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HomeMy WebLinkAboutAgenda - Agenda Packets - Regular Meeting 11/5/2009AGENDA JOINT REGULAR MEETING OF THE SAN JACINTO CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO November 5, 2009, 7:00 p.m. 2045 South San Jacinto Avenue San Jacinto Unified School District Board Room, San Jacinto, CA 92583 1. ORGANIZATION 1.1 Call to Order 1.2 Roll Call 1.3 Invocation 1.4 Pledge of Allegiance 1.5 Special Presentations 1.5.1 Business Spotlight of the Month / State Farm Insurance / Indira Gonzales accepting 2. PUBLIC COMMENTS: Now is the time for the public to address the Council on any subject within the jurisdiction of the City Council not listed on the agenda. A limitation of three (3) minutes shall be set for each person desiring to address the City Council. 2.1 City Manager's Report 3. JOINT CONSENT CALENDARS (SECTIONS 3A AND 3B) The matters listed under Consent Calendars are considered routine and will be enacted by one motion by City Council Members in the form listed. There will be no separate discussion on these items prior to the motion unless members of the City Council, staff or the public requests a specified item be removed and/or discussed. If an item is pulled, it will be heard at the end of number '5. Staff Reports.' 3A CONSENT CALENDAR — CITY COUNCIL 3A.1 Waive Reading of all Ordinance Introductions and Read by Title Only / Approve / City Clerk 3A.2 Continuation of the Proclamation of the Local State of Emergency due to The Severe High and Damaging winds / Approve the continuation of the proclamation of the Local State of Emergency / City Attorney 3A.3 October 15, 2009 Minutes — Regular Meeting / Approve / City Clerk City Council Agenda November 5, 2009 Page 2 of 5 3A.4 October 19, 2009 Minutes — Special Meeting / Approve / City Clerk 3A.5 Treasurers Report for September 30, 2009 / Receive and File / City Treasurer 3A.6 Continuing Appropriations — Fiscal Year 2009-10 Budget Adjustment / Approve / Interim Finance Director 3A.7 Resolution No. / A resolution consenting to the inclusion in the Western Riverside Council of Governments (WRCOG) Energy Efficiency and Water Conservation Program / Approve and Adopt / Assistant City Manager 3A.8 Request for Appropriation of $18,840 from Water Fund for Share of Ground Water Management Plan (GWMP) Facilitation / Approve / City Manager 3B CONSENT CALENDAR — REDEVELOPMENT AGENCY 4. PUBLIC HEARING 4.1 Amendment to the Transportation Uniform Mitigation Fee (TUMF) a) Ordinance No. 09-23 / Approve introduction and first reading of Ordinance No. 09-23 and by further motion read by title only; An Ordinance Of The City Council Of The City Of San Jacinto Amending And Superseding Ordinance No. 06-08 To Update Its Participation In The Western Riverside County Transportation Uniform Mitigation Fee (Tumf) Program And Adopt A Temporary Tumf Reduction b) Resolution No. / A resolution that identifies the adjusted Transportation Uniform Mitigated Fee schedule and establishes a temporary TUMF reduction / Approve and Adopt / Assistant City Manager 4.2 Resolution No. / A Resolution Certifying the Results of an Election and Adding Property into Community Facilities District No. 2003-1, Annexation No. 53 / Approve and Adopt / Special Tax Consultant and City Attorney 4.3 Public Hearing — Landscaping, Lighting and Park District No. 2, Annexation No. 86 commonly known KZ Development Company, Assessor's Parcel Nos. 432-270-021, 432-270-022, and 432-270- 023/ Special Tax Consultant and City Attorney a. Resolution No. / Initiating Proceedings for the Annexation of Property to Landscaping, Lighting and Park District No. 2, Annexation No. 86 City Council Agenda November 5, 2009 Page 3 of 5 b. Resolution No. / Approving the Engineer's Report for the Annexation of Property to Landscaping, Lighting and Park District No. 2, Annexation No. 85. c. Resolution No. / Declaring Intention to Annex Property to Landscaping, Lighting and Park District No. 2, Annexation No. 85. d. Public Hearing / At the conclusion of the public hearing if the City Council determines that a majority protest does not exist, by motion, approve and adopt Resolution No. Ordering Annexation of Territory to Landscaping, Lighting and Park District No. 2 and Levying Assessments. 4.4 Ordinance No. 09-22 / Landscape Water Use Efficiency Requirements / Approve introduction and first reading of Ordinance No. 09-22 and by further motion read by title only; An Ordinance of the City Council of the City of San Jacinto, California, establishing Landscape Water Use Efficiency Requirements to implement the State of California Water Conservation in Landscaping Act 2006 (AB 1881) and the California Code of Regulations Title 23, Division 2, Chapter 2.7. /Planning Director 5. STAFF REPORTS At the end of the scheduled City Department items, anyone wishing to discuss a consent calendar item should come forward upon invitation of the Mayor; state their name, address, and the consent calendar item number pulled. Speakers should limit comments to three (3) minutes. 5.1 Valley Health System Measure P / Discuss and Review for Action / Assistant City Manager 5.2 Police Activities League (P.A.L) Program presentation / Presentation / Chief of Police 5.3 City council meetings being held once per month / Discuss / City Clerk 5.4 Review of TUMF Revenue and Project Funding / Receive and File / City Engineer 5.5 Lease Extension — San Jacinto Chamber of Commerce / Approve and Adopt / Assistant City Manager 5.6 Resolution No. / A Resolution Approving the Proposition 1A Securitization Program / Approve and Adopt / City Manager City Council Agenda November 5, 2009 Page 4 of 5 5.7 Award of Professional Services Contract to Recruit for City Manager / Approve Executive Recruiter and Award Contract / City Manager 5.8 Request for Appropriation of $15,000 from General Fund Contingency Reserve to Purchase and Install 105mm Replica Howitzer at Veterans Memorial at Druding Park / Approve and Appropriate Funds / City Manager 5.9 Ordinance No. 09-24 / An Ordinance regarding the Amendment to San Jacinto Municipal Code section 16.24.140 regarding Subdivision Improvement Agreement Security / Approve introduction and first reading of Ordinance No. 09-24 and by further motion read by title only AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA AMENDING SECTION 16.24.140 OF THE SAN JACINTO MUNICIPAL CODE RELATING TO SECURITY FOR IMPROVEMENT WORK NOT COMPLETED AND MONUMENTS NOT SET PRIOR TO THE RECORDATION OF A FINAL MAP 5.10 Amendment to Subdivision Improvement Agreement re Improvement Security (Puente Holdings, LLC, a California limited liability company — Tract 31886)! Approve / Assistant City Manager and City Attorney 5.11 Amendment to Subdivision Improvement Agreement re Improvement Security (Latham Management and Consulting Service, Inc., a California corporation— Tract 32053-1) / Approve / Assistant City Manager and City Attorney 6. MAYOR / COUNCIL MEMBER REPORTS / DISCUSSIONS 6.1 Sub-Committee and/or Agency Agendas! Receive and File / City Clerk 7. CLOSED SESSION 7A.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) Section 54956.9) Name of Case: City of San Jacinto v. Acting Pacific Regional Director, Bureau of Indian Affairs (Docket No. IBIA 08-122-A) 7A.2 CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Initiation of litigation pursuant to subdivision (c) of Section 54956.9: (one (1) or more potential cases) RDA CLOSED SESSION ITEMS 78.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS City Council Agenda November 5, 2009 Page 5 of 5 Property: NEC Commonwealth Avenue & San Jacinto Ave., San Jacinto, CA APN# 439-112-032 Agency negotiator: Sharon Paisley, Economic Development Manager Negotiating parties: Newton Oldacre McDonald, LLC Under negotiation: Price and terms of payment 7B.2 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 1155 South State Street, San Jacinto Negotiation Parties: Tim HuIts, Assistant City Manager and/or Barry McClellan, RDA Executive Director (for the RDA), and James Antoyan (for property owner(s)) Under negotiation: Price and terms of payment 7B3 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 1881 S. Santa Fe Avenue, San Jacinto Negotiation Parties: Tim HuIts, Assistant City Manager and/or Barry McClellan, RDA Executive Director (for the RDA), and Bruce Maize (for property owner(s)) Under Negotiation: Price and Terms 8. ADJOURNMENT If you challenge any action of the City Council in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council (c/o the City Clerk) at, or prior to, the public hearing. CHALLENGE TO LAND USE DECISIONS: Any person seeking to challenge a decision regarding land use made by the City Council as a result of a proceeding in which by law a hearing is required to be given, shall be required to commence that action 90 days following the date on which the decision of the City Council becomes final as provided in Code of Civil Procedure Section 1094.6. Please refer to Code of Civil Procedure Section 1094.6 to determine how to calculate when a decision becomes final. It is the intention of the City of San Jacinto to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact City Hall at (951) 537-6358, at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. DOCUMENTS RELATED TO OPEN SESSION AGENDAS (SB 343) -- Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the public counter located in the Administration Building of City Hall, 595 S San Jacinto Avenue, San Jacinto, California, 92583. Richard 9fliffer, Deputy, City Ckrk,of the City of San Jacinto, do here6y certib that I caused to de posted the foregoing agenda this 29th day of Octoder, 2009, as required dy law. Wichard MIThr, Deputy City CkrC None AGENDA ITEM 34 . I November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: City Attorney and City Clerk SUBJECT: Waiver of Full Reading of Ordinance(s), and Reading by Title Only RECOMMENDATION: Staff recommends that the City Council, by motion, waive the full reading of any and all ordinances on this meeting's agenda, and authorize their reading by title only. BACKGROUND: Government Code Section 36934 requires that all ordinances shall be read in full either at the time of their introduction or their passage. However, Government Code Section 36934 allows the waiver of this requirement by regular motion adopted by majority vote if the title of the ordinance is read. This waiver can be accomplished at the time of each ordinance action, or as a standing waiver, accomplished as a consent calendar motion. In order to stream-line the process for the passage of ordinances, the City Attorney and staff propose the second option, which is the waiver of any and all ordinances on this agenda. ALTERNATIVES: Approval: Approve the addition of the attached language to all future agendas of the City Council, thus waiving the full reading of all future ordinances. Denial: Do not approve the agenda language and, instead, before the passage of any ordinance and after the reading of its title, make a motion that must be adopted by majority vote that allows a waiver of the full reading. FISCAL IMPACT: Page 1 of 1 ATTACHMENT: • Resolution No. 3117 Page 1 of 1 AGENDA ITEM 3 4% 2-- November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: City Attorney SUBJECT: Continuance of the Proclamation of the Local State of Emergency due to the Severe High and Damaging Winds RECOMMENDATION: Staff recommends that the City Council, by motion, approve the continuance of the Proclamation of the Local State of Emergency due to the Severe High and Damaging Winds. DISCUSSION: On October 26, 2007, the City Council approved Resolution No. 3117 proclaiming and ratifying the existence of a local emergency, as issued by the Director of Emergency Services/City Manager and resulting from the extreme high and damaging winds that began on or about 12:00 a.m. (midnight) on October 21, 2007. Government Code section 8630 requires the City Council to review, at its regularly scheduled meetings until the local emergency is terminated, the need for continuing the local emergency. ALTERNATIVES: 1) Consent to the continuance of the Proclamation of the Local State of Emergency (Staff Recommendation). 2) Do Not Consent to the continuance. FISCAL IMPACT: The City's ability to obtain or continue to receive federal, state or regional disaster/emergency relief funding may be impacted if the City Council does not Consent to continue the proclamation of the local state of emergency. Substantial budgetary impacts are apparent for recovery efforts to include substantial employee overtime salaries; purchases of materials, supplies and equipment; use of private contractors/force labor; and other repairs to city right-of-way facilities (Preliminary estimates range from thirty five to fifty thousand dollars). Budgetary assistance and reimbursement is available from Federal Emergency Management Agency (F.E.M.A.) for related costs for limited recovery efforts to critical infrastructure including: electrical, power, telecommunications, water supply, public safety, and transportation. AGE 3A .3 MINUTES REGULAR MEETING OF THE SAN JACINTO CITY COUNCIL AND REDEVELOPMENT AGENCY October 15, 2009, 7:00 p.m. 2045 South San Jacinto Avenue San Jacinto Unified School District Board Room, San Jacinto, CA 92583 1. ORGANIZATION 1.1 Call to Order Mayor Dale Stubblefield called the regular meeting of the San Jacinto City Council and Redevelopment Agency to order at 7:04 p.m. 1.2 Roll Call Present: Jim Ayres, Steve Di Memmo, John Mansperger, Jim Potts, Dale Stubblefield Absent: None 1.3 Invocation Pastor, John Carlson, of Oasis Valley Church gave the invocation. 1 A Pledge of Allegiance Mayor Stubblefield led the Pledge of Allegiance. Mayor Stubblefield called on City Attorney Jeff Ballinger to present an emergency item which needs to be added to the agenda. City Attorney Jeff Ballinger said that it has come to Staff's attention that subsequent to the posting of the agenda there is an item that requires an action by the city council. He said he would like the council to consider the motion of adding Item 7.5 to the Closed Session which would read as follows: Public employee appointment of Interim City Manager/City Manager and make a finding that this came to staff's attention after the agenda was posted. M/S/C (Potts/Ayres) to approve the addition of Item 7.5 to the closed session. Motion Carried 5-0. Ayes: Ayres, Di Memmo, Mansperger, Potts, Stubblefield Nays: None Absent: None Abstain: None City Council Minutes October 15, 2009 Page 2 of 9 1.5 Special Presentations 1.5.1 Business Spotlight of the Month / San Jacinto Valley Academy / Penny Harrison Accepting Economic Development Manager Sharon Paisley introduced, CEO Penny Harrison and April Delara and Bob Duistermars representing the San Jacinto Valley Academy. Ms Paisley said that the school became a Charter school in 1996 and in 1997 the academy was approved by the San Jacinto Unified School District. The academy is located on a 19 acre site. In 2004 the school was allowed to expand to 580 students, 23 teachers providing education for grades K-12. Last year the academy had its first graduating class with 14 seniors. The academy is in partnership with UCR, there is a "hands on" strategy approach with parents required to volunteer sixty hours a year. San Jacinto Valley Academy is accredited as an international baccalaureate school. Mayor Dale Stubblefield read the plaque and presented it to Ms Harrison. He commented that the children of the valley are very lucky to have San Jacinto Academy. Ms Harrison said San Jacinto has had many defining moments including the city's commitment to education over the last twenty- five years. She said that the academy selected the community of San Jacinto for their school in part because of the city's commitment to education. Ms Harrison thanked the council for recognizing the academy as the Business Spotlight of the Month. Ms April Delara said the academy is pleased to be recognized and thanked the council. Mr. Bob Duistermars explained the relationship of the academy to the city and thanked the council for helping them along the way through their process. Mr. Duistermars presented the city with a Certificate of Appreciation. 1.5.2 Certificate of Appreciation to John Reyes Hurley Gonzales and Miguel De Jesus G. Rangel Jr. Fire Chief David Fulcher spoke briefly about the incident commenting on how Mr. Gonzales and Mr. Rangel witnessed a house on fire and assisted the homeowners in vacating their residence and keeping the fire at bay until the arrival of the Fire Department. City Council Minutes October 15, 2009 Page 3 of 9 Mayor Stubblefield then read the Certificate of Appreciation to Mr. Miguel De Jesus G. Rangel Jr., Mr. John Reyes Hurley Gonzales was not present. Mr. Rangel accepted the certificate and thanked the council for recognizing him. 2. PUBLIC COMMENTS: 2.0 Public Comments Lucille Hedges, 971 Cypress Dr., San Jacinto - thanked the council and then read a letter that she presented to the council. A full copy of the letter can be obtained at the City Clerks office. Ms. Hedges spoke of Agave plants that were located near the sidewalk saying they were dangerous with sharp points and could grow very large. She addressed the Cottonwood trees and pointed out the possible dangers that can be caused by the trees. She added that the Palm Trees restrict view of mansion. 3. CONSENT CALENDAR 3A CONSENT CALENDAR — CITY COUNCIL 3A.1 Waive Reading of all Ordinance Introductions and Read by Title Only / Approve / City Clerk 3A.2 Continuation of the Proclamation of the Local State of Emergency due to The Severe High and Damaging winds / Approve the continuation of the proclamation of the Local State of Emergency / City Attorney 3A.3 October 1, 2009 Minutes — Regular Meeting / Approve / City Clerk 3A.4 October 1, 2009 Minutes — Joint City Council and Planning Commission Meeting / Approve / City Clerk 3A.5 Warrants and Disbursements for September 2009 / Receive and File / Interim Finance Director 3A.6 Resolution No. 3287 / Resolution Designating Signers with Access to Safe Deposit Box at Bank of Hemet / Approve and Adopt / Interim Finance Manager 3A.7 Speed Hump Installation on Solana Street and Grassy Meadow Drive / Approve / City Engineer City Council Minutes October 15, 2009 Page 4 of 9 3A.8 Approval of consultant contract with Inland Foundation Engineering for Sanderson Avenue Widening on-call geotechnical services / Approve / City Engineer 3B CONSENT CALENDAR — REDEVELOPMENT AGENCY 3B.1 RDA report Filings for the Tax Year 2009-2010 — Annual Statements of indebtedness and AB 1389 Report / Receive and File / Interim Finance Director M/S/C (Mansperger/Potts) moved to approve the consent calendar for both City Council and Redevelopment Agency as presented. Motion Carried 5-0 with Mayor Stubblefield abstaining from Agenda Items 3A.3 and 3A.4. Ayes: Nays: Absent: Abstain: Ayres, Di Memmo, Mansperger, Potts, Stubblefield None None Stubblefield (from Agenda Items 3A.3 and 3A.4) 4. PUBLIC HEARING None 5. STAFF REPORTS Presentation on the HI NI Virus by Riverside County Department of Public Health / Presentation / Call on Dr. Laura Robert to give the presentation Dr. Laura Robert, Chief of Medical Services, County of Riverside Department of Public Health gave a presentation on the two types of flu circulating worldwide. The swine flu and the pandemic flu have infected two million people in the United States. Twenty-nine pregnant women have died as a result. The youngest death is a seventeen year old and the oldest is sixty-three. She said this was week one of the flu season and that thirty-six thousand people die every year from the flu. The majority of the people with the pandemic flu are below the age of sixty, young and otherwise healthy with mild conditions of asthma, epilepsy, or pregnancies. Dr. Robert said that the County is urging everyone to be vaccinated. Currently there are 2.1 million residents in Riverside County with 1.3 million in the high risk category. She said that the Department of Public Health has one hundred and seventy five outreach clinics but does not have the manpower to vaccinate all people. They are relying on private doctors, pharmacies, and large employers to help. Vice Mayor Mansperger said that he recently had his flu shot and asked if there were any side effects to the HI NI shot. Dr. Robert said that there were no severe side effects. City Council Minutes October 15, 2009 Page 5 of 9 Vice Mayor Mansperger asked if there were any side effects for children. Dr. Robert said there were none for children. She said that children were receiving the nasal spray vaccine, not shots at this time. There is plenty of regular flu vaccine on hand and by the end of October the H1 N1 injectable vaccine will be available for all age groups. Mayor Stubblefield asked if the county has remote clinics. Dr. Robert said the clinics have the regular flu vaccine but the ones that have the Hi NI vaccine have not been posted and won't be until they have the full range of vaccines. The information will be posted on the website as it becomes available. Mayor Stubblefield asked if a person has had the flu should they get both flue shots. Dr. Robert said that it would be advisable to get both shots. 5.2 Calendar Dates for City Council and Redevelopment Agency Meetings during November and December / Approve / City Clerk City Clerk Barry McClellan presented the staff report. He said with the reduction in work days and the limited time available during the Thanksgiving holiday it would be difficult to have necessary documents ready for the December 3, 2009 council meeting. City Clerk McClellan recommended adjourning the December 3, 2009 council meeting until December 10, 2009. He also suggested bringing a staff report to the council for their review with the possibility of changing the council meetings to once a month. M/S/C (Potts/Ayres) to approve the adjournment of the regular scheduled city council meeting on December 3, 2009 to December 10, 2009. Motion Carried 5-0. Ayes: Nays: Absent: Abstain: Ayres, Di Memmo, Mansperger, Potts, Stubblefield None None None 5.3 RDA / Consideration of approval of proposed Preliminary Report, Draft Owner Participation Rules and Draft Method of Relocation for the proposed Amended and Restated Redevelopment Plan for the Merged San Jacinto Redevelopment Project Area / Continued from October 1, 2009 / Approve / Assistant City Manager City Council Minutes October 15, 2009 Page 6 of 9 Vice Mayor Mansperger and Council Member Di Memmo abstained from Item 5.3 because they own property in the area, and left the dais at 7:41 p.m. Assistant City Manager Tim HuIts presented the staff report. He said that staff is going through an updated merger of two Redevelopment plans. Part of that process is a resolution to approve the Preliminary Report, Draft Owner Participation Rules and Draft Method of Relocation. The Preliminary Report defines the reasons for the merger and amendments, physical and economic conditions that are applicable in the project area and the analysis of the extended urbanization in the project area, also the assessment of how Redevelopment will be financed and the types of projects that will be done over the life of the project. The Owner Participation Rules are those rules that would be followed in the event a property owner wanted to enter into some sort of assistance program. The Method of Relocation establishes guidelines in event that the city was engaged in a project that would require relocation of the occupants. M/S/C (Ayres/Potts) to approve the proposed Preliminary Report, Draft Owner Participation Rules and Draft Method of Relocation for the proposed Amended and Restated Redevelopment Plan for the Merged San Jacinto Redevelopment Project Area as presented. Motion Carried 3-0. Ayes: Nays: Absent: Abstain: Ayres, Potts, Stubblefield None None Di Memmo, Mansperger Vice Mayor Mansperger and Council Member Di Memmo returned to the dais at 7:43 p.m. 5.4 Paymentus Service Agreement for Credit Card, Debit Card and Electronic Check Payment Acceptance / Approve / Interim Finance Director Interim Finance Director Connie Rogers-Elmore presented the staff report. She said at the September 3, 2009 council meeting the Finance department was directed to attempt to negotiate a one year term for a service agreement for credit card, debit card and electronic check payment. After contacting several different agencies most could provide various levels of service and payments. Some of the companies that were contacted include Collector Solutions, Inc. (CSI) based in Florida, United Merchant Services (UMS) based in California, and Enco based in Hemet. Some of these companies could not work with the city's existing software and some offered some but not all of the services that the city would need. Paymentus is considered a preferred provider and is compatible with the city's software and will absorb the cost of personnel, licensing, toll free line, City Council Minutes October 15, 2009 Page 7 of 9 hardware capacity, and on-going maintenance with no cost to the city. Their initial investment costs would be thirty thousand dollars. Interim Finance Director Rogers-Elmore said as directed the City Attorney and the Finance department attempted to restructure the contract to a one year term. Paymentus was not willing to negotiate the term limits because a one year term would not recoup their initial investment. They did offer three options. • Three-year (3) no-cost term with negotiated renewals. • B. Three-year (3) no-cost term with an option to terminate the agreement after one (1) year by providing a three-month (3) written notice stating the City Council decides not to offer similar services to its users and renewals are negotiated. • C. One-year (1) term with a termination fee ranging from $10,000 to $15,000 and renewals are negotiated. She said staff is recommending option A. Council Member Potts asked what Interim Finance Director Rogers-Elmore meant by preferred provider. Interim Finance Director Rogers-Elmore said with the city's utility software provider, Paymentus is considered a preferred provider because the computer systems are compatible. Vice Mayor Mansperger said that a three year term was fair and after that the negotiations would be performance driven. Council Member Di Memmo asked about charge backs and how fast they would happen. Interim Finance Director Rogers-Elmore said in the utility industry charge backs are rare because the customer verifies the account prior to paying. M/S/C (Ayres/Mansperger) Paymentus Service Agreement for Credit Card, Debit Card and Electronic Check Payment Acceptance. Motion Carried 5-0. Ayes: Ayres, Di Memmo, Mansperger, Potts, Stubblefield Nays: None Absent: None Abstain: None City Council Minutes October 15, 2009 Page 8 of 9 6. MAYOR / COUNCIL MEMBER REPORTS / DISCUSSIONS 6.1 Sub-Committee and/or Agency Agendas / Receive and File / City Clerk Council Member Di Memmo spoke about Ramona Pageant fundraiser pancake breakfast. Council Member Potts spoke about Regional Conservation Authority (RCA) meeting commenting that as of right now the agency has forty-four thousand acres under their management for endangered species in county. He said in regards to Western Riverside Council of Governments (WRCOG), the complete Nexus study has been returned and as a result of that study, the fees for a single family residence would be reduced. WRCOG is asking each city to consider reducing the fees by fifty percent per home. WRCOG will be requesting the City of San Jacinto City Council reduce the fees within the city by fifty percent, by form of a resolution. Council Member Potts said that on Wednesday WRCOG removed the City of Beaumont from the system for using their TUMF fees without remitting them. RCTC followed suit which means they will lose their Measure A funds as well. Council Member Ayres said RTA is working on "go pass" for MSJC to enable students to ride the RTA buses for free starting in 2010 and run through 2011. In order to implement the entire program it will cost approximately twenty-seven thousand dollars. RTA will be contacting the cities of Banning, Beaumont, Canyon Lake, Lake Elsinore, Perris, Hemet, Menifee, Murrieta, Temecula, Wildomar, the County, and San Jacinto, wherever there is a campus, requesting each city to make a contribution to share that cost. San Jacinto's share would be $2778. This will allow a student using their Student ID card free use on the RTA bus. The intention is to show the students the benefits of public transit and get them used to it. In the year 2011 RTA will begin charging a nominal fee. Council Member Ayres said he would like to see someone from RTA come to a future council meeting and give a brief presentation on this program. He asked City Manager McClellan to look into arranging something. Vice Mayor Mansperger attended the Estudillo Mansion committee and said that things are looking great however there are a few things yet to be completed. He also attended the San Jacinto Chamber mixer which was held a Dar Mar and it was well attended. Mayor Stubblefield had nothing to report. Mayor Stubblefield recessed at 8:00 pm and reconvened in Closed Session at 8:10 pm. City Council Minutes October 15, 2009 Page 9 of 9 7. CLOSED SESSION 7.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) Section 54956.9) Name of Case: City of San Jacinto v. Acting Pacific Regional Director, Bureau of Indian Affairs (Docket No. IBIA 08-122-A) 7.2 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 1155 South State Street, San Jacinto Negotiation Parties: Tim HuIts, Assistant City Manager and/or Barry McClellan, RDA Executive Director (for the RDA), and James Antoyan (for property owner(s)) Under negotiation: Price and terms of payment 7.3 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 1881 S. Santa Fe Avenue, San Jacinto Negotiation Parties: Tim HuIts, Assistant City Manager and/or Barry McClellan, RDA Executive Director (for the RDA), and Bruce Maize (for property owner(s)) Under Negotiation: Price and Terms 7.4 CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Initiation of litigation pursuant to subdivision (c) of Section 54956.9: (one (1) or more potential cases) 8. ADJOURNMENT With no further business before the City Council, Mayor Stubblefield adjourned the meeting at 8:55 p.m. City of San Jacinto Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk Approved as read: Approved as amended: - AGENDA 3A•(--1 MINUTES SPECIAL MEETING OF THE SAN JACINTO CITY COUNCIL October 20, 2009, 6:00 p.m. 2045 South San Jacinto Avenue San Jacinto Unified School District Board Room, San Jacinto, CA 92583 1. ORGANIZATION 1.1 Call to Order Vice Mayor John Mansperger called the special meeting of the San Jacinto City Council to order at 6:03 p.m. 1.2 Roll Call Present: Jim Ayres, Steve Di Memmo, John Mansperger, Jim Potts Absent: Dale Stubblefield 2. PUBLIC COMMENTS: 2.0 Public Comments None 3. CONSENT CALENDAR None 4. PUBLIC HEARING None 5. STAFF REPORTS 5.1 Award of Contract, 2009 Downtown Pavement Rehabilitation Project/ Award of Contract / City Engineer City Engineer Habib Motlagh presented the staff report. He said on October 19, 2009 the City Clerks office opened bids for the 2009 Downtown Pavement Rehab Project. There were a total of twelve bids received, with the low bid submitted from Matich Corporation, of San Bernardino, in the amount of $454,545. The bid is broken down by location: • The downtown improvements were $343,432 • Sidewalk construction and minor pavement widening on Commonwealth was $73,613 City Council Minutes October 20, 2009 Pacie 2 of 4 • Speed humps were $37,500. City Engineer Motlagh asked the council to approve the award of contract to Matich Corporation. He further asked the council to allow leftover funding from the completed De Anza Drive Improvement project (CIP 05-106) be transferred to the Downtown Rehabilitation project. A transfer of $75,000 will fully fund the construction. The De Anza project has an available balance of $161,000. Council Member Ayres asked about the twenty percent contingency. City Engineer Motlagh said that they have asked for a little more than the twenty percent contingency in the event that when the project is in progress there may be a little more work that needs to be done. Council Member Ayres asked City Engineer Motlagh to look at the area of Second Street and Ramona Blvd. to see if any work could be done, if there was money left in the contingency. City Engineer Motlagh said he would recommend as the job progresses if there is money left over he will look at that area. If it fits in the budget it can be included, if the work is too much he can bring it back at a later date with another project. M/S/C (Ayres/Potts) to Award Contract, 2009 Downtown Pavement Rehabilitation Project to Matich Corporation, in the amount of $454,545 as presented. Motion Carried 4-0. Ayes: Ayres, Di Memmo, Mansperger, Potts Nays: None Absent: Stubblefield Abstain: None 5.2 Award of Contract, Ramona Expressway Pavement Rehabilitation Project (State Street to Lake Park Drive) / Award of Contract / City Engineer City Engineer Habib Motlagh presented the staff report He said the reason for the special meeting to approve this item is because of the special type of paving that is being used and must be completed in warmer weather. It will be a short project; the recycled asphalt portion will be done within the next three weeks. He said on October 19, 2009 the City Clerks office opened bids for the Ramona Expressway Pavement Rehab Project. There were a total of nine bids received, with the low bid submitted from Matich Corporation, of San Bernardino, in the amount of $1,775,000. He said construction is scheduled to begin in early November and should be completed by the middle of January. City Engineer Motlagh said there would be no full road closure of Ramona Expressway during construction. He said the contractor would be allowed to close one lane at a time and traffic will be flagged through the work zone. City Engineer Motlagh asked the council to approve the award of contract for the Ramona Expressway City Council Minutes October 20, 2009 Page 3 of 4 Pavement Rehabilitation Project to Matich Corporation in the amount of $1,775,000. Council Member Ayres asked City Engineer Motlagh about the detour plan. City Engineer Motlagh said there would not be a detour as far on Ramona Expressway, however, at Eagle there would be a detour around to State Street. Council Member Potts asked how many other cities have been using the recycled pavement process. City Engineer Motlagh said Moreno Valley and County of Riverside have been using it. Council Member Potts asked if the city has ever used rubberized asphalt. City Engineer Motlagh said the city has and staff tried to do that for this project but it did not qualify for a grant. It is expensive but lasts longer. Rubberized asphalt is being considered for the Ramona Expressway Widening from State St. to Sanderson Ave. Council Member Potts commented that not only is this project getting done but the city is being environmentally friendly by using the recycled asphalt. Vice Mayor Mansperger asked what kind of advance notice the area residents are being given about this project. City Engineer Motlagh said that the contractor will be placing signs a few days in advance and will meet with the schools and the police department to go over the detours. Vice Mayor Mansperger thanked Council Member Potts for his contributions in getting this project off the ground. M/S/C (Ayres/Potts) to Award Contract, Ramona Expressway Pavement Rehabilitation Project (State Street to Lake Park Drive) to Matich Corporation, in the amount of $1,775,000. Motion carried 4-0. Ayes: Nays: Absent: Abstain: Ayres, Di Memmo, Mansperger, Potts None Stubblefield None 6. MAYOR / COUNCIL MEMBER REPORTS / DISCUSSIONS 6.1 None City Council Minutes October 20, 2009 Page 4 of 4 7. CLOSED SESSION 7.1 None 8. ADJOURNMENT With no further business before the City Council, Vice Mayor Mansperger adjourned the meeting at 6:16 p.m. City of San Jacinto John Mansperger, Vice Mayor ATTEST: Barry McClellan, City Clerk Approved as read: Approved as amended: - AGENDA ITEM 34.6 November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Bernard Simon, City Treasurer SUBJECT: Treasurer's Report at September 30, 2009 RECOMMENDATION: Receive and File Treasurer's Report for September 30, 2009. BACKGROUND: The Treasurer's Report is required to be presented to the governing body at least quarterly in accordance with California Government Code Section 53600 et. seq. DISCUSSION: Total Cash and City Investments decreased 4.50% during the month. This includes cash, cash in bank and cash with trustee. The attached Treasurer's report is a "snapshot" report of our cash position on the last day of the month in all of our accounts. A section demonstrating compliance with the adopted Investment Policy and a chart depicting historical interest rates for certain positions is also included. FISCAL IMPACT: None. ATTACHMENTS: Treasurer's Report for the month ending September 30, 2009. Approvals City Manager: ( 4 OAFinance Director: ,,, 0.000% 0.000% 0.000% 0.070% 4.050% 0.070% 0.070% 0.070% 0.070% 0.070% 0.070% 0.070% 0.070% 0.000% 0.000% 0.070% 0.000% 0.000% 0.000% 0.070% 4.126% 0.070% 0.070% 0.070% 0.070% 0.070% 0.070% 0.070% 0.070% 0.000% 0.000% 0.070% TREASURER'S REPORT FOR THE MONTH ENDING SEPTEMBER 30, 2009 Page 1 TOTAL CITY INVESTMENTS & FUNDS INVESTMENT TYPE STATE POOL STATE POOL CAMP MONEY MARKET DEMAND Account PAYROLL Account CD CD Cash Cash INSTITUTION SERIAL # L.A.I.F. L.A.I.F. - RDA Joint Powers Authority Bank of Hemet Bank of Hemet Bank of Hemet Bank of Hemet Rabobank Cash in EOC Lockbox Cash on Hand INTEREST PURCHASE RATE YIELD DATE 0.903% 0.907% Various 0.903% 0.907% Various 0.380% 0.381% Various 0.930% 0.934% Various 0.000% 0.000% Various 0.000% 0.000% Various 2.240% 2.263% 09/28/09 1.900% 1.917% 09/09/09 0.000% 0.000% Various 0.000% 0.000% Various MATURITY DATE Open Open Open Open Open Open 09/28/12 09/09/12 n/a n/a 08/31/2009 PREV. MONTH BALANCE $38,953,588 $8,612,360 $251,140 $10,369,550 $346,557 $20,057 $0 $0 $5,000 $850 $58,559,102 09/30/2009 CURRENT BALANCE K $38,953,588 • $8,612,360 $251,219 $7,601,894 • $650,667 • $19,589 • $500,000 • $500,000 • $5,000 $850 % change from prior month 0.00% 0.00% 0.03% -26.69% 87.75% 100.00% 100.00% 0.00% 0.00% 09/30/2009 MARKET VALUE $39,063,679 $8,636,488 $251,219 $7,601,894 $650,667 $19,589 $500,000 $500,000 $5,000 $850 COMPUTED ACCRUED INTEREST $110,091 $24,128 n/a n/a n/a n/a $63 $559 n/a n/a $57,095,167 -2.50% $57,229,386 $134,841 RESTRICTED CASH WITH FISCAL AGENT (BOND FUNDS) CFD NO 2 Mutual Fund Mutual Fund Mutual Fund Mutual Fund Corporate Obligations Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Trustee Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Bayerische Lankbk GIC Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund Union Bank Blackrock Prov. T-Fund TOTAL CFD NO 2 XXXXXX5201 XXXXXX5202 XXXXXX5203 XXXXXX5204 XXXXXX5204 XXXXXX5205 XXXXXX5208 XXXXXX5301 XXXXXX5401 XXXXXX5403 XXXXXX5405 XXXXXX5406 XXXXXX5501 =000(5502 XXXXXX5503 XXXXXX5506 Various Various Various Various 10/10/2002 Various Various Various Various Various Various Various Various Various Various Various Open Open Open Open 09/01/2014 Open Open Open Open Open Open Open Open Open Open Open ($14,996) $123,173 $760,000 $30,327 $748,800 $36,698 $266 $224 $692,122 $28 $187,663 $26,023 $939 $0 $0 $24,171 $2,615,438 $0 $0 $0 • $15,332 • $748,800 • $36,698 $266 $224 • $53,079 $28 • $187,663 • $22,784 $939 $0 $0 • $24,171 -100.00% -100.00% -100.00% -49.44% 0.00% 0.00% 0.00% 0.00% -92.33% 0.00% 0.00% -12.45% 0.00% 0.00% 0.00% 0.00% $0 $0 $0 $15,332 $748,800 $36,698 $266 $224 $53,079 $28 $187,663 $22,784 $939 $0 $0 $24,171 $1,089,984 $1,089,984 -5832% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a rT4 2005 RDA SAN JACINTO TAX ALLOCATION BONDS Mutual Fund Union Bank Blackrock Prov. T-Fund XXXX75750X 0.095% 0.095% Various Open $3,057,561 H $3,057,572 0.00% $3,057,572 n/a 1997 WATER IMPROVEMENT REVENUE BONDS Mutual Fund Union Bank Blackrock Prov. T-Fund XXXX59800X 0.070% 0,070% Various Open $234,967 H $519,905 121.27% $519,905 n/a 2002 WATER REVENUE BONDS Prepared By: General Accounting Manager 10/15/2009 Page 2 TREASURER'S REPORT FOR THE MONTH ENDING SEPTEMBER 30, 2009 08/31/2009 09/30/2009 % change 09/30/2009 COMPUTED INVESTMENT INSTITUTION INTEREST PURCHASE MATURITY PREV. MONTH CURRENT from prior MARKET ACCRUED TYPE SERIAL # RATE YIELD DATE DATE BALANCE BALANCE month VALUE INTEREST Mutual Fund Union Bank Blackrock Prov. T-Fund XXXX68290X 0.070% 0.070% Various Open $1 H $37,337 3733600.00% $37,337 n/a 1999 RDA SOBOBA TAX ALLOCATION BONDS Mutual Fund Union Bank Blackrock Prov. T-Fund XXXX62740X 0.000% 0.000% Various Open $245,868 H $0 -100.00% $0 n/a TOTAL CASH WITH FISCAL AGENT $6,153,835 $4,704,798 -23.55% $4,704,798 n/a TOTAL ALL FUNDS $64,712,937 $61,799,965 -4.50% $61,934,184 $134,841 PER INVESTMENT POLICY: Maximum % Current % In Compliance? Level 1 - Investments U.S. Treasury Bills, Notes and Bonds 100% 0% Yes Negotiable CDs 10% 0% Yes Obligations issued by U.S. Government Agencies 100% 0% Yes Commecial Paper 15% 1% Yes Medium Term Notes 20% 0% Yes Repurchase Agreements 10% 0% Yes Time Deposits 25% 2% Yes Mutual Funds (Limited to U.S. Treasuries) 18% 6% Yes Mutual Funds (Limited to U.S. Govt. Sec.) 18% 0% Yes Level 2- Investments Money Market Funds (non-brokered) 20% 12% Yes LAIF 90% 77% Yes CAMP (pool account) 50% 0% Yes Cash & Demand Accounts n/a n/a n/a I CERTIFY THAT THESE INVESTMENTS COMPLY WITH ALL STATE LAWS PERTAINING TO THE INVESTMENT OF LOCAL AGENCY FUNDS AND THE CITY OF SAN JACINTO'S INVESTMENT POLICIES. CITY OF SAN JACINTO MEETS OR EXCEEDS THE SIX MONTH CASH FLOW REQUIREMENTS AS PER GOVERNMENT CODE 53646(b)(3). BERNARD SIMON, TREASURER City of San Jacinto Prepared By: General Accounting Manager 10/15/2009 A $0 $0 $0 $748,800 $0 $0 $1,000,000 $3,955,998 $0 $7,601,894 K $47,565,948 $251,219 $676,106 6-61,799796-5 1 < CL 2 1 fl 0 J1 Interest Rates - 10/06 to 9/09 L0/9 LOIt L01£ LO/Z LO/ 90/Z1. 90/1.1. 90/01. 60/6 60/8 60/L 60/9 60/9 60/t 60/C 60/Z 60/ 80/3 k. 80/1.1. 80/01. 80/6 90/9 COM 80/9 80/9 80/t/ 80/C 80/3 SO/ LO/Z LO/1.1. L0/0 I- L0/6 L0/9 LOI L L0/9 tri DATE: 10/13/09 CJRE Name or In 3A . AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Enc:-sure: Staff Report for CC [CC or RDA] (date) meeting of 11/05/09 Continuing Appropriations — FY 2009-10 Budget Adjustment XX Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s)) City Departments Item Attachments include (this needs to match the attachment list in the Staff Report: A. Copy of Resolution No. 3272 B. Sched. of Purch. Orders to be rolled from 08/09 to 09/10 Other: Capital Projects Schedules (3) Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting: \\SJFP01\Users\CRogers\A Director\A Finance Dtr\Council Reports\00 CC Transmittal Format.doc Page 1 of 2 AGENDA ITEM November 5, 2009 TO: Honorable Mayor and Members of the City Council FROM: Connie Rogers-Elmore, Interim Finance Director VIA: Thomas Prill, General Accounting Manager SUBJECT: Continuing Appropriations — FY 2009-10 Budget Adjustment RECOMMENDATION It is recommended that the City Council approve continuing appropriations of $29,130,835 from original designated fund balances for construction-in-progress projects and various other expenditures encumbered at June 30, 2009 into the FY 2009-10 Budget. SUMMARY This budget action adjusts the FY 2009-10 Budget for continuing appropriations on capital projects and various other expenditures that were in progress in the prior fiscal year but not yet completed at June 30, 2009. BACKGROUND The original budget generally requests appropriation of funds for new expenditures and capital projects, or for construction-in-progress projects requiring additional funding. It is generally assumed that budgeted expenditures are completed in the year the budget is adopted. However, some expenditures, particularly capital projects, may not fully complete within the same budget cycle, requiring carryover into subsequent budget years. DISCUSSION: Resolution No. 3272, adopting the Fiscal Year 2009-10 budget, authorizes in Section 7 the carryover of unexpended, unencumbered Capital Project Funds, estimated at $28,841,771. The actual carryover amount from June 30, 2009 is $29,111,469. Additionally, the carryover of certain purchase orders ($19,366) initiated prior to year end and not fully expended by June 30, 2009, is necessary (purchase orders 9699 and 9704 totaling $459,646 are included in the CIP carryover amount). The total budget adjustment to City Funds is $29,130,835. ALTERNATIVES: 1) Approve and appropriate funds; 2) Do not approve or appropriate; 3) Recommend alternatives to staff. FISCAL IMPACT: An estimate of the proposed continuing appropriations was assumed in establishing the adopted FY 2009-10 budget. Total budget adjustment to City Funds is $29,130,835. ATTACHMENTS: Copy of Resolution No. 3272 Schedule of Purchase Orders to be Rolled Over From 08/09 to 09/10 Capital Projects Schedules (3) Page 2 of 2 STATE OF CALIFORNIA) RESOLUTION NO. 3272 COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO) RESOLUTION OF THE CITY OF SAN JACINTO, CALIFORNIA, ADOPTING A BUDGET FOR FISCAL YEAR 2009-2010 WHEREAS, the City of San Jacinto operates on a fiscal year calendar beginning on July 1 st of each year and ending on June 30 th of the next year; WHEREAS, the City of San Jacinto wishes to adopt a budget for the fiscal year 2009-2010 for expenditures based on estimated revenues and available fund balance reserves; and WHEREAS, City staff has presented an overall operating budget and capital budget containing the General, Development Services, Special Revenue, Internal Service, Debt Service, Capital Project, Enterprise, and Redevelopment Funds, to meet the needs of the citizens of the City of San Jacinto; and WHEREAS, the City Council has thoroughly examined and analyzed the proposed budget in order to meet the needs of the citizens of the City of San Jacinto; and NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of San Jacinto as follows: Section 1. The budget for Fiscal Year 2009-2010, a copy of which is on file in the City Clerk's Office, is hereby adopted with projected beginning (combined) fund balances of $66,149,597, total expenditures (excluding capital transfers out) of $73,151,266, including total capital expenditures of $33,626,767, to be funded by revenues (excluding capital transfers in) of $56,619,541, and the use of available fund balance of $16,531,725. (Reference "Exhibit A") Section 2. All funds are authorized as presented in the budget document. Section 3. City Manager is hereby authorized to make budget adjustments to the adopted budget to reallocate appropriations between departmental activities and between City funds. Only the City Council, by motion and affirmative majority vote, through minute action or resolution, may increase or decrease the total estimated revenues and total adopted expenditures in the FY 2009-2010 Adopted Budget. Section 4. Rescind any and all previous General Fund Reserve Designations and designate General Fund Reserves as follows: Contingency Reserve set at a minimum of 15% or $3,858,280 (net of projected $1,292,536 to fund an advance to the Page 1 of 3 Public Safety CFD 2003-1 fund); and a Capital Reserve of $9,711,903 (based on the estimated beginning fund balances, original appropriations and estimated revenues). Section 5. General Fund administrative overhead consisting of costs from City Council, City Manager, City Clerk, Human Resources, Finance, and Non-departmental services shall be allocated to program cost centers, charged on a prorated basis to cost of funding. In all cases where a Capital Project is financed by debt, except in cases of RDA funds, no overhead cost allocation will be made to debt funds. In addition, overhead allocation will be limited in the following funds: A. Gas Tax Fund - Not to exceed 5% of revenues B. Measure A Fund - Not to exceed 5% of revenues C. Air Quality Improvement Fund - Not to exceed 5% of revenues D. COPS Grant Fund - Not to exceed 0.5% of revenues Section 6. Internal Service Funds for information technology, general liability, worker's compensation, and unemployment insurance will be allocated to funds based on: A. Information Technology — percentage of desktop computers in each department or program B. General Liability — percentage of department or program cost C. Worker's Compensation — percentage of payroll in each department or program D. Unemployment Insurance - percentage of payroll in each department or program Section 7. Continuing appropriations are authorized for all unexpended purchase orders, as well as Capital Project Funds from all previous fiscal years as presented in the Construction in Progress (CIP) Schedule of the budget. The estimated carryover of such project costs for all City funds is estimated for June 30, 2009 at $28,841,771. PASSED, APPROVED, and ADOPTED this 4th day of June 2009 by the following vote: Ayes: Ayres, Di Memmo, Mansperger, Potts, Stubblefield Nays: None Absent: None Abstain: None Page 2 of 3 City of San Jacinto ATTEST: Barry McpWran, City Clerk APPROVED AS TO FORM: Best, Best & Krieger, LLP. Page 3 of 3 CITY OF SAN JACINTO SCHEDULE OF PURCHASE ORDERS TO BE ROLLED-OVER FROM 08/09 TO 09/10 P.O. P.O. # DATE VENDOR PURPOSE ORIGINAL OR ROLL-OVER P.O. AMOUNT ROLL-OVER AMOUNT AMOUNT IN 08/09 TO 09/10 ACCOUNT 9474 06/22/2007 9475 06/22/2007 9493 07/31/2007 9698 06/17/2009 9699 06/18/2009 9704 06/29/2009 TBD FY 09/10 SunGard HTE, Inc. SunGard HTE, Inc. ACOM Solutions, Inc. Alice Reed, CMC Gaudet Design Group Hamel Contracting, Inc. Electrovote, LLC Work Order Training Software, maintenance - Looking Glass Viewer Laser Check Printing solution City Clerk Consultant CIP #04-077 - Estudillo Mansion Grant CIP #08-012 - Police Station Expansion Council Chamber Voting System 8,021.14 2,242.25 7,609.42 3,557.75 3,006.00 3,006.00 78.81 (1,676.21) 543.21 543.21 3,500.00 720.00 6,000.00 453,646.00 5,000.00 5,778.89 010-1400-414.40-45 4,051.67 010-1400-414.40-45 010-1400-414.30-90 1,755.02 010-1400-414.34-05 010-1400-414.40-45 2,780.00 010-1110-411.30-90 6,000.00 " 199-9999-425.40-01 453,646.00 " 199-9999-425.40-01 5,000.00 010-1100-411.40-45 TOTAL 487,404.58 8,393.00 479,011.58 Included in Capital Projects Roll-over (459,646.00) * 19,365.58 STATE OF CALIFORNIA) ORDINANCE NO. 09-24 COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA AMENDING SECTION 16.24.140 OF THE SAN JACINTO MUNICIPAL CODE RELATING TO SECURITY FOR IMPROVEMENT WORK NOT COMPLETED AND MONUMENTS NOT SET PRIOR TO THE RECORDATION OF A FINAL MAP WHEREAS, The City Council previously adopted section 16.24.140 to the San Jacinto Municipal Code ("Code"), requiring a land divider furnish security when the land divider enters into an agreement with the city to complete improvement work not finished or monuments not set prior to the recordation of the final map; and WHEREAS, Code section 16.24.140 currently does not specify what forms of security are acceptable; and WHEREAS, Government Code section 66499, subdivision (a), subsection (5) provides that a city may specify by ordinance what forms of security are acceptable; and WHEREAS, the City desires to amend Code section 16.24.140 to specify what forms of security are acceptable. THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, DOES ORDAIN AS FOLLOWS: Section 1. The City Council hereby adopts the recitals of this Ordinance as true and correct and such recitals are hereby incorporated by reference as though fully set forth in the text of this Ordinance. Section 2. Section 16.24.140(a) of the San Jacinto Municipal Code is hereby amended to read as follows: "A. General. If any of the improvement work is not completed or any monuments not set prior to the recordation of the final map, the land divider shall enter into an agreement with the City to complete the remaining improvements and shall furnish to the City one of the following forms of security, at the sole and absolute discretion of the City Council: (1) Bond or bonds by one or more duly authorized corporate sureties; or Page 1 of 4 (2) A deposit, either with City or a responsible escrow agent or trust company, at the option of the city, of money or negotiable bonds of the kind approved for securing deposits of public moneys; or (3) An instrument of credit from an agency of the state, federal, or City when any agency of the state, federal, or City provides at least 20 percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment, or a letter of credit issued by such a financial institution; or (4) A lien upon the property to be divided, created by contract between the owner and the City, if the City finds that it would not be in the public interest to require the installation of the required improvement sooner than two years after the recordation of the map; or (5) Security interests in real property, including, but not limited to, deeds of trust" Section 3. Severability. Should any provision, section, paragraph, sentence or word of this section be determined or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this section shall remain in full force and effect. Section 4. CEQA. Pursuant to the CEQA process, this ordinance is exempt from further environmental review under the California Environmental Quality Act ("CEQA") (Cal. Pub. Resources Code, §§ 21000) and its implementing regulations because the proposed amendment is not a 'project' within the meaning of CEQA Regulations section 15378(b)(2) in that it is merely general policy or procedure making and because the ordinance is exempt from further environmental review pursuant to CEQA Regulations section 15061(b)(3) based on the fact that the ordinance is within the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment and it can be seen with certainty that there is no possibility that the ordinance may have a significant effect on the environment. Therefore, staff will file a Notice of Exemption with the County within 3 working days of the adoption of this ordinance. Page 2 of 4 Section 5. Effective Date. This ordinance shall take effect and be in full force on the 30th day from and after its second reading. Introduced at a regular meeting of the San Jacinto City Council on the 5th day of November, 2009, by the following vote: PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the th day of , 200 by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto By Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP Jeffrey S. Ballinger, City Attorney Page 3 of 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) I, Barry McClellan, hereby certify that the foregoing is a true copy of Ordinance No. introduced at a regular meeting held the 5th day of November, 2009, and duly adopted by the City Council of the City of San Jacinto, California at a regular meeting thereof held the day of , 2009. WITNESS my hand and official seal of the City of San Jacinto this day of 2009. Barry McClellan, City Clerk Page 4 of 4 AGENDA ITEM E. l November 5, 2009 TO: The Honorable Mayor and City Council FROM: Asst. City Manager and City Attorney SUBJECT: Amendment to Subdivision Improvement Agreement re Improvement Security (Puente Holdings, LLC, a California limited liability company — Tract 31886) RECOMMENDATION: Consider, discuss and approve Amendment to Subdivision Improvement Agreement with Puente Holdings, LLC. Authorize execution of Agreement and related document, in substantially the form attached, with any minor revisions acceptable to the City Manager and City Attorney. DISCUSSION: As a result of the severe economic downturn, especially in the housing market, the City of San Jacinto (along with a number of other jurisdictions) has been approached by subdividers seeking relief from the cost of bond premiums associated with their subdivision improvement agreements. The California Subdivision Map Act (Gov. Code §§ 66410 et seq.) (the "Act") allows subdividers to obtain final subdivision maps prior to the time they install all of the required public improvements (i.e., streets, curbs, gutters, etc.), but only if the subdivider agrees, in writing to install the public improvements within a certain time period. The Act requires that, if such a "subdivision improvement agreement" is approved by the City, the subdivider must post security, in a form approved by the City, to ensure the full performance of that obligation to install the public improvements. The Act specifies what types of security may be accepted by the City. By far, the most common security is a traditional surety bond. However, the Act also permits the following types of security: • A deposit, either with the city or a responsible escrow agent or trust company, at the option of the city, of money or negotiable bonds of the kind approved for securing deposits of public moneys. • An instrument of credit from an agency of the state, federal, or local government when any agency of the state, federal, or local government provides at least 20 percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment, or a letter of credit issued by such a financial institution. Approvals City Manager:•) Page 1 of 2 Finance Directo : • A lien upon the property to be divided, created by contract between the owner and the city , if the city finds that it would not be in the public interest to require the installation of the required improvement sooner than two years after the recordation of the map. • Any form of security, including security interests in real property, which is acceptable to the city and specified by ordinance thereof. In this case, the subdivider has proposed a deed of trust to be posted in lieu of the bonds for the "in-tract" improvements. The Ramona Expressway and perimeter work would still be secured by traditional surety bonds. If the City were to accept a deed of trust against the subdivided property, in the event of a default by the subdivider, in order to act on the security, the City would have to notify the subdivider of the default, provide an adequate opportunity for the subdivider to cure, and if the subdivider fails to do so, file a court action to foreclose on the deed of trust. This is in contrast to a situation where the subdivision agreement is secured by a bond. In that situation, the City would have to notify the surety of the default, allow the surety to perform on behalf of the subdivider, and then the City would have to file a court action against the subdivider and surety. Both situations would likely involve fairly substantial legal expense. The proposed agreement with Puente Holdings provides that Puente Holdings can post a deed of trust in lieu of the bonds that are posted for the in-tract improvements. The Ramona Expressway and perimeter work would still be secured by traditional surety bonds. In addition, the subdivider has agreed to pay the City $25,000 per year for the City's administration and the risk that is involved to the City in substituting the security. ALTERNATIVES: 1) Discuss and approve the accompanying Amendment to Subdivision Improvement Agreement. 2) Discuss and direct City staff to bring back a modified Amendment. 3) Take no action. FISCAL IMPACT: The Council's discussion of this topic and approval of this agreement is not likely to have any significant budgetary impact. However, the subdivider has agreed to pay the City $25,000 per year for this amendment. Attachments: Amendment to Subdivision Improvement Agreement Page 2 of 2 RECORDING REQUESTED BY: WHEN RECORDED RETURN TO: CITY OF SAN JACINTO 595 S. SAN JACINTO AVE. SAN JACINTO, CA 92583 ATTN: CITY CLERK SPACE ABOVE THIS LINE FOR RECORDER'S USE Exempt from recording fee, per Government Code Section 6103 CITY OF SAN JACINTO, CALIFORNIA By: City Clerk AMENDMENT TO THE SUBDIVISION IMPROVEMENT AGREEMENT FINAL TRACT MAP 31886 between THE CITY OF SAN JACINTO a California municipal corporation AND PUENTE HOLDINGS, LLC a California limited liability company AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT FOR FINAL TRACT MAP 31886 Parties and Date. This Amendment to the Subdivision Improvement Agreement for Final Tract Map 31886 ("Amendment") is made and entered is as of this day of , 2009, by and between the City of San Jacinto, a municipal organization organized under the laws of the State of California, with its principal place of business at 595 S. San Jacinto Avenue, San Jacinto, CA 92583 ("City") and Puente Holdings, LLC, a California limited liability company, with its principal place of business at 6055 Abbottswood Row, La Jolla, CA 92037 ("Developer"). City and Developer are sometimes individually referred to as "Party" and collectively as "Parties". 2. Recitals. 2.1 Agreement. The City has conditioned the approval of the final map for Tract No. 31886, real property located within City, a legal description of which is attached hereto as Exhibit "A" and incorporated herein by reference, on the timely construction of completion of public improvements as set forth in the Subdivision Improvement Agreement for Final Tract Map 31886 dated , 20 ("Agreement"). Developer is the successor in interest to the Agreement, by reason of Developer's acquisition of the property subject to the Agreement. 2.2 Amendment Purpose. The City and Developer desire to amend the aforesaid Agreement to provide for the substitution of security, as required by the Agreement and the California Subdivision Map Act (Gov. Code §§ 66410 et seq.) (the "Act"). 2.3 Amendment Authority. Section 66499(a) of the Government Code (contained in the Act) authorizes, but does not require, the City to accept, in lieu of a traditional surety bond, a deed of trust, secured by the property to be divided, in order to secure the performance of the Developer's obligations under the Agreement. 2.4 Request and Approval of City Council. Developer has made a written request to the City of San Jacinto City Council ("City Council") for its approval of an alternative form of security, in accordance with the provisions of the Act. The City Council finds that it would not be in the public interest to require the installation of certain in-tract public improvements sooner than two years after the recordation of the map. 3. Terms. 3.1 New Section 13.5. A new Section 13.5 of the Agreement is hereby added to read as follows: "13.5 Alternative Security; Deed of Trust. Developer may, at its election, substitute alternative security in the form of a deed of trust, substantially in the form attached hereto as Exhibit "C" ("Alternative Security"), to secure the performance of the Developer's obligations to satisfactorily complete all of the in- 1 tract Public Improvements, not including the Ramona Expressway and other perimeter improvements, as set forth in Exhibit "B" (the "In-Tract Public Improvements"). The Developer's obligation to satisfactorily complete the Ramona Expressway and other perimeter improvements (as set forth in Exhibit "B") shall be secured by the Security set forth in Section 13.0 through 13.4 hereof and elsewhere in this Agreement. City shall not be required to release or reduce any surety bond for any of the In-Tract Public Improvements unless and until Developer has provided fully executed and recordable forms of Alternative Security, in a form and substance required hereby, and then only to secure the performance of the obligations set forth herein. The amount of any Security or Alternative shall be based on the City Engineer's approximation of the actual cost to construct the applicable Public Improvements, including the replacement cost for all landscaping ("Estimated Costs"). If City determines, in its sole and absolute discretion, that the Estimated Costs have changed, Developer shall adjust the Security, Alternative Security, or both, in the amount requested by City. Developer's compliance with this provision (Section 13.0 et seq.) shall in no way limit or modify Developer's indemnification obligation provided in Section 16.0 of this Agreement. No Entitlement, as that term is defined below, associated with the Property shall be issued by the City unless and until the Alternative Security is replaced with a traditional surety bond, in a form and amount approved by the City Council." 3.2 Amendment Fee. Developer shall pay to the City of San Jacinto a fee equaling Twenty Five Thousand Dollars ($25,000) prior to the City's execution of this Agreement, and on each anniversary of said date, until the Security provided in Section 3.1 hereof is substituted with security in the form of surety bonds acceptable to the City. In the event Developer fails to pay any such obligation when it becomes due, the amount due and owing shall accrue interest, to the benefit of the City, at the maximum rate established by law, or 10% per annum, whichever is higher. The fee may be used by the City for any lawful purpose. In addition to any other remedies that may be available to the City to collect any delinquent amount due under this Agreement, including without limitation, any action of money damages, the City shall be entitled to: (1) add the delinquent amount to the amount secured by the Security; or (2) withhold, without liability on the part of the City, any future entitlements associated with the Property, whether discretionary or ministerial, including, without limitation, any of the following "Entitlements": general plan amendment, zone change, parcel or tract map, variance, conditional use permit, grading permit, building permit, or certificate of occupancy; or (3) exercise the remedies set forth in both (1) and (2) above. 3.3 Continuing Effect of Agreement. Except as amended by this Amendment, all other provisions of the aforementioned Agreement remain in full force and effect. From and after the date of this Amendment, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement as amended by this Amendment. 3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the perfoiinance of the obligations they have undertaken pursuant this Amendment. 2 3.5 Invalidity of Amendment. In the event that this Amendment, or any material portion thereof is found by a court of competent jurisdiction to be invalid or unenforceable, Developer shall be required to substitute traditional surety bond(s) in place of the Alternative Security otherwise authorized hereby. 3.6 Counterparts. This Amendment may be executed in counterpart originals, which taken together, shall constitute one and the same instrument. Dated: Dated: CITY OF SAN JACINTO PUENTE HOLDINGS, LLC a California municipal corporation a California limited liability company By: By: Name: Title: Barry McClellan City Manager Date: Date: Attest: Barry McClellan City Clerk Approved as to Form: Best Best & Krieger LLP City Attorney 3 EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY TRACT NO. 31886 4 EXHIBIT "B" PUBLIC IMPROVEMENTS In-Tract Public Improvements [Insert description and dollar amount] Ramona Expressway and Perimeter Improvements [Insert description and dollar amount] 5 EXHIBIT "C" ALTERNATIVE SECURITY [Deed of Trust with Assignment of Rents and Security Agreement to be attached] 6 nature, in and to such property, including the Property, both in law and in equity, including, but not limited to, all deposits made with or other security given by Trustor to utility companies, the proceeds from any or all of the Property, claims or demands with respect to the proceeds of insurance in effect with respect thereto, which Trustor now has or may hereafter acquire, any and all awards made for the taking by eminent domain or by any proceeding or purchase in lieu thereof of the whole or any part of such property, including without limitation, any awards resulting from a change of grade of streets and awards for severance damages to the extent Beneficiary has an interest in such awards for taking as provided in Section 4.1 herein; and All of the foregoing is herein referred to as the "Security", to have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever. FOR THE PURPOSE OF SECURING: Payment of just indebtedness of Trustor to Beneficiary as set forth in the Note (defined in Article 1 below) until paid or cancelled. Said principal and other payments shall be due and payable as provided in the Note. Said Note and all its terms are incorporated herein by reference, and this conveyance shall secure any and all extensions thereof, however evidenced; and Payment of any sums advanced by Beneficiary to protect the Security pursuant to the terms and provisions of this Deed of Trust following a breach of Trustor's obligation to advance said sums and the expiration of any applicable cure period, with interest thereon as provided herein; and Performance of every obligation, covenant or agreement of Trustor's contained herein and in the Security Documents (defined in Section 1.2 below). AND TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR COVENANTS AND AGREES• Article 1 DEFINITIONS In addition to the terms defined elsewhere in this Deed of Trust, the following Waits shall have the following meanings in this Deed of Trust: 1.1 The term "Security Documents" means this Deed of Trust, the Note, and any other debt, loan or security instruments between Trustor and the Beneficiary relating to the Property. 1.2 The term "Note" means the Subdivision Improvement Security Agreement, Tract 31886 in the principal amount of Dollars ($Amount in numbers here) of even date herewith executed by the Trustor in favor of the Beneficiary, the payment of which is secured by this Deed of Trust. (A copy of the Note is on file with the Beneficiary and terms and provisions of the Note are incorporated herein by reference.). Page 2 of 21 1.3 The term "Principal" means the amount required to be paid under the Note. 1.4 The term "Security" means the security interest created pursuant to the Security Documents. 1.5 The term "First Lien Deed of Trust" means that Deed of Trust executed by the Trustor in connection with a loan made to the Trustor by [Name of Bank Here] and recorded in the Office of the County Recorder, Riverside County, as Instrument No. [Ins. Number here]. 1.6 The term "First Lien Lender" shall mean the owner of the beneficial interest under the First Lien Deed of Trust including all successors and assigns of the First Lien Lender. Article 2 MAINTENANCE AND MODIFICATION OF THE PROPERTY AND SECURITY 2.1 Maintenance and Modification of the Property by Trustor. The Trustor agrees that at all times prior to full payment of the sum owed under the Note, the Trustor will, at the Trustor's own expense, maintain, preserve and keep the Security or cause the Security to be maintained and preserved in good condition. The Trustor will from time to time make or cause to be made all repairs, replacements and renewals deemed proper and necessary by it. The Beneficiary shall have no responsibility in any of these matters or for the making of improvements or additions to the Security. Trustor agrees to pay fully and discharge (or cause to be paid fully and discharged) all claims for labor done and for material and services furnished in connection with the Security, diligently to file or procure the filing of a valid notice of cessation upon the event of a cessation of labor on the work or construction on the Security for a continuous period of thirty (30) days or more, and to take all other reasonable steps to forestall the assertion of claims of lien against the Security of any part thereof. Trustor irrevocably appoints, designates and authorizes Beneficiary as its agent (said agency being coupled with an interest) with the authority, but without any obligation, to file for record any notices of completion or cessation of labor or any other notice that Beneficiary deems necessary or desirable to protect its interest in and to the Security or the Security Documents; provided, however, that Beneficiary shall exercise its rights as agent of Trustor only in the event that Trustor shall fail to take, or shall fail to diligently continue to take, those actions as hereinbefore provided. Upon demand by Beneficiary, Trustor shall make or cause to be made such demands or claims as Beneficiary shall specify upon laborers, materialmen, subcontractors or other persons who have furnished or claim to have furnished labor, services or materials in connection with the Security. Nothing herein contained shall require Trustor to pay any claims for labor, materials or services which Trustor in good faith disputes and is diligently contesting provided that Trustor shall, within thirty (30) days after the filing of any claim of lien, record in the Office of the Recorder of Riverside County, a surety bond in an amount 1 and 1/2 times the amount of such claim item to protect against a claim of lien. Page 3 of 21 2.2 Granting of Easements. Trustor may not grant easements, licenses, rights-of-way or other rights or privileges in the nature of easements with respect to any property or rights included in the Security which would impair Beneficiary's Security. 2.3 Agreement to be Bound by Terms and Provisions of Recorded Fictitious Deed of Trust. To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the tetras and provisions set forth in subdivision A of that certain Fictitious Deed of Trust referenced herein, and the parties mutually agree to be bound by all of the provisions set forth in subdivision B of that certain Fictitious Deed of Trust recorded in the book 3778 and page 347 of Official Records in the Office of the County recorder of the County of Riverside, provided however that if any provisions of said Fictitious Deed of Trust conflict with the provisions of this Deed of Trust, the provisions in this Deed of Trust shall control. Said agreements, terms and provisions contained in said subdivision A and B, (identical in all counties and printed for information purposes, but not recorded, as Exhibit B hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maximum allowed by laws. The foregoing assignment of rents is absolute unless initialed here, in which case, the assignment serves as additional security. The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to it at this address hereinbefore set forth. Article 3 TAXES AND INSURANCE; ADVANCES 3.1 Taxes, Other Governmental Charges and Utility Charges. Trustor shall pay, or cause to be paid, at least fifteen (15) days prior to the date of delinquency, all taxes, assessments, charges and levies imposed by any public authority or utility company which are or may become a lien affecting the Security or any part thereof; provided, however, that Trustor shall not be required to pay and discharge any such tax, assessment, charge or levy so long as (a) the legality thereof shall be promptly and actively contested in good faith and by appropriate proceedings, and (b) Trustor maintains reserves adequate to pay any liabilities contested pursuant to this Section 3.1. With respect to taxes, special assessments or other similar governmental charges, Trustor shall pay such amount in full prior to the attachment of any lien therefor on any part of the Security; provided, however, if such taxes, assessments or charges may be paid in installments, Trustor may pay in such installments. Except as provided in clause (b) of the first sentence of this paragraph, the provisions of this Section 3.1 shall not be construed to require that Trustor maintains a reserve account, escrow account, impound account or other similar account for the payment of future taxes, assessments. charges and levies. Page 4 of 21 In the event that Trustor shall fail to pay any of the foregoing items required by this Section to be paid by Trustor, Beneficiary may (but shall be under no obligation to) pay the same, after the Beneficiary has notified the Trustor of such failure to pay and the Trustor fails to fully pay such items within seven (7) business days after receipt of such notice. Any amount so advanced therefor by Beneficiary, together with interest thereon from the date of such advance at the maximum rate permitted by law, shall become an additional obligation of Trustor to the Beneficiary and shall be secured hereby, and Trustor agrees to pay all such amounts. 3.2 Provisions Respecting Insurance. Trustor agrees to provide insurance conforming in all respects to that required under the Security Documents at all times until all amounts secured by this Deed of Trust have been paid and all other obligations secured hereunder fulfilled, and this Deed of Trust reconveyed. All such insurance policies and coverages shall be maintained at Trustor's sole cost and expense. Certificates of insurance for all of the above insurance policies, showing the same to be in full force and effect, shall be delivered to the Beneficiary upon demand therefor at any time prior to the Beneficiary's receipt of the entire Principal and all amounts secured by this Deed of Trust. 3.3 Advances. In the event the Trustor shall fail to maintain the full insurance coverage required by the Security Documents and this Deed of Trust or shall fail to keep the Security in accordance with the Security Documents, the Beneficiary, after at least seven (7) days prior notice to Beneficiary, may (but shall be under no obligation to) take out the required policies of insurance and pay the premiums on the same or may make such repairs or replacements as are necessary and provide for payment thereof; and all amounts so advanced therefor by the Beneficiary shall become an additional obligation of the Trustor to the Beneficiary (together with interest as set forth below) and shall be secured hereby, which amounts the Trustor agrees to pay on the demand of the Beneficiary, and if not so paid, shall bear interest from the date of the advance at the lesser of ten percent (10%) per annum or the maximum rate permitted by law. Article 4 DAMAGE, DESTRUCTION OR CONDEMNATION 4.1 Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (1) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (2) any damage to or destruction of the Property or in any part thereof by insured casualty, and (3) any other injury or damage to all or any part of the Property ("Funds") are hereby assigned to and shall be paid to the Beneficiary by a check made payable to the Beneficiary. The Beneficiary is authorized and empowered (but not required) to collect and receive any funds and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Beneficiary shall determine at its sole option. The Beneficiary shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such Page 5 of 21 insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Beneficiary may be released to Trustor upon such conditions as the Beneficiary may impose for its disposition. Application of all or any part of the Funds collected and received by the Beneficiary or the release thereof shall not cure or waive any default under this Deed of Trust. Article 5 AGREEMENTS AFFECTING THE PROPERTY; FURTHER ASSURANCES AND SECURITY; PAYMENT OF PRINCIPAL AND INTEREST 5.1 Further Assurances. Trustor covenants and agrees that Trustor has the right to grant and convey the Security, that other than this Deed of Trust, the Security is encumbered only by: (a) the First Lien Deed of Trust, and (b) the Note. The Trustor agrees to warrant and defend generally the title to the Security against all claims and demands, subject to any declarations, easements or restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring the Beneficiary's interest in the Security. 5.2 Protection of the Beneficiary's Security. If the Trustor fails to perform the covenants and agreements contained in this Deed of Trust or if any action or proceeding is commenced which materially affects the Beneficiary's interest in the Security, including, but not limited to, default under the Deed of Trust securing the First Lien Note, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the Beneficiary, at the Beneficiary's option, upon notice to the Trustor, may make such appearances, disburse such sums and take such action as it determines necessary to protect the Beneficiary's interest, including, but not limited to, disbursement of reasonable attorneys' fees and entry upon the Security to make repairs. Any amounts disbursed by the Beneficiary pursuant to this Paragraph, with interest thereon, will become an indebtedness of the Trustor secured by this Deed of Trust. Unless the Trustor and the Beneficiary agree to other terms of payment, such amount will be payable upon notice from the Beneficiary to the Trustor requesting payment thereof, and will bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Agency Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts will bear interest at the highest rate permissible under applicable law. Nothing contained in this Paragraph will require the Beneficiary to insure any expense or take any action hereunder. 5.3 Grant of Security Interest; Fixture Filing; Additional Filings. Trustor hereby grants to Beneficiary a security interest in goods that are or are to become fixtures (as that term is defined in Section 9102(a)(41) of the California Uniform Commercial Code as in effect from time to time) and all other items included among the Property now owned or Page 6 of 21 hereafter acquired by Trustor in which a security interest may be granted pursuant to the California Uniform Commercial Code as in effect from time to time. Beneficiary shall have all of the rights and remedies of a secured party under the California Uniform Commercial Code, as in effect from time to time as well as all other rights and remedies available at law or in equity. This Deed of Trust also constitutes and is also filed as a fixture filing under Section 9502 of the California Uniform Commercial Code as in effect from time to time. Certain of the Property consists of goods that are or are to become fixtures upon the Property, and this Deed of Trust is to be recorded in the Official Records of the County in which the Property is located. This Deed of Trust shall remain in effect as a fixture filing until released or satisfied of record or its effectiveness otherwise terminates as to the Property. Upon demand, Trustor hereby agrees to execute and deliver, and hereby irrevocably constitutes and appoints Beneficiary as Trustor's attorney-in-fact to execute, deliver and, as appropriate, file and/or record with the appropriate office in all appropriate jurisdictions such security agreements, financing statements, continuation statements and other instruments as Beneficiary may request or require in order to impose, protect, perfect or continue the perfection of the lien or security interest granted hereby. 5.4 Other Agreements Affecting Property. The Trustor shall duly and punctually perform all terms. covenants, conditions and agreements binding upon it under the Security Documents and any other agreement of any nature whatsoever now or hereafter involving or affecting the Security or any part thereof 5.5 Agreement to Pay Attorneys' Fees and Expenses. In the event of any Event of Default (as defined below) hereunder, and if the Beneficiary should employ attorneys or incur other expenses for the collection of amounts due or the enforcement of performance or observance of an obligation or agreement on the part of the Trustor in this Deed of Trust, the Trustor agrees that he will, on demand therefor, pay to the Beneficiary the reasonable fees of such attorneys and such other reasonable expenses so incurred by the Beneficiary; and any such amounts paid by the Beneficiary shall be added to the indebtedness secured by the lien of this Deed of Trust, and shall bear interest from the date such expenses are incurred at the lesser of ten percent (10%) per annum or the maximum rate permitted by law. 5.6 Payment of the Principal. The Trustor shall pay to the Beneficiary the Principal and any other payments as set forth in the Note in the amounts and by the times set out therein. Page 7 of 21 5.7 Inspection of the Security. At any and all reasonable times upon seventy-two (72) hours notice, the Beneficiary and its duly authorized agents, attorneys, experts, engineers, accountants and representatives, shall have the right, without payment of charges or fees, to inspect the Security. 5.8 Nondiscrimination. The Trustor herein covenants by and for itself, its heirs, executors. administrators, and assigns, and all persons claiming under or through it, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, age, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Security, nor shall the Trustor itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Security. The foregoing covenants shall run with the land. Article 6 EVENTS OF DEFAULT AND REMEDIES 6.1 Events of Default. The following shall constitute Events of Default following the expiration of any applicable notice and cure periods: (1) failure to observe or perform any of Trustor's covenants, agreements or obligations under the Security Documents; or (2) failure to make any payment or perform any of Trustor's other covenants, agreements, or obligations under any other debt instruments or regulatory agreement secured by the Property, including but not limited to the First Lien Deed of Trust, which default shall not be cured within the times and in the manner provided therein. 6.2 Acceleration of Maturity. If an Event of Default shall have occurred and be continuing, then at the option of the Beneficiary, the amount of any payment related to the Event of Default and the unpaid Principal of the Note shall immediately become due and payable, upon written notice by the Beneficiary to the Trustor (or automatically where so specified in the Security Documents), and no omission on the part of the Beneficiary to exercise such option when entitled to do so shall be construed as a waiver of such right. 6.3 The Beneficiary's Right to Enter and Take Possession. If an Event of Default shall have occurred and be continuing, the Beneficiary may: (a) Either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to Page 8 of 21 preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any Event of Default or Notice of Default (as defined below) hereunder or invalidate any act done in response to such Default or pursuant to such Notice of Default and, notwithstanding the continuance in possession of the Security, Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any Event of Default, including the right to exercise the power of sale; (b) Commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (c) Deliver to Trustee a written declaration of default and demand for sale, and a written notice of default and election to cause Trustor's interest in the Security to be sold ("Notice of Default and Election to Sell"), which notice Trustee or Beneficiary shall cause to be duly filed for record in the Official Records of Riverside County; or (d) Exercise all other rights and remedies provided herein, in the instruments by which the Trustor acquires title to any Security, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or provided by law. Should the Beneficiary elect to foreclose by exercise of the power of sale herein contained, the Beneficiary shall give notice to the Trustee (the "Notice of Sale") and shall deposit with Trustee this Deed of Trust which is secured hereby (and the deposit of which shall be deemed to constitute evidence that the unpaid principal amount of the Note is immediately due and payable), and such receipts and evidence of any expenditures made that are additionally secured hereby as Trustee may require. Upon receipt of such notice from the Beneficiary, Trustee shall cause to be recorded, published and delivered to Trustor such Notice of Default and Election to Sell as then required by law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time as may then be required by law and after recordation of such Notice of Default and Election to Sell and after Notice of Sale having been given as required by law, sell the Security, at the time and place of sale fixed by it in said Notice of Sale, whether as a whole or in separate lots or parcels or items as Trustee shall deem expedient and in such order as it may determine unless specified otherwise by the Trustor according to California Civil Code Section 2924g(b), or at Beneficiary's sole discretion as otherwise provided by state law, at public auction to the highest bidder, for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to such purchaser or purchasers thereof its good and sufficient deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed or any matters of facts shall be conclusive proof of the truthfulness thereof. Any person, including, without limitation, Trustor, Trustee or Beneficiary, may purchase at such sale, and Trustor hereby covenants to warrant and defend the title of such purchaser or purchasers. After deducting all reasonable costs, fees and expenses of Trustee, including costs of evidence of title in connection with such sale, Trustee shall apply the proceeds of sale to payment of: (i) the unpaid Principal amount of the Note; (ii) all other amounts owed to Beneficiary under the Security Documents; (iii) all other sums then secured hereby; and (iv) the remainder, if any, to Page 9 of 21 Trustor. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time thereafter, and without further notice make such sale at the time fixed by the last postponement, or may, in its discretion, give a new Notice of Sale. 6.4 Receiver. If an Event of Default shall have occurred and be continuing, Beneficiary, as a matter of right and without further notice to Trustor or anyone claiming under the Security, and without regard to the then value of the Security or the interest of Trustor therein, shall have the right to apply to any court having jurisdiction to appoint a receiver or receivers of the Security (or a part thereof), and Trustor hereby irrevocably consents to such appointment and waives further notice of any application therefor. Any such receiver or receivers shall have all the usual powers and duties of receivers in like or similar cases, and all the powers and duties of Beneficiary in case of entry as provided herein, and shall continue as such and exercise all such powers until the date of confirmation of sale of the Security, unless such receivership is sooner terminated. 6.5 Remedies Cumulative. No right, power or remedy conferred upon or reserved to the Beneficiary by this Deed of Trust is intended to be exclusive of any other right, power or remedy, but each and every such right, power and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy given hereunder or now or hereafter existing at law or in equity. 6.6 No Waiver. No delay or omission of the Beneficiary to exercise any right, power or remedy accruing upon any Event of Default shall exhaust or impair any such right, power or remedy, or shall be construed to be a waiver of any such Event of Default or acquiescence therein; and every right, power and remedy given by this Deed of Trust to the Beneficiary may be exercised from time to time and as often as may be deemed expeditious by the Beneficiary. Beneficiary's express or implied consent to breach, or waiver of. any obligation of the Trustor hereunder shall not be deemed or construed to be a consent to any subsequent breach, or further waiver, of such obligation or of any other obligations of the Trustor hereunder. Failure on the part of the Beneficiary to complain of any act or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Beneficiary of its right hereunder or impair any rights, power or remedies consequent on any Event of Default by the Trustor. If the Beneficiary (i) grants forbearance or an extension of time for the payment of any sums secured hereby, (ii) takes other or additional security or the payment of any sums secured hereby, (iii) waives or does not exercise any right granted in the Security Documents, (iv) releases any part of the Security from the lien of this Deed of Trust, or otherwise changes any of the tern's, covenants, conditions or agreements in the Security Documents, (v) consents to the granting of any easement or other right affecting the Security, or (iv) makes or consents to any agreement subordinating the lien hereof, any such act or omission shall not release, discharge, modify, Page 10 of 21 change or affect the original liability under this Deed of Trust. or any other obligation of the Trustor or any subsequent purchaser of the Security or any part thereof or any maker, co-signer, endorser, surety or guarantor (unless expressly released); nor shall any such act or omission preclude the Beneficiary from exercising any right, power or privilege herein granted or intended to be granted in any Event of Default then made or of any subsequent Event of Default, nor, except as otherwise expressly provided in an instrument or instruments executed by the Beneficiary shall the lien of this Deed of Trust be altered thereby. 