101). RECOMMENDATION: 8.1 Approve the Reimbursement Agreement between the City of Temecula and Rancho California Water District for the State Route 79 South Sidewalk Improvement Project - Project No. PW01-02 - for the amount of $10,500.00 and authorize the Mayor to execute the agreement. RAMinutes\072704 10 RECOMMENDATION: 9.1 Accept the construction of the Pechanga Parkway Soundwall Improvements - Project No. PW99 -11 SW as complete; 9.2 Direct the City Clerk to 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; 9.3 Release the Labor and Materials Bond seven months after the filing of the Notice of Completion if no liens have been filed. I CJOIIy JGIVWGJ—LVf� VCUlclal11lllial VIVU V. IIIV., rcld IGllLa ralnWGV r11aA011U-QLU1III Drain Improvements (Wolf Valley Creek Channel) - Proiect No. PW99-11CH RECOMMENDATION: 10.1 Approve Amendment No. 1 to the agreement with LOR Geotechnical Group, Inc. in an amount not to exceed $54,570.00 to provide as needed geotechnical and material testing services for the Pechanga Parkway Phase 1113 Storm Drain Improvements (Wolf Valley Creek Channel — Stage 2) - Project No. PW99-11CH - and authorize the City Manager to execute the agreement. 10.2 Increase the City Manager's authority to approve amendments to the original agreement by $5,457.00 which will allow for a total contingency amount of $13,326.00, which is equal to 10% of the total amount of the agreement. 11 Promenade Mall Storefront Lease Agreement RECOMMENDATION: 11.1 Approve the lease agreement for a Police Department storefront facility in the Promenade Mall beginning July 14, 2004 and terminating after a five-year period. 12 Seventh Amendment to Agreement for Law Enforcement Services RECOMMENDATION: 12.1 Approve Amendment No. 7 to the agreement for law enforcement services between the County of Riverside and the City of Temecula to include hiring four additional officers. 13 13.1 Adopt a resolution entitled: RAMinutes\072704 RESOLUTION NO.04-86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPOINTING THE CITY TREASURER AND CONFIRMING THE AUTHORITY OF THE CITY TREASURER 14 City Treasurer's Statement of Investment Policy 15 RECOMMENDATION: 14.1 Adopt the Treasurer's Statement of Investment Policy as proposed by staff which provides safety, liquidity, and yield for City funds. RECOMMENDATION: 15.1 Authorize the Mayor to execute the Supplemental Agreement for fiscal year 2004-05 Community Development Block Grant Funds. 16 California Department of Justice — Drug and Alcohol Analysis RECOMMENDATION: 16.1 Authorize the City Manager to approve an additional expenditure of $20,000.00 from the Police Department budget to purchase services from the California Department of Justice for Drug and Alcohol analysis for Fiscal Year 2003-2004. 17 Amendment to Sales Tax Audit Agreement RECOMMENDATION: 17.1 Approve Amendment No. 5 to the Sales Tax Consulting Services and Recovery Agreement with Hinderliter De Llamas and Associates for $8,000. MOTION: Mayor Pro Tern Comerchero moved to approve Consent Calendar Item Nos. 1, 3 -17 (continuing Item No. 2 to the August 10, 2004, meeting). Councilman Roberts seconded the motion and electronic vote reflected approval with the exception of Councilman Stone and Councilman Washington who were absent. At 7:21 P.M., the City Council convened as the Temecula Community Services District, the Temecula Redevelopment Agency, and the Temecula Public Financing Authority. At 7:28 P.M., the City Council resumed with regular business. RWnutes\072704 PUBLIC HEARINGS 18 Amendment to the TMC Chapter 15.16 (Fire Sprinkler Exemption) (Continued from the July 13, 2004 City Council meeting.) RECOMMENDATION: 18.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 04-07 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA. AMENDING SUBSECTION 15.16.020.S1 OF CHAPTER 15.16 OF THE TEMECULA MUNICIPAL CODE TO CONDITIONALLY EXEMPT OPEN BARN STRUCTURES FROM THE REQUIREMENT FOR FIRE SPRINKLERS Fire Marshal McBride provided the staff report (of record). At this time, City Attorney Thorson introduced Ordinance No. 04-07. MOTION: Councilman Roberts moved to approve staff recommendation and, thereby, introduced Ordinance No. 04-07. The motion was seconded by Mayor Pro Tern Comerchero and electronic vote reflected approval with the exception of Councilman Stone and Councilman Washington who were absent. DEPARTMENTAL REPORTS No additional comments. CITY MANAGER'S REPORT In light of City Manger Nelson's absence, Assistant City Manager O'Grady extended his and staffs condolences to Shawn Nelson and his family for the loss of his father. CITY ATTORNEY'S REPORT There was no Closed Session. RAMinutes\072704 ADJOURNMENT At 7:32 P.M., the City Council meeting was formally adjourned to a regular meeting on Tuesday, August 10, 2004, at 5:00 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula, California, for the purpose of a Joint City Council/Planning Commission meeting. The regularly scheduled City Council meeting will follow at 7:00 P.M. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CIVIC City Clerk [SEAL] RAMinutesN072704 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 A THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the following claims and demands as set forth in Exhibit A, on file in the Office of the City Clerk, have been audited by the City Manager, and that the same are hereby allowed in the amount of $2,853,598.39. Section 2. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED, this 10th day of August, 2004. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] RJResos 2004/Resos 04- STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss CITY OF TEMECULA ) I, Susan W. Jones, CMC, City Clerk of the City of Temecula, hereby do certify that the foregoing Resolution No. 04- was duly adopted at a regular meeting of the City Council of the City of Temecula on the 10`h day of August, 2004 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk R:/Resos 2004/Resos 04- ' CITY OF TEMECULA LIST OF DEMANDS 07/22/04 TOTAL CHECK RUN: $ 871,858.61 07/29/04 TOTAL CHECK RUN: 1,599,820.81 07/29/04 TOTAL PAYROLL RUN: 381,918.97 TOTAL LIST OF DEMANDS FOR 08/10/04 COUNCIL MEETING: $ 2,853,598.39 DISBURSEMENTS BY FUND: CHECKS: 001 GENERAL FUND $ 807,470.91 165 RDA DEV-LOW/MOD SET ASIDE 315,483.40 190 COMMUNITY SERVICES DISTRICT 182,011.46 192 TCSD SERVICE LEVEL B 53.21 193 TCSD SERVICE LEVEL C 65,818.50 194 TCSD SERVICE LEVEL D 609.90 210 CAPITAL IMPROVEMENT PROJ. FUND 367,325.42 261 CFD 88-12 ADMIN EXPENSE FUND 3,996.46 271 CFD 01-2 HARVESTON IMPRV FUND 1,205.00 280 REDEVELOPMENT AGENCY-CIP 18,688.74 300 INSURANCE FUND 27,838.16 320 INFORMATION SYSTEMS 64,634.79 330 SUPPORTSERVICES 5,589.94 340 FACILITIES 5,840.40 380 RDA 2002 TABS DEBT SVC 802,183.13 470 475 CFD 01-2 HARVESTON DEBT SVC FUND CFD 03-3 WOLF CREEK DEBT SVC FUND 2,500.00 430.00 ' $ 2,471,679.42 100 GENERAL FUND $ 241,080.35 165 RDA-LOW/MODSETASIDE 5,951.75 190 COMMUNITY SERVICES DISTRICT 97,215.38 192 TCSD SERVICE LEVEL B 110.46 193 TCSD SERVICE LEVEL C 5,127.09 194 TCSD SERVICE LEVEL D 799.91 280 REDEVELOPMENT AGENCY-CIP 2,396.27 300 INSURANCE FUND 1,089.33 320 INFORMATION SYSTEMS 20,523.95 330 SUPPORTSERVICES 1,772.52 340 FACILITIES 5,851.96 381,918.97 TOTAL BY FUND: $ 2,853,598.39 PREPARED;MBA YONKER, SPECIALIST 1 , HEREBY CERTIFY THAT THE FOLLOWING IS TRUE AND CORRECT. G ENI RO RT /;\1A CTOR FINANCE I �✓. , HEREBY CERTIFY THAT THE FOLLOWING IS TRUE AND CORRECT. SHAW N NELSON, CITY MANAGER J apChkLst 07/2212004 11:29:23AM Final Check List CITY OF TEMECULA Page: 1 Bank: union UNION BANK OF CALIFORNIA (:heck# Date Vendor Description Amount Paid Check Total 355 07/22/2004 003626 TEMECULA GARDENS LP Pledge Fund Deposit 305,000.00 305,000.00 93194 07/22/2004 005126 A E G SOLUTIONS Auto CAD drawing supplies:CIP DNis 388.72 388.72 93195 07/22/2004 007899 A P C O FCC license application fee 210.00 210.00 93196 07/22/2004 002038 ACTION POOL & SPA SUPPLY Pool sanitizing chemicals 34.95 34.95 93197 07/22/2004 001281 ALHAMBRA GROUP June Idscp design: Winchester Rd 2,100.00 2,100.00 93198 07/22/2004 006915 ALLIE'S PARTY EQUIPMENT Hot Summer Nights equip rental 436.06 Sno Cone machine rental 26.68 462.74 93199 07/22/2004 002877 ALTA LOMA CHARTER LINES Day Camp excursion bus: S.D. Zoo 1,804.50 Smart excursion bus:S.D. Wild Animal 601.60 Day camp excursion bus:Movie Exp. 350.88 2,756.88 93200 07/22/2004 007898 AMERICAN FIRE SPRINKLER A AFSA Convention:9/11-14:Albanese 665.00 665.00 93201 07/22t2004 004240 AMERICAN FORENSIC NURSES July DUI druglalcohol on call Nurse fe 500.00 500.00 93202 07/22/2004 004022 AMERICAN MINI STORAGE, TE And storage unit C115 lease pmt 1,836.00 Annl storage unit B109 lease pmt 1,836.00 Ann'I storage unit F105 lease pmt 1,728.00 5,400.00 93203 07/22/2004 000747 AMERICAN PLANNING ASSOCI Membership dues: Dale West 250.00 250.00 93204 07/22/2004 007878 ANDERSON, BERNADINE Refund: July Fit Fun & Fab. 24.00 24.00 93205 07/22/2004 000101 APPLE ONE, INC. Temp help PPE 7/3 Wills 697.60 Temp help PPE 713 Medina 392.04 Temp help PPE 7/3 Barrett -Scott 108.00 1,197.64 93206 07/22/2004 007699 AQUAM AQUATIC SPECIALIST I Lifeguard chair footboard 430.00 430.00 93207 07/22/2004 003203 ARTISTIC EMBROIDERY TCSD Dept polo shirts 533.36 533.36 93208 07/22/2004 004546 AUNT KIZZYZ BOYZ Hot Summer Nights Entertainment 600.00 600.00 93209 07/22/2004 007874 BARR, HOLLY Refund: Level 1 Swim Lessons 30.00 30.00 Page:1 apChkLst 07/22/2004 11:29:23AM Final Check List CITY OF TEMECULA Page: 2 Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 93210 07/22/2004 004778 BERRYMAN & HENIGAR INC June design:R.Calif Rd Widening 16,444.08 June Temp B&S inspector: Grance 14,507.63 30,951.71 93211 07/22/2004 007895 BRANDER, LESLIE Refund: Kids Luv PreSoccer 84.00 84.00 93212 07/22/2004 000128 BROWN & BROWN OF CALIF. I Insurance policy renewal Mobile Equip 16,087.00 16,087.00 93213 07/22/2004 007055 BROWN, ANNETTE TCSD instructor earnings 24.00 24.00 93214 07/22/2004 007806 BROWN, HERMAN Reimb:Nt'I White Collar Crime Cf:6/7-9 655.79 655.79 93215 07/22/2004 006908 C C & COMPANY INC Hot Summer Nights Entertainment 900.00 900.00 93216 07/22/2004 001159 CALIF DEPT OF JUSTICE Fingerprinting ID svcs:Police Dept 2,522.00 2,522.00 93217 07/22/2004 001159 CALIF DEPT OF JUSTICE Fingerprinting ID svcs:HR dept 2,363.00 2,363.00 93218 07/22/2004 004248 CALIF DEPT OF JUSTICE/ACCT Fingerprinting ID svcs:HR dept 1,024.00 Fingerprinting ID svcs:HR dept 800.00 1,824.00 93219 07/22/2004 007883 CAMBRIAN HOMECARE Refund: Security Depst TCC 100.00 100.00 93220 07/22/2004 006075 CAMPBELL, KENTON SCOTT TCSD instructor earnings 596.40 596.40 93221 07/22/2004 002534 CATERERS CAFE C.Museum grand opening refreshme 2,126.28 2,126.28 93222 07/22/2004 004837 CHERRY VALLEY FEED & PET Food for police K-9 59.80 59.80 93223 07/22/2004 000137 CHEVRON U S A INC City vehicles fuel expense: Police 984.38 City vehicles fuel expense: CM 245.09 1,229.47 93224 07/22/2004 001326 CHULA VISTA, CITY OF Employee Relation tmg:Yates 1,525.00 1,525.00 93225 07/22t2004 005417 CINTAS FIRST AID & SAFETY First aid supplies: City Hall 60.85 60.85 93226 07/22/2004 005218 COMBE, ROCHELLE Refund:Toddler Swim Lessons (Mia) 30.00 Refund: Level 2 Swim Lessons 26.50 56.50 93227 07/22/2004 000442 COMPUTER ALERT SYSTEMS JuVAug/Sept Alarm Monitoring:City 1,659.00 1,659.00 Page2 apChkLst 07/22/2004 11:29:23AM Final Check List CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description 93228 07/22/2004 007888 CRV TEMECULA ESTATES LP Refund:Eng Depst: TR 25004 93229 07/22/2004 002990 DAVID TURCH & ASSOCIATES July Federal lobbyist svcs 93230 07/22/2004 006484 DEREK, DAVIS Summer Concert Series entertainment 93231 07/22/2004 003945 DIAMOND ENVIRONMENTAL Street painting portable restroom rental 93232 07/22/2004 004417 DISCOUNT SCHOOL SUPPLY C.Museum activities supplies 93233 07/22/2004 007889 DOMANSKI, NICOLETTE Refund:Kids Iw soccer 93234 07/22/2004 004192 DOWNS COMMERCIAL FUELI Fuel for city vehicles: TCSD 61343 Fuel for city vehicles: PW 61353 Fuel for city vehicles: Land 61345 93235 07/22/2004 001714 DREAM ENGINEERING INC June desgn svcs:Vail Bsketball Lighti 93236 07/22/2004 007880 DUNCAN-MOSES, CONNIE Refund: Cardio kickboxing 93237 07/22t2G04 001380 E S I EMPLOYMENT SERVICES Temp help PPE 7/09 Lontok Temp help PPE 7/9 Rush Temp help PPE 7/9 Novotny 93238 07/22/2004 005052 EMCOR SERVICE H.V.A.C. repair @ City Hall 93239 07/22/2004 003665 EMERITUS COMMUNICATIONS June long distance phone svcs 93240 07/22t2004 000164 ESGIL CORPORATION 93241 07/22/2004 001056 EXCEL LANDSCAPE June Plan check svos: B&S JUNELDSCP MNTC: N. SLOPES June Idscp impr: Comm. Facilities June Idscp impr:Childrens Museum June Idscp impr. Slope Area June Idscp impr.Crowne Hill June Idscp impr. Slopes June Idscp impr. Slope Area June Idscp impr. Hintergardt Park June Idscp impr. City Hall June Idscp impr. Comm. Facilities June Idscp impr. Slope Area Amount Paid 995.00 3,000.00 800.00 157.33 2,362.38 54.33 952.11 571.10 504.03 3,000.00 YbXeb: 1,200.00 1,048.80 824.18 166.64 53.37 3,604.02 17,988.00 8,628.00 4,473.00 2,400.00 2,316.00 2,060.00 1,030.00 1,000.00 576.00 360.00 296.00 Page: 3 Check Total 995.00 3,000.00 800.00 167.33 2,362.38 54.33 2,027.24 3,000.00 75.00 3,072.98 166.64 53.37 3,604.02 41.127.00 Page3 ar,ChkLst 07/22I2004 11:29:23AM Final Check List CITY OF TEMECULA Page: 4 Bank: union UNION BANK OF CALIFORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 93242 07/22/2004 004464 EXXONMOBIL CARD SERVICES Fuel expense for City vehicles 43.33 43.33 93243 07/22/2004 007873 FEDDOCK, KEVIN Refund: Junior lifeguard tmg 31.42 31.42 93244 07/22/2004 000165 FEDERAL EXPRESS INC Express mail services 164.23 164.23 93245 07/22/2004 007887 FERNANDEZ, DANIEL Refund: Security Depst CRC 100.00 100.00 93246 07/22/2004 001511 FI ELDMAN ROLAPP & ASSOCIA Financial analysis:Bufterfield CFD 4,646.34 Financial analysis: Harveston 2,849.07 Credit Invoice exceeds PO balance -1,294.39 6,201.02 93247 07/22/2004 007871 FIORENZA, KAREN Refund: Smart Excursions 62.00 62.00 93248 07/22/2004 003347 FIRST BANKCARD CENTER 000210 LEAGUE OF CALIF CITIES SN'04 League Conf:09/17-19:Nelson 390.00 002534 CATERERS CAFE SN Refshmnts:Legal Update Mtg 67.51 007148 MARIE CALLENDER WH Refrshmnt:CIP mtg w/Edison 65.25 522.76 93249 07/22/2004 004239 FISHER SEHGAL YANEZ INC June architectural svcs:Comm.Theater 10,804.24 10,804.24 93250 07/22/2004 003946 G T ENTERTAINMENT MC for C. Museum Grand Opening 250.00 MC for 4th of July Parade 150.00 400.00 93251 07/22/2004 007073 GERSLEY, MISTY LYNNE TCSD instructor earnings 181.44 181.44 93252 07/22/2004 007875 GIDEON, BRIDGET Refund:Parent & Me Swim Lessons 30.00 30.00 93253 07/22/2004 000177 GLENNIES OFFICE PRODUCTS Office supplies: Police dept 85.82 85.82 93254 07/22/2004 005311 H2O CERTIFIED POOL WATER June Pool cleaning svcs:CRC/TES 2,157.94 2,157.94 93255 07/22/2004 004811 HEWLETT PACKARD 4 Code Enforement Tablet PC 9,839.73 9,839.73 93256 07/22/2004 007688 HILTON FARNKOPF & HOBSON AB939 ann'I rept research 3,413.75 3,413.75 93257 07/22/2004 007890 HILTON, MARIA Refund:Cardio kickboxing 19.00 19.00 93258 07/22/2004 007792 HINTON, BEVERLY L. TCSD instructor earnings 112.00 112.00 PageA apChkLst Final Check List Page: 5 07/22/2004 11:29:23AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 93259 07/22/2004 007882 HO, ANNA Refund: Skyhawks Beginning golf 100.00 100.00 93260 07/22/2004 000193 I C M A Bk: Eco Dev:Strategies State/Local 47.29 47.29 93261 07/22/2004 003938 [AN DAVIDSON LANDSCAPE - I June Idscp design:Old Town Gateway 1,648.13 1,648.13 93262 07/22/2004 001123 INDUSTRIAL DISTRIBUTION GR Misc. Tools & Supplies for PW Mntc 305.47 305.47 93263 07/22/2004 001573 INLAND EMPIRE Eco Devel IEFC Sponsorship 3,000.00 3,000.00 93264 07/22/2004 001573 INLAND EMPIRE And membership: Gloria Wolnick 1,000.00 1,000.00 93265 07/22/2004 001517 INTEGRATED INSIGHTS DBA: H July EE assistance program svcs 702.81 702.81 93266 07/22/2004 001407 INTER VALLEY POOL SUPPLY I Pool sanitizing chemicals 397.86 397.86 93267 07/22/2004 007654 INTERACTIVE DESIGN Old Town mixed -use site studies 2,190.75 2,190.75 93268 07122/2004 004908 JIFFY LUBE 1878 City Vehicle mntc svcs:B&S 32.33 32.33 93269 07/22t2004 007886 JIMENEZ, MARY Refund: CRC Room Rental 155.00 Refund: Security Depst CRC 100.00 255.00 93270 07/22/2004 000203 JOBS AVAILABLE INC Theater Mgr/Prop Agent recruitment a 119.60 119.60 93271 07/22/2004 007671 JONES, MARILYN TCSD instructor earnings 1,225.00 1,225.00 93272 07/22/2004 000820 K R W & ASSOCIATES June eng plan check map svcs 2,160.00 2,160.00 93273 07/22/2004 001091 KEYSER MARSTON ASSOCIAT Affordable housing devel review svcs 1,164.38 June affordable housing analysis 690.75 1,855.13 93274 07/22/2004 004051 L O R GEOTECHNICAL GROUP June Geotech svcs:Pechanga Pkwy 1,090.00 1,090.00 93275 07/22/2004 004412 LEANDER, KERRY D. TCSD instructor earnings 1,400.00 1,400.00 93276 07/22/2004 006422 LEE, STACY Refund: Level 1 Swim Lessons 30.00 30.00 Pages apChkLst Final Check List Page: 6 07/22/2004 11:29:23AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 93277 07/22/2004 000482 LEIGHTON CONSULTING INC June Geotech svcs:Slurry Seal pdt 7,229.00 7,229.00 93278 07/22/2004 003726 LIFE ASSIST INC Supplies for Paramedic squad 111.92 Credit: Returned merchandise -40.22 71.70 93279 07/22J2004 006653 LITTLE TIKES COMMERCIAL Repair parts for Temeku Hill Prks 228.50 228.50 93280 07/22/2004 006897 LORY, SUSAN, J. TCSD instructor earnings 420.00 TCSD instructor eamings 392.00 TCSD instructor earnings 392.00 TCSD instructor earnings 280.00 TCSD instructor earnings 252.00 TCSD instructor earnings 168.00 TCSD instructor earnings 140.00 2,044.00 93281 07/22/2004 005090 LOS RANCHITOS HOME, Property dues: APN 922-140-010 25.00 Property dues: APN 922-190-035 25.00 50.00 93282 07/22/2004 007884 LYMAN, ROBERT Refund: Security Depst MPSC 100.00 100.00 93283 07/22t2004 003782 MAIN STREET SIGNS "Welcome Home/Drive Safely" Signs: 6,077.10 Markers/Street Signs: PW 479.49 "No Trespassing" Signs: PW 232.74 6,789.33 93284 07/22/2004 004068 MANALILI, AILEEN TCSD Instructor Earnings 285.27 TCSD Instructor Earnings 252.00 TCSD Instructor Earnings 224.00 761.27 93285 07/22/2004 001967 MANPOWER TEMPORARY SER Temp help W/E 05/16 JD/JN 1,121.04 Temp help W/E 06106 JD/JN 927.21 2,048.25 93286 07/22/2004 000217 MARGARITA OFFICIALS ASSN Jun sports prgm umpire svcs 2,400.00 2,400.00 93287 07/22/2004 001256 MARRIOTT HOTEL HtI:AFSA Conf:9/11-14:#83761056 572.91 572.91 93288 07/22/2004 002046 MASTER K 91NC FY 04/05 Police K-9 training 900.00 900.00 PageB apChkLst Final Check List Page: 7 07'/2212004 11:29:23AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 93289 07/22/2004 007210 MIDORI GARDENS Install master valve: Btrfld Stage Park 443.61 Install 3 Cherry Trees: Nakayama Par 300.00 Irrigation Maint: Duck Pond 284.68 Ldscp Maint: Various Parks 158.98 Ldscp Maint.:Sam Hicks Park 75.00 Ldscp Maint.:Veterans Park 75.00 Credit: Amt. exceeds agreement -25.00 Credit: Amt. exceeds agreement -25.00 Credit: Contract work -158.98 Credit: Contract work -284.68 843.61 93290 07/22t2004 007870 MILLER, ROBERT Refund:Tennis Camp Teen 105.00 105.00 93291 07/22/2004 004522 MULLIGANS FAMILY FUN CENT Summer Day Camp Excursion: 6/24 1,367.31 1,367.31 93292 07/22/2004 000230 MUNIFINANCIAL Jul -Sep Assessment Eng. Svcs:TCSD 4,756.99 4,756.99 93293 07/22/2004 000845 NATIONAL LEAGUE OF CITIES FY 04/05 City Membership Dues 3,671.00 3,671.00 93294 07/22/2004 000915 NATIONAL NOTARY ASSOCIATI Annual mbrshp: S.Mueller:15274686 45.00 45.00 93295 07/22/2004 007879 NETTLES, LOURDES Refund:Exercise-Belly Dancing 80.00 80.00 93296 07/22/2004 002139 NORTH COUNTY TIMES Jun ads: SMART/July 4th/Vet. Mem. 1,164.34 Jun recruit ads for H.R. Dept. 884.20 8/10/04-8/10/05 C.M. Subscr:230233 100.80 2,149.34 93297 07/22/2004 006592 O'DONNELL SCHOOL OF MUSI TCSD Instructor Earnings 1,120.00 1.120.00 93298 07/22/2004 007892 OIUM, MARY Refund:lntro Guitar 140.00 140.00 93299 07/22/2004 002105 OLD TOWN TIRE & SERVICE City Vehicle Repair/Maint Svcs 670.31 City Vehicle Repair/Maint Svcs 477.39 City Vehicle Repair/Maint Svcs 236.70 City Vehicle Repair/Maint Svcs 205.74 City Vehicle Repair/Maint Svcs 180.33 City Vehicle Repair/Maint Svcs 139.38 City Vehicle Repair/Maint Svcs 63.90 1,973.75 93300 07/22/2004 006849 ON SCENE OUTFITTERS list aid kit handouts: Medic Squad 423.07 423.07 Page:? apChkLst Final Check List Page: 8 O7/22/2004 11:29:23AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 93301 07/22t2004 005656 P A P A S.Diego Sem:9/15:K.Hardngton 55.00 Arcadia Sem:09/23:D. Camberos 55.00 Arcadia Sem:09/23:D.Thurman 55.00 165.00 93302 07/22/2004 007893 PADHY, KRUSHNA Refund:Level 3 Swim Lessons 30.00 30.00 93303 07/22/2004 000733 PARTY PZAZZ Canopy rental for July 41h: TCSD 49.50 49.50 93304 07/22/2004 007735 PATRIOT HEATING & AIR Res Imp Prgm: Mendoza, Jesus & Ya 2,295.00 2,295.00 93305 07/22/2004 000249 PETTY CASH Petty Cash Reimbursement 470.65 470.65 93306 07/22/2004 005625 PINGEL, JOHN Reimb: Hmind Security Cf:6/27-30 1,246.34 1,246.34 93307 07/22/2G04 000253 POSTMASTER Express Mail & Postal Svcs 140.65 140.65 93308 07/22/2004 000254 PRESS ENTERPRISE COMPAN 7/29/04-7/27105 PW subscr:6178628 160.16 160.16 93309 07/22/2004 004529 QUAID TEMECULA HARLEY-DA Jun motorcycles repair/maint:Police 3,319.33 3,319.33 93310 07/22/2004 004029 R J M DESIGN GROUP INC May Dsgn Svcs: Wolf Crk Spas Cmplx 13,847.71 13,847.71 93311 07/22/2004 002841 RAIN FOR RENT Irrigation rental:4th of July Fireworks 4,549.68 4,549.68 93312 07/22/2004 000262 RANCHO CALIF WATER DIST Various Water Meters 24,937.90 Various Water Meters 12,106.25 Various Water Meters 6,448.63 Various Water Meters 564.45 Various Water Meters 439.71 Various Water Meters 407.52 Various Water Meters 151.29 Various Water Meters 73.07 45,128.82 93313 07/22t2004 007897 RANCHO WEST APARTMENTS Refund:Ovrpmt monitoring fees inv#3 45.00 45.00 93314 07/22/2004 003742 REHAB FINANCIAL CORPORATI Jun Loan Collection Svcs: RDA 8.00 8.00 93315 07/22/2004 003591 RENES COMMERCIAL MANAGE Weed abate/clean up:R-O-W/City Lots 5,000.00 5,000.00 93316 07/22/2004 002110 RENTAL SERVICE CORPORATI Repair/maint of equip: PW Maint Div 13.94 13.94 PageB apChkLst Final Check List Page: 9 0712212004 11:29:23AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 93317 07/22/2004 000418 RIVERSIDE CO CLERK & May/Jun Recording & Copy Fees 13.00 13.00 93318 07/22/2004 006832 RIVERSIDE CO CLERK OF THE NtGExempt EA-112:Veterans Memoria 64.00 64.00 93319 07/222004 000268 RIVERSIDE CO HABITAT AprJun'04 K-Rat Payment 27,645.00 27,645.00 93320 07/22/2004 000406 RIVERSIDE CO SHERIFFS DEP May'04 Booking Fees 9,384.00 9,384.00 93321 07/22/2004 006365 RUBIN, STEVEN P. TCSD Instructor Earnings 368.00 368.00 93322 07/22/2004 000277 S & S ARTS & CRAFTS INC Rao Supplies:C. Museum 179.49 179.49 93323 07/22/2004 005278 SCIENCE ENRICHMENT SRVCS Entertainment:Family Fun Night:723 200.00 200.00 93324 07/22/2004 002864 SEA WORLD OF CALIFORNIA Day Camp Excursion - 729/04 4,425.00 4,425.00 93325 07/22/2004 007896 SEEDEN, FRANCINE Refund:Smart Excur-Wild Animal Prk 15.00 15.00 93326 07/22/2004 000645 SMART & FINAL INC Rao Supplies: High Hopes Prgm 106.20 Rec Supplies: Summer Day Camp 96.72 202.92 93327 07/22/2004 000722 SO CALF ASSN CODE ENF.OFF Basic Field/Legal Aspects:8/27-28/04 130.00 Report Writing/Mediation:10/29-30/04 130.00 260.00 93328 07/22/2004 000537 SO CALIF EDISON Jun 2-00-397-5059 Various Mtrs 5,385.06 Jul 2-25-393-4681 T.E.S. Pool 867.28 Jul 2-26-132-1707 Pauba Rd Park 156.70 Jul 2-24-628-8963 Btrfld Stage 26.52 6,435.56 93329 07/22/2004 001212 SO CALIF GAS COMPANY Jul City Facilities Gas Meters 2,656.35 Jul 095-167-7907-2 Fire Stn 84 124.05 2,780.40 93330 07/22/2004 000293 STADIUM PIZZA Rfrshmnts:Citizen Corp training:6/12 46.82 46.82 93331 07/22/2004 006145 STENO SOLUTIONS TRANSCRI Jun Transcription Svcs: Police 863.36 863.36 93332 07/22/2004 000752 STONE, JEFFREY Reimb:Nat'I League Conf:3104-09 1,760.32 1,760.32 93333 07/22/2004 007698 SWANK MOTIONS PICTURES, I Aug movie rentals:Smr Sunset Films 813.00 813.00 Page9 ap ChkLst Final Check List Page: 10 07/22/2004 11:29:23AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 93334 07/22/2004 007900 SYERS, KATHI as computer purchase prgm 2,000.00 2,000.00 93335 07/22/2004 000305 TARGET STORE Rec Supplies: High Hopes Prgm 310.29 Rec Supplies: TCC 187.27 Rec Supplies: High Hopes Prgm 96.33 Rec. Supplies: Aquatics 91.17 Rec. Supplies: MPSC 85.84 July 4th Supplies: TCSD 71.27 Rec. Supplies: Summer Day Camp 68.88 Office Supplies:PW Dept 63.10 Rec. Supplies: Aquatics 45.90 1,020.05 93336 07/22/2004 000307 TEMECULA TROPHY COMPAN "Yankee Doodle Dandy":Parade Awrd 994.34 Sponsorship Wall Plaque:C. Mus. 24.24 1,018.58 93337 07/22/2004 000306 TEMECULA VALLEY PIPE & SU Various Park Sites Irrigation Supplies 332.19 332.19 93338 07/22/2004 004274 TEMECULA VALLEY SECURITY Locksmith Svcs:Parka/City Hall 16.29 16.29 93339 07/22/2004 003941 TEMECULA WINNELSON COMP Plumbing Supplies: City Hall 158.61 158.61 93340 07/22/2004 003849 TERRYBERRY COMPANY as recogn awards: H.R. Dept. 692.50 692.50 93341 07/22/2004 007250 TETRA TECH INC May Dsgn Svcs:Guardrail Install 11,254.08 11,254.08 93342 07/22/2004 007877 TINTI, OLGA Refund:String orchestra ramp 50.00 50.00 93343 07/22/2004 003633 TOLL ROADS, THE Toll roads usage charges 91.85 91.85 93344 07/22/2004 003858 TOM RONEY ROOFING Res Imp Prgm: Lovell, Beverly 850.00 Credit: Customer's portion of payment -317.00 533.00 93345 07/22/2004 005937 TOMCZAK, MARIA T. TCSD Instructor Earnings 120.00 TCSD Instructor Eamings 12.00 132.00 93346 07/22/2004 000459 TUMBLE JUNGLE FITNESS GY TCSD Instructor Earnings 123.20 TCSD Instructor Earnings 123.20 246.40 93347 07/22/2004 004895 TUMBLES, J.W. TCSD Instructor Earnings 153.60 TCSD Instructor Earnings 140.80 TCSD Instructor Earnings 76.80 TCSD Instructor Earnings 76.80 TCSD Instructor Earnings 70.40 518.40 Page:10 apChkLst 07/2212004 11:29:23AM Final Check List CITY OF TEMECULA Page: 11 Bank: union UNION BANK OF CALIFORNIA (Continued) Check If Date Vendor Description Amount Paid Check Total 93348 07/22/2004 007885 TVP GROUP INC Refund:Sec. Deposit:6/26r04 100.00 100.00 93349 07/22/2004 007766 UNDERGROUND SERVICE ALE Underground svcs alert tickets:PW 102.20 102.20 93350 07/22/2004 004504 VAIL RANCH SELF STORAGE Jul Offsfte Storage: Records Mgmt 30.00 30.00 93351 07/22/2004 007876 VALDEZ, IMELDA Refund:Tennis Camp Teen 70.00 70.00 93352 07/22/2004 007881 VANCURA, ELVIRA Refund:Level 1 Swim Lessons 26.50 26.50 93353 07/22/2004 004261 VERIZON Jul root-5072 general usage 4,242.04 Jul roa-0073 general usage 208.34 Jul root-1473 P.D. O.T. Stn 124.13 Jul ro -1603 City Hall 89.77 Jul toot-8573 general usage 30.37 Jul )=-3923 Stone 27.18 4,721.83 93354 07/22/2004 004848 VERIZON SELECT SERVICES I Jul long distance phone svcs 1,873.02 1,873.02 93355 07/22/2004 007868 WAGER, DIANA Refund:Family Night-Animals/Science 76.00 76.00 93356 07/22/2004 007869 WALLER, SHERI Refund:Tennis Camp Kids 55.00 55.00 93357 07/22/2004 007872 WAYER, THOMAS Refund: Creative Beg's Mom & Me 35.00 35.00 93358 07/22/2004 003730 WEST COAST ARBORISTS INC Parks/Slopes Tree Trimming Maim. 5,980.00 Citywide Tree Trimming Maint Svcs 1,840.00 7,820.00 93359 07/22t2004 004826 WEST COAST OVERHEAD DOO Res Imp Prgm: Barnhart, Teresa 950.00 Res Imp Prog: Hogan, Eugene 225.00 1,175.00 93360 07/22/2004 007894 WEST, JENNIFER Refund:Miss Sues Dance 10.00 10.00 93361 07/22/2004 000621 WESTERN RIVERSIDE COUNC June'04 TUMF Fees 166,250.00 166,250.00 93362 07/22/2004 004829 W ILSON GROUP LLC, THE Jul State lobbyist svcs for City issues 3,500.00 3,500.00 93363 07/22t2004 007701 WOLF CREEK DEVELOPMENT, Refund: Fee Ovrpmt:Loma Linda/Pala 250.00 Refund: Fee Ovrpmt:Pala/Wolf Creek 250.00 500.00 93364 07/22/2004 007891 YANCOVICH, JAN MARIE Refund:Music Preschool 23.00 23.00 Page:11 apChkLst Final Check List Page: 12 07/22/2004 11:29:23AM CITY OF TEMECULA Grand total for UNION BANK OF CALIFORNIA: 871,858.61 Page:12 apChkLst Final Check List Page: 13 07/22/2004 11:29:23AM CITY OF TEMECULA 172 checks in this report. Grand Total All Checks: 871,868.61 Page:13 apChkLst Final Check List Page: 1 07/29/2004 3:45:29PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 356 07/27/2004 005460 U S BANK RDA Debt Service Pmt 802,183.13 802,183.13 357 07/29/2004 000283 INSTATAX (IRS) Federal Income Taxes Payment 69,283.93 69,283.93 358 07/29/2004 0004" INSTATAX (EDD) State Disability Ins Payment 17,908.58 17,908.58 359 07/29/2004 000389 U S C M WEST COBRA), OBRA - Project Retirement Payment 5,586.96 5,586.96 360 07/29/2004 000246 PERS (EMPLOYEES' RETIREME PERS ER Paid Member Contr Pmt 74,119.80 74,119.80 93365 07/29/2004 004148 AT&T July Long distance svcs: P.D. 105.87 105.87 93366 07/29/2004 000434 ACCELA.COM Accela Permits Plus ann'I mntc agrmnt 27,912.66 4 days on -site tmg for revise fees 2,960.00 30,872.66 93367 07/29/2004 002038 ACTION POOL & SPA SUPPLY Pool sanitizing chemicals 159.38 Pool sanitizing chemicals 38.62 198.00 93368 07/29/2004 003679 AEI CASC ENGINEERING Jefferson Rehab prjt reimb expenses 15.17 15.17 93369 07/29/2004 001916 ALBERT A WEBB ASSOCIATES Ann'[ admin:Win/Harveston I CFDO102 2,500.00 2,500.00 93370 07/29/2004 001281 ALHAMBRA GROUP June Idscp design:W inchester Rd 82.09 82.09 93371 07/29/2004 002877 ALTA LOMA CHARTER LINES Medieval Times family excursions bus 1.365.41 1,365.41 93372 07/29/2004 005037 AMERICAN ASPHALT SOUTH I June prgss pmt:Slurry Seal Project 27,569.57 27,569.57 93373 07/29/2004 004240 AMERICAN FORENSIC NURSES DUI Drug & Alcohol Screening 357.50 DUI Drug & Alcohol Screening 266.15 623.65 93374 07/29/2004 007913 ANDERSON, ELLEN Reimb Agnnnt Pmt:Soundwall Impry 600.00 600.00 93375 07/29/2004 000101 APPLE ONE, INC. Temp help PPE 7/10 Wills 584.24 Temp help PPE 7/10 Medina 232.32 Temp help PPE 7/10 Bryant 108.00 924.56 93376 07/29/2004 001561 ARCH WIRELESS July paging shipping/handling chrgs 8.00 8.00 Paget apChkLst Final Check List Page: 2 07/29/2004 3:45:29PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check If Date Vendor Description Amount Paid Check Total 93377 07/29/2004 007915 ARESTAD, LAURA Refund: Excursion/Teen-Raging H2O 30.00 30.00 93378 07/29/2004 004546 AUNT KIZZYZ BOYZ Hot Summer Nights entertainment 600.00 600.00 93379 07/29/2004 003137 BARKERS FOOD MACHINERY S TCC preventive mntc svc Jul/Aug/Sept 221.67 CRC preventive mntc svc Jul/AugrSep 202.67 Sr Ctr preventive mntc svc 152.00 576.34 93380 07/29/2004 004262 BIO-TOX LABORATORIES DUI Drug & Alcohol Screening 50.53 50.53 93381 07/29/2004 005122 BLUES BROKERS BAND, THE Summer Concert series entertainment 800.00 800.00 93382 07/29/2004 006721 BOISE CASCADE OFFICE Office supplies:finance 616.98 Office supplies:finance 68.50 Credit: Returned merchandise -82.90 602.58 93383 07/29/2004 007912 BOTELLO, TAMI Refund: Level 1 Swim Lessons 70.00 70.00 93384 07/29/2004 007910 BRADSHER, STEPHANIE Refund: Ex:Teen-Raging H2O 60.00 60.00 93385 07/29/2004 004176 BROADW ING July Long distance &Internet svos 1,775.02 1,775.02 93386 07/29/2004 002998 BRUNSW ICK CAL OAKS BOWL Day Camp bowling excursion 904.00 904.00 93387 07/29/2004 002099 BUTTERFIELD ENTERPRISES July Old town restroom lease 826.00 826.00 93388 07/29/2004 000638 CALIF DEPT OF CONSERVATIO Apr-Jun'04 pmt:strong motion 11,022.42 11,022.42 93389 07/29/2004 004405 COMMUNITY HEALTH CHARI Community Health Charities Payment 132.00 132.00 93390 07/29/2004 001193 COMP U S A INC Misc computer supplies: IS 49.55 49.55 93391 07/29/2004 002945 CONSOLIDATED ELECTRICAL Elect repairs @ City Hall 48.49 48.49 93392 07/29/2004 007917 CORREA, MANUEL Refund: Creative Beg's Mom & Me 35.00 35.00 93393 07/29/2004 006954 CRAFTSMEN PLUMBING & HVA CRC repair pump & motor 483.49 City Hall restroom plumbing repairs 304.73 788.22 Page2 apChkLst Final Check List Page: 3 07/29/2004 3:45:29PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check# Date Vendor Description Amount Paid Check Total 93394 07/29/2004 003272 DAISY WHEEL RIBBON Plotter Paper & Ink:GIS Division 209.68 209.68 93395 07/29/2004 004569 DAVID TAUSSIG & ASSOCIATE Special tax consulting: Roripaugh CFD 637.50 637.50 93396 07/29/2004 003945 DIAMOND ENVIRONMENTAL C. Museum portable restroom rental 274.65 SMART portable restrooms rental 264.32 SMART portable restrooms rental 246.32 C.Museum portable restroom rental 115.15 Vail Ranch portable restroom rental 71.85 Veterans Prk portable restroom rental 71.85 Lg Cnyn Prk portable restroom rental 71.85 Riverton Prk portable restroom rental 59.54 BttrOd Stage portable restroom rental 57.57 1,233.10 93397 07/29/2004 007904 DINGER, JEANNIHE Refund: Kids Luv Soccer Tot 89.00 89.00 93398 07/29/2004 005965 DIVERSIFIED PROTECTION UPS/batteries/air unit mntc contract 9,785.00 9,785.00 93399 07/29/2004 001380 E S I EMPLOYMENT SERVICES Temp help PPE 7/9 Grove 2,185.93 Temp help PPE 6130 Kanigowski 738.65 Temp help PPE 7/9 Cammarota 140.32 3,064.90 93400 07/29/2004 002390 EASTERN MUNICIPAL WATER 95366-02 Diego Dr Ldscp 466.24 466.24 93401 07/29/2004 005676 EMANUEL, DEBORAH Refund: ExcursiordTeen-Raging H2O 30.00 30.00 93402 07/29/2004 002577 ENGINEERING RESOURCES June Design svcs:Wolf Vlly Creek 195.00 195.00 93403 07/29/2004 001056 EXCEL LANDSCAPE June Idscp impr: Sports Parks 6,600.00 June Idscp impr. Facilities 2,215.00 8,815.00 93404 07/29/2004 007903 F.L.I.P. RACING FAST LIFE Refund: Security Depst CRC 100.00 100.00 93405 07/29/2004 000165 FEDERAL EXPRESS INC Express mail services 304.58 304.58 93406 07/29/2004 000166 FIRST AMERICAN TITLE Lot Book Rept: Cavazos 150.00 150.00 93407 07/29/2004 001135 FIRST CARE INDUSTRIAL MED Pre -employment physicals & drug test 160.00 Employee first aid care 84.55 Employee first aid care 72.25 316.80 93408 07/29/2004 000795 FRED PRYOR SEMINARS/CARE Gregg Reference Manual: Planning 46.22 46.22 Page3 apChkLst O7/29/2004 3:45:29PM Final Check List CITY OF TEMECULA Page: 4 Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 93409 07/29/2004 004178 FREEDOM SIGNS"""""'"""' Fac Imp Prgm: Pinch "A" Penny 2,424.37 Fac Imp Prgm: The Hitching Post 2,424.37 Fac Imp Prgm: Mad Madeline's Grill 1,756.88 Deduction: BCSE-404757 -25.00 6,580.62 93410 07/29/2004 005947 GOLDEN STATE OVERNIGHT Express Mail Service: Fire 53.78 53.78 93411 07/29/2004 002174 GROUP 1 PRODUCTIONS Imagination wkshp video production 250.00 250.00 93412 07/29/2004 004188 HARRIS & ASSOCIATES Facilities Acquisition Audit Svcs 1,205.00 1,205.00 93413 07/29/2004 003106 HERITAGE SECURITY SERVIC Security guard svcs:C.Museum 242.00 242.00 93414 07/29/2004 007919 HIGGINS, GREGORY Refund: SMART excursions - Lauren 85.00 Refund: SMART excursions - Karissa 25.00 110.00 93415 07/29/2004 005748 HODSON, CHERYL A. Support Payment 17.54 17.54 93416 07/29/2004 003624 HOWELL, ANN MARIE Dsgn City's ad in Fast Track brochure 517.20 517.20 93417 07/29/2004 007767 1 C COMPOUND COMPANY Asphalt patch supplies: PW mntc 686.15 686.15 93418 07/29/2004 003938 IAN DAVIDSON LANDSCAPE - I design svos Old Town Southern 172.88 172.88 93419 07/29/2004 001407 INTER VALLEY POOL SUPPLY I Pool sanitizing chemicals 349.65 Pool sanitizing chemicals 297.86 647.51 93420 07/29/2004 007911 JEANPLONG, JOHN Refund: CPR Training 25.00 25.00 93421 07/29/2004 004265 JEWELL FENCE COMPANY Res Imp Prgm: Lord, Jeff & Kimberly 294.00 294.00 93422 07/29/2004 007916 JORDAN, MELISSA Refund: Picnic Shelter RCSP 7/17 30.00 30.00 93423 07/29/2004 007902 JORDON, CATHERINE Refund: Security Depst TCC 100.00 100.00 PageA apChkLst Final Check List Page: 5 07f29/2004 3:45:29PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 93424 07/29/2004 006302 KIDZ LOVE SOCCER, INC TCSD instructor earnings 1,946.00 TCSD instructor earnings 1,680.00 TCSD instructor earnings 560.00 TCSD instructor earnings 448.00 TCSD instructor earnings 448.00 TCSD instructor earnings 392.00 TCSD instructor earnings 392.00 TCSD instructor earnings 224.00 TCSD instructor earnings 56.00 6,146.00 93425 07/29/2004 007914 KIMBERLY BOONE ASSOCIATE Refund: Teen Summer Day Camp 390.00 390.00 93426 07/29/2004 000206 KINKOS INC 93427 07/29/2004 003631 KLEINFELDER INC 93428 07/29/2004 001282 KNORR SYSTEMS INC 93429 07/29/2004 007188 LAERDAL MEDICAL CORP 93430 07/29/2004 003726 LIFE ASSIST INC 93431 07/29/2004 007918 LITTLE, SHERRIETA Stationery paper/misc supplies Stationery paper/misc supplies May design svcs:R.C.Rd Widening Pool Mntc:Chem-Quit injector Supplies for Paramedic squad Supplies for Paramedic squad Credit: Returned merchandise Refund: Summer Day Camp 93432 07/29/2004 004772 MAACO AUTO PAINTING & BOO City Vehicle Repair/Maint: TCSD 93433 07/29/2004 003782 MAINSTREETSIGNS 93434 07/29/2004 004141 MAINTEX INC 93435 07/29/2004 007680 MARITIME MUSEUM ASSN 93436 07/29/2004 006571 MELODY'S AD WORKS Sign Hardware: PW Maint Div Custodial Supplies: MPSC Custodial Supplies: TCC Custodial Supplies: CRC Custodial Supplies: Maint Fac Custodial Supplies: Old Town Custodial Supplies: C.Museum Custodial Supplies: T.Museum Water Toy Wrkshp:SMART Excur:7/8 Hot Smr Nights Marketing Svcs 96.85 16.16 620.00 236.19 568.39 2.437.08 -95.92 146.66 608.72 258.60 158.05 110.21 105.28 100.00 89.11 83.31 24.48 168.00 3,500.00 113.01 620.00 236.19 568.39 2,341.16 146.66 608.72 258.60 670.44 168.00 Pages apChkLst 07/29/2004 3:45:29PM Final Check List CITY OF TEMECULA Page: 6 Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 93437 07/29/2004 007210 MIDORI GARDENS Mainline repairs:Bahia Vista Park 188.25 188.25 93438 07/29/2004 001384 MINUTEMAN PRESS business cards:GF/GR/CD 128.49 128.49 93439 07/29/2004 001986 MUZAK -SOUTHERN CALIFORN Jul music broadcast:Old Town 64.86 64.86 93"0 07/29/2004 007224 N E C BUSINESS NETWORK Childrens Museum Cabling 1,627.48 1,627.48 93441 07/29/2004 002925 NAPA AUTO PARTS Paramedic Vehicle Maintenance 31.55 Paramedic Vehicle Maintenance 4.30 35.85 93442 07/29/2004 007922 NEILSON TRANSPORT Refund:SMART-Maritime Museum 10.00 10.00 93443 07/29/2004 007925 NELSON, JAMES Refund:Sec. Deposit: MPSC 100.00 100.00 93444 07/29/2004 001599 NORTH COUNTY BASKETBALL Apr -Jun B-ball Forfeits/Assignment fee 416.00 416.00 93445 07/29/2004 002139 NORTH COUNTY TIMES Jun Public Ntc Ads: Pin/City Clerk 3,422.76 3,422.76 93446 07/29/2004 002105 OLD TOWN TIRE & SERVICE City Vehicle Repair/Maint Svcs 508.87 City Vehicle Repair/Maint Svcs 437.66 City Vehicle Repair/Maint Svcs 185.63 City Vehicle Repair/Maint Svcs 81.29 City Vehicle Repair/Maint Svcs 20.00 1,233.45 93447 07/29/2004 003299 OLDER THAN DIRT GANG Musician: Hot Summer Nights 7/16 300.00 300.00 93448 07/29/2004 007920 ORTIZ, LINDA Refund:Summer Day Camp 20.00 20.00 93449 07/29/2004 004389 OUT OF THE ORDINARY IS Teambuilding: 8/5/04 900.00 900.00 93450 07/29/2004 002256 P & D CONSULTANTS INC Jun Bldg Inspector Svcs:Henderson 13,280.96 Jul Bldg Inspector Svc:Henderson 1,229.88 14,510.84 93451 07/29/2004 000472 PARADISE CHEVROLET CAD] Repair & Maint:Sr Center Van 223.48 223.48 93452 07/29/2004 004074 PARTY CITY OF TEMECULA IN Supplies for Children's Museum 69.97 69.97 93453 07/29/2004 001958 PERS LONG TERM CARE PROG PERS Long Tenn Care Payment 288.55 288.55 Pages apChkLst 07129/2004 3:45:29PM Final Check List CITY OF TEMECULA Page: 7 Bank: union UNION BANK OF CALIFORNIA (Continued) Check N Date Vendor Description Amount Paid Check Total 93454 07/29/2004 000249 PETTY CASH Petry Cash Reimbursement 455.01 Petry Cash Reimbursement 226.01 Petry Cash Reimbursement 71.16 762.18 93455 07/29/2004 001999 PITNEY BOW ES Jul -Sep Postage Meter Rental/Usage 269.11 269.11 93456 07/29/2004 002185 POSTMASTER - TEMECULA Jul -Aug Community Newsletter Mailing 4,200.00 4,200.00 93457 07/29/2004 006493 PROFESSIONAL WOMENS ROU FY 04/05 Sponsorship 1,000.00 1,000.00 93458 07/29/2004 000879 RADISSON HOTEL HtI:CMRTA Conf:10/19-22:Z.Smith 315.84 315.84 93459 07/29/2004 002072 RANCHO CALIF WATER DIST Plan Ck Depos0:Pauba Rd Impry 1,550.00 1,550.00 93460 07/29/2004 000262 RANCHO CALIF WATER DIST Various Water Meters 16,891.00 16,891.00 93461 07/29/2004 004483 RECREONICS INC Rescue Tubes for Aquatics Prgm 231.19 231.19 93462 07/29/2004 000526 REGENTS OF UNIVERSITY OF Urban Studies:9/22-12/08:D.West 417.00 417.00 93463 07/29/2004 000526 REGENTS OF UNIVERSITY OF Urban Studies:9/22-12/8:C.Damko 417.00 417.00 93464 07/29/2004 000526 REGENTS OF UNIVERSITY OF Urban Studies:9/22-12/B:M. Peters 417.00 417.00 93465 07/29/2004 003591 RENES COMMERCIAL MANAGE weed abate/cleanup:City chnls/R-O-W 5,000.00 5,000.00 93466 07/29/2004 007402 RICHARD BRADY & ASSOCIATE 5/30.6/26/04 Svcs: Mntc Fac Expan 5,499.90 5,499.90 93467 07/29/2004 002412 RICHARDS WATSON & May 2004 legal services 91,573.07 91,573.07 93468 07/29/2004 006124 RIVERSIDE BLUEPRINT engineering copier toner for map room 570.84 570.84 93469 07/29/2004 000411 RIVERSIDE CO FLOOD Constr. Inspection Fees:Pechanga Pk 55,388.00 55,388.00 93470 07/29/2004 000411 RIVERSIDE CO FLOOD May Plan Check Fee:Pechanga Pkwy 14.65 14.65 93471 07/29/2004 000406 RIVERSIDE CO SHERIFFS DEP Jun 2004 Booking Fees 2,980.80 2,980.80 Page:7 apChkLst Final Check List Page: 8 07/29/2004 3:45:29PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description 93472 07/29/2004 001365 RIVERSIDE COUNTY OF renew permit: Sam Hicks Park renew permit: K. Hintergardt Park 93473 07/29/2004 003587 RIZZO CONSTRUCTION INC Construct/install cargo box in O.T. 93474 07/29/2004 007113 RYLE, SHEILA H. TCSD Instructor Earnings 93475 07/29/2004 007233 SAN BERNARDINO, COUNTY O Motorcycle rental:P Kurylowicz 93476 07/29/2004 005227 SAN DIEGO COUNTY OF Support Pmt: 661183401610 93477 07/29/2004 004562 SCHIRMER ENGINEERING COR Add'I May plan check svcs: Fire Prev. Add'I May plan check svcs: Fire Prev. Add'I May plan check secs: Fire Prev. 93478 07/29/2004 007924 SCHRAGER, NICK Refund: Eng Deposit: Piasano Place 93479 07/29/2004 007617 SCIENCE KIT & BOREAL Supplies for Children's Museum 93480 07/29/2004 004460 SILVERADO BLUEGRASS BAN Entertainment: Hot Smr Nights 7/16 93481 07/29/2004 000645 SMART & FINAL INC Rec Supplies: SMART Program 93482 07/29/2004 000537 SO CALIF EDISON 93483 07/29/2004 005244 SOCIETY FOR HUMAN Rec Supplies: MPSC Rec Supplies: SMART Program Jul 2-02-351-4946 MPSC Jun 2-19-999-9442 Various Mfrs Jul 2-18-937-3152 T.Museum Jul 2-23-365-5992 Fire Stn 92 Jul 2-20-817.9929 P.D.O.T. Sin Jul 2-11-007-0455 6th Street Jul 2-22-891-0550 Various Mfrs Jul 2-21-911-7892 O.T. Prk Lot Jul 2-19-171-8568 Wedding Chpl Jul 2-21-981-4720 Hwy 79 Jul 2-14-204-1615 Front St Rdio 10/01/04-9/30/05 mbrshp:B.Gutierez 93484 07/29/2004 007923 SOLTIS & COMPANY, INC. Refund: Permit Fees 93485 07/29/2004 000519 SOUTH COUNTY PEST Pest Control Svcs: Fire Stn 84 Pest Control Svcs: Fire Stn 92 Amount Paid 89.00 89.00 600.00 857.60 1,759.00 25.00 200.00 200.00 200.00 995.00 1,014.03 650.00 180.35 147.02 20.72 1,535.14 1,254.11 1,087.76 495.36 406.20 292.64 248.24 127.56 73.51 55.31 21.95 80.00 42.00 Check Total 178.00 600.00 857.60 1,759.00 25.00 .rr rr r 1,014.03 650.00 348.09 5,597.78 160.00 122.00 PageB apChkLst 0729/2004 3:45:29PM Final Check List CITY OF TEMECULA Page: 9 Bank: union UNION BANK OF CALIFORNIA (Continued) Check If Date Vendor Description Amount Paid Check Total 93486 07/29/2004 007906 SOUTHWEST CHRISTIAN CHUR Refund:Sec. Deposit: Picnic 7/4 100.00 100.00 93487 07/29/2004 007921 SPAULDING, NANCY Refund:Teen Summer Day Camp 570.00 570.00 93488 07/29/2004 005786 SPRINT Jul Acct Level Chrgs 33.83 33.83 93489 07/29/2004 000293 STADIUM PIZZA Refreshments: SMART Program 100.82 100.82 93490 07/29/2004 007905 SUNRIDGE COMM CHURCH Refund:Sec. Deposit: Picnic 6/13 100.00 100.00 93491 07/29/2004 003599 T Y LIN INTERNATIONAL May -Jun Constr Support:R.C.Bddge 510.00 510.00 93492 07/29/2004 007607 T.V.U.S.D. CHILD CARE Refund:Sec. Deposit: Picnic 7/2 100.00 100.00 93493 07/29/2004 007901 TANGONAN, CAROLINE Refund:lndoor Rental:MPSC 206.00 Refund:Sec. Deposit:MPSC 100.00 306.00 93494 07/29/2004 000305 TARGET STORE Supplies for Children's Museum 35.99 35.99 93495 07/29/2004 006914 TEMECULA COPIERS INC. Jun Copier Maint/Usage Chrgs 4,210.69 4,210.69 93496 07/29/2004 006896 TEMECULA MUSIC ACADEMY I TCSD Instructor Earnings 240.00 TCSD Instructor Earnings 120.00 360.00 93497 07/29/2004 004274 TEMECULA VALLEY SECURITY Locksmith Svcs:Police Storefront 168.10 Locksmith Svcs:Police Storefront 90.00 258.10 93496 07/29/2004 002766 THOMAS BROTHERS MAPS Thomas Bros GIS Database:I.S. Dept. 3,232.50 3,232.50 93499 07/29/2004 000668 TIMMY D PRODUCTIONS INC DJ Svcs Teen Dance 5128/04 350.00 DJ Svcs Teen Prgm 6/26/04 350.00 Sound Sys/MC Svc:C.Museum:6r25 250.00 950.00 93500 07/29/2004 000319 TOMARK SPORTS INC Sports Equipment: Various Parks 122.15 122.15 93501 07/29/2004 002452 TOP LINE INDUSTRIAL equipment parts:PW Maint Div 24.28 24.28 93502 07/29/2004 007433 TOVEY SHULTZ CONSTRUCTIO Prgs Pmt #4: Community Theater 224,777.60 224,777.60 93503 07/29/2004 005873 TRI AD ACTUARIES INC Jul Administration Fees 348.50 add'I participant for July 8.50 357.00 Page9 apChkLst Final Check List Page: 10 07/29/2004 3:45:29PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 93504 07/29/2004 000325 UNITED WAY United Way Charities Payment 207.00 207.00 93505 07/29/2004 004261 VERIZON Release Claims Agreement Payment 93506 07/29/2004 004261 VERIZON Jul root-0074 general usage Jul root-3564 alarm 93507 07/29/2004 004789 VERIZON INTERNET SOLUTION Internet svcs:P.D. O.T. Sin 93508 07/29/2004 007482 WE CARE COMPANY Fire Safety Trailer. Fire Dpt. 93509 07/29/2004 003730 WEST COAST ARBORISTS INC Tree Maint Svcs: R.C/79S/79N Jun Tree Trimming Maint Svc:Citywide 93510 07/29/2004 007907 WESTERN CHAPTER INTL SO I PM/Arboriculture:8/19/04:D.T. 93511 07/29/2004 000621 WESTERN RIVERSIDE COUNC FY 04105 Council membership dues 93512 07/29/2004 000341 WILLDAN ASSOCIATES INC May Dsgn Svcs: Pechange/Muirfield 420.88 420.88 256.88 55.89 312.77 42.29 42.29 8,000.27 8,000.27 11,400.00 1,396.00 12,796.00 110.00 110.00 11,356.00 11,356.00 607.50 607.50 93513 07/29/2004 007386 YARY SPORTS LTD Group Photos/Frame:Fire Dept. 102.00 102.00 93514 07/29/2004 003776 ZOLL MEDICAL CORPORATION Paramedic Medical Supplies 778.18 Paramedic Medical Supplies 544.39 1,322.57 Grand total for UNION BANK OF CALIFORNIA. 1,599,820.81 Page:10 ITEM 4 CITY ATTORNEY DIRECTOR OF F CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: August 10, 2004 SUBJECT: City Treasurer's Report as of June 30, 2004 PREPARED BY: Karin Grance, Revenue Managerfi'k--- Shannon Domenigoni, Accountant RECOMMENDATION: That the City Council receive and file the City Treasurer's Reportas of June 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 June 30, 2004. FISCAL IMPACT: None Attachments: City Treasurer's Report as of June 30, 2004 City of Temecula City Treasurer's Report As of June 30, 2004 Cash Activity for the Month of June: Cash and Investments as of June 1, 2004 $ 131,144,654 Cash Receipts 6,713,820 Cash Disbursements (9,629.722) Cash and Investments as of June 30, 2004 $ 128,229,752 Cash and Investments Portfolio: Maturity/ Purchase Termination Market Par/Book Type of Investment Institution Yield Date Date Value Balance Petty Cash City Hall n/a $ 1,500 General Checking Union Bank n/a (1,432,406) (1) Flex Benefit Demand Deposits Union Bank n/a 354 (1) Local Agency Investment Fund State Treasurer-LAIF 1.469 % 57,275,423 (2) Federal Agency- Callable Federal Home Loan Mortgage Co 2.000 % 06/062003 06/302006 979,800 1,000,000 Federal Agency -Callable Federal Home Loan Bank 1.885 % 06262003 01232006 987,500 1,000,000 Federal Agency- Callable Federal Home Loan Bank 2.250 % 06262003 07242006 983,750 1,000,000 Federal Agency -Callable Federal Home Loan Bank 2.500 % 07/162003 08/142006 1,975,620 2,000,000 Federal Agency- Callable Federal Home Loan Mortgage Co 3.000 % 12/302003 03292007 977,250 996,000 Federal Agency- Callable Federal Home Loan Bank 3.000 % 03292004 12/282007 3,907,520 4,000,000 Federal Agency -Callable Federal Home Loan Bank -BDS 3.000% 04/072004 01/072009 2,852,893 2,965,000 Federal Agency- Callable Federal Home Loan Bank - BDS 3.000 % 04222004 01222008 1,951,260 2,000,000 Federal Agency- Callable Federal Home Loan Bank - BDS 3.070 % 04/152004 01/152008 1,956,980 2,000,000 Federal Agency- Callable Federal Home Loan Bank - BDS 3.100 % 04/082004 01/082008 2,999,055 3,050,000 Federal Agency -Callable Federal Home Loan Bank -BDS 3.125 % 04/162004 01/162009 980,000 1,000,000 Federal Agency -Callable Federal Home Loan Bank -BDS 3.150% 04/142004 01/142008 980,940 1,000,000 Federal Agency -Callable Federal Home Loan Bank -BDS 3.520% 04/302004 01/302008 1,983,760 2,000,000 Federal Agency -Callable Federal Home Loan Bank -BDS 3.810% 05/13/2004 02/132008 999,690 1,000,000 Checking Account - Parking Citations Union Bank n1a 3,895 Certificate of Deposit - Retention Escrow Community National Bank n/a 271,436 Bond Fund - CFD 88-12 U.S. Bank (First Aim Treasury) n/a 0 (Money Market Account) Delinquency Maintenance Account-CFD 88-12 CDC Funding Corp 5,430% 09/012017 500,000 (Investment Agreement) Delinquency Maintenance Account - CFD 88-12 U.S. Bank (First Am Treasury) 0.560 % 595,780 (Money Market Account) Reserve Fund -CFD 88-12 CDC Funding Corp 5.430% 09/012017 1,531,469 (Investment Agreement) Reserve Account - CFD 88-12 U.S. Bank (First Am Treasury) 0.540 % 17 (Money Market Account) Improvement Fund - CFD 01-2 U.S. Bank (First Am Treasury) 0.560 % 3,538,687 (Money Markel Account) Special Tax Fund- CFD 01-2 U.S. Bank (First Am Treasury) 0.560 % 957,373 (Money Markel Account) Admin Expense Fund - CFD 0 1 -2 U.S. Bank (First Am Treasury) 0,560 % 772,159 (Money Market Account) Variable Bond Fund - CFD 01-2 U.S. Bank (First Am Treasury) 0.560 % 2,753 (Money Market Account) Interest Differential Fund - CFD 01-2 U.S. Bank (First Am. Treasury) 0.560 % 131,279 (Money Market Account) City Improvement Fund - CFD 03-1 U.S. Bank (First Am Treasury) 0,560 % 170,031 (Money Market Account) City Improvement Fund - CFD 03-1 State Treasurer-LAIF 1.469 % 1,224,999 (Local Agency Investment Fund) Cal Trans Improvement Fund - CFD 03-1 U.S. Bank (First Am Treasury) 0.560 % 1,115 (Money Market Account) Cal Trans Improvement Fund - CFD 03-1 State Treasurer-LAIF 1.469 % 1,002,000 (Local Agency Investment Fund) Acquisition Account Fund - CFD 03-1 U.S. Bank (First Am Treasury) 0.560 % 1,329 (Money Market Account) Acquisition Account Fund -CFD 03-1 State Treasurer-LAIF 1.469% 1,292,000 (Local Agency Investment Fund) Special Tax Fund - CFD 03-1 U.S. Bank (First Am Treasury) 0.560 % 413,797 (Money Market Account) Capital Interest Fund - CFD 03-1 U.S. Bank (First Am Treasury) 0.560 % 44,702 (Money Market Account) Page 1 City of Temecula City Treasurer's Report As of June 30, 2004 Reserve Fund - CFD 03-1 Aig Match Fed Corp Ref 4.830 % (Investment Agreement) Reserve Fund - CFD 03-1 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) City Improvement Fund - CFD 03-3 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) City Improvement Fund - CFD 03-3 State Treasurer-LAIF 1.469 % (Local Agency Investment Fund) EMWD Improvement Fund - CFD 03-3 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) EMWD Improvement Fund -CFD 03-3 State Treasurer-LAIF 1.469 % (Local Agency Investment Fund) Acquisition Account Fund - CFD 03-3 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) Acquisition Account Fund -CFD 03-3 State Treasurer-LAIF 1.469 % (Local Agency Investment Fund) Capital Interest Fund - CFD 03-3 U.S. Bank (First Am Treasury) 0,560 % (Money Market Account) Capital Interest Fund - CFD 03-3 State Treasurer-LAIF 1.469 % (Local Agency Investment Fund) Reserve Fund - CFD 03-3 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) Cost of Issuance Fund - CFD 03-3 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) Improvement Fund - AD 03-04 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) Redemption Fund - AD 03-04 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) Admin Expense Fund - AD 03-4 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) Reserve Fund - AD 03-04 U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) Project Account - RDA TABS U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) Project Account -RDA TABS State Treasurer-LAIF 1.469 % (Local Agency Investment Fund) Reserve Account - RDA TABS U.S. Bank (First Am Treasury) n/a (Surety Bond) Project Fund - TCSD COPS U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) Project Fund -TCSD COPS StateTreasurer-LAIF 1.469% (Local Agency Investment Fund) insta0ment Payment Fund -TCSD COPS U.S. Bank (First Am Treasury) 0.560 % (Money Market Account) (I) -This amount is net of outstanding checks. (2)-At June 30, 2004 total market value (including accmed interest) for the Local Agency Investment Fund (LAIF) was $57,637,500,817. The City's proportianate share of that value is $57,182,876. 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. 863,900 9,711 7,622 7,788,000 2,950 3,629,000 9,941 9,914,000 1,421 834,000 2,174,790 89,991 790,991 61,401 31,274 99,810 31,242 5,882,219 1 9,513 2,796,183 101 $ 128,228,752 Page 2 CITY OF TEMECULA Cash and Investment Report Through June 2004 Fund Total 001 GENERAL FUND 26,199,498.12 100 STATE GAS TAX FUND 363,896.12 101 STATE TRANSPORTATION FUND 73,377.55 120 DEVELOPMENT IMPACT FUND 14,989,716.99 140 COMMUNITY DEV BLOCK GRANT 0.00 150 AB 2766 FUND 139,578.34 160 AB 3229 COPS 0.00 165 RDA LOW/MOD - 20% SET ASIDE 8,280,480.89 170 MEASURE A FUND 3,992,233.97 190 TEMECULA COMMUNITY SERVICES DISTRICT 722,457.24 192 TCSD SERVICE LEVEL "B" STREET LIGHTS 160,436.32 193 TCSD SERVICE LEVEL "C" LANDSCAPE/SLOPE 388,234.77 195 TCSD SERVICE LEVEL "R" STREET/ROAD MAINT 29,168.83 210 CAPITAL IMPROVEMENT PROJECTS FUND 19,801,574.52 261 CFD 88-12 ADMIN EXPENSE FUND 29,023.77 271 CFD 01-2 HARVESTON IMPROVEMENT FUND 3,535,962.09 273 CFD 03-1 CROWNE HILL IMPROVEMENT FUND 3,681,473.81 274 AD 03-4 JOHN WARNER RD IMPROVEMENT FUND 762,610.04 275 CFD 03-3 WOLF CREEK IMPROVEMENT FUND 21,351,513.40 280 REDEVELOPMENT AGENCY - CEP PROJECT 8,390,941.93 300 INSURANCE FUND 1,307,889.31 320 INFORMATION SYSTEMS 519,935.76 330 SUPPORT SERVICES 172,236.19 340 FACILITIES 47,696.10 380 RDA 2002 TABS DEBT SERVICE FUND 2,687,808.57 390 TCSD 2001 COP's DEBT SERVICE FUND 2,265.87 460 CFD 88-12 DEBT SERVICE FUND 3,640,973.33 470 CFD 01-2 HARVESTON DEBT SERVICE FUND 2,140,141.60 471 CFD 98-1 WINCHESTER HILLS DEBT SERVICE 11,512.37 473 CFD 03-1 CROWNE HILL DEBT SERVICE FUND 1,506,412.14 474 AD03-4 JOHN WARNER ROAD DEBT SERVICE 189,119.64 475 CFD03-3 WOLF CREEK DEBT SERVICE FUND 3,110,682.72 Grand Total: 128,228,752.30 ITEM 5 APPROVAL CITYATTORNEY `i DIRECTOR OF FINAL CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: iI) I"P William G. Hughes, Director of Public Works/City Engineer DATE: August 10, 2004 SUBJECT: Award a Construction Contract for Pechanga Parkway Soundwall Landscape Improvements - Project No. PW99-11 LS PREPARED BY: Greg Butler, Principal Engineer Brian Guillot, Assistant Engineer RECOMMENDATION: That the City Council: Award a construction contract for Pechanga Parkway Soundwall Landscape Improvements - Project No. PW99-11 LS to America West Landscape, Inc. in the amount of $199,595.00 and authorize the Mayor to execute the contract. 2. Authorize the City Manger to approve change orders not to exceed the contingency amount of $19,959.50, which is equal to 10% of the contract amount. BACKGROUND: On November 12, 2002, the City Council authorized the Public Works Department to solicit construction bids for the Pechanga Parkway Soundwall Improvement project. The project provided for the construction of a sound wall to reduce noise for homeowners along Pechanga Parkway from Clubhouse Drive to Via Eduardo. The contract was awarded and construction of the masonry wall was completed this month; however, a portion of the landscaping restoration along Pechanga Parkway was not included in that scope of work. Typically, the homeowners association for each housing tract maintains the parkway landscaping. This was true for Pechanga Parkway with the exception of the area between Loma Linda Road and Via Gilberto, which was the responsibility of the individual property owners fronting Pechanga Parkway. The property owners were given the opportunity to join the City landscape maintenance district, and they agreed to do that with positive election results being certified on June 24, 2003, by City Council. In order to bring the parkway landscaping up to City standards, the Public Works Department prepared plans and specifications to construct the landscaping at the subject location. Originally, this work was bid as a change order with the sound wall contractor; however, it was determined that their proposal was too expensive. The project was later advertised for public bid resulting in a cost savings of $76,373.42. RAAGENDA REPORTS@004\081004\PW 99-11 LS AwaM.DOC Five (5) bids were received and publicly opened and read aloud on Monday, July 26, 2004. The results are as follows: 1. America West Landscape. $199,595.00 2. Diversified Landscape $208,983.00 3. Marina Landscape $225,993.00 4. C.S. Legacy Construction $231,500.00 5. A & B Landscaping $239,870.00 Staff has reviewed the bid proposals and found America West Landscape, Inc. of Bellflower, California to be the lowest responsible bidder for this project. America West Landscape, Inc. has recently satisfactorily completed similar work for other agencies. The specifications allow sixty (60) working days for the completion of this project. A copy of the bid summary is available for review in the City Engineer's office. The Engineering estimate was $200,000.00. FISCAL IMPACT: The Pechanga Parkway Soundwall Improvement Project, Project No. PW99- 11 LS is a portion of the Pechanga Parkway Improvements — Phase II Capital Improvement Project that is funded with Development Impact Fees - Street Improvements, a contribution from the Pechanga Indian Tribe, a Public Lands and Highways Grant, the Wolf Creek Community Facilities District, and AD-159. The base amount of the landscape contract is $199,595.00; adding a 10% contingency of $19,959.50 results in a total construction cost of $219,554.50. Adequate funds are available in Account No. 210-165-668-5804. ATTACHMENTS: 1. Project Locations 2. Project Descriptions 3. Contract RAGENDA REPORTW004W810041PW99-11 L$ AWard.DOC M F�1 a ii k d d as O oo O oo O 61 ry. tl (~ W N y vl oNo t�+t M CB v n T V N Ci U U 6s 64 fA 64 Vf 69 H1 69 O s N N cv va va O o0 M O (`i M�o N N 0% 69 64 cs 69 64 69 va 61) CD 0 CD CD 0 o o�0 n Ci n %C C v* N d FH 4s Vi 64 V) 69 69 U � q W Pr y 2 O q�j- U A F d d U U A W F oD O Vi O OD1 Vl O h N (ODr1 Mn � O tI h •--� 7 N V' 7 V N 64 6 69 69 69 69I C4 II O � 0 U � p C o a� F 3 Aso k�o � e:o w y co A a ,q,gxw v on �aaa��F CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT CONTRACT FOR PROJECT NO. PW99-11LS PECHANGA PARKWAY SOUNDWALL LANDSCAPE IMPROVEMENTS THIS CONTRACT, made and entered into the 10th day of August, 2004, by and between the City of Temecula, a municipal corporation, hereinafter referred to as "CITY", and American West Landscape, Inc., hereinafter referred to as "CONTRACTOR." W ITNESSETH: That CITY and CONTRACTOR, for the consideration hereinafter named, mutually agree as follows: CONTRACT DOCUMENTS. The complete Contract includes all of the Contract Documents, to wit: Notice Inviting Bids, Instructions to Bidders, Proposal, Performance Bond, Labor and Materials Bond, Plans and Specifications entitled PROJECT NO. PW99- 11LS, PECHANGA PARKWAY SOUNDWALL LANDSCAPE IMPROVEMENTS, Insurance Forms, this Contract, and all modifications and amendments thereto, the State of California Standard Plans and Specifications for Construction of Local Streets and Roads, (latest edition), issued by the California Department of Transportation, where specifically referenced in the Plans, Special Provisions, and Technical Specifications, and the latest version of the Standard Specifications for Public Works Construction, including all supplements as written and promulgated by Public Works Standards, Inc (hereinafter, "Standard Specifications") as amended by the General Specifications, Special Provisions, and Technical Specifications for PROJECT NO. PW99-11LS, PECHANGA PARKWAY SOUNDWALL LANDSCAPE IMPROVEMENTS. Copies of these Standard Specifications are available from the publisher: BNi Building News Division of BNi Publications, Inc. 1612 South Clementine St. Anaheim, California 92802 (714) 517-0970 The Standard Specifications will control the general provisions, construction materials, and construction methods for this Contract except as amended by the General Specifications, Special Provisions, and Technical Specifications for PROJECT NO. PW99-11LS, PECHANGA PARKWAY SOUNDWALL LANDSCAPE IMPROVEMENTS. In case of conflict between the Standard Specifications and the other Contract Documents, the other Contract Documents shall take precedence over, and be used in lieu of, such conflicting portions. Where the Contract Documents describe portions of the work in general terms, but not in complete detail, it is understood that the item is to be furnished and installed completed and in place and that only the best general practice is to be used. Unless otherwise specified, the CONTRACTOR shall furnish all labor, materials, tools, equipment, and incidentals, and do all the work involved in executing the Contract. CONTRACT C-1 RtiplprojectsTW99-11 Mag reementslcontract The Contract Documents are complementary, and what is called for by anyone shall be as binding as if called for by all. Any conflict between this Contract and any other Contract Document shall be resolved in favor of this Contract. 2. SCOPE OF WORK. CONTRACTOR shall perform everything required to be performed, shall provide and furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the following: PROJECT NO. PW99-11LS, PECHANGA PARKWAY SOUNDWALL LANDSCAPE IMPROVEMENTS All of said work to be performed and materials to be furnished shall be in strict accordance with the Drawings and Specifications and the provisions of the Contract Documents hereinabove enumerated and adopted by CITY. 3. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished and work performed and completed under the direction and supervision, and subject to the approval of CITY or its authorized representatives. 4. CONTRACT AMOUNT AND SCHEDULE. The CITY agrees to pay, and CONTRACTOR agrees to accept, in full payment for, the work agreed to be done, the sum of: ONE HUNDRED NINETY NINE THOUSAND FIVE HUNDRED NINETY FIVE DOLLARS and NO CENTS ($199,595.00), the total amount of the base bid. CONTRACTOR agrees to complete the work in a period not to exceed twenty (20) working days, commencing with delivery of a Notice to Proceed by CITY. Construction shall not commence until bonds and insurance are approved by CITY. 5. CHANGE ORDERS. All change orders shall be approved by the City Council, except that the City Manager is hereby authorized by the City Council to make, by written order, changes or additions to the work in an amount not to exceed the contingency as established by the City Council. 6. PAYMENTS A. LUMP SUM BID SCHEDULE: Before submittal of the first payment request, the CONTRACTOR shall submit to the City Engineer a schedule of values allocated to the various portions of the work, prepared in such form and supported by such data to substantiate its accuracy as the City Engineer may require. This schedule, as approved by the City Engineer, shall be used as the basis for reviewing the CONTRACTOR's payment requests. B. UNIT PRICE BID SCHEDULE: Pursuant to Section 20104.50 of the Public Contract Code, within thirty (30) days after submission of a payment request to the CITY, the CONTRACTOR shall be paid a sum equal to ninety percent (90%) of the value of the work completed according to the bid schedule. Payment request forms shall be submitted on or CONTRACT C-2 RAdp1projects1PW99-1I LStag reementslcontract about the thirtieth (30th) day of each successive month as the work progresses. The final payment, if unencumbered, or any part thereof unencumbered, shall be made sixty (60) days after acceptance of final payment and the CONTRACTOR filing a one-year Warranty and an Affidavit of Final Release with the CITY on forms provided by the CITY. C. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the City Manager, stating that the work for which payment is demanded has been performed in accordance with the terms of the Contract, and that the amount stated in the certificate is due under the terms of the Contract. Partial payments on the Contract price shall not be considered as an acceptance of any part of the work. D. Interest shall be paid on all undisputed payment requests not paid within thirty (30) days pursuant to Public Contracts Code Section 20104.50. Public Contract Code Section 7107 is hereby incorporated by reference. E. In accordance with Section 9-3.2 of the Standard Specifications for Public Works Construction and Section 9203 of the Public Contract Code, a reduction in the retention may be requested by the Contractor for review and approval by the Engineer if the progress of the construction has been satisfactory, and the project is more than 50% complete. The Council hereby delegates its authority to reduce the retention to the Engineer. LIQUIDATED DAMAGES — EXTENSION OF TIME. In accordance with Government Code Section 53069.85, CONTRACTOR agrees to forfeit and pay to CITY the sum of one thousand dollars ($1,000.00) per day for each calendar day completion is delayed beyond the time allowed pursuant to Paragraph 4 of this Contract. Such sum shall be deducted from any payments due to or to become due to CONTRACTOR. Such sum shall be deducted from any payments due to or to become due to CONTRACTOR. CONTRACTOR will be granted an extension of time and will not be assessed liquidated damages for unforeseeable delays beyond the control of, and without the fault or negligence of, the CONTRACTOR including delays caused by CITY. CONTRACTOR is required to promptly notify CITY of any such delay. 8. WAIVER OF CLAIMS. On or before making each request for payment under Paragraph 6 above, CONTRACTOR shall submit to CITY, in writing, all claims for compensation as to work related to the payment. Unless the CONTRACTOR has disputed the amount of the payment, the acceptance by CONTRACTOR of each payment shall constitute a release of all claims against the CITY related to the payment. CONTRACTOR shall be required to execute an affidavit, release, and indemnity agreement with each claim for payment. 9. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contract, from the Director of the Department of Industrial Relations. These rates are available from the California Department of Industrial Relations's Internet Web Site at http://www.dir.ca.gov. CONTRACTOR shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum. CONTRACTOR shall comply with the provisions of Section 1773.8, 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code. CONTRACT C-3 RAdplpmjectslPW99-11 LSlagreementsloontrau Pursuant to the provisions of 1775 of the Labor Code, CONTRACTOR shall forfeit to the CITY, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work done under this Contract, by him or by any subcontractor under him, in violation of the provisions of the Contract. 10. TIME OF THE ESSENCE. Time is of the essence in this contract. 11. INDEMNIFICATION. All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR agrees to save, indemnify, hold harmless and defend CITY, its officers, employees, and agents, against any and all liability, injuries, or death of persons (CONTRACTOR's employees included) and damage to property, arising directly or indirectly out of the obligations herein undertaken or out of the operations conducted by CONTRACTOR, save and except claims or litigations arising through the sole active negligence or sole willful misconduct of the CITY. The CONTRACTOR shall indemnify and be responsible for reimbursing the CITY for any and all costs incurred by the CITY as a result of Stop Notices filed against the project. The CITY shall deduct such costs from Progress Payments or final payments due to the CITY. 12. GRATUITIES. CONTRACTOR warrants that neither it nor any of its employees, agents, or representatives has offered or given any gratuities or promises to CITY's employees, agents, or representatives with a view toward securing this Contract or securing favorable treatment with respect thereto. 13. CONFLICT OF INTEREST. CONTRACTOR warrants that he has no blood or marriage relationship, and that he is not in any way associated with any City officer or employee, or any architect, engineer, or other preparers of the Drawings and Specifications for this project. CONTRACTOR further warrants that no person in its employ has been employed by the CITY within one year of the date of the Notice Inviting Bids. 14. CONTRACTOR'S AFFIDAVIT. After the completion of the work contemplated by this Contract, CONTRACTOR shall file with the City Manager, its affidavit stating that all workmen and persons employed, all firms supplying materials, and all subcontractors upon the Project have been paid in full, and that there are no claims outstanding against the Project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been filed under the provisions of the laws of the State of California. 15. NOTICE TO CITY OF LABOR DISPUTES. Whenever CONTRACTOR has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, CONTRACTOR shall immediately give notice thereof, including all relevant information with respect thereto, to CITY. 16. BOOKS AND RECORDS. CONTRACTOR's books, records, and plans or such part thereof as may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and audit by any authorized representative of the CITY. CONTRACT C-4 R:1ciplprojects1PW99-11 LS1ag reementslcontraa 17. INSPECTION. The work shall be subject to inspection and testing by CITY and its authorized representatives during manufacture and construction and all other times and places, including without limitation, the plans of CONTRACTOR and any of its suppliers. CONTRACTOR shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the work. The work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the work. 18. DISCRIMINATION. CONTRACTOR represents that it has not, and agrees that it will not, discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex age, or handicap. 19. GOVERNING LAW. The City and Contractor understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Contract and also govern the interpretation of this Contract. Any litigation concerning this Contract shall take place in the municipal, superior, or federal district court with geographic jurisdiction over the City of Temecula. In the event of litigation between the parties concerning this Contract, the prevailing party as determined by the Court, shall be entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation. 20. PROHIBITED INTEREST. No member, officer, or employee of the City of Temecula or of a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during his/her tenure or for one year thereafter. Furthermore, the contractor/consultant covenants and agrees to their knowledge that no board member, officer or employee of the City of Temecula has any interest, whether contractual, non -contractual, financial or otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula, and that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all such information will be made, in writing, to the other party or parties, even if such interest would not be considered a conflict of interest under Article 4 (commencing with Section 1090) or Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the Government Code of the State of California. 21. ADA REQUIREMENTS. By signing this contract, Contractor certifies that the Contractor is in total compliance with the Americans with Disabilities Act of 1990, Public Law 101- 336, as amended. 22. WRITTEN NOTICE. Any written notice required to be given in any part of the Contract Documents shall be performed by depositing the same in the U.S. Mail, postage prepaid, directed to the address of the CONTRACTOR as set forth in the Contract Documents, and to the CITY addressed as follows: Mailing Address: William G. Hughes Director of Public Works/City Engineer City of Temecula P.O. Box 9033 Temecula, CA 92589-9033 Street Address: William G. Hughes Director of Public Works/City Engineer City of Temecula 43200 Business Park Drive Temecula, CA 92590-3606 CONTRACT C-5 RAdplprojectslPW99-17 LSlegreementftontracl IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed on the date first above written. DATED: DATED: CONTRACTOR American West Landscape, Inc. P.O. Box 1698 Bellflower, CA 90707-1698 (562) 803-6800 Duane Groen, President Humberto Raigoza, Vice President (Signatures of two corporate officers required for Corporations) APPROVED AS TO FORM: Peter M. Thorson, City Attorney ATTEST: Susan W. Jones, CMC, City Clerk CITY OF TEMECULA Michael S. Naggar, Mayor CONTRACT C-6 Rlcip1projeclslPW99-11 MagmementAcontract ITEM 6 APPROVAL CITY ATTORNEY Zvi DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: b1W William G. Hughes, Director of Public Works/City Engineer DATE: August 10, 2004 SUBJECT: Amendment No. 1 to Professional Services Agreement with Vali Cooper & Associates, Inc. for Inspection Services for Various CIP Projects PREPARED BY: Greg Butler, Principal Engineer David McBride, Senior Engineer RECOMMENDATION: That the City Council approve Amendment No. 1 to the Agreement with Vali Cooper & Associates, Inc. to provide professional inspection services, in an amount not to exceed $121,000.00, and authorize the Mayor to execute the agreement. BACKGROUND: The Capital Improvement Project (CIP) Division of the Public Works Department will be without one of its full-time inspectors as he serves our Country in Iraq for seven months. The Division currently has 2.5 full-time equivalents budgeted for CIP inspection and with the current workload the inspectors have been challenged to keep up. In order to fill the gap of the temporary staffing shortage, staff requested proposals from four (4) different firms with extensive experience in inspection services. Three (3) firms responded to the proposal and one of the firms has previously performed work for the City. Staff rated Vali Cooper & Associates, Inc. as the firm providing the most qualified and cost effective proposal. The original Agreement with Vali Cooper, in the amount of $24,000.00, was administratively approved in order to ensure adequate inspection was provided before Council's consideration of this Amendment. FISCAL IMPACT: Inspection services are funded in the administrative (5801) portion of various CIP Projects. The amount of the original inspection Agreementwas $24,000.00. Amendment No.1 is for an amount not to exceed $121,000.00 to cover the entire known term of the staff shortage. The total cost of the original Agreement and Amendment No. 1 is $145,000.00. Adequate funds have been identified in the following projects: Project / Account # Winchester Widening @ Jefferson (210.165.608.5801) 2. Pechanga Pkwy Storm Drain and Channel (210.165.668.5801) Amount $40,000.00 $70,000.00 r:\Agenda Report\2004\081004\Vali Cooper Amend 1 Pauba Road Improvements (210.165.606.5801) $10,000.00 Jefferson Avenue Pavement Rehabilitation (210.165.621.5801) $ 25,000.00 Total $145,000.00 ATTACHMENTS: 1. Amendment No. 1 2. Agreement rAAgenda Report\2004\081004\Vali Cooper Amend 1 FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND VALI COOPER & ASSOCIATES, INC. INSPECTION SERVICES FOR VARIOUS CAPITAL IMPROVEMENT PROJECTS THIS FIRST AMENDMENT is made and entered into as of August 10, 2004 by and between the City of Temecula, a municipal corporation ("City") and Vali Cooper & Associates, Inc. ("Consultant'). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. This Amendment is made with respect to the following facts and purposes: A. On July 22, 2004 the City and Consultant entered into that certain agreement entitled "City of Temecula Agreement for professional inspection services ("Agreement') in the amount of Twenty Four Thousand Dollars and No Cents ($24,000.00) ("Agreement'). B. The parties now desire to amend the Agreement as set forth in this Amendment. 2. Section 5 of the Agreement is hereby amended to read as follows: PAYMENT a. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit A, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. The First Amendment amount shall not exceed One Hundred Twenty One Thousand Dollars and No Cents ($121,000.00) for additional inspection services. The maximum amount of payment under this Agreement shall not exceed the total Agreement amount of One Hundred and Forty Five Thousand Dollars and No Cents ($145,000.00) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. 3. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. r\agreements\CIP Misc AgreementsNah Cooper Amendment 1 CITY OF TEMECULA Michael S. Nagger, Mayor ATTEST: Susan W. Jones, CMC, City Clerk Approved As to Form: Peter M. Thorson, City Attorney CONSULTANT Vali Cooper & Associates, Inc. Agnes Weber, Executive Vice President 41 Washington Avenue Point Richmond, CA 92501 (510) 788-6028 Regional Office 3900 Market Street, Suite 250 Riverside, CA 92501 (909) 788-6028 By: e Agnes eber, Exec ive Vice President i.11 I POW iI (Two Signatures Required For Corporations) C:100CUME-NWWEBER-1.PTRVAGALS-1\Temp120040722 Veli Ame,MmeM 1AW ITEM 7 CITYATTORNEY DIRECTOR OF FI CITY MANAGER CITY OF TEMECULA AGENDA REPORT W TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: August 10, 2004 SUBJECT: Completion and Acceptance of the Slurry Seal Project — FY 2003/2004 Project No. PW04-03 PREPARED BY: Amer Attar, Principal Engineer Avlin R. Odviar, Assistant Engineer RECOMMENDATION: That the City Council: Accept the construction of the Slurry Seal Project— FY 2003/2004, Project No. PW04-03, as complete and; 2. Direct the City Clerk to 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; and; 3. Release the Materials and Labor Bond seven months after the filing of the Notice of Completion if no liens have been filed. BACKGROUND: On April 13, 2004, the CityCouncil awarded a construction contact for Project No. PW04-03, Slurry Seal Project — FY 2003/2004, to American Asphalt South, Inc. of Fontana, California in the amount of $515,669.89.00. Under this project, various streets were cleaned, crack -filled, capped with Rubberized Emulsion — Asphalt Slurry (REAS), and re -striped. 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, and all work will have a warrantyfor a period of one year from the date of acceptance by the City. The final contract amount including all contract change orders is $560,140.63. The construction retention for this project will be released on or about thirty-five (35)days after the Notice of Completion has been recorded. FISCAL IMPACT: The Slurry Seal Project— FY 2003/2004, Project No. PW04-03 is funded by the Public Works Department Maintenance Division FY 2003-2004 Budget for Routine Street Maintenance, Account No. 001-164-601-5402. The base amount of the contract was $515,669.89. Four contract change orders were issued for a total of $45,440.50, and the total quantity for bid item 5 was not needed, which corresponds to a reduction of $969.76. The final contract amount is $560,140.63. UAGENDA REP0RTS\20D4\081004\PW04-03 ACCEPTANCE.DOC ATTACHMENTS: 1. Notice of Completion 2. Maintenance Bond 3. Contractor's Affidavit R:\AGENDA REPORTS\2004\081004\PW04-03 ACCEPTANCE.DOC 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 American Asphalt South, Inc., P.O. Box 3610, Fontana, California 92334 to perform the following work of improvement: SLURRY SEAL PROJECT — FY03-04 Project No. PW04-03 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 August 10, 2004. That upon said contract the International Fidelity Insurance 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: Slurry Seal Project — FY03-04 Project No. PW04-03 6. The location of said property is: Various Streets, Temecula, California Dated at Temecula, California, this 10th day of August, 2004 City of Temecula STATE OF CALIFORNIA Susan W. Jones CMC, City Clerk ) COUNTY OF RIVERSIDE ) ss CITY OFTEMECULA ) 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 10th day of August, 2004. City of Temecula Susan W. Jones CMC, City Clerk RACIRPR0JECTS1PW041PW04-03 Slurry Seal Pmj F 03-04MMERICANASPHALTTCOMPLE ION NOTEAW 11 II CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT MAINTENANCE BOND Bond No. 0377432 FOR PROJECT NO. PW04-03 SLURRY SEAL PROJECT - FY 200312004 KNOW ALL PERSONS BY THESE PRESENT THAT. South. Inc. a Corporation , hereinafter called Principal, and (flllmwhethere Corporellon, Partrrerahlp orindrvidual) International Fidelity Insurance Company, 1575 Treat Blvd., #208, Walnut Creek, NAME AND ADDRESS OF SURETY CA 94596 hereinafter called SURETY, are held and firmly bound unto CITY OF TEMECULA, hereinafter called OWNER, in the penal SUM of Five Hundred Sixty Thousan ($ 560,140.63 ) In lawful money of the United States, Bald sum being not less than ten (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 13th day of April , 2004, a copy of which is hereto attached and made a part hereof for the construction of PROJECT NO. PW04- 03, SLURRY SEAL PROJECT - FY 200312004. WHEREAS, said Contract provides that the Principal will furnish a bond conditioned to guarantee for the period of one (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 _ July 3 ,2004. 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. 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 Temecula in successfully enforcing this obligation, all to. be taxed as costs and included in any judgment rendered. MB-t 17lw'pq� shM SW PM r503004poWMW-$p X&A 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 waive 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 loth day of July , 2004. (Seal) SURETY Fidelity Insurance Company By: 46.v. rA 4U6 James Shea (Name) Attorney in Fact (title) APPROVED AS TO FORM, Peter M. Thorson, City Attorney PRINCIPAL American Asphalt South, Inc. By: Lv/ 544e (Name) f�rr (Trite) ' M (Name) (nue) i I MArtfr NANCEBOND MB•2 n+aevRaEctsrr+onrt+oaasomseaAa�-=P°f'6X `let (973) 624-7200 POWER OF ATTORNEY INTERNATIONAL FIDELITY INSURANCE COMPANY HOME OFFICE: ONE NEWARK CENTER, 20TH FLOOR NEWARK, NEW JERSEY 07102-5207'' KNOW ALL MEN BY, THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing laws of the State of New Jersey, and having: its principal office in the City of Newark; New Jersey; does hereby constitute and appoint R.A. BABE, JAMES B. OHBA,'_TRERESE A. MCNOLTY, JOHN J. CABBY its true and lawful anorney(s)-in-fact to execute, seal and deliver for and on its behalf as surety,, any and all bonds and undertakings, contracts of indemnity other writings obligatory, m the nature thereof, which are or may be allowed, required or rmttted Taw, statute rule reggulation, contract or otherwise, the execution of such instrument(s) in. pursuance of these presents, shall be as bin upon the said INTERNATIONAL FIDELITY INSURA4 COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers t principal office. This Power of Attorney is executed, and may be revoked pursuant to and by authority of Article 3-Section 3, of the %Laws adoppted by the Board of Directors of INTERNATIONAL FIDELITY BVSURANCB COMPANY at a meeting called and held on the 7th day of February, 1974. The President or any Vice President, Executive Vice President, Secretary or Assistant Secretary, shall have power and authority i 1) To appoint Attorneys -in -fact, and to authorize them to execute on behalf of the Company, and attach the Seal of the Company thereto, bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof and, (2) To remove, at any time, any such attorney -in -fact and revoke the authority given. Further, this Power of Attorney is sl tied and sealed byy facsimile pursuant to resolution of the Board of Directors of said Company adopted at a meeting duly called and held on the 29th day ofgApril, 1982 of wFtich the following is a true excerpt: Now therefore the signatures of such officers and the seal of the Company may be affixed to any such power of attorney or any certificate relating thereto by facsimile, and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding uppoon the Company and any such power so executed and certified by facsimile signatures and facsimile seal shall be valid and binding upon the Company in the Tntlure with respect to any bond or undertaking to which it is attached. IN TESTIMONY WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY has caused this instrument to be signed and its corporate seal to be affixed by its authorized officer, this 3tat day of August, A.D. 1998. INTERNATIONAL FIDELITY INSURANCE COAPI STATE NEW JERSEY County off Essex Vice- dem On this 31st day of August 1998, before me a swom;.said the he is the therein described and auth said instrument is the Corporate Seal of said Com, mid Company. iithe CityTESTIMONY f NG 0 and who of CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California SS. County of San Francisco On July 20, 2004____, before me, Lillian Tse, Notary Public Dale Name adl Tine od ORre, (e a. 'Jane Doe. Nolen PuW ) — personally appeared James B. Shea Nana(:i d arenan:i LILLIAN TSE o COMM. #1455274 U o NOTARY PUBLIC-CALIFORNIA a SAN FRANCISCO COUNTY My Comm. Expires Dec. 9, 2007 V personally known to me i 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/herttheir 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. %eco Notary Seal Above lure o Diary PUNK 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 Title or Type of Document: Maintenance Bond Document Date: July 20, 2004 _____ Number of Pages: three (3) ____. Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer Signer's Name: Ei Individual O Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General V Attorney in Fact El Trustee 0 Guardian or Conservator ❑ Other: Signer Is Representing: International Fidelity Insurance Company RIGHT THDM6PRINT OF J GN[R *$M Nan Ndary Aaex —9WOe SUOAw..PO.ft. 1a02•CNlswmR CA 9t313Ta0Y•rewrelbnaPnwryd9 Pm Na. 5007 Rw :Cae TWIW 1.0 76E 7 0 i1 CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT CONTRACTOR'S AFFIDAVIT AND FINAL RELEASE PROJECT NO. PW04-03 SLURRY SEAL PROJECT - FY 200312004 This is to certify thatfMrrt[w "// 0vnt .4 (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. PW04-03, SLURRY SEAL PROJECT - FY 2003/2004, situated in the City of Temecula, State of California, more particularly described as follows: 1* erl - 4-y omalo any INSERT ADDRESS OR DESCRIBE LOCATION OF WORK I 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: ,i 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. Dated:T CONTRACTOR By: SW15ture yle ,%OHS 5ern-�k, —Prinf Nams and Title RELEASE R-1 =RFRaecrswwaewWW Skuy Seal Pmi PrmaftPeMwwam_SP=,M ITEM 8 APPROVAL CITYATTORNEY 1 DIRECTOR OF FINAN CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: August 10, 2004 SUBJECT: Joint Funding of Murrieta Creek Flood Control, Environmental Restoration and Recreation Project PREPARED BY: viry Ronald J. Parks, Deputy Director of Public Works RECOMMENDATION: That the City Council approve the Joint Funding Agreement with the Riverside County Flood Control and the City of Murrieta for the Murrieta Creek Flood Control, Environmental Restoration and Recreation Project, and authorize the Mayor to execute the agreement. The estimated commitment from the City of Temecula is approximately $11,000,000 of cash and/or in -kind Project contributions and improvements over the next 5 to 8 years. BACKGROUND: The Riverside County Flood Control and Water Conservation District (District) has been working with the US Army Corp of Engineers (USACOE) as the Local Sponsor for the Murrieta Creek Flood Control, Environmental Restoration and Recreation Project (Project). The recitals in the attached Agreement identify the Federal authorization for the project at a projected total cost of $90,866,000, with an estimated Federal contribution of $59,063,900 and an estimated non-federal cost of $31,803,100. In accordance with USACOE cost sharing policy and guidelines, it is anticipated that USACOE will only contribute approximately $49,666,000 of Project's construction cost. The remaining project construction costs of approximately $41,200,000 are to be borne by the District and Cities (Local Share). The District and the Cities of Temecula and Murrieta have pledged to contribute cash and/orfumish in -kind PROJECT contributions and improvements necessary to accomplish Project construction. As set forth in this Agreement, Cities each agree to furnish contributions in an amount equal to 25% (twenty five percent) of the Local Share exclusive of Project's recreation elements, and District agrees to fund the remaining 50% (fifty percent) of Local Share exclusive of Project's recreation element. The following Section outlines the City of Temecula's commitment to this Project: "Temecula shall: 1. Furnish Project Contributions in the amount of twenty-five percent (25%) of Local Share exclusive of Recreational Elements and fifty percent (50%) of Local Share for Recreational Elements, hereinafter called "Temecula's Share". r:\agdrpt\2004\0810\Murrieta Creek Joint Agrmt 2. Continue to actively pursue local efforts to secure all such non-federal funding necessary to accomplish Project construction. 3. Keep an accurate accounting of Project Contributions and submit quarterly statements to District itemizing Project Contributions furnished. 4. Pay one hundred percent (100%) of the cost of all Betterments as may be requested in writing by Temecula. 5. As requested by District, order the relocation of all utilities installed by permit or franchise within city rights of way which conflict with the construction of Project and which must be relocated at the utility company's expense. Within its respective jurisdiction, accept sole responsibility for the ownership, operation and maintenance o f a ny B ridges i ncluding b ut n of I imited t o m afters o f s tructural integrity, roadway condition, public safety and graffiti removal. Within its respective jurisdiction, accept sole responsibility for operation and maintenance of Project Recreation Elements including but not limited to, repairing and/or replacing pathways, access roads, landscape maintenance and the routine removal of accumulated litter, trash and debris associated with public's use of Project right of way, upon completion of each Phase of Project construction and transfer of Project maintenance responsibilities from USACOE to District in accordance with the PCA. It being further understood and agreed by the parties hereto that Temecula's responsibilities for operation and maintenance of Park Site shall be in accordance with separate agreement(s) between the District and Murrieta." FISCAL IMPACT: Estimated commitment of $11,000,000 will be funded through the Capital Improvement Budget throughout the life of the Murrieta Creek Project. Projects such as the Main Street Bridge Replacement Project ($4 Million through HBRR Grant), the Murrieta Creek Trail Project ($1.2 Million TEA Grant), Murrieta Creek right-of-way taking ($161,500), Wolf Creek Sports Park import ($125,000) will be counted as in -kind contributions and deducted from the $11,000,000 commitment. Additional right-of-way in Old Town Temecula will be appraised and the contribution will be counted as in -kind towards the Project. Funds will be allocated through the CIP Budget over the next 5 to 8 years to cover the balance of the cities commitment for this project. ATTACHMENTS: Agreement (Joint Funding of Murrieta Creek Flood Control, Environmental Restoration and Recreation Project) rAagdrpt\2004\0810\Murriete Creek Joint Agnnt 78994.6 AGREEMENT (JOINT FUNDING OF MURRIETA CREEK FLOOD CONTROL, ENVIRONMENTAL RESTORATION AND RECREATION PROJECT) The RIVERSIDE COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT, hereinafter called "DISTRICT", the CITY OF MURRIETA, hereinafter called "MURRIETA", and the CITY OF TEMECULA, hereinafter called "TEMECULA", hereby agree as follows: RECITALS A. In January 1993, the Cities of Murrieta and Temecula, together hereinafter called "CITIES", experienced approximately $11,000,000 worth of flood damage to public and private property as a result of flooding along Murrieta Creek located in southwest Riverside County; and B. On October 7, 2000, President Clinton signed the Energy and Water Appropriations Act of 2001 (Public Law 106-377); and C. Public Law 106-377 includes House Report 5483 which authorized the Locally Preferred Plan (LLP) of the United States Army Corps of Engineers (USACOE) Murrieta Creek Flood Control, Environmental Restoration and Recreation Project, hereinafter called "PROJECT" at a projected total cost of $90,866,000, with an estimated Federal contribution of $59,063,900 and an estimated non-federal cost of $31,803,100; and D. Pursuant to the appropriation of PROJECT funds by Congress and in accordance with USACOE cost sharing policy and guidelines, it is anticipated that USACOE will contribute approximately $49,666,000 of PROJECT'S construction cost, hereinafter called "FEDERAL SHARE". The remaining PROJECT construction costs of approximately $41,200,000 are to be borne by DISTRICT and CITIES as set forth herein; and E. The PROJECT will provide significantly improved flood protection to properties located within and adjacent to the Murrieta Creek flood plain and significantly enhance aquatic habitat and recreational opportunities in Southwest Riverside County; and F. USACOE anticipates accomplishing PROJECT construction in four phases as follows: PHASE 1 — Consisting of a green -belt channel starting near the USGS gauging station located downstream of Old Town Temecula and extending approximately 3,000 feet upstream to First Street (construction started in FY 2003); PHASE 2 — Consisting of a green -belt channel starting at First Street in Old Town Temecula and extending approximately 15,000 feet upstream to Winchester Road, scheduled to commence construction in FY 2005; 78994.6 PHASE 3 — Consisting of a 250 acre stormwater detention basin, hereinafter called "BASIN", located near the confluence of Santa Gertrudis, Warm Springs and Murrieta Creeks, scheduled to commence construction in FY 2007. Included within BASIN is an approximately 50 acre park and recreation site, hereinafter called "PARK SITE"; and PHASE 4 - Consisting of a green -belt channel starting from BASIN and extending approximately 19,000 feet upstream to Tenaja Road in the City of Murrieta, scheduled to commence construction in FY 2008. G. Included within the scope of PROJECT are three bridges to be constructed at Main Street (Temecula) and Guava and Ivy (Murrieta), and hereinafter collectively called "BRIDGES". Also included within the scope of PROJECT are a bike trail, an equestrian trail and PARK SITE, hereinafter called "RECREATION ELEMENTS". H. DISTRICT is continuing to work vigorously to obtain the full measure of available Federal funding for entire PROJECT; and I. DISTRICT and CITIES are continuing to work cooperatively to identify potential funding sources and secure funding to meet PROJECT'S non-federal cost obligation, hereinafter called "LOCAL SHARE", including engineering design, right of way acquisition and construction; and J. In Federal FY 2001, USACOE received an initial appropriation of $748,000 to begin detailed engineering design of PHASE 1. In Federal FY 2002, USACOE received an additional appropriation of $755,000 to continue detailed engineering design of PHASE 1. In Federal FY 2003, USACOE received an initial appropriation of $1,069,000 to initiate construction of PHASE 1; and K. USACOE, in accordance with the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA), has prepared an Environmental Impact Statement / Environmental Impact Report (EIS/EIR). DISTRICT, acting as Lead Agency pursuant to CEQA, has circulated the Environmental Impact Report (EIR) identifying the PROJECT'S environmental impacts and mitigation measures and DISTRICT'S Board of Supervisors adopted Resolution F2003-01 on January 28, 2003, approving the EIR. Additionally, DISTRICT, working in conjunction with USACOE, is willing to secure all regulatory permits necessary to construct PROJECT; and L. DISTRICT has entered into a Project Cooperation Agreement, hereinafter called "PCA", with USACOE setting forth DISTRICT'S responsibilities as PROJECT'S Local Sponsor in accordance with USACOE rules and regulations. Additionally, DISTRICT is willing to secure all rights of way and accomplish all utility relocations necessary to construct project; and M. DISTRICT and CITIES have pledged to contribute cash and/or furnish in -kind PROJECT contributions and improvements, hereinafter called "CONTRIBUTIONS", necessary to accomplish PROJECT construction. As set forth herein, CITIES each agree to furnish CONTRIBUTIONS in an amount equal to 25% (twenty five percent) of LOCAL SHARE exclusive of PROJECT'S RECREATION 78994.6 ELEMENTS, and DISTRICT herein agrees to fund the remaining 50% (fifty percent) of LOCAL SHARE exclusive of RECREATION ELEMENTS; and N. As provided herein, CITIES are willing to share equally all costs associated with the construction of RECREATION ELEMENTS that are not otherwise funded by USACOE and, within their respective jurisdictions, accept responsibility for operation and maintenance of said RECREATION ELEMENTS. It being further understood and agreed that each parties' respective responsibilities for operation and maintenance of RECREATION ELEMENTS and PARK SITE are to be formally established pursuant to separate agreement(s) between CITIES and DISTRICT; and O. DISTRICT and CITIES may request that USACOE incorporate additional work or PROJECT amenities, including but not limited to supplemental landscaping, recreational amenities or bridge enhancements, etc., not otherwise included within the scope of USACOE'S funding for PROJECT. DISTRICT and CITIES understand and agree that such additional work or PROJECT amenities, hereinafter called "BETTERMENTS", shall be funded solely by the requesting party except as the other parties hereto may otherwise agree in writing. All requests for BETTERMENTS shall be submitted to USACOE in writing as set forth herein; and P. It is in the community interest to complete PROJECT design and construction in the most expeditious manner possible. NOW, THEREFORE, it is mutually agreed as follows: SECTION I DISTRICT shall: 1. Contribute PROJECT funding in the amount of fifty percent (50%) of LOCAL SHARE exclusive of PROJECT'S RECREATION ELEMENTS, hereinafter called "DISTRICT'S SHARE". 2. Continue to work closely with CITIES on all matters pertaining to PROJECT'S financing, design and construction. 3. Pursuant to the executed PCA, continue to serve as PROJECT'S Local Sponsor and act as liaison with USACOE for PROJECT. 4. Continue to actively pursue and coordinate efforts to secure both federal and non-federal funding necessary to accomplish, in a timely manner, the construction of PROJECT in its entirety. 5. Keep an accurate accounting of all PROJECT costs and DISTRICT and CITIES' CONTRIBUTIONS to PROJECT. Furnish CITIES with a quarterly statement itemizing PROJECT costs incurred, PROJECT CONTRIBUTIONS received, PROJECT milestones achieved and anticipated PROJECT costs. 6. Serve as the conduit for transmitting CITIES' CONTRIBUTIONS to USACOE. 7. Working in conjunction with USACOE, secure or cause to be secured all regulatory permits necessary to construct, operate and maintain PROJECT. 78994.6 8. Secure all necessary rights of way for PROJECT'S construction, operation and maintenance. 9. Relocate all utilities as necessary to construct PROJECT that otherwise cannot be ordered by CITIES at the request of DISTRICT. 10. Upon completion of each PHASE of PROJECT construction and the subsequent transfer of PROJECT maintenance responsibilities from USACOE to DISTRICT as set forth in the PCA, accept sole responsibility for operation and maintenance of PROJECT, but excluding therefrom the PROJECT'S BRIDGES and RECREATION ELEMENTS. In connection with its maintenance of PROJECT as described herein, DISTRICT shall be solely responsibility for maintaining PROJECT'S design lines and grades, flood conveyance and flood capacity. it. Pursuant to separate license agreements, grant CITIES the necessary rights to operate and maintain PROJECT'S RECREATION ELEMENTS located within DISTRICT right of way. SECTION II MURRIETA shall: 1. Furnish PROJECT CONTRIBUTIONS in the amount of twenty-five percent (25%) of LOCAL SHARE exclusive of RECREATION ELEMENTS and fifty percent (50%) of LOCAL SHARE for RECREATIONAL ELEMENTS, hereinafter called "MURRIETA'S SHARE". 2. Continue to actively pursue local efforts to secure all such non-federal funding necessary to accomplish PROJECT construction. 3. Keep an accurate accounting of PROJECT CONTRIBUTIONS and submit quarterly statements to DISTRICT itemizing PROJECT CONTRIBUTIONS furnished. 4. Pay one hundred percent (100%) of the cost of all BETTERMENTS as may be requested in writing by MURRIETA. 5. As requested by DISTRICT, order the relocation of all utilities installed by permit or franchise within city rights of way which conflict with the construction of PROJECT and which must be relocated at the utility company's expense. 6. Within its respective jurisdiction, accept sole responsibility for the ownership, operation of any BRIDGES including but not limited to matters of structural integrity, roadway condition, public safety and graffiti removal. 7. Within its respective jurisdiction, accept sole responsibility for operation and maintenance of PROJECT'S RECREATION ELEMENTS including but not limited to, repairing and/or replacing pathways, access roads, landscape maintenance and the routine removal of accumulated litter, trash and debris associated with public's use of PROJECT right of way, upon completion of each PHASE of PROJECT construction and transfer of PROJECT maintenance responsibilities from USACOE to DISTRICT in accordance with the PCA. It being further understood and agreed by the parties hereto that 78994.6 MURRIETA'S responsibilities for operation and maintenance of PARK SITE shall be in accordance with separate agreement(s) between the DISTRICT and TEMECULA. SECTION III TEMECULA shall: 1. Furnish PROJECT CONTRIBUTIONS in the amount of twenty-five percent (25%) of LOCAL SHARE exclusive of RECREATION ELEMENTS and fifty percent (50%) of LOCAL SHARE for RECREATIONAL ELEMENTS, hereinafter called "TEMECULA'S SHARE". 2. Continue to actively pursue local efforts to secure all such non-federal funding necessary to accomplish PROJECT construction. 3. Keep an accurate accounting of PROJECT CONTRIBUTIONS and submit quarterly statements to DISTRICT itemizing PROJECT CONTRIBUTIONS furnished. 4. Pay one hundred percent (100%) of the cost of all BETTERMENTS as may be requested in writing by TEMECULA. 5. As requested by DISTRICT, order the relocation of all utilities installed by permit or franchise within city rights of way which conflict with the construction of PROJECT and which must be relocated at the utility company's expense. 6. Within its respective jurisdiction, accept sole responsibility for the ownership, operation and maintenance of any BRIDGES including but not limited to matters of structural integrity, roadway condition, public safety and graffiti removal. 7. Within its respective jurisdiction, accept sole responsibility for operation and maintenance of PROJECT'S RECREATION ELEMENTS including but not limited to, repairing and/or replacing pathways, access roads, landscape maintenance and the routine removal of accumulated litter, trash and debris associated with public's use of PROJECT right of way, upon completion of each PHASE of PROJECT construction and transfer of PROJECT maintenance responsibilities from USACOE to DISTRICT in accordance with the PCA. It being further understood and agreed by the parties hereto that TEMECULA'S responsibilities for operation and maintenance of PARK SITE shall be in accordance with separate agreement(s) between the DISTRICT and MURRIETA. SECTION IV IT IS FURTHER MUTUALLY AGREED: 1. CITIES' personnel are encouraged to actively participate in all matters pertaining to PROJECT'S funding, design and construction, but shall transmit all comments pertaining thereto to DISTRICT personnel who, as the PROJECT'S Local Sponsor, shall be solely responsible for all communications with USACOE. 78994.6 2. Credit for PROJECT rights of way fumished by CITIES shall be established on the basis of an independent appraisal performed by a qualified real estate appraisal firm retained by DISTRICT. 3. Credit for PROJECT improvements furnished by CITIES shall be established on the basis of actual costs incurred. CITIES shall be responsible for providing DISTRICT with documentation of actual costs incurred in the form of an executed contract, payment vouchers or other appropriate supporting documents. 4. All requests for BETTERMENTS shall be submitted through DISTRICT to USACOE in writing. All BETTERMENTS shall be funded solely by the requesting party except as the other parties hereto may otherwise agree in writing. 5. In the event DISTRICT receives reimbursement funding from the State Flood Control Subvention Program for PROJECT, each CITY shall receive twenty-five percent (25%) of any such reimbursement(s) received. 6. Within PROJECT'S right of way, CITIES shall not construct any structures or improvements or cause any changes to or modifications of PROJECT without DISTRICT'S prior written permission and consent. 7. Within PROJECT right of way, or as otherwise associated with this Agreement, CITIES shall indemnify and hold DISTRICT and County of Riverside, their officers, agents, employees and independent contractors free and harmless from any liability whatsoever, based or asserted upon any act or omission of DISTRICT or County of Riverside, its officers, agents, employees, subcontractors, independent contractors, guests and invitees for property damage, bodily injury or death or any other element of damage of any kind or nature, including but not limited to any action concerning this Agreement or related to or in any manner connected with or arising from public's use of PROJECT right of way to provide recreational amenities and the public's use associated therewith, or CITIES' responsibilities in connection therewith or the condition thereof, and CITIES shall defend, at its own expense, including reasonable attorneys' fees, DISTRICT and County of Riverside, their officers, agents, employees and independent contractors, in any legal action based upon such alleged acts or omissions. 8. Each party, as to any and all loss, damage, claim for damage, liability, expense or cost, including attorneys' fees, which arises out of such party's (including its employees, contractors, subcontractors or agents) act or omission regarding any work to be performed by or authority delegated to such party under this Agreement, shall defend, indemnify and hold harmless the other party and its officers and employees, except as to sole negligence or willful misconduct of the other party. 9. Any notices sent or required to be sent to any party shall be mailed to the following addresses: RIVERSIDE COUNTY FLOOD CONTROL CITY OF TEMECULA AND WATER CONSERVATION DISTRICT 43200 Business Park Drive 1995 Market Street Temecula, CA 92589-9033 Riverside, CA 92501 Attn: 78994.6 CITY OF MURRIETA 26442 Beckman Court Murrieta, CA 92562 Attn: 10. This Agreement is to be construed in accordance with the laws of the State of California. 11. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall be declared severable and shall be given full force and effect to the extent possible. 12. Any action at law or in equity brought by any of the parties hereto for the purpose of enforcing a right or rights provided for by the Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the parties hereto waive all provisions of law providing for change of venue in such proceedings to any other county. 13. This Agreement is the result of negotiations between the parties hereto and with the advice and assistance of their respective counsel. No provision contained herein shall be construed against DISTRICT solely because, as a matter of convenience, it prepared this Agreement in final form. 14. Any waiver by DISTRICT or CITIES of any breach by the other of any one or more of the terms of this Agreement shall not be construed to be a waiver of any subsequent or other breach of the same or of any other term hereof. Failure on the part of DISTRICT or CITIES to require from the other exact, full and complete compliance with any terms of the Agreement shall not be construed as in any manner changing the terms hereof, or stopping DISTRICT or CITIES from enforcement hereof. 15. This Agreement may be executed and delivered in any number of counterparts or copies, hereinafter called "COUNTERPART", by the parties hereto. When each party has signed and delivered at least one COUNTERPART to the other parties hereto, each COUNTERPART shall be deemed an original and, taken together, shall constitute one and the same Agreement, which shall be binding and effective as to the parties hereto. 16. This Agreement is intended by the parties hereto as their final expression with respect to the matters herein, and is a complete and exclusive statement of the terms and conditions thereof. This Agreement shall not be changed or modified except by the written consent of both parties hereto. H H 78994.6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on (to be filled in by Clerk to the Board) RIVERSIDE COUNTY FLOOD CONTROL RECOMMENDED FOR APPROVAL: AND WATER CONSERVATION DISTRICT By By WARREN D. WILLIAMS JAMES A. VENABLE, Chairman General Manager -Chief Engineer Riverside County Flood Control and Water Conservation District Board of Supervisors APPROVED AS TO FORM: ATTEST: WILLIAM C. KATZENSTEIN NANCY ROMERO County Counsel Clerk to the Board By By FRANK C. ALDRICH III Deputy County Counsel Dated (SEAL) MHW:bj Cooperative Agreement: Murrieta Creek Flood Control, Environmental Restoration and Recreation Project 78994.6 RECOMMENDED FOR APPROVAL: By BILL HUGHES Public Works Director CITY OF TEMECULA Im MICHAEL S. NAGGAR, Mayor City of Temecula ATTEST: SUSAN W. JONES, CMC City Clerk UZ (SEAL) Cooperative Agreement: Murrieta Creek Flood Control, Environmental Restoration and Recreation Project MHW:bj 78994.6 FOR APPROVAL: By KEN SEUMALO Acting Engineering Manager CITY OF MURRIETA By STEPHEN MANDOKI, City Manager City of Murrieta City Clerk By RITA THOMPSON (SEAL) Cooperative Agreement: Murrieta Creek Flood Control, Environmental Restoration and Recreation Project ITEM 9 APPROVAL CITYATTORNEY Zl�� �� DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: �W William G. Hughes, Director of Public Works/City Engineer DATE: August 10, 2004 SUBJECT: Parcel Map 31639, Located at the North West Corner of North General Kearny Road and Margarita Road PREPARED BY: WRonald J. Parks, Deputy Director of Public Works Gerald L. Alegria, Senior Engineer— Land Development RECOMMENDATION: That the City Council approve 1) Parcel Map No. 31639 in conformance with the Conditions of Approval, and 2) Subdivision Monument Agreement and accept the Monument Bond as security for the agreement. BACKGROUND: Parcel Map No. 31639 is a six (6) parcel subdivision located at the north west corner of North General Kearny Road and Margarita Road. The map contains 6 commercial parcels. The street improvements associated with this map are in place; the North General Kearny Road improvements were completed as part of the Promenade Mall development and the improvements to Margarita Road were completed as part of the City's Capital Improvement Projects. The survey monuments are required to be set. On February 12, 2004, the Planning director for the City of Temecula approved Tentative Parcel Map No. 31639, with the appropriate Conditions of Approval. This final map is in conformance with the approved tentative map. The approval of a final subdivision map, which substantially complies with the previously approved tentative map is a mandatory ministerial act under State Law. FISCAL IMPACT: None ATTACHMENTS: 1. Development Fee Checklist 2. Fees & Securities Report 3. Project Vicinity Map 4. Parcel Map 31639 r:\agd rpt\2004\081 0\pm31 639. map CITY OF TEMECULA DEVELOPMENT FEE CHECKLIST CASE NO. PM 31639 Staff reviewed the following fees relative to their applicability to this project. FEE Flood Control (ADP) CONDITIONS OF APPROVAL Paid Development Impact Fee Paid rAagdrpt\2004\0810\pm31639.map CITY OF TEMECULA ENGINEERING DEPARTMENT FEES AND SECURITIES REPORT PARCEL MAP 31639 DATE: Auaust 10. 2004 IMPROVEMENTS FAITHFUL PERFORMANCE SECURITY MATERIAL & LABOR SECURITY Street and Drainage $ 0 $ 0 Water $ 0 $ 0 Sewer $ 0 $ 0 TOTAL $ 0 $ 0 Monument $ 9,000.00 DEVELOPMENT FEES City Traffic Signing and Striping Costs RCFCD (ADP) Fee Development Impact Fee SERVICE FEES Planning Fee Comprehensive Transportation Plan Plan Check Fee Monument Inspection Fee Fees Paid to Date Balance of Fees Due $ 0.00 $ Paid $ Paid $ 60.00 $ 4.00 $ 1,070.00 $ 450.00 $ 1,584.00 $ 0.00 3 r:tagdrpt\2004\0810\pm31639. map L Z 0 Li J a u cn 0 F-- 0 z 3 b 30 IV SIR lip Sol • � qq b" b ��� � Ga_ NN . g axe PER Q J Eq b gs t� e�a` �ab� Wb_ _x "_`� q 'Hug, 1 a p b a a"gip Gs -a: i y qg _BV W 4H ;15 y egpyBs�® nr !SINE 4g g 4 � $ p� � € W'a�g— � N � Ws � •���be € �b �Rea��q _gB� � � � l "�@g@aa�� 9. se •n ,r', w/ee/, eo ,.x swazaoras<r\oxie<rn\oav�\s[roo,s[\r[voa\:u €' `g ht - a Na k Y� n g S g^ q-� 7a kb`a rjA3 4Y4 �41 n $b S Z a RH WEN its Sib a 0 0 0 (c)y bbt E°5RsfJRxrj6g_'Rp .1bg ��_6 Y p$$pp5 gE @�SSSY 4 @4 8$ @. $�. dp SIgI"•g�giglggil Bd b4 4v II e gR R II �z 63° g3° g RR^eog8?8^aa:, 70 3_ $ F gg$ � 1 p Eap�gp fee $e4 pi k 7$_$RR$�$�g� Z NI, :R i �Qp tl� P!_ iq FF kill PORvyn.noreo___- _ tS R�pp€ B�5 A.R n 4W • x 5 G 5! 5.3 ��� 5^ 3 3— 3 5'�, 3 5 a, f n < � o gY 8F° 8:8 $ 1� 2 8 i $l_ €€_ 8a 8 8 Ra Q`p o 0 0o 0 0 0© o 0 000O ^; < ggpp How g b — oAb V1IW.W�R � M ' 9 4 o�x EL �m Y 6 $ mLLI - -- 1�' 5r e °g6¢ N � � e7A s 9 4 �P g1 8 P Q. — a:s WWI "18+ aao coonaet.\oxiaarn\aaro\suoaisi\rirod\-x F— — _ _ _ _ _ _ _ _ _ _ tR i 1 y� seu sus+' o W \ \\ AR ph • � s "+e �sv 4 �\ �++ds?1N Jy 4 re•q°.yp as. g. 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RG3RRxnnRn' S' � bi4 R8R�8Rh�§. __91a8aaso 433 _Y7c I4 mm Q R 5 § LA4 6 SH ITEM 10 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: James O'Grady, Assistant City Manager DATE: August 10, 2004 SUBJECT: Approve the Sponsorship Request For "The Good Old Days Car Show" Prepared by: Gloria Wolnictc, Marketing Coordinator RECOMMENDATION: 1) That the City Council approve funding for 'The Good Old Days Car Show" for actual City support costs which are estimated to be approximately $48,850. 2) That the City Council approve "The Good Old Days Car Show" Sponsorship Agreement with Central Coast Productions and authorize the Mayor to execute the Agreement. DISCUSSION: Staff has received the sponsorship request for The 2005 Good Old Days Car Show. As identified in the City Council Action on September 23, 2003, Central Coast Productions was awarded a minimum three-year sponsorship of this event, with the stipulation that the success of the event would be reviewed by City staff annually. This provision still .applies in the second year of this agreement and provides that the event will proceed if the event is deemed successful in the city's determination and will be reviewed annually. Since the event will be held in February 2005 it is now appropriate to bring this request forward for Council consideration so that marketing and planning can proceed. The Economic Development Subcommittee, consisting of Councilmembers Jeff Comerchero and Ron Roberts, and Staff met to discuss the Economic Development funding requests on March 30, 2004. The subcommittee's recommendations for The Good Old Days Car Show were incorporated in the City's FY 2004-05 Operating Budget, which was approved by the City Council on Tuesday, June 8, 2004. The annual car show provides great exposure for Temecula both on a local and national level. This event increases tourism revenue for the City's restaurants, hotels, shopping centers and wineries. Furthermore, this event will serve as a fundraiser with $5,000 of the total net proceeds directed towards local non-profit organizations, which would be approved by the City's Economic Development Subcommittee. Other local service WwOcdy manager WolnidM%Agendareportsrood Old Days car snow'05.doc groups such as the Boys and Girls Scouts of America, Boys and Girls Club, etc. will also be supported by seeking to include them in event activities. Due to the fact that the car show promotes tourism in Temecula, the funding of City support services would come from the General Fund's budget. The City will provide funding for all City support costs and no direct funding. Such funds have been included in the operation budgets of the various City Departments that will be involved. There will be no commissions paid to any party for the City of Temecula's sponsorships. 2004 Good Old Days Car Show Central Coast Productions produced "The 2004 Good Old Days Car Show," which was held in Old Town Temecula on February 28 — 29, 2004. This event replaced the annual Temecula Rod Run. The attendance at the 2004 Good Old Days Car Show was estimated at 40,000 people for the weekend event. The event showcased a cross section of 676 classic cars, hot rods, and custom cars and the vendors were sold out. Central Coast Productions staged several activities to enhance the event. On Friday evening, there was a car cruise open to only those cars registered in the event, Poker Walk, Show & Shine, live KOLA 99.9 radio remote, barbeque for car participants, Sock Hop dance and an awards ceremony on Sunday. There was no Beer & Wine Garden or alcohol sold at this event. The 2004 Good Old Days Car Show served as a fundraiser with $5,000 of the net proceeds split evenly among the following three local non-profit organizations: YMCA, SAFE (Safe Alternatives for Everyone) and Musicians Workshop. Other local organizations that were involved with the show were able to raise funds for their group. A sampling of the groups included: Boy Scouts, Border Patrol Explorers, Assistance League of Temecula, and California Highway Patrol — Public and Traffic Safety/Torch Run for the Special Olympics. Numerous types and forms of advertising were used to promote the event. Radio, newspaper, magazine, website, direct mail, posters, and flyers as well as at other car events that all contributed to the events collective marketing strategy. Additional exposure was utilized through Central Coast Production's major sponsors. Event articles appeared in newspapers as The Press -Enterprise and The Californian. Print media coverage included Neighbors magazine, Entertainment Round -up, The Country Review, Drive Magazine, Old Cars Auto News, Craftmaster News, and Hotline. As a main sponsor, The Press -Enterprise produced the event program and provided many advertising opportunities. Radio stations promoting the event included: KOLA, KFROG and KATY. 2005 Good Old Days Car Show Central Coast Productions will produce The 2005 Good Old Days Car Show which will be held in Old Town Temecula on February 25 — 27, 2005. The car show will keep the same format as last year's event and will begin on Friday evening and end on Sunday afternoon. Planned event activities will begin with a Friday evening cruise and live entertainment at the Stampede. On Saturday there will be several stages offering live entertainment, and a Treasure Hunt and barbeque for the participants. A new People's Wan3" manager\WolnickgWgendareportsXGood Old Days Car Shm'05.doc 2 Choice Competition will be held during the event where spectators will vote for their best car for a $1.00 donation to a local charity. On Sunday venues include KOLA holding a 50's — 60's look alike Contest, live entertainment and the car show will conclude with an awards ceremony. The show will include 600 — 700 hot rods and classic cars along with related concessions and vendors. There will be no Beer & Wine Garden or alcohol sold at this event. Marketing and publicity will include posters, flyers, car/rod and entertainment magazines and newsletters, major newspapers, websites, and radio throughout Southern California. Flyers will be mailed and distributed at car shows. Local marketing will include newspaper and radio promotion. Additional exposure will be utilized through Central Coast Production's major sponsors. Event Funding City sponsorship includes all City support service costs including police, fire and public works for "The Good Old Days Car Show." The costs of support services for the sponsorship of "The Good Old Days Car Show" are estimated to be roughly $48,850. The FY 2004-05 budget provides funding for these City support service costs. FISCAL IMPACT: The City support costs for "The Good Old Days Car Show" is included in the FY 2004-05 Operating Budget of the various support departments for the recommended sponsorship amounts. Once the event Agreement is executed in final form, Central Coast Productions will be able to receive City support services at the time of the event. ATTACHMENTS: "The Good Old Days Car Show' Attachment A — Sponsorship Package Attachment B — City Support Services and Costs Attachment C — 2005 Budget and Event Overview Attachment D — 2004 Car Show Recap Attachment E — Sponsorship Agreement/Model Conditions of Approval \\SanMcdy manager\Wotnickg\Agendareports\Good Old Days Car Show'05.doc Gold Sponsorship Package 40,000 Spectators More than 700 Car Participants 100+ Vendors all looking at your product....... Temecula's "Good Old Days" Car Show Sponsor Benefits (City of Temecula) Sponsorship Package Includes..... ]_Print Advertising City of Temecula will be prominently displayed throughout all print advertising. Including official program, flyers and newspaper ads relating to the Good Old Days car show. ]During the Event Recognition City name on all driver, vendor and sponsor materials City name on official event t-shirts City of Temecula marketing and publicity pieces in driver gift bags And City information prominently displayed with Central Coast Productions souvenir booth. (Items to be supplied by the City of Temecula) Show Access and Promo Packages 15 official event souvenirs 15 VIP passes Multi -Media Radio ads — City name mentioned in all radio and tv ads Sponsor's Logo on Website "sponsor's page" www.centralcoastcarshows.com _ 1-805-773-9999 ATTACHMENT B "The Good Old Days Car Show" Estimated City Support Services and Costs Below are the estimated City generated services and their costs provided to Central Coast Productions for "The Good Old Days Car Show." Staffing in various classifications is dependent upon event configuration and anticipated needs. Police Services Service costs: $27,500.00 Fire Services Service costs: $ 4,400.00 Public Works Service costs: $ 9,850.00 Community Services Service costs: $ 3,000.00 Code Enforcement Service costs: $ 4,100.00 TOTAL ESTIMATED SERVICE COSTS: $48,850.00 \\San3\city manager\WolnickgyAgendareports\Good Old Days Car Show'05.doc ATTACHMENT C "The Good Old Days Car Show" 2005 Budget and Event Overview \\San3\city manager\WolnickgWgendareports\Good Old Days Car Show'05.doc 2005 Good Old Days Car Show Friday, February 24 Live Entertainment at the Stampede 8:00 pm Friday Night Car Cruise — "Family and Friends Night" 6:00 pm — 8:00 pm Saturday. February 25 Live Entertainment — Stage 1 (Stampede area) 11:00 am — 3:00 pm Live Entertainment — Stage 2 (Fourth Street area) 11:00 am — 3:00 pm New People's Choice — during car show spectators can vote for their best car for a $1.00 donation to a local charity. Treasure Hunt (Participants only) Merchant's Kick Off Barbeque Sunday, February 26 KOLA — 50's — 60's look alike contest Live Entertainment — Stage 1 (Stampede area) 10:00 am — 3:00 pm 6:00 pm — 9:00 pm Noon — 2:00 pm 11:00 am — 3:00 pm Awards Ceremony 2:00 pm Central Coast Produtions, Inc. Good Old Days Car Show - Temecula, CA Budget -2005 Income Apparel Sales $ Car Entry Fees Event Sponsorship Merchant Trophies Vendor Entry Fees _ Total Income Expense Advertising Automobile Expens( Awards & Trophies Dontations Equipment Rental Event Services Event Supplies Insurance Licenses and Permi- Postage and Deliver Temp Help Travel & Entertainm Total Expense 6,000 23,000 15,000 1,000 10,000 2,000 6,000 7,000 7,000 8,000 5,000 3,000 1,000 2,500 5,000 4,000 60,500 Net Income $ 19,500 ATTACHMENT D "The 2004 Good Old Days Car Show" Recap \\San3\dry manager\Wolnickg\Ngendareports\Good Old Days Car Show'05.doc May 17, 2004 City of Temecula 43200 Business Park Drive Temecula, CA 92590 Dear Mayor, Council Members and City Staff, It is with great pleasure that Central Coast Productions give you and your staff a very special thank you. We realize that our relationship is just in the beginning stages but we truly feel that all of us accomplished the goals that we set out to do this first year. As we continue into the second year of us producing the February car show (Good Old Days car show), we realize that we have much more time to create, organize and promote this wonderful community and the people who live in it. We promise to continue to work hard at creating new ideas, over come objectives and build relationships. We cannot forget to give the City staff a great big thank you as they helped and guided us all weekend long. It is very important that we all work together as a team in order to produce a successful event. We have a team here and we look forward to continuing this teamwork. Community wise, we need to recognize that this show help create and donate over $15,000 in donations to several different groups in the City of Temecula. Some of these groups do no get the attention that is needed so we feel this was a huge success. This is one avenue we will concentrate on in the years to come. Overall, I want to thank everyone again. It is always great pleasure to provide a successful event but it is with great honor to work with such an organized team. Sincerely, e Rivera entral Coast Productions Inc. Advertising Schedule for "Good Old Days" November 2003 — February 2004 For The City of Temecula Ocotober Event Advertising Announce "G.O.D. event through out Woodies & Rods Event for 2 days November Drive Magazine — ad placement Old Cars Auto News — ad placement December Drive Magazine Full color ad Old Cars Auto News Full color ad Direct mail piece client list of 10,000 Hotel direct mail piece Flyers Miss Information Event Listing January Drive Magazine Full color ad Old Cars Auto News Full color ad Hotline Full color ad Craftmaster News Event listings Direct mail piece client list 2,000 vendors February KOLA 99.9 Radio ads-182 KOLA 99.9 Live Broadcast KOLA 99.9 Onsite Promotion KFROG Radio ads- 111 Neighbors Full color ad Entertainment Review Full color ad The Californian editorial coverage Press Enterprise editorial coverage Event Posters 2,000 Event Tee Shirts 2,000 value $27,000.00 value $24,000.00 value $24,000.00 value $ 5,000.00 various city locations Press Releases went to various tv, radio and newspapers on a monthly basis. Coverage was covered in part by The Californian & Press Enterprise before and after the event. Event listings are to numerous to list. This is used in order to inform people about "what's happening" so they may plan their schedules. Advertising review: We felt the advertising went well especially since we only had 41/2 months to prepare. Local coverage was good. I think we need to make sure we hit outside the local area for next year. Preparation will allow us to do this by starting sometime in September/October. These months will usually provide a "heads up" to everyone who will then approach us in time to make sure we hit the coverage we need in the outside areas. Television is an option, however, we had plenty of spectators last year and increasing the amount of advertising does not necessarily give us what we want to achieve. The goal is to market the city with the event and the image should be a fun, relax, getaway to the City of Temecula, during the "Good Old Days" car show. The show offers some of the best cars around the WEST COAST. Adding activities that will include the rest of the City is also an avenue we can take. Example, A cruise through the wineries ending up at one with a Dinner. This attracts the groups who are willing to spend a little extra money At the same time giving us a "lift" from the rest of the shows. We cannot forget the locals. This is where the cruise should be more user friendly but a BBQ, Soc Hop (dance) and sneak preview on Thursday or Friday could help get them out of the house. When we advertise and market this event it is essential to know what the City's goal is as ours. Our second year will be much more planned but it is also the considered the "foundation" year. 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'S! 94 a- 0 q'� a .2 a.> ?4 k q w o q o o:t? ° Central Coast Produtions, Inc. iod Old Days Car Show Statement of Income and Expens For February 2004 Car Show Income Apparel Sales $ 3,500 Car Entry Fees 22,785 Event Sponsorship 12,000 Merchant Trophies 85 Vendor Entry Fees 40,000 Total Income 78,370 Expense Advertising 10,800 Automobile Expense 2,200 Awards & Trophies 6,000 Dontations 6,200 Equipment Rental 7,500 Event Services 6,900 Event Supplies 7,325 Insurance 2,500 Licenses and Permits 1,000 Postage and Delivery 2,000 Temp Help 5,000 Travel & Entertainment 3,000 Total Expense 60,425 Net Income $ 17,945 ATTACHMENT E "The Good Old Days Car Show" Sponsorship Agreement/Model Conditions of Approval \\San3\clty manager\Wolnickg\Agendareports\Good Old Days Car Show'05.doc SPONSORSHIP AGREEMENT BETWEEN CITY OF TEMECULA AND CENTRAL COAST PRODUCTIONS This Agreement, is made and effective this 10th day of August. 2004, by and between the CITY OF TEMECULA, (hereinafter referred to as "City), and CENTRAL COAST PRODUCTIONS, a California corporation (hereafter referred to as "Producer"). In consideration of the mutual promises set forth herein, it is agreed by and between the parties as follows: A. Producer shall operate "The Good Old Days Car Show" on February 25 - 27, 2005 and the last weekend in February of 2006. "The Good Old Days Car Show" will be a special event located in Old Town Temecula involving the display of approximately 600 — 700 hot rods and classic cars along with related concessions and vendors ("Car Show"). Car Show must be held in Old Town Temecula. Producer acknowledges and agrees that attendance for previous car shows in Old Town has ranged between 40,000 — 50,000 people for the weekend. Producer shall adhere to the Model Conditions of Approval, which are attached hereto as Attachment A which incorporated herein, and as may be modified in the conditions of approval of the Temporary Use/Special Event Permit. Any violation of this document is subject to termination of this Agreement. B. City shall provide the necessary City Public Works, Community Services, Code Enforcement, Fire and Police support services for the Car Show. In exchange for the City of Temecula providing such support, the City shall be designated as "Presenting Sponsor" of "The Good Old Days Car Show." As a "Presenting Sponsor," the City of Temecula shall receive the benefits as listed in Attachment B. The souvenirs and VIP passes listed in Attachment B must be delivered to the City Manager's office by noon on Friday, February 18, 2005. C. Producer agrees to give the total sum of five thousand dollars from the net proceeds of the Car Show to be shared by local non-profit organizations designated by the Producers with the approval of the City's Economic Development Subcommittee. Producers shall also support other local service groups, such as the Boys and Girt Scouts of America, Boys and Girls Club, etc., by seeking to include them in event activities to the extent reasonably practicable. Within 30 days following the Car Show, Producer shall pay these funds. D. Within 60 days following the Car Show, Producer shall prepare and submit to the Assistant City Manager a written report evaluating the Car Show, its attendance, and describing the materials in which the City was listed as a "Presenting Sponsor." The report should also include samples of media press clippings, flyers, pamphlets, etc. in a presentation notebook format. In addition, a complete financial statement of the revenue and expenses of Car Show shall be included. E. Producer shall file applications for Temporary Use Permit and Special Event Permit with the City of Temecula no later than ninety (90) days proceeding the first day of Car Show. City retains its governmental jurisdiction to determine whether to issue the permits and the nature and scope of conditions of approval. Producers shall comply with all conditions of approval of the permits. \\San3\city m ger\Wolnickg\Spowmd EverdsTinal Good Old Days Car Show Agmnicid'05.130C F. Once the Temporary Use Permit and Special Event Permit applications have been submitted, the permits approved and the permit conditions agreed to in writing, Producer will receive City support services at the time of the event. G. Producer shall defend, indemnify and hold the City, the Redevelopment Agency of the City of Temecula and their elected officials, officers, agents, and employees free and harmless from all claims for damage to persons or by reason of Producers acts or omissions or those of Producer's employees, officers, agents, or invitees in connection with Car Show to the maximum extent allowed by law. H. Producer shall secure from a good and responsible company or companies doing insurance business in the State of California as an admitted carrier, pay for and maintain in full force and effect for the duration of this Agreement an insurance policy of comprehensive general liability, automobile and employer's liability in which the City and Redevelopment Agency are named insured or is named as an additional insured with Producer and shall furnish a Certificate of Liability to the City. The applicable evidence of insurance shall be submitted to the City not less than thirty (30) days prior to the Car Show. Producer acknowledges and agrees that City may terminate this Agreement and revoke the Temporary Use Permit and Special Event Permit in the event that evidence of insurance complying with the requirements of this Section is not received on or before thirty (30) days prior to the Car Show. Notwithstanding any inconsistent statement in the policy or any subsequent endorsement attached hereto, the protection offered by the policy shall include; Minimum Scope of Insurance. Coverage shall be at least as broad as (a) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). (b) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). (c) Worker's Compensation Insurance as required by the State of California and Employer's Liability Insurance. 2. Minimum Limits of Insurance. Contractor shall maintain limits no less than: (a) General Liability: Two million dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage. (b) Automobile Liability: One million dollars ($1,000,000) per accident for bodily injury and property damage. (c) Employer's Liability: One million dollars ($1,000,000) per accident for bodily injury or disease. 3. Include the City and Redevelopment Agency as the insured or named as an additional insured covering all claims arising out of, or in connection with the Car Show. \VSanMcity manager\Wolnickg\Sponsored EventsTinal Good Old Days Car Show Ageemett'05.DOC 4. Include the City, its officers, employees and agents while acting within the scope of their duties under this Agreement against all claims arising out of, or in connection with Car Show. 5. The insurer shall agree to waive all rights of subrogation against the City, its officer, officials, employees and volunteers for losses arising from Car Show. 6. Bear an endorsement or shall have attached a rider whereby it is provided that, in the event of any modification, expiration, proposed cancellation of such policy for any reason whatsoever, the City shall be notified by registered mail, postage prepaid, return receipt requested, not less than thirty (30) days beforehand. 7. Any deductible or self -insured retention must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductible or self -insured retention as respects the City, its officers, officials and employees or Producer shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. 8. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the Agency. I. 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. Should any litigation be commenced between the parties, hereto, concerning the provisions of this Agreement, the prevailing party concerning the provisions of this Agreement, the prevailing party in such litigation shall be entitled to reasonable attorney's fees, in addition to any other relief to which it may be entitled. J. This Agreement shall take effect on August 10, 2004 and shall terminate on April 1, 2006, unless sooner terminated pursuant to this Agreement. In the event of a breach of this Agreement affecting the public health, safety or welfare or which affects providing insurance and which cannot be cured prior to the start of the Car Show, the City Council may immediately terminate this Agreement and revoke the Special Event Permit and Temporary Use Permit. The City Council of the City of Temecula may terminate this Agreement, for any reason and in its sole discretion, subject to the following conditions: The Agreement shall not be terminated prior to May 1, 2005; 2. Notice of proposed termination shall be sent to Producer not less than ten (10) days prior to the scheduled meeting at which termination will be discussed. 3. Notice of termination shall be sent to Producer not later than May 1 of the year preceding the next Car Show. M=3\city manager\Wolnickg\Sponsored EvemsTinal Good Old Days Car Show Agreement'OS.DOC K. Producer shall not assign its interest in this Agreement to any person or entity without first obtaining the prior written consent of the City Council. Any assignment without the Council's prior written consent shall be voidable and, at the Civs election, shall constitute a default. No consent of the City Council shall be required for agreements with vendors, concessionaires and advertisers at the Car Show, or booking or other performance agreements with entertainers. L. 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: Agency: CITY OF TEMECULA P.O. Box 9033 43200 Business Park Drive Temecula, CA 92589-9033 Attention: City Manager Producer. CENTRAL COAST PRODUCTIONS P.O. Box 1546 Pismo Beach, CA 93448 Attention: Vice President M. 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. \\San3\city m ga\Wolmckg\Sponsomd Evenls\Fnal Good Old Days Car Show Agmement'05.DOc Attachment A THE GOOD OLD DAYS CAR SHOW MODEL CONDITIONS OF APPROVAL 2005 Subject: Planning Application No. PA_-_ (Temporary Use Permit) for The Good Old Days Car Show to be held in Old Town Temecula on February 25, 2005 6:00 PM — 9:00 PM and February 26 and 27, 2005, 5:00 AM — 4:00 PM. Dear Planning Application No. PA_-_ is hereby approved subject to the following conditions of approval: City of Temecula Planning Department The permittee/applicant shall indemnify, protect, defend, and hold harmless, the City and any agency or instrumentality thereof, and/or any of its officers, employees, and agents from any and all claims, actions, or proceedings against the City, or any agency or instrumentality thereof, or any of its officers, employees and agents, to attack, set aside, void, annul, or seek monetary damages resulting from an approval of the City, or any agency or instrumentality thereof, advisory agency, appeal board or legislative body including actions approved by the voters of the City, concerning the Planning Application PA= _ which action is brought within the appropriate statute of limitations period and Public Resources Code, Division 13, Chapter 4 (Section 21000 et seq., including but not by the way of limitations Section 21152 and 21167). The City shall promptly notify the permittee/applicant of any claim, action, or proceeding brought forth within this time period. The City shall estimate the cost of the defense of the action and applicant shall deposit said amount with the City. City may require additional deposits to cover anticipated costs. City shall refund, without interest, any unused portions of the deposit once the litigation is finally concluded. Should the City fail to either promptly notify or cooperate fully, permittee/applicant shall not, thereafter be responsible to indemnify, defend, protect, or hold harmless the City, any agency of instrumentality thereof, or any of its officers, employees, or C:\Docmnents and Settings\GIoria.WohckV.oca1 Settings\Temporary Intemet Files\OL (2FFVVtODEL CONDITIONS GOOD OLD DAYS CAR SHOW.DOC agents. Should the Applicant fail to timely post the required deposit, the Director may terminate this Temporary Use Permit without further notice to the Applicant. 2. Central Coast Productions, the main sponsor of the Good Old Days Car Show, shall obtain insurance in the amounts set forth in the August 10, 2004 agreement with the City of Temecula. The insurance certificate must show the City of Temecula, City of Temecula Redevelopment Agency and the applicant as additional insured. This sponsorship insurance shall be submitted to and approved by the City of Temecula Finance Department no later than 30 days prior to the car show. 3. The applicant shall also require that all participating food and non-food vendors identified on Exhibit C and the private security company used for this event provide evidence of general liability insurance in the amount of $1,000,000. The certificates must show the City of Temecula, City of Temecula Redevelopment Agency and the applicant as additional insured. All vendor insurance certificates shall be submitted to and approved by the City of Temecula Finance Department no later than February 10, 2005. 4. All food and non-food vendors who are approved to be located in the road right- of-way areas of the site plan for this event shall not set up prior to 5:00 AM on February 26 and 27, 2005. 5. All food and non-food vendors shall display a laminated authorization card provided by he applicant indicating the name of the vendor and space number. 6. This event is approved for February 25, 6:00 PM — 9:00 PM and February 26 and 27, 2005 from 5:00 AM - 4:00 PM. per the approved business plan, Exhibit B. The Conditions of Approval shall supersede the approved Business Plan where there is a conflict between the two documents. 7. The applicant shall obtain written permission from private property owners of all parcels used for the bypass road between Mercedes St. and First St., parking lots, car display areas and vendor locations. Documentation of this written permission shall be provided to the City of Temecula Planning Department fifteen (15) days prior to the start of the event. All on -street car display parking within the event area shall be parallel in order to maintain required emergency access. 9. The event shall be developed per the approved site plan, Exhibit A. 10. Code Enforcement Officers shall be assigned to the event on February 25, 26 and 27, 2005. C:\Docvmeats m d SettiW\Ota Womiddr.o W Sdtmp\Tampa y Iatcamt Fd=\0LK2FF\M0DEL CONDMONS GOOD OLD DAYS CAR SHOW4.DOC 11. Off -site signs are not allowed in the City of Temecula without authorization from all property owners and the Community Development Director/Deputy City Manager. Applicants shall obtain permits from the City of Temecula Planning Department for all approved sign locations. 12. As required in the August 10, 2004 agreement, due to charitable organizations approved by Development Subcommittee within thirty (30) the Good Old Days Car Show. City of Temecula Building and Safety Department the applicant shall pay all monies the City of Temecula Economic days following the conclusion of 13. Applicant shall obtain temporary electrical permits for any electrical provided for this event. Inspections of proper grounding of power generators and power cable installations are required and shall be scheduled 24 hours in advance. 14. An adequate amount of handicapped parking spaces shall be provided as indicated on the approved site plan, Exhibit A. Parking lots and spaces shall be clearly marked for handicapped use. City of Temecula Public Works Department 15. The applicant shall submit a completed Special Event Package Application to the City of Temecula Public Works Department no later than November 25, 2004, (90 days prior to the event) with the $100 application fee. 16. All off-street parking shall be accessed through existing curb cut driveway approaches only. No entry shall be permitted over standard curbs. All No Parking restrictions throughout the event must be adhered to. 17. Applicant is responsible for any costs associated with the cleanup of mud and debris deposited on public streets from the use of any off-street parking lots and for any trash cleanup of the event area required after the conclusion of the event. 18. All trash receptacles shall be emptied and serviced on a regular basis throughout the duration of the event and all trash and debris shall be cleaned up and removed from the event area on a daily basis by the applicant. CADocu mts and Settings\G1orla.Wolnick\Loca1 Settings\Temporary Intemet Files\OLR2FFMODEL CONDITIONS GOOD OLD DAYS CAR SHOW.DOC 19. No participant shall use, sell or distribute any self-adhesive stickers during this event. City of Temecula Fire Protection Bureau 20. Applicant shall comply with all comments and conditions outlined in the attached letter from the City of Temecula Fire Prevention Bureau dated _, Riverside County Health Department 21. Applicant shall comply with all comments and conditions outlined in the attached letter from the Riverside County Health Department dated Temecula Police Department 22. Applicant shall comply with all comments and conditions outlined in the attached letter from the Temecula Police Department dated Temecula Community Services Department 23. Applicant shall comply with all comments and conditions outlined in the attached letter from the Temecula Community Services Department dated Should you have any further questions regarding these conditions, please do not hesitate to contact me at (909) 694-6400. Sincerely, Knute Noland Development Processing Coordinator By placing my signature below, I confirm that I have read, understand and accept all the above -mentioned Conditions of Approval. I further understand that any changes I may wish to make to the event shall be subject to Planning Department approval. C:\Documents and Settings\Gloria. Wolnick\Local Settings\Tempomry Intemet Files\OLK2FF\MODEL CONDITIONS GOOD OLD DAYS CAR SHOW.DOC Applicant cc: Lynn Fanene — City of Temecula Police Department Kevin Harrington — City of Temecula Community Services Department Brad Buron — City of Temecula Public Works Department Mike Horton — City of Temecula Fire Protection Bureau John Meyer — City of Temecula Redevelopment Department Marianne Parker — City of Temecula Planning Department (Code Enforcement) California Highway Patrol — Temecula Office C:\Dmmmts and Settings\Gloria. WolnickUL al Settings\Tempomry Intemet Files\OMFRMODEL CONDMONS GOOD OLD DAYS CAR SHOW.DOC Cold Sponso!-ship Package 40,000 Spectators More than 700 Car Participants 100+ Vendors all looking at your product....... Temecula's "Good Old Days" Car Show Sponsor Benefits (City of Temecula) Sponsorship Package Includes..... Print Advertising City of Temecula will be prominently displayed throughout all print advertising. Including official program, flyers and newspaper ads relating to the Good Old Days car show. During the Event Recogriftion City name on all driver, vendor and sponsor materials City name on official event t-shirts City of Temecula marketing and publicity pieces in driver gift bags And City information prominently displayed with Central Coast Productions souvenir booth. (Items to be supplied by the City of Temecula) Show Access and Promo Packaaes 15 official event souvenirs 15 VIP passes Multi -Media Radio ads — City name mentioned in all radio and tv ads Sponsor's Logo on Website "sponsor's page" www.centralcoastcarshows.com 1-805-773-9999 ITEM 11 CITY ATTORNEY DIRECTOR OF FI CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Herman Parker, Director of Community Services DATE: August 10, 2004 SUBJECT: Arts Council of Temecula Valley Special Events Community Grant Agreement PREPARED BY: � Phyllis L. Ruse, Deputy Director of Community Services RECOMMENDATION: That the City Council approve a Special Events Community Grant Agreement between the Cityof Temecula and the Arts Council of Temecula Valley in the amount of $22,000. DISCUSSION: The Arts Council of Temecula Valley (Arts Council) has been sponsoring Fall and Spring Concerts on the Green and an annual Arts in the Country Festival for several years. The City has traditionally participated with the Arts Council in partial funding of these events. Funds provided by the City are used to pay for orchestras, advertising and promotion, printing, stage and lighting. The Arts Council would again like to offer these events to the community and is requesting that the City participate in this effort by providing a community special events grant. The grant will provide $12,000 in funding toward the Fall Concert on the Green and $10,000 in funding toward the Arts in the Country Festival, for a total grant of $22,000. FISCAL IMPACT: The cost to co-sponsor the Fall Concert on the Green and Arts in the Country Festival is $22,000. Sufficient funds are appropriated and available in the Community Support Budget of the General Fund. Attachment: Special Events Community Grant Agreement RARUSEPWGENDA&2004-05 Arts Council Event Grant Agreement-CC.doc SPECIAL EVENTS COMMUNITY GRANT AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE ARTS COUNCIL OF TEMECULA VALLEY THIS AGREEMENT is made by and between the City of Temecula ("City"), a municipal corporation, and the Arts Council of Temecula Valley, a non-profit corporation, and is dated as of August 10, 2004. In consideration of the mutual covenants and agreements contained herein, the parties agree as follows: 1. This Agreement is made with respect to the following facts and purposes, which each of the parties hereto acknowledge and agree to be true and correct: a. The Arts Council of Temecula Valley ("Arts Council") coordinates many programs for the cultural arts within the City of Temecula, which are not provided by the City's recreation and cultural arts program. b. The Arts Council warrants and represents to the City that it is a non-profit, tax exempt corporation under the tax laws of the United State and California, and agrees to continue in such status during the term of this Agreement. b. The City Council desires to award a special events community grant to the Arts Council in the amount of twenty-two thousand dollars ($22,000) for the purpose of continuing and enhancing its cultural arts programs within the City of Temecula. The City Council hereby allocates $12,000 to co-sponsor the costs of providing the Spring Concert on the Green and $10,000 for the Arts in the Country Festival special events ("Events") to be presented by the Arts Council during fiscal year 2004-2005. C. This Agreement provides for the manner in which the grant will be paid to the Arts Council. 2. The City shall pay $22,000 to the Arts Council to promote and present the Events for the fiscal year ending June 30, 2005. Arts Council shall submit an invoice to the City prior to each event, which shall represent the City's sponsorship of each event as outlined in Section 1.b. City shall pay the invoice or provide its written objections to it within thirty (30) working days following receipt by the City. 3. The term of this agreement shall be July 1, 2004 to June 30, 2005. 4. The City may at any time, for any breach of this Agreement, suspend or terminate this Agreement, or any portion hereof, by serving upon the Arts Council at least ten (10) days prior written notice. If the breach is corrected during this ten-day period, City may, in its sole and exclusive discretion, rescind the termination. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. Arts Council shall make available to the City its books, records and financial documents in such form as to allow City to verify Arts Council's compliance with the terms of this Agreement. RIRUSEMONTRACT\2004-05 Arts Council Community Special Events Grant Agreement.doc 5. The Arts Council agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, and employees from and against any and all claims, demands, losses, defense costs or expenses, including attorney fees and expert witness fees, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Arts Council's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement, excepting only liability attributable to the active negligence of the City. 6. Arts Council shall procure and maintain, or shall have provided on its behalf, for the duration of fiscal year 2004-2005 insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the activities of the Arts Council, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability form No. CG 00 01 11 85 or 88, including a non -owned auto endorsement. (2) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. Workers Compensation Insurance shall not be required if the Arts Council has no employees. b. Minimum Limits of Insurance. Arts Council shall maintain limits on the policies described in Subsection a. of no less than the following amounts unless otherwise approved by the City Manager: (1) General Liability: One million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. (2) Workers' Compensation as required by the State; Employer's Liability: One million dollars ($1,000,000) per accident for bodily injury or disease. C. Deductibles and Self -Insured Retentions. Any deductibles or self -insured retentions must be declared to and approved by the City Manager. d. Other Insurance Provisions. The general liability policies shall 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 Arts Council; premises owned, occupied or used by the Arts Council; or automobiles owned, leased, hired or borrowed by the Arts Council. 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 Agreement, the Arts Council's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self -insured maintained by R:\RUSEP\CONTRACT\2004-05 Arts Council Community Special Events Grant Agreement.doc the City, its officers, officials, employees or volunteers shall be excess of the Arts Council'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 Arts Council'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 to the City by certified mail, return receipt requested, has been given to the City. e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coverage. Arts Council shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by the City before work commences. As an alternative to the City's forms, the Arts Council's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 7. Arts Council is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Arts Council shall at all times be under Arts Council's exclusive direction and control. Neither City nor any of its officers, employees or agents shall have control over the conduct of Arts Council or any of Arts Council's officers, employees or agents, except as set forth in this Agreement. Arts Council shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. Arts Council shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. 8. Any notices which either parry may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by Notice. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. R:\RUSEP\CONTRACT\2004-05 Arts Council Community Special Events Grant Agreement.doc To City: City of Temecula 43200 Business Park Drive P.O. Box 9033 Temecula, California 92589-9033 Attention: City Manager To Arts Council: Arts Council of Temecula Valley P.O. Box 2337 Temecula, California 92593 Attention: Martha Minkler, Executive Director 9. The Arts Council shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. 10. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. R:\RUSEP\CONTRACT\2004-05 Arts Council Community Special Events Grant Agreement.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Attest: Michael. S. Naggar Mayor Susan Jones, CMC City Clerk Approved As to Form: Peter M. Thorson City Attorney ARTS COUNCIL OF TEMECULA VALLEY, a California non-profit corporation By: _ Name: Title: By: _ Name: R:\RUSEMCONTRACT\2004-05 Arts Council Community Special Events Grant Agreement.doc ITEM 12 APPROVAL CITY ATTORNEY DIR. OF FINAN CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Tim Thorson, Director of Information Systems DATE: August 10, 2004 SUBJECT: Procurement of Updated Pentium Computer Workstations RECOMMENDATION: That the City Council authorize the purchase of 45 Pentium based Hewlet Packard (HP) computer workstations from HP for the total amount of $50,330.03. DISCUSSION: The City has adopted HP computer, server, and storage subsystems as a standard hardware configuration. This standard simplifies parts replacement, trouble shooting, and allows the City's Intelligent Network Management System to monitor a common suite of computer hardware. This minimizes downtime and makes the IS Department more efficient. In order to maintain a life cycle management program to keep the City's hardware inventory moving according to prescribed amortization schedules, thirty eight of these machines will be replacing older systems that no longer meet the technical requirements necessary to run the City's current applications. The remaining systems are necessary for new employees in the City Clerk, Community Services, Building and Safety and Public Works Departments and were budgeted for in the current 04/05 fiscal budget. HP Pentium workstations are available on Western States Contracting Alliance (WSCA) approved agreements. The competitively, quoted price is provided by an authorized WSCA contractor. Under this agreement it is within the City's discretion to take advantage of the pricing on another governmental entity contract. The contract is made available for use by State of California agencies and any city, county or local governmental agency empowered to expend public funds. Therefore, this purchase is exempt from competitive bidding requirements. Staffs research has determined that the WSCA price is the most competitive. Additionally, a local vendor is on the WSCA suppliers list as a Value Added Reseller (VAR): AmeriComp Infosystems Inc. located at 41421 Date Street, Mumeta, CA. Also, it has been determined that the WSCA program is consistent with the City's procurement policies and regulations and that it is used by many cities as an industry standard. FISCAL IMPACT: Adequate funds were appropriated in the 2004-05 Fiscal Year Budget for the Information Services Internal Services fund. Attachment: HP Public Sector Sales. WSCA Quote HP PUBLIC SECTOR SALES QUOTATION Web Quote ID 359991 Quote Name AmeriComp Infosystems Inc, Murrieta, CA Contract Name MULTI - WESTERN STATES CONTRACTING ALLIANCE (WSCA) Contract Number 90-00151 Quote Created By tom.hafeli@cityoftemecula.org on 8/2/2004 4:58:52 PM items/description part no unit price qty ext price HP Compaq Business Base $1,038.00 45 $46,710.00 d530 Small Form Factor HP Compaq d530 small DC578AV form factor d530 SFF/CMT DD811AV#ABA documentation Intel® 865G chipset DV678AV Intel@ Pentium® 4 DV653AV Processor 3.00EGHz/80OMHz with HT Technology Microsoft@ Windows@ XP DQ747AV-530 Professional SP1a (with Restore CD) 512MB DDR PC2700 DD727AV (DDR333) Integrated Intel@ Extreme Included graphics2 (64MB equivalent) 40GB ATA/100 7200RPM DD707AV hard drive 1.44MB Floppy drive DD740AV 48X CD-ROM drive DD765AV Integrated Intel@ audio Included w/premium internal speaker HP USB optical scroll DD736AV mouse HP USB keyboard easy DD779AV#ABA access KBD Broadcom NetXtreme Included Gigabit ethernet solution 3 Years parts & labor with 3 Included years next business day onsite SubTotal : $46,710.00 Tax: $3,620.03 Total : $50,330.03 ITEM 13 APPROVAL CITY ATTORNEY WIN DIRECTOR OF FINA ! CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Grant Yates, Assistant to the City Manager DATE: August 10, 2004 SUBJECT: Amendment to Animal Friends of the Valley Contract for Animal Control Services PREPARED BY: Aaron Adams, Sr. Management Analyst RECOMMENDATION: That the City Council: 1. APPROVE a one-year contract extension for Animal Control Services with Animal Friends of the Valley not to exceed $130,000. 2. AUTHORIZE the City Manager to approve additional service not to exceed ten percent (10%) of the amount of the Agreement. BACKGROUND: The City of Temecula has contracted with Animal Friends of the Valley, (formerly L.E.A.F.), since 1995 for animal control services. Animal Friends of the Valley has performed very well during this period, and City staff, including the Police Department, has been very satisfied with the services they provide. This renewal was originally brought before the City Council in June and approved. Shortly after this approval, staff discovered that the 41h Amendment did not clearly outline how fine monies received through administrative citations will be retained by Animal Friends of the Valley to be used to further offset operating costs for this contract period. This error was discussed with the City Attorney and it was his legal opinion that the agreement be cleaned up and brought back for approval before the City Council. This Contract Extension is for a period of one year. The current contract expires on June 30, 2004. It is staff's intent, in extending this contract for one year, to work with Animal Friends of the Valley as they continue to explore the concept of building their own shelter. The Cities and County continue to work towards the formation of a joint -powers authority (JPA) which will greatly assist in the effort to construct and operate a new animal shelter in SW Riverside County. The flat fee for animal control services for 2004-05 will become $8,750 per month. This flat rate is a result of the estimated animal control service hours and mileage for service during the upcoming year. The yearly budgeted amount for such services remains the same from FY 03- 04. Animal Friends of the Valley will provide one full time Animal Control Officer, a fully equipped vehicle, and shelter for the City of Temecula's animals. The Animal Control Officer will be serving the City of Temecula 8 hours, 5 days a week as well as weekends and emergency calls. The administrative staff will also conduct hearings for animal control problems. The above RAADAMSA\COUNCILLLEAF Contmct Etlens,on 2004 A.00c mentioned rate will cover 195 Animal Control Officer hours, as well as 2,815 miles and house 85 animals per month. FISCAL IMPACT: The fiscal year 2004-05 Operating Budget includes $130,000 for Animal Control Services. This amount will cover the increases associated with this amendment. ATTACHMENT(S): Contract Amendment R IADAMSMCOUNCRLLEAF Contract Extension 2004 AAcc FOURTH AMENDMENT TO AGREEMENT FOR ANIMAL CONTROL SERVICES BETWEEN THE CITY OF TEMECULA AND ANIMAL FRIENDS OF THE VALLEY THIS FOURTH AMENDMENT is made and effective as of July 1, 2004 by and between the City of Temecula, a municipal corporation ("City"), and Animal Friends of the Valley ("AFV"), a California non-profit corporation. In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. Recitals. This Fourth Amendment is made with respect to the following facts and purposes, which each party agrees to be true and correct: a. On September 26, 1995, the parties entered into that certain agreement entitled "Agreement for Animal Services" under which AFV has provided a wide variety of animal care and control services for the City ("Agreement'). b. The parties have amended the Agreement three times: The First Amendment is dated January 25, 2000, the Second Amendment is dated June 27, 2000, and the Third Amendment is dated June 24, 2003. As used in this Fourth Amendment, the term "Agreement" includes the original Agreement dated September 26, 1995, as amended. C. During the course of this Agreement, "Lake Elsinore Animal Friends" changed its name to "Animal Friends of the Valley." For convenience in implementing the provisions of the Agreement, the abbreviation "AFV" has been substituted for the abbreviation "LEAF" to describe Animal Friends of the Valley, the party to this Agreement. 2. Term. Section 1 of the Agreement is hereby amended to read as follows: "This Agreement shall commence on December 1, 1995 and shall remain and continue in effect until July 1, 2005." 3. Payment. Section 4b. of the Agreement is hereby deleted and Section 4a. of the Agreement is hereby amended to read as follows: "a. The City agrees to pay AFV monthly, in accordance with the payment rates and terms and the schedule of payment as set forth on Exhibit A, Compensation and Payment Schedule, attached hereto and incorporated herein by this reference as though set forth in full, for the services described in Section 2, Services." 4. Compensation and Payment Schedule. Exhibit A-1, Compensation and Payment Schedule, attached hereto in incorporated herein by this reference, is hereby substituted in place of Exhibit A to the Agreement. July 25,2004 786148.1 1 5. Licensing Fees. Section l.h.(iv) of Exhibit B, Scope of Services, is hereby amended to read as follows: "AFV shall collect all license fees and penalties on behalf of the City as set forth in Exhibit A, issue receipts for all such fees collected and keep copies thereof." 6. June 22, 2004 Amendment Renealed.The amendment to the Agreement entitled approved by the City Council on June 22, 2004 is hereby repealed and is superceded by the terms of this Fourth Amendment. 7. Other Provisions Retained. Except as specifically provided herein, all other terms and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the undersigned have executed this Agreement in the State of California. CITY OF TEMECULA Attest: Mike Naggar Mayor Susan Jones, City Clerk Approved as to Form Peter M. Thorson City Attorney July 25, 2004 786148.1 2 ANIMAL FRIENDS OF THE VALLEY, a California non-profit corporation By: Name: Title: By: _ Name: Title: July 25, 2004 786148.1 EXHIBIT A-1 COMPENSATION AND PAYMENT SCHEDULE (July 2004) 1. City shall pay to AFV a flat fee of eight thousand seven hundred fifty dollars ($8,750.00) per month for one hundred ninety five (195) Animal Control Officer hours, two thousand eight hundred fifteen (2,815) miles of vehicle travel, and housing eighty-five animals per month, in providing the animal care and control services described in Exhibit A of this Agreement. AFV shall provide one full time Animal Control Officer, a fully equipped animal services vehicle, and an animal shelter for the City of Temecula's animals. The Animal Control Officer shall serve the City of Temecula eight (8) hours per day, five (5) days per week, as well as weekend and emergency calls. 2. The total costs of service for July 1, 2004 to June 30, 2005 shall not exceed one hundred thirty thousand dollars ($130,000.00). The City Manager may approve, in writing, additional services not to exceed ten percent (10%) of the yearly amount of this Agreement. Any additional work in excess of $143,000.00 shall be approved by the City Council. 3. Mileage shall be charged at thirty eight cents ($.38) per mile 4. For the kenneling of strays picked up by Animal Control and stray animals turned in by the public, AFV shall charge the City twelve dollars ($12.00) per day. 5. For emergency veterinariay care for injured/ill strays AFV shall charge the actual costs of such veterinary care, but not to exceed one thousand dollars ($1,000.00) per year. 6. License fees for dogs shall be: a. Altered dogs $15 for 1 year: b. Altered dogs $20 for 2 years; C. Altered dogs $25 for 3 years; d. Unaltered dogs $50 for 1 year; e. Unaltered dogs $100 for 2 years; f. Unaltered dogs $150 for 3 years; g. Senior Citizen's dogs $8 for 1 year; h. Senior Citizen's dogs $10 for 2 years; i. Senior Citizen's dogs $12 for 3 years; and j. Late penalty of $20 per license. 7. AFV shall retain five dollars ($5.00) for any renewal of a license originally issued prior to July 1, 2000 for AFV's general purposes. This amount shall be included within the maximum amount payable to AFV during fiscal year 2004-05. July 25, 2004 786148.1 4 8. For all original licenses issued after July 1, 2000, and renewals of these licenses, AFV shall retain eight dollars ($8.00), which amount shall be applied to the City's proportionate share of the costs of a new animal shelter facility for Southwest Riverside County. Additionally, to the extent that AFV issues citations or otherwise imposes penalties in its enforcement capacity as described in the Scope of Services, Exhibit A, AFV shall retain the revenues generated from such enforcement actions which amounts shall be applied to the City's proportionate share of the costs of a new animal shelter facility for Southwest Riverside County, less reasonable administrative costs and any handling costs incurred by the City or by the City's independent collection Agency. This amount shall be included within the maximum amount payable to AFV during fiscal year 2004-05. 9. All monies collected pursuant to this Agreement shall be accounted for as required in the Scope of Services, Exhibit A. July 25, 2004 786148.1 5 TEMECULA COMMUNITY SERVICES DISTRICT ITEM 1 MINUTES OF A REGULAR MEETING OF THE TEMECULA COMMUNITY SERVICES DISTRICT JULY 13, 2004 A regular meeting of the City of Temecula Community Services District was called to order at 7:26 P.M., at the City Council Chambers, 43200 Business Park Drive, Temecula, California. ROLL CALL PRESENT: 4 DIRECTORS: Comerchero, Roberts, Stone, Washington ABSENT: 1 DIRECTORS: Naggar Also present were Assistant General Manager Jim O'Grady, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No comments. CONSENT CALENDAR Minutes RECOMMENDATION: 1.1 Approve the minutes of June 22, 2004. — President Washington abstained. 2 Completion and Acceotance of the Children's Museum Exhibit Designs and Plans and Specifications — Sparks Exhibits and Environments. Project No CSD02-0022 RECOMMENDATION: 2.1 Accept the completion of Children's Museum Exhibit Designs and Plans and Specifications, Project No. CSD02-0022 and authorize the City Clerk to file the Notice of Completion. Tract Map No. 26828 — Service Level B Service Level C and Service Level D Rates and Charges RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. CSD 04-10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT ACKNOWLEDGING THE FILING OF A REPORT WITH RESPECT TO SERVICE LEVEL B, SERVICE LEVEL C, AND R:\Minutes.csd\071304 SERVICE LEVEL D RATES AND CHARGES FOR TRACT MAP NOS. 26828-1, -2 AND FINAL BEGINNING FISCAL YEAR 2005- 2006 AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING IN CONNECTION THEREWITH MOTION: Director Stone moved to approve Consent Calendar Item Nos. 1- seconded by Director Comerchero and electronic vote reflected unanimou DIRECTOR OF COMMUNITY SERVICES REPORT No comments. GENERAL MANAGER'S REPORT No comments. BOARD OF DIRECTORS' REPORTS No comments. ADJOURNMENT s At 7:28 P.M., the Temecula Community Services District meeting was formally adjourned to Tuesday, July 27, 2004, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. Chuck Washington, President ATTEST: Susan W. Jones, CMC City Clerk/District Secretary [SEAL] RAMinutes.cscR071304 MINUTES OF A REGULAR MEETING OF THE TEMECULA COMMUNITY SERVICES DISTRICT JULY 27, 2004 A regular meeting of the City of Temecula Community Services District was called to order at 7:21 P.M., at the City Council Chambers, 43200 Business Park Drive, Temecula, California. ROLL CALL PRESENT: 3 DIRECTORS: Comerchero, Roberts, Naggar ABSENT: 2 DIRECTORS: Stone and Washington Also present were Assistant General Manager Jim O'Grady, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No comments. CONSENT CALENDAR 1 Minutes K RECOMMENDATION: 1.1 Approve the minutes of July 13, 2004. (This item was continued to the meeting of August 10, 2004.) TI 2.1 Approve the Construction Plans and Specifications and authorize the Department of Public Works to solicit construction bids for Project No. PW04-10CSD - Veteran's Memorial Project. 3 Acceptance of Landscape Bonds and Agreements for Tract Mao No. 29133 RECOMMENDATION: 3.1 Accept the agreement and surety bonds from Gallery Traditions Partners, LLC to improve the perimeter slopes and parkways along Ynez Road and Open Space Lot 9 within Tract Map No. 29133. R:Winutes.csd\072704 4 Japanese Garden at the Temecula Duck Pond RECOMMENDATION: 4.1 Approve the conceptual master plan in its substantial form for the Nakayama Garden at the Temecula Duck Pond. MOTION: Director Comerchero moved to approve Consent Calendar Item Nos. 2-4 (Item No. 1 was continued to the meeting of August 10, 2004.) The motion was seconded by Director Roberts and electronic vote reflected approval with the exception of Director Stone and President Washington who were absent. DISTRICT BUSINESS 5 Naming of Wolf Creek Park Site RECOMMENDATION: 5.1 Approve the name "Wolf Creek Park" for a six -acre park site in the Wolf Creek Development as recommended by the Community Services Commission. Development Services Administrator McCarthy reviewed the staff report (as per written material). Highlighting the location of the park, Mr. Adam Smith, representing Standard Pacific Homes, Corona, expressed support of staffs recommendation. MOTION: Director Comerchero moved to approve staff recommendation. The motion was seconded by Director Roberts and electronic vote reflected approval with the exception of Director Stone and President Washington who were absent. DEPARTMENTAL REPORTS No additional comments. DIRECTOR OF COMMUNITY SERVICES REPORT No comments. GENERAL MANAGER'S REPORT No comments. BOARD OF DIRECTORS' REPORTS No comments. R: Wtinutes.csd\072704 ADJOURNMENT At 7:28 P.M., the Temecula Community Services District meeting was formally adjourned to Tuesday, August 10, 2004, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. Chuck Washington, President ATTEST: Susan W. Jones, CMC City Clerk/District Secretary [SEAL] RAMin utes.csdk072704 ITEM 2 CITY ATTORNEY FINANCE DIREC- CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: August 10, 2004 SUBJECT: Arts Council Community Grant Agreement PREPARED BY: P- Phyllis L. Ruse, Deputy Director of Community Services RECOMMENDATION: That the Board of Directors approve the Community Grant Agreement between the Temecula Community Services District (TCSD) and the Arts Council of Temecula Valley in the amount of $40,000. BACKGROUND: The Arts Council of Temecula Valley has been providing a variety of arts and cultural activities in the City of Temecula for several years. Some of their events include the annual Arts Festival and also the Concerts on the Green program. The Arts Council worked extensively with City staff and AMS Planning and Research in the development of the City's Cultural Arts Master Plan. By way of the Community Grant Agreement, the Arts Council commits to continue the implementation process for the Cultural Arts Master Plan. TCSD staff and the Arts Council have agreed upon goals and objectives that the Arts Council will implement by the end of this fiscal year as part of this agreement. The Arts Council's efforts will continue to focus on: • Providing opportunities for arts education in schools and the community • Generating greater awareness and participation in arts and cultural programs • Enhancing the community trough art in public places • Assisting, encouraging and fostering cooperation among cultural organizations and individuals artists in the Temecula Valley • Developing performing and visual arts facilities • Preserving the historic legacy of the Temecula Valley This agreement provides $40,000 in funding for continued implementation of the cultural arts programs in the City of Temecula. The Arts Council will submit an invoice to the TCSD at the end of RARUSERAGENDASt2004-05 Arts Council Grant Agreement.doc each calendar quarter for the actual costs of personnel, which will be accompanied by appropriate documentation. FISCAL IMPACT: Funding in the amount of $40,000 is appropriated in the TCSD budget for FY 2004-05 for the Arts Council program. Attachment: Community Grant Agreement RARUSEP\AGENDAS\2004-05 Arts Council Grant Agreement.doc COMMUNITY GRANT AGREEMENT BETWEEN THE TEMECULA COMMUNITY SERVICES DISTRICT AND THE ARTS COUNCIL OF TEMECULA VALLEY THIS AGREEMENT is made by and between the Temecula Community Services District (TCSD), a municipal corporation, and the Arts Council of Temecula Valley, a non-profit corporation, and is dated as of August 10, 2004. In consideration of the mutual covenants and agreements contained herein, the parties agree as follows: 1. This Agreement is made with respect to the following facts and purposes, which each of the parties hereto acknowledge and agree to be true and correct: a. The Arts Council of Temecula Valley ("Arts Council") coordinates many programs for the cultural arts within the City of Temecula, which are not provided by the TCSD's recreation and cultural arts program. b. The Arts Council warrants and represents to the TCSD that it is a non-profit, tax exempt corporation under the tax laws of the United State and California, and agrees to continue in such status during the term of this Agreement. b. The Board of Directors desires to award a community grant to the Arts Council in the amount of forty thousand dollars ($40,000.00) for the purpose of continuing and enhancing its cultural arts programs within the City of Temecula. The Board of Directors hereby allocates $40,000 for the costs of personnel working for the Arts Council for fiscal year 2004-2005. C. This Agreement provides for the manner in which the grant will be paid to the Arts Council. 2. The TCSD shall pay to the Arts Council on a quarterly basis, an amount equal to the actual costs for employees of the Arts Council for the preceding quarter, not to exceed $10,000.00 per quarter or $40,000.00 for the fiscal year ending June 30, 2005. Arts Council shall submit an invoice to the TCSD at the end of each calendar quarter for the actual costs of personnel, which shall be accompanied by such documentation as reasonably required by the Director of Finance to establish that such costs were incurred by the Arts Council. TCSD shall pay the invoice or provide its written objections to it within thirty (30) working days following receipt by the TCSD. 3. The term of this agreement shall be July 1, 2004 to June 30, 2005. 4. The Arts Council and TCSD staff have developed goals and objectives which are set forth in Exhibit A. The Arts Council is committed to implementing these Goals and Objectives and assisting the TCSD in implementing the City's Cultural Arts Master Plan. 5. The TCSD may at any time, for any breach of this Agreement, suspend or terminate this Agreement, or any portion hereof, by serving upon the Arts Council at least ten (10) days prior written notice. If the breach is corrected during this ten-day period, TCSD may, in its sole and exclusive discretion, rescind the termination. If the TCSD suspends or R:\RUSEMCONTRACT\2004-05 Arts Council Community Grant Agreement.doc terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. Arts Council shall make available to the TCSD its books, records and financial documents in such form as to allow TCSD to verify Arts Council's compliance with the terms of this Agreement. 6. The Arts Council agrees to defend, indemnify, protect and hold harmless the City, TCSD, its officers, officials, and employees from and against any and all claims, demands, losses, defense costs or expenses, including attorney fees and expert witness fees, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Arts Council's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement, excepting only liability attributable to the active negligence of the City. 7. Arts Council shall procure and maintain, or shall have provided on its behalf, for the duration of fiscal year 2004-2005 insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the activities of the Arts Council, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability form No. CG 00 01 11 85 or 88, including a non -owned auto endorsement. (2) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. Workers Compensation Insurance shall not be required if the Arts Council has no employees. b. Minimum Limits of Insurance. Arts Council shall maintain limits on the policies described in Subsection a. of no less than the following amounts unless otherwise approved by the City Manager: (1) General Liability: One million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. (2) Workers' Compensation as required by the State; Employer's Liability: One million dollars ($1,000,000) per accident for bodily injury or disease. C. Deductibles and Self -Insured Retentions. Any deductibles or self -insured retentions must be declared to and approved by the City Manager. d. Other Insurance Provisions. The general liability policies shall contain, or be endorsed to contain, the following provisions: (1) The City, TCSD, 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 Arts Council; premises owned, occupied or used by the Arts Council; or automobiles owned, leased, hired or borrowed by RARUSERCONTRACT12004-05 Arts Council Community Grant Agreement.doc the Arts Council. 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 Agreement, the Arts Council'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 Arts Council'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 Arts Council'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 to the City by certified mail, return receipt requested, has been given to the City. e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coverage. Arts Council shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by the City before work commences. As an alternative to the City's forms, the Arts Council's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 8. Arts Council is and shall at all times remain as to the City and TCSD a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Arts Council shall at all times be under Arts Council's exclusive direction and control. Neither City nor any of its officers, employees or agents shall have control over the conduct of Arts Council or any of Arts Council's officers, employees or agents, except as set forth in this Agreement. Arts Council shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. Arts Council shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. 9. 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 parry as set forth below or at any other address as that party may later designate by Notice. Notice R:\RUSEP\CONTRACT\2004-05 Arts Council Community Grant Agreement.doc shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. To City: City of Temecula 43200 Business Park Drive P.O. Box 9033 Temecula, California 92589-9033 Attention: City Manager To Arts Council: Arts Council of Temecula Valley P.O. Box 2337 Temecula, California 92593 Attention: Martha Minkler, Executive Director 10. The Arts Council shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City or TCSD. 11. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. R:\RUSEP\CONTRACT\2004-05 Arts Council Community Grant Agreement.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Attest: Chuck Washington, President Temecula Community Services District Susan Jones, CMC City Clerk Approved As to Form: Peter M. Thorson City Attorney ARTS COUNCIL OF TEMECULA VALLEY, a California non-profit corporation By: _ Name: By: _ Name: R:\RUSEP\CONTRACT\2004-05 Arts Council Community Grant Agreement.doc THE C O U N C I L OF TEMECULA VALLEY EXHIBIT A July 21, 2004 BOARD OF TRUSTEES Charles & Nicolet Araujo Greg Brown Mr. Herman Parker, Director Luana De Groot -Canty Luanne Ferrer Community Services Department Ofelia Filanc City of Temecula Ruth H. Hobbs Post Office Box 9033 Jon and lane Laskin Patricia Lusin Temecula, California 92589-9033 Jimmy Moore Angela Morris RE: MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY Edward Powers OF TEMECULA AND THE ARTS COUNCIL OF TEMECULA VALLEY: Al Rattann Greg Richter IMPLEMENTATION OF CULTURAL ARTS MASTER PLAN Sheila Havens Ryle Bruce Singer Dear Herman, Paula Stankovich Dr. Al wagoner Dr. Alan &Georgia The Arts Council of Temecula Valley has accepted the responsibility given to it eY acceP po ty Winkeistein by the City of Temecula to implement the Cultural Arts Master Plan. Working cooperatively with the City of Temecula, the Arts Council is positioned to move forward CONSULTANTS during fiscal year 2004-2005, to continue implementing objectives of five of the six goals outlined in the Cultural Arts Master Plan. Eduardo Ferrer Jim Mert t er M. Stewart M. Morris, Jr. The six goals, as outlined in the P providing g � include i' opportunities P � for arts Karen Parrott education in schools and the community, generating greater awareness and participation Alicen Wong in arts and cultural programs, enhancing the community through art in public places, assisting, encouraging and fostering cooperation among cultural organizations and EXECUTIVE DIRECTOR individual artists in the Temecula Valley, developing performing and visual arts facilities, and preserving the historic legacy of Temecula Valley. Martha N. Minkler In the 2004-2005 fiscal year the Arts Council is committed to accomplishing the following: ARTS COUNCIL OF TEMECULA VALLEY GOALS: 211481 RANCHO CALIFORNIA ROAD, SUITE 104 ARTS IN EDUCATION: TO PROVIDE OPPORTUNITIES FOR ARTS TEMECULA, CA 92590 EDUCATION IN SCHOOLS AND THE OVERALL COMMUNITY. MAILING: P.O. BOX 2337 TEMECULA, CA 92593 OBJECTIVES. Coordinate and expand the sixth annual Summer Youth Art Institute in July 2005. PHOFAX: 9: . 1.69 .9438 F/U(:951.695.9438 Co-sponsor with Temecula Valley Unified School District and the City of Temecula l� e3' tY artscouncil@dslextreme.com (facilities use), the sixth annual Youth Art Exhibition. www.artsinthevalley.org Work with the Temecula Valley Educational Foundation for Excellence to generate financial support for the arts in local schools. 1 of 1-City of Temecula -CAMP Implementation 2004-2005 Continue Boys and Girls Clubs after school arts partnership and expand current programs. Continue Safe Alternatives for Everyone -Police Activities League partnership by providing art instruction and supplies for area youth. Encourage local students and adults to enter or audition for regional, state and national competitions by distributing information received from Americans for the Arts, California Arts Council, various state and national arts commissions, councils, port authorities and other arts entities. Information is distributed by Arts Council of Temecula Valley via Artifacts Newsletter, Council Website, specialized mailings to artists and email. PUBLIC INVOLVEMENT: TO GENERATE GREATER AWARENESS AND PARTICIPATION IN ARTS AND CULTURAL PROGRAMS. OBJECTIVES: Produce the Fifteenth Annual Arts in the Country Festival 2005. Showcase as many cultural arts organizations as possible during that time. Expand and produce the Sixteenth Annual Visual Expressions Juried Art Show. Produce the Fall Concert on the Green. Assist Musicians Workshop with the Temecula Valley International Jazz Festival 2005. Support the Theatre Foundation's effort to complete fund raising efforts for Community Theatre. Coordinate and manage the Kids for Komen Art Contest for the Susan G. Komen Breast Cancer Inland Empire Affiliate Race for the Cure 2004. Increase Council visibility and programs by forging partnerships with social services, economic development, business and other agencies where the arts can improve quality of life. Continue adding to and fine-tuning the Arts Council's Website, www.artsinthevalley.ora, by expanding the Resource Directory, providing additional regional, state and national links to arts, culture, and tourism and establishing a more comprehensive cultural arts master calendar. Provide mechanism for arts organizations or arts related businesses to promote their activities and businesses via the Arts Council Website. 2 of 2-City of Temecula -CAMP Implementation 2004-2005 PUBLIC ART: TO ENHANCE THE COMMUNITY THROUGH ART IN PUBLIC PLACES. OBJECTIVES. Partner with the City of Temecula and Sister City Association to organize a November 2005 exhibit showcasing photographic works of art from Leidschendam-Voorburg, Netherlands. Work with the City and interested artists to create a community sculpture garden. Work with the City to provide names of artists and sculptors when needed. Provide artists for rotating art exhibitions in City Hall. Provide artists for rotating art exhibits at Southwest California Business Development Center. COLLABORATION & SUPPORT SERVICES: TO ASSIST, ENCOURAGE, AND FOSTER COOPERATION AMONG CULTURAL ORGANIZATIONS AND INDIVIDUAL ARTISTS IN TEMECULA. OBJECTIVES. Assist in the rebuilding effort of Dorland Mountain Arts Colony. Continue assisting arts organizations by marketing their events through the Arts in the Country Festival. Update and maintain the Cultural Arts Master Calendar on the Arts Council's Website. Encourage cultural arts organizations to submit dates for inclusion via the Artifacts Newsletter and other communication with arts organizations. Play a leadership role with Musicians Workshop to create an organization to build the Community Cultural Arts and Music Education Center. Assist Musicians Workshop with organizing and publicizing the In Home Concert Series. Assist Temecula International Film Festival with the development of a Kids Film Camp. Assist Temecula Valley Players by obtaining facilities for and publicizing their events. Assist Mt. San Jacinto Community College's Music Education program, by publicizing the concerts of Southwest Women's Community Chorus, Valley Winds Wine Country Band Festival, and Jazz Ensemble. 3 of 3-City of Temecula -CAMP Implementation 2004-2005 Continue publicizing local cultural arts organizations calls for artists, auditions, and events in the Artifacts Newsletters and the Arts in the Country brochures and programs. Assist Ballet Temecula and the Temecula City Ballet with their expansion plans. FACILITIES: TO DEVELOP FACILITIES TO ACCOMMODATE PERFORMING AND VISUAL ARTS. OBJECTIVES. Continue working in an advisory capacity with the Theatre Foundation to review grant requests for the Community Theatre. Continue participating in fund raising efforts for the Old Town Community Theatre. HERITAGE: TO PRESERVE THE HISTORIC LEGACY OF TEMECULA VALLEY. OBJECTIVES. The Arts Council, having facilitated the formation of the Temecula Valley Historical Society in 2000-2001, will continue supporting the efforts of both the Temecula Valley Museum and Temecula Valley Historical Society by publicizing their events in the Artifacts Newsletter, distributing their fliers at Council events, and making their information available at the Arts Council's office. The contract fee of Forty Thousand dollars ($40,000.00) for implementing the Cultural Arts Master Plan is to be paid quarterly, as per City of Temecula specifications, commencing July 1, 2004 and ending June 30, 2005. If you need additional information or have questions please feel free to call me at 909.695.2787. Thank you once again for your confidence in the Arts Council of Temecula Valley to implement the Cultural Arts Ma er Plan. 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M)� (L04 il wIL' EZf®7 § �7� g|2\{$)2a) «;o LL=0©-22-ai §=f o za4a222`a% 0==25oaE=1 2`` \ ua2I .=CL m o@_ 27kk/k-\1 kko § u�<eloEz;o /af74002- o-q wo:ee=,-=J �°p ■ -7,CO ems=; LuM ° § a .0 >r Em) § ILk0oco0E0= L22gm=[=�; -,-`«_0 §§{ x UIoo>00`0 CL ¥ off}//f/\kw S(\ 5 ®"=2:�2 22f§la=5cV §20 w �20;/¥75o 20)77(4k$§ o UR 15 ]))-5.2!)V5 ��`` 10 0 222 222 u«a-a-«««« <0 2 om(L mo _CD REDEVELOPMENT AGENCY ITEM 1 MINUTES OF A REGULAR MEETING OF THE TEMECULA REDEVELOPMENT AGENCY JULY 13, 2004 A regular meeting of the City of Temecula Redevelopment Agency was called to order at 7:28 P.M., in the City Council Chambers, 43200 Business Park Drive, and Temecula. ROLL CALL PRESENT: 4 AGENCY MEMBERS ABSENT: 1 AGENCY MEMBERS: Roberts, Stone, Washington, Comerchero Naggar 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 June 22, 2004. — Agency Member Washington abstained. 2 Agreement between Melody's Ad Works and the Redevelopment Agency RECOMMENDATION: 2.1 Approve an agreement with Melody's Ad Works for promoting and marketing Special Events in Old town. MOTION: Agency Member Stone moved to approve Consent Calendar Item Nos. 1-2. The motion was seconded by Agency Member Washington and electronic vote reflected approval with the exception of Agency Member Naggar who was absent and Agency Member Washington who abstained on Item No. 1. EXECUTIVE DIRECTOR'S REPORT No comments. AGENCY MEMBERS' REPORTS No comments. RAMinutes. rda1071304 ADJOURNMENT At 7:29 P.M., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, July 27, 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\071304 MINUTES OF A REGULAR MEETING OF THE TEMECULA REDEVELOPMENT AGENCY JULY 27, 2004 A regular meeting of the City of Temecula Redevelopment Agency was called to order at 7:26 P.M., in the City Council Chambers, 43200 Business Park Drive, and Temecula. ROLL CALL PRESENT: 3 AGENCY MEMBERS Roberts, Naggar, Comerchero ABSENT: 2 AGENCY MEMBERS: Stone and Washington Also present were Assistant Executive Director O'Grady, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No input. CONSENT CALENDAR Minutes RECOMMENDATION: 1.1 Approve the minutes of July 13, 2004. (This item was continued to the meeting of August 10, 2004.) Corporation RECOMMENDATION: 2.1 Authorize the Executive Director to approve an extension of performance dates for issuance of building permits and certificate of occupancy as outlined in a letter from Guidant dated July 13, 2004. MOTION: Agency Member Naggar moved to approve Consent Calendar Item No. 2 (Item No. 1 was continued to the meeting of August 10, 2004.) The motion was seconded by Agency Member Roberts and electronic vote reflected approval with the exception of Agency Member Stone and President Washington who were absent. DEPARTMENTAL REPORT No additional comment. Rawl inutes. rda\072704 EXECUTIVE DIRECTOR'S REPORT With the approval of Item No. 2, Assistant Executive Director O'Grady advised that the City Attorney has prepared a companion agreement which will be recorded as an amendment to the agreement which will mirror the approved letter. AGENCY MEMBERS' REPORTS No comments. ADJOURNMENT At 7:28 P.M., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, August 10, 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: Wlinutes.rda\072704 TEMECULA PUBLIC FINANCING AUTHORITY ITEM 1 MINUTES OF A REGULAR MEETING OF THE TEMECULA PUBLIC FINANCING AUTHORITY JULY 13, 2004 A regular meeting of the City of Temecula Public Financing Authority was called to order at 7:30 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula. ROLL CALL PRESENT: 4 AGENCY MEMBERS: Comerchero, Roberts, Stone, Washington ABSENT: 1 AGENCY MEMBER: Naggar 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 March 16, 2004. — Director Washington abstained. 2 Authorization of Special Tax Levy in Community Facilities District No. 03-1 (Crowne Hill) RECOMMENDATION: 2.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 04-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL) 3 Authorization of Special Tax Levy in Community Facilities District No. 01-2 (Harveston) RECOMMENDATION: 3.1 Adopt a resolution entitled: RAMi nutes.tpfa\071304 RESOLUTION NO. TPFA 04-05 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) Authorization of Special Tax Levy in Community Facilities District No. 03-3 (Wolf Creek) RECOMMENDATION: 4.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 04-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-3 (WOLF CREEK) MOTION: Authority Member Stone moved to approve Consent Calendar Item Nos. 1-2. The motion was seconded by Authority Member Roberts and electronic vote reflected approval with the exception of Authority Member Naggar who was absent and Agency Member Washington who abstained on Item No. 1. No comments BOARD OF DIRECTORS' REPORTS No comments. ADJOURNMENT At 7:30 P.M., the Temecula Public Financing Authority meeting was formally adjourned. Michael S. Naggar, Chairman ATTEST: Susan W. Jones, CIVIC City Clerk/Agency Secretary [SEAL] RAM1 nutes.tpfa\071304 ITEM 2 CITY ATTORNEY DIR.OF FINANCE CITY MANAGER TEMECULA PUBLIC FINANCING AUTHORITY AGENDA REPORT TO: Temecula Public Financing Authority FROM: Executive Director Shawn Nelson DATE: August 10, 2004 SUBJECT: Issuance of Bonds for Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) RECOMMENDATION: That the Board of Directors adopt a resolution entitled: RESOLUTION NO. TPFA 04- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS OF THE TEMECULA PUBLIC FINANCING AUTHORITY FOR COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON 11), AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS BACKGROUND: Harveston, LLC, a Delaware limited liability company has submitted a petition requesting that the Authority form a community facilities district (the "CFD") to fund various public improvements necessitated by the construction of the Harveston subdivision. The CFD is intended to fund improvement costs not already funded by the Authority's Community Facilities District No. 01-2 (Harveston). On November 25, 2003, (i) a public hearing was held regarding the formation of the CFD, (ii) the Board of Directors adopted a resolution of formation of the CFD, (iii) an election was held wherein the then owners of land in the CFD approved the CFD, the levy of a special tax on land located in the CFD, and the issuance of bonds by the Authority for the CFD, and (iv) the CFD was declared to be officially formed. Various documents have been prepared relative to the issuance of the bonds by the Authority for the CFD, including (i) a Fiscal Agent Agreement which provides the terms of the bonds to be issued and establishes the funds and accounts from which the CFD bond program will be administered; (ii) a Preliminary Official Statement which describes the bond program, to be 20009.05:J7690 used to assist in the offering of the bonds to potential investors; (iii) a Bond Purchase Agreement, whereby the bonds will be sold by the Authority to Stone & Youngberg LLC (the "Underwriter') for sale by the Underwriter to the public; and (iv) a Continuing Disclosure Agreement pursuant to which the Authority will agree to provide certain information regarding the bond program to investors and certain nationally -recognized information repositories. If the Board of Directors adopts the Resolution authorizing the issuance of the bonds, it is expected that the bonds will be issued on or about September 1, 2004. FISCAL IMPACT: The bonds will not be obligations of the City of Temecula, or general obligations of the Authority or the CFD, but will be limited obligations of the Authority for the CFD secured solely by the special taxes levied in the CFD and amounts held in certain funds and accounts established under the Fiscal Agent Agreement for the bonds. All costs of issuance of the bonds will be paid from the proceeds of the bonds. All administrative costs of the CFD and the bond program will be paid from proceeds of the special taxes levied in the CFD. The CFD will only be authorized to levy the special taxes on land included within the boundaries of the CFD. Attachments: Resolution Fiscal Agent Agreement Preliminary Official Statement Bond Purchase Agreement Continuing Disclosure Agreement lye RESOLUTION NO. TPFA 04- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS FOR COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II), AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS WHEREAS, this Board of Directors has conducted proceedings under and pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Law"), to form the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) (the "District'), to authorize the levy of special taxes upon the land within the District, and to issue bonds secured by the special taxes the proceeds of which are to be used to finance certain public improvements (the "Facilities"), all as described in the Resolutions entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority of Formation of Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II), Authorizing the Levy of a Special Tax Within the District, Preliminarily Establishing an Appropriations Limit for the District and Submitting Levy of the Special Tax and the Establishment of the Appropriations Limit to the Qualified Electors of the District" (the "Resolution of Formation") and "A Resolution of the Board of Directors of the Temecula Public Financing Authority Determining the Necessity to Incur Bonded Indebtedness Within Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) and Submitting Proposition to the Qualified Electors of the District,' which Resolutions were adopted by this Board of Directors on November 25, 2003; and WHEREAS, pursuant to said resolutions, an election was held within the District on November 25, 2003 and the qualified electors approved the propositions of the incurrence of the bonded debt, the establishment of the appropriations limit and the levy of the special tax by more than two-thirds of the votes cast at said special election; and WHEREAS, there have been submitted to this Board of Directors for its approval a Fiscal Agent Agreement (the "Fiscal Agent Agreement") providing for the issuance of the Bonds (as defined in Section 1 below) and the use of the proceeds of the Bonds to finance the Facilities, as well as a Preliminary Official Statement (the "Preliminary Official Statement") describing the Bonds, a bond purchase agreement to be used in connection with the sale of the Bonds (the "Purchase Contract") and a Continuing Disclosure Agreement relating to the Bonds (the "Continuing Disclosure Agreement'), and this Board of Directors, with the aid of Authority staff, has reviewed said documents and found them to be in proper order; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of said bonds and the levy of said special taxes as contemplated by this Resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Law. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Public Financing Authority as follows: Section 1. Pursuant to the Law, this Resolution and the Fiscal Agent Agreement, special tax bonds of the Temecula Public Financing Authority (the "Authority") for the District in an aggregate principal amount not to exceed $5,500,000 are hereby authorized to be issued, such bonds to be designated the 'Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004" (the "Bonds"). The Bonds shall be executed in the form set forth in and otherwise as provided in the Fiscal Agent Agreement. The Board of Directors hereby finds and determines that the Bonds (based on the appraisal of Stephen G. White, MAI, of the parcels in the District subject to the levy of special taxes), have in excess of a one to three lien to value ratio as required by the Authority's Local Goals and Policies for Community Facilities Districts, adopted by the Board of Directors on April 10, 2001 (the "Local Goals and Policies"). The Board of Directors finds that the Bonds, when issued pursuant to the Fiscal Agent Agreement, will be in accordance with the Local Goals and Policies. The Board of Directors further finds that the sale of the Bonds at negotiated sale as contemplated by the Purchase Contract will result in a lower overall cost. Section 2. The Fiscal Agent Agreement with respect to the Bonds, in the form presented to this Board of Directors at this meeting, is hereby approved. The Executive Director and the Treasurer, each acting alone, are hereby authorized and directed to execute and deliver the Fiscal Agent Agreement in said form, with such additions thereto or changes therein as are approved by the officer of the Authority executing the Fiscal Agent Agreement upon consultation with the Authority's General Counsel and Bond Counsel, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement by the Executive Director or the Treasurer. The date, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in the Fiscal Agent Agreement as finally executed. Section 3. The Purchase Contract between the Authority and Stone & Youngberg LLC (the "Underwriter'), in the form presented to the Board of Directors at this meeting, is hereby approved. The Executive Director and the Treasurer, each acting alone, are hereby authorized and directed to accept the offer of the Underwriter to purchase the Bonds contained in the Purchase Contract (provided that the aggregate principal amount of the Bonds sold thereby is not in excess of $5,500,000, the true interest cost of the Bonds is not in excess of 7.00% and the underwriter's discount is not in excess of 2.00% of the aggregate principal amount of the Bonds) and to execute and deliver the Purchase Contract in said form, with such additions thereto or changes therein as are recommended or approved by the officer of the Authority executing the Purchase Contract for the Authority upon consultation with the Authority's General Counsel and Bond Counsel, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Purchase Contract by the Executive Director or the Treasurer. Section 4. The Preliminary Official Statement, in the form presented to the Board of Directors at this meeting, is hereby approved. The Executive Director and the Treasurer, each acting alone, are hereby authorized and directed, for and in the name and on behalf of the Authority, to make changes to the Preliminary Official Statement prior to its dissemination to prospective investors, and to bring the Preliminary Official Statement into the form of a final official statement (the "Official Statement") including such additions thereto or changes therein as are recommended or approved by either of such officers upon consultation with Authority's General Counsel and Disclosure Counsel. The Executive Director and the Treasurer, each acting alone, are hereby authorized and directed to execute and deliver the Official Statement. The Underwriter is hereby authorized to distribute copies of the Preliminary Official Statement to persons who may be interested in the purchase of the Bonds and is directed to deliver copies of the Official Statement to all actual purchasers of the Bonds. -2- The Executive Director and the Treasurer, each acting alone, are hereby authorized to execute a certificate or certificates to the effect that the Official Statement and the Preliminary Official Statement were deemed "final" as of their respective dates for purposes of Rule 15c2- 12 of the Securities Exchange Act of 1934, and each of them is authorized to so deem such statements final. Section 5. The Continuing Disclosure Agreement related to the Bonds, in the form presented to the Board of Directors at this meeting, is hereby approved. The Executive Director and the Treasurer, each acting alone, are hereby authorized and directed, for and in the name of and on behalf of the Authority, to execute and deliver the Continuing Disclosure Agreement in said form, with such additions thereto or changes therein as are deemed necessary, desirable or appropriate by the officer of the Authority executing the Continuing Disclosure Agreement upon consultation with the Authority's General Counsel and Disclosure Counsel, the approval of such changes to be conclusively evidenced by the execution and delivery by the Executive Director or the Treasurer of the Continuing Disclosure Agreement. Section 6. The Authority hereby covenants, for the benefit of the Bondowners, to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of interest or principal of the Bonds, said foreclosure action to be commenced and pursued as more completely set forth in the Fiscal Agent Agreement. Section 7. The Bonds, when executed, shall be delivered to the Fiscal Agent for authentication. The Fiscal Agent (as defined in the Fiscal Agent Agreement) is hereby requested and directed to authenticate the Bonds by executing the Fiscal Agent's certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to the Underwriter in accordance with written instructions executed on behalf of the Authority by the Executive Director, which instructions such officer is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver to the Fiscal Agent. Such instructions shall provide for the delivery of the Bonds to the Underwriter upon payment of the purchase price therefor. Section 8. All actions heretofore taken by the officers and agents of the Authority with respect to the establishment of the District and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the proper officers of the Authority are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with this Resolution, and any certificate, agreement, and other document described in the documents herein approved. Whenever in this Resolution any officer of the Authority is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. -3- Section 9. This Resolution shall take effect upon its adoption. PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temecula Public Financing Authority at a meeting held on the 10'" day of August, 2004. Chairperson ATTEST: Susan W. Jones, CMC City Clerk/Authority Secretary STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan Jones, Secretary of the Temecula Public Financing Authority, HEREBY DO CERTIFY that the foregoing Resolution No. TPFA 04-_ was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 10`" day of August, 2004, by the following vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Susan W. Jones, CMC City Clerk/Authority Secretary -4- e, Quint & 1ltinunig LLP 4/21/045/24/04 7/26/04 FISCAL AGENT AGREEMENT by and between the TEMECULA PUBLIC FINANCING AUTHORITY and U.S. BANK NATIONAL ASSOCIATION, as Fiscal Agent Dated as of August 1, 2004 Relating to: Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 20009.05:j7448 TABLE OF CONTENTS ARTICLE I STATUTORY AUTHORITY AND DEFINITIONS Section 1.01. Authority for this Agreement.......................................................................................................3 Section 1.02. Agreement for Benefit of Owners of the Bonds.........................................................................3 Section1.03. Definitions.......................................................................................................................................3 ARTICLE II THE BONDS Section 2.01. Principal Amount; Designation..................................................................................................11 Section 2.02. Terms of the Series 2004 Bonds...................................................................................................11 Section2.03. Redemption...................................................................................................................................13 Section2.04. Form of Bonds...............................................................................................................................15 Section2.05. Execution of Bonds.......................................................................................................................16 Section2.06. Transfer of Bonds.........................................................................................................................16 Section2.07. Exchange of Bonds.......................................................................................................................16 Section2.08. Bond Register................................................................................................................................17 Section2.09. Temporary Bonds.........................................................................................................................17 Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen.............................................................................17 Section 2.11. Limited Obligation.......................................................................................................................18 Section2.12. No Acceleration............................................................................................................................18 Section2.13. Book -Entry System.......................................................................................................................18 Section2.14. Issuance of Parity Bonds..............................................................................................................19 ARTICLE III ISSUANCE OF BONDS Section 3.01. Issuance and Delivery of Series 2004 Bonds.............................................................................21 Section 3.02. Pledge of Special Tax Revenues.................................................................................................21 Section3.03. Validity of Bonds..........................................................................................................................21 ARTICLE IV FUNDS AND ACCOUNTS Section 4.01. Application of Proceeds of Sale of Series 2004 Bonds and Other Moneys ............................22 Section4.02. Improvement Fund......................................................................................................................22 Section4.03. Costs of Issuance Fund................................................................................................................23 Section4.04. Reserve Fund................................................................................................................................23 Section4.05. Bond Fund.....................................................................................................................................25 Section4.06. Special Tax Fund..........................................................................................................................26 Section 4.07. Administrative Expense Fund....................................................................................................27 ARTICLE V OTHER COVENANTS OF THE AUTHORITY Section 5.01. Punctual Payment ......................... Section 5.02. Limited Obligation ....................... Section 5.03. Extension of Time for Payment.. Section 5.04. Against Encumbrances ................ ........................28 ........................28 ........................28 ........................28 -i- Section5.05. Books and Records.......................................................................................................................28 Section 5.06. Protection of Security and Rights of Owners............................................................................29 Section5.07. Compliance with Law..................................................................................................................29 Section 5.08. Collection of Special Tax Revenues............................................................................................29 Section5.09. Covenant to Foreclose..................................................................................................................30 Section5.10. Further Assurances......................................................................................................................30 Section 5.11. Private Activity Bond Limitations..............................................................................................31 Section 5.12. Federal Guarantee Prohibition....................................................................................................31 Section5.13. Rebate Requirement.....................................................................................................................31 Section5.14. No Arbitrage.................................................................................................................................31 Section5.15. Yield of the Bonds........................................................................................................................31 Section 5.16. Maintenance of Tax-Exemption..................................................................................................31 Section 5.17. Continuing Disclosure to Owners..............................................................................................32 Section 5.18. Reduction of Special Taxes..........................................................................................................32 Section 5.19. Limits on Special Tax Waivers and Bond Tenders...................................................................32 ARTICLE VI INVESTMENTS, DISPOSITION OF INVESTMENT PROCEEDS, LIABILITY OF THE AUTHORITY Section 6.01. Deposit and Investment of Moneys in Funds...........................................................................33 Section6.02. Limited Obligation.......................................................................................................................34 Section6.03. Liability of Authority ...................................................................................................................34 Section 6.04. Employment of Agents by Authority ........................................................................................35 ARTICLE VII THE FISCAL AGENT Section 7.01. Appointment of Fiscal Agent......................................................................................................36 Section 7.02. Liability of Fiscal Agent...............................................................................................................37 Section7.03. Information....................................................................................................................................38 Section 7.04. Notice to Fiscal Agent..................................................................................................................38 Section 7.05. Compensation, Indemnification.................................................................................................38 ARTICLE VIII MODIFICATION OR AMENDMENT OF THIS AGREEMENT Section8.01. Amendments Permitted..............................................................................................................40 Section8.02. Owners' Meetings.........................................................................................................................40 Section 8.03. Procedure for Amendment with Written Consent of Owners...............................................41 Section8.04. Disqualified Bonds.......................................................................................................................41 Section 8.05. Effect of Supplemental Agreement............................................................................................42 Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments.....................................42 Section 8.07. Amendatory Endorsement of Bonds.........................................................................................42 ARTICLE IX MISCELLANEOUS Section 9.01. Benefits of Agreement Limited to Parties.................................................................................43 Section 9.02. Successor is Deemed Included in All References to Predecessor..........................................43 Section 9.03. Discharge of Agreement..............................................................................................................43 Section 9.04. Execution of Documents and Proof of Ownership by Owners..............................................44 Section 9.05. Waiver of Personal Liability ........................................................................................................44 -n- Section 9.06. Notices to and Demands on Authority and Fiscal Agent ....... Section 9.07. State Reporting Requirements.................................................... Section 9.08. Partial Invalidity ........................................................................... Section 9.09. Unclaimed Moneys...................................................................... Section 9.10. Applicable Law............................................................................. Section 9.11. Conflict with Act........................................................................... Section 9.12. Conclusive Evidence of Regularity ............................................ Section 9.13. Payment on Business Day........................................................... Section 9.14. Counterparts................................................................................. ....................47 FISCAL AGENT AGREEMENT Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 THIS FISCAL AGENT AGREEMENT (the "Agreement'), dated as of August 1, 2004, is by and between the Temecula Public Financing Authority, a joint exercise of powers authority organized and existing under and by virtue of the laws of the State of California (the "Authority") for and on behalf of the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) (the "District'), and U.S. Bank National Association, a national banking association duly organized and existing under the laws of the United States of America, as fiscal agent (the "Fiscal Agent'). RECITALS: WHEREAS, the Board of Directors of the Authority has formed the District under the provisions of the Mello -Roos Community Facilities Act of 1982, as amended (Section 53311, et seq. of the California Government Code) (the "Act') and Resolution No. TPFA 03-27 of the Board of Directors of the Authority adopted on November 25, 2003 (the "Resolution of Formation"); WHEREAS, the Board of Directors of the Authority, as the legislative body for the District, is authorized under the Act to levy special taxes to pay for the costs of the District and to authorize the issuance of bonds secured by said special taxes under the Act; WHEREAS, under the provisions of the Act, on August 10, 2004 the Board of Directors of the Authority adopted its Resolution No. TPFA 04-_ (the 'Resolution'), which resolution authorized the issuance and sale of the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 (the 'Bonds") in an aggregate principal amount of not to exceed $5,500,000, and authorized the execution of this Agreement; WHEREAS, it is in the public interest and for the benefit of the Authority, the District and the owners of the Bonds that the Authority enter into this Agreement to provide for the issuance of the Bonds, the disbursement of proceeds of the Bonds, the disposition of the special taxes securing the Bonds and the administration and payment of the Bonds; and WHEREAS, the Authority has determined that all things necessary to cause the Bonds, when executed by the Authority for the District and issued as in the Act, the Resolution and this Agreement provided, to be legal, valid and binding and special obligations of the Authority for the District in accordance with their terms, and all things necessary to cause the creation, authorization, execution and delivery of this Agreement and the creation, -1- authorization, execution and issuance of the Bonds, subject to the terms hereof, have in all respects been duly authorized. AGREEMENT. NOW, THEREFORE, in consideration of the covenants and provisions herein set forth and for other valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows: -z- ARTICLE I STATUTORY AUTHORITY AND DEFINITIONS Section 1.01. Authorityfor this Agreement. This Agreement is entered into pursuant to the provisions of the Act and the Resolution. Section 1.02. Agreement for Benefit of Owners of the Bonds. The provisions, covenants and agreements herein set forth to be performed by or on behalf of the Authority shall be for the equal benefit, protection and security of the Owners of the Bonds. All of the Bonds, without regard to the time or times of their issuance or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided in or permitted by this Agreement. The Fiscal Agent may become the Owner of any of the Bonds in its own or any other capacity with the same rights it would have if it were not Fiscal Agent. Section 1.03. Definitions. Unless the context otherwise requires, the terms defined in this Section 1.03 shall, for all purposes of this Agreement, of any Supplemental Agreement, and of any certificate, opinion or other document herein mentioned, have the meanings herein specified. All references herein to "Articles," "Sections' and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement, and the words "herein," "hereof," "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof. "Acquisition Agreement" means the Acquisition Agreement, dated as of March 1, 2003, between the Authority and Harveston, as amended and supplemented by Supplement No. 1 to Acquisition Agreement, dated as of November 25, 2003, between the Authority and Harveston, and as it may be further amended from time to time in accordance with its terms. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Sections 53311 et seq. of the California Government Code. "Administrative Expenses" means costs directly related to the administration of the District consisting of the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the Treasurer or designee thereof or both) and the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; fees and costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under this Agreement; the costs of the Authority, the City or any designee of either the Authority or the City of complying with the disclosure provisions of the Act, the Continuing Disclosure Agreement and this Agreement, including those related to public inquiries regarding the Special Tax and disclosures to Bondowners and the Original Purchaser; the costs of the Authority, the City or any designee of either the Authority or the City related to an appeal of the Special Tax; any amounts required to be rebated to the federal government in order for the Authority to comply with Section 5.13; an allocable share of the salaries of the City staff directly related to the foregoing and a proportionate amount of City general administrative overhead related thereto. Administrative Expenses shall also include amounts advanced by the Authority or the City for any administrative purpose of the District, including costs related to prepayments of Special Taxes, recordings related to such prepayments and satisfaction of Special Taxes, amounts advanced to -3- ensure compliance with Section 5.13, administrative costs related to the administration of any joint community facilities agreement regarding the District, and the costs of commencing and pursuing foreclosure of delinquent Special Taxes. "Administrative Expense Fund" means the fund by that name established by Section 4.07(A) hereof. "Agreement" means this Fiscal Agent Agreement, as it may be amended or supplemented from time to time by any Supplemental Agreement adopted pursuant to the provisions hereof. "Annual Debt Service" means, for each Bond Year, the sum of (i) the interest due on the Outstanding Bonds in such Bond Year, assuming that the Outstanding Bonds are retired as scheduled (including by reason of the provisions of Section 2.03(A)(ii) providing for mandatory sinking payments), and (ii) the principal amount of the Outstanding Bonds due in such Bond Year (including any mandatory sinking payment due in such Bond Year pursuant to Section 2.03(A)(ii)). "Auditor" means the auditor/controller of the County. "Authori " means the Temecula Public Financing Authority and any successor thereto. "Authority Attorney" means any attorney or firm of attorneys employed by the Authority or the City in the capacity of general counsel to the Authority. "Authorized Officer" means the Chairperson, Executive Director, Treasurer, Secretary or any other officer or employee authorized by the Board of Directors of the Authority or by an Authorized Officer to undertake the action referenced in this Agreement as required to be undertaken by an Authorized Officer. 'Bond Counsel' means (i) Quint & Thimmig LLP, or (ii) any other attorney or firm of attorneys acceptable to the Authority and nationally recognized for expertise in rendering opinions as to the legality and tax-exempt status of securities issued by public entities. "Bond Fund" means the fund by that name established by Section 4.05(A) hereof. "Bond Register" means the books for the registration and transfer of Bonds maintained by the Fiscal Agent under Section 2.08 hereof. "Bond Year" means the one-year period beginning on September 2nd in each year and ending on September 1st in the following year, except that the first Bond Year shall begin on the Closing Date and end on September 1, 2005. "Bonds" means the Series 2004 Bonds, and, if the context requires, any Parity Bonds, at any time Outstanding under this Agreement or any Supplemental Agreement. -4- "Business Day" means any day other than (i) a Saturday or a Sunday, or (ii) a day on which banking institutions in the state in which the Fiscal Agent has its principal corporate trust office are authorized or obligated by law or executive order to be closed. "CDIAC" means the California Debt and Investment Advisory Commission of the office of the State Treasurer of the State of California or any successor agency or bureau thereto. "Cavitalized Interest Account" means the account by that name established within the Bond Fund by Section 4.05(A) hereof. "gty" means the City of Temecula, California. "Closing Date" means September 1, 2004, being the date upon which there is a physical delivery of the Series 2004 Bonds in exchange for the amount representing the purchase price of the Series 2004 Bonds by the Original Purchaser. "Code" means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the Bonds, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Code. "Continuing Disclosure Agreement" shall mean that certain Continuing Disclosure Agreement executed by the Authority and the Fiscal Agent on the Closing Date, as originally executed and as it may be amended from time to time in accordance with the terms thereof. "Costs of Issuance" means items of expense payable or reimbursable directly or indirectly by the Authority or the City and related to the authorization, sale and issuance of the Bonds, which items of expense shall include, but not be limited to, printing costs, costs of reproducing and binding documents, closing costs, filing and recording fees, initial fees and charges of the Fiscal Agent including its first annual administration fee, expenses incurred by the City or the Authority in connection with the issuance of the Bonds and the establishment of the District, special tax consultant fees and expenses, preliminary engineering fees and expenses, Bond (underwriter's) discount, legal fees and charges, including bond counsel, disclosure counsel, financial consultants' fees, charges for execution, transportation and safekeeping of the Bonds, landowner expenses related to the District formation, City costs related to the District formation, and other costs, charges and fees in connection with the foregoing. hereof. "Costs of Issuance Fund" means the fund by that name established by Section 4.03(A) "Coup " means the County of Riverside, California. "Debt Service" means the scheduled amount of interest and amortization of principal payable by reason of Section 2.03(A)(ii) on the Series 2004 Bonds and the scheduled amount of interest and amortization of principal payable on any Parity Bonds during the period of -5- computation, excluding amounts scheduled during such period which relate to principal which has been retired before the beginning of such period. "Depositor " means (a) initially, DTC, and (b) any other Securities Depository acting as Depository pursuant to Section 2.13. "District" means the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II), formed by the Authority under the Act and the Resolution of Formation. "Fair Market Value" means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arms length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of section 1273 of the Code) and, otherwise, the term "Fair Market Value" means the acquisition price in a bona fide arm's length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security --State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) the investment is the Local Agency Investment Fund of the State of California but only if at all times during which the investment is held its yield is reasonably expected to be equal to or greater than the yield on a reasonably comparable direct obligation of the United States. "Federal Securities" means any of the following which are non -callable and which at the time of investment are legal investments under the laws of the State of California for funds held by the Fiscal Agent: (i) direct general obligations of the United States of America (including obligations issued or held in book entry form on the books of the United States Department of the Treasury) and obligations, the payment of principal of and interest on which are directly or indirectly guaranteed by the United States of America, including, without limitation, such of the foregoing which are commonly referred to as "stripped" obligations and coupons; or (ii) any of the following obligations of the following agencies of the United States of America: (a) direct obligations of the Export -Import Bank, (b) certificates of beneficial ownership issued by the Farmers Home Administration, (c) participation certificates issued by the General Services Administration, (d) mortgage -backed bonds or pass -through obligations issued and guaranteed by the Government National Mortgage Association, (e) project notes issued by the United States Department of Housing and Urban Development, and (f) public housing notes and bonds guaranteed by the United States of America. "Fiscal Agent" means the Fiscal Agent appointed by the Authority and acting as an independent fiscal agent with the duties and powers herein provided, its successors and assigns, and any other corporation or association which may at any time be substituted in its place, as provided in Section 7.01. e� "Fiscal Year" means the twelve-month period extending from July 1 in a calendar year to June 30 of the succeeding year, both dates inclusive. "Harveston" means Harveston, LLC, a Delaware limited liability company, and any successor thereto as the "Developer" under the Acquisition Agreement. "Improvement Fund" means the fund by that name created by and held by the Fiscal Agent pursuant to Section 4.02(A) hereof. "Independent Financial Consultant" means any consultant or firm of such consultants appointed by the Authority, the City or the Treasurer, and who, or each of whom: (i) has experience in matters relating to the issuance and/or administration of bonds under the Act; (ii) is in fact independent and not under the domination of the Authority; (iii) does not have any substantial interest, direct or indirect, with or in the Authority, or any owner of real property in the District, or any real property in the District; and (iv) is not connected with the City or the Authority as an officer or employee of the City or the Authority, but who may be regularly retained to make reports to the City or the Authority. "Information Services" means Financial Information, hic.'s "Daily Called Bond Service", 30 Montgomery Street, 10th Floor, Jersey City, New Jersey 07302, Attention: Editor; Kenny Information Services' "Called Bond Service", 65 Broadway, 16th Floor, New York, New York 10006; Moody's Investors Service "Municipal and Government", 99 Church Street, New York, New York 10007, Attention: Municipal News Reports; Standard & Poor's Corporation "Called Bond Record", 25 Broadway, 3rd Floor, New York, New York 10004; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such services providing information with respect to called bonds as the Authority may designate in an Officer's Certificate delivered to the Fiscal Agent. "Interest Payment Dates" means March 1 and September 1 of each year, commencing March 1, 2005. "Maximum Annual Debt Service" means the largest Annual Debt Service for any Bond Year after the calculation is made through the final maturity date of any Outstanding Bonds. "Moody's" means Moody's Investors Service, and any successor thereto. "Officer's Certificate" means a written certificate of the Authority signed by an Authorized Officer of the Authority. "Ordinance" means any ordinance of the Authority levying the Special Taxes. "Original Purchaser" means Stone & Youngberg LLC, the first purchaser of the Series 2004 Bonds from the Authority. "Outstanding " when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 8.04) all Bonds except: (i) Bonds theretofore canceled by the Fiscal Agent or surrendered to the Fiscal Agent for cancellation; (ii) Bonds paid or deemed to have been paid within the meaning of Section 9.03; and (iii) Bonds in lieu of or in substitution -7- for which other Bonds shall have been authorized, executed, issued and delivered by the Authority pursuant to this Agreement or any Supplemental Agreement. "Owner" or "Bondowner " means any person who shall be the registered owner of any Outstanding Bond. "Parity Bonds" means bonds issued by the Authority for the District on a parity with any then Outstanding Bonds pursuant to Section 2.14 hereof. "Participating Underwriter" shall have the meaning ascribed thereto in the Continuing Disclosure Agreement. "Permitted Investments" means any of the following, but only to the extent that the same are acquired at Fair Market Value: (a) Federal Securities. (b) Time certificates of deposit or negotiable certificates of deposit issued by a state or nationally chartered bank (including the Fiscal Agent and its affiliates) or trust company, or a state or federal savings and loan association; provided, that the certificates of deposit shall be one or more of the following: continuously and fully insured by the Federal Deposit Insurance Corporation, and/or continuously and fully secured by securities described in subdivision (a) of this definition of Permitted Investments which shall have a market value, as determined on a marked -to -market basis calculated at least weekly, and exclusive of accrued interest, of not less than 102 percent of the principal amount of the certificates on deposit. (c) Commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided by either Moody's or S&P, which commercial paper is limited to issuing corporations that are organized and operating within the United States of America and that have total assets in excess of five hundred million dollars ($500,000,000) and that have an "A" or higher rating for the issuer's debentures, other than commercial paper, by either Moody's or S&P, provided that purchases of eligible commercial paper may not exceed 180 days' maturity nor represent more than 10 percent of the outstanding commercial paper of an issuing corporation. (d) A repurchase agreement with a state or nationally charted bank or trust company or a national banking association or government bond dealer reporting to, trading with, and recognized as a primary dealer by the Federal Reserve Bank of New York, provided that all of the following conditions are satisfied: (1) the agreement is secured by any one or more of the securities described in subdivision (a) of this definition of Permitted Investments, (2) the underlying securities are required by the repurchase agreement to be held by a bank, trust company, or primary dealer having a combined capital and surplus of at least one hundred million dollars ($100,000,000) and which is independent of the issuer of the repurchase agreement, and (3) the underlying securities are maintained at a market value, as determined on a marked -to -market basis calculated at least weekly, of not less than 103 percent of the amount so invested. In (e) An investment agreement or guaranteed investment contract with, or guaranteed by, a financial institution (not including any insurance company) the long- term unsecured obligations of which are rated "AA" or better by Moody's and S&P at the time of initial investment. (f) The Local Agency Investment Account of the State Treasurer of the State of California as permitted by the State Treasurer pursuant to Section 16429.1 of the California Government Code. (g) Investments in a money market account (including any accounts of the Fiscal Agent or its affiliates) rated in the highest rating category by Moody's or S&P. "Princilal Office" means the principal corporate trust office of the Fiscal Agent set forth in Section 9.06, except for the purpose of maintenance of the registration books and presentation of Bonds for payment, transfer or exchange, such term shall mean the office at which the Fiscal Agent conducts its corporate agency business, or such other or additional offices as may be designated by the Fiscal Agent. "Project„ means the facilities eligible to be financed by the District, as more particularly described in the Resolution of Formation. "Record Date" means the fifteenth day of the month next preceding the month of the applicable Interest Payment Date, whether or not such day is a Business Day. "Refunding Bonds" means bonds issued by the Authority for the District the net proceeds of which are used to refund all or a portion of the then Outstanding Bonds; provided that the debt service on the Refunding Bonds in any Bond Year is not in excess of the debt service on the Bonds being refunded and the final maturity of the Refunding Bonds is not later than the final maturity of the Bonds being refunded. "Refunding Fund" means the fund by that name established pursuant to Section 4.08(A). "Reserve Fund" means the fund by that name established pursuant to Section 4.04(A) hereof. "Reserve Requirement" means, as of any date of calculation an amount equal to the least of (i) the then Maximum Annual Debt Service, (ii) one hundred twenty-five percent (125%) of the then average Annual Debt Service, or (iii) ten percent (10%) of the then Outstanding principal amount of the Bonds. The Reserve Requirement as of the Closing Date is "Resolution" means Resolution No. TPFA 04-J adopted by the Board of Directors of the Authority on August 10, 2004. "Resolution of Formation" means Resolution No. TPFA 03-27, adopted by the Board of Directors of the Authority on November 25, 2003. 10 "Resolution of Intention" means Resolution No. TPFA 03-20, adopted by the Board of Directors of the Authority on October 22, 2003. "S&P" means Standard & Poor's Ratings Service, a division of McGraw-Hill, and any successor thereto. "Securities Depositories" means The Depository Trust Company, 55 Water Street, 50' Floor, New York, New York 10041-0099, Attention: Call Notification Department, Fax (212) 855- 7232; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such other securities depositories as the Authority may designate in an Officer's Certificate delivered to the Fiscal Agent. "Series 2004 Bonds" means the Bonds so designated and authorized to be issued under Section 2.01 hereof. "Special Tax Fund" means the fund by that name established by Section 4.06(A) hereof. "Special Tax Preayments" means the proceeds of any Special Tax prepayments received by the Authority, as calculated pursuant to the Rate and Method of Apportionment of the Special Taxes for the District, less any administrative fees or penalties collected as part of any such prepayment. "Special Tax Prepayments Account" means the account by that name established within the Bond Fund by Section 4.05(A) hereof. "5pecial Tax Revenues" means the proceeds of the Special Taxes received by the Authority, including any scheduled payments and any prepayments thereof, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes to the amount of said lien and interest thereon. "Special Tax Revenues' does not include any penalties collected in connection with delinquent Special Taxes. "Special Taxes" means the special taxes levied within the District pursuant to the Act, the Ordinance and this Agreement. "Supplemental Agreement" means an agreement the execution of which is authorized by a resolution which has been duly adopted by the Authority under the Act and which agreement is amendatory of or supplemental to this Agreement, but only if and to the extent that such agreement is specifically authorized hereunder. "Tax Consultant" means Albert A. Webb Associates or another independent financial or tax consultant retained by the Authority or the City for the purpose of computing the Special Taxes. "Treasurer" means the Treasurer of the Authority or such other officer or employee of the Authority performing the functions of the chief financial officer of the Authority. t0- ARTICLE II THEBONDS Section 2.01. Principal Amount; Designation. Bonds in the aggregate principal amount of Five Million Five Hundred Thousand Dollars ($5,500,000) are hereby authorized to be issued by the Authority for the District under and subject to the terms of the Resolution and this Agreement, the Act and other applicable laws of the State of California. The Series 2004 Bonds shall be designated as the "Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004," and shall be in the initial principal amount of $ Section 2.02. Terms of the Series 2004 Bonds. (A) Form; Denominations. The Series 2004 Bonds shall be issued as fully registered Bonds without coupons in the denomination of $5,000 or any integral multiple in excess thereof. (B) Date of Series 2004 Bonds. The Series 2004 Bonds shall be dated the Closing Date. (C) CUSIP Identification Numbers. "CUSIP" identification numbers shall be imprinted on the Bonds, but such numbers shall not constitute a part of the contract evidenced by the Bonds and any error or omission with respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and pay for the Bonds. hi addition, failure on the part of the Authority or the Fiscal Agent to use such CUSIP numbers in any notice to Owners shall not constitute an event of default or any violation of the Authority's contract with such Owners and shall not impair the effectiveness of any such notice. (D) Maturities. Interest Rates. The Series 2004 Bonds shall mature and become payable on September 1 in each of the years, and shall bear interest at the rates per annum as follows: -11- Maturity Date (September 1) Principal Amount Interest Rate [to come] (E) Interest. The Bonds shall bear interest at the rates set forth above payable on the Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. Each Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Bond Date; provided, however, that if at the time of authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. (F) Method of Payment. Interest on the Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed on the Interest Payment Dates by first class mail to the registered Owner thereof at such registered Owner's address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer (i) to the Depository (so long as the Bonds are in book -entry form pursuant to Section 2.13), or (ii) to an account within the United States made on such Interest Payment Date upon written instructions of any Owner of $1,000,000 or more in aggregate principal amount of Bonds received before the applicable Record Date, which instructions shall continue in effect until revoked in writing, or until such Bonds are transferred to a new Owner. The principal of the Bonds and any premium on the Bonds are payable by check in lawful money of the United States of America upon surrender of the Bonds at the Principal Office of the Fiscal Agent. All -12- Bonds paid by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the canceled Bonds and issue a certificate of destruction thereof to the Authority upon the Authority's request. Section 2.03. Redemption. (A) Redemption Dates. (i) Optional Redemption. The Series 2004 Bonds maturing on and after September 1, _ are subject to optional redemption prior to their stated maturity on any Interest Payment Date on or after September 1, as a whole, or in part among maturities so as to maintain substantially level debt service on the Bonds and by lot within a maturity, at a redemption price (expressed as a percentage of the principal amount of the Series 2004 Bonds to be redeemed), as set forth below, together with accrued interest thereon to the date fixed for redemption: Redemption Dates Redemption Prices September 1, _ and March 1, _ % September 1, _ and any Interest Payment Date thereafter (ii) Mandatory Sinking Payment Redemption. The Series 2004 Bonds maturing on September 1, are subject to mandatory sinking payment redemption in part on September 1, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as follows: Redemption Date (September 1) Sinking Payments [to come] The Series 2004 Bonds maturing on September 1, are subject to mandatory sinking payment redemption in part on September 1, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as follows: -13- Redemption Date (September 1) Sinking Payments [to come] The amounts in the foregoing tables shall be reduced to the extent practicable so as to maintain level debt service on the Series 2004 Bonds, as a result of any prior partial redemption of the Series 2004 Bonds pursuant to Section 2.03(A)(i) above or Section 2.03(A)(iii) below, as specified in writing by the Treasurer to the Fiscal Agent. (iii) Redemption From Special Tax Prepayments. Special Tax Prepayments and any corresponding transfers from the Reserve Fund pursuant to Section 4.05(B)(ii) and Section 4.04(F), respectively, shall be used to redeem Series 2004 Bonds on the next Interest Payment Date for which notice of redemption can timely be given under Section 2.03(D), by lot and allocated among maturities of the Series 2004 Bonds so as to maintain substantially level debt service on the Bonds, at a redemption price (expressed as a percentage at the principal amount of the Bonds to be redeemed), as set forth below, together with accrued interest to the date fixed for redemption: Redemption Dates RedemRttion Prices Any Interest Payment Date from March 1, 2005 to % and including March 1, _ September 1, _ and any Interest Payment Date thereafter (B) Notice to Fiscal Agent. The Authority shall give the Fiscal Agent written notice of its intention to redeem Series 2004 Bonds pursuant to subsection (A)(i) or (A)(iii) not less than forty-five (45) days prior to the applicable redemption date, or such lesser number of days as shall be consented to by the Fiscal Agent. (C) Purchase of Bonds in Lieu of Redemption. hi lieu of redemption under Section 2.03(A), moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding Series 2004 Bonds, upon the filing with the Fiscal Agent of an Officer's Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer's Certificate may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase and any premium which would otherwise be due if such Bonds were to be redeemed in accordance with this Agreement. (D) Redemption Procedure by Fiscal Agent. The Fiscal Agent shall cause notice of any redemption to be mailed by first class mail, postage prepaid, at least thirty (30) days but not more than sixty (60) days prior to the date fixed for redemption, to the Original Purchaser, to the Securities Depositories, to one or more Information Services, and to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the -14- Bond registration books in the Principal Office of the Fiscal Agent; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds. Such notice shall state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the CUSIP numbers and Bond numbers of the Bonds to be redeemed by giving the individual CUSIP number and Bond number of each Bond to be redeemed or shall state that all Bonds between two stated Bond numbers, both inclusive, are to be redeemed or that all of the Bonds of one or more maturities have been called for redemption, shall state as to any Bond called in part the principal amount thereof to be redeemed, and shall require that such Bonds be then surrendered at the Principal Office of the Fiscal Agent for redemption at the said redemption price, and shall state that further interest on such Bonds will not accrue from and after the redemption date. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, of the Bonds being redeemed with the proceeds of such check or other transfer. Whenever provision is made in this Agreement for the redemption of less than all of the Bonds or any given portion thereof, the Fiscal Agent shall select the Bonds to be redeemed, from all Bonds or such given portion thereof not previously called for redemption, among maturities as directed in writing by the Treasurer (who shall specify Bonds to be redeemed so as to maintain, as much as practicable, the same debt service profile for the Bonds as in effect prior to such redemption, unless otherwise specified herein), and by lot within a maturity in any manner which the Fiscal Agent deems appropriate. Upon surrender of Bonds redeemed in part only, the Authority shall execute and the Fiscal Agent shall authenticate and deliver to the registered Owner, at the expense of the Authority, a new Bond or Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds. (E) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the Bonds so called for redemption shall have been deposited in the Bond Fund, such Bonds so called shall cease to be entitled to any benefit under this Agreement other than the right to receive payment of the redemption price, and no interest shall accrue thereon on or after the redemption date specified in such notice. All Bonds redeemed and purchased by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the canceled Bonds and issue a certificate of destruction thereof to the Authority. Section 2.04. Form of Bonds. The Series 2004 Bonds, the form of Fiscal Agent's certificate of authentication and the form of assignment, to appear thereon, shall be substantially in the forms, respectively, set forth in Exhibit A attached hereto and by this -15- reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Agreement, the Resolution and the Act. Section 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the Authority by the manual or facsimile signatures of its Chairperson and Secretary who are in office on the date of adoption of this Agreement or at any time thereafter, and the seal of the Authority shall be impressed, imprinted or reproduced by facsimile signature thereon. If any officer whose signature appears on any Bond ceases to be such officer before delivery of the Bonds to the owner, such signature shall nevertheless be as effective as if the officer had remained in office until the delivery of the Bonds to the owner. Any Bond may be signed and attested on behalf of the Authority by such persons as at the actual date of the execution of such Bond shall be the proper officers of the Authority although at the nominal date of such Bond any such person shall not have been such officer of the Authority. Only such Bonds as shall bear thereon a certificate of authentication in substantially the form set forth in Exhibit A, executed and dated by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of authentication of the Fiscal Agent shall be conclusive evidence that the Bonds registered hereunder have been duly authenticated, registered and delivered hereunder and are entitled to the benefits of this Agreement. Section 2.06. Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred, upon the books required to be kept pursuant to the provisions of Section 2.08 by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form acceptable to the Fiscal Agent. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the Authority. The Fiscal Agent shall collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer. Whenever any Bond or Bonds shall be surrendered for transfer, the Authority shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds, for like aggregate principal amount of authorized denomination(s). No transfers of Bonds shall be required to be made (i) fifteen days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond after such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding Interest Payment Date. Section 2.07. Exchange of Bonds. Bonds may be exchanged at the Principal Office of the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same series and maturity. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such exchange shall be paid by the Authority. The Fiscal Agent shall collect from the Owner requesting such exchange any tax or other governmental charge required to be paid with respect to such exchange. No exchanges of Bonds shall be required to be made (i) fifteen days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond S -9 after such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding Interest Payment Date. Section 2.08. Bond Register. The Fiscal Agent will keep or cause to be kept, at its Principal Office sufficient books for the registration and transfer of the Bonds, which books shall show the series number, date, amount, rate of interest and last known Owner of each Bond and shall at all times be open to inspection by the Authority during regular business hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the ownership of the Bonds as hereinbefore provided. The Authority and the Fiscal Agent will treat the Owner of any Bond whose name appears on the Bond register as the absolute Owner of such Bond for any and all purposes, and the Authority and the Fiscal Agent shall not be affected by any notice to the contrary. The Authority and the Fiscal Agent may rely on the address of the Bondowner as it appears in the Bond register for any and all purposes. Section 2.09. Temporary Bonds. The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such authorized denominations as may be determined by the Authority, and may contain such reference to any of the provisions of this Agreement as may be appropriate. Every temporary Bond shall be executed by the Authority upon the same conditions and in substantially the same manner as the definitive Bonds. If the Authority issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange for the definitive Bonds at the Principal Office of the Fiscal Agent or at such other location as the Fiscal Agent shall designate, and the Fiscal Agent shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits under to this Agreement as definitive Bonds authenticated and delivered hereunder. Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become mutilated, the Authority, at the expense of the Owner of said Bond, shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent shall be canceled by it and destroyed by the Fiscal Agent who shall deliver a certificate of destruction thereof to the Authority. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and indemnity for the Authority and the Fiscal Agent satisfactory to the Fiscal Agent shall be given, the Authority, at the expense of the Owner, shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen. The Authority may require payment of a sum not exceeding the actual cost of preparing each new Bond delivered under this Section and of the expenses which may be incurred by the Authority and the Fiscal Agent for the preparation, execution, authentication and delivery. Any Bond delivered under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the Authority whether or not the Bond -17- so alleged to be lost, destroyed or stolen is at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to this Agreement. Section 2.11. Limited Obligation. All obligations of the Authority under this Agreement and the Bonds shall be special obligations of the Authority, payable solely from the Special Tax Revenues and the funds pledged therefore hereunder. Neither the faith and credit nor the taxing power of the Authority (except to the limited extent set forth herein) or the State of California or any political subdivision thereof is pledged to the payment of the Bonds. The City has no obligations whatsoever under this Agreement or otherwise with respect to the Bonds. Section 2.12. No Acceleration. The principal of the Bonds shall not be subject to acceleration hereunder. Nothing in this Section shall in any way prohibit the redemption of Bonds under Section 2.03 hereof, or the defeasance of the Bonds and discharge of this Agreement under Section 9.03 hereof. Section 2.13. Book -Entry System. DTC shall act as the initial Depository for the Bonds. One Bond for each maturity of the Bonds shall be initially executed, authenticated, and delivered as set forth herein with a separate fully registered certificate (in print or typewritten form). Upon initial execution, authentication, and delivery, the ownership of the Bonds shall be registered in the Bond Register kept by the Fiscal Agent for the Bonds in the name of Cede & Co., as nominee of DTC or such nominee as DTC shall appoint in writing. The representatives of the City and the Fiscal Agent are hereby authorized to take any and all actions as may be necessary and not inconsistent with this Agreement to qualify the Bonds for the Depository's book -entry system, including the execution of the Depository's required representation letter. With respect to Bonds registered in the Bond Register in the name of Cede & Co., as nominee of DTC, neither the City nor the Fiscal Agent shall have any responsibility or obligation to any broker -dealer, bank, or other financial institution for which DTC holds Bonds as Depository from time to time (the "DTC Participants") or to any person for which a DTC Participant acquires an interest in the Bonds (the "Beneficial Owners"). Without limiting the immediately preceding sentence, neither the City nor the Fiscal Agent shall have any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant, any Beneficial Owner, or any other person, other than DTC, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository of the beneficial interests in the Bonds to be redeemed in the event the City elects to redeem the Bonds in part, (iv) the payment to any DTC Participant, any Beneficial Owner, or any other person, other than DTC, of any amount with respect to the principal of or interest on the Bonds, or (v) any consent given or other action taken by the Depository as Owner of the Bonds. Except as set forth above, the Fiscal Agent may treat as and deem DTC to be the absolute Owner of each Bond for which DTC is acting as Depository for the purpose of payment of the principal of and interest on such Bonds, for the purpose of giving notices of redemption and other matters with respect to such Bonds, for the purpose of registering LEM transfers with respect to such Bonds, and for all purposes whatsoever. The Fiscal Agent shall pay all principal of and interest on the Bonds only to or upon the order of the Owners as shown on the Bond Register, and all such payments shall be valid and effective to fully satisfy and discharge all obligations with respect to the principal of and interest on the Bonds to the extent of the sums or sums so paid. No person other than an Owner, as shown on the Bond Register, shall receive a physical Bond. Upon delivery by DTC to the Fiscal Agent of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the transfer provisions in Section 2.06 hereof, references to "Cede & Co." in this Section 2.13 shall refer to such new nominee of DTC. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the Fiscal Agent during any time that the Bonds are Outstanding, and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of DTC with respect to the Bonds if it determines that DTC is unable to discharge its responsibilities with respect to the Bonds or that continuation of the system of book -entry transfers through DTC is not in the best interest of the Beneficial Owners, and the City shall mail notice of such termination to the Fiscal Agent. Upon the termination of the services of DTC as provided in the previous paragraph, and if no substitute Depository willing to undertake the functions hereunder can be found which is willing and able to undertake such functions upon reasonable or customary terms, or if the City determines that it is in the best interest of the Beneficial Owners of the Bonds that they be able to obtain certificated Bonds, the Bonds shall no longer be restricted to being registered in the Bond Register of the Fiscal Agent in the name of Cede & Co., as nominee of DTC, but may be registered in whatever name or name the Owners shall designate at that time, in accordance with Section 2.06. To the extent that the Beneficial Owners are designated as the transferee by the Owners, in accordance with Section 2.06, the Bonds will be delivered to such Beneficial Owners as soon as practicable. Section 2.14. Issuance of Parity Bonds. The Authority may issue bonds (the "Parity Bonds"), in addition to the Series 2004 Bonds authorized under Section 2.01 hereof, by means of a Supplemental Agreement and without the consent of any Bondowners, upon compliance with the provisions of this Section 2.14. Any such Parity Bonds shall constitute Bonds hereunder and shall be secured by alien on the Special Tax Revenues and funds pledged for the payment of the Bonds hereunder on a parity with all other Bonds Outstanding hereunder. The Authority may issue the Parity Bonds subject to the following specific conditions precedent: (A) Current Compliance. The Authority shall be in compliance on the date of issuance of the Parity Bonds with all covenants set forth in this Agreement and all Supplemental Agreements. (B) Payment Dates; Level Debt Service. The Supplemental Agreement providing for the issuance of such Parity Bonds shall provide that interest thereon shall -19- be payable on March 1 and September 1, and principal thereof shall be payable on September 1 in any year in which principal is payable (provided that there shall be no requirement that any Parity Bonds pay interest on a current basis). (C) Funds and Accounts; Reserve Fund Deposit. The Supplemental Agreement providing for the issuance of such Parity Bonds may provide for the establishment of separate funds and accounts, and shall provide for a deposit to the Reserve Fund in an amount necessary so that the amount on deposit therein, following the issuance of such Parity Bonds, is equal to the Reserve Requirement. (D) Other Requirements. The Parity Bonds must be Refunding Bonds. (E) Officer's Certificate. The Authority shall deliver to the Fiscal Agent an Officer's Certificate certifying that the conditions precedent to the issuance of such Parity Bonds set forth in subsections (A), (B), (C) and (D) of this Section 2.14 have been satisfied. Nothing in this Section 2.14 shall prohibit the Authority from issuing bonds or otherwise incurring debt secured by a pledge of Special Tax Revenues subordinate to the pledge thereof under Section 3.02 of this Agreement. -20- ARTICLE III ISSUANCE OF BONDS Section 3.01. Issuance and Delivery of Series 2004 Bonds. At any time after the execution of this Agreement, the Authority may issue the Series 2004 Bonds for the District in the aggregate principal amount set forth in Section 2.01 and deliver the Series 2004 Bonds to the Original Purchaser. The Authorized Officers of the Authority are hereby authorized and directed to deliver any and all documents and instruments necessary to cause the issuance of the Series 2004 Bonds in accordance with the provisions of the Act, the Resolution and this Agreement, to authorize the payment of Costs of Issuance and costs of the Project by the Fiscal Agent from the proceeds of the Series 2004 Bonds and to do and cause to be done any and all acts and things necessary or convenient for delivery of the Series 2004 Bonds to the Original Purchaser. Section 3.02. Pledge of Special Tax Revenues. The Bonds shall be secured by a first pledge (which pledge shall be effected in the manner and to the extent herein provided) of all of the Special Tax Revenues and all moneys deposited in the Bond Fund (including the Special Tax Prepayments Account and the Capitalized Interest Account therein), the Reserve Fund and, until disbursed as provided herein, in the Special Tax Fund. The Special Tax Revenues and all moneys deposited into said funds (except as otherwise provided herein) are hereby dedicated to the payment of the principal of, and interest and any premium on, the Bonds as provided herein and in the Act until all of the Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose in accordance with Section 9.03. Amounts in the Administrative Expense Fund, the Improvement Fund and the Costs of Issuance Fund are not pledged to the repayment of the Bonds. The Project financed with the proceeds of the Bonds are not in any way pledged to pay the Debt Service on the Bonds. Any proceeds of condemnation or destruction of any portion of the Project are not pledged to pay the Debt Service on the Bonds and are free and clear of any lien or obligation imposed hereunder. Section 3.03. Validity of Bonds. The validity of the authorization and issuance of the Bonds shall not be dependent upon the completion of the construction of the Project, or upon the performance by any person of such persons obligation(s) with respect to the Project. -21- ARTICLE IV FUNDS AND ACCOUNTS Section 4.01. Application of Proceeds of Sale of Series 2004 Bonds and Other Moneys. The proceeds of the purchase of the Series 2004 Bonds by the Original Purchaser (being $ ) shall be paid to the Fiscal Agent, who shall forthwith set aside, pay over and deposit such proceeds on the Closing Date as follows: (A) deposit in the Costs of Issuance Fund an amount equal to $ (B) deposit in the Reserve Fund an amount equal to $ (C) deposit in the Capitalized Interest Account of the Bond Fund an amount equal to $ (D) deposit $ to a temporary account on the records of the Fiscal Agent hereby created for such purpose, for immediate transfer to the Treasurer, for deposit by the Treasurer in the Administrative Expense Fund; and (E) deposit in the Improvement Fund an amount equal to $ Section 4.02. Improvement Fund (A) Establishment of Improvement Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Improvement Fund (the "Improvement Fund"). Deposits shall be made to the Improvement Fund as required by Section 4.01(E) and Section 4.04(D). Moneys in the accounts within the Improvement Fund shall be held in trust by the Fiscal Agent for the benefit of the Authority, and shall be disbursed for the payment or reimbursement of costs of the Project. (B) Procedure for Disbursement. Disbursements from the Improvement Fund shall be made by the Fiscal Agent upon receipt of an Officer's Certificate which shall: (i) set forth the amount required to be disbursed, the purpose for which the disbursement is to be made (which shall be for payment of a Project cost or to reimburse expenditures of the Authority, the City or any other party for Project costs previously paid), that the disbursement is a proper expenditure from the Improvement Fund, and the person to which the disbursement is to be paid; and (h) certify that no portion of the amount then being requested to be disbursed was set forth in any Officer's Certificate previously filed requesting a disbursement. Each such Officer's Certificate submitted to the Fiscal Agent as described in this Section 4.02(B) shall be sufficient evidence to the Fiscal Agent of the facts stated therein, and the Fiscal Agent shall have no duty to confirm the accuracy of such facts. (C) Investment. Moneys in the Improvement Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits from the investment and deposit of -22- amounts in the Improvement Fund shall be retained in the Improvement Fund, to be used for the purposes of such fund. (D) Closing of Improvement Fund. Upon the filing of an Officer's Certificate stating that the Project has been completed and that all costs of the Project have been paid, or that any such costs are not required to be paid from the Improvement Fund, the Fiscal Agent shall transfer the amount, if any, remaining in the Improvement Fund to the Bond Fund to be used to pay Debt Service on the Bonds on the next Interest Payment Date, and when no amounts remain on deposit in the Improvement Fund the Improvement Fund shall be closed. Section 4.03. Costs of Issuance Fund. (A) Establishment of Costs of Issuance Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Costs of Issuance Fund (the "Costs of Issuance Fund"), to the credit of which a deposit shall be made as required by Section 4.01(A). Moneys in the Costs of Issuance Fund shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection (B) of this Section for the payment or reimbursement of Costs of Issuance. (B) Disbursement. Amounts in the Costs of Issuance Fund shall be disbursed from time to time to pay Costs of Issuance, as set forth in a requisition containing respective amounts to be paid to the designated payees, signed by the Treasurer and delivered to the Fiscal Agent concurrently with the delivery of the Bonds, or otherwise in an Officer's Certificate delivered to the Fiscal Agent after the Closing Date. The Fiscal Agent shall pay all Costs of Issuance after receipt of an invoice from any such payee which requests payment in an amount which is less than or equal to the amount set forth with respect to such payee pursuant to an Officer's Certificate requesting payment of Costs of Issuance. The Fiscal Agent shall maintain the Costs of Issuance Fund for a period of 90 days from the date of delivery of the Bonds and then shall transfer any moneys remaining therein, including any investment earnings thereon, to the Treasurer for deposit by the Treasurer in the Administrative Expense Fund. (C) Investment. Moneys in the Costs of Issuance Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from said investment shall be retained by the Fiscal Agent in the Costs of Issuance Fund to be used for the purposes of such fund. Section 4.04. Reserve Fund. (A) Establishment of Fund. There is hereby established as a separate fund to be held by the Fiscal Agent the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Reserve Fund (the "Reserve Fund"), to the credit of which a deposit shall be made as required by Section 4.01(B) equal to the Reserve Requirement as of the Closing Date for the Bonds, and deposits shall be made as provided in Section 4.06(B). Moneys in the Reserve Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds as a reserve for the payment of principal of, and interest and any premium on, the Bonds and shall be subject to a lien in favor of the Owners of the Bonds. -23- (B) Use of Reserve Fund. Except as otherwise provided in this Section, all amounts deposited in the Reserve Fund shall be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Bond Fund in the event of any deficiency at any time in the Bond Fund of the amount then required for payment of the principal of, and interest and any premium on, the Bonds or, in accordance with the provisions of this Section, for the purpose of redeeming Bonds from the Bond Fund. (C) Transfer Due to Deficiency in Bond Fund. Whenever transfer is made from the Reserve Fund to the Bond Fund due to a deficiency in the Bond Fund, the Fiscal Agent shall provide written notice thereof to the Treasurer, specifying the amount withdrawn. (D) Transfer of Excess of Reserve Requirement. Whenever, on the Business Day prior to any Interest Payment Date, or on any other date at the request of the Treasurer, the amount in the Reserve Fund exceeds the Reserve Requirement, the Fiscal Agent shall provide written notice to the Treasurer of the amount of the excess and shall transfer an amount equal to the excess from the Reserve Fund to (i) until such time as the Improvement Fund has been closed pursuant to Section 4.02(D), to the Improvement Fund; and (ii) after the Improvement Fund has been closed, the Bond Fund to be used for the payment of interest on the Bonds on the next Interest Payment Date in accordance with Section 4.05. (E) Transfer When Balance Exceeds Outstanding Bonds. Whenever the balance in the Reserve Fund equals or exceeds the amount required to redeem or pay the Outstanding Bonds, including interest accrued to the date of payment or redemption and premium, if any, due upon redemption, the Fiscal Agent shall upon the written direction of the Treasurer transfer the amount in the Reserve Fund to the Bond Fund to be applied, on the next succeeding Interest Payment Date to the payment and redemption, in accordance with Section 2.03 and 4.05, as applicable, of all of the Outstanding Bonds. In the event that the amount so transferred from the Reserve Fund to the Bond Fund exceeds the amount required to pay and redeem the Outstanding Bonds, the balance in the Reserve Fund shall be transferred to the Authority to be used for any lawful purpose of the Authority. Notwithstanding the foregoing, no amounts shall be transferred from the Reserve Fund pursuant to this Section 4.04(E) until after (i) the calculation of any amounts due to the federal government pursuant to Section 5.13 following payment of the Bonds and withdrawal of any such amount from the Reserve Fund for purposes of making such payment to the federal government, and (ii) payment of any fees and expenses due to the Fiscal Agent. (F) Transfer Upon Special Tax Prepays ment. Whenever Special Taxes are prepaid and Bonds are to be redeemed with the proceeds of such prepayment pursuant to Section 2.03(A)(iii), a proportionate amount in the Reserve Fund (determined on the basis of the principal of Bonds to be redeemed, and the original principal of the Bonds) shall be transferred on the Business Day prior to the redemption date by the Fiscal Agent to the Bond Fund to be applied to the redemption of the Bonds pursuant to Section 2.03(A)(iii). The Treasurer shall deliver to the Fiscal Agent an Officer's Certificate specifying any amount to be so transferred, and the Fiscal Agent may rely on any such Officer's Certificate. -24- (G) Transfer to Pay Rebate. Amounts in the Reserve Fund may at any time be used, at the written direction of an Authorized Officer, for purposes of paying any rebate liability under Section 5.13. (H) Investment. Moneys in the Reserve Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from such investment and deposit shall be retained in the Reserve Fund to be used for the purposes thereof, subject to the provisions of Sections 4.04(D) and (E) above. Section 4.05. Bond Fund. (A) Establishment of Bond Fund Capitalized Interest Account and Special Tax Prepayments Account. There is hereby established as a separate fund to be held by the Fiscal Agent, the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Bond Fund (the 'Bond Fund"), to the credit of which deposits shall be made as required by Sections 4.02(D), 4.04(B), 4.04(D), 4.04(E), 4.04(F), and 4.06(B), and any other amounts required to be deposited therein by this Agreement or the Act. There is also hereby created in the Bond Fund, a separate account held by the Fiscal Agent, the Capitalized Interest Account, to the credit of which deposits shall be made under Section 4.01(C). There is also hereby created in the Bond Fund a separate account to be held by the Fiscal Agent, consisting of the Special Tax Prepayments Account, to the credit of which deposits shall be made as provided in Section 4.06(A). Moneys in the Bond Fund and the accounts therein shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds, shall be disbursed for the payment of the principal of, and interest and any premium on, the Bonds as provided below, and, pending such disbursement, shall be subject to a lien in favor of the Owners of the Bonds. (B) Disbursements. (i) Bond Fund Disbursements. On each Interest Payment Date, the Fiscal Agent shall withdraw from the Bond Fund and pay to the Owners of the Bonds the principal, and interest and any premium, then due and payable on the Bonds, including any amounts due on the Bonds by reason of the sinking payments set forth in Section 2.03(A)(ii), or a redemption of the Bonds required by Section 2.03(A)(i), such payments to be made in the priority listed in the second succeeding paragraph. Notwithstanding the foregoing, amounts in the Bond Fund as a result of a transfer pursuant to Section 4.02(D) shall be used to pay the principal of and interest on the Bonds prior to the use of any other amounts in the Bond Fund for such purpose. In the event that amounts in the Bond Fund are insufficient for the purposes set forth in the preceding paragraph, the Fiscal Agent shall withdraw from the Reserve Fund to the extent of any funds therein amounts to cover the amount of such Bond Fund insufficiency. Amounts so withdrawn from the Reserve Fund shall be deposited in the Bond Fund. If, after the foregoing transfers, there are insufficient funds in the Bond Fund to make the payments provided for in the first sentence of the first paragraph of this Section 4.02(B)(i), the Fiscal Agent shall apply the available funds first to the payment of interest on the Bonds, then to the payment of principal due on the Bonds other than by -25- reason of sinking payments, and then to payment of principal due on the Bonds by reason of sinking payments. Any sinking payment not made as scheduled shall be added to the sinking payment to be made on the next sinking payment date. (ii) Special Tax Prepayments Account Disbursements. Moneys in the Special Tax Prepayments Account shall be transferred by the Fiscal Agent to the Bond Fund on the next date for which notice of redemption of Bonds can timely be given under Section 2.03(A)(iii), and notice to the Fiscal Agent can timely be given under Section 2.03(B), and shall be used (together with any amounts transferred pursuant to Section 4.04(F)) to redeem Bonds on the redemption date selected in accordance with Section 2.03. (iii) Capitalized Interest Account Disbursements. Moneys in the Capitalized Interest Account shall be transferred to the Bond Fund on the Business Day prior to each Interest Payment Date, in the amount equal to and to be used for the payment of interest on the Bonds due on the next succeeding Interest Payment Date; provided that no such transfer shall exceed the amount then on deposit in the Capitalized Interest Account. When no amounts remain on deposit in such account, the Capitalized Interest Account shall be closed. (C) Investment. Moneys in the Bond Fund, the Capitalized Interest Account and the Special Tax Prepayments Account shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from the investment and deposit of amounts in the Bond Fund, the Capitalized Interest Account and the Special Tax Prepayments Account shall be retained in the Bond Fund, the Capitalized Interest Account and the Special Tax Prepayments Account, respectively, to be used for purposes of such fund and accounts. Section 4.06. Special Tax Fund. (A) Establishment of Special Tax Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston 11) Special Tax Fund (the "Special Tax Fund"), to the credit of which the Fiscal Agent shall deposit amounts received from or on behalf of the Authority consisting of Special Tax Revenues, and any amounts required by Section 4.07(B) to be deposited therein. The Authority shall promptly remit any such amounts received by it to the Fiscal Agent for deposit by the Fiscal Agent to the Special Tax Fund. Notwithstanding the foregoing, (i) any Special Tax Revenues constituting payment of the portion of the Special Tax levy for Administrative Expenses shall be deposited by the Treasurer in the Administrative Expense Fund, and (ii) any proceeds of Special Tax Prepayments shall be transferred by the Treasurer to the Fiscal Agent for deposit by the Fiscal Agent (as specified in writing by the Treasurer to the Fiscal Agent) directly in the Special Tax Prepayments Account established pursuant to Section 4.05(A). Moneys in the Special Tax Fund shall be held in trust by the Fiscal Agent for the benefit of the Authority and the Owners of the Bonds, shall be disbursed as provided below and, pending disbursement, shall be subject to a lien in favor of the Owners of the Bonds and the Authority. -26- (B) Disbursements. On each Interest Payment Date, the Fiscal Agent shall withdraw from the Special Tax Fund and transfer the following amounts in the following order of priority (i) to the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund and any expected transfers from the Improvement Fund, the Reserve Fund, the Capitalized Interest Account and the Special Tax Prepayments Account to the Bond Fund pursuant to Sections 4.02(D), 4.04(D), (E), and (F), and 4.05(B)(ii) and (iii), such that the amount in the Bond Fund equals the principal (including any sulking payment), premium, if any, and interest due on the Bonds on such Interest Payment Date, and (h) to the Reserve Fund an amount, taking into account amounts then on deposit in the Reserve Fund, such that the amount in the Reserve Fund is equal to the Reserve Requirement. (C) Investment. Moneys in the Special Tax Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from such investment and deposit shall be retained in the Special Tax Fund to be used for the purposes thereof. Section 4.07. Administrative Expense Fund. (A) Establishment of Administrative Expense Fund. There is hereby established as a separate fund to be held by the Treasurer, the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Administrative Expense Fund (the "Administrative Expense Fund"), to the credit of which deposits shall be made as required by Sections 4.01(D), 4.03(B) and 4.06(B). Moneys in the Administrative Expense Fund shall be held in trust by the Treasurer for the benefit of the Authority, and shall be disbursed as provided below. (B) Disbursement. Amounts in the Administrative Expense Fund shall be withdrawn by the Treasurer and paid to the Authority or its order upon receipt by the Treasurer of an Officer's Certificate stating the amount to be withdrawn, that such amount is to be used to pay an Administrative Expense or a Costs of Issuance, and the nature of such Administrative Expense or Costs of Issuance. Amounts transferred from the Costs of Issuance Fund to the Administrative Expense Fund pursuant to Section 4.03(B) shall be separately identified at all times, and shall be expended for purposes of the Administrative Expense Fund prior to the use of amounts transferred to the Administrative Expense Fund from the Special Tax Fund pursuant to Section 4.06(B). Annually, on the last day of each Fiscal Year commencing with the last day of Fiscal Year 2004-2005, the Treasurer shall withdraw any amounts then remaining in the Administrative Expense Fund in excess of $20,000 that have not otherwise been allocated to pay Administrative Expenses incurred but not yet paid, and which are not otherwise encumbered, and transfer such amounts to the Fiscal Agent for deposit by the Fiscal Agent in the Special Tax Fund. (C) Investment. Moneys in the Administrative Expense Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from said investment shall be retained by the Treasurer in the Administrative Expense Fund to be used for the purposes thereof. _27_ ARTICLE V OTHER COVENANTS OF THE AUTHORITY Section 5.01. Punctual Payment. The Authority will punctually pay or cause to be paid the principal of, and interest and any premium on, the Bonds when and as due in strict conformity with the terms of this Agreement and any Supplemental Agreement, and it will faithfully observe and perform all of the conditions covenants and requirements of this Agreement and all Supplemental Agreements and of the Bonds. Section 5.02. Limited Obligation. The Bonds are limited obligations of the Authority on behalf of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in the Bond Fund (including the Special Tax Prepayments Account and the Capitalized Interest Account therein), the Reserve Fund and, until disbursed as provided herein, the Special Tax Fund. Section 5.03. Extension of Time for Payment. In order to prevent any accumulation of claims for interest after maturity, the Authority shall not, directly or indirectly, extend or consent to the extension of the time for the payment of any claim for interest on any of the Bonds and shall not, directly or indirectly, be a party to the approval of any such arrangement by purchasing or funding said claims for interest or in any other manner. In case any such claim for interest shall be extended or funded, whether or not with the consent of the Authority, such claim for interest so extended or funded shall not be entitled, in case of default hereunder, to the benefits of this Agreement, except subject to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest which shall not have so extended or funded. Section 5.04. Against Encumbrances. The Authority will not encumber, pledge or place any charge or lien upon any of the Special Tax Revenues or other amounts pledged to the Bonds superior to or on a parity with the pledge and lien herein created for the benefit of the Bonds, except as permitted by this Agreement. Section 5.05. Books and Records. The Authority will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Authority, in which complete and correct entries shall be made of all transactions relating to the expenditure of amounts disbursed from the Administrative Expense Fund and to the Special Tax Revenues. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Fiscal Agent and the Owners of not less than ten percent (10%) of the principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing. The Fiscal Agent will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Fiscal Agent, in which complete and correct entries shall be made of all transactions relating to the expenditure of amounts disbursed from the Bond Fund (including the Special Tax Prepayments Account and the Capitalized Interest Account therein), the Reserve Fund, the Special Tax Fund, the Improvement Fund and the Costs of Issuance Fund. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Authority and the Owners of not less than ten percent M (10%) of the principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing upon reasonable prior notice. Section 5.06. Protection of Security and Rights of Owners. The Authority will preserve and protect the security of the Bonds and the rights of the Owners, and will warrant and defend their rights against all claims and demands of all persons. From and after the delivery of any of the Bonds by the Authority, the Bonds shall be incontestable by the Authority. Section 5.07. Compliance with Law. The Authority will comply with all applicable provisions of the Act and law in administering the District and completing the acquisition of the Project. Section 5.08. Collection of Special Tax Revenues. The Authority shall comply with all requirements of the Act so as to assure the timely collection of Special Tax Revenues, including without limitation, the enforcement of delinquent Special Taxes. On or within five (5) Business Days of each June 1, the Fiscal Agent shall provide the Treasurer with a notice stating the amount then on deposit in the Bond Fund, the Capitalized Interest Account and the Reserve Fund, and informing the Authority that the Special Taxes may need to be levied pursuant to the Ordinance as necessary to provide for the debt service to become due on the Bonds in the calendar year that commences in the Fiscal Year for which the levy is to be made, and Administrative Expenses and replenishment (if necessary) of the Reserve Fund so that the balance therein equal the Reserve Requirement. The receipt of or failure to receive such notice by the Treasurer shall in no way affect the obligations of the Treasurer under the following two paragraphs. Upon receipt of such notice, the Treasurer shall communicate with the Auditor to ascertain the relevant parcels on which the Special Taxes are to be levied, taking into account any parcel splits during the preceding and then current year. The Treasurer shall effect the levy of the Special Taxes each Fiscal Year in accordance with the Ordinance by each July 15 that the Bonds are outstanding, or otherwise such that the computation of the levy is complete before the final date on which Auditor will accept the transmission of the Special Tax amounts for the parcels within the District for inclusion on the next real property tax roll. Upon the completion of the computation of the amounts of the levy, the Treasurer shall prepare or cause to be prepared, and shall transmit to the Auditor, such data as the Auditor requires to include the levy of the Special Taxes on the next real property tax roll. The Treasurer shall fix and levy the amount of Special Taxes within the District required for the payment of principal of and interest on any outstanding Bonds of the District becoming due and payable during the ensuing year, including any necessary replenishment or expenditure of the Reserve Fund for the Bonds and an amount estimated to be sufficient to pay the Administrative Expenses (including amounts necessary to discharge any obligation under Section 5.13) during such year, taking into account the balances in such funds and in the Special Tax Fund. The Special Taxes so levied shall not exceed the authorized amounts as provided in the proceedings pursuant to the Resolution of Formation. The Special Taxes shall be payable and be collected in the same manner and at the same time and in the same installment as the general taxes on real property are payable, and have the -29- same priority, become delinquent at the same time and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the ad valorem taxes on real property; provided that, pursuant to and in accordance with the Ordinance, the Special Taxes may be collected by means of direct billing of the property owners within the District, in which event the Special Taxes shall become delinquent if not paid when due pursuant to said billing. Section 5.09. Covenant to Foreclose. Pursuant to Section 53356.1 of the Act, the Authority hereby covenants with and for the benefit of the Owners of the Bonds that it will order, and cause to be commenced as hereinafter provided, and thereafter diligently prosecute to judgment (unless such delinquency is theretofore brought current), an action in the superior court to foreclose the lien of any Special Tax or installment thereof not paid when due as provided in the following paragraph. The Treasurer shall notify the Authority Attorney of any such delinquency of which it is aware, and the Authority Attorney shall commence, or cause to be commenced, such proceedings. On or about February 15 and June 15 of each Fiscal Year, the Treasurer shall compare the amount of Special Taxes theretofore levied in the District to the amount of Special Tax Revenues theretofore received by the Authority, and: (A) Individual Delinquencies. If the Treasurer determines that any single parcel subject to the Special Tax in the District is delinquent in the payment of Special Taxes in the aggregate amount of $1,000.00 or more, then the Treasurer shall send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 45 days of such determination, and (if the delinquency remains uncured) foreclosure proceedings shall be commenced by the Authority within 90 days of such determination. Notwithstanding the foregoing, the Treasurer may defer such action if the amount in the Reserve Fund is at least equal to the Reserve Requirement. (B) Aggregate Delinquencies. If the Treasurer determines that (i) the total amount of delinquent Special Tax for the prior Fiscal Year for the entire District, (including the total of delinquencies under subsection (A) above), exceeds 5% of the total Special Tax due and payable for the prior Fiscal Year, or (ii) there are ten (10) or fewer owners of real property within the District, determined by reference to the latest available secured property tax roll of the County, the Treasurer shall notify or cause to be notified property owners who are then delinquent in the payment of Special Taxes (and demand immediate payment of the delinquency) within 45 days of such determination, and the Authority shall commence foreclosure proceedings within 90 days of such determination against each parcel of land in the District with a Special Tax delinquency. The Treasurer and the Authority Attorney, as applicable, are hereby authorized to employ counsel to conduct any such foreclosure proceedings. The fees and expenses of any such counsel (including a charge for Authority staff time) in conducting foreclosure proceedings shall be an Administrative Expense hereunder. Section 5.10. Further Assurances. The Authority will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably -30- necessary or proper to carry out the intention or to facilitate the performance of this Agreement, and for the better assuring and confirming unto the Owners of the rights and benefits provided in this Agreement. Section 5.11. Private Activity Bond Limitations. The Authority shall assure that the proceeds of the Series 2004 Bonds are not so used as to cause the Series 2004 Bonds to satisfy the private business tests of section 141(b) of the Code or the private loan financing test of section 141(c) of the Code. Section 5.12. Federal Guarantee Prohibition. The Authority shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause the Series 2004 Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. Section 5.13. Rebate Requirement. The Authority shall take any and all actions necessary to assure compliance with section 148(f) of the Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the Series 2004 Bonds. If necessary, the Authority may use amounts in the Reserve Fund, amounts on deposit in the Administrative Expense Fund, and any other funds available to the District, including amounts advanced by the Authority or the City, in its respective sole discretion, to be repaid by the District as soon as practicable from amounts described in the preceding clauses, to satisfy its obligations under this Section 5.13. The Treasurer shall take note of any investment of monies hereunder in excess of the yield on the Series 2004 Bonds, and shall take such actions as are necessary to ensure compliance with this Section 5.13, such as increasing the portion of the Special Tax levy for Administration Expenses as appropriate to have funds available in the Administrative Expense Fund to satisfy any rebate liability under this Section 5.13. Section 5.14. No Arbitrage. The Authority shall not take, or permit or suffer to be taken by the Fiscal Agent or otherwise, any action with respect to the proceeds of the Series 2004 Bonds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Series 2004 Bonds would have caused the Series 2004 Bonds to be "arbitrage bonds" within the meaning of section 148 of the Code. Section 5.15. Yield of the Bonds. In determining the yield of the Series 2004 Bonds to comply with Section 5.13 and 5.14 hereof, the Authority will take into account redemption (including premium, if any) in advance of maturity based on the reasonable expectations of the Authority, as of the Closing Date, regarding prepayments of Special Taxes and use of prepayments for redemption of the Bonds, without regard to whether or not prepayments are received or Series 2004 Bonds redeemed. Section 5.16. Maintenance of Tax -Exemption. The Authority shall take all actions necessary to assure the exclusion of interest on the Series 2004 Bonds from the gross income of the Owners of the Series 2004 Bonds to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the Series 2004 Bonds. -31- Section 5.17. Continuing Disclosure to Owners. hi addition to its obligations under Section 9.07, the Authority hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Agreement. Notwithstanding any other provision of this Agreement, failure of the Authority to comply with the Continuing Disclosure Agreement shall not be considered a default hereunder; however, any Participating Underwriter or any holder or Beneficial Owner (as defined in Section 2.13) of the Bonds may take such actions as may be necessary and appropriate to compel performance by the Authority of its obligations thereunder, including seeking mandate or specific performance by court order. An owner of real property in the District as of the Closing Date has also executed a continuing disclosure agreement for the benefit of the holders and beneficial owners of the Bonds. Any Participating Underwriter or holder or beneficial owner may take such actions as may be necessary and appropriate directly against such landowner to compel performance by it of its obligations thereunder, including seeking mandate or specific performance by court order; however the Authority shall have no obligation whatsoever to enforce any obligations under any such agreement. Section 5.18. Reduction of Special Taxes. The Authority covenants and agrees to not consent or conduct proceedings with respect to a reduction in the maximum Special Taxes that may be levied in the District below an amount, for any Fiscal Year, equal to 110% of the aggregate of the debt service due on the Bonds in such Fiscal Year, plus a reasonable estimate of Administrative Expenses for such Fiscal Year. It is hereby acknowledged that Bondowners are purchasing the Bonds in reliance on the foregoing covenant, and that said covenant is necessary to assure the full and timely payment of the Bonds. Section 5.19. Limits on Special Tax Waivers and Bond Tenders. The Authority covenants not to exercise its rights under the Act to waive delinquency and redemption penalties related to the Special Taxes or to declare Special Tax penalties amnesty program if to do so would materially and adversely affect the interests of the owners of the Bonds and further covenants not to permit the tender of Bonds in payment of any Special Taxes except upon receipt of a certificate of an Independent Financial Consultant that to accept such tender will not result in the Authority having insufficient Special Tax revenues to pay the principal of and interest on the Bonds remaining Outstanding following such tender. -32- ARTICLE VI INVESTMENTS, DISPOSITION OF INVESTMENT PROCEEDS, LIABILITY OF THE AUTHORITY Section 6.01. Deposit and Investment of Moneys in Funds. Moneys in any fund or account created or established by this Agreement and held by the Fiscal Agent shall be invested by the Fiscal Agent in Permitted Investments, as directed pursuant to an Officer's Certificate filed with the Fiscal Agent at least two (2) Business Days in advance of the making of such investments. In the absence of any such Officer's Certificate, the Fiscal Agent shall invest, to the extent reasonably practicable, any such moneys in Permitted Investments described in clause (g) of the definition thereof in Section 1.03, which by their terms mature prior to the date on which such moneys are required to be paid out hereunder. The Treasurer shall make note of any investment of funds hereunder in excess of the yield on the Bonds, so that appropriate actions can be taken to assure compliance with Section 5.13 and Section 5.14. Moneys in any fund or account created or established by this Agreement and held by the Treasurer shall be invested by the Treasurer in any Permitted Investment, which in any event by their terms mature prior to the date on which such moneys are required to be paid out hereunder. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account, subject, however, to the requirements of this Agreement for transfer of interest earnings and profits resulting from investment of amounts in funds and accounts. Whenever in this Agreement any moneys are required to be transferred by the Authority to the Fiscal Agent, such transfer may be accomplished by transferring a like amount of Permitted Investments. The Fiscal Agent and its affiliates or the Treasurer may act as sponsor, advisor, depository, principal or agent in the acquisition or disposition of any investment. Neither the Fiscal Agent nor the Treasurer shall incur any liability for losses arising from any investments made pursuant to this Section. The Fiscal Agent shall not be required to determine the legality of any investments. Except as otherwise provided in the next sentence, all investments of amounts deposited in any fund or account created by or pursuant to this Agreement, or otherwise containing gross proceeds of the Bonds (within the meaning of section 148 of the Code) shall be acquired, disposed of, and valued (as of the date that valuation is required by this Agreement or the Code) at Fair Market Value. The Fiscal Agent shall have no duty in connection with the determination of Fair Market Value other than to follow the investment direction of an Authorized Officer in any written direction of any Authorized Officer. Investments in funds or accounts (or portions thereof) that are subject to a yield restriction under the applicable provisions of the Code and (unless valuation is undertaken at least annually) investments in the subaccounts within the Reserve Fund shall be valued at their present value (within the meaning of section 148 of the Code). The Fiscal Agent shall not be liable for verification of the application of such sections of the Code. Investments in any and all funds and accounts may be commingled. gled. in a separate fund or funds for purposes of making, holding and disposing of investments, notwithstanding 19-M provisions herein for transfer to or holding in or to the credit of particular funds or accounts of amounts received or held by the Fiscal Agent or the Treasurer hereunder, provided that the Fiscal Agent or the Treasurer, as applicable, shall at all times account for such investments strictly in accordance with the funds and accounts to which they are credited and otherwise as provided in this Agreement. The Fiscal Agent or the Treasurer, as applicable, shall sell at Fair Market Value, or present for redemption, any investment security whenever it shall be necessary to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund or account to which such investment security is credited and neither the Fiscal Agent nor the Treasurer shall be liable or responsible for any loss resulting from the acquisition or disposition of such investment security in accordance herewith. The Authority acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Authority the right to receive brokerage confirmations of security transactions as they occur, the Authority specifically waives receipt of such confirmations to the extent permitted by law. The Fiscal Agent will furnish the Authority periodic cash transaction statements which include detail for all investment transactions made by the Fiscal Agent hereunder. Section 6.02. Limited Obligation. The Authority's obligations hereunder are limited obligations of the Authority on behalf of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in the Special Tax Fund, the Bond Fund (including the Special Tax Prepayments Account and the Capitalized Interest Account therein) and the Reserve Fund created hereunder. Section 6.03. Liability of Authority. The Authority shall not incur any responsibility in respect of the Bonds or this Agreement other than in connection with the duties or obligations explicitly herein or in the Bonds assigned to or imposed upon it. The Authority shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful default. The Authority shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions covenants or agreements of the Fiscal Agent herein or of any of the documents executed by the Fiscal Agent in connection with the Bonds, or as to the existence of a default or event of default thereunder. hi the absence of bad faith, the Authority, including the Treasurer, may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Authority and conforming to the requirements of this Agreement. The Authority, including the Treasurer, shall not be liable for any error of judgment made in good faith unless it shall be proved that it was negligent in ascertaining the pertinent facts. No provision of this Agreement shall require the Authority to expend or risk its own general funds or otherwise incur any financial liability (other than with respect to the Special Tax Revenues) in the performance of any of its obligations hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. -34- The Authority and the Treasurer may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties. The Authority may consult with counsel, who may be the Authority Attorney, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith. The Authority shall not be bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and his title thereto satisfactory established, if disputed. Whenever in the administration of its duties under this Agreement the Authority or the Treasurer shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the Authority, be deemed to be conclusively proved and established by a certificate of the Fiscal Agent, an Appraiser, an Independent Financial Consultant or a Tax Consultant, and such certificate shall be full warrant to the Authority and the Treasurer for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the Authority or the Treasurer may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable. Section 6.04. Employment of Agents by Authority. In order to perform its duties and obligations hereunder, the Authority and/or the Treasurer may employ such persons or entities as it deems necessary or advisable. The Authority shall not be liable for any of the acts or omissions of such persons or entities employed by it in good faith hereunder, and shall be entitled to rely, and shall be fully protected in doing so, upon the opinions, calculations, determinations and directions of such persons or entities. -35- ARTICLE VII THE FISCAL AGENT Section 7.01. Appointment of Fiscal Agent. U.S. Bank National Association is hereby appointed Fiscal Agent and paying agent for the Bonds. The Fiscal Agent undertakes to perform such duties, and only such duties, as are specifically set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent. Any company into which the Fiscal Agent may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Fiscal Agent may sell or transfer all or substantially all of its corporate trust business, provided such company shall be eligible under the following paragraph of this Section, shall be the successor to such Fiscal Agent without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding. The Authority may at any time remove the Fiscal Agent initially appointed, and any successor thereto, and may appoint a successor or successors thereto, but any such successor shall be a bank, corporation or trust company having a combined capital (exclusive of borrowed capital) and surplus of at least Fifty Million Dollars ($50,000,000), and subject to supervision or examination by federal or state authority. If such bank, corporation or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section 7.01, combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. The Fiscal Agent may at any time resign by giving written notice to the Authority and by giving to the Owners notice by mail of such resignation. Upon receiving notice of such resignation, the Authority shall promptly appoint a successor Fiscal Agent by an instrument in writing. Any resignation or removal of the Fiscal Agent shall become effective upon acceptance of appointment by the successor Fiscal Agent. If no appointment of a successor Fiscal Agent shall be made pursuant to the foregoing provisions of this Section within forty-five (45) days after the Fiscal Agent shall have given to the Authority written notice or after a vacancy in the office of the Fiscal Agent shall have occurred by reason of its inability to act, the Fiscal Agent or any Owner may apply to any court of competent jurisdiction to appoint a successor Fiscal Agent. Said court may thereupon, after such notice, if any, as such court may deem proper, appoint a successor Fiscal Agent. If, by reason of the judgment of any court, or reasonable agency, the Fiscal Agent is rendered unable to perform its duties hereunder, all such duties and all of the rights and powers of the Fiscal Agent hereunder shall be assumed by and vest in the Treasurer of the Authority in trust for the benefit of the Owners. The Authority covenants for the direct benefit of the Owners that its Treasurer in such case shall be vested with all of the rights and powers of the Fiscal Agent hereunder, and shall assume all of the responsibilities and perform all of the -36- duties of the Fiscal Agent hereunder, in trust for the benefit of the Owners of the Bonds. In such event, the Treasurer may designate a successor Fiscal Agent qualified to act as Fiscal Agent hereunder. Section 7.02. Liability of Fiscal Agent. The recitals of facts, covenants and agreements herein and in the Bonds contained shall be taken as statements, covenants and agreements of the Authority, and the Fiscal Agent assumes no responsibility for the correctness of the same, or makes any representations as to the validity or sufficiency of this Agreement or of the Bonds, or shall incur any responsibility in respect thereof, other than in connection with the duties or obligations herein or in the Bonds assigned to or imposed upon it. The Fiscal Agent shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful default. The Fiscal Agent assumes no responsibility or liability for any information, statement or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of the Bonds. In the absence of bad faith, the Fiscal Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Fiscal Agent and conforming to the requirements of this Agreement; but in the case of any such certificates or opinions by which any provision hereof are specifically required to be furnished to the Fiscal Agent, the Fiscal Agent shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Agreement. Except as provided above in this paragraph, Fiscal Agent shall be protected and shall incur no liability in acting or proceeding, or in not acting or not proceeding, in good faith, reasonably and in accordance with the terms of this Agreement, upon any resolution, order, notice, request, consent or waiver, certificate, statement, affidavit, or other paper or document which it shall in good faith reasonably believe to be genuine and to have been adopted or signed by the proper person or to have been prepared and furnished pursuant to any provision of this Agreement, and the Fiscal Agent shall not be under any duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument. The Fiscal Agent shall not be liable for any error of judgment made in good faith unless it shall be proved that the Fiscal Agent was negligent in ascertaining the pertinent facts. No provision of this Agreement shall require the Fiscal Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers. The Fiscal Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement at the request or direction of any of the Owners pursuant to this Agreement unless such Owners shall have offered to the Fiscal Agent reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. The Fiscal Agent may become the owner of the Bonds with the same rights it would have if it were not the Fiscal Agent. The Fiscal Agent shall have no duty or obligation whatsoever to enforce the collection of Special Taxes or other funds to be deposited with it hereunder, or as to the correctness of any -37- amounts received, and its liability shall be limited to the proper accounting for such funds as it shall actually receive. In order to perform its duties and obligations hereunder, the Fiscal Agent may employ such persons or entities as it deems necessary or advisable. The Fiscal Agent shall not be liable for any of the acts or omissions of such persons or entities employed by it in good faith hereunder, and shall be entitled to rely, and shall be fully protected in doing so, upon the opinions, calculations, determinations and directions of such persons or entities. Section 7.03. Information. The Fiscal Agent shall provide to the Authority such information relating to the Bonds and the funds and accounts maintained by the Fiscal Agent hereunder as the Authority shall reasonably request, including but not limited to quarterly statements reporting funds held and transactions by the Fiscal Agent. Section 7.04. Notice to Fiscal Agent. The Fiscal Agent may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, bond or other paper or document believed in good faith by it to be genuine and to have been signed or presented by the proper party or proper parties. The Fiscal Agent may consult with counsel, who may be counsel to the Authority, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith. The Fiscal Agent shall not be bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and his title thereto satisfactorily established, if disputed. Whenever in the administration of its duties under this Agreement the Fiscal Agent shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the Fiscal Agent, be deemed to be conclusively proved and established by an Officer's Certificate, and such certificate shall be full warrant to the Fiscal Agent for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable. Section 7.05. Compensation, Indemnification. The Authority shall pay to the Fiscal Agent from time to time reasonable compensation for all services rendered as Fiscal Agent under this Agreement, and also all reasonable expenses, charges, counsel fees and other disbursements, including those of their attorneys, agents and employees, incurred in and about the performance of their powers and duties under this Agreement, but the Fiscal Agent shall not have a lien therefor on any funds at any time held by it under this Agreement. The Authority further agrees, to the extent permitted by applicable law, to indemnify and save the Fiscal Agent, its officers, employees, directors and agents harmless against any costs, expenses, claims or liabilities whatsoever, including without limitation fees and expenses of its attorneys, which it may incur in the exercise and performance of its powers and duties hereunder which are not due to its negligence or willful misconduct. The obligation of the Authority under this Ell Section shall survive resignation or removal of the Fiscal Agent under this Agreement and payment of the Bonds and discharge of this Agreement, but any monetary obligation of the Authority arising under this Section shall be limited solely to amounts on deposit in the Administrative Expense Fund. -39- ARTICLE VIII MODIFICATION OR AMENDMENT OF THIS AGREEMENT Section 8.01. Amendments Permitted. This Agreement and the rights and obligations of the Authority and of the Owners of the Bonds may be modified or amended at any time by a Supplemental Agreement pursuant to the affirmative vote at a meeting of Owners, or with the written consent without a meeting, of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in Section 8.04. No such modification or amendment shall (i) extend the maturity of any Bond or reduce the interest rate thereon, or otherwise alter or impair the obligation of the Authority to pay the principal of, and the interest and any premium on, any Bond, without the express consent of the Owner of such Bond, or (ii) permit the creation by the Authority of any pledge or lien upon the Special Taxes superior to or on a parity with the pledge and lien created for the benefit of the Owners of the Bonds (except as otherwise permitted by the Act, the laws of the State of California or this Agreement), or (iii) reduce the percentage of Bonds required for the amendment hereof. Any such amendment may not modify any of the rights or obligations of the Fiscal Agent without its written consent. This Agreement and the rights and obligations of the Authority and of the Owners may also be modified or amended at any time by a Supplemental Agreement, without the consent of any Owners, only to the extent permitted by law and only for any one or more of the following purposes: (A) to add to the covenants and agreements of the Authority in this Agreement contained, other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the Authority; (B) to make modifications not adversely affecting any Outstanding series of Bonds of the Authority in any material respect; (C) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Agreement, or in regard to questions arising under this Agreement, as the Authority or the Fiscal Agent may deem necessary or desirable and not inconsistent with this Agreement, and which shall not adversely affect the rights of the Owners of the Bonds; (D) to make such additions, deletions or modifications as may be necessary or desirable to assure exemption from gross federal income taxation of interest on the Bonds; and (E) in connection with the issuance of Parity Bonds under and pursuant to Section 2.14. Section 8.02. Owners' Meetings. The Authority may at any time call a meeting of the Owners. In such event the Authority is authorized to fix the time and place of said meeting and En to provide for the giving of notice thereof, and to fix and adopt rules and regulations for the conduct of said meeting. Section 8.03. Procedure for Amendment with Written Consent of Owners. The Authority and the Fiscal Agent may at any time adopt a Supplemental Agreement amending the provisions of the Bonds or of this Agreement or any Supplemental Agreement, to the extent that such amendment is permitted by Section 8.01, to take effect when and as provided in this Section. A copy of such Supplemental Agreement, together with a request to Owners for their consent thereto, shall be mailed by first class mail, by the Fiscal Agent to each Owner of Bonds Outstanding, but failure to mail copies of such Supplemental Agreement and request shall not affect the validity of the Supplemental Agreement when assented to as in this Section provided. Such Supplemental Agreement shall not become effective unless there shall be filed with the Fiscal Agent the written consents of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding (exclusive of Bonds disqualified as provided in Section 8.04) and a notice shall have been mailed as hereinafter in this Section provided. Each such consent shall be effective only if accompanied by proof of ownership of the Bonds for which such consent is given, which proof shall be such as is permitted by Section 9.04. Any such consent shall be binding upon the Owner of the Bonds giving such consent and on any subsequent Owner (whether or not such subsequent Owner has notice thereof) unless such consent is revoked in writing by the Owner giving such consent or a subsequent Owner by filing such revocation with the Fiscal Agent prior to the date when the notice hereinafter in this Section provided for has been mailed. After the Owners of the required percentage of Bonds shall have filed their consents to the Supplemental Agreement, the Authority shall mail a notice to the Owners in the manner hereinbefore provided in this Section for the mailing of the Supplemental Agreement, stating in substance that the Supplemental Agreement has been consented to by the Owners of the required percentage of Bonds and will be effective as provided in this Section (but failure to mail copies of said notice shall not affect the validity of the Supplemental Agreement or consents thereto). Proof of the mailing of such notice shall be filed with the Fiscal Agent. A record, consisting of the papers required by this Section 8.03 to be filed with the Fiscal Agent, shall be proof of the matters therein stated until the contrary is proved. The Supplemental Agreement shall become effective upon the filing with the Fiscal Agent of the proof of mailing of such notice, and the Supplemental Agreement shall be deemed conclusively binding (except as otherwise hereinabove specifically provided in this Article) upon the Authority and the Owners of all Bonds at the expiration of sixty (60) days after such filing, except in the event of a final decree of a court of competent jurisdiction setting aside such consent in a legal action or equitable proceeding for such purpose commenced within such sixty-day period. Section 8.04. Disqualified Bonds. Bonds owned or held for the account of the Authority, excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of any vote, consent or other action or any calculation of Outstanding Bonds provided for in this Article V11I, and shall not be entitled to vote upon, consent to, or take any other action provided for in this Article VIII; provided, however, that the Fiscal Agent shall not be deemed to have knowledge that any Bond is owned or held by the Authority unless the Authority is the registered Owner or the Fiscal Agent has received written notice that any other registered Owner is an Owner for the account of the Authority. -41- Section 8.05. Effect of Supplemental Agreement. From and after the time any Supplemental Agreement becomes effective pursuant to this Article VIII, this Agreement shall be deemed to be modified and amended in accordance therewith, the respective rights, duties and obligations under this Agreement of the Authority and all Owners of Bonds Outstanding shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such Supplemental Agreement shall be deemed to be part of the terms and conditions of this Agreement for any and all purposes. Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments. The Authority may determine that Bonds issued and delivered after the effective date of any action taken as provided in this Article VIII shall bear a notation, by endorsement or otherwise, in form approved by the Authority, as to such action. In that case, upon demand of the Owner of any Bond Outstanding at such effective date and presentation of his Bond for that purpose at the Principal Office of the Fiscal Agent or at such other office as the Authority may select and designate for that purpose, a suitable notation shall be made on such Bond. The Authority may determine that new Bonds, so modified as in the opinion of the Authority is necessary to conform to such Owners' action, shall be prepared, executed and delivered. In that case, upon demand of the Owner of any Bonds then Outstanding, such new Bonds shall be exchanged at the Principal Office of the Fiscal Agent without cost to any Owner, for Bonds then Outstanding, upon surrender of such Bonds. Section 8.07. Amendatory Endorsement of Bonds. The provisions of this Article VIII shall not prevent any Owner from accepting any amendment as to the particular Bonds held by him, provided that due notation thereof is made on such Bonds. -42- ARTICLE IX MISCELLANEOUS Section 9.01. Benefits of Agreement Limited to Parties. Nothing in this Agreement, expressed or implied, is intended to give to any person other than the Authority, the Fiscal Agent and the Owners, any right, remedy, claim under or by reason of this Agreement. Any covenants, stipulations, promises or agreements in this Agreement contained by and on behalf of the Authority shall be for the sole and exclusive benefit of the Owners and the Fiscal Agent. Section 9.02. Successor is Deemed Included in All References to Predecessor. Whenever in this Agreement or any Supplemental Agreement either the Authority or the Fiscal Agent is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Agreement contained by or on behalf of the Authority or the Fiscal Agent shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not. Section 9.03. Discharge of Agreement. The Authority shall have the option to pay and discharge the entire indebtedness on all or any portion of the Bonds Outstanding in any one or more of the following ways: (A) by well and truly paying or causing to be paid the principal of, and interest and any premium on, such Bonds Outstanding, as and when the same become due and payable; (B) by depositing with the Fiscal Agent, in trust, at or before maturity, money which, together with the amounts then on deposit in the funds and accounts provided for in Sections 4.04 and 4.05 is fully sufficient to pay such Bonds Outstanding, including all principal, interest and redemption premiums; or (C) by irrevocably depositing with the Fiscal Agent, in trust, cash and Federal Securities in such amount as the Authority shall determine as confirmed by Bond Counsel or an independent certified public accountant will, together with the interest to accrue thereon and moneys then on deposit in the fund and accounts provided for in Sections 4.04 and 4.05, be fully sufficient to pay and discharge the indebtedness on such Bonds (including all principal, interest and redemption premiums) at or before their respective maturity dates. If the Authority shall have taken any of the actions specified in (A), (B) or (C) above, and if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been given as in this Agreement provided or provision satisfactory to the Fiscal Agent shall have been made for the giving of such notice, then, at the election of the Authority, and notwithstanding that any Bonds shall not have been surrendered for payment, the pledge of the Special Taxes and other funds provided for in this Agreement and all other obligations of the Authority under this Agreement with respect to such Bonds Outstanding shall cease and terminate. Notice of such election shall be filed with the Fiscal Agent. Notwithstanding the foregoing, the obligation of the Authority to pay or cause to be paid to the Owners of the Bonds -43- not so surrendered and paid all sums due thereon, all amounts owing to the Fiscal Agent pursuant to Section 7.05, and otherwise to assure that no action is taken or failed to be taken if such action or failure adversely affects the exclusion of interest on the Bonds from gross income for federal income tax purposes, shall continue in any event. Upon compliance by the Authority with the foregoing with respect to all Bonds Outstanding, any funds held by the Fiscal Agent after payment of all fees and expenses of the Fiscal Agent, which are not required for the purposes of the preceding paragraph, shall be paid over to the Authority and any Special Taxes thereafter received by the Authority shall not be remitted to the Fiscal Agent but shall be retained by the Authority to be used for any purpose permitted under the Act. Section 9.04. Execution of Documents and Proof of Ownership by Owners. Any request, declaration or other instrument which this Agreement may require or permit to be executed by Owners may be in one or more instruments of similar tenor, and shall be executed by Owners in person or by their attorneys appointed in writing. Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer. Except as otherwise herein expressly provided, the ownership of registered Bonds and the amount, maturity, number and date of holding the same shall be proved by the registry books. Any request, declaration or other instrument or writing of the Owner of any Bond shall bind all future Owners of such Bond in respect of anything done or suffered to be done by the Authority or the Fiscal Agent in good faith and in accordance therewith. Section 9.05. Waiver of Personal Liability. No Director, Councilmember, officer, official, agent or employee of the Authority, the City or the District shall be individually or personally liable for the payment of the principal of, or interest or any premium on, the Bonds; but nothing herein contained shall relieve any such director, Councilmember, officer, official, agent or employee from the performance of any official duty provided by law. Section 9.06. Notices to and Demands on Authority and Fiscal Agent. Any notice or demand which by any provision of this Agreement is required or pernutted to be given or served by the Fiscal Agent to or on the Authority may be given or served by being deposited postage prepaid in a post office letter box addressed (until another address is filed by the Authority with the Fiscal Agent) as follows: -44- Temecula Public Financing Authority c/o City of Temecula 43200 Business Park Drive Temecula, CA 92590 Attn: Treasurer Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the Authority to or on the Fiscal Agent may be given or served by being deposited postage prepaid in a post office letter box addressed (until another address is filed by the Fiscal Agent with the Authority) as follows (provided that any such notice shall not be effective until actually received by the Fiscal Agent): U.S. Bank National Association 550 South Hope Street, Suite 500 Los Angeles, CA 90071 Attention: Corporate Trust Department Reference: Temecula PFA/Harveston 11 Section 9.07. State Reporting Requirements. The following requirements shall apply to the Bonds, in addition to those requirements under Section 5.17: (A) Annual Reporting. Not later than October 30 of each calendar year, beginning with October 30, 2005, and in each calendar year thereafter until the October 30 following the final maturity of the Bonds, the Treasurer shall cause the following information to be supplied to CDIAC: (i) the principal amount of the Bonds Outstanding; (ii) the balance in the Reserve Fund; (iii) the balance, if any, in the Capitalized Interest Account; (iv) the number of parcels in the District which are delinquent in the payment of Special Taxes, the amount of each delinquency, the length of time delinquent and when foreclosure was commenced for each delinquent parcel; (v) the balances in the accounts within the Improvement Fund; and (vi) the assessed value of all parcels in the District subject to the levy of the Special Taxes as shown in most recent equalized roll. The annual reporting shall be made using such form or forms as may be prescribed by CDIAC. (B) Other Reporting. If at any time the Fiscal Agent fails to pay principal and interest due on any scheduled payment date for the Bonds, or if funds are withdrawn from the Reserve Fund to pay principal and interest on the Bonds, the Fiscal Agent shall notify the Treasurer of such failure or withdrawal in writing. The Treasurer shall notify CDIAC and the Original Purchaser of such failure or withdrawal within 10 days of such failure or withdrawal. (C) Soecial Tax Reporting. The Treasurer shall file a report with the Authority no later than January 1, 2005, and at least once a year thereafter, which annual report shall contain: (i) the amount of Special Taxes collected and expended with respect to the District, (ii) the amount of Bond proceeds collected and expended with respect to the District, and (iii) the status of the Project. It is acknowledged that the Special Tax Fund and the Special Tax Prepayments Account are the accounts into which Special Taxes collected on the District will be deposited for purposes of Section 50075.1(c) of the -45- California Government Code, and the funds and accounts listed in Section 4.01 are the funds and accounts into which Bond proceeds will be deposited for purposes of Section 53410(c) of the California Government Code, and the annual report described in the preceding sentence is intended to satisfy the requirements of Sections 50075.1(d), 50075.3(d) and 53411 of the California Government Code. (D) Amendment. The reporting requirements of this Section 9.07 shall be amended from time to time, without action by the Authority or the Fiscal Agent (i) with respect to subparagraphs (A) and (B) above, to reflect any amendments to Section 53359.5(b) or Section 53359.5(c) of the Act, and (ii) with respect to subparagraph (C) above, to reflect any amendments to Section 50075.1, 50075.3, 53410 or 53411 of the California Government Code. Notwithstanding the foregoing, any such amendment shall not, in itself, affect the Authority's obligations under the Continuing Disclosure Agreement. The Authority shall notify the Fiscal Agent in writing of any such amendments which affect the reporting obligations of the Fiscal Agent under this Agreement. (E) No Liability. None of the Authority and its officers, agents and employees, the Treasurer or the Fiscal Agent shall be liable for any inadvertent error in reporting the information required by this Section 9.07. The Treasurer shall provide copies of any of such reports to any Bondowner upon the written request of a Bondowner and payment by the person requesting the information of the cost of the Authority to produce such information and pay any postage or other delivery cost to provide the same, as determined by the Treasurer. The term "Bondowner" for purposes of this Section 9.07 shall include any beneficial owner of the Bonds. Section 9.08. Partial Invalidity. If any Section, paragraph, sentence, clause or phrase of this Agreement shall for any reason be held illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this Agreement. The Authority hereby declares that it would have adopted this Agreement and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of the fact that any one or more Sections, paragraphs, sentences, clauses, or phrases of this Agreement may be held illegal, invalid or unenforceable. Section 9.09. Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any moneys held by the Fiscal Agent in trust for the payment and discharge of the principal of, and the interest and any premium on, the Bonds which remains unclaimed for two (2) years after the date when the payments of such principal, interest and premium have become payable, if such moneys was held by the Fiscal Agent at such date, shall be repaid by the Fiscal Agent to the Authority as its absolute property free from any trust, and the Fiscal Agent shall thereupon be released and discharged with respect thereto and the Owners shall look only to the Authority for the payment of the principal of, and interest and any premium on, such Bonds. Section 9.10. Applicable Law. This Agreement shall be governed by and enforced in accordance with the laws of the State of California applicable to contracts made and performed in the State of California. -46- Section 9.11. Conflict with Act. In the event of a conflict between any provision of this Agreement with any provision of the Act as in effect on the Closing Date, the provision of the Act shall prevail over the conflicting provision of this Agreement. Section 9.12. Conclusive Evidence of Regularity. Bonds issued pursuant to this Agreement shall constitute conclusive evidence of the regularity of all proceedings under the Act relative to their issuance and the levy of the Special Taxes. Section 9.13. Payment on Business Day. In any case where the date of the maturity of interest or of principal (and premium, if any) of the Bonds or the date fixed for redemption of any Bonds or the date any action is to be taken pursuant to this Agreement is other than a Business Day, the payment of interest or principal (and premium, if any) or the action need not be made on such date but may be made on the next succeeding day which is a Business Day with the same force and effect as if made on the date required and no interest shall accrue for the period from and after such date. Section 9.14. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. -47- IN WITNESS WHEREOF, the Authority caused this Fiscal Agent Agreement to be executed all as of August 1, 2004. TEMECULA PUBLIC FINANCING AUTHORITY, for and on behalf of TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) Lo Executive Director U.S. BANK NATIONAL ASSOCIATION, as Fiscal Agent Authorized Officer 20009.05:17448 No. EXHIBIT A FORM OF BOND UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF RIVERSIDE TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) SPECIAL TAX BOND, SERIES 2004 INTEREST RATE MATURITY DATE BOND DATE CUSIP September 1, _ September 1, 2004 OWNER: PRINCIPAL AMOUNT: DOLLARS The Temecula Public Financing Authority (the "Authority") for and on behalf of the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) (the "District'), for value received, hereby promises to pay solely from the Special Tax (as hereinafter defined) to be collected in the District or amounts in the funds and accounts held under the Agreement (as hereinafter defined), to the registered owner named above, or registered assigns, on the maturity date set forth above, unless redeemed prior thereto as hereinafter provided, the principal amount set forth above, and to pay interest on such principal amount from the Bond Date set forth above, or from the most recent interest payment date to which interest has been paid or duly provided for, semiannually on March 1 and September 1, commencing March 1, 2005, at the interest rate set forth above, until the principal amount hereof is paid or made available for payment. The principal of this Bond is payable to the registered owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at the Principal Office (as defined in the Agreement referred to below) of U.S. Bank National Association (the "Fiscal Agent'). Interest on this Bond shall be paid by check of the Fiscal Agent mailed on each interest payment date to the registered owner hereof as of the close of business on the 15th day of the month preceding the month in which the interest payment date occurs (the 'Record Date") at such registered owner's address as it appears on the registration books maintained by the Fiscal Agent, or (i) if the Bonds are in book -entry -only form, or (ii) otherwise upon written request filed with the Fiscal Agent prior to any Record Date by a registered owner of at least $1,000,000 in aggregate principal amount of Bonds, by wire transfer in immediately available funds to the depository for the Bonds or to an account in the United States designated by such registered owner in such written request, respectively. A-1 This Bond is one of a duly authorized issue of bonds approved by the qualified electors of the District pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Sections 53311, et seq., of the California Government Code (the "Mello -Roos Act") for the purpose of financing certain public facilities within and in the vicinity of the District (the "Project'), and is one of a series of such bonds designated "Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004" (the 'Bonds") in the aggregate principal amount of $ . The creation of the Bonds and the terms and conditions thereof are provided for by resolution adopted by the Board of Directors of the Authority on August 10, 2004 (the "Resolution"), and the Fiscal Agent Agreement, dated as of August 1, 2004, between the Authority and the Fiscal Agent (the "Agreement") and this reference incorporates the Resolution and the Agreement herein, and by acceptance hereof the owner of this Bond assents to said terms and conditions. Pursuant to and as more particularly provided in the Resolution and in the Agreement, bonds may be issued by the Authority from time to time, to refund all or a portion of the Bonds, secured by a lien on funds held under the Agreement on a parity with the lien securing the Bonds, if any, that remain outstanding following the issuance of any such refunding bonds. The Resolution is adopted and the Agreement is entered into under and this Bond is issued under, and all are to be construed in accordance with, the laws of the State of California. Pursuant to the Mello -Roos Act, the Agreement and the Resolution, the principal of and interest on this Bond are payable solely from the annual special tax authorized under the Mello - Roos Act to be collected within the District (the "Special Tax") and certain funds held under the Agreement. Interest on this Bond shall be payable from the interest payment date next preceding the date of authentication hereof, unless (i) it is authenticated on an interest payment date, in which event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an interest payment date and after the close of business on the Record Date preceding such interest payment date, in which event it shall bear interest from such interest payment date, or (iii) it is authenticated prior to the Record Date preceding the first interest payment date, in which event it shall bear interest from the Bond Date set forth above; provided, however, that if at the time of authentication of this Bond, interest is in default hereon, this Bond shall bear interest from the interest payment date to which interest has previously been paid or made available for payment hereon. Any tax for the payment hereof shall be limited to the Special Tax, except to the extent that provision for payment has been made by the Authority, as may be permitted by law. The Bonds do not constitute obligations of the Authority for which the Authority is obligated to levy or pledge, or has levied or pledged, general or special taxation other than described hereinabove. The City of Temecula has no liability or obligations whatsoever with respect to the Bonds or the Agreement. The Bonds are subject to redemption prior to their stated maturity on any interest payment date, as a whole or in part among maturities as provided in the Agreement, at a redemption price (expressed as a percentage of the principal amount of the Bonds to be redeemed), as set forth below, together with accrued interest thereon to the date fixed for redemption: A-2 Redemption Dates Redemption Prices September 1, _ and March 1, _ % September 1, _ and any interest payment date thereafter The Bonds maturing on September 1, are subject to mandatory sinking payment redemption in part on September 1, _ and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as follows: Redemption Date (September 1) Sinking Payments [to come] The Bonds maturing on September 1, , are subject to mandatory sinking payment redemption in part on September 1, _ and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as follows: Redemption Date (September 1) Sinking_ Payments [to come] The Bonds are also subject to redemption from the proceeds of Special Tax Prepayments and any corresponding transfers from the Reserve Fund pursuant to the Agreement, on any Interest Payment Date, among maturities as specified in the Agreement and by lot within a maturity, at a redemption price (expressed as a percentage at the principal amount of the Bonds to be redeemed), as set forth below, together with accrued interest to the date fixed for redemption: Redemption Dates Redemption Prices Any interest payment date from March 1, 2005 % to and including March 1, September 1, _ and any interest payment date thereafter A-3 Notice of redemption with respect to the Bonds to be redeemed shall be given to the registered owners thereof, in the manner, to the extent and subject to the provisions of the Agreement. This Bond shall be registered in the name of the owner hereof, as to both principal and interest. Each registration and transfer of registration of this Bond shall be entered by the Fiscal Agent in books kept by it for this purpose and authenticated by its manual signature upon the certificate of authentication endorsed hereon. No transfer or exchange hereof shall be valid for any purpose unless made by the registered owner, by execution of the form of assignment endorsed hereon, and authenticated as herein provided, and the principal hereof, interest hereon and any redemption premium shall be payable only to the registered owner or to such owner's order. The Fiscal Agent shall require the registered owner requesting transfer or exchange to pay any tax or other governmental charge required to be paid with respect to such transfer or exchange. No transfer or exchange hereof shall be required to be made (i) fifteen days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond after such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding interest payment date. Exchanges may only be made for Bonds in authorized denominations, as provided in the Agreement. The Agreement and the rights and obligations of the Authority thereunder may be modified or amended as set forth therein. The Indenture contains provisions permitting the Authority to make provision for the payment of the interest on, and the principal and premium, if any, of the Bonds so that such Bonds shall no longer be deemed to be outstanding under the terms of the Indenture. The Bonds are not general obligations of the Authority, but are limited obligations payable solely from the revenues and funds pledged therefor under the Agreement. Neither the faith and credit of the Authority or the State of California or any political subdivision thereof is pledged to the payment of the Bonds. This Bond shall not become valid or obligatory for any purpose until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Fiscal Agent. Unless this Bond is presented by an authorized representative of The Depository Trust Company to the Fiscal Agent for registration of transfer, exchange or payment, and any Bond issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein. A-4 IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond have existed, happened and been performed in due time, form and manner as required by law, and that the amount of this Bond does not exceed any debt limit prescribed by the laws or Constitution of the State of California. IN WITNESS WHEREOF, Temecula Public Financing Authority has caused this Bond to be dated the Bond Date set forth above, to be signed by the facsimile signature of its Executive Director and countersigned by the facsimile signature of its Secretary. ATTEST Secretary TEMECULA PUBLIC FINANCING AUTHORITY Executive Director A-5 FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION This is one of the Bonds described in the Resolution and in the Agreement which has been authenticated on U.S. Bank National Association, as Fiscal Agent a Authorized Signatory A-6 ASSIGNMENT For value received the undersigned hereby sells, assigns and transfers unto (Name, Address and Tax Identification or Social Security Number of Assignee) the within -registered Bond and hereby irrevocably constitute(s) and appoints(s) to transfer the same on the registration books of the Fiscal Agent with full power of substitution in the premises. Dated: Signature Guaranteed: Signature: Note: Signature(s) must be guaranteed by an eligible Note: The signature(s) on this Assignment must guarantor. correspond with the name(s) as written on the face of the within Bond in every particular without alteration or enlargement or any change whatsoever. A-7 PRELIMINARY OFFICIAL STATEMENT DATED AUGUST _, 2004 NEW ISSUE NOT RATED In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however, to certain qualifications described herein, under existing law, the interest on the Series 2004 Bonds is excluded from gross income forfederal income tax purposes and isnotan item oftaxpreferenceforpurposes ofthefederalalternativeminimumtax imposedon individuals andcorporations; itshouldbe noted, however, that, for thepurpose ofcomputing the alternative minimum tax imposedon corporations (as definedforfederat income taxpurposes), such interest is taken into account in determining certain income and earnings. Bond Counsel is also of the opinion that under existing law, the interest on the Series 2004 Bonds is exempt from personal income taxation imposed by the State of California. See "LEGAL MATTERS — Tax Exemption" herein. $4,700,000- PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON I1) SPECIAL TAX BONDS, SERIES 2004 Dated: Date of Delivery Due: September 1, as on the inside cover The Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 (the "Series 2004 Bonds") are being issued under the Mello -Roos Community Facilities Act of 1982 (the "Act') and a Fiscal Agent Agreement, dated as of August 1, 2004, by and between the Temecula Public Financing Authority (the "Authority") and U.S. Bank National Association, as Fiscal Agent (the "Fiscal Agent'), and are payable from proceeds of Special Taxes (as defined herein) levied on property within the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) (the "District") according to the rate and method of apportionment of special tax approved by the qualified electors of the District and by the Board of Directors of the Authority, acting as the legislative body of the District. The Series 2004 Bonds are being issued (i) to finance, either directly or indirectly, the acquisition and construction of certain road, bridge and intersection improvements (collectively, the "Improvements") within or in the vicinity of the District, (ii) to fund interest on the Series 2004 Bonds through September 1, 2005, (iii) to pay certain administrative expenses of the District, (iv) to pay the costs of issuing the Series 2004 Bonds and (v) to establish a Reserve Fund for the Series 2004 Bonds. See "ESTIMATED SOURCES AND USES OF FUNDS" and "PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OF THE SERIES 2004 BONDS" herein. The Series 2004 Bonds will be issued in denominations of $5,000 or integral multiples in excess thereof. The Series 2004 Bonds, when delivered, will be initially registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), New York, New York. DTC will act as securities depository for the Series 2004 Bonds as described herein under "THE SERIES 2004 BONDS— Book - Entry and DTC." The Series 2004 Bonds are subject to optional redemption, mandatoryredemption from prepayments of Special Taxes and mandatory redemption as described herein. THE SERIES 2004 BONDS, THE INTEREST THEREON, AND ANY PREMIUMS PAYABLE ON THE REDEMPTION OF ANY OF THE SERIES 2004 BONDS, ARE NOT AN INDEBTEDNESS OF THE AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE FISCAL AGENT AGREEMENT), THE STATE OF CALIFORNIA (THE "STATE") ORANY OF ITS POLITICAL SUBDIVISIONS, AND NEITHER THE AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE FISCAL AGENT AGREEMENT), THE STATE NOR ANY OF ITS POLITICAL SUBDIVISIONS IS LIABLE FOR THE SERIES 2004 BONDS. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE FISCAL AGENT AGREEMENT) OR THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE SERIES 2004 BONDS. OTHER THAN THE SPECIAL TAXES LEVIED WITHIN THE DISTRICT, NO TAXES ARE PLEDGED TO THE PAYMENT OF THE SERIES 2004 BONDS. THE SERIES 2004 BONDS ARE NOT A GENERAL OBLIGATION OF THE AUTHORITY OR THE DISTRICT, BUT ARE LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM THE SOURCES PROVIDED IN THE FISCAL AGENT AGREEMENT. This cover page contains certain information for quick reference only. It is not a summary of the issue. Potential investors must readthe entire Official Statement to obtain information essential to themaking of an informed investment decision with respect to the Series 2004 Bonds. Investment in the Series 2004 Bonds involves risks which may not be appropriatefor some investors. See `BONDOWNER.S' RISKS" herein for a discussion of special risk factors that should be considered in evaluating the investment quality of the Series 2004 Bonds. MATURITY SCHEDULE (See Inside Cover) Please refer to the inside cover page fora summary of the principal amounts, interest rates, and reoffering yields for the Series 2004 Bonds. The Series 2004 Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to their legality by Quint & Thimmig LLP, San Francisco, California, Bond Counsel, and subject to certain other conditions. McFarlin & Anderson LLP, Lake Forest, California is acting as Disclosure Counsel. Certain legal matters will be passed on for the Authority and the District by Richards, Watson & Gershon, Los Angeles, California, acting as general counsel to the Authority and for Harveston, LLC and the Lennar Optionees by their counsel, Pillsbury Winthrop LLP, Century City, California. It is anticipated that the Series 2004 Bonds, in book -entry form, will be available for delivery to DTC in New York, New York on or about September _ 2004. Stone & Youngberg LLC Dated: August. 2004 *Preliminary, subject to change. MATURITY SCHEDULE' TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 $ Serial Bonds Base CUSIP No. Maturity Principal Interest CUSIP Maturity Principal Interest CUSIP (September 1) Amount Rate Yield Suffix (September I) Amount Rate Yield Suffix 2006 % % 2015 % % 2007 2016 2008 2017 2009 2018 2010 2019 2011 2020 2012 2021 2013 2022 2014 2023 $ % Term Series 2004 Bonds due September 1, 20, Yield % CUSIP No." $ % Tenn Series 2004 Bonds due September 1, 2034, Yield % CUSIP No.— * Preliminary, subject to change. * * CUSIP® A registered trademark of the American Bankers Association. Copyright © 1999-2004 Standard & Poor's, a Division of The McGraw-Hill Companies, Inc. CUSIP® data herein is provided by Standard & Poor's CUSIP Service Bureau. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Service Bureau. CUSIP® numbers are provided for convenience of reference only. Neither the School District nor the Underwriter takes any responsibility for the accuracy of such numbers. The fallowing language to be inserted by the printer, in red, at the top of the POSfront cover: PRELIMINARY OFFICIAL STATEMENT DATED AUGUST _, 2004 The fallowing language to be inserted by the printer, in red, vertically along the left margin of the POSfront cover: This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. TEMECULA PUBLIC FINANCING AUTHORITY BOARD OF DIRECTORS Jeff Stone, Chairperson Michael S. Naggar, Vice Chairperson Jeff Comerchero, Member Charles W. Washington, Member Ron Roberts, Member AUTHORITY STAFF Shawn Nelson, Executive Director and City Manager Genie Roberts, Authority Treasurer and City Finance Director Susan Jones, Authority Secretary and City Clerk SPECIAL SERVICES Bond Counsel Quint & Thimmig LLP San Francisco, California Authority Counsel Richards, Watson & Gershon A Professional Corporation Los Angeles, California Disclosure Counsel McFarlin & Anderson LLP Lake Forest, California Special Tax Consultant Albert A. Webb Associates Riverside, California Financial Advisor to the Authority Fieldman, Rolapp & Associates Irvine, California Fiscal Agent/Dissemination Agent U.S. Bank National Association Los Angeles, California Appraiser Stephen G. White, MAI Fullerton, California Market Absorption Consultant Empire Economics, Inc. San Juan Capistrano, California NO DEALER, BROKER, SALESPERSON OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION WITH RESPECT TO THE SERIES 2004 BONDS, OTHER THAN AS CONTAINED IN THIS OFFICIAL STATEMENT, AND, IF GIVEN OR MADE, ANY SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE AUTHORITY, THE DISTRICT OR THE UNDERWRITER. THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE AN OFFER OF ANY SECURITIES OTHER THAN THOSE DESCRIBED ON THE COVER PAGE OR AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY OFFER, SOLICITATION OR SALE OF THE SERIES 2004 BONDS BY ANY PERSON IN ANY JURISDICTION IN WHICH IT IS UNLAWFUL TO MAKE SUCH OFFER, SOLICITATION OR SALE. THIS OFFICIAL STATEMENT IS NOT TO BE CONSTRUED AS A CONTRACT WITH THE PURCHASERS OF THE SERIES 2004 BONDS. Statements contained in this Official Statement which involve time estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. The information set forth herein has been furnished by the Authority, the District, or other sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the District or any other entity described herein since the date hereof. This Official Statement is submitted in connection with the sale of securities referred to herein and may not be reproduced or be used, as a whole or in part, for any other purpose. IN CONNECTION WITH THE OFFERING OF THE SERIES 2004 BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 2004 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE SERIES 2004 BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. THE SERIES 2004 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE SERIES 2004 BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. TABLE OF CONTENTS Page INTRODUCTION................................................................... 1 General..................................................................... 1 TheAuthority................................................................ 1 The Community Facilities District ................................................ 1 Purpose of the Series 2004 Bonds ................................................. 3 Sources of Payment for the Series 2004 Bonds ...................................... 3 Appraisal.................................................................... 4 TaxExemption............................................................... 5 Risk Factors Associated with Purchasing the Series 2004 Bonds ........................ 5 Forward Looking Statements.................................................... 5 Professionals Involved in the Offering ............................................. 5 Other Information............................................................. 6 CONTINUING DISCLOSURE........................................................ 6 PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OF THE SERIES 2004 BONDS ................................. 7 ESTIMATED SOURCES AND USES OF FUNDS ......................................... 7 THE SERIES 2004 BONDS........................................................... 7 Description of the Series 2004 Bonds .............................................. 8 Debt Service Schedule........................................................ 10 Terms of Redemption......................................................... 10 Transfer and Exchange of Bonds ................................................ 12 Book -Entry and DTC......................................................... 13 SECURITY FOR THE SERIES 2004 BONDS ............................................ 13 General.................................................................... 13 SpecialTaxes............................................................... 13 Rate and Method............................................................. 14 Special Taxes and the Teeter Plan ............................................... 16 Proceeds of Foreclosure Sales ................................................... 16 Special Tax Fund............................................................ 17 BondFund.................................................................. 18 Reserve Fund............................................................... 19 Investment of Moneys in Funds ................................................. 19 Rebate Requirement.......................................................... 19 Additional Bonds for Refunding Purposes Only .................................... 19 THE AUTHORITY................................................................. 20 Authority for Issuance......................................................... 20 THE COMMUNITY FACILITIES DISTRICT ............................................ Location and Description of the District ........................................... SpecificPlan ................................................................ Environmental Conditions..................................................... Development Agreement...................................................... Settlement of Litigation Regarding Development ................................... Acquisition of Improvements................................................... PROPERTY OWNERSHIP........................................................... Description of Project......................................................... Lennar Optionees; LEN-Inland, LLC............................................. The Development Plan ........................................................ William Lyon Homes, Inc . ..................................................... -i- 22 22 23 23 24 25 26 26 26 27 33 38 PLC Harveston, LLC; Christopher Homes, Inc ...................................... 40 Direct and Overlapping Debt ................................................... 41 Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership ............................................................... 44 Overlapping Community Facilities and Assessment Districts .......................... 47 Other Overlapping Direct Assessments ........................................... 47 Estimated Assessed Value -to -Lien Ratios ......................................... 47 Transportation Uniform Mitigation Fee; Multiple Species Habitat Conservation Plan ....... 48 Market Absorption Study ...................................................... 48 Appraised Property Value ...................................................... 50 BONDOWNERS' RISKS............................................................ Risks of Real Estate Secured Investments Generally ................................. Concentration of Ownership .................................................... Failure to Develop Properties ................................................... Special Taxes Are Not Personal Obligations ....................................... The Series 2004 Bonds Are Limited Obligations of the District ........................ Appraised Values............................................................ Land Development........................................................... Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property ..... Disclosure to Future Purchasers ................................................. Government Approvals........................................................ Local, State and Federal Land Use Regulations ..................................... Endangered and Threatened Species .............................................. Hazardous Substances......................................................... Levy and Collection of the Special Tax; Insufficiency of the Special Tax ................. Exempt Properties............................................................ Depletion of Reserve Fund ..................................................... Potential Delay and Limitations in Foreclosure Proceedings ........................... Bankruptcy and Foreclosure Delay ............................................... Payments by FDIC and Other Federal Agencies .................................... Payment of Special Tax Not a Personal Obligation of the Property Owners ............... Factors Affecting Parcel Values and Aggregate Value ................................ No Acceleration Provisions.................................................... Community Facilities District Formation .......................................... Billing of Special Taxes ....................................................... Collection of Special Tax ...................................................... Right to Vote on Taxes Act ..................................................... Ballot Initiatives and Legislative Measures ........................................ Limited Secondary Market ..................................................... Loss of Tax Exemption........................................................ Limitations on Remedies...................................................... 51 51 51 52 52 52 52 53 53 54 54 54 55 55 56 57 57 57 58 59 60 60 61 61 61 61 62 63 63 63 63 LEGAL MATTERS................................................................. 64 LegalOpinion............................................................... 64 Tax Exemption.............................................................. 64 NoLitigation................................................................ 64 No General Obligation of the Authority or the District ............................... 64 NO RATINGS..................................................................... 65 UNDERWRITING.................................................................. 65 PROFESSIONAL FEES............................................................. 65 MISCELLANEOUS................................................................ 65 M APPENDIX A — General Information About the City of Temecula ......................... A-1 APPENDIX B — Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Rate and Method of Apportionment of Special Tax ...... B-1 APPENDIX C — Summary Appraisal Report .......................................... C-1 APPENDIX D — Market Absorption Study ........................................... D-1 APPENDIX E — Summary of Certain Provisions of the Fiscal Agent Agreement ............. E-1 APPENDIX F — Form of Community Facilities District Continuing Disclosure Agreement ...... F-1 APPENDIX G — Form of Harveston, LLC Continuing Disclosure Agreement ................ G-1 APPENDIX H — Form of Opinion of Bond Counsel .................................... H-1 APPENDIX I — Book -Entry System ................................................. I-1 REGIONAL LOCATION MAP [Regional Map to be provided by Stone & Youngberg LLC] AERIAL MAP [Aerial Map to be provided by Stone & Youngberg LLC] OFFICIAL STATEMENT $4,700,000' TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) 2004 SPECIAL TAX BONDS, SERIES 2004 INTRODUCTION This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made ofthe entire Official Statement. The offering ofthe Series 2004 Bonds to potential investors is made only by means of the entire Official Statement. General This Official Statement, including the cover page and appendices hereto, is provided to furnish information regarding the issuance and sale by the Temecula Public Financing Authority (the "Authority"), on behalf ofthe Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) (the "District' or the "Community Facilities District') of $4,700,000* aggregate principal amount of the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 (the "Series 2004 Bonds"). The Series 2004 Bonds are issued pursuant to the Act (as defined below) and a Fiscal Agent Agreement, dated as of August 1, 2004 (the "Fiscal Agent Agreement'), by and between the Authority, for and on behalf of the District, and U.S. Bank National Association, as Fiscal Agent (the "Fiscal Agent'). See "THE AUTHORITY— Authority for Issuance" herein. The Authority may issue additional bonds on a parity with the Series 2004 Bonds for refunding purposes only. (The Series 2004 Bonds and any parity bonds are referred to herein as the "Bonds.") Capitalized terms used in this Official Statement and not otherwise defined herein have the meanings given such terms in the Fiscal Agent Agreement, some of which are set forth in Appendix E hereto "Summary of Certain Provisions of the Fiscal Agent Agreement." The Authority The Authority was formed on April 10, 2001, pursuant to a Joint Exercise of Powers Agreement between the City of Temecula, California (the "City") and the Redevelopment Agency of the City of Temecula, in accordance with Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the Government Code of the State of California. See "THE COMMUNITY FACILITIES DISTRICT" and "THE AUTHORITY." The Community Facilities District The District was formed and established by the Board of Directors of the Authority on November 25, 2003 pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the California Government Code, and referred to herein as the "Act'), following a public hearing and a landowner election at which the qualified electors of the District, by more than a two-thirds vote, authorized the District to incur bonded indebtedness in the aggregate not -to -exceed amount of $5,500,000, and approved the levy of a Special Tax (the "Special Tax") on certain real property located in the District for the payment of debt service or acquisition of public improvements. * Preliminary, subject to change. Once duly established, a community facilities district is a legally constituted governmental entity established for the purpose of financing specific facilities and services within defined boundaries. Subject to approval by a two-thirds vote of the qualified voters within a community facilities district and compliance with the provisions of the Act, a community facilities district may issue bonds and may levy and collect special taxes to repay such bonded indebtedness and interest thereon. The District is comprised of approximately 212.1 net acres of land located in the northwest portion of the City, in the south-westerly portion of the County of Riverside (the "County"). The District is located to the northeast of the I-15 Freeway, northwest of Winchester Road, and westerly from Margarita Road. The District is part of a master -planned community that includes a large residential area surrounding the 17-acre lake and park in the center of the community. The master planned community is planned for a total of 1,621 dwelling units, plus a 300-unit apartment complex. In addition, there is expected to be a 2.23-acre retail center in the center of the community, a private Lake HouseNillage Club, a park surrounding the lake connected to a paseo to the 20-acre community park, a child care center, a community facility and an approximately 12 acre elementary school, which opened in September, 2001. The entire master planned community, including the District, is encompassed within Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) ("Community Facilities District No. 01-2 (Harveston)"), for which $17,310,000 aggregate principal amount of variable rate bonds were issued in August, 2002. Such bonds will be converted to a fixed rate, or refunded with a fixed rate bond issue, in the future. The master planned community is planned to be developed in four phases, which are referred to as Phase 1, Phase 2, Phase 2B and Phase 3, and comprise the central portion of the community. The single family detached residential portion of Phase 1, which is not within the District, is almost complete with most of the 360 proposed homes occupied or under construction, but the 300-unit apartment complex remains to be constructed. The District encompasses Phase 2, Phase 2B and Phase 3 of the master planned community. While properties in Phase 1 will pay special taxes with respect to Community Facilities District No. 01-2 (Harveston), properties in Phase 1 will not pay special taxes with respect to the District. Phase 2, 2B and 3 will pay special taxes with respect to both Community Facilities District No. 01-2 (Harveston) and the District. Phase 2 will include 7 different tracts or neighborhoods of homes, containing a total of 681 homes and two of these tracts or product types will be a carryover from Phase 1. Construction is just underway in the early stage on 6 of these 7 tracts. Phase 2 also includes the 20-acre community park which is under construction and due to be completed by August or September, 2004. It will include two lighted soccer fields and two lighted baseball fields. Phase 2B will include two different tracts containing a total of 198 detached homes. The lots are in a graded blue -top condition and are due to be delivered to the Merchant Builders in August or September, 2004. Phase 3 will include 4 different tracts containing a total of 382 homes, including 64 attached homes and 318 detached homes. The land is currently in a mass graded condition and is projected to be sold and delivered to Merchant Builders in late 2005. As of June 1, 2004, there are five landowners within the District. One large landowner is LEN- Inland, LLC, a Delaware limited liability company ("LEN-Inland, LLC") which owned property containing 426 home sites, of which 162 home sites are under option with Greystone Homes, Inc., a Delaware corporation ("Greystone Homes"), 145 home sites are under option with US Home Corporation, a Delaware corporation ("US Home"), and 119 home sites are under option with Lennar Homes of California, Inc., a California corporation ("Lennar Homes"). Pursuant to the option agreements, 28 home sites have since been sold to Greystone Homes. A second large owner is Harveston, LLC, a Delaware limited liability company ("Harveston, LLC') (of which Lennar Homes is the Administrative Member), which owns property containing 580 home sites. LEN-Inland, LLC acquired the property it owns from Harveston, LLC in November, 2003. In addition, 162 home sites are owned by William Lyon Homes, Inc. ("William Lyon Homes, Inc.") and 78 home sites are owned by PLC Harveston, LLC, a Delaware limited liability company, of which Christopher Homes, Inc., a Delaware corporation ("Christopher Homes") is the Managing Member. For purposes hereof, the term "Lennar Optionees" includes US Home, Greystone Home and Lennar Homes; and the term "Merchant Builders" includes William Lyon Homes, Inc. and PLC Harveston, LLC, together with the Lennar Optionees. See "THE COMMUNITY FACILITIES DISTRICT" for a description of the District, Harveston, LLC, LEN-Inland, LLC and the Merchant Builders and the development within the District. Purpose of the Series 2004 Bonds The Series 2004 Bonds are being issued (i) to finance, either directly or indirectly, the acquisition and construction of certain road, bridge and intersection improvements (collectively, the "Improvements") to be located within or in the vicinity of the District, (ii) to fund interest on the Series 2004 Bonds through September 1, 2005, (iii) to pay certain administrative expenses of the District, (iv) to pay the costs of issuing the Series 2004 Bonds and (v) to establish a Reserve Fund for the Series 2004 Bonds. See "PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OF THE SERIES 2004 BONDS" herein. Sources of Payment for the Series 2004 Bonds The Bonds are secured by and payable from a first pledge of"Special Tax Revenues," defined in the Fiscal Agent Agreement as the proceeds of the Special Taxes received by the Authority, including any scheduled payments thereof and any prepayments thereof, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes to the amount of said lien and interest thereon. "Special Tax Revenues" do not include any penalties collected in connection with delinquent Special Taxes which amounts may be forgiven or disposed of by the Authority in its discretion, and if collected, will be used in a manner consistent with the Act. "Special Taxes" are defined in the Fiscal Agent Agreement as the special taxes levied within the District pursuant to the Act, the ordinance adopted by the legislative body of the District providing for the levy of the Special Taxes and the Fiscal Agent Agreement. The Special Taxes are levied in accordance with the Rate and Method of Apportionment of Special Tax (the "Rate and Method") recorded as a lien on the Property pursuant to the Notice of Special Tax Lien. Pursuant to the Act, the Rate and Method, the Resolution of Formation (as defined herein) and the Fiscal Agent Agreement, so long as any Bonds are outstanding, the Authority will annually levy the Special Tax against the land within the District not exempt from Special Taxes under the Act and the Rate and Method ("Taxable Property") in accordance with the proceedings for the authorization and issuance of the Bonds and with the Rate and Method, to make provision for the collection of the Special Tax in amounts which will be sufficient to (a)(i) pay debt service on all Bonds, if any, for the calendar year that commences in such Fiscal Year; (ii) pay Administrative Expenses; and (iii) pay any amounts required to establish or replenish any bond or interest reserve funds for any Outstanding Bonds; less (b) a credit for funds available to reduce the annual Special Tax levy under the Fiscal Agent Agreement. See "SECURITY FOR THE SERIES 2004 BONDS — Special Taxes and the Teeter Plan" herein. The Rate and Method exempts from the Special Tax up to 107.44 acres of Property Owner Association Property, Public Property and Service Commercial Property of the District. See "SECURITY FOR THE SERIES 2004 BONDS —Rate and Method" and `BONDOWNERS' RISKS —Exempt Properties." The Authority has also covenanted in the Fiscal Agent Agreement to cause foreclosure proceedings to be commenced and prosecuted against certain parcels with delinquent installments of the Special Tax. For a more detailed description of the foreclosure covenant, see "SECURITY FOR THE SERIES 2004 BONDS — Proceeds of Foreclosure Sales." NEITHERTHE FAITH AND CREDIT NOR THE TAXING POWER OF THE AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED EXTENT DESCRIBED HEREIN) OR THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE SERIES 2004 BONDS. OTHER THAN THE SPECIAL TAXES OF THE DISTRICT, NO TAXES ARE PLEDGED TO THE PAYMENT OF THE SERIES 2004 BONDS. THE SERIES 2004 BONDS ARE NOT A GENERAL OBLIGATION OF THE AUTHORITY OR THE DISTRICT, BUT ARE LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM THE SOURCES PROVIDED IN THE FISCAL AGENT AGREEMENT. Appraisal An appraisal prepared by an MAI appraiser of the land and existing improvements for the development within the District dated June 21, 2004 (the "Appraisal"), has been prepared by Stephen G. White, MAI of Fullerton, California (the "Appraiser") in connection with issuance of the Series 2004 Bonds. The purpose of the Appraisal was to estimate the aggregate market value of the "as is" condition of the property in each of the 7 separate tracts in Phase 2, plus the remaining ownership of Harveston, LLC comprising Phases 2B and 3. The Appraisal also reflects the proposed District financing as well as the tax rates of approximately 1.8 to 1.9% to the homeowners, including Special Taxes for the District and for Community Facilities District No. 01-2 (Harveston). The Appraisal is based on certain assumptions. Subject to these assumptions, the Appraiser estimated that the fee simple market value of the Taxable Property within the District (subject to the lien of the Special Taxes) as of June 1, 2004, was as follows: Phase 2 Expected Builder Tract Name William Lyon Homes, Inc. Savannah Greystone Homes of Ashville US Home (1) Lake Front Cottages Lennar Homes 1'I Auburn Lane Greystone Homes Sausalito Christopher Homes Walden US Home Chatham Subtotal Phases 2B and 3 Owner Harveston, LLC Total No. of Home Sites/Units 162 53 67 119 109 93 78 681 Market Value $16,140,000 7,260,000 10,750,000 15,820,000 16,810,000 16,240,000 14.930.000 $97,950,000 580 52,500,000 1,261 $150,450,000 (p Lennar Optionees are subject to the Option Agreements. Actual number of units may vary. A small area of property affecting 4 of the proposed 1,261 home sites may annex into the District. The annexation has not yet occurred and Harveston, LLC can not predict, when or if the annexation will occur. The fee simple market value includes the value of extensive grading and infrastructure improvements completed as of the date of value and the improvements to be financed by the Series 2004 Bonds. The market values reported in the Appraisal result in an estimated overall value -to -lien ratio of approximately 9.97:1 *, calculated with respect to the Series 2004 Bonds and including $11,388,296 as the District's approximate share oJthe $17, 310, 000special tax bonds issued by Community Facilities DistrictNo. 01-2 (Harveston) and the assessment bonds issued by the County with respect to Assessment District No. 161. The value -to -lien ratios of individual parcels will differ from the foregoing aggregate value -to -lien ratio. See "— Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership" and Tables 6 and 7 ` — Value -to -Lien Analysis" in the "PROPERTY OWNERSHIP" section. See `BONDOWNERS' RISKS — Appraised Values" and "BONDOWNERS' RISKS — Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property" herein and APPENDIX C — "Summary Appraisal Report" appended hereto for further information on the Appraisal and for limiting conditions relating to the Appraisal. Tax Exemption Assuming compliance with certain covenants and provisions of the Internal Revenue Code of 1986, in the opinion of Bond Counsel, interest on the Series 2004 Bonds will not be includable in gross income for federal income tax purposes although it may be includable in the calculation for certain taxes. Also in the opinion of Bond Counsel, interest on the Series 2004 Bonds will be exempt from State personal income taxes. See "LEGAL MATTERS — Tax Exemption" herein. Risk Factors Associated with Purchasing the Series 2004 Bonds Investment in the Series 2004 Bonds involves risks that may not be appropriate for some investors. See the section of this Official Statement entitled `BONDOWNERS' RISKS" for a discussion of certain risk factors which should be considered, in addition to the other matters set forth herein, in considering the investment quality of the Series 2004 Bonds. Forward Looking Statements Certain statements included or incorporated by reference in this Official Statement constitute "forward -looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21 E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as a "plan," "expect," "estimate," "project," "budget" or similar words. Such forward - looking statements include, but are not limited to certain statements contained in the information under the caption "THE COMMUNITY FACILITIES DISTRICT— Property Ownership" herein. THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD -LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD -LOOKING STATEMENTS. NEITHER THE AUTHORITY NOR THE DISTRICT PLANS TO ISSUE ANY UPDATES OR REVISIONS TO THE FORWARD -LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT. Professionals Involved in the Offering U.S. BankNational Association, Los Angeles, California, will serve asthe fiscal agent, paying agent, registrar, authentication and transfer agent, and dissemination agent for the Series 2004 Bonds and will perform the functions required of it under the Fiscal Agent Agreement for the payment of the principal of and interest and any premium on the Series 2004 Bonds and all activities related to the redemption of the Series 2004 Bonds. Quint & Thimmig LLP, San Francisco, California is serving as Bond Counsel to the Authority. McFarlin & Anderson LLP, Lake Forest, California, is acting as Disclosure Counsel to the Authority. Disclosure Counsel serves as counsel to the Underwriter in other transactions. Pillsbury Winthrop LLP, Century City, California, is counsel for Harveston, LLC and the Lennar Optionees. Albert A. Webb Associates, Riverside, California, acts as special tax consultant to the District. Fieldman, Rolapp and Associates, Irvine, California, acts as Financial Advisor to the Authority. The appraisal work was done by Stephen G. White, MAI of Fullerton, California. Empire Economics, Inc., San Juan Capistrano, California, acted as Market Absorption Consultant. Payment of the fees and expenses of Bond Counsel, Disclosure Counsel, the Fiscal Agent and the Underwriter, and of a portion of the fees and expenses of the Financial Advisor and the Special Tax Consultant, is contingent upon the sale and delivery of the Series 2004 Bonds. Other Information This Official Statement speaks only as of its date, and the information contained herein is subject to change. Brief descriptions of the Series 2004 Bonds, certain sections of the Fiscal Agent Agreement, security for the Series 2004 Bonds, special risk factors, the Authority, the District, Harveston, LLC, LEN-Inland, LLC, the Merchant Builders, information regarding the development plan for the property owned or under option by Harveston, LLC and LEN-Inland, LLC and other information are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. The descriptions herein of the Series 2004 Bonds, the Fiscal Agent Agreement, and other resolutions and documents are qualified in their entirety by reference to the complete texts of the Series 2004 Bonds, the Fiscal Agent Agreement, such resolutions and other documents. All such descriptions are further qualified in their entirety by reference to laws and to principles of equity relating to or affecting generally the enforcement of creditors' rights. Copies of such documents may be obtained upon written request from the Temecula Public Financing Authority, 43200 Business Park Drive, Temecula, California 92590 Attention: Treasurer. The Authority may charge for copying and mailing any documents requested. CONTINUING DISCLOSURE The Authority. The Authority has covenanted for the benefit of the owners of the Series 2004 Bonds to provide annually certain financial information and operating data relating to the Series 2004 Bonds, the District, ownership and development of the property in the District which is subject to the Special Tax, the occurrence of delinquencies in payment of the Special Tax, and the status of foreclosure proceedings, if any, respecting Special Tax delinquencies (the "Authority Annual Report"), and to provide notice of the occurrence of certain enumerated events, if material. Such information is to be provided by the Authority not later than eight months after the end of the Authority's fiscal year (which currently would be March 1), commencing with the reports for the 2003-04 fiscal year. The Authority has recent undertakings with regard to Securities and Exchange Commission Rule 15c2-12(b)(5) relating to a different issue of securities but the first annual reports are not required to be filed until March 1, 2005. The Authority, the City and related entities have never failed to comply in all material respects with any previous undertakings with regard to said Rule to provide annual reports or notices of material events. Harveston, LLC. Harveston, LLC has covenanted for the benefit of the Owners of the Series 2004 Bonds to provide semi-annually certain financial information and information regarding the development of the property owned by Harveston, LLC, the Lennar Optionees and LEN-Inland, LLC or their Affiliates (as defined below), in the District (the "Harveston, LLC Semi -Annual Report"), and to provide notice of the occurrence of certain enumerated events, if material. Such information is to be provided not later than March 15 and September 15, commencing with the report due not later than March 15, 2005. In connection with covenants relating to the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series A (the "1998 Winchester Hills Bonds"), the Administrative Member of Harveston, LLC has filed audited financial statements for each fiscal year through its 1999 fiscal year (the report filed in May, 2000) but did not file the report due for the 2000 fiscal year and did not include financial information regarding the development of the property owned by Lennar Homes in the 1999 report. Lennar Homes has updated its system for filing reports and expects, as the Administrative Member of Harveston, LLC to satisfy Harveston, LLC's obligations with regard to disclosure in the future. The 1998 Winchester Hills Bonds have been paid and the reporting obligation with respect to the 1998 Winchester Hills Bonds has terminated. Filing of District Annual Reports; Harveston, LLC Semi -Annual Reports; Form of Reports. Each Annual Report will be filed by the Fiscal Agent, as dissemination agent, with each Nationally Recognized Municipal Securities Information Repository and with each State Repository, if any. These covenants have been made in order to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)(5); provided, however, a default under the Harveston, LLC Continuing Disclosure Agreement will not, in itself, constitute a default under the Fiscal Agent Agreement, and the sole remedy under the Harveston, LLC Continuing Disclosure Agreement in the event of any failure of Harveston, LLC or the Dissemination Agent to comply with the Harveston, LLC Continuing Disclosure Agreement will be an action to compel performance. Harveston, LLC's continuing disclosure obligations will terminate upon the occurrence of certain events, including when their and their Affiliates' property is subject to less than 15% of the Special Tax levy of the District for the then current Fiscal Year. For a complete listing of items of information which will be provided in the Authority Annual Reports and the Harveston, LLC Semi -Annual Reports, see APPENDIX G — "Form of Harveston, LLC Continuing Disclosure Agreement." PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OF THE SERIES 2004 BONDS Acquisition or Construction of Improvements. Proceeds of the Series 2004 Bonds in the amount of [$ ]will be applied to acquire or construct the Improvements to be constructed within or in the vicinity of the District. The Improvements include widening of the Ynez Road Bridge over San Gertrudes Creek, and design of and improvements to the Winchester Road/Ynez Road intersection. The Improvements include the acquisition of right-of-way, the cost of design, engineering and planning, the cost of any environmental or traffic studies, surveys or other reports, the cost of any required environmental mitigation and any required noise mitigation measures, landscaping and irrigation, soils testing, permits, plan check and inspection fees, insurance, legal and related overhead costs, coordination and supervision and any other cost or appurtenances. See also,"THE COMMUNITY FACILITIES DISTRICT— Acquisition of Improvements" regarding the Acquisition Agreement between the Authority and Harveston, LLC regarding certain of the Improvements which are to be acquired by the Authority from Harveston, LLC. The balance of the proceeds of the Series 2004 Bonds will be used (i) to fund interest on the Series 2004 Bonds through September 1, 2005, (ii) to pay certain administrative expenses of the District, (iii) to pay the costs of issuing the Series 2004 Bonds and (iv) to establish a Reserve Fund for the Series 2004 Bonds. The Authority has entered into a Joint Community Facilities Agreement between the Authority and the City whereby the City agrees to accept dedication of certain of the Improvements. ESTIMATED SOURCES AND USES OF FUNDS The proceeds from the sale of the Series 2004 Bonds will be deposited into the respective accounts and funds established by the Authority under the Fiscal Agent Agreement, as follows: Sources: Principal Amount of Series 2004 Bonds Less: Net Original Issue Discount Less: Underwriter's Discount Total Sources Uses: Deposit into Improvement Fund(') Deposit into Reserve Fund Deposit into Capitalized Interest Subaccount of the Bond Fun&') Deposit into Administrative Expense Fund Deposit into Cost of Issuance Fund(') Total Uses $ (n See "PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OF THE SERIES 2004 BONDS" above. a) Represents gross funded capitalized interest through September 1, 2005. �') Includes, among other things, the fees and expenses of Bond Counsel, Disclosure Counsel, the financial advisor, the Special Tax Consultant and the Fiscal Agent, the cost of printing the Preliminary and final Official Statements and reimbursement to the District and Harveston, LLC for costs advanced towards the issuance of Bonds and the formation of the District. THE SERIES 2004 BONDS Description of the Series 2004 Bonds The Series 2004 Bonds will be dated their date of delivery and will bear interest at the rates per annum set forth on the cover page hereof, payable semiannually on each March 1 and September 1, commencing on March 1, 2005 (each, an "Interest Payment Date"), and will mature in the amounts and on the dates set forth on the inside cover page hereof. The Series 2004 Bonds will be issued in fully registered form in denominations of $5,000 each or any integral multiple thereof and when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), New York, New York. DTC will act as securities depository for the Series 2004 Bonds. Ownership interests in the Series 2004 Bonds may be purchased in book -entry form only, in denominations of $5,000 or any integral multiple thereof within a single maturity. So long as the Series 2004 Bonds are held in book -entry form, principal of, premium, if any, and interest on the Series 2004 Bonds will be paid directly to DTC for distribution to the beneficial owners of the Series 2004 Bonds in accordance with the procedures adopted by DTC. See "THE SERIES 2004 BONDS — Book -Entry and DTC." The Series 2004 Bonds will bear interest at the rates set forth on the inside cover hereof payable on the Interest Payment Dates in each year. Interest will be calculated on the basis of a 360-day year comprised of twelve 30-day months. Each Series 2004 Bond shall bear interest from the March 1 or September 1 (each an "Interest Payment Date") next preceding the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date (as defined below) preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Bond Date; provided, however, that if at the time of authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. The principal of, and interest and premium, if any, payable on the Series 2004 Bonds shall be payable when due, by wire transfer of the Fiscal Agent, to The Depository Trust Company, New York, New York ("DTC"), which will in turn remit such principal, interest and premium, if any, to its Participants (as described in APPENDIX I — "Book -Entry System"), which Participants will in turn remit such principal, interest and premium, if any, to the Beneficial Owners (as defined in APPENDIX I — "Book -Entry System") of the Series 2004 Bonds as described below under APPENDIX I — "Book -Entry System." In the event that the Series 2004 Bonds are not registered in the name of Cede & Co., as nominee of DTC or another eligible depository as described below, both the principal and redemption price, including any premium, of the Series 2004 Bonds shall be payable by check in lawful money of the United States of America upon presentation of the Series 2004 Bonds at the principal office of the Fiscal Agent as specified in the Fiscal Agent Agreement; and interest on the Series 2004 Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed on the Interest Payment Dates by first class mail to the registered owner thereof at such registered owner's address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer to an account within the United States made on such Interest Payment Date upon written instructions of any Bondowner of $1,000,000 or more in aggregate principal amount of Series 2004 Bonds received before the applicable Record Date, which instructions shall continue in effect until revoked in writing, or until such Series 2004 Bonds are transferred to a new Bondowner. The Series 2004 Bonds are issuable only as fully registered Bonds without coupons in denominations of $5,000 or any integral multiple of $5,000 in excess thereof. The registered owner of any Series 2004 Bond will be the person or persons in whose name or names a Series 2004 Bond is registered on the registration books kept for that purpose by the Fiscal Agent in accordance with the terms of the Fiscal Agent Agreement. The "Record Date" with respect to any Series 2004 Bonds, means the fifteenth day of the month next preceding the month of the applicable Interest Payment Date, whether or not such day is a Business Day. So long as the Series 2004 Bonds are in book -entry only form, all references in this Official Statement to the owners or holders of the Series 2004 Bonds means DTC and not the Beneficial Owners. Debt Service Schedule The following table presents the annual debt service on the Series 2004 Bonds (including sinking fund redemptions), assuming that there are no optional redemptions or mandatory redemptions from prepayments of special taxes. Year Ending Total September 1 Principal Interest Debt Service 2005 — $ $ 2006 $ 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Terms of Redemption The Series 2004 Bonds are subject to redemption upon the circumstances, on the dates and at the prices set forth as follows. Optional Redemption. The Series 2004 Bonds maturing on or after September 1, 20 are subject to optional redemption prior to their stated maturity on any Interest Payment Date on or after September 1, 20 , as a whole, or in part among maturities so as to maintain substantially level debt service on the Bonds and by lot within a maturity, at a redemption price (expressed as a percentage of the principal amount of the *Preliminary, subject to change. E Series 2004 Bonds to be redeemed), as set forth below, together with accrued interest thereon to the date fixed for redemption: Redemption Date Redemption Price September 1, 20_ through March 1, 20_ 102% September 1, 20_ and any Interest Payment 100 Date thereafter Mandatory Sinking PaymentRedemption. The Series 2004 Bonds maturing on September 1, 20 are subject to mandatory sinking payment redemption in part on September 1, 20 , and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as follows: Redemption Date Sinking Payments 20 $ 20 20_ (maturity) The Series 2004 Bonds maturing on September 1, 2034, are subject to mandatory sinking payment redemption in part on September 1, 20 , and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as follows: Sinking Fund Redemption Date Sinking Payments 20 $ 20 20 20 20 20 20 20_ (maturity) The amounts in the foregoing tables shall be reduced to the extent practicable so as to maintain level debt service on the Series 2004 Bonds as a result of any prior partial redemption of the Series 2004 Bonds pursuant to an optional redemption or mandatory redemption from prepaid Special Taxes as specified in writing by the Treasurer to the Fiscal Agent. Redemption from Special Tax Prepayments. Special Tax Prepayments and any corresponding transfers from the Reserve Fund shall be used to redeem the Series 2004 Bonds on the next Interest Payment Date for which notice of redemption can timely be given, by lot and allocated among maturities of the Series 2004 Bonds so as to maintain substantially level debt service on the Bonds, at a redemption price (expressed as a percentage at the principal amount of the Series 2004 Bonds to be redeemed), as set forth below, together with accrued interest to the date fixed for redemption: Redemption Date Redemption Price Any Interest Payment Date from March 1, 2005 102% to and including March 1, 20 September 1, 20_ and any Interest Payment 100 10 Purchase In Lieu of Redemption. In lieu of any redemption, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding Series 2004 Bonds, upon the filing with the Fiscal Agent of an officer's certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such officer's certificate may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase and any premium which would otherwise be due if such Series 2004 Bonds were to be redeemed in accordance with the Fiscal Agent Agreement. Notice of Redemption. The Fiscal Agent shall cause notice of any redemption to be mailed by first class mail, postage prepaid, at least thirty (30) days but not more than sixty (60) days prior to the date fixed for redemption, to the Underwriter, to the Securities Depositories, to one or more Information Services, and to the respective registered Bondowners of any Series 2004 Bonds designated for redemption, at their addresses appearing on the Bond registration books in the principal office of the Fiscal Agent; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds. Such notice shall state the redemption date and the redemption price and, if less than all of the then Outstanding Series 2004 Bonds are to be called for redemption, shall designate the CUSIP numbers and Bond numbers of the Series 2004 Bonds to be redeemed by giving the individual CUSIP number and Bond number of each Series 2004 Bond to be redeemed or shall state that all Series 2004 Bonds between two stated Bond numbers, both inclusive, are to be redeemed or that all of the Series 2004 Bonds of one or more maturities have been called for redemption, shall state as to any Series 2004 Bond called in part the principal amount thereof to be redeemed, and shall require that such Series 2004 Bonds be then surrendered at the principal office of the Fiscal Agent for redemption at the said redemption price, and shall state that further interest on such Series 2004 Bonds will not accrue from and after the redemption date. Partial Redemption. Whenever provision is made in the Fiscal Agent Agreement for the redemption of less than all of the Bonds or any given portion thereof, the Fiscal Agent shall select the Bonds to be redeemed, from all Bonds or such given portion thereof not previously called for redemption, among maturities as directed in writing by the Treasurer (who shall specify Bonds to be redeemed so as to maintain, as much as practicable, the same debt service profile for the Bonds as in effect prior to such redemption, unless otherwise specified herein), and by lot within a maturity in any manner which the Fiscal Agent deems appropriate. Upon surrender of Bonds redeemed in part only, the Authority shall execute and the Fiscal Agent shall authenticate and deliver to the registered Bondowner, at the expense of the Authority, a new Bond or Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds. Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the Series 2004 Bonds so called for redemption shall have been deposited in the Bond Fund, such Series 2004 Bonds so called shall cease to be entitled to any benefit under the Fiscal Agent Agreement other than the right to receive payment of the redemption price, and no interest shall accrue thereon on or after the redemption date specified in such notice. Transfer and Exchange of Bonds Any Series 2004 Bond may, in accordance with the terms of the Fiscal Agent Agreement, be transferred upon the books of the Fiscal Agent required to be kept pursuant to the Fiscal Agent Agreement by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Series 2004 Bond for cancellation, accompanied by delivery of a written instrument of transfer in a form acceptable to the Fiscal Agent. Series 2004 Bonds may be exchanged at the principal office of the Fiscal Agent for a like aggregate principal amount of Series 2004 Bonds of authorized denominations and of the same series and maturity. The Fiscal Agent shall collect from the Bondowner requesting such exchange any tax or other governmental charge required to be paid with respect to such transfer or exchange. No transfer or exchange shall be required to be made of any Series 2004 Bonds (i) fifteen days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond 11 after such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding Interest Payment Date. Book -Entry and DTC The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Series 2004 Bonds. The Series 2004 Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered Series 2004 Bond certificate will be issued for each maturity of the Series 2004 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. All references in this Official Statement to the Bondowners or an owner of Series 2004 Bonds shall mean DTC or its designee and not the beneficial owners of the Series 2004 Bonds. See APPENDIX I — "Book -Entry System." SECURITY FOR THE SERIES 2004 BONDS General The Bonds are secured by a pledge of all of the Special Tax Revenues and, all moneys deposited in the Bond Fund, the Reserve Fund and, until disbursed as provided in the Fiscal Agent Agreement, in the Special Tax Fund. Pursuant to the Act and the Fiscal Agent Agreement, the Authority will annually levy in each Fiscal Year the Special Taxes in an amount required for the payment of principal of and interest on any outstanding Bonds becoming due and payable during the calendar year commencing in each Fiscal Year, including any necessary replenishment of Reserve Fund for the Bonds and an amount estimated to be sufficient to pay the Administrative Expenses during such year. The Special Tax Revenues and all deposits into said funds (until disbursed as provided in the Fiscal Agent Agreement) are pledged to the payment of the principal of, and interest and any premium on, the Bonds as provided in the Fiscal Agent Agreement and in the Act until all of the Bonds have been paid and retired or until moneys or Federal Securities (as defined in the Fiscal Agent Agreement) have been set aside irrevocably for that purpose. Amounts in the Administrative Expense Fund, the Cost of Issuance Fund, and the Improvement Fund are not pledged to the repayment of the Series 2004 Bonds. The Improvements constructed or acquired with the proceeds of the Series 2004 Bonds are not in any way pledged to pay the debt service on the Series 2004 Bonds. Any proceeds of condemnation or destruction of any Improvements financed with the proceeds of the Series 2004 Bonds are not pledged to pay the debt service on the Series 2004 Bonds and are free and clear of any lien or obligation imposed under the Fiscal Agent Agreement. Special Taxes The Authority has covenanted in the Fiscal Agent Agreement to comply with all requirements of the Act so as to assure the timely collection of Special Taxes, including without limitation, the enforcement of delinquent Special Taxes. The Fiscal Agent Agreement provides that the Special Taxes are payable and will be collected in the same manner and at the same time and in the same installment as the general taxes on real property, and will have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the general taxes on real property; provided, the Authority may provide for direct collection at other times of the Special Taxes in certain circumstances. Because the Special Tax levy is limited to the maximum Special Tax rates set forth in the Rate and Method, no assurance can be given that, in the event of Special Tax delinquencies, the receipts of Special Taxes will, in fact, be collected in sufficient amounts in any given year to pay debt service on the Series 2004 Bonds. Although the Special Tax, when levied, will constitute a lien on parcels subject to taxation within the District, it does not constitute a personal indebtedness of the owners of property within the District. There is no assurance that the owners of real property in the District will be financially able to pay the annual Special Tax or that they will pay such tax even if financially able to do so. See `BONDOWNERS' RISKS" herein. 