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2021-01-20 City Council REGULAR MEETING - Agenda PacketCity Council Chambers Via Zoom (see below) Menifee, CA 92586 Bill Zimmerman, Mayor Bob Karwin, District 1 Matt Liesemeyer, District 2   Lesa Sobek, District 3   Dean Deines, District 4    AGENDA Menifee City Council  Regular Meeting Agenda Wednesday, January 20, 2021 5:00 PM Closed Session 6:00 PM Regular Meeting Armando G. Villa, City Manager Jeffrey T. Melching, City Attorney Sarah A. Manwaring, City Clerk AS A RESULT OF THE COVID­19 VIRUS, AND RESULTING ORDERS AND DIRECTION FROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OF CALIFORNIA, AND THE RIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL AS THE CITY OF MENIFEE EMERGENCY DECLARATION, THE PUBLIC WILL NOT BE PERMITTED TO PHYSICALLY ATTEND THE MENIFEE MEETING TO WHICH THIS AGENDA APPLIES. YOU MAY PARTICIPATE IN THE MEETING BY: LIVE VIDEO:  https://cityofmenifee.us/agendas and click on the “HTML Agenda Packet” icon under Documents. PUBLIC COMMENTS: For your comments to be read during the live meeting (3 minutes maximum) click on the link above and click on the comment icon under options, or submit an email to publiccomments@cityofmenifee.us CLOSED SESSION (5:00 PM) 1.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant Exposure to litigation pursuant to Government Code paragraph (4) of subdivision 1 potential case 2.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Government Code Paragraph (1) of subdivision (d) of Section 54956.9 City of Menifee v. All Persons Interested  Riverside County Superior Court Case No. RIC 1722064 REGULAR MEETING (6:00 PM) 1.CALL TO ORDER  2.ROLL CALL  3. WORDS OF INSPIRATION  3.1 Ryan Sharp, Impact Church 4. PLEDGE OF ALLEGIANCE  5. PRESENTATIONS  5.1 Recognition of Ron Sullivan, Retired Eastern Municipal Water District Board of Directors 5.2 Strategic Visioning Plan Update 6.AGENDA APPROVAL OR MODIFICATIONS   7. PUBLIC COMMENTS (NON­AGENDA ITEMS) This is the time for members of the public to address the Council about items which are NOT listed on the agenda.  The Ralph M. Brown Act limits the Council’s ability to respond to comments on non­agendized matters at the time such comments are made. Each speaker will be limited to three minutes on any single item. Please submit public comments to publiccomments@cityofmenifee.us. 8. COUNCILMEMBER UPDATES AND COMMENTS  9. APPROVAL OF MINUTES  9.1 December 16, 2020 City Council Minutes 10. CONSENT CALENDAR  All matters on the Consent Calendar are to be approved in one motion unless a Councilmember requests a separate action on a specific item on the Consent Calendar.  If an item is removed from the Consent Calendar, it will be discussed individually and acted upon separately. 10.1 Waiver of Reading RECOMMENDED ACTION 1. Waive the reading in full of any and all Ordinances listed on this agenda and provide that they be read by title only. 10.2 Warrant Register RECOMMENDED ACTION 1. Ratify and approve the Voucher Lists dated 12/4/2020, 12/18/2020 and 12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020, 12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE 12/31/2020 which have a total budgetary impact of $7,158,573.01. 10.3 Treasurer's Report ­ November 2020 RECOMMENDED ACTION 1. Approve the Treasurer’s Report for November 2020. 10.4 Purchase and Sale Agreement between Sun City Investments, LLC And the City of Menifee for the Purchase of Real Property RECOMMENDED ACTION 1. Approve the Purchase and Sale Agreement between Sun City Investments, LLC And the City of Menifee for the Purchase of Real Property, located at the corner of Bradley Road and Cherry Hills Boulevard, utilizing Development Impact Fee (DIF) Fund Balance for $7.97/sq ft ($1,999,999); and 2. Approve a Budget Amendment Resolution; and Designate the City Manager or his/her designee, to negotiate and execute all the necessary agreements or documents related to the land acquisition, including but not limited to the grant deed, surveying, escrow, title insurance, and full land appraisal for a not­to­ exceed amount of $7,000; and 3. Direct the City Clerk’s Office to file the Purchase and Sale Agreement and Grant Deed with Riverside County Clerk’s Office. 10.5 Centennial Park Sports Field Lighting, CIP No. 20­09 (CS015) RECOMMENDED ACTION 1. Accept Proposition 68 Per Capita Funding Grants provided by the State of California Department of Parks and Recreation, in the amounts of $177,952 and $57,123 for a total of $235,075 and authorize the City Manager, or his designee, to execute all necessary documents to implement the funded project/program(s); and 2. Adopt a Resolution authorizing an increase in revenue and appropriation of expenditures in the amount of $235,075 to accounts identified in the Fiscal Impact; and 3. Approve a contract with MUSCO Sports Lighting, LLC in the amount of $730,000 to furnish and install MUSCO Sports Field Lighting at Centennial Park for $730,000; and 4. Approve a contingency of 20%, or $146,000, for unanticipated change order(s) for work identified during the installation/construction process and authorize the City Manager or designee to execute any corresponding amendment(s)/change order(s); and 5. Exempt Purchase from the competitive bidding process as purchase will be made under a cooperative purchasing (piggyback) agreement as allowed under Menifee Municipal Code Section 3.12.070(6) with Sourcewell Contract No. 071619­MSL. 10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU) Plans and ADU Guidance Handbook RECOMMENDED ACTION 1. Approve Professional Services Agreement with Design Path Studio, in the not­ to­exceed amount of $80,000 for professional services to prepare pre­approved accessory dwelling unit (ADU) plans and an ADU Guidance Handbook, and 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $8,000. 10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance RECOMMENDED ACTION 1. Approve Professional Services Agreement with PlaceWorks, in the not­to­ exceed amount of $59,900 for professional services to prepare Objective Development Standards to accelerate housing production in conformance with Senate Bill (SB) 35 and Housing and Community Development’s (HCD) Streamlined Ministerial Approval Guidelines, and 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $5,990. 10.8 "Motte­Rancon Distribution Center" Environmental Impact Report Agreements RECOMMENDED ACTION 1. Approve a Developer Reimbursement Agreement between the City of Menifee and Core5 Industrial Partners, LLC related to the Plot Plan No. 2019­005 Project, located on Sherman Road, south of Ethanac Road: Environmental Impact Report (EIR) preparation; and 2. Adopt a Resolution appropriating $271,216 from available fund balance to Account #100­4330­52825 (Professional Services (Recoverable)); and 3. Approve a Professional Services Agreement with Kimley­Horn and Associates Inc. in the not­to­ exceed amount of $246,560 for preparation of an EIR for the Plot Plan No. 2019­005 Project; and 4. Authorize City Manager to execute the agreements and approve necessary contract amendment(s) up to 10% or $24,656. 10.9 Bond Reduction for Street and Drainage Improvements; Associated with Tract Map 28789­1; Pinehurst, LLC. RECOMMENDED ACTION 1. Approve 90% Bond Reduction of the faithful performance component a 100% reduction of the labor & materials component of the street and drainage bond for Tract Map 28789­1, located south of Newport Road on the east side of Evans Road. 10.10 10% Warrantee Bond Release, TR 28790­2 RECOMMENDED ACTION 1. Approve the release of the 10% Warrantee Surety Rider for Private Street and Drainage Improvements associated with TR28790­2, which is a 12.65 gross acre 75­lot residential development within a Private Development south of Newport Road between Evans Road and Winter Hawk Road.  10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLC RECOMMENDED ACTION 1. Approve and authorize City Manager to execute Lien Agreement allowing lien on a real property, located west of Murrieta Road, east of Geary Road, and north of McLaughlin Road, as form of security to guarantee completion of required public improvements for Tract 31856; and 2. Approve and authorize City Manager to execute Subdivision Improvement Agreements for Sewer, Road & Water for Tract 31856. 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic Signals RECOMMENDED ACTION 1. Accept the Traffic Signal Improvements at Menifee Road and Holland Road, Project No. CIP 20­06; and 2. Accept the Traffic Signal Improvements at Menifee Road and Camino Cristal Project No. CIP 20­07; and 3. Authorize the City Clerk’s Office to file the Notice of Completion for the Traffic Signals with the Riverside County Recorder’s Office. 11. PUBLIC HEARING ITEMS  11.1 PLN20­0312, Appeal of Planning Commission Approval of Sumac Ridge (TTM No. 37668) (CONTINUED) RECOMMENDED ACTION 1. Continue the public hearing to the February 3, 2021 City Council Meeting. 11.2 Annexation No. 36 to CFD 2015­2, Plot Plan 17­042, WellQuest Senior Living by WellQuest Menifee, LLC RECOMMENDED ACTION 1. Annex territory, located north of Aldergate Drive and east of Antelope Road, owned by WellQuest Menifee LLC, (PP 17­042), into City of Menifee Community Facilities District No. 2015­2 (Maintenance Services) ("CFD No. 2015­2" or "CFD") by taking the following actions: a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.        2. Introduce an Ordinance amending Ordinance No. 2015­173, levying and apportioning the special tax in CFD No. 2015­2. 11.3 Annexation No. 5 to CFD 2017­1 of Tract 36852, Del Oro Development by Forester Real Estate inc. RECOMMENDED ACTION 1. Amend the Annexation of territory located south of Holland Road, east of Hanover Lane, and west of Palomar Road, known as Del Oro (TR 36852) into City of Menifee Community Facilities District No. 2017­1 (Maintenance Services) ("CFD No. 2017­1" or "CFD") by taking the following actions a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.       2. Introduce an Ordinance amending Ordinance No. 2017­231, levying and apportioning the special tax in CFD No. 2017­1. 12. DISCUSSION ITEMS  12.1 Comprehensive Annual Financial Report (CAFR) for Fiscal Year End June 30, 2020 RECOMMENDED ACTION 1. Receive and file the Comprehensive Annual Financial Report (CAFR), and other audit reports, for the Fiscal Year End June 30, 2020.  12.2 City Committee and Commission Appointments RECOMMENDED ACTION 1. Councilmember Karwin to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 2. Councilmember Liesemeyer to appoint each of the following a) Measure DD Committee Member, and b) Senior Advisory Committee Member; and 3. Mayor Pro Tem Sobek to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 4. Councilmember Deines to appoint each of the following a) Planning Commissioner, b) Measure DD Committee Member, and c) Senior Advisory Committee Member; and 5. Mayor Zimmerman to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member. 12.3 Donation Acceptance Policy, Revision No. 1 RECOMMENDED ACTION 1. Discuss proposed revisions to the Donation Acceptance Policy; and 2. Adopt revisions to the Donation Acceptance Policy. 13. CITY ATTORNEY REPORTS  14. CITY MANAGER REPORTS  15. FUTURE AGENDA REQUESTS FROM COUNCIL MEMBERS  Ø Discuss strategy to address phase­out of illegal uses (Liesemeyer, July 18, 2018) Target Date: TBD Ø WRCOG presentation on Community Choice Aggregation (Liesemeyer, February 5, 2020) Target Date: TBD Ø Post Pandemic Report and Update on New Technology Implementations (Deines, April 15, 2020) Target Date: TBD Ø Discussion to Open DIF and Assess Park Allocations (Liesemeyer, June 17, 2020)  Target Date: TBD Ø Alarm Ordinance (Zimmerman, August 5, 2020) Target Date: March 2021 Ø Discuss hunting regulations within the City (Zimmerman, December 2, 2020) Target Date: TBD 16.ADJOURN  16.1 In honor and memory of City Planning Commissioner Earl Phillips. Menifee Mayor and City Council January 20,2021 Page 1 of 828 City Council ChambersVia Zoom (see below)Menifee, CA 92586Bill Zimmerman, MayorBob Karwin, District 1Matt Liesemeyer, District 2  Lesa Sobek, District 3  Dean Deines, District 4    AGENDA Menifee City Council Regular Meeting AgendaWednesday, January 20, 20215:00 PM Closed Session6:00 PM Regular MeetingArmando G. Villa, City ManagerJeffrey T. Melching, City AttorneySarah A. Manwaring, City ClerkAS A RESULT OF THE COVID­19 VIRUS, AND RESULTING ORDERS AND DIRECTIONFROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OFCALIFORNIA, AND THE RIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL ASTHE CITY OF MENIFEE EMERGENCY DECLARATION, THE PUBLIC WILL NOT BEPERMITTED TO PHYSICALLY ATTEND THE MENIFEE MEETING TO WHICH THIS AGENDAAPPLIES. YOU MAY PARTICIPATE IN THE MEETING BY:LIVE VIDEO:  https://cityofmenifee.us/agendas and click on the “HTML Agenda Packet” iconunder Documents.PUBLIC COMMENTS: For your comments to be read during the live meeting (3 minutesmaximum) click on the link above and click on the comment icon under options, or submit anemail to publiccomments@cityofmenifee.usCLOSED SESSION (5:00 PM)1.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATIONSignificant Exposure to litigation pursuant to Government Code paragraph (4) ofsubdivision1 potential case2.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATIONGovernment Code Paragraph (1) of subdivision (d) of Section 54956.9City of Menifee v. All Persons Interested Riverside County Superior Court Case No. RIC 1722064REGULAR MEETING (6:00 PM)1.CALL TO ORDER 2.ROLL CALL 3. WORDS OF INSPIRATION  3.1 Ryan Sharp, Impact Church 4. PLEDGE OF ALLEGIANCE  5. PRESENTATIONS  5.1 Recognition of Ron Sullivan, Retired Eastern Municipal Water District Board of Directors 5.2 Strategic Visioning Plan Update 6.AGENDA APPROVAL OR MODIFICATIONS   7. PUBLIC COMMENTS (NON­AGENDA ITEMS) This is the time for members of the public to address the Council about items which are NOT listed on the agenda.  The Ralph M. Brown Act limits the Council’s ability to respond to comments on non­agendized matters at the time such comments are made. Each speaker will be limited to three minutes on any single item. Please submit public comments to publiccomments@cityofmenifee.us. 8. COUNCILMEMBER UPDATES AND COMMENTS  9. APPROVAL OF MINUTES  9.1 December 16, 2020 City Council Minutes 10. CONSENT CALENDAR  All matters on the Consent Calendar are to be approved in one motion unless a Councilmember requests a separate action on a specific item on the Consent Calendar.  If an item is removed from the Consent Calendar, it will be discussed individually and acted upon separately. 10.1 Waiver of Reading RECOMMENDED ACTION 1. Waive the reading in full of any and all Ordinances listed on this agenda and provide that they be read by title only. 10.2 Warrant Register RECOMMENDED ACTION 1. Ratify and approve the Voucher Lists dated 12/4/2020, 12/18/2020 and 12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020, 12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE 12/31/2020 which have a total budgetary impact of $7,158,573.01. 10.3 Treasurer's Report ­ November 2020 RECOMMENDED ACTION 1. Approve the Treasurer’s Report for November 2020. 10.4 Purchase and Sale Agreement between Sun City Investments, LLC And the City of Menifee for the Purchase of Real Property RECOMMENDED ACTION 1. Approve the Purchase and Sale Agreement between Sun City Investments, LLC And the City of Menifee for the Purchase of Real Property, located at the corner of Bradley Road and Cherry Hills Boulevard, utilizing Development Impact Fee (DIF) Fund Balance for $7.97/sq ft ($1,999,999); and 2. Approve a Budget Amendment Resolution; and Designate the City Manager or his/her designee, to negotiate and execute all the necessary agreements or documents related to the land acquisition, including but not limited to the grant deed, surveying, escrow, title insurance, and full land appraisal for a not­to­ exceed amount of $7,000; and 3. Direct the City Clerk’s Office to file the Purchase and Sale Agreement and Grant Deed with Riverside County Clerk’s Office. 10.5 Centennial Park Sports Field Lighting, CIP No. 20­09 (CS015) RECOMMENDED ACTION 1. Accept Proposition 68 Per Capita Funding Grants provided by the State of California Department of Parks and Recreation, in the amounts of $177,952 and $57,123 for a total of $235,075 and authorize the City Manager, or his designee, to execute all necessary documents to implement the funded project/program(s); and 2. Adopt a Resolution authorizing an increase in revenue and appropriation of expenditures in the amount of $235,075 to accounts identified in the Fiscal Impact; and 3. Approve a contract with MUSCO Sports Lighting, LLC in the amount of $730,000 to furnish and install MUSCO Sports Field Lighting at Centennial Park for $730,000; and 4. Approve a contingency of 20%, or $146,000, for unanticipated change order(s) for work identified during the installation/construction process and authorize the City Manager or designee to execute any corresponding amendment(s)/change order(s); and 5. Exempt Purchase from the competitive bidding process as purchase will be made under a cooperative purchasing (piggyback) agreement as allowed under Menifee Municipal Code Section 3.12.070(6) with Sourcewell Contract No. 071619­MSL. 10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU) Plans and ADU Guidance Handbook RECOMMENDED ACTION 1. Approve Professional Services Agreement with Design Path Studio, in the not­ to­exceed amount of $80,000 for professional services to prepare pre­approved accessory dwelling unit (ADU) plans and an ADU Guidance Handbook, and 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $8,000. 10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance RECOMMENDED ACTION 1. Approve Professional Services Agreement with PlaceWorks, in the not­to­ exceed amount of $59,900 for professional services to prepare Objective Development Standards to accelerate housing production in conformance with Senate Bill (SB) 35 and Housing and Community Development’s (HCD) Streamlined Ministerial Approval Guidelines, and 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $5,990. 10.8 "Motte­Rancon Distribution Center" Environmental Impact Report Agreements RECOMMENDED ACTION 1. Approve a Developer Reimbursement Agreement between the City of Menifee and Core5 Industrial Partners, LLC related to the Plot Plan No. 2019­005 Project, located on Sherman Road, south of Ethanac Road: Environmental Impact Report (EIR) preparation; and 2. Adopt a Resolution appropriating $271,216 from available fund balance to Account #100­4330­52825 (Professional Services (Recoverable)); and 3. Approve a Professional Services Agreement with Kimley­Horn and Associates Inc. in the not­to­ exceed amount of $246,560 for preparation of an EIR for the Plot Plan No. 2019­005 Project; and 4. Authorize City Manager to execute the agreements and approve necessary contract amendment(s) up to 10% or $24,656. 10.9 Bond Reduction for Street and Drainage Improvements; Associated with Tract Map 28789­1; Pinehurst, LLC. RECOMMENDED ACTION 1. Approve 90% Bond Reduction of the faithful performance component a 100% reduction of the labor & materials component of the street and drainage bond for Tract Map 28789­1, located south of Newport Road on the east side of Evans Road. 10.10 10% Warrantee Bond Release, TR 28790­2 RECOMMENDED ACTION 1. Approve the release of the 10% Warrantee Surety Rider for Private Street and Drainage Improvements associated with TR28790­2, which is a 12.65 gross acre 75­lot residential development within a Private Development south of Newport Road between Evans Road and Winter Hawk Road.  10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLC RECOMMENDED ACTION 1. Approve and authorize City Manager to execute Lien Agreement allowing lien on a real property, located west of Murrieta Road, east of Geary Road, and north of McLaughlin Road, as form of security to guarantee completion of required public improvements for Tract 31856; and 2. Approve and authorize City Manager to execute Subdivision Improvement Agreements for Sewer, Road & Water for Tract 31856. 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic Signals RECOMMENDED ACTION 1. Accept the Traffic Signal Improvements at Menifee Road and Holland Road, Project No. CIP 20­06; and 2. Accept the Traffic Signal Improvements at Menifee Road and Camino Cristal Project No. CIP 20­07; and 3. Authorize the City Clerk’s Office to file the Notice of Completion for the Traffic Signals with the Riverside County Recorder’s Office. 11. PUBLIC HEARING ITEMS  11.1 PLN20­0312, Appeal of Planning Commission Approval of Sumac Ridge (TTM No. 37668) (CONTINUED) RECOMMENDED ACTION 1. Continue the public hearing to the February 3, 2021 City Council Meeting. 11.2 Annexation No. 36 to CFD 2015­2, Plot Plan 17­042, WellQuest Senior Living by WellQuest Menifee, LLC RECOMMENDED ACTION 1. Annex territory, located north of Aldergate Drive and east of Antelope Road, owned by WellQuest Menifee LLC, (PP 17­042), into City of Menifee Community Facilities District No. 2015­2 (Maintenance Services) ("CFD No. 2015­2" or "CFD") by taking the following actions: a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.        2. Introduce an Ordinance amending Ordinance No. 2015­173, levying and apportioning the special tax in CFD No. 2015­2. 11.3 Annexation No. 5 to CFD 2017­1 of Tract 36852, Del Oro Development by Forester Real Estate inc. RECOMMENDED ACTION 1. Amend the Annexation of territory located south of Holland Road, east of Hanover Lane, and west of Palomar Road, known as Del Oro (TR 36852) into City of Menifee Community Facilities District No. 2017­1 (Maintenance Services) ("CFD No. 2017­1" or "CFD") by taking the following actions a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.       2. Introduce an Ordinance amending Ordinance No. 2017­231, levying and apportioning the special tax in CFD No. 2017­1. 12. DISCUSSION ITEMS  12.1 Comprehensive Annual Financial Report (CAFR) for Fiscal Year End June 30, 2020 RECOMMENDED ACTION 1. Receive and file the Comprehensive Annual Financial Report (CAFR), and other audit reports, for the Fiscal Year End June 30, 2020.  12.2 City Committee and Commission Appointments RECOMMENDED ACTION 1. Councilmember Karwin to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 2. Councilmember Liesemeyer to appoint each of the following a) Measure DD Committee Member, and b) Senior Advisory Committee Member; and 3. Mayor Pro Tem Sobek to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 4. Councilmember Deines to appoint each of the following a) Planning Commissioner, b) Measure DD Committee Member, and c) Senior Advisory Committee Member; and 5. Mayor Zimmerman to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member. 12.3 Donation Acceptance Policy, Revision No. 1 RECOMMENDED ACTION 1. Discuss proposed revisions to the Donation Acceptance Policy; and 2. Adopt revisions to the Donation Acceptance Policy. 13. CITY ATTORNEY REPORTS  14. CITY MANAGER REPORTS  15. FUTURE AGENDA REQUESTS FROM COUNCIL MEMBERS  Ø Discuss strategy to address phase­out of illegal uses (Liesemeyer, July 18, 2018) Target Date: TBD Ø WRCOG presentation on Community Choice Aggregation (Liesemeyer, February 5, 2020) Target Date: TBD Ø Post Pandemic Report and Update on New Technology Implementations (Deines, April 15, 2020) Target Date: TBD Ø Discussion to Open DIF and Assess Park Allocations (Liesemeyer, June 17, 2020)  Target Date: TBD Ø Alarm Ordinance (Zimmerman, August 5, 2020) Target Date: March 2021 Ø Discuss hunting regulations within the City (Zimmerman, December 2, 2020) Target Date: TBD 16.ADJOURN  16.1 In honor and memory of City Planning Commissioner Earl Phillips. Menifee Mayor and City Council January 20,2021 Page 2 of 828 City Council ChambersVia Zoom (see below)Menifee, CA 92586Bill Zimmerman, MayorBob Karwin, District 1Matt Liesemeyer, District 2  Lesa Sobek, District 3  Dean Deines, District 4    AGENDA Menifee City Council Regular Meeting AgendaWednesday, January 20, 20215:00 PM Closed Session6:00 PM Regular MeetingArmando G. Villa, City ManagerJeffrey T. Melching, City AttorneySarah A. Manwaring, City ClerkAS A RESULT OF THE COVID­19 VIRUS, AND RESULTING ORDERS AND DIRECTIONFROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OFCALIFORNIA, AND THE RIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL ASTHE CITY OF MENIFEE EMERGENCY DECLARATION, THE PUBLIC WILL NOT BEPERMITTED TO PHYSICALLY ATTEND THE MENIFEE MEETING TO WHICH THIS AGENDAAPPLIES. YOU MAY PARTICIPATE IN THE MEETING BY:LIVE VIDEO:  https://cityofmenifee.us/agendas and click on the “HTML Agenda Packet” iconunder Documents.PUBLIC COMMENTS: For your comments to be read during the live meeting (3 minutesmaximum) click on the link above and click on the comment icon under options, or submit anemail to publiccomments@cityofmenifee.usCLOSED SESSION (5:00 PM)1.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATIONSignificant Exposure to litigation pursuant to Government Code paragraph (4) ofsubdivision1 potential case2.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATIONGovernment Code Paragraph (1) of subdivision (d) of Section 54956.9City of Menifee v. All Persons Interested Riverside County Superior Court Case No. RIC 1722064REGULAR MEETING (6:00 PM)1.CALL TO ORDER 2.ROLL CALL 3. WORDS OF INSPIRATION 3.1 Ryan Sharp, Impact Church4. PLEDGE OF ALLEGIANCE 5. PRESENTATIONS 5.1 Recognition of Ron Sullivan, Retired Eastern Municipal Water District Board ofDirectors5.2 Strategic Visioning Plan Update6.AGENDA APPROVAL OR MODIFICATIONS  7. PUBLIC COMMENTS (NON­AGENDA ITEMS)This is the time for members of the public to address the Council about items which are NOT listed on theagenda.  The Ralph M. Brown Act limits the Council’s ability to respond to comments on non­agendizedmatters at the time such comments are made. Each speaker will be limited to three minutes on anysingle item. Please submit public comments to publiccomments@cityofmenifee.us.8. COUNCILMEMBER UPDATES AND COMMENTS 9. APPROVAL OF MINUTES 9.1 December 16, 2020 City Council Minutes10. CONSENT CALENDAR All matters on the Consent Calendar are to be approved in one motion unless a Councilmemberrequests a separate action on a specific item on the Consent Calendar.  If an item is removed from theConsent Calendar, it will be discussed individually and acted upon separately.10.1 Waiver of ReadingRECOMMENDED ACTION1. Waive the reading in full of any and all Ordinances listed on this agenda andprovide that they be read by title only.10.2 Warrant RegisterRECOMMENDED ACTION1. Ratify and approve the Voucher Lists dated 12/4/2020, 12/18/2020 and12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020,12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE12/31/2020 which have a total budgetary impact of $7,158,573.01.10.3 Treasurer's Report ­ November 2020RECOMMENDED ACTION 1. Approve the Treasurer’s Report for November 2020. 10.4 Purchase and Sale Agreement between Sun City Investments, LLC And the City of Menifee for the Purchase of Real Property RECOMMENDED ACTION 1. Approve the Purchase and Sale Agreement between Sun City Investments, LLC And the City of Menifee for the Purchase of Real Property, located at the corner of Bradley Road and Cherry Hills Boulevard, utilizing Development Impact Fee (DIF) Fund Balance for $7.97/sq ft ($1,999,999); and 2. Approve a Budget Amendment Resolution; and Designate the City Manager or his/her designee, to negotiate and execute all the necessary agreements or documents related to the land acquisition, including but not limited to the grant deed, surveying, escrow, title insurance, and full land appraisal for a not­to­ exceed amount of $7,000; and 3. Direct the City Clerk’s Office to file the Purchase and Sale Agreement and Grant Deed with Riverside County Clerk’s Office. 10.5 Centennial Park Sports Field Lighting, CIP No. 20­09 (CS015) RECOMMENDED ACTION 1. Accept Proposition 68 Per Capita Funding Grants provided by the State of California Department of Parks and Recreation, in the amounts of $177,952 and $57,123 for a total of $235,075 and authorize the City Manager, or his designee, to execute all necessary documents to implement the funded project/program(s); and 2. Adopt a Resolution authorizing an increase in revenue and appropriation of expenditures in the amount of $235,075 to accounts identified in the Fiscal Impact; and 3. Approve a contract with MUSCO Sports Lighting, LLC in the amount of $730,000 to furnish and install MUSCO Sports Field Lighting at Centennial Park for $730,000; and 4. Approve a contingency of 20%, or $146,000, for unanticipated change order(s) for work identified during the installation/construction process and authorize the City Manager or designee to execute any corresponding amendment(s)/change order(s); and 5. Exempt Purchase from the competitive bidding process as purchase will be made under a cooperative purchasing (piggyback) agreement as allowed under Menifee Municipal Code Section 3.12.070(6) with Sourcewell Contract No. 071619­MSL. 10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU) Plans and ADU Guidance Handbook RECOMMENDED ACTION 1. Approve Professional Services Agreement with Design Path Studio, in the not­ to­exceed amount of $80,000 for professional services to prepare pre­approved accessory dwelling unit (ADU) plans and an ADU Guidance Handbook, and 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $8,000. 10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance RECOMMENDED ACTION 1. Approve Professional Services Agreement with PlaceWorks, in the not­to­ exceed amount of $59,900 for professional services to prepare Objective Development Standards to accelerate housing production in conformance with Senate Bill (SB) 35 and Housing and Community Development’s (HCD) Streamlined Ministerial Approval Guidelines, and 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $5,990. 10.8 "Motte­Rancon Distribution Center" Environmental Impact Report Agreements RECOMMENDED ACTION 1. Approve a Developer Reimbursement Agreement between the City of Menifee and Core5 Industrial Partners, LLC related to the Plot Plan No. 2019­005 Project, located on Sherman Road, south of Ethanac Road: Environmental Impact Report (EIR) preparation; and 2. Adopt a Resolution appropriating $271,216 from available fund balance to Account #100­4330­52825 (Professional Services (Recoverable)); and 3. Approve a Professional Services Agreement with Kimley­Horn and Associates Inc. in the not­to­ exceed amount of $246,560 for preparation of an EIR for the Plot Plan No. 2019­005 Project; and 4. Authorize City Manager to execute the agreements and approve necessary contract amendment(s) up to 10% or $24,656. 10.9 Bond Reduction for Street and Drainage Improvements; Associated with Tract Map 28789­1; Pinehurst, LLC. RECOMMENDED ACTION 1. Approve 90% Bond Reduction of the faithful performance component a 100% reduction of the labor & materials component of the street and drainage bond for Tract Map 28789­1, located south of Newport Road on the east side of Evans Road. 10.10 10% Warrantee Bond Release, TR 28790­2 RECOMMENDED ACTION 1. Approve the release of the 10% Warrantee Surety Rider for Private Street and Drainage Improvements associated with TR28790­2, which is a 12.65 gross acre 75­lot residential development within a Private Development south of Newport Road between Evans Road and Winter Hawk Road.  10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLC RECOMMENDED ACTION 1. Approve and authorize City Manager to execute Lien Agreement allowing lien on a real property, located west of Murrieta Road, east of Geary Road, and north of McLaughlin Road, as form of security to guarantee completion of required public improvements for Tract 31856; and 2. Approve and authorize City Manager to execute Subdivision Improvement Agreements for Sewer, Road & Water for Tract 31856. 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic Signals RECOMMENDED ACTION 1. Accept the Traffic Signal Improvements at Menifee Road and Holland Road, Project No. CIP 20­06; and 2. Accept the Traffic Signal Improvements at Menifee Road and Camino Cristal Project No. CIP 20­07; and 3. Authorize the City Clerk’s Office to file the Notice of Completion for the Traffic Signals with the Riverside County Recorder’s Office. 11. PUBLIC HEARING ITEMS  11.1 PLN20­0312, Appeal of Planning Commission Approval of Sumac Ridge (TTM No. 37668) (CONTINUED) RECOMMENDED ACTION 1. Continue the public hearing to the February 3, 2021 City Council Meeting. 11.2 Annexation No. 36 to CFD 2015­2, Plot Plan 17­042, WellQuest Senior Living by WellQuest Menifee, LLC RECOMMENDED ACTION 1. Annex territory, located north of Aldergate Drive and east of Antelope Road, owned by WellQuest Menifee LLC, (PP 17­042), into City of Menifee Community Facilities District No. 2015­2 (Maintenance Services) ("CFD No. 2015­2" or "CFD") by taking the following actions: a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.        2. Introduce an Ordinance amending Ordinance No. 2015­173, levying and apportioning the special tax in CFD No. 2015­2. 11.3 Annexation No. 5 to CFD 2017­1 of Tract 36852, Del Oro Development by Forester Real Estate inc. RECOMMENDED ACTION 1. Amend the Annexation of territory located south of Holland Road, east of Hanover Lane, and west of Palomar Road, known as Del Oro (TR 36852) into City of Menifee Community Facilities District No. 2017­1 (Maintenance Services) ("CFD No. 2017­1" or "CFD") by taking the following actions a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.       2. Introduce an Ordinance amending Ordinance No. 2017­231, levying and apportioning the special tax in CFD No. 2017­1. 12. DISCUSSION ITEMS  12.1 Comprehensive Annual Financial Report (CAFR) for Fiscal Year End June 30, 2020 RECOMMENDED ACTION 1. Receive and file the Comprehensive Annual Financial Report (CAFR), and other audit reports, for the Fiscal Year End June 30, 2020.  12.2 City Committee and Commission Appointments RECOMMENDED ACTION 1. Councilmember Karwin to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 2. Councilmember Liesemeyer to appoint each of the following a) Measure DD Committee Member, and b) Senior Advisory Committee Member; and 3. Mayor Pro Tem Sobek to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 4. Councilmember Deines to appoint each of the following a) Planning Commissioner, b) Measure DD Committee Member, and c) Senior Advisory Committee Member; and 5. Mayor Zimmerman to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member. 12.3 Donation Acceptance Policy, Revision No. 1 RECOMMENDED ACTION 1. Discuss proposed revisions to the Donation Acceptance Policy; and 2. Adopt revisions to the Donation Acceptance Policy. 13. CITY ATTORNEY REPORTS  14. CITY MANAGER REPORTS  15. FUTURE AGENDA REQUESTS FROM COUNCIL MEMBERS  Ø Discuss strategy to address phase­out of illegal uses (Liesemeyer, July 18, 2018) Target Date: TBD Ø WRCOG presentation on Community Choice Aggregation (Liesemeyer, February 5, 2020) Target Date: TBD Ø Post Pandemic Report and Update on New Technology Implementations (Deines, April 15, 2020) Target Date: TBD Ø Discussion to Open DIF and Assess Park Allocations (Liesemeyer, June 17, 2020)  Target Date: TBD Ø Alarm Ordinance (Zimmerman, August 5, 2020) Target Date: March 2021 Ø Discuss hunting regulations within the City (Zimmerman, December 2, 2020) Target Date: TBD 16.ADJOURN  16.1 In honor and memory of City Planning Commissioner Earl Phillips. Menifee Mayor and City Council January 20,2021 Page 3 of 828 City Council ChambersVia Zoom (see below)Menifee, CA 92586Bill Zimmerman, MayorBob Karwin, District 1Matt Liesemeyer, District 2  Lesa Sobek, District 3  Dean Deines, District 4    AGENDA Menifee City Council Regular Meeting AgendaWednesday, January 20, 20215:00 PM Closed Session6:00 PM Regular MeetingArmando G. Villa, City ManagerJeffrey T. Melching, City AttorneySarah A. Manwaring, City ClerkAS A RESULT OF THE COVID­19 VIRUS, AND RESULTING ORDERS AND DIRECTIONFROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OFCALIFORNIA, AND THE RIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL ASTHE CITY OF MENIFEE EMERGENCY DECLARATION, THE PUBLIC WILL NOT BEPERMITTED TO PHYSICALLY ATTEND THE MENIFEE MEETING TO WHICH THIS AGENDAAPPLIES. YOU MAY PARTICIPATE IN THE MEETING BY:LIVE VIDEO:  https://cityofmenifee.us/agendas and click on the “HTML Agenda Packet” iconunder Documents.PUBLIC COMMENTS: For your comments to be read during the live meeting (3 minutesmaximum) click on the link above and click on the comment icon under options, or submit anemail to publiccomments@cityofmenifee.usCLOSED SESSION (5:00 PM)1.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATIONSignificant Exposure to litigation pursuant to Government Code paragraph (4) ofsubdivision1 potential case2.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATIONGovernment Code Paragraph (1) of subdivision (d) of Section 54956.9City of Menifee v. All Persons Interested Riverside County Superior Court Case No. RIC 1722064REGULAR MEETING (6:00 PM)1.CALL TO ORDER 2.ROLL CALL 3. WORDS OF INSPIRATION 3.1 Ryan Sharp, Impact Church4. PLEDGE OF ALLEGIANCE 5. PRESENTATIONS 5.1 Recognition of Ron Sullivan, Retired Eastern Municipal Water District Board ofDirectors5.2 Strategic Visioning Plan Update6.AGENDA APPROVAL OR MODIFICATIONS  7. PUBLIC COMMENTS (NON­AGENDA ITEMS)This is the time for members of the public to address the Council about items which are NOT listed on theagenda.  The Ralph M. Brown Act limits the Council’s ability to respond to comments on non­agendizedmatters at the time such comments are made. Each speaker will be limited to three minutes on anysingle item. Please submit public comments to publiccomments@cityofmenifee.us.8. COUNCILMEMBER UPDATES AND COMMENTS 9. APPROVAL OF MINUTES 9.1 December 16, 2020 City Council Minutes10. CONSENT CALENDAR All matters on the Consent Calendar are to be approved in one motion unless a Councilmemberrequests a separate action on a specific item on the Consent Calendar.  If an item is removed from theConsent Calendar, it will be discussed individually and acted upon separately.10.1 Waiver of ReadingRECOMMENDED ACTION1. Waive the reading in full of any and all Ordinances listed on this agenda andprovide that they be read by title only.10.2 Warrant RegisterRECOMMENDED ACTION1. Ratify and approve the Voucher Lists dated 12/4/2020, 12/18/2020 and12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020,12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE12/31/2020 which have a total budgetary impact of $7,158,573.01.10.3 Treasurer's Report ­ November 2020RECOMMENDED ACTION1. Approve the Treasurer’s Report for November 2020.10.4 Purchase and Sale Agreement between Sun City Investments, LLC And the City ofMenifee for the Purchase of Real PropertyRECOMMENDED ACTION1. Approve the Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property, located at thecorner of Bradley Road and Cherry Hills Boulevard, utilizing DevelopmentImpact Fee (DIF) Fund Balance for $7.97/sq ft ($1,999,999); and2. Approve a Budget Amendment Resolution; and Designate the City Manager orhis/her designee, to negotiate and execute all the necessary agreements ordocuments related to the land acquisition, including but not limited to the grantdeed, surveying, escrow, title insurance, and full land appraisal for a not­to­exceed amount of $7,000; and3. Direct the City Clerk’s Office to file the Purchase and Sale Agreement andGrant Deed with Riverside County Clerk’s Office.10.5 Centennial Park Sports Field Lighting, CIP No. 20­09 (CS015)RECOMMENDED ACTION1. Accept Proposition 68 Per Capita Funding Grants provided by the State ofCalifornia Department of Parks and Recreation, in the amounts of $177,952and $57,123 for a total of $235,075 and authorize the City Manager, or hisdesignee, to execute all necessary documents to implement the fundedproject/program(s); and2. Adopt a Resolution authorizing an increase in revenue and appropriation ofexpenditures in the amount of $235,075 to accounts identified in the FiscalImpact; and3. Approve a contract with MUSCO Sports Lighting, LLC in the amount of$730,000 to furnish and install MUSCO Sports Field Lighting at Centennial Parkfor $730,000; and4. Approve a contingency of 20%, or $146,000, for unanticipated change order(s)for work identified during the installation/construction process and authorize theCity Manager or designee to execute any corresponding amendment(s)/changeorder(s); and5. Exempt Purchase from the competitive bidding process as purchase will bemade under a cooperative purchasing (piggyback) agreement as allowed underMenifee Municipal Code Section 3.12.070(6) with Sourcewell Contract No.071619­MSL.10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU) Plans and ADUGuidance HandbookRECOMMENDED ACTION1. Approve Professional Services Agreement with Design Path Studio, in the not­to­exceed amount of $80,000 for professional services to prepare pre­approved accessory dwelling unit (ADU) plans and an ADU Guidance Handbook, and 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $8,000. 10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance RECOMMENDED ACTION 1. Approve Professional Services Agreement with PlaceWorks, in the not­to­ exceed amount of $59,900 for professional services to prepare Objective Development Standards to accelerate housing production in conformance with Senate Bill (SB) 35 and Housing and Community Development’s (HCD) Streamlined Ministerial Approval Guidelines, and 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $5,990. 10.8 "Motte­Rancon Distribution Center" Environmental Impact Report Agreements RECOMMENDED ACTION 1. Approve a Developer Reimbursement Agreement between the City of Menifee and Core5 Industrial Partners, LLC related to the Plot Plan No. 2019­005 Project, located on Sherman Road, south of Ethanac Road: Environmental Impact Report (EIR) preparation; and 2. Adopt a Resolution appropriating $271,216 from available fund balance to Account #100­4330­52825 (Professional Services (Recoverable)); and 3. Approve a Professional Services Agreement with Kimley­Horn and Associates Inc. in the not­to­ exceed amount of $246,560 for preparation of an EIR for the Plot Plan No. 2019­005 Project; and 4. Authorize City Manager to execute the agreements and approve necessary contract amendment(s) up to 10% or $24,656. 10.9 Bond Reduction for Street and Drainage Improvements; Associated with Tract Map 28789­1; Pinehurst, LLC. RECOMMENDED ACTION 1. Approve 90% Bond Reduction of the faithful performance component a 100% reduction of the labor & materials component of the street and drainage bond for Tract Map 28789­1, located south of Newport Road on the east side of Evans Road. 10.10 10% Warrantee Bond Release, TR 28790­2 RECOMMENDED ACTION 1. Approve the release of the 10% Warrantee Surety Rider for Private Street and Drainage Improvements associated with TR28790­2, which is a 12.65 gross acre 75­lot residential development within a Private Development south of Newport Road between Evans Road and Winter Hawk Road.  10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLC RECOMMENDED ACTION 1. Approve and authorize City Manager to execute Lien Agreement allowing lien on a real property, located west of Murrieta Road, east of Geary Road, and north of McLaughlin Road, as form of security to guarantee completion of required public improvements for Tract 31856; and 2. Approve and authorize City Manager to execute Subdivision Improvement Agreements for Sewer, Road & Water for Tract 31856. 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic Signals RECOMMENDED ACTION 1. Accept the Traffic Signal Improvements at Menifee Road and Holland Road, Project No. CIP 20­06; and 2. Accept the Traffic Signal Improvements at Menifee Road and Camino Cristal Project No. CIP 20­07; and 3. Authorize the City Clerk’s Office to file the Notice of Completion for the Traffic Signals with the Riverside County Recorder’s Office. 11. PUBLIC HEARING ITEMS  11.1 PLN20­0312, Appeal of Planning Commission Approval of Sumac Ridge (TTM No. 37668) (CONTINUED) RECOMMENDED ACTION 1. Continue the public hearing to the February 3, 2021 City Council Meeting. 11.2 Annexation No. 36 to CFD 2015­2, Plot Plan 17­042, WellQuest Senior Living by WellQuest Menifee, LLC RECOMMENDED ACTION 1. Annex territory, located north of Aldergate Drive and east of Antelope Road, owned by WellQuest Menifee LLC, (PP 17­042), into City of Menifee Community Facilities District No. 2015­2 (Maintenance Services) ("CFD No. 2015­2" or "CFD") by taking the following actions: a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.        2. Introduce an Ordinance amending Ordinance No. 2015­173, levying and apportioning the special tax in CFD No. 2015­2. 11.3 Annexation No. 5 to CFD 2017­1 of Tract 36852, Del Oro Development by Forester Real Estate inc. RECOMMENDED ACTION 1. Amend the Annexation of territory located south of Holland Road, east of Hanover Lane, and west of Palomar Road, known as Del Oro (TR 36852) into City of Menifee Community Facilities District No. 2017­1 (Maintenance Services) ("CFD No. 2017­1" or "CFD") by taking the following actions a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.       2. Introduce an Ordinance amending Ordinance No. 2017­231, levying and apportioning the special tax in CFD No. 2017­1. 12. DISCUSSION ITEMS  12.1 Comprehensive Annual Financial Report (CAFR) for Fiscal Year End June 30, 2020 RECOMMENDED ACTION 1. Receive and file the Comprehensive Annual Financial Report (CAFR), and other audit reports, for the Fiscal Year End June 30, 2020.  12.2 City Committee and Commission Appointments RECOMMENDED ACTION 1. Councilmember Karwin to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 2. Councilmember Liesemeyer to appoint each of the following a) Measure DD Committee Member, and b) Senior Advisory Committee Member; and 3. Mayor Pro Tem Sobek to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 4. Councilmember Deines to appoint each of the following a) Planning Commissioner, b) Measure DD Committee Member, and c) Senior Advisory Committee Member; and 5. Mayor Zimmerman to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member. 12.3 Donation Acceptance Policy, Revision No. 1 RECOMMENDED ACTION 1. Discuss proposed revisions to the Donation Acceptance Policy; and 2. Adopt revisions to the Donation Acceptance Policy. 13. CITY ATTORNEY REPORTS  14. CITY MANAGER REPORTS  15. FUTURE AGENDA REQUESTS FROM COUNCIL MEMBERS  Ø Discuss strategy to address phase­out of illegal uses (Liesemeyer, July 18, 2018) Target Date: TBD Ø WRCOG presentation on Community Choice Aggregation (Liesemeyer, February 5, 2020) Target Date: TBD Ø Post Pandemic Report and Update on New Technology Implementations (Deines, April 15, 2020) Target Date: TBD Ø Discussion to Open DIF and Assess Park Allocations (Liesemeyer, June 17, 2020)  Target Date: TBD Ø Alarm Ordinance (Zimmerman, August 5, 2020) Target Date: March 2021 Ø Discuss hunting regulations within the City (Zimmerman, December 2, 2020) Target Date: TBD 16.ADJOURN  16.1 In honor and memory of City Planning Commissioner Earl Phillips. Menifee Mayor and City Council January 20,2021 Page 4 of 828 City Council ChambersVia Zoom (see below)Menifee, CA 92586Bill Zimmerman, MayorBob Karwin, District 1Matt Liesemeyer, District 2  Lesa Sobek, District 3  Dean Deines, District 4    AGENDA Menifee City Council Regular Meeting AgendaWednesday, January 20, 20215:00 PM Closed Session6:00 PM Regular MeetingArmando G. Villa, City ManagerJeffrey T. Melching, City AttorneySarah A. Manwaring, City ClerkAS A RESULT OF THE COVID­19 VIRUS, AND RESULTING ORDERS AND DIRECTIONFROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OFCALIFORNIA, AND THE RIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL ASTHE CITY OF MENIFEE EMERGENCY DECLARATION, THE PUBLIC WILL NOT BEPERMITTED TO PHYSICALLY ATTEND THE MENIFEE MEETING TO WHICH THIS AGENDAAPPLIES. YOU MAY PARTICIPATE IN THE MEETING BY:LIVE VIDEO:  https://cityofmenifee.us/agendas and click on the “HTML Agenda Packet” iconunder Documents.PUBLIC COMMENTS: For your comments to be read during the live meeting (3 minutesmaximum) click on the link above and click on the comment icon under options, or submit anemail to publiccomments@cityofmenifee.usCLOSED SESSION (5:00 PM)1.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATIONSignificant Exposure to litigation pursuant to Government Code paragraph (4) ofsubdivision1 potential case2.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATIONGovernment Code Paragraph (1) of subdivision (d) of Section 54956.9City of Menifee v. All Persons Interested Riverside County Superior Court Case No. RIC 1722064REGULAR MEETING (6:00 PM)1.CALL TO ORDER 2.ROLL CALL 3. WORDS OF INSPIRATION 3.1 Ryan Sharp, Impact Church4. PLEDGE OF ALLEGIANCE 5. PRESENTATIONS 5.1 Recognition of Ron Sullivan, Retired Eastern Municipal Water District Board ofDirectors5.2 Strategic Visioning Plan Update6.AGENDA APPROVAL OR MODIFICATIONS  7. PUBLIC COMMENTS (NON­AGENDA ITEMS)This is the time for members of the public to address the Council about items which are NOT listed on theagenda.  The Ralph M. Brown Act limits the Council’s ability to respond to comments on non­agendizedmatters at the time such comments are made. Each speaker will be limited to three minutes on anysingle item. Please submit public comments to publiccomments@cityofmenifee.us.8. COUNCILMEMBER UPDATES AND COMMENTS 9. APPROVAL OF MINUTES 9.1 December 16, 2020 City Council Minutes10. CONSENT CALENDAR All matters on the Consent Calendar are to be approved in one motion unless a Councilmemberrequests a separate action on a specific item on the Consent Calendar.  If an item is removed from theConsent Calendar, it will be discussed individually and acted upon separately.10.1 Waiver of ReadingRECOMMENDED ACTION1. Waive the reading in full of any and all Ordinances listed on this agenda andprovide that they be read by title only.10.2 Warrant RegisterRECOMMENDED ACTION1. Ratify and approve the Voucher Lists dated 12/4/2020, 12/18/2020 and12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020,12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE12/31/2020 which have a total budgetary impact of $7,158,573.01.10.3 Treasurer's Report ­ November 2020RECOMMENDED ACTION1. Approve the Treasurer’s Report for November 2020.10.4 Purchase and Sale Agreement between Sun City Investments, LLC And the City ofMenifee for the Purchase of Real PropertyRECOMMENDED ACTION1. Approve the Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property, located at thecorner of Bradley Road and Cherry Hills Boulevard, utilizing DevelopmentImpact Fee (DIF) Fund Balance for $7.97/sq ft ($1,999,999); and2. Approve a Budget Amendment Resolution; and Designate the City Manager orhis/her designee, to negotiate and execute all the necessary agreements ordocuments related to the land acquisition, including but not limited to the grantdeed, surveying, escrow, title insurance, and full land appraisal for a not­to­exceed amount of $7,000; and3. Direct the City Clerk’s Office to file the Purchase and Sale Agreement andGrant Deed with Riverside County Clerk’s Office.10.5 Centennial Park Sports Field Lighting, CIP No. 20­09 (CS015)RECOMMENDED ACTION1. Accept Proposition 68 Per Capita Funding Grants provided by the State ofCalifornia Department of Parks and Recreation, in the amounts of $177,952and $57,123 for a total of $235,075 and authorize the City Manager, or hisdesignee, to execute all necessary documents to implement the fundedproject/program(s); and2. Adopt a Resolution authorizing an increase in revenue and appropriation ofexpenditures in the amount of $235,075 to accounts identified in the FiscalImpact; and3. Approve a contract with MUSCO Sports Lighting, LLC in the amount of$730,000 to furnish and install MUSCO Sports Field Lighting at Centennial Parkfor $730,000; and4. Approve a contingency of 20%, or $146,000, for unanticipated change order(s)for work identified during the installation/construction process and authorize theCity Manager or designee to execute any corresponding amendment(s)/changeorder(s); and5. Exempt Purchase from the competitive bidding process as purchase will bemade under a cooperative purchasing (piggyback) agreement as allowed underMenifee Municipal Code Section 3.12.070(6) with Sourcewell Contract No.071619­MSL.10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU) Plans and ADUGuidance HandbookRECOMMENDED ACTION1. Approve Professional Services Agreement with Design Path Studio, in the not­to­exceed amount of $80,000 for professional services to prepare pre­approvedaccessory dwelling unit (ADU) plans and an ADU Guidance Handbook, and2. Authorize City Manager to execute the agreement and approve any necessarycontract amendment(s) up to 10% or $8,000.10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35ComplianceRECOMMENDED ACTION1. Approve Professional Services Agreement with PlaceWorks, in the not­to­exceed amount of $59,900 for professional services to prepare ObjectiveDevelopment Standards to accelerate housing production in conformance withSenate Bill (SB) 35 and Housing and Community Development’s (HCD)Streamlined Ministerial Approval Guidelines, and2. Authorize City Manager to execute the agreement and approve any necessarycontract amendment(s) up to 10% or $5,990.10.8 "Motte­Rancon Distribution Center" Environmental Impact Report AgreementsRECOMMENDED ACTION1. Approve a Developer Reimbursement Agreement between the City of Menifeeand Core5 Industrial Partners, LLC related to the Plot Plan No. 2019­005Project, located on Sherman Road, south of Ethanac Road: EnvironmentalImpact Report (EIR) preparation; and2. Adopt a Resolution appropriating $271,216 from available fund balance toAccount #100­4330­52825 (Professional Services (Recoverable)); and3. Approve a Professional Services Agreement with Kimley­Horn andAssociates Inc. in the not­to­ exceed amount of $246,560 for preparation of anEIR for the Plot Plan No. 2019­005 Project; and4. Authorize City Manager to execute the agreements and approve necessarycontract amendment(s) up to 10% or $24,656.10.9 Bond Reduction for Street and Drainage Improvements; Associated with Tract Map28789­1; Pinehurst, LLC.RECOMMENDED ACTION1. Approve 90% Bond Reduction of the faithful performance component a 100%reduction of the labor & materials component of the street and drainage bondfor Tract Map 28789­1, located south of Newport Road on the east side ofEvans Road.10.10 10% Warrantee Bond Release, TR 28790­2RECOMMENDED ACTION1. Approve the release of the 10% Warrantee Surety Rider for Private Street andDrainage Improvements associated with TR28790­2, which is a 12.65 grossacre 75­lot residential development within a Private Development south of Newport Road between Evans Road and Winter Hawk Road.  10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLC RECOMMENDED ACTION 1. Approve and authorize City Manager to execute Lien Agreement allowing lien on a real property, located west of Murrieta Road, east of Geary Road, and north of McLaughlin Road, as form of security to guarantee completion of required public improvements for Tract 31856; and 2. Approve and authorize City Manager to execute Subdivision Improvement Agreements for Sewer, Road & Water for Tract 31856. 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic Signals RECOMMENDED ACTION 1. Accept the Traffic Signal Improvements at Menifee Road and Holland Road, Project No. CIP 20­06; and 2. Accept the Traffic Signal Improvements at Menifee Road and Camino Cristal Project No. CIP 20­07; and 3. Authorize the City Clerk’s Office to file the Notice of Completion for the Traffic Signals with the Riverside County Recorder’s Office. 11. PUBLIC HEARING ITEMS  11.1 PLN20­0312, Appeal of Planning Commission Approval of Sumac Ridge (TTM No. 37668) (CONTINUED) RECOMMENDED ACTION 1. Continue the public hearing to the February 3, 2021 City Council Meeting. 11.2 Annexation No. 36 to CFD 2015­2, Plot Plan 17­042, WellQuest Senior Living by WellQuest Menifee, LLC RECOMMENDED ACTION 1. Annex territory, located north of Aldergate Drive and east of Antelope Road, owned by WellQuest Menifee LLC, (PP 17­042), into City of Menifee Community Facilities District No. 2015­2 (Maintenance Services) ("CFD No. 2015­2" or "CFD") by taking the following actions: a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.        2. Introduce an Ordinance amending Ordinance No. 2015­173, levying and apportioning the special tax in CFD No. 2015­2. 11.3 Annexation No. 5 to CFD 2017­1 of Tract 36852, Del Oro Development by Forester Real Estate inc. RECOMMENDED ACTION 1. Amend the Annexation of territory located south of Holland Road, east of Hanover Lane, and west of Palomar Road, known as Del Oro (TR 36852) into City of Menifee Community Facilities District No. 2017­1 (Maintenance Services) ("CFD No. 2017­1" or "CFD") by taking the following actions a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.       2. Introduce an Ordinance amending Ordinance No. 2017­231, levying and apportioning the special tax in CFD No. 2017­1. 12. DISCUSSION ITEMS  12.1 Comprehensive Annual Financial Report (CAFR) for Fiscal Year End June 30, 2020 RECOMMENDED ACTION 1. Receive and file the Comprehensive Annual Financial Report (CAFR), and other audit reports, for the Fiscal Year End June 30, 2020.  12.2 City Committee and Commission Appointments RECOMMENDED ACTION 1. Councilmember Karwin to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 2. Councilmember Liesemeyer to appoint each of the following a) Measure DD Committee Member, and b) Senior Advisory Committee Member; and 3. Mayor Pro Tem Sobek to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 4. Councilmember Deines to appoint each of the following a) Planning Commissioner, b) Measure DD Committee Member, and c) Senior Advisory Committee Member; and 5. Mayor Zimmerman to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member. 12.3 Donation Acceptance Policy, Revision No. 1 RECOMMENDED ACTION 1. Discuss proposed revisions to the Donation Acceptance Policy; and 2. Adopt revisions to the Donation Acceptance Policy. 13. CITY ATTORNEY REPORTS  14. CITY MANAGER REPORTS  15. FUTURE AGENDA REQUESTS FROM COUNCIL MEMBERS  Ø Discuss strategy to address phase­out of illegal uses (Liesemeyer, July 18, 2018) Target Date: TBD Ø WRCOG presentation on Community Choice Aggregation (Liesemeyer, February 5, 2020) Target Date: TBD Ø Post Pandemic Report and Update on New Technology Implementations (Deines, April 15, 2020) Target Date: TBD Ø Discussion to Open DIF and Assess Park Allocations (Liesemeyer, June 17, 2020)  Target Date: TBD Ø Alarm Ordinance (Zimmerman, August 5, 2020) Target Date: March 2021 Ø Discuss hunting regulations within the City (Zimmerman, December 2, 2020) Target Date: TBD 16.ADJOURN  16.1 In honor and memory of City Planning Commissioner Earl Phillips. Menifee Mayor and City Council January 20,2021 Page 5 of 828 City Council ChambersVia Zoom (see below)Menifee, CA 92586Bill Zimmerman, MayorBob Karwin, District 1Matt Liesemeyer, District 2  Lesa Sobek, District 3  Dean Deines, District 4    AGENDA Menifee City Council Regular Meeting AgendaWednesday, January 20, 20215:00 PM Closed Session6:00 PM Regular MeetingArmando G. Villa, City ManagerJeffrey T. Melching, City AttorneySarah A. Manwaring, City ClerkAS A RESULT OF THE COVID­19 VIRUS, AND RESULTING ORDERS AND DIRECTIONFROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OFCALIFORNIA, AND THE RIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL ASTHE CITY OF MENIFEE EMERGENCY DECLARATION, THE PUBLIC WILL NOT BEPERMITTED TO PHYSICALLY ATTEND THE MENIFEE MEETING TO WHICH THIS AGENDAAPPLIES. YOU MAY PARTICIPATE IN THE MEETING BY:LIVE VIDEO:  https://cityofmenifee.us/agendas and click on the “HTML Agenda Packet” iconunder Documents.PUBLIC COMMENTS: For your comments to be read during the live meeting (3 minutesmaximum) click on the link above and click on the comment icon under options, or submit anemail to publiccomments@cityofmenifee.usCLOSED SESSION (5:00 PM)1.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATIONSignificant Exposure to litigation pursuant to Government Code paragraph (4) ofsubdivision1 potential case2.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATIONGovernment Code Paragraph (1) of subdivision (d) of Section 54956.9City of Menifee v. All Persons Interested Riverside County Superior Court Case No. RIC 1722064REGULAR MEETING (6:00 PM)1.CALL TO ORDER 2.ROLL CALL 3. WORDS OF INSPIRATION 3.1 Ryan Sharp, Impact Church4. PLEDGE OF ALLEGIANCE 5. PRESENTATIONS 5.1 Recognition of Ron Sullivan, Retired Eastern Municipal Water District Board ofDirectors5.2 Strategic Visioning Plan Update6.AGENDA APPROVAL OR MODIFICATIONS  7. PUBLIC COMMENTS (NON­AGENDA ITEMS)This is the time for members of the public to address the Council about items which are NOT listed on theagenda.  The Ralph M. Brown Act limits the Council’s ability to respond to comments on non­agendizedmatters at the time such comments are made. Each speaker will be limited to three minutes on anysingle item. Please submit public comments to publiccomments@cityofmenifee.us.8. COUNCILMEMBER UPDATES AND COMMENTS 9. APPROVAL OF MINUTES 9.1 December 16, 2020 City Council Minutes10. CONSENT CALENDAR All matters on the Consent Calendar are to be approved in one motion unless a Councilmemberrequests a separate action on a specific item on the Consent Calendar.  If an item is removed from theConsent Calendar, it will be discussed individually and acted upon separately.10.1 Waiver of ReadingRECOMMENDED ACTION1. Waive the reading in full of any and all Ordinances listed on this agenda andprovide that they be read by title only.10.2 Warrant RegisterRECOMMENDED ACTION1. Ratify and approve the Voucher Lists dated 12/4/2020, 12/18/2020 and12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020,12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE12/31/2020 which have a total budgetary impact of $7,158,573.01.10.3 Treasurer's Report ­ November 2020RECOMMENDED ACTION1. Approve the Treasurer’s Report for November 2020.10.4 Purchase and Sale Agreement between Sun City Investments, LLC And the City ofMenifee for the Purchase of Real PropertyRECOMMENDED ACTION1. Approve the Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property, located at thecorner of Bradley Road and Cherry Hills Boulevard, utilizing DevelopmentImpact Fee (DIF) Fund Balance for $7.97/sq ft ($1,999,999); and2. Approve a Budget Amendment Resolution; and Designate the City Manager orhis/her designee, to negotiate and execute all the necessary agreements ordocuments related to the land acquisition, including but not limited to the grantdeed, surveying, escrow, title insurance, and full land appraisal for a not­to­exceed amount of $7,000; and3. Direct the City Clerk’s Office to file the Purchase and Sale Agreement andGrant Deed with Riverside County Clerk’s Office.10.5 Centennial Park Sports Field Lighting, CIP No. 20­09 (CS015)RECOMMENDED ACTION1. Accept Proposition 68 Per Capita Funding Grants provided by the State ofCalifornia Department of Parks and Recreation, in the amounts of $177,952and $57,123 for a total of $235,075 and authorize the City Manager, or hisdesignee, to execute all necessary documents to implement the fundedproject/program(s); and2. Adopt a Resolution authorizing an increase in revenue and appropriation ofexpenditures in the amount of $235,075 to accounts identified in the FiscalImpact; and3. Approve a contract with MUSCO Sports Lighting, LLC in the amount of$730,000 to furnish and install MUSCO Sports Field Lighting at Centennial Parkfor $730,000; and4. Approve a contingency of 20%, or $146,000, for unanticipated change order(s)for work identified during the installation/construction process and authorize theCity Manager or designee to execute any corresponding amendment(s)/changeorder(s); and5. Exempt Purchase from the competitive bidding process as purchase will bemade under a cooperative purchasing (piggyback) agreement as allowed underMenifee Municipal Code Section 3.12.070(6) with Sourcewell Contract No.071619­MSL.10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU) Plans and ADUGuidance HandbookRECOMMENDED ACTION1. Approve Professional Services Agreement with Design Path Studio, in the not­to­exceed amount of $80,000 for professional services to prepare pre­approvedaccessory dwelling unit (ADU) plans and an ADU Guidance Handbook, and2. Authorize City Manager to execute the agreement and approve any necessarycontract amendment(s) up to 10% or $8,000.10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35ComplianceRECOMMENDED ACTION1. Approve Professional Services Agreement with PlaceWorks, in the not­to­exceed amount of $59,900 for professional services to prepare ObjectiveDevelopment Standards to accelerate housing production in conformance withSenate Bill (SB) 35 and Housing and Community Development’s (HCD)Streamlined Ministerial Approval Guidelines, and2. Authorize City Manager to execute the agreement and approve any necessarycontract amendment(s) up to 10% or $5,990.10.8 "Motte­Rancon Distribution Center" Environmental Impact Report AgreementsRECOMMENDED ACTION1. Approve a Developer Reimbursement Agreement between the City of Menifeeand Core5 Industrial Partners, LLC related to the Plot Plan No. 2019­005Project, located on Sherman Road, south of Ethanac Road: EnvironmentalImpact Report (EIR) preparation; and2. Adopt a Resolution appropriating $271,216 from available fund balance toAccount #100­4330­52825 (Professional Services (Recoverable)); and3. Approve a Professional Services Agreement with Kimley­Horn andAssociates Inc. in the not­to­ exceed amount of $246,560 for preparation of anEIR for the Plot Plan No. 2019­005 Project; and4. Authorize City Manager to execute the agreements and approve necessarycontract amendment(s) up to 10% or $24,656.10.9 Bond Reduction for Street and Drainage Improvements; Associated with Tract Map28789­1; Pinehurst, LLC.RECOMMENDED ACTION1. Approve 90% Bond Reduction of the faithful performance component a 100%reduction of the labor & materials component of the street and drainage bondfor Tract Map 28789­1, located south of Newport Road on the east side ofEvans Road.10.10 10% Warrantee Bond Release, TR 28790­2RECOMMENDED ACTION1. Approve the release of the 10% Warrantee Surety Rider for Private Street andDrainage Improvements associated with TR28790­2, which is a 12.65 grossacre 75­lot residential development within a Private Development south ofNewport Road between Evans Road and Winter Hawk Road. 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, MenifeeLand DV, LLCRECOMMENDED ACTION1. Approve and authorize City Manager to execute Lien Agreement allowing lien ona real property, located west of Murrieta Road, east of Geary Road, and north ofMcLaughlin Road, as form of security to guarantee completion of requiredpublic improvements for Tract 31856; and2. Approve and authorize City Manager to execute Subdivision ImprovementAgreements for Sewer, Road & Water for Tract 31856.10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & CaminoCristal Traffic SignalsRECOMMENDED ACTION1. Accept the Traffic Signal Improvements at Menifee Road and Holland Road,Project No. CIP 20­06; and2. Accept the Traffic Signal Improvements at Menifee Road and Camino CristalProject No. CIP 20­07; and3. Authorize the City Clerk’s Office to file the Notice of Completion for the TrafficSignals with the Riverside County Recorder’s Office.11. PUBLIC HEARING ITEMS 11.1 PLN20­0312, Appeal of Planning Commission Approval of Sumac Ridge (TTM No.37668) (CONTINUED)RECOMMENDED ACTION1. Continue the public hearing to the February 3, 2021 City Council Meeting.11.2 Annexation No. 36 to CFD 2015­2, Plot Plan 17­042, WellQuest Senior Living byWellQuest Menifee, LLCRECOMMENDED ACTION1. Annex territory, located north of Aldergate Drive and east of Antelope Road,owned by WellQuest Menifee LLC, (PP 17­042), into City of MenifeeCommunity Facilities District No. 2015­2 (Maintenance Services) ("CFD No.2015­2" or "CFD") by taking the following actions:a) Hold public hearing;b) Adopt the Resolution calling the election;c) Hold a special landowner election and canvass the election; andd) Adopt the Resolution declaring results of special landowner election.        2. Introduce an Ordinance amending Ordinance No. 2015­173, levying and apportioning the special tax in CFD No. 2015­2. 11.3 Annexation No. 5 to CFD 2017­1 of Tract 36852, Del Oro Development by Forester Real Estate inc. RECOMMENDED ACTION 1. Amend the Annexation of territory located south of Holland Road, east of Hanover Lane, and west of Palomar Road, known as Del Oro (TR 36852) into City of Menifee Community Facilities District No. 2017­1 (Maintenance Services) ("CFD No. 2017­1" or "CFD") by taking the following actions a) Hold public hearing; b) Adopt the Resolution calling the election; c) Hold a special landowner election and canvass the election; and d) Adopt the Resolution declaring results of special landowner election.       2. Introduce an Ordinance amending Ordinance No. 2017­231, levying and apportioning the special tax in CFD No. 2017­1. 12. DISCUSSION ITEMS  12.1 Comprehensive Annual Financial Report (CAFR) for Fiscal Year End June 30, 2020 RECOMMENDED ACTION 1. Receive and file the Comprehensive Annual Financial Report (CAFR), and other audit reports, for the Fiscal Year End June 30, 2020.  12.2 City Committee and Commission Appointments RECOMMENDED ACTION 1. Councilmember Karwin to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 2. Councilmember Liesemeyer to appoint each of the following a) Measure DD Committee Member, and b) Senior Advisory Committee Member; and 3. Mayor Pro Tem Sobek to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 4. Councilmember Deines to appoint each of the following a) Planning Commissioner, b) Measure DD Committee Member, and c) Senior Advisory Committee Member; and 5. Mayor Zimmerman to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member. 12.3 Donation Acceptance Policy, Revision No. 1 RECOMMENDED ACTION 1. Discuss proposed revisions to the Donation Acceptance Policy; and 2. Adopt revisions to the Donation Acceptance Policy. 13. CITY ATTORNEY REPORTS  14. CITY MANAGER REPORTS  15. FUTURE AGENDA REQUESTS FROM COUNCIL MEMBERS  Ø Discuss strategy to address phase­out of illegal uses (Liesemeyer, July 18, 2018) Target Date: TBD Ø WRCOG presentation on Community Choice Aggregation (Liesemeyer, February 5, 2020) Target Date: TBD Ø Post Pandemic Report and Update on New Technology Implementations (Deines, April 15, 2020) Target Date: TBD Ø Discussion to Open DIF and Assess Park Allocations (Liesemeyer, June 17, 2020)  Target Date: TBD Ø Alarm Ordinance (Zimmerman, August 5, 2020) Target Date: March 2021 Ø Discuss hunting regulations within the City (Zimmerman, December 2, 2020) Target Date: TBD 16.ADJOURN  16.1 In honor and memory of City Planning Commissioner Earl Phillips. Menifee Mayor and City Council January 20,2021 Page 6 of 828 City Council ChambersVia Zoom (see below)Menifee, CA 92586Bill Zimmerman, MayorBob Karwin, District 1Matt Liesemeyer, District 2  Lesa Sobek, District 3  Dean Deines, District 4    AGENDA Menifee City Council Regular Meeting AgendaWednesday, January 20, 20215:00 PM Closed Session6:00 PM Regular MeetingArmando G. Villa, City ManagerJeffrey T. Melching, City AttorneySarah A. Manwaring, City ClerkAS A RESULT OF THE COVID­19 VIRUS, AND RESULTING ORDERS AND DIRECTIONFROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OFCALIFORNIA, AND THE RIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL ASTHE CITY OF MENIFEE EMERGENCY DECLARATION, THE PUBLIC WILL NOT BEPERMITTED TO PHYSICALLY ATTEND THE MENIFEE MEETING TO WHICH THIS AGENDAAPPLIES. YOU MAY PARTICIPATE IN THE MEETING BY:LIVE VIDEO:  https://cityofmenifee.us/agendas and click on the “HTML Agenda Packet” iconunder Documents.PUBLIC COMMENTS: For your comments to be read during the live meeting (3 minutesmaximum) click on the link above and click on the comment icon under options, or submit anemail to publiccomments@cityofmenifee.usCLOSED SESSION (5:00 PM)1.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATIONSignificant Exposure to litigation pursuant to Government Code paragraph (4) ofsubdivision1 potential case2.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATIONGovernment Code Paragraph (1) of subdivision (d) of Section 54956.9City of Menifee v. All Persons Interested Riverside County Superior Court Case No. RIC 1722064REGULAR MEETING (6:00 PM)1.CALL TO ORDER 2.ROLL CALL 3. WORDS OF INSPIRATION 3.1 Ryan Sharp, Impact Church4. PLEDGE OF ALLEGIANCE 5. PRESENTATIONS 5.1 Recognition of Ron Sullivan, Retired Eastern Municipal Water District Board ofDirectors5.2 Strategic Visioning Plan Update6.AGENDA APPROVAL OR MODIFICATIONS  7. PUBLIC COMMENTS (NON­AGENDA ITEMS)This is the time for members of the public to address the Council about items which are NOT listed on theagenda.  The Ralph M. Brown Act limits the Council’s ability to respond to comments on non­agendizedmatters at the time such comments are made. Each speaker will be limited to three minutes on anysingle item. Please submit public comments to publiccomments@cityofmenifee.us.8. COUNCILMEMBER UPDATES AND COMMENTS 9. APPROVAL OF MINUTES 9.1 December 16, 2020 City Council Minutes10. CONSENT CALENDAR All matters on the Consent Calendar are to be approved in one motion unless a Councilmemberrequests a separate action on a specific item on the Consent Calendar.  If an item is removed from theConsent Calendar, it will be discussed individually and acted upon separately.10.1 Waiver of ReadingRECOMMENDED ACTION1. Waive the reading in full of any and all Ordinances listed on this agenda andprovide that they be read by title only.10.2 Warrant RegisterRECOMMENDED ACTION1. Ratify and approve the Voucher Lists dated 12/4/2020, 12/18/2020 and12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020,12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE12/31/2020 which have a total budgetary impact of $7,158,573.01.10.3 Treasurer's Report ­ November 2020RECOMMENDED ACTION1. Approve the Treasurer’s Report for November 2020.10.4 Purchase and Sale Agreement between Sun City Investments, LLC And the City ofMenifee for the Purchase of Real PropertyRECOMMENDED ACTION1. Approve the Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property, located at thecorner of Bradley Road and Cherry Hills Boulevard, utilizing DevelopmentImpact Fee (DIF) Fund Balance for $7.97/sq ft ($1,999,999); and2. Approve a Budget Amendment Resolution; and Designate the City Manager orhis/her designee, to negotiate and execute all the necessary agreements ordocuments related to the land acquisition, including but not limited to the grantdeed, surveying, escrow, title insurance, and full land appraisal for a not­to­exceed amount of $7,000; and3. Direct the City Clerk’s Office to file the Purchase and Sale Agreement andGrant Deed with Riverside County Clerk’s Office.10.5 Centennial Park Sports Field Lighting, CIP No. 20­09 (CS015)RECOMMENDED ACTION1. Accept Proposition 68 Per Capita Funding Grants provided by the State ofCalifornia Department of Parks and Recreation, in the amounts of $177,952and $57,123 for a total of $235,075 and authorize the City Manager, or hisdesignee, to execute all necessary documents to implement the fundedproject/program(s); and2. Adopt a Resolution authorizing an increase in revenue and appropriation ofexpenditures in the amount of $235,075 to accounts identified in the FiscalImpact; and3. Approve a contract with MUSCO Sports Lighting, LLC in the amount of$730,000 to furnish and install MUSCO Sports Field Lighting at Centennial Parkfor $730,000; and4. Approve a contingency of 20%, or $146,000, for unanticipated change order(s)for work identified during the installation/construction process and authorize theCity Manager or designee to execute any corresponding amendment(s)/changeorder(s); and5. Exempt Purchase from the competitive bidding process as purchase will bemade under a cooperative purchasing (piggyback) agreement as allowed underMenifee Municipal Code Section 3.12.070(6) with Sourcewell Contract No.071619­MSL.10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU) Plans and ADUGuidance HandbookRECOMMENDED ACTION1. Approve Professional Services Agreement with Design Path Studio, in the not­to­exceed amount of $80,000 for professional services to prepare pre­approvedaccessory dwelling unit (ADU) plans and an ADU Guidance Handbook, and2. Authorize City Manager to execute the agreement and approve any necessarycontract amendment(s) up to 10% or $8,000.10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35ComplianceRECOMMENDED ACTION1. Approve Professional Services Agreement with PlaceWorks, in the not­to­exceed amount of $59,900 for professional services to prepare ObjectiveDevelopment Standards to accelerate housing production in conformance withSenate Bill (SB) 35 and Housing and Community Development’s (HCD)Streamlined Ministerial Approval Guidelines, and2. Authorize City Manager to execute the agreement and approve any necessarycontract amendment(s) up to 10% or $5,990.10.8 "Motte­Rancon Distribution Center" Environmental Impact Report AgreementsRECOMMENDED ACTION1. Approve a Developer Reimbursement Agreement between the City of Menifeeand Core5 Industrial Partners, LLC related to the Plot Plan No. 2019­005Project, located on Sherman Road, south of Ethanac Road: EnvironmentalImpact Report (EIR) preparation; and2. Adopt a Resolution appropriating $271,216 from available fund balance toAccount #100­4330­52825 (Professional Services (Recoverable)); and3. Approve a Professional Services Agreement with Kimley­Horn andAssociates Inc. in the not­to­ exceed amount of $246,560 for preparation of anEIR for the Plot Plan No. 2019­005 Project; and4. Authorize City Manager to execute the agreements and approve necessarycontract amendment(s) up to 10% or $24,656.10.9 Bond Reduction for Street and Drainage Improvements; Associated with Tract Map28789­1; Pinehurst, LLC.RECOMMENDED ACTION1. Approve 90% Bond Reduction of the faithful performance component a 100%reduction of the labor & materials component of the street and drainage bondfor Tract Map 28789­1, located south of Newport Road on the east side ofEvans Road.10.10 10% Warrantee Bond Release, TR 28790­2RECOMMENDED ACTION1. Approve the release of the 10% Warrantee Surety Rider for Private Street andDrainage Improvements associated with TR28790­2, which is a 12.65 grossacre 75­lot residential development within a Private Development south ofNewport Road between Evans Road and Winter Hawk Road. 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, MenifeeLand DV, LLCRECOMMENDED ACTION1. Approve and authorize City Manager to execute Lien Agreement allowing lien ona real property, located west of Murrieta Road, east of Geary Road, and north ofMcLaughlin Road, as form of security to guarantee completion of requiredpublic improvements for Tract 31856; and2. Approve and authorize City Manager to execute Subdivision ImprovementAgreements for Sewer, Road & Water for Tract 31856.10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & CaminoCristal Traffic SignalsRECOMMENDED ACTION1. Accept the Traffic Signal Improvements at Menifee Road and Holland Road,Project No. CIP 20­06; and2. Accept the Traffic Signal Improvements at Menifee Road and Camino CristalProject No. CIP 20­07; and3. Authorize the City Clerk’s Office to file the Notice of Completion for the TrafficSignals with the Riverside County Recorder’s Office.11. PUBLIC HEARING ITEMS 11.1 PLN20­0312, Appeal of Planning Commission Approval of Sumac Ridge (TTM No.37668) (CONTINUED)RECOMMENDED ACTION1. Continue the public hearing to the February 3, 2021 City Council Meeting.11.2 Annexation No. 36 to CFD 2015­2, Plot Plan 17­042, WellQuest Senior Living byWellQuest Menifee, LLCRECOMMENDED ACTION1. Annex territory, located north of Aldergate Drive and east of Antelope Road,owned by WellQuest Menifee LLC, (PP 17­042), into City of MenifeeCommunity Facilities District No. 2015­2 (Maintenance Services) ("CFD No.2015­2" or "CFD") by taking the following actions:a) Hold public hearing;b) Adopt the Resolution calling the election;c) Hold a special landowner election and canvass the election; andd) Adopt the Resolution declaring results of special landowner election.       2. Introduce an Ordinance amending Ordinance No. 2015­173, levying andapportioning the special tax in CFD No. 2015­2.11.3 Annexation No. 5 to CFD 2017­1 of Tract 36852, Del Oro Development by ForesterReal Estate inc.RECOMMENDED ACTION1. Amend the Annexation of territory located south of Holland Road, east ofHanover Lane, and west of Palomar Road, known as Del Oro (TR 36852) intoCity of Menifee Community Facilities District No. 2017­1 (MaintenanceServices) ("CFD No. 2017­1" or "CFD") by taking the following actionsa) Hold public hearing;b) Adopt the Resolution calling the election;c) Hold a special landowner election and canvass the election; andd) Adopt the Resolution declaring results of special landowner election.      2. Introduce an Ordinance amending Ordinance No. 2017­231, levying andapportioning the special tax in CFD No. 2017­1.12. DISCUSSION ITEMS 12.1 Comprehensive Annual Financial Report (CAFR) for Fiscal Year End June 30, 2020RECOMMENDED ACTION1. Receive and file the Comprehensive Annual Financial Report (CAFR), andother audit reports, for the Fiscal Year End June 30, 2020. 12.2 City Committee and Commission AppointmentsRECOMMENDED ACTION1. Councilmember Karwin to appoint each of the following a) PlanningCommissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DDCommittee Member, and d) Senior Advisory Committee Member; and2. Councilmember Liesemeyer to appoint each of the following a) Measure DDCommittee Member, and b) Senior Advisory Committee Member; and3. Mayor Pro Tem Sobek to appoint each of the following a) PlanningCommissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DDCommittee Member, and d) Senior Advisory Committee Member; and4. Councilmember Deines to appoint each of the following a) PlanningCommissioner, b) Measure DD Committee Member, and c) Senior AdvisoryCommittee Member; and5. Mayor Zimmerman to appoint each of the following a) Planning Commissioner,b) Parks, Recreation, and Trails Commissioner, c) Measure DD CommitteeMember, and d) Senior Advisory Committee Member.12.3 Donation Acceptance Policy, Revision No. 1RECOMMENDED ACTION 1. Discuss proposed revisions to the Donation Acceptance Policy; and 2. Adopt revisions to the Donation Acceptance Policy. 13. CITY ATTORNEY REPORTS  14. CITY MANAGER REPORTS  15. FUTURE AGENDA REQUESTS FROM COUNCIL MEMBERS  Ø Discuss strategy to address phase­out of illegal uses (Liesemeyer, July 18, 2018) Target Date: TBD Ø WRCOG presentation on Community Choice Aggregation (Liesemeyer, February 5, 2020) Target Date: TBD Ø Post Pandemic Report and Update on New Technology Implementations (Deines, April 15, 2020) Target Date: TBD Ø Discussion to Open DIF and Assess Park Allocations (Liesemeyer, June 17, 2020)  Target Date: TBD Ø Alarm Ordinance (Zimmerman, August 5, 2020) Target Date: March 2021 Ø Discuss hunting regulations within the City (Zimmerman, December 2, 2020) Target Date: TBD 16.ADJOURN  16.1 In honor and memory of City Planning Commissioner Earl Phillips. Menifee Mayor and City Council January 20,2021 Page 7 of 828 City of Menifee 2023 Strategic Visioning August 1, 2018 Item Title:5.2 Strategic Visioning Plan Update Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 8 of 828 City of Menifee Strategic Visioning Page | 2 Introduction The City of Menifee’s first Strategic Plan took effect in 2012, and the community principles it included still resonate today. The FY 2018 – FY 2023 Strategic Visioning Plan (Plan) builds upon our past strategic plan’s foundation while updating it for the future. This was accomplished through a collaborative effort whereby the City Council and City Staff were engaged through meetings guided by the City’s independent consultant. The result of this effort is a vision, measurable key objectives and action items, and alignment with adopted plans and policies. This Strategic Vision focuses the City’s resources on the efficient and effective use of resources to deliver City services. The purpose of this vision is to define goals and objectives that align with the City’s business goals and to improve the balance between demand for more and better technology and available City resources, including staff and capital and operating funds. This five-year Strategic Vision provides a roadmap that will help the City close the gap between current and future needs. The City’s Strategic Vision is to be updated annually to ensure that it remains current with the City’s evolving environment. The goals and objectives will be reviewed and any new initiatives will be added, or existing projects removed, based on the current business needs of the City over the short range (less than two years), medium range (three to four years), and long-range (five years plus). While not every idea that came up during the workshop or in smaller group meetings is evident in the proposed objectives, they all were essential steps in the process. Moreover, all the ideas are important to keep and consider as they may prompt the development of future programs or projects. It is crucial to maintaining this Plan as a “live“ document. The following steps should be taken to ensure its implementation results in the actions needed to realize the City Councils vision: 1. Link the budget process to the Strategic Vision by identifying and prioritizing projects and ties to the Plan’s goals; 2. Have Strategic Vision projects identified in regular agenda items and encourage department heads to include updates on their work on Strategic Vision related projects in their reports to the City Council; 3. Expect and encourage department heads to propose additional projects that further the five Strategic Vision goal statements; 4. Have the City’s Strategic Vision posted on the City’s website to ensure all City employees and the general public have access to the information; 5. Set time annually to evaluate and, when necessary, modify the Strategic Vision prior to the start of the City budget process. The City Manager is responsible for annual updates and collaborates with all City departments in the review process. The Plan is made available to all department staff and the general public through the City’s website. The commitment of all City departments is essential for the success of the City’s Strategic Vision and for the City to realize the associated benefits. All departments must work together to balance daily departmental operations while embracing citywide organizational changes resulting from technology initiatives. Item Title:5.2 Strategic Visioning Plan Update Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 9 of 828 City of Menifee Strategic Visioning Page | 3 Executive Summary The City defines the goals and objectives that align with the City’s Vision and needs. The Plan identifies a strategy in order for the City to successfully invest in and use appropriate resources to enable the City to support and improve service delivery. This Strategic Vision is focused on the City's Team. The City encourages collaboration with a team approach and all employees are considered part of ‘One Team’. The Plan provides a blueprint for the team to concentrate on as we provide services and position the City over the next five years. Located in Southern California, Menifee has a rich history. Over the past several years, there has been a concerted effort to diversify the economic base of the City and expand services thereby increasing the quality of life for Menifee residents. To develop this Strategic Plan a focus group was convened with representation from various levels of the organization. This group met on three occasions to discuss internal and external influences affecting the City. After the focus group completed their review, the Management Team met for a full day strategic visioning and implementation retreat. The Team confirmed the information developed by the focus group and, using that information, completed the mission statement and guiding principles for which the City Team is to operate. The mission statement that was created is stated below: "Through teamwork and leadership, the City of Menifee provides essential services to improve the quality of life of our community." The Goals and Objectives Implementation Plan describes the projects and their anticipated timelines. It is important to note that the projects may change over the five-year period as new projects are introduced and existing projects re-prioritized based on available staffing, capital, operating costs, and as a result of changes in technology. The City’s Vision and implementation plan is a roadmap that will help the City more closely align business goals and objectives with needs and support services. It is a living document that will be updated annually by the City Manager in collaboration with all City departments. The Plan is the first step in the strategic planning effort. To implement the projects, the City must develop detailed implementation plans that identify specific actions, schedules and timeframes, and resource requirements (staff, funding, etc.). Goal 1 – Safe & Attractive Community: The City of Menifee’s vision is: Provide a full range of services that meet the highest professional and accredited standards of public safety by protecting life, maintaining order and safeguarding property within our community. Goal 2 – Livable & Economically Prosperous Community: The City of Menifee’s vision is: Develop mechanisms to foster a robust economy, solid educational opportunities, and jobs. Item Title:5.2 Strategic Visioning Plan Update Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 10 of 828 City of Menifee Strategic Visioning Page | 4 Goal 3 – Responsive & Transparent Community Government: The City of Menifee’s vision is: Foster efficient multi-modal communication to inform and educate our community to develop a clear sense of place and establish our unique identity. Goal 4 – Accessible & Interconnected Community: The City of Menifee’s vision is: Create and maintain functionally appropriate, sustainable, accessible and high quality infrastructure and facilities. Specific objectives have been identified for each goal and more will be developed as this plan evolves. The plan is designed to be a flexible “live” document that can be adjusted depending upon the City’s needs through 2023. While this plan looks ahead five years, there have already been solid results and outcomes even as the process moves forward. Item Title:5.2 Strategic Visioning Plan Update Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 11 of 828 City of Menifee Strategic Visioning Page | 5 Menifee's Vision In 2023, Menifee is an inclusive city of kindness, with distinct, vibrant neighborhoods, a well-managed government, a safe community, flourishing arts, historic and cultural resources, recreation opportunities, a strong economy, thriving children and youth, environmental sustainability, with healthy residents of all ages making Menifee a sought-after community to develop partnerships and invest in. Making the Vision a Reality The vision for the community is a statement of the desired future. It reflects what the City wants to become. This vision drives the work of the City, guides how business is done, and informs the goals and objectives that are pursued. Our Community's vision contains four goal areas, objectives, and action items that the City is focused on achieving. To further understand and achieve our vision, each of these four goal areas is explained below. Although these goals are described separately, they are intertwined and impact one another. Accompanying each goal are three sections: 1. The first section contains a paragraph that describes what the goal means to the City. 2. The second section is a list of important deliverables or objectives for each goal. 3. The third section includes the action items (Actions), City’s plans, documents, and policies that support achieving each theme and related indicators. Finally, the City’s Visioning will provide a basis from which all members of the City staff can focus their efforts on continuous improvement, and with the use of metrics, understand the impact of their actions on goal achievement. DEFINITIONS: A GOAL represents an overarching area tied to City’s overall vision, while an OBJECTIVE represents the segregative achievements planned to obtain, and comprised from, the goals. Accordingly, ACTIONS provide the specific activities, investments or other endeavors planned to accomplish an objective. Item Title:5.2 Strategic Visioning Plan Update Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 12 of 828 City of Menifee Strategic Visioning Page | 6 Safe & Attractive Community In 2023, Menifee continues to strive to lead in all areas of public safety, to effectively address the safety and security needs of its community. The City is dedicated to maintaining a safe and secure living and working environment in partnership with those it serves by respectfully employing the highest professional standards and providing exceptional service to our community. Goal One: Provide a full range of services that meet the highest professional and accredited standards of public safety by protecting life, maintaining order and safeguarding property within our community. Key Objectives (through FY 2023): • Emphasize community policing strategies and crime prevention through regular interaction with residents, students, and business owners. • Provide effective and fiscally responsible municipal services in a manner which promotes a high standard of community life. • Improve Public Safety by delivering quality programs and services. • Develop mechanisms to enhance the appearance of the City and cultivate community pride through beautification projects, elimination of blight and graffiti. • Lead and coordinate disaster-related exercises to evaluate the City’s response capabilities to a disaster. Action Items (through FY 2019): • Local Control: Contract vs. Local Department • Active Code Enforcement • Aesthetics of the City Supporting City Plans, Documents, and Policies: • City General Plan • City Sidewalk Policy • City Municipal Code Item Title:5.2 Strategic Visioning Plan Update Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 13 of 828 City of Menifee Strategic Visioning Page | 7 Livable & Economically Prosperous Community In 2023, Menifee will have a viable economic engine which can support the needs and enhance the lifestyles of those living and working in our community. We will promote buildings and infrastructure development that are practical, aesthetically pleasing and in harmony with the community environment and surrounding landscape. Goal Two: Create and implement a comprehensive land use and economic development strategy, which results in a vibrant and diverse economy for the City of Menifee. Key Objectives (through FY 2023): • Cultivate proactive Economic Development mechanisms to enhance new drivers for industrial / manufacturing / clean technology / retail development. • Collaborate with economic development organizations and agencies to update and implement strategies to stimulate development. • Create a comprehensive economic development plan which includes strategies and policies that increase the quality of life for residents. • Review the zoning and preservation ordinances and ensure alignment with our economic development plan. • Update the General Plan and Housing Element to align with the City’s Vision. • Develop and implement standards and management plans for parks and right-of-ways. • Update and continue implementation of Community Service comprehensive long-range parks, property, and equipment plan. • Update the Parks, Trails, Open Space and Recreation Master Plan (Parks Master Plan) to continue to integrate the community’s vision and aspirations into a cohesive strategy and action plan to continue to guide the future development, renovation, management and activation of City parks, recreation facilities and trails. Action Items (through FY 2019): • Economic Development Plan • Sphere of Influence Analysis to determine future ultimate City Limits • Annexation • Parks and Trails / Enhance standards of the park system • Valley Wide Parks Transition • Cherry Hills Plaza Commercial Development Item Title:5.2 Strategic Visioning Plan Update Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 14 of 828 City of Menifee Strategic Visioning Page | 8 Supporting City Plans, Documents, and Policies: • City General Plan • City Sidewalk Policy • Development Code • Parks, Trails, Open Space & Recreation Master Plan • Capital Improvement Plan • Parks & Landscape Design Standards • Quimby & Mitigation Fee Ordinances Item Title:5.2 Strategic Visioning Plan Update Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 15 of 828 City of Menifee Strategic Visioning Page | 9 Responsive & Transparent Community Government In 2023, Menifee aims to provide a municipal government that is honest, transparent, dependable, inventive, creative, economical and ethical. The City of Menifee will foster a feeling of community spirit and identity as well as promote a sense of full citizen participation by welcoming and accommodating the needs and desires of current residents, future residents and visitors, where the spirit of volunteerism and neighbors work together for the common good to build a strong community. In doing so, Menifee will increase the effectiveness of its marketing, communications and outreach activities by expressing its core mission and fundamental strategies through considered media, social media, technological advances, or other channels to better engage the pubic and better deliver messages and government information as it relates to the City. Goal Three: Foster efficient multi-modal communication efforts to inform and educate our community to develop a clear sense of place and establish our unique identity. Key Objectives (through FY 2023): • Develop and implement a comprehensive public relations program for the City including traditional media as well as electronic media such as City website, Facebook, and Twitter to enhance community outreach. • Enhance communication and coordination between community groups, schools, etc. • Examine the City’s facility needs through 2023 and develop a plan to address identified needs. • To better manage our buildings, prepare and implement a long-range and comprehensive facility maintenance plan. • Provide timely, accurate information that is easy to access and understand and facilitate public participation in open meetings. Action Items (through FY 2019): • 90 Day Feasibility Study • Feasibility Study and Funding Options to Build Future City Hall • Partner with Mt. San Jacinto College • Increased Social Media Presence • Public Information Officer • Community Education Outreach Supporting City Plans, Documents, and Policies: • City General Plan • City Sidewalk Policy • Social Media Policy • Demographic Studies • Business Cluster Analysis Item Title:5.2 Strategic Visioning Plan Update Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 16 of 828 City of Menifee Strategic Visioning Page | 10 Accessible & Interconnected Community In 2023, Menifee values its history, honors its diverse communities, and respects its distinct, vibrant and walkable neighborhoods. The City is committed to sustaining a high quality of life in its urban, suburban and commercial areas. Menifee has complementary and varied architecture and a beautifully built environment, and the City ensures that new development and infill are compatible with the character of Menifee’s neighborhoods, natural environment, and historic resources. Menifee will have a highly effective infrastructure that enables the community activities of its citizens and businesses. Goal Four: Create and maintain functionally appropriate, sustainable, accessible and high quality infrastructure and facilities. Key Objectives (through FY 2023): • Examine the City’s infrastructure needs through 2023 and develop plan to address identified needs. • Continue maintaining and repairing the City’s 212 center lane miles of roads through the judicious use of funds while seeking additional funding opportunities. • Prepare and implement a comprehensive, long-range infrastructure plan including parking, streets, sewers, water mains, lighting, signs, traffic signals, pavement management, sidewalks and bridges. • To better manage our buildings, prepare and implement a long-range and comprehensive facility maintenance plan. • Create identifiable gateways into the City Action Items (through FY 2019): • Scott Road / 215 Improvement • Pavement Management Program • Holland Road Overpass • McCall Interchange Improvement • Identify Menifee at Entrances • Bradley Bridge Improvement Supporting City Plans, Documents and Policies: • City General Plan • City Sidewalk Policy • Capital Improvement Plan (CIP) • Pavement Management Program (PMP) Item Title:5.2 Strategic Visioning Plan Update Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 17 of 828 City of Menifee Strategic Visioning Page | 11 Community Values Along with the Vision, the following community values provide the foundation of the General Plan, and will help preserve or build upon the features or items that create the essence of Menifee. These Community Values were developed using the input from the General Plan Community Workshops and through a dialogue with the General Plan Advisory Committee (GPAC). Some of the values currently exist in the community, and others identify ideas that are considered essential components of the City but will be achieved over time. We value: 1. Small Town Atmosphere • We value our strong sense of community and civic pride. • We value that our City is comprised of a collection of smaller, yet distinctive community areas (Quail Valley, Sun City, etc.). • We value our historically rural character. • We value our historic and cultural resources and the responsibility we have to protect and promote areas of early physical, cultural or social importance in the City. • We value the ability to accommodate equestrian and rural estate uses within specific areas our city. • We value that our city is less crowded and congested than other, similar sized jurisdictions. 2. Balanced Growth • We recognize that, while growth is inevitable, we will accommodate it in a responsible and strategic manner. • We believe there should be a balance between open space, urban and rural development, as well as a balance between residential, commercial and industrial uses within our City. • We value focused growth in particular areas of the City in order to retain our natural open spaces. • We value our ability to provide a broad range residential housing types for our residents’ life stages and lifestyles. 3. Town Center/Urban Core • We value the creation of an activity center that provides a range of dining and entertainment options to our community and serves as a civic space. • We recognize the social and ceremonial importance of a central gathering place where we can interact with our neighbors and fellow residents and hold our annual community celebrations. • We desire a diverse range of entertainment opportunities within the Town Center core including dining, movie theaters, farmer’s markets, and similar uses that contribute to the sustainability of a vibrant and active space. 4. Infrastructure • We value the ability of our infrastructure (roadways, sewer, water, drainage, etc.) to keep up with the pace of new development. Item Title:5.2 Strategic Visioning Plan Update Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 18 of 828 City of Menifee Strategic Visioning Page | 12 5. Employment • We value the ability to live and work in same community. • We value the ability to accommodate a diverse mix of business types that will contribute to a fiscally sustainable City. • We actively seek to attract “clean industries,” professional businesses and medical technologies to the City to complement our existing jobs base. 6. Circulation • We value the accessibility to –and visibility of– our City due to its proximity to I‐215 Freeway. • We value north‐south and east‐west roadway linkages throughout the City that allow us to easily navigate through the community without utilizing the I‐215 freeway. • We value access to multi‐modal transportation options (pedestrian, bus, trolley, golf cart, rail) to travel within the City and to strategic destinations beyond City limits. 7. Natural Resources • We value the preservation of the views created by our scenic ridgelines, natural landforms, and rock features that are defining characteristics of our City. 8. Growth Opportunities • We value the growth potential of our undeveloped land, which provides opportunities for a comprehensive plan for future growth that is not available in jurisdictions that are already largely built out. 9. Recreation • We value the creation of parks that are evenly distributed throughout the City (east and west of the I‐215) • We value that our amenities are accessible by users of all ages. • We value our network of trails and the alternative recreational experience they provide. 