6.7 Suits to Protect the Security. The Beneficiary shall have power to (a) institute and maintain such suits and proceedings as it may deem expedient to prevent any impairment of the Security and the rights of the Beneficiary as may be unlawful or any violation of this Deed of Trust, (b) preserve or protect its interest (as described in this Deed of Trust) in the Security, and (c) restrain the enforcement of or compliance with any legislation or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement for compliance with such enactment, rule or order would impair the Security thereunder or be prejudicial to the interest of the Beneficiary. 6.8 Trustee May File Proofs of Claim. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting the Trustor, its creditors or its property, the Beneficiary, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of the Beneficiary allowed in such proceedings and for any additional amount which may become due and payable by the Trustor hereunder after such date. 6.9 Waiver. The Trustor waives presentment, demand for payment, notice of dishonor, notice of protest and nonpayment, protest, notice of interest on interest and late charges, and diligence in taking any action to collect any sums owing under the Note or in proceedings against the Security, in connection with the delivery, acceptance, performance, default, endorsement or guaranty of this Deed of Trust. Article 7 MISCELLANEOUS 7.1 Amendments. This instrument cannot be waived, changed, discharged or terminated orally, but only by an instrument in writing signed by Beneficiary and Trustor. 7.2 Reconveyance by Trustee. Upon written request of Beneficiary stating that all sums secured hereby have been paid or forgiven, and upon surrender of this Deed of Trust to Trustee for cancellation and retention, and upon payment by Trustor of Trustee's reasonable fees. Trustee shall reconvey the Security to Page!! of 21 Trustor, or to the person or persons legally entitled thereto. 7.3 Notices. If at any time after the execution of this Deed of Trust it shall become necessary or convenient for one of the parties hereto to serve any notice, demand or communication upon the other party, such notice, demand or communication shall be in writing and shall be served personally or by depositing the same in the registered United States mail, return receipt requested, postage prepaid and (1) if intended for Beneficiary shall be addressed to: City of San Jacinto 595 S. San Jacinto Ave. Bldg A San Jacinto, Ca. 92583 Attn: Tim Hults, Assistant City Manager with a copy to: City of San Jacinto 595 S. San Jacinto Ave. San Jacinto, Ca. 92583 Attn: City Attorney and (2) if intended for Trustor shall be addressed to: Puente Holdings LLC 6055 Abbottswood Row La Jolla, Ca. 92037 Attn: Steve Slagter Any notice, demand or communication shall be deemed given, received, made or communicated on the date personal delivery is affected or, if mailed in the manner herein specified, on the delivery date or date delivery is refused by the addressee, as shown on the return receipt. Either party may change its address at any time by giving written notice of such change to Beneficiary or Trustor as the case may be, in the manner provided herein, at least ten (10) days prior to the date such change is desired to be effective. 7.4 Successors and Joint Trustors. Where an obligation is created herein binding upon Trustor, the obligation shall also apply to and bind any transferee or successors in interest. Where the terms of the Deed of Trust have the effect of creating an obligation of the Trustor and a transferee, such obligation shall be deemed to be a joint and several obligation of the Trustor and such transferee. All obligations of Trustor shall be deemed to be a joint and several obligation of each and every person comprising Trustor. 7.5 Captions. Page 12 of 21 The captions or headings at the beginning of each or any Section hereof are for the convenience of the parties and are not a part of this Deed of Trust. Page 13 of 21 7.6 Invalidity of Certain Provisions. Every provision of this Deed of Trust is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever by a court or other body of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable. If the lien of this Deed of Trust is invalid or unenforceable as to any part of the debt, or if the lien is invalid or unenforceable as to any part of the Security, the unsecured or partially secured portion of the debt, and all payments made on the debt, whether voluntary or under foreclosure or other enforcement action or procedure, shall be considered to have been first paid or applied to the full payment of that portion of the debt which is not secured or partially secured by the lien of this Deed of Trust. 7.7 Governing Law. This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California. 7.8 Gender and Number. In this Deed of Trust the singular shall include the plural and the masculine shall include the feminine and neuter and vice versa, if the context so requires. 7.9 Deed of Trust, Mortgage. Any reference in this Deed of Trust to a mortgage shall also refer to a deed of trust and any reference to a deed of trust shall also refer to a mortgage. 7.10 Actions. Trustor agrees to appear in and defend any action or proceeding purporting to affect the Security. 7.11 Substitution of Trustee. Beneficiary may from time to time substitute a successor or successors to any Trustee named herein or acting hereunder to execute this Trust. Upon such appointment, and without conveyance to the successor trustee, the latter shall be vested with all title, powers, and duties conferred upon any Trustee herein named or acting hereunder. Each such appointment and substitution shall be made by written instrument executed by Beneficiary, containing reference to this Deed of Trust and its place of record, which, when duly recorded in the proper office of the county or counties in which the Property is situated, shall be conclusive proof of proper appointment of the successor trustee. 7.12 Statute of Limitations. The pleading of any statute of limitations as a defense to any and all obligations secured by this Deed of Trust is hereby waived to the full extent permissible by law. Page 14 of 21 7.13 Acceptance by Trustee. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made public record as provided by law. Except as otherwise provided by law the Trustee is not obligated to notify any party hereto of pending sale under this Deed of Trust or of any action of proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day and year first above written. TRUSTOR: By: Name: Position: Page 15 of 21 STATE OF CALIFORNIA ) SS. COUNTY OF RIVERSIDE On , before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/it/they executed the same in his/her/its/their authorized capacity(ies), and that by his/her/its/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Page 16 of 21 EXHIBIT A (Legal Description) The land is situated in the State of California, City of San Jacinto, County of Riverside, and is described as follows: Page 17 of 21 DO NOT RECORD Exhibit B The following is a copy of Subdivision A and B of the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set forth at length therein. A. To protect the security of this Deed of Trust, Trustor agrees: (1) To keep said property in good condition and repair not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon, not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. (4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof; which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay its reasonable fees. Page 18 of 21 (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: (1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such moneys received by it in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. (2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. (3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plate thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof. (4) That upon written request of beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then hereunder. The recitals in such reconveyance of any matter or facts shall be conclusive proof of the truthfulness thereof The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto." (5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuances of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof in its own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Beneficiary may deteunine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (6) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby Page 19 of 21 immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale, Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof Any person. including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the persons legally entitled thereto. (7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. (8) That this Deed applies to, insures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledges, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. (9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. Page 20 of 21 REQUEST FOR FULL RECONVEYANCE TO [trustee], TRUSTEE: The undersigned is the legal owner and holder of the note or notes, and of all other indebtedness secured by the foregoing Deed of Trust. Said note or notes, together with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same. Dated Signature must be notarized Please mail Deed of Trust, Note and Reconveyance to Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. Page 21 of 21 AGENDA ITEM 5 11 November 5, 2009 TO: The Honorable Mayor and City Council FROM: Asst. City Manager and City Attorney SUBJECT: Amendment to Subdivision Improvement Agreement re Improvement Security (Latham Management and Consulting Service, Inc., a California corporation— Tract 32053-1) RECOMMENDATION: Consider, discuss and approve Amendment to Subdivision Improvement Agreement with Latham Management and Consulting Service, Inc. ("Latham"). Authorize execution of Agreement and related document, in substantially the form attached, with any minor revisions acceptable to the City Manager and City Attorney. BACKGROUND: As a result of the severe economic downturn, especially in the housing market, the City of San Jacinto (along with a number of other jurisdictions) has been approached by subdividers seeking relief from the cost of bond premiums associated with their subdivision improvement agreements. The California Subdivision Map Act (Gov. Code §§ 66410 et seq.) (the "Act") allows subdividers to obtain final subdivision maps prior to the time they install all of the required public improvements (i.e., streets, curbs, gutters, etc.), but only if the subdivider agrees, in writing to install the public improvements within a certain time period. The Act requires that, if such a "subdivision improvement agreement" is approved by the City, the subdivider must post security, in a form approved by the City, to ensure the full performance of that obligation to install the public improvements. The Act specifies what types of security may be accepted by the City. By far, the most common security is a traditional surety bond. However, the Act also permits the following types of security: • A deposit, either with the city or a responsible escrow agent or trust company, at the option of the city, of money or negotiable bonds of the kind approved for securing deposits of public moneys. Page 1 of 3 • An instrument of credit from an agency of the state, federal, or local government when any agency of the state, federal, or local government provides at least 20 percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment, or a letter of credit issued by such a financial institution. • A lien upon the property to be divided, created by contract between the owner and the city , if the city finds that it would not be in the public interest to require the installation of the required improvement sooner than two years after the recordation of the map. • Any form of security, including security interests in real property, which is acceptable to the city and specified by ordinance thereof. In this case, the subdivider has proposed a deed of trust to be posted in lieu of the bonds for the "in-tract" improvements, including the interior park. The Main Street and Camino Los Banos and other perimeter improvements work would still be secured by traditional surety bonds. If the City were to accept a deed of trust against the subdivided property, in the event of a default by the subdivider, in order to act on the security, the City would have to notify the subdivider of the default, provide an adequate opportunity for the subdivider to cure, and if the subdivider fails to do so, file a court action to foreclose on the deed of trust. This is in contrast to a situation where the subdivision agreement is secured by a bond. In that situation, the City would have to notify the surety of the default, allow the surety to perform on behalf of the subdivider, and then the City would have to file a court action against the subdivider and surety. Both situations would likely involve fairly substantial legal expense. The proposed agreement with Latham provides that Latham can post a deed of trust in lieu of the bonds that are posted for the in-tract improvements, including the interior park. The Main Street and Camino Los Banos and other perimeter improvements work would still be secured by traditional surety bonds. In addition, City staff recommends that this subdivider be required to pay to the City $25,000 per year for the City's administration and the risk that is involved to the City in substituting the security, since this is the amount that the subdivider of another tract has agreed to. ALTERNATIVES: 1) Discuss and approve the accompanying Amendment to Subdivision Improvement Agreement. 2) Discuss and direct City staff to bring back a modified Amendment. 3) Take no action. Page 2 of 3 BUDGETARY IMPACT: The Council's discussion of this topic and approval of this agreement is not likely to have any significant budgetary impact. However, City staff recommends that the subdivider be required to pay the City $25,000 per year for this amendment. Attachments: Amendment to Subdivision Improvement Agreement Page 3 of 3 RECORDING REQUESTED BY: WHEN RECORDED RETURN TO: CITY OF SAN JACINTO 595 S. SAN JACINTO AVE. SAN JACINTO, CA 92583 ATTN: CITY CLERK SPACE ABOVE THIS LINE FOR RECORDER'S USE Exempt from recording fee, per Government Code Section 6103 CITY OF SAN JACINTO, CALIFORNIA By: City Clerk AMENDMENT TO THE SUBDIVISION IMPROVEMENT AGREEMENT FINAL TRACT MAP 32053-1 between THE CITY OF SAN JACINTO a California municipal corporation AND LATHAM MANAGEMENT AND CONSULTING SERVICE, INC. a California corporation AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT FOR FINAL TRACT MAP 32053-1 Parties and Date. This Amendment to the Subdivision Improvement Agreement for Final Tract Map 32053-1 ("Amendment") is made and entered is as of this day of , 2009, by and between the City of San Jacinto, a municipal organization organized under the laws of the State of California, with its principal place of business at 595 S. San Jacinto Avenue, San Jacinto, CA 92583 ("City") and Latham Management and Consulting Service, Inc., a California corporation, with its principal place of business at 6800 Indiana Ave Ste 130, Riverside CA 92506 ("Developer"). City and Developer are sometimes individually referred to as "Party" and collectively as "Parties". 2. Recitals. 2.1 Agreement. The City has conditioned the approval of the final map for Tract No. 32053-1, real property located within City, a legal description of which is attached hereto as Exhibit "A" and incorporated herein by reference, on the timely construction of completion of public improvements as set forth in the Subdivision Improvement Agreement for Final Tract Map 32053-1 dated , 20 ("Agreement"). Developer is the successor in interest to the Agreement, by reason of Developer's acquisition of the property subject to the Agreement. 2.2 Amendment Purpose. The City and Developer desire to amend the aforesaid Agreement to provide for the substitution of security, as required by the Agreement and the California Subdivision Map Act (Gov. Code §§ 66410 et seq.) (the "Act"). 2.3 Amendment Authority. Section 66499(a) of the Government Code (contained in the Act) authorizes, but does not require, the City to accept, in lieu of a traditional surety bond, a deed of trust, secured by the property to be divided, in order to secure the performance of the Developer's obligations under the Agreement. 2.4 Request and Approval of City Council. Developer has made a written request to the City of San Jacinto City Council ("City Council") for its approval of an alternative form of security, in accordance with the provisions of the Act. The City Council finds that it would not be in the public interest to require the installation of certain in-tract public improvements sooner than two years after the recordation of the map. 3. Terms. 3.1 New Section 13.5. A new Section 13.5 of the Agreement is hereby added to read as follows: "13.5 Alternative Security; Deed of Trust. Developer may, at its election, substitute alternative security in the form of a deed of trust, substantially in the form attached hereto as Exhibit "C" ("Alternative Security"), to secure the performance of the Developer's obligations to satisfactorily complete all of the in- tract Public Improvements, not including the Main Street and Camino Los Banos and other perimeter improvements, as set forth in Exhibit "B" (the "In-Tract Public Improvements"). The Developer's obligation to satisfactorily complete the Main Street and Camino Los Banos and other perimeter improvements (as set forth in Exhibit "B") shall be secured by the Security set forth in Section 13.0 through 13.4 hereof and elsewhere in this Agreement. City shall not be required to release or reduce any surety bond for any of the In-Tract Public Improvements unless and until Developer has provided fully executed and recordable forms of Alternative Security, in a form and substance required hereby, and then only to secure the performance of the obligations set forth herein. The amount of any Security or Alternative shall be based on the City Engineer's approximation of the actual cost to construct the applicable Public Improvements, including the replacement cost for all landscaping ("Estimated Costs"). If City determines, in its sole and absolute discretion, that the Estimated Costs have changed, Developer shall adjust the Security, Alternative Security, or both, in the amount requested by City. Developer's compliance with this provision (Section 13.0 et seq.) shall in no way limit or modify Developer's indemnification obligation provided in Section 16.0 of this Agreement. No Entitlement, as that term is defined below, associated with the Property shall be issued by the City unless and until the Alternative Security is replaced with a traditional surety bond, in a form and amount approved by the City Council." 3.2 Amendment Fee. Developer shall pay to the City of San Jacinto a fee equaling Twenty Five Thousand Dollars ($25,000) prior to the City's execution of this Agreement, and on each anniversary of said date, until the Security provided in Section 3.1 hereof is substituted with security in the form of surety bonds acceptable to the City. In the event Developer fails to pay any such obligation when it becomes due, the amount due and owing shall accrue interest, to the benefit of the City, at the maximum rate established by law, or 10% per annum, whichever is higher. The fee may be used by the City for any lawful purpose. In addition to any other remedies that may be available to the City to collect any delinquent amount due under this Agreement, including without limitation, any action of money damages, the City shall be entitled to: (1) add the delinquent amount to the amount secured by the Security; or (2) withhold, without liability on the part of the City, any future entitlements associated with the Property, whether discretionary or ministerial, including, without limitation, any of the following "Entitlements": general plan amendment, zone change, parcel or tract map, variance, conditional use permit, grading permit, building permit, or certificate of occupancy; or (3) exercise the remedies set forth in both (1) and (2) above. 3.3 Continuing Effect of Agreement. Except as amended by this Amendment, all other provisions of the aforementioned Agreement remain in full force and effect. From and after the date of this Amendment, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement as amended by this Amendment. 3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant this Amendment. 2 3.5 Invalidity of Amendment. In the event that this Amendment, or any material portion thereof is found by a court of competent jurisdiction to be invalid or unenforceable, Developer shall be required to substitute traditional surety bond(s) in place of the Alternative Security otherwise authorized hereby. 3.6 Counterparts. This Amendment may be executed in counterpart originals, which taken together, shall constitute one and the same instrument. Dated: Dated: CITY OF SAN JACINTO LATHAM MANAGEMENT AND CONSULTING SERVICE, INC. a California municipal corporation a California corporation By: By: Name: Title: Barry McClellan City Manager Date: Date: Attest: Barry McClellan City Clerk Approved as to Form: Best Best & Krieger LLP City Attorney 3 EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY TRACT NO. 32053-1 4 EXHIBIT "B" PUBLIC IMPROVEMENTS In-Tract Public Improvements [Insert description and dollar amount] Main & Camino Los Banos Perimeter Improvements [Insert description and dollar amount] EXHIBIT "C" ALTERNATIVE SECURITY [Deed of Trust with Assignment of Rents and Security Agreement to be attached] 6 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of San Jacinto 595 S. San Jacinto Ave. San Jacinto, CA 92583 Attn: City Attorney No fee for recording pursuant to Government Code Section 27383 DEED OF TRUST WITH ASSIGNMENT OF RENTS AND SECURITY AGREEMENT (Securing Subdivision Improvements Pursuant to Government Code Section 66499(a)(4)) THIS DEED OF TRUST AND SECURITY AGREEMENT ("Deed of Trust") is made as of this day of , 2009, by and among Latham Management and Consulting Service Inc., a California corporation, ("Trustor") as to its sole and separate property, First American Title Company, a California corporation ("Trustee"), and the City of San Jacinto, a municipal corporation ("Beneficiary"). FOR GOOD AND VALUABLE CONSIDERATION, including the indebtedness herein recited and the trust herein created, the receipt of which is hereby acknowledged, Trustor hereby irrevocably grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit and security of Beneficiary, under and subject to the terms and conditions hereinafter set forth, Trustor's fee interest in the property located in the City of San Jacinto, County of Riverside, State of California, that is described in the attached Exhibit A, incorporated herein by this reference (the "Property"). TOGETHER WITH all interest, estates or other claims, both in law and in equity which Trustor now has or may hereafter acquire in the Property and the rents; TOGETHER WITH all easements, rights-of-way and rights used in connection therewith or as a means of access thereto, including (without limiting the generality of the foregoing) all tenements, hereditaments and appurtenances thereof and thereto; TOGETHER WITH any and all buildings and improvements of every kind and description now or hereafter erected thereon, and all property of the Trustor now or hereafter affixed to the Property; TOGETHER WITH all right, title and interest of Trustor, now owned or hereafter acquired, in and to any land lying within the right-of-way of any street, open or proposed, adjoining the Property, and any and all sidewalks, alleys and strips and areas of land adjacent to or used in connection with the Property; TOGETHER WITH all estate, interest, right, title, other claim or demand, of every nature, in and to such property, including the Property, both in law and in equity, including. but not limited to, all deposits made with or other security given by Trustor to utility companies, the proceeds from any or all of the Property, claims or demands with respect to the proceeds of insurance in effect with respect thereto, which Trustor now has or may hereafter acquire, any and all awards made for the taking by eminent domain or by any proceeding or purchase in lieu thereof of the whole or any part of such property, including without limitation, any awards resulting from a change of grade of streets and awards for severance damages to the extent Beneficiary has an interest in such awards for taking as provided in Section 4.1 herein; and All of the foregoing is herein referred to as the "Security", to have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever. FOR THE PURPOSE OF SECURING: Payment of just indebtedness of Trustor to Beneficiary as set forth in the Note (defined in Article 1 below) until paid or cancelled. Said principal and other payments shall be due and payable as provided in the Note. Said Note and all its terms are incorporated herein by reference, and this conveyance shall secure any and all extensions thereof, however evidenced; and Payment of any sums advanced by Beneficiary to protect the Security pursuant to the terms and provisions of this Deed of Trust following a breach of Trustor's obligation to advance said sums and the expiration of any applicable cure period, with interest thereon as provided herein; and Performance of every obligation, covenant or agreement of Trustor's contained herein and in the Security Documents (defined in Section 1.2 below). AND TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR COVENANTS AND AGREES: Article 1 DEFINITIONS In addition to the terms defined elsewhere in this Deed of Trust, the following terms shall have the following meanings in this Deed of Trust: 1.1 The term "Security Documents" means this Deed of Trust, the Note, and any other debt, loan or security instruments between Trustor and the Beneficiary relating to the Property. 1.2 The teiiii "Note" means the Subdivision Improvement Security Agreement, Tract 31886 in the principal amount of Dollars ($Amount in numbers here) of even date herewith executed by the Trustor in favor of the Beneficiary, the payment of which is secured by this Deed of Trust. (A copy of the Note is on file with the Beneficiary and terms and provisions of the Note are incorporated herein by reference.). 1.3 The term "Principal" means the amount required to be paid under the Note. 1.4 The term "Security" means the security interest created pursuant to the Security Documents. 1.5 The term "First Lien Deed of Trust" means that Deed of Trust executed by the Trustor in connection with a loan made to the Trustor by [Name of Bank Here] and recorded in the Office of the County Recorder, Riverside County, as Instrument No. [Ins. Number here]. 1.6 The term "First Lien Lender" shall mean the owner of the beneficial interest under the First Lien Deed of Trust including all successors and assigns of the First Lien Lender. Article 2 MAINTENANCE AND MODIFICATION OF THE PROPERTY AND SECURITY 2.1 Maintenance and Modification of the Property by Trustor. The Trustor agrees that at all times prior to full payment of the sum owed under the Note, the Trustor will, at the Trustor's own expense, maintain, preserve and keep the Security or cause the Security to be maintained and preserved in good condition. The Trustor will from time to time make or cause to be made all repairs, replacements and renewals deemed proper and necessary by it. The Beneficiary shall have no responsibility in any of these matters or for the making of improvements or additions to the Security. Trustor agrees to pay fully and discharge (or cause to be paid fully and discharged) all claims for labor done and for material and services furnished in connection with the Security, diligently to file or procure the filing of a valid notice of cessation upon the event of a cessation of labor on the work or construction on the Security for a continuous period of thirty (30) days or more, and to take all other reasonable steps to forestall the assertion of claims of lien against the Security of any part thereof. Trustor irrevocably appoints, designates and authorizes Beneficiary as its agent (said agency being coupled with an interest) with the authority, but without any obligation, to file for record any notices of completion or cessation of labor or any other notice that Beneficiary deems necessary or desirable to protect its interest in and to the Security or the Security Documents; provided, however, that Beneficiary shall exercise its rights as agent of Trustor only in the event that Trustor shall fail to take, or shall fail to diligently continue to take, those actions as hereinbefore provided. Upon demand by Beneficiary, Trustor shall make or cause to be made such demands or claims as Beneficiary shall specify upon laborers, materialmen, subcontractors or other persons who have furnished or claim to have furnished labor, services or materials in connection with the Security. Nothing herein contained shall require Trustor to pay any claims for labor, materials or services which Trustor in good faith disputes and is diligently contesting provided that Trustor shall, within thirty (30) days after the filing of any claim of lien, record in the Office of the Recorder of Riverside County, a surety bond in an amount 1 and 1/2 times the amount of such claim item to protect against a claim of lien. 2.2 Granting of Easements. Trustor may not grant easements, licenses, rights-of-way or other rights or privileges in the nature of easements with respect to any property or rights included in the Security which would impair Beneficiary's Security. 2.3 Agreement to be Bound by Terms and Provisions of Recorded Fictitious Deed of Trust. To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A of that certain Fictitious Deed of Trust referenced herein, and the parties mutually agree to be bound by all of the provisions set forth in subdivision B of that certain Fictitious Deed of Trust recorded in the book 3778 and page 347 of Official Records in the Office of the County recorder of the County of Riverside, provided however that if any provisions of said Fictitious Deed of Trust conflict with the provisions of this Deed of Trust, the provisions in this Deed of Trust shall control. Said agreements, terms and provisions contained in said subdivision A and B, (identical in all counties and printed for information purposes, but not recorded, as Exhibit B hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maximum allowed by laws. The foregoing assignment of rents is absolute unless initialed here, in which case, the assignment serves as additional security. The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to it at this address hereinbefore set forth. Article 3 TAXES AND INSURANCE; ADVANCES 3.1 Taxes, Other Governmental Charges and Utility Charges. Trustor shall pay, or cause to be paid, at least fifteen (15) days prior to the date of delinquency, all taxes, assessments, charges and levies imposed by any public authority or utility company which are or may become a lien affecting the Security or any part thereof; provided, however, that Trustor shall not be required to pay and discharge any such tax, assessment, charge or levy so long as (a) the legality thereof shall be promptly and actively contested in good faith and by appropriate proceedings, and (b) Trustor maintains reserves adequate to pay any liabilities contested pursuant to this Section 3.1. With respect to taxes, special assessments or other similar governmental charges, Trustor shall pay such amount in full prior to the attachment of any lien therefor on any part of the Security; provided, however, if such taxes, assessments or charges may be paid in installments, Trustor may pay in such installments. Except as provided in clause (b) of the first sentence of this paragraph, the provisions of this Section 3.1 shall not be construed to require that Trustor maintains a reserve account, escrow account, impound account or other similar account for the payment of future taxes, assessments. charges and levies. In the event that Trustor shall fail to pay any of the foregoing items required by this Section to be paid by Trustor, Beneficiary may (but shall be under no obligation to) pay the same, after the Beneficiary has notified the Trustor of such failure to pay and the Trustor fails to fully pay such items within seven (7) business days after receipt of such notice. Any amount so advanced therefor by Beneficiary, together with interest thereon from the date of such advance at the maximum rate permitted by law, shall become an additional obligation of Trustor to the Beneficiary and shall be secured hereby, and Trustor agrees to pay all such amounts. 3.2 Provisions Respecting Insurance. Trustor agrees to provide insurance conforming in all respects to that required under the Security Documents at all times until all amounts secured by this Deed of Trust have been paid and all other obligations secured hereunder fulfilled, and this Deed of Trust reconveyed. All such insurance policies and coverages shall be maintained at Trustor's sole cost and expense. Certificates of insurance for all of the above insurance policies, showing the same to be in full force and effect, shall be delivered to the Beneficiary upon demand therefor at any time prior to the Beneficiary's receipt of the entire Principal and all amounts secured by this Deed of Trust. 3.3 Advances. In the event the Trustor shall fail to maintain the full insurance coverage required by the Security Documents and this Deed of Trust or shall fail to keep the Security in accordance with the Security Documents, the Beneficiary, after at least seven (7) days prior notice to Beneficiary, may (but shall be under no obligation to) take out the required policies of insurance and pay the premiums on the same or may make such repairs or replacements as are necessary and provide for payment thereof; and all amounts so advanced therefor by the Beneficiary shall become an additional obligation of the Trustor to the Beneficiary (together with interest as set forth below) and shall be secured hereby, which amounts the Trustor agrees to pay on the demand of the Beneficiary, and if not so paid, shall bear interest from the date of the advance at the lesser of ten percent (10%) per annum or the maximum rate permitted by law. Article 4 DAMAGE, DESTRUCTION OR CONDEMNATION 4.1 Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (1) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (2) any damage to or destruction of the Property or in any part thereof by insured casualty, and (3) any other injury or damage to all or any part of the Property ("Funds") are hereby assigned to and shall be paid to the Beneficiary by a check made payable to the Beneficiary. The Beneficiary is authorized and empowered (but not required) to collect and receive any funds and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Beneficiary shall determine at its sole option. The Beneficiary shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Beneficiary may be released to Trustor upon such conditions as the Beneficiary may impose for its disposition. Application of all or any part of the Funds collected and received by the Beneficiary or the release thereof shall not cure or waive any default under this Deed of Trust. Article 5 AGREEMENTS AFFECTING THE PROPERTY; FURTHER ASSURANCES AND SECURITY; PAYMENT OF PRINCIPAL AND INTEREST 5.1 Further Assurances. Trustor covenants and agrees that Trustor has the right to grant and convey the Security, that other than this Deed of Trust, the Security is encumbered only by: (a) the First Lien Deed of Trust, and (b) the Note. The Trustor agrees to warrant and defend generally the title to the Security against all claims and demands, subject to any declarations, easements or restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring the Beneficiary's interest in the Security. 5.2 Protection of the Beneficiary's Security. If the Trustor fails to perform the covenants and agreements contained in this Deed of Trust or if any action or proceeding is commenced which materially affects the Beneficiary's interest in the Security, including, but not limited to, default under the Deed of Trust securing the First Lien Note, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the Beneficiary, at the Beneficiary's option, upon notice to the Trustor, may make such appearances, disburse such sums and take such action as it determines necessary to protect the Beneficiary's interest, including, but not limited to, disbursement of reasonable attorneys' fees and entry upon the Security to make repairs. Any amounts disbursed by the Beneficiary pursuant to this Paragraph, with interest thereon, will become an indebtedness of the Trustor secured by this Deed of Trust. Unless the Trustor and the Beneficiary agree to other terms of payment, such amount will be payable upon notice from the Beneficiary to the Trustor requesting payment thereof, and will bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Agency Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts will bear interest at the highest rate permissible under applicable law. Nothing contained in this Paragraph will require the Beneficiary to insure any expense or take any action hereunder. 5.3 Grant of Security Interest; Fixture Filing; Additional Filings. Trustor hereby grants to Beneficiary a security interest in goods that are or are to become fixtures (as that term is defined in Section 9102(a)(41) of the California Uniform Commercial Code as in effect from time to time) and all other items included among the Property now owned or hereafter acquired by Trustor in which a security interest may be granted pursuant to the California Uniform Commercial Code as in effect from time to time. Beneficiary shall have all of the rights and remedies of a secured party under the California Uniform Commercial Code, as in effect from time to time as well as all other rights and remedies available at law or in equity. This Deed of Trust also constitutes and is also filed as a fixture filing under Section 9502 of the California Uniform Commercial Code as in effect from time to time. Certain of the Property consists of goods that are or are to become fixtures upon the Property, and this Deed of Trust is to be recorded in the Official Records of the County in which the Property is located. This Deed of Trust shall remain in effect as a fixture filing until released or satisfied of record or its effectiveness otherwise terminates as to the Property. Upon demand, Trustor hereby agrees to execute and deliver, and hereby irrevocably constitutes and appoints Beneficiary as Trustor's attorney-in-fact to execute, deliver and, as appropriate, file and/or record with the appropriate office in all appropriate jurisdictions such security agreements, financing statements, continuation statements and other instruments as Beneficiary may request or require in order to impose, protect, perfect or continue the perfection of the lien or security interest granted hereby. 5.4 Other Agreements Affecting Property. The Trustor shall duly and punctually perform all terms. covenants, conditions and agreements binding upon it under the Security Documents and any other agreement of any nature whatsoever now or hereafter involving or affecting the Security or any part thereof. 5.5 Agreement to Pay Attorneys' Fees and Expenses. In the event of any Event of Default (as defined below) hereunder, and if the Beneficiary should employ attorneys or incur other expenses for the collection of amounts due or the enforcement of performance or observance of an obligation or agreement on the part of the Trustor in this Deed of Trust, the Trustor agrees that he will, on demand therefor, pay to the Beneficiary the reasonable fees of such attorneys and such other reasonable expenses so incurred by the Beneficiary; and any such amounts paid by the Beneficiary shall be added to the indebtedness secured by the lien of this Deed of Trust, and shall bear interest from the date such expenses are incurred at the lesser of ten percent (10%) per annum or the maximum rate permitted by law. 5.6 Payment of the Principal. The Trustor shall pay to the Beneficiary the Principal and any other payments as set forth in the Note in the amounts and by the times set out therein. 5.7 Inspection of the Security. At any and all reasonable times upon seventy-two (72) hours notice, the Beneficiary and its duly authorized agents, attorneys, experts, engineers, accountants and representatives, shall have the right, without payment of charges or fees, to inspect the Security. 5.8 Nondiscrimination. The Trustor herein covenants by and for itself, its heirs, executors. administrators, and assigns, and all persons claiming under or through it, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, age, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Security, nor shall the Trustor itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Security. The foregoing covenants shall run with the land. Article 6 EVENTS OF DEFAULT AND REMEDIES 6.1 Events of Default. The following shall constitute Events of Default following the expiration of any applicable notice and cure periods: (1) failure to observe or perform any of Trustor's covenants, agreements or obligations under the Security Documents; or (2) failure to make any payment or perform any of Trustor's other covenants, agreements, or obligations under any other debt instruments or regulatory agreement secured by the Property, including but not limited to the First Lien Deed of Trust, which default shall not be cured within the times and in the manner provided therein. 6.2 Acceleration of Maturity. If an Event of Default shall have occurred and be continuing, then at the option of the Beneficiary, the amount of any payment related to the Event of Default and the unpaid Principal of the Note shall immediately become due and payable, upon written notice by the Beneficiary to the Trustor (or automatically where so specified in the Security Documents), and no omission on the part of the Beneficiary to exercise such option when entitled to do so shall be construed as a waiver of such right. 6.3 The Beneficiary's Right to Enter and Take Possession. If an Event of Default shall have occurred and be continuing, the Beneficiary may: (a) Either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any Event of Default or Notice of Default (as defined below) hereunder or invalidate any act done in response to such Default or pursuant to such Notice of Default and, notwithstanding the continuance in possession of the Security, Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any Event of Default, including the right to exercise the power of sale; (b) Commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (c) Deliver to Trustee a written declaration of default and demand for sale, and a written notice of default and election to cause Trustor's interest in the Security to be sold ("Notice of Default and Election to Sell"), which notice Trustee or Beneficiary shall cause to be duly filed for record in the Official Records of Riverside County; or (d) Exercise all other rights and remedies provided herein, in the instruments by which the Trustor acquires title to any Security, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or provided by law. Should the Beneficiary elect to foreclose by exercise of the power of sale herein contained, the Beneficiary shall give notice to the Trustee (the "Notice of Sale") and shall deposit with Trustee this Deed of Trust which is secured hereby (and the deposit of which shall be deemed to constitute evidence that the unpaid principal amount of the Note is immediately due and payable), and such receipts and evidence of any expenditures made that are additionally secured hereby as Trustee may require. Upon receipt of such notice from the Beneficiary, Trustee shall cause to be recorded, published and delivered to Trustor such Notice of Default and Election to Sell as then required by law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time as may then be required by law and after recordation of such Notice of Default and Election to Sell and after Notice of Sale having been given as required by law, sell the Security, at the time and place of sale fixed by it in said Notice of Sale, whether as a whole or in separate lots or parcels or items as Trustee shall deem expedient and in such order as it may determine unless specified otherwise by the Trustor according to California Civil Code Section 2924g(b), or at Beneficiary's sole discretion as otherwise provided by state law, at public auction to the highest bidder, for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to such purchaser or purchasers thereof its good and sufficient deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed or any matters of facts shall be conclusive proof of the truthfulness thereof Any person, including, without limitation, Trustor, Trustee or Beneficiary, may purchase at such sale, and Trustor hereby covenants to warrant and defend the title of such purchaser or purchasers. After deducting all reasonable costs, fees and expenses of Trustee, including costs of evidence of title in connection with such sale, Trustee shall apply the proceeds of sale to payment of: (i) the unpaid Principal amount of the Note; (ii) all other amounts owed to Beneficiary under the Security Documents; (iii) all other sums then secured hereby; and (iv) the remainder, if any, to Trustor. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time thereafter, and without further notice make such sale at the time fixed by the last postponement, or may, in its discretion, give a new Notice of Sale. 6.4 Receiver. If an Event of Default shall have occurred and be continuing, Beneficiary, as a matter of right and without further notice to Trustor or anyone claiming under the Security, and without regard to the then value of the Security or the interest of Trustor therein, shall have the right to apply to any court having jurisdiction to appoint a receiver or receivers of the Security (or a part thereof), and Trustor hereby irrevocably consents to such appointment and waives further notice of any application therefor. Any such receiver or receivers shall have all the usual powers and duties of receivers in like or similar cases, and all the powers and duties of Beneficiary in case of entry as provided herein, and shall continue as such and exercise all such powers until the date of confirmation of sale of the Security, unless such receivership is sooner terminated. 6.5 Remedies Cumulative. No right, power or remedy conferred upon or reserved to the Beneficiary by this Deed of Trust is intended to be exclusive of any other right, power or remedy, but each and every such right, power and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy given hereunder or now or hereafter existing at law or in equity. 6.6 No Waiver. No delay or omission of the Beneficiary to exercise any right, power or remedy accruing upon any Event of Default shall exhaust or impair any such right, power or remedy, or shall be construed to be a waiver of any such Event of Default or acquiescence therein; and every right, power and remedy given by this Deed of Trust to the Beneficiary may be exercised from time to time and as often as may be deemed expeditious by the Beneficiary. Beneficiary's express or implied consent to breach, or waiver of. any obligation of the Trustor hereunder shall not be deemed or construed to be a consent to any subsequent breach, or further waiver, of such obligation or of any other obligations of the Trustor hereunder. Failure on the part of the Beneficiary to complain of any act or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Beneficiary of its right hereunder or impair any rights, power or remedies consequent on any Event of Default by the Trustor. If the Beneficiary (i) grants forbearance or an extension of time for the payment of any sums secured hereby, (ii) takes other or additional security or the payment of any sums secured hereby, (iii) waives or does not exercise any right granted in the Security Documents, (iv) releases any part of the Security from the lien of this Deed of Trust, or otherwise changes any of the terms, covenants, conditions or agreements in the Security Documents, (v) consents to the granting of any easement or other right affecting the Security, or (iv) makes or consents to any agreement subordinating the lien hereof, any such act or omission shall not release, discharge, modify, change or affect the original liability under this Deed of Trust. or any other obligation of the Trustor or any subsequent purchaser of the Security or any part thereof or any maker, co-signer, endorser, surety or guarantor (unless expressly released); nor shall any such act or omission preclude the Beneficiary from exercising any right, power or privilege herein granted or intended to be granted in any Event of Default then made or of any subsequent Event of Default, nor, except as otherwise expressly provided in an instrument or instruments executed by the Beneficiary shall the lien of this Deed of Trust be altered thereby. 6.7 Suits to Protect the Security. The Beneficiary shall have power to (a) institute and maintain such suits and proceedings as it may deem expedient to prevent any impairment of the Security and the rights of the Beneficiary as may be unlawful or any violation of this Deed of Trust, (b) preserve or protect its interest (as described in this Deed of Trust) in the Security, and (c) restrain the enforcement of or compliance with any legislation or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement for compliance with such enactment, rule or order would impair the Security thereunder or be prejudicial to the interest of the Beneficiary. 6.8 Trustee May File Proofs of Claim. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting the Trustor, its creditors or its property, the Beneficiary, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of the Beneficiary allowed in such proceedings and for any additional amount which may become due and payable by the Trustor hereunder after such date. 6.9 Waiver. The Trustor waives presentment, demand for payment, notice of dishonor, notice of protest and nonpayment, protest, notice of interest on interest and late charges, and diligence in taking any action to collect any sums owing under the Note or in proceedings against the Security, in connection with the delivery, acceptance, performance, default, endorsement or guaranty of this Deed of Trust. Article 7 MISCELLANEOUS 7.1 Amendments. This instrument cannot be waived, changed, discharged or terminated orally, but only by an instrument in writing signed by Beneficiary and Trustor. 7.2 Reconveyance by Trustee. Upon written request of Beneficiary stating that all sums secured hereby have been paid or forgiven, and upon surrender of this Deed of Trust to Trustee for cancellation and retention, and upon payment by Trustor of Trustee's reasonable fees. Trustee shall reconvey the Security to Trustor, or to the person or persons legally entitled thereto. 7.3 Notices. If at any time after the execution of this Deed of Trust it shall become necessary or convenient for one of the parties hereto to serve any notice, demand or communication upon the other party, such notice, demand or communication shall be in writing and shall be served personally or by depositing the same in the registered United States mail, return receipt requested, postage prepaid and (1) if intended for Beneficiary shall be addressed to: City of San Jacinto 595 S. San Jacinto Ave. Bldg A San Jacinto, Ca. 92583 Attn: Tim Hults, Assistant City Manager with a copy to: City of San Jacinto 595 S. San Jacinto Ave. San Jacinto, Ca. 92583 Attn: City Attorney and (2) if intended for Trustor shall be addressed to: Latham Management and Consulting Service Inc. 6800 Indiana Ave Ste 130 Riverside, Ca. 92506 Attn: William E. Thomas Any notice, demand or communication shall be deemed given, received, made or communicated on the date personal delivery is affected or, if mailed in the manner herein specified, on the delivery date or date delivery is refused by the addressee, as shown on the return receipt. Either party may change its address at any time by giving written notice of such change to Beneficiary or Trustor as the case may be, in the manner provided herein, at least ten (10) days prior to the date such change is desired to be effective. 7.4 Successors and Joint Trustors. Where an obligation is created herein binding upon Trustor, the obligation shall also apply to and bind any transferee or successors in interest. Where the terms of the Deed of Trust have the effect of creating an obligation of the Trustor and a transferee, such obligation shall be deemed to be a joint and several obligation of the Trustor and such transferee. All obligations of Trustor shall be deemed to be a joint and several obligation of each and every person comprising Trustor. 7.5 Captions. The captions or headings at the beginning of each or any Section hereof are for the convenience of the parties and are not a part of this Deed of Trust. 7.6 Invalidity of Certain Provisions. Every provision of this Deed of Trust is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever by a court or other body of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable. If the lien of this Deed of Trust is invalid or unenforceable as to any part of the debt, or if the lien is invalid or unenforceable as to any part of the Security, the unsecured or partially secured portion of the debt, and all payments made on the debt, whether voluntary or under foreclosure or other enforcement action or procedure, shall be considered to have been first paid or applied to the full payment of that portion of the debt which is not secured or partially secured by the lien of this Deed of Trust. 7.7 Governing Law. This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California. 7.8 Gender and Number. In this Deed of Trust the singular shall include the plural and the masculine shall include the feminine and neuter and vice versa, if the context so requires. 7.9 Deed of Trust, Mortgage. Any reference in this Deed of Trust to a mortgage shall also refer to a deed of trust and any reference to a deed of trust shall also refer to a mortgage. 7.10 Actions. Trustor agrees to appear in and defend any action or proceeding purporting to affect the Security. 7.11 Substitution of Trustee. Beneficiary may from time to time substitute a successor or successors to any Trustee named herein or acting hereunder to execute this Trust. Upon such appointment, and without conveyance to the successor trustee, the latter shall be vested with all title, powers, and duties conferred upon any Trustee herein named or acting hereunder. Each such appointment and substitution shall be made by written instrument executed by Beneficiary, containing reference to this Deed of Trust and its place of record, which, when duly recorded in the proper office of the county or counties in which the Property is situated, shall be conclusive proof of proper appointment of the successor trustee. 7.12 Statute of Limitations. The pleading of any statute of limitations as a defense to any and all obligations secured by this Deed of Trust is hereby waived to the full extent permissible by law. 7.13 Acceptance by Trustee. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made public record as provided by law. Except as otherwise provided by law the Trustee is not obligated to notify any party hereto of pending sale under this Deed of Trust or of any action of proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day and year first above written. TRUSTOR: By: Name: Position: STATE OF CALIFORNIA ) SS. COUNTY OF RIVERSIDE On , before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/it/they executed the same in his/her/its/their authorized capacity(ies), and that by his/her/its/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. EXHIBIT A (Legal Description) The land is situated in the State of California, City of San Jacinto, County of Riverside, and is described as follows: DO NOT RECORD Exhibit B The following is a copy of Subdivision A and B of the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set forth at length therein. A. To protect the security of this Deed of Trust, Trustor agrees: (1) To keep said property in good condition and repair not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon, not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. (4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay its reasonable fees. (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: (1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such moneys received by it in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. (2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. (3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plate thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof. (4) That upon written request of beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then hereunder. The recitals in such reconveyance of any matter or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto." (5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuances of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in its own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (6) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale, Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person. including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the persons legally entitled thereto. (7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. (8) That this Deed applies to, insures to the benefit of and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledges, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. (9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. REQUEST FOR FULL RECONVEYANCE TO [trustee], TRUSTEE: The undersigned is the legal owner and holder of the note or notes, and of all other indebtedness secured by the foregoing Deed of Trust. Said note or notes, together with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same. Dated Signature must be notarized Please mail Deed of Trust, Note and Reconveyance to Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. All Bikes Welcome all receive a commemora ck to SJC Campus for & Chicken Lunch last served from 8:00 - 9:00 am at MVC Campus Saturday, November 7, 2009 Fiatitarts at 9:00 am from Menifee Valley Campus arid ends at the San Jacinto Campus :5201fre-Registration (Single) S30 Day of the Event (Single) $30 Pre-Registration (Couple) S40 Day of the Event (Couple) Non-riders Lunch is S10.00 r Online at www.msic.edu MSJC MT SAN JACINTO CO LEG Register Online at www.msjc.edu A special event to benefit the MSJC Foundation and its work to provide student scholarships An 88.mile scenic ride through Anza. Aguanga and Garner Valley Community Garden EXCEED (on the corner of Main Street and Camino Los Banos in San Jacinto!) Thanks to a partnership between EXCEED and Lowe's of Hemet, we will be opening a community garden in downtown San Jacinto. Anyone interested can rent a 20X2OFt plot for $25 per year. We will provide access to water, compost, some tools, storage, and occasional gardening classes. This is will be an exciting opportunity to learn new skills, produce food, and meet new people! Plus, it's a great way to save $100's of dollars a year! Come join us to build a Garden!! Saturday, November 14,2009 at 10:00 AM For more information please contact: Mary Morse at EXCEED, 1285 N. Santa Fe, Hemet, CA 92543, (951)766-8659 X 224 , vrctwohip@aol.com Official U.S. Merchant Marine Flag approved by the U.S. Army Institute of Heraldry Information Sheet about Belated Thank You Bills American merunarn marine at vvar Dedicated to the Mariners who died in service of their country during all Wars, including Revolutionary War, World War II, Korea, Vietnam; and their U.S. Naval Armed Guard shipmates "[Mariners] have written one of its most brilliant chapters. They have delivered the goods when and where needed in every theater of operations and across every ocean in the biggest, the most difficult and dangerous job ever undertaken. As time goes on, there will be greater public understanding of our merchant's fleet record during this war [World War li]." President Franklin D. Roosevelt Just Browsing? Start Here Frequently Asked Questions Applying for Veteran's Status DD214 WWII Merchant Marine and ATS How to get mariner's service record How to research history of a ship Where to buy ship_photos Merchant Marine Jobs Shipmate Search Search posted messages Sitemap Contact Congress: Belated Thank You to the Merchant Mariners of WW ll Act of 2009 HR 23 Passed by House 05/12/09 S 663 Cosponsors: 39 08/07/09 Multimedia CD Available CD presents a "mini" history of Merchant Marine during VVW II to show Member of Congress National Maritime Day Proclamation by President Barack Obama 05/21/09 American Merchant Marine at Normandy June 1944 FEATURE! Mysterious Loss of SS Crusader Gift Items Posters, books, hats, patches pins Capt. George Duffy's POW Page Captain Duffy, a POW of both Germans and Japanese during WWII writes from that perspective (13 articles) Merchant Marine at War Featured at www.USMM.org • Vaco Rubber Lifesaving Suit •capactr' of One Liberty Ship • Duties of Engine Crew • Duties of Deck Crew • Duties of Stewards • Allied Merchant Ship Losses 1939-43 Bruce Felknoes Page The Forgotten Heroes of World World War 11 (12 articles) Bruce Felknor crossed the bar 09/27/08 Veteran Status and Just Compensation • Revolutionary War Names of 8,000 Prisoners • War of 1812 • Mexican-American War • Civil War • Spanish-American War • World War I • World War II • Korean War MSTS in Korean War Merchant Ships MSTS Ships • Vietnam War • Gulf War 1990-91 • Ready Reserve Ships to Iraq 2003 • African-American Mariners in WWII • Women Mariners in WWII • Prisoners of War in WWII • Past features Merchant Marine WWII Training • Merchant Marine Cadet Corps • U.S Maritime Service • Gunnery • Heaving Line Excerpts • Belated Thank You to Merchant Mariners of World War ll H.R. 23 and S 663 • Struggle for Veteran Status • Seamen's War Service Act Struggle for promised Benefits • Applying for Veteran's Status DD214 WWII Merchant Marine and Army Transport Service • TrainingFlospital Corpsmen Veteran Organizations • USMS Answer Men • List of USMS Enrolling Offices 1944 • USMS Accepts 16 Year Olds • USMS Insignia Casualties in WW II • Names of WWII Mariners Killed 09/19/08 • Names & Fates of WWII POWs 02/22/07 • Names of WWII Mariners Ships and Shipyards Buried in National Cemeteries Overseas 8/20/02 • Names of Armed Guard Killed/Wounded 09/19/08 Army Transport Service History. Comparison of U.S. Army and U.S. Navy Vessels in World War II Arm Trans ortation Cores Training School MSTS and Military Sealift Command History, Korean War, Europe, Arctic, Tankers, Troopships, Reserve Fleet, Special Missions Medals, Insignia, Posters • Merchant Marine Medals and Ribbons • AMMV Chapters 08/07/09 • USMMVVVINII (U.S. Merchant Marine Veterans WVVII) Hoffman Island Radio Association 05/21/09 • Gulfstream Chapter AMMV —(SE Florida) 01/19/06 • Dennis Roland Chapter AMMV (NJ) 08/27/06 • Edwin J. O'Hara AMMV (NY, NY) 10/13/01 • MO Valley Mariners AMMV (Lincoln, NE) 03/17/03 • Lfigh-Rollers AMMV (Las Vegas) 06/12/09 Miscellaneous • National Maritime Day Proclamations 1933 - 2008 • Merchant Marine Act of 1936 • Roosevelt Speeches and Statements • Memorial Service and Prayers for Mariners 10/11/07 • Poems about Mariners 10/06/07 • Nautical Terms and Definitions • Merchant Marine Organizations • Maritime Links 07/17/08 • Merchant Marine Hymn Heave Ho! • 46 WWII Press Releases 02/25/07 • Ship Lists 41 Lists include all Maritime Commission ships • Ships Sunk or Damaged WW II 02/22/07 • List of Shipyards • Shipyard suppliers • Ship Operators WW II • Stories of WWII Ships Equipment aboard in WWII • Lifeboat Equip' ment • Slop Chest • Medicine Chest Books, Articles, Quotes, Speeches • Newspaper Articles • Books, Videos, CDs 06/18/08 • Book Reviews 11/20/06 • Distinguished Service Medals • Meritorious Service Medals • Military Medals Awarded Mariners • Walt Din Merchant Marine Emblem • USMS and Merchant Marine Insignia • Merchant Marine Seal • 173 Wartime Posters 06/18/08 • Edition Capt. Moore book • Index to Capt. Moore book • Quotes about Merchant Marine Military and political leaders since George Washington • President Roosevelt $_peeches & Statements • FDR states Merchant Marine an Armed Force Intormation sheet One page flyer to download re WW II Merchant Marine Merchant Marine Items for Sale Posters, books, hats, patches Reunions & Conferences AMMV Convention May 14-18, Tampa FL Hoffman Island (HIRA) REunion May 5-8, Mitags, MD Thanks to all who support this website. If you appreciate our website — help keep us afloat. Donate now using your checking account or credit card via PayPal or send your donation (US$ payable to T. Horodysky): T. Horodysky usmm.org Make t A Donal! n 27 Westbrook Way Eugene, OR 97405 vvww.USMM.org ©1998 - 2009. You may quote small portions of material on this website as long as you cite American Merchant Marine at War, www.usmm.org , as the source. You may not use more than a few paragraphs without permission. If — you see substantial portions of any page from this website on the Internet or in published material please notify usmm.org @ comcast. net Go to Records and Contact Information to find out about people or ships. We appreciate your comments, suggestions, and corrections. Please contact us before sending graphics files or attachments. Due the high volume of e-mail, we are no longer able to answer questions whose answers are readily available on our website. Please look carefully at the Records and Contact Information and Frequently Asked Questions pages before writing. Please make sure to "unblock" our e-mail address so we can reply to you. Created March 26, 1998 Last updated August 7, 2009 USMM.org is powered by The Diamond Lane. The Diamond Lane specializes in providing high-quality Internet service, Web hosting and colocation." One way to understand the Second World War is to appreciate the critical role of merchant shipping... the availability or non-availability of merchant shipping determined what the Allies could or could not do militarily.... when sinkings of Allied merchant vessels exceeded production, when slow turnarounds, convoy delays, roundabout routing, and long voyages taxed transport severely, or when the cross-Channel invasion planned for 1942 had to be postponed for many months for reasons which included insufficient shipping.... Had these ships not been produced, the war would have been in all likelihood prolonged many months, if not years. Some argue the Allies would have lost as there would not have existed the means to carry the personnel, supplies, and equipment needed by the combined Allies to defeat the Axis powers. [It took 7 to 15 tons of supplies to support one soldier for one year.] The U.S. wartime merchant fleet. . . constituted one of the most significant contributions made by any nation to the eventual winning of the Second World War.... In the final assessment, the huge US merchant fleet.. provided critical logistical support to the war effort... The Oxford Companion to WORLD WAR 11 Casualties The United States Merchant Marine provided the greatest sealift in history between the production army at home and the fighting forces scattered around the globe in World War 11. The prewar total of 55,000 experienced mariners was increased to over 215,000 through U.S. Maritime Service training programs. 1- Merchant ships faced danger from submarines, mines, armed raiders and the elements. About 8,300 mariners were killed at sea, 12,000 wounded of whom at least 1,100 died from their wounds, and 663 men and women were taken prisoner. (Total killed estimated 9,300.) Some were blown to death, some incinerated, some drowned, some froze, and some starved. 66 died in prison camps or aboard Japanese ships while being transported to other camps. 31 ships vanished without a trace to a watery grave. [Illustration shows SS Byron D. Benson torpedoed on 414/42 off North Carolina: 10 members of the crew of 37 lost their lives.] 1 in 26 mariners serving aboard merchant ships in World WW !Idled in the line of duty, suffering a greater percentage of war-related deaths than all other U.S. services. Casualties were kept secret during the War to keep information about their success from the enemy and to attract and keep mariners at sea. Newspapers carried essentially the same story each week: "Two medium-sized Allied ships sunk in the Atlantic." In reality, the average for 1942 was 33AIlied ships sunk each week. Bari - the Second Pearl Harbor One of the most costly disasters of the war occurred in the Italian port of Bari, Dec. 2, 1943, during the invasion of Italy. A German air attack sank 17 Allied merchant ships with a loss of more than 1,000 lives. One of the five American ships destroyed that day was the SS John Harvey which carried a secret cargo of 100 tons of mustard gas bombs. When these exploded, hundreds of mariners, navy sailors and civilians were affected. Many died from the effects of the mustard gas. [Illustration at right shows ships burning at Bad.] The Massacre of the SS Jean Nicolet The Liberty ship SS Jean Nicolet was torpedoed by a Japanese submarine on July 2, 1944, off Ceylon (Sri Lanka). She had a 41-man crew, plus 28 Armed Guard, 30 passengers and an Army medic. All survived the explosion. They were taken aboard the sub and their lifeboats and rafts were sunk. With their hands tied behind their backs they were forced to sit on deck. Japanese sailors massacred many with bayonets and rifle butts. Thirty survivors were still on deck with their hands tied when a British plane appeared. The sub crash-dived, washing the survivors into the sea. Only 23 were rescued. Ships Sunk or Damaged in WWII Sunk various causes Sunkby submarines 6- , 1800 1600 1400 1200 1000 800 600 400 200 0 39 40 41 42 43 44 45 46 • n••n•••••n••••• 14/ • il•••••• •• •,•• 4.0 • Ilt•••n••••n• •• • • 1.•n• • •••n• •,./.•• • • Ships attacked before Pearl Harbor Ship Sinkings by Region • Werth Atlantic • South Mantic • Mediterranean o Indian Ocean • Pacific The Battle for Control of the Atlantic In his book "The Second World War," Winston Churchill stated: "The only thing that ever really frightened me during the war was the U-Boat peril." ---- The Battle of the Atlantic was not what one usually thinks of as a "battle," since it did not take place in one location over a limited period, such as the Battle of the Bulge. It was a Battle for CONTROL over shipping in the Atlantic and lasted from September 1939 until May 1945. Germany's submarines (U- Boats) tried to sink merchant ships faster than the Allies could build them. Starting in 1940, through the middle of 1942, U- Boats were very successful - they sank more ships than were built. Allied merchant ships sunk in Atlantic Statistics about Allied losses of men and ships in the Battle of the Atlantic vary widely. Battle of the Atlantic Statistics Convoys Germany used the U-Boat (Unterseeboot) to great advantage early in World War I to isolate Great Britain from much of its food, oil, and raw materials. Several days before the outbreak against supply ships, and again Britain instituted convoys, which had been so successful in limiting losses 20 years earlier. The downside to convoys were the delays involved: waiting to assemble; taking a common, but often longer route; reducing speed to match the slowest ship, and delays in unloading because of congestion. This cut cargo-carrying capacity by one-third. U-Boat Happy Time In September 1939, Germany had 46 U- Boats. By the end of the War, 863 U- Boats were commissioned. At first, the U- Boats went out individually, but changed tactics in September 1940, to travel at night in "wolf packs" preying on merchant ships. This was their first "Happy Time." Eventually, the British beefed up convoy escorts and air support, and losses decreased. As soon as Germany declared war on the United StatesVec. 12, 1941), U-Boats headed for the U.S. Atlantic seaboard. From January to May 1942 was "Happy Time" again. For inexplicable reasons, the U.S. did not arm the ships, nor provide escorts or air cover, nor organize convoys along the Atlantic or Gulf Coasts or in the Caribbean. Fleet Admiral Ernest J. King was responsible for this inaction. The U.S. Government did not order a blackout of seacoast cities until June 1942, leaving ships silhouetted against the shoreline. Allied ships were "sitting ducks" for the well-armed U-Boats lurking in U.S. coastal waters. U.S. beaches soon became littered with bodies and burned-out ships. The story of SS Oklahoma and SS Esso Baton Rouge and the Oklahoma's unnamed dead, identified and honored in 1999. [Courtesy of The Atlanta-Journal Constitution] 1942 was the most successful year in U-Boat history, with 1,200 Allied ships sunk. (Middlebrook, Convoy) Other sources count 1,664 ships sunk, 1,097 of them in the North Atlantic. (Albion & Pope, Sea Lanes in Wartime) Between December 1941 and May 1942, the U.S. Navy and Coast Guard sank only two U-Boats. Late in the spring of 1942, the War Shipping Administration finally organized trans-Atlantic convoys, with American, Canadian, and British escorts to improve the odds for the slow, lightly armed ships. Along the seaboard, ships were herded into port overnight. However, the situation for merchant ships was still poor. 7 through spies and interception of radio messages about planned convoy routes and cargoes, but even without that information, submarines would line up about 15 miles apart across the expected convoy route. The first to spot the convoy would fall in a few miles behind and signal for the rest of the "pack" to assemble for the night attacks. Groups of U-Boats would stage simultaneous attacks from several directions. A "classic" attack was to come in submerged ahead of the convoy, allow the escorts to pass, and to come up to periscope depth in the middle of the convoy! Many battles between U-Boats and convoys took place in the "Air Gap," a wide band of the North Atlantic which was not patrolled by aircraft and took 4 or 5 days to cross by convoy. Airplanes could spot submarines at great distances and drop depth charges to keep the subs away from the convoy, so submarines rarely attacked while aircraft protected a convoy. The U.S. had 112 long-range aircraft which could have provided air cover across the entire Atlantic, but chose to put all 112 in the Pacific. As U-Boat successes mounted, the British ignored internal suggestions to bomb the U-Boat poffs in St Nazaire and Lorient on the Bay of Biscay, France, concentrating on German factories instead. By October 1942, when U.S. and British Air Forces finally bombed the submarine pens, they had been reinforced with 12 feet of reinforced concrete. The Allies dropped 40,000,000 pounds of bombs, lost over 100 planes, and not a single U-Boat was damaged. Greatest Convoy Battle of All Time In March 1943, Convoys HX229 and SC122 with 88 merchant ships and 15 escorts, were bound for Europe from New York, via Halifax, on parallel courses. In mid-Atlantic, they were relentlessly attacked by 45 U-Boats operating individually and in "wolfpacks," who fired 90 torpedoes, sinking 22 ships, and resulting in 372 dead. Germany called it the "greatest convoy battle of all time." British and U.S. escorts used 298 depth charges to sink one German submarine and to damage several others, while suffering 1 casualty. Escort vessels were overwhelmed by the simultaneous need to hunt submarines and pick up survivors. Convoy HX229 • Escort Escort Commodore 1. 1111111111t •1111111111 F.scort 7 111111111 rt • Conroy SC122 \COnvoy X229 ed, T sag 2000 Convoy "--" ure yaols cos The fan-shaped areas in the diagram of Convoy HX229 indicate radar range of escort vessels. Speedier escorts sailed back and forth along the perimeter of the convoy, like sheepdogs guarding their flock. The grouping of merchant ships is approximately 5 miles wide; the most valuable cargo such as airplanes, gasoline, ammunition, and troops was centered in the convoy. Stragglers from convoy faced almost certain destruction by the "wolves." Convoy SC122 averaged 6.9 knots across the Atlantic, while U-Boats — averaged 17.5 knots on the surface, 7 knots submerged. In the accompanying diagram, Convoys HX229 and SC122 are represented by rectangular areas with their direction of travel shown. The dark dots represent submarines, shown arranged in their groups "Sturmer," "Dranger," and "Raubgraf." One submarine is shown tailing Convoy HX229; some submarines are refueling at the two tankers indicated by the "T." (Diagrams adapted from Middlebrook: Convoy) SS William C. Gorgas The SS William C. Gorgas, sailing in convoy HX228 from New York to Liverpool, was one of 120 ships torpedoed and sunk in March 1943. The torpedoes killed the engine room crew, but missed the 900 tons of TNT she was carrying. The survivors who were picked up by HMS Harvester (British escort) were torpedoed again that same evening. Only 12 of the 70 mariners and Armed Guard on board the SS William C. Gorgas survived. Ordeal of Convoy NY119 One of the most daring and unusual Atlantic convoys left New York for England in September 1944. It was made up of a variety of sea-going tugs, small harbor tugs, yard tankers, and railroad car floats with wooden barges mounted on top. These were owned by the U.S. Army and were desperately needed in the bombed-out harbors of France. The U.S. Navy, with a few destroyer escorts and other small vessels, managed to herd Islands. The convoy, which took 30 days, encountered a violent storm in the English Channel, losing a large number of ships and 19 mariners in this dare-devil crossing. Murmansk Run: Cold, Deadly Voyages The most deadly of 40 convoys sent to Murmansk, USSR, above the Arctic Circle on the Barents Sea, was PC117 which left Iceland carrying cargo worth $700 million. PQ17 comprised: • 33 merchant ships plus 1 oiler to refuel the escorts • 3 rescue ships • 5 destroyers • 3 corvettes • 3 minesweepers • 4 anti-submarine trawlers • 2 anti-aircraft ships • 2 submarines A large battle fleet of British and U.S. Navy ships sailed on a parallel course. The Allies hopedlo lure the Germans into an uneven battle. But when the British Admiralty mistakenly thought the German battleship Tirpitz with firepower superior to the British ships and the battle cruiser Scheer were on their way to intercept PQ17, the Admiralty ordered British and American warships to abandon the convoy to avoid heavy Navy losses. They told the convoy to: "Scatter fanwise. Proceed to destination at utmost speed." The merchant ships were thus abandoned to almost certain destruction, and an icy death for their crews. [Illustration of mariners from The Battle of the Atlantic, Barrie Pitt, Alexandria, Virginia: Time-Life Books, 1977] The 5 destroyers were ordered to join the fleeing Navy ships. Some of the escorts ran for safety; many bravely tried to help the merchant ships the remaining 700 miles to safety. Between July 4 and July 14, 1942, Nazi torpedo-bombers and U- Boats launched repeated, devastating attacks on the lightly armed ships. The Germans wanted to stop Allied aid to the Soviet Union and hoped that 100% annihilation of a convoy would do it. PO17 was chosen for the "Knights Move." Only 11 of the 34 merchant ships reached port. Twenty-four were sunk, along with 153 manners and Armed Guard, 250,000 tons of war materiel, including 3,500 trucks, 200 German-occupied Norway where they became POWs. Some I/ survivors spent up to 3 weeks on rafts and open lifeboats and lost limbs to frostbite. Ironically, the German battleships never did put to sea. Winston Churchill so aptly said, "PQ17 was one of the most melancholy episodes of the war." Through the Murmansk Run, the United States supplied the Soviet Union with 15,000 aircraft, 7,000 tanks, 350,000 tons of explosives, and 15,000,000 pairs of boots. American boots made a difference on the Eastern Front, especially during the harsh winters. List of American Ships on the Murmansk Run Action in the South Atlantic One of the most dramatic acts of heroism occurred Sept. 27, -1-942, in the South Atlantic on the Liberty ship SS Stephen Hopkins. She came upon the heavily-armed German raider Stier, disguised as a neutral ship, and her escort, the Tannenfels. When the Hopkins refused to surrender, both vessels shelled her. The Hopkins fought back valiantly. With his ship in flames and her stern gun-crew dead, engine cadet Edwin O'Hara, from the U.S. Merchant Marine Academy, fired the last five available shells, setting the Stier on fire. O'Hara, killed by shrapnel, and 40 others went down with the ship. The Stier blew up and sank. The 19 survivors of the SS Stephen Hopkins set off on a 2,000-mile, 31-day voyage to Brazil in a lifeboat during which four crewmen died. Captain Paul Buck, O'Hara and three officers were given the Distinguished Service Award posthumously. The Hopkins received the Gallant Ship Award. The U.S. Merchant Marine Academy is the only Federal academy authorized to carry the Battle Standard Flag, by virtue of her 142 Cadets killed in action. 1 2. [Midshipman Edwin J. O'Hara, loading the last shell on the SS Stephen Hopkins. Painting by W.M. Wilson, reproduced by permission of the U.S. Merchant Marine Academy] End of U-Boat Action When Germany capitulated in May of 1945, Admiral Doenitz ordered the commanders of forty-three U-Boats then at sea to cease action and give themselves up,--but it was not until August of 1945 that the last "Sea Wolf' made port. Of the 863 U-Boats commissioned, 784 were lost at sea or incapacitated in port. SS Black Point -- Last U-boat Victim of the War - May 5, 1945 off Point Judith, Rhode Island. Merchant Marine in the Pacific On Dec. 7, 1941, the cargo ship SS Cynthia Olson was the first U.S. flag ship torpedoed by a Japanese submarine in World War II. The ship and all on board were lost about 1,200 miles west of the Pacific Coast. The tanker SS Emidio was sunk by a Japanese sub 18 miles off Crescent City, California on December 20, 1941. The Japanese navy never targeted shipping in the Pacific, so the convoy system was used primarily during invasions. Hundreds of merchant marine ships shuttled men, food, guns, ammunition, and other supplies across the Pacific. 44 merchant ships were sunk at Pacific beachheads, countless others damaged by kamikazes, bombers, artillery, or torpedoes while they took part in every invasion. "The men and ships of the Merchant Marine have participated in every landing operation by the United States Marine Corps from Guadalcanal to Iwo Jima — and we know they will be at hand with supplies and equipment when American amphibious forces hit the uer.4•03 1..•-•7 11014101011 I 1111111• Lt Gen. Alexander A. Vandegrift, U. S. Marine Corps Commandant SS Admiral Halstead The SS Admiral Halstead was in Port Darwin, Australia on February 19, 1942 with 14,000 barrels of high octane gasoline when the Japanese launched heavy air raids on the port. After the first raid, military authorities ordered the crew to leave the ship. For 9 days, 6 of her crew voluntarily reboarded her each morning to take her away from the docks, and each night brought her back to discharge her precious cargo. They manned her two machine guns successfully -- the SS Admiral Halstead was the only one of the 12 ships in the harbor which was not damaged or destroyed. Battle for the Philippines In October 1944 merchant ships delivered 30,000 troops and 500,000 tons of supplies to Leyte, during the invasion of the Philippines. They shot down at least 107 enemy planes during the almost continuous airattacks. In the Mindoro invasion of the Philippines, more merchant mariners lost their lives than did members of all the other Armed Services combined. Sixty-eight mariners and Armed Guard on the SS John Burke and 71 on the SS Lewis E. Dyche disappeared, along with their ammunition-laden ships as result of kamikaze attacks. The SS Francisco Morazon, also in the same convoy, fired 10 tons of ammunition defending herself. A majority of the merchant ships sunk in the Pacific were sunk by kamikaze suicide pilots. Twenty ships loaded with troops and ammunition were anchored at Leyte fighting off the round-the-clock kamikaze attacks. Merchant mariners were fully involved working with the Armed Guard gun crews, rescuing soldiers from fiery decks below, and often assisting the Army doctors with the wounded. One kamikaze hit the SS Morrison B. Waite, starting fires among the Army trucks below. Able seaman Anthony Martinez went into the cargo hold to rescue several soldiers who were unloading the trucks, then dove overboard to rescue two soldiers who were blown into the water. Commenting on the part the Merchant Marine played in the Mindoro Invasion, Gen. Douglas MacArthur said: "I have ordered them off their ships and into foxholes when their ships became untenable under attack. The high caliber of efficiency and the courage they displayed mark their conduct throughout the entire campaign in the Southwest Pacific area. I hold no branch in higher esteem than the Merchant Marine." Mariners who participated in these invasions received veteran status in 1988 only after a long court battle! Theater Operations and earning Battle Stars for their U.S. Naval Armed Guard crews Operation Downfall - Planned Invasion of Japan [Landing barges at Okinawa carry ammunition, fuel, and other supplies from the cargo ships seen on the horizon. War Shipping Administratiohoto] Merchant ships delivered many of the 180,000 troops and over 1 million tons of supplies during the-invasion of Okinawa while under attack from 2,000 kamikazes as well as other airplanes. The next invasion, OPERATION DOWNFALL, was to be the Japanese islands. In April 1945 there were an estimated five million Japanese military, with nearly two million on the main islands. Japan's terrain was considered good for defense and difficult to attack. The invasion would be tougher than Normandy, Tarawa, Saipan, Iwo Jima or Okinawa. The United States forces in the Pacific had suffered 300,000 battle casualties up to July 1st. The assault on Japan was predicted to kill and wound one million more Americans. Invasion plans involved nearly five million American soldiers, sailors, marines and coast guardsmen. Convoys carrying the troops and supplies to the landings in Japan would have to cross hundreds of miles of ocean on their way from the Marianas, the Philippines and Okinawa. Japan had 9,000 aircraft and 5,000 kamikaze ready for attacks on the invasion fleet. The U.S. Merchant Marine was an essential part of this huge planned effort. Dropping atomic bombs over Hiroshima and Nagasaki led to the signing of unconditional surrender on board the USS Missouri on September 2, 1945. While action by Japanese units continued in various areas throughout the Pacific, the U.S. Merchant Marine was given the job of transporting the surrendered armies back to Japan. The Merchant Marine also had to return the tired, wounded, and dead U.S. troops home, and to bring replacement forces and supplies for the Occupation. Arms and bombs had to be returned to the U.S.. In December 1945, the War Shipping Administration listed 1,200 sailings - 400 more than in the busiest month of the previous 4 years. 49 U.S. merchant ships were sunk or damaged after V-J Day with at least 7 mariners killed and 30 wounded. Ships sunk after V-E and V-J Day Merchant Marine in Every Invasion The Merchant Marine-on their Liberty ships, World War I vintage "Hog Islanders," and anything else that floated, took part in every invasion of World War II. Many Libertys had temporary accommodations for 200 troops and headed for the beaches under enemy fire with invasion barges in the rigging ready to lower. [Ship unloading onto barge at Anzio, Italy, War Shipping Administration photo] Allied invasions started in November 1942: North Africa, followed by Sicily, Salerno, Anzio, and Southern France. In the narrow Mediterranean, full of islands and peninsulas, ships always faced attack from land, as well as air and sea. They were attacked by airplanes, shore-based artillery, submarines, mines, frogmen, and glide bombs. During 9 days at Anzio, Italy, the Liberty ship SS F. Marion Crawford counted: 76 air attacks by 93 planes, and 203 near misses from shore artillery. The ship took 2 hits from 170 mm shells. Her crew hit 3 enemy planes. The experience of a 13 ship convoy to Algeria in January 1943 was typical: Junkers 87's [German planes] made torpedo runs at same time as a flight of dive bombers attacked. Liberty ship SS William Wirt, carrying aviation fuel, shoots down 4 bombers. A dud bomb landed inside her hold. One bomber crashes into Norwegian ship, which explodes and sinks. British ship carrying American troops torpedoed and sinks. Three waves of Allies sink an Axis submarine. Torpedo-bombers and high-level bombers attack again; SS William Wirt, shoots one bomber down. Two more air attacks sink one ship. On the homeward leg, another air attack near Gibraltar. Normandy Invasion Ships and more ships, as far as the eye can see at Normandy beach. Note the large number Liberty ships disgorging their cargo into small boats. This shows the part played by the merchant marine in bringing the men and their equipment across the Channel for the invasion. Barrage balloons protect the ships from attack by low-flying aircraft. [War Shipping Administration photo] American mariners took part in the invasion of Normandy on June 6, 1944. In the two years before the invasion, enormous quantities of war materiel were ferried across the U-Boat infested Atlantic to Britain by merchant ships. About 2,700 merchant ships were involved in the first wave of the invasion on D-Day, landing troops and munitions under enemy fire. In Operation Mulberry, about 1,000 American mariner volunteers sailed 22 obsolete merchant ships (Blockships), to be sunk as artificial harbors at the Omaha and Utah beachheads. These ships, many of which had previously suffered severe battle damage, were charged with explosives for quick scuttling. They sailed from England through mined waters, set up in position under severe shelling from the Germans, and were sunk. Behind this breakwater, prefabricated units were towed in to handle the unloading of men and equipment. American mariners also crewed many of the tugs which towed the huge concrete caissons across the English channel to be sunk with the Blockships. During the next year, at great risk, of munitions and supplies, and a half million trucks and tanks from England to France. American Merchant Marine at Normandy June 1944 We Deliver the Goods There were three major groups that represented the U.S. in World War II. Our fighting forces overseas, our production force at home and the Merchant Marine and the Naval Armed Guard, the link between them. Each force was dependent upon the other. The Merchant Marine was responsible for putting our armies and equipment on enemy territory and maintaining them there. Merchant ships delivered : • Troops • Ammunition, food, tanks, and winter boots for the U.S. and Allied infantry • Bombs, airplanes, and their fuel • Raw material needed to make all of the above We Deliver the Goods Statistics from War Shipping Administration Report, January 15, 1946 Troops and Cargo Transported During World War II under U.S. Army Control Quotess During World War II President Franklin D. Roosevelt and many military leaders praised the role of the U.S. Merchant Marine as the "Fourth Arm of Defense." Selected Quotes General Quarters! All Hands to Battle Stations! Naval Armed Guard and Mariners worked as a team manning the guns during WWII Ship poster prohibiting diaries or other communications Battle of the Atlantic Statistics Allied Merchant Ship Losses 1939 to 1943. Press Release, Office of War Information, Nov. 28, 1944 War Shipping Administration List of Officials, Purpose, Creation, Activities Troops and Car o Trans orWc_g______p_II__Xg_rrin Work' War II under Men and Ships of World War II U.S. Maritime Service Training Organization Home 01/31/07 www.USMM.org ©1998 - 2007. You may quote material on this web page as long as you cite American Merchant Marine at War, www.usmm.org , as the source. You may not use more than a few lines without permission. If you see substantial portions of this page on the Internet or in published material please notify usmm.org © comcast net (date) AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk „- Enclosure: Staff Report for meeting of [cc or RDA] (name — brief description) Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) City Departments Item Attachments include (this needs to match the attachment list in the Staff Report: A. B. C. Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting KY-) DATE: [Name or Initials], [Title] S:\City Clerk\Transmittal Form for Staff Report.doc Approvals City Manager: Finance Directo Page 1 of 2 AGENDA ITEM 14-. November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Tim Hults, Assistant City Manager SUBJECT: Amendment to the Transportation Uniform Mitigation Fee (TUMF) RECOMMENDATION: Staff recommends that the City Council, by motion: 1. Introduce Ordinance No. authorizing continued participation in the Western Riverside County Transportation Uniform Mitigation Fee program and establishing a temporary TUMF reduction. 2. Adopt Resolution No. that identifies the adjusted Transportation Uniform Mitigation Fee schedule and establishes a temporary TUMF reduction. BACKGROUND: The City is a Member Agency of the Western Riverside Council of Governments ("WRCOG"), a joint powers agency comprised of the County of Riverside and sixteen (16) cities located in Western Riverside County. Acting in concert, the WRCOG Member Agencies developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials due to new development in Western Riverside County could be made up in part by a Transportation Uniform Mitigation Fee ("TUMF") on future residential, commercial and industrial development. As a Member Agency of WRCOG and as a TUMF Participating Jurisdiction, the City participated in the preparation of a certain "Western Riverside County Transportation Uniform Fee Nexus Study," ("2002 Nexus Study") later adopted by the WRCOG Executive Committee. Based on the 2002 Nexus Study, the City adopted and implemented an ordinance authorizing the City's participation in a TUMF Program. Pursuant to the Mitigation Fee Act (Gov. Code §§ 66000 et seq.), WRCOG has prepared a new nexus study ("2009 Nexus Study") to update the fees. The 2009 Nexus Study includes an Addendum discussing the need for a temporary reduction in fees. On September 14 and October 5, 2009, the WRCOG Executive Committee reviewed the 2009 Nexus Study and TUMF Program and recommended TUMF Participating Jurisdictions update their fees by amending their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction. The WRCOG Executive Committee also authorized a temporary reduction in fees. DISCUSSION: The proposed Ordinance provides the legal basis for a revised TUMF schedule and a one year temporary reduction in fees. The Ordinance also revises definitions of "Class A" and "Class B" Office and establishes a definition for "TUMF participating jurisdiction." The actual TUMF schedule and temporary fee schedule will be established through the Resolution, which the City Council may amend from time to time when needed. In accordance with the Mitigation Fee Act, the proposed Ordinance and 2009 Nexus Study: (i) identify the purpose of the revised fees; (ii) identify the use to which the revised fees are to be put, including identification of any facilities to be financed; (iii) determine how there is a reasonable relationship between the fee's use and the type of development project on which the fee is imposed; (iv) determine how there is a reasonable relationship between the need for the public facilities and the type of development project upon which the fees are imposed; and (v) determine how there is a reasonable relationship between the amount of the fees and the cost of the public facilities or portion or the public facility attributable to the development on which the fees are imposed. The Addendum discussing the need for a temporary fee reduction also sets forth a set of adjustments to the maximum TUMF share of the various Network and Transit project costs and addresses the issue of the resultant Program funding shortfall. The adjustments assure a balance between the overall fee revenues generated at the reduced fee levels and the eligible project costs upon which the TUMF is based and the revenues expended. ALTERNATIVES: The Council can choose not to implement the temporary reduction of the TUMF program. Doing so would provide full proceeds to WRCOG, but would not necessarily ensure that the increased funds are returned to the City. It could also result in a competitive disadvantage as a developer may opt to build in another jurisdiction where the temporary reduction has been implemented. FISCAL IMPACT: The adoption of the updated TUMF program will result in administrative costs to update our fee collection software, to collect the fees, to transmit the fees to WRCOG and to prepare the appropriate TUMF reports. ATTACHMENTS: Ordinance No. , an Ordinance amending and superseding Ordinance No. 06-08 authorizing participation in the Western Riverside County Transportation Uniform Mitigation Fee program and adopting a temporary TUMF reduction. Resolution No. , a Resolution establishing a revised and updated fee schedule applicable under the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) program and adopting a temporary TUMF reduction. Page 2 of 2 STATE OF CALIFORNIA ) ORDINANCE NO. COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO AMENDING AND SUPERSEDING ORDINANCE NO. 06-08 TO UPDATE ITS PARTICIPATION IN THE WESTERN RIVERSIDE COUNTY TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) PROGRAM AND ADOPT A TEMPORARY TUMF REDUCTION THE CITY COUNCIL OF THE CITY OF SAN JACINTO DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Title. This Ordinance shall be know as the "Western Riverside County Transportation Uniform Mitigation Fee Program Ordinance of 2009" ("Ordinance"). Section 2. Findings. A. The City is a member agency of the Western Riverside Council of Governments ("WRCOG"), a joint powers agency comprised of the County of Riverside and 16 cities located in Western Riverside County. Acting in concert, the WRCOG Member Agencies developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials in Western Riverside County (the "Regional System") could be made up in part by a Transportation Uniform Mitigation Fee ("TUMF") on future residential, commercial and industrial development. A map depicting the boundaries of Western Riverside County and the Regional System is attached here as Exhibit "A" and incorporated herein. As a Member Agency of WRCOG and as a TUMF Participating Jurisdiction, the City participated in the preparation of a certain "Western Riverside County Transportation Uniform Fee Nexus Study," dated October 18, 2002 (the "2002 Nexus Study") prepared in compliance with the Mitigation Fee Act (Gov. Code §§ 66000 et seq.) and adopted by the WRCOG Executive Committee. Based on the 2002 Nexus Study, the City adopted and implemented an ordinance authorizing the City's participation in a TUMF Program. B. WRCOG, with the assistance of TUMF Participating Jurisdictions, has prepared an updated nexus study entitled "Transportation Uniform Mitigation Fee Nexus Study: 2009 Update" ("2009 Nexus Study") pursuant to California Government Code sections 66000 et seq. (the Mitigation Fee Act), for the purpose of updating the fees. On September 14 and October 5, 2009, the WRCOG Executive Committee reviewed the 2009 Nexus Study and TUMF Program and recommended TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program. C. Consistent with its previous findings made in the adoption of Ordinance No. 03- 03 and Ordinance No. 06-08, the City Council has been informed and advised, and hereby finds, that if the capacity of the Regional System is not enlarged and unless development 1 contributes to the cost of improving the Regional System, the result will be substantial traffic congestion in all parts of Western Riverside County, with unacceptable Levels of Service. Furthermore, the failure to mitigate growing traffic impacts on the Regional System will substantially impair the ability of public safety services (police and fire) to respond and, thus, adversely affect the public health, safety and welfare. Therefore, continuation of a TUMF Program is essential. D. However, the City Council realizes the impact of an economic recession on development and the construction sector in Western Riverside County as indicated in the Addendum to the 2009 Nexus Study, attached and incorporated as part of the 2009 Nexus Study in Exhibit "B." The City Council finds that that a temporarily fifty percent (50%) reduction in TUMF fees through December 31, 2010 will encourage economic development by reducing the overall cost of development. The same adjustment of the entire TUMF Program will also assure that each development continues to contribute a fair share of the total Program costs without unduly burdening later projects to make up the TUMF revenues that would be effectively forfeited during the temporary reduction period. The City Council further finds that the resulting minor decrease in TUMF revenues will not have a material effect on the ability to fulfill the purposes of the TUMF Program or the ability to make the findings recited herein pursuant to the Mitigation Fee Act. E. The City Council finds and determines that there is a reasonable and rational relationship between the use of the TUMF and the type of development projects on which the fees are imposed because the fees will be used to construct the transportation improvements that are necessary for the safety, health and welfare of the residential and non-residential users of the development in which the TUMF will be levied. F. The City Council finds and determines that there is a reasonable and rational relationship between the need for the improvements to the Regional System and the type of development projects on which the TUMF is imposed because it will be necessary for the residential and non-residential users of such projects to have access to the Regional system. Such development will benefit from the Regional System improvements and the burden of such developments will be mitigated in part by payment of the TUMF. G. The City Council finds and determines that the cost estimates set forth in the new 2009 Nexus Study are reasonable cost estimates for constructing the Regional System improvements and the facilities that compromise the Regional System, and that the amount of the TUMF expected to be generated by new development will not exceed the total fair share cost to such development. H. The fees collected pursuant to this Ordinance shall be used to help pay for the design, planning, construction of and real acquisition for the Regional System improvements and its facilities as identified in the 2009 Nexus Study. The need for the improvements and facilities is related to new development because such development results in additional traffic and creates the demand for the improvements. By notice duly given and published, the City Council set the time and place for a public hearing on the 2009 Nexus Study and the fees proposed thereunder, and at least ten (10) days prior to this hearing, the City Council made the 2009 Nexus Study available to the public. J. At the time and place set for the hearing, the City Council duly considered data and information provided by the public relative to the cost of the improvements and facilities for 2 which the fees are proposed and all other comments, whether written or oral, submitted prior to the conclusion of the hearing. K. The City Council finds that the 2009 Nexus Study proposes a fair and equitable method for distributing a portion of the unfunded costs of improvements and facilities to the Regional system. L. The City Council hereby adopts the 2009 Nexus Study, including its Addendum regarding temporary fee reduction, and its findings. The 2009 Nexus Study is attached and incorporated herein as Exhibit "B." M. The City Council hereby adopts this Ordinance to amend and supersede the provisions of Ordinances No. 03-03 and 06-08. Section 3. Definitions. For the purpose of this Ordinance, the following words, terms and phrases shall have the following meanings: A. "Class 'A' Office" means an office building that is typically characterized by high quality design, use of high end building materials, state of the art technology for voice and data, on site support services/maintenance, and often includes full service ancillary uses such as, but not limited to a bank, restaurant/office coffee shop, health club, printing shop, and reserved parking. The minimum requirements of an office building classified as Class 'A" Office shall be as follows: (i) minimum of three stories (exception will be made for March JPA, where height requirements exist); (ii) minimum of 10,000 square feet per floor; (iii) steel frame construction; (iv) central, interior lobby; and (v) access to suites shall be from inside the building unless the building is located in a central business district with major foot traffic, in which case the first floor may be accessed from the street to provide entrances/ exits for commercial uses within the building. B. "Class '13' Office" means an office building that is typically characterized by high quality design, use of high end building materials, state of the art technology for voice and data, on site support services/maintenance, and often includes full service ancillary uses such as, but not limited to a bank, restaurant/office coffee shop, health club, printing shop, and reserved parking. The minimum requirements of an office building classified as Class '13" Office shall be as follows: (i) minimum of two stories; (ii) minimum of 15,000 square feet per floor; (iii) steel frame, concrete or masonry shell construction; (iv) central, interior lobby; and (v) access to suites shall be from inside the building unless the building is located in a central business district with major foot traffic, in which case the first floor may be accessed from the street to provide entrances/exits for commercial uses within the building. C. "Development Project" or "Project" means any project undertaken for the purposes of development, including the issuance of a permit for construction. D. "Gross Acreage" means the total property area as shown on a land division of a map of record, or described through a recorded legal description of the property. This area shall be bounded by road rights of way and property lines. 3 E. "Habitable Structure" means any structure or part thereof where persons reside, congregate or work and which is legally occupied in whole or part in accordance with applicable building codes, and state and local laws. F. "Industrial Project" means any development project that proposes any industrial or manufacturing use allowed in the following Ordinance No. 348 zoning classifications: I-P, M-S-C, M-M, M-H, M-R, M-R-A, A-1, A-P, A-2, A-D, W-E, or SP with one of the aforementioned zones used as the base zone. G. "Low Income Residential Housing" means residential units in publicly subsidized projects constructed as housing for low-income households as such households are defined pursuant to section 50079.5 of the Health and Safety Code. "Publicly subsidized projects," as the term is used herein, shall not include any project or project applicant receiving a tax credit provided by the State of California Franchise Tax Board. H. "Multi Family Residential Unit" means a development project that has a density of greater than eight (8) residential dwelling units per gross acre. I. "Non-Residential Unit" means retail commercial, service commercial and industrial development which is designed primarily for non-dwelling use, but shall include hotels and motels. J. "Recognized Financing District" means a Financing District as defined in the TUMF Administrative Plan as may be amended from time to time. K. "Residential Dwelling Unit" means a building or portion thereof used by one (1) family and containing but one (1) kitchen, which is designed primarily for residential occupancy including single-family and multi-family dwellings. "Residential Dwelling Unit" shall not include hotels or motels. L. "Retail Commercial Project" means any development project that proposes any commercial use not defined as a service commercial project allowed in the following Ordinance No. 348 classifications: R-1, R-R, R-R-0, R-1-A, R-A, R-2, R-2-A, R-3, R-3-A, R-T, R-T-R, R-4, R-5, R-6, C-1/C-P, CT, C-P-S, C-R, 0-0, R-V-C, C-V, W-2, R-D, N-A, W-2-M, W-1, or SP with one of the aforementioned zones used as the base zone. M. "Service Commercial Project" means any development project that is predominately dedicated to business activities associated with professional or administrative services, and typically consists of corporate offices, financial institutions, legal and medical offices. N. "Single Family Residential Unit" means each residential dwelling unit in a development that has a density of eight (8) units to the gross acre or less. 0. "TUMF Participating Jurisdiction" means a jurisdiction in Western Riverside County which has adopted and implemented an ordinance authorizing participation in the TUMF Program and complies with all regulations established in the TUMF Administrative Plan, as adopted and amended from time to time by the WRCOG. 4 Section 4. Establishment of the Transportation Uniform Mitigation Fee. A. Adoption of TUMF Fee Schedule. The City Council shall adopt an applicable TUMF schedule through a separate resolution, which may be amended from time to time. B. Fee Calculation. The fees shall be calculated according to the calculation methodology fee set forth in the Fee Calculation Handbook adopted July 14, 2003, as amended from time to time. The following shall be observed for purposes of calculating the fee: i. For non-residential projects, the fee rate utilized shall be based upon the predominant use of the building or structure identified in the building permit and as further specified in the TUMF Administrative Plan. ii. For non residential projects, the fee shall be calculated on the total square footage of the building or structure identified in the building permit and as further specified in the TUMF Administrative Plan. C. Fee Adjustment. The fee schedule may be periodically reviewed and the amounts adjusted by the WRCOG Executive Committee. By amendment to the Ordinance, the fees may be increased or decreased to reflect the changes in actual and estimated costs of the Regional System including, but not limited to, debt service, lease payments and construction costs. The adjustment of the fees may also reflect changes in the facilities required to be constructed, in estimated revenues received pursuant to this Ordinance, as well as the availability or lack thereof of other funds with which to construct the Regional System. WRCOG shall review the TUMF Program no less than every four (4) years after the effective date of this Ordinance. D. Temporary Fee Reduction Period. i. Notwithstanding Section 4A of Ordinance No. and the adopted TUMF schedule, the City Council may, by separate resolution, adopt a reduced TUMF fee schedule applicable only through December 31, 2010. The TUMF may be so reduced by up to fifty percent (50%) of fees established in the schedule adopted pursuant to Section 4A of this Ordinance. If fees are reduced, all other sections of Ordinance No. shall still be in effect during the temporary fee reduction period. After December 31, 2010, the regular TUMF schedule, as adopted by the City Council and revised from time to time pursuant to Section 4A of this Ordinance, shall automatically apply. ii. If reduced fees are paid pursuant to this Section 4D at the time application is made for a building permit and either the application or the building permit expires, subsequent building permit application on the same parcel shall be subject to the full TUMF amount, unless the temporary fee reduction period is still in effect at the time the subsequent application is made. E. Purpose. The purpose of the TUMF is to fund those certain improvements to the Regional System as depicted in Exhibit "A" and identified in the 2009 Nexus Study, Exhibit "B." F. Applicability. The TUMF shall apply to all new development within the City, unless otherwise exempt hereunder. 5 G. Exemptions. The following new development shall be exempt from the TUMF: Low income residential housing. Government/public buildings, public schools and public facilities. The rehabilitation and/or reconstruction of any habitable structure in use on or after January 1, 2000, provided that the same or fewer traffic trips are generated as a result thereof. iv. Development Projects which are the subject of a Public Facilities Development Agreement entered into pursuant to Government Code section 65864 et seq, prior to the effective date of this Ordinance, wherein the imposition of new fees are expressly prohibited provided that if the term of such a Development Agreement is extended by amendment or by any other manner after the effective date of this Ordinance, the TUMF shall be imposed. v. Guest Dwellings. vi. Additional single family residential units located on the same parcel pursuant to the provisions of any agricultural zoning classifications set forth in the Municipal Code. vii. Kennels and Catteries established in connection with an existing single family residential unit. viii. Detached Second Units. ix. The sanctuary building of a church or other house of worship, eligible for a property tax exemption. x. Any nonprofit corporation or nonprofit organization offering and conducting full-time day school at the elementary, middle school or high school level for students between the ages of five and eighteen years. H. Credit. Regional System improvements may be credited toward the TUMF in accordance with the TUMF Administrative Plan and the following: Regional Tier Arterial Credits: If a developer constructs arterial improvements identified on the Regional System, the developer shall receive credit for all costs associated with the arterial component based on approved Nexus Study, including Addendum 1, for the Regional System effective at the time the credit agreement is entered into. WRCOG staff must pre-approve any credit agreements that deviate from the standard WRCOG approved format. Other Credits: In special circumstances, when a developer constructs off-site improvements such as an interchange, bridge, or railroad grade separation, credits shall be determined by WRCOG and the City in consultation with the developer. All such credits must have prior written approval from WRCOG. The amount of the development fee credit shall not exceed the maximum amount determined by the Nexus Study, including Addendum 1, for the Regional System at the time the credit agreement is entered into or actual costs, whichever is less. Local Tier The local jurisdictions shall compare facilities in local fee programs against the Regional System and eliminate any overlap in its local fee program except where there is a Recognized Financing District has been established. If there is a Recognized Financing District established, the local agency may credit that portion of the facility identified in both programs against the TUMF in accordance with the TUMF Administrative Plan. 6 Section 5. Reimbursements. Should the developer construct Regional System improvements in excess of the TUMF fee obligation, the developer may be reimbursed based on actual costs or the approved Nexus Study, including Addendum 1, effective at the time the agreement was entered into, whichever is less. Reimbursements shall be enacted through an agreement between the developer and the City, contingent on funds being available and approved by WRCOG. In all cases, however, reimbursements under such special agreements must coincide with construction of the transportation improvements as scheduled in the five-year Capital Improvements Program adopted annually by WRCOG. Section 6. Procedures for the Levy, Collection and Disposition of Fees. A. Authority of the Building Department. The Director of Building & Safety, or his/her designee, is hereby authorized to levy and collect the TUMF and make all determinations required by this Ordinance. B. Payment. Payment of the fees shall be as follows: i. The fees shall be paid at the time a certificate of occupancy is issued for the Development Project or upon final inspection, whichever comes first (the "Payment Date"). However this section should not be construed to prevent payment of the fees prior to issuance of an occupancy permit or final inspection. Fees may be paid at the issuance of a building permit, and the fee payment shall be calculated based on the fee in effect at that time, provided the developer tenders the full amount of his/her TUMF obligation. If the developer makes only a partial payment prior to the Payment Date, the amount of the fee due shall be based on the TUMF fee schedule in place on the Payment Date. The fees shall be calculated according to fee schedule set forth in the Ordinance and the calculation methodology set forth in the Fee Calculation Handbook adopted July 14, 2003, as amended from time to time. ii. The fees required to be paid shall be the fee amounts in effect at the time of payment is due under this Ordinance, not the date the Ordinance is initially adopted. The City shall not enter into a development agreement which freezes future adjustments of the TUMF. iii. If all or part of any development project is sold prior to payment of the fee, the property shall continue to be subject to the requirement for payment of the fee. The obligation to pay the fee shall run with the land and be binding on all the successors in interest to the property. iv. Fees shall not be waived. C. Disposition of Fees. All fees collected hereunder shall be transmitted to the Executive Director of WRCOG within thirty (30) days for deposit, investment, accounting and expenditure in accordance with the provisions of this Ordinance and the Mitigation Fee Act. D. Appeals. Appeals shall be filed with WRCOG in accordance with the provisions of the TUMF Administrative Plan. Appealable issues shall be the application of the fee, application of credits, application of reimbursement, application of the legal action stay and application of exemption. 7 E. Reports to WRCOG. The Director of Building and Safety, or his/her designee, shall prepare and deliver to the Executive Director of WRCOG, periodic reports as will be established under Section 7 of this Ordinance. Section 7. Appointment of the TUMF Administrator. WRCOG is hereby appointed as the Administrator of the Transportation Uniform Mitigation Fee Program. WRCOG is hereby authorized to receive all fees generated from the TUMF within the City, and to invest, account for and expend such fees in accordance with the provisions of this Ordinance and the Mitigation Fee Act. The detailed administrative procedures concerning the implementation of this Ordnance shall be contained in the TUMF Administrative Plan adopted May 5, 2003, and as may be amended from time to time. Furthermore, the TUMF Administrator shall use the Fee Calculation Handbook adopted July 14, 2003, as amended from time to time, for the purpose of calculating a developer's TUMF obligation. In addition to detailing the methodology for calculating all TUMF obligations of different categories of new development, the purpose of the Fee Calculation Handbook is to clarify for the TUMF Administrator, where necessary, the definition and calculation methodology for uses not clearly defined in the respective TUMF ordinances. WRCOG shall expend only that amount of the funds generated from the TUMF for staff support, audit, administrative expenses, and contract services that are necessary and reasonable to carry out its responsibilities and in no case shall the funds expended for salaries and benefits exceed one percent (1%) of the revenue raised by the TUMF Program. The TUMF Administrative Plan further outlines the fiscal responsibilities and limitations of the Administrator. Section 8. Effect. No provisions of this Ordinance shall entitle any person who has already paid the TUMF to receive a refund, credit or reimbursement of such payment. This Ordinance does not create any new TUMF. Section 9. Severability. If any one or more of the terms, provisions or sections of this Ordinance shall to any extent be judged invalid, unenforceable and/or voidable for any reason whatsoever by a court of competent jurisdiction, then each and all of the remaining terms, provisions and sections of this Ordinance shall not be affected thereby and shall be valid and enforceable. Section 10. Judicial Review. In accordance with State law, any judicial action or proceeding to attack, review, set aside, void or annul this Ordinance shall be commenced within ninety (90) days of the date of adoption of this Ordinance. Section 11. Ordinances No. 03-03 & 06-08. This Ordinance supersedes the provisions of Ordinances No. 03-03 and 06-08 provided this Ordinance is not declared invalid or unenforceable by a court of competent jurisdiction. If, for whatever reason, this Ordinance is declared invalid or unenforceable by a court of competent jurisdiction, Ordinances No. 03-03 & 06-08 and all other related ordinances and polices shall remain in full force and effect. 8 Section 12. Effective Date. This Ordinance shall take effect sixty (60) days after its adoption. PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on the day of , 2009, by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto By Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP Jeffrey S. Ballinger, City Attorney 9 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) I, City Clerk hereby certify that the attached is a true copy of Ordinance No. introduced by the City Council of the City of San Jacinto, California, at a regular meeting held the day of , 2009. Ordinance was approved, passed and adopted at a regular meeting of the San Jacinto City Council held the day of , 2009. WITNESS my hand and official seal of the City of San Jacinto this , 2009. day of City of San Jacinto City Clerk 10 EXHIBIT "A" MAP OF REGIONAL SYSTEM EXHIBIT "A" Ultimate Number of Lanes "/ 2 Lanes ."/ 4 Lanes 6 Lanes "/ 8 Lanes Mid-County Parkway /*V 2 Lanes /N/ 4 Lanes Railroad Crossings O 1 - $5,390,000 per lane e 2 - $2,700,000 per lane Interchanges O 1 - $47,840,000 • 2 - $23,970,000 0 3 - $11,980,000 • Bridges ",/ Railroads Miles 8 2 4 The Regional System o Arterials TUMF Network Freeways Lakes & Rivers C=1 TUMF Zone Boundary Streets & Roads City Boundaries Execu t Ferura EXHIBIT "B" NEXUS STUDY EXHIBIT "B" TRANSPORTATION UNIFORM MITIGATION FEE NEXUS STUDY 2009 UPDATE FINAL REPORT WRCOG Prepared for The Western Riverside Council of Governments In Cooperation with The City of Banning The City of Beaumont The City of Calimesa The City of Canyon Lake The City of Corona The City of Hemet The City of Lake Elsinore The City of Menifee The City of Moreno Valley The City of Murrieta The City of Norco The City of Perris The City of Riverside The City of San Jacinto The City of Temecula The City of Wildomar The County of Riverside Eastern Municipal Water District March Joint Powers Authority Western Municipal Water District Prepared by Parsons Brinckerhoff. DRAFT OCTOBER 1, 2009 TABLE OF CONTENTS TABLE OF CONTENTS i LIST OF TABLES ES.0 Executive Summary iii ES.1 Introduction and Purpose of the Nexus Study iii ES.2 Future Growth ES.3 Need for the TUMF v ES.4 The TUMF Network vi ES.5 TUMF Nexus Analysis viii ES.6 Fair-Share Fee Calculation ix ES.7 Conclusions ix 1.0 INTRODUCTION AND PURPOSE OF THE NEXUS STUDY 1 2.0 FUTURE GROWTH 4 2.1 Recent Historical Trend 4 2.2 Available Demographic Data 4 2.3 Demographic Assumptions Used for the Nexus Study Analysis 5 3.0 NEED FOR THE TUMF 10 3.1 Future Highway Congestion Levels 10 3.2 Future Transit Utilization Levels 13 3.3 The TUMF Concept 14 4.0 THE TUMF NETWORK 16 4.1 Identification of the TUMF Roadway Network 16 4.2 Backbone Network and Secondary Network 19 4.3 Future Roadway Transportation Needs 22 4.4 Public Transportation Component of the TUMF System 26 4.5 Existing Obligated Funding 27 4.6 Unfunded Existing Improvement Needs 27 4.7 Maximum TUMF Eligible Cost 28 4.8 TUMF Network Evaluation 37 5.0 TUMF NEXUS ANALYSIS 39 5.1 Future Development and the Need for Improvements 39 5.2 Application of Fee to System Components 40 5.3 Application of Fee to Residential and Non-Residential Developments 42 6.0 FAIR-SHARE FEE CALCULATION 44 6.1 Residential Fees 44 6.2 Non-Residential Fees 45 7.0 CONCLUSIONS 47 8.0 APPENDICES 48 WRCOG i DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update LIST OF TABLES Table ES.1 - Transportation Uniform Mitigation Fee for Western Riverside County x Table 2.1 - Base Year Socioeconomic Estimates for Western Riverside County 5 Table 2.2 - Horizon Year Socioeconomic Estimates for Western Riverside County 7 Table 2.3 - Population, Households and Employment in Western Riverside County 8 Table 3.1 - Regional Highway System Measures of Performance (2007-2035)* 11 Table 4.1 - Unit Costs for Arterial Highway and Street Construction 24 Table 4.3 - Unit Costs for Transit Capital Expenditures 26 Table 4.4 - TUMF Network Cost Estimates 31 Table 4.5 - TUMF Transit Cost Estimates 37 Table 4.6 - Regional Highway System Measures of Performance (2035 Base vs 2035 TUMF Network)* 38 Table 5.1 - 2035 Vehicle Trips By WRCOG Zone 41 Table 5.2 - 2035 Percent Vehicle Trips By WRCOG Zone 41 Table 5.3 - Backbone-Secondary Network Share Calculation 42 Table 5.4 - Residential vs. Non-Residential Person Trip Production 43 Table 6.1 - Fee Calculation for Residential Share ($2.61 billion) 45 Table 6.2 - Fee Calculation for Non-Residential Share ($1.16 billion) 46 Table 7.1 - Transportation Uniform Mitigation Fee for Western Riverside County 47 LIST OF FIGURES Figure ES.1 - Population, Households and Employment in Western Riverside County v Figure ES.2 - Regional System of Highways and Arterials-TUMF Network Improvements . vii Figure 2.1 - Base Year Socioeconomic Estimates for Western Riverside County 6 Figure 2.2 - Horizon Year Socioeconomic Estimates for Western Riverside County 7 Figure 2.3 - Population, Households and Employment in Western Riverside County 9 Figure 4.1 - Regional System of Highways and Arterials for Western Riverside County 18 Figure 4.3 - Western Riverside County Area Planning Districts (TUMF Zones) 21 Figure 4.4 - Regional System of Highways and Arterials-TUMF Network Improvements 30 WRC OG II DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update ES.0 EXECUTIVE SUMMARY ES.1 Introduction and Purpose of the Nexus Study Western Riverside County has 16 incorporated cities and the unincorporated county covering an area of approximately 2,100 square miles. Until recently, this portion of Riverside County was growing at a pace exceeding the capacity of existing financial resources to meet increasing demand for transportation infrastructure. Although the recent crisis in the mortgage industry and the associated economic downturn has slowed this rate of growth, the region is expected to rebound and the projected growth in Western Riverside County is expected to increase. This increase in growth could significantly increase congestion and degrade mobility if substantial investments are not made in the transportation infrastructure. In February 1999, the cities of Temecula, Murrieta and Lake Elsinore, the Western Riverside Council of Governments (WRCOG), the Riverside County Transportation Commission (RCTC) and the Building Industry Association (BIA) met to discuss the concept of a Transportation Uniform Mitigation Fee (TUMF) for southwest Riverside County. In August of 2000 the concept was expanded to include the entire WRCOG sub-region. The TUMF program is intended to be implemented through the auspices of WRCOG. While the TUMF cannot fund all necessary transportation system improvements, it is intended to address a current transportation funding shortfall by establishing a new revenue source that ensures future development will contribute toward addressing the impacts of new growth on regional transportation infrastructure. Funding accumulated through the TUMF program will be used to construct transportation improvements that will be needed to accommodate future travel demand in Western Riverside County. By levying a fee on new developments in the region, local agencies will be establishing a mechanism by which developers and in turn new county residents and employees will effectively contribute their "fair share" toward sustaining the regional transportation system. This TUMF Draft Nexus Study is intended to satisfy the requirements of California Government Code Chapter 5 Section 66000-66008 Fees for Development Projects (also known as California Assembly Bill 1600 (AB 1600) or the Mitigation Fee Act) which governs imposing development impact fees in California. The results of the first review of the program were documented in the TUMF Nexus Study 2005 Update adopted by the WRCOG Executive Committee on February 6, 2006. This version of the WRCOG TUMF Nexus Study Report documents the results of the second major review of the TUMF program conducted in 2008 and 2009. The findings of this report were ultimately adopted by the WRCOG Executive Committee on October 5, 2009. ES.2 Future Growth For previous versions of the TUMF Nexus Study, the primary available source of consolidated demographic information for Western Riverside County was provided by WRCOG iii DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Update the Southern California Association of Governments (SCAG). Recognizing the need to develop a more comprehensive source of socioeconomic data for Riverside County, the Riverside County Center for Demographic Research (RCCDR) was established under the joint efforts of the County of Riverside, the Western Riverside Council of Governments, the Coachella Valley Association of Governments, and the University of California, Riverside in 2005. RCCDR is responsible for establishing and maintaining demographic information and ensuring data consistency through a centralized data source of demographic characteristics. With the availability of demographic information developed specifically for Riverside County, the socioeconomic forecasts developed by RCCDR for Western Riverside County were used for this update of the TUMF Nexus Study and associated fee schedule. A major distinction between the SCAG 2004 RTP data used for the TUMF Nexus Study 2005 Update and the RCCDR data used for this 2009 Update is the change in both the base year and horizon year; from 2000 and 2030 to 2007 and 2035. This shift in the base and horizon year demographic assumptions of the Program carries through all aspects of the Nexus analysis, including the travel demand forecasting, network review and fee calculation. The population of Western Riverside County is projected to increase by 62% in the period between 2007 and 2035, a compounded rate of approximately 1.7% annually. During the same period, employment in Western Riverside County is anticipated to grow by 111% or 2.7% annually. Figure ES.1 illustrates the forecast growth in population, household and employment for Western Riverside County. WRCOG iv DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update • Industrial • Retail • Service • Government Household Type: Single-Family II Multi-Family ^)`) sss. <? oc 1,569 393 Employment Sector: 2.537,583 276,782 552,1 595,039 tr4 cp ,-Prb ,$) Figure ES.1 - Population, Households and Employment in Western Riverside Coun t y ES.3 Need for the TUMF The WRCOG TUMF study area was extracted from the greater regional SCAG model network for the purpose of calculating measures for Western Riverside County only. Measures for the Western Riverside County TUMF study area included total vehicle daily miles of travel (VMT), total daily vehicle hours of travel (VHT), total combined vehicle hours of delay (VHD), and total VMT experiencing unacceptable level of service (LOS E). As a result of the new development and associated growth in population and employment in Western Riverside County, additional pressure will be placed on the transportation infrastructure, particularly the arterial roadways, with the VMT estimated to increase by 55% or 1.6% compounded annually. By 2035, 36% of the total VMT on the regional arterial highway system is forecast to be traveling on facilities experiencing daily LOS E or worse. Without improvements to the arterial highway system, the total vehicle hours of delay (VHD) experienced by area motorists on arterial highways will increase over 5.4% per year. The need to improve these roadways and relieve future WRCOG DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update congestion is therefore directly linked to the future development which generates the travel demand. As population and employment in Western Riverside County grows as a result of new development, demand for regional transit services in the region is also expected to grow. RivTAM outputs indicate that by 2035, regional transit services are forecast to provide approximately 27,969 trips per day. This translates into a forecasted increase of 10,358 trips per day or 59%. A substantial number of the trips will be served by bus transit services within Western Riverside County. The need to provide additional bus transit services within Western Riverside County to satisfy this future demand is therefore directly linked to the future development that generates the demand. The idea behind a uniform mitigation fee is to have new development throughout the region contribute equally to paying the cost of improving the transportation facilities that serve these longer-distance trips between communities. Thus, the fee should be used to improve transportation facilities that serve trips between communities within the region (primarily arterial roadways) as well as the infrastructure for public transportation. The fee should be assessed proportionately on new residential and non-residential development based on the relative impact of each use on the transportation system. ES.4 The TUMF Network The Regional System of Highways and Arterials (also referred to as the TUMF Network) is the system of roadways that serve inter-community trips within Western Riverside County and therefore are eligible for improvement funding with TUMF funds. Transportation facilities in Western Riverside County that generally satisfied the respective guidelines were identified, and a skeletal regional transportation framework evolved from facilities where multiple guidelines were observed. This framework was reviewed by representatives of all WRCOG constituent jurisdictions and private sector stakeholders, and endorsed by the WRCOG Public Works Committee, WRCOG Technical Advisory Committee, TUMF Policy Committee and the WRCOG Executive Committee. The TUMF Network was refined to distinguish between facilities of "Regional Significance" and facilities of "Zonal Significance". The Facilities of Regional Significance have been identified as the "backbone" highway network for Western Riverside County. Facilities of Zonal Significance (the "secondary" network) represent the balance of the Regional System of Highways and Arterials for Western Riverside County. A portion of the TUMF is specifically designated for improvement projects on the backbone system and on the secondary network within the zone in which it is collected. Figure ES.2 illustrates the TUMF improvements to the Regional System of Highways and Arterials. WRCOG VI DRAFT- October 1, 2009 TUMF Nexus Study- 2009 Program Update The Re Arter 'ibrk.:Zii:oir 1 5 PASS ti Mid-County Parkway "../ - 4 Lanes ",/ 6 Lanes 8 Lanes 2 Lanes "/ 4 Lanes Railroad Crossings NORTHWEST SOUTHWEST HEMET/ SAN JACINTO O 1 - $4,550,000 per lane O 2 - $2,120,000 per lane Interchanges O 1 - $43,780,000 O 2 - $22,280,000 O 3 - $10,890,000 • Bridges Railroads Freeways & Highways Lakes & Rivers TUMF Zones Streets & Roads City Boundaries 1NRCOG Boundary WRC.0 Miles onal Sys TUMF em of Highways & etwork Improvements The total cost of improving the TUMF system is $4.26 billion. Accounting for obligated funds and unfunded existing needs, the estimated maximum eligible value of the TUMF Program is $3.77 billion. The maximum eligible value of the TUMF Program includes approximately $3.54 billion in eligible arterial highway and street related improvements and $61.8 million in eligible transit related improvements. An additional $60.0 million is also eligible as part of the TUMF Program to mitigate the impact of eligible TUMF related arterial highway and street projects on critical native species and wildlife habitat, while $107.9 million is provided to cover the costs incurred by WRCOG to administer the TUMF Program. ES.5 TUMF Nexus Analysis There is a reasonable relationship between the future growth and the need for improvements to the TUMF system. These factors include: • Western Riverside County is expected to continue growing as a result of future new development. • Continuing new growth will result in increasing congestion on arterial roadways. • The future arterial roadway congestion is directly attributable to the cumulative regional transportation impacts of future development in Western Riverside County. )=. Capacity improvements to the transportation system will be needed to mitigate the cumulative regional impacts of new development. Roads on the TUMF network are the facilities that merit improvement through this fee program. • Improvements to the public transportation system will be needed to provide adequate mobility for transit-dependent travelers and to provide an alternative to automobile travel. The split of fee revenues between the backbone and secondary highway networks is related to the proportion of highway vehicle travel that is relatively local (between adjacent communities) and longer distance (between more distant communities but still within Western Riverside County). To estimate a rational fee split between the respective networks, the future travel forecast estimates were aggregated to a matrix of trips between zones. The overall result is that 52.0% of the regional travel is assigned to the Backbone network and 48.0% is assigned to the Secondary network. In order to establish the approximate proportionality of the future traffic impacts associated with new residential development and new non-residential development, 2035 Base person trip productions from the Riverside County Traffic Analysis Model (RivTAM) were aggregated by trip purpose. It was concluded that home-based person trips represent 69.2% of the total future person trips, and the non-home-based person trips represent 30.8% of the total future person trips. WRCOG viii DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update ES.6 Fair-Share Fee Calculation The balance of the unfunded TUMF system improvement needs is $3.77 billion which is the maximum value attributable to the mitigation of the cumulative regional transportation impacts of future new development in the WRCOG region, and will be captured through the TUMF Program. By levying the uniform fee directly on future new developments (and indirectly on new residents and new employees to Western Riverside County), these transportation system users are assigned their "fair share" of the costs to address the cumulative impacts of additional traffic they will generate on the regional transportation system. Of the $3.77 billion in unfunded future improvement needs, 69.2% ($2.61 billion) will be assigned to future new residential development and 30.8% ($1.16 billion) will be assigned to future new non-residential development. ES.7 Conclusions Based on the results of the Nexus Study evaluation, it can be demonstrated that there is reasonable relationship between the cumulative regional transportation impacts of new land development projects in Western Riverside County and the need to mitigate these transportation impacts using funds levied through the proposed TUMF Program. Factors that reflect this reasonable relationship include: Western Riverside County is expected to continue growing as a result of future new development. • Continuing new growth will result in increasing congestion on arterial roadways; • The future arterial roadway congestion is directly attributable to the cumulative regional transportation impacts of future development in Western Riverside County; • Capacity improvements to the transportation system will be needed to mitigate the cumulative impacts of new development; ), Roads on the TUMF network are the facilities that merit improvement through this fee program; • Improvements to the public transportation system will be needed to provide adequate mobility for transit-dependant travelers and to provide an alternative to automotive travel. The Nexus Study evaluation has established a proportional "fair share" of the improvement cost attributable to new development based on the impacts of existing development and the availability of obligated funding through traditional sources. The fair share fee allocable to future new residential and non-residential development in Western Riverside County is summarized for differing use types in Table ES.1. WRCOG ix DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Table ES.1 - Transportation Uniform Mitigation Fee for Western Riverside County Land Use Type Units Development Change Fee Per Unit Total Revenue ($ million) Single Family Residential DU 156,745 $8,873 $1,390.8 Multi Family Residential DU 194,934 $6,231 $1,214.6 Industrial SF GFA 57,535,808 $1.73 $99.3 Retail SF GFA 21,758,982 $10.49 $228.2 Service SF GFA 105,461,087 $4.19 $442.3 Government/Public SF GFA 39,061,333 $9.98 $389.9 MAXIMUM TUMF VALUE $3,765.1 WRCOG x DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update 1.0 INTRODUCTION AND PURPOSE OF THE NEXUS STUDY Western Riverside County includes 16 incorporated cities and the unincorporated county covering an area of approximately 2,100 square miles. Until recently, this portion of Riverside County was growing at a pace exceeding the capacity of existing financial resources to meet increasing demand for transportation infrastructure. Although the recent crisis in the mortgage industry and the associated economic downturn has slowed this rate of growth, the region is expected to rebound and the projected growth in Western Riverside County is expected to increase. This increase in growth could significantly increase congestion and degrade mobility if substantial investments are not made in the transportation infrastructure. This challenge is especially critical for arterial roadways of regional significance, since traditional sources of transportation funding (such as the gasoline tax and local general funds) will not be nearly sufficient to fund the needed improvements. Development exactions only provide improvements near the development site, and the broad-based county-level funding sources (i.e., Riverside County's half-cent sales tax known as Measure A) designate only a small portion of their revenues for arterial roadway improvements. In anticipation of the continued rapid future growth projected in Riverside County, several county-wide planning processes were initiated in 1999. These planning processes include the Riverside County General Plan Update, the Community Environmental Transportation Acceptability Process (CETAP) and the Multi-Species Habitat Conservation Plan (MSHCP). Related to these planning processes is the need to fund the mitigation of the cumulative regional transportation impacts of future new development. Regional arterial highways in Western Riverside County are forecast to carry significant traffic volumes by 2035. While some localized fee programs exist to mitigate the local impacts of new development on the transportation system in specific areas, and while these programs are effective locally, they are insufficient in their ability to meet the regional demand for transportation infrastructure. Riverside County Supervisor Buster recognized the need to establish a comprehensive funding source to mitigate the cumulative regional transportation impacts of new development on regional arterial highways. The need to establish a comprehensive funding source for arterial highway improvements has evolved into the development of the Transportation Uniform Mitigation Fee (TUMF) for Western Riverside County. In February 1999, the cities of Temecula, Murrieta and Lake Elsinore, the Western Riverside Council of Governments (WRCOG), the Riverside County Transportation Commission (ROTC) and the Building Industry Association (BIA) met to discuss the concept of a TUMF. The intent of this effort was to have the southwest area of Western Riverside County act as a demonstration for the development of policies and a process for a regional TUMF Program before applying the concept countywide. From February 1999 to September 2000, the Southwest Area Transportation Infrastructure System Funding Year 2020 (SATISFY 2020) Program progressed with policy development, the identification of transportation improvements, traffic modeling, cost estimates, fee scenarios and a draft Implementation Agreement. WRCOG 1 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update In May 2000, Riverside County Supervisor Tavaglione initiated discussions in the northwest area of Western Riverside County to determine the level of interest in developing a TUMF for that area of the county. Interest in the development of a northwest area fee program was high. In August 2000, the WRCOG Executive Committee took action to build upon the work completed in the southwest area for the SATISFY 2020 program and to develop a single consolidated mitigation fee program for all of Western Riverside County. This action was predicated on the desire to establish a single uniform mitigation fee program to mitigate the cumulative regional impacts of new development on the regional arterial highway system, rather than multiple discrete and disparate fee programs with varying policies, fees and improvement projects. A TUMF Policy Committee comprising regional elected officials was formed to recommend and set policies for staff to develop the TUMF Program and provide overall guidance to all other staff committees. The TUMF Program is implemented through the auspices of WRCOG. While the TUMF cannot fund all necessary transportation system improvements, it is intended to address a current transportation funding shortfall by establishing a new revenue source that ensures future development will contribute toward addressing the impacts of new growth on regional transportation infrastructure. Funding accumulated through the TUMF Program will be used to construct transportation improvements such as new arterial highway lanes, reconfigured freeway interchanges, railroad grade separations and new regional express bus services that will be needed to accommodate future travel demand in Western Riverside County. By levying a fee on new developments in the region, local agencies will be establishing a mechanism by which developers and in turn new county residents and employees will effectively contribute their "fair share" toward sustaining the regional transportation system. This TUMF Nexus Study is intended to satisfy the requirements of California Government Code Chapter 5 Section 66000-66008 Fees for Development Projects (also known as California Assembly Bill 1600 (AB 1600) or the Mitigation Fee Act) which governs imposing development impact fees in California. The Mitigation Fee Act requires that all local agencies in California, including cities, counties, and special districts follow two basic rules when instituting impact fees. These rules are as follows: 1) Establish a nexus or reasonable relationship between the development impact fee's use and the type of project for which the fee is required. 2) The fee must not exceed the project's proportional "fair share" of the proposed improvement and cannot be used to correct current problems or to make improvements for existing development. The initial WRCOG TUMF Nexus Study was completed in October 2002 and adopted by the WRCOG Executive Committee in November 2002. Its purpose was to establish the nexus or reasonable relationship between new land development projects in Western Riverside County and the proposed development impact fee that would be used to improve regional transportation facilities. It also identified the proportional "fair share" of the improvement cost attributable to new development. WRCOG 2 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Consistent with the provisions of the Mitigation Fee Act, the WRCOG Executive Committee has established that the TUMF Nexus Study will be reviewed at least every five years. Furthermore, acknowledging the unprecedented and unique nature of the TUMF program, the Executive Committee determined that the first comprehensive review of the program should be initiated within two years of initial adoption of the program primarily to validate the findings and recommendations of the study and to correct any program oversights. The results of the first review of the program were documented in the TUMF Nexus Study 2005 Update adopted by the WRCOG Executive Committee on February 6, 2006. This version of the WRCOG TUMF Nexus Study Report documents the results of the second major review of the TUMF program conducted in 2008 and 2009. The findings of this report were ultimately adopted by the WRCOG Executive Committee on October 5, 2009. A current list of the standing WRCOG TUMF related committees and committee membership is included in Appendix A. In coordination with WRCOG, city and county representatives, developers, and other interested parties reviewed and updated the underlying assumptions of the Nexus Study as part of this comprehensive program review. In particular, the most recent socioeconomic forecasts developed by the Riverside County Center for Demographic Research (RCCDR) were incorporated to correspond with the newly developed Riverside County Traffic Analysis Model (RivTAM) that was also utilized for this update. This use of RivTam and the RCCDR forecasts resulted in a shift of the program base and horizon years from 2000 and 2030 to 2007 and 2035. Additionally, the underlying unit cost assumptions were recreated to utilize the most recent available materials, labor and property cost values. Furthermore, the TUMF network was re-examined based on the RivTAM model results to eliminate those projects having been completed prior to the new program base year, and to more accurately reflect future project needs to address the cumulative regional impacts of new development in Western Riverside County. WRCOG 3 DRAFT-October 7,2009 TUMF Nexus Study - 2009 Update 2.0 FUTURE GROWTH 2.1 Recent Historical Trend Western Riverside County experienced robust growth in the period from the late 1990's to the mid 2000's. The results of Census 2000 indicate that in the year 2000, Western Riverside County had a population of 1.187 million representing a 30% increase (or 2.7% average annual increase) from the 1990 population of 912,000. Total employment in Western Riverside County in 2000 was estimated by the Southern California Association of Governments (SCAG) to be 381,000 representing a 46% increase (or 3.9% average annual increase) over the 1990 employment of 261,000. Despite the recent economic recession and the associated residential mortgage and foreclosure crisis, Western Riverside County continues to grow due to the availability of relatively affordable residential and commercial property, and a well educated workforce. By 2007 the population of the region had grown to 1.569 million, a further 32% growth in population from 2000. Similarly, total employment in the region had also grown from 2000 to 2007 with 516,000 employees estimated to be working in Western Riverside County. This represents a 35% increase from the 381,000 employees working in the region in 2000. 2.2 Available Demographic Data A variety of alternate demographic information that quantifies future population, household and employment growth is available for Western Riverside County. For previous versions of the TUMF Nexus Study, the primary available source of consolidated demographic information for Western Riverside County was provided by SCAG. SCAG is the largest of nearly 700 Councils of Government (COG) in the United States and functions as the Metropolitan Planning Organization (MPO) for six counties in Southern California including Los Angeles, Orange, San Bernardino, Riverside, Ventura and Imperial. SCAG is mandated by the federal government to research and plan for issues of regional significance including transportation and growth management. As part of these responsibilities, SCAG maintains a comprehensive database of regional socioeconomic data and develops demographic projections and travel demand forecasts for Southern California. Recognizing the need to develop a more comprehensive source of socioeconomic data for Riverside County, the Riverside County Center for Demographic Research (RCCDR) was established under the joint efforts of the County of Riverside, the Western Riverside Council of Governments, the Coachella Valley Association of Governments, and the University of California, Riverside in 2005. RCCDR is responsible for establishing and maintaining demographic information and ensuring data consistency through a centralized data source of demographic characteristics. RCCDR subsequently coordinates with SCAG by providing demographic estimates and forecasts for Riverside County as input to the SCAG regional forecasts. The RCCDR forecasts are also used as the basis for the recently created RivTAM. WRCOG 4 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update 2.3 Demographic Assumptions Used for the Nexus Study Analysis With the availability of demographic information developed specifically for Riverside County, the socioeconomic forecasts developed by RCCDR for Western Riverside County were used for this update of the TUMF Nexus Study and associated fee schedule. A major distinction between the SCAG 2004 Regional Transportation Plan (RTP) data used for the TUMF Nexus Study 2005 Update and the RCCDR data used for this 2009 Update is the change in both the base year and horizon year; from 2000 and 2030 to 2007 and 2035. This shift in the base and horizon year demographic assumptions of the Program carries through all aspects of the Nexus analysis, including the travel demand forecasting, network review and fee calculation. The RCCDR 2007 data were compared to the SCAG 2004 RTP data used in the TUMF Nexus Study 2005 Update. As can be seen in Table 2.1 and Figure 2.1, the 2007 data reflects considerable growth in population, households and all employment sectors except retail. It should be noted that the decline in retail is mostly reflective of a revision in data analysis methodology between retail and service uses than any significant change in retail or service employment in Western Riverside County. Table 2.1 - Base Year Socioeconomic Estimates for Western Riverside County Sector 2000 (SCAG) 2007 (RCCDR) Change % Change Population 1,193,862 1,569,393 375,531 31% Households 381,182 530,289 149,107 39% Employees Industrial 140,284 175,571 35,287 25% Retail 74,356 39,576 -34,780 -47% Service 133,567 256,813 123,246 92% Government/Public 39,556 43,954 4,398 11% Total 387,763 515,914 128,151 33% Notes: - Y2000 Population, Household, and Employment data from the SCAG Finalized 2004 RTP - Y2007 Population, Household, and Employment data from RCCDR WRCOG 5 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update O Industrial III Retail OService ta Government 1,600,000 1,400,000 1,200,000 1,000,000 800,000 Employment Sectors: 600,000 400,000 200,000 ,3=\ 40.44 Figure 2.1 - Base Year Socioeconomic Estimates for Western Riverside County Table 2.2 and Figure 2.2 compare the socioeconomic forecasts for the Program horizon years; Year 2030 used in the TUMF Nexus Study 2005 Update with the Year 2035 forecasts used in this study. Most of the difference between the two sets of future socioeconomic data can be attributed to the increase in forecast year from 2030 to 2035. However, the new forecasts incorporate the most recently available data and account for current trends including the influence of the current economic recession on the rate of growth in Western Riverside County. WRCOG 6 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Employment Sectors: 0 Industrial —1 • Retail El Service • Government g o'? \e' „,,cP &6' '10 ) 406.; \c) WRCOG 7 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 2.2 - Horizon Year Socioeconomic Estimates for Western Riverside County Sector 2030 (SCAG) 2035 (RCCDR) Change % Change Population 2,400,017 2,537,583 137,566 6% Households 784,447 881,968 97,521 12% Employees Industrial 278,152 276,782 -1,370 0% Retail 197,494 87,170 -110,324 -56% Service 364,291 595,039 230,748 63% Government/Public 75,729 131,842 56,113 74% Total 915,666 1,090,833 175,167 19% Notes: - Y2030 Population, Household, and Employment data from the SCAG Finalized 2004 RIP - Y2035 Population, Household, and Employment data from RCCDR Figure 2.2 - Horizon Year Socioeconomic Estimates for Western Riverside County Table 2.3 and Figure 2.3 summarize the socioeconomic data obtained from RCCDR and used as the basis for completing this Nexus Study analysis. The RCCDR employment data for 2007 and 2035 was provided for thirteen employment sectors consistent with the California Employment Development Department (EDD) Major Groups including: Farming, Natural Resources and Mining; Construction; Manufacturing; Wholesale Trade; Retail Trade; Transportation, Warehousing and Utilities; Information; Financial Activities; Professional and Business Service; Education and Health Service; Leisure and Hospitality; Other Service; and Government. For the purposes of the Nexus Study, the EDD Major Groups were aggregated to Industrial (Farming, Natural Resources and Mining; Construction; Manufacturing; Wholesale Trade; Transportation, Warehousing and Utilities), Retail (Retail Trade), Service (Information; Financial Activities; Professional and Business Service; Education and Health Service; Leisure and Hospitality; Other Service) and Government/Public Sector (Government). These four aggregated sector types were used as the basis for calculating the fee as described in Section 6.2. Appendix B provides a table detailing the EDD Major Groups and corresponding North American Industry Classification System (NAICS) Categories that are included in each non-residential sector type. Table 2.3- Population, Households and Employment in Western Riverside County Sector Year 2007 Year 2035 Change % Change Population 1,569,393 2,537,583 968,190 62% Households Single-Family 395,409 552,154 156,745 40% Multi-Family 134,880 329,814 194,934 145% Total 530,289 881,968 351,679 66% Employees Industrial 175,571 276,782 101,211 58% Retail 39,576 87,170 47,594 120% Service 256,813 595,039 338,226 132% Government/Public 43,954 131,842 87,888 200% Total 515,914 1,090,833 574,919 111% Notes: - Population, Household, and Employment data from RCCDR WRCOG 8 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update 1,500000 1000,000 500000 Employment Sector: El Industrial Retail € Service B Government 3,000,000 2,500000 2000,000 Household Type: ,FO r • ) oC‘ q0C e.Prb'D ce ,cP xe xsP e<5' 0:-\° o‘' M Multi-Family Figure 2.3 - Population, Households and Employment in Western Riverside County WRCOG 9 DRAFT- October 1, 2009 TUNIF Nexus Study - 2009 Program Update 3.0 NEED FOR THE TUMF All new development has some effect on the transportation infrastructure in a community, city or county due to an increase in travel demand. Increasing usage of the transportation facilities leads to more traffic, progressively increasing traffic congestion and decreasing the level of service (LOS)'. In order to meet the increased travel demand and keep traffic flowing, improvements to transportation facilities become necessary to sustain pre-development traffic conditions. The projected growth in Western Riverside County (62% growth in population and a doubling of employment in under 30 years) can be expected to significantly increase congestion and degrade mobility if substantial investments are not made in the transportation infrastructure. This challenge is especially critical for arterial highways and roadways that carry a significant number of the trips between cities, since traditional sources of transportation improvement funding (such as the gasoline tax and local general funds) will not be nearly sufficient to fund the improvements needed to serve new development. Development exactions generally provide only a fraction of the improvements with improvements confined to the area immediately adjacent to the respective development, and the broad-based county-level funding sources (i.e., Riverside County's half-cent sales tax known as Measure A) designate only a small portion of their revenues for arterial roadway improvements. This section documents the existing and future congestion levels that demonstrate the need for future improvements to the transportation system to specifically mitigate the cumulative regional transportation impacts of new development. It then describes the TUMF concept that has been developed to fund future new developments' fair share of needed improvements. The forecast of future congestion levels is derived from Year 2035 Base travel demand forecasts for Western Riverside County developed using RivTAM. The Year 2035 Base evaluates the effects of 2035 population, employment and resultant traffic generation on the 2007 transportation network. 3.1 Future Highway Congestion Levels To support the evaluation of the cumulative regional impacts of new development on the transportation system in Western Riverside County, existing (2007) and future (2035) traffic data were derived from RivTAM. To quantify traffic growth impacts, various traffic measures of effectiveness were calculated for each of the two scenarios. The WRCOG 1 The Highway Capacity Manual (Transportation Research Board, National Research Council, Washington, D.C., 2000, pp 2-2, 2-3) describes LOS as a "quality measure describing operational conditions within a traffic stream, generally in terms of such service measures as speed and travel time, freedom to maneuver, traffic interruptions, and comfort and convenience." Letters are used to designate each of six LOS (A to F), with LOS A representing the best operating conditions and LOS F representing the worst. According to the Highway Capacity Manual, LOS C or D is typically used in planning efforts to ensure an acceptable operating service for facility users. Therefore, LOS E represents the threshold for unacceptable LOS. WRCOG 10 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update TUMF study area was extracted from the greater regional model network for the purpose of calculating measures for Western Riverside County only. Measures for the Western Riverside County TUMF study area included total vehicle daily miles of travel (VMT), total daily vehicle hours of travel (VHT), total combined vehicle hours of delay (VHD), and total VMT experiencing unacceptable level of service (LOS E). These results were tabulated in Table 3.1. Plots of the Network Extents and screen shots of the respective results dialog boxes are attached in Appendix C. Total Arterial VMT, VHT, VHD and LOS E Threshold VMT were calculated to include all principal arterials, minor arterials and major connectors, respectively. Regional values for each threshold were also calculated for a total of all facilities including arterials, freeways, freeway ramps, freeway connectors and High-Occupancy Vehicle (HOV) lanes. Table 3.1 - Regional Highway System Measures of Performance (2007-2035)* Measure of Performance Dail mor. 2035** % Chan. e _ % Annual VMT - TOTAL ALL FACILITIES 39,187,718 60,772,353 55% 1.64% VMT - FREEWAYS 24,056,704 32,920,502 37% 1.17% TOTAL ARTERIAL VMT 15,131,014 27,851,851 84% 2.29% VHT - TOTAL ALL FACILITIES 1,362,725 2,385,725 75% 2.10% VHT - FREEWAYS 885,753 1,301,737 47% 1.44% TOTAL ARTERIAL VHT 476,972 1,083,988 127% 3.09% VHD - TOTAL ALL FACILITIES 540,363 1,049,291 94% 2.49% VHD -FREEWAYS 457,562 704,578 54% 1.61% TOTAL ARTERIAL VHD 82,801 344,713 316% 5.42% VMT LOS E- TOTAL ALL FACILITIES 25,847,218 50,001,659 93% 2.47% VMT LOS E - FREEWAYS 20,422,906 31,864,589 56% 1.66% TOTAL ARTERIAL VMT w/ LOS E or worse 5,424,312 18,137,070 234% 4.57% % of ARTERIAL VMT w/ LOS E or worse 21% 36% * Based on RivTAM ** Volume is adjusted by PCE factor NOTES: VMT = vehicle miles of travel (the total combined distance that all vehicles travel on the system) VHT = vehicle hours of travel (the total combined time that all vehicles are traveling on the system) VHD = vehicle hours of delay (the total combined time that all vehicles have been delayed on the s y s t e m based on the difference between forecast travel time and free-flow (ideal) travel time) LOS = level of service (based on forecast volume to capacity ratios. Daily capacity was calculated a s t e n t i m e s AM peak hour capacity) LOS E or Worse was determined by a V/C ratio that exceeds the 0.9 threshold as indicated in the Riv e r s i d e County General Plan. WRCOG 11 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update The following formulas were used to calculate the respective values: VMT = Link Distance * Total Daily Volume VHT = Average Loaded (Congested) Link Travel Time *Total Daily Volume VHD = VHT - (Free-flow (Uncongested) Link Travel Time *Total Daily Volume) VMT LOS E or F = VMT (on links where Daily V/C exceeded 0.90) Note: Volume to capacity (v/c) ratio thresholds for LOS E are based on the Transportation Research Board 2000 Edition of the Highway Capacity Manual (HCM 2000) LOS Maximum V/C Criteria for Multilane Highways with 45 mph Free Flow Speed (Exhibit 21-2, Chapter 21, Page 21-3). The calculated values were compared to assess the total change between 2007 and 2035, and the average annual change between 2007 and 2035. As can be seen from the RivTAM outputs summarized in Table 3.1, the additional traffic generated by new development in the region will cause congestion on the highway system to increase almost exponentially in the absence of additional highway infrastructure investments, with the most significant increase in congestion observed on the arterial highway system. Many facilities will experience a significant increase in vehicle delay and deterioration in LOS to unacceptable levels as a result of new development and the associated growth in traffic. According to the Highway Capacity Manual (Transportation Research Board, 2000), LOS C or D are required to "ensure an acceptable operating service for facility users." LOS E is generally recognized to represent the threshold of unacceptable operating service and the onset of substantial systemic traffic congestion. The Congestion Management Program for Riverside County (CMP) published by the Riverside County Transportation Commission (RCTC) in 2003 designates LOS E as the "minimum LOS standard for intersections and segments along the CMP System of Highways and Roadways" in Riverside County. "The intent of the CMP is to more directly link land use, transportation, and air quality, thereby prompting reasonable growth management programs that will effectively utilize new transportation funds, alleviate traffic congestion and related impacts, and improve air quality." 2 The CMP provides a mechanism for monitoring congestion on the highway system and, where congestion is observed, establishes procedures for developing a deficiency plan to address improvement needs. The reactive nature of the CMP to identify and remediate existing congestion differs from the proactive nature of the TUMF Program to anticipate and provide for future traffic needs. For this reason, the TUMF Program follows the guidance of the Highway Capacity Manual in establishing LOS E as the threshold for unacceptable level of service, and subsequently as the basis for measuring system performance and accounting for existing needs. This approach ensures a more conservative accounting of existing system needs as part of the determination of the "fair share" of mitigating the cumulative regional impacts of future new development on the transportation system. 2 Congestion Management Program for Riverside County - Executive Summary (Riverside County Transportation Commission, 2003) Page ES-3, ES-1 WRCOG 12 DRAFT-October 1,2009 TUMF Nexus Study - 2009 Program Update The continuing need for a mitigation fee on new development is shown by the adverse impact that new development will have on Western Riverside County's transportation infrastructure. As a result of the new development and associated growth in population and employment in Western Riverside County, additional pressure will be placed on the transportation infrastructure with the total vehicle miles traveled (VMT) on the Western Riverside County system of arterial roadways estimated to increase by 55% or 1.6% compounded annually. As shown in Table 3.1, the VMT on arterial facilities experiencing LOS of E or worse will increase by 234% or 4.6% compounded annually in Western Riverside County in the period between 2007 and 2035. By 2035, 36% of the total VMT on the regional arterial highway system is forecast to be traveling on facilities experiencing daily LOS E or worse. Without improvements to the arterial highway system, the total vehicle hours of delay (VHD) experienced by area motorists on arterial highways will increase by over 5.4% per year. The combined influences of increased travel and worsened LOS that manifest themselves in severe congestion and delay highlight the continuing need to complete substantial capacity expansion on the arterial highway system to mitigate the cumulative regional impact of new development. The RivTAM outputs summarized in Table 3.1 clearly demonstrate that the travel demands generated by future new development in the region will lead to increasing levels of traffic congestion, especially on the arterial roadways. The need to improve these roadways and relieve future congestion is therefore directly linked to the future development which generates the travel demand. 3.2 Future Transit Utilization Levels In addition to the roadway network, public transportation will play a role in serving future travel demand in the region. Transit represents a critical component of the transportation system by providing an alternative mode choice for those not wanting to use an automobile, and particularly for those who do not readily have access to an automobile. As population and employment in Western Riverside County grows as a result of new development, demand for regional transit services in the region is also expected to grow. Transit trip forecasts were derived from RivTAM. Consistent with the analysis of highway trips described in Section 3.1, year 2007 and year 2035 scenarios were used to represent existing and future transit trips, respectively. Transit person trips internal to Western Riverside County (both originating in and destined for Western Riverside County) were aggregated. The year 2007 and year 2035 aggregated Western Riverside existing and future transit person trips were compared in order to assess the impact of new development on transit demand. The RivTAM outputs indicate that regional transit services accommodated approximately 17,611 trips per day in Western Riverside County in Year 2007. By 2035, regional transit services are forecast to provide approximately 27,969 trips per day. This translates into a forecasted increase of 10,358 trips per day or 59%. WRCOG 13 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update RivTAM outputs for transit person trips in the WRCOG region are summarized in Appendix D. The significant future growth in demand for public transit services is reflective of the cumulative regional impacts of new development, and the associated increase in demand for all types of transportation infrastructure and services. While some of the future transit trips identified by RivTAM will be accommodated by regional transit services such as Metrolink, a substantial number of the trips will be served by bus transit services within Western Riverside County. The need to provide additional bus transit services within Western Riverside County to satisfy this future demand is therefore directly linked to the future development that generates the demand. 3.3 The TUMF Concept A sizable percentage of trip-making for any given local community extends beyond the bounds of the individual community as residents pursue employment, education, shopping and entertainment opportunities elsewhere. As new development occurs within a particular local community, this migration of trips of all purposes by new residents contributes to the need for transportation improvements within their community and in the other communities of Western Riverside County. The idea behind a uniform mitigation fee is to have new development throughout the region contribute uniformly to paying the cost of improving the transportation facilities that serve these longer-distance trips between communities. Thus, the fee should be used to improve transportation facilities that serve trips between communities within the region (primarily arterial roadways) as well as the infrastructure for public transportation. Some roadways serve trips between adjacent communities, while some also serve trips between more distant communities within the region. The differing roadway functions led to the concept of using a portion of the fee revenues for a backbone system of arterial roadways that serve the longer-distance trips (i.e. using TUMF revenues from the entire region), while using a second portion of the fee revenues for a secondary system of arterials that serve inter-community trips (i.e. using TUMF revenues from the communities most directly served by these roads - in effect, a return-to-source of that portion of the funds). Reflecting the importance of public transit service in meeting regional travel needs, a third portion of fee revenues was reserved for improvements to the public transportation infrastructure (i.e. using TUMF revenues from the entire region). Much, but not all, of the new trip-making in a given area is generated by residential development (i.e. when people move into new homes, they create new trips on the transportation system as they travel to work, school, shopping or entertainment). Some of the new trips are generated simply by activities associated with new businesses (i.e. new businesses will create new trips through the delivery of goods and services, etc.). With the exception of commute trips by local residents coming to and from work, and the trips of local residents coming to and from new businesses to get goods and services, the travel demands of new businesses are not directly attributable to residential development. The consideration of different sources of new travel demand WRCOG 14 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update is therefore reflected in the concept of assessing both residential and non-residential development for their related transportation impacts. In summary, the TUMF concept includes the following: • A uniform fee is levied on new development throughout Western Riverside County. • The fee is assessed proportionately on new residential and non-residential development based on the relative impact of each new use on the transportation system. • A portion of the fee is used to fund capacity improvements on a backbone system of arterial roadways that serve longer-distance trips within the region; a portion of the fee is returned to the area in which it was generated to fund capacity improvements on a secondary system of arterial roadways that link the communities in that area; and a portion of the fee is used to fund improvements to the public transportation infrastructure within the region. WRCOG 15 DRAFT - October I, 2009 TUMF Nexus Study - 2009 Program Update 4.0 THE TUMF NETWORK 4.1 Identification of the TUMF Roadway Network An integral element of the initial Nexus Study was the designation of the Western Riverside County Regional System of Highways and Arterials. This network of regionally significant highways represents those arterial and collector highway and roadway facilities that primarily support inter-community trips in Western Riverside County and supplement the regional freeway system. As a result, this system also represents the extents of the network of highways and roadways that would be eligible for TUMF funded improvements. The Regional System of Highways and Arterials (RSHA; also referred to as the "TUMF Network") does not include the freeways of Western Riverside County as these facilities primarily serve longer distance inter-regional trips and a significant number of pass-through trips that have no origin or destination in Western Riverside County 3 . The TUMF Network is the system of roadways that serve inter-community trips within Western Riverside County and therefore are eligible for improvement funding with TUMF funds. The RSHA for Western Riverside County was identified based on several transportation network and performance guidelines as follows: 1. Arterial highway facilities proposed to have a minimum of four lanes at ultimate build-out (not including freeways). 2. Facilities that serve multiple jurisdictions and/or provide connectivity between communities both within and adjoining Western Riverside County. 3. Facilities with forecast traffic volumes in excess of 20,000 vehicles per day by 2035. 4. Facilities with forecast volume to capacity ratio of 0.90 (LOS E) or greater in 2035. 5. Facilities that accommodate regional fixed route transit services. 6. Facilities that provide direct access to major commercial, industrial, institutional, recreational or tourist activity centers, and multi-modal transportation facilities (such as airports, railway terminals and transit centers). Appendix E includes exhibits illustrating the various performance measures assessed during the definition of the RSHA. Transportation facilities in Western Riverside County that generally satisfied the respective guidelines were identified, and a skeletal regional transportation framework evolved from facilities where multiple guidelines were observed. Representatives of all WRCOG constituent jurisdictions reviewed this framework in the context of current local transportation plans to define the TUMF Network, which was subsequently endorsed by the WRCOG Public Works Committee, WRCOG Technical Advisory Committee, TUMF Policy Committee and the WRCOG Executive Committee. 3 Since pass-though trips have no origin or destination in Western Riverside County, new development within Western Riverside County cannot be considered responsible for mitigating the impacts of pass through trips. The impact of pass throughtrips and the associated cost to mitigate the impact of pass through trips and other inter-regional freeway trips) is addressed in the Riverside County Transportation Commission Western Riverside County Freeway Strategic Plan, Phase Ii- Detailed Evaluation and Impact Fee Nexus Determination, Final Report dated May 31, 2008. WRCOG 16 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update The RSHA is illustrated in Figure 4.1. Although the TUMF Network was reviewed as part of the Nexus Update, there were no significant changes to the composition of the network that was originally adopted by the WRCOG Executive Committee. WRCOG 17 DRAFT-October 1,2009 TUMF Nexus Study - 2009 Program Update The Regional System of Highways & Arterials for Western Riverside County "/ TUMF Network Freeways & Highways City Boundaries rri WRCOG Boundary --- Miles 4 8 4.2 Backbone Network and Secondary Network As indicated previously, the TUMF roadway network was refined to distinguish between facilities of "Regional Significance" and facilities of "Zonal Significance." Facilities of Regional Significance were identified as those that typically are proposed to have a minimum of six lanes at general plan build-out 4 , extend across and/or between multiple Area Planning Districts (APD - the five aggregations of communities used for regional planning functions within the WRCOG area) or zones, and are forecast to carry at least 25,000 vehicles per day in 2035. The Facilities of Regional Significance have been identified as the "backbone" highway network for Western Riverside County. A portion of the TUMF fee is specifically designated for improvement projects on the backbone system. The Backbone Network is illustrated in Figure 4.2. Facilities of Zonal Significance (the "secondary" network) represent the balance of the RSHA for Western Riverside County. These facilities are typically within one zone and carry comparatively lesser traffic volumes than the backbone highway network, although they are considered significant for circulation within the respective zone. A portion of the TUMF fee is specifically designated for improvement projects on the secondary network within the zone in which it is collected. The WRCOG zones are illustrated in Figure 4.3. 