12 NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED EXTENT DESCRIBED HEREIN) OR THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE SERIES 2004 BONDS. OTHER THAN THE SPECIAL TAXES OF THE DISTRICT, NO TAXES ARE PLEDGED TO THE PAYMENT OF THE SERIES 2004 BONDS. THE SERIES 2004 BONDS ARE NOT A GENERAL OBLIGATION OF THE AUTHORITY OR THE DISTRICT, BUT ARE LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM SOURCES PROVIDED IN THE FISCAL AGENT AGREEMENT. Rate and Method General. The Special Tax is levied and collected according to the Rate and Method set forth in APPENDIX B —"Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Rate and Method of Apportionment of Special Tax." The qualified electors of the District approved the Rate and Method on November 25, 2003. Capitalized terms used in the following paragraphs but not defined herein have the meanings given them in the Rate and Method. The Rate and Method provides the means by which the Board of Directors of the Authority may annually levy the Special Taxes within the District up to the Maximum Special Tax. The Rate and Method provides that the Annual Special Tax may be levied for a period not to exceed 50 fiscal years, commencing with Fiscal Year 2004-05. Special Tax Requirement. Annually, at the time of levying the Special Tax for Improvements with respect to the District, the Authority will determine the amount of money to be collected from Taxable Property in the District that which will be the amount required in any Fiscal Year for: (a) (i) pay debt service on all outstanding Bonds for the calendar year that commences in such Fiscal Year; (ii) pay periodic costs on the Bonds, including, but not limited to, credit enhancement, liquidity support and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amount required to establish or replenish any reserve funds for any outstanding Bonds; less (b) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Fiscal Agent Agreement. Developed and Undeveloped Property; Exempt Property. The Rate and Method declares that for each Fiscal Year, all Parcels of Taxable Property within the District shall be classified as either Developed Property, Update Property, Undeveloped Property and/or Property Owner's Association Property that is not Exempt Property and shall be subject to the levy of Special Taxes in accordance with the Rate and Method. "Taxable Property" means all of the Assessor's Parcels within the boundaries of the Community Facilities District that are not exempt from the Special Tax pursuant to law or the Rate and Method. "Developed Property" means all Taxable Property, exclusive of Property Owner Association Property and Public Property, for which (a) a Final Subdivision was recorded prior to the January 1" preceding the Fiscal Year in which the Special Tax is being levied and (b) a building permit was issued after January 1, 2003, but prior to the April I' preceding the Fiscal Year in which the Special Tax is being levied. "Update Property" means an Assessor's Parcel of Undeveloped Property for which a building permit has been issued, but which has not yet been classified as Developed Property, Taxable Property Owner Association Property or Taxable Public Property. "Public Property" means any property within the boundaries of the Community Facilities District that is used for rights -of -way or any other purpose and is owned by or irrevocably offered for dedication to the Federal Government, the State, the County, the City or any other public agency. Once a parcel has been designated as Public Property, it shall retain such status permanently. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Property Owner Association Property or Taxable Public Property. The Rate and Method provides exemptions from the Special Tax on up to 107.44 Acres of Property .Owner Association Property, Public Property, and Service Commercial Property. The Community Facilities District Administrator will assign tax-exempt status to Assessor's Parcels in the chronological order in which such Parcels are known to the Community Facilities District Administrator to become Property Owner Association Property, Public Property or Service Commercial Property. Once an Assessor's Parcel of Public Property has been classified as exempt, its tax-exempt status will be permanent, independent of its future uses. Property Owner Association Property or Public Property that is not exempt from Special Tax levies under this section shall be subject to the levy of Special Tax and shall be taxed Proportionately as part of the fourth 13 and fifth steps, respectively, of the levy described below, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property. All Assessor's Parcels that have fully prepaid their Special Tax Lien pursuant to the Rate and Method are exempt from future Special Tax levies. Maximum Special Tax. The Maximum Special Tax is defined in the Rate and Method as follows: Developed Property. The Maximum Special Tax shall be the greater of (i) the amount derived by application of the Assigned Special Tax described in the Rate and Method, or (ii) the amount derived by application of the Backup Special Tax. The Assigned Special Tax for Developed Property, is $327 per Single -Family Property and Apartment Property and $2,525 per acre for Non -Residential Property in the Community Facilities District. See APPENDIX B — "Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Rate and Method of Apportionment of Special Tax — Table I" herein for a listing of the Assigned Annual Special Tax amount for various sizes of units in the District. Backup Special Tax. The Backup Special Tax for Developed Property shall be $2,525 per Acre for Parcels of Developed Residential Property and Non -Residential Property. Method ofApportionment. The Rate and Method provides that commencing with Fiscal Year 2004- 05, and for each following Fiscal Year, the Community Facilities District Administrator shall levy the Special Tax as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax as needed to satisfy the Special Tax Requirement; Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement; Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property up to the Maximum Special Tax for Taxable Property Owner Association Property; and Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property up to the Maximum Special Tax for Taxable Public Property. Notwithstanding the above, under no circumstances will the Special Taxes levied against any Assessor's Parcel of Residential Property used for private residential purposes be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the Community Facilities District. Prepayment in Full. The Special Tax obligation with respect to any Assessor's Parcel of Developed Property or Update Property may be fully prepaid. In addition, the Special Tax obligation or any Assessor's Parcel of Taxable Public Property and/or Taxable Property Owner Association Property may be prepaid. A prepayment may be made on an Assessor's Parcel only if there are no delinquent Special Tax levies with 14 respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the Community Facilities District Administrator with written notice of intent to prepay. Within 30 days of receipt such written notice, the Community Facilities District Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. The Community Facilities District Administrator may charge the Assessor's Parcel owner a reasonable fee for providing these figures, which must be paid by the owner of the Assessor's Parcel prior to the calculation of the prepayment amount. Prepayment must be made not less than 15 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Fiscal Agent pursuant to the Fiscal Agent Agreement. Prepayment in Part. The Maximum Special Tax on a Parcel of Developed Property or Update Property may also be partially prepaid. The amount of the prepayment shall be calculated pursuant to the Rate and Method. Special Taxes and the Teeter Plan The County has adopted a Teeter Plan as provided for in Section 4701 et seq. of the California Revenue and Taxation Code, under which a tax distribution procedure is implemented and secured roll taxes are distributed to taxing agencies within the County on the basis of the tax levy, rather than on the basis of actual tax collections. By policy, the County does not include assessments, reassessments and special taxes, including the Special Taxes of the District, in its Teeter program. Proceeds of Foreclosure Sales Pursuant to Section 53356.1 of the Act, in the event of any delinquency in the payment of the Special Tax, the District may order the institution of a Superior Court action to foreclose the lien therefor within specified time limits. In such an action, the real property subject to the unpaid amount may be sold at judicial foreclosure sale. Such judicial foreclosure action is not mandatory. Under the Fiscal Agent Agreement, on or about February 15 and June 15 of each Fiscal Year, the Treasurer shall compare the amount of Special Taxes theretofore levied in the District to the amount of Special Tax Revenue theretofore received by the Authority, and: Individual Delinquencies. If the Treasurer determines that any single parcel subject to the Special Tax in the District is delinquent in the payment of Special Taxes in the aggregate amount of $1,000 or more, then the Treasurer will send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 45 days of such determination, and (if the delinquency remains uncured) foreclosure proceedings will be commenced by the Authority within 90 days of such determination. Notwithstanding the foregoing, the Treasurer may defer such action if the amount in the Reserve Fund is at least equal to the Reserve Requirement. Aggregate Delinquencies. If the Treasurer determines that (i) the total amount of delinquent Special Tax for the prior Fiscal Year for the entire District (including total individual delinquencies described above) exceeds 5% of the total Special Tax due and payable for the prior Fiscal Year or (ii) there are ten (10) or fewer owners of real property in the District, determined by reference to the latest available secured property tax roll of the County, the Treasurer shall notify or cause to be notified property owners who are then delinquent in the payment of Special Taxes (and demand immediate payment of the delinquency) within 45 days of such determination, and the Authority will commence foreclosure proceedings within 90 days of such determination against each parcel of land in the District with a Special Tax delinquency. It should be noted that any foreclosure proceedings commenced as described above could be stayed by the commencement of bankruptcy proceedings by or against the owner of the delinquent property. See "BONDOWNERS' RISKS — Bankruptcy and Foreclosure Delay." No assurances can be given that a judicial foreclosure action, once commenced, will be completed or that it will be completed in a timely manner. See `BONDOWNERS' RISKS — Potential Delay and Limitations in Foreclosure Proceedings." If a judgment of foreclosure and order of sale is obtained, the judgment creditor (the District) must cause a Notice of Levy to be issued. Under current law, ajudgment debtor (property owner) has 120 days (or in certain limited cases a shorter period) from the date of service 15 of the Notice of Levy and 20 days from the subsequent notice of sale in which to redeem the property to be sold. If ajudgment debtor fails to so redeem and the property is sold, his only remedy is an action to set aside the sale, which must be brought within 90 days of the date of sale. If, as a result of such action, a foreclosure sale is set aside, the judgment is revived and the judgment creditor is entitled to interest on the revived judgment as if the sale had not been made. The constitutionality of the aforementioned legislation, which repeals the former one-year redemption period, has not been tested; and there can be no assurance that, if tested, such legislation will be upheld. Any parcel subject to foreclosure sale must be sold at the minimum bid price unless a lesser minimum bid price is authorized by the owners of 75% of the principal amount of the Bonds Outstanding. No assurances can be given that the real property subject to sale or foreclosure will be sold or, if sold, that the proceeds of sale will be sufficient to pay any delinquent Special Tax installment. The Act does not require the Authority or the District to purchase or otherwise acquire any lot or parcel of property offered for sale or subject to foreclosure if there is no other purchaser at such sale. The Act does specify that the Special Tax will have the same lien priority in the case of delinquency as for ad valorem property taxes. If delinquencies in the payment of Special Taxes exist, there could be a default or delay in payments to the Bondowners of the Series 2004 Bonds pending prosecution of foreclosure proceedings and receipt by the District of foreclosure sale proceeds, if any. However, within the limits of the Rate and Method of Apportionment and the Act, the District may adjust the Special Taxes levied on all property within the District in future Fiscal Years to provide an amount, taking into account such delinquencies, required to pay debt service on the Bonds. There is, however, no assurance that the maximum Special Tax rates will be at all times sufficient to pay the amounts required to be paid on the Bonds by the Fiscal Agent Agreement. Special Tax Fund Pursuant to the Fiscal Agent Agreement, all Special Tax Revenues received by the District will be deposited in the Special Tax Fund, which will be held by the Fiscal Agent on behalf of the District. Moneys in the Special Tax Fund shall be held in trust by the Fiscal Agent for the benefit of the District and the Bondowners. Pending disbursement, moneys in the Special Tax Fund will be subject to a lien in favor of the Bondowners and the District established under the Fiscal Agent Agreement. Disbursements. Moneys in the Special Tax Fund will be disbursed as needed to pay the obligations of the District as provided in the Fiscal Agent Agreement. The Authority shall promptly remit any Special Tax Revenues received by it to the Fiscal Agent for deposit by the Fiscal Agent to the Special Tax Fund. Any Special Tax Revenues constituting payment of the portion of the Special Tax levy for Administrative Expenses shall be deposited by the Treasurer in the Administrative Expense Fund and any proceeds of Special Tax Prepayments shall be transferred by the Treasurer to the Fiscal Agent for deposit by the Fiscal Agent directly in the Special Tax Prepayments Account established in the Bond Fund. On each Interest Payment Date, the Fiscal Agent shall withdraw from the Special Tax Fund and transfer the following amounts in the following order of priority (i) to the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund and any expected transfers from the Improvement Fund, the Reserve Fund, the Capitalized Interest Account and the Special Tax Prepayments Account to the Bond Fund, such that the amount in the Bond Fund equals the principal (including any sinking payment), premium, if any, and interest due on the Bonds on such Interest Payment Date and (ii) to the Reserve Fund an amount, taking into account amounts then on deposit in the Reserve Fund, such that the amount in the Reserve Fund is equal to the Reserve Requirement. Investment. Moneys in the Special Tax Fund will be invested and deposited by the Authorized Officer as described in " — Investment of Moneys in Funds" below. Interest earnings and profits resulting from such investment and deposit will be retained in the Special Tax Fund to be used for the purposes of such Fund. Bond Fund The Fiscal Agent will hold the Bond Fund in trust forthe benefit of the Bondowners. There is created in the Bond Fund, as separate accounts to be held by the Fiscal Agent, the Capitalized Interest Account and the Special Tax Prepayments Account. Moneys in the Bond Fund and the accounts therein shall be disbursed 16 for the payment of the principal of, and interest and any premium on, the Bonds and for the other purposes as provided below, and, pending such disbursement, shall be subject to a lien in favor of the owners of the Bonds. Special Tax Prepayments Account. Moneys in the Special Tax Prepayments Account shall be transferred by the Fiscal Agent to the Bond Fund on the next date for which notice of redemption of Bonds can timely be given under the Fiscal Agent Agreement and shall be used (together with any applicable amounts transferred form the Reserve Fund) to redeem Bonds on the applicable redemption date. Capitalized Interest Account. Moneys in the Capitalized Interest Account shall be transferred to the Bond Fund on the Business Day prior to each Interest Payment Date, in the amount equal to and to be used for the payment of interest on the Bonds due on the next succeeding Interest Payment Date; provided that no such transfer shall exceed the amount then on deposit in the Capitalized Interest Account. Bond Fund. On each Interest Payment Date, the Fiscal Agent shall withdraw from the Bond Fund and pay to the owners of the Bonds the principal, and interest and any premium, then due and payable on the Bonds, including any amounts due on the Bonds by reason of the sinking payments or an optional William Lyon Homes, Inc.redemption of the Bonds. In the event that amounts in the Bond Fund are insufficient for the purposes set forth in the preceding sentence, the Fiscal Agent shall withdraw from the Reserve Fund to the extent of any funds therein amounts to cover the amount of such Bond Fund insufficiency. If, after the foregoing transfers, there are insufficient funds in the Bond Fund to make the payments provided for above, the Fiscal Agent shall apply the available funds first to the payment of interest on the Bonds, then to the payment of principal due on the Bonds other than by reason of sinking payments, and then to the payment of principal due on the Bonds by reason of sinking payments. Any sinking payment not made as scheduled shall be added to the sinking payment to be made on the next sinking payment date. Investment. Moneys in the Bond Fund, the Capitalized Interest Account and the Special Tax Prepayments Account shall be invested and deposited in accordance with the provisions of the Fiscal Agent Agreement relating to Investment of Moneys. See APPENDIX E — "Summary of Certain Provisions of the Fiscal Agent Agreement." Reserve Fund In order to further secure the payment of principal of and interest on the Series 2004 Bonds, certain proceeds of the Series 2004 Bonds will be deposited into the Reserve Fund in an amount equal to the Reserve Requirement (see "ESTIMATED SOURCES AND USES OF FUNDS" herein). Reserve Requirement is defined in the Fiscal Agent Agreement to mean with respect to the Series 2004 Bonds as an amount, as of any date of calculation, equal to the least of (i) the then the largest Annual Debt Service for any Bond Year after the calculation is made through the final maturity date of any Outstanding Bonds, (ii) 125% of the then average annual debt service on the Series 2004 Bonds, or (iii)10% of the original principal amount of the Series 2004 Bonds, less original issue discount, if any, plus original issue premium, if any. The moneys in the Reserve Fund will only be used for payment of principal of, interest and any redemption premium on, the Series 2004 Bonds and at the direction of the Community Facilities District, for payment of rebate obligations related to the Series 2004 Bonds. A draw on a Reserve Fund could occur as a result of Special Tax delinquencies. However, the Special Tax levy on Developed Property whose Maximum Special Tax is the Backup Annual Special Tax, can be increased in order to replenish the Reserve Fund only if and to the extent that amounts were withdrawn from the Reserve Fund as a result of delinquencies. See "SECURITY FOR THE SERIES 2004 BONDS — Rate and Method." If Special Taxes are prepaid and Series 2004 Bonds are to be redeemed with the proceeds of such prepayment, a proportionate amount in the Reserve Fund (determined on the basis of the principal of Series 2004 Bonds to be redeemed and the original principal of the Series 2004 Bonds) will be applied to the redemption of the Series 2004 Bonds. 17 Moneys in the Reserve Fund will be invested and deposited as described in "Investment of Moneys in Funds" below. See APPENDIX D — "Summary of the Fiscal Agent Agreement" for a description of the timing, purpose and manner of disbursements from the Reserve Fund. Investment of Moneys in Funds Moneys in any fund or account created or established by the Fiscal Agent Agreement and held by the Fiscal Agent will be invested by the Fiscal Agent in Permitted Investments, as directed by an Authorized Officer, that mature prior to the date on which such moneys are required to be paid out under the Fiscal Agent Agreement. In the absence of any direction from an Authorized Officer, the Fiscal Agent will invest, to the extent reasonably practicable, any such moneys in money market funds rated in the highest rating category by Moody's or S&P, (including those for which the Fiscal Agent or its affiliates or its subsidiaries provide investment, advisory or other services). See APPENDIX E — "Summary of Certain Provisions of the Fiscal Agent Agreement" for a definition of "Permitted Investments." Rebate Requirement The Authority is required to calculate excess investment earnings ("Excess Investment Earnings") in accordance with the requirements set forth in the Fiscal Agent Agreement. The Authority shall calculate Excess Investment Earnings and if necessary may use amounts in the Administrative Expense Fund and in the Reserve Fund, and any other funds available to the District, including amounts advanced by the Authority, in its sole discretion, to be repaid by the District as soon as practicable from amounts described in the preceding clause, to satisfy its obligations under Section 148(f) of the Code. Additional Bonds for Refunding Purposes Only Bonds issued on a parity with the Series 2004 Bonds (each a series of "Additional Bonds") may be issued for refunding purpose only where the issuance of such Additional Bonds results in a reduction of Annual Debt Service on all Outstanding Bonds. See APPENDIX E— "Summary of Certain Provisions of the Fiscal Agent Agreement." The District may issue bonds or other obligations payable from Net Taxes which are subordinate to the Series 2004 Bonds. Nothing in the Fiscal Agent Agreement shall prohibit the Authority from issuing bonds or otherwise incurring debt secured by a pledge of Special Tax Revenues subordinate to the pledge thereof. THE AUTHORITY The Temecula Public Financing Authority was established pursuant to a Joint Exercise of Powers Agreement, dated April 10, 2001 (the "Joint Powers Agreement"), by and between the City and the Redevelopment Agency of the City of Temecula. The Joint Powers Agreement was entered into pursuant to the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title I of the Government Code of the State of California. The Authority was formed for the primary purpose of assisting in the financing and refinancing of public capital improvements in the City. The Authority is administered by a five -member Board of Directors, which currently consists of the members of the City Council of the City. The Authority has no independent staff. The Executive Director of the Authority is the City Manager of the City, and the Treasurer of the Authority is the City's Finance Director. The Executive Director administers the day-to-day affairs of the Authority, and the Treasurer has custody of all money of the Authority from whatever source. Authority for Issuance The Series 2004 Bonds are issued pursuant to the Act and the Fiscal Agent Agreement. In addition, as required by the Act, the Board of Directors of the Authority has taken the following actions with respect to establishing the District and authorizing issuance of the Series 2004 Bonds: 18 Resolutions of Intention: On October 22, 2003, the Board of Directors of the Authority adopted Resolution No. TPFA 03-20 stating its intention to establish the District and to authorize the levy of a special tax therein, and on the same day the Authority adopted Resolution No. TPFA 03-21 stating its intention to incur bonded indebtedness in an amount not to exceed $5,500,000 within the District for the purpose of financing the cost ofthe Improvements. See"PLAN OF FINANCE; IMPROVEMENTS TO BE FINANCED WITH PROCEEDS OF THE SERIES 2004 BONDS" herein. Resolution of Formation: Immediately following the conclusion of a noticed public hearing on November 25, 2003, the Authority adopted Resolution No. TPFA 03-27 (the "Resolution of Formation"), which established the District and authorized the levy of a special tax within the District. Resolution of Necessity: On November 25, 2003, the Authority adopted Resolution No. TPFA 03-28 declaring the necessity to incur bonded indebtedness in an amount not to exceed $5,500,000 within the District and submitting that proposition to the qualified electors of the District. Resolution Calling Election: On November 25, 2003, the Authority adopted Resolution No. TPFA 03-29 calling an election by the landowners for the same date on the issues of the levy of the Special Tax, the incurring of bonded indebtedness and the establishment of an appropriations limit. Landowner Election and Declaration ofResults: On November 25, 2003, an election was held within the District in which the landowners eligible to vote, being the qualified electors within the District, unanimously waived all time limits for holding the election and ballot arguments, and approved a ballot proposition authorizing the issuance of up to $5,500,000 in bonds to finance the costs of the Improvements, the levy of a special tax and the establishment of an appropriations limit for the District. On November 25, 2003, the Authority adopted Resolution No. TPFA 03-30, pursuant to which the Authority approved the canvass of the votes and declared the District to be fully formed with the authority to levy the Special Taxes, to incur the bonded indebtedness and to have the established appropriations limit. Special Tax Lien and Levy: A Notice of Special Tax Lien was recorded in the real property records of Riverside County on December 11, 2003 as Document No. 2003-970556. Ordinance Levying Special Taxes: On November 25, 2003, the Authority adopted Ordinance No. 2003-02 levying the Special Tax within the District. Resolution Authorizing Issuance of the Series 2004 Bonds: On August 10, 2004, the Authority adopted Resolution No. TPFA 04-_ approving issuance of the Series 2004 Bonds. 19 [INSERT SPECIFIC PLAN MAP HERE] THE COMMUNITY FACILITIES DISTRICT Location and Description of the District The District consists of unimproved land and semi -finished land located in the northern portion of the City. The District is bounded generally on the west by Interstate 15, on the north by the boundary line with the City of Murrieta, on the east by Margarita Road and by Winchester Hills Road on the south. The property within the District is a portion of the property governed by the Harveston Specific Plan. Harveston, LLC, LEN-Inland, LLC and the Lennar Optionees currently own or have options to acquire most of the property in the District and are planning it for development with a mixture of residential, school, park, open space and commercial/industrial uses (collectively, the "Project'). William Lyon Homes, Inc. and PLC Harveston, LLC also own property in the District. See "PROPERTY OWNERSHIP" herein. Lennar Homes purchased property within the master planned community from Winchester Hills I LLC, a California limited liability company ("Winchester") pursuant to a Purchase Agreement and Escrow Instructions dated June 3, 1998 (the "Purchase Agreement') between Lennar Homes and Winchester. Such property was subsequently transferred to Harveston, LLC (the "Harveston, LLC Property). Pursuant to the Agreement and Covenants (See " PROPERTY OWNERSHIP—Lennar Optionees; LEN-Inland, LLC" below), Lennar Homes applied for and processed applications for the Harveston Specific Plan approval encompassing both the property retained by Winchester (the "Winchester Property") and the Harveston, LLC Property, and submitted an application for approval of a specific plan covering the Harveston, LLC Property and the Winchester Property. The Agreement and Covenants have been assigned to Harveston, LLC as successor to Lennar Homes. The District is part of a master -planned community that includes a large residential area surrounding the 17-acre lake and park in the center of the community. The District is a portion of a master planned community planned for a total of 1,621 single-family dwelling units, plus a 300-unit apartment complex. In addition, there is expected to be a 2.23-acre retail center in the center of the community, a private Lake House/Village Club, a park surrounding the lake connected to a paseo to the 20-acre community park, a child care center, a community facility and an approximately 12 acre elementary school, which opened in September, 2001. The master planned community is planned to be developed in four phases, which are referred to as Phase 1, Phase 2, Phase 2B and Phase 3, and comprise the central portion of the community. The entire community is encompassed within Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston), for which $17,310,000 aggregate principal amount of variable rate bonds were issued in August, 2002. The District encompasses Phase 2, Phase 2B and Phase 3 of the master planned community. Phase 1 is not within the boundaries of the District and while properties in Phase 1 will pay special taxes with respect to Community Facilities District No. 01-2 (Harveston), properties in Phase 1 will not pay Special Taxes with respect to the District. There are four tracts or neighborhoods of homes that are completed or nearing completion, a fifth neighborhood that will soon be under construction, and the apartment site. In addition, Phase 1 includes the completed lake and Lake Park, the retail center that is under construction, the Lake House/Village Club that is under construction, the child care center [that is complete/under construction, the community facility center site [that is complete/under construction], and the Ysabel Barnett Elementary School that is in operation. Phase 2 will include 7 different tracts or neighborhoods of homes, containing a total of 681 homes and two of these tracts or product types will be a carryover from Phase 1. Construction is just underway in the early stage on 6 of these 7 tracts. Phase 2 also includes the 20-acre community park which is under construction and due to be completed by August or September, 2004. It will include two lighted soccer fields and two lighted baseball fields. Phase 2B will include two different tracts containing a total of 198 detached homes. The lots are in a graded blue -top condition and are due to be delivered to Merchant Builders in August or September, 2004. 20 Phase 3 will include 4 different tracts containing a total of 382 homes, including 64 attached homes and 318 detached homes. The land is currently in a mass graded condition and is projected to be sold and delivered to Merchant Builders in late 2005. As of June 1, 2004, there are five landowners within the District. One large landowner is LEN- Inland, LLC, a Delaware limited liability company ("LEN-Inland, LLC") which owned property containing 426 home sites within Phase 2, of which 162 home sites are under option with Greystone Homes, Inc., a Delaware corporation ("Greystone Homes"), 145 home sites are under option with US Home Corporation, a Delaware corporation ("US Home") and 119 home sites are under option with Lennar Homes of California, Inc., a California corporation ("Lennar Homes"). Pursuant to the option agreements, 28 home sites have since been sold to Greystone Homes. A second large owner is Harveston, LLC, a Delaware limited liability company ("Harveston, LLC") (of which Lennar Homes is the Administrative Member), which owns the Phase 2 and Phase 2B property containing 580 home sites. LEN-Inland, LLC acquired the property it owns from Harveston, LLC in November, 2003. In addition, 162 home sites are owned by William Lyon Homes, Inc. ("William Lyon Homes, Inc.") and 78 home sites are owned by PLC Harveston, LLC, a Delaware limited liability company, of which Christopher Homes, Inc., a Delaware corporation ("Christopher Homes") is the Managing Member. Specific Plan The Harveston Specific Plan was adopted in August, 2001. The Harveston Specific Plan serves as a planning guide to implement the intent of the City's General Plan. The Harveston Specific Plan development concept includes a centrally located lake/park complex. Uses such as recreation, education and residential dwellings will be provided adjacent to or within a Village Center which is proposed to include a variety of uses such as retail, restaurant, office, daycare, worship and a private club facility and fitness center. Environmental Conditions EnvironmentallmpactReport. In connection with the Harveston Specific Planapproval and pursuant to the Agreement and Covenants, Lennar Homes was responsible for the application and processing of an environmental impact report (the "EIR") for both the Harveston, LLC Property and the Winchester Property. The FIR was approved in August, 2001. Biological Resources. Based upon the biological studies performed for the site, the property within the District does not include significant onsite biological resources. The Harveston Specific Plan proposes an arroyo park, which will include the creation of a riparian habitat to be developed consistent with the mitigation requirement of the U.S. Army Corps of Engineers (the "Corps of Engineers") and State Department of Fish and Game. Mitigation Relating to Waters ofthe United States. The development within the District required the construction of a culvert and the fill of approximately 2.89 acres of non -wetland waters of the U.S. tributary to Santa Gertrudis Creek. The Corps of Engineers has jurisdiction over developments in or affecting the navigable waters of the United States pursuant to the Rivers and Harbors Act and the Clean Water Act. On June 30, 1999, the Corps of Engineers determined that the activity complied with the terms and conditions of the nationwide permit issued under Section 404 of the Clean Water Act, provided that the activity met the criteria in the permit terms and conditions. The culvert and fill was completed in February, 2002 and facilities were certified in February, 2002. Streambed Alteration Agreement. Lennar Homes filed a request for a Section 1603 Streambed Alteration Agreement with the California Department of Fish and Game ("CDFG"). The CDFG and Lennar Homes entered into an Agreement Regarding Proposed Stream or Lake Alteration in April, 1999. The Agreement provides for the filling of approximately 6,000 feet of two channels and a culvert crossing over a third channel. Mitigation consists of establishing an over -story riparian area of approximately eight acres along one channel. The Agreement was extended to for project construction only and remains in effect for that time necessary to satisfy the terms/condition of the Agreement. Harveston, LLC, as successor to Lennar Homes, completed construction in in accordance with the terms of the 21 Agreement, subject to extensions. The work is substantially complete, and Harveston, LLC has filed for an extension in the event there is any subsequent work required. National Pollution Discharge Elimination System Permit and Storm Water Pollution Prevention Plan. Pursuant to the Federal Clean Water Act (Section 402(g)) and State General Construction Activity Storm Water Permit, a National Pollution Discharge Elimination System (NPDES) permit and storm water pollution prevention plan wasrequired from the California Regional Water Quality Control Board for grading and construction of areas greater than five acres. Lennar Homes had a revised Storm Water Pollution Prevention Plan prepared for the Project in conformance with the California NPDES General Permit No. CAS000002 for Storm Water Discharges Associated with Construction Activity (Construction Permit.). The permit and storm water pollution prevention plan were approved by the Regional Water Quality Control Board in October, 2001. Toxic materials are not known to have been treated, stored, disposed, spilled or leaked in significant quantities onto the Project site and no contaminated soils were found on the site. Prior to rough grading, the land was maintained as private vacant open space and free range grazing. The property was vacant for some time before being acquired by Lennar Homes. No significant spills or disposals of gasoline or diesel fuel are known to have occurred. Additional Approvals. Additional discretionary approval is needed for development in the District as contemplated by the EIR that would require additional environmental review by the City under the California Environmental Quality Act. Development Agreement Lennar Homes, Winchester and the City entered into a development agreement (the "Development Agreement"), recorded January 16, 2002 as Instrument No. 2002-026470, regarding the Project. Harveston, LLC is the successor to Lennar Homes as owner and developer of such property. For purposes of the Development Agreement, the proposed development includes the improvement of the Project sites for the purposes of construction and otherwise effecting the structure, improvements and facilities comprising the Project, including but not limited to grading, the construction of infrastructure and public facilities related to the Project (whether located within or outside the Harveston Specific Plan area), the construction of structures and buildings and the installation of landscaping. The widening of the Ynez Road Bridge over San Gertrudes Creek is described in the "First Operating Memorandum to the Recorded Development Agreement among Lennar Homes Inc. and Winchester Hills I, LLC and the City of Temecula," dated as of April 11, 2003, between Harveston, LLC, and the City. Pursuant to the terms of the Development Agreement, Harveston, LLC and Winchester have the right to develop the Project in any manner consistent with the City's approved Harveston Specific Plan, and applicable rules, regulations and official policies. The Project infrastructure is expected to be completed in March, 2006 with final sales to homeowners in June, 2007. The City has agreed that Harveston, LLC and Winchester shall have the right to develop the property in such order, at such rate and at such time as Harveston, LLC and Winchester deem appropriate within the exercise of its subjective business judgment, subject only to any timing or phasing requirements set forth in the development plan or the phasing plan as set forth in the Development Agreement and as long as the Project is constructed in a manner consistent with the City's existing land use ordinances. By entering into the Development Agreement, Harveston, LLC and Winchester obtained a vested right to proceed with the Project in accordance with the Harveston Specific Plan. However, development remains subject to any remaining discretionary approvals required in order to complete the Project as contemplated by the Harveston Specific Plan. Termination of the Development Agreement by one party due to the default of another party will not affect a right or duty emanating from City entitlements or approvals on the Project. The Development Agreement was approved and entered into pursuant to California Government Code Section 65864, et seq. (the "Development Agreement Law"). The Development Agreement Law 22 provides that a developer can obtain a vested right to develop its real property pursuant to a validly executed development agreement. One appellate case in California, Santa Margarita Residents v. San Luis Obispo County Bd. of Supervisors, has held that development agreements are enforceable under the Development Agreement Law. However, the development agreement in that case did not address vested right to build the development as currently planned. Section 3.5.5 of the Development Agreement allows the parties to enter into "operating memorandum" which do not amend the Development Agreement but which implement the terms of the Development Agreement or provide for "changes, adjustments, or clarifications [that] are appropriate to further the intended purposes" of the Development Agreement. The "First Operating Memorandum to the Recorded Development Agreement Between Lennar Homes Inc., and Winchester Hills I, LLC and the City of Temecula" was approved on April 11, 2003 and recorded as Document No. 2003- 293648 in the Official Records of Riverside County on April 25, 2003; the "Second Operating Memorandum to the Recorded Development Agreement Between Lennar Homes Inc. and Winchester Hills I, LLC and the City of Temecula" was also approved on April 11, 2003 and recorded as Document No. 2003-293649 in the Official Records of Riverside County on April 25, 2003; and the "Third Operating Memorandum to the Recorded Development Agreement Between Lennar Homes Inc. and Winchester Hills I, LLC and the City of Temecula" was approved on May 10, 2004 and recorded as Document No. 2004-0418836 in the Official Records of Riverside County on June 2, 2004. The widening of the Ynez Road Bridge over Santa Gertrudes Creek is described in the First Operating Memorandum. The First, Second and Third Operating Memorandum each describe and clarify the off -site public improvements required by the Development Agreement and the conditions of approval of the land use entitlements and provide a schedule for the issuance of up to 954 building permits prior to completion of the Community Park and up to 1,535 building permits if the bridge widening and certain off -site public improvements are completed and further provide for the withholding of building permits ifthe required off -site public improvements are not progressing as scheduled. The building permits referenced include those issued in Phase I. See `BONDOWNERS' RISKS — Failure to Develop Properties" and "— Ballot Initiatives and Legislative Measures" herein. Covenants, Conditions and Restrictions. All of the parcels in the District are subject to recorded covenants, conditions and restrictions that provide for a levy of homeowners' association assessments, on a basis subordinate to the lien of the Special Taxes. Settlement of Litigation Regarding Development In February, 2002, Lennar Homes entered into a Settlement Agreement relating to a referendum petition opposing the Ordinance approving the Development Agreement. [Lennar Homes] [Harveston, LLC]s has fulfilled all of its obligations under the Settlement Agreement, including payment of $150,000 to the City for park expansion. In September, 2001, a referendum petition opposing Temecula Ordinance No. 01-08 approving the Development Agreement was submitted by a resident to the City for determination of whether it had been signed by the requisite number of Temecula registered voters. On October 10, 2001, the Temecula City Clerk submitted the referendum petitions to the Registrar of Voters of the County of Riverside for verification of the signatures on the petitions. On October 15, 2001, the City filed an action for declaratory relief naming Lennar Homes and the author of the petition seeking to have the court declare whether the referendum petitions were valid. On December 21, 2001, the City rejected the petitions as invalid and dismissed its lawsuit. In February, 2002, Lennar Homes entered into a Settlement Agreement whereby the resident removed his previous opposition to the Project and agreed not to file a lawsuit or otherwise challenge in court or before any government agency with jurisdiction over the Project, any of the current or future entitlements vested by the Development Agreement or provided for in Ordinance No. 01-08, including, but not limited to, any effort to challenge the City's rejection of the referendum petition. In return, Lennar Homes agreed to enter into good faith negotiations with the City to voluntarily donate an additional three acres of parkland. In addition, Lennar Homes agreed to donate up to an additional $150,000 to the City at the time of the donation of parkland for the purpose of improving the community park and to pay to the resident an amount representing general damages sustained by him as a result of being named as the defendant in the declaratory relief action filed by the City. 23 Acquisition of Improvements The Authority and Harveston, LLC have entered into an Acquisition Agreement (the "Acquisition Agreement') dated as of August 1, 2002, as supplement by Supplement No. I to Acquisition Agreement dated as of November 25, 2003. Under the terms of the Acquisition Agreement, the Authority will acquire the Improvements from Harveston, LLC upon completion of various discrete components of infrastructure and inspection thereof by the City. The Acquisition Agreement provides that the infrastructure will be acquired for an amount based upon the documented Actual Cost (as defined in the Acquisition Agreement) thereof or for such other amount as may be agreed upon by Harveston, LLC and the Authority. N T119OI R n aVAIeIOI ley I I I: The information about Harveston, LLC, LEN-Inland, LLC and the Merchant Builders contained in this Official Statement has been provided by representatives of Harveston, LLC, LEN-Inland, LLC and the Merchant Builders and has not been independently confirmed or verified by the Underwriter, the District or the Authority. Such information is included because it may be relevant to an informed evaluation of the securityfor the Series 2004 Bonds. However, because ownership of the property may change at any time, no assurance can be given that the planned development will occur at all, will occur in a timely manner or will occur as presently anticipated and described below or that Harveston, LLC, LEN-Inland, LLC and the Merchant Builders will acquire or own the Property at all. No representation is made herein as to the accuracy or adequacy ofsuch information, as to the experience, abilities orfinancial resources ofHarveston, LLC, LEN-Inland, LLC and the Merchant Builders or any other landowner, or as to the absence ofmaterial adverse changes in such information subsequent to the date hereof, or that the information given below or incorporated herein by reference is correct as ofany time subsequent to its date. Harveston, LLC, LEN-Inland, LLC and the Merchant Builders are not personally liable for payment of the Special Taxes or the Series 2004 Bonds, and the following information should not be construed to suggest that the Special Taxes or the Series 2004 Bonds are personal obligations or indebtedness of the Harveston, LLC LEN-Inland, LLC and the Merchant Builders or that Harveston, LLC, LEN-Inland, LLC, and the Merchant Builders will continue to own their respective parcels of land. Description of Project Table I below sets forth information regarding the projects being developed in the District. While William Lyon Homes, Inc. and PLC Harveston, LLC have acquired their lots, and Greystone Homes has acquired 28 of its lots, there can be no assurance that the Lennar Optionees will close escrow on their lots within the District at the times indicated or at all. 24 Table 1 Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Property Ownership and Development Status Units Est. Completed Total or Under No. of Lots Status of Name of Number Construction for Which Status Development Landowner/ of as of There is a of as of Merchant Builderlo Tract Name Units June 1, 2004 Final Map Maps June 1, 2004 Phase2 William Lyon Homes, Inc. Savannah 162 0 0 Tentative approved; Graded to super pad (162) Finalin process condition. LEN-Inland LLC (53)- Ashville 53 0 0 Tentative approved; Graded to super pad Greystone Homes Final in process condition; 33 production homes in early stages of construction LEN-Inland, LLC (67)— Lake Front 67 33 67 Final approved 33production homes in US Home Cottages early stage of construction; models are provided through models for a related project in Phase I LEN-Inland, LLC (119)— Auburn Lane 119 30 119 Final approved 3 models and 27 Lennar Homes production homes in early stage of construction in Phase 1 LEN-Inland(81)—Greystone Sausalito 109 16 109 Final approved 3models and 13 Homes (28)' production homes in early stage of construction PLC Harveston, LLC (93)- Walden 93 3 93 Final approved 3 models in early stage of Christopher Homes construction LEN-Inland (78)- US Home Chatham 78 21 78 Final approved 3 models and 18 production homes in early stage of construction Subtotal 681 103 466 Phase 2B and 3 Harveston, LLC (26) Harveston, LLC (3) Subtotal Total 198 0 198 382 0 0 580 0 198 1,261 103 664 Final approved Graded blue top condition Tentative approved Mass graded condition I Ownership of home sites indicated in parenthesis. 28lots acquired by Greystone Homes as of June 1, 2004. Actual number of units may vary. A small area of property affecting 4 of the 1,261 proposed home sites may annex into the District. The annexation has not yet occurred and Harveston, LLC can not predict, when or if the annexation will occur. Lennar Optionees; LEN-Inland, LLC Lennar Corporation and its Subsidiaries. Lennar Homes of California, Inc. ("Lennar Homes") is a California corporation based in Mission Viejo, California, that has been in the business of developing residential real estate communities in California 25 since 1995. Lennar Homes is a wholly owned subsidiary of Lennar Homes, Inc., a Florida corporation, a wholly owned subsidiary of Lennar Corporation, a Delaware corporation ("Lennar Corporation"), with headquarters in Miami, Florida. Lennar Corporation, founded in 1954 and publicly traded under the symbol "LEN" since 1971, is one of the nation's largest home builders, operating under a number of brand names, including Lennar Homes, U.S. Home, and Greystone Homes in Southern California. At November 30, 2003 (Lennar Corporation's fiscal year-end), Lennar Corporation employed over 10,572 individuals, of whom approximately 6,786 were involved in homebuilding and land development operations, and owned approximately 74,000 home sites and had access to an additional 135,000 home sites through options or unconsolidated partnerships. Lennar Homes, Greystone Homes and US Home are, through various levels of ownership, subsidiaries of Lennar Corporation. LEN-Inland, LLC is not an affiliate of any of the Lennar Optionees. A brief description of each is provided below. Lennar Homes has been involved in the acquisition and development of residential real estate proj ects in Southern California since 1995. Representative master planned communities include: (i) Coto de Caza, an approximately 2,000 home development in South Orange County acquired in March of 1996 and substantially sold out, (ii) Stevenson Ranch, consisting of approximately 5,700 homes at build out in Los Angeles, County, California, (iii) Bressi Ranch, an approximately 500 acre mixed use community in Carlsbad, California which recently obtained entitlement approvals, (iv) Greer Ranch, an approximately 674 home gate - guarded community in Murrieta, California, which opened in the fall of 2002, and (v) The Bridges at Rancho Santa Fe, an exclusive, gated residential enclave located in San Diego, California, consisting of approximately 274 custom home sites and semi -custom homes in a private golf course setting. US Home, is a subsidiary of Lennar Corporation, is a merchant builder of production homes and has been involved in the acquisition and development of residential real estate projects in Southern California since 1995. US Home develops residential communities both within the Lennar family of builders and through consolidated and unconsolidated partnerships in which US Home maintains an interest. In Fiscal Year 2002, US Home delivered homes to in excess of 866 families in the areas of San Bernardino County and Riverside County generally referred to as the Inland Empire area of Southern California. Representative single family detached projects include: (i) Eastridge (96 units), Vintage (119 units), Camargo at the Greens (67 units), Canterbury at the Greens (96 units) Lakefront Cottages (119 units), Wellsley (70 units) and Crowne Hill (114 units) in the City of Temecula, and (ii) Volterra (110 units) and Vellagio (54 units) in the City of Lake Elsinore and Mariposa (119 units), Auburn Village (82 units) and Magnolia (73 units) in the City of Murrieta. Greystone Homes, is a subsidiary of US Home (who is a subsidiary of Lennar Corporation), is a merchant builder of production homes and has been involved in the acquisition and development of residential real estate projects in Southern California since 1991. Greystone Homes develops residential communities both within the Lennar family of builders and through consolidated and unconsolidated partnerships in which Greystone Homes maintains an interest. In Fiscal Year 2001-02, Greystone Homes delivered homes to in excess of 676 families in Southern California. Recent projects under development by Greystone Homes in the Inland Empire area of Southern California include the following: 26 Proposed Site Name Location Units Base Prices Square Feet Bedrooms Status Verona Murrieta 304 $I87,000-$235,000 730- 1,032 2 Phase 12 Rancho La Laguna Lake Elsinore 97 $515,000-$554,000 2,641 - 3,245 4 Phase 7 Shenandoah Murrieta 151 $371,500-$411,500 2,224-2,621 4 Phase 1 Saddleridge Murrieta 125 $426,000-$521,000 2,851 - 3,962 6 Phase 1 Montelena Rancho 91 $526,000-$566,000 2,539-2,933 4 Phase 2 Cucamonga Astoria Temecula 100 $526,000-$581,000 2,891 - 3,962 5 Phase 5 Fairmont Temecula 111 $411,0004450,000 2,283-2,846 4 Phase 6 Nottingham Temecula 119 $450,0004520,000 2,621-3,322 4 Phase 6 Copies of Lennar Corporation's Annual Report and related financial statements, prepared in accordance with generally accepted accounting standards, are available from Lennar Corporation's website at lennar.com. This Internet address is included for reference only and the information on the Internet site is not a part of this Official Statement or incorporated by reference into this Official Statement. No representation is made in this Official Statement as to the accuracy or adequacy ofthe information contained on the Internet site. Harveston, LLC. Lennar Homes develops residential communities both within the Lennar family of builders and through consolidated and unconsolidated partnerships in which Lennar Homes maintains an interest. In June, 2002, Lennar Homes sold the Harveston community to Harveston, LLC ("Harveston, LLC"), a Delaware limited liability company in which Lennar Homes maintains a 25% ownership interest, together with LBREP Harveston Holdings, LLC, a real estate company owned and operated by Lehman Brothers Real Estate Partners, LP ("LBREP Holdings"). The limited liability company was initially capitalized with total capital contributions of $52,200,000. All major decisions are made by representatives of Lennar Homes and LBREP Holdings, with equal representation. Lennar Homes acts as the Administrative Member of Harveston, LLC and is responsible for the day to day management of the affairs of the company. Lehman Brothers is a global investment bank serving the financial needs of corporations, institutions, governments and high net worth investors worldwide. Lehman Brothers actively participates in the global capital markets through a closely integrated network of offices anchored by a worldwide headquarters in New York and regional headquarters in London and Tokyo. The company operates in three segments: Investment Banking, Capital Markets and Client Services. Private equity investment activities represent an active and important component of Lehman Brothers worldwide business strategy. Lehman Brothers focuses its private equity activity in asset classes where it perceives a significant investment opportunity and where it possesses strong capabilities, proprietary deal flow and an excellent reputation. Lehman Brothers Real Estate Partners is a global real estate merchant banking fund formed to make equity investments in properties, real estate companies and service businesses ancillary to the real estate industry, primarily in North America and Western and Central Europe. The fund is Lehman Brothers' primary real estate investment vehicle, with capital commitments in excess of $1.6 billion. LEN-Inland, LLC. LEN-Inland, LLC is a Delaware limited liability company that acquired property previously owned by Harveston, LLC. LEN-Inland, LLC has entered into three (3) Option Agreements described below. It has no present intention of developing the property itself other than through the Option Agreements described below. As of June 1, 2004, LEN-Inland, LLC owned property containing 398 home sites within the District and had sold 28 home sites to Greystone Homes. Pursuant to the provisions of the Option Agreements described below, LEN-Inland, LLC granted US Home, Greystone Homes and Lennar Homes, or their assignees, the option to purchase all of the home sites subject to such Agreements. Under the Option Agreements, 145 of such home sites are expected to be developed by US Home, 162 of such home sites are expected to be developed by Greystone Homes, including 28 home sites which were acquired by Greystone Homes pursuant to such agreements in June, 2004, and 119 of such home sites are expected to be developed by Lennar Homes. Option Agreements. LEN-Inland, LLC entered into the following agreements in connection with the development of property it owns in the District (herein, the "Option Agreements"): A. Option and Right of First Refusal Agreement, dated as of November 10, 2003, with Greystone Homes, Inc., a Delaware corporation, relating to the 109 Units in Sarasota and the 53 Units in Ashville. B. Option and Right of First Refusal Agreement, dated as of November 10, 2003, with Lennar Homes of California, Inc., a California corporation, relating to the 119 Units in Auburn Lane. C. Option and Right of First Refusal Agreement, dated as of November 10, 2003, with US Homes of California, Inc., a Delaware corporation, relating to the 67 Units in Cottages and 78 Units in Chatham. The Option Agreements do not apply to the homes sites owned by William Lyon Homes, Inc. or PLC Harveston, LLC. Under their respective Option Agreements, US Home Corporation, Lennar Homes of California, Inc. and Greystone Homes, Inc. (herein, the "Lennar Optionees") have an option on a specific number of home sites within the respective development (the "Optioned Property") and a right of first refusal on the remaining parcels within the applicable developments (the "First Refusal Property"). Once the first set of Optioned Property is acquired by each of the Lennar Optionees, then a portion of the First Refusal Property becomes Optioned Property. The First Refusal Property may be offered for sale to third parties, and the applicable Lennar Optionee has ten days from its receipt of the third party offer to advise LEN-Inland, LLC, in writing, that it desires to exercise the right of first refusal on the same terms as the third party offer. The Option Agreements require that the Optioned Property close on a set schedule. The Lennar Optionees have the right to three extensions of the scheduled closing date, each in one month intervals and for a price equal to 1% of the purchase price for each parcel of Optioned Property. The Lennar Optionees may accelerate the takedown of the Optioned Property upon five days' written notice to LEN-Inland, LLC. Set forth below are the takedown schedules for each of the Lennar Optionees (assuming that there are no extensions, that there are no defaults and that none ofthe First Refusal Property is sold to third parties): Table 2 Takedown Schedule and Option Price Lennar Homes Takedown Schedule Auburn Lane (119 Units) Date of Takedown No. of Home Sites Price per Home Sites June 200419 27 $106,550 September 2004 27 106,550 December 2004 12 106,550 March 2005 24 106,550 June 2005 14 106,550 October 2005 15 106,550 Totals 119 $12,679,450 (0 Lennar Homes has extended the first takedown of the Auburn Lane home sites and expects to purchase these home sites in 2004. 28 Greystone Homes Takedown Schedule Sarasota (109 Units) and Ashville (53 Units) Sarasota Ashville No. of Price per No. of Date of Takedown Home sites Home site Home sites Price per Home site June 2004(') 24 $123,998 n/a n/a September 2004 24 123,998 25 $111,004 December 2004 15 123,998 13 111,004 March 2005 24 123,998 15 111,004 June 2005 22 123,998 n/a n/a Totals 119 $13,515,756 53 $5,883,212 (') Greystone Homes purchased 24 home sites in Sarasota in June, 2004. US Home Takedown Schedule Cottages (67 Units) and Chatham (78 Units) Date of Takedown June2000) September 2004 December 2004 March 2005 Totals Cottages No. of Price per No. of Home sites Home site Home sites 27 $123,185 24 27 123,185 24 13 123,185 15 n/a n/a 15 67 $8,253,395 78 Chatham Price per Home site $148,564 148,564 148,564 148.564 $11,587,992 P1 US Home has extended the first takedown of the Cottages and Chatham home sites and expects to purchase these home sites in , 2004. The failure of any one Lennar Optionees to purchase the Optioned Property on the scheduled closing date (as such date may be extended) is cause for termination of all of the Option Agreements. Until the Optioned Property and the First Refusal Property is purchased, each Lennar Optionees is required to pay LEN-Inland, LLC a monthly fee equal to (i) LIBOR plus 8% divided by 365, multiplied by (ii) the number of days in the month and the aggregate of the purchase prices of all of the Optioned Property and First Refusal Property of such Lennar Optionees. In addition, each Lennar Optionees is required to post a letter of credit to secure the purchase of the property, which LEN-Inland, LLC may draw upon (i) the failure to the Lennar Optionees to exercise its option to purchase the Optioned Property on the scheduled closing dates or (ii) the failure of the Lennar Optionees to exercise their options and purchase their Optioned Property on the scheduled closing dates. The letter of credit shall be reduced as the Optioned Property is acquired. The Lennar Optionees are responsible for paying all taxes, assessments and fees imposed upon the Optioned Property and the First Refusal Property. All of the 426 home sites that LEN-Inland, LLC acquired in the District were unfinished home sites requiring additional improvements before the home sites could be ready for development. Harveston, LLC was obligated to finish the home sites, which it did in the [second] quarter of 2004. 29 Other Oblieations of Harveston. LLC. The property in the District is subject to the Harveston Specific Plan (the "Harveston Specific Plan") adopted by the City Council in August, 2001. The Temecula Valley Unified School District (the "School District") completed an elementary school which is serving students in the District as of September, 2001. The school is not within the District. Certain public improvements will be acquired by the Authority for the City with Bond proceeds. Pursuant to an Agreement and Covenants Running With the Land, dated July 1, 1998, as amended by the First Amendment to Agreement and Covenants Running With the Land, dated June 29, 2001 and recorded June 29, 2001 as Document No. 2001-300715 (the "Agreement and Covenants") between Lennar Homes and Winchester, Lennar Homes agreed to undertake certain obligations with respect to the property in Community Facilities District No. 01-2 (Harveston) (including the Winchester Property), including (i) payment of all taxes and assessments on the Winchester Property to July 30, 2006, except with respect to portions of the Winchester Property that are leased or sold to third parties or that have vertical construction thereon (subject to termination upon the occurrence of certain events), (ii) applying for and diligently process applications for specific plan approval (Harveston Specific Plan approved in August, 2001) and tentative subdivision map approvals (tentative subdivision maps approved August, 2001) for the Harveston, LLC Property and the Winchester Property, and if Harveston, LLC negotiates a development agreement with the City, such agreement shall cover the Winchester Property (Development Agreement recorded January 16, 2002), (iii) Harveston, LLC will grade and construct certain main streets within the District, including all utilities therein as required by governmental agencies, and all landscaping required in connection with the construction of such streets, and (iv) Harveston, LLC will mass grade the Winchester Property, including any necessary storm drain improvements through the Winchester Property (mass grading of the Winchester Property was completed in November 2003). Lennar Corporation, ultimately the parent company of Lennar Homes, the Administrative Member of Harveston, LLC, has irrevocably and unconditionally guaranteed the timely payment and performance by Harveston, LLC to Winchester of Harveston, LLC's obligations under the Agreement and Covenants. The Winchester Property is not within the District, and is within Community Facilities District No. 01-2 (Harveston). The Agreement and Covenants was assigned by Lennar Homes to Harveston, LLC. The Development Plan General. On July 1, 1998, Lennar Homes and Winchester entered into the Agreement and Covenants, as amended June 29, 2001, which set forth the rights and obligations of such parties with respect to the development of the property in Community Facilities District No. 01-2 (Harveston), and which therefore encompasses the District as well. As described above, pursuant to the Agreement and Covenants, Harveston, LLC has undertaken the initial development responsibilities with respect to the Harveston, LLC Property and the Winchester Property. The development work contemplated by the Agreement and Covenants commenced in February, 2002 and will be substantially completed in early 2005. It is anticipated that Harveston, LLC and Winchester will continue to develop the Harveston, LLC Property and the Winchester Property, respectively, in accordance with applicable development plans of each entity. Harveston, LLC Property. Approximately 212.1 acres are within the District and currently planned for development with residential uses. In the community, but not within the District, there is an approximately 12-acre school site which opened in September, 2001 (the "School Property"), there are approximately 35 acres of parks and open space (the "Park/Open Space Property"), and there are approximately 65 acres for road and other miscellaneous uses (the "Infrastructure Property"). Harveston, LLC's plan of development for each of the planned uses for the Harveston, LLC Property is described below. In accordance with the Harveston Specific Plan, Harveston, LLC would be allowed to construct up to housing units within the District. The current plan of development within the District, however, contemplates approximately 1,261 housing units, assuming Harveston, LLC is able to acquire a small area of property affecting 4 of the proposed 1,261 home sites. Harveston, LLC anticipates that the development of the property in the District will proceed in three phases over a period which will continue through June, 2007. Phase 2 is expected to include approximately 519 single family detached home sites and 162 single family attached home sites similar in size to the first phase and selling within seven separate neighborhoods. Phase 2 commenced sales to Merchant Builders in the fourth quarter of 2003. Phase 2B is expected to include approximately 198 single family homes ranging 30 in size from 1,800 square feet to 2,800 square feet, and selling within two separate neighborhoods. Phase 3 is expected to commence lot sales to Merchant Builders in late 2005. Phase 3 is expected to include approximately 318 single family detached homes and 64 single family attached homes ranging in size from 2,600 square feet to 3,300 square feet, and selling within three separate neighborhoods. It is anticipated that a substantial portion of the single family homes will be constructed by the Lennar Optionees, with the balance of the lots to be sold to third party Merchant Builders. The following table sets forth the product mix currently expected to be constructed within the District by price range: Table 3 Community Facilities District No. 03-06 (Harveston II) Product Mix by Price Ranges $300,000- $400,000- Phases Apartments <$300,000 $400,000 $500,000 Total 2 — 162 348 171 681 2B — 198 198 3 = _ 141 241 382 Total 0 162 819 640 1,261 Note: Phase 1 is not part of this financing. Actual number of units may vary. A small area of property affecting 4 of the 1,261 proposed home sites may annex into the District. The annexation has not yet occurred and Harveston, LLC can not predict, when or if the annexation will occur. Source: Harveston, LLC. The phasing plan contemplates the completion of adequate infrastructure and other required physical improvements to service the property within the District concurrently with the construction of each phase. See "—Infrastructure Property" below. School Property. The School District opened the Isabel Barnett Elementary School in September, 2001. Approximately _[600] students attend the school. This property is outside of the District. ParklOpen Space Property. Harveston, LLC reports that it allocated and developed acreage for park purposes within the District consistent with City requirements, and that the open space areas were left in their natural state or improved in accordance with the requirements of the applicable governmental agency. Harveston, LLC completed improvements relating to the 16.5-acre lake park [which is located outside ofthe District] in November, 2003. Infrastructure Property. Harveston, LLC reports that it constructed all backbone infrastructure, including grading, storm drain, sewer, water, streets, utilities and landscaping within the major thoroughfares of Margarita Road, Date Street and Ynez Road in the District. [In addition, when the interior circulation plan for the District is determined, Harveston, LLC will be responsible for developing and constructing the infrastructure necessary to develop the Harveston, LLC Property consistent with such plan.] 31 Development Budgets. In February, 2002, Lennar Homes commenced grading and infrastructure improvements necessary to deliver Phase 1, consisting of 360 single family detached home sites, a 300-unit apartment home superpad and the village/retail site located in the center of the development just west of the school site, as well as the community lake, lake park and the lake house for the planned grand opening. At the time of the grand opening in July, 2003, the aforementioned community amenities as well as model complexes for four neighborhoods were opened in Phase 1. The following table sets forth Harveston, LLC's budget for the approximately $94 million of estimated costs for developing the Harveston, LLC Property in the District, as of June 1, 2004 (exclusive of land acquisition costs). Table 4 is a projection only with respect to the residential portion encompassed by the District and no assurance can be given that these results will be achieved. Actual cash flow will depend on future events such as the rate of land sales and actual costs of infrastructure development. Table 4 Community Facilities District No. 03-06 Pro Forma Residential Development Costs(l) (Estimated as of June 1, 2004) BACKBONE AND IN -TRACT IMPROVEMENTS COSTS TO DATE INCLUDING DESCRIPTION PHASE 2, 2B, 3 PHASE 2 PHASE 2B PHASE 3 TOTAL DEVELOPMENT COSTS ($000s) PLANNING Planning $69,275 $54,198 $15,758 $30,402 $100,358 Printing/Delivery 422,635 360,819 104,907 202,397 668,123 Civil Engineering 4,093,458 3,119,782 907,073 1,750,010 5,776,865 .Soils Engineering 850,357 743,109 216,058 416:839 1,376,006 Traffic Engineering 263 3,687 1,072 2,068 6,827 Utility Consultant 182,121 143,507 41,725 80,499 265,730 Landscape Architect 923,108 657,289 191,106 368,700 1,217,095 Special Consultants 1,399,561 1,004,658 292,103 563,553 1,860,314 Fees/Bonds/Permits 1,739,461 1,332,097 387,306 747,226 2,466,628 Impact Fees 171,123 160,115 46,553 89,815 296,483 Total Planning $9,851,362 $7,579,260 $2,203,661 $4,251,508 $14,034,429 DIRECT DEVELOPMENT Grading $8,227,135 $4,880,112 $1,418,887 $2,737,449 $9,036,448 Maint Special Construction 39,390 87,481 25,435 49,072 161,988 Erosion Control 426,886 356,086 103,532 199,743 659,361 Sewer System 1,503,268 1,145,335 333,005 642,464 2,120,803 Water System 2,032,755 1,787,811 519,804 1,002,854 3,310,470 Storm Drain 1,877,480 1,459,937 424,475 818,937 2,703,350 Street Improvements 3,419,699 7,089,252 2,061,192 3,976,643 13,127,087 Dry Utilities 1,139,786 1,083,781 315,108 607,936 2,006,825 Perimeter Walls 547,263 661,284 192,267 370,940 1,224,491 Special Amenities 4,149,358 3,057,708 889,025 1,715,190 5,661,923 Entry Features - 20,561 5,978 11,534 39,073 Landscaping 1,944,964 2,220,614 645,641 1,245,631 4,111,887 Parks 1,855,904 2,989,964 869,300 1,677,134 5,536,297 Reimbursables (467,386) (4,091,530) (1,189,608) (2,295,102) (7,576,240) Contingency 1,185,470 344,674 664,977 2,195,122 Subtotal $26,695,500 $23,933,767 $6,958,716 $13,425,402 $44,317,886 Total $36,546,862 $31,513,026 $9,162,378 $17,676,911 $58,352,315 Ol Pro forma residential development costs only. Does not include development of commercial or retail parcels. Does not include land acquisition costs Note: Totals may not add due to rounding. Source: Ha"eston, LLC. 32 The discussion and budgets set forth above merely reflect Harveston, LLC's present plan for the development of the Harveston, LLC Property within the District (and include certain costs relating to the Winchester Property pursuant to the Agreement and Covenants). There can be no assurance that Harveston, LLC will have the resources, willingness or ability to successfully implement the development plan as described above. Description of Merchant Builder Projects. Pursuant to the Option Agreements, US Home will take title to 145 home sites known as the Lake Front Cottages and Chatham tracts, assuming no defaults by the Lennar Optionees under the Option Agreements. As of June 1, 2004, US Home had 34 homes in the early stage of construction in the Lake Front Cottages project and 3 models and 18 production homes in the early stage of construction in the Chatham project. The model homes are estimated to be completed during the third quarter of 2004. The project opened for sales from trailers in May, 2004. Greystone Homes has acquired 28 of the 162 home sites it is developing in the District. The home sites are being developed as Ashville (53 home sites) and Sausalito (109 home sites). As of June 1, 2004, the Ashville project, which will be a cluster -type or alley loaded product was in a mass graded superpad condition. As of June 1, 2004, Greystone Homes had 3 models and 13 production homes in the early stage of construction in the Sausalito project. The model homes are estimated to be completed during the third quarter of 2004. The project opened for sales from trailers in May, 2004. Lennar Homes is developing 119 home sites in the District. The home sites are being developed as Auburn Lane. As of June 1, 2004, Lennar Homes had 3 models under construction and 27 production homes in the early stage of construction. The model homes are estimated to be completed during the third quarter of 2004. The project opened for sales from trailers in May, 2004. The development which constitutes the Merchant Builders' projects, together with the estimated lot sizes, unit sizes and base sales price ranges, are set forth below. Minimum Estimated Lot Size Unit Size Estimated Base Project Name (Square Feet) (Square Feet) Sales Price Range Total Units US Home Lake Front Cottages 3,000 1,991 - 2,259 $377,500 - $544,445 67 Chatham 5,850 2,521 — 3,594 $470,000 — $535,000 78 Greystone Homes Ashville 2,800 1,672 - 2,129 $380,000 - $425,000 53 Sausalito* 4,250 1,873 - 2,537 $390,000 - $450,000 109 Lennar Homes Auburn Lane 3,100 1,767 - 2,1O1 high $300,000 119 Total Merchant Builder 426 Home Sites .81 lots owned by LEN-Inland, LLC and 28 lots owned by Greystone Homes. The balance of the 426 lots are owned by LEN-INland, LLC. Status of Permits and Approvals. A final map encompassing all but the Phase 3 home sites was recorded in April, 2004. Pursuant to internal arrangements among Harveston, LLC and the Lennar Optionees, Harveston, LLC is obligated to deliver finished home sites to the Lennar Optionees. All of the on -site improvements are substantially complete with the exception of Phase 3 sewer, water, storm drain, streets and landscaping. The major off -site work to complete generally relates to the facilities being financed through this District. In order to complete its development plan, the Lennar 33 Optionees must construct the production homes and each Lennar Optionee must complete interior streets and utilities. As of June 1, 2004, Harveston, LLC has estimated the costs to develop the 1,261 proposed home sites in the District to the stage of finished home sites ready to build homes with the foregoing backbone infrastructure to be $ [$58,352,315] including estimated facilities financed with proceeds of the 2004 Bonds. Pursuant to [purchase and sale] agreements with William Lyon Homes, Inc. and PLC Harveston, LLC, [Harveston, LLC] is obligated to deliver finished lots to William Lyon Homes, Inc. and PLC Harveston, LLC (i.e., complete grading and streets and utilities. Each Lennar Optionee, William Lyon Homes, Inc. and PLC Harveston, LLC is responsible for internal streets, sewer, water, storm drainage, sidewalks and landscape improvements for the detached single family housing home sites being developed by such entity. As of June 1, 2004, Harveston, LLC and the Lennar Optionees have expended in the aggregate approximately [$55,700,000] [$36,546,862] in development, infrastructure and financing costs relating to development of the property within the District, exclusive of land acquisition costs, debt service and general and administrative costs. Harveston, LLC estimates that total development and infrastructure costs, including land acquisition costs and in -tract improvements for the Lennar Optionees will aggregate approximately [$88,800,000][$58,352,315]. Due to pre-existing agreements, including the Development Agreement, the property within the District is subject to the Transportation Uniform Mitigation Fee. Harveston, LLC has entered into an agreement with the [Rancho California Water District] relating to the provision of water service by Rancho California Water District to the property within the District. Plan of Finance. [ has a project loan on the property [within the [master planned community] [District] from Residential Funding Corporation, a Delaware corporation. The loan was originally for $48,000,000 but the commitment was reduced to $30,000,000. The current outstanding balance is approximately $22,500,000. The loan matures on August 7, 2006. All future development costs will be financed through a combination of debt and Harveston, LLC equity.] Absorption. US Home has a projected absorption rate of approximately 18 units per quarter, commencing the third quarter of 2004 and concluding the second quarter of 2005. Greystone Homes has a projected absorption rate of approximately 18 units per quarter, commencing the fourth quarter of 2004 and concluding the first quarter of 2006 for the Ashville project, 18 units per quarter commencing May, 2004 and concluding the third quarter of 2005 for the Sausalito project. Lennar Homes has a projected absorption rate of approximately 18 units per quarter, commencing the fourth quarter of 2003 and concluding the first quarter of 2005 for the Auburn Lane project. The foregoing absorption estimates were provided by the Merchant Builders. The Market Absorption Study contains projected absorption at build out of production homes which varies from the absorption estimated by the Merchant Builders. See "PROPERTY OWNERSHIP — Market Absorption Study" and APPENDIX D — "Market Absorption Study." History of Property Tax Payment; Loan Defaults; Bankruptcy. The officer executing a certificate on behalf of Harveston, LLC certifies that, to his actual knowledge: • neither Harveston, LLC nor to Harveston, LLC's actual knowledge of any of its current Affiliates (as defined in the Harveston, LLC Continuing Disclosure Agreement attached hereto as 34 Appendix G), has ever been delinquent in the payment of any ad valorem property taxes, special assessments or special taxes in any material amount, • neither Harveston, LLC nor any of its Affiliates is currently in material default on any loans, lines of credit or other obligation related to its development in the District or any of its other projects which default would in any way materially and adversely affect its ability to develop its property in the District as described in the Official Statement or to pay the Special Taxes for which it is responsible, • Harveston, LLC and its Affiliates are solvent and neither Harveston, LLC nor any of its current Affiliates has ever filed bankruptcy or been declared bankrupt, or has any proceeding pending or to its actual knowledge threatened in which Harveston, LLC or its Affiliates may be adjudicated as bankrupt, or discharged from any or all of its debts or obligations, and • no action, suit, proceedings, inquiry or investigations at law or in equity, before or by any court, regulatory agency, public board or body, is pending (with service of process to Harveston, LLC or an Affiliate having been accomplished) against Harveston, LLC or any Affiliate or, to Harveston, LLC's actual knowledge, threatened, which if successful, would materially adversely affect the ability of Harveston, LLC to complete the development and sale of the property currently owned within the District or to pay special taxes or ad valorem tax obligations when due on its property within the District. William Lyon Homes, Inc. William Lyon Homes, Inc., a California corporation, based in Newport Beach, California ("William Lyon Homes, Inc."), has acquired lots for 162 attached residential units. William Lyon Homes, Inc. is a New York Stock Exchange listed corporation traded under the ticker symbol "WLS." William Lyon Homes, Inc. is a leading national homebuilder. Established in 1956, William Lyon Homes, Inc. builds homes in five geographic markets in three states and is one of the largest single- family on -site homebuilders in the United States. William Lyon Homes, Inc.'s homebuilding segment specializes in the sale and construction of single-family attached and detached housing. In California, William Lyon Homes, Inc. markets its products under several brand names. William Lyon Homes, Inc.'s Internet home page is located at lyonhomes.com. This Internet address is included for reference only and the information on such Internet site is not apart ofthis Official Statement or incorporated by reference into this Official Statement. No representation is made in this Official Statement as to the accuracy or adequacy of the information contained on any Internet site. Development Experience. William Lyon Homes,Inc. and its Affiliates delivered approximately2,618 homes in 1999, approximately 2,666 homes in 2000, approximately 2,566 homes in 2001, approximately 2,522 homes in 2002, approximately 2,6001 homes in 2003 and anticipate closing approximately homes in 2004. Recent projects under development by William Lyon Homes, Inc., or its Affiliates in Southern California, include the following: No. of Proposed Base Square Feet Time Period of Site Name Location Units Prices (Sq. Ft.) Development Description of Project. William Lyon Homes, Inc. acquired lots for 162 units in November, 2003. The development which constitutes William Lyon Homes, Inc.'s project, togetherwith the estimated lot sizes, unit sizes and base sales price range, is set forth below. 35 Name Minimum Estimated Unit Lot Size Size Estimated Base (Square Feet) (Square Feet) Sales Price Range Total Units Savannah 2,000 1,400-2,000 $300,000 162 Status of Permits and Approvals. The lots for the 162 units are encompassed within a tentative tract recorded on , 200[41. The final map is in process and expected to be recorded in the third quarter of 2004. William Lyon Homes, Inc. is responsible for final grading and constructing in -tract street, water, sewer and dry utility improvements for the attached single housing. In -tract final grading and sewer for the lots should commence construction in the fourth quarter of 2004. In -tract water, streets, curbs and gutters are expected to commence construction in the fourth quarter of 2004. William Lyon Homes, Inc.'s remaining costs relate primarily to in -tract improvement costs (including impact fees) and are estimated to be $3,200,000, plus model and production home construction costs. William Lyon Homes, Inc. estimates it will begin model construction in the fourth quarter of 2004. Home sales are expected to commence in the first quarter of 2005. Plan of Finance. William Lyon Homes, Inc. is financing development of the property from internal sources. As of June 1, 2004, William Lyon Homes, Inc. has expended funds for acquisition of the property, but has only expended modest amounts in connection with the development of the project. Additional amounts will be expended after the final map is recorded. If and to the extent that internal financing and land sales revenues are inadequate to pay the costs to complete the planned development of William Lyon Homes, Inc.'s expected development within property it acquires, portions of the project may not be developable. While William Lyon Homes, Inc. has made such internal financing available in the past, there can be no assurance whatsoever of its willingness or ability to do so in the future; and it has no legal obligation of any kind to Bondowners to make any such contributions or to obtain loans. Other than pointing out the willingness of William Lyon Homes, Inc. to provide internal financing in the past, William Lyon Homes, Inc. has not represented in any way that it will do so in the future. Absorption. William Lyon Homes, Inc.'s development has a projected absorption rate of 18 units per quarter, commencing the first quarter of 2005. History of Property Tax Payment; Loan Defaults; Bankruptcy. The officer executing a certificate on behalf of William Lyon Homes, Inc. certifies that, to his actual knowledge: • William Lyon Homes, Inc. has numerous Affiliates (as defined in the Harveston, LLC Continuing Disclosure Agreement consisting of various entities that are developing or have been involved in the development of numerous projects over an extended period of time. It is likely that William Lyon Homes, Inc., and any of such Affiliates have been delinquent at one time or another in the payment of ad valorem property taxes, special assessments or special taxes. William Lyon Homes, Inc. does not have actual knowledge that it or any such Affiliate is currently delinquent in any material amount in the payment of ad valorem property taxes, special assessments or special taxes. • Neither William Lyon Homes, Inc. nor any of its Affiliates is currently in default on any loans, lines of credit or other obligation related to its development in the District or any of its other projects which default would in any way materially and adversely affect its ability to develop its development in the District as described in the Official Statement or to pay the District Special Taxes for which it is responsible. • William Lyon Homes, Inc. and its Affiliates are solvent and neither William Lyon Homes, Inc. nor any of its current Affiliates has ever filed bankruptcy or been declared bankrupt, or has any proceeding pending or to William Lyon Homes, Inc. actual knowledge threatened in which it may be adjudicated as bankrupt, or discharged from any or all of its debts or obligations. • No action, suit, proceedings, inquiry or investigations at law or in equity, before or by any court, regulatory agency, public board or body, is pending (with service of process to William Lyon Homes, 36 Inc. or an Affiliate having been accomplished) against William Lyon Homes, Inc. or any Affiliate or, to William Lyon Homes, Inc.'s actual knowledge, threatened, which if successful, would materially adversely affect the ability of William Lyon Homes, Inc. to complete the acquisition and development of the property expected to be owned within the District to pay Special Taxes, assessments or ad valorem tax obligations when due on its property within the District. PLC Harveston, LLC; Christopher Homes, Inc. PLC Harveston, LLC, aDelaware limited liability company acquired93lots inNovember, 2003 from Harveston, LLC. Christopher Homes, Inc., a Delaware corporation, based in Newport Beach, California ("Christopher Homes, Inc."), acts as managing member of PLC Harveston, LLC. Development Experience. Christopher Homes, Inc. is a leading local home builder. Established in 1994, Christopher Homes, Inc. builds homes in 2 geographic markets in California. Christopher Homes, Inc., and its Affiliates, delivered 139 homes in 1999, 336 homes in 2000, 102 homes in 2001, 169 homes in 2002, 245 homes in 2003 and anticipate closing approximately 160 homes in 2004. Recent projects under development by Christopher Homes, Inc., or its Affiliates in Southern California, include the following: No. of Proposed Base Square Feet Time Period of Site Name Location Units Prices (Sq. Ft.) Development Waterfront Huntington 778 $1,150,000-1,300,000 2960-3384 6/03-4/05 Beach Bel Air Huntington 102 789,000-860,000 2484 - 2636 12/03 - 9/05 Beach Mountain View Corona 100 450,000-585,000 2661-4185 12/03- 10105 Description ofProject. The development which constitutes PLC Harveston, LLC's project, together with the estimated lot sizes, unit sizes and base sales price range, is set forth below. Name Walden Minimum Estimated Unit Lot Size Size Estimated Base (Square Feet) (Square Feet) Sales Price Range Total Units 4,950 2,770 —3,393 $435,000-$475,000 93 Status of Permits and Approvals. The lots for the 93 units are encompassed within a final map recorded April 28, 2004. Pursuant to the purchase agreement between Harveston, LLC and LLC Harveston, LLC was obligated to deliver [finished lots] to PLC Harveston, LLC. As described above, under "— Status of Permits and Approvals," Harveston, LLC constructed all backbone public improvements and rough grading the lots. PLC Harveston, LLC will be responsible for final grading and constructing in - tract street, water, sewer and dry utility improvements for the detached single housing. In -tract final grading and sewer for the lots commenced construction in the 2nd quarter of 2004. In -tract water, streets, curbs and gutters are estimated to commence construction in the 2nd quarter of 2004. PLC Harveston, LLC's remaining costs relate primarily to in -tract improvement costs aggregating approximately $1,350,000 (including impact fees), plus model and production home construction costs. Plan of Finance. PLC Harveston, LLC is financing development of the property from a bank construction loan from and internal sources. As of June 30, 2004, approximately $15.5 million had been expended in connection with the acquisition and development of the project. If and to the extent that construction loans, internal financing and land sales revenues are inadequate to pay the costs to complete the planned development of PLC Harveston, LLC's expected development within property it acquires, portions ofthe project may not be developable. While Christopher Homes, Inc. has made such internal financing available in the past, there can be no assurance whatsoever of its willingness or ability 37 to do so in the future; and it has no legal obligation of any kind to Bondowners to make any such contributions or to obtain loans. Other than pointing out the willingness of PLC Harveston, LLC to provide internal financing in the past, PLC Harveston, LLC has not represented in any way that it will do so in the future. Absorption. PLC Harveston, LLC's development has a projected absorption rate of 20 units per quarter, commencing the 3rd quarter of 2004 (closings to being the 4' quarter of 2004). History of Property Tax Payment; Loan Defaults; Bankruptcy. The officer executing a certificate on behalf of PLC Harveston, LLC certifies that, to his actual knowledge: • PLC Harveston, LLC does not have actual knowledge that it or any such Affiliate is has been delinquent in any material amount in the payment of ad valorem property taxes, special assessments or special taxes. • Neither PLC Harveston, LLC nor any of its Affiliates is currently in default on any loans, lines of credit or other obligation related to its development in the District or any of its other projects which default would in any way materially and adversely affect its ability to develop its development in the District as described in the Official Statement or to pay the District Special Taxes for which it is responsible. • PLC Harveston, LLC and its Affiliates are solvent and neither PLC Harveston, LLC nor any of its current Affiliates has ever filed bankruptcy or been declared bankrupt, or has any proceeding pending or to PLC Harveston, LLC's actual knowledge threatened in which it may be adjudicated as bankrupt, or discharged from any or all of its debts or obligations. • No action, suit, proceedings, inquiry or investigations at law or in equity, before or by any court, regulatory agency, public board or body, is pending (with service of process to PLC Harveston, LLC or an Affiliate having been accomplished) against PLC Harveston, LLC or any Affiliate or, to PLC Harveston, LLC's actual knowledge, threatened, which if successful, would materially adversely affect the ability of PLC Harveston, LLC or Christopher Homes, Inc. to complete the acquisition and development of the property expected to be owned within the District to pay Special Taxes, assessments or ad valorem tax obligations when due on its property within the District. Direct and Overlapping Debt Table 5 below sets forth the existing authorized indebtedness payable from taxes and assessments that may be levied within the District prepared by Albert A. Webb Associates and dated as of July 1, 2004 (the "Debt Report"). The Debt Report is included for general information purposes only. In certain cases, the percentages of debt calculations are based on assessed values, which will change significantly as sales occur and assessed values increase to reflect housing values. The District believes the information is current as of its date, but makes no representation as to its completeness or accuracy. Other public agencies, such as the City, may issue additional indebtedness at any time, without the consent or approval of the District or the Authority. See "— Overlapping Community Facilities and Assessment Districts" below. The Debt Report generally includes long term obligations sold in the public credit markets by public agencies whose boundaries overlap the boundaries of the District in whole or in part. Such long term obligations generally are not payable from property taxes, assessment or special taxes on land in the District. In many cases long term obligations issued by a public agency are payable only from the general fund or other revenues of such public agency. Additional indebtedness could be authorized by the District, the City or other public agencies at any time. The District has not undertaken to commission annual appraisals of the market value of property in the District for purposes of its Annual Reports pursuant to the Continuing Disclosure Agreement, and information regarding property values for purposes of a direct and overlapping debt analysis which may be contained in such reports will be based on assessed values as determined by the County Assessor. See APPENDIX F hereto for the form of the Continuing Disclosure Agreement. 38 Table 5 Temecula Public Finance Authority Community Facilities District No. 03-06 Secured Property Tax Roll and Direct and Overlapping Debt 1. Assessed Value Fiscal Year 2003-2004 Secured Roll Assessed Valuation $32,017,645 11. Secured Property Tax Roll as of Fiscal Year 2003-04 R ri1DE on fTaz BilY Total Parcels Tot v$325,505 /�4% Parcels In_CF£ L Amount AD 161 SERIESA A _ RIVERSIDE COUNTY AD 161 SERIES B AD 3,142 S1,622,085 0.129% 2 $2,090 RIVERSIDE COUNTY AD 161 SERIES C AD 3,028 S352,738 0.199a/o 2 $702 TEMECULA CFD 01-02 HARVESTON SPECIAL TAX A CFD 332 $589,183 55.668% 11 $396,903 GENERAL PURPOSE 1% 737,289 $1,099,922,347 0.029% 13 $320,176 TEMECULA UNIFIED SCHOOL DISTRICT GO 35,048 $5,794,750 0.369% 13 $21,356 METROPOLITAN WTR DEBT SV GO 396,208 $4,395,837 0.044% 13 SL953 EMWD DIST U-8 GO 68,793 $1,770,799 0.217% 13 $3,842 RCWD R DIV DEBT SERVICE GO 30,260 $7,280,745 1.319% 13 $96,053 FLOOD CONTROL NPDES SPL 50,055 $355,393 0002% 2 $7 TEMECULA CSD SVS PARKS CSD 23,071 $2,741 059 1.842% 13 $50,499 TEMECULA CFD 01-02 HARVESTON SPECIAL TAX BONDS CFD 325 S206,276 73.713% 11 $152,053 RANCHO CA WATER FIRE SERVICE SPL 1,404 $148,623 2.6811 4 $3WS MWD STANDBY EAST WYE 186,424 $2,690,053 0,067% 13 $1,803 EWMD STANDBY -COMBINED CHARGE WTR 188,288 S4,158,786 0.045% 13 $1,853 Fiscal Year 1003-2004 TOTAL PROPERTY TAXLIAB[LI7 Y ar $1,043,525 TOTAL PROPERTY TAX AS A PERCENTAGE OF FISCAL YEAR 2003-2004 ASSESSED VALUATION 3.26% III. Land Secured Bond Indebeednrss Outstanding Direct and Overlapping Bonded D. Type Issued Outstanding %Applicable Parcels In CFD Amount of Debt AD 161 SERIES AD $3,971,000 $2,401,225 0.074% 2 A $1,617 AD 161 SERIES B AD $19,596,000 $11,436,709 0.129% 2 $13,984 AD 161 SERIES C AD $4,638.000 $2,969,483 0.199% 2 $5,609 SPECIAL TAX A"'CFD TEMECULA CFD 01-02 HARVESTON$11,3 $17,310,000 S17,310,000 65.668% 11 087 TOTAL LAND SECURED BONDED DFBTr'dta $I1,398,88,296296 Authorizedand Parcels Amount BDirect ClytaIFA�pC'L�i�r'd-"7'�IonDTbT?+ARVES US / ��p I InC fT A 1� ip,cable ION SPECIAL TAXA SI9,0iunced �T0,666 O,Od 6566g% �1,669944 TOTAL UNISSUED [AND SECURED BONDED DEBI0' SS1,64 TOTAL OUTSTANDING AND UNISSUED LAND SECURED BONDED INDEBTEDNESS $13,029,990 IV. General Obligation Bond Indebtedness Outstanding Direct and Parcels Amount Oy.,IOpping Bonded Debt Twe Issued Outstanding %Applicable In CFD of Debt TEMECULA UNIFIED B & I GO $65,000,000 $50,640,000 0.369% 13 $186.627 RCWD R DIV DEBT SERVICE GO S44,360,000 $8,235,726 1.319% 13 $108,652 EMWD DIST U-8 GO $35,430,000 $4,835,000 0.533% 13 $25,794 METROPOLITAN WTR DEBT SV GO $950,000,000 $475,265,000 0002% 13 $11,193 TOTAL GENERAL OBLIGATION BONDED DEBT"' $332,266 Authorized Direct and Parcels Amount Overlapping Bonded Debt Twe Authorized Unissued %Applicable In CFD Applicable RCWD R DIV DEBT SERVICE GO $55,000,000 $10,640,000 1.319% 13 $140,371 TEMECULA UNIFIED 8 & I GO $65,000,000 $- 0.369% 13 so EMWD DIST U-8 Go $40,530,000 $5,100,000 0,533% 13 $27,209 METROPOLITAN WTR DEBT SV GO $850,000,000 S- 0.000% 13 so TOTAL UN/SSIIb'D GENERAL OBL[GATION BONDS" $140,371 TOTAL OUTSTANDING AND UNISSUED GENERAL OBLIGATION BONDED INDEBTEDNESS $472,637 of Although the proceedings for formation of Community Fact District No 01-2 (Harveston)au�hori�d E25,0o0,000 of Bonds, Commwiy Facilities Distrid No.01-2(Hwvesmn)epproveda resolution reducing the authorized amount of Bonds to E19,810,000 provided the pnnapal amount of rePonding bonds may exceed E19,81o,t%q. (21 Addinonal bonded debt or available bond amhommho t may east but is not shown be. a his wu not leased for the referenced fiscal year. AD 161 lien relates to only a portion ofthe District. The AD 161 Jim relating to the balance of the pmpetry was prepaid with proceeds of Community Facihnes District No. 0 1 -2 (Ilnrves art) variable one bonds issued in 2002.. Source: Albert A. Webb Associates. 39 Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership The values, direct and overlapping debt and total tax burden on individual parcels varies among parcels within the District. The value of individual parcels is significant because in the event of delinquency in the payment of Special Taxes, the District may foreclose only against delinquent parcels. As of June 1, 2004, the parcels in the District have an appraised value -to -lien ratio of approximately 9.97:1" calculated with respect to the Series 2004 Bonds and including $11,388,296 as the District's approximate share of the$17,310,000 ofspecial tax bonds issued by Community Facilities District No. 01-2 (Harveston) and the assessment bonds issued by the County with respect to Assessment District No. 161. Community Facilities District No. 01-2 (Harveston)'s bonds are variable rate bonds and will convert to a fixed rate at which time the interest rate will increase and the principal amount outstanding will increase due to funding of a reserve fund and payment of costs of issuance. As of June 1, 2004, Harveston, LLC, LEN-Inland, LLC and the Merchant Builders own all proposed Taxable Property in the District that is responsible for all of the Special Taxes. Pursuant to the Option Agreements, Lennar Optionees are responsible during the term of the Option Agreements for the payment of ad valorem and special taxes on the property subject to the Option Agreements. To date, Lennar Homes, as predecessor to Harveston, LLC, and Harveston, LLC have been current in the payment of the County ad valorem property taxes and the special taxes of the Winchester Hills Community Facilities District. Tables 6 and 7 show the amount of the Special Tax for which the Taxable Property within the District would be responsible and the percentage of the estimated total amount of the Special Tax for Fiscal Year 2005-06, if Special Taxes were levied based on exercise of the options with LEN-Inland, LLC and current ownership. Actual amounts levied in the District will differ based on sales to home buyers. Table 6 presents the amounts based on the Undeveloped Property allocation. Table 7 presents the amounts based on projected build -out of the home sites. Only some of the Merchant Builders referenced are currently landowners within the District. There can be no assurance that Merchant Builders who have not closed escrow on their lots within the District will do so at the times indicated or at all. The Special Tax has been estimated assuming a bond sale of $4,700,000 and the levy of Special Taxes in Fiscal Year 2005-06. The amounts presented do not include the Special Tax B of Community Facilities District No. 01-2 (Harveston) which cannot exceed $ in Fiscal Year 2004-05, increasing by 1% each Fiscal Year thereafter. Interest is capitalized through September 1, 2005. The first year of Special Tax levy will be Fiscal Year 2005-06. Values shown are estimates of what the Special Tax allocation for Fiscal Year 2005-06 would be if the Merchant Builders owned their respective home sites. The Special Tax in Fiscal Year 2005-06 will be calculated pursuant to the Rate and Method based on the parcel configuration at such time as needed to levy the Special Tax Requirement. ** Preliminary, subject to change 40 5 88. 8 a lJ q rJ y 3 = °S y_ a E U C - � o - s o -m x c 3 c eMLEW 4 s o 8 Eoa a 0 500 66 a 9 4v v�a. 9W_ Na�og05 9E 5h; �._.�>>O � �0M68 mmwE y �wvRo' o .o_ i�o'°'o'ay ov H ouh-2"� F v fa> <1 9n m il$; A 8 x 8 0 8 a � m S J � � J mq N Overlapping Community Facilities and Assessment Districts Community Facilities District No. 01-2 (Harveston). Community Facilities District No. 01-2 (Harveston) levies a "Special Tax A" which is pledge to Community Facilities District No. 01-2 for bonds it issued in 2002. Such bonds were issued as variable rate bonds in the aggregate principal amount of $17,310,000. The expectation is that the variable rate bonds will be refunded or converted to a fixed rate and that the interest rate on the refunding bonds will increase and the principal amount will increase in order to fund a reserve fund and to pay costs of issuance. Community Facilities District No. 01-2 (Harveston) also is authorized to levy Special Tax B in an amount not to exceed $206,276 for Fiscal Year 2002-2003, increasing by 1% each Fiscal Year thereafter. The Maximum Special Tax B is _ [$685] per Acre for Fiscal Year 2004-05 for "Other Undeveloped Property" and [$] 07] per unit for "Developed Property" as defined in the applicable Community Facilities District No. 01-2 (Harveston) rate and method. The foregoing amounts increase by an amount equal to 1.00% of the maximum tax rates in effect for the prior Fiscal Year. The Special Tax B is secured by a lien on a parity with the lien on property in the District which secures payment of the Special Tax to be used to pay debt service on the Series 2004 Bonds, and so is on a parity with the lien securing payment of the Special Taxes. Additional Debt Payable from Taxes or Assessments. The District has no control over the amount of additional debt payable from taxes or assessments levied on all or a portion of the property within a special district which may be incurred in the future by other governmental agencies, including, but not limited to, the County, the City or any other governmental agency having jurisdiction over all or a portion of the property within the District. Furthermore, nothing prevents the owners of property within the District from consenting to the issuance of additional debt by other governmental agencies which would be secured by taxes or assessments on a parity with the Special Taxes. To the extent such indebtedness is payable from assessments, other special taxes levied pursuant to the Act or taxes, such assessments, special taxes and taxes will be secured by liens on the property within a district on a parity with a lien of the Special Taxes. Accordingly, the debt on the property within the District could increase, without any corresponding increase in the value of the property therein, and thereby severely reduce the ratio that exists at the time the Series 2004 Bonds are issued between the value of the property and the debt secured by the Special Taxes and other taxes and assessments which may be levied on such property. The incurring of such additional indebtedness could also affect the ability and willingness of the property owners within the District to pay the Special Taxes when due. Moreover, in the event of a delinquency in the payment of Special Taxes, no assurance can be given that the proceeds of any foreclosure sale of the property with delinquent Special Taxes would be sufficient to pay the delinquent Special Taxes. See "BONDOWNERS' RISKS." Other Overlapping Direct Assessments Metropolitan Water District Standby. Property within the District is subject to a Metropolitan Water District Standby ("MWD Standby") assessment. The MWD Standby assessment is fixed unless there is a vote to increase the assessment. This pay-as-you-go assessment is used for water conservation programs, emergency programs, water treatment and capital improvements such as transporting water from Colorado and Northern California to Southern California. The assessment levied for Fiscal Year 2003-2004 was $ per equivalent dwelling unit. Estimated Assessed Value -to -Lien Ratios The assessed values, direct and overlapping debt and total tax burden on individual parcels varies among parcels within the District. The value of individual parcels is significant because in the event of a delinquency in the payment of Special Taxes, the District may foreclose only against delinquent parcels. As of June 1, 2004, based on the Fiscal Year 2003-04 assessed value of approximately $32,017,645, the parcels in the District have an assessed value -to -lien ratio of less than 2:1 taking into account outstanding direct and overlapping bonded debt. See Table 5 above. 43 Transportation Uniform Mitigation Fee; Multiple Species Habitat Conservation Plan The County of Riverside and the 14 cities in western Riverside County, including the City, adopted anew transportation fee for development, which adds approximately $6,650 to every new single-family house and approximately $4,600 to each future apartment or condominium unit in the County, subject to credit for a portion, if any, of transportation facility fees imposed by the County or applicable city which relates to facilities encompassed within the new transportation fee. New retail, service and industrial development will also be charged the transportation fee based on the square footage of new development ($8.90 per square foot for retail, $5.08 per square foot for service and $1.65 per square foot for industrial). The fee was approved by the County in February, 2003. The fee was approved by the City on January 28, 2003, effective 61 days thereafter. The fee was implemented by the other cities in the County between February 1, and June 1, 2003. Cities may opt out of the fee, but then they will not be able to receive any money from Measure A, the County's half -cent sales tax initiative. Extension of the term of Measure A was approved by the voters at the November 5, 2002 election. Measure A is estimated to cover more than 50%of the cost of maintaining cities' roads and streets. The half -cent sales tax program is now extended an additional 30 years and will expire in 2039. The Appraisal is based in part on comparable land sales which occurred before implementation of the Transportation Uniform Mitigation Fee. Due to pre-existing agreements, including the Development Agreement, the property within the District is not subject to the Transportation Uniform Mitigation Fee. The County of Riverside adopted, and the cities in western Riverside County may adopt, a new fee for the costs of a Multiple Species Habitat Conservation Plan. However, property within the District does not lie within the Multiple Species Habitat Conservation Plan area and is not directly affected by the habitat conservation plan, except that fees are not payable until this habitat conservation plan is adopted. The fee adopted by the County, and which may be adopted by the cities, would apply to new development. The Ordinance adopted by the County is effective upon the issuance of the appropriate permits authorizing "take" in connection with the Multiple Species Habitat Conservation Plan by the U.S. Fish and Wildlife Service and the California Department of Fish and Game, which effective date has not yet occurred. On June 10, 2004, the U.S. District Court in Washington, DC issued an order requiring the U.S. Fish and Wildlife Service to suspend approval of any take permits that contained a "no surprises" provision. The take permit relating to the Multiple Species Habitat Conservation Plan was modified to conform to the Court order and the take permit was signed on June 22, 2004. The County fee ranges from approximately $1,651 per home to $5,620 an acre for commercial property. The County's fee will apply to lots for which building permits have not yet been issued. The effect of the Multiple Species Subarea Habitat Conservation Plan fee adopted by the County or which may be adopted by any city on land values and sales prices cannot be determined at this time nor can the effect ofthe Court's order and the modifications made to the take permits executed in connection with the Multiple Species Habitat Conservation Plan. Market Absorption Study Empire Economics Inc., the market absorption consultant (the "Market Absorption Consultant"), has prepared a market analysis of the property in the District in its Market Absorption Study, dated May 19, 2004 (the "Market Absorption Study"). Based upon its analysis of the expected demographic -economic trends, the Market Absorption Consultant estimated the District is expected to accommodate the approximately 1,261 residential units at build -out by the end of 2008. The Market Absorption Consultant's estimated absorption rates of the different categories of residential units are as follows: 44 Table 8 Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston 11) Estimated Absorption Schedules May 19, 2004 Product Types and Sius of Ltving Areas Purdue Types A: Aloched B: 13e1ow2,000Nfl: C. 2,000-2,500 a9.ft. D: 2,500-3,000 sq ft. E: Above 3,000 sq.fl Annually Cumul. Ashville Like Pmol Conage $hebome aA. Aubum Lane Sausalito walden welled, Project Names Savanauh 'Vdier" [Gunn Pleee "Ocher' 'Other' Housing Mee - Estimated Lower $262,600 $316,833 $360,500 $450,333 S453,333 Avenge 273,733 335,042 388,613 454,978 470,822 $294,572 Uppea 294,200 349,800 404,333 457,300 4'19,567 Living Area- Estimated Lower 1,528 1,771 2,108 2,830 3.137 Avenge 1,699 1,880 2,260 2,935 3.188 1.833 Upper 2,015 1,931 2.370 2,997 3,290 Value Ratio(Piiou Living $161 $178 $172 $155 $148 $161 Ana) Projcct Phase / N1urket Entry CFO Arm: Phase 2, 2B met 2: 00oba 2004 162 172 176 92 79 681 1-Project 2-P,. 2-Pujucts I -Pmecl J I-Project 54.0°/. June 2005 Nov. 2004 Oa, 20(A Nov. 2004 Nov. 2004 2B: June 2005 0 106 92 0 0 198 1-Pojm[ 1-Pmjeu 15.7% June 2005 June 2005 3: June 2006 64 27 0 118 123 382 1 - 09Jee4 1- pm cq 1 1-P leq 1-P jed 303°. June 200E June 2006 June 20M June 2006 Toole (Excluding Phaw 1) 226 355 268 210 202 1261 Shan 10.9% 28.2% 213% 169% 16.0% 1000% CFB A. Pharr 2, 2B and Abmrytiou: 2004 0 30 30 15 10 85 85 2005 5o I50 135 50 45 430 515 2006 115 112 91 42 49 409 924 2007 61 63 12 55 50 241 1,165 2008 0 0 0 48 48 96 1.261 2009 0 0 0 0 0 0 1,261 Tools 226 355 268 210 202 1 261 45 The Market Absorption Study is subject to a number of assumptions and limiting conditions. See APPENDIX D — "Market Absorption Study" for a discussion of the assumptions and limit conditions of the Market Absorption Study. Appraised Property Value An appraisal prepared by an MAI appraiser of the land and existing improvements for the development within the District dated June 21, 2004 (the "Appraisal"), has been prepared by Stephen G. White, NMI of Fullerton, California (the "Appraiser") in connection with issuance of the Series 2004 Bonds. The purpose of the Appraisal was to estimate the aggregate market value of the "as is" condition of the property in each of the 7 separate tracts in Phase 2, plus the remaining ownership of Harveston, LLC comprising Phases 2B and 3. The Appraisal also reflects the proposed District financing as well as the tax rates of approximately 1.8 to 1.9% to the homeowners, including Special Taxes for the District and for Community Facilities District No. 01-2 (Harveston). The Appraisal is based on certain assumptions. Subject to these assumptions, the Appraiser estimated that the fee simple market value of the Taxable Property within the District (subject to the lien of the Special Taxes) as of June 1, 2004, was as follows: Phase 2 Expected Builder William Lyon Homes, Inc. Greystone Homes (° US Home (') Lennar Homes (') Greystone Homes Christopher Homes US Home Subtotal Phase 2B and 3 Owner Harveston, LLC Total Tract Name Savannah Ashville Lake Front Cottages Auburn Lane Sausalito Walden Chatham No. of Home Sites/Units 162 53 67 119 109 93 78 681 Market Value $16,140,000 7,260,000 10,750,000 15,820,000 16,810,000 16,240,000 14,930,000 $97,950,000 580 52,500,000 1,261 $150,450,000 (I) Lennar Optioness me subject to the Option Agreements. A small area of property affecting 4 of the proposed 1,261 home sites may annex into the District. The annexation has not yet occurred and Harvest. , LLC can not predict, when or if the armexation will occur. The fee simple market value includes the value of extensive grading and infrastructure improvements completed as of the date of value and the improvements to be financed by the Series 2004 Bonds. The market values reported in the Appraisal result in an estimated overall value -to -lien ratio of 9.97:1 *, calculated with respect to the Series 2004 Bonds and including $1,388,296 as the District's approximately share of the $17,3 10, 000 special tax bonds issued by Community Facilities District No. 01-2 (Harveston). Thevalue-to- lien ratios of individual parcels will differ from the foregoing aggregate value -to -lien ratio. See "— Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership" and Tables 6 and 7 — Value -to -Lien Analysis" in the "PROPERTY OWNERSHIP" section. See `BONDOWNERS' RISKS — Appraised Values"and `BONDOWNERS' RISKS — Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property" herein and APPENDIX C — "Summary Appraisal Report" appended hereto for further information on the Appraisal and for limiting conditions relating to the Appraisal. The Appraisal estimated the value of the property in Phase 2 of the District as "finished lots," that is, lots that are fully improved and ready for homes to be built. This reflects that the lots have had fine grading, all in -tract streets and utilities have been completed and fees have been paid or credited (sewer, water, road, library, park, school, etc.) up to the stage of pulling building permits (which, as described in the "COMMUNITY FACILITIES DISTRICT — Location and Description of District" above, is not yet the condition of the property within the District), less the estimated cost to achieve finished lots (based on the M status of the development process as of June , 2004). The estimate of value was based on fee simple ownership, subject only to easements of record and the lien of the Special Taxes and other special tax and assessment liens. As of the June 1, 2004 date of value, the land within Phases 2B was in a graded blue -top condition and the land in Phase 3 was in a mass graded condition. Due to the sizes of the aggregate ownership of Phases 2B and 3 (580 dwelling units) and since the Phase 3 lots are not anticipated to be sold to Merchant Builders until late 2005, the Appraiser used a subdivision or developmental approach. This method uses a discounted cash flow analysis which involves the discounting of the projected net proceeds from assumed sales of the land over the appropriate period of time. The sales of land represent the gross proceeds, less deductions for the remaining land development costs, costs of overhead and marketing, holding cost, and profit to the master developer. The estimated net proceeds over time are then discounted at a rate of 20% to a present value indication. The District makes no representation as to the accuracy or completeness of the Appraisal. See Appendix C hereto for more information relating to the Appraisal. BONDOWNERS' RISKS In addition to the other information contained in this Official Statement, the following risk factors should be carefully considered in evaluating the investment quality ofthe Series 2004 Bonds. The Authority cautions prospective investors that this discussion does not purport to be comprehensive or definitive, the risk factors are listed in no particular order of importance, and does not purport to be a complete statement of all factors which maybe considered as risks in evaluating the credit quality ofthe Series 2004 Bonds. The occurrence of one or more of the events discussed herein could adversely affect the ability or willingness of property owners in the District to pay their Special Taxes when due. Any such failure to pay Special Tares could result in the inability ofthe Authority to make full and punctual payments ofdebt service on the Series 2004 Bonds. In addition, the occurrence ofone or more ofthe events discussed herein could adversely affect the value ofthe property in the District. Risks of Real Estate Secured Investments Generally The Bondowners will be subject to the risks generally incident to an investment secured by real estate, including, without limitation, (i) adverse changes in local market conditions, such as changes in the market value ofreal property in the vicinity ofthe District, the supply ofor demand for competitive properties in such area, and the market value of residential property and/or sites in the event of sale or foreclosure; (ii) changes in real estate tax rate and other operating expenses, governmental rules (including, without limitation, zoning laws and laws relating to endangered species and hazardous materials) and fiscal policies; and (iii) natural disasters (including, without limitation, earthquakes, wildfires and floods), which may result in uninsured losses. Concentration of Ownership As of the date hereof, Harveston, LLC and LEN-Inland, LLC are responsible for most of the Special Taxes. If any such entity fails in its obligations under the applicable agreements or if any such entity is unwilling or unable to pay the Special Tax when due, a potential shortfall in the Bond Fund could occur, which would result in the depletion of the Reserve Fund prior to reimbursement from the resale of foreclosed property or payment of the delinquent Special Taxes and, consequently, a delay or failure in payments of the principal of or interest on the Series 2004 Bonds. No property owner is obligated in any manner to continue to own and/or develop any of the land it presently owns within the District. The Special Taxes are not a personal obligation of Harveston, LLC, LEN- Inland, LLC, any Merchant Builder or of any owner of the parcels, and the District can offer no assurance that any current owner or any future owner will be financially able to pay such installments or that it will choose to pay even if financially able to do so. 47 Failure to Develop Properties Development of property within the District may be subject to economic considerations and unexpected delays, disruptions and changes which may affect the willingness and ability of Harveston, LLC, LEN-Inland, LLC or Merchant Builders or any property owner to pay the Special Taxes when due. Land development is also subject to comprehensive federal, State and local regulations. Approval is required from various agencies in connection with the layout and design of developments, the nature and extent of improvements, construction activity, land use, zoning, school and health requirements, as well as numerous other matters. Grading is currently underway on the northerly or first phase of development. See "— Government Approvals" below. It is possible that the approvals necessary to complete development of the property within the District will not be obtained on a timely basis. Failure to obtain any such approval could adversely affect land development operations within the District. In addition, there is a risk that future governmental restrictions on land development within the District will be enacted, either directly by a governmental entity with jurisdiction or by the voters through the exercise of the initiative power. The failure to complete the development or the required infrastructure in the District or substantial delays in the completion of the development or the required infrastructure for the development due to litigation, the inability to obtain required funding, failure to obtain necessary governmental approval or other causes may reduce the value of the property within the District and increase the length of time during which Special Taxes will be payable from Undeveloped Property, and may affect the willingness and ability of the owners of property within the District to pay the Special Taxes when due. See "SECURITY FOR THE SERIES 2004 BONDS." Bondowners should assume that any event that significantly impacts the ability to develop land in the District would cause the property values within the District to decrease and could affect the willingness and ability of the owners of land within the District to pay the Special Taxes when due. Special Taxes Are Not Personal Obligations The owners of land within the District are not personally liable for the payment of the Special Taxes. Rather, the Special Tax is an obligation only of the land within the District. If the value of the land within the District is not sufficient to fully secure the Special Tax, then the District has no recourse against the owners under the laws by which the Special Tax has been levied and the Series 2004 Bonds have been issued. The Series 2004 Bonds Are Limited Obligations of the District The District has no obligation to pay principal of and interest on the Series 2004 Bonds in the event Special Tax collections are delinquent, other than from amounts, if any, on deposit in certain funds and accounts held under the Fiscal Agent Agreement, or funds derived from the tax sale or foreclosure and sale of parcels on which levies of the Special Tax are delinquent, nor is the District obligated to advance funds to pay such debt service on the Bonds. Appraised Values The Appraisal summarized in Appendix C hereto estimates the fee simple interest market value of the Taxable Property within the District. This value is merely the present opinion of the Appraiser, and is qualified by the Appraiser as stated in the Appraisal. The Authority has not sought the present opinion of any other appraiser of the value of the Taxable Property. A different present opinion of such value might be rendered by a different appraiser. The opinion of value relates to sale by a willing seller to a willing buyer, each having similar information and neither being forced by other circumstances to sell nor to buy. Consequently, the opinion is of limited use in predicting the selling price at a foreclosure sale, because the sale is forced and the buyer may not have the benefit of full information. 48 In addition, the opinion is a present opinion. It is based upon present facts and circumstances. Differing facts and circumstances may lead to differing opinions of value. The appraised market value is not evidence of future value because future facts and circumstances may differ significantly from the present. No assurance can be given that if any of the Taxable Property in the District should become delinquent in the payment of Special Taxes, and be foreclosed upon, that such property could be sold for the amount of estimated market value thereof contained in the Appraisal. Land Development A major risk to the Bondowners is that development by the property owners in the District may be subject to unexpected delays, disruptions and changes which may affect the willingness and ability of the property owners to pay Special Taxes when due. For example, proposed development within a portion of the District could be adversely affected by delays in or the inability to obtain final environmental clearances required in connection with particular parcels of property, delays in or the inability to complete off -site public improvements within the times required by the First, Second and Third Operating Memorandum, unfavorable economic conditions, competing development projects, an inability of the current owners or future owners of the parcels to obtain financing, fluctuations in the real estate market or interest rates, unexpected increases in development costs, changes in federal, state or local governmental policies relatingto the ownership of real estate, faster than expected depletion of existing water allocations, the appearance of previously unknown environmental impacts necessitating preparation ofa supplemental environmental impact report, and by other similar factors. There can be no assurance that land development operations within the District will not be adversely affected by the factors described above. In addition, partially developed land is less valuable than developed land and provides less security for the Series 2004 Bonds (and therefore to the Bondowners) should it be necessary for the District to foreclose on undeveloped property due to the nonpayment of Special Taxes. Moreover, failure to complete future development on a timely basis could adversely affect the land values of those parcels which have been completed. Lower land values result in less security for the payment of principal of and interest on the Series 2004 Bonds and lower proceeds from any foreclosure sale necessitated by delinquencies in the payment of the Special Taxes. Furthermore, an inability to develop the land within the District as planned will reduce the expected diversity of ownership of land within the District, making the payment of debt service on the Series 2004 Bonds more dependent upon timely payment of the Special Taxes levied on the undeveloped property. Because of the concentration of undeveloped property ownership, the timely payment of the Series 2004 Bonds depends upon the willingness and ability of the current owners of undeveloped land and any Merchant Builders to whom finished lots are sold to pay the Special Taxes levied on the undeveloped land when due. Furthermore, continued concentration of ownership increases the potential negative impact of a bankruptcy or other financial difficulty experienced by the existing landowners. See "— Concentration of Ownership" above. Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property While the Special Taxes are secured by the Taxable Property, the security only extends to the value of such Taxable Property that is not subject to priority and parity liens and similar claims. The table in the section entitled "PROPERTY OWNERSHIP — Direct and Overlapping Debt' presents the presently outstanding amount of governmental obligations (with stated exclusions), the tax or assessment which is or may become an obligation of one or more of the parcels of Taxable Property, and furthermore states the additional amount of general obligation bonds the tax for which, if and when issued, may become an obligation of one or more of the parcels of Taxable Property. The table does not specifically identify which of the governmental obligations are secured by liens on one or more of the parcels of Taxable Property. In addition, other governmental obligations may be authorized and undertaken or issued in the future, the tax, assessment or charge for which may become an obligation of one or more of the parcels of Taxable 49 Property and may be secured by a lien on a parity with the lien of the Special Tax securing the Series 2004 Bonds. In general, the Special Tax and all other taxes, assessments and charges collected on the County tax roll are on a parity, that is, are of equal priority. Questions of priority become significant when collection of one or more of the taxes, assessments or charges is sought by some other procedure, such as foreclosure and sale. In the event of proceedings to foreclose for delinquency of Special Taxes securing the Series 2004 Bonds, the Special Tax will be subordinate only to existing prior governmental liens, if any. Otherwise, in the event of such foreclosure proceedings, the Special Taxes will generally be on a parity with the other taxes, assessments and charges, and will share the proceeds of such foreclosure proceedings on a pro-rata basis. Although the Special Taxes will generally have priority over non -governmental liens on a parcel of Taxable Property, regardless of whether the non -governmental liens were in existence at the time of the levy of the Special Tax or not, this result may not apply in the case of bankruptcy. While governmental taxes, assessments and charges are a common claim against the value of a parcel of Taxable Property, other less common claims may be relevant. One of the most serious in terms of the potential reduction in the value that may be realized to pay the Special Tax is a claim with regard to a hazardous substance. See " — Hazardous Substances" below. Disclosure to Future Purchasers The District has recorded a notice of the Special Tax lien in the Office of the Riverside County Recorder on December 11, 2003, as Document No. 2003-970556. While title companies normally refer to such notices in title reports, there can be no guarantee that such reference will be made or, if made, that a prospective purchaser or lender will consider such Special Tax obligation in the purchase of a parcel of land or a home in the District or the lending of money thereon. The Act requires the subdivider (or its agent or representative) of a subdivision to notify a prospective purchaser or long-term lessor of any lot, parcel, or unit subject to a Mello -Roos special tax of the existence and maximum amount of such special tax using a statutorily prescribed form. California Civil Code Section 1102.6b requires that in the case of transfers other than those covered by the above requirement, the seller must at least make a good faith effort to notify the prospective purchaser of the special tax lien in a format prescribed by statute. Failure by an owner of the property to comply with the above requirements, or failure by a purchaser or lessor to consider or understand the nature and existence of the Special Tax, could adversely affect the willingness and ability of the purchaser or lessor to pay the Special Tax when due. Government Approvals The current landowners or their predecessors have secured most discretionary approvals, permits and government entitlements necessary to develop the land within the District. Nevertheless, development within the District is contingent upon the construction of a number of major public improvements as well as the necessary local in -tract improvements. The installation of the necessary improvements and infrastructure is subject to the receipt of construction or building permits from the City and other public agencies. The failure to obtain any such approval could adversely affect construction within the District. A slow down or stoppage of the construction process could adversely affect land values. No assurance can be given that permits will be obtained in a timely fashion, if at all. The failure to do so may result in the prevention, or significant delays in the development of the property within the District or portions thereof. See "— Failure to Develop Properties" herein. Local, State and Federal Land Use Regulations There can be no assurance that land development operations within the District will not be adversely affected by future government policies, including, but not limited to, governmental policies which directly or indirectly restrict or control development. During the past several years, citizens of a number of local communities in California have placed measures on the ballot designed to control the rate of future development. During the past several years, state and federal regulatory agencies have significantly expanded their involvement in local land use matters through increased regulatory enforcement of various environmental laws, including the Endangered Species Act, the Clean Water Act and the Clean Air Act, 50 among others. Such regulations can substantially impair the rate and amount of development without requiring just compensation unless the effect of the regulation is to deny all economic use of the affected property. Bondowners should assume that any event that significantly impacts the ability to construct homes on land in the District could cause the land values within the District to decrease substantially and could affect the willingness and ability of the owners of land to pay the Special Taxes when due or to proceed with development of land in the District. See "— Failure to Develop Properties" herein. Endangered and Threatened Species It is illegal to harm or disturb any plants or animals in their habitat that have been listed as endangered species by the United States Fish & Wildlife Service under the Federal Endangered Species Act or by the California Fish & Game Commission under the California Endangered Species Act without a permit. Thus, the presence of an endangered plant or animal could delay development of undeveloped property in the District or reduce the value of undeveloped property. Failure to develop the undeveloped property in the District as planned, or substantial delays in the completion of the planned development of the property may increase the amount of Special Taxes to be paid by the owners of undeveloped property and affect the willingness and ability of the owners of property within the District to pay the Special Taxes when due. See "THE COMMUNITY FACILITIES DISTRICT— Environmental Conditions." Hazardous Substances While governmental taxes, assessments, and charges area common claim against the value of a taxed parcel, other less common claims may be relevant. One of the most serious in terms of the potential reduction in the value that may be realized to pay the Special Tax is a claim with regard to hazardous substances. In general, the owners and operators of parcels within the District may be required by law to remedy conditions of the parcels related to the releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, sometimes referred to as "CERCLA" or the "Superfund Act," is the most well-known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substances condition of a property whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance. The effect, therefore, should any parcel within the District be affected by a hazardous substance, would be to reduce the marketability and value of the parcel by the costs of remedying the condition, because the owner (or operator) is obligated to remedy the condition. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling or disposing of it. All of these possibilities could significantly affect the financial and legal ability of a property owner to develop the affected parcel or other parcels, as well as the value of the property that is realizable upon a delinquency and foreclosure. The appraised value of the property within the District does not take into account the possible reduction in marketability and value of any of the parcels of Taxable Property by reason of the possible liability of the owner (or operator) for the remedy of a hazardous substance condition of the parcel. The District has not independently verified and is not aware that the owner (or operator) of any of the parcels of Taxable Property has such a current liability with respect to any such parcels of Taxable Property, except as expressly noted. However, it is possible that such liabilities do currently exist and that the District is not aware of them. Further, it is possible that liabilities may arise in the future with respect to any of the parcels of Taxable Property resulting from the existence, currently, on the parcel of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling or disposing of it. All of these possibilities could significantly affect the value of a parcel of Taxable Property that is realizable upon a delinquency. See "THE COMMUNITY FACILITIES DISTRICT — Environmental Conditions" herein for a description of the prior use of the property. Levy and Collection of the Special Tax; Insufficiency of the Special Tax 51 The principal source of payment of principal of and interest on the Series 2004 Bonds is the proceeds of the annual levy and collection of the Special Tax against property within the District. The annual levy of the Special Tax is subject to the maximum tax rates authorized. The levy cannot be made at a higher rate even if the failure to do so means that the estimated proceeds of the levy and collection of the Special Tax, together with other available funds, will not be sufficient to pay debt service on the Series 2004 Bonds. Other funds which might be available include funds derived from the payment of penalties on delinquent Special Taxes and funds derived from the tax sale or foreclosure and sale of parcels on which levies of the Special Tax are delinquent. The levy of the Special Tax will rarely, if ever, result in a uniform relationship between the value of particular taxed parcels and the amount of the levy of the Special Tax against such parcels. Thus, there will rarely, if ever, be a uniform relationship between the value of such parcels and the proportionate share of debt service on the Series 2004 Bonds, and certainly not a direct relationship. The Special Tax levied in any particular tax year on a parcel of Taxable Property is based upon the revenue needs and application of the Rate and Method. Application of the Rate and Method will, in turn, be dependent upon certain development factors with respect to each parcel of Taxable Property by comparison with similar development factors with respect to the other parcels of Taxable Property within the District. Thus, in addition to annual variations of the revenue needs from the Special Tax, the following are some of the factors which might cause the levy of the Special Tax on any particular parcel of Taxable Property to vary from the Special Tax that might otherwise be expected: (1) Reduction in the number of parcels of Taxable Property, for such reasons as acquisition of parcels of Taxable Property by a government and failure of the government to pay the Special Tax based upon a claim of exemption or, in the case of the federal government or an agency thereof, immunity from taxation, thereby resulting in an increased tax burden on the remaining parcels of Taxable Property. (2) Failure of the owners of parcels of Taxable Property to pay the Special Tax and delays in the collection of or inability to collect the Special Tax by tax sale or foreclosure sale of the delinquent parcels, thereby resulting in an increased tax burden on the remaining parcels. Except as set forth above under "SECURITY FOR THE SERIES 2004 BONDS — Special Taxes" and "— Rate and Method" herein, the Fiscal Agent Agreement provides that the Special Tax is to be collected in the same manner as ordinary ad valorem property taxes are collected and, except as provided in the special covenant for foreclosure described in "SECURITY FOR THE SERIES 2004 BONDS — Proceeds of Foreclosure Sales" and in the Act, is subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem property taxes. Pursuant to these procedures, if taxes are unpaid, the property is then is subject to sale by the District. In addition, the Rate and Method limits the increase of Special Taxes levied on parcels of Developed Property to cure delinquencies of other property owners in the District. See "SECURITY FOR THE SERIES 2004 BONDS — Rate and Method" herein. In the event that sales or foreclosures of property are necessary, there could be a delay in payments to owners of the Series 2004 Bonds pending such sales or the prosecution of foreclosure proceedings and receipt by the Authority of the proceeds of sale if the Reserve Fund is depleted. See "SECURITY FOR THE SERIES 2004 BONDS — Proceeds of Foreclosure Sales." Exempt Properties Certain properties are exempt from the Special Tax in accordance with the Rate and Method (see "SECURITY FOR THE SERIES 2004 BONDS — Rate and Method" herein). In addition, the Act provides that properties or entities of the state, federal or local government are exempt from the Special Tax; provided, however, that property within the District acquired by a public entity through a negotiated transaction or by gift or devise, which is not otherwise exempt from the Special Tax, will continue to be subject to the Special 52 Tax. It is possible that property acquired by a public entity following a tax sale or foreclosure based upon failure to pay taxes could become exempt from the Special Tax. In addition, although the Act provides that if property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as if it were a special assessment, the constitutionality and operation of these provisions of the Act have not been tested, meaning that such property could become exempt from the Special Tax. In the event that additional property is dedicated to the City or other public entities, this additional property might become exempt from the Special Tax. The Act further provides that no other properties or entities are exempt from the Special Tax unless the properties or entities are expressly exempted in a resolution of consideration to levy a new special tax or to alter the rate or method of apportionment of an existing special tax. Depletion of Reserve Fund The Reserve Fund is to be maintained at an amount equal to the Reserve Requirement (see "SECURITY FOR THE SERIES 2004 BONDS — Special Tax Fund —Disbursements" herein). Funds in the Reserve Fund may be used to pay principal of and interest on the Series 2004 Bonds in the event the proceeds of the levy and collection of the Special Tax against property within the District is insufficient. If funds in the Reserve Fund for the Series 2004 Bonds are depleted, the funds can be replenished from the proceeds of the levy and collection of the Special Tax that are in excess of the amount required to pay all amounts to be paid to the Bondowners pursuant to the Fiscal Agent Agreement. However, no replenishment from the proceeds of a Special Tax levy can occur as long as the proceeds that are collected from the levy of the Special Tax against property within the District at the maximum tax rates, together with other available funds, remains insufficient to pay all such amounts. Thus it is possible that the Reserve Fund will be depleted and not be replenished by the levy of the Special Tax. Potential Delay and Limitations in Foreclosure Proceedings The payment of property owners' taxes and the ability of the District to foreclose the lien of a delinquent unpaid Special Tax pursuant to its covenant to pursue judicial foreclosure proceedings, may be limited by bankruptcy, insolvency or other laws generally affecting creditors' rights or by the laws of the State relating to judicial foreclosure. See "SECURITY FOR THE SERIES 2004 BONDS — Proceeds of Foreclosure Sales" and `BONDOWNERS' RISKS —Bankruptcy and Foreclosure Delay" herein. In addition, the prosecution of a foreclosure could be delayed due to many reasons, including crowded local court calendars or lengthy procedural delays. The ability of the District to collect interest and penalties specified by State law and to foreclose against properties having delinquent Special Tax installments may be limited in certain respects with regard to properties in which the Federal Deposit Insurance Corporation (the "FDIC") has or obtains an interest. The FDIC would obtain such an interest by taking over a financial institution which has made a loan which is secured by property within the District. The FDIC has adopted apolicy statement regarding the payment ofstate and local real property taxes (the "Policy Statement") which provides that the FDIC intends to pay valid real property taxes, interest and penalties, in accordance with state law, on property which at the time of the tax levy is owned by a financial institution in an FDIC receivership, unless abandonment of the FDIC interest is determined to be appropriate. However, the Policy Statement is unclear as to whether the FDIC considers special taxes such as the Special Taxes to be "real property taxes" which it intends to pay. Furthermore, the Policy Statement provides that, with respect to parcels on which the FDIC holds a mortgage lien, it will not permit its lien to be foreclosed by a taxing authority without its specific consent, and that it will not pay or recognize liens for any penalties, fines, or similar claims imposed for the non-payment of taxes. The Authority and the District are unable to predict what effect the application of the Policy Statement would have in the event of a delinquency on a parcel within the District in which the FDIC has or obtains an interest, although prohibiting the lien of the FDIC to be foreclosed at ajudicial foreclosure sale would likely reduce or eliminate the persons willing to purchase a parcel at a foreclosure sale. 53 In addition, potential investors should be aware thatjudicial foreclosure proceedings are not summary remedies and can be subject to significant procedural and other delays caused by crowded court calendars and other factors beyond control of the Authority or the District. Potential investors should assume that, under current conditions, it is estimated that a judicial foreclosure of the lien of Special Taxes will take up to two or three years from initiation to the lien foreclosure sale. At a Special Tax lien foreclosure sale, each parcel will be sold for not less than the "minimum bid amount" which is equal to the sum of all delinquent Special Tax installments, penalties and interest thereon, costs of collection (including reasonable attorneys' fees), post -judgment interest and costs of sale. Each parcel is sold at foreclosure for the amounts secured by the Special Tax lien on such parcel and multiple parcels may not be aggregated in a single "bulk" foreclosure sale. If any parcel fails to obtain a "minimum bid," the Authority may, but is not obligated to, seek superior court approval to sell such parcel at an amount less than the minimum bid. Such Superior Court approval requires the consent of the owners of 75% of the aggregate principal amount of the Outstanding Bonds. Bankruptcy and Foreclosure Delay The payment of Special Taxes and the ability of the District to foreclose the lien of a delinquent Special Taxes as discussed in the section herein entitled "SECURITY FOR THE SERIES 2004 BONDS" may be limited by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to judicial foreclosure. In addition, the prosecution of a judicial foreclosure maybe delayed due to congested local court calendars or procedural delays. The various legal opinions to be delivered concurrently with the delivery of the Series 2004 Bonds (including Bond Counsel's approving legal opinion) will be qualified, as to the enforceability of the various legal instruments, by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. Although bankruptcy proceedings would not cause the obligation to pay the Special Tax to become extinguished, bankruptcy of a property owner or of a partner or other equity owner of a property owner, could result in a stay of enforcement of the lien for the Special Taxes, a delay in prosecuting Superior Court foreclosure proceedings or adversely affect the ability or willingness of a property owner to pay the Special Taxes and could result in the possibility of delinquent Special Taxes not being paid in full. In addition, the amount of any lien on property securing the payment of delinquent Special Taxes could be reduced if the value of the property were determined by the bankruptcy court to have become less than the amount of the lien, and the amount of the delinquent Special Taxes in excess of the reduced lien could then be treated as an unsecured claim by the court. Any such stay of the enforcement of the lien for the Special Tax, or any such delay or non-payment, would increase the likelihood of a delay or default in payment of the principal of and interest on the Series 2004 Bonds and the possibility of delinquent Special Taxes not being paid in full. Moreover, amounts received upon foreclosure sales may not be sufficient to fully discharge delinquent installments. To the extent that a significant percentage of the property in the District is owned by any major landowner, any Merchant Builders or any other property owner, and such owner is the subject of bankruptcy proceedings, the payment of the Special Tax and the ability of the Authority to foreclose the lien of a delinquent unpaid Special Tax could be extremely curtailed by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to judicial foreclosure. On July 30, 1992, the United States Court of Appeals for the Ninth circuit issued its opinion in a bankruptcy case entitled In re Glasply Marine Industries. In that case, the court held that ad valorem property taxes levied by Snohomish County in the State of Washington after the date that the property owner filed a petition for bankruptcy were not entitled to priority over a secured creditor with a prior lien on the property. The court upheld the priority of unpaid taxes imposed after the filing of the bankruptcy petition as "administrative expenses" of the bankruptcy estate, payable after all secured creditors. As a result, the secured creditor was to foreclose on the property and retain all of the proceeds of the sale except the amount of the pre -petition taxes. According to the court's ruling, as administrative expenses, post -petition taxes would have to be paid, assuming that the debtor has sufficient assets to do so. In certain circumstances, payment of such administrative expenses may be allowed to be deferred. Once the property is transferred out of the 54 bankruptcy estate (through foreclosure or otherwise) it would at that time become subject to current ad valorem taxes. The Act provides that the Special Taxes are secured by a continuing lien, which is subject to the same lien priority in the case of delinquency as ad valorem taxes. No case law exists with respect to how a bankruptcy court would treat the lien for the Special Taxes levied after the filing of a petition in bankruptcy. Glasply is controlling precedent for bankruptcy courts in the State. If the Glasply precedent was applied to the levy of the Special Tax, the amount of Special Tax received from parcels whose owners declare bankruptcy could be reduced. It should also be noted that on October 22, 1994, Congress enacted 11 U.S. C. Section 362(b)(18), which added a new exception to the automatic stay for ad valorem property taxes imposed by a political subdivision after the filing of a bankruptcy petition. Pursuant to this new provision of law, in the event of a bankruptcy petition filed on or after October 22, 1994, the lien for ad valorem taxes in subsequent fiscal years will attach even if the property is part of the bankruptcy estate. Bondowners should be aware that the potential effect of 11 U.S. C. Section 362(b)(I8) on the Special Taxes depends upon whether a court were to determine that the Special Taxes should be treated like ad valorem taxes for this purpose. Payments by FDIC and Other Federal Agencies The ability of the Authority to collect interest and penalties specified by state law and to foreclose the lien of delinquent Special Taxes may be limited in certain respects with regard to properties in which the FDIC, the Drug Enforcement Agency, the Internal Revenue Service or other similar federal governmental agencies has or obtains an interest. Specifically, with respect to the FDIC, on June 4, 1991, the FDIC issued a Statement of Policy Regarding the Payment of State and Local Property Taxes (the "1991 Policy Statement"). The 1991 Policy Statement was revised and superseded by a new Policy Statement effective January 9, 1997 (the "Policy Statement"). The Policy Statement provides that real property owned by the FDIC is subject to state and local real property taxes only if those taxes are assessed according to the property's value, and that the FDIC is immune from real property taxes assessed on any basis other than property value. According to the Policy Statement, the FDIC will pay its property tax obligations when they become due and payable and will pay claims for delinquent property taxes as promptly as is consistent with sound business practice and the orderly administration of the institution's affairs, unless abandonment of the FDIC's interest in the property is appropriate. The FDIC will pay claims for interest on delinquent property taxes owed at the rate provided under state law, to the extent the interest payment obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of fines or penalties and will not pay nor recognize liens for such amounts. If any property taxes (including interest) on FDIC owned property are secured by a valid lien (in effect before the property became owned by the FDIC), the FDIC will pay those claims. The Policy Statement further provides that no property of the FDIC is subject to levy, attachment, garnishment, foreclosure or sale without the FDIC's consent. In addition, the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by foreclosure without the FDIC's consent. The Policy Statement states that the FDIC generally will not pay non ad valorem taxes, including special assessments, on property in which it has a fee interest unless the amount of tax is fixed at the time that the FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it purports to secure the payment of any such amounts. Special taxes imposed under the Act and a special tax formula which determines the special tax due each year, are specifically identified in the Policy Statement as being imposed each year and therefore covered by the FDIC's federal immunity. With respect to property in California owned by the FDIC on January 9, 1997 and that was owned by the Resolution Trust Corporation (the "RTC") on December 31, 1995, or that became the property of the FDIC through foreclosure of a security interest held by the RTC on that date, the FDIC will continue the RTC's prior practice of paying special taxes imposed pursuant to the Act if the taxes were imposed prior to the RTC's acquisition of an interest in the property. All other special taxes may be challenged by the FDIC. The FDIC has filed claims against the County of Orange with respect to Mello -Roos District special taxes in the United States Bankruptcy Court and in Federal District Court in which the FDIC has taken a 55 position similar to the position outlined in the Policy Statement. While all of such claims have not been resolved, the Bankruptcy Court has issued a tentative ruling in favor of the FDIC on certain of such claims. The County of Orange has appealed such ruling and the FDIC has cross -appealed. The decision of the United States Court of Appeals for the 9' Circuit (the "9th Circuit Court") was filed on August 28, 2001. In its decision, the 9`s Circuit Court stated that the FDIC, as a federal agency, is exempt from the Mello -Roos Special Tax. The FDIC has also filed suit (the "post -bankruptcy" suit) regarding special taxes imposed after 1994. However, such action has been stayed pending resolution of the 9 Circuit Court appeal by the FDIC regarding the bankruptcy case. The post -bankruptcy suit has recently been consolidated with the cases filed by the FDIC against other California counties and is pending in the United States District Court in Los Angeles. The FDIC has filed a motion to lift the bankruptcy stay. The Authority is unable to predict what effect the application of the Policy Statement would have in the event of a delinquency on a parcel within the District in which the FDIC has or obtains an interest, although prohibiting the lien of the FDIC to be foreclosed at ajudicial foreclosure sale would reduce or eliminate the persons willing to purchase a parcel at a foreclosure sale. Bondowners should assume that the District will be unable to foreclose on any parcel owned by the FDIC. Such an outcome could cause a draw on the Reserve Fund and perhaps, ultimately, a default in payment on the Series 2004 Bonds. Based upon the secured tax roll as of January 1, 2003, the FDIC does not presently own any of the property in the District. The Authority expresses no view concerning the likelihood that the risks described above will materialize while the Series 2004 Bonds are outstanding. Payment of Special Tax Not a Personal Obligation of the Property Owners An owner of Taxable Property is not personally obligated to pay the Special Tax. Rather, the Special Tax is an obligation only against the parcels of Taxable Property. If the value of the parcels of Taxable Property is not sufficient, taking into account other obligations also payable thereby to fully secure the Special Tax, the District has no recourse against the owner. Factors Affecting Parcel Values and Aggregate Value Geologic, Topographic and Climatic Conditions. The value of the Taxable Property in the District in the future can be adversely affected by a variety of additional factors, particularly those which may affect infrastructure and other public improvements and private improvements on the parcels of Taxable Property and the continued habitability and enjoyment of such private improvements. Such additional factors include, without limitation, geologic conditions such as earthquakes and volcanic eruptions, topographic conditions such as earth movements, landslides, liquefaction, floods or fires, and climatic conditions such as tornadoes, droughts, and the possible reduction in water allocation or availability. It can be expected that one or more of such conditions may occur and may result in damage to improvements of varying seriousness, that the damage may entail significant repair or replacement costs and that repair or replacement may never occur either because of the cost or because repair or replacement will not facilitate habitability or other use, or because other considerations preclude such repair or replacement. Under any of these circumstances, the value of the parcels of Taxable Property may well depreciate or disappear. Seismic Conditions. The District, like all California communities, may be subject to unpredictable seismic activity. The occurrence of seismic activity in the District could result in substantial damage to properties in the District which, in turn, could substantially reduce the value of such properties and could affect the ability or willingness of the property owners to pay their Special Taxes. Any major damage to structures as a result of seismic activity could result in greater reliance on undeveloped property in the payment of Special Taxes. Legal Requirements. Other events which may affect the value of a parcel of Taxable Property in the District include changes in the law or application of the law. Such changes may include, without limitation, local growth control initiatives, local utility connection moratoriums and local application of statewide tax and governmental spending limitation measures. 56 No Acceleration Provisions The Series 2004 Bonds do not contain a provision allowing for the acceleration of the Series 2004 Bonds in the event of a payment default or other default under the terms of the Series 2004 Bonds or the Fiscal Agent Agreement. Pursuant to the Fiscal Agent Agreement, a Bondowner is given the right for the equal benefit and protection of all Bondowners similarly situated to pursue certain remedies (see APPENDIX E — "Summary of Certain Provisions of the Fiscal Agent Agreement' herein). So long as the Series 2004 Bonds are in book -entry form, DTC will be the sole Bondowner and will be entitled to exercise all rights and remedies of Bondowners. Community Facilities District Formation California voters, on June 6, 1978, approved an amendment ("Article XIIIA") to the California Constitution. Section 4 of Article XIIIA, requires a vote of two-thirds of the qualified electorate to impose "special taxes," or any additional ad valorem, sales or transaction taxes on real property. At an election held pursuant to the Act, more than two-thirds of the qualified electors within the District, consisting of the landowners within the boundaries of the District, authorized the District to incur bonded indebtedness to finance the development of the property within the District and approved the Rate and Method of Apportionment. The Supreme Court of the State has not yet decided whether landowner elections (as opposed to resident elections) satisfy requirements of Section 4 of Article XIIIA, nor has the Supreme Court decided whether the special taxes of a District constitute a "special tax" for purposes of Article XIIIA. Section 53341 of the Act requires that any action or proceeding to attack, review, set aside, void or annul the levy of a special tax or an increase in a special tax pursuant to the Act shall be commenced within 30 days after the special tax is approved by the voters. No such action has been filed with respect to the Special Tax. Billing of Special Taxes A special tax formula can result in a substantially heavier property tax burden being imposed upon properties within a District than elsewhere in a city or county, and this in turn can lead to problems in the collection of the special tax. In some Districts the taxpayers have refused to pay the special tax and have commenced litigation challenging the special tax, the District and the bonds issued by the District. Under provisions of the Act, the Special Taxes are billed to the properties within the District which were entered on the Assessment Roll of the County Assessor by January 1 of the previous fiscal year on the regular property tax bills sent to owners of such properties. Such Special Tax installments are due and payable, and bear the same penalties and interest for non-payment, as do regular property tax installments. These Special Tax installment payments cannot be made separately from property tax payments. Therefore, the unwillingness or inability of a property owner to pay regular property tax bills as evidenced by property tax delinquencies may also indicate an unwillingness or inability to make regular property tax payments and installment payments of Special Taxes in the future. See "SECURITY FOR THE SERIES 2004 BONDS — Proceeds of Foreclosure Sales," for a discussion of the provisions which apply, and procedures which the District is obligated to follow, in the event of delinquency in the payment of installments of Special Taxes. Collection of Special Tax In order to pay debt service on the Series 2004 Bonds, it is necessary that the Special Tax levied against land within the District be paid in a timely manner. The District has covenanted in the Fiscal Agent Agreement under certain conditions to institute foreclosure proceedings against property with delinquent Special Tax in order to obtain funds to pay debt service on the Series 2004 Bonds. If foreclosure proceedings were instituted, any mortgage or deed of trust holder could, but would not be required to, advance the amount of the delinquent Special Tax to protect its security interest. In the event such superior court foreclosure is necessary, there could be a delay in principal and interest payments to the Bondowners pending prosecution of the foreclosure proceedings and receipt of the proceeds of the foreclosure sale, if any. No assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if GyA sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Tax installment. Although the Act authorizes the Authority as the Governing Board of the District to cause such an action to be commenced and diligently pursued to completion, the Act does not specify the obligations of the Governing Board with regard to purchasing or otherwise acquiring any lot or parcel of property sold at the foreclosure sale if there is no other purchaser at such sale. See "SECURITY FOR THE SERIES 2004 BONDS — Proceeds of Foreclosure Sales." Right to Vote on Taxes Act An initiative measure commonly referred to as the "Right to Vote on Taxes Act' (the "Initiative") was approved by the voters of the State at the November 5, 1996 general election. The Initiative added Article XIIIC ("Article XI IIC") and Article XIIID to the California Constitution. According to the "Title and Summary" of the Initiative prepared by the California Attorney General, the Initiative limits "the authority of local governments to impose taxes and property -related assessments, fees and charges." The provisions of the Initiative have not yet been interpreted by the courts, although a number of lawsuits have been filed requesting the courts to interpret various aspects of the Initiative. Among other things, Section 3 of Article XIII states that " ... the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge." The Act provides for a procedure, which includes notice hearing, protest and voting requirements to alter the rate and method of apportionment of an existing special tax. However, the Act prohibits a legislative body from adopting any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged to repay any debt incurred pursuant to the Act unless such legislative body determines that the reduction or termination of the special tax would not interfere with the timely retirement of that debt. On July 1, 1997, a bill signed into law by the Governor of the State enacting Government Code Section 5854, which states that: "Section 3 of Article XI I IC of the California Constitution, as adopted at the November 5, 1996, general election, shall not be construed to mean that any owner or beneficial owner of a municipal security, purchased before or after that date, assumes the risk of, or in any way consents to, any action by initiative measure that constitutes an impairment of contractual rights protected by Section 10 of Article I of the United States Constitution." Accordingly, although the matter is not free from doubt, it is likely that the Initiative has not conferred on the voters the power to repeal or reduce the Special Taxes if such reduction would interfere with the timely retirement of the Series 2004 Bonds. It may be possible, however, for voters or the District to reduce the Special Taxes in a manner which does not interfere with the timely repayment of the Series 2004 Bonds but which does reduce the maximum amount of Special Taxes that may be levied in any year below the existing levels. Therefore, no assurance can be given with respect to the levy of Special Taxes for Administrative Expenses. Furthermore, no assurance can be given with respect to the future levy ofthe Special Taxes in amounts greater than the amount necessary for the timely retirement of the Series 2004 Bonds. Like its antecedents, the Initiative is likely to undergo both judicial and legislative scrutiny before its impact on the District and its obligations can be determined. Certain provisions of the Initiative may be examined by the courts fortheir constitutionality under both State and federal constitutional law. The District is not able to predict the outcome of any such examination. The foregoing discussion of the Initiative should not be considered an exhaustive or authoritative treatment of the issues. The District does not expect to be in a position to control the consideration or disposition of these issues and cannot predict the timing or outcome of any judicial or legislative activity in this regard. Interim rulings, final decisions, legislative proposals and legislative enactments may all affect the impact of the Initiative on the Series 2004 Bonds as well as the market for the Series 2004 Bonds. Legislative and court calendar delays and other factors may prolong any uncertainty regarding the effects of the Initiative. 58 Ballot Initiatives and Legislative Measures The Initiative was adopted pursuant to a measure qualified for the ballot pursuant to California's constitutional initiative process and the State Legislature has in the past enacted legislation which has altered the spending limitations or established minimum funding provisions for particular activities. From time to time, other initiative measures could be adopted by California voters or legislation enacted by the State Legislature. The adoption of any such initiative or enactment of legislation might place limitations on the ability of the State, the County, the City, the District or local districts to increase revenues or to increase appropriations or on the ability of a property owner to complete the development of the property. Limited Secondary Market There can be no guarantee that there will be a secondary market for the Series 2004 Bonds or, if a secondary market exists, that such Series 2004 Bonds can be sold for any particular price. Although the Authority, the District and Harveston, LLC have committed to provide certain statutorily -required financial and operating information, there can be no assurance that such information will be available to Bondowners on a timely basis. The failure to provide the annual financial and operating information does not give rise to monetary damages but merely an action for specific performance. Occasionally, because of general market conditions, lack of current information or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price. Loss of Tax Exemption As discussed under the caption "LEGAL MATTERS — Tax Exemption," the interest on the Series 2004 Bonds could become includable in gross income for federal income tax purposes retroactive to the date of issuance of the Series 2004 Bonds as a result of acts or omissions of the Authority in violation of certain provisions of the Code and the covenants of the Fiscal Agent Agreement. In order to maintain the exclusion from gross income for federal income tax purposes of the interest on the Series 2004 Bonds, the Authority has covenanted in the Fiscal Agent Agreement not to take any action, or fail to take any action, if such action or failure to take such action would adversely affect the exclusion from gross income of interest on the Series 2004 Bonds under the Internal Revenue Code of 1986, as amended. Should such an event of taxability occur, the Series 2004 Bonds are not subject to early redemption and will remain outstanding to maturity or until redeemed under the optional redemption or mandatory redemption provisions of the Fiscal Agent Agreement. Limitations on Remedies Remedies available to the Bondowners may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest on the Series 2004 Bonds or to preserve the tax- exempt status of the Series 2004 Bonds. See "— Payments by FDIC and other Federal Agencies," "—No Acceleration Provisions" and "— Billing of Special Taxes" herein. LEGAL MATTERS Legal Opinion The legal opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, approving the validity of the Series 2004 Bonds will be made available to purchasers at the time of original delivery and the form of such opinion is attached hereto as Appendix H. Tax Exemption In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however to the qualifications set forth below, under existing law, the interest on the Series 2004 Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for M purposes of the federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that, for purposes of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining certain income and earnings. The opinions set forth in the preceding paragraph are subject to the condition that the Authority comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied subsequent to the issuance of the Series 2004 Bonds in order that such interest be, or continue to be, excluded from gross income for federal income tax purposes. The Authority has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Series 2004 Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Series 2004 Bonds. In the further opinion of Bond Counsel, interest on the Series 2004 Bonds is exempt from California personal income taxes. Bondowners should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the Series 2004 Bonds may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the Series 2004 Bonds other than as expressly described above. The form of Bond Counsel's opinion is set forth in Appendix H. No Litigation At the time of delivery ofthe Series 2004 Bonds, the Authority and the District will certify that there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court or regulatory agency, public board or body pending with respect to which they have been served with process or threatened against the Authority or the District affecting their existence, or the titles of their respective officers, or seeking to restrain or to enjoin the issuance, sale or delivery of the Series 2004 Bonds, the application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application of the Special Tax to pay the principal of and interest on the Series 2004 Bonds, or in any way contesting or affecting the validity or enforceability of the Series 2004 Bonds, orthe Fiscal Agent Agreement or any action of the Authority or the District contemplated by either of said documents, or in any way contesting the completeness or accuracy of this Official Statement or any amendment or supplement hereto, or contesting the powers of the Authority or the District or their authority with respect to the Series 2004 Bonds or any action of the Authority or the District contemplated by either of said documents, nor, to the knowledge of the Authority, is there any basis therefor. No General Obligation of the Authority or the District The Series 2004 Bonds are not general obligations of the Authority or the District, but are limited obligations of the Authority for the District payable solely from proceeds of the Special Tax and proceeds of the Series 2004 Bonds, including amounts in the Reserve Fund, the Special Tax Fund and the Bond Fund. Any tax levied for the payment of the Series 2004 Bonds shall be limited to the Special Taxes to be collected within the jurisdiction of the District. NO RATINGS The Series 2004 Bonds have not been rated by any securities rating agency. UNDERWRITING The Series 2004 Bonds are being purchased by Stone & Youngberg LLC at a purchase price of $ (which represents the aggregate principal amount ofthe Series 2004 Bonds ($ ), less original issue discount of $ and less an underwriter's discount of $ ). The purchase agreement relating to the Series 2004 Bonds provides that the Underwriter will purchase all of the Series 2004 Bonds, if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in such purchase agreement. The Underwriter may offer and sell Series 2004 Bonds to certain dealers and others at prices lower than the offering price stated on the cover page hereof. The offering prices may be changed from time to time by the Underwriter. PROFESSIONAL FEES Fees payable to certain professionals, in connection with the Series 2004 Bonds, including the Underwriter, Quint & Thimmig LLP, as Bond Counsel, McFarlin & Anderson LLP, as Disclosure Counsel, and U.S. Bank National Association, as the Fiscal Agent, are contingent upon the issuance of the Series 2004 Bonds. The fees of Albert W. Webb Associates, as Special Tax Consultant, and Fieldman, Rolapp & Associates, as Financial Advisor to the Authority, are in part contingent upon the issuance of the Series 2004 Bonds. MISCELLANEOUS References are made herein to certain documents and reports which are brief summaries thereof which summaries do not purport to be complete or definitive and reference is made to such documents and reports for full and complete statement of the contents thereof. Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representatives of fact. This Official Statement is not to be construed as a contract or agreement between the District or the Authority and the purchasers or owners of any of the Series 2004 Bonds. The execution and delivery of the Official Statement by the District has been duly authorized by the Authority on behalf of the District. TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) Un Shawn Nelson, Executive Director, Temecula Public Financing Authority, on behalf of the District 61 APPENDIX A GENERAL INFORMATION ABOUT THE CITY OF TEMECULA The following information is provided for background purposes only. The City of Temecula has no liability whatsoever with respect to the Series 2004 Bonds or the Fiscal Agent Agreement. General Information Following a vote by the residents onNovember 7, 1989, the City incorporated underthe general laws of the State of California on December 1, 1989. The City has a Council -Manager form of government, and is represented by the five members of the City Council who are elected at -large to serve a four-year term. The Mayor is selected annually by the members of the City Council. The Temecula Community Services District (TCSD) was also established in 1989. The TCSD is responsible for providing parks and recreation services to the citizens of Temecula, as well as street lighting and slope maintenance in certain areas of the district. Other governmental entities, such as the State of California, the County and various school, water and other districts, also provide various levels of service within the City of Temecula. However, the Temecula City Council does not have a continuing oversight responsibility over these other governmental entities. Located on Interstate 15, the City of Temecula is the 9' largest city in the Inland Empire and the 4' largest in Riverside County (as of January, 2002), encompassing 27.1 square miles. The City of Temecula is 85 miles southeast of Los Angeles, 55 miles north of San Diego, 61 miles southeast of Orange County, and 20 miles inland from the cities of San Juan Capistrano and Oceanside. The City's approximately 77,500 residents are offered a broad range of housing options from apartments to luxury custom homes, with the median housing price at $336,000. Population From 1990 - 2004, the City's population grew from 27,099 to 77,500, a gain of 50,401 or 186.0%. In this same period, Riverside County added 606,287, a gain of 51.8%. CITY OF TEMECULA AND COUNTY OF RIVERSIDE POPULATION FROM 1990 TO 2004 Temecula Riverside County Year Population % Change 1990 27,099 - 1991 27,264 0.6% 1992 31,005 13.7 1993 33,226 7.2 1994 35,771 7.7 1995 39,284 9.8 1996 41,850 6.5 1997 43,760 4.6 1998 46,564 6.4 1999 48,828 4.9 2000 53,791 10.2 2001' 61,531 14.4 2002 72,715 18.2 2003 75,700 4.1 2004 77,500 2.4 'Increase includes Vail Ranch annexation. Source: California Department of Finance. Population 1,170,413 1,223,227 1,268,844 1,304,447 1,331,988 1,355,571 1,381,781 1,400,384 1,441,237 1,473,307 1,522,855 1,583,591 1,645,300 1,719,000 1,776,700 % Change 4.5% 3.7 2.8 2.1 1.8 1.9 1.3 2.9 2.2 3.4 4.0 3.9 4.5 3.4 Val Construction Activity The following table shows a five year history of construction activity in the City. CITY OF TEMECULA BUILDING PERMITS AND VALUATIONS 1999 — 2003 Valuation: Residential Non-residential Total Residential Units: Single family Multiple family Total 1999 2000 2001 $180,139,36 $156,787,850 $127,823,37 77,471,298 58,320,736 39,602,913 $257,610,66 $215.108,586 $167.426.28 2002 2003 $100,516,115 $194,699,50 43A87,229 36,087,001 1144,003,344 230,786.510 1,276 1,142 944 650 1,271 198 244 0 0 142 1=74 1s386 944 650 1 Source: Construction Industry Research Board. The following table shows historical commercial and residential construction and property values. A-2 CITY OF TEMECULA COMMERCIAL AND RESIDENTIAL CONSTRUCTION AND PROPERTY VALUES 1992 — 2004 Commercial Constructionitt Residential Construction(!) Property Values(Z) Number Number Fiscal Year of Units Value of Units Value Commercial Residential 1992 158 $ 902 337 $ 10,605 $1,078,926 $1,542,280 1993 150 6,316 802 50,347 1,473,713 1,454,943 1994 130 10,639 1,186 113,002 1,526,353 1,489,077 1995 162 29,221 968 85,410 1,466,641 1,539,257 1996 136 23,572 987 93,674 1,478,230 1,677,720 1997 202 32,863 857 85,257 1,347,000 1,856,203 1998 203 66,226 835 105,527 1,321,044 1,958,706 1999 337 159,286 1,384 180,840 1,378,364 2,067,549 2000 437 52,497 1,179 148,660 1,524,091 2,303,303 2001 265 39,511 1,606 169,687 1,935,537 2,627,716 2002 252 51,686 938 97,773 2,183,862 3,017,148 2003 304 41,402 1,162 145,387 2,633,661 4,127,318 2004 [Information update may be available soon - check with David Montgomery at the County Assessor's Office.] Values in thousands of dollars. Source: (/)City of Temecula, Building and Safety Department. (2) County Land Use Statistical Recap Report. Economic Condition Temecula's economic base is anchored by a number of firms specializing in biomedical technology and supplies, high technology controllers and semi -conductors, among others. The City's retail base is also experiencing growth and is home to several auto dealers including Honda, Toyota and Nissan. The following tables set forth major manufacturing and non -manufacturing employers: A-3 CITY OF TEMECULA MAJOR MANUFACTURING EMPLOYERS (As of June, 2003) Employer Guidant International Rectifier/Hexfet Hudson Respiratory Care Inc. Channell Commercial Corp. Milgard Manufacturing Chemicon International The Scotts Company / Temecula Opto 22 Bianchi International Plant Equipment Tension Envelope Southwest Traders Source: City Finance Department. Approximate No. of Employees 2,354 560 500 350 325 195 214 213 225 200 101 166 Type of Business Medical equipment Power semi -conductors Medical equipment Cable enclosures Custom windows Medical products Manufacturing Electric/automation controls Leather goods Telephone equipment Envelope manufacturer Distributor dry goods CITY OF TEMECULA MAJOR NON -MANUFACTURING EMPLOYERS (As of June, 2003) Employer Temecula Valley Unified School District (TVUSD) Professional Hospital Supply Costco Wholesale Albertson City of Temecula Norm Reeves Auto Group Temecula Creek Inn JC Penneys Robinson -May Sears Lowe's Target Source: City Finance Department. Approximate No. of Employees Type of Business 2,132 Public school system 600 Medical equipment/supplies 404 Wholesale warehouse 275 Supermarket 236 Local Government 230 Auto dealer 180 Hospitality 209 Retail 250 Retail 250 Retail 167 Retail 180 Retail A-4 Sales Tax Revenues Industrial and business parks offering clean industries and convenient office space provide growing employment opportunities. The retail community is expanding rapidly with excellent shopping venues including the regional Promenade Mall, a unique Historic Old Town area, and neighborhood strip centers. A wide selection of restaurants allows diners to choose between nationally recognized chains or intimate dining bistros. CITY OF TEMECULA SALES TAX HISTORY Year Amount 1989-90 $632,153 1997-98 $9,186,547 1998-99 $10,652,400 1999-00 $14,009,322 2000-01 $16,321,929 2001-02 $19,237,317 2002-03 $21,572,199 2003-04' $23,900,000 Budget estimate. Source: City of Temecula Finance Department. A-5 CITY OF TEMECULA PRINCIPAL SECURED PROPERTY OWNERS FOR THE YEAR ENDED DUNE 30, 2003 2003 Assessed Percent of Valuation Total Assessed Taxpayer Type of Business (in thousands) (Valuation) Advanced Cardiovascular System Inc. Manufacturing $145,662 2.45% International Rectifier Corporation Manufacturing 135,603 2.28% Temecula Towne Center Associates Real Estate Development 73,318 1.23% Knickerbocker Properties Inc. Real Estate Development 42,080 0.71% Kimco Palm Plaza Limited Partnership Real Estate Development 40,170 0.68% GMS Realty Real Estate Development 39,564 0.67% Hudson Respiratory Care, Inc. Manufacturing 28,559 0.48% Portofino Development Real Estate Development 29,070 0.49% Starwood Wasserman Temecula Property Management 28,577 0.48% MS Temecula II Manufacturing 24,548 0.41% $587,150 9.87% Source: Riverside County Assessor's Office. CITY OF TEMECULA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY FOR THE FISCAL YEARS ENDED NNE 30, 1997 THROUGH 2O04 (Values in Thousands) Total Exemptions Net Net Total Estimated Fiscal Year Secured and Veteran Assessed Exemptions Assessed Actual Taxes Unsecured Church, etc. Value Homeowners Value Value 1997 $3,203,187 $(22,479) $3,180,911 $(53,023) $3,127,888 $3,127,888 1998 $3,280,066 $(24,432) $3,255,633 $(56,665) $3,198,969 $3,198,969 1999 $3,446,093 $(24,441) $3,421,652 $(60,119) $3,361,533 $3,361,533 2000 $3,826,889 $(25,822) $3,801,068 $(61,464) $3,739,603 $3,739,603 2001 $4,563,217 $(29,676) $4,533,542 $(64,372) $4,469,169 $4,469,169 2002 $5,201,622 $(33,370) $5,168,252 $(68,938) $5,099,314 $5,099,314 2003 $6,201,896 $(30,010) $6,171,886 $(82,926) $6,088,960 $6,088,960 2004 [Information may be available soon - check with David Montgomery at the County Assessor's Office.] Source: Riverside CountyAssessor's Office. M General Information Industrial Real Estate. The City is part of the Inland Empire's industrial real estate market. In 1999, the inland region's 26.1 million square feet of gross space absorption set a record. Lee & Associates found that in August, 2002, the City had 9.0 million square feet of industrial space or 3.0% of the inland area's inventory. Temecula's industrial vacancy rate was 12.0% representing 1.1 million square feet of space. Among local cities, this ranked ninth just below Mira Loma (1.2 million square feet) and above San Bernardino (1.06 million). Agriculture. The climate and soil in the City are particularly favorable for growing avocado, grape, and citrus crops. There are currently several agricultural management firms in the Temecula area which manage agricultural production of thousands of acres of land owned by individual investors, partnerships and corporations. The agricultural managers apply economies of scale, by combining many small and medium sized parcels of land as if these parcels were one large ranch. In addition, a substantial wine industry has been developed in the City and the surrounding area. As of June, 2004, there were nineteen (19) wineries which produce wine with locally grown grapes. Climate. Temecula Valley enjoys a mild Mediterranean climate with year-round temperatures averaging in the mid 70's. The weather is comparable to the Napa Valley, as evidenced by a thriving wine industry, with warm, dry days and cool evenings. Summer -time temperatures, which can average in the mid 80's or the mid 90's during the day, are often cooled by afternoon ocean breezes blowing into the valley through gaps in the Santa Ana foothills to the west. Although separated from the Pacific by the Santa Rosa range of mountains, the Rainbow Gap funnels the mild beach climate into the valley. Mild winter temperatures average in the mid 60's. Yearly average rainfall in Temecula is approximately 14 inches, as compiled by the Rancho California Water District. The quality of air in the Temecula Valley is consistently better than that of surrounding communities. Ocean breezes flow through the Rainbow Gap almost every day, sweeping away smog. In the summer, Pacific winds yield temperatures up to 10 degrees lower than in townsjust a few miles away. Education. The City is served by Temecula Valley Unified School District, one of the fastest growing school districts in the State, with 4 high schools (including a continuation school), 5 middle schools, 2 charter schools, 1 home -schooling program, and 13 elementary schools. In addition, there are 9 private schools and several pre-schools. The general boundaries extend north to Jean Nicholas Road in French Valley, south to the Riverside County line, east to Vail Lake, and west to the Temecula city limit. The District covers approximately 150 square miles. Approximately 23,496 students (Grades K-12) are currently enrolled in the District. The University of California, Riverside has opened an extension center in the City and Mt. San Jacinto Community College operates a campus ten miles north of the City to serve the growing population. Temecula began the 1990s with a well-educated population, and its population trends and school performance figures have allowed it to maintain that position. A-7 Transportation. Interstate 15 and its connecting arterials provide convenient links to San Diego and Riverside, Los Angeles (Interstate 10), Orange County (Highway 91) and San Bernardino (Interstate 215). The French Valley Airport, 4 miles north of Interstate 15 on Winchester Road, accommodates business jets and commuter airlines. Housing. Temecula is unique in that its residents are about equidistant from both San Diego and Orange County via the Interstate 15 freeway. As a result, it is receiving growth impulses from the south as well as the north, as families spill into the Inland Empire from Southern California's more congested coastal counties. Temecula's rapid population growth represents a relatively new phenomenon in Southern California. A large number of the City's new residents have migrated north from San Diego County along the Interstate 5 freeway. Normally, a Southern California community undergoes rapid growth only when population spills from Orange or Los Angeles counties. The latest population data shows Temecula with 77,500 residents as of January 1, 2004, which includes the annexation of the Vail Ranch area in July, 2001. APPENDIX B TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX [THIS PAGE INTENTIONALLY LEFT BLANK] APPENDIX C SUMMARY APPRAISAL REPORT APPENDIX D MARKET ABSORPTION STUDY APPENDIX E SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT APPENDIX F FORM OF COMMUNITY FACILITIES DISTRICT CONTINUING DISCLOSURE AGREEMENT APPENDIX G FORM OF HARVESTON, LLC CONTINUING DISCLOSURE AGREEMENT APPENDIX H FORM OF OPINION OF BOND COUNSEL APPENDIX I BOOK -ENTRY SYSTEM The following description ofthe procedures and record keeping with respect to beneficial ownership interests in the Series 2004 Bonds, payment ofprincipal of and interest on the Series 2004 Bonds to Direct Participants, Indirect Participants or Beneficial Owners (as such terms are defined below) ofthe Series 2004 Bonds, confirmation and transfer ofbeneficial ownership interests in the Series 2004 Bonds and other Bond - related transactions by and between DTC, Direct Participants, Indirect Participants and Beneficial Owners of the Series 2004 Bonds is based solely on information furnished by DTC to the District which the District believes to be reliable, but the Authority, the District and the Underwriter do not and cannot make any independent representations concerning these matters and do not take responsibility for the accuracy or completeness thereof. Neither the DTC, Direct Participants, Indirect Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Series 2004 Bonds. The Series 2004 Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered Series 2004 Bond will be issued for each maturity of the Series 2004 Bonds, each in the aggregate principal amount of such maturity and will be deposited with DTC. DTC, the world's largest depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues and money market instruments from over 85 countries that DTC's participants (the "Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members ofthe National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Series 2004 Bonds on DTC's records. The ownership interest of each actual I-1 purchaser of each Series 2004 Bond (the `Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements oftheir holdings, from the Director Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2004 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Series 2004 Bonds, except in the event that use of the book -entry system for the Series 2004 Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. or such other name as requested by an authorized representative of DTC. The deposit of Series 2004 Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2004 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct or Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Series 2004 Bonds may wish to take certain steps to augment the transmissions to them of notices of significant events with respect to the Series 2004 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Series 2004 Bonds documents. For example, Beneficial Owners of Series 2004 Bonds may wish to ascertain that the nominee holding the Series 2004 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. Redemption notices shall be sent to DTC. If less than all of the Series 2004 Bonds are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the Series 2004 Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the Record Date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Series 2004 Bonds are credited on the Record Date (identified in a listing attached to the Omnibus Proxy). Principal, redemption price and interest payment on the Series 2004 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the District, the Authority or the Fiscal Agent, on a payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held forthe accounts ofcustomers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC (nor the nominee), the Fiscal Agent, the Authority or the District, subject to any statutory and regulatory I-2 requirements as may be in effect from time to time. Payment of principal, redemption price and interest payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Fiscal Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its service as depository with respect to the Series 2004 Bonds at any time by giving reasonable notice to the Fiscal Agent. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered as described in the Fiscal Agent Agreement. The Authority may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered as described in the Fiscal Agent Agreement. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the Authority and the District believe to be reliable, but the Authority and the District take no responsibility for the accuracy thereof. Discontinuance of DTC Services In the event that (a) DTC determines not to continue to act as securities depository for the Series 2004 Bonds, or (b) the Authority determines that DTC shall no longer act and delivers a written certificate to the Fiscal Agent to that effect, then the Authority will discontinue the Book -Entry System with DTC for the Series 2004 Bonds. If the Authority determines to replace DTC with another qualified securities depository, the Authority will prepare or direct the preparation of a new single separate, fully registered Bond for each maturity of the Series 2004 Bonds registered in the name of such successor or substitute securities depository as are not inconsistent with the terms of the Fiscal Agent Agreement. If the Authority fails to identify another qualified securities depository to replace the incumbent securities depository for the Series 2004 Bonds, then the Series 2004 Bonds shall no longer be restricted to being registered in the Series 2004 Bond registration books in the name of the incumbent securities depository or its nominee, but shall be registered in whatever name or names the incumbent securities depository or its nominee transferring or exchanging the Series 2004 Bonds shall designate. In the event that the Book -Entry System is discontinued, the following provisions would also apply: (i) the Series 2004 Bonds will be made available in physical form, (ii) principal of, and redemption premiums if any, on the Series 2004 Bonds will be payable upon surrender thereof at the trust office of the Fiscal Agent identified in the Fiscal Agent Agreement, and (iii) the Series 2004 Bonds will be transferable and exchangeable as provided in the Fiscal Agent Agreement. The Authority, the District and the Fiscal Agent do not have any responsibility or obligation to DTC Participants, to the persons for whom they act as nominees, to Beneficial Owners, or to any other person who is not shown on the registration books as being an owner of the Series 2004 Bonds, with respect to (i) the accuracy ofany records maintained by DTC or any DTC Participants; (ii) the payment by DTC or any DTC Participant of any amount in respect of the principal of, redemption price of or interest on the Series 2004 Bonds; (iii) the delivery ofany notice which is permitted or required to be given to registered owners under the Fiscal Agent Agreement, (iv) the selection by DTC or any DTC Participant of any person to receive I-3 payment in the event ofa partial redemption of the Series 2004 Bonds; (v) any consentgiven or other action taken by DTC as registered owner; or (vi) any other matter arising with respect to the Series 2004 Bonds or the Fiscal Agent Agreement. The Authority, the District and the Fiscal Agent cannot and do not give any assurances that DTC, DTC Participants or others will distribute payments ofprincipal ofor interest on the Series 2004 Bonds paid to DTC or its nominee, as the registered owner, or any notices to the Beneficial Owners or that they will do so on a timely basis or will serve and act in a manner described in this Official Statement. The Authority, the District and the Fiscal Agent are not responsible or liable for the failure of DTC or any DTC Participant to make anypayment or give any notice to a Beneficial Owner in respect to the Series 2004 Bonds or any error or delay relating thereto. I-4 [THIS PAGE INTENTIONALLY LEFT BLANK] $ TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 BOND PURCHASE AGREEMENT August _, 2004 Temecula Public Financing Authority 43200 Business Park Drive Temecula, California 92590 Ladies and Gentlemen: Stone & Youngberg LLC (the "Underwriter") offers to enter into this Bond Purchase Agreement (the "Bond Purchase Agreement') with the Temecula Public Financing Authority (the "Authority") for and on behalf ofTemecula Public Financing Authority Community Facilities District No. 03- 06 (Harveston II) (the "District') which, upon acceptance, will be binding upon the Authority and upon the Underwriter. This offer is made subject to acceptance of it by the Authority on the date hereof, and if not accepted will be subject to withdrawal by the Underwriter upon notice delivered to the Authority at any time prior to the acceptance hereof by the Authority. Purchase Sale and Delivery of the Bonds (a) Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein, the Underwriter agrees to purchase from the Authority, and the Authority agrees to sell to the Underwriter, all (but not less than all) of the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 (the "Bonds") in the aggregate principal amount of $ . The Bonds are dated their date of delivery, and bear interest at the rates set forth in Exhibit A hereto (payable on each March 1 and September I of each year, commencing March 1, 2005) and mature on September 1, 2034. The purchase price for the Bonds shall be as set forth in Exhibit A hereto. The Bonds will be subject to demand for and mandatory purchase pursuant to the provisions of the Fiscal Agent Agreement, by and between the Authority and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent') dated as of August 1, 2004 (the "Fiscal Agent Agreement'). The Bonds shall be substantially in the form described in, shall be issued and secured under the provisions of, and shall be payable and subject to redemption as provided in, the Fiscal Agent Agreement. The Bonds and interest thereon will be payable from a special tax (the "Special Tax") levied and collected in accordance with the Fiscal Agent Agreement and OrdinanceNo. TPFA 2003-02 (the "Ordinance") adopted by the Board of Directors of the Authority (the `Board") on November 25, 2003, pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (Sections 53311 el seq. of the Government Code of the State of California) (the "Act'). The proceeds of the Bonds shall be applied (i) to finance, either directly or indirectly, the acquisition and construction of certain road, bridge and intersection improvements (collectively, the "Improvements") within or in the vicinity of the District, (ii) to fund interest on the Series 2004 Bonds through March 1, 2005, (iii) to pay certain administrative expenses of the District, (iv) to pay interest on the Series 2004 Bonds for a limited period of time, (v) to pay certain administrative expenses of the District, (iv) to pay the costs of issuing the Series 2004 Bonds and (v) to establish a Reserve Fund for the Series 2004 Bonds. (b) Pursuant to the authorization of the Authority, the Underwriter has distributed copies of the Preliminary Official Statement, dated August , 2004, relating to the Bonds, which, together with the cover page and all appendices thereto, is herein called the "Preliminary Official Statement' and which, as amended by the Authority with the prior approval of the Underwriter, will be referred to herein as the "Official Statement." The Authority hereby ratifies the use by the Underwriter of the Preliminary Official Statement and authorizes the Underwriter to use and distribute the Official Statement, the Fiscal Agent Agreement, the other documents or contracts to which the Authority is a party, including this Bond Purchase Agreement, relating to the Bonds, and all information contained therein, and all other documents, certificates and statements furnished by the Authority to the Underwriter in connection with the transactions contemplated by this Bond Purchase Agreement, in connection with the offer and sale of the Bonds by the Underwriter. (c) At 8:00 A.M., Los Angeles time, on [September _, 20041, or at such other time or on such earlier or later business day as shall be agreed upon by the Underwriter and the Authority (such time and date being herein referred to as the "Closing Date"), the Authority will deliver to the Underwriter (i) at the offices of The Depository Trust Company, in New York, New York, the Bonds in temporary or definitive form, bearing CUSIP® numbers, and duly executed by the officers of the Authority and authenticated by the Fiscal Agent as provided in the Fiscal Agent Agreement, and (ii) at the offices of Quint & Thimmig LLP, in San Francisco, California, the other documents herein mentioned; and the Underwriter shall accept such delivery and pay the purchase price of the Bonds as set forth in Section I(a) hereof by wire transfer of immediately available funds. The date of this payment and delivery, together with the delivery of the aforementioned documents, is herein called the "Closing." Notwithstanding the foregoing, the Underwriter may, in its discretion, accept delivery of the Bonds in temporary form upon making arrangements with the Authority which are satisfactory to the Underwriter relating to the delivery of the Bonds in definitive form. The Bonds shall be in fully registered form, registered in the name of CEDE & Co., as nominee of The Depository Trust Company. The failure to print CUSIP® identification numbers on any of the Bonds or any error with respect thereto shall not constitute cause for a failure or refusal of the Underwriter to accept delivery of, or pay for, the Bonds in accordance with the terms of this Bond Purchase Agreement. (d) The Underwriter agrees to offer all the Bonds to the public initially at a price of par. Subsequent to the initial public offering of the Bonds, the Underwriter reserves the right to change the public offering prices (or yields) as it deems necessary in connection with the marketing of the Bonds. The Bonds may be offered and sold to certain dealers at prices lower than such initial public offering prices. 