10. Public Services • We value that our code enforcement, police and fire services are provided locally, providing a stronger sense of safety and investment in our community. • We value a single, unified school district to ensure that our schools are not competing internally or with other jurisdiction for resources, funding or quality of education. Item Title:5.2 Strategic Visioning Plan Update Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 19 of 828 City of Menifee Strategic Visioning Page | 13 Staff Values Our values drive behavior and support effective implementation of the mission, goals, objectives, and actions that lead us toward our vision. The City has identified five core values that are essential to the work we do. One Team We are a united team, working together with a purpose to be effective with open and responsive communication, respecting different ideas, valuing the contributions of all, trusting and holding each other accountable. Integrity We are committed and accountable to be responsible, honest, ethical, and fair in all aspects of our work. Integrity is the backbone of our operation. Customer Service We strive to exceed expectations and provide consistently positive, responsive and superior customer service with empathy and timely follow-up, empowered with the goal of being solutions oriented. Leadership We are approachable, respectful, and with confidence lead by example through sound independent decision making, with forward thinking, and doing what is right. Professional We are knowledgeable, reliable, efficient, and ethical, holding ourselves to high standards, improving the quality of life for our community. Item Title:5.2 Strategic Visioning Plan Update Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 20 of 828 City of Menifee Strategic Visioning Page | 14 Menifee’s Growth Largely recognized as a bedroom community, the residents of Menifee saw more for themselves and voted to incorporate in 2008. Thereafter the City began to plan for land uses and development opportunities. During this time, the housing market in the City of Menifee has been relatively strong. The population growth over the past 12 months has continued a multi years-long upward trend that has resulted in major changes in the retail sector of the City of Menifee as well as the expansion of housing development, mainly due to its affordability, cost of land, and reduced fee structure. Menifee continues to see its population grow, recently hitting record growth of 2.6% annually. With over 32 housing tracts on the books for development, Menifee is projected to surpass 100,000 residents by 2023, according to the State Department of Finance projections. With this record growth, it is no wonder why Menifee is seen as the fastest growing city in Southwest Riverside County, and 7th in SoCal. City of Menifee Total Population Annual Average % 2008 67,487 2009 75,707 2010 77,519 2.4 2011 78,836 1.7 2012 80,793 2.5 2013 82,476 2.1 2014 83,968 1.8 2015 85,801 2.2 2016 87,608 2.1 2017 89,552 2.2 2018 91,902 2.6 Item Title:5.2 Strategic Visioning Plan Update Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 21 of 828 City of Menifee Strategic Visioning Page | 15 Goals and Objectives Implementation Plan The Goals and Objectives Implementation Plan describes the projects and their anticipated timelines. It is important to note that the projects may change over the five-year period as new projects are introduced and existing projects are re-prioritized based on available resources, staffing, capital, operating costs, and as a result of changes in technology. The following Implementation Plan reflects the five goal areas that were identified by the City Council which are Public Safety, Land Use, City Hall, Infrastructure and Community Outreach. It should also be noted that City Hall and Community Outreach have been combined to form goal number three. Within each goal area are specific actions/tasks that are required to be complete to satisfy each listed objective. Furthermore, a Point of Contact (POC) from the City Staff has been identified as the responsible lead for each action/task as well as the anticipated completion date. This Goals and Objectives Implementation Plan will be utilized to ensure progress is made toward each goal. It also, makes it easier to figure out where to look for information or updates since there is a POC. This will eliminate confusion and streamline the process. Item Title:5.2 Strategic Visioning Plan Update Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 22 of 828 City of Menifee Strategic Visioning Page | 16 City of Menifee Strategic Plan 2018 Goals and Objectives Implementation Plan Goal Objective POC Action/task Required Anticipated Completion Date 1. Public Safety 1.1 Local Control: Contract vs. Local Department Armando G. Villa 1.1.1 Prepare an updated independent comprehensive Public Safety Services Study Sep-2018 Armando G. Villa 1.1.2 Financial Feasibility and comparison of existing services contract study Dec-2018 Armando G. Villa 1.1.3 Develop conceptual implementation plan Mar-2019 Armando G. Villa 1.1.4 Present for City Council consideration/action Jun-2019 1.2 Active Code Enforcement Colin McNie 1.2.1 Develop of Comprehensive Code Enforcement Plan Sep-2018 Colin McNie / Rutan & Tucker / Sarah Manwaring 1.2.2 Revise and update various municipal codes Jun-2020 Colin McNie 1.2.3 Develop Standard Operating Procedure for Department Sep-2018 Colin McNie 1.2.4 Prepare Staffing Plan Jun-2018 Colin McNie 1.2.5 Parking Enforcement Program Dec-2018 Colin McNie 1.2.6 Streetsweeping Program Dec-2018 Colin McNie 1.2.7 Nuisance abatement program Sep-2018 Colin McNie 1.2.8 Weed abatement Program Jun-2018 Rutan & Tucker 1.2.9 Enhanced City Attorney Services Jul-2018 Colin McNie 1.2.10 Abandoned Vehicle Abatement (AVA) Program Sep-2018 Colin McNie 1.2.11 Implementation of Code Enforcement Action Team (CAT) Dec-2018 Colin McNie / Jeff Wyman 1.2.12 Code Enforcement Software Update Jun-2018 Item Title:5.2 Strategic Visioning Plan Update Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 23 of 828 City of Menifee Strategic Visioning Page | 17 City of Menifee Strategic Plan 2018 Goals and Objectives Implementation Plan Goal Objective POC Action/task Required Anticipated Completion Date Colin McNie / Wendy Preece 1.2.13 Cost Recovery Program Sep-2018 Colin McNeil 1.2.14 Enhanced Citations Program Sep-2018 Colin McNie 1.2.15 Enhanced Collections Program Jul-2018 Colin McNie / Gina Gonzalez 1.2.16 Public Outreach Program Jun-2018 Colin McNie / Jon Nicks 1.2.17 Panhandling Enforcement Jul-2018 1.3 Aesthetics of the City Colin McNie 1.3.1 Signage Dec-2018 Colin McNie 1.3.2 Education Program with Business Owners Dec-2018 Colin McNie / Rutan & Tucker 1.3.3 Trash Can Ordinance Dec-2018 Colin McNie / Rutan & Tucker 1.3.4 Shopping Carts Ordinance Dec-2018 Colin McNie / Rutan & Tucker 1.3.5 Construction site screening Ordinance Dec-2018 Colin McNie / Rutan & Tucker 1.3.6 Graffiti abatement Program Dec-2018 Colin McNie / Rutan & Tucker 1.3.7 Private Property Parking Ordinance Dec-2018 Colin McNie / Rutan & Tucker 1.3.8 Commercial Property Parking Ordinance Dec-2018 Jon Nicks / Colin McNie 1.3.9 Vagrant Camps Clean-ups/Procedures/Enforcement Dec-2018 Jonathan Smith / Colin McNie 1.3.10 Illegal Dumping Enforcement Procedures Dec-2018 Colin McNie / Rutan & Tucker 1.3.11 Abandon Property Ordinance Dec-2018 Item Title:5.2 Strategic Visioning Plan Update Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 24 of 828 City of Menifee Strategic Visioning Page | 18 City of Menifee Strategic Plan 2018 Goals and Objectives Implementation Plan Goal Objective POC Action/task Required Anticipated Completion Date Cheryl Kitzerow 1.3.12 Development of Design guidelines for Commercial Buildings Jun-2019 2. Land Use 2.1 Sphere of Influence Analysis to Determine Future Ultimate City Limits Cheryl Kitzerow 2.1.1 Land Use Analysis Jan-2019 Cheryl Kitzerow 2.1.2 Public Services Analysis Jan-2019 Cheryl Kitzerow 2.1.3 Public Facilities Analysis Jan-2019 Cheryl Kitzerow 2.1.4 Outside Agencies Analysis Jan-2019 Cheryl Kitzerow 2.1.5 LAFCO Processing Jun-2019 2.2 Annexation Cheryl Kitzerow 2.2.1 General Plan Amendment / Comprehensive Update Jan-2021 Cheryl Kitzerow 2.2.2 Zoning Map Amendment Jan-2021 Cheryl Kitzerow 2.2.3 Pre-Zoning Jan-2021 Cheryl Kitzerow 2.2.4 CEQA Jan-2021 Cheryl Kitzerow 2.2.5 LAFCO Processing Jun-2021 Cheryl Kitzerow / Gina Gonzalez 2.2.6 Public Outreach Strategy Jun-2021 2.3 Parks & Trails/Enhance standards of park system Jon Nicks 2.3.1 Recalibrate the Quimby and DIF fee structure Dec-2018 Jon Nicks 2.3.2 Identify Multi-Use Facilities within new housing developments Jul-2018 Jon Nicks 2.3.3 Engage Landscape Architect for Regional Multi-use Facility at the Evans Property Sep-2018 2.4 Valley Wide Parks Transition Jon Nicks 2.4.1 Complete LAFCO Detachment Process Sep-2018 Jon Nicks 2.4.2 Develop Transition Plan Sep-2018 Item Title:5.2 Strategic Visioning Plan Update Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 25 of 828 City of Menifee Strategic Visioning Page | 19 City of Menifee Strategic Plan 2018 Goals and Objectives Implementation Plan Goal Objective POC Action/task Required Anticipated Completion Date Jon Nicks 2.4.3 Create Staffing Plan Sep-2018 Jon Nicks 2.4.4 Conduct Facility Condition Assessment Mar-2019 Jon Nicks 2.4.5 Establishing Maintenance and Capital Improvement Plan Mar-2019 Jon Nicks 2.4.6 Transition Assessment Funding Mar-2019 Jon Nicks 2.4.7 Transfer of Reserve from VW to City Mar-2019 Jon Nicks 2.4.8 Transfer of all Contracts, Easements, and Utilities Mar-2019 2.5 Cherry Hills Plaza Commercial Development Gina Gonzalez / Jeff Wyman 2.5.1 Analyze Commercial Property In Sun City Development May-2016 Gina Gonzalez / Jeff Wyman 2.5.2 Engage Property Owners Jun-2016 Gina Gonzalez / Jeff Wyman 2.5.3 Create Revitalization Plan Aug-2016 Gina Gonzalez / Jeff Wyman 2.5.4 Create Conceptual Rendering Aug-2016 Gina Gonzalez / Jeff Wyman 2.5.5 Develop Phase II of Revitalization Plan Sep-2018 Gina Gonzalez / Jeff Wyman 2.5.6 Engage Property Owners on Plan Oct-2018 Gina Gonzalez / Jeff Wyman 2.5.7 Assess Public Roadways and Right of Way Needs Sep-2018 Cheryl Kitzerow 2.5.8 Create Specific Plan or Development Overlay/CEQA Jan-2020 Gina Gonzalez / Jeff Wyman 2.5.9 Work with Property Owners to Create BID or CFD Jul-2019 Jonathan Smith 2.5.10 Public / ROW Improvement Plan Jan-2020 Item Title:5.2 Strategic Visioning Plan Update Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 26 of 828 City of Menifee Strategic Visioning Page | 20 City of Menifee Strategic Plan 2018 Goals and Objectives Implementation Plan Goal Objective POC Action/task Required Anticipated Completion Date 2.6 Focused Economic Development Plan Cheryl Kitzerow 2.6.1 EDC Update Jul-2019 Cheryl Kitzerow 2.6.2 Comprehensive Development Code Update Jul-2019 Gina Gonzalez 2.6.3 Create Econ Dev Strategic Plan Dec-2019 Gina Gonzalez 2.6.4 Foreign Direct Investment Strategy Dec-2019 Gina Gonzalez 2.6.5 Update Demographic Study Apr-2018 Gina Gonzalez 2.6.6 Hotel Market Feasibility Study Apr-2018 Gina Gonzalez 2.6.7 Health Needs Assessment Jun-2019 Gina Gonzalez 2.6.8 Retail and Office Space Study Oct-2018 Gina Gonzalez 2.6.9 Update Foreign Trade Zone to include Menifee Jun-2019 Gina Gonzalez 2.6.10 Business Cluster Analysis Apr-2019 Gina Gonzalez 2.6.11 Create robust workforce development plan Dec-2019 Gina Gonzalez 2.6.12 Develop tourism backbone Jun-2020 Gina Gonzalez 2.6.13 Develop EconDev website Aug-2018 Gina Gonzalez 2.6.14 Create Entrepreneurship Ecosystem Sep-2019 Gina Gonzalez 2.6.15 Streamline Development Process Jun-2019 Gina Gonzalez 2.6.16 Create Menifee Gardening Program for Business Retention and expansion efforts Jun-2019 Gina Gonzalez 2.6.17 Create Menifee Masters Ambassadors Program Oct-2019 3. City Hall 3.1 90 Day Feasibility Study Jeff Wyman 3.1.1 Space Needs Assessment for Permanent City Hall May-2017 Jeff Wyman / Charles Berglund 3.1.2 Assessment of Current City Hall Suitability and overall Compliance May-2018 Item Title:5.2 Strategic Visioning Plan Update Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 27 of 828 City of Menifee Strategic Visioning Page | 21 City of Menifee Strategic Plan 2018 Goals and Objectives Implementation Plan Goal Objective POC Action/task Required Anticipated Completion Date Jeff Wyman / Charles Berglund 3.1.3 Assessment of Cost to Expand Current City Hall May-2018 Jeff Wyman / Charles Berglund 3.1.4 Assessment of Avail Space to Lease May-2018 Jeff Wyman / Charles Berglund 3.1.5 Assessment of Cost to Lease Interim Facility May-2018 3.2 Feasibility Study and Funding Options to Build Future City Hall Jeff Wyman / Charles Berglund 3.2.1 Identify Financing Options Jun-2019 4. Infrastructure 4.1 Scott Rd / 215 Improvement Jonathan Smith 4.1.1 Execute TUMF Reimbursement Agreement Apr-2018 Jonathan Smith 4.1.2 Advertise for Construction Apr-2018 Jonathan Smith 4.1.3 Award of Bid Jun-2018 Jonathan Smith 4.1.4 Begin Construction Aug-2018 Jonathan Smith 4.1.5 Complete Construction Feb-2020 Gina Gonzalez 4.1.6 Public Outreach Feb-2020 Jonathan Smith 4.1.7 Develop Funding Strategy with WRCOG / County / RCTC Jan-2018 Jonathan Smith 4.1.8 Right of Way Acquisition Oct-2017 Jonathan Smith 4.1.9 Utility Coordination / Relocation Aug-2018 Jonathan Smith 4.1.10 Solicit Bids for Construction Management Feb-2018 Jonathan Smith 4.1.11 Select Construction Management Team Apr-2018 4.2 Pavement Management Program Jonathan Smith 4.2.1 Update Street Inventory Jun-2019 Jonathan Smith 4.2.2 Redefine Priority List Jun-2019 Jonathan Smith 4.2.3 Update Cost Estimate Jun-2019 Item Title:5.2 Strategic Visioning Plan Update Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 28 of 828 City of Menifee Strategic Visioning Page | 22 City of Menifee Strategic Plan 2018 Goals and Objectives Implementation Plan Goal Objective POC Action/task Required Anticipated Completion Date Jonathan Smith 4.2.4 Make recommendations to Council Aug-2019 4.3 Holland Rd Overpass Jonathan Smith 4.3.1 ROW Acquisition Dec-2019 Jonathan Smith / Wendy Preece 4.3.2 Develop Funding Strategy Dec-2019 4.4 McCall Interchange Improvement Jonathan Smith 4.4.1 Complete Final Design TBD Jonathan Smith 4.4.2 ROW Acquisition TBD Jonathan Smith 4.4.3 Develop Funding Strategy TBD 4.5 Identify Menifee at Entrances Jeff Wyman / Gina Gonzalez 4.5.1 Develop Menifee Gateway Sign Program "Welcome to Menifee" Dec-2018 Jeff Wyman / Gina Gonzalez / Jonathan Smith 4.5.2 Identify Placement Locations for Signage Dec-2018 Jeff Wyman / Gina Gonzalez / Jonathan Smith / Wendy Preece 4.5.3 Cost Estimate and Funding Strategy to implement Dec-2018 5. Community Outreach 5.1 Partner with MSJC Gina Gonzalez 5.1.1 Work with MSJC to identify opportunities to partner Sep-2018 Gina Gonzalez 5.1.2 Execute MOU outlining partnership Sep-2018 5.2 Social Media Increased Presence Gina Gonzalez / Charles Berglund 5.2.1 Develop Social Media Policy Jul-2018 Gina Gonzalez 5.2.2 Create staffing plan May-2018 PIO 5.2.3 Monitor Social Media platforms on-going Gina Gonzalez 5.2.4 Create marketing plan Oct-2018 Item Title:5.2 Strategic Visioning Plan Update Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 29 of 828 City of Menifee Strategic Visioning Page | 23 City of Menifee Strategic Plan 2018 Goals and Objectives Implementation Plan Goal Objective POC Action/task Required Anticipated Completion Date PIO 5.2.5 Create on-going content on-going Gina Gonzalez 5.2.6 Develop videos on-going PIO 5.2.7 Develop graphics materials on-going Gina Gonzalez 5.2.8 Create Menifee Minute Series on-going PIO 5.2.9 Create Live- feeds featuring Town Halls, and events on-going 5.3 Public Information Officer Gina Gonzalez 5.3.1 Create staffing plan May-2018 Daniel Alvarado 5.3.2 Recruit and Hire Sep-2018 PIO 5.3.3 Create Outreach Plan for content Oct-2018 5.4 Community Education Outreach PIO 5.4.1 Partner with Local HOA's on-going PIO 5.4.2 Town Halls on-going 6. Workforceand Facilities Management* 6.1 Workspace 6.1.1 Adequate Space for Staff and future recruitments 6.2 Staffing 6.2.1 Increase Expected Customer Service with Increased Staffing 6.3 Update Technology 6.3.1 Update antiquated systems and equipment 6.4 Maintenance Equipment 6.4.1 Invest in equipment to maintain City infrastructure *Goal six (6) was suggested by staff and incorporated in to each goal where appropriate. Item Title:5.2 Strategic Visioning Plan Update Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 30 of 828 City of Menifee Strategic Visioning Page | 24 Acknowledgements City Council •Mayor Neil R. Winter (Deceased) •Mayor Bill Zimmerman •Mayor Pro Tem Lesa Sobek •Greg August •John Denver •Matt Liesemeyer City Manager’s Office •Armando G. Villa, City Manager •Jeff Wyman, Assistant City Manager •Charles Berglund, Management Analyst Department Directors •Cheryl Kitzerow, Director of Community Development •Sarah Manwaring, City Clerk •Colin McNie, Director of Building & Safety / Code Enforcement •Jonathan Nicks, Director of Community Services •Wendy Preece, Acting Director of Finance •Jonathan Smith, Director of Public Works / City Engineer Department Liaisons •Daniel Alvarado, Human Resource Manager •Ty Davis, Battalion Chief •Gina Gonzalez, Economic Development Manager •Lisa Gordon, Planning Manager •Yolanda Macalalad, Assistant City Engineer Item Title:5.2 Strategic Visioning Plan Update Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 31 of 828 Goal Objective POC Action/task Required Completion DateCompleted1. Public Safety1.1Local Control: Contract vs. Local DepartmenArmando G. Villa 1.1.1Prepare an updated independent comprehensive Public Safety / Police Services StudySep-2018Armando G. Villa 1.1.2Financial Feasibility and comparison of existing services contract studyDec-2018Armando G. Villa 1.1.3 Develop conceptual implementation planMar-2019Armando G. Villa 1.1.4 Present for City Council consideration/actionJun-20191.2 Active Code Enforcement Cheryl Kitzerow/Lionel Martinez 1.2.1Develop of Comprehensive Code Enforcement PlanDec-2019Captain Gutierrez/Rutan & Tucker 1.2.2 Revise and update various municipal codesJun-2021Cheryl Kitzerow/Lionel Martinez 1.2.3Develop Standard Operating Procedure for DepartmentDec-2019Colin McNie 1.2.4 Prepare Staffing PlanJun-2018Colin McNie 1.2.5 Parking Enforcement ProgramDec-2018Captain Gutierrez/Jon Nicks1.2.6 Street sweeping Enforcement ProgramTBD Colin McNie 1.2.7 Nuisance abatement programSep-2018Colin McNie 1.2.8 Weed abatement ProgramJun-2018Rutan & Tucker 1.2.9 Enhanced City Attorney ServicesJul-2018Colin McNie 1.2.10 Abandoned Vehicle Abatement (AVA) ProgramSep-2018Colin McNie 1.2.11Implementation of Code Enforcement Action Team (CAT)Dec-2018Colin McNie/Jeff Wyman 1.2.12 Code Enforcement Software UpdateJun-2018Colin McNie/Wendy Preece 1.2.13 Cost Recovery ProgramSep-2018Colin McNeil 1.2.14 Enhanced Citations ProgramSep-2018City of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatusJanuary 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 25Menifee Mayor and City Council                                                                               January 20, 2021Page 32 of 828 Goal Objective POC Action/task Required Completion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatusCaptain Gutierrez/Rochelle Clayton 1.2.15 Enhanced Collections Program Jun-2020Colin McNie/Gina Gonzalez 1.2.16 Public Outreach Program Feb-2019Colin McNie/Jon Nicks 1.2.17 Panhandling EnforcementJul-20181.3 Aesthetics of the City Colin McNie 1.3.1 SignageDec-2018Colin McNie 1.3.2 Education Program with Business OwnersDec-2018Colin McNie / Rutan & Tucker 1.3.3 Trash Can OrdinanceDec-2018Colin McNie / Rutan & Tucker 1.3.4 Shopping Carts OrdinanceDec-2018Colin McNie / Rutan & Tucker 1.3.5 Construction site screening OrdinanceDec-2018Colin McNie / Rutan & Tucker 1.3.6 Graffiti abatement ProgramDec-2018Colin McNie / Rutan & Tucker 1.3.7 Private Property Parking OrdinanceDec-2018Colin McNie / Rutan & Tucker 1.3.8 Commercial Property Parking OrdinanceDec-2018Jon Nicks / Colin McNie 1.3.9Vagrant Camps Clean-ups/Procedures/EnforcementDec-2018Jonathan Smith / Colin McNie 1.3.10 Illegal Dumping Enforcement ProceduresDec-2018Colin McNie / Rutan & Tucker 1.3.11 Abandon Property OrdinanceDec-2018Cheryl Kitzerow 1.3.12Development of Design guidelines for Commercial BuildingsMar-2020Added May 7, 2019 1.4 Police Department FormationPat Walsh / Jeff Wyman / Dave Brown / Colin McNie / Imelda Huerta/ Allen Yun/ Rochelle Clayton/ Daniel Alvarado/ Michelle Sarkissian 1.4.1 Acquire & retrofit police facilitiesMar-20201.4.2 Recruit & hire sworn and professional staffJun-20201.4.3 Develop & implement department training programMay-20201.4.4 Procure & outfit police vehicle fleetMay-20201.4.5 Adopt dispatch and radio agreement w/ MurrietaAug-2019January 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 26Menifee Mayor and City Council                                                                               January 20, 2021Page 33 of 828 GoalObjectivePOCAction/task RequiredCompletion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatus1.4.6 Implement dispatch & radio agreementApr-20201.4.7 Draft & adopt policy / procedures manualMay-20201.4.8 Design and authorize department badge/patchJan-20201.4.9 Analyze adequacy of public safety DIFJul-2021Added March 12, 2020 1.5 New Quail Valley StationJeff Wyman, Rochelle Clayton, Yolanda Macalalad, Carlos Geronimo, Imelda Huerta, Kirk BarnettNov-2020Jul-2021Feb-20221.5.1 Response Time Assessment 1.5.2 Funding Strategy1.5.3 Design and Environmental 1.5.4 ConstructionDec-2022Added March 12, 2020 1.6 Fire Services Citywide Needs AssessmentJeff Wyman, Rochelle Clayton, Yolanda Macalalad, Carlos Geronimo, Imelda Huerta, Kirk Barnett1.6.1 Fire Dept. Strategic Plan Dec-2021January 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 27Menifee Mayor and City Council                                                                               January 20, 2021Page 34 of 828 GoalObjectivePOCAction/task RequiredCompletion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatus2. Land Use2.1Sphere of Influence Analysis to Determine Future Ultimate City Limits Cheryl Kitzerow 2.1.1 Land Use Analysis TBD Cheryl Kitzerow2.1.2 Public Services AnalysisTBD Cheryl Kitzerow2.1.3 Public Facilities AnalysisTBD Cheryl Kitzerow2.1.4 Outside Agencies AnalysisTBD Cheryl Kitzerow2.1.5 LAFCO ProcessingTBD 2.2 AnnexationCheryl Kitzerow2.2.1 General Plan Amendment / Comprehensive UpdateTBD Cheryl Kitzerow2.2.2 Zoning Map AmendmentTBD Cheryl Kitzerow2.2.3 Pre-Zoning TBD Cheryl Kitzerow2.2.4 CEQATBD Cheryl Kitzerow2.2.5 LAFCO ProcessingTBD Cheryl Kitzerow/Gina Gonzalez 2.2.6 Public Outreach Strategy TBD 2.3Parks & Trails/Enhance standards of park systemJon Nicks2.3.1a Recalibrate the Quimby fee structureDec-2019Jon Nicks2.3.1b Recalibrate the DIF fee structureJul-2021Jon Nicks2.3.2Identify Multi-Use Facilities within new housing developmentsJul-2018Jon Nicks2.3.3Conceptual Design for Regional Multi-use Facility at the Evans PropertyFeb-2020Jon Nicks2.3.3a Phased Plan for Evans Property Jul-2022Added March 12, 2020Jon Nicks2.3.4 Form Parks-Related Nonprofit Jul-2023January 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 28Menifee Mayor and City Council                                                                               January 20, 2021Page 35 of 828 GoalObjectivePOCAction/task RequiredCompletion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatusJon Nicks2.3.5Open Space/Nature Preserve Conservation Effort (Open Space Purchases)OngoingAdded March 12, 2020 Added May 7, 2019Jon Nicks / Cheryl Kitzerow2.3.6Review opportunities for Regional multi-use sports facilities within new developments.Ongoing2.4 Valley Wide Parks TransitionJon Nicks / Rutan & Tucker2.4.1 Complete LAFCO Detachment ProcessTBDJon Nicks / Rutan & Tucker2.4.2 Develop Transition PlanTBDJon Nicks / Rutan & Tucker2.4.3 Create Staffing PlanTBDJon Nicks / Rutan & Tucker2.4.4 Conduct Facility Condition AssessmentTBDJon Nicks / Rutan & Tucker2.4.5Establishing Maintenance and Capital Improvement Plan TBDJon Nicks / Rutan & Tucker2.4.6 Transition Assessment Funding TBDJon Nicks / Rutan & Tucker2.4.7 Transfer of Reserve from VW to CityTBDJon Nicks / Rutan & Tucker2.4.8 Transfer of all Contracts, Easements, and UtilitiesTBD2.5Cherry Hills Plaza Commercial DevelopmentGina Gonzalez/Jeff Wyman2.5.1Analyze Commercial Property In Sun City DevelopmentMay-2016Gina Gonzalez/Jeff Wyman2.5.2 Engage Property Owners Jun-2016Gina Gonzalez/Jeff Wyman2.5.3 Create Revitalization PlanAug-2016Gina Gonzalez/Jeff Wyman2.5.4 Create Conceptual RenderingAug-2016Gina Gonzalez/Jeff Wyman2.5.5 Develop Phase II of Revitalization PlanSep-2018Gina Gonzalez/Jeff Wyman2.5.6a Engage Property Owners on PlanJul-2019Cherry Hills Plaza Commercial DevelopmentGina Gonzalez/Jeff Wyman/Yolanda MacalaladOn HoldYolanda Macalalad2.5.6b Assess Public Roadways and Right of Way Needs 2.5.6c Public / ROW Improvement PlanOn Hold2.6 Economic Development PlanCheryl Kitzerow2.6.1EDC UpdateDec-2019Cheryl Kitzerow2.6.2 Comprehensive Development Code UpdateDec-2019January 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 29Menifee Mayor and City Council                                                                               January 20, 2021Page 36 of 828 Goal Objective POC Action/task Required Completion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatusGina Gonzalez 2.6.3Create Econ Dev Strategic PlanDec-2019Gina Gonzalez 2.6.4 Foreign Direct Investment Strategy On Hold Gina Gonzalez 2.6.5 Update Demographic StudyApr-2018Gina Gonzalez 2.6.6 Hotel Market Feasibility StudyApr-2018Gina Gonzalez 2.6.7 Health Needs Marketing Study Dec-2020Gina Gonzalez 2.6.8 Retail and Office Space StudyDec-2019Gina Gonzalez 2.6.9 Update Foreign Trade Zone to include MenifeeOngoingGina Gonzalez 2.6.10 Business Cluster AnalysisApr-2019Gina Gonzalez 2.6.11 Create robust workforce development planDec-2021Gina Gonzalez 2.6.12 Develop tourism backboneJun-2022Gina Gonzalez 2.6.13 Develop EconDev websiteAug-2018Gina Gonzalez 2.6.14 Create Entrepreneurship EcosystemSep-2019Gina Gonzalez/Cheryl Kitzerow 2.6.15 Streamline Development ProcessJun-2019January 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 30Menifee Mayor and City Council                                                                               January 20, 2021Page 37 of 828 Goal Objective POC Action/task Required Completion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatusGina Gonzalez 2.6.16Create Menifee Gardening Program for Business Retention and expansion effortsJun-2019Gina Gonzalez 2.6.17 Create Menifee Masters Ambassadors ProgramApr-2019Added May 7, 2019Gina Gonzalez/Jeff Wyman 2.6.18Create Incentive Program to Fast Track DevelopmentTBD - In ProcessGina Gonzalez 2.6.19 Develop Incubator Dec-20213. City Hall3.1 90 Day Feasibility Study Jeff Wyman 3.1.1 Space Needs Assessment for Permanent City HallMay-2017Jeff Wyman / Charles Berglund 3.1.2Assessment of Current City Hall Suitability and overall Compliance May-2018Jeff Wyman/ Charles Berglund 3.1.3 Assessment of Cost to Expand Current City HallMay-2018Jeff Wyman/ Charles Berglund 3.1.4 Assessment of Avail Space to Lease May-2018Jeff Wyman/ Charles Berglund 3.1.5 Assessment of Cost to Lease Interim Facility May-20183.2Feasibility Study and Funding Options to Build Future City Hall Jeff Wyman/ Imelda Huerta/ Rochelle Clayton 3.2.1 Update Space Analysis/Feasibility StudyMar-2021Rochelle Clayton3.2.2 Financing OptionsJun-2021January 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 31Menifee Mayor and City Council                                                                               January 20, 2021Page 38 of 828 Goal Objective POC Action/task Required Completion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatus4. Infrastructure4.1 Scott Rd / 215 Improvement Yolanda Macalalad4.1.1 Execute TUMF Reimbursement Agreement Apr-2018Yolanda Macalalad4.1.2 Advertise for ConstructionApr-2018Yolanda Macalalad4.1.3 Award of BidJun-2018Yolanda Macalalad4.1.4 Begin Construction Aug-2018Yolanda MacalaladCarlos Geronimo4.1.5 Complete Construction / Grand OpeningJun-2020Gina Gonzalez 4.1.6 Public OutreachJun-2020Yolanda Macalalad4.1.7Develop Funding Strategy with WRCOG / County / RCTC Jan-2018Yolanda Macalalad4.1.8 Right of Way Acquisition Oct-2017Yolanda Macalalad4.1.9 Utility Coordination / RelocationFeb-2020Yolanda Macalalad4.1.10 Solicit Bids for Construction ManagementFeb-2018Yolanda Macalalad4.1.11 Select Construction Management TeamApr-20184.2 Pavement Management ProgramYolanda Macalalad4.2.1 Update Street InventoryUpdated AnnuallyYolanda Macalalad4.2.2 Redefine Priority ListUpdated AnnuallyYolanda Macalalad4.2.3 Update Cost EstimateUpdated AnnuallyYolanda Macalalad4.2.4 Make recommendations to CouncilUpdated Annually4.3 Holland Rd OverpassYolanda Macalalad/Carlos Geronimo4.3.1 ROW AcquisitionAug-2022Yolanda Macalalad/Rochelle Clayton/Carlos Geronimo4.3.2 Develop Funding StrategyTBD4.4 McCall Interchange ImprovementYolanda Macalalad/Carlos Geronimo4.4.1 Complete Final DesignMar-2023Yolanda Macalalad/Carlos Geronimo4.4.2 ROW AcquisitionMar-2023Yolanda Macalalad/Carlos Geronimo4.4.3 Develop Funding Strategy Dec-2021January 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 32Menifee Mayor and City Council                                                                               January 20, 2021Page 39 of 828 GoalObjectivePOCAction/task RequiredCompletion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatus4.5Identify Menifee at Entrances (includes wayfinding signage)Jeff Wyman / Gina Gonzalez/Yolanda Macalalad/Cheryl/Jon4.5.1a Develop Menifee Gateway Sign ProgramJun-2021Identify Menifee at Entrances (includes wayfinding signage)Jeff Wyman / Gina Gonzalez/Yolanda Macalalad/Cheryl/Jon4.5.1b Identify Placement Locations for Signage Jun-2021Jeff Wyman / Gina Gonzalez/Yolanda Macalalad/Rochelle Clayton/Cheryl/Jon Nicks4.5.1c Cost Estimate and Funding Strategy to implementDec-2021Added May 7, 2019 4.6 Garbani InterchangeYolanda Macalalad/Carlos Geronimo4.6.1Identify Purpose and Need / Project Initiation Documents (PID)Sep-2022Yolanda Macalalad/Carlos Geronimo4.6.2Develop Funding StrategyTBD4.6.3Preliminary Study Report / Project Development Study (PSR/PDS)TBD4.6.4Project Approval and Environmental Documents (PA&ED)TBD4.6.5 Plans, Specifications and Estimates (PS&E)TBD4.6.6 ROW Acquisition, Agreements and PermitsTBD4.6.7 Bid and AdvertiseTBD4.6.8 Start ConstructionTBDYolanda Macalalad/Jeff Wyman/Carlos Gonzalez/Jon Nicks4.7.1Begin process of "welcome mat" landscaping beautification at main corridors TBDAdded March 12, 2020 4.7 "Welcome Mat" Program Added March 12, 2020Yolanda Macalalad/Jeff Wyman/Carlos Geronimo/Jon Nicks4.7.2Milestones for phased design of off ramps beautification - TBDTBDAdded March 12, 2020 4.8Northern/Southern Gateway (create incentive program)*Gina Gonzalez/Rochelle Clayton/Cheryl Kitzerow/Yolanda Macalalad4.8.1 Master Drainage Plan DevelopmentFeb-20214.8.2 Identify FacilitiesTBD4.8.3 Funding SourcesTBD4.8.4 Create Incentive ProgramTBD*Objectives added by GG 12/16/20204.8.5Complete industry studies to understand key industry's targetJan-2021January 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 33Menifee Mayor and City Council                                                                               January 20, 2021Page 40 of 828 GoalObjectivePOCAction/task RequiredCompletion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatus4.8.6 Meet w/CEDS committee to narrow searchFeb-20214.8.7 Create incentive plan for key industry growth TBDAdded March 12, 2020 4.9 Bradley Bridge over Salt CreekYolanda Macalalad4.9.1 Tasks TBDTBDAdded March 12, 2020 4.10 Smart Cities for InfrastructureJonathan Nicks/Cheryl Kitzerow/Yolanda Macalalad 4.10.1 Develop Strategy Plan On HoldJanuary 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 34Menifee Mayor and City Council                                                                               January 20, 2021Page 41 of 828 GoalObjectivePOCAction/task RequiredCompletion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatus5. Community Outreach5.1 Partner with MSJC Gina Gonzalez 5.1.1 Work with MSJC to identify opportunities to partnerSep-2018Gina Gonzalez/Jonathan Nicks/Dominique Samario5.1.2 Execute MOU outlining partnershipJul-20215.2 Social Media Increased PresenceImelda Huerta/Dominique Samario/Subcommittee5.2.1 Develop Social Media PolicyJun-2021Gina Gonzalez5.2.2 Create staffing plan May-2018Gina Gonzalez 5.2.3 Monitor Social Media platformsOngoingGina Gonzalez 5.2.4 Create response planJul-2019Gina Gonzalez 5.2.5 Create on-going contentOngoingGina Gonzalez 5.2.6 Develop videosOngoingGina Gonzalez 5.2.7 Develop graphics materialsOngoingGina Gonzalez 5.2.8 Create Menifee Minute SeriesOngoingGina Gonzalez 5.2.9Create Live- feeds featuring Town Halls, and eventsOngoing5.3 Public Information Officer Gina Gonzalez 5.3.1 Create staffing planMay-2018Daniel Alvarado 5.3.2 Recruit and HireMay-2019Gina Gonzalez 5.3.3 Create Communications Plan for contentJul-20195.4 Community Education OutreachJeff Wyman/Dominique Samario 5.4.1 Partner with Local HOA's OngoingJeff Wyman/Dominique Samario 5.4.2 Town HallsOn HoldAdded May 7, 2019Jeff Wyman/Jon Nicks/Dominique Samar5.4.3 Town Halls at Local Events On HoldJanuary 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 35Menifee Mayor and City Council                                                                               January 20, 2021Page 42 of 828 GoalObjectivePOCAction/task RequiredCompletion DateCompletedCity of Menifee Strategic Plan 2018Goals and Objectives Implementation Plan - January 2021 UpdateStatus5.4.4Public recognition for youths & college students' contributions (include "stories")On Hold5.5.1 Identify partnersOn HoldAdded March 12, 2020 Jon Nicks/Dominique Samario Added March 12, 2020 5.5 Create Health Care /Medical Partnerships Jon Nicks/Dominique Samario Added March 12, 2020 Jon Nicks/Gina Gonzalez5.5.2 Execute MOUsOn HoldAdded March 12, 2020 5.6Public Records, Open Access & Public TransparencySarah Manwarring5.6.1 Easy Access Online Records RequestMar-2020Sarah Manwarring5.6.2Online Records Lookup (Laserfiche Public Portal)Mar-2021Sarah Manwarring5.6.3 2020 Elections Information PageJul-2020Sarah Manwarring5.6.4 Updated Agenda Management System Jan-2021Cheryl Kitzerow, Craig Carlson, Yolanda Macalalad, IT5.6.5 Accela Citizens Access / online permitting portalJan-2021Margarita Cornejo, Imelda Huerta, IT 5.6.6 OpenGovMay-20216. Workforce and Facilities Management*6.1 WorkspaceJeff Wyman6.1.1 Adequate Space for Staff and future recruitmentsMay-20196.2 StaffingRochelle Clayton6.2.1Increase Expected Customer Service with Increased StaffingOngoing6.3 Update TechnologyJeff Wyman/Michelle Sarkissian/Cheryl Kitzerow6.3.1 Update antiquated systems and equipmentOngoing6.4 Maintenance EquipmentJon Nicks6.4.1 Invest in equipment to maintain City infrastructureOngoingAdded by IH (see 5/7 mtg) 6.5 Maintenance BuildingJon Nicks6.5.1 Screening at Maintenance BuildingJul-2021* Goal six (6) was suggested by the City StaffJanuary 20, 2021Item Title: 5.2 Strategic Visioning Plan UpdateItem Page Number: 36Menifee Mayor and City Council                                                                               January 20, 2021Page 43 of 828 Virtual Meeting Menifee City Council Via Zoom Regular Meeting Minutes Menifee, CA 92586 Wednesday, December 16, 2020 6:00 PM Regular Meeting Closed Session Following Regular Meeting Bill Zimmerman, Mayor Greg August, District 1 Matthew Liesemeyer, District 2 Armando G. Villa, City Manager Lesa Sobek, District 3 Jeffrey T. Melching, City Attorney Dean Deines, District 4 Sarah A. Manwaring, City Clerk MINUTES REGULAR MEETING (6:00 P.M.) 1. CALL TO ORDER Mayor Zimmerman called the meeting to order at 6:00 P.M. 2. ROLL CALL Attendee Name Title Status Bill Zimmerman Mayor Present Greg August District 1 Absent Lesa Sobek District 3 Present Matt Liesemeyer District 2 Present Dean Deines District 4 Present 3. WORDS OF INSPIRATION Pastor Gregory Perkins, The View Church 4. PLEDGE OF ALLEGIANCE Mayor Pro Tem Liesemeyer led the flag salute. 5. PRESENTATIONS None. 6. AGENDA APPROVAL OR MODIFICATIONS The agenda was approved unanimously (4-0-1, August absent) with no modifications. 7. PUBLIC COMMENTS (NON-AGENDA ITEMS) City Clerk Sarah Manwaring read public comments submitted by the following. Ms. Miller Don Slater Carrie Tate Meyer 8. COUNCILMEMBER UPDATES AND COMMENTS Councilmember Sobek reported on the meeting she attended. Board of Directors Regional Conservation Authority (RCA) Meeting Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 44 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 2 of 11 Mayor Pro Tem Liesemeyer reported on the meetings and events he attended. Western Riverside Council of Governments (WRCOG) Meeting Public Safety Meeting Murrieta City Council Meeting Mayor Zimmerman and the Council requested Certificates of Appreciation for retiring Murrieta Police Chief Sean Hadden and Murrieta City Clerk Stephanie Smith. Mayor Zimmerman reported on the meetings and events he attended. Menifee Emergency Operations Center (EOC) Meeting Spark of Love Toy Drive-Thru and Food Donation for the Community Cupboard Community Partners Meeting Perris Union High School Student of the Month Riverside County Transportation Commission (RCTC) Meeting Mayor Zimmerman announced that Saturday, December 19, 2020 the Rotary Club would be hosting a drive-thru toy drive for Kids for Santa at the Boys and Girls Club. Mayor Pro Tem Liesemeyer noted that he had submitted comments to the Temecula City Council meeting, in regard to Temecula Councilmember Mike Naggar retiring. 9. APPROVAL OF MINUTES The minutes listed below were approved unanimously (4-0-1, August absent) with no modifications. 9.1. Approval of Minutes of December 2, 2020 Special Joint Workshop 9.2. Approval of Minutes of December 2, 2020 Regular Meeting 10. REORGANIZATION 10.1. 2020 General Municipal Election Results City Clerk Sarah Manwaring provided a presentation and reported on the background; voter turnout; Mayor at-large vote results; District 1 vote results; District 3 vote results; Measure M - 1% Sales Tax Repeal vote results; and staff's recommendation. ACTION Adopted Resolution No. 20-983, declaring the results of the November 3, 2020 General Municipal Election and reciting such other matters as provided by law. RESULT:Adopted [Unanimous] MOVER:Dean Deines SECONDER:Matt Liesemeyer AYES:Zimmerman, Sobek, Liesemeyer, Deines ABSENT:August Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 45 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 3 of 11 10.2. Privilege of the Floor Extended to Outgoing Councilmember Greg August City Clerk Sarah Manwaring read a statement provided by outgoing Councilmember Greg August. Ms. Manwaring also stated there were items for Mr. August from the Council and the City in recognition of his service and staff would make sure he received them. Ms. Manwaring read a public comment submitted by Rick Croy. The members of the City Council stated their appreciation and recognized Councilmember August for his dedication to District 1 and the City. 10.3. Presentation of Certificates of Election City Clerk Sarah Manwaring administered the Oath of Office to Councilmember Bob Karwin, Councilmember Lesa Sobek and Mayor Zimmerman and presented them with their Certificates of Election. 10.4. RECESS FOR REORGANIZATION Mayor Zimmerman called for a recess at 6:41 p.m. and reconvened the meeting at 6:53 p.m. 10.5. Roll Call of Seated City Council City Clerk Sarah Manwaring called the roll of the newly seated City Council. Present were Councilmembers Deines, Karwin, Sobek, Mayor Pro Tem Liesemeyer and Mayor Zimmerman. 10.6. Privilege of the Floor Extended to Councilmember Lesa Sobek, Incoming Councilmember Bob Karwin and Mayor Bill Zimmerman Councilmember Sobek thanked the community, her colleagues, her family and friends for their support during the election and the City staff for their work. Councilmember Karwin stated the reasons why he ran to be on the City Council and recognized and thanked Greg August, Lori Stone, his wife and the citizens of Menifee for their support during the election. Mayor Zimmerman congratulated and welcomed Councilmembers Sobek and Karwin. Mayor Zimmerman thanked staff for the work they do and thanked the community and businesses for their support. 10.7. Selection of Mayor Pro Tem Mayor Zimmerman stated it had been best practice for Council to appoint the Mayor Pro Tem in order of districts and Councilmember Sobek representing District 3, would be next in line. Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 46 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 4 of 11 ACTION Appointed Councilmember Lesa Sobek as Mayor Pro Tem. RESULT:Adopted [Unanimous] MOVER:Dean Deines SECONDER:Matt Liesemeyer AYES:Karwin, Zimmerman, Sobek, Liesemeyer, Deines Mayor Zimmerman stated his appreciation to Councilmember Liesemeyer for his service as Mayor Pro Tem. 10.8. 2021 Appointments to Regional Boards and Commissions Mayor Zimmerman introduced the item and announced his choices for Council appointments to regional boards. The City Council discussed the appointments, and they were approved as follows. Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 47 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 5 of 11 ACTION The appointments were approved by the following vote. RESULT:Adopted [Unanimous] MOVER:Lesa Sobek SECONDER:Matt Liesemeyer AYES:Karwin, Zimmerman, Sobek, Liesemeyer, Deines 11. CONSENT CALENDAR Councilmember Liesemeyer requested to pull Item No. 11.13. Mayor Pro Tem Sobek requested to pull Item Nos. 11.4, 11.13 and 11.14. The balance of the Consent Calendar was approved by the following vote. RESULT:Adopted [Unanimous] MOVER:Matt Liesemeyer SECONDER:Lesa Sobek AYES:Karwin, Zimmerman, Sobek, Liesemeyer, Deines 11.1. Waiver of Reading in Full of Any and all Ordinances Listed on this Agenda and Provide that they be read by Title Only 11.2. Warrant Register ACTION Ratified and approved the Voucher List dated 11/20/2020, the Payroll Register/Other EFT’s dated 11/24/2020, 11/25/2020, 11/27/2020, and the Void Check Listing PE 11/30/2020 which have a total budgetary impact of $3,471,615.28. 11.3. Technology Services Agreement for OpenGov Software ACTION 1. Approved three-year Technology Services Agreement with Carahsoft Technology Corporation for OpenGov (Software-As-A-Service, “SaaS”) Budgeting, Planning and Transparency/Reporting portal solution in the not- Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 48 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 6 of 11 to-exceed amount of $140,915 from Account #301-4221-52214 (CARES Act Funds); and 2. Exempt purchase from competitive bidding as purchase will be made under a cooperative purchasing (piggyback) agreement, as allowed under the Menifee Municipal Code Section 3.12.070 (6), pursuant to the National Association of State Procurement Officials (NASPO) ValuePoint Cooperative Purchasing Organization’s Cloud Solution 2016-2026 Contract #AR2472, State of California Participating Addendum No. 7-17-70-40-05. 11.4. This Item was moved to Items Pulled from Consent 11.5. Visionaries Image Company Contract Amendment ACTION Approved Amendment No. 1 with Visionaries Image Co. for FY 20/21 Videography and Editing Services, in the not-to-exceed amount of $21,800, for a revised total aggregate not-to-exceed amount of $51,800. 11.6. Language Line Services Contract Amendment No. 2 ACTION Approved Amendment No. 2 with Language Line Services, Inc., Professional Services Agreement for Comprehensive Interpretation Services, extending the term of services through June 30, 2021. 11.7. Hidden Hills Development Agreement Amendment Ordinance Adoption ACTION Adopted Ordinance No. 2020-313, approving the first amendment to Development Agreement No. 2009-149 for the Hidden Hills Development. 11.8. Bond Replacement for Tract 28786, 28791, 28792, 28793, 28794 by Lennar Homes of California, Inc. ACTION 1. Approved the replacement bonds and agreements for streets and drainage, water system, recycled water, and sewer system for Tract 28786, 28791, 28792, 28793 and 28794, a proposed development, by Lennar Homes of California, of 379 residential lots located south of La Piedra Road, north of Holland Road and east and west of Evans Road; and 2. Approved the release of existing bonds and agreements for Tract 28786, 28791, 28792, 28793, 28794 for streets and drainage, water system, recycled water, and sewer system for Pinehurst, LLC (also known as Pacific Mayfield Development). 11.9. Landscape Bonds and Agreement for Parcel Map 37130 ACTION Approved and accepted Landscape Bonds and Agreement associated with the commercial development of 8.69 acres of land for Parcel Map No. 37130, located on the southeast corner of McCall Boulevard and Sherman Road. Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 49 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 7 of 11 11.10. Resolution of Intention for Tentative Tract Map 36852 to Annex into CFD 2017-1, Annexation No. 5, Forestar Real Estate Group, Inc. ACTION 1. Accepted the Petition of Forestar Real Estate Group, Inc. to annex Tentative Tract Map (TTM) No. 36852 (Del Oro) into Community Facilities District No. 2017-1 (Maintenance Services) (“CFD No. 2017-1” or “CFD”) as Annexation Area No. 5; and 2. Adopted Resolution No. 20-984, amending the special tax rates for Annexation Area No. 5 into CFD No. 2017-1, of the City of Menifee to authorize the levy of special tax therein to finance certain maintenance services, and to set a public hearing for January 20, 2021. 11.11. Resolution of Intention for WellQuest Menifee, LLC, to Annex into CFD 2015-2 as Annexation No. 36 ACTION 1. Accepted the Petition of WellQuest Menifee, LLC to annex Plot Plan (PP) No. 17-042 into Community Facilities District No. 2015-2 (Maintenance Services) (“CFD No. 2015-2” or “CFD”) as Annexation Area No. 36; and 2. Adopted Resolution No. 20-985, adding Annexation Area No. 36 into CFD No. 2015-2, to authorize the levy of special tax therein to finance certain maintenance services, and to set a public hearing for January 20, 2021. 11.12. Offsite Geary Street Storm Drain Easement ACTION Approved and accepted Easement for the Offsite Geary Street Storm Drain associated with the development of Tract Map 36658, located on the west side of Geary Street and just north of McLaughlin Road, for Cimarron Ridge, LLC. 11.13 This item was moved to Items Pulled From Consent 11.14 This item was moved to Items Pulled From Consent 11.15. Notice of Completion for the Citywide Traffic Signal Interconnect (East) Project, CIP 16- 08 ACTION 1. Accepted the Improvements for the Citywide Traffic Signal Interconnect (East) Project,CIP 16-08; and 2. Authorized the City Clerk’s Office to file the Notice of Completion for Citywide Traffic Signal Interconnect (East) Project, CIP 16-08, with the Riverside County Recorder’s Office. ITEMS PULLED FROM CONSENT 11.13. Capital Improvement Program Time Extension Amendments to Existing Contract Agreements Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 50 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 8 of 11 Councilmember Liesemeyer inquired about the reason for the time extensions for Capital Improvement Project (CIP) No. 16-07, Traffic Signal Interconnect (west). City Manager Armando Villa introduced Principal Engineer Carlos Geronimo. Mr. Geronimo provided an update on the project. Mayor Pro Tem Sobek inquired about CIP No. 19-03, Antelope Road Raised Safety Median, project status. Mr. Geronimo provided an update on the federal funding for the project, timeline of the project, COVID-19 delays, notifying residents, and ability to be reimbursed to start the project. ACTION 1. Approved Amendment No. 2 with KOA Corporation, Professional Services Agreement for CIP 20-04 Paloma Wash Trail Improvements, extending the term of services through March 31, 2021; and 2. Approved Amendment No. 1 with Answer Advisory, LLC, Professional Services Agreement for CIP 16-07 Traffic Signal Interconnect (West), extending the term of services through March 31, 2021; and 3. Approved Amendment No. 1 with Infrastructure Engineering Corporation for CIP 20-06 and 20-07 Traffic Signals for Menifee Road and Holland Road and Menifee Road and Camino Cristal, extending the term of services through March 31, 2021; and 4. Approved Amendment No. 1 with STC Traffic, Inc. for CIP 19-03 Antelope Road Raised Safety Medians, extending the term of services through October 31, 2021. RESULT:Adopted [Unanimous] MOVER:Matt Liesemeyer SECONDER:Lesa Sobek AYES:Karwin, Zimmerman, Sobek, Liesemeyer, Deines 11.4. CARES Small Business Relief Grant, Round 4 Mayor Pro Tem Sobek requested a presentation. Economic Development Director Gina Gonzalez introduced Economic Development Analyst Kayla Charters to provide a presentation. Ms. Charters reported on the background of the CARES funding; the amount of funds allocated during rounds 1 through 3 and number of businesses awarded; Economic Development Department community efforts; new round of funding proposed; and staff recommendation. The City Council asked questions of staff regarding the ability for businesses to reapply; priority; business requirements to qualify; notification to businesses; allocation of available funds; and options for non-store front businesses. Mayor Pro Tem Sobek stated she would like to go out to the businesses to help support them and she asked for the Council's help. The City Council discussed their options to visit businesses within each of their districts. ACTION Approved Round 4 of the Menifee CARES Small Business Relief Grant, as part of the Menifee FORWARD initiative, in the amount of $150,000, utilizing the Menifee CARES funding allocation to assist the Menifee business community Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 51 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 9 of 11 during the COVID-19 pandemic with the latest stay at home order. RESULT:Adopted [Unanimous] MOVER:Lesa Sobek SECONDER:Matt Liesemeyer AYES:Karwin, Zimmerman, Sobek, Liesemeyer, Deines 11.14. TR Design Group, Inc. Agreement for Architectural Design Services of Fire Station No. 68 Interior Improvements, CIP 21-03 Mayor Pro Tem Sobek asked about the need for five bedrooms for Fire Station 68 in the City. Principal Engineer Carlos Geronimo reported on the new required standards for sleeping quarters and needed updates to the bathrooms for ADA compliance. ACTION 1. Approved a professional services agreement with TR Design Group, Inc., for architectural design services of Fire Station No. 68 Interior Improvements, CIP 21-03 for a not to exceed amount of $57,659.40; and 2. Authorized the City Manager to execute the agreement and any necessary contract amendments not exceeding 10% of the contract amount, or $5,766. RESULT:Adopted [Unanimous] MOVER:Lesa Sobek SECONDER:Matt Liesemeyer AYES:Karwin, Zimmerman, Sobek, Liesemeyer, Deines 12. PUBLIC HEARING ITEMS None 13. DISCUSSION ITEMS 13.1. Addition of 13 Full Time Employee Police Department Positions and Equipment City Manager Armando Villa introduced Menifee Police Chief Pat Walsh, Captain Karrer, Captain Gutierrez and Deputy City Manager Rochelle Clayton. Chief Walsh provided a presentation and reported on the current staffing. Captain Karrer reported on staffing compared to similar surrounding cities; police activity; calls for service; crime types; arrests; traffic collisions; Leica RTC360 scanner; and response times. Captain Gutierrez reports on investigations staffing; investigations workflow; Problem Oriented Policing (POP) and Code Enforcement; records workflow; and Post-Release Accountability Compliance Team (P.A.C.T.). Chief Walsh reported on requested operations staffing; investigations and support services staffing; vehicles; and growth of the Police Department. Deputy City Manager Rochelle Clayton reported on the budget impacts and sustainability and growth of police department 5-year projection. Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 52 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 10 of 11 Chief Walsh continued to report on the community expectations and Menifee culture. The City Council asked questions of staff regarding gang activity; number of patrol officers and hours; reason for increased traffic collisions; possible programs to help reduce traffic collisions; speed survey; man hours; incentives for new hires; traffic officers needed; public records request; and Drug Abuse Resistance Education (DARE) program. The City Council and staff discussed planning for the creation of an educational safety program for the City and steps that would need to be taken. Mayor Zimmerman stated that the City of Canyon Lake had approached Menifee about contracting for police services and to keep that in mind for future planning. ACTION 1. Authorized the addition of thirteen Full Time Employee (FTE) Police Department positions and purchase of the associated required equipment; and 2. Adopted Resolution No. 20-986, approving the budget amendment and appropriation of $1,250,821 in expenditures and $55,700 in revenue; and 3. Adopted Resolution No. 20-988, updating the authorized positions; and 4. Adopted Resolution No. 20-987, approving the assignment of one Police Officer to the Post-Release Accountability and Compliance Team (PACT) and authorize the City Manager, or designee, to enter into a Memorandum of Understanding with the County of Riverside, on behalf of its Probation Department and PACT for Public Safety Realignment; and 5. Approved the purchase and issuance of Purchase Order (PO) for Leica RTC360 Laser Scanner Kit and software license use of 3D Public Safety Software from Precision Survey Supply LLC in the total amount of $98,406.31 (Account #100-4911-53155 (Capital Outlays)); and 6. Exempt purchase from competitive bidding as product is proprietary and only sold by Precision Survey Supply LLC as allowed under the Menifee Municipal Code Section 3.12.070 (A)(1). RESULT:Adopted [Unanimous] MOVER:Lesa Sobek SECONDER:Bill Zimmerman AYES:Karwin, Zimmerman, Sobek, Liesemeyer, Deines 14. CITY ATTORNEY REPORTS None. 15. CITY MANAGER REPORTS City Manager Armando Villa introduced the City's new Risk Manager Robert Cardenas. Mr. Cardenas reported on COVID-19 as it relates to emergency management. The City Council asked questions of staff regarding the vaccine, small business assistance funds, total funds expended and budgeted, quarterly disbursement of CARES funds, and availability of the food program without CARES funds. Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 53 of 828 Menifee Mayor and City Council Regular Meeting Minutes Wednesday, December 16, 2020 Page 11 of 11 16. FUTURE AGENDA REQUESTS FROM COUNCIL MEMBERS Councilmember Liesemeyer requested a monthly update from the Community Services Department. Councilmember Karwin seconded the request. 17. CLOSED SESSION Mayor Zimmerman recessed to Closed Session at 9:43 p.m. for the purposes listed below. There were no public comments. 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Government Code Section 54956.8 Property: 337-230-012 Negotiators: City Manager Armando Villa, Assistant City Manager Jeff Wyman, Deputy City Manager Rochelle Clayton, and Economic Development Director Gina Gonzalez Negotiating party: City of Menifee and Sun City Investments Under negotiation: Price and terms of payment 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Government Code Paragraph (1) of subdivision (d) of Section 54956.9 City of Menifee v. All Persons Interested Riverside County Superior Court Case No. RIC 1722064 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Government Code Paragraph (1) of subdivision (d) of Section 54956.9 Pechanga Band of Luseno Indians and Soboba Band of Luseno Indians v. City of Menifee Riverside County Superior Court Case No. pending. Mayor Zimmerman reconvened the meeting at 11:23 p.m. City Attorney Jeffrey Melching stated there was no reportable action from Closed Session. 18. ADJOURN Mayor Zimmerman adjourned the meeting at 11:23 p.m. ________________________ Sarah A. Manwaring, MMC City Clerk Item Title:9.1 December 16,2020 City Council Minutes Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 54 of 828 CITY OF MENIFEE SUBJECT: Warrant Register MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Ann-Marie Etienne, Financial Services Manager REVIEWED BY: Wendy Preece, Deputy Finance Director APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION Ratify and approve the Voucher Lists dated 12/4/2020, 12/18/2020 and 12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020, 12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE 12/31/2020 which have a total budgetary impact of $7,158,573.01. DISCUSSION The City of Menifee Municipal Code Chapter 3.16.050 requires that the City Council audit payments of demands and directs the City Manager to issue checks. The attached Voucher List and all corresponding invoices have been reviewed and approved for accuracy by the Financial Services Manager and by the Deputy Finance Director. Voucher Lists dated 12/4/2020, 12/18/2020 and 12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020, 12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE 12/31/2020 have a total budgetary impact of $7,158,573.01. STRATEGIC PLAN OBJECTIVE Responsive and Transparent Community Government FISCAL IMPACT: As indicated above, Voucher Lists dated 12/4/2020, 12/18/2020 and 12/31/2020, the Payroll Register/Other EFT’s dated 12/2/2020, 12/4/2020, 12/10/2020, 12/11/2020, 12/23/2020, 12/24/2020, and the Void Check Listing PE 12/31/2020 have a total budgetary impact of $7,158,573.01, which is included in the fiscal year 2020-2021 Budget. Item Title:10.2 Warrant Register Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 55 of 828 City of Menifee Staff Report Warrant Register January 20, 2021 Page 2 of 2 2 3 8 ATTACHMENTS 1. Voucher Listing 12-04-2020 2. Voucher Listing 12-18-2020 3. Voucher Listing 12-31-2020 4. Voucher CC Details 12-31-2020 5. Payroll Register 1-20-2021 6. Accounts Payable Voice Check Listing December 2020 Item Title:10.2 Warrant Register Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 56 of 828 12/02/2020 Voucher List City of Menifee 1 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47226 12/4/2020 01889 ADLERHORST INTERNATIONAL LLC 105661 PD TRAINING SEMINAR 300.00 Total : 300.00 47227 12/4/2020 01252 AMAZON CAPITAL SERVICES, INC.11T1-KRKR-19GV COMM SVCS SUPPLIES 146.46 56.62CITY HALL MATERIALS & SUPPLIES13MF-NJHJ-PDLM 65.24PD MATERIALS & SUPPLIES1CGL-RWR1-QQVN 256.26PD MATERIALS & SUPPLIES1G77-4RXN-VP64 113.24CITY HALL MATERIALS & SUPPLIES1H6C-YGJP-YFV7 809.64CITY HALL MATERIALS & SUPPLIES1NMV-QXLC-KJK3 29.34FLEET MATERIALS & SUPPLIES1X1P-R74X-PL3N Total : 1,476.80 47228 12/4/2020 00123 AMBER MANAGEMENT, LLC DEC'20 DEC'20 CITY HALL MONTHLY RENT 37,227.42 28,555.04DEC'20 PD HEADQUARTERS MONTHLY RENTDEC'20 Total : 65,782.46 47229 12/4/2020 00258 AMERICAN FORENSIC NURSES, INC 73908 02554 DEC'20 MENIFEE PD FORENSIC SERVICES 300.00 Total : 300.00 47230 12/4/2020 01762 ANSER ADVISORY, LLC 1324 02299 SEPT'20 CIP 17-05 CONSTRUCTION ENG SVCS 1,732.96 Total : 1,732.96 47231 12/4/2020 01210 CORKY'S PEST CONTROL 2533447 LAZY CREEK PEST CONTROL SVCS 59.00 85.00WEST ANNEX PEST CONTROL SVCS2533971 Total : 144.00 47232 12/4/2020 00949 CR&R INCORPORATED 0002372 JUL'20 UNSCHEDULED STREET SWEEPING SERVI 35.00 02817 4,591.54OCT'20 STREET SWEEPING SERVICES0002454 Total : 4,626.54 47233 12/4/2020 00894 CROSSROADS SOFTWARE INC.7005 02746 CROSSROADS SOFTWARE 14,000.00 Total : 14,000.00 47234 12/4/2020 00881 D.R. BECHTER CONSULTING INC.14-002-325 02590 NOV'20 ON-CALL RECOVERABLE CONSTRUCTION 8,690.00 Total : 8,690.00 47235 12/4/2020 00841 DUDEK 202006396 02619 AUG'20 ON-CALL RECOVERABLE CONSTRUCTION 16,830.00 1Page: Item Title:10.2 Warrant Register Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 57 of 828 12/02/2020 Voucher List City of Menifee 2 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47235 12/4/2020 (Continued)00841 DUDEK 02619 12,870.00SEPT'20 ON-CALL RECOVERABLE CONSTRUCTION202007212 Total : 29,700.00 47236 12/4/2020 01959 ENRICHED ENERGY SOLUTION INC.2680 02721 EESI - CABLING FOR TMC PROJECT 8,025.00 Total : 8,025.00 47237 12/4/2020 01533 FASTSIGNS TEMECULA 581-98901 MENIFEE PD HEADQUARTERS SIGNS 96.97 157.39MENIFEE PD HEADQUARTERS SIGNS581-98905 Total : 254.36 47238 12/4/2020 01929 FORENSIC NURSES OF SOCAL, INC 1507 02749 MENIFEE PD: FORENSIC SERVICES 1,200.00 02749 300.00MENIFEE PD: FORENSIC SERVICES1513 02749 1,200.00MENIFEE PD: FORENSIC SERVICES1519 Total : 2,700.00 47239 12/4/2020 00805 GARY F. HOYT LANDSCAPE CP-2399 02605 GARY HOYT-JUL'20 ON-CALL LANDSCAPE DESIG 8,525.00 02620 8,415.00AUG'20 RECOVERABLE ENG SVCS LANDSCAPE PLCP-2400 02605 3,410.00GARY HOYT- AUG'20 LANDSCAPE DESIGN & INSCP-2401 Total : 20,350.00 47240 12/4/2020 01291 HELIXSTORM 10394 02763 FY20/21 IT PROFESSIONAL SUPPORT SERVICES 25,245.00 02448 18,875.00PALO ALTO TRAPS (CYBERSECURITY) FOR MENI10410 02763 25,225.00JUL'20 IT PROFESSIONAL SUPPORT SERVICES10431 02859 17,000.00CITY CYBER SECURITY SVCS10499 02763 24,217.50SEP'20 IT PROFESSIONAL SUPPORT SERVICES10530 02763 24,217.50OCT'20 IT PROFESSIONAL SUPPORT SERVICES10615 02858 870.00COVID-19: REMOTE SUPPORT10635 02858 870.00COVID-19: REMOTE SUPPORT10636 02858 870.00COVID-19: REMOTE SUPPORT10637 02858 870.00COVID-19: REMOTE SUPPORT10638 02763 2,100.00FY20/21 IT PROFESSIONAL SUPPORT SERVICES10659 02858 870.00COVID-19: REMOTE SUPPORT10698 02763 24,217.50NOV'20 IT PROFESSIONAL SUPPORT SERVICES10732 Total : 165,447.50 47241 12/4/2020 01200 INLAND ELECTRIC INC 5777 02551 CIP 19-18 PD HQ INSTALL AMP AUTOMATIC TR 33,337.21 2Page: Item Title:10.2 Warrant Register Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 58 of 828 12/02/2020 Voucher List City of Menifee 3 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 33,337.21 47241 12/4/2020 01200 01200 INLAND ELECTRIC INC 47242 12/4/2020 01437 JPW COMMUNICATIONS, LLC 1852 MARKETING FOR ECON DEV 1,246.20 Total : 1,246.20 47243 12/4/2020 01857 KC GRAPHICS 41654 R PRINTING SVCS FOR PD 170.73 202.82PRINTING SVCS FOR CODE41655 609.00PRINTING SVCS FOR PD41659 Total : 982.55 47244 12/4/2020 00840 KIMLEY-HORN AND ASSOCIATES, INC.17567086 02340 SEPT'20 PROF SVCS FOR CEQA REVIEW SVCS 782.50 Total : 782.50 47245 12/4/2020 00848 KOBATA ASSOCIATES, INC.03 02610 SEPT'20 ON-CALL LANDSCAPE DESIGN & INSPE 9,925.00 Total : 9,925.00 47246 12/4/2020 01878 LEHR S151112 02642 VIGILANT SOLUTIONS INVESTIGATIVE DATA SO 11,250.00 Total : 11,250.00 47247 12/4/2020 01871 LEXISNEXIS COPLOGIC, SOLUTIONS INC 807519-20201031 02648 LAW ENFORCEMENT AGREEMENT FOR MENIFEE PD 1,440.00 Total : 1,440.00 47248 12/4/2020 01450 LOCAL GOVERNMENT COMMISSION 104839 01622 ATP PROJECT & GRANT MANAGEMENT SVCS 1,176.25 Total : 1,176.25 47249 12/4/2020 01634 MEYERS RESEARCH LLC RC189-20C 02814 CITY OF MENIFEE INDUSTRIAL DEMAND ANALYS 5,978.68 Total : 5,978.68 47250 12/4/2020 01514 MULLIN360 LLC 16 02815 OCT-NOV'20 NET GROWTH DEMAND ANALYSIS 10,000.00 Total : 10,000.00 47251 12/4/2020 01761 P.L. PERRIN & ASSOCIATES 20-18 02270 PD POLYGRAPH SVCS 250.00 Total : 250.00 47252 12/4/2020 01160 PAYPRO ADMINISTRATORS PPC-159271 AUG'20 & OCT'20 COBRA INSURANCE 120.00 Total : 120.00 47253 12/4/2020 01457 RICK ENGINEERING 18395A(11)02110 SEPT'20 PROF SVCS FOR ENG DRAINAGE PLAN 86.25 3Page: Item Title:10.2 Warrant Register Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 59 of 828 12/02/2020 Voucher List City of Menifee 4 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47253 12/4/2020 (Continued)01457 RICK ENGINEERING 02739 14,307.50CIP 21-09 MURRIETA & SUN CITY BLVD TRAFF18395C(1) Total : 14,393.75 47254 12/4/2020 01798 ROY ALLAN SLURRY SEAL, INC 4257RETN RETENTION RELEASE 49,293.57 Total : 49,293.57 47255 12/4/2020 01869 RSM DESIGN 21143 02510 CITYWIDE SIGNAGE PROGRAM- PHASE I, II & 9,495.00 Total : 9,495.00 47256 12/4/2020 00962 RUTAN & TUCKER, LLP 875783 JUL'20 CITY LEGAL SVCS 22,234.00 8,746.50AUG'20 CITY LEGAL SVCS878225 3,712.50AUG'20 CITY LEGAL SVCS878240 2,116.00AUG'20 CITY LEGAL SVCS878241 693.57AUG'20 CITY LEGAL SVCS878244 15,123.50SEP'20 CITY LEGAL SVCS881044 736.00SEP'20 CITY LEGAL SVCS881050 748.12SEP'20 CITY LEGAL SVCS881052 205.00SEP'20 CITY LEGAL SVCS881053 69.34SEP'20 CITY LEGAL SVCS881054 11,394.50SEP'20 CITY LEGAL SVCS881056 29,959.93SEP'20 CITY LEGAL SVCS881061 Total : 95,738.96 47257 12/4/2020 00596 SATCOM DIRECT COMMUNICATIONS 7399525 OCT'20 EMERGENCY SATELLITE PHONE SVC 54.25 54.25OCT'20 EMERGENCY SATELLITE PHONE SVC7399526 54.25OCT'20 EMERGENCY SATELLITE PHONE SVC7399527 54.25OCT'20 EMERGENCY SATELLITE PHONE SVC7399528 54.25OCT'20 EMERGENCY SATELLITE PHONE SVC7399529 Total : 271.25 47258 12/4/2020 01318 SEARLE CREATIVE GROUP LLC 20327-PD MARKETING FOR MENIFEE PD DEPT 639.98 02813 9,050.00FY20/21 MEASURE DD OUTREACH SUPPORT SERV20375-DD 02813 1,400.00FY20/21 MEASURE DD OUTREACH SUPPORT SERV20409-DD 02472 1,644.40FY20/21 ON-CALL OUTREACH SUPPORT SERVICE20411-COVID 02662 1,575.00FY 2020/21 ON-CALL MARKETING SERVICES20413-ED Total : 14,309.38 4Page: Item Title:10.2 Warrant Register Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 60 of 828 12/02/2020 Voucher List City of Menifee 5 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47259 12/4/2020 00484 SELECT STAFFING 8405947433 TEMP EMP SVCS PE 10/25/20 4,762.28 4,746.23TEMP EMP SVCS PE 11/01/208405968319 Total : 9,508.51 47260 12/4/2020 01845 SPEAKWRITE LLC 66120318 02569 MENIFEE PD AS NEEDED DICTATION SERVICES 1,310.61 Total : 1,310.61 47261 12/4/2020 01695 SUSAN SAXE-CLIFFORD 20-1110-1 02289 MENIFEE PD PSYCHOLOGICAL EVALUATION SVCS 425.00 Total : 425.00 47262 12/4/2020 01895 THE COUNSELING TEAM, INTERNATIONAL 10109 CRISIS INTERVENTION AND BEHAVIORAL TRAIN 1,000.00 02824 1,000.00MENIFEE PD: BEHAVIORAL HEALTH AND WELLNE77663 Total : 2,000.00 47263 12/4/2020 01448 VILLAGE NEWS, INC 40767 02862 ADVERTISING/COMMUNICATION INFO COVID-19 2,620.00 850.00CARES GRANT AD41906 Total : 3,470.00 47264 12/4/2020 00864 VIZION'S WEST, INC.20-1070 PROPERTY ABATEMENT SVCS 401.00 401.00PROPERTY ABATEMENT SVCS20-1071 Total : 802.00 47265 12/4/2020 00504 WALLACE & ASSOCIATES 20-01MENIFEE-16-13 02791 SEP'20 CIP 16-13 PUBLIC WORKS LABOR COMP 329.50 02826 63.50SEP'20 CIP 21-01 MURRIETA RD RESURFACING20-01MENIFEE-21-01 02852 460.00JUL'20 CIP 20-03 GOETZ RD OVERLAY PROJEC20-05MENIFEE-20-03 02852 640.00AUG'20 CIP 20-03 GOETZ RD PROJECT LABOR20-06MENIFEE-20-03 02851 970.00JUL'20 CIP 20-10 ANDALUSIA & BELCANTO OV20-06MENIFEE-20-10 02852 580.00SEP'20 CIP 20-03 GOETZ RD PROJECT LABOR20-07MENIFEE-20-03 02851 590.00AUG'20 CIP 20-10 ANDALUSIA & BELCANTO OV20-07MENIFEE-20-10 Total : 3,633.00 47266 12/4/2020 01198 WHITE HOUSE SANITATION 0000822649 NOV'20 LAZY CREEK PORTABLE RESTROOM SVCS 183.42 146.61NOV'20 LYLE MARSH PORTABLE RESTROOM SVCS0000822650 Total : 330.03 47267 12/4/2020 01044 ADAM HALL'S NURSERY, INC.009617 02820 PLANTS FOR CALLE TOMAS & NOVA TRAIL 2,965.82 Total : 2,965.82 5Page: Item Title:10.2 Warrant Register Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 61 of 828 12/02/2020 Voucher List City of Menifee 6 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47268 12/4/2020 00555 ADAME LANDSCAPING, INC.85776 02751 MOW CURB TRAIL ENHANCEMENTS CS023 10,300.00 02779 2,295.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI85934 02779 240.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI85935 02779 235.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI85936 02779 704.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI85937 02779 941.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI85938 02779 558.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI85939 02779 297.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI85940 02779 505.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI85941 02779 98.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI86131 02779 622.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI86132 Total : 16,795.00 47269 12/4/2020 00744 ALLIED TRAFFIC & EQUIP. RENTAL 81672 P/W SIGN MAINT & REPLACEMENT 353.44 348.00P/W SIGN MAINT & REPLACEMENT81723 Total : 701.44 47270 12/4/2020 00570 AMERICAN LEGAL PUBLISHING CORP 3567 MENIFEE CA CODE OF ORDINANCES 1,298.68 Total : 1,298.68 47271 12/4/2020 00365 AMERICAN PLANNING ASSOC.249223-20104 APA MEMBERSHIP RENEWAL 461.00 Total : 461.00 47272 12/4/2020 00058 AMERICAN REPROGRAPHICS CO. LLC 10738418 PRINTING SVCS 159.36 151.98PRINTING SVCS10738419 Total : 311.34 47273 12/4/2020 01646 ARROYO BACKGROUND, INVESTIGATIONS 2353 PRO SVC AGREEMENT FOR BACKGROUND INVESTI 500.00 Total : 500.00 47274 12/4/2020 00259 BIO-TOX LABORATORIES INC 40356 02641 OCT'20 PD BLOOD ALCOHOL ANALYSIS 476.00 Total : 476.00 47275 12/4/2020 00171 CALBO 13359 CALBO MEMBERSHIP DUES 295.00 02863 3,565.002020 CALBO VIRTUAL CONFERENCE13360 Total : 3,860.00 47276 12/4/2020 01818 CALLYO A13718 02544 FY20/21 MOBILE INVESTIGATIVE SOFTWARE AN 1,566.00 6Page: Item Title:10.2 Warrant Register Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 62 of 828 12/02/2020 Voucher List City of Menifee 7 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 1,566.00 47276 12/4/2020 01818 01818 CALLYO 47277 12/4/2020 01511 CANON FINANCIAL SERVICES, INC 22145702 02571 NOV'20 SCANNER LEASE SERVICES 354.78 02570 7,167.02NOV'20 COPIER LEASE SERVICES22145703 02571 388.99NOV'20 PRINTER LEASE SERVICES22145704 02570 150.25NOV'20 COPIER LEASE SERVICES22145705 02570 2,277.33OCT'20 COPIER LEASE SERVICES22145706 Total : 10,338.37 47278 12/4/2020 02027 CARRINO, CHRISTOPHER CK REQ 11/24 PER DIEM FOR WEAPON TRAINING 89.00 Total : 89.00 47279 12/4/2020 01725 CITY OF MURRIETA 2020-03 BASIC POLICE MOTORCYLE TRAINING 1,000.00 Total : 1,000.00 47280 12/4/2020 01550 COSTAR REALTY INFORMATION, INC 112701261-1 02825 COSTAR REALTY INFORMATION SUBSCRIPTION 4,259.74 Total : 4,259.74 47281 12/4/2020 02017 COUNTY OF ORANGE, SHERIFF CORONER 10.27.20 MENIFEE PD TRAINING 224.40 Total : 224.40 47282 12/4/2020 02028 COX, COREY CK REQ 11/24 PER DIEM FOR WEAPON TRAINING 89.00 Total : 89.00 47283 12/4/2020 01052 CRIME SCENE STERI-CLEAN LLC 41348 PD CRIME SCENE CLEAN UP SVCS 750.00 Total : 750.00 47284 12/4/2020 00161 EASTERN MUNICIPAL WATER DIST.152572-03 11/4 OCT'20 LLMD ZONE 3 WATER SVCS 2,127.43 1,821.99OCT'20 LLMD ZONE 3 WATER SVCS173168-03 11/4 879.50OCT'20 LLMD ZONE 3 WATER SVCS181069-03 11/4 1,800.81OCT'20 CSA 145 WATER SVCS181979-03 11/4 386.59OCT'20 LLMD ZONE 38 WATER SVCS197480-04 11/4 260.76OCT'20 LLMD ZONE38 WATER SVCS197481-04 11/4 481.26OCT'20 LLMD ZONE 38 WATER SVCS197482-04 11/4 382.51OCT'20 LLMD ZONE 38 WATER SVCS197483-04 11/4 301.97OCT'20 LLMD ZONE 38 WATER SVCS197486-04 11/4 1,475.07OCT'20 CSA 145 WATER SVCS204615-02 11/4 1,808.21OCT'20 CSA 145 WATER SVCS204616-02 11/4 7Page: Item Title:10.2 Warrant Register Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 63 of 828 12/02/2020 Voucher List City of Menifee 8 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47284 12/4/2020 (Continued)00161 EASTERN MUNICIPAL WATER DIST. 1,175.31OCT'20 LLMD ZONE 37 WATER SVCS209502-03 11/4 1,796.30OCT'20 LLMD ZONE 3 WATER SVCS210877-03 11/4 458.81OCT'20 LLMD ZONE 47 WATER SVCS214104-03 11/4 2,952.54OCT'20 LLMD ZONE 3 WATER SVCS217316-03 11/5 331.69OCT'20 LLMD ZONE 3 WATER SVCS217318-03 11/5 1,194.83OCT'20 LLMD ZONE 3 WATER SVCS218620-03 11/5 2,303.18OCT'20 LLMD ZONE 69 WATER SVCS225995-03 11/5 1,236.61OCT'20 LLMD ZONE 69 WATER SVCS225996-03 11/5 503.82OCT'20 CSA 145 ROW WATER SVCS229625-03 11/5 1,372.79OCT'20 LLMD ZONE 81 WATER SVCS233542-03 11/5 526.84OCT'20 NEWPORT/HAUN STREET MEDIAN WATER234911-01 11/4 788.21OCT'20 FIRE STATION #7 WATER SVCS241469-01 11/4 1,832.03OCT'20 CSA 145 WATER SVCS35123-04 11/4 390.24OCT'20 CHERRY HILLS BLVD STREET MEDIAN W4065-02 11/4 332.14OCT'20 LLMD ZONE 3 WATER SVCS71416-03 11/4 320.28OCT'20 WATER SVC SENIOR CENTER81456-03 11/4 299.74OCT'20 LLMD ZONE 3 WATER SVCS83877-03 11/4 352.55OCT'20 LLMD ZONE 3 WATER SVCS85623-04 11/4 540.62OCT'20 LLMD ZONE 3 WATER SVCS92817-02 11/4 368.45OCT'20 LLMD ZONE 3 WATER SVCS94084-03 11/5 280.22OCT'20 LLMD ZONE 3 WATER SVCS94440-03 11/4 252.13OCT'20 LLMD ZONE 3 WATER SVCS95841-03 11/4 4,044.90OCT'20 CSA 145 WATER SVCS95843-03 11/5 502.50OCT'20 LLMD ZONE 3 WATER SVCS96356-03 11/5 272.83OCT'20 LLMD ZONE 3 WATER SVCS99479-03 11/5 Total : 36,155.66 47285 12/4/2020 00161 EASTERN MUNICIPAL WATER DIST.101279-03 11/4 OCT'20 LLMD ZONE WATER SVCS 55.02 218.65OCT'20 LLMD ZONE 3 WATER SVC149228-03 11/4 24.96OCT'20 LLMD ZONE 3 WATER SVCS152855-03 11/5 74.86OCT'20 LLMD ZONE 3 WATER SVCS155944-03 11/5 24.09OCT'20 CSA 145 WATER SVCS169064-03 11/4 164.82OCT'20 LLMD ZONE 3 WATER SVCS181980-03 11/4 73.16OCT'20 CSA 145 WATER SVCS204614-02 11/4 127.04OCT'20 LLMD ZONE 3 WATER SVCS217419-03 11/4 139.91OCT'20 POLICE HQ WATER SVCS231917-03 11/5 8Page: Item Title:10.2 Warrant Register Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 64 of 828 12/02/2020 Voucher List City of Menifee 9 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47285 12/4/2020 (Continued)00161 EASTERN MUNICIPAL WATER DIST. 189.91OCT'20 AMR SPORTS PARK WATER SVCS236607-02 11/5 105.33OCT'20 HIDDEN HILLS PARK RESTROOM WATER247007-02 11/5 57.39OCT'20 CENTRAL PARK WATER SVCS250203-02 11/5 61.42OCT'20 CENTENNIAL PARK WATER SVCS250719-02 11/5 89.53OCT'20 CFD 2015-02 ANNEXATION 34 ZONE 34250899-02 11/5 136.20OCT'20 LLMD ZONE 3 WATER SVCS71417-03 11/4 58.39OCT'20 FIRE STATION #68 WATER SVCS73422-02 11/5 42.56OCT'20 WATER SVC ANNEX BLDG81822-03 11/4 121.37OCT'20 CSA 145 WATER SVCS94633-02 11/5 112.40OCT'20 LLMD ZONE 3 WATER SVCS95842-02 11/4 Total : 1,877.01 47286 12/4/2020 01928 EFAX CORPORATE 3054068 OCT'20 PD VIRUTAL FAX LINES FOR TRAINING 129.50 Total : 129.50 47287 12/4/2020 00024 FEDEX 7-120-82412 SEP'20 EXPRESS DELIVERY SVCS 163.76 Total : 163.76 47288 12/4/2020 01142 FRONTIER CALIFORNIA INC.213-168-6081 10/16 OCT'20 WEST ANNEX FIOS SVC 290.98 300.98OCT'20 SPIRIT PARK FIOS310-010-9929 10/19 64.97JUL'20 MENIFEE PD FIOS SVCS951-679-5344 10/28 300.82OCT'20 MENIFEE PD VOLUNTEER PHONE SVCS951-679-7031 11/1 374.65NOV'20 MENIFEE PD VOLUNTEER PHONE SVCS951-679-7031 11/1 111.64NOV'20 LAZY CREEK ALARM SVCS951-679-8153 11/4 67.46NOV'20 SENIOR CENTER FIRE ALARM951-679-8460 10/28 Total : 1,511.50 47289 12/4/2020 00278 GALLS, LLC 016373334 FIELD STAFF BOOTS -182.70 401.18PARK RANGER UNIFORMSBC1228472 Total : 218.48 47290 12/4/2020 00139 GHA TECHNOLOGIES INC 101072243 ID BADGE RESTOCK 1,000.50 1,002.41HEADSETS FOR ESSENTIAL STAFF DURING COVI101081072 02728 4,136.00NETMOTION V12 - LICENSE UPGRADES101086588 02822 96,675.56COVID-19 MICROSOFT LAPTOPS PHASE II101087038 02822 9Page: Item Title:10.2 Warrant Register Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 65 of 828 12/02/2020 Voucher List City of Menifee 10 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 102,814.47 47290 12/4/2020 00139 00139 GHA TECHNOLOGIES INC 47291 12/4/2020 00908 GOSCH AUTO GROUP 2066132 BLDG/SFTY VEHICLE MAINTENANCE (VEH#106) 218.71 440.88PD VEHICLE MAINTENANCE (VEH#20-32)5017314 80.04PD VEHICLE MAINTENANCE (VEH#20-20)5017899 Total : 739.63 47292 12/4/2020 00921 HD SUPPLY CONSTRUCTION SUPPLY 50014492092 COMM SVCS FACILITY MAINTENANCE 77.45 Total : 77.45 47293 12/4/2020 00548 IMPACT PROMOTIONAL PRODUCTS 28037 CITY MANAGER EMPLOYEE SHIRTS 352.22 266.29CITY MANAGER EMPLOYEE SHIRTS28038 Total : 618.51 47294 12/4/2020 01043 IMPERIAL SPRINKLER SUPPLY 4332866-02 CFD IRRIGATION SUPPLIES 176.43 204.55IRRIGATION SUPPLIES FOR TRAIL ENHANCEMEN4354419-00 38.99AMR PARK IRRIGATION SUPPLIES4391015-00 64.77IRRIGATION SUPPLIES FOR TRAIL ENHANCEMEN4413818-00 171.94AMR PARK IRRIGATION SUPPLIES4420862-00 153.98P/W YARD FACILITY MAINTENANCE4426617-00 Total : 810.66 47295 12/4/2020 00225 INT'L CITY MGMT ASSOC CK REQ 11/23 ICMA MEMBERSHIP 150.00 Total : 150.00 47296 12/4/2020 01980 KOGA INSTITUTE, DIV OF KOGA FOUNDATION 000200 02800 MENIFEE PD SMALL TOOLS & FIELD EQUIPMENT 2,758.40 Total : 2,758.40 47297 12/4/2020 01743 L.N. CURTIS & SONS INV404594 MENIFEE PD SMALL TOOLS & FIELD EQUIPMENT 92.55 02355 4,132.50MENIFEE PD GAS MASKS FIRST RESPONDER KITINV425442 Total : 4,225.05 47298 12/4/2020 01852 LANGUAGE LINE SERVICES, INC 4884677 02575 AUG'20 COMPREHENSIVE INTERPRETATION SERV 129.62 02575 82.31SEP'20 COMPREHENSIVE INTERPRETATION SERV4898684 02575 235.41OCT'20 COMPREHENSIVE INTERPRETATION4911756 Total : 447.34 47299 12/4/2020 00128 LOWES 6081 11/02 SUPPLIES 1,266.80 10Page: Item Title:10.2 Warrant Register Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 66 of 828 12/02/2020 Voucher List City of Menifee 11 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 1,266.80 47299 12/4/2020 00128 00128 LOWES 47300 12/4/2020 01563 MERCHANTS BUILDING MAINTENANCE 602984 02665 NOV'20 JANITORIAL SERVICES 8,412.35 Total : 8,412.35 47301 12/4/2020 00474 BUSHFIRE BEACHSIDE, INC CK REQ 11/24 BUSINESS INCENTIVE PROGRAM (BUSHFIRE) 4,595.50 Total : 4,595.50 47302 12/4/2020 00474 SUBMARINA CK REQ 11/24 MEALS FOR SENIOR LUNCH PROGRAM 980.00 Total : 980.00 47303 12/4/2020 00474 SUBWAY CK REQ 11/24 MEALS FOR SENIOR LUNCH PROGRAM 840.00 Total : 840.00 47304 12/4/2020 00474 PITSTOP PUB SPORTS BAR & GRILL CK REQ 11/24 MEALS FOR SENIOR LUNCH PROGRAM 837.38 Total : 837.38 47305 12/4/2020 00474 INTEGRITY CABLING SYSTEMS, INC CK REQ 11/10 REFUND FIRE PERMIT PMT17-02118FA 673.00 Total : 673.00 47306 12/4/2020 00474 QUALITY CUSTOM POOLS INC CK REQ 11/13 REFUND BLDG PERMIT PMT19-04784 397.88 Total : 397.88 47307 12/4/2020 00690 MMASC 2158 MMASC MEMBERSHIP DUES 90.00 75.00MMASC CONFERENCE REGISTRATION2670 Total : 165.00 47308 12/4/2020 01605 MOBILE MODULAR MANAGEMENT CORP 30339999 MOBILE MODULAR RENTAL 102.44 Total : 102.44 47309 12/4/2020 00857 MOTOPORT USA 149068 02406 MENIFEE PD UNIFORMS 4,155.53 Total : 4,155.53 47310 12/4/2020 02015 NATIONAL TRAINING CONCEPTS INC 20-132 MENIFEE PD TACTICAL TRAINING 1,370.00 Total : 1,370.00 47311 12/4/2020 01558 OCCUPATION HEALTH CENTERS, OF CALIFORNIA69350425 PRE-EMPLOYMENT TESTING SVCS 1,358.00 Total : 1,358.00 11Page: Item Title:10.2 Warrant Register Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 67 of 828 12/02/2020 Voucher List City of Menifee 12 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47312 12/4/2020 01130 O'REILLY AUTO PARTS 4746-155573 PD FLEET VEHICLE MAINT. 26.70 350.14PD VEHICLE MAINTENANCE (VEH#20-20)4746-157623 443.93PD VEHICLE MAINTENANCE4746-157630 Total : 820.77 47313 12/4/2020 01674 PACIFIC ALARM SERVICE R-00243685 02761 DEC'20 FIRE & BURGLAR ALARM MONITORING S 1,676.16 02760 438.88DEC'20 PD HQ CCTV SSYTEM MAINTENANCE SVCR-002438685-1 02761 110.00DEC'20 FIRE & BURGLAR ALARM MONITORING SR-00245521 Total : 2,225.04 47314 12/4/2020 01096 PAPER RECYCLING & SHREDDING, SPECIALISTS INC.472550 COMM SVCS DOC SHREDDING SVCS 63.00 55.00POLICE DOC SHREDDING SVCS472551 95.00POLICE DOC SHREDDING SVCS472552 Total : 213.00 47315 12/4/2020 01843 PARKHOUSE TIRE, INC 2010705620 POOL CAR VEHICLE TIRES 120.00 260.54PD VEHICLE TIRES2010706321 41.12FLEET MATERIALS & SUPPLIES2010708175 430.41CITY MANAGER POOL VEHICLE TIRES2010710992 260.54PD VEHICLE TIRES2010711834 260.54PD VEHICLE TIRES2010711836 Total : 1,373.15 47316 12/4/2020 01065 PRUDENTIAL OVERALL SUPPLY 23068228 COMM SVCS UNIFORM LAUNDRY SVCS 45.00 45.00COMM SVCS UNIFORM LAUNDRY SVCS23070947 56.86COMM SVCS UNIFORM LAUNDRY SVCS23074162 130.02P/W UNIFORM LAUNDRY SVCS23074183 43.27P/W LAUNDRY SVCS23074185 125.55P/W UNIFORM LAUNDRY SVCS23077548 43.27P/W LAUNDRY SVCS23077549 Total : 488.97 47317 12/4/2020 01717 QUINN COMPANY PCA20018549 P/W MATERIALS & SUPPLIES 33.10 Total : 33.10 47318 12/4/2020 01491 RINCON CONSULTANTS, INC 23970 02644 RINCON - JUL'20 ON-CALL PLANNING & ENVIR 14,617.50 02644 16,457.50AUG'20 PLANNING & ENVIRONMENTAL RVW SVCS24462 12Page: Item Title:10.2 Warrant Register Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 68 of 828 12/02/2020 Voucher List City of Menifee 13 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47318 12/4/2020 (Continued)01491 RINCON CONSULTANTS, INC 02208 4,182.25AUG'20 PROF SVCS FOR TECHNICAL STUDIES24463 02208 5,299.00RINCON-SEPT'20 PROF SVCS FOR TECHNICAL S25276 02644 9,477.50RINCON-SEPT'20 PLANNING & ENVIRONMENTAL25277 Total : 50,033.75 47319 12/4/2020 00530 RIVERSIDE COUNTY CLERK CK REQ 12/1 NOE FILING FEE 50.00 Total : 50.00 47320 12/4/2020 01453 SIGNS BY TOMORROW 25739 02659 FY 20/21 PUBLIC HEARING NOTICE SIGNAGE S 960.75 02659 720.56FY 20/21 PUBLIC HEARING NOTICE SIGNAGE S25838 Total : 1,681.31 47321 12/4/2020 01874 SIRCHIE 0467744-IN PD MATERIALS & SUPPLIES 9.46 Total : 9.46 47322 12/4/2020 01640 SO CAL SHORT LOAD INC 001071 P/W MATERIALS & SUPPLIES 740.00 410.00P/W MATERIALS & SUPPLIES03130 380.00P/W MATERIALS & SUPPLIES03135 440.00P/W MATERIALS & SUPPLIES3120 470.00P/W MATERIALS & SUPPLIES3170 Total : 2,440.00 47323 12/4/2020 00046 SOUTHERN CALIFORNIA EDISON 2-32-648-0936 11/10 OCT'20 NEWPORT RD SGNL & STREETLIGHT SVC 297.11 35.93OCT'20 COMM SHACK DAILY RD ELECTRIC SVC2-33-575-9569 11/12 131.53OCT'20 BRIGGS RD SGNL SVC2-35-870-8709 11/10 406.11OCT'20 CFD 2017-1 STREET LIGHT & IRRIGAT2-36-156-2671 11/14 286.19OCT'20 CITY SIGNAL SVCS2-36-738-8345 11/10 570.03OCT'20 LLMD IRRIGATION SVCS2-37-492-0809 11/10 23.50OCT'20 LLMD ZONE 167 SAFETY LIGHTS SVCS2-40-993-9071 11/12 12.94OCT'20 LLMD ZONE 167 IRRIGATION SVCS2-40-993-9311 11/12 51.82OCT'20 LLMD ZONE 167 SIGNAL SVCS2-40-994-7645 11/10 68.39OCT'20 CFD 2017-1 TOWN CENTER TRAFFIC SI2-41-608-8631 11/12 44.24SEPT'20 CFD 2017-1 TOWN CENTER TRAFFIC S2-41-608-8649 10/13 45.01OCT'20 CFD 2017-1 TOWN CENTER TRAFFIC SI2-41-608-8649 11/12 70.15OCT'20 CFD 2017-1 TOWN CENTER TRAFFIC SI2-41-608-8664 11/12 12.38OCT'20 CFD 2017-1 TOWN CENTER IRRIGATION2-41-608-8672 11/12 13Page: Item Title:10.2 Warrant Register Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 69 of 828 12/02/2020 Voucher List City of Menifee 14 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47323 12/4/2020 (Continued)00046 SOUTHERN CALIFORNIA EDISON 875.88OCT'20 POLICE HQ ELECTRICAL SVCS2-41-909-0907 11/13 12.24SEPT'20 CFD 2015-2 ANNEX 18 STREET LIGHT2-42-985-8632 11/7 19.57OCT'20 CFD 2015-2 ANEEX 18 STREET LIGHT2-42-985-8632 11/7 Total : 2,963.02 47324 12/4/2020 00045 STAPLES 6041 10/15 PRINTING SVCS FOR PD 50.13 Total : 50.13 47325 12/4/2020 00283 STATE OF CALIFORNIA, DEPARTMENT OF JUSTICE479707 OCT'20 NEW HIRE SCREENING 541.00 315.00OCT'20 BLOOD ALCOHOL ANALYSIS480729 Total : 856.00 47326 12/4/2020 00697 STATER BROS. MARKET CO285 11/3 FLEET MATERIALS & SUPPLIES 2.18 Total : 2.18 47327 12/4/2020 01010 STC TRAFFIC, INC.4332 02153 SEPT'20 PROF SVCS FOR CIP 16-08 TRAFFIC 1,337.68 02387 3,360.93SEPT'20 CIP 16-07 TRAFFIC SIGNAL ENGINEE4333 02305 4,321.80SEPT'20 CIP 19-03 ANTELOPE RD ENGINEERIN4334 02738 3,759.50CIP 21-07 MENIFEE/ LA PIEDRA RD TRAFFIC4335 02737 3,480.50SEP'20 CIP 21-10 MURRIETA/ROUSE RD TRAFF4336 02634 6,208.50SEPT'20 GRANT MANAGEMENT SVCS4337 Total : 22,468.91 47328 12/4/2020 01053 SUN CITY HARDWARE 6726777 11/02 COMM SVCS & P/W SUPPLIES 1,297.00 Total : 1,297.00 47329 12/4/2020 01191 THE LEW EDWARDS GROUP 20-08 02725 OCT'20 PROF SVC AGT FOR COMMUNITY ASSESS 6,000.00 Total : 6,000.00 47330 12/4/2020 00854 THE LLOYD PEST CONTROL CO, INC 7244624 NOV'20 CITY HALL PEST CONTROL SVCS 75.00 Total : 75.00 47331 12/4/2020 01585 THOMSON REUTERS- WEST 842922486 02543 AUG'20 PD PUBLIC RECORDS INFORMATION 658.40 02543 658.40SEPT'20 PD PUBLIC RECORDS INFORMATION SV843087479 Total : 1,316.80 47332 12/4/2020 01492 TONKIN PLUMBING INC 46504 FIRESTATION #68 FACILITY MAINTENANCE 315.00 14Page: Item Title:10.2 Warrant Register Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 70 of 828 12/02/2020 Voucher List City of Menifee 15 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 315.00 47332 12/4/2020 01492 01492 TONKIN PLUMBING INC 47333 12/4/2020 00661 TOTAL COMPENSATION SYSTEMS, IN 8702 02812 GASB75 VALUATION SVCS 2ND INSTALLMENT 1,600.00 Total : 1,600.00 47334 12/4/2020 00714 TPX COMMUNICATIONS 135004960-0 OCT'20 LOCAL & LONG DISTANCE SVCS 747.25 Total : 747.25 47335 12/4/2020 01064 TRI STATE MATERIALS INC 92983 IRRIGATION SUPPLIES FOR TRAIL ENHANCEMEN 30.17 359.13IRRIGATION SUPPLIES FOR TRAIL ENHANCEMEN93069 Total : 389.30 47336 12/4/2020 01315 ULINE, INC 126489569 IT WORKROOM SUPPLIES 315.04 Total : 315.04 47337 12/4/2020 02006 UNIFORM SPECIALIST 105432 MENIFEE PD UNIFORMS 209.66 203.16MENIFEE PD UNIFORMS105433 Total : 412.82 47338 12/4/2020 00189 VERIZON WIRELESS 9866054116 CITY MOBILE DEVICE CHARGES OCT'20 4,770.45 Total : 4,770.45 47339 12/4/2020 01425 VIDEO APPROACH 2020-00064 02471 MENIFEE DAILY COVID-19 UPDATES 2,500.00 Total : 2,500.00 47340 12/4/2020 00787 WAGEWORKS, INC.INV2408426 OCT'20 FSA MONTHLY PREMIUM 603.00 Total : 603.00 47341 12/4/2020 00270 WEST COAST LIGHTS & SIRENS INC 20672 02424 RETROFIT UNDERCOVER VEHICLE 4,703.94 02424 1,017.73RETROFIT UNDERCOVER VEHICLE20673 Total : 5,721.67 47342 12/4/2020 01803 WEST TOW 20-66919 PD VEHICLE TOWING SVCS 45.00 Total : 45.00 47343 12/4/2020 01917 ZIMMERMAN GROUP, INC 16443 02668 OCT'20 ON-CALL PUBLIC FINANCE SERVICES 1,416.00 15Page: Item Title:10.2 Warrant Register Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 71 of 828 12/02/2020 Voucher List City of Menifee 16 4:41:50PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 1,416.00 47343 12/4/2020 01917 01917 ZIMMERMAN GROUP, INC Bank total : 941,769.28 118 Vouchers for bank code :uboc 941,769.28Total vouchers :Vouchers in this report 118 16Page: Item Title:10.2 Warrant Register Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 72 of 828 12/16/2020 Voucher List City of Menifee 1 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47344 12/15/2020 00530 RIVERSIDE COUNTY CLERK CK REQ 12/15 NOD FILING FEE 50.00 Total : 50.00 47345 12/18/2020 00748 4IMPRINT, INC.20472870 LAPTOP CASES FOR REMOTE WORK FORCE 1,921.07 02872 2,451.88EMPLOYEE APPRECIATION GIVEAWAYS8623345 Total : 4,372.95 47346 12/18/2020 01252 AMAZON CAPITAL SERVICES, INC.13DT-XYVT-GGK4 P/W ADMIN MATERIALS & SUPPLIES 42.96 35.88COMM SVCS COVID-19 SUPPLIES13V9-1RGF-966H 216.41P/W ADMIN MATERIALS & SUPPLIES17M6-7NF6-LWR9 36.43OFFICE SUPPLIES17YK-VP1X-M1F9 120.69P/W MATERIALS & SUPPLIES1CVL-Y1GF-PL3J 158.88OFFICE SUPPLIES1KQQ-1X7P-RDXQ 21.60OFFICE SUPPLIES1L4L-R7RX-DCV3 59.79FLEET SMALL TOOLS & FIELD EQUIPMENT1QJY-YK3P-TWKP 110.88SUPPLIES FOR ECON DEV1QQ9-LYQF-WHJN 44.53P/W EQUIPMENT MANITENANCE1RQG-F7T3-RFQM 49.41COMM SVCS SUPPLIES1TFX-J1WN-3M6G 10.43SWEET TEAM GIVEAWAY1VW4-MXJQ-R3QK 137.26COMM SVCS SUPPLIES1VWL-RKH6-TF1W 16.48P/W ADMIN MATERIALS & SUPPLIES1WQF-CD99-4CRY 119.57COVID-19 SUPPLIES1YTF-DLLV-DFPQ Total : 1,181.20 47347 12/18/2020 00258 AMERICAN FORENSIC NURSES, INC 73976 02554 OCT'20 MENIFEE PD FORENSIC SERVICES 275.00 Total : 275.00 47348 12/18/2020 01898 AMERICAN RAMP COMPANY 26139 02731 CITYWIDE PARK IMPROVEMENTS 1,875.00 02855 7,500.00CONCEPTUAL DESIGN SERVICES26164 Total : 9,375.00 47349 12/18/2020 00507 ANIMAL FRIENDS OF THE VALLEY SEP 2020 02601 SEP'20 ANIMAL FIELD SERVICES 27,670.17 02602 18,750.00SEP'20 ANIMAL FIELD SERVICESSEPT 2020-1 Total : 46,420.17 47350 12/18/2020 01762 ANSER ADVISORY, LLC 1325 02382 SEP'20 CIP 16-07 CITYWIDE TRAFFIC SIGNA 21,533.34 1Page: Item Title:10.2 Warrant Register Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 73 of 828 12/16/2020 Voucher List City of Menifee 2 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 21,533.34 47350 12/18/2020 01762 01762 ANSER ADVISORY, LLC 47351 12/18/2020 01607 ARCHITERRA DESIGN GROUP 27650 02603 ARCHITERRA - OCT'20 LANDSCAPE DESIGN & I 312.50 02603 1,375.00ARCHITERRA - NOV'20 LANDSCAPE DESIGN AND27757 Total : 1,687.50 47352 12/18/2020 01849 BILLINGPARADISE 24X7, INC.06SALC910 OCT'20 CLOSED CAPTIONING SERVICE FOR MEE 941.85 Total : 941.85 47353 12/18/2020 00915 BMW MOTORCYCLES OF RIVERSIDE 6025677/1 PD VEHICLE MAINTENANCE 62.50 797.79PD VEHICLE MAINTENANCE6025678/2 218.57PD VEHICLE MAINTENANCE6025886/2 959.12PD VEHICLE MAINTENANCE6026009/1 Total : 2,037.98 47354 12/18/2020 00370 CHANDLER ASSET MANAGEMENT, INC 2011MENIFEE 02789 NOV'20 INVESTMENT MGMT FEE 376.52 Total : 376.52 47355 12/18/2020 01374 CIVILPROS COM_1002_202010 02109 OCT'20 CIP20-01 SCOTT ROAD/BUNDY CANYON 139,381.50 Total : 139,381.50 47356 12/18/2020 00776 CORELOGIC SOLUTIONS, LLC 82054460 NOV'20 CORELOGIC LICENSING 322.00 Total : 322.00 47357 12/18/2020 01210 CORKY'S PEST CONTROL 2541174 AMR PEST CONTROL SVCS 75.00 Total : 75.00 47358 12/18/2020 00881 D.R. BECHTER CONSULTING INC.14-002-326 02590 NOV'20 ON-CALL RECOVERABLE CONSTRUCTION 9,405.00 Total : 9,405.00 47359 12/18/2020 00453 DENNIS JANDA, INC.14372 SEP-OCT'20 ON-CALL RECOVERABLE SURVEYING 11,340.00 02617 02617 2,842.50JUL-OCT'20 ON-CALL RECOVERABLE SURVEYING14398 02618 4,555.00ON-CALL NON RECOVERABLE ENGINEERING SURV14441 02617 1,500.00ON-CALL RECOVERABLE SURVEYING & MAPPING14442 Total : 20,237.50 47360 12/18/2020 00883 DHS CONSULTING, INC.1608-11 02176 SEP'20 CIP 16-08 CITYWIDE TRAFFIC SIGNAL 1,208.56 2Page: Item Title:10.2 Warrant Register Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 74 of 828 12/16/2020 Voucher List City of Menifee 3 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 1,208.56 47360 12/18/2020 00883 00883 DHS CONSULTING, INC. 47361 12/18/2020 01988 DIVERSIFIED DISTRIBUTION 2000851 P/W EQUIPMENT MAINTENANCE 478.45 Total : 478.45 47362 12/18/2020 00385 DLT SOLUTIONS, LLC SI499955 02836 AUTOCAD LICENSES 16,390.96 Total : 16,390.96 47363 12/18/2020 00080 DOCU-TRUST 041684 DOC STORAGE & RETRIEVAL SVCS 835.47 Total : 835.47 47364 12/18/2020 00841 DUDEK 202008148 02619 OCT'20 ON-CALL RECOVERABLE CONSTRUCTION 21,615.00 Total : 21,615.00 47365 12/18/2020 00731 ENTERPRISE FM TRUST FBN4103420 02785 DEC'20 MENIFEE PD & CS VEHICLE LEASES 4,160.45 Total : 4,160.45 47366 12/18/2020 01297 ENVIRONMENTAL LOGISTICS, INC 97401-AG 02837 EMERGENCY CLEAN-UP SERVICES 6,258.88 Total : 6,258.88 47367 12/18/2020 01286 FERGUSON PAPE BALDWIN, ARCHITECTS INC.19091-1020 02778 MENIFEE CITY HALL: SPACE NEEDS ASSESSMEN 6,272.50 Total : 6,272.50 47368 12/18/2020 01929 FORENSIC NURSES OF SOCAL, INC 1520 02749 MENIFEE PD: FORENSIC SERVICES 1,200.00 Total : 1,200.00 47369 12/18/2020 01291 HELIXSTORM 10754 02858 COVID-19: REMOTE SUPPORT 870.00 Total : 870.00 47370 12/18/2020 01200 INLAND ELECTRIC INC 5780 CIP16-13 ELECTRICAL WORK FOR P/W MOC 1,225.00 Total : 1,225.00 47371 12/18/2020 00848 KOBATA ASSOCIATES, INC.05 02610 KOBATA-OCT'20 ON-CALL LANDSCAPE DESIGN & 10,850.00 02610 9,387.50NOV'20 ON-CALL LANDSCAPE DESIGN & INSPEC05-1 Total : 20,237.50 47372 12/18/2020 01340 LIGHTS FOR NIGHTS 001146 02860 LIGHTING FOR HOLIDAY DRIVE THRU EVENT 14,996.63 Total : 14,996.63 3Page: Item Title:10.2 Warrant Register Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 75 of 828 12/16/2020 Voucher List City of Menifee 4 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47373 12/18/2020 01031 MENIFEE VALLEY TAEKWONDO ACADE CK REQ 11/18 COMM SVCS INSTRUCTOR PAYMENT 73.50 416.50COMM SVCS INSTRUCTOR PAYMENTCK REQ 12/9 Total : 490.00 47374 12/18/2020 01655 MPA, INC 727 FY 20/21 PROFESSIONAL BACKGROUND INVESTI 1,500.00 Total : 1,500.00 47375 12/18/2020 01968 NETMOTION SOFTWARE, INC.I0054721 02771 MOBILITY TRAINING AND CERTIFICATION 4,131.00 Total : 4,131.00 47376 12/18/2020 01733 NEXTREQUEST CO.1611 02866 ELECTRONIC PUBLIC RECORDS REQUEST MANAGE 8,662.50 Total : 8,662.50 47377 12/18/2020 00863 NV5 INC 186770 00839 SEP-OCT'20 CIP13-04 BRADLEY ROAD BRIDGE 560.92 Total : 560.92 47378 12/18/2020 00716 PACIFIC MOBILE STRUCTURES, INC INV-00130338 02553 DEC'20 PD HQ LOCKER ROOMS & LEASE 3,110.26 02553 3,120.05DEC'20 PD HQ LOCKER ROOMS & LEASEINV-00130339 Total : 6,230.31 47379 12/18/2020 01160 PAYPRO ADMINISTRATORS 76340 HR FORM 1094-C SETUP 1,338.00 Total : 1,338.00 47380 12/18/2020 00252 PURCHASE POWER 0528-2038 NOV'20 NOV'20 POSTAGE REFILL 3,300.00 Total : 3,300.00 47381 12/18/2020 01497 QUINN RENTAL SERVICES 16032301 P/W EQUIPMENT RENTAL 1,385.27 Total : 1,385.27 47382 12/18/2020 01212 R.J. NOBLE COMPANY 183141 P/W MATERIALS & SUPPLIES 96.80 323.80P/W MATERIALS & SUPPLIES183351 98.50P/W MATERIALS & SUPPLIES183494 02512 115,693.39CIP 19-06 SCOTT & MURRIETA RD TRAFFIC SI183870 Total : 116,212.49 47383 12/18/2020 00421 RBF/MICHAEL BAKER CORPORATION 1099482 02722 PROF SVCS AGT FOR NEWPORT POINTE PROJECT 461.25 Total : 461.25 4Page: Item Title:10.2 Warrant Register Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 76 of 828 12/16/2020 Voucher List City of Menifee 5 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47384 12/18/2020 01457 RICK ENGINEERING 18395C(2)02739 OCT'20 CIP 21-09 MURRIETA & SUN CITY BLV 6,772.50 02110 28,385.00SEPT'20 PROF SVCS FOR ENG DRAINAGE PLAN19053A(12) Total : 35,157.50 47385 12/18/2020 00242 RIVERSIDE COUNTY, TLMA ADMINISTRATION TL0000015477 JUL'20 SLF MONTHLY COST 1,690.39 13,442.89AUG'20 SLF MONTHLY COSTTL0000015505 28,405.78SEPT'20 SLF MONTHLY COSTTL0000015548 Total : 43,539.06 47386 12/18/2020 00962 RUTAN & TUCKER, LLP 875727 JUL'20 CITY LEGAL SVCS 877.50 1,989.00AUG'20 CITY LEGAL SVCS878229 41.00SEP'20 CITY LEGAL SVCS881046 369.00SEP'20 CITY LEGAL SVCS881047 3,321.00SEP'20 CITY LEGAL SVCS881048 2,415.98SEP'20 CITY LEGAL SVCS881049 5,413.38SEP'20 CITY LEGAL SVCS881051 138.00SEP'20 CITY LEGAL SVCS881055 460.00SEP'20 CITY LEGAL SVCS881057 5,787.50SEP'20 CITY LEGAL SVCS881058 3,479.00SEP'20 CITY LEGAL SVCS881059 1,791.00SEP'20 CITY LEGAL SVCS881060 7,222.50OCT'20 CITY LEGAL SVCS883377 76.98OCT'20 CITY LEGAL SVCS883381 4,390.23OCT'20 CITY LEGAL SVCS883382 942.00OCT'20 CITY LEGAL SVCS883383 1,932.00OCT'20 CITY LEGAL SVCS883384 818.54OCT'20 CITY LEGAL SVCS883385 154.00OCT'20 CITY LEGAL SVCS883386 552.00OCT'20 CITY LEGAL SVCS883387 8,302.50OCT'20 CITY LEGAL SVCS883388 874.00OCT'20 CITY LEGAL SVCS883389 9,166.24OCT'20 CITY LEGAL SVCS883393 1,794.00NOV'20 CITY LEGAL SVCS883763 989.07NOV'20 CITY LEGAL SVCS883764 276.00NOV'20 CITY LEGAL SVCS883765 2,277.00NOV'20 CITY LEGAL SVCS883766 529.00NOV'20 CITY LEGAL SVCS883767 5Page: Item Title:10.2 Warrant Register Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 77 of 828 12/16/2020 Voucher List City of Menifee 6 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47386 12/18/2020 (Continued)00962 RUTAN & TUCKER, LLP 11,662.50NOV'20 CITY LEGAL SVCS883768 483.00NOV'20 CITY LEGAL SVCS883769 69.00NOV'20 CITY LEGAL SVCS883771 3,994.52NOV'20 CITY LEGAL SVCS883791 273.00NOV'20 CITY LEGAL SVCS883794 Total : 82,860.44 47387 12/18/2020 01318 SEARLE CREATIVE GROUP LLC 20378-PD MARKETING FOR MENIFEE PD DEPT 724.97 Total : 724.97 47388 12/18/2020 00484 SELECT STAFFING 8405989699 TEMP EMP SVCS PE 11/08/20 4,744.11 Total : 4,744.11 47389 12/18/2020 01236 SPICER CONSULTING GROUP LLC 0693 02819 OCT'20 SPECIAL DISTRICT ADMIN SVCS 7,970.28 Total : 7,970.28 47390 12/18/2020 01695 SUSAN SAXE-CLIFFORD 20-1016-1 02289 MENIFEE PD PSYCHOLOGICAL EVALUATION SVCS 425.00 Total : 425.00 47391 12/18/2020 00504 WALLACE & ASSOCIATES 20-02MENIFEE-16-13 02791 OCT'20 CIP 16-13 PUBLIC WORKS LABOR COMP 496.50 02826 741.50OCT'20 CIP 21-01 MURRIETA RD RESURFACING20-02MENIFEE-21-01 02365 1,170.00OCT'20 CIP 20-02 ETHANAC & SHERMAN RD LA20-07MENIFEE-20-02 02852 1,010.00OCT'20 CIP 20-03 GOETZ RD PROJECT LABOR20-08MENIFEE-20-03 Total : 3,418.00 47392 12/18/2020 01958 WARE MALCOMB 706251 MENIFEE TOWN CENTER DRIVE-SITE PLAN EXHI 1,600.00 Total : 1,600.00 47393 12/18/2020 01955 WE CARE PLUMBING HEATING, AIR SOLAR 740483 02776 MINOR HOME REHABILITATION GRANT PROGRAM 5,227.00 02783 1,800.00MINOR HOME REHABILITATION GRANT PROGRAM740483-1 Total : 7,027.00 47394 12/18/2020 01524 WRIGHT SEPTIC 30167 FIRESTATION #5 FACILITY MAINTENANCE 285.00 Total : 285.00 47395 12/18/2020 02016 5 STAR NAILS CK REQ 12/9 02912 CARES SMALL BUSINESS GRANT (5 STAR NAILS 5,000.00 6Page: Item Title:10.2 Warrant Register Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 78 of 828 12/16/2020 Voucher List City of Menifee 7 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 5,000.00 47395 12/18/2020 02016 02016 5 STAR NAILS 47396 12/18/2020 00555 ADAME LANDSCAPING, INC.85460 02580 OCT'20 ROW LANDSCAPE MAINTENANCE SVCS 28,680.40 02580 02579 502.11NOV'20 PLANTER AREA/TURF MAINTENANCE SVC85954 02779 708.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI86146 02779 98.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI86147 02779 81.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI86148 02779 58.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI86149 02779 135.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI86277 02779 59.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI86278 02779 84.00FY 20/21 MAINT SVCS FOR IRRIGATION REPAI86279 Total : 30,405.51 47397 12/18/2020 00990 ADVANCED EMISSIONS SPECIALISTS CK REQ 12/3 02909 CARES SMALL BUSINESS GRANT (ADVANCED EMI 5,000.00 Total : 5,000.00 47398 12/18/2020 00191 AFLAC 621498 DEC'20 INSURANCE PREMIUMS 12,707.12 Total : 12,707.12 47399 12/18/2020 01795 AIR & HOSE SOURCE, INC 404735 P/W EQUIPMENT MAINTENANCE 346.15 4.85P/W EQUIPMENT MAINTENANCE404757 Total : 351.00 47400 12/18/2020 01914 ALCO TARGET COMPANY 69681 PD MATERIALS & SUPPLIES 135.45 Total : 135.45 47401 12/18/2020 00612 ALL AMERICAN ASPHALT 191655 02807 OCT'20 CIP 16-13 PUBLIC WORKS MAINTENANC 153,564.09 02807 103,525.85NOV'20 CIP 16-13 P/W MAINTENANCE & OPERA191962 Total : 257,089.94 47402 12/18/2020 00744 ALLIED TRAFFIC & EQUIP. RENTAL 81676 P/W SIGN MAINT & REPLACEMENT 233.81 1,129.91P/W SIGN MAINT & REPLACEMENT81677 1,310.44P/W SIGN MAINT & REPLACEMENT81733 574.20P/W SIGN MAINT & REPLACEMENT81771 346.64P/W SIGN MAINT & REPLACEMENT81811 348.00P/W SIGN MAINT & REPLACEMENT81821 1,218.00P/W SIGN MAINT & REPLACEMENT81823 7Page: Item Title:10.2 Warrant Register Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 79 of 828 12/16/2020 Voucher List City of Menifee 8 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47402 12/18/2020 (Continued)00744 ALLIED TRAFFIC & EQUIP. RENTAL 1,551.16P/W SIGN MAINT & REPLACEMENT81834 Total : 6,712.16 47403 12/18/2020 01948 APPLEONE EMPLOYMENT SERVICES 01-5716825 CITY CLERK TEMP EMP SVCS PE 10/24/20 1,107.20 941.12CITY CLERK TEMP EMP SVCS PE 10/31/2001-5723638 1,107.20CITY CLERK TEMP EMP SVCS PE 11/07/2001-5729350 1,107.20CITY CLERK TEMP EMP SVCS PE 11/14/2001-5735848 664.32CITY CLERK TEMP EMP SVCS PE 11/21/2001-5743932 Total : 4,927.04 47404 12/18/2020 01646 ARROYO BACKGROUND, INVESTIGATIONS 2358 02848 PROFESSIONAL BACKGROUND INVESTIGATION SE 1,000.00 02848 1,000.00PROFESSIONAL BACKGROUND INVESTIGATION SE2366 02848 1,000.00PROFESSIONAL BACKGROUND INVESTIGATION SE2378 02848 1,000.00PROFESSIONAL BACKGROUND INVESTIGATION SE2383 02848 1,000.00PROFESSIONAL BACKGROUND INVESTIGATION SE2385 02848 1,000.00PROFESSIONAL BACKGROUND INVESTIGATION SE2409 Total : 6,000.00 47405 12/18/2020 00679 AUTOZONE INC.4153261668 COMM SVCS VEHICLE MAINTENANCE 10.64 Total : 10.64 47406 12/18/2020 01203 BALLET FOLKLORICO, LORENA HANCOCK CK REQ 12/9 COMM SVCS INSTRUCTOR PAYMENT 73.80 Total : 73.80 47407 12/18/2020 01908 BICYCLE PATROL OUTFITTERS, LLC 2442 02550 MENIFEE PD PATROL BICYCLES & PATROL BICY 11,235.13 Total : 11,235.13 47408 12/18/2020 02044 BLAKE'S AUTO REPAIR CK REQ 12/8 02914 CARES SMALL BUSINESS GRANT (BLAKE'S AUTO 5,000.00 Total : 5,000.00 47409 12/18/2020 01935 BLITZER'S PREMIUM FROZEN, YOGURT CK REQ 12/3 02910 CARES SMALL BUSINESS GRANT (BLITZER'S PR 5,000.00 Total : 5,000.00 47410 12/18/2020 01943 BRADLEY FAMILY DENTAL GROUP CK REQ 12/8 02895 CARES SMALL BUSINESS GRANT (BRADLEY FAMI 5,000.00 Total : 5,000.00 47411 12/18/2020 00135 CALIFORNIA BUILDING STANDARDS CK REQ 11/30 GREEN FEES QTR ENDING 9/30/20 9,090.00 8Page: Item Title:10.2 Warrant Register Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 80 of 828 12/16/2020 Voucher List City of Menifee 9 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 9,090.00 47411 12/18/2020 00135 00135 CALIFORNIA BUILDING STANDARDS 47412 12/18/2020 01612 CAZCOM, INC 39299 02798 PARK RANGER DISPATCH RADIOS 9,715.73 Total : 9,715.73 47413 12/18/2020 01957 CITIBOT, INC 320 02719 SOFTWARE SUBSCRIPTION AGREEMENT FOR CITI 2,000.00 Total : 2,000.00 47414 12/18/2020 01945 CLEVER FOX ESCAPE ROOMS CK REQ 12/3 02888 CARES SMALL BUSINESS GRANT (CLEVER FOX E 5,000.00 Total : 5,000.00 47415 12/18/2020 00611 CMRTA 1770 CMRTA MEMBERSHIP 2020 125.00 Total : 125.00 47416 12/18/2020 00932 COAST RECREATION, INC.13617 02711 PLAYGROUND EQUIPMENT REPLACEMENT 10,712.04 Total : 10,712.04 47417 12/18/2020 01444 DASH PLATFORM 69985 02701 DEC'20 DASH SOFTWARE SERVICE FEE 416.66 Total : 416.66 47418 12/18/2020 00344 DBX, INC.R684-RET RETENTION FOR CIP 17-05 CITYWIDE ADA/PED 33,070.99 02441 74,232.91NOV'20 CIP 20-06 & 20-07 TRAFFIC SIGNALR687-04 Total : 107,303.90 47419 12/18/2020 00136 DEPARTMENT OF CONSERVATION, DIV OF ADMIN SVCS, ACCTGCK REQ 11/30 SMIP FEES QTR ENDING 9/30/20 27,986.05 Total : 27,986.05 47420 12/18/2020 02010 DIANA'S DANCE COMPANY CK REQ 12/8 02908 CARES SMALL BUSINESS GRANT (DIANA'S DANC 5,000.00 Total : 5,000.00 47421 12/18/2020 01178 DIRECTV LLC 004016741X201116 NOV20 FIRE STATION #7 SATELLITE SVCS 272.24 Total : 272.24 47422 12/18/2020 00673 DL IMAGING ARINV012897 02752 FY20/21 MILITARY BANNER PROGRAM 3,308.04 Total : 3,308.04 47423 12/18/2020 01910 DONNOE & ASSOCIATES, INC 8622 PRE-EMPLOYMENT HIRING EXAMS 440.00 Total : 440.00 9Page: Item Title:10.2 Warrant Register Item Page Number:27 Menifee Mayor and City Council January 20,2021 Page 81 of 828 12/16/2020 Voucher List City of Menifee 10 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47424 12/18/2020 00871 DOWNTOWN FORD SALES 316784 02487 PUBLIC WORKS FACILITIES VEHICLE PURCHASE 38,096.03 02487 Total : 38,096.03 47425 12/18/2020 01772 DUNN-EDWARDS CORPORATION 2191014431 GRAFFITI ABATEMENT SUPPLIES 153.06 Total : 153.06 47426 12/18/2020 00161 EASTERN MUNICIPAL WATER DIST.101923-02 11/23 NOV'20 CSA 145 WATER SVCS 821.04 312.70NOV'20 LLMD ZONE 38 WATER SVCS197480-04 12/3 279.32NOV'20 LLMD ZONE 38 WATER SVCS197482-04 12/3 209.03NOV'20 LLMD ZONE 38 WATER SVCS197483-04 12/3 194.26 NOV'20 LLMD ZONE 38 WATER SVCS197486-04 12/3 467.19NOV'20 LLMD ZONE 37 WATER SVCS209502-03 12/3 242.56NOV'20 LLMD ZONE 47 WATER SVCS214104-03 12/3 1,830.37OCT'20 CSA 145 WATER SVCS226312-03 11/5 342.08NOV'20 LLMD ZONE 3 WATER SVCS231135-03 11/20 302.40NOV'20 LLMD ZONE 3 WATER SVCS231149-03 11/20 212.80NOV'20 LLMD ZONE 3 WATER SVCS231150-03 11/20 251.87NOV'20 NEWPORT/HAUN STREET MEDIAN WATER234911-01 12/3 610.88NOV'20 HAUN RD WATER SVCS236550-01 11/20 1,340.31OCT'20 AMR ROW WATER SVCS236610-02 11/5 621.50NOV'20 AMR SPORTS PARK IRRIGATION237538-02 11/20 181.71NOV'20 AMR ROW WATER SVCS238346-02 11/20 526.40NOV'20 AMR ROW IRRIGATION SVCS238455-02 11/20 335.31NOV'20 AMR ROW WATER SVCS238834-02 11/20 393.28NOV'20 AMR ROW WATER SVCS238835-02 11/20 340.43NOV'20 AMR ROW WATER SVCS238836-02 11/20 786.24NOV'20 SPIRIT WATER SVCS239155-02 11/20 3,786.38OCT'20 LLMD ZONE 3 WATER SVCS239165-02 11/5 3,631.19OCT'20 AMR ROW WATER SVCS240232-02 11/5 178.60NOV'20 TOWN CENTER ROW WATER SVCS240243-02 11/20 2,014.99OCT'20 LLMD ZONE 77 WATER SVCS240567-02 11/5 277.71NOV'20 AMR WATER SVCS240844-03 11/20 156.06NOV'20 FIRE STATION #7 WATER SVC241468-01 12/3 357.07NOV'20 MAYFIELD PARK IRRIGATION SVCS247265-02 11/20 322.51NOV'20 AMR CREEK VIEW IRRIGATION SVCS247266-02 11/20 432.96NOV'20 AMR SILVERSTAR IRRIGATION WATER S248650-02 11/20 10Page: Item Title:10.2 Warrant Register Item Page Number:28 Menifee Mayor and City Council January 20,2021 Page 82 of 828 12/16/2020 Voucher List City of Menifee 11 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47426 12/18/2020 (Continued)00161 EASTERN MUNICIPAL WATER DIST. 174.76NOV'20 TOWN CENTER ROW WATER SVCS249510-02 11/20 258.56NOV'20 TOWN CENTER ROW WATER SVCS249511-02 11/20 624.95NOV'20 CENTRAL PARK IRRIGATION SVCS250347-02 11/20 650.56NOV'20 CENTENNIAL PARK IRRIGATION WATER252060-02 11/20 271.73NOV'20 CHERRY HILLS BLVD ST MEDIAN WATER4065-02 12/3 210.53NOV'20 P/W MOC WATER SVCS9926-02 12/3 Total : 23,950.24 47427 12/18/2020 00161 EASTERN MUNICIPAL WATER DIST.1827-05 12/3 NOV'20 WATER SVCS FIRE STATION #5 131.60 132.15NOV'20 LLMD ZONE 38 WATER SVCS197481-04 12/3 98.66NOV'20 LLMD ZONE 3 WATER SVCS217419-03 12/3 64.11NOV'20 BRADLEY RD ROW WATER SVCS234982-01 12/3 99.24NOV'20 LA PIEDRA/SHERMAN IRRIGATION WATE237370-01 11/20 85.06NOV'20 SUN CITY ROW IRRIGATION240219-01 12/3 152.32NOV'20 TOWN CENTER ROW WATER SVCS240236-02 11/20 110.08NOV'20 TOWN CENTER ROW WATER SVCS240240-02 11/20 98.56NOV'20 TOWN CENTER ROW WATER SVCS240244-02 11/20 38.57NOV'20 FIRE STATION #7 WATER SVCS240865-01 12/3 52.83OCT'20 CSA 145 WATER SVCS246112-02 11/5 139.84NOV'20 CENTENNIAL PARK IRRIGATION WATER252061-02 11/20 81.22NOV'20 AIR GAP CONSTRUCTION WATER METER971614-01 11/30 Total : 1,284.24 47428 12/18/2020 02038 EMBASSY CONSULTING, SERVICES, LLC 10109 CRISIS INTERVENTION AND BEHAVIRIAL HEALT 1,000.00 Total : 1,000.00 47429 12/18/2020 00804 EMPLOYMENT DEVELOPMENT DEPT.L0769342944 3RD QTR UNEMPLOYMENT CHARGES 12,276.90 Total : 12,276.90 47430 12/18/2020 01042 FISHER WIRELESS SERVICES, INC 068820 SEP'20 CITY RADIO CHARGES 232.56 232.56JAN'21 CITY RADIO CHARGES070350 Total : 465.12 47431 12/18/2020 01142 FRONTIER CALIFORNIA INC.213-166-6081 11/16 NOV'20 WEST ANNEX FIOS SVC 290.98 300.98NOV'20 SPIRIT PARK FIOS310-010-9929 11/19 425.19NOV'20 CITY HALL IP CIRCUIT310-150-0013 11/6 11Page: Item Title:10.2 Warrant Register Item Page Number:29 Menifee Mayor and City Council January 20,2021 Page 83 of 828 12/16/2020 Voucher List City of Menifee 12 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47431 12/18/2020 (Continued)01142 FRONTIER CALIFORNIA INC. 140.98NOV'20 SENIOR CENTER FIOS SVCS323-159-1679 11/10 370.98NOV'20 MENIFEE PD FIOS SVCS323-160-9666 11/7 130.98NOV'20 FIRESTATION #7 FIOS SVCS951-679-0060 11/07 427.54NOV'20 PW YARD FIOS SVCS951-679-2323 11/6 363.07NOV'20 CITY HALL ROLLOVER LINES SVC951-679-8527 11/19 Total : 2,450.70 47432 12/18/2020 02022 GALLANT MEDICAL SUPPLY, INC CK REQ 12/8 02889 CARES SMALL BUSINESS GRANT (GALLANT MEDI 5,000.00 Total : 5,000.00 47433 12/18/2020 01322 GEOCON WEST INC 720100464 02816 CIP 19-06 SCOTT & MURRIETA RD TRAFFIC SI 5,956.25 Total : 5,956.25 47434 12/18/2020 00139 GHA TECHNOLOGIES INC 101076065 ADDITIONAL WEBCAMS FOR COVID-19 984.19 02781 24,098.75COVID-19 MICROSOFT LAPTOPS PHASE I101082732 1,200.57ARUBA 10GB SFP RECEIVER101085290 02712 23,702.00COVID 19 REMOTE ACCESS- BEYONDTRUST101085292 02822 17,192.85COVID-19 MICROSOFT LAPTOPS PHASE II101087032 02809 1,941.19HEADSETS FOR REMOTE/VIRTUAL WORK FORCE101087688 02922 6,761.38GETAC FOR MENIFEE POLICE DEPARTMENT101087690 02922 33,806.88GETAC FOR MENIFEE POLICE DEPARTMENT101087693 Total : 109,687.81 47435 12/18/2020 01310 GOLDSTAR ASPHALT PRODUCTS 17419 P/W MATERIALS & SUPPLIES 145.73 Total : 145.73 47436 12/18/2020 00908 GOSCH AUTO GROUP 1024278 PD VEHICLE MAINTENANCE 69.06 Total : 69.06 47437 12/18/2020 01944 GRACIE'S LUNCHBOX CK REQ 12/8 02898 CARES SMALL BUSINESS GRANT (GRACIE'S LUN 5,000.00 Total : 5,000.00 47438 12/18/2020 02009 GREAT CLIPS CK REQ 12/8 02915 CARES SMALL BUSINESS GRANT (GREAT CLIPS) 5,000.00 Total : 5,000.00 47439 12/18/2020 01983 GREAT WESTERN RECREATION 2002037 PARK TABLES 1,989.22 12Page: Item Title:10.2 Warrant Register Item Page Number:30 Menifee Mayor and City Council January 20,2021 Page 84 of 828 12/16/2020 Voucher List City of Menifee 13 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 1,989.22 47439 12/18/2020 01983 01983 GREAT WESTERN RECREATION 47440 12/18/2020 00921 HD SUPPLY CONSTRUCTION SUPPLY 10013335760 P/W MATERIALS & SUPPLIES 347.15 Total : 347.15 47441 12/18/2020 00650 HDL SOFTWARE, LLC SIN005206 OCT'20 HDL ONLINE CC PROCESSING SVCS 383.60 Total : 383.60 47442 12/18/2020 01043 IMPERIAL SPRINKLER SUPPLY 4437273-00 HIDDEN HILLS PARK IRRIGATION SUPPLIES 62.92 Total : 62.92 47443 12/18/2020 01471 INFRASTRUCTURE ENGINEERING, CORPORATION13116 02469 OCT'20 CIP 20-06 TRAFFIC SIGNAL LABOR CO 570.00 02440 522.50OCT'20 CIP 19-06 SCOTT & MURRIETA RD TRA13117 Total : 1,092.50 47444 12/18/2020 01054 INLAND OVERHEAD DOOR 46137 FIRESTATION FACILITY MAINTENANCE 345.75 Total : 345.75 47445 12/18/2020 02023 J.C. ROMERO D.D.S., INC CK REQ 12/8 02917 CARES SMALL BUSINESS GRANT (J.C. ROMERO 5,000.00 Total : 5,000.00 47446 12/18/2020 02008 KNIGHTEN ELECTRIC CK REQ 12/9 02919 CARES SMALL BUSINESS GRANT (KNIGHTEN ELE 3,847.00 Total : 3,847.00 47447 12/18/2020 01331 KOA CORPORATION JB91167-14 02624 OCT'20 NON-RECOVERABLE GRANT MANAGEMENT 2,635.00 Total : 2,635.00 47448 12/18/2020 01852 LANGUAGE LINE SERVICES, INC 4923284 02575 NOV'20 COMPREHENSIVE INTERPRETATION 66.21 Total : 66.21 47449 12/18/2020 00525 LIEBERT CASSIDY WHITMORE 1509142 OCT'20 CITY LEGAL SVCS 152.00 Total : 152.00 47450 12/18/2020 02024 LOS DE SANTIAGO'S, AUTO BODY LLC CK REQ 12/8 02894 CARES SMALL BUSINESS GRANT (LOS DE SANTI 5,000.00 Total : 5,000.00 47451 12/18/2020 02007 LOVELY NAILS CK REQ 12/8 02899 CARES SMALL BUSINESS GRANT (LOVELY NAILS 5,000.00 Total : 5,000.00 13Page: Item Title:10.2 Warrant Register Item Page Number:31 Menifee Mayor and City Council January 20,2021 Page 85 of 828 12/16/2020 Voucher List City of Menifee 14 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47452 12/18/2020 01885 LYNN PEAVEY COMPANY 374623 PD MATERIALS & SUPPLIES 199.88 141.10PD MATERIALS & SUPPLIES374725 Total : 340.98 47453 12/18/2020 02012 M3K MENIFEE LLC CK REQ 12/3 02893 CARES SMALL BUSINESS GRANT (M3K MENIFEE 5,000.00 Total : 5,000.00 47454 12/18/2020 02047 MARCINKO, AMBER CK REQ 11.30 PER DIEM FOR FIREARMS TRAINING 122.00 Total : 122.00 47455 12/18/2020 02014 MCNEAL & ASSOCIATES INSURANCE CK REQ 12/9 02918 CARES SMALL BUSINESS GRANT (MCNEAL & ASS 5,000.00 Total : 5,000.00 47456 12/18/2020 01245 MDG ASSOCIATES, INC.14636 JUL'20 CDBG SUPPORT SERVICES 777.50 70.00AUG'20 CDBG SUPPORT SERVICES14718 22.50SEP'20 CDBG SUPPORT SERVICES14821 Total : 870.00 47457 12/18/2020 00866 MENIFEE 24/7 20201203 ADVERTISING FOR COVID-19 ASSISTANCE 1,320.00 660.00ADVERTISING MEASURE DD20201203-DD 1,200.00ADVERTISING FOR COVID-19 ASSISTANCE20201205 1,200.00ADVERTISING FOR COVID-19 ASSISTANCE20201206 Total : 4,380.00 47458 12/18/2020 02042 MENIFEE THREADING STUDIO CK REQ 12/8 02900 CARES SMALL BUSINESS GRANT (MENIFEE THRE 5,000.00 Total : 5,000.00 47459 12/18/2020 01563 MERCHANTS BUILDING MAINTENANCE 600735 02840 COVID-19 DISINFECTING SERVICES 4,704.00 02840 4,928.00COVID-19 DISINFECTING SERVICES604602 02665 8,412.35DEC'20 JANITORIAL SERVICES605979 Total : 18,044.35 47460 12/18/2020 01963 MERNA'S CAFE & GRILL INC CK REQ 12/8 02913 CARES SMALL BUSINESS GRANT (MERNA'S CAFE 5,000.00 Total : 5,000.00 47461 12/18/2020 00474 TRACY GUERRA PROEM CK REQ 11/13 REFUND OF TEMP APP FEE PLN20-296 3,235.00 Total : 3,235.00 14Page: Item Title:10.2 Warrant Register Item Page Number:32 Menifee Mayor and City Council January 20,2021 Page 86 of 828 12/16/2020 Voucher List City of Menifee 15 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47462 12/18/2020 00474 LINE WORKS CONSTRUCTION INC CK REQ 12/2 REIMB. FOR DOUBLE PYMT OF EP20-315 704.00 Total : 704.00 47463 12/18/2020 00474 MARIANA CUADRAS CK REQ 12/8 REFUND FOR CANCELLED CLASS 140.00 Total : 140.00 47464 12/18/2020 02043 MOUNTAIN MIKE'S PIZZA CK REQ 12/9 02901 CARES SMALL BUSINESS GRANT (MOUNTAIN MIK 5,000.00 Total : 5,000.00 47465 12/18/2020 01472 MTGL, INC 0064509 02755 SOIL REPORT FOR MUSCO SPORTS LIGHTING 337.50 Total : 337.50 47466 12/18/2020 01381 MURRIETA PARTNERSHIP 156 PARTNERSHIP TO PURCHASE DATA FOR ANGEL I 1,000.00 Total : 1,000.00 47467 12/18/2020 00991 NEW HUB AUTO SERVICE CK REQ 12/3 02897 CARES SMALL BUSINESS GRANT (NEW HUB AUTO 5,000.00 Total : 5,000.00 47468 12/18/2020 02025 NUTRISHOP MENIFEE CK RE 12/3 02886 CARES SMALL BUSINESS GRANT (NUTRISHOP) 5,000.00 Total : 5,000.00 47469 12/18/2020 01558 OCCUPATION HEALTH CENTERS, OF CALIFORNIA69278759 PRE-EMPLOYMENT TESTING SVCS 87.00 87.00PRE-EMPLOYMENT TESTING SVCS69489966 174.00PRE-EMPLOYMENT TESTING SVCS69547893 1,498.50PRE-EMPLOYMENT TESTING SVCS69613758 1,562.00PRE-EMPLOYMENT TESTING SVCS69685099 Total : 3,408.50 47470 12/18/2020 01781 ODYSSEY POWER CORPORATION 107621 02811 FIRESTATION #76 FACILITY MAINTENANCE 3,140.24 Total : 3,140.24 47471 12/18/2020 01130 O'REILLY AUTO PARTS 4746-160105 FLEET MATERIALS & SUPPLIES 177.41 48.34P/W EQUIPMENT MAINTENANCE4746-160114 350.14PD VEHICLE MAINTENANCE (VEH#20-06)4746-161847 Total : 575.89 47472 12/18/2020 01674 PACIFIC ALARM SERVICE J-601001242 02796 ADDITIONAL SECURITY CAMERAS & IMPROVEMEN 9,603.47 15Page: Item Title:10.2 Warrant Register Item Page Number:33 Menifee Mayor and City Council January 20,2021 Page 87 of 828 12/16/2020 Voucher List City of Menifee 16 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 9,603.47 47472 12/18/2020 01674 01674 PACIFIC ALARM SERVICE 47473 12/18/2020 01096 PAPER RECYCLING & SHREDDING, SPECIALISTS INC.473748 CITY HALL DOC SHREDDING SVCS 105.00 Total : 105.00 47474 12/18/2020 01843 PARKHOUSE TIRE, INC 2010709379 CODE ENF VEHICLE MAINTENANCE (VEH#112) 803.57 Total : 803.57 47475 12/18/2020 01886 PECHANGA BAND OF LUISENO, MISSION INDIANS13760 02561 CIP 19-06 TRIBAL MONITORING SVCS SCOTT & 98.00 Total : 98.00 47476 12/18/2020 02020 PETE'S MUSIC CK REQ 12/8 02902 CARES SMALL BUSINESS GRANT (PETE'S MUSIC 5,000.00 Total : 5,000.00 47477 12/18/2020 01942 PHYSICAL THERAPY OF MENIFEE CK REQ 12/8 02896 CARES SMALL BUSINESS GRANT (PHYSICAL THE 5,000.00 Total : 5,000.00 47478 12/18/2020 02041 PREMIER LASER & DAY SPA CK REQ 12/8 02920 CARES SMALL BUSINESS GRANT (MENIFEE LASE 5,000.00 Total : 5,000.00 47479 12/18/2020 02019 PREMIER URGENT CARE, PREMIER FAMILY CARECK REQ 12/9 02903 CARES SMALL BUSINESS GRANT (PREMIER URGE 5,000.00 Total : 5,000.00 47480 12/18/2020 01065 PRUDENTIAL OVERALL SUPPLY 21034510 P/W UNIFORMS 326.25 646.77COMM SVCS UNIFORM LAUNDRY SVCS23077538 128.85P/W UNIFORM LAUNDRY SVCS23080851 43.27P/W LAUNDRY SVCS23080852 346.95P/W UNIFORM LAUNDRY SVCS23083968 43.27P/W LAUNDRY SVCS23083969 43.27P/W LAUNDRY SVCS23087034 Total : 1,578.63 47481 12/18/2020 00006 R&R BUSINESS SOLUTIONS CK REQ 12/8 02887 CARES SMALL BUSINESS GRANT (R & R BUSINE 5,000.00 Total : 5,000.00 47482 12/18/2020 00006 R&R BUSINESS SOLUTIONS 8538 PRINTING SVCS 310.48 Total : 310.48 16Page: Item Title:10.2 Warrant Register Item Page Number:34 Menifee Mayor and City Council January 20,2021 Page 88 of 828 12/16/2020 Voucher List City of Menifee 17 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47483 12/18/2020 00013 READYREFRESH 10K0029762325 CITY HALL BOTTLE WATER SUPPLY 578.47 Total : 578.47 47484 12/18/2020 00500 RIVERSIDE HABITAT CONSERVATION CK REQ 12/10 NOV'20 K-RAT FEES 2,505.00 Total : 2,505.00 47485 12/18/2020 00927 ROAD WORKS INC.19H335SC-4 02923 ASPHALT CRACK SEAL SERVICES 8,400.00 02923 8,400.00ASPHALT CRACK SEAL SERVICES19H335SC-5 02923 8,400.00ASPHALT CRACK SEAL SERVICES19H335SC-6 Total : 25,200.00 47486 12/18/2020 00456 ROGERS, ANDERSON, MALODY 64627 02786 FY 19/20 AUDIT SERVICES 12,810.00 Total : 12,810.00 47487 12/18/2020 01858 SAFETY-KLEEN SYSTEMS, INC 84685449 FLEET PROFESSIONAL SERVICES 244.00 Total : 244.00 47488 12/18/2020 01453 SIGNS BY TOMORROW 26046 02659 FY 20/21 PUBLIC HEARING NOTICE SIGNAGE S 721.50 Total : 721.50 47489 12/18/2020 02046 SKYLAR CK REQ 12/8 02916 CARES SMALL BUSINESS GRANT (SKYLAR)(CREA 4,780.75 Total : 4,780.75 47490 12/18/2020 01640 SO CAL SHORT LOAD INC 001075 P/W MATERIALS & SUPPLIES 620.00 Total : 620.00 47491 12/18/2020 01663 SONSRAY MACHINERY, LLC P40157-02 P/W EQUIPMENT MAINTENANCE 94.79 605.65P/W EQUIPMENT MAINTENANCEW06732-02 Total : 700.44 47492 12/18/2020 00046 SOUTHERN CALIFORNIA EDISON CK REQ 12/8 02869 CIP 20-01 BUNDY CANYON/SCOTT RD WIDENING 75,000.00 Total : 75,000.00 47493 12/18/2020 00046 SOUTHERN CALIFORNIA EDISON 2-30-857-8947 11/18 OCT'20 POLICE HEADQUARTERS ELECTRICAL SV 2,617.33 1,194.41NOV'20 CSA 145-IRRIGATION SVCS2-31-716-9357 11/24 85.23NOV'20 DERBY HILL TC-1 SIGNAL SVCS2-35-338-9109 11/21 47.58NOV'20 DERBY HILL TC-1 SIGNAL SVC2-35-338-9240 11/21 1,060.12SEPT'20 CITY SIGNAL SVCS2-36-200-0267 10/27 17Page: Item Title:10.2 Warrant Register Item Page Number:35 Menifee Mayor and City Council January 20,2021 Page 89 of 828 12/16/2020 Voucher List City of Menifee 18 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47493 12/18/2020 (Continued)00046 SOUTHERN CALIFORNIA EDISON 297.56OCT'20 CITY SIGNAL SVCS2-36-751-2365 11/14 25.50OCT'20 TOWN CENTER STREETLIGHT SVCS2-37-161-9065 11/13 12.87NOV'20 LLMD ZONE 3 IRRIGATION2-38-230-0713 12/5 2,650.59OCT'20 FIRE STATIONS ELECTRICAL SVCS2-39-846-6326 11/13 336.88NOV'20 PD SUB STATION ELECTRICAL2-39-982-6494 12/2 284.19NOV'20 P/W MOC ELECTRICAL SVCS2-40-098-0702 12/5 64.19NOV'20 AMR STREET LIGHT SVCS2-41-025-9733 11/21 26.83NOV'20 AMR STREET LIGHT SVC2-41-025-9790 11/21 70.91NOV'20 AMR STREET LIGHT SVCS2-41-130-6095 12/2 13.29NOV'20 CFD 2014-1 TOWN CENTER IRRIGATION2-41-461-2358 12/5 26.30OCT'20 AMR SPORTS PARK ELECTRIC SVCS2-42-069-6999 11/13 125.44NOV'20 AMR STREET LIGHT SVCS2-42-955-0510 11/28 Total : 8,939.22 47494 12/18/2020 00861 STAPLES CONTRACT & COMMERICAL 8060498890 NOV'20 OFFICE SUPPLIES 3,355.61 Total : 3,355.61 47495 12/18/2020 00283 STATE OF CALIFORNIA, DEPARTMENT OF JUSTICE470445 AUG'20 BLOOD ALCOHOL ANALYSIS 140.00 Total : 140.00 47496 12/18/2020 01010 STC TRAFFIC, INC.4188-B 02632 STC - JUL'20 RECOVERABLE ENGINEERING SVC 14,826.75 02305 4,600.17OCT'20 CIP 19-03 ANTELOPE RD ENGINEERING4354 02633 11,452.00SEP-OCT'20 ON-CALL NON-RECOVERABLE TRAFF4356-A Total : 30,878.92 47497 12/18/2020 02033 SUBMARINA MENIFEE CK REQ 12/8 MEALS FOR SENIOR LUNCHES 980.00 Total : 980.00 47498 12/18/2020 01947 SUN CITY BARBER SHOP CK REQ 12/3 02890 CARES SMALL BUSINESS GRANT (SUN CITY BAR 4,569.08 Total : 4,569.08 47499 12/18/2020 02021 SUN CITY FAMILY RESTAURANT CK REQ 12/3 02891 CARES SMALL BUSINESS GRANT (SUN CITY FAM 4,939.02 Total : 4,939.02 47500 12/18/2020 00098 THE GAS COMPANY 114 347 5472 4 12/3 NOV'20 FIRESTATION #76 GAS SVCS 280.46 Total : 280.46 18Page: Item Title:10.2 Warrant Register Item Page Number:36 Menifee Mayor and City Council January 20,2021 Page 90 of 828 12/16/2020 Voucher List City of Menifee 19 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47501 12/18/2020 00854 THE LLOYD PEST CONTROL CO, INC 7248663 NOV'20 P/W PEST CONTROL SVCS 70.00 99.00NOV'20 PD HQ PEST CONTROL SVCS7253998 75.00DEC'20 CITY HALL PEST CONTROL SVCS7262507 Total : 244.00 47502 12/18/2020 02026 THE MASON JAR BREWING, COMPANY LLC CK REQ 12/8 02892 CARES SMALL BUSINESS GRANT (THE MASON JA 5,000.00 Total : 5,000.00 47503 12/18/2020 02013 THE PET PARLOR CK REQ 12/9 02911 CARES SMALL BUSINESS GRANT (THE PET PARL 5,000.00 Total : 5,000.00 47504 12/18/2020 01585 THOMSON REUTERS- WEST 843263597 02543 OCT'20 PD PUBLIC RECORDS INFORMATION SVC 658.40 Total : 658.40 47505 12/18/2020 01064 TRI STATE MATERIALS INC 93410 P/W MATERIALS & SUPPLIES 258.60 Total : 258.60 47506 12/18/2020 00054 TYLER TECHNOLOGIES, INC, EDEN SYSTEMS DIVISION025-315613 MY CITY APP SUBSCRIPTION 1,157.63 Total : 1,157.63 47507 12/18/2020 00703 UEBER HAUN I, LLC 102 JAN'21 LAND LEASE AGREEMENT 5,002.90 Total : 5,002.90 47508 12/18/2020 02006 UNIFORM SPECIALIST 105362 UNIFORMS FOR PARK RANGERS 624.48 Total : 624.48 47509 12/18/2020 00189 VERIZON WIRELESS 9867639228 NOV'20 PD MOBILE CHARGES 4,557.61 Total : 4,557.61 47510 12/18/2020 02011 WABA GRILL #011 CK REQ 12/3 02885 CARES SMALL BUSINESS GRANT (WABA GRILL) 5,000.00 Total : 5,000.00 47511 12/18/2020 01119 WEST COAST ARBORISTS INC.166566 02592 FY2020/21 ON-CALL RIGHT-OF-WAY TREE MAIN 564.00 Total : 564.00 47512 12/18/2020 01715 WESTERN A/V 14616 02667 FY 20/21 ON-CALL AUDIO VISUAL (AV) SYSTE 4,293.45 02667 419.23FY 20/21 ON-CALL AUDIO VISUAL (AV) SYSTE14617 02667 1,200.00FY 20/21 ON-CALL AUDIO VISUAL SYSTEM TEC14647 19Page: Item Title:10.2 Warrant Register Item Page Number:37 Menifee Mayor and City Council January 20,2021 Page 91 of 828 12/16/2020 Voucher List City of Menifee 20 5:37:10PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 5,912.68 47512 12/18/2020 01715 01715 WESTERN A/V 47513 12/18/2020 02018 WOLFEE DONUTS CK REQ 12/8 02904 CARES SMALL BUSINESS GRANT (WOLFEE DONUT 5,000.00 Total : 5,000.00 47514 12/18/2020 00157 WRCOG 571 02844 FY20/21 SOLID WASTE COOPERATION DUES 5,678.00 Total : 5,678.00 47515 12/18/2020 00143 WRCRCA CK REQ 12/10 NOV 2020 - MSHCP FEES 203,294.00 Total : 203,294.00 Bank total : 1,991,911.33 172 Vouchers for bank code :uboc 1,991,911.33Total vouchers :Vouchers in this report 172 20Page: Item Title:10.2 Warrant Register Item Page Number:38 Menifee Mayor and City Council January 20,2021 Page 92 of 828 12/30/2020 Voucher List City of Menifee 1 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47516 12/21/2020 02026 THE MASON JAR BREWING, COMPANY LLC CK REQ 12/8 02921 CARES SMALL BUSINESS GRANT (MASON JAR BR 5,000.00 Total : 5,000.00 47517 12/21/2020 00474 INLAND PAIN SPECIALIST CK REQ 11/24 REFUND SECURITY DEPOSIT PMT20-01005 10,000.00 Total : 10,000.00 47518 12/28/2020 02055 SOUTHERN CALIFORNIA EDISON 