4 Although facilities were identified based on the minimum number of lanes anticipated at general plan buildout, in some cases it was determined that sufficient demand for all additional lanes facilities may not exist on some facilities until beyond the current timeframe of the TUMF Program (2035). As a result, only a portion of the additional lanes on these facilities have currently been identified for funding with TUMF revenues, reflecting the cumulative impact of new development through the current duration of the TUMF Program. WRCOG 19 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update wRCOG "../e. Backbone Network TUMF Network Freeways & Highways City Boundaries fri WRCOG Boundary TUMF The Backbone Network of Highways & Arterials for Western Riverside County Figure 4 Miles 2 4 8 Figure 4 cJ TUMF Network TUMF Zones Freeways & Highways City Boundaries WRCOG Boundary CENTRAL NORTHWEST HEMET/ SAN JACINTO SOUTHWEST TUP•IF WRCOG 2 8 4 Western Riverside County Area Planning Districts (TUMF Zones) 4.3 Future Roadway Transportation Needs For the purpose of calculating a "fair share" fee for new development, it is necessary to estimate the cost of improvements on the TUMF system that will be needed to mitigate the cumulative regional impacts of future transportation demands created by new development. Estimates of the cost to improve the network to mitigate the cumulative impacts of new development were originally developed based on unit costs prepared for the Coachella Valley Association of Governments (CVAG) Regional Arterial Cost Estimate (RACE)5 , and the WRCOG Southwest District SATISFY 2020 Summary of Cost Estimates 6 (TKC/WRCOG 2000). The RACE cost estimates were developed based on a summary of actual construction costs for projects constructed in Riverside County in 1998. The initial unit cost estimates for the TUMF (based on inflated RACE cost estimates) were reviewed in the context of the SATISFY 2020 Draft Cost Estimates and were consolidated to provide typical improvement costs for each eligible improvement type. The refinement of unit costs was completed to simplify the process of estimating the cost to improve the entire TUMF network. Based on RACE and SATISFY 2020, consolidated cost estimates included typical per mile or lump sum costs for each of the improvement types eligible under the TUMF Program. The resultant revised unit cost estimates were used as the basis for estimating the cost to complete the necessary improvements to the TUMF network to mitigate the cumulative regional transportation impacts of new development. Variations in the consolidated cost estimates for specific improvement types were provided to reflect differences in topography and land use across the region. Unit costs for roadway construction were originally varied to account for variations in construction cost (and in particular, roadway excavation and embankment cost) associated with construction on level (code 1) rolling (code 2) and mountainous (code 3) terrain, respectively. Right-of-way acquisition costs which originally included consideration for land acquisition, documentation and legal fees, relocation and demolition costs, condemnation compensation requirements, utility relocation, and environmental mitigation costs were also varied to account for variations in right-of-way costs associated with urban (developed commercial/residential mixed uses - code 1), suburban (developed residential uses - code 2) and rural (undeveloped uses - code 3) land uses, respectively. Lump sum costs for interchange improvements were originally varied to account for variations in cost associated with new complex, new standard (or fully reconstructed), or major (or partially reconstructed) or minor (individual ramp improvements) interchange improvements. For the purposes of the TUMF Nexus Update, the original unit cost categories were reviewed to generate entirely new unit cost values based on the most recent available construction cost, labor cost and land acquisition cost values. In addition, supplemental categories have been added to the cost assumptions to better delineate 5 Parsons Brinckerhoff/Coachella Valley Association of Governments, 1999, Regional Arterial Cost Estimate (RACE) 6 TKC/Western Riverside Council of Governments, 2000, SATISFY 2020 Summary of Cost Estimates WRCOG 22 DRAFT- October 1, 2009 TUMF Nexus Study- 2009 Program Update the need to mitigate the cumulative multi-species habitat impacts of TUMF arterial highway improvements in accordance with the Riverside County Multiple Species Habitat Conservation Plan (MSHCP), and to account for the costs associated with WRCOG administration of the TUMF Program. Section 8.5.1 of the Riverside County Integrated Project (RCIP) MSHCP adopted by the Riverside County Board of Supervisors on June 17, 2003 states that "each new transportation project will contribute to Plan implementation. Historically, these projects have budgeted 3% - 5% of their construction costs to mitigate environmental impacts." This provision is reiterated in the MSHCP Final Mitigation Fee Nexus Report (David Taussig and Associates, Inc., July 1, 2003) section 5.3.1.2 which states that "over the next 25 years, regional infrastructure projects are expected to generate approximately $250 million in funding for the MSHCP" based on mitigation at 5% of construction costs. To clearly demonstrate compliance with the provisions of the MSHCP, the TUMF Program will incorporate a cost element to account for the required MSHCP contribution to mitigate the multi-species habitat impacts of constructing TUMF projects. In accordance with the MSHCP Nexus Report, an amount equal to 5% of the construction cost for new TUMF network lanes, bridges and railroad grade separations will be specifically included as part of TUMF Program with revenues to be provided to the Western Riverside County Regional Conservation Authority (RCA) for the acquisition of land identified in the MSHCP. The relevant sections of the MSHCP document and the MSHCP Nexus Report are included in Appendix F. Appendix F provides a detailed outline of the assumptions and methodology leading to the revised TUMF unit cost assumptions. Table 4.1 summarizes the unit cost estimate assumptions used to develop the TUMF network cost estimate, including a comparison of the original TUMF unit cost assumptions and the current revised unit cost assumptions developed as part of this review of the TUMF Nexus. Cost estimates are provided in current year values as indicated. To estimate the cost of improving the regional transportation system to provide for future traffic growth from new development, the transportation network characteristics and performance guidelines (outlined in Section 4.1) were initially used as a basis for determining the needed network improvements. The initial list of improvements needed to provide for the traffic generated by new development was then compared with local General Plan Circulation Elements to ensure that the TUMF network included planned arterial roadways of regional significance. A consolidated list of proposed improvements and the unit cost assumptions were then used to establish an initial estimate of the cost to improve the network to provide for future traffic growth associated with new development. WRCOG 23 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 4.1 - Unit Costs for Arterial Highway and Street Construction Component Type Cost Assumptions as published October 18, 2002 Cost Assumptions per 2005 Update February 6, 2006 Cost Assumption per 2009 Nexus Update Description Terrain 1 $550,000 $640,000 $628,000 Construction cost per one mile - level terrain Terrain 2 $850,000 $990,000 $761,000 Construction cost per one mile - rolling terrain Terrain 3 $1,150,000 $1,340,000 $895,000 tceonasi truction cost per lane mile - mountainous Landuse 1 $900,000 $1,820,000 $1,682,000 ROW cost factor per lane mile - urban areas Landuse 2 $420,000 $850,000 $803,000 ROW cost factor per lane mile - suburban areas Landuse 3 $240,000 $485,000 $237,000 ROW cost factor per lane mile - rural areas Interchange 1 n/a $46,500,000 $43,780,000 Comdplexrnew intierchange/ interchange Interchange 2 $20,000,000 $23,300,000 $22,280,000 :siet wt inteirchange/interchange modification Interchange 3 $10,000,000 $11,650,000 $10,890,000 Major interchange improvement total cost Interchange 4 $2,000,000 $2,330,000 n/a Minor interchange improvement total cost Interchange 5 n/a $2,500,000 n/o TUMF arterial to TUMF arterial interchange Bridge 1 $2,000 $2,350 $2,880 Bridge total cost per lane per linear foot RRXings 1 $4,500,000 $5,240,000 $4,550,000 New Rail Grade Crossing per lane RRXing 2 $2,250,000 $2,620,000 $2,120,000 Existing Rail Grade Crossing per lane Intersection 1 $300,000 $350,000 $380,000 Upgrade existing network-to-network intersection Planning 10% 10% 10% Planning, preliminary engineering and environmental assessment costs based on construction cost only Engineering 25% 25% 2 Project study report, design, permitting and construction oversight costs based on construction cost only Contingency 10% 10% 10% Contingency costs based on total segment cost Administration n/a n/a 3% TUMF Program administration based on total TUMF eli ible network cost MSHCP n/a 5% 5% TUMF component of MSHCP based on total TUMF eligible construction cost *RRXing = Railroad Crossing A peer review process utilizing real world experience and perspectives from both the private and public sectors was critical in developing a realistic network of proposed improvements to mitigate the additional traffic resulting from future development in Western Riverside County. Representatives of private development firms and the BIA have continued to participate in the process of developing and updating the TUMF Program. This involvement has included active participation of private developer staff at various workshops conducted at critical milestone points in the process of completing the Nexus update. As part of the 2009 Program update, the list of proposed improvements included in the initial Nexus Study and validated during the 2005 update was reviewed for accuracy and, where necessary, amended to either remove projects completed prior to the new base year of the TUMF Program (2007), remove projects that are no longer needed based on changes in the patterns of growth within the region, or add further improvements to accommodate additional projected traffic growth associated with new development. The specific network changes were screened by the WRCOG Public Works Committee for consistency with TUMF network guidelines and were WRCOG 24 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update subsequently reviewed by representatives of the public and privates sectors at a series of workshop meetings conducted in June 2009. Based on the findings of the network screening and workshop reviews, elements of specific projects were revised to reflect necessary network corrections, modifications to project assumptions and to incorporate a limited number of additional segment improvements following further review and recommendation through the WRCOG standing committee structure. A matrix summarizing the disposition of the requests received as part of the TUMF Nexus Update was developed and is included in Appendix G. Eligible arterial highway and street improvement types to mitigate the cumulative regional transportation impacts of new development on Network facilities include: 1. Construction of additional Network roadway lanes; 2. Construction of new Network roadway segments; 3. Expansion of existing Network bridge structures; 4. Construction of new Network bridge structures; 5. Expansion of existing Network interchanges with freeways; 6. Construction of new Network interchanges with freeways; 7. Grade separation of existing Network at-grade railroad crossings; 8. Expansion of existing Network-to-Network intersections. All eligible improvement types provide additional capacity to Network facilities to accommodate future traffic growth generated by new development in Western Riverside County. Following the comprehensive update of the TUMF Program, the estimated total cost to improve the RSHA for Western Riverside County is $3.92 billion with this cost including all arterial highway and street planning, engineering, design, right-of-way acquisition and capital construction costs, but not including transit, MSHCP or program administration costs that will be subsequently described. It should be noted that the full cost to improve the TUMF Network cannot be entirely attributed to new development and must be adjusted to account for the previous obligation of other funds to complete necessary improvements and unfunded existing needs. Sections 4.5 and 4.6 describe the adjustments to the total TUMF Network improvement need to account for existing needs and obligated funds. In addition to the arterial highway and street improvement costs indicated above, the TUMF Nexus Update included specific consideration for the TUMF Program obligation to the MSHCP program to mitigate the impact of TUMF network improvements on species and habitat within Western Riverside County. The TUMF obligation to MSHCP was calculated at a rate of 5% of the total construction (capital) cost of new lane segments, bridges and railroad grade separations on the TUMF Network. The total TUMF obligation to the MSHCP as indicated in the TUMF Network cost fee table is approximately $62.4 million. The TUMF Nexus Study 2009 Program Update similarly includes specific consideration of the costs associated with WRCOG administration of the TUMF Program. The average cost for WRCOG to administer the TUMF Program was calculated at a rate of 3% of the WRCOG 25 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update total eligible cost of new lane segments (including interchanges, bridges and railroad grade separations) on the TUMF Network and new transit services. The total cost for WRCOG administration of the TUMF Program as indicated in the TUMF Network cost fee table is approximately $107.9 million. The detailed TUMF network cost calculations are provided in Section 4.7, including each of the individual segments and cost components considered as part of the TUMF Program, and the maximum eligible TUMF share for each segment following adjustments for obligated funding and unfunded existing needs as described in subsequent sections. 4.4 Public Transportation Component of the TUMF System In addition to the roadway network, public transportation will play a role in serving future travel demand in the region. Public transportation serving inter-community trips is generally provided in the form of public transit bus services and in particular express bus services between strategically located community transit centers. Transit needs to serve future travel in Western Riverside County via public transit bus were provided by the Riverside County Regional Transportation Agency (RTA). The identified public transit needs include transit centers, express bus stop upgrades, and capital improvements to develop express bus service within the region. Metrolink commuter rail service improvements were not included in the TUMF Program as they typically serve longer inter-regional commute trips equivalent to freeway trips on the inter-regional highway system. Updated cost estimates for improving the infrastructure serving public transportation, including construction of transit centers, express bus stop upgrades, and capital improvements needed to develop express bus service within the region were provided by RTA. The updated transit unit cost data provided by RTA are shown in Table 4.3. Table 4.3 - Unit Costs for Transit Capital Expenditures Component Type Cost Assumptions as published October 18, 2002 Cost Assumptions per 2005 Update February 6, 2006 Cost Assumptions per 2009 Nexus Update Description Transit Center $6,000,000 $6,990,000 $5,655,000 Regional Transit Centers Bus Stop $10,000 $11,600 $27, C100 Bus Stop Amenities Upgrade Service Capital $540,000 $630,000 $550,000 Regional Corridor Transit Service Capital Vehicle Fleet $325,125 $380,000 $550,000 Regional Flyer Vehicle Fleet The estimated total cost for future transit services to accommodate forecast transit demand is approximately $166.9 million with this cost including all planning, engineering, design and capital improvement costs. Detailed transit component cost estimates are included in Section 4.7. WRCOG 26 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update 4.5 Existing Obligated Funding For some of the facilities identified in the TUMF network, existing obligated funding has previously been secured through traditional funding sources to complete necessary improvements. Since funding has been obligated to provide for the completion of needed improvements to the TUMF system, the cost of these improvements will not be recaptured from future developments through the TUMF Program. As a result, the TUMF network cost was adjusted accordingly to reflect the availability of obligated funds. To determine the availability of obligated funds, each jurisdiction in Western Riverside County was asked to review their current multi-year capital improvement programs to identify transportation projects on the TUMF system. A detailed table identifying the obligated funds for segments of the TUMF network is included in Appendix H. A total of $270.8 million in obligated funding was identified for improvements to the TUMF system. The estimated TUMF network cost was subsequently reduced by this amount. 4.6 Unfunded Existing Improvement Needs A review of the existing traffic conditions on the TUMF network (as presented in Table 3.1) indicates that some segments of the roadways on the TUMF system currently experience congestion and operate at unacceptable levels of service. In addition, demand for inter-community transit service already exists and future utilization of proposed inter-community transit services will partially reflect this existing demand. The need to improve these portions of the system is generated by existing demand, rather than the cumulative regional impacts of future new development, so future new development cannot be assessed for the equivalent cost share of improvements providing for this existing need. In the initial TUMF Nexus Study, the cost of existing improvement needs was estimated by identifying the roadway segments on the TUMF network that operate at LOS E or F according to the modeled 2000 base year volumes. The application of the LOS E threshold is consistent with national traffic analysis guidelines that stipulate LOS D as the minimum acceptable LOS for arterial roadway facilities. The cost to improve these roadway segments with existing unacceptable LOS was calculated using the same method applied to estimate the overall system improvement cost. This method estimated the share of the particular roadway segment (including all associated ROW, interchange, structure and soft costs) that was experiencing unacceptable LOS, and reduced the estimated cost to reflect the relative share. The adjusted value reflected the maximum eligible under the TUMF Program to improve only those portions of the segment (and the relative share of associated improvement costs) that were not experiencing an existing need and were therefore considered to be exclusively addressing the cumulative impacts of new development. By the application of this methodology, the initial TUMF Nexus Study did not account for the incremental cumulative impact of new development on those segments with an identified existing need. For this reason, the methodology to account for existing need was reviewed as part of the TUMF 2005 update to provide for the inclusion of WRCOG 27 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update incremental traffic growth on those segments with existing need. The following approach was applied to account for this oversight in the initial existing need methodology: 1. Identify those segments with an existing need by evaluating the RivTAM base year model networks and delineating those segments included on the TUMF RSHA that have a daily volume to capacity (V/C) ratio exceeding 0.90. 2. Calculate the initial cost of addressing the existing need by estimating the share of the particular roadway segment 'new lane' cost (including all associated ROW and new lane construction soft costs but not including interchange, railroad grade separation and bridge costs and their associated soft costs). It should be noted that where the TUMF network identifies more than one new lane in each direction, only the first lane in each direction is considered to be addressing existing need and any additional new lanes would be fully eligible under TUMF for addressing exclusively future needs. 3. Determine the incremental growth in V/C by comparing the weighted average base year V/C for the TUMF segment (delineated under step 1) with the RivTAM 2035 baseline assigned model network V/C for the corresponding segments. 4. Determine the proportion of the incremental growth attributable to new development by dividing the result of step three with the total 2035 baseline V/C in excess of LOS E. 5. For those segments experiencing a net increase in V/C over the 2007 base year, 'discount' the cost of existing need improvements by the proportion of the incremental V/C growth through 2035 compared to the 2007 base year V/C (up to a maximum of 100%). The unfunded cost of existing highway improvement needs (including the related MSHCP obligation) totals $225.2 million. Appendix H includes a detailed breakdown of the existing highway improvement needs on the TUMF network, including the associated unfunded improvement cost estimate for each segment experiencing unacceptable LOS. For transit service improvements, the cost to provide for existing demand was determined by multiplying the total transit component cost by the share of future transit trips representing existing demand. The cost of existing transit service improvement needs is $105.1 million representing 37% of the TUMF transit component. Appendix H includes tables reflecting the calculation of the existing transit need share and the existing transit need cost. 4.7 Maximum TUMF Eligible Cost A total of $270.8 million in obligated funding was identified for improvements to the TUMF system. Since these improvements are already funded with other available WRCOG 28 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update revenue sources, these projects cannot also be funded with TUMF revenues. Furthermore, the total cost of the unfunded existing improvement needs is $330.1 million. These improvements are needed to provide for existing transportation needs and therefore their costs cannot be assigned to new development through the TUMF. Based on the estimated costs described in Sections 4.3 and 4.4, the total value to complete the identified TUMF network and transit improvements is $4.26 billion. Having accounted for obligated funds and unfunded existing needs as described in Sections 4.5 and 4.6, respectively, the estimated maximum eligible value of the TUMF Program is $3.77 billion. The maximum eligible value of the TUMF Program includes approximately $3.54 billion in eligible arterial highway and street related improvements and $61.8 million in eligible transit related improvements. An additional $60.0 million is also eligible as part of the TUMF Program to mitigate the impact of eligible TUMF related arterial highway and street projects on critical native species and wildlife habitat, while $107.9 million is provided to cover the costs incurred by WRCOG to administer the TUMF Program. Figure 4.4 illustrates the various improvements to the RSHA included as part of the TUMF network cost calculation. Table 4.3 summarizes the TUMF network cost calculations for each of the individual segments. This table also identifies the maximum eligible TUMF share for each segment having accounted for obligated funding and unfunded existing need. A detailed breakdown of the individual cost components and values for the various TUMF Network segments is included in Appendix H. Table 4.4 outlines the detailed transit component cost estimates. It should be noted that the detailed cost tables (and fee levels) are subject to regular review and updating by WRCOG and therefore WRCOG should be contacted directly to obtain the most recently adopted version of these tables (and to confirm the corresponding fee level). WRCOG 29 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update gur e 4 4 Ultimate Number of Lanes "V 2 Lanes 4 Lanes "00# 6 Lanes le\e/ 8 Lanes Mid-County Parkway (.1 2 Lanes „."../ 4 Lanes , Railroad Crossings -111 Interchanges O 1 - $4,550,000 per lane O 2- $2,120,000 per lane 1 - $43,780,000 2 - $22,280,000 3 - $10,890,000 Bridges Railroads Freeways & Highways Lakes & Rivers r TUMF Zones Streets & Roads City Boundaries WRCOG Boundary HEMET/ SAN JACINTO 2 4 8 TUMF WI! COG The Regional System of Highways & ,Arterials- TUMF Network Improvemen Table 4.4 - TUMF Network Cost Estimates AREA PLAN 01ST CITY STREETNAME SE6MENTFROM ISEGMENTTO MILES TOTAL COST MAXIMUM TOW SHARE Central Menifee Ethorrac Goetz Murrieta 099 $3.540,000 $1540 000 Central Menifee Ethanac Murrieta 1-215 0.90 $19,019,000 $19,019,000 Central Menlfee Goetz Case Ethanac 2.00 58,017.000 $7065030 Central Menifee Mentfee 59-74 (Pinacate) Simpson 2.49 $7,503,000 $7,503,000 Central Menifee Menifee Holland Garbani 1.03 $0 $0 Central Menifee Menifee Garbani Scott 1.00 $2,339,000 $2.339,000 Central Menifee Menifee Simpson Aldergate 0,64 $3,000.500 $3,000000 Central Menifee Menifee Aldergate Newport 0.98 $0 $0 Central Menifee Menifee Newport Holland 1.07 $0 $0 Central Menifee Newport Goetz Murrieta 1.81 $2,546,000 $2,546,000 Central Menitee Newport Murrieta 1-215 2.05 $37,104,000 $37.104,000 $13,130.000 $11130,000 Central Menifee Newport 1-215 Menifee 0.95 $2,220,000 $2,171,000 Central Menlfee Scott 1-215 Briggs 2.04 $41,870,000 $40,533,000 Central Menifee Scott Murrieta 1-215 1.94 $9,105,000 $9,105,000 Central Menifee (14-74 Matthews Briggs 1.89 $4,433 000 $4,433,000 Central Moreno Valley Alessandro 1-215 Perris 3.71 55122000 $5,322,000 Central Moreno Valley Alessandro Perris Nason 2.00 $12,198,001 $12,198,000 Central Moreno Valley Alessandro Nason Moreno Beach 0,99 $3,556,000 $3,556,000 Central Moreno Valley Alessandro Moreno Beach Gilman Springs 4.13 $9,681,000 $9,6131,000 Central Moreno Valley Gilman Springs 59-60 Alessandro 1.67 $19,708.000 $19,207,000 Central Moreno Valley Perris Reche Vista konwood 2.20 $7.099.000 $7,099,000 Central Moreno Valley Perris Ironwood Sunnymead 0.52 $16,162,000 $16,162,000 Central Moreno VaRey Perris Sunnymead Cactus 2.00 $1,434,000 $1,366.000 Central Moreno Valley Perris Cactus Harkey Knox 3.50 $18,855.000 $13.951,000 Central Moreno Valley Roche Vista Reche Canyon Heacock 1.66 $6,606,000 $5.097.000 Central Perris llth/Case Perris Goetz 0.30 $1.078,000 $1,078,000 Central Perris Ethanac Keystone Goetz 2.24 $13,609,000 $13,609,000 Central Perris Ethanac 1-215 Sherman 0.35 $1,252,000 $1,252,000 Central Perris Mid-County 1-215 Rider 4.55 $82,321,000 $82.321,000 Central Perris Perris Harley Knox Ramona 1.00 $4,667,000 $3,393,000 Central Perris Perris Ramona Cii7US 2,49 $5.841,000 $5,831,000 Central Perris Perris Citrus Nuevo 0.50 $0 Central Perris Perris Nuevo 11th 1.75 $8,774,000 $6.023,000 Central Perris Ramona 1-215 Perris 1.47 537,573000 $17,508,000 Central Perris Rarnona Perris Evans 1.00 $6,079,000 $6,079,000 Central Perris Ramona Evans Rider 2.09 $7,493,000 $7,493,000 Central Perris 09-74 (4th) Ellis 1-215 2.29 $32,306000 $32,306,000 Central Unincorporated Ethanac 08-74 Keystone 1.07 $5,013,000 $5,013,000 Central Unincorporated Ethanac Sherman Matthews 0.61 $27,827,000 $27,827,000 Central Unincorporated Gilman Springs Alessandro Bridge 4.98 $13,577,000 $10.039.000 Central Unincorporated Menifee Ramona SR-74 (Pinacate) 6.52 $15,273,000 515,273,00(1 Central Unincorporated Mid-County Rider Bridge 6.92 $21,230000 $21.230,000 Central Unincorporated Ramona Rider Pico 0.97 $2.273,000 $2,273,000 Central Unincorporated Ramona Pico Bridge 5.95 $49,609,000 $47,703,000 Central Unincorporated Roche Canyon San Bernardino County Reche Vista 3,35 $20,890.000 $17,540.000 Central Unicorporated Scott Briggs SP-79 Winchester) 3.04 $14,243,000 $14.243,000 Central Unincorporated SR-74 Ethanac Ellis 2.68 $0 $0 Northwest Corona Foothill Paseo Grande Lincoln 2.60 $21.219,000 -$6,810,000 Northwest Corona Foothill Lincoin California 2.81 $0 $0 Northwest Corona Foothill California 1-15 0.89 $3,188,000 $3,168,000 Northwest Corona Green River 08-91 Dominguez Ranch 0.52 $1,860,000 $1190,000 Northwest Corona Green River Dominguez Ranch Palisades 0,56 $2_224,000 $2.1913000 Northwest Corona Green River Palisades Paseo Grande 2.01 $0 $0 Northwest Riverside Alessandro Arlington Trautwein 2.21 $0 $0 Northwest Riverside Arlington North Magnolia 5.92 $0 $0 Northwest Riverside Arlington Magnolia Alessandro 2.02 $22,899,000 $20,625.000 Northwest Riverside Van Buren Santa Ana River SR-91 3,44 $34.857,000 $30,923.000 Northwest Riverside Von Buren SP-91 Mockingbird Canyon 3.10 $10,706,000 $5.197,000 Northwest Riverside Van Buren Wood Trautwein 0.43 $0 $0 Northwest Riverside Van Buren Trautwein Orange Terrace 1.27 $3,568,000 $3.514,000 Northwest Unincorporated Alessandro Trovtwein Vista Grande 1.22 $0 Northwest Unincorporated Alessandro Vista Grande 1-215 1.26 $0 Northwest Unincorporated Cajalco El Sobrante Harley John 0.76 $4,127,000 $3,573,000 Northwest Unincorporated Cafalco Harley John Harvil 5.79 $41,545,000 $40,650,000 Northwest Unincorporated Calatco Harvil 1-215 0,28 $666,000 $666,000 Northwest Unincorporated Cafalco 1-15 Temescal Canyon 0.66 $34,674,000 $9,431.000 Northwest Unincorporated Cajalco Temescal Canyon La Sierra 3.21 $22.934,000 $22,934,000 Northwest Unincorporated CCOICO La Sierra El Sobrante 6.11 $38.089.000 $38.089,000 Northwest Unincorporated Schliesman San Bernardino County Harrison 1,53 $14,342,000 $14.342,000 Northwest Unincorporated Schliesman Harrison Sumner 0.50 $3,576000 $3,576,000 Northwest Unincorporated Schliesman Sumner Cleveland 0.50 $5,381,000 $5,381,000 Northwest Unincorporated Schliesman Cleveland A Street 0.23 $2,477,000 $2,477,000 Northwest Unincorporated Schliesman A Sheet Hamner 0.27 $1,961,000 $1,961.000 Northwest Unincorporated Schiiesman Hamner 1-15 0,31 $66.797,000 $66,797,000 Northwest Unincorporated Schliesman 1-15 Arlington 197 $25,943.000 $25,943,000 Northwest Unincorporated Van Buren SR-60 Bellearave 1.43 $5.125,000 $2,192.000 Northwest Unincorporated Van Buren Bellegrave Santa Ana River 3.60 $12.900,000 $5,569,000 Northwest Unincorporated Van Buren Mockingbird Canyon Wood 4.41 $15,811,000 $12,345,000 Northwest Unincorporated Von Buren Orange Terrace 1-215 1.89 $70,246,000 $68,716,000 WRCOG 31 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 4.4 - TUMF Network Cost Estimates (continued) AMA PLAN Dint CITY StREEINAME SEGMENTFROM SEGMENTTO MILES TOTAL COST MAXIMUM /UMF SHAM Pass Beaumont Beaumont Oak Valley (14th) 1-10 1.37 $0, $0 Pass Beaumont Potrero Oak Valley /San Timoteo Canyon 4th 1.17 $69,189,000 $0 Pass Beaumont 019-79 (Beaumont) 1-10 Mellow 0.80 $15,791,000 $0 Pass Unicorporated 08-79 )Beaumont( Mellow California 0.38 $0 $0 Pass Unincorporated Potrero 4th st 0.45 52,109.000 52.109,000 Pass Unincorporated Potrero 1st 09-79 (Beaumont) 2.03 $11,098000 $11,098,000 Pass Unincorporated 09-79 (Lamb Canyon) California Gilman Springs 4.87 $0 $0 San Jacinto Hemet Domenigoni Warren Sanderson 1.77 $4,151,000 $4,151,000 San Jocinto Hemet Domenigoni Sanderson State 2.14 50 $0 San Jacinto Hemet 019-74 Winchester Warren 2,59 $9,281,000. $7,335,005 San Jacinto San Jacinto Mid-County Warren Sanderson 1/3 $6,196,000 $6,196,000 Son Jacinto San Jacinto Ramona Warren Sanderson 173 $6.196.000 $6,196,000 San Jacinto San Jacinto Ramona Sanderson State 2.39 $17,131,000 $13,661,000 Sari Jacinto San Jacinto Ramona State Main 2.66 $9,556,000 $9,301,000 San Jacinto San Jaclrsto Ramona Main Cedar 2,08 $17,430,000 $17,430,000 San Jacinto San Jacinto Ramona Cedar 08-74 1.10 $0 San Jacinto Unincorporated Domenigoni 09-79 (Winchester) Warren 3.10 $9,763.000 $8,788,000 San Jacinto Unincorporated Gilman Springs Bridge Sanderson 2.95 $6,908,000 $6,908,000 San Jacinto Unincorporated Mid-County Bridge Warren 2,35 $5.505,000 $5,505.000 Sari Jacinto Unincorporated Ramona Bridge Warren 2.35 $11,006,000 $11.006,000 San Jacinto Unincorporated 08-74 Briggs 09-79 (Winchester) 3,53 $8,259,000 $8,259000 San Jacinto Unincorporated SR-79 (Hemet Bypass) 09-74 (Florida) Domenigonl 3.22 $62,453,000 $62,453,000 San Jacinto Unincorporated SR-79 /Hornet Bypass) Domenigoni Winchester 1.50 $10,542,000 $10.542,000 San Jacinto Unincorporated 08-79 (San Jacinto Bypass) Ramona 09-74 (Florida) 6.50 $77,987,006 $77.987,000 San Jacinto Unincorporated 08-79 )Sanderson) Gilman springs Ramona 1.92 526208000 $24,508.000 San Jacinto Unincorporated 09-79 /Winchester! Domenigonl Keller 4.90 $35,165,000 $23.047,000 Southwest Canyon Lake Goetz Railroad Canyon Newport 0.50 $1652000 $2.685,000 Southwest Canyon Lake Railroad Canyon Canyon Kis Goetz 1.95 $7,733,000 $7,508.000 Southwest Lake Elsinore Railroad Canyon 1-15 Canyon Hills 2,29 $34,989,000 $34,989,000 Southwest Murrieta Clinton Keith 1-15 Copper Craft 2.48 $27.411.000 $26,786,000 Southwest Munieta Clinton Keith Copper Craft Toulon 0.83 $0 $0 Southwest Murrieta Clinton Keith Toulon 1-215 0.83 534,247.000 534.247,000 Southwest Murrieta Clinton Keith 1-215 Meadowlark 0,75 $1,751,000 51,751,000 Southwest Murriela French Valley (Oate) 09-79 (Winchester) Margarita 1.03 53,702.000 $3,702.000 Southwest Munleta Meadowlark iMenifee) Keller Clinton Keith 2.00 $9,370,000 $9,370,000 Southwest Murrieta Menifee Scott Keller 1.08 50 $0 Southwest Temecula French Valley Margarita Ynez 0.91 $0 $0 Southwest Temecula French Valley Ynez Murriela Creek 1.29 577,748.000 564.827,000 Southwest Temecula French Valley Murrieto Creek Rancho California 2.36 $23,129,000 523,129,000 Southwest Temecula French Valley Rancho California 1-15 (Front) 186 553,579000 $37,201,000 Southwest Temecula 58-79 (Winchester) Murrieta Hot Springs Jefferson 2.70 $15,791,000 515,791.000 Southwest Wildornar Bundy Canyon 1-15 Sunset 3.42 $34,443,000 $34,443,000 Southwest Wildomar Bundy Canyon Sunset Murrieta 1.01 $4.714,000 $4,714.000 Southwest Wildomar Clinton Keith Palomar kl 5 0.55 $0 Southwest Unincorporated Benton SR-79 Eastern Bypass 240 55,630,000 55,630,000 Southwest Unincorporated Clinton Keith Meadowlark 08-79 2.54 547,919,000 $47,919,000 Southwest Unincorporated Newport Menifee Lindenberg. 0.77- $0 $0 Southwest Unincorporated Newport Undenberger SR-79 (Winchester) 3.58 $0 $0 Southwest Unincorporated 09-74 1-15 Ethanac 4.89 545,659,000 $45.572,000 Southwest Unincorporated 08-79 Eastern Bypass/Washir 08-79 (Winchester) Sorel 4,52 $11,423,000 511.423,000 Southwest Unincorporated 08-79 Eastern Bypass) Borel Vino 4.04 $25,386,000 $25,386,000 Southwest Unincorporated 08-79 Eastern Bypass/Anzal Vino 08-79 (Constance) 4.49 512,250000 $12,250.000 Southwest Unincorporated 08-79 Eastern Elypass/Anza) 59-79 (Constance) Santa Rita 1.14 $7,891,000 $7,891,000 Southwest Unincorporated 58-79 Eastern Bypass/Anza) Santa Rita Fairview 1.77 59,659000 $9,659,000 Southwest Unincorporated SR-79 Eastern Bypass) Fairview Pala 1.48 58,076,000 $8,076.000 Southwest Unincorporated S8-79 Eastern Bypass) Pala 1-15 4/1 $61,917,000 561.917,000 Southwest Unincorporated 08-79 Winchester) Kell. Thompson 2.47- $8,845,000 $8,845,000 Southwest Unincorporated 08-79 Winchester) Thompson La Alba 1.81 $6,499,000 $3.623,000 Southwest Unincorporated 08-79 Winchester) La Alba Hunter 0.50 $1,805,000 $762,000 Southwest Unincorporated 09-79 Winchester) Hunter Murrieta Hot Springs 1.14 $0 Subloki 295.15 $2,099.632.000 $1.854,504,000 WRCOG 32 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 4.4- TUMF Network Cost Estimates (continued) AREA PLAN 81ST CITY STREETNAME SEGMENTFROM SEGMENTIO MILES TOTAL COST MAXIMUM TUMF SHARE Central Menifee Briggs Newport Scott 3.05 $7,146,000 $7,146,000 Central Menifee Goetz Juanita Lesser Lane 2.61 $6,112000 $5930.000 Central Menifee Goetz Newport Juanita 1.36 $0 $0 Central Menifee Holland Antelope Haun 1.00 511022,000 $13,022.000 Central Menifee McCall Menifee 58 79 (Winchester) 445 $10,417,000 $10,417,000 $6,033.000 Central Menlfee McCall 512-79 (Winchester) Warren 2.58 $6,033,000 Central Menifee McCall 1-215 Aspel 1.23 518,666.000 $18,666,000 Central Menifee McCall Asp& MenIfee 095 $4,469,000 $4,469,000 Central Menifee Murrieta Ethanac McCall 1.95 $3,244,000 $3,244,000 Central MenIfee Murrieta McCall Newport 2.03 $0 $0 Central Menifee Murrleta Newport Bundy Canyon 3.00 $0 $0 Central Moreno Valley Cactus 1-215 Heacock 1.81 $37,173.000 $37,173,000 Central Moreno Valley Eucalyptus 1-215 Towngate 1.00 $2.691,000 $2,691,000 Central Moreno Valley Eucalyptus Towngate Frederick 0.67 $0 $0 Central Moreno Valley Frederick 58-60 Alessandro 1.55 50 Central Moreno Valley Heacock Cactus San Michele 2.79 $9,762,000 $6,726,000 Central Moreno Valley Heacock Reche Vista Cactus 4.73 $0 $0 Central Moreno Valley Heacock San Michele Harley Knox 0.74 $2,992,000 $2,476,000 Central Moreno Valley konwood SR-60 Redlands 8.46 $35,509.000 $35,509,000 Central Moreno Valley Lasselle Eucalyptus Alessandro 1.00 $2.145.000 $2.145.000 Central Moreno Valley Laxselle Alessandro John F Kennedy 1.00 $2.871,000 $2,871,000 Central Moreno Valley Lasselle John F Kennedy Oleander 114 $0 Central Moreno Valley Moreno Beach Reche Canyon 59-60 1.37 $37,210000 $37,210,000 Central Moreno Valley Nason konwood Alessandro 202 $37,376,000 $37,376,000 Central Moreno Valley Pigeon Pass Ironwood 59-60 0.43 $0 $0 Central Moreno Valley Pigeon Pass/CETAP Corridor Cantarini konwood 3.23 52.317,000 $2.317,000 Central Moreno Valley Roche Canyon Reche Vista Moreno Beach 4.02 $0 $0 Central Moreno Valley Redlands Locust Alessandro 2.68 $41,922,000 $41,226,000 Central Moreno Valley Sunnyrnead Frederick Pettis 2.02 $0 50 Central Perris Ellis 08-74 (4th) 1-215 1,92 $52.378.000 $52,378,000 Central Perris Evans Placentia Nuevo 1.50 51,968,000 $1,968,000 Central Perris Evans Morgan Ramona 0.59 $1,388,000 $1,388000 Central Perris Evans Nuevo 1-215 1.99 $16.024000 $16.024,000 Central Perris Evans Oleander Ramona 0_99 10 Central Perris Evans Placentia Rider 0.58 $0 $0 Central Perris Evans Rider Morgan 0.49 $1,158,000 51,158,000 Central Perris Goetz Lesser Ethan= 1.04 $2.438,000 $1,957,000 Central ' Perris Harley Knox 1-215 Indian 1,53 $21,286,000 $21,286,000 Central Perris Harley Knox Indian Perris 0.50 5447,000 $447,000 Central Perris Harley Knox Perris Evans 1.03 $7,391,000 $7,391,000 Central Pettis Nuevo 1-215 Murrieta 1.36 $20.658,000 $20,658,000 Central Perris Nuevo Munieta Dunlap 1.00 $4,313,000 $4,313,000 Central Perris Placentia 1-215 Indian 0.37 534,039,000 $34,039.000 Central Perris Placentia Indian Redlands 100 52,339,000 $2,339,000 Central Perris Placentia Redlands Wilson 0.25 $0 Central Perth Placentia Wilson Evans 0,75 $8,540,000 $8.540.000 Central Perris 58-74 {Matthews) 1-215Imostly in Pettis) Ethanac 1.25 $15,791,000 $15,791,000 Central Unincorporated Briggs 08-74 lPinacate) Simpson 2.50 $11,713,000 $11.713.000 Central Unincorporated Briggs Simpson Newport 1.53 58,585,000 $8,585,000 Central Unincorporated Center Wain) 1-215 Mt Vernon 1.50 533,463,000 $33.463,000 Central Unincorporated His Post 08-74 2.65 $6,205,000 $6,205,000 Central Unincorporated Mount Vernon/CETAP Corrids Center Pigeon Pass 0.61 $1,887,000 $1,887.000 Central Unincorporated Nuevo Dunlap MenIfee 2.00 $8022,000 $8,022,000 Central Unincorporated Pigeon Pass/CETAP Corridor Cantarini Mount Vernon 3.38 $21,086.000 $21,086,000 Central Unincorporated Post Santa Rosa Mine Ella 0.44 $0 $0 Central Unincorporated Redlands San Timoteo Canyon Locust 2.60 $0 $0 Northwest Corona 615 08-91 Magnolia 4.84 50 $0 Northwest Corona Auto Center Railroad 08-91 0.30 $12.296,000 Northwest Corona Hidden Valley Norco Hills McKinley 0.59 $0 Northwest Corona Lincoln Parkridge Ontario 3.20 $0 Northwest Corona Magnolia 6th Sherborn 0.61 $4,706,000 $4,706,000 Northwest Corona Magnolia Sherborn Rimpau 0.39 $0 $0 Northwest Corona Magnolia Rimpau Ontario 1.17 $0 Northwest Corona Main Grand Ontario 0.88 52,063.000 $1,951,000 Northwest Corona Main Ontario Foothill 074 $0 $0 Northwest Corona Main Hidden Valley Parkridge 0.35 $1,248.000 $957,000 Northwest Corona Main Parkridge 58-91 0.86 10 Northwest Corona Main SR-91 S. Grand 0.86 54,72E4000 54,728,000 Northwest Corona McKinley Hidden Valley Promenade 0.57 $0 Northwest Corona McKinley Promenade SP-91 0.33 $0 $0 Northwest Corona McKinley 08-9I Magnolia 0.31 $42,142,000 $40,242,000 Northwest Corona Ontario I-15 El Cerrito 0.94 53,388.000 $3.388,000 Northwest Corona Ontario Lincoln Buena Vista 0.32 51,152.000 - $631,000 Northwest Corona Ontario Buena Vista Main 0.65 $0 Northwest Corona Ontario Main Kellogg 0.78 $0 $0 Northwest Corona Ontario Kellogg Fullerton 0.32 $1,768,000 $1,768,000 Northwest Corona Ontario Fullerton Pimpau 0.42 $0 $0 Northwest Corona Ontario Rimpau 1-15 0,60 $0 $0 Northwest Corona Railroad Auto Club Sherman 197 $12,296,000 $12,296,000 Northwest Corona Railroad Sherman Main (at Grand) 1.26 54,534000 53.028,000 Northwest Corona River Corydon Main 2.27 $0 $0 Northwest Corona Serfas Club SP-91 Green River 0,96 50 $0 WRCOG 33 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 4.4 - TUMF Network Cost Estimates (continued) AREA PLAN 01ST CITY STREETNAME SEGMENTPROM SEOMENTTO MILES TOTAL COST MAXIMUM TUMP SHARE Northwest Norco st Parkridge Mountian 0.26 $601,000 $601,000 Northwest Norco lvi Mountian Hamner 0.26 $0 $0 Northwest NOrCO 2nd River kl 5 1.44 $3,365,000 $2,321.000 Northwest Norco 6th Hamner California 1.71 $15,791,000 $15,791,000 Northwest Norco Arlington North Arlington 0.97 02.282.000 $2,282,600 Northwest Norco California Arlington 6th 0.98 $3.517.000 $3.517,000 Northwest NOM° Corydon River 5th 1 46 $5.254,000 05,254,000 Northwest Norco Hamner Santa Ana River Hidden Valley 3.05 $ 0,953.000 $10.953,000 Northwest Norco Hidden Valley kl 5 Norco Hills 1.52 $0 $0 Northwest Norco Hidden Valley Hamner 1-15 0.13 $0 $0 Northwest Norco Norco Corydon Hamner 1.20 04.316.000 $4,316,000 Northwest NOM() North California Arlington 0.81 $0 $0 Northwest Norco River Archibald Corydon 1.14 $4,090,000 $2,328,000 Northwest Riverside 14th Market Martin Luther King 0.89 $0 $0 Northwest Riverside 1st Market Main 0,08 $0 $0 Northwest Riverside 3rd Chicago k215 0.36 $0 $0 Northwest Riverside Adorns SR-91 Arlington 1,56 $6 $0 Northwest Riverside Adams 014-91 Lincoln 0.54 $12,296.000 $12.296,000 Northwest Riverside Buena Vista Santa Ana River Redwood 0.30 $0 Northwest Riverside Canyon Crest Central Country Club 0,59 $0 $0 Northwest Riverside Canyon Crest Country Club Via Vista 0.94 02,568.000 $1,854,000 Northwest Riverside Canyon Crest Via Vista Alessandro 0.68 $0 $0 Northwest Riverside Canyon Crest Martin Luther King Central 0.95 $0 Northwest Riverside Central Chicago k215/SR-60 2.15 $0 $0 Northwest Riverside Central 08-91 Magnolia 0.76 $2,725,000 $2,725,030 Northwest Riverside Central Alessandro SR-91 2.05 $0 Northwest Riverside Central Van Buren Magnolia 3.53 $0 $0 Northwest Riverside Chicago Alessandro Spruce 342 $0 $0 Northwest Riverside Chicago Spruce Columbia 0.75 $26.390,000 $26,390,000 Northwest Riverside Columbia Main Iowa 1,09 $28.087,000 $28.087,000 Northwest Riverside Iowa Center 3rd 2.25 $26,507,000 $26,507,000 Northwest Riverside Iowa 3rd University 0.51 $0 $0 Northwest Riverside JFK Trautwein Wood 0.48 $0 $0 Northwest Riverside La Sierra Arlington SR-91 3,56 $0 $0 Northwest Riverside La Sierra SR-91 Indiana 0,19 $0 $0 Northwest Riverside La Sierra Indiana Victoria 0 78 $0 $0 Northwest Riverside Lemon (NB One way) Mission Inn University 0.08 $0 $0 Northwest Riverside Uncoin Adams Washington 1.55 $0 $0 Northwest Riverside Uncoln Van Buren Adams 1.54 $0 $0 Northwest Riverside Lincoln Washington Victoria 1.43 $5.132,000 $5,132,000 Northwest Riverside Uncoln Victoria Arlington 0.28 $0 $0 Northwest Riverside Madison SR-91 Victoria 0.86 $12.296,000 $12,296,000 Northwest Riverside Magnolia BNSF RR La Sierra 3.09 $12,296.000 $12,296,000 Northwest Riverside Magnolia La Sierra Harrison 2.70 $0 $0 Northwest Riverside Magnolia Harrison 14th 5.98 $12,296,000 012,296.000 Northwest Riverside Main st San Bernardino County 2.19 $0 $0 Northwest Riverside Market 14th Santa Ana River 2.03 0 $0 Northwest Riverside Martin Luther King 14th I-215/SR-60 2.11 $7,573,000 $6,890,000 Northwest Riverside Mission Inn Redwood Lemon 0.79 $0 Northwest Riverside Overlook Sondtrack Alessandro 0.32 $0 $0 Northwest Riverside Overlook Washington Bodewin/Via Montecito 0.56 $0 Northwest Riverside Overlook Bodewin/Vla Montecito Crystal View 0.81 $3.213,000 $3.213,000 Northwest Riverside Overlook Crystal View Via Vista 0.55 $12,723,000 $12,723,000 Northwest Riverside Overlook Via Vista Sandtrack 0.63 02.504.000 $2.504.000 Northwest Riverside Redwood (S8 One way) Mission Inn University 0.08 $0 $0 Northwest Riverside Trautweln Alessandro Van Buren 2.19 0 $0 Northwest Riverside Tyler 5R-91 Magnolia 0.43 $32,306,000 $32,306,000 Northwest Riverside Tyler Magnolia Hole 0,27 $0 $0 Northwest Riverside Tyler Hole Wets 1.06 $0 $0 Northwest Riverside Tyler Wells Arlington 1.35 $4.851,000 04,851,000 Northwest Riverside University Redwood SR-91 0.86 $0 $0 Northwest Riverside University SR-91 1-215/58-60 2,01 $0 $0 Northwest Riverside Victoria Madison Washington 0.52 $0 Northwest Riverside Washington Victoria Hermosa 2.05 $7,372.000 $7,372,000 Northwest Riverside Wood JFK. Von Buren 0.70 $821,000 $821,000 Northwest Riverside Wood Van Buren Bergamont 0,11 $0 Northwest Riverside Wood Bergamont Krameria 0,39 $365.000 $365,000 Northwest Unincorporated Archibald San Bernardino County River 3.63 $13,258.000 $7.236,000 Northwest Unincorporated Armstrong San Bernardino County Valley 1.53 $1,376,000 $1,169,000 Northwest Unincorporated Bellgrave Cantu-Galleon° Ranch Van Buren 0.29 $675,000 $609,000 Northwest Unincorporated Cantu-Galleano Ranch Hamner Winevine 0,94 $0 $0 Northwest Unincorporated Cantu-Galleano Ranch Wineville Bellgrave 1.82 $6,821,000 $6,821,000 Northwest Unincorporated Dos Lagos (Weirick) Temescal Canyon 1-15 0,21 $0 0 Northwest Unincorporated El Cerrito 1-15 Ontario 0.56 $1,304.000 $1,304.000 Northwest Unincorporated Etiwando San Bernardino County SR-60 100 $0 $0 Northwest Unincorporated Etiwanda SR-60 Limonite 3.00 $0 $0 WRCOG 34 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 4.4 - TUMF Network Cost Estimates (continued) AREA PLAN DIST CITY STREETNAME ,SEGMENTFROM seGmeNno MILES TOTAL COST MAXIMUM TUME SHARE Northwest Unincorporated Hamner Bellgrave Amberhill 042 5974,000 $974,000 Northwest Unincorporated Hamner Amberhill Limonite 049 $2302000 $1,850000 Northwest Unincorporated Hamner Limonite Schleisman 100 $2,333,000 $2.333000 Northwest Unincorporated Hamner Schleisman Santa Anna River 1.29 $26,069,000 $25.696,000 Northwest Unincorporated Hamner Mission Bellgrave 1 11 52598,000 52,557,000 Northwest Unincorporated Harley John Washington Scottsdale 0.12 $0 Northwest Unincorporated Harley John Scottsdale CHOIce 1,19 52,783,000 $2,783,000 Northwest Unincorporated La Sierra Victoria El Sobrante 222 $0 $0 Northwest Unincorporated to Sierra El Sobrante Calalc° 2.36 $0 Northwest Unincorporated Limonite Archibald Hamner 1.99 $4,673,000 $4,373,000 Northwest Unincorporated Limonite Hamner I-15 0.62 $17,236,000 $16,754,000 Northwest Unincorporated Limonite 5-I5 Wineville 040 $O Northwest Unincorporated Limonite Wineville Etiwanda 099 $0 $0 Northwest Unincorporated Limonite Etiwanda Van Buren 2,72 $12,737,000 $9,299,000 Northwest Unincorporated Limonite Van Buren Clay 0.79 $1,857,000 $1,857,000 Northwest Unincorporated limonite Clay Riverview 2,45 $O $0 Northwest Unincorporated Market Rubidoux Santa Ana River 174 $12.440,000 $11753.000 Northwest Unincorporated Mission Milliken SR-60 1.61 $0 Northwest Unincorporated Mission 08-60 Santa Ana River 7.39 $0 $0 Northwest Unincorporated Mockingbird Canyon Van Buren Calalc° 4.34 $11,831,000 $11,576,000 Northwest Unincorporated Riverview Limonite Mission 0,95 $0 $0 Northwest Unincorporated Rubidoux San Bernardino County Mission 265 $15,791,000 $15,791,000 Northwest Unincorporated Temescal Canyon Ontario Tuscany 0.65 $1,411,000 $1,411,000 Northwest Unincorporated Temescal Canyon Tuscany Dos Lagos 091 $0 $0 Northwest Unincorporated Temescal Canyon Dos Lagos Leroy 1.10 $3.011000 $3011000 Northwest Unincorporated Temescal Canyon Leroy Dawson Canyon 1.89 $5.145,000 $5,145,000 Northwest Unincorporated Temescal Canyon Dawson Canyon kl 5 0.28 $15,791,000 $15,791,000 Northwest Unincorporated Temescal Canyon I-15 Park Canyon 3.41 $10,619,000 $10,619,000 Northwest Unincorporated Temescal Canyon Park Canyon Indian Truck Trail 2.55 $6,949,000 $6,949,000 Northwest Unincorporated Valley Armstrong Mission 0.48 $0 $0 Northwest Unincorporated Washington Hermosa Harley John 3,96 $9,283.000 $9,283.000 Northwest Unincorporated Wood Krameria Calalco 299 $6,998,000 56,998000 Pass Banning 8th Wilson I-I0 0.54 $0 $0 Pass Banning Highland Springs Oak Valley (14th) Wilson (8th) 0.73 52,634.000 $1,317,000 Pass Banning Highland Springs Cherry Valley Oak Valley (14th) 1.53 $5.505,000 $2,753,000 Pass Banning 5-10 Bypass South I-10 Apache Trail 3.29 530085.000 $30,085,000 Pass Banning Lincoln Sunset 08-243 2.01 $0 $0 Pass Banning Ramsey 1-10 Wilson (8th) 1.70 $0 $0 Pass Banning Ramsey Wilson (8th) Highland Springs 3.55 $0 $0 Pass Banning SR-243 I-I0 Wesley 0.62 $0 $0 Pass Banning Sun Lakes Highland Home Sunset 1.00 $10,517,000 $10,517,000 Pass Banning Sun Lakes Highland Springs Highland Home 1,33 $0 $0 Pass Banning Sunset Ramsey Lincoln 0,28 $43.195.000 $43.195,000 Pass Banning Wilson (81h) Highland Home Wilson (8th) 2,51 $0 $0 Pass Banning Wilson (81h) Highland Springs Highland Home 1.01 53.614,000 $3.614,000 Pass Beaumont 1st Viola Pennsylvania 1.28 $4,605,000 $0 Pass Beaumont 1st Pennsylvania Highland Springs 1.10 $0 Pass Beaumont 6th 1-10 Highland Springs 2.24 $O $0 Pass Beaumont Desert Lawn Champions Oak Valley (STC) 0.99 $2.311,000 Pass Beaumont Highland Springs Wilson (8th) Sun Lakes 0.76 $18,524,000 $17,158,000 Pass Beaumont Oak Valley (14th) Highland Springs Pennsylvania 1.13 $0 Pass Beaumont Oak Valley (14111) Pennsylvania Oak View 140 $0 Pass Beaumont Oak Valley 114th) Oak View HO 0.65 $20,540000 $0 Pass Beaumont Oak Valley (STC) Beaumont City Limits Cherry Valley (J St / Central Overt 3.46 $0 $0 Pass Beaumont Oak Valley (SIC) Cherry Valley (1St / Central Over 1-10 1.67 $3,902,000 Pass Beaumont Pennsylvania 6th 1st 0.53 $15,791,000 $0 Pass Beaumont Viele 4th 1st 0.31 $1,116,000 $0 Pass Beaumont Viele 6th 4th 0.50 $28,197,000 $0 Pass Calimesa Bryant County Line Singleton 038 $0 $13 Pass Colima.) Cairmesa County Line 1-10 OBG $32,306,000 $32,306.000 Pass Caltmesa Cherry Valley Roberts Palmer 0,50 51,163000 $0 Pass Cakmesa County Line 1-10 Bryant 1.76 $18,948.050 $18,948000 Pass CaHmesa Desert Lawn Cherry Valley Champions 1.61 $3,764,000 $3.764,000 Pass Calimesa Singleton Bryant Condit 1.86 $10.160,000 510,160,000 Pass Calimesa Singleton Condit Roberts 0.85 $35,357,000 $35.357,000 Pass Unincorporated Cherry Valley Highland Springs Noble 0.95 $4.462.000 $4.462,000 Pass Unincorporated Cherry Valley Noble Desert Lawn 3,40 $42,766,000 $42766.000 Pass Unincorporated Live Oak Canyon Oak Valley (SIC) San Bernardino County 2.81 $0 $0 Pass Unincorporated Oak Valley /SIC) San Bernardino County Beaumont City Limits 5,65 $13,195,000 $13,195,000 San Jacinto Hemet Sanderson Acacia Menlo 0.98 $0 $0 San Jacinto Hemet Sanderson Domenigoni Stetson 1.08 $0 $0 San Jacinto Hemet Sanderson RP Crossing Acacia 0.42 $0 San Jacinto Hemet Sanderson Stetson RR Crossing 0.58 50 $0 San Jacinto Hemet Sanderson Menlo Esplanade ISO $3.586.000 $1,789,000 San Jacinto Hemet SP-74 Warren Cawston 1.02 $0 $O San Jacinto Hemet SR-74 (Florida) Columbia Ramona 2.58 $0 $0 Son Jacinto Hemet 58-74/08-79 (Florida) Cawston Columbia 4.03 $0 $0 San Jacinto Hemet State Domenigoni Chambers 1.31 $0 $O San Jacinto Hemet State Chambers Stetson 0.51 $0 $0 San Jacinto Hemet State Florida Esplanade 174 $0 $0 San Jacinto Hemet State Stetson Florida 1.25 $6.881.000 $4,938.000 San Jacinto Hemet Stetson Cawston State 2.52 $0 $O San Jacinto Hemet Stetson Warren Cawston 1.00 $2.341,000 $2,341,000 San Jacinto Hemet Warren Esplanade Dornenigoni 4.99 $14,195,000 $13,396,000 WRCOG 35 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 4.4 - TUMF Network Cost Estimates (continued) AREA PLAN DIST CITY MEE-MAME SEGMENTFROM SEGMENTTO MILES TOTAL COST MAXIMUM TUMF SHARE San Jacinto San Jacinto Esplanade Ramona Mountain 0.20 $1,434,000 $1.434,000 San Jacinto San Jacinto Esplanade Mountain State 2.55 $0 $0 San Jacinto San Jacinto Esplanade State Warren 3,53 58,275.000 $8,275,000 San Jacinto San Jacinto Sanderson Ramona Esplanade 3.55 $8310000 $4,162,000 San Jacinto San Jacinto $8-79 (North Ramona) State San Jacinto 102 $0 San Jacinto San Jacinto 08-79 (San Jacinto) 7th SR-74 2.25 $0 $0 San Jacinto San Jocinto 58-79 (San Jacinto) North Ramona Blvd 7th 0.25 $886,000 $886,000 San Jacinto San Jacinto State Ramona Esplanade 199 $0 San Jacinto San Jacinto State Street Gilman Springs Cluandt Ranch 076 55.958.000 $5,348,000 San Jacinto San Jacinto State Street Quandt Ranch Ramona 0.70 $0 $0 San Jacinto San Jacinto Warren Ramona Esplanade 3.47 58,130,000 $8,130,000 San Jacinto Unincorporated Gilman Springs Sanderson State 2.54 $6.796,000 $4,733,000 San Jacinto Unincorporated SR-79 (Winchester) SR-74 (Florida) Domenigoni 3,23 50 $0 Southwest Lake Elsinore Diamond Mission 1-15 0.24 1659,000 5533 000 Southwest Lake Elsinore Grand Lincoln Soft 129 $0 $0 Southwest Lake Elsinore Grand Toff 08-74 (Riverside) 0.86 $1,206,000 $1,206,000 Southwest Lake Elsinore Lake 1-15 Lincoln 3.10 $22,141000 $20,582,000 Southwest Lake Elsinore Mission Railroad Canyon Bundy Canyon 2,39 $0 $0 Southwest Lake Elsinore SR-74 (Collier/Riverside) 1-15 Lakeshore 2.10 $15,078,000 $11,647,000 Southwest Lake Elsinore SP-74 (Grand) Riverside 08-74 (Ortega) 0.64 $4,567,000 53,937,000 Southwest Lake Elsinore SR-74 (Riverside) Lakeshore Grand 1.74 $11,212000 $10,949,000 Southwest Murrieta Cdifornla Oaks Jefferson I-15 0.32 $38444,000 $33,444.000 Southwest Murrieta 'California Oaks 1-15 Clinton Keith 2.26 $0 $0 Southwest Murrieta Jefferson Murrieta Hot Springs Cherry 2.26 $0 Southwest Murrieta Jefferson Palomar Nutmeg 1.02 $4.779,000 54,779,000 Southwest Murrieta Jefferson Nutmeg Muff ieta Hot Springs 2.37 517,005,000 $16,105,000 Southwest Murrleta Los Alamos Jefferson I-15 0.38 $4,271,000 54271,000 Southwest Murrieta Los Alamos 'I-15 k215 1.39 $5002,000 54.792,000 Southwest Murrieta Murrieta Hot Springs 1-215 Margarita I 48 50 $0 Southwest Murrieta Murrieta Hot Springs Jefferson 1-215 1,11 $0 50 Southwest Murfieto Murrleta Hot Springs Margarita 08-79 (Winchester) 1.01 52,362000 51.448,000 Southwest Murrleto Nutmeg Jefferson Clinton Keith 1.97 $0 Southwest Murrieta Whitewood Clinton Keith Los Alamos 2.01 $0 $0 Southwest Temecula Jefferson Cherry Rancho California 2.29 $0 $0 Southwest Temecula Margarita Murrleta Hot Springs SR-79 (Temecula) 7.38 50 $0 Southwest Temecula Old Town Front Rancho Catifornia I-15/SR-79 1.45 $0 Southwest Temecula Pechanga SR-79 (Temecula) Via Gilberto 1.32 $0 $0 Southwest Temecula Pechanga Via Gilberto Pechanga Road 1.44 50 50 Southwest Temecula Rancho California Jefferson Margarita 1.89 $19,962,000 $18,384,000 Southwest Temecula Rancho California Margarita Butterfield Stage 1.96 $10,818,000 $10,818,000 Southwest Temecula SR-79 (Temecula/ I-15 Pechanga 0.64 $1,502,000 5123,000 Southwest Temecula 08-79 (Temecula) Pechanga Road Butterfield Stage 308 $0. $0 Southwest WIldomar Baxter 1-15 Palomar 0.37 $16,654,000 $16,654,000 Southwest Wildomar Bundy Canyon Mission 1-15 094 53.358,000 53,358,000 Southwest WIldomar Central Baxter Palomar 0.74 $2,642,000 $2.642.000 Southwest Wildomar Mission Bundy Canyon Palomar 0.84 $0 $0 Southwest Wider-nor Palomar Clinton Keith Jefferson 0.74 51,723,000 $1,723,000 Southwest Wildomar Palomar Mission Clinton Keith 2.79 56,534,000 56,534.000 Southwest Unincorporated BrIgM Scott 08-79 (Winchester) 3.39 $7,946,000 $7,946.000 Southwest Unincorporated Butterfield Stage Murrieta Hot Springs Rancho California 1,78 520,587,000 $20,587,000 Southwest Unincorporated Butter eld Stage Rancho California SR-79 (Temecula) 2.30 $6,261,000 $6,261,000 Southwest Unincorporated Butterfield Stage 58-79 (Winchester) Auld 2.28 $6.221.000 $6,221,000 Southwest Unincorporated Butterfield Stage Auld Murrieta Hot Springs 223 $19,685,000 $19,685.000 Southwest Unincorporated Central Grand Palomar 0.51 $1,834,000 $1.834,000 Southwest Unincorporated Grand Ortega Central 698 525,052,000 $25,052,000 Southwest Unincorporated Horsethief Canyon Temescal Canyon 1-15 0.17 5395,000 5396000 Southwest Unincorporated Indian Truck Trail Temescal Canyon 1-15 0.18 516,612,000 $16,612,000 Southwest Unincorporated Murrieta Hot Springs 59-79 (Winchester) Pourroy 1.75 $0 $0 Southwest Unincorporated Pala Pechango San Diego County 1.38 $0 $0 Southwest Unincorporated Temescal Canyon Indian Truck Trail Lake 121 $4,124,000 $4,124.000 Subtotal 47125 $1,824,257.000 $1,680,884,000 Totals Network 766.40 $ 3,923,889,000 $ 3,535,388.000 Transtt 5 166.945,000 $ 61,826,000 Administration $ 107,916,420 $ 107,916,420 MSHCP $ 62367,000 $ 59,959,000 Total 5 4,261,117,420 $ 3,765,089,420 WRCOG 36 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 4.5 - TUMF Transit Cost Estimates AREA PLAN 01ST LEAD AGENCY PROJECT NAME LOCATION UNITS {number/ length in miles) TOTAL MAXIMUM TUME SHARE Regional RIA Regional Transit Centers Various locations region wide 11 62205,000 23,037.000 Regional RTA Bus Stop Amenities Upgrade Various locations region wide 70 1,890,000 700,000 Northwest/Central RTA Central Spine Service Capita! Corona, Riverside, Moreno Valley 24 13,200,000 4,888,000 Northwest/Pass RTA SR60 Regional Flyer Capital SR-60 corridor from SB Co to Banning 45 24,750,000 9,166,000 Northwest/San Jacintc RTA 1-215/SR74 Regional Flyer Capi I-215/SR-74 corridor from Riverside to San Jacir 3 7 20,350,000 7,536,000 Northwest/Southwest RTA 1-15 Regional Flyer Capital 1-15 Corridor from SB Co to Temecula 49 26,950,000 9,981.000 Regional RTA Regional Flyer Vehicle fleet Various routes region wide 32 17,600,000 6,518,000 Total 166,945.000 61,826M, 4.8 TUMF Network Evaluation To assess the effectiveness of the proposed TUMF Network improvements to mitigate the cumulative regional impact of new development in Western Riverside County, the proposed network improvements were added to the 2035 Baseline network in RivTAM and the model was run to determine the relative impacts on traffic conditions. To quantify the impacts of the TUMF Network improvements, the various traffic measures of effectiveness described in Section 3.1 for the 2007 and 2035 base networks were again calculated for the 2035 TUMF Network scenario. The results for VMT, VHT, VHD, and total VMT experiencing unacceptable level of service (LOS E) were then compared to the results presented in Table 3.1 for the no-build conditions. The 2035 comparison results are provided in Table 4.6. Plots of the Network Extents are attached in Appendix H. As shown in Table 4.6, the VMT on arterial facilities experiencing LOS of E or worse will decrease by 14% with the addition of the TUMF Network improvements while the share of VMT on the regional arterial highway system experiencing daily LOS E or worse will be reduced to 33%. It should be noted that the total VMT on the arterial system increases by 8% as a result of freeway trips being diverted to the arterial system to benefit from the proposed TUMF improvements. Despite a greater share of the total VMT in 2035, the arterial system is able to more efficiently accommodate the increased demand with the proposed TUMF improvements. Although VMT on the TUMF improved arterial system increases by 8%, VHT on the arterial system decreases by 6% indicating traffic is able to move more efficiently. Additionally, a substantial benefit is observed on the freeway system with VHT reduced by 5% following TUMF improvements. By completing TUMF improvements, the total VHD experienced by all area motorists would be reduced by 24% over the levels that would be experienced in 2035 without TUMF improvements. These results highlight the overall effectiveness of the TUMF Program to mitigate the cumulative regional transportation impacts of new development. WRCOG 37 DRAFT - October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 4.6 - Regional Highway System Measures of Performance (2035 Base versus 2035 TUMF Network)* Measure of Performance (Daily) 2035 (Base)** 2035 TUMF Network)** % Chan 9e VMT - TOTAL ALL FACILITIES 60,772,353 62,457,677 3% VMT - FREEWAYS 32,920,502 32,321,916 -2% TOTAL ARTERIAL VMT 27,851,851 30,135,761 8% VHT - TOTAL ALL FACILITIES 2,385,725 2,274,736 -5% VHT - FREEWAYS 1,301,737 1,230,030 -6% TOTAL ARTERIAL VHT 1,083,988 1,044,706 -4% VHD - TOTAL ALL FACILITIES 1,049,291 909,428 -13% VHD - FREEWAYS 704,578 647,606 -8% TOTAL ARTERIAL VHD 344,713 261,822 -24% VMT LOS E - TOTAL ALL FACILITIES 50,001,659 47,005,020 -6% VMT LOS E - FREEWAYS 31,864,589 31,321,324 -2% TOTAL ARTERIAL VMT w/ LOS E or worse 18,137,070 15,683,696 - 1 4% % of ARTERIAL VMT w/ LOS E or worse 36% 33% * Based on RivTAM ** Volume is adjusted by PCE factor NOTES: VMT = vehicle miles of travel (the total combined distance that all vehicles travel on the system) VHT = vehicle hours of travel (the total combined time that all vehicles are traveling on the system) VHD = vehicle hours of delay (the total combined time that all vehicles have been delayed on the system based on the difference between forecast travel time and free-flow (ideal) travel time) LOS = level of service (based on forecast volume to capacity ratios. Daily capacity was calculated as ten times AM peak hour capacity) LOS E or Worse was determined by V/C ratio that exceeds a 0.9 threshold as indicated in the Riverside County General Plan. WRCOG 38 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update 5.0 TUMF NEXUS ANALYSIS The objective of this section is to evaluate and document the rational nexus (or reasonable relationship) between the proposed fee and the transportation system improvements it will be used to help fund. The analysis starts by documenting the correlation between future development and the need for improvements on the TUMF system, followed by analysis of the nexus evaluation of the key components of the TUMF concept. 5.1 Future Development and the Need for Improvements Previous sections of this report documented the projected residential and employment growth in Western Riverside County, the expected increases in traffic congestion and travel delay, and the identification of the transportation system improvements that will serve these future inter-community travel demands. The following points bring together this information in a synopsis of how the future growth relates to the need for improvements to the TUMF system. Western Riverside County is expected to continue growing. Development in Western Riverside County is expected to continue at a robust rate of growth into the foreseeable future. Current projections estimate the population is projected to grow from a current level of 1.57 million to a future level of over 2.54 million in 2035, while employment is projected to grow from a current level of 516,000 to a future level of over 1,091,000 (as shown in Table 2.3). Continuing growth will result in increasing congestion on arterial roadways. Traffic congestion and delay on arterial roadways are projected to increase dramatically in the future (as shown in Table 3.1). Without improvements to the transportation system, congestion levels will grow rapidly and travelers will experience unacceptable travel conditions with slow travel speeds and lengthy delays. The future arterial roadway congestion is directly attributable to future development in Western Riverside County. Traffic using arterial roadways within Western Riverside County is virtually all generated within or attracted to Western Riverside County, since long-distance trips passing through the region typically use the freeway system, not arterial roadways. Therefore, the future recurring congestion problems on these roadways will be attributable to new trips that originate in, terminate in, or travel within Western Riverside County. Capacity improvements to the transportation system will be needed to alleviate the future congestion caused by new development. To maintain transportation service at or near its current levels of efficiency, capacity enhancements will need to be made to the arterial roadway system. These enhancements could include new or realigned roads, additional lanes on existing roads, new or expanded bridges, new or upgraded freeway interchanges, grade WRCOG 39 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update separation of at-grade rail crossings, or expansion of intersections where two network roads intersect. The completion of improvements to the arterial roadway system would enhance regional mobility and reduce the total vehicles hours of travel (VHT), vehicle hours of delay (VHD) and the share of traffic experiencing congestion (as shown in Table 4.6). The specific needs and timing of implementation will depend on the location and rate of future development, so the specific improvements to be funded by the TUMF and their priority of implementation will be determined during future project programming activities as improvement needs unfold and as TUMF funds become available. Roads on the TUMF network are the facilities that merit improvement through this fee proqram. The criteria used to identify roads for the TUMF network (future number of lanes, future traffic volume, future congestion level, and roadway function linking communities and activity centers and serving public transportation) were selected to ensure that these are the roadways that will serve inter-community travel and will require future improvement to alleviate congestion. Improvements to the public transportation system will be needed to provide adequate mobility for transit-dependent travelers and to provide an alternative to automobile travel. Since a portion of the population does not own an automobile and depends on public transportation for mobility, the public transportation infrastructure and service will need to be enhanced and expanded to ensure continued mobility for this segment of the population. In addition, improvements to the public transportation system will be required to ensure that transit service can function as a viable option for future new Western Riverside County residents and employees who choose to avoid congestion by using public transportation. For the reasons cited above, it can be readily concluded that there is a rational nexus between the future need for transportation improvements on the TUMF system and the future development upon which the proposed TUMF would be levied. The following sections evaluate the rational nexus in relation to the system components and the types of uses upon which the fee is assessed. 5.2 Application of Fee to System Components As noted in Section 3.2, the TUMF concept includes splitting the fee revenues between the backbone system of arterials, the secondary system of arterials, and the public transportation system. This section evaluates the travel demands to determine the rational nexus between the future travel demands and the use of the fee to fund improvements to the future system components. The split of fee revenues between the backbone and secondary highway networks is related to the proportion of highway vehicle travel that is relatively local (between adjacent communities) and longer distance (between more distant communities but still within Western Riverside County). To estimate a rational fee split between the WRCOG 40 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update respective networks, the future travel forecast estimates were aggregated to a matrix of trips between zones to show the percentage of trips that remain within each zone in relation to the volume that travels to the other zones. This analysis was completed using the Year 2035 trip tables from RivTAM. The first step in the analysis was to create a correspondence table between the TAZs in the model and the five WRCOG TUMF zones (i.e. Northwest, Southwest, Central, Hemet/San Jacinto and Pass). The TAZs were then compressed into six districts (the five WRCOG zones and one for the rest of the SCAG region). Table 5.1 shows the estimated vehicle trips within and between each of the zones. Table 5.2 shows the percentage of vehicle trips within and between the respective zones. Appendix I includes the detailed RivTAM outputs used to develop the regional trip distribution profile shown in Table 5.1 and 5.2. Table 5.1 - 2035 Vehicle Trips By WRCOG Zone To From Northwest Central Pass Hemet/San Jacinto Southwest Outside WRCOG TOTAL Northwest 1,649,453 125,529 12,488 13,513 48,805 492,036 2,341,824 Central 122,107 634,680 17,147 38,879 62,276 93,426 968,516 Pass 12,329 17,266 297,383 15,493 4,294 76,059 422,823 Hemet/San Jacinto 13,455 39,533 15,999 637,823 34,764 31,824 773,399 Southwest 48,092 62,597 4,328 34,323 9 i 1,069 67,825 1,128,235 Outside WRCOG 483,400 92,063 73,415 30,557 67,110 746,546 TOTAL 2,328,835 971,669 420,761 770,588 1,128,320 761,171 C381,343 Based on RivTAM Year 2035 Base scenario Table 5.2 - 2035 Percent Vehicle Trips By WRCOG Zone To From Northwest Central Pass Hemet/San Jacinto Southwest Outside WRCOG TOTAL Northwest 70.4% 5.4% 0.5% 0.6% 2.1% 21.0% 100% Central 12.6% 65.5% 1.8% 4.0% 6.4% 9.6% 100% Pass 2.9% 4.1% 70.3% 3.7% 1.0% 18.0% 100% Hemet/San Jacinto 1.7% 5.1% 2.1% 82.5% 4.5% 4.1% 100% Southwest 4.3% 5.5% 0.4% 3.0% 80,8% 6.0% 100% Based on RivTAM Year 2035 Base scenario WRCOG 41 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update Table 5.3 - Backbone-Secondary Network Share Calculation Total Western Riverside County Vehicle Trips Total Vehicle Trips Internal to Western Riverside County Vehicle Trips Within TUMF Zones (as share of intra-zonal trips) Table 5.3 summarizes the calculation of the split between the Backbone and Secondary highway networks as derived from the trip values provided in Table 5.1. Vehicle trips to and from areas outside Western Riverside County were subtracted from the calculation, on the presumption that most of their inter-regional travel would occur on the freeway system. Trips between zones (regional) were assigned to the backbone network, since these trips are primarily served by the arterial roadways that provide connections between the zones. Trips within zones (local) were split between the backbone network and the secondary network in proportion to their lane-miles, since roadways on both networks serve intra-zonal trips. The Backbone network includes approximately 43.4% of the lane-miles on the future TUMF system, and the Secondary network includes approximately 56.6% of the lane-miles. The Backbone network is therefore assigned all of the inter-zonal trips plus 43.4% of the intra-zonal trips. The Secondary network is assigned 56.6% of the intra-zonal trips and none of the inter-zonal trips. The overall result is that 52.0% of the regional travel is assigned to the Backbone network and 48.0% is assigned to the Secondary network. 5.3 Application of Fee to Residential and Non-Residential Developments In order to establish the approximate proportionality of the future traffic impacts associated with new residential development and new non-residential development, 2035 Base person trip productions from RivTAM were aggregated by trip purpose. RivTAM produces person trips (irrespective of mode choice) on the basis of six trip purposes: home-based-work (HBW), home-based-other (HBO), home-based-school K-12 (HBS), home-based-college/university (HBC), work-based-other (WBO), and other- based-other (OB0). WRCOG 42 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update NCHRP Report #187 Quick Response Urban Travel Estimation Techniques and Transferable Parameters User's Guide (Transportation Research Board, 1978) details operational travel estimation techniques that are universally used for the travel demand modeling. Chapter 2 of this report, which details trip generation estimation, states that "HBW (Home Based Work) and HBNW (Home Based Non Work) trips are generated at the households, whereas the NHB (Non-Home Based) trips are generated elsewhere." In accordance with NCHRP Report #187, person trip productions were aggregated into home-based person trips (combining the first four purposes: HBW, HBO, HBS, HBC) and non-home-based person trips (combining the last two purposes: WBO, OB0). The home-based person trips represent 69.2% of the total future person trips, and the non- home-based person trips represent 30.8% of the total future person trips as shown in Table 5.4. Appendix J includes the RivTAM outputs used to develop the trip purpose summary in Table 5.4. Table 5.4 - Residential vs. Non-Residential Person Trip Production PERSON TRIP PURPOSE PERSON TRIP PRODUCTION VOLUME PERSON TRIP PRODUCTION SHARE Home -Based -Work 1,516,967 17.6% Home-Based-Other 3,659,649 42.5% Home-Based -School K -12 711.193 8.3% Home-Based-Colle_ge/University 67,119 0.8% Work-Based-Other 562,715 6.5% Other -Based-Other 2,083,468 24.2% TOTAL 8,601,111 100.0% Home-Based Trips (Residential Uses) 5,954,928 2,646,182 69.2% 30.8% Non-Home-Based Trips (Non-Residential Uses) Based on the SCAG 2004 Regional Transportation Plan, Year 2030 Plan scenario. WRCOG 43 DRAFT— October 1, 2009 TUMF Nexus Study — 2009 Program Update 6.0 FAIR-SHARE FEE CALCULATION The fee amounts, by type of development, that are justified to mitigate the cumulative regional impacts of new development on transportation facilities in Western Riverside County are quantified in this section. The total cost of improving the TUMF system is $4.26 billion. Existing funding obligated for improvements to the TUMF system totals $270.8 million while unfunded improvement needs generated by existing development represent $330.1 million of the total cost. The balance of the unfunded TUMF system improvement needs is $3.77 billion which is the maximum value attributable to the mitigation of the cumulative regional transportation impacts of future new development in the WRCOG region, and will be captured through the TUMF Program. By levying the uniform fee directly on future new developments (and indirectly on new residents and new employees to Western Riverside County), these transportation system users are assigned their "fair share" of the costs to address the cumulative impacts of additional traffic they will generate on the regional transportation system. Of the $3.77 billion in unfunded future improvement needs, 69.2% ($2.61 billion) will be assigned to future new residential development and 30.8% ($1.16 billion) will be assigned to future new non-residential development. 6.1 Residential Fees The portion of the unfunded future improvement cost allocable to new residential development through the TUMF is $2.61 billion. Since this future transportation system improvement need is generated by new residential development anticipated through the Year 2035, the fee will be spread between the residential developments projected to be constructed between 2007 and 2035. The projected residential growth from year 2007 to 2035 is 351,679 households (or dwelling units) as is indicated in Table 2.1. Different household types generate different numbers of trips. To reflect the difference in trip generation between lower density "single-family" dwelling units and higher density "multi-family" dwelling units, the TUMF was weighted based on the respective trip generation rates of these different dwelling unit types. For the purposes of the TUMF Program, single family dwelling units are those housing units with a density of less than 8 units per acre while multi family units are those with a density of 8 or more units per acre. According to the RCCDR forecasts included in Appendix B, single family dwelling units (including mobile homes) are forecast to constitute 62.6% of the residential dwelling units in the region in 2035. Data provided in the Institute of Transportation Engineers (ITE) Trip Generation Manual, Eighth Edition (2008) show that, on average, single-family dwelling units generate 9.57 vehicle trips per dwelling unit per day, whereas apartments (considered to be representative of higher density multi-family dwelling units) generate 6.72 vehicle trips per unit per day 7 . If the fees are to be weighted in proportion to the trip generation 7 Based on ITE Trip Generation (2008), the "Apartment" and use category has trip generation characteristics indicative of a wide range of higher density multi-family residential development. The Trio Generation Manual indicates that the apartments category encompasses "a wide variety of units with different sizes, price ranges, locations and ages." WRCOG 44 DRAFT- October I, 2009 TUMF Nexus Study - 2009 Program Update characteristics of the units, single-family residential units should be assigned a fee level that is 1.42 times the level of the fee assigned to each multi-family unit to levy the necessary $2.61 billion to mitigate the cumulative regional transportation impacts of future new residential development. Table 6.1 summarizes the calculation of the fee for single-family and multi-family dwelling units. Appendix K includes worksheets detailing the calculation of the residential (and non-residential) TUMF for Western Riverside County. Table 6.1 - Fee Calculation for Residential Share ($2.61 billion) RESIDENTIAL SECTOR 2007 Dwelling Units 2035 Dwelling Units Dwelling Unit Change Trip Generation Rate Trip Change Percentage of Trip Change Fee/DU Single -Family 395,409 552,154 156,745 9.57 1,500,050 53.4% $8,873 Multi -Family 134,880 329,814 194,934 6.72 1,309,956 46.6% $6,231 TOTAL 530,289 881,968 351,679 2,810,006 100.0% Household data based on RivTAM; Trip Generation based on ITE Trip Generation (2008). 6.2 Non -Residential Fees The portion of the unfunded future improvement cost allocable to new non-residential development through the TUMF is $1.16 billion. Estimates of employment by sector were obtained from the RCCDR socioeconomic data included in Appendix B. From the 2035 employment forecast, the amount of employee growth in each sector was calculated. The employment figures were then translated into square footage of new development using typical ratios of square feet per employee developed by SCAG in its Land Use Density Conversion Factors for the Long Range Corridor Study San Bernardino and Riverside Counties (Cordoba Corporation/PBQD, August 20, 1990) and OCTA in its Orange County Subarea Modelina Guidelines Manual (June 2001). Worksheets showing the development of the TUMF employee conversion factors and the application of the conversion factors to calculate the square footage of future new non-residential development in Western Riverside County are included in Appendix L. To account for the differences in trip generation between various types of non- residential uses, the new non-residential development was weighted by trip generation rate for each sector. Typical trip generation rates per employee were obtained from the Institute of Transportation Engineers (ITE) Trio Generation - Eighth Edition (2008), and were assigned to the non-residential categories as follows: Industrial - 3.2 trips per employee, Retail - 15.4 trips per employee 8 , Service - 4.2 trips per employee, and Public - 14.3 trips per employee. These rates were applied to the employment growth in each sector to determine the relative contribution of each sector to new trip-making, and the $1.16 billion was then allocated among the non-residential categories on the basis of the percentage of new trips added. This proportionate non-residential fee share by sector was then divided by the estimated square footage of future new development 8 The median trip generation rate for 'Retail was reduced by 43% to reflect the influence of pass-by trips us i n g t h e weekday PM peak median pass-by trip rate for retail uses as derived from the 1TE Trip Generation Handbook (June 2004). WRCOG 45 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update to obtain the rate per square foot for each type of use. The calculation of the non- residential fee by sector is shown in Table 6.2. Table 6.2 - Fee Calculation for Non-Residential Share ($1.16 billion) NON-RESIDENTIAL SECTOR Employment Change Tr ip Generation Rate per Employee Trip Change Percentage of Trip Change Change in Square Feet of Gross Floor Area Fee/SF Industrial 101,211 3.2 318,815 8.6% 57,535,808 $1.73 Retail 47,594 15.4 732,948 19.7% 21,758,982 $10.49 Service 338,226 4.2 1,420,549 38.1% 105,461,087 $4.19 Government/Public 87,888 14.3 1,252,404 33.6% 39,061,333 $9.98 TOTAL 574,919 3,724,715 100.0% 223,817,210 Employment Change data based on RCCDR: Trip Generation based on ITE (2008); Change in Square Feet conversion factor based on Cordoba (1990) and OCTA (2001). WRCOG 46 DRAFT — October I, 2009 TUMF Nexus Study — 2009 Program Update 7.0 CONCLUSIONS Based on the results of the Nexus Study evaluation, it can be seen that there is reasonable relationship between the cumulative regional transportation impacts o f new land development projects in Western Riverside County and the need to mitigate these transportation impacts using funds levied through the proposed TUMF Program . Factors that reflect this reasonable relationship include: Western Riverside County is expected to continue growing as a result of future new development. • Continuing new growth will result in increasing congestion on arterial roadways. The future arterial roadway congestion is directly attributable to the cumulative regional transportation impacts of future development in Western Riverside County. • Capacity improvements to the transportation system will be needed to mitigate the cumulative regional impacts of new development. Roads on the TUMF network are the facilities that merit improvement through this fee program. • Improvements to the public transportation system will be needed to provide adequate mobility for transit-dependent travelers and to provide an alternative to automobile travel. The Nexus Study evaluation has established a proportional "fair share" of the improvement cost attributable to new development based on the impacts of existin g development and the availability of obligated funding through traditional sources. Furthermore, the Nexus Study evaluation has divided the fair share of the cost to mitigate the cumulative regional impacts of future new development in Western Riverside County in rough proportionality to the cumulative impacts of future residential and non-residential development in the region. The respective fee allocable to future new residential and non-residential development in Western Riverside County is summarized for differing use types in Table 7.1. Table 7.1 - Transportation Uniform Mitigation Fee for Western Riverside County Land Use Type Units Development Change Fee Per Unit Total Revenue ($ million) Single Family Residential DU 156,745 $8,873 $1,390.8 Multi Family Residential DU 194,934 $6,231 $1,214.6 Industrial SF GFA 57,535,808 $1.73 $99.3 Retail SF GFA 21,758,982 $10.49 $228.2 Service SF GFA 105,461,087 $4.19 $442.3 Government/Public SF GFA 39,061,333 $9.98 $389.9 MAXIMUM TUMF VALUE $3,765.1 WRCOG 47 DRAFT - October I, 2009 TUMF Nexus Study - 2009 Program Update 8.0 APPENDICES The following Appendices incorporate the extent of materials used to support the development of the WRCOG TUMF Nexus Study and, where appropriate, specifically the 2005 Update. The respective Appendices also incorporate an explanation of the methodology and assumptions used to develop the various elements of the Nexus Study. These Appendices represent a compilation of materials derived from a variety of technical resources. Each of the following Appendices relate to the development of a specific element of the Nexus Study. These Appendices are as follows: Appendix A - List of TUMF Commiffees Appendix B - Western Riverside County Population and Employment Growth 2007 - 2035 Appendix C - Western Riverside County Traffic Growth 2007 - 2035 Appendix D - Western Riverside County Transit Person Trips 2007 - 2035 Appendix E - Western Riverside County Regional System of Highways and Arterials Performance Measures Appendix F - TUMF Network Cost Assumptions Appendix G - TUMF 2009 Program Update Disposition of Network Change Requests Appendix H - TUMF Network Cost Estimate and Evaluation Appendix I - Western Riverside County Regional Trip Distribution Appendix J- Western Riverside County Regional Trip Purpose Appendix K - Residential Fee Calculation Appendix L - Non-Residential Fee Calculation WRCOG 48 DRAFT- October 1, 2009 TUMF Nexus Study - 2009 Program Update WRCOG TRANSPORTATION UNIFORM MITIGATION FEE NEXUS STUDY 2009 UPDATE ADDENDUM 1 TEMPORARY FEE REDUCTION Prepared for The Western Riverside Council of Governments In Cooperation with The City of Banning The City of Beaumont The City of Calimesa The City of Canyon Lake The City of Corona The City of Hemet The City of Lake Elsinore The City of Menifee The City of Moreno Valley The City of Murrieta The City of Norco The City of Perris The City of Riverside The City of San Jacinto The City of Temecula The City of Wildomar The County of Riverside Eastern Municipal Water District March Joint Powers Authority Western Municipal Water District Prepared by Parsons Brinckerhoff. Adopted by the WRCOG Executive Committee October 5, 2009 TABLE OF CONTENTS TABLE OF CONTENTS i A1-1.0 BACKGROUND 1 A1-2.0 TUMF NEXUS IMPLICATIONS 4 A1-2.1 Maximum Eligible TUMF Share 5 A1-2.2 TUMF Program Revenue Shortfall 13 A1-3.0 APPENDICES 15 LIST OF TABLES Table A1-2.1 - TUMF Network Cost Estimates - 50% ADJUSTED 6 Table A1-2.2- TUMF Schedule of Fees - 50% ADJUSTED 12 LIST OF FIGURES Figure A1-1.1 - Total Building Permit Valuation in the Inland Empire 1 WRCOG i Addendum 1 -Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 Building Permit Valuation (in billions) .se 03, r f ,f ,i9b Year Notes: 2009 estimated based on 1st quarter 2008 to 2009 percentage change Source: Inland Empire Quarterly Economic Report, July 2009; Construction Industry Researc h B o a r d A1-1.0 BACKGROUND The July 2009 Inland Empire Quarterly Economic Reportl indicates that "in 2009, the Inland Empire is facing its most serious economic challenge since the 193 0 s . " According to the report, the area lost 48,650 jobs in 2008 with a further loss of 82,600 j o b s forecast in 2009. The report attributes the loss of jobs to declines in the construct i o n , logistics and manufacturing sectors as well the region's population-serving activities. Specifically addressing the construction sector, the report states "in 2005, the I n l a n d Empire's developers received $12.5 billion in construction permits....With the resid e n t i a l , retail, industrial and office sectors under enormous pressure, 2009 will see just $1.9 b i l l i o n in permits issued (based on first quarter 2009). That means a drop of $10.6 billi o n ( - 84.7%) in funds entering the region. Of this drop, $8.3 billion was lost by resid e n t i a l builders and $2.3 billion by non-residential developers. The result is an estimated $ 2 1 . 