2. Representations. Warranties and Agreements of the Authority. The Authority represents, warrants and covenants to and agrees with the Underwriter that: (a) The District is duly organized and validly existing as a community facilities district under the laws of the State of California (the "State") and the Authority has, and at the Closing Date will have, as the case may be, full legal right, power and authority for and on behalf of the District (i) to adopt the Procedural Resolutions (as defined below) and the Ordinance, (ii) to execute and deliver the Bonds and the District Documents (as defined below) and to perform its obligations under the Bonds and the District Documents, (iii) to issue, sell and deliver the Bonds to the Underwriter pursuant to the Procedural Resolutions and the Fiscal Agent Agreement as provided herein, and (iv) to carry out, give effect to and consummate the transactions on its part contemplated by the Procedural Resolutions, the Official Statement, the Bonds and the District Documents. For purposes of this Bond Purchase Agreement, Resolution No. TPFA 03-20 adopted by the Board on October 22, 2003 stating the intention to establish the District, Resolution No. TPFA 03-21 adopted by the Board on October 22, 2003 stating the intention to incur bonded indebtedness, Resolution No. TPFA 03-27 adopted by the Board on November 25, 2003 establishing the District and authorizing the levy of the Special Tax within the District, Resolution No. TPFA 03-28 adopted by the Board on November 25, 2003 declaring the necessity to incur bonded indebtedness, Resolution No. TPFA 03-29 adopted by the Board on November 25, 2003 calling for a special election in the District, Resolution No. TPFA 03-30 adopted by the Board on November 25, 2003 declaring the results of the election, and Resolution No. TPFA 04-_ adopted by the Board on August 10, 2004 authorizing the issuance of the Bonds are referred to as the "Procedural Resolutions" and the Fiscal Agent Agreement, the Bond Purchase Agreement, the District Continuing Disclosure Agreement (the "District Continuing Disclosure Agreement"), dated as of August 1, 2004, by and between the Authority for and on behalf of the District and U.S. Bank National Association, as dissemination agent (the "Dissemination Agent"), the Acquisition Agreement dated August 1, 2002 as supplemented by Supplement No. 1 dated November 25, 2003 (collectively, the "Acquisition Agreement"), by and between the Authority and Harveston, LLC, a Delaware limited liability company ("Harveston, LLC"), and the Joint Community Facilities Agreement (the "Joint Community Facilities Agreement"), dated as of March 5, 2002, by and between the Authority and the City of Temecula (the "City") (the Continuing Disclosure Agreement, the Acquisition Agreement and the Joint community Facilities Agreement are referred to herein as the "District Documents"); (b) The Authority has complied, and will at the Closing Date be in compliance, in all respects material to issuance and delivery of the Bonds with the Bonds, the District Documents and the Act and the Authority will continue to comply with the covenants of the Authority contained in the Bonds and the District Documents; (c) The Board for and on behalf of the District has duly and validly: (i) adopted the Procedural Resolutions and the Ordinance, (ii) called, held and conducted in accordance with all requirements of the Act an election to approve the levy of the Special Tax, (iii) authorized the preparation and delivery of the Preliminary Official Statement and the Official Statement, (iv) authorized and approved the execution and delivery of the Bonds and the District Documents; and (v) authorized and approved the performance by the Authority of its obligations contained in, and the taking of any and all action on its part as may be necessary to carry out, give effect to and consummate the transactions on its part contemplated by, each of said documents (including, without limitation, the levy and collection of the Special Tax and the use of the proceeds of the Bonds to acquire public improvements), and at the Closing Date the Bonds and the District Documents have been, or on or before the Closing Date, will be duly executed and delivered by the Authority and on the Closing Date, the Bonds and the District Documents will constitute the valid, legal and binding obligations ofthe Authority on behalf of the District, and (assuming due authorization, execution and delivery by other parties thereto, where necessary of the other parties thereto) will be enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors' rights in general and to the application of equitable principles if equitable remedies are sought; (d) The Authority is not in breach of or default under any applicable law or administrative rule or regulation of the State or the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, fiscal agent agreement, contract, agreement or other instrument to which the Authority is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the performance by the Authority of its obligations under the Procedural Resolutions, the Ordinance, the Bonds or the District Documents and compliance with the provisions of each thereof, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, or of any department, division, agency or instrumentality thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, fiscal agent agreement, contract, agreement or other instrument to which the Authority is a party or is otherwise subject or bound a consequence of which could be to materially and adversely affect the ability of the Authority to perform its obligations under the Bonds or any District Documents; (e) The adoption of the Procedural Resolutions and the Ordinance, and the execution and delivery by the Authority of the Bonds, the Official Statement and the District Documents and compliance by the Authority with the provisions thereof, did not and will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State or the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, fiscal agent agreement, contract, agreement or other instrument to which the Authority is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Authority to perform its obligations under the Bonds or any of the District Documents; (f) All approvals, consents, authorizations, elections and orders of or filings or registrations with any State governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the ability of the Authority to execute and deliver and perform its obligations under the Bonds or the District Documents have been or will be obtained and are in full force and effect, except that the Authority provides no representation regarding compliance with "Blue Sky" or other securities laws or regulations whatsoever; (g) The Bonds, the Procedural Resolutions, the Ordinance and the District Documents conform as to form and tenor to the descriptions thereof contained in the Preliminary Official Statement, and which will be contained in the Official Statement as of the Closing Date, and when delivered to and paid for by the Underwriter on the Closing Date as provided herein, the Bonds will be validly issued and outstanding; (h) The Special Tax constituting the security for the Bonds has been duly and lawfully authorized and may be levied under the Act and the Constitution and the applicable laws of the State, and such Special Tax, when levied, will constitute a valid lien on the properties on which it has been levied; (i) Except as described in the Official Statement under the captions "PROPERTY OWNERSHIP — Direct and Overlapping Debt," " — Overlapping Community Facilities and Assessment Districts" and " — Other Overlapping Direct Assessments," there are no outstanding assessment liens or special tax liens levied by the Authority for itself or on behalf of any community facilities district or assessment district against any of the properties within the District which are senior to the Special Tax lien referred to in paragraph l(a) hereof, and the Authority has no present intention of conducting further proceedings leading to the levying of additional special taxes or assessments against any of the properties within the District; 0) As of the datethereof, the Preliminary Official Statement (excluding the information under the captions of "PROPERTY OWNERSHIP — Lennar Optionees; LEN-Inland, LLC," " — The Development Plan" "— William Lyon Homes, Inc." and "— PLC Harveston, LLC; Christopher Homes, Inc." with respect to Harveston, LLC, LEN-Inland, LLC, and the Merchant Builders as to which the Authority and the District shall not be required to express any view) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; the Official Statement (excluding the information under the captions of "PROPERTY OWNERSHIP — Lennar Optionees; LEN- Inland, LLC," "— The Development Plan," " — William Lyon Homes, Inc.," and "— PLC Harveston, LLC Christopher Homes, Inc." with respect to Harveston, LLC, LEN-Inland, LLC, and the Merchant Builders, as to which the Authority and the District shall not be required to express any view) does not and, as of the Closing Date, will not contain any untrue or misleading statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (k) After the Closing Date and until the date which is twenty-five (25) days after the underwriting period (as defined below) (i) the Authority will not adopt any amendment of or supplement to the Official Statement to which the Underwriter shall object in writing or which shall be disapproved by counsel for the Underwriter, and (ii) if any event shall occur of which the Authority is aware, as a result of which it is necessary, in the reasonable opinion of counsel for the Underwriter, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to an initial purchaser of the Bonds, the Authority will forthwith prepare and furnish to the Underwriter a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to counsel for the Underwriter) which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to an initial purchaser of the Bonds, not misleading. The costs of preparing any necessary amendment or supplement to the Official Statement shall be borne by the District. The term "end of the underwriting period" means the later of such time as (i) the Authority delivers the Bonds to the Underwriter or (ii) the Underwriter does not retain an unsold balance of the Bonds for sale to the public. Unless the Underwriter gives notice to the contrary, the "end of the underwriting period" shall be deemed to be the Closing Date. Any notice delivered pursuant to this provision shall be written notice delivered to the Authority at or prior to the Closing Date, and shall specify a date (other than the Closing Date) to be deemed the "end of the underwriting period;" (1) The Fiscal Agent Agreement creates a valid pledge of the Special Tax Revenues and any other amounts (including proceeds of the sale of the Bonds) held in the Bond Fund and the Special Tax Fund established pursuant to the Fiscal Agent Agreement, subject in all cases to the provisions of the Fiscal Agent Agreement permitting the application thereof for the purposes and on the terms and conditions set forth therein; (m) No action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending against the Authority with respect to which the Authority has been served with process, or to the knowledge of the Authority threatened, affecting the existence of the Authority or the District or the titles of its officers to their respective offices (i) which would materially adversely affect the ability of the Authority to perform its obligations under the Bonds or the District Documents, or (ii) seeking to restrain or to enjoin the development of the land within the District, the issuance, sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application of the Special Tax pledged or to be pledged to pay the principal of and interest on the Bonds, or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Bonds, the District Documents, any other instruments relating to the development of any of the property within the District, or any action of the Authority contemplated by any of said documents, or (iii) in any way contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or the powers or authority of the Authority with respect to the Procedural Resolutions, the Ordinance, the Bonds or the District Documents, or any action of the Authority contemplated by any of said documents; or (iv) which alleges that interest on the Bonds is not excludable from gross income for federal income tax purposes or is not exempt from State personal income taxation, nor to the knowledge of the Authority is there any basis therefor; (n) The Authority will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order for the Underwriter to qualify the Bonds for offer and sale under the "Blue Sky" or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate; provided, however, the Authority shall not be required to register as a dealer or a broker of securities nor shall the Authority be required to consent to service of process or jurisdiction or qualify to do business in any jurisdiction or to expend funds for this purpose; (o) Any certificate signed by any official of the Authority authorized to do so and delivered by the Authority at the Closing shall be deemed a certification to the Underwriter by the Authority as to the statements made therein; (p) During the period from the date hereof until the Closing Date, the Authority agrees to furnish the Underwriter with copies of any documents it files with any regulatory authority which are requested by the Underwriter; (q) The Authority is not in default, nor has the Authority been in default at any time, as to the payment of principal or interest with respect to an obligation issued by the Authority or with respect to an obligation guaranteed by the Authority as guarantor; (r) The Authority will apply the proceeds from the sale of the Bonds as set forth in and for the purposes specified in the Fiscal Agent Agreement; (s) The Authority will undertake, pursuant to the Fiscal Agent Agreement and the District Continuing Disclosure Agreement to provide certain annual financial information and information about the District, together with notices of the occurrence of certain events, if material. A copy of the District Continuing Disclosure Agreement is set forth in Appendix F of the Preliminary Official Statement and will also be set forth in the Official Statement, and the specific nature of the information to be contained in the Annual Report (as defined in the District Continuing Disclosure Agreement) or the notices of material events is set forth in the District Continuing Disclosure Agreement; (t) The Preliminary Official Statement heretofore delivered to the Underwriter was, and hereby is, expressly deemed final by the Authority as of its date, except for the omission of such information as is permitted to be omitted in accordance with paragraph (b)(1) of Section 240.15c2-12 in Chapter 11 of Title 17 of the Code of Federal Regulations ("Rule 15c2-12"). The Authority hereby covenants and agrees that, within seven (7) business days from the date hereof, or upon reasonable written notice from the Underwriter within sufficient time to accompany any conformation requesting payment from any customers of the Underwriter, the Authority shall cause a final printed form of the Official Statement to be delivered to the Underwriter in sufficient quantity specified by the Underwriter to comply with paragraph (b)(4) of Rule 15c2- 12 and Rules G-12, G-15, G-32 and G-36 of the Municipal Securities Rulemaking Board; (u) The District has not failed to comply with any continuing disclosure undertaking previously entered into in connection with the provisions of Rule 15c2-12(b)(5); and (v) Except as disclosed in the Official Statement, the Authority and the City have not failed to comply with any continuing disclosure undertaking previously entered into for itself or on behalf of another entity, in connection with the provisions of Rule 15c2-12(b)(5). 3. Conditions to the Obligations ofthe Underwriter. The obligations ofthe Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and warranties on the part of the Authority contained herein, as of the date hereof and as of the Closing Date, to the accuracy in all material respects ofthe statements of the officers and other officials of the Authority made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the Authority of its obligations to be performed hereunder at or prior to the Closing Date and to the following additional conditions: (a) At the Closing Date, the Procedural Resolutions, the Ordinance, the Bonds, the District Documents, and any other applicable agreements, shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the transactions contemplated thereby and by this Bond Purchase Agreement, all such actions as, in the opinion of Quint & Thimmig LLP, San Francisco, California ("Bond Counsel'), shall be necessary and appropriate. (b) At the Closing Date, the Official Statement shall be in form and substance satisfactory to the Underwriter and the Authority and shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (c) Between the date hereof and the Closing Date, the market price or marketability of the Bonds at the initial offering prices set forth in the Official Statement shall not have been materially adversely affected, in the reasonable judgment of the Underwriter (evidenced by a written notice to the Authority terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds), by reason of any of the following: (1) legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America or recommended to the Congress by the President of the United States, the Department of the Treasury, the Internal Revenue Service, or any member of Congress, or favorably reported for passage to either House of Congress by any committee of such House to which such legislation had been referred for consideration or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department or the Internal Revenue Service of the United States of America, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest as would be received by the owners of the Bonds beyond the extent to which such interest is subject to taxation as of the date hereof, (2) legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Fiscal Agent Agreement is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bonds, or of the Bonds, including any or all underwriting arrangements, as contemplated hereby or by the Official Statement or otherwise is or would be in violation of the federal securities laws as amended and then in effect; (3) a general suspension of trading in securities on the New York Stock Exchange, or a general banking moratorium declared by Federal, State ofNew York or State officials authorized to do so; (4) any amendment to the federal or State Constitution or action by any federal or State court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the Authority or the District, its property, income, securities (or interest thereon) or the validity or enforceability of the Special Tax; (5) any event occurring, or information becoming known, which, in the reasonable judgment of the Underwriter, makes untrue in any material respect any statement or information contained in the Official Statement, or results in the Official Statement containing any untrue or misleading statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (6) the entry of an order by a court of competent jurisdiction which enjoins or restrains the City from issuing permits, licenses or entitlements within the District, which order, in the reasonable opinion of the Underwriter, materially and adversely affects proposed developments within the District in particular or the City in general; (7) any legislation, ordinance, rule or regulation shall be introduced in, or be enacted by any governmental body, department or agency of the State or a decision by any court of competent jurisdiction within the State or any court of the United States shall be rendered which, in the reasonable opinion ofthe Underwriter, materially adversely affects the market price ofthe Bonds; (8) additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any governmental authority or by any national securities exchange which restrictions materially adversely affect the Underwriter's ability to market the Bonds; or (9) the United States has become engaged in hostilities which have resulted in a declaration of war or a national emergency or there has occurred any other outbreak or escalation of hostilities or a national or international calamity or crisis, financial or otherwise, the effect of such outbreak, calamity or crisis on the financial markets of the United States, being such as, in the reasonable opinion of the Underwriter, would affect materially and adversely the ability of the Underwriter to market the Bonds. (d) On or priorto the Closing Date, the Underwriter shall have received two counterpart originals or certified copies of each of the following documents, in each case satisfactory in form and substance to the Underwriter: (1) The Procedural Resolutions and the Ordinance, together with a certificate dated as of the Closing Date of the Secretary of the Board to the effect that each is a true, correct and complete copy of the one duly adopted by the Board; (2) An executed copy of the Fiscal Agent Agreement; (3) An executed copy of this Bond Purchase Agreement; (4) An executed copy of the Official Statement; (5) An executed copy of the District Continuing Disclosure Agreement; (6) An executed copy of the Acquisition Agreement and Supplement No. 1 to the Acquisition Agreement; (7) An executed copy of the Joint Community Facilities Agreement; (8) An approving opinion, dated the Closing Date and addressed to the Authority, of Bond Counsel for the Authority, in the form attached to the Official Statement as Appendix H and a letter, dated the Closing Date and addressed to the Underwriter, to the effect that such opinion addressed to the Authority may be relied upon by the Underwriter to the same extent as if such opinion was addressed to it; (9) A supplemental opinion, dated the Closing Date and addressed to the Underwriter of Bond Counsel to the effect that (i) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended and the Fiscal Agent Agreement is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended; (ii) the Bond Purchase Agreement has been duly authorized, executed and delivered by the Authority, and (assuming the due authorization, execution and delivery by, and validity against, the Underwriter) is a valid and binding agreement of the Authority enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, moratorium, insolvency or other laws affecting creditor's rights or remedies and is subject to general principles of equity (regardless of whether such enforceability is considered in equity or at law); (iii) the statements contained in the Official Statement on the cover page and under the captions "INTRODUCTION — Sources of Payment for the Series 2004 Bonds," "INTRODUCTION — Tax Exemption," "THE SERIES 2004 BONDS," "SECURITY FOR THE SERIES 2004 BONDS," "LEGAL MATTERS — Tax Exemption," APPENDIX E — "Summary of Certain Provisions of the Fiscal Agent Agreement" and APPENDIX H — "Form of Opinion of Bond Counsel" are accurate insofar as such statements expressly summarize certain provisions of the Bonds, the Fiscal Agent Agreement and such firm's opinion concerning certain federal tax matters relating to the Bonds and (iv) the District is duly formed as a community facilities district under the Act; (10) An opinion, dated the Closing Date and addressed to the District and the Underwriter of McFarlin & Anderson LLP, Disclosure Counsel, to the effect that without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Official Statement, but on the basis of their participation in conferences with representatives of the District, Bond Counsel, Richards, Watson & Gershon , Fieldman Rolapp & Associates, as financial advisor, Stone & Youngberg LLC, as underwriter, Pillsbury Winthrop LLP, as counsel to Harveston, LLC, and as counsel to the Lennar Optionees, representatives ofHarveston, LLC, the Lennar Optionees, and others, and their examination of certain documents, no facts have come to their attention which would lead them to believe that the Official Statement as of its date and as of the Closing Date contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (except that no opinion or belief need be expressed as to any financial, statistical, economic, engineering, or demographic data or forecasts, numbers, charts, tables, graphs, maps, estimates, projections, assumptions or expressions of opinion, or any information about feasibility, valuation, appraisals, market absorption, real estate, archaeological, or environmental matters, the Appendices to the Official Statement or any information about debt service requirements, book -entry, The Depository Trust Company, or tax exemption contained in the Official Statement); (11) An opinion, dated the Closing Date and addressed to the Underwriter, of the City Attorney, as counsel to the Authority and to the District, to the effect that: (i) The Authority is duly organized and validly existing under the Constitution and laws of the State of California; (ii) The District is duly organized and validly existing as a community facilities district under the laws of the State, with full legal right, power and authority to issue the Bonds and to perform all of its obligations under the Bonds and the District Documents; (iii) To the best of such counsel's knowledge, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending or threatened against the Authority or the District affecting the existence of the Authority or the District or the title of their officers to their respective offices, or which would materially adversely affect the ability of the Authority to perform its obligations hereunder or under the Bonds or the District Documents or seeking to restrain or to enjoin the development of property within the District, the issuance, sale, or delivery of the Bonds or the exclusion from gross income for federal income tax purposes or State personal income taxes of interest on the Bonds, or the application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application of the Special Tax to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds or the District Documents or any action of the Authority contemplated by any of said documents orthe accuracy or completeness of the Preliminary Official Statement or the Official Statement; (iv) The Board on behalf of the District has duly and validly adopted the Procedural Resolutions and the Ordinance at meetings of the Board which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting at the time of adoption, and the Procedural Resolutions and the Ordinance are now in full force and effect and have not been amended; (v) To the best of such counsel's knowledge, the Authority and the District are not in breach of or in default under any applicable law or administrative rule or regulation of the State or the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, fiscal agent agreement, contract, agreement or other instrument to which the Authority or the District is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Authority or the District to perform their obligations under the Procedural Resolutions, the Ordinance, the Bonds or any District Documents or which, with the passage of time or the giving of notice or both, would constitute an event of default thereunder; (vi) The adoption of the Procedural Resolutions and the Ordinance, and the execution and delivery of the Bonds and the District Documents, and compliance with the provisions of each, did not and will not conflict with or constitute a breach of or default under any applicable court or administrative decree or order, or under any loan agreement, note, ordinance, resolution, indenture, fiscal agent agreement, contract, agreement or other instrument to which the Authority or the District is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Authority to perform its obligations under the Bonds or any District Documents; and (vii) Without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Official Statement, but on the basis of their participation in conferences with representatives of the Authority, the District, Bond Counsel, Disclosure Counsel, 10 representatives of the Underwriter, Harveston, LLC, the Lennar Optionees and others, and their examination of certain documents, no information has come to their attention which would lead them to believe that the information with respect to the Authority and the District in the Official Statement, as of its date and as of the Closing Date, contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (except that no opinion or belief need be expressed as to any Appendix to the Official Statement or any other financial, statistical or economic data or forecasts, numbers, charts, graphs, estimates, projections, assumptions or expressions of opinion, or any information about valuation or appraisals, or any information about Harveston, LLC, LEN-Inland, LLC, the Lennar Optionees, William Lyon Homes, Inc., PLC Harveston, LLC, the book -entry or DTC contained in the Official Statement); (12) A Certificate, dated the Closing Date and signed by an authorized representative of the Authority, certifying that (i) the representations and warranties of the Authority contained in this Bond Purchase Agreement are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) no event has occurred since the date of the Official Statement affecting the matters contained therein which should be disclosed in the Official Statement for the purposes for which it is to be used in order to make the statements and information contained in the Official Statement with respect to the Authority or the District not misleading in any material respect; (iii) the Authority has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied under the Bonds and the District Documents at or prior to the Closing Date in order to issue the Bonds; (13) A certificate of the Authority, in a form acceptable to Bond Counsel, containing the Authority's reasonable expectations in support of the conclusion that the Bonds are not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended; (14) An opinion of counsel to the Fiscal Agent, dated the Closing Date, addressed to the Underwriter, in form and substance satisfactory to the Underwriter, to the effect that: (i) The Fiscal Agent is anational banking association, organized and existing under and by virtue of the laws of the United States of America; (ii) The Fiscal Agent has duly authorized the execution and delivery of the Fiscal Agent Agreement and the Continuing Disclosure Agreements (as defined below); (iii) The Fiscal Agent Agreement and the Continuing Disclosure Agreements have been duly entered into and delivered by the Fiscal Agent and assuming due, valid and binding authorization, execution and delivery by the other parties thereto, constitute the legal, valid and binding obligations of the Fiscal Agent enforceable against the Fiscal Agent in accordance with their terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights generally, or by general principles of equity; (iv) Acceptance by the Fiscal Agent of the duties and obligations under the Fiscal Agent Agreement, and the Continuing Disclosure Agreements and compliance with provisions thereof will not conflict with or constitute a breach of or default under any law or administrative regulation, court decree, resolution, charter, by-laws, agreement, instrument or commitment to which the Fiscal Agent is subject; (v) All approvals, consents and orders of any governmental authority or agency having jurisdiction in the matter which would constitute a condition precedent to the performance by the Fiscal Agent of its duties and obligations under the Fiscal Agent Agreement, and the Continuing Disclosure Agreements have been obtained and are in full force and effect; (vi) To such counsel's knowledge, there is no litigation pending or threatened against or affecting the Fiscal Agent to restrain or enjoin the Fiscal Agent's participation in, or in any way contesting the powers of the Fiscal Agent with respect to the transactions contemplated by the Bonds or the Fiscal Agent Agreement; and (vii) To such counsel's knowledge, there is no litigation pending or threatened against or affecting the Fiscal Agent to restrain or enjoin the Fiscal Agent's participation in, or in any way contesting the powers of the Fiscal Agent with respect to the transactions contemplated by the Bonds, or the Fiscal Agent Agreement; (15) A certificate of the Fiscal Agent, dated the Closing Date, in form and substance acceptable to counsel for the Underwriter, to the following effect: (i) The Fiscal Agent is a national banking association, and is organized and existing under and by virtue of the laws of the United States of America, and has the full power and authority to accept and perform its duties under the Fiscal Agent Agreement, and the Continuing Disclosure Agreements; (ii) Subject to the provisions of the Fiscal Agent Agreement, the Fiscal Agent will apply the proceeds from the Bonds to the purposes specified in the Fiscal Agent Agreement; (iii) The Bonds have been duly and validly authenticated on behalf of Fiscal Agent; (iv) No consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Fiscal Agent that has not been obtained is or will be required for the authentication of the Bonds or the consummation by the Fiscal Agent of the other transactions contemplated to be performed by the Fiscal Agent in connection with the authentication of the Bonds and the acceptance and performance of the obligations created by the Fiscal Agent Agreement; (v) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body pending or, to the best of its knowledge, threatened in any way affecting the existence of the Fiscal Agent, or seeking to restrain or to enjoin the execution and delivery of the Fiscal Agent Agreement, or the Continuing Disclosure Agreements, or the authentication of the Bonds, by the Fiscal Agent, or in any way contesting or affecting the validity or enforceability, as against the Fiscal Agent, of the Fiscal Agent Agreement, or the Continuing Disclosure Agreements or any action of the Fiscal Agent contemplated by any of said documents, or in which an adverse outcome would materially and adversely affect the ability of the Fiscal Agent to perform its obligations under the Fiscal Agent Agreement, or the Continuing Disclosure Agreements; (vi) The Fiscal Agent is not in breach of or in default under any applicable law or administrative rule or regulation of the State or the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, fiscal agent agreement, Ira contract, agreement or other instrument to which the Fiscal Agent is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Fiscal Agent to perform its obligations under the Fiscal Agent Agreement, or the Continuing Disclosure Agreements; and (vii) The authentication of the Bonds, and the execution and delivery of the Fiscal Agent Agreement, and the Continuing Disclosure Agreements by the Fiscal Agent, and compliance with the provisions of each, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State or the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, ordinance, resolution, indenture, fiscal agent agreement, contract, agreement or other instrument to which the Fiscal Agent is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Fiscal Agent to perform its obligations under the Fiscal Agent Agreement, or the Continuing Disclosure Agreements; (16) Certificates dated the date of the Preliminary Official Statement from Harveston, LLC and the Merchant Builders (as defined in the Official Statement), together with bring -down certificates dated the Closing Date in substantially the forms attached hereto in Exhibits B and C; (17) Good standing certificates for Harveston, LLC and the Lennar Optionees from appropriate officials of the Secretary of State of the State of California and from the Franchise Tax Board of the State of California; (18) An executed copy of the Continuing Disclosure Agreements (the "Continuing Disclosure Agreements") dated as of August 1, 2004, by and between the Authority or Harveston, LLC and the Lennar Optionees, and U.S. Bank National Association, in its capacity as the Dissemination Agent and the Fiscal Agent; (19) An opinion, dated the Closing Date, addressed to the City and the Underwriter of Pillsbury Winthrop LLP, counsel on behalf of Harveston, LLC and the Lennar Optionees, in substantially the form attached hereto as Exhibit D; (20) The certificates dated on or before the Closing Date of the lenders to Harveston, LLC, or the Lennar Optionees, if any, which has a loan secured by property within the District in substantially the form attached hereto as Exhibit E or other evidence provided by Harveston, LLC, the Lennar Optionees or a lender that there is no event of default under the loan agreement(s) at this time and acknowledging the priority position of the lien of Special Taxes relative to such lender's security for the loan; (21) Certificate of the Bank in form and substance acceptable to Disclosure Counsel and the Underwriter; (22) A certificate from Albert A. Webb Associates to the effect that (i) if the Special Tax is levied in accordance with the terms as set forth in the Rate and Method of Apportionment of Special Tax of the District and collected, the amount of the levy will be sufficient to make timely payments of debt service and estimated annual administrative expenses on the Bonds, provided that acreage and number of units supplied by the District and by Harveston, LLC, the Merchant Builders, or by any of their agents, which has been relied upon by Albert A. Webb 13 Associates is true and correct (no representation need be made as to the actual amounts that will be collected in future years), (ii) the amount of the maximum Special Taxes that may be levied in each Fiscal Year is at least 110% of the annual debt service for the Bonds for each such Fiscal Year, assuming that the net taxable acreage and projected development figures provided to AlbertA. Webb Associates by Harveston, LLC and the Lennar Optionees are true and correct, (iii) the description of the Rate and Method of Apportionment of the Special Taxes contained in the section captioned "SECURITY FOR THE SERIES 2004 BONDS — Special Taxes," and in Appendix B is correctly presented in all material respects and (iv) that, as of the dates of the Preliminary Official Statement and the Official Statement the information contained in those portions of the Official Statement entitled "INTRODUCTION — The Community Facilities District," "INTRODUCTION — Sources of Payment for the Series 2004 Bonds," "SECURITY FOR THE SERIES 2004 BONDS — Special Taxes," "SECURITY FOR THE SERIES 2004 BONDS — Rate and Method," "PROPERTY OWNERSHIP —Direct and Overlapping Debt," "PROPERTY OWNERSHIP —Estimated Value -to - Lien Ratios and Estimated Special Tax Allocation by Property Ownership," "PROPERTY OWNERSHIP —Overlapping Community Facilities and Assessment Districts," `BONDOWNERS' RISKS— Levy and Collection of the Special Tax," `BONDOWNERS' RISKS —Exempt Properties," and in the Tables of the Official Statement captioned "Table 5 — Temecula Public Financing Authority Community Facilities District No. 03-06 Secured Property Tax Roll and Direct and Overlapping Debt," "Table 6—Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston I1) Value -to -Lien Analysis Allocation Based on Undeveloped Property Special Tax (As of June 1, 2004 Appraisal Date of Value) and"Table 7 - Temecula Public Financing Authority Community Facilities DistrictNo. 03-06 (Harveston II) Value to Lien Analysis Allocation Based on Projected Buildout" and "Appendix B" and the other data provided by the Special Tax Consultant and included in the Official Statement, do not, to my knowledge, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; (23) (i) The final appraisal report with a date of value of June 1, 2004 (the "Appraisal Report") of Stephen G. White, MAI (the "Appraiser") setting forth appraised values of land within the District at not less than the appraised values set forth in the Official Statement, and (ii) a certificate of the Appraiser in substantially the form of Exhibit F hereto, dated the Closing Date and addressed to the Underwriter, the Authority and the Community Facilities District; (24) A certificate of the Market Absorption Consultant in substantially the form of Exhibit G hereto, dated the Closing Date and addressed to the Underwriter, the Authority and the Communities Facilities District. (25) A conformed or certified copy of the Notice of Special Tax Lien recorded on December 11, 2003, as Document No. 2003-970556 with the County Recorder; (26) Certified copies of proceedings relating to formation of the District, including a copy of the Procedural Resolutions and Ordinance No. TPFA 2003-02, adopted on November 25, 2003, levying the special taxes in accordance with the Rate and Method of Apportionment of Special Taxes; (27) Evidence that the federal tax information Form 8038-G has been prepared for filing; (28) Copies of filings with the California Debt and Investment Advisory Commission relating to the issuance of the Bonds; and 14 (29) Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the statements and information contained in the Preliminary Official Statement and the Official Statement, of the Authority's representations and warranties contained herein and the due performance or satisfaction by the Authority at or prior to the Closing Date of all agreements then to be performed and all conditions then to be satisfied by the Authority in connection with the transactions contemplated hereby and by the Procedural Resolutions and the Official Statement. (e) At the time of the Closing, no default shall have occurred or be existing under this Purchase Agreement, the Fiscal Agent Agreement or the District Documents and the Authority and the District shall not be in default in the payment of principal or interest on any of its bonded indebtedness which default shall adversely impact the ability of the Authority or the District to make payment on the Bonds. (f) If the Authority shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds contained in this Bond Purchase Agreement, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds shall be terminated for any reason permitted by this Bond Purchase Agreement, this Bond Purchase Agreement shall terminate and neither the Underwriter nor the Authority shall be under any further obligation hereunder, except that the respective obligations of the Authority and the Underwriter set forth in Section 4 hereof shall continue in full force and effect. 4. Expenses. Whether or not the Bonds are delivered to the Underwriter as set forth herein: (a) The Underwriter shall be under no obligation to pay, and the Authority shall pay or cause to be paid (out of any legally available funds of the Authority relating to the District) all expenses incident to the performance of the Authority's and the District's obligations hereunder, including, but not limited to, the cost of printing and delivering the Bonds to the Underwriter, the cost of preparation, printing (and/or word processing and reproduction), distribution and delivery of the Fiscal Agent Agreement, the Procedural Resolutions, the Ordinance, the Preliminary Official Statement, the Official Statement and all other agreements and documents contemplated hereby (and drafts of any thereof) in such reasonable quantities as requested by the Underwriter; the fees and expenses in connection with obtaining a delinquency report and statement of direct and overlapping bonded debt from Albert A. Webb Associates; and the fees and disbursements of the Fiscal Agent for the Bonds, Bond Counsel, Disclosure Counsel and any market absorption consultants, accountants, financial advisors, engineers or any other experts or consultants the Authority has retained in connection with the Bonds and any out-of-pocket disbursements of the Authority to be paid from the proceeds of the Bonds; and (b) The Authority shall be under no obligation to pay, and the Underwriter shall pay, the cost of preparation of any "Blue Sky" or legal investment memoranda; expenses to qualify the Bonds for sale under any "Blue Sky" or other state securities laws, the fees, if any, payable to the California Debt and Investment Advisory Commission on account of the Bonds; CUSIP Service Bureau fees; and all other expenses incurred by the Underwriter in connection with its public offering and distribution of the Bonds (except those specifically enumerated in paragraph (a) of this section), including any advertising expenses. 5. Notices. Any notice or other communication to be given to the Authority under this Bond Purchase Agreement may be given by delivering the same in writing to the Temecula Public Financing Authority, 43200 Business Park Drive, Temecula, California 92590 Attention: Director of Finance; and any 15 notice or other communication to be given to the Underwriter under this Bond Purchase Agreement may be given by delivering the same in writing to Stone & Youngberg LLC, 515 South Figueroa Street, Suite 1060, Los Angeles, California 90071, Attention: Municipal Finance Department; provided, however, that all such notices, requests or other communications may be made by telephone and promptly confirmed by writing. The Authority and the Underwriter may, by notice given as aforesaid, specify a different address for any such notices, request or other communications. 6. Parties in Interest. This Bond Purchase Agreement is made solely for the benefit of the Authority and the Underwriter (including their successors or assigns), and no other person shall acquire or have any right hereunder or by virtue hereof. 7. Survival of Representations and Warranties. The representations and warranties of the Authority set forth in or made pursuant to this Bond Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Bond Purchase Agreement and regardless of any investigations made by or on behalf of the Underwriter (or statements as to the results of such investigations) concerning such representations and statements of the Authority and regardless of delivery of and payment for the Bonds. 8. Effective. This Bond Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Authority and shall be valid and enforceable as of the time of such acceptance. 9. _Applicable Law: Nonassianability. This Bond Purchase Agreement shall be governed by the laws of the State. This Bond Purchase Agreement shall not be assigned by the Authority or the Underwriter. 10. Execution of Counterparts. This Bond Purchase Agreement may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the same. IL No Prior Agreements. This Bond Purchase Agreement supersedes and replaces all prior negotiations, agreements and understandings between the parties hereto in relation to the sale of Bonds by the Authority and represents the entire agreement of the parties as to the subject matter herein. 12. Partial Unenforceability. Any provision of this Bond Purchase Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Bond Purchase Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 16 13. Capitalized Terns. Terms with initial capital letters not otherwise defined herein shall have the meanings assigned to them in the Fiscal Agent Agreement or the Official Statement. Very truly yours, STONE & YOUNGBERG LLC M ACCEPTED: August_, 2004 TEMECULA PUBLIC FINANCING AUTHORITY FOR AND ON BEHALF OF THE TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON 11) Un 17 EXHIBIT A TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON I1) SPECIAL TAX BONDS, SERIES 2004 MATURITY SCHEDULE Maturity Date Principal Interest (September 1) Amount Rate Yield Serial Bonds: 9/1/2005 $ % % 9/1/2006 9/1/2007 9/1/2008 9/1/2009 9/1/2010 9/1/2011 9/1/2012 9/1/2013 9/I/2014 9/1/2015 9/1/2016 9/1/2017 9/1/2018 9/1/2019 9/1/2020 9/1/2021 9/1/2022 9/l/20_ Term Bonds: 9/1/20 Term Bonds.- 9/ l /2034 Total Issue $ Price The purchase price of the Bonds shall be $ (which is the principal amount thereof $ less a net original issue discount of $ and less the Underwriter's discount of $ ). In addition, no accrued interest will be paid with respect to the Bonds because the Bonds are dated the closing date. �J EXHIBIT B [See separate document] EXHIBIT C [See separate document] B&C-1 Supplemental Material For TPFA Authority Business Item No. 2 (CFD - Harveston II) Exhibit B - Bond Purchase Agreement TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CERTIFICATE OF WILLIAM LYON HOMES, INC. August 11, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston 11) Stone & Youngberg LLC Ladies and Gentlemen: Reference is made to Temecula Public Financing Authority (the "Authority") Community Facilities District No. 03-06 (Harveston 11) (the "District") Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is delivered pursuant to and in satisfaction of Section 3(d)(16) of the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase Agreement. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of William Lyon Homes, Inc., a California corporation ("William Lyon Homes"), and the undersigned, on behalf of William Lyon Homes further certifies as follows: I. William Lyon Homes is duly organized and validly existing under the laws of the State of California, registered to transact intrastate business as a foreign corporation and is in good standing in the State of California and has the corporate power and authority to execute and deliver this Certificate, and to undertake all of the transactions on its part described in the Preliminary Official Statement. 2. As setforth inthe Preliminary Official Statement, certain property within the District is owned by William Lyon Homes and William Lyon Homes will develop such property. The property owned by William Lyon Homes is referred to herein as the "Property." William Lyon Homes' current expectation is that William Lyon Homes shall remain the party responsible for land use planning and backbone infrastructure of the Property. William Lyon Homes has not entered into an agreement for development or management of the Property by any entity other than as described in the Preliminary Official Statement. 3. Except as disclosed in the Preliminary Official Statement, (a) to the Actual Knowledge of the Undersigned', William Lyon Homes and its Affiliates are not in breach of or in default under any applicable law or administrative regulation of the State of California or the United States, or any agency or instrumentality of either, which breach or default would in any way materially and adversely affect the ability of William Lyon Homes to pay its Special Taxes, and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing that with the passage of time or giving of notice, or both, would constitute such a breach or default. "Affiliate" ' As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge that the undersigned currently has or has obtained from an interview with such officers and responsible employees of William Lyon Homes, as the undersigned has determined are likely, in the ordinary course of their respective duties, to have knowledge of the matters set forth herein. Other than as set forth in the immediately preceding sentence, with your permission, the undersigned has not conducted any additional inspection or inquiry. of another Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or holding with power to vote, 15 % or more of the outstanding voting securities of such other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly controlling, controlled by or under common control with such other Person; for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a Person, unless such power is solely the result of an official position with such Person. "Person" means an individual, a corporation, a partnership, an association, ajoint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. 4. Except as disclosed in the Preliminary Official Statement, (a) to the Actual Knowledge of the Undersigned, William Lyon Homes and its Affiliates are not in breach of or in default under any applicable judgment or decree or any loan agreement, option agreement, development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which William Lyon Homes or its Affiliates are, or will upon issuance of the Bonds be, a party or otherwise subject, which breach or default would in any way materially and adversely affect William Lyon Homes' ability to develop the Property or to pay the Special Taxes, and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing that with the passage of time or giving of notice, or both, would constitute a breach or default. 5. Except as described in the Preliminary Official Statement, there are no material loans outstanding and unpaid and no material lines of credit of William Lyon Homes or its Affiliates that are secured by an interest in the Property. 6. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit, action, contingent liability or litigation is pending (with service of process to William Lyon Homes having been accomplished) or, to the Actual Knowledge ofthe Undersigned, threatened(a)to restrain or enjoin collection of Special Taxes or other sums pledged or to be pledged to pay the principal of and interest on the Bonds, or (b) to restrain or enjoin development of the Property. 7. Except as set forth in the Preliminary Official Statement, no litigation is pending with service of process to William Lyon Homes, to the Actual Knowledge of the Undersigned, no litigation is pending with service of process to any Affiliate having been accomplished, and, to the Actual Knowledge of the Undersigned, no litigation is threatened against William Lyon Homes or any Affiliate involving William Lyon Homes or any Affiliate, or any of the property or assets under the control of William Lyon Homes or any Affiliate that involves the possibility of anyjudgment or uninsured liability which may result in any material adverse change in the assets or funds held by William Lyon Homes or any Affiliate that would materially and adversely affect William Lyon Homes' ability to develop the Property or to pay Special Taxes. 8. As ofthe date thereof, but solely with respectto information regarding William Lyon Homes and its Affiliates, the proposed development of the Property, ownership of the Property and William Lyon Homes' development plan, William Lyon Homes' financing plan, William Lyon Homes' lenders, if any, and contractual arrangements involving William Lyon Homes and subject to the exclusions set forth below, the information contained in the Preliminary Official Statement under the captions "INTRODUCTION — The Community Facilities District" (excluding therefrom the first two paragraphs for which no certification is made) and "THE COMMUNITY FACILITIES DISTRICT," and "PROPERTY OWNERSHIP" (excluding therefrom information under the subcaptions "— Direct and Overlapping Debt," "— Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," " — Overlapping Community Facilities and Assessment Districts,"" —Other Overlapping Direct Assessments,"" —Estimated Assessed Value -to - Lien Ratios,"" —Transportation Uniform Mitigation Fee; Multi -Species Habitat Conservation Plan," "— Market Absorption Study," and "—Appraised Property Value" for which no certification is made), is true and correct in all material respects and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 9. William Lyon Homes has full corporate powerand authority to develop the Property, to own any portion ofthe Property it acquires and to carry on its business as presently conducted and as described in the Preliminary Official Statement. 10. William Lyon Homes covenants that, while the Bonds or any refunding obligations related thereto are outstanding, William Lyon Homes will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of Ordinance No. 2003-02 of the Authority levying Special Taxes within the District, to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax lien relating thereto. The foregoing covenant shall not prevent William Lyon Homes in any way from bringing any other action, suit or proceeding including, without limitation, an action or suit contending that the Special Tax has not been levied in accordance with the methodologies contained in the District's Rate and Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an action or suit with respect to the application or use of the Special Taxes levied and collected, or an action or suit to enforce the obligations of the Authority under the Resolution of Issuance, the Fiscal Agent Agreement or any agreements with the Authority, the City and/or the District for which William Lyon Homes is a party or beneficiary. 11. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, no other public debt secured by a tax or assessment on the Property exists or is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed that include any portion of the Property. 12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, William Lyon Homes and its Affiliates have not in the last five years defaulted in payment of, and are not currently delinquent on, any ad valorem, assessment or special tax obligations in California in any material amount. 13. William Lyon Homes consents to the issuance of the Bonds. William Lyon Homes acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official Statement, provided that nothing in this statement modifies any right or obligation of the parties under any other agreement. 14. William Lyon Homes intends to comply with the provision of Government Code Section 53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or portions thereof that it takes title to or develops. 15. William Lyon Homes acknowledges that interest on the Bonds is estimated to be capitalized through September 1, 2005 and that the Special Tax levies on Developed Property will commence in Fiscal Year 2005-06 (commencing with the November 1, 2005 tax installment) in order to pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the District. 16. William Lyon Homes is solvent and no proceedings are pending or, to the Actual Knowledge of the Undersigned, threatened in which William Lyon Homes may be adjudicated as bankrupt or discharged from any and all of its debts or obligations or granted an extension of time to pay its debts or obligations or a reorganization or readjustment of its debts. 17. To the Actual Knowledge of the Undersigned, William Lyon Homes has not filed for, nor are there current proceedings for the reassessment of, the assessed value of the Property. 18. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits, actions or contingent liabilities among William Lyon Homes, its Affiliates or any contractors working on the development of the Property which may materially and adversely affect the development of the Property or the payment of the Special Taxes on the Property. 19. Based uponthe current development plans, including, without limitation, thecurrent budget and subject to economic conditions and risks generally inherent in the development of real property, to the Actual Knowledge of the Undersigned, William Lyon Homes will have sufficient funds to carry on its business as presently conducted and as described in the Preliminary Official Statement and to pay Special Taxes assessed against the Property and neither the Authority nor the District will be required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due to William Lyon Homes' nonpayment of Special Taxes. However, none of William Lyon Homes or its Affiliates are obligated to make any additional capital contribution or loan to William Lyon Homes at any time and William Lyon Homes reserves the right to change its plan at any time without notice. 20. All information submitted in writing by, or on behalf of, William Lyon Homes to the Authority, the District, the Special Tax Consultant, Stephen G. White, MAI (the "Appraiser"), Disclosure Counsel or the Underwriter in connection with the issuance of the Bonds, was, at the time of submission, to the Actual Knowledge of the Undersigned, true and correct. 21. To the Actual Knowledge of the Undersigned, there are no endangered species, hazardous substances or archaeological resources relating to the Property which could have a significant impact on William Lyon Homes' ability to pay Special Taxes or to sell or develop all or any portion of William Lyon Homes' Property. 22. As to information indicated in Section 9 hereof concerning William Lyon Homes, its Affiliates and the development of the Property, and subject to the limitations and exclusions set forth in Section 9, William Lyon Homes agrees to indemnify and hold harmless, to the extent permitted by law, the Authority, the District, and their officials and employees, and each person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims, damages or liabilities, joint or several, to which such indemnified party may become subject under any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for any reasonable legal or other expense incurred by it in connection with investigating any claims against it and defending any actions, insofar as such losses, claims, damages, liabilities or actions arise out of, or are based upon, any untrue statement of a material fact or the omission to state a material fact, in the final Official Statement, as of its date or in any continuing disclosure statement, as of its date, provided by or on behalf of William Lyon Homes, a material fact necessary to make the statement therein, in light of the circumstances under which it was made not misleading. This indemnity provision shall not be construed as a limitation on any other liability which William Lyon Homes may otherwise have to any indemnified party, provided that in no event shall William Lyon Homes be obligated for double indemnification nor for the negligence or wilful misconduct of another. 23. If between the date hereof and the date of the Closing, to the Actual Knowledge of the Undersigned, any event relating to or affecting William Lyon Homes or the development of the Property shall occur which might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, William Lyon Homes shall notify the Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, William Lyon Homes shall cooperate with the Authority in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter. 24. For the "underwriting period," as defined in the Bond Purchase Agreement, if any event relating to or affecting William Lyon Homes or the development of the Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, William Lyon Homes shall cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to the Underwriter and counsel to the Authority which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading. 25. William Lyon Homes agrees to deliver a Certificate dated the date of issuance of the Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit A, provided, that, if any event relating to or affecting William Lyon Homes or the development of the Property shall occur as a result of which it is necessary to modify the Certificate, William Lyon Homes agrees to deliver the Certificate revised to reflect such event. 26. On behalf of William Lyon Homes, I have reviewed the contents of this Certificate and have met with counsel to William Lyon Homes, for the purpose of discussing the meaning of its contents. WILLIAM LYON HOMES, INC., a California corporation an Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CERTIFICATE OF PLC HARVESTON, LLC August 11, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston H) Stone & Youngberg LLC Ladies and Gentlemen Reference is made to Temecula Public Financing Authority (the "Authority") Community Facilities District No. 03-06 (Harveston II) (the "District") Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is delivered pursuant to and in satisfaction of Section 3(d)(16) of the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase Agreement. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of PLC Harveston, LLC, a California limited liability company ("PLC Harveston, LLC"), and the undersigned, on behalf of PLC Harveston, LLC further certifies as follows: 1. PLC Harveston, LLC is duly organized and validly existing under the laws of the State of California, registered to transact intrastate business as a foreign corporation and is in good standing in the State of California and has the corporate power and authority to execute and deliver this Certificate, and to undertake all of the transactions on its part described in the Preliminary Official Statement. 2. Assetforth in the Preliminary Official Statement, certain property within the District is owned by PLC Harveston, LLC and PLC Harveston, LLC will develop such property. The property owned by PLC Harveston, LLC is referred to herein as the "Property." PLC Harveston, LLC' current expectation is that PLC Harveston, LLC shall remain the party responsible for land use planning and backbone infrastructure of the Property. PLC Harveston, LLC has not entered into an agreement for development or management of the Property by any entity other than as described in the Preliminary Official Statement. 3. Except as disclosed in the Preliminary Official Statement, (a) to the Actual Knowledge of the Undersigned', PLC Harveston, LLC and its Affiliates are not in breach of or in default under any applicable law or administrative regulation ofthe State of California or the United States, or any agency or instrumentality of either, which breach or default would in any way materially and adversely affect the ability of PLC Harveston, LLC to pay its Special Taxes, and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing that with the As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge that the undersigned currently has or has obtained from an interview with such officers and responsible employees of PLC Harveston, LLC or the managing members of PLC Harveston, LLC as the undersigned has determined are likely, in the ordinary course of their respective duties, to have knowledge of the matters set forth herein. Other than as set forth in the immediately preceding sentence, with your permission, the undersigned has not conducted any additional inspection or inquiry. passage of time or giving of notice, or both, would constitute such a breach or default. "Affiliate" of another Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or holding with power to vote, 15% or more of the outstanding voting securities of such other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly controlling, controlled by or under common control with such other Person; for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a Person, unless such power is solely the result of an official position with such Person. "Person" means an individual, a corporation, a partnership, an association, ajoint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. 4. Except as disclosed in the Preliminary Official Statement, (a) to the Actual Knowledge of the Undersigned, PLC Harveston, LLC and its Affiliates are not in breach of or in default under any applicable judgment or decree or any loan agreement, option agreement, development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement orother instrument to which PLC Harveston, LLC or its Affiliates are, or will upon issuance of the Bonds be, a party or otherwise subject, which breach or default would in any way materially and adversely affect PLC Harveston, LLC' ability to develop the Property or to pay the Special Taxes, and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing that with the passage of time or giving of notice, or both, would constitute a breach or default. 5. Except as described in the Preliminary Official Statement, there are no material loans outstanding and unpaid and no material lines of credit of PLC Harveston, LLC or its Affiliates that are secured by an interest in the Property. 6. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit, action, contingent liability or litigation is pending (with service of process to PLC Harveston, LLC having been accomplished) or, to the Actual Knowledge ofthe Undersigned, threatened (a) to restrain or enjoin collection of Special Taxes or other sums pledged or to be pledged to pay the principal of and interest on the Bonds, or (b) to restrain or enjoin development of the Property. 7. Except as set forth in the Preliminary Official Statement, no litigation is pending with service of process to PLC Harveston, LLC, to the Actual Knowledge of the Undersigned, no litigation is pending with service of process to any Affiliate having been accomplished, and, to the Actual Knowledge of the Undersigned, no litigation is threatened against PLC Harveston, LLC or any Affiliate involving PLC Harveston, LLC or any Affiliate, or any of the property or assets under the control of PLC Harveston, LLC or any Affiliate that involves the possibility of any judgment or uninsured liability which may result in any material adverse change in the assets or funds held by PLC Harveston, LLC or any Affiliate that would materially and adversely affect PLC Harveston, LLC' ability to develop the Property or to pay Special Taxes. S. As of the date thereof, but solely with respect to information regarding PLC Harveston, LLC and its Affiliates, the proposed development of the Property, ownership of the Property and PLC Harveston, LLC' development plan, PLC Harveston, LLC' financing plan, PLC Harveston, LLC' lenders, if any, and contractual arrangements involving PLC Harveston, LLC and subject to the exclusions set forth below, the information contained in the Preliminary Official Statement under the captions "INTRODUCTION — The Community Facilities District" (excluding therefrom the first two paragraphs for which no certification is made) and "THE COMMUNITY FACILITIES DISTRICT," and "PROPERTY OWNERSHIP" (excluding therefrom information under the subcaptions "— Direct and Overlapping Debt," "— Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," "— Overlapping Community Facilities and Assessment Districts," " — Other Overlapping Direct Assessments," " — Estimated Assessed Value -to -Lien Ratios," " — Transportation Uniform Mitigation Fee; Multi -Species Habitat Conservation Plan," "— Market Absorption Study," and "— Appraised Property Value" for which no certification is made), is true and correct in all material respects and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 9. PLC Harveston, LLC has full corporate power and authority to develop the Property to own any portion of the Property it acquires and to carry on its business as presently conducted and as described in the Preliminary Official Statement. 10. PLC Harveston, LLC covenants that, while the Bonds or any refunding obligations related thereto are outstanding, PLC Harveston, LLC will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of Ordinance No. 2003-02 of the Authority levying Special Taxes within the District, to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax lien relating thereto. The foregoing covenant shall not prevent PLC Harveston, LLC in any way from bringing any other action, suit or proceeding including, without limitation, an action or suit contending that the Special Tax has not been levied in accordance with the methodologies contained in the District's Rate and Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an action or suit with respect to the application or use of the Special Taxes levied and collected, or an action or suit to enforce the obligations of the Authority under the Resolution of Issuance, the Fiscal Agent Agreement or any agreements with the Authority, the City and/or the District for which PLC Harveston, LLC is a party or beneficiary. it. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, no other public debt secured by a tax or assessment on the Property exists or is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed that include any portion of the Property. 12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, PLC Harveston, LLC and its Affiliates have not in the last five years defaulted in payment of, and are not currently delinquent on, any ad valorem, assessment or special tax obligations in California in any material amount. 13. PLC Harveston, LLC consents to the issuance of the Bonds. PLC Harveston, LLC acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official Statement, provided that nothing in this statement modifies any right or obligation of the parties under any other agreement. 14. PLC Harveston, LLC intends to comply with the provision of Government Code Section 53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or portions thereof that it takes title to or develops. 15. PLC Harveston, LLC acknowledges that interest on the Bonds is estimated to be capitalized through September 1, 2005 and that the Special Tax levies on Developed Property will commence in Fiscal Year 2005-06 (commencing with the November 1, 2005 tax installment) in order to pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the District. 16. PLC Harveston, LLC is solvent and no proceedings are pending or, to the Actual Knowledge of the Undersigned, threatened in which PLC Harveston, LLC may be adjudicated as bankrupt or discharged from any and all of its debts or obligations or granted an extension of time to pay its debts or obligations or a reorganization or readjustment of its debts. 17. To the Actual Knowledge of the Undersigned, PLC Harveston, LLC has not filed for, nor are there current proceedings for the reassessment of, the assessed value of the Property. 18. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits, actions or contingent liabilities among PLC Harveston, LLC, its Affiliates or any contractors working on the development of the Property which may materially and adversely affect the development of the Property or the payment of the Special Taxes on the Property. 19. Based upon the current development plans,including, without limitation, thecurrent budget and subject to economic conditions and risks generally inherent in the development of real property, to the Actual Knowledge of the Undersigned, PLC Harveston, LLC will have sufficient funds to carry on its business as presently conducted and as described in the Preliminary Official Statement and to pay Special Taxes assessed against the Property and neither the Authority nor the District will be required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due to PLC Harveston, LLC' nonpayment of Special Taxes. However, none of PLC Harveston, LLC or its Affiliates are obligated to make any additional capital contribution or loan to PLC Harveston, LLC at any time and PLC Harveston, LLC reserves the right to change its plan at any time without notice. 20. All information submitted in writing by, or on behalf of, PLC Harveston, LLC to the Authority, the District, the Special Tax Consultant, Stephen G. White, MAI (the "Appraiser"), Disclosure Counsel or the Underwriter in connection with the issuance of the Bonds, was, at the time of submission, to the Actual Knowledge of the Undersigned, true and correct. 21. To the Actual Knowledge of the Undersigned, there are no endangered species, hazardous substances or archaeological resources relating to the Property which could have a significant impact on PLC Harveston, LLC's ability to pay Special Taxes or to sell or develop all or any portion of PLC Harveston,LLC's Property. 22. As to information indicated in Section 9 hereof concerning PLC Harveston, LLC, its Affiliates and the development of the Property, and subject to the limitations and exclusions set forth in Section 9, PLC Harveston, LLC agrees to indemnify and hold harmless, to the extent permitted by law, the Authority, the District, and their officials and employees, and each person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims, damages or liabilities, joint or several, to which such indemnified party may become subject under any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for any reasonable legal or other expense incurred by it in connection with investigating any claims against it and defending any actions, insofar as such losses, claims, damages, liabilities or actions arise out of, or are based upon, any untrue statement of a material fact or the omission to state a material fact, in the final Official Statement, as of its date or in any continuing disclosure statement, as of its date, provided by or on behalf of PLC Harveston, LLC, a material fact necessary to make the statement therein, in light of the circumstances under which it was made not misleading. This indemnity provision shall not be construed as a limitation on any other liability which PLC Harveston, LLC may otherwise have to any indemnified party, provided that in no event shall PLC Harveston, LLC be obligated for double indemnification nor for the negligence or wilful misconduct of another. 23. If between the date hereof and the date of the Closing, to the Actual Knowledge of the Undersigned, any event relating to or affecting PLC Harveston, LLC or the development of the Property shall occur which might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, PLC Harveston, LLC shall notify the Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, PLC Harveston, LLC shall cooperate with the Authority in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter. 24. For the "underwriting period," as defined in the Bond Purchase Agreement, if any event relating to or affecting PLC Harveston, LLC or the development of the Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, PLC Harveston, LLC shall cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to the Underwriter and counsel to the Authority which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading. 25. PLC Harveston, LLC agrees to deliver a Certificate dated the date of issuance of the Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit A, provided, that, if any event relating to or affecting PLC Harveston, LLC or the development of the Property shall occur as a result of which it is necessary to modify the Certificate, PLC Harveston, LLC agrees to deliver the Certificate revised to reflect such event. 26. On behalf of PLC Harveston, LLC,1 have reviewed the contents of this Certificate and have met with counsel to PLC Harveston, LLC, for the purpose of discussing the meaning of its contents. PLC HARVESTON, LLC, a California limited liability company BY: Christopher Homes, Inc., a_ corporation ITS: 0 Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON 11) SPECIAL TAX BONDS, SERIES 2004 CERTIFICATE OF GREYSTONE HOMES, INC. August 11, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston 11) Stone & Youngberg LLC Ladies and Gentlemen: Reference is made to Temecula Public Financing Authority (the "Authority") Community Facilities District No. 03-06 (Harveston II) (the "District") Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is delivered pursuant to and in satisfaction of Section 3(d)(I6) of the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase Agreement. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of Greystone Homes, Inc., a Delaware corporation ("Greystone Homes"), and the undersigned, on behalf of Greystone Homes further certifies as follows: I. Greystone Homes is duly organized and validly existing under the laws of the State of Delaware, registered to transact intrastate business as a foreign corporation and is in good standing in the State of California and has the corporate power and authority to execute and deliver this Certificate, and to undertake all of the transactions on its part described in the Preliminary Official Statement. 2. As set forth in the Preliminary Official Statement, certain property within the District is owned by Greystone Homes and other property is owned by LEN-Inland, LLC, Inc., a Delaware limited liability company ("LEN-Inland, LLC"), which has entered into various agreements with Greystone Homes, Lennar Homes of California, a California corporation ("Lennar Homes"), and US Home Corporation, a Delaware corporation ("US Home"), and Greystone Homes, Lennar Homes and US Home will acquire and develop such property. Greystone Homes, Lennar Homes, and US Home are collectively referred to herein as the "Lennar Optionees." The property owned by LEN-Inland, LLC, and Greystone Homes is referred to herein as the "Property." The Lennar Optionees are, and Greystone Homes' current expectation is that the Lennar Optionees shall remain, the parties responsible for land use planning and backbone infrastructure of the Property on behalf of the Lennar Optionees. Greystone Homes has not entered into an agreement for development or management of the Property by any entity other than as described in the Preliminary Official Statement. 3. Except as described in the Preliminary Official Statement with regard to previous undertakings relating to Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, to the Actual Knowledge of the Undersigned', neither ' As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge that the undersigned currently has or has obtained from an interview with such officers and responsible employees of Greystone Homes as the undersigned has determined are likely, in the ordinary course of their respective duties, to have knowledge of the matters set forth herein. Other than as set forth in the immediately preceding sentence, with your permission, the undersigned has not conducted any additional inspection or inquiry. Greystone Homes nor its Affiliates have materially failed within the past five years to provide periodic continuing disclosure reports or notices of material events with respect to community facilities districts or assessment districts in California. "Affiliate" of another Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or holding with power to vote, 15% or more of the outstanding voting securities of such other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly controlling, controlled by or under common control with such other Person; for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a Person, unless such power is solely the result of an official position with such Person. "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. 4. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned (a) Greystone Homes and its Affiliates are not in breach of or in default under any applicable law or administrative regulation of the State of California or the United States, or any agency or instrumentality of either, which breach or default would in any way materially and adversely affect the ability of the Lennar Optionees to pay Special Taxes or the Special Taxes under the Option Agreements (as defined in the Preliminary Official Statement), and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing which with the passage of time or giving of notice, or both, would constitute such a breach or default. 5. Except as disclosed in the Preliminary Official Statement, (a) to the Actual Knowledge of the Undersigned, Greystone Homes and its Affiliates are not in breach of or in default under any applicable judgment or decree or any loan agreement, option agreement, development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which Greystone Homes and its Affiliates are, or will upon issuance of the Bonds be, a party or otherwise subject, which breach or default would in any way materially and adversely affect the Lennar Optionees ability to develop the Property or to pay the Special Taxes, and (b) to the Actual Knowledge ofthe Undersigned, no event has occurred and is continuing that with the passage oftime or giving of notice, or both, would constitute such a breach or default. 6. Except as described inthe Preliminary Official Statement, there are no material loans outstanding and unpaid and no material lines of credit of Greystone Homes or its Affiliates that are secured by an interest in the Property. 7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit, action, contingent liability or litigation is pending (with service of process to Greystone Homes having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened(a)to restrain or enjoin collection of Special Taxes or other sums pledged or to be pledged to pay the principal of and interest on the Bonds, or (b) to restrain or enjoin development of the Property. 8. Except as set forth in the Preliminary Official Statement, no litigation is pending with service of process to Greystone Homes, to the Actual Knowledge of the Undersigned, no litigation is pending with service of process to any Affiliate having been accomplished, and, to the Actual Knowledge of the Undersigned, no litigation is threatened against the Lennar Optionees or any Affiliate involving the Lennar Optionees or any Affiliate, or any of the property or assets under the control of the Lennar Optionees or any Affiliate that involves the possibility of any judgment or uninsured liability which may result in any material adverse change in the assets or funds held by the Lennar Optionees or any Affiliate that would materially and adversely affect the Lennar Optionees' ability to develop the Property or to pay Special Taxes. 9. As of the date thereof, but solely with respect to information regarding Greystone Homes, its Affiliates, the Property (including the proposed development and ownership thereof), Greystone Homes' development plan, Greystone Homes financing plan, Greystone Homes' lenders secured by land within the District, if any, and the contractual arrangements of Greystone Homes LLC (but excluding, in all cases, information on William Lyon Homes, Inc., PLC Harveston LLC and Christopher Homes, LLC and their development and financing plans) and subject to the exclusions set forth below, the information contained in the Preliminary Official Statement under the captions "INTRODUCTION —The Community Facilities District" (excluding therefrom the first two paragraphs for which no certification is made) and "THE COMMUNITY FACILITIES DISTRICT," and "PROPERTY OWNERSHIP" (excluding therefrom information under the subcaptions " — William Lyon Homes, Inc.," "PLC Harveston, LLC; Christopher Homes, Inc.," " — Direct and Overlapping Debt," " — Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," "— Overlapping Community Facilities and Assessment Districts," "— Other Overlapping Direct Assessments," "—Estimated Assessed Value -to -Lien Ratios,"" —Transportation Uniform Mitigation Fee; Multi -Species Habitat Conservation Plan," "— Market Absorption Study," and'— Appraised Property Value" for which no certification is made), is true and correct in all material respects and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 10. Greystone Homes has full corporate power and authority to develop the Property, to own any portion of the Property it acquires and to carry on its business as presently conducted and as described in the Preliminary Official Statement. 11. Greystone Homes covenants that, while the Bonds or any refunding obligations related thereto are outstanding, Greystone Homes will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of Ordinance No. 2003-02 of the Authority levying Special Taxes within the District, to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax lien relating thereto. The foregoing covenant shall not prevent Greystone Homes in any way from bringing any other action, suit or proceeding including, without limitation, an action or suit contending that the Special Tax has not been levied in accordance with the methodologies contained in the District's Rate and Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an action or suit with respect to the application or use of the Special Taxes levied and collected, or an action or suit to enforce the obligations of the Authority under the Resolution of Issuance, the Fiscal Agent Agreement or any agreements with the Authority, the City and/or the District for which Greystone Homes is a party or beneficiary. 12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, no other public debt secured by a tax or assessment on the Property exists or is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed that include any portion of the Property. 13. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, Greystone Homes and its Affiliates have not in the last five years defaulted in payment of, and are not currently delinquent on, any ad valorem, assessment or special tax obligations in California in any material amount. 14. Greystone Homes consents to the issuance of the Bonds. Greystone Homes acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official Statement, provided that nothing in this statement modifies any right or obligation of the parties under any other agreement. 15. Greystone Homes intends to comply with the provision ofGovernment Code Section 53341.5 relating to the Notice of Special Tax in connection with the sale ofthe Property, or portions thereof that it takes title to or develops. 16. Greystone Homes acknowledges that interest on the Bonds is estimated to be capitalized through September 1, 2005 and that the Special Tax levies on Developed Property will commence in Fiscal Year2005-06 (commencing with the November 1, 2005 tax installment) in order to pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the District. 17. Greystone Homes is solvent and no proceedings are pending or, to the Actual Knowledge of the Undersigned, threatened in which Greystone Homes may be adjudicated as bankrupt or discharged from any and all of its debts or obligations or granted an extension of time to pay its debts or obligations or a reorganization or readjustment of its debts. 18. To the Actual Knowledge of the Undersigned, US Home and Lennar Corporation, a Delaware corporation ("Lennar Corporation"), are solvent and no proceedings are pending, or to the Actual Knowledge ofthe Undersigned, threatened in which US Home or Lennar Corporation may be adjudicated as bankrupt or discharged from any or all of their respective debts or obligations, or granted an extension oftime to pay their respective debts or obligations, or be allowed to reorganize or readjust their respective debts or obligations. 19. To the Actual Knowledge of the Undersigned, the Lennar Optionees have not filed for, nor are there current proceedings for the reassessment of, the assessed value of the Property. 20. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits, actions or contingent liabilities among Greystone Homes, its Affiliates or any contractors working on the development of the Property which may materially and adversely affect the development of the Property or the payment of the Special Taxes on the Property. 21. Based upon the current development plans,including, without limitation, the current budget and subject to economic conditions and risks generally inherent in the development of real property, to the Actual Knowledge of the Undersigned, the Lennar Optionees will have sufficient funds to carry on their business as presently conducted and as described in the Preliminary Official Statement and to pay Special Taxes assessed against the Property and neither the Authority nor the District will be required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due to the Lennar Optionees' nonpayment of Special Taxes. However, Greystone Homes and its Affiliates are not obligated to make any additional capital contribution or loan to Greystone Homes at any time and Greystone Homes reserves the right to change its plan at any time without notice. 22. All information submitted in writing by, or on behalf of, Greystone Homes to the Authority, the District, the Special Tax Consultant, Stephen G. White, MAI (the "Appraiser"), Disclosure Counsel or the Underwriter in connection with the issuance of the Bonds, was, at the time of submission, to the Actual Knowledge of the Undersigned, true and correct. 23. To the Actual Knowledge of the Undersigned, there are no endangered species, hazardous substances or archaeological resources relating to the Property which could have a significant impact on Greystone Homes' ability to pay Special Taxes or to sell or develop all or any portion of Greystone Homes' Property. 24. As to information indicated in Section 9 hereof concerning Greystone Homes and the development of the Property, and subject to the limitations and exclusions set forth in Section 9, Greystone Homes agrees to indemnify and hold harmless, to the extent permitted by law, the Authority, the District, and their officials and employees, and each person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims, damages or liabilities, joint or several, to which such indemnified party may become subject under any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for any reasonable legal or other expense incurred by it in connection with investigating any claims against it and defending any actions, insofar as such losses, claims, damages, liabilities or actions arise out of, or are based upon, any untrue statement of a material fact or the omission to state a material fact, in the final Official Statement, as of its date or in any continuing disclosure statement, as of its date, provided by or on behalf of Greystone Homes, a material fact necessary to make the statement therein, in light of the circumstances under which it was made not misleading. This indemnity provision shall not be construed as a limitation on any other liability which Greystone Homes may otherwise have to any indemnified party, provided that in no event shall Greystone Homes be obligated for double indemnification nor for the negligence or wilful misconduct of another. 25. If between the date hereof and the date of the Closing, to the Actual Knowledge of the Undersigned, any event relating to or affecting the Lennar Optionees, their Affiliates, or the development of the Property shall occur which might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, Greystone Homes shall notify the Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, Greystone Homes shall cooperate with the Authority in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter. 26. For the "underwriting period," as defined in the Bond Purchase Agreement, if any event relating to or affecting the Lennar Optionees, their Affiliates, or the development of the Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, Greystone Homes shall cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to the Underwriter and counsel to the Authority which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading. 27. Greystone Homes agrees to deliver a Certificate dated the date of issuance of the Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit A, provided, that, if any event relating to or affecting the Lennar Optionees, their Affiliates, or the development of the Property shall occur as a result of which it is necessary to modify the Certificate, Greystone Homes agrees to deliver the Certificate revised to reflect such event. 28. On behalf of Greystone Homes, I have reviewed the contents of this Certificate and have met with counsel to Greystone Homes, forthe purpose of discussing the meaning of its contents. GREYSTONE HOMES, INC., a Delaware corporation 0 Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CERTIFICATE OF HARVESTON, LLC August 11, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston II) Stone & Youngberg LLC Ladies and Gentlemen: Reference is made to Temecula Public Financing Authority (the "Authority") Community Facilities District No. 03-06 (Harveston II) (the "District") Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is delivered pursuant to and in satisfaction of Section 3(d)(16) of the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase Agreement. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officerof Harveston, LLC, Inc., a Delaware limited liability company ("Harveston, LLC"), and the undersigned, on behalf of Harveston, LLC further certifies as follows: 1. Harveston, LLC is duly organized and validly existing under the laws of the State of Delaware, registered to transact intrastate business as a foreign corporation and is in good standing in the State of California and has the corporate power and authority (i) to execute and deliver this Certificate, to execute and deliver at Closing (as defined in the Bond Purchase Agreement) the Developer Continuing Disclosure Agreement (the "Developer Continuing Disclosure Agreement") dated as of August 1, 2004, by and between Harveston, LLC and U.S. Bank National Association, as Dissemination Agent and Fiscal Agent; (ii) to execute and deliver the Acquisition Agreement, dated as of August 1, 2002, as supplemented by Supplement No. I to Acquisition Agreement, dated November 25, 2003, each executed by and between the Authority and Harveston, LLC (collectively, the "Acquisition Agreement") and (iii) to undertake all of the transactions on its part described in the Preliminary Official Statement and contemplated by the Developer Continuing Disclosure Agreement and the Acquisition Agreement. 2. As set forth in the Preliminary Official Statement, certain property within the District is owned by Harveston, LLC and Harveston, LLC will develop such property. The property owned by Harveston, LLC is referred to herein as the "Property." Harveston, LLC's current expectation is that Harveston, LLC shall remain the party responsible for land use planning and backbone infrastructure of the Property. Harveston, LLC has not entered into an agreement for development or management of the Property by any entity other than as described in the Preliminary Official Statement. 3. Harveston, LLC has the authority to execute and deliver at Closing ofthe Developer Continuing Disclosure Agreement and the Acquisition Agreement and has the authority to perform the obligations on its part to be performed thereunder. Except as described in the Preliminary Official Statement with regard to previous undertakings relating to Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, to the Actual Knowledge of the Undersigned', neither Harveston, LLC nor its Affiliates have materially failed within the past five years to provide periodic continuing disclosure reports or notices of material events with respect to community facilities districts or assessment districts in California. "Affiliate" of another Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or holding with power to vote, 15% or more of the outstanding voting securities of such other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly controlling, controlled by or under common control with such other Person; for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a Person, unless such power is solely the result of an official position with such Person. "Person" means an individual, a corporation, a partnership, an association, ajoint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. 4. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned (a) Harveston, LLC and its Affiliates are not in breach of or in default under any applicable law or administrative regulation of the State of California or the United States, or any agency or instrumentality of either, which breach or default would in any way materially and adversely affect the proposed Developer Continuing Disclosure Agreement, the Acquisition Agreement or the ability of Harveston, LLC to pay its Special Taxes, and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing which with the passage of time or giving of notice, or both, would constitute such a breach or default; and to the Actual Knowledge of the Undersigned, the execution and delivery at Closing by Harveston, LLC of the Developer Continuing Disclosure Agreement and compliance with the provisions thereof will not conflict with or constitute a breach of or default under any law or administrative regulation applicable to Harveston, LLC. 5. Except as disclosed in the Preliminary Official Statement, (a) to the Actual Knowledge of the Undersigned, Harveston, LLC and its Affiliates are not in breach of or in default under any applicable judgment or decree or any loan agreement, option agreement, development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which Harveston, LLC or its Affiliates are, or will upon issuance of the Bonds be, a party or otherwise subject, which breach or default would in any way materially and adversely affect the proposed Continuing Disclosure Agreement, the Acquisition Agreement or Harveston, LLC's ability to develop the Property or to pay the Special Taxes, and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing that with the passage of time or giving of notice, or both, would constitute such a breach or default; and the execution and delivery at Closing by Harveston, LLC of the Developer Continuing Disclosure Agreement and compliance with the provisions thereof will not conflict with or, constitute a breach of or default under any judgment, decree, loan agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which Harveston, LLC or its Affiliates is a party or otherwise subject which breach or default would in any way materially and adversely affect the Developer Continuing Disclosure Agreement or Harveston, LLC's ability to develop the Property or its ability to pay the Special Taxes. 6. Except as described in the Preliminary Official Statement, there are nomaterial loans outstanding and unpaid and no material lines of credit of Harveston, LLC or its Affiliates that are secured by an interest in the Property. ' As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge that the undersigned currently has or has obtained from an interview with such officers and responsible employees of Harveston, LLC as the undersigned has determined are likely, in the ordinary course of its respective duties, to have knowledge of the matters set forth herein. Other than as set forth in the immediately preceding sentence, with your permission, the undersigned has not conducted any additional inspection or inquiry. 7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit, action, contingent liability or litigation is pending (with service of process to Harvester, LLC or any Member of Harveston, LLC, or any parent entity of any Member, having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened (a) to restrain or enjoin collection of Special Taxes or other sums pledged or to be pledged to pay the principal of and interest on the Bonds, (b) to restrain or enjoin the execution of and performance of Harveston, LLC's obligations under the proposed Developer Continuing Disclosure Agreement or the Acquisition Agreement, (c) to restrain or enjoin development of the Property, (d) in any way contesting or affecting the validity of the Special Taxes, the proposed Developer Continuing Disclosure Agreement, the Acquisition Agreement or any other document, license, permit or approval necessary to the performance on Harveston, LLC's part under the proposed Developer Continuing Disclosure Agreement or the Acquisition Agreement or (e) which would in any way materially and adversely affect the Harveston, LLC's ability to develop the Property or to pay Special Taxes. 8. Except as set forth in the Preliminary Official Statement, no litigation is pending with service of process to Harveston, LLC, to the Actual Knowledge ofthe Undersigned, no litigation is pending with service of process to any Affiliate having been accomplished, and, to the Actual Knowledge of the Undersigned, no litigation is threatened against Harveston, LLC or any Affiliate involving Harveston, LLC or any Affiliate, or any of the property or assets under the control of Harveston, LLC or any Affiliate that involves the possibility of anyjudgment or uninsured liability which may result in any material adverse change in the assets or funds held by Harveston, LLC or any Affiliate that would materially and adversely affect Harveston, LLC' ability to develop the Property or to pay Special Taxes. 9. As of the date thereof, but solely with respect to information regarding Harveston, LLC and its Affiliates, the proposed development ofthe Property, ownership ofthe Property and the Harveston LLC's development plan, Harveston, LLC's financing plan, Harveston LLC's lenders, if any, and the contractual arrangements of Harveston, LLC LLC (but excluding, in all cases, information on William Lyon Homes, Inc., PLC Harveston LLC and Christopher Homes, LLC and their development and financing plans) and subject to the exclusions set forth below, the information contained in the Preliminary Official Statement under the captions "INTRODUCTION — The Community Facilities District" (excluding therefrom the first two paragraphs for which no certification is made) "CONTINUING DISCLOSURE — Harveston, LLC," and "THE COMMUNITY FACILITIES DISTRICT," and "PROPERTY OWNERSHIP" (excluding therefrom information under the subcaptions "William Lyon Homes, Inc.," "PLC Harveston, LLC; Christopher Homes, Inc.,""— Direct and Overlapping Debt,""— Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," ` — Overlapping Community Facilities and Assessment Districts," "— Other Overlapping Direct Assessments," "— Estimated Assessed Value -to - Lien Ratios,"" —Transportation Uniform Mitigation Fee; Multi -Species Habitat Conservation Plan," "— Market Absorption Study," and' — Appraised Property Value" for which no certification is made) is true and correct in all material respects and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 10. Harveston, LLC has full corporate power and authority to develop the Property, to own any portion of the Property it acquires and to carry on its business as presently conducted and as described in the Preliminary Official Statement. It. Harveston, LLC covenants that, whiletheBonds orany refunding obligations related thereto are outstanding, Harveston, LLC will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of Ordinance No. 2003-02 of the Authority levying Special Taxes within the District, to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation ofthe notices of special tax lien relating thereto. The foregoing covenant shall not prevent Harveston, LLC in any way from bringing any other action, suit or proceeding including, without limitation, an action or suit contending that the Special Tax has not been levied in accordance with the methodologies contained in the District's Rate and Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an action or suit with respect to the application or use of the Special Taxes levied and collected, or an action or suit to enforce the obligations of the Authority under the Resolution of Issuance, the Fiscal Agent Agreement, the Acquisition Agreement or any agreements with the Authority, the City and/or the District for which Harveston, LLC is a parry or beneficiary. 12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, no other public debt secured by a tax or assessment on the Property exists or is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed that include any portion of the Property. 13. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, Harveston, LLC and its Affiliates have not in the last five years defaulted in payment of, and are not currently delinquent on, any ad valorem, assessment or special tax obligations in California in any material amount. 14. Harveston, LLC consents to the issuance of the Bonds. Harveston, LLC acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official Statement, provided that nothing in this statement modifies any right or obligation of the parties under the Acquisition Agreement, or any other agreement. 15. Harveston, LLC intends to comply with the provision of Government Code Section 53341.5 relating to the Notice of Special Tax in connection with the sale ofthe Property, or portions thereof that it takes title to or develops. 16. Harveston, LLC acknowledges that interest on the Bonds is estimated to be capitalized through September 1, 2005 and that the Special Tax levies on Developed Property will commence in Fiscal Year 2005-06 (commencing with the November 1, 2005 tax installment) in order to pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the District. 17. Harveston, LLC is solvent and no proceedings are pending or, to the Actual Knowledge of the Undersigned, threatened in which Harveston, LLC maybe adjudicated as bankrupt or discharged from any and all of its debts or obligations or granted an extension of time to pay its debts or obligations or a reorganization or readjustment of its debts. 18. To the Actual Knowledge of the Undersigned, the Members of Harveston, LLC and the parent entities of such Members of Harveston, LLC are solvent and no proceedings are pending, or to the Actual Knowledge ofthe Undersigned, threatened in which the Members of Harveston, LLC and the parent entities of such Members of Harveston, LLC may be adjudicated as bankrupt or discharged from any or all of their respective debts or obligations, or granted an extension of time to pay their respective debts or obligations, or be allowed to reorganize or readjust their respective debts or obligations. 19. To the Actual Knowledge ofthe Undersigned, Harveston, LLC has not filed for, nor are there current proceedings for the reassessment of, the assessed value of the Property. 20. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits, actions or contingent liabilities among Harveston, LLC, its Affiliates or any contractors working on the development of the Property which may materially and adversely affect the development of the Property or the payment of the Special Taxes on the Property. 21. Based upon the current development plans,including, without limitation, the current budget and subject to economic conditions and risks generally inherent in the development of real property, to the Actual Knowledge of the Undersigned, Harveston, LLC will have sufficient funds to carry on its business as presently conducted and as described in the Preliminary Official Statement and to pay Special Taxes assessed against the Property and neither the Authority nor the District will be required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due to Harveston, LLC's nonpayment of Special Taxes. However, none of the members of Harveston, LLC or its Affiliates are obligated to make any additional capital contribution or loan to the Harveston, LLC at any time and Harveston, LLC reserves the right to change its plan at any time without notice. 22. All information submitted in writing by, or on behalf of, Harveston, LLC to the Authority, the District, the Special Tax Consultant, Stephen G. White, MAI (the "Appraiser"), Disclosure Counsel or the Underwriter in connection with the issuance ofthe Bonds, was, at the time of submission, to the Actual Knowledge of the Undersigned, true and correct. 23. To the Actual Knowledge of the Undersigned, there are no endangered species, hazardous substances or archaeological resources relating to the Property which could have a significant impact on Harveston, LLC's ability to pay Special Taxes or to sell or develop all or any portion of Harveston, LLC's Property. 24. As to information indicated in Section 9 hereof concerning Harveston, LLC, its Affiliates and the development of the Property, and subject to the limitations and exclusions set forth in Section 9, Harveston, LLC agrees to indemnify and hold harmless, to the extent permitted by law, the Authority, the District, and their officials and employees, and each person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims, damages or liabilities, joint or several, to which such indemnified party may become subject under any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for any reasonable legal or other expense incurred by it in connection with investigating any claims against it and defending any actions, insofar as such losses, claims, damages, liabilities or actions arise out of, or are based upon, any untrue statement of a material fact or the omission to state a material fact, in the final Official Statement, as of its date or in any continuing disclosure statement, as of its date, provided by or on behalf of Harveston, LLC, a material fact necessary to make the statement therein, in light of the circumstances under which it was made not misleading. This indemnity provision shall not be construed as a limitation on any other liability which Harveston, LLC may otherwise have to any indemnified party, provided that in no event shall Harveston, LLC be obligated for double indemnification nor for the negligence or wilful misconduct of another. 25. Harveston, LLC has agreed to execute the Developer Continuing Disclosure Agreement in the form included in Appendix G to the Preliminary Official Statement. 26. If between the date hereof and the date of the Closing, to the Actual Knowledge of the Undersigned, any event relating to or affecting Harveston, LLC, its Affiliates or the development of the Property shall occur which might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, Harveston, LLC shall notify the M Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, Harveston, LLC shall cooperate with the Authority in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter. 27. For the "underwriting period," as defined in the Bond Purchase Agreement, if any event relating to or affecting Harveston, LLC, its Affiliates or the development of the Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, Harveston, LLC shall cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to the Underwriter and counsel to the Authority which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading. 28. Harveston, LLC agrees to deliver a Certificate dated the date of issuance of the Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit A, provided, that, if any event relating to or affecting Harveston, LLC or its Affiliates or the development of the Property shall occur as a result of which it is necessary to modify the Certificate, Harveston, LLC agrees to deliver the Certificate revised to reflect such event. 29. On behalf of Harveston, LLC, I have reviewed the contents of this Certificate and have met with counsel to Harveston, LLC, for the purpose of discussing the meaning of its contents. HARVESTON, LLC, a Delaware limited liability company By: LENNAR HOMES OF CALIFORNIA, INC., a California corporation its Administrative Member am Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CERTIFICATE OF LEN-INLAND, LLC August 11, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston II) Stone & Youngberg LLC Ladies and Gentlemen: Reference is made to Temecula Public Financing Authority (the "Authority") Community Facilities District No. 03-06 (Harveston II) (the "District") Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is delivered pursuant to and in satisfaction of Section 3(d)(16) of the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase Agreement. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of LEN-Inland, LLC, a Delaware limited liability company ("LEN-Inland, LLC"), and the undersigned, on behalf of LEN-Inland, LLC further certifies as follows: 1. LEN-Inland, LLC is duly organized and validly existing under the laws of the State of Delaware, registered to transact intrastate business as a foreign corporation and is in good standing in the State of California and has the corporate power and authority to execute and deliver this Certificate, and to undertake all of the transactions on its part described in the Preliminary Official Statement. 2. As set forth in the Preliminary Official Statement, certain property within the District is owned by LEN-Inland, LLC, Inc., a Delaware limited liability company ("LEN-Inland, LLC") which has entered into various agreements with Greystone Homes, Inc., a Delaware corporation ("Greystone Homes"), Lennar Homes ofCalifornia, Inc., a California corporation ("Lennar Homes"), and US Home Corporation, a Delaware corporation ("US Home") and Greystone, Lennar Homes and US Home will acquire and develop such property. Greystone Homes, Lennar Homes, Homes and US Home are collectively referred to herein as the "Lennar Optionees." The property owned by LEN-Inland, LLC and Greystone Homes is referred to herein as the "Property." The Lennar Optionees are, and LEN-Inland's current expectation is that the Lennar Optionees shall remain, the parties responsible for land use planning and backbone infrastructure ofthe Property on behalfof the Lennar Optionees. LEN-Inland, LLC has not entered into an agreement for development or management of the Property by any entity other than as described in the Preliminary Official Statement. 3. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned', (a) LEN-Inland, LLC and its Affiliates are not in breach of or in default under As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge that the undersigned currently has or has obtained from an interview with such officers and responsible employees of LEN-Inland, LLC as the undersigned has determined are likely, in the ordinary course of its respective duties, to have knowledge of the matters set forth herein. Other than as set forth in the immediately preceding sentence, with any applicable law or administrative regulation of the State of California or the United States, or any agency or instrumentality of either, which breach or default would in any way materially and adversely affect the ability of LEN-Inland, LLC to pay Special Taxes or to cause the Special Taxes to be paid under the Option Agreements (as defined in the Preliminary Official Statement), and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing which with the passage of time or giving of notice, or both, would constitute such a breach or default. "Affiliate" of another Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or holding with power to vote, 15% or more of the outstanding voting securities of such other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly controlling, controlled by or under common control with such other Person; for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a Person, unless such power is solely the result of an official position with such Person. "Person" means an individual, a corporation, a partnership, an association, ajoint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. 4. Except as disclosed in the Preliminary Official Statement, (a) to the Actual Knowledge of the Undersigned, LEN-Inland, LLC and its Affiliates are not in breach of or in default under any applicable judgment or decree or any loan agreement, option agreement, development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which LEN-Inland, LLC or its Affiliates are, or will upon issuance of the Bonds be, a party or otherwise subject, which breach or default would in any way materially and adversely affect LEN- Inland, LLC's ability to develop the Property or to pay the Special Taxes or to cause the Special Taxes to be paid pursuant to the Option Agreement, and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing that with the passage of time or giving of notice, or both, would constitute such a breach or default. 5. Except as described in the Preliminary Official Statement, there are no material loans outstanding and unpaid and no material lines of credit of LEN-Inland, LLC or its Affiliates that are secured by an interest in the Property. 6. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit, action, contingent liability or litigation is pending (with service of process to LEN-Inland, LLC having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened (a) to restrain or enjoin collection of Special Taxes or other sums pledged or to be pledged to pay the principal of and interest on the Bonds, or (b) to restrain or enjoin development of the Property. 7. Except as set forth in the Preliminary Official Statement, no litigation is pending with service of process to LEN-Inland, LLC, to the Actual Knowledge of the Undersigned, no litigation is pending with service of process to any Affiliate having been accomplished, and, to the Actual Knowledge of the Undersigned, no litigation is threatened against LEN-Inland, LLC or any Affiliate involving LEN-Inland, LLC or any Affiliate, or any of the property or assets under the control of LEN-Inland, LLC or any Affiliate that involves the possibility of any judgment or uninsured liability which may result in any material adverse change in the assets or funds held by LEN-Inland, LLC or any Affiliate that would materially and adversely affect LEN-Inland, LLC's ability to develop the Property or to pay Special Taxes. 8. As ofthe date thereof, but solely with respect to information regarding LEN-Inland, LLC and its Affiliates, the Property (including the proposed development and ownership thereof), LEN-Inland, LLC's development plan, LEN-Inland, LLC's financing plan, LEN-Inland, LLC's your permission, the undersigned has not conducted any additional inspection or inquiry. lenders secured by land within the District, if any, and the contractual arrangements of LEN-Inland, LLC LLC (but excluding, in all cases, information on William Lyon Homes, Inc., PLC Harveston LLC and Christopher Homes, LLC and their development and financing plans) and subject to the exclusions set forth below, the information contained in the Preliminary Official Statement under the captions "INTRODUCTION —The Community Facilities District" (excluding therefrom the first two paragraphs for which no certification is made) and "PROPERTY OWNERSHIP" (excluding therefrom information under the subcaptions"— William Lyon Homes, Inc.," "PLC Harveston, LLC; Christopher Homes, Inc.,"" — Direct and Overlapping Debt," "— Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," "—Overlapping Community Facilities and Assessment Districts," " — Other Overlapping Direct Assessments," " — Estimated Assessed Value -to -Lien Ratios," " — Transportation Uniform Mitigation Fee; Multi -Species Habitat Conservation Plan,`"— Market Absorption Study," and "— Appraised Property Value" for which no certification is made) is true and correct in all material respects and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 9. LEN-Inland, LLC has full corporate power and authority to develop the Property, to own any portion of the Property it acquires and to carry on its business as presently conducted and as described in the Preliminary Official Statement. 10. LEN-Inland, LLC covenants that, while the Bonds or any refunding obligations related thereto are outstanding, LEN-Inland, LLC will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of Ordinance No. 2003-02 of the Authority levying Special Taxes within the District, to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax lien relating thereto. The foregoing covenant shall not prevent LEN-Inland, LLC in any way from bringing any other action, suit or proceeding including, without limitation, an action or suit contending that the Special Tax has not been levied in accordance with the methodologies contained in the District's Rate and Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an action or suit with respect to the application or use of the Special Taxes levied and collected, or an action or suit to enforce the obligations of the Authority under the Resolution of Issuance, the Fiscal Agent Agreement or any agreements with the Authority, the City and/or the District for which LEN-Inland, LLC is a party or beneficiary. 1 1. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, no other public debt secured by a tax or assessment on the Property exists or is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed that include any portion of the Property. 12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, LEN-Inland, LLC and its Affiliates have not in the last five years defaulted in payment of, and are not currently delinquent on, any ad valorem, assessment or special tax obligations in California in any material amount. J LEN-Inland, LLC consents to the issuance of the Bonds. LEN-Inland, LLC acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official Statement, provided that nothing in this statement modifies any right or obligation of the parties under any other agreement. 14. LEN-Inland, LLC intends to comply with the provision of Government Code Section 53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or portions thereof that it takes title to or develops. 15. LEN-Inland, LLC acknowledges that interest on the Bonds is estimated to be capitalized through September 1, 2005 and that the Special Tax levies on Developed Property will commence in Fiscal Year 2005-06 (commencing with theNovember 1, 2005 tax installment) in order to pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the District. 16. LEN-Inland, LLC is solvent and no proceedings are pending or, to the Actual Knowledge of the Undersigned, threatened in which LEN-Inland, LLC may be adjudicated as bankrupt or discharged from any and all of its debts or obligations or granted an extension of time to pay its debts or obligations or a reorganization or readjustment of its debts. 17. To the Actual Knowledge of the Undersigned, the Members of LEN-Inland, LLC are solvent and no proceedings are pending, or to the Actual Knowledge of the Undersigned, threatened in which the Members of LEN-Inland, LLC may be adjudicated as bankrupt or discharged from any or all of its respective debts or obligations, or granted an extension of time to pay its respective debts or obligations, or be allowed to reorganize or readjust its respective debts or obligations. 18. To the Actual Knowledge of the Undersigned, LEN-Inland, LLC has not filed for, nor are there current proceedings for the reassessment of, the assessed value of the Property. 19. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits, actions or contingent liabilities among LEN-Inland, LLC, its Affiliates or any contractors working on the development of the Property which may materially and adversely affect the development of the Property or the payment of the Special Taxes on the Property. 20. Based uponthe current development plans, including, without limitation, the current budget and subject to economic conditions and risks generally inherent in the development of real property, to the Actual Knowledge of the Undersigned, LEN-Inland, LLC will have sufficient funds to carry on its business as presently conducted and as described in the Preliminary Official Statement and to pay Special Taxes assessed against the Property and neither the Authority nor the District will be required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due to LEN-Inland, LLC's nonpayment of Special Taxes. However, none of LEN-Inland, LLC or its Affiliates are obligated to make any additional capital contribution or loan to LEN-Inland, LLC at any time and LEN-Inland, LLC reserves the right to change its plan at any time without notice. 21. All information submitted in writing by, or on behalf of, LEN-Inland, LLC to the Authority, the District, the Special Tax Consultant, Stephen G. White, MAI (the "Appraiser"), Disclosure Counsel or the Underwriter in connection with the issuance ofthe Bonds, was, at the time of submission, to the Actual Knowledge of the Undersigned, true and correct. 22. To the Actual Knowledge of the Undersigned, there are no endangered species, hazardous substances or archaeological resources relating to the Property which could have a significant impact on LEN-Inland, LLC's ability to pay Special Taxes or to sell or develop all or any portion of LEN-Inland, LLC's Major Developer's Property. 23. As to information indicated in Section 9 hereof concerning LEN-Inland, LLC, its Affiliates and the development ofthe Property, and subject to the limitations and exclusions set forth in Section 9, LEN-Inland, LLC agrees to indemnify and hold harmless, to the extent permitted by law, the Authority, the District, and their officials and employees, and each person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims, damages or liabilities, joint or several, to which such indemnified party may become subject under any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for any reasonable legal or other expense incurred by it in connection with investigating any claims against it and defending any actions, insofar as such losses, claims, damages, liabilities or actions arise out of, or are based upon, any untrue statement of a material fact or the omission to state a material fact, in the final Official Statement, as of its date or in any continuing disclosure statement, as of its date, provided by or on behalf of LEN-Inland, LLC, a material fact necessary to make the statement therein, in light of the circumstances under which it was made not misleading. This indemnity provision shall not be construed as a limitation on any other liability which LEN-Inland, LLC may otherwise have to any indemnified party, provided that in no event shall LEN-Inland, LLC be obligated for double indemnification nor for the negligence or wilful misconduct of another. 24. If between the date hereof and the date of the Closing, to the Actual Knowledge of the Undersigned, any event relating to or affecting LEN-Inland, LLC or the development of the Property shall occur which might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, LEN-Inland, LLC shall notify the Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, LEN-Inland, LLC shall cooperate with the Authority in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter. 25. For the "underwriting period," as defined in the Bond Purchase Agreement, if any event relating to or affecting LEN-Inland, LLC or the development of the Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, LEN-Inland, LLC shall cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to the Underwriter and counsel to the Authority which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading. 26. LEN-Inland, LLC agrees to deliver a Certificate dated the date of issuance of the Bonds at the time of issuance ofthe Bonds in substantially the form attached as Exhibit A, provided, that, if any event relating to or affecting LEN-Inland, LLC or the development of the Property shall occur as a result ofwhich it is necessary to modify the Certificate, LEN-Inland, LLC agrees to deliver the Certificate revised to reflect such event. 27. On behalf of LEN-Inland, LLC, I have reviewed the contents of this Certificate and have met with counsel to LEN-Inland, LLC, for the purpose ofdiscussing the meaning of its contents. LEN-INLAND, LLC, a Delaware limited liability company By: Lennar Homes of California, Inc. a California corporation, its Manager am Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CERTIFICATE OF LENNAR HOMES OF CALIFORNIA, INC. August 11, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston 11) Stone & Youngberg LLC Ladies and Gentlemen Reference is made to Temecula Public Financing Authority (the "Authority") Community Facilities District No. 03-06 (Harveston II) (the "District") Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is delivered pursuant to and in satisfaction of Section 3(d)(16) of the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase Agreement. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of Lennar Homes of California, Inc., a California corporation ("Lennar Homes"), and the undersigned, on behalf of Lennar Homes further certifies as follows: 1. Lennar Homes is duly organized and validly existing under the laws of the State of California, and is in good standing in the State of California and has the corporate power and authority to execute and deliver this Certificate, and to undertake all of the transactions on its part described in the Preliminary Official Statement. 2. As set forth in the Preliminary Official Statement, certain property within the District is owned by Lennar Homes and other property is owned by LEN-Inland, LLC, Inc., a Delaware limited liability company ("LEN-Inland, LLC"), which has entered into various agreements with Greystone Homes, Inc., a Delaware corporation ("Greystone Homes"), Lennar Homes of California, a Califomia corporation ("Lennar Homes"), and US Home Corporation, a Delaware corporation ("US Home"), and Greystone Homes, Lennar Homes and US Home will acquire and develop such property. Greystone Homes, Lennar Homes, and US Home are collectively referred to herein as the "Lennar Optionees." The property owned by LEN-Inland, LLC, and Lennar Homes is referred to herein as the "Property." The Lennar Optionees are, and Lennar Homes' current expectation is that the Lennar Optionees shall remain, the parties responsible for land use planning and backbone infrastructure of the Property on behalf of the Lennar Optionees. Lennar Homes has not entered into an agreement for development or management of the Property by any entity other than as described in the Preliminary Official Statement. 3. Except as described in the Preliminary Official Statement with regard to previous undertakings relating to Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, to the Actual Knowledge of the Undersigned', neither ' As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge that the undersigned currently has or has obtained from an interview with such officers and responsible employees of Lennar Homes as the undersigned has determined are likely, in the ordinary course of their respective duties, to have knowledge of the matters set forth herein. Other than as set forth in the immediately preceding sentence, with your permission, the undersigned has not conducted any additional inspection or inquiry. Lennar Homes nor its Affiliates have materially failed within the past five years to provide periodic continuing disclosure reports or notices of material events with respect to community facilities districts or assessment districts in California. "Affiliate" of another Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or holding with power to vote, 15% or more of the outstanding voting securities of such other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly controlling, controlled by or under common control with such other Person; for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a Person, unless such power is solely the result of an official position with such Person. "Person" means an individual, a corporation, a partnership, an association, ajoint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. 4. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned (a) Lennar Homes and its Affiliates are not in breach of or in default under any applicable law or administrative regulation of the State of California or the United States, or any agency or instrumentality of either, which breach or default would in any way materially and adversely affect the ability ofthe Lennar Optionees to pay Special Taxes or the Special Taxes under the Option Agreements (as defined in the Preliminary Official Statement), and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing which with the passage of time or giving of notice, or both, would constitute such a breach or default. 5. Except as disclosed in the Preliminary Official Statement, (a) to the Actual Knowledge of the Undersigned, Lennar Homes and its Affiliates are not in breach of or in default under any applicable judgment or decree or any loan agreement, option agreement, development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which Lennar Homes and its Affiliates are, or will upon issuance of the Bonds be, a party or otherwise subject, which breach or default would in any way materially and adversely affect the Lennar Optionees ability to develop the Property or to pay the Special Taxes, and (b) to the Actual Knowledge ofthe Undersigned, no event has occurred and is continuing that with the passage oftime or giving of notice, or both, would constitute such a breach or default. 6. Except as described in the Preliminary Official Statement, there are no material loans outstanding and unpaid and no material lines of credit of Lennar Homes or its Affiliates that are secured by an interest in the Property. 7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit, action, contingent liability or litigation is pending (with service of process to Lennar Homes having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened (a) to restrain or enjoin collection of Special Taxes or other sums pledged or to be pledged to pay the principal of and interest on the Bonds, or (b) to restrain or enjoin development of the Property. 8. Except as set forth in the Preliminary Official Statement, no litigation is pending with service of process to Lennar Homes, to the Actual Knowledge of the Undersigned, no litigation is pending with service of process to any Affiliate having been accomplished, and, to the Actual Knowledge of the Undersigned, no litigation is threatened against the Lennar Optionees or any Affiliate involving the Lennar Optionees or any Affiliate, or any of the property or assets under the control of the Lennar Optionees or any Affiliate that involves the possibility of any judgment or uninsured liability which may result in any material adverse change in the assets or funds held by the Lennar Optionees or any Affiliate that would materially and adversely affect the Lennar Optionees' ability to develop the Property or to pay Special Taxes. 9. As of the date thereof, but solely with respect to information regarding Lennar Homes, the Property (including the proposed development and ownership thereof), Lennar Homes development plan, Lennar Homes financing plan, Lennar Homes lenders secured by land within the District, if any, and the contractual arrangements of Lennar Homes LLC (but excluding, in all cases, information on William Lyon Homes, Inc., PLC Harveston LLC and Christopher Homes, LLC and their development and financing plans) and subject to the exclusions set forth below, the information contained in the Preliminary Official Statement under the captions "INTRODUCTION — The Community Facilities District" (excluding therefrom the first two paragraphs for which no certification is made) and "THE COMMUNITY FACILITIES DISTRICT," and "PROPERTY OWNERSHIP" (excluding therefrom information under the subcaptions "— William Lyon Homes, Inc.," "PLC Harveston, LLC; Christopher Homes, Inc.," " — Direct and Overlapping Debt," " — Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," " — Overlapping Community Facilities and Assessment Districts," " — Other Overlapping Direct Assessments,""— Estimated Assessed Value -to -Lien Ratios,"" —Transportation Uniform Mitigation Fee; Multi -Species Habitat Conservation Plan," "— Market Absorption Study," and "— Appraised Property Value" for which no certification is made), is true and correct in all material respects and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 10. Lennar Homes has full corporate power and authority to develop the Property, to own any portion of the Property it acquires and to carry on its business as presently conducted and as described in the Preliminary Official Statement. 11. Lennar Homes covenants that, while the Bonds or any refunding obligations related thereto are outstanding, Lennar Homes will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of Ordinance No. 2003-02 of the Authority levying Special Taxes within the District, to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax lien relating thereto. The foregoing covenant shall not prevent Lennar Homes in any way from bringing any other action, suit or proceeding including, without limitation, an action or suit contending that the Special Tax has not been levied in accordance with the methodologies contained in the District's Rate and Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an action or suit with respect to the application or use of the Special Taxes levied and collected, or an action or suit to enforce the obligations of the Authority under the Resolution of Issuance, the Fiscal Agent Agreement or any agreements with the Authority, the City and/or the District for which Lennar Homes is a party or beneficiary. 12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, no other public debt secured by a tax or assessment on the Property exists or is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed that include any portion of the Property. 13. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, Lennar Homes and its Affiliates have not in the last five years defaulted in payment of, and are not currently delinquent on, any ad valorem, assessment or special tax obligations in California in any material amount. 14. Lennar Homes consents to the issuance of the Bonds. Lennar Homes acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official Statement, provided that nothing in this statement modifies any right or obligation of the parties under any other agreement. 15. Lennar Homes intends to comply with the provision of Government Code Section 53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or portions thereof that it takes title to or develops. 16. Lennar Homes acknowledges that interest onthe Bonds is estimated to be capitalized through September 1, 2005 and that the Special Tax levies on Developed Property will commence in Fiscal Year 2005-06 (commencing with the November 1, 2005 tax installment) in order to pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the District. 17. Lennar Homes is solvent and no proceedings are pending or, to the Actual Knowledge of the Undersigned, threatened in which Lennar Homes may be adjudicated as bankrupt or discharged from any and all of its debts or obligations or granted an extension of time to pay its debts or obligations or a reorganization or readjustment of its debts. 18. To the Actual Knowledge of the Undersigned, Lennar Corporation, a Delaware corporation ("Lennar Corporation"), is solvent and no proceedings are pending, or to the Actual Knowledge of the Undersigned, threatened in which Lennar Corporation may be adjudicated as bankrupt or discharged from any or all of its debts or obligations, or granted an extension of time to pay their respective debts or obligations, or be allowed to reorganize or readjust its debts or obligations. 19. To the Actual Knowledge of the Undersigned, the Lennar Optionees have not filed for, nor are there current proceedings for the reassessment of, the assessed value of the Property. 20. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits, actions or contingent liabilities among Lennar Homes, its Affiliates or any contractors working on the development of the Property which may materially and adversely affect the development of the Property or the payment of the Special Taxes on the Property. 21. Based upon the current development plans,including, without limitation, the current budget and subject to economic conditions and risks generally inherent in the development of real property, to the Actual Knowledge of the Undersigned, the Lennar Optionees will have sufficient funds to carry on their business as presently conducted and as described in the Preliminary Official Statement and to pay Special Taxes assessed against the Property and neither the Authority nor the District will be required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due to the Lennar Optionees' nonpayment of Special Taxes. However, Lennar Homes and its Affiliates are not obligated to make any additional capital contribution or loan to Lennar Homes at any time and Lennar Homes reserves the right to change its plan at any time without notice. 22. All information submitted in writing by, or on behalf of, Lennar Homes to the Authority, the District, the Special Tax Consultant, Stephen G. White, MAI (the "Appraiser"), Disclosure Counsel or the Underwriter in connection with the issuance of the Bonds, was, at the time of submission, to the Actual Knowledge of the Undersigned, true and correct. 23. To the Actual Knowledge of the Undersigned, there are no endangered species, hazardous substances or archaeological resources relating to the Property which could have a significant impact on Lennar Homes' ability to pay Special Taxes or to sell or develop all or any portion of Lennar Homes' Property. 24. As to information indicated in Section 9 hereof concerning Lennar Homes and the development of the Property, and subject to the limitations and exclusions set forth in Section 9, Lennar Homes agrees to indemnify and hold harmless, to the extent permitted by law, the Authority, the District, and their officials and employees, and each person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims, damages or liabilities, joint or several, to which such indemnified party may become subject underany statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for any reasonable legal or other expense incurred by it in connection with investigating any claims against it and defending any actions, insofar as such losses, claims, damages, liabilities or actions arise out of, or are based upon, any untrue statement of a material fact or the omission to state a material fact, in the final Official Statement, as of its date or in any continuing disclosure statement, as of its date, provided by or on behalf of Lennar Homes, a material fact necessary to make the statement therein, in light ofthe circumstances under which it was made not misleading. This indemnity provision shall not be construed as a limitation on any other liability which Lennar Homes may otherwise have to any indemnified party, provided that in no event shall Lennar Homes be obligated for double indemnification nor for the negligence or wilful misconduct of another. 25. If between the date hereof and the date of the Closing, to the Actual Knowledge of the Undersigned, any event relating to or affecting the Lennar Optionees, their Affiliates, or the development of the Property shall occur which might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, Lennar Homes shall notify the Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, Lennar Homes shall cooperate with the Authority in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter. 26. For the "underwriting period," as defined in the Bond Purchase Agreement, if any event relating to or affecting the Lennar Optionees, their Affiliates, or the development of the Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, Lennar Homes shall cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to the Underwriter and counsel to the Authority which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading. 27. Lennar Homes agrees to deliver a Certificate dated the date of issuance of the Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit A, provided, that, if any event relating to or affecting the Lennar Optionees, their Affiliates, or the development of the Property shall occur as a result of which it is necessary to modify the Certificate, Lennar Homes agrees to deliver the Certificate revised to reflect such event. 28. On behalf of LennarHomes, I have reviewed the contents of this Certificate and have met with counsel to Lennar Homes, for the purpose of discussing the meaning of its contents. LENNAR HOMES OF CALIFORNIA, INC., a California corporation By: _ Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CERTIFICATE OF US HOME CORPORATION August 11, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston II) Stone & Youngberg LLC Ladies and Gentlemen Reference is made to Temecula Public Financing Authority (the "Authority") Community Facilities District No. 03-06 (Harveston II) (the "District") Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement to be entered into in connection therewith (the "Bond Purchase Agreement"). This certificate is delivered pursuant to and in satisfaction of Section 3(d)(16) of the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase Agreement. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of US Home Corporation, a Delaware corporation ("US Home"), and the undersigned, on behalf of US Home further certifies as follows: 1. US Home is duly organized and validly existing under the laws of the State of Delaware, registered to transact intrastate business as a foreign corporation and is in good standing in the State of California and has the corporate power and authority to execute and deliver this Certificate, and to undertake all of the transactions on its part described in the Preliminary Official Statement. 2. As set forth inthe Preliminary Official Statement, certain property within the District is owned by US Home and other property is owned by LEN-Inland, LLC, Inc., a Delaware limited liability company ("LEN-Inland, LLC"), which has entered into various agreements with Greystone Homes, Inc., a Delaware corporation ("Greystone Homes"), Lennar Homes of California, a California corporation ("Lennar Homes"), and US Home Corporation, a Delaware corporation ("US Home"), and Greystone Homes, Lennar Homes and US Home will acquire and develop such property. Greystone Homes, Lennar Homes, and US Home are collectively referred to herein as the "Lennar Optionees." The property owned by LEN-Inland, LLC, and US Home is referred to herein as the "Property." The Lennar Optionees are, and US Home' current expectation is that the Lennar Optionees shall remain, the parties responsible for land use planning and backbone infrastructure of the Property on behalf of the Lennar Optionees. US Home has not entered into an agreement for development or management ofthe Property by any entity other than as described in the Preliminary Official Statement. 3. Except as described in the Preliminary Official Statement with regard to previous undertakings relating to Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, to the Actual Knowledge ofthe Undersigned', neither ' As used in this certificate, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge that the undersigned currently has or has obtained from an interview with such officers and responsible employees of US Home as the undersigned has determined are likely, in the ordinary course of their respective duties, to have knowledge of the matters set forth herein. Other than as set forth in the immediately preceding sentence, with your Greystone Homes nor its Affiliates have materially failed within the past five years to provide periodic continuing disclosure reports or notices of material events with respect to community facilities districts or assessment districts in California. "Affiliate" of another Person (as defined below) means (a) a Person directly or indirectly owning, controlling, or holding with power to vote, 15% or more of the outstanding voting securities of such other Person, (b) any Person 15% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held with power to vote, by such other Person, and (c) any Person directly or indirectly controlling, controlled by or under common control with such other Person; for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a Person, unless such power is solely the result of an official position with such Person. "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. 4. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned (a) US Home and its Affiliates are not in breach of or in default under any applicable law or administrative regulation of the State of California or the United States, or any agency or instrumentality of either, which breach or default would in any way materially and adversely affect the ability of the Lennar Optionees to pay Special Taxes or the Special Taxes under the Option Agreements (as defined in the Preliminary Official Statement), and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing which with the passage of time or giving of notice, or both, would constitute such a breach or default. 5. Except as disclosed in the Preliminary Official Statement, (a) to the Actual Knowledge of the Undersigned, US Home and its Affiliates are not in breach of or in default under any applicablejudgment ordecree or any loan agreement, option agreement, development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which US Home or its Affiliates are, or will upon issuance of the Bonds be, a party or otherwise subject, which breach or default would in any way materially and adversely affect the Lennar Optionees ability to develop the Property or to pay the Special Taxes, and (b) to the Actual Knowledge of the Undersigned, no event has occurred and is continuing that with the passage of time or giving of notice, or both, would constitute such a breach or default. 6. Except as described in the Preliminary Official Statement, there are no material loans outstanding and unpaid and no material lines of credit of US Home or its Affiliates that are secured by an interest in the Property. 7. Except as set forth in the Preliminary Official Statement, no claim, dispute, suit, action, contingent liability or litigation is pending (with service of process to US Home having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened (a) to restrain or enjoin collection of Special Taxes or other sums pledged orto be pledged to pay the principal of and interest on the Bonds, or (b) to restrain or enjoin development of the Property. 8. Except as set forth in the Preliminary Official Statement, no litigation is pending with service of process to US Home, to the Actual Knowledge of the Undersigned, no litigation is pending with service of process to any Affiliate having been accomplished, and, to the Actual Knowledge of the Undersigned, no litigation is threatened against US Home or any Affiliate involving US Home or any Affiliate, or any of the property or assets under the control of US Home or any Affiliate that involves the possibility of any judgment or uninsured liability which may result in any material adverse change in the assets or funds held by US Home or any Affiliate that would materially and adversely affect US Home's ability to develop the Property or to pay Special Taxes. permission, the undersigned has not conducted any additional inspection or inquiry. 9. As of the date thereof, but solely with respect to information regarding US Home, the Property (including the proposed development and ownership thereof), US Home's development plan, US Home's financing plan, US Home's lenders secured by land within the District, if any, and the contractual arrangements of US Home LLC (but excluding, in all cases, information on William Lyon Homes, Inc., PLC Harveston LLC and Christopher Homes, LLC and their development and financing plans) and subject to the exclusions set forth below, the information contained in the Preliminary Official Statement under the captions "INTRODUCTION —The Community Facilities District" (excluding therefrom the first two paragraphs for which no certification is made) and "THE COMMUNITY FACILITIES DISTRICT," and "PROPERTY OWNERSHIP" (excluding therefrom information under the subcaptions " — William Lyon Homes, Inc.," "PLC Harveston, LLC; Christopher Homes, Inc.,"" —Direct and Overlapping Debt,"" —Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," "— Overlapping Community Facilities and Assessment Districts," " — Other Overlapping Direct Assessments," " — Estimated Assessed Value -to -Lien Ratios," " — Transportation Uniform Mitigation Fee; Multi -Species Habitat Conservation Plan," "— Market Absorption Study," and"— Appraised Property Value" for which no certification is made), is true and correct in all material respects and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 10. US Home has full corporate powerand authority to develop the Property, to own any portion of the Property it acquires and to carry on its business as presently conducted and as described in the Preliminary Official Statement. II. US Home covenants that, while the Bonds or any refunding obligations related thereto are outstanding, US Home will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of Ordinance No. 2003-02 of the Authority levying Special Taxes within the District, to invalidate the District or any of the Bonds, or to invalidate the special tax liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation ofthe notices ofspecial tax lien relating thereto. The foregoing covenant shall not prevent US Home in any way from bringing any other action, suit or proceeding including, without limitation, an action or suit contending that the Special Tax has not been levied in accordance with the methodologies contained in the District's Rate and Method of Apportionment of Special Taxes pursuant to which the Special Taxes are levied, an action or suit with respect to the application or use of the Special Taxes levied and collected, or an action or suit to enforce the obligations of the Authority under the Resolution of Issuance, the Fiscal Agent Agreement or any agreements with the Authority, the City and/or the District for which US Home is a party or beneficiary. 12. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, no other public debt secured by a tax or assessment on the Property exists or is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed that include any portion of the Property. 13. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, US Home and its Affiliates have not in the last five years defaulted in payment of, and are not currently delinquent on, any ad valorem, assessment or special tax obligations in California in any material amount. 14. US Home consents to the issuance of the Bonds. US Home acknowledges and agrees that the proceeds of the Bonds will be used as described in the Official Statement, provided that nothing in this statement modifies any right or obligation of the parties under any other agreement. 15. US Home intends to comply with the provision of Government Code Section 53341.5 relating to the Notice of Special Tax in connection with the sale of the Property, or portions thereof that it takes title to or develops. 16. US Home acknowledges that interest on the Bonds is estimated to be capitalized through September 1, 2005 and that the Special Tax levies on Developed Property will commence in Fiscal Year 2005-06 (commencing with the November 1, 2005 tax installment) in order to pay for interest on the Bonds and to pay a portion of the administrative expenses relating to the District. 17. US Home is solvent and no proceedings are pending or, to the Actual Knowledge of the Undersigned, threatened in which US Home may be adjudicated as bankrupt or discharged from any and all of its debts or obligations or granted an extension of time to pay its debts or obligations or a reorganization or readjustment of its debts. 18. To the Actual Knowledge of the Undersigned, Lennar Corporation, a Delaware corporation ("Lennar Corporation"), is solvent and no proceedings are pending, or to the Actual Knowledge of the Undersigned, threatened in which Lennar Corporation may be adjudicated as bankrupt or discharged from any or all of its debts or obligations, or granted an extension of time to pay their respective debts or obligations, or be allowed to reorganize or readjust its debts or obligations. 19. To the Actual Knowledge of the Undersigned, the Lennar Optionees have not filed for, nor are there current proceedings for the reassessment of, the assessed value of the Property. 20. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits, actions or contingent liabilities among US Home, its Affiliates or any contractors working on the development of the Property which may materially and adversely affect the development of the Property or the payment of the Special Taxes on the Property. 21. Based upon the current development plans, including, without limitation, the current budget and subject to economic conditions and risks generally inherent in the development of real property, to the Actual Knowledge of the Undersigned, the Lennar Optionees will have sufficient funds to carry on their business as presently conducted and as described in the Preliminary Official Statement and to pay Special Taxes assessed against the Property and neither the Authority nor the District will be required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due to the Lennar Optionees' nonpayment of Special Taxes. However, US Home and its Affiliates are not obligated to make any additional capital contribution or loan to US Home at any time and US Home reserves the right to change its plan at any time without notice. 22. All information submitted in writing by, or on behalf of, US Home to the Authority, the District, the Special Tax Consultant, Stephen G. White, MAI (the "Appraiser"), Disclosure Counsel or the Underwriter in connection with the issuance of the Bonds, was, at the time of submission, to the Actual Knowledge of the Undersigned, true and correct. 23. To the Actual Knowledge of the Undersigned, there are no endangered species, hazardous substances or archaeological resources relating to the Property which could have a significant impact on US Home's ability to pay Special Taxes or to sell or develop all or any portion of US Home's Property. 24. As to information indicated in Section 9 hereof concerning US Home and the development of the Property, and subject to the limitations and exclusions set forth in Section 9, US Home agrees to indemnify and hold harmless, to the extent permitted by law, the Authority, the District, and their officials and employees, and each person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended against any and all losses, claims, damages or liabilities, joint or several, to which such indemnified party may become subject under any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for any reasonable legal or other expense incurred by it in connection with investigating any claims against it and defending any actions, insofar as such losses, claims, damages, liabilities or actions arise out of, or are based upon, any untrue statement of a material fact or the omission to state a material fact, in the final Official Statement, as of its date or in any continuing disclosure statement, as of its date, provided by or on behalf of US Home, a material fact necessary to make the statement therein, in light of the circumstances under which it was made not misleading. This indemnity provision shall not be construed as a limitation on any other liability which US Home may otherwise have to any indemnified party, provided that in no event shall US Home be obligated for double indemnification nor for the negligence or wilful misconduct of another. 25. If between the date hereof and the date of the Closing, to the Actual Knowledge of the Undersigned, any event relating to or affecting the Lennar Optionees, their Affiliates, or the development of the Property shall occur which might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, US Home shall notify the Authority, the District and the Underwriter and if in the opinion of counsel to the Authority or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, US Home shall cooperate with the Authority in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter. 26. For the "underwriting period," as defined in the Bond Purchase Agreement, if any event relating to or affecting the Lennar Optionees, their Affiliates, or the development of the Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Authority, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, US Home shall cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to the Underwriter and counsel to the Authority which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading. 27. US Home agrees to deliver a Certificate dated the date of issuance of the Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit A, provided, that, if any event relating to or affecting the Lennar Optionees, their Affiliates, the development of the Property shall occur as a result of which it is necessary to modify the Certificate, US Home agrees to deliver the Certificate revised to reflect such event. 28. On behalf of US Home, I have reviewed the contents of this Certificate and have met with counsel to US Home, for the purpose of discussing the meaning of its contents. US HOME CORPORATION, a Delaware corporation By: Name: Title: Supplemental Material For TPFA Authority Business Item No. 2 (CFD - Harveston II) Exhibit C - Bond Purchase Agreement TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CLOSING CERTIFICATE OF WILLIAM LYON HOMES, INC. September 1, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston II) Stone & Youngberg LLC Ladies and Gentlemen Reference is made to Community Facilities DistrictNo.03-06 (Harveston II) ofthe Temecula Public Financing Authority Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement dated August 17, 2004 (the "Bond Purchase Agreement') entered into in connection therewith. This certificate is delivered pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Certificate (the "Certificate") dated August 11, 2004 delivered on behalf of William Lyon Homes, Inc., a California corporation ("William Lyon Homes"), which is attached hereto as Exhibit A. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of William Lyon Homes, and the undersigned, on behalf of William Lyon Homes, further certifies as follows: 1. Each statement made in the Certificate is affirmed and restated as if made on the date hereof. 2. To the Actual Knowledge of the Undersigned, no event has occurred since the date of the Preliminary Official Statement which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of William Lyon Homes, or its Affiliates which would materially and adversely affect the development of the Property or their ability to pay Special Taxes. 3. William Lyon Homes has received the Official Statement relating to the Bonds, and each statement made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to the Official Statement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; EXECUTION PAGE FOLLOWS] Very truly yours, WILLIAM LYON HOMES, INC., a California corporation Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON Il) SPECIAL TAX BONDS, SERIES 2004 CLOSING CERTIFICATE OF PLC HARVESTON, LLC September 1, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston II) Stone & Youngberg LLC Ladies and Gentlemen Reference is made to Community Facilities District No. 03-06 (Harveston 11) ofthe Temecula Public Financing Authority Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement dated August 17, 2004 (the "Bond Purchase Agreement') entered into in connection therewith. This certificate is delivered pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Certificate (the "Certificate") dated August 11, 2004 delivered on behalf of PLC Harveston, LLC, a California limited liability company ("PLC Harveston, LLC"), which is attached hereto as Exhibit A. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of PLC Harveston, LLC, and the undersigned, on behalf of PLC Harveston, LLC, further certifies as follows: Each statement made in the Certificate is affirmed and restated as if made on the date hereof 2. To the Actual Knowledge of the Undersigned, no event has occurred since the date of the Preliminary Official Statement which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of PLC Harveston, LLC or its Affiliates which would materially and adversely affect the development of the Property or its ability to pay Special Taxes. 3. PLC Harveston, LLC has received the Official Statement relating to the Bonds, and each statement made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to the Official Statement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; EXECUTION PAGE FOLLOWS] Very truly yours, PLC HARVESTON, LLC, a California limited liability company BY: Christopher Homes, Inc., a corporation ITS: Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CLOSING CERTIFICATE OF GREYSTONE HOMES, INC. September 1, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston 11) Stone & Youngberg LLC Ladies and Gentlemen Reference is made to Community Facilities District No. 03-06 (Harveston II) of the Temecula Public Financing Authority Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement dated August 17, 2004 (the "Bond Purchase Agreement') entered into in connection therewith. This certificate is delivered pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Certificate (the "Certificate") dated August 11, 2004 delivered on behalf of Greystone Homes, Inc., a Delaware corporation ("Greystone Homes"), which is attached hereto as Exhibit A. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer ofGreystone Homes, and the undersigned, on behalf of Greystone Homes, further certifies as follows: 1. Each statement made in the Certificate is affirmed and restated as if made on the date hereof. 2. To the Actual Knowledge of the Undersigned, no event has occurred since the date of the Preliminary Official Statement which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of the Lennar Optionees, or their Affiliates which would materially and adversely affect the development of the Property or their ability to pay Special Taxes. 3. Greystone Homes has received the Official Statement relating to the Bonds, and each statement made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to the Official Statement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; EXECUTION PAGE FOLLOWS] Very truly yours, GREYSTONE HOMES, INC., a Delaware corporation Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CLOSING CERTIFICATE OF HARVESTON, LLC September I, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston 11) Stone & Youngberg LLC Ladies and Gentlemen: Reference is made to Community Facilities District No. 03-06 (Harveston 11) of the Temecula Public Financing Authority Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement dated August 17, 2004 (the "Bond Purchase Agreement") entered into in connection therewith. This certificate is delivered pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Certificate (the "Certificate") dated August 11, 2004 delivered on behalf of Harveston, LLC, a Delaware limited liability company ("Harveston, LLC"), which is attached hereto as Exhibit A. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of Harveston, LLC, and the undersigned, on behalf of Harveston, LLC, further certifies as follows: Each statement made in the Certificate is affirmed and restated as if made on the date hereof. 2. To the Actual Knowledge of the Undersigned, no event has occurred since the date of the Preliminary Official Statement which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of Harveston, LLC or its Affiliates, which would materially and adversely affect the development of the Property or their ability to pay Special Taxes. 3. Harveston, LLC has received the Official Statement relating to the Bonds, and each statement made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to the Official Statement. 4. Each statement made in the Certificate referring to the proposed Developer Continuing Disclosure Agreement is affirmed as if it relates to the Developer Continuing Disclosure Agreement as executed and delivered. 5. Harveston, LLC has duly authorized the execution and delivery of the Developer Continuing Disclosure Agreement, has the authority to perform the obligations on its part to be performed thereunder, and the Developer Continuing Disclosure Agreement constitutes the legal, valid and binding obligations of Harveston, LLC, enforceable against it in accordance with its terms. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; EXECUTION PAGE FOLLOWS] Very truly yours, HARVESTON, LLC, a Delaware limited liability company By: LENNAR HOMES OF CALIFORNIA, INC., a California corporation. its Administrative Member Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CLOSING CERTIFICATE OF LEN-INLAND, LLC September 1, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston 11) Stone & Youngberg LLC Ladies and Gentlemen: Reference is made to Community Facilities District No.03-06 (Harveston II) of the Temecula Public Financing Authority Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement dated August 17, 2004 (the "Bond Purchase Agreement') entered into in connection therewith. This certificate is delivered pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Certificate (the "Certificate") dated August 11, 2004 delivered on behalf of LEN-Inland, LLC, a Delaware limited liability company ("LEN-Inland, LLC"), which is attached hereto as Exhibit A. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of LEN-Inland, LLC, and the undersigned, on behalf of LEN-Inland, LLC, further certifies as follows: 1. Each statement made in the Certificate is affirmed and restated as if made on the date hereof. 2. To the Actual Knowledge of the Undersigned, no event has occurred since the date of the Preliminary Official Statement which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of LEN-Inland, LLC or its Affiliates which would materially and adversely affect the development of the Property or their ability to pay Special Taxes. 3. LEN-Inland, LLC has received the Official Statement relating to the Bonds, and each statement made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to the Official Statement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; EXECUTION PAGE FOLLOWS] Very truly yours, LEN-INLAND, LLC, a Delaware limited liability company By: Lennar Homes of California, Inc. a California corporation, its Manager go Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CLOSING CERTIFICATE OF LENNAR HOMES OF CALIFORNIA, INC. September 1, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston 11) Stone & Youngberg LLC Ladies and Gentlemen: Reference is made to Community Facilities District No. 03-06 (Harveston 11) of the Temecula Public Financing Authority Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement dated August 17, 2004 (the "Bond Purchase Agreement') entered into in connection therewith. This certificate is delivered pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Certificate (the "Certificate") dated August 11, 2004 delivered on behalf of Lennar Homes of California, Inc., a California corporation ("Lennar Homes"), which is attached hereto as Exhibit A. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of Lennar Homes, and the undersigned, on behalf of Lennar Homes, further certifies as follows: 1. Each statement made in the Certificate is affirmed and restated as if made on the date hereof. 2. To the Actual Knowledge of the Undersigned, no event has occurred since the date of the Preliminary Official Statement which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of the Lennar Optionees, or their Affiliates which would materially and adversely affect the development of the Property or their ability to pay Special Taxes. 3. Lennar Homes has received the Official Statement relating to the Bonds, and each statement made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to the Official Statement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; EXECUTION PAGE FOLLOWS] Very truly yours, LENNAR HOMES OF CALIFORNIA, INC., a California corporation 0 Name: Title: TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO.03-06 (HARVESTON II) SPECIAL TAX BONDS, SERIES 2004 CLOSING CERTIFICATE OF US HOME CORPORATION September 1, 2004 To: Temecula Public Financing Authority on behalf of Community Facilities District No. 03-06 (Harveston ❑) Stone & Youngberg LLC Ladies and Gentlemen: Reference is made to Community Facilities District No. 03-06 (Harveston II) ofthe Temecula Public Financing Authority Special Tax Bonds, Series 2004 and to the Bond Purchase Agreement dated August 17, 2004 (the "Bond Purchase Agreement') entered into in connection therewith. This certificate is delivered pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Certificate (the "Certificate") dated August 11, 2004 delivered on behalf of US Home Corporation, a Delaware corporation ("US Home"), which is attached hereto as Exhibit A. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer of US Home, and the undersigned, on behalf of US Home, further certifies as follows: 1. Each statement made in the Certificate is affirmed and restated as if made on the date hereof. 2. To the Actual Knowledge of the Undersigned, no event has occurred since the date of the Preliminary Official Statement which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of the Lennar Optionees, or their Affiliates which would materially and adversely affect the development of the Property or their ability to pay Special Taxes. 3. US Home has received the Official Statement relating to the Bonds, and each statement made in the Certificate referring to the Preliminary Official Statement is affirmed as if it relates to the Official Statement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; EXECUTION PAGE FOLLOWS] Very truly yours, US HOME CORPORATION, a Delaware corporation LN Name: Title: EXHIBIT D FORMS OF OPINION OF COUNSEL TO HARVESTON,LLC D-1 Supplemental Material For TPFA Authority Business Item No. 2 (CFO - Harveston II) Exhibit O - Bond Purchase Agreement 10100 SANTA MONICA BOULEVARD SUITE 2300 LOS ANGELES, CA 90067-4008 310.203.1100 F: 310.286.6672 September 1, 2004 Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Temecula, California Temecula Public Financing Authority Temecula, California Stone & Youngberg LLC Los Angeles, California Re: $ Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 Ladies and Gentlemen: We have acted as special counsel to each of Harveston, LLC, a Delaware limited liability company ("Harveston, LLC"), Lennar Homes of California, Inc., a California corporation ("Lennar Homes"), Greystone Homes, Inc., a Delaware corporation (`Greystone Homes"), and US Home Corporation, a Delaware corporation ("US Home" and together with Lennar Homes, and Greystone Homes, the "Lennar Optionees"), in connection with Harveston, LLC and the Lennar Optionees' participation in the issuance by Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) (the "District") of its Special Tax Bonds, Series 2004 (the "Bonds"). This opinion is provided for the benefit of Stone & Youngberg LLC (the "Underwriter"), the Temecula Public Financing Authority (the "Authority") and the District pursuant to Section 3(d)(__) of that certain Bond Purchase Agreement, dated August , 2004 (the "Purchase Agreement"), by and between the Authority, on behalf of the District, and the Underwriter. September 1, 2004 Page 2 We advise you that we are not general counsel to Harveston, LLC or any of the Lennar Optionees and do not represent Harveston, LLC or any of the Lennar Optionees on a continuing basis. Rather, we represent some or all of Harveston, LLC and the Lennar Optionees as requested from time to time on specific matters. In rendering the opinions hereinafter expressed, we have reviewed and examined the following documents: A. the Purchase Agreement; B. the final Official Statement dated August 2004 relating to the Bonds (the "Official Statement'); C. the Developer Continuing Disclosure Agreement, dated as of August 1, 2004, by and between Harveston, LLC and U.S. Bank National Association, as both Dissemination Agent and Fiscal Agent (the "Continuing Disclosure Agreement'); D. the Acquisition Agreement, dated as of August, 1, 2002, by and between the Authority and Harveston, LLC, as supplemented by Supplement No. 1 to Acquisition Agreement dated as of November 25, 2003, by and between the Authority and Harveston, LLC (collectively, the "Acquisition Agreement'); E. the Option and Right of First Refusal Agreement dated as of November 10, 2003, by and between LEN-Inland, LLC, a Delaware corporation ("LEN-Inland, LLC"), and Lennar Homes (the "Lennar Homes Option Agreement'); F. the Option and Right of First Refusal Agreement dated as of N ovember 10, 2 003, b y a nd b etween LEN-Inland, LLC a nd G reystone H omes ( the "Greystone Homes Option Agreement'); G. the Option and Right of First Refusal Agreement dated as of November 10, 2003, by and between LEN-Inland, LLC and US Home (the "US Home Option Agreement") (collectively, the Continuing Disclosure Agreement, the Acquisition Agreement, the Lennar Homes Option Agreement, the Greystone Homes Option Agreement, and the US Home Option Agreement, are referred to herein as the "Developer Agreements"); H. the Certificate of Harveston, LLC set forth in Exhibit "A" attached hereto, the Certificate of Lennar Homes set forth in Exhibit "B" attached hereto, the Certificate of Greystone Homes set forth in Exhibit "C" attached hereto, and the September 1, 2004 Page 3 Certificate of US Home set forth in Exhibit "D" attached hereto, each dated the date hereof and executed by the duly authorized representative of Harveston, LLC and the respective Lennar Optionees (collectively, the "Certificates of Harveston, LLC and the Lennar Optionees"); I. (i) the Certificate of Good Standing for Harveston, LLC, executed by the Delaware Secretary of State on , 2004, (ii) the Certificate of Status of Foreign Limited Liability Company, for Harveston, LLC, executed by the California Secretary of State on , 2004, and (iii) the letter of good standing for H arveston, LLC, e xecuted b y t he C alifomia F ranchise T ax B oard o n 2004 (collectively, the "Harveston, LLC Good Standing Certificates"); J. (i) the Certificate of Status of Domestic Corporation for Lennar Homes, executed by the California Secretary of State on , 2004, and (ii) the letter of good standing for Lennar Homes, executed by the California Franchise Tax Board on 2004 (collectively, the "Lennar Homes Good Standing Certificates"); K. (i) the Certificate of Good Standing for Greystone Homes, executed by the Delaware Secretary of State on , 2004, (ii) the Certificate of Status of Foreign Corporation, for Greystone Homes, executed by the California Secretary of State on 2004, and (iii) the letter of good standing for Greystone Homes, executed by the California Franchise Tax Board on 12004 (collectively, the "Greystone Homes Good Standing Certificates"); L. (i) the Certificate of Good Standing for US Home, executed by the Delaware Secretary of State on 2004, (ii) the Certificate of Status of Foreign Corporation, for US Home, executed by the California Secretary of State on , 2004, and (iii) the letter of good standing for US Home, executed by the California Franchise Tax Board on 2004 (collectively, the "U.S. Home Good Standing Certificates"); M. (i) the Certificate of Formation of Harveston, LLC, filed May 30, 2002, certified to be true and correct by the Delaware Secretary of State on , 2004, including Articles of Organization, (ii) a copy of the Operating Agreement for Harveston, LLC, effective as of June 6, 2002, together with the First Amendment to Operating Agreement dated June 21, 2002 and the Second Amendment to Operating Agreement dated (collectively, the "Operating Agreement') certified to be true and correct by an authorized representative of Harveston, LLC, September 1, 2004 Page 4 (iii) Form LLC- — , certified to be true and correct by the California Secretary of State on , 2004 (collectively, the "Harveston, LLC Organizational Documents"); N. (i) a copy of the Articles of Incorporation for Lennar Homes, certified to be true and correct by the California Secretary of State on , 2004, and (ii) a copy of the Bylaws of Lennar Homes, dated as of , certified to be true and correct by an authorized representative of Lennar Homes (collectively, the "Lennar Homes Organizational Documents"); O. (i) a copy of the Certificate of Incorporation for Greystone Homes, certified to be true and correct by the Delaware Secretary of State on 2004, and (ii) a copy of the Bylaws of Greystone Homes, certified to be true and correct by an authorized representative of Greystone Homes (collectively, the "Greystone Homes Organizational Documents"); P. (i) a copy of the Certificate of Incorporation for US Home, certified to be true and correct by the Delaware Secretary of State on 2004, and (ii) a copy of the Bylaws of US Home, certified to be true and correct by an authorized representative of US Home (collectively, the "US Home Organizational Documents"); Q. the Closing Certificates of Harveston, LLC and the Lennar Optionees delivered by Harveston, LLC and each of the Lennar Optionees pursuant to Section 3(d)__) of the Purchase Agreement (the "Harveston, LLC and Lennar Optionees' Closing Certificates"); and R. the certificates of public officials and other persons required under the Purchase Agreement (the Certificates of Harveston, LLC and the Lennar Optionees, the Harveston, LLC and Lennar Optionees' Closing Certificates, and the certificates described in this sentence are collectively referred to herein as the "Certificates"), and such other documents as we deemed relevant for the purposes of this opinion. In conducting our examination, we have assumed, without investigation: (i) the genuineness of all signatures (other than those of Harveston, LLC and the Lennar Optionees), the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies, and the authenticity of the originals from which such copies were made; (ii) the accuracy of the representations and warranties of the factual matters made by Harveston, LLC and any of the Lennar Optionees in the Developer Agreements, the Certificates and any other September 1, 2004 Page 5 certificates and opinions delivered by any party in connection with this transaction; (iii) the legal capacity of all natural persons; (iv) as to documents executed by parties other than Harveston, LLC and the Lennar Optionees, such parties' power to enter into and perform the obligations under such documents, and that such documents have been duly authorized, executed and delivered by, and are binding upon and enforceable against, such parties; (v) that there are no oral or written terms or conditions (other than as expressed in the Developer Documents) agreed to by Harveston, LLC or any of the Lennar Optionees and the other parties to the Developer Documents (the "Other Parties") or by the Other Parties and any other party, which would expand or modify the respective rights and obligations of Harveston, LLC, any of the Lennar Optionees or the Other Parties set forth in the Developer Documents or which would have an effect on the opinions rendered herein; and (vi) that the Other Parties are not subject to any statute, rule, or regulation, or to any impediment to which contracting parties are generally not subject, which requires any of them to obtain the consent of, or to make a declaration or filing with, any governmental authority in connection with the execution and delivery of the Developer Documents. We have performed a computerized litigation search of the records (civil filings only) of the Riverside County Superior Court, the San Bernardino County Superior Court, the Los Angeles County Superior Court, the Orange County Superior Court, the U.S. Bankruptcy Court, Central District of California, and the Federal District Court, Central District of California, regarding the existence of pending litigation with the words "Harveston, LLC," "Lennar Homes," "Greystone Homes," "US Home," and "Lennar Corporation" in the name of a plaintiff, defendant, or a debtor in such courts, each search being performed between the dates of , 2004 and , 2004 (collectively, the "Litigation Searches"). We have delivered the Litigation Searches to Harveston, LLC and the respective Lennar Optionees and requested that Harveston, LLC and the Lennar Optionees review the appropriate Litigation Searches, and all other pending litigation, if any, which is not listed in the Litigation Searches, and determine the effect or impact that any matters identified in the Litigation Searches and all other litigation (if any) would have on the obligations of Harveston, LLC and the Lennar Optionees with respect to their respective duties and obligations under the Developer Agreements. After review, Harveston, LLC and each of the Lennar Optionees determined that the representations set forth in paragraph 5 of the respective Certificates of Harveston, LLC and the Lennar Optionees are fair and accurate. In rendering our opinion in paragraph 10 below, we have, with your consent, relied on the Litigation Searches and the representations set forth in paragraph 5 of each of the Certificates of Harveston, LLC and the Lennar Optionees without undertaking any independent investigation. September 1, 2004 Page 6 In examining the Developer Documents, we have assumed with your permission, and without investigation, that, upon execution by the Other Parties, if any, the Developer Documents will be the legally valid and binding agreements of the applicable Other P arties, enforceable against a ach o f s uch Other P arties i n accordance with their respective terms, and that the Other Parties will seek to enforce their respective rights under the Developer Documents only in good faith, in commercially reasonable circumstances and in a commercially reasonable manner. Whenever a statement concerning factual matters herein is qualified by the phrase `bur knowledge," it is intended to indicate that, during the course of our representation of Harveston, LLC and the Lennar Optionees in connection with this matter, no information that would give us current actual knowledge of the inaccuracy of such factual statements has come to the attention of the attorneys in our firm who have been involved with our representation of Harveston, LLC or the Lennar Optionees in connection with this matter. Please be advised that only Robert M. Haight, Jr. and have been so involved. Other than our review of the documents listed above, and our determining the knowledge of the foregoing lawyers who have performed legal services for Harveston, LLC and the Lennar Optionees in connection with this transaction, we have not undertaken any factual investigation, and any limited inquiry undertaken by us during the preparation of this opinion letter should not be regarded as such an investigation. No inference concerning our knowledge of any factual matters bearing on the accuracy of any such factual statement should be drawn from our limited representation of Harveston, LLC and the Lennar Optionees. We have not made or undertaken to make any investigation as to the state of title to the property within the District, and we express no opinion with respect to such title. We have made such examination of California law and the law of the United States of America as we deem relevant for the purposes of this opinion letter. We have not considered the effect, if any, of the laws of any other jurisdiction upon the matters covered by this opinion letter. Based on the foregoing and subject to the assumptions and qualifications set forth in this letter, it is our opinion that: (1) Based solely on the Harveston, LLC Good Standing Certificates, Harveston, LLC was duly formed as a limited liability company, is in good standing and has legal existence under the law of the State of Delaware, and is registered to transact intrastate business as a foreign limited liability company and is in good standing in the State of California. September 1, 2004 Page 7 (2) Based solely on the Lennar Homes Good Standing Certificates, Lennar Homes is duly formed as a corporation and is in good standing under the laws of the State of California. (3) Based solely on the Greystone Homes Good Standing Certificates, Greystone Homes was duly incorporated, is in good standing and has legal corporate existence under the laws of the State of Delaware, and is registered to transact intrastate business as a foreign corporation and is in good standing in the State of California. (4) Based solely on the US Home Good Standing Certificates, US Home was duly incorporated, is in good standing and has legal corporate existence under the laws of the State of Delaware, and is registered to transact intrastate business as a foreign corporation and is in good standing in the State of California. (5) Harveston, LLC has the corporate power and authority to execute, deliver, and perform its obligations under the Developer Documents to which it is a party, has duly authorized, executed, and delivered the Developer Documents to which it is a party, and has authorized the performance of its respective duties and obligations thereunder. (6) Lermar Homes has the corporate power and authority to execute, deliver, and perform its obligations under the Developer Documents to which it is a party, has duly authorized, executed, and delivered the Developer Documents to which it is a party, and has authorized the performance of its respective duties and obligations thereunder. (7) Greystone Homes has the corporate power and authority to execute, deliver, and perform its obligations under the Developer Documents to which it is a party, has duly authorized, executed, and delivered the Developer Documents to which it is a party, and has authorized the performance of its respective duties and obligations thereunder. (8) US Home has the corporate power and authority to execute, deliver, and perform its obligations under the Developer Documents to which it is a party, has duly authorized, executed, and delivered the Developer Documents to which it is a party, and has authorized the performance of its respective duties and obligations thereunder. (9) Based solely on the Litigation Searches and the Certificates of Harveston, L LC and the L ennar Optionees, and other than as disclosed in the Official September 1, 2004 Page 8 Statement, there is no litigation pending or threatened against or affecting Harveston, LLC or the Lennar Optionees (a) which affects or seeks to prohibit, restrain or enjoin the development by Harveston, LLC or the Lennar Optionees proposed to be developed by Harveston, LLC or the Lennar Optionees within the District, or (b) in which Harveston, LLC or the Lennar Optionees may be adjudicated as bankrupt or discharged from any or all of its debts or obligations or granted an extension of time to pay their respective debts or a reorganization or readjustment of their respective debts, or (c) which seeks to grant an extension of time to pay Harveston, LLC or the Lennar Optionees' debts, or (d) seeks to effect a reorganization or readjustment of Harveston, LLC or the Lennar Optionees' debts. (10) We are not passing upon and do not assume any responsibility for the accuracy, completeness, or fairness of any of the statements contained in the Official Statement and make no representation that we have independently verified the accuracy, completeness, or fairness of any such statements. However, in our capacity as special counsel to Harveston, LLC and the Lennar Optionees, we met in conferences with representatives of Harveston, LLC and the Lennar Optionees, the District and others, during which conferences the contents of the Official Statement and related matters were discussed. B ased solely on our knowledge and the Certificates o f Harveston, LLC or Lennar Optionees, we advise you that no information came to the attention of the attorneys in our firm rendering services as special counsel to the Harveston, LLC or Lennar Optionees which caused us to believe that, as of the date hereof, the statements contained in the O fficial Statement relating to Harveston, L LC, the L ennar Optionees, LEN-Inland, LLC, or the property in the District owned by Harveston, LLC, LEN-Inland, LLC or the Lennar Optionees (including the proposed development thereof), the Harveston, LLC and Lennar Optionees' development plans, the Harveston, LLC and Lennar Optionees' financing plan and the contractual arrangements of Harveston, LLC, the Lennar Optionees and LEN-Inland, LLC, (except that no opinion or belief is expressed as to (i) any financial statements and other financial, statistical or engineering data or forecasts, numbers, charts, estimates, projections, assumptions or expressions of opinion, or (ii) any information about valuation, appraisals, absorption, or environmental matters) under the captions "INTRODUCTION — The Community Facilities District," (excluding therefrom the first two paragraphs for which no opinion is made), "CONTINUING DISCLOSURE — Harveston, LLC," "THE COMMUNITY FACILITIES DISTRICT," "PROPERTY OWNERSHIP" (excluding therefrom information under the subcaptions " — Direct and Overlapping Debt," " — Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," ` — Overlapping Community Facilities and Assessment Districts," "— Other Overlapping Direct Assessments," " — Estimated Assessed Value -To -Lien Ratios," " — Transportation Uniform Mitigation Fee; Multi -Species Habitat Conservation Plan," " — Market September 1, 2004 Page 9 Absorption Study" and " — Appraised Property Value" and for which no opinion is made) and "BONDOWNERS' RISKS — Endangered and Threatened Species" and ` — Hazardous Substances," contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make such statements, in the light of the circumstances under which they were made, not misleading. (11) Based solely on our knowledge and the Certificates of Harveston, LLC and the Lennar Optionees, Harveston, LLC and the Lennar Optionees are not in violation of any provision of, or in default under, the organizational documents or any other agreement or other instrument, the violation or default under which would materially and adversely affect the ability of Harveston, LLC and the Lennar Optionees to complete the proposed development of the property as described in the Official Statement. With respect to the foregoing opinions, you should be aware of the following We express no opinion as to the exclusion from gross income for federal income tax purposes of the interest on the Bonds, or the exemption of the interest on the Bonds from State of California personal income taxes. Except to the limited extent set forth in paragraph 10 above, we express no opinion as to the applicability or effect on the subject transaction of the securities laws of the State of California or of the United States of America, including but not limited to the Securities Act of 1933, as amended. We are licensed to practice law only in the State of California. Accordingly, the foregoing opinions apply only insofar as the laws of the State of California or the United States of America may be concerned, and we express no opinion with respect to the laws of any other jurisdiction. This letter, and the legal opinions herein, are rendered as of the date hereof and are furnished solely for your benefit in connection with the subject transaction, and may not be relied upon for any other purpose or furnished to, used, circulated, quoted or referred to by any other person without our prior written consent, except as contemplated by the Purchase Agreement. This letter is not intended to, and may not, be relied upon by any owners of the Bonds. We bring to your attention the fact that our legal opinions are an expression of professional judgment and are not a guarantee of a result. Our engagement September 1, 2004 Page 10 with respect to this matter has terminated as of the date hereof, and we do not undertake to advise you of any matters that may come to our attention subsequent to the date hereof that may affect our legal opinions expressed herein. This letter is limited to the matters expressly set forth herein, and no opinion is implied or may be inferred beyond the matters expressly stated herein. Respectfully submitted, PILLSBURY WINTHROP LLP RMH/BJG EXHIBIT "A" Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 CERTIFICATE OF HARVESTON, LLC The undersigned, on behalf of Harveston, LLC, a Delaware limited liability company ("Developer"), in connection with the development of certain property (the "Property") located within the boundaries of the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) (the "District') and in connection with the issuance of the above - captioned Bonds (the "Bonds") in the District, has requested that Pillsbury Winthrop LLP (the "Law Firm") issue a legal opinion to the Temecula Public Financing Authority, the District and Stone & Youngberg LLC in connection with the issuance and sale of the Bonds. The legal opinion being issued by the Law Firm (the "Opinion") includes certain assumptions as to factual matters of which the Law Finn has no, or limited, knowledge. Developer is providing the Law Finn with this certificate in order to allow the Law Firm to issue the Opinion. Capitalized terns not defined in this certificate have the respective meanings given those terms in the Opinion. 