7590342227 02940 STREETLIGHT RETROFIT PROJECT (FINAL LIGH 13,904.09 Total : 13,904.09 47519 12/31/2020 01889 ADLERHORST INTERNATIONAL LLC 105286 02500 MENIFEE PD POLICE SERVICE DOG 12,121.88 Total : 12,121.88 47520 12/31/2020 01252 AMAZON CAPITAL SERVICES, INC.1973-7T4D-6RYW COMM SVCS SUPPLIES 59.73 35.88COVID-19 SUPPLIES19MY-37MR-GXPG 207.42CFD FACILITIES MAINTENANCE1CNW-HK71-M73J -45.66PD MATERIALS & SUPPLIES1FDX-TGFT-YVDF 93.83HOLIDAY EVENT SUPPLIES1FNC-JNL1-1M1W 216.00PD OFFICE SUPPLIES1JWG-WMPJ-FT9D 19.56OFFICE SUPPLIES1JWG-WMPJ-MQL6 1,740.00LAPTOP SUPLLIES FOR COVID-191K7X-3VQW-J4MT 462.04HOLIDAY EVENT SUPPLIES1MCP-K77K-RJK7 32.59OFFICE SUPPLIES1NCR-Y33M-HNH7 817.83PD MATERIALS & SUPPLIES1NFL-1JPW-WJVK -39.72OFFICE SUPPLIES1P9T-T1CK-4FTG 17.44PD MATERIALS & SUPPLIES1PCM-KNT6-DR77 280.35COVID-19 SUPPLIES1QHR-K9HN-673K Total : 3,897.29 47521 12/31/2020 00123 AMBER MANAGEMENT, LLC JAN'21 JAN'21 CITY HALL MONTHLY RENT 37,227.42 28,555.04JAN'21 PD HEADQUARTERS MONTHLY RENTJAN'21 PD Total : 65,782.46 47522 12/31/2020 00258 AMERICAN FORENSIC NURSES, INC 74028 02554 JAN'21 MENIFEE PD FORENSIC SERVICES 300.00 02554 495.00NOV'20 MENIFEE PD FORENSIC SERVICES74038 02554 85.00NOV'20 MENIFEE PD FORENSIC SERVICES74074 02554 140.00NOV'20 MENIFEE PD FORENSIC SERVICES74130 1Page: Item Title:10.2 Warrant Register Item Page Number:39 Menifee Mayor and City Council January 20,2021 Page 93 of 828 12/30/2020 Voucher List City of Menifee 2 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47522 12/31/2020 (Continued)00258 AMERICAN FORENSIC NURSES, INC 02554 55.00NOV'20 MENIFEE PD FORENSIC SERVICES74131 Total : 1,075.00 47523 12/31/2020 01516 CN ENGINEERING, INC 02616-04 02616 CN ENG- OCT'20 RECOVERABLE ON-CALL ENGIN 3,510.00 Total : 3,510.00 47524 12/31/2020 00949 CR&R INCORPORATED 0002481 02817 NOV'20 STREET SWEEPING SERVICES 4,591.54 Total : 4,591.54 47525 12/31/2020 00881 D.R. BECHTER CONSULTING INC.14-002-327 02590 NOV-DEC'20 ON-CALL RECOVERABLE CONSTRUCT 7,920.00 Total : 7,920.00 47526 12/31/2020 00453 DENNIS JANDA, INC.14444 02617 DENNIS-NOV'20 ON-CALL RECOVERABLE SURVEY 10,615.00 Total : 10,615.00 47527 12/31/2020 01988 DIVERSIFIED DISTRIBUTION 2000872 P/W VEHICLE MAINTENANCE (VEH#209) 103.30 Total : 103.30 47528 12/31/2020 01299 DONALD HOBBS CK REQ 12/17 JAN'21 LEASE FOR POLICE SUBSTATION 2,030.00 Total : 2,030.00 47529 12/31/2020 01810 DOOLEY ENTERPRISES, INC 59156 02874 MENIFEE PD TRAINING AMMUNITION 11,815.87 Total : 11,815.87 47530 12/31/2020 01533 FASTSIGNS TEMECULA 581-99077 CITY HALL OFFICE SUPPLIES 97.88 Total : 97.88 47531 12/31/2020 01921 HARDY & HARPER, INC.1 02806 CIP 21-01 MURRIETA RD STREET RESURFACING 939,567.83 Total : 939,567.83 47532 12/31/2020 02032 HELIX ENVIRONMENTAL, PLANNING, INC 105051 02907 CIP17-01 EVANS PARK CONSTRUCTION & DESIG 8,538.10 Total : 8,538.10 47533 12/31/2020 01291 HELIXSTORM 10378 02763 FY20/21 IT PROFESSIONAL SUPPORT SERVICES 22,181.20 02763 5,906.25FY20/21 IT PROFESSIONAL SUPPORT SERVICES10407 02763 2,800.00FY20/21 IT PROFESSIONAL SUPPORT SERVICES10473 02763 11,637.50FY20/21 IT PROFESSIONAL SUPPORT SERVICES10629 2Page: Item Title:10.2 Warrant Register Item Page Number:40 Menifee Mayor and City Council January 20,2021 Page 94 of 828 12/30/2020 Voucher List City of Menifee 3 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47533 12/31/2020 (Continued)01291 HELIXSTORM 02763 24,217.50DEC'20 IT PROFESSIONAL SUPPORT SERVICES10778 Total : 66,742.45 47534 12/31/2020 01461 IK CONSULTING, LLC IK-MENIFEE1120 01656 ACCELA CONFIGURATION CONSULTING SERVICES 6,986.25 Total : 6,986.25 47535 12/31/2020 01857 KC GRAPHICS 41663 PRINTING SVCS FOR PD 277.31 214.78PRINTING SVCS FOR CODE41664 Total : 492.09 47536 12/31/2020 01986 LASER TECHNOLOGY, INC 178275 RI 02810 LASER SPEED DETECTOR 3,246.19 Total : 3,246.19 47537 12/31/2020 01031 MENIFEE VALLEY TAEKWONDO ACADE CK REQ 12/16 COMM SVCS INSTRUCTOR PAYMENT 153.30 Total : 153.30 47538 12/31/2020 00892 MSA SYSTEMS, INC.SGX15822 02841 MENIFEE PD ZEBRA BLUETOOTH PRINTERS 15,213.48 Total : 15,213.48 47539 12/31/2020 01968 NETMOTION SOFTWARE, INC.I0055640 02939 NETMOTION CERTIFICATION TRAINING - IT TE 2,754.00 Total : 2,754.00 47540 12/31/2020 01761 P.L. PERRIN & ASSOCIATES 20-19 02270 PD POLYGRAPH SVCS 500.00 Total : 500.00 47541 12/31/2020 01970 PACIFIC COAST STITCH LLC 1254 MENIFEE POLICE UNIFORMS 1,986.86 Total : 1,986.86 47542 12/31/2020 00822 PCR SERVICES CORPORATION 158571 02611 ESA-SEPT'20 ON CALL PLANNING SERVICES 2,380.00 Total : 2,380.00 47543 12/31/2020 01497 QUINN RENTAL SERVICES 16373901 P/W EQUIPMENT RENTAL 799.59 Total : 799.59 47544 12/31/2020 01212 R.J. NOBLE COMPANY 184766 P/W MATERIALS & SUPPLIES 150.62 Total : 150.62 3Page: Item Title:10.2 Warrant Register Item Page Number:41 Menifee Mayor and City Council January 20,2021 Page 95 of 828 12/30/2020 Voucher List City of Menifee 4 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47545 12/31/2020 01974 RHINO STEEL BUILDING, SYSTEMS, INC.I2020997-1 02773 CIP 16-13 PW MOC MODULAR BUILDING 14,208.19 Total : 14,208.19 47546 12/31/2020 00962 RUTAN & TUCKER, LLP 878226 AUG'20 CITY LEGAL SVCS 35,220.51 17,824.00SEP'20 CITY LEGAL SVCS881045 21,301.50OCT'20 CITY LEGAL SVCS883378 4,911.00OCT'20 CITY LEGAL SVCS883379 4,329.00OCT'20 CITY LEGAL SVCS883380 358.50OCT'20 CITY LEGAL SVCS883390 1,000.16OCT'20 CITY LEGAL SVCS883391 148.50OCT'20 CITY LEGAL SVCS883392 9,926.50NOV'20 CITY LEGAL SVCS883762 198.00NOV'20 CITY LEGAL SVCS883770 370.50NOV'20 CITY LEGAL SVCS883792 1,228.50NOV'20 CITY LEGAL SVCS883793 Total : 96,816.67 47547 12/31/2020 01318 SEARLE CREATIVE GROUP LLC 20414-PD MARKETING FOR MENIFEE PD DEPT 124.97 Total : 124.97 47548 12/31/2020 00484 SELECT STAFFING 8406014350 TEMP EMP SVCS PE 11/15/20 2,916.76 4,792.27TEMP EMP SVCS PE 11/22/208406039243 2,856.09TEMP EMP SVCS PE 11/29/208406061694 4,747.83TEMP EMP SVCS PE 12/06/208406088243 4,747.84TEMP EMP SVCS PE 12/13/208406113557 Total : 20,060.79 47549 12/31/2020 01845 SPEAKWRITE LLC 911F7098 02569 MENIFEE PD AS NEEDED DICTATION SERVICES 1,455.08 Total : 1,455.08 47550 12/31/2020 01236 SPICER CONSULTING GROUP LLC 0724 02629 RECOVERABLE CFD ANNEXATION SERVICES 5,000.00 02629 3,750.00RECOVERABLE CFD ANNEXATION SERVICES0725 Total : 8,750.00 47551 12/31/2020 01283 STB CONSULTING INC SB-32 02631 SEPT-NOV'20 ON-CALL RECOVERABLE ENGINEER 13,342.00 Total : 13,342.00 47552 12/31/2020 01228 SUN LIFE FINANCIAL 935452 -DEC'20 DEC'20 INSURANCE PREMIUMS 26,227.36 4Page: Item Title:10.2 Warrant Register Item Page Number:42 Menifee Mayor and City Council January 20,2021 Page 96 of 828 12/30/2020 Voucher List City of Menifee 5 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47552 12/31/2020 (Continued)01228 SUN LIFE FINANCIAL 25,627.71JAN'21 INSURANCE PREMIUMS935452 -JAN'21 Total : 51,855.07 47553 12/31/2020 01895 THE COUNSELING TEAM, INTERNATIONAL 77854 02824 MENIFEE PD: BEHAVIORAL HEALTH AND WELLNE 1,000.00 Total : 1,000.00 47554 12/31/2020 01627 TRANSPARENT WINDOW FILMS 1596 MENIFEE POLICE HQ TINT INSTALL 175.00 Total : 175.00 47555 12/31/2020 00741 U.S. BANK CORP. PYMT. SYSTEM **1632 City Credit Card Charges 630.40 573.61City Credit Card Charges**1632 1,054.85City Credit Card Charges**1632 490.00City Credit Card Charges**1632 625.97City Credit Card Charges**1632 535.00City Credit Card Charges**1632 216.74City Credit Card Charges**1678 527.80City Credit Card Charges**1678 516.00City Credit Card Charges**1678 730.48City Credit Card Charges**1678 1,607.53City Credit Card Charges**1678 399.00City Credit Card Charges**1678 437.49City Credit Card Charges**1678 465.60City Credit Card Charges**1678 454.37City Credit Card Charges**2472 469.08City Credit Card Charges**5047 1,328.70City Credit Card Charges**5047 281.16City Credit Card Charges**5047 1,030.88City Credit Card Charges**9261 434.09City Credit Card Charges**9261 471.42City Credit Card Charges**9261 514.02City Credit Card Charges**9739 490.00City Credit Card Charges**9739 513.00City Credit Card Charges**9739 1,862.46City Credit Card Charges**9739 939.06City Credit Card Charges**9739 293.89City Credit Card Charges**9739 5Page: Item Title:10.2 Warrant Register Item Page Number:43 Menifee Mayor and City Council January 20,2021 Page 97 of 828 12/30/2020 Voucher List City of Menifee 6 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47555 12/31/2020 (Continued)00741 U.S. BANK CORP. PYMT. SYSTEM 526.58City Credit Card Charges**9739 420.00City Credit Card Charges**9739 441.60City Credit Card Charges**9739 420.00City Credit Card Charges**9739 707.65City Credit Card Charges**9739 227.70City Credit Card Charges**9911 411.00City Credit Card Charges**9911 696.45City Credit Card Charges**9911 742.92City Credit Card Charges**9911 Total : 22,486.50 47556 12/31/2020 00741 U.S. BANK CORP. PYMT. SYSTEM **0278 City Credit Card Charges 51.23 45.96City Credit Card Charges**0278 94.88City Credit Card Charges**0278 60.67City Credit Card Charges**0278 200.00City Credit Card Charges**1016 200.00City Credit Card Charges**1016 50.00City Credit Card Charges**1632 31.30City Credit Card Charges**1632 74.91City Credit Card Charges**1632 83.15City Credit Card Charges**1632 200.00City Credit Card Charges**1632 50.00City Credit Card Charges**2472 213.63City Credit Card Charges**2472 145.00City Credit Card Charges**5047 75.40City Credit Card Charges**5047 134.83City Credit Card Charges**5047 52.20City Credit Card Charges**5047 85.19City Credit Card Charges**5047 175.40City Credit Card Charges**5047 47.45City Credit Card Charges**5047 33.44City Credit Card Charges**5047 109.87City Credit Card Charges**5047 67.49City Credit Card Charges**7121 33.00City Credit Card Charges**7121 42.00City Credit Card Charges**7121 6Page: Item Title:10.2 Warrant Register Item Page Number:44 Menifee Mayor and City Council January 20,2021 Page 98 of 828 12/30/2020 Voucher List City of Menifee 7 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47556 12/31/2020 (Continued)00741 U.S. BANK CORP. PYMT. SYSTEM 210.00City Credit Card Charges**9261 33.79City Credit Card Charges**9739 102.58City Credit Card Charges**9739 148.13City Credit Card Charges**9911 23.97City Credit Card Charges**9911 71.64City Credit Card Charges**9911 45.00City Credit Card Charges**9911 52.19City Credit Card Charges**9911 101.43City Credit Card Charges**9962 141.09City Credit Card Charges**9962 185.70City Credit Card Charges**9962 Total : 3,472.52 47557 12/31/2020 00741 U.S. BANK CORP. PYMT. SYSTEM **1016 City Credit Card Charges 0.99 20.00City Credit Card Charges**1632 18.40City Credit Card Charges**1678 14.72City Credit Card Charges**5047 6.57City Credit Card Charges**9261 23.91City Credit Card Charges**9261 Total : 84.59 47558 12/31/2020 01401 VERIZON WIRELESS INV21220020 SEPT'20 VEHICLE GPS SERVICE 948.00 Total : 948.00 47559 12/31/2020 01198 WHITE HOUSE SANITATION 0000842834 DEC'20 LAZY CREEK PORTABLE RESTROOM SVCS 201.77 161.28DEC'20 LYLE MARSH PORTABLE RESTROOM SVCS0000842835 Total : 363.05 47560 12/31/2020 02016 5 STAR NAILS CK REQ 12/26 02941 CARES SMALL BUSINESS GRANT (5 STAR NAILS 5,000.00 Total : 5,000.00 47561 12/31/2020 00555 ADAME LANDSCAPING, INC.85953 02580 NOV'20 ROW LANDSCAPE MAINTENANCE SVCS 28,680.40 02580 Total : 28,680.40 47562 12/31/2020 01812 ADAMSON POLICE PRODUCTS INV333506 02584 MENIFEE PD CROWD CONTROL GEAR PROTECTION 1,832.52 7Page: Item Title:10.2 Warrant Register Item Page Number:45 Menifee Mayor and City Council January 20,2021 Page 99 of 828 12/30/2020 Voucher List City of Menifee 8 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 1,832.52 47562 12/31/2020 01812 01812 ADAMSON POLICE PRODUCTS 47563 12/31/2020 01795 AIR & HOSE SOURCE, INC 405889 P/W EQUIPMENT MAINTENANCE 122.98 Total : 122.98 47564 12/31/2020 01976 ALANS WHEELS LLC 18661 02823 MENIFEE PD VEHICLE MAINTENANCE 1,049.00 Total : 1,049.00 47565 12/31/2020 01334 ALL STAR ELITE SPORTS 2303 COMM SVCS UNIFORMS/ SHIRTS FOR MIGHT ME 1,067.09 Total : 1,067.09 47566 12/31/2020 00744 ALLIED TRAFFIC & EQUIP. RENTAL 81841 P/W SIGN MAINT & REPLACEMENT 788.44 92.44P/W SIGN MAINT & REPLACEMENT81842 429.56P/W SIGN MAINT & REPLACEMENT81865 Total : 1,310.44 47567 12/31/2020 01350 AMERIGAS PROPANE L.P.3115111559 FIRESTATION #5 PROPANE SVCS 813.95 Total : 813.95 47568 12/31/2020 01948 APPLEONE EMPLOYMENT SERVICES 01-5712594 CITY CLERK TEMP EMP SVCS PE 10/17/20 885.76 664.32CITY CLERK TEMP EMP SVCS PE 12/05/2001-574725 Total : 1,550.08 47569 12/31/2020 02039 BATTERY JUNCTION 1671882 MENIFEE PD BATTERIES 543.75 Total : 543.75 47570 12/31/2020 01746 BAY AREA DRIVING SCHOOL, INC CK REQ 11/10 COMM SVCS INSTRUCTOR PAYMENT 115.50 Total : 115.50 47571 12/31/2020 00259 BIO-TOX LABORATORIES INC 40485 02641 NOV'20 PD BLOOD ALCOHOL ANALYSIS 325.00 02641 399.00NOV'20 PD BLOOD ALCOHOL ANALYSIS40568 Total : 724.00 47572 12/31/2020 02044 BLAKE'S AUTO REPAIR CK REQ 12/26 02943 CARES SMALL BUSINESS GRANT (BLAKE AUTO R 5,000.00 Total : 5,000.00 47573 12/31/2020 01935 BLITZER'S PREMIUM FROZEN, YOGURT CK REQ 12/26 02944 MENIFEE CARES SMALL BUSINESS GRANT (BLIT 5,000.00 8Page: Item Title:10.2 Warrant Register Item Page Number:46 Menifee Mayor and City Council January 20,2021 Page 100 of 828 12/30/2020 Voucher List City of Menifee 9 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 5,000.00 47573 12/31/2020 01935 01935 BLITZER'S PREMIUM FROZEN, YOGURT 47574 12/31/2020 02054 BREAKFAST HOUSE LOS TEJABANES CK REQ 12/26 02945 CARES SMALL BUSINESS GRANT (BREAKFAST HO 5,000.00 Total : 5,000.00 47575 12/31/2020 01611 CALIFORNIA POLICE CHIEFS ASSOC 17399 ROLE OF LAW ENFORCEMENT CONFERENCE REGIS 650.00 Total : 650.00 47576 12/31/2020 01818 CALLYO R14044 02544 FY20/21 MOBILE INVESTIGATIVE SOFTWARE AN 424.00 Total : 424.00 47577 12/31/2020 02048 CARAHSOFT TECHNOLOGY, CORPORATION IN890663 02932 BUDGETING AND PLANNING PROF SVCS 140,915.00 Total : 140,915.00 47578 12/31/2020 02052 CARMONA, CHRISTOPHER CK REQ 11/24 PER DIEM FOR WEAPON TRAINING 89.00 Total : 89.00 47579 12/31/2020 00104 CITY CLERKS ASSOC OF CALIF.8982 CCAC MEMBERSHIP 70.00 Total : 70.00 47580 12/31/2020 00680 COUNTY OF RIVERSIDE, LIBRARY DIVISION 2021-07 MENIFEE LIBRARY REIMB JUL-SEP'20 4,760.51 Total : 4,760.51 47581 12/31/2020 00979 COUNTY OF SAN BERNARDINO, SHERIFF/CORONER DEPT.AO-19113028 MENIFEE PD TRAINING 215.00 Total : 215.00 47582 12/31/2020 02040 CREATIVE SERVICES OF, NEW ENGLAND D20-24945 CS JUNIOR PARK RANGER BADGE STICKERS 184.95 Total : 184.95 47583 12/31/2020 01052 CRIME SCENE STERI-CLEAN LLC 41489 PD CRIME SCENE CLEAN UP SVCS 750.00 Total : 750.00 47584 12/31/2020 02010 DIANA'S DANCE COMPANY CK REQ 12/26 02946 CARES SMALL BUSINESS GRANT (DIANA'S DANC 5,000.00 Total : 5,000.00 47585 12/31/2020 02045 DROPBOX, INC.TRFF7HT2MXLG ECON DEV DROPBOX PLUS SOFTWARE 119.88 Total : 119.88 47586 12/31/2020 01772 DUNN-EDWARDS CORPORATION 2191014709 GRAFITTI ABATEMENT SUPPLIES 255.74 9Page: Item Title:10.2 Warrant Register Item Page Number:47 Menifee Mayor and City Council January 20,2021 Page 101 of 828 12/30/2020 Voucher List City of Menifee 10 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 255.74 47586 12/31/2020 01772 01772 DUNN-EDWARDS CORPORATION 47587 12/31/2020 00161 EASTERN MUNICIPAL WATER DIST.152572-03 12/3 NOV'20 LLMD ZONE 3 WATER SVCS 1,268.00 944.21NOV'20 LLMD ZONE 3 WATER SVCS173168-03 12/3 546.97NOV'20 LLMD ZONE 3 WATER SVCS181069-03 12/3 920.07NOV'20 CSA 145 WATER SVCS181979-03 12/3 594.33NOV'20 CSA 145 WATER SVCS204615-02 12/3 883.47NOV'20 CSA 145 WATER SVCS204616-02 12/3 451.83NOV'20 LLMD ZONE 3 WATER SVCS210877-03 12/3 364.08NOV'20 LLMD ZONE 3 WATER SVCS217316-03 12/4 748.90NOV'20 LLMD ZONE 3 WATER SVCS218620-03 12/4 1,053.24NOV'20 LLMD ZONE 69 WATER SVCS225995-03 12/4 875.96NOV'20 LLMD ZONE 69 WATER SVCS225996-03 12/4 356.30NOV'20 CSA 145 WATER SVCS226312-03 12/4 364.77NOV'20 CSA 145 WATER SVCS229625-03 12/4 742.98NOV'20 LLMD ZONE 77 WATER SVCS230227-03 12/4 1,147.63OCT'20 LLMD ZONE 77 WATER SVCS230227-03 12/4 693.48NOV'20 LLMD ZONE 81 WATER SVCS233542-03 12/4 762.69NOV'20 AMR ROW WATER SVCS236610-02 12/4 348.42NOV'20 AMR ROW WATER SVCS238693-02 12/4 961.12OCT'20 AMR ROW WATER SVCS238693-02 12/4 1,022.22NOV'20 LLMD ZONE 3 WATER SVCS239165-02 12/4 2,319.75NOV'20 AMR ROW WATER SVCS240232-02 12/4 551.16NOV'20 LLMD ZONE 82 WATER SVCS240567-02 12/4 368.42NOV'20 FIRE STATION #7 WATER SVC241469-01 12/3 389.57NOV'20 CITY HALL WATER SVCS246366-02 12/3 651.84NOV'20 CENTENNIAL PARK IRRIGATION WATER252059-02 11/20 332.35NOV'20 CSA 145 WATER SVCS35053-03 12/3 1,025.74NOV'20 CSA 145 WATER SVCS35123-04 12/3 338.63NOV'20 LLMD ZONE 3 WATER SVCS71416-03 12/3 872.37OCT'20 LLMD ZONE 3 WATER SVCS71998-03 11/6 285.20NOV'20 WATER SVC SENIOR CENTER81456-03 12/3 290.22OCT'20 CSA 33 WATER SVCS8792-03 12/7 385.71NOV'20 CSA 33 WATER SVCS8792-03 12/7 342.36NOV'20 LLMD ZONE 3 WATER SVCS92817-02 12/3 698.80NOV'20 LLMD ZONE 3 WATER SVCS94084-03 12/4 2,358.24NOV'20 CSA 145 WATER SVCS95843-03 12/4 10Page: Item Title:10.2 Warrant Register Item Page Number:48 Menifee Mayor and City Council January 20,2021 Page 102 of 828 12/30/2020 Voucher List City of Menifee 11 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47587 12/31/2020 (Continued)00161 EASTERN MUNICIPAL WATER DIST. 334.47NOV'20 LLMD ZONE 3 WATER SVCS96356-03 12/4 Total : 26,595.50 47588 12/31/2020 00161 EASTERN MUNICIPAL WATER DIST.100351-02 12/7 NOV'20 FIRE STATION #76 WATER SVCS 136.52 40.92NOV'20 LLMD ZONE 3 WATER SVCS101279-03 12/3 109.34NOV'20 FIRESTATION #76 WATER SVCS101330-02 12/7 29.87NOV'20 FIRE STATION #76 WATER SVCS106931-02 12/7 52.01NOV'20 LLMD ZONE 3 WATER SVCS155944-03 12/4 22.62NOV'20 CSA 145 WATER SVCS169064-03 12/3 110.57NOV'20 LLMD ZONE 3 WATER SVCS181980-03 12/3 62.69NOV'20 CSA 145 WATER SVCS204614-02 12/3 50.61NOV'20 SPIRIT PARK RESTROOM WATER SVC225656-03 12/3 218.11NOV'20 POLICE HEADQUARTERS WATER SVC231916-02 12/3 205.98NOV'20 POLICE HEADQUARTERS WATER SVCS231917-03 12/4 175.89NOV'20 AMR SPORTS PARK WATER SVCS236607-02 12/4 46.03NOV'20 LLMD ZONE 167 WATER SVCS246084-02 12/7 52.83NOV'20 CSA 145 WATER SVCS246112-02 12/8 53.03NOV'20 AMR SILVERSTAR PARK WATER SVCS246407-02 12/3 99.02NOV'20 HIDDEN HILLS PARK RESTROOM WATER247007-02 12/4 57.60NOV'20 CENTRAL PARK WATER SVCS250203-02 12/4 58.31NOV'20 CENTENNIAL PARK WATER SVCS250719-02 12/4 97.98NOV'20 CFD 2015-2 ANNEXATION 34 ZONE 34250899-02 12/4 81.66NOV'20 POLICE HEADQUARTERS WATER SVC254376-01 12/3 153.01NOV'20 WATER SVC NORTH ANNEX BLDG32539-21 12/3 141.08NOV'20 LLMD ZONE 3 WATER SVCS71417-03 12/3 280.94NOV'20 LLMD ZONE 3 WATER SVCS71998-03 12/7 53.72NOV'20 FIRE STATION #68 WATER SVCS73422-02 12/4 27.62NOV'20 LLMD ZONE 3 WATER SVCS79852-03 12/7 38.57NOV'20 WATER SVC ANNEX BLDG81822-03 12/3 172.63NOV'20 LLMD ZONE 3 WATER SVCS83877-03 12/3 243.74NOV'20 LLMD ZONE 3 WATER SVCS85623-04 12/3 107.55NOV'20 RANCHO RAMONA PARK WATER SVCS8913-02 12/7 99.90OCT'20 CSA 33 WATER SVCS8914-03 11/10 96.57NOV'20 CSA 33 WATER SVCS8914-03 12/8 119.84NOV'20 LLMD ZONE 3 WATER SVCS94440-03 12/3 81.71NOV'20 CSA 145 WATER SVCS94633-02 12/3 11Page: Item Title:10.2 Warrant Register Item Page Number:49 Menifee Mayor and City Council January 20,2021 Page 103 of 828 12/30/2020 Voucher List City of Menifee 12 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47588 12/31/2020 (Continued)00161 EASTERN MUNICIPAL WATER DIST. 152.17NOV'20 LLMD ZONE 3 WATER SVCS95841-03 12/3 109.97NOV'20 LLMD ZONE 3 WATER SVCS95842-03 12/3 180.33NOV'20 LLMD ZONE 3 WATER SVCS99479-03 12/4 Total : 3,820.94 47589 12/31/2020 00161 EASTERN MUNICIPAL WATER DIST.100891-03 12/8 NOV'20 CSA 145 WATER SVCS 16.53 22.62NOV'20 LLMD ZONE 3 WATER SVCS152855-03 12/4 21.17NOV'20 WATER SVC NORTH ANNEX232844-02 12/3 16.53NOV'20 HIDDEN HILLS PARK IRRIGATION SVCS247009-02 12/8 20.44NOV'20 FIRE STATION #68 WATER SVCS73433-02 12/4 Total : 97.29 47590 12/31/2020 01981 ECO BEAR 2516 COVID-19 CLEANING SVCS 100.00 Total : 100.00 47591 12/31/2020 01928 EFAX CORPORATE 3082142 DEC'20 PD VIRUTAL FAX LINES FOR TRAINING 129.50 Total : 129.50 47592 12/31/2020 01696 ELECNOR BELCO ELECTRIC, INC 03 02388 NOV'20 CIP 16-07 CITY WIDE TRAFFIC SIGNA 181,943.37 Total : 181,943.37 47593 12/31/2020 02053 ESSENCE AMOUR BEAUTY SUPPLY CK REQ 12/26 02947 CARES SMALL BUSINESS GRANT (ESSENCE AMOU 5,000.00 Total : 5,000.00 47594 12/31/2020 00024 FEDEX 7-093-85679 AUG'20 EXPRESS DELIVERY SVCS 61.58 Total : 61.58 47595 12/31/2020 02037 FIRE SMART PROMOTIONS 110737 COMM SVCS TROOPER HATS 281.88 Total : 281.88 47596 12/31/2020 01142 FRONTIER CALIFORNIA INC.209-188-1265 11/24 DEC'20 CITY HALL FIOS & PHONE LINES 1,914.57 370.98DEC'20 MENIFEE PD FIOS SVCS323-160-9666 12/7 130.98DEC'20 FIRESTATION #7 FIOS SVCS951-679-0060 12/7 428.91DEC'20 PW YARD FIOS SVCS951-679-2323 12/6 182.32DEC'20 ALARM CITY HALL951-679-3592 12/04 Total : 3,027.76 12Page: Item Title:10.2 Warrant Register Item Page Number:50 Menifee Mayor and City Council January 20,2021 Page 104 of 828 12/30/2020 Voucher List City of Menifee 13 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47597 12/31/2020 02022 GALLANT MEDICAL SUPPLY, INC CK REQ 12/26 02948 CARES SMALL BUSINESS GRANT (GALLANT MEDI 5,000.00 Total : 5,000.00 47598 12/31/2020 00278 GALLS, LLC BC1244842 PARK RANGER UNIFORMS 471.96 Total : 471.96 47599 12/31/2020 02035 GERBER COLLISION & GLASS 1901211489 02925 PD VEHICLE MAINTENANCE (VEH#20-31) 3,557.12 Total : 3,557.12 47600 12/31/2020 00139 GHA TECHNOLOGIES INC 101094373 02781 COVID-19 MICROSOFT LAPTOPS PHASE I 17,908.50 02928 430.65COVID-19 MICROSOFT LAPTOPS (FIRE DEPARTM101094847 Total : 18,339.15 47601 12/31/2020 00908 GOSCH AUTO GROUP 1022777 PD VEHICLE MAINTENANCE (VEH#20-27) 408.38 30.73PD VEHICLE MAINTENANCE (VEH#20-27)1022842 77.79P/W VEHICLE MAINTENANCE (VEH#205)1024365 43.45PD VEHICLE MAINTENANCE (VEH#305)2064309 Total : 560.35 47602 12/31/2020 00351 GOVERNMENT FINANCE, OFFICERS ASSOCIATION4604 CAFR AWARD SUBMITTAL FY2020 610.00 Total : 610.00 47603 12/31/2020 01944 GRACIE'S LUNCHBOX CK REQ 12/26 02949 CARES SMALL BUSINESS GRANT (GRACIES LUNC 5,000.00 Total : 5,000.00 47604 12/31/2020 00921 HD SUPPLY CONSTRUCTION SUPPLY 50014615500 COMM SVCS FACILITY MAINTENANCE 130.44 Total : 130.44 47605 12/31/2020 01952 HEAVEN SCENT FLOWERS CK REQ 12/26 02950 CARES SMALL BUSINESS GRANT (HEAVEN SCENT 5,000.00 Total : 5,000.00 47606 12/31/2020 01734 HOME DEPOT CREDIT SERVICES 7141 12/13 SUPPLIES 1,910.23 Total : 1,910.23 47607 12/31/2020 01969 IE RISING STARS BASKETBALL, ACADEMY CK REQ 12/22 COMM SVCS INSTRUCTOR PAYMENT 26.25 Total : 26.25 47608 12/31/2020 01043 IMPERIAL SPRINKLER SUPPLY 4445129-00 IRRIGATION SUPPLIES FOR TRAIL ENHANCEMEN 262.82 13Page: Item Title:10.2 Warrant Register Item Page Number:51 Menifee Mayor and City Council January 20,2021 Page 105 of 828 12/30/2020 Voucher List City of Menifee 14 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47608 12/31/2020 (Continued)01043 IMPERIAL SPRINKLER SUPPLY 90.51SPIRIT PARK IRRIGATION SUPPLIES4448079-00 Total : 353.33 47609 12/31/2020 02058 J'S BARBERSHOP CK REQ 12/26 02951 CARES SMALL BUSINESS GRANT (J'S BARBERSH 5,000.00 Total : 5,000.00 47610 12/31/2020 01745 KITTRICH CORPORATION 12/3/2020 CUSTOM CANOPY AND TABLE COVER FOR YOUTH 984.53 Total : 984.53 47611 12/31/2020 01743 L.N. CURTIS & SONS INV444749 02929 MENIFEE PD FIRST RESPONDER KITS 5,165.63 Total : 5,165.63 47612 12/31/2020 01342 LA SIERRA FIRE EQUIPMENT INC 55161RR ANNUAL FIRE EXTINGUISHER SVCS 495.00 Total : 495.00 47613 12/31/2020 02059 LCL RPM CK REQ 12/26 02952 CARES SMALL BUSINESS GRANT (LCL REALTY/R 5,000.00 Total : 5,000.00 47614 12/31/2020 02007 LOVELY NAILS CK REQ 12/26 02953 CARES SMALL BUSINESS GRANT (LOVELY NAILS 5,000.00 Total : 5,000.00 47615 12/31/2020 00128 LOWES 6081 12/02 SUPPLIES 3,879.38 Total : 3,879.38 47616 12/31/2020 02060 LUCKY STAR NAILS AND SPA, INC CK REQ 12/26 02954 CARES SMALL BUSINESS GRANT (LUCKY STAR N 5,000.00 Total : 5,000.00 47617 12/31/2020 01937 MENIFEE BEAUTY SUPPLY, & SALON CK REQ 12/26 02955 CARES SMALL BUSINESS GRANT (MENIFEE BEAU 5,000.00 Total : 5,000.00 47618 12/31/2020 01563 MERCHANTS BUILDING MAINTENANCE 609780 02840 NOV'20 COVID-19 DISINFECTING SERVICES 4,928.00 02840 4,592.00DEC'20 COVID-19 DISINFECTING SERVICES609781 Total : 9,520.00 47619 12/31/2020 01963 MERNA'S CAFE & GRILL INC CK REQ 12/26 02957 CARES SMALL BUSINESS GRANT (MERNA'S CAFE 5,000.00 Total : 5,000.00 14Page: Item Title:10.2 Warrant Register Item Page Number:52 Menifee Mayor and City Council January 20,2021 Page 106 of 828 12/30/2020 Voucher List City of Menifee 15 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47620 12/31/2020 00474 KAISER FOUNDATION HEALTH PLAN CK REQ 12/28 REFUND FOR KAISER GRADING BOND 41,000.00 Total : 41,000.00 47621 12/31/2020 00474 SAFE STEP WALK-IN TUB CO CK REQ 12/7 REFUND BLDG PERMIT PMT19-04225 98.24 Total : 98.24 47622 12/31/2020 00474 SKYLAR BROWN/ PHNX POWER CK REQ 12/7 REFUND FOR PMT20-04413 23.31 Total : 23.31 47623 12/31/2020 01605 MOBILE MODULAR MANAGEMENT CORP 300359283 MOBILE MODULAR RENTAL 102.44 Total : 102.44 47624 12/31/2020 02043 MOUNTAIN MIKE'S PIZZA CK REQ 12/26 02958 CARES SMALL BUSINESS GRANT (MOUNTAIN MIK 5,000.00 Total : 5,000.00 47625 12/31/2020 02002 MSM PUBLIC SAFETY 2301 02842 MENIFEE PD NOPTIC CAMERA 3,669.00 Total : 3,669.00 47626 12/31/2020 02065 NEWLOOK CLEANERS CK REQ 12/26 02968 CARES SMALL BUSINESS GRANT (NEW LOOK CLE 5,000.00 Total : 5,000.00 47627 12/31/2020 02025 NUTRISHOP MENIFEE CK REQ 12/26 02959 CARES SMALL BUSINESS GRANT (NUTRISHOP) 5,000.00 Total : 5,000.00 47628 12/31/2020 01130 O'REILLY AUTO PARTS 4746-154197 COMM SVCS EQUIPMENT MAINTENANCE -18.00 128.36P/W VEHICLE MAINTENANCE (VEH#209)4746-163378 20.67P/W VEHICLE MAINTENANCE4746-163379 350.14PD VEHICLE MAINTENANCE (VEH#20-16)4746-163673 67.27P/W VEHICLE MAINTENANCE4746-165626 Total : 548.44 47629 12/31/2020 01674 PACIFIC ALARM SERVICE J-701002725 02635 CIP 19-18 PD HQ CONTROL ACCESS IMPROVEM 18,579.98 02635 4,121.40CIP19-09 PD HQ CONTROL ACCESS IMPROVEMENJ-701002727 Total : 22,701.38 47630 12/31/2020 01096 PAPER RECYCLING & SHREDDING, SPECIALISTS INC.474780 POLICE DOC SHREDDING SVCS 95.00 Total : 95.00 15Page: Item Title:10.2 Warrant Register Item Page Number:53 Menifee Mayor and City Council January 20,2021 Page 107 of 828 12/30/2020 Voucher List City of Menifee 16 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47631 12/31/2020 01843 PARKHOUSE TIRE, INC 2010715509 FLEET PROFESSIONAL SVCS 231.00 Total : 231.00 47632 12/31/2020 01823 PEACEKEEPER PRODUCTS, INTERNATIONAL 20-12135 BATONS FOR MENIFEE PD 1,196.88 Total : 1,196.88 47633 12/31/2020 02020 PETE'S MUSIC CK REQ 12/26 02960 CARES SMALL BUSINESS GRANT (PETE'S MUSIC 5,000.00 Total : 5,000.00 47634 12/31/2020 01942 PHYSICAL THERAPY OF MENIFEE CK REQ 12/26 02961 CARES SMALL BUSINESS GRANT (PHYSICAL THE 5,000.00 Total : 5,000.00 47635 12/31/2020 02050 PIT STOP PUB CK REQ 12/08 SENIOR LUNCH PROGRAM 837.38 837.38COIVD-19 SENIOR LUNCHESCK REQ 12/23 Total : 1,674.76 47636 12/31/2020 02019 PREMIER URGENT CARE, PREMIER FAMILY CARECK REQ 12/26 02962 CARES SMALL BUSINESS GRANT (PREMIER FAMI 5,000.00 Total : 5,000.00 47637 12/31/2020 01739 PROFORCE LAW ENFORCEMENT 431658 MENIFEE PD WEAPONS PURCHASE 572.62 Total : 572.62 47638 12/31/2020 02063 PROVECHO MEX INC CK REQ 12/26 02969 CARES SMALL BUSINESS GRANT (PROVECHO) 5,000.00 Total : 5,000.00 47639 12/31/2020 01065 PRUDENTIAL OVERALL SUPPLY 23080842 COMM SVCS UNIFORM LAUNDRY SVCS 53.86 333.30COMM SVCS UNIFORM LAUNDRY SVCS23083958 127.18P/W UNIFORM LAUNDRY SVCS23087033 Total : 514.34 47640 12/31/2020 00006 R&R BUSINESS SOLUTIONS 8550 PRINTING SVCS 42.96 89.37PRINTING SVCS8551 761.25PRINTING SVCS8552 Total : 893.58 47641 12/31/2020 00013 READYREFRESH 00K0036688976 CITY HALL BOTTLE WATER SUPPLY 174.00 Total : 174.00 16Page: Item Title:10.2 Warrant Register Item Page Number:54 Menifee Mayor and City Council January 20,2021 Page 108 of 828 12/30/2020 Voucher List City of Menifee 17 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47642 12/31/2020 01931 RIVERSIDE COMMUNITY COLLEGE, DISTRICT 2021/397 MENIFEE PD EDUCATION COURSE 368.00 Total : 368.00 47643 12/31/2020 00359 RIVERSIDE COUNTY, RECORDER JUL'20 CODE ENF RELEASES 20.00 193.00PROJECT RECORDINGSJUL'20 -1 272.00CODE ENF RELEASESJUN'20 68.00CODE ENF RELEASESOCT'20 80.00CODE ENF RELEASESSEPT'20 Total : 633.00 47644 12/31/2020 01816 SAFEANDVAULTSTORE.COM LLC 00007773 PD WEAPON CABINET WITH BINS 1,099.00 Total : 1,099.00 47645 12/31/2020 01453 SIGNS BY TOMORROW 25913 PUBLIC HEARING SIGNS 240.19 Total : 240.19 47646 12/31/2020 01874 SIRCHIE 0471538-IN PD MATERIALS & SUPPLIES 137.03 Total : 137.03 47647 12/31/2020 02046 SKYLAR CK REQ 12/26 02963 CARES SMALL BUSINESS GRANT (SKYLAR-CREAM 5,000.00 Total : 5,000.00 47648 12/31/2020 00046 SOUTHERN CALIFORNIA EDISON 2-31-766-9422 11/7 OCT'20 CSA 86 STREET LIGHT SVCS 912.33 86.56NOV'20 MENIFEE RD TC-1 SIGNAL SVCS2-31-923-1015 12/5 140.53NOV'20 NEWPORT RD/ AMR CFD 2012-1 SGNL S2-34-392-5475 11/23 776.23NOV'20 LLMD SIGNAL SVCS2-35-194-1992 12/4 3,200.23NOV'20 AMR SPORTS PARK ELECTRIC SVCS2-36-880-4548 11/24 85.87NOV'20 MCCALL TC-1 SIGNAL SVCS2-37-489-6173 12/9 80.85NOV'20 CSA 145 IRRIGATIN SVCS2-40-839-8204 12/5 85.29NOV'20 LLMD ZONE 167 SIGNAL SVCS2-40-993-9402 12/8 56.67NOV'20 LLMD ZONE 167 SAFETY LIGHT SVCS2-40-994-7868 12/8 3,190.79OCT'20 CITY HALL ELECTRIC SVCS2-41-512-4585 11/25 118.24OCT'20 CFD 2012-1 AMR STREET LIGHT SVCS2-41-777-6713 11/3 118.24NOV'20 CFD 2012-1 AMR STREETLIGHT SVCS2-41-777-6713 12.2 466.53NOV'20 CENTRAL PARK ELECTRIC SVCS2-42-593-7505 11/24 126,178.33NOV'20 ELECTRIC SVCS FOR VARIOUS LOCATIO2-42-783-6465 12/9 Total : 135,496.69 17Page: Item Title:10.2 Warrant Register Item Page Number:55 Menifee Mayor and City Council January 20,2021 Page 109 of 828 12/30/2020 Voucher List City of Menifee 18 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47649 12/31/2020 01127 SOUTHERN CALIFORNIA MULCH INC.22429 DIF 17 PARK LANDSCAPE MAINTENANCE 913.50 Total : 913.50 47650 12/31/2020 00045 STAPLES 6041 11/15 OFFICE SUPPLIES 914.84 Total : 914.84 47651 12/31/2020 01010 STC TRAFFIC, INC.4382 02153 OCT'20 PROF SVCS FOR CIP 16-08 TRAFFIC S 1,394.26 02738 2,741.00CIP 21-07 MENIFEE/ LA PIEDRA RD TRAFFIC4383 02737 2,324.75OCT'20 CIP 21-10 MURRIETA/ROUSE RD TRAFF4384 02387 13,938.00OCT'20 CIP 16-07 TRAFFIC SIGNAL ENGINEER4385 02634 3,736.75OCT'20 GRANT MANAGEMENT SVCS4386 Total : 24,134.76 47652 12/31/2020 02031 SUBWAY CK REQ 12/23 COVID-19 SENIOR LUNCHES 840.00 Total : 840.00 47653 12/31/2020 01947 SUN CITY BARBER SHOP CK REQ 12/26 02964 MENIFEE CARES SMALL BUSINESS GRANT (SUN 5,000.00 Total : 5,000.00 47654 12/31/2020 02021 SUN CITY FAMILY RESTAURANT CK REQ 12/26 02965 CARES SMALL BUSINESS GRANT (SUN CITY FAM 5,000.00 Total : 5,000.00 47655 12/31/2020 01846 SYSCO RIVERSIDE, INC 220765760 SUPPLIES FOR COVID-19 549.91 Total : 549.91 47656 12/31/2020 01507 TEAM PLUS BULLET LINER & TRUCK 3626 P/W VEHICLE MAINTENANCE (VEH#241) 978.75 Total : 978.75 47657 12/31/2020 01585 THOMSON REUTERS- WEST 842785715 PUBLIC RECORDS INFORMATIONS SVCS 200.09 200.09PUBLIC RECORDS INFORMATIONS SVCS842956257 200.09PUBLIC RECORDS INFORMATIONS SVCS843128710 Total : 600.27 47658 12/31/2020 02062 TIEN TRAN DMD INC CK REQ 12/26 02970 CARES SMALL BUSINESS GRANT (TIEN TRAN) 5,000.00 Total : 5,000.00 47659 12/31/2020 00054 TYLER TECHNOLOGIES, INC, EDEN SYSTEMS DIVISION025-315613 MY CITY APP SUBSCRIPTION 1,157.63 18Page: Item Title:10.2 Warrant Register Item Page Number:56 Menifee Mayor and City Council January 20,2021 Page 110 of 828 12/30/2020 Voucher List City of Menifee 19 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 1,157.63 47659 12/31/2020 00054 00054 TYLER TECHNOLOGIES, INC, EDEN SYSTEMS DIVISION 47660 12/31/2020 02003 UNCHARTED SOFTWARE INC SPG21-050 02867 MENIFEE PD GEOTIME- UNCHARTED SUBSCRIPTI 7,498.00 Total : 7,498.00 47661 12/31/2020 01911 US ARMOR CORPORATION 307728 PD CONCEALABLE VESTS 936.49 Total : 936.49 47662 12/31/2020 00189 VERIZON WIRELESS 9868161580 NOV'20 CITY MOBILE DEVICE CHARGES 4,768.86 Total : 4,768.86 47663 12/31/2020 01887 VISCID DESIGN CO.2585 MENIFEE PD SUPPLIES 337.05 Total : 337.05 47664 12/31/2020 02011 WABA GRILL #011 CK REQ 12/26 02966 CARES SMALL BUSINESS GRANT (WABA GRILL) 5,000.00 Total : 5,000.00 47665 12/31/2020 00787 WAGEWORKS, INC.INV2459340 NOV'20 FSA MONTHLY PREMIUM 603.00 Total : 603.00 47666 12/31/2020 00270 WEST COAST LIGHTS & SIRENS INC 20773 PD VEHICLE MAINTENANCE 367.99 367.99PD VEHICLE MAINTENANCE (VEH#20-31)20781 02466 1,017.73MENIFEE PD GUN RACK INSTALLATION ON VEHI20785 Total : 1,753.71 47667 12/31/2020 01803 WEST TOW 00067284 PD VEHICLE TOWING SVCS 742.50 742.50PD VEHICLE TOWING SVCS00067285 594.10PD VEHICLE TOWING SVCS20-66943 737.10PD VEHICLE TOWING SVCS20-67466 737.10PD VEHICLE TOWING SVCS20-67467 Total : 3,553.30 47668 12/31/2020 01715 WESTERN A/V 14648 02667 FY 20/21 ON-CALL AUDIO VISUAL SYSTEM TEC 1,472.00 Total : 1,472.00 47669 12/31/2020 00298 WEX BANK 69013881 NOV'20 CITY VEHICLE FUEL & MAINT CHARGES 18,475.22 Total : 18,475.22 19Page: Item Title:10.2 Warrant Register Item Page Number:57 Menifee Mayor and City Council January 20,2021 Page 111 of 828 12/30/2020 Voucher List City of Menifee 20 2:22:24PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 47670 12/31/2020 00814 WILLDAN FINANCIAL SERVICES 010-45853 20/21 MANDATORY DISCLOSURE REPORTS 250.00 Total : 250.00 47671 12/31/2020 02018 WOLFEE DONUTS CK REQ 12/26 02967 CARES SMALL BUSINESS GRANT (WOLFEE DONUT 5,000.00 Total : 5,000.00 47672 12/31/2020 00990 ADVANCED EMISSIONS SPECIALISTS CK REQ 12/26 02942 CARES SMALL BUSINESS GRANT (ADVANCED EMI 5,000.00 Total : 5,000.00 47673 12/31/2020 02061 MENIFEE LAKES OPTOMETRY CK REQ 12/26 02956 CARES SMALL BUSINESS GRANT (MENIFEE LAKE 5,000.00 Total : 5,000.00 Bank total : 2,316,628.67 158 Vouchers for bank code :uboc 2,316,628.67Total vouchers :Vouchers in this report 158 20Page: Item Title:10.2 Warrant Register Item Page Number:58 Menifee Mayor and City Council January 20,2021 Page 112 of 828 City of Menifee US Bank Credit Card Detail Nov'20 Last Four of CC Cardholder Date of Transaction Description Description Detail Charge Initiated For: Amount Account Number to be charged **0278 City Card 10/28/2020 City Credit Card Charges Target - Supplies For Interview Panels Human Resources 51.23 100-4222-50428 **0278 City Card 10/30/2020 City Credit Card Charges Panera Bread - Meals For City Engineer Interview Panel Human Resources 45.96 100-4222-50428 **0278 City Card 11/4/2020 City Credit Card Charges Panera Bread - Meals For IT Director Interview Panel Human Resources 60.67 100-4222-50428 **0278 City Card 11/10/2020 City Credit Card Charges Bushfire Kitchen - Meals For City Engineer Interview Panel Human Resources 94.88 100-4222-50428 **7121 City Card 10/30/2020 City Credit Card Charges Bushfire Kitchen - Meals For City Engineer Interview Panel Human Resources 67.49 100-4222-50428 **7121 City Card 11/12/2020 City Credit Card Charges LawDepot.com - Legal Documents For Limited-Term Employment Agreement Human Resources 33.00 100-4222-51600 **7121 City Card 11/17/2020 City Credit Card Charges Bushfire Kitchen - Meals For IT Director Interview Panel Human Resources 42.00 100-4222-50428 **9911 City Card 10/27/2020 City Credit Card Charges Corel - CorelDraw Subsciption License Renewal IT Department 227.70 110-4660-51350 **9911 City Card 10/28/2020 City Credit Card Charges Microsoft - Exchange Online Subscription Plan IT Department 148.13 110-4115-51350 **9911 City Card 11/1/2020 City Credit Card Charges Microsoft - One Drive Submittal License Plan IT Department 30.00 110-4115-51350 **9911 City Card 11/1/2020 City Credit Card Charges Microsoft - Audio Conferencing Licenses IT Department 200.00 110-4115-51350 **9911 City Card 11/1/2020 City Credit Card Charges Microsoft - Audio Conferencing Licenses IT Department 56.00 110-4115-51350 **9911 City Card 11/1/2020 City Credit Card Charges Microsoft - Microsoft Defender Software Subscription IT Department 5.00 110-4115-51350 **9911 City Card 11/1/2020 City Credit Card Charges Microsoft - Domestic Calling Plan IT Department 120.00 110-4115-51350 **9911 City Card 11/10/2020 City Credit Card Charges Network Solutions - Monthly Hosting Fees For MenifeeCares, MenifeeForward & MenifeeConnect IT Department 23.97 110-4350-51350 **9911 City Card 11/12/2020 City Credit Card Charges Lowes - Heavy Duty Gloves For IT Department IT Department 71.64 110-4115-51500 **9911 City Card 11/14/2020 City Credit Card Charges Sling.com - Sling TV Services For City Manager's Office IT Department 45.00 110-4111-51350 **9911 City Card 11/17/2020 City Credit Card Charges Freshworks - Website Monitoring Service Subscription IT Department 432.00 110-4115-51350 **9911 City Card 11/17/2020 City Credit Card Charges Network Solutions - Monthly Hosting For MenifeeBusiness.com IT Department 7.98 110-4350-51350 **9911 City Card 11/17/2020 City Credit Card Charges Network Solutions - Five Years of Hosting For MenifeeBusiness.com IT Department 256.47 110-4350-51350 **9911 City Card 11/19/2020 City Credit Card Charges Best Buy - External Hard Drive For Engineering Department IT Department 52.19 110-4115-53155 **9911 City Card 11/24/2020 City Credit Card Charges Ring Central - Video Meeting Software Non-Departmental 742.92 301-4221-52214 Covid-19 **1678 City Card 10/27/2020 City Credit Card Charges California District Attorney's Association - Narcotics Forfeiture & Professions Ethics Training Various Officers Menifee PD -49.00 100-4911-52211 **1678 City Card 10/28/2020 City Credit Card Charges Riverside County Sheriff - Firearms Tactical Rifle Basic Training T.Dinh T.Dinh 265.74 100-4911-52211 **1678 City Card 10/31/2020 City Credit Card Charges Four Points By Sheraton - Hotel Accomodations For Re-Qualification Course D.Bowen D.Bowen 527.80 100-4911-52210 **1678 City Card 11/3/2020 City Credit Card Charges EventBrite - PAS Operation And Calibration Course A.Morse A.Morse 146.00 100-4911-52211 **1678 City Card 11/3/2020 City Credit Card Charges Riverside County Sheriff - Death Investigation Course A.Morse A.Morse 199.82 100-4911-52211 **1678 City Card 11/3/2020 City Credit Card Charges Riverside County Sheriff - Identity Theft Investigation Training A.Morse A.Morse 91.67 100-4911-52211 **1678 City Card 11/5/2020 City Credit Card Charges Four Points By Sheraton - Hotel Accomodations For Re-Qualification Course D.Bowen D.Bowen 465.60 100-4911-52210 **1678 City Card 11/9/2020 City Credit Card Charges OC Sheriffs Department - Mobile Field Force Training For Various Officers Menifee PD 18.40 100-4911-52211 **1678 City Card 11/10/2020 City Credit Card Charges ProFlowers.com - Sympathy Flowers For C.Carmona C.Carmona 84.56 100-4221-51600 **1678 City Card 11/10/2020 City Credit Card Charges Homewood Suites - Hotel Accomodations For Rifle Course T.Sik T.Sik 181.52 100-4911-52210 **1678 City Card 11/10/2020 City Credit Card Charges Homewood Suites - Hotel Accomodations For Rifle Course T.Sik T.Sik 249.92 100-4911-52210 **1678 City Card 11/12/2020 City Credit Card Charges Skill Path - Communicate With Tact, Professionalism & Diplomacy Course D.Robertson D.Robertson 199.00 100-4911-52210 **1678 City Card 11/12/2020 City Credit Card Charges Riverside County Sheriff - Firearms Tactical Rifle Basic Training T.Thomas T.Thomas 265.74 100-4911-52211 **1678 City Card 11/12/2020 City Credit Card Charges Riverside County Sheriff - Firearms Tactical Rifle Basic Training C.Reveles C.Reveles 265.74 100-4911-52211 **1678 City Card 11/19/2020 City Credit Card Charges EventBrite - Advanced Social Media Training For Various Officers Menifee PD 1357.53 100-4911-52211 **1678 City Card 11/19/2020 City Credit Card Charges Marin Consulting Associates - Leadership And Accountability Training J.Victorio J.Victorio 250.00 100-4911-52211 **1678 City Card 11/23/2020 City Credit Card Charges Full Circle - Standard NIBRS Training T.Sik T.Sik 399.00 100-4911-52211 **1632 City Card 10/26/2020 City Credit Card Charges Sapporo Sushi - Gift Card For Meni-Freewards Restaurant Program Non-Departmental 50.00 301-4221-52214 Covid-19 **1632 City Card 10/31/2020 City Credit Card Charges Fairfield By Marriott - Hotel Accomodations For Building Official Class C.Carlson C.Carlson 630.40 100-4331-52210 **1632 City Card 11/3/2020 City Credit Card Charges DGS Retail - Plexiglass For City Hall Front Counter Non-Departmental 315.97 301-4221-52214 Covid-19 **1632 City Card 11/3/2020 City Credit Card Charges Government Finance Officers Association - Annual GAAP Webinar Registration A.Etienne A.Etienne 180.00 100-4220-52210 **1632 City Card 11/3/2020 City Credit Card Charges California Association Of Public Procurement Officials - CAPPO Membership P.Muratore P.Muratore 130.00 100-4220-52200 **1632 City Card 11/4/2020 City Credit Card Charges Sun City Florist - Sympathy Flowers For J.Brannon J.Brannon 83.15 100-4221-51600 **1632 City Card 11/5/2020 City Credit Card Charges California Association Of Public Procurement Officials - CAPPO Virtual Confernce Registration P.Muratore P.Muratore 299.00 100-4220-52210 Item Title:10.2 Warrant Register Item Page Number:59 Menifee Mayor and City Council January 20,2021 Page 113 of 828 City of Menifee US Bank Credit Card Detail Nov'20 Last Four of CC Cardholder Date of Transaction Description Description Detail Charge Initiated For: Amount Account Number to be charged **1632 City Card 11/5/2020 City Credit Card Charges Statewide Mini Storage - Additional Storage for Community Services Community Services 236.00 100-4660-51600 **1632 City Card 11/6/2020 City Credit Card Charges Murrieta Chamber Of Commerce - Economic Outlook Conference Registration J.Hermosillo J.Hermosillo 20.00 100-4350-52210 **1632 City Card 11/9/2020 City Credit Card Charges Constant Contact - Constant Contact Membership for Economic Development Economic Development 200.00 100-4350-52200 **1632 City Card 11/18/2020 City Credit Card Charges USPS - Shipping Costs For Tiny Tots Program Supplies Community Services 31.30 480-4554-51011 **1632 City Card 11/19/2020 City Credit Card Charges Fun Express - Supplies For Holiday Event Community Services 506.35 100-4660-51700 21-Xmas **1632 City Card 11/19/2020 City Credit Card Charges Fun Express - Supplies For Holiday Event Community Services 67.26 100-4660-51700 21-Xmas **1632 City Card 11/20/2020 City Credit Card Charges Venus Burgers - Gift Card For Meni-Freewards Restaurant Program Non-Departmental 30.00 301-4221-52214 Covid-19 **1632 City Card 11/20/2020 City Credit Card Charges Anypromo Inc. - Supplies For Holiday Event Community Services 1024.85 100-4660-51700 21-Xmas **1632 City Card 11/23/2020 City Credit Card Charges Submarina - Meals For Senior Lunch Program Non-Departmental 490.00 100-4221-52214 Covid-19 **1632 City Card 11/24/2020 City Credit Card Charges Dollar Tree - Supplies For Little Learners Program Community Services 29.91 100-4660-51011 **1632 City Card 11/24/2020 City Credit Card Charges The Toll Roads - Replenish City Fleet FastTrak Account Non-Departmental 45.00 100-4221-51600 **2472 City Card 11/5/2020 City Credit Card Charges Walmart.com - Supplies For Economic Development Department Economic Development 213.63 100-4350-51600 **2472 City Card 11/17/2020 City Credit Card Charges 4Imprint - Supplies For Economic Development Economic Development 454.37 100-4350-51600 **2472 City Card 11/24/2020 City Credit Card Charges Target - Supplies For Economic Development Economic Development 50.00 100-4350-51600 **9962 City Card 11/4/2020 City Credit Card Charges Café Rio - Meals For Staff Working Election City Clerk 78.77 100-4113-52805 **9962 City Card 11/4/2020 City Credit Card Charges Zesty Schawarma - City Council Dinner City Council 106.93 100-4110-51600 **9962 City Card 11/18/2020 City Credit Card Charges Café Rio - City Council Dinner City Council 101.43 100-4110-51600 **9962 City Card 11/20/2020 City Credit Card Charges National Notary Association - National Notary Association Membership S.Roseen S.Roseen -8.91 100-4113-52200 **9962 City Card 11/20/2020 City Credit Card Charges League Of California Cities - New Law & Election Webinar Registration S.Manwaring S.Manwaring 150.00 100-4113-52210 **9739 City Card 10/26/2020 City Credit Card Charges Staples - Park Closure Signs For Community Services Community Services 24.02 100-4660-51011 **9739 City Card 10/26/2020 City Credit Card Charges Submarina - Meals For Senior Lunch Program Non-Departmental 490.00 100-4221-52214 Covid-19 **9739 City Card 10/27/2020 City Credit Card Charges Submarina - Meals For Senior Lunch Program Non-Departmental 490.00 100-4221-52214 Covid-19 **9739 City Card 10/29/2020 City Credit Card Charges USPS - Shipping Costs For Tiny Tots Program Supplies Non-Departmental 13.80 480-4554-51011 **9739 City Card 10/29/2020 City Credit Card Charges Udemy Training Courses - Microsoft Excel Training Course J.Hendrix J.Hendrix 19.99 100-4660-52211 **9739 City Card 10/30/2020 City Credit Card Charges Shindigz.com - Decorations For Holiday Event Community Services 268.20 100-4660-51700 21-Xmas **9739 City Card 10/30/2020 City Credit Card Charges YardInflatables.com - Decorations For Holiday Event Community Services 244.80 100-4660-51700 21-Xmas **9739 City Card 11/2/2020 City Credit Card Charges Subway - Meals For Senior Lunch Program Non-Departmental 420.00 100-4221-52214 Covid-19 **9739 City Card 11/2/2020 City Credit Card Charges Dollar Tree - Supplies For Little Learners Program Community Services 21.60 100-4660-51011 **9739 City Card 11/3/2020 City Credit Card Charges Subway - Meals For Senior Lunch Program Non-Departmental 420.00 100-4221-52214 Covid-19 **9739 City Card 11/4/2020 City Credit Card Charges YardInflatables.com - Decorations For Holiday Event Community Services 102.58 100-4660-51700 21-Xmas **9739 City Card 11/5/2020 City Credit Card Charges Fun Express - Craft Supplies For Lazy Creek Community Services 707.65 480-4554-51011 **9739 City Card 11/11/2020 City Credit Card Charges S&S Worldwide - Craft Supplies For Lazy Creek Community Services 586.47 480-4554-51011 **9739 City Card 11/11/2020 City Credit Card Charges OTC Brands Inc. - Supplies For Holiday Event Community Services 1275.99 100-4660-51700 21-Xmas **9739 City Card 11/12/2020 City Credit Card Charges Pitstop Pub Sports Bar - Meals For Senior Lunch Program Non-Departmental 939.06 100-4221-52214 Covid-19 **9739 City Card 11/13/2020 City Credit Card Charges 99 Cents Only Store - Supplies For Nature & Me Program Community Services 2.18 100-4660-51011 **9739 City Card 11/13/2020 City Credit Card Charges Fun Express - Craft Supplies For Lazy Creek Community Services 291.71 480-4554-51011 **9739 City Card 11/16/2020 City Credit Card Charges Subway - Meals For Senior Lunch Program Non-Departmental 420.00 100-4221-52214 Covid-19 **9739 City Card 11/16/2020 City Credit Card Charges Snowonder.com - Supplies For Holiday Event Community Services 106.58 100-4660-51700 21-Xmas **9739 City Card 11/17/2020 City Credit Card Charges Subway - Meals For Senior Lunch Program Non-Departmental 420.00 100-4221-52214 Covid-19 **1016 City Card 11/22/2020 City Credit Card Charges Apple.com - Extra Storage For City Manager Iphone City Manager 0.99 100-4111-51600 **1016 City Card 11/23/2020 City Credit Card Charges International Economic Development Council - IEDC Membership For A.Villa A.Villa 200.00 100-4111-52200 **1016 City Card 11/24/2020 City Credit Card Charges Academy Of Board Certified Environmental Professionals - ABCEP Membership For A.Villa A.Villa 200.00 100-4111-52200 **5047 City Card 10/27/2020 City Credit Card Charges Knox Company - PD Materials And Supplies Menifee PD 324.08 100-4911-51011 **5047 City Card 10/27/2020 City Credit Card Charges California Police Chief's Association - CPCA Membership for D.Gutierrez D.Gutierrez 145.00 100-4911-52200 **5047 City Card 10/28/2020 City Credit Card Charges Riverside County Sheriff - Firearms Tactical Rifle Basic Training M.Harper M.Harper 265.74 100-4911-52211 **5047 City Card 10/28/2020 City Credit Card Charges Riverside County Sheriff - Firearms Tactical Rifle Basic Training T.D'Alessandro T.D'Alessandro 265.74 100-4911-52211 Item Title:10.2 Warrant Register Item Page Number:60 Menifee Mayor and City Council January 20,2021 Page 114 of 828 City of Menifee US Bank Credit Card Detail Nov'20 Last Four of CC Cardholder Date of Transaction Description Description Detail Charge Initiated For: Amount Account Number to be charged **5047 City Card 10/28/2020 City Credit Card Charges Riverside County Sheriff - Firearms Tactical Rifle Basic Training K.Steinhauser K.Steinhauser 265.74 100-4911-52211 **5047 City Card 10/28/2020 City Credit Card Charges Riverside County Sheriff - Firearms Tactical Rifle Basic Training R.Duran R.Duran 265.74 100-4911-52211 **5047 City Card 10/28/2020 City Credit Card Charges Riverside County Sheriff - Firearms Tactical Rifle Basic Training D.Beare D.Beare 265.74 100-4911-52211 **5047 City Card 10/30/2020 City Credit Card Charges California Police Chief's Association - CPCA Membership for C.Karrer C.Karrer 145.00 100-4911-52200 **5047 City Card 11/3/2020 City Credit Card Charges Turner's Outdoorsmen - Ammo For Police Department Menifee PD 35.08 100-4911-52751 **5047 City Card 11/3/2020 City Credit Card Charges The Shootist - Ammo For Police Department Menifee PD 74.79 100-4911-52751 **5047 City Card 11/6/2020 City Credit Card Charges Riverside County Department Of Waste - Disposal Of Marijuana Supply Menifee PD 14.72 100-4911-51600 **5047 City Card 11/10/2020 City Credit Card Charges Smash Balloon - Marketing Program For PD Website Menifee PD 49.00 100-4911-51720 **5047 City Card 11/10/2020 City Credit Card Charges Embroidery & More - Shirts For Ride Along Program Menifee PD 26.40 100-4911-51720 **5047 City Card 11/12/2020 City Credit Card Charges Riverside County Sheriff - Firearms Tactical Rifle Basic Training T.Horner T.Horner 265.74 100-4911-52211 **5047 City Card 11/12/2020 City Credit Card Charges Staples - Shipping Cost Of K9 Supplies Menifee PD 15.42 100-4911-51200 **5047 City Card 11/16/2020 City Credit Card Charges Kahoots - Dog Food For Menifee PD K9 Menifee PD 134.83 100-4911-52753 **5047 City Card 11/18/2020 City Credit Card Charges Ray Allen - Equipment For Menifee PD K9 Menifee PD -146.80 100-4911-52753 **5047 City Card 11/18/2020 City Credit Card Charges Temecula Auto Glass - PD Equipment Maintenance Menifee PD 199.00 100-4911-52500 **5047 City Card 11/19/2020 City Credit Card Charges Alien Gear - PD Uniforms Menifee PD 85.19 100-4911-52400 **5047 City Card 11/20/2020 City Credit Card Charges Curtis Blue Line - PD Uniforms Menifee PD 175.40 100-4911-52400 **5047 City Card 11/23/2020 City Credit Card Charges Riverside County Department Of Waste - Disposal Of Marijuana Supply Menifee PD 32.73 100-4911-51600 **5047 City Card 11/23/2020 City Credit Card Charges Riverside County Department Of Waste - Disposal Of Marijuana Supply Menifee PD 14.72 100-4911-51600 **5047 City Card 11/24/2020 City Credit Card Charges Gracie's Lunch Box - Meals For First Ride Along Winner Menifee PD 33.44 100-4911-51600 **9261 City Card 10/28/2020 City Credit Card Charges CR&R - Dumping Fee For Public Works Public Works 210.00 200-4552-52601 **9261 City Card 10/29/2020 City Credit Card Charges ASE - ASE Re-Certification Course B.Misev B.Misev 138.95 115-4117-52211 **9261 City Card 10/29/2020 City Credit Card Charges Full Source - Public Works Uniforms Public Works 877.23 200-4552-52400 **9261 City Card 10/29/2020 City Credit Card Charges ComplianceSigns.com - PD Facilities Materials And Supplies Facilities 14.70 116-4911-51501 **9261 City Card 11/2/2020 City Credit Card Charges Lowes - Public Works Administration Materials And Supplies Facilities 6.57 116-4550-51501 **9261 City Card 11/3/2020 City Credit Card Charges Richardson's RV Center - PD Facilities Materials And Supplies Facilities 23.91 116-4911-51501 **9261 City Card 11/6/2020 City Credit Card Charges New Pig - Fleet Materials And Supplies Fleet 471.42 115-4117-51501 **9261 City Card 11/19/2020 City Credit Card Charges Master Lock - Public Works For Materials And Supplies Public Works 434.09 200-4552-51501 26043.61 Item Title:10.2 Warrant Register Item Page Number:61 Menifee Mayor and City Council January 20,2021 Page 115 of 828 Date Paid by:Payee Description Amount 12/11/2020 ACH City Payroll Payroll Period 11/21/2020 - 12/4/2020 660,310.08 12/11/2020 ACH ICMA Payroll Period 11/21/2020 - 12/4/2020 32,549.60 12/23/2020 ACH City Payroll Payroll Period 12/5/2020 - 12/18/2020 651,325.98 12/23/2020 ACH ICMA Payroll Period 12/5/2020 - 12/18/2020 31,938.31 TOTAL PAYROLL:1,376,123.97$ Date Paid by:Payee Description Amount 12/2/2020 ACH PayPros Credit Card Processing Fees 12,194.91 12/4/2020 ACH CALPERS - Medical Dec-20 233,735.53 12/10/2020 ACH CALPERS - Retirement Payroll Period 10/24/2020 - 11/6/2020 81,986.67 12/10/2020 ACH CALPERS - Retirement Payroll Period 10/24/2020 - 11/6/2020 56,680.59 12/23/2020 ACH CALPERS - Retirement Payroll Period 10/24/2020 - 11/6/2020 3,791.54 12/24/2020 ACH CALPERS - Retirement Payroll Period 11/7/2020 - 11/20/2020 81,841.81 12/24/2020 ACH CALPERS - Retirement Payroll Period 11/7/2020 - 11/20/2020 60,949.40 12/24/2020 ACH CALPERS - Retirement Retiree Replacement Benefit Charges 2,634.96 TOTAL OTHER EFT'S:533,815.41$ TOTAL PAYMENTS:1,909,939.38$ Payroll Register, Taxes and Other EFT's/Wires City of Menifee January 20, 2021 Item Title:10.2 Warrant Register Item Page Number:62 Menifee Mayor and City Council January 20,2021 Page 116 of 828 Status V 12/01/2020 1,157.63 1,157.63 1,675.65 3 checks in this Total Checks:1,675.65 47506 12/18/2020 00054 EDEN SYSTEMS DIVISION TYLER TECHNOLOGIES, INCV12/28/2020 025-315613 429.02 47278 12/04/2020 02027 CHRISTOPHER CARRINO V 12/17/2020 CK REQ 11/24 11/24/2020 89.00 89.00 10/27/2020 300.81 12/15/2020 380284940 10/27/2020 128.21 Invoice Inv. Date Amount Paid Check Total 47217 11/20/2020 01979 SPECIALISTS (MURRIETA) VCA CALIFORNIA VETERINARYV12/15/2020 380284938 Check #Date Vendor Clear/Void Date A/P Void Check Listing Item Title:10.2 Warrant Register Item Page Number:63 Menifee Mayor and City Council January 20,2021 Page 117 of 828 CITY OF MENIFEE SUBJECT: Treasurer's Report - November 2020 MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Wendy Preece, Deputy Finance Director REVIEWED BY: Rochelle Clayton, Deputy City Manager APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION Approve the Treasurer’s Report for November 2020. DISCUSSION Attached is the Treasurer’s report for Cash and Investments for the month of November 2020. STRATEGIC PLAN OBJECTIVE Regular City Business FISCAL IMPACT: There is no fiscal impact associated with the recommended action. ATTACHMENTS 1. November 2020 Treasurer’s Report Item Title:10.3 Treasurer's Report -November 2020 Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 118 of 828 Item Title:10.3 Treasurer's Report -November 2020 Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 119 of 828 CITY OF MENIFEE SUBJECT: Purchase and Sale Agreement between Sun City Investments, LLC And the City of Menifee for the Purchase of Real Property MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Gina Gonzalez, Economic Development Director REVIEWED BY: Jeff Wyman, Assistant City Manager APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Approve the Purchase and Sale Agreement between Sun City Investments, LLC And the City of Menifee for the Purchase of Real Property, located at the corner of Bradley Road and Cherry Hills Boulevard, utilizing Development Impact Fee (DIF) Fund Balance for $7.97/sq ft ($1,999,999); and 2. Approve a Budget Amendment Resolution; and 3. Designate the City Manager or his/her designee, to negotiate and execute all the necessary agreements or documents related to the land acquisition, including but not limited to the grant deed, surveying, escrow, title insurance, and full land appraisal for a not-to-exceed amount of $7,000; and 4.Direct the City Clerk’s Office to file the Purchase and Sale Agreement and Grant Deed with Riverside County Clerk’s Office. DISCUSSION Since the City’s incorporation in 2008, the City of Menifee has grown over 70% and provides vital services to close to 98,000 residents and over 4,000 businesses, and has population projections of growing 10% over the next two years. The City of Menifee is now the fastest growing City in Southwest Riverside County, and 12th in the State with population growth. As the City quickly matured from a young budding city to now a recognized “National Boomtown” and Top 100 Cities to Raise Kids, and Top 30 Safest City in California, Menifee has been struggling to expand its facilities to keep pace with Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 120 of 828 City of Menifee Staff Report PSA between Sun City Investments, LLC/City of Menifee for the Purchase of Real Property January 20, 2021 Page 2 of 3 2 1 1 the record growth, service needs, and space to provide the level of service Menifee residents have come to expect and enjoy from a new, clean, and vibrant City that has attracted many to this area. In 2019, Menifee’s Executive Team discussed future facilities and capacity, service needs, and worked with local commercial realtors to identity potential unimproved and vacant land that was centrally located, and fit the identified required criteria for service needs within the City for possible future operations via maintenance or otherwise. After much due diligence, including preliminary appraisals, and comparables in the area, staff completed many analysis’ to ultimately determine and recommend to City Council acquiring APN 337-230-012, a 5.76 acre parcel in Sun City, adjacent to the existing two- acre parcel that the City of Menifee currently owns, where the current Fire Station #7 and an empty one-acre parcel is located giving the City potentially 6.76 of land for a future service use as shown in the attached location map. When the City was ready to approach the landowner for negotiations in 2019, the property was already in escrow. Since then, it was in two long escrows, and the City was recently notified the property fell out of both escrows and that the owner was asking $9.56/sq ft ($2.4M). City staff conducted additional due diligence on the property and local comparables, and appraisals from four sources, and showed that the City would not be overpaying for the property that has a clean Phase I and II Environmental Due Diligence Report. Staff recommends approval to acquire the additional 5.76 acre property, at an arm’s length of existing City land, at the negotiated price of $7.97/sq ft, ($1,999,999), saving over $401,000 from the asking price for future required vital service needs in the city. Additionally, staff recommends expending an additional $2,600 for possible surveying, title, escrow fee, filing fees, as well as approve the Professional Services Agreement for full bond rated appraisal services on the property with Santolucito Dore for $4,400 for a total not-to-exceed amount of $7,000, and an aggregate of $2,006,999 (land plus additional services). Funds would come from the Development Impact Fee (DIF) fund, paid for by developers for the future impacts of projects in the city. City staff worked hard in negotiations to great value for the land, which also included the seller and broker split paid commissions, saving the city an additional $50,000 (for a total savings of $451,000), with terms to close escrow within two weeks upon City Council approval. STRATEGIC PLAN OBJECTIVE Responsive and Transparent Community Government The acquisition of real property for future city facilities allows the City to become more responsive and provide a higher standard of services to Menifee's growing community. With minimal city owned property, the ability to provide the required vital essential services are hampered by the City's ability to grow with its residents and businesses, something residents and businesses have come to expect and enjoy in the City. Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 121 of 828 City of Menifee Staff Report PSA between Sun City Investments, LLC/City of Menifee for the Purchase of Real Property January 20, 2021 Page 3 of 3 2 1 1 FISCAL IMPACT The current fiscal impact for this item is $2,006,999 and an additional appropriation is needed from DIF 17 – Public Facilities Fund balance. This purchase would be utilizing Development Impact Fees (DIF) in account #507-4555-58113. Total Funds for Real Property Acquisition Project City DIF Funds – land $1,999,999 City DIF Funds- surveying, filing fees, appraisal, escrow, etc.$ 7,000 Total Funds for Property Acquisition $2,006,999 ATTACHMENTS 1. Budget Amendment Resolution 2. Purchase and Sale Agreement for Real Property Acquisition 3. Professional Services Agreement with Santolucito and Dore for full appraisal services 4. Location Map Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 122 of 828 RESOLUTION NO. 21-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING THE FISCAL YEAR 2020/21 OPERATING BUDGET WHEREAS, the City of Menifee, California adopted a budget for the fiscal year 2020/21 with Resolution No. 20-916 on June 3rd, 2020; and WHEREAS, the City of Menifee does from time to time have unanticipated revenues and/or expenditures arise; and WHEREAS, it is in the best interest of the citizens of the City of Menifee to allocate budget resources to continue and enhance the operations of the City of Menifee; and WHEREAS, the City Council of the City of Menifee needs to amend the fiscal year 2020/21 budget to reflect an additional revenue source and a corresponding additional expenditure as follows: AMENDMENTS TO ADOPTED BUDGET: DIF 17 Public Facilities Adopted FY20/21 Budget: $317,390 1. Record Revenue Estimate(s): CITY COUNCIL MEETING DESCRIPTION ACCOUNT #AMOUNT TOTAL: Amended DIF 17 Public Facilities FY 2020/21 Revenue Budget: $317,390 DIF 17 Public Facilities Fund Adopted FY20/21 Budget: $850,000 2. Record Appropriation(s): CITY COUNCIL MEETING DESCRIPTION ACCOUNT #AMOUNT October 21, 2020 Various Expenditures DIF Public Facility Fund 507-XXXX-XXXXX 900,548 January 20, 2021 Sun City Property Acquisition 507-4555-58113 2,006,999 TOTAL:$2,907,547 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 123 of 828 Amending the Fiscal Year 2020/21 Budget 2 Amended DIF 17 Public Facilities Fund FY 2020/21 Expenditure Budget: $3,757,547 3. Record Transfer of Funds: FROM ACCOUNT #TO ACCOUNT #AMOUNT TOTAL:0 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS: The annual budget for the City of Menifee for fiscal year 2020/21 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows: Revenues: Amended FY 2020/21 Revenue Budget: $ 317,390 Expenditures: Sun City Property Acquisition: $2,006,999 Amended FY 2020/21 Expenditure Budget: $ 3,757,547 PASSED, APPROVED AND ADOPTED this 20th day of January, 2021. _____________________________ Bill Zimmerman, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ Sarah A. Manwaring, City Clerk Jeffrey T. Melching, City Attorney Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 124 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 125 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 126 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 127 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 128 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 129 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 130 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 131 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 132 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 133 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 134 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 135 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 136 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 137 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 138 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 139 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 140 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 141 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 142 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 143 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 144 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 145 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:27 Menifee Mayor and City Council January 20,2021 Page 146 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:28 Menifee Mayor and City Council January 20,2021 Page 147 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:29 Menifee Mayor and City Council January 20,2021 Page 148 of 828 Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:30 Menifee Mayor and City Council January 20,2021 Page 149 of 828 2671/031858-0001 7630421.2 a05/22/20 CITY OF MENIFEE PROFESSIONAL SERVICES AGREEMENT CITY OF MENIFEE: REAL PROPERTY APPRAISAL SERVICES THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and effective this _____ day of __________, 2020 (“Effective Date”) by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and SANTOLUCITO DORE GROUP, INC, a California S Corporation (“Consultant”). City and Consultant may sometimes herein be referred to individually as a “Party” and collectively as the “Parties.” SECTION 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A and incorporated herein by this reference (the “Services”). Consultant will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail. 1.1 Term of Services. The term of this Agreement shall begin on January 20, 2021 and shall end on December 31, 2021 unless the term of this Agreement is otherwise terminated or extended as provided for in Section 8. The time provided to Consultant to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8. 1.2 Standard of Performance. Consultant represents and warrants that Consultant is a provider of first class work and services and Consultant is experienced in performing the Services contemplated herein and, in light of such status and experience, Consultant shall perform the Services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession and to the sole satisfaction of the Contract Administrator. 1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform the Services pursuant to Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons. 1.4 Time. Consultant shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Consultant’s obligations hereunder. 1.5 Authorization to Perform Services. Consultant is not authorized to perform any of the Services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator. Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:31 Menifee Mayor and City Council January 20,2021 Page 150 of 828 2671/031858-0001 7630421.2 a05/22/20 -2- SECTION 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed FOUR THOUSAND FOUR HUNDRED DOLLARS AND ZERO CENTS ($4,400.00) notwithstanding any contrary indications that may be contained in Consultant’s proposal, for the Services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for the Services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person. 2.1 Invoices. Consultant shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information: a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion; d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense; e. The total number of hours of work performed under this Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed; g. The Consultant Representative’s signature. Invoices shall be submitted to: City of Menifee Attn: Accounts Payable 29844 Haun Road Menifee, CA 92586 2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for the Services satisfactorily performed, and for authorized reimbursable costs incurred. City Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:32 Menifee Mayor and City Council January 20,2021 Page 151 of 828 2671/031858-0001 7630421.2 a05/22/20 -3- shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Consultant. 2.3 Final Payment. City shall pay the last five percent (5%) of the total amount due pursuant to this Agreement within sixty (60) days after completion of the Services and submittal to City of a final invoice, if all of the Services required have been satisfactorily performed. 2.4 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice. 2.5 Hourly Fees. Fees for the Services performed by Consultant on an hourly basis shall not exceed the amounts shown on the fee schedule included with Exhibit A. 2.6 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. 2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes. 2.8 Payment upon Termination. In the event that City or Consultant terminates this Agreement pursuant to Section 8, City shall compensate Consultant for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date. SECTION 3. FACILITIES AND EQUIPMENT. Except as otherwise provided, Consultant shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. City shall make available to Consultant only physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and the information in possession of City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be required to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities. SECTION 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance checked below and provide Certificates of Insurance, indicating that Consultant has obtained or currently maintains insurance that meets the Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:33 Menifee Mayor and City Council January 20,2021 Page 152 of 828 2671/031858-0001 7630421.2 a05/22/20 -4- requirements of this section and which is satisfactory, in all respects, to City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in Consultant’s compensation. Consultant shall not allow any subcontractor, consultant or other agent to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant acknowledges the insurance policy must cover inter-insured suits between City and other Insureds. 4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Consultant pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Consultant may rely on a self- insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Consultant, if a program of self- insurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. 4.2 Commercial General and Automobile Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, and non-owned automobiles. b. Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9. No endorsement shall be attached limiting the coverage. c. Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy: Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:34 Menifee Mayor and City Council January 20,2021 Page 153 of 828 2671/031858-0001 7630421.2 a05/22/20 -5- a. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis. b. Any failure of Consultant to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers. 4.3 Professional Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing the Services pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals’ errors and omissions. Any deductible or self-insured retention shall be shown on the Certificate. If the deductible or self-insured retention exceeds TWENTY-FIVE THOUSAND DOLLARS ($25,000), it must be approved by City. b. Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form: a. The retroactive date of the policy must be shown and must be no later than the commencement of the Services. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after the expiration or termination of this Agreement or completion of the Services, so long as commercially available at reasonable rates. c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Consultant must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Consultant’s sole cost and expense, any extended reporting provisions of the policy, if Consultant cancels or does not renew the coverage. d. A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement. 4.4 All Policies Requirements. a. Acceptability of insurers. All insurance required by this Section is to be placed with insurers with a Bests’ rating of no less than A:VII and admitted in California. Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:35 Menifee Mayor and City Council January 20,2021 Page 154 of 828 2671/031858-0001 7630421.2 a05/22/20 -6- b. Verification of coverage. Prior to beginning the Services under this Agreement, Consultant shall furnish City with Certificates of Insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The Certificate of Insurance must include the following reference: CITY OF MENIFEE: REAL PROPERTY APPRAISAL SERVICES. The name and address for Additional Insured endorsements, Certificates of Insurance and Notice of Cancellation is: City of Menifee, 29844 Haun Road, Menifee, CA 92586. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Consultant. c. Notice of Reduction in or Cancellation of Coverage. Consultant shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. d. Additional insured; primary insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Consultant, including the insured’s general supervision of Consultant; products and completed operations of Consultant, as applicable; premises owned, occupied, or used by Consultant; and automobiles owned, leased, or used by Consultant in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services. A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage. e. Deductibles and Self-insured Retentions. Consultant shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Consultant may increase such deductibles or self- insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Consultant procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. f. Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:36 Menifee Mayor and City Council January 20,2021 Page 155 of 828 2671/031858-0001 7630421.2 a05/22/20 -7- subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. g. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected. 4.5 Remedies. In addition to any other remedies at law or equity City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement. SECTION 5. INDEMNIFICATION. 5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties of any kind (including reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Consultant fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Consultant, its officers, agents, employees, or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. 5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:37 Menifee Mayor and City Council January 20,2021 Page 156 of 828 2671/031858-0001 7630421.2 a05/22/20 -8- 5.3 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity. SECTION 6. STATUS OF CONSULTANT. 6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents is in any manner officers, officials, employees, or agents of City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. SECTION 7. LEGAL REQUIREMENTS. 7.1 Governing Law. The laws of the State of California shall govern this Agreement. 7.2 Compliance with Applicable Laws. Consultant and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Consultant shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Any and all work subject to prevailing wages, as determined by the Director of Industrial Relations of the State of California, will be the minimum paid to all laborers, including Consultant’s employee and subcontractors. It is understood that it is the responsibility of Consultant to determine the correct scale. The State Prevailing Wage Rates may be obtained from the California Department of Industrial Relations (“DIR”) pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415-703-4774. Appropriate records demonstrating compliance with such requirement shall be maintained in a safe and secure location at all times, and readily available at City’s request. Consultant shall indemnify, defend, and hold City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers harmless from and against any liability, loss, damage, cost or expenses (including but not limited to Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:38 Menifee Mayor and City Council January 20,2021 Page 157 of 828 2671/031858-0001 7630421.2 a05/22/20 -9- reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by Consultant or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Consultant or any party performing the Services to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all public works (as defined by applicable law), Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Consultant acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Consultant shall require the same of all subcontractors. 7.3 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City. SECTION 8. TERMINATION AND MODIFICATION. 8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. 8.2 Termination by Consultant. Consultant may cancel this Agreement upon 30 days’ written notice to City. 8.3 Consequences of Termination. In the event of termination, Consultant shall be entitled to compensation for the Services performed up to the date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or City in connection with this Agreement. 8.4 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:39 Menifee Mayor and City Council January 20,2021 Page 158 of 828 2671/031858-0001 7630421.2 a05/22/20 -10- authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period. 8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. 8.6 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in Consultant’s proposal, without prior written approval of the Contract Administrator. In the event that key personnel leave Consultant’s employ, Consultant shall notify City immediately. 8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the expiration or termination of this Agreement. 8.8 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City's remedies shall include, but not be limited to, any or all of the following: a. Immediately terminate this Agreement; b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different consultant to complete the Services described in Exhibit A; and/or d. Charge Consultant the difference between the cost to complete the Services described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the Services. SECTION 9. KEEPING AND STATUS OF RECORDS. 9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of City. Consultant hereby agrees to deliver those documents to City upon the expiration or termination of this Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for City and are not necessarily suitable for any future or other use. Any Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:40 Menifee Mayor and City Council January 20,2021 Page 159 of 828 2671/031858-0001 7630421.2 a05/22/20 -11- use of such documents for other projects by City shall be without liability to Consultant. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. 9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents and Data”). Consultant shall require all subcontractors to agree in writing that City is granted a non- exclusive and perpetual license for any Documents and Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents and Data. Consultant makes no such representation and warranty in regard to Documents and Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 9.3 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for the Services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. 9.4 Inspection and Audit of Records. Any records or documents that Section 9.3 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. SECTION 10. MISCELLANEOUS PROVISIONS. 10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose. Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:41 Menifee Mayor and City Council January 20,2021 Page 160 of 828 2671/031858-0001 7630421.2 a05/22/20 -12- 10.2 Applicable Law; Venue. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County. 10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. 10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 10.5 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 10.7 Consultant Representative. All matters under this Agreement shall be handled for Consultant by CHRISTINE S. SANTOLUCITO, R/W-AC (“Consultant’s Representative”). The Consultant’s Representative shall have full authority to represent and act on behalf of Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 10.8 City Contract Administration. This Agreement shall be administered by a City employee, Gina Gonzalez, Economic Development Director (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. The Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Consultant shall not accept direction or orders from any person other than the Contract Administrator or his designee. 10.9 Notices. Any written notice to Consultant shall be sent to: SANTOLUCITO DORE GROUP, INC Attn: CHRISTINE S. SANTOLUCITO, R/W-AC 31600 Railroad Canyon Road, Suite 100-L Canyon Lake, CA 92587 Any written notice to City shall be sent to the Contract Administrator at: City of Menifee 29844 Haun Road Menifee, CA 92586 Attn: Gina Gonzalez, Economic Development Director Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:42 Menifee Mayor and City Council January 20,2021 Page 161 of 828 2671/031858-0001 7630421.2 a05/22/20 -13- with a copy to: City Clerk City of Menifee 29844 Haun Road Menifee, CA 92586 10.10 Professional Seal. Where applicable in the determination of the Contract Administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled “Seal and Signature of Registered Professional with report/design responsibility,” as in the following example. __________________________________________ Seal and Signature of Registered Professional with report/design responsibility. 10.11 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 10.12 Integration. This Agreement, including the scope of services attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. 10.14 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. 10.15 Nondiscrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:43 Menifee Mayor and City Council January 20,2021 Page 162 of 828 2671/031858-0001 7630421.2 a05/22/20 -14- 10.16 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.17 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 10.18 No Undue Influence. Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Consultant, or from any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. 10.19 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Services to be performed under this Agreement. [Signatures on Following Page] Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:44 Menifee Mayor and City Council January 20,2021 Page 163 of 828 2671/031858-0001 7630421.2 a05/22/20 -15- IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date. CITY OF MENIFEE Armando G. Villa, City Manager Attest: Sarah A. Manwaring, City Clerk Approved as to Form: Jeffrey T. Melching, City Attorney CONSULTANT Christine S. Santolucito, President Lance W. Doré, Treasurer [Note: 2 officer’s signatures required if Consultant is a corporation, unless provided with a certificate of secretary in-lieu] Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:45 Menifee Mayor and City Council January 20,2021 Page 164 of 828 2671/031858-0001 7630421.2 a05/22/20 EXHIBIT A EXHIBIT A SCOPE OF SERVICES Consultant shall provide Real Property Appraisal Services in the not to exceed amount of FOUR THOUSAND FOUR HUNDRED DOLLARS AND ZERO CENTS ($4,400.00) as further detailed in the following pages. Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:46 Menifee Mayor and City Council January 20,2021 Page 165 of 828 2671/031858-0001 7630421.2 a00/00/00 EXHIBIT A Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:47 Menifee Mayor and City Council January 20,2021 Page 166 of 828 2671/031858-0001 7630421.2 a00/00/00 -2- Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:48 Menifee Mayor and City Council January 20,2021 Page 167 of 828 LOCATION MAP Item Title:10.4 Purchase and Sale Agreement between Sun City Investments,LLC And the City of Menifee for the Purchase of Real Property Item Page Number:49 Menifee Mayor and City Council January 20,2021 Page 168 of 828 CITY OF MENIFEE SUBJECT: Centennial Park Sports Field Lighting, CIP No. 20-09 (CS015) MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Mariana Mitchell, Senior Management Analyst REVIEWED BY: Jonathan Nicks, Community Services Director APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Accept Proposition 68 Per Capita Funding Grants provided by the State of California Department of Parks and Recreation, in the amounts of $177,952 and $57,123 for a total of $235,075 and authorize the City Manager, or his designee, to execute all necessary documents to implement the funded project/program(s); and 2. Adopt a Resolution authorizing an increase in revenue and appropriation of expenditures in the amount of $235,075 to accounts identified in the Fiscal Impact; and 3. Approve a contract with MUSCO Sports Lighting, LLC in the amount of $730,000 to furnish and install MUSCO Sports Field Lighting at Centennial Park for $730,000; and 4. Approve a contingency of 20%, or $146,000, for unanticipated change order(s) for work identified during the installation/construction process and authorize the City Manager or designee to execute any corresponding amendment(s)/change order(s); and 5. Exempt Purchase from the competitive bidding process as purchase will be made under a cooperative purchasing (piggyback) agreement as allowed under Menifee Municipal Code Section 3.12.070(6) with Sourcewell Contract No. 071619-MSL. DISCUSSION On October 2, 2019, the Mayor and City Council adopted Resolution 19-835 authorizing the filing of applications to the State of California, Department of Parks and Recreation Proposition 68 Statewide Per Capita grant funding program. As a part of the application process, Community Services staff identified CIP No. CS015 Sports Field Lighting as a potential project for the additional funds, if awarded. On June 24, 2020, funding allocations were announced, and the Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 169 of 828 City of Menifee Staff Report CIP No. CS015 Sports Field Lighting January 20, 2021 Page 2 of 4 2 2 4 City of Menifee received $177,952 from the Per Capita Grant program, plus an additional $57,123 in Urban County Per Capita funds for a total of $235,075. After meeting the grant requirements in the filing of project applications, the State of California has issued funding Contract C9801489 and C9802209 for the City to formally accept and utilize grant funds for CIP No. 20-09 (CS015) Sports Field Lighting at Centennial Park. Centennial Park is a 10-acre park that was accepted by the City of Menifee and opened to the public in March 2020. Park amenities include a park playground, two basketball courts, two picnic shelters, restroom facilities, two baseball fields, and one multipurpose field. Centennial Park does not currently have lighting for the sports fields, however, in anticipation of installing lights in the future, City staff worked with the developer, Pardee Homes, who agreed to install electrical conduit throughout the park for future use. Capital Improvement Project (CIP) No. CS015 for Sports Field Lighting was budgeted and approved as a part of the FY 2019/20 CIP Budget for lights to be installed on both baseball fields and the multipurpose field. However, with rising costs of construction, the project was rolled over with additional funding allocated into the FY 2020/21 CIP Budget. The City currently has only four parks throughout the City that have lights for sports leagues to utilize in the fall and winter when the sun sets earlier. Aside from the obvious need to provide additional amenities to Menifee residents, this project also addresses the need identified in the Parks, Trails, Open Space Master Plan for more lighted sports fields. With the installation of these three fields nearly doubles the hours of play available each day during the fall and winter months. As with most parks situated within a community, there were some concerns regarding sport field lighting bleeding into neighboring homes. The manufacturer identified for the project, Musco Sports Lighting, LLC, was able to provide examples of already existing parks with their enhanced LED lighting system that is proven to provide quality light with minimal or no impact to nearby homes. The information was presented during the July 2020 meeting of the Centennial homeowner’s association with over thirty participants in the virtual meeting and the residents appreciated the information and were supportive of the project. The proposed project has been determined to be Categorically Exempt (“Existing Facilities”) under California Environmental Quality Act (CEQA) Guidelines, Section 15301 (“Class 1”) and (“New Construction or Conversion of Small Structures”) Section 15303 (“Class 3”). Subsequently, a Notice of Exemption has been prepared to be recorded with the County of Riverside. Included in the purchase of the LED lighting system is a complete, trouble-free, all-in-one solution called MuscoVision that makes it easy for agencies to broadcast practices and games taking place on these lighted fields to family and friends watching from across town or around the country. MuscoVision is an on-demand video streaming application that users can download in order to watch a game live or re-watch a game they may have missed at high definition. The user must purchase access to the streaming service from the City which shares the revenue with Musco. The City receives 70% of the revenue share from the users. The purchase of sports field lighting must comply with specific procurement procedures, which would ordinarily require going through a competitive bid process. By using Sourcewell, a cooperative purchasing organization for the public sector, Contract No. 071619-MSL, the City Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 170 of 828 City of Menifee Staff Report CIP No. CS015 Sports Field Lighting January 20, 2021 Page 3 of 4 2 2 4 shall forgo the competitive bidding process and leverage the other public agencies’ buying power. The City will benefit by reducing administrative costs and obtain lower pricing, as allowed under the Menifee Municipal Code Section 3.12.070 (6). This in turn results in cost savings for smaller government entities. Musco Sports Lighting, LLC is an established vendor through Sourcewell. The request for appropriation of additional funds and expenditure was reviewed and recommended for approval by the Parks, Recreation and Trails Commission at the December Regular Meeting. The total cost of the lighting and installation is $730,000; however, staff has requested a 20% contingency fund in the amount of $146,000. The requested contingency fund is higher than typical projects due to the information provided from the recent soil samples in the project area that hit rock at 13’ with the project requiring 19’ footings, and the information provided from neighboring projects at Liberty High School and Lago Vista Park having similar terrain and resulting in increased costs that were beyond the standard contingency. The additional allowance of a 20% contingency would allow for the project timeline to remain on track for a late spring/early summer opening. The projected total cost of the project is not-to-exceed $876,000 ($730,000 contract amount, plus $146,000 contingency). STRATEGIC PLAN OBJECTIVE Livable & Economically Prosperous Community. FISCAL IMPACT There is no general fund impact with this project, as all project funding is derived from DIF (Development Impact Fees) and/or grant funding. The overall fiscal impact of the project is $876,000, including the 20% contingency, which will only be used as necessary. However, acceptance of the Prop. 68 Per Capita Funding Grants results in an increase in grant revenues (Account #301-3741 (Prop. 68 Per Capita Grant)) of $235,075 helping offset the costs of the project. Funding for CIP No. 20-09 (CS015) Sports Field Lighting has been funded with the following allocations in FY 2020/21: Fund Name Account Number Amount DIF 17 – Parks 511-4555-58092 $400,000 DIF – Citywide Parks 522-4555-58092 $240,925 Prop. 68 Per Capita Grant 301-4660-58092 $235,075 Total Project Cost $876,000 Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 171 of 828 City of Menifee Staff Report CIP No. CS015 Sports Field Lighting January 20, 2021 Page 4 of 4 2 2 4 ATTACHMENTS 1. 2018 Per Capita Grant Program Contracts (C9801498, C9802209) 2. Budget Amendment Resolution 3. Grant Summary Report (CS09801498, CS9802209) 4. Centennial Park Menifee Quote 5. MUSCO Agreement Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 172 of 828 State of California - Natural Resources Agency DEPARTMENT OF PARKS AND RECREATION GRANT CONTRACT 2018 Parks Bond Act Per Capita Grant Program GRANTEE THE PROJECT PERFORMANCE PERIOD is from Grantee The General and Special Provisions attached are made a part of and incorporated into the Contract. By Title Date (Signature of Authorized Representative) By Date STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION City of Menifee City of Menifee City Manager The GRANTEE agrees to the terms and conditions of this Contract, and the State of California, acting through its Director of the Department of Parks and Recreation, pursuant to the State of California, agrees to fund the total State grant amount indicated below. The GRANTEE agrees to complete the GRANT SCOPE(s) as defined in the GRANT SCOPE/Cost Estimate Form or acquisition documentation for the application(s) filed with the State of California. PROJECT NO. CERTIFICATION OF FUNDING AMOUNT ENCUMBERED BY THIS DOCUMENT CONTRACT NO FUND. PRIOR AMOUNT ENCUMBERED FOR THIS CONTRACT FISCAL SUPPLIER I.D. TOTAL AMOUNT ENCUMBERED TO DATE $ ITEM CHAPTER STATUTE FISCAL YEAR T.B.A. NO. B.R.. NO. Reporting Structured.Account/Alt Account. ACTIVITY CODE PROJECT / WORK PHASE I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance. ACCOUNTING OFFICER'S SIGNATURE DATE. 2020/21 C9801498 3790-101-6088 29 69801 Drought, Water, Cln Air, Cstl Protc, Outdoor Fund 37900091 5432000-5432000000 $177,952.00 0000013302 18 AMENDMENT NO $177,952.00 CONTRACT PERFORMANCE PERIOD is from July 01, 2018 through June 30, 2048 July 01, 2018 through June 30, 2024 18-33-004 Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 173 of 828 1 I. RECITALS This CONTRACT is entered into between the California Department of Parks and Recreation (hereinafter referred to as “GRANTOR,” “DEPARTMENT” or “STATE”) and City of Menifee (hereinafter referred to as “GRANTEE”). The DEPARTMENT hereby grants to GRANTEE a sum (also referred to as “GRANT MONIES”) not to exceed _$177,952___, subject to the terms and conditions of this AGREEMENT and the 2018/19 California State Budget, Chapter 29, statutes of 2018, Item number – 3790-101-6088 (appropriation chapter and budget item number hereinafter referred to as “PER CAPITA GRANT”). These funds shall be used for completion of the GRANT SCOPE(S). The Grant Performance Period is from _July 01, 2018_ to _June 30, 2024_. II. GENERAL PROVISIONS A. Definitions As used in this CONTRACT, the following words shall have the following meanings: 1. The term “ACT” means the California Drought, Water, Parks Climate, Coastal Protection, and Outdoor Access for All Act of 2018, as referred to in section I of this CONTRACT. 2. The term “APPLICATION” means the individual project APPLICATION packet for a project pursuant to the enabling legislation and/or grant program process guide requirements. 3. The term “DEPARTMENT” or “STATE” means the California Department of Parks and Recreation. 4. The term “DEVELOPMENT” means capital improvements to real property by means of, but not limited to, construction, expansion, and/or renovation, of permanent or fixed features of the property. 5. The term “GRANTEE” means the party described as the GRANTEE in Section I of this CONTRACT. 6. The term “GRANT SCOPE” means the items listed in the GRANT SCOPE/Cost Estimate Form or acquisition documentation found in each of the APPLICATIONS submitted pursuant to this grant. 7. The term “PROCEDURAL GUIDE” means the document identified as the “Procedural Guide for California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Act of 2018 Per Capita Program.” The Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 174 of 828 2 PROCEDURAL GUIDE provides the procedures and policies controlling the administration of the grant. B. Project Execution 1. Subject to the availability of GRANT MONIES, the STATE hereby grants to the GRANTEE a sum of money not to exceed the amount stated in Section I of this CONTRACT, in consideration of, and on condition that, the sum be expended in carrying out the purposes as set forth in the scope described in the enabling legislation and referenced in the APPLICATION, Section I of this CONTRACT, and under the terms and conditions set forth in this CONTRACT. The GRANTEE shall assume any obligation to furnish any additional funds that may be necessary to complete the GRANT SCOPE(S). The GRANTEE agrees to submit any change or alteration from the original GRANT SCOPE(S) in writing to the STATE for prior approval. This applies to any and all changes that occur after STATE has approved the APPLICATION. Changes in the GRANT SCOPE(S) must be approved in writing by the STATE. 2. The GRANTEE shall complete the GRANT SCOPE(S) in accordance with the time of the Performance Period set forth in Section I of this CONTRACT, and under the terms and conditions of this CONTRACT. 3. The GRANTEE shall comply with the California Environmental Quality Act (Public Resources Code, Section 21000, et seq., Title 14, California Code of Regulations, Section 15000 et seq.). 4. The GRANTEE shall comply with all applicable current laws and regulations affecting DEVELOPMENT projects, including, but not limited to, legal requirements for construction contracts, building codes, health and safety codes, and laws and codes pertaining to individuals with disabilities, including but not limited to the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and the California Unruh Act (California Civil Code §51 et seq.). C. Project Costs 1. GRANTEE agrees to abide by the PROCEDURAL GUIDE. 2. GRANTEE acknowledges that STATE may make reasonable changes to its procedures as set forth in the PROCEDURAL GUIDE. If STATE makes any changes to its procedures and guidelines, STATE agrees to notify GRANTEE within a reasonable time. D. Project Administration 1. If GRANT MONIES are advanced for DEVELOPMENT projects, the advanced funds shall be placed in an interest bearing account until expended. Interest earned on the advanced funds shall be used on the project as approved by the STATE. If grant monies are advanced and not expended, the unused portion of the Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 175 of 828 3 grant and any interest earned shall be returned to the STATE within 60 days after project completion or end of the Grant Performance Period, whichever is earlier. 2. The GRANTEE shall submit written project status reports within 30 calendar days after the STATE has made such a request. In any event, the GRANTEE shall provide the STATE a report showing total final project expenditures within 60 days of project completion or the end of the grant performance period, whichever is earlier. The Grant Performance Period is identified in Section I of this CONTRACT. 3. The GRANTEE shall make property or facilities acquired and/or developed pursuant to this contract available for inspection upon request by the STATE. E. Project Termination 1. Project Termination refers to the non-completion of a GRANT SCOPE. Any grant funds that have not been expended by the GRANTEE shall revert to the STATE. 2. The GRANTEE may unilaterally rescind this CONTRACT at any time prior to the commencement of the project. The commencement of the project means the date of the letter notifying GRANTEE of the award or when the funds are appropriated, whichever is later. After project commencement, this CONTRACT may be rescinded, modified or amended only by mutual agreement in writing between the GRANTEE and the STATE, unless the provisions of this CONTRACT provide that mutual agreement is not required. 3. Failure by the GRANTEE to comply with the terms of the (a) PROCEDURAL GUIDE, (b) any legislation applicable to the ACT, (c) this CONTRACT as well as any other grant contracts, specified or general, that GRANTEE has entered into with STATE, may be cause for suspension of all obligations of the STATE unless the STATE determines that such failure was due to no fault of the GRANTEE. In such case, STATE may reimburse GRANTEE for eligible costs properly incurred in performance of this CONTRACT despite non-performance of the GRANTEE. To qualify for such reimbursement, GRANTEE agrees to mitigate its losses to the best of its ability. 4. Any breach of any term, provision, obligation or requirement of this CONTRACT by the GRANTEE shall be a default of this CONTRACT. In the case of any default by GRANTEE, STATE shall be entitled to all remedies available under law and equity, including but not limited to: a) Specific Performance; b) Return of all GRANT MONIES; c) Payment to the STATE of the fair market value of the project property or the actual sales price, whichever is higher; and d) Payment to the STATE of the costs of enforcement of this CONTRACT, including but not limited to court and arbitration costs, fees, expenses of litigation, and reasonable attorney fees. 5. The GRANTEE and the STATE agree that if the GRANT SCOPE includes DEVELOPMENT, final payment may not be made until the work described in the GRANT SCOPE is complete and the GRANT PROJECT is open to the public. F. Budget Contingency Clause Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 176 of 828 4 If funding for any fiscal year is reduced or deleted by the budget act for purposes of this program, the STATE shall have the option to either cancel this contract with no liability occurring to the STATE, or offer a CONTRACT amendment to GRANTEE to reflect the reduced grant amount. This Paragraph shall not require the mutual agreement as addressed in Paragraph E, provision 2, of this CONTRACT. G. Hold Harmless 1. The GRANTEE shall waive all claims and recourse against the STATE including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this CONTRACT except claims arising from the concurrent or sole negligence of the STATE, its officers, agents, and employees. 2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, damages, costs, expenses or liability costs arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of the property described as the project which claims, demands or causes of action arise under California Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of the STATE, its officers, agents, or employees. 3. The GRANTEE agrees that in the event the STATE is named as codefendant under the provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the STATE of such fact and shall represent the STATE in the legal action unless the STATE undertakes to represent itself as codefendant in such legal action in which event the GRANTEE agrees to pay the STATE’s litigation costs, expenses, and reasonable attorney fees. 4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment. 5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, costs, expenses or liability costs arising out of legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE acknowledges that it is solely responsible for compliance with items to which it has certified. H. Financial Records 1. The GRANTEE shall maintain satisfactory financial accounts, documents, including loan documents, and all other records for the project and to make them available to the STATE for auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, documents and records for five years following project Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 177 of 828 5 termination or issuance of final payment, whichever is later. 2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost of the project in connection with such assistance that is given or used, (c) the amount and nature of that portion of the project cost supplied by other sources, and (d) any other such records that will facilitate an effective audit. 3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any books, records or reports pertaining to this contract or matters related thereto during regular office hours. The GRANTEE shall maintain and make available for inspection by the STATE accurate records of all of its costs, disbursements and receipts with respect to its activities under this contract. Such accounts, documents, and records shall be retained by the GRANTEE for at least five years following project termination or issuance of final payment, whichever is later. 4. The GRANTEE shall use a generally accepted accounting system. I. Use of Facilities 1. The GRANTEE agrees that the GRANTEE shall operate and maintain the property acquired or developed with the GRANT MONIES, for the duration of the Contract Performance Period. 2. The GRANTEE agrees that, during the Contract Performance Period, the GRANTEE shall use the property acquired or developed with GRANT MONIES under this contract only for the purposes of this grant and no other use, sale, or other disposition or change of the use of the property to one not consistent with its purpose shall be permitted except as authorized by the STATE and the property shall be replaced with property of equivalent value and usefulness as determined by the STATE. 3. The property acquired or developed may be transferred to another entity if the successor entity assumes the obligations imposed under this CONTRACT and with the approval of STATE. 4. Any real Property (including any portion of it or any interest in it) may not be used as security for any debt or mitigation, without the written approval of the STATE provided that such approval shall not be unreasonably withheld as long as the purposes for which the Grant was awarded are maintained. Any such permission that is granted does not make the STATE a guarantor or a surety for any debt or mitigation, nor does it waive the STATE’S rights to enforce performance under the Grant CONTRACT. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 178 of 828 6 5. All real property, or rights thereto, acquired with GRANT MONIES shall be subject to an appropriate form of restrictive title, rights, or covenants approved by the STATE. If the project property is taken by use of eminent domain, GRANTEE shall reimburse STATE an amount at least equal to the amount of GRANT MONIES received from STATE or the pro-rated full market value of the real property, including improvements, at the time of sale, whichever is higher. 6. If eminent domain proceedings are initiated against GRANTEE, GRANTEE shall notify STATE within 10 days of receiving the complaint. J. Nondiscrimination 1. The GRANTEE shall not discriminate against any person on the basis of sex, race, color, national origin, age, religion, ancestry, sexual orientation, or disability in the use of any property or facility developed pursuant to this contract. 2. The GRANTEE shall not discriminate against any person on the basis of residence except to the extent that reasonable differences in admission or other fees may be maintained on the basis of residence and pursuant to law. 3. All facilities shall be open to members of the public generally, except as noted under the special provisions of this project contract or under provisions of the enabling legislation and/or grant program. K. Severability If any provision of this CONTRACT or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of the CONTRACT which can be given effect without the invalid provision or application, and to this end the provisions of this CONTRACT are severable. L. Liability 1. STATE assumes no responsibility for assuring the safety or standards of construction, site improvements or programs related to the GRANT SCOPE. The STATE’S rights under this CONTRACT to review, inspect and approve the GRANT SCOPE and any final plans of implementation shall not give rise to any warranty or representation that the GRANT SCOPE and any plans or improvements are free from hazards or defects. 2. GRANTEE will secure adequate liability insurance, performance bond, and/or other security necessary to protect the GRANTEE’s and STATE’S interest against poor workmanship, fraud, or other potential loss associated with completion of the grant project. M. Assignability Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 179 of 828 7 Without the written consent of the STATE, the GRANTEE’S interest in and responsibilities under this CONTRACT shall not be assignable by the GRANTEE either in whole or in part. N. Use of Grant Monies GRANTEE shall not use any grant funds (including any portion thereof) for the purpose of making any leverage loan, pledge, promissory note or similar financial device or transaction, without: 1) the prior written approval of the STATE; and 2) any financial or legal interests created by any such leverage loan, pledge, promissory note or similar financial device or transaction in the project property shall be completely subordinated to this CONTRACT through a Subordination Agreement provided and approved by the STATE, signed by all parties involved in the transaction, and recorded in the County Records against the fee title of the project property. O. Section Headings The headings and captions of the various sections of this CONTRACT have been inserted only for the purpose of convenience and are not a part of this CONTRACT and shall not be deemed in any manner to modify, explain, or restrict any of the provisions of this CONTRACT. P. Waiver Any failure by a party to enforce its rights under this CONTRACT, in the event of a breach, shall not be construed as a waiver of said rights; and the waiver of any breach under this CONTRACT shall not be construed as a waiver of any subsequent breach. _City of Menifee____________________________________ GRANTEE By:__________________________________ Signature of Authorized Representative Title: _________________________________ Date: _________________________________ STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION By: _________________________________ Date: _________________________________ Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 180 of 828 State of California - Natural Resources Agency DEPARTMENT OF PARKS AND RECREATION GRANT CONTRACT 2018 Parks Bond Act Per Capita Grant Program GRANTEE THE PROJECT PERFORMANCE PERIOD is from Grantee The General and Special Provisions attached are made a part of and incorporated into the Contract. By Title Date (Signature of Authorized Representative) By Date STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION City of Menifee City of Menifee City Manager The GRANTEE agrees to the terms and conditions of this Contract, and the State of California, acting through its Director of the Department of Parks and Recreation, pursuant to the State of California, agrees to fund the total State grant amount indicated below. The GRANTEE agrees to complete the GRANT SCOPE(s) as defined in the GRANT SCOPE/Cost Estimate Form or acquisition documentation for the application(s) filed with the State of California. PROJECT NO. CERTIFICATION OF FUNDING AMOUNT ENCUMBERED BY THIS DOCUMENT CONTRACT NO FUND. PRIOR AMOUNT ENCUMBERED FOR THIS CONTRACT FISCAL SUPPLIER I.D. TOTAL AMOUNT ENCUMBERED TO DATE $ ITEM CHAPTER STATUTE FISCAL YEAR T.B.A. NO. B.R.. NO. Reporting Structured.Account/Alt Account. ACTIVITY CODE PROJECT / WORK PHASE I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance. ACCOUNTING OFFICER'S SIGNATURE DATE. 2020/21 C9802209 3790-101-6088 23 69803 Drought, Water, Cln Air, Cstl Protc, Outdoor Fund 37900091 5432000-5432000000 $57,123.00 0000013302 19 AMENDMENT NO $57,123.00 CONTRACT PERFORMANCE PERIOD is from July 01, 2018 through June 30, 2038 July 01, 2018 through June 30, 2024 18-33-005 Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 181 of 828 1 I. RECITALS This CONTRACT is entered into between the California Department of Parks and Recreation (hereinafter referred to as “GRANTOR,” “DEPARTMENT” or “STATE”) and City of Menifee (hereinafter referred to as “GRANTEE”). The DEPARTMENT hereby grants to GRANTEE a sum (also referred to as “GRANT MONIES”) not to exceed _$57,123___, subject to the terms and conditions of this AGREEMENT and the 2019/20 California State Budget, Chapter 23, statutes of 2019, Item number – 3790-101-6088 (appropriation chapter and budget item number hereinafter referred to as “PER CAPITA GRANT”). These funds shall be used for completion of the GRANT SCOPE(S). The Grant Performance Period is from _July 01, 2018_ to _June 30, 2024_. II. GENERAL PROVISIONS A. Definitions As used in this CONTRACT, the following words shall have the following meanings: 1. The term “ACT” means the California Drought, Water, Parks Climate, Coastal Protection, and Outdoor Access for All Act of 2018, as referred to in section I of this CONTRACT. 2. The term “APPLICATION” means the individual project APPLICATION packet for a project pursuant to the enabling legislation and/or grant program process guide requirements. 3. The term “DEPARTMENT” or “STATE” means the California Department of Parks and Recreation. 4. The term “DEVELOPMENT” means capital improvements to real property by means of, but not limited to, construction, expansion, and/or renovation, of permanent or fixed features of the property. 5. The term “GRANTEE” means the party described as the GRANTEE in Section I of this CONTRACT. 