2 billion reduction in the area's economic activity. As a result, construction employ m e n t has fallen 49.0% from a peak of 127,500 in 2006 to 67,100 in 2009." Figure A1-1.1 -Total Building Permit Valuation in the Inland Empire John E. Husing, Ph.D. Inland Empire Quarterly Economic Report, Riverside and San Bernardino Counties, California, Volume 21 Number 3, July 2009 (http://www.wrcog.cog.ca.us/downloads/QER20July2009WRCOG.pdf) WRCOG 1 Addendum I -Temporary Fee Reduction TUMF Nexus Study- 2009 Program Update Adopted October 5, 2009 Figure A1 -1.1 clearly illustrates the impact of the economic recession on the construction sector in the Inland Empire, including Western Riversid e C o u n t y . T h e significant declines in the Total Building Permit Valuation in the Inland E m p i r e o b s e r v e d since 2005 is evident with the forecast valuation for 2009 at the low e s t l e v e l i n t w o decades. The Inland Empire Quarterly Economic Report indicates that since " t h e r e s i d e n t i a l construction depression has been the primary cause of the Inland E m p i r e ' s d e e p downturn, that sector's re-emergence will be a key to recovery." The r e p o r t i n d i c a t e s that housing "demand has returned to its mid-2002 volume, and price a p p e a r s t o b e stabilizing near its first quarter 2002 level. However, roughly 70% of h o m e s a l e s a r e foreclosures." The report goes on to indicate that "the foreclosure suppl y w i l l t h u s l i k e l y prevent home prices from rising to a level where residential construction c a n r e e m e r g e for several years. Given that construction labor and material costs have f a l l e n , t h i s t i m e period will be shortened only if governmental fees, lot sizes and hou s e s i z e s c a n b e reduced. Recognizing the significance of the current economic recession to Wes t e r n R i v e r s i d e County, business, community and government leaders established t h e R i v e r s i d e Economic Development Red Team in 2008. The Red Team recommend e d t h r e e g o a l s critical to recovery of the regional economy. These goals included "re d u c e t h e c o s t o f building new homes so that the new home building industry can put p e o p l e b a c k t o work." In response to the Red Team recommendations, the Riverside C o u n t y B o a r d o f Supervisors at the meeting on July 21, 2009 acted to reduce its loca l d e v e l o p m e n t impact fees (DIF) by 50%. As part of its action, the Board of Super v i s o r s a d o p t e d a resolution encouraging the WRCOG Executive Committee to simila r l y c o n s i d e r a temporary TUMF reduction. A copy of the Riverside County Board of Sup e r v i s o r s J u l y 2 1 , 2009 action including the ordinance amendment and resolution to t h e W R C O G Executive Committee is included as Appendix Al -A to this Addendum. Consistent with the Red Team recommendation and the Riverside County Board of Supe r v i s o r s J u l y 2 1 , 2009 action, almost one-third of the WRCOG jurisdictions have reduc e d d e v e l o p m e n t impact fees in the past year with others considering the matter ov e r t h e n e x t f e w months. Following the action by the Riverside County Board of Supervisors, t h e R i v e r s i d e Economic Development Red Team forwarded a letter to the WRCO G E x e c u t i v e Director reiterating the recommended goals and highlighting the a c t i o n s o f l o c a l jurisdictions to "create jobs and jump-start the economy by deferring a n d / o r r e d u c i n g construction fees." A copy of the letter from the Riverside Economic Dev e l o p m e n t R e d Team dated August 24, 2009 is included as Appendix Al -B to this Addendum. At the meeting on September 14, 2009, the WRCOG Executive Commit t e e c o n s i d e r e d a temporary reduction of the TUMF. The WRCOG Executive Committee " s u p p o r t e d t h e Red Team recommendation and Board of Supervisors' request for a t e m p o r a r y 5 0 % TUMF reduction for a one-year period, to be ratified at the next meeting . " T h e W R C O G WRCOG 2 Addendum 1 - Temporary Fee Reduction TUMF Nexus Study- 2009 Program Update Adopted October 5, 2009 Executive Committee in taking this actio n c i t e d t h e i m p o r t a n c e o f c r e a t i n g j o b s i n Western Riverside County by stimulating th e h o u s i n g m a r k e t t h r o u g h l o w e r f e e s . At the meeting on October 5, 2009, the W R C O G E x e c u t i v e C o m m i t t e e r a t i f i e d t h e previous action to "authorize a temporary 5 0 % r e d u c t i o n i n t h e c u r r e n t T U M F f o r o n e year commencing immediately and en d i n g D e c e m b e r 3 1 , 2 0 1 0 . " T h e W R C O G Executive Committee further resolved that " t h e r e d u c e d T U M F a p p l i e s t o n e w b u i l d i n g permits associated with new developme n t p r o j e c t s . I f r e d u c e d f e e s a r e p a i d a t t h e time application is made for a building per m i t a n d e i t h e r t h e a p p l i c a t i o n o r t h e b u i l d i n g permit expires, subsequent building permi t a p p l i c a t i o n s o n t h e s a m e p a r c e l s h a l l b e subject to the full TUMF amount, unless t h e t e m p o r a r y f e e r e d u c t i o n i s s t i l l i n e f f e c t a t the time of the subsequent. No provision o f t h e t e m p o r a r y T U M F r e d u c t i o n s h a l l e n t i t l e any person who has already paid TUMF to r e c e i v e a r e f u n d , c r e d i t o r r e i m b u r s e m e n t o f such payment." WRCOG 3 Addendum I - Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 A1-2.0 TUMF NEXUS IMPLICATIONS The action of the WRCOG Execu t i v e C o m m i t t e e t o t e m p o r a r i l y r e d u c e T U M F proportionally reduces the fees paid b y e a c h n e w d e v e l o p m e n t t o m i t i g a t e i t s i m p a c t on the regional transportation system . S i n c e t h e t r a n s p o r t a t i o n i m p a c t o f a p a r t i c u l a r development is a constant from the pe r s p e c t i v e o f t h e P r o g r a m , a r e d u c t i o n i n t h e f e e s paid by the development means that t h e d e v e l o p m e n t i s n o l o n g e r c o n t r i b u t i n g a f a i r share of the total cost to mitigate the c u m u l a t i v e i m p a c t s o f n e w d e v e l o p m e n t o n t h e regional transportation system based on t h e T U M F P r o g r a m N e x u s S t u d y . A s a r e s u l t , t h e entire program basis must be adjuste d a c c o r d i n g l y t o e n s u r e t h a t e a c h d e v e l o p m e n t continues to contribute a fair share of t h e t o t a l P r o g r a m c o s t s w i t h o u t u n d u l y b u r d e n i n g later projects to make up the TUMF r e v e n u e s t h a t a r e e f f e c t i v e l y f o r f e i t e d d u r i n g t h e temporary reduction period. The program adjustment will be re f l e c t e d i n a c o m m e n s u r a t e r e d u c t i o n i n t h e maximum TUMF share of the costs for e a c h p r o j e c t i n t h e P r o g r a m . S u b s e q u e n t l y , t h e TUMF revenues available for program m i n g e l i g i b l e p r o j e c t a c t i v i t i e s , i n c l u d i n g p l a n n i n g , design and construction, along with c r e d i t s a n d r e i m b u r s e m e n t s , a r e a l s o r e d u c e d proportionately. In addition to assuring t h e P r o g r a m N e x u s , t h e s e a d j u s t m e n t s p r e v e n t an imbalance in the TUMF Program r e v e n u e s t h a t a r e b e i n g p r o g r a m m e d f r o m occurring due to the temporary reduc t i o n i n t h e s h a r e o f p r o j e c t c o s t s b e i n g c o l l e c t e d . In effect, the adjustments ensures an a p p r o p r i a t e b a l a n c e i s m a i n t a i n e d b e t w e e n t h e overall fee revenue that is generate d a t t h e r e d u c e d f e e l e v e l s c o m p a r e d t o t h e eligible project costs upon which the TU M F i s b a s e d a n d t h e r e v e n u e s e x p e n d e d . Despite the reduction in the level of t h e f e e , t h e t r a n s p o r t a t i o n i m p a c t o f a n y n e w development remains constant and th e r e d u c t i o n i n f e e s m e a n s t h a t t h e d e v e l o p m e n t is no longer contributing a fair shar e o f t h e c o s t t o m i t i g a t e i t s i m p a c t s . S i n c e t h e burden to mitigate the impacts of th e d e v e l o p m e n t c a n n o t b e p a s s e d o n t o o t h e r developments through the TUMF progra m , i f i s n e c e s s a r y f o r t h e T U M F r e v e n u e s t h a t a r e forfeited during the temporary reducti o n p e r i o d t o b e m a d e u p f r o m o t h e r s o u r c e s . The following sections will summarize th e a d j u s t m e n t s t o t h e T U M F P r o g r a m N e x u s b a s e d on the 2009 Program Update Nexus S t u d y . S p e c i f i c a l l y , t h e f o l l o w i n g s e c t i o n s w i l l describe the adjustments to the max i m u m T U M F s h a r e o f t h e v a r i o u s N e t w o r k a n d Transit project costs before providing th e a d j u s t e d F e e S c h e d u l e . T h e f o l l o w i n g s e c t i o n s will also address the issue of the resulta n t P r o g r a m f u n d i n g s h o r t f a l l . WRCOG 4 Addendum 1 -Temporary Fee Reduct i o n TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 A1-2.1 Maximum Eligible TUMF Share The calculation of the TUMF is based on the three basic variables - u n i t c o s t assumptions, recommended network improvements, and the change in de v e l o p m e n t . In general, the fee for the TUMF program is calculated based on the followin g f o r m u l a : Unit Cost Assumptions x Recommended Network Improvements = TUAAF Change in Residential and Non-Residential Development Applying this formula, unit cost assumptions for the various eligible TUMF pr o j e c t t y p e s are used to estimate the overall cost to improve the TUMF Network as descr i b e d i n t h e TUMF Nexus Study. The resultant maximum eligible network improveme n t c o s t ( o r maximum TUMF share is then divided proportionally between various resid e n t i a l a n d non-residential development categories such that each new develop m e n t t y p e contributes its 'fair share' to the program. Any change in one formula vari a b l e h a s a related impact on the overall fee, although it is important to note that the r e s u l t a n t impact to the overall fee is not necessarily directly proportional to the formul a v a r i a b l e change due to the intricacies of the fee calculation. In contrast, a discretionary change in the fee (such as the temporary 5 0 % f e e reduction) represents a change in the resultant value of this formula. As d e s c r i b e d previously, this change subsequently needs to be reflected in the basis for t h e f e e i n order to maintain the Program Nexus and ensure a balance between fee re v e n u e s a n d eligible expenditures. This change can be reflected by making a com m e n s u r a t e adjustment to the numerator (the maximum TUMF share) in the TUMF equat i o n . B a s e d on the methodology to calculate the maximum TUMF share, this can be acc o m p l i s h e d most easily by reducing the unit cost assumptions proportional to the reco m m e n d e d fee reduction. The adjusted unit cost assumptions and resultant adjusted maximum TUMF sha r e will not represent the fair share cost to mitigate the cumulative regional impac t s o f n e w development on the transportation system. The resultant value repre s e n t s t h e proportional share of the maximum eligible network improvement cost t h a t w i l l b e collected by the Program based on a temporarily reduced fee level. This am o u n t a l s o represents the maximum TUMF share that can be programmed for expendi t u r e o n a project. Since administration of the Program is a relatively fixed cost, the Admi n i s t r a t i o n multiplier was increased to 5% for the period of the fee reduction to ensure s u f f i c i e n t revenues are generated to administer the Program during this time. Table A1-2.1 presents the adjusted maximum eligible network improvement cost based on the temporary fee reduction. Table A1-2.2 provides the adjusted Schedule of Fees in accordance with the WRCOG Executive Committee action of October 5, 2 0 0 9 . WRCOG 5 Addendum 1 - Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 Table Al -2.1 - TUMF Network Cost Estimates - 50% ADJUSTED 0.95 2.04 1.94 1.89 3.71 2.00 0.99 4.13 1.67 2.20 0.52 2.00 3.50 1.66 0.30 2.24 0.35 4.55 1.00 249 0.50 175 1,47 1.00 2.09 2.29 1.07 0.61 4,98 6.52 6,92 0.97 5.95 3,35 3.04 2.68 /60 2.81 0.89 0.52 0.56 2.01 2,21 5.92 202 3.44 3.10 0.43 1,27 1.22 1.26 0.76 5.79 0.28 0.66 3,21 6.11 1,53 0.50 0.50 0.23 0.27 0.31 1.97 1.43 3.60 4.41 1.89 Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Central Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Menifee Menifee Men/tee Menitee Menlfee Mena ee Menifee Mentfee Menifee Menitee Menlfee MenHee Menitee Men/tee Men/tee Moreno Valley Moreno Valley Moreno Volley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Penis Penis Perris Perris Penis Penis Perris Perris Perris Perils Perris Penis Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unicorporated Unincorporated Corona Corona Corona Corona Corona Corona Riverside Riverside Riverside Riverside Riverside Riverside Riverside Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated STREETNAME Ethanac Ethanac Goetz Menifee Men/fee Menifee Menifee Men/tee Men/tee Newport Newport Newport Scott Scott SR-74 Alessandro Alessandro Alessandro Alessandro Gilman Springs Perris Penis Penis Penis Reche Vista 11 th/Case Ethanac Ethanac Mid-County Penis Pettis Penis Perris Ramona Ramona Ramona SR-74 14thl Ethan= Ethanac Gilman Springs Menifee Mid-County Ramona Ramona Reche Canyon Scott SP-74 Foothill Foothill Foothill Green River Green River Green River Alessandro Arlington Arlington Van Buren Van Buren Van Buren Van Buren Alessandro Alessandro Calalco Calalco Calalco Calalco Calalco Calaico Schliesman Schilesman Schilesman SchHesman Schliesman Schilesman Schliesman Van Buren Van Buren Van Buren Van Buren SEGMENTFROM Goetz Murrieta Case SR-74 (Pinacate) Holland Garbani Simpson Aldergate Newport Goetz Moo/eta 1-215 1-215 Murrieta Matthews 1-215 Penis Nason Moreno Beach SP-60 Reche Vista Ironwood Sunnymead Cactus tech* Canyon Perris Keystone 1-2 15 1-215 Harley Knox Ramona Citrus Nuevo 1-215 Perris Evans Ellis SR-74 Sherman Alessandro Ramona Rider Rider Pico San Bernardino County Briggs Ethanac Paseo Grande Lincoln California SR-91 Dominguez Ranch Palisades Arlington North Magnolia Santa Ana River SR-91 Wood Trautwein Trautwein Vista Grande El Sobrante Harley John Harvil 1-15 Temescal Canyon La Sierra San Bernardino County Harrison Sumner Cleveland A Street Hamner 1-15 SR-60 Bellegrave Mockingbird Canyon Orange Terrace SEGMENTTO Munieta I-215 Ethanac Simpson Garbani Scott Aldergate Newport Holland Munleta 1-215 Menffee Briggs 1-215 Briggs Penis Nason Moreno Beach Gilman Springs Alessandro Ironwood Sunnymead Cactus Harley Knox Heacock Goetz Goetz Sherman Rider Ramona Citrus Nueva 11th Perris Evans Rider 1-2 1 5 Keystone Matthews Bridge SR-74 tPinacate) Bridge Pico Bridge Roche Vista SR-79 (Winchester) Ellis Lincoln California I-15 Dominguez Ranch Palisades Paseo Grande Trautwein Magnolia Alessandro SR-91 Mockingbird Canyon Trautwein Orange Terrace Vista Grande 1-215 Harley John Hawn 1-215 Temescal Canyon La Sierra El Sobrante Harrison Sumner Cleveland A Street Hamner 1-15 ArRngton Sellegrave Santa Ma River Wood 1-215 51,110,000 520,935.000 $4,552,000 $2 218000 $2,660.000 $6,103,000 $1,778,000 $4,840,000 $9,854,000 $3,550,000 $8 081,000 $717,000 $9,427,000 $3,303,000 $539,000 $6,804,000 $626,000 $41,159,000 $2,333,000 $2,922,000 ao 54.386.000 $18,787,000 $3.039,000 $3.746,000 $16,153,000 $2,506,000 $13,913.000 $6.789,000 $7,638.000 $10,616,000 51,136.000 $24,804,000 $10,446,000 $7,122,000 $0 $10,609,000 $0 $1,594,000 $931,000 $1,114,000 $0 $0 $0 $11,451,000 $17,429,000 $5.353,000 $0 $1.782,000 $0 $0 $2,063,000 $20,722,000 $333,000 $17,336.000 $11,468.000 $19,044,000 $7.172.000 $1.790,000 $2,692,000 $1.237,000 $980,000 533,398.000 512,972,0130 $2,562,000 $6,451,000 57,907,000 $35,123,000 $1,086,000 $20,266,000 $4, 552,000 $2.218,000 $2.660,000 $6,100,000 $1,778,000 $4,840,000 $9,604,000 $3.550.000 $8,081.000 $683,000 $6,975,000 $2,548,000 $539,000 $6,804.000 $626,000 541,159,000 $1,696.000 52,917,000 $0 $3,010,000 $18,754,000 $3,039.000 $3,746,000 $16,153,000 $2.506000 $13,913,000 $5,020000 $7.638.000 510,616,000 51,136.000 $23.851.000 $8,771,000 $7.122.000 $0 -$17,420,000 $0 $1,594,000 5646.000 51.101,000 $0 $0 $0 $10,313.000 $15.462,000 $2,598,000 $0 $1,755,000 $0 $0 $1,786,000 $20,325,000 $333,000 -$7.907,000 511,468,000 $19,044,000 $7.172,000 $1.790,000 $2,692.000 $1,237,000 5980,000 533,398,000 $12,972,000 $1.096,000 $2,785,000 $6,174,000 $34,358,000 AREA PLAN 01ST CITY MILES ADJUSTED COST ADJ MAX TOME SHARE 099 $1,770,000 $1,770000 090 59.509.000 $9,509,000 2.00 $4010000 $3,534,000 2.49 $3,751000 $3,751.000 1.03 $0 $0 1-00 $1,170,000 $1,170000 01,4 $1,499,000 $1,499.000 0.98 $0 $0 107 $0 $0 1.81 51,273,000 $1,273,000 2.05 518,552,000 $18,552,000 $13,130.000 $13,130,000 WRCOG 6 Addendum 1 -Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 Table Al -2.1 - TUMF Network Cost Estimates - 50% ADJUSTED (continued) AREA PLAN DIST CITY Pass Beaumont Pass Beaumont Pass Beaumont Pass Unicorporated Pass Unincorporated Pass Unincorporated Pass Unincorporated San Jacinto Hemet San Jacinto Hornet San Jacinto Hemet San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto Unincorporated San Jacinto Unincorporated San Jacinto Unincorporated San Jacinto Unincorporated San Jacinto Unincorporated San Jacinto Unincorporated San Jacinto Unincorporated San Jacinto Unincorporated San Jacinto Unincorporated San Jacinto Unincorporated Southwest Canyon lake Southwest Canyon lake Southwest take Elsinore Southwest Munlefa Southwest Murrieta Southwest Murrieta Southwest Munieta Southwest Murrieta Southwest Murrieta Southwest Munieta Southwest Temecula Southwest Temecula Southwest Temecula Southwest Temecula Southwest Temecula Southwest Wildomor Southwest Wildomar Southwest Wlidomar Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Subtotal STREETNAME Beaumont Potrero SR-79 (Beaumont) SR-74 (Beaumont) Potrero Potrero 58-79 (Lamb Canyon) Domenigoni Domenigoni SR-74 Mid-County Ramona Ramona Ramona Ramona Ramona Domenigoni Gilman Springs Mid-County Ramona SR-74 58 -79 (Hemet Bypass) SR-79 (Hemet Bypass) SR-79 (San Jacinto Bypass) SR-79 (Sanderson) SR-79 (Winchester) Goetz Railroad Canyon Railroad Canyon Clinton Keith Clinton Keith Clinton Keith Clinton Kett!' French Uzi/ley (Date) Meadowlark (Menifeel Menifee French Valley French Valley French Valley French Valley 511-79 (Winchester) Bundy Canyon Bundy Canyon Clinton Keith Benton Clinton Keith Newport Newport SR-74 S1-79 (Eastern Bypass/Washir SR-79 (Eastern Bypass) 51-7I (Eastern Bypass/Anna) SR-79 (Eastern Bypass/Anna) SR-79 (Eastern Bypass/Ansa) 51-79 (Eastern Bypass) SR-79 (Eastern Bypass) 51-79 (Winchester) SR-79 (Winchester) SR-79 (Winchester) SR-79 (Winchester) SEGMENTFROM Oak Valley 114f hl Oak Valley (San Timoteo 1-10 Mellow 4th 1st California Warren Sanderson Winchester Warren Warren Sanderson State Main Cedar SR-79 Winchester' Bridge Bridge Bridge Briggs SR-74 (Florida) Domenigonl Ramona Gilman Springs Domenigoni Railroad Canyon Canyon Hills 1-15 1-15 Copper Craft Toulon 1-215 SR-79 (Winchester) Keller Scott Margarita The: Murrieta Creek Rancho California Munieta Hot Springs 1-15 Sunset Palomar SP-79 Meadowlark Menifee Lindenberger 1-15 51-79 (Winchester) Bardl Vino SR-79 (Constance) Santa Rita Fairview Palo Keller Thompson La Alba Hunter SEGMENTTO 1-10 Canyon' 4th Mellow California 111 58-79 (Beaumont) Gilman Springs Sanderson State Warren Sanderson Sanderson State Main Cedar SR-74 Warren Sanderson Warren Warren SR-79 (Winchester' Domenlgoni Winchester SR-74 (Florida) Ramona Keller Newport Goetz Canyon Hills Copper Craft Toulon 1-215 Meadowlark Margarita Clinton Keith Keller Roes Murrieta Creek Rancho California 1-15 (Front) Jefferson Sunset Murrieta 1-15 Eastern Bypass SR-79 lindenberger SR-79 (Winchester) Ethanac Bardl Vino SR-79 (Constance) Santa Rita Fairview Pala I-15 Thompson La Alba Hunter Murrieta Hot Springs MILES ADJUSTED COST ADJ MAX TUMF SHARE 1.37 50 SO 1.17 $34,596,000 $0 0.80 $7,896.000 $0 0.38 50 50 0.4.5 $1,054,000 $1,054,000 2.03 $5.550,000 $5,550,000 4.87 50 $0 I. 77 52.075,000 52,075.000 2.14 $0 $0 2.59 54,641,000 53.668,000 1.73 $3,099,000 $3,099,000 1.73 53.099,000 $3,099,000 2.39 58.565,000 56.830000 266 $4,778.000 $4.650,000 2.08 $8,715.000 58.710000 1.10 $0 $0 3.10 $4,880,000 $4.392.000 2.95 $3,454.000 $3,454,000 2.35 $2,752,000 $2,752.000 2.35 55.505,000 $5,505,000 353 $4.130,000 $4.130.000 3.22 $31,226,000 $31.226,000 1.50 $5,272,000 $5,272,000 6.50 538,995,000 $38,995,000 1.92 513,103,000 $12,253,000 4.90 $17,583.000 $11,524,000 0.50 $1,826,000 $1.343,000 1.95 53,865.000 53,753,000 2.29 517,494,000 $17,494.000 2.48 513,706,000 $13,394,000 0.83 $0 $0 0.83 $17.123,000 $17,123.000 0.75 $875,000 $875,000 1.03 $1,852,000 $1,852,000 2.00 54,685,000 $4,685,000 1.08 $0 $0 0.91 $0 $0 1.29 538.875.000 $25,954,000 2.36 511,566,000 $11,566.000 1.86 $26,791,000 $10,413,000 2.70 57.896.000 $7.896,000 3.42 517.222,000 $17,222.000 1.01 52,357.000 52.357.000 0.55 $0 $0 2.40 52,814.000 $2,814,000 2.54 $23,958.000 $23,958,000 0.77 50 $0 3.58 50 50 4.89 522,828.000 522,784.000 4.52 $5.713,000 55.713,000 4.04 512,693,000 $12,693.000 4.49 $6,125,000 $6,125,000 1.14 $3.945,000 $3,945,000 1.77 $4,829,000 $4,829,000 1.48 $4,039,000 $4,039,000 4.21 $30,958,000 $30,958,000 2.47 54,423,000 54,423,000 1.81 $3,248,000 $1,810,000 0.50 $903,000 $381,000 1.14 50 50 295.15 $1,056,393,000 $892,539,000 WRCOG 7 Addendum 1 - Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 AREA PLAN DIST CITY Centro Menifee Centro Centro Centro Centro Centro Centro Centro Centro Centro Contra Centro Centro Contra Contra Contra Centro Centro Centro Contra Centro Centro Centro Contra Contra Contra Contra Centro Contra Centro Contra Centro Contra Centro Contra Centro Centro Contra Contra Centro Centro Centro Centro Centro Contra Centro Contra Central Centro Central Centro Contra Central Centro Contra Centro Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Menifee Menifee Menifee Menifee Menitee Menifee Menifee Menifee Menifee Monroe Moreno Valley Moreno Volley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno VaHey Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Moreno Valley Penis Perris Penis Perris Penis Perris Penis Perris Pens Perris Perris Penis Penis Perris Perris Perris Perris Perris Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Corona Table Al -2.1 - TUMF Network Cost Estimates - 50% ADJUSTED (continued) STREETNAME SEGMENTFROM Briggs Newport Goetz Juanita Goetz Newport Holland Antelope McCall Menifee McCall SR-79 (Winchester) McColl k215 McCall Aspel Murrieta Ethanac Murrieta McCall Murrieta Newport Cactus 1-215 Eucalyptus 1-215 Eucalyptus Towngate Frederick SR-60 Heacock Cactus Heacock Reche Vista Heacock San Michele Ironwood SR-60 Lasselle Eucalyptus Lass elle Alessandro LasseRe John F Kennedy Moreno Beach Reche Canyon Nason Ironwood Pigeon Pass Ironwood Pigeon Pass/CETAP Corridor Cantarini Reche Canyon Roche Vista Redlands Locust Sunnymead Frederick Ellis SR-74 (4th) Evans Placentia Evans Morgan Evans Nuevo Evans Oleander Evans Placentia Evans Rider Goetz Lesser Harley Knox 1-215 Harley Knox Indian Harley Knox Penis Nuevo k215 Nuevo Murrieta Placentia k215 Placentia Indian Placentia Redlands Placentia Wilson SR-74 {Matthews) 1-215(mostly in Perris) Briggs SR-74 (Phonate) Briggs Simpson Center (Main) 1-215 Ells Post Mount Vernon/CETAP Corti& Center Nuevo Dunlap Pigeon Pass/CETAP Corridor Cantarini Post Santa Rosa Mine Redlands San Timoteo Canyon 611-1 SR-91 Auto Center Railroad Hidden Valley Norco Hills Lincoln Partridge Magnolia 6th Magnolia Sherborn Magnolia Rimpau Main Grand Main Ontario Main Hidden Valley Main Partridge Main SR-91 McKinley Hidden Valley McKinley Promenade McKinley SR-91 Ontario 1-15 Ontario Lincoln Ontario Buena Vista Ontario Main Ontario Kellogg Ontario Fullerton Ontario Rimpau Railroad Auto Club Railroad Sherman River Corydon Serfas Club SR-91 SEGMENRO Scott Lesser Lane Juanita Houn SR 79 (Winchester) Warren Aspel Menif ee McCall Newport Bundy Canyon Heacock Towngate Frederick Alessandro San Michele Cactus Harley Knox Redlands Alessandro John F Kennedy Oleander SR-60 Alessandro SR-60 Ironwood Moreno Beach Alessandro Perris 1-215 Nuevo Ramona 1-215 Ramona Rider Morgan Ethanac Indian Perris Evans Murrieta Dunlap Indian Redlands Wilson Evans Ethanac Simpson Newport Mt Vernon SR-74 Pigeon Pass Menifee Mount Vernon Ellis Locust Magnolia SR-91 McKinley Ontario Sherbom Rimpau Ontario Ontario Foothill Parkrldge SR-91 S. Grand Promenade SR-91 Magnolia El Cerrito Buena Vista Main Kellogg Fullerton Rimpau 1-15 Sherman Main fat Grand) Main Green River MILES ADJUSTED COST ADJ MAX TUMF SHARE 305 $3574.000 $3.574000 2.61 $3,0S7.000 $2.966.000 126 $0 $0 $6,511000 $6.511.000 $5,209,000 $5,209.000 $3,016,000 $3.016000 $9.334.000 $9.334000 $2,235,000 $2,235,000 $1,621,000 $1.621000 $0 $0 $0 $0 $18,587,000 $18,587,000 $1345000 $1.345.000 $0 $0 $0 $0 $4,880.000 $3,362,000 $0 $0 01,496,000 $1,238,000 $17,756000 $17,756.000 $1,073.000 $1,073.000 $1,437.000 $1437000 $0 $0 $18,606,000 $113,606000 $18,688.000 $18,688,000 $0 $0 $1,161,000 $1.161,000 $0 $0 $20961,000 $20613000 $0 $0 $26,187,000 $26,187,000 $985,000 $985.000 $693000 $693.000 $8,011,000 $8,011,000 $0 $0 $0 $0 $580.000 $580000 $1,218.000 $977.000 $10.644,000 $10,644,000 $224030 $224,000 $3696,000 $3,696,000 $10,330,000 $10.330,000 $2,156,000 $2,156,000 $17,020,000 $17,020,000 $1,170.000 $1,170.000 $0 $0 $4,270,000 $4.270.000 $7,896,000 $7,896,000 $5,857,000 $5,857,000 $4,294,000 $4,294,000 $16.733,000 $16,733,000 $3,102,000 $3,102.000 $945,000 $945,000 $4,012,000 $4.012.000 $10,544,000 $10 544,000 $0 $0 $0 $0 $0 $0 $6.148,000 $0 $0 $0 $0 $0 $2,352,000 $2,352,000 $0 $0 $0 $0 $1.031,000 $975,000 $0 $0 $624,000 $479,000 $0 $0 $2365000 $2,365,000 $0 $0 $0 $0 $21071.000 $19,171.000 $1.693000 $1,693000 $577,000 $316,000 $0 $0 $0 $0 $884000 $884.000 $0 $0 $0 $0 $6,148,000 $6,148 000 $2,265,000 $1,513,000 $0 $0 $0 $0 1.00 4.45 258 1,23 095 1.95 203 3,00 1.81 100 0.67 1.55 2,79 4.73 O. 74 8,46 1.00 100 3,14 1,37 2.02 0.43 3.23 4.02 2.68 2.02 1.92 1.50 0 59 1.99 0.99 0.58 0.49 1,04 1.53 0.50 1.03 1.36 100 0.37 1D0 0.25 0,75 1.25 250 1.53 150 2 65 0.61 2.00 3,38 0.44 2.60 4,84 0.30 0.59 3.20 061 0.39 1.17 0.88 0,74 030 0.86 0,86 057 0.33 021 094 032 0.65 0.78 022 0.42 0. 60 1.97 1.26 2.27 0.96 WRCOG 8 Addendum 1 - Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 Table Al -2.1 - TUMF Network Cost Estimates - 50% ADJUSTED (continued) AREA PLAN DIST CITY Northwest Norco Northwest Norco Northwest Norco Northwest Norco Northwest Norco Northwest Norco Northwest Norco Northwest Norco Northwest Norco Northwest Norco Northwest NOMO Northwest Norco Northwest Norco Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Riverside Northwest Unincorporated Northwest Unincorporated Northwest Unincorporated Northwest Unincorporated Northwest Unincorporated Northwest Unincorporated Northwest Unincorporated Northwest Unincorporated Northwest Unincorporated STREETNAME 1st 1st 2nd 6th Arlington California Corydon Hamner Hidden Valley Hidden Valley Norco North River 14th 3rd Adorns Adams Buena Vista Canyon Crest Canyon Crest Canyon Crest Canyon Crest Central Central Central Central Chicago Chicago Columbia Iowa lowa JFK La Sierra La Siena La Sierra Lemon /NB One way) Lincoln Lincoln Lincoln Lincoln Madison Magnolia Magnolia Magnolia Main Market Martin Luther King Mission Inn Overlook Overlook Overlook Overlook Overlook Redwood tSB One way) Trautwein Tyler Tyler Tyler Tyler University University Victoria Washington Wood Wood Wood Archibald Armstrong Bellgrave Cantu-Galleano Ranch Cantu-Galleon° Ranch Dos Lagos Weirick El Cerrito Etiwanda Etiwanda SEGMENTFROM Parkridge Mountian River Hamner North Arlington River Santa Ana River 1-15 Hamner Corydon California Archibald Market Market Chicago SR-91 SR-91 Santa Ana River Central Country Club Via Vista Martin Luther King Chicago 5R-91 Alessandro Van Buren Alessandro Spruce Main Center 3rd Trautwein Arlington SR-91 Indiana Mission Inn Adorns Van Buren Washington Victoria SR-9 I BNSF RR La Sierra Harrison 1st 14th 14th Redwood Sandtrack Washington Bodewin/Via Montecito Crystal View Via Vista Mission Inn Alessandro SR-91 Magnolia Hole Wells Redwood SR-91 Madison Victoria JFK Van Buren Bergarnont San Bernardino County San Bernardino County Contu-Golleano Ranch Hamner Winevitle Temescal Canyon San Bernardino County SR-60 SEGMENTTO Mountion Hamner I-15 California Arlington 6th 5th Hidden Valley Norco Hills 1-15 Hamner Arlington Corydon Martin Luther King Main 1-215 Arlington Lincoln Redwood Country Club Via Vista Alessandro Central I-215/SR-60 Magnolia SR-91 Magnolia Spruce Columbia Iowa 3rd University Wood SR-RI Indiana Victoria University Washington Adams Victoria Arlington Victoria La Sierra Harrison 14th San Bernardino County Santa Ana River 1-215/SR-60 Lemon Alessandro Bodewin/Via Montecito Crystal View Via Vista Sandtrack University Van Buren Magnolia Hole Wells Arington SR-91 1-215/5R-60 Washington Hermosa Van Buren Bergamont Krameria River Volley Van Buren Wineville Bellgrave 1-15 Ontario SR-60 Limonite MILES ADJUSTED COST ADJ MAX TUMF SHARE 0.26 $300 000 $300a00 0,26 $0 $0 1.44 $1,682.000 $1.160.000 1.71 $7,896.000 $7,896000 0,97 $1,141,000 $1.141,000 0_98 $1,759,000 $ $759.000 1.46 $2,628.000 $2.628,000 305 $5,476.000 $5,476.000 152 $0 $0 0.13 $0 $0 1,20 $2.159,000 $2,159,000 0.81 $0 $0 1.14 $2045000 $1,164.000 0.89 $0 $0 0.08 $0 $0 0.36 $0 $0 1.56 $0 $0 0.54 $6,148,000 $6.148,000 0.30 $0 $0 0.59 $0 $0 0,94 $1,284,000 $927,000 0.68 $0 $0 0.95 $0 $0 2.15 $0 $0 0.76 51.363,000 $1,363.000 205 $0 $0 3.53 $0 $0 3_42 $0 $0 0,75 513.195,000 $13,195,000 1.09 $14.044.000 $14,044,000 2.25 $13,254.000 $13,254,000 0.51 $0 $0 0.48 $0 $0 3,56 $0 $0 0.19 $0 $0 0,78 $0 $0 0.08 $0 $0 1.55 $0 $0 1.54 $0 $0 1.43 52.567.000 $2,567.000 0.28 $0 $0 0.86 $6,148,000 $6,148.000 309 $6,148000 $6.148,000 /70 $0 $0 5.98 $6,148.000 86,148,000 2.19 $0 $0 2,03 $0 $0 2.11 $3,788,000 $3,447.000 0,79 $0 $0 0.32 $0 $0 0,56 $0 $0 081 $1,606.000 $1,606,000 0.55 $6,361.000 $6,361,000 063 $1,252,000 $1,252,000 0.08 $0 $0 2,19 $0 $0 0.43 $16,153,000 $16,153,000 0.27 $0 $0 1.06 $0 $0 1.35 52.424.000 $2.424.000 086 $0 $0 2,01 $0 $0 0,52 $0 $0 2.05 $3,686.000 53,686,000 0.70 $410,000 $410,000 0.11 $0 $0 039 $184,000 $184,000 3.63 $6,628,000 55,617,000 1,53 $687.000 $583,000 0.29 $337.000 $304,000 094 $0 $0 1.82 $3,411,000 $3.411,000 0.21 $0 $0 056 $651,000 $651,000 IOU $0 $0 3.00 $0 $0 WRCOG 9 Addendum 1 -Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 AREA PLAN DDT CITY Northwest Unincorporated Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Banning Banning Banning Banning Banning Banning Banning Banning Banning Banning Banning Banning Banning Beaumont Beaumont Beaumont Beaumont Beaumont Beaumont Beaumont Beaumont Beaumont Beaumont Beaumont Beaumont Beaumont Calirnesa Calimesa Calimesa Calimesa Calimesa Calimesa Calimesa Unincorporated Unincorporated Unincorporated Unincorporated Hemet Hemet Hemet Hemet Hemet Hemet Hemet Hemet Hornet Hemet Hemet Hemet Hemet Hemet Hemet Table Al -2.1 - TUMF Network Cost Estimates - 50% ADJUSTED (continued) SEGMENTFROM SEGMENTTO Bel!grave Amberhill Amberhill Limonite Limonite Schleisman Schleisman Santa Anna River Mission Bell-grave Washington Scottsdale Scottsdale Cajalco Victoria El Sobrante El Sobrante Calaic° Archibald Hamner Hamner 1-15 1-15 Wineville Etiwanda Etiwanda Van Buren Van Buren Clay Clay Riverview Rubidoux Santa Ana River Milliken SR-60 58-60 Santa Ana River Van Buren CojaIca Limonite Mission San Bernardino County Mission Ontario Tuscany Tuscany Dos Lagos Dos Lagos Leroy Leroy Dawson Canyon Dawson Canyon 1-15 1-15 Park Canyon Park Canyon Indian Truck Trail Armstrong Mission Hermosa Harley John Krameria Caia'co Wilson I-10 Oak Valley (14th) Wilson (8th) Cherry Valley Oak Valley (14th) i-10 Apache Trail Sunset SR-243 1-10 Wilson (8th) Wilson (131h) Highland Springs I-I 0 Wesley Highland Home Sunset Highland Springs Highland Home Ramsey Lincoln Highland Home Wilson (8th) Highland Springs Highland Home Viele Pennsylvania Pennsylvania Highland Springs 1-10 Highland Springs Champions Oak Vakley (STC) Wilson (8th) Sun Lakes Highland Springs Pennsylvania Pennsylvania Oak View Oak View 1-10 Beaumont City Limits Cherry Valley (1St / Central Ovenl Cherry Valley fJ St / Central Over t.1-10 6th 4th 6th 4th County Line Singleton County Line 1-10 Roberts Palmer I-10 Bryant Cherry Valley Champions Bryant Condit Condit Roberts Highland Springs Noble Noble Desert Lawn Oak Valley {STC) San Bernardino County San Bernardino County Beaumont City Limits Acacia Menlo Damenigoni Stetson RR Crossing Acacia Stetson RR Crossing Menlo Esplanade Warren Cawston Columbia Ramona Cawston Columbia Domenigoni Chambers Chambers Stetson Florida Esplanade Stetson Florida Cawston State Watten Cawston Esplanade Dornenigoni STREETNAME Hamner kiamner Hamner Hamner Hamner Harley John Harley John La Sierra La Sierra Limonite Limonite Limonite Limonite Limonite Limonite Limonite Market Mission Mission Mockingbird Canyon Riverview Rubidoux Temescal Canyon Temescol Canyon Temescal Canyon Temescal Canyon Temescal Canyon Temescal Canyon Temescal Canyon Valley Washington Wood 8th Highland Springs Highland Springs 1-10 Bypass South Lincoln Ramsey Ramsey SR-243 Sun Lakes Sun Lakes Sunset Wilson (8th) Wilson {8th) I st 1st 6th Desert Lawn Highland Springs Oak Valley (141h) Oak Valley (14th) Oak Valley (14thl Oak Valley (STC) Oak Valley (SIC) Pennsylvania Viele Vie le Bryant Calimesa Chem/ Valley County Line Desert Lawn Singleton Singleton Cherry Valley Cherry Valley Live Oak Canyon Oak Valley (STCI Sanderson Sanderson Sanderson Sanderson Sanderson SR-74 SR-74 (Florida) SR-74/SR-79 {Florida) State State State State Stetson Stetson Warren MILES ADJUSTED COST ADJ MAX TUMF SHARE 042 $486.000 $486,000 0.49 $1,151,000 $925,000 1.00 $1,168.000 $1.168000 1.29 $13036.000 $12850.000 1.11 $1,299,000 $1.278.000 0.12 $0 $0 1.19 51,392,000 $1,392,000 2.22 $0 $0 2.36 $o $o 1.99 $2,337,000 52,187.000 0.62 $8.617,000 $8,376.000 040 $0 $0 0.99 $0 $0 2.72 $6,370,000 $4,651,000 0,79 $930.000 $930,000 245 $0 $0 1.74 $6,221.000 $5.878000 1.61 $O $0 7.39 $0 $0 4.34 $5,916,000 $5,788,000 0.95 $0 $0 2.65 $7,896,000 $7.896,000 0.65 $707,000 $707,000 0.91 $0 $O 1.10 $1,506,000 $1,506,000 1.89 $2,573.000 $2.573000 0.28 $7,896,000 $7,896,000 3.41 $5,309,000 $5.309,000 2.55 $3,475,000 53.475,000 0.48 $0 $0 3.96 $4,641,000 $4,641,000 2.99 $3.499.000 $3,499,000 0.54 $0 $0 0.73 $1.316,000 5658.000 1_53 52,752,000 $1,376,000 3.29 $15.041.000 $15041,000 2.01 $0 $0 1.70 $0 $0 3.55 $0 $0 0.62 $0 $O 100 $5.258.000 55,258000 1.33 $0 $0 0.28 $21.597,000 521,597,000 2.51 $0 $0 1,01 $1,807,000 $1,807.000 1.28 $2,304,000 $0 1.10 $0 $0 2.24 $0 $0 0.99 $1,155,000 $0 0.76 $9,262,000 $8,579,000 1,13 $0 $0 1.40 $0 $0 0,65 $10,269,000 $0 3.46 $0 $0 1.67 $1,952,000 $0 0.53 $7.896,000 $0 0.31 $559.000 $0 0.50 $14100.000 $0 0,38 $O $0 0.80 516,153.000 $16,153,000 0.50 $582,000 $0 1.76 $9,476.000 $9,476,000 1.61 $1,882,000 $1,882.000 1.86 $5,081,000 $5,081,000 0.85 $17,679,000 $17,679,000 0.95 $2,231,000 $2,231,000 3,40 $21.383000 521.383.000 2.81 $0 $0 5.65 $6,598,000 $6,598,000 0.98 $0 $0 1.08 $0 $0 042 $0 $0 0.58 $0 $0 1.00 $1,794000 5895,000 1.02 $0 $0 2.58 $0 $0 403 $0 $0 1.31 $0 $0 0.51 $0 $0 1.74 $0 $0 1.25 $3,440 000 52,469,000 2.52 $0 $0 1.00 $1,170,000 51,170.000 4.99 $7,096,000 $6,697,000 WRCOG Addendum 1 -Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 STREETNAME Esplanade Esplanade Esplanade Sanderson SP-79 (North Ramona) 59-79 (San Jacinto) SP-79 (Son Jacinto) State State Street State Street Warren Gilman Springs SR-79 (Winchester) Diamond Grand Grand Lake Mission SR-74 (Collier/Rix 59-74 (Grand) SR-74 (Riverside) California Oaks California Oaks Jefferson Jefferson Jefferson Los Alamos Los Alamos Munieta Hot Springs Murrieta Hot Springs Munieta Hot Springs Nutmeg Whitewood Jefferson Margarita Old Town Front Pechanga Pechanga Rancho California Rancho California 511-79 (Temecula( SR-79 (Temecula) Baxter Bundy Canyon Central Mission Palomar Palomar Briggs Butterfield Stage Butterfield Stage Butterfield Stage Butterfield Stage Central Grand Honethief Canyon Indian Truck Trail Murrieta Hot Spnngs Pala Temescal Canyon SEGMENTTO Mountain State Warren Esplanade San Jacinto SR-74 7th Esplanade Ctuandt Ranch Ramona Esplanade State Domenigoni I-15 Taft SP-74 /Riverside) Lincoln Bundy Canyon Lakeshore SR-74 (Ortega) Grand 115 Clinton Keith Cherry Nutmeg Murrieta Hot Springs 1-15 1-215 Margarita 1-215 SR-79 (Winchester) Clinton Keith Los Alamos Rancho California SR-79 (Temecula) I-15/5R-79 Via Gilberto Pechanga Pond Margarita Butterfield Stage Pechanga Butterfield Stage Palomar 1-15 Palomar Palomar Jefferson Clinton Keith SR-79 (Winchester) Rancho California 59-79 (Temecula) Auld Murrieta Hot Springs Palomar Central 1-15 I-15 Portray San Diego County Lake SEGMENTFROM Pomona Mountain State Ramona State 7th North Ramona Blvd Ramona Gilman Springs Ouandt Ranch Ramona Sanderson SR-74 (Florida) Mission Lincoln Taft 1-15 Railroad Canyon del 1-15 Riverside Lakeshore Jefferson 1-15 Murrieta Hot Springs Palomar Nutmeg Jefferson 1-15 1-215 Jefferson Margarita Jefferson Clinton Keith Cherry Murrieta Hot Springs Rancho California SR-79 (Temecula) Via Gilberto Jefferson Margarita 1-15 Pechanga Road 1-15 Mission Baxter Bundy Canyon Clinton Keith Mission Scott Murrieta Hot Springs Rancho California SR-79 (Winchester) Auld Grand Ortega Temescal Canyon Temescal Canyon 59-79 (Winchester) Pechanga Indian Truck Trail MILES ADJUSTED COST Alit MA.X TEMP SHARE 025 $717,000 $717.000 2.55 $0 $0 353 $4138000 $4,138.000 $4,155 000 $2081000 00 $0 $0 $443 000 $0 $1675000 $0 $4 066000 $2.368000 355 1g2 2.25 015 1.99 0.76 0.70 3,47 2.54 3,23 024 1.29 0.86 3.10 239 2.10 0.64 1.74 0.32 2.26 2.26 1.02 237 0.38 139 1 48 1.11 1.01 197 201 2,29 738 1.45 1.32 1.44 1.89 1.96 0.64 3.08 0.37 0.94 0.74 0.84 0.74 2.79 339 1.78 2,30 2.28 2.23 051 698 0.17 0.18 1.75 1.38 1,21 471.25 $0 $2,388.000 $8,502,000 $2,135,000 02.501000 $0 $0 $1,180,000 $0 00 $0 $0 $0 $0 $0 $9,981.000 $5,410.000 $750,000 $0 $8.327,000 $1.679.000 $1120.000 $0 $862.000 $3166,000 03,973,000 $10,294,000 $3,131000 $3.1 11,000 $9,843.000 $916,000 $12.526.000 $199,000 $8,306.000 $0 $0 $2,061000 $912.160,000 00 $443.000 $0 $2,980,000 $0 $4,066.000 $3.399.000 $0 $281.000 $0 $603.000 $11,071.000 $0 $7,539.000 $2.2133,000 $5.608000 $16.722.000 00 $o $268000 $0 $603.000 $10.191,000 $0 $5.823,000 $1,968000 $5,473,000 $16,722,000 $0 $0 $2,388.000 $8.052000 $2,135.000 $2.398.000 $0 $0 $723,000 $0 $0 $0 $0 $0 $0 $0 $9,192.000 $5,410,000 $61,000 00 $8,327,000 $1,679,000 $1,320.000 $0 $862.000 $3.266000 $3.973,000 $10,294,000 $3 132.000 $3,111.000 $9.843,000 0916.000 $11526,000 $199,000 $8.306.000 $0 $0 $2.062,000 $841,520000 Table Al -2.1 - TUMF Network Cost Estimates - 50% ADJUSTED (continued) AREA PLAN DIET CITY San Jacinto San Jactnto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto Son Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto San Jacinto Unincorporated San Jacinto Unincorporated Southwest Lake Elsinore Southwest Lake Elsinore Southwest Lake Elsinore Southwest Lake Elsinore Southwest Lake Elsinore Southwest Lake Elsinore Southwest Lake Elsinore Southwest Lake Elsinore Southwest Murrieta Southwest Murrieta Southwest Munieta Southwest Murrieta Southwest Murrieta Southwest Murrieta Southwest Murrieta Southwest Murrieta Southwest Murrieta Southwest Murrieta Southwest Murrieta Southwest Murrieta Southwest Temecula Southwest Temecula Southwest Temecula Southwest Temecula Southwest Temecula Southwest Temecula Southwest Temecula Southwest Temecula Southwest Temecula Southwest Wildomar Southwest Wildomar Southwest Wildomor Southwest Wildomar Southwest Wildomor Southwest Wildomar Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Southwest Unincorporated Subtotal Totals Network 766.40 $ 1.968,553,000 0 1,734,059,000 Transit $ 83.473.000 $ 30.913.000 AdminIstraHon $ 87.600,000 $ 87.600,000 MSHCP 31.183 000 $ 29 ,979 000 Total $ 2,170,809.000 $ 1,882.551.006 WRCOG 11 Addendum 1 -Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 Table Al -2.2 - TUMF Schedule of Fees - 50% ADJUSTED Fee Levels (2009 CCI Adjustment as adopted February 2, 2009) February 2, 2009 through October 5, 2009 Land Use Type Units Fee Per Unit Single Family Residential DU $ 9,812 Multi Family Residential DU $ 6,890 Industrial SF GFA $ 1.84 Retail SF GFA $ 9.99 Service SF GFA $ 5.71 Class A & B Office** SF GFA $ 2.19 Fee Levels (2009 Nexus Update - 50% ADJUSTED - as adopted October 5, 2009) October 6, 2009 through December 31, 2010* Land Use Type Units Fee Per Unit Single Family Residential DU $ 4,437 Multi Family Residential DU $ 3,115 Industrial SF GFA $ 0.86 Retail SF GFA $ 5.24 Service SF GFA $ 2.10 Class A & B Office** SF GFA $ 1.10 Fee Levels (2009 Nexus Update as adopted October 5, 2009) After December 31, 2010* Land Use Type Units Fee Per Unit Single Family Residential DU $ 8,873 Multi Family Residential DU $ 6,231 Industrial SF GFA $ 1.73 Retail SF GFA $ 10.49 Service SF GFA $ 4.19 Class A & B Office** SF GFA $ 2.19 Notes: • - Actual implementation date and fee levels may be adjusted for in accordance with local TUMF ordinances ** - Class A & B Office fee after July 1, 2007 to be reviewed based on results of detailed market analysis. A detailed breakdown of the adjusted maximum TUMF share for projects on the TUMF Network is included as Appendix Al -C to this Addendum. WRCOG 12 Addendum 1 -Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 Al -2.2 TUMF Program Revenue Shortfall Since the transportation impact of any new development remains constant as determined in the TUMF Nexus Study, the 50% reduction in fees means that the development is no longer contributing a fair share of the cost to mitigate its impacts. This effectively means that the TUMF Program is no longer able to collect sufficient revenues from new development to mitigate these impacts. Section 66001 (d) (3) of the California Government Code requires a local authority that imposes an impact fee program to "identify (on at least a five yearly basis) all sources and amounts of funding anticipated to complete financing in incomplete improvements identified in paragraph (2) of subdivision (a)" which refers to the "public facilities for which the fee is charged". Because the 50% reduction in the TUMF effectively forfeits a substantial portion of the funding that would be necessary to complete the facilities identified in the Nexus Study, it is necessary for the revenue shortfall to be made up from other sources. In accordance with the provision of the Mitigation Fee Act, it is necessary for WRCOG to identify the specific sources of revenue to be used for this purpose. The Nexus Study for the TUMF Program is intended to establish the full funding fair share to complete facility improvements that are needed to mitigate the impacts of new development. However, as described in the TUMF Administrative Plan, the TUMF "Program is not designed to be the only source of revenue to construct the identified facilities, and it will be necessary for matching funds from a variety of available sources to be provided." As a result of the TUMF Ordinance exemption of Government and Public Sector land uses and certain other land use types, the phased implementation of other Non-Residential land uses, and statutory provisions for vesting rights, the TUMF program inherently includes a funding shortfall. Based on the estimated fair share established in the TUMF Nexus Study completed for the 2009 Program Update, approximately 9% of the TUMF mitigation need can be attributed to the impact of Government and Public Sector land uses that are exempt by Ordinance from paying the fee. Furthermore, the 10-Year Strategic Plan previously estimated that approximately 2% of the estimated TUMF revenues will not be captured as a result of the original multi-year phase-in of TUMF for non-residential land uses, while an additional 5% will not be captured as a result of pre-existing local agency developer agreements and project vesting. Combined, these exemptions and waivers create an overall program shortfall of approximately 16% which equates to approximately $602 million based on the Nexus Study completed for the 2009 Program Update, or approximately $21.5 million on a prorated annualized basis. In the past, the TUMF program has addressed the inherent program revenue shortfall that results from TUMF Ordinance exemptions and other statutory limitations through encouraging sponsoring agencies and private developers to voluntarily provide alternate revenue match (either as cash, in-lieu contributions or exactions). This voluntary use of alternate funding match is formalized in the 10-Year Strategic Plan as a criterion for ranking and prioritizing projects during programming. Typically this voluntary match has resulted in the Program meeting the inherent revenue shortfall of WRCOG 13 Addendum 1 - Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 approximately 15% to 20%. The temporary fee reduction will substantially incre a s e t h e amount of the TUMF revenue shortfall that will be created during the pe r i o d t h e reduction is in effect. The temporary fee reduction will effectively reduce the fee revenue genera t e d b y a further 42% (50% of the 84% of revenues that would be otherwise generated b a s e d o n the pre-existing TUMF Ordinance and statutory limitations). This would equate t o a t o t a l of approximately $2.2 billion in revenues being forfeited over the life of the P r o g r a m based on the Nexus Study completed for the 2009 Program Update, or appro x i m a t e l y $78 million on a prorated annualized basis. Since the actual rate of develo p m e n t i n Western Riverside County in recent years has been substantially below the hi s t o r i c a l average, it is likely the actual revenue shortfall observed during the fee r e d u c t i o n period would be less than the prorated annualized estimate. Howev e r , o n a percentage basis, the revenue forfeited remains effectively consistent regard l e s s o f t h e rate of development, ands since the level of impact (and the resultant cost to m i t i g a t e the impact) is directly proportional to the rate of development, the funding sh o r t f a l l w i l l remain approximately 58% of the fair share cost of mitigation that is attributa b l e t o t h e new development that occurs during the fee reduction period. In other word s , o n l y 42% of the fair share cost to mitigate the impacts of new development will act u a l l y b e collected during the reduced fee period. Consistent with the narrative described in the TUMF Administrative Plan, t h e l o c a l sponsoring agencies and private developers have a responsibility to seek al t e r n a t i v e funding sources to meet the TUMF program funding shortfall. Alternate match t o m e e t the TUMF funding shortfall could include the utilization of traditional transp o r t a t i o n funding sources (such as STP, CMAQ, Measure A and other discretionary fede r a l , s t a t e or local transportation funds) and in-kind services (such as local agency p l a n n i n g , engineering or right of way acquisition, or right of way and roadway facility de d i c a t i o n s by private developers). The importance of local agencies and private dev e l o p e r s seeking alternative funding sources to meet the program funding shortfall i s f u r t h e r emphasized by the significant increase in the proportional share of the fundin g s h o r t f a l l that will be created by each new development that does not contribute a f a i r s h a r e toward the cost to mitigate transportation impacts during the reduced fee per i o d . As described previously, it is estimated that the funding shortfall during t h e f e e reduction period will be 58% of the fair share cost of mitigation that is attributa b l e t o t h e new development that occurs, based on the TUMF Nexus Study completed for t h e 2 0 0 9 Program Update. Historically, sponsoring agencies and private developers h a v e n o t demonstrated an ability to voluntarily provide such a substantial funding ma t c h a n d therefore additional measures will be required to ensure the Program funding s h o r t f a l l can be adequately met. To ensure the funding shortfall is adequately addr e s s e d i n accordance with the provision of the Mitigation Fee Act, a mandatory alterna t e m a t c h requirement may need to be established as part of the programm i n g a n d implementation of all TUMF project, including projects sponsored by public a g e n c i e s and those completed by private developers. WRCOG 14 Addendum 1 - Temporary Fee Reduction TUMF Nexus Study- 2009 Program Update Adopted October 5, 2009 A1 -3.0 APPENDICES Appendix Al -A Riverside County Board of Supervisors July 21, 2009 Action Appendix Al -B Riverside Economic Development Red Team Leifer, August 24, 2009 Appendix Al -C TUMF Network Detailed Cost Estimate - 50% ADJUSTED WRCOG 15 Addendum 1 -Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5 2009 Appendix Al -A Riverside County Board of Supervisors July 21, 2009 Actio n WRCOG Addendum 1 - Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 SUBMITTAL DATE: July 2, 2009 $ Unknown $ N/A $ N/A N/A N/A 2009/10 1 I I 1 County Executive Office Signature In Current Year Budget: Budget Adjustment: For Fiscal Year: Positions To Be Deleted Per A-30 Requires 4/5 Vote ( Geore Johnson, Dir ctor Transportation an and Management Agency Current F.Y. Total Cost: Current F.Y. Net County Cost: Annual Net County Cost: {SOURCE OF FUNDS: De 0 C.E.O. RECOMMENDATION: 0 0 0 Dept Recomm Buster, Tavaglione, Stone, Wilson and Ashley None None 'y Jii104:`009 TLMA, E.O., VVRCOG, COB(2) Ayes: Nays: Absent: Date: xc: Kecia Harper-lhem ClerPthp Board Deputy SUBMITTAL TO THE BOARD OF SUPERVISORS COUNTY OF RIVERSIDE, STATE OF CALIFORNIA FROM: Transportation and Land Management Agency (TLMA) SUBJECT: Temporary Reduction of Development Impact Fees (DIF). RECOMMENDED MOTION: That the Board of Supervisors: Re-introduce and adopt, on successive weeks, Ordinance No. 659.8, an Ordinance of the County of Riverside Amending Ordinance No. 659; and Find the adoption of Ordinance No. 659.8 is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty there is no possibility the ordinance may have a significant effect on the environment; and Adopt Resolution No. 2009-236, a Resolution of the Riverside County Board of Supervisors encouraging the Western Riverside Council of Governments (WRCOG) to implement the Red Team recommendations for a Transportation Uniform Mitigation Fee (TUMF) Reduction; and Direct TLMA and the Executive Office to report to the Board bi-annually on the temporary DIF reduction; and Direct the Executive Office to work with the appropriate County Departments to establish a procedure to offset the loss of Development Impact Fee revenues. CONTINUED ON PAGE 2 CS- MINUTES OF THE BOARD OF SUPERVISORS On motion of Supervisor Buster, seconded by Supervisor Wilson and duly carried by unanimous vote, IT WAS ORDERED that the above matter is approved as recommended and that Ordinance 659.8 is approved as re-introduced with waiver of the reading. Prey. Agn. Ref.: 385- June 30, 2009 I District: All ATTACHMENTS FILED WITH THE CLERK OF THE BOARD Agenda Number: 3.80 Board of Supervisors July 2, 2009 Page 2 BACKGROUND: At the June 30, 2009, Board of Supervisors meeting, the Board expressed a desire to increase the amount of the temporary fee reduction from 30% to 50%, but to limit the reduction to a one-year time period. Staff has revised the proposed ordinance amendment to show a 50% temporary reduction in fees for a period of one year. The Board reiterated its desire to have TLMA present bi-annual reports on the status of the temporary DIF reduction and make recommendations for program changes if appropriate. An additional recommended motion is included in this Form 11 to address the Board of Supervisors' desire to look for ways to offset any potential loss of DIF revenues. The Executive Office would work with other appropriate county departments, including the Auditor-Controller, to establish a mechanism or procedure that would identify funding from other sources for infrastructure projects to offset the loss of DIF revenues. GJ:GN:kh ORDINANCE NO. 659.8 AN ORDINANCE OF THE COUNTY OF RIVERSIDE AMENDING ORDINANCE NO. 659 AND CHAPTER 4.60 OF THE RIVERSIDE COUNTY CODE ESTABLISHING DEVELOPMENT IMPACT FEES 2 3 4 The Board of Supervisors of the County of Riverside ordains as follows: Section 1. The title of Ordinance No. 659 is amended to read as follows: "ORDINANCE NO. 659 AN ORDINANCE OF THE COUNTY OF RIVERSIDE ESTABLISHING A DEVELOPMENT IMPACT FEE PROGRAM" Section 2. A new Section 15. is added to Ordinance No. 659 to read as follows: "Section 15. TEMPORARY REDUCTION OF FEES. Pursuant to the fee adjustment authority set forth in Section 14. of this ordinance and notwithstanding Section 7. or any other provision of this ordinance, the DIF amounts in effect on the effective date of Ordinance No. 659.8 shall be temporarily reduced by fifty percent (50%) for the period commencing on August 20, 2009 and ending on August 20, 2010. a. Application. The temporary fee reduction described in this section shall not apply to or affect fees owed under any development agreement or other contractual arrangement in effect on or before the effective date of Ordinance No. 659.8. If reduced fees are paid at the time application is made for a building permit and either the application or the building permit issued on the application expires, subsequent building permit applications on the same parcel shall be subject to the full DIF amount, unless the temporary fee reduction is still in effect at the time of the subsequent application. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 b. Effect. No provision of this section shall entitle any person who has already paid Development Impact Fees to receive a refund, credit or reimbursement of such payment. This ordinance does not create any new Development Impact Fees or increase the amount of any existing Development Impact Fees. This ordinance only effects a temporary change in the County's existing Development Impact Fees. c. Expiration. As of August 20, 2010, this section is repealed without further action by the Board of Supervisors, unless the Board of Supervisors repeals or modifies this section prior to that date. The repeal of this section shall not affect the validity of actions taken or Development Impact Fees paid under the authority of this section." Section 3. Existing Sections 15. through 22. of Ordinance No. 659 are renumbered Sections 16. through 23. respectively. Section 4. Existing Section 17. of Ordinance No. 659 is amended to read as follows: "Section 18. CREDITS. If an owner or developer of real property 20 dedicates land or constructs facilities identified in the Public Facilities Needs List, the County 21 may grant the owner or developer a Credit in one or more of the Fee Components described in this ordinance against the Development Impact Fees required. No Credit shall be granted for the cost of improvements not defined herein as "Facilities." An owner or developer may request a Credit from the Transportation and Land Management Agency at the time of development approval. A Credit granted at the time of development approval shall be included as a condition of that approval. After development approval, but before the issuance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 22 23 24 25 26 27 28 2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1 18 d 19 0 20 26 27 of a building permit, an owner or developer may request a Credit from the Executive Office. If the Transportation and Land Management Agency or the Executive Office determines that a Credit is appropriate, the owner or developer shall enter into a Credit Agreement which shall be approved by the Board of Supervisors. The Credit amount shall be initially calculated by estimating the fair market value of the land dedicated or by estimating the cost of constructing Facilities. The County shall subsequently review and determine the actual value of the land dedicated and the actual construction costs allowable. Any Credit granted shall not exceed the allocated cost for the Facilities. Any Credit granted shall be given in stated dollar amounts only." Section 5. This ordinance shall take effect thirty (30) days after its adoption. BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA By: Chairman ATTEST: CLERK OF THE BOARD: By: Deputy (SEAL) 28 3 1 Board of Supervisors County of Riverside 2 3 RESOLUTION NO. 2009-236 4 ENCOURAGING THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS (WRCOG) 5 TO IMPLEMENT THE RED TEAM RECOMMENDATIONS 6 FOR A TUMF REDUCTION 7 8 WHEREAS, the County of Riverside is a member of the Red Team comprised of public and private 9 sector representatives which was formed to identify and address the housing issues existing in the region; 10 and 11 12 13 home sales and new home construction; and 14 15 16 17 18 19 WHEREAS, according to the U.S. Department of Labor, the County of Riverside is experiencing 20 double digit unemployment rates and for the month of May had an unemployment rate of 13.1% which 21 was higher than the state's unemployment rate of 11.5%; and 22 23 24 and 25 26 WHEREAS, these higher unemployment rates further erode the economic recovery of the region; WHEREAS, Economist John Husing, Ph.D. has extensively studied the city and county economies 27 II of Southern California and particularly the Inland Empire; and 28 WHEREAS, the County of Riverside is experiencing unprecedented declines in housing prices, new WHEREAS, this decline has delayed planned residential projects and planned commercial and industrial projects which provide local jobs and tax revenues, support balanced growth and help fund public safety and other services that enhance quality of life; and 1 WHEREAS, Dr. Husing participated in the Red Team and was commissioned by t h e p r i v a t e s e c t o r 2 to develop a strategy for dealing with the major economic issues facing the re g i o n t o d a y ; a n d 3 4 WHEREAS, Dr. Husing prepared a report dated May 11, 2009 that recommends j u r i s d i c t i o n s 5 reduce fees in order to stimulate the economy and promote housing starts and j o b g r o w t h ; a n d 6 7 WHEREAS, the Red Team concurs with the report and recommendation; and 8 9 WHEREAS, the County of Riverside has temporarily reduced its development i m p a c t f e e s a n d 10 implemented several economic stimulus measures to promote job and econo m i c g r o w t h s u c h a s p u b l i c 11 works projects, summer jobs programs and first time homebuyer incentives; a n d 12 13 WHEREAS, several cities and school districts have also reduced development fee s a n d 14 implemented local economic recovery strategies; and 15 16 WHEREAS, the Western Regional Council of Governments (WRCOG) developed a n d a d m i n i s t e r s 17 Western Riverside County's Transportation Uniform Mitigation Fee Progra m ( T U M F ) a n d m a n a g e s t h e F.; 18 implementation of the regional arterial road network; now, therefore, wNo 19 20 BE IT RESOLVED, FOUND, DETERMINED, AND ORDERED by the Boar d o f S u p e r v i s o r s o 0 (-2 —A 21 the County of Riverside, State of California, in regular session assemble d o n J u l y 1 4 , 2 0 0 9 , t h a t i t h e r e b : 22 requests the Executive Committee of WRCOG reduce TUMF Program fee s a s o u t l i n e d i n D r . H u s i n g ' 0„..L12 a 1 0 23 May 11, 2009 report. \J • <24 28 Appendix Al -B Riverside Economic Development Red Team Letter, Augu s t 2 4 , 2 0 0 9 WRCOG Addendum 1 - Temporary Fee Reduction TUMF Nexus Study - 2009 Program Update Adopted October 5, 2009 CITY OF kIVEr&51.1)12, August 24, 2009 Mr. Rick Bishop Executive Director Western Riverside Council of Governments 4080 Lemon Street, 3rd Floor Riverside, CA 92501 Dear Mr. Bishop: Last year at this time, business, community and government leaders from Western Riverside County gathered to discuss the worsening economy. Our region was battered by foreclosures, job losses and declining local government revenues. But instead of just waiting and hoping for an economic rebound, we formed the Riverside Economic Development RED TEAM to identify actions that could be taken to spur recovery in the housing sector and protect our quality of life. The RED TEAM, working with one of the Inland Empire's most respected economists, Dr. John Husing, and the Western Riverside Council of Governments, examined the situation and recommended three goals critical to a recovery: • Defend communities from the impact of having large numbers of dilapidated or rental properties injected into single family detached neighborhoods. • Cut off the growing supply of foreclosed homes, so prices can stabilize and the market can return to responding to traditional supply and demand forces. • Reduce the cost of building new homes so that the new home building industry can put people back to work. Until it does, the serious recession will continue. We're pleased to report that since the RED TEAM adopted its final recommendations in 2009, progress has been made. Public-private partnerships are investing to purchase, refurbish and sell foreclosed properties to homebuyers. Some lenders are working to try and help residents prevent foreclosure. And many local governments have acted to create jobs and jump-start the economy by deferring and/or reducing construction fees. Clearly, the RED TEAM has made a difference and it is the direct result of the work of so many dedicated community leaders. But our letter is not simply recognition of progress to date. Now, more than ever, we must stay focused and committed to our respective communities. State budget uncertainty means that we must fight to protect our region. We must stay focused on the three RED TEAM goals and work to make them reality. Thank you for all that you do to make Riverside County and its cities a better place. Sincerely, Ronald 0. 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P 44,...1) 61.35 cospesn, coassoa anop Mo •SMII P orwayIns ..4,..tl itluxis 7....W1 aft, pta,3:1,0 P.,... 1.711,1 0,,,,,t,,, 011,13.0B 1,07131,01491S 31.01311, 4171.11311,1,1 VISV 031SCIRIV .GOS - 1..3 p.rn.a vomt.N AiNni VD-tV 119111X3 g6 grrt., Plot .1311[VI n.994 mot 7 fol ung,it uo,..,,,taw, pa, 61, EXHIBIT Al -C.2 - TUMF Regional Transit Cost Estimate - 50% ADJUSTED AREA PLAN DIST LEAD AGENCY PROJECT NAME LOCATION UNITS (number/ length in miles) ADJUSTED TOTAL ADJ MAX TUMF SHARE Regional RTA Regional Transit Centers Various locations region wide I 1 31,103,000 11,519000 Regional RTA Bus Stop Amenities Upgrade Various locations region wide 70 945,000 350,000 Northwest/Central RTA Central Spine Service Capital Corona, Riverside, Moreno Valley 24 6.600,000 2,444,000 Northwest/Pass RTA SR60 Regional Flyer Capital SR-60 corridor from SB Co. to Banning 45 12,375,000 4,583,000 Northwest/San Jacinto RTA I-215/SR74 Regional Flyer Capi I-215/SR-74 corridor from Riverside to San Jacir 37 10,175,000 3,768,000 Northwest/Southwest RTA I-I 5 Regional Flyer Capital 1-15 Corridor from SB Co. to Temecula 49 13,475,000 4,990,000 Regional RTA Regional Flyer Vehicle Fleet Various routes region wide 32 8,800,000 3,259,000 Total 83,473,000 30,913,000 STATE OF CALIFORNIA) RESOLUTION NO. COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY OF SAN JACINTO ESTABLISHING A REVISED AND UPDATED FEE SCHEDULE APPLICABLE UNDER THE WESTERN RIVERSIDE COUNTY TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) PROGRAM AND ADOPTING A TEMPORARY TUMF REDUCTION NOW, THEREFORE, BE IT RESOLVED determined and ordered by the City Council of the City of San Jacinto: Section 1. Title and Findings. This Resolution shall be know as the "Western Riverside County Transportation Uniform Mitigation Fee Program Resolution of 2009" ("Resolution"). Pursuant to the Mitigation Fee Act (Gov. Code §§ 66000 et seq.) the City Council hereby readopts all findings included in Ordinance No. , including those findings made in the 2009 Nexus Study and its Addendum. Section 2. Establishment of the Transportation Uniform Mitigation Fee Schedule. In accordance with Ordinance No. , adopted by the City Council on December 10, 2009, the City Council adopts the following TUMF schedule applicable to all new development projects, applicable beginning January 1, 2010: (1) $8,873.00 per single family residential unit (2) $6,231.00 per multi-family residential unit (3) $ 1.73 per square foot of an industrial project (4) $10.49 per square foot of a retail commercial project (5) $ 4.19 per square foot of a service commercial project (6) $ 2.19 per square foot of a service Class A and B Office Section 3. Temporary TUMF Reduction Period. i Notwithstanding Section 4A of Ordinance No. and the fee established in Section 2 of this Resolution, the City Council hereby adopts a reduced TUMF fee schedule as indicated below, applicable only through December 31, 2010. All other sections of Ordinance No. shall still be effect during this temporary fee reduction period. After December 31, 2010, the regular TUMF schedule adopted in Section 2 of this Resolution, or as revised by the City Council from time to time through a separate resolution, shall automatically apply. (1) $4,437.00 per single family residential unit (2) $3,115.00 per multi-family residential unit (3) $ 0.86 per square foot of an industrial project (4) $ 5.24 per square foot of a retail commercial project (5) $ 2.10 per square foot of a service commercial project (6) $ 1.10 per square foot of a service Class A and B Office 1 ii. If reduced fees are paid pursuant to this Section 31 at the time application is made for a building permit and either the application or the building permit expires, subsequent building permit application on the same parcel shall be subject to the full TUMF amount, unless the temporary fee reduction period is still in effect at the time the subsequent application is made. (iii) No provision of this Resolution shall entitle any person who has already paid the TUMF to receive a refund, credit or reimbursement of such payment. This Resolution does not create any new TUMF. Section 5. Severability. If any one or more of the terms, provisions or sections of this Resolution shall to any extent be judged invalid, unenforceable and/or voidable for any reason whatsoever by a court of competent jurisdiction, then each and all of the remaining terms, provisions and sections of this Resolution shall not be affected thereby and shall be valid and enforceable. Section 6. Effective Date. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED and ADOPTED, this 5th day of November 2009, by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto by Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk APPROVED AS TO FORM: BEST, BEST & KRIEGER LLP Jeffrey S. Ballinger, City Attorney 2 AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Enclosure: Staff Report for meeting of [CC or RDA] (date) (name — brief description) Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) City Departments Item Attachments include (this needs to match the attachment list in the Staff Report: A. B. C. Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting DATE: [Name or Initials], [Title] S: \City Clerk \Transmittal Form for Staff Report.doc Approvals City Manager: Finance Director: AGENDA ITEM 3A.- November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Tim HuIts, Assistant City Manager SUBJECT: Resolution consenting to the inclusion in the Western Riverside Council of Governments (WRCOG) Energy Efficiency and Water Conservation Program RECOMMENDATION: Staff recommends that the City Council, by motion, adopt Resolution No. consenting to the inclusion in the WRCOG Energy Efficiency and Water Conservation Program. BACKGROUND: WRCOG is developing an Energy Efficiency and Water Conservation Program that would allow for residents and businesses to implement energy efficient improvements using low-interest loans that would be repaid over time through annual property tax payments. California law (AB 811) allows for local jurisdictions to enter into contractual assessments with property owners for such improvements; WRCOG is proposing to implement a regional program on behalf of its member jurisdictions in order to centralize responsibilities and realize cost savings. DISCUSSION: WRCOG has requested a $300 million Federal Government loan to fund the Program. WRCOG will utilize this federal loan to implement and administer the Program, providing secured, low interest loans to residential and commercial properties for the purchase and installation of energy efficient projects. The Program goal is to offer low interest loans to 13,500 residential and commercial properties in Western Riverside County to install energy efficient projects, such as solar panels, heating and air conditioning systems, lighting control systems, windows, and pool equipment. These loans would be paid back through voluntary contractual annual assessments between WRCOG and property owners within a specified amount of time. In order to allow for City residents and business owners to participate, the City would have adopt the attached Resolution and execute the attached implementing agreement. The implementing agreement provides for all administration to be provided by WRCOG. Also attached is a Frequently Asked Questions document that describes the Program in detail. Page 1 of 2 ALTERNATIVES: 1. Adopt the Resolution authoring participation in the Program. 2. Decline to participate in the Program. FISCAL IMPACT: There is no fiscal impact upon the City for participation in the Program. WRCOG will assume complete control of the Program and handle all administrative functions. ATTACHMENTS: Resolution Implementing Agreement Frequently Asked Questions document Page 2 of 2 STATE OF CALIFORNIA) RESOLUTION NO. COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY'S INCORPORATED AREA IN THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS CONTRACTUAL ASSESSMENT PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS WHEREAS, the City of San Jacinto (the "City") is committed to the development of renewable energy sources and energy efficiency improvements, reduction of greenhouse gases, and protection of our environment; and WHEREAS, in Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act"), the Legislature has authorized cities and counties to assist property owners in financing the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently fixed to their property (the "Improvements") through a contractual assessment program; and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the jurisdictions that are members of the Western Riverside Council of Governments ("WRCOG") would promote the purposes cited above and assist the member agencies of WRCOG (each, a "Member Agency" or, together, "Member Agencies"), including the City in reducing its greenhouse gas emissions; and WHEREAS, the City wishes to provide innovative solutions and cost- effective methods for its property owners to achieve greater energy efficiency and independence, and in doing so cooperate with WRCOG in order to efficiently and economically assist property owners in financing such Improvements; and WHEREAS, WRCOG has authority to establish a contractual assessment program ("the Program") as permitted by the Act, the Joint Powers Agreement of the Western Riverside Council of Governments, originally made and entered into April 1, 1991, as amended to date, and the Implementation Agreement by and between WRCOG and the affected Member Agencies related to the Program to assist property owners in financing the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently affixed to real property; and WHEREAS, WRCOG is conducting an analysis to determine the feasibility of the Program, and to develop parameters pursuant to the Act for implementation and administration of the Program; and WHEREAS, the City wishes to participate with WRCOG in the Program if WRCOG adopts the Program, under terms and conditions to be agreed to by the City and WRCOG; and WHEREAS, state law permits WRCOG to offer participation in the Program to property owners in incorporated areas of any Member Agency so long as the City Council or Board of such Member Agency approves the proposed Resolution of Intention (defined below) to establish the Program, consents to the inclusion in the Program of properties in the incorporated area within such Member Agency and consents to the Improvements to be done within such incorporated area and the assumption of jurisdiction thereover by WRCOG for the purposes described above; and WHEREAS, this City Council has reviewed WRCOG's proposed Resolution of Intention to establish the Program entitled "Resolution of the Western Riverside Council of Governments Declaring its Intention to Finance Distributed Generation Renewable Energy Sources and Energy Efficiency Improvements Through the Use of Contractual Assessments" ("Resolution of Intention") attached hereto as Exhibit A; NOW, THEREFORE, BE IT RESOLVED determined and ordered by the City Council of the City of San Jacinto: 1. The City Council finds and declares that property in the City's incorporated area will be benefited by the Improvements proposed in the Resolution of Intention. 2. The City Council hereby supports WRCOG's ongoing feasibility analysis and development of the Program. 3. Before the Program is implemented in the City, the City and WRCOG shall reach an agreement addressing any conditions the City wishes to impose on participating properties within the City. 4. The City Council hereby approves the proposed Resolution of Intention, substantially in the form attached hereto as Exhibit A. 5. The City Council hereby finds and determines that in the event it is necessary for the Executive Committee to make minor, nonsubstantive changes to the Resolution of Intention; such minor, nonsubstantive changes do not require the approval of this City Council. 6. The City Council consents to inclusion in the Program of all of the properties in the incorporated area within City and to the Improvements proposed in the Resolution of Intention within the City limits, upon the request and agreement of the property owner, in compliance with applicable laws, rules and regulations; and to the assumption of jurisdiction thereover by WRCOG for the purposes aforesaid. 7. The consent of this City Council constitutes assent to the assumption of jurisdiction by WRCOG for all purposes of the Program and authorizes WRCOG, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent such contractual assessments. 8. Staff is authorized and directed to coordinate with WRCOG staff to facilitate operation of the Program, and report back periodically to this City Council on the success of the Program. 9. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the WRCOG Executive Committee. 10. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED and ADOPTED, this 5th day of November 2009, by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto by Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk APPROVED AS TO FORM: BEST, BEST & KRIEGER LLP Jeffrey S. Ballinger, City Attorney EXHIBIT A WRCOG RESOLUTION OF INTENTION RESOLUTION NUMBER RESOLUTION OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS DECLARING ITS INTENTON TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS THROUGH THE USE OF CONTRACTUAL ASSESSMENTS PURSUANT TO CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND SETTING A PUBLIC HEARING THEREON WHEREAS, pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act"), the Joint Powers Agreement of the Western Riverside Council of Governments (WRCOG), originally made and entered into April 1, 1991, as further amended to date, and the Implementation Agreement by and between WRCOG and the affected Member Agencies related to the Program (defined below), the Western Riverside Council of Governments proposes to establish a contractual assessment program to assist property owners within the jurisdictional boundaries of WRCOG's member agencies (each, a "Member Agency" and, together, the "Member Agencies") with the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently fixed to their property ("Program"); and WHEREAS, in the opinion of this Executive Committee, property in the Member Agencies would be benefited by including such properties in the Program, subject to the approval/consent of the City Council or Board of any Member Agency; and WHEREAS, WRCOG is willing to extend the program into the incorporated areas of any Member Agency provided that the City Council of such Member Agency and WRCOG reach agreement on any conditions on operation of the Program requested by such Member Agency, prior to the Program being offered in such jurisdiction; NOW, THEREFORE, BE IT RESOLVED by the Executive Committee of the Western Riverside Council of Governments as follows: Section 1: The Executive Committee hereby finds and declares all of the following: A. All of the above recitals are true and correct. B. Energy conservation efforts, including the promotion of energy efficiency improvements to residential, commercial, industrial, or other real property, can reduce energy consumption, energy bills, and maximize existing energy production and transmission facilities. C. Energy efficiency improvements include improvements that promote water efficiency. The California Energy Commission prepared a staff report in November 2005 regarding California's water-energy relationship. The report states: "As California continues to struggle with its many critical energy supply and infrastructure challenges, the state must identify and address the points of highest stress. At the top of this list is California's water-energy relationship; water-related energy use consumes 19 percent of the state's electricity, 30 percent of its natural gas, and 88 billion gallons of diesel fuel every year — and this demand is growing. .. . [A] major portion of the solution is closer coordination between the water and energy sectors. . . . The state can meet energy and demand reduction goals . . . by simply recognizing the value of the energy saved for each unit of water saved." The direct relationship between water use and energy use means that improvements to residential, commercial, industrial, or other real property which promote water efficiency also result in energy efficiency. D. The upfront cost of making residential, commercial, industrial, or other real property more energy efficient prevents many property owners from making those improvements. To make those improvements more affordable and to promote the installation of those improvements, the Legislature has authorized an alternative procedure pursuant to the Act for authorizing contractual assessments to finance the cost of energy efficiency improvements. E. A public purpose will be served by a contractual assessment program whereby WRCOG is authorized to finance the installation of distributed generation renewable energy sources and energy efficiency improvements that are permanently fixed to residential commercial, industrial, or other real property. F. Property located in incorporated areas of Member Agencies within WRCOG will benefit from inclusion in the Program; and, subject to the approval/consent of the City Council of any Member Agency, including such property in the Program will serve the public purpose of promoting conservation efforts and addressing the issue of global climate change. Section 2. The Executive Committee hereby determines that it would be convenient, advantageous and in the public interest to designate the entire area of the Member Agencies as an area within which authorized WRCOG officials and property owners may enter into contractual assessments pursuant to the Act to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property. Section 3. The Executive Committee hereby declares that while the proposed distributed generation renewable energy sources and energy efficiency improvements are of such a character that they directly and peculiarly affect property in the Member Agency jurisdictions within WRCOG and that the purposes sought to be accomplished by establishing a program to finance the installation of such improvements can best be accomplished by a single, comprehensive program rather then by separate programs administered by each Member Agency. Therefore, WRCOG proposes to make contractual assessment financing available to the owners of property in any Member Agency to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property. Section 4. The Executive Director of WRCOG (the "Executive Director") shall prepare or direct the preparation of, as part of the report required in Section 8 of this Resolution, and update, as the Executive Director deems necessary, a list of the distributed generation renewable energy sources or energy efficiency improvements that may be financed through WRCOG's contractual assessment financing program. The types of distributed generation renewable energy sources or energy efficiency improvements eligible for financing through contractual assessments include, but are not limited to: high efficiency air conditioning and ventilation systems, high performance windows, high efficiency and tankless water heating equipment, photovoltaic and thermal solar energy systems, cool roof systems, geothermal exchange heat pumps, zoning control and energy management control systems, high efficiency irrigation pumps and controls, natural gas fuel cells, wind and geothermal energy systems, and wall, ceiling and roof insulation upgrades. Section 5. The area within which contractual assessments may be entered into pursuant to the Act is all land within the defined boundaries of the Member Agencies of WRCOG. Section 6. No contractual assessment will be levied on a parcel situated within a Member Agency City area and no assessment contract will be entered into with the owner(s) of any such parcel unless and until (1) the City Council or Board of such Member Agency has, prior to the adoption of this resolution of intention, adopted a resolution consenting to inclusion of parcels within such Member Agency in the contractual assessment program and authorizing WRCOG to levy assessments, to impose the contractual assessment liens and to finance the eligible improvement on such parcels; and (2) the City Council or Board of such Member Agency has entered into an agreement with WRCOG addressing any conditions such Member Agency wishes to impose on participating properties in its jurisdiction. Section 7. The proposed arrangements for financing the contractual assessment financing program are briefly described as follows: WRCOG may issue bonds, notes, receive lines of credit, and enter into other financing instruments or relationships pursuant to the Act, the principal and interest of which would be repaid by contractual assessments. Alternatively or in the interim, WRCOG, may advance its own funds to finance work, or enter into agreements with other public entities, including but not limited to the cities within WRCOG, to advance their funds to WRCOG to finance work. Such advances shall be repaid through contractual assessments and WRCOG may sell bonds or other forms of indebtedness to reimburse such advances. The proposed financing arrangements may include the lease-purchase of public facilities pursuant to a lease or other contractual arrangement with a public financing authority or non profit entity or other financing elements as may be determined necessary or useful to the financing of the contractual assessment program. In the event improvement bonds will be issued pursuant to Streets and Highways Code Section 5898.28 to represent assessments, all of the following will apply to the extent not in conflict with the Act: (a) Provision is hereby made for the issuance of improvement bonds, in one or more series; (b) Notice is hereby given that serial bonds or term bonds or both to represent unpaid assessments, and to bear interest at the rate of not to exceed 12 percent per year, or such other amount authorized by law, payable semiannually, shall be issued hereunder in one or more series in the manner provided by the Division 10 (to the extent not in conflict with the Act), and the last installment of bonds shall mature a maximum of 39 years from the second day of September next succeeding 12 months from their date. (c) VVRCOG hereby determines and declares that WRCOG shall not obligate itself to advance available funds from WRCOG treasury to cure any deficiency which may occur in the bond redemption fund. (d) WRCOG hereby determines that the principal amount of bonds maturing or becoming subject to mandatory prior redemption each year shall be other than an amount equal to an even annual proportion of the aggregate principal amount of the bonds, and the amount of principal maturing or becoming subject to mandatory prior redemption in each year plus the amount of interest payable in that year shall be an aggregate amount that is substantially equal each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. (e) With respect to the procedures for collection of assessments and the advance retirement of bonds, WRCOG proposes to proceed under the provisions of Part 11.1 of Division 10 (commencing with Section 8760 of the Streets and Highways Code). Section 8. The Executive Committee hereby directs the Executive Director to prepare, or direct the preparation of, and file with the Board of Supervisors a report pursuant to Section 5898.22 of the California Streets and Highways Code at or before the time of the public hearing described in Section 8 hereof (the "Report"). The Report shall contain all of the following: (a) A map showing the boundaries of the territory within which contractual assessments are proposed to be offered. (b) A draft contract specifying the terms and conditions that would be agreed to by a property owner within the contractual assessment area and WRCOG. (c) A statement of WRCOG policies concerning contractual assessments including all of the following: (I) Identification of types of facilities, distributed generation renewable energy sources, or energy efficiency improvements that may be financed through the use of contractual assessments; (ii) Identification of a VVRCOG official authorized to enter into contractual assessments on behalf of WRCOG, (iii) A maximum aggregate dollar amount of contractual assessments; and (iv) A method for setting requests from property owners for financing through contractual assessments in priority order in the event that requests appear likely to exceed the authorization amount. (d) A plan for raising a capital amount required to pay for work performed pursuant to contractual assessments. The plan may include amounts to be advanced by WRCOG through funds available to it from any source. The plan may include the sale of a bond or bonds or other financing relationship pursuant to Streets and Highways Code Section 5898.28. The plan shall include a statement of or method for determining the interest rate and time period during which contracting property owners would pay any assessment. The plan shall provide for any reserve fund or funds. The plan shall provide for the apportionment of all or any portion of the costs incidental to financing, administration, and collection of the contractual assessment program among the consenting property owners and WRCOG. Section 9. The Executive Committee hereby calls a public hearing to be held on , 2009 at a.m., or as soon thereafter as feasible, in the First Floor Board Chambers, County of Riverside Administrative Center, 4080 Lemon Street, Riverside, California, on the proposed Report and the Program. At the public hearing all interested persons may appear and hear and be heard and object to or inquire about the proposed Program or any of its particulars. Section 10. The Secretary of the Executive Committee is hereby directed to provide notice of the public hearing by publishing this Resolution once a week for two weeks, pursuant to Section 6066 of the California Government Code, in the [ 1 and the first publication shall not occur later than 20 days before the date of such hearing. Section 11. The contractual assessments levied pursuant to the Act, and the interest and any penalties thereon, shall constitute a lien against the lots and parcels of land on which they are made, until they are paid. The contractual assessments shall be collected in the same manner and at the same time as the general taxes of WRCOG on real property are payable and shall be subject to the same penalties, remedies and lien priorities in the event of delinquency and default. As a cumulative remedy, if any contractual assessment or installment thereof, or of any interest thereon, together with any penalties, costs, fees and other accrued charges are not paid when due, the Executive Committee may order that the same be collected by an action brought in superior court to foreclose the lien thereof as provided in Division 10 of the California Streets and Highways Code. Section 12. The Executive Committee hereby directs the Executive Director to determine and discuss in the Report what additional fees, if any, will be charged, annually, by the Auditor Controller's office for incorporating the proposed contractual assessments on the tax roll. PASSED AND ADOPTED at a Meeting of the Executive Committee of the Western Riverside Council of Governments held this day of , 2009. AYES: Robin Lowe, Chair WRCOG Executive Committee Rick Bishop, Secretary WRCOG Executive Committee NOES: ABSENT: ABSTAIN: IMPLEMENTATION AGREEMENT BETWEEN THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS AND THE CITY OF SAN JACINTO TO IMPLEMENT AB 811 This Implementation Agreement ("Agreement") is entered into as of between the WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS ("WRCOG"), a joint powers authority formed under Government Code sections 6500 et seq., and City of San Jacinto ("Member Agency"), a public agency formed under the laws of the State of California. WRCOG and the Member Agency are sometimes collectively referred to in this Agreement as the "Parties" or individually as a "Party." RECITALS WHEREAS, various cities within Riverside County and the County of Riverside entered into a Joint Powers Agreement on April 1, 1991, as amended from time to time, to create WRCOG ("JPA"); and WHEREAS, Member Agency is a signatory to the JPA; and WHEREAS, Article VIII of JPA permits any WRCOG member agency, when authorized by the Executive Committee, to execute an Implementation Agreement for the purpose of authorizing WRCOG to implement, manage and administer area-wide and regional programs in the interest of the local public welfare; and WHEREAS, the JPA permits WRCOG, when authorized by an Implementation Agreement, to make and enter into such contracts, incur such debts and obligations, assess contributions from the members, and perform such other acts as are necessary to the accomplishment of the purposes of such agreement; and WHEREAS, on June 30, 2008, the State Legislature enacted Assembly Bill 811, codified as Streets and Highways Code sections 5898.10 et seq. ("AB 811") to permit cities and counties to assist property owners who desire to undertake energy-efficient improvements, such as high-efficiency air conditioners, or install renewable energy projects, such as solar panels; and WHEREAS, WRCOG member agencies have the common power to implement and administer contractual assessment programs pursuant to AB 811 (the "Program") to finance installation of distributed generation renewable energy sources or energy efficiency improvements within their jurisdictions; and WHEREAS, WRCOG and Member Agency desire to enter into this Agreement in order to authorize WRCOG to implement and administer the Program on behalf of Member Agency; and WHEREAS, the Executive Committee has authorized Member Agency to enter into this Agreement. NOW, THEREFORE, the Parties hereby understand and agree as follows: RVPUB\ZKATOR\762610.1 1 AGREEMENT Section I: Establishing the Program WRCOG will undertake proceedings pursuant to AB 811 to establish the Program to make contractual assessment financing available to eligible property owners within the jurisdictional boundary of Member Agency. Section 2: Establishing Eligible Improvements WRCOG shall identify the kinds of public works, distributed generation renewable energy sources, or energy efficiency improvements that may be financed ("Eligible Improvements") under the Program. Section 3: Boundary of Program WRCOG, in coordination with Member Agency, shall describe the boundaries of the area within which contractual assessments under the Program may be entered into, which may include the entire jurisdictional area of Member Agency or a lesser portion thereof. Section 4: Financing the Installation of Eligible Improvements WRCOG shall develop and implement a plan for the financing of the purchase and installation of the Eligible Improvements under the Program. Section 5: Ongoing Administration WRCOG shall be responsible for the ongoing administration of the Program, including but not limited to producing education plans to raise public awareness of the Program, soliciting, reviewing and approving applications from residential and commercial property owners participating in the Program, establishing contracts for residential and commercial property owners participating in Program, establishing and collecting assessments due under the Program, and providing reports as required by Streets & Highways Code sections 5898.20(b) and 5898.22. The program will be administered in accordance with WRCOG JPA. Section 6: Phased Implementation The Parties recognize and agree that implementation of the Program as a whole can and may be phased as other WRCOG member agencies execute similar Implementation Agreements. The Member Agency entering into this Agreement will obtain the benefits of and incur the obligations imposed by this Agreement in its jurisdictional area, irrespective of whether other WRCOG member agencies enter into similar Implementation Agreements. Section 7: Term The term of this Agreement shall be for twenty (20) years unless modified or extended pursuant to this Agreement. Section 8: Termination Upon ninety (90) days written notice, either Party may terminate this Agreement. Termination shall not relieve the Party of its proportionate share of any debts or other liabilities incurred under this Agreement prior to the effective date of the Party's notice of termination. Section 9: Environmental Review WRCOG shall be the lead agency under the California Environmental Quality Act for any environmental review that may required in implementing or administering the Program under this Agreement. Section 10: Cooperative Effort Member Agency shall cooperate with WRCOG by providing information and other assistance in order for WRCOG to meet its obligations hereunder. Member Agency recognizes that one of its responsibilities related to the Program will include any permitting or inspection requirements as established by the Member Agency. Section 11: Miscellaneous Provisions 11.1 Notice. Any and all communications and/or notices in connection with this Agreement shall be either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows: WRCOG: Western Riverside Council of Governments 4080 Lemon Street, 3rd Floor. MS1032 Riverside, CA 92501-3609 Att: Executive Director MEMBER AGENCY: City of San Jacinto 595 S. San Jacinto Avenue San Jacinto, CA 92583 11.2 Entire Agreement. This Agreement, together with the JPA and WRCOG By-laws, constitutes the entire agreement among the Parties. This Agreement supersedes any and all other agreements, either oral or in writing, among the Parties with respect to the subject matter hereof and contains all of the covenants and agreements among them with respect to said matters, and each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of the other Party that is not embodied herein. 11.3 Successors and Assigns. This Agreement and each of its covenants and conditions shall be binding on and shall inure to the benefit of the Parties and their respective successors and assigns. A Party may only assign or transfer its rights and obligations under this Agreement with prior written approval of the other Party, which approval shall not be unreasonably withheld. 11.4 Attorney's Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party to the litigation shall bear its own attorney's fees and costs. 11.5 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, as applicable. 