1. Developer has reviewed the Opinion, and all factual assumptions which support the opinions rendered in the Opinion are true, correct, complete and accurate as of the date hereof. 2. The copies of the Harveston, LLC Organizational Documents delivered to the Law Firm by or on behalf of the Developer are true and complete copies thereof, which remain in full force and effect and have not been amended or modified as of the date hereof. 3. The Developer was duly formed as a limited liability company, is in good standing and has legal existence under the law of the State of Delaware, and is registered to transact intrastate business as a foreign limited liability company and is in good standing in the State of California. 4. The Developer has the corporate power and authority to execute, deliver, and perform its obligations under the Developer Documents to which it is a party, has duly authorized, executed, and delivered the Developer Documents to which it is a party, and has authorized the performance of its respective duties and obligations thereunder. 5. Other than as disclosed in the Official Statement, there is no litigation pending or threatened against or affecting the Developer (including, but not limited to, the actions, if any, described in the computerized litigation search of the records of the Riverside County Superior Court, the San Bernardino County Superior Court, the Los Angeles County Superior Court, the Orange County Superior Court, the U.S. Bankruptcy Court, Central District of California, and the Federal District Court, Central District of California) (a) which affects or seeks to prohibit, A-1 restrain or enjoin the development by the Developer proposed to be developed by the Developer within the District, or (b) in which the Developer may be adjudicated as bankrupt or discharged from any or all of its debts or obligations or granted an extension of time to pay its debts or a reorganization or readjustment of its debts, or (c) which seeks to grant an extension of time to pay the Developer's debts, or (d) seeks to effect a reorganization or readjustment of the Developer's debts. 6. As of the date hereof, the statements contained in the Official Statement relating to Harveston, LLC, the Lennar Optionees, LEN-Inland, LLC or the property in the District owned by Harveston, LLC, the Lennar Optionees or the LEN-Inland, LLC (including the proposed development thereof), the Harveston and Lennar Optionees' development plans, the Harveston, LLC and Lennar Optionees' financing plan and the contractual arrangements of Harveston, LLC, the Lennar Optionees and LEN-Inland, LLC, (except that no opinion or belief is expressed as to (i) any financial statements and other financial, statistical or engineering data or forecasts, numbers, charts, estimates, projections, assumptions or expressions of opinion, or (ii) any information about valuation, appraisals, absorption, or environmental matters) under the captions "INTRODUCTION — The Community Facilities District," (excluding therefrom the first two paragraphs for which no opinion is made), "CONTINUING DISCLOSURE — Harveston, LLC," "THE COMMUNITY FACILITIES DISTRICT," "PROPERTY OWNERSHIP" (excluding therefrom information under the subcaptions " — Direct and Overlapping Debt," " — Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," " — Overlapping Community Facilities and Assessment Districts," "—Other Overlapping Direct Assessments," ` — Estimated Assessed Value -To -Lien Ratios," " — Transportation Uniform Mitigation Fee; Multi -Species Habitat Conservation Plan," " — Market Absorption Study" and " — Appraised Property Value" and for which no opinion is made) and "BONDOWNERS' RISKS — Endangered and Threatened Species" and " — Hazardous Substances," do not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make such statements, in the light of the circumstances under which they were made, not misleading. 7. The Developer is not in violation of any provision of, or in default under, the Developer's organizational documents or any other agreement or other instrument, the violation or default under which would materially and adversely affect the ability of the Developer to complete the proposed development of the property as described in the Official Statement. The foregoing certifications are made as representations of fact only and are not meant to constitute legal conclusions. As representations of fact, the foregoing statements are intended to be relied upon by the Law Firm in issuing the Opinion. Dated: September 1, 2004 HARVESTON, LLC, a Delaware limited liability company A-2 EXHIBIT E ACKNOWLEDGMENT OF CONSENT TO THE IMPOSITION OF THE SPECIAL TAX FOR TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON 11) AND THE ISSUANCE OF BONDS The undersigned, [TITLE], of a and , a (the "Lender"), hereby acknowledges for the benefit of the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) (the "District") as follows: 1. The undersigned has all authority necessary to execute this Acknowledgment on behalf of the Lender for delivery to the Board of Directors (the `Board") of the Temecula Public Financing Authority (the "Authority") in connection with the imposition by the Board, as the legislative body of the District, of the special tax of the District on the property located within the District, as more particularly described on the attached Exhibit "A" (the "Property") relative to which the Lender has loaned money to Harveston, LLC, a Delaware limited liability company (`Borrower") pursuant to a and other loan documents relating thereto (together, the "Loan Agreement"), and with respect to which the Lender has acquired or received a beneficial security interest in the Property. 2. The Lender has received from the Borrower and the Borrower has made available to the Lender the Notice of Special Tax Lien (Recorded December 11, 2003, as Document No. 2003-970556), including the attached Rate and Method of Apportionment of the Special Tax and the Preliminary Official Statement regarding the issuance of bonds of the District to be secured by such tax, pursuant to the Mello - Roos Community Facilities Act of 1982, as amended (Sections 53311 et seq. of the Government Code of the State of California) (the "Act'). 3. The Lender hereby acknowledges the imposition of the special tax of the District on the Property in the form, at the rates and in the manner set forth in the Notice of Special Tax Lien. The Lender does not object to the proceedings taken by the Authority to form the District, including the election therefor or the levy of the special tax for any authorized purpose, including but not limited to, the payment of debt service on bonds of the District, provided that the Lender does not waive its rights to object to any levy for other than an authorized purpose or otherwise in violation of the voter authorization referred to herein. 4. The Lender acknowledges that if any default occurs in the payment of the special tax of the District levied against the Property pursuant to Exhibit "A" hereto, the District has the right, subject to provisions of the Act, to foreclose upon the Property. 5. The Lender acknowledges that liens securing the special tax levied against the Property have priority over the Lender's security interest in the Property. 6. To the Lender's actual knowledge, there is no event of default under the Loan Agreement and no event which with notice might constitute an event of default under the Loan Agreement. Date: a By: Name: Title: E-1 By: Name: Title: E-2 APPENDIX F CERTIFICATE OF APPRAISER Stone & Youngberg LLC 515 South Figueroa Street, Suite 1060 Los Angeles, California 90071 Temecula Public Financing Authority 43200 Business Park Drive Temecula, California 92590 Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston 11) 43200 Business Park Drive Temecula, California 92590 The undersigned hereby states and certifies 1. That he is an authorized principal of Stephen G. White, MAI (the "Appraiser") and as such is familiar with the facts herein certified and is authorized and qualified to certify the same. 2. That the Appraiser has prepared an appraisal report dated , 2004(the "Appraisal Report"), on behalf of the Temecula Public Financing Authority (the "Authority") and in connection with the Official Statement dated August, 2004 ("Official Statement"), for Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 (the "Series 2004 Bonds"). 3. That the Appraiser hereby consents to the reproduction and use of the Appraisal Report appended to the Preliminary Official Statement and the Official Statement. The Appraiser also consents to the references to the Appraiser and the Appraisal made in the Preliminary Official Statement and the Official Statement. 4. In the opinion ofthe Appraiser the assumptions made in the Appraisal Report are reasonable. 5. That the Official Statement has been reviewed on behalf of the Appraiser and to the best knowledge of the Appraiser the statements concerning the Appraisal Report and the value of the property contained underthe captions "INTRODUCTION —Appraisal," "INTRODUCTION —Professionals Involved in the Offering," "PROPERTY OWNERSHIP — Estimated Value -to -Lien Ratios and Estimated Special Tax Allocation by Property Ownership," "PROPERTY OWNERSHIP — Appraised Property Value," "BONDOWNERS' RISKS — Failure to Develop Properties," "BONDOWNERS' RISKS — Appraised Values," `BONDOWNERS' RISKS — Hazardous Substances" and "APPENDIX C — Summary Appraisal Report" are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 6. Each of the parcels appraised by the Appraiser is encompassed within the Community Facilities District. F-1 7. That, as of the date of this Certificate, the conclusions set forth in the Appraisal Report included as Appendix C to the Official Statement are confirmed. 8. That, as of the date of the Official Statement and as of the date hereof, the Appraisal Report appended to the Official Statement, to the best of my knowledge and belief, and subject to all of the Assumptions and Limiting Conditions set forth in the Appraisal Report, does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein, in the light of the circumstances under which they were made, not misleading, and no events or occurrences have been ascertained by the undersigned or have come to the undersigned's attention that would substantially change the estimated values stated in the Appraisal Report. However, the undersigned has not performed any procedures since the date of the Appraisal Report to obtain knowledge of such events or occurrences nor is the undersigned obligated to do so in the future. The Underwriter, the Authority and the District, are entitled to rely on the Certificate. Dated: September [I], 2004 STEPHEN G. WHITE, MAI LE F-2 EXHIBIT G CERTIFICATE OF MARKET ABSORPTION CONSULTANT Stone & Youngberg LLC 515 South Figueroa Street, Suite 1060 Los Angeles, California 90071 Temecula Public Financing Authority 43200 Business Park Drive Temecula, California 92590 Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston 11) 43200 Business Park Drive Temecula, California 92590 The undersigned hereby states and certifies I. That he is an authorized officer of Empire Economics, Inc. and as such, is familiar with the facts certified and is authorized and qualified to certify the same. 2. In the opinion of Empire Economics, Inc., the assumptions made in the Market Absorption Study are reasonable. 3. Empire Economics, Inc. is not aware of any event or act which has occurred since the date of the Market Absorption Study which, in its opinion, would materially and adversely affect the conclusions of the Market Absorption Study. 4. We hereby consent to the reproduction of the Market Absorption Study as Appendix D to the Official Statement and to the references to Empire Economics, Inc. and to the Market Absorption Study made in the Official Statement. 5. We hereby certify that as of the date hereof the Market Absorption Study contained in the Official Statement and the statements in the Official Statement under the caption "PROPERTY OWNERSHIP — Market Absorption Study" and of "APPENDIX D — MARKET ABSORPTION STUDY" insofar as such statements purport to summarize the Market Absorption Study, are accurate in all material respects and do not omit to state a material fact necessary in order to make the statements contained therein, in the light of circumstances under which they are made, not misleading and no events or occurrences have been ascertained by Empire Economics, Inc. as have come to its attention that would substantially adversely change the opinions set forth in the Market Absorption Study. We note that in making the foregoing statements that Empire Economics, Inc. has undertaken no additional research with respect to the Project and that the dates of market entry referenced in the Market Absorption Study may be delayed as a result of the delay in commencement of development of the project and that the dates for absorption may experience a corresponding delay as well. G-1 Stone & Youngberg LLC, the Authority and the District are entitled to rely on this Certificate. Dated: September [1], 2004 EMPIRE ECONOMICS, INC. IN tbj August _, 2004 Stone & Youngberg LLC 515 South Figueroa Street, Suite 1060 Los Angeles, California 90071 Re: Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston Il) Special Tax Bonds Series 2004 Ladies and Gentlemen: In connection with the proposed sale to you of Temecula Public Financing Authority (the "Authority") Community Facilities District No. 03-06 (Harveston II) (the "District') Special Tax Bonds, Series 2004 (the "Series 2004 Bonds"), the Authority has delivered to you a Preliminary Official Statement, dated August _, 2004, relating to the Series 2004 Bonds (the "Preliminary Official Statement'). The Authority, for purposes of compliance with Rule I Sc2-12 ofthe Securities and Exchange Commission, deems the Preliminary Official Statement to be final as of its date, except for the omission of no more than the following information: the offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity, dates of mandatory sinking fund payments, delivery dates, and any other terms of the Series 2004 Bonds relating to such matters. Very truly yours, TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON 11) By: Shawn Nelson, acting on behalf of Temecula Public Financing Authority, for the District APPENDIX F FORM OF DISTRICT CONTINUING DISCLOSURE AGREEMENT This CONTINUING DISCLOSURE AGREEMENT (the "Disclosure Agreement") is executed and entered into as of August 1, 2004, by and between U.S. Bank National Association, a national banking association organized and existing under and by virtue of the laws of the United States of America (the "Bank"), in its capacity as Dissemination Agent (the "Dissemination Agent") and in its capacity as Fiscal Agent (the "Fiscal Agent"), and the Temecula Public Financing Authority, a joint exercise of powers authority organized and existing under and by virtue of the Constitution and of the laws of the State of California (the "Authority"), for and on behalf of the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) (the "District"); WITNESSETH: WHEREAS, pursuant to the Fiscal Agent Agreement, dated as of August 1, 2004 (the "Fiscal Agent Agreement"), by and between the Authority, for and on behalf of the District, and the Fiscal Agent, the Authority has issued its Special Tax Bonds, Series 2004 in the aggregate principal amount of $ (the "Series 2004 Bonds"); and WHEREAS, this Disclosure Agreement is being executed and delivered by the Authority and the Fiscal Agent for the benefit of the owners and beneficial owners of the Series 2004 Bonds and in order to assist the underwriter of the Series 2004 Bonds in complying with Securities and Exchange Commission Rule 15c2-12(b)(5); NOW, THEREFORE, for and in consideration of the mutual premises and covenants herein contained, the parties hereto agree as follows: Section 1. Definitions. Capitalized undefined terms used herein shall have the meanings ascribed thereto in the Fiscal Agent Agreement. In addition, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Authority pursuant to, and described in, Sections 2 and 3 of this Disclosure Agreement. "Annual Report Date" shall mean the date in each year that is eight months after the end of the Authority's fiscal year, which date, as of the date of this Disclosure Agreement, is March 1. "Disclosure Representative" shall mean the Finance Director of the City of Temecula, as Treasurer of the Authority, or his or her designee, or such other office or employee as the Authority shall designate in writing to the Fiscal Agent from time to time. "Dissemination Agent" shall mean U.S. Bank National Association, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the Authority and which has filed with the Fiscal Agent a written acceptance of such designation. "Listed Events" shall mean any of the events listed in Section 4(a) of this Disclosure Agreement. F-1 "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. Information on the National Repositories as of a particular date is available on the Internet at www.sec.gov/consumer/nrmsir.htm. "Official Statement" shall mean the Official Statement, dated August _, 2004, relating to the Series 2004 Bonds. "Participating Underwriter" shall mean Stone & Youngberg LLC. "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State Repository" shall mean any public or private repository or entity designated by the State of California as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Disclosure Agreement, there is no State Repository. Section 2. Provision of Annual Reports (a) The Authority shall, or, upon furnishing the Annual Report to the Dissemination Agent, shall cause the Dissemination Agent to, provide to each Repository, to the Fiscal Agent and to the Participating Underwriter an Annual Report which is consistent with the requirements of Section 3 of the Disclosure Agreement, not later than the Annual Report Date, commencing with the report for the 2003/04 fiscal year. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 3 of this Disclosure Agreement; provided, however, that the audited financial statements of the Authority, if any, may be submitted separately from the balance of the Annual Report, and later than the date required above for the filing of the Annual Report if not available by that date. If the Authority's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 4(f). (b) Not later than fifteen (15) Business Days prior to the date specified in subsection (a) for providing the Annual Report to Repositories, the Authority shall provide the Annual Report (in a form suitable for reporting to the Repositories) to the Dissemination Agent, the Fiscal Agent (if the Fiscal Agent is not the Dissemination Agent) and the Participating Underwriter. If by such date, the Fiscal Agent has not received a copy of the Annual Report, the Fiscal Agent shall contact the Disclosure Representative and the Dissemination Agent to inquire if the Authority is in compliance with the first sentence of this subsection (b). The Authority shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by it hereunder. The Dissemination Agent may conclusively rely upon such certification of the Authority and shall have no duty or obligation to review such Annual Report. (c) If the Fiscal Agent is unable to verify that an Annual Report has been provided to Repositories by the date required in subsection (a), the Fiscal Agent shall send a notice to the Repositories and the appropriate State Repository, if any, in substantially the form attached as Exhibit A. (d) The Dissemination Agent shall: F-2 (i) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and each State Repository, if any; and (ii) file a report with the Authority, the Participating Underwriter and (if the Dissemination Agent is not the Fiscal Agent) the Fiscal Agent certifying that the Annual Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided and listing all the Repositories to which it was provided. Section 3. Content of Annual Reports. The Authority's Annual Report shall contain or incorporate by reference the following: (a) The Authority's audited financial statements, if any, prepared in accordance with generally accepted accounting principles as promulgated to apply to government entities from time to time by the Governmental Accounting Standards Board. If the Authority's audited financial statements, if any, are not available by the time the Annual Report is required to be filed pursuant to Section 2(a), the Annual Report shall contain unaudited financial statements in a format similar to that used for the Authority's audited financial statements, and the audited financial statements, if any, shall be filed in the same manner as the Annual Report when they become available. If the Authority's audited financial statements, if any, or unaudited financial statements are already filed, the Annual Report may reference that such financial statements are on file with the Repositories. (b) The following information (i) The principal amount of Bonds and parity bonds, if any, outstanding as of September 30 next preceding the date of the Annual Report Date. (ii) The balance in the Reserve Fund, if any, and a statement of the Reserve Requirement as of the September 30 next preceding the Annual Report Date and the balance in the other funds and accounts held under the Fiscal Agent Agreement. (iii) Information regarding the amount of the annual special taxes levied in the District by the Rate and Method of Apportionment of Special Tax land use categories, the names of the owners of property responsible for more than 5% of the Special Tax levy and the amount of Special Tax owed, as shown on such assessment roll of the Riverside County Assessor last equalized prior to the September 30 next preceding the Annual Report Date. (iv) The total assessed value of all parcels within the District on which the Special Taxes are levied, as shown on the assessment roll of the Riverside County Assessor last equalized prior to the September 30 next preceding the Annual Report Date, and a statement of assessed value for the property in the District by Rate and Method of Apportionment of Special Tax land use categories. (v) The Special Tax delinquency rate for all parcels within the District on which the Special Taxes are levied, as shown on the assessment roll of the Riverside County Assessor last equalized prior to the September 30 next preceding the Annual Report Date, the number of parcels within the District on which the Special Taxes are levied and which are delinquent in payment of Special Taxes based on parcels, as shown on the assessment roll on the Riverside County Assessor last equalized prior to the September 30 next preceding the Annual Report Date, the amount of each delinquency, the length of time F-3 delinquent and the date on which foreclosure was commenced, or similar information pertaining to delinquencies deemed appropriate by the District; provided, however, that parcels with aggregate delinquencies of $5,000 or less (excluding penalties and interest) may be grouped together and such information may be provided by category. (vi) The status of foreclosure proceedings for any parcels within the District on which the Special Taxes are levied and a summary of the results of any foreclosure sales as of the September 30 next preceding the Annual Report Date. (vii) The identity of any property owner representing more than five percent (5%) of the annual Special Tax levy who is delinquent in payment of such Special Taxes, as shown on such assessment roll of the Riverside County Assessor last equalized prior to the September 30 next preceding the Annual Report Date. (viii) A summary of (a) zoning changes, if any, approved by the City of Temecula (the "City") for property subject to the Special Tax in the District and (b) building permits issued by the City for property subject to the Special Tax in the District. (c) In addition to any of the information expressly required to be provided under paragraphs (a) and (b) of this Section, the Authority shall provide such further information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made, not misleading. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Authority or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The District shall clearly identify each such other document so included by reference. A form of information cover sheet for municipal secondary market disclosure recommended by the Municipal Securities Rulemaking Board is attached as Exhibit B. Section 4. Reporting of Significant Events. (a) Pursuant to the provisions of this Section 4, the Authority shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Series 2004 Bonds, if material: (i) Principal and interest payment delinquencies; (ii) Non-payment related defaults; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions or events affecting the tax-exempt status of the security; F-4 (vii) Modifications to rights of security holders; (viii) Contingent or unscheduled bond calls; (ix) Defeasances; (x) Release, substitution, or sale of property securing repayment of the securities; (xi) Rating changes; and (xii) Receipt by the Authority of notice that a credit on liquidity facility will not be renewed, replaced or extended. (b) The Fiscal Agent shall, within five (5) business days of obtaining actual knowledge of the occurrence of any of the Listed Events, contact the Disclosure Representative, inform such person of the event, and request that the Authority promptly notify the Dissemination Agent in writing whether or not to report the event pursuant to subsection (f), provided, however, that the Dissemination Agent shall have no liability to Bond Owners for any failure to provide such notice. For purposes of this Disclosure Agreement, "actual knowledge" of the occurrence of the Listed Events described under clauses (ii), (iii), (vi), (x) and (xi) above shall mean actual knowledge by an officer at the corporate trust office of the Fiscal Agent. The Fiscal Agent shall have no responsibility for determining the materiality of any of the Listed Events. (c) Whenever the Authority obtains knowledge of the occurrence of a Listed Event, whether because of a notice from the Fiscal Agent pursuant to subsection (b) or otherwise, the Authority shall as soon as possible determine if such event would be material under applicable Federal securities law. (d) If the Authority determines that knowledge of the occurrence of a Listed Event would be material under applicable Federal securities law, the Authority shall promptly notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report the occurrence pursuant to subsection (f). The Authority shall provide the Dissemination Agent with a form of notice of such event in a format suitable for reporting to the Municipal Securities Rulemaking Board and each State Repository, if any. (e) If in response to a request under subsection (b), the Authority determines that the Listed Event would not be material under applicable Federal securities law, the Authority shall so notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence pursuant to subsection (f). (f) If the Dissemination Agent has been instructed by the Authority to report the occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with the Municipal Securities Rulemaking Board and each State Repository and shall provide a copy of such notice to each Participating Underwriter described on Exhibit B attached hereto. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(viii) and (ix) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to owners of affected Bonds pursuant to the Fiscal Agent Agreement. Section 5. Termination of Reoortine Obligation. All of the Authority's obligations under this Disclosure Agreement shall terminate upon the earliest to occur of (i) the legal defeasance of the F-5 Series 2004 Bonds, (ii) prior redemption of the Series 2004 Bonds or (iii) payment in full of all the Series 2004 Bonds. If such determination occurs prior to the final maturity of the Series 2004 Bonds, the Authority shall give notice of such termination in the same manner as for a Listed Event under Section 4(f). Section 6. Dissemination Agent. The Authority may, from time to time, appoint or engage a Dissemination Agent to assist in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The initial Dissemination Agent shall be U.S. Bank National Association. The Dissemination Agent may resign by providing forty-five (45) days' written notice to the Authority and the Fiscal Agent (if the Fiscal Agent is not the Dissemination Agent). The Dissemination Agent shall have no duty to prepare the Annual Report nor shall the Dissemination Agent be responsible for filing any Annual Report not provided to it by the Authority in a timely manner and in a form suitable for filing. If at any time there is not any other designated Dissemination Agent, the Fiscal Agent shall be the Dissemination Agent. Section 7. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the Authority, the Fiscal Agent and the Dissemination Agent may amend this Disclosure Agreement (and the Fiscal Agent and the Dissemination Agent shall agree to any amendment so requested by the Authority, so long as such amendment does not adversely affect the rights or obligations of the Fiscal Agent or the Dissemination Agent), and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Sections 2(a), 3 or 4(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Series 2004 Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, inthe opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Series 2004 Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by owners of a majority of the owners of the Series 2004 Bonds affected thereby in the manner provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the consent of owners, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the owners or beneficial owners of the Series 2004 Bonds. If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first annual financial information containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the F-6 accounting principles and the impact of the change in the accounting principles on the presentation of the financial information in order to provide information to investors to enable them to evaluate the ability of the Authority to meet its obligations, including its obligation to pay debt service on the Series 2004 Bonds. To the extent reasonably feasible, the comparison shall be quantitative. A notice of the change in the accounting principles shall be sent to the Repositories in the same manner as for a Listed Event under Section 4(f). Section 8. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the Authority from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the Authority chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the Authority shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Section 9. Default. In the event of a failure of the Authority, the Dissemination Agent or the Fiscal Agent to comply with any provision of this Disclosure Agreement, the Fiscal Agent may (and, at the written direction of any Participating Underwriter orthe owners of at least 25%aggregate principal amount of Outstanding Bonds, shall, upon receipt of indemnification reasonably satisfactory to the Fiscal Agent), or any owner or beneficial owner of the Series 2004 Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Authority, the Dissemination Agent or the Fiscal Agent, as the case may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the Authority, the Dissemination Agent or the Fiscal Agent to comply with this Disclosure Agreement shall be an action to compel performance. Section 10. Duties. Immunities and Liabilities of Fiscal Agent and Dissemination Atent. Section 7.01 and Section 7.02 of the Fiscal Agent Agreement are hereby made applicable to this Disclosure Agreement as if this Disclosure Agreement were (solely for this purpose) contained in the Fiscal Agent Agreement, and the Fiscal Agent and the Dissemination Agent shall be entitled to the protections, limitations from liability and indemnities afforded to the Fiscal Agent thereunder. The Dissemination Agent and the Fiscal Agent shall have only such duties hereunder as are specifically set forth in this Disclosure Agreement. This Disclosure Agreement does not apply to any other securities issued or to be issued by the Authority. The Dissemination Agent shall have no obligation to make any disclosure concerning the Series 2004 Bonds, the Authority or any other matter except as expressly set out herein, provided that no provision of this Disclosure Agreement shall limit the duties or obligations of the Fiscal Agent under the Fiscal Agent Agreement. The Dissemination Agent shall have no responsibility for the preparation, review, form or content of any Annual Report or any notice of a Listed Event. The fact that the Fiscal Agent has or may have any banking, fiduciary or other relationship with the District or any other party, apartfrom the relationship created by the Fiscal Agent Agreement and this Disclosure Agreement, shall not be construed to mean that the Fiscal Agent has knowledge or notice of any event or condition relating to the Series 2004 Bonds or the District except in its respective capacities under such agreements. No provision of this F-7 Disclosure Agreement shall require or be construed to require the Dissemination Agent to interpret or provide an opinion concerning any information disclosed hereunder. Information disclosed hereunder by the Dissemination Agent may contain such disclaimer language concerning the Dissemination Agent's responsibilities hereunder with respect thereto as the Dissemination Agent may deem appropriate. The Dissemination Agent may conclusively rely on the determination of the District as to the materiality of any event for purposes of Section 4 hereof. Neither the Fiscal Agent nor the Dissemination Agent make any representation as to the sufficiency of this Disclosure Agreement for purposes of the Rule. The Dissemination Agent shall be paid compensation by the District for its services provided hereunder in accordance with its schedule of fees, as amended from time to time, and all expenses, legal fees and advances made or incurred by the Dissemination in the performance of its duties hereunder. The District's obligations under this Section 10 shall survive the termination of this Disclosure Agreement. Section 11. Beneficiaries. The Participating Underwriter and the owners and beneficial owners from time to time of the Series 2004 Bonds shall be third party beneficiaries under this Disclosure Agreement. This Disclosure Agreement shall inure solely to the benefit of the District, the Fiscal Agent, the Dissemination Agent, the Participating Underwriter and owners and beneficial owners from time to time of the Series 2004 Bonds, and shall create no rights in any other person or entity. Section 12. Notices. Any notice or communications herein required or permitted to be given to the Authority, the Fiscal Agent or the Dissemination Agent shall be in writing and shall be deemed to have been sufficiently given or served for all purposes by being delivered or sent by telecopy or by being deposited, postage prepaid, in a post office letter box, to the addresses set forth below, or to such other address as may be provided to the other parties hereinafter listed in writing from time to time, namely: If to the Authority: Temecula Public Financing Authority 43200 Business Park Drive Temecula, California 92590 Attention: Director of Finance Telephone:909/694-6430 Telecopier. 909/694-6479 If to the Community Community Facilities District No. 03-06 Facilities District: 43200 Business Park Drive Temecula, California 92590 Attention: Director of Finance Telephone: 909/694-6430 Telecopier: 909/694-6479 If to the U.S. Bank National Association Dissemination 633 West Fifth Street, 24' Floor Agent: LM-CA-T24T Los Angeles, California 90071 Telephone: 213 /615-6030 F-8 Telecopier:213/615-6199 If to the U.S. Bank National Association Fiscal Agent: 633 West Fifth Street, 24' Floor LM-CA-T24T Los Angeles, California 90071 Telephone: 213/615-6030 Telecopier:213/615-6199 If to the Stone & Youngberg LLC Participating One Ferry Building Underwriter: San Francisco, California 94111 Telephone:415/445-2300 Attention: Municipal Research Department Section 13. Future Determination of Obligated Persons. In the event the Securities Exchange Commission amends, clarifies or supplements the Rule in such a manner that requires any landowner within the Authority to be an obligated person as defined in the Rule, nothing contained herein shall be construed to require the Authority to meet the continuing disclosure requirements of the Rule with respect to such obligated person and nothing in this Disclosure Agreement shall be deemed to obligate the Authority to disclose information concerning any owner of land within the Authority except as required as part of the information required to be disclosed by the Authority pursuant to Section 4 and Section 5 hereof. Section 14. Severability. In case any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof. Section 15. State of California Law Governs. The validity, interpretation and performance of this Purchase Agreement shall be governed by the laws of the State of California. Section 16. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 17. Merger. Any person succeeding to all or substantially all of the Dissemination Agent's corporate trust business shall be the successor Dissemination Agent without the filing of any paper or any further act. F-9 IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agreement as of the date first above written. TEMECULA PUBLIC FINANCING AUTHORITY, FOR AND ON BEHALF OF TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-06 (HARVESTON II) Authorized Officer U.S. BANK NATIONAL ASSOCIATION, as Fiscal Agent 0 Authorized Officer U.S. BANK NATIONAL ASSOCIATION, as Dissemination Agent M. Authorized Officer F-10 EXHIBIT A NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD OF FAILURE TO FILE SEMI-ANNUAL REPORT Name of Issuer: Temecula Public Financing Authority, for and on behalf of Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Name of Bond Issue: Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston II) Special Tax Bonds, Series 2004 Date of Issuance: August . 2004 NOTICE IS HEREBY GIVEN that the Temecula Public Financing Authority (the "Authority") has not provided an Annual Report with respect to the above -named Bonds as required by the Continuing Disclosure Agreement, dated as of August 1, 2004, by and between the U.S. Bank National Association, in its capacity as Fiscal Agent, and in its capacity as Dissemination Agent, and the Authority. [The Authority anticipates that the Annual Report will be filed by Dated: Authority cc: Temecula Public Financing Authority Stone & Youngberg LLC F-11 U.S. BANK NATIONAL ASSOCIATION, as Fiscal Agent, on behalf of the Temecula Public Financing Authorized Officer 0.14111:300 Municipal Secondary Market Disclosure Information Cover Sheet This cover sheet should be sent with all submissions made to the Municipal Securities Rulemaking Board, Nationally Recognized Municipal Securities Information Repositories, and any applicable State Information Depository, whether the filing is voluntary or made pursuant to Securities and Exchange Commission rule 15c2-12 or any analogous state statute. See www.sec.gov/info/municipal/nrmsir.htm for list of current NRMSIRs and SIDS IF THIS FILING RELATES TO A SINGLE BOND ISSUE: Provide name of bond issue exactly as it appears on the cover of the Official Statement (please include name of state where issuer is located): [INSERT ISSUE NAME, INCLUDING $ AMOUNT] Provide nine -digit CUSIP* numbers if available, to which the information relates: [INSERT CUSIP NUMBERS] IF THIS FILING RELATES TO ALL SECURITIES ISSUED BY THE ISSUER OR ALL SECURITIES OF A SPECIFIC CREDIT OR ISSUED UNDER A SINGLE INDENTURE: Issuer's Name (please include name of state where Issuer is located): Other Obligated Person's Name (if any): (Exactly as it appears on the Official Statement Cover) Provide six -digit CUSIP* number(s), if available, of Issuer: *(Contact CUSIP's Municipal Disclosure Assistance Line at 212.438.6518 for assistance with obtaining the proper CUSIP numbers.) TYPE OF FILING: F-12 ❑ Electronic (number of pages If information is also available on the Internet, give URL: ❑ Paper (number of pages attached) WHAT TYPE OF INFORMATION ARE YOU PROVIDING? (Check all that apply) A. ❑ Annual Financial Information and Operating Data pursuant to Rule 15c2-12 (Financial information and operating data should not be filed with the MSRB.) Fiscal Period Covered: B. ❑ Audited Financial Statements or CAFR pursuant to Rule 15c2-12 Fiscal Period Covered: C. ❑ Notice of a Material Event pursuant to Rule 15c2-12 (Check as appropriate) ❑ Principal and interest payment delinquencies 2. ❑ Non-payment related defaults 3. ❑ Unscheduled draws on debt service reserves reflecting financial difficulties 4. ❑ Unscheduled draws on credit enhancements reflecting financial difficulties 5. ❑ Substitution of credit or liquidity providers, or their failure to perform 6. ❑ Adverse tax opinions or events affecting the taxexempt status of the security 7. ❑ Modifications to the rights of security holders & ❑ Bond calls 9. ❑ Defeasances lo. ❑ Release, substitution, or sale of property securing repayment of the securities 11. ❑ Rating changes D. ❑ Notice of Failure to Provide Annual Financial Information as Required E. ❑ Other Secondary Market Information (Specify): I hereby represent that I am authorized by the issuer or obligor or its agent to distribute this information publicly: Issuer Contact: Name Title Fmnlover Address City State Zip Code Telephone Fax Email Address Issuer Web Site Address F-13 Dissemination Agent Contact, if any: Name Employer Address Telephone_ Email Address Obligor Contact, if any: Name Employer Address Email Address Investor Relations Contact, if any: Name f Title City State Fax Relationship to Issuer_ Title Zip Code City State Zip Fax Obligor Web site Address Title Email Address F-14 ITEM 14 APPROVAL CITY ATTORNEY DIRECTOR OF Fft CITY MANAGER - CITY OF TEMECULA AGENDA REPORT TO: City Manager/Ci Co cil FROM: Debbie UbnoskL, irector of Planning DATE: August 10, 2004 SUBJECT: Update of the Old Town Specific Plan (PA03-0158) PREPARED BY: David Hogan, Principal Planner RECOMMENDATION: The Planning Commission recommends that the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 04-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A COMPREHENSIVE UPDATE OF THE OLD TOWN SPECIFIC PLAN (PLANNING APPLICATION NO. 03- 0158) 2. Introduce and read by title only an ordinance entitled: ORDINANCE NO. 04-_ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING THE ZONING AND HISTORIC PRESERVATION STANDARDS FOR THE OLD TOWN SPECIFIC PLAN (PLANNING APPLICATION NO. 03-0158) BACKGROUND: The Old Town Specific Plan (OTSP) was approved on February 14, 1994 following the approval of the City's first General Plan on November 9, 1993. Since that time, there have been three minor amendments related to parking and signage. City Staff and the Old Town Local Review Board (OTLRB) began considering modifications to the Specific Plan in 2003. The update consists of both organization and format changes, as well as more substantive modifications. The primary content changes include modifications to the Land Use Plan, minor clean-up items to the zoning standards within the Plan, the establishment of additional guidelines for public art, outdoor dining areas, detached structures, fences, walls, awnings, pocket parks, vending machines, signage, and the modification of the parking requirements in the Tourist Retail Core. The overall structure of the Old Town Specific Plan is also being modified to remove obsolete provisions and consolidate the historic preservation requirements into a single section. R:\OTSP\Plan Amendments\PA03-0158\Staff Report W.doc 1 This updated draft of the Old Town Specific Plan was presented to and approved by the Planning Commission on June 16, 2004. The Commission had no concerns with the proposed amendments and made a few additional minor corrections to Specific Plan. The specific Commission changes have been incorporated in the draft document and are contained in Attachment No. 7. A complete copy of the updated Old Town Specific Plan is contained in Attachment No. 4. Changes to the Land Use Map While the overall concept of the Old Town Specific Plan will not change, there are a number of changes being proposed to the Land Use Plan. None of these changes undermine the integrity or goals of the Specific Plan. The specific Land Use Plan changes are as follows: Merging the Community Commercial -Tourist Support Area (at the south end of Old Town) into the Tourist Retail Core Planning District. 2. Expanding the Tourist Retail Core northward to include the shopping center immediately north of the Sixth Street Parking Lot. 3. Adding the Union 76 Service Station, at the southeast corner of Rancho California Road and Old Town Front Street, into the Highway Tourist Commercial Planning Area in the Specific Plan. 4. Adjusting the boundary between the Highway Tourist Commercial and Community Commercial Planning Areas across the street from the Museum. Specifically, two parcels would be shifted from the Highway Tourist to Community Commercial area. 5. More accurately delineate the location of the future channel for Murrieta Creek. The proposed Land Use Plan is shown in Attachment No. 8. An exhibit showing the current Land Use Plan is shown in Attachment No. 9. Transition of the Tourist Serving Residential Planning Area When the Specific Plan was first adopted, the retention of the single family homes east of Mercedes Street was major concern. As a result, much of this area was designated as Tourist Serving Residential (TSR). This designation allowed the single family residences to stay while setting the stage for an eventual transition into the Tourist Retail Core at some point in the future. Both the Old Town Local Review Board and the Planning Commission are recommending that this area be merged into the Tourist Retail Core and that provisions be added to the Plan to allow the existing residences to remain as legal uses. Permitted Use Matrix One of the most apparent changes tot he Specific Plan is the clean up tot he permitted use matrix. The original matrix had numerous repeat uses and was divided into a number of subcategories that often made it difficult to determine if a use was permitted or not. The proposed Plan Amendment consolidates these sub -lists into a single more consistent list using the format of the City's Development Code. A summary of the proposed minor use changes are shown in Attachment No. 10. RAMP\Plan Amendments\PA03-0158\Staff Report =.doc Zoning and DeveloDment Standards Mixed Use Provisions. One of the goals of the original Specific Plan was to encourage additional residential units in the Tourist Retail Core. These additional units were expected to assist in the revitalization of Old Town and the creation of a vibrant village center. The proposed amendment would make the provision of these accessory residential units easier by allowing the number of units to be determined on a case by case basis. This is expected to bring future mixed use development projects in Old Town into full compliance with the current General Plan Village Center and the Mixed Use provisions. Building Height. The current Specific Plan limits buildings to two stories and provides a mechanism for the City Council to approve taller structures. The proposed amendment would increase the allowable building height in the Tourist Retail Core to three stories while retaining the City Council's authority to approve higher structures. Parking Requirements. When the Old Town Specific Plan was adopted, the Plan referenced the citywide parking standards in Chapter 17.24 of the Development Code. Shortly thereafter, it became apparent that maintaining the current parking standard and requiring that buildings in Old Town be oriented toward the sidewalk were substantially in conflict. As a result, the City Council approved the elimination of the onsite parking requirement in the Tourist Retail Core. This proposed amendment would continue that opportunity while retaining the onsite parking requirement for the more a utomobile-oriented commercial a nd residential d istricts. Within the Tourist Retail Core and Tourist Serving Residential Districts, onsite parking would be required only for hotels, motels, and banks and financial institutions that are more than 1,250 square feet is size. The provision of onsite parking for mixed use residences is recommended but not required. Temporary Uses. The proposed Specific Plan Amendment would also increase the number of allowable outdoor sales event from two to four events per year within the Tourist Retail Core District. Given the character and nature of Old Town, the additional events are expected to generate activity and excitement into the core of Old Town. This is an increase over the citywide standard of two events per year. Development Incentives. The final change to the zoning standards is the elimination of the development incentives. The original incentive provisions, increasing building height, reducing the onsite parking standard, and increasing the number of allowable units were not achieving their desired goal. As a result, these provisions have been incorporated into the design standards within the Specific Plan. Additional Design Standards Over the years, the Old Town Local Review Board has often struggled with the need for additional design standards covering a variety of accessory structures, fences and awnings. In response to this, staff and the OTLRB developed supplemental standards for these items and are proposing that they be incorporated into Chapter IV of the Old Town Specific Plan. Along with these new discussions, new photographs and exhibits are also being proposed throughout the Design Guidelines. Some of the major items being included in this Amendment are public art, outdoor dining and sidewalk cafe furniture and pocket parks. RAMP\Plan Amendments\PA03-0158\Staff Report CC1.doc 3 Historic Preservation Requirements The proposed Specific Plan Amendment will locate all the historic preservation and Old Town Local Review Board provisions into a single Chapter of the Plan. The Board's authority, mission, and composition are not being changed. The primary changes include the updating and simplification of the review procedure, a specific requirement to maintain designated historic structures, and the inclusion of a specific penalty in the event a designated historic structure is destroyed or removed without City permission. The specific provisions would allow the City Council to require the complete and total replacement of an illegally removed historic structure. If the restoration is not done, the City Council could then prohibit the issuance of building or use permits for a period of up to seven years. Historic Building Inventory The original Old Town Specific Plan relied heavily on a 1983 Historic Structure Inventory in targeting which structures should be considered historic. In that inventory, the building was identified as the 1920 Delgado House. As a result, the City identified this structure as historic. Immediately before the Specific Plan Amendment was to be considered by the Planning Commission, the historic designation of the house located at 41878 4t" Street was questioned by the residing property owner. In an effort to determine whether or not the structure was built in the 1 920's, Senior Building Inspector Paul Zuna examined the house. While no specific proof of the age of the structure could be found, his professional opinion was that the house was built in either the late 1930's or immediately after World War II. In addition, the Title Report for the property indicated that it was built in 1945. Because the structure does not appear to be from the 1920's, is not a good example of 1880 to 1920 architectural, and does not represent an important event or person in local history, staff is recommending that the house at 41878 4th Street be removed from the inventory of protected historic structures. Environmental Determination To evaluate the possible impacts associated with these changes to the Old Town Specific Plan, staff prepared an Initial Environmental Study. Using the original approved Specific Plan as the baseline condition; the analysis identified two impact areas that have the potential to see some change in terms of the environmental impacts. The two areas are parking and noise. The elimination of the onsite parking requirement for much of the commercial core has a potential to cause parking -related impacts in Old Town. However, to address this concern, the Specific Plan retains the requirement for centralized City parking lots to provide the necessary parking. To date, the City has constructed one lot at the north end of the Tourist Retail Core area and acquired another parking lot at the south end of the Tourist Retail Core. The City has also recently acquired a number of parcels in the middle part of Old Town and is considering providing additional parking in this location. With the provisions to allow additional residential uses in conjunction with office and retail uses within the Tourist Retail Core, there is a possibility of an additional increment of noise impacts because of this area's proximity to Interstate 15. However, current building code requirements set interior noise requirements that will minimize most of these future noise impacts. The possible parking and noise impacts are considered to be less than significant. As a result, the Commission is recommending that to the City Council that a Negative Declaration be adopted. A copy of the Initial Environmental Study in contained in Attachment No. 11. R:\OTSP\Plan Amendments\PA03-0158\Staff Report M.doc 4 FISCAL IMPACT: The approval of this comprehensive amendment to the Old Town Specific Plan will not have a direct fiscal impact. BIfaTd:Ili 4Zh&I 1. Proposed Council Resolution 2. Proposed Council Ordinance 3. Draft of the Updated Old Town Specific Plan 4. Planning Commission Resolution 5. Planning Commission Staff Report 6. Planning Commission Minutes 7. List of Planning Commission Changes 8. Proposed Specific Plan Land Use Map 9. Current Specific Plan Land Use Map 10. Summary of Land Use Matrix Changes 11. Initial Environmental Study R:\OTSP\Plan Amendments\PA03-0158\Staff Report CC1.doc ATTACHMENT NO. 1 PROPOSED COUNCIL RESOLUTION R:\OTSP\Plan Amendments\PA03-0158\Staff Report M.doc 6 RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A COMPREHENSIVE UPDATE OF THE OLD TOWN SPECIFIC PLAN (PLANNING APPLICATION NO.03-0158) WHEREAS, on November 9, 1993, the City Council of the City of Temecula adopted the General Plan; and WHEREAS, on February 8, 1994, the City Council of the City of Temecula approved the Old Town Specific Plan to guide the revitalization of Old Town Temecula; and WHEREAS, the Old Town Specific Plan created the Old Town Local Review Board to assist in the implementation of the Plan and to periodically suggest ways to improve the Specific Plan; and WHEREAS, the Old Town Local Review Board identified a number of areas where supplemental design guidelines could be necessary and worked with City Staff to develop detailed amendments to the Specific Plan; and WHEREAS, the Planning Commission considered these proposed amendments on June 16, 2004, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested p ersons h ad a n o pportunity to, a n d id testify a ither i n s upport o r o pposition to this matter; WHEREAS, the City Council considered these proposed amendments on August 10, 2004, a t a d my n oticed p ublic h earing a s prescribed by law, at which time the City staff and interested p ersons h ad an opportunity to, an did testify either in support or opposition to this matter; NOW, THEREFORE, BE IT RESOLVED that the City Council: Section 1. Approval of the Amendment to the Old Town Specific Plan. The City Council for the City of Temecula hereby approves the amendments to the Old Town Specific Plan as contained in Exhibit A. Section 2. Environmental Determination. A detailed Initial Environmental Study (IES) checklist was prepared for this project. The analysis identified no significant impacts on the environment. The IES and Notice of Intent to Adopt a Negative Declaration was circulated for public review between May 24, 2004 and June 17, 2004. As a result, the City Council hereby adopts a Negative Declaration for this project. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula this day of 2004. Michael S. Naggar, Mayor R:\OTSP\Plan Amendments\PA03-0158\Staff Report =.doc 7 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 thereof held on the _ day of , 2004, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk R:\OTSP\Plan Amendments\PA03-01 WStaff Report =.doc 8 Old Town Specific Plan Table of Contents I. INTRODUCTION TO THE SPECIFIC PLAN A. Background and History Page I-1 B. Authority for the Plan Page I-3 C. Organization for the Specific Plan Page I-5 II. GOALS, OBJECTIVES, AND POLICIES A. Introduction Page II-1 B. Overall Goal Page II-1 C. Goals, Objectives, and Policies 1. Community Design Page II-2 2. Land Use/Economics Page H-4 3. Circulation/Parking Page 11-5 4. Murrieta Creek Page H-7 D. Infrastructure Plans Page U-8 III. LAND USE AND DEVELOPMENT STANDARDS A. Introduction Page III-1 B. Establishment of Land Use Districts and Map Page III -I C. Land Use Regulations Page III-4 D. Site Development Standards Page III-10 E. Relationship of the Specific Plan to Other Codes Page III-13 F. Supplemental and Special Use Standards Page III-14 G. Sign Regulations Page III-24 H. General Provisions and Regulations Page III-29 IV. DESIGN GUIDELINES A. Purpose and Intent Page IV-1 B. Architectural Style Guidelines Page IV-2 C. Site Planning Guidelines Page IV-25 D. Parking Lot Guidelines Page IV-35 Town Specific Plan i - 1 IV. DESIGN GUIDELINES (CONTINUED) E. Landscape Guidelines F. Lighting Guidelines G. Public Art Guidelines H. Outdoor Dining / Sidewalk Furniture Guidelines I. Paving Material Guidelines J. Sign Design Guidelines K. Streetscape Guidelines V. OLD TOWN HISTORIC PRESERVATION DISTRICT A. Purpose B. Establishment of the District C. Building Permits and Prohibitions D. Old Town Local Review Board (OTLRB) E. Old Town Local Historic Register F. Certificate of Historic Appropriateness G. Care and Maintenance H. Additional Violation Provisions for Historic Structures List of Exhibits Page IV-37 Page IV-40 Page IV-41 Page IV-45 Page IV-46 Page IV-47 Page IV-51 Page V-1 Page V-1 Page V-1 Page V-2 Page V-3 Page V-6 Page V-8 Page V-9 Exhibit I-1 Study Area Map Page I-4 Exhibit H-1 Circulation Map Page II-9 Exhibit II-2 Water Distribution System Map Page II-11 Exhibit 11-3 Wastewater Collection System Map Page II-12 Exhibit III-1 Land Use District Map Page III-2 Exhibit V-1 Historic Structures Map Page V-5 Old Town Specific Plan i - 2 I. INTRODUCTION TO THE SPECIFIC PLAN CONTENTS: A. Background and History Page I-1 B. Authority for the Plan Page I-3 C. Organization for the Specific Plan Page I-5 A. BACKGROUND AND HISTORY The site of Old Town Temecula, as we know it today, came into being generally in the 1880's with the arrival of the railroad and the moving of the post office to the present town's location. However, the area has a much earlier beginning dating back to the original village settled by the Shoshonean Indians around 900 A.D. along the banks of the Temecula River. Our discussion of historical events begins somewhat later with the arrival of the first white visitors, Father Juan Narberto de Santiago and seven soldiers who traveled to the area from the Mission San Juan Capistrano in the early 1800's. In order to establish the Mission's agricultural area, a granary and chapel were established in 1818 which marked the first settlement in the area by the white man. Not long after, in 1830, John McGee built a general store near the Pauba Ranch Headquarters, further increasing the presence of the white man in the area. The Indians lived a quiet existence until 1847 when they clashed with the Californians in one of the bloodiest battles of the Mexican War. The "Temecula Massacre" as it is referred to by local historians changed the Indian's relationship with the area and generally paved the way for increased settlement. During the next 25 years, white settlers began to move into the area in increasing numbers, pushing the Indians off of the more desirable land and further into the foothills. In 1885, John Butterfield founded a mail and passenger stage coach route which had a regular stop in Temecula. With the addition of the stage coach, Temecula experienced its first development boom. A post office was built in 1859 on a site near John McGee's general store. The stage line was halted, however, in 1861 because of the Civil War. Some of the most important historic buildings in Old Town come from this time period. The Welty Building, built in 1897, served as a general store with rooms to rent. In 1908, this building was transformed into the Ramona Inn, housing the Blind Pig Saloon on the ground floor and a boxing ring upstairs where the likes of Jack Dempsey and Jack Sharkey would train. Other key buildings from the late 1800s include the Hotel Temecula, Machado Store, the Old Town Jail, and the Temecula Mercantile building. With the continuing arrival of settlers also came an increasing concern about the Indians and a desire for their precious river oriented land. In 1876 a San Diego County Sheriffs posse came without warning and physically moved the Indians to a site not far from the present location of the Pechanga Indian Reservation. Old Town Specific Plan I - I The coming of the railroad to Temecula in 1882 marked another boom period in the City's history. Granite quarries became productive in the late 1880's and lasted until 1915. Thousands of tons of cut granite were shipped from Temecula to form the front steps of the Riverside County courthouse, curbstones on Market Street in San Francisco, cemetery monuments, and hitching posts. Some of these curbs are still present in Temecula in front of the old Machado Store/Long Branch Saloon building, around the corner from the Bank, as well as in front of the Temecula Hotel. The largest piece (15 tons) is in Sam Hicks Monument Park, on which are inscribed the names of the notable visitors to the Temecula Valley. These times brought prosperity to Temecula and the town grew steadily. Some of the town's more notable buildings were constructed during these times: the first school in 1890; Temecula Mercantile (Burnham Store) in 1902; First National Bank in 1912; and the Palomar Hotel in 1928, to mention a few. St. Catherine's Catholic Church was built in 1917 and was the first church building in Temecula. It continued to function as a church until 1980, when a new church was built to accommodate the growing congregation. Today, the old church has become the Chapel of Memories and has been relocated to Sam Hicks Monument Park Today, Old Town Temecula is but a part, albeit an important part, of this larger community. New development surrounds the historic town site and while many of its historic structures have been tom down or moved, others still remain as a reminder of what Temecula was, and more importantly, as an inspiration for what it can be in the future. The approval of the Old Town Temecula Historic Preservation District by the Riverside Board of Supervisors in October 1979 marked the first recognition that Old Town Temecula truly is a unique place with a historic character worth preserving and enhancing. Since that initial recognition, other steps have also been taken to help plan Old Town's future and preserve its historic buildings and character. The Temecula Community Plan Task Force (comprised of members from the Old Town Temecula Museum Historical Committee, Old Town Temecula Merchants Association, Temecula Town Association, and Temecula Valley Chamber of Commerce) prepared and submitted a plan for Old Town's revitalization in October 1988. While the plan was a "grass roots" effort, it did provide a valuable perspective into the existing concerns and potential solutions facing future growth and development in Old Town Temecula. The Committee's stated purpose of the plan was "... to encourage and speed the development and refurbishment of Downtown Temecula as a commercial and tourist center." However, since the plan lacked any official status, implementation of the plan's recommendations was primarily the responsibility of the Committee's member organizations which had no authority and few funds to carry out the majority of identified programs. The committee's report did, however, lay important ground work for future actions by providing a comprehensive assessment of issues facing Old Town at that time. Town Specific Plan 1-2 With the preparation of Temecula's General Plan which began in early 1992, a renewed focus on the issues facing Old Town were established. Throughout the various elements of the General Plan (including Land Use, Circulation, Open Space, and Community Design) needs have been identified to preserve and revitalize Old Town. The primary policy recommendation that emerged from the General Plan program was the need to prepare a specific plan for Old Town. Acting on this recommendation, the Temecula City Council authorized preparation of the Old Town Temecula Specific Plan (OTSP) to provide a master plan for the Old Town area. The Old Town Specific Plan was prepared in 1992 and 1993 with the assistance of Urban Design Studio and the council -appointed Old Town Steering Committee. The Steering Committee members represented a wide -range of local business and resident interests. The community is indebted to the following individuals for their participation in this process: Helga Berger, Susan Bridges, Carlene Danielsen, Linda Fahey, Christina Grina, Bill Harker, Larry Markham, Peg Moore, La Verne Parker, Bonnie Reed, and Steve Sanders. The Old Town Specific Plan was approved by the City Council on February 8, 1994. The purpose of the Plan is to provide a comprehensive plan for land use, development regulations, design guidelines, vehicular circulation, parking, development incentives and other related actions aimed at implementing the goals and objectives set forth in the Plan. This document superseded all previous plans, ordinances, and similar documents related to properties within the Specific Plan area. The boundary of the Old Town Specific Plan is shown in Exhibit I-1. B. AUTHORITY FOR THE PLAN California Government Code Sections 65450 through 65457 provide the necessary authorization for the City of Temecula to prepare and adopt this Specific Plan. The Old Town Specific Plan is a regulatory plan which will serve as zoning law for properties within the boundaries of the Plan as depicted in Exhibit I-1. All proposed development plans or agreements, tract or parcel maps, and any other development approvals must be consistent with this Specific Plan and with the General Plan. This includes the identification of the Old Town area as a Village Center under the General Plan. The Specific Plan may be amended to further the systematic implementation of the General Plan. Old Town Specific Plan l - S Old Town Temecula Specific Plan Exhibit 1-1 Study Map Area m uZ G�4O��P� yL�QO o rL �O �G p0 0 O W a \ ti F r 0 A 400 0 400 800 Feet rAgis*011%e Iewproje Wdbvm_I_ d"w.epr C. ORGANIZATION OF THE SPECIFIC PLAN An abstract of the general contents of the Plan follows, arranged in order of appearance. Introduction - The introduction provides a short history and broad overview of the Plan. 2. Goals, Policies and Objectives. Appropriate goals, objectives, and policies are outlined in this section. They are the reference points by which all provisions of the Plan should relate to. 3. Land Use Plan and Development Standards - The Land Use Plan section describes the major concepts that make up the essence of the Plan. These include the geographic division into land use districts and the purpose of each one. It covers the permitted land uses, general provisions, site development standards, and sign controls. This section also contains regulations for special uses and activities such as sidewalk cafes, mixed use projects, vending carts, and bed and breakfast establishments. 4. Design Guidelines - The Design Guidelines section contains two types of design provisions. The first type is design guidelines which describe the architectural and siting provisions for private development. The second type is the provisions for the public streetscapes. Old Town Historic Preservation District Ordinance. This section contains the Old Town Historic Preservation District Ordinance, the Old Town Historic Register, and the Old Town Local Review Board. Old Town Specific Plan 1-5 II. GOALS, OBJECTIVES, AND POLICIES CONTENTS: A. Introduction Page II-1 B. Overall Goal Page 11-1 C. Goals, Objectives, and Policies 1. Community Design Page 11-2 2. Land Use/Economics Page 11-4 3. Circulation/Parking Page 11-5 4, Murrieta Creek Page II-7 D. Infrastructure Plans Page 1I-8 A. INTRODUCTION The purpose of this Section is to articulate the community's ideas regarding the goals and objectives for the Old Town Specific Plan. Goals Goals are broad statements of purpose that define the community's and local government's hope for the future. They are general in nature and do not indicate when and how these goals are to be accomplished. Objectives Objectives are statements of intent that generally guide future decisions in specific topic areas. Policies Policies are more specific statements of intent to deal with particular topics in a certain fashion. They begin to define the approach to achieve the Plan goals and objectives, and are the first step in the development of a solution and form the basis of development standards and zoning regulations. B. OVERALL GOAL The overall goal for the Old Town Specific Plan was developed by the Old Town Steering Committee in 1992, supported by the Planning Commission, and approved by the City Council. The overall goal is what the community wants Old Town Temecula to become and provides the overall direction for this area. The overall goal for Old Town is: To create a dynamic Old Town commercial and residential core that is attractive and of high quality, respectful of its historic buildings and unifying design theme and providing an economically viable setting for a mixture of local and tourist commercial uses, administrative/professional and residential uses with safe, efficient circulation and access. Town Specific Plan 11- 1 C. GOALS, OBJECTIVES, AND POLICIES In an effort to further define and prioritize this overall goal statement, the following Community Design, Land Use/Economic, Circulation/Parking, and Murrieta Creek goals, objectives, and policies are provided. 1. COMMUNITY DESIGN Goal To create a high quality and distinct "Western" image and a functional, vibrant and aesthetically pleasing Old Town for Temecula. Obiectives • Provide easy to follow rules and regulations for new development to complement and promote the "Old West" vision for the Old Town area. ■ Revitalize existing building facades which do not add to the established architectural theme. ■ Promote a clearly pedestrian atmosphere in the area bounded by First Street on the south, Sixth Street on the north, Murrieta Creek on the west, and Mercedes Avenue on the east. ■ Protect the grid street pattern in Old Town, specifically between First and Sixth Streets. ■ Provide for the elimination or screening of visually objectionable views such as outdoor storage, utility cabinets, trash bins, roof -mounted equipment, blank side walls, recycling equipment, and loading areas through the implementation of design guidelines. • Promote complimentary "native" landscape treatments throughout the Old Town area to enhance storefronts and the desired architectural theme. ■ Enhance and promote the creation of enjoyable public spaces throughout Old Town through the use of street furniture, landscaping, public art, building design, and pedestrian orientation. ■ Design vehicular entry points which provide a sense of arrival to Old Town; initiate the Old Town streetscape theme. ■ Provide signs to guide tourists to important destinations. Old Town Specific Plan U - 2 ■ Soften the urban character of streets, parking areas, pedestrian spaces, and walkways with wooden plank sidewalks. Streets should also appear less urban (asphalt). Policies ■ Develop consistent streetscape and architectural palettes for the Old Town that help create a high quality historic image. ■ Require compliance with the Design Guidelines for the Old Town Specific Plan in new development or the expansion or redevelopment of existing development. ■ Discourage significant lot consolidations and very large single -user development greater than 50,000 square feet in Old Town and encourage smaller storefront, pedestrian oriented design. ■ Utilize landscape materials that are clean, safe, wind resistant, drought tolerant, and native species whenever possible. Informal landscape forms should be utilized on the major thoroughfares to emphasize the "unplanned" appearance of a rustic early California settlement. ■ Consider developing incentives to provide certain "extra" "Old West" or equestrian design amenities within their projects. Of particular interest are covered arcades or porches, wood plank sidewalks, old west artifacts (water troughs, wind vanes, hitching posts), benches, and signs painted on walls. ■ Establish a program to expedite removal of existing signs that do not conform to the regulations or design theme of this Specific Plan. ■ Consider economic incentives for owners who wish to architecturally rehabilitate, refurbish, Old Town storefronts in accordance with the design guidelines of this Specific Plan. ■ Establish Main Street as the "heart" of the community by creating a pedestrian oriented, nostalgic downtown of old California. ■ Develop a new sign regulation ordinance for Old Town which specifically addresses the types of signs that were available to shopkeepers in the late 1800's to early 1900's. ■ Develop a specialized regulation for right-of-way encroachment by "thematic" architectural features such as canopies, porches, arcades, and other projections. ■ Encourage graffiti resistant materials whenever feasible. Old Town Specific Plan 11- 3 ■ Eliminate overhead utility lines throughout Old Town if feasible. ■ Consider purchasing existing billboard signs if it is determined to be economically feasible. 2. LAND USE/ECONOMIC Goal Develop "Old Town" to provide a variety of local and tourist oriented retail services, office, cultural/civic, and residential opportunities. Objectives ■ Maximize the economic base of Old Town through the definition of land use districts to insure expansion of a variety of land uses desirable to the districts including, specialty retail, tourist and local serving retail uses, specialty retail/service, office uses, and residential uses (single and multi -family). ■ Ensure the gradual upgrade of underutilized parcels functioning at less than their market potential. ■ Discourage further freestanding residential uses in the Old Town core. Encourage mixed use as it might have occurred in the late 1800's or early 1900's. • Through economic development activities and incentives, focus on attracting new commercial uses and retaining existing development which add to the "thematic" ambience of Old Town such as a blacksmith, wine tasting facility, saloon, barber, ice cream parlors, candy store, general store, and feed/tack store. Policies ■ Establish regulations that promote pedestrian oriented plazas and courtyards; and that encourage active retail commercial uses in the core of Old Town. ■ Prepare development regulations and design guidelines that clarify the expectations of the City in terms of the quality of new development in the Old Town area. ■ Establish regulations that assure compatibility of existing and new commercial uses within established land use districts while employing specific, well designed buffers from adjacent exclusively residential developments. Old Town Specific Plan II - 4 ■ Establish development incentives to encourage the introduction of a thematic western town specialty shopping development. ■ Discourage new land uses in Old Town such as automotive sales, service and repair uses, fast food drive-thru's, a traditional shopping center, mini marts, and large grocery establishments. ■ Discourage major lot consolidation and development which encourages large single -user tenants on lots greater than 50,000 square feet in Old Town. ■ Establish assistance programs to aid property and businesses owners with property improvements that further the implementation of the Specific Plan. ■ Establish height limit zones in Old Town which relate to the scale of the streetscape, historic building construction techniques, and land use. ■ Establish a sensitive non conforming use provision in the Specific Plan which provides incentives for early compliance. • Establish regulations which may waive all or portions of a parking requirement for a desirable land use. ■ Establish public restrooms in the area. ■ Include single and multiple family uses, and hotel or bed and breakfast type uses in Old Town. ■ Encourage office uses in Old Town that occupy second floor or side street building space. 3. CIRCULATION/PARKING Goals Facilitate efficient and safe movement of people and vehicles within and through Old Town and provide safe, adequate, and accessible parking in Old Town. Objectives ■ Provide additional vehicular creek crossings in Old Town, particularly at Sixth and First Streets. ■ Create a pedestrian oriented environment in the Old Town core and along Murrieta Creek. Old Town Specific Plan II - 5 ■ Provide easily identified, adequate and accessible parking with organized and consistent circulation systems throughout the Old Town area. • Redirect local through traffic vehicular trips away from Old Town Front Street onto the future western bypass road. Policies: ■ Require pedestrian -oriented street furniture at pedestrian gathering points and along Murrieta Creek through private development improvements. ■ Provide adequate parking identification signs for all public parking areas not directly visible from Old Town Front or Main Streets. ■ Consider alternative parking and streetscape design for Old Town Front and Main Streets to reflect a traditional small community downtown. ■ Establish parking standards for the designated land use districts which adequately reflect the individual character and uses proposed for those districts. Consider parking waivers or reductions for highly desirable uses. ■ Utilize landscape and hardscape design features to soften parking and pedestrian areas for new and existing development and public parking lots. ■ Encourage the efficient use of alley ways and rear building entrances to minimize the necessity for access off primary and secondary streets. ■ Limit existing and future vehicular access onto Old Town Front Street, but especially in the Old Town core. ■ Delineate desirable vacant properties that could be used for public parking lots. ■ Provide parking areas at the north and south end of the district with horse drawn wagon/trolley serving Old Town during high traffic use periods. • Provide additional pedestrian crossings over Murrieta Creek. ■ Locate parking and other public uses in areas behind, or off of, Old Town Front and Main Streets, or along Murrieta Creek (proper buffering required). ■ Consider designating truck routes and weight limits for streets in Old Town. Old Town Specific Plan 11 - 6 4. MURRIETA CREEK Goal To create technically sound and safe creek "improvements" which will reduce the threat of flooding, in Old Town and add to the vision for Old Town. Objectives • Provide improvements which will aesthetically be compatible with the vision for Old Town. • Capitalize on the improvements to add desirable pedestrian/equestrian trails along the creek's edge or in the creek bottom. ■ Coordinate any plans for the creek with other city adopted master plans. Policies ■ Whenever possible, avoid vertical concrete channel walls and use Old Town appropriate themed materials and colors. ■ Ensure that the "improved" creek contains living plant materials which are indigenous to a watershed area. ■ Encourage the implementation of measures that delay or retain runoff onsite throughout the Valley to reduce flood flows in Murrieta Creek. ■ Discourage the continued narrowing of the floodway and channel for Murrieta Creek. ■ Provide amenities such as trails, plazas, and seating areas along Murrieta Creek as part of the normal development review process. Old Town Speck Plan 11- 7 D. INFRASTRUCTURE PLANS This section of the Specific Plan contains information required by State Law on the infrastructure and utilities necessary to support development in this area. This information is intended to supplement the other standards and requirements identified in the Plan. 1. Road Network The ability of residents and visitors to effectively access the Old Town area is vital to the area's future success. The areawide road network is established by the City General Plan. Within the context of the General Plan, the Old Town Specific Plan further describes the circulation network within the Old Town district. The primary circulation route within the Old Town Specific Plan is Old Town Front Street. The secondary circulation routes are Mercedes Street/Moreno Road, Main Street, and the route of Pujol Street/Sixth Street/Felix Valdez Road. In this last example, the secondary route portion of Sixth Street is only that portion that links Pujol Street to Felix Valdez. Rancho California Road and Santiago Road/ First Street are perimeter roads and are addressed in the General Plan. All other roadways with the Old Town Specific Plan are considered to be local streets. The proposed road network for the Old Town Specific Plan is found in Exhibit 11-1. The typical configurations and rights -of -way for the streets within the Old Town Specific Plan are listed below. Old Town Front Street North of the south Moreno Rd Loop 4 travel lanes in 88 feet South of the south Moreno Rd Loop 2 travel lanes in 60 feet Mercedes Street Moreno Road Main Street Pujol Street/Sixth Street/Felix Valdez Local serving streets 2 travel lanes in 60 feet 2 travel lanes in 88 feet 2 travel lanes in 60 feet 2 travel lanes in 60 feet 2 travel lanes in 60 feet In most circumstances, the Old Town Specific Plan does not anticipate the installation of additional traffic signals within Old Town Temecula. The possible future exceptions to this are the intersections of Santiago Road and Pujol Street and Mercedes Street/Moreno Road and Old Town Front Street. These intersections may need to be signalized when warranted due to potential turning movement conflicts and future development west of the Old Town area. In all other cases, stop signs are the preferred method to control and prioritize vehicular traffic. Town Specific Plan 11- 8 Old Town Temecula Specific Plan Exhibit II-1 Roadway Improvements and Build -Out Recommendations 2. Water System Water distribution services in the Old Town area are provided by Rancho California Water District (RCWD). Since the initial adoption, the City has worked with RCWD to provide adequate water service in Old Town. Based upon these system upgrades and the project development in Old Town Temecula, the current system should be adequate to meet future water needs. However, additional development west of Old Town requires changes to the current network to meet this currently unspecified need. The current backbone water system is shown in Exhibit II-2. In addition, there are reclaimed water lines that have the potential to serve portions of Old Town. These are located (detailed information not yet available). 3. Sewer System Wastewater collection service is provided by Eastern Municipal Water District EMWD). Over the last ten years, EMWD has made a number of improvements to the wastewater collection system to meet current and future needs. The upgrading and relocation of the First Street lift station has corrected most of the problems. Additional new development west of Old Town may require some changes to the current network to meet future needs. The current wastewater collection system is shown in Exhibit II-3. 4. Drainage System The regional drainage system component in the Old Town area is the channel of Murrieta Creek, a primary tributary to the Santa Margarita River. In this area, the historic drainage pattern has always been into Murrieta Creek. All current and future drainage from this area is expected to continue to flow into the Murrieta Creek. The on -street drain inlets collect storm water flows and transport it directly to the Creek. The majority of these drainage structures range from to in size. 5. Solid Waste The City of Temecula currently contracts for refuse collection and recycling services. Through this contract, the Old Town area currently receives solid waste disposal services. Refuse collected locally is currently taken to the El Sobrante and Badlands Landfills for disposal. Old Town Specific Plan II - Old Town Temecula Specific Plan Exhibit II-2 Proposed Water Improvements Old Town Temecula Specific Plan Exhibit II-3 Proposed Sewer and Reclaimed Water Improvements 6. Electricity Electrical service is currently provided by Southern California Edison. There is presently an electrical distribution network in place in Old Town. Adequate regional electrical power supply can be provided to the Old Town area as it redevelops. The City requires that all new lines (up to 34KV) be underground. 7. Natural Gas Natural gas service is currently provided by the Southern California Gas Company (SCG). There is presently a natural gas distribution network in place in Old Town. SCG has indicated that it can continue to provide natural gas to the Old Town area. S. Telephone Service Local telephone service is currently provided by Verizon. There is presently a telephone network in place in the Old Town area. This existing network will continue to provide all necessary wire -based telephone services. In addition, there is an existing network of cellular telephone facilities in and around Temecula that also provide service to Old Town. 9. Parks and Recreation Facilities There is currently one park facility within the Old Town Specific Plan. Sam Hicks Monument Park, at the corner of and Moreno and Mercedes Streets, is adjacent to the Temecula Museum. The facilities include a tot lot, picnic tables, and a gazebo. In addition to this, the Boys and Girls Club has a facility just outside the Plan area at the corner of First and Pujol Streets. A proposed recreation facility/park adjacent to the Boys and Girls Club is currently under design. It is anticipated to include an enhanced gymnasium and additional meeting and activity areas. The provision of a future "town square" is also being considered. While the exact location and facilities have not been determined, the facility would provide a public gathering space that would be integrated into the current Specific Plan. Old Town Specific Plan 11- 13 III. LAND USE AND DEVELOPMENT STANDARDS CONTENTS: A. Introduction B. Establishment of Land Use Districts and Map C. Land Use Regulations D. Site Development Standards E. Relationship of the Specific Plan to Other Codes F. Supplemental and Special Use Standards G. Sign Regulations H. General Provisions and Regulations A. INTRODUCTION Page III -I Page III-1 Page III-4 Page III-10 Page III-13 Page III-14 Page III-24 Page III-29 The Old Town Specific Plan area is comprised of eight land use districts. Each district establishes permitted land uses and development standards which are intended to implement the goals, policies and objectives of this Specific Plan, as contained in Section II, and the City's General Plan. These land use regulations and development standards constitute the primary zoning provisions for the Old Town Specific Plan area. B. ESTABLISHMENT OF LAND USE DISTRICTS AND MAP 1. Specific Plan Land Use Districts. The following Land Use Districts (Planning Areas) are hereby established within the Old Town Specific Plan area: ❑ Highway Tourist Commercial (HT) District ❑ Old Town Civic (OTC) District ❑ Tourist Retail Core (TRC) District ❑ Community Commercial (CC) District ❑ Tourist Serving Residential (TSR) District ❑ Medium Density Residential (MDR) District ❑ High Density Residential (HDR) District ❑ Open Space (OS) District The Specific Plan Land Use Map (Exhibit 11I-1) depicts the boundaries of each land use district within the Specific Plan area. Old Town Specific Plan III - I Old Town Temecula Specific Plan Exhibit III-1 Proposed Land Use Districts Map 2. Descriptions of Land Use Districts. a. Highway Tourist Commercial (HT). The Highway Tourist Commercial designation is intended to provide for those uses that are located adjacent to major transportation routes and may be oriented to the needs of tourists and recreation enthusiasts. Highway Tourist Commercial development should be located at appropriate locations, and developed as clusters of commercial development rather than as shallow commercial frontage along major streets. Typical uses may include tourist accommodations and lodging facilities, automobile service stations, restaurants, convenience stores, and gift shops. The facilities should be well landscaped and provide an attractive visual image. b. Old Town Civic (OTC). The Old Town Civic designation is intended to provide for public and quasi -public uses such as parks, city offices, police/fire stations, public day care centers, senior citizen centers, community centers, museums, and similar facilities. C. Tourist Retail Core (TRC). The Tourist Retail Core designation is intended to provide for those uses that support and compliment the pedestrian -oriented core. The designation typically includes small scale, boutique -type retail businesses. Service and office uses are generally allowed on either the second floor or on non -Old Town Front and non -Main Street parcels. Residential uses are allowed as ancillary uses when located above the ground floor or in the rear of the lot. Tourist retail uses are generally small businesses occupying no more than 5,000 square feet. Typical uses may include gift shops, restaurants, small hotels, bed and breakfasts, mixed use, antique shops, small hardware/decorator stores, museums, art galleries, flower shops, jewelry shops, clothing shops, custom furniture items, and similar retail uses. d. Community Commercial (CC). The Community Commercial designation includes retail, professional office, and service -oriented businesses that serve the entire community. Community commercial areas typically include neighborhood commercial uses, as well as, larger retail uses including department stores, theaters, restaurants, professional and medical offices, and specialty retail stores. e. Tourist Serving Residential (TSR). The Tourist Serving Residential designation is intended to provide for the wide range of tourist serving overnight accommodations which include senior housing, bed & breakfasts, hotels, motels, motor courts, rental cottages, and hostels. Eating places would be allowed as accessory uses. Camping and R.V. parks would not be allowed. Old Town Specific Plan III - 3 f. Medium Density Residential (MDR). The Medium Density Residential designation (7 to 12 dwelling units per acre) is intended to provide for the development of attached and detached residential development. Typical housing types may include single family detached, single family zero lot line, patio homes, duplexes, townhouses, condominiums, garden apartments and conventional apartments. g. Hieh Density Residential (HDR). The High Density Residential designation (13 to 20 dwelling units per acre) is intended to provide for the development of attached residential developments. Typical housing types may include townhouses, condominiums, garden apartments, and conventional apartments. h. Open Space (OS). The Open Space designation includes both public and private areas of permanent open space along the floodways of Murrieta Creek. This designation is intended to include lands acquired by exaction, easement, fee, and other methods sanctioned by State and Federal law for parkland, for preservation of biological and cultural resources, and for protecting public safety from flood hazards. 3. Land Use District Boundaries Where boundaries of the land use districts appear to follow streets, the boundary shall follow the centerlines of said streets. Where boundaries appear to follow existing property lines, they shall follow said property lines and shall not bisect portions of existing lots of record which are in effect at the time of adoption of this Specific Plan. The boundaries with the Open Space Land Use District along the channel of Murrieta Creek may bisect adjacent parcels. C. LAND USE REGULATIONS This section includes a matrix (Table III-1) which lists the land uses and indicates whether or not each use is permitted (P), conditionally permitted (C), or prohibited (-) in each of the land use districts within the Specific Plan area. When exceptions have been established, they are so noted at the end of the table. Permitted uses for the Medium Density Residential (MDR), High Density Residential (11DR), and Open Space (OS) Planning Areas shall be the same as identified in the Development Code for the Medium Density Residential, High Density Residential and Open Space/Conservation zones, respectively, as periodically amended. Old Town Specific Plan Ili - 4 TABLE III-1 LAND USE MATRIX LIST OF USES TSR HT OTC TRC CC A Adult entertainment businesses Animal hospital Antique sales P P Appliance sales and repair - P Art, photographic studios, galleries, school supplies - C P P Athletic, aerobic and health gyms and weight reducing clinics - P P Auction houses - P C Auditoriums/concert/convention halls C P P Auto service station P Auto Related (including motorcycles): Sales or rental (with ancillary repair facilities in a totally enclosed area) Service and repair Parts and supplies (no on -site repair) Specialty retail C C P P P P P Awnings and canvas goods, sales and service p (within an enclosed building) B Bake (retail only) P P P P Banks, savings and loans, financial institutions (new uses in excess of 1,250 sq. ft. must provide sufficient off-street parking.) P P P Barber shop P P P Bar and cocktail lounge (incidental food service only) C C C Beauty colleges Beauty shop P P Bed and breakfast P P Bicycle rentals P P P Bicycle sales P P P Billiard/pool centers P Blood bank P Blueprint and photocopy services P P Book, gift, stationary, newspaper sales P P Bowling alley Bridal shops/tuxedo and costume rentals Business colleges and professional schools P2,3 P P Business and office services Butcher shop P - P P P P P Town Specific Plan 111- S TABLE TII-1 LAND USE MATRIX LIST OF USES TSR HT OTC TRC CC C Cabinet makingP Camera and film sales (including limited film processing) P P1 P Candy and confectioneries P Car wash - full service P Car wash - self service P C Carpet and floor covering P Catalog sales P P Catering services P P Check cashing services P P P China and glassware sales P3 P Clothing and apparel sales P P Clubs, lodges and meeting halls P P Coin and stampdealers P P Communications and microwave installations To-mmunity care facilities C computers and video equipment P P Convalescent homes Convenience market (with or without the sale of alcoholic beverages) P P3 P Cosmetologist P P p Costume rentals P P Cultural1artist exhibits, and art sales: P C P D Dance halls and discotheques C C C Dance schools and studios P P Day care centers P P P P Delicatessens and sandwich shops P P P Department stores P P Dispensing opticians P P Discoundclub membership stores Drapery and curtain sales P Drug stores and pharmacies P P P Dry cleaning and laundry C P E Educational and tutorial centers P P Electric equipment and supplies (within an enclosed building) P Equipment sales and rental F Farmers market C C Feed, grain and tack sales P Old Town Specific Plan rr` - " TABLE III-1 LAND USE MATRIX LIST OF USES TSR HT OTC TRC CC Finance and insurance offices P P P P Fishing supply stores - P P Floor covering sales - P Florist shops - P P P Fortune telling, spiritualism or similar activity - P P P Funeral parlors - Furniture and home furnishings I - I P P Furniture and upholstery repair and supplies Furriers P P G Game Arcades C C Garden equipment, supply, sales and service Gift, novelty, souvenirs P P P Governmental offices P P P P Grocery store and market (retail only) P P Grocery store, wholesale Gun sales P P H Hardware stores P P Health food stores P P P Hearing aids P Hobby and craft shops P P Home improvement centers Hospitals P Hos ital equipment sales and rental agencies Hotels/motels P P P P I Ice cream and yogurt shops/soda fountains P P P Interior decorating shops P P Instant printing and photo copying services P 2P Insurance agents, brokers and services P P P P J Janitorial supplies P Jewelry sales P P K Kitchen equipment sales P L Laboratories, medical and dental - P P Laundromats P Laundry service C P Lighting fixture shops P Li uorstores C C C Lithographic services P P P Old Town Specific Plan III- TABLE III-1 LAND USE MATRIX LIST OF USES TSR HT OTC TRC CC Locksmith stores - P P Luggage and leather goods - P P3 P Lumber yard - M Machine tools and sales - Mail order businesses - P Mail services, postal boxes for rent P Marine sales/service Medical equipment sales Membership clubs and organizations C - Message centers 1,2 P Mini -storage Mobil home sales Mortuaries Motorcycle sales and service Movie theaters P - P P Music, dance and exercise stores/studios - 1> P N Newspaper offices - P P Newsstand P - P P Night Clubs (with live entertainment) C - C C Nurseries and garden supply stores P Nursing homes O Office, business machine sales P P Orthopedic devices sales P P P Paint, glass, and wallpaper sales P Paper product sales P P Parkin lots/garages P C C C P Parcel shipping/copy/fax center P P Pawnshop - Perfornring arts theater - P P Pet shops - Pac Phono a hic/CD/ta e/record store - P Photo -developing stores - P P Photo ra hic studios P P Picture framingshops P Pin ball and electronic game arcades C C Plumbing and equipment supplies -::t# Private schools - ofessional and medical offices Prffi P P P P Old Town Specific Plan 111- 8 TABLE III-1 LAND USE MATRIX LIST OF USES TSR HT OTC TRC CC Reserved R Radio and TV sales P P Radio and TV broadcasting C2 P Real estate office P P P2,3 P Recording studios P P P Recreational vehicle sales Recycling facilities Religious institution C C C Religious materials sales P P Residential, attached and detached P C Restaurants: Without a full bar, entertainment, or dancing (includes the incidental serving of beer and wine only) With entertainment, dancing, and/or serving beer, wine and distilled spirits P P P] P C C C C Restaurant, fast food without a drive-thru P P P Restaurant, fast food with a drive-thru C - Rooming and boarding houses P P S Second hand/thrift stores - P P Security and commodities brokerage firms P - 13 P Sewing supplies and fabrics - P P Senior citizen housing P Shoe sales and repair - P P Shoeshine stand - P Sin shops - P Skating rinks - Sporting goods stores - P P Sp orts and recreational facilities P P Stationery stores P P Swimming pool ands a, sales and supplies T Tailor shops P P Tanning salons P P Taxidermists P P Telephone and communications store P P Theaters P P P Ticket agency/entertainment P P P Tile sales P Tobacco shops P P Old Town Specific Plan 1II - y TABLE III -I LAND USE MATRIX LIST OF USES TSR HT OTC TRC CC Toy sales P P Travel agencies P P P Trophies and awards P Truck sales/rentals Typewriter and business machine sales and service pz p U Reserved V Vending machine sales and service Veterinarian C Video sales and rentals P P W Watch and clock repair P P Wedding chapels P P Wine tasting facilityP X Reserved Y Reserved Z Reserved P Use is permitted by right in this planning area C Use is permitted with a Conditional Use Permit in this planning area - Use is not Permitted in this planning area 1 Use is limited to under 5,000 gross square feet. 2 Use is limited to either the second floor (or higher) or to non -Old Town Front and non - Main Street parcels. 3 Use is limited to under 2,500 gross square feet. 4 Subject to the standards contained in Chapter 17.40 of the Temecula Municipal Code. 5. Non-residential projects in the Tourist Serving Residential Planning Area must either retain a .predominantly residential character or be developed as a mixed use project. D. SITE DEVELOPMENT STANDARDS This section contains the development standards tables for the Specific Plan. Table III- 2 contains the site and development standards for the Highway Tourist Commercial (HT), Community Commercial (CC), Tourist Retail Core (TRC) and Tourist Serving Residential (TSR) Land Use Districts. Table III-3 contains the site and development standards for the Medium Density Residential (MDR), High Density Residential (HDR), Old Town Civic (OTC), and the Open Space (OS) Land Use Districts. Town Specific Plan III - 10 Table III-2 DEVELOPMENTSTANDARDS CONIMERCIAL LAND USE DISTRICTS IIT TRC/TSR CC Lot Size and Density Minimum Lot Area (square feet) ` 1 10,000 3,500 8,000 Maximum Dwelling Units per Acre 10 NR 2 0 Lot Dimensions Minimum Width at Required Front Setback Area 60 feet 25 feet 60 feet Minimum Comer Lot Width 100 feet 50 feet 60 feet Minimum Depth 80 feet 80 feet 80 feet Minimum Frontage at Front Property Line 80 feet 25 feet 60 feet Setbacks Minimum Front Yard 25 feet 0 ° 0 ° Maximum Front Yard N/A 10 feet 3 20 feet Minimum Corner Side Yard 10 feet 0 0 Minimum Interior Side Yard 0 0 0 Minimum Rear Yard 10 feet 0 10 feet Minimum Accessory Building to Interior Side Yard 10 feet 10 feet 10 feet Minimum Building Separation 0 0 0 Other Maximum Stories/Height 3/50 feet 3/50 feet s 2/30 feet Maximum Lot Coverage 70% 100% 70% Minimum Required Landscaped Open Space 20% 0% e 10% Maximum Fence, Wall or Hedge Height 6 feet 6 feet 6 feet Minimum Private Open Space/Unit N/A 150 sq. ft. N/A 1. This requirement does not apply to existing legal lots. 2. As a Mixed Use Project on the upper floors and in the rear lot areas only. 3. Building shall be setback exactly ten feet if no covered arcade or porch is provided at the front of the building. 4. If a continuous porch or arcade (minimum 8 feet wide) is provided at back of sidewalk (public right-of-way) 5. The maximum building height in the TSR Planning Area is limited to 2 stories or 30 feet. The requirements of Section III.F.8 also apply increases in building height in this Area. 6. Landscaping of the front yard for residential projects in the TSR Planning Area is required. Limited accent landscaping should be provided whenever possible in all other circumstances. Old Town Specific Plan 111 - " TABLE 1II-3 DEVELOPMENT STANDARDS RESIDENTIAL & PUBLIC LAND USE DISTRICTS MDR I RDR OTC OS Lot Area and Density Minimum Lot Area (square feet.) 7,000 7,000 None None Maximum Dwelling Units per Acre 1 12 20 N/A N/A Lot Dimensions Minimum Width at Required Front Setback Area 40 feet 30 feet 0 0 Minimum Average Lot Width 1 50 feet 50 feet 0 0 Setbacks Minimum Front Yard 20 feet 20 feet 10 feet 10 feet Minimum Corner Side Yard 15 feet 15 feet 0 0 Minimum Interior Side Yard 15 feet 2 15 feeC 0 0 Minimum Rear Yard 20 feet 20 feet 10 feet 10 feet Minimum Accessory Building to Interior Side Yard 5 feet 5 feet 5 feet 5 feet Minimum Separations Between Buildings One Story 10 feet 10 feet 20 feet 0 Two Story 15 feet 15 feet Three Story 20 feet 20 feet N/A N/A Other Requirements Maximum Height 35 feet 50 feet 18 feet 18 feet Maximum Lot Coverage 35% 30% 50% 5% Minimum Required Landscaped Open Space 25% 30% 10% 80% Minimum Private Open Space/Unit 200 sq.ft. 150 sq.ft. N/A N/A 1 This requirement does not apply to existing legal lots. 2 The sum of both side yard setbacks. Distance between structures not less than 10 feet. 3 Higher maximum densities may be allowed by the City Council pursuant to the Village Center provisions described in the General Plan. Old Town Specific Plan III -12 E. RELATIONSHIP TO OTHER CODES 1. Development Code Many provisions of the Development Code (Municipal Code) will continue to apply in the Old Town Specific Plan when they do not conflict, undermine, or counteract the provisions of the Specific Plan. For purposes of consistency and clarity, special regulations or standards that are not addressed in this Specific Plan will be used by the Director of Planning to guide and control development in the Old Town area. Examples of Development Code provisions that apply to development with Old Town include, but are not limited to, the following: ■ The Administration of Zoning — Chapter 17.03, as amended ■ Permits — Chapter 17.04, as amended • Development Plans — Chapter 17.05, as amended ■ Supplemental Development Standards - Chapter 17.10, as amended • Off -Street Parking and Loading — Chapter 17.24, as amended ■ Water Efficient Landscape Design - Chapter 17.32, as amended ■ Telecommunications Facility and Antennas - Chapter 17.40, as amended 2. Conflicts Between the Specific Plan and Development Code Where there is a conflict between the regulations of the Development Code and this Specific Plan, the regulations provided herein shall prevail. Where direction is not provided in this Specific Plan, the provisions of the Development Code shall prevail. The development standards contained herein are minimum requirements. This provision shall not be used to permit uses, architectural styles or procedures not specifically authorized by this Specific Plan or the Development Code. 3. Other Applicable Codes and Codes All construction and development within the Specific Plan area shall comply with applicable provisions of the California Building and Fire Codes and the various related mechanical, electrical, plumbing codes, and the subdivision ordinance, as adopted by the City Council. In cases of a conflict between the provisions of any such code and this Specific Plan, the provision which most serves to protect health, safety, and welfare of the community shall apply and the Director of Planning shall resolve the conflict utilizing the Goals and Objectives of this Specific Plan. Old Town Specific Plan 111-1 3 4. Other Special Regulations and Standards Examples of other codes and regulations that specifically apply to development within Old Town include, but are not limited to, the following: ■ Adult Business Ordinance ■ Mount Palomar Lighting Ordinance ■ Subdivision Ordinance F. SUPPLEMENTAL AND SPECIAL USE STANDARDS The following supplemental development standards apply to development within the Old Town Specific Plan. The supplemental and special use standards include sidewalk cafes, vending carts, mixed use development, and bed and breakfast facilities, as well as other general supplemental requirements. 1. Sidewalk Cafes a. Intent. Sidewalk cafes on public streets can enhance the pedestrian ambiance of Old Town and are encouraged. For the purposes of this section, a sidewalk cafe is defined as any group of tables and chairs, and related decorative and accessory devices, situated in the public sidewalk or along the private porches and arcades in connection with the consumption of food and beverage sold to the public from an adjoining indoor restaurant. b. Sidewalk Cafes Permitted. A sidewalk cafe may be permitted only in land use districts which allow indoor restaurants. A sidewalk cafe may be located on public sidewalks, private porches, courtyards and arcades immediately adjacent to and abutting the indoor restaurant which operates the cafe, provided that the area in which the sidewalk cafe is located extends no farther along the sidewalk's length than the actual sidewalk frontage of the operating indoor restaurant and all other applicable provisions of this section are fulfilled. C. Development Plan and Encroachment Permit Required. Sidewalk cafes may be permitted with the approval of an Administrative Development Plan, in conformity with the requirements of the Specific Plan, and with approval of an Encroachment Permit for areas located with the public right-of-way. Both of these permits may be denied, approved, or approved subject to conditions of approval. Town Specific Plan 111- 14 d. Requirements. Sidewalk cafes shall comply with the following requirements. i. An indoor restaurant may be permitted to operate only one sidewalk cafe and each sidewalk cafe shall be confined to a single location on the sidewalk. ii. A sidewalk cafe may be permitted only where the sidewalk or porch is wide enough to adequately accommodate both the usual pedestrian traffic in the area and the operation of the proposed cafe. There shall be a minimum 48" clear distance free of all obstructions, in order to allow adequate pedestrian movement. Fjj SIDEWALK la! any Iobshucllan iii All outdoor dining furniture in the public right-of-way, including tables, chairs, umbrellas, and planters, shall be movable. iv. Umbrellas must be secured with a minimum base of not less than 60 pounds. Outdoor heaters, amplified music, or speakers shall be reviewed at the time of application for a Development Plan. V. No signage shall be allowed at any outdoor cafe except for the name of the establishment on an awning or umbrella valance. vi. Sidewalk cafes do not require the provision of additional off-street parking. Old Town Specific Plan 111-15 vii. If a physical barrier is required by the Department of Alcoholic Beverage Control to serve alcoholic beverages, the design and permanency of the barrier shall be approved by the Director. The physical barrier needs to conform with the design guidelines in Section IV of the Specific Plan. e. Conduct of Business and Hours of Operation. All sidewalk cafes shall comply with the following performance standards. i. A sidewalk cafe may serve only food and beverages prepared or stocked for sale at the adjoining indoor restaurant. ii. The outdoor preparation of food and busing facilities is prohibited at sidewalk cafes. iii. The presetting of tables with utensils, glasses, napkins, condiments, and the like is prohibited. All exterior surfaces within the cafe shall be easily cleanable and shall be kept clean at all times by the permittee. iv. Trash and refuse storage for the sidewalk cafe shall not be permitted within the outdoor dining area or on adjacent sidewalk areas and the permittee shall remove trash and litter as it accumulates. The permittee shall be responsible for maintaining the outdoor dining area, including the sidewalk surface and furniture and adjacent areas in a clean and safe condition. V. All furniture used in the operation of an outdoor cafe shall be removed from the sidewalk and stored indoors whenever the indoor restaurant is closed. vi. The City shall have the right to prohibit the operation of a sidewalk cafe at any time because of anticipated or actual problems or conflicts in the use of the sidewalk area. Such problems and conflicts may arise from, but are not limited to, scheduled festivals and similar events, parades, repairs to the street or sidewalk, or emergencies occurring in the area. To the extent possible, the permittee will be given prior written notice of any time period during which the operation of the sidewalk cafe will be prohibited by the City. f. Suspension or Revocation. The development plan and encroachment permit may be suspended or revoked, following notice to the permittee and a public hearing, upon a finding that one or more conditions of approval for the permit or the requirements of this section have been violated, or that the sidewalk cafe is being operated in a manner which Old Town Specific Plan 111 - /6 constitutes a nuisance, or that the operation of the sidewalk cafe unduly impedes or restricts the movement of pedestrians past the sidewalk cafe. 2. Vending Carts a. Purpose. Outdoor vending carts on private property promote public interest by contributing to an active pedestrian environment. However, reasonable regulation of outdoor vending carts is necessary to protect the public health, safety, and welfare. The purpose of this section is to set forth the conditions and requirements under which outdoor vendors may be permitted to operate on private property within the Specific Plan area. b. Vendor Permit Required. It shall be unlawful to sell, or offer for sale, any food, beverage or merchandise on any property within the Specific Plan area without first obtaining a Vendors Permit. Applications for a vendors permit shall include a description of the type of merchandise or food to be sold, a detailed description and photograph of the cart, and the approval of the owner of the site where the cart will be located. Vending Permits shall be reviewed and approved by the Director of Planning. The Director may apply any conditions necessary to protect the public health, safety, and welfare. C. Vending Cart Requirements. Vending carts shall comply with the following requirements. i. All vending carts shall be located only on privately owned, developed commercial property. There should be at least 150 square feet of useable or recognizable plaza or courtyard area for each vending cart. ii. The design and appearance of the vending cart shall be consistent with the carts in use between 1890 and 1920 in a character consistent with the Design Standards in Section IV of the Specific Plan. Colors used in conjunction with any vending carts located in the Old Town Specific Plan area shall be consistent with the Sherwin-Williams Preservation Palette. iii. Any umbrellas or accessory items used with vending carts shall be made from high quality canvas, utilize a monochromatic color scheme consistent with the Preservation Palette and have no written or graphic advertising. iv. No cart shall exceed 4 feet in width, 8 feet in length, and 8 feet in height. Town Specific Plan 111- 17 V. Vending carts should be free of all obstructions within a six-foot perimeter. vi. No advertising, except the posting of prices and product identification is permitted on any vending cart. The total allowable square footage for vendor cart signage shall not exceed four square feet on up to two opposing sides of the cart. d. Conduct of Business and Hours of Operation. All vending carts shall comply with the following performance standards. i. Operate only between 6 a.m. and 10 p.m. unless in conjunction with an approved special event. ii. All items for sale to shall be placed only in, on or under the vending cart. No additional merchandise preparation or sales table, crate, carton, rack, or any other device to increase the selling or display capacity of the cart shall be used unless it has been approved in writing by the Director of Planning. iii. Shall not solicit or conduct business with persons in motor vehicles. iv. Shall not operate any loud speaker, public address system, radio, sound amplifier, or similar device. V. All vending carts shall require an approved City of Temecula business license. vi. Vending carts selling food or beverages shall comply with the requirements of the Health Department and shall provide a trash receptacle for public use. vii. Shall clean up the area around where the vending cart had been. This includes removing and disposing of all trash or refuse. viii. The Director of Planning may require that the vending cart be removed from the location and stored out of public view when not in use. Old Town Specific Plan III - 18 e. Denial Suspension or Revocation of a Vending Permit. Any license may be denied, suspended, or revoked in accordance with the procedures in the Development Code for any of the following causes: i. Fraud or misrepresentation contained in the application for the license. ii. Fraud or misrepresentation made in the course of carrying on the business of vending. iii. Conduct of the licensed business in such manner as to create a public nuisance, or constitute a danger to the public health, safety, welfare, or morals or inconsistent with any conditions of approval. iii. Conduct of the business which is contrary to the provisions of this section or the conditions of approval. 3. Mixed Use Projects a. Purpose. The development of mixed use projects can present unique design issues not encountered in more conventional single use projects. The primary design issue relates to the need to successfully balance the requirements of commercial and residential uses. Typical examples include: a residential uses need for privacy and security, with the needs of commercial uses for access, visibility, parking and loading. For the purpose of this Specific Plan, mixed use projects are defined as developments which combine both commercial and residential uses or structures on a single lot, or as components of a single development in the Tourist Retail Core and Tourist Serving Residential Planning Districts. The uses may be combined either horizontally or vertically on the site. This means with office and residential uses on upper floors with retail on the ground floor, or with commercial uses on the primary street and residences on the rear of the property. b. Conditional Use Permit Required. A mixed use project may only be established after first obtaining a Conditional Use Permit, as described in the Development Code, and in conformance with the requirements of this section. Old Town Specific Plan III -1 C. Limitations and Requirements. i. Mixed use projects that provide commercial space on the ground floor with residential units above (vertical mix) are encouraged though residential units behind commercial space (horizontal mix) are also allowed. ii. The number of residential dwelling units shall be based on the carrying capacity and design characteristics of each project. iii. Residential units may not occupy ground floor space fronting on Old Town Front or Main Streets. iv. Structures with heights greater than two stories shall set back on the street frontage sides for the third floor portion of the structure a minimum of 10 feet. V. All roof mounted equipment shall be screened in accordance with the requirements of the Development Code. Special consideration shall be given to the location and screening of noise generating equipment such as refrigeration units, air conditioning, and exhaust fans. Noise reducing screens and insulation may be required where such equipment has the potential to impact residential uses. vi. If onsite resident parking is provided, separate access drives and parking facilities should be provided for residential uses and commercial uses whenever possible. vii. Residential visitor parking and commercial parking may be located within the same location/facility. 4. Bed and Breakfast Establishments a. Purpose. The purpose of this Section is to provide standards for the development/operation of Bed and Breakfast establishments in Old Town. b. Requirements. All Bed and Breakfast Establishments in Old Town shall comply with the provisions contained in Chapter 17.10 of the Temecula Municipal Code, except for the minimum lot size and the requirement that the primary residence be the principle use of the site. Old Town Specific Plan III - C. Supplemental Requirements. In addition to the requirements stated above, the following shall also apply to Bed and Breakfast Establishments within the Specific Plan. i. Off-street parking shall be provided at a ratio of one space for each bedroom available for rent in addition to the parking required for the primary dwelling unit. This requirement can be satisfied through a centralized public parking lot if the owner participates in a parking assessment district and the facility is located nearby. ii. Signage shall be limited to one on -site sign not to exceed 6 square feet in area. The sign may be freestanding. iii. The exterior appearance of the structure housing the Bed and Breakfast should be either a Queen Anne (Victorian), Bungalow, or other residential style of building in existence in the early 1900's. 5. Minimum/Maximum Storefront Width For purposes of regulating the development of, and the division of existing storefronts, no storefront facing a public street shall be less than 20 feet wide or more than 100 feet wide. 6. Minimum Commercial/Office Building Subdivision Size For purposes of regulating the permanent subdivision of the interior (floor to ceiling walls) of an existing storefront on the first floor, no building in the Specific Plan area shall create interior retail space intended for business purposes less than 500 gross square feet. Exceptions to this requirement may include restrooms and storerooms. 7. Loading Facilities Loading and unloading facilities shall be visually screened from access streets and adjacent properties and constructed in a manner to reasonably contain and restrict emission of noises typically attributed to such function. When screening of loading and unloading facilities is physically not possible, the facilities shall be architecturally integrated into the overall design of the building. 8. Building Height Increases The City Council may approve increases in building height, above the number of floors and total height in Tables III-2 and III-3, for any project that complies with the architecture and design guidelines and achieves the objectives, goals, and policies of the Old Town Specific Plan. Old Town Specific Plan 111- 21 9. Roof Mounted Equipment All roof mounted equipment shall be screened in accordance with the requirements of the Development Code. Special consideration shall be given to the location and screening of noise generating equipment such as refrigeration units, air conditioning, and exhaust fans. Noise reducing screens and insulation may be required where such equipment has the potential to impact residential uses. 10. Parking Requirements To minimize the amount of land committed to parking lots within the Old Town area, not all uses within the Specific Plan will be required to provide onsite parking. In most cases, the determination whether or not parking will be required will be based upon the Land Use District and the type of business. When onsite parking is required, the standards contained in Chapter 17.24 of the Temecula Municipal Code will normally be used to determine the number of required parking spaces. The following is a list of Land Use District parking requirements within the Old Town Specific Plan. ❑ Tourist Retail Core District — Onsite parking is required only for hotels, motels, and banks and financial institutions that are more than 1,250 square feet is size. (The parking requirement for bed and breakfast establishments are contained in Section III.F.4.c of this Specific Plan.) ❑ Community Commercial District — All uses shall provide onsite parking. ❑ Highway Tourist Commercial District — All uses shall provide onsite parking. ❑ Old Town Civic District — Onsite parking should be provided when practical. ❑ Tourist Serving Residential District — Onsite parking is required only for hotels and motels. (The parking requirement for bed and breakfast establishments are contained in Section III.F.4.c of this Specific Plan.) ❑ Medium Density Residential District — All uses shall provide onsite parking. ❑ High Density Residential District — All uses shall provide onsite parking. ❑ Open Space District — Onsite parking should be provided when practical and appropriate for the use. However, the Director may require assembly uses with high parking demands to provide additional off-street parking. In making this determination the Director can consider the size and location of the proposed use, the hours of operation, the availability of nearby on- and off-street parking resources, and its proximity to other assembly and restaurant uses. Old Town Specific Plan «< - 22 11. Parking Location Restricted Locating parking lots between the front property line and any building is prohibited in the Tourist Retail Core planning area. 12. Vehicle Access Restricted Direct vehicle access shall not be allowed from a private property onto Old Town Front Street and Main Street (between Old Town Front Street and Murrieta Creek). Vehicular access from a private parking lot to Old Town Front Street or Main Street shall be to a side street or public parking areas. The Director of Planning may allow exceptions only in case of landlocked properties. 13. Pujol Access Standards Due to the higher volume of anticipated traffic on Pujol Street, the following standards are provided: a. Driveways on adjacent properties shall be placed as far from one another as possible; b. Only one driveway per Pujol frontage shall be allowed, except for emergency access, on lots with under 200 feet of Pujol Street frontage; C. Additional driveways shall only be allowed on lots with over 200 feet of Pujol frontage; and d. Driveways on the same property shall be located at least 250 feet apart. 14. Exterior Lighting a. All exterior lighting fixtures shall comply with the requirements of the Mount Palomar Lighting District. b. All lighting of the building, landscaping, parking lot, or similar facilities, shall be so shielded and directed as to reflect away from adjoining properties. C. Security lighting fixtures are not to be substituted for parking lot or walkway lighting fixtures and are restricted to lighting loading, storage areas, and similar service locations. d. It is highly desirable and recommended for tenants and property owners to utilize low voltage "tivoli" or "dazzler" to decorate building facades. Old Town Specific Plan III - 23 G. SIGN REGULATIONS The intent of these regulations is to establish specific standards for all exterior signage that will ensure continuity, consistency, and harmony with the architectural quality of the Old Town environment as it may have appeared in the early 1900's. 1. Applicability These regulations shall apply to all signage within the Tourist Retail Core and Tourist Serving Residential areas of the Specific Plan. Signage within the Highway Tourist Commercial District, Community Commercial, Medium Density Residential District, and High Density Residential Land Use Districts shall comply with the sign requirements contained in the Development Code and the Signage Design Guidelines contained in Section IV.J of the Specific Plan. 2. Permit Required Unless specifically stated in these regulations, a sign permit is required prior to placing, erecting, moving, reconstructing, altering, or displaying any sign within the Specific Plan. 3. Prohibitions No person shall erect, re -erect, construct, enlarge, alter, move, improve, remove, convert, or equip any sign or sign structure or cause or permit the same to be done contrary to, or in violation of, the provisions of these sign regulations. All signs not expressly permitted by this Section are prohibited. No application for sign permit or other application for a prohibited sign shall be accepted, acted upon, or approved. 4. Prohibited Signs in Old Town ❑ Freestanding signs on lots with less than 300' of road frontage ❑ Roof mounted signs ❑ Animated signs, including time and temperature displays ❑ Rotating, moving, emitting, or flashing signs ❑ Balloon signs ❑ Ambient air balloons ❑ Internally illuminated signs, including front and back lit awning and window locations ❑ Neon tube signs ❑ Window signs above the second story ❑ Paper, cloth, or plastic streamers or bunting - except holiday decorations ❑ Formed plastic or injection molded signs ❑ Statues used for advertising ❑ Traffic sign replicas ❑ Vehicle signs Town Specific Plan III - 24 ❑ Any sign prohibited by the Development Code and not expressly permitted in this Specific Plan 5. Permitted Signs ❑ Wall Mounted Signs (business identification) ❑ Supergraphics ❑ Monument Signs ❑ Window Signs ❑ Under Canopy Signs ❑ Awning Signs ❑ Projecting Signs ❑ Indirectly Illuminated Signs ❑ Temporary A -Frame or Sandwich Board Signs 6. Sign Standards a. Wall Mounted Signs. Maximum of one square foot per linear frontage foot of business establishment. To be located no higher than the lowest of the following points: • 25 feet above grade; • Bottom of the sill line of the second floor windows; or • Cornice line of the building. b. Supergraphics. The purpose of allowing wall supergraphics is to allow the advertising or depiction of products that may have been available in an 1890's marketplace. A supergraphic is a mosaic, mural, painting, graphic art, or combination thereof which is professionally applied to a building that does not contain any brand name, product name, letters of the alphabet spelling or abbreviating the name of any product, company, profession, or business, or any logo, trademark, trade name, or other commercial message. Maximum size shall not exceed 60% of wall surface. C. Monument Signs. A maximum of one double sided sign per street frontage if said street frontage is over 150 feet. Height of sign shall not exceed 6 feet above grade. Width shall not exceed 4 feet. Each tenant placard shall not exceed 12 inches" high. Sign may only be indirectly illuminated, internal illumination is prohibited. No monument signs are allowed if the street frontage is less than 150 feet. d. Permanent Window Signs. On ground level, coverage shall not exceed 20 percent of the total window and door area visible from the exterior of the building; on second level, coverage shall not exceed 30 percent per window. (No window signs are permitted above second floor). Old Town Specific Plan III - 25 C. Awning Signs. On ground floor level; 20 percent maximum coverage allowed of the total exterior surface area of each awning. On the second floor level and above; 10 percent maximum coverage allowed of the total exterior surface area of each awning. Internal illumination prohibited. f. Projecting Signs. One per business allowed; maximum size may not exceed 3 square feet and shall not extend more than 3 feet from the wall surface. No illumination is allowed. Projecting signs shall only be attached to buildings, not to poles or other signs. Projecting signs may encroach into the public right-of-way a maximum of 3 feet subject to the approval of the Director of Planning. Old Town Specific Plan III - 26 g. Under Canopy Signs. One per business allowed under a canopy, roof, covered walkway, or porch; maximum size of 3 square feet per door entrance; minimum of 7 feet of vertical clearance shall be required from walking grade to the bottom of the sign. h. Temporary Signs. Temporary grand opening and special event signs are allowed for each business establishment on the exterior wall. Signs shall not be attached to any other freestanding element (porch balustrade, garden wall, tree, monument sign, vehicle, etc.). Signs shall be constructed of cloth, canvas, or other durable material. Plastic or vinyl banner signs are not permitted. The use of neon colored/day glow banner signs is also prohibited. All temporary signs, except for A-Frame/Sandwich Boards, shall abide by the provisions of the Ordinance Regulating Temporary Signs, as amended. A-Frame/Sandwich Board Sign. One A -frame or sandwich board sign allowed per property on Friday, Saturday, Sunday, and nationally designated Monday holidays. The size shall not exceed 3.5 feet high and 2 feet wide. A -frame signs shall not block the sidewalk and may not be illuminated. No permit is required for A -frame and sandwich board signs which comply with these provisions. Old Town Specific Plan III - 27 Menu Boards. One menu board, up to 4 square feet in area, is allowed for each restaurant or other eating establishment. Menu Boards may contain only the name of the establishment and the food available inside. The menu board must be located on a wall adjacent to the main customer entrance. Appropriate location for menu board . sign k. Multi -Tenant Project Signs. Any project that proposes to provide space for more than one tenant shall indicate the size and approximate location of all signs to be erected on the property at the time of initial application. Signs shall be shown on elevation drawings with accurate dimensions provided. Old Town Specific Plan 111 - L6 H. GENERAL PROVISIONS AND REGULATIONS The following regulations apply within all land use districts in the Old Town Specific Plan area. 1. Land Use Determinations. Whenever a particular type of land use is not listed in Table III-1, the Director of Planning shall determine if that unspecified land use is consistent with the overall intent of the district, in which the use is proposed; and is consistent with other permitted or conditional uses in that district. The Director's determination shall be final. 2. Nonconforming Uses and Structures. Where, at the time of passage of this Specific Plan, a lawful use of land or structure exists which would not be permitted by the regulations imposed by this Specific Plan, such use or structure may be continued indefinitely unless one of the following is involved: ❑ If the nonconforming use vacates the property and the nonconforming use is not reestablished within one year, the use shall not be reestablished. ❑ If the nonconforming use voluntarily vacates the property after the year 2013 for any reason, a nonconforming use shall not be reestablished. ❑ If more than 50% of a nonconforming structure is damaged or destroyed, the nonconforming structure shall not be reestablished. ❑ If more than 25%, but less than 50%, of a nonconforming structure is damaged or destroyed, the structure may be replaced if the exterior of the repaired structure substantially conforms to the architectural standards contained in Section IV of this Specific Plan. 3. Adaptive Re -use Parking Waiver. In order to preserve historic or unique existing buildings in the Old Town Specific Plan area, additional off-street parking shall not be required for the use or intensification of use for these buildings. These designated historic buildings and structures are identified in the Old Town Historic Preservation District Ordinance (Section V.0 of the Specific Plan). 4. Public Right -of -Way Encroachments. In order to accomplish the overall design theme required by this Specific Plan, it may be appropriate to allow certain building accessories (e.g. awnings, trellises, stairs to porches, or projecting signs) to encroach into the public right-of-way. The Director may approve such encroachments under the Development Plan approval process provided in the Development Code. Old Town Specific Plan III - 5. Temporary Use Permits. Permits for temporary uses in the Old Town area shall conform with the provisions of Section 17.04.020 of the Temecula Municipal Code except that the outdoor display and sales of merchandise, customarily sold by the permanent Old Town business, is limited to four events per year. Each event is not to exceed four (4) consecutive days. 6. Setback Area Encroachments. Adjustments to setback requirements of up to 25% may be approved or conditionally approved by the Director of Planning if it can be demonstrated that the encroachment is otherwise compatible with the Specific Plan, and will enhance the overall appearance of the project or serve a particular useful function for the general public. Common examples of these encroachments include awnings, canopies, marquees, trellises, stairs, and other similar desirable architectural items. 7. Violations. It shall be unlawful for any person to violate any provision of this ordinance. Any person violating any provision of this ordinance shall be deemed guilty of an infraction or misdemeanor as hereinafter specified. Such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this ordinance is committed, continued, or permitted. Any person so convicted shall be, guilty of an infraction offense and punished by a fine not exceeding $100.00 for a first violation; and guilty of an infraction offense and punished by a fine not exceeding $200.00 for a second infraction. A third and any additional violation shall constitute a misdemeanor offense and shall be punishable by a fine not to exceed $1,000.00 or 6 months in jail, or both. Notwithstanding the above, a first offense may be charged and prosecuted as a misdemeanor. Payment of any penalty herein shall not relieve a person from the responsibility for correcting any violation. Old Town Specific Plan 111- 30 IV. DESIGN GUIDELINES CONTENTS: A. Purpose and Intent B. Architectural Style Guidelines C. Site Planning Guidelines D. Parking Lot Guidelines E. Landscape Guidelines F. Lighting Guidelines G. Public Art Guidelines H. Outdoor Dining /Sidewalk Furniture Guidelines L Paving Material Guidelines J. Sign Design Guidelines K. Streetscape Guidelines A. PURPOSE AND INTENT Page IV-1 Page IV-2 Page IV-25 Page IV-35 Page IV-37 Page IV-40 Page N-41 Page IV-45 Page IV-46 Page IV-47 Page IV-51 The purpose of these Guidelines is to define an architectural vocabulary that will provide a measure of continuity to Old Town's commercial and higher density residential buildings. While some basic and consistent architectural principles are defined, variety and individual expression within this framework are encouraged. The community desires a character of architecture that will reflect Temecula Valley's history, natural landscape and climate. Architectural character is formed by the basic elements of a building and the manner in which they are combined. The desired character for buildings in Old Town is derived from early California (1890-1920) architecture, a design vocabulary reflected in the state's early missions and adobes. Its use has been a tradition for over 200 years in many communities of Southern California. There have been several periods of interpretation, revival and change; and many variations found in different communities of the state. While early California or Old Town Western architecture is not considered a specific style, several styles are often considered within it - Gold Rush, Spanish Colonial, and Monterey. In Old Town, these three styles shall be the most desirable historic prototypes for all new development. A Historical Note: Early California architecture came about as a result of the state's first settlers adapting Spanish and Mexican architectural precedents to the special conditions of California. The process normally meant simplifying the more complex and ornate Spanish examples and their details, adjusting to the more Spartan economy and conditions, different building materials, and primitive workmanship of California. As American conquest of California proceeded, the new settlers brought elements of eastern United States and Classical Revival architecture, combining them with the early adobe and mission examples. The result was what we now call the Monterey Style. Many restored buildings of this period and style are found throughout the state, with the largest number in Monterey, and a well-known example, the Casa de Bandini, in San Diego's Old Town. Old Town Specific Plan IV- I B. ARCHITECTURAL STYLE GUIDELINES Old Town Western Style. The most prevalent architectural style existing in the Old Town environment can best be described as Gold Rush Style or Western Frontier Style. This architecture has some common design elements depicted below. Guideline 1 - Graphic Depiction of Common Design Elements Are Shown in the Following Graphic. Board and t wood siding / 6 X 6 Wood braced columns Shed roof with wooden shakes False front "westem" parapet Territorial pediment balustrade fascia �— Match canopy 1 L Multi -me L. 40" Bulkhead 30" Bulkhead (typical) elevations double doors (maximum) Wooden double doors 4 X 4 Wood columns with 6 X 6 bases Design Elements of the Western Sytle Town Specific Plan IV-2 Guideline 2 - Recommended Western Style Elements The qualities and design elements of Western Style buildings in Old Town include: ■ ten foot high ceiling preferred on the first floor; ■ vertical or horizontal wood siding; ■ narrow wood porches with single shed roofs or wood canopies; ■ one and two story building mass; ■ significant wall articulation devices (porches, overhangs) ■ false roof parapets with heavy architectural cornice; ■ simple or unpainted color schemes; ■ rectangular facade; ■ regular or traditional commercial storefront window rhythm; ■ window shutters; ■ balconies with balustrade; ■ exterior wooden stairways; and ■ knee bracing at posts, balconies and overhangs. Guideline 3 - Not Recommended Western Style Elements The elements to avoid include: ■ highly reflective surfaces; ■ large blank, unarticulated wall surfaces; ■ unpainted concrete precision block walls; ■ reflective glass; ■ high tech plastic appearing siding; ■ irregular, modernistic window shapes and rhythm; ■ square "boxlike" buildings; ■ mix of unrelated styles (i.e. rustic wood shingles and polished chrome); and ■ metal window sashes. Old Town Specific Plan IV- 3 Guideline 4 - Solid to Void ■ Storefront construction should be approximately 60% transparent (void) with a maximum of 85% transparency. ■ Blank, solid end walls or side walls visible from public view should be avoided. If such walls are necessary for interior reasons, the building wall should receive some form of articulation of add -on elements such as awnings, cornice bands, arcades, trellises, etc. Guideline 5 - Roof Pitch and Materials ■ Roofs may be flat or sloped. Western false front parapet walls are encouraged but blank parapet walls around flat roofs are not allowed without heavy architectural cornice. The visible portion of sloped roofs should be sheathed with a roofing material having texture meaningful at the pedestrian scale, such as standing seam metal roofing, wood shingle, or tile. ■ Roof form should be consistent and integrated into the building composition. ■ The roof should be designed to screen rooftop equipment from all sides. ■ RadicaVsteep roof pitches which create overly prominent or out -of -character building such as A -frames or chalet style buildings are not recommended in Old Town. ■ Roofs or parapet walls should wrap around the entire building to avoid a cheap "stage -set" look. Wood shingles, composition roofing material, tile, slate, or painted metal seam roofs meeting City Codes are acceptable. Old Town Specific Plan IV - Guideline 6 - Parapet Walls Parapet walls are an integral component of western architecture. In addition to providing visual screening of roof top equipment, they provide opportunity to establish an architectural character and display of signs. The integration of parapet walls into building design is encouraged. Parapets shall conform to the following guidelines. ■ Parapet walls shall completely screen the roof behind and all roof mounted equipment. ■ They shall be finished on any side visible from the street with materials compatible with those predominantly used on the building. ■ Parapet walls visible from rear or side yards shall be finished as above. However, they may utilize exterior plaster in lieu of wood siding. ■ Parapet walls shall utilize significant ornamental wood trim at the top, or utilize a heavily ornamented cornice. Typical Western Style Parapet Town Specific Plan IV - 5 Guideline 7 - Exterior Building Wall Materials Exterior building walls are encouraged to use the following materials in an appropriate arrangement. These include: ■ Board and batten wood siding (unfinished preferred); • minimum of 12 inches with 1 inch by 2 inch bats ■ Horizontal wood siding (finished or unfinished); • horizontal'V'joint • horizontal channel joint ship lap with a minimum 3/8 inch channel • beveled ■ Brick; ■ Stone (local granite is preferred); ■ Adobe block (no bearing walls); and ■ Vertical wood siding (such as plywood) without batten. H I Board and Batten Brick Shiplap Local Stone Old Town Specific Plan IV-6 Guideline 8 - Windows ■ Wooden sash windows with decorative pediment are recommended. ■ Storefront windows typically projected out from wall surface and were multi- lite. ■ Second floor windows were typically wooden sash, double hung, traditional windows. Window shutters are recommended. ■ Plate glass windows are acceptable if they appear to be multi-lite windows or if the glass is "Tom of the Century" quality. Guideline 9 - Porch/Canopy Columns ■ Columns are typically 4x4 or 6x6 lumber which is decoratively shaped to depict a base, shaft, and capital. ■ Metal columns are acceptable. ■ Decoratively braced columns are recommended. Old Town Specific Plan IV- 7 Guideline 10 - 360' Architecture ■ All sides of a building receive stylistic architectural treatment except as required by Fire and Building Codes where noncombustible materials (concrete block) may be needed in areas immediately adjacent to other structures. Guideline 11 - Color Palette ■ The wide range of colors which might have been used for exterior decoration in the late 1800's are well represented in the Sherwin-Williams Heritage Colors. These are 40 historic 19th Century hues that capture the grace and elegance of another era. Buildings of this style may remain unpainted, however painting is encouraged. While use of these colors is recommended, other similar colors will be considered. The Director may also identify other color palettes for Old Town that have the potential to achieve the same results. Old Town Specific Plan IV- 8 2. Spanish Colonial Style Spanish Colonial and Mission Style architecture are two very prolific historic architectural styles in Southern California. This style was very common in the late 1800's and early 1900's and is therefore important to include as a prominent building style in Old Town. Guideline 1 - Graphic Depiction of Common Design Elements are shown in the following Graphic. Pitched Roofs Red Clay rile Roofs Shed and Exposed rotten and gable roofs ® rMulfl-life inset windows r�}er.}ails Thick Courtyards Massive arches) Wall Openings and columns Design Elements of the Spanish Colonial Style A Stucco Little or no roof overhang Old Town Specific Plan IV - 9 Guideline 2 - Recommended Spanish Colonial/Mission Style Elements The qualities and design elements of Spanish Colonial/Mission style buildings include: ■ one or two story building heights; ■ red clay tile roofs; ■ shallow -pitched tile roofs 2:12 to 6:12 pitch; ■ solid, massive walls; ■ smooth stucco wall surfaces; ■ arcades of round headed or flat arches, set on columns of wood or stucco; ■ enclosed courtyards; ■ recessed wall openings; ■ white or soft pastel earth tone colors; and, ■ ceramic tile accents (planters, benches, fountains, etc.). Guideline 3 - Not Recommended Spanish/Colonial/Mission Style Elements The elements to avoid include: ■ high pitched or extensive flat roofs; ■ simple, box -like architecture; ■ rustic, "woodsy" architectural styles; ■ large roof/cave overhangs; ■ extensive use of wood, glass, or metal ■ slumpstone walls; ■ wood siding; ■ dark wall colors; ■ metal window sash; and ■ window frames flush with exterior wall. Guideline 4 - Solid to Void ■ Storefront construction is recommended to be between 40% and 70% transparent. Old Town Specific Plan Iv- 10 Guideline 5 - Roof Pitch and Materials ■ Roof pitch for Spanish Colonial/Mission style architecture is typically low pitch. A 3:12 to 6:12 (vertical: horizontal distance) roof pitch is recommended for all main roof surfaces, with the exception of arcades or colonnades. ■ Roof pitch for attached arcades or colonnades is recommended to be a minimum 2:12. Roof types are recommended to be restricted to low pitched gable roofs, with the occasional use of hip or shed roof as an accent at the end of the building. The use of a mansard, A -frame, jerkin -head gambrel, or flat roofs are specifically not allowed. ■ Roof material should be standard mission barrel (U-shaped) clay tiles. Each tile should be a uniform reddish color and non -reflective (unglazed) for a soft finish look. Plastic tiles are not allowed. ■ Secondary (non -street facing) roofs may utilize "S" tiles of clay or concrete. A random application or tiles is recommended over symmetrical design. Tiles at the ends of the eaves shall be double or triple layered with exposed mortar to emphasize thickness. ■ All flashing, vents, pipes, and sheet metal are recommended to be colored to match the adjoining roof or wall material. i GABLE Recommended Roof Pitch Old Town Specific Plan IV - 11 Guideline 6 - Exterior Building Wall Materials ■ Building exterior walls should be smooth finished stucco. Heavily textured stucco walls are not recommended. ■ Simulated adobe walls (painted slumpstone) should not be used for structural (load bearing) walls. Wood, metal, glass, or slumpstone are not recommended as predominant exterior wall materials. ■ At wall openings on primary (street facing) exterior walls, an appearance of thickness and mass is strongly recommended. Old Town Specific Plan IV - 12 Guideline 7 - Windows ■ Spanish Colonial/Mission style windows range in shape from small rectangular, multi-lited casement frames to large round headed windows. Deeply recessed windows (minimum of twelve inches) in thick walls is an important characteristic. The use of flower pot shelves beneath windows is also recommended. ■ Recommended trim colors include pastel blues, greens, reds, and beiges. Multi-lited windows recessed into wall surfaces are strongly recommended as display windows for commercial areas. ■ The use of louvered glass, glass block or metal frame windows is not recommended. Reflective mirror glass is prohibited. Fabric awnings are recommended in moderation, while metal awnings are not allowed. Old Town Specific Plan IF T Guideline 8 - Columns and Arcades ■ Stucco columns should be square in cross section and appear massive in thickness; 16 inches per side is recommended. The use of capitals and column bands is encouraged. A capital, approximately 2 to 3 inches thick by 3 to 6 inches high should be incorporated at the top of the columns. The column's height should be 4 to 5 times the width of the column (16 inch). A base band, height approximately one half the column width, should be provided. ■ Arcades are recommended to have semi -circular arches in regular series with columns as supports. Variations such as parabolic arches are not recommended. Flat arches will be reviewed on a case -by -case basis and should have heavy wood elements versus stucco. Arcades, patios, and colonnades are typically paved with tile, brick, or stone. Old Town Specific Plan IV -14 Guideline 9 - 360' Architecture ■ All sides of a building must receive appropriate stylistic architectural treatments. Guideline 10 - Color Palette ■ Spanish Colonial/Mission architecture is typified by simple white and off-white wall colors. While other light pastels might be proposed, their use is discouraged in favor of white, beige or white with an antique wash finish. ■ Trim colors appropriate to this style include primary shades of blue and red, terracotta, aqua, medium to dark shades of green, and brown. Other colors may also be appropriate and will be considered on a case -by -case basis. Old Town Specific Plan IV - 15 3. Monterey Style As American conquest of California proceeded, the new settlers brought elements of eastern United States and Classical Revival architecture, combining them with the early adobe and Mission examples. The result was what we now call Monterey Style. Many restored buildings of this period and style are found throughout the state. The most notable local example depicting elements of this style is the Welty Hotel. Guideline 1 - Graphic Depiction of Common Design Elements are Shown in the Following Graphic. Pitched Shingled Roof Railings geometric shape f Placement and Doors U9'8 iRY (S'4 t Multi -life windows with wood casement Design Elements of the Monterey Style and gable roofs Siding. Wood Balconies Stucco Old Town Specific Plan IV-16 Guideline 2 - Recommended Monterey Style Elements The qualities and design elements of Monterey Style buildings include: ■ gabled, low pitched, shingled roof; ■ ten foot high first floor ceiling; ■ symmetrical placement of windows and doors; ■ entrances with side and transom lites; ■ narrow wood porches and second floor balconies with wood railings; ■ modest to large roof overhangs; ■ use of wood window shutters; ■ rectangular facade; and ■ minimal wall articulation. Example of Typical Monterey Style Architecture Old Town Specific Plan IV - 17 Guideline 3 - Not Recommended Monterey Style Elements The elements to avoid include: ■ highly reflective surfaces; ■ unpainted concrete precision block walls; ■ reflective glass; ■ steep roofs or flat roofs; ■ irregular, modernistic window shapes and rhythm; and ■ metal sash windows. Guideline 4 - Solid to Void ■ Storefront construction is recommended to be between 40% and 60% transparent. Guideline 5 - Roof Pitch and Materials ■ Roof pitch for Monterey style architecture is typically low pitch. A 3:12 to 6:12 (vertical:horizontal distance) roof pitch is recommended for all main roof surfaces. ■ Roof types should be restricted to low pitched gable roofs. The use of a mansard, A -Frame, jerkin -head gambrel, or flat roofs is specifically not recommended. ■ Roof material should be comprised of wood shingles, composition roofing material, flat tile, slate or painted metal seam floors meeting City Codes. Old Town Specific Plan IV -18 Guideline 6 - Exterior Building Wall Materials Exterior building walls are encouraged to use the following materials in an appropriate arrangement. These include: ■ smooth stucco; ■ board and batten wood siding; ■ horizontal wood siding; ■ brick/stone; and ■ adobe block (no bearing walls). Guideline 7 - Windows ■ Wooden sash windows, double hung with 2 over 2 or 6 over 6 lites are recommended. ■ Wood window shutters are recommended. Typical Window Frame Details Old Town Specific Plan IV - 19 Guideline 8 - Porch/Canopy Columns ■ Porches are almost always constructed as covered balconies that are cantilevered out from the second floor. It is recommended to have the balcony extend from one end of the building to the other. ■ Balcony columns are typically 4 x 4's or 6 x 6's and constructed of wood. ■ A typical feature of Monterey architecture is the wood railings and balustrades on the second floor balcony. Typical porch layout Typical Balcony Details Old Town Specific Plan IV - 20 Guideline 9 - 360' Architecture ■ All visible sides of a building receive stylistic architectural treatment. Guideline 10 - Color Palette ■ The wide range of colors which might have been used for exterior decoration in the late 1800's are well represented in the Sherwin-Williams Heritage Colors. These are 40 historic 19th Century hues that capture the grace and elegance of another era. Buildings of this style may remain unpainted, however painting is encouraged. While use of these colors is recommended, other similar colors will be considered. The Temecula Planning Department maintains a full color brochure of the Sherwin-Williams Heritage Colors for public inspection. The Director may also identify other color palettes for Old Town that have the potential to achieve the same results. Old Town Specific Plan IV - 21 4. Other Period Styles (early 1900's) The three previously described architectural styles are the most desirable for Old Town. Extensive guidelines for other styles in existence during the early 1900's are not provided herein due to (1) their urban undesirability for Old Town; (2) likelihood of quality reproduction due to high cost of construction (The Bank/Classic Revival), or (3) limitation to mostly residential structures (California Bungalow and Victorian). Other historic styles will be considered for residential constructions If an applicant desires to introduce an architectural style into Old Town which is not provided for in these guidelines, the burden of proof shall lie with the applicant to provide evidence (historical or otherwise) that the particular style is appropriate for Old Town. Applications for development utilizing the following styles will be considered by the Director of Planning on a case -by -case basis. ■ Classic Revival - This revival style that was common between 1900 and 1920, was based primarily on Greek and to a lesser extent on Roman orders. This style produced symmetrically arranged buildings of monumental proportions. Colossal pedimented porticos were often flanked by a series of pilasters. Arches. and enriched moldings were not generally used. cimdc Revival Old Town Specific Plan IV - 22 ■ Queen Anne — Queen Anne was a prominent architectural style in the 1880s and 1890s. Of all the Victorian house styles, Queen Anne is the most elaborate and the most eccentric. Although easy to spot, the Queen Anne style is difficult to define. Common elements include: bay windows, balconies, stained glass, turrets, porches, brackets, an abundance of decorative details, with steeply pitched and irregular roofs, all combined in often unusual and unexpected ways. Old Town Specific Plan /V - 23 ■ Craftsman Bungalow - 6ffumto Du vwv California Bungalow buildings are well represented in O1dTown residential housing stock along Pujol Street. As a result, new residential construction in Old Town should utilize the California Bungalow as a model. The following graphic depicts the most notable bungalow architectural features. Root Vent Gable End Typical Brackets Porch lent Tails Root Vent.. Brackets ` Gable End Porch Old Town Specific Plan IV - 24 C. SITE PLANNING GUIDELINES Introduction. The area comprising the core of Old Town Temecula is typical of many small town/rural main streets. The buildings are predominantly side by side, forming a fairly continuous street wall, and are not set back from the right-of-way or sidewalk. The pedestrian quality of this relationship is enhanced by some arcades, mature trees, benches, and lack of emphasis on parking lots and parked cars. West Main Street is the oldest and most cohesive street in the area, however, many other streets in Old Town exist that do not contribute to the cohesiveness of the area. This cohesiveness is lost whenever parking lots are placed between the public right-of-way and the front of the building. These storefront parking lots have been allowed in the past instead of requiring new buildings to maintain the continuous street wall. It is the intent of these site planning guidelines to intensify the pedestrian activity which characterizes this area through requiring side, rear, or no on -site parking lots. Pedestrian passages to parking areas adjoining mid -block alleys are encouraged to facilitate the parking lot locations. Commercial Site Planning Guidelines Guideline 1— Lot Coverage ■ Commercial (and mixed use) buildings in core of Old Town are not regulated by site coverage maximums. If the building meets all the setback requirements, a development proposal my cover the entire remaining portion of the lot. Guideline 2 - Front Building Wall ■ The front porch or arcade of any building located in the Old Town Tourist Retail Core should be built to the front property line. ■ New buildings are encouraged to set back the corners of buildings at the intersections to create pedestrian plazas as well as improve visual sight lines for vehicles. Corner setbacks of at least 10 feet are desirable. ■ Any building located at a comer intersection should incorporate architectural features at the ground floor which emphasize the importance of pedestrian movement. These features may include building cut-offs, walk-through covered arcades, trellis structures, and other elements which focus visual interest on the corners. ■ Awnings, trellises, stairs and other accessory building structures approved by the Director may project into the public right-of-way. If required by the Director of Public Works, an encroachment permit shall be also be required. Old Town Specific Plan LV - Guideline 3 - Parallel Walls ■ Commercial buildings should be oriented on the lots in Old Town in a traditional town fashion. ■ The front building wall should be oriented parallel to the street. Slight modifications can be acceptable although entire frontages set on a 45 degree or more angle to the street are not consistent with traditional development patterns. ■ Pedestrian access for all buildings should be oriented to the major street upon which it is located. Secondary rear pedestrian entries are also recommended. Creek adjacent buildings are encouraged to orient pedestrian access on the creek side. Guideline 4 - Boardwalk System ■ The use of a covered boardwalk, porch, or arcade is strongly encouraged adjacent to the public pedestrian right-of-way (sidewalk). ■ Each project on Main Street and Old Town Front Street shall incorporate such a pedestrian system. The minimum width for a boardwalk is 8 feet. However, if seating areas are to be provided the minimum width should be 10 feet or greater. Similar pedestrian amenities should also be considered on side streets. ■ Buildings located on corner lots on Old Town Front Street shall also incorporate provisions for a pedestrian boardwalk on the side street frontages. �"WWFYWe Old Town Specific Plan [V - zo Guideline 5 — Detached Accessory Buildings ■ Detached accessory buildings shall be placed on permanent foundations and constructed of materials and painted with colors that are compatible with the main building. ■ The designated use of a commercial detached accessory building shall be appurtenant to the use of the main building and located on the site based on its design and function. ■ Detached accessory buildings shall be subject to the architectural guidelines and development standards of the Old Town Specific Plan and meet all applicable City of Temecula building and fire codes. Guideline 6 — Fences and Walls ■ All fencing and wall materials utilized within the commercial districts of the Old Town Specific Plan Districts shall be compatible with the architectural theme of the adjacent building. Stacked river or natural rock, battered base walls and the traditional look of wrought iron are appropriate as well as western style wood fencing where applicable. Such structures should not act as a visual barrier to a building, porch or front yard. ■ Use of indigenous and local historical materials such as granite for walls and fences is strongly encouraged. Incorporation of wall caps and pilasters at entry points can also be utilized where these treatments are indicated. ■ Fencing should encourage an open commercial and residential neighborhood atmosphere, while providing a definition between public and private spaces, through the use of walls, fences and hedges around front yard areas. ■ Architectural features such as garden walls, arbors and trellises are ideal to soften building mass and should be an integral part of the building. However, it is important to avoid a tacked on appearance to hide poor massing and architecture. ■ Chain link and bare precision block or other concrete masonry unit (CMU) walls are not permitted fencing materials. ■ Decorative wrought iron or rough-hewn wooden gates used to accentuate a fence, wall or building are permitted. ■ Detailing of column pilasters with tile or appropriate decoration representing Western, Spanish Colonial/Mission, Monterey or other period appropriate style elements are desirable. Old Town Specific Plan IV - 27 Guideline 7 — Trellises and Shade Structures ■ Trellises should be constructed of materials compatible with the architectural character of the adjacent building. Heavy rough-hewn timber covered with vines is encouraged. Natural wood or neutral tone colors from the Sherwin- Williams Preservation Palette should be utilized. ■ Covered walkways and shade structures associated with a building should adhere to the design elements of that structure. Materials such as brick, local stone, adobe block and stucco, in the case of Spanish Colonial/Mission, Monterey, Western or period -appropriate styles, combined with natural timber and rough-hewn beams are recommended. Ground level landscaping and wrap -around vines are encouraged to soften the look of these structures. Old Town Specific Plan lV - 28 Guideline 8 — Gutters and Downspouts ■ Gutters and downspouts on the exterior of buildings in the commercial districts should utilize designs consistent with the turn -of -the -century time period represented in Old Town. Materials used shall be color coordinated with the building they are attached to. Roof scuppers should not be placed in areas that are visible from the street or other public places. Guideline 9 — Awnings ■ Awnings can add color, relief and protection of pedestrian and patrons from the elements. They also can provide a setting for signage. The use of awnings to delineate building entries and help orient pedestrians to business locations is encouraged. ■ Awning care and maintenance should be conducted in accordance with the manufacturer's guidelines. The useful life of a typical awning does not exceed eight (8) to ten (10) years. (A property owner should not contemplate the installation of these structures unless they are willing to replace them every eight (8) to ten (10) years.) ■ All awnings within the Old Town Specific Plan area should be regularly maintained and kept free of fading, stains and tears. ■ Colors of awnings shall be monotone hues selected from the Sherwin-Williams Preservation Palette and coordinated with the architecture of the building they are attached to. ■ Awnings can be imprinted with simple signage in accordance with the provisions of the Sign Standards and Guidelines detailed in this Specific Plan. Lettering style and size should be in scale with the awning on which the sign is located as well as any adjacent awnings. ■ Awnings should be made of high quality cloth (plastic, aluminum and vinyl material are not permitted) and be at least seven (7) feet high at the lowest point so as not to impede pedestrian traffic. ■ Awnings should not be wrapped around buildings in a continuous band. Instead, these structures should be used to enhance the fagade by placing them on top of doors, windows and other openings. ■ Awnings should not be so massive as to dominate the fagade but should be in scale with the rest of the building. ■ If lighted, awnings should be illuminated with period appropriate fixtures such as goosenecks. Town Specific Plan IV - 29 Guideline 10 — Pocket Parks In an effort to provide landscape breaks along the commercial streets of Old Town, a series of pocket parks in the form of pedestrian spaces, arcades as well as mid —block paseos and courtyards need to be provided. These areas can allow transitions between commercial buildings in addition to providing a setting for public art, seating, drinking fountains, and shade structures. Buildings and/or landscape elements surrounding a pedestrian space on a minimum of two sides typically define an area as a pocket park. ■ Appropriate design elements such as gateways, trellises, architecturally designed lighting and seat walls should be used to create a series of seating areas for pedestrians throughout Old Town. ■ Columns and ornamental entry gates using native stone, iron or rough sawn timber are encouraged. ■ Permanent outdoor seating for pocket parks can be incorporated into decorative masonry structures or architecturally compatible benches of native stone or brick and shall complement adjacent buildings and landscaped areas. ■ Landscaping designs should follow the Old Town Specific Plan Guidelines. ■ Pocket parks should be publicly accessible during daylight hours and linked to adjacent streets and sidewalks. Typical Pocket Park Amenities Old Town Specific Plan IV - 30 Typical Street Corner Pocket Park Typical Courtyard Details Guideline 11— Vending Machines ■ Vending machines should be located along the face of a building or against a structure designed to accommodate them. ■ Each machine shall be framed on the sides and top in rough-hewn wood or other period appropriate materials compatible with the adjacent building it is placed against. ■ Vending machines should not occupy more than ten percent (10%) of the length, maximum twenty (20) feet, of any wall facing a street or access road. ■ They should not obstruct private pedestrian walkways. A minimum of forty- four (44) inches shall be kept clear of obstruction. Additional space may be needed if pedestrian traffic volume warrants. Old Town Specific Plan IV - 31 ■ Vending machines are not allowed on the public right of way. 3. Residential Site Planning Guidelines Design guidelines for the site planning of multiple family dwellings are intended to restore the presence of dwellings along streets and to expand upon standard subdivision regulations to maintain a village atmosphere (particularly along Pujol Street) and create an aesthetic environment with traditional neighborhoods. Detached residential structures are expected to maintain the period appropriate street view but are allowed additional latitude in terms of site design. While these guidelines are specifically intended to discourage the construction of residential streets continuously lined with repetitious facades, parking lots, and garage doors, they do not limit the accessibility of dwellings by cars or reduce parking requirements. The following guidelines and illustrations show several alternatives for residential site planning which can be used to implement a new rural village concept for Old Town. Guideline 1 - Vary Multi -Family Building Footprints ■ Buildings should be designed to minimize the appearance of a large, single, rectangular mass and to provide intimate or human scale. Avoid long, unbroken facades and simple box forms. To the extent possible, each of the dwelling units should be individually recognizable. This can be accomplished with the use of balconies, setbacks, and roofline changes. TIN RE RE NOT RECOMMENDED Old Town Specific Plan /V - 32 Guideline 2 — Detached Accessory Buildings ■ Detached accessory buildings located in residential districts shall incorporate architectural treatments from the main building including siding, surface materials, trim, paint colors and roof materials. Guideline 3 - Open Parking and Carports ■ Cluster open parking and carports along internal private drives and behind residential structures. Incorporate the following recommendations into parking plans: Open Parking: ■ Should be screened from street view to the extent possible. ■ Every loth space should be a landscaped island. ■ Provide special paving at entries. Carports: ■ Carport structure should be architecturally compatible with adjacent residential structures. ■ Plain prefabricated metal carports are not allowed. ■ Integrate carports with patio or building walls whenever possible. ■ Single carport structures should be limited in length to 10 parking spaces. Guideline 4 - Varied Front Yard Setbacks ■ For detached residential units, and un-stacked attached units, each group of three adjacent properties should contain at least one property whose front yard setback differs from those of its neighbors by at least 7 feet. Minimum setbacks should not be reduced to accommodate this variation. Provide Varied Front Yard Setbacks Old Town Specific Plan IV - 33 Guideline 5 - Garage Location ■ In older neighborhoods it is appropriate to locate the garage to the rear of the property. New infill projects should respect this traditional site planning concept whenever possible. Guideline 6 — Fences and Garden Walls ■ Residential areas should limit front yard fencing to materials compatible with the principal dwelling or multi -unit residential building and surrounding development. Simple wrought iron, cast iron, welded steel and substantial wood pickets painted a light color are options. Town Specific Plan IV - 34 D. PARKING LOT GUIDELINES The public view of open paved parking lots can detract from or obscure the historic theme of the Old Town area. This is especially important in the Retail Core area. The textures of paving can guide activities and movement patterns; it can channel traffic or prevent it from encroaching on specific areas; it can speed movement or slow it down. Smooth surface materials encourage walking while rough surfaces slow or inhibit walking. Paving materials therefore influence usability and comfort, as well as the perception of a historic time period. Guideline I - Parking Lot Orientation ■ Parking lot location and orientation should be hidden from public view from Old Town Front and Main Streets. ■ Parking lots and/or structures should be located, as much as possible, to the rear of buildings. ■ Vehicular entry points to parking lots should receive special paving accents where the drive crosses the public sidewalk. ■ Off-street parking facilities should be designed so that a car within a facility will not have to enter a street to move from one location to any other location within the same parking facility. Guideline 2 - Joint Parking Facilities Encouraged ■ Shared parking between adjacent businesses and/or developments is strongly encouraged where practical. ■ Common driveways that provide vehicular access to more than one site are strongly encouraged. ■ Where parking areas are connected, interior circulation should allow for a similar direction of travel and parking bays in all areas to reduce conflict at points of connection. Old Town Specific Plan IV - 35 Guideline 3 - Parking Lot Design ■ Parking areas should be designed to enhance the Old Town historic environment. ■ Parking areas must be landscaped in compliance with the requirements of the Development Code. ■ Parking areas should be separated from buildings by either a raised boardwalk walkway or landscaped strip, preferably both. Parking spaces which directly abut the building are strongly discouraged. ■ Parking lots should be designed so that pedestrians walk parallel to moving cars. Minimize the need for the pedestrian to cross parking aisles. ■ Avoid locating trash enclosures and other obstructions in parking areas or places where they block the line -of -sight for motorists. Guideline 4 - Site Access/Driveway ■ Entry driveways to parking lots in Old Town should be designed to enhance the Old Town historic environment. ■ Properties should avoid parking access points taken directly from Old Town Front or Main Streets whenever possible. ■ Whenever possible, locate site entries on alleys in order to minimize pedestrian/vehicular conflicts. When this is not possible design the front site entry with an appropriately patterned concrete or pavers to differentiate it from the sidewalks/boardwalk. ■ Parking access points, whether located on front or side streets should be located as far as possible from street intersections. The minimum distance recommended is 100 feet. ■ Common driveways that provide access to more than one site are strongly encouraged. Town Specific Plan IV - 36 E. LANDSCAPE GUIDELINES Landscaping in the Old Town Specific Plan Area shall achieve three specific ends: 1) to unify and establish an Old West theme; 2) to soften commercial development; and 3) to unify the area as a pleasant environment for residents and visitors. These three ends will be accomplished by a highly recognizable use of repeated planting treatments. Consistency and continuity within the street right-of-way and building setback areas is extremely important. New development in Old Town shall comply with the following landscape guidelines and the regulations of this Specific Plan. Guideline 1 - General Landscape Guidelines All development should follow these general landscape guidelines: ■ Emphasize use of varieties which require low maintenance and drought tolerant species in public and commercial areas, especially in large landscape areas. ■ Tree spacing along all streets and trails should be more informal with an uneven spacing. ■ Use boxed and potted plants in clay or wood containers, especially for enhancement of sidewalk shops. ■ Use color plantings at the base of a building, in planter boxes, and focal points. ■ Landscaping material is the preferred method used to obscure the view of any parking, storage areas, trash enclosures, and public utilities from a public street or pedestrian area. ■ Landscaping should not obstruct the sightlines of motorists or pedestrians, especially at pedestrian crosswalks. ■ Trees and shrubbery should not be located so that they interfere with the effectiveness of parking lot and street lighting. ■ Landscape screen plant materials should be large enough at planting to provide effective screening, and be capable of growing to the height and density desired within a reasonable period of time. ■ Provide complete automatic sprinkler or drip irrigation systems for all commercial projects in accordance with citywide water efficient irrigation requirements. Old Town Specific Plan IV - 37 Guideline 2 - General Landscape Material Guidelines All development should follow these general landscape material guidelines: ■ Use specimen trees (boxed trees) for immediate effect and accent. ■ Give consideration to rapidly growing trees. ■ Give preference to ground covers which require little maintenance. Authentic flower and vegetable gardens may be developed to add to the historic character. ■ Vines and climbing plants integrated upon building and perimeter garden and building walls are strongly encouraged. A few plants to consider for this purpose are bougainvillea, grape ivy, and wisteria vines. ■ The use of materials such as crushed rock, redwood bark chips, pebbles, and stone or masonry slabs should not be used in place of live plant materials in landscape areas. Old Town Specific Plan !V - 38 Guideline 3 - Minimum Plant Size and Spacing ■ A minimum of one 15 gallon size tree (25 feet in height or more at maturity) for every 800 square feet of landscaping. ■ A minimum of one shrub or vine for every 50 square feet of landscaping. Guideline 4 - Save Mature Oak Trees in Old Town ■ Save existing mature trees, where possible, especially Oak Trees (small trees may be moved and transplanted). Approval of a Certificate of Appropriateness must be obtained for removal of all trees having a trunk diameter of 10 inches or more measured 48 inches above existing grade. Guideline 5 - Preferred Old Town Trees The following lists the recommended alternative species for landscaping private property in Old Town. Other drought tolerant, low maintenance native species may be presented and approved by the City staff. The following trees are selected for their shade potential, color, height, and/or form: ■ Sycamore; ■ Liquidamber; ■ Evergreen Pear; ■ California Pepper; ■ Red Gum Eucalyptus; ■ Poplar; ■ Pinus; and ■ Oak. Old Town Specific Plan IV - 39 F. LIGHTING GUIDELINES The public sidewalks, places and alleys, exteriors, roofs, outer walls and fences of buildings and other structures and signs visible from any public street, place or position in the Old Town shall not be illuminated by any other illumination except as permitted herein; Guideline 1 - General Lighting Guidelines The following general lighting guidelines shall be followed in Old Town: ■ Building or roof outline tube lighting is not appropriate. ■ Use of luminescent wall surfaces is not appropriate. ■ A limited number of lights can be used to create shadow, relief or outline effects when such lighting is concealed or indirect. ■ Concealed light sources are recommended. ■ It is encouraged that interior building lighting be left on at night to enhance pedestrian activity on the street. ■ The lighting system should be architecturally compatible with the surrounding building and express the unique historic character of the area. ■ Mercury vapor, exposed fluorescent, or exposed high intensity lights are not permitted. When full color recognition is needed, high pressure sodium lights should be used in public spaces. ■ Neon is not permitted in the Tourist Retail Core and Tourist Serving Residential Land Use Planning Districts. Old Town Specific Plan /V - 4U G. PUBLIC ART GUIDELINES The placement of public art within the Old Town Specific Plan Area is encouraged on both private and public property. Public art gives a community an identity that can be representative of a City's culture and heritage in addition to promoting social gathering places and interaction. Wall murals, lighting displays, sculptures, mosaics, monuments and fountains are all considered significant examples of artistic expression. Proposals for public art are subject to review by the Old Town Local Review Board and must comply with the following guidelines. Guideline 1 - Location ■ Public art should be situated in highly visible places throughout the Old Town Temecula Specific Plan. Public art is encouraged in all gathering areas. Locations such as pocket parks or specifically designed settings to accommodate particular art pieces are ideal. Old Town Specific Plan IV - 41 Guideline 2 - Symbolic Content ■ Examples of public art in Old Town should relate to and represent the rich legacy of the Temecula Valley. Literal and abstract representations of local historical and old western elements are appropriate. Old Town Specific Plan [V - 42 Guideline 3 -Mosaics and Murals ■ The pictorial designs of these artistic works should compliment the color and architectural composition of the buildings on which they are painted as well as that of adjacent structures. Ideal facades for murals are exposed fire or windowless walls that are two or more floors in height. Guideline 4 - Sculptures and Monuments ■ Pieces selected should be representative of historical figures and events related to the Temecula Valley. Employment of iron, rough-hewn wood and native rock materials are desirable as apart of the presentation. -'is�f1 b'k Old Town Specific Plan IV - 43 Guideline 5 — Lighting Displays ■ Lighting used as an artistic display should employ the same standards as fountains and use tum-of-the-century genre fixtures. They can also be constructed with works of sculpture, monuments and water features. Guideline 6 — Fountains ■ Water features in the form of above or below -ground fountains should enhance the surrounding architecture and, as historically appropriate, utilize materials from the Western, Monterey, Spanish/Colonial/Mission and other period - appropriate styles represented in the Architectural Style Guidelines (Section IV-B) of this Specific Plan. They are also recommended for open courtyard and passage spaces to provide relief in hot weather Old Town Specific Plan /V - 44 H. OUTDOOR DINING/SIDEWALK FURNITURE GUIDELINES Outdoor patio furniture and umbrellas used with restaurants and other commercial uses within the Old Town Specific Plan are considered an integral part of the street scene. As a result, period -appropriate street side furnishings as outlined in the following guidelines are required. Guideline I - Furniture ■ All outdoor furniture (tables, chairs, serving stands and bars) shall be of high - quality, durable, and suitable for outdoor use. Wood, metal and natural looking materials are encouraged. ■ Outdoor furniture should be in scale and consistent with both the architectural style and colors of the adjacent building facade. Guideline 2 — Umbrellas ■ Umbrellas shall be made of high quality canvas material (not plastic, vinyl or aluminum) and be tall enough to allow pedestrian access. ■ Umbrella colors should be monotones selected from the Sherwin-Williams Preservation Palette and be coordinated with the paint and architecture of adjacent buildings. Multi -colored designs are to be avoided. ■ No signs or other types of advertising shall be printed on umbrellas, except for the name of the establishment on the umbrella valance. ■ Umbrellas should be traditional market style designs that integrate well with adjacent building architecture. ■ Wood and metal multi -post canopy structures used with fabric umbrellas are permitted where historically appropriate. Review by the Old Town Local Review Board is required for these installations. ■ Aluminum easy -ups are prohibited except where used in conjunction with an approved special event. Old Town Specific Plan !V - 45 I. PAVING MATERIAL GUIDELINES Paving materials that reflect the historic materials used in the nineteenth century are strongly encouraged in the Specific Plan area wherever possible. Guideline 1— Suitable Material Guidelines ■ Beige concrete with mexican beach pebble aggregate (1/2" - 1") surface; ■ Stamped concrete boards, deep gray; or ■ Red Clay tile (12" x 12") in areas of low pedestrian and automobile traffic; ■ Textured, stamped concrete that is Terra Cotta with off white grout (to resemble tile); ■ Stamped concrete cobbles deep grey in color; ■ Brick or brick pavers in reds or browns; and Wooden planks (sidewalks and footpaths). Guideline 2 - Limit Paving Choice in Each Project ■ Limit the number of paving materials and patterns used in one place ■ Driveway entries should be different pavement than sidewalk or street pavement. ■ Vast expanses of concrete or asphalt, as in parking lots, are discouraged and should be modified with differing colors and paving patterns. Old Town Specific Plan lV - 46 J. SIGN DESIGN GUIDELINES Signs in Old Town should advertise a place of business or provide directions and information. Signs should be architecturally attractive and signs such as painted wall signs should contribute to the retention or restoration of the historic character of the area. Signs should not compete with each other or dominate the setting via inconsistent height, size, shape, number, color, lighting, or movement. An effective sign and graphics system functions not as a separate entity but as an integral part of the built environment. When carefully planned, signs communicate essential information, while ordering and enhancing the architectural character of Old Town. This Specific Plan has regulations to help control the size, location, and number of storefront signs, but code restrictions above may not be enough. Design criteria are needed to encourage and coordinate well -designed signs. The following sign guidelines are also intended to assure the local merchant that all other Old Town commercial establishments are similarly regulated. Guideline 1 - General Design Guidelines ■ Provide a clear message on the sign. ■ Use a brief message. The fewer the words, the more effective the sign. A sign with a brief, succinct message is simpler and faster to read, looks cleaner and is more attractive. ■ Avoid hard to read, overly intricate typefaces. These typefaces are difficult to read and reduce the sign's ability to communicate. ■ Avoid faddish and bizarre typefaces. Utilize western style typefaces that are easy to read. Avoid corny alphabets Discourage typefaces which are hard to read ■ Avoid signs with strange shapes. Signs that are unnecessarily narrow, oddly shaped, or unrelated to the products or services being provided on site can restrict the legibility of the message. If an unusual shape is not symbolic, it is probably confusing. Old Town Specific Plan 1 V - 47 ■ Use widely recognized logo's rather than print/text whenever possible. ■ Make signs smaller if they are oriented to pedestrians. The pedestrian -oriented sign is usually read from a distance of fifteen to twenty feet; the vehicle - oriented sign is viewed from a much greater distance. The closer a sign's viewing distance, the smaller that sign need be. ■ Signs with phone numbers are not permitted. This can clutter and obscure the main message. Guideline 2 - Sign Materials ■ Signs made of carved or sandblasted wood. ■ Vertical or horizontal wooden signs can be effectively utilized in a variety of different ways on windows, building surfaces or as accent bands. A wooden wall sign can be painted or stained and sealed for a more natural look, depending upon the appearance of the surrounding structures. Lettering can consist of metal or raised wood and when placed within a sign band, will serve to unify the building facade. Carved or sandblasted wood signs are also appropriate. Guideline 3 - Sign Color ■ Sign colors and materials should be elements that were available in the 1890'S. ■ Colors should be selected to contribute to legibility and design integrity. Even the most carefully thought out sign may be unattractive and a poor communicator because of poor color selection. ■ Use significant contrast between the background and letter or symbol colors. If there is little contrast between the brightness or hue of the message of a sign and its background, it will be difficult to read. ■ Limit major colors to four on a single sign, except for logos. Too many colors overwhelm the basic function of communication. The colors compete with content for the viewer's attention. Limited use of the accent colors can increase legibility, while large areas of competing colors tend to confuse and disturb. ■ Where pictorial artwork is used in a design, multiple colors may be used for that portion of the sign. ■ Metal sign panels can utilize raised lettering on metal bands. Printing and lettering can also be applied directly to a flat metal sign band with letters consisting of wood, acrylic or metal. ■ Colors used in registered corporate logos and trademarks should be matched to the closest tones of the Sherwin-Williams preservation Palette when possible. Old Town Specific Plan IV - Z Guideline 4 - Sign Letter Size Guideline ■ Sign lettering for storefront wall mounted signs should be large enough to read, however, they should not overpower the scale of the storefront. Sign lettering should meet the following size recommendations: For storefronts 30' wide or less, a maximum letter height of 8" is recommended; For storefronts 30' to 60' wide, a maximum letter height of 12" is recommended; For storefronts greater than 60' wide, a maximum letter height of 16" is recommended. Guideline 5 - Sien Architectural Compatibility ■ Sign design should relate to and enhance building architecture. ■ Sign size should be proportionate. The size and shape of a sign should be proportionate with the scale of the structure. ■ Place signs consistent with the proportions of scale of building elements within the facade. Within a building facade, the sign may be placed in different areas. A particular sign may fit well on a plain wall area, but would overpower the finer scale and proportion of the lower storefront. A sign appropriate near the building entry may look tiny and out of place above the ground level. ■ Place wall signs to establish facade rhythm, scale and proportion where facade rhythm doesn't exist. In many buildings that have a monolithic or plain facade, signs can establish or continue appropriate design rhythm, scale, and proportion. ■ As an alternative to an attached sign, lettering may be painted directly on the building facade. This method resembles a wooden or metal band but does not require the introduction of another material. RECOMMENDED NOT RECOMMENDED Sign is in scale and character with building. Sign is our of scale and character with building. Old Town Specific Plan IV - 4y Guideline 6 - Wall Mounted Sins ■ Sign colors should be compatible with the building's color and the building. ■ The identification of each building or store's address in six inch high numbers over the main entry doorway or within ten feet of the main entry is recommended. ■ Additional smaller building signs containing the name of the business should be located at rear entrances when they are routinely used by customers. Old Town Specific Plan IV - 50 K. STREETSCAPE GUIDELINES This Section contains guidance on the anticipated streetscape improvements as well as the requirements for street furniture and other streetscape elements. The dominant elements of the streetscape for Old Town will be street/sidewalk hardscape, building signage and street furniture. The purpose of streetscape improvements for Old Town is to promote a high quality historic image that serves to enhance the visual experience of the area for tourists and residents alike. The preservation of the pedestrian scale and the relationship of buildings to streets are important criteria in the Old Town area. The initial streetscape improvements along Old Town Front Street and a portion of Main Street were completed in November 1998. An environment oriented to the pedestrian should be concerned with meeting not only functional needs, but also sensory needs throughout the provision of a network of simple, well-defined and well-proportioned outdoor spaces. In an effort to ensure a 1900-era experience, it is important not to over -plan the streetscape as turn of the century streetscapes were often simple, uncluttered, and less formal than contemporary streetscape programs. In addition, formalized street trees were not a major component of turn of the century streetscapes. 1. Sidewalk Concept The preferred Sidewalk Concept for Old Town consists of a two -tiered system. The first tier of the system is the public sidewalk. The second tier of the system is privately owned, covered porches, and arcades and is commonly described as the "browsing zone." a. The first tier, public sidewalk, which is located directly adjacent to the curb, should be a minimum of 8 feet wide. However, a wider width preferred, especially in areas where no second tier walkway is available. Wider widths are desirable. ■ The sidewalks shall be constructed of wood planks. The plank widths should vary in a random arrangement of 6", 8", and 10". The plank sidewalks shall be flush with the top of the curbs. Concrete handicapped ramps will often be necessary at corners. ■ Rolled curbs are recommended to provide an economical and softer alternative edge treatment. The curb and gutter should match the street paving materials. Old Town Specific Plan IV - 51 b. The second tier of the system is privately owned, covered porches, and arcades. This second tier is referred to as the "browsing zone." ■ The browsing zone shall be directly adjacent to and parallel to the public sidewalk and is recommended to be a minimum of 8 feet wide. Widths up to 12 feet may be appropriate if seating areas are provided. ■ The height (elevation) of the porch/boardwalk shall not be greater than 12 inches above the adjacent sidewalk, unless greater heights are required because of its flood plane location. ■ The porch should be open and accessible at both ends to allow continuous pedestrian browsing from one storefront to the next storefront. ■ While porch railings are discouraged between the public boardwalk and the storefront, they may be allowed, provided an entry/exit to the public boardwalk is included about every 25 feet. 2. Street Tree Approach In keeping with the Specific Plan goal of not formalizing the Old Town streetscape into a regimented design concept, street trees should be located to achieve a sense of "planned randomness." This approach is accomplished through actual in -the -field analysis since tree locations are not predetermined by a static formula (e.g. all trees 30 feet on center). No more than two of the same type tree should be planted next to one another. Distance between trees may vary between 20 to 40 feet, or more if necessary to avoid driveways and utilities. 3. Public Signage Public signage is an essential and integrated design element of the total Old Town environment. A carefully executed public sign program for Old Town can communicate vital information, reduce traffic congestion, boost retail sales as well as enhancing the architectural environment. For all public signage in Old Town, the Old Town district logo should be incorporated into the sign. The concept for public signage in Old Town is a three -tiered approach. The three tiers are Gateway Entry Signs, Public Parking Directional Signs, and Street Name Signs. Old Town Specific Plan IV - 52 a. Gateway Entry The original plan envisioned a gateway sign at each end of Old Town Front Street over the traffic lanes. To announce the visitors arrival in the core of Old Town. The materials should recall the architectural image of Old Town and may include sandblasted wood, and wrought iron. This vital public signage component was completed in February 1999. Old Town Specific Plan IV - SJ b. Parking Directional Signs Parking directional signs will be located primarily along Old Town Front Street at intersections with side streets where public parking access is available. Other side street locations may also be appropriate at or near the parking lot. The signs will be free standing and made of architecturally compatible materials. Illumination should be provided. An example of parking directional sign is shown below. C. Street Name Signs These signs will be simple wood construction similar to the existing wood signs currently located in Old Town. Old Town's logo may be incorporated into the street name placard or pole. These signs will replace older street name signage in the public right-of-way. Generic directional signs may be added to the existing street name poles provided that specific business names are not mentioned. Old Town Specific Plan IV - 54 4. Street Furniture Street furnishing can enliven and provide variety to outdoor spaces used by the public. Street furnishings serve an aesthetic as well as utilitarian function. Proper design and placement of such amenities will reinforce the Old West design theme and create a lively and festive atmosphere throughout the year in Old Town. The purpose of this discussion is to provide guidance on the materials and appearance for all street furniture within the Specific Plan. a. Wood Benches Wooden benches with vertical back slats and horizontal seat slats are preferred. Pressure treated Pine may be selected for an economical approach while Purple Heart wood is the perfect material for heavy use areas. Old Town Specific Plan IV - 55 b. Street Lighting Street lighting in small rural towns in the nineteenth century was often non existent for communities like Temecula. In order to enhance pedestrian safety at night however, pedestrian level lighting is recommended. The previously existing lighting in Old Town is the single acorn on a concrete pole typical of the 1930's - 1940's. This style is incorrect for this turn -of -the -century period being sought for Old Town. The preferred street lighting in Old Town is a simple lantern style of light fixture. The typical standard applicable in most situations will be a double posted pole. This style is required in the Tourist Retail Core and Tourist Serving Residential zoning districts. b. Trash Receptacles Trash receptacles should resemble either a whiskey barrel or crate or box in order to maintain the desired western style. Old Town Specific Plan IV - 56 C. Newspaper Racks All newspaper racks located with the boundaries of the Old Town Specific Plan, except for the Highway Tourist Planning Area, that are installed after the effective date of the Specific Plan shall either be constructed of rough-hewn wood stained dark or painted with a neutral color selected from the Sherwin- Williams Preservation Palette, or surrounded by a similarly constructed wooden facade. In order to maintain an uncluttered streetscape, newspaper racks should be placed adjacent to buildings and painted or stained with compatible colors. The design of the newspaper racks and facades must be harmonious with the Turn -of -the -Century look. Newspaper racks shall not located in locations that block emergency access, crosswalk entrances, handicapped access facilities, and store entrances. Lengthy concentrations of newspaper racks is discouraged to minimize obstacles to pedestrian movement. The number of individual newspaper dispenser in each rack should not exceed four. Town Specific Plan !V - d. Mailboxes Mailboxes in Old Town should retain the rural delivery flavor of the mailbox rack system shown below for a multi tenant situation. Material should be dark stained wood. e. Bus Shelters While there will not be very many bus shelters in Old Town, the design should be compatible with the Turn of the Century look. Bus shelters should be custom designed and made primarily of wood. Color should be dark natural stain, white, or dark green. Metal and plexiglass contemporary designs are not allowed. 04D T1'OWN BBS STOP. Old Town Specific Plan IV - 58 f. Other "Period" Furnishings Many other streetscape furniture items make up the total streetscene. These items, in order to match the "period" style desirable for Old Town, will need to be custom designed and built. These items may include: ■ Phone booths; ■ Drinking fountains; ■ Fire hydrants; ■ Utility poles; or ■ Antique traffic signals. Old Town Specific Plan IV - 59 V. OLD TOWN HISTORIC PRESERVATION DISTRICT CONTENTS A. Purpose B. Establishment of the District C. Building Permits and Prohibitions D. Old Town Local Review Board (OTLRB) E. Old Town Local Historic Register F. Certificate of Historic Appropriateness G. Care and Maintenance H. Additional Violation Provisions for Historic Structures A. PURPOSE Page V-1 Page V-1 Page V-1 Page V-2 Page V-3 Page V-6 Page V-8 Page V-9 Protecting the cultural heritage and historical architectural resources found in Old Town is part of the overall goal for the revitalization of Old Town and the protection of the community's heritage. The Old Town Specific Plan also gives owners of eligible historic properties relief from the contemporary municipal codes, ordinances, taxes, and laws levied on newer contemporary structures. B. ESTABLISHMENT OF THE DISTRICT The boundary of the Old Town Historic Preservation District shall be coterminous with the boundary of the Old Town Specific Plan. C. BUILDING PERMITS AND PROHIBITIONS 1. Within the boundaries of the Old Town Historic Preservation District no person shall demolish, remove, relocate, alter, cause to be altered, or modify any designated historic building or structure without the issuance of a Certificate of Historic Appropriateness. 2. Within the boundaries of the Old Town Historic Preservation District, no person shall alter, or cause to be altered, any designated historic building or structure, except in strict compliance with the plans approved in conjunction with the issuance of a Certificate of Historic Appropriateness. 3. Within the boundaries of the O1dTown Historic Preservation District, no person shall relocate, or cause to be relocated, alter, or cause to be altered, construct, or cause to be constructed, any building or structure, except in strict compliance with the plans approved in conjunction with the issuance of a Certificate of Historic Appropriateness. Old Town Specific Plan V - I 4. Within the boundaries of the Old Town Historic Preservation District, no building permit shall be issued unless a Certificate of Historic Appropriateness is first issued in compliance with the provisions of this Chapter. Interior building changes to non -historic building and structures that do not effect the buildings exterior are not required to obtain a Certificate of Historic Appropriateness. 