6. The term “GRANT SCOPE” means the items listed in the GRANT SCOPE/Cost Estimate Form or acquisition documentation found in each of the APPLICATIONS submitted pursuant to this grant. 7. The term “PROCEDURAL GUIDE” means the document identified as the “Procedural Guide for California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Act of 2018 Per Capita Program.” The Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 182 of 828 2 PROCEDURAL GUIDE provides the procedures and policies controlling the administration of the grant. B. Project Execution 1. Subject to the availability of GRANT MONIES, the STATE hereby grants to the GRANTEE a sum of money not to exceed the amount stated in Section I of this CONTRACT, in consideration of, and on condition that, the sum be expended in carrying out the purposes as set forth in the scope described in the enabling legislation and referenced in the APPLICATION, Section I of this CONTRACT, and under the terms and conditions set forth in this CONTRACT. The GRANTEE shall assume any obligation to furnish any additional funds that may be necessary to complete the GRANT SCOPE(S). The GRANTEE agrees to submit any change or alteration from the original GRANT SCOPE(S) in writing to the STATE for prior approval. This applies to any and all changes that occur after STATE has approved the APPLICATION. Changes in the GRANT SCOPE(S) must be approved in writing by the STATE. 2. The GRANTEE shall complete the GRANT SCOPE(S) in accordance with the time of the Performance Period set forth in Section I of this CONTRACT, and under the terms and conditions of this CONTRACT. 3. The GRANTEE shall comply with the California Environmental Quality Act (Public Resources Code, Section 21000, et seq., Title 14, California Code of Regulations, Section 15000 et seq.). 4. The GRANTEE shall comply with all applicable current laws and regulations affecting DEVELOPMENT projects, including, but not limited to, legal requirements for construction contracts, building codes, health and safety codes, and laws and codes pertaining to individuals with disabilities, including but not limited to the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and the California Unruh Act (California Civil Code §51 et seq.). C. Project Costs 1. GRANTEE agrees to abide by the PROCEDURAL GUIDE. 2. GRANTEE acknowledges that STATE may make reasonable changes to its procedures as set forth in the PROCEDURAL GUIDE. If STATE makes any changes to its procedures and guidelines, STATE agrees to notify GRANTEE within a reasonable time. D. Project Administration 1. If GRANT MONIES are advanced for DEVELOPMENT projects, the advanced funds shall be placed in an interest bearing account until expended. Interest earned on the advanced funds shall be used on the project as approved by the STATE. If grant monies are advanced and not expended, the unused portion of the Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 183 of 828 3 grant and any interest earned shall be returned to the STATE within 60 days after project completion or end of the Grant Performance Period, whichever is earlier. 2. The GRANTEE shall submit written project status reports within 30 calendar days after the STATE has made such a request. In any event, the GRANTEE shall provide the STATE a report showing total final project expenditures within 60 days of project completion or the end of the grant performance period, whichever is earlier. The Grant Performance Period is identified in Section I of this CONTRACT. 3. The GRANTEE shall make property or facilities acquired and/or developed pursuant to this contract available for inspection upon request by the STATE. E. Project Termination 1. Project Termination refers to the non-completion of a GRANT SCOPE. Any grant funds that have not been expended by the GRANTEE shall revert to the STATE. 2. The GRANTEE may unilaterally rescind this CONTRACT at any time prior to the commencement of the project. The commencement of the project means the date of the letter notifying GRANTEE of the award or when the funds are appropriated, whichever is later. After project commencement, this CONTRACT may be rescinded, modified or amended only by mutual agreement in writing between the GRANTEE and the STATE, unless the provisions of this CONTRACT provide that mutual agreement is not required. 3. Failure by the GRANTEE to comply with the terms of the (a) PROCEDURAL GUIDE, (b) any legislation applicable to the ACT, (c) this CONTRACT as well as any other grant contracts, specified or general, that GRANTEE has entered into with STATE, may be cause for suspension of all obligations of the STATE unless the STATE determines that such failure was due to no fault of the GRANTEE. In such case, STATE may reimburse GRANTEE for eligible costs properly incurred in performance of this CONTRACT despite non-performance of the GRANTEE. To qualify for such reimbursement, GRANTEE agrees to mitigate its losses to the best of its ability. 4. Any breach of any term, provision, obligation or requirement of this CONTRACT by the GRANTEE shall be a default of this CONTRACT. In the case of any default by GRANTEE, STATE shall be entitled to all remedies available under law and equity, including but not limited to: a) Specific Performance; b) Return of all GRANT MONIES; c) Payment to the STATE of the fair market value of the project property or the actual sales price, whichever is higher; and d) Payment to the STATE of the costs of enforcement of this CONTRACT, including but not limited to court and arbitration costs, fees, expenses of litigation, and reasonable attorney fees. 5. The GRANTEE and the STATE agree that if the GRANT SCOPE includes DEVELOPMENT, final payment may not be made until the work described in the GRANT SCOPE is complete and the GRANT PROJECT is open to the public. F. Budget Contingency Clause Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 184 of 828 4 If funding for any fiscal year is reduced or deleted by the budget act for purposes of this program, the STATE shall have the option to either cancel this contract with no liability occurring to the STATE, or offer a CONTRACT amendment to GRANTEE to reflect the reduced grant amount. This Paragraph shall not require the mutual agreement as addressed in Paragraph E, provision 2, of this CONTRACT. G. Hold Harmless 1. The GRANTEE shall waive all claims and recourse against the STATE including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this CONTRACT except claims arising from the concurrent or sole negligence of the STATE, its officers, agents, and employees. 2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, damages, costs, expenses or liability costs arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of the property described as the project which claims, demands or causes of action arise under California Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of the STATE, its officers, agents, or employees. 3. The GRANTEE agrees that in the event the STATE is named as codefendant under the provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the STATE of such fact and shall represent the STATE in the legal action unless the STATE undertakes to represent itself as codefendant in such legal action in which event the GRANTEE agrees to pay the STATE’s litigation costs, expenses, and reasonable attorney fees. 4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment. 5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, costs, expenses or liability costs arising out of legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE acknowledges that it is solely responsible for compliance with items to which it has certified. H. Financial Records 1. The GRANTEE shall maintain satisfactory financial accounts, documents, including loan documents, and all other records for the project and to make them available to the STATE for auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, documents and records for five years following project Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 185 of 828 5 termination or issuance of final payment, whichever is later. 2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost of the project in connection with such assistance that is given or used, (c) the amount and nature of that portion of the project cost supplied by other sources, and (d) any other such records that will facilitate an effective audit. 3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any books, records or reports pertaining to this contract or matters related thereto during regular office hours. The GRANTEE shall maintain and make available for inspection by the STATE accurate records of all of its costs, disbursements and receipts with respect to its activities under this contract. Such accounts, documents, and records shall be retained by the GRANTEE for at least five years following project termination or issuance of final payment, whichever is later. 4. The GRANTEE shall use a generally accepted accounting system. I. Use of Facilities 1. The GRANTEE agrees that the GRANTEE shall operate and maintain the property acquired or developed with the GRANT MONIES, for the duration of the Contract Performance Period. 2. The GRANTEE agrees that, during the Contract Performance Period, the GRANTEE shall use the property acquired or developed with GRANT MONIES under this contract only for the purposes of this grant and no other use, sale, or other disposition or change of the use of the property to one not consistent with its purpose shall be permitted except as authorized by the STATE and the property shall be replaced with property of equivalent value and usefulness as determined by the STATE. 3. The property acquired or developed may be transferred to another entity if the successor entity assumes the obligations imposed under this CONTRACT and with the approval of STATE. 4. Any real Property (including any portion of it or any interest in it) may not be used as security for any debt or mitigation, without the written approval of the STATE provided that such approval shall not be unreasonably withheld as long as the purposes for which the Grant was awarded are maintained. Any such permission that is granted does not make the STATE a guarantor or a surety for any debt or mitigation, nor does it waive the STATE’S rights to enforce performance under the Grant CONTRACT. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 186 of 828 6 5. All real property, or rights thereto, acquired with GRANT MONIES shall be subject to an appropriate form of restrictive title, rights, or covenants approved by the STATE. If the project property is taken by use of eminent domain, GRANTEE shall reimburse STATE an amount at least equal to the amount of GRANT MONIES received from STATE or the pro-rated full market value of the real property, including improvements, at the time of sale, whichever is higher. 6. If eminent domain proceedings are initiated against GRANTEE, GRANTEE shall notify STATE within 10 days of receiving the complaint. J. Nondiscrimination 1. The GRANTEE shall not discriminate against any person on the basis of sex, race, color, national origin, age, religion, ancestry, sexual orientation, or disability in the use of any property or facility developed pursuant to this contract. 2. The GRANTEE shall not discriminate against any person on the basis of residence except to the extent that reasonable differences in admission or other fees may be maintained on the basis of residence and pursuant to law. 3. All facilities shall be open to members of the public generally, except as noted under the special provisions of this project contract or under provisions of the enabling legislation and/or grant program. K. Severability If any provision of this CONTRACT or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of the CONTRACT which can be given effect without the invalid provision or application, and to this end the provisions of this CONTRACT are severable. L. Liability 1. STATE assumes no responsibility for assuring the safety or standards of construction, site improvements or programs related to the GRANT SCOPE. The STATE’S rights under this CONTRACT to review, inspect and approve the GRANT SCOPE and any final plans of implementation shall not give rise to any warranty or representation that the GRANT SCOPE and any plans or improvements are free from hazards or defects. 2. GRANTEE will secure adequate liability insurance, performance bond, and/or other security necessary to protect the GRANTEE’s and STATE’S interest against poor workmanship, fraud, or other potential loss associated with completion of the grant project. M. Assignability Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 187 of 828 7 Without the written consent of the STATE, the GRANTEE’S interest in and responsibilities under this CONTRACT shall not be assignable by the GRANTEE either in whole or in part. N. Use of Grant Monies GRANTEE shall not use any grant funds (including any portion thereof) for the purpose of making any leverage loan, pledge, promissory note or similar financial device or transaction, without: 1) the prior written approval of the STATE; and 2) any financial or legal interests created by any such leverage loan, pledge, promissory note or similar financial device or transaction in the project property shall be completely subordinated to this CONTRACT through a Subordination Agreement provided and approved by the STATE, signed by all parties involved in the transaction, and recorded in the County Records against the fee title of the project property. O. Section Headings The headings and captions of the various sections of this CONTRACT have been inserted only for the purpose of convenience and are not a part of this CONTRACT and shall not be deemed in any manner to modify, explain, or restrict any of the provisions of this CONTRACT. P. Waiver Any failure by a party to enforce its rights under this CONTRACT, in the event of a breach, shall not be construed as a waiver of said rights; and the waiver of any breach under this CONTRACT shall not be construed as a waiver of any subsequent breach. _City of Menifee____________________________________ GRANTEE By:__________________________________ Signature of Authorized Representative Title: _________________________________ Date: _________________________________ STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION By: _________________________________ Date: _________________________________ Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 188 of 828 RESOLUTION NO. 21- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING THE FISCAL YEAR 2020/21 OPERATING BUDGET WHEREAS, the City of Menifee, California adopted a budget for the fiscal year 2020/21 with Resolution No. 20-916 on June 3rd, 2020; and WHEREAS, the City of Menifee does from time to time have unanticipated expenditures arise; and WHEREAS, it is in the best interest of the citizens of the City of Menifee to allocate budget resources to continue the operations of the City of Menifee; and WHEREAS, the City Council of the City of Menifee needs to amend the fiscal year 2020/21 budget as follows: AMENDMENTS TO ADOPTED BUDGET: Grant Fund Adopted FY 2020/21 Revenue Budget: $0 CITY COUNCIL MEETING DESCRIPTION ACCOUNT #AMOUNT August 19, 2020 CalRecycle Beverage Container Recycling Grant 301-3848 23,125 August 19, 2020 CARES Act Funds 301-3740 1,198,820 September 2, 2020 OTS Grant (STEP)301-3865 115,000 October 21, 2020 Various Grants (Budget Carry Over) 301-XXXX 3,336,702 November 4, 2020 K9 Grant 301-3867 250 January 20, 2021 Prop. 68 Per Capita Grant (CIP 20-09) 301-3741 235,075 TOTAL:$4,908,972 Amended Grant Fund FY 2020/21 Revenue Budget: $4,908,972 Grant Fund Adopted FY 2020/21 Expenditure Budget: $0 2. Record Appropriation(s): CITY COUNCIL MEETING DESCRIPTION ACCOUNT #AMOUNT August 5, 2020 CalRecycle Beverage Container Recycling Grant 301-4550-52425 23,125 August 19, 2020 Emergency Declaration Expenses (CARES) 301-4221-52214 1,098,820 August 19, 2020 Small Business Assistance Grant Program 301-4221-52215 100,000 September 2, 2020 OTS Grant (STEP)301-4911-52426 115,000 Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 189 of 828 Amending the Fiscal Year 2020/21 Grant Fund Budget 2 8 7 October 21, 2020 Various Grants (Budget Carry Over) 301-xxxx-xxxxx 2,756,110 November 4, 2020 K9 Grant (K-9 Supplies) 301-4911-52753 250 January 20, 2021 Prop. 68 Per Capita Grant (CIP 20-09) 301-4660-58092 235,075 TOTAL:$4,328,380 Amended Grant Fund FY 2020/21 Expenditure Budget: $4,328,380 3. Record Transfer of Funds: FROM ACCOUNT #TO ACCOUNT #AMOUNT TOTAL:0 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS: The annual budget for the Grant Fund for the City of Menifee for fiscal year 2020/21 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows: Revenues: Prop. 68 Per Capital Grant (CIP 20-09) 235,075 Amended Grant Fund FY 2020/21 Budget $4,908,972 Expenditures: Prop. 68 Per Capital Grant (CIP 20-09) 235,075 Amended Grant Fund FY 2020/21 Budget: $4,328,380 PASSED, APPROVED AND ADOPTED this 20th day of January 2021. _____________________________ Bill Zimmerman, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ Sarah A. Manwaring, City Clerk Jeffrey T. Melching, City Attorney Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 190 of 828 FISCAL YEAR OF GRANT AWARD:2020/2021 DATE CITY COUNCIL APPROVED:1/20/2021 RELATED RESOLUTION #(s): City Department: Community Services City Grant Administrator: Federal Awarding Agency: Federal CFDA No:N/A through Agency/Awarding Agency:State of California- Department of Parks and Recreation Pass-through No. :N/A Grant Name from Agency:Funding Period:7/1/18 - 6/30/24 N/AReporting Requirements: Written project status reports within 30 calendar days after the State has made such r request. The Grantee shall provide the State with a report showing total final project expenditures within 60 days of project completion/grant performance whichever is earlier. (Example: Report to pass-through agency quarterly.) Type of Grant:State Reimbursement If Other (please describe):Other As needed Amount from Granting Agency:$177,952.00 City Matching Funds:$0.00 N/A Total Grant Amount:$177,952.00 City Expenditure Account Number: 301-4660-58092 City Revenue Account Number: 301-3741 Does the funding agency require a compliance audit?No If yes, what kind of report? N/AAdditional reporting required: Does the funding agency require a copy of the Single Audit report?No Is this a federal grant (subject to Single Audit)?No Can grant funds be carried over to other fiscal years?Yes If yes, which years?:2020-2024 No City Program and/or Purpose of Grant: If Other (please describe): No Is allocated interest a grant requirement? CIP20-09 Sports Field Lighting at Centennial Park. (Example: Certain Percentage of Amount from Granting Agency) (If new or unknown, contact Finance Department) CITY OF MENIFEE GRANT SUMMARY REPORT Mariana Mitchell N/A TBD FINANCE DEPARTMENT Amended Through: Additional Description: If Other (please describe): Prop. 68 Per Capita Funding Grants Method of Funding: Frequency of Funding: This Report is to be completed for each approved grant, and forwarded along with approved Council Agenda staff report to the Finance Department. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 191 of 828 FISCAL YEAR OF GRANT AWARD:2020/2021 DATE CITY COUNCIL APPROVED:1/20/2021 RELATED RESOLUTION #(s): City Department: Community Services City Grant Administrator: Federal Awarding Agency: Federal CFDA No:N/A through Agency/Awarding Agency:State of California- Department of Parks and Recreation Pass-through No. :N/A Grant Name from Agency:Funding Period:7/1/18 - 6/30/24 N/AReporting Requirements: Written project status reports within 30 calendar days after the State has made such r request. The Grantee shall provide the State with a report showing total final project expenditures within 60 days of project completion/grant performance whichever is earlier. (Example: Report to pass-through agency quarterly.) Type of Grant:State Reimbursement If Other (please describe):Other Amount from Granting Agency:$57,123.00 City Matching Funds:$0.00 N/A Total Grant Amount:$57,123.00 City Expenditure Account Number: 301-4660-58092 City Revenue Account Number: 301-3741 Does the funding agency require a compliance audit?No If yes, what kind of report? N/AAdditional reporting required: Does the funding agency require a copy of the Single Audit report?No Is this a federal grant (subject to Single Audit)?No Can grant funds be carried over to other fiscal years?Yes If yes, which years?:2020-2024 No City Program and/or Purpose of Grant: Amended Through: Additional Description: If Other (please describe): Prop. 68 Per Capita Funding Grants / Urban County Per Capita Method of Funding: Frequency of Funding: CITY OF MENIFEE GRANT SUMMARY REPORT Mariana Mitchell N/A TBD FINANCE DEPARTMENT If Other (please describe): No Is allocated interest a grant requirement? CIP20-09 Sports Field Lighting at Centennial Park. (Example: Certain Percentage of Amount from Granting Agency) (If new or unknown, contact Finance Department) This Report is to be completed for each approved grant, and forwarded along with approved Council Agenda staff report to the Finance Department. As neededer Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 192 of 828 ©2016 Musco Sports Lighting, LLC - 1 - M-2038-enUS-2 Quote Centennial Park Lighting Project Menifee, CA To: Mr. Bryce Howell August 18, 2020 Quote Price – Centennial Park Baseball #1, Baseball #2, and Soccer with Installation Services) Musco’s Light-Structure System™ with Total Light Control – TLC for LED® technology as described below, and delivered to the job site: Baseball #1, Baseball #2, and Soccer with MuscoVision: $730,000.00 Sales tax, bonding, and unloading of the equipment are not included. Pricing furnished is effective for 120 days unless otherwise noted and is considered confidential. Equipment Description – Baseball #1, Baseball #2, and Soccer Musco’s Light Structure System™ in 5 Easy Pieces™ – complete from foundation to pole-top • (15) Pre-cast concrete bases- A1, A2, A3, A4, B1, B2, B3, B4, C1, C2, C3, C4, S1, S2, S3, S4 • (13) 70’ Galvanized steel poles- A1, A2, A3, A4, B1, B2, B3, B4, C1, C2, S1, S2, S3, S4 • (2) 60’ Galvanized steel poles- C3, C4 • Remote electrical component enclosures • Pole length wire harnesses • (25) TLC LED 900 Factory-aimed and assembled luminaries • (39) TLC LED 1200 Factory-aimed and assembled luminaries • (12) TLC LED 400 Factory-aimed and assembled luminaries • (12) TLC LED 575 Ball Tracker Luminaires Control System • Control-Link® System for remote on/off control and performance monitoring with 24/7 customer support/ • (2) 24” x 72” Control and Monitoring Cabinet (CMC) mounted in Field Lighting Electrical Enclosure, or other. • Include 120v Control Circuit from 120v Panel for Musco lighting controller. • Dimming High/Medium/Low for Soccer included (this will require (1) 20 amp 3phase circuit from distribution panel to Musco’s Control and Monitoring Cabinet). Operation and Warranty Services • Reduction of energy and maintenance costs by 50% to 85% over typical 1500W metal halide equipment • Product assurance and warranty program that covers materials and onsite labor, eliminating 100% of your maintenance costs for 25 years Possible bedrock conditions, please see Construction Note #1, #2, and #3 for information on additional services. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 193 of 828 ©2016 Musco Sports Lighting, LLC - 2 - M-2038-enUS-2 Quote MuscoVision (2) Baseball Fields- 2 camera’s with automatic camera switching for each field. (1) Soccer Field- 1 camera with automatic game tracking for the field. Includes: All Required Network Enclosures and Components MuscoVision Portal Live & On Demand Video Streaming Downloads Available via Apple TV, Roku, Amazon Fire TV, Android TV Apps Control-Link Access for schedule broadcast 24/7 phone support Freight – Included on the entire project. City of Menifee Revenue Share: 70% of all pay per view, on-demand, and download revenue. MuscoVision Warranty Five years parts and labor Notes: Broadcasted events will be stored online for a period of 3 months. Payment Terms As agreed upon with Musco Credit Department If a cooperative purchase agreement option is required, please see the below Sourcewell information below: Sourcewell Master Project: 199030, Contract Number: 071619-MSL, Expiration: 08/27/2023 Category: Sports lighting with related supplies and services All purchase orders should note the following: Sourcewell purchase – contract number: 071619-MSL Notes Budget Estimate is based on: • Shipment of entire project together to one location. Baseball 1 / 2 – 260’ R, Soccer 300’x180’. • 208v Phase electrical system requirement- To be confirmed. • Structural code and wind speed = 95mph, CBC 2019. • Structural Engineering / Pole Calculations stamped by a CA Structural Engineer. Ready to submit to design professional in charge. Construction Note #1: It is highly recommended that a soil report be performed with borings on site to understand if there are any rock formations encountered at the designed pole location. It is anticipated that each light pole foundation will embed 14-18’ underground, with an estimated hole size of 30” - 36”. Please see the Soil Report Document attached with this budget estimate. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 194 of 828 ©2016 Musco Sports Lighting, LLC - 3 - M-2038-enUS-2 Quote Construction Note #2: Soil Conditions- Musco / Ace Electric can provide additional services to provide a 4” rock drill at each pole location to determine if rock is present. Adder: $7,000.00 Construction Note #3: Rock Drilling will take place as a fixed price, plus Time, and Material. If rock is present that can not be drilled with conventional equipment then we would propose to drill 4” perimeter holes that are 8” off center to ease core barrel drilling, and then propose to drill center relief holes at 12” off center. When complete, core barrel drilling will commence. Time and material for each operation at each hole as required. Replace drill teeth on core barrel as necessary to continue operation. Pricing will have to be discussed if rock drilling is necessary. Construction Note #4: Electrical distribution design, lighting control design to be coordinated with Project Electrical Engineer. Musco has provided Lighting Control as part of this budget estimate. Construction Note #5: No Pole Attachments Delivery to the job site for projects can vary from 6-8 weeks. Musco must have the following information in order to schedule production of a project: 1. Approved Submittals 2. Confirmation of order details including voltage/phase and pole locations. (Due to the built-in custom light control per luminaire, pole locations need to be confirmed prior to production. Changes to pole locations after the product is sent to production could result in additional charges.) Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:27 Menifee Mayor and City Council January 20,2021 Page 195 of 828 ©2016 Musco Sports Lighting, LLC - 4 - M-2038-enUS-2 Quote Centennial Park Menifee, CA Turnkey Scope of Work Customer Responsibilities: 1. Complete access to the site for construction using standard 2-wheel drive rubber tire equipment. 2. Locate existing underground utilities not covered by your local utilities. (i.e. water lines, electrical lines, irrigation systems, and sprinkler heads). Musco or Subcontractor will not be responsible for repairs to unmarked utilities. 3. Stop irrigation prior to the start of work and throughout construction in work areas. 4. Locate and mark field reference points per Musco supplied layout. (i.e. home plate, center of soccer field) 5. Pay for extra costs associated with foundation excavation in non-standard soils (rock, caliche, high water table, collapsing holes, etc.) or soils not defined in geo-technical report. Standard soils are defined as soils that can be excavated using standard earth auguring equipment. 6. Pay any necessary power company fees and requirements. 7. Pay all permitting fees. 8. Provide area on site for disposal of spoils from foundation excavation. 9. Provide area on site for dumpsters and storage containers. 10. Provide electrical engineering- Coordinate with Musco Lighting, and Ace Electric 11. Provide sealed Electrical Plans. (If required) Musco Vision System requirements. Internet Service Information 12. Minimum bandwidth (upload) 10 Mbps one field, 5 Mbps each additional field. 13. Data Connection Type RJ45 14. Dedicated Service. The Musco Vision Automated Sports Broadcasting System must be on a separate port from all existing and future on-site networks. If the internet service includes a modem, use a second modem in bridge mode for the Musco Vision network. The Musco Vision network includes a firewall/gateway. Musco Responsibilities: 1. Provide required foundations, poles, electrical enclosures, luminaires, pole harnesses, and control cabinets. 2. Provide layout of pole locations and aiming diagram. 3. Provide Project Management as required. 4. Provide stamped foundation designs based on soils defined in the geotechnical report. 5. Assist our installing subcontractor and ensure our responsibilities are satisfied. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:28 Menifee Mayor and City Council January 20,2021 Page 196 of 828 ©2016 Musco Sports Lighting, LLC - 5 - M-2038-enUS-2 Quote Musco Subcontractor Responsibilities General: 1. Provide labor, equipment, and materials to off load equipment at jobsite per scheduled delivery. 2. Provide storage containers for material, (including electrical components enclosures), as needed. 3. Provide necessary waste disposal and daily clean up. 4. Provide adequate security to protect Musco delivered products from theft, vandalism or damage during the installation. 5. Obtain any required permitting. 6. Confirm the existing underground utilities and irrigation systems have been located and are clearly marked in order to avoid damage from construction equipment. Repair any such damage during construction. 7. Keep all heavy equipment off playing fields when possible. Repair damage to grounds which exceeds that which would be expected. Indentations caused by heavy equipment traveling over dry ground would be an example of expected damage. Ruts and sod damage caused by equipment traveling over wet grounds would be an example of damage requiring repair. 8. Provide startup and aiming as required to provide complete and operating sports lighting system. 9. Installation to commence upon delivery and proceed without interruption until complete. Musco to be immediately notified of any breaks in schedule or delays. Foundations, Poles, and Luminaires: 1. Mark and confirm pole locations per the aiming diagram provided. If there are any issues, immediately notify your Musco Project Manager. 2. Provide labor, materials, and equipment to install 16 LSS foundations as specified on Layout and per the stamped foundation drawings, if applicable. Concrete pumping as necessary. 3. Repair chain link fence at C2 pole location. 4. Remove spoils and dispose of offsite. 5. Provide labor, materials, and equipment to assemble Musco TLC-LED luminaires, electrical component enclosures, poles, and pole harnesses. 6. Provide labor, equipment, and materials to erect 16 dressed LSS Poles and aim utilizing the pole alignment beam. Electrical: 1. Provide labor, materials, and equipment to install new 400amp 208-volt electrical service panels as required. 2. Provide labor, materials and equipment to install (2) enclosures for the Musco Controls and Monitoring Cabinets 3. Provide labor, materials, and equipment to reuse existing electrical wiring as permitted. Extend conduit as needed based on light pole locations. 4. Relocate existing pull box at the pole S2 location approx 20’ to the West out of the low area that is subject to flooding. 5. Provide as-built drawings on completion of installation, (if required). Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:29 Menifee Mayor and City Council January 20,2021 Page 197 of 828 ©2016 Musco Sports Lighting, LLC - 6 - M-2038-enUS-2 Quote Control System: 1. Provide labor, equipment, and materials to install (2) Musco Control and Monitoring cabinets and terminate all necessary wiring. 2. Provide a dedicated 120 V 20 A controls circuit or a step-down transformer for 120 V control circuit if not available. 3. Provide a dedicated 20 A breaker connected to all available phases for powerline communication. 4. Check all zones to make sure they work in both auto and manual mode. 5. Commission Control-Link® by contacting Control Link Central™ at 877-347-3319. Musco Vision: 1. Backstop Field #1 camera – POE / Communication cabling through existing conduit. Pull two feeds from the electrical room to the backstop for Camera power/network. Install camera on backstop. Install new conduit between end of existing conduit up to the camera. 2. Backstop Field #2 camera. Install (1) 120v circuit from existing panel using existing conduit from electrical room to backstop outlet. Communication by Pt to Pt radio. Install camera on backstop. Conduit from existing 120v outlet to camera. Rework outlet as needed. 3. Outfield camera poles for Fields #1 and #2. Install (2) 14’ fiberglass poles (4’ x 8” hole backfilled with 2- part expanding foam (provided by Musco) or concrete (provided by contractor). Install Musco Vision camera and enclosure on the poles. Terminate all necessary wiring. 4. Soccer camera and pole. Install Musco precast concrete base (1,000 pounds). Install Musco 30’ steel pole (300 pounds) on base. Install Musco Vision camera and enclosure on pole. Terminate all necessary wiring. 5. 120v circuits (3) - Outfield Camera Field #1, Outfield Camera Field #2, and Soccer. Pull 120v and 208v 3p wiring through the existing conduit out to the closest light pole and extend trenching/conduit/120v feeder to applicable camera. 6. Install antenna on roof structure for Pt to Pt communication with Field #2, and Soccer Camera. 7. Install (2) 16” x 32” Communication Cabinets (Networking Cabinet, and Musco Vision Cabinet) 8. (1)-120v circuit required from existing panel to the Networking and Musco Vision cabinets mounted in the electrical room. 9. Commission Musco Vision system with Musco Project Manager and Control Link. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:30 Menifee Mayor and City Council January 20,2021 Page 198 of 828 ©2016 Musco Sports Lighting, LLC - 7 - M-2038-enUS-2 Quote CODE OF CONDUCT In order to maintain a high-quality jobsite and installation, Subcontractor represents to Musco that it has the supervision necessary to, and shall train, manage, supervise, monitor, and inspect the activities of its employees for the purpose of enforcing compliance with these safety requirements. Subcontractor acknowledges that Musco does not undertake any duty toward Subcontractor’s employees to train, manage, supervise, monitor, and inspect their work activities for the purpose of enforcing compliance with these safety requirements, but Subcontractor agrees to abide by any reasonable recommendations made by Musco or Musco representatives with respect to safety. Subcontractor agrees that it is or will be familiar with and shall abide by the safety rules and regulations of Musco and the Owner, including, but not limited to the Occupational Safety and Health Act of 1970 (OSHA), all rules and regulations established pursuant thereto, and all amendments and supplements thereto. Subcontractor further agrees to require all its employees, subcontractors, and suppliers to comply with these requirements. Subcontractor shall also observe and comply with all laws with respect to environmental protection applicable to the Project. Subcontractor shall require all its subcontractors, employees, visitors, suppliers, and agents under its direction to comply with the following: 1. GENERAL JOBSITE SAFETY AND CLEANLINESS. a. Subcontractor’s employees and agents shall be required to wear appropriate personal protective equipment including, but not limited to, safety glasses with side shields, work shoes, fall protection devices, and hard hats. b. Where a walking or working surface has an unprotected side or edge which is six feet or more above a lower level, Subcontractor shall use guardrail systems, safety net systems, or personal fall arrest systems. c. Jobsite shall be kept free of debris including, but not limited to, cardboard and packing materials which can become windborne. d. Construction equipment shall be parked during non-use in an orderly fashion so as not to create inconvenience to others using the jobsite. e. Subcontractor shall provide for and ensure the use of safety equipment for the Project in accordance with Musco’s and Owner’s safety requirements, to the extent these may be stricter than federal, state, or local standards, or generally recognized industry applicable standards. f. Subcontractor shall provide the Musco project manager with an “Emergency List” showing Subcontractor’s designated medical doctor, hospital, insurance company, and any other health service providers, such list to be updated within 24 hours of any change in the information provided. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:31 Menifee Mayor and City Council January 20,2021 Page 199 of 828 ©2016 Musco Sports Lighting, LLC - 8 - M-2038-enUS-2 Quote g. Within eight (8) hours from the time of an accident (or such shorter period as laws may require), Subcontractor shall advise Musco of any accident resulting in injury to any person or damage to any equipment or facility. Upon request, Subcontractor shall promptly furnish Musco with a written report of any such accident as well as a copy of all insurance and worker’s compensation claims involving the Project. h. Subcontractor shall maintain and inspect all construction equipment, including cranes and other lifting equipment, prior to each use. Subcontractor warrants that all equipment operators shall be qualified for each piece of construction equipment they intend to operate. Documentation of specific training is the responsibility of the Subcontractor. i. Jobsite shall be policed daily for compliance to the above conditions. j. Subcontractor’s employees and agents are prohibited from using drugs and alcohol on the Project property or being under the influence of alcohol or drugs while performing work on the Project. Anyone observed participating in or observed under the influence will be removed from the Project immediately and prohibited from returning, with no exceptions. 2. CONFORMANCE TO STANDARD MUSCO INSTALLATION GUIDELINES. a. Review and understand installation instructions are provided with every product installation. b. Education of installation personnel to allow for highest efficiency and lowest possibility of failure. c. Verify that components have been assembled per Musco installation instructions. d. Verify plumb of concrete foundations prior to standing of poles. 3. PROVIDING A QUALITY INSTALLATION TEAM. a. Subcontractor’s work directly reflects the quality of the installation and may indirectly relate to the quality of the product upon which Musco’s reputation is built. b. Provide and maintain quality installation equipment. Records of maintenance and/or calibration shall be provided upon request. c. Personnel shall be knowledgeable in operation of equipment as well as installation of Musco product. d. All personnel provided by Subcontractor shall understand the relationship developed by and between Subcontractor and Musco, also by and between Musco and the customer, and act accordingly. Thank you for considering Musco for your sports lighting needs. Please contact me with any questions. Mike Higgins Musco Sports Lighting, LLC Phone: 800-659-0117x6121 Mobile: 714-614-9863 E-mail: Mike.Higgins@Musco.com Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:32 Menifee Mayor and City Council January 20,2021 Page 200 of 828 2671/031858-0001 7630667.2 a05/31/18 Exhibit A CONTRACT SERVICES AGREEMENT FOR CITY OF MENIFEE CIP 20-09 (CS015): CENTENNIAL PARK LIGHTING PROJECT THIS CONTRACT SERVICES AGREEMENT (“Agreement”) is made and effective this ___day of _____, 20_____ by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and MUSCO SPORTS LIGHTING, LLC, an Iowa Corporation (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”. R E C I T A L S A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article 1 of this Agreement. B. Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by City to perform those services. C. Pursuant to the City of Menifee’s Municipal Code, City has authority to enter into this Contract Services Agreement and the City Manager has authority to execute this Agreement. D. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows: ARTICLE 1. SERVICES OF CONTRACTOR. 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contractor shall provide those services specified in the Contract Documents and Specifications for the CIP 20-09 (CS015): CENTENNIAL PARK LIGHTING PROJECT, Project No. CIP 20- 09 (CS015): CENTENNIAL PARK LIGHTING PROJECT(“Bid Specifications”) attached hereto as Exhibit B and incorporated herein by this reference, which services may be referred to herein as the “Services.” As a material inducement to City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Contractor shall at all times faithfully, competently, and to the best of its ability, experience, and talent, perform all Services described herein. Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:33 Menifee Mayor and City Council January 20,2021 Page 201 of 828 2671/031858-0001 7630667.2 a05/31/18 -2- the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. 1.2 Contractor’s Proposal. The “Scope of Services” shall include Contractor’s scope of work or bid which is attached as Exhibit C and incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. Contractor and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Contractor shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Any and all work subject to prevailing wages, as determined by the Director of Industrial Relations of the State of California, will be the minimum paid to all laborers, including Contractor’s employee and subcontractors. It is understood that it is the responsibility of Contractor to determine the correct scale. The State Prevailing Wage Rates may be obtained from the California Department of Industrial Relations (“DIR”) pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415- 703-4774. Appropriate records demonstrating compliance with such requirement shall be maintained in a safe and secure location at all times, and readily available at City’s request. Contractor shall indemnify, defend, and hold City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers harmless from and against any liability, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by Contractor or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Contractor or any party performing the Services to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all public works (as defined by applicable law), Contractor shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors. 1.4 Licenses, Permits, Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement. Contractor and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services required by this Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:34 Menifee Mayor and City Council January 20,2021 Page 202 of 828 2671/031858-0001 7630667.2 a05/31/18 -3- Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against City hereunder. In addition to the foregoing, Contractor and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City. 1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the Scope of Services to be performed, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Services hereunder. Should Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform City of such fact and shall not proceed until written instructions are received from the Contract Officer. 1.6 Care of Services. Contractor shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. 1.7 Warranty. Contractor warrants all work under this Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one (1) year (or the period of time specified elsewhere in this Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by City of any defect in the work or non-conformance of the work to this Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by Contractor’s defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of City, regardless of whether or not such warranties and guarantees have been transferred or assigned to City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of City. In the event that Contractor fails to perform its obligations under this Section, Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:35 Menifee Mayor and City Council January 20,2021 Page 203 of 828 2671/031858-0001 7630667.2 a05/31/18 -4- or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of City, City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse City for any expenses incurred hereunder upon demand. This provision may be waived in Exhibit A if the services hereunder do not include construction of any improvements or the supplying of equipment or materials. 1.8 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 1600, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is ONE THOUSAND DOLLARS ($1,000) or more, Contractor agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. A copy of the general prevailing wage rate determination is on file in the Office of the City Clerk and is hereby incorporated in this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contractor’s principal place of business and at the project site. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contractor must forfeit to City TWENTY FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contractor does not pay overtime. Contractor shall defend (with counsel selected by City), indemnify, and hold City, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 1.9 Further Responsibilities of Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither Party shall be responsible for the service of the other. 1.10 Additional Services. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to, or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Officer to Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. Any increase in compensation of up to five percent (5%) of the Contract Sum or TWENTY-FIVE THOUSAND DOLLARS ($25,000), whichever is less; or in the time to perform of up to one hundred eighty (180) days may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively must be approved by the City Council of City. It is expressly understood by Contractor that the provisions of this Section shall not apply to work specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:36 Menifee Mayor and City Council January 20,2021 Page 204 of 828 2671/031858-0001 7630667.2 a05/31/18 -5- hereby acknowledges that it accepts the risk that the Services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefore. 1.11 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit A and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit A and any other provisions of this Agreement, the provisions of Exhibit A shall govern. ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT. 2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in the Bid Specifications and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Seven Hundred Thirty Thousand Dollars and Zero Cents ($730,000.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10. 2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with specified tasks or the percentage of completion of the Services, (iii) payment for time and materials based upon Contractor’s rates as specified in the “Schedule of Compensation” in the Bid Specifications, and incorporated herein by this reference, provided that time estimates are provided for the performance of subtasks, but not exceeding the Contract Sum, or (iv) such other methods as may be specified in the Schedule of Compensation. 2.3 Reimbursable Expenses. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by City. Coordination of the performance of the Services with City is a critical component of the Services. If Contractor is required to attend additional meetings to facilitate such coordination, Contractor shall not be entitled to any additional compensation for attending said meetings. 2.4 Invoices. Each month Contractor shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub- contractor contracts. Subcontractor charges shall also be detailed by such categories. City shall independently review each invoice submitted by Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, or as provided in Section 7.3, City will use its best efforts to cause Contractor to be paid within forty-five (45) days of receipt of Contractor’s correct and undisputed Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:37 Menifee Mayor and City Council January 20,2021 Page 205 of 828 2671/031858-0001 7630667.2 a05/31/18 -6- invoice. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission. Invoices shall be submitted to: City of Menifee Attn: Accounts Payable 29844 Haun Road Menifee, CA 92586 2.5 Annual Appropriation of Funding. In accord with Article 16 Section 18 of the California Constitution, payment of compensation under this Agreement is contingent upon annual appropriation of funds by City for that purpose. Contractor acknowledges and agrees that to the extent that the Services provided under this Agreement extend beyond one (1) fiscal year, payment for such Services is expressly conditioned on City’s annual appropriation of funds for such Services for each year. If no funds are appropriated then this Agreement shall be terminated. City pledges and agrees to process such appropriation requests annually and in good faith. Nothing in this Section shall be construed to limit the right of either Party to terminate this Agreement as provided herein. 2.6 Waiver. Payment to Contractor for Services performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor. ARTICLE 3. PERFORMANCE SCHEDULE. 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Contractor shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the “Time Limits of Work” in the Bid Specifications, and incorporated herein by this reference (“Schedule of Performance”). When requested by Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively. 3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:38 Menifee Mayor and City Council January 20,2021 Page 206 of 828 2671/031858-0001 7630667.2 a05/31/18 -7- Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section. 3.4 Inspection and Final Acceptance. City may inspect and accept or reject any of Contractor’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Contractor’s work within forth five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud, and such gross mistakes as amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Article 5, pertaining to indemnification and insurance, respectively. 3.5 Term. The term of this Agreement shall begin on January 20, 2021. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until final approval and acceptance of the project by the Contract Officer. ARTICLE 4. COORDINATION OF WORK 4.1 Representatives and Personnel of Contractor. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: (Name) (Title) (Name) (Title) (Name) (Title) It is expressly understood that the experience, knowledge, capability, and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the Services required under this Agreement. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the Services required under this Agreement, prior to and during any such performance. 4.2 Status of Contractor. Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt, or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:39 Menifee Mayor and City Council January 20,2021 Page 207 of 828 2671/031858-0001 7630667.2 a05/31/18 -8- otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s officers, employees, or agents are in any manner officials, officers, employees, or agents of City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contractor expressly waives any claim Contractor may have to any such rights. 4.3 Contract Officer. The “Contract Officer” shall be such person as may be designated by the City Manager of City. It shall be Contractor’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contractor, its agents, or employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision, or control of Contractor’s employees, servants, representatives, or agents, or in fixing their number, compensation, or hours of service. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor. 4.5 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contractor, its principals, and employees were a substantial inducement for City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Contractor or any surety of Contractor of any liability hereunder without the express consent of City. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:40 Menifee Mayor and City Council January 20,2021 Page 208 of 828 2671/031858-0001 7630667.2 a05/31/18 -9- 4.6 Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities. Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities. 4.7 Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply. (a) Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement. (b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.10 of this Agreement. (c) That, in the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties. 4.8 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:41 Menifee Mayor and City Council January 20,2021 Page 209 of 828 2671/031858-0001 7630667.2 a05/31/18 -10- ARTICLE 5. INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance Coverage. Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees, and agents of City: (a) Comprehensive General Liability Insurance (Occurrence Form CG0001 or equivalent). A policy of comprehensive general liability insurance written on a per occurrence basis for bodily injury, personal injury, and property damage. Claims-made, modified, limited, or restricted occurrence forms are not acceptable without prior written consent from City. The policy of insurance shall be in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, TWO MILLION DOLLARS ($2,000,000.00) in the general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. The general aggregate limit shall apply separately to the Services to be performed under this Agreement. The policy definition of “insured contract” shall include assumptions of liability arising out of both ongoing operations and products-completed operations hazard as set forth in “f” definition in form CG 0001, or equivalent. The policy must cover inter-insured suits and include a “Separation of Insureds” or “severability” clause which treats each insured separately. The insurance must be maintained for at least one (1) year following the completion of the Services or the expiration or termination of this Agreement. (b) Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California, including Section 3700 of the California Labor Code, and which shall indemnify, insure, and provide legal defense for both Contractor and City against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Contractor in the course of carrying out the Services contemplated in this Agreement. The worker’s compensation policy of insurance shall be in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. (c) Automotive Insurance (Form CA 0001 (Ed 1/87) including “any auto” and endorsement CA 0025 or equivalent). A policy of comprehensive automobile liability insurance written on a per occurrence for bodily injury and property damage in an amount not less than ONE MILLION DOLLARS ($1,000,000.00). Said policy shall include coverage for owned, non- owned, leased, and hired cars. (d) Professional Liability. Professional liability insurance appropriate to Contractor’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to the Services Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:42 Menifee Mayor and City Council January 20,2021 Page 210 of 828 2671/031858-0001 7630667.2 a05/31/18 -11- performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of the Services or the expiration or termination of this Agreement. During this additional five (5)-year period, Contractor shall annually and upon request of City submit written evidence of this continuous coverage. (e) Pollution Liability. A policy of pollution liability insurance written on a per occurrence for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per pollution incident and ONE MILLION DOLLARS ($1,000,000.00) in the general aggregate. The policy shall apply to any incidents at or from any location on which Contractor performs the Services under this Agreement. The insurance must be maintained for at least one (1) year following the completion of Contractor’s services or the expiration or termination of this Agreement. (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit A. 5.2 General Insurance Requirements. All of the above policies of insurance shall be primary insurance and shall name City, its elected and appointed officers, employees, agents, and authorized volunteers as additional insureds and any insurance maintained by City or its officers, employees, agents, or authorized volunteers shall apply in excess of, and not contribute with, Contractor’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against City, its officers, employees, agents, authorized volunteers, and their respective insurers. Prior written consent from City is required if any of the said policies have a deductible or self-insured retention in excess of TWENTY-FIVE THOUSAND DOLLARS ($25,000). Contractor shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 5.1 to the Contract Officer. No Services under this Agreement shall commence until Contractor has provided City with original endorsements effecting coverage set forth in this Article 5. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsement is to be on forms provided by or approved by City. As an alternative to City-approved forms, Contractor may provide complete certified copies of all required insurance policies, including endorsements affecting the coverage. City reserves the right to inspect complete, certified copies of all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:43 Menifee Mayor and City Council January 20,2021 Page 211 of 828 2671/031858-0001 7630667.2 a05/31/18 -12- performed by or on behalf of Contractor, including the insured’s general supervision of Contractor; products and completed operations of Contractor, as applicable; premises owned, occupied, or used by Contractor; and automobiles owned, leased, or used by Contractor in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects City or its respective elected or appointed officers, officials, employees, and volunteers or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses, and claims. Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5.3. In the event Contractor subcontracts any portion of the Services in compliance with Section 4.5 of this Agreement, the contract between Contractor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that Contractor is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City. 5.3 Indemnification. To the full extent permitted by law, Contractor agrees to indemnify, defend, and hold harmless City, its officers, employees, agents, and volunteers (“Indemnified Parties”) from and against any and all actions, either judicial, administrative, arbitration, or regulatory, damages to persons or property, losses, costs, penalties, obligations, errors, omissions, or liabilities whether actual or threatened (“Claims or Liabilities”) that may be asserted or claimed by any person, firm, or entity arising out of or in connection with the performance of the Services, operations, or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“Indemnors”), or arising from Contractor’s reckless or willful misconduct, or arising from Contractor’s or Indemnors’ negligent performance of or failure to perform any term, provision, covenant, or condition of this Agreement, and in connection therewith: (a) Contractor shall defend (with counsel selected by City) any action or actions filed in connection with any of said Claims or Liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims or Liabilities arising out of or in connection with the performance of or failure to perform such Services, operations or activities of Contractor hereunder; and Contractor agrees to save and hold City, its officers, agents, and employees harmless therefrom; Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:44 Menifee Mayor and City Council January 20,2021 Page 212 of 828 2671/031858-0001 7630667.2 a05/31/18 -13- (c) In the event City, its officers, agents, or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the performance of or failure to perform the Services, operation or activities of Contractor hereunder, Contractor agrees to pay to City, its officers, agents, or employees, any and all costs and expenses incurred by City, its officers, agents, or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees. Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor shall be fully responsible to indemnify City, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Contractor in the performance of professional services hereunder. The provisions of this Section do not apply to Claims or Liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness, or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement. 5.4 Payment and Performance Bond. Concurrently with execution of this Agreement, Contractor shall deliver to City a payment (labor and materials) bond and a performance bond, each in the sum of the amount of this Agreement, in the forms provided by the City Clerk, which secures the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement and shall be null and void only if Contractor promptly and faithfully performs all terms and conditions of this Agreement. 5.5 Sufficiency of Insurer or Surety. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Officer due to unique circumstances. If this Agreement continues for more than three (3) years duration, or in the event the Contract Officer determines that the Services to be performed under this Agreement creates an increased or decreased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 5.4 may be changed accordingly upon receipt of written notice from the Contract Officer; provided that Contractor shall have the right to appeal a determination of increased coverage by the Contract Officer to the City Council of City within ten (10) days of receipt of notice from the Contract Officer. 5.6 Substitution of Securities. Pursuant to Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor. ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:45 Menifee Mayor and City Council January 20,2021 Page 213 of 828 2671/031858-0001 7630667.2 a05/31/18 -14- 6.1 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. 6.2 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed. 6.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the “Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:46 Menifee Mayor and City Council January 20,2021 Page 214 of 828 2671/031858-0001 7630667.2 a05/31/18 -15- by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. 6.4 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all of the Documents and Materials. Contractor makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contractor or provided to Contractor by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 6.5 Confidentiality and Release of Information. (a) All information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer. (b) Contractor, its officers, employees, agents, or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered voluntary so long as Contractor gives City notice of such court order or subpoena. (c) If Contractor, or any officer, employee, agent, or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs, and fees, including attorneys’ fees, caused by or incurred as a result of Contractor’s conduct. (d) Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing, or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:47 Menifee Mayor and City Council January 20,2021 Page 215 of 828 2671/031858-0001 7630667.2 a05/31/18 -16- 7.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Riverside. 7.2 Disputes; Default. In the event that Contractor is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Contractor for any of the Services performed after the date of default. Instead, City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of City to give notice of Contractor’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement. 7.3 Retention of Funds. Contractor hereby authorizes City to retain and deduct from any amount payable to Contractor not exceeding five percent (5%) of the Contract Sum (whether or not arising out of this Agreement) as security for performance of this Agreement. The retained funds shall be paid to Contractor within sixty (60) days after final acceptance of the Services by the City Council of City and after Contractor has furnished City with full release of all undisputed payments under this Agreement. In the event there are any claims specifically excluded by Contractor from the operation of the release, City may retain proceeds of up to one hundred fifty percent (150%) of the amount in dispute. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Contractor to insure, indemnify, and protect City as provided in this Agreement. 7.4 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:48 Menifee Mayor and City Council January 20,2021 Page 216 of 828 2671/031858-0001 7630667.2 a05/31/18 -17- preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 7.6 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor and its sureties shall be liable for and shall pay to City the sum of FIVE HUNDRED DOLLARS ($500.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. City may withhold from any monies payable on account of the Services performed by Contractor any accrued liquidated damages. 7.8 Termination Prior to Expiration of Term. This Section 7.8 shall govern any termination of this Agreement except as specifically provided in the following Section 7.9 for termination for cause. City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Contractor, except that where termination is due to the fault of Contractor, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, Contractor reserves the right to terminate this Agreement at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of City, the period of notice may be such shorter time as Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer. Except where Contractor has initiated termination, Contractor shall be entitled to compensation for all Services rendered prior to the effective date of the notice of termination and for any Services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event Contractor has initiated termination, Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating Party need not provide the non-terminating Party with the opportunity to cure pursuant to Section 7.2. 7.9 Termination for Default of Contractor. If termination is due to the failure of Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contractor shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contractor for the purpose of set-off or partial payment of the amounts owed City as previously stated. 7.10 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a Party to any action or proceeding in any way connected with this Agreement, the prevailing Party in such action or proceeding, in addition to any other relief which may be granted, Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:49 Menifee Mayor and City Council January 20,2021 Page 217 of 828 2671/031858-0001 7630667.2 a05/31/18 -18- whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose. ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. Contractor covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of the Services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 8.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 8.4 Unauthorized Aliens. Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of the Services covered Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:50 Menifee Mayor and City Council January 20,2021 Page 218 of 828 2671/031858-0001 7630667.2 a05/31/18 -19- by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City. ARTICLE 9. MISCELLANEOUS PROVISIONS 9.1 Notices. Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of City, to the City Manager and to the attention of the Contract Officer, CITY OF MENIFEE, 29844 Haun Road, Menifee, CA 92586 and in the case of Contractor, to the person at the address designated on the execution page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. 9.2 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contractor without further acknowledgment of the Parties. 9.3 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.4 Article and Section Headings and Subheadings. The article and section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 9.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. 9.6 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete, and exclusive expression of the understanding of the Parties. It is understood that there are no oral agreements between the Parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contractor and by the City Council of City. The Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 9.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:51 Menifee Mayor and City Council January 20,2021 Page 219 of 828 2671/031858-0001 7630667.2 a05/31/18 -20- unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless. 9.8 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 9.9 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the Parties. [SIGNATURES ON FOLLOWING PAGE] Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:52 Menifee Mayor and City Council January 20,2021 Page 220 of 828 2671/031858-0001 7630667.2 a05/31/18 -21- IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written. AGENCY: CITY OF MENIFEE ______________________________ Armando G. Villa, City Manager CONTRACTOR: MUSCO SPORTS LIGHTING, LLC__________ By: By: ______________________________________ Contractor’s City Business License __#_797757, C-10________________ State Contractor License No. & Class ATTEST: Sarah A. Manwaring, City Clerk Address: 100 1ST AVENUE WEST_______________ OSKALOOSA, IA 52577________________ APPROVED AS TO FORM: Jeffrey T. Melching, City Attorney Two signatures are required if a corporation. NOTE: APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:53 Menifee Mayor and City Council January 20,2021 Page 221 of 828 2671/031858-0001 7630667.2 a05/31/18 -22- EXHIBIT A SPECIAL REQUIREMENTS Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:54 Menifee Mayor and City Council January 20,2021 Page 222 of 828 2671/031858-0001 7630667.2 a05/31/18 Exhibit B EXHIBIT B CONTRACT DOCUMENTS AND SPECIFICATIONS CITY OF MENIFEE CIP 20-09 (CS015): CENTENNIAL PARK LIGHTING PROJECT Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:55 Menifee Mayor and City Council January 20,2021 Page 223 of 828 2671/031858-0001 7630667.2 a05/31/18 -2- Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:56 Menifee Mayor and City Council January 20,2021 Page 224 of 828 2671/031858-0001 7630667.2 a05/31/18 -3- Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:57 Menifee Mayor and City Council January 20,2021 Page 225 of 828 2671/031858-0001 7630667.2 a05/31/18 -4- Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:58 Menifee Mayor and City Council January 20,2021 Page 226 of 828 2671/031858-0001 7630667.2 a05/31/18 -5- Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:59 Menifee Mayor and City Council January 20,2021 Page 227 of 828 2671/031858-0001 7630667.2 a05/31/18 -6- Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:60 Menifee Mayor and City Council January 20,2021 Page 228 of 828 2671/031858-0001 7630667.2 a05/31/18 -7- Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:61 Menifee Mayor and City Council January 20,2021 Page 229 of 828 2671/031858-0001 7630667.2 a05/31/18 -8- Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:62 Menifee Mayor and City Council January 20,2021 Page 230 of 828 2671/031858-0001 7630667.2 a05/31/18 -9- Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:63 Menifee Mayor and City Council January 20,2021 Page 231 of 828 2671/031858-0001 7630667.2 a05/31/18 Exhibit C EXHIBIT C CONTRACTOR’S PRICE Not-to-Exceed Seven Hundred Thirty Thousand Dollars and Zero Cents ($730,000.00). The Contract Price for performing all Work described in the Contract Documents, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, as determined by the Agency. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:64 Menifee Mayor and City Council January 20,2021 Page 232 of 828 2671/031858-0001 7630667.2 a05/31/18 -2- SCHEDULE OF PERFORMANCE Work is to be completed on a timely basis, with an estimated completion date of no later than December 31, 2021. Item Title:10.5 Centennial Park Sports Field Lighting,CIP No.20-09 (CS015) Item Page Number:65 Menifee Mayor and City Council January 20,2021 Page 233 of 828 CITY OF MENIFEE SUBJECT: Design Path Studio Agreement for Accessory Dwelling Unit (ADU) Plans and ADU Guidance Handbook MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Doug Darnell, Senior Planner REVIEWED BY: Cheryl Kitzerow, Community Development Director APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Approve Professional Services Agreement with Design Path Studio, in the not-to-exceed amount of $80,000 for professional services to prepare pre-approved accessory dwelling unit (ADU) plans and an ADU Guidance Handbook, and; 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $8,000. DISCUSSION In June of 2020, the City was awarded $310,000 in Senate Bill 2 (SB 2) Planning Grant Program Funds from the Department of Housing and Community Development (HCD). The funds are for the City to prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production. The SB 2 funding for the City of Menifee is for three separate planning efforts including 1) the Housing Element update; 2) preparation of residential objective development standards; and 3) preparation of pre-approved accessory dwelling unit (ADU) plans and an ADU Guidance Handbook. This professional services agreement under consideration by the City Council is specific to consultant work to prepare the pre-approved ADU plans and ADU Guidance Handbook. The scope of work for this effort includes preparation of pre-approved, code compliant ADU construction plans that the City can promote and provide to property owners for their use in building ADUs. The plans are intended to incentivize, streamline, and minimize costs to homeowners wishing to build an ADU. It also includes preparation of an ADU Guidance Handbook that will be a user-friendly guide for the public with information on how to successfully Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 234 of 828 City of Menifee Staff Report Design Path Studio Agreement January 20, 2021 Page 2 of 2 2 3 7 obtain permits for and build an ADU. This SB 2 funded effort will fulfill SB 2 funding objectives to streamline and accelerate housing by encouraging and increasing the number of ADUs in the City that could provide an affordable housing option for Menifee residents. On August 21, 2020, the City issued a competitive Request for Proposals inviting proposals from qualified professional consultants to prepare pre-approved ADU plans and an ADU Guidance Handbook. The City received five proposals from qualified architectural/planning firms. The proposals were evaluated by a panel of three City staff representing the Planning Department and the Building Department. The panel’s evaluation was based on the following criteria: Qualifications of the firm, proposed team organization, proposed project approach and fee proposal. Following review and scoring of the proposals, the panel interviewed the four highest scoring proposers to better determine which firm’s team, approach and capabilities would best serve the City. Design Path Studio (with subconsultant Checkerboard STUDIOS) ranked the highest with 60 out of 70 possible points. Based on the that ranking, the panel recommends Design Path Studio/Checkerboard STUDIOS for this work. Scores are provided in the table below. Consulting Firm Proposal Score 100 possible points Interview Score 70 possible points Design Path Studio 75 60 OpenScope 88.3 55 M.W. Steele Group 75.3 54 KTGY 75 51 BFK 66 N/A STRATEGIC PLAN OBJECTIVE: Livable and Economically Prosperous Community FISCAL IMPACT: The fiscal impact of the proposed Professional Services Agreement with Design Path Studio for this project is $80,000. In early summer of 2020, HCD awarded $310,000 in SB 2 Grant funds to the City for planning efforts to incentivize and accelerate housing production. Of this amount, $80,000 is budgeted to cover the entire cost of the ADU plans and will be paid from Account #301- 4330-52836 (SB2 Grant – Accessory Dwelling Unit Plans). ATTACHMENTS: 1. Professional Services Agreement with Design Path Studio for ADU template plans and handbook. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 235 of 828 2671/031858-0001 7630376.2 a09/14/20 CITY OF MENIFEE PROFESSIONAL SERVICES AGREEMENT CITY OF MENIFEE: PERMIT READY ADU UNIT PLANS AND GUIDANCE HANDBOOK THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and effective this _____ day of _____, 2021 (“Effective Date”) by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and DESIGN PATH STUDIO, a California S- Corporation (“Consultant”). City and Consultant may sometimes herein be referred to individually as a “Party” and collectively as the “Parties.” SECTION 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A and incorporated herein by this reference (the “Services”). Consultant will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail. 1.1 Term of Services. The term of this Agreement shall begin on January 20, 2021 and shall end on December 31, 2021 unless the term of this Agreement is otherwise terminated or extended as provided for in Section 8. The time provided to Consultant to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8. 1.2 Standard of Performance. Consultant represents and warrants that Consultant is a provider of first class work and services and Consultant is experienced in performing the Services contemplated herein and, in light of such status and experience, Consultant shall perform the Services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession and to the sole satisfaction of the Contract Administrator. 1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform the Services pursuant to Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons. 1.4 Time. Consultant shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Consultant’s obligations hereunder. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 236 of 828 2671/031858-0001 7630376.2 a09/14/20 -2- 1.5 Authorization to Perform Services. Consultant is not authorized to perform any of the Services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator. SECTION 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed EIGHTY THOUSAND DOLLARS AND ZERO CENTS ($80,000.00) not withstanding any contrary indications that may be contained in Consultant’s proposal, for the Services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for the Services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person. 2.1 Invoices. Consultant shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information: a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion; d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense; e. The total number of hours of work performed under this Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed; g. The Consultant Representative’s signature. Invoices shall be submitted to: City of Menifee Attn: Accounts Payable Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 237 of 828 2671/031858-0001 7630376.2 a09/14/20 -3- 29844 Haun Road Menifee, CA 92586 2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for the Services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Consultant. 2.3 Final Payment. City shall pay the last ten percent (10%) of the total amount due pursuant to this Agreement within sixty (60) days after completion of the Services and submittal to City of a final invoice, if all of the Services required have been satisfactorily performed. 2.4 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice. 2.5 Hourly Fees. Fees for the Services performed by Consultant on an hourly basis shall not exceed the amounts shown on the fee schedule included with Exhibit A. 2.6 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. 2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes. 2.8 Payment upon Termination. In the event that City or Consultant terminates this Agreement pursuant to Section 8, City shall compensate Consultant for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date. SECTION 3. FACILITIES AND EQUIPMENT. Except as otherwise provided, Consultant shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. City shall make available to Consultant only physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and the information in possession of City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be required to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 238 of 828 2671/031858-0001 7630376.2 a09/14/20 -4- SECTION 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance checked below and provide Certificates of Insurance, indicating that Consultant has obtained or currently maintains insurance that meets the requirements of this section and which is satisfactory, in all respects, to City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in Consultant’s compensation. Consultant shall not allow any subcontractor, consultant or other agent to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant acknowledges the insurance policy must cover inter-insured suits between City and other Insureds. 4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Consultant pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Consultant may rely on a self-insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Consultant, if a program of self- insurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. 4.2 Commercial General and Automobile Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, and non-owned automobiles. b. Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 239 of 828 2671/031858-0001 7630376.2 a09/14/20 -5- Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9. No endorsement shall be attached limiting the coverage. c. Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy: a. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis. b. Any failure of Consultant to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers. 4.3 Professional Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing the Services pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals’ errors and omissions. Any deductible or self-insured retention shall be shown on the Certificate. If the deductible or self-insured retention exceeds TWENTY-FIVE THOUSAND DOLLARS ($25,000), it must be approved by City. b. Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form: a. The retroactive date of the policy must be shown and must be no later than the commencement of the Services. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after the expiration or termination of this Agreement or completion of the Services, so long as commercially available at reasonable rates. c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Consultant must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Consultant’s sole cost and expense, any extended reporting provisions of the policy, if Consultant cancels or does not renew the coverage. d. A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 240 of 828 2671/031858-0001 7630376.2 a09/14/20 -6- 4.4 All Policies Requirements. a. Acceptability of insurers. All insurance required by this Section is to be placed with insurers with a Bests’ rating of no less than A:VII and admitted in California. b. Verification of coverage. Prior to beginning the Services under this Agreement, Consultant shall furnish City with Certificates of Insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The Certificate of Insurance must include the following reference: CITY OF MENIFEE: PERMIT READY ADU UNIT PLANS AND GUIDANCE HANDBOOK. The name and address for Additional Insured endorsements, Certificates of Insurance and Notice of Cancellation is: City of Menifee, 29844 Haun Road, Menifee, CA 92586. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Consultant. c. Notice of Reduction in or Cancellation of Coverage. Consultant shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased. d. Additional insured; primary insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Consultant, including the insured’s general supervision of Consultant; products and completed operations of Consultant, as applicable; premises owned, occupied, or used by Consultant; and automobiles owned, leased, or used by Consultant in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services. A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage. e. Deductibles and Self-insured Retentions. Consultant shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Consultant may increase such deductibles or self- insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 241 of 828 2671/031858-0001 7630376.2 a09/14/20 -7- retention levels with a requirement that Consultant procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. f. Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. g. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected. 4.5 Remedies. In addition to any other remedies at law or equity City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement. SECTION 5. INDEMNIFICATION. 5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties of any kind (including reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Consultant fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Consultant, its officers, agents, employees, or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. 5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 242 of 828 2671/031858-0001 7630376.2 a09/14/20 -8- all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. 5.3 Limitation of Indemnification for Design Professionals. Notwithstanding any provision of this Section 5 to the contrary, design professionals are required to defend and indemnify City only to the extent permitted by Civil Code Section 2782.8. The term “design professional” as defined in Section 2782.8, is limited to licensed architects, licensed landscape architects, registered professional engineers, professional land surveyors, and the business entities that offer such services in accordance with the applicable provisions of the California Business and Professions Code. 5.4 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity. SECTION 6. STATUS OF CONSULTANT. 6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents is in any manner officers, officials, employees, or agents of City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. SECTION 7. LEGAL REQUIREMENTS. 7.1 Governing Law. The laws of the State of California shall govern this Agreement. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 243 of 828 2671/031858-0001 7630376.2 a09/14/20 -9- 7.2 Compliance with Applicable Laws. Consultant and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Consultant shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Any and all work subject to prevailing wages, as determined by the Director of Industrial Relations of the State of California, will be the minimum paid to all laborers, including Consultant’s employee and subcontractors. It is understood that it is the responsibility of Consultant to determine the correct scale. The State Prevailing Wage Rates may be obtained from the California Department of Industrial Relations (“DIR”) pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415-703-4774. Appropriate records demonstrating compliance with such requirement shall be maintained in a safe and secure location at all times, and readily available at City’s request. Consultant shall indemnify, defend, and hold City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers harmless from and against any liability, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by Consultant or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Consultant or any party performing the Services to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all public works (as defined by applicable law), Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Consultant acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Consultant shall require the same of all subcontractors. 7.3 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City. SECTION 8. TERMINATION AND MODIFICATION. 8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. 8.2 Termination by Consultant. Consultant may cancel this Agreement upon 30 days’ written notice to City. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 244 of 828 2671/031858-0001 7630376.2 a09/14/20 -10- 8.3 Consequences of Termination. In the event of termination, Consultant shall be entitled to compensation for the Services performed up to the date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or City in connection with this Agreement. 8.4 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period. 8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. 8.6 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in Consultant’s proposal, without prior written approval of the Contract Administrator. In the event that key personnel leave Consultant’s employ, Consultant shall notify City immediately. 8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the expiration or termination of this Agreement. 8.8 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, any or all of the following: a. Immediately terminate this Agreement; b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different consultant to complete the Services described in Exhibit A; and/or d. Charge Consultant the difference between the cost to complete the Services described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the Services. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 245 of 828 2671/031858-0001 7630376.2 a09/14/20 -11- SECTION 9. KEEPING AND STATUS OF RECORDS. 9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of City. Consultant hereby agrees to deliver those documents to City upon the expiration or termination of this Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for City and are not necessarily suitable for any future or other use. Any use of such documents for other projects by City shall be without liability to Consultant. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. 9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents and Data”). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents and Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents and Data. Consultant makes no such representation and warranty in regard to Documents and Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 9.3 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for the Services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. 9.4 Inspection and Audit of Records. Any records or documents that Section 9.3 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 246 of 828 2671/031858-0001 7630376.2 a09/14/20 -12- SECTION 10. MISCELLANEOUS PROVISIONS. 10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose. 10.2 Applicable Law; Venue. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County. 10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. 10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 10.5 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 10.7 Consultant Representative. All matters under this Agreement shall be handled for Consultant by Geoffrey Plagemann (“Consultant’s Representative”). The Consultant’s Representative shall have full authority to represent and act on behalf of Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 10.8 City Contract Administration. This Agreement shall be administered by a City employee, Doug Darnell, Sr. Planner (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. The Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Consultant shall not accept direction or orders from any person other than the Contract Administrator or his designee. 10.9 Notices. Any written notice to Consultant shall be sent to: Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 247 of 828 2671/031858-0001 7630376.2 a09/14/20 -13- Design Path Studio Attn: Yvonne St Pierre 364 2nd Street #2 Encinitas, CA 92024 Any written notice to City shall be sent to the Contract Administrator at: City of Menifee 29844 Haun Road Menifee, CA 92586 Attn: Doug Darnell, Sr. Planner with a copy to: City Clerk City of Menifee 29844 Haun Road Menifee, CA 92586 10.10 Professional Seal. Where applicable in the determination of the Contract Administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled “Seal and Signature of Registered Professional with report/design responsibility,” as in the following example. __________________________________________ Seal and Signature of Registered Professional with report/design responsibility. 10.11 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 10.12 Integration. This Agreement, including the scope of services attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 248 of 828 2671/031858-0001 7630376.2 a09/14/20 -14- 10.14 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. 10.15 Nondiscrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10.16 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.17 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 10.18 No Undue Influence. Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Consultant, or from any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. 10.19 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Services to be performed under this Agreement. [Signatures on Following Page] Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 249 of 828 2671/031858-0001 7630376.2 a09/14/20 -15- IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date. CITY OF MENIFEE Armando G. Villa, City Manager Attest: Sarah A. Manwaring, City Clerk Approved as to Form: Jeffrey T. Melching, City Attorney CONSULTANT Yvonne St Pierre, AIA, President Yvonne St Pierre, AIA, Secretary [Corporation must have two signatures] Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 250 of 828 2671/031858-0001 7630376.2 a09/14/20 EXHIBIT A EXHIBIT A SCOPE OF SERVICES Services shall include comprehensive development of permit ready ADU Unit Plans and Guidance Handbook in the not to exceed amount of EIGHTY THOUSAND DOLLARS AND ZERO CENTS ($80,000.00) and as further detailed in the following page(s). Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 251 of 828 2671/031858-0001 7630376.2 a00/00/00 EXHIBIT A Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 252 of 828 2671/031858-0001 7630376.2 a00/00/00 -2- Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 253 of 828 2671/031858-0001 7630376.2 a00/00/00 -3- Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 254 of 828 2671/031858-0001 7630376.2 a00/00/00 -4- Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 255 of 828 2671/031858-0001 7630376.2 a00/00/00 -5- Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 256 of 828 2671/031858-0001 7630376.2 a00/00/00 -6- Item Title:10.6 Design Path Studio Agreement for Accessory Dwelling Unit (ADU)Plans and ADU Guidance Handbook Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 257 of 828 CITY OF MENIFEE SUBJECT: PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Doug Darnell, Senior Planner REVIEWED BY: Cheryl Kitzerow, Community Development Director APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Approve Professional Services Agreement with PlaceWorks, in the not-to-exceed amount of $59,900 for professional services to prepare Objective Development Standards to accelerate housing production in conformance with Senate Bill (SB) 35 and Housing and Community Development’s (HCD) Streamlined Ministerial Approval Guidelines, and; 2. Authorize City Manager to execute the agreement and approve any necessary contract amendment(s) up to 10% or $5,990. DISCUSSION Background In June of 2020, the City was awarded $310,000 in Senate Bill 2 (SB2) Planning Grant Program Funds from the Department of Housing and Community Development (HCD). The funds are for the City to prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production. The SB2 funding for the City of Menifee is for three separate planning efforts including 1) the Housing Element update; 2) preparation of pre-approved accessory dwelling unit (ADU) plans and an ADU guidance handbook; and 3) preparation of residential “objective development standards.” The development and adoption of “objective development standards” will facilitate City compliance with Senate Bill 35 (SB35), which was signed into law by the Governor in 2017 and went into effect on January 1, 2018. SB 35 requires the availability of a streamlined ministerial approval process for developments in localities that have not yet made sufficient progress towards Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 258 of 828 City of Menifee Staff Report PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance January 20, 2021 Page 2 of 3 2 3 9 their allocation of the regional housing need. The streamlined approval process is an opt-in program for developers who must request streamlined ministerial approval pursuant to SB 35 at the time of a permit application submittal. The intent of the legislation is to facilitate and expedite the construction of housing. Eligible developments under SB 35 must include a specified level of affordability and be located on an infill site, comply with existing residential and mixed-use general plan or zoning provisions, and comply with other requirements such as locational and demolition restrictions. The “objective development standards” that will be prepared by the City’s consultant under this agreement will follow the requirements of AB35 and the Department of Housing and Community Development’s (HCDs) Streamlined Ministerial Approval Process Guidelines, which define “objective standards” as standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion. Request for Proposals On August 7, 2020, the City issued a competitive Request for Proposals (RFP) requesting the services of an experienced consultant to prepare the objective development/design standards. These standards are intended to supplement the City’s current development standards of the Zoning Code and Design Guidelines and will be applicable to residential development eligible for streamlined approval under SB 35 and HCD’s Streamlined Ministerial Approval Guidelines. The scope of work includes:  Review and development of objective development/design standards appropriate for the City of Menifee;  Public outreach to facilitate input from the community stakeholders on draft objective development/design standards; and  Public hearings with the Planning Commission and City Council for final adoption of the objective development/design standards. Of ten prospective firms that viewed the RFP during the solicitation process, the City received one proposal submitted by PlaceWorks. Because there was only one proposal, City staff inquired with the nine other prospective consulting firms to understand why they had not submitted a proposal. Three firms responded to the inquiry. Staff considered re-issuing the RFP if the responses indicated other proposals would likely be submitted, such as “not enough time”, or “additional clarifications needed in the scope of work.” Instead, the responses indicated that the RFP scope of work was not within the type of work provided by the firm and/or the firm would likely not submit a proposal, even if the City re-issued the RFP. As such, staff proceeded with evaluating the one proposal. A panel of three City staff representing Planning, Engineering, and the Building Department, reviewed and scored the PlaceWorks’ proposal. Aggregately, the Proposal received a score of 90 out of 100 points. The Proposal exceeds the requirements of the City’s RFP and demonstrates that PlaceWorks is a highly qualified firm with the expertise and qualifications to perform the scope Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 259 of 828 City of Menifee Staff Report PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance January 20, 2021 Page 3 of 3 2 3 9 of work. In addition, PlaceWorks has worked on similar objective development standard efforts for other neighboring jurisdictions. STRATEGIC PLAN OBJECTIVE Livable and Economically Prosperous Community FISCAL IMPACT: The fiscal impact of the proposed Professional Services Agreement with PlaceWorks for this project is $59,900. In early summer of this year, the HCD awarded $310,000 in SB 2 Grant funds to the City for planning efforts to incentivize and accelerate housing production. Of this amount, $60,000 is budgeted to cover the entire cost of the Objective Development Standards and will be paid from Account #301-4330-52837 (SB2 Grant – Objective Development Standards). No additional budget appropriation is needed. ATTACHMENTS: 1. Agreement with Placeworks Inc. Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 260 of 828 2671/031858-0001 7630421.2 a05/22/20 CITY OF MENIFEE PROFESSIONAL SERVICES AGREEMENT CITY OF MENIFEE: OBJECTIVE DEVELOPMENT STANDARDS TO ACCELERATE HOUSING PRODUCTION THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and effective this _____ day of __________, 2021 (“Effective Date”) by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and Placeworks Inc., a California Corporation (“Consultant”). City and Consultant may sometimes herein be referred to individually as a “Party” and collectively as the “Parties.” SECTION 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A and incorporated herein by this reference (the “Services”). Consultant will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail. 1.1 Term of Services. The term of this Agreement shall begin on January 20, 2021 and shall end on June 30, 2021 unless the term of this Agreement is otherwise terminated or extended as provided for in Section 8. The time provided to Consultant to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8. 1.2 Standard of Performance. Consultant represents and warrants that Consultant is a provider of first class work and services and Consultant is experienced in performing the Services contemplated herein and, in light of such status and experience, Consultant shall perform the Services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession and to the sole satisfaction of the Contract Administrator. 1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform the Services pursuant to Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons. 1.4 Time. Consultant shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Consultant’s obligations hereunder. Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 261 of 828 2671/031858-0001 7630421.2 a05/22/20 -2- 1.5 Authorization to Perform Services. Consultant is not authorized to perform any of the Services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator. SECTION 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed FIFTY NINE THOUSAND FIVE HUNDRED DOLLARS AND ZERO CENTS ($59,500.00) notwithstanding any contrary indications that may be contained in Consultant’s proposal, for the Services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for the Services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person. 2.1 Invoices. Consultant shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information: a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion; d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense; e. The total number of hours of work performed under this Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed; g. The Consultant Representative’s signature. Invoices shall be submitted to: City of Menifee Attn: Accounts Payable Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 262 of 828 2671/031858-0001 7630421.2 a05/22/20 -3- 29844 Haun Road Menifee, CA 92586 2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for the Services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Consultant. 2.3 Final Payment. City shall pay the last five percent (5%) of the total amount due pursuant to this Agreement within sixty (60) days after completion of the Services and submittal to City of a final invoice, if all of the Services required have been satisfactorily performed. 2.4 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice. 2.5 Hourly Fees. Fees for the Services performed by Consultant on an hourly basis shall not exceed the amounts shown on the fee schedule included with Exhibit A. 2.6 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. 2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes. 2.8 Payment upon Termination. In the event that City or Consultant terminates this Agreement pursuant to Section 8, City shall compensate Consultant for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date. SECTION 3. FACILITIES AND EQUIPMENT. Except as otherwise provided, Consultant shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. City shall make available to Consultant only physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and the information in possession of City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be required to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 263 of 828 2671/031858-0001 7630421.2 a05/22/20 -4- SECTION 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance checked below and provide Certificates of Insurance, indicating that Consultant has obtained or currently maintains insurance that meets the requirements of this section and which is satisfactory, in all respects, to City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in Consultant’s compensation. Consultant shall not allow any subcontractor, consultant or other agent to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant acknowledges the insurance policy must cover inter-insured suits between City and other Insureds. 4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Consultant pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Consultant may rely on a self-insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Consultant, if a program of self- insurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. 4.2 Commercial General and Automobile Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, and non-owned automobiles. b. Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001. Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 264 of 828 2671/031858-0001 7630421.2 a05/22/20 -5- Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9. No endorsement shall be attached limiting the coverage. c. Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy: a. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis. b. Any failure of Consultant to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers. 4.3 Professional Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing the Services pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals’ errors and omissions. Any deductible or self-insured retention shall be shown on the Certificate. If the deductible or self-insured retention exceeds TWENTY-FIVE THOUSAND DOLLARS ($25,000), it must be approved by City. b. Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form: a. The retroactive date of the policy must be shown and must be no later than the commencement of the Services. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after the expiration or termination of this Agreement or completion of the Services, so long as commercially available at reasonable rates. c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Consultant must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Consultant’s sole cost and expense, any extended reporting provisions of the policy, if Consultant cancels or does not renew the coverage. d. A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement. Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 265 of 828 2671/031858-0001 7630421.2 a05/22/20 -6- 4.4 All Policies Requirements. a. Acceptability of insurers. All insurance required by this Section is to be placed with insurers with a Bests’ rating of no less than A:VII and admitted in California. b. Verification of coverage. Prior to beginning the Services under this Agreement, Consultant shall furnish City with Certificates of Insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The Certificate of Insurance must include the following reference: CITY OF MENIFEE: OBJECTIVE DEVELOPMENT STANDARDS TO ACCELERATE HOUSING PRODUCTION. The name and address for Additional Insured endorsements, Certificates of Insurance and Notice of Cancellation is: City of Menifee, 29844 Haun Road, Menifee, CA 92586. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Consultant. c. Notice of Reduction in or Cancellation of Coverage. Consultant shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. d. Additional insured; primary insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Consultant, including the insured’s general supervision of Consultant; products and completed operations of Consultant, as applicable; premises owned, occupied, or used by Consultant; and automobiles owned, leased, or used by Consultant in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services. A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage. e. Deductibles and Self-insured Retentions. Consultant shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Consultant may increase such deductibles or self- insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 266 of 828 2671/031858-0001 7630421.2 a05/22/20 -7- retention levels with a requirement that Consultant procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. f. Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. g. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected. 4.5 Remedies. In addition to any other remedies at law or equity City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement. SECTION 5. INDEMNIFICATION. 5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties of any kind (including reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Consultant fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Consultant, its officers, agents, employees, or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. 5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 267 of 828 2671/031858-0001 7630421.2 a05/22/20 -8- all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. 5.3 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity. SECTION 6. STATUS OF CONSULTANT. 6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents is in any manner officers, officials, employees, or agents of City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. SECTION 7. LEGAL REQUIREMENTS. 7.1 Governing Law. The laws of the State of California shall govern this Agreement. 7.2 Compliance with Applicable Laws. Consultant and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Consultant shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Any and all work subject to prevailing wages, as determined by the Director of Industrial Relations of the State of California, will be the minimum paid to all laborers, including Consultant’s employee and subcontractors. It is understood that it is the responsibility of Consultant to determine the correct scale. The State Prevailing Wage Rates may be obtained from the California Department of Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 268 of 828 2671/031858-0001 7630421.2 a05/22/20 -9- Industrial Relations (“DIR”) pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415-703-4774. Appropriate records demonstrating compliance with such requirement shall be maintained in a safe and secure location at all times, and readily available at City’s request. Consultant shall indemnify, defend, and hold City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers harmless from and against any liability, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by Consultant or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Consultant or any party performing the Services to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all public works (as defined by applicable law), Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Consultant acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Consultant shall require the same of all subcontractors. 