11.6 No Third Party Beneficiaries. This Agreement shall not create any right or interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not a Party to this Agreement to maintain a suit for personal injuries or property damages under the provisions of this Agreement. The duties, obligations, and responsibilities of the Parties to this Agreement with respect to third party beneficiaries shall remain as imposed under existing state and federal law. 11.7 Severability. In the event one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this Agreement and the remaining parts of this Agreement shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this Agreement. 11.8 Headings. The paragraph headings used in this Agreement are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 11.9 Amendment. This Agreement may be modified or amended by the Parties at any time. Such modifications or amendments must be mutually agreed upon and executed in writing by both Parties. Verbal modifications or amendments to this Agreement shall be of no effect. IN WITNESS WHEREOF, THE PARTIES HERETO have executed this Agreement to be in effect as of the date last signed below. By: Date: Executive Committee Chair Western Riverside Council of Governments By: Date: Mayor, Dale Stubblefield By: Date: Legal Counsel Member urisdictions Agencies aunty of Rivers id City of Banning City of Beaumont City of Calimesa ity of Canyon Lak City of Corona City of Hemet ity of Lake Elsinore City of Menifee ity of Moreno Valley City of Murrieta City of Norco City of Perris City of Riverside ity of San Jacinto City of Temecula of Wildomar tern Munic estern Rivers' uncil of vernments 80 Lemon Street, d Floor verside, CA 92501 one: (951) 965-79 x: (951) 787-7991 FINANCING ENERGY EFFICIENCY AND WATER CONSERVATION RETROFIT IMPROVEMENTS Frequently Asked Questions What is this Program? The goal of the Program is to offer low interest loans to approximately 13,500 homes and businesses in Western Riverside County for the purchase and installation of energy efficiency and water conservation improvements. Loans to property owners would be repaid over a period of years through voluntary annual assessments. Why will a loan Program work? Many homeowners and businesses desire to retrofit older buildings in order to achieve energy efficiencies and lower related energy costs. Unfortunately, the up-front, one-time costs for installing these kinds of improvements are often an impediment to energy efficient retrofitting. This loan Program will remove this funding impediment, and allow for thousands of properties in one of the fastest growing areas in the United States to reduce energy use, improve home values, and create jobs. Who will implement the Program? The Program will be administered by the Western Riverside Council of Governments (WRCOG). WRCOG is a joint powers authority consisting of each of the 16 cities in Western Riverside County, the County of Riverside, and the Eastern Municipal Water District and Western Riverside Water District. A regional approach to program implementation through WRCOG will provide for a consistent approach throughout Western Riverside County and achieve significant economies of scale as they relate to costs for staffing. As part of its responsibilities, WRCOG will develop the Program implementation / administration parameters, conduct energy and water surveys, develop Program outreach materials and campaign, develop and conduct training workshops, initiate loans and develop tracking and reporting mechanisms. How will the Program work? This is a voluntary program. Willing property owners will apply for Program coverage, and describe the energy and/or water saving improvement(s) desired to be purchased and installed. If approved, WRCOG and the property owner will enter into an assessment contract, through which WRCOG will pay the up-front costs of the energy efficient improvements. WRCOG will place an assessment lien on the property, and the property owner will repay WRCOG for the improvements as part of an annual assessment on the property tax bill over a specified period of time. What kinds of improvements qualify? WRCOG will work with member jurisdictions, water districts, and utilities to develop a listing of eligible projects that the loans will cover. Generally, these are improvements that would be considered as permanent fixtures to a property. These include, but are not limited to solar panels, heating and air conditioning systems, pool filtration equipment, windows and doors, and other investments that will significantly reduce energy use and, in many instances, pay for themselves over time through reduced utility bills. Who qualifies to participate? Property owners may be individuals, associations, business entities, cooperatives, and virtually any owner paying real property taxes. Any residential, commercial, or industrial property owner in participating jurisdictions can participate in the program. In order to qualify, the property owner must: 1) Have clear title to the property; 2) Be current on property taxes; 3) Be current on mortgage payments; and 4) Request improvements that are reasonable both in cost, and in relation to the property value. Properties built prior to 2000 would most likely receive a larger return on energy efficient retrofit investments. In Western Riverside County, there are approximately 189,000 residential properties and 7,000 commercial properties that were constructed prior to 2000. Member urisdictions Agencies ounty of Riversid City of Banning City of Beaumont City of Calimesa ity of Canyon Lak City of Corona City of Hemet ity of Lake Elsino City of Men ifee ity of Moreno Vail City of Murrieta City of Norco City of Perris City of Riverside City of San Jacint• City of Temecula City of Wildomar Eastern Municipal Water District Western Municipal Water District estem Riverside ouncil of overnments 80 Lemon Street, d Floor iverside, CA 92501 one: (951) 955-79 x: (951) 787-7991 FINANCING ENERGY EFFICIENCY AND WATER CONSERVATION RETROFIT IMPROVEMENTS Frequently Asked Questions What are the economic impacts? Using methodological information from the Obama Administration, it is estimated that implementing a $300 million Program would create or retain an estimated 3,200 jobs in Western Riverside County. What are the benefits to the Western Riverside County? In addition to significant jobs creation, the Program will also: • Reduce/delay the need for costly infrastructure investments related to additional energy generation and transmission facilities; • Reduce utility bills for thousands of property owners; • Improve home and property values by upgrading buildings with energy efficient improvements; *Position Western Riverside County as a leader in improving air quality and reducing greenhouse gas emissions via a coordinated, large-scale effort supported by jurisdictions in one of the fastest-growing regions in the United States. What are the Program benefits to property owners? *Provides no-money-down means of financing energy efficiency and conservation improvements; Provides a fixed-rate financing over a number of years; *Provides financing without requiring a property appraisal; • Provides an easy-to-understand and straightforward financing process; • Provides residents and businesses access to financing that might not readily be available through traditional means, such as home equity loans; *Removes the initial up-front costs from being a detriment to energy efficient retrofitting. What would an average loan amount be? WRCOG estimates that average residential property loan will be $17,500, and average commercial property loan will be approximately $30,000. What happens if a participant sells their property? The tax obligation will remain an obligation of the property when it is sold. If a participant sells a property prior to the end of the contract tax period, the new owner will assume the obligation as part of the annual tax obligation on that property. The energy systems are part of the property and ownership of the energy system will transfer to the new owner at the close of the real estate sale. What are the loan terms? The loan terms can run 5, 10, 15, and 20 years. The terms will be based on the type and cost of improvements. What is the interest rate? The interest rate for the Program will be determined once funding for the Program has been secured. Does the Property still qualify for rebates or tax credits? Yes, rebates or other incentives that are received at the time of project completion or shortly thereafter (by either the property owner or the contractor) so as to reduce the costs of a project at the outset will not be included in the financing amount. Tax credits that may eventually be available to a property owner and would vary based on applicable tax brackets are not taken into account in determining the financing amount. Member urisidictons Agencies ounty of Riverside City of Banning City of Beaumont City of Calimesa ity of Canyon Lake City of Corona City of Hemet ity of Lake Elsinore City of Menifee ity of Moreno Valley City of Murrieta City of Norco City of Perris City of Riverside ity of San Jacinto City of Temecula *, of Wildomar tern Municipal ater District Western Riverside County's Proposed Regional Energy Efficiency and Frequently Asked Questions How will the Program be funded? WRCOG is seeking a $300 million loan from the federal government to spearhead the Program. The loan would be fully repaid. What if the Special Tax or Assessment is not paid by the property owner? The Special Tax or Assessments, like other property taxes, will be secured by a lien on the property, which ranks senior to the first mortgage. What about foreclosures? As WRCOG secures funding for the Program, 10% of these funds will be set aside in a reserve account that will be used to assist properties that fall behind on their tax bill for 6 to 12 months. What happens if the mortgage company pays the property taxes? If the property owner has their mortgage company makes their tax payments, the property owner should advise the lender of the assessment on the property, so that the proper amount can be set aside for both the taxes and the assessment. How do jurisdictions participate? A jurisdiction that wishes to participate in the program must notify WRCOG staff of its intent and approve a resolution and agreement authorizing WRCOG to implement the Program on their behalf. A copy of the draft agreement and resolution will be provided by WRCOG. What level of involvement is required from the jurisdiction? After providing WRCOG with the appropriate notification to participate in the program, the only role of cities and counties will be to process the permits they require for the installation of the energy efficient equipment. stern Riverside uncil of vemments 80 Lemon Street, Floor verside, CA 92501 one: (961) 966-798 x: (951) 787-7991 For more information, please contact Barbara Spoonhour, WRCOG Program Manager at (951) 955-8313 or by e-mail at spoonhour@wrcog.cog.caus. AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk C- Enclosure: Staff Report for meeting of 0 7 [CC or RDA] (date) 12e4u f fag_ ,M4 )17019-7 1 8Vt -#146 -F,--__ (name — brief description) tAlv0 CA-Pi7Lcrt— /W4,1'104 e'vle-47 P4/41"/ Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) 1"-----City Departments Item Attachments include (this needs to match the attachment list in the Staff Report: A. SP/ grux7 -rt - B. /iiWGiCt C. Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting /11 c DATE: /0 - 2-1 -0 1 71)/11 [Name or Initials] [Title] S:\City Clerk\CC RPT 06\AGENDA Transmittal Form.doc Page 1 of 3 AGENDA ITEM 3&.5 November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Barry McClellan, City Manager SUBJECT: Request for Appropriation of $18,840 from Water Fund for Share of Ground Water Management (GWMP) Plan Facilitation RECOMMENDATION: Staff recommends that the City Council, by motion, approve the appropriation of $18,840 from the Water Fund for One-Quarter Share of Ground Water Manage- ment Plan Facilitation. SUMMARY: The City of San Jacinto has been collaborating with the City of Hemet, Eastern Municipal Water District, and Lake Hemet Municipal Water District for several years to develop and possibly become members of a Ground Water Management Plan for the San Jacinto Valley's aquifers. Until earlier this year, the State of California had been paying for a facilitator to coordinate meetings and outcomes with the four agencies at both the policy and the management levels. That financial support from the state has ended. On February 19, 2009, the City Council agreed to share in the cost of the facilitator ($1570 per month) through June, 2009, and appropriated $7,850 for 5 months. Staff indicated that if the GWMP adoption went beyond June 30, we would return for a further appropriation in the FY 2009-10 fiscal year. We were not invoiced by EMWD for the $7850, and we have now been invoiced for 12 months of our share, which will take us through January, 2010. Because the $7850 was not expended last fiscal year that amount remained in the Water Fund, and staff now requests an appropriation for the full 12 months. BACKGROUND: As a result of the Soboba Tribe's past litigation regarding water matters, the City of San Jacinto joined in the development of a Ground Water Management Plan (GWMP) for our valley in partnership with City of Hemet, Lake Hemet Municipal Water District and Eastern Municipal Water District. The respective boards and councils of these four agencies formed a Policy Committee, which included two elected representatives from each agency and representatives from the agricultural community. The Policy Committee formed an advisory committee comprised of Consultants, Attorneys and Managers (CAM) from each agency. The CAM meets monthly to deal with the assigned policy issues and to develop a GWMP that all agencies can adopt and of which they can be a part. For at least the past seven years, the CAM has been meeting monthly to negotiate the intricacies of such a plan in terms of the stipulated judgment and to provide for the protection of the valley's aquifers and our future generations. The city was not a party in the litigation but has a stake in the groundwater basin. Due to the very complex issues and competing interests between the agencies, the State Department of Water Resources funded a facilitator to coordinate these committees and also provided an engineering consultant at a cost of over $100,000 to complete a study of the basin and to provide other technical assistance from time to time. This was all paid for by the state from water bond money. DISCUSSION: The facilitator has been vital in keeping the four groups working together. The facilitator provides coordination between the four agencies, tracks all responsibilities and follow up items from each agency, and also provides the support work of agendas and minutes. Also, the facilitator is an expert in California water law and issues. The CAM meetings are typically three to four hours long and at this point, the CAM believes it is less than a year from completing their work and presenting it to the Policy Committee and ultimately to the four agencies' councils and boards for adoption. There have only needed to be two Policy Committee meetings in the past two years, but there have been two more Policy Committee meetings in the last six months. The total cost for the facilitation service is $6,280 per month, or $1,570 per month for each of the four agencies. We would not be at this point without the facilitator, and while so much has been accomplished, the CAM believes the process will greatly slow without a facilitator. ALTERNATIVES: 1. Approve the appropriation of $18,840 from the Water Fund 2. Deny the request. FISCAL IMPACT: The approval of this appropriation will reduce the Water Fund by $18,840. The balance in the fund is adequate to handle this. Page 2 of 3 ATTACHMENTS: 1. Staff report dated February 19, 2009. 2. Invoice for City's pro rata share for 12 months. Page 3 of 3 AGENDA ITEM February 19, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Barry McClellan, City Manager SUBJECT: Request for Appropriation of $7,850 from Water Fund for Share of Ground Water Management Plan Facilitation RECOMMENDATION: Staff recommends that the City Council, by motion, approve the appropriation of $7,850 from the Water Fund for One-Quarter Share of Ground Water Manage- ment Plan Facilitation for Remainder of Fiscal Year BACKGROUND: As a result of the Soboba Tribe's past litigation regarding water matters, the City of San Jacinto joined in the development of a Ground Water Management Plan (GWMP) for our valley in partnership with City of Hemet, Lake Hemet Municipal Water District and Eastern Municipal Water District. The respective boards and councils of these four agencies formed a Policy Committee, which included two elected representatives from each agency and representatives from the agricultural community. The Policy Committee formed an advisory committee comprised of Consultants, Attorneys and Managers (CAM) from each agency. The CAM meets monthly to deal with the assigned policy issues and to develop a GWMP that all agencies can adopt and of which they can be a part. For at least the past seven years, the CAM has been meeting monthly to negotiate the intricacies of such a plan in terms of the stipulated judgment and to provide for the protection of the valley's aquifers and our future generations. The city was not a party in the litigation but has a stake in the groundwater basin. Due to the very complex issues and competing interests between the agencies, the State Department of Water Resources funded a facilitator to coordinate these committees and also provided an engineering consultant at a cost of over $100,000 to complete a study of the basin and to provide other technical assistance from time to time. This was all paid for by the state from water bond money. Approvals City Manager: Finance Director: Page 1 of 2 DISCUSSION: Until approximately two weeks ago, the state had contracted with California State University Sacramento, Center for Collaborative Policy (CCP), to provide the facilitation. Shortly following the state's Bond Advisory Committee's decision to stop funding for future bonds, DWR was compelled to issue a "stop work notice" to the Center for Collaborative Policy for these facilitation services. It is not known if or when the state may again fund this service. The facilitator has been critical in keeping the four groups working together. The facilitator provides coordination between the four agencies, tracks all responsibilities and follow up items from each agency, and also provides the support work of agendas and minutes. Also, the facilitator is an expert in California water law and issues. The CAM meetings are typically three to four hours long and at this point, the CAM believes it is less than a year from completing their work and presenting it to the Policy Committee and ultimately to the four agencies' councils and boards for adoption. There have only needed to be two Policy Committee meetings in the past two years, but at the CAM meeting of February 9, the group determined that time was appropriate to have a Policy Committee meeting in the next month or two. The total cost for the facilitation service is $6,280 per month, or $1,570 per month for each of the four agencies. Because it is not known if or when the state may have bond funding and because local government budgets on a fiscal year basis, staff recommends that the city council appropriate $7,850 for the remaining five months of this fiscal year. We would not be at this point without the facilitator, and while so much has been accomplished, the CAM believes the process will greatly slow without a facilitator. ALTERNATIVES: 1. Approve the appropriation of $7,850 from the Water Fund 2. Direct staff to attempt to negotiate an alternative solution 3. Deny the request FISCAL IMPACT: The approval of this appropriation will reduce the Water Fund by $7,850. The balance in the fund is adequate to handle this. If the state does not pick up the payments in the new fiscal year, it will be necessary consider appropriation of more funds to complete the GWMP adoption through the first part of fiscal 2009- 10. This could be for up to an additional four to six months. Page 2 of 2 Cityio Date: P.O. #: Jacinto Exp nditure Approv Vendo #: ( Projec #: 16 Total 18,840.00 $ : Acct ti $: cP c' 1>'\ AUG 3 1 2009 EASTERN MUNICIPAL WATER DISTRICT POST OFFICE BOX 8300 PERRIS, CALIFORNIA 92572-8300 TELEPHONE (951) 928-3777 EXT 4225 Invoice Number: MISC-0826F Date: August 26, 2009 Bill To: CITY OF SAN JACINTO BARRY MC CLELLAN PO BOX 488 SAN JAC INTO, CA 92581 Account Number Terms Project 4100-24609-412651-1 UPON RECEIPT SEE BELOW Description Amount HEMET/SAN JACINTO MANAGEMENT AREA -CAM AGREEMENT 18,840.00 LETTER OF UNDERSTANDING 2009-2010 FACILITATION SERVICES-CAM AGREEMENT Acct#1 :0 6o —geco—Lfsn1 3 4-c INVOICES ARE SUBJECT TO A 1.5% PER MONTH LATE CHARGE FOR BALANCES OVER THIRTY (30) DAYS PAST DUE. REMIT TO: EASTERN MUNICIPAL WATER DISTRICT ATTENTION: FINANCE DEPARTMENT P.O. BOX 8300 PERRIS, CA 92572-8300 FINANCE SEP 2 1 2009 (date) DATE: [Name or Initials], [Title] 51. AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Enclosure: Staff Report for ( meeting of [CC or RDA] A1e495wLe 81_ S (name — bri scription) Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) i-'City Departments Item Attachments include (this needs to match the attachment list in the Staff Report: A.72 B. C. Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting S:\City Clerk\Transmittal Form for Staff Report.doc Page 1 of 1 AGENDA ITEM 5H November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Tim HuIts, Assistant City Manager SUBJECT: Valley Health System Measure P RECOMMENDATION: Staff recommends that the City Council review the material in question and determine whether to support Measure P. In the event the Council determines to support Measure P, Staff recommends that the City Council adopt the attached Resolution in support of Measure P. BACKGROUND: Valley Health System has been in Chapter 9 bankruptcy since 2007 and the Valley Health System Board of Directors has determined that Valley Health System should sell its assets to Physicians for Healthy Hospitals. Measure P, which authorizes the sale of the Valley Health System assets, including Hemet and Menifee hospitals, to Physicians for Healthy Hospitals will be considered on a special election on December 15, 2009. DISCUSSION: Valley Health System Board of Directors has accepted a $160 million proposal from Physicians for Healthy Hospitals to purchase the hospitals and other assets of Valley Health System. Physicians for Healthy Hospitals is a group of more than 130 local doctors who practice in the Valley Health System. The sale would satisfy the district's debt obligation of at least $44.5 million to bond holders and $21 million to unsecured bankruptcy creditors. In addition, the sale would prevent bankruptcy and help to protect nearly 3,000 local healthcare related jobs. It will also ensure that healthcare and emergency services continue to be available in the region. In the event the two hospitals had to close, many local patients would have to travel in excess of 30 miles to obtain emergency medical services. FISCAL IMPACT: None ATTACHMENTS: Resolution STATE OF CALIFORNIA) RESOLUTION NO. COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, IN SUPPORT OF PHYSICIANS FOR HEALTHY HOSPITALS SPECIAL DECEMBER 15, 2009, ELECTION ON MEASURE P WHEREAS, the primary roles of local elected officials is to protect the health, safety and welfare of their residents, and to promote and sustain economic activity; and WHEREAS, the City of San Jacinto recognizes the important contributions of the Hemet Valley and Menifee Valley medical centers to the regional emergency response and public healthcare system in a region that has half the number of hospital beds per 1,000 residents as the state average; and WHEREAS, Valley Health System, the public health care district that operates the Hemet and Menifee hospitals, is the region's largest employer, responsible for 1,400 direct healthcare jobs and 1,500 indirect jobs, representing an annual economic activity of $834 million; and WHEREAS, the Board of Directors of Valley Health System has accepted a $160 million proposal from Physicians for Healthy Hospitals, a group of more than 130 local doctors who practice in the Valley Health System that has come together to purchase the hospitals and other assets of Valley Health System; and WHEREAS, Valley Health System has been in Chapter 9 bankruptcy since 2007 and the Valley Health System Board of Directors has determined that Valley Health System should sell its assets to Physicians for Healthy Hospitals to preserve hospital and emergency room services and to satisfy the district's debt obligation of at least $44.5 million to bond holders and $21 million to unsecured bankruptcy creditors; and WHEREAS, the offer from Physicians for Healthy Hospitals provides the district with more than the appraised value of the hospitals and Valley Health System assets and assumes tens of millions of dollars in debt without any taxpayer debt or liability; and WHEREAS, Physicians for Healthy Hospitals has entered an association agreement with St. Bernardine/Catholic Healthcare West to expand local access to nationally recognized healthcare programs; and WHEREAS, Physicians for Healthy Hospitals, whose physician members are key stakeholders in the local healthcare delivery system, has committed to maintaining local acute-care and trauma services and to preserving hospital and healthcare jobs; and WHEREAS, the sale of the Hemet and Menifee hospitals would preserve $834 million in economic activity, nearly 3,000 local jobs and keep local hospitals and emergency rooms open to patients who would otherwise face trips of 30 miles or more to obtain emergency medical care; and WHEREAS, voters within Valley Health System's 886-square mile service area have been asked to approve Measure P, which authorizes the sale of the Valley Health System assets, including Hemet and Menifee hospitals, to Physicians for Healthy Hospitals in a special ballot election on December 15, 2009. NOW, THEREFORE, BE IT RESOLVED determined and ordered by the City Council of the City of San Jacinto: 1. That the City Council supports Measure P and the sale of Valley Health System assets to Physicians for Healthy Hospitals; and 2. That the City Council's support of Measure P is in the best interest of the regional healthcare system and the local economy. PASSED, APPROVED and ADOPTED, this 5th day of November 2009, by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto by Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk APPROVED AS TO FORM: BEST, BEST & KRIEGER LLP Jeffrey S. Ballinger, City Attorney 5 2, AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Enclosure: Staff Report for City Council. Meeting of November 5, 2009. Police Activities League (P.A.L.) Program Presentation Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) X City Departments Item Attachments include: Lettflç of anatio om Bonney Archifeets Up . es gn f additiqna ex ansion ff Rçfort D6taq July 12O08 Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting Chief Bill Tyler DATE: October 27, 2009 Chief Bill Tyler S:\City Clerk\CC RPT 09\November 2009\11-05-09 Transmittal Form PAL Presentation 2009.doc AGENDA ITEM 5.2 November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Bill Tyler, Chief of Police SUBJECT: Update on the Police Activities League (P.A.L.) DETAILS: Chief Tyler will introduce Valerie Florez and she will provide a brief presentation and update on the San Jacinto P.A.L. Program. The mission of San Jacinto P.A.L. is to build a bond between cops and kids through positive recreational, cultural, and social activities. P.A.L. is a creative form of proactive policing. The program is designed to develop leadership skills, teamwork, positive self image, discipline, and mutual trust between children, law enforcement, and other community members. We believe that in order to strengthen a community we must invest in our greatest resource — our children! ALTERNATIVES: None FISCAL IMPACT: None ATTACHMENTS: None 5 Z., 3 AGENDA - TRANSMITTAL FORM TO: Barry McClellan, City Clerk Enclosure: Staff Report for City Council. Meeting of November 5, 2009. Reducing number of council meetings -I Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) X City Departments Item Attachments include: Other: Please provide a fully executed copy of documents to: _ Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting Barry McClellan, City Clerk DATE: October 27, 2009 Rick Miller AGENDA ITEM 5•3 November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Barry McClellan, City Clerk Via Rick Miller, Deputy City Clerk SUBJECT: City Council Meetings Being Held Once per Month RECOMMENDATION: Staff recommends that the City Council discuss the merits of holding one city council meeting per month during this economic downturn and determine which Thursday of the month to meet, if approved. DISCUSSION: In light of the current economy and reduced activity, the idea of reducing the bi-monthly City Council meetings to one time per month has become a viable option. If there becomes an item that is of urgent nature and needs to be addressed prior to the next meeting, the Mayor can call for a Special Meeting. While the fiscal impact would be relatively small, this would help balance the workload that has increased since staff reductions last spring and going to a four-day work week. ALTERNATIVES: 1) Recommend reducing the number of city council meetings from two to one per month and whether that meeting be held on the first Thursday of the month. 2) Recommend reducing the number of city council meetings from two to one per month and whether that meeting be held on the third Thursday of the month. 3) Do not change the current schedule of two City Council meetings per month. FISCAL IMPACT: The fiscal impact would be small as savings would result from preparing and posting the agendas, but most members of staff who attend are exempt from overtime pay. Page 1 of 1 AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Enclosure: Staff Report for City Council meeting of November 5, 2009 Review of TUMF Revenue and Programming in San Jacinto (name — brief description) Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) _X_ City Departments Item _X_ Attachments include (this needs to match the attachment list in the Staff Report: A. Table showing TUMF revenue by municipality B. C. Other: Please provide a fully executed copy of documents to: ____ Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting: HABIB DATE: 10/27/09 Eric Skaugset, Engineer [Name or Initials], [Title] CADocuments and Settingsamiller\Local Settings\Temporary Internet Files\0LK98\Transmittal Form TUMF receive and file SJ Staff Report 11-5-09.doc AGENDA ITEM 5.1-1 November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Habib Motlagh, City Engineer SUBJECT: Review of TUMF Revenue and Project Funding RECOMMENDATION: This item is to receive and file only; no action is requested. BACKGROUND: The City of San Jacinto joined with other municipalities throughout Western Riverside County in implementing the Transportation Uniform Mitigation Fee (TUMF) program in 2003. Since that time over $500 million has been collected county-wide to put toward the improvement of the critical arterial streets that get residents across town and across the region. With this information in mind, the City Engineer's office felt it that it was a good time to take a look back on both the fees generated as well as the funds that have been returned to San Jacinto through this program. DISCUSSION: Attached to this report please find a spreadsheet prepared by WRCOG showing the revenue that has been generated over the life of the TUMF program, broken down by municipality. These figures are through the end of August. The City of San Jacinto has generated $22.6 million in fee revenue during that time. This places San Jacinto fourth amongst cities for total revenue generated, trailing only Riverside, Moreno Valley, and Murrieta. Moreover, within the Hemet/SJ zone of the TUMF program, the City of San Jacinto has collected more in TUMF fees than the other two agencies (Hemet and Riverside County) combined. Approvals City Manager: ( Finance Director: Page 1 of 2 Of course, a program such as TUMF is only as valuable as the return that is seen. To that end, the City Engineer's office has reviewed the various projects that are funded by TUMF. The list of projects and their TUMF funding is as follows: CIP # Project Total TUMF Funding Programmed Total TUMF Funding Obligated Amount spent or under contract 05-123 Ramona Ex Widening (Warren to Sand.) $4,100,000 $4,100,000 $4,100,000 05-124 Ramona Ex Gap Closure $5,900,000 $1,400,000 $195,000 06-145 Sanderson Avenue Widening $7,720,800 $7,720,800 $6,200,000 (±) 06-146 Esplanade Avenue Widening $4,894,500 $194,500 $44,000 08-003 Sanderson & Ramona Ex Intersection $1,767,000 $1,767,000 $1,767,000 08-010 Ramona Ex Widening (Sand. to Main) $2,500,000 $250,000 $42,000 TOTALS $26,882,300 $15,432,000 $12,348,000 As can be seen, the City has done well in getting quite a few projects funded, and there is over $26 million in funding programmed to be spent in San Jacinto, with over $12 million either spent or currently under contract for construction. Furthermore, the total amount programmed for projects in San Jacinto is actually greater than the amount which has been collected by the City. The City Engineer's office has aggressively pursued TUMF funding as opportunities have arisen both from RCTC and WRCOG, and we are pleased with the way this program has flourished. Furthermore, with the City's demonstrated ability to deliver projects (Ramona Expressway Widening, Ramona & Sanderson Intersection, Sanderson Avenue Widening) we are well positioned to compete for future funding through this program. ALTERNATIVES: No alternatives are necessary, receive and file only. FISCAL IMPACT: No fiscal impact associated with this item ATTACHMENTS: • TUMF Revenue by Jurisdiction, provided by WRCOG Page 2 of 2 TUMF Program Remittance Report Actuate for FY 200912010 'PlscalYear 2008 2909 Fiscal Year Total from Jurisdiction August September doer mnber Deco or January Februar March April Inception Banning Beaumont Callmesa Canyon Lake Lake Elsinore March JP A Menifoo Moreno Valley Pilurrieta Norco Perris Riverside San Jacinto Temecula Witdomar County Central County Hemet/S.J. County Northwest County Pass County Southwest Total 51.,)1.6.027` $45' .548 5078.7" 7 44 481 $6'.672 $5' 474,183 53 734.558 50, ,:n3.577 39" 147,11'3 5'5,7253'4 $. V,459.45.9 $1":'. • 43,004 .741i.108 $107 44%433 507,540,410.40 50 SO $464,548 $84.718 $72,037 SO SO 593.438 $O 64.70 54,416 $592 $9.817. 5303,511 SO $132,540 1,687,040.00 SO $19,624 $339 $56,872 $13.185 $O 5'4.731 $10.336 575,5E14 $47,,953 SO $9,812 $343,041 59,912 5'24,044 1,365,050.55 54,586,710 $4,059,820 $45' ,548 $578,717 $14,868,434 $10,302,265 5'3,207,996 53.464,619 $527,220 551,6' 7,773 $25,347,979 $3,234.556 $16,608,537 $52,500,913 522,616,395 019,913,082 $466,415 :35,517,873 57.479,113 5112,8,9,556 52,749,970 5107,705,87 - $ 3,006,935.09 510,705,405.41 5°3 O' ..527 5172,447 SO SO SO Corona 514,425,577 529,933 SO Hornet $98,120 $217.725 573.933 $313,045 3336 $454.'.148 0' 43,083 $85,973 $' 4,731 5' 73 ,774 $75,584 S' 84.768 $479,369 $592 5'9.674 $878 $07 52,517 5 510,705,400 stJeeti995ITUMENAgenda1Yr 2009\ PWC11008091Filevenue 9.30.09 \Rarrinance 09-10 DATE: [Name or Initials], [Title] AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Enclosure: Staff Report for meeting of [CC or RDA] (name — brief description) Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) City Departments Item Attachments include (this needs to match the attachment list in the Staff Report: A. B. C. Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting S:\City Clerk\Transmittal Form for Staff Report.doc The City will receive $300.00/month for a one-year lease. Page 1 of 1 AGENDA ITEM G-5. November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Tim Hults, Assistant City Manager - 7 4‘‘‘'‘. SUBJECT: Lease Extension — San Jacinto Chamber of Commerce for the modular unit located at 495 S. Sheriff Street RECOMMENDATION: Staff recommends that the City Council, by motion, approve a one-year extension, with monthly lease payments in the amount of $300.00, with the San Jacinto Chamber of Commerce for the use of the modular unit located at 495 S. Sheriff Street; and authorize the City Manager to execute the lease agreement extension. BACKGROUND: The San Jacinto Chamber of Commerce was established in early 2008 and has over 100 members. The Chamber has been leasing the modular for about a year and the lease expires on December 31, 2009. The Chamber is seeking to extend the lease and is also requesting to expand the area of the modular subject to the lease. DISCUSSION: The existing lease area of modular is the entry foyer, the kitchen, restroom and one office. The chamber is responsible for all utilities and maintenance. As indicated above, the Chamber is seeking to expand the area of the lease. The requested expansion would be the entire building. However, the City continues to need a portion of the building for storage. The temporary file storage includes those files that are to be imaged upon completion of the software and hardware installation under our contract with SIRE Technologies. Therefore, Staff would recommend allowing for a partial expansion of the lease and proposes the lease area include the large conference room on the north end of the building. ALTERNATIVES: 1. Approve the one year extension as presented. 2. Agree to a different lease and terms than has been presented. 3. Deny the lease. FISCAL IMPACT: AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Enclosure: Staff Report for meeting of /I'''. 5"-°45' r [CC or RDA] (date) /Yeast a,/ I A 7:42( sEcux/77z4 7744) ne0 G/S4r-n.. (name - brief description) Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) "City Departments Item '7-Attachments include (this needs to match the attachment list in the Staff Report: tF — 4.-/JTC`x7 0_1 RA e Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting Zn. ev--61-4.4•J DATE: /0747 e or Initials], [Title] S:\City Clerk\CC RPT 06\AGENDA Transmittal Form.doc AGENDA ITEM 5- November 5, 2009 TO: FROM: SUBJECT: Honorable Mayor and Members of the City Council Barry McClellan, City Manager Proposition 1A Securitization Program RECOMMENDATION Staff recommends that the City Council adopt: A RESOLUTION APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE AND SALE AGREEMENT AND RELATED DOCUMENTS WITH RESPECT TO THE SALE OF THE SELLER'S PROPOSITION 1A RECEIVABLE FROM THE STATE; AND DIRECTING AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH. BACKGROUND Proposition 1A Suspension: Proposition 1A was passed by California voters in 2004 to ensure local property tax and sales tax revenues remain with local government, thereby safeguarding funding for public safety, health, libraries, parks, and other local services. Provisions can only be suspended if the Governor declares a fiscal necessity and two-thirds of the Legislature concurs. The emergency suspension of Proposition 1A was passed by the Legislature and signed by the Governor as ABX4 14 and ABX4 15 as part of the 2009-10 budget package on July 28, 2009. Under the provision, the State will borrow 8% of the amount of property tax revenue apportioned to cities, counties and special districts. The state will be required to repay those obligations plus interest by June 30, 2013. The Governor has signed a clean-up bill, 5B67, which will provide for a few critical changes to the enacted legislation, including but not limited to providing for: financing to occur in November; county auditor certification of amount of Prop 1A receivable; tax-exempt structure; California Communities as the only issuer; more flexibility on bond structure (interest payments, state payment date and redemption features); sales among local agencies; and revision to the hardship mechanism. Approvals City Manager: Finance Director 1 DISCUSSION Proposition 1A Securitization Program: Authorized under ABX4 14 and ABX4 15, the Proposition 1A Securitization Program was instituted by California Communities to enable Local Agencies to sell their respective Proposition 1A Receivables to California Communities. Under the Securitization Program, California Communities will simultaneously purchase the Proposition 1A Receivables, issue bonds ("Prop 1A Bonds") and provide each local agency with the cash proceeds in two equal installments, on January 15, 2010 and May 3, 2010 (to coincide with the dates that the State will be shifting property tax from local agencies). The purchase price paid to the local agencies will equal 100% of the amount of the property tax reduction. All transaction costs of issuance and interest will be paid by the State of California. Participating local agencies will have no obligation on the bonds and no credit exposure to the State. If the City sells its Proposition 1A Receivable under the Proposition 1A Securitization Program, California Communities will pledge the City's Proposition 1A Receivable to secure the repayment of a corresponding amount of the Prop 1A Bonds. The City's sale of its Proposition 1A Receivable will be irrevocable. Bondholders will have no recourse to the City if the State does not make the Proposition 1A Repayment. Proposition 1A Program Sponsor: California Statewide Communities Development Authority ("California Communities") is a joint powers authority sponsored by the California State Association of Counties and the League of California Cities. The member agencies of California Communities include approximately 230 cities and 54 counties throughout California. Benefits of Participation in the Proposition 1A Securitization Program: The benefits to the City of participation in the Proposition 1A Securitization Program includes: • Immediate cash relief — the sale of the City's Proposition 1A Receivable will provide the City with 100% of its Proposition 1A Receivable in two equal installments, on January 15, 2010 and May 3, 2010. • Mitigates impact of 8% property tax withholding in January and May — Per ABX4 14 and ABX4 15 and the proposed clean-up legislation SB 67, the State will withhold 8% of property tax receivables due to Cities, Counties, and Special Districts under Proposition 1A. The financing outlines bond proceeds to be distributed to coincide with the dates that the State will be shifting property tax from local agencies. • All costs of financing borne by the State of California. The City will not have to pay any interest cost or costs of issuance in connection with it participation. 7 • No obligation on Bonds. The City has no obligation with respect to the payment of the bonds, nor any reporting, disclosure or other compliance obligations associated with the bonds. Proceeds of the Sale of the City of San Jacinto's Proposition 1A Receivable: Upon delivery of the Proposition 1A Bonds, California Communities will make available to the City its fixed purchase price, which will equal 100% of the local agency's Proposition 1A Receivable. These funds may be used for any lawful purpose of the City and are not restricted by the program. Proposed Proposition 1A Receivables Sale Resolution: The proposed Proposition 1A Receivables Sale Resolution: (1) Authorizes the sale of the City's Proposition 1A Receivable to California Communities for 100% of its receivable; (2) Approves the form, and directs the execution and delivery, of the Purchase and Sale Agreement with California Communities and related documents; (3) Authorizes and directs any Authorized Officer to send, or to cause to be sent, an irrevocable written instruction required by statute to the State Controller notifying the State of the sale of the Proposition 1A Receivable and instructing the disbursement of the Proposition 1A Receivable to the Proposition 1A Bond Trustee; (4) Appoints certain City officers and officials as Authorized Officers for purposes of signing documents; and (5) Authorizes miscellaneous related actions and makes certain ratifications, findings and determinations required by law. Proposed Purchase and Sale Agreement: The proposed Purchase and Sale Agreement: (1) Provides for the sale of the Proposition 1A Receivable to California Communities; (2) Contains representations and warranties of the City to assure California Communities that the Proposition 1A Receivable has not been previously sold, is not encumbered, that no litigation or other actions is pending or threatened to disrupt the transaction and the this is an arm's length "true sale" of the Proposition 1A Receivable. (3) Provides mechanics for payment of the Purchase Price (4) Contains other miscellaneous provisions. 3 Proposed Purchase and Sale Agreement Exhibits: The proposed Proposition 1A Purchase and Sale Agreement Exhibits: (B1) Opinion of Counsel: This is an opinion of the City Attorney covering basic approval of the documents, litigation, and enforceability of the document against the Seller. It will be dated as of the Pricing date of the bonds (currently expected to be November 10, 2009). (B2) Bringdown Opinion: This simply "brings down" the opinions to the closing date (currently expected to be November 19, 2009). (Cl) Certificate of the Clerk of the Local Agency: A certificate of the Clerk confirming that the resolution was duly adopted and is in full force and effect. (C2) Seller Certificate: A certification of the Seller dated as of the Pricing Date confirming that the representations and warranties of the Seller are true as of the Pricing Date, confirming authority to sign, confirming due approval of the resolution and providing payment instructions. (C3) Bill of Sale and Bringdown Certificate: Certificate that brings the certifications of C2 down to the Closing Date and confirms the sale of the Proposition 1A Receivable as of the Closing Date. (D) Irrevocable Instructions to the Controller: Required in order to let the State Controller know that the Proposition 1A Receivable has been sold and directing the State to make payment of the receivable to the Trustee on behalf of the Purchaser. (E) Escrow Instruction Letter: Instructs Transaction Counsel (Orrick) to hold all documents in escrow until closing, and if closing does not occur by December 31, 2009 for any reason, to destroy all documents. ALTERNATIVES Recommended: Adopt the proposed Proposition 1A Sale Resolution and Purchase and Sale Agreement, which requires only a simple majority vote. Not Recommended: Do not adopt the proposed Proposition 1A Sale Resolution and Purchase and Sale Agreement. Record the State borrowing of property taxes as a receivable from the State of California, which will be approximately $414,000. 4 FISCAL IMPACT There is no fiscal impact to the City to participate in the Prop 1A Securitization Program as bond proceeds equal to the amount of State-borrowed property taxes will be received on appropriate dates. All transaction costs of issuance and interest will be paid by the State of California. The City will have no obligation on the bonds and no credit exposure to the State. Should the City Council choose not to participate, the City will not timely receive the approximate $414,000 in property taxes and must record the State "borrowing" as a receivable in the appropriate fund(s). ATTACHMENTS Proposition 1A Securitization Frequently Asked Questions (FAQ) Resolution Purchase and Sale Agreement, Dated as of November 1, 2009 Exhibit A Definitions Exhibit B1 Opinion of Counsel: Sale of Proposition 1A Receivable Exhibit B2 Opinion of Counsel: Sale of Proposition 1A Receivable (Bringdown Opinion) Exhibit Cl Clerk's Certificate Exhibit C2 Seller Certificate Exhibit C3 Bill of Sale and Bringdown Certificate Exhibit D Irrevocable Instructions to Controller Exhibit E Escrow Instruction Letter Certificate of the Seller RE: Components of Proposition 1A Receivables Acknowledgement of Seller's Counsel Schedule I Components of Proposition 1A Receivable Documents on File (not attached) Indenture for Bonds Instruction Letter to Local Agencies 10-21 5 I. PROPOSITION 1A SECURITIZATION FAQ 1 II. OPTIONS FOR OPTING OUT OF THE PROPOSITION 1A SECURITIZATION FAQ. 5 III. PROPOSITION 1A GENERAL FAQ 7 I PROPOSITION 1A SECURITIZATION FREQUENTLY ASKED QUESTIONS Q: What is Proposition 1A securitization? A: On July 28, 2009, the California legislature and Governor Arnold Schwarzenegger passed the state budget and approved a provision allowing the state to borrow 8 percent of the amount of property tax revenue apportioned to cities, counties and special districts. Under the provision, the state will be required to repay those obligations by June 30, 2013. The provision also created an option for California local public agencies to relieve the burden of loaning the state property tax revenues. The provision, called Proposition 1A Securitization, authorizes the California Statewide Communities Development Authority ("California Communities") to purchase the receivable due to local agencies from the State. Q: Who is the California Statewide Communities Development Authority? A: The California Statewide Communities Development Authority is a joint powers authority ("JPA") sponsored by the California State Association of Counties ("CSAC") and the League of California Cities ("League"). California Communities was created by CSAC and the League in 1988 to enable local government and eligible private entities access to low-cost, financing through a variety of pooled and stand-alone finance programs. Q: How does the Proposition 1A securitization work? 1 A: The legislation for the Proposition 1A securitization authorizes cities, counties, and special districts to sell their state repayment obligations to California Communities. In a simultaneous transaction, California Communities will issue bonds and remit the cash proceeds to the participating local public agencies. Bondholders will receive their repayment from the state at a later date. The legislation provides that local agencies participating in the securitization program will receive 100% of their respective Proposition 1A receivables. Q: Do I need to become a member of California Communities to participate in the program? A: No. All public agencies that are subject to the property tax diversion under Proposition 1A are eligible to participate in the program without having to join the California Communities JPA. Q: Is securitization voluntary? What if our local agency chooses not to securitize? A: Yes, this is a voluntary program. Public agencies that do not participate in the Proposition 1A Securitization Program can expect to receive repayment plus interest from the state for its obligations by June 30, 2013. The interest rate to be paid by the state to those local public agencies that do not securitize has been set by the Director of Finance at 2.0%. Q: How much will it cost our local agency to participate in the Proposition 1A Securitization Program? A: All costs of issuance and interest expense will be paid by the state. This allows agencies to receive 100% of their receivables. Some agencies may incur legal costs if they use an outside attorney for normal legal services. Q: If our local agency securitizes, will we still get the repayment interest from the state? A: No. In the case of securitization, the state will pay the interest due to bondholders and issuance costs associated with the transaction. Only agencies that do not securitize will receive interest from the state in 2013. Q: If my local agency participates in the securitization program, when can my agency expect to receive payment? A: Depending upon timing of enactment of cleanup legislation in the California legislature, California Communities is targeting completion of the securitization transaction to occur in November or early December, 2009, which would result in 50% of the payment to participating local public agencies on January 15, 2010 and 50% on May 3, 2010. Should the legislature not pass the anticipated legislative amendments, California Communities' next opportunity to securitize will likely be March, 2010. 2 Q: Will our local agency incur any liability by participating in the program? A: No. The bonds issued by California Communities are not obligations of any of the local agencies that participate in the securitization program. The California Communities joint powers agreement expressly provides that California Communities is an entity separate and apart from the participating public agencies, and "its debts, liabilities and obligations do not constitute debts, liabilities or obligations of any party to the joint powers agreement." Participating public agencies are not responsible for any repayment of debt, nor are they named in any of the bond documents. Participating public agencies also will not have any obligations related to compliance with tax or disclosure obligations on the bonds. Q: Are there any restrictions to joining? A: No. California Communities is required to accept any local entity affected by the suspension, regardless of the amount of property tax revenue lost. Q: Can redevelopment agencies participate? A. No. The diversion of tax increment revenues from redevelopment agencies that was a part of the State budget is not a "loan" and was not done under Proposition 1A and therefore redevelopment agencies cannot participate. Q: Has California Communities conducted a program like this before? A: Yes. In 2005, California Communities conducted a similar bond securitization program for local agencies when the state borrowed Vehicle License Fee ("VLF") revenues from cities and counties. California Communities securitized $455 million in VLF payments due from the state to provide advance repayment to 146 participating cities and counties. Q: How is the Proposition 1A securitization different from the VLF "gap loan" securitization? A: Under the VLF financing program in 2005, local agencies in California were required to cover the costs of issuance and pay the interest cost. As a result, local agencies only received on average about 93 cents on the dollar from their loans to the state. Under the proposed Proposition 1A Securitization Program, the state will pay for the borrowing interest incurred and the costs of issuance required for each agency to participate, allowing local agencies the ability to receive 100% of their receivables. Q: Who is the financing team for the Proposition 1A Securitization Program? A: Bond Counsel: Orrick, Herrington & Sutcliffe, LLP Underwriters: Goldman Sachs, 3 JP Morgan, Morgan Stanley, De La Rosa, and Stone & Youngberg Program Consultant: Greencoast Capital Partners LLC Trustee: Wells Fargo Bank, NA Q: What is required from our local agency to participate? A: Participating agencies must enroll in the program by going to the online Enrollment Form hosted on the California Communities website WWW.CaiorT ities.org/proplA. Enrolled agencies will received the required documentation from transaction counsel (Orrick, Herrington & Sutcliffe) including a resolution that must be adopted by their governing board. The resolution authorizes the sale of the Proposition lA receivables to California Communities. This resolution together with other signature documents and local agency legal opinions must be submitted no later than November 6, 2009. Q: What is the deadline to participate in the Proposition lA Securitization Program? A: Completed applications including resolutions passed by the board/council, participant documents signed by the authorized parties and legal opinions must be submitted by November 6, 2009. Q: When should I begin the application process? A: It is best to begin the application process as soon as possible. Each local agency is not committed to the program until all executed documentation is returned to bond counsel prior to November 6, 2009. So, it is best to begin the process early and have all the relevant documentation prepared. Q: What if I start the process and decide I don't want to participate? Can I pull out of the process half-way through? A: Each local agency is not committed until they return executed documents to bond counsel on or prior to November 6, 2009. Signed documents will be held in escrow by bond counsel and can be withdrawn prior to November 6, 2009. After November 6, 2009, agencies that have submitted the required signed documentation are committed to the transaction. Q: Will our local agency have to go through a credit rating process? How will the credit rating for these bonds be assessed? A: No. The bonds are secured by the State of California's constitutional and statutory obligation to repay the loan within the three-year time period. The ratings on the bonds will be determined by the rating agencies based upon their assessment of the credit worthiness of the transaction and the state's ability to pay. 4 Q: Are there other ways to securitize aside from the California Communities program? A: California Communities offers the only pooled Proposition 1A securitization program and is the only statutorily-authorized option that allows local agencies to securitize and have bond issuance and interest costs paid by the state. Q: Where can I get more information? A: For more information on the Proposition 1A securitization program, go to www.cacommunities.org/proplA. Q: How can I sign up for the Program? A: To enroll in the program, submit the online Enrollment Form hosted on the California Communities website www.cacommunities.org/proplA . There is no obligation on behalf of an enrolled local agency to actually participate. Each enrolled local agency must submit a complete set of signed documents with legal opinions by November 6, 2009 in order to be committed to the securitization program. Q: There are several special districts in our County with board members that are the same as the County Board of Supervisors. Does each special district need to enroll in the program, adopt the Sale Resolution and sign documentation? A: Yes. Each local agency must adopt the Sale Resolution, sign the Purchase and Sale Agreement and provide the required signature documents and legal opinions to participate in the Program. Q: Can the Resolution approving the form of Purchase and Sale Agreement be placed on the consent calendar or does it need to be a separate item on the board's agenda? A: The Resolution may be approved on the consent calendar. II OPTIO E TO THE PROF OSITION 1A SECURITIZATION FREQUENTLY AKIED QUESTIONS Q: What are my local agency's options other than participating in the Prop 1A loan securitization program? A: There are a few options to securitization. 5 1. If a local agency can absorb the loss in property tax revenue this year, it can decide to wait for the State to repay the obligation by June 30, 2013. 2. Two or more local agencies are able to reallocate or sell the obligation to another local agency. 3. Local agencies can apply for a hardship exemption. If cleanup legislation is enacted, local agencies must first enroll in and fulfill the requirements of the securitization program in order to qualify for a hardship exemption. Q: What is a hardship exemption? A: For those local agencies experiencing extreme fiscal hardship, upon written request, the Director of Finance may decrease the reduction amount. Extreme fiscal hardship may include a local agency that: • is in bankruptcy proceedings; • may be required to seek bankruptcy protection as a result of the reduction in property tax revenue; • does not have sufficient reserves to continue to provide a basic level of core services. If the Director of Finance decreases a local agency's reduction as a result of hardship, the amount of the decrease will be allocated proportionately among other local agencies within the county, not to exceed more than 10 percent of the total reduction amounts for all local agencies within the county. Q: How does my local agency apply for a hardship exemption? A: The final hardship application procedures have not been established and are not expected to be established until after the cleanup legislation is enacted by the legislature. While current language is expected to change, current language states that a written request must be received by the Director of Finance by October 15, 2009. The Director of Finance must approve or reject the requests for a hardship exemption by November 15, 2009. The Director of Finance may not grant decreases in the suspension amount that totals more than 10 percent of the combined total shift of property tax per county. Local agencies that believe they would qualify for a hardship exemption should prepare to file a request with the State Director of Finance by October 15, 2009. If the cleanup legislation passes, this deadline may be extended, but under current law October 15 is the deadline. Q: What can I expect to happen if my local agency does not participate in the Ca:ifornia Communities Proposition 1A Securitization Program? A: If your local agency can sustain an 8 percent property tax shift this year, and your local agency chooses not to participate in California Communities' loan securitization program, then the local agency can expect to be repaid directly from the state by June 30, 2013, with interest. 6 Q: What is the interest rate for those entities that choose not to participate in the Prop 1A loan securitization program? A: The interest rate has been determined by the State Director of Finance to be 2.0%. Q: Are there other options? A: If the cleanup legislation passes, a local agency may be able to sell the receivable to another local agency. Q. How would a local agency sell its Prop 1A Receivable to another local agency? A: The cleanup legislation is expected to provide procedures for local agencies to sell Proposition 1A receivables to another local agency. The cleanup legislation is currently pending approval by the State Senate. III PROPOSITION 1A SUSPENSION FREQUENTLY ASKED QUESTIONS Q: When will we see the reduction in our property tax revenues? A: You will see a reduction in your property tax revenues when you receive your property taxes as dispersed by the county auditor. The county auditor is required to shift the 8 percent property tax revenue in two installments, once before January 15, 2010, and again after the first transfer but no later than May 3, 2010. Q: When is the state required to repay the "loan"? A: ABX4 15 indicates the state's deadline to repay the loan is June 30, 2013. Q: And at what interest rate on the "loan"? A: The interest rate for those agencies that do not sell the receivable to the joint powers authority has been set by the Director of Finance at 2.0%. Q: Are there any guarantees that the state will repay us? A: The State Constitution requires that the state provide repayment within a three-year period. ABX4 15 sets the repayment deadline at June 30, 2013. 7 The repayment is also continuously appropriated in the General Fund and authorizes the State Controller to make the repayment. The repayment is a priority payment behind General Fund obligations to schools and general obligation bonds. If the state has not fully repaid local agencies by June 30, 2013, local agencies or the bond issuer may seek a writ of mandamus to compel the Controller to fully pay the amounts the state is obligated to pay. The petition for writ of mandamus has priority and preference in setting and review and may be filed in the California Supreme Court. Q: Will next year's property taxes (2010-11) be affected by this year's Prop 1A suspension? A: It is highly unlikely that the Prop lA protection of 2010-11 property taxes could be suspended. The State Constitution indicates that the property tax protection provisions of Proposition 1A cannot be suspended more than twice in a 10-year period (the first year begins with the first suspension). Further, the state cannot suspend Proposition 1A until all previous loans are paid in full. 8 RESOLUTION NO. CITY COUNCIL OF THE CITY OF SAN JACINTO A RESOLUTION APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE AND SALE AGREEMENT AND RELATED DOCUMENTS WITH RESPECT TO THE SALE OF THE SELLER'S PROPOSITION 1A RECEIVABLE FROM THE STATE; AND DIRECTING AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, pursuant to Section 25.5 of Article XIII of the California Constitution and Chapter 14XXXX of the California Statutes of 2009 (Assembly Bill No. 15), as amended (the "Act"), certain local agencies within the State of California (the "State") are entitled to receive certain payments to be made by the State on or before June 30, 2013, as reimbursement for reductions in the percentage of the total amount of ad valorem property tax revenues allocated to such local agencies during the State's 2009-10 fiscal year (the "Reimbursement Payments"), which reductions have been authorized pursuant to Sections 100.05 and 100.06 of the California Revenue and Taxation Code; WHEREAS, the City of San Jacinto, a local agency within the meaning of Section 6585(1) of the California Government Code (the "Seller"), is entitled to and has determined to sell all right, title and interest of the Seller in and to its "Proposition 1A receivable", as defined in Section 6585(g) of the California Government Code (the "Proposition IA Receivable"), namely, the right to payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(1)(B)(iii) of Article XLII of the California Constitution and Section 100.06 of the California Revenue and Taxation Code, in order to obtain money to fund public capital improvements or working capital; WHEREAS, the Seller is authorized to sell or otherwise dispose of its property as the interests of its residents require; WHEREAS, the California Statewide Communities Development Authority, a joint exercise of powers authority organized and existing under the laws of the State (the "Purchaser"), has been authorized pursuant to Section 6588(x) of the California Government Code to purchase the Proposition IA Receivable; WHEREAS, the Purchaser desires to purchase the Proposition 1A Receivable and the Seller desires to sell the Proposition IA Receivable pursuant to a purchase and sale agreement by and between the Seller and the Purchaser in the form presented to this City Council (the "Sale Agreement") for the purposes set forth herein; WHEREAS, in order to finance the purchase price of the Proposition IA Receivable from the Seller and the purchase price of other Proposition IA Receivables from other local agencies, the Purchaser will issue its bonds (the "Bonds") pursuant to Section 6590 of the California Government Code and an Indenture (the "Indenture"), by and between the Purchaser and Wells Fargo Bank, National Association, as trustee (the "Trustee"), which Bonds will be payable solely from the proceeds of the Seller's Proposition IA Receivable and other Proposition 1A Receivables sold to the Purchaser by local agencies in connection with the issuance of the Bonds; WHEREAS, the Seller acknowledges that (i) any transfer of its Proposition lA Receivable to the Purchaser pursuant to the Sale Agreement shall be treated as an absolute sale and transfer of the property so transferred and not as a pledge or grant of a security interest by City of San Jacinto to secure a borrowing, (ii) any such sale of its Proposition 1A Receivable to the Purchaser shall automatically be perfected without the need for physical delivery, recordation, filing or further act, (iii) the provisions of Division 9 (commencing with Section 9101) of the California Commercial Code and Sections 954.5 to 955.1 of the California Civil Code, inclusive, shall not apply to the sale of its Proposition lA Receivable, and (iv) after such transfer, the Seller shall have no right, title, or interest in or to the Proposition IA Receivable sold to the Purchaser and the Proposition 1A Receivable will thereafter be owned, received, held and disbursed only by the Purchaser or a trustee or agent appointed by the Purchaser; WHEREAS, the Seller acknowledges that the Purchaser will grant a security interest in the Proposition 1A Receivable to the Trustee and any credit enhancer to secure payment of the Bonds; WHEREAS, a portion of the proceeds of the Bonds will be used by the Purchaser to, among other things, pay the purchase price of the Proposition 1A Receivable; WHEREAS, the Seller will use the proceeds received from the sale of the Proposition lA Receivable for any lawful purpose as permitted under the applicable laws of the State; NOW THEREFORE, the City Council of the City of San Jacinto hereby resolves as follows: Section 1. All of the recitals set forth above are true and correct, and this City Council hereby so finds and determines. Section 2. The Seller hereby authorizes the sale of the Proposition IA Receivable to the Purchaser for a price equal to the amount certified as the Initial Amount (as defined in the Sale Agreement) by the County auditor pursuant to the Act. The form of Sale Agreement presented to the City Council is hereby approved. An Authorized Officer (as set forth in Appendix A of this Resolution, attached hereto and by this reference incorporated herein) is hereby authorized and directed to execute and deliver the Sale Agreement on behalf of the Seller, which shall be in the form presented at this meeting. Section 3. Any Authorized Officer is hereby authorized and directed to send, or to cause to be sent, an irrevocable written instruction to the State Controller (the "Irrevocable Written Instruction") notifying the State of the sale of the Proposition 1A Receivable and instructing the disbursement pursuant to Section 6588.6(c) of California Government Code of the Proposition 1 A Receivable to the Trustee, on behalf of the Purchaser, which Irrevocable Written Instruction shall be in the form presented at this meeting. 2 Section 4. The Authorized Officers and such other Seller officers, as appropriate, are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents, including but not limited to, if required, appropriate escrow instructions relating to the delivery into escrow of executed documents prior to the closing of the Bonds, and such other documents mentioned in the Sale Agreement or the Indenture, which any of them may deem necessary or desirable in order to implement the Sale Agreement and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution; and all such actions heretofore taken by such officers are hereby ratified, confirmed and approved. Section 5. All consents, approvals, notices, orders, requests and other actions permitted or required by any of the documents authorized by this Resolution, whether before or after the sale of the Proposition IA Receivable or the issuance of the Bonds, including without limitation any of the foregoing that may be necessary or desirable in connection with any default under or amendment of such documents, may be given or taken by an Authorized Officer without further authorization by this City Council, and each Authorized Officer is hereby authorized and directed to give any such consent, approval, notice, order or request, to execute any necessary or appropriate documents or amendments, and to take any such action that such Authorized Officer may deem necessary or desirable to further the purposes of this Resolution. Section 6. The City Council acknowledges that, upon execution and delivery of the Sale Agreement, the Seller is contractually obligated to sell the Proposition IA Receivable to the Purchaser pursuant to the Sale Agreement and the Seller shall not have any option to revoke its approval of the Sale Agreement or to determine not to perform its obligations thereunder. 3 Section 7. This Resolution shall take effect from and after its adoption and approval. PASSED AND ADOPTED by the City Council of the City of San Jacinto, State of California, this day of , 2009, by the following vote: AYES: NOES: ABSENT: Mayor Attest: City Clerk Approved as to form : SELLER'S COUNSEL By Dated: 4 APPENDIX A CITY OF SAN JACINTO Authorized Officers: Barry McClellan, City Manager Tim Hults, Assistant City Manager Dale Stubblefield, Mayor any designee of any of them, as appointed in a written certificate of such Authorized Officer delivered to the Trustee. CITY OF SAN JACINTO, CALIFORNIA, as Seller and CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY, as Purchaser PURCHASE AND SALE AGREEMENT Dated as of November 1, 2009 TABLE OF CONTENTS Page 1. DEFINITIONS AND INTERPRETATION 2 2. AGREEMENT TO SELL AND PURCHASE; CONDITIONS PRECEDENT 2 3. PURCHASE PRICE, CONVEYANCE OF PROPOSITION 1A RECEIVABLE AND PAYMENT OF PURCHASE PRICE 3 4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 4 5. REPRESENTATIONS AND WARRANTIES OF THE SELLER 5 6. COVENANTS OF THE SELLER 7 7. THE PURCHASER'S ACKNOWLEDGMENT 9 8. NOTICES OF BREACH 9 9. LIABILITY OF SELLER; INDEMNIFICATION 9 10. LIMITATION ON LIABILITY .. 10 11. THE SELLER'S ACKNOWLEDGMENT ,. 10 12. NOTICES . 10 13. AMENDMENTS .. 10 14. SUCCESSORS AND ASSIGNS . 10 15. THIRD PARTY RIGHTS . 11 16. PARTIAL INVALIDITY .. 11 17. COUNTERPARTS 11 18. ENTIRE AGREEMENT .. 11 19. GOVERNING LAW .. 12 EXHIBIT A — DEFINITIONS A-1 EXHIBIT B1 — OPINION OF SELLER'S COUNSEL B1-1 EXHIBIT B2 — BRINGDOWN OPINION OF SELLER'S COUNSEL B2-1 EXHIBIT Cl — CLERK'S CERTIFICATE C1-1 EXHIBIT C2 — SELLER CERTIFICATE C2-1 EXHIBIT C3 — BILL OF SALE AND BRINGDOWN CERTIFICATE C3-1 EXHIBIT D — IRREVOCABLE INSTRUCTIONS TO CONTROLLER D-1 EXHIBIT E — ESCROW INSTRUCTION LETTER E-1 PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT, dated as of November 1, 2009 (this "Agreement"), is entered into by and between: (1) CITY OF SAN JACINTO, a local agency of the State of California within the meaning of Section 6585(f) of the California Government Code (the "Seller"); and (2) CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California (the "Purchaser"). RECITALS A. Pursuant to Section 25.5 of Article XIII of the California Constitution and Section 100.06 of the California Revenue and Taxation Code, local agencies within the meaning of Section 6585(f) of the California Government Code are entitled to receive certain payments to be made by the State of California (the "State") on or before June 30, 2013, as reimbursement for reductions in the percentage of the total amount of ad valorem property tax revenues allocated to such local agencies during the State's 2009-10 fiscal year, which reductions have been authorized pursuant to Sections 100.05 and 100.06 of the California Revenue and Taxation Code. B. The Seller is the owner of the Proposition 1A Receivable (as defined below) and is entitled to and has determined to sell all right, title and interest in and to the Proposition 1A receivable, namely, the right to payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(1)(B)(iii) of Article XIII of the California Constitution and Section 100.06 of the California Revenue and Taxation Code, in order to obtain money to fund any lawful purpose as permitted under the applicable laws of the State. C. The Seller is authorized to sell or otherwise dispose of its property as the interests of its residents require. D. The Purchaser, a joint exercise of powers authority organized and existing under the laws of the State, has been authorized pursuant to Section 6588(x) of the California Government Code to purchase the Proposition lA Receivable. E. The Seller is willing to sell, and the Purchaser is willing to purchase, the Proposition lA Receivable upon the terms specified in this Agreement. F. Pursuant to its Proposition 1A Receivable Financing Program (the "Program"), the Purchaser will issue its bonds (the "Bonds") pursuant to an Indenture (the "Indenture"), between the Purchaser and Wells Fargo Bank, National Association, as trustee (the "Trustee"), and will use a portion of the proceeds thereof to purchase the Proposition 1A Receivable from the Seller. G. The Purchaser will grant a security interest in such Proposition 1A Receivable to the Trustee and each Credit Enhancer to secure the Bonds. AGREEMENT NOW, THEREFORE, in consideration of the above Recitals and the mutual covenants herein contained, the parties hereto hereby agree as follows: 1. Definitions and Interpretation. (a) For all purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires, capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in Exhibit A attached hereto and which is incorporated by reference herein. (b) The words "hereof," "herein," "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; section and exhibit references contained in this Agreement are references to sections and exhibits in or to this Agreement unless otherwise specified; and the term "including" shall mean "including without limitation." (c) Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time may be amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments and exhibits thereto and instruments incorporated therein; and any references to a Person are also to its permitted successors and assigns. 2. Agreement to Sell and Purchase; Conditions Precedent. (a) The Seller agrees to sell, and the Purchaser agrees to purchase, on the Closing Date, for an amount equal to the Purchase Price, all right, title and interest of the Seller in and to the "Proposition 1A receivable" as defined in Section 6585(g) of the California Government Code (the "Proposition 1A Receivable"), namely, the right to payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(1)(B)(iii) of Article XIII of the California Constitution and Section 100.06 of the California Revenue and Taxation Code. The Purchase Price shall be paid by the Purchaser to the Seller in two equal cash installment payments, without interest (each, an "Installment Payment" and, collectively, the "Installment Payments"), on January 15, 2010, and May 3, 2010 (each a "Payment Date" and, collectively, the "Payment Dates"). The Purchaser shall pay the Purchase Price by wire transfer pursuant to wire instructions provided by the Seller to the Trustee by e-mail to john.deleray@wellsfargo.com or by facsimile to 213-614-3355, Attention: John Deleray. If wire instructions are not provided to the Trustee (or if such wire instructions are invalid) payment will be made by check mailed to the Seller's Principal Place of Business. (b) The performance by the Purchaser of its obligations hereunder shall be conditioned upon: (i) Transaction Counsel receiving on or before the date the Bonds are sold (the "Pricing Date"), to be held in escrow until the Closing Date and then delivered to the Purchaser on the Closing Date, the following documents 2 duly executed by the Seller or its counsel, as applicable: (1) an opinion of counsel to the Seller dated the Pricing Date in substantially the form attached hereto as Exhibit Bl, (2) certificates dated the Pricing Date in substantially the forms attached hereto as Exhibit C 1 and Exhibit C2, (3) irrevocable instructions to the Controller dated as of the Closing Date in substantially the form attached hereto as Exhibit D, (4) this Agreement, (5) a certified copy of the resolution of the Seller's City Council approving this Agreement, the transactions contemplated hereby and the documents attached hereto as exhibits, and (6) an escrow instruction letter in substantially the form attached hereto as Exhibit E; (ii) Transaction Counsel receiving on or before the Pricing Date, (1) a bringdown opinion of counsel to the Seller dated as of the Closing Date in substantially the form attached hereto as Exhibit B2, and (2) a bill of sale and bringdown certificate of the Seller (the "Bill of Sale") in substantially the form attached hereto as Exhibit C3; provided that the Purchaser may waive, in its sole discretion, the requirements of Section 2(b)(ii)(1); (iii) the Purchaser issuing Bonds in an amount which will be sufficient to pay the Purchase Price; and (iv) the receipt by the Purchaser of a certification of the County Auditor confirming the Initial Amount of the Proposition 1 A Receivable pursuant to the Act. (c) The performance by the Seller of its obligations hereunder shall be conditioned solely upon the Purchaser's issuance of the Bonds and its execution and delivery of this Agreement, pursuant to which it is legally obligated to pay the Installment Payments to the Seller on the Payment Dates as set forth in this Agreement, and no other act or omission on the part of the Purchaser or any other party shall excuse the Seller from performing its obligations hereunder. Seller specifically disclaims any right to rescind this Agreement, or to assert that title to the Proposition lA Receivable has not passed to the Purchaser, should Purchaser fail to make Installment Payments in the requisite amounts on the Payment Dates. 3. Purchase Price, Conveyance of Proposition 1A Receivable and Payment of Purchase Price. (a) Upon pricing of the Bonds by the Purchaser, the Purchaser will inform the Seller that it will pay the Purchase Price in Installment Payments on the Payment Dates. (b) In consideration of the Purchaser's agreement to pay and deliver to the Seller the Installment Payments on the Payment Dates, the Seller agrees to (i) transfer, grant, bargain, sell, assign, convey, set over and deliver to the Purchaser, absolutely and not as collateral security, without recourse except as expressly provided herein, and the Purchaser agrees to purchase, accept and receive, the Proposition 1A Receivable, and (ii) assign to the Purchaser, to the extent permitted by law, all present or future rights, if any, of the Seller to enforce or cause the enforcement of payment of the Proposition 1 A Receivable pursuant to the Act and other 3 applicable law. Such transfer, grant, bargain, sale, assignment, conveyance, set over and delivery is hereby expressly stated to be a sale and, pursuant to Section 6588.6(b) of the California Government Code, shall be treated as an absolute sale and transfer of the Proposition lA Receivable, and not as a grant of a security interest by the Seller to secure a borrowing. This is the statement referred to in Sections 6588.6(b) and (c) of the California Government Code. 4. Representations and Warranties of the Purchaser. The Purchaser represents and warrants to the Seller, as of the date hereof, as follows: (a) The Purchaser is duly organized, validly existing and in good standing under the laws of the State of California. (b) The Purchaser has full power and authority to enter into this Agreement and to perform its obligations hereunder and has duly authorized such purchase and assignment of the Proposition lA Receivable by the Purchaser by all necessary action. (c) Neither the execution and delivery by the Purchaser of this Agreement, nor the performance by the Purchaser of its obligations hereunder, shall conflict with or result in a breach or default under any of its organizational documents, any law, rule, regulation, judgment, order or decree to which it is subject or any agreement or instrument to which it is a party. (d) To the best of the knowledge of the Purchaser, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, is pending or threatened in any way against the Purchaser affecting the existence of the Purchaser or the titles of its commissioners or officers, or seeking to restrain or to enjoin the purchase of the Proposition 1A Receivable or to direct the application of the proceeds of the purchase thereof, or in any way contesting or affecting the validity or enforceability of any of the Transaction Documents or any other applicable agreements or any action of the Purchaser contemplated by any of said documents, or in any way contesting the powers of the Purchaser or its authority with respect to the Transaction Documents to which it is a party or any other applicable agreement, or any action on the part of the Purchaser contemplated by the Transaction Documents, or in any way seeking to enjoin or restrain the Purchaser from purchasing the Proposition 1 A Receivable or which if determined adversely to the Purchaser would have an adverse effect upon the Purchaser's ability to purchase the Proposition lA Receivable, nor to the knowledge of the Purchaser is there any basis therefor. (e) This Agreement, and its execution, delivery and performance hereof have been duly authorized by it, and this Agreement has been duly executed and delivered by it and constitutes its valid and binding obligation enforceable against it in accordance with the terms hereof, subject to the effect of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws relating to or affecting creditors' rights generally or the application of equitable principles in any proceeding, whether at law or in equity. (f) The Purchaser is a separate legal entity, acting solely through its authorized representatives, from the Seller, maintaining separate records, books of account, assets, bank accounts and funds, which are not and have not been commingled with those of the Seller. 4 (g) All approvals, consents, authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would adversely affect, the purchase by the Purchaser of the Proposition 1A Receivable or the performance by the Purchaser of its obligations under the Transaction Documents to which it is a party and any other applicable agreements, have been obtained and are in full force and effect. (h) Insofar as it would materially adversely affect the Purchaser's ability to enter into, can -y out and perform its obligations under any or all of the Transaction Documents to which it is a party, or consummate the transactions contemplated by the same, the Purchaser is not in breach of or default under any applicable constitutional provision, law or administrative regulation of the State of California or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which it is a party or to which it or any of its property or assets is otherwise subject, and, to the best of the knowledge of the Purchaser, no event has occurred and is continuing which with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument, and the execution and delivery by the Purchaser of the Transaction Documents to which it is a party, and compliance by the Purchaser with the provisions thereof, under the circumstances contemplated thereby, do not and will not conflict with or constitute on the part of the Purchaser a breach of or default under any agreement or other instrument to which the Purchaser is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the Purchaser is subject. 5. Representations and Warranties of the Seller. The Seller hereby represents and warrants to the Purchaser, as of the date hereof, as follows: (a) The Seller is a local agency within the meaning of Section 6585(f) of the California Government Code, with full power and authority to execute and deliver this Agreement and to carry out its terms. (b) The Seller has full power, authority and legal right to sell and assign the Proposition lA Receivable to the Purchaser and has duly authorized such sale and assignment to the Purchaser by all necessary action; and the execution, delivery and performance by the Seller of this Agreement has been duly authorized by the Seller by all necessary action. (c) This Agreement has been, and as of the Closing Date the Bill of Sale will have been, duly executed and delivered by the Seller and, assuming the due authorization, execution and delivery of this Agreement by the Purchaser, each of this Agreement and the Bill of Sale constitutes a legal, valid and binding obligation of the Seller enforceable in accordance with its terms, subject to the effect of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws relating to or affecting creditors' rights generally or the application of equitable principles in any proceeding, whether at law or in equity. (d) All approvals, consents, authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would adversely affect, the sale by the Seller of the Proposition lA Receivable or the performance by the Seller of its 5 obligations under the Resolution and the Transaction Documents to which it is a party and any other applicable agreements, have been obtained and are in full force and effect. (e) Insofar as it would materially adversely affect the Seller's ability to enter into, carry out and perform its obligations under any or all of the Transaction Documents to which it is a party, or consummate the transactions contemplated by the same, the Seller is not in breach of or default under any applicable constitutional provision, law or administrative regulation of the State of California or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which it is a party or to which it or any of its property or assets is otherwise subject, and, to the best of the knowledge of the Seller, no event has occurred and is continuing which with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument, and the adoption of the Resolution and the execution and delivery by the Seller of the Transaction Documents to which it is a party, and compliance by the Seller with the provisions thereof, under the circumstances contemplated thereby, do not and will not conflict with or constitute on the part of the Seller a breach of or default under any agreement or other instrument to which the Seller is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the Seller is subject. (f) To the best of the knowledge of the Seller, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, is pending or threatened in any way against the Seller affecting the existence of the Seller or the titles of its City Council members or officers to their respective offices, or seeking to restrain or to enjoin the sale of the Proposition 1A Receivable or to direct the application of the proceeds of the sale thereof, or in any way contesting or affecting the validity or enforceability of any of the Transaction Documents or any other applicable agreements or any action of the Seller contemplated by any of said documents, or in any way contesting the powers of the Seller or its authority with respect to the Resolution or the Transaction Documents to which it is a party or any other applicable agreement, or any action on the part of the Seller contemplated by the Transaction Documents, or in any way seeking to enjoin or restrain the Seller from selling the Proposition lA Receivable or which if determined adversely to the Seller would have an adverse effect upon the Seller's ability to sell the Proposition 1A Receivable, nor to the knowledge of the Seller is there any basis therefor. (g) Prior to the sale of the Proposition lA Receivable to the Purchaser, the Seller was the sole owner of the Proposition lA Receivable, and has such right, title and interest to the Proposition 1A Receivable as provided in the Act. From and after the conveyance of the Proposition 1A Receivable by the Seller to Purchaser on the Closing Date, the Seller shall have no right, title or interest in or to the Proposition 1A Receivable. Except as provided in this Agreement, the Seller has not sold, transferred, assigned, set over or otherwise conveyed any right, title or interest of any kind whatsoever in all or any portion of the Proposition 1A Receivable, nor has the Seller created, or to the best knowledge of the Seller permitted the creation of, any lien, pledge, security interest or any other encumbrance (a "Lien") thereon. Prior to the sale of the Proposition 1A Receivable to the Purchaser, the Seller held title to the Proposition 1A Receivable free and clear of any Liens. As of the Closing Date, this Agreement, together with the Bill of Sale, constitutes a valid and absolute sale to the buyer of all of the Seller's right, title and interest in and to the Proposition lA Receivable. 