6. Nothing in this section shall be construed so as to exempt any person from complying with any other provision of law. D. OLD TOWN LOCAL REVIEW BOARD (OTLRB) 1. The Old Town Historic Preservation District shall have an advisory review board known as the Old Town Local Review Board to provide input into all major projects within the Old Town Specific Plan. The Director of Planning may also provide the Board with information on major projects adjacent to Old Town that may have the potential to effect the Old Town area. 2. The Old Town Local Review Board shall be composed of five members and one alternate (who shall serve in the absence of any member). Board members shall be appointed by the City Council for terms of 3 years. The member terms shall be staggered so that all the members of the Old Town Local Review Board are not appointed at the same time. All members shall exhibit an interest in and knowledge of the history and architecture of the Old Town Historic Preservation District. At least one member shall be knowledgeable in architectural and construction techniques. Members shall serve without pay. 3. The Old Town Local Review Board shall hold regular public meetings and establish such rules as may be appropriate or necessary for the orderly conduct of its business. Three members shall constitute a quorum. At its first meeting of the year, the Board members shall elect a Chairman and Vice Chairman (who will officiate the meetings when the Chairman is absent), who shall serve for terms of one year. 4. The Old Town Local Review Board shall have the following powers and duties in addition to those otherwise provided in this ordinance: a. Provide for pre -application conferences with individuals interested in constructing or altering property within the Old Town Historic Preservation District. The purpose of these conferences shall be to familiarize the applicant with the historic significance and related architectural themes of the district. Utilize the adopted Old Town Specific Plan Design Guidelines in the review of applications as part of process to make determinations of consistency and appropriateness with the specific plan. Use the Design Guidelines as a basis for approving or denying applications for a Certificate of Appropriateness. Old Town Specific Plan V - 2 C. Explore means for the protection, retention, and use of any significant structures, natural features, sites, and areas in the district including but not limited to appropriate legislation and financing by independent funding organizations, or other private, local, state, or federal assistance. d. Serve as an advisory resource to all agencies of the City in matters pertaining to the Historic District, and to encourage efforts by, and cooperation with individuals, private organizations, and other governmental agencies concerned with preservation of the district's architectural, environmental, and cultural heritage. e. Render advice and guidance, upon request of the property owner or occupant regarding construction, restoration, alteration, decoration, landscaping, or maintenance of any structure, natural feature, site or area within the district. f. Encourage public understanding and appreciation of the unique architectural, environmental, and cultural heritage of the district through educational and interpretative programs. E. OLD TOWN TEMECULA LOCAL HISTORIC REGISTER 1. The City Council has identified the following historic buildings and structures in the Old Town area. These building and structures are officially designated on the Local Historic Register for the City of Temecula. All buildings on this list are eligible to receive any and all benefits authorized by the State of California for designated historic structures. The use of the Historic Building Code is specifically authorized. 2. The list of Designated Historic Buildings and Structures is as follows. The locations of the designated historic buildings and structures are also shown on Exhibit V-1. A. Saint Catherine's Church, 1920 B. Welty Building, 1897 C. Machado Store, 1910 D. Clogstone Restaurant, 1932 E. First National Bank, 1914 F. Palomar Hotel, 1915 G. Alec Escallier House, 1927-28 H. Burnham Store, 1902 I. Friedeman Meat Market, 1901 J. Welty Hotel, 1891 K. J.D. Welty, 1936 L. Arviso House, 1920 M. Unnamed residence, 1928 N. Bill Friedeman House, 1922 28314 Mercedes Street 28659 Old Town Front Street 28656 Old Town Front Street 28676 Old Town Front Street 28645 Old Town Front Street 28522 Old Town Front Street 41852 Main Street 42051 Main Street 42050 Main Street 42100 Main Street 42081 3rd Street 41915 4th Street 42251 6th Street 42291 6th Street Old Town Specific Plan V-3 O. Nienke House, 1936 28575 Pujol Street P. McConville House, early 1890's 28585 Pujol Street Q. Albert Nienke House, early 1920's 28649 Pujol Street R. G.A. Burnham House, early 1880's 28653 Pujol Street S. Al Otto House, 1882 28717 Pujol Street Saint Catherine's Church building (Historic Building "A") was relocated to Sam Hicks Monument Park in 1992. The Bill Freideman House (Historic Building "O") was relocated on the same site in 2003 as part of housing project sponsored by the City Redevelopment Agency. 3. Since the initial adoption of the Old Town Specific Plan, a number of previously designated historic structure were determined to be substantially dilapidated and/or unsafe and it was determined that these historic structures could not be rehabilitated. The following is a list of designated historic structures that were demolished since the Plan's initial adoption 1994. This listing has been provided for historic documentation purposes only. a. Harry Walters House, 1930's, 28535 Pujol Street Removed in 1996 b. Unnamed residence, 1920, 28735 Pujol Street Removed in 1999 C. Knott's Garage, 1910, 28545 Old Town Front Street Removed in 2000 d. Angel Ramirez House, 1926, 28731 Pujol Street Removed in 2002 e. Fred Ramirez House, 1920, 28725 Pujol Street Removed in 2002 Old Town Specific Plan V - 4 Old Town Temecula Specific Plan Exhibit V-1 Historic Structures Map A Saint Cathednds Church, 1920 B. Welty Building, 1897 C. Machado Store, 1910 D. Clogstons Restaurant 1932 E. First National Bank 1914 F. Palomar Hotel, 1915 G. Alec Escallier House, 1827-28 H. Burnham Stare, 1902 1. Friedeman Meet Market 1901 J. Welly Hotel, 1891 K. J.D. Welty, 1936 L. ArAso House, 1920 M. Unnamed residence, 1928 N. B01 Friedaman House, 1922 0. Nlanke House, 1936 P. McConville House, early 1890's 0. Albert Menke House. eery 1920's R. GA Burnham House, earty 1880's S. AI Otto Howe, 1882 u 28314 Mercedes Street 28659 Old Tovn Front Street 28656 Old Town Front Street 28676 Old Town Front Street 25645 Old Town Front Street 28522 Old Tovrn Front Street 41852 Main Street 42051 Main Street 42050 Main Street 42100 Main Street 42081 3rd Street 41915 4th Street 422516M Street 42291 6th Street 28575 Pujol Street 28585 Pujcl Street 28649 Pujol Street 28653 Fuld Street 28717 Pujd Street R INTNTMEIN 400 0 400 800 Feet rlgblkeeaercvbwprojedswdwvm 8 hwwIc_atruchaea.epr F. CERTIFICATE OF HISTORIC APPROPRIATENESS 1. No existing building or structure may be altered or demolished, and no new building or structure constructed without the prior approval of a Certificate of Historic Appropriateness pursuant to the provisions of this Section. 2. Certificates of Historic Appropriateness may be issued either by the Director of Planning or the Planning Commission or City Council as part of the approval process for any development within the Old Town Specific Plan. The determination of who approves the Certificate of Historical Appropriateness shall be based upon the approval authority established by the Development Code for the accompanying application. No development application for Level Two projects in Old Town, as described below, may be approved without a recommendation from the Old Town Local Review Board. 3. For the purposes of implementing the provisions of the Old Town Specific Plan there are two levels of Old Town development project. The first category is the ministerial or minor projects, referred to as Level One projects. The second category is for non - ministerial and major projects, also called Level Two projects. a. Level One Projects do not require the review and recommendation of the Old Town Local Review Board. Level One projects may be approved by administrative (staff only) review following the Director of Planning's determination to grant a Certificate of Historical Appropriateness. Typical examples include the following: • Interior changes or alterations to historic structures; • Re -landscaping around existing structure; • Re -roofing of an existing building; • Additions and remodels to non -historic single family residences; • Exterior architectural modifications to an existing commercial, office, or residential building effecting less than 25% of the front or street side exterior facade; • The demolition to non -historic buildings and structures; • New signs up to 12 square feet in size; and • Changes in the copy of previously approved signs. The Director of Planning, at their sole discretion, may forward Level One projects to the Old Town Local Review Board when unique circumstances, or the sensitivity of adjacent historic structures or land uses indicate the potential for an adverse aesthetic impact. Old Town Specific Plan V - 6 b. Level Two Projects have the potential for significant aesthetic impacts. Level Two Projects shall always require review by the Old Town Local Review Board prior to action by the approving authority. Typical examples of Level Two projects include, but are not limited to, the following: • Multi -family residential projects; • New commercial and office projects; • Exterior architectural modifications to an existing commercial, office, or residential building when 25% or more of the front or street side exterior facade is affected; • The alteration to a designated historic structure; • The demolition of, or substantial alteration to, a designated historic structure (requires Planning Commission approval); • New signs over 12 square feet; • Mini -monument signs located on architectural features that exceed the standard height requirement of four feet; and, • The removal of a specimen oak tree with a 10 inches or greater trunk diameter. 4. All applications shall be filed on the forms and in a manner determined by the Director of Planning. Applications shall not be accepted unless they are accompanied by the appropriate filing fee and such information and drawings as may be required by the Director of Planning. All applications for Certificates of Historic Appropriateness shall be signed by either the owner of the property or a person authorized by the owner. All drawings shall be signed by the architect responsible for the design and must be in sufficient detail to show the proposed design for the site. This includes the architectural design and elevations (including signs), proposed materials, textures and colors (including material samples), and the site layout (including all improvements affecting appearances, such as walls, walks, terraces, plantings, accessory buildings, signs, lights, and other similar elements). 5. Following the receipt of a complete application, the Director of Planning shall schedule a meeting of the Old Town Local Review Board within 60 days and provide the Board with a staff report, including a copy of the site plan and elevations. The Board shall review the application material and make a recommendation to approve or deny, with or without conditions, any requests for a Certificate of Historic Appropriateness to the approval authority designated by the Development Code. Old Town Specific Plan V - 7 6. In considering applications for Certificates of Historic Appropriateness, the Old Town Local Review Board shall make the following findings: a. That the proposed structure is in conformance with the general plan for Temecula and with all applicable requirements of state law and other ordinances of the city and is designed for the protection of the public health, safety, and general welfare. b. That the proposed structure is in conformance with the requirements of the Old Town Specific Plan, including the goals, objectives and policies, and architectural guidelines and standards. C. In the event of the proposed demolition of a designated historic building or structure, the Board shall also be required to find that applicant has submitted substantial evidence that the structure is imminently dangerous or unsafe and that the structure can not be effectively repaired or retrofitted. 7. The expiration date for a Certificate of Historic Appropriateness shall be the same as expiration date for the accompanying planning application, as may be extended pursuant to the provisions of the Development Code. If the Development Code does not specify an expiration date, the project which the Certificates of Historic Appropriateness was approved shall commence construction within three years of the date of approval or the Certificate of Historic Appropriateness shall become null and void. No extensions of time will be allowed for these projects. G. MAINTENANCE AND CARE 1. The owner, occupant, or other person in actual charge of an building or structure on Old Town Temecula Local Historic Register shall keep in good repair all of the exterior portions of such improvement, building, or structure, all of the interior portions thereof when subject to control as specified in the designation statement, and all interior portions thereof whose maintenance is necessary to prevent deterioration and decay of any exterior architectural feature. 2. Nothing in the requirements of section shall be construed to prevent the ordinary maintenance or repair of any exterior architectural feature in or on any designated Old Town Temecula Local Historic Register building of structure that does not involve a change in design, material, or external appearance thereof. Old Town Specific Plan V - 6 H. ADDITIONAL VIOLATION PROVISIONS FOR HISTORIC STRUCTURES In addition to the general violation provisions in Section III.11.7 of the Specific Plan, any person who demolishes, alters or removes a building or structure on the Old Town Temecula Local Historic Register, that person and the owner shall be required to restore the building, site, or structure to its original condition and setting prior to the violation within ninety days. Any action to enforce this provision may be brought by the city or any other interested party. This civil remedy shall be in addition to, any criminal prosecution and penalty and any other remedy provided by law 2. If any person demolishes or removes an building or structure on the Old Town Local Historic Register in violation of this section, no building or construction related (including grading) permits or permits to use the property as a parking area or other commercial venture shall be issued for a period of up to seven years, at the City Council's discretion, based on the significance of the resource from the date of demolition, except to replicate the lost resource. The failure to adequately maintain a designated historic building or structure can also be considered to constitute the unauthorized demolition of a building or structure on the Old Town Temecula Local Historic Register. For the purpose of this section, the demolition shall be presumed to have occurred on the date the city has actual knowledge of the demolition. The owner shall have the burden of providing an earlier date, if entitlement to an earlier date is claimed. The owner shall have the affirmative obligations to plant grass, to provide a temporary irrigation system to maintain such landscaping and to prevent the accumulation of debris and waste on the property during the interim period. Old Town Specific Plan V - 9 ATTACHMENT NO.2 PROPOSED COUNCIL ORDINANCE R:\OTSP\Plan Amendments\PA03-0158\Staff Report CC1.doc 9 ORDINANCE 04- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING THE ZONING AND HISTORIC PRESERVATION STANDARDS FOR THE OLD TOWN SPECIFIC PLAN (PLANNING APPLICATION NO. 03-0158) WHEREAS, on November 9, 1993, the City Council of the City of Temecula adopted the General Plan; and WHEREAS, on February 8, 1994, the City Council of the City of Temecula approved the Old Town Specific Plan to guide the revitalization of Old Town Temecula; and WHEREAS, the Old Town Specific Plan created the Old Town Local Review Board to assist in the implementation of the Plan and to periodically suggest ways to improve the Specific Plan; and WHEREAS, the Old Town Local Review Board identified a number of areas where supplemental design guidelines could be necessary and worked with City Staff to develop detailed amendments to the Specific Plan; and WHEREAS, the Planning Commission considered these proposed amendments on June 16, 2004, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested p ersons h ad a n o pportunity to, a n d id testify a ither i n s upport o r o pposition to t his matter; WHEREAS, the City Council considered these proposed amendments on August 10, 2004, a t a d my n oticed p ublic h earing a s p rescribed by law, a t which time the City staff and interested persons had an opportunity to, and id testify either in support or opposition to this matter; NOW, THEREFORE, BE IT RESOLVED that the City Council: Section 1. Approval of the Zoning Standards. The City Council for the City of Temecula hereby adopts the Zoning Standards for the Old Town Specific Plan that are located in Section III of the Old Town Specific Plan and contained in Exhibit A. Section 2. Approval of the Historic Preservation Requirements. The City Council for the City of Temecula hereby adopts the Historic Preservation Requirements for the Old Town Specific Plan that are located in Section V of the Old Town Specific Plan and contained in Exhibit B. Section 3. Environmental Determination. A detailed Initial Environmental Study (IES) checklist was prepared for the update of the Old Town Specific Plan. The analysis identified no significant impacts on the environment. The IES and Notice of Intent to Adopt a Negative Declaration was circulated for public review between May 24, 2004 and June 17, 2004. The City Council has previously adopted a Negative Declaration for this project. Section 4. Severability. The City Council hereby declares that the provisions of this Ordinance are severable and if for any reason a court of competent jurisdiction shall hold any sentence, paragraph, or section of this Ordinance to be invalid, such decision shall not affect the validity of the remaining parts of this Ordinance. R:\OTSP\Plan Amendments\PA03-0158\Staff Report =.doc 10 Section 5. Notice of Adoption. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be posted as required by law. Section 6. This Ordinance shall be in full force and effect thirty (30) days after its passage; and within fifteen (15) days after its passage, together with the names of the City Councilmembers voting thereon, it shall be published in a newspaper published and circulated in said City. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be posted as required by law.. Section 7. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula this _ day of 2004. Michael S. Naggar, ATTEST: Susan W. Jones, CMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA) I, Susan W. Jones, CMC, City Clerk of the City of Temecula, California, do hereby certify that the foregoing Ordinance No. 04-_ was duly introduced and placed upon its first reading at a regular meeting of the City Council on the _ day of , 2004, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council of the City of Temecula on the _ day of , 2004 by the following roll call vote: ►WIN&I4LTA I ]4&1 NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk R:\OTSP\Plan Amendments\PA03-0158\Staff Report =.doc 11 III. LAND USE AND DEVELOPMENT STANDARDS CONTENTS: A. Introduction B. Establishment of Land Use Districts and Map C. Land Use Regulations D. Site Development Standards E. Relationship of the Specific Plan to Other Codes F. Supplemental and Special Use Standards G. Sign Regulations H. General Provisions and Regulations A. INTRODUCTION Page III -I Page III-1 Page III-4 Page III-10 Page 111-13 Page III-14 Page III-24 Page III-29 The Old Town Specific Plan area is comprised of eight land use districts. Each district establishes permitted land uses and development standards which are intended to implement the goals, policies and objectives of this Specific Plan, as contained in Section H, and the City's General Plan. These land use regulations and development standards constitute the primary zoning provisions for the Old Town Specific Plan area. B. ESTABLISHMENT OF LAND USE DISTRICTS AND MAP 1. Specific Plan Land Use Districts. The following Land Use Districts (Planning Areas) are hereby established within the Old Town Specific Plan area: ❑ Highway Tourist Commercial (HT) District ❑ Old Town Civic (OTC) District ❑ Tourist Retail Core (TRC) District ❑ Community Commercial (CC) District ❑ Tourist Serving Residential (TSR) District ❑ Medium Density Residential (MDR) District ❑ High Density Residential (HDR) District ❑ Open Space (OS) District The Specific Plan Land Use Map (Exhibit III-1) depicts the boundaries of each land use district within the Specific Plan area. Old Town Specific Plan III - I Old Town Temecula Specific Plan Exhibit III-1 Proposed Land Use Districts Map 2. Descriptions of Land Use Districts. a. Highway Tourist Commercial (HT). The Highway Tourist Commercial designation is intended to provide for those uses that are located adjacent to major transportation routes and may be oriented to the needs of tourists and recreation enthusiasts. Highway Tourist Commercial development should be located at appropriate locations, and developed as clusters of commercial development rather than as shallow commercial frontage along major streets. Typical uses may include tourist accommodations and lodging facilities, automobile service stations, restaurants, convenience stores, and gift shops. The facilities should be well landscaped and provide an attractive visual image. b. Old Town Civic (OTC). The Old Town Civic designation is intended to provide for public and quasi -public uses such as parks, city offices, police/fire stations, public day care centers, senior citizen centers, community centers, museums, and similar facilities. C. Tourist Retail Core (TRC). The Tourist Retail Core designation is intended to provide for those uses that support and compliment the pedestrian -oriented core. The designation typically includes small scale, boutique -type retail businesses. Service and office uses are generally allowed on either the second floor or on non -Old Town Front and non -Main Street parcels. Residential uses are allowed as ancillary uses when located above the ground floor or in the rear of the lot. Tourist retail uses are generally small businesses occupying no more than 5,000 square feet. Typical uses may include gift shops, restaurants, small hotels, bed and breakfasts, mixed use, antique shops, small hardware/decorator stores, museums, art galleries, flower shops, jewelry shops, clothing shops, custom furniture items, and similar retail uses. d. Community Commercial (CC). The Community Commercial designation includes retail, professional office, and service -oriented businesses that serve the entire community. Community commercial areas typically include neighborhood commercial uses, as well as, larger retail uses including department stores, theaters, restaurants, professional and medical offices, and specialty retail stores. e. Tourist Serving Residential (TSR). The Tourist Serving Residential designation is intended to provide for the wide range of tourist serving overnight accommodations which include senior housing, bed & breakfasts, hotels, motels, motor courts, rental cottages, and hostels. Eating places would be allowed as accessory uses. Camping and R.V. parks would not be allowed. Town Specific Plan III - 3 f. Medium Density Residential (MDR). The Medium Density Residential designation (7 to 12 dwelling units per acre) is intended to provide for the development of attached and detached residential development. Typical housing types may include single family detached, single family zero lot line, patio homes, duplexes, townhouses, condominiums, garden apartments and conventional apartments. g. High Density Residential (HDR). The High Density Residential designation (13 to 20 dwelling units per acre) is intended to provide for the development of attached residential developments. Typical housing types may include townhouses, condominiums, garden apartments, and conventional apartments. h. Open Space (OS). The Open Space designation includes both public and private areas of permanent open space along the floodways of Murrieta Creek. This designation is intended to include lands acquired by exaction, easement, fee, and other methods sanctioned by State and Federal law for parkland, for preservation of biological and cultural resources, and for protecting public safety from flood hazards. 3. Land Use District Boundaries Where boundaries of the land use districts appear to follow streets, the boundary shall follow the centerlines of said streets. Where boundaries appear to follow existing property lines, they shall follow said property lines and shall not bisect portions of existing lots of record which are in effect at the time of adoption of this Specific Plan. The boundaries with the Open Space Land Use District along the channel of Murrieta Creek may bisect adjacent parcels. C. LAND USE REGULATIONS This section includes a matrix (Table III-1) which lists the land uses and indicates whether or not each use is permitted (P), conditionally permitted (C), or prohibited (-) in each of the land use districts within the Specific Plan area. When exceptions have been established, they are so noted at the end of the table. Permitted uses for the Medium Density Residential (MDR), High Density Residential (HDR), and Open Space (OS) Planning Areas shall be the same as identified in the Development Code for the Medium Density Residential, High Density Residential and Open Space/Conservation zones, respectively, as periodically amended. Town Specific Plan 111- 4 TABLE'III-1 LAND USE MATRIX LIST OF USES TSR 5 HT OTC TRG CC A Adult entertainment businesses - - - Animal hospital - - - Antique sales - - - P P Appliance sales and repair - - - P Art, photographic studios, galleries, school supplies - - C P P Athletic, aerobic and health gyms and weight reducing clinics - - p2P Auction houses - P C Auditoriums/concert/convention halls - C P P Auto service station - P Auto Related (including motorcycles): Sales or rental (with ancillary repair facilities in a totally enclosed area) Service and repair Parts and supplies (no on -site repair) Specialty retail - C - C - P P - P P P Awnings and canvas goods, sales and service (within an enclosed building) P B Bake (retail only) P P P P Banks, savings and loans, financial institutions (new uses in excess of 1,250 sq. ft. must provide sufficient off-street parking.) P P P Barber shop P P P Bar and cocktail lounge (incidental food service only) C C C Beauty colleges Beauty shop P P P Bed and breakfast P P Bicycle rentals P P P Bicycle sales P Pi P Billiard/pool centers - P Blood bank P Blueprint and photocopy services P P Book, gift, stationary, newspaper sales P P Bowling alley Bridal shops/tuxedo and costume rentals P ' P Business colleges and professional schools P si Buness and office services P P P P Butcher shop P P Old Town Specific Plan 111- 5 TABLE III-1 LAND USE MATRIX LIST OF USES TSR HT OTC TRC GC C Cabinet making P Camera and film sales (including limited film processing) P PI P Candy and confectioneries - P P Car wash - full service - P - Car wash - self service - P - C Carpet and floor covering - P Catalog sales - - P P Catering services - P - P Check cashing services - P - P P China and glassware sales - - P 3P Clothing and apparel sales - - P P Clubs, lodges and meeting halls - P P Coin and stamp dealers - P P Communications and microwave installations Community care facilities C - Computers and video equipment P P Convalescent homes Convenience market (with or without the sale of alcoholic beverages) P P3 P Cosmetologist P P P Costume rentals P P Cultural artist exhibits, and art sales: P C P D Dance halls and discotheques C C C Dance schools and studios P, P Day care centers P P P P Delicatessens and sandwich shops P P P Department stores P P Dispensing opticians P P Discount/club membership stores Drapery and curtain sales P Drug stores and pharmacies P I P P Dry cleaning and laundry C P E Educational and tutorial centers P P Electric equipment and supplies (within an enclosed building) P Equipment sales and rental F Farmers market C C Feed, grain and tack sales - Old Town Specific Plan III - 6 TABLE III-1 LAND USE MATRIX LIST OF USES TSR 5 HT OTC TRC CC Finance and insurance offices P P P P Fishing supply stores P3 P Floor covering sales P Florist shops P P3 P Fortune telling, spiritualism or similar activity P P2 P Funeral parlors Furniture and home furnishings P3 P Furniture and upholstery repair and supplies Furriers P P G Game Arcades c3 C Garden equipment, supply, sales and service Gift, novelty, souvenirs P P P Governmental offices P P P P Grocery store and market (retail only) P P Grocery store, wholesale Gun sales P P H Hardware stores P P Health food stores P P3 P Hearing aids P 2 P Hobby and craft shops P P Home improvement centers Hospitals P Hospital equipment sales and rental agencies Hotels/motels P P P P I Ice cream and yogurt shops/soda fountains P P P Interior decorating shops P P Instant printing and photo copying services P P Insurance agents, brokers and services P P P J Janitorial supplies P Jewelry sales 133 P K Kitchen equipment sales - P L Laboratories, medical and dental P P Laundromats P Laundry service C P Lighting fixture shops P Liquor stores C C C Lithographic services P P 2 P Old Town Specific Plan III - 7 TABLE III-1 LAND USE MATRIX LIST OF USES TSR HT OTC TRC CC Locksmith stores - P P Lujzjza2e and leather goods - P P P Lumber yard - M Machine tools and sales - Mail order businesses - P P Mail services, postal boxes for rent P 2P Marine sales/service - Medical equipment sales - Membership clubs and organizations - C Message centers - P P Mini -storage - Mobil home sales - Mortuanes - Motorcycle sales and service - Movie theaters - P - P P Music, dance and exercise stores/studios - P P N Newspaper offices - - P P Newsstand - P - P P Night Clubs (with live entertainment) - C - C C Nurseries and garden supply stores - P Nursing homes - O Office, business machine sales P P Orthopedic devices sales P P P Paint, glass, and wallpaper sales P Paper productsales P P Parkin lots/garages P C C C P Parcel shipping/copy/fax center P P Pawnshop Performing arts theater - P P Pet sho s - P P Phonographic/CD/tape/record store - P P Photo -developing stores - P P P Photographic studios P P ' P Picture framing shops P P Pin ball and electronic game arcades C C C Plumbing and equipment supplies Private schools Professional and medical offices P P P P Old Town Specific Plan III - 8 TABLE III-1 LAND USE MATRIX LIST OF USES TSR 5 HT OTC TRC CC Q Reserved R Radio and TV sales - P P Radio and TV broadcasting - CZ P Real estate office P P - P , P Recording studios P - P 2P Recreational vehicle sales Recycling facilities Religious institution C C C Religious materials sales P P Residential, attached and detached P C Restaurants: Without a full bar, entertainment, or dancing (includes the incidental serving of beer and wine only) With entertainment, dancing, and/or serving beer, wine and distilled spirits P P P1 P C C C C Restaurant, fast food without a drive-thru P P P Restaurant, fast food with a drive-thru C Rooming and boarding houses P P S Second hand/thrift stores Pnp Securityand commodities brokerage firms P P Sewingsupplies and fabrics Senior citizen housingP Shoe sales and repair P Shoeshine stand P Si n shops Skating rinks Sporting goods stores P P Sports and recreational facilities P P Stationery stores P - P P Swimming pool ands a, sales and supplies T Tailor shops - P P Tanning salons P - P P Taxidermists - P P Telephone and communications store P P Theaters P P P Ticket agency/entertainment P P P Tile sales P Tobacco shops P P Old Town Specific Plan III - 9 TABLE III -I LAND USE MATRIX LIST OF USES TSR 5 HT OTC TRC CC Toy sales P P Travel agencies P P P Trophies and awards P Truck sales/rentals Typewriter and business machine sales and service P2 P U Reserved V Vending machine sales and service Veterinarian C Video sales and rentals P P W Watch and clock repair P P Wedding chapels P P Wine tasting facility P X Reserved Y Reserved Z Reserved P Use is permitted by right in this planning area C Use is permitted with a Conditional Use Permit in this planning area - Use is not Permitted in this planning area I Use is limited to under 5,000 gross square feet. 2 Use is limited to either the second floor (or higher) or to non -Old Town Front and non - Main Street parcels. 3 Use is limited to under 2,500 gross square feet. 4 Subject to the standards contained in Chapter 17.40 of the Temecula Municipal Code. 5. Non-residential projects in the Tourist Serving Residential Planning Area must either retain a predominantly residential character or be developed as a mixed use project. D. SITE DEVELOPMENT STANDARDS This section contains the development standards tables for the Specific Plan. Table III- 2 contains the site and development standards for the Highway Tourist Commercial (HT), Community Commercial (CC), Tourist Retail Core (TRC) and Tourist Serving Residential (TSR) Land Use Districts. Table III-3 contains the site and development standards for the Medium Density Residential (MDR), High Density Residential (HDR), Old Town Civic (OTC), and the Open Space (OS) Land Use Districts. Old Town Specific Plan 111-15 Table Il[I-2 DEVELOPMENTSTANDARDS COMMERCIAL LAND USE DISTRICTS' HT TRC/TSR CC Lot Size and Density Minimum Lot Area (square feet)' 10,000 3,500 8,000 Maximum Dwelling Units per Acre 0 NR Z 0 Lot Dimensions Minimum Width at Required Front Setback Area 60 feet 25 feet 60 feet Minimum Corner Lot Width 100 feet 50 feet 60 feet Minimum Depth 80 feet 80 feet 80 feet Minimum Frontage at Front Property Line 80 feet 25 feet 60 feet Setbacks Minimum Front Yard 25 feet 0 ° 0 ° Maximum Front Yard N/A 10 feet 3 20 feet Minimum Corner Side Yard 10 feet 0 0 Minimum Interior Side Yard 0 0 0 Minimum Rear Yard 10 feet 0 10 feet Minimum Accessory Building to Interior Side Yard 10 feet 10 feet 10 feet Minimum Building Separation 1 0 0 0 Other Maximum Stories/Height 3/50 feet 3/50 feet 5 2/30 feet Maximum Lot Coverage 70% 100% 70% Minimum Required Landscaped Open Space 20% 0% 6 10% Maximum Fence, Wall or Hedge HEeight feet 6 feet 6 feet Minimum Private Open Space/Unit N/A 150 sq. ft. N/A 1. This requirement does not apply to existing legal lots. 2. As a Mixed Use Project on the upper floors and in the rear lot areas only. 3. Building shall be setback exactly ten feet if no covered arcade or porch is provided at the front of the building. 4. If a continuous porch or arcade (minimum 8 feet wide) is provided at back of sidewalk (public right-of-way) 5. The maximum building height in the TSR Planning Area is limited to 2 stories or 30 feet. The requirements of Section III.F.8 also apply increases in building height in this Area. 6. Landscaping of the front yard for residential projects in the TSR Planning Area is required. Limited accent landscaping should be provided whenever possible in all other circumstances. Old Town Specific Plan III -11 TABLE 11I-3 DEVELOPMENTSTANDARDS RESIDENTIAL & PUBLIC LAND USE DISTRICTS MDR I HDR OTC OS Lot Area and Density Minimum Lot Area (square feet.) 1 7,000 7,000 None None Maximum Dwelling Units per Acre 12 20 N/A N/A Lot Dimensions Minimum Width at Required Front Setback Area 40 feet 30 feet 0 0 Minimum Average Lot Width 1 50 feet 50 feet 0 0 Setbacks Minimum Front Yard 20 feet 20 feet 10 feet 10 feet Minimum Comer Side Yard 15 feet 15 feet 0 0 Minimum Interior Side Yard 15 feet s 15 feet2 0 0 Minimum Rear Yard 20 feet 20 feet 10 feet 10 feet Minimum Accessory Building to Interior Side Yard 5 feet 5 feet 5 feet 5 feet Minimum Separations Between Buildings One Story 10 feet 10 feet 20 feet 0 Two Story 15 feet 15 feet N/A N/A Three Story 20 feet 20 feet N/A N/A Other Requirements Maximum Height 35 feet 50 feet 18 feet 18 feet Maximum Lot Coverage 35% 30% 50% 5% Minimum Required Landscaped Open Space 25% 30% 10% 80% Minimum Private Open Space/Unit 200 sq.ft. 150 sq.ft. N/A N/A 1 This requirement does not apply to existing legal lots. 2 The sum of both side yard setbacks. Distance between structures not less than 10 feet. 3 Higher maximum densities may be allowed by the City Council pursuant to the Village Center provisions described in the General Plan. Old Town Specific Plan III -12 E. RELATIONSHIP TO OTHER CODES 1. Development Code Many provisions of the Development Code (Municipal Code) will continue to apply in the Old Town Specific Plan when they do not conflict, undermine, or counteract the provisions of the Specific Plan. For purposes of consistency and clarity, special regulations or standards that are not addressed in this Specific Plan will be used by the Director of Planning to guide and control development in the Old Town area. Examples of Development Code provisions that apply to development with Old Town include, but are not limited to, the following: ■ The Administration of Zoning — Chapter 17.03, as amended ■ Permits — Chapter 17.04, as amended ■ Development Plans — Chapter 17.05, as amended ■ Supplemental Development Standards - Chapter 17.10, as amended ■ Off -Street Parking and Loading — Chapter 17.24, as amended ■ Water Efficient Landscape Design - Chapter 17.32, as amended ■ Telecommunications Facility and Antennas - Chapter 17.40, as amended 2. Conflicts Between the Specific Plan and Development Code Where there is a conflict between the regulations of the Development Code and this Specific Plan, the regulations provided herein shall prevail. Where direction is not provided in this Specific Plan, the provisions of the Development Code shall prevail. The development standards contained herein are minimum requirements. This provision shall not be used to permit uses, architectural styles or procedures not specifically authorized by this Specific Plan or the Development Code. 3. Other Applicable Codes and Codes All construction and development within the Specific Plan area shall comply with applicable provisions of the California Building and Fire Codes and the various related mechanical, electrical, plumbing codes, and the subdivision ordinance, as adopted by the City Council. In cases of a conflict between the provisions of any such code and this Specific Plan, the provision which most serves to protect health, safety, and welfare of the community shall apply and the Director of Planning shall resolve the conflict utilizing the Goals and Objectives of this Specific Plan. Old Town Specific Plan 111- 13 4. Other Special Regulations and Standards Examples of other codes and regulations that specifically apply to development within Old Town include, but are not limited to, the following: ■ Adult Business Ordinance • Mount Palomar Lighting Ordinance ■ Subdivision Ordinance F. SUPPLEMENTAL AND SPECIAL USE STANDARDS The following supplemental development standards apply to development within the Old Town Specific Plan. The supplemental and special use standards include sidewalk cafes, vending carts, mixed use development, and bed and breakfast facilities, as well as other general supplemental requirements. 1. Sidewalk Cafes a. Intent. Sidewalk cafes on public streets can enhance the pedestrian ambiance of Old Town and are encouraged. For the purposes of this section, a sidewalk cafe is defined as any group of tables and chairs, and related decorative and accessory devices, situated in the public sidewalk or along the private porches and arcades in connection with the consumption of food and beverage sold to the public from an adjoining indoor restaurant. b. Sidewalk Cafes Permitted. A sidewalk cafe may be permitted only in land use districts which allow indoor restaurants. A sidewalk cafe may be located on public sidewalks, private porches, courtyards and arcades immediately adjacent to and abutting the indoor restaurant which operates the cafe, provided that the area in which the sidewalk cafe is located extends no farther along the sidewalk's length than the actual sidewalk frontage of the operating indoor restaurant and all other applicable provisions of this section are fulfilled. C. Development Plan and Encroachment Permit Required. Sidewalk cafes may be permitted with the approval of an Administrative Development Plan, in conformity with the requirements of the Specific Plan, and with approval of an Encroachment Permit for areas located with the public right-of-way. Both of these permits may be denied, approved, or approved subject to conditions of approval. Old Town Specific Plan III - i4 d. Requirements. Sidewalk cafes shall comply with the following requirements. i. An indoor restaurant may be permitted to operate only one sidewalk cafe and each sidewalk cafe shall be confined to a single location on the sidewalk. ii. A sidewalk cafe may be permitted only where the sidewalk or porch is wide enough to adequately accommodate both the usual pedestrian traffic in the area and the operation of the proposed cafe. There shall be a minimum 48" clear distance free of all obstructions, in order to allow adequate pedestrian movement. SIDEWALK SIDEWALK CAFE �r 48' Mtn. cteotanco Hof any lobshuctlon iii All outdoor dining furniture in the public right-of-way, including tables, chairs, umbrellas, and planters, shall be movable. iv. Umbrellas must be secured with a minimum base of not less than 60 pounds. Outdoor heaters, amplified music, or speakers shall be reviewed at the time of application for a Development Plan. V. No signage shall be allowed at any outdoor cafe except for the name of the establishment on an awning or umbrella valance. vi. Sidewalk cafes do not require the provision of additional off-street parking. Town Specific Plan 111- 15 vii. If a physical barrier is required by the Department of Alcoholic Beverage Control to serve alcoholic beverages, the design and permanency of the barrier shall be approved by the Director. The physical barrier needs to conform with the design guidelines in Section IV of the Specific Plan. e. Conduct of Business and Hours of Operation. All sidewalk cafes shall comply with the following performance standards. i. A sidewalk cafe may serve only food and beverages prepared or stocked for sale at the adjoining indoor restaurant. ii. The outdoor preparation of food and busing facilities is prohibited at sidewalk cafes. iii. The presetting of tables with utensils, glasses, napkins, condiments, and the like is prohibited. All exterior surfaces within the cafe shall be easily cleanable and shall be kept clean at all times by the permittee. iv. Trash and refuse storage for the sidewalk cafe shall not be permitted within the outdoor dining area or on adjacent sidewalk areas and the permittee shall remove trash and litter as it accumulates. The permittee shall be responsible for maintaining the outdoor dining area, including the sidewalk surface and furniture and adjacent areas in a clean and safe condition. V. All furniture used in the operation of an outdoor cafe shall be removed from the sidewalk and stored indoors whenever the indoor restaurant is closed. vi. The City shall have the right to prohibit the operation of a sidewalk cafe at any time because of anticipated or actual problems or conflicts in the use of the sidewalk area. Such problems and conflicts may arise from, but are not limited to, scheduled festivals and similar events, parades, repairs to the street or sidewalk, or emergencies occurring in the area. To the extent possible, the permittee will be given prior written notice of any time period during which the operation of the sidewalk cafe will be prohibited by the City. f. Suspension or Revocation. The development plan and encroachment permit may be suspended or revoked, following notice to the permittee and a public hearing, upon a finding that one or more conditions of approval for the permit or the requirements of this section have been violated, or that the sidewalk cafe is being operated in a manner which Old Town Specific Plan III - 1 constitutes a nuisance, or that the operation of the sidewalk cafe unduly impedes or restricts the movement of pedestrians past the sidewalk cafe. 2. Vending Carts a. Purpose. Outdoor vending carts on private property promote public interest by contributing to an active pedestrian environment. However, reasonable regulation of outdoor vending carts is necessary to protect the public health, safety, and welfare. The purpose of this section is to set forth the conditions and requirements under which outdoor vendors may be permitted to operate on private property within the Specific Plan area. b. Vendor Permit Required. It shall be unlawful to sell, or offer for sale, any food, beverage or merchandise on any property within the Specific Plan area without first obtaining a Vendors Permit. Applications for a vendors permit shall include a description of the type of merchandise or food to be sold, a detailed description and photograph of the cart, and the approval of the owner of the site where the cart will be located. Vending Permits shall be reviewed and approved by the Director of Planning. The Director may apply any conditions necessary to protect the public health, safety, and welfare. C. Vending Cart Requirements. Vending carts shall comply with the following requirements. i. All vending carts shall be located only on privately owned, developed commercial property. There should be at least 150 square feet of useable or recognizable plaza or courtyard area for each vending cart. ii. The design and appearance of the vending cart shall be consistent with the carts in use between 1890 and 1920 in a character consistent with the Design Standards in Section IV of the Specific Plan. Colors used in conjunction with any vending carts located in the Old Town Specific Plan area shall be consistent with the Sherwin-Williams Preservation Palette. iii. Any umbrellas or accessory items used with vending carts shall be made from high quality canvas, utilize a monochromatic color scheme consistent with the Preservation Palette and have no written or graphic advertising. iv. No cart shall exceed 4 feet in width, 8 feet in length, and 8 feet in height. Old Town Specific Plan 111-17 V. Vending carts should be free of all obstructions within a six-foot perimeter. vi. No advertising, except the posting of prices and product identification is permitted on any vending cart. The total allowable square footage for vendor cart signage shall not exceed four square feet on up to two opposing sides of the cart. d. Conduct of Business and Hours of Operation. All vending carts shall comply with the following performance standards. i. Operate only between 6 a.m. and 10 p.m. unless in conjunction with an approved special event. ii. All items for sale to shall be placed only in, on or under the vending cart. No additional merchandise preparation or sales table, crate, carton, rack, or any other device to increase the selling or display capacity of the cart shall be used unless it has been approved in writing by the Director of Planning. iii. Shall not solicit or conduct business with persons in motor vehicles. iv. Shall not operate any loud speaker, public address system, radio, sound amplifier, or similar device. V. All vending carts shall require an approved City of Temecula business license. vi. Vending carts selling food or beverages shall comply with the requirements of the Health Department and shall provide a trash receptacle for public use. vii. Shall clean up the area around where the vending cart had been. This includes removing and disposing of all trash or refuse. viii. The Director of Planning may require that the vending can be removed from the location and stored out of public view when not in use. Old Town Specific Plan 111-18 e. Denial, Suspension or Revocation of a Vending Permit. Any license may be denied, suspended, or revoked in accordance with the procedures in the Development Code for any of the following causes: Fraud or misrepresentation contained in the application for the license. ii. Fraud or misrepresentation made in the course of carrying on the business of vending. iii. Conduct of the licensed business in such manner as to create a public nuisance, or constitute a danger to the public health, safety, welfare, or morals or inconsistent with any conditions of approval. iii. Conduct of the business which is contrary to the provisions of this section or the conditions of approval. 3. Mixed Use Projects a. Purpose. The development of mixed use projects can present unique design issues not encountered in more conventional single use projects. The primary design issue relates to the need to successfully balance the requirements of commercial and residential uses. Typical examples include: a residential uses need for privacy and security, with the needs of commercial uses for access, visibility, parking and loading. For the purpose of this Specific Plan, mixed use projects are defined as developments which combine both commercial and residential uses or structures on a single lot, or as components of a single development in the Tourist Retail Core and Tourist Serving Residential Planning Districts. The uses may be combined either horizontally or vertically on the site. This means with office and residential uses on upper floors with retail on the ground floor, or with commercial uses on the primary street and residences on the rear of the property. b. Conditional Use Permit Required. A mixed use project may only be established after first obtaining a Conditional Use Permit, as described in the Development Code, and in conformance with the requirements of this section. Old Town Specific Plan III -19 C. Limitations and Requirements. Mixed use projects that provide commercial space on the ground floor with residential units above (vertical mix) are encouraged though residential units behind commercial space (horizontal mix) are also allowed. ii. The number of residential dwelling units shall be based on the carrying capacity and design characteristics of each project. iii. Residential units may not occupy ground floor space fronting on Old Town Front or Main Streets. iv. Structures with heights greater than two stories shall set back on the street frontage sides for the third floor portion of the structure a minimum of 10 feet. V. All roof mounted equipment shall be screened in accordance with the requirements of the Development Code. Special consideration shall be given to the location and screening of noise generating equipment such as refrigeration units, air conditioning, and exhaust fans. Noise reducing screens and insulation may be required where such equipment has the potential to impact residential uses. vi. If onsite resident parking is provided, separate access drives and parking facilities should be provided for residential uses and commercial uses whenever possible. vii. Residential visitor parking and commercial parking may be located within the same location/facility. 4. Bed and Breakfast Establishments a. Purpose. The purpose of this Section is to provide standards for the development/operation of Bed and Breakfast establishments in Old Town. b. Requirements. All Bed and Breakfast Establishments in Old Town shall comply with the provisions contained in Chapter 17.10 of the Temecula Municipal Code, except for the minimum lot size and the requirement that the primary residence be the principle use of the site. Old Town Specific Plan III - 20 C. Supplemental Requirements. In addition to the requirements stated above, the following shall also apply to Bed and Breakfast Establishments within the Specific Plan. Off-street parking shall be provided at a ratio of one space for each bedroom available for rent in addition to the parking required for the primary dwelling unit. This requirement can be satisfied through a centralized public parking lot if the owner participates in a parking assessment district and the facility is located nearby. ii. Signage shall be limited to one on -site sign not to exceed 6 square feet in area. The sign may be freestanding. iii. The exterior appearance of the structure housing the Bed and Breakfast should be either a Queen Anne (Victorian), Bungalow, or other residential style of building in existence in the early 1900's. 5. Minimum/Maximum Storefront Width For purposes of regulating the development of, and the division of existing storefronts, no storefront facing a public street shall be less than 20 feet wide or more than 100 feet wide. 6. Minimum Commercial/Office Building Subdivision Size For purposes of regulating the permanent subdivision of the interior (floor to ceiling walls) of an existing storefront on the first floor, no building in the Specific Plan area shall create interior retail space intended for business purposes less than 500 gross square feet. Exceptions to this requirement may include restrooms and storerooms. 7. Loading Facilities Loading and unloading facilities shall be visually screened from access streets and adjacent properties and constructed in a manner to reasonably contain and restrict emission of noises typically attributed to such function. When screening of loading and unloading facilities is physically not possible, the facilities shall be architecturally integrated into the overall design of the building. 8. Building Height Increases The City Council may approve increases in building height, above the number of floors and total height in Tables III-2 and III-3, for any project that complies with the architecture and design guidelines and achieves the objectives, goals, and policies of the Old Town Specific Plan. Old Town Specific Plan 1I1- 21 9. Roof Mounted Equipment All roof mounted equipment shall be screened in accordance with the requirements of the Development Code. Special consideration shall be given to the location and screening of noise generating equipment such as refrigeration units, air conditioning, and exhaust fans. Noise reducing screens and insulation may be required where such equipment has the potential to impact residential uses. 10. Parking Requirements To minimize the amount of land committed to parking lots within the Old Town area, not all uses within the Specific Plan will be required to provide onsite parking. In most cases, the determination whether or not parking will be required will be based upon the Land Use District and the type of business. When onsite parking is required, the standards contained in Chapter 17.24 of the Temecula Municipal Code will normally be used to determine the number of required parking spaces. The following is a list of Land Use District parking requirements within the Old Town Specific Plan. ❑ Tourist Retail Core District — Onsite parking is required only for hotels, motels, and banks and financial institutions that are more than 1,250 square feet is size. (The parking requirement for bed and breakfast establishments are contained in Section III.F.4.c of this Specific Plan.) ❑ Community Commercial District — All uses shall provide onsite parking. ❑ Highway Tourist Commercial District — All uses shall provide onsite parking. ❑ Old Town Civic District — Onsite parking should be provided when practical. ❑ Tourist Serving Residential District — Onsite parking is required only for hotels and motels. (The parking requirement for bed and breakfast establishments are contained in Section IH.F.4.c of this Specific Plan.) ❑ Medium Density Residential District — All uses shall provide onsite parking. ❑ High Density Residential District — All uses shall provide onsite parking. ❑ Open Space District — Onsite parking should be provided when practical and appropriate for the use. However, the Director may require assembly uses with high parking demands to provide additional off-street parking. In making this determination the Director can consider the size and location of the proposed use, the hours of operation, the availability of nearby on- and off-street parking resources, and its proximity to other assembly and restaurant uses. Old Town Specific Plan III - 11. Parking Location Restricted Locating parking lots between the front property line and any building is prohibited in the Tourist Retail Core planning area. 12. Vehicle Access Restricted Direct vehicle access shall not be allowed from a private property onto Old Town Front Street and Main Street (between Old Town Front Street and Murrieta Creek). Vehicular access from a private parking lot to Old Town Front Street or Main Street shall be to a side street or public parking areas. The Director of Planning may allow exceptions only in case of landlocked properties. 13. Pujol Access Standards Due to the higher volume of anticipated traffic on Pujol Street, the following standards are provided: a. Driveways on adjacent properties shall be placed as far from one another as possible; b. Only one driveway per Pujol frontage shall be allowed, except for emergency access, on lots with under 200 feet of Pujol Street frontage; C. Additional driveways shall only be allowed on lots with over 200 feet of Pujol frontage; and d. Driveways on the same property shall be located at least 250 feet apart. 14. Exterior Lighting a. All exterior lighting fixtures shall comply with the requirements of the Mount Palomar Lighting District. b. All lighting of the building, landscaping, parking lot, or similar facilities, shall be so shielded and directed as to reflect away from adjoining properties. C. Security lighting fixtures are not to be substituted for parking lot or walkway lighting fixtures and are restricted to lighting loading, storage areas, and similar service locations. d. It is highly desirable and recommended for tenants and property owners to utilize low voltage "tivoli" or "dazzler" to decorate building facades. Town Specific Plan III - 23 G. SIGN REGULATIONS The intent of these regulations is to establish specific standards for all exterior signage that will ensure continuity, consistency, and harmony with the architectural quality of the Old Town environment as it may have appeared in the early 1900's. 1. Applicability These regulations shall apply to all signage within the Tourist Retail Core and Tourist Serving Residential areas of the Specific Plan. Signage within the Highway Tourist Commercial District, Community Commercial, Medium Density Residential District, and High Density Residential Land Use Districts shall comply with the sign requirements contained in the Development Code and the Signage Design Guidelines contained in Section IV.J of the Specific Plan. 2. Permit Required Unless specifically stated in these regulations, a sign permit is required prior to placing, erecting, moving, reconstructing, altering, or displaying any sign within the Specific Plan. 3. Prohibitions No person shall erect, re -erect, construct, enlarge, alter, move, improve, remove, convert, or equip any sign or sign structure or cause or permit the same to be done contrary to, or in violation of, the provisions of these sign regulations. All signs not expressly permitted by this Section are prohibited. No application for sign permit or other application for a prohibited sign shall be accepted, acted upon, or approved. 4. Prohibited Signs in Old Town ❑ Freestanding signs on lots with less than 300' of road frontage ❑ Roof mounted signs ❑ Animated signs, including time and temperature displays ❑ Rotating, moving, emitting, or flashing signs ❑ Balloon signs ❑ Ambient air balloons ❑ Internally illuminated signs, including front and back lit awning and window locations ❑ Neon tube signs ❑ Window signs above the second story ❑ Paper, cloth, or plastic streamers or bunting - except holiday decorations Cl Formed plastic or injection molded signs ❑ Statues used for advertising ❑ Traffic sign replicas ❑ Vehicle signs Old Town Specific Plan III - 24 ❑ Any sign prohibited by the Development Code and not expressly permitted in this Specific Plan 5. Permitted Signs ❑ Wall Mounted Signs (business identification) ❑ Supergraphics ❑ Monument Signs ❑ Window Signs ❑ Under Canopy Signs ❑ Awning Signs ❑ Projecting Signs ❑ Indirectly Illuminated Signs ❑ Temporary A -Frame or Sandwich Board Signs 6. Sign Standards a. Wall Mounted Signs. Maximum of one square foot per linear frontage foot of business establishment. To be located no higher than the lowest of the following points: • 25 feet above grade; • Bottom of the sill line of the second floor windows; or • Cornice line of the building. b. Supergraphics. The purpose of allowing wall supergraphics is to allow the advertising or depiction of products that may have been available in an 1890's marketplace. A supergraphic is a mosaic, mural, painting, graphic art, or combination thereof which is professionally applied to a building that does not contain any brand name, product name, letters of the alphabet spelling or abbreviating the name of any product, company, profession, or business, or any logo, trademark, trade name, or other commercial message. Maximum size shall not exceed 60% of wall surface. C. Monument Signs. A maximum of one double sided sign per street frontage if said street frontage is over 150 feet. Height of sign shall not exceed 6 feet above grade. Width shall not exceed 4 feet. Each tenant placard shall not exceed 12 inches" high. Sign may only be indirectly illuminated, internal illumination is prohibited. No monument signs are allowed if the street frontage is less than 150 feet. d. Permanent Window Signs. On ground level, coverage shall not exceed 20 percent of the total window and door area visible from the exterior of the building; on second level, coverage shall not exceed 30 percent per window. (No window signs are permitted above second floor). Old Town Specific Plan 111 - L-) e. Awning Signs. On ground floor level; 20 percent maximum coverage allowed of the total exterior surface area of each awning. On the second floor level and above; 10 percent maximum coverage allowed of the total exterior surface area of each awning. Internal illumination prohibited. f. ProjectingSigns. igns. One per business allowed; maximum size may not exceed 3 square feet and shall not extend more than 3 feet from the wall surface. No illumination is allowed. Projecting signs shall only be attached to buildings, not to poles or other signs. Projecting signs may encroach into the public right-of-way a maximum of 3 feet subject to the approval of the Director of Planning. Town Specific Plan III - 26 g. Under Canopy Signs. One per business allowed under a canopy, roof, covered walkway, or porch; maximum size of 3 square feet per door entrance; minimum of 7 feet of vertical clearance shall be required from walking grade to the bottom of the sign. h. Temporary Signs. Temporary grand opening and special event signs are allowed for each business establishment on the exterior wall. Signs shall not be attached to any other freestanding element (porch balustrade, garden wall, tree, monument sign, vehicle, etc.). Signs shall be constructed of cloth, canvas, or other durable material. Plastic or vinyl banner signs are not permitted. The use of neon colored/day glow banner signs is also prohibited. All temporary signs, except for A-Frame/Sandwich Boards, shall abide by the provisions of the Ordinance Regulating Temporary Signs, as amended. A-Frame/Sandwich Board Sign. One A -frame or sandwich board sign allowed per property on Friday, Saturday, Sunday, and nationally designated Monday holidays. The size shall not exceed 3.5 feet high and 2 feet wide. A -frame signs shall not block the sidewalk and may not be illuminated. No permit is required for A -frame and sandwich board signs which comply with these provisions. Old Town Specific Plan 111- 27 Menu Boards. One menu board, up to 4 square feet in area, is allowed for each restaurant or other eating establishment. Menu Boards may contain only the name of the establishment and the food available inside. The menu board must be located on a wall adjacent to the main customer entrance. Appropriate location for menu board . sign k. Multi -Tenant Project Signs. Any project that proposes to provide space for more than one tenant shall indicate the size and approximate location of all signs to be erected on the property at the time of initial application. Signs shall be shown on elevation drawings with accurate dimensions provided. Old Town Specific Plan III - 28 H. GENERAL PROVISIONS AND REGULATIONS The following regulations apply within all land use districts in the Old Town Specific Plan area. 1. Land Use Determinations. Whenever a particular type of land use is not listed in Table III-1, the Director of Planning shall determine if that unspecified land use is consistent with the overall intent of the district, in which the use is proposed; and is consistent with other permitted or conditional uses in that district. The Director's determination shall be final. 2. Nonconforming Uses and Structures. Where, at the time of passage of this Specific Plan, a lawful use of land or structure exists which would not be permitted by the regulations imposed by this Specific Plan, such use or structure may be continued indefinitely unless one of the following is involved: ❑ If the nonconforming use vacates the property and the nonconforming use is not reestablished within one year, the use shall not be reestablished. ❑ If the nonconforming use voluntarily vacates the property after the year 2013 for any reason, a nonconforming use shall not be reestablished. ❑ If more than 50% of a nonconforming structure is damaged or destroyed, the nonconforming structure shall not be reestablished. ❑ If more than 25%, but less than 50%, of a nonconforming structure is damaged or destroyed, the structure may be replaced if the exterior of the repaired structure substantially conforms to the architectural standards contained in Section IV of this Specific Plan. 3. Adaptive Re -use Parking Waiver. In order to preserve historic or unique existing buildings in the Old Town Specific Plan area, additional off-street parking shall not be required for the use or intensification of use for these buildings. These designated historic buildings and structures are identified in the Old Town Historic Preservation District Ordinance (Section V.0 of the Specific Plan). 4. Public Right -of -Way Encroachments. In order to accomplish the overall design theme required by this Specific Plan, it may be appropriate to allow certain building accessories (e.g. awnings, trellises, stairs to porches, or projecting signs) to encroach into the public right-of-way. The Director may approve such encroachments under the Development Plan approval process provided in the Development Code. Old Town Specific Plan III - 29 5. Temporary Use Permits. Permits for temporary uses in the Old Town area shall conform with the provisions of Section 17.04.020 of the Temecula Municipal Code except that the outdoor display and sales of merchandise, customarily sold by the permanent Old Town business, is limited to four events per year. Each event is not to exceed four (4) consecutive days. 6. Setback Area Encroachments. Adjustments to setback requirements of up to 25% may be approved or conditionally approved by the Director of Planning if it can be demonstrated that the encroachment is otherwise compatible with the Specific Plan, and will enhance the overall appearance of the project or serve a particular useful function for the general public. Common examples of these encroachments include awnings, canopies, marquees, trellises, stairs, and other similar desirable architectural items. 7. Violations. It shall be unlawful for any person to violate any provision of this ordinance. Any person violating any provision of this ordinance shall be deemed guilty of an infraction or misdemeanor as hereinafter specified. Such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this ordinance is committed, continued, or permitted. Any person so convicted shall be, guilty of an infraction offense and punished by a fine not exceeding $100.00 for a first violation; and guilty of an infraction offense and punished by a fine not exceeding $200.00 for a second infraction. A third and any additional violation shall constitute a misdemeanor offense and shall be punishable by a fine not to exceed $1,000.00 or 6 months in jail, or both. Notwithstanding the above, a first offense may be charged and prosecuted as a misdemeanor. Payment of any penalty herein shall not relieve a person from the responsibility for correcting any violation. Town Specific Plan III - V. OLD TOWN HISTORIC PRESERVATION DISTRICT CONTENTS A. Purpose Page V-1 B. Establishment of the District Page V-1 C. Building Permits and Prohibitions Page V-1 D. Old Town Local Review Board (OTLRB) Page V-2 E. Old Town Local Historic Register Page V-3 F. Certificate of Historic Appropriateness Page V-6 G. Care and Maintenance Page V-8 H. Additional Violation Provisions for Historic Structures Page V-9 A. PURPOSE Protecting the cultural heritage and historical architectural resources found in Old Town is part of the overall goal for the revitalization of Old Town and the protection of the community's heritage. The Old Town Specific Plan also gives owners of eligible historic properties relief from the contemporary municipal codes, ordinances, taxes, and laws levied on newer contemporary structures. B. ESTABLISHMENT OF THE DISTRICT The boundary of the Old Town Historic Preservation District shall be coterminous with the boundary of the Old Town Specific Plan. C. BUILDING PERMITS AND PROHIBITIONS 1. Within the boundaries of the Old Town Historic Preservation District no person shall demolish, remove, relocate, alter, cause to be altered, or modify any designated historic building or structure without the issuance of a Certificate of Historic Appropriateness. 2. Within the boundaries of the Old Town Historic Preservation District, no person shall alter, or cause to be altered, any designated historic building or structure, except in strict compliance with the plans approved in conjunction with the issuance of a Certificate of Historic Appropriateness. 3. Within the boundaries of the Old Town Historic Preservation District, no person shall relocate, or cause to be relocated, alter, or cause to be altered, construct, or cause to be constructed, any building or structure, except in strict compliance with the plans approved in conjunction with the issuance of a Certificate of Historic Appropriateness. Old Town Specific Plan V -1 4. Within the boundaries of the Old Town Historic Preservation District, no building permit shall be issued unless a Certificate of Historic Appropriateness is first issued in compliance with the provisions of this Chapter. 5. Interior building changes to non -historic building and structures that do not effect the buildings exterior are not required to obtain a Certificate of Historic Appropriateness. 6. Nothing in this section shall be construed so as to exempt any person from complying with any other provision of law. D. OLD TOWN LOCAL REVIEW BOARD (OTLRB) The Old Town Historic Preservation District shall have an advisory review board known as the Old Town Local Review Board to provide input into all major projects within the Old Town Specific Plan. The Director of Planning may also provide the Board with information on major projects adjacent to Old Town that may have the potential to effect the Old Town area. 2. The Old Town Local Review Board shall be composed of five members and one alternate (who shall serve in the absence of any member). Board members shall be appointed by the City Council for terms of 3 years. The member terms shall be staggered so that all the members of the Old Town Local Review Board are not appointed at the same time. All members shall exhibit an interest in and knowledge of the history and architecture of the Old Town Historic Preservation District. At least one member shall be knowledgeable in architectural and construction techniques. Members shall serve without pay. 3. The Old Town Local Review Board shall hold regular public meetings and establish such rules as may be appropriate or necessary for the orderly conduct of its business. Three members shall constitute a quorum. At its first meeting of the year, the Board members shall elect a Chairman and Vice Chairman (who will officiate the meetings when the Chairman is absent), who shall serve for terms of one year. 4. The Old Town Local Review Board shall have the following powers and duties in addition to those otherwise provided in this ordinance: a. Provide for pre -application conferences with individuals interested in constructing or altering property within the Old Town Historic Preservation District. The purpose of these conferences shall be to familiarize the applicant with the historic significance and related architectural themes of the district. b. Utilize the adopted Old Town Specific Plan Design Guidelines in the review of applications as part of process to make determinations of consistency and appropriateness with the specific plan. Use the Design Guidelines as a basis for approving or denying applications for a Certificate of Appropriateness. Old Town Specific Plan V - 2 C. Explore means for the protection, retention, and use of any significant structures, natural features, sites, and areas in the district including but not limited to appropriate legislation and financing by independent funding organizations, or other private, local, state, or federal assistance. d. Serve as an advisory resource to all agencies of the City in matters pertaining to the Historic District, and to encourage efforts by, and cooperation with individuals, private organizations, and other governmental agencies concerned with preservation of the district's architectural, environmental, and cultural heritage. C. Render advice and guidance, upon request of the property owner or occupant regarding construction, restoration, alteration, decoration, landscaping, or maintenance of any structure, natural feature, site or area within the district. f. Encourage public understanding and appreciation of the unique architectural, environmental, and cultural heritage of the district through educational and interpretative programs. E. OLD TOWN TEMECULA LOCAL HISTORIC REGISTER 1. The City Council has identified the following historic buildings and structures in the Old Town area. These building and structures are officially designated on the Local Historic Register for the City of Temecula. All buildings on this list are eligible to receive any and all benefits authorized by the State of California for designated historic structures. The use of the Historic Building Code is specifically authorized. 2. The list of Designated Historic Buildings and Structures is as follows. The locations of the designated historic buildings and structures are also shown on Exhibit V-1. A. Saint Catherine's Church, 1920 B. Welty Building, 1897 C. Machado Store, 1910 D. Clogstone Restaurant, 1932 E. First National Bank, 1914 F. Palomar Hotel, 1915 G. Alec Escallier House, 1927-28 H. Burnham Store, 1902 I. Friedeman Meat Market, 1901 J. Welty Hotel, 1891 K. J.D. Welty, 1936 L. Arviso House, 1920 M. Unnamed residence, 1928 N. Bill Friedeman House, 1922 28314 Mercedes Street 28659 Old Town Front Street 28656 Old Town Front Street 28676 Old Town Front Street 28645 Old Town Front Street 28522 Old Town Front Street 41852 Main Street 42051 Main Street 42050 Main Street 42100 Main Street 42081 3rd Street 41915 4th Street 42251 6th Street 42291 6th Street Old Town Specific Plan V - 3 O. Nienke House, 1936 28575 Pujol Street P. McConville House, early 1890's 28585 Pujol Street Q. Albert Nienke House, early 1920's 28649 Pujol Street R. G.A. Burnham House, early 1880's 28653 Pujol Street S. Al Otto House, 1882 28717 Pujol Street Saint Catherine's Church building (Historic Building "A") was relocated to Sam Hicks Monument Park in 1992. The Bill Freideman House (Historic Building "O") was relocated on the same site in 2003 as part of housing project sponsored by the City Redevelopment Agency. 3. Since the initial adoption of the Old Town Specific Plan, a number of previously designated historic structure were determined to be substantially dilapidated and/or unsafe and it was determined that these historic structures could not be rehabilitated. The following is a list of designated historic structures that were demolished since the Plan's initial adoption 1994. This listing has been provided for historic documentation purposes only. a. Harry Walters House, 1930's, 28535 Pujol Street Removed in 1996 b. Unnamed residence, 1920, 28735 Pujol Street Removed in 1999 C. Knott's Garage, 1910, 28545 Old Town Front Street Removed in 2000 d. Angel Ramirez House, 1926, 28731 Pujol Street Removed in 2002 e. Fred Ramirez House, 1920, 28725 Pujol Street Removed in 2002 Old Town Specific Plan V - 4 O99\ Old Town Temecula Specific Plan Exhibit V-1 Historic Structures Map A Saint Catherine's Church, 1920 B. Welly Building, 1897 C. Ma&mdo Store, 1910 D. Clogsterre Restaurant, 1932 E. First National Bank 1914 F. Palo nar Hotel, 1916 G. Alec Esrallier louse, 1927-28 H. Bumham Sloe, 1902 I. Friedemen Meal Market 1901 J. Welly Hotel 1891 K. J.D. Welty, 1936 L. Arvlso House, 1920 M. Unnamed residerwe, 1928 N. Bill Fdedemen House, 1922 O. Nianke House, 1936 P. McConville House, early 1890's 0. Albert Nlenke House, early 1920's R. G.A. Burnham House, early 1880's S. AI Oao House, 1882 LEA 28314 Mercedes Street 28669 Old Town Front Street 28656 OM Twin Frond Street 28676 Old Town Front Street 28645 Old Town From Street 28522 Old Town Frain Street 41852 Main Street 42051 Main Street 42050 Maln Street 42100 Main Street 42081 3rd Street 41915 4th Street 422516th Street 42291 Sth Street 28575 R401 Strest 28585 Pujol Street 28649 Pujol Street 28653 Pujol Street 28717 Pujol Street A 400 N C 400 800 Feat r.�glsUrellamcviewprojeda W dtawn_8_Nabric_atructurea.ep F. CERTIFICATE OF HISTORIC APPROPRIATENESS 1. No existing building or structure may be altered or demolished, and no new building or structure constructed without the prior approval of a Certificate of Historic Appropriateness pursuant to the provisions of this Section. 2. Certificates of Historic Appropriateness may be issued either by the Director of Planning or the Planning Commission or City Council as part of the approval process for any development within the Old Town Specific Plan. The determination of who approves the Certificate of Historical Appropriateness shall be based upon the approval authority established by the Development Code for the accompanying application. No development application for Level Two projects in Old Town, as described below, may be approved without a recommendation from the Old Town Local Review Board. 3. For the purposes of implementing the provisions of the Old Town Specific Plan there are two levels of Old Town development project. The first category is the ministerial or minor projects, referred to as Level One projects. The second category is for non - ministerial and major projects, also called Level Two projects. a. Level One Projects do not require the review and recommendation of the Old Town Local Review Board. Level One projects may be approved by administrative (staff only) review following the Director of Planning's determination to grant a Certificate of Historical Appropriateness. Typical examples include the following: • Interior changes or alterations to historic structures; • Re -landscaping around existing structure; • Re -roofing of an existing building; • Additions and remodels to non -historic single family residences; • Exterior architectural modifications to an existing commercial, office, or residential building effecting less than 25% of the front or street side exterior facade; • The demolition to non -historic buildings and structures; • New signs up to 12 square feet in size; and • Changes in the copy of previously approved signs. The Director of Planning, at their sole discretion, may forward Level One projects to the Old Town Local Review Board when unique circumstances, or the sensitivity of adjacent historic structures or land uses indicate the potential for an adverse aesthetic impact. Old Town Specific Plan V - 6 b. Level Two Projects have the potential for significant aesthetic impacts. Level Two Projects shall always require review by the Old Town Local Review Board prior to action by the approving authority. Typical examples of Level Two projects include, but are not limited to, the following: • Multi -family residential projects; • New commercial and office projects; • Exterior architectural modifications to an existing commercial, office, or residential building when 25% or more of the front or street side exterior facade is affected; • The alteration to a designated historic structure; • The demolition of, or substantial alteration to, a designated historic structure (requires Planning Commission approval); • New signs over 12 square feet; • Mini -monument signs located on architectural features that exceed the standard height requirement of four feet; and, • The removal of a specimen oak tree with a 10 inches or greater trunk diameter. 4. All applications shall be filed on the forms and in a manner determined by the Director of Planning. Applications shall not be accepted unless they are accompanied by the appropriate filing fee and such information and drawings as may be required by the Director of Planning. All applications for Certificates of Historic Appropriateness shall be signed by either the owner of the property or a person authorized by the owner. All drawings shall be signed by the architect responsible for the design and must be in sufficient detail to show the proposed design for the site. This includes the architectural design and elevations (including signs), proposed materials, textures and colors (including material samples), and the site layout (including all improvements affecting appearances, such as walls, walks, terraces, plantings, accessory buildings, signs, lights, and other similar elements). 5. Following the receipt of a complete application, the Director of Planning shall schedule a meeting of the Old Town Local Review Board within 60 days and provide the Board with a staff report, including a copy of the site plan and elevations. The Board shall review the application material and make a recommendation to approve or deny, with or without conditions, any requests for a Certificate of Historic Appropriateness to the approval authority designated by the Development Code. Old Town Specific Plan V - 2 6. In considering applications for Certificates of Historic Appropriateness, the Old Town Local Review Board shall make the following findings: a. That the proposed structure is in conformance with the general plan for Temecula and with all applicable requirements of state law and other ordinances of the city and is designed for the protection of the public health, safety, and general welfare. b. That the proposed structure is in conformance with the requirements of the Old Town Specific Plan, including the goals, objectives and policies, and architectural guidelines and standards. C. In the event of the proposed demolition of a designated historic building or structure, the Board shall also be required to find that applicant has submitted substantial evidence that the structure is imminently dangerous or unsafe and that the structure can not be effectively repaired or retrofitted. 7. The expiration date for a Certificate of Historic Appropriateness shall be the same as expiration date for the accompanying planning application, as may be extended pursuant to the provisions of the Development Code. If the Development Code does not specify an expiration date, the project which the Certificates of Historic Appropriateness was approved shall commence construction within three years of the date of approval or the Certificate of Historic Appropriateness shall become null and void. No extensions of time will be allowed for these projects. G. MAINTENANCE AND CARE The owner, occupant, or other person in actual charge of an building or structure on Old Town Temecula Local Historic Register shall keep in good repair all of the exterior portions of such improvement, building, or structure, all of the interior portions thereof when subject to control as specified in the designation statement, and all interior portions thereof whose maintenance is necessary to prevent deterioration and decay of any exterior architectural feature. 2. Nothing in the requirements of section shall be construed to prevent the ordinary maintenance or repair of any exterior architectural feature in or on any designated Old Town Temecula Local Historic Register building of structure that does not involve a change in design, material, or external appearance thereof. Old Town Specific Plan V - d H. ADDITIONAL VIOLATION PROVISIONS FOR HISTORIC STRUCTURES In addition to the general violation provisions in Section III.H.7 of the Specific Plan, any person who demolishes, alters or removes a building or structure on the Old Town Temecula Local Historic Register, that person and the owner shall be required to restore the building, site, or structure to its original condition and setting prior to the violation within ninety days. Any action to enforce this provision may be brought by the city or any other interested party. This civil remedy shall be in addition to, any criminal prosecution and penalty and any other remedy provided by law 2. If any person demolishes or removes an building or structure on the Old Town Local Historic Register in violation of this section, no building or construction related (including grading) permits or permits to use the property as a parking area or other commercial venture shall be issued for a period of up to seven years, at the City Council's discretion, based on the significance of the resource from the date of demolition, except to replicate the lost resource. The failure to adequately maintain a designated historic building or structure can also be considered to constitute the unauthorized demolition of a building or structure on the Old Town Temecula Local Historic Register. For the purpose of this section, the demolition shall be presumed to have occurred on the date the city has actual knowledge of the demolition. The owner shall have the burden of providing an earlier date, if entitlement to an earlier date is claimed. The owner shall have the affirmative obligations to plant grass, to provide a temporary irrigation system to maintain such landscaping and to prevent the accumulation of debris and waste on the property during the interim period. Old Town Specific Plan V - 9 ATTACHMENT NO. 3 DRAFT OF THE UPDATED OLD TOWN SPECIFIC PLAN R:\OTSP\Plan Amendments\PA03-0158\Staff Report CCt.doc 12 FINAL PUBLIC HEARING DRAFT AUGUST 2004 Old Town Specific Plan Table of Contents I. INTRODUCTION TO THE SPECIFIC PLAN A. Background and History Page I-1 B. Authority for the Plan Page I-3 C. Organization for the Specific Plan Page I-5 H. GOALS, OBJECTIVES, AND POLICIES A. Introduction Page H-1 B. Overall Goal Page II-1 C. Goals, Objectives, and Policies 1. Community Design Page H-2 2. Land Use/Economics Page 1I-4 3. Circulation/Parking Page 11-5 4. Murrieta Creek Page 11-7 D. Infrastructure Plans Page II-8 III. LAND USE AND DEVELOPMENT STANDARDS A. Introduction Page III-1 B. Establishment of Land Use Districts and Map Page III-1 C. Land Use Regulations Page III-4 D. Site Development Standards Page 1II-11 E. Relationship of the Specific Plan to Other Codes Page III-13 F. Supplemental and Special Use Standards Page III-14 G. Sign Regulations Page III-24 H. General Provisions and Regulations Page III-29 IV. DESIGN GUIDELINES A. Purpose and Intent Page IV-1 B. Architectural Style Guidelines Page IV-2 C. Site Planning Guidelines Page IV-25 D. Parking Lot Guidelines Page IV-35 Old Town Specific i IV. DESIGN GUIDELINES (CONTINUED) E. Landscape Guidelines Page IV-37 F. Lighting Guidelines Page IV-40 G. Public Art Guidelines Page IV-41 H. Outdoor Dining / Sidewalk Furniture Guidelines Page IV-45 I. Paving Material Guidelines Page IV-46 J. Sign Design Guidelines Page IV-47 K. Streetscape Guidelines Page IV-51 V. OLD TOWN HISTORIC PRESERVATION DISTRICT A. Purpose Page V-1 B. Establishment of the District Page V-1 C. Building Permits and Prohibitions Page V-1 D. Old Town Local Review Board (OTLRB) Page V-2 E. Old Town Local Historic Register Page V-3 F. Certificate of Historic Appropriateness Page V-6 G. Care and Maintenance Page V-8 H. Additional Violation Provisions for Historic Structures Page V-9 List of Exhibits Exhibit I-1 Study Area Map Page I-4 Exhibit H-1 Circulation Map Page II-9 Exhibit U-2 Water Distribution System Map Page II -I I Exhibit II-3 Wastewater Collection System Map Page H-12 Exhibit III-1 Land Use District Map Page III-2 Exhibit V-1 Historic Structures Map Page V-5 Old Town Specific 1 - Z I. INTRODUCTION TO THE SPECIFIC PLAN CONTENTS: A. Background and History Page I-1 B. Authorityfor the Plan Page I-3 C. Organization for the Specific Plan Page I-S A. BACKGROUND AND HISTORY The site of Old Town Temecula, as we know it today, came into being generally in the 1880's with the arrival of the railroad and the moving of the post office to the present town's location. However, the area has a much earlier beginning dating back to the original village settled by the Shoshonean Indians around 900 A.D. along the banks of the Temecula River. Our discussion of historical events begins somewhat later with the arrival of the first white visitors, Father Juan Narberto de Santiago and seven soldiers who traveled to the area from the Mission San Juan Capistrano in the early 1800's. In order to establish the Mission's agricultural area, a granary and chapel were established in 1818 which marked the first settlement in the area by the white man. Not long after, in 1830, John McGee built a general store near the Pauba Ranch Headquarters, further increasing the presence of the white man in the area. The Indians lived a quiet existence until 1847 when they clashed with the Californians in one of the bloodiest battles of the Mexican War. The "Temecula Massacre" as it is referred to by local historians changed the Indian's relationship with the area and generally paved the way for increased settlement. During the next 25 years, white settlers began to move into the area in increasing numbers, pushing the Indians off of the more desirable land and further into the foothills. In 1885, John Butterfield founded a mail and passenger stage coach route which had a regular stop in Temecula. With the addition of the stage coach, Temecula experienced its first development boom. A post office was built in 1859 on a site near John McGee's general store. The stage line was halted, however, in 1861 because of the Civil War. Some of the most important historic buildings in Old Town come from this time period. The Welty Building, built in 1897, served as a general store with rooms to rent. In 1908, this building was transformed into the Ramona Inn, housing the Blind Pig Saloon on the ground floor and a boxing ring upstairs where the likes of Jack Dempsey and Jack Sharkey would train. Other key buildings from the late 1800s include the Hotel Temecula, Machado Store, the Old Town Jail, and the Temecula Mercantile building. With the continuing arrival of settlers also came an increasing concern about the Indians and a desire for their precious river oriented land. In 1876 a San Diego County Sheriffs posse came without warning and physically moved the Indians to a site not far from the present location of the Pechanga Indian Reservation. Old Town Specific Plan I-] The coming of the railroad to Temecula in 1882 marked another boom period in the City's history. Granite quarries became productive in the late 1880's and lasted until 1915. Thousands of tons of cut granite were shipped from Temecula to form the front steps of the Riverside County courthouse, curbstones on Market Street in San Francisco, cemetery monuments, and hitching posts. Some of these curbs are still present in Temecula in front of the old Machado Storefung Branch Saloon building, around the corner from the Bank, as well as in front of the Temecula Hotel. The largest piece (15 tons) is in Sam Hicks Monument Park, on which are inscribed the names of the notable visitors to the Temecula Valley. These times brought prosperity to Temecula and the town grew steadily. Some of the town's more notable buildings were constructed during these times: the first school in 1890; Temecula Mercantile (Burnham Store) in 1902; First National Bank in 1912; and the Palomar Hotel in 1928, to mention a few. St. Catherine's Catholic Church was built in 1917 and was the first church building in Temecula. It continued to function as a church until 1980, when a new church was built to accommodate the growing congregation. Today, the old church has become the Chapel of Memories and has been relocated to Sam Hicks Monument Park Today, Old Town Temecula is but a part, albeit an important part, of this larger community. New development surrounds the historic town site and while many of its historic structures have been tom down or moved, others still remain as a reminder of what Temecula was, and more importantly, as an inspiration for what it can be in the future. The approval of the Old Town Temecula Historic Preservation District by the Riverside Board of Supervisors in October 1979 marked the first recognition that Old Town Temecula truly is a unique place with a historic character worth preserving and enhancing. Since that initial recognition, other steps have also been taken to help plan Old Town's future and preserve its historic buildings and character. The Temecula Community Plan Task Force (comprised of members from the Old Town Temecula Museum Historical Committee, Old Town Temecula Merchants Association, Temecula Town Association, and Temecula Valley Chamber of Commerce) prepared and submitted a plan for Old Town's revitalization in October 1988. While the plan was a "grass roots" effort, it did provide a valuable perspective into the existing concerns and potential solutions facing future growth and development in Old Town Temecula. The Committee's stated purpose of the plan was "... to encourage and speed the development and refurbishment of Downtown Temecula as a commercial and tourist center." However, since the plan lacked any official status, implementation of the plan's recommendations was primarily the responsibility of the Committee's member organizations which had no authority and few funds to carry out the majority of identified programs. The committee's report did, however, lay important ground work for future actions by providing a comprehensive assessment of issues facing Old Town at that time. Old Town Specific Plan 1-2 With the preparation of Temecula's General Plan which began in early 1992, a renewed focus on the issues facing Old Town were established. Throughout the various elements of the General Plan (including Land Use, Circulation, Open Space, and Community Design) needs have been identified to preserve and revitalize Old Town. The primary policy recommendation that emerged from the General Plan program was the need to prepare a specific plan for Old Town. Acting on this recommendation, the Temecula City Council authorized preparation of the Old Town Temecula Specific Plan (OTSP) to provide a master plan for the Old Town area. The Old Town Specific Plan was prepared in 1992 and 1993 with the assistance of Urban Design Studio and the council -appointed Old Town Steering Committee. The Steering Committee members represented a wide -range of local business and resident interests. The community is indebted to the following individuals for their participation in this process: Helga Berger, Susan Bridges, Carlene Danielsen, Linda Fahey, Christina Grina, Bill Harker, Lary Markham, Peg Moore, La Verne Parker, Bonnie Reed, and Steve Sanders. The Old Town Specific Plan was approved by the City Council on February 8, 1994. The purpose of the Plan is to provide a comprehensive plan for land use, development regulations, design guidelines, vehicular circulation, parking, development incentives and other related actions aimed at implementing the goals and objectives set forth in the Plan. This document superseded all previous plans, ordinances, and similar documents related to properties within the Specific Plan area. The boundary of the Old Town Specific Plan is shown in Exhibit I-1. B. AUTHORITY FOR THE PLAN California Government Code Sections 65450 through 65457 provide the necessary authorization for the City of Temecula to prepare and adopt this Specific Plan. The Old Town Specific Plan is a regulatory plan which will serve as zoning law for properties within the boundaries of the Plan as depicted in Exhibit I-1. All proposed development plans or agreements, tract or parcel maps, and any other development approvals must be consistent with this Specific Plan and with the General Plan. This includes the identification of the Old Town area as a Village Center under the General Plan. The Specific Plan may be amended to further the systematic implementation of the General Plan. Old Town Specific Plan I - 3 Old Town Temecula Specific Plan Exhibit 1-1 Study Map Area TA 0 i Fo r Q 400 0 400 800 Feel r.plsVice9lanvlev.'PM�bldlam_7_sWM_ereaspr C. ORGANIZATION OF THE SPECIFIC PLAN An abstract of the general contents of the Plan follows, arranged in order of appearance. 1. Introduction - The introduction provides a short history and broad overview of the Plan. 2. Goals, Policies and Objectives. Appropriate goals, objectives, and policies are outlined in this section. They are the reference points by which all provisions of the Plan should relate to. 3. Land Use Plan and Development Standards - The Land Use Plan section describes the major concepts that make up the essence of the Plan. These include the geographic division into land use districts and the purpose of each one. It covers the permitted land uses, general provisions, site development standards, and sign controls. This section also contains regulations for special uses and activities such as sidewalk cafes, mixed use projects, vending carts, and bed and breakfast establishments. 4. Design Guidelines - The Design Guidelines section contains two types of design provisions. The first type is design guidelines which describe the architectural and siting provisions for private development. The second type is the provisions for the public streetscapes. 5. Old Town Historic Preservation District Ordinance. This section contains the Old Town Historic Preservation District Ordinance, the Old Town Historic Register, and the Old Town Local Review Board. Old Town Specific Plan 1 5 II. GOALS, OBJECTIVES, AND POLICIES CONTENTS: A. Introduction Page 11-1 B. Overall Goal Page II-1 C. Goals, Objectives, and Policies 1. Community Design Page II-2 2. Land Use/Economics Page II-4 3. Circulation/Parking Page II-5 4. Murrieta Creek Page 11-7 D. Infrastructure Plans Page II-8 A. INTRODUCTION The purpose of this Section is to articulate the community's ideas regarding the goals and objectives for the Old Town Specific Plan. Goals Goals are broad statements of purpose that define the community's and local government's hope for the future. They are general in nature and do not indicate when and how these goals are to be accomplished. Objectives Objectives are statements of intent that generally guide future decisions in specific topic areas. Policies Policies are more specific statements of intent to deal with particular topics in a certain fashion. They begin to define the approach to achieve the Plan goals and objectives, and are the first step in the development of a solution and form the basis of development standards and zoning regulations. B. OVERALL GOAL The overall goal for the Old Town Specific Plan was developed by the Old Town Steering Committee in 1992, supported by the Planning Commission, and approved by the City Council. The overall goal is what the community wants Old Town Temecula to become and provides the overall direction for this area. The overall goal for Old Town is: To create a dynamic Old Town commercial and residential core that is attractive and of high quality, respectful of its historic buildings and unifying design theme and providing an economically viable setting for a mixture of local and tourist commercial uses, administrative/professional and residential uses with safe, efficient circulation and access. Old Town Specific Plan It- I C. GOALS, OBJECTIVES, AND POLICIES In an effort to further define and prioritize this overall goal statement, the following Community Design, Land Use/Economic, Circulation/Parking, and Murrieta Creek goals, objectives, and policies are provided. 1. COMMUNITY DESIGN Goal To create a high quality and distinct "Western" image and a functional, vibrant and aesthetically pleasing Old Town for Temecula. Objectives • Provide easy to follow rules and regulations for new development to complement and promote the "Old West" vision for the Old Town area. ■ Revitalize existing building facades which do not add to the established architectural theme. ■ Promote a clearly pedestrian atmosphere in the area bounded by First Street on the south, Sixth Street on the north, Murrieta Creek on the west, and Mercedes Avenue on the east. ■ Protect the grid street pattern in Old Town, specifically between First and Sixth Streets. ■ Provide for the elimination or screening of visually objectionable views such as outdoor storage, utility cabinets, trash bins, roof -mounted equipment, blank side walls, recycling equipment, and loading areas through the implementation of design guidelines. • Promote complimentary "native" landscape treatments throughout the Old Town area to enhance storefronts and the desired architectural theme. ■ Enhance and promote the creation of enjoyable public spaces throughout Old Town through the use of street furniture, landscaping, public an, building design, and pedestrian orientation. • Design vehicular entry points which provide a sense of arrival to Old Town; initiate the Old Town streetscape theme. Provide signs to guide tourists to important destinations. Old Town Specific Plan !! - L ■ Soften the urban character of streets, parking areas, pedestrian spaces, and walkways with wooden plank sidewalks. Streets should also appear less urban (asphalt). Policies ■ Develop consistent streetscape and architectural palettes for the Old Town that help create a high quality historic image. ■ Require compliance with the Design Guidelines for the Old Town Specific Plan in new development or the expansion or redevelopment of existing development. ■ Discourage significant lot consolidations and very large single -user development greater than 50,000 square feet in Old Town and encourage smaller storefront, pedestrian oriented design. ■ Utilize landscape materials that are clean, safe, wind resistant, drought tolerant, and native species whenever possible. Informal landscape forms should be utilized on the major thoroughfares to emphasize the "unplanned" appearance of a rustic early California settlement. ■ Consider developing incentives to provide certain "extra" "Old West" or equestrian design amenities within their projects. Of particular interest are covered arcades or porches, wood plank sidewalks, old west artifacts (water troughs, wind vanes, hitching posts), benches, and signs painted on walls. ■ Establish a program to expedite removal of existing signs that do not conform to the regulations or design theme of this Specific Plan. ■ Consider economic incentives for owners who wish to architecturally rehabilitate, refurbish, Old Town storefronts in accordance with the design guidelines of this Specific Plan. • Establish Main Street as the "heart" of the community by creating a pedestrian oriented, nostalgic downtown of old California. ■ Develop a new sign regulation ordinance for Old Town which specifically addresses the types of signs that were available to shopkeepers in the late 1800's to early 1900's. • Develop a specialized regulation for right-of-way encroachment by "thematic" architectural features such as canopies, porches, arcades, and other projections. • Encourage graffiti resistant materials whenever feasible. Old Town Specific Plan H - ■ Eliminate overhead utility lines throughout Old Town if feasible. ■ Consider purchasing existing billboard signs if it is determined to be economically feasible. 2. LAND USE/ECONOMIC Goal Develop "Old Town" to provide a variety of local and tourist oriented retail services, office, cultural/civic, and residential opportunities. Objectives ■ Maximize the economic base of Old Town through the definition of land use districts to insure expansion of a variety of land uses desirable to the districts including, specialty retail, tourist and local serving retail uses, specialty retail/service, office uses, and residential uses (single and multi -family). • Ensure the gradual upgrade of underutilized parcels functioning at less than their market potential. • Discourage further freestanding residential uses in the Old Town core. Encourage mixed use as it might have occurred in the late 1800's or early 1900's. • Through economic development activities and incentives, focus on attracting new commercial uses and retaining existing development which add to the "thematic" ambience of Old Town such as a blacksmith, wine tasting facility, saloon, barber, ice cream parlors, candy store, general store, and feed/tack store. Policies ■ Establish regulations that promote pedestrian oriented plazas and courtyards; and that encourage active retail commercial uses in the core of Old Town. ■ Prepare development regulations and design guidelines that clarify the expectations of the City in terms of the quality of new development in the Old Town area. ■ Establish regulations that assure compatibility of existing and new commercial uses within established land use districts while employing specific, well designed buffers from adjacent exclusively residential developments. Town Specific Plan 11 - 4 • Establish development incentives to encourage the introduction of a thematic western town specialty shopping development. ■ Discourage new land uses in Old Town such as automotive sales, service and repair uses, fast food drive-thru's, a traditional shopping center, mini marts, and large grocery establishments. ■ Discourage major lot consolidation and development which encourages large single -user tenants on lots greater than 50,000 square feet in Old Town. ■ Establish assistance programs to aid property and businesses owners with property improvements that further the implementation of the Specific Plan. • Establish height limit zones in Old Town which relate to the scale of the streetscape, historic building construction techniques, and land use. • Establish a sensitive non conforming use provision in the Specific Plan which provides incentives for early compliance. ■ Establish regulations which may waive all or portions of a parking requirement for a desirable land use. ■ Establish public restrooms in the area. • Include single and multiple family uses, and hotel or bed and breakfast type uses in Old Town. • Encourage office uses in Old Town that occupy second floor or side street building space. 3. CIRCULATION/PARKING Goals Facilitate efficient and safe movement of people and vehicles within and through Old Town and provide safe, adequate, and accessible parking in Old Town. Obiectives • Provide additional vehicular creek crossings in Old Town, particularly at Sixth and First Streets. • Create a pedestrian oriented environment in the Old Town core and along Murrieta Creek. Old Town Specific Plan If - • Provide easily identified, adequate and accessible parking with organized and consistent circulation systems throughout the Old Town area. ■ Redirect local through traffic vehicular trips away from Old Town Front Street onto the future western bypass road. Policies: • Require pedestrian -oriented street furniture at pedestrian gathering points and along Murrieta Creek through private development improvements. ■ Provide adequate parking identification signs for all public parking areas not directly visible from Old Town Front or Main Streets. ■ Consider alternative parking and streetscape design for Old Town Front and Main Streets to reflect a traditional small community downtown. Establish parking standards for the designated land use districts which adequately reflect the individual character and uses proposed for those districts. Consider parking waivers or reductions for highly desirable uses. ■ Utilize landscape and hardscape design features to soften parking and pedestrian areas for new and existing development and public parking lots. • Encourage the efficient use of alley ways and rear building entrances to minimize the necessity for access off primary and secondary streets. • Limit existing and future vehicular access onto Old Town Front Street, but especially in the Old Town core. ■ Delineate desirable vacant properties that could be used for public parking lots. • Provide parking areas at the north and south end of the district with horse drawn wagon/trolley serving Old Town during high traffic use periods. ■ Provide additional pedestrian crossings over Murrieta Creek. ■ Locate parking and other public uses in areas behind, or off of, Old Town Front and Main Streets, or along Murrieta Creek (proper buffering required). ■ Consider designating truck routes and weight limits for streets in Old Town. Old Town Specific Plan H - 6 4. MURRIETA CREEK Goal To create technically sound and safe creek "improvements" which will reduce the threat of flooding, in Old Town and add to the vision for Old Town. Objectives ■ Provide improvements which will aesthetically be compatible with the vision for Old Town. ■ Capitalize on the improvements to add desirable pedestrian/equestrian trails along the creek's edge or in the creek bottom. • Coordinate any plans for the creek with other city adopted master plans. Policies ■ Whenever possible, avoid vertical concrete channel walls and use Old Town appropriate themed materials and colors. ■ Ensure that the "improved" creek contains living plant materials which are indigenous to a watershed area. ■ Encourage the implementation of measures that delay or retain runoff onsite throughout the Valley to reduce flood flows in Murrieta Creek. • Discourage the continued narrowing of the floodway and channel for Murrieta Creek. • Provide amenities such as trails, plazas, and seating areas along Murrieta Creek as part of the normal development review process. Old Town Specific Plan If - D. INFRASTRUCTURE PLANS This section of the Specific Plan contains information required by State Law on the infrastructure and utilities necessary to support development in this area. This information is intended to supplement the other standards and requirements identified in the Plan. 1. Road Network The ability of residents and visitors to effectively access the Old Town area is vital to the area's future success. The areawide road network is established by the City General Plan. Within the context of the General Plan, the Old Town Specific Plan further describes the circulation network within the Old Town district. The primary circulation route within the Old Town Specific Plan is Old Town Front Street. The secondary circulation routes are Mercedes Street/Moreno Road, Main Street, and the route of Pujol Street/Sixth Street/Felix Valdez Road. In this last example, the secondary route portion of Sixth Street is only that portion that links Pujol Street to Felix Valdez. Rancho California Road and Santiago Road/ First Street are perimeter roads and are addressed in the General Plan. All other roadways with the Old Town Specific Plan are considered to be local streets. The proposed road network for the Old Town Specific Plan is found in Exhibit 11-1. The typical configurations and rights -of -way for the streets within the Old Town Specific Plan are listed below. Old Town Front Street North of the south Moreno Rd Loop 4 travel lanes in 88 feet South of the south Moreno Rd Loop 2 travel lanes in 60 feet Mercedes Street 2 travel lanes in 60 feet Moreno Road 2 travel lanes in 88 feet Main Street 2 travel lanes in 60 feet Pujol Street/Sixth Street/Felix Valdez 2 travel lanes in 60 feet Local serving streets 2 travel lanes in 60 feet In most circumstances, the Old Town Specific Plan does not anticipate the installation of additional traffic signals within Old Town Temecula. The possible future exceptions to this are the intersections of Santiago Road and Pujol Street and Mercedes Street/Moreno Road and Old Town Front Street. These intersections may need to be signalized when warranted due to potential turning movement conflicts and future development west of the Old Town area. In all other cases, stop signs are the preferred method to control and prioritize vehicular traffic. Old Town Specific Plan II Old Town Temecula Specific Plan Exhibit II-1 Roadway Improvements and Build -Out Recommendations 2. Water System Water distribution services in the Old Town area are provided by Rancho California Water District (RCWD). Since the initial adoption, the City has worked with RCWD to provide adequate water service in Old Town. Based upon these system upgrades and the project development in Old Town Temecula, the current system should be adequate to meet future water needs. However, additional development west of Old Town requires changes to the current network to meet this currently unspecified need. The current backbone water system is shown in Exhibit U-2. In addition, there are reclaimed water lines that have the potential to serve portions of Old Town. These are located (detailed information not yet available). 3. Sewer System Wastewater collection service is provided by Eastern Municipal Water District EMWD). Over the last ten years, EMWD has made a number of improvements to the wastewater collection system to meet current and future needs. The upgrading and relocation of the First Street lift station has corrected most of the problems. Additional new development west of Old Town may require some changes to the current network to meet future needs. The current wastewater collection system is shown in Exhibit U-3. 4. Drainage System The regional drainage system component in the Old Town area is the channel of Murrieta Creek, a primary tributary to the Santa Margarita River. In this area, the historic drainage pattern has always been into Murrieta Creek. All current and future drainage from this area is expected to continue to flow into the Murrieta Creek. The on -street drain inlets collect storm water flows and transport it directly to the Creek. The majority of these drainage structures range from to in size. 5. Solid Waste The City of Temecula currently contracts for refuse collection and recycling services. Through this contract, the Old Town area currently receives solid waste disposal services. Refuse collected locally is currently taken to the El Sobrante and Badlands Landfills for disposal. Town Specific Plan /l - Old Town Temecula Specific Plan Exhibit II-2 Proposed Water Improvements Old Town Temecula Specific Plan Exhibit II-3 Proposed Sewer and Reclaimed Water Improvements 6. Electricity Electrical service is currently provided by Southern California Edison. There is presently an electrical distribution network in place in Old Town. Adequate regional electrical power supply can be provided to the Old Town area as it redevelops. The City requires that all new lines (up to 34KV) be underground. 7. Natural Gas Natural gas service is currently provided by the Southern California Gas Company (SCG). There is presently a natural gas distribution network in place in Old Town. SCG has indicated that it can continue to provide natural gas to the Old Town area. 8. Telephone Service Local telephone service is currently provided by Verizon. There is presently a telephone network in place in the Old Town area. This existing network will continue to provide all necessary wire -based telephone services. In addition, there is an existing network of cellular telephone facilities in and around Temecula that also provide service to Old Town. 9. Parks and Recreation Facilities There is currently one park facility within the Old Town Specific Plan. Sam Hicks Monument Park, at the corner of and Moreno and Mercedes Streets, is adjacent to the Temecula Museum. The facilities include a tot lot, picnic tables, and a gazebo. In addition to this, the Boys and Girls Club has a facility just outside the Plan area at the corner of First and Pujol Streets. A proposed recreation facility/park adjacent to the Boys and Girls Club is currently under design. It is anticipated to include an enhanced gymnasium and additional meeting and activity areas. The provision of a future "town square" is also being considered. While the exact location and facilities have not been determined, the facility would provide a public gathering space that would be integrated into the current Specific Plan. Old Town Specific Plan 11-13 III. LAND USE AND DEVELOPMENT STANDARDS CONTENTS: A. Introduction B. Establishment of Land Use Districts and Map C. Land Use Regulations D. Site Development Standards E. Relationship of the Specific Plan to Other Codes F. Supplemental and Special Use Standards G. Sign Regulations H. General Provisions and Regulations A. INTRODUCTION Page III-1 Page III-1 Page III-4 Page III-11 Page III-13 Page III-14 Page III-24 Page III-29 The Old Town Specific Plan area is comprised of eight land use districts. Each district establishes permitted land uses and development standards which are intended to implement the goals, policies and objectives of this Specific Plan, as contained in Section H, and the City's General Plan. These land use regulations and development standards constitute the primary zoning provisions for the Old Town Specific Plan area. B. ESTABLISHMENT OF LAND USE DISTRICTS AND MAP 1. Specific Plan Land Use Districts. The following Land Use Districts (Planning Areas) are hereby established within the Old Town Specific Plan area: ❑ Highway Tourist Commercial (HT) District ❑ Old Town Civic (OTC) District ❑ Tourist Retail Core (TRC) District ❑ Community Commercial (CC) District ❑ Medium Density Residential (MDR) District ❑ High Density Residential (HDR) District ❑ Open Space (OS) District The Specific Plan Land Use Map (Exhibit III-1) depicts the boundaries of each land use district within the Specific Plan area. Old Town Specific Plan ttt - 1 Old Town Temecula Specific Plan Exhibit III-1 Proposed Land Use Districts Map 2. Descriptions of Land Use Districts. a. Highway Tourist Commercial (HT). The Highway Tourist Commercial designation is intended to provide for those uses that are located adjacent to major transportation routes and may be oriented to the needs of tourists and recreation enthusiasts. Highway Tourist Commercial development should be located at appropriate locations, and developed as clusters of commercial development rather than as shallow commercial frontage along major streets. Typical uses may include tourist accommodations and lodging facilities, automobile service stations, restaurants, convenience stores, and gift shops. The facilities should be well landscaped and provide an attractive visual image. b. Old Town Civic (OTC). The Old Town Civic designation is intended to provide for public and quasi -public uses such as parks, city offices, police/fire stations, public day care centers, senior citizen centers, community centers, museums, and similar facilities. C. Tourist Retail Core (TRC). The Tourist Retail Core designation is intended to provide for those uses that support and compliment the pedestrian -oriented core. The designation typically includes small scale, boutique -type retail businesses. Service and office uses are generally allowed on either the second floor or on non -Old Town Front and non -Main Street parcels. Residential uses are allowed as ancillary uses when located above the ground floor or in the rear of the lot. Tourist retail uses are generally small businesses occupying no more than 5,000 square feet. Typical uses may include gift shops, restaurants, small hotels, bed and breakfasts, mixed use, antique shops, small hardware/decorator stores, museums, art galleries, flower shops, jewelry shops, clothing shops, custom furniture items, and similar retail uses. d. Community Commercial (CC). The Community Commercial designation includes retail, professional office, and service -oriented businesses that serve the entire community. Community commercial areas typically include neighborhood commercial uses, as well as, larger retail uses including department stores, theaters, restaurants, professional and medical offices, and specialty retail stores. e. Medium Density Residential (MDR). The Medium Density Residential designation (7 to 12 dwelling units per acre) is intended to provide for the development of attached and detached residential development. Typical housing types may include single family detached, single family zero lot line, patio homes, duplexes, townhouses, condominiums, garden apartments and conventional apartments. Old Town Specific Plan 111 - s f. Hi¢h Density Residential (HDR). The High Density Residential designation (13 to 20 dwelling units per acre) is intended to provide for the development of attached residential developments. Typical housing types may include townhouses, condominiums, garden apartments, and conventional apartments. g. Olen Space (OS). The Open Space designation includes both public and private areas of permanent open space along the floodways of Murrieta Creek. This designation is intended to include lands acquired by exaction, easement, fee, and other methods sanctioned by State and Federal law for parkland, for preservation of biological and cultural resources, and for protecting public safety from flood hazards. 3. Land Use District Boundaries Where boundaries of the land use districts appear to follow streets, the boundary shall follow the centerlines of said streets. Where boundaries appear to follow existing property lines, they shall follow said property lines and shall not bisect portions of existing lots of record which are in effect at the time of adoption of this Specific Plan. The boundaries with the Open Space Land Use District along the channel of Murrieta Creek may bisect adjacent parcels. C. LAND USE REGULATIONS This section includes a matrix (Table III-1) which lists the land uses and indicates whether or not each use is permitted (P), conditionally permitted (C), or prohibited (-) in each of the land use districts within the Specific Plan area. When exceptions have been established, they are so noted at the end of the table. Permitted uses for the Medium Density Residential (MDR), High Density Residential (HDR), and Open Space (OS) planning areas shall be the same as identified in the Development Code for the Medium Density Residential, High Density Residential and Open Space/Conservation zones, respectively, as periodically amended. Old Town Specific Plan III - 4 Lx%✓'$"w8 �)j� 7 .„�. Yn S� t.� f z SH '10 Y R _ Ad, y A W yW" q k.. E i €L' �_ IISxT OiTSF3S vas . - `a'201- A Adult entertainment businesses Animal hospital Antique sales P P Appliance sales and repair P Art, photographic studios, galleries, school supplies C P P Athletic, aerobic and health gyms and weight reducing clinics P P Auction houses P C Auditoriums/concert/convention halls C P P Auto service station P Auto Related (including motorcycles): Sales or rental (with ancillary repair facilities in a totally enclosed area) Service and repair Parts and supplies (no on -site repair) Specialty retail C C P P P P P Awnings and canvas goods, sales and service (within an enclosed building) P B Bake (retail only) P P P Banks, savings and loans, financial institutions (new uses in excess of 1,250 sq. 8. must provide sufficient off- street parking.) P P P Barber shop P3 P Bar and cocktail lounge (incidental food service only) C C C Beauty colleges Beaut shop - P P Bed and breakfast - P Bicycle rentals P - Pi P Bicycle sales P - P P Billiard/pool centers - - P Blood bank - - P Blue rintand photocopy services - - P P Bookgift, stationary, newspaper sales - - P P Bowling alley - - Bridal shops/tuxedo and costume rentals - - P P Business colleges and professional schools P Business and office services P P P Butcher shop P P C Cabinet making P Old Town Specific Plan III - �) AIM �� LIS§l OF VISES �.wei ..... /%..v»,. caYaF�S. Camera and film sales (including limited filmprocessing) P - TRC PI P Candy and confectioneries P P Car wash — full service P Car wash — self service P C Carpet and floor covering P Catalog sales p2P Catering services P P Check cashing services P I P, P China and glassware sales - p3F Clothing and apparel sales - F Clubs, lodges and meeting halls - P P Coin and stamp dealers - - P P Communications and microwave installations 70-mmunity care facilities - - Computers and video equipment - - P F Convalescent homes - - Convenience market (with or without the sale of alcoholic beverages) P - P3 P Cosmetolo ist - P P Costume rentals P Cultural/artist exhibits, and art sales: C P D Dance halls and discotheques C C C Dance schools and studios - P P Day care centers P P P Delicatessens and sandwich shops P P P Department stores P P Dispensing opticians P P Discount/club membership stores Drapery and curtain sales P Drug stores and pharmacies P P P Dry cleaning and laundry C P E Educational and tutorial centers F Electric equipment and supplies (within an enclosed building) p Equipment sales and rental F Farmers market C C Feed, grain and tack sales - Finance and insurance offices P P P Fishing supply stores F P Floor covering sales P Town Specific Plan III - 6 • i�jS ,r a Jj YSP�j`' 4 �'$ ;��'°y�'��y go _SQFL7E5i� ".. Florist sho s a COUT PP, P Fortune tellin , s iritualism or similar activi P P Funeral parlors Furniture and home fumishin s P, P Fumiture and upholstery repair and supplies Furriers P P G Game Arcades C C Garden equipment, supply, sales and service - Gift, novelty, souvenirs P P P Governmental offices P P P P Grocery store and market (retail only) P P Grocery store, wholesale Gun sales P P H Hardware stores P P Health food stores P P P Hearin aids P —Robby and craft shops P P Home improvement centers Hospitals P Hospital equipment sales and rental agencies - Hotels/motels P P P I Ice cream and yogurt shops/soda fountains P P P Interior decorating shops P P Instant printing and photo copying services 132 P Insurance agents, brokers and services P 13 P J Janitorial supplies P Jewelry sales P P K Kitchen equipment sales P L Laboratories, medical and dental P Laundromats P Laundry service C P Ti—ghting fixture shops P Liquor stores C - C C —Eithographic services P - P P Locksmith stores - P P Luggage and leather Foods P - P P Lumber yard - - - Old Town Specific Plan III - [y : '..-.Y t M~ Machine tools and sales Mail order businesses p2P Mail services, postal boxes for rent p2P Marine sales/service Medical equipment sales Membership clubs and organizations C Message centers p2P Mini -storage Mobil home sales Mortuaries Motorcycle sales and service Movie theaters P - P P Music, dance and exercise stores/studios P P N Newspaper offices P Newsstand P P Night Clubs (with live entertainment) C - C C Nurseries and garden supply stores P Nursing homes O Office, business machine sales p2P Orthopedic devices sales P P P Paint, glass, and wallpaper sales P Paper product sales P P Parkin lots/garages C C C P Parcel shipping/copy/fax center 1> P Pawnshop, - Perfornfing arts theater P P Petsho s P P Phonographic/CD/tape/record store P P Photo -developing stores P - P P Photographic studios 2,3 P Picture framing shops - P P Pin ball and electronic game arcades C - C C -Flumbing and equipment supplies Private schools Professional and medical offices P P Q Reserved R Radio and TV sales P P Town Specific Plan III - 8 ABED �a Radio and TV broadcasting CZ P Real estate office PP2,3P Recording studios P P Recreational vehicle sales Recycling facilities - - Religious institution - - C C Religious materials sales - - P P Residential, attached and detached - - C Residential, single family detached (East of Merced Street only) P Restaurants: Without a full bar, entertainment, or dancing (includes the incidental serving of beer and wine only) With entertainment, dancing, and/or serving beer, wine and distilled spirits P Pl P C C C Restaurant, fast food without a drive-thru P P P Restaurant, fast food with a drive-thru C Rooming and boarding houses - - P S Second hand/thrift stores - - P P Security and commodities brokerage firms - P Sewing supplies and fabrics - - P P Senior citizen housing - - Shoe sales and repair P Shoeshine stand - - P Sign shops - - P Skating rinks - Sporting goods stores - - P P Sports and recreational facilities - P P Stationery stores P P Swimming pool ands a, sales and supplies T Tailor shops P Tannin salons P P Taxidermists P P Telephone and communications store P P Theaters P P P Ticket agency/entertainment P P Tile sales P Tobacco sho s P P To sales P P Travel agencies P P Old Town Specific Plan ��1 y Rol vQ, N�Jib� ABBE �, ��T3ir+YiM 1:3..iN ¥q 3'rn -595 3 kFlVC. I IST U ES k fl 4�?G TRvnao Trophies and awards P Truck sales/rentals Typewriter and business machine sales and service P U Reserved V Vending machine sales and service Veterinarian Video sales and rentals F P W Watch and clock repair P, P -Wedding chapels P I - - Wine tasting facility P X Reserved Y Reserved Z Reserved P Use is permitted by right in this planning area C Use is permitted with a Conditional Use Permit in this planning area - Use is not Permitted in this planning area t Use is limited to under 5,000 gross square feet. 2 Use is limited to either the second floor (or higher) or to non -Old Town Front and non - Main Street parcels. 3 Use is limited to under 2,500 gross square feet. Subject to the standards contained in Chapter 17.40 of the Temecula Municipal Code. Old Town Specific Plan III -10 D. SITE DEVELOPMENT STANDARDS This section contains the development standards tables for the Specific Plan. Table III- 2 contains the site and development standards for the Highway Tourist Commercial (HT), Community Commercial (CC), and Tourist Retail Core (TRC) Land Use Districts. Table III-3 contains the site and development standards for the Medium Density Residential (MDR), High Density Residential (HDR), Old Town Civic (OTC), and the Open Space (OS) Land Use Districts. t wY p ffis W� t4 D ® MZ M Lot Size and Densit Minimum Lot Area (square feet) ` 10,000 3,500 8,000 Maximum Dwelling Units per Acre 0 12 z 0 Lot Dimensions Minimum Width at Required Front Setback Area 60 feet 25 feet 60 feet Minimum Corner Lot Width 100 feet 50 feet 60 feet Minimum Depth 80 feet 80 feet 80 feet Minimum Frontage at Front Property Line 80 feet 25 feet 60 feet Setbacks Minimum Front Yard 25 feet 0 ° 0 Maximum Front Yard N/A 10 feet 3 20 feet Minimum Comer Side Yard 10 feet 0 0 Minimum Interior Side Yard 0 0 0 Minimum Rear Yard 10 feet 0 10 feet Minimum Accessory Building to Interior Side Yard 10 feet 10 feet 10 feet Minimum Building Separation 0 0 0 Other Maximum Stories/Height 3/50 feet 3/50 feet 2/30 feet Maximum Lot Coverage 70% 100% 70% Minimum Required Landscaped Open Space 20% 0% 5 10% Maximum Fence, Wall or Hedge Height 6 feet 6 feet 6 feet Minimum Private Open Space/Unit N/A 150 sq. ft. N/A This requirement does not apply to existing legal lots. z On the upper floors and in the rear lot areas only. 3. Building shall be setback exactly ten feet if no covered arcade or porch is provided at the front of the building. ° If a continuous porch or arcade (minimum 8 feet widey is provided at back of sidewalk (public right-of-way) 5 Limited accent landscaping should be provided whenever possible. Old Town Specific Plan 111 - 11 L' �'y'''' }d-'s r� RSIDTs I�RL I1BIIG�L� C" - & 11DB o ._. S :.:...t .x .�., .,.c.;. :.F ,QIIZZ °.� a ..,.w_ U T m_ tea... _. Lot Area and Density Minimum Lot Area (square feet.)' 1 7,000 7,000 None None Maximum Dwelling Units per Acre 1 12 20 N/A N/A Lot Dimensions Minimum Width at Required Front 40 feet 30 feet 0 0 Setback Area Minimum Average Lot Width 1 50 feet 50 feet 0 0 Setbacks Minimum Front Yard 20 feet 20 feet 10 feet 10 feet Minimum Corner Side Yard 15 feet 15 feet 0 0 Minimum Interior Side Yard 15 feet 2 15 feee 0 0 Minimum Rear Yard 20 feet 20 feet 10 feet 10 feet Minimum Accessory Building to Interior 5 feet 5 feet 5 feet 5 feet Side Yard Minimum Separations Between Buildings One Story 10 feet 10 feet 20 feet 0 Two Story 15 feet 15 feet N/A N/A Three Story 20 feet 20 feet N/A N/A Other Requirements Maximum Height 35 feet 50 feet 18 feet 18 feet Maximum Lot Coverage 35% 30% 50% 5% Minimum Required Landscaped Open 25% 30% 10% 80% Space Minimum Private Open Space/Unit 200 sq.ft. 150 sq.ft. N/A N/A 1' This requirement does not apply to existing legal lots. 2 The sum of both side yard setbacks. Distance between structures not less than 10 feet. 3 Higher maximum densities may be allowed by the City Council pursuant to the Village Center provisions described in the General Plan. Old Town Specific Plan III - 12 E. RELATIONSHIP TO OTHER CODES 1. Development Code Many provisions of the Development Code (Municipal Code) will continue to apply in the Old Town Specific Plan when they do not conflict, undermine, or counteract the provisions of the Specific Plan. For purposes of consistency and clarity, special regulations or standards that are not addressed in this Specific Plan will be used by the Director of Planning to guide and control development in the Old Town area. Examples of Development Code provisions that apply to development with Old Town include, but are not limited to, the following: ■ The Administration of Zoning — Chapter 17.03, as amended ■ Permits — Chapter 17.04, as amended ■ Development Plans — Chapter 17.05, as amended ■ The Supplemental Development Standards - Chapter 17.10, as amended ■ Off -Street Parking and Loading — Chapter 17.24, as amended • The Water Efficient Landscape Design - Chapter 17.32, as amended ■ The Telecommunications Facility and Antennas - Chapter 17.40, as amended 2. Conflicts Between the Specific Plan and Development Code Where there is a conflict between the regulations of the Development Code and this Specific Plan, the regulations provided herein shall prevail. Where direction is not provided in this Specific Plan, the provisions of the Development Code shall prevail. The development standards contained herein are minimum requirements. This provision shall not be used to permit uses, architectural styles or procedures not specifically authorized by this Specific Plan or the Development Code. 3. Other Applicable Codes and Codes All construction and development within the Specific Plan area shall comply with applicable provisions of the California Building and Fire Codes and the various related mechanical, electrical, plumbing codes, and the subdivision ordinance, as adopted by the City Council. In cases of a conflict between the provisions of any such code and this Specific Plan, the provision which most serves to protect health, safety, and welfare of the community shall apply and the Director of Planning shall resolve the conflict utilizing the Goals and Objectives of this Specific Plan. Old Town Specific Plan 111- 13 4. Other Special Regulations and Standards Examples of other codes and regulations that specifically apply to development within Old Town include, but are not limited to, the following: ■ Adult Business Ordinance ■ Mount Palomar Lighting Ordinance ■ Subdivision Ordinance F. SUPPLEMENTAL AND SPECIAL USE STANDARDS The following supplemental development standards apply to development within the Old Town Specific Plan. The supplemental and special use standards include sidewalk cafes, vending carts, mixed use development, and bed and breakfast facilities, as well as other general supplemental requirements. 1. Sidewalk Cafes a. Intent. Sidewalk cafes on public streets can enhance the pedestrian ambiance of Old Town and are encouraged. For the purposes of this section, a sidewalk cafe is defined as any group of tables and chairs, and related decorative and accessory devices, situated in the public sidewalk or along the private porches and arcades in connection with the consumption of food and beverage sold to the public from an adjoining indoor restaurant. b. Sidewalk Cafes Permitted. A sidewalk cafe may be permitted only in land use districts which allow indoor restaurants. A sidewalk cafe may be located on public sidewalks, private porches, courtyards and arcades immediately adjacent to and abutting the indoor restaurant which operates the cafe, provided that the area in which the sidewalk cafe is located extends no farther along the sidewalk's length than the actual sidewalk frontage of the operating indoor restaurant and all other applicable provisions of this section are fulfilled. C. Development Plan and Encroachment Permit Required. Sidewalk cafes may be permitted with the approval of an Administrative Development Plan, in conformity with the requirements of the Specific Plan, and with approval of an Encroachment Permit for areas located with the public right-of-way. Both of these permits may be denied, approved, or approved subject to conditions of approval. Old Town Specific Plan 111 -14 d. Requirements. Sidewalk cafes shall comply with the following requirements. i. An indoor restaurant may be permitted to operate only one sidewalk cafe and each sidewalk cafe shall be confined to a single location on the sidewalk. ii. A sidewalk cafe may be permitted only where the sidewalk or porch is wide enough to adequately accommodate both the usual pedestrian traffic in the area and the operation of the proposed cafe. There shall be a minimum 48" clear distance free of all obstructions, in order to allow adequate pedestrian movement. SIDEWALK' l CAFE , I iii All outdoor dining furniture in the public right-of-way, including tables, chairs, umbrellas, and planters, shall be movable. iv. Umbrellas must be secured with a minimum base of not less than 60 pounds. Outdoor heaters, amplified music, or speakers shall be reviewed at the time of application for a Development Plan. V. No signage shall be allowed at any outdoor cafe except for the name of the establishment on an awning or umbrella valance. vi. Sidewalk cafes do not require the provision of additional off-street parking. Old Town Specific Plan 111- L5 vii. If a physical barrier is required by the Department of Alcoholic Beverage Control to serve alcoholic beverages, the design and permanency of the barrier shall be approved by the Director. The physical barrier needs to conform with the design guidelines in Section IV of the Specific Plan. e. Conduct of Business and Hours of Operation. All sidewalk cafes shall comply with the following performance standards. i. A sidewalk cafe may serve only food and beverages prepared or stocked for sale at the adjoining indoor restaurant. ii. The outdoor preparation of food and busing facilities is prohibited at sidewalk cafes. iii. The presetting of tables with utensils, glasses, napkins, condiments, and the like is prohibited. All exterior surfaces within the cafe shall be easily cleanable and shall be kept clean at all times by the permittee. iv. Trash and refuse storage for the sidewalk cafe shall not be permitted within the outdoor dining area or on adjacent sidewalk areas and the permittee shall remove trash and litter as it accumulates. The permittee shall be responsible for maintaining the outdoor dining area, including the sidewalk surface and furniture and adjacent areas in a clean and safe condition. V. All furniture used in the operation of an outdoor cafe shall be removed from the sidewalk and stored indoors whenever the indoor restaurant is closed. vi. The City shall have the right to prohibit the operation of a sidewalk cafe at any time because of anticipated or actual problems or conflicts in the use of the sidewalk area. Such problems and conflicts may arise from, but are not limited to, scheduled festivals and similar events, parades, repairs to the street or sidewalk, or emergencies occurring in the area. To the extent possible, the permittee will be given prior written notice of any time period during which the operation of the sidewalk cafe will be prohibited by the City. f. Suspension or Revocation. The development plan and encroachment permit may be suspended or revoked, following notice to the permittee and a public hearing, upon a finding that one or more conditions of approval for the permit or the requirements of this section have been violated, or that the sidewalk cafe is being operated in a manner which Old Town Specific Plan 111 - 1b constitutes a nuisance, or that the operation of the sidewalk cafe unduly impedes or restricts the movement of pedestrians past the sidewalk cafe. 2. Vending Carts a. Purpose. Outdoor vending carts on private property promote public interest by contributing to an active pedestrian environment. However, reasonable regulation of outdoor vending carts is necessary to protect the public health, safety, and welfare. The purpose of this section is to set forth the conditions and requirements under which outdoor vendors may be permitted to operate on private property within the Specific Plan area. b. Vendor Permit Required. It shall be unlawful to sell, or offer for sale, any food, beverage or merchandise on any property within the Specific Plan area without first obtaining a Vendors Permit. Applications for a vendors permit shall include a description of the type of merchandise or food to be sold, a detailed description and photograph of the cart, and the approval of the owner of the site where the cart will be located. Vending Permits shall be reviewed and approved by the Director of Planning. The Director may apply any conditions necessary to protect the public health, safety, and welfare. C. Vending Cart Requirements. Vending carts shall comply with the following requirements. i. All vending carts shall be located only on privately owned, developed commercial property. There should be at least 150 square feet of useable or recognizable plaza or courtyard area for each vending cart. ii. The design and appearance of the vending cart shall be consistent with the carts in use between 1890 and 1920 in a character consistent with the Design Standards in Section IV of the Specific Plan. Colors used in conjunction with any vending carts located in the Old Town Specific Plan area shall be consistent with the Sherwin-Williams Preservation Palette. iii. Any umbrellas or accessory items used with vending carts shall be made from high quality canvas, utilize a monochromatic color scheme consistent with the Preservation Palette and have no written or graphic advertising. iv. No cart shall exceed 4 feet in width, 8 feet in length, and 8 feet in height. Old Town Specific Plan 111- 17 V. Vending carts should be free of all obstructions within a six-foot perimeter. vi. No advertising, except the posting of prices and product identification is permitted on any vending cart. The total allowable square footage for vendor cart signage shall not exceed four square feet on up to two opposing sides of the cart. d. Conduct of Business and Hours of Operation. All vending carts shall comply with the following performance standards. i. Operate only between 6 a.m. and 10 p.m. unless in conjunction with an approved special event. ii. All items for sale to shall be placed only in, on or under the vending cart. No additional merchandise preparation or sales table, crate, carton, rack, or any other device to increase the selling or display capacity of the cart shall be used unless it has been approved in writing by the Director of Planning. iii. Shall not solicit or conduct business with persons in motor vehicles. iv. Shall not operate any loud speaker, public address system, radio, sound amplifier, or similar device. V. All vending carts shall require an approved City of Temecula business license. vi. Vending carts selling food or beverages shall comply with the requirements of the Health Department and shall provide a trash receptacle for public use. vii. Shall clean up the area around where the vending cart had been. This includes removing and disposing of all trash or refuse. viii. The Director of Planning may require that the vending cart be removed from the location and stored out of public view when not in use. Old Town Specific Plan 111 - 1 d e. Denial, Suspension or Revocation of a Vending Permit. Any license may be denied, suspended, or revoked in accordance with the procedures in the Development Code for any of the following causes: i. Fraud or misrepresentation contained in the application for the license. ii. Fraud or misrepresentation made in the course of carrying on the business of vending. iii. Conduct of the licensed business in such manner as to create a public nuisance, or constitute a danger to the public health, safety, welfare, or morals or inconsistent with any conditions of approval. iii. Conduct of the business which is contrary to the provisions of this section or the conditions of approval. 3. Mixed Use Projects a. Purpose. The development of mixed use projects can present unique design issues not encountered in more conventional single use projects. The primary design issue relates to the need to successfully balance the requirements of commercial and residential uses. Typical examples include: a residential uses need for privacy and security, with the needs of commercial uses for access, visibility, parking and loading. For the purpose of this Specific Plan, mixed use projects are defined as developments which combine both commercial and residential uses or structures on a single lot, or as components of a single development in the Tourist Retail Core Planning District. The uses may be combined either horizontally or vertically on the site. This means with office and residential uses on upper floors with retail on the ground floor, or with commercial uses on the primary street and residences on the rear of the property. b. Conditional Use Permit Required. A mixed use project may only be established after first obtaining a Conditional Use Permit, as described in the Development Code, and in conformance with the requirements of this section. Old Town Specific Plan 111- 19 C. Limitations and Requirements. i. Mixed use projects that provide commercial space on the ground floor with residential units above (vertical mix) are encouraged though residential units behind commercial space (horizontal mix) are also allowed. ii. The number of residential dwelling units shall be based on the carrying capacity and design characteristics of each project. iii. Residential units may not occupy ground floor space fronting on Old Town Front or Main Streets. iv. Structures with heights greater than two stories shall set back on the street frontage sides for the third floor portion of the structure a minimum of 10 feet. V. All roof mounted equipment shall be screened in accordance with the requirements of the Development Code. Special consideration shall be given to the location and screening of noise generating equipment such as refrigeration units, air conditioning, and exhaust fans. Noise reducing screens and insulation may be required where such equipment has the potential to impact residential uses. vi. If onsite resident parking is provided, separate access drives and parking facilities should be provided for residential uses and commercial uses whenever possible. vii. Residential visitor parking and commercial parking may be located within the same location/facility. 4. Bed and Breakfast Establishments a. Purpose. The purpose of this Section is to provide standards for the development/operation of Bed and Breakfast establishments in Old Town. b. Requirements. All Bed and Breakfast Establishments in Old Town shall comply with the provisions contained in Chapter 17.10 of the Temecula Municipal Code, except for the minimum lot size and the requirement that the primary residence be the principle use of the site. li! " 20 Old Town Specific Plan C. Supplemental Requirements. In addition to the requirements stated above, the following shall also apply to Bed and Breakfast Establishments within the Specific Plan. i. Off-street parking shall be provided at a ratio of one space for each bedroom available for rent in addition to the parking required for the primary dwelling unit. This requirement can be satisfied through a centralized public parking lot if the owner participates in a parking assessment district and the facility is located nearby. ii. Signage shall be limited to one on -site sign not to exceed 6 square feet in area. The sign may be freestanding. iii. The exterior appearance of the structure housing the Bed and Breakfast should be either a Queen Anne (Victorian), Bungalow, or other residential style of building in existence in the early 1900's. 5. Minimum/Maximum Storefront Width For purposes of regulating the development of, and the division of existing storefronts, no storefront facing a public street shall be less than 20 feet wide or more than 100 feet wide. 6. Minimum Commercial/Office Building Subdivision Size For purposes of regulating the permanent subdivision of the interior (floor to ceiling walls) of an existing storefront on the first floor, no building in the Specific Plan area shall create interior retail space intended for business purposes less than 500 gross square feet. Exceptions to this requirement may include restrooms and storerooms. 7. Loading Facilities Loading and unloading facilities shall be visually screened from access streets and adjacent properties and constructed in a manner to reasonably contain and restrict emission of noises typically attributed to such function. When screening of loading and unloading facilities is physically not possible, the facilities shall be architecturally integrated into the overall design of the building. Old Town Specific Plan 111 - 11 8. Roof Mounted Equipment All roof mounted equipment shall be screened in accordance with the requirements of the Development Code. Special consideration shall be given to the location and screening of noise generating equipment such as refrigeration units, air conditioning, and exhaust fans. Noise reducing screens and insulation may be required where such equipment has the potential to impact residential uses. 9. Parking Requirements To minimize the amount of land committed to parking lots within the Old Town area, not all uses within the Specific Plan will be required to provide onsite parking. In most cases, the determination whether or not parking will be required will be based upon the Land Use District and the type of business. When onsite parking is required, the standards contained in Chapter 17.24 of the Temecula Municipal Code will normally be used to determine the number of required parking spaces. The following is a list of Land Use District parking requirements within the Old Town Specific Plan. ❑ Tourist Retail Core District — Onsite parking is required only for hotels, motels, and banks and financial institutions that are more than 1,250 square feet is size. (The parking requirement for bed and breakfast establishments are contained in Section M.F.4.c of this Specific Plan.) ❑ Community Commercial District — All uses shall provide onsite parking. ❑ Highway Tourist Commercial District — All uses shall provide onsite parking. ❑ Old Town Civic District — Onsite parking should be provided when practical. ❑ Medium Density Residential District — All uses shall provide onsite parking. ❑ High Density Residential District — All uses shall provide onsite parking. ❑ Open Space District — Onsite parking should be provided when practical and appropriate for the use. However, the Director may require assembly uses with high parking demands to provide additional off-street parking. In making this determination the Director can consider the size and location of the proposed use, the hours of operation, the availability of nearby on- and off-street parking resources, and its proximity to other assembly and restaurant uses. Old Town Specific Plan !II - 22 10. Parking Location Restricted Locating parking lots between the front property line and any building is prohibited in the Tourist Retail Core planning area. 11. Vehicle Access Restricted Direct vehicle access shall not be allowed from a private property onto Old Town Front Street and Main Street (between Old Town Front Street and Murrieta Creek). Vehicular access from a private parking lot to Old Town Front Street or Main Street shall be to a side street or public parking areas. The Director of Planning may allow exceptions only in case of landlocked properties. 12. Pujol Access Standards Due to the higher volume of anticipated traffic on Pujol Street, the following standards are provided: a. Driveways on adjacent properties shall be placed as far from one another as possible; b. Only one driveway per Pujol frontage shall be allowed, except for emergency access, on lots with under 200 feet of Pujol Street frontage; C. Additional driveways shall only be allowed on lots with over 200 feet of Pujol frontage; and d. Driveways on the same property shall be located at least 250 feet apart. 13. Exterior Lighting a. All exterior lighting fixtures shall comply with the requirements of the Mount Palomar Lighting District. b. All lighting of the building, landscaping, parking lot, or similar facilities, shall be so shielded and directed as to reflect away from adjoining properties. C. Security lighting fixtures are not to be substituted for parking lot or walkway lighting fixtures and are restricted to lighting loading, storage areas, and similar service locations. d. It is highly desirable and recommended for tenants and property owners to utilize low voltage "tivoli" or "dazzler" to decorate building facades. Old Town Specific Plan III - LJ G. SIGN REGULATIONS The intent of these regulations is to establish specific standards for all exterior signage that will ensure continuity, consistency, and harmony with the architectural quality of the Old Town environment as it may have appeared in the early 1900's. 1. Applicability These regulations shall apply to all signage within the Tourist Retail Core area of the Specific Plan. Signage within the Highway Tourist Commercial District, Community Commercial, Medium Density Residential District, and High Density Residential Land Use Districts shall comply with the sign requirements contained in the Development Code and the Signage Design Guidelines contained in Section IV.J of the Specific Plan. 2. Permit Required Unless specifically stated in these regulations, a sign permit is required prior to placing, erecting, moving, reconstructing, altering, or displaying any sign within the Specific Plan. 3. Prohibitions No person shall erect, re -erect, construct, enlarge, alter, move, improve, remove, convert, or equip any sign or sign structure or cause or permit the same to be done contrary to, or in violation of, the provisions of these sign regulations. All signs not expressly permitted by this Section are prohibited. No application for sign permit or other application for a prohibited sign shall be accepted, acted upon, or approved. 4. Prohibited Signs in Old Town ❑ Freestanding signs on lots with less than 300' of road frontage ❑ Roof mounted signs ❑ Animated signs, including time and temperature displays ❑ Rotating, moving, emitting, or flashing signs ❑ Balloon signs ❑ Ambient air balloons ❑ Internally illuminated signs, including front and back lit awning and window locations ❑ Neon tube signs ❑ Window signs above the second story ❑ Paper, cloth, or plastic streamers or bunting - except holiday decorations ❑ Formed plastic or injection molded signs ❑ Statues used for advertising ❑ Traffic sign replicas ❑ Vehicle signs Old Town Specific Plan III - 24 ❑ Any sign prohibited by the Development Code and not expressly permitted in this Specific Plan 5. Permitted Signs ❑ Wall Mounted Signs (business identification) ❑ Supergraphics ❑ Monument Signs ❑ Window Signs ❑ Under Canopy Signs ❑ Awning Signs ❑ Projecting Signs ❑ Indirectly Illuminated Signs ❑ Temporary A -Frame or Sandwich Board Signs 6. Sign Standards a. Wall Mounted Signs. Maximum of one square foot per linear frontage foot of business establishment. To be located no higher than the lowest of the following points: 25 feet above grade; Bottom of the sill line of the second floor windows; or Cornice line of the building. b. Sunergranhics. The purpose of allowing wall Supergraphics is to allow the advertising or depiction of products that may have been available in an 1890's marketplace. A supergraphic is a mosaic, mural, painting, graphic art, or combination thereof which is professionally applied to a building that does not contain any brand name, product name, letters of the alphabet spelling or abbreviating the name of any product, company, profession, or business, or any logo, trademark, trade name, or other commercial message. Maximum size shall not exceed 60% of wall surface. C. Monument Signs. A maximum of one double sided sign per street frontage if said street frontage is over 150 feet. Height of sign shall not exceed 6 feet above grade. Width shall not exceed 4 feet. Each tenant placard shall not exceed 12 inches high. Sign may only be indirectly illuminated, internal illumination is prohibited. No monument signs are allowed if the street frontage is less than 150 feet. d. Permanent Window Signs. On ground level, coverage shall not exceed 20 percent of the total window and door area visible from the exterior of the building; on second level, coverage shall not exceed 30 percent per window. (No window signs are permitted above second floor). Old Town Specific Plan III - ZJ e. Awning Signs. On ground floor level; 20 percent maximum coverage allowed of the total exterior surface area of each awning. On the second floor level and above; 10 percent maximum coverage allowed of the total exterior surface area of each awning. Internal illumination prohibited. f. Proiecting Signs. One per business allowed; maximum size may not exceed 3 square feet and shall not extend more than 3 feet from the wall surface. No illumination is allowed. Projecting signs shall only be attached to buildings, not to poles or other signs. Projecting signs may encroach into the public right-of-way a maximum of 3 feet subject to the approval of the Director of Planning. Town Specific Plan III - 26 g. Under Canopy Signs. One per business allowed under a canopy, roof, covered walkway, or porch; maximum size of 3 square feet per door entrance; minimum of 7 feet of vertical clearance shall be required from walking grade to the bottom of the sign. h. Temporary Signs. Temporary grand opening and special event signs are allowed for each business establishment on the exterior wall. Signs shall not be attached to any other freestanding element (porch balustrade, garden wall, tree, monument sign, vehicle, etc.). Signs shall be constructed of cloth, canvas, or other durable material. Plastic or vinyl banner signs are not permitted. The use of neon colored/day glow banner signs is also prohibited. All temporary signs, except for A-Frame/Sandwich Boards, shall abide by the provisions of the Ordinance Regulating Temporary Signs, as amended. i. A-Frame/Sandwich Board Sign. One A -frame or sandwich board sign allowed per property on Friday, Saturday, Sunday, and nationally designated Monday holidays. The size shall not exceed 3.5 feet high and 2 feet wide. A -frame signs shall not block the sidewalk and may not be illuminated. No permit is required for A -frame and sandwich board signs which comply with these provisions. Old Town Specific Plan III - 27 j. Menu Boards. One menu board, up to 4 square feet in area, is allowed for each restaurant or other eating establishment. Menu Boards may contain only the name of the establishment and the food available inside. The menu board must be located on a wall adjacent to the main customer entrance. Appropriate location for menu board . sign k. Multi -Tenant Project Signs. Any project that proposes to provide space for more than one tenant shall indicate the size and approximate location of all signs to be erected on the property at the time of initial application. Signs shall be shown on elevation drawings with accurate dimensions provided. Town Specific Plan III - 28 H. GENERAL PROVISIONS AND REGULATIONS The following regulations apply within all land use districts in the Old Town Specific Plan area. 1. Land Use Determinations. Whenever a particular type of land use is not listed in Table III-1, the Director of Planning shall determine if that unspecified land use is consistent with the overall intent of the district, in which the use is proposed; and is consistent with other permitted or conditional uses in that district. The Director's determination shall be final. 2. Nonconforming Uses and Structures. Where, at the time of passage of this Specific Plan, a lawful use of land or structure exists which would not be pemutted by the regulations imposed by this Specific Plan, such use or structure may be continued indefinitely unless one of the following is involved: ❑ If the nonconforming use vacates the property and the nonconforming use is not reestablished within one year, the use shall not be reestablished. ❑ If the nonconforming use voluntarily vacates the property after the year 2013 for any reason, a nonconforming use shall not be reestablished. ❑ If more than 50% of a nonconforming structure is damaged or destroyed, the nonconforming structure shall not be reestablished. ❑ If more than 25%, but less than 50%, of a nonconforming structure is damaged or destroyed, the structure may be replaced if the exterior of the repaired structure substantially conforms to the architectural standards contained in Section IV of this Specific Plan. 3. Adaptive Re -use Parking Waiver. In order to preserve historic or unique existing buildings in the Old Town Specific Plan area, additional off-street parking shall not be required for the use or intensification of use for these buildings. These designated historic buildings and structures are identified in the Old Town Historic Preservation District Ordinance (Section V.0 of the Specific Plan). 4, Public Right -of -Way Encroachments. In order to accomplish the overall design theme required by this Specific Plan, it may be appropriate to allow certain building accessories (e.g. awnings, trellises, stairs to porches, or projecting signs) to encroach into the public right-of-way. The Director may approve such encroachments under the Development Plan approval process provided in the Development Code. Old Town Specific Plan III - 29 5, Temporary Use Permits. Permits for temporary uses in the Old Town area shall conform with the provisions of Section 17.04.020 of the Temecula Municipal Code except that the outdoor display and sales of merchandise, customarily sold by the permanent Old Town business, is limited to four events per year. Each event is not to exceed four (4) consecutive days. 6. Setback Area Encroachments. Adjustments to setback requirements of up to 25% may be approved or conditionally approved by the Director of Planning if it can be demonstrated that the encroachment is otherwise compatible with the Specific Plan, and will enhance the overall appearance of the project or serve a particular useful function for the general public. Common examples of these encroachments include awnings, canopies, marquees, trellises, stairs, and other similar desirable architectural items. 7. Violations. It shall be unlawful for any person to violate any provision of this ordinance. Any person violating any provision of this ordinance shall be deemed guilty of an infraction or misdemeanor as hereinafter specified. Such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this ordinance is committed, continued, or permitted. Any person so convicted shall be, guilty of an infraction offense and punished by a fine not exceeding $100.00 for a first violation; and guilty of an infraction offense and punished by a fine not exceeding $200.00 for a second infraction. A third and any additional violation shall constitute a misdemeanor offense and shall be punishable by a fine not to exceed $1,000.00 or 6 months in jail, or both. Notwithstanding the above, a first offense may be charged and prosecuted as a misdemeanor. Payment of any penalty herein shall not relieve a person from the responsibility for correcting any violation. Old Town Specific Plan III - IV. DESIGN GUIDELINES CONTENTS: A. Purpose and Intent Page IV-1 B. Architectural Style Guidelines Page IV-2 C. Site Planning Guidelines Page IV-25 D. Parking Lot Guidelines Page IV-35 E. Landscape Guidelines Page IV-37 F. Lighting Guidelines Page IV-40 G. Public Art Guidelines Page IV-41 H. Outdoor Dining /Sidewalk Furniture Guidelines Page IV-45 L Paving Material Guidelines Page IV-46 J. Sign Design Guidelines Page IV-47 K. Streetscape Guidelines Page IV-51 A. PURPOSE AND INTENT The purpose of these Guidelines is to define an architectural vocabulary that will provide a measure of continuity to Old Town's commercial and higher density residential buildings. While some basic and consistent architectural principles are defined, variety and individual expression within this framework are encouraged. The community desires a character of architecture that will reflect Temecula Valley's history, natural landscape and climate. Architectural character is formed by the basic elements of a building and the manner in which they are combined. The desired character for buildings in Old Town is derived from early California (1890-1920) architecture, a design vocabulary reflected in the state's early missions and adobes. Its use has been a tradition for over 200 years in many communities of Southern California. There have been several periods of interpretation, revival and change; and many variations found in different communities of the state. While early California or Old Town Western architecture is not considered a specific style, several styles are often considered within it - Gold Rush, Spanish Colonial, and Monterey. In Old Town, these three styles shall be the most desirable historic prototypes for all new development. A Historical Note: Early California architecture came about as a result of the state's first settlers adapting Spanish and Mexican architectural precedents to the special conditions of California. The process normally meant simplifying the more complex and ornate Spanish examples and their details, adjusting to the more spartan economy and conditions, different building materials, and primitive workmanship of California. As American conquest of California proceeded, the new settlers brought elements of eastern United States and Classical Revival architecture, combining them with the early adobe and mission examples. The result was what we now call the Monterey Style. Many restored buildings of this period and style are found throughout the state, with the largest number in Monterey, and a well-known example, the Casa de Bandini, in San Diego's Old Town. Town Specific Plan IV- I B. ARCHITECTURAL STYLE GUIDELINES 1. Old Town Western Style. The most prevalent architectural style existing in the Old Town environment can best be described as Gold Rush Style or Western Frontier Style. This architecture has some common design elements depicted below. Guideline 1 - Graphic Depiction of Common Design Elements Are Shown in the Following Graphic. Board and battF/alse front "western" parapet Wooden balustrade Territorial pediment en wood siding Wooden fascia ffit t� t f�iA�� f��b ® �. )1331333 t910f81 � r q r� �6 X 6 UMALJU Wood braced columns L30" Bulkhead (typical) Shed roof with wooden shakes Wooden double doors Match canopy u i i e 40" Bulkhead elevations double doors (maximum) 4 X 4 Wood columns with 6 X 6 bases Design Elements of the Western Sytle Town Specific Plan IV- Guideline 2 - Recommended Western Style Elements The qualities and design elements of Western Style buildings in Old Town include: ■ ten foot high ceiling preferred on the first floor; ■ vertical or horizontal wood siding; ■ narrow wood porches with single shed roofs or wood canopies; ■ one and two story building mass; ■ significant wall articulation devices (porches, overhangs) ■ false roof parapets with heavy architectural cornice; ■ simple or unpainted color schemes; ■ rectangular facade; ■ regular or traditional commercial storefront window rhythm; ■ window shutters; ■ balconies with balustrade; ■ exterior wooden stairways; and ■ knee bracing at posts, balconies and overhangs. Guideline 3 - Not Recommended Western Style Elements The elements to avoid include: ■ highly reflective surfaces; ■ large blank, unarticulated wall surfaces; ■ unpainted concrete precision block walls; ■ reflective glass; ■ high tech plastic appearing siding; ■ irregular, modernistic window shapes and rhythm; ■ square 'boxlike" buildings; ■ mix of unrelated styles (i.e. rustic wood shingles and polished chrome); and ■ metal window sashes. Old Town Specific Plan IV-3 Guideline 4 - Solid to Void ■ Storefront construction should be approximately 60% transparent (void) with a maximum of 85% transparency. ■ Blank, solid end walls or side walls visible from public view should be avoided. If such walls are necessary for interior reasons, the building wall should receive some form of articulation of add -on elements such as awnings, cornice bands, arcades, trellises, etc. Guideline 5 - Roof Pitch and Materials ■ Roofs may be flat or sloped. Western false front parapet walls are encouraged but blank parapet walls around flat roofs are not allowed without heavy architectural cornice. The visible portion of sloped roofs should be sheathed with a roofing material having texture meaningful at the pedestrian scale, such as standing seam metal roofing, wood shingle, or tile. ■ Roof form should be consistent and integrated into the building composition. ■ The roof should be designed to screen rooftop equipment from all sides. ■ Radical/steep roof pitches which create overly prominent or out -of -character building such as A -frames or chalet style buildings are not recommended in Old Town. ■ Roofs or parapet walls should wrap around the entire building to avoid a cheap "stage -set" look. Wood shingles, composition roofing material, tile, slate, or painted metal seam roofs meeting City Codes are acceptable. Old Town Specific Plan /V - 4 Guideline 6 - Parapet Walls Parapet walls are an integral component of western architecture. In addition to providing visual screening of roof top equipment, they provide opportunity to establish an architectural character and display of signs. The integration of parapet walls into building design is encouraged. Parapets shall conform to the following guidelines. ■ Parapet walls shall completely screen the roof behind and all roof mounted equipment. ■ They shall be finished on any side visible from the street with materials compatible with those predominantly used on the building. ■ Parapet walls visible from rear or side yards shall be finished as above. However, they may utilize exterior plaster in lieu of wood siding. ■ Parapet walls shall utilize significant ornamental wood trim at the top, or utilize a heavily ornamented cornice. Typical Western Style Parapet Old Town Specific Plan IV-5 Guideline 7 - Exterior Building Wall Materials Exterior building walls are encouraged to use the following materials in an appropriate arrangement. These include: ■ Board and batten wood siding (unfinished preferred); • minimum of 12 inches with 1 inch by 2 inch bats ■ Horizontal wood siding (finished or unfinished); • horizontal'V'joint • horizontal channel joint ship lap with a minimum 3/8 inch channel • beveled ■ Brick; ■ Stone (local granite is preferred); ■ Adobe block (no bearing walls); and ■ Vertical wood siding (such as plywood) without batten. i i� Board and Batten Brick Shiplap Local Stone Old Town Specific IV-6 Guideline 8 - Windows ■ Wooden sash windows with decorative pediment are recommended. ■ Storefront windows typically projected out from wall surface and were multi- lite. ■ Second floor windows were typically wooden sash, double hung, traditional windows. Window shutters are recommended. ■ Plate glass windows are acceptable if they appear to be multi-lite windows or if the glass is "Turn of the Century" quality. Guideline 9 - Porch/Canopy Columns ■ Columns are typically 4x4 or 6x6 lumber which is decoratively shaped to depict a base, shaft, and capital. ■ Metal columns are acceptable. ■ Decoratively braced columns are recommended. Old Town Specific Plan I V - / Guideline 10 - 360' Architecture ■ All sides of a building receive stylistic architectural treatment except as required by Fire and Building Codes where noncombustible materials (concrete block) may be needed in areas immediately adjacent to other structures. Guideline 11- Color Palette ■ The wide range of colors which might have been used for exterior decoration in the late 1800's are well represented in the Sherwin-Williams Heritage Colors. These are 40 historic 19th Century hues that capture the grace and elegance of another era. Buildings of this style may remain unpainted, however painting is encouraged. While use of these colors is recommended, other similar colors will be considered. The Director may also identify other color palettes for Old Town that have the potential to achieve the same results. Town Specific Plan IV- 8 2. Spanish Colonial Style Spanish Colonial and Mission Style architecture are two very prolific historic architectural styles in Southern California. This style was very common in the late 1800's and early 1900's and is therefore important to include as a prominent building style in Old Town. Guideline 1 - Graphic Depiction of Connnon Design Elements are shown in the Mowing Graphic. Shed and — gable roofs Thick Pitched Roofs Gay We Roofs Alifi-Iite inset windows Courtyards Massive arches-J Wall Openings and columns Design Elements of the Spanish colonial Style —Exposed rotten and roftectails Smooth Stucco Little or no roof overhang Town Specific Plan IV-9 Guideline 2 - Recommended Spanish ColoniaUMission Style Elements The qualities and design elements of Spanish ColoniaUMission style buildings include: ■ one or two story building heights; ■ red clay tile roofs; ■ shallow -pitched tile roofs 2:12 to 6:12 pitch; ■ solid, massive walls; ■ smooth stucco wall surfaces; ■ arcades of round headed or flat arches, set on columns of wood or stucco; ■ enclosed courtyards; ■ recessed wall openings; ■ white or soft pastel earth tone colors; and, ■ ceramic tile accents (planters, benches, fountains, etc.). Guideline 3 - Not Recommended Spanish/ColoniaM ission Style Elements The elements to avoid include: ■ high pitched or extensive flat roofs; ■ simple, box -like architecture; ■ rustic, "woodsy" architectural styles; ■ large roof/eave overhangs; ■ extensive use of wood, glass, or metal ■ slumpstone walls; ■ wood siding; ■ dark wall colors; ■ metal window sash; and ■ window frames flush with exterior wall. Guideline 4 - Solid to Void ■ Storefront construction is recommended to be between 40% and 70% transparent. Old Town Specific Plan Iv- 10 Guideline 5 - Roof Pitch and Materials ■ Roof pitch for Spanish ColoniaVMission style architecture is typically low pitch. A 3:12 to 6:12 (vertical:horizontal distance) roof pitch is recommended for all main roof surfaces, with the exception of arcades or colonnades. ■ Roof pitch for attached arcades or colonnades is recommended to be a minimum 2:12. Roof types are recommended to be restricted to low pitched gable roofs, with the occasional use of hip or shed roof as an accent at the end of the building. The use of a mansard, A -frame, jerkin -head gambrel, or flat roofs are specifically not allowed. ■ Roof material should be standard mission barrel (U-shaped) clay tiles. Each tile should be a uniform reddish color and non -reflective (unglazed) for a soft finish look. Plastic tiles are not allowed. ■ Secondary (non -street facing) roofs may utilize "S" tiles of clay or concrete. A random application or tiles is recommended over symmetrical design. Tiles at the ends of the eaves shall be double or triple layered with exposed mortar to emphasize thickness. ■ All flashing, vents, pipes, and sheet metal are recommended to be colored to match the adjoining roof or wall material. 232'48CAOE ,/I &%3 H1P Ca CABLE Recommended Roof Pitch Old Town Specific Plan IV -11 Guideline 6 - Exterior Building Wall Materials ■ Building exterior walls should be smooth finished stucco. Heavily textured stucco walls are not recommended. ■ Simulated adobe walls (painted slumpstone) should not be used for structural (load bearing) walls. Wood, metal, glass, or slumpstone are not recommended as predominant exterior wall materials. ■ At wall openings on primary (street facing) exterior walls, an appearance of thickness and mass is strongly recommended. Old Town Specific Plan IV- 12 Guideline 7 - Windows ■ Spanish ColoniaUMission style windows range in shape from small rectangular, multi-lited casement frames to large round headed windows. Deeply recessed windows (minimum of twelve inches) in thick walls is an important characteristic. The use of flower pot shelves beneath windows is also recommended. ■ Recommended trim colors include pastel blues, greens, reds, and beiges. Multi-lited windows recessed into wall surfaces are strongly recommended as display windows for commercial areas. ■ The use of louvered glass, glass block or metal frame windows is not recommended. Reflective mirror glass is prohibited. Fabric awnings are recommended in moderation, while metal awnings are not allowed. Old Town Specific Plan /V -13 Guideline 8 - Columns and Arcades ■ Stucco columns should be square in cross section and appear massive in thickness; 16 inches per side is recommended. The use of capitals and column bands is encouraged. A capital, approximately 2 to 3 inches thick by 3 to 6 inches high should be incorporated at the top of the columns. The column's height should be 4 to 5 times the width of the column (16 inch). A base band, height approximately one half the column width, should be provided. ■ Arcades are recommended to have semi -circular arches in regular series with columns as supports. Variations such as parabolic arches are not recommended. Flat arches will be reviewed on a case -by -case basis and should have heavy wood elements versus stucco. Arcades, patios, and colonnades are typically paved with tile, brick, or stone. Town Specific Plan 1V - 14 Guideline 9 - 360' Architecture ■ All sides of a building must receive appropriate stylistic architectural treatments. Guideline 10 - Color Palette ■ Spanish Colonial/Mission architecture is typified by simple white and off-white wall colors. While other light pastels might be proposed, their use is discouraged in favor of white, beige or white with an antique wash finish. ■ Trim colors appropriate to this style include primary shades of blue and red, terracotta, aqua, medium to dark shades of green, and brown. Other colors may also be appropriate and will be considered on a case -by -case basis. Old Town Specific Plan IV- 15 3. Monterey Style As American conquest of California proceeded, the new settlers brought elements of eastern United States and Classical Revival architecture, combining them with the early adobe and Mission examples. The result was what we now call Monterey Style. Many restored buildings of this period and style are found throughout the state. The most notable local example depicting elements of this style is the Welty Hotel. Guideline 1 - Graphic Depiction of Common Design Elements are Shown in the Following Graphic. Roof Hip and gable roofs Railings Wood • 'I —Siding. geometric shape nmetrical Placement L—MWfi-IRe windows —smooth Windows and Doors with wood casement Sficco Design Elements of the Monterey Style Old Town Specific LV-16 Guideline 2 - Recommended Monterey Style Elements The qualities and design elements of Monterey Style buildings include: ■ gabled, low pitched, shingled roof; ■ ten foot high first floor ceiling; ■ symmetrical placement of windows and doors; ■ entrances with side and transom lites; ■ narrow wood porches and second floor balconies with wood railings; ■ modest to large roof overhangs; ■ use of wood window shutters; ■ rectangular facade; and ■ minimal wall articulation. Example of Typical Monterey Style Architecture Town Specific Plan IV- 17 Guideline 3 - Not Recommended Monterey Style Elements The elements to avoid include: ■ highly reflective surfaces; ■ unpainted concrete precision block walls; ■ reflective glass; ■ steep roofs or flat roofs; ■ irregular, modernistic window shapes and rhythm; and ■ metal sash windows. Guideline 4 - Solid to Void ■ Storefront construction is recommended to be between 40% and 60% transparent. Guideline 5 - Roof Pitch and Materials ■ Roof pitch for Monterey style architecture is typically low pitch. A 3:12 to 6:12 (vertical:horizontal distance) roof pitch is recommended for all main roof surfaces. ■ Roof types should be restricted to low pitched gable roofs. The use of a mansard, A -Frame, jerkin -head gambrel, or flat roofs is specifically not recommended. ■ Roof material should be comprised of wood shingles, composition roofing material, flat tile, slate or painted metal seam floors meeting City Codes. Old Town Specific Plan IV- 18 Guideline 6 - Exterior Building WaB Materials Exterior building walls are encouraged to use the following materials in an appropriate arrangement. These include: ■ smooth stucco; ■ board and batten wood siding; ■ horizontal wood siding; ■ brick/stone; and ■ adobe block (no bearing walls). Guideline 7 - Windows ■ Wooden sash windows, double hung with 2 over 2 or 6 over 6 lites are recommended. ■ Wood window shutters are recommended. Typical Window Frame Details Town Specific Plan Iv- 19 Guideline 8 - Porch/Canopy Columns ■ Porches are almost always constructed as covered balconies that are cantilevered out from the second floor. It is recommended to have the balcony extend from one end of the building to the other. ■ Balcony columns are typically 4 x 4's or 6 x 6's and constructed of wood. ■ A typical feature of Monterey architecture is the wood railings and balustrades on the second floor balcony. Typical porch layout Typical Balcony Details Old Town Specific Plan IV - 20 Guideline 9 - 360' Architecture ■ All visible sides of a building receive stylistic architectural treatment. Guideline 10 - Color Palette ■ The wide range of colors which might have been used for exterior decoration in the late 1800's are well represented in the Sherwin-Williams Heritage Colors. These are 40 historic 19th Century hues that capture the grace and elegance of another era. Buildings of this style may remain unpainted, however painting is encouraged. While use of these colors is recommended, other similar colors will be considered. The Temecula Planning Department maintains a full color brochure of the Sherwin-Williams Heritage Colors for public inspection. The Director may also identify other color palettes for Old Town that have the potential to achieve the same results. Old Town Specific Plan IV - LI 4. Other Period Styles (early 1900's) The three previously described architectural styles are the most desirable for Old Town. Extensive guidelines for other styles in existence during the early 1900's are not provided herein due to (1) their urban undesirability for Old Town; (2) likelihood of quality reproduction due to high cost of construction (The Bank/Classic Revival), or (3) limitation to mostly residential structures (California Bungalow and Victorian). Other historic styles will be considered for residential constructions If an applicant desires to introduce an architectural style into Old Town which is not provided for in these guidelines, the burden of proof shall lie with the applicant to provide evidence (historical or otherwise) that the particular style is appropriate for Old Town. Applications for development utilizing the following styles will be considered by the Director of Planning on a case -by -case basis. ■ Classic Revival - This revival style that was common between 1900 and 1920, was based primarily on Greek and to a lesser extent on Roman orders. This style produced symmetrically arranged buildings of monumental proportions. Colossal pedimented porticos were often flanked by a series of pilasters. Arches. and enriched moldings were not generally used. clastic Revive Old Town Specific Plan IV - 22 ■ Queen Anne — Queen Anne was a prominent architectural style in the 1880s and 1890s. Of all the Victorian house styles, Queen Anne is the most elaborate and the most eccentric. Although easy to spot, the Queen Anne style is difficult to define. Common elements include: bay windows, balconies, stained glass, turrets, porches, brackets, an abundance of decorative details, with steeply pitched and irregular roofs, all combined in often unusual and unexpected ways. Old Town Specific Plan IV - 23 ■ Craftsman Bungalow - C. uQnua nungmaw California Bungalow buildings are well represented in Old Town residential housing stock along Pujol Street. As a result, new residential construction in Old Town should utilize the California Bungalow as a model. The following graphic depicts the most notable bungalow architectural features. Roof Vent Gable End Typical Brackets Porch lent Tails Roof Vent. Brackets Gable End Porch Old Town Specific Plan !V - 24 C. SITE PLANNING GUIDELINES 1. Introduction. The area comprising the core of Old Town Temecula is typical of many small town/rural main streets. The buildings are predominantly side by side, forming a fairly continuous street wall, and are not setback from the right-of-way or sidewalk. The pedestrian quality of this relationship is enhanced by some arcades, mature trees, benches, and lack of emphasis on parking lots and parked cars. West Main Street is the oldest and most cohesive street in the area, however, many other streets in Old Town exist that do not contribute to the cohesiveness of the area. This cohesiveness is lost whenever parking lots are placed between the public right-of-way and the front of the building. These storefront parking lots have been allowed in the past instead of requiring new buildings to maintain the continuous street wall. It is the intent of these site planning guidelines to intensify the pedestrian activity which characterizes this area through requiring side, rear, or no on -site parking lots. Pedestrian passages to parking areas adjoining mid -block alleys are encouraged to facilitate the parking lot locations. 