7.3 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City. SECTION 8. TERMINATION AND MODIFICATION. 8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. 8.2 Termination by Consultant. Consultant may cancel this Agreement upon 30 days’ written notice to City. 8.3 Consequences of Termination. In the event of termination, Consultant shall be entitled to compensation for the Services performed up to the date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or City in connection with this Agreement. Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 269 of 828 2671/031858-0001 7630421.2 a05/22/20 -10- 8.4 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period. 8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. 8.6 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in Consultant’s proposal, without prior written approval of the Contract Administrator. In the event that key personnel leave Consultant’s employ, Consultant shall notify City immediately. 8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the expiration or termination of this Agreement. 8.8 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City's remedies shall include, but not be limited to, any or all of the following: a. Immediately terminate this Agreement; b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different consultant to complete the Services described in Exhibit A; and/or d. Charge Consultant the difference between the cost to complete the Services described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the Services. SECTION 9. KEEPING AND STATUS OF RECORDS. 9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form that Consultant prepares Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 270 of 828 2671/031858-0001 7630421.2 a05/22/20 -11- or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of City. Consultant hereby agrees to deliver those documents to City upon the expiration or termination of this Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for City and are not necessarily suitable for any future or other use. Any use of such documents for other projects by City shall be without liability to Consultant. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. 9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents and Data”). Consultant shall require all subcontractors to agree in writing that City is granted a non- exclusive and perpetual license for any Documents and Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents and Data. Consultant makes no such representation and warranty in regard to Documents and Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 9.3 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for the Services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. 9.4 Inspection and Audit of Records. Any records or documents that Section 9.3 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. SECTION 10. MISCELLANEOUS PROVISIONS. 10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 271 of 828 2671/031858-0001 7630421.2 a05/22/20 -12- any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose. 10.2 Applicable Law; Venue. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County. 10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. 10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 10.5 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 10.7 Consultant Representative. All matters under this Agreement shall be handled for Consultant by Kim McCann (“Consultant’s Representative”). The Consultant’s Representative shall have full authority to represent and act on behalf of Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 10.8 City Contract Administration. This Agreement shall be administered by a City employee, Doug Darnell, Sr. Planner (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. The Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Consultant shall not accept direction or orders from any person other than the Contract Administrator or his designee. 10.9 Notices. Any written notice to Consultant shall be sent to: Placeworks Inc. Attn: Kim McCann 3 MAC ARTHUR PLACE, SUITE 1100 SANTA ANA, CA 92707 Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 272 of 828 2671/031858-0001 7630421.2 a05/22/20 -13- Any written notice to City shall be sent to the Contract Administrator at: City of Menifee 29844 Haun Road Menifee, CA 92586 Attn: Doug Darnell, Sr. Planner with a copy to: City Clerk City of Menifee 29844 Haun Road Menifee, CA 92586 10.10 Professional Seal. Where applicable in the determination of the Contract Administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled “Seal and Signature of Registered Professional with report/design responsibility,” as in the following example. __________________________________________ Seal and Signature of Registered Professional with report/design responsibility. 10.11 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 10.12 Integration. This Agreement, including the scope of services attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. 10.14 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 273 of 828 2671/031858-0001 7630421.2 a05/22/20 -14- 10.15 Nondiscrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10.16 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.17 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 10.18 No Undue Influence. Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Consultant, or from any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. 10.19 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Services to be performed under this Agreement. [Signatures on Following Page] Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 274 of 828 2671/031858-0001 7630421.2 a05/22/20 -15- IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date. CITY OF MENIFEE Armando G. Villa, City Manager Attest: Sarah A. Manwaring, City Clerk Approved as to Form: Jeffrey T. Melching, City Attorney CONSULTANT Keith McCann, CEO/CFO Brian Judd, Vice President [Note: 2 officer’s signatures required if Consultant is a corporation, unless provided with a certificate of secretary in-lieu] Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 275 of 828 2671/031858-0001 7630421.2 a00/00/00 -2- EXHIBIT A SCOPE OF SERVICES Scope of Services shall include comprehensive objective development standards to accelerate housing production in the not to exceed amount of FIFTY NINE THOUSAND FIVE HUNDRED DOLLARS AND ZERO CENTS ($59,500.00) as further detailed in the following pages. Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 276 of 828 2671/031858-0001 7630421.2 a00/00/00 -3- Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 277 of 828 2671/031858-0001 7630421.2 a00/00/00 -4- Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 278 of 828 2671/031858-0001 7630421.2 a00/00/00 -5- Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 279 of 828 2671/031858-0001 7630421.2 a00/00/00 -6- Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 280 of 828 2671/031858-0001 7630421.2 a00/00/00 -7- Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 281 of 828 2671/031858-0001 7630421.2 a00/00/00 -8- Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 282 of 828 2671/031858-0001 7630421.2 a00/00/00 EXHIBIT A Item Title:10.7 PlaceWorks Agreement for Objective Development Standards for Senate Bill 35 Compliance Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 283 of 828 CITY OF MENIFEE SUBJECT: "Motte-Rancon Distribution Center" Environmental Impact Report Agreements MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Margarita Cornejo, Financial Services Manager REVIEWED BY: Cheryl Kitzerow, Community Development Director APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Approve a Developer Reimbursement Agreement between the City of Menifee and Core5 Industrial Partners, LLC related to the Plot Plan No. 2019-005 Project, located on Sherman Road, south of Ethanac Road: Environmental Impact Report (EIR) preparation; and 2. Adopt a Resolution appropriating $271,216 from available fund balance to Account #100- 4330-52825 (Professional Services (Recoverable)); and 3. Approve a Professional Services Agreement with Kimley-Horn and Associates Inc. in the not- to- exceed amount of $246,560 for preparation of an EIR for the Plot Plan No. 2019-005 Project; and 4. Authorize City Manager to execute the agreements and approve necessary contract amendment(s) up to 10% or $24,656. DISCUSSION Plot Plan No. 2019-005 (“Motte-Rancon Distribution Center”), generally located on Sherman Road, south of Ethanac Road, proposes development of two new concrete tilt-up industrial buildings totaling 1,461,650 square feet (385,970 SF & 1,075,680 SF) on approximately 76.38 acres. The project includes a General Plan Amendment and Specific Plan Amendment to change portions of the site from Heavy Industrial and Business Park to Specific Plan (Menifee North SP). As a next step to move forward with the project, technical studies will need to be completed, and based on the complexity of the proposed development for the project, an Environmental Impact Report (EIR) will need to be completed. To ensure objectivity and protect public interest, the City shall select consultant(s) in the preparation of CEQA documents and related studies, for projects Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 284 of 828 City of Menifee Staff Report PP2019-005 "Motte-Rancon Distribution Center" EIR Agreements January 20, 2021 Page 2 of 2 2 4 0 within the City boundaries. In the spring of 2019, the City’s Community Development Department issued a competitive Request for Qualifications (RFQ) for qualified firms to provide various on-call Professional Planning Services. A Selection/Evaluation Committee comprised of internal Community Development (Planning) staff evaluated and ranked each proposal on the following criteria: qualifications of the firm, proposed team and organization, past experience and references, and project management system, and an On-Call List resulting from the RFQ was approved at the June 19, 2019 City Council meeting. Accordingly, staff has solicited and received project specific proposals from qualified firms included within its On-Call List for the preparation of the required EIR for the Motte-Rancon Distribution Center. A total of two responses were received. The proposals were evaluated by Community Development staff for completeness in meeting the requested services, cost proposals, project teams, and past experiences. Following completion of its review, staff recommends approval of the recommended action. All costs associated with the preparation of the EIR for the Motte-Rancon Distribution Project will be fully recovered as the project applicant is required to deposit sufficient funds with the City prior to the work in the study commences. STRATEGIC PLAN OBJECTIVE Safe and Attractive Community FISCAL IMPACT: The fiscal impact of the proposed Professional Services Agreement with Kimley-Horn & Associates, Inc. for this project is $246,560 and requires a corresponding budget appropriation from available fund balance in the amount of $271,216 (to include any potential necessary amendment(s) up to 10%). The full costs of the services rendered by Kimley-Horn & Associates Inc. for this project will be offset by a fee deposited with the city by the project applicant. The applicant will pay all contract and preparation costs plus a 15% administrative fee, per standard procedure. A Resolution authorizing budget appropriation in the amount of $271,216 from available General Fund balance to Account # 100-4330-52825 (Professional Services (Recoverable)) is included for approval. ATTACHMENTS: 1. Budget Amendment Resolution 2. Professional Services Agreement with Kimley-Horn & Associates, Inc. 3. Developer Reimbursement Agreement Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 285 of 828 RESOLUTION NO. 21-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING THE FISCAL YEAR 2020/21 OPERATING BUDGET WHEREAS, the City of Menifee, California adopted a budget for the fiscal year 2020/21 with Resolution No. 20-916 on June 3rd, 2020; and WHEREAS, the City of Menifee does from time to time have unanticipated revenues and/or expenditures arise; and WHEREAS, it is in the best interest of the citizens of the City of Menifee to allocate budget resources to continue and enhance the operations of the City of Menifee; and WHEREAS, the City Council of the City of Menifee needs to amend the fiscal year 2020/21 budget to reflect an additional revenue source and a corresponding additional expenditure as follows: AMENDMENTS TO ADOPTED BUDGET: General Fund Adopted FY20/21 Budget: $49,389,575 1. Record Revenue Estimate(s): CITY COUNCIL MEETING DESCRIPTION ACCOUNT #AMOUNT July 15, 2020 Donation 100-3855 10,000 August 19, 2020 Donation 100-3855 2,500 October 7, 2020 Donation 100-3855 13,500 October 7, 2020 State Asset Forfeiture 100-3468 11,112 November 4, 2020 State Asset Forfeiture 100-3468 $10,000 December 16, 2020 Menifee PD: PACT Reimbursement from County 100-3467 $55,700 TOTAL:$102,812 Amended General Fund FY 2020/21 Revenue Budget: $49,492,387 General Fund Adopted FY20/21 Budget: $49,389,575 2. Record Appropriation(s): CITY COUNCIL MEETING DESCRIPTION ACCOUNT #AMOUNT July 15, 2020 Police Volunteer Program 100-4911-52509 10,000 July 15, 2020 Police Start-Up Year Budget Roll-Over 100-4911-58090 273,873 Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 286 of 828 Amending the Fiscal Year 2020/21 Budget 2 8 9 August 19, 2020 Printing & Duplication 100-4911-51300 2,500 October 7, 2020 Training 100-4911-52211 2,000 October 7, 2020 Protective Devices & Accessories 100-4911-52751 11,500 October 7, 2020 Training 100-4911-52211 3,504 October 7, 2020 Materials & Supplies 100-4911-51501 1,164 October 7, 2020 Capital Outlays 100-4911-53155 6,444 October 21, 2020 Various Expenditures General Fund (FY19/20 Budget Carry-Over) 100-XXXX-XXXXX 1,329,739 November 4, 2020 Professional Services (Recoverable) 100-4330-52825 119,724 November 18, 2020 Materials & Supplies 100-4911-51501 9,559 November 18, 2020 Capital Outlays 100-4911-53155 441 December 16, 2020 Menifee PD (Salaries Various) 100-4911-xxxxx 684,687 December 16, 2020 Menifee PD (New Hire Screening/Testing) 100-4911-52100 20,400 December 16, 2020 Menifee PD (Capital Outlays (Vehicles & Leica360 Scanner) 100-4911-53155 380,316 December 16, 2020 Menifee PD (Protective Devices & Accessories) 100-4911-52751 163,618 December 16, 2020 Menifee PD (Furniture & Equipment) 100-4911-53150 1,800 January 20, 2021 Motte-Rancon Distribution Center EIR 100-4330-52825 271,216 TOTAL:$3,292,485 Amended General Fund FY 2020/21 Expenditure Budget: $52,682,060 3. Record Transfer of Funds: FROM ACCOUNT #TO ACCOUNT #AMOUNT TOTAL:0 Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 287 of 828 Amending the Fiscal Year 2020/21 Budget 3 8 9 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS: The annual budget for the City of Menifee for fiscal year 2020/21 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows: Revenues: Amended FY 2020/21 Revenue Budget: $ 49,492,387 Expenditures: Menifee PD: Salaries $271,216 Amended FY 2020/21 Expenditure Budget: $ 52,682,060 PASSED, APPROVED AND ADOPTED this 20th day of January, 2021. _____________________________ Bill Zimmerman, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ Sarah A. Manwaring, City Clerk Jeffrey T. Melching, City Attorney Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 288 of 828 2671/031858-0001 7630421.2 a05/22/20 CITY OF MENIFEE PROFESSIONAL SERVICES AGREEMENT PP2019-005 "MOTTE-RANCON DISTRIBUTION CENTER": ENVIRONMENTAL IMPACT REPORT (EIR) PREPARATION THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and effective this _____ day of __________, 2021 (“Effective Date”) by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and Kimley-Horn and Associates, Inc., a North Carolina Corporation (“Consultant”). City and Consultant may sometimes herein be referred to individually as a “Party” and collectively as the “Parties.” SECTION 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A and incorporated herein by this reference (the “Services”). Consultant will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail. 1.1 Term of Services. The term of this Agreement shall begin on January 20, 2021 and shall end on December 31, 2021 unless the term of this Agreement is otherwise terminated or extended as provided for in Section 8. The time provided to Consultant to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8. 1.2 Standard of Performance. Consultant represents and warrants that Consultant is a provider is experienced in performing the Services contemplated herein and Consultant shall perform the Services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession and to the satisfaction of the Contract Administrator. 1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform the Services pursuant to Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons. 1.4 Time. Consultant shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Consultant’s obligations hereunder. 1.5 Authorization to Perform Services. Consultant is not authorized to perform any of the Services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator. Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 289 of 828 2671/031858-0001 7630421.2 a05/22/20 -2- SECTION 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed TWO HUNDRED FORTY SIX THOUSAND FIVE HUNDRED SIXTY DOLLARS AND ZERO CENTS ($246,560.00) notwithstanding any contrary indications that may be contained in Consultant’s proposal, for the Services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for the Services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person. 2.1 Invoices. Consultant shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information: a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion; d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense; e. The total number of hours of work performed under this Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed; g. The Consultant Representative’s signature. Invoices shall be submitted to: City of Menifee Attn: Accounts Payable 29844 Haun Road Menifee, CA 92586 Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 290 of 828 2671/031858-0001 7630421.2 a05/22/20 -3- 2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for the Services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Consultant. 2.3 Final Payment. City shall pay the last five percent (5%) of the total amount due pursuant to this Agreement within sixty (60) days after completion of the Services and submittal to City of a final invoice, if all of the Services required have been satisfactorily performed. 2.4 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice. 2.5 Hourly Fees. Fees for the Services performed by Consultant on an hourly basis shall not exceed the amounts shown on the fee schedule included with Exhibit A. 2.6 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. 2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes. 2.8 Payment upon Termination. In the event that City or Consultant terminates this Agreement pursuant to Section 8, City shall compensate Consultant for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date. SECTION 3. FACILITIES AND EQUIPMENT. Except as otherwise provided, Consultant shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. City shall make available to Consultant only physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and the information in possession of City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be required to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 291 of 828 2671/031858-0001 7630421.2 a05/22/20 -4- SECTION 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance checked below and provide Certificates of Insurance, indicating that Consultant has obtained or currently maintains insurance that meets the requirements of this section and which is satisfactory, in all respects, to City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in Consultant’s compensation. Consultant shall not allow any subcontractor, consultant or other agent to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant acknowledges the insurance policy must cover inter-insured suits between City and other Insureds. 4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Consultant pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Consultant may rely on a self- insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Consultant, if a program of self- insurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. 4.2 Commercial General and Automobile Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, and non-owned automobiles. b. Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001. Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 292 of 828 2671/031858-0001 7630421.2 a05/22/20 -5- Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9. No endorsement shall be attached limiting the coverage. c. Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy: a. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis. b. Any failure of Consultant to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers. 4.3 Professional Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing the Services pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals’ errors and omissions. Any deductible or self-insured retention shall be shown on the Certificate. If the deductible or self-insured retention exceeds TWENTY-FIVE THOUSAND DOLLARS ($25,000), it must be approved by City. b. Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form: a. The retroactive date of the policy must be shown and must be no later than the commencement of the Services. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after the expiration or termination of this Agreement or completion of the Services, so long as commercially available at reasonable rates. c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Consultant must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Consultant’s sole cost and expense, any extended reporting provisions of the policy, if Consultant cancels or does not renew the coverage. d. A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement. Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 293 of 828 2671/031858-0001 7630421.2 a05/22/20 -6- 4.4 All Policies Requirements. a. Acceptability of insurers. All insurance required by this Section is to be placed with insurers with a Bests’ rating of no less than A:VII and admitted in California. b. Verification of coverage. Prior to beginning the Services under this Agreement, Consultant shall furnish City with Certificates of Insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The Certificate of Insurance must include the following reference: PP2019- 005 "MOTTE-RANCON DISTRIBUTION CENTER": ENVIRONMENTAL IMPACT REPORT (EIR) PREPARATION. The name and address for Additional Insured endorsements, Certificates of Insurance and Notice of Cancellation is: City of Menifee, 29844 Haun Road, Menifee, CA 92586. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Consultant. c. Notice of Reduction in or Cancellation of Coverage. Consultant shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. d. Additional insured; primary insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Consultant, including the insured’s general supervision of Consultant; products and completed operations of Consultant, as applicable; premises owned, occupied, or used by Consultant; and automobiles owned, leased, or used by Consultant in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services. A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage. e. Deductibles and Self-insured Retentions. Consultant shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Consultant may increase such deductibles or self- insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 294 of 828 2671/031858-0001 7630421.2 a05/22/20 -7- retention levels with a requirement that Consultant procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. f. Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. g. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected. 4.5 Remedies. In addition to any other remedies at law or equity City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement. SECTION 5. INDEMNIFICATION. 5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties of any kind (including reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Consultant fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused any negligent or wrongful act, error, or omission of Consultant, its officers, agents, employees, or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. 5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 295 of 828 2671/031858-0001 7630421.2 a05/22/20 -8- all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. 5.3 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity. SECTION 6. STATUS OF CONSULTANT. 6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents is in any manner officers, officials, employees, or agents of City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. SECTION 7. LEGAL REQUIREMENTS. 7.1 Governing Law. The laws of the State of California shall govern this Agreement. 7.2 Compliance with Applicable Laws. Consultant and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Consultant shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Any and all work subject to prevailing wages, as determined by the Director of Industrial Relations of the State of California, will be the minimum paid to all laborers, including Consultant’s employee and subcontractors. It is understood that it is the responsibility of Consultant to determine the correct scale. The State Prevailing Wage Rates may be obtained from the California Department of Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 296 of 828 2671/031858-0001 7630421.2 a05/22/20 -9- Industrial Relations (“DIR”) pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415-703-4774. Appropriate records demonstrating compliance with such requirement shall be maintained in a safe and secure location at all times, and readily available at City’s request. Consultant shall indemnify, defend, and hold City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers harmless from and against any liability, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by Consultant or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Consultant or any party performing the Services to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all public works (as defined by applicable law), Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Consultant acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Consultant shall require the same of all subcontractors. 7.3 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City. SECTION 8. TERMINATION AND MODIFICATION. 8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. 8.2 Termination by Consultant. Consultant may cancel this Agreement upon 30 days’ written notice to City. 8.3 Consequences of Termination. In the event of termination, Consultant shall be entitled to compensation for the Services performed up to the date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or City in connection with this Agreement. Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 297 of 828 2671/031858-0001 7630421.2 a05/22/20 -10- 8.4 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period. 8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. 8.6 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in Consultant’s proposal, without prior written approval of the Contract Administrator. In the event that key personnel leave Consultant’s employ, Consultant shall notify City immediately. 8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the expiration or termination of this Agreement. 8.8 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City's remedies shall include, but not be limited to, any or all of the following: a. Immediately terminate this Agreement; b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different consultant to complete the Services described in Exhibit A; and/or d. Charge Consultant the difference between the cost to complete the Services described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the Services. SECTION 9. KEEPING AND STATUS OF RECORDS. 9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form that Consultant prepares Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 298 of 828 2671/031858-0001 7630421.2 a05/22/20 -11- or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of City. Consultant hereby agrees to deliver those documents to City upon the expiration or termination of this Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for City and are not necessarily suitable for any future or other use. Any use of such documents for other projects by City shall be without liability to Consultant. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. 9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents and Data”). Consultant shall require all subcontractors to agree in writing that City is granted a non- exclusive and perpetual license for any Documents and Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents and Data. Consultant makes no such representation and warranty in regard to Documents and Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 9.3 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for the Services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. 9.4 Inspection and Audit of Records. Any records or documents that Section 9.3 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. SECTION 10. MISCELLANEOUS PROVISIONS. 10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 299 of 828 2671/031858-0001 7630421.2 a05/22/20 -12- any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose. 10.2 Applicable Law; Venue. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County. 10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. 10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 10.5 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 10.7 Consultant Representative. All matters under this Agreement shall be handled for Consultant by Kari Cano (“Consultant’s Representative”). The Consultant’s Representative shall have full authority to represent and act on behalf of Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 10.8 City Contract Administration. This Agreement shall be administered by a City employee, Brett Hamilton, Sr. Planner (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. The Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Consultant shall not accept direction or orders from any person other than the Contract Administrator or his designee. 10.9 Notices. Any written notice to Consultant shall be sent to: Kimley-Horn and Associates, Inc. Attn: Kari Cano 3880 Lemon Street, Suite 420 Riverside, CA 92501 Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 300 of 828 2671/031858-0001 7630421.2 a05/22/20 -13- Any written notice to City shall be sent to the Contract Administrator at: City of Menifee 29844 Haun Road Menifee, CA 92586 Attn: Brett Hamilton, Sr. Planner with a copy to: City Clerk City of Menifee 29844 Haun Road Menifee, CA 92586 10.10 Professional Seal. Where applicable in the determination of the Contract Administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled “Seal and Signature of Registered Professional with report/design responsibility,” as in the following example. __________________________________________ Seal and Signature of Registered Professional with report/design responsibility. 10.11 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 10.12 Integration. This Agreement, including the scope of services attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. 10.14 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 301 of 828 2671/031858-0001 7630421.2 a05/22/20 -14- 10.15 Nondiscrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10.16 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.17 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 10.18 No Undue Influence. Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Consultant, or from any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. 10.19 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Services to be performed under this Agreement. [Signatures on Following Page] Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 302 of 828 2671/031858-0001 7630421.2 a05/22/20 -15- IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date. CITY OF MENIFEE Armando G. Villa, City Manager Attest: Sarah A. Manwaring, City Clerk Approved as to Form: Jeffrey T. Melching, City Attorney CONSULTANT Brian Gillis, Vice President Margit Allen, AICP, Assistant Secretary [Note: 2 officer’s signatures required if Consultant is a corporation, unless provided with a certificate of secretary in-lieu] Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 303 of 828 2671/031858-0001 7630421.2 a05/22/20 EXHIBIT A EXHIBIT A SCOPE OF SERVICES Services shall include preparation of Environmental Impact Report (EIR) for the Plot Plan No. 2019-005 (Motte-Rancon Distribution Center) in the not-to-exceed amount of TWO HUNDRED FORTY SIX THOUSAND FIVE HUNDRED SIXTY DOLLARS AND ZERO CENTS ($246,560.00) as further detailed in the following page(s). Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 304 of 828 2671/031858-0001 7630421.2 a05/22/20 -2- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 305 of 828 2671/031858-0001 7630421.2 a05/22/20 -3- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 306 of 828 2671/031858-0001 7630421.2 a05/22/20 -4- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 307 of 828 2671/031858-0001 7630421.2 a05/22/20 -5- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 308 of 828 2671/031858-0001 7630421.2 a05/22/20 -6- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 309 of 828 2671/031858-0001 7630421.2 a05/22/20 -7- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:27 Menifee Mayor and City Council January 20,2021 Page 310 of 828 2671/031858-0001 7630421.2 a05/22/20 -8- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:28 Menifee Mayor and City Council January 20,2021 Page 311 of 828 2671/031858-0001 7630421.2 a05/22/20 -9- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:29 Menifee Mayor and City Council January 20,2021 Page 312 of 828 2671/031858-0001 7630421.2 a05/22/20 -10- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:30 Menifee Mayor and City Council January 20,2021 Page 313 of 828 2671/031858-0001 7630421.2 a05/22/20 -11- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:31 Menifee Mayor and City Council January 20,2021 Page 314 of 828 2671/031858-0001 7630421.2 a05/22/20 -12- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:32 Menifee Mayor and City Council January 20,2021 Page 315 of 828 2671/031858-0001 7630421.2 a05/22/20 -13- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:33 Menifee Mayor and City Council January 20,2021 Page 316 of 828 2671/031858-0001 7630421.2 a05/22/20 -14- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:34 Menifee Mayor and City Council January 20,2021 Page 317 of 828 2671/031858-0001 7630421.2 a05/22/20 -15- Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:35 Menifee Mayor and City Council January 20,2021 Page 318 of 828 January 20, 2021 680/031858-0003 14598110.2 a01/05/21 CORE5 INDUSTRIAL PARTNERS LLC 1230 PEACHTREE STREET NE SUITE 3560 ATLANTA, GA 30309 Re: Agreement for the Deposit and Reimbursement of fees incurred by the City of Menifee in Conducting and Processing Analysis under the California Environmental Quality Act of PLOT PLAN NO. 2019-005 (“MOTTE-RANCON DISTRIBUTION CENTER PROJECT”) Dear Ms. Wilson: CORE5 INDUSTRIAL PARTNERS LLC (“Developer”) has requested that the City of Menifee (“City”) consider PLOT PLAN NO. 2019-005 (“MOTTE-RANCON DISTRIBUTION CENTER PROJECT generally located on Sherman Road, south of Ethanac Road, proposes development of Two (2) new concrete tilt-up industrial buildings totaling 1,461,650 square feet (385,970 SF & 1,075,680 SF) on approximately 76.38 acres. The project includes a General Plan Amendment and Specific Plan Amendment to change portions of the site from Heavy Industrial and Business Park to Specific Plan (Menifee North SP)(“Project”). To conduct its review and analysis of the Project, the City is required to conduct an environmental analysis (“CEQA Analysis”) as required by the California Environmental Quality Act, Public Resources Code section 21000 et seq., and its implementing guidelines found at Title 14 of the California Code of Regulations section 15000 et seq. The City will commence to take the steps necessary, at Developers sole expense so that the City will be able to conduct and complete the CEQA Analysis. Developer has indicated that it is prepared to reimburse the City for all costs associated with the City’s conduct, processing, and consideration of the CEQA Analysis including without limitation in-house staff time and resources, environmental consultant time and resources, City’s legal counsel’s time and resources, and other third party cost items. For example, the costs incurred by the City to engage an environmental review consultant, and any necessary sub-consultants or technical consultants, to conduct the CEQA Analysis shall be borne by Developer. This letter serves as an “Initial Deposit Agreement” by and between Developer and the City. To assist the City in undertaking their consideration of whether or not to approve the Project, Developer agrees to provide the City with an initial deposit in the amount of $311,899 Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:36 Menifee Mayor and City Council January 20,2021 Page 319 of 828 Ms. Linda Booker, Executive VP/CFO January 20, 2021 Page 2 680/031858-0003 14598110.2 a01/05/21 (“Initial Deposit”). The Initial Deposit is the estimated full amount of the costs to be incurred by the City in or in connection with the conduct, processing, review, evaluation, and action taken on the CEQA Analysis (“Analysis Costs”). The Initial Deposit shall be deposited with the City, to the attention of the Finance Director, on or before January 11, 2021 (“Effective Date”). The Initial Deposit shall be used to reimburse the Analysis Costs. If at any time the City in its sole discretion determines that the Analysis Costs will exceed the amount of the Initial Deposit, then Developer shall, within ten (10) days of receipt of written demand from the City, supplement the deposit amount so that the amount remaining on deposit with the City equals all remaining estimated Analysis Costs (“Deposit Supplement”). The City may from time to time repeat the process of revising the estimated Analysis Costs and requiring a revised deposit amount from Developer (upon ten (10) days written notice) (“Further Deposit Supplement”). If Developer fails to timely provide a Deposit Supplement or Further Deposit Supplement, the City may without further notice cease all work on the CEQA Analysis and order that all consultants, attorneys and third parties do the same (“Stop Work Order”). Developer understands and acknowledges that, even if the deposit is fully exhausted, it shall remain fully responsible for Analysis Costs incurred by the City up to the date that the City issues a Stop Work Order. Any unspent monies will be reimbursed to Developer within thirty (30) days upon receipt of the project’s final accounting. CORE5 INDUSTRIAL PARTNERS LLC is making an Initial Deposit and possibly a Deposit Supplement and Further Deposit Supplements (the “Deposit”). If CORE5 INDUSTRIAL PARTNERS LLC terminates in writing the CEQA Analysis, or once the Project is entitled, City will refund to CORE5 INDUSTRIAL PARTNERS LLC the remaining funds from the Deposit within thirty (30) days upon receipt of the project’s final accounting. Developer understands and acknowledges that City shall exercise its sole and absolute discretion in selecting and providing direction to any consultants or other third parties in connection with the CEQA Analysis. It is anticipated that the CEQA Analysis will be presented to the Menifee City Council for consideration and potential action in the future. Developer and the City understand that the City is reserving the right to exercise its sole and absolute discretion as to all matters over which the City is, by law, entitled or required to exercise discretion. By executing this Initial Deposit Agreement, the City is not committing or agreeing to undertake any activity requiring the subsequent discretion of the City , or any department of the City. The City’s execution of this Initial Deposit Agreement is merely an agreement to allow the necessary work to be completed, at Developer’s expense, to bring the CEQA Analysis forward for City consideration. Nothing in this Initial Deposit Agreement shall be deemed to constitute a commitment by the City to approve or Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:37 Menifee Mayor and City Council January 20,2021 Page 320 of 828 Ms. Linda Booker, Executive VP/CFO January 20, 2021 Page 3 680/031858-0003 14598110.2 a01/05/21 certify the CEQA Analysis, or a prejudgment of the matters required to be considered as part of the decision whether or not to approve the Project. Please document Developer’s concurrence with these terms and limitations by signing below and returning the originally executed letter to me, along with the Initial Deposit. Very truly yours, CITY OF MENIFEE Cheryl Kitzerow, Community Development Director APPROVED AS TO FORM: By: Jeffrey Melching, City Attorney ACCEPTANCE OF INITIAL DEPOSIT AGREEMENT: CORE5 INDUSTRIAL PARTNERS By: Date: Ms. Linda Booker, Executive VP/CFO Item Title:10.8 "Motte-Rancon Distribution Center"Environmental Impact Report Agreements Item Page Number:38 Menifee Mayor and City Council January 20,2021 Page 321 of 828 CITY OF MENIFEE SUBJECT: Bond Reduction for Street and Drainage Improvements; Associated with Tract Map 28789-1; Pinehurst, LLC. MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Vanessa Barrera, Emergency Management Analyst REVIEWED BY: Yolanda Macalalad, Assistant City Engineer APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Approve 90% Bond Reduction of the faithful performance component a 100% reduction of the labor & materials component of the street and drainage bond for Tract Map 28789-1, located south of Newport Road on the east side of Evans Road. DISCUSSION Tract Map 28789-1 is a proposed subdivision of 11.92 gross acres into 51 lots for residential use. The site, owned by Pinehurst, LLC (Developer), is located south of Newport Road on the east side of Evans Road, as shown on the attachment. To comply with the project’s conditions of approval, the Developer entered into bonds and agreements with the City on October 19, 2016 and posted securities to guarantee completion of the required improvements. Pinehurst, LLC, has completed the required improvements and is requesting the reduction of the faithful performance component of the security to 10%, and a 100% reduction of the labor & materials component of the security. Staff reviewed the request and has determined that the improvements have been constructed in such a way that justifies the requested reductions. A. Existing Tract Map 28789-1 Improvement Bonds: Improvement Security Faithful Performance Labor & Material Streets and Drainage 757219S $ 453,500 $ 226,750 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 322 of 828 B. 90% Reduced Bond: Improvement Security Faithful Performance Labor & Material Street and Drainage 757219S $45,350.00 N/A STRATEGIC PLAN OBJECTIVE Regular City Business. FISCAL IMPACT There is no fiscal impact to the City General Fund, the Developer paid the fees and deposits to pay for staff time in inspecting the completed improvements and the preparation of all documents required for the proposed bond reduction. ATTACHMENTS 1. Map of the Subject Property 2. Executed Bonds & Agreements Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 323 of 828 Item Title: 10.9 Bond Reduction for Street and Drainage Improvements; Associated with Tract Map 28789-1; Pinehurst, LLC.Item Page Number: 3Menifee Mayor and City Council                                                                               January 20, 2021Page 324 of 828 AGREEMENT TRACT MAP 28789-1 FOR THE CONSTRUCTION OF ROAD/DRAINAGE IMPROVEMENTS This Agreement for Construction of Road and Drainage Improvements (“Agreement”) is made and entered into by and between the City of Menifee, State of California, hereinafter called City, and Pinehurst, LLC, a California Limited Liability Company, hereinafter called Developer. WITNESSETH: FIRST: Developer, as part of the City’s consideration of the final map for that certain land division known as TR 28789-1 , hereby agrees, at Developer's own cost and expense, to furnish all labor, equipment and materials necessary to perform and complete, within Seven Hundred and Thirty Days from the date this Agreement is executed, in a good and workmanlike manner, all road and drainage improvements in accordance with those Road Plans for said land division which have been approved by the City Engineer, a copy of which are on file in the office of the City of Menifee Engineering Department, and do all work incidental thereto in accordance with the standards set forth in Riverside County Ordinance No. 460 and City Standards and Specifications, as amended, or its successor, which are hereby expressly made a part of this Agreement. All the above required work shall be done under the inspection of and to the satisfaction of the City Engineer, and shall not be deemed complete until approved and accepted in writing as complete by the City Engineer. Developer further agrees to maintain the above required improvements for a period of one year following acceptance by the City, and during this one year period to repair or replace, to the satisfaction of the City Engineer, any defective work or labor done or defective materials furnished. Developer further agrees that all underground improvements covered by this Agreement shall be completed prior to the paving of any roadway. The estimated cost of said work and improvements is the sum of Four Hundred Fifty Three Thousand Five Hundred and no/100, Dollars, $ 453,500.00, (“Estimated Cost”). Prior to commencing any work, Developer shall, at its sole cost, expense, and liability, obtain all necessary permits and licenses and give all necessary and incidental notices required for the lawful construction of the work and performance of Developer’s obligations under this Agreement. Developer shall conduct the work in full compliance with the regulations, rules, and other requirements contained in any permit or license issued to Developer. SECOND: Developer agrees to pay to City the actual cost of such inspections of the work and improvements as may be required by the City Engineer. Developer shall, at its sole cost, expense. and liability, pay all fees, charges, and taxes arising out of construction of the work performed pursuant to this Agreement, including, but not limited to fees for checking, filing, and processing of improvement plans and specifications and for inspecting the construction of said work. These fees must be paid in full prior to approval of the final map and improvement plans, unless such fees have not yet been assessed and are not yet due and payable. The fees referred to the above are not necessarily the only City fees, charges, or other cost that have been or will be imposed on the subdivision and its development, and this Agreement shall in no way exonerate or relieve Developer from paying such other applicable fees, charges and/or cost. Developer further agrees that, if suit is brought upon this Agreement or any bond guaranteeing the completion of the road and drainage improvements, all costs and reasonable expenses and fees incurred by City in successfully enforcing such obligations shall be paid by Developer, including reasonable attorney's fees, and that, upon entry of judgment, all such costs, expenses and fees shall be taxed as costs and included in any judgment rendered. Developer, not the City, shall be legally responsible for making any payment and/or taking any action required by any such judgment. THIRD: City shall not, nor shall any officer or employee of City, be liable or responsible for any accident, loss, injury, or damage happening or occurring to the works specified in this agreement prior to the completion and acceptance thereof, nor shall City or any officer or employee thereof, be liable for any persons or property injured or damage by reason of the nature of the work, or by reason of the acts or omissions of Developer, its agents or employees, in the performance of the work, and all or said liabilities are assumed by Developer. Developer shall defend, indemnify, and hold harmless City, its elected officials, officers, employees, agents, and volunteers from any and all actual or alleged claims, demands, causes of action, liability, loss, administrative action of any federal, state, or local government body or agency, arising out of or incident to any Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 325 of 828 acts, omissions, negligence, or willful misconduct of Developer, its personnel, employees, agents, or contractors in connection with or arising out of construction or maintenance of the work contemplated under this Agreement, or performance of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, officers, employees, and/or agents for all legal expenses, and cost incurred by each of them. This indemnification excludes only such portion of any claim, demand, cause of action, liability, loss, damage, penalty, fine, or injury, to property or persons, including wrongful death, which is caused by the negligence or willful misconduct of City as determined by a court or administration body of competent jurisdiction. Developer’s obligation to indemnify shall survive the expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, officers, employees, agents, or volunteers. FOURTH: The Developer hereby grants to City, or any agent or employee of City, the irrevocable permission to enter without any additional consent upon the lands of the subject land division for the purpose of completing the improvements. This permission shall terminate in the event that Developer has completed work within the time specified or any extension thereof granted by the City. Under such circumstances, Developer shall be responsible for any and all expenses, costs, liabilities, and fees (including attorneys’ fees and litigation cost) (“Completion Costs”) incurred by the City in connation with ensuring that the work contemplated by this Agreement. Developer shall remit such completion Costs to the City no more than thirty (30) days of the date that the City notifies Developer of such Completions Cost. Failure to remit the Completion Costs in a timely matter shall result in the City having the right to invoke any remedy provided by law including the encumbrance of the any property owned by Developer in the amount equal to any unpaid Completion Cost. FIFTH: The Developer shall provide adequate notice and warning to the traveling public of each and every hazardous or dangerous condition caused or created by the construction of the works of improvement at all times up to the completion and formal acceptance of the works of improvement. The Developer shall protect all persons from such hazardous or dangerous conditions in compliance with State law regulations and standards for traffic regulatory control methods, including, but not limited to, stop signs, regulatory signs or signals, barriers, or detours. SIXTH: Developer, its agents and employees, shall give written notice to the City Engineer at least forty eight (48) hours before beginning any work. Developer shall provide the City Engineer or his designee reasonable access to facilities for obtaining full information with respect to the progress and manner of work and shall fully cooperate with any investigation regarding the same. SEVENTH: If Developer, its agents or employees, neglects, refuses, or fails to prosecute the work with such diligence as to insure its completion within the specified time, or within such extensions of time which have been granted by City, or if Developer violates, neglects, refuses, or fails to perform satisfactorily any of the provisions of the plans and specifications, Developer shall be in default of this Agreement and notice of such default shall be served upon Developer. City shall have the power, on recommendation of the City Engineer, to terminate all rights of Developer as a result of such default. The determination by the City Engineer of the question as to whether any of the terms of the Agreement or specifications have been violated, or have not been performed satisfactorily, shall be conclusive upon the Developer, and any and all parties who may have any interest in the Agreement or any portion thereof. The foregoing provisions of this section shall be in addition to all other rights and remedies available to City under this Agreement or the law. The failure of the Developer to commence or complete construction shall not relieve the Developer or surety from completion of the improvements required by this Agreement. EIGHTH: Developer agrees to file with City, prior to the date that this Agreement is executed, both a good and sufficient improvement security in an amount not less than the Estimated Costs of the work and improvements for the faithful performance of the terms and conditions of this Agreement, and good and sufficient security for payment of labor and materials in the amount prescribed by Article XVII of Riverside County Ordinance 460 as amended to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California. Developer agrees to renew each and every said bond or bonds with good and sufficient sureties or increase the amount of said Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 326 of 828 bonds, or both, within ten (10) days after being notified by the City Engineer that the sureties or amounts are insufficient. Notwithstanding any other provisions herein, if Developer fails to take such action as is necessary to comply with said notice, Developer shall be in default of this Agreement unless all required improvements are completed within ninety (90) days of the date on which the City Engineer notified Developer of the insufficiency of the security or the amount of the bonds or both. NINTH: It is further agreed by and between the parties hereto, including the surety or sureties on the bonds securing this Agreement, that, in the event it is deemed necessary to extend the time of completion of the work contemplated to be done under this Agreement, extensions of time may be granted in writing, from time to time, by City, either at its own option, or upon request of Developer, and such extensions shall in no way affect the validity of this Agreement or release the surety or sureties on such bonds. Developer further agrees to maintain the aforesaid bond or bonds in full force and effect during the terms of this Agreement, including any extensions of time as may be granted therein. TENTH: It is understood and agreed by the parties hereto that if any part, term or provision of this Agreement is by the courts held to be unlawful and void, the validity of the remaining portions shall not be affected and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain that particular part, term or provision held to be invalid. ELEVENTH: This Agreement contains the entire Agreement of the parties as to the matters set forth herein. No waiver of any term or condition of this Agreement shall be a continuing waiver thereof. TWELFTH: In any action or proceeding arising out of this Agreement, or the transactions contemplated hereby, the prevailing party therein shall be entitled to recover from the other party thereto the reasonable attorneys’ and paralegals’ fees, court costs, filing fees, publication cost and other expenses incurred by the prevailing party in connection therewith, at trial and all appellate proceedings. THIRTEENTH: This Agreement may be amended at any time by the mutual consent of the parties by a written instrument signed by both parties. FOURTEENTH: The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that, by so executing this Agreement, the parties hereto are formally bound to the provisions of this Agreement. FIFTEENTH: Developer shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of City. Any attempt to do so shall be null and void, and any assignee, hypothecate, or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecate, or transfer. Unless specifically stated to the contrary in City’s written consent, any assignment, hypothecation, or transfer shall not release or discharge Developer from any duty or responsibility under this Agreement. In the event that City consents in writing t such an assignment, any assignee, hypothecate, or transferee shall expressly assume Developer’s obligations hereunder by a written agreement in a form, and containing such surety, as is reasonably acceptable to City. SIXTEENTH: Developer shall perform all work contemplated by this Agreement in accordance with all approved maps, conditions, plans, specifications, standard drawings, and special amendments thereto on file with the City, as well as all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other requirements. Developer and its contractors, if any, shall perform all work required to construct all work performed pursuant to this Agreement in a skillful and workmanlike manner, and consistent with the standards general recognized as being employed by professionals in the same discipline in the State of California. Developer represents and maintains that it or its contractors shall be skilled in the professional calling necessary to perform the work. Developer warrants that all of its employees and contractors shall have sufficient skill and experience to perform the work assigned to them, and that they shall have all licenses, permits, qualifications, and approvals shall maintained throughout the term of this Agreement. The agreement, hypothecation, or transfer shall be to the satisfaction of the City Attorney and shall include provisions requiring the assignee to post bonds or submit another form of financial security, satisfactory to City and approved by the City Attorney, to guarantee construction of the work covered by this Agreement. Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 327 of 828 The Agreement shall survive the recordation of the Final Map and shall be recorded against each of the proposed lots to inform successors and assigns of the required work covered by this Agreement to be constructed and their time frame for construction. Following any permitted assignment, hypothecation, or transfer of the work covered by this Agreement, as set forth in this Section, City shall release Developer from its obligations so assigned and shall release to Developer any bonds or other security posted to secure the work covered by this Agreement so assigned; provided, however, that City shall not release any security or undertakings given to secure the performance of any of the work covered by this Agreement not assigned, hypothecated, or transferred. SEVENTEENTH: This agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instruments. EIGHTEENTH: This Agreement is to be governed by the laws of the State of California. NINETEENTH: Any notice or notices required or permitted to be given pursuant to this Agreement shall be served on the other party by mail, postage prepaid, at the following addresses: City Developer City of Menifee 29714 Haun Road Menifee, CA 92586 Pinehurst, LLC 1000 Dove Street, Suite 100 Newport Beach, CA 92660 TWENTIETH: City’s failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or City’s waiver of any breach of this Agreement, shall not relieve Developer of any of its obligations under this Agreement, whether of the same or similar type. The foregoing shall be true whether City’s actions are intentional or unintentional. TWENTY-FIRST: Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the parties, and their successors, heirs, personal representatives, or assigns. This Section shall not be construed as an authorization for any Party to assign any right or obligation. Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 328 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 329 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 330 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 331 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 332 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 333 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 334 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 335 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 336 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 337 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 338 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 339 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 340 of 828 Item Title:10.9 Bond Reduction for Street and Drainage Improvements;Associated with Tract Map 28789-1;Pinehurst, LLC. Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 341 of 828 CITY OF MENIFEE SUBJECT: 10% Warrantee Bond Release, TR 28790-2 MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Vanessa Barrera, Emergency Management Analyst REVIEWED BY: Yolanda Macalalad, Assistant City Engineer APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Approve the release of the 10% Warrantee Surety Rider for Private Street and Drainage Improvements associated with TR28790-2, which is a 12.65 gross acre 75-lot residential development within a Private Development south of Newport Road between Evans Road and Winter Hawk Road. DISCUSSION Tract Map 28790-2 is a subdivision of 12.65 gross acres of land into 75 lots for residential use, approved by City Council on August 5, 2015. The development is located within a private development south of Newport Road between Evans Road and Winter Hawk Road. To comply with the project’s conditions of approval, the developer Pinehurst, LLC (Developer) entered into Bonds and Agreements with the City on August 5, 2015 and posted securities to guarantee completion of the required improvements. The required improvements were completed to City specifications. Therefore, on November 6, 2019 the City reduced the improvement bonds by 90%; the remaining 10% was retained as a form of warranty for a minimum period of one year and can be released upon City approval. The Developer is now requesting the release of the remaining 10% warrantee bond rider. Staff completed a field review of the attached project and determined all required improvements have been completed to City specifications and standards and all project conditions have been met to allow for the full release of said bonds. The 10% Warrantee Bond Requested for release is listed as follows: Improvement Security Faithful Performance Labor & Material Street and Drainage 757219S $66,900.00 N/A Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 342 of 828 City of Menifee Staff Report 10% Warrantee Bond Release, TR 28790-2 January 20, 2021 Page 2 of 2 2 1 5 STRATEGIC PLAN OBJECTIVE Regular City Business FISCAL IMPACT: There is no fiscal impact report to the City General Fund. The Developer paid the fees and deposits to pay for staff time in inspecting the completed improvements and the preparation of all documents required for the proposed bond release. ATTACHMENTS 1. Map of the Subject Property 2. 10% Warrantee Bond Rider for Road and Drainage Improvements for TM 28790-2 3. Final SIP for TR 28790-2 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 343 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 344 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 345 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 346 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 347 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 348 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 349 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 350 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 351 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 352 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 353 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 354 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 355 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 356 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 357 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 358 of 828 Item Title:10.10 10%Warrantee Bond Release,TR 28790-2 Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 359 of 828 CITY OF MENIFEE SUBJECT: Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLC MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Vanessa Barrera, Emergency Management Analyst REVIEWED BY: Yolanda Macalalad, Assistant City Engineer APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Approve and authorize City Manager to execute Lien Agreement allowing lien on a real property, located west of Murrieta Road, east of Geary Road, and north of McLaughlin Road, as form of security to guarantee completion of required public improvements for Tract 31856; and 2. Approve and authorize City Manager to execute Subdivision Improvement Agreements for Sewer, Road & Water for Tract 31856. DISCUSSION Tract 31856 is a residential project comprised of 77 single family residential homes in the City of Menifee located west of Murrieta Road, east of Geary Road, and north of McLaughlin Road. The developer and owner, Menifee Land DV, LLC (Developer) is requesting that the City accept a lien on real property to guaranty and secure completion of the public improvements required as conditions of approval on the Project. Section 7.80.050 of the Menifee Municipal Code allows for a lien in-lieu of posting bonds as security for required public improvements, provided the developer enters into a Lien Agreement and submit an appraisal report reviewed and approved by the City. The appraisal report must be prepared by a State certified appraiser and must demonstrate that the value of the real property on which the lien is placed exceeds 120% of the construction cost of the public improvements. An appraisal report from Valbridge Property Advisors (Attachment 3) was provided by the Developer and the value of the real estate to be used for guaranteeing the required improvements meets the minimum required by Menifee Municipal Code Section 7.80.050(D). Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 360 of 828 City of Menifee Staff Report Lien Agreement and Subdivision Improvement Agreements, TR 31856, Menifee Land DV, LLC January 20, 2021 Page 2 of 2 2 1 4 The attached Lien Agreement (Attachment 1), prepared by the developer, was reviewed, and approved by the City Attorney in accordance with City policies and Menifee Municipal Code Title 7-Subdivisions. In compliance with Title 7, the Developer is entering into Subdivision Improvement Agreements (SIAs) (Attachment 2) with the lien as the form of security. The SIAs, which are attached and incorporated into the Lien Agreement, stipulate that the required public improvements must be completed within 24 months of Council approval. The estimated cost of the subdivision improvements and the value of the property subject to the lien under the Lien Agreement are summarized in the following table: Subdivision Improvement Agreement Amount Sewer System Improvement (20% included)$350,500 Road Improvement (20% included)$3,384,000 Water System Improvement (20% included)$342,000 Total Cost of Improvements (20% included)$4,076,500 Total Appraised Value of Property to be used for Lien $6,000,000 STRATEGIC PLAN OBJECTIVE Regular City Business FISCAL IMPACT: There is no fiscal impact on the City General Fund with the recommended action. The developer paid the necessary fees and deposits to pay for staff and City Attorney time in preparing and reviewing all necessary documents. ATTACHMENTS 1. Lien Agreement 2. Subdivision Improvement Agreements- Sewer, Road & Water System Improvements 3. Appraisal Report 4. Map Exhibit Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 361 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 362 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 363 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 364 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 365 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 366 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 367 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 368 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 369 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 370 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 371 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 372 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 373 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 374 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 375 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 376 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 377 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 378 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 379 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 380 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 381 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 382 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 383 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 384 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 385 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:27 Menifee Mayor and City Council January 20,2021 Page 386 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:28 Menifee Mayor and City Council January 20,2021 Page 387 of 828 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:29 Menifee Mayor and City Council January 20,2021 Page 388 of 828 Appraisal Report Hypothetical Value of Vacant Industrial Land Menifee, Riverside County, California 92585 Report Date: September 29, 2020 FOR: Mohammad Kashan Menifee Land DV 26040 Acer Mission Viejo, CA 92691 Client Number: APN: 330-560-001 et al. Valbridge Property Advisors | Los Angeles-Inland Empire 825 Colorado Boulevard, Suite 243 Los Angeles, CA 90041 Valbridge File Number: 626-744-0428 phone CA01-20-0311-000 valbridge.com Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:30 Menifee Mayor and City Council January 20,2021 Page 389 of 828 © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire 825 Colorado Boulevard, Suite 243 Los Angeles, CA 90041 626-744-0428 phone valbridge.com September 29, 2020 Randy Walker 951-675-2223 rwalker@valbridge.com Mohammad Kashani Menifee Land DV 26040 Acer Mission Viejo, CA 92691 RE: Appraisal Report Vacant Industrial Land Menifee, Riverside County, California 92585 Dear Mr. Kashan: In accordance with your request, we have performed an appraisal of the above referenced property. This appraisal report sets forth the pertinent data gathered, the techniques employed, and the reasoning leading to our value opinions. This letter of transmittal does not constitute an appraisal report and the rationale behind the value opinion(s) reported cannot be adequately understood without the accompanying appraisal report. The subject property, as referenced above, is located on the west side of Murrieta Road extending through to Geary Street and is further identified as tax parcel numbers 330-560-001 et al.. The subject site is a 25.02-acre or 1,089,871-square-foot parcel. We developed our analyses, opinions, and conclusions and prepared this report in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; and the requirements of our client as we understand them. The client in this assignment is Mohammad Kashani and the intended users of this report are Menifee Land DV & City of Menifee and no others. The sole intended use is for bond premium relief. The value opinions reported herein are subject to the definitions, assumptions, limiting conditions, and certifications contained in this report. This is a restricted use report and only intended to be used to assist the client in understanding the value as if the property was zoned industrial. This requires a hypothetical condition as the land is currently entitled as a residential subdivision. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:31 Menifee Mayor and City Council January 20,2021 Page 390 of 828 Mr. Mohammad Kashani Mohammad Kashani Page 2 © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire The findings and conclusions are further contingent upon the following extraordinary assumptions and/or hypothetical conditions, the use of which might have affected the assignment results: Extraordinary Assumptions:  We have used the parcel size provided in the residential approved tract map in our analysis. We reserve the right to revise the appraisal if this varies significantly at a possible additional cost to the owner. Hypothetical Conditions:  The land being appraised is currently entitled for a residential subdivision with 78 lots. The client has requested that the property to be valued as one industrial lot. This requires a hypothetical condition. Based on the analysis contained in the following report, our value conclusions are summarized as follows: Respectfully submitted, Valbridge Property Advisors | Los Angeles-Inland Empire Randy Walker Senior Appraiser California License #AG032700 License Expires 12-23-2021 Calvin Cummings, MAI Senior Managing Director California License #AG005293 License Expires 10-09-2022 Component As-Is Value Type Hypothetical Market Value Property Rights Appraised Fee Simple Effective Date of Value September 21, 2020 Value Conclusion $6,000,000 $5.51 psf Value Conclusion Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:32 Menifee Mayor and City Council January 20,2021 Page 391 of 828 VACANT INDUSTRIAL LAND TABLE OF CONTENTS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Table of Contents Cover Page Letter of Transmittal Table of Contents ....................................................................................................................................................................... i  Summary of Salient Facts ....................................................................................................................................................... ii  Aerial and Front Views ............................................................................................................................................................ iv  Location Map .............................................................................................................................................................................. v  Introduction ................................................................................................................................................................................. 1  Scope of Work ............................................................................................................................................................................ 4  Regional and Market Area Analysis.................................................................................................................................... 6  City and Neighborhood Analysis ..................................................................................................................................... 15  Site Description ....................................................................................................................................................................... 19  Subject Photographs ............................................................................................................................................................. 26  Assessment and Tax Data ................................................................................................................................................... 27  Market Analysis ....................................................................................................................................................................... 28  Highest and Best Use ............................................................................................................................................................ 49  Land Valuation ......................................................................................................................................................................... 50  Reconciliation ........................................................................................................................................................................... 69  Exposure Time and Marketing Period ....................................................................................................................... 69  General Assumptions and Limiting Conditions .......................................................................................................... 70  Certification – Randy Walker .............................................................................................................................................. 75  Certification – Calvin Cummings, MAI ............................................................................................................................ 76  Addenda .................................................................................................................................................................................... 77  Additional Subject Photographs .................................................................................................................................. 78  Letter of Engagement ...................................................................................................................................................... 84  Legal Description ............................................................................................................................................................... 92  Purchase Sale Agreement .............................................................................................................................................. 93  Glossary ............................................................................................................................................................................... 118  Qualifications..................................................................................................................................................................... 125  Valbridge Property Advisors Information / Office Locations ......................................................................... 129  Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:33 Menifee Mayor and City Council January 20,2021 Page 392 of 828 VACANT INDUSTRIAL LAND SUMMARY OF SALIENT FACTS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Summary of Salient Facts Property Identification Client Identification Number APN: 330-560-001 et al. Property Address Vacant Industrial Land Menifee, Riverside County, California 92585 Latitude & Longitude 33.738576, -117.208578 Census Tract 42728 Tax Parcel Number 330-560-001 et al. Property Owner Menifee Land DV Site Zoning Economic Development Corridor - Northern Gateway (EDC- NG) FEMA Flood Map No. 06065C2055H Flood Zone X Gross Land Area 1,089,871 square feet Usable Land Area 1,089,871 square feet Total Land Area 1,089,871 square feet Valuation Opinions Highest & Best Use - As Vacant Industrial Property Reasonable Exposure Time 9 to 12 months Reasonable Marketing Time 9 to 12 months Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:34 Menifee Mayor and City Council January 20,2021 Page 393 of 828 VACANT INDUSTRIAL LAND SUMMARY OF SALIENT FACTS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Approach to Value As-Is Hypothetical Land Valuation $6,000,000 Component As-Is Value Type Hypothetical Market Value Property Rights Appraised Fee Simple Effective Date of Value September 21, 2020 Value Conclusion $6,000,000 $5.51 psf Value Indications Value Conclusion Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:35 Menifee Mayor and City Council January 20,2021 Page 394 of 828 VACANT INDUSTRIAL LAND AERIAL AND FRONT VIEWS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Aerial and Front Views AERIAL VIEW FRONT VIEW Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:36 Menifee Mayor and City Council January 20,2021 Page 395 of 828 VACANT INDUSTRIAL LAND AERIAL AND FRONT VIEWS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Location Map Item Title: 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLCItem Page Number: 37Menifee Mayor and City Council                                                                               January 20, 2021Page 396 of 828 VACANT INDUSTRIAL LAND INTRODUCTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Introduction Client and Intended Users of the Appraisal The client in this assignment is Mohammad Kashani and the sole intended users of this report are Menifee Land DV & City of Menifee. Under no circumstances shall any of the following parties be entitled to use or rely on the appraisal or this appraisal report: i. The borrower(s) on any loans or financing relating to or secured by the subject property, ii. Any guarantor(s) of such loans or financing; or iii. Principals, shareholders, investors, members or partners in such borrower(s) or guarantors. Intended Use of the Appraisal The sole intended use of this report is for bond premium relief from the City. Real Estate Identification The subject property is located at Vacant Industrial Land, Menifee, Riverside County, California 92585. The subject property is further identified by the tax parcel number 330-560-001 et al.. Legal Description Please see the Addenda attached for a legal description of the subject property as contained in the Preliminary Title Report provided to us by the client (First American Title Company, 12505000 Van Nuys Blvd, Ste. 500, Sherman Oaks, Ca. 91403; Order No. 00084308-994-VNO-RR1; recorded on December 19, 2014). Use of Real Estate as of the Effective Date of Value As of the effective date of value, the subject was residential subdivision land. Use of Real Estate as Reflected in this Appraisal Hypothetical condition valuing land as one large industrial parcel Ownership of the Property According to property detail report, title to the subject property is vested in Menifee Land DV. History of the Property Ownership of the subject property has not changed within the past three years. We have considered and analyzed the known history of the subject in the development of our opinions and conclusions. The subject was originally four separate assessor parcel numbers. At some point in the last couple of years, the owner went through the entitlement process to change the zoning to residential and subdivide the property. During that time, a buyer approached the owner who wanted to develop the property with a large industrial logistics complex. There are currently bonds or liens attached to the residential subdivision property that are paid in installments and when the subdivision is complete. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:38 Menifee Mayor and City Council January 20,2021 Page 397 of 828 VACANT INDUSTRIAL LAND INTRODUCTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire The property has just recently entered escrow for the industrial use. The purchase price is set for $6.50 per square foot or roughly $7,085,000. The escrow instructions include future quarterly payments while the subject is going through the entitlement process to have the property go to one parcel and to also have the large industrial complex approved. The buyer has purchased and approved two other large industrial logistics properties in the Inland Empire over the last couple years and is knowledgeable about the process. The subject of this appraisal is not the purchase price of the current escrow, as one would expect this value would be higher as there are some time constraints and the buyer and seller are working through the entitlement process together. The subject of the appraisal is to assist the owner in determining the hypothetical value of the land (current date of value) as one industrial parcel to work with the city to remove the bonds for the residential subdivision. Type and Definition of Value The appraisal problem is to develop an opinion of the market value of the subject property. “Market Value,” as used in this appraisal, is defined as “the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.” Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:  Buyer and seller are typically motivated.  Both parties are well informed or well advised, each acting in what they consider their own best interests;  A reasonable time is allowed for exposure in the open market;  Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and  The price represents the normal consideration for the property sold unaffected by special or creative financing or sale concessions granted by anyone associated with the sale.”1 The value conclusions apply to the value of the subject property under the market conditions presumed on the effective date of value. Please refer to the Glossary in the Addenda section for additional definitions of terms used in this report. Valuation Scenarios, Property Rights Appraised, and Effective Dates of Value Per the scope of our assignment we developed opinions of value for the subject property under the following scenarios of value: 1 Source: Code of Federal Regulations, Title 12, Banks and Banking, Part 722.2-Definitions Valuation Scenario Effective Date of Value As-Is Hypothetical Market Value of the Fee Simple Interest September 21, 2020 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:39 Menifee Mayor and City Council January 20,2021 Page 398 of 828 VACANT INDUSTRIAL LAND INTRODUCTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire We completed an appraisal inspection of the subject property on September 21, 2020. Date of Report The date of this report is September 29, 2020. List of Items Requested but Not Provided  preliminary title report Assignment Challenges Assumptions and Conditions of the Appraisal This appraisal assignment and the opinions reported herein are subject to the General Assumptions and Limiting Conditions contained in the report and the following extraordinary assumptions and/or hypothetical conditions, the use of which might have affected the assignment results. Extraordinary Assumptions:  We have used the parcel size provided in the residential approved tract map in our analysis. We reserve the right to revise the appraisal if this varies significantly at a possible additional cost to the owner. Hypothetical Conditions:  The land being appraised is currently entitled for a residential subdivision with 78 lots. The client has requested that the property to be valued as one industrial lot. This requires a hypothetical condition. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:40 Menifee Mayor and City Council January 20,2021 Page 399 of 828 VACANT INDUSTRIAL LAND SCOPE OF WORK © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Scope of Work The elements addressed in the Scope of Work are (1) the extent to which the subject property is identified, (2) the extent to which the subject property is inspected, (3) the type and extent of data researched, (4) the type and extent of analysis applied, (5) the type of appraisal report prepared, and (6) the inclusion or exclusion of items of non-realty in the development of the value opinion. These items are discussed as below. Extent to Which the Property Was Identified The three components of the property identification are summarized as follows:  Legal Characteristics - The subject was legally identified via property detail report.  Economic Characteristics - Economic characteristics of the subject property were identified via information provided by the client and the property contact, as well as a comparison to properties with similar locational and physical characteristics.  Physical Characteristics - The subject was physically identified via an exterior inspection of the property. Extent to Which the Property Was Inspected We inspected the subject on September 21, 2020. Type and Extent of Data Researched We researched and analyzed: (1) market area data, (2) property-specific market data, (3) zoning and land-use data, and (4) current data on comparable listings and transactions. We also interviewed people familiar with the subject market/property type. Type and Extent of Analysis Applied (Valuation Methodology) We observed surrounding land use trends, the condition of any improvements, demand for the subject property, and relevant legal limitations in concluding a highest and best use. We then valued the subject based on that highest and best use conclusion. Appraisers develop an opinion of property value with specific appraisal procedures that reflect three distinct methods of data analysis: the Cost Approach, Sales Comparison Approach, and Income Capitalization Approach. One or more of these approaches are used in all estimations of value.  Sales Comparison Approach - In the Sales Comparison Approach, value is indicated by recent sales and/or listings of comparable properties in the market, with the appraiser analyzing the impact of material differences in both economic and physical elements between the subject and the comparables.  Direct Capitalization: Land Residual Method - The Land Residual Methodology involves estimating the residual net income to the land by deducting from total potential income the portion attributable to the improvements, assuming development of the site at its highest and best use. The residual income is capitalized at an appropriate rate, resulting in an indication of land value. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:41 Menifee Mayor and City Council January 20,2021 Page 400 of 828 VACANT INDUSTRIAL LAND SCOPE OF WORK © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire  Direct Capitalization: Ground Rent Capitalization – A market derived capitalization rate is applied to the net income resulting from a ground lease. This can represent the leased fee or fee simple interest, depending on whether the income potential is reflective of a lease in place or market rental rates.  Yield Capitalization: Subdivision Development Method – Also known as Discounted Cash Flow Analysis (DCF), the methodology is most appropriate for land having multiple lot development in the near term as the highest and best use. The current site value is represented by discounting the anticipated cash flow to a present value, taking into consideration all necessary costs of development, maintenance, administration, and sales throughout the absorption period. All of these approaches to value were considered. We assessed the availability of data and applicability of each approach to value within the context of the characteristics of the subject property and the needs and requirements of the client. Based on this assessment, we relied upon the Sales Comparison Approach. The Cost Approach was not used because this is an appraisal of land only The Income Capitalization Approach was not used because this is an appraisal of land only Further discussion of the extent of our analysis and the methodology of each approach is provided later in the respective valuation sections. Appraisal Conformity and Report Type We developed our analyses, opinions, and conclusions and prepared this report in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA); and the requirements of our client as we understand them. This is an Appraisal Report as defined by the Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2a. Personal Property/FF&E All items of non-realty are excluded from this analysis. The opinion of market value developed herein is reflective of real estate only. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:42 Menifee Mayor and City Council January 20,2021 Page 401 of 828 VACANT INDUSTRIAL LAND REGIONAL AND MARKET AREA ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Regional and Market Area Analysis REGIONAL MAP Overview The subject is located in Menifee, in Riverside County. It is part of the Riverside-San Bernardino MSA. Location and Boundaries The subject is in the southern region of the state of California, in the Riverside-San Bernardino- Ontario Metropolitan Statistical Area (MSA). This area comprises Riverside and San Bernardino Counties and is often referred to as the Inland Empire. The area is bordered by Inyo County to the north; San Diego and Imperial Counties to the south; the states of Nevada and Arizona to the east; and Kern, Los Angeles, and Orange Counties to the west. Economic Analysis The following economic data is taken from the 2020 Quarterly Economic Report, prepared by John E. Husing, Ph.D. Outlook for Inland Empire As 2020 began, the Inland Empire appeared on track to add 32,000 jobs, which would have been another strong year. No more. Covid-19 has brought economic growth to a halt. By April 2020, the area was down -150,700 jobs from April 2019 (-9.7%). The unemployment rate jumped to 14.4% from 3.6% the prior April. Unlike other typical downturns, this one has been the result of efforts to restrain Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:43 Menifee Mayor and City Council January 20,2021 Page 402 of 828 VACANT INDUSTRIAL LAND REGIONAL AND MARKET AREA ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire the virus by closing down sectors where people would be in close contact and asking residents to stay home. This has been particularly difficult for population serving groups like retailing, consumer services, eating and drinking, travel and entertainment. Fortunately, the lockdown will not go on forever. California has undertaken a process that is reopening sectors in a phased fashion while generally allowing people to circulate again. To attack the virus, increased testing and isolation of those infected will be used. It is hoped a vaccine will be found, but likely too late for helping 2020. Fortunately, the lockdown will not go on forever. California has undertaken a process that is reopening sectors in a phased fashion while generally allowing people to circulate again. To attack the virus, increased testing and isolation of those infected will be used. It is hoped a vaccine will be found, but likely too late for helping 2020. As the economy opens from April until December, an important question is what 2020 Inland Empire annual average employment will be. This would include the strength in January and February, weaknesses in March and April and the growth anticipated through December. In 2019, average annual employment was 1,556,900. The 2020 annual average job level is estimated at 1,486,300, down -70,600 jobs or -4.5%. This forecast was derived from the sector by sector logic explained below. To forecast 2020, past CA Employment Development Department (EDD) data were used to estimate monthly seasonality factors for each inland sector. These were applied to EDD’s January-April 2020 estimates. Next, estimates were made of how each sector would grow or decline from its seasonally adjusted April 2020 level to December 2020. These estimates were made based on recent discussions with over 30 local companies, work of other economists and this analyst’s instincts about how the sectors have historically acted. The compounded monthly growth rates by sector were calculated between April data and December estimates. They were used to estimate employment by sector for the intervening months. Those figures were adjusted to include seasonality by using the historic share that each months’ jobs have traditionally made of its annual total. Together with EDD’s January to April job levels, the result was the estimated monthly growth by sector for 2020. This allowed calculation of the annual average job growth by sector and overall, for 2020 (1,486,300) that was comparable to EDD’s published average annual 2019 level (1,556,900). Economic Base Sectors Below the rationale for the estimated growth of each sector group from April 2020 to December 2020 is explained. This starts with the sectors traditionally bringing outside money into the Inland Empire’s economic base. Fundamentally, there are five key sectors:  Logistics industry (wholesale trade, trucking, warehousing) has been the inland economy’s primary driver in recent years due to e-commerce and international trade. In April 2020, the sector was up 4,200 jobs from the April 2019 (Exhibit 9) despite losing -7,100 jobs from March to April 2020. Now, the shutdown of most retail stores plus social distancing has caused people to expand e-commerce sales dramatically. With most of Southern California’s e-commerce facilities in the Inland Empire, this should power logistics growth through December. Meanwhile, imported containers entering through the San Pedro Bay ports have fallen from a record 9.0 million twenty-foot equivalent containers (teus) in 2018 to an annualized 7.5 million in early 2020 due to tariffs and the pandemic (Exhibit 12). These difficulties should soften somewhat as world trade picks up through December. Given these factors and the sector’s Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:44 Menifee Mayor and City Council January 20,2021 Page 403 of 828 VACANT INDUSTRIAL LAND REGIONAL AND MARKET AREA ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire history, it is estimated that logistics will add jobs at 1.55% a month through December creating an annual average of 212,500. That would be 7,800 jobs above 2019, the lowest annual increase since 2012.  Health Care has been hit hard by Covid-19 as the recent shutdown hurt employment with clinics, dentists, psychologists, and residential care while also hurting hospital revenues. By April 2020, the sector was down -7,300 jobs compared to April 2019 (see Exhibit 9) largely due to a -12,000-job loss from March to April. With the California economy reopening, this situation should reverse since health care services are essential and are difficult to delay for very long. It is anticipated that the sector will move towards normal relatively fast, growing at roughly 1% per month between April and December. That would give it at an annual average of 149,400 jobs compared to 147,900 in 2019. The gain of 1,500 positions would be the lowest since 2010 (1,200).  Construction has generally been one of the Inland Empire’s strongest job creators due to heavy spending on infrastructure thanks to SB 1 funding and local sales taxes, plus the 21.2 million square feet of industrial space under construction in March 2020 and modest single family and multitenant building. The difficulties imposed by Covid-19 caused the sector to slow significantly from March to April 2020, down -13,700 jobs, leaving it -14,900 jobs below April 2019. Each of these construction elements should be back in business through December with jobs growing at 2.45% per month and yielding a compounded annual employment of 102,300 for 2020. That would be off -3,600 jobs from the 105,900 positions in 2019.  Manufacturing is no longer a major growth sector for the Inland Empire due to the high cost of operating in California. The Covid-19 shutdown slowed the sector by -5,100 jobs from March to April 2020 and left it -8,600 jobs below April 2019. With workers returning, it is assumed the sector will return to a little less employment by December (97,800) than occurred in January through March 2020 (98,400). A monthly growth rate of 0.59% would bring this about and leave the sector at an annual average of 96,300 positions in 2020, down -4,900 from 101,200 jobs in 2019. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:45 Menifee Mayor and City Council January 20,2021 Page 404 of 828 VACANT INDUSTRIAL LAND REGIONAL AND MARKET AREA ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire EMPLOYMENT BY SECTOR Inland Empire Employment By the time 2020 ends, it is forecasted that the Inland Empire will have an annual average of 1,486,300 jobs. That would be down -70,600 or -4.5% from 1,556,900 in 2019. The economy had been down - 150,700 (-9.7%) in April 2020. Source: Site-to-Do-Business (STDB Online) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Services Construction Retail Trade Manufacturing Transportation/Utilities Finance/Insurance/Real Estate Public Administration Wholesale Trade Information Agriculture/Mining Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:46 Menifee Mayor and City Council January 20,2021 Page 405 of 828 VACANT INDUSTRIAL LAND REGIONAL AND MARKET AREA ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire High Paying Sectors will decline an annual average of -3,200 jobs in 2020 (-0.9%). Health care would average 149,400 (1.0%), just below its January 2020 high of 151,600 assuming funding will be found for the sector. It will be up 1,500 jobs from its 2019 level (1.0%). Management and professions would average 48,500 positions, mid-way between its January high and April low, as some offices consolidate elsewhere using online technology. It will be -3,100 jobs below 2019 (-6.0%). The other high paying sectors will average slightly over their April levels. Higher education will be 19,600 jobs, up 400 from 2019 (2.2%). Utilities will average 4,800, up 100 from 2019 (1.4%). Mining will have 1,200 jobs, unchanged from 2019. Information will average 11,000 positions, down -500 from 2019 (-4.5%). Local government will average 79,800, down -2,400 from 2019 (-2.9%) due to budget losses. Moderate Paying Sectors will be off -6,700 jobs from 2019 (-1.1%). Logistics will be the only growing sector, averaging 212,500 jobs, roughly 3,000 jobs above its January level and up 7,800 from 2019 (3.8%) as people continue using e-commerce to avoid social contact and international trade somewhat recovers. Construction will average 102,300, about its January 2020 level, as weather improves, industrial construction and some residential building returns. It will be down -3,600 jobs from 2019 (- 3.4%). Finance, insurance and real estate will average 42,900 jobs, a little over its April level and -1,300 jobs below 2019 (-2.9%) as the economy remains somewhat flat. K-12 schools will average 134,800 positions, about the April level as schools have difficulty opening due to Covid-19. They will be -4,800 jobs below 2019 (-3.4%). Manufacturing will average 96,300, roughly its January 2020 level, and down -4,900 from 2019 (-4.9%). Low Paying Sectors have been particularly damaged by Covid-19 and will lose an average of -60,700 jobs in 2020 (-10.1%). Given the economic hardship, only social assistance will grow, reaching an average of 85,400 jobs, up 3,000 from 2019 (3.6%). Administrative support will be up slightly from April, averaging 59,900, but down -800 from 2019 (-1.3%). Agriculture will be a little below its January level at 14,100, down -1,000 jobs from 2019 (-6.6%). With accommodation (14,400) and entertainment (16,500) hit by Covid-19, both will remain close to their April levels. Respectively, they will be down - 3,800 (-20.9%) and -3,600 (-17.8%) from 2019 levels. With unemployment high, temporary agencies will average between their January high and April low at 38,800 jobs, down -4,400 from 2019 (-10.2%). Population services will remain hurt by Covid-19 with each recovering only somewhat from their April lows. Consumer services will average 37,900 jobs, up 4,200 from April (12.4%), but down -7,900 from 2019 (-17.3%). Retailing will average 170,200, up 14,800 (9.1%) from April but down -11,100 (-6.1%). Eating and drinking will average 106,000, up 20,800 from April (24.0%) but down -31,000 from 2019 (- 22.6%). Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:47 Menifee Mayor and City Council January 20,2021 Page 406 of 828 VACANT INDUSTRIAL LAND REGIONAL AND MARKET AREA ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Population Serving Sectors The Inland Empire sectors supplying services directly to residents have been particularly hurt in this downturn: Eating & Drinking has been the hardest hit sector. From March to April 2020, the group lost -45,300 jobs, putting it -52,500 jobs below April 2019. The state is now allowing outlets to open but with seating restrictions. Also, surveys reveal some hesitancy by the public to congregate. Combined, these factors make it unlikely the sector will return to normal this year. It is anticipated to go from 86,800 jobs in April to 107,600 in December 2020, up 2.72% per month as restaurants and bars reopen. Employment was 136,300 in December 2019. The result is an annual average of 106,000 jobs for 2020, down -31,000 from 137,000 in 2019. Retail Trade & Consumer Services were also shut down hard due to the pandemic. They lost -26,400 jobs from March to April 2020 leaving them -28,900 positions below April 2019. Many of these small businesses may not survive the slowdown. At the same time, some customers may be reluctant to return to normal shopping, others may simply continue their on-line shopping. Retail stores are assumed to grow from 162,400 workers in April to 177,200 at Christmas time, up 1.10% per month. The December level would be below the 191,000 in December 2019. This would give retailers an annual average of 170,200 jobs for 2020, down -11,100 jobs from 181,300 in 2019. Consumer services firms (e.g., hair stylists, gyms, auto repair) are anticipated to go from 33,500 jobs in April to 37,700 by December, up 1.49% per month. That would give them a 2020 annual average of 37,900 jobs down - 7,900 from 45,800 in 2019. Together, they will be off -19,000 jobs. Accommodation & Entertainment are the other sectors most affected by the pandemic. These relatively small sectors lost -8,500 jobs from March to April 2020 leaving them -11,000 positions below April 2019. With people reluctant to travel on planes, trains, buses and taxis, much less sit together in confined entertainment spaces, these sectors will have trouble returning to normal in 2020. Hotels and other accommodations are assumed to grow from 13,100 jobs in April to 13,800 in December 2020, up 0.65% per month. They employed 18,000 in December 2019. This would mean an annual average Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:48 Menifee Mayor and City Council January 20,2021 Page 407 of 828 VACANT INDUSTRIAL LAND REGIONAL AND MARKET AREA ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire of 14,400 jobs for 2020, down -3,800 jobs from 18,200 in 2019. Entertainment venues are anticipated to go from 16,100 jobs in April to 16,900 by December, up 0.61% per month. It reached 20,300 in December 2019. That would give entertainment outlets an annual average of 16,500 jobs for 2020, off -3,600 from 20,100 in 2019. Together, they will be down -7,400 jobs. Management & Professions employment will likely be adversely affected as many workers who have begun working on-line from home will stay there. This will tend to reduce the need for support personnel. From March to April 2020, the sector lost -5,100 jobs putting it -6,600 positions below April 2019. It will grow 1.23% per month from April to December bringing it to 50,500 jobs, just below the 51,100 in December 2019. Annual average 2020 employment will be 48,500, down -3,100 from 51,600 in 2019. Local Governments are beginning to see reductions in revenue as sales taxes fall with lower on-site sales and transient occupancy taxes decline with less travel. However, property taxes are still holding up as existing home prices grew 5.2% in Riverside County and 7.6% in San Bernardino County in first quarter 2020. Also, property assessments began being made in late 2019 and early 2020. By December 2020, local government should have 78,100 jobs compared to 83,100 in December 2019, off -5,000 jobs. The annual average 2020 employment would be 79,800, down -2,400 from 82,200 in 2019. K-12 Education will be affected as California cuts its budget due to declining income and sales taxes. How much local schools will be hurt is unsettled given the on-going debate between the Governor and Legislature. The schools dropped -6,500 jobs as schools shutdown from March to April 2020, leaving the sector -9,800 jobs below April 2019. It is assumed that most schools will reopen by year’s end. From April to December, the sector is anticipated to grow at 0.49% per month reaching 139,800 positions. That would give it an annual average of 134,800 jobs, down -4,800 from 139,600 in 2019. Other Sectors will see impacts from the slowdown. Social assistance will add 3,000 jobs as high unemployment adds to their importance. Federal and state government will add 700 due to the Census. Finance, insurance and real estate will drop -1,300 jobs due to stagnate real estate sales. Administration will lose -1,000 positions as offices need less help with staff working on-line from home. Agriculture will lose -1,000 due to the virus hitting workers particularly hard. Employment agencies will lose an annual average of -4,400 jobs as higher unemployment reduces the need for companies to depend on them. All other sectors will see annual average employment changes under 1,000 jobs. The forecast that employment will drop an annual average of -70,600 jobs from 1,556,900 in 2019 to 1,486,300 in 2020 depends heavily on the considerations outline here as to how each sector is likely to change from April to December 2020. To the extent they approach reality, the forecast will be relatively accurate. Unemployment National: In April 2020, the U.S. economy lost a record 20.5 million jobs and saw the unemployment rate spike to 14.7%, the highest since the Great Depression. The coronavirus-driven shutdowns across the country have driven U.S. unemployment to levels not seen in at least 90 years. It should be noted that the unemployment rate is based on jobless claims and it does not include underemployment or jobs that have been reduced in number of hours or in pay. The current unemployment rate for August 2020 fell to 8.4 percent. A total of 1.4 million jobs were added in August 2020. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:49 Menifee Mayor and City Council January 20,2021 Page 408 of 828 VACANT INDUSTRIAL LAND REGIONAL AND MARKET AREA ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire State: California’s unemployment rate improved to 14.9 percent in July as the state’s employers added a record 558,200 jobs, according to data released by the California Employment Development Department (EDD) from two surveys. This comes after the previous record gain of 134,200 jobs in May and record losses in the months preceding that, in a data series that dates back to 1990. California has now regained more than a quarter (26.4 percent) of the 2,625,500 nonfarm jobs lost during March and April as a direct result of the COVID-19 pandemic. County: The unadjusted unemployment rate for Riverside County was 13.7% in July 2020. City: The unadjusted unemployment rate for the City of Menifee was 14.1% in July 2020. Median Household Income Total median household income for the region is presented in the following table. Overall, the subject’s MSA and county compare favorably to the state and the country. Population Between 2000 and 2010, a 29% population growth rate placed the Inland Empire ahead of any other metro area in the nation with a population exceeding 2 million. Population gains were 6.6% between 2010 and 2016, growth unmatched by any other metro area in Southern California. Underpinning population gains in the Inland Empire has been solid economic growth in addition to overheated housing costs in many coastal markets. Over the most recent five-year period, cities demonstrating the strongest average annual population growth have included Lake Elsinore (3.2%), Eastvale (2.9%), Chino (2.1%), and Wildomar (1.6%)—all of which run along the Inland Empire’s western boundary. Cities farther inland have also demonstrated marked gains: Beaumont (3.2%), Indio (2.3%), and Adelanto (1.9%) all outpaced the Inland Empire significantly in the last five years, albeit with relatively small population numbers. Unemployment Rates Area YE 2015 YE 2016 YE 2017 YE 2018 YE 2019 YTD 2020 United States 6.7% 4.7% 4.1% 3.9% 3.5% 8.4% California 6.2% 5.5% 4.8% 4.3% 4.1% 14.9% Riverside County, CA 6.7% 6.1% 5.2% 4.3% 4.4% 13.7% Menifee City, CA 6.9% 5.2% 4.2% 4.1% 3.6% 14.1% Source: Bureau of Labor Statistics - Year End - National & State Seasonally Adjusted Median Household Income Estimated Projected Annual % Change Area 2020 2025 2020 - 25 United States $62,203 $67,325 1.6% California $77,500 $84,782 1.9% Riverside County, CA $67,369 $75,096 2.3% Menifee City, CA $66,867 $75,697 2.6% Source: Site-to-Do-Business (STDB Online) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:50 Menifee Mayor and City Council January 20,2021 Page 409 of 828 VACANT INDUSTRIAL LAND REGIONAL AND MARKET AREA ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire POPULATION Conclusion Economic forecasting is difficult during normal times. In 2020, we are faced with the largest variety of unknowns in modern history. Covid19 shut down much of the economy in March-April 2020. There is really no historic economic data relevant to this period of time. Right now, economists are somewhat flying blind. To establish a definite perspective, this QER is late as it was necessary to wait for the state’s May 22nd Inland Empire data release to get the full picture of how deep the April job decline had been. For the Inland Empire, one economist has ventured that we will see a “V” shaped recovery during the year. That means, the economy dove with the shutdown but will bounce back in a hurry. Another looks forward to a “Nike swoosh,” meaning a rapid decline followed by a long slow recovery. This economist sees economic growth as a “check mark,” down fast with a moderately rapid recovery though certainly not by the end of 2020. There is no doubt that economists are all making educated guesses about the future. In this QER, the attempt has been made to build a forecast for 2020 by looking at the anticipated behavior of each sector of the Inland Empire’s economy. It then discusses how annual average 2020 data is likely to compare to 2019. This process relies on the pool of knowledge we have about how the various Inland Empire sectors will act. We know logistics is heavily dependent on e-commerce which is soaring and port imports which are somewhat restrained. Hospitals have been vitally important but we know clinics, dentists and others closed but should recover quickly as many procedures cannot be delayed for long. Restaurants closed fast and we know their recovery will be slow given public fears and requirements to cut capacity. Services like hair salons and gyms shut down but we know they should recover relatively fast as pent- up demand is released. Hotels and entertainment venues slowed rapidly and we know their recovery will be delayed by people’s fears of close-knit travel and auditoriums. We all have opinions about how the economy will recover in the future. The analysis here is based upon what appears to be true about the various sectors and how that would seem to have a good chance of playing out for the economy for the rest of 2020. Population Estimated Annual % Change Projected Annual % Change Area 2010 2020 2010 - 20 2025 2020 - 25 United States 308,745,538 333,793,107 0.8% 346,021,282 0.7% California 37,253,956 39,648,525 0.6% 40,742,448 0.6% Riverside County, CA 2,189,641 2,456,530 1.2% 2,595,089 1.1% Menifee City, CA 77,519 99,249 2.8% 107,745 1.7% Source: Site-to-Do-Business (STDB Online) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:51 Menifee Mayor and City Council January 20,2021 Page 410 of 828 VACANT INDUSTRIAL LAND CITY AND NEIGHBORHOOD ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire City and Neighborhood Analysis NEIGHBORHOOD MAP Overview The subject is located in Menifee in Riverside County. The City of Menifee is located approximately 80 miles southeast of Los Angeles in the southwestern portion of Riverside County. The City incorporated on October 1, 2008 as a general law City. The City has slightly more than 90,000 residents and covers an area of over 46 square miles. It is generally bordered on the north, west, and south by the Cities of Perris, Canyon Lake, Lake Elsinore, and Murrieta and on the southwest by the City of Wildomar. To the east and northeast, the City is bordered by unincorporated county territory. Neighborhood Location and Boundaries The subject neighborhood is located in the northern section of Menifee. The area is semi-rural in nature. The neighborhood is bounded by Ethanac Road to the north, Barnett Road to the east, Rouse Road to the south, and Goetz Road to the west. Menifee Road is a large thoroughfare for the region and well as Ethanac Road. There is a freeway ramp at the 215 and Ethanac Road. Transportation Access Within the immediate area of the subject property, transportation access helps define the character of its development. Major travel and commuter routes within the area of the subject property include McLaughlin Road and Murrieta Road. Access to the area is considered average. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:52 Menifee Mayor and City Council January 20,2021 Page 411 of 828 VACANT INDUSTRIAL LAND CITY AND NEIGHBORHOOD ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Menifee is bisected by California Interstate 215, which runs north–south through the City. Known as the Escondido Freeway, I-215 travels north to join SR-60 in Moreno Valley and travels south to meet I-15 in Murrieta. Interchanges are at SR-74, Ethanac Road, McCall Boulevard, Newport Road, and Scott Road. State Route 74 travels east–west through the community of Romoland before it merges with I- 215 for three miles (northward) before splitting in Perris. Principal Employers The City of Menifee is considered a bedroom community, and also an employment center. The employment base is diverse; and includes a variety of both skilled and unskilled workers. The Mt San Jacinto College District is the largest employer in the city. The top employers in the city as of 2019 are summarized in the following chart. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:53 Menifee Mayor and City Council January 20,2021 Page 412 of 828 VACANT INDUSTRIAL LAND CITY AND NEIGHBORHOOD ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Neighborhood Land Use The subject neighborhood is a mixture of vacant land, residential uses and smaller industrial uses. Northwest of the property at the freeway Ethanac intersection, there is a large regional retail complex, anchored by Home Depot, and Winco Foods. The area is approximately 60% built out and north of Ethanac road, the area is in transition from agricultural use to industrial/commercial uses. Overall, the neighborhood is in a growth cycle but has been impacted by the current Covid pandemic. Demographics The following table depicts the area demographics within a one-, three-, and five-mile radius from the subject. Within a three-mile radius, the reported population is 38,722 with a projected growth rate of approximately 1.3% annually. There are 13,919 housing units within that three-mile radius. The growth rate is expected to be 1.2% annually. Most of the housing is owner-occupied. Our research indicates that property values in the area are stable. Neighborhood Demographics Radius 1 mile 3 miles 5 miles Population Summary 2010 Population 1,060 29,164 85,275 2020 Population Estimate 1,164 38,722 105,760 2025 Population Projection 1,235 41,377 113,517 Annual % Change (2020 - 2025)1.2% 1.3% 1.4% Housing Unit Summary 2010 Housing Units 319 11,502 32,963 % Owner Occupied 71.5% 67.6% 67.1% % Renter Occupied 19.7% 22.5% 23.1% 2020 Housing Units 331 13,919 37,795 % Owner Occupied 74.9% 71.8% 71.2% % Renter Occupied 19.3% 22.4% 22.2% 2025 Housing Units 349 14,804 40,269 % Owner Occupied 74.8% 72.1% 71.5% % Renter Occupied 18.9% 21.7% 21.3% Annual % Change (2020 - 2025)1.1% 1.2% 1.3% Income Summary 2020 Median Household Income Estimate $61,102 $56,429 $60,129 2025 Median Household Income Projection $66,193 $60,728 $66,620 Annual % Change 1.6% 1.5% 2.1% 2020 Per Capita Income Estimate $22,073 $27,135 $27,372 2025 Per Capita Income Projection $24,752 $29,899 $30,401 Annual % Change 2.3% 2.0% 2.1% Source: Site-to-Do-Business (STDB Online) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:54 Menifee Mayor and City Council January 20,2021 Page 413 of 828 VACANT INDUSTRIAL LAND CITY AND NEIGHBORHOOD ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Within a three-mile radius, the median household income is $56,429. Looking ahead, annual household income growth is projected at 1.5% per year. The average income figures suggest that the inhabitants are within the lower to middle income brackets. Nuisances & External Obsolescence Neighborhood properties have adequate levels of maintenance. No adverse or unfavorable factors were observed. Neighborhood Life Cycle Most neighborhoods are classified as being in four stages: growth, stability, decline, and renewal. Overall, the subject neighborhood is in the growth stage of its life cycle but has been impacted by the current Covid pandemic. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:55 Menifee Mayor and City Council January 20,2021 Page 414 of 828 VACANT INDUSTRIAL LAND SITE DESCRIPTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Site Description The subject site is located on the west side of Murrieta Road extending through to Geary Street. The characteristics of the site are summarized as follows: Site Characteristics Gross Land Area: 25.02 Acres or 1,089,871 SF Usable Land Area: 25.02 Acres or 1,089,871 SF Usable Land %: 100.0% Shape: L-shaped Average Depth: 990.00 feet Topography: Level Drainage: It is assumed to be adequate Grade: At street grade Utilities: All avail Off-Site Improvements: Street lights Interior or Corner: Through Lot Signalized Intersection: No: - Traffic signal nearby that enhances access to the site Excess or Surplus Land: None Street Frontage / Access Frontage Road Primary Secondary Street Name: Murrieta Road Geary Street Street Type: Industrial Industrial Frontage (Linear Ft.): 655.00 1,260.00 Number of Curb Cuts: 0 0 Traffic Count (Cars/Day): N/A N/A Additional Access Alley Access: No Flood Zone Data Flood Map Panel/Number: 06065C2055H Flood Map Date: 08-18-2014 Portion in Flood Hazard Area: 0.00% Flood Zone: X The subject is out of the Special Flood Hazard Area (SFHA). Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:56 Menifee Mayor and City Council January 20,2021 Page 415 of 828 VACANT INDUSTRIAL LAND SITE DESCRIPTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Other Site Conditions Soil Type: We were not provided with a soils report to review. This appraisal assumes the soils are adequate and have sufficient load-bearing capacity to support the highest and best use of the subject site. Environmental Issues: An environmental site assessment report was not furnished for our review. An inspection of the property did not reveal any visible or factual evidence of apparent environmental impairment to the site. The appraisers are not considered experts in hazardous materials. The client is advised to obtain an environmental report if further investigation is desired. In addition, a drive-by inspection of the immediate vicinity surrounding the subject did not reveal any uses or hazards that would be expected to pose an apparent risk to the site or would restrict its use. Easements/Encroachments: We were not provided with a Preliminary Title Report or a Survey of the subject site. A premise of this appraisal is that no adverse title conditions exist that would affect the marketability of this property for its existing use. Earthquake Zone: According to the State of California Department of Conservation, the subject is not located within an Alquist-Priolo Special Studies Zone. Adjacent Land Uses North: Single-family homes South: Single-family homes and vacant land East: Vacant land West: Vacant land Site Ratings Access: Average Visibility: Average Zoning Designation Zoning Jurisdiction: City of Menifee Zoning Classification: EDC-NG, Economic Development Corridor - Northern Gateway General Plan Designation: Light to medium industrial uses, no heavy manufacturing. Permitted Uses: Distribution warehouses, light manufacturing, some retail uses. Zoning Comments: The subject is currently in the process of going through the entitlement process for a residential subdivision. The site was originally four lots. The zoning is meant for smaller light industrial uses and the larger industrial complex would be a conditional use under the EDC-NG zoning. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:57 Menifee Mayor and City Council January 20,2021 Page 416 of 828 VACANT INDUSTRIAL LAND SITE DESCRIPTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Analysis/Comments on Site The subject is an L shaped lot with visibility and access to Murrieta Road, which is a large throughfare for the area. It has frontage along Murrieta and Geary Street. The site is level, at grade with all utilities onsite. There is vacant land and smaller industrial/residential uses nearby. Overall, the site would be larger than most other industrial sites in the area but does have good access and visibility to Murrieta Road and is close to an offramp. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:58 Menifee Mayor and City Council January 20,2021 Page 417 of 828 VACANT INDUSTRIAL LAND SITE DESCRIPTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire TAX/PLAT MAP Item Title: 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLCItem Page Number: 59Menifee Mayor and City Council                                                                               January 20, 2021Page 418 of 828 VACANT INDUSTRIAL LAND SITE DESCRIPTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire TAX/PLAT MAP Item Title: 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLCItem Page Number: 60Menifee Mayor and City Council                                                                               January 20, 2021Page 419 of 828 VACANT INDUSTRIAL LAND SITE DESCRIPTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire FLOOD MAP Item Title: 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLCItem Page Number: 61Menifee Mayor and City Council                                                                               January 20, 2021Page 420 of 828 VACANT INDUSTRIAL LAND SITE DESCRIPTION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire ZONING MAP Item Title: 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLCItem Page Number: 62Menifee Mayor and City Council                                                                               January 20, 2021Page 421 of 828 VACANT INDUSTRIAL LAND SUBJECT PHOTOGRAPHS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Subject Photographs Looking West from Murrieta Intersection of Floyd and Murrieta. Additional photos are included in the Addenda Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:63 Menifee Mayor and City Council January 20,2021 Page 422 of 828 VACANT INDUSTRIAL LAND ASSESSMENT AND TAX DATA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Assessment and Tax Data Assessment Methodology The current method of taxation of real property in California is mandated by Proposition 13, under which real estate taxes were reduced to one percent of the property's full market value as of the 1975/76 fiscal year, plus any voter-approved bond indebtedness. The Assessor's assessment of market value is limited to a maximum of two percent annual increase, unless the property is transferred or there is substantial new construction. In either of these two events, the property is re-appraised to current market value, usually as evidenced by the sales price or the construction cost. The below taxes are based on the four individual industrial lots. There are no current taxes available for the seventy eight lots and any taxes paid for the 78 lots are not germane to this appraisal. Assessed Values and Property Taxes The subject’s assessed values, applicable tax rates and total taxes, including direct assessments, are shown in the following table: Conclusions Considering Proposition 13, we have estimated the assessor’s appraised value may increase by 2% per year, compounded, as allowed by law. Additionally, the premise of fair market value assumes a consummated sale as of the effective date of value, which would trigger a new assessment by the Riverside County Assessor’s office, as provided by law. The subject is appraised free and clear of liens and encumbrances that may include past or delinquent taxes. Please refer to item 2 in the General Assumptions and Limiting Conditions. Tax Schedule Parcel Assessor's Appraised Assessment Assessor's Appraised Assessment Assessor's Total Assessed Tax Millage Effective Direct Tax Tax Year Number Value - Land Ratio Value - Imp. Ratio Appraised Value Value Rate Rate Tax Rate Assessments Expense 1 2018 330-210-003 $546,720 100.00% $0 100.00% $546,720 $546,720 $1.069130 per $100 1.069130% $257 $6,102 2 2018 330-210-004 $93,840 100.00% $0 100.00% $93,840 $93,840 $1.069130 per $100 1.069130% $44 $1,048 3 2018 330-210-005 $184,620 100.00% $0 100.00% $184,620 $184,620 $1.069130 per $100 1.069130% $87 $2,061 4 2018 330-210-008 $92,820 100.00% $0 100.00% $92,820 $92,820 $1.069130 per $100 1.069130% $44 $1,036 Total $918,000 $0 $918,000 $432 $10,247 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:64 Menifee Mayor and City Council January 20,2021 Page 423 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Market Analysis Financial markets are seeing dramatic impacts due to the novel coronavirus pandemic, and while the pandemic continues to be fought, no metric will be reliable to predict with certainty what value impacts will be. However, using trusted analytics resources we can better understand the ways in which past economic shocks have progressed which will help us better assess true risk associated with a particular CRE asset. This economic crisis is unique from others in that there have been shocks to both the supply and demand side. This worry is exacerbated by record corporate debt in place. According to the Federal Reserve, American non-financial corporate debt has risen to 49% of GDP. In 2009 it was 43%. Two- thirds of non-financial corporate bonds in the US are rated “BBB” or lower. The United States has posted a 4.8% decrease in GDP for the first quarter of 2020. China’s Q1 GDP contracted 6.8% year over year, then rebounded for a 3.2% growth in Q2, year over year. An annualized drop of 32.9% was reported at the end of July, with a quarter contraction of 9.5% from April through June. Real GDP is expected to decline 12% from peak to trough between Q419 and Q220, and contract by 6.6% in all of 2020. Unemployment as of late July was 11% nationwide, and expected to remain in double digits through the early Fall, according to Moody’s Analytics. CRE markets have been reporting drops in transaction volumes due to travel restriction, quarantines and “stay at home” orders. Movements in the stock market and interest rates as well as stimulus Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:65 Menifee Mayor and City Council January 20,2021 Page 424 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire packages and legislation have caused many deals in progress to be put on hold while participants reconstruct return expectations and yield estimates. Moody’s recorded a 47% drop-in transaction activity by dollar volume in the first quarter. The end date of this period of volatility is impossible to foresee, but a historical picture of the relationship between volatility (as measured by deviations in the 10-Yr Treasury prices) and the transaction volume of commercial real estate from the end of 2001 to the end of 2019 may provide some insight. The preceding graph shows that transactional volume may drop anywhere from 20 to 40% during periods of extreme volatility. The National Council of Real Estate Investment Fiduciaries (NCREIF) tracks the values and returns for institutionally owned commercial real estate. NCREIF compared the recession in the early 1990’s to the financial crisis that began in 2007-08. They found a 27% decline in values across 40,000 individual office, industrial, retail, multi-family and hotel properties for the 2007-08 period. While this was slightly higher than the 25% value drop during the recession of the early 1990’s, the recovery was much quicker. The NCREIF study attributes the faster recovery in values to better data for valuation being available and a desire by investment managers to get the properties in their funds marked to market quickly. The addition of more frequent outside appraisals likely also helped. In the current crisis, we have even more data available (now nearly in real time), as well as stronger analytic models and the benefit of a financial stimulus playbook from which to act more quickly to respond to systemic shocks. The strong federal response has been well received and has kept many markets solvent. The second half of 2020 may see increased volatility again as legislators argue over additional stimulus options, eviction moratoria ends and the additional unemployment benefit from the federal government of $600 per week is no longer being sent to affected households. Impacts to values have not been consistent across sectors, asset classes and markets. Study and analysis on micro levels is critical. Moreover, the analysis of markets and properties prior to the downturn is important as is the market’s vulnerability to recession. The Brookings Institution used Moody’s Analytics to identify “most at risk” industry groups, from which it compiled a list of five Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:66 Menifee Mayor and City Council January 20,2021 Page 425 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire particularly vulnerable sectors: mining/oil and gas, transportation, employment services, travel arrangements, and leisure/hospitality. The following map illustrates areas most affected by employment in these sectors. Property types will also be asymmetrically affected. In the multi-family sector, markets that are oversupplied, or which have a history of rising vacancy or low to flat rent growth are indications of areas that may be harder hit by the new crisis. Markets with volatility in rent growth are still vulnerable, even if vacancy was stable in the past 12 months. For office and retail properties, Moody’s predicts a protracted slump. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:67 Menifee Mayor and City Council January 20,2021 Page 426 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Moody’s expects office vacancy to peak at 21% in 2021 and remain close to 20% through 2024. This is an historic high, but long-term leases in place will help the sector overall weather some of the short- term shock. Systemic change to office space use remains a variable. Remote working is likely to reduce overall footprints, and workers used to save commuting times may press for smaller suburban office locations over large unified spaces in city centers. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:68 Menifee Mayor and City Council January 20,2021 Page 427 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Retail, according to the models, will top out in 2021 at just under 15% vacancy and gradually improve to 11.5% by 2024. Net absorption drops precipitously in 2020 and 2021 in both sectors and begins to recover after that. It’s important to note that rents and vacancies in both office and retail are expected to track with GDP performance, so the model is sensitive to future changes in that metric. Retail must also be considered in its specific iteration. Grocery stores and pharmacies have not seen impacts to their business, nor is one expected. Tenants concentrated in malls, however, are experiencing high bankruptcies. This sector especially necessitates more granular identification when looking for trends. Location also plays a role in performance as surges in infection have and may still cause additional shutdowns to retailers such as bars, restaurants, theaters and gyms creating a longer recovery arc for the sector. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:69 Menifee Mayor and City Council January 20,2021 Page 428 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Industrial follows the same pattern. Absorption drops in the next 24 months, through 2021, vacancy peaks at just over 14%, and improves to 10% by 2024. This trend higher than in 2019, but is less severe than impacts to retail and office. Multi-family has yet to see a significant impact to vacancies and rents. It is unclear to what extent this will continue through the year. As we enter into the period where the CARES Act’s eviction moratorium has ended (as of July 24) and 12 states have no protections in place for renters outside of the federal programs, we may see vacancies begin to rise. As of July 20, the National Multifamily Housing Council (NMHC) reported that 91.3% of apartment households paid full or partial rent. The end of federal unemployment benefits may impact this number in Q3. Vacancies are expected to peak at 7% in 2021, and asking and effective rents to drop 4 to 5% between 2020 and 2021. For comparison, this is a less dramatic impact than what was seen in 2008 and 2009. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:70 Menifee Mayor and City Council January 20,2021 Page 429 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Secondary property types are also being impacted by the pandemic. Occupancy for self-storage properties dropped in the first quarter by 40 basis points and rents fell by 3.9% year over year for 10 by 10-foot non-climate-controlled units. Student housing is in flux as schools are making final decisions about whether to offer in person instruction for the fall and possibly spring semesters. Moody’s is predicting a 220-basis point increase for rent-by-the-bed properties and 100 basis point vacancy increases for rent-by-the-unit. Rents will drop 4 to 6% over the fall. Senior housing has seen a dramatic impact. This is not surprising given the disproportional impact of the virus on elderly populations. Vacancies in the sector rose to 10.1% in the first quarter of 2020. Rates for Q2 are not available at this time but are expected to continue to rise. The property type will have substantial challenges both creating safe environments for residents and staff and then convincing residents and their families of that safety. Affordable housing, on the other hand, does not appear to have been impacted by the downturn. Vacancies in the sector are only at 2.4% and asking rents increased by 0.6% in Q1. As families continue to feel the employment strain the demand is unlikely to slacken, however, investors are watching closely as there is talk of issuing rent waivers in certain locales and/or extending eviction moratoria. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:71 Menifee Mayor and City Council January 20,2021 Page 430 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Source: STR. 2020 © CoStar Realty Information, Inc. Hospitality is second only to retail in its severe impact from the pandemic. A July 24, 2020 release from STR reports a GOPPAR (gross operating profit per available room) down 105.4% year-over-year in June. This was a slight improvement over April and May, down -116.9% and -110.1%, respectively. Occupancy is predictably down 42.5% as well, to 42.5% across all room types. ADR for June is at $92.15, down -31.5.%. Across all asset classes, investors are also watching the interest rate landscape closely. Rates are expected to remain low for the foreseeable future. Conversely, cap rates are expected to rise over the next couple of years before trending back down in 2023 and 2024. Retail rates are the highest, expected to peak near 10% in 2023, and multifamily is steadier, staying below 7% for the duration of the period forecasted. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:72 Menifee Mayor and City Council January 20,2021 Page 431 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire To complement the Moody’s predictive modeling, NCREIF published a breakdown of impact on market value by property sector, tracking from 1978 to the end of Q4 2019. As the graph illustrates, multi-family saw one of the largest value drops in 2007-09, but was also the first to recover, and that recovery was the largest and fastest. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:73 Menifee Mayor and City Council January 20,2021 Page 432 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Industrial followed the curve, even surging in recent years. Hotels never returned to their pre-recession peak, even as the economy as a whole was growing. Office and retail both recovered around seven years after the low point. Office however, had the second most dramatic drop in value and was last to recover (after hotels). This is likely to repeat in the recovery from this crisis as firms may discover that their employees and clients can be served by work-from- home models, allowing them to consolidate square footage. Market Conditions Introduction The subject property is located in the South Riverside Industrial submarket within the Inland Empire industrial market. The following is based on information contained in CoStar Group, Inc.’s Industrial Market Report. Inland Empire Industrial Market The Inland Empire's industrial market has grown in tandem with the expansion of the nation's e- commerce industry and the nation's supply-chain infrastructure. The stifling pace of construction places the metro second in terms of deliveries over the past 12 months among the 390 metros in the U.S. tracked by CoStar, trailing only Dallas-Fort Worth. New tenants can often only find new industrial buildings to lease or buy, as availability in existing product is rare. While roughly 70% of the 22.0 million SF currently under construction is available for lease, most deliveries in the past two years have either preleased before completion or leased within months of completion. However, with severe job losses mounting in 20Q2 as a result of the coronavirus pandemic, vacancies are projected to rise from 4.4% to 5.3% by the end of the year while rents sharply decline in CoStar's Base Case scenario. The combination of prominent tenants that could provide steady cash flow, such as Amazon, Walmart, Target, and General Pacific, and proximity to the Southern California megaregional economy has been attracting institutional investors from across the world in recent years. New construction has also helped produce additional investment opportunities. However, sales activity in 2020 is off its record pace set in 2019, when sales volume reached $5.9 billion. Investors are likely weighing the impact from the coronavirus pandemic on industrial properties. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:74 Menifee Mayor and City Council January 20,2021 Page 433 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Leasing & Vacancy A handful of large leases executed recently demonstrates the strong demand that the metro has enjoyed of late. The tenant base continues to grow across industries, providing diversification to the market, although most companies that are growing in the Inland Empire are expanding their warehousing and distribution capacity. Among the largest leases recently executed, LG Electronics signed on to take the 830,750-SF Cajon Distribution Center in San Bernardino in February 2020. Kimberly-Clark moved into the 1.2-million-SF Ontario Ranch Logistics Center in March 2020. Also, Cardinal Health moved into the 1 million SF Deneau Sycamore Canyon industrial park in Riverside in April 2020. The metro has one of the lowest vacancy rates among markets with more than 300 million SF, partly because a few large tenants provide stability. Amazon currently occupies 16 industrial properties across the metro with a total of 15 million SF, including 2.6 million SF in a four-story distribution building in Beaumont that delivered in 2019. The company recently announced plans to hire 100,000 distribution workers throughout the nation to support the surge in online shopping caused by the growing coronavirus. In the Airport Area Submarket, California Steel Industries operates out of a 4-million SF plant that was built for Kaiser Steel in 1942; a steel and steel-products manufacturing industry cluster has formed around the plant. General Pacific and Target also occupy 1.5 million SF each in the Airport Area Submarket, as does Big Lots although the company is in the process of moving to a new facility in Apple Valley. While leasing has yielded high levels of absorption in recent years and long-term tenants provide stability in the metro, the market's fundamentals will be tested in the second half of the year when a large wave of speculative construction delivers. The coronavirus pandemic will bring additional uncertainty to the market, as demand could slow in tandem with national consumption levels or demand could increase if consumers further shift towards online shopping for goods and further away from traditional brick and mortar stores. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:75 Menifee Mayor and City Council January 20,2021 Page 434 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Rent The metro's long-run of robust rents gains have slowed to 4.6% over the past four quarters, compared to 7.5% a year ago and 8.9% two years ago. Yet the average rent in the Inland Empire is about one- third the average rents in L.A. and Orange County. The market's average rent of $9.00/SF appear near the National Index of $8.80/SF, but local inventory is highly skewed towards large logistics buildings where rents tend to be lower as a result of economies of scale. For an apples-to-apples comparison, rents in the Inland Empire in logistics buildings with at least 200,000 SF are about 35% higher than they are in the nation. Submarkets located outside of the metro's core demonstrate some resistance towards rent escalation. These include Coachella Valley and Twentynine Palms, where rent growth over the past four quarters trails the metro. Meanwhile, Moreno Valley/Perris is one of the fastest growing submarkets and rents have grown faster than the metro average. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:76 Menifee Mayor and City Council January 20,2021 Page 435 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Construction Industrial deliveries were growing at an elevated pace, but construction starts have recently slowed. The growth in online shopping and an increased effort to improve efficiency at the last mile of distribution have helped make the metro a popular location for industrial tenants and developers. About 25 million SF of industrial space delivered annually from 2017 to 2019, and while the pace is slowing in 2020, over 20 million SF will probably deliver by the end of the year. Most construction underway is concentrated in three submarkets: Airport Area; Moreno Valley/Perris; and San Bernardino. Of the 22.0 million SF under construction, just over 70% is available for lease, compared to 40% in 19Q1. One of the largest spec developments underway is the nine-building, 1.7 million SF Colony Commerce Center located in the southern edge of the Airport Area Submarket. The entire industrial park, which will have buildings that range in size from 41,200 SF to 1 million SF, is available for lease. Despite this single project, availabilities in the under-construction segment are skewed towards small and mid-sized buildings. Most of the largest buildings under construction are preleased, including Building 2 of the Ontario Ranch Logistics Center (1.2 million SF, Uline), Building 1 of the West Ontario Logistics Center (1.2 million SF, VF Corporation), and the Duke Perris Logistics Center (1 million SF, Amazon). One notable recent delivery is the four-story Crossroads Logistics Center in Beaumont. The development is located in the Beaumont/Hemet Submarket, where a lack of proximity to Los Angeles, Orange County, and San Diego has historically made it a less desirable place for industrial development. Amazon leased the entire 2.56 million SF building. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:77 Menifee Mayor and City Council January 20,2021 Page 436 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Sales A large footprint of nationally recognized tenants and an abundance of new industrial product drives strong capital flows to the Inland Empire. While it may be too soon to fully understand the impact that the coronavirus pandemic is having on investors, early indications suggest that sales activity has slowed since mid-March. In contrast, a flurry of private equity, primarily through entity sales and portfolio trades, flooded the market in 2019, with sales volume growing by more than 50% from $3.8 billion in 2018 to $5.9 billion in 2019. In contrast, annual sales volume ranged from $1 billion to $2 billion from 2003 to 2014. Blackstone increased its stake in the local market more than any other company over the past year. Through the acquisition of portfolios from Global Logistics Properties and Space Center, Blackstone purchased 15 million SF of industrial space in 2019, accounting for about 2.5% of total market inventory, valued at about $2 billion. Similarly, Prologis acquired Liberty Property Trust and Industrial Property Trust in early 2020 along with their 6.2 million SF of Inland Empire industrial space. The Inland Empire has become a global market for industrial property investments in recent years, but foreign-origin buyers have largely pulled back since 2019. Prior to this past year, foreign-origin buyers were often paying top-dollar for industrial assets, one reason why price appreciation by SF topped 10% on a year-over-year basis from 2014 to 2018 based on CoStar's Market Price. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:78 Menifee Mayor and City Council January 20,2021 Page 437 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire The bulk of activity since the start of 2019 is driven by domestic investors. And unlike Los Angeles and Orange County, where industrial properties can trade for their value-add potential or sometimes even complete redevelopment purposes, most large industrial buildings trade for immediate cash flow. For example, New York based BlackRock acquired a new 890,000-SF warehouse in Riverside soon after delivery in November 2019 for $117.3 million ($132/SF) at a 4.2% cap rate. The asset is leased to Burlington Coat Factory. Similarly, Northwestern Mutual Life Insurance acquired the two building 1.5 million-SF Sierra Pacific Center for $213.5 million ($142/SF) at a 3.7% cap rate in April 2019. The two buildings delivered in 2015 and 2016 and are leased to FedEx and LG Electronics, respectively. The repeat sale of a 1 million-SF warehouse in Riverside provides a good example of how prices can rise through leasing. Deneau Properties acquired Building 1 in the Sycamore Canyon Business Park for $94.2 million ($93/SF) in June 2019, although the terms of the trade were agreed upon before construction broke ground in mid-2018. After leasing to Cardinal Health, Dedeaux sold the warehouse to TA Realty for $129.1 million (127/SF) at a 4% cap rate, a gain of 37% over their short holding period. One unique trade that does hint at a redevelopment play is a Bridge Development Partners acquisition in October 2019 of a 1.4 million-SF, 1984-vintage industrial building for $191.1 million ($134/SF). The building is located in Rancho Cucamonga and sits on a 70-acre parcel on some of the most expensive industrial-zoned land in the Inland Empire. Big Lots, the seller, will leaseback the building for a short- term while they complete their move to Apple Valley. Inland Empire industrial assets are priced above the national average and on an income-capitalization basis they are some of the most expensive properties in the nation. CoStar's same-store, property- level cap rate series measures 4.8%, compared to 6.6% in the nation. Yet most sales, as measured by transaction counts, involve 1- & 2-Star properties, where cap rates are about 200 basis points higher. Sales of 1- & 2-Star properties accounted for about 15% of total transaction volume in 2019, but have an overwhelming weight on the transaction cap rate, which is 5.4% for all sales over the past 12 months. Same-store, property level price appreciation slowed to 6.7% year-over-year in 20Q1, but prices are projected to decline by more than 9% over the next four quarters in CoStar's Base Case Scenerio, which accounts for severe job losses in 20Q2 and a return to 20Q1 employment levels in six quarters. Buyers will likely seek a discount to account for the additional risks in the current economic environment, but sales activity could be reduced to sellers who need to divest of their assets, such as those that reach the end of a predetermined hold period or to meet their capital stack requirements. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:79 Menifee Mayor and City Council January 20,2021 Page 438 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Economy The Inland Empire appears less susceptible to the pandemic-driven economic recession. Health care establishments and logistics firms comprise a large portion of the economy, and both sectors are expected to remain in demand in 2020, both locally and across the nation. While tourism is prevalent in portions of the metro—such as Palm Springs, Big Bear, and Temecula—the region does not wholly rely on visitor spending. Prior to the pandemic, jobs were growing by over 2% per year, twice the rate of population growth. The unemployment rate reached 4.1% in 20Q1 on a seasonally adjusted basis, near its historic low. In Oxford Economics' baseline scenario, 245,000 jobs are expected to be lost in 20Q2, a 16% decline quarter over quarter. As some of these job losses could be temporary, the projections call for 150,000 jobs to return before the end of the year, while the rest return within six quarters. While economy can recover rapidly over the short-term, there are a few impediments to more pronounced long-term growth, such as a slower growth in the region's population and limited high- wage job opportunities. The Inland Empire's population grew by 0.7% in 2019—per the state's department of finance as of January 1st, and population growth has averaged about 1% similar growth since 2010. The metro has historically attracted migration from Los Angeles, Orange County, and San Diego, and population growth rates averaged 3% in the 1980s, 1990s, and early 2000s. The structural change in population growth from decades ago to now has contributed to less development across most property types (outside of industrial), and the economy is no longer structured around growth-related sectors (i.e., there is a smaller proportion of construction and real estate workers and a larger proportion of health care workers). Inland Empire's relatively inexpensive land, proximity to the twin ports in L.A., and proximity to a massive consumer base throughout Southern California have made it the premier location for logistics Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:80 Menifee Mayor and City Council January 20,2021 Page 439 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire firms to expand. As a byproduct of the exponential growth in the logistics sector over the past 20 years, businesses have been steadily expanding. The sector's growth, however, also comes with the cost of added traffic congestion on freeways and major roads, as with that growth comes an increased amount of truck drivers. There are limited opportunities for high-wage sector workers, and wages here are growing at a slower rate than the nation. There are no Fortune 500 companies in the metro, and few nationally recognized corporations are headquartered in the two-county region. Affordable housing has historically been a major driver for population, as the Inland Empire is a bedroom community that attracts residents from its pricier neighbors in Los Angeles, Orange County, and San Diego. The average single-family house in the Inland Empire costs roughly $400,000. Housing development in the past decade has paled in comparison to the amount of housing developed in the 2000s. However, several master-planned communities and market-rate apartments have been built in South Riverside County, Greater Ontario/Rancho Cucamonga, and Riverside. South Riverside Industrial Submarket The South Riverside Submarket is an attractive infill market because of its proximity to affluent consumers in Orange County and San Diego. Most buildings are small or mid-sized, while the larger facilities are concentrated in the neighboring Moreno Valley/Perris Submarket. Vacancies have crept higher since bottoming out at 1.9% in 18Q3. A 51,750-SF distribution building delivered in early 2020 that is 20% available as of August. Also, several spec developments delivered in late 2018 and early 2019, but most of that new space has been leased or purchased for owner- occupancy. Instead, older space has become available—the vacancy rate for buildings built before 1990 currently stands at about 5.5%. Rents have endured strong growth for much of this cycle, but growth has been decelerating for several quarters. Investors have been active, even as the pandemic induced significant job losses and business closures. Sales volume broke records in 2018 and 2019 and is on pace to surpass those levels. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:81 Menifee Mayor and City Council January 20,2021 Page 440 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Leasing & Vacancy Vacancies expanded in 2019 but have been steady in 2020 at around 3.6%. Older spaces become available as there has been no large additions this year. A wave of speculative development built in late 2018 and early 2019 has been leased or sold. South Riverside attracts a wide array of types of tenants. Walmart accounts for one of the largest leases of 2019, when they signed on for 102,300 SF in Temecula. Before the year closed, Plastic Industries leased 158,700 SF in Corona. Abbot Labs, meanwhile, leased 82,300 SF in Temecula earlier in 2019. Tenants in the submarket are primarily composed of businesses that serve local economies. However, access to Orange County and San Diego serves logistics operations well. Rent Rent growth in the submarket closely mirrors the metro's, with impressive gains in recent years. Average rent in South Riverside grew by 7.6% on average over the past five years, including 3.6% over the past four quarters. The strongest gains in rents are coming to 4- & 5-Star buildings. Average rents are about 22% above the metro average due to proximity to affluent households within the submarket in Orange and San Diego Counties. Rents are projected to decline in CoStar's Base Case scenario, as recent business closures coincide with drastic job losses across the metro, leading to lower demand for industrial properties. However, rents recover in five to six quarters. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:82 Menifee Mayor and City Council January 20,2021 Page 441 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Construction Industrial development continues to expand in the Inland Empire, but South Riverside has had only a few small and mid-sized deliveries this cycle. Instead, the larger warehouses being built are in the neighboring Moreno Valley/Perris submarket, where land values are far less expensive. One of the newest developments in the submarket is the French Valley Airport Center in Murrieta. The industrial master-planned development has 26-unit with properties ranging from 4,000 SF to 7,000 SF, primarily for sale. The properties delivered in 2019. Another large development is the Fairway Business Park Phase II in Lake Elsinore, which also delivered in 2019. This development has six properties, ranging from 8,000 SF to 16,000 SF. The latest development is the 51,700-SF Remington Distribution Center, which is 80% leased as of August 2020. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:83 Menifee Mayor and City Council January 20,2021 Page 442 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Sales Most sales in South Riverside tend to involve properties valued at under $5 million and the market price is $180. While sales activity started to slow across the metro in mid-March, South Riverside has continued to draw attention from private investors. Sales volume totals $106 million this year, compared to a record-breaking $179 million in 2019. One recent outsized trade involves an institutional buyer. In April 2020, AEW Capital Management acquired a 228,900-SF warehouse in Temecula that was leased to Abbot Vascular and Interior Specialists at the time of sale for $29 million ($127/SF). Abbot Vascular recently signed a five-year renewal on their lease while Interior Specialists' lease was up in October 2020. The market cap rate in the submarket is 5.1%, but many properties trade 100-200 basis points higher. For example, in May 2020, a private investor acquired a fully leased, 64,700-SF food processing building in Temecula at a 6% cap rate. Stos Partners, the seller, acquired the asset in April 2019 and estimated that it would invest $500,000 to reposition the 1985-vintage building. Prices are projected to decline through 21Q1 in CoStar's Base Case scenario as recent job losses have created uncertainty in the economic recovery. In that scenario, price appreciation averages 2.9% over the next five years, compared to the 12% annual gains over the past five years. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:84 Menifee Mayor and City Council January 20,2021 Page 443 of 828 VACANT INDUSTRIAL LAND MARKET ANALYSIS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Industrial Land Market As land generally follows the above improved analysis, the land market has been affected by the current Covid pandemic. Land prices have relatively been stable for the last year and most construction was stopped in the first and second quarter of 2020. According to market participants, construction is resuming, and deals are being signed. Prices remain as they were prior to the pandemic at 2019 levels but as demand was high before the pandemic, most participants expect that demand will continue to rachet up in the third and fourth quarter of this year. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:85 Menifee Mayor and City Council January 20,2021 Page 444 of 828 VACANT INDUSTRIAL LAND HIGHEST AND BEST USE © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Highest and Best Use-hypothetical as if one parcel The Highest and Best Use of a property is the use that is legally permissible, physically possible, and financially feasible which results in the highest value. An opinion of the highest and best use results from consideration of the criteria noted above under the market conditions or likely conditions as of the effective date of value. Determination of highest and best use results from the judgment and analytical skills of the appraiser. It represents an opinion, not a fact. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. Analysis of Highest and Best Use As Though Vacant The primary determinants of the highest and best use of the property As Though Vacant are the issues of (1) Legal permissibility, (2) Physical possibility, (3) Financial feasibility, and (4) Maximum productivity. Legally Permissible The subject site is zoned EDC-NG, Economic Development Corridor - Northern Gateway which controls the general nature of permissible uses but is appropriate for the location and physical elements of the subject property, providing for a consistency of use with the general neighborhood. The location of the subject property is appropriate for the uses allowed, as noted previously, and a change in zoning is unlikely. There are no known easements, encroachments, covenants or other use restrictions that would unduly limit or impede development. Physically Possible The physical attributes allow for a number of potential uses. Elements such as size, shape, availability of utilities, known hazards (flood, environmental, etc.), and other potential influences are described in the Site Description and have been considered. There are no items of a physical nature which would adversely impact development with the legal permitted uses. Financially Feasible The probable use of the site for industrial development conforms to the pattern of land use in the market area. A review of published yield, rental and occupancy rates suggest that there is a balanced supply and demand is sufficient to support construction costs and ensure timely absorption of additional inventory in this market. Therefore, near-term speculative development of the subject site is financially feasible. Maximally Productive Among the financially feasible uses, the use that results in the highest value (the maximally productive use) is the highest and best use. Considering these factors, the maximally productive use as though vacant is for an industrial use. Conclusion of Highest and Best Use As Though Vacant The conclusion of the highest and best use As Though Vacant is for an industrial use. Most Probable Buyer As of the date of value, the most probable buyer of the subject property is an owner user/developer. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:86 Menifee Mayor and City Council January 20,2021 Page 445 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 50 Land Valuation Methodology Site Value is most often estimated using the sales comparison approach. This approach develops an indication of market value by analyzing closed sales, listings, or pending sales of properties similar to the subject, focusing on the difference between the subject and the comparables using all appropriate elements of comparison. This approach is based on the principles of supply and demand, balance, externalities, and substitution, or the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. The process of developing the sales comparison approach consists of the following analyses: (1) researching and verifying transactional data, (2) selecting relevant units of comparison, (3) analyzing and adjusting the comparable sales for differences in various elements of comparison, and (4) reconciling the adjusted sales into a value indication for the subject site. Unit of Comparison The unit of comparison depends on land use economics and how buyers and sellers use the property. The unit of comparison in this analysis is per usable square foot. Elements of Comparison Elements of comparison are the characteristics or attributes of properties and transactions that cause the prices of real estate to vary. The primary elements of comparison considered in sales comparison analysis are as follows: (1) property rights conveyed, (2) financing terms, (3) conditions of sale, (4) expenditures made immediately after purchase, (5) market conditions, (6) location and (7) physical characteristics. Comparable Sales Data To obtain and verify comparable sales of vacant land properties, we conducted a search of public records, field surveys, interviews with knowledgeable real estate professionals in the area, and a review of our internal database. We included five sales in our analysis, as these sales were judged to be the most comparable to develop an indication of market value for the subject property. Larger sales of industrial properties are not prevalent and we had to expand our search to neighboring Perris, north of the subject. The following is a table summarizing each sale comparable and a map illustrating the location of each in relation to the subject. Details of each comparable follow the location map. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:87 Menifee Mayor and City Council January 20,2021 Page 446 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 51 Land Sales SummaryComp. DateSales Price PerNo. of Sale Location Zoning Actual Sq. Ft.1 May-20 NEC Redlands Ave & Morgan St Perris, California BPO $1,830,000 $2.552 January-20 5150 Walnut Ave Perris, California LI $2,200,000 $5.283 August-19 Natwar Ln @ Nandina Perris, California LI $9,617,500 $9.504 April-19 1330 Nandina Ave Perris, California RR $3,920,000 $4.565 December-18 Decker Rd Perris, California BP $12,070,000 $4.87Item Title: 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLCItem Page Number: 88Menifee Mayor and City Council                                                                               January 20, 2021Page 447 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 52 Land Sales SummarySale # 1 Sale # 2 Sale # 3 Sale # 4 Sale # 5Sale ID 1498986 1498988 1498981 1499005 1498958Property Name NEC Redlands Ave & Morgan St5150 Walnut Ave Natwar Ln @ Nandina1330 Nandina Ave Decker RdSale Status Closed Closed Closed Closed ClosedLocation NEC Redlands Ave & Morgan St5150 Walnut Ave Natwar Ln @ Nandina1330 Nandina Ave Decker RdPerris, California Perris, California Perris, California Perris, California Perris, CaliforniaTax ID 303-150-006 & 012 305-030-041 & 042 295-300-009 et al. 294-180-017 314-020-010 et alSales DataDate of Sale 5/11/2020 1/3/2020 8/13/2019 4/19/2019 12/17/2018Sales Price $1,830,000 $2,200,000 $9,617,500 $3,920,000 $12,070,000 Price/Usable Square Foot $2.55 $5.28 $9.50 $4.56 $4.87Grantor GM Gabrych Family Limited PartnershipRider Street LLC Zimmer R & N Trust Lewis Street Properties LPKnox Logistics & Iv LlcGrantee Kwangwon USA, Inc. Dp Walnut LLC FR Natwar LLC Ipt Perris Dc Llc C-r Cousins Inc, Rech Jack R, Parker 215 LlcRecording Number 0199606 0002718 0306737 0133870 0488797, 0487984, 0487978Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee SimpleFee SimpleFinancing CashCashCashCashCashConditions of Sale None None None None AssemblagePhysical CharacteristicsUsable Land Area (Acres) 16.47 9.56001 23.23999 19.72 56.93001Gross Land Area (Acres) 16.470 9.560 23.240 19.720 56.930Zoning BPO LI LI RR BPTopography Level Level Level Sloping LevelShape Irregular Rectangular L-shaped Irregular RectangularUtilities All avail All avail All avail All avail All availCorner Exposure Interior Interior Interior Interior CornerAccess/Visibility Average/Average Average/Average Average/Average Average/Average Average/AverageItem Title: 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLCItem Page Number: 89Menifee Mayor and City Council                                                                               January 20, 2021Page 448 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 53 COMPARABLE SALES MAP Item Title: 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLCItem Page Number: 90Menifee Mayor and City Council                                                                               January 20, 2021Page 449 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 54 LAND COMPARABLE 1 Property Identification Property/Sale ID 11088911/1498986 Property Type Industrial Property Name NEC Redlands Ave & Morgan St Address NEC Redlands Ave & Morgan St City, State Zip Perris, California 92571 County Riverside MSA Riverside-San Bernardino Latitude/Longitude 33.839760/-117.213783 Tax ID 303-150-006 & 012 Transaction Data Sale Date 05-11-2020 Sale Status Closed Grantor GM Gabrych Family Limited Partnership Grantee Kwangwon USA, Inc. Property Rights Fee Simple Financing Cash Conditions of Sale None Recording Number 0199606 Sale Price $1,830,000 Adjusted Price $1,830,000 Property Description Gross Acres 16.47 Gross SF 717,433 Usable Acres 16.47 Usable SF 717,433 Front Feet 656.00 No. of Lots 2 Street Access Average Visibility Average Corner/Interior Interior Shape Irregular Topography Level Utilities All avail Zoning Code BPO Indicators Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:91 Menifee Mayor and City Council January 20,2021 Page 450 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 55 $/Gross Acre $111,111 $/Gross SF $2.55 $/Usable Acre $111,111 $/Usable SF $2.55 Verification Confirmed With CoStar, public records & broker Confirmed By Randy Walker Confirmation Date 09-21-2020 Remarks X The property consists of two parcels of BPO (Business/Professional Office) zoned land totaling 16.47 acres that sold for approximately $111,111 per acre. The property sold unentitled and the buyer is in the process of developing an industrial building. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:92 Menifee Mayor and City Council January 20,2021 Page 451 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 56 LAND COMPARABLE 2 Property Identification Property/Sale ID 11088915/1498988 Property Type Industrial Property Name 5150 Walnut Ave Address 5150 Walnut Ave City, State Zip Perris, California 92571 County Riverside MSA Riverside-San Bernardino Latitude/Longitude 33.827172/-117.232514 Tax ID 305-030-041 & 042 Transaction Data Sale Date 01-03-2020 Sale Status Closed Grantor Rider Street LLC Grantee Dp Walnut LLC Property Rights Fee Simple Financing Cash Conditions of Sale None Recording Number 0002718 Sale Price $2,200,000 Adjusted Price $2,200,000 Property Description Gross Acres 9.56 Gross SF 416,434 Usable Acres 9.56 Usable SF 416,434 No. of Lots 2 Street Access Average Visibility Average Corner/Interior Interior Shape Rectangular Topography Level Utilities All avail Zoning Code LI Indicators $/Gross Acre $230,125 $/Gross SF $5.28 $/Usable Acre $230,125 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:93 Menifee Mayor and City Council January 20,2021 Page 452 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 57 Verification Confirmed With CoStar, public records & broker Confirmed By Randy Walker Confirmation Date 09-21-2020 Remarks X This 9.56 acres in Perris, California was recently purchased for $2,200,000. The new owner plans to build a 205,000 square foot building that will start construction early 2021. The land is currently going through the entitlement process. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:94 Menifee Mayor and City Council January 20,2021 Page 453 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 58 LAND COMPARABLE 3 Property Identification Property/Sale ID 11088905/1498981 Property Type Industrial Property Name Natwar Ln @ Nandina Address Natwar Ln @ Nandina City, State Zip Perris, California 92570 County Riverside MSA Riverside-San Bernardino Latitude/Longitude 33.870291/-117.262282 Tax ID 295-300-009 et al. Transaction Data Sale Date 08-13-2019 Sale Status Closed Grantor Zimmer R & N Trust Grantee FR Natwar LLC Property Rights Fee Simple Financing Cash Conditions of Sale None Recording Number 0306737 Sale Price $9,617,500 Adjusted Price $9,617,500 Property Description Gross Acres 23.24 Gross SF 1,012,334 Usable Acres 23.24 Usable SF 1,012,334 No. of Lots 7 Street Access Average Visibility Average Corner/Interior Interior Shape L-shaped Topography Level Utilities All avail Zoning Code LI Indicators $/Gross Acre $413,834 $/Gross SF $9.50 $/Usable Acre $413,834 $/Usable SF $9.50 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:95 Menifee Mayor and City Council January 20,2021 Page 454 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 59 $/Lot $1,373,929 Verification Confirmed With CoStar, public records & broker Confirmed By Randy Walker Confirmation Date 09-21-2020 Remarks X This is the sale of 23 acres of land located in Perris, California near March Air Reserve Base. The land sold entitled and the buyer plans on developing and industrial warehouse. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:96 Menifee Mayor and City Council January 20,2021 Page 455 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 60 LAND COMPARABLE 4 Property Identification Property/Sale ID 11088941/1499005 Property Type Industrial Property Name 1330 Nandina Ave Address 1330 Nandina Ave City, State Zip Perris, California 92571 County Riverside MSA Riverside-San Bernardino Latitude/Longitude 33.868026/-117.255492 Tax ID 294-180-017 Transaction Data Sale Date 04-19-2019 Sale Status Closed Grantor Lewis Street Properties LP Grantee Ipt Perris Dc Llc Property Rights Fee Simple Financing Cash Conditions of Sale None Recording Number 0133870 Sale Price $3,920,000 Adjusted Price $3,920,000 Property Description Gross Acres 19.72 Gross SF 859,003 Usable Acres 19.72 Usable SF 859,003 No. of Lots 1 Street Access Average Visibility Average Corner/Interior Interior Shape Irregular Topography Sloping Utilities All avail Zoning Code RR Indicators $/Gross Acre $198,783 $/Gross SF $4.56 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:97 Menifee Mayor and City Council January 20,2021 Page 456 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 61 $/Usable Acre $198,783 Verification Confirmed With CoStar, public records & broker Confirmed By Randy Walker Confirmation Date 09-21-2020 Remarks X This land was sold with no entitlements. Black Creek Group is going through the process to develop the land. They are also going through a zone change. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:98 Menifee Mayor and City Council January 20,2021 Page 457 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 62 LAND COMPARABLE 5 Property Identification Property/Sale ID 11088870/1498958 Property Type Industrial Property Name Decker Rd Address Decker Rd City, State Zip Perris, California 92570 County Riverside MSA Riverside-San Bernardino Latitude/Longitude 33.857861/-117.271257 Tax ID 314-020-010 et al Transaction Data Sale Date 12-17-2018 Sale Status Closed Grantor Knox Logistics & Iv Llc Grantee C-r Cousins Inc, Rech Jack R, Parker 215 Llc Property Rights Fee Simple Financing Cash Conditions of Sale Assemblage Recording Number 0488797, 0487984, 0487978 Sale Price $12,070,000 Adjusted Price $12,070,000 Property Description Gross Acres 56.93 Gross SF 2,479,871 Usable Acres 56.93 Usable SF 2,479,871 No. of Lots 4 Street Access Average Rail Access No Visibility Average Corner/Interior Corner Shape Rectangular Topography Level Utilities All avail Zoning Code BP Indicators Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:99 Menifee Mayor and City Council January 20,2021 Page 458 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 63 $/Gross Acre $212,015 $/Gross SF $4.87 $/Usable Acre $212,015 Verification Confirmed With CoStar, public records & broker Confirmed By Randy Walker Confirmation Date 09-21-2020 Remarks X The total land traded is about 56.93 acres and the total price $12,070,000. The land is sloping some and irregular in shape. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:100 Menifee Mayor and City Council January 20,2021 Page 459 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 64 Land Sales Comparison Analysis When necessary, adjustments were made for differences in various elements of comparison, including property rights conveyed, financing terms, conditions of sale, expenditures made immediately after purchase, market conditions, location, and other physical characteristics. If the element in comparison is considered superior to that of the subject, we applied a negative adjustment. Conversely, a positive adjustment was applied if inferior. A summary of the elements of comparison follows. Transaction Adjustments Transaction adjustments include (1) real property rights conveyed, (2) financing terms, (3) conditions of sale and (4) expenditures made immediately after purchase. These items, which are applied prior to the market conditions and property adjustments, are discussed as follows: Real Property Rights Conveyed Real property rights conveyed influence sale prices and must be considered when analyzing a sale comparable. The appraised value and sale comparables all reflect the fee simple interest with no adjustments required. Financing Terms The transaction price of one property may differ from that of an identical property due to different financial arrangements. Sales involving financing terms that are not at or near market terms require adjustments for cash equivalency to reflect typical market terms. A cash equivalency procedure discounts the atypical mortgage terms to provide an indication of value at cash equivalent terms. All of the sale comparables involved typical market terms by which the sellers received cash or its equivalent and the buyers paid cash or tendered typical down payments and obtained conventional financing at market terms for the balance. Therefore, no adjustments for this category were required. Conditions of Sale When the conditions of sale are atypical, the result may be a price that is higher or lower than that of a normal transaction. Adjustments for conditions of sale usually reflect the motivations of either a buyer or a seller who is under duress to complete the transaction. Another more typical condition of sale involves the downward adjustment required to a comparable property’s for-sale listing price, which usually reflects the upper limit of value. No adjustments for atypical conditions or for-sale listings were warranted. Expenditures Made Immediately After Purchase A knowledgeable buyer considers expenditures required upon purchase of a property, as these costs affect the price the buyer agrees to pay. Such expenditures may include: costs to demolish and remove any portion of the improvements, costs to petition for a zoning change, and/or costs to remediate environmental contamination. The relevant figure is not the actual cost incurred, but the cost anticipated by both the buyer and seller. Unless the sales involved expenditures anticipated upon the purchase date, no adjustments to the comparable sales are required for this element of comparison. The parties to these transactions did not anticipate expenditures were required immediately after purchase; therefore, no adjustments were warranted. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:101 Menifee Mayor and City Council January 20,2021 Page 460 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 65 Market Conditions Adjustment Market conditions change over time because of inflation, deflation, fluctuations in supply and demand, or other factors. Changing market conditions may create a need for adjustment to comparable sale transactions completed during periods of dissimilar market conditions. As stated in our market analysis, participants for the most part have stated the prices have remained stable throughout 2020 and any (minor) price gains from 2019 likely have been erased due Covid. The oldest sale we have used was December of 2018 and based on our discussions with local participants, no market adjustments were used in our analysis. Property Adjustments Property adjustments are usually expressed quantitatively as percentages or dollar amounts that reflect the differences in value attributable to the various characteristics of the property. In some instances, however, qualitative adjustments are used. These adjustments are based on locational and physical characteristics and are applied after transaction and market conditions adjustments. Our reasoning for the property adjustments made to each sale comparable follows. The discussion analyzes each adjustment category deemed applicable to the subject property. Location Location adjustments may be required when the locational characteristics of a comparable property are different from those of the subject property. These include, but are not limited to, general neighborhood characteristics, freeway accessibility, street exposure, corner versus interior lot location, neighboring properties, view amenities, and other factors. The subject property is located along Murrieta Road with average access and average visibility. Sale 1 is located on a dirt road and has inferior access and visibility to the freeway. A moderate upward adjustment was required. Sale 2 has inferior access and visibility to the freeway and required a smaller upward adjustment. Sales 3 and 4 is similar to the subject and no adjustments were warranted. Sale 5 has inferior access and visibility, not on a paved street and in a more undeveloped area. This Sale required a moderate upward adjustment. Size The size adjustment addresses variance in the physical size of the comparables and that of the subject, as a larger parcel typically commands a lower price per unit than a smaller parcel. This inverse relationship is due, in part, to the principle of “economies of scale.” The subject property consists of 25.02 gross acres (1,089,871 gross square feet), and 25.02 acres (1,089,871 square feet) of useable land area. Only sales 2 and 5 vary enough from the subject to require small adjustments. Shape/Depth The subject site consists of a l-shaped-shaped tract considered similar enough to the land sales to not warrant an adjustment for this category. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:102 Menifee Mayor and City Council January 20,2021 Page 461 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 66 Utilities The subject has utilities in place or at the street. Sales 1 and 5 do not have all utilities at the street and moderate to large adjustments were required. Topography The subject and the majority of the sales are level. Sale 5 has some sloping aspects and required a moderate upward adjustment. Floodplain A property’s location within flood zone areas is typically a negative factor due to the increased costs of raising improvements up out of the floodplain, as well as additional insurance costs associated with improvements. No adjustments were required as the subject and all of the sales are in similar flood zones. Zoning The highest and best use of sale comparables should be very similar to that of the subject property. When comparables with the same zoning as the subject are lacking or scarce, parcels with slightly different zoning, but a highest and use similar to that of the subject may be used as comparables. These comparables may require an adjustment for differences in utility if the market supports such adjustment. The subject and the majority of the sales are industrial zoned. Sale 3 is going through a zone change and required a moderate upward adjustment. Entitled The subject is currently valued as-is and not entitled for industrial development. Sale 3 sold with entitlements and required a large downward adjustment. Summary of Adjustments Presented on the following page is a summary of the adjustments made to the sale comparables. As noted earlier, these quantitative adjustments were based on our market research, best judgment, and experience in the appraisal of similar properties. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:103 Menifee Mayor and City Council January 20,2021 Page 462 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 67 LAND SALES ADJUSTMENT GRID Subject Sale # 1 Sale # 2 Sale # 3 Sale # 4 Sale # 5 Sale ID 1498986 1498988 1498981 1499005 1498958 Date of Value & Sale September-20 May-20 January-20 August-19 April-19 December-18 Unadjusted Sales Price $1,830,000 $2,200,000 $9,617,500 $3,920,000 $12,070,000 Usable Square Feet 1,089,871 717,433 416,434 1,012,334 859,003 2,479,871 Unadjusted Sales Price per Usable Sq. Ft. $2.55 $5.28 $9.50 $4.56 $4.87 Transactional Adjustments Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjusted Sales Price $2.55 $5.28 $9.50 $4.56 $4.87 Financing Terms Cash to Seller CashCashCashCash Cash Adjusted Sales Price $2.55 $5.28 $9.50 $4.56 $4.87 Conditions of Sale Typical None None None None None Adjusted Sales Price $2.55 $5.28 $9.50 $4.56 $4.87 Expenditures after Sale Adjusted Sales Price $2.55 $5.28 $9.50 $4.56 $4.87 Market Conditions Adjustments Elapsed Time from Date of Value 0.36 years 0.72 years 1.11 years 1.43 years 1.76 years Market Trend Through September-20 - - - - - Analyzed Sales Price $2.55 $5.28 $9.50 $4.56 $4.870.0%0.0%0.0%0.0%0.0% Physical Adjustments Location Vacant Industrial Land NEC Redlands Ave & Morgan St 5150 Walnut Ave Natwar Ln @ Nandina 1330 Nandina Ave Decker Rd Menifee, California Perris, California Perris, California Perris, California Perris, California Perris, California Adjustment 10.0% 5.0% - - 10.0%0.0%0.0%0.0%0.0%0.0% Size 1,089,871 sf 717,433 sf 416,434 sf 1,012,334 sf 859,003 sf 2,479,871 sf Adjustment - -2.5% - - 5.0%0.0%0.0%0.0%0.0%0.0% Shape/Depth L-shaped Irregular Rectangular L-shaped Irregular Irregualr Adjustment ---- -0.0%0.0%0.0%0.0%0.0% Utilities All avail None All avail All avail All avail Electricty Only Adjustment 20.0% - - - 10.0%0.0%0.0%0.0%0.0%0.0% Topography Level Level Level Level Level Sloping Adjustment ----10.0%0.0%0.0%0.0%0.0%0.0% Floodplain XXXXXX Adjustment ---- -0.0%0.0%0.0%0.0%0.0% Zoning EDC-NG BPO LI LI RR BP Adjustment - - - 10.0% -0.0%0.0%0.0%0.0%0.0% Entitled No No No Yes No No Adjustment - - -20.0% - - Net Physical Adjustment 30.0% 2.5% -20.0% 10.0% 35.0% Adjusted Sales Price per Usable Square Foot $3.32 $5.42 $7.60 $5.02 $6.57 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:104 Menifee Mayor and City Council January 20,2021 Page 463 of 828 VACANT INDUSTRIAL LAND LAND VALUATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 68 Conclusion From the market data available, we used five land sales in competitive market areas which were adjusted based on pertinent elements of comparison. The following table summarizes the unadjusted and adjusted unit prices: The most comparable of the sales used were numbers 2, 3, and 4, as they share similar access and visibility features to the subject; however, Sale 3 sold entitled and would be at the higher end of the range. The adjusted prices for the comparable sales ranged from $5.02 to $7.60 per usable square foot, with an average of $6.01 per usable square foot and a median of $5.42 per usable square foot. Based on the adjusted prices and the most comparable sales, a unit value for the subject property is near the middle of the adjusted range, or $5.50 per usable square foot. This indicates a market value of $5,994,291 rounded to $6,000,000. Based on this analysis, the land value indication is summarized as follows: Land Sale Statistics Metric Unadjusted Analyzed Adjusted Min. Sales Price per Usable Square Foot $2.55 $2.55 $3.32 Max. Sales Price per Usable Square Foot $9.50 $9.50 $7.60 Median Sales Price per Usable Square Foot $4.87 $4.87 $5.42 Mean Sales Price per Usable Square Foot $5.35 $5.35 $5.58 Land Value Conclusion Reasonable Adjusted Comparable Range 1,089,871 square feet x $5.00 psf = $5,449,355 1,089,871 square feet x $6.00 psf = $6,539,226 Hypothetical Market Value Opinion 1,089,871 square feet x $5.50 psf =$5,994,291 Rounded $6,000,000 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:105 Menifee Mayor and City Council January 20,2021 Page 464 of 828 VACANT INDUSTRIAL LAND RECONCILIATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 69 Reconciliation Summary of Value Indications The indicated values from the approaches used and our concluded market values for the subject property are summarized in the following table. This is a land only appraisal and all weight were given to the sales approach. Our findings and conclusions are further contingent upon the following extraordinary assumptions and/or hypothetical conditions which might have affected the assignment results: Extraordinary Assumptions:  We have used the parcel size provided in the residential approved tract map in our analysis. We reserve the right to revise the appraisal if this varies significantly at a possible additional cost to the owner. Hypothetical Conditions:  The land being appraised is currently entitled for a residential subdivision with 78 lots. The client has requested that the property to be valued as one industrial lot. This requires a hypothetical condition. Exposure Time and Marketing Period Based on statistical information about days on market, escrow length, and marketing times gathered through national investor surveys, sales verification, and interviews of market participants, marketing and exposure time estimates of 12 to 18 months and 12 to 18 , respectively, are considered reasonable and appropriate for the subject property. Approach to Value As-Is Hypothetical Land Valuation $6,000,000 Component As-Is Value Type Hypothetical Market Value Property Rights Appraised Fee Simple Effective Date of Value September 21, 2020 Value Conclusion $6,000,000 $5.51 psf Value Indications Value Conclusion Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:106 Menifee Mayor and City Council January 20,2021 Page 465 of 828 VACANT INDUSTRIAL LAND GENERAL ASSUMPTIONS & LIMITING CONDITIONS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 70 General Assumptions and Limiting Conditions This appraisal is subject to the following general assumptions and limiting conditions: 1. The legal description – if furnished to us – is assumed to be correct. 2. No responsibility is assumed for legal matters, questions of survey or title, soil or subsoil conditions, engineering, availability or capacity of utilities, or other similar technical matters. The appraisal does not constitute a survey of the property appraised. All existing liens and encumbrances have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management unless otherwise noted. 3. Unless otherwise noted, the appraisal will value the property as though free of contamination. Valbridge Property Advisors | Los Angeles-Inland Empire will conduct no hazardous materials or contamination inspection of any kind. It is recommended that the client hire an expert if the presence of hazardous materials or contamination poses any concern. 4. The stamps and/or consideration placed on deeds used to indicate sales are in correct relationship to the actual dollar amount of the transaction. 5. Unless otherwise noted, it is assumed there are no encroachments, zoning violations or restrictions existing in the subject property. 6. The appraiser is not required to give testimony or attendance in court by reason of this appraisal, unless previous arrangements have been made. 7. Unless expressly specified in the engagement letter, the fee for this appraisal does not include the attendance or giving of testimony by Appraiser at any court, regulatory or other proceedings, or any conferences or other work in preparation for such proceeding. If any partner or employee of Valbridge Property Advisors | Los Angeles-Inland Empire is asked or required to appear and/or testify at any deposition, trial, or other proceeding about the preparation, conclusions or any other aspect of this assignment, client shall compensate Appraiser for the time spent by the partner or employee in appearing and/or testifying and in preparing to testify according to the Appraiser’s then current hourly rate plus reimbursement of expenses. 8. The values for land and/or improvements, as contained in this report, are constituent parts of the total value reported and neither is (or are) to be used in making a summation appraisal of a combination of values created by another appraiser. Either is invalidated if so used. 9. The dates of value to which the opinions expressed in this report apply are set forth in this report. We assume no responsibility for economic or physical factors occurring at some point at a later date, which may affect the opinions stated herein. The forecasts, projections, or operating estimates contained herein are based on current market conditions and anticipated short-term supply and demand factors and are subject to change with future conditions. Appraiser is not responsible for determining whether the date of value requested by Client is appropriate for Client’s intended use. 10. The sketches, maps, plats and exhibits in this report are included to assist the reader in visualizing the property. The appraiser has made no survey of the property and assumed no responsibility in connection with such matters. 11. The information, estimates and opinions, which were obtained from sources outside of this office, are considered reliable. However, no liability for them can be assumed by the appraiser. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:107 Menifee Mayor and City Council January 20,2021 Page 466 of 828 VACANT INDUSTRIAL LAND GENERAL ASSUMPTIONS & LIMITING CONDITIONS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 71 12. Possession of this report, or a copy thereof, does not carry with it the right of publication. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to property value, the identity of the appraisers, professional designations, reference to any professional appraisal organization or the firm with which the appraisers are connected), shall be disseminated to the public through advertising, public relations, news, sales, or other media without prior written consent and approval. 13. No claim is intended to be expressed for matters of expertise that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers. We claim no expertise in areas such as, but not limited to, legal, survey, structural, environmental, pest control, mechanical, etc. 14. This appraisal was prepared for the sole and exclusive use of the client for the function outlined herein. Any party who is not the client or intended user identified in the appraisal or engagement letter is not entitled to rely upon the contents of the appraisal without express written consent of Valbridge Property Advisors | Los Angeles-Inland Empire and Client. The Client shall not include partners, affiliates, or relatives of the party addressed herein. The appraiser assumes no obligation, liability or accountability to any third party. 15. Distribution of this report is at the sole discretion of the client, but third-parties not listed as an intended user on the face of the appraisal or the engagement letter may not rely upon the contents of the appraisal. In no event shall client give a third-party a partial copy of the appraisal report. We will make no distribution of the report without the specific direction of the client. 16. This appraisal shall be used only for the function outlined herein, unless expressly authorized by Valbridge Property Advisors | Los Angeles-Inland Empire. 17. This appraisal shall be considered in its entirety. No part thereof shall be used separately or out of context. 18. Unless otherwise noted in the body of this report, this appraisal assumes that the subject property does not fall within the areas where mandatory flood insurance is effective. Unless otherwise noted, we have not completed nor have we contracted to have completed an investigation to identify and/or quantify the presence of non-tidal wetland conditions on the subject property. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 19. The flood maps are not site specific. We are not qualified to confirm the location of the subject property in relation to flood hazard areas based on the FEMA Flood Insurance Rate Maps or other surveying techniques. It is recommended that the client obtain a confirmation of the subject property’s flood zone classification from a licensed surveyor. 20. If the appraisal is for mortgage loan purposes 1) we assume satisfactory completion of improvements if construction is not complete, 2) no consideration has been given for rent loss during rent-up unless noted in the body of this report, and 3) occupancy at levels consistent with our “Income and Expense Projection” are anticipated. 21. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:108 Menifee Mayor and City Council January 20,2021 Page 467 of 828 VACANT INDUSTRIAL LAND GENERAL ASSUMPTIONS & LIMITING CONDITIONS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 72 22. Our inspection included an observation of the land and improvements thereon only. It was not possible to observe conditions beneath the soil or hidden structural components within the improvements. We inspected the buildings involved, and reported damage (if any) by termites, dry rot, wet rot, or other infestations as a matter of information, and no guarantee of the amount or degree of damage (if any) is implied. Condition of heating, cooling, ventilation, electrical and plumbing equipment is considered to be commensurate with the condition of the balance of the improvements unless otherwise stated. Should the client have concerns in these areas, it is the client’s responsibility to order the appropriate inspections. The appraiser does not have the skill or expertise to make such inspections and assumes no responsibility for these items. 23. This appraisal does not guarantee compliance with building code and life safety code requirements of the local jurisdiction. It is assumed that all required licenses, consents, certificates of occupancy or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value conclusion contained in this report is based unless specifically stated to the contrary. 24. When possible, we have relied upon building measurements provided by the client, owner, or associated agents of these parties. In the absence of a detailed rent roll, reliable public records, or “as-built” plans provided to us, we have relied upon our own measurements of the subject improvements. We follow typical appraisal industry methods; however, we recognize that some factors may limit our ability to obtain accurate measurements including, but not limited to, property access on the day of inspection, basements, fenced/gated areas, grade elevations, greenery/shrubbery, uneven surfaces, multiple story structures, obtuse or acute wall angles, immobile obstructions, etc. Professional building area measurements of the quality, level of detail, or accuracy of professional measurement services are beyond the scope of this appraisal assignment. 25. We have attempted to reconcile sources of data discovered or provided during the appraisal process, including assessment department data. Ultimately, the measurements that are deemed by us to be the most accurate and/or reliable are used within this report. While the measurements and any accompanying sketches are considered to be reasonably accurate and reliable, we cannot guarantee their accuracy. Should the client desire more precise measurement, they are urged to retain the measurement services of a qualified professional (space planner, architect or building engineer) as an alternative source. If this alternative measurement source reflects or reveals substantial differences with the measurements used within the report, upon request of the client, the appraiser will submit a revised report for an additional fee. 26. In the absence of being provided with a detailed land survey, we have used assessment department data to ascertain the physical dimensions and acreage of the property. Should a survey prove this information to be inaccurate, upon request of the client, the appraiser will submit a revised report for an additional fee. 27. If only preliminary plans and specifications were available for use in the preparation of this appraisal, and a review of the final plans and specifications reveals substantial differences upon request of the client the appraiser will submit a revised report for an additional fee. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:109 Menifee Mayor and City Council January 20,2021 Page 468 of 828 VACANT INDUSTRIAL LAND GENERAL ASSUMPTIONS & LIMITING CONDITIONS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 73 28. Unless otherwise stated in this report, the value conclusion is predicated on the assumption that the property is free of contamination, environmental impairment or hazardous materials. Unless otherwise stated, the existence of hazardous material was not observed by the appraiser and the appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required for discovery. The client is urged to retain an expert in this field, if desired. 29. The Americans with Disabilities Act (“ADA”) became effective January 26, 1992. We have not made a specific compliance survey of the property to determine if it is in conformity with the various requirements of the ADA. It is possible that a compliance survey of the property, together with an analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this could have a negative effect on the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in developing an opinion of value. 30. This appraisal applies to the land and building improvements only. The value of trade fixtures, furnishings, and other equipment, or subsurface rights (minerals, gas, and oil) were not considered in this appraisal unless specifically stated to the contrary. 31. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated, unless specifically stated to the contrary. 32. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute prediction of future operating results. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. 33. Any estimate of insurable value, if included within the scope of work and presented herein, is based upon figures developed consistent with industry practices. However, actual local and regional construction costs may vary significantly from our estimate and individual insurance policies and underwriters have varied specifications, exclusions, and non-insurable items. As such, we strongly recommend that the Client obtain estimates from professionals experienced in establishing insurance coverage. This analysis should not be relied upon to determine insurance coverage and we make no warranties regarding the accuracy of this estimate. 34. The data gathered in the course of this assignment (except data furnished by the Client) shall remain the property of the Appraiser. The appraiser will not violate the confidential nature of the appraiser- client relationship by improperly disclosing any confidential information furnished to the appraiser. Notwithstanding the foregoing, the Appraiser is authorized by the client to disclose all or any portion of the appraisal and related appraisal data to appropriate representatives of the Appraisal Institute if such disclosure is required to enable the appraiser to comply with the Bylaws and Regulations of such Institute now or hereafter in effect. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:110 Menifee Mayor and City Council January 20,2021 Page 469 of 828 VACANT INDUSTRIAL LAND GENERAL ASSUMPTIONS & LIMITING CONDITIONS © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 74 35. You and Valbridge Property Advisors | Los Angeles-Inland Empire both agree that any dispute over matters in excess of $5,000 will be submitted for resolution by arbitration. This includes fee disputes and any claim of malpractice. The arbitrator shall be mutually selected. If Valbridge Property Advisors | Los Angeles-Inland Empire and the client cannot agree on the arbitrator, the presiding head of the Local County Mediation & Arbitration panel shall select the arbitrator. Such arbitration shall be binding and final. In agreeing to arbitration, we both acknowledge that, by agreeing to binding arbitration, each of us is giving up the right to have the dispute decided in a court of law before a judge or jury. In the event that the client, or any other party, makes a claim against Valbridge Property Advisors | Los Angeles-Inland Empire or any of its employees in connections with or in any way relating to this assignment, the maximum damages recoverable by such claimant shall be the amount actually received by Valbridge Property Advisors | Los Angeles-Inland Empire for this assignment, and under no circumstances shall any claim for consequential damages be made. 36. Valbridge Property Advisors | Los Angeles-Inland Empire shall have no obligation, liability, or accountability to any third party. Any party who is not the “client” or intended user identified on the face of the appraisal or in the engagement letter is not entitled to rely upon the contents of the appraisal without the express written consent of Valbridge Property Advisors | Los Angeles-Inland Empire. “Client” shall not include partners, affiliates, or relatives of the party named in the engagement letter. Client shall hold Valbridge Property Advisors | Los Angeles-Inland Empire and its employees harmless in the event of any lawsuit brought by any third party, lender, partner, or part-owner in any form of ownership or any other party as a result of this assignment. The client also agrees that in case of lawsuit arising from or in any way involving these appraisal services, client will hold Valbridge Property Advisors | Los Angeles-Inland Empire harmless from and against any liability, loss, cost, or expense incurred or suffered by Valbridge Property Advisors | Los Angeles- Inland Empire in such action, regardless of its outcome. 37. The Valbridge Property Advisors office responsible for the preparation of this report is independently owned and operated by Cummings Appraisal Group, Inc.. Neither Valbridge Property Advisors, Inc., nor any of its affiliates has been engaged to provide this report. Valbridge Property Advisors, Inc. does not provide valuation services, and has taken no part in the preparation of this report. 38. If any claim is filed against any of Valbridge Property Advisors, Inc., a Florida Corporation, its affiliates, officers or employees, or the firm providing this report, in connection with, or in any way arising out of, or relating to, this report, or the engagement of the firm providing this report, then (1) under no circumstances shall such claimant be entitled to consequential, special or other damages, except only for direct compensatory damages, and (2) the maximum amount of such compensatory damages recoverable by such claimant shall be the amount actually received by the firm engaged to provide this report. 39. This report and any associated work files may be subject to evaluation by Valbridge Property Advisors, Inc., or its affiliates, for quality control purposes. 40. Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing general assumptions and limiting conditions. 41. The global outbreak of a "novel coronavirus" (known as COVID-19) was officially declared a pandemic by the World Health Organization (WHO). It is currently unknown what direct, or indirect, effect, if any, this event may have on the national economy, the local economy or the market in which the subject property is located. The reader is cautioned, and reminded that the conclusions presented in this appraisal report apply only as of the effective date(s) indicated. The appraiser makes no representation as to the effect on the subject property of this event, or any event, subsequent to the effective date of the appraisal. Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:111 Menifee Mayor and City Council January 20,2021 Page 470 of 828 VACANT INDUSTRIAL LAND CERTIFICATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 75 Certification – Randy Walker I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. The undersigned has not performed services regarding the property that is the subject of this report within the three-year period immediately preceding agreement of this assignment. 5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 9. Randy Walker has personally inspected the subject property. 10. No one provided significant real property appraisal assistance to the person signing this certification, unless otherwise noted. 11. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 13. As of the date of this report, the undersigned has completed the Standards and Ethics Education Requirement for Candidates/Practicing Affiliates of the Appraisal Institute. Randy Walker Senior Appraiser California License #AG032700 License Expires 12-23-2021 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:112 Menifee Mayor and City Council January 20,2021 Page 471 of 828 VACANT INDUSTRIAL LAND CERTIFICATION © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 76 Certification – Calvin Cummings, MAI I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. The undersigned has not performed services regarding the property that is the subject of this report within the three-year period immediately preceding agreement of this assignment. 5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 9. Calvin Cummings did not personally inspect the subject property. 10. No one provided significant real property appraisal assistance to the person signing this certification, unless otherwise noted. 11. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 13. As of the date of this report, the undersigned has completed the continuing education program for Designated Members of the Appraisal Institute. Calvin Cummings, MAI Senior Managing Director California License #AG005293 License Expires 10-09-2022 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:113 Menifee Mayor and City Council January 20,2021 Page 472 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 77 Addenda Additional Subject Photographs Letter of Engagement Legal Description Purchase Sale Agreement Glossary Qualifications  Randy Walker - Senior Appraiser  Calvin Cummings, MAI - Senior Managing Director Information on Valbridge Property Advisors Office Locations Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:114 Menifee Mayor and City Council January 20,2021 Page 473 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 78 Additional Subject Photographs Looking south Looking west Looking south Looking west from street Looking east from middle Looking north along Murrieta Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:115 Menifee Mayor and City Council January 20,2021 Page 474 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 79 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:116 Menifee Mayor and City Council January 20,2021 Page 475 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 80 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:117 Menifee Mayor and City Council January 20,2021 Page 476 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 81 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:118 Menifee Mayor and City Council January 20,2021 Page 477 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 82 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:119 Menifee Mayor and City Council January 20,2021 Page 478 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 83 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:120 Menifee Mayor and City Council January 20,2021 Page 479 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 84 Letter of Engagement Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:121 Menifee Mayor and City Council January 20,2021 Page 480 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 85 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:122 Menifee Mayor and City Council January 20,2021 Page 481 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 86 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:123 Menifee Mayor and City Council January 20,2021 Page 482 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 87 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:124 Menifee Mayor and City Council January 20,2021 Page 483 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 88 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:125 Menifee Mayor and City Council January 20,2021 Page 484 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 89 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:126 Menifee Mayor and City Council January 20,2021 Page 485 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 90 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:127 Menifee Mayor and City Council January 20,2021 Page 486 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 91 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:128 Menifee Mayor and City Council January 20,2021 Page 487 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 92 Legal Description Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:129 Menifee Mayor and City Council January 20,2021 Page 488 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 93 Purchase Sale Agreement Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:130 Menifee Mayor and City Council January 20,2021 Page 489 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 94 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:131 Menifee Mayor and City Council January 20,2021 Page 490 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 95 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:132 Menifee Mayor and City Council January 20,2021 Page 491 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 96 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:133 Menifee Mayor and City Council January 20,2021 Page 492 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 97 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:134 Menifee Mayor and City Council January 20,2021 Page 493 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 98 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:135 Menifee Mayor and City Council January 20,2021 Page 494 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 99 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:136 Menifee Mayor and City Council January 20,2021 Page 495 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 100 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:137 Menifee Mayor and City Council January 20,2021 Page 496 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 101 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:138 Menifee Mayor and City Council January 20,2021 Page 497 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 102 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:139 Menifee Mayor and City Council January 20,2021 Page 498 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 103 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:140 Menifee Mayor and City Council January 20,2021 Page 499 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 104 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:141 Menifee Mayor and City Council January 20,2021 Page 500 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 105 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:142 Menifee Mayor and City Council January 20,2021 Page 501 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 106 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:143 Menifee Mayor and City Council January 20,2021 Page 502 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 107 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:144 Menifee Mayor and City Council January 20,2021 Page 503 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 108 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:145 Menifee Mayor and City Council January 20,2021 Page 504 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 109 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:146 Menifee Mayor and City Council January 20,2021 Page 505 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 110 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:147 Menifee Mayor and City Council January 20,2021 Page 506 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 111 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:148 Menifee Mayor and City Council January 20,2021 Page 507 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 112 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:149 Menifee Mayor and City Council January 20,2021 Page 508 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 113 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:150 Menifee Mayor and City Council January 20,2021 Page 509 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 114 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:151 Menifee Mayor and City Council January 20,2021 Page 510 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 115 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:152 Menifee Mayor and City Council January 20,2021 Page 511 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 116 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:153 Menifee Mayor and City Council January 20,2021 Page 512 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 117 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:154 Menifee Mayor and City Council January 20,2021 Page 513 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 118 Glossary Definitions are taken from The Dictionary of Real Estate Appraisal, 6th Edition (Dictionary), the Uniform Standards of Professional Appraisal Practice (USPAP), and Building Owners and Managers Association International (BOMA). Absolute Net Lease A lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long-term lease to a credit tenant. (Dictionary) Amortization The process of retiring a debt or recovering a capital investment, typically through scheduled, systematic repayment of the principal; a program of periodic contributions to a sinking fund or debt retirement fund. (Dictionary) As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. (Dictionary) Base Rent The minimum rent stipulated in a lease. (Dictionary) Base Year The year on which escalation clauses in a lease are based. (Dictionary) Building Common Area In office buildings, the areas of the building that provide services to building tenants but which are not included in the office area or store area of any specific tenant. These areas may include, but shall not be limited to, main and auxiliary lobbies, atrium spaces at the level of the finished floor, concierge areas or security desks, conference rooms, lounges or vending areas, food service facilities, health or fitness centers, daycare facilities, locker or shower facilities, mail rooms, fire control rooms, fully enclosed courtyards outside the exterior walls, and building core and service areas such as fully enclosed mechanical or equipment rooms. Specifically excluded from building common area are floor common areas, parking space, portions of loading docks outside the building line, and major vertical penetrations. (BOMA) Building Rentable Area The sum of all floor rentable areas. Floor rentable area is the result of subtracting from the gross measured area of a floor the major vertical penetrations on that same floor. It is generally fixed for the life of the building and is rarely affected by changes in corridor size or configuration. (BOMA) Bulk Value The value of multiple units, subdivided plots, or properties in a portfolio as though sold together in a single transaction. Certificate of Occupancy (COO) A formal written acknowledgment by an appropriate unit of local government that a new construction or renovation project is at the stage where it meets applicable health and safety codes and is ready for commercial or residential occupancy. (Dictionary) Common Area Maintenance (CAM) The expense of operating and maintaining common areas; may or may not include management charges and usually does not include capital expenditures on tenant improvements or other improvements to the property. (Dictionary) The amount of money charged to tenants for their shares of maintaining a [shopping] center’s common area. The charge that a tenant pays for shared services and facilities such as electricity, security, and maintenance of parking lots. Items charged to common area maintenance may include cleaning services, parking lot sweeping and maintenance, snow removal, security and upkeep. (ICSC – International Council of Shopping Centers, 4th Ed.) Condominium A multiunit structure, or a unit within such a structure, with a condominium form of ownership. (Dictionary) Conservation Easement An interest in real estate restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses. A conservation easement may permit farming, timber harvesting, or other uses of a rural nature as well as some types of conservation-oriented development to continue, subject to the easement. (Dictionary) Contributory Value A type of value that reflects the amount a property or component of a property contributes to the value of another asset or to the property as a whole. The change in the value of a property as a whole, whether positive or negative, resulting from the addition or deletion of a property component. Also called deprival value in some countries. (Dictionary) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:155 Menifee Mayor and City Council January 20,2021 Page 514 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 119 Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service (DCR = NOI/Im), which measures the relative ability of a property to meet its debt service out of net operating income; also called debt service coverage ratio (DSCR). A larger DCR typically indicates a greater ability for a property to withstand a reduction of income, providing an improved safety margin for a lender. (Dictionary) Deed Restriction A provision written into a deed that limits the use of land. Deed restrictions usually remain in effect when title passes to subsequent owners. (Dictionary) Depreciation In appraisal, a loss in property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. In accounting, an allocation of the original cost of an asset, amortizing the cost over the asset’s life; calculated using a variety of standard techniques. (Dictionary) Disposition Value The most probable price that a specified interest in property should bring under the following conditions:  Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market.  