6 (h) The Seller acts solely through its authorized officers or agents. (i) The Seller maintains records and books of account separate from those of the Purchaser. (j) The Seller maintains its respective assets separately from the assets of the Purchaser (including through the maintenance of separate bank accounts); the Seller's funds and assets, and records relating thereto, have not been and are not commingled with those of the Purchaser. (k) The Seller's principal place of business and chief executive office is located at 595 S. San Jacinto Ave, San Jacinto, CA 92583. (1) The aggregate amount of the Installment Payments is reasonably equivalent value for the Proposition lA Receivable. The Seller acknowledges that the amount payable to or on behalf of the Purchaser by the State with respect to the Proposition 1A Receivable will be in excess of the Purchase Price and the Initial Amount of the Proposition 1A Receivable and confirms that it has no claim to any such excess amount whatsoever. (m) The Seller does not act as an agent of the Purchaser in any capacity, but instead presents itself to the public as an entity separate from the Purchaser. (n) The Seller has not guaranteed and shall not guarantee the obligations of the Purchaser, nor shall it hold itself out or permit itself to be held out as having agreed to pay or as being liable for the debts of the Purchaser; and the Seller has not received nor shall the Seller accept any credit or financing from any Person who is relying upon the availability of the assets of the Purchaser in extending such credit or financing. The Seller has not purchased and shall not purchase any of the Bonds or any interest therein. (o) All transactions between or among the Seller, on the one hand, and the Purchaser on the other hand (including, without limitation, transactions governed by contracts for services and facilities, such as payroll, purchasing, accounting, legal and personnel services and office space), whether existing on the date hereof or entered into after the date hereof, shall be on terms and conditions (including, without limitation, terms relating to amounts to be paid thereunder) which are believed by each such party thereto to be both fair and reasonable and comparable to those available on an arms-length basis from Persons who are not affiliates. (p) The Seller has not, under the provisions of Section 100.06(b) of the California Revenue and Taxation Code, received a reduction for hardship or otherwise, nor has it requested, made arrangements for, or completed a reallocation or exchange with any other local agency, of the total amount of the ad valorem property tax revenue reduction allocated to the Seller pursuant to Section 100.06(a) of the California Revenue and Taxation Code. 6. Covenants of the Seller. (a) The Seller shall not take any action or omit to take any action which adversely affects the interests of the Purchaser in the Proposition lA Receivable and in the proceeds thereof. The Seller shall not take any action or omit to take any action that shall adversely affect 7 the ability of the Purchaser, and any assignee of the Purchaser, to receive payments of the Proposition 1A Receivable. (b) The Seller shall not take any action or omit to take any action that would impair the validity or effectiveness of the Act, nor, without the prior written consent of the Purchaser or its assignees, agree to any amendment, modification, termination, waiver or surrender of, the terms of the Act, or waive timely performance or observance under the Act. Nothing in this agreement shall impose a duty on the Seller to seek to enforce the Act or to seek enforcement thereof by others, or to prevent others from modifying, terminating, discharging or impairing the validity or effectiveness of the Act. (c) Upon request of the Purchaser or its assignee, (i) the Seller shall execute and deliver such further instruments and do such further acts (including being named as a plaintiff in an appropriate proceeding) as may be reasonably necessary or proper to carry out more effectively the purposes and intent of this Agreement and the Act, and (ii) the Seller shall take all actions necessary to preserve, maintain and protect the title of the Purchaser to the Proposition lA Receivable. (d) On or before the Closing Date, the Seller shall send (or cause to be sent) an irrevocable instruction to the Controller pursuant to Section 6588.6(c) of California Government Code to cause the Controller to disburse all payments of the Proposition 1A Receivable to the Trustee, together with notice of the sale of the Proposition 1A Receivable to the Purchaser and the assignment of all or a portion of such assets by the Purchaser to the Trustee. Such notice and instructions shall be in the form of Exhibit D hereto. The Seller shall not take any action to revoke or which would have the effect of revoking, in whole or in part, such instructions to the Controller. Upon sending such irrevocable instruction, the Seller shall have relinquished and waived any control over the Proposition 1A Receivable, any authority to collect the Proposition 1A Receivable, and any power to revoke or amend the instructions to the Controller contemplated by this paragraph. Except as provided in Section 2(c) of this Agreement, the Seller shall not rescind, amend or modify the instruction described in the first sentence of this paragraph. The Seller shall cooperate with the Purchaser or its assignee in giving instructions to the Controller if the Purchaser or its assignee transfers the Proposition 1A Receivable. In the event that the Seller receives any proceeds of the Proposition 1A Receivable, the Seller shall hold the same in trust for the benefit of the Purchaser and the Trustee and each Credit Enhancer, as assignees of the Purchaser, and shall promptly remit the same to the Trustee. (e) The Seller hereby covenants and agrees that it will not at any time institute against the Purchaser, or join in instituting against the Purchaser, any bankruptcy, reorganization, arrangement, insolvency, liquidation, or similar proceeding under any United States or state bankruptcy or similar law. (f) The financial statements and books and records of the Seller prepared after the Closing Date shall reflect the separate existence of the Purchaser and the sale to the Purchaser of the Proposition 1A Receivable. (g) The Seller shall treat the sale of the Proposition 1A Receivable as a sale for regulatory and accounting purposes. 8 (h) From and after the date of this Agreement, the Seller shall not sell, transfer, assign, set over or otherwise convey any right, title or interest of any kind whatsoever in all or any portion of the Proposition 1A Receivable, nor shall the Seller create, or to the knowledge of the Seller permit the creation of, any Lien thereon. 7. The Purchaser's Acknowledgment. The Purchaser acknowledges that the Proposition lA Receivable is not a debt or liability of the Seller, and that the Proposition lA Receivable is payable solely by the State from the funds of the State provided therefor. Consequently, neither the taxing power of the Seller, nor the full faith and credit thereof is pledged to the payment of the Proposition 1A Receivable. No representation is made by the Seller concerning the obligation or ability of the State to make any payment of the Proposition lA Receivable pursuant to Section 100.06 of the Revenue and Taxation Code and Section 25.5 of Article XIII of the California Constitution, nor is any representation made with respect to the ability of the State to enact any change in the law applicable to the Transaction Documents (including without limitation Section 100.06 of the Revenue and Taxation Code or Section 6588.6 of the Government Code). The Purchaser acknowledges that the Seller has no obligation with respect to any offering document or disclosure related to the Bonds. 8. Notices of Breach. (a) Upon discovery by the Seller or the Purchaser that the Seller or Purchaser has breached any of its covenants or that any of the representations or warranties of the Seller or the Purchaser are materially false or misleading, in a manner that materially and adversely affects the value of the Proposition 1A Receivable or the Purchase Price thereof, the discovering party shall give prompt written notice thereof to the other party and to the Trustee, as assignee of the Purchaser, who shall, pursuant to the Indenture, promptly thereafter notify each Credit Enhancer and the Rating Agencies. (b) The Seller shall not be liable to the Purchaser, the Trustee, the holders of the Bonds, or any Credit Enhancer for any loss, cost or expense resulting from the failure of the Trustee, any Credit Enhancer or the Purchaser to promptly notify the Seller upon the discovery by an authorized officer of the Trustee, any Credit Enhancer or the Purchaser of a breach of any covenant or any materially false or misleading representation or warranty contained herein. 9. Liability of Seller; Indemnification. The Seller shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Seller under this Agreement. The Seller shall indemnify, defend and hold harmless the Purchaser, the Trustee and each Credit Enhancer, as assignees of the Purchaser, and their respective officers, directors, employees and agents from and against any and all costs, expenses, losses, claims, damages and liabilities to the extent that such cost, expense, loss, claim, damage or liability arose out of, or was imposed upon any such Person by the Seller's breach of any of its covenants contained herein or any materially false or misleading representation or warranty of the Seller contained herein. Notwithstanding anything to the contrary herein, the Seller shall have no liability for the payment of the principal of or interest on the Bonds issued by the Purchaser. 9 10. Limitation on Liability. (a) The Seller and any officer or employee or agent of the Seller may rely in good faith on the advice of counsel or on any document of any kind, prima facie properly executed and submitted by any Person respecting any matters arising hereunder. The Seller shall not be under any obligation to appear in, prosecute or defend any legal action regarding the Act that is unrelated to its specific obligations under this Agreement. (b) No officer or employee of the Seller shall have any liability for the representations, warranties, covenants, agreements or other obligations of the Seller hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Seller. 11. The Seller's Acknowledgment. The Seller hereby agrees and acknowledges that the Purchaser intends to assign and grant a security interest in all or a portion of (a) its rights hereunder and (b) the Proposition 1A Receivable, to the Trustee and each Credit Enhancer pursuant to the Indenture. The Seller further agrees and acknowledges that the Trustee, the holders of the Bonds, and each Credit Enhancer have relied and shall continue to rely upon each of the foregoing representations, warranties and covenants, and further agrees that such Persons are entitled so to rely thereon. Each of the above representations, warranties and covenants shall survive any assignment and grant of a security interest in all or a portion of this Agreement or the Proposition 1A Receivable to the Trustee and each Credit Enhancer and shall continue in full force and effect, notwithstanding any subsequent termination of this Agreement and the other Transaction Documents. The above representations, warranties and covenants shall inure to the benefit of the Trustee and each Credit Enhancer. 12. Notices. All demands upon or, notices and communications to, the Seller, the Purchaser, the Trustee or the Rating Agencies under this Agreement shall be in writing, personally delivered or mailed by certified mail, return receipt requested, to such party at the appropriate notice address, and shall be deemed to have been duly given upon receipt. 13. Amendments. This Agreement may be amended by the Seller and the Purchaser, with (a) the consent of the Trustee, (b) the consent of each Credit Enhancer, and (c) a Rating Agency Confirmation, but without the consent of any of the holders of the Bonds, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement. Promptly after the execution of any such amendment, the Purchaser shall furnish written notification of the substance of such amendment to the Trustee and to the Rating Agencies. 14. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Seller, the Purchaser and their respective successors and permitted assigns. The Seller may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the Purchaser. Except as specified herein, the Purchaser may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the Seller. 10 15. Third Party Rights. The Trustee and each Credit Enhancer are express and intended third party beneficiaries under this Agreement. Nothing expressed in or to be implied from this Agreement is intended to give, or shall be construed to give, any Person, other than the parties hereto, the Trustee, and each Credit Enhancer, and their permitted successors and assigns hereunder, any benefit or legal or equitable right, remedy or claim under or by virtue of this Agreement or under or by virtue of any provision herein. 16. Partial Invalidity. If at any time any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions of this Agreement nor the legality, validity or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby. 17. Counterparts. This Agreement may be executed in any number of identical counterparts, any set of which signed by all the parties hereto shall be deemed to constitute a complete, executed original for all purposes. 18. Entire Agreement. This Agreement sets forth the entire understanding and agreement of the parties with respect to the subject matter hereof and supersedes any and all oral or written agreements or understandings between the parties as to the subject matter hereof 11 19. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. IN WITNESS WHEREOF, the Seller and the Purchaser have caused this Agreement to be duly executed as of the date first written above. CITY OF SAN JACINTO, as Seller By: Authorized Officer CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY, as Purchaser By: Authorized Signatory 12 EXHIBIT A DEFINITIONS For all purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires, capitalized terms not otherwise defined herein shall have the meanings set forth below. "Act" means Chapter 14XXXX of the California Statutes of 2009 (Assembly Bill No. 15), as amended. "Bill of Sale" has the meaning given to that term in Section 2(b)(ii) hereof. "Closing Date" means the date on which the Bonds are issued. The Closing Date is expected to be November 19, 2009, but the Purchaser may change the Closing Date by providing e-mail notification to crogers@sanjacintoca.us not later than one day prior to the Closing Date. "Controller" means the Controller of the State. "County Auditor" means the auditor or auditor-controller of the county within which the Seller is located. "Credit Enhancer" means any municipal bond insurance company, bank or other financial institution or organization which is performing in all material respects its obligations under any Credit Support Instrument for some or all of the Bonds. "Credit Support Instrument" means a policy of insurance, a letter of credit, a stand-by purchase agreement, a revolving credit agreement or other credit arrangement pursuant to which a Credit Enhancer provides credit or liquidity support with respect to the payment of interest, principal or purchase price of the Bonds. "Initial Amount" means, with respect to the Proposition 1A Receivable, the amount of property tax revenue reallocated away from the Seller pursuant to the provisions of Section 100.06 of the Revenue and Taxation Code, as certified by the County Auditor pursuant to the Act. "Installment Payments" have the meaning set forth in Section 2(a). "Payment Dates" have the meaning set forth in Section 2(a). "Pricing Date" means the date on which the Bonds are sold. The Pricing Date is expected to be November 10, 2009, but the Purchaser may change the Pricing Date by providing e-mail notification to crogers@sanjacintoca.us not later than one day prior to the Pricing Date. "Principal Place of Business" means, with respect to the Seller, the location of the Seller's principal place of business and chief executive office located at 595 S. San Jacinto Ave, San Jacinto, CA 92583. "Proposition IA Receivable" has the meaning set forth in Section 2(a). "Purchase Price" means an amount equal to the Initial Amount. "Rating Agency" means any nationally recognized rating agency then providing or maintaining a rating on the Bonds at the request of the Purchaser. "Rating Agency Confirmation" means written confirmation from each Rating Agency that any proposed action will not, in and of itself, cause the Rating Agency to lower, suspend or withdraw the rating then assigned by such Rating Agency to any Bonds. "Resolution" means the resolution adopted by the City Council approving the sale of the Proposition 1A Receivable. "State" means the State of California. "Transaction Counsel" means Orrick, Herrington & Sutcliffe LLP. "Transaction Documents" mean this Agreement, the Bill of Sale, the Indenture, the Bonds and the Irrevocable Instructions For Disbursement of Proposition 1A Receivable of City of San Jacinto, dated as of the Closing Date. EXHIBIT B1 OPINION OF COUNSEL to CITY OF SAN JACINTO Dated: Pricing Date California Statewide Communities Development Authority Sacramento, California Wells Fargo Bank, National Association Los Angeles, California Re: Sale of Proposition lA Receivable Ladies & Gentlemen: [I have/This Office has] acted as counsel for the City of San Jacinto (the "Seller") in connection with the adoption of that certain resolution (the "Resolution") of the City Council of the Seller (the "Governing Body") pursuant to which the Seller authorized the sale to the California Statewide Communities Development Authority (the "Purchaser") of the Seller's "Proposition 1A Receivable", as defined in and pursuant to the Purchase and Sale Agreement dated as of November 1, 2009 (the "Sale Agreement") between the Seller and the Purchaser. In connection with these transactions, the Seller has issued certain Irrevocable Instructions For Disbursement of the Seller's Proposition lA Receivable to the Controller of the State of California (the "Disbursement Instructions") and a Bill of Sale and Bringdown Certificate of the Seller (the "Bill of Sale" and, collectively with the Sale Agreement and the Disbursement Instructions, the "Seller Documents"). Unless the context otherwise requires, capitalized terms used but not otherwise defined herein shall have the meanings given to such terms in the Sale Agreement. [I/We] have examined and are familiar with the Seller Documents and with those documents relating to the existence, organization, and operation of the Seller, the adoption of the Resolution, and the execution of the Seller Documents, and have satisfied ourselves as to such other matters as [Uwe] deem necessary in order to render the following opinions. As to paragraphs numbered 3 and 4 below, [Uwe] have relied as to factual matters on the representations and warranties of the Seller contained in the Sale Agreement. Based upon the foregoing, and subject to the limitations and qualifications set forth herein, [Uwe] are of the opinion that: 1. The Seller is a local agency, within the meaning of Section 6585(0 of the California Government Code. The Governing Body is the governing body of the Seller. 2. The Resolution was duly adopted at a meeting of the Governing Body, which was called and held pursuant to law and with all public notice required by law, and at which a quorum was present and acting throughout, and the Resolution is in full force and effect and has not been modified, amended or rescinded since the date of its adoption. 3. To the best of [my/our] knowledge, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, is pending or threatened in any way against the Seller (i) affecting the existence of the Seller or the titles of its Governing Body members or officers to their respective offices; (ii) seeking to restrain or to enjoin the sale of the Proposition lA Receivable or to direct the application of the proceeds of the sale thereof, or materially adversely affecting the sale of the Proposition lA Receivable; (iii) in any way contesting or affecting the validity or enforceability of the Resolution, Seller Documents or any other applicable agreements or any action of the Seller contemplated by any of said documents; or (iv) in any way contesting the powers of the Seller or its authority with respect to the Resolution or the Seller Documents or any other applicable agreement, or any action on the part of the Seller contemplated by any of said documents. 4. To the best of [my/our] knowledge, prior to the sale of the Proposition 1 A Receivable to the Purchaser, the Seller had not sold, transferred, assigned, set over or otherwise conveyed any right, title or interest of any kind whatsoever in all or any portion of the Seller's Proposition 1A Receivable, nor had the Seller created, or permitted the creation of, any Lien thereon. 5. The Seller has duly authorized and executed the Seller Documents and, assuming the due authorization execution and delivery of the Sale Agreement by the Purchaser, each Seller Document will be legal, valid and binding against the Seller and enforceable against the Seller in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or laws relating to or affecting creditors' rights, and the application of equitable principles and the exercise of judicial discretion in appropriate areas. No opinion is expressed concerning the obligation or ability of the State of California to make any payment of the Proposition 1A Receivable pursuant to Section 100.06 of the Revenue and Taxation Code and Section 25.5 of Article XIII of the California Constitution, nor is any opinion expressed with respect to the ability of the State to enact any change in the law applicable to the Seller Documents (including, without limitation, Section 100.06 of the Revenue and Taxation Code or Section 6588.6 of the Government Code). Furthermore, [I/we] express no opinion as to the value of the Proposition lA Receivable or as to any legal or equitable remedies that may be available to any person should the Proposition lA Receivable have little or no value. No opinion is expressed with respect to the sale of Bonds by the Purchaser. The legal opinion set forth herein is intended for the information solely of the addressees hereof and for the purposes contemplated by the Sale Agreement. The addressees may not rely on it in connection with any transactions other than those described herein, and it is not to be relied upon by any other person or entity, or for any other purpose, or quoted as a whole or in part, or otherwise referred to, in any document, or to be filed with any governmental or administrative agency other than the Purchaser or with any other person or entity for any purpose without [my/our] prior written consent. In addition to the addressees hereof, each Credit Enhancer and the underwriters of the Bonds may rely upon this legal opinion as if it were addressed to them. [I/We] do not undertake to advise you of matters that may come to [my/our] attention subsequent to the date hereof that may affect the opinions expressed herein. Very truly yours, By: Seller's Counsel EXHIBIT B2 OPINION OF COUNSEL to CITY OF SAN JACINTO Dated: Closing Date California Statewide Communities Development Authority Sacramento, California Wells Fargo Bank, National Association Los Angeles, California Re: Sale of Proposition lA Receivable (Bringdown Opinion) Ladies & Gentlemen: Pursuant to that certain Purchase and Sale Agreement dated as of November 1, 2009 (the "Sale Agreement") between the City of San Jacinto (the "Seller") and the California Statewide Communities Development Authority (the "Purchaser"), this Office delivered an opinion (the "Opinion") dated the Pricing Date as counsel for the Seller in connection with the sale of the Seller's Proposition 1A Receivable (as defined in the Sale Agreement), the execution of documents related thereto and certain other related matters. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Sale Agreement. I confirm that you may continue to rely upon the Opinion as if it were dated as of the date hereof. Each Credit Enhancer and the underwriters of the Bonds may rely upon this legal opinion as if it were addressed to them. This letter is delivered to you pursuant to Section 2(b)(ii)(1) of the Sale Agreement. Very truly yours, By: Seller's Counsel EXHIBIT Cl CLERK'S CERTIFICATE CERTIFICATE OF THE CITY CLERK OF CITY OF SAN JACINTO, CALIFORNIA Dated: Pricing Date The undersigned City Clerk of the City of San Jacinto (the "Seller"), a local agency of the State of California within the meaning of Section 6585(0 of the California Government Code, does hereby certify that the foregoing is a full, true and correct copy of Resolution No. duly adopted at a regular meeting of the City Council of said Seller duly and legally held at the regular meeting place thereof on the day of 2009, of which meeting all of the members of said City Council had due notice and at which a quorum was present and acting throughout, and that at said meeting said resolution was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: I do hereby further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office and that said resolution is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes and that said resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect. I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at a location in the [ City / Town / County ] of San Jacinto, California freely accessible to members of the public, and a brief general description of said resolution appeared on said agenda. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Purchase and Sale Agreement, dated as of November 1, 2009, between the Seller and the California Statewide Communities Development Authority. WITNESS by my hand as of the Pricing Date. By: City Clerk of the City of San Jacinto, California EXHIBIT C2 SELLER CERTIFICATE SELLER CERTIFICATE Dated: Pricing Date We, the undersigned officers of the City of San Jacinto (the "Seller"), a local agency of the State of California within the meaning of Section 6585(f) of the California Government Code, holding the respective offices herein below set opposite our signatures, do hereby certify that on the date hereof the following documents (the "Seller Transaction Documents") were officially executed and delivered by the Authorized Officer or Officers whose names appear on the executed copies thereof, to wit: Document 1. Purchase and Sale Agreement, dated as of November 1, 2009 (the "Sale Agreement"), between the Seller and the California Statewide Communities Development Authority (the "Purchaser"). 2. Irrevocable Instructions For Disbursement of Seller's Proposition lA Receivable to the Controller of the State of California, dated the Closing Date. 3. Bill of Sale, dated the Closing Date. Capitalized terms used herein and not defined herein shall have the meaning given such terms in the Sale Agreement. We further certify as follows: 1. At the time of signing the Seller Transaction Documents and the other documents and opinions related thereto, we held said offices, respectively, and we now hold the same. 2. The representations and warranties of the Seller contained in the Seller Transaction Documents are true and correct as of the date hereof in all material respects. 3. The City Council duly adopted its resolution (the "Resolution") approving the sale of the Seller's Proposition 1A Receivable at a meeting of the City Council which was duly called and held pursuant to law with all public notice required by law and at which a quorum was present and acting when the Resolution was adopted, and such Resolution is in full force and effect and has not been amended, modified, supplemented or rescinded. Name, Official Title Signature Barry McClellan, City Manager Tim HuIts, Assistant City Manager Dale Stubblefield, Mayor I HEREBY CERTIFY that the signatures of the officers named above are genuine. Dated: Pricing Date By: City Clerk of the City of San Jacinto, California EXHIBIT C3 BILL OF SALE AND BRINGDOWN CERTIFICATE BILL OF SALE AND BRINGDOWN CERTIFICATE Pursuant to terms and conditions of the Purchase and Sale Agreement (the "Sale Agreement"), dated as of November 1, 2009, between the undersigned (the "Seller") and the California Statewide Communities Development Authority (the "Purchaser"), and in consideration of the obligation of the Purchaser to pay and deliver to the Seller the Purchase Price (as defined in the Sale Agreement), in two equal installment payments to be made on January 15, 2010, and May 3, 2010 (collectively, the "Payment Dates"), the Seller does hereby (a) transfer, grant, bargain, sell, assign, convey, set over and deliver to the Purchaser, absolutely and not as collateral security, without recourse except as expressly provided in the Sale Agreement, the Proposition 1A Receivable as defined in the Sale Agreement (the "Proposition 1A Receivable"), and (b) assign to the Purchaser, to the extent permitted by law (as to which no representation is made), all present or future rights, if any, of the Seller to enforce or cause the enforcement of payment of the Proposition lA Receivable pursuant to the Act and other applicable law. Such transfer, grant, bargain, sale, assignment, conveyance, set over and delivery is hereby expressly stated to be a sale and, pursuant to Section 6588.6(b) of the California Government Code, shall be treated as an absolute sale and transfer of the Proposition 1A Receivable, and not as a grant of a security interest by the Seller to secure a borrowing. Seller specifically disclaims any right to rescind the Agreement, or to assert that title to the Proposition 1A Receivable has not passed to the Purchaser, should Purchaser fail to make the installment payments in the requisite amounts on the Payment Dates. The Seller hereby certifies that the representations and warranties of the Seller set forth in the Certificate of the City Clerk dated the Pricing Date, the Seller Certificate dated the Pricing Date and in the Transaction Documents to which the Seller is a party are true and correct in all material respects as of the date hereof (except for such representations and warranties made as of a specified date, which are true and correct as of such date). Capitalized terms used but not defined herein shall have the meanings given to such terms in the Sale Agreement. Dated: Closing Date CITY OF SAN JACINTO By: Authorized Officer EXHIBIT D IRREVOCABLE INSTRUCTIONS TO CONTROLLER IRREVOCABLE INSTRUCTIONS FOR DISBURSEMENT OF PROPOSITION 1A RECEIVABLE OF CITY OF SAN JACINTO Dated: Closing Date Office of the Controller State of California P.O. Box 942850 Sacramento, California 94250-5872 Re: Notice of Sale of Proposition lA Receivable by the City of San Jacinto and Wiring Instructions Information Form Dear Sir or Madam: Pursuant to Section 6588.6(c) of the California Government Code, City of San Jacinto (the "Seller") hereby notifies you of the sale by Seller, effective as of the date of these instructions written above, of all right, title and interest of the Seller in and to the "Proposition lA Receivable" as defined in Section 6585(g) of the California Government Code (the "Proposition lA Receivable"), namely, the right to payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(1)(B)(iii) of Article XIII of the California Constitution and Section 100.06 of the California Revenue and Taxation Code. By resolution, the Seller's City Council authorized the sale of the Proposition 1A Receivable to the California Statewide Communities Development Authority (the "Purchaser") pursuant to a Purchase and Sale Agreement, dated as of November 1, 2009 (the "Purchase and Sale Agreement") and a Bill of Sale, dated the Closing Date (as defined in the Purchase and Sale Agreement). The Proposition lA Receivable has been pledged and assigned by the Purchaser pursuant to an Indenture, dated as of November 1, 2009 (the "Indenture") between the Purchaser and Wells Fargo Bank, National Association, as Trustee (the "Trustee"). The Seller hereby irrevocably requests and directs that, commencing as of the date of these instructions written above, all payments of the Proposition IA Receivable (and documentation related thereto) be made directly to Wells Fargo Bank, National Association, as Trustee, in accordance with the wire instructions and bank routing information set forth below. Please note that the sale of the Proposition 1A Receivable by the Seller is irrevocable and that: (i) the Seller has no power to revoke or amend these instructions at any time; (ii) the Purchaser shall have the power to revoke or amend these instructions only if there are no notes of the Purchaser outstanding under the Indenture and the Indenture has been discharged; and (iii) so long as the Indenture has not been discharged, these instructions cannot be revoked or amended by the Purchaser without the consent of the Trustee. Should D-1 the Purchaser, however, deliver a written notice to the Office of the Controller stating that: (a) the Seller failed to meet the requirements set forth in the Purchase and Sale Agreement; (b) the Purchaser has not waived such requirements; and (c) the Purchaser has not purchased the Proposition 1A Receivable as a result of the circumstances described in (a) and (b) above, then these instructions shall be automatically rescinded and the Seller shall again be entitled to receive all payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(1)(B)(1ii) of Article XIH of the California Constitution and Section 100.06 of the California Revenue and Taxation Code. Bank Name: Bank ABA Routing #: Bank Account #: Bank Account Name: Further Credit To: Bank Address: Bank Telephone #: Bank Contact Person: Wells Fargo Bank, NA. 121000248 0001038377 Corporate Trust Clearing CSCDA Proposition lA Bonds 707 Wilshire Blvd., 17th Floor MAC E2818-176 Los Angeles, CA 90017 (213) 614-3353 Robert Schneider Please do not hesitate to call the undersigned if you have any questions regarding this transaction. Thank you for your assistance in this matter. Very truly yours, CITY OF SAN JACINTO By: Authorized Officer EXHIBIT E ESCROW INSTRUCTION LETTER ESCROW INSTRUCTION LETTER , 2009 California Statewide Communities Development Authority 1100 K Street Sacramento, CA 95814 Re: Proposition lA Receivable Financing Dear Sir or Madam: The City of San Jacinto (the "Seller") hereby notifies you of its agreement to participate in the California Statewide Communities Development Authority Proposition lA Receivable Financing. By adoption of a resolution (the "Resolution") authorizing the sale of its Proposition 1A Receivable, the Seller's City Council has agreed to sell to the California Statewide Communities Development Authority (the "Purchaser"), for a purchase price that meets the conditions set forth in the Resolution, all of its right, title and interest in the Proposition 1A Receivable. Enclosed herewith are the following documents which have been duly approved and executed by the Seller and which are to be held in escrow by Orrick, Herrington & Sutcliffe LLP, as transaction counsel ("Transaction Counsel"), as instructed below: certified copy of the Resolution, together with a certificate of the City Clerk, dated the Pricing Date; 2. the Seller Certificate, dated the Pricing Date; 3. the Opinion of Seller's Counsel, dated the Pricing Date; 4. the Opinion of Seller's Counsel (bringdown opinion), dated the Closing Date; 5. the Purchase and Sale Agreement, dated as of November 1, 2009; 6. the Bill of Sale and Bringdown Certificate, dated the Closing Date; and 7. the Irrevocable Instructions to Controller, dated the Closing Date. The foregoing documents are to be held in escrow by Transaction Counsel and shall be delivered on the Closing Date (as defined in the Purchase and Sale Agreement), provided that such Closing Date occurs on or before December 31, 2009. E-1 Should (i) the Closing Date not occur on or before December 31, 2009, or (ii) Transaction Counsel receive prior to the Closing Date written notification from Seller or Seller's Counsel stating, respectively and in good faith, that the representations made in the Seller's Certificate are not true and accurate, or the opinions set forth in the Opinion of Seller's Counsel are not valid, in each case as of the Closing Date and provided that the Purchaser may, in its sole discretion, choose to waive receipt of such representations or opinions, then this agreement shall terminate and Transaction Counsel shall destroy all of the enclosed documents. Very truly yours, CITY OF SAN JACINTO By: Authorized Officer Enclosures cc: Orrick, Herrington & Sutcliffe LLP CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY REVENUE BONDS (STATE OF CALIFORNIA PROPOSITION IA RECEIVABLES PROGRAM) SERIES 2009 CERTIFICATE OF THE SELLER RE: COMPONENTS OF PROPOSITION lA RECEIVABLES The undersigned, an Authorized Officer of the City of San Jacinto (the "Seller") hereby certifies with respect to that certain Purchase and Sale Agreement, dated as of November I, 2009 (the "Agreement"), by and between the Seller and the California Statewide Communities Development Authority (the "Purchaser") as follows (all capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Agreement): I. The components (the "Components") of the Proposition IA Receivab e listed in Schedule I, attached hereto and incorporated herein by reference, belong to the Seller; 2. The Components are listed as they appear on the certification of the County Auditor pursuant to Section 6588.6(e) of the Government Code; 3. By entering into the Agreement, the Seller is selling the Proposition IA Receivable, including all Components thereof listed in Schedule I; 4. The Seller acknowledges that the Purchase Price of the Proposition IA Receivable will be equal to aggregate the Initial Amounts of each Component as each such Component is separately certified by the County Auditor; and 5. The funds or other entities listed as Components in Schedule I (other than the Seller itself) are not independent legal entities with the power to enter into contracts. Dated: Pricing Date CITY OF SAN JACINTO By: Authorized Officer Component Certificate of City of San Jacinto ACKNOWLEDGEMENT OF SELLER'S COUNSEL Based on such inquiry as the undersigned determined to be necessary of the county office responsible for the preparation of the report given pursuant to Government Code Section 6588.6(e), and in reliance on such information as is provided in the report and otherwise by the County as to the identity and nature of the accounting entities shown, as Counsel to the Seller the undersigned hereby acknowledges and confirms that the statements in paragraphs 1 and 5 of this certificate are legally correct. This acknowledgement and confirmation is subject to the matters referred to in the Opinion of Counsel to the City of San Jacinto dated as of the Pricing Date and executed by the undersigned, including, but not limited to, the limitations expressed in the second to last paragraph of that Opinion. By: Seller's Counsel 2 Component Certificate of City of San Jacinto SCHEDULE I COMPONENTS OF PROPOSITION IA RECEIVABLE Names of Components for City of San Jacinto Schedule I Component Certificate of City of San Jacinto AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk C c--- Enclosure: Staff Report for [CC or RDA] meeting of //— (date) E.,et ge-cx (name — brief description) Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) VCity Departments Item Attachments include (this needs to match the attachment list in the Staff Report: A. B. C. Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting /Vie C4G-t DATE: /0 721 47 CA4 [Name or Initials], [Title] S:\City Clerk\CC RPT 06\AGENDA Transmittal Form.doc AGENDA ITEM November 5, 2009 TO: FROM: SUBJECT: The Honorable Mayor and Members of the City Council Barry McClellan, City Manager Award of Professional Services Contract to Recruit for City Manager RECOMMENDATION: Staff recommends that the City Council, by motion, select an Executive Recruiter and award a contract for same. BACKGROUND: Consequent to my decision to retire on December 31, recruitment for city manager is necessary. Typically, city councils retain experienced executive search firms that specialize in city manager and department head recruitments to facilitate the process. These firms handle the candidate profile development, brochures, advertising, recruitment, preliminary interviews with recommendations of candidates for council to interview, facilitation of council's final interview process and selection, and subsequent comprehensive qualification (background, credentials, etc.) of the selected candidate. DISCUSSION: We have requested proposals from the most qualified and experienced public sector executive recruiters in California. These will be provided to the council under separate cover so that council may have adequate time to review and to ask any questions of me about the proposals and/or the process. I have conducted a preliminary review of the proposals that were due today (October 27), to which all four firms responded in a timely manner. I will conduct an in- depth review of the proposals prior to this meeting and will be ready to answer questions and also to provide a recommendation if so desired by the Council. Page 1 of 2 ALTERNATIVES: 1. Select the firm best suited to perform this recruitment for the city. 2. Determine to interview one or more of the firms prior to award. 3. Request more proposals. 4. Provide further direction to staff. FISCAL IMPACT: Upon award, an appropriation from the General Fund Contingency Reserve by council will be necessary. The estimated range of the appropriation is $20,000 to $25,000. Page 2 of 2 Enclosure: Staff Report for Appg,)p /2- //47/u, (name — brief description) FOtt 1.J au DIr4 6 Consent Calendar Item C C_ [CC or RDA] meeting of (date) r- 6 Oo Fat_ 14 IA. ir201-- 5 IP AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) L.-City Departments Item Attachments include (this needs to match the attachment list in the Staff Report: A. 'Pek cD/zA PP4S OF- .eLp 1-i 4 B. C. Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting DATE: 11)- - 7 )/9 C [Klame or Initials], [Title] S:\City Clerk\CC RPT 06\AGENDA Transmittal Fonn.doc Page 1 of 2 AGENDA ITEM 5. November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Barry McClellan, City Manag SUBJECT: Request for Appropriation of $15,000 from Community Amenities Development Impact Fee Fund to Purchase and Install 105mm Replica Howitzer at Veterans Memorial at Druding Park RECOMMENDATION: Staff recommends that the City Council, by motion, appropriate $15,000 from the Community Amenities Development Impact Fee (DIF) Fund to purchase and install a replica 105mm Howitzer cannon. BACKGROUND: Over the past several years, the City Council has developed Druding Park into a Veterans Memorial with the placement of equipment representative of the military branches of service, memorial plaques and monuments to honor all veterans and active duty military service people. All that remains to complete the memorial is the placement of a symbol of the Marine Corps to represent their service to the United States. DISCUSSION: For over three years, the Special Events Committee of the Council has been searching for a Marine Howitzer Cannon to place in Druding Park to complement the U.S. Army M-60 tank and the monuments to the Air Force, Navy and Coast Guard. Many contacts have been made with military museums, Marine Corp stations and retired Marine officers to no avail. Also, the city has had an application into the military clearance facility that handles all requests for decommissioned equipment for public purposes for more than two years. The Council Special Events Committee has found a manufacturer of full scale, museum quality replicas of military weapons and equipment. This company manufactures a Howitzer that sells for $8500. Shipping is estimated to be less than $2000. Also, a pad and sidewalk for the display will need to be constructed for the unit. Staff estimates a total cost for the project not to exceed $15,000. The addition of this museum quality piece to our Veterans Memorial at Druding Park will be the crowning piece of that beautiful park. ALTERNATIVES: 1. Approve the appropriation request of $15,000. 2. Approve an appropriation of $10,500 and defer the sidewalks, etc. (Not recommended) 3. Do not approve the appropriation. (Not recommended) FISCAL IMPACT: This action will reduce the Community Amenities DIE Fund by $15,000. Adequate fund balance exists to make this appropriation. ATTACHMENTS: Photograph of replica 105mm Howitzer cannon displayed at War Bird Museum in San Diego. Page 2 of 2 ' AGENDA ITEM 5. 9 November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Asst. City Manager and City Attorney SUBJECT: Ordinance No. 09-24 — Introduction and first reading regarding an Amendment to San Jacinto Municipal Code section 16.24.140 re Subdivision Improvement Agreement Security RECOMMENDATION: Consider and approve Ordinance No. 09-24 to amend the San Jacinto Municipal Code section 1624.140, subdivision (a) - Security. DISCUSSION: Section 16.24.140 of the San Jacinto Municipal Code ("Code"), deals with the security required by subdividers who wish to enter into a subdivision improvement agreement in order to record their final maps prior to completing the required public improvements. However, that Code section currently does not specify exactly what forms of security are acceptable. Government Code section 66499, subdivision (a), subsection (5) (containing the Subdivision Map Act) provides that a city may specify by ordinance what forms of security are acceptable. By far, the most common security is a traditional surety bond. However, the Act also permits the following types of security: • A deposit, either with the city or a responsible escrow agent or trust company, at the option of the city, of money or negotiable bonds of the kind approved for securing deposits of public moneys. • An instrument of credit from an agency of the state, federal, or local government when any agency of the state, federal, or local government provides at least 20 percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment, or a letter of credit issued by such a financial institution. • A lien upon the property to be divided, created by contract between the owner and the city, if the city finds that it would not be in the public interest to require the installation of the required improvement sooner than two years after the recordation of the map. Page 1 of 2 • Any form of security, including security interests in real property, which is acceptable to the city and specified by ordinance thereof. As a result of the severe economic downturn, especially in the housing market, the City of San Jacinto (along with a number of other jurisdictions) has been approached by subdividers seeking relief from the cost of bond premiums associated with their subdivision improvement agreements. Therefore, at this time, staff is recommending that Code section 16.24.140, subdivision (a) be amended to specify the forms of security that are acceptable to City, including interests in real property such as deeds of trust. Prior to allowing any subdividers to provide or substitute security other than traditional surety bonds, City staff will return to City Council for authorization to do so. ALTERNATIVES: 1) Consider and introduce Ordinance No. 09-24, as proposed (recommended). 2) Continue or take no action. FISCAL IMPACT: The Amendment would result in no expenditure or fiscal impact to the City. ATTACHMENTS: Ordinance No. 09-24 Page 2 of 2 AGENDA TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk C Enclosure: Staff Report for Meeting of [CC or RDA] CCD . (name — brief description) Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) City Departments Item - Attachments include: (this needs to match the attachment in list in the Staff Report) A. B. C. D. Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of Person that will be presenting item at the meeting DATE: [Name], [Title] 2_ [date] S:\Special Districts\Forms\Agenda - CC Transmittal Form.doc AGENDA ITEM +•l November 5, 2009 TO: FROM: SUBJECT: The Honorable Mayor and Members of the City Council Special Tax Consultant and City Attorney Proposed Resolution No. Certifying the Results of an Election and Adding Property into Community Facilities District No. 2003-1, Annexation No. 53 RECOMMENDATION: Staff recommends that the City Council, by motion approve and adopt Resolution No. certifying the results of an election and adding property (known as KZ Development Company — Assessor's Parcel Nos. 432-270-021,432-270-022 and 432-270- 023) to Community Facilities District No. 2003-1, Annexation No. 53. BACKGROUND: The City Council and Planning Commission have identified the need for additional funding sources for police protection and fire protection and suppression services, especially those services that are created by new development within the City. In response to the need for additional funding for such services, the City Council formed Community Facilities District 2003-1 (the "District') and the levy of special taxes therein. On November 6, 2003, the City Council called an election of the landowners affected by the formation of the District and the levy of special taxes. The landowners approved the formation of the District and levy of special taxes with over a two-thirds majority vote of the voters voting. On June 3, 2004, the City Council approved the Future Annexation Area and a process to expedite the annexation of territory into the District. Several developers are developing certain real property within the boundaries of the Future Annexation Area. As a condition to receiving the building permits from the City, most developers must annex their territory into the District. Garfield Beach CVS, LLC, a California limited liability company, and SRC, L.P., a California limited partnership, (the "Developers") now desire to be annexed into the District in order to obtain building permits. JUSTIFICATION: The adoption of the resolution is required to annex the territory into the District. Approvals City Manager: Page 1 of 2 0,S Finance Directc _. BUDGETARY IMPACT: The annexation of the Developers' property into the District will have a beneficial impact to the City's budget in that, upon implementation of the proposed annexation, would assist in the funding of police and fire services that would otherwise come from the City's general fund. ATTACHMENTS: Resolution No. Page 2 of 2 STATE OF CALIFORNIA ) RESOLUTION NO. COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, CERTIFYING THE RESULTS OF AN ELECTION AND ADDING PROPERTY TO COMMUNITY FACILITIES DISTRICT NO. 2003-1 (CFD 2003-1, ANNEXATION NO. 53) WHEREAS, the City Council of the City of San Jacinto (the "City Council"), has previously formed a Community Facilities District pursuant to the provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, said Article 3.5 thereof. The existing Community Facilities District being designated as COMMUNITY FACILITIES DISTRICT NO. 2003-1 (the "CFD No. 2003-1"); and, WHEREAS, the City Council has also established a procedure to allow and provide for future annexations to CFD No. 2003-1 and the territory proposed to be so annexed in the future was designated as COMMUNITY FACILITIES DISTRICT NO. 2003-1, FUTURE ANNEXATION AREA (the "Future Annexation Area"); and WHEREAS, at this time the unanimous consent to the annexation of certain territory within the Future Annexation Area to CFD No. 2003-1 has been received from the property owner or owners of such territory, and such territory has been designated as ANNEXATION NO. 53 (the "Annexed Area"); and WHEREAS, less than twelve (12) registered voters have resided within the territory of Annexed Area for each of the ninety (90) days preceding November 5, 2009, therefore, pursuant to the Act the qualified electors of the Annexed Area shall be the "landowners" of such Annexed Area as such term is defined in Government Code Section 53317(f) and each such landowner who is the owner of record as of January 8, 2009, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within such Annexed Area; and WHEREAS, the time limit specified by the Act for conducting an election to submit the levy of the special taxes on the property within the Annexed Area to the qualified electors of the Annexed Area and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the Annexed Area; and WHEREAS, the City Clerk of the City of San Jacinto has caused ballots to be distributed to the qualified electors of the Annexed Area, has received and canvassed such ballots and made a report to the City Council regarding the results of Page 1 of 3 such canvas, a copy of which is attached as Exhibit A hereto and incorporated herein by this reference; and WHEREAS, at this time the measure voted upon and such measure did receive the favorable 2/3's vote of the qualified electors, and the City Council desires to declare the results of the election; and WHEREAS, a map showing the Annexed Area and designated as Annexation No. 53 (the "Annexation Map"), a copy of which is attached as Exhibit B hereto and incorporated herein by this reference, and a list of Assessor Parcel Numbers and landowners, a copy of which is attached as Exhibit C hereto and incorporated herein by this reference, has been submitted to the City Council. NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto, that: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Findings. This City Council does hereby determine as follows: A. The unanimous consent to the annexation of the Annexed Area to CFD No. 2003-1 has been given by all of the owners of the Annexed Area and such consent shall be kept on file in the Office of the City Clerk. B. Less than twelve (12) registered voters have resided within the territory of Annexed Area for each of the ninety (90) days preceding November 5, 2009, therefore, pursuant to the Act the qualified electors of the Annexed Area shall be the "landowners" of such Annexed Area as such term is defined in Government Code Section 53317(f). C. The qualified electors of the Annexed Area have unanimously voted in favor of the levy of special taxes within the Annexed Area upon its annexation to CFD No. 2003-1. SECTION 3. Annexed Area. The boundaries and parcels of territory within the Annexed Area and on which special taxes will be levied in order to pay for the costs and expenses of authorized public facilities are shown on the Annexation Map as submitted to and hereby approved by this City Council. SECTION 4. Declaration Of Annexation. The City Council does hereby determine and declare that the Annexed Area is now added to and becomes a part of CFD No. 2003-1. The City Council, acting as the City Council of CFD No. 2003-1, is hereby empowered to levy the authorized special tax within the Annexed Area. SECTION 5. Notice. Immediately upon adoption of this Resolution, notice shall be given as follows: Page 2 of 3 A. A copy of the annexation map as approved shall be filed in the Office of the County Recorder no later than fifteen (15) days after the date of adoption of this Resolution. B. An Amendment to the Notice of Special Tax Lien (Notice of Annexation) shall be recorded in the Office of the County Recorder no later than fifteen (15) days after the date of adoption of this Resolution. APPROVED, SIGNED and ADOPTED this 5 th day of November, 2009, by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto By: Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk City of San Jacinto APPROVED AS TO FORM: City Attorney, City of San Jacinto Best, Best & Krieger, LLP. Page 3 of 3 Exhibit A Certificate of Election Official and Statement of Votes Cast STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF SAN JACINTO The undersigned, ELECTION OFFICIAL OF THE CITY OF SAN JACINTO, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the CITY OF SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2003-1 SPECIAL ELECTION ANNEXATION NO. 53 in the City, held on November 5, 2009. I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in the area proposed to be annexed to Community Facilities District No. 2003-1 of the City of San Jacinto for or against the Measure are full, true and correct. VOTES CAST ON PROPOSITION YES NO WITNESS my hand this day of November, 2009 Barry McClellan, City Clerk City of San Jacinto Exhibit B Annexation Map Page B-1 FRUITVAILE AVE. SHEET 1 OF 2 ANNEXATION MAP NO. 53 TO CITY OF SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2003-1 COUNTY OF RIVERSIDE STATE OF CALIFORNIA Reference is hereby made to that certain map entitled "Amended Boundaries of City of San Jacinto Community Facilities District No. 2003-1, County of Riverside, State of California," filed the 22nd day of December, 2003, at the hour of 8 o'clock a.m. in Book 55 at pages 58-59, and as instrument number 2003-995886 in the office of the County Recorder of the County of Riverside, State of California, which this Annexation Map affects. (1) Filed in the office of the City Clerk of the City of San Jacinto this day of , 2009, Prepared by David Taussig & Associates, Inc. Barry McClellan, San Jacinto City Clerk (2) I hereby certify that the within map showing the proposed boundaries of Annexation No. 53 to City of San Jacinto Community Facilities District No. 2003-1, Riverside County, State of California, was approved by the City Council at a regular meeting thereof, held on this day of , 2009, by its Resolution No. Barry McClellan, San Jacinto City Clerk ) Filed this day of , 2009, at the hour of o'clock in Book of Maps of Assessment and Community Facilities Districts at page and as Instrument No. in the office of the County Recorder of Riverside County, State of California. Larry W. Ward Assessor-County Clerk-Recorder of Riverside County By Deputy Fee Exempt recording requested, per CA Government Code §6103 COTTONWOOD AVENUE Reference is hereby made to the Assessor maps of the County of Riverside for a description of the lines and dimensions of each lot and parcel. LEGEND Boundaries of Annexation No. 53 • "111-77 to City of San Jacinto Community Facilities District No. 2003-1 Assessor Parcel Line 432-270-02n Assessor Parcel Number Prepared by David Toussig & Associates, Inc. SHEET 2 OF 2 ANNEXATION MAP NO. 53 TO CITY OF SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2003-1 COUNTY OF RIVERSIDE STATE OF CALIFORNIA Sqn J. ;in o Arinexation No. t C. 2003- Map Project Guide Boundary Map Annexation No. 63 Sheet [:umber Assessor Parcel Number(s) Tract Number Project Name Land Owner / Developer 2 432-270-021 PM 35888-2 432-270-022 SRC, L.P. / KZ DevCo 2 432-270-023 PM 35888-1 CVS Garfield Beach CVS LLC / Pharmacy KZ DevCo Note: This map project guide is included to help identify properties within the CFD, but this guide is not intended for County of Riverside recordation with the Annexation map it refers to. Exhibit C List of Properties to be Annexed APN(S) Landowners 432-270-021 SRC, L.P. 432-270-022 SRC, L.P. 432-270-023 Garfield Beach CVS, LLC Page C-1 David Taussig & Associates, Inc. 09/25/2009 CITY OF SAN JACINTO CFD NO. 2003-1, ANNEXATION NO. 53 APN Acreage [1] Owner Mailing Address City State Zip Code 432-270-021 1.50 SRC, L.P. (Attention: Tom Wilhelm or Mark Zimmerman) [2] 18818 Teller Avenue, Suite 100 Irvine CA 92612-1679 432-270-022 1.23 SRC, L,P. (Attention: Tom Wilhelm or Mark Zimmerman) [2] 18818 Teller Avenue, Suite 100 Irvine CA 92612-1679 432-270-023 2.41 Garfield Beach CVS LLC (Kristine Donabedian) [3] One CVS Drive Woonsocket RI 02895 [1] Gross acreage information based on Parcel Map Nos. 35888-1 and 35888-2. [2] Ownership information based on title report dated 8/13/09 provided by Stewart Title of California, Inc. [3] Ownership information based on title report dated 7/1/09 provided by Chicago Title Company. KACLIENTSZSan Jacinto \Mello \Police&Fire CFMannex\Annex 53 \OVVNERS_ANNEX53.123 RATE AND METHOD OF APPORTION1VIE:-T FOR COMMUNITY FACILITIES DISTRICT NO. 2( -1 OF THE CITY OF SAN JACINTO A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in Community Facilities District No. 2003-1 of the City of San Jacinto ("CFD No. 2003-1") and collected each Fiscal Year commencing in Fiscal Year 2003-2004, in an amount determined by the Council through the application of the appropriate Special Tax for "Developed Property" as described below. All of the real property in CFD No. 2003-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2003-1: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 2003-1 or any designee thereof of complying with City or CFD No. 2003-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2003-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2003-1 for any other administrative purposes of CFD No. 2003-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Apartment Property" means any Assessor's Parcel of Residential Property that consists of a building or buildings comprised of attached residential units available for rental, but not purchase, by the general public and under common management. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. City of San Jacinto October 30, 2003 Community Facilities District No. 2003-1 Page 1 "CFD Administrator" means an official of the City, or designee thereof, responsible for calculating the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 20034" means Community Facilities District No. 2003-1 of the City. "City" means the City of San Jacinto. "Consumer Price Index" means the Consumer Price Index published by the U.S. Bureau of Labor Statistics for "All Urban Consumers" in the Los Angeles - Anaheim - Riverside Area, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the City of Los Angeles. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2003-1. "County" means the County of Riverside. "Developed Property" means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued after March 1, 2003 and as of March 1 of the previous Fiscal Year. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Floor Area" for any Non-Residential Property means the total square footage of the building(s) located on such property, measured from outside wall to outside wall, exclusive of overhangs, porches, patios, carports, or similar spaces attached to the building but generally open on at least two sides. The determination of Floor Area shall be made by reference to the building permit(s) issued for such Assessor's Parcel. "Land Use Class" means any of the classes listed in Table 1 and Table 2. "Maximum Special Tax" means the Maximum Special Tax A and/or Maximum Special Tax B, as applicable. "Maximum Special Tax A" means the Maximum Special Tax A, determined in accordance with Section C.1 below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Maximum Special Tax B" means the Maximum Special Tax B, determined in accordance with Section C.2 below, that can be levied on any Assessor's Parcel of Taxable Property on a one-time basis, at the time a building permit for new construction is issued for such Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels for which a building permit(s) was issued for a non-residential use. City of San Jacinto October 30, 2003 Community Facilities District No. 2003-1 Page 2 "Non-Retail Commercial/Industrial Property" means all Assessor's Parcels of Developed Property that are considered Non-Residential Property and that are not Retail Commercial Property. "Property Owner Association Property" means, for each Fiscal Year, any Assessor's Parcel within the boundaries of CFD No. 2003-1 that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year. "Proportionately" means that the ratio of the actual Special Tax A levy to the Maximum Special Tax A is equal for all Assessor's Parcels of Developed Property. "Public Property" means, for each Fiscal Year, (i) any property within the boundaries of CFD No. 2003-1 that was owned by or irrevocably offered for dedication to the federal government, the State, the City or any other public agency as of January 1 of the previous Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use; or (ii) any property within the boundaries of CFD No. 2003-1 that was encumbered, as of January 1 of the previous Fiscal Year, by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Retail Commercial Property" means all Assessor's Parcels of Non-Residential Property for which the building permit was issued for a retail sales tax generating use or which is being used primarily for a retail sales tax generating use, as determined by the CFD Administrator. However, if the land use of an Assessor's Parcel changes, and such Assessor's Parcel no longer generates retail sales tax, such Assessor's Parcel shall no longer be considered Retail Commercial Property and shall be classified and taxed according to its use, as determined by the CFD Administrator. "Single Family Property" means all Assessor's Parcels of Residential Property for which building permits have been issued for detached residential units, excluding Apartment Property. "Special Tax" means the Special Tax A and/or Special Tax B, as applicable. "Special Tax A" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax Requirement. "Special Tax B" means the one-time Special Tax which is paid directly to the City at the time a building permit for new construction is issued for an Assessor's Parcel of Taxable Property. City of San Jacinto October 30, 2003 Community Facilities District No. 2003-1 Page 3 "Special Tax Requirement" means that amount required in any Fiscal Year to meet the needs of CFD No. 2003-1 to: (i) pay for fire protection and suppression services (ii) pay for police protection services (iii) pay Administrative Expenses; less (iv) a credit for any funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2003-1 which are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGN I NT TO LA USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2003-1 shall be classified as Developed Property or Undeveloped Property and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Section C. Residential Property shall be assigned to Land Use Classes 1 and 2 based on the type of structure located on the Assessor's Parcel. Non-Retail Commercial/Industrial Property shall be assigned to Land Use Class 3. C. UM SPECIAL TAX RATE Special Tax A The Special Tax A is an annual Special Tax that shall be levied on Developed Property to fund the Special Tax Requirement. a. Developed Property Maximum Special Tax A The Maximum Special Tax A for Fiscal Year 2003-2004 for each Land Use Class is shown below in Table 1. City of San Jacinto October 30, 2003 Community Facilities District No. 2003-1 Page 4 TABLE 1 Maximum Special Tax A for Developed Property For Fiscal Year 2003-200- Community Facilities District No. 2003-1 Land Use Class Description Maximum Special Tax A 2 Single Family Property Apartment Property Non-Retail Commercial/Industrial Property $350 per unit $262.50 per unit $0.119 per SF of Floor Area Increase in the Maximum Special Tax A On each July I, commencing on July 1,2004, the Maximum Special Tax A shall be increased based on the percentage change in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year. (iii) Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. b. Undeveloped Property No Special Tax A shall be levied on Undeveloped Property. City of San Jacinto October 30, 2003 Community Facilities District No. 2003-1 Page 5 2. Special Tax B The Special Tax B is a one-time Special Tax that shall be paid directly to the City at the time a building permit for new construction is issued for an Assessor's Parcel of Taxable Property. a. Maximum Special Tax B The Maximum Special Tax B for Fiscal Year 2003-2004 for each Land Use Class is shown below in Table 2. TABLE 2 Maximum Special Tax B For Fiscal Year 2003-2004 Community Facilities District No. 2003-1 Land Use Class Description Maximum Flecial Tax B Single Family Property $600 per unit 2 Apartment Property $450 per unit Non-Retail Commercial/Industrial $0.204 per SF of Floor Area Property b. Increase in the Maximum Special Tax B On each July 1, commencing on July 1, 2004, the Maximum Special Tax B shall be increased based on the percentage change in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year. D. I TROD OF APPORTIONMENT OF THE SPECIAL TAX Special Tax A Commencing with Fiscal Year 2003-2004 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement. The Council shall levy the Special Tax A until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax A as needed to satisfy the Special Tax Requirement. City of San Jacinto October 30, 2003 Community Facilities District No. 2003-1 Page 6 Notwithstanding the above, under no circumstances will the Special Tax A levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2003-1. 2. Special Tax B Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall levy the Special Tax B on each Assessor's Parcel that is subject to the Special Tax B at 100% of the applicable Maximum Special Tax B. The Special Tax B shall be collected by the City at the time a building permit for new construction is issued for an Assessor's Parcel of Taxable Property. E. EXEMPTIONS No Special Tax shall be levied on Retail Commercial Property, Property Owner Association Property or Public Property. However, should an Assessor's Parcel no longer be classified as Retail Commercial Property, Property Owner Association Property or Public Property, its tax-exempt status will be revoked. F. APPEALS AND I144TERPRETATIGS Any landowner or resident may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for its disagreement with the CFD Administrator's determination. Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. City of San Jacinto October 30, 2003 Community Facilities District No. 2003-1 Page 7 G. MANNER OF COLLECTION The Special Tax A shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that in Fiscal Year 2004-05 and each Fiscal Year thereafter, CFD No. 2003-1 may directly bill the Special Tax A, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. Commencing in Fiscal Year 2003-04, the Special Tax B shall be paid directly to the City. H. TER OF SPECIAL TAX The Special Tax A and Special Tax B shall be levied as long as necessary to fund items (i) and (ii) of the Special Tax Requirement. KAClientsMan Jacinto\MelloWolice&Fire CFD\RMA\servicesrma9.doc City of San Jacinto Community Facilities District No. 2003-1 October 30, 2003 Page 8 AGENDA TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Enclosure: Staff Report for L ) Meeting of ( 1 - [date] [CC or RDA] (name — brief description) Consent Calendar Item —Public Hearing Item: Notice required yes no ----- Copy attached no Published Notices sent City Departments Item Attachments include: (this needs to match the attachment in list in the Staff Report.) (date(s)) (date(s) Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of Person that will be presenting item at the meeting DATE: ib ' ..[Name], [Title] S:\Special Districts Torms\Agenda - CC Transmittal Form.doc CLASSIFIED ADVE.RTLSANG Ad #: 10041059 3450 Fourteenth St. Riverside, CA 92501-3878 1-800-880-0345 951-684-1200 951-368-9018 Fax THE PRESS- Printed by: Tinajero, Maria ENTERPRISE at: 1:15 pm on: Wednesday, Oct 21, 2009 Ad Copy: NOTICE OF HEARING ON ANNEXATION OF PROPERTY TO LANDSCAPING, UGHTI NG AND PARK DISTRICT NO. 2 OF THE CITY OF SAN JA- CINTO (ANNEXATION NO. 84) AND ASSESS- MENTS PROPOSED TO BE LEVIED ON THAT PROPERTY FOR FISCAL YEAR 2010-11 92583 NOTICE IS HEREBY GIVEN that at 7:00 o'clock p.m. on November 5, 2009 in the San Jacinto Unified School District Board Room at 2045 South San Jacinto Avenue, San Jacinto, California, the City Council of the City of San Jacinto ('City) will conduct a public hearing regarding the annexation of certain property, located at the Southwest corner of Cottonwood Avenue and Sand- erson Avenue in the City of San Jacinto, County of Riv- erside, to Landscaping, Lighting and Park District No. 2 ('District') as Annexation No. 86 which, if annexed, will become Zone 86 of the District, and the assessments which are proposed to be levied on parcels of property in Zone 86 for fiscal year 2010-11. According to the City's records you are the record owner of a parcel or parcels of property within Zone 86 which is or are subject to the levy of the proposed assessments. The total amount of the assessments which are proposed to be levied for fiscal year 2010-11 on parcels in Zone 86 is $22,696.76. The amount of the annual assessment which is pro- posed to be levied on each parcel in Zone 86 is as follows: Annual Assessment Parcel Identification Amount Per Parcel 432-270-021 $7,453.67 432-170-022 $5,774.92 432-270-023 $9,468.18 The assessments are proposed to be levied to pay the annual cost of the installation, operation, maintenance and servicing of street lighfing; traffic signals; parkway and park/open space landscaping; park facines; and drainage facilities (pipe, catch basins, junction struc- tures, and connections to flood control channel). Also included is graffiti removal, and any other appurtenant Improvements ('improvements') in the District. The total amount of the assessments which are pro- posed to be levied on parcels of properly in Zone 86 is equal to the amount of the estimated annual cost of the installation, operation, maintenance and servicing of the Improvements within Zone 86 for the 2010-11 fiscal year. The amount of the assessment which is proposed to be levied on each parcel in Zone 86 was calculated on the basis of the proportionate special benefit derived by the parcel in relationship to the entirety of the costs that are related to the installation, operation, maintenance and servicing of the improvements for said fiscal year and was determined by dividing the estimated annual cost by the number of units of benefit within Zone 86. The assessments will be levied on all parcels within Zone 86 so Fong as such assessments are necessary to pay the annual cost of the Installation, operation, maintenance and servicing of the Improvements in Zone 86. The City Council has determined that the amount of the assessment which will be levied per parcel for each parcel in Zone 86 in future fiscal years maybe increased by the percentage Increase In the Consumer Price Index - All Urban Consumers for the Las Angeles-Anaheim- Riverside Area provided that the amount of the assess- ment is not increased by more than seven and one-half percent (7 16%) In any fiscal year and provided that the amount of the assessment to be levied on any parcel in any fiscal year shall not In any event exceed the rea- sonable costs of the proportional special benefit con- ferred on the parcel. Property owners who vale As- sessment Ballots In support of the levy of the proposed assessment will also be voting in support of such an in- crease in the annual amount of assessments to be levied In future fiscal years. At the conclusion of the public hearing, the City Clerk will tabulate the assessment ballots submitted, and not withdrawn, in support of or opposition lathe levy of the proposed assessments. A maturity protest will exist if the assessment ballots submitted, and not withdrawn, in opposition to the levy of the proposed assessments ex- ceed the assessment ballots submitted, and not with- drawn, in favor of the levy of the proposed assessments, weighting those assessment ballots by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot is submitted. If there is a maturity protest against the levy of the pro- posed assessments, the properly will not be annexed to the District and the City Council will not levy the pro- posed assessments on parcels of properly within the District. DATED: October 26, 2009 /s/ Barry McClellan City Clerk City of San Jacinto 1W23 Account Information Phone #: (951) 487-7330 Name: SAN JACINTO, CITY OF Address: 1P 0 BOX 488 SAN JACINTO CA Acct #: 103537 Client: Placed by: Barbara Skinner, BBK Law Fax #: (951) 654-8021 Ad Information Classification: Legals Publications: Hemet-San Jacinto Zone Start date: 10-23-09 Stop date: 10-23-09 Insertions: 1 Rate code: LE-City Ad type: Ad Liner Taken by: Tinajero, Maria Size: 2x111.280 Bill size: 223.00x 5.14 agate lines Amount due: $133.80 0 AGENDA ITEM November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: City Attorney SUBJECT: Proposed Resolutions Annexing Property to Landscaping, Lighting and Park District No. 2, Annexation No. 86 RECOMMENDATION: 1. Staff recommends that the City Council, by motion, approve and adopt the following Resolutions initiating the annexation of territory (commonly known as the KZ Development Company, Assessor's Parcel Nos. 432- 270-021, 432-270-022, and 432-270-023): a. Resolution No. Initiating Proceedings for the Annexation of Property to Landscaping, Lighting and Park District No. 2, Annexation No. 86 b. Resolution No. Approving the Engineer's Report for the Annexation of Property to Landscaping, Lighting and Park District No. 2, Annexation No. 86. c. Resolution No. Declaring Intention to Annex Property to Landscaping, Lighting and Park District No. 2, Annexation No. 86. 2. Conduct Public Hearing and at the conclusion of the public hearing if the City Council determines that a majority protest does not exist, by motion, approve and adopt Resolution No. Ordering Annexation of Territory to Landscaping, Lighting and Park District No. 2 and Levying Assessments. Approvals City Manager: 0, Finance Director . , Page 1 of 3 BACKGROUND: In connection with the development of property owned by Garfield Beach CVS, LLC a California limited liability company, and SRC, L.P., a California limited partnership (Assessor's Parcel Nos. 432-270-021, 432-270-022, and 432-270- 023), in the City of San Jacinto, County of Riverside, the City has required that the property be annexed to LLPD No. 2 to finance the cost of maintaining and servicing various improvements that will benefit the property within that development. The property proposed to be annexed to the district will receive the special benefit of the improvements and will be assessed to pay the costs of installation, operation, maintenance and/or servicing of street lights, traffic signals, landscaped areas, municipal parks, drainage facilities, graffiti removal and incidental expenses of the assessment district. DISCUSSION: Staff is recommending that the City Council take all action that is necessary to annex the property to LLPD No. 2 during the City Council meeting on November 5, 2009. The owner of the property proposed to be annexed to LLPD No. 2 has waived all notice requirements pertaining to these annexation proceedings and has agreed to conduct the public hearing on any date deemed advisable by the City Council. The first step is to adopt the Resolution Initiating Proceedings, which initiates the annexation process by ordering the Engineer of Record, GFB-Friedrich & Associates, Inc., to prepare the Engineer's Report, describing in detail the improvements to be financed by the assessment district, the estimated cost of such improvements and the special benefits that the property within the assessment district will receive. The next step in the annexation proceedings is to adopt a resolution approving the Engineer's Report and a resolution declaring the City Council's intention to annex the property to LLPD No. 2. The resolution of intention also schedules the public hearing on the annexation and the levy of the assessments upon the property proposed to be annexed to the District. The purpose of the public hearing is to hear testimony from any interested persons and to consider objections or protests, if any, to the proposed assessments. As required by the Act, the notice and assessment ballot has been mailed to the record owner of the property proposed to be annexed to the District with instructions to vote and return the ballot to the City before the conclusion of the public hearing on November 5, 2009. At the conclusion of the public hearing, the City Council should direct the City Clerk to tally the assessment ballots submitted and to determine whether a majority protest exists. A majority protest exists if assessment ballots submitted in opposition to the proposed assessments exceed assessment ballots submitted in favor of the proposed assessments. If a Page 2 of 3 majority protest exists, the City may not annex the property to the District or levy the assessments. If a majority protest does not exist, the City Council may proceed with the recommended action described above. If annexed, the District would finance the cost of maintaining and servicing various improvements that will benefit the property proposed to be annexed to the District, including street lights, traffic signals, landscaping, drainage facilities and graffiti removal. ALTERNATIVES: 1) Continue item or take no action. FISCAL IMPACT: No cost is attributed to this action. ATTACHMENTS: Resolution Nos. and Page 3 of 3 STATE OF CALIFORNIA) RESOLUTION NO. COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO INITIATING PROCEEDINGS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR THE ANNEXATION OF PROPERTY (COMMONLY KNOWN AS KZ DEVELOPMENT COMPANY, ASSESSOR'S PARCEL NOS. 432- 270-021, 432-270-022 AND 432-270-023), TO LANDSCAPING, LIGHTING AND PARK DISTRICT NO. 2 (LLPD NO. 2) ANNEXATION NO. 86 AND ORDERING THE PREPARATION OF THE ENGINEER'S REPORT (LLPD NO. 2 ANNEXATION NO. 86) WHEREAS, it has been determined by the City Council ("City Council") of the City of San Jacinto ("City") that the public interest, convenience and necessity require the installation, operation, maintenance and/or servicing of street lights, traffic signals, graffiti removal, landscape, drainage facilities and any improvements appurtenant thereto, as set forth in Section 22535 of the California Streets and Highways Code; and WHEREAS, the City Council has determined that, to finance such facilities and the maintenance and servicing thereof, certain property that will receive benefit from the maintenance and servicing of such facilities should be annexed to existing Landscaping, Lighting and Park District No. 2 of the City of San Jacinto ("District"); and WHEREAS, the proceedings for the annexation of such property to the District are authorized by and will be conducted pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 (commencing with Section 22500) of Division 15 of the California Streets and Highways Code; and WHEREAS, the City Council has also determined that proceedings for the levy of assessments on such property to pay the costs of the maintenance and servicing of such facilities during fiscal year 2010-11 should also be conducted pursuant to Chapter 3 (commencing with Section 22620) of Part 2 of Division 15 of the California Streets and Highways Code. NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto as follows: SECTION 1. The City Council proposes to annex certain property to the District pursuant to the Landscaping and Lighting Act of 1972, Part 2 (commencing with Section 25000) of Division 15 of the California Streets and Highways Code. Page 1 of 3 SECTION 2. Improvements. The Improvements which shall be provided for the property proposed to be annexed to the District by and through the assessments levied annually thereon shall include the following: SECTION 3. (a) the installation or construction of public lighting, facilities, including, but not limited to, street lights; (b) the installation or planting of landscaping, including, but not limited to, street trees, parkways, and median islands; (c) the installation or construction of park or recreational facilities; (d) the installation or construction of any facilities which are appurtenant to any improvements listed in (a) through (d) or which are necessary or convenient for the maintenance or servicing thereof including, but not limited to, irrigation, drainage, and electrical facilities; and (e) the maintenance and servicing of any of the foregoing. The property to be specifically charged for the maintenance and servicing of such improvements shall include all of the land located within Assessor's Parcel Nos. 432-270-021, 432- 270-022 and 432-270-023 in the City of San Jacinto, County of Riverside, and shall be designated "Annexation No. 86 to Landscaping, Lighting and Park District No. 2". SECTION 4. The property described in Exhibit "A" which is proposed to be included within the proposed boundaries of Annexation No. 86 to the District may be presently included in Landscaping, Lighting and Park District No. 1 of the City of San Jacinto. Upon the completion of proceedings for the annexation of such property to the District it shall be detached from such other district. SECTION 5. GFB — Friedrich and Associates, Inc., the District's engineer ("Engineer"), is ordered to prepare and file a report in accordance with Article 4 (commencing with Section 22565) of Chapter 1 of Part 2 of Division 15 of the California Streets and Highways Code with respect to the annexation of the property described in Section 3 hereof to the District and the levy of assessments on such property to pay the costs of the maintenance and servicing of the improvements described in Page 2 of 3 Section 2 hereof during fiscal year 2010-11. Upon completion, the Engineer shall file said report with the City Clerk of the City Council for submission to the City Council. ADOPTED, SIGNED AND APPROVED this 5 th day of November, 2009, by the following vote: Ayes: Nays: Absent: Abstained: City of San Jacinto By, Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk, APPROVED AS TO FORM: City Attorney, City of San Jacinto Best, Best & Krieger, LLP Page 3 of 3 EXHIBIT A Annexation No. 86 to Landscaping, Lighting and Park District No. 2 Legal Description ASSESSOR'S PARCEL NUMBERS: 432-270-021, 432-270-022 and 432-270-023 STATE OF CALIFORNIA) RESOLUTION NO. COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO APPROVING ENGINEER'S REPORT FOR THE ANNEXATION OF PROPERTY (COMMONLY KNOWN AS KZ DEVELOPMENT COMPANY, ASSESSOR'S PARCEL NOS. 432- 270-021, 432-270-022, AND 432-270-023) TO LANDSCAPING, LIGHTING AND PARK DISTRICT NO. 2 (LLPD NO. 2) OF THE CITY OF SAN JACINTO (LLPD NO. 2, ANNEXATION NO. 86) WHEREAS, on November 5, 2009, the City Council of the City of San Jacinto ("City Council"), adopted Resolution No. initiating proceedings for the annexation of property to Landscaping, Lighting and Park District No. 2 of the City of San Jacinto ("District") and ordered GFB - Friedrich and Associates Inc., the Engineer of Record, to prepare and file a report in accordance with Section 22565 of the California Streets and Highways Code ("Code"); and WHEREAS, the Engineer of Record has filed with the City Clerk its report ("Engineer's Report") containing the matters specified in Section 22565 through 22574 of the Code; and WHEREAS, the Engineer's Report has been duly presented by the City Clerk to the City Council for consideration and has been fully considered by the City Council, and this City Council finds that each and every part of the Engineer's Report is sufficient, and that no portion of the report requires or should be modified in any respect. NOW, THEREFORE, BE IT RESOLVED determined and ordered by the City Council of the City of San Jacinto, as follows: SECTION 1. SECTION 2. The Engineer's estimate of the itemized costs and expenses of the installation, operation, maintenance and/or servicing of street lights, traffic signals, graffiti removal, landscaping, drainage facilities and any improvements appurtenant thereto and the incidental expenses in connection therewith, contained in the Engineer's Report shall be, and each of them are hereby, preliminarily approved and confirmed. The diagrams showing the property proposed to be annexed to the District referred to and described in the Engineer's Report and the boundaries of the property proposed to be annexed to said District as the same existed at the time of passage of Resolution No. , are hereby preliminarily approved and confirmed. Page 1 of 2 SECTIOF 3. SECTION 4. The proposed assessments upon the property proposed to be annexed to the District are in proportion to the estimated benefit to be received by said property, respectively, from said improvements and of the incidental expenses thereof, as contained in the Engineer's Report. Said Report shall stand as the Engineer's Report for the purposes of all subsequent proceedings for Annexation No. 86 to the District. SECT101.5. The Mayor shall sign this Resolution and the City Clerk shall attest and certify to the passage and adoption thereof. ADOPTED, SIGNED At :7") APPROVED this 5 th day of November, 2009, by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto By, Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk APPROVED AS TO FC-111: City Attorney, City of San Jacinto Best, Best & Krieger, LLP. Page 2 of 2 ENGINEER'S REPORT Annexation No. 86: CITY OF SAN JACINTO LANDSCAPING, LIGHTING AND PARK DISTRICT NO. 2 Preliminary Date: October 15, 2009 Confirmed Date: October 15, 2009 INTRODUCTION Pursuant to the order of the City Council of the City of San Jacinto, this report is prepared in compliance with the requirements of Article 4, Chapter 1, Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of the State of California. This report presents the engineering analysis for Annexation No. 86 to the district known as LANDSCAPING, LIGHTING AND PARK DISTRICT NO. 2 in the CITY OF SAN JACINTO (hereinafter referred to as "District"). This District, by special benefit assessments, provides funding for the installation, operation, maintenance and servicing of street lights and traffic signals; the installation, maintenance and servicing of landscaped areas (parkways, medians, open space, detention/retention basins, etc.); the installation, operation, maintenance and servicing of municipal parks; the installation, operation, maintenance and servicing of drainage facilities; and graffiti removal from horizontal and vertical surfaces which are appurtenant to the above items; all of which are located in public rights-of-way or easements in the District. Reference is hereby made to the: ENGINEER'S REPORT Formation of CITY OF SAN JACINTO LANDSCAPING, LIGHTING AND PARK DISTRICT NO. 2 Fiscal Year 2002-2003, that was confirmed on April 4, 2002, and is hereinafter referred to as the "Master Engineer's Report," which is hereby incorporated herein as though set forth in full. BOUNDARIES OF DISTRICT The proposed boundary of Annexation No. 86 to the District is completely within the City Limits of the City of San Jacinto and is shown on the Boundary Map (attached hereto as Exhibit "A" and incorporated herein by reference and on file in the office of the City Clerk at the San Jacinto City Hall). Exhibit "A" serves as the Assessment Diagram for Zone 86 of the District and a copy of said Exhibit "A" may be found in the Appendix to this Report. The boundary includes the parcels of land that are located in the vicinity of street lighting, landscaping, drainage and/or park improvements that were, or soon will be, installed as a condition of approval of a land development project; the operation and maintenance of which will be funded by this assessment district. All parcels of real property included within the District LLPD No. 2 - Engineer's Report 1 Annexation No. 86 are described in detail on maps on file in the Riverside County Assessor's office or by a tract and parcel number legal description. Zones The 1972 Act provides for areas within a district to be classified into different zones. Annexation No. 86 to Landscaping, Lighting and Park District No. 2 is comprised of one zone. The costs of the installation, operation, maintenance and servicing of the various improvements and facilities within this zone, will be separately determined, and incidental costs will be prorated and added to determine the total cost. This zone is comprised of Parcel Map 35888-1 and -2 (C.U.P. No. 1- 08) (Sanderson Retail Center) and is designated as Zone 86. Future annexations will be assigned Zone designations e.g. Zone 87, Zone 88, Zone 88A, Zone 89, etc., as appropriate. IMPROVEMENTS The authorized facilities and items of servicing and maintenance are described in the "Master Engineer's Report." Said description is included within this report by reference. A copy of said "Master Engineer's Report" is on file in the Office of the City Clerk of the City of San Jacinto and may be reviewed, or a copy obtained, at City Hall during normal business hours. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Zone 86 Improvements The improvements included in Zone 86 to be installed, operated, serviced, and maintained are street lighting and traffic signals; parkway landscaping; and storm drains (catch basins and pipe in public right-of-way or easement). Also included is the servicing and maintenance required for graffiti removal. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Plans and Specifications The plans and specifications showing and describing the general nature, location and extent of the improvements to be operated and maintained within Annexation No. 86 are on file in the office of the City Clerk and are incorporated herein by reference. FINANCIAL ANALYSIS The estimated annual cost requirements for Zone 86, for the improvements described in the "Improvements" section of this report, are summarized in Exhibit "B," attached hereto and incorporated herein by reference, in the Appendix to this report. Estimated costs are shown for each improvement or facility, and for incidental costs to be funded by the District. Notes: 1. Incidental Costs are prorated in proportion to the respective servicing and maintenance costs in each Zone (or sub-zone). Future annexations will be treated in a similar manner. METHOD OF APPORTIONMENT The net amount to be assessed upon lands within the District in accordance with this report is apportioned by a formula and method which fairly distributes the total assessments among all LLPD No. 2 - Engineer's Report 2 Annexation No. 86 assessable lots or parcels in proportion to the estimated special benefit to be received by each lot or parcel from the improvements. Said method is described in the "Master Engineer's Report" and is included within this report by reference. A copy of said "Master Engineer's Report"' is on file in the Office of the City Clerk of the City of San Jacinto and may be reviewed, or a copy obtained, at City Hall during normal business hours. ASSESSMENT FORMULA The basic formula used to calculate the amount allocated to each lot or parcel within the District for each type of improvement or facility is described in the "Master Engineer's Report." Said formula, including but not limited to, the table entitled "ASSESSMENT FORMULA USING ASSESSMENT UNIT (AU) METHOD," and subsections entitled Special Benefit Analysis, Street Classification and corresponding General Benefit (%), and Assessment of Public Property is included within this report by reference. LIMITATION ON INCREASE OF ANNUAL ASSESSMENT The City Council intends to increase assessments, on an annual basis when necessary, in accordance with the Consumer Price Index for all Urban Consumers for the Los Angeles- Anaheim-Riverside area, published by the United States Department of Labor, Bureau of Labor Statistics; provided however, that any such annual increase shall not exceed seven and one-half percent (7.5%). The current Southern California telephone number for the Consumer Price Index (CPI) Hotline is (310) 235-6884. ASSESSMENT SPREAD The individual Zone 86 assessments, tabulated by Assessor's Parcel Number or other form of identification, are shown on the Assessment Spread on file in the Office of the City Clerk of the City of San Jacinto and attached hereto as Exhibit "C." The total cost of the improvements described in the "Improvements" section of the report for Annexation No. 86 for Fiscal Year 2010-2011 is estimated to be $22,696.76. The maximum annual assessment for each of three parcels for the 2010-2011 fiscal year is therefore: Parcel Map 35888-1: Lot 1 $9,468.19 Parcel Map 35888-2: Lot 1 $7,453.67 Lot 2 $5,774.92 Annexation No. 86 is the first phase of a larger commercial project. When future parcels are added to this project, this assessment district annexation will be recalculated with the included parcels, which will generally cause some of the improvement assessments in earlier phases to be reduced. The mechanism to account for any reduced assessments will be determined when new parcels are added to the project. LLPD No. 2 - Engineer's Report Annexation No. 86 APPENDIX EXHIBITS Exhibit "A" — Boundary Map Exhibit "B" — Cost Estimate Exhibit "C" — Assessment Spread EXHIBIT "A" BOUNDARY MAP LANDSCAPING, LIGHTING AND PARK DISTRICT NO, 2 ANNEXATION NO. 86 for thy CITY OF SAN JACINTO FISCAL YEAR 2010-2011 t•-° _ AVE =SR' SOW' 200.54' ZONE 86 AggifilaRERNMENIRn rooMMI AMMO if: OSAISAYI 1 1,0 PAD Vat. Ns. P.M. 35888-1 PARCEL 1 TAT AC NET P.M. 35888-2 PARCEL 1 1.11 AC NET - SANDERSON VICINITY MAP ors FSIED DI THE OFFICE Of THE COY CLERK OF THE art OF SAN JACINTO, COUNTY OF RNERSIDE. STATE OF CALIFORNIA SHEL___DAY Of 20- COY CLERK FRED IN THE OFFICE OF THE COUNTY AMOR. COUNTY RNERSIDE. STATE OF CALIFORNIA. THIS-DAT OF P.M. 35888-2 PARCEL 2 ORB AC NET COY CLERK 'S I THE ASSESSMENT NUMBER FOR EACH LOT Oft PARCEL WITHIN THE DISTRICT IS THE ASSESSOR'S PARCEL NUMBER AS ASSIGNED BY 'INC COUNTY OF FOREASIDE Assasolts OFTICE HARGIS NEISOCAS.W 27520 'THE USES MIND DIFIENSIONE FOR EACH LOT OR FARCE, OF LAND WHIN THE DISTINCT ME SHOWN ON THE ASSESSOR'S PARCEL YAPS ON HIS IN THE OFFICE OF THE RIVERSIISE COMM' ASSESSOR. LEGEND .-4t son EC4:44 INDIGTISS W0S0000C 120121 ASSESSMENT DISTRICT BOUNDARY CATCH BASIN STORM DRAW ORME PIRATE STORM DRAIN TRAFFIC SCR. PARCEL MAP 35888-1 & -2 SCALE .o 0 10 (HA FEET ) I Inch f CITY OF SAN JACINTO LIGHTING, LANDSCAPING AND PARK DISTRICT NO. 2 Annexation No. 86 (Zone 86) COST ESTIMATE Item Ouanhty Unit Unit Cost/ Month Street lights Park Marnteranoe Landscape Maintenance Stcrm D air Maint Graffiti Removal TOTALS Co t/h o. CostrYr Cos o. Cost/Y o to Co Cost/Mo. CoNN Cos o. C t/Yr Per Month Per Veer Sanderson Retail Center - CUE No 1-06 (P.M. 35888-1 and -2 Three Commercial Parcel Street Lights and Traffic Signals Street Lights 22,0019 lumen (Sanderson Aye) 8 Ca $14.08 Imo $ 12 64 St,3S1.5 $112.60 $1,35160 Leon Generat Benefitt$14.00/Ught015 Light is ($7.04) ,1004.48 ( 0.0 1584.45 Traffic Signals Intersection of Sanderson Ave and and Cottonwood Ave (upgradesignal) Maintenance Cost 1 L.S./Mo $219.17 021017 $2,630.04 $2r0 17 02,030,00 Energy Cost ($55/Signal/Month) L.S./Mo $5560 $5500 806000 $05.00 $00000 Less Genemi Benefit (60% for "Pass.through" Traffic and 00% for the non-pro(ect segments surrounding the signal . 90%) 1540.90) (5594.00 $40.50) ($594.00 Cottonwood Ave 500 feet east of Sanderson Ave (new signal) Maintenance Cost 1 LS./Mo $21917 $210.17 $2,630.04 $210.17 $2,030.00 Energy Coat ($55/Signal/Month) LS./Mo $5500 55 00 8660,00 86500 500000 Less General Benefit (70% for "Pass-though" Traffic and 30% for traffic entering the Sanderson Retail Center) 810 1.02) 152,303.03 (0101.52) (52,303.03 Note Assessments for the future traffic signals shall not be collected until said signal is installed, nOssape Maintenance Parkways Sanderson Avenue (variable width) 7,672 S.F 80.150 /yr $9S,00 $1,150.80 006.90 $1,15060 Cottonwood Avenue (ye/table widths) 7,974 SF 0150 /yr $99 68 51,196.10 $00.00 $1,196.10 Medians Sanderson Avenue 1,3200 1/2 ST 50.150 /yr 00.25 $99.00 08 $99.00 Cottonwood Avenue 1,000 x 10 S.F $0.150 tyr $s.75 $01.00 00.75 $81.00 Irrigation Water 10,846 S.F $0.258 /yr $362.10 $4,346.27 $302.10 $4,346.27 Drainage Facittly Maintenance Curb Inlets (Sanderson Ave 8 Cottonwood Ave) 3 L.S. $75 / $22600 $2 700 00 22S,00 2,70000 ra L.S. 0150 Imo $150.00 $160060 ISO.00 1.80000 Subtotal, Maintenance and Servicing $412.52 $4,950.25 $0.00 $0.00 $ 72 76 $6.873.17 $225.00 $2,700 DO $150.00 $1,800.00 $ 360 29 $16,323.42 Contingency (10%) S4 25 $495.03 00 05 555/ 057.20 $607.32 $22.50 $2 0 00 $15.00 $180.00 $13003 $1,632.34 TOTAL, Maintenance and Servicing 0453,77 $5,445.28 $000 $000 $6 0 04 $7,55048 $247.50 0 9 0 00 $165.00 $1,980.00 $ 496 $17,955.76 WI /200ts Assessment Engineer L.S 850 I yr 021 48 82S777 $000 0000 $29.03 $357.90 $11.72 0140.00 $7.81 $93.73 $ 0 83 $85060 Legal Counsel L.S 0 / yr 00.50 $060 8000 00 .00 8000 0000 0060 0000 8060 $0.00 0000 $0.00 City Administration L.S. BOO / yr $20.22 024261 50 00 0000 $28.07 $336,85 $11.03 0132.33 07.35 $38.22 $66.07 $80600 City Inspection Costs LS. 900 / yr $2274 $272.93 $0 00 $000 $3r.Sr 5378.96 $12.41 314007 $8.27 $99.24 07600 $900.00 NPDES Costs LS. 1100 / yr $27.50 $333.59 $0.00 0000 830.00 $463.17 $15.16 $181 95 $10.11 $121.30 001.07 $1,10000 County Collection Fees L.S. 176 / yr 544S 85327 $050 $0 00 06 18 $74.11 $2.43 $29 $162 $1941 $ 467 $17660 Miscellaneous L.S. 290 / yr $ $87.95 $0.00 $0.00 $10.10 $122.11 04 60 647.07 $2.66 031.98 $24 $290.00 Reserve Fund L.5 625 / yr 9 $189.54 80,05 $000 $2n.n3 $263.16 $661 $10330 $5.74 068.92 $92.00 $625 00 TOTAL, Incidental Costs $4,741 yr si no 8 437.76 $0.00 $000 $166 5 61,996.25 $65.35 $704.19 $43.57 $52279 $305.00 4,741.00 C the District Developer 000 005 0.00 000 000 0.00 0.00 000 0.00 0.00 000 06 TOTAL AMOUNT TO ASSESSMENT 057390 $6,883,04 50 00 $0.00 070030 59,556.74 3312.85 $3,754 19 $200.57 $2,502.79 51,891 40 $22,606.70 Assessment per Lot Vanes Refer to Exhibit "C" Iv Annexation No 86 is the first phase of a larger commercial project When future parcels are added to this project, the assessment district will be recalculated with the included parcels, which will generally cause some of the improvement assessments in earlier phases to be reduced, The mechanism to account for any reduced assessments will be determined when new parcels are added to the project, n The property owners of this development wish to finance and maintain certain of the items of maintenance shown above, as agreed to with the City of San Jacinto The City will not levy annual assessments for any maintenance items financed by the property owners. Should any of the items of maintenance currently financed by the property owners not be maintained lathe satisfaction of the City, the City will assume the maintenance of such items and levy the appropriate assessments to pay for them, I- The required median landscaping maintenance funding for this assessment district is assessed at one-half of the total landscaped area because properties on each side of the street receive one-half of the benefit. October 14, 2009 B-1 Exhibit "B" CITY OF SAN JACINTO LANDSCAPING, LIGHTING AND PARK DISTRICT NO. 2 Annexation No. 86 (Zone 86) ASSESSMENT SPREAD Parcel Identification (APN) Property Owner Name Proposed Land Use Code Assessable Acreage (acres) Asmt. Units (AU) Street Lights Park Maint. Landscape Maint. Storm Drain Maint. Graffiti Removal Dollars per AU ($) Assessment per Parcel ($) Sanderson Retail Center - C.U.P. No. 1-08 (P.M. 35888-1 and -2 Three Commercial Parcels) P.M. 35888-1, Parcel 432-270-023 1 Garfield Beach CVS, LLC Cl 1.41 4.23 $2,871.33 $0.00 $3,986.69 $1,566.10 $1,044.07 $2,238.34 $9.468.18 P.M. 35888-2: Parcel 1 432-270-021 SRC, LP, KZ Holdings Cl 1.11 3.33 $2,260.41 $0.00 $3,138.46 $1,232.89 $821.92 $2,238.34 $7,453.67 Parcel 2 432-270-022 SRC, LP, KZ Holdings Cl 0.86 2.58 $1,751.31 $0.00 $2,431.60 $955.21 $636.81 $2,238.34 $5,774.92 P.M. 35888-1 and -2 Totals 3.38 10.14 $6,883.04 $0.00 $9,556.74 $3,754.19 $2,502.79 $22,696.76 Current Ownership: Address: Garfield Beach CVS, LLC, a California Limited Liability Company 1 CVS Drive, Woonsocket, RI 08295 - and - SRC, LP, a California LP, KZ Holdings 18818 Teller Avenue, Suite 100, Irvine, CA 92612 Developer: KZ Devco Address: 18818 Teller Avenue, Suite 100 Irvine, CA 92612 C-1 Exhibit "C" STATE OF CALIFORNIA ) RESOLUTION NO. COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO DECLARING INTENTION TO ANNEX PROPERTY TO LANDSCAPING, LIGHTING AND PARK DISTRICT NO. 2 (LLPD NO. 2), TO LEVY AND COLLECT ASSESSMENTS ON SUCH PROPERTY FOR FISCAL YEAR 2010-11 AND PROVIDING NOTICE OF TIME AND PLACE OF A HEARING ON THE PROPOSED ANNEXATION AND THE PROPOSED ASSESSMENTS, DETERMINING DURATION OF SUCH ASSESSMENTS AND ANNUAL INCREASES IN AMOUNTS THEREOF AND PROVIDING FOR ELECTION THEREON FOR THE PROPERTY (COMMONLY KNOWN AS KZ DEVELOPMENT COMPANY, ASSESSOR'S PARCEL NOS. 432-270-021, 432-270-022, AND 432-270- 023) (LLPD NO. 2, ANNEXATION NO. 86) WHEREAS, the City Council ("City Council") of the City of San Jacinto ("City") has initiated proceedings for the annexation of certain property to Landscaping, Lighting and Park District No. 2 of the City of San Jacinto ("District"), pursuant to the Landscaping and Lighting Act of 1972, Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code ("Act"), for the installation, operation, maintenance and/or servicing of street lights, traffic signals, graffiti removal, landscaping, drainage facilities and any improvements appurtenant thereto as provided in Section 22525 of the California Streets and Highways Code; and WHEREAS, as ordered by the City Council, GFB - Friedrich and Associates, Inc. has filed with the City Clerk a report regarding the assessments which are proposed to be levied and collected from the owners of assessable property within the District to pay the costs of the installation, operation, maintenance and servicing of street lighting, traffic signals, graffiti removal and improvements appurtenant thereto, and that report has been presented to and considered by the City Council; and WHEREAS, upon the annexation of such property to the District, and to the extent such property is included within Landscaping, Lighting and Park District No. 1 and the assessments levied thereby finance the such improvements provided by the District, it should be detached from Landscaping, Lighting and Park District No. 1. WHEREAS, it is necessary that the City Council adopt a resolution of intention pursuant to Section 22587 of the Streets and Highways Code to, among other things, fix and give notice of the time and place of a public hearing on said report, the proposed annexation of such property to the District and the proposed assessments. Page 1 of 6 NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto as follows: SECTION 1. SECTION 2. Findings. The City Council of the City of San Jacinto finds that: (a) The foregoing recitals are true and correct; (b) The report of GFB - Friedrich and Associates, Inc. (the "Report") contains all matters required by Sections 22565 through 22574 of the Streets and Highways Code and may, therefore, be approved by the City Council; (c) The assessments, which are proposed to be levied for fiscal year 2010-11 on all parcels of assessable property that are proposed to be annexed to Landscaping, Lighting and Park District No. 2, are based on special benefit conferred upon each such parcel from the payment of the cost of the installation, operation, maintenance and/or servicing of street lighting, traffic signals, graffiti removal, landscaping, drainage facilities and appurtenant improvements; (d) The proportionate special benefit derived by each such parcel has been determined in relationship to the entirety of the capital cost of the installation, operation, maintenance and servicing of street lighting, traffic signals, graffiti removal, landscaping, drainage facilities and appurtenant improvements; and (e) The amount of the assessment which is proposed to be assessed on each such parcel is based upon and will not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Intention. The City Council declares that it intends to annex the property described in Section 4 to the District, to detach such property from Landscaping, Lighting and Park District No. 1, and to levy assessments on all lots and parcels of assessable property which are proposed to be annexed to Landscaping, Lighting and Park District No. 2 of the City of San Jacinto for fiscal year 2010-11 in the amount set forth in the Report. Such assessments will be collected at the same time and in the same manner as county taxes are collected, and all laws providing for the collection and enforcement of Page 2 of 6 county taxes shall apply to the collection and enforcement of the assessments. SECTION 3. Improvements. The Improvements which shall be provided for the property proposed to be annexed to the District by and through the assessments levied annually thereon shall include the following: (a) the installation or construction of public lighting, facilities, including, but not limited to, street lights; (b) the installation or planting of landscaping, including, but not limited to, street trees, parkways, and median islands; (c) the installation or construction of park or recreational facilities; (d) the installation or construction of any facilities which are appurtenant to any improvements listed in (a) through (d) or which are necessary or convenient for the maintenance or servicing thereof including, but not limited to, irrigation, drainage, and electrical facilities; and (e) the maintenance and servicing of any of the foregoing. SECTION 4. Annexation to Assessment District. The distinctive designation of the annexation is "Annexation No. 86 to Landscaping, Lighting and Park District No. 2 of the City of San Jacinto." The property which is proposed to be annexed to the District and which comprises Annexation No. 86 is all the property which is identified by Riverside County Assessor's Parcel Numbers: 432-270-021, 432-270-022, and 432-270-023. Upon the completion of the annexation proceedings, the property which comprises Annexation No. 86 will be designated as Zone 86 of the District ("Zone 86"). The boundaries of Annexation No. 86 or Zone 86 are further described and shown in the Report. The territory included within Zone 86 is generally located in the City of San Jacinto, County of Riverside. Upon completion of the annexation proceedings, such territory shall be detached from existing Landscaping, Lighting and Park District No. 1. SECTION 5. Report and Assessments. The Report, which is on file with the City Clerk of the City Council, and which has been presented to the City Council at the meeting at which this Page 3 of 6 resolution is adopted, is approved. Reference is made to the Report for a full and detailed description of the Improvements, the boundaries of Annexation No. 86 and the assessments which are proposed to be levied on the assessable lots and parcels of property within Zone 86 for fiscal year 2010-11. SECTION 6. SECTION 7. SECTION 8. Duration of Assessments and Inflation Increases and Election Thereon. The assessments shall be levied on all parcels of assessable property within Annexation No. 86 or Zone 86 of the District, as identified in the Report, so long as the assessments are necessary to finance the Improvements specified in Section 3 and the maintenance and servicing thereof. The assessment amounts contained in the Report shall be subject to an annual adjustment or increase in an amount equal to the percentage increase in the Consumer Price Index — All Urban Consumers for the Los Angeles — Anaheim — Riverside Area; provided however that the amount of the assessment to be levied on any assessable parcel in any fiscal year shall not be increased by more than seven and one—half percent (7.5%), and the amount of the assessment to be levied on any parcel in any fiscal year shall not in any event exceed the actual total cost of the proportional special benefit conferred on that parcel. The assessment ballots, which are to be mailed to the owners of assessable parcels of property in Annexation No. 86 or Zone 86, as provided in Section 8 hereof, shall clearly indicate that the property owners are voting on the duration of and annual increases in the amount of the assessments as specified above. Hearing. The time and place of the hearing required by Section 22587 through 22594 of the Streets and Highways Code concerning the proposed annexation of the property described in Section 4 hereof to the District, the proposed detachment from Landscaping, Lighting and Park District No. 1, and the assessments which are proposed to be levied for fiscal year 2010-11 is set for 7:00 p.m. on November 5, 2009, at the San Jacinto Unified School District Board Room, located at 2045 S. San Jacinto Avenue, San Jacinto, California. Notice of Hearing and Ballots. The City Clerk of the City Council shall mail notice of the proposed annexation and the proposed assessments and of the time and place of the public hearing, as specified in Section 7 hereof, to the record owner of each assessable parcel of property identified in the Page 4 of 6 Report. Such notice shall specify the total amount of the assessment chargeable to all the property within Annexation No. 86 or Zone 86 to Landscaping, Lighting and Park District No. 2, the amount chargeable to each owner's particular parcel, the duration of the assessments, the reason for the assessments and the basis upon which the amount of the proposed assessments was calculated, together with the date, time and location of the public hearing on the proposed assessments as specified in Section 7 hereof. The notice shall include, in a conspicuous place, thereon, a summary of the procedures applicable to the completion, return and tabulation of the assessment ballots, which will accompany the notice and shall include a statement that the existence of a majority protest will result in the assessments not being levied, and that a majority protest will exist if, upon the conclusion of the hearing, ballots submitted in opposition to the assessments exceed the ballots submitted in favor of the assessments. Each such notice mailed to owners of identified parcels within Annexation No. 86 or Zone 86 to Landscaping, Lighting and Park District No. 2 shall contain a ballot which includes the City's address for receipt of any ballot when completed by any owner receiving such notice whereby each such owner may indicate his or her name, reasonable identification of the parcel and support or opposition to the proposed assessments. SECTION 9. That the Mayor shall sign this Resolution and the City Clerk shall attest and certify to the passage and adoption thereof. Page 5 of 6 ADOPTED, SIGNED AND APPROVED this 5 th day November, 2009, by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto By: Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk APPROVED AS TO FORM: City Attorney, City of San Jacinto Best, Best & Krieger, LLP Page 6 of 6 STATE OF CALIFORNIA ) RESOLUTION NO. COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO ORDERING THE ANNEXATION OF TERRITORY (COMMONLY KNOWN AS KZ DEVELOPMENT COMPANY, ASSESSOR'S PARCEL NOS. 432-270-021, 432-270-022, AND 432-270- 023) TO LANDSCAPING, LIGHTING AND PARK DISTRICT NO. 2 (LLPD NO. 2) AND LEVYING ASSESSMENTS FOR FISCAL YEAR 2010-11 (LLPD NO. 2, ANNEXATION NO. 86) WHEREAS, on November 5, 2009, the City Council ("City Council") of the City of San Jacinto ("City") adopted Resolution No. declaring its intention to annex certain territory to Landscaping, Lighting and Park District No. 2 ("Assessment District"), which was designated for purposes of such proceedings as "Annexation No. 86" and "Zone 86," and scheduling a public hearing thereon; and WHEREAS, by Resolution No. , the City Council approved the report of GFB-Friedrich and Associates, Inc., the Engineer of Record ("Report") which contained, among other matters, the proposed assessments to be levied for fiscal year 2010-11 upon assessable lots and parcels of land within the territory which comprises Annexation No. 86 to and Zone 86 of the Assessment District; and WHEREAS, pursuant to Section 53753 of the Government Code, notice of the proposed annexation and the proposed assessments and of the time and place of the public hearing thereon was mailed to the record owner of each parcel of property identified in the Report and further directed that each such mailed notice contain an assessment ballot upon which the property owner could indicate his or her support or opposition to the proposed assessments; and WHEREAS, the City Council has conducted the public hearing with respect to the annexation of the territory proposed to be annexed to the Assessment District and has received a report from the City Clerk regarding the tabulation of the assessment ballots submitted, and not withdrawn, in support of or opposition to the proposed assessments advising that the ballots which were received were voted in favor of the proposed assessments and that a majority protest does not therefore exist; and WHEREAS, by Resolution No. , the City Council determined that upon the annexation of such property to the Assessment District it should be detached from Landscaping, Lighting and Park District No. 1 to the extent the assessments levied thereby finance the same improvements provided for by the Assessment District. Page 1 of 5 NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto as follows: SECTION 1. SECTION 2. SECTION 3. SECTION 4. Findings. The findings recited in the preceding paragraphs are true and correct. Assessment District. The Assessment District is Landscaping, Lighting and Park District No. 2 of the City of San Jacinto. The territory which is proposed to be annexed to the Assessment District and which comprises Annexation No. 86 is described in the Report and includes all of the property located within Assessor's Parcel Nos. 432-270-021, 432-270-022, and 432-270-023 in the City of San Jacinto, County of Riverside. Improvements. The Improvements which shall be provided for the property proposed to be annexed to the District by and through the assessments levied annually thereon shall include the following: (a) the installation or construction of public lighting, facilities, including, but not limited to, street lights; (b) the installation or planting of landscaping, including, but not limited to, street trees, parkways, and median islands; (c) the installation or construction of park or recreational facilities; (d) the installation or construction of any facilities which are appurtenant to any improvements listed in (a) through (d) or which are necessary or convenient for the maintenance or servicing thereof including, but not limited to, irrigation, drainage, and electrical facilities; and (e) the maintenance and servicing of any of the foregoing. Annexation; Designation of Zone; Detachment. The territory comprising Annexation No. 86, as described in Section 2 hereof, is annexed to Landscaping, Lighting and Park District No. 2 of the City of San Jacinto. The diagram of the Assessment District, as modified to include Annexation No. 86 and as contained in the Report, is confirmed. Such annexed territory is designated as Zone 86 of the Assessment District. The territory comprising Annexation No. Page 2 of 5 86 and Zone 86 of the Assessment District shall be and is detached from Landscaping, Lighting and Park District No. 1 of the City of San Jacinto. SECTION 5. SECTION 6. SECTION 7. Levy of Assessments; Annual Increases; Duration. The assessments proposed to be levied on the lots and parcels within Zone 86 of the Assessment District for fiscal year 2010-11 in the amounts set forth in the Report and in the assessment ballot mailed to and returned by the owners of the property comprising Annexation No. 86 shall be and are confirmed and levied. Pursuant to Section 6 of Resolution No. , and as specified in such ballot, the annual amount of the assessment to be levied on each parcel of property in Zone 86 of the Assessment District shall be subject to an annual adjustment or increase in an amount equal to the percentage increase in the Consumer Price Index-All Urban Consumers for Los Angeles - Anaheim - Riverside Area; provided, however, that the amount of the assessment to be levied on any parcel in any fiscal year shall not be increased by more than seven and one-half percent (T5%) and the amount of the assessment to be levied on any parcel in any fiscal year shall not, in any event, exceed the actual total cost of the proportional special benefit conferred on that parcel. The assessments shall be levied annually on assessable lots and parcels of property in Zone 86 so long as the assessments are necessary to finance the cost of the operation, maintenance and servicing of the improvements specified in Section 3 within and for Zone 86. Filing With the County Auditor. The City Clerk shall cause the diagram and assessment as confirmed and levied hereby to be filed with the County Auditor of the County of Riverside as required by Section 22641 of the Streets and Highways Code. That the Mayor shall sign this Resolution and the City Clerk shall attest and certify to the passage and adoption thereof. Page 3 of 5 ADOPTED, SIGNED AND APPROVED this 5 th day of November, 2009, by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto By: Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk APPROVED AS TO FORM: City Attorney, City of San Jacinto Best, Best & Krieger, LLP. Page 4 of 5 Certificate of Election Official and Statement of Votes Cast STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF SAN JACINTO The undersigned, ELECTION OFFICIAL OF THE CITY OF SAN JACINTO, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the CITY OF SAN JACINTO LANDSCAPING, LIGHTING AND PARK DISTRICT NO. 2 SPECIAL ELECTION ANNEXATION NO. 86 in the City, held on November 5, 2009. I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in the area proposed to be annexed to Landscaping, Lighting and Park District No. 2 of the City of San Jacinto for or against the Measure are full, true and correct. VOTES CAST ON PROPOSITION 1: YES NO WITNESS my hand this day of November, 2009 Barry McClellan, City Clerk City of San Jacinto Page 5 of 5 AGENDA - TRANSMITTAL FORM TO: Rick Miller, Deputy City Clerk Enclosure: Staff Report for CC Meeting of 11-05-09 [CC or RDA] Ordinance No. 09-22 (name — brief description) Consent Calendar Item • Public Hearing Item: Notice required yes x no Copy attached yes no Published (date(s) Notices sent (date(s) City Departments Item • Attachments include (this needs to match the attachment list in the Staff Report: • Ordinance No. 09-22 • WRCOGANater Task Force Handout — Water Efficient Landscape Ordinance x Please provide a fully executed copy of documents to: Asher Hartel Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: Name of person that will be presenting item at the meeting: Asher Hartel DATE: 10-27-09 Asher Hartel, Planning Director [Name or Initials], [Title] S: \Community Development\PLANNER\Asher\Water Conservation\CC Transmittal 11-05-09.doc Page 1 of 3 AGENDA ITEM 4.4 November 5, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Asher Hartel, AICP, Planning Director SUBJECT: Ordinance No. 09-22, Landscape Water Use Efficiency Requirements Applicant: City of San Jacinto 595 S. San Jacinto Avenue San Jacinto, CA 92583 RECOMMENDATION: Staff recommends that the City Council by motion: Introduce Ordinance No. 09-22, Landscape Water Use Efficiency Requirements, for first reading, and by further motion read by title only. An Ordinance of the City Council of the City of San Jacinto, California, adding Chapter 15.44 to Title 15 (Buildings and Construction) of the Municipal Code, establishing Landscape Water Use Efficiency Requirements. BACKGROUND: Drought conditions, court rulings on endangered species, and a continuing crisis regarding a long term solution to the pumping of water through the Bay Delta continue to impact the way the State of California uses water. In 2006, the State adopted AB 1881, the Water Conservation in Landscaping Act, which requires local agencies (including cities) to adopt an ordinance by January 1, 2010 "as effective" as the State's Model Ordinance or the State's Model Ordinance would prevail. In early 2008, the State Department of Water Resources developed the first of several model water efficient landscape ordinances that defined State requirements for water efficient landscaping. DISCUSSION: The attached Ordinance 09-22 establishing landscape water use efficiency standards is based on a Local Model Ordinance developed by the Riverside County Water Task Force in early 2009. This ordinance was modeled on Riverside County Ordinance 859, incorporates the elements of the State's Model Ordinance, and has been tailored to meet the unique circumstances and needs of the Western Riverside County region. In June, 2009 the WRCOG Executive Committee endorsed the Local Model Ordinance and encouraged member cites to adopt or utilize it in creating their own respective ordinances. Staff has used the Local Model Ordinance with minimal changes and additions to apply to the City of San Jacinto. Key features of Ordinance 09-22 include its applicability to: 1. All new construction landscapes that are homeowner-provided or homeowner-hired of 5,000 sq. ft. or greater requiring a building permit 2. All other projects with a landscape area of 2,500 sq. ft. or greater that are subject to a discretionary permit or approval 3. Projects with CC&Rs that include common area/open space landscaping 4. Existing properties with landscaped areas one acre or greater, or properties served by a dedicated landscape irrigation meter Exemptions or special provisions are provided for: 1. Projects with landscaped area less than 2,500 sq. ft. 2. Homeowner installed projects less than 5,000 sq. ft. 3. Registered local, state or federal historic sites 4. Ecological restoration projects not requiring permanent irrigation 5. Botanical gardens and arboretums open to the public 6. Cemeteries, parks, sports fields, and other high traffic turf areas The ordinance will require landscape and irrigation plans to expand their scope over the City's current requirements to include additional water conservation measures. The Riverside County Guide to California Friendly Landscaping, which stresses the use of water conserving native plants and minimal areas of turf, is incorporated into the ordinance by reference. Local water purveyors in the City (the City Water Department, Eastern Municipal Water District, and Lake Hemet Municipal Water District) will be relied upon to enforce landscape water use efficiency requirements through the use of programs such as a tiered water rate structure, a conservation water pricing structure, irrigation audits and surveys, and penalties for water waste. The City's recently adopted Ordinance No. 09-16, "Water Conservation and Water Supply Shortage Program and Regulations" (May, 2009) is incorporated by reference into Ordinance 09-22. The updated City Landscape Design Guidelines have been held Page 2 of 3 back pending adoption of Ordinance 09-22, and will follow when staff ensures consistency with the requirements in the ordinance. ENVIRONMENTAL ANALYSIS: Pursuant to the CEQA process, this ordinance does not require environmental review under the California Environmental Quality Act ("CEQA") (Cal. Pub. Resources Code, §§ 21000) and its implementing regulations because the proposed amendment is not a 'project' within the meaning of CEQA Regulations section 15378(b)(2) in that it is merely general policy or procedure making and because the ordinance does not require environmental review pursuant to CEQA Regulations section 15061(b)(3) based on the fact that the ordinance is within the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment and it can be seen with certainty that there is no possibility that the ordinance may have a significant effect on the environment. CONCLUSION: Staff recommends adoption of Ordinance 09-22 in order to meet the State mandate under AB 1881 for an ordinance to define water efficient landscape requirements for the City. ALTERNATIVES: 1) Consider and, by motion, conduct the first reading and introduce the proposed ordinance. 2) Continue or take no action. FISCAL IMPACT: This ordinance will result in minimal costs for enforcement of the water waste standards. However, there are provisions for fines and cost recovery for violations of the proposed ordinance. ATTACHMENTS: A. Ordinance No. 09-22 B. WRCOG/Water Task Force Handout — Water Efficient Landscape Ordinance Page 3 of 3 STATE OF CALIFORNIA) ORDINANCE NO. 09-22 COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, ADDING CHAPTER 15.44 TO TITLE 15 (BUILDINGS AND CONSTRUCTION) OF THE MUNICIPAL CODE, ESTABLISHING LANDSCAPE WATER USE EFFICIENCY REQUIREMENTS. The San Jacinto Municipal Code is hereby amended to add Chapter 15.44 to Title 15 (Buildings and Construction) to read as follows: Section 1. SHORT TITLE. This Ordinance shall be known as the "Landscape Water Use Efficiency Ordinance". Section 2. INTENT. It is the intent of the City Council in adopting this Ordinance to: A. Establish provisions for water management practices and water waste prevention; B. Establish a structure for planning, designing, installing, maintaining, and managing water efficient landscapes in new construction and rehabilitated projects; C. To reduce the water demands from landscapes without a decline in landscape quality or quantity; D. To retain flexibility and encourage creativity through appropriate design; E. To assure the attainment of water-efficient landscape goals by requiring that landscapes not exceed a maximum water demand of seventy percent (70%) of its reference evapotranspiration (ET 0 ) or any lower percentage as may be required by water purveyor policy or state legislation, whichever is stricter; F. To eliminate water waste from overspray and/or runoff; G. To achieve water conservation by raising the public awareness of the need to conserve water through education and motivation to embrace an effective water demand management program; and H. To implement the requirements to meet the State of California Water Conservation in Landscaping Act 2006 and the California Code of Regulations Title 23, Division 2, Chapter 2.7. Section 3. DEFINITIONS. The terms used in this ordinance have the meaning set forth below: 1 A. "backfilling" means to refill an excavation, usually with excavated material. B. "backflow prevention device" means a safety device used to prevent pollution or contamination of the water supply due to the reverse flow of water from the irrigation system. C. "check valve" or "anti-drain valve" means a valve located under a sprinkler head or other location in the irrigation system to hold water in the system to prevent drainage from the sprinkler heads when the system is off. D. "established landscape" means the point at which plants in the landscape have developed significant root growth into the site. Typically, most plants are established after one or two years of growth. E. "Estimated Annual Water Use" or "EAWU" means estimated total water use per year as calculated by the formula contained in Section 5.B.12.n. F. "hydrozone" means a portion of the landscaped area having plants with similar water needs. A hydrozone may be irrigated or non-irrigated. G. "invasive species" are non-indigenous species (e.g., plants or animals) that adversely affect the habitats they invade economically, environmentally, or ecologically. Lists of invasive species are included within the Western Riverside County Multi-Species Habitat Conservation Plan (incorporated by reference). In addition, for the purposes of this ordinance, invasive species include other locally invasive species as further defined by a local lead agency. H. "landscape architect" means a person who holds a license to practice landscape architecture in the state of California (Government Code Section 5615). "landscaped area or "LA" means all of the planting areas, turf areas, and water features in a landscape design plan subject to the Maximum Applied Water Allowance (MAWA) calculation. The landscape area does not include footprints of buildings or structures, sidewalks, driveways, parking lots, decks, patios, gravel or stone walks, other pervious or impervious hardscapes, and other non-irrigated areas designated for non-development (e.g., open spaces and existing native vegetation). J. "local water purveyor" means any entity, including a public agency, city, county or private water company that provides retail water service to customers in San Jacinto. K. "low volume irrigation" means the application of irrigation water at low pressure through a system of tubing or lateral lines and low-volume emitters such as drip, drip lines, and bubblers. Low volume irrigation systems are specifically designed to apply small volumes of water slowly at or near the 2 root zone of plants. L. "Maximum Applied Water Allowance" or "MAWA" means the upper limit of annual applied water allowed for the established landscaped area. M. "overhead sprinkler irrigation systems" means systems that deliver water through the air (e.g. , pop ups, impulse sprinklers, spray heads and rotors, etc.). N. "reference evapotranspiration" or "ET o " means a standard measurement of environmental parameters which affect the water use of plants. ET ° is given in inches per day, month, or year. Reference evapotranspiration is used as the basis of determining the Maximum Applied Water Allowances so that regional differences in climate can be accommodated. Reference evapotranspiration numbers shall be taken from the most current EvapoTranspiration Zones Map by the California Department of Water Resources. For geographic areas not covered by the EvapoTranspiration Zones Map, data from nearby areas shall be used. 0. "rehabilitated landscapes" means any re-landscaping project that requires a permit, plan check, or design review, and/or would meet the requirements of Section 4. P. "special landscape area" means an area of the landscape dedicated to edible plants, areas irrigated with recycled water, and publicly accessible areas dedicated to active play such as parks, sports fields, golf courses, where turf provides a playing field or where turf is needed for high traffic activities. Q. "temporarily irrigated" means irrigation for the purposes of establishing plants, or irrigation which will not continue after plant establishment. Temporary irrigation is for a period of six months or less. R. "water intensive landscaping" means a landscape with a WUCOLS plant factor of 0.7 or greater. S. "WUCOLS" means the publication entitled "Water Use Classification of Landscape Species" by the U.C. Cooperative Extension (1999 or most current version). Section 4. APPLICABILITY. A. The water-efficient landscape requirements contained in this Ordinance shall be applicable to all new construction landscapes which are homeowner- provided and or homeowner-hired in single-family and multi-family projects with a total project landscape area equal to or greater than 5,000 square feet requiring a building or landscape permit, plan checks or design review and/or all other landscape projects with a landscape area equal to or greater than 2,500 square feet subject to discretionary permits, plan checks, design 3 reviews, and/or approvals. B. In the event Covenants, Conditions and Restrictions are required by the City for any permit subject to this Ordinance, a condition shall be incorporated into any project approval prohibiting the use of water-intensive landscaping and requiring the use of low water use landscaping pursuant to the provisions of this Ordinance in connection with common area/open space landscaping. Additionally, such a condition shall also require the Covenants, Conditions and Restrictions to incorporate provisions concerning landscape irrigation system management and maintenance. This Ordinance shall not be construed as requiring landscaping of common areas or open space that is intended to remain natural. Covenants, Conditions, and Restrictions shall not prohibit use of low-water use plants. Covenants, Conditions, and Restrictions shall not prohibit the replacement of turf with less water intensive plant species. C. Section 8 of this Ordinance applies to existing properties with landscape areas one acre or greater in size or properties served by a dedicated landscape irrigation meter. D. Recognizing the special landscape needs of cemeteries, new and rehabilitated cemeteries are limited to sections 6.A, 6.B, and 6.C. Existing cemeteries are limited to Section 8. E. The following are exempt from the provisions of this chapter: 1. Any project with a total landscaped area less than 2,500 square feet; 2. Registered local, state or federal historical sites; 3. Ecological restoration projects that do not require a permanent irrigation system and have an establishment period of less than 3 years; 4. Mined-land reclamation projects that do not require a permanent irrigation system: and 5. Botanical gardens and arboretums open to the public. Section 5. LANDSCAPE DOCUMENTATION PACKAGE REQUIREMENTS. An applicant proposing any new or rehabilitated landscape subject to this ordinance (Section 4) shall, prior to issuance of a building permit, prepare and submit to the Planning Director for review and approval documentation including the following: 1. Project Information (Section 5.A); 2. Planting Plan (see Section 5.B); 3. Irrigation Design Plan (see Section 5.C); 4. Soil Management Plan (see Section 5.D); and 5. Grading Design Plan (see Section 5.E). An applicant proposing any new landscape that is subject to this ordinance (Section 4) and designated for recycled water use, is advised that recycled water irrigation systems 4 will entail additional coordination with the local water purveyor, the land use agency and the maintenance entity's standards, approvals, and implementation requirements. Therefore, applicants shall consult with the appropriate water purveyor early in the development review process to ensure that future recycled water facilities meet the projected demand and that subsequent landscape plans comply with the applicable standards, approvals, and implementation requirements of the local water purveyor, land use agency, and maintenance entity. Water systems for common open space areas shall use non-potable water if approved facilities are made available by the water purveyor. Provisions for a non-potable water system shall be provided within the landscape plan. Water systems designed to utilize non-potable water shall be designed to meet all applicable standards of the California Regional Water Quality Control Board and the Riverside County Health Department. A. PROJECT INFORMATION 1. Date 2. Applicant and applicant contact information 3. Project owner and contact information 4. Project address including parcel and lot numbers 5. Total landscape area (sq. ft.) 6. Project type (e.g., new, rehabilitated, public, private) 7. Water supply (e.g., potable, well, recycled). Use of recycled water is encouraged. 8. Applicant signature and date with statement "I agree to comply with the requirements of Ordinance 09-22 and submit a complete Landscape Documentation Package" B. PLANTING PLAN REQUIREMENTS 1. The "Riverside County Guide to California Friendly Landscaping" (Landscaping Guide) is hereby incorporated by reference to assist with developing water efficient landscapes. 2. Plant types shall be grouped together in regards to their water, soil, sun and shade requirements and in relationship to the buildings. Plants with different water needs shall be irrigated separately. Plants with the following classifications shall be grouped accordingly: high and moderate, moderate and low, low and very low. Deviation from these groupings shall not be permitted. 3. Trees for shade shall be provided for residential, commercial and industrial buildings, parking lots and open space areas. These trees can be deciduous or evergreen and are to be incorporated to provide natural cooling opportunities for the purpose of energy and water conservation. 4. Plants shall be placed in a manner considerate of solar orientation to maximize summer shade and winter solar gain. 5. Plant selection for projects in fire-prone areas shall address fire safety and prevention. A defensible space or zone around a building or structure is required per Public Resources Code Section 4291(a) and 5 (b). Fire-prone plant materials and highly flammable mulches shall be avoided. 6. Invasive species of plants shall be avoided especially near parks, buffers, greenbelts, water bodies, and open spaces because of their potential to cause harm to environmentally sensitive areas. 7. All exposed surfaces of non-turf areas within the developed landscape area shall be mulched with a minimum three inch (3") layer of material, except in areas with groundcover planted from flats where mulch depth shall be one and one half inches (1 IA"). 8. Stabilizing mulching products shall be used on slopes. 9. Turf areas shall be used in response to functional needs and in compliance with the water budget. 10. Decorative water features shall use recirculating water systems. 11.Where available, recycled water shall be used as the source for irrigation and decorative water features. 12. Planting Plans shall identify and site the following: a. New and existing trees, shrubs, ground covers, and turf areas within the proposed landscape area; b. Planting legend indicating all plant species by botanical name and common name, spacing, and quantities of each type of plant by container size; c. Designation of hydrozones; d. Area, in square feet, devoted to landscaping and a breakdown of the total area by landscape hydrozones; e. Property lines, streets, and street names; Building locations, driveways, sidewalks, retaining walls, and other hardscape features; Appropriate scale and north arrow; Any special landscape areas; Type of mulch and application depth; Type and surface area of any water features; Type and installation details of any applicable stormwater best management practices; Planting specifications and details, including the recommendations from the soils analysis, if applicable. m. Maximum Applied Water Allowance: i. Planting Plans shall be prepared using the following Water Budget Formula: MAWA (in gallons)= (ET 0 )(0.62)[0.7 x LA+0.3 x SLA] where ET0 is reference evapotranspiration SLA is the amount of special landscape area in square feet LA is total /andscape area (including the SLA) in square feet ii For the purposes of determining the Maximum Applied Water Allowance, average irrigation efficiency is assumed to be 0.71. Irrigation systems shall be designed, maintained, and managed to meet or exceed an average irrigation efficiency of 0.71. n. Estimated Annual Water Use (EAWU): I. EAWU for a given hydrozone is calculated as follows: EAWU (in gallons) = (ET 0)(0.62)[((PFxHA)/lE) +SLAJ where ET° is reference evapotranspiration PF is Plant Factor HA is hydrozone area in square feet IE is irrigation efficiency (minimum 0.71) SLA is the amount of special landscape area in square feet ii. Landscaping plans shall provide EAWU (in the same units as the MAWA) for each valve circuit in the irrigation hydrozone. The sum of all EAWU calculations shall not exceed the MAWA for the project. iii. The plant factor used shall be from WUCOLS. The plant factor for low water use plants range from 0 to 0.3, for moderate water use plants range from 0.4 to 0.6, and for high water use plants range from 0.7 to 1.0. iv. The plant factor calculation is based on the proportions of the respective plant water uses and their plant factor, or the plant factor of the higher water using plant is used. v. The surface area of a water features shall be included in the high water use hydrozone area of the water budget calculation and temporarily irrigated areas in the low water use hydrozone. 13. Planting Plans and Irrigation Plans (Section 5.0) shall be drawn at the same size and scale 14.The Planting Plan shall be prepared by a Landscape Architect licensed by the State of California. C. IRRIGATION DESIGN PLAN REQUIREMENTS. 1 The "Riverside County Guide to California Friendly Landscaping" (Landscaping Guide) is hereby incorporated by reference to assist the applicant in designing, constructing, and maintaining an efficient irrigation system. 2. Irrigation systems shall be designed, maintained, and managed to meet or exceed an average irrigation efficiency of 0.71. 3. All irrigation systems shall be designed to prevent runoff, over-spray, lowhead drainage and other similar conditions where water flows off- 7 site on to adjacent property, non-irrigated areas, walk, roadways, or structures. Irrigation systems shall be designed, constructed, managed, and maintained to achieve as high an overall efficiency as possible. The irrigation system shall be designed to ensure that the dynamic pressure at each emission device is within the manufacturer's recommended pressure range for optimal performance. 4. Landscaped areas shall be provided with a smart irrigation controller which automatically adjusts the frequency and/or duration of irrigation events in response to changing weather conditions unless the use of the property would otherwise prohibit use of a timer. The planting areas shall be grouped in relation to moisture control zones based on similarity of water requirements (i.e., turf separate from shrub and groundcover, full sun exposure areas separate from shade areas, top of slope separate from toe of slope). Additional water conservation technology may be required, where necessary, at the discretion of the Planning Director. 5. Water systems for common open space areas shall use non-potable water, if approved facilities are made available by the water purveyor. Provisions for the conversion to a non-potable water system shall be provided within the landscape plan. Water systems designed to utilize non-potable water shall be designed to meet all applicable standards of the California Regional Water Quality Control Board and the Riverside County Health Department. 6. Separate valves shall be provided for separate water use planting areas, so that plants with similar water needs are irrigated by the same irrigation valve. All installations shall rely on highly efficient state of the art irrigation systems to eliminate runoff and maximize irrigation efficiency as required by the Landscaping Guide. 7. Static water pressure, dynamic or operating pressure and flow reading of the water supply shall be measured. These pressure and flow measurements shall be conducted at the design stage. If the measurements are not available at the design stage, the measurements shall be conducted at the installation. 8. The capacity of the irrigation system shall not exceed: a. the capacity required for peak water demand based on water budget calculations; b. meter capacity; or c. backflow preventer type and device capacity 9. Sprinkler heads and other emission devices shall have matched precipitation rates, unless otherwise directed by the manufacturer. 10. In mulched planting areas, the use of low volume irrigation is required to maximize water infiltration into the root zone. 11 Slopes greater than 25% shall not be irrigated with an irrigation system with a precipitation rate exceeding 0.75 inches per hour. This restriction may be modified if the landscape designer specifies an alternative design or technology, as part of the Landscape Documentation Package, and clearly demonstrates no runoff or erosion will occur. Prevention of runoff and erosion must be confirmed during the irrigation audit. 12. Long-narrow, or irregularly shaped areas including turf less than eight (8) feet in width in any direction shall be irrigated with subsurface irrigation or low-volume irrigation technology. 13. Overhead irrigation shall not be permitted within 24 inches of any non- permeable surface. There are no restrictions on the irrigation system type if the landscape area is adjacent to permeable surfacing and no overspray and runoff occurs. 14. Overhead irrigation shall be limited to the hours of 8 p.m. to 9 a.m. 15. All irrigation systems shall be equipped with the following: a. A smart irrigation controller as defined in Section 5.C.4 of this Ordinance; b. A rain sensing device to prevent irrigation during rainy weather; c. Anti-drain check valves installed at strategic points to minimize or prevent low-head drainage; d. A manual shut-off valve shall be required as close as possible to the point of connection of the water supply, to minimize water loss in case of an emergency or routine repair; e. A pressure regulator when the static water pressure is above or below the recommended operating pressure of the irrigation system; f. Backflow prevention devices; and g. Riser protection components for all risers in high traffic areas. 16. Dedicated landscape meters shall be required for all projects greater than 2,500 sq. ft. except single-family residences. 17. Irrigation Design Plans shall identify and site the following: a. Hydrozones. I. Each hydrozone shall be designated by number, letter or other designation ii A Hydrozone Information Table shall be prepared for each hydrozone b. The areas irrigated by each valve; c. Irrigation point of connection (POC) to the water system; d. Static water pressure at POC; e. Location and size of water meter(s), service laterals, and backflow preventers; f. Location, size, and type of all components of the irrigation system, including automatic controllers, main and lateral lines, valves, sprinkler heads and nozzles, pressure regulator, drip and low volume irrigation equipment; g. Total flow rate (gallons per minute), and design operating pressure (psi) for each overhead spray and bubbler circuit, and total flow rate (gallons per hour) and design operating pressure (psi) for each drip and low volume irrigation circuit; h. Precipitation rate (inches per hour) for each overhead spray circuit; Irrigation legend with the manufacturer name, model number, and general description for all specified equipment, separate symbols for all irrigation equipment with different spray patterns, spray radius, and precipitation rate; Irrigation system details for assembly and installation; k. Recommended irrigation schedule for each month, including number of irrigation days per week, number of start times (cycles) per day, minutes of run time per cycle, and estimated amount of applied irrigation water, expressed in gallons per month and gallons per year, for the established landscape; and I. Irrigation Design Plans shall contain the following statement, "I agree to comply with the criteria of the ordinance and to apply them for the efficient use of water in the Irrigation Design Plan" 18 For each valve, two irrigation schedules shall be prepared, one for the initial establishment period of six months and one for the established landscape, which incorporate the specific water needs of the plants and turf throughout the calendar year. 19. Irrigation Plans and Planting Plans (Section 5.B) shall be drawn at the same size and scale D. SOIL MANAGEMENT PLAN REQUIREMENTS. 1. Prior to issuance of a building permit, the project applicant or his/her designee shall: a. perform a preliminary site inspection; b. determine the appropriate level of soil sampling and sampling method needed to obtain representative soil sample(s); c. conduct a soil probe test to determine if the soil in the landscape area has sufficient depth to support the intended plants; and d. obtain appropriate soil sample(s). 2. The project applicant or his/her designee shall submit soil sample(s) to laboratory for analysis and recommendation. The soil analysis may include: a. soil texture; b. infiltration rate determined by laboratory test or soil texture infiltration rate tables; c. pH; d. total soluble salts; e. sodium; and f. recommendations. 3. The project applicant or his/her designee shall prepare documentation describing the following: 1 0 a. soil type; b. identification of limiting soil characteristics; c. identification of planned soil management actions to remediate limiting soil characteristics; and d. Submit the soil analysis report and documentation verifying implementation of soil analysis report recommendations to the City pursuant to the requirements of Section 7.0 Certificate of Completion. E. GRADING DESIGN PLAN REQUIREMENTS. 1. The Landscape Documentation Package shall include precise grade elevations prepared for the project by a licensed civil engineer. Section 6. LANDSCAPE IRRIGATION AND MAINTENANCE. This section applies to all landscape projects subject to this ordinance (Section 4). A. The "Riverside County Guide to California Friendly Landscaping" (Landscaping Guide) is hereby incorporated by reference to assist the applicant in implementing landscape maintenance to ensure water use efficiency. B. Two irrigation schedules shall be prepared, one for the initial establishment period of six months and one for the established landscape, which incorporate the specific water needs of the plants and turf throughout the calendar year. The irrigation schedule shall take into account the particular characteristics of the soil; shall be continuously available on site to those responsible for the landscape maintenance; and shall contain specifics as to optimum run time and frequency of watering, and irrigation hours per day. The schedule currently in effect shall be posted at the controller. C. A regular maintenance schedule and Certificate of Completion shall be submitted to the Planning Director, property owner, and water purveyor. A regular maintenance schedule shall include, but not be limited to, routine inspection, adjustments, and repair of the irrigation system and its components; aerating and dethatching turf areas; replenishing mulch; fertilizing; pruning, weeding in all landscape areas and removing any obstruction to irrigation devices. Repair of all irrigation equipment shall be done with the originally installed components or equivalent. D. All model homes that are landscaped shall use signs and written information to demonstrate the principles of water efficient landscapes described in this ordinance. E. Information shall be provided to owners of new, single-family residential homes regarding the design, installation, management, and maintenance of water efficient landscapes. Section 7. COMPLIANCE/PLAN SUBMITTAL PROCESS. The Planning Director or designee shall have the duty and authority to administer and enforce this ordinance. 1 1 A. As part of the land development process and prior to issuance of a building permit, the City shall: 1. Provide the project applicant with the ordinance and procedures for permits, plan checks, or design reviews; 2. Review the Landscape Documentation Package (Section 5) submitted by the project applicant; 3. Approve or reject the Landscape Documentation Package; and 4. Issue a permit or approve the plan check or design review for the project applicant. B. As part of the land development process and prior to issuance of a building permit , the project applicant shall: 1. Submit a Landscape Documentation Package to the City for review and approval by the Planning Director, The Planting Plan, Irrigation Plan, and Soils Management Plan shall be reviewed by an independent licensed landscape architect to ensure that all components of the Plans adhere to the requirements of this Ordinance. The licensed landscape architect shall sign the Plans verifying that the Plans comply with this Ordinance. Any Plans submitted without the signature of a licensed landscape architect shall not be accepted for review. C. Prior to issuance of a certificate of occupancy or final inspection for a project subject to this ordinance, a regular maintenance schedule and a Certificate of Completion shall be submitted to the Planning Director certifying that the landscaping has been completed in accordance with the approved Planting, Irrigation, Soil Management, and Grading Design plans for the project. The Certificate of Completion shall be signed by a licensed landscape architect and shall indicate: 1. Date 2. Project information a. Project name b. Project applicant name, telephone, mailing address c. Project address and location d. Property owner name and mailing address 3. Prior to backfilling, evidence that the party responsible for irrigation installation conducted a preliminary field inspection of the irrigation system (evidence of field inspection shall be attached). 4. The landscaping has been installed in conformance with the approved Planting and Irrigation Plans; 5. Irrigation audit report performed by a certified irrigation auditor after project installation (audit report shall be attached) 6. The smart irrigation controller has been set according to the irrigation schedule; 7. The irrigation system has been adjusted to maximize irrigation efficiency and eliminate overspray and runoff; and 8. A copy of the approved Landscape Documentation Package (Section 5), the irrigation schedule (Section 6.B), and the maintenance schedule 12 (Section 6.0) has been given to the property owner and local water purveyor. 9. Verification that the maintenance schedule has been provided to the Planning Director D. At a minimum, all landscape irrigation audits shall comply with the "Irrigation Association Certified Landscape Irrigation Auditor Training Manual (2004 or most current) and shall be conducted by a certified landscape irrigation auditor. E. The Planning Director or his/her designee shall have the right to enter upon the project site at any time before, during and after installation of the landscaping, to conduct inspections for the purpose of enforcing this Ordinance. Section 8. LANDSCAPE WATER USE EFFICIENCY ENFORCEMENT. The City of San Jacinto will rely on water purveyors to enforce landscape water use efficiency requirements. The City shall coordinate with local water purveyors and identify programs that enhance and encourage landscape water use efficiency such as: 1. tiered water rate structure, or 2. allocation-based conservation water pricing structure, or 3. a rate structure at least as effective as the above options or 4. irrigation audits and/or irrigation surveys 5. penalties for water waste. A. RESTRICTIONS. The following water conservation requirements are intended to avoid water waste, are effective at all times, and are permanent. 1. Limits on Watering Hours: Watering or irrigating of lawn, landscape or other vegetated area with potable water is prohibited between the hours of 9:00 a.m. and 5:00 p.m. on any day, except by use of a hand- held bucket or similar container, a hand-held hose equipped with a positive self-closing water shut-off nozzle or device, or for very short periods of time for the express purpose of adjusting or repairing an irrigation system. Overhead irrigation shall be limited to the hours of 8 pm to 9 am. 2. No Excessive Water Flow or Runoff: Watering or irrigating of any lawn, landscape or other vegetated area in a manner that causes or allows excessive water flow or runoff onto an adjoining sidewalk, driveway, street, alley, gutter or ditch is prohibited. 3. No Washing Down Hard or Paved Surfaces: Washing down hard or paved surfaces, including but not limited to sidewalks, walkways, driveways, parking areas, tennis courts, patios or alleys, is prohibited except when necessary to alleviate safety or sanitary hazards, and then only by use of a hand-held bucket or similar container, a hand- held hose equipped with a positive self-closing water shut-off device, a low-volume, high-pressure cleaning machine equipped to recycle any water used, or a low-volume high-pressure water broom. 13 4. Obligation to Fix Leaks, Breaks or Malfunctions: Excessive use, loss or escape of water through breaks, leaks or other malfunctions in the water user's plumbing or distribution system for any period of time after such escape of water should have reasonably been discovered and corrected and in no event more than seven (7) days (or 72 hours of receiving notice from the City), is prohibited. 5. Ordinance No. 09-16, "Water Conservation And Water Supply Shortage Program And Regulations", adopted by the City on May 21, 2009 into the San Jacinto Municipal Code as Section 13.04.070 of Chapter 13.04, is hereby incorporated by reference ,„ B. Landscape Meter Requirements. 1. A separate dedicated meter is required for landscape areas greater than or equal to 2,500 square-feet 2. The efficient use of water should be considered in the design of any new landscape area. The MAWA will be calculated for customers that request a new account using the formula in section 5.B.12.m of this ordinance. 3. Prior to the issuance of a meter, the new customer shall calculate the EAWU for each landscape area using the formula provided in 5.B.12.n. The EAWU shall be submitted to the local water purveyor for review. For the new meter to be issued, the calculated water budget for the landscape area cannot exceed the MAWA calculated in 5.B.12.m of this ordinance. 4. New accounts that have to comply with equivalent or more stringent water use efficiency measures imposed by another jurisdiction, do not need to comply with the requirements of this section of the Ordinance, but do need to provide information about the landscape area to the local water purveyor. C. ENFORCEMENT. In addition to the City of San Jacinto Water Department, Eastern Municipal Water District and Lake Hemet Municipal Water District are water purveyors serving the City. The City recognizes and supports measures employed by these agencies to ensure water is being used efficiently. Section 9. DATE OF EFFECT. The provisions of this ordinance shall take effect thirty (30) days after its adoption. Introduced at a regular meeting of said City Council on the 5th day of November, 2009, by the following vote: MOVED, PASSED, AND ADOPTED at a regular meeting of the City Council on the 19th day of November, 2009 by the following vote: 14 Ayes: Nays: Absent: Abstain: City of San Jacinto By Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP Jeffrey S. Ballinger, City Attorney CERTIFICATE STATE OF CALIFORNIA) COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) I, Barry McClellan, hereby certify that the foregoing is a true copy of Ordinance No. duly adopted by the City Council of City of San Jacinto, California at a regular meeting thereof held the day of , 2009. WITNESS my hand and official seal of the City of San Jacinto this day of , 2009. Barry McClellan, City Clerk 15 WATER RESERVE LEVELS Die /Le '0 MODEL WA TER ' lc/11'1\17' Oki) WRCOG Executive Committee June 8, 2009 So How Did We Get Here? Drought- Regulatory & Natural • Largest court-ordered water transfer restrictions in state history —35% loss a Reduction is equivalent to the water used by the City of Riverside and the City of Corona in one year combined. • Multiple straight years of below-average rainfall • Very low snowmelt runoff — 55% of normal € Over-allocation of Colorado River June 2008: Governor Orders Immediate Action to Address Drought Proposed Action: • 20% reduction goal in water use • Expand water conservation • Release grant funds for water infrastructure • Increase water transfers to areas of demand State Legislation AB2711 — Enacted in 2004 • Water suppliers adopt water conserving rate structure • Require dedicated landscape water meter • ET0 factor reduced to 0.7 • Enforce and monitor compliance with the State Model Landscape Ordinance • Local ordinances be "as effective as" the State Model Ord. AB1881 — Enacted in 2006 • Requires local agencies to adopt the State Model Ord. or a local ordinance that is "as effective as" State ordinance by January 1,2010 • ET 0 factor reduced to 0.7 • DWR is required to report back to the Legislature by 2011 on status of local agency ordinances AB 1881: Burden on Local Agencies to Comply by January 1, 2010 Land Use Agency Options: Option 1: Do nothing - State Model Water Efficient Landscape Ord. takes effect in jurisdiction on January 1, 2010 Option 2: Adopt own Ord. and findings before January 1, 2010 that is "as effective as" the State's Model Ord. Option 3: Adopt the Local Model Landscape Water Use Efficiency Ord. and findings by the Fall of 2009 Benefits of Water Task Force Efforts • Collaborative approach • Heavy lifting already done a Logical enforcement mechanism — based on water agency relationship with end user • Provided to jurisdictions free- of-charge Local Model Landscape Ordinance • Builds on 2006 WTF Ordinance • Meets requirements of AB1881 • Eliminates duplicative tasks • Regulates water use on future and existing landscapes • Promotes regional consistency • Incorporates required elements of MWD Water Conservation Ordinance • Ensures water supply Tool Box Method • "Tool box" Ord. that will include reconunended findings and CEQA documentation • Model Ordinance identifies essential tools for adoption by each entity: 0 = City/County Land Use Agency 0 = Water Agency <> = City Providing Retail Water Service Component parts make a "whole" strategy to reduce landscape water demands Local Model Ord. Components Required By State • Applicability: /Homeowner hired projects > 5,000 ft , New & rehab. landscape projects 2,500 ft" • .7 ETo for new and .8 ETo for existing landscapes • Specific landscape documentation requirements: planting plan, irrigation plan, soils mgt. plan, grading plan • Water budgets • Eliminate overspray and runoff • Enforcement Local Model Ord. Components Required By 111WD • Limits on watering hours • No excessive water flow or run- off • No washing down paved surfaces • Obligation to fix leaks • Enforcement Exemptions! Considerations Exemptions • Landscapes less than 2,500 ft2 • Homeowner installed projects less than 5,000 ft2 • Registered historic sites • Ecological restoration projects • Public botanic gardens & arboretums Unique Considerations • Cemeteries Local Model Ord. Critical Path 239,509.06 30,436.61 161,413.99 231,420.00 5,507.54 500,000.00 1,284,831.64 1,631,559.47 456,108.67 6,136.20 251,929.53 238,693.00 730,069.70 - 233,500.00 17,345.00 27,760.00 47,000.00 950,525.00 - - 481,668.05 490,227 .73 14,745.00 1,000,000.00 4,850,163.99 6,466,703.15 199,68356 54,855.00 56,942.84 450,000.00 500,000.00 54,723.14 600,000.00 CITY OF SAN JACINTO CAPITAL PROJECTS - Actual Carryover from FY 2008/2009 CIP Book Project # Page # Project Description Carry-Over Gen Fund FY 08-09 Fund 010 Meas "A" Traffic Congestion Traffic Safety Flood Control Traffic Signal Water Cap Sewer Imp Sewer Indian Gaming Fund 022 Fund 023 Fund 024 Fund 039 Fund 041 Fund 051 Fund 053 Fund 055 Fund 068 Hwy 79 Local Trans Regional TP Fund 072 Fund 075 Fund 076 TUMF RDA Fund 083 Fund 096 LMI Housing DIF:Police DIF:Park Imp DIF:Streets DIF:Signals Fund 099 Fund 111 Fund 128 Fund 141 Fund 149 Total Funding Difference 382,546.22 02-019 T-9 Misc Traffic Cont Devices 178,740.30 87,490.30 02-024 D-7 Drainage Plan Updates 276,836.34 02-041 W-3 Meter Change Out VVTR 821.24 03-054 D-6 SJRiver Levee Prelim Eng 394,768.86 03-058 F-3 Main Street Comm'l Facade 144,406.55 03-062 F-4 Housing Rehab Program 662,950.52 04-077 P-4 Estudillo Mansion Grants 452,256.83 452,256.83 04-089 P-2 Skyview Park Drainage 16,648.72 04-093 F-5 Senior Home Repair Grant 26,301.90 05-103 F-2 Misc Low Housing Projects 138,608.77 05-104 F-1 Mansion Fed Earmark Grant (74,815.93) (74,815.93) 05-106 S-1 DeAnza Drive Improvements 162,223.00 162,223.00 05-111 D-5 Purch Lyon St Flood Basin 87,050.42 05-119 R-1 Manhole Rehabilitation 20,161.15 05-124 S-3 Ramona Expwy Gap Closure 3,036.82 05-127 Lighted Street Signs 06-129 F-14 Storage Facility Improv 3,000.00 3,000.00 06-130 S-4 Lyon Ave Widening 75,215.18 75,215.18 06-134 D-4 Drain Improv Sheriff St. 06-135 T-4 Signalization St./ Idyllwild 06-136 D-3 Line "G" Flood Control PJ 1,000,000.00 06-145 S-5 Esplanade TUMF Project 4,850,163.99 06-146 S-6 Sanderson TUMF Project 6,466,703.15 06-147 S-7 Idyllwild Sidewalk 06-149 W-4 New Reservoir (Study) 199,683.56 07-002 F-6 City Hall Demolition 87,910.86 33,055.86 07-008 S-8 Hewitt Street Improvement 306,487.19 306,487.19 07-009 S-9 Washington Avenue Improve 56,942.84 07-011 D-1 Hewitt Street Storm Drain 450,000.00 07-012 D-2 Line "J" Gap Closure 500,000.00 07-013 Santa Fe / Esplanade Traf Sig 07-014 R-2 Sewer Master Plan Improve 54,723.14 07-015 W-2 Bath Well Drill Replacement 07-016 W-5 Lake Park Elevated Tank 07-017 T-5 Sanderson/7th/Cottonwood TS 239,509.06 07-019 W-6 Grand Well Treatment Facility 30,436.61 07-021 W-1 Major Improvement-Well Sites 07-022 F-8 Document Imaging Project 105,111.52 105,111.52 07-023 F-7 Community Center Rehab 5,507.54 08-002 S-19 Ramona Expwy Pavement Rehab 1,503,681.89 900,000.00 210,847.90 08-003 T-1 Sanderson/Ramona Expwy Intersc 2,131,559.47 08-004 T-2 Hewitt/Commonwealth Signalizatio 08-005 T-3 Traffic Signal Reimb to Developer 6,136.20 08-007 Police Station Exterior Imp. 08-009 5R79 Relinquishment 1,284,831.64 08-010 S-20 Ramona X-Sanderson-State 1,456,108.67 1,000,000.00 08-011 SB621 - Roadway Maintenance 08-012 F-9 Police Station Expansion 531,331.53 40,709.00 09-001 S-21 Sanderson Pavement Rehab 750,000.00 750,000.00 09-002 S-22 Cottonwood Widening w/ of State 730,069.70 09-003 T-11 Kirby & Cottonwood Signal 297,845.00 09-004 T-12 City wide speed survey 27,760.00 09-005 W-7 Misc master plan waterline upgrad( 950,525.00 09-006 R-3 De Anza master plan sewer upsiv 481,668.05 09-007 S-23 2009 Downtown Sidewalk 490,227.73 09-008 F-10 Entry Monuments 30,000.00 15,255.00 09-009 Sallee Park Parking Lot 09-010 F-11 Down Payment Assistance 600,000.00 09-011 F-12 AMR Penalties Fund 23,519.57 23,519.57 09-012 5-11 2009 Downtown Pavement Rehab 479,700.48 479,700.48 09-013 F-13 Rancho San Jac Improvements 32,567.80 32,567.80 09-015 S-24 7th Street Inffil Improvements 382,546.22 178,740.30 276,836.34 821.24 394,768.86 144,406.55 662,950.52 452,256.83 16,648.72 26,301.90 138,608.77 (74,815.93) 162,223.00 87,050.42 20,161.15 3,036.82 3,000.00 75,215.18 1,000,000.00 4,850,163.99 6,466,703.15 199,683.56 87,910.86 306,487.19 56,942.84 450,000.00 500,000.00 54,723.14 239,509.06 30,436.61 105,111.52 5,507.54 1,503,681.89 2,131,559.47 6,136.20 1,284,831.64 1,456,108.67 531,331.53 750,000.00 730,069.70 297,845.00 27,760.00 950,525.00 481,668.05 490,227.73 30,000.00 600,000.00 23,519.57 479,700.48 32,567.80 382,546.22 91,250.00 276,836.34 821.24 394,768.86 144,406.55 662,950.52 16,648.72 26,301.90 138,608.77 87,050.42 20,161.15 3,036.82 Total 29,111,469.08 3,162,075.32 1,440,548.38 17,345.00 119,010.00 2,313,886.76 292,645.26 1,181,466.41 536,391.19 20,161.15 413,343.52 1,784,831.64 56,942.84 231,420.00 13,407,572.10 1,104,510.68 ,427,861.19 238,693.00 16,648.72 1,112,615.92 233,500.00 29,111,469.08 CIP Continuing Appropriations 09-10.xls 10/08/2009- 10:21 AM 40,000.00 40,000.00 113,059.00 113,059.00 821.24 - 821.24 (461,451.42) (461,451.42) - (9,752.63) 13,686.02 13,686.02 (75,182.70) 16,648.72 1,044.00 1,000.00 (74,815.93) 162,223.00 5,299.00 (2,088.85) (70,080.27) - - (50,316.82) 5,299.00 - - (2,088.85) (70,080.27) 1,044.00 1,000.00 16,648.72 54,723.14 54,723.14 1,500.00 5,507.54 (0.00) 161,413.99 (57,048.55) 1,500.00 25,111.52 5,507.54 211,066.76 (57,048.55) (100,917.30) - (17,650.00) (100,917.30) (17,650.00) 2,760.00 17,345.00 47,000.00 251,929.53 238,693.00 (61,945.00) - (14,615.30) 490,622.53 (14,615.30) 2,400.00 2,760.00 (19,565.00) (8,299.45) (216,576.11) - (216,576.11) (3,255.00) - (19,565.00) (8,299.45) - (380.71) (20,884.52) 182,546.22 182,546.22 CITY OF SAN JACINTO CAPITAL PROJECTS - Variance between Budget and Actual Carryover from 200812009 CIP Book Project # Page # Project Description Carry-Over Gen Fund FY 08-09 Fund 010 Meas "A" Traffic Congestion Traffic Safety Flood Control Traffic Signal Water Cap Sewer Imp Sewer Indian Gaming Hwy 79 Local Trans Regional TP TUMF Fund 022 Fund 023 Fund 024 Fund 039 Fund 041 Fund 051 Fund 053 Fund 055 Fund 068 Fund 072 Fund 075 Fund 076 Fund 083 RDA LMI Housing DIF:Police DIF:Park Imp DIF:Streets DIF:Signals Fund 096 Fund 099 Fund 111 Fund 128 Fund 141 Fund 149 Total Funding Difference 02-019 T-9 Misc Traffic Cont Devices 40,000.00 02-024 D-7 Drainage Plan Updates 113,059.00 02-041 W-3 Meter Change Out WTR 821.24 03-054 D-6 SJRiver Levee Prelim Eng (461,451.42) 03-058 F-3 Main Street Comm'l Facade 03-062 F-4 Housing Rehab Program 04-077 P-4 Estudillo Mansion Grants 04-089 P-2 Skyview Park Drainage 04-093 F-5 Senior Home Repair Grant 05-103 F-2 Misc Low Housing Projects 05-104 F-1 Mansion Fed Earmark Grant 05-106 5-1 DeAnza Drive Improvements 05-111 D-5 Purch Lyon St Flood Basin 05-119 R-1 Manhole Rehabilitation 05-124 S-3 Ramona Expwy Gap Closure 05-127 Lighted Street Signs 06-129 F-14 Storage Facility Improv 06-130 S-4 Lyon Ave Widening 06-134 D-4 Drain Improv Sheriff St. 06-135 T-4 Signalization St./ Idyllwild 06-136 D-3 Line "G" Flood Control PJ 06-145 S-5 Esplanade TUMF Project 2,500.00 06-146 S-6 Sanderson TUMF Project 35,740.56 06-147 S-7 Idyllwild Sidewalk (0.00) 06-149 W-4 New Reservoir (Study) 07-002 F-6 City Hall Demolition 47,910.86 07-008 S-8 Hewitt Street Improvement (13,541.79) 07-009 S-9 Washington Avenue Improve 56,942.84 07-011 D-1 Hewitt Street Storm Drain 07-012 D-2 Line "J" Gap Closure 07-013 Santa Fe! Esplanade Traf Sig 07-014 R-2 Sewer Master Plan Improve 54,723.14 07-015 W-2 Bath Well Drill Replacement 07-016 W-5 Lake Park Elevated Tank 07-017 T-5 Sanderson/7th/Cottonwood TS 1,500.00 07-019 W-6 Grand Well Treatment Facility 07-021 W-1 Major Improvement-Well Sites 07-022 F-8 Document Imaging Project 25,111.52 07-023 F-7 Community Center Rehab 5,507.54 08-002 S-19 Ramona Expwy Pavement Rehab 211,066.76 08-003 T-1 Sanderson/Ramona Expwy Intersct (57,048.55) 08-004 T-2 Hewitt/Commonwealth Signalizatioi 08-005 T-3 Traffic Signal Reimb to Developer 08-007 Police Station Exterior Imp. 08-009 SR79 Relinquishment (100,917.30) 08-010 S-20 Ramona X-Sanderson-State (17,650.00) 08-011 SB621 - Roadway Maintenance 08-012 F-9 Police Station Expansion 490,622.53 09-001 S-21 Sanderson Pavement Rehab 09-002 S-22 Cottonwood Widening w/ of State 09-003 T-11 Kirby & Cottonwood Signal 09-004 T-12 City wide speed survey 09-005 W-7 Misc master plan waterline upgradE 09-006 R-3 De Anza master plan sewer upsize 09-007 S-23 2009 Downtown Sidewalk 09-008 F-10 Entry Monuments 09-009 Sallee Park Parking Lot 09-010 F-11 Down Payment Assistance 09-011 F-12 AMR Penalties Fund 09-012 S-11 2009 Downtown Pavement Rehab 09-013 F-13 Rancho San Jac Improvements 09-015 S-24 7th Street Infill Improvements 182,546.22 (6,944.14) 4,980.79 25,111.52 49,652.77 2,500.00 35,740.56 2,500.00 35,740.56 47,910.86 (13,541.79) 56,942.84 0.00 - (18,522.58) 56,942.84 54,855.00 (0.00) 13,686.02 (75,182.70) (65,430.07) 16,648.72 1,044.00 1,000.00 - (74,815.93) (74,815.93) 162,223.00 162,223.00 5,299.00 (2,088.85) (70,080.27) (50,316.82) (50,316.82) (14,615.30) 2,400.00 2,760.00 (19,565.00) (8,299.45) (216,576.11) 3,255.00 - (380.71) (380.71) (20,884.52) - (20,884.52) Total 269,698.23 (2,317.36) 28,768.25 17,345.00 42,760.00 118,358.00 48,500.00 (18,743.76) 46,423.69 (2,088.85) 413,343.52 (100,917.30) 38,420.26 (106,538.26) (630,672.62) 15,730.02 238,693.00 16,648.72 167,930.92 (61,945.00) 269,698.23 (0.00) CIP Continuing Appropriations 09-10.xls 10/08/2009 - 10:21 AM 144,406.55 9,752.63 51,250.00 163,777.34 25,257.90 137,608,77 649,264.50 856,220.28 138,740.30 163,777.34 - 056,220.20 144,406.55 649,264.50 527,439.53 25,257.90 137,608.77 22,250.00 81,751.42 73,117.09 81,751.42 22,250.00 73,117.09 3,000.00 125,532.00 0.00 450,000.00 500,000.00 18,522.58 199,683.56 1,000,000.00 1,000,000.00 4,847,663.99 6,430,962.59 199,683.56 40,000.00 320,028.98 450,000,00 500,000.00 4,847,663.99 6,430,962.59 238,009.06 238,009.06 30,436,61 30,436.61 80,000.00 231,420.00 1,292,615.13 500,000.00 1,688,608.02 2,188,608.02 6,136.20 6,136.20 1,385,748.94 473,758,67 1,385,748.94 1,473,758.67 25,000.00 970,090.00 489,967.50 706,803.84 18,000.00 744,685.00 295,445.00 40,709.00 750,000.00 744,685.00 295,445.00 25,000.00 970,090.00 489,967.50 706,803.84 30,000.00 600,000.00 200,000.00 600,000.00 23,900.28 500,585.00 32,567.80 200,000.00 CITY OF SAN JACINTO CAPITAL PROJECTS - Carryover from FY 2008/2009 Approved with 2009/2010 Budget CIP Book Project if Page if Project Description Carry-Over Gen Fund Meas "A" FY DO-09 Fund 010 Fund 022 Traffic Congest Traffic Safety Flood Control Traffic Signal Water Cap Sewer Imp Sewer Indian Gaming Fund 023 Fund 024 Fund 039 Fund 041 Fund 051 Fund 053 Fund 055 Fund 068 Hwy 79 Local Trans Regional TP Fund 072 Fund 075 Fund 076 TUMF RDA Fund 083 Fund 096 LMI Housing DIF:Police DIF:Park Imp DIF:Streets DIF:Signals Total Fund 099 Fund 111 Fund 128 Fund 141 Fund 149 Funding Difference 02-019 T-6 Traffic Control Devices/Studies 138,740.30 87,490.30 02-024 D-7 Drainage Plan Updates 163,777.34 02-041 W-3 Meter Change Out VVTR 03-054 D-6 SJRiver Levee Prelim Eng 856,220.28 03-058 F-3 Main Street Comm'l Facade 144,406.55 03-062 F-4 Housing Rehab Program 649,264.50 04-077 P-4 Estudillo Mansion Grants 527,439.53 517,686.90 04-089 P-2 Skyview Park Drainage 04-093 F-5 Senior Home Repair Grant 25,257.90 05-103 F-2 Misc Low Housing Projects 137,608.77 05-104 F-1 Mansion Fed Earmark Grant 05-106 S-1 DeAnza Drive Improvements 05-111 D-5 Lyon St Flood Basin 81,751.42 05-119 R-1 Manhole Rehabilitation 22,250.00 05-124 S-3 Ramona Expwy Gap Closure 73,117.09 05-127 Lighted Street Signs 06-129 F-14 Storage Facility Improv 3,000.00 3,000.00 06-130 S-4 Lyon Ave Widening 125,532.00 125,532.00 06-134 D-4 Drain Improv Sheriff St. 06-135 T-4 Signalization St./ Idyllwild 06-136 D-3 Line "G" Flood Control PJ 1,000,000.00 06-145 S-5 Esplanade TUMF Project 4,847,663.99 06-146 S-6 Sanderson TUMF Project 6,430,962.59 06-147 S-7 Idyllwild Sidewalk 0.00 06-149 W-4 New Reservoir Planning 199,683.56 07-002 F-6 City Hall Demolition 40,000.00 40,000.00 07-008 S-8 Hewitt Street Improvement 320,028.98 301,506.40 07-009 S-9 Washington Avenue Improve 07-011 D-1 Hewitt Street Storm Drain 450,000.00 07-012 D-2 Line "J" Gap Closure 500,000.00 07-013 Santa Fe! Esplanade Traf Sig 07-014 R-2 Sewer Master Plan Improve 07-015 W-2 Bath Well Drill Replacement 07-016 W-5 Lake Park Elevated Tank 07-017 T-5 Sanderson/7th/Cottonwood TS 238,009.06 07-019 W-6 Grand Well Treatment Facility 30,436.61 07-021 W-1 Major Improvement-Well Sites 07-022 F-8 Document Imaging Project 80,000.00 80,000.00 07-023 F-7 Community Center Rehab 08-002 S-19 Ramona Expwy Pavement Rehab 1,292,615.13 900,000.00 161,195.13 08-003 T-1 Sanderson/Ramona Expwy Intersc 2,188,608.02 08-004 T-2 Hewitt/Commonwealth Signalizatioi 08-005 T-3 Traffic Signal Reimb to Developer 6,136.20 08-007 Police Station Exterior Imp. 08-009 5R79 Relinquishment 1,385,748.94 08-010 S-20 Ramona X-Sanderson-State 1,473,758.67 1,000,000.00 08-011 SB621 - Roadway Maintenance 08-012 F-9 Police Station Expansion 40,709.00 40,709.00 09-001 S-21 Sanderson Pavement Rehab 750,000.00 750,000.00 09-002 S-22 Cottonwood Widening w/ of State 744,685.00 09-003 T-11 Kirby & Cottonwood Signal 295,445.00 09-004 T-12 City wide speed survey 25,000.00 09-005 W-7 Misc master plan waterline upgradE 970,090.00 09-006 R-3 De Anza master plan sewer upsiz( 489,967.50 09-007 S-23 2009 Downtown Sidewalk 706,803.84 09-008 F-10 Entry Monuments 30,000.00 12,000.00 09-009 Sallee Park Parking Lot 09-010 F-11 Down Payment Assistance 600,000.00 09-011 F-12 AMR Penalties Fund 23,900.28 23,900.28 09-012 S-11 2009 Downtown Pavement Rehab 500,585.00 500,585.00 09-013 F-13 Rancho San Jac Improvements 32,567.80 32,567.80 09-015 S-24 7th Street 'nth! Improvements 200,000.00 Total 28,841,770.85 3,164,392.68 1,411,780.13 76,250.00 2,195,528.76 244,145.26 1,200,210.17 489,967.50 22,250.00 1,885,748.94 18,522.58 231,420.00 13,514,110.36 1,735,183.30 1,412,131.17 944,685.00 295,445.00 28,841,770.85 0.00 CIP Continuing Appropriations 09-10.xls 10/08/2009 - 10:21 AM REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#: .51 SUBJECT: DATE: \ IN FAVOR: 4, NEUTRAL: 0 IN OPPOSITION: 0 Name: Representing: Address: Telephone No: c7-'c Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. City: '71/11' REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#: I SUBJECT: /1/(.8,0da1 DATE: IN FAVOR: 0 NEUTRAL: 0 IN OPPOSITION: 0 Name: •1-14 Representing: Address: 9 Lf 9 Wile\ 00 it-\ City: Telephone No: Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. NEUTRAL: D IN OPPOSITION: 0 S-e r DATE: IN Name: AV CITY COUNCIL AGENDA ITEM#: REQUEST TO SPEAK. SUBJECT: VIA- ela-AtA4 Representing: Address: 3 ci ki°1-0 City: Telephone No: 6/ - Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. Name: Representing: Address: City: Telephone No REQUEST TO SPEAK CITY COUNCIL AQENDA ITEM#:(.3 SUBJECT: IN OPPOSITION: Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. IN FAVOR: 0 NEUTRAL: REQUEST TO SPEAK CITY COUNCIL AGENDA ITEMik,Ci 3 SUBJECT: DATE: IN FAVOR: 0 NEUTRAL: 0 IN OPPOSITION: Name: ck Representing: Address: coqZ7tAcv City: Telephone No: —9 Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#55 SUBJECT: ) DATE: 5-104‘ IN FAVOR: CI NEUTRAL: CI IN OPPOSITION: CI Name: HD(Aug Prt, ces Representing: S 015v- Address: 445 S She Ave__ 57- - (45- City: S Telephone No: Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#: SUBJECT: 77 i DATE: 1/7."' IN FAVOR: LV Name: Representing: Address: City: A NEUTRAL: 0 IN OPPOSITION: 0 /7" -7 1 Telephone No: 2 Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. 114X-)11: 6- REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#5. ID SUBJECT: DATE: /7-- IN FAVOR: NEUTRAL: 0 Name: d 1/4retA_ IN OPPOSITION: 0 Representing: ,S6 Address: City: 4.0"P Telephone No: L S-?2 - 7-s-3 I Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#: SUBJECT: NEUTRAL: 0 IN OPPOSITION: 0 Name: Representing: Address: City: Telephone No: 7-66 - 1/on Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. ) REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#: SUBJECT: /11 (a-ALt c DATE: 1 1 IN FAVOR: NEUTRAL: 0 IN OPPOSITION: 0 Name: , S .h Representing: Address: 5 City: Telephone No: Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. CITY COUNCIL AGENDA ITEM#: REQUEST TO SPEAK SUBJECT: AVS DATE: /1 5 IN FAVOR: CI NEUTRAL: 0 IN OPPOSITION: 0 Name: 7Vii/C4 F E2.-WG rf::(?())1) Representing: 5 M LVIA-fiz 1F, Address: 0 0 City: 5M1/ U- Telephone No: 3 F Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#: 0 SUBJECT: .14 n cjd e 1,/D 1,1 DATE: IN FAVOR: 0 NEUTRAL: 0 IN OPPOSITION: 0 Name: ,r1 Representing: /777,-__C? jcic-721-c, /11/4 (-1 11 t' Ô'7 Address: di,4/ /14 Tf, 17 Al City: Telephone No: 'S Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. IN FAVOR: Name: 3 Representing: VI I/19SiOL JAc, VT Address: /c9 f/ CFN rb-- ST NEUTRAL: CA IN OPPOSITION: 0 City: ) J/V7 Telephone No: 9c .FA3.7e7 77) 4/0e REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#:R C SUBJECT: DATE: Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. -/-/A1/3/1 Ayr Ar 'fitiro4C1.4 &XONet1-5 l4)h: REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM: SUBJECT: DATE: 0 IN FAVOR: 0 JJ-e NEUTRAL: 0 IN OPPOSITION: 0 Name: 0 Representing: as-q_3 Telephone No: City: Address: I r4e N Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. Telephone No: Name: Representing: Address: City: CITY COUNCIL AGENDA ITEM#:- SUBJECT: DATE: — IN FAVOR: 0 4 IN OPPOSITION: 0 REQUEST TO SPEAK Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. REQUEST TO SPEAK CITY COUNCIL AGENDA ITEM#: SUBJECT: .P.-42'Af-r tikk2— §A/A1145a0 DATE: IN FAVOR: 0 NEUTRAL: 0 IN OPPOSITION: 0 Name: 1/0 A-PA/ Representing: j-A-N 114/70 M Address: gg 1, Ap-z4 City: Anr0 Telephone No: 54 4-6 5 Individual speakers wishing to address an agenda item are requested to complete this card. Although you are not required to complete this card, the information will assist the City in addressing the issue(s) you raise. Individual speakers are limited to three minutes for their presentation. Organized presentations with more than one speaker are limited to 15 minutes, at the discretion of the Mayor and Council. When speaking, be brief, stay on the subject. The Mayor will call you to speak at the appropriate time. Please make your presentation from the microphone. HAND SPEAKER SLIPS TO THE CITY CLERK PRIOR TO THE START OF THE MEETING.