2. Commercial Site Planning Guidelines Guideline 1— Lot Coverage ■ Commercial (and mixed use) buildings in core of Old Town are not regulated by site coverage maximums. If the building meets all the setback requirements, a development proposal my cover the entire remaining portion of the lot. Guideline 2 - Front Building Wall ■ The front porch or arcade of any building located in the Old Town Tourist Retail Core should be built to the front property line. ■ New buildings are encouraged to set back the corners of buildings at the intersections to create pedestrian plazas as well as improve visual sight lines for vehicles. Comer setbacks of at least 10 feet are desirable. ■ Any building located at a corner intersection should incorporate architectural features at the ground floor which emphasize the importance of pedestrian movement. These features may include building cut-offs, walk-through covered arcades, trellis structures, and other elements which focus visual interest on the corners. ■ Awnings, trellises, stairs and other accessory building structures approved by the Director may project into the public right-of-way. If required by the Director of Public Works, an encroachment permit shall be also be required. Old Town Specific Plan IV - 25 Guideline 3 - Parallel Walls ■ Commercial buildings should be oriented on the lots in Old Town in a traditional town fashion. ■ The front building wall should be oriented parallel to the street. Slight modifications can be acceptable although entire frontages set on a 45 degree or more angle to the street are not consistent with traditional development patterns. ■ Pedestrian access for all buildings should be oriented to the major street upon which it is located. Secondary rear pedestrian entries are also recommended. Creek adjacent buildings are encouraged to orient pedestrian access on the creek side. Guideline 4 - Boardwalk System ■ The use of a covered boardwalk, porch, or arcade is strongly encouraged adjacent to the public pedestrian right-of-way (sidewalk). ■ Each project on Main Street and Old Town Front Street shall incorporate such a pedestrian system. The minimum width for a boardwalk is 8 feet. However, if seating areas are to be provided the minimum width should be 10 feet or greater. Similar pedestrian amenities should also be considered on side streets. ■ Buildings located on corner lots on Old Town Front Street shall also incorporate provisions for a pedestrian boardwalk on the side street frontages. wam r+we..r uw Town Specific Plan IV- Guideline 5 — Detached Accessory Buildings ■ Detached accessory buildings shall be placed on permanent foundations and constructed of materials and painted with colors that are compatible with the main building. ■ The designated use of a commercial detached accessory building shall be appurtenant to the use of the main building and located on the site based on its design and function. ■ Detached accessory buildings shall be subject to the architectural guidelines and development standards of the Old Town Specific Plan and meet all applicable City of Temecula building and fire codes. Guideline 6 — Fences and Walls ■ All fencing and wall materials utilized within the commercial districts of the Old Town Specific Plan Districts shall be compatible with the architectural theme of the adjacent building. Stacked river or natural rock, battered base walls and the traditional look of wrought iron are appropriate as well as western style wood fencing where applicable. Such structures should not act as a visual barrier to a building, porch or front yard. ■ Use of indigenous and local historical materials such as granite for walls and fences is strongly encouraged. Incorporation of wall caps and pilasters at entry points can also be utilized where these treatments are indicated. ■ Fencing should encourage an open commercial and residential neighborhood atmosphere, while providing a definition between public and private spaces, through the use of walls, fences and hedges around front yard areas. ■ Architectural features such as garden walls, arbors and trellises are ideal to soften building mass and should be an integral part of the building. However, it is important to avoid a tacked on appearance to hide poor massing and architecture. ■ Chain link and bare precision block or other concrete masonry unit (CMU) walls are not permitted fencing materials. ■ Decorative wrought iron or rough-hewn wooden gates used to accentuate a fence, wall or building are permitted. ■ Detailing of column pilasters with tile or appropriate decoration representing Western, Spanish ColoniallMission, Monterey or other period appropriate style elements are desirable. Old Town Specific Plan IV- Guideline 7 — Trellises and Shade Structures ■ Trellises should be constructed of materials compatible with the architectural character of the adjacent building. Heavy rough-hewn timber covered with vines is encouraged. Natural wood or neutral tone colors from the Sherwin- Williams Preservation Palette should be utilized. ■ Covered walkways and shade structures associated with a building should adhere to the design elements of that structure. Materials such as brick, local stone, adobe block and stucco, in the case of Spanish Colonial/Mission, Monterey, Western or period -appropriate styles, combined with natural timber and rough-hewn beams are recommended. Ground level landscaping and wrap -around vines are encouraged to soften the look of these structures. Old Town Specific Plan IV - 28 Guideline 8 — Gutters and Downspouts ■ Gutters and downspouts on the exterior of buildings in the commercial districts should utilize designs consistent with the turn -of -the -century time period represented in Old Town. Materials used shall be color coordinated with the building they are attached to. Roof scuppers should not be placed in areas that are visible from the street or other public places. Guideline 9 — Awnings ■ Awnings can add color, relief and protection of pedestrian and patrons from the elements. They also can provide a setting for signage. The use of awnings to delineate building entries and help orient pedestrians to business locations is encouraged. ■ Awning care and maintenance should be conducted in accordance with the manufacturer's guidelines. The useful life of a typical awning does not exceed eight (8) to ten (10) years. (A property owner should not contemplate the installation of these structures unless they are willing to replace them every eight (8) to ten (10) years.) ■ All awnings within the Old Town Specific Plan area should be regularly maintained and kept free of fading, stains and tears. ■ Colors of awnings shall be monotone hues selected from the Sherwin-Williams Preservation Palette and coordinated with the architecture of the building they are attached to. ■ Awnings can be imprinted with simple signage in accordance with the provisions of the Sign Standards and Guidelines detailed in this Specific Plan. Lettering style and size should be in scale with the awning on which the sign is located as well as any adjacent awnings. ■ Awnings should be made of high quality cloth (plastic, aluminum and vinyl material are not permitted) and be at least seven (7) feet high at the lowest point so as not to impede pedestrian traffic. ■ Awnings should not be wrapped around buildings in a continuous band. Instead, these structures should be used to enhance the fagade by placing them on top of doors, windows and other openings. ■ Awnings should not be so massive as to dominate the fagade but should be in scale with the rest of the building. ■ If lighted, awnings should be illuminated with period appropriate fixtures such as goosenecks. Old Town Specific Plan IV - 29 Guideline 10 — Pocket Parks In an effort to provide landscape breaks along the commercial streets of Old Town, a series of pocket parks in the form of pedestrian spaces, arcades as well as mid —block paseos and courtyards need to be provided. These areas can allow transitions between commercial buildings in addition to providing a setting for public art, seating, drinking fountains, and shade structures. Buildings and/or landscape elements surrounding a pedestrian space on a minimum of two sides typically define an area as a pocket park. ■ Appropriate design elements such as gateways, trellises, architecturally designed lighting and seat walls should be used to create a series of seating areas for pedestrians throughout Old Town. ■ Columns and ornamental entry gates using native stone, iron or rough sawn timber are encouraged. ■ Permanent outdoor seating for pocket parks can be incorporated into decorative masonry structures or architecturally compatible benches of native stone or brick and shall complement adjacent buildings and landscaped areas. ■ Landscaping designs should follow the Old Town Specific Plan Guidelines. ■ Pocket parks should be publicly accessible during daylight hours and linked to adjacent streets and sidewalks. Typical Pocket Park Amenities Old Town Specific Plan IV - 30 Typical Street Corner Pocket Park Typical Courtyard Details Guideline 11— Vending Machines ■ Vending machines should be located along the face of a building or against a structure designed to accommodate them. ■ Each machine shall be framed on the sides and top in rough-hewn wood or other period appropriate materials compatible with the adjacent building it is placed against. ■ Vending machines should not occupy more than ten percent (10%) of the length, maximum twenty (20) feet, of any wall facing a street or access road. ■ They should not obstruct private pedestrian walkways. A minimum of forty- four (44) inches shall be kept clear of obstruction. Additional space may be needed if pedestrian traffic volume warrants. Old Town Specific Plan IV - 31 ■ Vending machines are not allowed on the public right of way. 3. Residential Site Planning Guidelines Design guidelines for the site planning of multiple family dwellings are intended to restore the presence of dwellings along streets and to expand upon standard subdivision regulations to maintain a village atmosphere (particularly along Pujol Street) and create an aesthetic environment with traditional neighborhoods. Detached residential structures are expected to maintain the period appropriate street view but are allowed additional latitude in terms of site design. While these guidelines are specifically intended to discourage the construction of residential streets continuously lined with repetitious facades, parking lots, and garage doors, they do not limit the accessibility of dwellings by cars or reduce parking requirements. The following guidelines and illustrations show several alternatives for residential site planning which can be used to implement a new rural village concept for Old Town. Guideline 1- Vary Multi -Family Building Footprints ■ Buildings should be designed to minimize the appearance of a large, single, rectangular mass and to provide intimate or human scale. Avoid long, unbroken facades and simple box forms. To the extent possible, each of the dwelling units should be individually recognizable. This can be accomplished with the use of balconies, setbacks, and roofline changes. gq .m NOT RECOMMENDED Old Town Specific Plan IV - 32 Guideline 2 — Detached Accessory Buildings ■ Detached accessory buildings located in residential districts shall incorporate architectural treatments from the main building including siding, surface materials, trim, paint colors and roof materials. Guideline 3 - Open Parking and Carports ■ Cluster open parking and carports along internal private drives and behind residential structures. Incorporate the following recommendations into parking plans: Open Parking: ■ Should be screened from street view to the extent possible. ■ Every 10th space should be a landscaped island. ■ Provide special paving at entries. Carports: ■ Carport structure should be architecturally compatible with adjacent residential structures. ■ Plain prefabricated metal carports are not allowed. ■ Integrate carports with patio or building walls whenever possible. ■ Single carport structures should be limited in length to 10 parking spaces. Guideline 4 - Varied Front Yard Setbacks ■ For detached residential units, and un-stacked attached units, each group of three adjacent properties should contain at least one property whose front yard setback differs from those of its neighbors by at least 7 feet. Minimum setbacks should not be reduced to accommodate this variation. Provide Varied Front Yard Setbacks Old Town Specific Plan IV - 33 Guideline 5 - Garage Location ■ In older neighborhoods it is appropriate to locate the garage to the rear of the property. New infill projects should respect this traditional site planning concept whenever possible. Guideline 6 — Fences and Garden Walls ■ Residential areas should limit front yard fencing to materials compatible with the principal dwelling or multi -unit residential building and surrounding development. Simple wrought iron, cast iron, welded steel and substantial wood pickets painted a light color are options. Old Town Specific Plan IV - 34 D. PARKING LOT GUIDELINES The public view of open paved parking lots can detract from or obscure the historic theme of the Old Town area. This is especially important in the Retail Core area. The textures of paving can guide activities and movement patterns; it can channel traffic or prevent it from encroaching on specific areas; it can speed movement or slow it down. Smooth surface materials encourage walking while rough surfaces slow or inhibit walking. Paving materials therefore influence usability and comfort, as well as the perception of a historic time period. Guideline 1- Parking Lot Orientation ■ Parking lot location and orientation should be hidden from public view from Old Town Front and Main Streets. ■ Parking lots and/or structures should be located, as much as possible, to the rear of buildings. ■ Vehicular entry points to parking lots should receive special paving accents where the drive crosses the public sidewalk. ■ Off-street parking facilities should be designed so that a car within a facility will not have to enter a street to move from one location to any other location within the same parking facility. Guideline 2 - Joint Parking Facilities Encouraged ■ Shared parking between adjacent businesses and/or developments is strongly encouraged where practical. ■ Common driveways that provide vehicular access to more than one site are strongly encouraged. ■ Where parking areas are connected, interior circulation should allow for a similar direction of travel and parking bays in all areas to reduce conflict at points. of connection. Old Town Specific Plan IV - 35 Guideline 3 - Parking Lot Design ■ Parking areas should be designed to enhance the Old Town historic environment. ■ Parking areas must be landscaped in compliance with the requirements of the Development Code. ■ Parking areas should be separated from buildings by either a raised boardwalk walkway or landscaped strip, preferably both. Parking spaces which directly abut the building are strongly discouraged. ■ Parking lots should be designed so that pedestrians walk parallel to moving cars. Minimize the need for the pedestrian to cross parking aisles. ■ Avoid locating trash enclosures and other obstructions in parking areas or places where they block the line -of -sight for motorists. Guideline 4 - Site Access/Driveway ■ Entry driveways to parking lots in Old Town should be designed to enhance the Old Town historic environment. ■ Properties should avoid parking access points taken directly from Old Town Front or Main Streets whenever possible. ■ Whenever possible, locate site entries on alleys in order to minimize pedestrian/vehicular conflicts. When this is not possible design the front site entry with an appropriately patterned concrete or pavers to differentiate it from the sidewalks/boardwalk. ■ Parking access points, whether located on front or side streets should be located as far as possible from street intersections. The minimum distance recommended is 100 feet. ■ Common driveways that provide access to more than one site are strongly encouraged. Old Town Specific Plan IV - 36 E. LANDSCAPE GUIDELINES Landscaping in the Old Town Specific Plan Area shall achieve three specific ends: 1) to unify and establish an Old West theme; 2) to soften commercial development; and 3) to unify the area as a pleasant environment for residents and visitors. These three ends will be accomplished by a highly recognizable use of repeated planting treatments. Consistency and continuity within the street right-of-way and building setback areas is extremely important. New development in Old Town shall comply with the following landscape guidelines and the regulations of this Specific Plan. Guideline I - General Landscape Guidelines All development should follow these general landscape guidelines: ■ Emphasize use of varieties which require low maintenance and drought tolerant species in public and commercial areas, especially in large landscape areas. ■ Tree spacing along all streets and trails should be more informal with an uneven spacing. ■ Use boxed and potted plants in clay or wood containers, especially for enhancement of sidewalk shops. ■ Use color plantings at the base of a building, in planter boxes, and focal points. ■ Landscaping material is the preferred method used to obscure the view of any parking, storage areas, trash enclosures, and public utilities from a public street or pedestrian area. ■ Landscaping should not obstruct the sightlines of motorists or pedestrians, especially at pedestrian crosswalks. ■ Trees and shrubbery should not be located so that they interfere with the effectiveness of parking lot and street lighting. ■ Landscape screen plant materials should be large enough at planting to provide effective screening, and be capable of growing to the height and density desired within a reasonable period of time. ■ Provide complete automatic sprinkler or drip irrigation systems for all commercial projects in accordance with citywide water efficient irrigation requirements. Old Town Specific Plan IV - 37 Guideline 2 - General Landscape Material Guidelines All development should follow these general landscape material guidelines: ■ Use specimen trees (boxed trees) for immediate effect and accent. ■ Give consideration to rapidly growing trees. ■ Give preference to ground covers which require little maintenance. Authentic flower and vegetable gardens may be developed to add to the historic character. ■ Vines and climbing plants integrated upon building and perimeter garden and building walls are strongly encouraged. A few plants to consider for this purpose are bougainvillea, grape ivy, and wisteria vines. ■ The use of materials such as crushed rock, redwood bark chips, pebbles, and stone or masonry slabs should not be used in place of live plant materials in landscape areas. Old Town Specific Plan IV - 38 Guideline 3 - Minimum Plant Size and Spacine ■ A minimum of one 15 gallon size tree (25 feet in height or more at maturity) for every 800 square feet of landscaping. ■ A minimum of one shrub or vine for every 50 square feet of landscaping. Guideline 4 - Save Mature Oak Trees in Old Town ■ Save existing mature trees, where possible, especially Oak Trees (small trees may be moved and transplanted). Approval of a Certificate of Appropriateness must be obtained for removal of all trees having a trunk diameter of 10 inches or more measured 48 inches above existing grade. Guideline 5 - Preferred Old Town Trees The following lists the recommended alternative species for landscaping private property in Old Town. Other drought tolerant, low maintenance native species may be presented and approved by the City staff. The following trees are selected for their shade potential, color, height, and/or form: ■ Sycamore; ■ Liquidamber; ■ Evergreen Pear; ■ California Pepper; ■ Red Gum Eucalyptus; ■ Poplar; ■ Pinus; and ■ Oak. Town Specific Plan IV - 39 F. LIGHTING GUIDELINES The public sidewalks, places and alleys, exteriors, roofs, outer walls and fences of buildings and other structures and signs visible from any public street, place or position in the Old Town shall not be illuminated by any other illumination except as permitted herein; Guideline 1- General Lighting Guidelines The following general lighting guidelines shall be followed in Old Town: ■ Building or roof outline tube lighting is not appropriate. ■ Use of luminescent wall surfaces is not appropriate. ■ A limited number of lights can be used to create shadow, relief or outline effects when such lighting is concealed or indirect. ■ Concealed light sources are recommended. ■ It is encouraged that interior building lighting be left on at night to enhance pedestrian activity on the street. ■ The lighting system should be architecturally compatible with the surrounding building and express the unique historic character of the area. ■ Mercury vapor, exposed fluorescent, or exposed high intensity lights are not permitted. When full color recognition is needed, high pressure sodium lights should be used in public spaces. ■ Neon is not permitted in the Tourist Retail Core and Tourist Serving Residential Land Use Planning Districts. Town Specific Plan IV - 40 G. PUBLIC ART GUIDELINES The placement of public art within the Old Town Specific Plan Area is encouraged on both private and public property. Public art gives a community an identity that can be representative of a City's culture and heritage in addition to promoting social gathering places and interaction. Wall murals, lighting displays, sculptures, mosaics, monuments and fountains are all considered significant examples of artistic expression. Proposals for public art are subject to review by the Old Town Local Review Board and must comply with the following guidelines. Guideline 1- Location ■ Public art should be situated in highly visible places throughout the Old Town Temecula Specific Plan. Public art is encouraged in all gathering areas. Locations such as pocket parks or specifically designed settings to accommodate particular art pieces are ideal. Town Specific Plan IV - 41 Guideline 2 - Symbolic Content ■ Examples of public art in Old Town should relate to and represent the rich legacy of the Temecula Valley. Literal and abstract representations of local historical and old western elements are appropriate. Old Town Specific Plan IV - 42 Guideline 3 -Mosaics and Murals ■ The pictorial designs of these artistic works should compliment the color and architectural composition of the buildings on which they are painted as well as that of adjacent structures. Ideal facades for murals are exposed fire or windowless walls that are two or more floors in height. Guideline 4 - Sculptures and Monuments ■ Pieces selected should be representative of historical figures and events related to the Temecula Valley. Employment of iron, rough-hewn wood and native rock materials are desirable as a part of the presentation. Old Town Specific Plan IV - 43 Guideline 5 — Liahtine Displays ■ Lighting used as an artistic display should employ the same standards as fountains and use turn -of -the -century genre fixtures. They can also be constructed with works of sculpture, monuments and water features. Guideline 6 — Fountains ■ Water features in the form of above or below -ground fountains should enhance the surrounding architecture and, as historically appropriate, utilize materials from the Western, Monterey, Spanish/Colonial/Mission and other period - appropriate styles represented in the Architectural Style Guidelines (Section IV-B) of this Specific Plan. They are also recommended for open courtyard and passage spaces to provide relief in hot weather Old Town Specific Plan IV - 44 H. OUTDOOR DINING/SIDEWALK FURNITURE GUIDELINES Outdoor patio furniture and umbrellas used with restaurants and other commercial uses within the Old Town Specific Plan are considered an integral part of the street scene. As a result, period -appropriate street side furnishings as outlined in the following guidelines are required. Guideline 1- Furniture ■ All outdoor furniture (tables, chairs, serving stands and bars) shall be of high - quality, durable, and suitable for outdoor use. Wood, metal and natural looking materials are encouraged. ■ Outdoor furniture should be in scale and consistent with both the architectural style and colors of the adjacent building facade. Guideline 2 — Umbrellas ■ Umbrellas shall be made of high quality canvas material (not plastic, vinyl or aluminum) and be tall enough to allow pedestrian access. ■ Umbrella colors should be monotones selected from the Sherwin-Williams Preservation Palette and be coordinated with the paint and architecture of adjacent buildings. Multi -colored designs are to be avoided. ■ No signs or other types of advertising shall be printed on umbrellas, except for the name of the establishment on the umbrella valance. ■ Umbrellas should be traditional market style designs that integrate well with adjacent building architecture. ■ Wood and metal multi -post canopy structures used with fabric umbrellas are permitted where historically appropriate. Review by the Old Town Local Review Board is required for these installations. ■ Aluminum easy -ups are prohibited except where used in conjunction with an approved special event. Town Specific Plan IV - 45 I. PAVING MATERIAL GUIDELINES Paving materials that reflect the historic materials used in the nineteenth century are strongly encouraged in the Specific Plan area wherever possible. Guideline 1— Suitable Material Guidelines ■ Beige concrete with mexican beach pebble aggregate (1/2" - V) surface; ■ Stamped concrete boards, deep gray; or ■ Red Clay tile (12" x 12") in areas of low pedestrian and automobile traffic; ■ Textured, stamped concrete that is Terra Cotta with off white grout (to resemble tile); ■ Stamped concrete cobbles deep grey in color; ■ Brick or brick pavers in reds or browns; and Wooden planks (sidewalks and footpaths). Guideline 2 - Limit Paving Choice in Each Project ■ Limit the number of paving materials and patterns used in one place ■ Driveway entries should be different pavement than sidewalk or street pavement. ■ Vast expanses of concrete or asphalt, as in parking lots, are discouraged and should be modified with differing colors and paving patterns. Old Town Specific Plan IV - 46 I SIGN DESIGN GUIDELINES Signs in Old Town should advertise a place of business or provide directions and information. Signs should be architecturally attractive and signs such as painted wall signs should contribute to the retention or restoration of the historic character of the area. Signs should not compete with each other or dominate the setting via inconsistent height, size, shape, number, color, lighting, or movement. An effective sign and graphics system functions not as a separate entity but as an integral part of the built environment. When carefully planned, signs communicate essential information, while ordering and enhancing the architectural character of Old Town. This Specific Plan has regulations to help control the size, location, and number of storefront signs, but code restrictions above may not be enough. Design criteria are needed to encourage and coordinate well -designed signs. The following sign guidelines are also intended to assure the local merchant that all other Old Town commercial establishments are similarly regulated. Guideline 1- General Design Guidelines ■ Provide a clear message on the sign. ■ Use a brief message. The fewer the words, the more effective the sign. A sign with a brief, succinct message is simpler and faster to read, looks cleaner and is more attractive. ■ Avoid hard to read, overly intricate typefaces. These typefaces are difficult to read and reduce the sign's ability to communicate. ■ Avoid faddish and bizarre typefaces. Utilize western style typefaces that are easy to read. Discourage typefaces which are hard to read ■ Avoid signs with strange shapes. Signs that are unnecessarily narrow, oddly shaped, or unrelated to the products or services being provided on site can restrict the legibility of the message. If an unusual shape is not symbolic, it is probably confusing. Old Town Specific IV-47 ■ Use widely recognized logo's rather than print/text whenever possible. ■ Make signs smaller if they are oriented to pedestrians. The pedestrian -oriented sign is usually read from a distance of fifteen to twenty feet; the vehicle - oriented sign is viewed from a much greater distance. The closer a sign's viewing distance, the smaller that sign need be. ■ Signs with phone numbers are not permitted. This can clutter and obscure the main message. Guideline 2 - Sign Materials ■ Signs made of carved or sandblasted wood ■ Vertical or horizontal wooden signs can be effectively utilized in a variety of different ways on windows, building surfaces or as accent bands. A wooden wall sign can be painted or stained and sealed for a more natural look, depending upon the appearance of the surrounding structures. Lettering can consist of metal or raised wood and when placed within a sign band, will serve to unify the building facade. Carved or sandblasted wood signs are also appropriate. Guideline 3 - Sign Color ■ Sign colors and materials should be elements that were available in the 1890'S. ■ Colors should be selected to contribute to legibility and design integrity. Even the most carefully thought out sign may be unattractive and a poor communicator because of poor color selection. ■ Use significant contrast between the background and letter or symbol colors. If there is little contrast between the brightness or hue of the message of a sign and its background, it will be difficult to read. ■ Limit major colors to four on a single sign, except for logos. Too many colors overwhelm the basic function of communication. The colors compete with content for the viewer's attention. Limited use of the accent colors can increase legibility, while large areas of competing colors tend to confuse and disturb. ■ Where pictorial artwork is used in a design, multiple colors may be used for that portion of the sign. ■ Metal sign panels can utilize raised lettering on metal bands. Printing and lettering can also be applied directly to a flat metal sign band with letters consisting of wood, acrylic or metal. ■ Colors used in registered corporate logos and trademarks should be matched to the closest tones of the Sherwin-Williams preservation Palette when possible. Old Town Specific Plan IV - 48 Guideline 4 - Sign Letter Size Guideline ■ Sign lettering for storefront wall mounted signs should be large enough to read, however, they should not overpower the scale of the storefront. Sign lettering should meet the following size recommendations: For storefronts 30' wide or less, a maximum letter height of 8" is recommended; For storefronts 30' to 60' wide, a maximum letter height of 12" is recommended; For storefronts greater than 60' wide, a maximum letter height of 16" is recommended. Guideline 5 - Sign Architectural Compatibility ■ Sign design should relate to and enhance building architecture. ■ Sign size should be proportionate. The size and shape of a sign should be proportionate with the scale of the structure. ■ Place signs consistent with the proportions of scale of building elements within the facade. Within a building facade, the sign may be placed in different areas. A particular sign may fit well on a plain wall area, but would overpower the finer scale and proportion of the lower storefront. A sign appropriate near the building entry may look tiny and out of place above the ground level. ■ Place wall signs to establish facade rhythm, scale and proportion where facade rhythm doesn't exist. In many buildings that have a monolithic or plain facade, signs can establish or continue appropriate design rhythm, scale, and proportion. ■ As an alternative to an attached sign, lettering may be painted directly on the building facade. This method resembles a wooden or metal band but does not require the introduction of another material. RECOMMENDED NOT RECOMMENDED Sign is In scale and character with building. Sign fs out of scale and character with building. Old Town Specific Plan [V - 49 Guideline 6 - Wall Mounted Sims ■ Sign colors should be compatible with the building's color and the building. ■ The identification of each building or store's address in six inch high numbers over the main entry doorway or within ten feet of the main entry is recommended. ■ Additional smaller building signs containing the name of the business should be located at rear entrances when they are routinely used by customers. Old Town Specific Plan IV - .)v K. STREETSCAPE GUIDELINES This Section contains guidance on the anticipated streetscape improvements as well as the requirements for street furniture and other streetscape elements. The dominant elements of the streetscape for Old Town will be street/sidewalk hardscape, building signage and street furniture. The purpose of streetscape improvements for Old Town is to promote a high quality historic image that serves to enhance the visual experience of the area for tourists and residents alike. The preservation of the pedestrian scale and the relationship of buildings to streets are important criteria in the Old Town area. The initial streetscape improvements along Old Town Front Street and a portion of Main Street were completed in November 1998. An environment oriented to the pedestrian should be concerned with meeting not only functional needs, but also sensory needs throughout the provision of a network of simple, well-defined and well-proportioned outdoor spaces. In an effort to ensure a 1900-era experience, it is important not to over -plan the streetscape as turn of the century streetscapes were often simple, uncluttered, and less formal than contemporary streetscape programs. In addition, formalized street trees were not a major component of turn of the century streetscapes. 1. Sidewalk Concept The preferred Sidewalk Concept for Old Town consists of a two -tiered system. The first tier of the system is the public sidewalk. The second tier of the system is privately owned, covered porches, and arcades and is commonly described as the "browsing zone." a. The first tier, public sidewalk, which is located directly adjacent to the curb, should be a minimum of 8 feet wide. However, a wider width preferred, especially in areas where no second tier walkway is available. Wider widths are desirable. ■ The sidewalks shall be constructed of wood planks. The plank widths should vary in a random arrangement of 6", 8", and 10". The plank sidewalks shall be flush with the top of the curbs. Concrete handicapped ramps will often be necessary at corners. ■ Rolled curbs are recommended to provide an economical and softer alternative edge treatment. The curb and gutter should match the street paving materials. Old Town Specific Plan IV -.)I b. The second tier of the system is privately owned, covered porches, and arcades. This second tier is referred to as the "browsing zone." ■ The browsing zone shall be directly adjacent to and parallel to the public sidewalk and is recommended to be a minimum of 8 feet wide. Widths up to 12 feet may be appropriate if seating areas are provided. ■ The height (elevation) of the porch/boardwalk shall not be greater than 12 inches above the adjacent sidewalk, unless greater heights are required because of its flood plane location. ■ The porch should be open and accessible at both ends to allow continuous pedestrian browsing from one storefront to the next storefront. ■ While porch railings are discouraged between the public boardwalk and the storefront, they may be allowed, provided an entry/exit to the public boardwalk is included about every 25 feet. 2. Street Tree Approach In keeping with the Specific Plan goal of not formalizing the Old Town streetscape into a regimented design concept, street trees should be located to achieve a sense of "planned randomness." This approach is accomplished through actual in -the -field analysis since tree locations are not predetermined by a static formula (e.g. all trees 30 feet on center). No more than two of the same type tree should be planted next to one another. Distance between trees may vary between 20 to 40 feet, or more if necessary to avoid driveways and utilities. 3. Public Signage Public signage is an essential and integrated design element of the total Old Town environment. A carefully executed public sign program for Old Town can communicate vital information, reduce traffic congestion, boost retail sales as well as enhancing the architectural environment. For all public signage in Old Town, the Old Town district logo should be incorporated into the sign. The concept for public signage in Old Town is a three -tiered approach. The three tiers are Gateway Entry Signs, Public Parking Directional Signs, and Street Name Signs. Old Town Specific Plan IV - 52 9 <° � Z� . �v© \� } v. . a w� b. Parking Directional Signs Parking directional signs will be located primarily along Old Town Front Street at intersections with side streets where public parking access is available. Other side street locations may also be appropriate at or near the parking lot. The signs will be free standing and made of architecturally compatible materials. Illumination should be provided. An example of parking directional sign is shown below. C. Street Name Signs These signs will be simple wood construction similar to the existing wood signs currently located in Old Town. Old Town's logo may be incorporated into the street name placard or pole. These signs will replace older street name signage in the public right-of-way. Generic directional signs may be added to the existing street name poles provided that specific business names are not mentioned. Old Town Specific Plan IV - 54 4. Street Furniture Street furnishing can enliven and provide variety to outdoor spaces used by the public. Street furnishings serve an aesthetic as well as utilitarian function. Proper design and placement of such amenities will reinforce the Old West design theme and create a lively and festive atmosphere throughout the year in Old Town. The purpose of this discussion is to provide guidance on the materials and appearance for all street furniture within the Specific Plan. a. Wood Benches Wooden benches with vertical back slats and horizontal seat slats are preferred. Pressure treated Pine may be selected for an economical approach while Purple Heart wood is the perfect material for heavy use areas. Old Town Specific Plan IV - 55 b. Street Li hg tinQ Street lighting in small rural towns in the nineteenth century was often non existent for communities like Temecula. In order to enhance pedestrian safety at night however, pedestrian level lighting is recommended. The previously existing lighting in Old Town is the single acorn on a concrete pole typical of the 1930's - 1940's. This style is incorrect for this turn -of -the -century period being sought for Old Town. The preferred street lighting in Old Town is a simple lantern style of light fixture. The typical standard applicable in most situations will be a double posted pole. This style is required in the Tourist Retail Core and Tourist Serving Residential zoning districts. b. Trash Receptacles Trash receptacles should resemble either a whiskey barrel or crate or box in order to maintain the desired western style. Town Specific Plan IV - 56 C. Newspaper Racks All newspaper racks located with the boundaries of the Old Town Specific Plan, except for the Highway Tourist Planning Area, that are installed after the effective date of the Specific Plan shall either be constructed of rough-hewn wood stained dark or painted with a neutral color selected from the Sherwin- Williams Preservation Palette, or surrounded by a similarly constructed wooden facade. In order to maintain an uncluttered streetscape, newspaper racks should be placed adjacent to buildings and painted or stained with compatible colors. The design of the newspaper racks and facades must be harmonious with the Turn -of -the -Century look. Newspaper racks shall not located in locations that block emergency access, crosswalk entrances, handicapped access facilities, and store entrances. Lengthy concentrations of newspaper racks is discouraged to minimize obstacles to pedestrian movement. The number of individual newspaper dispenser in each rack should not exceed four. Old Town Specific Plan IV - 57 d. Mailboxes Mailboxes in Old Town should retain the rural delivery flavor of the mailbox rack system shown below for a multi tenant situation. Material should be dark stained wood. e. Bus Shelters While there will not be very many bus shelters in Old Town, the design should be compatible with the Turn of the Century look. Bus shelters should be custom designed and made primarily of wood. Color should be dark natural stain, white, or dark green. Metal and plexiglass contemporary designs are not allowed. Old Town Specific Plan IV - 58 f. Other "Period" Furnishings Many other streetscape furniture items make up the total streetscene. These items, in order to match the "period" style desirable for Old Town, will need to be custom designed and built. These items may include: ■ Phone booths; ■ Drinking fountains; ■ Fire hydrants; ■ Utility poles; or ■ Antique traffic signals. Town Specific Plan IV - 59 V. OLD TOWN HISTORIC PRESERVATION DISTRICT CONTENTS A. Purpose B. Establishment of the District C. Building Permits and Prohibitions D. Old Town Local Review Board (OTLRB) E. Old Town Local Historic Register F. Certificate of Historic Appropriateness G. Care and Maintenance H. Additional Violation Provisions for Historic Structures A. PURPOSE Page V-1 Page V-1 Page V-1 Page V-2 Page V-3 Page V-6 Page V-8 Page V-9 Protecting the cultural heritage and historical architectural resources found in Old Town is part of the overall goal for the revitalization of Old Town and the protection of the community's heritage. The Old Town Specific Plan also gives owners of eligible historic properties relief from the contemporary municipal codes, ordinances, taxes, and laws levied on newer contemporary structures. B. ESTABLISHMENT OF THE DISTRICT The boundary of the Old Town Historic Preservation District shall be coterminous with the boundary of the Old Town Specific Plan. C. BUILDING PERMITS AND PROHIBITIONS 1. Within the boundaries of the Old Town Historic Preservation District no person shall demolish, remove, relocate, alter, cause to be altered, or modify any designated historic building or structure without the issuance of a Certificate of Historic Appropriateness. 2. Within the boundaries of the Old Town Historic Preservation District, no person shall alter, or cause to be altered, any designated historic building or structure, except in strict compliance with the plans approved in conjunction with the issuance of a Certificate of Historic Appropriateness. 3. Within the boundaries of the O1dTown Historic Preservation District, no person shall relocate, or cause to be relocated, alter, or cause to be altered, construct, or cause to be constructed, any building or structure, except in strict compliance with the plans approved in conjunction with the issuance of a Certificate of Historic Appropriateness. Old Town Specific Plan V -1 4. Within the boundaries of the Old Town Historic Preservation District, no building permit shall be issued unless a Certificate of Historic Appropriateness is first issued in compliance with the provisions of this Chapter. 5. Interior building changes to non -historic building and structures that do not effect the buildings exterior are not required to obtain a Certificate of Historic Appropriateness. 6. Nothing in this section shall be construed so as to exempt any person from complying with any other provision of law. D. OLD TOWN LOCAL REVIEW BOARD (OTLRB) 1. The Old Town Historic Preservation District shall have an advisory review board known as the Old Town Local Review Board to provide input into all major projects within the Old Town Specific Plan. The Director of Planning may also provide the Board with information on major projects adjacent to Old Town that may have the potential to effect the Old Town area. 2. The Old Town Local Review Board shall be composed of five members and one alternate (who shall serve in the absence of any member). Board members shall be appointed by the City Council for terms of 3 years. The member terms shall be staggered so that all the members of the Old Town Local Review Board are not appointed at the same time. All members shall exhibit an interest in and knowledge of the history and architecture of the Old Town Historic Preservation District. At least one member shall be knowledgeable in architectural and construction techniques. Members shall serve without pay. 3. The Old Town Local Review Board shall hold regular public meetings and establish such rules as may be appropriate or necessary for the orderly conduct of its business. Three members shall constitute a quorum. At its first meeting of the year, the Board members shall elect a Chairman and Vice Chairman (who will officiate the meetings when the Chairman is absent), who shall serve for terms of one year. 4. The Old Town Local Review Board shall have the following powers and duties in addition to those otherwise provided in this ordinance: a. Provide for pre -application conferences with individuals interested in constructing or altering property within the Old Town Historic Preservation District. The purpose of these conferences shall be to familiarize the applicant with the historic significance and related architectural themes of the district. b. Utilize the adopted Old Town Specific Plan Design Guidelines in the review of applications as part of process to make determinations of consistency and appropriateness with the specific plan. Use the Design Guidelines as a basis for approving or denying applications for a Certificate of Appropriateness. Old Town Specific Plan V - 2 C. Explore means for the protection, retention, and use of any significant structures, natural features, sites, and areas in the district including but not limited to appropriate legislation and financing by independent funding organizations, or other private, local, state, or federal assistance. d. Serve as an advisory resource to all agencies of the City in matters pertaining to the Historic District, and to encourage efforts by, and cooperation with individuals, private organizations, and other governmental agencies concerned with preservation of the district's architectural, environmental, and cultural heritage. e. Render advice and guidance, upon request of the property owner or occupant regarding construction, restoration, alteration, decoration, landscaping, or maintenance of any structure, natural feature, site or area within the district. f. Encourage public understanding and appreciation of the unique architectural, environmental, and cultural heritage of the district through educational and interpretative programs. E. OLD TOWN TEMECULA LOCAL HISTORIC REGISTER 1. The City Council has identified the following historic buildings and structures in the Old Town area. These building and structures are officially designated on the Local Historic Register for the City of Temecula. All buildings on this list are eligible to receive any and all benefits authorized by the State of California for designated historic structures. The use of the Historic Building Code is specifically authorized. 2. The list of Designated Historic Buildings and Structures is as follows. The locations of the designated historic buildings and structures are also shown on Exhibit V-1. A. Saint Catherine's Church, 1920 B. Welty Building, 1897 C. Machado Store, 1910 D. Clogstone Restaurant, 1932 E. First National Bank, 1914 F. Palomar Hotel, 1915 G. Alec Escallier House, 1927-28 H. Burnham Store, 1902 I. Friedeman Meat Market, 1901 J. Welty Hotel, 1891 K. J.D. Welty, 1936 L. Arviso House, 1920 M. Delgado House, 1920 N. Unnamed residence, 1928 28314 Mercedes Street 28659 Old Town Front Street 28656 Old Town Front Street 28676 Old Town Front Street 28645 Old Town Front Street 28522 Old Town Front Street 41852 Main Street 42051 Main Street 42050 Main Street 42100 Main Street 42081 3rd Street 41915 4th Street 41878 4th Street 42251 6th Street Old Town Specific Plan O. Bill Friedeman House, 1922 42291 6th Street P. Nienke House, 1936 28575 Pujol Street Q. McConville House, early 1890's 28585 Pujol Street R. Albert Nienke House, early 1920's 28649 Pujol Street S. G.A. Burnham House, early 1880's 28653 Pujol Street T. Al Otto House, 1882 28717 Pujol Street Saint Catherine's Church building (Historic Building "A") was relocated to Sam Hicks Monument Park in 1992. The Bill Freideman House (Historic Building "O") was relocated on the same site in 2003 as part of housing project sponsored by the City Redevelopment Agency, 3. Since the initial adoption of the Old Town Specific Plan, a number of previously designated historic structure were determined to be substantially dilapidated and/or unsafe and it was determined that these historic structures could not be rehabilitated. The following is a list of designated historic structures that were demolished since the Plan's initial adoption 1994. This listing has been provided for historic documentation purposes only. a. Harry Walters House, 1930's, 28535 Pujol Street Removed in 1996 b. Unnamed residence, 1920, 28735 Pujol Street Removed in 1999 C. Knott's Garage, 1910, 28545 Old Town Front Street Removed in 2000 d. Angel Ramirez House, 1926, 28731 Pujol Street Removed in 2002 e. Fred Ramirez House, 1920, 28725 Pujol Street Removed in 2002 Old Town Specific Plan Old Town Temecula Specific Plan Exhibit V-1 Historic Structures Map A, Saint Ca#WrWs Church, 1920 B. Welty Building, 1897 C. Palomar Hotel, 1915 D. Madado Store, 1910 * Clogstone Reshauard, 1932 F. First Na&xW Bandit, 1914 G. Alec Fscalller House. 1927-28 H. Bum am Stare, 1902 I. Fdademan Meal Market, 1901 J. Welty Hotel, 1891 * Immigrant Olecs, 1891 L J.D. Welty, 1936 M. Arvlso House, 1920 N. Unnamed residence, 1920 O. Unnamed residence, 1928 P. Big Friedeman House, 1922 0. Unnamed residence, 19360 R. McC.aMlle House, early 18Ws S. Albert Nienks House, early 192Ps T. GA Burnham House, early 188Us U. Al Otto House. 1882 V. Fred Ramirez House, 1920 u 28314 Mercedes Street 28659 Old Town Front Street' 28522 Old Town Frord Street 286%Old Town Frond Street 29676 Old Town Front Street 2WA5 Old Town Front Street 41852 Main Street 42051 Main Street 42050 Main Street 42100 Main Street 42120 Main Street 42081 3rd Street 41915 4th Street 41878 4th Street 422516th Street 42291 6th Street 28575 Pyd Street 28M Pc4d Street 28649 Puld Street , 26653 PWd Street 28717 Rod Street 28725 P401 Street Q400 0 400 800 Feet N rbls*O m viawp geft ddto- 8_Nsbric_struc —.apr F. CERTIFICATE OF HISTORIC APPROPRIATENESS 1. No existing building or structure may be altered or demolished, and no new building or structure constructed without the prior approval of a Certificate of Historic Appropriateness pursuant to the provisions of this Section. 2. Certificates of Historic Appropriateness may be issued either by the Director of Planning or the Planning Commission or City Council as part of the approval process for any development within the Old Town Specific Plan. The determination of who approves the Certificate of Historical Appropriateness shall be based upon the approval authority established by the Development Code for the accompanying application. No development application for Level Two projects in Old Town, as described below, may be approved without a recommendation from the Old Town Local Review Board. 3. For the purposes of implementing the provisions of the Old Town Specific Plan there are two levels of Old Town development project. The first category is the ministerial or minor projects, referred to as Level One projects. The second category is for non - ministerial and major projects, also called Level Two projects. a. Level One Projects do not require the review and recommendation of the Old Town Local Review Board. Level One projects may be approved by administrative (staff only) review following the Director of Planning's determination to grant a Certificate of Historical Appropriateness. Typical examples include the following: • Interior changes or alterations to historic structures; • Re -landscaping around existing structure; • Re -roofing of an existing building; • Additions and remodels to non -historic single family residences; • Exterior architectural modifications to an existing commercial, office, or residential building effecting less than 25% of the front or street side exterior facade; • The demolition to non -historic buildings and structures; • New signs up to 12 square feet in size; and • Changes in the copy of previously approved signs. The Director of Planning, at their sole discretion, may forward Level One projects to the Old Town Local Review Board when unique circumstances, or the sensitivity of adjacent historic structures or land uses indicate the potential for an adverse aesthetic impact. Old Town Specific Plan V - 6 b. Level Two Projects have the potential for significant aesthetic impacts. Level Two Projects shall always require review by the Old Town Local Review Board prior to action by the approving authority. Typical examples of Level Two projects include, but are not limited to, the following: • Multi -family residential projects; • New commercial and office projects; • Exterior architectural modifications to an existing commercial, office, or residential building when 25% or more of the front or street side exterior facade is affected; • The alteration to a designated historic structure; • The demolition of, or substantial alteration to, a designated historic structure (requires Planning Commission approval); • New signs over 12 square feet; • Mini -monument signs located on architectural features that exceed the standard height requirement of four feet; and, • The removal of a specimen oak tree with a 10 inches or greater trunk diameter. 4. All applications shall be filed on the forms and in a manner determined by the Director of Planning. Applications shall not be accepted unless they are accompanied by the appropriate filing fee and such information and drawings as may be required by the Director of Planning. All applications for Certificates of Historic Appropriateness shall be signed by either the owner of the property or a person authorized by the owner. All drawings shall be signed by the architect responsible for the design and must be in sufficient detail to show the proposed design for the site. This includes the architectural design and elevations (including signs), proposed materials, textures and colors (including material samples), and the site layout (including all improvements affecting appearances, such as walls, walks, terraces, plantings, accessory buildings, signs, lights, and other similar elements). 5. Following the receipt of a complete application, the Director of Planning shall schedule a meeting of the Old Town Local Review Board within 60 days and provide the Board with a staff report, including a copy of the site plan and elevations. The Board shall review the application material and make a recommendation to approve or deny, with or without conditions, any requests for a Certificate of Historic Appropriateness to the approval authority designated by the Development Code. Old Town Specific Plan V - 6. In considering applications for Certificates of Historic Appropriateness, the Old Town Local Review Board shall make the following findings: a. That the proposed structure is in conformance with the general plan for Temecula and with all applicable requirements of state law and other ordinances of the city and is designed for the protection of the public health, safety, and general welfare. b. That the proposed structure is in conformance with the requirements of the Old Town Specific Plan, including the goals, objectives and policies, and architectural guidelines and standards. C. In the event of the proposed demolition of a designated historic building or structure, the Board shall also be required to find that applicant has submitted substantial evidence that the structure is imminently dangerous or unsafe and that the structure can not be effectively repaired or retrofitted. The expiration date for a Certificate of Historic Appropriateness shall be the same as expiration date for the accompanying planning application, as may be extended pursuant to the provisions of the Development Code. If the Development Code does not specify an expiration date, the project which the Certificates of Historic Appropriateness was approved shall commence construction within three years of the date of approval or the Certificate of Historic Appropriateness shall become null and void. No extensions of time will be allowed for these projects. G. MAINTENANCE AND CARE The owner, occupant, or other person in actual charge of an building or structure on Old Town Temecula Local Historic Register shall keep in good repair all of the exterior portions of such improvement, building, or structure, all of the interior portions thereof when subject to control as specified in the designation statement, and all interior portions thereof whose maintenance is necessary to prevent deterioration and decay of any exterior architectural feature. 2. Nothing in the requirements of section shall be construed to prevent the ordinary maintenance or repair of any exterior architectural feature in or on any designated Old Town Temecula Local Historic Register building of structure that does not involve a change in design, material, or external appearance thereof. Old Town Specific Plan V - 0 H. ADDITIONAL VIOLATION PROVISIONS FOR HISTORIC STRUCTURES In addition to the general violation provisions in Section III.11.7 of the Specific Plan, any person who demolishes, alters or removes a building or structure on the Old Town Temecula Local Historic Register, that person and the owner shall be required to restore the building, site, or structure to its original condition and setting prior to the violation within ninety days. Any action to enforce this provision may be brought by the city or any other interested party. This civil remedy shall be in addition to, any criminal prosecution and penalty and any other remedy provided by law 2. If any person demolishes or removes an building or structure on the Old Town Local Historic Register in violation of this section, no building or construction related (including grading) permits or permits to use the property as a parking area or other commercial venture shall be issued for a period of up to seven years, at the City Council's discretion, based on the significance of the resource from the date of demolition, except to replicate the lost resource. The failure to adequately maintain a designated historic building or structure can also be considered to constitute the unauthorized demolition of a building or structure on the Old Town Temecula Local Historic Register. For the purpose of this section, the demolition shall be presumed to have occurred on the date the city has actual knowledge of the demolition. The owner shall have the burden of providing an earlier date, if entitlement to an earlier date is claimed. The owner shall have the affirmative obligations to plant grass, to provide a temporary irrigation system to maintain such landscaping and to prevent the accumulation of debris and waste on the property during the interim period. Old Town Specific Plan V - 9 ATTACHMENT NO.4 PLANNING COMMISSION RESOLUTION R:\OTSP\Plan Amendments\PA03-0158\Staff Report CC1.doc 13 PC RESOLUTION NO.2004-036 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVE A COMPREHENSIVE UPDATE OF THE OLD TOWN SPECIFIC PLAN (PLANNING APPLICATION NO. 03-0158) WHEREAS, on November 9, 1993, the City Council of the City of Temecula adopted the General Plan; and WHEREAS, on February 8, 1994, the City Council of the City of Temecula approved the Old Town Specific Plan to guide the revitalization of Old Town Temecula; and WHEREAS, the Old Town Specific Plan created the Old Town Local Review Board to assist in the implementation of the Plan and to periodically suggest ways to improve the Specific Plan; and WHEREAS, the Old Town Local Review Board identified a number of areas where supplemental design guidelines could be necessary and worked with City Staff to develop detailed amendments to the Specific Plan; and WHEREAS, the Planning Commission considered these proposed amendments on June 17, 2004, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had a n o pportunity to, a n d id testify either i n support or opposition to this matter; NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF TEMECULA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recommendation to the City Council. The Planning Commission for the City of Temecula hereby recommends that the City Council approve a resolution and ordinance amending the Old Town Specific Plan, substantially in the form attached to this resolution as Exhibits A and B, and approve a Negative Declaration for this project. Section 2. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 16T" day of June, 2004. John Telesio, Chairman R:\OTSP\Plan Amendments\PA03-0158\Staff Report =.doc 14 ATTEST: Debbie Ubnoske, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that PC Resolution No. 2004-036 was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 16th day of June, 2004, by the following vote: AYES: 5 PLANNING COMMISSIONERS: NOES: 0 PLANNING COMMISSIONERS: ABSENT: 0 PLANNING COMMISSIONERS: ABSTAIN: 0 PLANNING COMMISSIONERS: Chiniaeff, Guerriero, Mathewson, Ohlasso, Telesio Debbie Ubnoske, Secretary RAMP\Plan AmendmentsTA03-0158\Staff Report=.doc 15 ATTACHMENT NO. 5 PLANNING COMMISSION STAFF REPORT R:\OTSP\Plan Amendments\PA03-0158\Staff Report CC1.doc 16 STAFF REPORT — PLANNING CITY OF TEMECULA PLANNING COMMISSION Date of Meeting: June 17, 2004 Prepared by: David Hogan Title: Principal Planner File Number PA03-0158 Application Type: Specific Plan Amendment Project Description: Update of the Old Town Specific Plan (SP-5) A comprehensive amendment of the Old Town Specific Plan to update make a number of corrections within the Plan, provide additional design criteria for walls, fences, accessory structures, signage, public art, and outdoor dining areas, as well as make minor adjustments to some Planning District boundaries. Recommendation: ❑ Approve with Conditions (Check One) ❑ Deny ❑ Continue for Redesign ❑ Continue to: ® Recommend Approval to City Council ❑ Recommend Denial CEQA: ❑ Categorically Exempt (Class) (Check One) ® Recommend Approval of a Negative Declaration to the City Council ❑ Mitigated Negative Declaration with Monitoring Plan ❑ EIR BACKGROUND SUMMARY: The Old Town Specific Plan (OTSP) was approved on February 14, 1994 following the approval of the City's first General Plan on November 9, 1993. Since that time, there have been three minor amendments related to parking and signage. City Staff and the Old Town Local Review Board (OTLRB) began considering modifications to the Specific Plan in 2003. The result of this lengthy process is the comprehensive update to the Old Town Specific Plan that is being proposed for the Commission's consideration. A complete copy of the updated Old Town Specific Plan is contained in Attachment No. 4. R:\OTSP\Plan Amendments\PA03-0158\Staff Report PC1.dot The update consists of both organization and format changes, as well as more substantive modifications. The primary content changes include modifications to the Land Use Plan, minor clean-up items to the zoning standards within the Plan, the establishment of additional guidelines for public art, outdoor dining areas, detached structures, fences, walls, awnings, pocket parks, vending machines, and signage, and the modification of the parking requirements in the Tourist Retail Core. The OTLRB considered these changes, and they are recommending that the Planning Commission approve the updated Old Town Specific Plan. Nine Local Review Board meetings were held between March 24, 2003 and June 14, 2004 to identify potential amendments, develop additional standards, and review the draft of the Specific Plan. The overall structure of the Old Town Specific Plan is being modified to remove a number of obsolete items as well as consolidate the historic preservation requirements into a single section. The current and proposed organizations are shown below. Section Current Specific Plan Content Proposed Specific Plan Content I. Introduction to the Specific Plan Introduction to the Specific Plan II. Discussion on the process of Goals, Polices and Objectives, along developing the original Specific Plan, with the infrastructure plans and summary of infrastructure plans, and discussions the Goals, Policies, and Objectives III. Zoning standards, Historic preservation Zoning standards requirements, and Old Town Local Review Board provisions IV. Architecture and design guidelines Architecture and design guidelines V. Suggested implementation program, Historic preservation requirements Old Town Local Review Board and Old Town Local Review Board procedures, and infrastructure plans provisions Attachment No. 5 contains a redline/strike out version of the current zoning standards from Section III of the Specific Plan However, because of the number of proposed changes, the organization of this Attachment is somewhat confusing. As a result, staff recommends that the Commission focus on what is being added and deleted rather than how it appears to be organized in this Attachment. The actual organization of Sections III and V in the Amended Specific Plan do not have this problem. Attachment No. 6 contains the new material being included into the Design Guidelines (Section IV of the Specific Plan). R:\OTSP\Plm Amendments\PA03-0158\Staff Report PCl.dot Changes to the Land Use Mao While the overall concept of the Old Town Specific Plan will not change, there are a number of changes being proposed to the Land Use Plan. The major changes focus on the expansion of the Tourist R etail C ore Planning D istrict. N one o f these c hanges undermine the i ntegrity o r goals of the Specific Plan. The specific Land Use Plan changes are as follows: Merging the Community Commercial -Tourist Support Area (at the south end of Old Town) into the Tourist Retail Core Planning District. The Community Commercial Tourist Support District is being removed from the Old Town Specific Plan. 2. Expanding the Tourist Retail Core northward to include the shopping center immediately north of the Sixth Street Parking Lot The other changes being proposed for the Land Use Plan represent minor adjustments to better reflect the underlying conditions. The other minor proposed Land Use boundary changes include the following: 3. Adding the Union 76 Service Station at the southeast corner of Rancho California Road and Old Town Front Street into the Highway Tourist Planning Area in the Specific Plan. The site was originally excluded from the Plan because of a concern that a service station could not be constructed on the site if it was included within the Specific Plan. However, when the site was actually developed, it incorporated appropriate design components from the approved Specific Plan. As a result, considering that the service station was developed in conformance with the Plan, there is no reason to not include it within the OTSP. 4. Moving the boundary adjustment between the Highway Tourist Commercial and Community Commercial Planning Areas (across the street from the Museum) to shift two parcels fro the Highway Tourist to Community Commercial area. These two lots are oriented toward the core of Old Town, facing Sam Hicks Park, and have land uses that are more appropriately designated as Community Commercial designation. 5. A more accurate delineation of the Open Space Planning Area to match the actual future creek channel location. The original location of the Open Space District in the OTSP was largely a guess. This map change will provide a more accurate delineation which should improve the development review process. The proposed Land Use Plan is shown in Attachment No. 7. An exhibit showing the current Land Use Plan are shown in Attachment No. 8. Permitted Use Matrix One of the most apparent changes to the Specific Plan is the clean up to the permitted use matrix. The original matrix had numerous repeat uses and was divided into a number of subcategories that often made it difficult to determine if a use was permitted or not. The proposed Plan Amendment consolidates these sub -lists into a single more consistent list using the format of the City's Development Code. In addition, staff is also proposing a number of minor changes to the I ist of possible u ses. A description of the u se changes i s i ncluded i n Attachment No. 9. The totality of these changes is expected to make this part of the Specific Plan easier to use. R:\OTSP\Plan Amendments\PA03-0158\Staff Report PCl.dot Zoninq and Development Standards Mixed Use Provisions. One of the goals of the original Specific Plan was encourage additional residential units in the Tourist Retail Core. These additional units were expected to assist in the revitalization of Old Town and the creation of a vibrant village center. However, the current Mixed Use Provisions are extremely restrictive and make it difficult to provide upper floor or rear lot area residential uses. The proposed amendment would make the provision of these accessory residential units easier. The proposed amendment would also bring future use development projects in Old Town into full compliance with the current General Plan's Village Center requirements as well as the Mixed Use provisions being considered as part of the Updated General Plan. The proposed amendment shifts the determination of the number of allowable units from a numeric criterion to a site design criteria. For example, a proposed mixed used development on a 50 foot wide and 150 foot deep lot would currently be limited to only 2 units. However, Staff and the Local Review Board feel that there is no reason why additional units could not be reasonably provided with the proper site design. As a result, the proposed amendment to the Old Town Specific Plan would replace the Medium Density numeric criteria for mixed use projects with the requirement for a conditional use permit. This would allow for maximum flexibility of the site design while retaining City control over the design of future mixed use projects. Parking Requirements. When the Old Town Specific Plan was adopted, the Plan referenced the citywide parking standards in Chapter 17.24 of the Development Code. Shortly thereafter, it became apparent that maintaining the current parking standard and requiring that buildings in Old Town be oriented toward the sidewalk were substantially in conflict. As a result, the City Council approved the elimination of the onsite parking requirement in the Tourist Retail Core. These proposed amendments would continue that opportunity while retaining the onsite parking requirement for the more automobile -oriented commercial and residential districts. Within the Tourist Retail Core and Tourist Serving Residential Districts, onsite parking would be required only for hotels, motels, and banks and financial institutions that are more than 1,250 square feet is size. The provision of onsite parking for mixed use residence is recommended but not required. Building Height. The current Specific Plan limits buildings to two stories and provides a mechanism for the City Council to approve taller structures. The proposed amendments would increase this allowable building height in the Tourist Retail Core to three stories. The City Council would retain the authority to approve higher structures if appropriate in context and location. Temporary Uses. The proposed Specific Plan Amendment would also increase the number of allowable outdoor sales event from 2 to four events per year within the Tourist Retail Core District. Given the character and nature of the Old Town, the additional events are expected to generate additional activity and excitement into the core of Old Town. This is an increase over the citywide standard of two events per year. R:\OTSP\Plm Amendments\PA03-0158\Staff Report PCl.dot 4 The final set of changes to the zoning standards is the eliminated the previous development incentives. The original incentive provisions, increasing building height, reducing the onsite parking standard, and increasing the number of allowable units were not achieving their desired goal and have already been incorporated into the design standards within the Specific Plan. A complete addition/deletion copy of the Zoning, Design Standards and Historic Preservation requirements are contained in Attachment No. 5. Additional Design Standards Over the years, the Old Town Local Review Board has often struggled with the need for additional design standards covering a variety of accessory structures, fences and awnings. In response to this, staff and the OTLRB developed supplemental standards for these items and are proposing that they be incorporated into Chapter IV of the Old Town Specific Plan. Along with these new discussions, new photographs and exhibits are also being proposed throughout the Design Guidelines. Some of the major items being included in this Amendment include the following. • Public Art. The addition of standards for where public art should be allowed and what types of themes are most appropriate for Old Town. This is located in Section IV.-G. • Outdoor Dining and Sidewalk Furniture and Umbrellas. A new section including the description of period -appropriate materials, colors and designs for street side furnishing. This is located in Section IV.-H. • Pocket Parks. This amended language provides standards for potential pedestrian spaces in the form of pocket parks and mid -block paseos. Desired construction materials for these are also identified. This is located in Section IV.-C. • Advertising and Sign Design Guidelines. T hese new amendments prohibit the use of phone numbers on signs, as well as clarify trademark color standards, and specify the use of multiple colors on pictorial artwork. This is located in Section IV.-J. The new material added to Section IV is contained in Attachment No 6. Historic Preservation Reauirements The proposed Specific Plan Amendment will locate all the historic preservation and Old Town Local Review Board provisions into a single Chapter of the Plan. The OTLRB's authority, mission, or composition is not being changed. The primary changes include the updating and simplification of the review procedure, a specific requirement to maintain designated historic structures, and the inclusion of a specific penalty in the event a designated historic structure is destroyed or removed without permission. The specific provisions would allow the City to require the complete and total replacement of an illegally removed historic structure. If this was not done, the City Council would be authorized the issuance of any building or use permit for a period up to seven years. R:\OTSP\Pl= Amendments\PA03-0158\Staff Report PCl.dot ENVIRONMENTAL DETERMINATION To evaluate the possible impacts associated with these changes to the Old Town Specific Plan, staff prepared an Initial Environmental Study. Using the original approved Specific Plan as the baseline condition; the analysis identified two impact areas that have the potential to see some change in terms of the environmental impacts. The two areas are parking and noise. The elimination of the onsite parking requirement for much of the commercial core has a potential to cause parking -related impacts in Old Town. However, to address this concern, the Specific Plan retains the requirement for centralized City parking lots to provide the necessary parking. To date, the City has constructed one lot at the north end of the Tourist Retail Core area and acquired another parking lot at the south end of the Tourist Retail Core. In addition, the City has recently acquired a number of parcels in the middle portion of the Tourist Retail Core and has plans of providing additional parking in this location. With the provisions to allow additional residential uses in conjunction with office and retail uses within the Tourist Retail Core, there is a possibility of an additional increment of noise impacts because of this area's proximity to Interstate 15. However, current building code requirements set interior noise requirements that will minimize most of these future noise impacts. The possible parking and noise impacts are considered to be less than significant. As a result, staff is recommending that the Planning Commission recommend to the City Council that a Negative Declaration be adopted. A copy of the Initial Environmental Study in contained in Attachment No. 10. CONCLUSION/RECOMMENDATION: The proposed amendments to the Old Town Specific Plan are expected to further revitalize the Old Town area and facilitate new development. The format and organization changes should make the Plan easier to use. Staff and the Old Town Local Review Board recommend that the Planning Commission recommend the approval of these Amendments to the Specific Plan to the City Council. A copy of the proposed Planning Commission Resolution is contained in Attachment No. 1. The proposed City Council Resolution and Ordinance referenced in the attached Commission Resolution are contained in Attachment Nos. 2 and 3, respectively. ATTACHMENTS 1. Planning Commission Resolution 2. Proposed City Council Resolution 3. Proposed City Council Ordinance 4. Draft Updated Old Town Specific Plan 5. Redline/Strikeout of Section III - Zoning Standards 6. New material added to the Design Guidelines 7. Proposed Land Use Plan 8. Existing Land Use Plan 9. Proposed Permitted Use Matrix Changes 10. Initial Environmental Study R:\OTSP\Plan Amendments\PA03-0158\Staff Report PCI.dot ATTACHMENT NO.6 PLANNING COMMISSION MINUTES R:\OTSP\Plan Amendments\PA03-0158\Staff Report CCi.doc 17 TEMECULA PLANNING COMMISSION DRAFT MINUTES OF A REGULAR MEETING CITY COUNCIL CHAMBERS 43200 BUSINESS PARK DRIVE JUNE 16, 2004 — 6:00 P.M. 0 Principal Planner Hogan presented a comprehensive amendment and update to the Old Town Specific Plan (OTSP); relaying that staff has been working with Development Processing Coordinator Noland and the Old Town Local Review Board for the past year on the revision of the Old Town Specific Plan (OTSP), the following are some of the changes to the Land Use Map: • That the Union 76 Service Station at the southeast corner of Rancho California Road and Old Town Front Street into the Highway Tourist Planning Area in the Specific Plan was added; • That moving the boundary, adjustment between the Highway Tourist Commercial and Community Commercial Planning Area to shift two parcels from the highway Tourist to Community Commercial area; and that these two lots are oriented toward the Core of Old Town; • That the Tourist Retail Core (TRC) will be expanding northward to include the shopping center immediately north; • That the Community Commercial Tourist Support District will be deleted at the southern end of Old Town; • That the Old Town Local Review Board recommended merging the Tourist Servicing Residential (TSR) Planning District into the Tourist Retail Core (TRC) Planning District; so staff recommends residences east of Mercedes Street be designated or permitted uses which will allow residences to stay and expand, and in an event of a fire, will allow residences to replace a residence; • That the proposed Specific Plan amendment will locate all the historic preservation and Old Town Local Review Board provision into a single chapter of the plan; • That the permitted use matrix has been updated; • That adjustments have been made to the mixed use provisions; • That staff formalized the elimination of a parking standard in the Specific Plan; DRAFT RAMinutesPC\061604 a • That staff is recommending that all the buildings in the Tourist Retail Core be allowed to build up to three -stories; • That additional design standards were added such as Public Art, Outdoor Dining and Sidewalk Furniture and Umbrellas, Pocket Parks, and Advertising and sign Design Guidelines; • That Shift Historic structure "O" one lot to the northeast; that this structure was shifted onsite as part of a larger housing project; • That building "B" has been added to the historic preservation list; • That building "M" (Delgado House); that there have been issues raised by the home owners in regards to the year of the Delgado House; and that staff will be sending a building inspector out to determine whether it is 1920s or 1940s. For Commissioner Chiniaeff, Mr. Hogan noted that a new parking structure is currently being explored. For Commissioner Olhasso, Mr. Hogan relayed that the Specific Plan (SP) has specific standards to allow both office and residential over retail or in some cases it could also be allowed behind it; that the original specific plan envisioned above but that the current plan would envision behind as well. For Commissioner Mathewson, Mr. Hogan relayed that there have been discussions about establishing a 3rd parking lot as an interim parking lot, prior to constructing a parking structure near Mercedes Street and Main Street. Director of Planning Ubnoske further clarified that with the Theater opening in the summer of 2005, staff would anticipate that there would be an increased demand for parking; and that currently staff is seeking areas for surface parking. Commissioner Olhasso suggested that a parking study be performed in Old Town. Commissioner Guerriero gave thanks to the Old Town Local Review Board and staff for an outstanding job with the revised Specific Plan. At this time, the Pubic Hearing was opened. Mr. Otto Baron, Temecula resident noted the following concerns: • That Director of Redevelopment Meyer had six (6) buildings in Old Town demolished; • Queried on why Mercedes Stress is considered part of the Tourist Retail Core; noting that he has had tourist business at 4th and Mercedes and he would desire to see tourist - type businesses near his store but that the City has been discouraging business from expanding. At this time, the Public Hearing was closed. DRAFT R:\MinutesPC\061604 COMMISSION DISCUSSION Commissioner Chiniaeff gave kudos to the Old Town Local Review Board and staff for a great job with the Specific Plan. MOTION: Commissioner Chiniaeff moved to recommend that the City Council approve the Old Town Specific Plan and addendum to the plan. Commissioner Guerriero seconded the motion and voice vote reflected unanimous approval. COMMISSIONER'S REPORT RAMinutesPC\061604 11 ATTACHMENT NO. 7 LIST OF PLANNING COMMISSION CHANGES R:\OTSP\Plan Amendments\PA03-0158\Staff Report CC1.doc 18 PLANNING COMMISSION CHANGES AMENDMENT TO THE OLD TOWN SPECIFIC PLAN 1. Modify Exhibit II-1, Roadway Improvement D to read: 'Reconstruct the Main Street Bridge over Murrieta Creek to serve vehicular, bicycle, and pedestrian travel." 2. Merge the Tourist Serving Residential (TSR) Planning District into the Tourist Retail Core (TRC) Planning District. A. Exhibit III-1 - Revise the Proposed Land Use Plan to eliminate the Tourist Serving Residential Planning District (see the attached replacement map). B. Add the following permitted use to Table III-1 LIST OF USES HT OTC TRC CC Residential, single family detached (east of Mercedes P Street only) C. Remove all references to the Tourist Serving Residential Planning District. (Sections 111.13,1, 11.B.2.e, III.D, III.F.3, III.F.9, and III.G.1, as well as Tables III-1 and III-3.) 3. Typographic correction on Page III-25, Subsection 6.a, Second Sentence — Replace the word "not' with "no". 4. Page III-21, Section III.F.4.c.i. The second sentence should be modified to read: `This requirement can be satisfied through a centralized public parking lot if the facility is located nearby." 5. Section V.E.2 and Exhibit V-1 — Remove the Fred Ramirez House formerly at 28725 Pujol Street and shown as Structure "U". The structure was unsound and has already been demolished. It will be added to the removed structure list. 6. Shift Historic Structure "O" one lot to the northeast. This structure was shifted onsite as part of a larger housing project. When the draft of the SP was first compiled the City had not yet received the updated parcel base. Since that time, we have received the update parcel base and are able to accurately determine the correct location. R:\OTSP\Plan Amendments\PA03-0158\Staff Report =.doc 19 ATTACHMENT NO. 8 PROPOSED LAND USE MAP RAMP\Plan Amendments\PA03-0158\Staff Report W.doc 20 Old Town Temecula Specific Plan Exhibit III-1 Proposed Land Use Districts Map ATTACHMENT NO.9 CURRENT LAND USE MAP R:\OTSP\Plan Amendments\PA03-0158\Staff Report W.doc 21 9 v i a i a v J li 1 co W W i d y a Z y ZZ w rL Z 0 ci Q Z J j I y o i W W I H LL i� nNuonira oMawrr / �4 i 0 WIN CL `5 ... C co c m �' O 'm C . o _ v E0.�mE�cc E 00 n =lm�a o � n ct ac�c Sze CO EsEc »Et c�o—VX38g °cx� 4� n F-Y"-Tq: I u t;I aA NOXV, SUMMARY OF LAND USE MATRIX CHANGES R:\OTSP\Plan Amendments\PA03-0158\Staff Report CC1.doc 22 SUMMARY OF PROPOSED PERMITTED USE MATRIX CHANGES The specific changes to the land use matrix are as follows: 1. Permit Self Service Car Wash in the Community Commercial zone, 2. Permit Gift Novelty, Souvenirs, Ice Cream and Yogurt Shops/Soda Fountains, Insurance, Brokers, and Services, Luggage and Leather Goods, and Real Estate Offices in the Highway Tourist Commercial zone, 3. Permit Laboratories, medical and dental to the Tourist Retail Core (on non -Front and Main Street locations), 4. Permit Wedding Chapel in the Old Town Civic zone, 5. Delete Bicycle Rental businesses from the Old Town Civic zone, 6. Delete the listings for Mini -Mall, Multi -tenant Merchant Marts, and Shopping Centers. These are styles of retail buildings not types of business. 7. Delete the listing for Post Office. The following are land use matrix listings are being proposed for deletion from the Plan: 8. "Financial Institution" (Bank, Financial Institution will remain.) 9. "Formal wear" (Clothing and Apparel Sales will remain.) 10. "Knit Shops" (Sewing Supplies and Fabrics will remain.) 11. "Legal Service" (Professional and Medical Offices will remain.) 12. "Medical Laboratories" (Laboratories, including film, medical and dental will remain.) 13. "Motel' (Hotel/Motel will remain) 14. "Nail Shops" (Beauty Shop will remain.) 15. "Record, Tape & Video Stores (Including rental)" (Phonographic/CD/tape/record store as well as Video Sales and Rentals will remain.) 16. "Rental Equipment' (Equipment Sales and Rental will remain.) 17. "Service Station" (Auto Service Station will remain.) 18. "Pool and Spa Sales" and "Spa Sales" (Swimming Pool and Spa, Sales and Supplies will remain) 19. "Television, Radio, & Electronic Component Sales" (Radio and TV Sales will remain.) R:\OTSP\Plan Amendments\PA03-0158\Staff Report =.doc 23 ATTACHMENT NO. 11 INITIAL ENVIRONMENTAL STUDY R:\OTSP\Plan Amendments\PA03-0158\Staff Report W.doc 24 City of Temecula P.O. Box 9033, Temecula, CA 92589-9033 Environmental Checklist Project Title Amendment to the Old Town Specific Plan PA03-0518 Lead Agency Name and Address City of Temecula P.O. Box 9033 Temecula, CA 92589-9033 Contact Person and Phone Number David Hogan, Principal Planner 909 694-6400 Project Location Old Town Temecula, generally located south of Rancho California Road, west of Interstate 15, and north of Santiago Road/First Street Project Sponsor's Name and Address City of Temecula, P.O. Box 9033, Temecula, CA 92589-9033 General Plan Designation Community Commercial (CC), High Density Residential (H), Medium Density Residential (M), Low Medium Density Residential (LM), Public Institutional (PI), and Open Space OS Zoning Specific Plan SP-5 Description of Project The Old Town Specific Plan (OTSP) was originally approved in 1994 and received appropriate environmental review at that time. This proposed amendment represents the first comprehensive review and reconsideration of the initial plan. The proposed amendments do not change the current direction or vision for the Old Town area or convert rural areas to areas of urban development. Instead these changes update the Plan and incorporate additional design guidelines. The proposed changes to the OTSP are listed below. • Update the information on the urban infrastructure plans. • Delete duplicate land uses from the permitted use matrix. • Add supplemental design standards for public art, outdoor dining areas, detached structures, fences, walls, awnings, pocket parks, vending machines, and signage. • Modify the Land Use Map as follows: o Expanded the Tourist Retail Core to both the north and the south (including the elimination of the Community. Commercial/Tourist Support area; o Added the southeast comer of Rancho California Road and Old town Front Street into the OTSP; and, o More clearly delineates the location of the existing channel for Murrieta Creek. • Update the historic structure inventory. • Delete the original implementation program. This analysis evaluates the potential impacts to the environment from the proposed changes to the Old Town Specific Plan. No specific development proposals are being considered as part of this amendment, as a result, speculative proposal specific impacts are not being considered. Surrounding Land Uses and Setting Old Town Temecula is located within a substantially built up urban area and is surrounded by residential, commercial and industrial land. Other public agencies whose approval None. is required R:\OTSP\Plan Amendments\PA03-0158\Initial Study.doc Page 1 Environmental Factors Potentially Affected The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a 'Potentially Significant Impact' as indicated by the checklist on the following pages. Aesthetics Mineral Resources Agriculture Resources Noise Air Quality Population and Housing Biological Resources Public Services Cultural Resources Recreation Geology and Soils Transportation/Traffic Hazards and Hazardous Materials Utilities and Service Systems Hydrology and Water Quality Mandatory Findings of Significance Land Use and Planning ✓ None Determination (To be completed by the lead agency) On the basis of this initial evaluation: ✓ I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a "potentially significant impact' or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the prop9sed project, nothing further is required. 3,2 4- Date For R:\OTSP\Plan Amendments\PA03-0158\Initial Study.doc Page 2 1. AESTHETICS. Would the project: Potentially Potentially Significant Unless;Le;ssThanSignificant Issuesand Su rtin Information Sources Im act .Mitigation Inco orated icantNo act Inn act a. Have a substantial adverse effect on a scenic vista? ✓ b. Substantially damage scenic resources, including, but not ✓ limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? C. Substantially degrade the existing visual character or ✓ guality of the site and its surroundings? d. Create a new source of substantial light or glare which ✓ would adversely affect day or nighttime views in the area? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. As a result, the proposed amendment to the Specific Plan will not have an adverse impact on aesthetics and no significant impacts are anticipated to the environment. 2. AGRICULTURE RESOURCES. In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: Potentially Potentially Significant Unless Less Than Issues and Su rtin Information Sources Significant Impact Mitigation Incorporated Significant Impact No Impact a. Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and ✓ Monitoring Program of the California Resources Agency, to non-agricultural use? b. Conflict with existing zoning for agricultural use, or a Williamson Act contract? ✓ C. Involve other changes in the existing environment which, due to their location or nature, could result in conversion of ✓ Farmland, to non-agricultural use? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The area of the Old Town Specific Plan is urban and contains no agricultural lands. As a result, the proposed amendment to the Plan will have no impact to agricultural resources and no significant impacts are anticipated. R:\OTSP\Plan AmendmentsTA03-0158\Initial Study.doc Page 3 3. AIR QUALITY. Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: Potentially Potentially Significant Unless Less Than Issues and Supporting information Sources a. Conflict with or obstruct implementation of the applicable air ignificant. SIm ad Mitigation incorporated Significant Impact No Impact uali Ian? ✓ b. Violate any air quality standard or contribute substantially to ✓ an existing or projected air guality violation? 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 (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d. Expose sensitive receptors to substantial pollutant ✓ concentrations? e. Create objectionable odors affecting a substantial number ✓ of people? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. As a result, air quality conditions in this area will not change because of these amendments and no new significant aesthetic impacts are anticipated. 4. BIOLOGICAL RESOURCES. Would the project? Potentially 'Potentially Significant' Unless Less Than ' Issues and Supporlinit Information Sources a. Have a substantial adverse effect, either directly or through Significant Impact Mitigation incorporated Significant Impact No Impact ✓ habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b. Have a substantial adverse effect on any riparian habitat or ✓ other sensitive natural community. identified in local or regional plans, policies, and regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? C. Have a substantial adverse effect of federally protected ✓ wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interru tion, or other means? d. Interfere substantially with the movement of any native ✓ resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? R:\OTSP\Plan Amendments\PA03-0158\Initial Study.doc Page 4 4. BIOLOGICAL RESOURCES. Would the project? Potentaily Potentially Significant Unless Less Than Issues and Supporting.Information Sources Significant Impact Mitigation Inoorponated Significant Impact No Impact e. Conflict with any local policies or ordinances protecting ✓ biological resources, such as a tree preservation policy or ordinance? f. Conflict with the provisions of an adopted Habitat ✓ Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation Ian? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The proposed changes will not change how biologic resources within this area are addressed. The area of the Old Town Specific Plan is urban and is not expected to contain significant biologic resources, except along the edge of Murrieta Creek. As appropriate, biological assessments will be required when specific development proposals are submitted for these areas. As a result, no significant impacts are anticipated. 5. CULTURAL RESOURCES. Would the project: Potentially Potentially Significant Unless Less Than Issues and Supportma InfoMation Sources Significant Impact Mitigation Inco orated Significant Im act No Im act ✓ a. Cause a substantial adverse change in the significance of a historical resource as defined in Section 15064.5? b. Cause a substantial adverse change in the significance of ✓ an archaeological resource pursuant to Section 15064.5? C. Directly or indirectly destroy a unique paleontological ✓ resource or site or unique geologic feature? d. Disturb any human remains, including those interred ✓ outside of formal cemeteries? Comments: The Old Town Specific Plan was originally developed to protect locally significant historic resources in the Old Town area and provide detailed design guidelines to maintain the character of the area. The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The proposed Amendment to the Plan will consolidate all historic preservation requirements into a single section and strengthen penalties for illegally destroying historic structures. The majority of the modifications to the Specific Plan represent clarifications of the existing plan or typographic corrections and will not affect cultural resources. As future development occurs within the Old Town area, there is a possibility that buried cultural and historic resources may be identified. However, the potential for this discovery, and any appropriate mitigation measures, will be addressed when specific development proposals are considered. As a result, no new significant cultural resource impacts are anticipated. R:\OTSP\Plan Amendments\PA03-0158\Initial Study.doc Page 5 6. GEOLOGY AND SOILS. Would the project: Potentially Potentially Significant Unless Less Than Significant Mitgahon Significant No Issues end Supporting IntormationSources Impact Incorporated Im act Im act a. Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i. Rupture of a known earthquake fault, as delineated on the ✓ most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii. Strong seismic ground shaking? ✓ iii. Seismic -related ground failure, including liquefaction? ✓ iv. Landslides? b. Result in substantial soil erosion or the loss of topsoil? ✓ C. Be located on a geologic unit or soil that is unstable, or that ✓ would become unstable as a result of the project, and potentially result in on- or off -site landslide, lateral spreading, subsidence, liquefaction or collapse? d. Be located on expansive soil, as defined in Table 18-1-B of ✓ the Uniform Building Code (1994), creating substantial risks to life or property? e. Have soils incapable of adequately supporting the use of ✓ septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The proposed amendments will not change how these concerns are currently addressed. As a result, no new significant geologic impacts are anticipated. 7. HAZARDS AND HAZARDOUS MATERIALS. Would the project: Polentially Potentially Significant Unless Less Than Issues and .Su ortin Infoima6ort.Sources. Significant Impact Mitigation Incorponated Significant Impact No Impact a. Create a significant hazard to the public or the environment ✓ through the routine transportation, use, or disposal of hazardous materials? b. Create a significant hazard to the public or the environment ✓ through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? C. Emit hazardous emissions or handle hazardous or acutely ✓ hazardous materials, substances, or acutely hazardous materials, substances, or waste within one -quarter mile of an existing or proposed school? RAOTSP\Plan Amendments\PA03-0158\fnitial Study.doc Page 6 7. HAZARDS AND HAZARDOUS MATERIALS. Would the project: Potentially Potentially Significant Unless Less Than Issues and Su rtin Information Sources Significant Impact Mitigation Incorporated Significant Impact No Impact d. Be located on a site which is included on a list of hazardous ✓ materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e. For a project located within an airport land use plan or, ✓ where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f. For a project within the vicinity of a private airstrip, would the ✓ project result in a safety hazard for people residing or working in the project area? g. Impair implementation of or physically interfere with an ✓ adopted emergency response plan or emergency evacuation Ian? h. Expose people or structures to a significant risk or loss, ✓ injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. As a result, no new impacts from hazards and hazardous materials are expected. 8. HYDROLOGY AND WATER QUALITY. Would the project: .Potentially Potentially Significant Unless Less Than Issues and Supporting Information Sources: - Significant Impact Mitigation Incorporated Significant Impact No Impact a. Violate any water quality standards or waste discharge ✓ requirements? b. Substantially deplete groundwater supplies or interfere ✓ substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses)? C. Substantially alter the existing drainage pattern of the site ✓ or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off -site? d. Substantially alter the existing drainage pattern of the site ✓ or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off -site? R:\OTSP\Plan Amendments\PA03-0158\Initial Study.doc Page 7 8. HYDROLOGY AND WATER QUALITY. Would the project: Potentlaily Potentially Significant Unlessjr:gnificant an Issues and Supporting Information Sources Significant Impact Mitigation Incorporated t No Im ad e. Create or contribute runoff water which would exceed the ✓ capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff? f. Otherwise substantialiv degrade water uali ? ✓ g. Place housing within a 100-year flood hazard area as ✓ mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h. Place within a 100-year flood hazard area structures which ✓ would impede or redirect flood flows? i. Expose people or structures to a significant risk of loss, ✓ injury or death involving flooding, including flooding as a result of the failure of a levee or dam? Inundation b seiche, tsunami, or mudflow? ✓ Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. Murrieta Creek is currently receiving flood control protection improvements that will remove any 100-year flood hazards from the area. These improvements, which are being carried out by the Riverside County Flood Control District, were not known when the original plan was approved. As a result, no significant hydrologic or water quality impacts are anticipated as a result of these changes. 9. LAND USE AND PLANNING. Would the project: Potentially Potentially Significant Unless Less Than Issues and Supportinig Information Sources. Significant Impact Mitigation Incorporated Significant Impact No Impact a. Ph iGally divide an established communi ✓ b. Conflict with any applicable land use plan, policy, or ✓ regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? C. Conflict with any applicable habitat conservation plan or ✓ natural community conservation plan? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The Old Town area is located between Interstate 15 and the escarpment of the Santa Ana Mountains. When the OTSP was first approved, the Old Town area was physically divided by Murrieta Creek. Since that time the City has constructed an additional bridge to better connect the two sides of Old Town. The proposed Specific Plan amendments continue to propose an additional bridge crossing over Murrieta Creek that will further tie the community together. Consequently, the amendments to the Specific Plan will not result in the physically division of this area. R:\OTSP\Plan Amendments\PA03-0158\Initial Study.doc Page 8 The Old Town Specific Plan was developed concurrently with the City's first General Plan. Both documents were developed so that the Old Town Specific Plan would be consistent with the General Plan when it was adopted. The proposed modifications to the Specific Plan do not change the degree of consistency with the General Plan. The Old Town Specific Plan continues to be a significant part of the City's historic preservation program. The Specific Plan retains the current historic preservation provisions and non -format related changes strengthen the City's ability to protect historic resources. The City, in conjunction with the County of Riverside, has recently approved a Multi -Species Habitat Conservation Program f or t he Western Riverside County Area. No habitat reserve areas are located within the OTSP. The Plan does identify the need for wildlife corridors along Murrieta Creek. This issue is being addressed in the design of the Murrieta Creek flood control improvements. As a result, no significant impacts are anticipated. 10. MINERAL RESOURCES. Would the project: Potentially Potentially Significant Unless Less Than Issues and Su Nn information Sources Significant Impact Mitigation incorporated Significant Impact No Impact a. Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the ✓ state? b. Result in the loss of availability of a locally -important mineral ✓ resource recovery site delineated on a local general plan, specific plan or other land use Ian? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. There are currently no identified mineral resources in Old Town Temecula. As a result, the proposed amendments are not expected to have a significant impact on the environment. 11. NOISE. Would the project result in: Potentially Potentially Significant Unless Less Than Issues 'and .SupportingInfortnatlon.Sources a. Exposure of persons to or generation of noise levels in Significant Impact Mitigation Into oratetl Significant Im ad ✓ No Impact excess of standards established in the local general plan or noise ordinance or applicable standards of other agencies? b. Exposure of persons to or generation of excessive ✓ roundbome vibration or groundborne noise levels? C. A substantial permanent increase in ambient noise levels in ✓ the project vicinity above levels existing without the ro'ect? d. A substantial temporary or periodic increase in ambient ✓ noise levels in the project vicinity above levels existing without theproject? e. For a project located within an airport land use plan or, ✓ where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f. For a project within the vicnioprvate airstrip, would the ✓ project expose people residing or working in the project area to excessive noise levels? RAOTSP\Plan AmendmentstPA03-015811nitial Study.doc Page 9 Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The Old Town area is adjacent to Interstate 15 and currently receives some noise impacts as a result. The proposed amendments could result in additional residential units in the Tourist Retail Core Planning Area, adjacent to Interstate 15, that might be impacted by freeway noise. However, current Building Code requirements sets interior noise standards that all future residential units would have to comply with. There may the potential for some construction -related noise and vibration impacts when individual development projects are undertaken in and around the area of the Specific Plan. Future construction -related impacts will be addressed when specific projects are being considered. The proposed amendments to the Specific Plan are not expected to significantly increase the previously identified level of noise exposure. As a result, no significant impacts are anticipated. 12. POPULATION AND HOUSING. Would the project: Potentially Issues. and S;up22rUng.Information. Sources Potentially Significant Im Significant Unless Mitigation Less Than Significant No a. Induce substantial population growth in an area, either ad Inco rated Impact Impact ✓ directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b. Displace substantial numbers of existing housing, ✓ necessitating the construction of replacement housing elsewhere? C. Displace substantial numbers of people, necessitating the ✓ construction of replacement housing elsewhere? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The Old Town Specific Plan has always envisioned a combination of public, commercial and residential uses. The proposed amendments do not alter that. As a result, no significant impacts are anticipated. , 13. PUBLIC SERVICES. Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: - Potentially .Potentially Sigmgcard Unless Less Than ssues and 'supportingInformation sources Significant. Im act. Mitigation Incorporated Significant Impact No Impact Je.Other it-12 n? ✓ public facilities? ✓ RA0TSP\Plan Amendments\PA03-0158\Initial Study.doc Page 10 Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The demand and need for public services is not expected to be effected by these modifications, as a result, no significant impacts are anticipated. 14. RECREATION. Would the project: Potentially Potentially Significant Unless Less Than Issues and Supporting Information Sources Significant Impact Mitigation Incorporated Significant Impact No Impact a. Increase the use of existing neighborhood and regional ✓ parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b. Include recreational facilities or require the construction or ✓ expansion of recreational facilities which might have an adverse physical effect on the environment? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The implementation of the General Plan, the Parks and Recreation and Trails Master Plans, along with the Old Town Specific Plan will continue to address the need for various recreation amenities in and around the Old Town area. As a result, no significant impacts are anticipated. 15. TRANSPORTATION/TRAFFIC. Would the project: Potentially .Potentially Significant Unless Less Than Issues and Supporting.Information Sources. Significant Impact Mitigation Incorporated Significant Impact No Impact a. Cause an increase in traffic which is substantial in relation to ✓ the existing traffic load and capacity of the street system (Le., result in a substantial increase in either the number of vehicle trips, the volume to capacity ration on roads, or congestion at intersections)? b. Exceed, either individually or cumulatively, a level of service ✓ standard established by the county congestion management agency for designated roads or highways? C. Result in a change in air traffic patterns, including either an ✓ increase in traffic levels or a change in location that results in substantial safety risks? d. Substantially increase hazards due to a design feature (e.g., ✓ sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e. Result in inadequate emergency access? ✓ 7= Result in inadequate parking capacity? ✓ g. with adopted policies, plans, or programs supporting ✓ IConflict alternative transportation (e.g., bus turnouts, bicycle racks)? R:\OTSP\Plan Amendments\PA03-0158\Initial Study.doc Page 11 Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The primary change associated with circulation and parking impacts is the continuation of a previous interim policy reducing the requirement for off-street parking. The proposed amendment will permanently remove most of the off-street parking requirements for commercial uses in Old Town. This change is not proposed to affect the parking requirements for banks, bed and breakfasts, hotels, and motels in the core areas of Old Town. To meet the future parking need, the City will continue to provide centralized parking areas. This change may result in the lack of parking close tot he entrances of some businesses. However, the areawide benefits to the future character of Old Town will offset any adverse effects. As a result, no significant impacts are anticipated. 16. UTILITIES AND SERVICE SYSTEMS. Would the project: Potentially Potentially Significant Unless Less Than ISSUeg and .Sn Nn IOfOnflagOn'$OUfCQ3 a. Exceed wastewater treatment requirements of the Significant Impact Mitigation Incorponated Significant Impact No Impact ✓ applicable Regional Water Quality Control Board? b. Require or result in the construction of new water or ✓ wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? C. Require or result in the construction of new storm water ✓ drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d. Have sufficient water supplies available to serve the project ✓ from existing entitlements and resources, or are new or expanded entitlements needed? e. Result in a determination by the wastewater treatment ✓ provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to theprovider's existing commitments? f. Be served by a landfill with sufficient permitted capacity to ✓ accommodate the roject's solid waste disposal needs? g. Comply with federal, state, and local statutes and ✓ regulations related to solid waste? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The changes to the Specific Plan will not alter the current utility systems in this area. As a result, no significant impacts are anticipated. RA0TSP\Plan Amendments\PA03-0158\lniBal Study.doc Page 12 17. MANDATORY FINDINGS OF SIGNIFICANCE. Would the project: Potentally Potentially Significant Unless Less Than Issues and Supporting Information. Sources Significant Impact Mitigation Incorporated Significant 1m act No Impact a. Does the project have the potential to degrade the quality ✓ of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b. Does the project have impacts that are individually limited, ✓ but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? C. Does the project have environmental effects which will ✓ cause substantial adverse effects on human beings, either directly or indirectly? Comments: The proposed amendments to the Old Town Specific Plan represent a series of minor modifications to the approved Specific Plan. The majority of the modifications represent clarifications to the existing plan or typographic corrections. The other proposed changes, if approved, will not substantially alter the anticipated future development in this area. The modifications will not noticeably alter the future development in this area as envisioned by the City General Plan and the current Old Town Specific Plan. As a result, no significant impacts are anticipated from this amendment. 18. EARLIER ANALYSES. Earlier analyses may be used where, pursuant to the tiering program EIR, or other CEQA process, one or more effects have been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case a discussion should identify the following on attached sheets. a. Earlier analyses used. Identify earlier analyses and state where they are available for review. b. Impacts adequately addressed. Identify which affects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. C. Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site -specific conditions for the project. SOURCES 1. City of Temecula General Plan. 2. City of Temecula General Plan Final Environmental Impact Report. 3. South Coast Air Quality Management District CEQA Air Quality Handbook. 4. Multiple Species Habitat Conservation Plan for Western Riverside County. 5. Old Town Specific Plan. R:\OTSP\Plan Amendments\PA03-0158\Initial Study.doc Page 13 ITEM 15 APPROVAL CITY ATTORNEY DIRECTOR OF FI CITY MANAGER( CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning I DATE: August 10, 2004 SUBJECT: Davidson Communities, Product Review (PA03-0725) Roripaugh Ranch Specific Plan, Planning Area 2 PREPARED BY: Dan Long, Associate Planner RECOMMENDATION: The Planning Commission recommends that the City Council 1. Adopt a resolution entitled: RESOLUTION NO.04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA UPHOLDING THE PLANNING COMMISSION APPROVAL FOR A PRODUCT REVIEW FOR 99 DETACHED SINGLE FAMILY RESIDENCES WITHIN PLANNING AREA 2 OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUTH OF MURRIETA HOT SPRINGS AND WEST OF THE FUTURE EXTENSION OF BUTTERFIELD STAGE ROAD AND KNOWN AS TRACT MAP 29661-2 BACKGROUND: This project went before the Planning Commission on April 21, 2004 and was continued to the May 19, 2004 Planning Commission. The project was continued so the applicant could enhance the elevations and revise the plotting plan. On May 19, 2004, the Planning Commission approved the project (3-2 vote) with conditions of approval; one of which required a structural change and elimination of a portion of a second floor. Two of the Planning Commissioners (Chiniaeff and Olhasso) did not vote in favor of the motion- because they did not want to condition the project to eliminate a portion of the second story without the ability to visually see the final product. The applicant's representative subsequently appealed a number of the conditions of approval. Staff has worked with the applicant to resolve all but one remaining issue. RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Staff Report-t.doo 1 DISCUSSION: The proposal that went before the Planning Commission included conditions of approval that required significant enhancement to the proposed project. Subsequent to the Planning Commission hearing, staff met with the applicant and has resolved all but one of the conditions which are being appealed. The final condition of approval that is being appealed is a recommendation by Planning Commissioner Mathewson to eliminate a portion of the second story of floor plan 2. The portion of the house recommended to be eliminated is the front portion of the house above the entry. Commissioner Mathewson made the motion, because he was concerned with the appearance of the street scene. Since the applicant was not proposing a single story product, Commissioner Mathewson wanted the street scene to include a variation in the roof -line with single story elements. PLANNING COMMISSION ANALYSIS The Planning Commission concurred with staff's recommended conditions of approval. The Planning Commission added one additional condition (Condition No. 20), which states: "Plan 2 shall be modified to eliminate the second story over the front portion of the product in order to reduce the massing along the street scene, subject to the approval of the Planning Director." The Planning Commission voted 3-2, approving the project with the revised conditions ATTACHMENTS: 1. Adopted Planning Commission Resolution 2. Excerpt Planning Commission Minutes (April 21, 2004 and May 19, 2004) 3. Planning Commission Staff Report (April 21, 2004 and May 19, 2004) 4. Excerpts Roripaugh Ranch Design Guidelines 5. Exhibits 6. Email correspondence from Applicant RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Staff Report-t.doc 2 ATTACHMENT NO.1 ADOPTED PLANNING COMMISION RESOLUTION RAProduct RevieMRoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Staff Report-1.doC 3 (� PC RESOLUTION NO.2004-022 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA03-0725 A PRODUCT REVIEW FOR 99 DETACHED SINGLE FAMILY RESIDENCES WITHIN PLANNING AREA 2 OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUTH OF MURRIETA HOT SPRINGS ROAD, KNOWN AS TRACT MAP 29661-2. WHEREAS, Davidson Communities, filed Planning Application No.PA03-0725, in accordance with the City of Temecula General Plan and Development Code; WHEREAS, Planning Application No. PA03-0725 was processed including, but not limited to public notice, in the time and manner prescribed by State and local law; WHEREAS, the Planning Commission considered Planning Application No. PA03-0725 on April 21, 2004 and May 19, 2004 at duly noticed public hearings as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter; WHEREAS, at the conclusion of the Commission hearing and after due consideration of the testimony, the Commission approved Planning Application No. PA03-0725; NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF TEMECULA ll DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: J Section 1. That the above recitations are true and correct and are hereby incorporated by reference. Section 2. Findings. The Planning Commission, in approving Planning Application No. PA03-0725 hereby makes the following findings as required by Section 17.05.010.17 of the Temecula Municipal Code: A. The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the city. The proposed single-family homes are permitted in the Low Medium Density land use designation standards contained in the Rodpaugh Ranch Specific Plan and the City's Development Code. The project is also consistent with the Low Medium land use designation contained in the General Plan. The site is properly planned and zoned, and as conditioned, is physically suitable for the type and density of the residential development proposed. The project, as conditioned, is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the City Wide Design Guidelines, and fire and building codes. B. The overall development of the land is designed for the protection of the public health, safety, and general welfare. The overall design of the single-family homes, including the site, building, parking, circulation and other associated site improvements, is consistent with, and intended to RAProduct Review\Roripaugh Ranch SPOavidson Communities Tr 29661-2, PA03-0725\Final Resolution w CofA-5-19-04.doc 1 protect the health and safety of those working in and around the site. The project has (1 been reviewed for, and as conditioned, has been found to be consistent with all applicable policies, guidelines, standards and regulations intended to ensure that the development will be constructed and function in a manner consistent with the public health, safety and welfare. Section 3. Environmental Compliance. A Notice of Exemption for Planning Application No. PA03-0725 was made per the California Environmental Quality Act Guidelines Section 15162. This section applies when an Environmental Impact Report (EIR) has been certified and there are not substantial changes not discussed or examined in the EIR. Section 4. Conditions. That the City of Temecula Planning Commission hereby conditionally approves Planning Application No. PA03-0725 for a Product Review for detached single family residences within Planning Area 2 of the Roripaugh Ranch Specific Plan located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road, Tract Map 29661-2. The Conditions of Approval are contained in Exhibit A. Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 19"' day of May 2004. VLA ��J= Joh elesio, Chairperson ATTEST: 1 aebbie Ubnoske, Secretary {SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that PC Resolution No. 2004-022 was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 19'n day of May 2004, by the following vote: AYES: 3 PLANNING COMMISSIONERS: NOES: 2 PLANNING COMMISSIONERS: ABSENT: 0 PLANNING COMMISSIONERS: ABSTAIN: 0 PLANNING COMMISSIONERS: Guerriero, Mathewson, Telesio Chiniaeff, Olhasso None None '! tl� Debbie Ubnoske, Secretary RAProduct Revlew\Rodpaugh Ranch SPTavidson Communities Tr 29661-2, PA03-0725\Final Resolution w C&A-5-19-04.doc 2 0 EXHIBIT A �l FINAL CONDITIONS OF APPROVAL RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Final Resolution w CofA-5-19.04.doc 3 EXHIBIT A CITY OF TEMECULA FINAL CONDITIONS OF APPROVAL Planning Application No. PA03-0725 Project Description: A Product Review for 99 detached single family residences within Planning Area 2 of the Roripaugh Ranch Specific Plan located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road, Tract Map 29661-2. Tentative Tract No.: DIF Category: Approval Date: Expiration Date: PLANNING DEPARTMENT 29661-2 Per Development Agreement May 19, 2004 May 19, 2006 Within Forty -Eight (48) Hours of the Approval of this Project (� 1. The applicant shall deliver to the Planning Department a cashier's check or money order made payable to the County Clerk in the amount of Sixty -Four Dollars ($64.00) for the County administrative fee, to enable the City to file the Notice of Exemption as provided under Public Resources Code Section 21108(b) and California Code of Regulations Section 15062. If within said forty-eight (48) hour period the applicant has not delivered to the Planning Department the check as required above, the approval for the project granted shall be void by reason of failure of condition (Fish and Game Code Section 711.4(c). General Requirements 2. The permittee/applicant shall indemnify, protect and hold harmless, the City and any agency or instrumentality thereof, and/or any of its officers, employees, and agents from any and all claims, actions, or proceedings against the City, or any agency or instrumentality thereof, or any of its officers, employees, and agents, to attack, set aside, void, annul, or seek monetary damages resulting from an approval of the City, or any agency or instrumentality thereof, advisory agency, appeal board or legislative body including actions approved by the voters of the City, concerning the Planning Application which action is brought within the appropriate statute of limitations period and Public Resources Code, Division 13, Chapter 4 (Section 21000 et seq., including but not by the way of limitations Section 21152 and 21167). The City shall promptly notify the permittee/applicant of any claim, action, or proceeding brought forth within this time period. The City shall estimate the cost of the defense of the action and applicant shall deposit said amount with the City. City may require additional deposits to coveranticipated costs. City shall refund, without interest, any unused portions of the deposit once the litigation is finally concluded. Should the City fail to either promptly notify or cooperate fully, permittee/applicant shall not, thereafter be responsible to RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Final Resolution w CofA-5-19-04.doc 4 indemnify, defend, protect, or hold harmless the City, any agency or instrumentality l thereof, or any of its officers, employees, or agents. Should the applicant fail to timely J post the required deposit, the Director may terminate the land use approval without further notice to the applicant. 3. This approval shall be used within two (2) years of the approval date; otherwise, it shall become null and void. By use is meant the beginning of substantial construction contemplated by this approval within the two (2) year period which is thereafter diligently pursued to completion or the beginning of substantial utilization contemplated by this approval. 4. Building elevations shall substantially conform to the approved Exhibits, including elevations, floor plans, landscaping plans, hardscape plans, and plotting plan, contained on file with the Planning Department or as amended by these Conditions of Approval. 5. The colors and materials for this project shall substantially conform to the approved colors and materials contained on file with the Planning Department. Any deviation from the approved colors and materials shall require approval of the Director of Planning. 6. This approval is for product review only and shall in no way limit the city or other regulatory or service agencies from applying additional requirements and/or conditions consistent with applicable policies and standards upon the review of grading, building and other necessary permits and approvals for the project. 7. The Development Code requires double garages to maintain a minimum clear interior dimension of 20' x 20'. This shall be clearly indicated on the plans prior to the issuance of building permits for the project. Interior dimensions are measured from the inside of garage wall to the opposite wall, steps, landing, equipment pedestals, bollards or any similar type feature. When the top of the stem wall is more than 87 above the garage floor, the required dimension is measured from the inside edge of the stem wall. 8. Applicant shall obtain the proper permits before construction, including Encroachment Permit from the Public Works Department for any work done in the City right-of-way, and Building Permit from the Building and Safety Department. 9. Fire Hydrants shall be installed prior to the start of any construction at the site. 10. Driveway widths shall comply with the driveway width requirements per City Standards. In order to allow for adequate street parking, the driveway widths at curbs will be limited to 24' maximum. it. All Spanish Revival and Monterey styles shall utilize a smooth to light texture stucco finish (20/30 aggregate or smoother) as determined acceptable by the Planning Director. East Coast Traditional styles shall utilize a light -medium (16/20 aggregate) finish. 12. Monterey and Spanish Revival styles shall include arched focal points. Each focal point shall be unique for the appropriate style. Focal points may include arched doors, windows, or other forms as determined acceptable by the Planning Director. 13. All Monterey styles shall utilize a Spanish style tile roof. 14. All Spanish Revival styles shall include a Barrel tile clay roof. RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Final Resolution w CofA-5-19-04.doc 5 15. One style of each plan shall provide a roof plan that is clearly different than the other styles in order to provide variation along the front and rear street scene. 16. The Spanish Revival and/or Monterey shall include an additional material(s) such as brick or stone to differentiate between the styles 17. All materials such as stone, brick and siding shall wrap around the side yard to the fence return or as determined acceptable by the Planning Director. 18. Fencing between units (on interior side yards and rear yards, but excluding view fencing) where not visible from the street shall be wood fence as shown in figure 2-15 (privacy fencing) or as approved by the Planning Director. 19. Fencing along lot 1, adjacent to the paseo trail shall include a low slumpstone wall for the first 20 feet and transition into a 6400t project wall as shown in figure 4-38 (Paseo entry). 20. Plan 2 shall be modified to eliminate the second story over the front portion of the product in order to reduce the massing along the street scene, subject to the approval of the Planning Director. Prior to the Issuance of Grading Permits 21. The applicant shall submit a Grading Plan, subject to the review and approval of the Planning Department. f) 22. The applicant shall sign both copies of the final conditions of approval that will be provided by the Planning Department staff, and return one signed set to the Planning Department for their files. 23. The applicant shall submit to the Planning Department for permanent filing two (2) 8° X 10" glossy photographic color prints of the Color and Materials Boards and of the colored version of the approved colored architectural elevations to the Planning Department for their files. All labels on the Color and Materials Board and Elevations shall be readable on the photographic prints. 24. A street tree master plan indicating what tree species will be planted on each street shall be submitted. The plan should graphically show the locations of all trees. One tree species per street shall be provided. Prior to the Issuance of Building Permits 25. The applicant shall comply with standards conditions and requirements set forth in the Roripaugh Ranch Specific Plan, Mitigation Monitoring Program, conditions of approval for Tract Map 29353 (PA01-0230, A -Map), Tract Map 29661(PA01-0253, B-Map), and Ordinance No. 02-14, the Development Agreement between the City of Temecula and Ashby USA, LLC for the Roripaugh Ranch Specific Plan, including, but not limited to attachment "5', which requires various on and off -site improvements. 26. The applicant shall submit street lighting and signage plans to the Planning Director for final approval. Street lighting shall comply with the Specific Plan, Riverside County Mt. Palomar Lighting Ordinance, and the mitigation -monitoring program. Said lighting shall comply with the standards as set forth in the Mitigated Monitoring Program and install RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03.0725\Final Resolution w CofA-5-1"4.doc 6 hoods or shields to prevent either spillage of lumens or reflections into the sky (lights must be downward facing). 27. The applicant shall submit mailbox elevations and a plot plan clearly indicating the location of each mailbox area. Mailbox type and location shall be subject to the approval of the Postmaster and Planning Director. 28. Prior to issuance of any residential building permit within Planning Area 2, the construction landscape and architectural plans for Paseos (including hardscaping, landscaping, fencing, lights and gates), Paseo gates Staff Gated Primary Entry, Card Key Entry, fuel modification zones shall be submitted and approved 29. Prior to construction of the Model Home complex, the applicant shall apply for a Model Home complex permit. 30. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings within private common areas for a period of one year, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from the completion of the landscaping. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the bond shall be released. 31. Precise Grading Plans consistent with the approved rough grading plans, plotting plan, structural setback measurements shall be submitted and approved. f) 32. The developer shall demonstrate to the Planning Director that all homes will have double paned windows with at least a 25 STC rating installed to reduce noise from occasional aircraft overflights. 33. The developer shall provide proof that construction debris, including but not limited to lumber, asphalt, concrete, sand, paper and metal is recycled through the City's solid waste hauler, subject to the approval of the Community Services Department. 34. All design components shall comply with applicable provisions of the 1998 edition of the California Building, Plumbing, Mechanical and Fire Codes; 1998 National Electrical Code; California Administrative Code, Title 24 Energy and Disabled Access Regulations and the Temecula Municipal Code. 35. Obtain all building plans and permit approvals prior to commencement of any construction work. 36. A pre -construction meeting is required with the building inspector prior to commencement of any construction or inspections. 37. Provide appropriate stamp of a registered professional with original signature on plans and structural calculations submitted for plan review. 38. Provide electrical plan including load calculations and panel schedule for plan review. 39. Schematic plumbing plans, electrical plan and load calculations, along with mechanical equipment and ducting plans shall be submitted for plan review stamped and original signed by an appropriate registered professional. RAProduct Review\Roripaugh Ranch SMDavidson Communities Tr 29661-2, PA03-0725\Final Resolution w CofA-5-19-04.doc 7 40. Obtain street addresses from the Building Official prior to submittal of plans for plan (1 review. J 41. Signage shall be posted conspicuously at the entrance to the project that indicates the hours of construction, shown below, as allowed by City of Temecula Ordinance No. 94- 21, specifically Section G (1) of Riverside county Ordinance No. 457.73, for any site within one -quarter mile of an occupied residence. Monday -Friday: 6:30 a.m. — 6:30 p.m. Saturday: 7:00 a.m. — 6:30 p.m. No work is permitted on Sunday or Government Holidays Prior to the Issuance of Occupancy Permits 42. All required landscape planting and irrigation shall have been installed consistent with the approved construction plans and shall be in a condition acceptable to the Director of Planning. The plants shall be healthy and free of weeds, disease, or pests. The irrigation system shall be properly constructed and in good working order. 43. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from final certificate of occupancy. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the applicant shall release the bond upon request. j 44. If deemed necessary by the Director of Planning, the applicant shall provide additional landscaping to effectively screen various components of the project. 45. Front yard and slope landscaping, hardscaping and fencing within individual lots shall be completed for inspection prior to issuance of each occupancy permit (excluding model home complex structures). 46. The developer shall submit proof that all local refuse generators have been provided with written information about opportunities for recycling and waste reduction (i.e. buyback centers, curbside availability), subject to the approval of the Public Works and Community Services Departments. RAProduct ReviewJ\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Final Resolution w CofA-5-19-04.doc 8 47. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. By placing my signature below, I confirm that I have read, understand and accept all the above Conditions of Approval. I further understand that the property shall be maintained in conformance with these conditions of approval and that any changes I may wish to make to the project shall be subject to Planning Commission approval. Applicant's Signature Applicant's Printed Name Date RAProducl Review\Rodpaugh Ranch SPTavidson Communities Tr 29661-2, PA03-072571nal Resolution w CofA-5-19-04.doc 9 ATTACHMENT NO.2 EXCERPT PLANNING COMMISSION MINUTES (APRIL 21, 2004 AND MAY 19, 2004) RAProduct RevievARoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Staff Report-1.doc 4 MINUTES OF A REGULAR MEETING OF THE CITY OF TEMECULA PLANNING COMMISSION APRIL 21, 2004 CALL TO ORDER The City of Temecula Planning Commission convened in a regular meeting at 6:00 P.M., on Wednesday, April 21, 2004, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Chairman Telesio thanked Eve Craig for the prelude music. ALLEGIANCE Commissioner Chiniaeff led the audience in the Flag salute. ROLL CALL Present: Commissioners Chiniaeff, Guerriero, Mathewson, Olhasso, and Chairman Telesio. Absent: None. I - PUBLIC COMMENTS No comments. CONSENT CALENDAR 1 Agenda RECOMMENDATION: 1.1 Approve the Agenda of April 21, 2004. 2 Minutes RECOMMENDATION: 2.1 Approve the Minutes of March 3, 2004. 3 Director's Hearing Case Update RECOMMENDATION: 3.1 Approve the Director's Hearing Case Update for March 2004. RAMinutesPC\042104 1 MOTION: Commissioner Guerriero moved to approve the Consent Calendar and requested to move Item No. 7 after No. 5. Commissioner Mathewson seconded the motion and voice vote reflected unanimous approval. COMMISSION BUSINESS 0 the General Plan after it is updated RECOMMENDATION 4.1 Recommend City Council Approval of the Chaparral Interim Policy Principal Planner Hogan presented a staff report (of record), noting the following: • That in developing the proposed policy, staff had discussions with an ad hoc City Council Subcommittee as well as the General Plan Community Advisory Committee (CAC); • That both groups were of the opinion that development proposals that protect sensitive open space areas and provide local trail connections are desirable and have the highest potential for community wide benefits; • That the proposed interim policy is as follows: o Limit the gross density in the Chaparral area to one dwelling unit per acre, except for the tier of lots adjacent to Ynez Road where a density of two dwelling units per acre would be more appropriate; That a one unit per acre density allow half -acre sized lots to help preserve sensitive open space and habitat areas; o That all future developments provide trail dedications for the Citywide trail network when possible; That the City Council reviewed the policy direction received from the Subcommittee and the Commission Advisory Commission (CAC) and refer the matter to the Planning Commission for a formal recommendation. For the Commission, Mr. Hogan relayed that the land uses that are currently in the General Plan uses are currently in the General Plan interim policy; and that what is being proposed is to allow'/2 acre lots in what is currently a one -acre zoning district; that there are two different situations being proposed, one would be for the acre lots and the other project area is for the one -acre density with the ability to go down to an'h lots if the remaining is set is some form of open space. RAMinutesPC\042104 2 Mr. Hogan also relayed that for City -owned trails, proper maintenance would include: regular inspections, repairs and resurfacing as needed, weed control, safety signage, and stripping (if hard surfaced); that when the City trail facilities are constructed in easement areas, City liability for the trail is still covered through the General Plan Liability Policy; however, non -trail related liability will still remain the responsibility of the underlying property owners. Mr. Hogan further clarified that the proposed project is designed for large parcels; that it is a voluntary policy; that it would not apply to a person who would desire to build a home on their own lot; and that it would only apply if one were to have subdivisions of land. At this time, the Public Hearing was opened. Mr. Larry Markham, 41045 Enterprise Circle relayed that he is in favor of the project and noted that the proposed project would cut the density in half for the vast majority of the area with the exception of the parcels that are immediately adjacent to Ynez; and that it would allow flexibility on how to site the parcels with regard to clustering. At this time, the Public Hearing was closed. MOTION: Commissioner Guerriero moved to approve staff's recommendation. Commissioner Mathewson seconded the motion and voice vote reflected unanimous approval. It was the consensus of the Commission to combine Item No. 5 and 7. / 5 Public Necessity and Convenience Findings 29676 Rancho California Road, Target Retail Building RECOMMENDATION 5.1 Approve Findings of Public Convenience Per the request of Commissioner Guerriero, Item No. 7 will be reviewed after Item No. 5 7 California Road Associate Planner Long presented a staff report (as per agenda material), noting the following: • That the proposed project is for a minor CUP that includes the Public Necessity and Findings for Target to sell beer and wine on site; • That the separation of criteria in the Development Code requires 500 feet separation from any schools, parks, hospitals, or religious institution; • That staff was able to make the findings and recommends the approval for a minor Conditional Use Permit (CUP) as well as the findings for convenience; RAM1nutesPC\042104 • That at this time, Target does not sell any alcohol or liquor; and that this is its first proposal. At this time, the Public Hearing was opened. Ms. Beth Aboulafia, 260 Calitornia Street, representing Target, relayed the following: • That Target started selling wine at its stores in California two years ago; • That currently there are 40 stores in Northern California that are licenses and have been selling wine; • That due to its success, Target started expanding the program to its stores in Southern California; • That Target has not had any problems or violations with selling to minors at any of the stores that have already been licensed in California; • That the application is for a Type 20 off site beer and wine license; • That there will be no consumption on the premises; • That although its a beer and wine license, Target will only be selling wine; • That all Target Stores have only been selling wine; i • That the sales of wine will only represent 3% of sales; but that it would be a complement to the food and beverage products that Target currently has in its market section and will be a convenience to Target's customers; • That Target employees will be provided a training program relating to alcohol and beverage sales that is specific to the laws and regulations to California; • That there have been no objections from the few neighboring residents; • That there have been no objections from the Police Department; • That wine bottles will be located in the market section of Target; At this time, the Public Hearing was closed. Commissioner Guerriero is of the opinion that there is no need or convenience to approve a Type 20 beer and wine license. For Commissioner Olhasso, Ms. Ubnoske relayed that currently there are no plans for redevelopment in the Target Center. Commissioner Mathewson expressed concern with approving another license for beer and wine sales in the area. RAMinutesPC\042104 4 For Commissioner Mathewson, Ms. Ubnoske relayed that when the state turned the jurisdiction over to the Cities, they did not give any criteria; and that the City Attorney developed the criteria for staff that is fairly consistent with other jurisdictions across the state. Commissioner Chiniaeff expressed concern with denying the proposed item stating that the census tract boundary is arbitrary and that if the City is going to allow establishments to sell alcohol in commercial zones (which is established in the zoning ordinance), that the City should be consistent and; therefore, either allow more establishments to sell alcohol, or that if the Commission is of the opinion that there is over -concentration of Type 20 licenses, then the zoning ordinance should be changed; and that it would be inequitable to allow some stores to sell and others to not sell. Chairman Telesio is of the opinion that staff should be reviewing the zoning ordinance; that he finds it difficult to approve these findings of convenience for large box type stores and deny sales to smaller outlets. For the Commission, Ms. Ubnoske relayed that changing the zoning ordinance to not permit alcohol sales in commercial zones would be a huge detriment to economic development. Assistant City Attorney Curly relayed that the Commission has the ability on each discretionary land use decision to look at the specific criteria. MOTION: Commissioner Chiniaeff moved to approve the findings of Public Convenience. Commissioner Olhasso seconded the motion voice vote reflected denial with the exception of Commissioner Chiniaeff who voted yes. MOTION: Commissioner Olhasso moved to deny PC Resolution No. 2002-019 due to the fact that the nature of the proposed use is detrimental to the health, safety, and general welfare of the community because the census tract is over -saturated with liquor licenses at this time. Commissioner Guerriero seconded the motion and voice vote reflected denial of Minor Conditional Use Permit (CUP) with the exception of Commissioner Chiniaeff who voted No. Commissioner Chiniaeff requested that staff have the City Council evaluate their commercial uses as related to alcohol permits. PC RESOLUTION NO.2004-019 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION PA NO. 03-0726, A REQUEST FOR MINOR CONDITIONAL USE PERMIT FOR A TYPE 20 (OFF -SALE BEER AND WINE) ALCOHOL LICENSE FOR TARGET LOCATED AT 29676 RANCHO CALIFORNIA ROAD, AND KNOWN AS ASSESSORS PARCEL NO. 921-320-053. RAMinutesPC\042104 5 Continued from April 7, 2004 6 Planning Application No PA02-0717 a Conditional Use Permit and Development Plan to 315754 Enfield Lane Associate Planner Fisk presented a staff report relaying that at the request of the Planning Commission, the applicant prepared additional propagation maps via overhead displaying the following: • Coverage without the proposed antenna facility; • Coverage with an antenna at 39 feet at the proposed site; • Coverage with an antenna at 50 feet at the proposed site; • Coverage with an antenna at 50 feet if the facility were located at Riverton Park; • Coverage with an antenna at 50 feet if the facility were located at San Diego Aqueduct vents; • Coverage with antenna at 50 feet if the facility were located on residential property east of Butterfield Stage Road; • That the applicant prepared new photo simulations which include two additional live palm trees planted near the proposed monopalm; and that this would be a total of four (4) new live palm trees. At this time, the Public Hearing was opened. Mr. Gil Gonzales, 150 Paularino Avenue, representing Cingular Wireless, noted the following: • That with an antenna at 39 feet at the proposed site would include a 45 foot monopalm and that this would include holes in coverage and would not allow connection to the site to the north/west and does not extend as much coverage to the west as desired. At this time, Mr. Gil distributed additional pictures of alternative sites that were considered by Cingular Wireless, which also included a list of the properties that were investigated. Mr. Mashesh Kolush, 150 Paularino Avenue, Radio Frequency Engineer for Cingular Wireless, further clarified line of site technology and RF emissions. For the record, Chairman Telesio noted that the Commission understands the concerns of the resident's; but that Federal Law precludes the Commission from making decisions in regard to radiation emissions. The following individuals spoke against the proposed project for the following reasons: i Mr. Leonard Cole 40360 Windsor Road RAMinutesPC\042104 6 Mr. Kenneth Peterson Ms. Kathleen Gerber Mr. Brian Gerber Ms. Valesta Ayer Ms. Roma Stromberg 40396 Windsor Road 40433 Windsor Road 40433 Windsor Road 40325 Windsor Road 40384 Windsor Road • That the proposed project is a commercial venture at the expense of the neighborhood; • That the proposed property has been excavated; that the property is not stable; and that there have been mud slides with heavy rains; • That the released emissions from the cell tower could be noisy and dangerous; • That it does not appear to be a strategically planned effort; • That property values could potentially diminish due to the proposed project; • That the proposed project will be unsightly to look at every day; • That there are a significant amounts of cell towers and that there is no real need for anymore; • That there has not been a visual impact study, view shed analysis, or line of site analysis performed; • That the proposed project is inconsistent with the City's "Procedures for Cell Tower Impact Analysis". Mr. Gonzales relayed the following in response to residents' concerns: • That Cingular Wireless investigated the entire area and it was determined that the proposed area is in the center of the search ring; that the height has also been determined with RF propagation maps and what Cingular Wireless is trying to cover; and that Cingular Wireless is trying to provide coverage for the 300 tract homes to the south; • That a generator would only be used if the power were to completely fail; • That the noise that would be heard would be similar to a computer fan; • That Cingular Wireless hired areal estate consultant firm to evaluate the property values of homes that are within'h mile radius of Cingular Wireless Cell Sites; and that it was determined that property values did not decrease; • That the proposed project would emit the same amount of EMF radiation as a baby monitor; and that one would be exposed to more EMF radiation by standing too close to the television; RAM1nutesPC\042104 • That Cingular Wireless will be complying with the California Public Utilities Commission; • That there will be SCE permanent service to the site; and that a generator would only be used if all the power were to go down by some type of disaster or unknown reason; and that there would not be a generator running fulltime; That the proposed monopalm will have a security lock and a sensor that will alert Cingular Wireless 24 hours a day, seven (7) days a week. At this time, the Public Hearing was closed. For Commissioner Mathewson, Mr. Fisk noted that this Item No. was noticed through the newspaper and that individual agencies were sent notice of intent to adopt a Mitigated Negative Declaration. Commissioner Mathewson relayed that it would be his opinion that the issues of concern that were raised by residents in regard to aesthetics, noise, and property values is not significant, but that in regard to screening efforts, would request that the proposed project be lowered to 39 feet; and that this would allow the proposed monopalm to blend in better with the surrounding palms. Commissioner Guerriero concurred with Commissioner Mathewson's comments including the height from 50 feet to 39 feet. Commissioner Olhasso echoed the previous comments. Commissioner Chiniaeff agreed that the height could be lowered to 39 feet and suggested that staff work with the landscape architect to add a variety of palms. Chairman Telesio agreed with all of the above comments. Mr. Fisk noted that the distribution date for the Negative Declaration was December 11, 2003. MOTION: Commissioner Chiniaeff moved to approve staff's recommendation with the condition that the palm be lowered from 50 feet to 39 feet; that there be a variety of palm trees planted, and that the number of trees that are being added around the wall be increased from two to four and be of the same type or variety that the pole is proposed to be. Commissioner Olhasso seconded the motion and voice vote reflected unanimous approval. PC RESOLUTION NO.2004-018 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO PA02-0717, A CONDITIONAL USE PERMIT/DEVELOPMENT PLAN TO CONSTRUCT AND OPERATE A WIRELESS TELECOMMUNICATIONS FACILITY WITH THREE (3) ANTENNAS HOUSED WITHIN THE BULB PORTION OF A PROPOSED FIFTY-SIX FOOT HIGH ARTIFICIAL PALM TREE AND FOUR RAMinutesPC\042104 8 OUTDOOR EQUIPMENT CABINETS WITHIN A 310 SQUARE FOOT BLOCK WALL ENCLOSURE AT 31575 ENFIELD LAND, GENERALLY LOCATED ON THE SOUTH SIDE OF ENFIELD LAND, APPROXIMATELY 3,200 FEET EAST OF RIVERTON LANE (APN 957-170-012). At this time, the Commission took a ten minute break. New Items This item was addressed on pages 3, 4, and 5. California Road 0 Associate Planner Fisk presented a staff report (as per agenda material), noting the following: • That the proposed use is consistent with the General Plan designation of business park and zoning designation of the Light Industrial; • That the building meets the minimum setback requirements of the Development Code and the proposed lot coverage of 28.5 percent (based on the overall lot acreage of 5.69 acres) is well below the maximum allowed lot coverage of 40 percent; • That staff determined that 98 parking spaces are required to serve the proposed building while 99 spaces will be provided; • That access to the site will be provided from two existing drive aisles off county center drive; • That a new drive aisle behind the proposed building will provide a connection between the two existing drive aisles for a loop drive around the proposed building; • That the Public Works Department determined that the impacts are consistent with the traffic volumes projected for the site by the General Plan EIR; • That the Fire Department determined that there is proper access and circulation to provide emergency services to the site; RAM1nutesPC\042104 9 • That the proposed office building design is consistent with the Development Code and Design Guidelines, and is compatible with the industrial and office buildings in the surrounding area; • That the landscape plan conforms to the landscape requirements of the Development Code and Design Guidelines; • That an initial study was prepared and indicated that the project could have potentially significant environmental impacts related to archeological and palentological resources unless mitigation measures are included as Conditions of Approval; That staff is recommending adoption of a Mitigated Negative Declaration for the project. For Commissioner Chiniaeff, Mr. Fisk relayed that if anything is found during the excavation of the project the City would be notified. At this time, the Public Hearing was opened. Mr. Ed Mc Ardle, architect representing The Garrett Group, relayed that the concrete will be tilted -up and the paint will be a topey-tan color. At this time, the Public Hearing was closed. MOTION: Commissioner Guerriero moved to approve staff's recommendation. Commissioner Olhasso seconded the motion and voice vote reflected unanimous approval. PC RESOLUTION NO.2004-020 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA03-0443, A DEVELOPMENT PLAN TO CONSTRUCT A 29,526 SQUARE FOOT OFFICE BUILDING ON 5.69 ACRES LOCATED ON THE SOUTH SIDE OF COUNTY CENTER DRIVE, APPROXIMATELY 1,500 FEET EAST OF YNEZ ROAD (APN 910-110-045). 0 Associate Planner Long presented a staff report (of record), relaying the following: That the applicant has provided various features encouraged in the Design Guidelines such as a variation in garage locations and Porte Cocheres; That Plan One (1) includes a trellis on the East Coast Traditional as well as a recessed garage; • That Plan Two (2) includes a mid -deep recessed garage and a Porte Cocheres; RAMinutesPC\042104 10 • That Plan Three (3) does not include a deep recessed garage; however, that between the three plans, staff is of the opinion that there is sufficient variety; • That in regard to single -story product, staff listened to the previous minutes of the City Council which adopted the Design Guidelines and Specific Plan (SP), and it was determined that there is no specific language requiring single story products; however, it did state that it be determined by staff and/or the market; • That the proposed project is not proposing a single -story product; however, staff is of the opinion that there are various single -story elements within Plan One (1) and Plan Two (2), that meet the intent of the Design Guidelines; • That the Design Guidelines require corner lots to create 'Iwo front elevations'; that staff is of the opinion that the side elevations do not appear as a second front elevation on any of the corner lots; • That staff is of the opinion that the Monterey and Spanish Revival offer too many similarities; that staff recommended that the applicant use alternative materials to offer more variation; however, the applicant has not proposed any additional materials; • That Plan one (1) and Plan two (2) do not include a significant amounts of variation; • That staff is of the opinion that none of the projects include a strong focal point; and that all the garage doors proposed do not include a significant amount of variety. At this time, the Public Hearing was opened. Mr. Stephen Albert, 3635 Hayden Avenue, representing the applicant, noted the following: • Clarified how the Spanish Revival and the Monterey are different and do provide enough variation between the two; • That the in regard to roofing, the applicant is of the opinion that there is enough variation and that the applicant is satisfied with the proposed project; • That the material of the front doors will be of wood material; • That although the garage doors to not appear to be astoundingly different, there is some variation; and that the garage doors are segmented rollup windows. Commissioner Olhasso suggested that staff and the applicant explore options to enhance the garage doors, preferably a barn type style door. Commissioner Mathewson expressed concern in regard to massing in Plan Two (2). Commissioner Chiniaeff relayed that the Spanish Revival and the Monterey had too many similarities and also relayed that the elevations of the residences that front the street need to be addressed, especially Plan three (3). RAMinutesPC\042104 11 At this time, the Public Hearing was opened. Mr. Todd Brazen of Cast Group Architects, made the following comments: • That the Spanish Revival gives a rustic appearance; • That the Monterey style will have soft curves on the eaves, stucco detailing; that there will be curves on the second -story overhand on Plan Two (2); and that it will also have a different shutter and window design; • That the roof tile on the Monterey could be altered; and that there is a "S" the on the Spanish Revival; • That in regard to massing, from the street one will be able to see a variety of shades and shadows. Ms. Paula Lombardi, vice-president of development with Davidson Communities, relayed the following: • That she was disappointed that the color boards were not available to the Commission for review; • That the applicant is of the opinion that the requirements have been met in regard to the garage doors, elevations and differentials in the residences. Commissioner Olhasso offered the following comments: • That mixing up the proposed product on Brush Creek would help to diminish the canyon - like affect; • That changing the roof coloring on the Spanish Revival and/or the Monterey would help to diminish similarity on the two homes. Commissioner Guerriero offered the following Comments: • That he is in concurrence with staff in regard to Conditions of Approval No. 12, 15, 17, 19, 20. Commissioner Mathewson offered the following comments: • Reducing the massing on Plan Two (2) by eliminating the second -story over the front portion of the residence; • That the applicant address window spacing and windows with single shutters as well as the width of the entry doors; • That the Monterey Plan Three (3) first -story windows need more architectural treatments. I Commissioner Chiniaeff suggested the following: RAMhutesPC\042104 12 • That Plan One (1) and Plan Two (2) corner lots needs enhancement; • That the applicant provide additional shingle siding on the sides of the East Coast Traditional elevation; • That variation in roof material and color on the Spanish and Monterey elevations be changed; That variation in garage door design be provided. Ms. Lombardi relayed that she would be implementing the following: • Reduce the number of Plan Three (3) on Brush Creek; • Change the roof materials and color on the Spanish Revival and Monterey elevations and "S" tiles to flat tiles; • That the applicant will be providing a variation in garage door design; • That the applicant will consider implementing Conditions Nos. 12,15, 17, 19, and 20; that these conditions require arched focal points on the Spanish and Monterey elevations, varied foot planes for each floor plan, decorative garage doors, and additional materials on the Spanish or Monterey elevations to better distinguish between the styles and wrap siding around to the sides; • That reducing the massing on Plan Two (2) by eliminating the second -story at this time, would be a major rework of the whole second -story; • That the applicant will explore the option of minimizing the number of Plan Two (2) and Three (3) adjacent to one another; • That the applicant will explore the option of revising corner lots to have them appear as a second front elevation, such as materials, arched focal points, courtyards, and patios. At this time, the Public Hearing was closed. The Commission requested that Mr. Long provide the landscape plans, streetscape plans and colors board for the next meeting. MOTION: Commissioner Guerriero moved to continue this item to May 19, 2004 for redesign. Commissioner Chiniaeff seconded the motion and voice vote reflected unanimous approval. RAMinutesPC\042104 13 10 PC RESOLUTION NO. 2004- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO PA03-0725 A PRODUCT REVIEW FOR 99 DETACHED SINGLE FAMILY RESIDENCES WITHIN PLANNING AREA 2 OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUTH OF MURRIETA HOT SPRINGS, KNOW AS TRACT MAP 29661-2. Butterfield Stage Road within the Roripaugh Ranch Specific Plan, Planning Area 4B Associate Planner Long presented a staff report (as per agenda material), noting the following: • That the applicant is proposing a product review for 113 detached single-family residences with the Roripaugh Specific Plan (SP); • That staff worked with the applicant to ensure that all concerns have been addressed; and that the project does not meet the intent of the design guidelines; • That the applicant has not provided consistent plans showing that the products meet all of the development standards, primarily setbacks; • That staff would request that the Commission provide direction in regard to the rear yard setbacks along Planning Area seven (7); that Planning Area seven (7) is the open space lot on the southern portion of the panhandle; and that the SP require 25 foot setback for lots abutting Planning Area seven (7); • That the following is a list of staff's concerns that have not been addressed: o Four sided architecture; o Detail and/or variation between each style; o Two front elevations on corner lots; o Minimum setbacks standards (inconsistent dimensions); o Variation in the placement of garages has not bee provided; o Stucco finish is not consistent with the Design Guidelines; o Fencing at exposed corners is not consistent with the development standards, and silhouettes/roof do not provide significant variation; • That staff has concluded that the proposed project cannot be found consistent with the Design Guidelines and or development standards with the Roripaugh Ranch Specific Plan (SP) and recommends continuance for redesign. At this time, the Public Hearing was opened. RAMinutesPC\042104 14 Mr. M. J. Knitter, 20151 Birch Street, architect for Knitter and Associates, commenting on the following: • That the applicant has made an effort to revise and/or enhance the proposed project; • That the applicant chose three styles on the exterior that the applicant found to be the most popular and most sought after in Temecula; • That the applicant has provided enhanced sides and rears on 67 residences; • That the applicant is willing to make changes, comments, or revisions that staff may have; • That the applicant is of the opinion that the intent of the Design Guidelines have been met; • That the applicant has a wide section of roof tiles; and that the applicant could add colors if it is the will of the Commission. Mr. Stephen M. Albert, 3635 Hayden Avenue, relayed the following: • That the Plan One (1), Praire has an arch focal point which is made of brick and veneer on a brown coat of stucco. Mr. Kevin Everett, 3553 Hayberry Drive representing ASHBY, USA, noted that there are only a selective number of lots that provide a setback of 25 feet. At this time, the Public Hearing was closed. Commissioner Olhasso expressed concern with Plan Two (2), stating that it appears to be outdated. Commissioner Guerriero suggested that the applicant enhance the sides and rears of all plans. Commissioner Mathewson suggested providing additional windows on side elevations. MOTION: Commissioner Olhasso moved to continue this item to May 19, 2004 for redesign. Commissioner Guerriero seconded the motion and voice vote reflected unanimous approval. COMMISSIONER'S REPORTS Commissioner Guerriero thanked Ms. Ubnoske for the phone cards but that they are a few wrong numbers on them. Commissioner Olhasso requested a Planning Commission application for the next term. Chairman Telesio suggested that the Commissioners use the request to speak buttons. RAM1nutesPC\042104 15 PLANNING DIRECTOR'S REPORT No report at this time. At 10:30 p.m., Chairman Telesio formally adjourned this meeting to the next regular meeting to be held on Wednesday, May 5, 2004 at 6:00 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula. John Telesio Chairman Debbie Ubnoske Director of Planning RAMinutesPC\042104 16 MINUTES OF A REGULAR MEETING OF THE CITY OF TEMECULA PLANNING COMMISSION MAY 19, 2004 CALL TO ORDER The City of Temecula Planning Commission convened in a regular meeting at 6:02 P.M., on Wednesday, May 19, 2004, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Chairman Telesio thanked Eve Craig for the prelude music. ALLEGIANCE Commissioner Mathewson led the audience in the Flag salute. ROLL CALL Present: Commissioners Chiniaeff, Guerriero, Mathewson, Olhasso, and Chairman Telesio. Absent: None. Chairman Telesio announced that per the Fire Department Code, there is a legal capacity for only one seat per person and that if necessary there is overflow seating in the Main Conference Room. PUBLIC COMMENTS Ms. Carol Marsden, 30955 de Portola Road, expressed concern with an esthetically unpleasing Happy Mover van at the residence of 31580 Pio Pico; and stated that it is offensive to the neighborhood and would request that Code Enforcement explore the removal of the Happy Mover van. CONSENT CALENDAR 1 Agenda RECOMMENDATION: 1.1 Approve the Agenda of May 19, 2004. 2 Minutes RECOMMENDATION: RAMinutesPC\051904 1 2.1 Approve the Minutes of April 7, 2004. Chairman Telesio requested to move Item No. 6 before Item No. 5 MOTION: Commissioner Guerriero moved to approve the Consent Calendar and to move Item No. 6 before Item No. 5. Commissioner Mathewson seconded the motion and voice vote reflected unanimous approval. COMMISSION BUSINESS Continued from April21, 2004 Associate Planner Long presented a brief staff report (of record), noting the following: That staff has reviewed the revised plans and determined that while some of the concerns of the Planning Commission have been addressed, the following issues identified by staff and the Commission have not been addressed: o Conditions Nos. 12, 15, 19, and 20 have not been implemented; that these conditions deal with arched focal points, variation in the roof plans, and the use of additional materials such as brick for the Spanish or Monterey styles; o Massing on Plan Two (2) has not been addressed; o Window spacing and windows with single shutters have not been addressed; o Entry doors have not been expanded in width (optional doors are proposed, however, they do not vary in shape or width and glass was not proposed); o That the applicant has re -plotted the plans along Brush Creek Drive, however there is no net loss or gain of any single plan; That the elimination of the second -story portion of Plan Two (2) be added to the Conditions of Approval. That staff has prepared conditions of approval to include the remaining Planning Commission's recommendation and that staff is recommending approval as conditioned. At this time, the Public Hearing was opened. Mr. Bill Davidson, 1302 Camino Del Monte, of Davidson Communities relayed that the applicant does not concur with staff in regard to pulling the fence and pilaster back and would request to leave as conditioned, and is of the opinion that the proposed project is in conformance and is requesting approval of the plans as submitted. 8AMinutesPQ051904 2 Ms. Linda Beaudon, 22380 Alameda Del Monte, homes along the ridgeline and stated that she single -story residences in the proposed project. expressed concern with the lack of single -story was of the opinion that there would be more For clarification purposes, Mr. Long noted that the direction from the Planning Commission to the City Council was to require single -story products throughout the single family residential areas; that the City Council modified the language to state "as determined by the market' and that staff would be of the opinion that the proposed project has sufficient single -story elements and meets the intent of the design guidelines in the Specific Plan (SP). Mr. Long also noted that a single -story element would be a portion of the residence that is not two -stories high. At this time, the Public Hearing was closed. COMMISSION DISCUSSION Commissioner Chiniaeff relayed that it would be his opinion that the applicant has complied with many of the requests but does not agree with Condition of Approval No. 21, (fencing on corner lots shall be pulled back towards the rear on exterior corner lots to open up the exposed elevation to the street as determined acceptable by the Planning Director). Commissioner Guerriero echoed Commissioner Chiniaeff's comments and is in agreeance with staff's Conditions of Approval except for Condition of Approval No. 21. Commissioner Olhasso also echoed the previous two comments and expressed appreciation with the work that Davidson's Communities has done with the proposed project; and requested that staff notify the Planning Commissioners when the City Council makes substantial changes to their recommendations. Commissioner Mathewson concurs with the above mentioned comments but noted his concern with the two-story massing on Plan 2 and is of the opinion that the number of Plan twos (2) and threes (3) adjacent to one another has not been addressed and would request that staff explore the issue. MOTION: Commissioner Mathewson move staff's recommendation as presented as well as the deletion of Condition of Approval No. 21 as presented above. Commissioner Chiniaeff expressed concern with the removal of the second -story element on Plan Two (2). At this time, the Public Hearing was reopened. Mr. Davidson relayed that it would be his opinion the proposed project is in conformance of the Specific Plan. At this time, the Public Hearing was closed. Commissioner Guerriero seconded the motion and voice vote reflected approval with the exception of Commissioner Chiniaeff and Commissioner Olhasso who voted No. RAMinutesPC\051904 PC RESOLUTION NO. 2004-022 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA03-0725 A PRODUCT REVIEW FOR 99 DETACHED SINGLE FAMILY RESIDENCES WITHIN PLANNING AREA 2 OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUTH OF MURRIETA HOT SPRINGS ROAD, KNOWN AS TRACT MAP 29661-2 Associate Planner Long presented a staff report (of record), noting the following: • That staff reviewed the revised plans and it was determined that while the revised plans have addressed some of the concerns of the Planning Commission, a number of outstanding issues have not been addressed; • That staff has added some additional recommendations which have been included in the Conditions of Approval; • That the recommended enhancements are a result of comments from the Planning Commission hearing; • That a Resolution of Approval has been attached for your consideration; • That in reviewing the revised elevations staff has noted the following enhancements: o That the front elevation of each architectural style of Plan Two (2) has been revised to break up the wall plane above the garage; o That the left elevation of Plan Two has been revised to include one additional window on the second floor and the right elevation has been revised to include two (2) windows on the second floor; o That the left elevation of Plan Three (3) has been revised to include one additional window on the first floor and one additional window on the second floor; and that three additional windows have been proposed on the second floor of the right elevation; o That the left elevation of Plan Four (4) has been revised to include one additional window on the second floor and one additional window on the second floor of the rear elevation; • That the intent of adding additional windows would be to break up the large expanses of wall; That staff is recommending as a Condition of Approval, that the applicant provide only the enhanced elevations; that the standard elevation should not be used due to the language in the Specific Plan (SP), which states "articulation shall be provided on all RAMinutesPC\051904 sides of the homes ("four-sided architecture")'; that staff is of the opinion that the standard elevations do not meet the articulation or the four-sided architecture standards; • That the following issues identified by staff and the Planning Commission of items of concern, have not been addressed: o Additional variation of the garage placement and garage door style for each plan has not been proposed; o The appearance of two front elevations has not been proposed and; o The roof design/silhouette does not offer a significant level of variation within each plan. • That staff has added the Conditions of Approval to ensure these changes are made, which would bring each product into conformance with the intent of the Design Guidelines and that staff is recommending the Planning Commission approve the project with the attached Conditions of Approval. At this time, the Public Hearing was opened. Mr. M. J. Knitter, representing the applicant relayed the following: • That since the last Planning Commission meeting of April 21, 2004, the applicant has taken the comments of the Planning Commission and have enhanced a number of the areas on the sides and rears, revised the second -elevation on the second floor, moved the egress window (which was on the front of the window) and moved it to the side; and that smaller design element windows were added to the front; • That on all corner conditions, there will be a one-story plan; and that a gable could be added for enhancement purposes if it is the will of the Commission; • That six (6) garage door variations will be provided for the home buyer; • That the landscaping and fencing will be taken care of by the landscape architect; • That windows to sides were added to Plan Two (2), Plan Three (3), and Plan Four (4); • That in regard to the four-sided architecture, the applicant is of the opinion that the front elevations of all plans comply with the intent of the Architectural Guidelines; • That there will be enhanced elevations on the rear of every residence along the ridgeline, every residence that abuts the street, and on all corners; • That on Plan One (1) the applicant would request to stay with the ridge running front to back; • That on Plan Two (2) there will be a hip roof condition which will be on all three of the elevations; RAMinutesPC\051904 5 • That on Plan Three (3) there will be a hip roof on the front; that on the side of the elevation the rear is a gable roof and that if it were the will of the Commission a hip could be added to the back 3b which would match the front of the b; • That on Plan 4, there will be a hip roof on all three elevations; • That on the Spanish Revival, the applicant would propose to use a lace finish on stucco versus a 20/30 sand finish noting that a 20/30 sand finish is difficult to use, extremely expensive and that the applicant would like to avoid the call back that the 20/30 sand finish will entail; • That the applicant would request to use an "S" the concrete tile roof on the Spanish Revival versus a barrel tile clay roof; • That if it were the will of the Commission, the applicant could add a hip on the profile of the roofs on 3b. Director of Planning Ubnoske clarified that the Design Guidelines for Spanish Revival call out for a Barrel Tile clay roof. Mr. George Zeeber, representing Meeker Companies noted that he needed clarification for the following Conditions of Approval: • Item No. 30 relating to paseos: For Mr. Zeeber, Mr. Hazen relayed that Item No. 30 is based on the terms of the development agreement and the Conditions of Approval of the Specific Plan. Mr. Long further clarified that the master developer has some responsibility to implement the paseos and landscaping in various areas prior to the individual merchant builders being able to pull building permits. • Item No. 32, 45, and 47. Ms. Ubnoske clarified that Item No. 32, 45, and 47 would not be for private lots. Mr. M. J. Knitter relayed that he will work with staff to enhance the sides on corner lots to give the appearance of a second front elevation. At this time, the Public Hearing was closed. Commissioner Olhasso expressed disappointment with the proposed project and suggested that the applicant work with staff to improve the outdated appearance of the residences. MOTION: Commissioner Olhasso moved to continue this item to an indefinite period of time. This motion died for a lack of a second. RAMinutesPC\051904 6 Commissioner Guerriero also expressed disappointment with the proposed project stating that a lot of time and effort has gone into the implementation of the Design Guidelines and the Specific Plan (SP) and queried why the Design Guidelines and Specific Plan are not being followed. Director of Planning Ubnoske stated that staff is satisfied with the project as conditioned; that if the Planning Commission were to approve the proposed project with the conditions that staff has placed on it, it would then be consistent with the Specific Plan (SP); and that the other option would be to continue this item off calendar to have the applicant continue to work with staff. Commissioner Olhasso apologized to staff, the Commission, and to the developer, but noted that she would not be able to approve the project as proposed. MOTION: Commissioner Mathewson moved to approve staff's recommendation. Commissioner Chiniaeff seconded the motion subject to the proposed conditions stated by staff, that the land developer construct the paseos as it is required in the existing Specific Plan, and that the applicant upgrade for an architectural elevation for all side lots on corners where they occur on all plans. Commissioner Mathewson amended his motion to include Commissioner Chiniaeff's requests voice vote reflected approval with the exception of Commissioner Olhasso and Commissioner Guerriero who voted No. New Items 5 PC RESOLUTION NO. 2004-023 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA03-0634 A PRODUCT REVIEW FOR 113 DETACHED SINGLE FAMILY RESIDENCES WITHIN PLANNING AREA 4B OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUGHT OF MURRIETA HOT SPRINGS ROAD, KNOWN AS TRACT MAP 29661-5 955-050-017) This item will be addressed after Item No. 6 per the request of the Commission. 6 Planning Application PA03-0534 submitted by McArdle and Associates Architects is a Development Plan to construct an 18,981 square -foot, three-story office building on 1.01 acres Located in the north side of Ridge Park Drive, south of Rancho California Road. (APN: 940-310-027) Associate Planner Long presented a staff report (as per agenda material), noting the following: That the proposed project is for a three-story office building; and that it is located on the site interior loop portion of Ridge Park Drive that wraps around the site; RAMInutesPM051904 7 • That there are two existing transformers located on each side of the driveway entrance; that due to slop restraints it would not be feasible to relocate the driveway; and that the applicant has proposed plantings around the transformers to soften their appearance; • That the first floor of the building includes underground parking which provides direct access into the building via elevator and stairs; • That there will be vehicular access to the first floor parking structure on the east and west sides of the building which creates two-way circulation throughout the project site; • That the project requires 57 parking spaces which are being proposed by the applicant; • That the applicant is proposing to exceed the Floor Area Ratio (FAR) standard which is .40; and that the applicant is proposing .45 FAR; • That staff is of the opinion that the proposed project includes exceptional materials, design, and landscaping that would qualify the project for an increase in FAR; • That the elevations that are included in the Commission packet are for a blue reflective glass and that the applicant has revised it to a green color (at this time a sample was distributed to the Commission); • That the proposed project is exempt from California Environmental Quality Act (CEQA) and that staff would be recommending approval. For the Commission, Fire Marshal McBride relayed that the proposed project meets the fire code requirements under section 903 of the fire code as well as meeting the practicality of the requirements; that the Fire Department will have access to both sides of the building as well as the front of the building for aerial apparatus; and that the Fire Department is of the opinion that they could adequately protect both the occupants and building. MOTION: Commissioner Chiniaeff moved to approve staff recommendation. Commissioner Guerriero seconded the motion and voice vote reflected unanimous approval. PC RESOLUTION NO.2004-026 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA03-0534M A DEVELOPMENT PLAN FOR A 29,622 SQUARE FOOT THREE STORY OFFICE BUILDING ON 1.01 ACRES, LOCATED ON RIDGE PARK DRIVE, SOUTH OF RANCHO CALIFORNIA ROAD, KNOWN AS APN: 940-310-027 New Item 5 RAMInutesPM051904 Assistant City Attorney Curly relayed that the applicant posted photo simulations of what is perceived to be the after affect. At this time the Commission took a 15 minute break. Assistant City Attorney clarified what a Public Hearing is stating that the Planning Commission will be making decisions based on the City's laws, State Planning and Zoning Laws, and Federal Laws; and also explained Religious Land Use and Institutionalized Persons Act (RLUIPA). For the Commission, Ms. Ubnoske clarified what correspondence the Commission should have. Associate Planner Harris presented a staff report (as per agenda material), noting the following: • That the applicant is proposing a Conditional Use Permit (CUP) and Development Plan to construct, establish, and operate a 24,287 square foot church facility including a sanctuary, multi -purpose room, classrooms, meeting rooms; and that the subject property is located on the north side of Pauba Road and 140 feet west of Corte Villosa; • That the proposed project is 4.72 acres in size and that currently the site is vacant; • That there are existing single-family residences to the east that back up to the proposed property line; • That the north and west side of the proposed project is vacant and to the south there are existing single-family residential residences, part of the Paloma Del Sol Specific Plan (SP); • That the facility has been sited in the center of the property so as to reduce impacts on adjacent properties; that approximately 170-foot wide setback has been achieved between the building and the eastern property lines; that setbacks of 108 feet and 170 feet have been achieved from the north and west property lines; and that these setbacks far exceed the minimum 10-foot wide setback that is required by the Development Code and that staff is of the opinion that the setbacks serve as ample buffers between adjacent residences and the proposed facility; • That there will be a 20 foot landscape buffer proposed along the eastern property line; • That there will be a 10' to 20' wide landscape buffer on both the north and the west sides of the property; • That in addition, the applicant is proposing 18' tall parking lot poles with cut-off fixtures that would force the light downward into the parking lot area and to the landscaped area to the east; RAMinutesPC\051904 9 • That landscaping being proposed will be adjacent to each side of the two driveways that would serve to screen the parking lot from Pauba Road; • That a colonial architectural style is being proposed for the church facility; that a cupola is being proposed out towards the front of the structure that will serve to breakup the roofline; and with the cupola incorporated into the structure it would be 50 feet tall, which complies with the building height requirements in the very low zoning district; • That the height and scale of the proposed church facility will be different from the surrounding residences; however, with the large building setbacks and landscaped buffers being proposed, staff is of the opinion that the facility will be compatible with the surrounding single-family residences; • That the building will be covered in brick to give the appearance of a colonial architectural element; that it will be a cross cable building style with the gable ends treated with decorative columns and siding, and decorative window treatment to bring out the architectural style; • That the proposed church facility will be constructed as a stake center; that the a Stake center accommodates three church wards; and that a ward consists of approximately 100 families or 500 to 600 people; • That a sanctuary area, offices, a multipurpose area with a stage, a basketball court area, a variety of Sunday school classrooms, and meeting rooms are being proposed; • That based on calculations provided by the architect, there will be 287 fixed seats proposed within the sanctuary area; and that the Development Code requires 96 on site parking spaces (overflow parking has been factored in); that in terms of parking, the applicant complies with the Development Code; • That non -fixed seating will be provided for overflow potential in the multipurpose room when necessary; • That staff determined that the project complies with all other applicable Development standards such as building height, lot coverage, and landscaping; • That there was an initial study performed for the project site resulting in three (3) impacts identified that had potential to be significant, Air quali , Cultural Resources, and Transoortationlrraffic; however, mitigation measures have been applied to them which have subsequently reduced them from being significant; • However, there have been mitigation measures specified in the traffic study, the first of which is a half -width improvement of Pauba Road along the entire width of the project site; the second mitigation measure would be a locked gate across the eastern property line to prohibit vehicles from entering during the evening hours, and that the last item would be the payment of both TUMPF and signal mitigation fees; RAMinutesPC\051904 10 That the applicant provided a new operational statement (see staff report) which further clarifies how many people will be associated with the various activities on the property; and that based on the new operational statement provided, staff has drafted an additional Conditional Use Permit (CUP) and Conditions of Approval (see staff report). For Commissioner Olhasso, Mr. Harris relayed that it is his opinion that the surrounding residences have received an operations matrix. For Commissioner Mathewson, Director of Planning Ubnoske clarified that as a result of the new statement of operations and the changes to the Conditions of Approval, a temporary use permits is not required for any of the uses, and that staff reviewed the detailed revised statement of operations and concurred that the activities and events could be accommodated in the proposed building. For Commissioner Chiniaeff, Ms. Ubnoske relayed that the applicant would not require the use of a temporary use permit for the bi-annual Stake Conference. For Commissioner Chiniaeff, Principal Engineer Moghadam relayed that at ultimate build -out. Pauba Road would be able to carry 31,000 vehicles a day; that if there are any delays of traffic due to the proposed project, it will be at the driveways of the proposed project, noting that there will be full movement from both driveways. Mr. Moghadam also relayed that a Level of Service (LOS) D would condition a project for signalization; and that the CIP has a design underway for Rancho Vista and Meadows Parkway which will be going to bid in the near future. Deputy Director Parks clarified that the widening of Pauba Road in front of Linfield School is a condition on its project; and that the Temecula Valley High School expansion project will be conditioned to widen Pauba for their whole frontage. For Commissioner Guerriero, Mr. Moghadam relayed that the Level of Service (LOS) on Pauba Road with the improvements of Temecula Valley High School factored in, would be A or B. At this time, the Public Hearing was opened. Mr. Kent Cornwall, of Cornwall Associates Architects, provided the following history and thoroughness of the process up until the Public Hearing: • That the church acquired the property in 1997 with the intent of building this type of facility on the property; • That Cornwall Architects was contacted by the applicant in early 2002 when it was ready to move forward with the project; and a pre -application was started to inquire what the City's procedures would be as far as building plans, appearance, and statement of operations; • That the applicant received comments from staff requesting not typically required items such as an acoustical study, a lighting study, and a traffic analysis; and at that time, the concerns of staff were ingress and egress of the property, and the comparison of the FIAMinutesPC\051904 11 zone use (which is very low density residential) and the proposed use being for a church; and that staff requested other standard requests; That at that time, Cornwall Architects recommended that the applicant meet with the surrounding neighbors (particularly the neighbors adjacent to the east) early on to discuss the proposed project; That Cornwall Architect has been working with these type of facilities (churches) for over 30 years and understand the process, concerns, and sensitivities of the neighborhoods they enter into; That on August 4, a meeting was scheduled with the residences of Corte Villosa who would be most affected by the proposed project; that representatives of the church and construction people were present to discuss the proposed project; that renderings, floor plans, and a video showing examples of the quality of construction and maintenance that will be involved was shown; and that at that time, the church representatives took four (4) pages of notes of concerns expressed by residences; and that as a plans developed, the church attempted to incorporate mitigating measures to the neighbors concerns into the project; • That after a result of much discussion with the neighbors, the landscape buffer that was on the east property line was increased; that the landscape fingers that are on the last row of parking was doubled; and that the applicant worked with staff to install the west driveway; • That the applicant went through the process with the design review committee and the City, in the fall of 2002; and that during that time period, the applicant developed those standard requirements, preliminary grading plans, landscape plans, material boards, detailed floor plans, elevations, building sections, soil reports, and the requested acoustic and photometric studies, and traffic analysis; • That a Development Review Committee (DRC) meeting was held in February of 2003; and that at that time, staff recommended a neighborhood meeting (one that would be noticed) so that the applicant could receive public input early on in the process; • That the first public meeting announced by the City was held in March of 2003; that the major impacts of concern that came out of that meeting was security, evening and morning noise, lighting, future development of the property to the north of the proposed property (which belongs to the church), screening, height of the steeple, inadequate landscape buffer, home depreciation, traffic concerns, and the concern that the church would use other uses outside the statement of operation; That as a result of the March 2003 meeting, further adjustments were made to the design such as parking lot light poles that were on the east property line were moved at the end of the landscape finger so that it would be 40 feet away from the property line of the adjacent homes; that the steeple was lowered by two -stories (20 feet); that a traffic study was initiated; that the church committed to sell the excess property so that there would be no concern that there would be some expansion of the proposed facility, but that until the church has a Conditional Use Permit (CUP), would the church be able to R.WinutesPC\051904 12 commit to sell the remaining property; that a gate was added to the east driveway; and that a primary building entrance was proposed for the west entry; • That the revised documents were accomplished and resubmitted to the City in June; That per the request of staff, a second community meeting was held with the neighbors on September 11, 2003 to show the neighbors how their concerns were addressed; that the applicant listened to similar concerns of neighboring homeowners; that traffic was the most common expressed concern; that the applicant's traffic engineer was available to answer questions; and that new concerns arouse such as depreciating homes and the use of the property north of the proposed property; • That the applicant provided staff with a Phase 1 Cultural Resource Assessment Initial Study (which concerns archeological issues); • That a palentological study was provided; • That in January 2004, all documents had been provided and staff was satisfied; and that the process was set to go through California Environmental Quality Act (CEQA), staff, City Attorney, and the CUP hearing; • That the following are concerns that have been adjusted and what is currently in the project to mitigate and address existing concerns: o Site suitability; o Traffic; o Privacy; o Noise; o Parking lot lights; and o Property values. At this time, Mr. Cornwall addressed a letter that was referred to as May 12, 2004, from the homeowners of Temecula, Corte Villosa, noting the following: 1. Retaining wall: that the applicant will be engineering and installing a retaining wall, and if desired by the homeowners, that the applicant would also be willing to install a six-foot wrought iron fence on top of the wall so that when the condition of the properties being back filled against it, it would not have an 8 foot or 6 foot drop-off, down from the applicant's wall; and that the Church has offered to install the retaining wall at its expense. 2. Back -filling back yards: that the applicant would be willing to make back -fill material available from its site development at the time of the development; that they would allow access and encourage their graders to be used by the homeowners to install the back - fill. 3. Landscape and irrigation for reclaimed land: that the applicant would be willing to offer the homeowners landscaping and irrigation at a reduced rate. 4. Greenbelt: that the residences concurred that 20 feet between properties would be adequate; that most of the trees requested by the adjacent homeowners are huge and dense; and that the applicant would be willing to work with staff to come up with proper and acceptable landscaping for the proposed property. RAM1nutesPC\051904 13 5. Roofing material: that the applicant is willing to change the color of the roof. 6. Lightina: that the applicant is willing to work with staff in regards to parking lot lighting. Mr. Cornwall relayed. that the applicant has appreciated the communication between the applicant, staff and neighbors. For Commissioner Olhasso, Mr. Harris noted that the results of the analysis that was performed by the landscape architect would be in staff's report. For Commissioner Chiniaeff, Mr. Cornwall relayed that the gate on the east boundary would be closed at all times. For Commissioner Chiniaeff, Mr. Cornwall stated that the Church would be willing to be responsible for the wall, the fence and the landscaping; and that the drainage swale, existing wrought iron fence and the slope is not the church's property and would be the responsibility of the homeowners. For Commissioner Mathewson, Mr. Cornwall relayed the following: noted that the proposed retaining wall would extend to the 7th property line; and that if the homeowners were interested in the back fill, they could have it at no cost to them; and the applicant is willing to change the color of the roof, but that they would not be changing the materials; and that the applicant is open to any combination of light fixtures in the parking lot to address the concerns of lighting. For Chairman Telesio, Mr. Cornwall noted that the traffic survey was performed before the neighboring schools let out; and that if there is a concern in regard to entering the proposed area through the westerly gate during the evening times, the applicant would be willing to close the westerly gate in the evening. Mr. Rocky Snider, project manager for the LDS Church, relayed the following: • That staff delete Condition of Approval No. 13; • That on the evenings when activities conclude at 11:00 p.m., that the lights around the building remain on until the last person leaves 11:15 or 11:30; and that the eastern parking lot lights shall be turned off at 10:00 p.m. seven days a week; • That because a dance is considered a primary activity, the applicant would request that the Condition of Approval in regard to dances be modified to allow for more than one day per month and would also request that it open to other nights of the week other than Saturday night; • That in regard to Stake Conferences, the applicant would request that Condition of Approval No. 20 be deleted that it is covered under Condition of Approval No. 19. • That as soon as the applicant receives its Conditional Use Permit (CUP), the real estate department of the church would start the process of selling the property. Mr. Kevin Osborne, 32750 Pine Circle, Stake President, relayed the following: That a commitment has been made to sell the excess property; that as soon as the applicant receives its Conditional Use Permit (CUP), the real estate department of the church would start the process of selling the property; • That five (5) percent of the residents of Temecula are members of the LDS church; RAMinutesPC\051904 14 • That there is usually a 50 to 60 percent attendance of services every Sunday; • That the proposed building is designed for the members of the church but that the community is welcome to participate in the use of the building; and that there are many different events that are community oriented; • That the applicant are proponents of the Boy Scouts of America; and that there are seven (7) different troops located within the Temecula Stake and non-members are welcome to the scouting program; • That the proposed facility would also be used for a Blood Drive, where the whole community is welcome to participate; • That the proposed facility would also be useable for the community. The following individuals spoke in favor of the proposed project: Mr. Benjamin Graff Temecula Mr. Heber J. Hurd Temecula Mr. Brad Start Temecula Mr. Stewart Morris Temecula Ms. Larry Slussor Temecula Ms. Melanie Moore Temecula The above mentioned individuals spoke in favor of the proposed project for the following reason: • That the Church would be advocating honesty, integrity, and will teach citizens how to be responsible members of society; • That the Church would strengthen families and increase the quality of life for families in the neighborhoods; • That the proposed Church would help to build a better community; • That the dances at the Church would have 16 to 20 adult chaperone per day supervised in the dance and the parking lots; that there would be 100 to 150 youth per dance ages 14 through 18; that most of the individuals do not drive; that the dances will take place inside three sets of doors which will diminish the sound to the exterior; and that the youth attending dances would not be able to exit the building without parental consent; • That LDS Churches are built in residential areas and that it does not engage in money generating endeavors that may classify it as a business; • That the youth program teaches young people to become honest well adjusted adults; • That the Church of LDS will be a beautiful Church; and that they are always well maintained inside and outside and would be an asset to any community; The following individual spoke in opposition of the proposed project: Ms. Jenny Elliott Temecula Mr. Don McLaughlin Temecula Mr. Jim Johnson Temecula Ms. Beth Ceja Temecula Ms. Bobbi Corn Temecula RAMinutesPC\051904 15 Mr. Stephen Longo Temecula Ms. Rebecca Longo Temecula Mr. Tony Hardy Temecula Mr. Kenneth Ray Temecula Mr. David Kimbass Temecula Mr. John Wilshire Temecula Ms. Marjorie Gregory Temecula Mr. William Agnew Temecula Ms. Kristen Boano Temecula Mr. Chris Sorensen Temecula The above mentioned individuals spoke in opposition of the proposed project for the following reasons: • That the proposed LDS Church does not blend in with the surrounding neighborhood; • That since the proposal of the LDS Church, five (5) residents have relocated; • That the residents would prefer to have single-family units rather than a 24, 287 square foot church; • That their currently are 12 public institutions within a mile of the proposed area; • That the properties adjacent to the proposed building would be faced with hundreds of people coming and going and looking into the yards; • That there will be excess noise created by the cars and people coming from the proposed building; • The quality of life will be compromised by the proposed building; • That a 24, 287 square foot, 31 foot tall building will create a massing affect; • That the residents did not receive the operations matrix or the new draft of the Conditions of Approval (CUP); • That the drainage issue is a concern for adjacent residents; • That the proposed facility will block the view of many of the surrounding residents; • That the residents are concerned that the traffic analysis has not been adequately addressed; • That residents were of the opinion that the proposed property was zoned for custom ranch style homes; Director of Planning Ubnoske clarified that per the Development Code, there are a number of uses that are conditionally permitted in very low density zones such as mobile home parks, daycare centers, museums etc. • That the proposed facility deviates from the intent and the character of rural ranch development; • That no other areas of Temecula have the density of schools and churches concentrated as much as the proposed area has; • That air pollution is a concern; • That if the proposed facility is approved that it be dramatically scaled down; For Commissioner Guerriero, Mr. Cornwall relayed that the applicant would be willing to work with staff in adding more landscaping in front of the church; and that the applicant will be responsible for maintaining the retaining wall. RAMinutesPC\051904 16 At this time, the Public Hearing was closed. At this time, Commissioner Chiniaeff moved to extend the meeting to 11:30 p.m. Commissioner Guerriero seconded the motion and voice vote reflected approval. Commissioner Chiniaeff expressed concern of staff's ability to meet the second criteria of the Conditional Use Permit (compatibility with the surrounding area); and stated that he would be of the opinion that the proposed facility and/or any other type of public facility would not be compatible with the surrounding single-family residences. Commissioner Mathewson stated for the audience that he has been taking notes and takes every comment seriously. Commissioner Mathewson expressed some concern with the traffic that the proposed facility would be bringing but that overall was pleased with the proposed architecture; and noted his appreciation for the applicant's willingness to address many of the concerns of the community. Commissioner Guerriero echoed Commissioner Mathewson's comments advising that he would be in favor of the proposed project. Commissioner Olhasso commended the speaker's willingness to meet and invest their time; stating that she also appreciates the work that the applicant and staff have put into the proposed project. Chairman Telesio echoed the above mentioned comments. For Commissioner Mathewson, Deputy Director Parks relayed that currently the capacity of the road is 8200 and that at built out it would be 31,000 trips a day. Commissioner Chiniaeff stated that he also appreciates the applicant's willingness to accommodate the surrounding community; but that he has concerns with the overall massing affect that the proposed project would bring to the surrounding area. MOTION: Commissioner Mathewson moved to approve staff's recommendation, modifying the Conditions of Approval with respect to the operating hours by deletion of Condition of Approval No. 13, modifying Condition of Approval No. 18 to reflect that the proposed facility may operate 12 primary activities per year until 11:00 p.m., deletion of Condition of Approval No. 20, and that the modification of the roof color be worked out between staff and the applicant. Commissioner Guerriero seconded the motion and voice vote reflected approval with the exception of Commissioner Chiniaeff who voted No. COMMISSIONER'S REPORTS No reports at this time, PLANNING DIRECTOR'S REPORT No report at this time, RAMinutesPM051904 1 ADJOURNMENT At 11:30 p.m., Chairman Telesio formally adjourned this meeting to the next regular meeting to be held on Wednesday. June 2.2004 at 6:00 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula. John Telesio Chairman Debbie Ubnoske Director of Planning RM4inutesPC\051904 18 ATTACHMENT NO. 3 PLANNING COMMISSION STAFF REPORT (APRIL 21, 2004 AND MAY 19, 2004) RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Staff Report-1.doc 5 STAFF REPORT — PLANNING CITY OF TEMECULA PLANNING COMMISSION Date of Meeting: April 21, 2004 Prepared by: Dan Long Title: Associate Planner File Number PA03-0725 Application Type: Product Review Project Description: Planning Application No. PA03-0725, submitted by Davidson Communities, is a product review for 99 detached single-family residences within Planning Area 2 in the Roripaugh Ranch Specific Plan, located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road (Tract 29661-2). Recommendation: CEOA: Plan 1, two story 2,840 square feet (30 units) Spanish Revival (7 units) East Coast Traditional (13 units) Monterey (10 units) Plan 2, two story 3,178 square feet (33 units) Spanish Revival (9 units) East Coast Traditional (13 units) Monterey (11 units) Plan 3, two story 3,362 square feet (36 units) Spanish Revival (12 units) East Coast Traditional (11 units) Monterey (13 units) ® Approve with Conditions ❑ Deny ❑ Continue for Redesign ❑ Continue to: ❑ Recommend Approval with Conditions ❑ Recommend Denial ® Categorically Exempt ❑ Negative Declaration (Class) 15161 ❑ Mitigated Negative Declaration with Monitoring Plan ❑ EIR R:\Product Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\STAFF REPORT-l.doo 1 PROJECT DATA SUMMARY Applicant: Paula Lombardi, Davidson Communities Completion Date: February 20 2004 Mandatory Action Deadline Date: May 20 2004 General Plan Designation: Low Medium Residential (LM) Zoning Designation: Low Medium Residential (LM) Site/Surrounding Land Use: Site: Vacant North: South: East: West: Vacant Lot Area: 5,000 square foot minimum (range: 5,025 sq. ft —13 080 sq ft.) Total Floor Area/Ratio Landscape Area/Coverage Parking Required/Provided 2 covered enclosed spaces (20' x 20') BACKGROUND SUMMARY 01. Staff has worked with the applicant to ensure that all concerns have been addressed, however, various issues have not been resolved to the satisfaction of staff. See Attachment "47 (letter to applicant dated January 21, 2004), requesting revisions. On January 22, 2003, staff met with the applicant to discuss staff's comment letter. Staff discussed the requirements within the Roripaugh Ranch Design Guidelines, including the single story, stucco finishes, additional materials such as stone or brick, the possibility of adding an additional floor plan and choosing a different style in order to distinguish between the styles and focal points to show importance. It was also discussed that the Design Guidelines require four sided architecture, two front elevations on corner lots and variation in the roof plan and silhouette. The applicant feels the proposed design is consistent with the Specific Plan and has requested a public hearing before the Planning Commission. RAProduct Review\Roripaugh Ranch SPIDavidson Communities Tr 29661-2, PA03-0725\STAFF REPORT- Ldoc 2 ^ ANALYSIS `( l/ The applicant has proposed three (3) floor plans and three (3) architectural styles. The applicant has chosen the option of Design Group E (pg. 4-97) from the Specific Plan, which allows the use of one style from the Design Groups A-D (Attachment 2). The applicant has provided many features encouraged in the Design Guidelines such as a variation in garage locations and Porte Cocheres. Each plan includes a varied garage setback ranging from 14 feet to 21 feet (Plan 1), and 33 feet (Plan 2). Plan 3 is not considered an architectural forward product, even though the garage is slightly recessed (4 feet proposed, 8 feet minimum is required to be considered architectural forward) behind the living space. Plan 2 also includes a Porte Cochere in conjunction with the deep recessed garage, which provides additional articulation as well as a single story element along the street scene. A trellis is proposed over the garage on Plan 1, which functions as an accent element for the East Coast Traditional style. Staff feels that the project does not entirely meet the Design Guidelines, however, if enhancements are provided, the project could be found to be consistent with the Design Guidelines within Specific Plan. Staff has broken down the comments into the following categories: The architecture (single story, corner lots, variation between styles, materials, roofing, entries, doors, four sided architecture, windows, and stucco finish), fencing, and landscaping. Architecture Sinqle Storv: A single story product has not been proposed. The Specific Plan is not clear whether single story products are required in all planning areas. The language in the Specific Plan allows the issue to be resolved by staff. Staff feels that the project provides various single story elements, which break up the street scene, as well as, the overall silhouette of the planning area. Plans 1 and 2 include mid to deep recessed garages which break up the massing along the front elevation. Said plans also step the second story back away from the recessed garage as well as from the first floor wall plane on the side elevations. By stepping the second story back from the wall plane of the first floor, it will open up the side yards to additional light and provide single story massing along the street. Corner Lots: The corner lots do not appear to create a second front elevation. The Design Guidelines require corner lots to create 'two front elevations". Staff feels that the side elevations do not appear as a second front elevation. Staff has recommended that the applicant pull the fence and pilasters back towards the rear of the site to open up the side elevations, which would display the architecture, however the applicant does not agree with staff. By pulling the fence and pilaster back, it would open up the courtyard on Plan 3. Staff has used this technique on other projects along with the use of decorative walls with wrought iron fencing, trellises, and other decorative features to produce a second front elevation. As proposed, the applicant has all three floor plans on corner lots. Staff has recommended that the applicant provide a side elevation specifically for corner lots or provide an additional floor plan plotted on corner lots. Each side elevation of each floor plan, exposed to the street needs additional enhancement to satisfy the second front elevation standard. Variations of Style: The applicant has not provided sufficient variation between the proposed architectural styles. Staff recommended that the applicant propose a different architectural style, which will allow the styles to offer greater variation, however the applicant has decided to RAFroduct Review\Rorlpaugh Ranch SPOavidson Communities Tr 29661-2, PA03-0725tSTAFF REPORT-l.doc 3 maintain the proposed styles. Staff feels that the Monterey and Spanish Revival offer too many similarities in shape, form and materials that create a difficulty for providing variety between the styles. Staff suggested that alternative materials such as stone or brick be used to offer variation between the styles, however, the applicant has not proposed any additional materials. As proposed, staff feels there is too much stucco on the Monterey and Spanish Revival. While stucco is a typical element of these styles, staff feels that these styles are too complimentary and an alternative style should be used or alternative materials and forms should be incorporated to clearly distinguish between the styles. Roof & Silhouette: In order to provide a varied street scene, variety in each roof plan needs to be provided. Staff feels that the applicant has proposed roof plans and silhouettes that are too similar for each plan. While there are variations between the plans, the primary silhouette has not changed. Staff recommended significantly changing one roof plan of each plan in order to provide variation. The applicant has provided a good example of a variation in the roof plan that satisfies this concern on Plan 3; however Plans 1 and 2 do not include a significant amount of variation. The Plan 3 Monterey style includes a lateral roof as opposed to vertical (Spanish Revival and East Coast Traditional), which is the type of variation staff feels is necessary for each plan. In addition, the Monterrey and Spanish Revival proposed the same S roof the style. The Design Guidelines require Spanish tile roof for Monterey and Barrel tile clay roofing for Spanish Revival. Staff recommends the roofing to be changed as mentioned in the Design Guidelines along with changing one roof plan of each floor plan to significantly vary from the other plans in order to provide variety for the street scene. Focal Points: The Design Guidelines encourage focal points to show interest for entries and doors. Staff has requested the use of double doors, glass sidelights, surrounding frames and molding around the door as mentioned in the Design Guidelines. The applicant has not provided any double doors, doors with glass, or glass sidelights. The applicant has proposed a foam trim frame around the entry door for each East Coast Traditional Plan, however staff feels that additional enhancement is required for all plans and styles. The Design Guidelines state the following "Emphasis shall be placed on the design and type of entry door used. It functions as the major introduction to the introduction to the interior of the house and concern should be given on the image it creates:' Four -Sided Architecture: Staff has interpreted the four sided architecture requirement to mean that the architectural style is evident from any side of the residence. Staff feels that the applicant has not completely satisfied this standard. Staff recommends additional arched windows to be carried over where necessary, variation in the window trim and sills should be provided as well as, a variation in the materials. Staff feels the similarities of Spanish Revival and Monterey compound this issue. However, staff also feels that the East Coast Traditional style could enhance the side and rear elevations by adding and wrapping additional siding to the sides and rears. In addition, staff recommends that the applicant provide decorative windows sills on each elevation for each style to reflect the architectural theme and further satisfy the four sided architecture requirement. Stucco Finish: The Design Guidelines state that smooth plaster walls are a typical feature for Spanish Revival. While the Design Guidelines do not mention a specific stucco finish for Monterrey, staff's research has shown that typical Monterrey stucco finish is a light to smooth finish. The applicant is proposing a light to medium sand finish. Staff feels that a light sand finish provides the smooth appearance typical for Spanish Revival and Monterey. The stucco finish for East Coast Traditional style is not as specific; staff feels a light finish is adequate, however, typical East Coast styles primarily utilize siding material. RAProduct Review\Roripaugh Rauch SP\Davidson Communities Tr 29661-2, PA03-0725\STAFF REPORT-Ldoe 4 ^ Fencing ( ) The applicant has complied with the standards set forth in the Specific Plan; however there are some minor inconsistencies that need to be addressed. In addition, there is one element that the applicant and staff do not agree upon. The legend on the fence plan appears to show low slump stone walls between units. After speaking with the applicant, staff feels this is an error and that solid wood fencing was intended between units. The project has been conditioned accordingly. The paseo trail along lot one should include a low slumpstone wall for the first 20 feet and transition into a solid 6-foot slumpstone wall. The project has been conditioned accordingly. The primary issue that has not been agreed upon is the location of fencing on corner lots. Staff feels that fencing on corner lots should be pulled back towards the rear of the lot in order to open up the side yard and expose the architecture and provide the second front elevation as required in the Specific Plan. Staff has found this to be a success on previous projects, primarily where a courtyard is proposed because it adds a feature similar to a porch, albeit on the side elevation. The applicant has proposed a solid wall along the side elevation up to the front portion of the residence, thus blocking the majority of the architecture/residence. Staff feels the intent of the Design Guidelines is to open up the side yards to portray the architecture and appear as a second front elevation. A solid wall will close off the architecture and will not portray a front elevation. Landscaping The applicant has provided front yard landscaping consistent with the Specific Plan. In addition, the applicant has proposed decorative pavers along with colored concrete for the driveway. Staff feels this is a positive feature which will add variety to the street scene and add to the overall ambiance of the project. ENVIRONMENTAL DETERMINATION ® 1. The proposed project has been determined to be consistent with the previously approved (Negative Declaration) (EIR) and is exempt from further Environmental Review (CEQA Section 15162 subsequent EIR's and Negative Declarations). CONCLUSION/RECOMMENDATION Staff feels that the project needs to be enhanced in order to be found consistent with the Design Guidelines and the Specific Plan. While the applicant has complied with many of the standards and recommended guidelines, staff feels that additional enhancement is required in order to recommend approval. Staff feels that appropriate Conditions of Approval could be applied in order to make the findings for approval. Based on the analysis summarized in this report, staff has determined that the findings required for approval can be made with the appropriate Conditions of Approval. FINDINGS Development Plan (Code Section 17.05.010F The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the city. RAProduct Rcview\Roripaugh Ranch SFDavidson Communities Tr 29661-2, PA03-0725\STAFF REPORT-Ldoc 5 The proposed single-family homes are permitted in the Low Medium Density land use designation standards contained in the Roripaugh Ranch Specific Plan and the City's Development Code. The project is also consistent with the Low Medium land use designation contained in the General Plan. The site is properly planned and zoned, and as conditioned, is physically suitable for the type and density of residential development proposed. The project, as conditioned, is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the City Wide Design Guidelines, and fire and building codes. 2. The overall development of the land is designed for the protection of the public health, safety, and general welfare. The overall design of the single-family homes, including the site, building, parking, circulation and other associated site improvements, is consistent with, and intended to protect the health and safety of those working in and around the site. The project has been reviewed for, and as conditioned, has been found to be consistent with all applicable policies, guidelines, standards and regulations intended to ensure that the development will be constructed and function in a manner consistent with the public health, safety and welfare. ATTACHMENTS Plan Reductions — Blue Page 7 Roripaugh Ranch Design Guidelines Excerpt — Blue Page 8 3. PC Resolution No. 2004- — Blue Page 9 Exhibit A — Conditions of Approval 4. Letter to applicant dated January 21, 2004 — Blue Page 10 5. Response letter from applicant dated January 29, 2004 — Blue Page 11 RSProduct Review\Roripaugh Ranch MDavidson Communities Tr 29661-2, PA03-0725\STAFF REPORT-l.doe 6 ATTACHMENT NO. 1 PLAN REDUCTIONS R:\ProductReview\Roripaugb Ranch SP1Davidson Communities Tr 29661-2, PA03-0725tSTAFF REPORT-l.doc 7 Ej s d >.5 3.� . IttiWN3 Lf� ®' j [�T ®_�118 a a a 0 w _ ah Q�, 0 U , 0, ZIN x U z ED a H I z, iMNJ, W x V z x QD a o> C4Q � r - r• o r _ r , r , I g I 1, a N �I• J °0I U z ao ¢z a 0 �U) C) 0 H ¢ w a w a z 0 rl Q ¢ 0 H 0'' V h W x U z i N 1 0 Q Q-c i f U na 0 x z 0 d W .a LLB d z 0 Q H 0 U F-� N1 0 1 ? ATTACHMENT NO.2 RORIPAUGH RANCH DESIGN GUIDELINES EXCERPT R:\Product Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-07251STAFF REPORT-Ldoc 8 ASHBYUS&LLC FIGURE 4-53 EAST COAST TRADITIONAL -.f inspiration Photo: .The Keith Companies laa /c: N 0 T T 0 3 O A L E Design features: - Covered front porch entry - Multi -pane windows - Stucco trim detailing - Flat arch openings - Hip/gable combination roof shapes - Exterior plaster walls - Boxed overhangs ��-� '� .. < < 7 � T _� , � i �. E , � L��r: ,:, st, ,i el�t'ts ir±. — �.' � �r t) E s:, i i if3��F s'F �ijx� .s i � ��.i� ;4�„� f�v„�s�$r�, � _ i t:. t �,.�L{A - �„ �r3 �� h` I ' , � 4.. I q ��fr . _ -. FIGURE 4-60 in SPANISH REVIVAL Inspiration Photo: Design features: -Arched focal point - Exposed bearn headers - Recessed window - Wrought iron accent details - Alcoved entry - Barrel tile Gay roofing - Exterior smooth plaster walls - Ceramic Tile accents The Keith ComOanieah /C . N 0 T T 0 e OK_A L E DESIGN GUIDELINES Provide two color sets of the above at the scales indicated including a duplicate set of the color and materials board. In addition, provide six (6) sets of the above in reduced, 11" x 17" black and white format. I 4.10.3.3 Architecture Forward and Garage Standards The following standards shall apply to all residential Planning Areas, except as specified: "Architectural Forward" concept shall be incorporated into 100% of the homes in Planning Areasl0, 19, 20, 21, and 33A. "Architectural Forward" concept shall be incorporated into at least 500/9 of the homes in each of Planning Areas 1A, 2, 3, 4A, 4B, 12, 14, 15, 16, 17, 18, 22, 23, 24, and 31. This concept includes advancing the architecture of the living space forward on the lot while concurrently, the garage is held in place or further recessed. Residential dwelling units shall be designed to allow the living portion of the dwelling unit to be "positioned" forward on the lot so that the architecture of the garage will not dominate the street scene. • A variety of garage placement solutions shall be incorporated into the overall design of the homes. Minimum driveway length from the properly line to the garage door shall be eighteen feet (18') for front -entry garages in all Planning Areas and ten feet (10') from the property line to the garage edge for side entry garages in the L and LM Districts. Garage solutions that should be incorporated into the overall design are as follows: Shallow Recessed Garages (See Figure 4-62) Setting the garage back a minimum of eight feet (8) in relationship to the front of the house. Mid to Deep Recessed Garages (See Figure 4-63) ( Setting the garage back to the middle or rear of the lot. Third Car Side Loaded (See Figure 4-64) Setting for garage with side -loaded entry. This plan can only occur on larger lots. Side Entry Garages (See Figure 4-65) The use of side entry garages on lots at least 52 feet wide in order to break the continuous view of garage doors along the street scene. Third Car Tandem (See Figure 4-66) Setting for third car tandem garage. Single Width Driveways (See Figure 4-67) This setting provides a maximum driveway width of twelve (12) feet for adjacent two -car garage. Porte Cochere (See Figure 4-68) Setting provides for the incorporation of a Porte cochere. Roripaugh Ranch Specific Plan 4-98 N:\31367.000\dod\SPSect44CCAdopted.doc March, 2003 DESIGN GUIDELINES Articulation of Side and Rear Elevations There is a tendency to have "build out" planes maximized on side and rear yards without articulated treatment of those planes. This results in a two-story stucco effect with no vertical or horizontal relief. Utilize the following techniques or other acceptable techniques to avoid this effect: • Create a single -story plane at the rear by recessing the second story. • Utilize other similar architectural treatments and designs such as balconies or pop out staircases to encourage relief on potential large architectural planes. • Side and rear elevations shall have articulation with modulated facades, window treatment, second story projections and balconies. • Articulation shall be provided on all sides of the homes ("Four-sided Architecture"). Front Elevations • Architectural projections shall be utilized to emphasize entrances, balconies, and porches. Fronts of houses shall utilize several architectural features. Ground floor windows shall have significant trim or relief, second floor overhangs or built in planters. Second story windows shall have similar treatment to emphasize them. • All residences shall incorporate entry courtyards, covered entries or covered porches at the entry into the design. (See Figure 4-71 and 4-72). • Details shall be concentrated around entrances. Materials used for the front entry shall be { distinctive. ` • Building elements that reflect the architectural style should be incorporated into building entries, windows, front porches, and living areas directly adjacent to the street. • Ornamental features including wrought iron and exterior light features shall be combined with other features to create interest in the front of the house with architecturally compatible elements. Rori�u0hRanch Specific Plan 4-125Ranch Specific Plan 4-125 N:\31367.000\dod\SPSect44CCAdopted.doc March, 2003 DESIGN GUIDELINES 4.10.3.6 Architectural Elements A successful project design achieves a proper visual balance and sense of cohesiveness. The differences between the plans and elevation must be readily discernable and create variety, yet at the same time elements, styles and materials should not contrast to such an extent as to result in visual chaos. Architectural elements will play a significant role in the establishment of the architectural style. These elements include architectural detailing, colors and materials, and other site structures. The required Architectural and design elements techniques are as follows: Unit Entries (See Figures 4-71 and 4-72) The entry serves several important architectural and psychological functions: it identifies and frames the front doorway; it acts as an interface between the public and private spaces; and it acts as an introduction to the structure while creating an initial impression. • The entry shall be designed and located so as to readily emphasize its prime functions. Accent materials are encouraged to be used to further emphasize the entries. • If the front door location is not obvious or visible because of building configuration, the entry shall direct and draw the observer in the desired path. The design of the entry area in merchant -built housing shall be strong enough to mitigate the impact of the garage on the facade. • Entry doors and doorways shall be proportional to the architectural style of the structure. • Covered entries, courtyards and porches shall be provided as entry elements. Doors \ Emphasis shall be placed on the design and type of entry door used. It functions as the major introduction to the interior of the house and concern should be given on the image it creates. • Either single or double doors are appropriate. • The door shall be covered by an overhead element or recessed a minimum of 3 ft into the wall plane. • The entire door assembly shall be treated as a single design element including surrounding frame, molding and glass sidelights. • Recessed doors may be used to convey the appearance of thick exterior doors. • Wood may be used for the entry door. Wood grain texture and raised or recessed panels contribute to the appeal of the door. Greater use is being made of metal entry doors but in order to be acceptable, they shall possess the same residential "feel" provided by the wood grain and panels. • Doorways shall be typically rectangular or round -headed and fully recessed. Spiral columns, arches, pilaster, stonework, decorative tiles, or other sculptural details shall be integrated into the doorway design to enhance the visual importance of the entry door. Rorivaugh Ranch Specific Plan 4-127 N:131367.000\dod\SPSect44CCAdopled.doc March, 2003 DESIGN GUIDELINES • The use of glass in the door and overall assembly is encouraged. It expresses a sense of welcome and human scale. It can be incorporated into the door panels or expressed as single sidelights, double sidelights, transom glass or fan windows. Flexibility is allowed concerning the color of the door. It may match or contrast the accent trim, but should be differentiated from the wall color. Windows Typically, the location of windows is determined by the practical consideration of room layout, possible furniture placement, view opportunities and concern for privacy. Greater design emphasis should be directed to ensure that window placement and organization will positively contribute to the exterior architectural character. Windows greatly enhance the elevation through their vertical or horizontal grouping and coordination with other design elements. This relationship to one another and the wall/roof plane creates a composition and sense of order. • All windows in a specific plan elevation shall be integrated into the architecture of the building. This should not be interpreted that they are all the same shape, size or type but rather that a hierarchy of windows exists that visually relates and complements one window to another. • • Windows shall be recessed to convey the appearance of thick exterior walls. Non -recessed windows shall be surrounded with articulated architectural elements such as wood trim, stucco surrounds, shutters or recessed openings, shutters, pot shelves, ledges, sills plantons, and rails that compliment the architecture. • Merchant -built housing occasionally fails to adequately address proper window design and placement on rear and side elevations. This is usually due to prioritization, maintenance and cost factors.. Since side elevations and second story rear windows are frequently visible, �1 greater design effort and budget prioritization need to be given. JJ Garage Doors (See Figure 473) • Utilizing garage types that compliment the architecture, door designs, and plotting techniques will do much to lessen the repetitious garage doors marching down both sides of a residential street. Variations include: o Employment of second -story feature windows above the garage. o Strong architectural entry elements. o Designs with a mix of 2 and 3 car garages, incorporating three single doors in some three car garage plans not facing the street. o Allowance for a 10-foot setback between adjacent garages. o The use of tandem garages may also be incorporated into the building design. o Garage plans with a double door and a single door plan shall not be placed next to each other. • If applicable, where lot width permits plans should include swing -in or side entry garages with reduced front yard setbacks of ten (10) feet. �I Rodpauah Ranch Specific Plan 4128 N:131367.000\dOMPSect44CCAdopted.doc March, 2003 DESIGN GUIDELINES • The design of the garage door shall relate to the overall architectural design of the residence. Colors shall be from the same paint palette.--1 • Ornamentation of garage doors shall be provided to add visual interest from the street scene. ) • The use of the sectional, wood or metal, rolling garage door is required since it maximizes the availability of useable driveway length. • Several different panel designs shall be utilized for any project proposed by each merchant builder. Metal doors shall only be used when they include either texture or raised panels of a "residentiar nature. The use of window elements is encouraged. • The design of the door face shall result in a treatment which breaks up the expanse of the door plane while being complimentary to the architectural elevation of the residence. Architectural detail consisting of cornices, applied molding or trim or applied headers shall be used. There shall be an 8" recess. (See Exhibit 4-73). i Rodpauph Ranch Specific Plan 4-129 N:\31367.00OWocKSPSect44CCAdopled.doc March, 2003 DESIGN GUIDELINES 4.10.3.7 Residential Roof Form Allowable Roof Pitch (See Figure 4-74) • Allowable roof pitches of 3:12 to 4:12 shall be used. Allowable roof pitches over balconies and/or porches may be 2:12. • A single roof pitch should be used on opposite sides of a ridge. Shallow pitches tend to lessen the apparent building mass. Roof Types The use of different roof types will add variety and interest to the street scene. Changing the roof form on a given plan is the best method of creating alternative elevations. However, the roof characteristics should be consistent with the historical style that is chosen. • Hip, gable and shake -like material shall be used separately or together on the same roof. Avoid a canyon effect in side yards when both buildings have front -to -rear gables, by providing dormer or hip elements. • Repetitious gable ends along rear elevations shall be avoided. Roof forms with pitch changes at a porch or projection are preferable. • Roof forms having dual pitches such as Gambrel or Mansard shall not be used. • Maximize variations in roofiines by offsetting roof planes and combining single -story elements with two-story elements. Long uninterrupted rooflines should be avoided. Mechanical equipment is not permitted on roofs. J} Design of Rakes and Eaves • The designer may choose from a variety of rake and eave types based on climatic and stylistic considerations. • Moderate or extended overhangs are acceptable if properly designed. Tight fascia with appropriate style are acceptable. • Single or double fascia boards, exposed rafters, or fascias with planscias when adequately scaled, are acceptable. • Care shall be taken to ensure that material sizes avoid a weak or flimsy appearance. Overhang Projections and Covered Porches • Substantial overhangs are required as a response to solar and climatic conditions. • The inclusion of covered porches and entries are required as part of the product mix. They expand sheltered living space, create entry statements and provide elevation/relief. • Rear covered porches may differ from the roof in both pitch and material, but front porches should retain at least one of these two characteristics. Roripaugh Ranch Specific Plan 4-133 N:131367.00DWocKSPSect44CCAdopted.doc March, 2003 FIGURE 4-70 "W-7 vr M11cN�Ea�I ES y 1 ISM, a V14t:qOP ONAFV5,. Mix � ovg1w �- C Cu 0 s of 4- 0 X .E Co vJ 4- 0/ LJ.. W �L \Cu The Keith C.ml.nleejvMMC . �'� N 0 T 0 3 • E RorIpaugh ,, Ranch ATTACHMENT NO.3 PC RESOLUTION NO 2004 RAProduct Review\Roripaugh Ranch SNDavidson Communities Tr 29661-2, PA03-07251STAFP REPORT-1 Am 9 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA03-0725 A PRODUCT REVIEW FOR 99 DETACHED SINGLE FAMILY RESIDENCES WITHIN PLANNING AREA 2 OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUTH OF MURRIETA HOT SPRINGS ROAD, KNOWN AS TRACT MAP 29661-2. WHEREAS, Davidson Communities, filed Planning Application No.PA03-0725, in accordance with the City of Temecula General Plan and Development Code; WHEREAS, Planning Application No. PA03-0725 was processed including, but not limited to public notice, in the time and manner prescribed by State and local law; WHEREAS, the Planning Commission considered Planning Application No. PA03-0725 on April 21, 2004 at duly noticed public hearings as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter; WHEREAS, at the conclusion of the Commission hearing and after due consideration of the testimony, the Commission approved Planning Application No. PA03-0725; NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the above recitations are true and correct and are hereby incorporated by reference. Section 2. Findings. The Planning Commission, in approving Planning Application No. PA03-0725 hereby makes the following findings as required by Section 17.05.010.F of the Temecula Municipal Code: A. The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the city. The proposed single-family homes are permitted in the Low Medium Density land use designation standards contained in the Roripaugh. Ranch Specific Plan and the City's Development Code. The project is also consistent with the Low Medium land use designation contained in the General Plan. The site is properly planned and zoned, and as conditioned, is physically suitable for the type and density of the residential development proposed. The project, as conditioned, is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the City Wide Design Guidelines, and fire and building codes. B. The overall development of the land is designed for the protection of the public health, safety, and general welfare. The overall design of the single-family homes, including the site, building, parking, circulation and other associated site improvements, is consistent with, and intended to RAProduct Review\Rodpaugh Ranch SPTavidson Communities Tr 29661-2, PA03.0725\Draff Resolution w CofA-4.21-04.doc 1 protect the health and safety of those working in and around the site. The project has been reviewed for, and as conditioned, has been found to be consistent with all �l applicable policies, guidelines, standards and regulations intended to ensure that the J development will be constructed and function in a manner consistent with the public health, safety and welfare. Section 3. Environmental Compliance. A Notice of Exemption for Planning Application No. PA03-0725 was made per the California Environmental Quality Act Guidelines Section 15162. This section applies when an Environmental Impact Report (EIR) has been certified and there are not substantial changes not discussed or examined in the EIR. Section 4. Conditions. That the City of Temecula Planning Commission hereby conditionally approves Planning Application No. PA03-0725 for a Product Review for detached single family residences within Planning Area 2 of the Roripaugh Ranch Specific Plan located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road, Tract Map 29661-2. The Conditions of Approval are contained in Exhibit A. Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 21 at day of April 2004. John Telesio, Chairperson ►_r■r*ls Debbie Ubnoske, Secretary {SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that PC Resolution No. 2004-_ was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 21st day of April 2004, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary RAProduct Revlew\Roripaugh Ranch SP\Davidson communities Tr 29661-2, PA03-072511)raft Resolution w CofA-4-21-04.doc 2 EXHIBIT A CONDITIONS OF APPROVAL RAProduct Review\Rodpaugh Ranch SPOavidson Communities Tr 29661.2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 3 EXHIBIT A CITY OF TEMECULA CONDITIONS OF APPROVAL Planning Application No. PA03-0725 Project Description: A Product Review for 99 detached single family residences within Planning Area 2 of the Roripaugh Ranch Specific Plan located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road, Tract Map 29661-2. Tentative Tract No.: DIF Category: Approval Date: Expiration Date: PLANNING DEPARTMENT 29661-2 Per Development Agreement April 21, 2004 April 21, 2006 Within Forty -Eight (48) Hours of the Approval of this Project 1. The applicant shall deliver to the Planning Department a cashier's check or money order made payable to the County Clerk in the amount of Sixty -Four Dollars ($64.00) for the County administrative fee, to enable the City to file the Notice of Exemption as provided under Public Resources Code Section 21108(b) and California Code of Regulations Section 15062. If within said forty-eight (48) hour period the applicant has not delivered to the Planning Department the check as required above, the approval for the project granted shall be void by reason of failure of condition (Fish and Game Code Section 711.4(c). General Requirements 2. The permittee/applicant shall indemnify, protect and hold harmless, the City and any agency or instrumentality thereof, and/or any of its officers, employees, and agents from any and all claims, actions, or proceedings against the City, or any agency or instrumentality thereof, or any of its officers, employees, and agents, to attack, set aside, void, annul, or seek monetary damages resulting from an approval of the City, or any agency or instrumentality thereof, advisory agency, appeal board or legislative body including actions approved by the voters of the City, concerning the Planning Application which action is brought within the appropriate statute of limitations period and Public Resources Code, Division 13, Chapter 4 (Section 21000 et seq., including but not by the way of limitations Section 21152 and 21167). The City shall promptly notify the permittee/applicant of any claim, action, or proceeding brought forth within this time period. The City shall estimate the cost of the defense of the action and applicant shall deposit said amount with the City. City may require additional deposits to cover anticipated costs. City shall refund, without interest, any unused portions of the deposit once the litigation is finally concluded. Should the City fail to either promptly notify or cooperate fully, permittee/applicant shall not, thereafter be responsible to indemnify, RAProduct RevieMRoripaugh Ranch SP\Davidson communities Tr 29661-2, PA03-07250raft Resolution w C&A-4-21-04.doc 4 defend, protect, or hold harmless the City, any agency or instrumentality thereof, or any of its officers, employees, or agents. Should the applicant fail to timely post the required deposit, the Director may terminate the land use approval without further notice to the applicant. 3. This approval shall be used within two (2) years of the approval date; otherwise, it shall become null and void. By use is meant the beginning of substantial construction contemplated by this approval within the two (2) year period which is thereafter diligently pursued to completion or the beginning of substantial utilization contemplated by this approval. 4. Building elevations shall substantially conform to the approved Exhibits, including elevations, floor plans, landscaping plans, hardscape plans, and plotting plan, contained on file with the Planning Department or as amended by these Conditions of Approval. 5. The colors and materials (including lighting) for this project shall substantially conform to the approved colors and materials contained on file with the Planning Department. Any deviation from the approved colors and materials shall require approval of the Director of Planning. 6. This approval is for product review only and shall in no way limit the city or other regulatory or service agencies from applying additional requirements and/or conditions consistent with applicable policies and standards upon the review of grading, building and other necessary permits and approvals for the project. 7. The Development Code requires double garages to maintain a minimum clear interior dimension of 20' x 20'. This shall be clearly indicated on the plans prior to the issuance of building permits for the project. Interior dimensions are measured from the inside of garage wall to the opposite wall, steps, landing, equipment pedestals, bollards or any similar type feature. When the top of the stem wall is more than 8" above the garage floor, the required dimension is measured from the inside edge of the stem wall. 8. Applicant shall obtain the proper .permits before construction, including Encroachment Permit from the Public Works Department for any work done in the City right-of-way, and Building Permit from the Building and Safety Department. 9. Fire Hydrants shall be installed prior to the start of any construction at the site. 10. Driveway widths shall comply with the driveway width requirements per City Standards. In order to allow for adequate street parking, the driveway widths at curbs will be limited to 24' maximum. 11. All Spanish Revival and Monterey styles shall utilize a smooth to light texture stucco finish (20/30 aggregate or smoother) as determined acceptable by the Planning Director. East Coast Traditional styles shall utilize a light -medium (16/20 aggregate) finish. 12. Monterey and Spanish Revival shall include arched focal points. Each focal point shall be unique for the appropriate style. Focal points may include arched doors, windows, or other forms as determined acceptable by the Planning Director. 13. All Monterey styles shall utilize a Spanish style tile roof. RAProduct RevievARodpaugh Ranch SPtDavidson Communities Tr 29661-2, PA03-0725tDmft Resolution w CofA-4-21-04.doo 5 14. All Spanish Revival styles shall include a Barrel tile clay roof. (� 15. One style of each plan shall provide a roof plan that is clearly different than the other styles in order to provide variation along the front and rear street scene. 16. Corner lots shall be appear as a second front elevation and include elements from the front elevation, such as materials, arched focal points, courtyards, patios as approved by the Planning Director. 17. Each style shall include decorative garage doors that provide a variation in style and shall include windows as appropriate, as approved by the Planning Director. 18. Each style and style shall enhance the side a rear elevations to include elements from the front elevation to satisfy the four-sided architecture requirement. This can be accomplished with additional arched windows, siding and/or materials, window sill treatment, or as determined acceptable by the Planning Director. 19. The Spanish Revival and/or Monterey shall include an additional material(s) such as brick or stone to differentiate between the styles. 20. All materials such as stone, brick and siding shall wrap around the side yard to the fence return or as determined acceptable by the Planning Director. 21. Fencing on corner lots shall be pulled back towards the rear on exterior corner lots to open up the exposed elevation to the street as determined acceptable by the Planning Director. 22. Fencing between units (on interior side yards and rear yards, but excluding view fencing) where not visible from the street shall be wood fence as shown in figure 2-15 (privacy fencing) or as approved by the Planning Director. 23. Fencing along lot 1, adjacent to the paseo trail shall include a low slumpstone wall for the first 20 feet and transition into a 6400t project wall as shown in figure 4-38 (Paseo entry). Prior to the issuance of Grading Permits 24. The applicant shall submit a Grading Plan, subject to the review and approval of the Planning Department. 25. The applicant shall sign both copies of the final conditions of approval that will be provided by the Planning Department staff, and return one signed set to the Planning Department for their files. 26. The applicant shall submit to the Planning Department for permanent filing two (2) 8° X 10" glossy photographic color prints of the Color and Materials Boards and of the colored version of the approved colored architectural elevations to the Planning Department for their files. All labels on the Color and Materials Board and Elevations shall be readable on the photographic prints. 27. A street tree master plan indicating what tree species will be planted on each street shall be submitted. The plan should graphically show the locations of all trees. One tree species per street shall be provided. R.\Product RevieMRoripaugh Ranch SPtDavidson Communities Tr 29661-2. PA03.0725tDraft Resolution w CofA-4-21-04.doc 6 Prior to the Issuance of Building Permits 28. The applicant shall comply with standards conditions and requirements set forth in the Roripaugh Ranch Specific Plan, Mitigation Monitoring Program, conditions of approval for Tract Map 29353 (PA01-0230, A -Map), Tract Map 29661(PA01-0253, B-Map), and Ordinance No. 02-14, the Development Agreement between the City of Temecula and Ashby USA, LLC for the Roripaugh Ranch Specific Plan, including, but not limited to attachment "5", which requires various on and off -site improvements. 29. The applicant shall submit street lighting and signage plans to the Planning Director for final approval. Street lighting shall comply with the Specific Plan, Riverside County Mt. Palomar Lighting Ordinance, and the mitigation -monitoring program. Said lighting shall comply with the standards as set forth in the Mitigated Monitoring Program and install hoods or shields to prevent either spillage of lumens or reflections into the sky (lights must be downward facing). 30. The applicant shall submit mailbox elevations and a plot plan clearly indicating the location of each mailbox area. Mailbox type and location shall be subject to the approval of the Postmaster and Planning Director. 31. Prior to issuance of any residential building permit within Planning Area 4A, the construction landscape and architectural plans for Paseos (including hardscaping, landscaping, fencing, lights and gates), Paseo gates Staff Gated Primary Entry, Card Key Entry, fuel modification zones shall be submitted and approved 32. Prior to construction of the Model Home complex, the applicant shall apply for a Model \ Home complex permit. 33. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings within private common areas for a period of one year, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from the completion of the landscaping. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the bond shall be released. 34. Precise Grading Plans consistent with the approved rough grading plans, plotting.plan, structural setback measurements shall be submitted and approved. 35. The developer shall demonstrate to the Planning Director that all homes will have double paned windows with at least a 25 STC rating installed to reduce noise from occasional aircraft overflights. 36. The developer shall provide proof that construction debris, including but not limited to lumber, asphalt, concrete, sand, paper and metal is recycled through the City's solid waste hauler, subject to the approval of the Community Services Department. 37. All design components shall comply with applicable provisions of the 1998 edition of the California Building, Plumbing, Mechanical and Fire Codes; 1998 National Electrical Code; California Administrative Code, Title 24 Energy and Disabled Access Regulations and the Temecula Municipal Code. R:\Producl RevievARodpaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 7 38. Obtain all building plans and permit approvals prior to commencement of any (� construction work. l 39. A pre -construction meeting is required with the building inspector prior to commencement of any construction or inspections. 40. Provide appropriate stamp of a registered professional with original signature on plans and structural calculations submitted for plan review. 41. Provide electrical plan including load calculations and panel schedule for plan review. 42. Schematic plumbing plans, electrical plan and load calculations, along with mechanical equipment and ducting plans shall be submitted for plan review stamped and original signed by an appropriate registered professional. 43. Obtain street addresses from the Building Official prior to submittal of plans for plan review. 44. Signage shall be posted conspicuously at the entrance to the project that indicates the hours of construction, shown below, as allowed by City of Temecula Ordinance No. 94- 21, specifically Section G (1) of Riverside county Ordinance No. 457.73, for any site within one -quarter mile of an occupied residence. Monday -Friday: 6:30 a.m. — 6:30 p.m. Saturday: 7:00 a.m.- 6:30 p.m. No work is permitted on Sunday or Government Holidays Prior to the Issuance of Occupancy Permits 45. All required landscape planting and irrigation shall have been installed consistent with the approved construction plans and shall be in a condition acceptable to the Director of Planning. The plants shall be healthy and free of weeds, disease, or pests. The irrigation system shall be properly constructed and in good working order. 46. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from final certificate of occupancy. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the applicant shall release the bond upon request. 47. If deemed necessary by the Director of Planning, the applicant shall provide additional landscaping to effectively screen various components of the project. 48. Front yard and slope landscaping, hardscaping and fencing within individual lots shall be completed for inspection prior to issuance of each occupancy permit (excluding model home complex structures). 49. The developer shall submit proof that all local refuse generators have been provided with written information about opportunities for recycling and waste reduction (i.e. buyback centers, curbside availability), subject to the approval of the Public Works and Community Services Departments. RAProduct RevieMRoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 8 50. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. By placing my signature below, I confirm that I have read, understand and accept all the above I Conditions of Approval. I further understand that the property shall be maintained in conformance with these conditions of approval and that any changes I may wish to make to the project shall be subject to Planning Commission approval. Applicant's Signature Applicant's Name Printed Date RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 9 ATTACHMENT NO.4 LETTER TO APPLICANT DATED JANUARY 21, 2004 RAProduct Review\Roripaugh Ranch SNDavidson Co mitiea Tt 29661-2, PA03- 725\STAFF REPORT-Ldoc 10 City of Temecula 43200 Business Park Drive - PO Box 9033 - Temecula - California 92589-9033 - (909) 694-6400 - FAX (909) 694-6477 January 21, 2004 Ms. Paula Lombardi Davidson Communities 1302 Camino Del Mar Del Mar, CA 92014 SUBJECT: Planning Application PA03-0725 for the product review of the new single-family homes proposed for the Roripaugh Ranch Specific Plan. Dear Paula: Staff has reviewed Planning Application PA03-0725 and has determined that the project cannot be approved as proposed. Below is a list of.recommended and/or required changes to the above referenced project. General Comments 1. Section 4.10.3.4 of the specific plan requires single story products as determined by the market or by staff. Staff has determined that a reasonable number of lots (no less than 20%) are required to be developed with a single story product. Please provide a single story product for staffs review. The comments below shall be incorporated into the single story product. 2. Per our conversation, each style is proposed to utilize a 20/30 sand float stucco finish with squared comers. Please provide a sample of this stucco finish. The sample provided appears to be a heavier aggregate. 3. Provide clear notes on the elevations indicating depth of recessed doors and windows, width and depth of borders, overhang length, type of materials, finish etc. Staff has found that a+/ - system is a good method of showing how much a window, door, or plane is recessed or projected from the wall plane. 4. Staff has reviewed the plot plan and has determined that many of the setbacks have not been met. Lots 31, 50, 59, 81, and 100 do not meet the 10-foot exterior side yard setback. Lot 78 does not meet the 18-foot garage face setback. Lot 81 does not meet the 20-foot rear yard setback. Also, while the remainder of the lots appear to meet the setbacks, staff strongly recommends the front setbacks vary in order to provide interest from the street R:1Product ReviewWoripaugh Ranch SPOJavidson Communities 7h 29661-2, PA03-0725\con m nt leuervl.doc 1 scene. As proposed many lots utilize a 10-foot setback with little variation from lot to lot. Please revise where possible to provide interest. 5. Elements from the front elevation of each plan should be carried over to the sides and rear so the architectural style is clearly evident from all sides. This can be accomplished with varied roof pitches, additional exposed beams, variations in the window type such as arched Windows, vertical or horizontal windows, chimney design, etc. The specific plan requires four sided architecture, which has been interpreted that the architectural style shall be clearly evident from each side of the residence. As proposed, the sides and rears offer little variation from each other. 6. Monterey and Spanish architecture utilize many of the same features, which creates difficulty when trying to distinguish the two styles from each other. Staff recommends either a fourth architectural style or choosing an alternative style, as approved by staff in order to clearly distinguish between the styles. If this recommendation is not taken, please note that in order to recommend approval, there must be clear differences in each style including materials, colors and overall design. 7. Staff has reviewed the color variations proposed and while Spanish and Monterey may have utilized similar color palettes historically, the specific plan requires that the colors vary for each style. The specific plan requires a minimum of four color variations for each style in each planning area (Section 4.10.3.1). Said color variations must not be the same as another style within the same planning area. 8. Staff recommends including additional materials into the products as necessary. Staff feels the use of brick on the Monterey style could help distinguish itself from Spanish. ( \ 9. All supplemental materials such as shingle siding, stone, brick etc. should wrap around the 1 side elevations. Said materials should wrap to the side yard fence or to point it is no longer visible from the street. 10. The specific plan requires all comer lots to provide a second front elevation. As proposed, none of the corner lots provide a second front elevation as required. One option that could be considered is providing one or two plans designed specifically for corner lots. Another option is to provide a special side corner lot elevation for each plan. Staff has also accepted wrap around porches and low walls wrapping around the side to create a courtyard effect. It is important to note that fencing on the comer lots shall be pulled back to display the elevation as opposed to shielding it from the street. if. Please provide staff with alternative types of front doors and garage doors related to the particular architectural style proposed. The specific plan encourages single or double doors, glass sidelights, surrounding frames, and molding around the door. The specific plan states "Emphasis should be placed on the design and type of entry door used. It functions as the major introduction to the interior of the house and concern should be given on the image it creates." 12. The City recommends that all accent relief elements installed below eight feet of ground level be constructed of dense, durable material (not soft foam) to assure long term durability. Please indicate materials to be used on the elevations. RAProduct Review\Rotipaugh Rauch SP\Davidson Communities 7h 29661-2, PA03-0725Nmmment letter-l.doc 2 13. Please revise summary table sheet for the project. The lot coverage shall be recalculated to f 1 show the footprint divided by the lot area. The architectural style should also be shown on J the summary sheet. Also, please show the correct setbacks as required for the lots mentioned in comment No. 4 above as well as the adjusted front setbacks. 14. Please note that garages are required to be 20' by 20' measured from the interior wall or drywall and from the interior of the garage door to any barrier (stem wall or pole) greaterthan 8-inches in height. The floor plans should provide interior dimensions for the garage. While the floor plans indicate the garages measure 20' x 20', they do not measure 20' x 20'. Please revise the plans so all garages scale to the 20' x 20' interior dimensions. 15. Please keep in mind that the specific plan requires 50% of the residences to include architecture forward. Make sure that when the single story product is introduced into the plotting, no less than 50% of the lots shall maintain the architectural forward concept. 16. Please show the roof pitch on the plans. One way to differentiate between the styles is by varying the roof pitch and design. While there are slight differences in the roof design, staff feels the variations do not go far enough to clearly distinguish between the styles. Staff recommends a steeper roof pitch for East Coast Traditional. Spanish and Monterey typically have similar roof styles. Please see comment NO.6 above. If a different architectural style is not provided, it is your responsibility to provide creative differences between each plan. 17. As proposed, the plot plan shows lots 16, 31, and 60 with the side of the garage facing the street. Since all corner lots are required to maintain two front elevations, staff feels that these floor plans should be flipped in order to expose the more decorative side elevation. 18. Staff has reviewed the proposed decks and will not recommend approval as shown. Decks must appear as a structural component of the residence and be decorative. Please revise all decks for each plan. 19. Staff acknowledges that there are strict setbacks and small lots. In order to avoid setback problems, staff requires that you pre -plot all decks in order to determine what lots can accommodate a rear yard deck. 20. The specific plan requires ornamental features including decorative light features combined with other features to create visual interest in the front of the house with architectural compatible elements. Please provide spec sheets for the proposed lighting for each architectural style. Lighting should reflect the architecture of each unit. Please note that changes in lighting may be approved administratively by staff, if requested. 21. Please provide specification sheets for the proposed street light fixtures, street name signs and traffic signs. These will be used throughout the project; therefore, it needs to be requested by Ashby USA. 22. Please show an approximate location of the address for each unit and the method of posting and lighting the address. For example, will the addresses be backlit or be solid metal painted black. Please specify the type of addressing proposed for each typical residence. 23. Please plot the location and show a detail of the type of mailboxes proposed. This will also be used project wide and must be requested by Ashby USA and the U.S. Postmaster. RAPmduct ReviewlRmipaugb Ranch SP+Davidson Communities Tr 29661-2, PA03-0725\coauneot letter-14oc 3 24. Please plot the location of all AC units on the plot plan. AC units shall be provided in the rear yard to allow clear access on the side yards. 25. Fencing should be revised to meet the specific plan standards. See section 2-15 of the specific plan for fencing standards. I order to maintain a consistent theme within the entire specific plan, walls and pilasters between residences are to be slump -stone (stucco walls and pilasters will not be accepted). Also, wrought iron view fencing shall be either dark green, aged copper or bronze. Staff will accept any color, however you must coordinate with the merchant builders and Ashby USA to determine what color will be utilized project wide. Ashby USA will be required to amend the specific plan so it applies project wide. 26. Chimney designs should be decorative and reflect each style. The same chimney design should not be used for two different architecture styles. 27. Elevations should provide a note indicting the room option for all dotted windows and/or doors. 28. Typical lighting for each architectural style should be provided. Lighting should be provided in the front entryway and/or at the garage entry. 29. Provide examples of door types to be offered. Doors should include glass and stress the importance as the focal point of the front elevation. Staff also recommends double doors, arched doors or other altematives that will stress the entry as a focal point. 30. Provide a detail of each window border proposed for each architecture style. Where windows are not recessed, a border shall be provided 31. All front, rear and visible side windows (from the front and rear) should include decorative borders sills for windows nearest the front and rear elevation and on select side elevations to show importance. 32. Please provide a written analysis of each floor plan/architectural style indicating how the plan meets or establishes the necessary architectural theme. 33. Please revise the plot plan so all text is facing the same direction. As shown some of the language is upside down, which makes it difficult to review. Plan 1 34. Provide a separate side elevation for all comer lots (Apply to all necessary plans as plotted). 35. The sides and rear elevations are too similar. Please provide unique details for each style in order to satisfy the four sided architecture requirement. 36. The left elevation includes a long uninterrupted wall with no breaks. Please provide projections or breaks in the wall. 37. Windows should be either recessed, projected, include borders, shutters or alternative decorations to enhance each window. Also, in order to carry around the architecture to each side, arched or round windows, wrought iron details, etc. shall be provided as necessary (This applies to all plans). RNPmduct ReviewNRotipaugh Ranch SPOavidson Communities 7t 29661-2, PA03-0725%comment letter-1.doc 4 38. The location of the fence should be relocated on the exterior side yard elevation (all plans plotted on comer lots). 39. Balconies should be functional where possible. Please consider expanding balconies where necessary to compliment the style. For example, Monterey styles typically include long covered balconies that run a significant length of the elevation. 40. Please provide unique details for each style. Windows, trim, doors, materials are all the same or too similar. Each style must provide unique details. Please provide a detail sheet showing typical details for each style, including doors, borders, sills, windows, lighting, garage doors, etc. (One sheet shall include details for each plan). Plan 2 41. The front elevations need to be enhanced with a covered entry or a porch. The entries do not show importance and shall be enhanced to show importance. 42. The left elevation includes a long uninterrupted wall with no breaks. Please provide projections or breaks in the wall. 43. Windows should be either recessed, projected, include borders, shutters or alternative decorations to enhance each window. 44. The sides and rear elevations are too similar. Please revise each provide unique details in order to satisfy the four sided architecture requirement. 45. While care must be taken not to make each plan too similar, the balconies should be addressed as noted in comment No. 38 above. Plan 3 46. The right elevation needs to be enhanced to avoid a long uninterrupted wall. As proposed, there is little interest along this wall. 47. The chimney design for each style must be different for each style. Please revise as necessary. 48. Side and rear elevations are all too similar, please ensure each plan elevation includes unique features of the style. Fence Comments: 49. Please remove all references to stucco walls and/or pilasters. While the specific plan indicates stucco may be used, there has been a consensus among builders to provide slump stone walls and pilasters. In order to maintain a consistent theme throughout the specific plan, the plans must be revised to show slump stone. 50. Please revise the fence plans to show a 6-foot slump stone project wall between units and to the point of the rear connection to the unit. The plans show a low stucco wall between units. RAPmduct Review\Roripaugh Ranch SP1Uavidson Conununiries Tr.29661-2, PA03-0725\com t 1etter-1.doc 5 51. Please revise the plans to show a 6-foot slump stone project wall for lots adjacent to paseos (lot 1). The plans show a low stucco wall for the length of the paseo. �l 52. Please revise the fence plans to include a pilaster at the front of the jog in the wall between units. Also, a break in the wall plane no less than 2 feet is required. 53. Please revise the view fencing to include the correct color of tubular steel. While the specific plan allows for dark green, aged copper or bronze, staff wants to ensure there is a consistent color used throughout the specific plan. Please contact Ashby USA and the merchant builders to determine the color to be used. 54. Please provide a note on the plans that all retaining walls will be constructed of slump stone to match the project walls. 55. Staff has made a determination that pilasters will not be required on interior lots. Since many of the lot lines do not align, pilaster will not be required for private fencing on the interior lots only. Pilasters are still required fort exterior side yards, exposed rear yards and view fencing. 56. Please pull the fencing back towards the rear of the lot of comer lots. As noted above, corner lots must include 2 front elevations and the fencing shall be pulled back to expose the architecture. 57. Staff feels that connection fence connection for plan 2 should be pulled back behind the entry (example Lot 20). This will open up the architecture and show the entry, which is required to be a focal point of the front elevation. Landscape Comments: Plans are too conceptual to provide an appropriate review. Multiple tree choices are provided for several plan symbols. There is no indication as to which symbol references each tree and the tree character may be one of several. Several symbols are used for all shrubs. The list of shrubs varies greatly in character. Please provide one symbol for each tree and one symbol for each type of shrub (i.e. large evergreen screen shrubs, small accent, color shrub, etc.). The comments below are provided for applicant direction. Final comments are reserved until a more complete plan is provided. 58. Per the specific plan, the minimum size tree is to be 24" box. Please revise accordingly. 59. Per the specific plan, one street tree along with one front yard tree shall be planted per lot. Please add trees as required and revise note accordingly. 60. Per the specific plan, ground cover shall be planted continuous under all shrubs and trees. Please provide ground covers as required. 61. Per the specific plan all shrub beds shall be covered with a 2" layer of 1"-3" walk on bark. Please provide for this requirement. 62. Please clarify that all hardscape within the front yard is to be colored concrete, paving stones, flag stone or a combination of various textures, shapes and materials. RAProduct Review\Rofipaugh Ranch S]Mavids n Communities Tr 29661-2. PA03-0725\com t letter-Ldoc 6 63. Side yards outside of the fence have the potential to be forgotten and neglected. Please provide drought tolerant, maintenance free plantings that will survive if irrigation is turned off and plantings are neglected. 64. Crape Myrtle is subject to powdery mildew in the Temecula area. Please specify mildew resistant varieties (i.e. Indian Tribe, Faurei). 65. Melaleuca quinquenervia, Tristania conferta, Metrosideros excelsus, and Bougainvillea are subject to freeze in the Temecula area. Please provide substitutes. 66. Please use Liriope in shaded areas only. It is subject to burn in seasonal high temperatures in the Temecula area. 67. The applicant is to insure that mature plantings will not interfere with utilities and traffic sight lines. It is critical that you review the design guidelines in the specific plan before you revise the plans. The design guidelines includes language that requires window treatment, focal entries, unique details, windows, materials and features for each style, four-sided architecture, single story products, etc. If you have any questions regarding the specific plan and/or design guidelines, please feel free to contact me. Staff understands there are many comments to be addressed, however staff feels that the groundwork has been established for a viable project. If you have any questions regarding the above comments, please feel free to contact me at any time via email at dan.long@cityoftemecula.org or by phone at (909) 964-6400 extension 198. 1 look forward to working with you as this project progresses forward. Sincerely, Dan Long Associate Planner RAProduct Review\Roripaugh Ranch SMavidson Com unifies Tr 29661-2, PA03-0725\com enl letter-l.doc 7 ATTACHMENT NO.5 RESPONSE LETTER FROM APPLICANT DATED JANUARY 29, 2004 RAProduct Revicw\Roripaugh Ranch SPNDavidson Communities Tr 29661-2, PA03-0725\STAFF REPORT-14oc 11 01/30/2004 11:58 FAX 8582594644 DAVIDSON .. Q001 IDPLVIDSON COMM UNITIES I7ES January 29, 2004 Mr. Dan Long Associate Planner City of Temecula 43200 Business Park Drive Temecula, California 92589-9033 ]SU CAMNU Dn.MAR IYMMAK CAUFORNLA M4 waaNaso�m� uc+s„ Subject: Planning Application PA03-0725 for the product review of the new single family homes proposed for the Roripaugh Ranch Specific Plan, Planning Area 2 Dear 1 &- Long: Davidson Project Services, Inc. has reviewed your letter as received on January 213% 2004 and subsequently met with you to further our understanding of each item. Our response is as follows: 1. As per our discussion at our meeting on January 22Rd, Davidson believes that the market is saturated with one-story homes. Of the 509 homes projected ! for the panhandle over 20% will be one story. We respectfully are proceeding with three two story homes. 2. We will submit a "light to medium" sand finish stucco sample as discussed. 3. May. 4. Resolved. 5. Okay. 6. Davidson will show clear differences in each style including materials, colors, and overall design. 7. okay. 8. Davidson is adding additional articulation of our existing material pallet. 9. May- 10. Davidson feels that all the articulation that has gone into the plans will avail any elevation to show well plotted on the corners. Further, the market wants privacy in their yards, particularly their courtyards where they can enjoy serenity at the end of a long day or play with the children on the weekend. 01/30/2004 11:58 FAX 8582594644 DAVIDSON 0 002 We feel that we meet the requirements of the specific plan and meet the demands of the market. 11. Okay. 12. Okay. 13. Okay. 14. All garages measure at least 20 x 20 (interior dimensions). 15. 100% of our Architecture is "Architecture Forward'. One 0f our plans displays a deep-set garage with a porte cachere. 16. Okay. 17, Okay 18. Okay 19. We will pre -plot all optional decks. 20. okay f 21. We have requested specification sheets for streetlights, street names and traffic signs from Ashby USA. 22. Okay 23. Davidson will plot the mailbox locations and have them approved by the U.S. postmaster. Further we will request the detail of the proposed mailbox design from Ashby USA. 24. Okay 25. Okay 26_ Okay 27. Okay 28, Okay 29. Okay 30_ We will provide on the 2"4 floor as we discussed at the meeting on the 22n4 -`01/30/2004-11:59 FAX 8582594644 DAVIDSON 0003 0 In i 31. All windows, all four elevations have trim to match appropriate style. Accent trim was introduced where appropriate. 32. Okay 33. Our Engineer will do the best they can. Plan 1 1. Please see response number 10. 2. Okay 3. Okay 4. Okay 5. Please see response number 10. 6. We have a functional 8 x 6 balcony over the garage. 9. Okay Plan 2 1. Per our meeting we pointed out that this plan has a covered porch. 2. Okay 3. Okay 4, Okay 5. The optional deck is at the rear of this plan; the Romeo & Juliet balcony is purely an aesthetic feature. Plan 3 1. Okay 2. Okay 3. The roof was completely redesigned. 01/10/2004 11:59 FAb 8582594644 DAVIDSON 16004 C) Fence Comments: 1- Okay Z- Okay 3. Okay 4. Okay S. Okay 6. Okay 7. Okay 8. Please refer to item 10. 9. Please refer to item 10 Landscape Comments. First Paragraph: Okay 1. As per our discussion at our meeting, Davidson meets and exceeds the requirements. 2 As per our discussion at our meeting, Davidson meets and exceeds the requirements. All remaining items: Okay Our consultants are in the process of complying with stag s comments as noted is this correspondence. The addressed comments will be in your office on February 6a` for your review. As you know, our concern is to get the project a,proved. We would very much appreciate being calendared for the February 18 Planning Commission Hearing_ Certainly anything Staff can do would be most appreciated. Sincerely, CITY OF TEMECULA COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM TO: Planning Commissioners FROM: Dan Long, Associate Planner DATE: May 19, 2004 Davidson Communitf'es (PA03-0725) Roripaugh Ranch Specific Plan, Planning SUBJECT: Area 2 Approve subject to the attached conditions of approval. BACKGROUND: The Planning Commission reviewed the proposed project on April 21, 2004 and approved a motion to continue the project to the May 19, 2004 Planning Commission hearing. Staff has reviewed the revised plans and has determined that while the revised plans have addressed some of the concerns of the Planning Commission, there remain a number of outstanding issues that have not been addressed. At their meeting on April 21, 2004 the Commission recommended that Conditions Nos. 12, 15, 17, 19 and 20 be implemented into the plans. These conditions required arched focal points on the Spanish and Monterey elevations, varied roof planes for each floor plan, decorative garage doors, and additional materials on the Spanish or Monterey elevations to better distinguish between the styles and wrap siding around to the sides. In addition, the Commission recommended the following revisions: • Reducing the massing on Plan Two by eliminating the second story over the front portion of the residence • Providing additional shingle siding on the sides of the East Coast Traditional elevation • Addressing window spacing and windows with single shutters as well as the width of the entry doors • Changing the roof material and color on the Spanish and Monterey elevations • Providing a variation in the garage door design • Reducing the number of Plan Threes on Brush Creek Drive • Making the plot plan more legible RAProduct RevieMRoripaugh Ranch SPOavidson Communfties Tr 29661-2, PA03-0725\pc sr memo 5-19-04.doc 1 • Minimizing the number of Plan Twos and Threes adjacent to one another. In reviewing the revised elevations, staff has noted that Davidson Communities has made provisions for an East Coast Traditional garage door that includes glass along the top row and has provided enhanced side elevations for all styles, which include windows with shutters, decorative window sills and surrounds, wrought iron railings and shingle siding. A variation of roof tile shapes and color for the Monterey (low profile, lighter tone) and Spanish (' S" tile, darker tone) has been proposed. While the applicant has shown various options for garage doors and entry doors, these elements are optional and will not be included in the regular pattern of the street scene unless requested by the home buyer. The following issues identified by staff and Commission as items of concern have not been addressed: • Conditions Nos. 12, 15, 19 and 20 have not been implemented. These conditions deal with arched focal points, variation in the roof plans, and the use of additional materials such as brick for the Spanish or Monterey styles; • Massing on Plan Two has not been addressed; • Window spacing and windows with single shutters have not been addressed; • Entry doors have not been expanded in width (optional doors are proposed, however they do not vary in shape or width and no glass is proposed) • The applicant has re -plotted the plans along Brush Creek Drive, however there is no net loss or gain of any single plan. Staff has prepared conditions of approval to include the remaining Planning Commission's recommendations. A Resolution of Approval has been attached for your consideration. The staff report packet from the previous meeting (April 21, 2004) is also attached for your reference. Staff recommends the Planning Commission approve the project with the attached conditions of approval. ATTACHMENTS 1. Plan Reductions — Blue Page 3 2. PC Resolution No. 2004-_ — Blue Page 4 Exhibit A — Conditions of Approval 3. April 21, 2004 Planning Commission Staff Report — Blue Page 5 4. Davidson Communities Letter Dated May 11, 2004 — Blue Page 6 RAProduct RevievARonpaugh Ranch SP\Davidson Communities Tr 29661.2, PA03-0725�pc sr memo 5-19-04.doc 2 ATTACHMENT NO. 7 PLAN REDUCTIONS (Separate Attachment) RAProduct Review\Rodpaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\pc sr memo 5-19-04.doc 3 ATTACHMENT NO.2 PC RESOLUTION 2004 RAProduct RevievARo6paugh Ranch SMaMson Communities Tr 29661-2. PA03-0725\pc sr memo 5-19-04.doc 4 PC RESOLUTION NO.2004-_ t ) A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA03-0725 A PRODUCT REVIEW FOR 99 DETACHED SINGLE FAMILY RESIDENCES WITHIN PLANNING AREA 2 OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUTH OF MURRIETA HOT SPRINGS ROAD, KNOWN AS TRACT MAP 29661-2. WHEREAS, Davidson Communities, filed Planning Application No.PA03-0725, in accordance with the City of Temecula General Plan and Development Code; WHEREAS, Planning Application No. PA03-0725 was processed including, but not limited to public notice, in the time and manner prescribed by State and local law; WHEREAS, the Planning Commission considered Planning Application No. PA03-0725 on April 21, 2004 and May 19, 2004 at duly noticed public hearings as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter; WHEREAS, at the conclusion of the Commission hearing and after due consideration of the testimony, the Commission approved Planning Application No. PA03-0725; NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the above recitations are true and correct and are. hereby -incorporated by reference. Section 2. Findings. The Planning Commission, in approving Planning Application No. PA03-0725 hereby makes the following findings as required by Section 17.05.010.E of the Temecula Municipal Code: A. The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the city. The proposed single-family homes are permitted in the Low Medium Density land use designation standards contained in the Rorfpaugh Ranch Specific Plan and the City's Development Code. The project is also consistent with the Low Medium land use designation contained in the General Plan. The site is properly planned and zoned, and as conditioned, is physically suitable for the type and density of the residential development proposed. The project, as conditioned, is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the City Wide Design Guidelines, and fire and building codes. B. The overall development, of the land is designed for the protection of the public health, safety, and general welfare. The overall design of the single-family homes, including the site, building, parking, circulation and other associated site improvements, is consistent with, and intended to RAProduct RevievARoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-5-19-04.doc 1 protect the health and safety of those working in and around the site. The project has been reviewed for, and as conditioned, has been found to be consistent with all applicable policies, guidelines, standards and regulations intended to ensure that the development will be constructed and function in a manner consistent with the public health, safety and welfare. Section 3. Environmental Compliance. A Notice of Exemption for Planning Application No. PA03-0725 was made per the California Environmental Quality Act Guidelines Section 15162. This section applies when an Environmental Impact Report (EIR) has been certified and there are not substantial changes not discussed or examined in the EIR. Section 4. Conditions. That the City of Temecula Planning Commission hereby conditionally approves Planning Application No. PA03-0725 for a Product Review for detached single family residences within Planning Area 2 of the Roripaugh Ranch Specific Plan located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road, Tract Map 29661-2. The Conditions of Approval are contained in Exhibit A. Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 19th day of May 2004. John Telesio, Chairperson ATTEST: Debbie Ubnoske, Secretary (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that PC Resolution No. 2004-_ was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 19"' day of May 2004, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary RAProduct RevievARoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draff Resolution w CotA-5-19-04.doc 2 r#N:►►--3M DRAFT CONDITIONS OF APPROVAL RAProduct Review\Roripaugh Ranch SP\Davidson Communflies Tr 29661.2, PA03-0725\Draft Resolution w CofMA9-04.doc 3 nEXHIBIT A CITY OF TEMECULA DRAFT CONDITIONS OF APPROVAL Planning Application No. PA03-0725 Project Description: A Product Review for 99 detached single family residences within Planning Area 2 of the Roripaugh Ranch Specific Plan located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road, Tract Map 29661-2. Tentative Tract No.: 29661-2 DIF Category: Per Development Agreement Approval Date: May 19, 2004 Expiration Date: May 19, 2006 PLANNING DEPARTMENT Within Forty -Eight (48) Hours of the Approval of this Project 1. The applicant shall deliver to the Planning Department a cashier's check or money order made payable to the County Clerk in the amount of Sixty -Four Dollars ($64.00) for the County administrative fee, to enable the City to file the Notice of Exemption as provided under Public Resources Code Section 21108(b) and California Code of Regulations Section 15062. If within said forty-eight (48) hour period the applicant has not delivered to the Planning Department the check as required above, the approval for the project granted shall be void by reason of failure of condition (Fish and Game Code Section 711.4(c). General Requirements 2. The permittee/applicant shall indemnify, protect and hold harmless, the City and any agency or instrumentality thereof, and/or any of its officers, employees, and agents from any and all claims, actions, or proceedings against the City, or any agency or instrumentality thereof, or any of its officers, employees, and agents, to attack, set aside, void, annul, or seek monetary damages resulting from an approval of the City, or any agency or instrumentality thereof, advisory agency, appeal board or legislative body including actions approved by the voters of the City, concerning the Planning Application which action is brought within the appropriate statute of limitations period and Public Resources Code, Division 13, Chapter 4 (Section 21000 et seq., including but not by the way of limitations Section 21152 and 21167). The City shall promptly notify the permittee/applicant of any claim, action, or proceeding brought forth within this time period. The City shall estimate the cost of the defense of the action and applicant shall deposit said amount with the City. City may require additional deposits to cover RAProduct Review\Rodpaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-5-19-04.doc 4 anticipated costs. City shall refund, without interest, any unused portions of the deposit once the litigation is finally concluded. Should the City fail to either promptly notify or cooperate fully, permittee/applicant shall not, thereafter be responsible to indemnify, defend, protect, or hold harmless the City, any agency or instrumentality thereof, or any of its officers, employees, or agents. Should the applicant fail to timely post the required deposit, the Director may terminate the land use approval without further notice to the applicant. 3. This approval shall be used within two (2) years of the approval date; otherwise, it shall become null and void. By use is meant the beginning of substantial construction contemplated by this approval within the two (2) year period which is thereafter diligently pursued to completion or the beginning of substantial utilization contemplated by this approval. 4. Building elevations shall substantially conform to the approved Exhibits, including elevations, floor plans, landscaping plans, hardscape plans, and plotting plan, contained on file with the Planning Department or as amended by these Conditions of Approval. 5. The colors and materials (including lighting) for this project shall substantially conform to the approved colors and materials contained on file with the Planning Department. Any deviation from the approved colors and materials shall require approval of the Director of Planning. 6. This approval is for product review only and shall in no way limit the city or other regulatory or service agencies from applying additional requirements and/or conditions consistent with applicable policies and standards upon the review of grading, building and other necessary permits and approvals for the project. 7. The Development Code requires double garages to maintain a minimum clear interior dimension of 20' x 20'. This shall be clearly indicated on the plans prior to the issuance of building permits for the project. Interior dimensions are measured from the inside of garage wall to the opposite wall, steps, landing, equipment pedestals, bollards or any similar type feature. When the top of the stem wall is more than 8" above the garage floor, the required dimension is measured from the inside edge of the stem wall. 8. Applicant shall obtain the proper permits before construction, including Encroachment Permit from the Public Works Department for any work done in the City right-of-way, and Building Permit from the Building and Safety Department. 9. Fire Hydrants shall be installed prior to the start of any construction at the site. 10. Driveway widths shall comply with the driveway width requirements per City Standards. In order to allow for adequate street parking, the driveway widths at curbs will be limited to 24' maximum. 11. All Spanish Revival and Monterey styles shall utilize a smooth to light texture stucco finish (20/30 aggregate or smoother) as determined acceptable by the Planning Director. East Coast Traditional styles shall utilize a light -medium (16/20 aggregate) finish. 12. Monterey and Spanish Revival shall include arched focal points. Each focal point shall be unique for the appropriate style. Focal points may include arched doors, windows, or other forms as determined acceptable by the Planning Director. R:\Product RevievARoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-5-19-04.doC 5 13. All Monterey styles shall utilize a Spanish style tile roof. 14. All Spanish Revival styles shall include a. Barrel tile clay roof. 15. One style of each plan shall provide a roof plan that is clearly different than the other styles in order to provide variation along the front and rear street scene. 16. The Spanish Revival and/or Monterey shall include an additional material(s) such as brick or stone to differentiate between the styles. 17. All materials such as stone, brick and siding shall wrap around the side yard to the fence return or as determined acceptable by the Planning Director. 18. Fencing on corner lots shall be pulled back towards the rear on exterior corner lots to open up the exposed elevation to the street as determined acceptable by the Planning Director. 19. Fencing between units (on interior side yards and rear yards, but excluding view fencing) where not visible from the street shall be wood fence as shown in figure 2-15 (privacy fencing) or as approved by the Planning Director. 20. Fencing along lot 1, adjacent to the paseo trail shall include a low slumpstone wall for the first 20.feet and transition into a 6-foot project wall as shown in figure 4-38 (Paseo entry). Prior to the Issuance of Grading Permits 21. The applicant shall submit a Grading Plan, subject to the review and approval of the Planning Department. 22. The applicant shall sign both copies of the final conditions of approval that will be provided by the Planning Department staff, and return one signed set to the Planning Department for their files. 23. The applicant shall submit to the Planning Department for permanent filing two (2) 8" X 10" glossy photographic color prints of the Color and Materials Boards and of the colored version of the approved colored architectural elevations to the Planning Department for their files. All labels on the Color and Materials Board and Elevations shall be readable on the photographic prints. 24. A street tree master plan indicating what tree species will be planted on each street shall be submitted. The plan should graphically show the locations of all trees. One tree species per street shall be provided. Prior to the Issuance of Building Permits 25. The applicant shall comply with standards conditions and requirements set forth in the Roripaugh Ranch Specific Plan, Mitigation Monitoring Program, conditions of approval for Tract Map 29353 (PA01-0230, A -Map), Tract Map 29661(PA01-0253, B-Map), and Ordinance No. 02-14, the Development Agreement between the City of Temecula and Ashby USA, LLC for the Roripaugh Ranch Specific Plan, including, but not limited to attachment "5", which requires various on and off -site improvements. RAProduct RevievARoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03.0725\Draft Resolution w CofA-5.19-04.doc 6 26. The applicant shall submit street lighting and signage plans to the Planning Director for final approval. Street lighting shall comply with the Specific Plan, Riverside County Mt. Palomar Lighting Ordinance, and the mitigation -monitoring program. Said lighting shall comply with the standards as set forth in the Mitigated Monitoring Program and install hoods or shields to. prevent either spillage of lumens or reflections into the sky (lights must be downward facing). 27. The applicant shall submit mailbox elevations and a plot plan clearly indicating the location of each mailbox area. Mailbox type and location shall be subject to the approval of the Postmaster and Planning Director. 28. Prior to issuance of any residential building permit within Planning Area 4A, the construction landscape and architectural plans for Paseos (including hardscaping,- landscaping, fencing, lights and gates), Paseo gates Staff Gated Primary Entry, Card Key Entry, fuel modification zones shall be submitted and approved 29. Prior to construction of the Model Home complex, the applicant shall apply for a Model Home complex permit. 30. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings within private common areas for a period of one year, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from the completion of the landscaping. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the bond shall be released. 31. Precise Grading Plans consistent with the approved rough grading plans, plotting plan, structural setback measurements shall be submitted and approved. 32. The developer shall demonstrate to the Planning Director that all homes will have double paned windows with at least a 25 STC rating installed to reduce noise from occasional aircraft over flights. 33. The developer shall provide proof that construction debris, including but not limited to lumber, asphalt, concrete, sand, paper and metal is recycled through the City's solid waste hauler, subject to the approval of the Community Services Department. 34. All design components shall comply with applicable provisions of the 1998 edition of the California Building, Plumbing, Mechanical and Fire Codes; 1998 National Electrical Code; California Administrative Code, Title 24 Energy and Disabled Access Regulations and the Temecula Municipal Code. 35. Obtain all building plans and permit approvals prior to commencement of any construction work. 36. A pre -construction meeting is required with the building inspector prior to commencement of any construction or inspections. 37. Provide appropriate stamp of a registered professional with original signature on plans and structural calculations submitted for plan review. RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-5.19-04.doc 7 38. Provide electrical plan including load calculations and panel schedule for plan review. 39. Schematic plumbing plans, electrical plan and load calculations, along with mechanical equipment and ducting plans shall be submitted for plan review stamped and original signed by an appropriate registered professional. 40. Obtain street addresses from the Building Official prior to submittal of plans for plan review. 41. Signage shall be posted conspicuously at the entrance to the project that indicates the hours of construction, shown below, as allowed by City of Temecula Ordinance No. 94- 21, specifically Section G (1) of Riverside county Ordinance No. 457.73, for any site within one -quarter mile of an occupied residence. Monday -Friday: 6:30 a.m. — 6:30 p.m. Saturday: 7:00 a.m.- 6:30 p.m. No work is permitted on Sunday or Government Holidays Prior to the Issuance of Occupancy Permits 42. All required landscape planting and irrigation shall have been installed consistent with the approved construction plans and shall be in a condition acceptable to the Director of Planning. The plants shall be healthy and free of weeds, disease, or. pests. The irrigation system shall be. properly constructed and in good working order. 11 I 43. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from final certificate of occupancy. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the applicant shall release the. bond upon request. 44. If deemed necessary by the Director of Planning, the applicant shall provide additional landscaping to effectively screen various components of the project. 45. Front yard and slope landscaping, hardscaping'and fencing within individual lots shall be completed for inspection prior to issuance of each occupancy permit (excluding model home complex structures). 46. The developer shall submit proof that all local refuse generators have been provided with written information about opportunities for recycling and waste reduction (i.e. buyback centers, curbside availability), subject to the approval of the Public Works and Community Services Departments. 47. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. R:\Product Review\Rodpaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-5-19-04.doc 8 By placing my signature below, I confirm that I have read, understand and accept all the above Conditions of Approval. I further understand that the property shall be maintained in conformance with these conditions of approval and that any changes I may wish to make to the ) project shall be subject to Planning Commission approval. Applicant's Signature Applicant's Name Printed Date RAProduct Review\Roripaugh Ranch SP\Davidson communities Tr 29661-2, PA03-0725\1)raft Resolution w CofA-5-19-04.doc 9 ATTACHMENT NO.3 APRIL 21, 2004 PLANNING COMMISSION STAFF REPORT RAProduct Reviev.\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\pc sr memo 5-19-04.doc 5 Date of Meeting: Prepared by: _ STAFF R&ORT — PLANNING CITY OF TEMECULA PLANNING COMMISSION April 21, 2004 Dan File Number PA03-0725 Title: Associate Planner Application Type: Product Review Project Description: Planning Application No. PA03-0725, submitted by Davidson Communities, is a product review for 99 detached single-family residences within Planning Area 2 in the Roripaugh Ranch Specific Plan, located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road (Tract 29661-2). Plan 1, two story 2,840 square feet (30 units) Spanish Revival (7 units) East Coast Traditional (13 units) Monterey (10 units) Plan 2, two story 3,178 square feet (33 units) Spanish Revival (9 units) East Coast Traditional (13 units) > Monterey (11 units) Plan 3, two story 3,362 square feet (36 units) Spanish Revival (12 units) East Coast Traditional (11 units) Monterey (13 units) Recommendation: ® Approve with Conditions ❑ Deny ❑ Continue for Redesign ❑ Continue to: ❑ Recommend Approval with Conditions ❑ Recommend Denial CEOA: ® Categorically Exempt (Class) 15161 ❑ Negative Declaration ❑ Mitigated Negative Declaration with Monitoring Plan ❑ EIR R9Product Review\Roripaugh Ranch SPtDavidson Communities Tr 29661-2, PA03-0725VSTAFP REPORT-Ldoc 1 PROJECT DATA SUMMARY Applicant: Paula Lombardi, Davidson Communities Completion Date: February 20 2004 Mandatory Action Deadline Date: May 20 2004 General Plan Designation: Low Medium Residential (LM) Zoning Designation: Low Medium Residential (LM) Site/Surrounding Land Use: Site: Vacant North: South: East: West: Lot Area: Total Floor Area/Ratio N/P Landscape Area/Coverage NIP 5,000 square foot minimum (range 5,025 sq. ft —13 080 sq ft.) Parking Required/Provided 2 covered enclosed spaces (20' x 20') BACKGROUND SUMMARY ®1. Staff has worked with the applicant to ensure that all concerns have been addressed, however, various issues have not been resolved to the satisfaction of staff. See Attachment "4" (letter to applicant dated January 21, 2004), requesting revisions. On January 22, 2003, staff met with the applicant to discuss staff's comment letter. Staff discussed the requirements within the Roripaugh Ranch Design Guidelines, including the single story, stucco finishes, additional materials such as stone or brick, the possibility of adding an additional floor plan and choosing a different style in order to distinguish between the styles and focal points to show importance. It was also discussed that the Design Guidelines require four sided architecture, two front elevations on corner lots and variation in the roof plan and silhouette. The applicant feels the proposed design is consistent with the Specific Plan and has requested a public hearing before the Planning Commission. R..\Product Review\Roripaugh Ranch SPOavidson Communities Tr 29661-2, PA03-0725\STAFF REPORT-1 Aoc 2 ANALYSIS The applicant has proposed three (3) floor plans and three (3) architectural styles. The applicant has chosen the option of Design Group E (pg. 4-97) from the Specific Plan, which allows the use of one style from the Design Groups A-D (Attachment 2). The applicant has provided many features encouraged in the Design Guidelines such as a variation in garage locations and Porte Cocheres. Each plan includes a varied garage setback ranging from 14 feet to 21 feet (Plan 1), and 33 feet (Plan 2). Plan 3 is not considered an architectural forward product, even though the garage is slightly recessed (4 feet proposed, 8 feet minimum is required to be considered architectural forward) behind the living space. Plan 2 also includes a Porte Cochere in conjunction with the deep recessed garage, which provides additional articulation as well as a single story element along the street scene. A trellis is proposed over the garage on Plan 1, which functions as an accent element for the East Coast Traditional style. Staff feels that the project does not entirely meet the Design Guidelines, however, if enhancements are provided, the project could be found to be consistent with the Design Guidelines within Specific Plan. Staff has broken down the comments into the following categories: The architecture (single story, corner lots, variation between styles, materials, roofing, entries, doors, four sided architecture, windows, and stucco finish), fencing, and landscaping. Architecture Single Story: A single story product has not been proposed. The Specific Plan is not clear whether single story products are required in all planning areas. The language in the Specific Plan allows the issue to be resolved by staff. Staff feels that the project provides various single story elements, which break up the street scene, as well as, the overall silhouette of the planning area. Plans 1 and 2 include mid to deep recessed garages which break up the massing along the front elevation. Said plans also step the second story back away from the recessed garage as well as from the first floor wall plane on the side elevations. By stepping the second story back from the wall plane of the first floor, it will open up the side yards to additional light and provide single story massing along the street. Corner Lots: The corner lots do not appear to create a second front elevation. The Design Guidelines require corner lots to create "two front elevations". Staff feels that the side elevations do not appear as a second front elevation. Staff has recommended that the applicant pull the fence and pilasters back towards the rear of the site to open up the side elevations, which would display the architecture, however the applicant does not agree with staff. By pulling the fence and pilaster back, it would open up the courtyard on Plan 3. Staff has used this technique on other projects along with the use of decorative walls with wrought iron fencing, trellises, and other decorative features to produce a second front elevation. As proposed, the applicant has all three floor plans on corner lots. Staff has recommended that the applicant provide a side elevation specifically for corner lots or provide an additional floor plan plotted on corner lots. Each side elevation of each floor plan, exposed to the street needs additional enhancement to satisfy the second front elevation standard. Variations of Style: The applicant, has not provided sufficient variation between the proposed architectural styles. Staff recommended that the applicant propose a different architectural style, which will allow the styles to offer greater variation, however the applicant has decided tc R:\Product Review\Roripaugh Ranch SP%Davidson Communities Tr 29661-2. PA03-0725SSTAFF REPORT-l.dm 3 maintain the proposed styles. Staff feels that the Monterey and Spanish Revival offer too many similarities in shape, form and materials that create a difficulty for providing variety between the styles. Staff suggested that alternative materials such as stone or brick be used to offer variation between the styles, however, the applicant has not proposed any additional materials. As proposed, staff feels there is too much stucco on the Monterey and Spanish Revival. While stucco is a typical element of these styles, staff feels that these styles are too complimentary and an alternative style should be used or alternative materials and forms should be incorporated to clearly distinguish between the styles. Roof & Silhouette: In order to provide a varied street scene, variety in each roof plan needs to be provided. Staff feels that the applicant has proposed roof plans and silhouettes that are too similar for each plan. While there are variations between the plans, the primary silhouette has not changed. Staff recommended significantly changing one roof plan of each plan in order to provide variation. The applicant has provided a good example of a variation in the roof plan that satisfies this concern on Plan 3; however Plans 1 and 2 do not include a significant amount of variation. The Plan 3 Monterey style includes a lateral roof as opposed to vertical (Spanish Revival and East Coast Traditional), which is the type of variation staff feels is necessary for each plan. In addition, the Monterrey and Spanish Revival proposed the same S roof tile style. The Design Guidelines require Spanish tile roof for Monterey and Barrel tile clay roofing for Spanish Revival. Staff recommends the roofing to be changed as mentioned in the Design Guidelines along with changing one roof plan of each floor plan to significantly vary from the other plans in order to provide variety for the street scene. Focal Points: The Design Guidelines encourage focal points to show interest for entries and doors. Staff has requested the use of double doors, glass sidelights, surrounding frames and molding around the door as mentioned in the Design Guidelines. The applicant has not provided any double doors, doors with glass, or glass sidelights. The applicant has proposed a foam trim frame around the entry door for each East Coast Traditional Plan, however staff feels that additional enhancement is required for all plans and styles. The Design Guidelines state the following "Emphasis shall be placed on the design and type of entry door used. It functions as the major introduction to the introduction to the interior of the house and concern should be given on the image it creates." Four -Sided Architecture: Staff has interpreted the four sided architecture requirement to mean that the architectural style is evident from any side of the residence. Staff feels that the applicant has not completely satisfied this standard. Staff recommends additional arched windows to be carried over where necessary, variation in the window trim and sills should be provided as well as, a variation in the materials. Staff feels the similarities of Spanish Revival and Monterey compound this issue. However, staff also feels that the East Coast Traditional style could enhance the side and rear elevations by adding and wrapping additional siding to the sides and rears. In addition, staff recommends that the applicant provide decorative windows sills on each elevation for each style to reflect the architectural theme and further satisfy the four sided architecture requirement. Stucco Finish: The Design Guidelines state that smooth plaster walls are a typical feature for Spanish Revival. While the Design Guidelines do not mention a specific stucco finish for Monterrey, staff's research has shown that typical Monterrey stucco finish is a light to smooth finish. The applicant is proposing a light to medium sand finish. Staff feels that a light sand finish provides the smooth appearance typical for Spanish Revival and Monterey. The stucco finish for East Coast Traditional style is not as specific; staff feels a light finish is adequate, however, typical East Coast styles primarily utilize siding material. RAProduct Review\Roripaugh Rauch SP\Davidson Communities Tr 29661-2, PA03-0725\STAFF REPORT-] aloe 4 Fencing The applicant has complied with the standards set forth in the Specific Plan; however there are some minor inconsistencies that need to be addressed. In addition, there is one element that the applicant and staff do not agree upon. The legend on the fence plan appears to show low slump stone walls between units. After speaking with the applicant, staff feels this is an error and that solid wood fencing was intended between units. The project has been conditioned accordingly. The paseo trail along lot one should include a low slumpstone wall for the first 20 feet and transition into a solid 6-foot slumpstone wall. The project has been conditioned accordingly. The primary issue that has not been agreed upon is the location of fencing on corner lots. Staff feels that fencing on corner lots should be pulled back towards the rear of the lot in order to open up the side yard and expose the architecture and provide the second front elevation as required in the Specific Plan. Staff has found this to be a success on previous projects, primarily where a courtyard is proposed because it adds a feature similar to a porch, albeit on the side elevation. The applicant has proposed a solid wall along the side elevation up to the front portion of the residence, thus blocking the majority of the architecture/residence. Staff feels the intent of the Design Guidelines is to open up the side yards to portray the architecture and appear as a second front elevation. A solid wall will close off the architecture and will not portray a front elevation. Landscaping The applicant has provided front yard landscaping consistent with the Specific Plan. In addition, the applicant has proposed decorative pavers along with colored concrete for the driveway. Staff feels this is a positive feature which will add variety to the street scene and add to the overall ambiance of the project. ENVIRONMENTAL DETERMINATION ® 1. The proposed project has been determined to be consistent with the previously approved (Negative Declaration) (EIR) and is exempt from further Environmental Review (CEQA Section 15162 subsequent EIR's and Negative Declarations). CONCLUSION/RECOMMENDATION Staff feels that the project needs to be enhanced in order to be found consistent with the Design Guidelines and the Specific Plan. While the applicant has complied with many of the standards and recommended guidelines, staff feels that additional enhancement is required in order to recommend approval. Staff feels that appropriate Conditions of Approval could be applied in order to make the findings for approval. Based on the analysis summarized in this report, staff has determined that the findings required for approval can be made with the appropriate Conditions of Approval. FINDINGS Development Plan (Code Section 17.05.01 OF The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the city. RAProduct Review\Roripaugh Rauch SPDavidson Communities Tr 29661-2, PA03-072537'AFF REPORT-] aloe 5 The proposed single-family homes are permitted in the Low Medium Density land use designation standards contained in the Roripaugh Ranch Specific Plan and the City's i Development Code. The project is also consistent with the Low Medium land use designation contained in the General Plan. The site is properly planned and zoned, and as conditioned, is physically suitable for the type and density of residential development proposed. The project, as conditioned, is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the City Wide Design Guidelines, and fire and building codes. 2. The overall development of the land is designed for the protection of the .public health, safety, and general welfare. The overall design of the single-family homes, including the site, building, parking, circulation and other associated site improvements, is consistent with, and intended to protect the health and safety of those working in and around the site. The project has been reviewed for, and as conditioned, has been found to be consistent with all applicable policies, guidelines, standards and regulations intended to ensure that the development will be constructed and function in a manner consistent with the public health, safety and welfare. ATTACHMENTS Plan Reductions — Blue Page 7 2. Roripaugh Ranch Design Guidelines Excerpt — Blue Page 8 3. PC Resolution No. 2004-_ — Blue Page 9 Exhibit A — Conditions of Approval 4. Letter to applicant dated January 21, 2004 — Blue Page 10 5. Response letter from applicant dated January 29, 2004 — Blue Page 11 RAProduct Review\Roripaugh Ranch SMavidson Communities Tr 29661-2, PA03-0725\STAFF REPORT-Ldoe 6 m ATTACHMENT NO.1 PLAN REDUCTIONS R:Wroduc[ Review\Roripaugh Ranch SMavidson Co=mifies Tr 29661-2, PA03-0725\STAFF REPORT-l.dm 7 e - laI7 T I Imm MEN ad I x U z 7 U 0 0 x U I y ►'l�i1 p Q ° U V x I �_.. »G .. \/ » �\\ {� ( 2 3� _ ate§ }� ) - � � \� . «2\ L2 0 ATTACHMENT NO.2 RORIPAUGH RANCH DESIGN GUIDELINES EXCERPT RAProduct Review\Rotipaugh Ranch S?Davidson Communities Tr 29661-2, PA03-0725SSTAFF REPORT-Ldoc 8 FIGURE 4-53 EAST COAST TRADITIONAL Inspiration Photo: The Keith Companiesl� /A N 0 T T 0 3 C A L /E Design features: - Covered front porch entry - Multi -pane windows - Stucco trim detailing - Flat arch openings - Hip/gable combination roof shapes - Exterior plaster walls - Boxed overhangs (6 C O L � 0' U� c w i.,. _ . �_ � •. ': �.., -' (w?�iii'TF�'� t r � _. - �. f: I �I � t , ■� v ;y a �. + Y� s. �� �a:i yy:ilii! �� „i��i.� ill a DESIGN GUIDELINES Provide two color sets of the above at the scales indicated including a duplicate set of the color and materials board. In addition, provide six (6) sets of the above in reduced, 11" x 17" black and white format. 4.10.3.3 Architecture Forward and Garage Standards The following standards shall apply to all residential Planning Areas, except as specified: "Architectural Forward" concept shall be incorporated into 100% of the homes in Planning Areasl0, 19, 20, 21, and 33A. "Architectural Forward" concept shall be incorporated into at least 50% of the homes in each of Planning Areas 1 A, 2, 3, 4A, 413, 12, 14, 15, 16, 17, 18, 22, 23, 24, and 31. This concept includes advancing the architecture of the living space forward on the lot while concurrently, the garage is held in place or further recessed. Residential dwelling units shall be designed to allow the living portion of the dwelling unit to be "positioned" forward on the lot so that the architecture of the garage will not dominate the street scene. • A variety of garage placement solutions shall be incorporated into the overall design of the homes. Minimum driveway length from the property line to the garage door shall be eighteen feet (18') for front -entry garages in all Planning Areas and ten feet (10') from the property line to the garage edge for side entry garages in the L and LM Districts. Garage solutions that should be incorporated into the overall design are as follows: Shallow Recessed Garages (See Figure 4-62) Setting the garage back a minimum of eight feet (8) in relationship to the front of the house. Mid to Deep Recessed Garages (See Figure 4-63) ( ^ 1 Setting the garage back to the middle or rear of the lot. Third Car Side Loaded (See Figure 4-64) Setting for garage with side -loaded entry. This plan can only occur on larger lots. Side Entry Garages (See Figure 4-65) The use of side entry garages on lots at least 52 feet wide in order to break the continuous view of garage doors along the street scene. Third Car Tandem (See Figure 4-66) Setting for third car tandem garage. Single Width Driveways (See Figure 4-67) This setting provides a maximum driveway width of twelve (12) feet for adjacent two -car garage. Porte Cochere (See Figure 4-68) Setting provides for the incorporation of a porte cochere. Roripaugh Ranch Specific Plan 4-98 N,\31367.000\dod\SPSecl44CCAdopted.doc - March, 2003 DESIGN GUIDELINES Articulation of Side and Rear Elevations There is a tendency to have "build out" planes maximized on side and rear yards without articulated treatment of those planes. This results in a two-story stucco effect with no vertical or horizontal relief. Utilize the following techniques or other acceptable techniques to avoid this effect: • Create a single -story plane at the rear by recessing the second story. • Utilize other similar architectural treatments and designs such as balconies or pop out staircases to encourage relief on potential large architectural planes. • Side and rear elevations shall have articulation with modulated facades, window treatment, second story projections and balconies. • Articulation shall be provided on all sides of the homes ("Four-sided Architecture"). Front Elevations • Architectural projections shall be utilized to emphasize entrances, balconies, and porches. Fronts of houses shall utilize several architectural features. Ground floor windows shall have significant trim or relief, second floor overhangs or built in planters. Second story windows shall have similar treatment to emphasize them. • All residences shall incorporate entry courtyards, covered entries or covered porches at the entry into the design. (See Figure 4-71 and 4-72). • Details shall be concentrated around entrances. Materials used for the front entry shall be distinctive. • Building elements that reflect the architectural style should be incorporated into building entries, windows, front porches, and living areas directly adjacent to the street. • Ornamental features including wrought iron and exterior light features shall be combined with other features to create interest in the front of the house with architecturally compatible elements. Rod�uchRanch Specific Plan 4-125Specific Plan 4-125 N:\31367.000\dod\SPSect44CCAdopted.doc March, 2003 DESIGN GUIDELINES 4.10.3.6 Architectural Elements A successful project design achieves a proper visual balance and sense of cohesiveness. The 4 differences between the plans and elevation must be readily discernable and create variety, yet at the same time elements, styles and materials should not contrast to such an extent as to result in visual chaos. Architectural elements will play a significant role in the establishment of the architectural style. These elements include architectural detailing, colors and materials, and other site structures. The required Architectural and design elements techniques are as follows: Unit Entries (See Figures 4-71 and 4-72) The entry serves several important architectural and psychological functions: it identifies and frames the front doorway, it acts as an interface between the public and private spaces; and it acts as an introduction to the structure while creating an initial impression. • The entry shall be designed and located so as to readily emphasize its prime functions. Accent materials are encouraged to be used to further emphasize the entries. • If the front door location is not obvious or visible because of building configuration, the entry shall direct and draw the observer in the desired path. The design of the entry area in merchant -built housing shall be strong enough to mitigate the impact of the garage on the facade. • Entry doors and doorways shall be proportional to the architectural style of the structure. • Covered entries, courtyards and porches shall be provided as entry elements. Doors Emphasis shall be placed on the design and type of entry door used. It functions as the major introduction to the interior of the house and concern should be given on the image it creates. • Either single or double doors are appropriate. • The door shall be covered by an overhead element or recessed a minimum of 3 it into the wall plane. • The entire door assembly shall be treated as a single design element including surrounding frame, molding and glass sidelights. • Recessed doors may be used to convey the appearance of thick exterior doors. • Wood may be used for the entry door. Wood grain texture and raised or recessed panels contribute to the appeal of the door. Greater use is being made of metal entry doors but in order to be acceptable, they shall possess the same residential "feel' provided by the wood grain and panels. • Doorways shall be typically rectangular or round -headed and fully recessed. Spiral columns, arches, pilaster, stonework, decorative tiles, or other sculptural details shall be integrated into the doorway design to enhance the visual importance of the entry door. Rorioauah Ranch Specific Plan 4 127 N:�31367.000klod\SPSect44CCAdopted.doc March, 2003 DESIGN GUIDELINES • The use of glass in the door and overall assembly is encouraged. It expresses a sense of welcome and human scale. It can be incorporated into the door panels or expressed as single sidelights, double sidelights, transom glass or fan windows. • Flexibility is allowed concerning the color of the door. It may match or contrast the accent trim, but should be differentiated from the wall color. Windows Typically, the location of windows is determined by the practical consideration of room layout, possible furniture placement, view opportunities and concern for privacy. Greater design emphasis should be directed to ensure that window placement and organization will positively contribute to the exterior architectural character. Windows greatly enhance the elevation through their vertical or horizontal grouping and coordination with other design elements. This relationship to one another and the wall/roof plane creates a composition and sense of order. • All windows in a specific plan elevation shall be integrated into the architecture of the building. This should not be interpreted that they are all the same shape, size or type but rather that a hierarchy of windows exists that visually relates and complements one window to another. • Windows shall be recessed to convey the appearance of thick exterior walls. Non -recessed windows shall be surrounded with articulated architectural elements such as wood trim, stucco surrounds, shutters or recessed openings, shutters, pot shelves, ledges, sills plantons, and rails that compliment the architecture. • Merchant -built housing occasionally fails to adequately address proper window design and placement on rear and side elevations. This is usually due to prioritization, maintenance and cost factors. Since side elevations and second story rear windows are frequently visible, greater design effort and budget prioritization need to be given. Garage Doors (See Figure 4-73) • Utilizing garage types that compliment the architecture, door designs, and plotting techniques will do much to lessen the repetitious garage doors marching down both sides of a residential street. Variations include: o Employment of second -story feature windows above the garage. o Strong architectural entry elements. o Designs with a mix of 2 and 3 car garages, incorporating three single doors in some three car garage plans not facing the street. o Allowance for a 10-foot setback between adjacent garages. o The use of tandem garages may also be incorporated into the building design. o Garage plans with a double door and a single door plan shall not be placed next to each other. • If applicable, where lot width permits plans should include swing -in or side entry garages with reduced front yard setbacks of ten (10) feet. 1106gaugh Ranch Specific Plan 4-126 N;V31367.000Wod\SPSec144CCAdopted.dm March, 2003 DESIGN GUIDELINES • The design of the garage door shall relate to the overall architectural design of the residence. Colors shall be from the same paint palette. • Ornamentation of garage doors shall be provided to add visual interest from the street scene. 4 • The use of the sectional, wood or metal, rolling garage door is required since it maximizes the availability of useable driveway length. • Several different panel designs shall be utilized for any project proposed by each merchant builder. Metal doors shall only be used when they include either texture or raised panels of a "residentiar nature. The use of window elements is encouraged. • The design of the door face shall result in a treatment which breaks up the expanse of the door plane while being complimentary to the architectural elevation of the residence. Architectural detail consisting of cornices, applied molding or trim or applied headers shall be used. There shall be an 8" recess. (See Exhibit 4-73). ROdpeUOh Ranch Specific Plan 4 129 N:G31367.000\dod\SPSect44CCAdopted.doc March, 2003 DESIGN GUIDELINES 4.10.3.7 Residential Roof Form Allowable Roof Pitch (See Figure 4-74) • Allowable roof pitches of 3:12 to 4:12 shall be used. Allowable roof pitches over balconies and/or porches may be 2:12. • A single roof pitch should be used on opposite sides of a ridge. Shallow pitches tend to lessen the apparent building mass. Roof Types The use of different roof types will add variety and interest to the street scene. Changing the roof form on a given plan is the best method of creating alternative elevations. However, the roof characteristics should be consistent with the historical style that is chosen. • Hip, gable and shake -like material shall be used separately or together on the same roof. Avoid a canyon effect in side yards when both buildings have front -to -rear gables, by providing dormer or hip elements. • Repetitious gable ends along rear elevations shall be avoided. Roof forms with pitch changes at a porch or projection are preferable. • Roof forms having dual pitches such as Gambrel or Mansard shall not be used. • Maximize variations in rooflines by offsetting roof planes and combining single -story elements with two-story elements. Long uninterrupted rooflines should be avoided. Mechanical f equipment is not permitted on roofs. Design of Rakes and Eaves • The designer may choose from a variety of rake and eave types based on climatic and stylistic considerations. • Moderate or extended overhangs are acceptable if properly designed. Tight fascia with appropriate style are acceptable. • Single or double fascia boards, exposed rafters, or fascias with planscias when adequately scaled, are acceptable. • Care shall be taken to ensure that material sizes avoid a weak or flimsy appearance. Overhang Projections and Covered Porches • Substantial overhangs are required as a response to solar and climatic conditions. • The inclusion of covered porches and entries are required as part of the product mix. They expand sheltered living space, create entry statements and provide elevation/relief. • Rear covered porches may differ from the roof in both pitch and material, but front porches should retain at least one of these two characteristics. Roripaugh Ranch Specific Plan 4-133 W31367.000\dodwSPSect44CCAdopted.doc March, 2DO3 ASHBY USA. LLC FIGURE 4-70 6rno Cf=' MV KAASyJff& tl �RTIG � Y SAY Y Ar cccc Mix or 4VqIwo Mil R Y 4 -0, c� Cu t �O l T O X .E Q CO 4— O O W- N �L \Cu Th. K.Itb C.m,.Mecl�C , i K 0, T 0 s 0 A E Rorlpaugh ,, Ranch ATTACHMENT NO.3 PC RESOLUTION NO 2004 RAProduct Review\Roripaugh Rauch SP\Uavidsou Comities Tr 29661-2, PA03-0725\STAFF REPORT-Ldm 9 PC RESOLUTION NO.2004- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA03-0725 A PRODUCT REVIEW FOR 99 DETACHED SINGLE FAMILY RESIDENCES WITHIN PLANNING AREA 2 OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUTH OF MURRIETA HOT SPRINGS ROAD, KNOWN AS TRACT MAP 29661-2. WHEREAS, Davidson Communities, filed Planning Application No.PA03-0725, in accordance with the City of Temecula General Plan and Development Code; WHEREAS, Planning Application No. PA03-0725 was processed including, but not limited to public notice, in the time and manner prescribed by State and local law; WHEREAS, the Planning Commission considered Planning Application No. PA03-0725 on April 21, 2004 at duly noticed public hearings as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter; WHEREAS, at the conclusion of the Commission hearing and after due consideration of the testimony, the Commission approved Planning Application No. PA03-0725; NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: j Section 1. That the above recitations are true and correct and are hereby incorporated by reference. Section 2. Findings. The Planning Commission, in approving Planning Application No. PA03-0725 hereby makes the following findings as required by Section 17.05.010.F of the Temecula Municipal Code: A. The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the city. The proposed single-family homes are permitted in the Low Medium Density land use designation standards contained in the Roripaugh Ranch Specific Plan and the City's Development Code. The project is also consistent with the Low Medium land use designation contained in the General Plan. The site is properly planned and zoned, and as conditioned, is physically suitable for the type and density of the residential development proposed. The project, as conditioned, is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the City Wide Design Guidelines, and fire and building codes. B. The overall development of the land is designed for the protection of the public health, safety, and general welfare. The overall design of the single-family homes, including the site, building, parking, circulation and other associated site improvements, is consistent with, and intended to R:\Product Review\Roripaugh Ranch SP\Davidson communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 1 protect the health and safety of those working in and around the site. The project has been reviewed for, and as conditioned, has been found to be consistent with all applicable policies, guidelines, standards and regulations intended to ensure that the / development will be constructed and function in a manner consistent with the public health, safety and welfare. Section 3. Environmental Compliance. A Notice of Exemption for Planning Application No. PA03-0725 was made per the California Environmental Quality Act Guidelines Section 15162. This section applies when an Environmental Impact Report (EIR) has been certified and there are not substantial changes not discussed or examined in the EIR. Section 4. Conditions. That the City of Temecula Planning Commission hereby conditionally approves Planning Application No. PA03-0725 for a Product Review for detached single family residences within Planning Area 2 of the Roripaugh Ranch Specific Plan located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road, Tract Map 29661-2. The Conditions of Approval are contained in Exhibit A. Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 21 st day of April 2004. John Telesio, Chairperson ATTEST: Debbie Ubnoske, Secretary (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that PC Resolution No. 2004-_ was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 215t day of April 2004, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary t RAProduct Review\Rodpaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 2 EXHIBIT A l CONDITIONS OF APPROVAL RAProduct RevievARoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w COfA-4-21-04.doc 3 EXHIBIT A CITY OF TEMECULA CONDITIONS OF APPROVAL Planning Application No. PA03-0725 Project Description: A Product Review for 99 detached single family residences within Planning Area 2 of the Roripaugh Ranch Specific Plan located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road, Tract Map 29661-2. Tentative Tract No.: DIF Category: Approval Date: Expiration Date: PLANNING DEPARTMENT 29661-2 Per Development Agreement April 21, 2004 April 21, 2006 Within Forty -Eight (48) Hours of the Approval of this Project 1- The applicant shall deliver to the Planning Department a cashier's check or money order made payable to the County Clerk in the amount of Sixty -Four Dollars ($64.00) for the County administrative fee, to enable the City to file the Notice of Exemption as provided under Public Resources Code Section 21108(b) and California Code of Regulations Section 15062. If within said forty-eight (48) hour period the applicant has not delivered to the Planning Department the check as required above, the approval for the project granted shall be void by reason of failure of condition (Fish and Game Code Section 711.4(c). General Requirements 2. The permittee/applicant shall indemnify, protect and hold harmless, the City and any agency or instrumentality thereof, and/or any of its officers, employees, and agents from any and all claims, actions, or proceedings against the City, or any agency or instrumentality thereof, or any of its officers, employees, and agents, to attack, set aside, void, annul, or seek monetary damages resulting from an approval of the City, or any agency or instrumentality thereof, advisory agency, appeal board or legislative body including actions approved by the voters of the City, concerning the Planning Application which action is brought within the appropriate statute of limitations period and Public Resources Code, Division 13, Chapter 4 (Section 21000 et seq., including but not by the way of limitations Section 21152 and 21167). The City shall promptly notify the permittee/applicant of any claim, action, or proceeding brought forth within this time period. The City shall estimate the cost of the defense of the action and applicant shall deposit said amount with the City. City may require additional deposits to cover anticipated costs. City shall refund, without interest, any unused portions of the deposit once the litigation is finally concluded. Should the City fail to either promptly notify or cooperate fully, permittee/applicant shall not, thereafter be responsible to indemnify, RAProduct RevievARoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 4 defend, protect, or hold harmless the City, any agency or instrumentality thereof, or any of its officers, employees, or agents. Should the applicant fail to timely post the required deposit, the Director may terminate the land use approval without further notice to the applicant. 3. This approval shall be used within two (2) years of the approval date; otherwise, it shall become null and void. By use is meant the beginning of substantial construction contemplated by this approval within the two (2) year period which is thereafter diligently pursued to completion or the beginning of substantial utilization contemplated by this approval. 4. Building elevations shall substantially conform to the approved Exhibits, including elevations, floor plans, landscaping plans, hardscape plans, and plotting plan, contained on file with the Planning Department or as amended by these Conditions of Approval. 5. The colors and materials (including lighting) for this project shall substantially conform to the approved colors and materials contained on file with the Planning Department. Any deviation from the approved colors and materials shall require approval of the Director of Planning. 6. This approval is for product review only and shall in no way limit the city or other regulatory or service agencies from applying additional requirements and/or conditions consistent with applicable policies and standards upon the review of grading, building and other necessary permits and approvals for the project. The Development Code requires double garages to maintain a minimum clear interior dimension of 20' x 20'. This shall be clearly indicated on the plans prior to the issuance of building permits for the project. Interior dimensions are measured from the inside of garage wall to the opposite wall, steps, landing, equipment pedestals, bollards or any similar type feature. When the top of the stem wall is more than 8" above the garage floor, the required dimension is measured from the inside edge of the stem wall. 8. Applicant shall obtain the proper permits before construction, including Encroachment Permit from the Public Works Department for any work done in the City right-of-way, and Building Permit from the Building and Safety Department. 9. Fire Hydrants shall be installed prior to the start of any construction at the site. 10. Driveway widths shall comply with the driveway width requirements per City Standards. In order to allow for adequate street parking, the driveway widths at curbs will be limited to 24' maximum. 11. All Spanish Revival and Monterey styles shall utilize a smooth to light texture stucco finish (20/30 aggregate or smoother) as determined acceptable by the Planning Director. East Coast Traditional styles shall utilize a light -medium (16/20 aggregate) finish. 12. Monterey and Spanish Revival shall include arched focal points. Each focal point shall be unique for the appropriate style. Focal points may include arched doors, windows, or other forms as determined acceptable by the Planning Director. 13. All Monterey styles shall utilize a Spanish style tile roof. RAProduct Review\Roripaugh Ranch SP\Davidson communities Tr 29661-2, PA03-0725tDraft Resolution w CofA-4.21-04.doc 5 14. All Spanish Revival styles shall include a Barrel tile clay roof. (� F j 15. One style of each plan shall provide a roof plan that is clearly different than the other styles in order to provide variation along the front and rear street scene. 16. Corner lots shall be appear as a second front elevation and include elements from the front elevation, such as materials, arched focal points, courtyards, patios as approved by the Planning Director. 17. Each style shall include decorative garage doors that provide a variation in style and shall include windows as appropriate, as approved by the Planning Director. 18. Each style and style shall enhance the side a rear elevations to include elements from the front elevation to satisfy the four-sided architecture requirement. This can be accomplished with additional arched windows, siding and/or materials, window sill treatment, or as determined acceptable by the Planning Director. 19. The Spanish Revival and/or Monterey shall include an additional material(s) such as brick or stone to differentiate between the styles. 20. All materials such as stone, brick and siding shall wrap around the side yard to the fence return or as determined acceptable by the Planning Director. 21. Fencing on corner lots shall be pulled back towards the rear on exterior corner lots to open up the exposed elevation to the street as determined acceptable by the Planning \ Director. 22. Fencing between units (on interior side yards and rear yards, but excluding view fencing) where not visible from the street shall be wood fence as shown in figure 2-15 (privacy fencing) or as approved by the Planning Director. 23. Fencing along lot 1, adjacent to the paseo trail shall include a low slumpstone wall for the first 20 feet and transition into a 6-foot project wall as shown in figure 4-38 (Paseo entry). Prior to the Issuance of Grading Permits 24. The applicant shall submit a Grading Plan, subject to the review and approval of the Planning Department. 25. The applicant shall sign both copies of the final conditions of approval that will be provided by the Planning Department staff, and return one signed set to the Planning Department for their files. 26. The applicant shall submit to the Planning Department for permanent filing two (2) 8" X 10" glossy photographic color prints of the Color and Materials Boards and of the colored version of the approved colored architectural elevations to the Planning Department for their files. All labels on the Color and Materials Board and Elevations shall be readable on the photographic prints. 27. A street tree master plan indicating what tree species will be planted on each street shall be submitted. The plan should graphically show the locations of all trees. One tree species per street shall be provided. RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 6 Prior to the Issuance of Building Permits 28. The applicant shall comply with standards conditions and requirements set forth in the Roripaugh Ranch Specific Plan, Mitigation Monitoring Program, conditions of approval for Tract Map 29353 (PA01-0230, A -Map), Tract Map 29661(PA01-0253, B-Map), and Ordinance No. 02-14, the Development Agreement between the City of Temecula and Ashby USA, LLC for the Roripaugh Ranch Specific Plan, including, but not limited to attachment'Y, which requires various on and off -site improvements. 29. The applicant shall submit street lighting and signage plans to the Planning Director for final approval. Street lighting shall comply with the Specific Plan, Riverside County Mt. Palomar Lighting Ordinance, and the mitigation -monitoring program. Said lighting shall comply with the standards as set forth in the Mitigated Monitoring Program and install hoods or shields to prevent either spillage of lumens or reflections into the sky (lights must be downward facing). 30. The applicant shall submit mailbox elevations and a plot plan clearly indicating the location of each mailbox area. Mailbox type and location shall be subject to the approval of the Postmaster and Planning Director. 31. Prior to issuance of any residential building permit within Planning Area 4A, the construction landscape and architectural plans for Paseos (including hardscaping, landscaping, fencing, lights and gates), Paseo gates Staff Gated Primary Entry, Card Key Entry, fuel modification zones shall be submitted and approved 32. Prior to construction of the Model Home complex, the applicant shall apply for a Model Home complex permit. i 33. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings within private common areas for a period of one year, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from the completion of the landscaping. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the bond shall be released. 34. Precise Grading Plans consistent with the approved rough grading plans, plotting plan, structural setback measurements shall be submitted and approved. 35. The developer shall demonstrate to the Planning Director that all homes will have double paned windows with at least a 25 STC rating installed to reduce noise from occasional aircraft over flights. 36. The developer shall provide proof that construction debris, including but not limited to lumber, asphalt, concrete, sand, paper and metal is recycled through the City's solid waste hauler, subject to the approval of the Community Services Department. 37. All design components shall comply with applicable provisions of the 1998 edition of the California Building, Plumbing, Mechanical and Fire Codes; 1998 National Electrical Code; California Administrative Code, Title 24 Energy and Disabled Access Regulations and the Temecula Municipal Code. RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 7 38. Obtain all building plans and permit approvals prior to commencement of any construction work. 39. A pre -construction meeting is required with the building inspector prior to commencement of any construction or inspections. 40. Provide appropriate stamp of a registered professional with original signature on plans and structural calculations submitted for plan review. 41. Provide electrical plan including load calculations and panel schedule for plan review 42. Schematic plumbing plans, electrical plan and load calculations, along with mechanical equipment and ducting plans shall be submitted for plan review stamped and original signed by an appropriate registered professional. 43. Obtain street addresses from the Building Official prior to submittal of plans for plan review. 44. Signage shall be posted conspicuously at the entrance to the project that indicates the hours of construction, shown below, as allowed by City of Temecula Ordinance No. 94- 21, specifically Section G (1) of Riverside county Ordinance No. 457.73, for any site within one -quarter mile of an occupied residence. Monday -Friday: 6:30 a.m. — 6:30 p.m. Saturday: 7:00 a.m.- 6:30 p.m. No work is permitted on Sunday or Government Holidays Prior to the Issuance of Occupancy Permits 45. All required landscape planting and irrigation shall have been installed consistent with the approved construction plans and shall be in a condition acceptable to the Director of Planning. The plants shall be healthy and free of weeds, disease, or pests. The irrigation system shall be properly constructed and in good working order. 46. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from final certificate of occupancy. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the applicant shall release the bond upon request. 47. If deemed necessary by the Director of Planning, the applicant shall provide additional landscaping to effectively screen various components of the project. 48. Front yard and slope landscaping, hardscaping and fencing within individual lots shall be completed for inspection prior to issuance of each occupancy permit (excluding model home complex structures). 49. The developer shall submit proof that all local refuse generators have been provided with written information about opportunities for recycling and waste reduction (i.e. buyback centers, curbside availability), subject to the approval of the Public Works and Community Services Departments. RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661.2, PA03-0725\Draft Resolution w CofA-4-21-04.doc 8 50. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. C ) By placing my signature below, I confirm that I have read, understand and accept all the above Conditions of Approval. I further understand that the property shall be maintained in conformance with these conditions of approval and that any changes I may wish to make to the project shall be subject to Planning Commission approval. Applicant's Signature Applicant's Name Printed Date RAProduct RevievARoripaugh Ranch SPZavidson Communities Tr 29661.2, PA03-0725\Draft Resolution w CofA-4.21-04.doc 9 ATTACHMENT NO.4 LETTER TO APPLICANT DATED JANUARY 21, 2004 R:\Product Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\STAFFREPORT-l.doe 10 O, TEillt , G OC 00 , og +'rTt03S•\ENV O v�`14 January 21, 2004 Ms. Paula Lombardi Davidson Communities 1302 Camino Del Mar Del Mar, CA 92014 City of Temecula 43200 Business Park Drive - PO Box 9033 - Temecula - California 92589-9033 - (909) 694-6400 - FAX (909) 694-6477 SUBJECT: Planning Application PA03-0725 for the product review of the new single-family homes proposed for the Roripaugh Ranch Specific Plan. Dear Paula: Staff has reviewed Planning Application PA03-0725 and has determined that the project cannot be approved as proposed. Below is a list of recommended and/or required changes to the above referenced project. General Comments Section 4.10.3.4 of the specific plan requires single story products as determined by the market or by staff. Staff has determined that a reasonable number of lots (no less than 20%) are required to be developed with a single story product. Please provide a single story product for staff's review. The comments below shall be incorporated into the single story product. 2. Per our conversation, each style is proposed to utilize a 20/30 sand float stucco finish with squared corners. Please provide a sample of this stucco finish. The sample provided appears to be a heavier aggregate. 3. Provide clear notes on the elevations indicating depth of recessed doors and windows, width and depth of borders, overhang length, type of materials, finish etc. Staff has found that a +/- system is a good method of showing how much a window, door, or plane is recessed or projected from the wall plane. 4. Staff has reviewed the plot plan and has determined that many of the setbacks have not been met. Lots 31, 50, 59, 81, and 100 do not meet the 10-foot exterior side yard setback. Lot 78 does not meet the 18-foot garage face setback. Lot 81 does not meet the 20-foot rear yard setback. Also, while the remainder of the lots appear to meet the setbacks, staff strongly recommends the front setbacks vary in order to provide interest from the street R:U'roduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\comment letterd.doc 1 scene. As proposed many lots utilize a 10-foot setback with little variation from lot to lot. Please revise where possible to provide interest. 5. Elements from the front elevation of each plan should be carried over to the sides and rear so the architectural style is clearly evident from all sides. This can be accomplished with varied roof pitches, additional exposed beams, variations in the window type such as arched windows, vertical or horizontal windows, chimney design, etc. The specific plan requires four sided architecture, which has been interpreted that the architectural style shall be clearly evident from each side of the residence. As proposed, the sides and rears offer little variation from each other. 6. Monterey and Spanish architecture utilize many of the same features, which creates difficulty when trying to distinguish the two styles from each other. Staff recommends either a fourth architectural style or choosing an alternative style, as approved by staff in order to clearly distinguish between the styles. If this recommendation is not taken, please note that in order to recommend approval, there must be clear differences in each style including materials, colors and overall design. 7. Staff has reviewed the color variations proposed and while Spanish and Monterey may have utilized similar color palettes historically, the specific plan requires that the colors vary for each style. The specific plan requires a minimum of four color variations for each style in each planning area (Section 4.10.3.1). Said color variations must not be the same as another style within the same planning area. 8. Staff recommends including additional materials into the products as necessary. Staff feels the use of brick on the Monterey style could help distinguish itself from Spanish. 9. All supplemental materials such as shingle siding, stone, brick etc. should wrap around the side elevations. Said materials should wrap to the side yard fence or to point it is no longer visible from the street. 10. The specific plan requires all corner lots to provide a second front elevation. As proposed, none of the corner lots provide a second front elevation as required. One option that could be considered is providing one or two plans designed specifically for corner lots. Another option is to provide a special side corner lot elevation for each plan. Staff has also accepted wrap around porches and low walls wrapping around the side to create a courtyard effect. It is important to note that fencing on the comer lots shall be pulled back to display the elevation as opposed to shielding it from the street. 11. Please provide staff with alternative types of front doors and garage doors related to the particular architectural style proposed. The specific plan encourages single or double doors, glass sidelights, surrounding frames, and molding around the door. The specific plan states "Emphasis should be placed on the design and type of entry door used. It functions as the major introduction to the interior of the house and concern should be given on the image it creates." 12. The City recommends that all accent relief elements installed below eight feet of ground level be constructed of dense, durable material (not softfoam) to assure longterm durability. Please indicate materials to be used on the elevations. RAProduct RevievARoripaugh Ranch SP,Davidson Communities Tr 29661-2, PA03-0725comment letter-Ldoc 2 13. Please revise summary table sheet for the project. The lot coverage shall be recalculated to show the footprint divided by the lot area. The architectural style should also be shown on the summary sheet. Also, please show the correct setbacks as required for the lots mentioned in comment No. 4 above as well as the adjusted front setbacks. 14. Please note that garages are required to be 20' by 20' measured from the interior wall or drywall and from the interior of the garage door to any barrier (stem wall or pole) greater than 8-inches in height. The floor plans should provide interior dimensions for the garage. While the floor plans indicate the garages measure 20' x 20', they do not measure 20' x 20'. Please revise the plans so all garages scale to the 20' x 20' interior dimensions. 15. Please keep in mind that the specific plan requires 50% of the residences to include architecture forward. Make sure that when the single story product is introduced into the plotting, no less than 50% of the lots shall maintain the architectural forward concept. 16. Please show the roof pitch on the plans. One way to differentiate between the styles is by varying the roof pitch and design. While there are slight differences in the roof design, staff feels the variations do not go far enough to clearly distinguish between the styles. Staff recommends a steeper roof pitch for East Coast Traditional. Spanish and Monterey typically have similar roof styles. Please see comment NO.6 above. If a different architectural style is not provided, it is your responsibility to provide creative differences between each plan. 17. As proposed, the plot plan shows lots 16, 31, and 60 with the side of the garage facing the street. Since all corner lots are required to maintain two front elevations, staff feels that these floor plans should be flipped in order to expose the more decorative side elevation. 18. Staff has reviewed the proposed decks and will not recommend approval as shown. Decks must appear as a structural component of the residence and be decorative. Please revise all decks for each plan. 19. Staff acknowledges that there are strict setbacks and small lots. In order to avoid setback problems, staff requires that you pre -plot all decks in order to determine what lots can accommodate a rear yard deck. 20. The specific plan requires ornamental features including decorative light features combined with other features to create visual interest in the front of the house with architectural compatible elements. Please provide spec sheets for the proposed lighting for each architectural style. Lighting should reflect the architecture of each unit. Please note that changes in lighting may be approved administratively by staff, if requested. 21. Please provide specification sheets for the proposed street light fixtures, street name signs and traffic signs. These will be used throughout the project; therefore, it needs to be requested by Ashby USA. 22. Please show an approximate location of the address for each unit and the method of posting and lighting the address. For example, will the addresses be backlit or be solid metal painted black. Please specify the type of addressing proposed for each typical residence. 23. Please plot the location and show a detail of the type of mailboxes proposed. This will also be used project wide and must be requested by Ashby USA and the U.S. Postmaster. RAProduct Review\Roripaugh Ranch SP\Davidson Communides Tr 29661-2, PA03-07251comment letter-l.doc 3 24. Please plot the location of all AC units on the plot plan. AC units shall be provided in the rear yard to allow clear access on the side yards. 25. Fencing should be revised to meet the specific plan standards. See section 2-15 of the specific plan for fencing standards. I order to maintain a consistent theme within the entire specific plan, walls and pilasters between residences are to be slump -stone (stucco walls and pilasters will not be accepted). Also, wrought iron view fencing shall be either dark green, aged copper or bronze. Staff will accept any color, however you must coordinate with the merchant builders and Ashby USA to determine what color will be utilized project wide. Ashby USA will be required to amend the specific plan so it applies project wide. 26. Chimney designs should be decorative and reflect each style. The same chimney design should not be used for two different architecture styles. 27. Elevations should provide a note indicting the room option for all dotted windows and/or doors. 28. Typical lighting for each architectural style should be provided. Lighting should be provided in the front entryway and/or at the garage entry. 29. Provide examples of door types to be offered. Doors should include glass and stress the importance as the focal point of the front elevation. Staff also recommends double doors, arched doors or other alternatives that will stress the entry as a focal point. 30. Provide a detail of each window border proposed for each architecture style. Where windows are not recessed, a border shall be provided 31. All front, rear and visible side windows (from the front and rear) should include decorative borders sills for windows nearest the front and rear elevation and on select side elevations to show importance. 32. Please provide a written analysis of each floor plan/architectural style indicating how the plan meets or establishes the necessary architectural theme. 33. Please revise the plot plan so all text is facing the same direction. As shown some of the language is upside down, which makes it difficult to review. Plan 1 34. Provide a separate side elevation for all corner lots (Apply to all necessary plans as plotted). 35. The sides and rear elevations are too similar. Please provide unique details for each style in order to satisfy the four sided architecture requirement. 36. The left elevation includes a long uninterrupted wall with no breaks. Please provide projections or breaks in the wall. 37. Windows should be either recessed, projected, include borders, shutters or alternative decorations to enhance each window. Also, in order to carry around the architecture to each side, arched or round windows, wrought iron details, etc. shall be provided as necessary (This applies to all plans). R9P`oduct Review\Rohpaugh Ranch UNDavidson Communities Tr 29661-2, PA03-0725tcommet letter-Ldoc 4 38. The location of the fence should be relocated on the exterior side yard elevation (all plans ^� plotted on corner lots). 39. Balconies should be functional where possible. Please consider expanding balconies where necessary to compliment the style. For example, Monterey styles typically include long covered balconies that run a significant length of the elevation. 40. Please provide unique details for each style. Windows, trim, doors, materials are all the same or too similar. Each style must provide unique details. Please provide a detail sheet showing typical details for each style, including doors, borders, sills, windows, lighting, garage doors, etc. (One sheet shall include details for each plan). Plan 2 41. The front elevations need to be enhanced with a covered entry or a porch. The entries do not show importance and shall be enhanced to show importance. 42. The left elevation includes a long uninterrupted wall with no breaks. Please provide projections or breaks in the wall. 43. Windows should be either recessed, projected, include borders, shutters or alternative decorations to enhance each window. 44. The sides and rear elevations are too similar. Please revise each provide unique details in order to satisfy the four sided architecture requirement. 45. While care must be taken not to make each plan too similar, the balconies should be addressed as noted in comment No. 38 above. Plan 3 46. The right elevation needs to be enhanced to avoid a long uninterrupted wall. As proposed, there is little interest along this wall. 47. The chimney design for each style must be different for each style. Please revise as necessary. 48. Side and rear elevations are all too similar, please ensure each plan elevation includes unique features of the style. Fence Comments: 49. Please remove all references to stucco walls and/or pilasters. While the specific plan indicates stucco may be used, there has been a consensus among builders to provide slump stone walls and pilasters. In order to maintain a consistent theme throughout the specific plan, the plans must be revised to show slump stone. 50. Please revise the fence plans to show a 6-foot slump stone project wall between units and to the point of the rear connection to the unit. The plans show a low stucco wall between units. RAProduct Review\Roripaugh Ranch MDavidson Communities Tr 29661-2, PA03-0725\comment letter-l.doc 5 51. Please revise the plans to show a 6-foot slump stone project wall for lots adjacent to paseos (lot 1). The plans show a low stucco wall for the length of the paseo. 52. Please revise the fence plans to include a pilaster at the front of the jog in the wall between units. Also, a break in the wall plane no less than 2 feet is required. 53. Please revise the view fencing to include the correct color of tubular steel. While the specific plan allows for dark green, aged copper or bronze, staff wants to ensure there is a consistent color used throughout the specific plan. Please contact Ashby USA and the merchant builders to determine the color to be used. 54. Please provide a note on the plans that all retaining walls will be constructed of slump stone to match the project walls. 55. Staff has made a determination that pilasters will not be required on interior lots. Since many of the lot lines do not align, pilaster will not be required for private fencing on the interior lots only. Pilasters are still required fort exterior side yards, exposed rear yards and view fencing. 56. Please pull the fencing back towards the rear of the lot of comer lots. As noted above, corner lots must include 2 front elevations and the fencing shall be pulled back to expose the architecture. 57. Staff feels that connection fence connection for plan 2 should be pulled back behind the entry (example Lot 20). This will open up the architecture and show the entry, which is required to be a focal point of the front elevation. Landscape Comments: Plans are too conceptual to provide an appropriate review. Multiple tree choices are provided for several plan symbols. There is no indication as to which symbol references each tree and the tree character may be one of several. Several symbols are used for all shrubs. The list of shrubs varies greatly in character. Please provide one symbol for each tree and one symbol for each type of shrub (i.e. large evergreen screen shrubs, small accent, color shrub, etc.). The comments below are provided for applicant direction. Final comments are reserved until a more complete plan is provided. 58. Per the specific plan, the minimum size tree is to be 24" box. Please revise accordingly. 59. Per the specific plan, one street tree along with one front yard tree shall be planted per lot. Please add trees as required and revise note accordingly. 60. Per the specific plan, ground cover shall be planted continuous under all shrubs and trees. Please provide ground covers as required. 61. Per the specific plan all shrub beds shall be covered with a 2" layer of 1 "-3" walk on bark. Please provide for this requirement. 62. Please clarify that all hardscape within the front yard is to be colored concrete, paving stones, flag stone or a combination of various textures, shapes and materials. RAProduct ReviewUtoripaugh Ranch SP1Davidwn Co=unitim Tr 29661-2, PA03-0725kom ent lever-l.doc 6 63. Side yards outside of the fence have the potential to be forgotten and neglected. Please provide drought tolerant, maintenance free plantings that will survive if irrigation is turned off and plantings are neglected. 64. Crape Myrtle is subject to powdery mildew in the Temecula area. Please specify mildew resistant varieties (i.e. Indian Tribe, Faurei). 65. Melaleuca quinquenervia, Tristania conferta, Metrosideros excelsus, and Bougainvillea are subject to freeze in the Temecula area. Please provide substitutes. 66. Please use Liriope in shaded areas only. It is subjectto burn in seasonal high temperatures in the Temecula area. 67. The applicant is to insure that mature plantings will not interfere with utilities and traffic sight lines. It is critical that you review the design guidelines in the specific plan before you revise the plans. The design guidelines includes language that requires window treatment, focal entries, unique details, windows, materials and features for each style, four-sided architecture, single story products, etc. If you have any questions regarding the specific plan and/or design guidelines, please feel free to contact me. Staff understands there are many comments to be addressed, however staff feels that the groundwork has been established for a viable project. If you have any questions regarding the above comments, please feel free to contact me at any time via email at dan.long@cityoftemecula.org or by phone at (909) 964-6400 extension 198. 1 look forward to working with you as this project progresses forward. Sincerely, Dan Long Associate Planner RtProduct ReviewToripaugh Ranch SPrDavidson Communities Tr 29661-2, PA03-0725Scom ent letter-Ldoc 7 0 ATTACHMENT NO.5 RESPONSE LETTER FROM APPLICANT DATED JANUARY 29, 2004 R:\Product Review\Rorlpaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\STAFF REPORT-1.doc 11 01/30/2004 11:58 FAX 8582594644 DAVIDSON 11001 e3az U,pm�o DII.x�.R DAVMSON DELMAI CAL7P0�3dV 51D14 case) ss,�asw rNc (mil rss+u4 COMMUNMFS January29,2004 Mr. Dan Long Associate Planner City of Temecula 43200 Business Park Drive Temecula, California 92589-9033 Subject: Planning Application PA03-0725 for the product review of the new single family homes proposed for the Roripaugh Ranch Specific Plan. Planning Area 2 Dear Mr. Long: Davidson Project Services, Inc. has reviewed your letter as received on January 215%, 2004 and subsequently met with you to further our understanding of each item. Our response is as follows: 1. As per our discussion at our meeting on January 2Vd, Davidson believes that the market is saturated with one-story homes. Of the 509 homes projected for the panhandle over 20% will be one story. We respectfully are proceeding with three two story bomes. 2, We will submit a "light to medium'' sand finish stucco sample as discussed. 3. Okay. 4. Resolved. 5. Okay. 6. Davidson will show clear difterences in each style including materials, colors, and overall design. 7. Okay, 8. Davidson is adding additional articulation of our existing material pallet. 9. Okay. 10. Davidson feels that all the articulation that has gone into the plans will avail any elevation to show well plotted on the comers. Further, the market wants privacy in their yards, particularly their courtyards where they can enjoy serenity at the end of a long day or play with the children on the weekend. 01/10/2004 11:58 FAX 8582594644 DAVIDSON _ 0002 We feel that we meet the requirements of the specific plan and meet the demands of the market. 11. Okay. 12. Okay. 13. Okay. 14. All garages measure at least 20 x 20 (interior dimensions). 15. 100% of our Architedwe is "Architecture Forward". One of our plans displays a deep-set garage with a Porte cachere. 16. Okay. 17, Okay 18. Okay 19. We will pre -plot all optional decks. 20. Okay 21. We have requested specification sheets for streetlights, street names and traffic signs from Ashby USA. 22, Okay 23. Davidson will plot the mailbox locations and have them approved by the U.S. postmaster. Further we will request the detail of the proposed mailbox design from Ashby USA. 24. Okay 25. Okay 26. Okay 27. Okay 28. Okay 29, Okay 30. We will provide on the 2 4 floor as we discussed at the meeting on the 22Id i 01/30/2004 11:59 FAX. 8582594644 DAVIDSON f�003 0 31. All windows, all four elevations have trim to match appropriate style. Accent trim was introduced where appropriate. 32, Okay 33. Our Engineer will do the best they can. Plan 1 1. Please see response number 10. 2. Okay 3. Okay 4. Okay 5. Please see response number 10. 6. We have a functional 8 x 6 balcony over the garage. 7. Okay Plan 2 1. Per our meeting we pointed out that this plan has a covered porch. 2. Okay 3. Okay 4. Okay 5. The optional deck is at the rear of this plan; the Romeo & Juliet balcony's purely an aesthetic feature. Plan 3 1. Okay 2. Okay 3. The roof was completely redesigned. 01/R0/2004 11:59 FA% 8582594644 DAVIDSON 1@004 Fence Comments: 1 _ Okay 2. Okay I Okay 4. Okay 5. Okay 6. Okay 7. Okay S. Please refer to item 10. 9, Please refer to item 10 Landscape Comments: First Paragraph: Okay 1. As per our discussion at our meeting, Davidson meets and exceeds the requirements. 2. As per our discussion at our meeting, Davidson meets and exceeds the requirements. All remaining items: Okay Our consultants are in the process of complying with staff s comments as noted in this correspondence. The addressed comments will be in your office on February 6" for your review. As you know, our concern is to get the project agprovcd. We would very much appreciate being calendared for the February 18 Planning Commission Hearing - Certainly anything Staff can do would be most appreciated. Sincerely, DAVIDSON COMMUNITIES LETTER DATED MAY 11, 2004 RAProduct RevieMRoripaugh Ranch SP\Davidson Communities Tr 29661.2, PA03-0725\pc sr memo 5-19-04.doc 6 RECEIVED= b/ll/uv a:vvrmi -�i.r. yr �..�....� , -• •-- 05/11/2004 15:28 8582594644 DAVIDSON COMMUNITIES PAGE 02/03 DAVIDSON COMMUNITIES 1�1 May 11, 2004 1302 CAM" DEL MAR DEL MAIL CALIFORNIA 52014 (W) Z54-9500 PAX (!50) ZSP w w Axvid%m Do uNEH.tom Mr. Dan Long City of Temecula 43200 Business Park Drive Temecula, California 92589-9033. Re: Planning Application PA03-0725, Planning Area 2 Dear Mr. Long: Davidson Project Services has taken into consideration the recommendations the Planning Commission suggested at the April 21" hearing. The following suggestions were made: 1. The site plan plotting was changed on the homes backing onto Murietta Hot Springs Road. Lot 68 became a 1.A, Lot 60 a 3B, 3 Lot 73 a 1CR, and Lot 74 a 3B. This rear street scene massing study is shown in the submittal package. 2. The Monterey style homes now have "low profile" roof tile in a lighter color tone, while the Spanish style has the "S" roof tile in a darker. color tone. 3. We have enhanced all the comer elevations where the Plan 3 occurs on lots 16, 100, 60, 41, and 82 with trim. 4. We have enhanced all the comer elevations where the Plan 1 occurs on lots 32, 81, 50, and 59. Added window towards front at office as well as trim. 5. We have enhanced the corner elevation on lot 31 where the 2 plan occurs. Added window at 2nd floor/master bedroom as well as trim. 6. The site plan, the matrix, the color schemes, as well as the landscape plan have been changed to correlate with all the plotting and roof color changes. 7. The garage door styles were changed; the East Coast Traditional now has a standard garage door with windows. Two optional upgrades are also shown in the submittal package. One, a barn style with windows; another without. 8. The entry door styles were changed, the Spanish Revival now has two glass panes at the top, and the others are solid. Three optional upgrades are also shown in the submittal package. 9. The plotting exhibit now illustrates the lower roof by the color cross- hatching. RECEIVED: 5/11 /04 2:40PM; ->C11 ♦ Vr Ieme•.V �r�i "�' • ^`� 05/11/2004 15:28 8582594644 DAVIDSON COMMUNITIES PAGE 03/03 10. The full -page roof plans also in the submittal package now illustrates the lower roof by shading. This summarizes our endeavor to fulfill the recommendations of the planning Commission. We are hopeful for an approval at the next hearing on May 19, 2004. Sincerely, Davidson Roripaugh Ranch 122 LLC a California limited liability company By: Davidson Project Services, Inc. a California corporation Manager Paula Lombardi Vice President ATTACHMENT NO.4 EXCERPTS RORIPAUGH RANCH DESIGN GUIDELINES RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Staff Report-1.doc 6 DESIGN GUIDELINES 4.10.3.4 Streetscene: Design Variation Requirements and Front Yard Landscaping • The front setbacks of both the garage and living space of adjacent buildings shall vary to provide visual interest along street scene. See Figures 4-69A through 4-69D. Please refer to Section 5.0, Specific Plan Zoning Ordinance, Table 5-2 for site specific development standards. • Provide visual interest along the street scene, a variety of front entry and side entry garages with varying setbacks shall be utilized. The maximum driveway width at the right-of-way shall be twenty-four (24) feet. Adequate driveway width shall be used onsite to allow for cars to back out of a third -car garage. In no case shall there be an alignment of three garage openings either paired or single doors. • Where possible and appropriate, variable lot sizes may be used to increase selection and variety in house and lot size configurations. • Neighborhoods shall be laid out in a manner which provide connections into the trail and paseo system as illustrated in Figures 4-12, 4-13, 4-37 and 4-38. • The requirement for one-story products shall be determined by the market or as determined by staff as long as some single story products are required in the single family detached areas. • Front Yard Landscape and Hardscape: o Within Planning Areas 12, 14, 15, 22 and 31, all lots shall have builder install, HOA maintained front yard landscaping. o Within Planning Areas 1A, 2, 3, 4A, 48, 16, 17, 18, 23, and 24 all lots shall have builder install, homeowner maintained front yard landscaping. o Within Planning Areas 10, 19, 20, 21, and 33A all lots shall have builder /homeowner installed, homeowner maintained front yard landscaping. o The following shall apply to all Planning Areas • Front yard landscape shall be a minimum of 50% to 75% lawn with the remaining area devoted to shrubs and ground cover. • No colored rock, gravel or cobblestone shall be used for ground cover. Salt and pepper type granite boulders two to three feet in diameter and thickness may be used as long as they are placed within the landscape in a natural arrangement and accent the overall landscape theme. No more than two to three boulders will be allowed per lot. • Shrub sizes shall be 50% 1-gallon and 50% 5-gallon. Quantity shall be one 5-gallon per every 50 square feet and one 1-gallon per every 25 square feet of shrub bed area. Shrubs shall be planted to create a unified design theme and at the base of houses to soften the mass of the structure. • Ground cover shall be rooted, spaced at a minimum of 8 inches on center and a maximum of 18" on center subject to the approval of the City's Landscaped Architect as required by species spacing requirements within the shrub bed area. Ground cover shall be continuous under all shrubs and Roripauoh Ranch Specific Plan 4-121 N:\31367-000\dod\SPSect44CCAdopted.dm March, 2003 FIGURE 4-70 MIX71l�Ea� �I-Fs - I Ir�� AN G W-P�rl i�T1G V-Y yTiYf cc J-4 a4y U� (D O�W OR Q47 b C� co O I c: 01 4-- O X .E Q ca 4- 0 0 Of a) �L \cu The Keith Companiesl7KC .y�7 N T T 0 5 C A L E Ron E llFl■aug1l L J Ranch � -� DESIGN GUIDELINES 4.10.3.5 Building Elevations A key technique for creating a sense of variety within a project is to vary the heights and forms of the detached homes as seen from the street as illustrated in Figure 4-70 by utilizing the following: • Within Low and Low Medium density Planning Areas, utilize both one- and two-story buildings. • To improve the visual relationship between adjacent buildings, it is desirable to introduce intermediate transition between them. Use a one-story architectural element within the two- story building to lessen its apparent height. • Create varying rooflines by maximizing offsets of roof planes. • Units located at street corners (see Figure 4-70), should be either single -story or have a significant one-story mass located towards the exterior side yard. Treatment of Mass • Avoid a canyon -like effect between buildings and allow greater light penetration into what otherwise might be dark side -yards. At interior side yards, it is required to create the appearance of increased building separation by stepping the second story mass away from the property line or any other substantial articulation. • Provide trims around windows, to break up the wall plane. • Avoid long uninterrupted exterior walls. • Vary the depth of plans to create variations in the building fagade. • Two story homes shall be modified to be compatible with placement on corner lots. The modification shall create two front elevations. • Surface detail, ornament and architectural elements such as cornices, color contrast, gables applied moldings, arcades, colonnades, stairways and light fixtures that provide visual interest, shadow, and contrast shall be used to enrich architectural character. Details shall be integrated with the overall design concept. • Vary the height and roof levels of the building or residence so that it appears to be divided into smaller massing elements. Architectural projections shall be used to achieve this goal. • Articulate building forms and elevations with varying rooflines, roof overhangs and intermediate roof elements to create strong patterns of shade and shadow. Interlocking Mass • Just as stepping the second story mass improves the side yard, it can be used to improve the front yard scene. As an example, the second story should be set back in relationship to the garage face or living space below it. • The designer should envision the building form as a series of interlocking masses rather than a rectangular or "L" shaped box. Therefore achieving a more aesthetic design solution. Roripaugh Ranch Specific Plan 4-124 N:\31367.000\dod\SPSect44CCAdopted.doc March, 2003 DESIGN GUIDELINES Articulation of Side and Rear Elevations There is a tendency to have "build out" planes maximized on side and rear yards without articulated treatment of those planes. This results in a two-story stucco effect with no vertical or horizontal relief. Utilize the following techniques or other acceptable techniques to avoid this effect: • Create a single -story plane at the rear by recessing the second story. • Utilize other similar architectural treatments and designs such as balconies or pop out staircases to encourage relief on potential large architectural planes. • Side and rear elevations shall have articulation with modulated facades, window treatment, second story projections and balconies. • Articulation shall be provided on all sides of the homes ("Four-sided Architecture"). Front Elevations • Architectural projections shall be utilized to emphasize entrances, balconies, and porches. Fronts of houses shall utilize several architectural features. Ground floor windows shall have significant trim or relief, second floor overhangs or built in planters. Second story windows shall have similar treatment to emphasize them. • All residences shall incorporate entry courtyards, covered entries or covered porches at the entry into the design. (See Figure 4-71 and 4-72). • Details shall be concentrated around entrances. Materials used for the front entry shall be distinctive. • Building elements that reflect the architectural style should be incorporated into building entries, windows, front porches, and living areas directly adjacent to the street. • Ornamental features including wrought iron and exterior light features shall be combined with other features to create interest in the front of the house with architecturally compatible elements. Rorioauah Ranch Specific Plan 4-125 N:\31367.000\dod\SPSect44CCAdopted.dcc March. 2003 DESIGN GUIDELINES 4.10.3.6 Architectural Elements A successful project design achieves a proper visual balance and sense of cohesiveness. The differences between the plans and elevation must be readily discernable and create variety, yet at the same time elements, styles and materials should not contrast to such an extent as to result in visual chaos. Architectural elements will play a significant role in the establishment of the architectural style. These elements include architectural detailing, colors and materials, and other site structures. The required Architectural and design elements techniques are as follows: Unit Entries (See Figures 4-71 and 4-72) The entry serves several important architectural and psychological functions: it identifies and frames the front doorway; it acts as an interface between the public and private spaces; and it acts as an introduction to the structure while creating an initial impression. • The entry shall be designed and located so as to readily emphasize its prime functions. Accent materials are encouraged to be used to further emphasize the entries. • If the front door location is not obvious or visible because of building configuration, the entry shall direct and draw the observer in the desired path. The design of the entry area in merchant -built housing shall be strong enough to mitigate the impact of the garage on the facade. • Entry doors and doorways shall be proportional to the architectural style of the structure. • Covered entries, courtyards and porches shall be provided as entry elements. Doors Emphasis shall be placed on the design and type of entry door used. It functions as the major introduction to the interior of the house and concern should be given on the image it creates. • Either single or double doors are appropriate. • The door shall be covered by an overhead element or recessed a minimum of 3 ft into the wall plane. • The entire door assembly shall be treated as a single design element including surrounding frame, molding and glass sidelights. • Recessed doors may be used to convey the appearance of thick exterior doors. • Wood may be used for the entry door. Wood grain texture and raised or recessed panels contribute to the appeal of the door. Greater use is being made of metal entry doors but in order to be acceptable, they shall possess the same residential "feel" provided by the wood grain and panels. • Doorways shall be typically rectangular or round -headed and fully recessed. Spiral columns, arches, pilaster, stonework, decorative tiles, or other sculptural details shall be integrated into the doorway design to enhance the visual importance of the entry door. Ronpaugh Ranch Specific Plan 4-127 N:\31367.000\dod\SPSect44CCAdopted.dm March, 2003 DESIGN GUIDELINES • The use of glass in the door and overall assembly is encouraged. It expresses a sense of welcome and human scale. It can be incorporated into the door panels or expressed as single sidelights, double sidelights, transom glass or fan windows. • Flexibility is allowed concerning the color of the door. It may match or contrast the accent trim, but should be differentiated from the wall color. Windows • Typically, the location of windows is determined by the practical consideration of room layout, possible furniture placement, view opportunities and concern for privacy. Greater design emphasis should be directed to ensure that window placement and organization will positively contribute to the exterior architectural character. Windows greatly enhance the elevation through their vertical or horizontal grouping and coordination with other design elements. This relationship to one another and the wall/roof plane creates a composition and sense of order. • All windows in a specific plan elevation shall be integrated into the architecture of the building. This should not be interpreted that they are all the same shape, size or type but rather that a hierarchy of windows exists that visually relates and complements one window to another. a • Windows shall be recessed to convey the appearance of thick exterior walls. Non -recessed windows shall be surrounded with articulated architectural elements such as wood trim, stucco surrounds, shutters or recessed openings, shutters, pot shelves, ledges, sills plantons, and rails that compliment the architecture. • Merchant -built housing occasionally fails to adequately address proper window design and placement on rear and side elevations. This is usually due to prioritization, maintenance and cost factors. Since side elevations and second story rear windows are frequently visible, greater design effort and budget prioritization need to be given. Garage Doors (See Figure 4-73) • Utilizing garage types that compliment the architecture, door designs, and plotting techniques will do much to lessen the repetitious garage doors marching down both sides of a residential street. Variations include: o Employment of second -story feature windows above the garage. o Strong architectural entry elements. o Designs with a mix of 2 and 3 car garages, incorporating three single doors in some three car garage plans not facing the street. o Allowance for a 10-foot setback between adjacent garages. o The use of tandem garages may also be incorporated into the building design. o Garage plans with a double door and a single door plan shall not be placed next to each other. • If applicable, where lot width permits plans should include swing -in or side entry garages with reduced front yard setbacks of ten (10) feet. Roripaugh Ranch Soecific Plan 4-128 N:\31367.000\dod\SPSect44CCAdopted.doc March, 2003 DESIGN GUIDELINES • The design of the garage door shall relate to the overall architectural design of the residence. Colors shall be from the same paint palette. • Ornamentation of garage doors shall be provided to add visual interest from the street scene. • The use of the sectional, wood or metal, rolling garage door is required since it maximizes the availability of useable driveway length. • Several different panel designs shall be utilized for any project proposed by each merchant builder. Metal doors shall only be used when they include either texture or raised panels of a "residential" nature. The use of window elements is encouraged. • The design of the door face shall result in a treatment which breaks up the expanse of the door plane while being complimentary to the architectural elevation of the residence. Architectural detail consisting of cornices, applied molding or trim or applied headers shall be used. There shall be an 8" recess. (See Exhibit 4-73). Roripaugh Ranch Specific Plan 4-129 N:G31367.000\dod\SPSmt44CCAdopted.dcc March, 2003 ATTACHMENT NO. 5 EXHIBITS RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Staff Report-1.doc 7 � � i ': ^l �'� 1 (( �� iie�r fi �i -� h F r �I iL'f �Iii18 Icy - ` «� 'mi t ., I _._.. i 'C� � �^ �11 fi ___ NIMIL \ILIM _ AIL IL u 'Y \ I C A S E M—r�.il RORIPAUGH RANCH SPANISH REVIVAL ELEVATION DAVIDSON COMMUNITIES PLAN I `n R o u v ANCH C A 5 E EAST COAST TRADITIONAL ELEVATION ►�u' PLAN I 4 R O 1) P 4 -... «„ C A S E I P A U G H RANCH MONTEREY ELEVATION ►� 3ON COMMUNITIES PLAN I c, c o u v n„t„„„ . _} �f /: . \ � §� � � &» �� �\I / £\ Q � � / \.� \I H RANCH C A 5 E SPANISH REVIVAL ELEVATION ({ PLAN 2 GIn" RORIPAUG C A 5 E EAST COAST TRADITIONAL ELEVATION (`y' PLAN 2 G R o u Y A ,r hum C A S E pl� MOI TtEREY ELEVATION PLAN 2. uaour Au/u my C A $ E // R O R I P A U G H RANCH SPANISH REVIVAL ELEVATION 11`' DAVIDSON COMMUNITIFS PLAN-3 c z o u r Anlio-rrr IN C A S E EAST COAST TRADITIONAL ELEVATION ►y' PLAN 3 G R O U P Anhv.n C A S E R O R I P A U G H RANCH MONTEREY ELEVATION ►`- j DAVIDSON COMMUNITIES PLAN 3 GROUP , n«„ ATTACHMENT NO. 5 EMAIL CORRESPONDANCE FROM APPLICANT RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Staff Report-t.doc 8 Page 1 of 1 Dan Long From: Paula Lombardi [plombardi@davidsoncommunities.com] Sent: Thursday, July 29, 2004 5:32 PM To: Dan Long Dan, The following summarizes the results of our meeting with Debbie Ubnoske yesterday: Condition 11. Stucco Finish will be 16/20 on the East Coast style; 20/30 float on both Monterey and Spanish Revival styles. Condition 12. To add to the focal points of the Spanish Revival and Monterey: 1. The Monterey - Plan two, rear, eliminate eyebrow plant-ons above upper windows, add iron. 2. Spanish Revival - Plan three, rear, add an arch effect to the small, upper window, keep iron. Condition 14. The Spanish Revival roofs shall be 2 piece "S" Tile with 2 color variations, some boosting is required. Conditions 16 & 17 Tile will be used as an architectural element on the front elevation of the Monterey Style to differentiate from the Spanish Revival. Condition 18. Davidson now agrees and is okay with this condition. (interior wood fence) Condition 20. Will remain on the Notice of Appeal which is scheduled to be heard by City Council on August 10, 2004. (Eliminate bedroom on 2nd floor) Condition 30. Will be further clarified by Dan Long, and as such, referring to front yards only, Davidson will agree with the condition. (reference: bond for private common area landscape) I am hereby requesting the appeal to be withdrawn with the exception of the second floor issue on Plan 2 (Condition 20). Thank you. Paula Lombardi Vice President Davidson Communities 1302 Camino Del Mar Del Mar, CA 92014 Tele: (858) 259-8500 Fax: (858) 259-4644 plombardi@davidsoncommunities.com This Email has been scanned for all viruses by PAETEC Email Scanning Services, utilizing MessageLabs proprietary SkyScan infrastructure. For more information on a proactive anti -virus service working around the clock, around the globe, visit http://www.paetec.com. 09/02/2004 RESOLUTION NO.2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA UPHOLDING THE PLANNING COMMISSION APPROVAL FOR A PRODUCT REVIEW FOR 99 DETACHED SINGLE FAMILY RESIDENCES WITHIN PLANNING AREA 2 OF THE RORIPAUGH RANCH SPECIFIC PLAN LOCATED SOUTH OF MURRIETA HOT SPRINGS AND WEST OF THE FUTURE EXTENSION OF BUTTERFIELD STAGE ROAD AND KNOWN AS TRACT MAP 29661-2 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, Davidson Communities, filed Planning Application No.PA03-0725, Residential Product Review in accordance with the City of Temecula General Plan and Development Code; WHEREAS, the application for the Project was processed and an environmental review was conducted as required by the California Environmental Quality Act; WHEREAS, the Planning Commission of the City of Temecula held duly noticed public hearings on April 21, 2004 and May 19, 2004 to consider the application for the Project; WHEREAS, following consideration of the entire record of information received at the public hearing and due consideration of the proposed project, the Planning Commission adopted Resolution No. 2004-022, approving Planning Application No. 03- 0725 subject to the conditions of approval; WHEREAS, Davidson Communities, filed an appeal of Condition of Approval No. 20 for Planning Application No. PA03-0725, a Product Review for 99 detached single family residences in Planning Area 2 of the Roripaugh Ranch Specific Plan; WHEREAS, the City Council received a copy of the Planning Commission proceedings as Staff Report regarding Planning Application No. PA03-0725; WHEREAS, the City Council conducted a public hearing pertaining to Planning Application No. PA03-0725 (Product Review — Appeal) on August 10, 2004, at which time interested persons has opportunity to testify either in support or in opposition to Planning Application PA03-0725; WHEREAS, on August 10, 2004, the City Council of the City of Temecula upheld the approval of the Planning Commission when it adopted Resolution No. 04-_ RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso DraR.doc 1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Findings, The City Council of the City of Temecula hereby makes the following findings: 1. The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the city. The proposed single-family homes are permitted in the Low Medium Density land use designation standards contained in the Roripaugh Ranch Specific Plan and the City's Development Code. The site is properly planned and zoned, and as conditioned, is physically suitable for the type and density of the residential development proposed. The project, as conditioned, is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the City Wide Design Guidelines, and fire and building codes. 2. The overall development of the land is designed for the protection of the public health, safety, and general welfare. The overall design of the single-family homes, including the site, building, parking, architecture, massing and other associated improvements are consistent with, and intended to protect the health and safety of those working in and around the site. The project has been reviewed for, and as conditioned, has been found to be consistent with all applicable policies, guidelines, standards and regulations intended to ensure that the development will be constructed and function in a manner consistent with the public health, safety and welfare. Section 2. Environmental Compliance. The project is a Product Review for 99 detached single family residences. A Notice of Exemption for Planning Application No. PA03-0725 was made per the California Environmental Quality Act Guidelines Section 15162. An EIR has been adopted and certified for the project site. The project use and density is consistent with the adopted EIR. Section 3. Conditions. That the City Council of the City of Temecula hereby upholds the decision of Planning Commission and approves Planning Application No. PA03-0725 (Product Review) based upon the analysis and findings contained in the Staff Report subject to the Conditions of Approval attached to this Resolution as Exhibit A. Section 4. The City Clerk shall certify the adoption of this Resolution PASSED, APPROVED AND ADOPTED this 10th day of August, 2004 Mike Naggar, Mayor ATTEST: RAProduct RevieMRoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso Draft.doc 2 Susan W. Jones, CMC 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 adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 10th day of August, 2004, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk RAProduct Revievr\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso Draft.doc 3 EXHIBIT A CONDITIONS OF APPROVAL RAProduct RevievARoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso Draft.doc 4 EXHIBIT A CITY OF TEMECULA DRAFT CONDITIONS OF APPROVAL Planning Application No. PA03-0725 Project Description: A Product Review for 99 detached single family residences within Planning Area 2 of the Roripaugh Ranch Specific Plan located south of Murrieta Hot Springs Road and west of the future extension of Butterfield Stage Road, Tract Map 29661-2. Tentative Tract No. DIF Category: Approval Date: Expiration Date: PLANNING DEPARTMENT 29661-2 Per Development Agreement August 10, 2004 August 10, 2006 Within Forty -Eight (48) Hours of the Approval of this Project The applicant shall deliver to the Planning Department a cashier's check or money order made payable to the County Clerk in the amount of Sixty -Four Dollars ($64.00) for the County administrative fee, to enable the City to file the Notice of Exemption as provided under Public Resources Code Section 21108(b) and California Code of Regulations Section 15062. If within said forty-eight (48) hour period the applicant has not delivered to the Planning Department the check as required above, the approval for the project granted shall be void by reason of failure of condition (Fish and Game Code Section 711.4(c). General Requirements 2. The permittee/applicant shall indemnify, protect and hold harmless, the City and any agency or instrumentality thereof, and/or any of its officers, employees, and agents from any and all claims, actions, or proceedings against the City, or any agency or instrumentality thereof, or any of its officers, employees, and agents, to attack, set aside, void, annul, or seek monetary damages resulting from an approval of the City, or any agency or instrumentality thereof, advisory agency, appeal board or legislative body including actions approved by the voters of the City, concerning the Planning Application which action is brought within the appropriate statute of limitations period and Public Resources Code, Division 13, Chapter 4 (Section 21000 et seq., including but not by the way of limitations Section 21152 and 21167). The City shall promptly notify the permittee/applicant of any claim, action, or proceeding brought forth within this time period. The City RAProduct RevieMRoripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso Draft.doc 5 shall estimate the cost of the defense of the action and applicant shall deposit said amount with the City. City may require additional deposits to coveranticipated costs. City shall refund, without interest, any unused portions of the deposit once the litigation is finally concluded. Should the City fail to either promptly notify or cooperate fully, permittee/applicant shall not, thereafter be responsible to indemnify, defend, protect, or hold harmless the City, any agency or instrumentality thereof, or any of its officers, employees, or agents. Should the applicant fail to timely post the required deposit, the Director may terminate the land use approval without further notice to the applicant. 3. This approval shall be used within two (2) years of the approval date; otherwise, it shall become null and void. By use is meant the beginning of substantial construction contemplated by this approval within the two (2) year period which is thereafter diligently pursued to completion or the beginning of substantial utilization contemplated by this approval. 4. Building elevations shall substantially conform to the approved Exhibits, including elevations, floor plans, landscaping plans, hardscape plans, and plotting plan, contained on file with the Planning Department or as amended by these Conditions of Approval. 5. The colors and materials for this project shall substantially conform to the approved colors and materials contained on file with the Planning Department. Any deviation from the approved colors and materials shall require approval of the Director of Planning. 6. This approval is for product review only and shall in no way limit the city or other regulatory or service agencies from applying additional requirements and/or conditions consistent with applicable policies and standards upon the review of grading, building and other necessary permits and approvals for the project. 7. The Development Code requires double garages to maintain a minimum clear interior dimension of 20' x 20'. This shall be clearly indicated on the plans prior to the issuance of building permits for the project. Interior dimensions are measured from the inside of garage wall to the opposite wall, steps, landing, equipment pedestals, bollards or any similar type feature. When the top of the stem wall is more than 8" above the garage floor, the required dimension is measured from the inside edge of the stem wall. 8. Applicant shall obtain the proper permits before construction, including Encroachment Permit from the Public Works Department for any work done in the City right-of-way, and Building Permit from the Building and Safety Department. 9. Fire Hydrants shall be installed prior to the start of any construction at the site. 10. Driveway widths shall comply with the driveway width requirements per City Standards. In order to allow for adequate street parking, the driveway widths at curbs will be limited to 24' maximum. R1Product Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso Draft.doc 6 if. All Spanish Revival and Monterey styles shall utilize a smooth to light texture stucco finish (20/30 aggregate or smoother) as determined acceptable by the Planning Director. East Coast Traditional styles shall utilize a light -medium (16/20 aggregate) finish. 12. Monterey and Spanish Revival styles shall include arched focal points. Each focal point shall be unique for the appropriate style. Focal points may include arched doors, windows, or other forms as determined acceptable by the Planning Director. 13. All Monterey styles shall utilize a Spanish style tile roof. 14. All Spanish Revival styles shall include a Barrel tile clay roof. 15. One style of each plan shall provide a roof plan that is clearly different than the other styles in order to provide variation along the front and rear street scene. 16. The Spanish Revival and/or Monterey shall include an additional material(s) such as brick or stone to differentiate between the styles 17. All materials such as stone, brick and siding shall wrap around the side yard to the fence return or as determined acceptable by the Planning Director. 18. Fencing between units (on interior side yards and rear yards, but excluding view fencing) where not visible from the street shall be wood fence as shown in figure 2-15 (privacy fencing) or as approved by the Planning Director. 19. Fencing along lot 1, adjacent to the paseo trail shall include a low slumpstone wall for the first 20 feet and transition into a 6-foot project wall as shown in figure 4-38 (Paseo entry). 20. Plan 2 shall be modified to eliminate the second story over the front portion of the product in order to reduce the massing along the street scene, subject to the approval of the Planning Director. Prior to the Issuance of Grading Permits 21. The applicant shall submit a Grading Plan, subject to the review and approval of the Planning Department. 22. The applicant shall sign both copies of the final conditions of approval that will be provided by the Planning Department staff, and return one signed set to the Planning Department for their files. 23. The applicant shall submit to the Planning Department for permanent filing two (2) 8 X 10" glossy photographic color prints of the Color and Materials Boards and of the colored version of the approved colored architectural elevations to the Planning Department for their files. All labels on the Color and Materials Board and Elevations shall be readable on the photographic prints. RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso Draft.doc 7 24. A street tree master plan indicating what tree species will be planted on each street shall be submitted. The plan should graphically show the locations of all trees. One tree species per street shall be provided. Prior to the Issuance of Building Permits 25. The applicant shall comply with standards conditions and requirements set forth in the Roripaugh Ranch Specific Plan, Mitigation Monitoring Program, conditions of approval for Tract Map 29353 (PA01-0230, A -Map), Tract Map 29661(PA01- 0253, B-Map), and Ordinance No. 02-14, the Development Agreement between the City of Temecula and Ashby USA, LLC for the Roripaugh Ranch Specific Plan, including, but not limited to attachment "5", which requires various on and off -site improvements. 26. The applicant shall submit street lighting and signage plans to the Planning Director for final approval. Street lighting shall comply with the Specific Plan, Riverside County Mt. Palomar Lighting Ordinance, and the mitigation -monitoring program. Said lighting shall comply with the standards as set forth in the Mitigated Monitoring Program and install hoods or shields to prevent either spillage of lumens or reflections into the sky (lights must be downward facing). 27. The applicant shall submit mailbox elevations and a plot plan clearly indicating the location of each mailbox area. Mailbox type and location shall be subject to the approval of the Postmaster and Planning Director. 28. Prior to issuance of any residential building permit within Planning Area 2, the construction landscape and architectural plans for Paseos (including hardscaping, landscaping, fencing, lights and gates), Paseo gates Staff Gated Primary Entry, Card Key Entry, fuel modification zones shall be submitted and approved 29. Prior to construction of the Model Home complex, the applicant shall apply for a Model Home complex permit. 30. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings within private common areas for a period of one year, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from the completion of the landscaping. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the bond shall be released. 31. Precise Grading Plans consistent with the approved rough grading plans, plotting plan, structural setback measurements shall be submitted and approved. 32. The developer shall demonstrate to the Planning Director that all homes will have double paned windows with at least a 25 STC rating installed to reduce noise from occasional aircraft over flights. 33. The developer shall provide proof that construction debris, including but not limited to lumber, asphalt, concrete, sand, paper and metal is recycled through RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso Draft.doc 8 the City's solid waste hauler, subject to the approval of the Community Services Department. 34. All design components shall comply with applicable provisions of the 1998 edition of the California Building, Plumbing, Mechanical and Fire Codes; 1998 National Electrical Code; California Administrative Code, Title 24 Energy and Disabled Access Regulations and the Temecula Municipal Code. 35. Obtain all building plans and permit approvals prior to commencement of any construction work. 36. A pre -construction meeting is required with the building inspector prior to commencement of any construction or inspections. 37. Provide appropriate stamp of a registered professional with original signature on plans and structural calculations submitted for plan review. 38. Provide electrical plan including load calculations and panel schedule for plan review. 39. Schematic plumbing plans, electrical plan and load calculations, along with mechanical equipment and ducting plans shall be submitted for plan review stamped and original signed by an appropriate registered professional. 40. Obtain street addresses from the Building Official prior to submittal of plans for plan review. 41. Signage shall be posted conspicuously at the entrance to the project that indicates the hours of construction, shown below, as allowed by City of Temecula Ordinance No. 94-21, specifically Section G (1) of Riverside county Ordinance No. 457.73, for any site within one -quarter mile of an occupied residence. Monday -Friday: 6:30 a.m. — 6:30 p.m. Saturday: 7:00 a.m. — 6:30 p.m. No work is permitted on Sunday or Government Holidays Prior to the Issuance of Occupancy Permits 42. All required landscape planting and irrigation shall have been installed consistent with the approved construction plans and shall be in a condition acceptable to the Director of Planning. The plants shall be healthy and free of weeds, disease, or pests. The irrigation system shall be properly constructed and in good working order. 43. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings, in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for one year from final certificate of occupancy. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the applicant shall release the bond upon request. RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso Draft.doc 9 44. If deemed necessary by the Director of Planning, the applicant shall provide additional landscaping to effectively screen various components of the project. 45. Front yard and slope landscaping, hardscaping and fencing within individual lots shall be completed for inspection prior to issuance of each occupancy permit (excluding model home complex structures). 46. The developer shall submit proof that all local refuse generators have been provided with written information about opportunities for recycling and waste reduction (i.e. buyback centers, curbside availability), subject to the approval of the Public Works and Community Services Departments. 47. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. By placing my signature below, I confirm that I have read, understand and accept all the above Conditions of Approval. I further understand that the property shall be maintained in conformance with these conditions of approval and that any changes I may wish to make to the project shall be subject to Planning Commission approval. Applicant's Signature Applicant's Printed Name Date RAProduct Review\Roripaugh Ranch SP\Davidson Communities Tr 29661-2, PA03-0725\CC Reso Draft.doc 10 Davidson Communities Roripaugh Ranch --.._11-1. PLAN I SPANISH REVIVAL op +.a a a w 1-7 PLAN 2 MONTEREY PLAN 3 EAST COAST TRADITIONAL C A S E 1 R O R I P A U G H RANCH FRONT STREET SCENE DAVIDSON COMMUNITIES G R O U P Architects PLAN 3 EAST COAST TRADITIONAL PLAN 2 MONTEREY PLAN I SPANISH REVIVAL C A S E R O R I P A U G H RANCH REAR STREET SCENE I� DAVIDSON COMMUNITIES G R O U P Arcbitects m Mm ago �'.11• nr=4[I 1� Wmlu Mllimllaw ��� ■WMM I�u m �.0 mi. =o.� mllm�,m all '=no.� O• �� 6ll I I� u i I FEW I l u FLIII n 11 I 1 r i �— e, ` M ROOF PLAN 2A- SPANISH REVIVAL ROOF PLAN 2& EAST COAST ROOF PLAN 2C- MONTEREY C A, S E e RORIPAUGH RANCH 3'32,"=I DAVIDSON COMMUNITIES PLAN 2 RrG R cbii P teczs Ft7 goo. I � ��� � I � I � L7� 3C� 2B.;7, ;fi 2rit2 IB 3C{� 2t3 ICE ,RORIPAUGH RANCH 05, VIDSON COMMUNITIES BRUSH CREEK FRONT STREET SCENE 3B C A S c Cod; CLE 1u1 JDY GROUP A bit:,.. �_ i ♦� Mwa I am IN ■rl IIIIIIIII� IIIIII����WINro E .., .. •" fly € i�� —� ,1 I- � e II1L"���li ,�,�� ISO •loul A;Ti�i'i� _ �,� •,.. .., 13�i° III' i LEFT ELEVATION 2A- SPANISH REVIVAL- LOT 31 DAVIDSON COMMUNITIES C A S E r , �TIONS PLAN GROUP A rA iterts SECOND FLOOR PLAN LUL F. RORIPAUGH RANCH DAVIDSON COMMUNITIES ROOF PLAN- SPANISH REVIVAL ROOF PLAN - EAST COAST PARTIAL FIRST FLOOR PLAN- MONTEREY PARTIAL FIRST FLOOR PLAN- EAST COAST ROOF PLAN- MONTEREY FIRST FLOOR PLAN- SPANISH REVIVAL 1532 S F. TOTAL: 3,177S.F. CrA S E 3/32"=" PLAN2 GROU P ArcAitects m m M M" M m M M go" f" M m m m M � m r m a O z � N o yo Xn �Im ITEM 16 ORDINANCE 04-07 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, AMENDING SUBSECTION 15.16.020.S.1 OF CHAPTER 15.16 OF THE TEMECULA MUNICIPAL CODE TO CONDITIONALLY EXEMPT OPEN BARN STRUCTURES FROM THE REQUIREMENT FOR FIRE SPRINKLERS. THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Subsection 15.16.020.S.1 of Section 15.16.020.S of Article II of Chapter 15.16 of Title 15 of The Temecula Municipal Code is hereby amended to read as follows: "General. An automatic fire —extinguishing system shall be installed in the occupancies and locations as set forth in Section 1003.2 For provisions on special hazards and hazardous materials see Section 1001.9 and Articles 79.80 and 81. All Occupancies Unless State Code or Statutes, California Building Code, Title 24 CCR part _2, or the California Fire Code, Title 24 CCR part 9, is more restrictive, every structure hereafter constructed, except residential structures of two dwelling units or less, which exceeds the Fire area square footage as listed in Table No. A-III-A-1 of the Uniform Fire Code requiring a fire flow of 1,500 gallons per minute shall have an approved automatic fire sprinkler system installed throughout therein. la. Notwithstanding the foregoing, for U-3 occupancies, so long as the structure is used as storage barns ("pole barns") housing no persons or animals, open on all sides, and when separated from all other structures or improvements by at least 60 feet, and when also away from all property lines by at least 60 feet, an exemption to the requirement to install an automatic fire sprinkler system may be made by the Fire Chief or his or her designee, in their sole discretion, when the finding is made, in writing, by such official that such exemption will in no way diminish the safety or increase the risk to the public, and after the official has also determined that there is no reasonable likelihood that a fire in and effecting such pole barn could pose unreasonable threats to adjacent improvements, whether on or off the parcel the pole barn is located upon." R:/Ords 2004/Ords 04-07 SECTION 2. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. SECTION 3. The City Clerk shall certify to the adoption of this Ordinance. PASSED, APPROVED AND ADOPTED this 10`h day of August, 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 Ordinance No. 04-07 was duly introduced and placed upon its first reading at a regular meeting of the City Council on the 27`h day of July, 2004 and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 10`h day of August, 2004, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Susan W. Jones, CMC City Clerk R:/Ords 2004/Ords 04-07 ITEM 17 APPROVAL CITY ATTORNEY DIRECTOR OF FINA C CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Jim O'Grady, Assistant City Manager DATE: August 10, 2004 SUBJECT: Consideration of Technology Liaison or Ad -Hoc Subcommittee (Requested by Councilmember Washington) RECOMMENDATION: Consider the appointment of a Council Liaison or Ad -Hoc Subcommittee to meet with other entities to encourage coordination and collaboration of technology applications. BACKGROUND: The City of Temecula has embraced technology as a means to better communicate with our residents, to better respond to emergencies, to streamline operations, to assist in our economic development activities, and a host of other applications. In reviewing our current and upcoming efforts, Councilmember Washington noted that other agencies in the community also embrace technology such as the Temecula Valley Unified School District, the Rancho California Water District, and the various utilities and telecommunication providers. He further noted that there may be value in discussing with these public and private entities to ensure coordination and collaboration wherever possible. The liaison/subcommittee could also provide a policy perspective on use of technology in City applications such as the theater, library, alternate data center, etc. With this in mind, Council Washington would like the City Council to consider the appointment of a liaison or ad -hoc subcommittee to meet with other entities to explore methods to coordinate our technology applications, to encourage collaboration where feasible, and to provide a policy perspective on City technology applications. FISCAL IMPACT: None at this time. C %Do ments and SeltingsNi&aela.Ballreich% c l SetgngMTemporary Into el Fi1eM0LK2FA%Appointmnt 0 TeMnology Liaison a Subcommittee (Washington) 8-1004 YA. REQUESTS TO SPEAK REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date 6 16r I wish to speak on Agenda Item No. I For - Against Subject: CMG L �10 w it/ S 1 Name: r'S0'-A� 11� S I Phone: Address: City/State/Zip: TAM £ v-49 9 2 S S 7- If you are representing an organization or group, please give the name: Cl) N The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. Date REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. ja V G /0 Z b 0 I I wish to speak on Agenda Item No. � 41 For Subject: N I S T 0 K 1 C Against /AIUEN i °/�/ OLo 7aWN SPP(7/ F/C PIA it E HA Address: "� City/State/Zip: CV/Q (5 0�' �Z.s- If you are representing an organization or group, please give the name: 1�n(r--c,c� t<-s /r✓T)(IU S The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date !� For Subject: /W/XD I wish to speak on Agenda Item No. Against A u Name: Al�—�11t) jo , ekof ��(// Phone: Address: ) i vState/Zip: If you are representing an organization or group, please give the name: The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date For �( Subject: Name: wish to speak on Agenda Item No. f S Against Address: City/State/Zip: If you are representing an organization or group,, please give the name: Dxv� e-;, t �rx a cant The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. After completing, Date lb U For Subject: REQUEST TO SPEAK CITY OF TEMECULA please return to the City Clerk. Thank You. I wish to speak on Agenda Item No. Against Name: —t-Wl/ f ZZe'�Pho Address: City/State/Zip: If you are representing an organization or group, please give the name: G5� 5�5W✓ Tty�-G�l � ����> ►5 The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. DateW(JC'q Iwish to speak on Agenda Item No., For Against Subject: A�—i L LC�wi �y S Na (/L' qsl 2272 State/Zip: If you are representing an organization or group, please give the 1LVOLUI- W Ujc(-C�i name: L� up. 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.6 For Against Can /FED Subject: � G.ira Name: Address: City/State/Zip: If you are representing an organization or group, please give the name: The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. I Date /�aT� I wish to speak on Agenda Item No. ' e For Against /V Subject: < de514&15 Name: fly1Aelr Phone: Address: // City/State/Zip:CA �ZS9-2 If you are representing an organization or group, please give the name: The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. �/ L-entiek-1 1 411 Date ?- /n-o`t 1 wish to speak on Agenda Item No. �L21<56,0 For Against Subject: Name: T-Ai24 6,4e� Phone: !�oq -- 4INo3 State/Zip: -re a, 11 7.b"Zj I If you are representing an organization or group, please give the name: The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date 0&-/O-0c/ I wish to speak on Agenda Item No. (,'&hfRZY1C. PCOA-) 7 For Against Subject: IyrS7v2tCP+e .SrTS C� SilzvG�v2�3 Name: i3LILL t4,f zKaz Phone: ( Address: City/State/Zip: Tt 2&7eL/c,+ � Jt2,�_9 / If you are representing an organization or group, please give the name: I c1M i V/1CL� / hi/ST6iZiG%iG 4oCsGT`/ The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date For I wish to speak on Agenda Item Against FG Name:*'N' NGL, L-0VW' VYVb Phone: Address: City/State/Zip: 7 If you are representing an organization or group, please give the name: The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date-/O-o5/ 1 wish to speak on Agenda Item No. l For Against Name: K dwEx7 f �I vF�i�9N Phone: Address: & City/State/Zip: If you are representing an organization or group, please give the name: The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date —/0 U `f 1 wish to speak on Agenda Item No For Against Subject: �A�hb�v Name:Phone: Address: City/State/Zip: ,,ej4 If you are representing an organization or group, please give the name: W1 The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. REQUEST TO SPEAK CITY OF TEMECULA After completing, please return to the City Clerk. Thank You. Date o 1 wish to speak on Agenda Item No. For Against Subject: Name: !�—yt_{� L� Phone: Address: City/State/Zip: If you are representing an organization or group, please give the name: ��YVI Cd`_A C-,ti&��-lc A'V rV The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence 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. For Against Name: I I 16 & dd Phone: " N If you are representing an organization or group, please give the name: The City Clerk will call your name when the matter comes up. Please go to the public podium and state your name and city of residence for the record. DOCUMENTS SUBMITTED FOR THE RECORD • L First& Front 28046 Del Rio Road Suite C, Temecula, CA 925 (951) 676-4148 Fax: (951)699-4464 August 6, 2004 Dear Councilmembers 5 '30 E'L This letter is submitted regarding the Notice of Public Hearing, Case No: Update of the Old Town Specific Plan. 2o3---z/ We currently own property within the Old Town Specific Plan. We are very enthusiastic about the future development plans from both private developers and the proposed Civic Center between Mercedes Street and Interstate 15. Our concern lies specifically with the lack of parking for these new developments. The City has allowed aggressive building coverage on several ongoing developments such as The Chaparral Building, Bailey's Restaurant, the new Community Theater, the new 3-story office building on Mercedes Street, and Penfold's Creekside office building plus several more in the planning stages. All of these projects have been approved without "traditional" parking requirements (approximately l space for every 200- 250 square feet of building). This is acceptable as long as the City creates new parking to accommodate this new demand for parking spaces. When will the City build additional parking lots to accommodate this increased demand for parking spaces? Is there a square footage threshold that will trigger the construction of these new parking lots? Our fear is that the existing parking in Old Town, if not increased with new parking facilities, will be woefully insufficient for the occupants of the new buildings as well as the existing buildings. We believe the City needs to immediately create temporary parking lots on existing parcels that the City already owns. As new development comes with added parking fees, then the City can convert the temporary lots to permanent parking facilities. Without adequate parking the demand for space will decline, the rent rates will decrease, and the growth and success we have hoped for in Old Town Temecula will be stifled. We have so much potential for success within Old Town, let's not ruin it with inadequate planning. Concerned citizens, R TgWW. EpJVrson eil M. Cleveland