The property is subjected to market conditions prevailing as of the date of valuation;  Both the buyer and seller are acting prudently and knowledgeably;  The seller is under compulsion to sell;  The buyer is typically motivated;  Both parties are acting in what they consider to be their best interests;  An adequate marketing effort will be made during the exposure time;  Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto; and  The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Dictionary) Double Net (Net Net) Lease An alternative term for a type of net lease. In some markets, a net net lease is defined as a lease in which the tenant is responsible to pay both property taxes and premiums for insuring the building(s). (Valbridge) (The market definition of a double net lease varies depending on the market) Easement The right to use another’s land for a stated purpose. (Dictionary) EIFS Exterior Insulation Finishing System. This is a type of exterior wall cladding system. Sometimes referred to as dry-vit. Effective Date The date on which the appraisal or review opinion applies. (SVP) In a lease document, the date upon which the lease goes into effect. (Dictionary) Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income. (Dictionary) Effective Rent Total base rent, or minimum rent stipulated in a lease, over the specified lease term minus rent concessions; the rent that is effectively paid by a tenant net of financial concessions provided by a landlord. (TIs). (Dictionary) EPDM Ethylene Propylene Diene Monomer Rubber. A type of synthetic rubber typically used for roof coverings. (Dictionary) Escalation Clause A clause in an agreement that provides for the adjustment of a price or rent based on some event or index. e.g., a provision to increase rent if operating expenses increase; also called escalator clause, expense recovery clause or stop clause. (Dictionary) Estoppel Certificate A signed statement by a party (such as a tenant or a mortgagee) certifying, for another’s benefit, that certain facts are correct, such as that a lease exists, that there are no defaults, and that rent is paid to a certain date. (Black’s) In real estate, a buyer of rental property typically requests estoppel certificates from existing tenants. Sometimes referred to as an estoppel letter. (Dictionary) Excess Land Land that is not needed to serve or support the existing use. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. (Dictionary) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:156 Menifee Mayor and City Council January 20,2021 Page 515 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 120 Excess Rent The amount by which contract rent exceeds market rent at the time of the appraisal; created by a lease favorable to the landlord (lessor) and may reflect unusual management, unknowledgeable or unusually motivated parties, a lease execution in an earlier, stronger rental market, or an agreement of the parties. (Dictionary) Expense Stop A clause in a lease that limits the landlord’s expense obligation, which results in the lessee paying operating expenses above a stated level or amount. (Dictionary) Exposure Time The time a property remains on the market. The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market. (Dictionary) Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. (USPAP) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. (Dictionary) Floor Common Area In an office building, the areas on a floor such as washrooms, janitorial closets, electrical rooms, telephone rooms, mechanical rooms, elevator lobbies, and public corridors which are available primarily for the use of tenants on that floor. (BOMA) Full Service (Gross) Lease A lease in which the landlord receives stipulated rent and is obligated to pay all of the property’s operating and fixed expenses; also called a full service lease. (Dictionary) Furniture, Fixtures, and Equipment (FF&E) Business trade fixtures and personal property, exclusive of inventory. (Dictionary) Going-Concern Value An outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business. (Dictionary) Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above- grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. Gross leasable area plus all common areas. For residential space, the total area of all floor levels measured from the exterior of the walls and including the superstructure and substructure basement; typically does not include garage space. (Dictionary) Gross Measured Area The total area of a building enclosed by the dominant portion (the portion of the inside finished surface of the permanent outer building wall which is 50 percent or more of the vertical floor-to-ceiling dimension, at the given point being measured as one moves horizontally along the wall), excluding parking areas and loading docks (or portions of same) outside the building line. It is generally not used for leasing purposes and is calculated on a floor by floor basis. (BOMA) Gross Up Method A method of calculating variable operating expenses in income-producing properties when less than 100% occupancy is assumed. Expenses reimbursed based on the amount of occupied space, rather than on the total building area, are described as “grossed up.” (Dictionary) Gross Retail Sellout The sum of the separate and distinct market value opinions for each of the units in a condominium, subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as though sold together in a single transaction; it is simply the total of the individual market value conclusions. Also called the aggregate of the retail values, aggregate retail selling price or sum of the retail values. (Dictionary) Ground Lease A lease that grants the right to use and occupy land. Improvements made by the ground lessee typically revert to the ground lessor at the end of the lease term. (Dictionary) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:157 Menifee Mayor and City Council January 20,2021 Page 516 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 121 Ground Rent The rent paid for the right to use and occupy land according to the terms of a ground lease; the portion of the total rent allocated to the underlying land. (Dictionary) HVAC Heating, ventilation, air conditioning (HVAC) system. A unit that regulates the temperature and distribution of heat and fresh air throughout a building. (Dictionary) Highest and Best Use The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use of for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) (Dictionary) Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP) Insurable Value A type of value for insurance purposes. (Typically this includes replacement cost less basement excavation, foundation, underground piping and architect’s fees). (Dictionary) Investment Value The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. (Dictionary) Just Compensation In condemnation, the amount of loss for which a property owner is compensated when his or her property is taken. Just compensation should put the owner in as good a position pecuniarily as he or she would have been if the property had not been taken. (Dictionary) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. (Dictionary) Leasehold Interest The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (Dictionary) See also Positive Leasehold and Negative Leasehold. Lessee (Tenant) One who has the right to occupancy and use of the property of another for a period of time according to a lease agreement. (Dictionary) Lessor (Landlord) One who conveys the rights of occupancy and use to others under a lease agreement. (Dictionary) Liquidation Value The most probable price that a specified interest in property should bring under the following conditions:  Consummation of a sale within a short time period.  The property is subjected to market conditions prevailing as of the date of valuation.  Both the buyer and seller are acting prudently and knowledgeably.  The seller is under extreme compulsion to sell.  The buyer is typically motivated.  Both parties are acting in what they consider to be their best interests.  A normal marketing effort is not possible due to the brief exposure time.  Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Dictionary) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:158 Menifee Mayor and City Council January 20,2021 Page 517 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 122 Loan to Value Ratio (LTV) The ratio between a mortgage loan and the value of the property pledged as security, usually expressed as a percentage. (Dictionary) Major Vertical Penetrations Stairs, elevator shafts, flues, pipe shafts, vertical ducts, and the like, and their enclosing walls. Atria, lightwells and similar penetrations above the finished floor are included in this definition. Not included, however, are vertical penetrations built for the private use of a tenant occupying office areas on more than one floor. Structural columns, openings for vertical electric cable or telephone distribution, and openings for plumbing lines are not considered to be major vertical penetrations. (BOMA) Market Rent The most probable rent that a property should bring in a competitive and open market under all the conditions requisite to a fair lease transaction, the lessee and the lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the execution of a lease as of a specified date under conditions whereby: Lessee and lessor are typically motivated; Both parties are well informed or well advised, and acting in what they consider their best interests; Payment is made in terms of cash or in terms of financial arrangements comparable thereto; and The rent reflects specified terms and conditions, such as permitted uses, use restrictions, expense obligations, duration, concessions, rental adjustments and revaluations, renewal and purchase options, and tenant improvements (TIs). (Appraisal Institute) Market Value The most probable price that a property should bring in a competitive and open market under all condition’s requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:  Buyer and seller are typically motivated;  Both parties are well informed or well advised, and acting in what they consider their own best interests;  A reasonable time is allowed for exposure in the open market;  Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and  The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Dictionary) Marketing Time An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. (Advisory Opinion 7 of the Appraisal Standards Board of the Appraisal Foundation) Master Lease A lease in which the fee owner leases a part or the entire property to a single entity (the master lease) in return for a stipulated rent. The master lessee then leases the property to multiple tenants. (Dictionary) Modified Gross Lease A lease in which the landlord receives stipulated rent and is obligated to pay some, but not all, of the property’s operating and fixed expenses. Since assignment of expenses varies among modified gross leases, expense responsibility must always be specified. In some markets, a modified gross lease may be called a double net lease, net net lease, partial net lease, or semi-gross lease. (Dictionary) Negative Leasehold A lease situation in which the market rent is less than the contract rent. (Dictionary) Operating Expense Ratio The ratio of total operating expenses to effective gross income (TOE/EGI); the complement of the net income ratio, i.e., OER = 1 – NIR (Dictionary) Option A legal contract, typically purchased for a stated consideration, that permits but does not require the holder of the option (known as the optionee) to buy, sell, or lease real estate for a stipulated period of time in accordance with specified terms; a unilateral right to exercise a privilege. (Dictionary) Partial Interest Divided or undivided rights in real estate that represent less than the whole, i.e., a fractional interest such as a tenancy in common, easement, or life interest. (Dictionary) Pass Through A tenant’s portion of operating expenses that may be composed of common area maintenance (CAM), real property taxes, property insurance, and any other expenses determined in the lease agreement to be paid by the tenant. (Dictionary) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:159 Menifee Mayor and City Council January 20,2021 Page 518 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 123 Percentage Lease A lease in which the rent or some portion of the rent represents a specified percentage of the volume of business, productivity, or use achieved by the tenant. (Dictionary) Positive Leasehold A lease situation in which the market rent is greater than the contract rent. (Dictionary) Potential Gross Income (PGI) The total income attributable to property at full occupancy before vacancy and operating expenses are deducted. (Dictionary) Prospective Future Value Upon Completion A prospective market value may be appropriate for the valuation of a property interest related to a credit decision for a proposed development or renovation project. According to USPAP, an appraisal with a prospective market value reflects an effective date that is subsequent to the date of the appraisal report. … The prospective market value –as completed- reflects the property’s market value as of the time that development is expected to be complete. (Dictionary) Prospective Future Value Upon Stabilization A prospective market value may be appropriate for the valuation of a property interest related to a credit decision for a proposed development or renovation project. According to USPAP, an appraisal with a prospective market value reflects an effective date that is subsequent to the date of the appraisal report …The prospective market value – as stabilized – reflects the property’s market value as of the time the property is projected to achieve stabilized occupancy. For an income-producing property, stabilized occupancy is the occupancy level that a property is expected to achieve after the property is exposed to the market for lease over a reasonable period of time and at comparable terms and conditions to other similar properties. (Dictionary) Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvement, using modern materials and current standards, design, and layout. (Dictionary) Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship and embodying all of the deficiencies, superadequacies, and obsolescence of the subject building. (Dictionary) Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.” (Dictionary) Sandwich Leasehold Estate The interest held by the sandwich leaseholder when the property is subleased to another party; a type of leasehold estate. (Dictionary) Sublease An agreement in which the lessee in a prior lease conveys the right of use and occupancy of a property to another, the sublessee, for a specific period of time, which may or may not be coterminous with the underlying lease term. (Dictionary) Subordination A contractual arrangement in which a party with a claim to certain assets agrees to make his or her claim junior, or subordinate, to the claims of another party. (Dictionary) Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. (Dictionary) TPO Thermoplastic polyolefin, a resilient synthetic roof covering. Triple Net (Net Net Net) Lease An alternative term for a type of net lease. In some markets, a net net net lease is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management; also called NNN lease, net net net lease, or fully net lease. (Dictionary) (The market definition of a triple net lease varies; in some cases, tenants pay for items such as roof repairs, parking lot repairs, and other similar items.) Usable Area The measured area of an office area, store area, or building common area on a floor. The total of all the usable areas for a floor shall equal floor usable area of that same floor. (BOMA) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:160 Menifee Mayor and City Council January 20,2021 Page 519 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 124 Value-in-Use The value of a property assuming a specific use, which may or may not be the property’s highest and best use on the effective date of the appraisal. Value in use may or may not be equal to market value but is different conceptually. (Dictionary) VTAB Value of the Total Assets of a Business. The value of a going concern (i.e. the business enterprise). (Dictionary) Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:161 Menifee Mayor and City Council January 20,2021 Page 520 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 125 Qualifications Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:162 Menifee Mayor and City Council January 20,2021 Page 521 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 126 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:163 Menifee Mayor and City Council January 20,2021 Page 522 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 127 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:164 Menifee Mayor and City Council January 20,2021 Page 523 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 128 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:165 Menifee Mayor and City Council January 20,2021 Page 524 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 129 Valbridge Property Advisors Information / Office Locations Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:166 Menifee Mayor and City Council January 20,2021 Page 525 of 828 VACANT INDUSTRIAL LAND ADDENDA © 2020 VALBRIDGE PROPERTY ADVISORS | Los Angeles-Inland Empire Page 130 Item Title:10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856,Menifee Land DV,LLC Item Page Number:167 Menifee Mayor and City Council January 20,2021 Page 526 of 828 10.22.aPacket Pg. 497Attachment: Exhibit A (1621 : Final Map for Tract Map 31856 – Menifee Land DV, LLC.)Item Title: 10.11 Lien Agreement and Subdivision Improvement Agreements for Tract 31856, Menifee Land DV, LLCItem Page Number: 168Menifee Mayor and City Council                                                                               January 20, 2021Page 527 of 828 CITY OF MENIFEE SUBJECT: Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic Signals MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Run Chen, Senior Engineer REVIEWED BY: Yolanda Macalalad, Assistant City Engineer APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Accept the Traffic Signal Improvements at Menifee Road and Holland Road, Project No. CIP 20-06; and 2. Accept the Traffic Signal Improvements at Menifee Road and Camino Cristal Project No. CIP 20-07; and 3. Authorize the City Clerk’s Office to file the Notice of Completion for the Traffic Signals with the Riverside County Recorder’s Office. DISCUSSION The Traffic Signal Projects at Menifee Road/ Holland Road and Menifee Road/ Camino Cristal installed new traffic signals, signing, striping and American’s with Disability Act improvements at the two intersections for improved public safety. The completed signals were recommended as part of the City Traffic Signals Project priority list. Filing the Notice of Completion protects the City from future claims against the two projects, by providing proper noticing to each contractor, subcontractor, and material supplier that the projects have been completed. The Payment Bond (Labor and Materials Bond) and Performance Bond will be released 30 days from the date of recording the Notice of Completion, provided no Stop Notices are filed preventing said releases. The Public Works and Engineering Department staff, in collaboration with the Riverside County Transportation Department and Southern California Edison, inspected the materials supplied, quality of the materials, construction methods, and workmanship of the installations and determined that the improvements constructed by the contractor, California Professional Item Title:10.12 Notice of Completion,Menifee Road &Holland Road and Menifee Road &Camino Cristal Traffic Signals Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 528 of 828 City of Menifee Staff Report Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic Signals January 20, 2021 Page 2 of 2 2 9 9 Engineering, Inc., meet project requirements as specified in the contract documents. The Capital Improvement Program team is pleased to announce that these traffic signal projects were completed under budget as noted below. The project budget of $1,063,858 was approved by the City Council on April 15, 2020. Funding for this project is as follows: Fund Project Account #Budget Amount Measure DD Menifee/Holland Traffic Signal 105-4555-58088 $83,495 Measure DD Menifee/ Camino Cristal Traffic Signal 105-4555-58089 $83,495 Capital Projects Menifee/Holland Traffic Signal 320-4555-58088 $103,933 Capital Projects Menifee/ Camino Cristal Traffic Signal 320-4555-58089 $105,815 DIF-17 Signals Menifee/Holland Traffic Signal 510-4555-58088 $343,560 DIF-17 Signals Menifee/ Camino Cristal Traffic Signal 510-4555-58089 $343,560 Total $1,063,858 Final construction costs are outlined below: Expenditure Item Approved Budget Final Cost Construction Contract: $ 930,898 $ 930,898.00 Consultant Labor Compliance: $ 11,800 $ 2137.50 Construction Management/ Inspections $ 28,070 $ 26,669.32** Total Construction Cost: $1,063,858 $ 959,704.82 **Estimated final cost from SCE and RCTD based on agreements. STRATEGIC PLAN OBJECTIVE Safe and Attractive Community FISCAL IMPACT There is no charge for filing a Notice of Completion with the County Recorder’s Office. The operation and maintenance of the two new signals are going to be paid for by Fund 200, Gas Tax. ATTACHMENTS 1. Notice of Completion 2. Close Out Documents 3. Completion Photos Item Title:10.12 Notice of Completion,Menifee Road &Holland Road and Menifee Road &Camino Cristal Traffic Signals Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 529 of 828 Recording Requested By: CITY OF MENIFEE After Recording Mail To: CITY CLERK CITY OF MENIFEE 29844 HAUN ROAD MENIFEE, CA 92586 Record without fee subject to Govt. Code 6103 NOTICE OF COMPLETION (Public Works – Civil Code Sec. 9204) Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic Signals, CIP 20-06 and CIP 20-07 Notice is hereby given that: Work of improvements on the project herein described was accepted as complete on January 20, 2021. The work done: install traffic signals and traffic control appurtenances at the intersections of Menifee Road & Holland Road and Menifee Road and Camino Cristal, construct ADA pedestrian curb ramps. 1. The full name of the Owner is: CITY OF MENIFEE 2. The full address of the Owner is: 29844 HAUN ROAD MENIFEE, CA. 92586 3. The undersigned is a Corporate Officer of the Owner of the interest stated below in the property herein described: CITY OF MENIFEE 29844 HAUN ROAD MENIFEE, CA 92586 4. The name of the contractor for such work of construction is: DBX, Inc. 42024 Avenida Alvarado, Suite A Temecula, CA 92590 5. The property on which said work of improvement was completed is within the City of Menifee, County of Riverside, State of California. STATE OF CALIFORNIA) Ss COUNTY OF RIVERSIDE) I, Sarah Manwaring, hereby certify that I am the City Clerk of the City of Menifee, a municipal corporation, which is the owner of the properties described within this Notice of Completion, executed on behalf of the City; that I have read the notice and know the contents thereof and that the facts therein stated are true of my own knowledge under penalty of perjury under the laws of the state of California; that I make this verification on _________________, 20___ for and on behalf of the City. _____________________________ Sarah Manwarling, City Clerk Item Title:10.12 Notice of Completion,Menifee Road &Holland Road and Menifee Road &Camino Cristal Traffic Signals Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 530 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 4Menifee Mayor and City Council                                                                               January 20, 2021Page 531 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 5Menifee Mayor and City Council                                                                               January 20, 2021Page 532 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 6Menifee Mayor and City Council                                                                               January 20, 2021Page 533 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 7Menifee Mayor and City Council                                                                               January 20, 2021Page 534 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 8Menifee Mayor and City Council                                                                               January 20, 2021Page 535 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 9Menifee Mayor and City Council                                                                               January 20, 2021Page 536 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 10Menifee Mayor and City Council                                                                               January 20, 2021Page 537 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 11Menifee Mayor and City Council                                                                               January 20, 2021Page 538 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 12Menifee Mayor and City Council                                                                               January 20, 2021Page 539 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 13Menifee Mayor and City Council                                                                               January 20, 2021Page 540 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 14Menifee Mayor and City Council                                                                               January 20, 2021Page 541 of 828 Item Title: 10.12 Notice of Completion, Menifee Road & Holland Road and Menifee Road & Camino Cristal Traffic SignalsItem Page Number: 15Menifee Mayor and City Council                                                                               January 20, 2021Page 542 of 828 Holland Road at Menifee Road East Bound Menifee Road at Holland Road North Bound Item Title:10.12 Notice of Completion,Menifee Road &Holland Road and Menifee Road &Camino Cristal Traffic Signals Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 543 of 828 Menifee Road at Camino Cristal North Bound Camino Cristal at Menifee Road East Bound Item Title:10.12 Notice of Completion,Menifee Road &Holland Road and Menifee Road &Camino Cristal Traffic Signals Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 544 of 828 CITY OF MENIFEE SUBJECT: Annexation No. 36 to CFD 2015-2, Plot Plan 17-042, WellQuest Senior Living by WellQuest Menifee, LLC MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Yolanda Macalalad, Assistant City Engineer REVIEWED BY: Yolanda Macalalad, Assistant City Engineer APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Annex territory, located north of Aldergate Drive and east of Antelope Road, owned by WellQuest Menifee LLC, (PP 17-042), into City of Menifee Community Facilities District No. 2015-2 (Maintenance Services) ("CFD No. 2015-2" or "CFD") by taking the following actions: a. Hold public hearing; b. Adopt the Resolution calling the election; c. Hold a special landowner election and canvass the election; and d. Adopt the Resolution declaring results of special landowner election. 2. Introduce an Ordinance amending Ordinance No. 2015-173, levying and apportioning the special tax in CFD No. 2015-2. DISCUSSION On December 16, 2020, the City Council adopted Resolution No. 20-985, declaring its intent to annex territory to CFD No. 2015-2 and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 36. The next step in the annexation proceedings is to hold a public hearing on January 20, 2021 to conduct an election for the landowners and to declare the results of that election. The area included in PP 17-042 proposed within Annexation No. 36 consists of one parcel totaling 5.52 gross acres of vacant property within the City. The project is located north of Aldergate Drive and east of Antelope Road, as shown in the attached Project Map. The proposed maintenance services will include items such as lighting, street maintenance and drainage maintenance. Per the request by WellQuest Menifee, LLC (the Developer), the City will establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation Area No. 36 to pay for those services. Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 545 of 828 City of Menifee Staff Report Plot Plan 17-042 to CFD 2015-2, Annex No. 36, WellQuest Menifee, LLC January 20, 2021 Page 2 of 2 2 3 6 Annexation No. 36 will have a maximum annual tax of $789 per acre on a total of 4.65 net acres of commercial property per year and will be included in CFD No. 2015-2 as “Tax Zone 36”. The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The Property Owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The Developer submitted a "Consent and Waiver" form on file in the City Clerk's Office: to hold the election and declare election results; consent to the shortening of election time requirements; waive analysis and arguments; and waive all notice requirements relating to the conduct of the election immediately following the public hearing. A boundary map entitled "Annexation Map No. 36, Community Facilities District No. 2015-2 (Maintenance Services)" was recorded on April 23, 2020, in Book 85 of Maps of Assessment and Community Facilities Districts at Page 9, in the office of the Riverside County Recorder. Annexing the parcel into CFD No. 2015-2 will cover the costs of maintenance of certain public improvements associated with the development. STRATEGIC PLAN OBJECTIVE Safe and Attractive Community FISCAL IMPACT: The record property owners in the CFD will be responsible for annual payments of special taxes. It is estimated, upon full completion of the development that there will be an annual collection of special tax revenues of approximately $3,668 to be used to pay for maintenance costs within the development. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2015-2 and not through the City’s General Fund. ATTACHMENTS 1. Project Map 2. Resolution Calling for Election, including Exhibit A-Rate and Method of Apportionment and Exhibit B-Ballot 3. Resolution Declaring Election Results, including Exhibit A-Certificate of Election Results 4. Ordinance Levying Special Taxes 5. Petition Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 546 of 828 ATTACHMENT #1 PROJECT LOCATION MAP CFD NO. 2015-2 (MAINTENANCE SERVICES) - ANNEXATION NO. 36  Item Title: 11.2 Annexation No. 36 to CFD 2015-2, Plot Plan 17-042, WellQuest Senior Living by WellQuest Menifee, LLCItem Page Number: 3Menifee Mayor and City Council                                                                               January 20, 2021Page 547 of 828 RESOLUTION NO. 21-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 36) WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on May 20, 2015, the City Council (the “City Council”) of the City of Menifee (the “City”) approved Resolution No. 15-440 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the “CFD No. 2015-2”) for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services (the “Services”) which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the City Council called a special election for May 20, 2015, at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2015-2 were submitted to the qualified electors within the CFD No. 2015-2; and WHEREAS, at a special election held on May 20, 2015, more than two-thirds (⅔) of all votes cast were cast in favor of the levy of a special tax and the establishment of an appropriations limit, as determined by the City Council in Resolution No. 15-441, which was duly adopted on May 20, 2015; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on December 16, 2020 duly adopted Resolution No. 20-985 (the “Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2015- 2 and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for January 20, 2021; and WHEREAS, the territory proposed to be annexed is identified in a map entitled “Annexation Map No. 36, Community Facilities District No. 2015-2 (Maintenance Services)” a copy of which was recorded, on April 23, 2020, in Book 85 of Maps of Assessment and Community Facilities Districts at Page 9, in the office of the Riverside County Recorder; and WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on January 20, 2021, not earlier than the hour of 6:00 p.m. at the City Hall located at 29844 Haun Road, Menifee, California 92586, at which hearing all interested persons were given the opportunity to appear and be heard on the proposed annexation of said territory to the CFD No. 2015-2 and the levy of special taxes within said territory proposed to be annexed, If and to the extent participation in the January 20, 2021 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Menifee (www.cityofmenifee.us), and outside Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 548 of 828 2 of City Hall at 29844 Haun Road, Menifee, California 92586. A copy of the Agenda will be made available upon request to the Menifee City Clerk's office at 951-723-3471; and; WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No. 2015-2, or by fifty percent (50%) or more of the registered voters residing within the territory proposed to be annexed, or by the owners of one- half (½) or more of the area within the CFD No. 2015-2, or by the owners of one-half (½) or more of the territory proposed to be annexed; and WHEREAS, the City Council has determined that there are fewer than twelve (12) registered voters residing in the territory proposed to be annexed to the CFD No. 2015-2 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2015-2 and the levying of a special tax as described in Exhibit A attached hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2015-2 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred with the election date set forth herein. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MENIFEE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The foregoing recitals are true and correct. Section 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention. Section 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2015-2 and the levy of the special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled. Section 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the annexation of territory to the CFD No. 2015-2 are valid and in conformity with the requirements of the Act. Section 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to the CFD No. 2015-2, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in the CFD No. 2015-2, will be levied annually in the CFD No. 2015-2. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit A hereto. Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 549 of 828 3 Section 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. Section 7. Tax Roll Preparation. The office of the Public Works Director, 29844 Haun Road, Menifee, California 92586, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. Section 8. Accountability Measures. Pursuant to Government Code section 50075.1, the City shall create a separate account into which special tax proceeds will be deposited; and the Public Works Director annually shall prepare and file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in the CFD No. 2015-2. Section 9. Special Election; Voting Procedures. The City Council hereby submits the question of levying the special tax within the territory proposed to be annexed to the qualified electors of the territory proposed to be annexed, in accordance with and pursuant to the Act. The special election shall be held on January 20, 2021, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of the territory proposed to be annexed to the CFD No. 2015-2. Because fewer than twelve registered voters reside within the territory proposed to be annexed to the CFD No. 2015-2 on December 10, 2020 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to the CFD No. 2015-2), the qualified electors shall be the landowners within the territory proposed to be annexed to the CFD No. 2015-2, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to the CFD No. 2015-2. (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for the CFD No. 2015-2 shall be consolidated, and the two propositions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to the CFD No. 2015-2. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit B. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on January 20, 2021. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on January 20, 2021, or when all Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 550 of 828 4 qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. Section 10. General Authorization with Respect to the Election. The officers, employees, and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. All actions heretofore taken by the officers, employees, and agents of the City that are in conformity with the purposes and intent of this Resolution are hereby ratified, confirmed, and approved in all respects. Section 11. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this Resolution and the annexation map of the boundaries of the CFD No. 2015-2 in his/her office. Section 12. Effective Date. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 20th day of January 2021. ATTEST: APPROVED: Sarah A. Manwaring, City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM: Jeffrey T. Melching, City Attorney Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 551 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  1 RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR  COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)  OF THE CITY OF MENIFEE  A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined  below) in Community Facilities District No. 2015‐2 (Maintenance Services) (the “CFD No. 2015‐2” or “CFD”;  defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning  July 1, 2015,  in an amount determined by the City Council of the City of Menifee, acting ex officio as the legislative  body of CFD No. 2015‐2, by applying the rates and method of apportionment set forth below. All of the  real property in CFD No. 2015‐2, unless exempted by law or by the provisions herein, shall be taxed to the  extent and in the manner provided herein.  A.DEFINITIONS “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2015‐2 including, but not limited to: 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 to the City, CFD No. 2015‐2, or any designee thereof associated with fulfilling the CFD No. 2015‐2 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Tax; the costs of the City, CFD No. 2015‐2  or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2015‐2 for any other administrative purposes of CFD No. 2015‐2, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Menifee, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 of preceding the Fiscal Year in which the Special Tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County. EXHIBIT A Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 552 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  2  “Building Square Footage” or “BSF” means the floor area square footage reflected on the original  construction building permit issued for construction of a building of Non‐Residential Property and any  Building Square Footage subsequently added to a building of such Taxable Property after issuance of  a building permit for expansion or renovation of such building.    “CFD” or “CFD No. 2015‐2” means the City of Menifee Community Facilities District No. 2015‐2  (Maintenance Services).    “City” has the meaning set forth in the preamble.    “County” means the County of Riverside.    “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit  for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the  Special Tax is being levied.    “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as  provided for in Section G.    “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line  adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.)  or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual  lots for which building permits may be issued without further subdivision.    “Fiscal Year” means the period from and including July 1st of any year to and including the following  June 30th.    “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an  Assessor’s Parcel is assigned consistent with the land use approvals that have been received or  proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is  being levied.    “Maximum Special Tax” means the Maximum Special Tax, as determined in accordance with Section  C below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2015‐ 2.    “Multi‐Family Residential 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.    “Non‐Residential Property” means all Assessor's Parcels of Taxable Property for which a building  permit(s) was issued for a non‐residential use. The Administrator shall make the determination if an  Assessor’s Parcel is Non‐Residential Property.    “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the  actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed  Property,  (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum  Special Tax is the  same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual  Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of  Undeveloped Property.  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 553 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  3  “Residential Unit” or "R/U" means a residential unit that is used or intended to be used as a domicile  by one or more persons, as determined by the Administrator.    “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed  Residential Units have been constructed or for which building permits have been or may be issued for  purposes of constructing one or more Residential Units.    “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982  including, without limitation, those services authorized to be funded by CFD No. 2015‐2 as set forth  in the documents adopted by the City Council at the time the CFD was formed.    “Single Family Residential Property” means any residential property that consists of a building  comprised of attached or detached residential units available for purchase or rent by the general  public.    “Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel  of Taxable Property to fund the Special Tax Requirement.    "Special Tax Requirement" means that amount to be collected in any Fiscal Year to pay for certain  costs as required to meet the needs of CFD No. 2015‐2 in both the current Fiscal Year and the next  Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but  not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii)  maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an  operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative  Expenses. Under no circumstances shall the Special Tax Requirement include funds for Bonds.    "Taxable Property" means all Assessor’s Parcels within CFD No. 2015‐2, which are not Exempt  Property.    “Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre.  "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may  be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies  the Tax Zone in CFD No. 2015‐2 at formation; additional Tax Zones may be created when property is  annexed into the CFD.    "Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1.    "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final  Map approved for the subdivision.    “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed  Property or Approved Property.      B. ASSIGNMENT TO LAND USE CATEGORIES  For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2015‐2 shall be classified  as Developed Property, Approved Property, or Undeveloped Property, and shall be subject  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 554 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  4  to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of  Developed Property and Approved Property shall be classified as either Residential Property or Non‐  Residential Property. Residential Property shall be further classified as Single Family Residential  Property or Multi‐Family Residential Property and the number of Residential Units shall be  determined by the Administrator.    C. MAXIMUM SPECIAL TAX RATES  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Residential Property, all such Assessor’s  Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon  as specified in or shown on the building permit(s) issued or Final Map as determined by the  Administrator. For Parcels of undeveloped property zoned for development of single family attached  or multi‐family units, the number of Residential Units shall be determined by referencing the  condominium plan, apartment plan, site plan or other development plan, or by assigning the  maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single  family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the  Administrator shall determine the actual number of Residential Units contained within the building or  buildings, and the Special Tax levied against the Parcel in the next Fiscal Year shall be calculated by  multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit  identified for the Tract in Table 1 below or as included in Appendix A as each Annexation occurs.  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s  Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map  as determined by the Administrator. Once the Administrator determines the  actual number of  Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax levied against the Parcel  in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or  Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone in Table 1 below or as  included in Appendix A as each Annexation occurs.  a. Developed Property  (i) Maximum Special Tax  The Maximum Special Tax for each Assessor’s Parcel of Taxable Property is shown in Table 1  is shall be specific to each Tax Zone within the CFD. When additional property is annexed into  CFD No. 2015‐2, the rate and method adopted for the annexed property shall reflect the  Maximum Special Tax for the Tax Zones annexed and included in Appendix A. The Maximum  Special Tax for Fiscal Year 2015‐2016 within Tax Zone 1 is identified in Table 1 below:  TABLE  1  MAXIMUM SPECIAL TAX RATES  DEVELOPED PROPERTY    Tax  Zone    Tract    Land Use Category  Taxable  Unit  Maximum  Special Tax  1 32277 Single Family Residential Property R/U $819    (ii) Increase in the Maximum Special Tax  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 555 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  5  On each July 1, commencing on July 1, 2016 the Maximum Special Tax for Developed Property  shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los  Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding  Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories  In some instances an Assessor's Parcel of Developed Property may contain more than one  Land Use Category. The Maximum Special Tax that can be levied on an Assessor's Parcel shall  be the sum of the Maximum Special Tax that can be levied for each Land Use Category located  on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the  Acreage of such Assessor's Parcel shall be allocated to each type of property based on the  amount of Acreage designated for each land use as determined by reference to the site plan  approved for such Assessor's Parcel. The Administrator's allocation to each type of property  shall be final.    b. Approved Property  The Maximum Special Tax for each Assessor’s Parcel of Taxable Property is shown in Table 2 shall  be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No.  2015‐2, the rate and method adopted for the annexed property shall reflect the Maximum Special  Tax for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax for Fiscal  Year 2015‐2016 within the Tax Zone is identified in Table 2 below:  TABLE  2  MAXIMUM SPECIAL TAX RATES  APPROVED PROPERTY    Tax  Zone    Tract    Land Use Category  Taxable  Unit  Maximum  Special Tax  1 32277 Single Family Residential Property R/U $819    On each July 1, commencing on July 1, 2016 the Maximum Special Tax for Approved Property shall  increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐  Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii)  by two percent (2.0%), whichever is greater.    c. Undeveloped Property  The Maximum Special Tax for each Assessor’s Parcel of Taxable Property is shown in Table 3 shall  be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No.  2015‐2, the rate and method adopted for the annexed property shall reflect the Maximum Special  Tax for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax for Fiscal  Year 2015‐2016 within the Tax Zone is identified in Table 3 below:  TABLE  3  MAXIMUM SPECIAL TAX RATES  UNDEVELOPED PROPERTY    Tax Zone Tracts Taxable Unit Maximum Special Tax  1 32277 Acre $4,246  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 556 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  6  On each July 1, commencing on July 1, 2016 the Maximum Special Tax for Undeveloped Property shall  increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐  Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by  two percent (2.0%), whichever is greater.    D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX  Commencing with Fiscal Year 2015‐2016 and for each following Fiscal Year, the Council shall  determine the Special Tax Requirement and shall levy the Special Tax on all Assessor’s Parcels of  Taxable Property until the aggregate amount of Special Tax equals the Special Tax Requirement.   The  Special Tax shall be levied for each Fiscal Year as follows:    First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed  Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement;    Second:   If additional moneys are needed to satisfy the Special Tax Requirement after the first    step  has been completed, the Special Tax shall be levied Proportionately on each Parcel of Approved  Property at up to 100% of the Maximum Special Tax for Approved Property;    Third: If additional monies are needed to satisfy the Special Tax Requirement after the first  two steps has been completed, the Special Tax shall be levied Proportionately on all Assessor’s Parcels  of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property.    E. FUTURE ANNEXATIONS  It is anticipated that additional properties will be annexed to CFD No. 2015‐2 from time to time. As  each annexation is proposed, an analysis will be prepared to determine the annual cost for providing  Services. Based on this analysis, the property to be annexed, pursuant to California Government Code  section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone  when annexed and included in Appendix A.    F. TERM OF SPECIAL TAX  For each Fiscal Year, the Special Taxes shall be levied as long as the Services are being provided.    G. EXEMPTIONS  The City shall classify as Exempt Property within CFD No. 2015‐2, any Assessor’s Parcel in any of the  following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication,  encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility  easements making impractical their utilization for other than the purposes set forth in the easement;  (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public  uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined  by the Administrator.    H. APPEALS  Any property owner claiming that the amount or application of the Special Taxes are not correct may  file a written notice of appeal with the City not later than twelve months after having paid the first  installment of the Special Tax that is disputed. A representative(s) of CFD No. 2015‐2 shall promptly  review the appeal, and if necessary, meet with the property owner, consider written and  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 557 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  7  oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s  decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the  property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax  on that Assessor’s Parcel in the subsequent Fiscal Year(s).    I. MANNER OF COLLECTION  The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem  property taxes, provided, however, that CFD No. 2015‐2 may collect the Special Tax at a different time  or in a different manner if necessary to meet its financial obligations.  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 558 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  8  APPENDIX A    CITY OF MENIFEE  COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)  COST ESTIMATE  MAINTENANCE SERVICES ‐ The estimate breaks down the costs of providing one year's maintenance  services for Fiscal Year 2021‐22. These services are being funded by the levy of Special Tax for CFD No.  2015‐2.  TAX ZONE 36  PP17‐042– MAINTENANCE SERVICES              MAXIMUM SPECIAL TAX RATES   FOR SERVICES    Land Use   Category  Taxable   Unit  Maximum   Special Tax  Developed Acre $789  Approved Acre $789  Undeveloped Acre $789      ESCALATION OF MAXIMUM SPECIAL TAXES  On each July 1, commencing on July 1, 2022 the Maximum Special Tax shall increase by i) the percentage  increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 =  100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.         Item Description Estimated Cost  1 Street Lighting $643  2   Street Maintenance  $909     3 Drainage $491  4 Trails $564  5 Administration $750  6 Reserves $311  Total  $3,668  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 559 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  9  MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE      Annex  No.    Tax  Zone    Fiscal   Year      Tract    Land Use   Category  No. of  Taxable  Units    Taxable   Unit  Maximum   Special  Tax      Subdivider  Original 1 2015‐16 32277 Residential 359 R/U $819 Menifee Heights Inv., LLC  1 2 2016‐17 32101 Residential 197 R/U $715 Diamond Bros. Five Partner LP  2 3 2016‐17 PM 33703 Non‐Residential 1.89 Acre $2,140 Menifee Auto Care, LLC  3 4 2016‐17 LLA 13‐004 Non‐Residential 0.93 Acre $334 Halle Properties  4 5 2016‐17 PM 34318 Non‐Residential 16.35 Acre $290 Menifee Lakes Plaza, LLC  5 6 2018‐19 TR 31856 Residential 77 R/U $935 Menifee Land Dev, LLC  6 7 2017‐18 29777 Residential 173 R/U $630 TTLC Talavera, LLC  7 8 2017‐18 36788 Residential 30 R/U $713 Menifee Estates, LLC  8 9 2017‐18 36998 Non‐Residential 2.00 Acre $5,867 Foothill Arch, LLC  9 10 2017‐18 LLA 10‐003 Non‐Residential 0.60 Acre $7,772 Southern Inland Invest, LLC  10 11 2017‐18 PM 22233 Non‐Residential 1.37 Acre $883 Ryan Brothers, LLC  11 12 2017‐18 34406 Residential 663 R/U $187 CalAtlantic Group, Inc  12 13 2017‐18 36728 Non‐Residential 14.04 Acre $4,979 Stater Bros. Markets  13 14 2017‐18 LLA 12‐007 Non‐Residential 1.14 Acre $8,762 Newport Road, LP  14 15 2017‐18  POR PAR A,  LLA 10‐003 Non‐Residential 0.79 Acre $4,516 Crestview Consolidated Inc.  15 16 To Be Determined  16 17 2017‐18  Par 1 & 3 of  PM 16197 Non‐Residential 3.86 Acre $1,563 CG Menifee 1, LLC  17 18 2017‐18 28206‐3 & ‐F Residential 127 R/U $248  McKinley Mosaic, LLC &  Watt Communities at Mosaic, LLC  18 19 2017‐18 37102 Residential 21 R/U $659 Ridgemore Investment, LLC  19 20 2018‐19 29835 Residential 514 R/U $919 Underwood Inv, LLC  20 21 2019‐20 TR 32934 Residential 15 R/U $1,410 Gordon and Shelba Hanshaw  21 22 2018‐19 CUP 2016‐263 Non‐Residential 24.41 Acre $314 Romo RNVS, LLC  22 23 2018‐19 CUP 2015‐157 Non‐Residential 0.80 Acre $7,691 Cal Cruz, LLC  23 24 2018‐19 CUP 2016‐124 Non‐Residential 3.21 Acre $4,601  Palmdale Service Station, LP. and  McCall Plaza, LP.  24 25 2018‐19 PP 2016‐135 Non‐Residential 1.81 Acre $3,302 Haun Professional, LLC  25 26 2018‐19 TR 36658 Residential 756 R/U $788 Cimarron Ridge, LLC  26  ‐‐ Not Used  27 27 2019‐20 TR 36937 Residential 126 R/U $356 McLaughlin Apartments, LLC  28 28 2019‐20 TR 30812 Residential 29 R/U $836 Menifee‐La Piedra Road 29, LLC  29 29 2019‐20  TR 28786,  28791 ‐ 28794 Residential 379 R/U $583 Pacific Community Builders, Inc  30 30 2019‐20 TR 35107 Non‐Residential 2.06 Acre $2,339 Goetz Marketplace, LP  31 31 2020‐21 PM 37289 Non‐Residential 2.57 Acre $3,703 Ethanac Road Inv  32 32 2019‐20 TR 37566 Non‐Residential 5.36 Acre $1,459 PRP Menifee, LLC  33 33 2019‐20 CUP 2016‐233 Non‐Residential 4.30 Acre $1,606 Menifee Retail Center  34 34 2019‐20 PP 2015‐099 Non‐Residential 1.05 Acre $1,206 Newport Road, LP  35 35 2019‐20 TPM 37624 Non‐Residential 15.81 Acre $1,429 Heritage Square Menifee, LLC  36 36 2020‐21 PP17‐042 Non‐Residential 4.65 Acre $789 WellQuest Menifee, LLC      Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 560 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  10      ESCALATION OF MAXIMUM SPECIAL TAXES  On each July 1, commencing on July 1, 2016 the Maximum Special Tax shall increase by i) the percentage  increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 =  100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 561 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  11  APPENDIX B    CITY OF MENIFEE  COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)  DESCRIPTION OF AUTHORIZED SERVICES  The services which may be funded with proceeds of the special tax of CFD No. 2015‐2, as provided by  Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing  and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways,  public landscaping, public open spaces and other similar landscaped areas officially dedicated for public  use. These services including the following:    (a) maintenance and lighting of parks, parkways, streets, roads and open space, which  maintenance and lighting services may include, without limitation, furnishing of electrical power to street  lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance  (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks,  parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of  public signage; graffiti removal from and maintenance and repair of public structures situated on parks,  parkways, streets, roads and open space; maintenance and repair of playground or recreation program  equipment or facilities situated on any park; and    (b) maintenance and operation of water quality improvements which include storm drainage  and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration  basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include  but is not limited to the repair, removal or replacement of all or part of any of the water quality  improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum  hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and  outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance,  servicing; or both of the water quality basin improvements within flood control channel improvements;  and    (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No.  2015‐2; as well as local roads within residential subdivisions located within CFD No. 2015‐2; and any  portions adjacent to the properties within CFD No. 2015‐2; and    In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may  be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of  Apportionment.    The above services shall be limited to those provided within the boundaries of CFD No. 2015‐2 or for the  benefit of the properties within the boundaries of CFD No. 2015‐2, as the boundary is expanded from time  to time by anticipated annexations, and said services may be financed by proceeds of the special tax of  CFD No. 2015‐2 only to the extent that they are in addition to those provided in the territory of CFD No.  2015‐2 before CFD No. 2015‐2 was created.  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 562 of 828 City of Menifee  Community Facilities District No. 2015‐2 (Maintenance Services)  12  APPENDIX C    CITY OF MENIFEE  COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)  PROPOSED BOUNDARIES  Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 563 of 828 Item Title: 11.2 Annexation No. 36 to CFD 2015-2, Plot Plan 17-042, WellQuest Senior Living by WellQuest Menifee, LLCItem Page Number: 20Menifee Mayor and City Council                                                                               January 20, 2021Page 564 of 828 Item Title: 11.2 Annexation No. 36 to CFD 2015-2, Plot Plan 17-042, WellQuest Senior Living by WellQuest Menifee, LLCItem Page Number: 21Menifee Mayor and City Council                                                                               January 20, 2021Page 565 of 828 CITY OF MENIFEE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ANNEXATION NO. 36 (January 20, 2021) This ballot is for the use of the authorized representative of the following owner of land within Annexation No. 36 of the Community Facilities District No. 2015-2 (Maintenance Services) (“CFD No. 2015-2”) of the City of Menifee: Name of Landowner Number of Acres Owned Total Votes WellQuest Menifee, LLC 5.52 6 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Menifee (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2015-2, City of Menifee, County of Riverside, State of California. Please advise the City Clerk, at (951) 672-6777 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than January 6, 2021 two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on January 20, 2021 at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on January 20, 2021. Very truly yours, Sarah Manwaring City Clerk City of Menifee EXHIBIT B Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 566 of 828 TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): WellQuest Menifee, LLC Attn: Steve Sandholtz 185 S. State Street, Suite 1300 Salt Lake City, UT 84111 640-010-002 ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ANNEXATION NO. 36 AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO” WITH AN “X”: Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2015-2 (Maintenance Services) adopted by the City Council on December 16, 2020 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 36 of Community Facilities District No. 2015-2 (Maintenance Services) City of Menifee” to finance certain services as set forth in Section 5 to the Resolution (including incidental expenses) and shall an appropriation limit be established for Community Facilities District No. 2015-2 (Maintenance Services) in the amount of special taxes collected? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.         WellQuest Menifee, LLC By: Steve Sandholtz By:__________________________________ Manager     Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 567 of 828 RESOLUTION NO. 21-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE DECLARING THE RESULTS OF THE SPECIAL ELECTION HELD ON JANUARY 20, 2021 AND ORDERING THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 36) WHEREAS, the City Council (the “City Council”) of the City of Menifee (the “City”) has heretofore conducted proceedings, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), for the area proposed to be annexed to Community Facilities District No. 2015-2 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the “CFD No. 2015-2”), including conducting a public hearing pursuant to the Act; and WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for January 20, 2021, and submitting to the qualified electors of the territory proposed to be annexed to the CFD No. 2015-2 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property, as provided in the form of the special election ballot attached thereto as Exhibit B; and WHEREAS, the special election was held on January 20, 2021, and the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”) has duly canvassed the returns of the special election and has filed with the City Council a Certificate of Election Results, dated January 20, 2021, executed by the Clerk, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MENIFEE: Section 1. Recitals. The City Council finds and determines that the foregoing recitals are true and correct. Section 2. Approval of Canvass. The City Council has received, reviewed, and hereby accepts the Clerk’s Certificate of Election Results, a copy of which is attached hereto as Exhibit A, and hereby ratifies, confirms, and approves said Certificate of Election Results. Section 3. Ballot Measure. The City Council hereby finds, determines, and declares that more than two-thirds (⅔) of all the votes cast at the special election on the ballot measure were in favor of the ballot measure, the ballot measure passed, and the ballot measure was approved by the qualified electors in accordance with the Act. Section 4. Validity of Procedures. The City Council hereby finds and determines that all prior proceedings and actions taken by the City Council pursuant to the Act were and are valid and in conformity with the Act. Section 5. Annexation. The City Council hereby finds, determines, and declares that pursuant to Government Code section 53339.8, the territory proposed to be annexed is added to and part of the CFD No. 2015-2 with full legal effect, and the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the annexed territory to Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 568 of 828 2 pay the costs of the services to be provided by the CFD No. 2015-2 as specified in Resolution No. 20-985 adopted by the City Council on December 16, 2020. The boundaries of the annexed territory are shown on the map entitled, “Annexation Map No. 36 Community Facilities District No. 2015-2 (Maintenance Services)” a copy of which was recorded, on April 23, 2020, in Book 85 of Maps of Assessment and Community Facilities Districts at Page 9, in the office of the Riverside County Recorder. Section 6. Notice of Special Tax Lien. Pursuant to Government Code section 53339.8 and Streets and Highways Code sections 3114.5 and 3117.5, within fifteen (15) days of the adoption of this Resolution, the City Clerk shall cause to be filed with the County Recorder of the County of Riverside an amendment to the notice of special tax lien and a map of the amended boundaries of the CFD No. 2015-2 including the annexed territory. Section 7. Effective Date. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 20th day of January 20, 2021. ATTEST: APPROVED: Sarah A. Manwaring, City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM: Jeffrey T. Melching, City Attorney Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 569 of 828 EXHIBIT A CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ANNEXATION NO. 36 CERTIFICATE OF ELECTION RESULTS I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify: In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of Menifee (the “City”) on this same date in the proceedings of the City Council for the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot on behalf of WellQuest Menifee, LLC, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated December 10, 2020 and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed. Qualified Landowner Votes Votes Cast YES NO I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on January 20, 2021. Sarah Manwaring City Clerk City of Menifee By: (Attach completed copies of Waiver/Consent and Ballot) Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 570 of 828 1 8 4 ORDINANCE NO. 2021-___ AN ORDINANCE AMENDING ORDINANCE NO. 2015-173 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2021-2022 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF STREET LIGHTS, PARKS, PARKWAYS, STREETS, ROADS, AND OPEN SPACE, THE OPERATION AND MAINTENANCE OF STORM DRAINAGE SYSTEMS, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)(ANNEXATION NO. 36) WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on May 20, 2015, the City Council (the “City Council”) of the City of Menifee (the “City”) adopted Resolution No. 15-440 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the "CFD No. 2015-2") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services (the “Services”), which are necessary to meet increased demands placed upon the City and are described in Exhibit A attached hereto; and WHEREAS, on June 3, 2015, the City Council adopted Ordinance No. 2015-173 entitled, “An Ordinance Levying Special Taxes to be Collected During Fiscal Year 2015-16 to Pay the Annual Costs of the Maintenance and Servicing of Street Lights, Parks, Parkways, Streets, Roads, and Open Space, the Operation and Maintenance of Storm Drainage Systems, a Reserve Fund for Capital Replacement, and Administrative Expenses with Respect to City of Menifee Community Facilities District No. 2015-2 (Maintenance Services)” (“Ordinance No. 2015-173”), pursuant to which the City Council levied special taxes with the CFD No. 2015-2; and WHEREAS, on December 16, 2020, the City Council adopted Resolution No. 20-985 entitled “A Resolution of the City Council of the City of Menifee Declaring Its Intention to Annex Territory to Community Facilities District No. 2015-2 (Maintenance Services) of the City of Menifee, Adopting a Map of the Area to be Proposed to be Annexed (Annexation No. 36) and Authorizing the Levy of a Special Taxes Therein” (the “Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2015-2 and to levy special taxes within that territory to provide the Services as described in the Resolution of Intention and setting a special public hearing on the proposed annexation for January 20, 2021; and WHEREAS, notice was published as required by the Act relative to the intention of the City Council to annex certain territory to the CFD No. 2015-2, to levy special taxes therein to provide the Services, and to set the time and place of said public hearing; and WHEREAS, on January 20, 2021, at the time and place specified in said published notice, the City Council opened and held a public hearing as required by the Act relative to the annexation of territory in to the CFD No. 2015-2, the levy of the special taxes therein, and the provision of Services by the CFD No. 2015-2; and WHEREAS, at said public hearing all persons desiring to be heard on all matters pertaining to the annexation of territory to the CFD No. 2015-2, the levy of the special taxes therein, and the provision of Services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said public hearing, the City Council adopted Resolution No. 21-___ entitled “A Resolution of the City Council of the City of Menifee Calling an Election to Submit to the Qualified Electors the Question of Levying a Special Tax Within the Area Proposed to be Annexed to Community Facilities District No. 2015-2 (Maintenance Services) (Annexation No. 36)” (the “Resolution Calling the Election”) on January 20, 2021, wherein the City Council submitted the question of levying a special tax in Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:27 Menifee Mayor and City Council January 20,2021 Page 571 of 828 2 8 4 territory proposed to be annexed to the CFD No. 2015-2 at the rate and according to the method of apportionment described therein; and WHEREAS, at said special election on January 20, 2021, the qualified electors of the territory proposed to be annexed to the CFD No. 2015-2 approved said propositions as described in the Resolution Calling the Special Election by more than the two-thirds vote required by the Act; and WHEREAS, subsequent to said special election, the City Council adopted Resolution No. 21-___ entitled “A Resolution of the City Council of the City of Menifee Declaring the Results of the Special Election Held on January 20, 2021, and Ordering the Annexation of Territory to Community Facilities District No. 2015-2 (Maintenance Services) (Annexation No. 36)” wherein the City Council determined that the territory proposed to be annexed was added to the CFD No. 2015-2 (such territory being referred to herein as “Annexation No. 36”). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE, DOES ORDAIN AS FOLLOWS: Section 1.Recitals. The foregoing recitals are true and correct. Section 2.Amendment to Exhibit B of Ordinance No. 2015-173. Exhibit B of Ordinance No. 2015- 173 is hereby amended by deleting it in its entirety and replacing it with Revised Exhibit B attached hereto. Section 3.Amendment to Section 2 of Ordinance No. 2015-173. Section 2 of Ordinance No. 2015- 173 is hereby amended by deleting it in its entirety and replacing it with the following: Section 2.Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2015-16, and each Fiscal Year thereafter, on all parcels of real property within the Community Facilities District which are subject to taxation, which are identified in Revised Exhibit B attached hereto, and in the amount set forth for each such parcel in said Revised Exhibit B. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. Section 4.Future Annexations. The annexation of additional territory into the CFD No. 2015-2 was contemplated as part of the adoption of Resolution No. 15-440. The boundaries of the territory within which any property may annex to the CFD No. 2015-2 are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2015-2 (Maintenance Services) of the City of Menifee, County of Riverside, State of California,” as recorded on April 21, 2015 in Book 78 of Maps of Assessment and Community Facilities District, at Page 25, and as Document No. 2015-0159793 in the official records of the County of Riverside. Following a public hearing and the adoption of resolutions required by the Act for any additional annexations of property within said potential annexation area, Revised Exhibit B of Ordinance No. 2015-173 shall be further amended to include any additional territory annexed to the CFD No. 2015-2. The City Council hereby authorizes and directs the officers, employees, and agents of the City to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Section 4 of this Ordinance to further amend Revised Exhibit B of Ordinance No. 2015-173. Section 5.Severability. If for any reason any portion of this Ordinance is found to be invalid, or if the special taxes found inapplicable to any particular parcel within the CFD No. 2015-2, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the CFD No. 2015-2 shall not be affected. Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:28 Menifee Mayor and City Council January 20,2021 Page 572 of 828 3 8 4 Section 6.Authorization to Publish Ordinance. The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall, within fifteen (15) days of its adoption, cause it or a summary of it to be published at least once in a newspaper of general circulation published and circulated in the City and the CFD No. 2015-2. Section 7. Effective Date. This Ordinance shall take effect and shall be in force thirty (30) days after the date of its adoption, at which time Revised Exhibit B will replace Exhibit B of Ordinance No. 2015-173 and Section 2 of Ordinance No. 2015-173 will be amended as described herein. This Ordinance was introduced at a regular Council meeting held on January 20, 2021 and PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on the ___ day of ____2021. ATTEST: APPROVED: Sarah A. Manwaring, City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM: Jeffrey T. Melching, City Attorney Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:29 Menifee Mayor and City Council January 20,2021 Page 573 of 828 EXHIBIT A DESCRIPTION OF SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2015-2, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (and may include reserves for replacement) in public street right-of- ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services include the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include, but are not limited to, the repair, removal or replacement of all or part of any of the water quality improvements; fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff or appurtenant facilities; clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing, or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2015-2; as well as local roads within residential subdivisions located within CFD No. 2015- 2; and any portions adjacent to the properties within CFD No. 2015-2. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this Resolution of Intention. The above services shall be limited to those provided within the boundaries of CFD No. 2015-2 or for the benefit of the properties within the boundaries of CFD No. 2015-2, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2015-2 only to the extent that they are in addition to those provided in the territory of CFD No. 2015-2 before CFD No. 2015-2 was created. Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:30 Menifee Mayor and City Council January 20,2021 Page 574 of 828 REVISED EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2021-22 (Effective as of January 20, 2021) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Original Formation Menifee Heights Inv., LLC See Next Page 1 Rancon Diamond Brothers, LLC See Next Page 2 Menifee Auto Care, LLC 340-040-029 3 Halle Properties 336-380-073 4 Menifee Lakes Plaza, LLC See Next Page 5 Menifee Land DV 330-210-003, 004, 005 & 008 6 TTLC Talavera, LLC See Next Page 7 Menifee Estates, LLC See Next Page 8 Foothill Arch, LLC 364-030-009, -014 & -015 9 Southern Inland Investments, LLC 329-030-073 10 Ryan Brothers, LLC 336-380-021 11 CalAtlantic Group, Inc.See Next Page 12 Stater Bros. Markets 364-390-001, 002, 003, 004, 005, 006, 007, 008, 009, 010, 011, 012 & 013 13 Newport Road, LP 360-030-027 14 Arco Gas Station 329-030-075 15 To be Determined 16 Ferguson Warehouse 384-180-050 & 036 17 Mosaic See Next Page 18 Ridgemore Investment, LLC See Next Page 19 Underwood See Next Page 20 Sponseller See Next Page 21 Fortera 331-220-022, 023, 024, 025, 037 & 040 22 Cal Cruz 360-020-072 & 073 23 McCall Plaza 333-060-034 24 Haun Bldg 336-380-059 & 058 25 Cimarron See Next Page 27 McLaughlin 331-090-008 28 Boulder See Next Page 29 Mayfield See Next Page 30 Goetz 351-074-021 & 016 31 To be Determined 32 Smart & Final 336-380-071 33 RV Super Center 331-120-066 34 Shops at Newport 360-030-025 35 McCall Square 333-070-009, 044, 052 36 WellQuest Menifee, LLC 640-010-002 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:31 Menifee Mayor and City Council January 20,2021 Page 575 of 828 REVISED EXHIBIT B (cont.) COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ORIGINAL FORMATION ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 372530001 372533005 372540009 372541028 372552016 372530002 372533006 372540010 372541029 372552017 372530003 372533007 372540011 372541030 372552018 372530004 372533008 372540012 372541031 372553001 372530005 372533009 372540013 372550001 372553002 372530006 372533010 372540014 372550002 372553003 372530007 372533011 372540015 372550003 372553004 372530008 372533012 372540016 372550004 372553005 372530009 372533013 372540017 372550005 372553006 372530010 372533014 372540018 372550006 372554001 372530011 372533015 372540019 372551001 372554002 372530012 372533016 372540020 372551002 372554003 372530013 372533017 372541001 372551003 372554004 372530014 372533018 372541002 372551004 372554005 372531001 372533019 372541003 372551005 372554006 372531002 372533020 372541004 372551006 372554007 372531003 372533021 372541005 372551007 372554008 372531004 372533023 372541006 372551008 372554009 372531005 372533024 372541007 372551009 372554010 372531006 372533025 372541008 372551010 372554011 372531007 372533026 372541009 372551011 372554012 372531008 372533027 372541010 372551012 372554013 372531009 372533028 372541011 372551013 372554014 372531010 372533029 372541012 372551014 372554015 372531011 372533030 372541013 372552001 372554016 372532001 372534001 372541014 372552002 372554017 372532002 372534002 372541015 372552003 372554018 372532003 372534003 372541016 372552004 372554019 372532004 372534004 372541017 372552005 372554020 372532005 372534005 372541018 372552006 372554021 372532006 372534006 372541019 372552007 372554022 372532007 372540001 372541020 372552008 372554023 372532008 372540002 372541021 372552009 372554024 372532009 372540003 372541022 372552010 372554025 372532010 372540004 372541023 372552011 372554026 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:32 Menifee Mayor and City Council January 20,2021 Page 576 of 828 APN APN APN APN APN 372533001 372540005 372541024 372552012 372554027 372533002 372540006 372541025 372552013 372560001 372533003 372540007 372541026 372552014 372560002 372533004 372540008 372541027 372552015 372560003 372560004 372562013 372570007 372571023 372581002 372560005 372562014 372570008 372571024 372581003 372560006 372562015 372570009 372571025 372581004 372561001 372562016 372570010 372571026 372581005 372561002 372562017 372570011 372571027 372581006 372561003 372562018 372570012 372571028 372581007 372561004 372562019 372570013 372571029 372581008 372561005 372562020 372570014 372571030 372581009 372561006 372562021 372570015 372571031 372581010 372561007 372562022 372570016 372571032 372581011 372561008 372562023 372570017 372571033 372581012 372561009 372562024 372571001 372571034 372581013 372561010 372562025 372571002 372571035 372582001 372561011 372562026 372571003 372571036 372582002 372561012 372562027 372571004 372571037 372582003 372561013 372562028 372571005 372571038 372582004 372561014 372562029 372571006 372571039 372582005 372561015 372563001 372571007 372571040 372582006 372561016 372563002 372571008 372571041 372582007 372561017 372563003 372571009 372571042 372582008 372561018 372563004 372571010 372580001 372582009 372562001 372563005 372571011 372580002 372582010 372562002 372563006 372571012 372580003 372582011 372562003 372563007 372571013 372580004 372582012 372562004 372563008 372571014 372580005 372582013 372562005 372563009 372571015 372580006 372582014 372562006 372563010 372571016 372580007 372582015 372562007 372570001 372571017 372580008 372582016 372562008 372570002 372571018 372580009 372582017 372562009 372570003 372571019 372580010 372582018 372562010 372570004 372571020 372580011 372582019 372562011 372570005 372571021 372580012 372582020 372562012 372570006 372571022 372581001 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:33 Menifee Mayor and City Council January 20,2021 Page 577 of 828 ANNEXATION NO. 1 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 340580001 340580040 340590031 340602005 340603036 340580002 340580041 340590032 340602006 340603037 340580003 340580042 340590033 340602007 340603038 340580004 340580043 340591001 340602008 340603039 340580005 340580044 340591002 340603001 340603040 340580006 340581001 340591003 340603002 340603041 340580007 340581002 340591004 340603003 340603042 340580008 340581003 340591005 340603004 340603043 340580009 340581004 340591006 340603005 340610001 340580010 340590001 340591007 340603006 340610002 340580011 340590002 340591008 340603007 340610003 340580012 340590003 340591009 340603008 340610004 340580013 340590004 340591010 340603009 340610005 340580014 340590005 340591011 340603010 340610006 340580015 340590006 340591012 340603011 340610007 340580016 340590007 340591013 340603012 340610008 340580017 340590008 340591014 340603013 340610009 340580018 340590009 340591015 340603014 340610010 340580019 340590010 340591016 340603015 340610011 340580020 340590011 340591017 340603016 340610012 340580021 340590012 340591018 340603017 340610013 340580022 340590013 340591019 340603018 340610014 340580023 340590014 340591020 340603019 340610015 340580024 340590015 340591021 340603020 340610016 340580025 340590016 340591022 340603021 340610017 340580026 340590017 340600001 340603022 340610018 340580027 340590018 340600002 340603023 340610019 340580028 340590019 340600003 340603024 340610020 340580029 340590020 340601001 340603025 340610021 340580030 340590021 340601002 340603026 340610022 340580031 340590022 340601003 340603027 340610023 340580032 340590023 340601004 340603028 340610024 340580033 340590024 340601005 340603029 340610025 340580034 340590025 340601006 340603030 340610026 340580035 340590026 340601007 340603031 340610027 340580036 340590027 340602001 340603032 340610028 340580037 340590028 340602002 340603033 340610029 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:34 Menifee Mayor and City Council January 20,2021 Page 578 of 828 APN APN APN APN APN 340580038 340590029 340602003 340603034 340610030 340580039 340590030 340602004 340603035 340610031 340610032 340610033 ANNEXATION NO. 4 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 340620001 340620005 340620017 340620012 340620023 340620002 340620013 340620018 340620019 340620024 340620003 340620015 ANNEXATION NO. 6 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 331170034 331510015 331521008 331524004 331531019 331170035 331510016 331521009 331524005 331531020 331170036 331510017 331521010 331524006 331532001 331170037 331510018 331521011 331524007 331532002 331170038 331510019 331522001 331524008 331532003 331170039 331510020 331522002 331524009 331532004 331170040 331510021 331522003 331524010 331533001 331170041 331510022 331522004 331524013 331533002 331170042 331510023 331522007 331530001 331533003 331170043 331510024 331522008 331530002 331533004 331170044 331510025 331522009 331530003 331533005 331170045 331510026 331522014 331530004 331533006 331170046 331510027 331522015 331530005 331533007 331170047 331510028 331522016 331530006 331533008 331170048 331510029 331522017 331530007 331533009 331170049 331511002 331522018 331530008 331533010 331170050 331511003 331522020 331531001 331534001 331170051 331511004 331522023 331531002 331534002 331170052 331511005 331522024 331531003 331534003 331170053 331511006 331522029 331531004 331534004 331170054 331511007 331522030 331531005 331534005 331510001 331511009 331522031 331531006 331534006 331510002 331520001 331523001 331531007 331534007 331510003 331520002 331523002 331531008 331534008 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:35 Menifee Mayor and City Council January 20,2021 Page 579 of 828 APN APN APN APN APN 331510004 331520003 331523003 331531009 331534009 331510005 331520004 331523004 331531010 331534010 331510006 331520005 331523005 331531011 331534011 331510007 331520006 331523006 331531012 331534012 331510008 331521001 331523007 331531013 331534013 331510009 331521002 331523008 331531014 331534014 331510010 331521003 331523009 331531015 331534015 331510011 331521004 331523010 331531016 331534016 331510012 331521005 331524001 331531017 331534017 331510013 331521006 331524002 331531018 331534018 331510014 331521007 331524003 ANNEXATION NO. 7 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 360990001 360991002 360991008 360991014 360991020 360990002 360991003 360991009 360991015 360991021 360990003 360991004 360991010 360991016 360991022 360990004 360991005 360991011 360991017 360991023 360990005 360991006 360991012 360991018 360991024 360991001 360991007 360991013 360991019 360991025 ANNEXATION NO. 11 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 333700001 333700049 333710021 333720045 333741008 333700002 333700050 333710022 333720046 333741009 333700003 333700051 333710023 333720047 333741010 333700004 333700052 333710024 333720048 333741011 333700005 333700053 333710025 333720049 333741012 333700006 333700054 333710026 333720050 333741013 333700007 333700055 333710027 333730001 333741014 333700008 333700056 333720013 333730002 333741015 333700009 333700057 333720014 333730003 333741016 333700010 333700058 333720015 333730004 333741017 333700011 333700059 333720016 333730005 333741018 333700012 333700060 333720017 333730006 333741019 333700013 333700061 333720018 333730007 333741020 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:36 Menifee Mayor and City Council January 20,2021 Page 580 of 828 APN APN APN APN APN 333700014 333700062 333720019 333730008 333741021 333700015 333700063 333720020 333730009 333741022 333700016 333700064 333720021 333730010 333741044 333700017 333700065 333720022 333730011 333741045 333700018 333700066 333720023 333730012 333741046 333700019 333700067 333720024 333730013 333741047 333700020 333700068 333720025 333730014 333741048 333700021 333700069 333720026 333730015 333741049 333700022 333700070 333720027 333730016 333750001 333700023 333700071 333720028 333730017 333750002 333700024 333700072 333720029 333730018 333750003 333700025 333700073 333720030 333731001 333750004 333700026 333700074 333720031 333731002 333750005 333700027 333700075 333720032 333731003 333750006 333700028 333700076 333720033 333731004 333750007 333700029 333700077 333720034 333731005 333750008 333700030 333700078 333720035 333731006 333750009 333700031 333700079 333720036 333731007 333750010 333700032 333700080 333720037 333731008 333750011 333700033 333700081 333720038 333741001 333750012 333700034 333700082 333720039 333741002 333750013 333700035 333710016 333720040 333741003 333750014 333700045 333710017 333720041 333741004 333750015 333700046 333710018 333720042 333741005 333750016 333700047 333710019 333720043 333741006 333750017 333700048 333710020 333720044 333741007 333750018 333750019 333760001 333762007 333770019 333771016 333750020 333760002 333762008 333770020 333771017 333750021 333760003 333762009 333770021 333771018 333750022 333760004 333762010 333770022 333771019 333750023 333760005 333762011 333770023 333772001 333750024 333760006 333762012 333770024 333772002 333750025 333760007 333762013 333770025 333772003 333750026 333760008 333763001 333770026 333772004 333750027 333760009 333763002 333770027 333772005 333750028 333760010 333763003 333770028 333772006 333750029 333760011 333763004 333770029 333772007 333751001 333760012 333763005 333770030 333772008 333751002 333761001 333763006 333770031 333780001 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:37 Menifee Mayor and City Council January 20,2021 Page 581 of 828 APN APN APN APN APN 333751003 333761002 333763007 333770032 333780002 333751004 333761003 333763008 333770033 333780003 333751005 333761004 333763009 333770034 333780004 333751006 333761005 333763010 333770035 333780005 333751007 333761006 333763011 333770036 333780006 333751008 333761007 333763012 333770037 333780007 333751009 333761008 333763013 333770038 333780008 333751010 333761009 333763014 333770039 333780009 333751011 333761010 333770001 333770040 333781001 333751012 333761011 333770002 333770041 333781002 333751013 333761012 333770003 333770042 333781003 333751014 333761013 333770004 333771001 333781004 333751015 333761014 333770005 333771002 333781005 333751016 333761015 333770006 333771003 333781006 333751017 333761016 333770007 333771004 333781007 333751018 333761017 333770008 333771005 333781008 333751019 333761018 333770009 333771006 333781009 333751020 333761019 333770010 333771007 333781010 333751021 333761020 333770011 333771008 333781011 333751022 333761021 333770012 333771009 333781012 333751023 333762001 333770013 333771010 333781013 333751024 333762002 333770014 333771011 333781014 333751025 333762003 333770015 333771012 333781015 333751026 333762004 333770016 333771013 333782001 333751027 333762005 333770017 333771014 333782002 333751028 333762006 333770018 333771015 333782003 333782004 333792016 333794018 333800032 333803010 333782005 333792017 333794019 333800033 333803011 333782006 333792018 333794020 333800034 333803012 333782007 333792019 333794021 333800035 333803013 333782008 333792020 333794022 333800036 333804001 333782009 333792021 333794023 333801001 333804002 333782010 333793001 333794024 333801002 333804003 333782011 333793002 333794025 333801003 333804004 333782012 333793003 333800001 333801004 333804005 333782013 333793004 333800002 333801005 333804006 333782014 333793005 333800003 333801006 333804007 333782015 333793006 333800004 333801007 333804008 333782016 333793007 333800005 333802001 333804009 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:38 Menifee Mayor and City Council January 20,2021 Page 582 of 828 APN APN APN APN APN 333790001 333793008 333800006 333802002 333804010 333790002 333793009 333800007 333802003 333805001 333790003 333793010 333800008 333802004 333805002 333790004 333793011 333800009 333802005 333805003 333790005 333793012 333800010 333802006 333805004 333790006 333793013 333800011 333802007 333805005 333791001 333793014 333800012 333802008 333810001 333791002 333793015 333800013 333802009 333810002 333791003 333793016 333800014 333802010 333810003 333791004 333794001 333800015 333802011 333810004 333791005 333794002 333800016 333802012 333810005 333792001 333794003 333800017 333802013 333810006 333792002 333794004 333800018 333802014 333810007 333792003 333794005 333800019 333802015 333810008 333792004 333794006 333800020 333802016 333810009 333792005 333794007 333800021 333802017 333810010 333792006 333794008 333800022 333802018 333810011 333792007 333794009 333800023 333803001 333810012 333792008 333794010 333800024 333803002 333810013 333792009 333794011 333800025 333803003 333810014 333792010 333794012 333800026 333803004 333810015 333792011 333794013 333800027 333803005 333810016 333792012 333794014 333800028 333803006 333810017 333792013 333794015 333800029 333803007 333810018 333792014 333794016 333800030 333803008 333810019 333792015 333794017 333800031 333803009 333810020 333810021 333811007 333813007 333820019 333822006 333810022 333811008 333813008 333820020 333822007 333810023 333811009 333813009 333820021 333822008 333810024 333811010 333813010 333820022 333822009 333810025 333811011 333813011 333820023 333822010 333810026 333811012 333813012 333820024 333822011 333810027 333811013 333813013 333820025 333822012 333810028 333811014 333813014 333820026 333823001 333810029 333811015 333813015 333820027 333823002 333810030 333811016 333813016 333820028 333823003 333810031 333811017 333813017 333820029 333823004 333810032 333811018 333813018 333820030 333823005 333810033 333811019 333813019 333820031 333823006 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:39 Menifee Mayor and City Council January 20,2021 Page 583 of 828 APN APN APN APN APN 333810034 333811020 333813020 333820032 333823007 333810035 333811021 333820001 333820033 333823008 333810036 333811022 333820002 333820034 333823009 333810037 333811023 333820003 333820035 333823010 333810038 333811024 333820004 333820036 333823011 333810039 333811025 333820005 333820037 333823012 333810040 333811026 333820006 333820038 333824001 333810041 333812001 333820007 333820039 333824002 333810042 333812002 333820008 333821001 333824003 333810043 333812003 333820009 333821002 333824004 333810044 333812004 333820010 333821003 333824005 333810045 333812005 333820011 333821004 333824006 333810046 333812006 333820012 333821005 333824007 333811001 333813001 333820013 333821006 333824008 333811002 333813002 333820014 333822001 333824009 333811003 333813003 333820015 333822002 333824010 333811004 333813004 333820016 333822003 333824011 333811005 333813005 333820017 333822004 333824012 333811006 333813006 333820018 333822005 ANNEXATION NO. 17 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 372520001 372520027 372523007 372590015 372591012 372520002 372520028 372523008 372590016 372591013 372520003 372520029 372523009 372590017 372591014 372520004 372520030 372523010 372590018 372591015 372520005 372520031 372523011 372590019 372591016 372520006 372521001 372523012 372590020 372592001 372520007 372521002 372523013 372590021 372592002 372520008 372521003 372523014 372590022 372592003 372520009 372521004 372523015 372590023 372592004 372520010 372521005 372523016 372590024 372592005 372520011 372521006 372523017 372590025 372592006 372520012 372522001 372590001 372590026 372592007 372520013 372522002 372590002 372590027 372592008 372520014 372522003 372590003 372590028 372592009 372520015 372522004 372590004 372591001 372592010 372520016 372522005 372590005 372591002 372592011 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:40 Menifee Mayor and City Council January 20,2021 Page 584 of 828 372520017 372522006 372590006 372591003 372592012 372520018 372522007 372590007 372591004 372592013 372520019 372522008 372590008 372591005 372592014 372520020 372522009 372590009 372591006 372592015 372520021 372523001 372590010 372591007 372592016 372520022 372523002 372590011 372591008 372593001 372520023 372523003 372590012 372591009 372593002 372520024 372523004 372590013 372591010 372593003 372520025 372523005 372590014 372591011 372593004 372520026 372523006 ANNEXATION NO. 18 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 339153032 339153037 339153041 339153045 339153049 339153033 339153038 339153042 339153046 339153050 339153034 339153039 339153043 339153047 339153051 339153035 339153040 339153044 339153048 339153052 339153036 ANNEXATION NO. 19 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 331200002 333830007 333830025 333831004 333831022 331200003 333830008 333830026 333831005 333831023 331200026 333830009 333830027 333831006 333831024 331200027 333830010 333830028 333831007 333831025 331210017 333830011 333830029 333831008 333831026 331210028 333830012 333830030 333831009 333831027 333070029 333830013 333830031 333831010 333831028 333070030 333830014 333830032 333831011 333831029 333070031 333830015 333830033 333831012 333831030 333070032 333830016 333830034 333831013 333831031 333070037 333830017 333830035 333831014 333831032 333070054 333830018 333830036 333831015 333831033 333830001 333830019 333830037 333831016 333831034 333830002 333830020 333830038 333831017 333831035 333830003 333830021 333830039 333831018 333831036 333830004 333830022 333831001 333831019 333831037 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:41 Menifee Mayor and City Council January 20,2021 Page 585 of 828 APN APN APN APN APN 333830005 333830023 333831002 333831020 333831038 333830006 333830024 333831003 333831021 333831039 ANNEXATION NO. 20 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 360890001 360890004 360890007 360890010 360890013 360890002 360890005 360890008 360890011 360890014 360890003 360890006 360890009 360890012 360890015 ANNEXATION NO. 25 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 330220016 330220019 330230044 335070055 335430027 330220017 330230042 330230045 335070056 335430028 330220018 330230043 335070054 335070057 ANNEXATION NO. 28 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 360680028 360680034 360680040 360680046 360680052 360680029 360680035 360680041 360680047 360681005 360680030 360680036 360680042 360680048 360681006 360680031 360680037 360680043 360680049 360681007 360680032 360680038 360680044 360680050 360681008 360680033 360680039 360680045 360680051 ANNEXATION NO. 29 ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 360890016 360900016 360910007 360920016 360931001 360890017 360900017 360910008 360920017 360931002 360890018 360901001 360910009 360920018 360931003 360890019 360901002 360910010 360920019 360931004 360890020 360901003 360910011 360920020 360931005 360890021 360901004 360910012 360920021 360931006 360890022 360901005 360910013 360920022 360931007 360890023 360901006 360910014 360920023 360931008 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:42 Menifee Mayor and City Council January 20,2021 Page 586 of 828 APN APN APN APN APN 360890024 360901007 360910015 360920024 360931009 360890025 360901008 360910016 360920025 360931010 360890026 360901009 360911001 360920026 360931011 360890027 360901010 360911002 360920027 360931012 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360900009 360902011 360920009 360930012 360931033 360900010 360910001 360920010 360930013 360931034 360900011 360910002 360920011 360930014 360931035 360900012 360910003 360920012 360930015 360931036 360900013 360910004 360920013 360930016 360931037 360900014 360910005 360920014 360930017 360931038 360900015 360910006 360920015 360930018 360932001 360932002 360940015 360950006 360953002 360961016 360932003 360940016 360950007 360953003 360961017 360932004 360940017 360950008 360953004 360961018 360932005 360941001 360950009 360953005 360961019 360932006 360941002 360950010 360953006 360961020 360932007 360941003 360950011 360953007 360961021 360932008 360941004 360950012 360953008 360961022 360932009 360941005 360950013 360953009 360961023 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:43 Menifee Mayor and City Council January 20,2021 Page 587 of 828 APN APN APN APN APN 360932010 360941006 360950014 360953010 360961024 360932011 360942001 360950015 360953011 360961025 360932012 360942002 360950016 360953012 360961026 360932013 360942003 360950017 360960001 360961027 360932014 360942004 360951001 360960002 360961028 360932015 360942005 360951002 360960003 360961029 360932016 360942006 360951003 360960004 360961030 360932017 360942007 360951004 360960005 360961031 360932018 360942008 360951005 360960006 360961032 360932019 360942009 360951006 360960007 360961033 360932020 360942010 360951007 360960008 360961034 360932021 360942011 360951008 360960009 360961035 360932022 360942012 360951009 360960010 360961036 360932023 360942013 360951010 360960011 360961037 360932024 360942014 360951011 360960012 360961038 360932025 360942015 360951012 360961001 360961039 360940001 360942016 360951013 360961002 360961040 360940002 360942017 360951014 360961003 360961041 360940003 360942018 360951015 360961004 360961042 360940004 360942019 360951016 360961005 360961043 360940005 360943001 360952001 360961006 360961044 360940006 360943002 360952002 360961007 360961045 360940007 360943003 360952003 360961008 360962001 360940008 360943004 360952004 360961010 360962002 360940009 360950001 360952005 360961011 360962003 360940010 360950002 360952006 360961012 360962004 360940011 360950003 360952007 360961013 360962005 360940012 360950004 360952008 360961014 360963001 360940013 360950005 360953001 360961015 360963002 360940014 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:44 Menifee Mayor and City Council January 20,2021 Page 588 of 828 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:45 Menifee Mayor and City Council January 20,2021 Page 589 of 828 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:46 Menifee Mayor and City Council January 20,2021 Page 590 of 828 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:47 Menifee Mayor and City Council January 20,2021 Page 591 of 828 Item Title:11.2 Annexation No.36 to CFD 2015-2,Plot Plan 17-042,WellQuest Senior Living by WellQuest Menifee,LLC Item Page Number:48 Menifee Mayor and City Council January 20,2021 Page 592 of 828 CITY OF MENIFEE SUBJECT: Annexation No. 5 to CFD 2017-1 of Tract 36852, Del Oro Development by Forester Real Estate inc. MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Yolanda Macalalad, Assistant City Engineer REVIEWED BY: Yolanda Macalalad, Assistant City Engineer APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Amend the Annexation of territory located south of Holland Road, east of Hanover Lane, and west of Palomar Road, known as Del Oro (TR 36852) into City of Menifee Community Facilities District No. 2017-1 (Maintenance Services) ("CFD No. 2017-1" or "CFD") by taking the following actions: a. Hold public hearing; b. Adopt the Resolution calling the election; c. Hold a special landowner election and canvass the election; and d. Adopt the Resolution declaring results of special landowner election. 2. Introduce an Ordinance amending Ordinance No. 2017-231, levying and apportioning the special tax in CFD No. 2017-1. DISCUSSION On May 20, 2020, the City Council adopted Resolution No. 20-893, a Resolution of Intention to add Annexation Area No. 5 into CFD No. 2017-1, to authorize the levy of special tax therein and to finance certain services. On December 16, 2020, the City Council adopted Resolution No. 20-984, declaring its intent to amend Resolution No. 17-654 and adjust the special tax rates previously approved and commence the amended annexation proceedings for Tentative Tract Map 36852, also known as Annexation No. 5. The new rates removed Special Tax B services and include them with Special Tax A. The next step in the amended annexation proceedings is to hold a public hearing on January 20, 2021 to conduct an election for the landowners and to declare the results of that election. Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 593 of 828 City of Menifee Staff Report Annex. No. 5 to CFD 2017-1, Tract 36852, Del Oro Development by Forester Real Estate inc. January 20, 2021 Page 2 of 3 2 2 9 Forester Real Estate Inc (“Owner”) is the Owner of Tentative Tract Map 36852, known as Del Oro development, and the area within Annexation No. 5 is approximately 17.30 gross acres of vacant residential property within the City. The property is south of Holland Road, east of Hanover Lane, and west of Palomar Road, as shown in the attached Project Map. The proposed maintenance services will include items such as landscaping, lighting, street maintenance, street sweeping, drainage, parks and graffiti abatement. Per the Owner’s request, the City will establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation Area No. 5 to pay for those services. Annexation Area No. 5 will have a maximum annual tax of $970 per residential unit, and will be included in CFD No. 2017-1 as “Tax Zone 5.” The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. There are no maintenance services proposed to be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2017-1 Annexation No. 5. Forester Real Estate Inc has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The Owner submitted a "Consent and Waiver" form on file in the City Clerk's Office: to hold the election and declare election results; consent to the shortening of election time requirements; waive analysis and arguments; and waive all notice requirements relating to the conduct of the election immediately following the public hearing. A boundary map entitled "Annexation Map No. 5, Community Facilities District No. 2017-1 (Maintenance Services)" was previously recorded on May 28, 2020, in Book 85 of Maps of Assessment and Community Facilities Districts at Page 30, in the office of the Riverside County Recorder. Annexing the parcel into CFD No. 2017-1 will cover the costs of maintenance of certain public improvements associated with the development. STRATEGIC PLAN OBJECTIVE Safe and Attractive Community FISCAL IMPACT: The individual property owners in the CFD will be responsible for annual payments of special taxes. It is estimated, upon full completion of the development that there will be an annual collection of special tax revenues of approximately $65,969 to be used to pay for maintenance costs. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Owner. By annexing into the CFD, the costs of maintaining improvements located within the development will be Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 594 of 828 City of Menifee Staff Report Annex. No. 5 to CFD 2017-1, Tract 36852, Del Oro Development by Forester Real Estate inc. January 20, 2021 Page 3 of 3 2 2 9 financed through special taxes levied on the parcels within CFD No. 2017-1 and not through the City’s General Fund. ATTACHMENTS 1. Project Map 2. Resolution Calling for Election, including Exhibit A – Rate and Method of Apportionment and Exhibit B - Ballot 3. Resolution Declaring Election Results, including Exhibit A – Certificate of Election Results 4. Ordinance Levying Special Taxes 5. Petition Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 595 of 828 ATTACHMENT #1 PROJECT LOCATION MAP CFD NO. 2017-1 (MAINTENANCE SERVICES) - ANNEXATION NO. 5  Item Title: 11.3 Annexation No. 5 to CFD 2017-1 of Tract 36852, Del Oro Development by Forester Real Estate inc.Item Page Number: 4Menifee Mayor and City Council                                                                               January 20, 2021Page 596 of 828 RESOLUTION NO. 21-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 5) WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on December 6, 2017, the City Council (the “City Council”) of the City of Menifee (the “City”) approved Resolution No. 17-658 establishing Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the “CFD No. 2017-1”) for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services (the “Services”) which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the City Council called a special election for December 6, 2017, at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2017-1 were submitted to the qualified electors within the CFD No. 2017-1; and WHEREAS, at a special election held on December 6, 2017, more than two-thirds (⅔) of all votes cast were cast in favor of the levy of a special tax and the establishment of an appropriations limit, as determined by the City Council in Resolution No. 17-658, which was duly adopted on December 6, 2017; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on December 16, 2020 duly adopted Resolution No. 20-984 (the “Resolution of Intention”) declaring its intention to amend the special tax rates for Annexation No. 5 within CFD No. 2017-1 and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for January 20, 2021; and WHEREAS, the territory is identified in a map entitled “Annexation Map No. 5, Community Facilities District No. 2017-1 (Maintenance Services)” a copy of which was recorded, on May 28, 2020, in Book 85 of Maps of Assessment and Community Facilities Districts at Page 30, in the office of the Riverside County Recorder; and WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on January 20, 2021, not earlier than the hour of 6:00 p.m. at the City Hall located at 29844 Haun Road, Menifee, California 92586, at which hearing all interested persons were given the opportunity to appear and be heard on the proposed annexation of said territory to the CFD No. 2017-1 and the levy of special taxes within said territory proposed to be annexed. If and to the extent participation in the January 20, 2021 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Menifee (www.cityofmenifee.us), and outside Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 597 of 828 2 of City Hall at 29844 Haun Road, Menifee, California 92586. A copy of the Agenda will be made available upon request to the Menifee City Clerk's office at 951-723-3471; and; WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No. 2017-1, or by fifty percent (50%) or more of the registered voters residing within the territory proposed to be annexed, or by the owners of one- half (½) or more of the area within the CFD No. 2017-1, or by the owners of one-half (½) or more of the territory proposed to be annexed; and WHEREAS, the City Council has determined that there are fewer than twelve (12) registered voters residing in the territory proposed to be annexed to the CFD No. 2017-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2017-1 and the levying of a special tax as described in Exhibit A attached hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2017-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred with the election date set forth herein. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MENIFEE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The foregoing recitals are true and correct. Section 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention. Section 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2017-1 and the levy of the special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled. Section 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the annexation of territory to the CFD No. 2017-1 are valid and in conformity with the requirements of the Act. Section 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to the CFD No. 2017-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in the CFD No. 2017-1, will be levied annually in the CFD No. 2017-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit A hereto. Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 598 of 828 3 Section 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. Section 7. Tax Roll Preparation. The office of the Public Works Director, 29844 Haun Road, Menifee, California 92586, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. Section 8. Accountability Measures. Pursuant to Government Code section 50075.1, the City shall create a separate account into which special tax proceeds will be deposited; and the Public Works Director annually shall prepare and file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in the CFD No. 2017-1. Section 9. Special Election; Voting Procedures. The City Council hereby submits the question of levying the special tax within the territory proposed to be annexed to the qualified electors of the territory proposed to be annexed, in accordance with and pursuant to the Act. The special election shall be held on January 20, 2021, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of the territory proposed to be annexed to the CFD No. 2017-1. Because fewer than twelve registered voters reside within the territory proposed to be annexed to the CFD No. 2017-1 on December 10, 2020 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to the CFD No. 2017-1), the qualified electors shall be the landowners within the territory proposed to be annexed to the CFD No. 2017-1, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to the CFD No. 2017-1. (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for the CFD No. 2017-1 shall be consolidated, and the two propositions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to the CFD No. 2017-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit B. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on January 20, 2021. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on January 20, 2021, or when all Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 599 of 828 4 qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. Section 10. General Authorization with Respect to the Election. The officers, employees, and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. All actions heretofore taken by the officers, employees, and agents of the City that are in conformity with the purposes and intent of this Resolution are hereby ratified, confirmed, and approved in all respects. Section 11. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this Resolution and the annexation map of the boundaries of the CFD No. 2017-1 in his/her office. Section 12. Effective Date. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 20th day of January 2021 by the following vote: ATTEST: APPROVED: Sarah A. Manwaring, City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM: Jeffrey T. Melching, City Attorney Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 600 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR   COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES)  OF THE CITY OF MENIFEE  A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below)  in Community Facilities District No. 2017‐1 (Maintenance Services) (the “CFD No. 2017‐1” or “CFD”; defined  below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2018, in an  amount determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of  CFD No. 2017‐1, by applying the rate and method of apportionment set forth below.  All of the real property  in CFD No. 2017‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in  the manner provided herein.  A.DEFINITIONS “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2017‐1 including, but not limited to: 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 to the City, CFD No. 2017‐1, or any designee thereof associated with fulfilling the CFD No. 2017‐1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2017‐1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2017‐1 and third party expenses related to CFD No. 2017‐1.  Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2017‐1 for any other administrative purposes of CFD No. 2017‐1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Menifee, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the June 1 preceding the Fiscal year in which the special tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County. “Building Square Footage” or “BSF” means the floor area square footage reflected on the original EXHIBIT A Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 601 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  2  construction building permit issued for construction of a building of Non‐Residential Property and any  Building Square Footage subsequently added to a building of such Non‐Residential Property after  issuance of a building permit for expansion or renovation of such building.    “Calendar Year” means the period commencing January 1 of any year and ending the following  December 31.     “CFD” or “CFD No. 2017‐1” means the City of Menifee Community Facilities District No. 2017‐1  (Maintenance Services).    “City” means the City of Menifee.     “Contingent Services” means services permitted under the Mello‐Roos Community Facilities Act of 1982  including, without limitation, those services authorized to be funded by CFD No. 2017‐1 as set forth in  the documents adopted by the City Council at the time the CFD was formed to be provided by the City  in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’  Association fails to adequately provide such services.    “County” means the County of Riverside.    “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for  new construction has been issued on or prior to June 1 preceding the Fiscal Year in which the Special Tax  is being levied.    “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as  provided for in Section G.     “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line  adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or  recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for  which building permits may be issued without further subdivision.      “Fiscal Year” means the period from and including July 1st of any year to and including the following June  30th.    “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an  Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed  for the Assessor’s Parcel as of June 1 preceding the Fiscal Year in which the Special Tax is being levied.    “Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B  (Contingent), as applicable.    “Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special  Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in  such Fiscal Year.    “Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the  maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be  levied on such Assessor’s Parcel in such Fiscal Year.    Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 602 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  3  “Multi‐Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon  which a building or buildings comprised of attached Residential Units sharing at least one common wall  with another unit are constructed or are intended to be constructed.    “Non‐Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building  permit(s) was issued for a non‐residential use.  The Administrator shall make the determination if an  Assessor’s Parcel is Non‐Residential Property.    “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s  association established to maintain certain landscaping within a Tax Zone.    “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual  Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii)  Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same  for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special  Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped  Property.    “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by  one or more persons, as determined by the Administrator.    “Residential Property” means all Assessor’s Parcels of Taxable Property upon which Residential Units  have been constructed or are intended to be constructed or for which building permits have been or  may be issued for purposes of constructing one or more Residential Units.    “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including,  without limitation, those services authorized to be funded by CFD No. 2017‐1 as set forth in the  documents adopted by the City Council at the time the CFD was formed.     “Single Family Residential Property” or “SFR” means any Residential Property other than Multi‐Family  Residential Property on an Assessor’s Parcel.    “Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year  on each Assessor’s Parcel of Taxable Property.    “Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of  Taxable Property to fund the Special Tax A Requirement.    "Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to  pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2017‐1 in both the  current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for  maintenance services including but not limited to (i) maintenance and lighting of parks, parkways,  streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public  street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the  Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A  Requirement include funds for Bonds.  “Special Tax B (Contingent)” means the annual special tax to be levied in each Fiscal Year on each  Assessor’s Parcel of Taxable Property to fund the Special Tax B (Contingent) Requirement, if required.    Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 603 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  4  “Special Tax B (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is  unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or  otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve  for  the  costs  of  Contingent Services  as determined by the Administrator; less a credit for funds  available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator.    "Taxable Property" means all Assessor’s Parcels within CFD No. 2017‐1, which are not Exempt Property.    “Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre.  "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may  be levied pursuant to this Rate and Method of Apportionment of Special Tax.  Appendix C identifies the  Tax Zone in CFD No. 2017‐1 at formation; additional Tax Zones may be created when property is annexed  into the CFD.    "Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1.    "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final  Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for  subdivision.    “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed  Property or Approved Property.      B. ASSIGNMENT TO LAND USE CATEGORIES  For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2017‐1 shall be classified  as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of  Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed  Property and Approved Property shall be classified as either Residential Property or Non‐Residential  Property.  Residential Property shall be further classified as Single Family Residential Property or Multi‐ Family Residential Property and the number of Residential Units shall be determined by the  Administrator.    C. MAXIMUM SPECIAL TAX RATES  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Residential Property, all such Assessor’s  Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon  as specified in or shown on the building permit(s) issued or Final Map as determined by the  Administrator.  Once a single family attached or multi‐family building or buildings have been built on  an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units  contained within the building or buildings, and the Special Tax A levied against the Assessor’s Parcel  in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by  the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A  as each annexation occurs.  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s  Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map  as determined by the Administrator.  Once the Administrator determines the actual number of  Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 604 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  5  Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the  Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building  Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable  Tax Zone below or as included in Appendix A as each annexation occurs.  1.  Special Tax A  a. Developed Property  (i) Maximum Special Tax A   The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to  each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2017‐1, the  rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for  the Tax Zones annexed and included in Appendix A.  The Maximum Special Tax A for Developed  Property for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 1 below:  TABLE 1  MAXIMUM SPECIAL TAX A RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax A  1 TR 36299‐1  & PM 9504  Single Family Residential Property RU $158  Multi‐Family Residential Property RU $158  Non‐Residential Property Acre $1,714    (ii) Increase in the Maximum Special Tax A   On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Developed Property  shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los  Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal  Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances, an Assessor's Parcel of Developed Property may contain more than one Land  Use Category.  The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be  the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on  that Assessor's Parcel.  For an Assessor's Parcel that contains more than one land use, the  Acreage of such Assessor's Parcel shall be allocated to each type of property based on the  amount of Acreage designated for each land use as determined by reference to the site plan  approved for such Assessor's Parcel.  The Administrator's allocation to each type of property  shall be final.    b.  Approved Property  The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each  Tax Zone within the CFD.  When additional property is annexed into CFD No. 2017‐1, the rate and  method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone  annexed and included in Appendix A.  The Maximum Special Tax A for Approved Property for Fiscal  Year 2018‐19 within Tax Zone 1 is identified in Table 2 below:  Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 605 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  6  TABLE 2  MAXIMUM SPECIAL TAX A RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax A  1 TR 36299‐1  & PM 9504  Single Family Residential Property RU $158  Multi‐Family Residential Property RU $158  Non‐Residential Property Acre $1,714      On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Approved Property shall  increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐  Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by  two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to  each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2017‐1, the rate  and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax  Zone annexed and included in Appendix A.  The Maximum Special Tax A for Undeveloped Property  for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 3 below:  TABLE 3  MAXIMUM SPECIAL TAX A RATES  UNDEVELOPED PROPERTY    Tax Zone Tracts Taxable Unit Maximum Special Tax A  1 TR 36299‐1  & PM 9504 Acre $1,515    On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Undeveloped Property  shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐  Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by  two percent (2.0%), whichever is greater.    2. Special Tax B (Contingent)  The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to  maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the  Administrator, in each of the following circumstances:  (a) The POA files for bankruptcy;  (b) The POA is dissolved;  (c) The POA ceases to levy annual assessments for the Contingent Services; or  (d) The POA fails to provide the Contingent Services at the same level as the City provides similar  services and maintains similar improvements throughout the City and within ninety (90) days  after written notice from the City, or such longer period permitted by the City Manager, fails to  remedy the deficiency to the reasonable satisfaction of the City Council.    a.  Developed Property  Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 606 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  7     (i) Maximum Special Tax B (Contingent)   The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 4 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2017‐1, the rate and method adopted for the annexed property shall  reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in  Appendix A.  The Maximum Special Tax B (Contingent) for Fiscal Year 2018‐19 within Tax Zone 1  is identified in Table 4 below:  TABLE 4  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax B  (Contingent)  1 TR 36299‐1  & PM 9504  Single Family Residential Property RU $0  Multi‐Family Residential Property RU $0  Non‐Residential Property Acre $0      (ii) Increase in the Maximum Special Tax B (Contingent)   On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for  Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All  Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the  preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances, an Assessor's Parcel of Developed Property may contain more than one Land  Use Category.  The Maximum Special Tax B (Contingent) that can be levied on an Assessor's  Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each  Land Use Category located on that Assessor's Parcel.  For an Assessor's Parcel that contains more  than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of  property based on the amount of Acreage designated for each land use as determined by  reference to the site plan approved for such Assessor's Parcel.  The Administrator's allocation to  each type of property shall be final.    b.  Approved Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Approved Property shall be  specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2017‐ 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B  (Contingent) for the Tax Zone annexed and included in Appendix A.  The Maximum Special Tax B  (Contingent) for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 5 below:  Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 607 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  8  TABLE 5  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax B  (Contingent)  1 TR 36299‐1  & PM 9504  Single Family Residential Property RU $0  Multi‐Family Residential Property RU $0  Non‐Residential Property Acre $0      On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Approved  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los  Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year,  or ii) by two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall  be specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2017‐ 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B  (Contingent) for the Tax Zone annexed and included in Appendix A.  The Maximum Special Tax B  (Contingent) for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 6 below:  TABLE 6  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  UNDEVELOPED PROPERTY    Tax Zone Tracts Taxable Unit  Maximum Special   Tax B (Contingent)  1 TR 36299‐1  & PM 9504 Acre $0    On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Undeveloped  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los  Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or  ii) by two percent (2.0%), whichever is greater.    D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX  1.  Special Tax A  Commencing with Fiscal Year 2018‐19 and for each following Fiscal Year, the City Council shall determine  the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor’s Parcels  of Taxable Property within such Tax Zone until the aggregate amount of Special Tax A equals the Special  Tax A Requirement for such Tax Zone.  The Special Tax A shall be levied for each Fiscal Year as follows:    First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed  Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;    Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step  has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved  Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 608 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  9  Property at up to 100% of the Maximum Special Tax A for Approved Property;    Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two  steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of  Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.  2.  Special Tax B (Contingent)  Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and  for each following Fiscal Year, the City Council shall determine the Special Tax B (Contingent)  Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable  Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the  Special Tax B (Contingent) Requirement for such Tax Zone.  The Special Tax B (Contingent) shall be levied  for each Fiscal Year as follows:    First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed  Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B  (Contingent) Requirement;    Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after  the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each  Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved  Property;    Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after  the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on  all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent)  for Undeveloped Property.    E. FUTURE ANNEXATIONS  It is anticipated that additional properties will be annexed to CFD No. 2017‐1 from time to time.  As each  annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services  to such properties.  Based on this analysis, any properties to be annexed, pursuant to California  Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for  the Tax Zone when annexed and included in Appendix A.    F. DURATION OF SPECIAL TAX   For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.  For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are  being provided.    G. EXEMPTIONS    The City shall classify as Exempt Property within CFD No. 2017‐1, all Assessor’s; (i) which are owned by,  irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public  or utility easements making impractical their utilization for other than the purposes set forth in the  easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or  (iv) which are in use in the performance of a public function as determined by the Administrator.     Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 609 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  10  H. APPEALS   Any property owner claiming that the amount or application of the Special Taxes are not correct may file  a written notice of appeal with the City not later than twelve months after having paid the first  installment of the Special Tax that is disputed.  The Administrator of CFD No. 2017‐1 shall promptly  review the appeal, and if necessary, meet with the property owner, consider written and oral evidence  regarding the amount of the Special Tax, and rule on the appeal.  If the Administrator’s decision requires  that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a  cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s  Parcel in the subsequent Fiscal Year(s).       I. MANNER OF COLLECTION   The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem  property taxes, provided, however, that CFD No. 2017‐1 may collect the Special Tax at a different time  or in a different manner if necessary to meet its financial obligations.   Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 610 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  11  APPENDIX A  CITY OF MENIFEE  COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES)    COST ESTIMATE  Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance  services for Fiscal Year 2021‐22.  These services are being funded by the levy of Special Tax A for  Community Facilities District No. 2017‐1 Tax Zone 5.   TAX ZONE 5 (SERVICES)   TTM 36852  Item Description Estimated Cost  1 Landscaping $16,906   2 Lighting $6,097   3 Streets $11,293   4 Drainage $11,875   5 Parks $12,909   6 Graffiti $194   7 Reserves $3,596   8 Administration $3,099   Total  $65,969  Special Tax B Contingent Services ‐ There are no maintenance services proposed to be funded by the  levy of Special Tax B (Contingent) for Community Facilities District No. 2017‐1 Tax Zone 5.  TAX ZONE 5  FY 2020‐21 MAXIMUM SPECIAL TAX RATES  Land Use   Category  Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Developed RU $970 $0  Approved RU $970 $0  Undeveloped Acre $5,534 $0         Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 611 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  12  MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE  Tax  Zone  Fiscal  Year  Included  Tract  No. of   Taxable  Units  Land Use   Category   Taxable   Unit   Maximum   Special Tax  A   Maximum   Special Tax B   (Contingent) Subdivider  1 2018‐19 36299‐1 &  PM 9504  426  SFR RU $158 $0 Stark Menifee Land, LLC  548 MFR RU $158 $0 Stark Menifee Land, LLC &  Menifee Multifamily, LLC  27.68 NR Acre $1,714 $0 Several  2 2020‐21 TR 37576 65 SFR RU $539 $43 Meritage Homes  3 2020‐21 TR 28859 161 SFR RU $727 $0 Woodside O5S  4 2020‐21 TTM 31098 258 SFR RU $878 $0 Lennar Homes of  California, Inc.   5 2021‐22 TTM 36852 68 SFR RU $970 $0  Forester Real Estate  Group Inc.         ESCALATION OF MAXIMUM SPECIAL TAXES  On each July 1, commencing on July 1, 2019 the Maximum Special Tax shall increase by i) the  percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County  (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever  is greater.           Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 612 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  13  APPENDIX B    CITY OF MENIFEE  COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES)           DESCRIPTION OF AUTHORIZED SERVICES    The services which may be funded with proceeds of the special tax of CFD No. 2017‐1, as provided by Section  53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or  replacing landscaped areas (may include reserves for replacement) in public street right‐of‐way, public  landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These  services including the following:  (a)    maintenance and lighting of parks, parkways, streets, roads and open space, which  maintenance and lighting services may include, without limitation, furnishing of electrical power to street  lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and  standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or  adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities;  maintenance of public signage; graffiti removal from and maintenance and repair of public structures  situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or  recreation program equipment or facilities situated on any park; and    (b)  maintenance and operation of water quality improvements which include storm drainage  and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration  basins, flood control channels, fossil fuel filters, and similar facilities.  Maintenance services may include but  is not limited to the repair, removal or replacement of all or part of any of the water quality improvements,  fossil fuel filters within the public right‐of‐way including the removal of petroleum hydrocarbons and other  pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and  cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality  basin improvements within flood control channel improvements; and    (c)  public street sweeping, on the segments of the arterials within the boundaries of CFD No.  2017‐1; as well as local roads within residential subdivisions located within CFD No. 2017‐1; and any portions  adjacent to the properties within CFD No. 2017‐1; and    In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be  expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of  Apportionment.   The above services may be financed by proceeds of the special tax of CFD No. 2017‐1 only to the extent that  they are in addition to those provided in the territory of CFD No. 2017‐1 before CFD No. 2017‐1 was created  or those provided in the territory annexed to CFD No. 2017‐1 before the territory was annexed, as applicable.                Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 613 of 828 City of Menifee  Community Facilities District No. 2017‐1 (Maintenance Services)  14  APPENDIX C    CITY OF MENIFEE  COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES)  PROPOSED BOUNDARIES  Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 614 of 828 Item Title: 11.3 Annexation No. 5 to CFD 2017-1 of Tract 36852, Del Oro Development by Forester Real Estate inc.Item Page Number: 23Menifee Mayor and City Council                                                                               January 20, 2021Page 615 of 828 Item Title: 11.3 Annexation No. 5 to CFD 2017-1 of Tract 36852, Del Oro Development by Forester Real Estate inc.Item Page Number: 24Menifee Mayor and City Council                                                                               January 20, 2021Page 616 of 828 CITY OF MENIFEE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 5 (January 20, 2021) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2017-1 (Maintenance Services) (“CFD No. 2017-1”) of the City of Menifee: Name of Landowner Number of Acres Owned Total Votes Forester Real Estate Group Inc. 17.30 18 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Menifee (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2017-1, City of Menifee, County of Riverside, State of California. Please advise the City Clerk, at (951) 672-6777 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than January 6, 2021, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on January 20, 2021, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on January 20, 2021. Very truly yours, Sarah Manwaring City Clerk City of Menifee EXHIBIT B Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 617 of 828 TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): Forester Real Estate Group Inc. Attn: Daniel C. Bartok 2280 Wardlow Circle, Ste. 100 Corona, CA 92878 372-040-043, 372-040-044 CITY OF MENIFEE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO” WITH AN “X”: Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2017-1 (Maintenance Services) adopted by the City Council on December 16, 2020 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 5 of Community Facilities District No. 2017-1 (Maintenance Services) City of Menifee” to finance certain services as set forth in Section 5 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2017-1 (Maintenance Services) in the amount of special taxes collected? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on ____________, 20__.         Forester Real Estate Group Inc. Daniel C. Bartok Chief Executive Officer Signature Print Name     Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 618 of 828 1 RESOLUTION NO. 21-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE DECLARING ELECTION RESULTS OF THE SPECIAL ELECTION HELD ON JANUARY 20, 2021 AND ORDERING THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 5) WHEREAS, the City Council (the “City Council”) of the City of Menifee (the “City”) has heretofore conducted proceedings, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), for the area proposed to be annexed to Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the “CFD No. 2017-1”), including conducting a public hearing pursuant to the Act; and WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for January 20, 2021, and submitting to the qualified electors of the territory proposed to be annexed to the CFD No. 2017-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property, as provided in the form of the special election ballot attached thereto as Exhibit B; and WHEREAS, the special election was held on January 20, 2021, and the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”) has duly canvassed the returns of the special election and has filed with the City Council a Certificate of Election Results, dated January 20, 2021, executed by the Clerk, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MENIFEE: Section 1. Recitals. The City Council finds and determines that the foregoing recitals are true and correct. Section 2. Approval of Canvass. The City Council has received, reviewed, and hereby accepts the Clerk’s Certificate of Election Results, a copy of which is attached hereto as Exhibit A, and hereby ratifies, confirms, and approves said Certificate of Election Results. Section 3. Ballot Measure. The City Council hereby finds, determines, and declares that more than two-thirds (⅔) of all the votes cast at the special election on the ballot measure were in favor of the ballot measure, the ballot measure passed, and the ballot measure was approved by the qualified electors in accordance with the Act. Section 4. Validity of Procedures. The City Council hereby finds and determines that all prior proceedings and actions taken by the City Council pursuant to the Act were and are valid and in conformity with the Act. Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:27 Menifee Mayor and City Council January 20,2021 Page 619 of 828 2 Section 5. Annexation. The City Council hereby finds, determines, and declares that pursuant to Government Code section 53339.8, the territory proposed to be annexed is added to and part of the CFD No. 2017-1 with full legal effect, and the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the annexed territory to pay the costs of the services to be provided by the CFD No. 2017-1 as specified in Resolution No. 20-984 adopted by the City Council on December 16, 2020. The boundaries of the annexed territory are shown on the map entitled, “Annexation Map No. 5 Community Facilities District No. 2017-1 (Maintenance Services)” a copy of which was recorded, on May 28, 2020, in Book 85 of Maps of Assessment and Community Facilities Districts at Page 30, in the office of the Riverside County Recorder. Section 6. Notice of Special Tax Lien. Pursuant to Government Code section 53339.8 and Streets and Highways Code sections 3114.5 and 3117.5, within fifteen (15) days of the adoption of this Resolution, the City Clerk shall cause to be filed with the County Recorder of the County of Riverside an amendment to the notice of special tax lien and a map of the amended boundaries of the CFD No. 2017-1 including the annexed territory. Section 7. Effective Date. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 20th day of January. ATTEST: APPROVED: Sarah A. Manwaring, City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM: Jeffrey T. Melching, City Attorney Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:28 Menifee Mayor and City Council January 20,2021 Page 620 of 828 EXHBIT A CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 5 CERTIFICATE OF ELECTION RESULTS I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify: In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of Menifee (the “City”) on this same date in the proceedings of the City Council for the above-entitled community facilities district, I personally received (a) signed and dated waiver and consent forms and (b) signed, dated and marked election ballots on behalf of the property owners, the entities named as the sole landowners of the lands within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated December 10, 2020 and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed. Qualified Landowner Votes Votes Cast YES NO I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on January 20, 2021. Sarah Manwaring City Clerk City of Menifee By: (Attach completed copies of Waiver/Consent and Ballot) Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:29 Menifee Mayor and City Council January 20,2021 Page 621 of 828 1 6 4 ORDINANCE NO. 2021-___ AN ORDINANCE AMENDING ORDINANCE NO. 2017-231 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2021-22 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF STREET LIGHTS, PARKS, PARKWAYS, STREETS, ROADS, AND OPEN SPACE, THE OPERATION AND MAINTENANCE OF STORM DRAINAGE SYSTEMS, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 5) WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on December 6, 2017, the City Council (the “City Council”) of the City of Menifee (the “City”) adopted Resolution No. 17- 658 establishing Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the "CFD No. 2017-1") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services (the “Services”), which are necessary to meet increased demands placed upon the City and are described in Exhibit A attached hereto; and WHEREAS, on December 20, 2017, the City Council adopted Ordinance No. 2017-231 entitled, “An Ordinance Levying Special Taxes to be Collected During Fiscal Year 2018-19 to Pay the Annual Costs of the Maintenance and Servicing of Street Lights, Parks, Parkways, Streets, Roads, and Open Space, the Operation and Maintenance of Storm Drainage Systems, a Reserve Fund for Capital Replacement, and Administrative Expenses with Respect to City of Menifee Community Facilities District No. 2017-1 (Maintenance Services)” (“Ordinance No. 2017-231”), pursuant to which the City Council levied special taxes with the CFD No. 2017-1; and WHEREAS, on December 16, 2020, the City Council adopted Resolution No. 20-984 entitled “A Resolution of the City Council of the City of Menifee Declaring Its Intention to Annex Territory to Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, Adopting a Map of the Area to be Proposed to be Annexed (Annexation No. 5) and Authorizing the Levy of a Special Taxes Therein” (the “Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2017-1 and to levy special taxes within that territory to provide the Services as described in the Resolution of Intention and setting a special public hearing on the proposed annexation for January 20, 2021; and WHEREAS, notice was published as required by the Act relative to the intention of the City Council to annex certain territory to the CFD No. 2017-1, to levy special taxes therein to provide the Services, and to set the time and place of said public hearing; and WHEREAS, on January 20, 2021, at the time and place specified in said published notice, the City Council opened and held a public hearing as required by the Act relative to the annexation of territory in to the CFD No. 2017-1, the levy of the special taxes therein, and the provision of Services by the CFD No. 2017-1; and WHEREAS, at said public hearing all persons desiring to be heard on all matters pertaining to the annexation of territory to the CFD No. 2017-1, the levy of the special taxes therein, and the provision of Services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said public hearing, the City Council adopted Resolution No. 21-___ entitled “A Resolution of the City Council of the City of Menifee Calling an Election to Submit to the Qualified Electors the Question of Levying a Special Tax Within the Area Proposed to be Annexed to Community Facilities District No. 2017-1 (Maintenance Services) (Annexation No. 5)” (the “Resolution Calling the Election”) on January 20, 2021, wherein the City Council submitted the question of levying a special tax in Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:30 Menifee Mayor and City Council January 20,2021 Page 622 of 828 2 6 4 territory proposed to be annexed to the CFD No. 2017-1 at the rate and according to the method of apportionment described therein; and WHEREAS, at said special election on January 20, 2021, the qualified electors of the territory proposed to be annexed to the CFD No. 2017-1 approved said propositions as described in the Resolution Calling the Special Election by more than the two-thirds vote required by the Act; and WHEREAS, subsequent to said special election, the City Council adopted Resolution No. 21-___ entitled “A Resolution of the City Council of the City of Menifee Declaring the Results of the Special Election Held on January 20, 2021, and Ordering the Annexation of Territory to Community Facilities District No. 2017-1 (Maintenance Services) (Annexation No. 5)” wherein the City Council determined that the territory proposed to be annexed was added to the CFD No. 2017-1 (such territory being referred to herein as “Annexation No. 5”). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE, DOES ORDAIN AS FOLLOWS: Section 1.Recitals. The foregoing recitals are true and correct. Section 2.Amendment to Exhibit B of Ordinance No. 2017-231. Exhibit B of Ordinance No. 2017- 231 is hereby amended by deleting it in its entirety and replacing it with Revised Exhibit B attached hereto. Section 3.Amendment to Section 2 of Ordinance No. 2017-231. Section 2 of Ordinance No. 2017- 231 is hereby amended by deleting it in its entirety and replacing it with the following: Section 2.Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2021-22, and each Fiscal Year thereafter, on all parcels of real property within the Community Facilities District which are subject to taxation, which are identified in Revised Exhibit B attached hereto, and in the amount set forth for each such parcel in said Revised Exhibit B. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. Section 4.Future Annexations. The annexation of additional territory into the CFD No. 2017-1 was contemplated as part of the adoption of Resolution No. 17-654. The boundaries of the territory within which any property may annex to the CFD No. 2017-1 are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California,” as recorded on November 7, 2017 in Book 81 of Maps of Assessment and Community Facilities District, at Page 70, and as Document No. 2017-0465707 in the official records of the County of Riverside. Following a public hearing and the adoption of resolutions required by the Act for any additional annexations of property within said potential annexation area, Revised Exhibit B of Ordinance No. 2017-231 shall be further amended to include any additional territory annexed to the CFD No. 2017-1. The City Council hereby authorizes and directs the officers, employees, and agents of the City to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Section 4 of this Ordinance to further amend Revised Exhibit B of Ordinance No. 2017-231. Section 5.Severability. If for any reason any portion of this Ordinance is found to be invalid, or if the special taxes found inapplicable to any particular parcel within the CFD No. 2017-1, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the CFD No. 2017-1 shall not be affected. Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:31 Menifee Mayor and City Council January 20,2021 Page 623 of 828 3 6 4 Section 6.Authorization to Publish Ordinance. The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall, within fifteen (15) days of its adoption, cause it or a summary of it to be published at least once in a newspaper of general circulation published and circulated in the City and the CFD No. 2017-1. Section 7. Effective Date. This Ordinance shall take effect and shall be in force thirty (30) days after the date of its adoption, at which time Revised Exhibit B will replace Exhibit B of Ordinance No. 2017-231 and Section 2 of Ordinance No. 2017-231 will be amended as described herein. This Ordinance was introduced at a regular Council meeting held on January 20, 2021 and PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on ___ day of ______ 2021. ATTEST: APPROVED: Sarah A. Manwaring, City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM: Jeffrey T. Melching, City Attorney Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:32 Menifee Mayor and City Council January 20,2021 Page 624 of 828 EXHIBIT A DESCRIPTION OF SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2017-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (and may include reserves for replacement) in public street right-of- ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services include the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include, but are not limited to, the repair, removal or replacement of all or part of any of the water quality improvements; fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff or appurtenant facilities; clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing, or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017-1; as well as local roads within residential subdivisions located within CFD No. 2017- 1; and any portions adjacent to the properties within CFD No. 2017-1. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this Resolution of Intention. The above services shall be limited to those provided within the boundaries of CFD No. 2017-1 or for the benefit of the properties within the boundaries of CFD No. 2017-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2017-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017-1 before CFD No. 2017-1 was created. Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:33 Menifee Mayor and City Council January 20,2021 Page 625 of 828 REVISED EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2021-22 (Effective as of January 20, 2021) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Stark Menifee Land, LLC Stark Menifee Land, LLC & Menifee Multifamily, LLC Original Formation Several See Next Page 1 MLC Holdings 360-210-001 2 Woodside O5S See Next Page 3 To Be Determined 4 Lennar Homes of California, Inc.See Next Page 5 Forester Real Estate Group Inc.372-040-043, -044 Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:34 Menifee Mayor and City Council January 20,2021 Page 626 of 828 REVISED EXHIBIT B (cont.) COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ORIGINAL FORMATION ASSESSOR'S PARCEL NUMBERS APN APN APN APN APN 360850024 360861031 360862008 360862050 360870030 360850029 360861032 360862009 360862051 360870031 360850030 360861033 360862010 360862052 360870032 360850031 360861034 360862011 360862053 360870033 360850032 360861035 360862012 360862054 360870034 360860001 360861036 360862013 360862055 360870035 360860017 360861038 360862014 360862056 360870036 360860026 360861039 360862016 360862057 360870037 360860027 360861040 360862017 360862058 360870038 360860028 360861041 360862018 360862059 360870039 360860041 360861042 360862019 360870001 360870040 360861001 360861043 360862020 360870002 360870041 360861002 360861044 360862021 360870003 360870042 360861003 360861045 360862022 360870004 360870043 360861004 360861046 360862023 360870005 360870044 360861005 360861047 360862024 360870006 360870045 360861006 360861048 360862025 360870007 360870046 360861007 360861049 360862026 360870008 360870047 360861008 360861050 360862027 360870009 360870048 360861009 360861051 360862028 360870010 360870049 360861010 360861053 360862029 360870011 360870050 360861012 360861054 360862031 360870012 360870051 360861013 360861055 360862032 360870013 360870052 360861014 360861056 360862033 360870014 360870053 360861015 360861057 360862034 360870015 360870054 360861016 360861058 360862035 360870016 360870055 360861017 360861059 360862036 360870017 360870056 360861018 360861060 360862037 360870018 360870057 360861019 360861061 360862038 360870019 360870058 360861020 360861062 360862039 360870020 360870059 360861021 360861063 360862040 360870021 360870060 360861022 360861064 360862041 360870022 360870061 360861023 360862001 360862042 360870023 360870062 360861025 360862002 360862043 360870024 360870063 360861026 360862003 360862044 360870025 360870064 360861027 360862004 360862046 360870026 360870065 360861028 360862005 360862047 360870027 360870066 360861029 360862006 360862048 360870028 360880001 360861030 360862007 360862049 360870029 360880002 360880003 360880042 360971003 360972002 360980014 360880004 360880043 360971004 360972003 360980015 360880005 360880044 360971005 360972004 360980016 360880006 360880045 360971006 360972005 360980017 360880007 360880046 360971007 360972006 360980018 360880008 360880047 360971008 360973001 360980019 Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:35 Menifee Mayor and City Council January 20,2021 Page 627 of 828 APN APN APN APN APN 360880009 360880048 360971009 360973002 360980020 360880010 360880049 360971010 360973003 360980021 360880011 360880050 360971011 360973004 360980022 360880012 360880051 360971012 360973005 360980023 360880013 360880052 360971013 360973006 360980024 360880014 360880053 360971014 360973007 360980025 360880015 360880054 360971015 360973008 360980026 360880016 360880055 360971016 360973009 360980027 360880017 360880056 360971017 360973010 360980028 360880018 360880057 360971018 360973011 360980029 360880019 360880058 360971019 360973012 360980030 360880020 360880059 360971020 360974001 360980031 360880021 360970001 360971021 360974002 360980032 360880022 360970002 360971022 360974003 360980033 360880023 360970003 360971023 360974004 360980034 360880024 360970004 360971024 360974005 360980035 360880025 360970005 360971025 360974006 360980036 360880026 360970006 360971026 360974007 360980037 360880027 360970007 360971027 360974008 360980038 360880028 360970008 360971028 360974009 360981001 360880029 360970009 360971029 360980001 360981002 360880030 360970010 360971030 360980002 360981003 360880031 360970011 360971031 360980003 360981004 360880032 360970012 360971032 360980004 360982001 360880033 360970013 360971033 360980005 360982002 360880034 360970014 360971034 360980006 360982003 360880035 360970015 360971035 360980007 360982004 360880036 360970016 360971036 360980008 360982005 360880037 360970017 360971037 360980009 360982006 360880038 360970018 360971038 360980010 360982007 360880039 360970019 360971039 360980011 360982008 360880040 360971001 360971040 360980012 360982009 360880041 360971002 360972001 360980013 360982010 360982011 364411001 364420019 364422018 364430013 360982012 364411002 364420020 364422019 364430014 360983001 364411003 364420021 364422020 364430015 360983002 364411004 364420022 364422021 364430016 360983003 364411005 364420023 364422022 364431001 360983004 364411006 364420024 364423001 364431002 360983005 364411007 364421001 364423002 364431003 360983006 364411008 364421002 364423003 364431004 360983007 364411009 364421003 364423004 364431005 360983008 364411010 364421004 364423005 364431006 360983009 364411011 364421005 364423006 364431007 360983010 364411012 364421006 364423007 364431008 360983011 364411013 364421007 364423008 364431009 360983012 364411014 364421008 364423009 364431010 364410001 364411015 364421009 364423010 364431011 364410002 364411016 364421010 364423011 364431012 364410003 364411017 364421011 364424001 364431013 364410004 364411018 364422001 364424002 364431014 Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:36 Menifee Mayor and City Council January 20,2021 Page 628 of 828 APN APN APN APN APN 364410005 364420003 364422002 364424003 364431015 364410006 364420004 364422003 364424004 364431016 364410007 364420005 364422004 364424005 364431017 364410008 364420006 364422005 364424006 364432001 364410009 364420007 364422006 364430001 364432002 364410010 364420008 364422007 364430002 364432003 364410011 364420009 364422008 364430003 364432004 364410012 364420010 364422009 364430004 364432005 364410013 364420011 364422010 364430005 364432006 364410014 364420012 364422011 364430006 364432007 364410015 364420013 364422012 364430007 364432008 364410016 364420014 364422013 364430008 364433001 364410017 364420015 364422014 364430009 364433002 364410018 364420016 364422015 364430010 364433003 364410019 364420017 364422016 364430011 364433004 364410020 364420018 364422017 364430012 ANNEXATION NO. 2 ASSESSOR'S PARCEL NUMBERS Assessor's Parcel Numbers 339020039 339362020 339362021 339362022 339362023 339362024 339362025 339362026 339362027 339500001 339500002 339500003 339500004 339500005 339500006 339500007 339500008 339500009 339500010 339500011 339500012 339500013 339500014 339500015 339500016 339500017 339500018 339500019 339500020 339500021 339500022 339500023 339500024 339500025 339500026 339500027 339500028 339501001 339501002 339501003 339501004 339501005 339502001 339502002 339502003 339502004 339502005 339502006 339510001 339510002 339510003 339510004 339510005 339510006 339510007 339510008 339510009 339510010 339510011 339510012 339511001 339511002 339511003 339511004 339511005 339511006 339511007 339511008 339511009 339511010 339511011 339511012 339511013 339511014 339511015 339511016 339511017 339511018 339511019 339511020 339511021 339511022 339511023 339511024 339511025 339511026 339511027 339511028 339511029 339511030 339511031 339512001 339512002 339512003 339512004 339512005 339512006 339512007 339512008 339512009 339512010 339512011 339512012 339512013 339512014 339520001 339520002 339520003 339520004 339520005 339520006 339520007 339520008 339520009 339520010 339520011 339520012 339520013 339520014 339520015 339520016 339520017 339520018 339520019 339521001 339521002 339521003 339521004 339521005 339521006 339521007 339521008 339521009 339521010 339521011 339521012 339522001 339522002 339522003 339522004 339522005 339522006 339522007 339522008 339522009 339522010 339522011 339522012 339522013 339522014 339522015 339522016 339522017 339522018 339522019 339522020 339522021 339522022 339522023 339522024 339522025 339522026 339522027 339522028 339522029 ANNEXATION NO. 4 ASSESSOR'S PARCEL NUMBERS Assessor's Parcel Numbers Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:37 Menifee Mayor and City Council January 20,2021 Page 629 of 828 333070069 333070070 333070071 333070075 333070080 333070081 333070082 Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:38 Menifee Mayor and City Council January 20,2021 Page 630 of 828 PETITION TO THE CITY COUNCIL OF THE CITY OF MENIFEE REQUESTING ANNEXING TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) OF PROPERTY WITHIN THE CITY OF MENIFEE AND A WAIVER WITH RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY FACILITIES DISTRICT 1.The undersigned requests that the City Council of the City of Menifee, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), to annex territory into Community Facilities District No. 2017-1 (Maintenance Services) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the Community Facilities District. 2.The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep the landscape lighting, street lighting, traffic signals, flood control facilities, ground cover, shrubs, plants and trees, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition. 3.The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District described in Exhibit A hereto and as shown on the map Exhibit B hereto. 4.The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed annexation into Community Facilities District No. 2017-1. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on annexing territory into Community Facilities District No. 2017-1 or at the next available meeting. 5.Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code. 6.The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2017-1 of the portion of the incorporated Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:39 Menifee Mayor and City Council January 20,2021 Page 631 of 828 area of the City of Menifee or the special election therein shall be invalidated or affected by any such irregularity, error, mistake or departure. IN WITNESS WHEREOF, I hereunto set my hand this 6th day of January , 201.L. (USA) R1 ATE GROUP INC. y: WVJ c me:LAUREN ADA v Tille: INVESTMENT DIRECTOR OWNER'S PROPERTY: TRACT MAP OR PARCEL MAP NO. or PROJECT NO. _________ _ OWNER'S MAILING ADDRESS: 2221 E Lamar Blvd., Suite 790 Arlington, TX 76006 FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF MENIFEE THIS DAY OF __ -' 20_. City Clerk of the City Council of the City of Menifee Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:40 Menifee Mayor and City Council January 20,2021 Page 632 of 828 EXHIBIT A: LEGAL DESCRIPTION TFIE LAND REFERRI]D TO HE,REIN BE.LOW IS SITUATED IN THE CIT'Y OF MENIFEE, IN THE COLNTY OF RIVERSIDE,. STATE OF CALIFORNIA. AND IS DESCzuBED AS FOLLOWS: PARCET-S 3 AND 4. INCLUSIVE, TOGETI{IrR WITII LL,T'-fE,RlrD LOTS B, E. I-'. H. I AND J, AS SHOWN BY PARCEL MAP 13757 ON I-'ILE IN BOOK 93. PAGE 34 OF PARCEL MAPS. IN THE COUNTY OF RIVERSIDE. STATE OF CALIFOR}iIA. APN( S): 372-040-01:t-2 AND 372-040-043-1 Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:41 Menifee Mayor and City Council January 20,2021 Page 633 of 828 EXHIBIT B: TRACT/PARCEL/SUBDIVISION MAP Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:42 Menifee Mayor and City Council January 20,2021 Page 634 of 828 Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:43 Menifee Mayor and City Council January 20,2021 Page 635 of 828 Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:44 Menifee Mayor and City Council January 20,2021 Page 636 of 828 Acknowledgment Regarding Property to be Included into Community Facilities District No. 2017-1 (Maintenance Services) The developer/property owner of (Tract No./ Assessor's Parcel No.) _______ _ hereby acknowledges that: If the landscaping, drainage, lighting and eligible public improvements within the Community Facilities District No. 2017-1 (Maintenance Services) the maintenance areas of (Assessor's Parcel Nos.) _________ , which is to be included in the Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee are completed prior to the levy and collection of special taxes upon property within said tract for the maintenance of such landscape and improvements, the developer/property owner will continue to be responsible for and will maintain the landscaping, drainage, lighting, and eligible public improvements within such maintenance areas at its sole expense, and the City will not assume responsibility for the maintenance of such landscaping, drainage, lighting and eligible public improvements until such time as the City is able to collect such special taxes to pay the costs of the maintenance of such landscaping, drainage, lighting, and eligible public improvements. DATED: OWNER(s): Forestar (USA) Real Estate Group Inc. 1/6/2021 Investment Director (Title) (Print Name) (Signature) (Title) Item Title:11.3 Annexation No.5 to CFD 2017-1 of Tract 36852,Del Oro Development by Forester Real Estate inc. Item Page Number:45 Menifee Mayor and City Council January 20,2021 Page 637 of 828 CITY OF MENIFEE SUBJECT: Comprehensive Annual Financial Report (CAFR) for Fiscal Year End June 30, 2020 MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Wendy Preece, Deputy Finance Director REVIEWED BY: Rochelle Clayton, Deputy City Manager APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Receive and file the Comprehensive Annual Financial Report (CAFR), and other audit reports, for the Fiscal Year End June 30, 2020. DISCUSSION Pursuant to the California Government Code, the Finance Department shall present to City Council the City’s annual financial statement and financial audit for fiscal year ending June 30, 2020. The statements are referred to, collectively, as a Comprehensive Annual Financial Report (CAFR). The format and content requirements for CAFR’s are set forth in guidelines developed by the Government Finance Officers Associations of the United States and Canada (GFOA) and the California Society of Municipal Finance Officers (CSMFO). The CAFR is divided into three major sections: the introductory section, the financial section, and the statistical section. The introductory section includes the letter of transmittal, a directory of City officials in office as of the report date and an organization chart. The financial section includes the independent auditors’ report, management’s discussion and analysis (MD&A), and the financial statements, including notes to the financial statements. The statistical section includes financial trend information as well as, demographic information about the City. The financial statements were audited by the independent public accounting firm of Rogers, Anderson, Malody & Scott, LLP Certified Public Accountants, whose unmodified opinion is included within the financial section of the report. An unmodified opinion indicates that the financial statements present fairly the financial position of the City of Menifee as of June 30, 2020, and that the results of operations are in accordance with generally accepted accounting principles. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 638 of 828 City of Menifee Staff Report CAFR for Fiscal Year End June 30, 2020 January 20, 2021 Page 2 of 2 2 9 7 The audited financial statements are for the City of Menifee, which is the primary government. The City does not have any component units, such as a Redevelopment Agency. As part of the audit, the audit firm also reviewed and performed tests of the City’s internal accounting control procedures to determine if there are any material weaknesses or instances of non-compliance. Based on the audit, no material weaknesses were noted. The two other reports that are also included in the packet that support these findings are: 1) Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and 2) Communication with those Charged with Governance (also referred to as the SAS-114 letter) The City’s CAFR for the fiscal year end June 30, 2020 is attached to this staff report and is also available for review in the City Clerk’s Office or Finance Department. In addition, the CAFR will be distributed to the City Council, various federal and state government agencies, rating agencies and financial institutions, and will be made available on the City’s website for interested citizens. STRATEGIC PLAN OBJECTIVE Regular City Business FISCAL IMPACT: There is no fiscal impact associated with the recommended action. ATTACHMENTS 1. June 30, 2020 Comprehensive Annual Financial Report (CAFR) 2. Independent Accountant's Report on Agreed-Upon Procedures Applied to Appropriation Limits 3. Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4. Communication with those Charged with Governance (SAS-114 letter) Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 639 of 828         COMPREHENSIVE ANNUAL FINANCIAL REPORT   FISCAL YEAR ENDED JUNE 30, 2020      CITY OF MENIFEE CALIFORNIA   Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 640 of 828     CITY OF MENIFEE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 Prepared by: Finance Department Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 641 of 828     CITY OF MENIFEE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................ i Listing of Elected Officials ..................................................................................................................... vi Organizational Chart ............................................................................................................................ vii GFOA Award of Financial Reporting Achievement ............................................................................... ix FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT ................................................................................................ 1 MANAGEMENT’S DISCUSSION AND ANALYSIS .............................................................................. 4 BASIC FINANCIAL STATEMENTS Government - Wide Financial Statements Statement of Net Position .......................................................................................................... 13 Statement of Activities ............................................................................................................... 14 Fund Financial Statements Balance Sheet - Governmental Funds ...................................................................................... 15 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................................... 16 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ................................................................................................................. 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................................................ 18 Statement of Fiduciary Net Position - Fiduciary Funds ............................................................. 19 Statement of Changes in Fiduciary Net Position - Fiduciary Funds .......................................... 20 Notes to Financial Statements ....................................................................................................... 21 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 642 of 828     CITY OF MENIFEE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS Page Number REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule - General Fund .......................................................................... 54 Budgetary Comparison Schedule - Development Impact Fees ...................................................... 55 Schedule of the City’s Proportionate Share of the Pension Plan’s Net Pension Liability and Related Ratios as of the Measurement Date ......................................................................... 56 Schedule of the Pension Plan’s Contributions .............................................................................. 57 Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................... 58 Schedule of OPEB Contributions .................................................................................................... 59 Notes to the Required Supplementary Information ......................................................................... 60 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Non-major Governmental Funds Descriptions ................................................................................ 61 Combining Balance Sheet - Non-major Governmental Funds ....................................................... 64 Combining Statement of Revenues, Expenditures and Changes ... in Fund Balances - Non-major Governmental Funds ................................................................ 68 Budgetary Comparison Schedules - Special Revenue Funds Gas Tax ..................................................................................................................................... 72 SB 1 ........................................................................................................................................... 73 Measure A ................................................................................................................................. 74 Air Quality Management District ................................................................................................ 75 Grants ........................................................................................................................................ 76 Landscape and Lighting Maintenance District .......................................................................... 77 Community Facilities District - Audie Murphy Ranch ................................................................ 78 Community Facilities District - Hidden Hills ............................................................................... 79 Community Facilities District - 2014-1 Town Center ................................................................. 80 TUMF Fees ................................................................................................................................. 81 Community Facilities District - 2014-2 Commerce Point ............................................................ 82 Community Facilities District - 2015-2 Citywide ......................................................................... 83 Community Facilities District - 2017-1 Maintenance Services ................................................... 84 Public Education and Governmental Access ............................................................................. 85 County Service Areas (CSA) ...................................................................................................... 86 Budgetary Comparison Schedule - Debt Service Fund Debt Service .............................................................................................................................. 87 Budgetary Comparison Schedule - Capital Projects Fund Capital Projects Fund ................................................................................................................ 88 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 643 of 828     CITY OF MENIFEE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS Page Number Fiduciary Fund - Agency Fund Statement of Changes in Assets and Liabilities ....................................................................... 89 STATISTICAL SECTION Statistical Section Descriptions ................................................................................................. 90 Net Position ............................................................................................................................... 91 Changes in Net Position ............................................................................................................ 93 Fund Balances of Governmental Funds .................................................................................... 95 Changes in Fund Balances of Governmental Funds ................................................................ 97 Major Revenues by Source - Governmental Funds .................................................................. 99 Assessed Value and Estimated Actual Value of Taxable Property ......................................... 100 Assessed Value and Estimated Actual Value of Taxable Property by Use Category ............. 101 Direct and Overlapping Property Tax Rates ........................................................................... 102 Principal Property Tax Payers ................................................................................................. 103 Property Tax Levies and Collections ....................................................................................... 104 Ratio of Outstanding Debt by Type ......................................................................................... 105 Ratio of General Bonded Debt Outstanding ............................................................................ 106 Direct and Overlapping Bonded Debt ..................................................................................... 107 Legal Debt Margin Information .................................. ..... ........................................................ 108 Demographic and Economic Statistics .................................................................................... 109 Principal Employers ................................................................................................................. 110 Full and Part-time City Employees by Program ...................................................................... 111 Capital Asset Statistics by Function/Program ......................................................................... 112 Operating Indicators by Function/Program ............................................................................. 113 Miscellaneous Statistics .......................................................................................................... 114 Taxable Sales by Category ..................................................................................................... 115 Top 25 Sales Tax Producers ................................................................................................... 116 Measure DD 1% Sales Tax – Revenues and Expenditures History …………………………... 117 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 644 of 828     INTRODUCTORY SECTION Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 645 of 828           December 15, 2020 Honorable Mayor, Members of the City Council & Citizens of the City of Menifee, California It is our pleasure to submit the Comprehensive Annual Financial Report (CAFR) for the City of Menifee (City) for the fiscal year ended June 30, 2020. The City annually issues a report on its financial position and activity, audited by an independent firm of certified public accountants. The City’s Finance Department prepared this report in accordance with generally accepted accounting principles (GAAP), as set forth by the Governmental Accounting Standards Board (GASB) and other sources. This CAFR also conforms to GASB Statement No. 34 financial report standards, providing the reader a dual-perspective financial report. The report contains a citywide view of all governmental activities, as well as a focus on the financial position and operating results of the City’s major funds. Responsibility for the accuracy of the data, and the completeness and fairness of the presentations including disclosures, rests with the City. To provide a reasonable basis for making these presentations, management has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the presentation of the City’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. Also, all disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. Rogers, Anderson, Malody & Scott, LLP, Certified Public Accountants, have issued unmodified opinions on the City of Menifee’s financial statements for the year ended June 30, 2020. The independent auditor’s report is located at the front of the financial section of this report. Generally accepted accounting principles requires that management provide a narrative introduction overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with the MD&A which can be found immediately following the report of the independent auditors. -i-  Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 646 of 828   -ii- Profile of the City of Menifee The City of Menifee is located approximately 80 miles southeast of Los Angeles in the southwestern portion of Riverside County. The City incorporated on October 1, 2008 as a general law City. The City has slightly more than 97,000 residents and covers an area of over 46 square miles. As a general law city, Menifee is governed by a five-member City Council operating under the Council/Manager form of government. Beginning with the November 2012 election, the Council consists of four Council Members elected by district who serve a four year term on a staggering basis, and a Mayor elected at large who serves a four year term. The City Council is responsible for passing City ordinances, resolutions, adopting the annual budget, appointing commissions and committees, and setting policy. The City Council appoints the City Attorney and City Manager who in turn appoints the heads of the various departments and other city staff. The City provides a wide range of services including planning, building, public works, engineering, parks and recreation, and general administrative activities. Services are also provided to the City and its citizens by contract and by the direct services of other government agencies and organizations. These services include police, animal control and fire protection through contract with the County of Riverside, library services through the County of Riverside, water and sewer service through the Eastern Municipal Water District, franchise agreements for electricity service through Southern California Edison, natural gas through Sempra Utilities (So. Cal. Gas), refuse collection through Waste Management, public transit through the Riverside Transit Agency, and cable service through state franchise agreements with Mediacom, Charter and Frontier. Beginning July 1, 2020 the City of Menifee opened its own municipal Police Department and no longer contracts with the County of Riverside for these services. Although the City is distinctively residential in character, the City has the potential for a strong economic base and staff is working diligently to enhance this opportunity. Currently the major commercial bases are anchored by the Countryside Marketplace, Town Center Marketplace, Menifee Lakes Plaza, Shoppes at the Lakes and other key focal points near the I-215, Newport Road and McCall Blvd. Within the last fiscal year, the City welcomed several new businesses including Bushfire Kitchen, Blitzer’s Frozen Yogurt, Bright Now Dental, Creamistry, Braces by Garcia, Pokebowl, Jamba Juice, Pacific Dental Center and Rancho Family Medical Group. Expectations are high as the City looks to the future and anticipated new key retailers such as Fairfield Inn & Suites, Moe’s Southwest Grill, Navy Federal Credit Union, Sprouts Farmers Market, Olive Garden, Chronic Tacos, WellQuest Living, Paragon Framing, Little Tokyo Ramen, Starbucks and RV SuperCenter to name just a few. Other future development projects expected include amenities such as entertainment venues, restaurants and other retail, offices, and lodging. Local Economy Mirroring the national, state and regional economies, the City of Menifee’s economy has been effected by the worldwide Covid-19 pandemic. The unemployment rate still improved from the prior year from 4.5% to 4.0%. The City and local region have been enjoying a marked increase in new construction, which has led to increased assessed valuations. The number of building permits issued had a slight decrease of 1.38% (from 6232 to 6147), while the number of planning applications increased by 67.31% (from 208 to 348). Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 647 of 828   -iii- 0 2 4 6 8 10 12 14 16 18 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unemployement Retail sales continued to experience strong growth through the fourth quarter of calendar year 2019 but had a significant slowdown in the second quarter of calendar year 2020 as a result of the March 2020 Stay-at-Home and business closure orders due to the Covid-19 pandemic, with receipts for local point of sale activity down 2.7% in the second quarter of 2020 from the same period in the prior year. Bradley Burns Sales tax collections decreased from $8,968,688 in fiscal year 2018-19 to $8,485,225 in fiscal year 2019-20, a (5.39%) decrease primarily due to the Covid-19 retail/commercial shut-down that greatly affected the second quarter sales tax collections. Measure DD Sales Tax collections increased from $11,416,810 in fiscal year 2018- 19 to $12,617,232 in fiscal year 2019-20, a 10.51% increase. This was the third full year of collection of this 1% additional sales tax that was passed by the voters in November 2016. As part of the State of California’s Fiscal Year 11-12 Budget, the Governor signed Senate Bill 89 (SB 89), which shifted millions of Vehicle License Fee (VLF) revenues to fund state law enforcement grants. This legislation particularly impacted newly incorporated cities such as Menifee, which received a special allocation from VLF revenues. The impact due to SB 89 for the City of Menifee in Fiscal Year 16-17 was estimated to be a loss of approximately $4.3 million, which the City addressed through budgetary measures. In the State of California budget for fiscal year 2017-18 SB 130 was introduced, signed and made into law. With SB 130 the City of Menifee’s annual VLF revenues were restored. In fiscal year 2018-19 the City received $6,880,540 and fiscal year 2019-20 the City received $7,156,803, an increase of 7.13%. Budget Process The City’s operating budget and five-year capital improvement plan is adopted annually by the City Council no later than the close of the prior fiscal year and serves as the foundation for planning and controlling the City’s finances. The budget process begins early in spring and encompasses budget workshops with the public and City Council in order to promote transparency and to develop goals and objectives with the community’s best interest at heart. As the City of Menifee is still relatively new and growing, the primary goal for the City continues to be maintaining a good balance between augmenting City staff and services, and utilizing existing resources efficiently as well as minimizing costs as much as possible. During the budget process for FY 20-21, the world encountered the Covid-19 pandemic. With the pandemic in mind, the following additional budget objectives included: Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 648 of 828   -iv-  Continue the process of setting up the City of Menifee’s Municipal Police Department  Revenue estimates were reduced by approximately $5.4 million.  Expenditure budgets were held to FY 19-20 levels.  12 vacant positions frozen During the year, supplemental appropriations are made to the adopted budget and approved by City Council as necessary. The City Manager is authorized to approve operating transfers between departments within a fund without limits and may reduce expenditure appropriations within a fund as a method of fiscal control. The Finance Director may decrease revenue estimates to reflect changes in the economy within the fiscal year. Annually, staff prepares and presents mid-year budget adjustments to City Council for their approval. This process incorporates updating beginning fund balances per the annual audit report and adjusting the budget as dictated by changes in the City’s goals and objectives or due to economic or legislative changes. Long-term Financial Planning The City has adopted a fund balance policy in compliance with GASB Statement No. 54, which set the goal of maintaining the General Fund balance in an amount equal to twenty-five percent (25%) of general fund expenditures. 10% of these reserves are committed or set aside for use specifically in the case of the declaration of a state or federal emergency, or a local emergency as defined in Menifee Municipal Code 1.10.010. The City's Finance Committee, made up of two City Councilmembers and Finance staff, has made it a priority to work with staff to develop necessary and appropriate fiscal policies to guide the City's future operations. The Finance Committee and City staff will also be working together on the development of a long term financial plan for the City. Annually, during the City’s budget process, the City’s engineering staff takes a five year capital project budget to City Council for adoption. For fiscal year 2020-21 in the five year capital project budget there was a total of 29 projects identified with requested funding totaling $16,069,468, from various sources. These 29 projects consist of five transportation projects, four traffic signal projects, seven street rehabilitation projects, three facility projects and ten parks/trails projects. Construction on the Scott Road & I-215 Interchange began in fiscal year 2018-19 and will be completed in the beginning of fiscal year 2020-21. Other future projects of note are the Holland Road Overpass, the Bradley Road Bridge and the widening of Scott Road west to Bundy Canyon Road. As these three projects are vital to alleviate traffic congestion and improve safety, the City is aggressively seeking various methods of funding and is also looking into local, regional and state collaborations. The City conducted a development impact fee (DIF) study. This study was conducted to establish impact fees that are compatible to today’s construction costs and meet the future needs of the City. These fees will be imposed on new construction and will bring much needed financial relief to the City by expanding current and future roadways and constructing new public facilities. City Council adopted the new schedule of DIF fees on December 20, 2017 to be implemented with a two year phase-in beginning July 1, 2018. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 649 of 828   -v- In April 2015 the City adopted its first city-wide Community Facility District (CFD) for facility maintenance. This city-wide CFD will provide maintenance services such as street lighting, street sweeping, landscape maintenance and storm drainage maintenance to those residential and commercial projects that annex into the maintenance CFD. This maintenance CFD will assess only new construction to help minimize the fiscal impact in which expanding development impose on the City. The formation of the new CFDs will allow the City to continue to provide quality services that our residents and community expect, and the level of services that make the City of Menifee one of the premier cities in Riverside County. Awards and Acknowledgements The Government Finance Officers Association (GFOA) of the United States and Canada awarded the City its Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2019. Since incorporation, the City has been bestowed this prestigious award every year that has been submitted. In order to be awarded the Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City believes that the current CAFR continues to meet the high standards associated with the Certificate of Achievement Program and we are submitting it to the GFOA to determine its eligibility for another certificate. The City's CAFR was prepared through the combined efforts of City staff. Special recognition is due to the Finance Department. With their support and coordination, the entire department assisted in closing the books for the year and ensuring timely and accurate reporting. Credit must also be given to the Mayor and City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City's finances Respectfully submitted, Armando G. Villa Rochelle Clayton Wendy Preece City Manager Deputy City Manager Deputy Finance Director Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 650 of 828   -vi- CITY OF MENIFEE Elected Officials Bill Zimmerman – Mayor Matthew Liesemeyer – Mayor Pro Tem Greg August – Councilmember Lisa A. Sobek – Councilmember Dean Deines – Councilmember Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 651 of 828  -vii- Item Title: 12.1 Comprehensive Annual Financial Report (CAFR) for Fiscal Year End June 30, 2020Item Page Number: 15Menifee Mayor and City Council                                                                               January 20, 2021Page 652 of 828   -viii- Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 653 of 828   -ix- Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 654 of 828   FINANCIAL SECTION Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 655 of 828   -1- Independent Auditor’s Report To the Honorable Mayor and Members of the City Council City of Menifee, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Menifee (the City), California, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 656 of 828   -2- Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2020, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management’s discussion and analysis, budgetary comparison information, schedule of the City’s proportionate share of the plans’ net pension liability and related ratios as of the measurement date, schedule of the pension plan’s contributions, schedule of changes in the net OPEB liability and related ratios and schedule of OPEB contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, supplemental schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual non-major fund financial statements and the budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual non- major fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 657 of 828   -3- Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2020 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. San Bernardino, California December 15, 2020 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 658 of 828     THIS PAGE INTENTIONALLY LEFT BLANK Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 659 of 828   -4- CITY OF MENIFEE MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Menifee, California, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2020. We encourage readers to consider the information presented here in conjunction with additional information beyond what we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the City’s financial statements, which follow this discussion. Financial Highlights • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows or resources at June 30, 2020, by $298.4 million (net position). Of this amount, $46.2 million is restricted for public works, future capital projects and debt service. • As of June 30, 2020, the City’s governmental funds reported combined ending fund balances of $87.9 million. • At June 30, 2020, the Unassigned Fund Balance for the General Fund was $27.2 million, $4.9 million was Committed for use in the event of an emergency as well as an additional $750,000 for the construction of a future City Hall, $4.9 million was Assigned for economic uncertainty and $3.8 million for various assignments of fund balance. Council action in 2012 set fund balance requirements at Committed of 10%, Assigned of 10% and Unassigned Fund Balance of 5% for a total required Fund Balance of 25% of actual expenditures. The actual ending General Fund balance for fiscal year 2019-20 is 70.8% of fiscal year 2019-20 actual expenditures. The fund balance amounts are reviewed each year as part of the budget process. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s Basic Financial Statements. The City’s Basic Financial Statements consist of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between them reported as net position. Over time increases in the net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The government-wide financial statements present information about the functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City include general government, engineering and public works, public safety, and community services. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 660 of 828   -5- The Government-wide Financial Statements can be found in the Table of Contents under the heading Basic Financial Statements. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements provide detailed information about the individual funds—not the City as a whole. Some funds are required to be established by State law. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money. The City of Menifee uses primarily governmental funds and two fiduciary funds for accounting and reporting purposes. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains various individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet, and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances. The General Fund, the Development Impact Fees Fund, and the Capital Projects Fund are considered to be major funds, and are presented in individual columns in the fund statements. Data from other non-major governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The Governmental Fund Financial Statements can be found in the Table of Contents under the heading Basic Financial Statements. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Menifee’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has two fiduciary funds – the Agency Fund, which is used to hold deposits that the City holds on behalf of outside parties, and the Veteran’s Memorial Private Purpose Trust Fund. The Fiduciary Funds Financial Statements can be found in the Table of Contents under the heading Basic Financial Statements. Notes to the Basic Financial Statements The Notes to the Basic Financial Statements provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the Basic Financial Statements can be found in the Table of Contents under the heading Notes to Financial Statements. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 661 of 828   -6- Government-wide Financial Analysis The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole. For fiscal year ending June 30, 2020 the City of Menifee’s total net position increased 21.2 percent from $246.2 million for fiscal year ending 2019, to $298.4 million for fiscal year ending 2020. The largest portion of the City’s net position, $215.8 million or 72.3 percent, reflects its investment in capital assets (e.g. land, buildings, improvements other than buildings, equipment, infrastructure and construction in progress); less any related debt used to acquire those assets, which is still outstanding. The City uses these capital assets to provide services to citizens; consequently these assets are not available for future spending. Although the city’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. Of the remaining total, $46.2 million is restricted to specifically stipulated spending agreements originated by law, contract or other agreements with external parties. Summary of Net Position June 30, 2020 and 2019 2019 2020 Assets: Current and other assets 99,430,107$ 112,525,209$ Restricted assets 14,908,017 1,456,815 Capital assets 174,915,496 233,462,900 Total assets 289,253,620 347,444,924 Deferred Outflows of Resources: OPEB related 775 509,891 Pension related 2,304,740 2,280,841 Total deferred outflows of resources 2,305,515 2,790,732 Liabilities: Other liabilities 20,049,218 25,604,140 Long-term liabilities 25,226,898 25,914,430 Total liabilities 45,276,116 51,518,570 Deferred Inflows of Resources: OPEB related 12,806 - Pension related 55,066 308,704 Total deferred inflows of resources 67,872 308,704 Net Position: Net investment in capital assets 156,771,192 215,774,004 Restricted 59,379,342 46,249,694 Unrestricted 30,064,613 36,384,684 Total net position 246,215,147$ 298,408,382$ Activities Governmental As shown above, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $298.4 million at June 30, 2020. Deferred outflows is defined as “a consumption of net assets by the government that is applicable to a future reporting period” and deferred inflows is defined as “an acquisition of net assets by the government that is applicable to a future reporting period”. For further information on the deferred outflows and inflows, see Notes 8 and 9 in the Basic Financial Statements section of this report. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 662 of 828   -7- Overall, Citywide governmental fund revenues for the fiscal year ending June 30. 2020, totaled $121.8 million. This figure compares with the prior year total of $133.2 million, an (8.55%) decrease. o Total program revenues of $69.0 million were 56.7 percent of total revenues o Total general revenues of $52.8 million were 43.3 percent of total revenues. Total related current year expenses accumulated to $69.6 million, compared with prior year expenses of $63.05 million. Public Safety expenses accounted for 42.5% of total current expenses. Engineering and Public Works expenses, which accounts for 26.3% of the total expenses, were used primarily for street maintenance costs and design costs. The next largest category, General Government, includes expenses related to the management and administration of the City, such as finances, management, and legal expense services, accounted for 14.2% of total expenses. Summary of Changes in Net Position For the Years Ended June 30, 2020 and 2019 2019 2020 Revenues Program revenues: Charges for services 33,823,689$ 24,835,036$ Operating grants and contributions 5,141,336 5,530,426 Capital grants and contributions 46,785,288 38,642,004 General revenues: Sales taxes 20,384,878 21,102,457 Property taxes 14,134,926 22,361,021 Other taxes 4,003,439 7,280,734 Motor vehicle in-lieu (unrestricted) 6,680,540 73,963 Use of money & property 2,011,031 1,805,179 Other revenues 211,335 155,676 Total revenues 133,176,462 121,786,496 Expenses General government 8,177,727 9,907,689 Public safety 27,595,237 29,559,843 Community development 5,347,196 5,253,832 Recreation services 4,082,858 5,432,196 Engineering and public works 16,979,928 18,331,483 Interest expense 863,713 1,108,218 Total expenses 63,046,659 69,593,261 Change in Net Position 70,129,803 52,193,235 Net position, beginning of year, restated 176,085,344 246,215,147 Net position, end of year 246,215,147$ 298,408,382$ Activities Governmental Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 663 of 828   -8- Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Below, the Statement of Revenues, Expenditures, and Change in Fund Balances shows the governmental activities fund balances for the two fiscal years ending June 30, 2020 and 2019. Governmental funds are divided into two categories consisting of major and non-major funds. During the year ending June 30, 2020, three funds were classified as major governmental funds, consisting of the General Fund, the Development Impact Fees Fund, and the Capital Projects Fund. All other funds were classified as non-major funds. A major fund is any individual fund that meets the criteria of the following combined two tests: 1) a fund is classified as a major fund if the corresponding total revenues, expenses or (expenditures), assets or liability for all funds of that category are at least 10 percent of total aggregate for all funds and; 2) at least 5 percent of the total aggregate for all funds combined. The General Fund is always classified as a major fund while all other funds must meet the qualifications to be a major fund. Summary of Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Years Ended June 30, 2020 and 2019 Other Total Development Capital Governmental Governmental General Impact Fees Projects Fund Funds Funds Total revenues: 65,185,364$ 6,170,630$ 1,513,608$ 14,273,825$ 87,143,427$ Total expenditures: 58,789,409 7,428,368 12,450,355 15,135,139 93,803,271 Revenues over (under) expenditures 6,395,955 (1,257,738) (10,936,747) (861,314) (6,659,844) Total other financing sources (uses) 73,849 - 9,507,597 (9,581,446) - Net Change in Fund Balances 6,469,804 (1,257,738) (1,429,150) (10,442,760) (6,659,844) Fund balances, beginning 35,136,272 32,692,464 5,554,885 21,131,993 94,515,614 Fund balances, ending 41,606,076$ 31,434,726$ 4,125,735$ 10,689,233$ 87,855,770$ Fiscal Year 2019-2020 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:27 Menifee Mayor and City Council January 20,2021 Page 664 of 828   -9- Other Total Development Governmental Governmental General Impact Fees Funds Funds Total revenues: 61,101,247$ 14,364,378$ 13,266,751$ 88,732,376$ Total expenditures: 49,959,120 3,665,154 11,106,228 64,730,502 Revenues over (under) expenditures 11,142,127 10,699,224 2,160,523 24,001,874 Total other financing sources (uses) (861,290) - 7,411,290 6,550,000 Net Change in Fund Balances 10,280,837 10,699,224 9,571,813 30,551,874 Fund balances, beginning 24,855,435 21,993,240 17,115,065 63,963,740 Fund balances, ending 35,136,272$ 32,692,464$ 26,686,878$ 94,515,614$ Fiscal Year 2018-2019 As of fiscal year ending 2020, the City’s total governmental funds reported a combined ending fund balance of $87.86 million, a decrease of $6,659,844 from the prior fiscal year. This decrease is primarily due to the planned use of fund balance for capital projects and the establishment of the City of Menifee’s own municipal police department. The General Fund, which is the chief operating fund of the City, had a fund balance of $41,606,076 million as of June 30, 2020. This is an increase of $6,469,804 million over the prior year. This increase is also due primarily as a result of an increase in Measure DD sales tax, increased vehicle license fee revenues, increased franchise fee revenues due to a renegotiated contract with the city’s solid waste hauler and the number of development permits processed. As mentioned earlier, the City’s total governmental funds ending fund balances, is $87.86 million of which $27.1 million represents unassigned fund balance, which is available for spending at the government’s discretion. The remainder of fund balance, $60.7 million, is either non-spendable, restricted (to indicate that it be spent only for the specific purposes stipulated by constitution, enabling legislation or external providers); committed (can be used only for specific purposes determined by formal action of a government’s legislative body); or assigned (intended to be used for specific purposes but does not meet the higher criteria of restricted or committed). As of June 30, 2020, unassigned fund balance of the General Fund is $27.2 million, with an additional $4.9 million committed by Council action for emergencies and $750,000 for a future City Hall; $4.9 million is assigned for economic uncertainty, $240,892 for fire safety, $75,000 for insurance deductibles, $446,580 for general plan update, $450,000 for capital projects, $2,550,000 for WM Contract Extension. Overall, General Fund revenues for the fiscal year ending June 30, 2020 totaled $65.2 million, compared to $61.1 million for the previous year. General Fund revenues can be broken down into six major categories shown below. By far, sales tax is the City’s single largest source of revenue. Sales tax revenues have increased 3.52% over prior year. Until fiscal year ending June 30, 2017 when the City’s 1% Measure DD sales tax initiative was passed by the voters, property taxes were the City’s largest source of revenue. Now property tax revenue is the City’s second largest source of revenue. Property taxes have increased 8.5% from prior year. Both property and sales tax revenues combined represent 54.3% of the City’s total General Fund revenues and have increased as a result of the City’s Measure DD 1% sales tax increase and growth in local property values. Development review fees (building, planning, fire and engineering permits and fees) decreased by only (0.69%) from the prior year as new construction has stayed steady again during fiscal year 2019-20. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:28 Menifee Mayor and City Council January 20,2021 Page 665 of 828   -10- General fund expenditures totaled $58.8 million for the fiscal year ending June 30, 2020, compared to $50.1 million for the previous year. This increase of $8.7 million was due primarily to increases in public safety costs and salaries and benefits with an additional 7.5 FTE’s. Fiscal year 2019-20 was a considered a cross-over year for the City of Menifee’s public safety. The City of Menifee was still under contract with the County of Riverside for Sheriff services through June 30, 2020 but throughout the fiscal year, the City was also hiring staff, purchasing equipment and converting the old city hall building into a police station for their first municipal police department to begin services as of July 1, 2020. General Fund Budgetary Highlights Total General Fund revenues, net of transfers, were $6.5 million greater than budgeted primarily due to the third year of collections of the City’s Measure DD 1% sales tax increase along with the renegotiation of the contract for franchise fees for solid waste disposal. Interest income was also higher due to higher investment interest rates. Total General Fund expenditures were approximately $9.3 million less than the budgeted amounts mostly due to unfilled authorized positions and multi-year capital projects that will be completed in future years. The budget for capital items that were budgeted but incomplete at year end will be rolled into the subsequent year’s budget, while any operating budget carryovers will require council approval for addition to the next budget. Capital Asset and Debt Administration Capital Assets The City’s investment in capital assets for its governmental activities as of June 30, 2020, totals $215.7 million, net of accumulated depreciation. This investment in capital assets includes land, buildings, system improvements, machinery and equipment, park facilities, roads, highways, and bridges. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:29 Menifee Mayor and City Council January 20,2021 Page 666 of 828   -11- Summary of Changes in Capital Assets June 30, 2020 Balance Balance July 1, 2019 Additions Deletions June 30, 2020 Governmental activities: Capital assets, not being depreciated: Land 18,300,742$ 2,956,514$ -$ 21,257,256$ Right-of-way 415,800 - - 415,800 Construction in progress 21,777,541 19,922,836 (10,881,650) 30,818,727 Total capital assets, not being depreciated 40,494,083 22,879,350 (10,881,650) 52,491,783 Capital assets,being depreciated: Building and improvements 14,874,241 16,716,899 - 31,591,140 Equipment and furniture 1,276,933 1,564,965 - 2,841,898 Vehicles 2,107,786 2,527,492 - 4,635,278 Software and website design 495,784 167,146 - 662,930 Infrastructure 190,693,109 35,376,005 - 226,069,114 Total capital assets, being depreciated 209,447,853 56,352,507 - 265,800,360 Less accumulated depreciation (75,026,440) (9,802,803) - (84,829,243) Total capital assets, being depreciated, net 134,421,413 46,549,704 - 180,971,117 Governmental Activities Capital Assets, net 174,915,496$ 69,429,054$ (10,881,650)$ 233,462,900$ Total capital assets increased 33.47% from prior year. During the current fiscal year, the City accepted $44.69 million in infrastructure improvements from development projects and had an additional $19.9 million in construction in progress. During the current year the City also acquired new city vehicles totaling $2,527,492 for the Administration, Public Works, Police, and Community Services departments. Additional information on the City’s capital assets can be found within Note 4 – Capital Assets in the notes to the basic financial statements section of this report. Long-term Liabilities At the end of the current fiscal year, the City had total unsecured debt outstanding of $25.01 million. With the passing of SB 107 in September 2015, the County of Riverside and the City of Menifee were able to sign an agreement forgiving the debt the City of Menifee owed to the County of Riverside for cityhood startup costs. The total debt forgiveness was in the amount of $1,147,724, including accrued interest. During Fiscal Year 2011-12, the City issued $20 million in Certificates of Participation through the California Communities Total Road Improvement Program (TRIP). The proceeds from this financing were used to fund various capital road improvements, and are being repaid from a combination of future Gas Tax and Measure “A” revenues. The City also recognized a premium reduction on the TRIP financing in the amount of ($30,408), which is amortized over the life of the financing; the current outstanding balance is $663,896. In June of 2019 the City entered into a financing agreement between Western Riverside Council of Governments (WRCOG) and Southern California Edison (SCE) to purchase approximately 6,300 streetlights from SCE. The initial debt is $6,550,000 and is financed over a period of fifteen years. The outstanding balance is $6,499,912. Other debts include the City’s liabilities arising from employee’s accrued leave, or compensated absences of $825,050. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:30 Menifee Mayor and City Council January 20,2021 Page 667 of 828   -12- Summary of Changes in Long-Term Liabilities June 30, 2020 Balance Balance Long- Due Within July 1, 2019 Increases Decreases June 30, 2020 Term One Year Transportation Revenues 17,450,000$ -$ (425,000)$ 17,025,000$ 16,580,000$ 445,000$ Cert of Participation, 2012B 694,304 - (30,408) 663,896 633,488 30,408 Unamortized Premium 6,550,000 - (50,088) 6,499,912 6,152,925 346,987 Compensated Absences 532,594 993,930 (701,474) 825,050 660,040 165,010 Long-Term Liabilities Total 25,226,898$ 993,930$ (1,206,970)$ 25,013,858$ 24,026,453$ 987,405$ Distribution Facilities Financing Agreement Additional information on the City’s long-term liabilities can be found entitled Note 1 – Summary of Significant Accounting Policies, Note 6 – Long-Term Liabilities, Note 8 – Pension Plan, and Note 9 – Post Employment Benefits in the notes to the basic financial statements section of this report At the time of budget preparation for Fiscal Year 2020-21, the world encountered the Covid-19 pandemic. After the business closures and Stay-at Home orders came out from the Governor of California, City staff ultimately cut the revenue budget by $5.4 million and held budgeted expenditures to fiscal year 2019-20 levels. These cuts included freezing 12 vacant positions, reducing General Fund funding of capital projects and other various expenditure reductions. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Wendy Preece, Deputy Finance Director, City of Menifee, 29844 Haun Road, Menifee, CA 92586 or by telephone to (951) 672-6777. The entire CAFR is also available on the City’s website: www.cityofmenifee.us. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:31 Menifee Mayor and City Council January 20,2021 Page 668 of 828   Basic Financial Statements Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:32 Menifee Mayor and City Council January 20,2021 Page 669 of 828 CITY OF MENIFEE STATEMENT OF NET POSITION JUNE 30, 2020 The accompanying notes are an integral part of these financial statements. -13- Governmental Activities Assets: Cash and investments 103,707,581$ Receivables: Accounts 8,571,867 Accrued interest 229,081 Prepaid items 13,473 Restricted assets: Cash with fiscal agent 1,456,815 Other current assets 3,207 Capital assets, not being depreciated 52,491,783 Capital assets, depreciated, net 180,971,117 Total Assets 347,444,924 Deferred Outflows of Resources: OPEB related 509,891 Pension related 2,280,841 Total Deferred Outflows of Resources 2,790,732 Liabilities: Accounts payable 19,351,844 Accrued liabilities 963,577 Accrued interest 71,486 Deposits payable 5,217,233 Long-term liabilities, due within one year 987,405 Noncurrent liabilities: Total OPEB liability 876,974 Net Pension liability 23,598 Long-term liabilities, due beyond one year 24,026,453 Total Liabilities 51,518,570 Deferred Inflows of Resources: Pension related 308,704 Total Deferred Inflows of Resources 308,704 Net Position: Net investment in capital assets 215,774,004 Restricted for: Community development projects 4,569,409 Public works 40,108,013 Debt service 1,572,272 Unrestricted 36,384,684 Total Net Position 298,408,382$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:33 Menifee Mayor and City Council January 20,2021 Page 670 of 828 CITY OF MENIFEE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2020 The accompanying notes are an integral part of these financial statements. -14- Net (Expenses) Revenues and Changes in Net Position Operating Capital Charges for Contributions Contributions Governmental Expenses Services and Grants and Grants Activities Functions/Programs Governmental activities: General government 9,907,689$ 6,657,086$ -$ -$ (3,250,603)$ Public safety 29,559,843 1,866,174 203,301 - (27,490,368) Community development 5,253,832 9,583,618 519,313 - 4,849,099 Recreation services 5,432,196 266,571 - - (5,165,625) Engineering and public works 18,331,483 6,461,587 4,807,812 38,642,004 31,579,920 Interest on long-term debt 1,108,218 - - - (1,108,218) Total governmental activities 69,593,261$ 24,835,036$ 5,530,426$ 38,642,004$ (585,795) General Revenues: Taxes: Property tax, levied for general purpose 22,361,021 Transient occupancy tax 189,032 Sales tax - Shared State revenue 21,102,457 Franchise taxes 6,289,806 Other taxes 801,896 Unrestricted: Vehicle license fees 73,963 Use of money and property 1,805,179 Other 155,676 Total General Revenues 52,779,030 Change in net position 52,193,235 Net Position, beginning of year 246,215,147 Net Position, end of year 298,408,382$ Program Revenues Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:34 Menifee Mayor and City Council January 20,2021 Page 671 of 828 CITY OF MENIFEE BALANCE SHEET – GOVERNMENTAL FUNDS JUNE 30, 2020 The accompanying notes are an integral part of these financial statements. -15- Special Revenue Capital Fund Projects Fund Total Non-Major Total Development Capital Governmental Governmental General Impact Fees Projects Fund Funds Funds Assets Cash and investments 52,659,912$ 33,526,319$ 4,284,540$ 13,236,810$ 103,707,581$ Receivables: Accounts, grants and taxes 6,109,917 26,673 - 2,435,277 8,571,867 Accrued interest 105,384 88,088 4,227 31,382 229,081 Prepaid items 13,473 - - - 13,473 Other current assets 3,207 - - - 3,207 Due from other funds 1,744,771 - - - 1,744,771 Restricted assets: Cash and investments with fiscal agents - - 97,234 1,359,581 1,456,815 Total Assets 60,636,664$ 33,641,080$ 4,386,001$ 17,063,050$ 115,726,795$ Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts payable 12,895,988$ 2,206,354$ 260,266$ 3,989,236$ 19,351,844$ Accrued liabilities 917,367 - - 46,210 963,577 Deposits payable 5,217,233 - - - 5,217,233 Due to other funds - - - 1,744,771 1,744,771 Total Liabilities 19,030,588 2,206,354 260,266 5,780,217 27,277,425 Deferred Inflows of Resources: Unavailable revenues - - - 593,600 593,600 Total Deferred Inflows of Resources - - - 593,600 593,600 Fund Balances: Nonspendable: Prepaid items 13,473 - - - 13,473 Restricted for: Community development projects - - - 4,569,409 4,569,409 Engineering and public works - 31,434,726 4,125,735 4,605,515 40,165,976 Debt service - - - 1,572,272 1,572,272 Committed to: Emergency contingency 4,938,958 - - - 4,938,958 City hall 750,000 - - - 750,000 Assigned to: Economic uncertainty 4,938,958 - - - 4,938,958 Fire safety 240,892 - - - 240,892 Insurance 75,000 - - - 75,000 General plan update 446,580 - - - 446,580 Capital projects 450,000 - - - 450,000 Waste Management 2,550,000 - - - 2,550,000 Unassigned 27,202,215 - - (57,963) 27,144,252 Total Fund Balances 41,606,076 31,434,726 4,125,735 10,689,233 87,855,770 Total Liabilities, Deferred Inflows of Resources and Fund Balances 60,636,664$ 33,641,080$ 4,386,001$ 17,063,050$ 115,726,795$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:35 Menifee Mayor and City Council January 20,2021 Page 672 of 828 CITY OF MENIFEE RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2020 The accompanying notes are an integral part of these financial statements. -16- 87,855,770$ 233,462,900 Certificates of Participation (17,025,000)$ Debt Agreement 2019 (6,499,912) Unamortized bond premiums/discounts (663,896) Net pension liability (23,598) Total OPEB liability (876,974) Compensated absences (825,050) (25,914,430) (71,486) 2,280,841 509,891 (308,704) 593,600 298,408,382$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. Revenues reported as unavailable and unearned in the governmental funds are recognized in the statement of activities. Pension related deferred outflows of resources Fund balances of governmental funds Net position of governmental activities Long-term liabilities and compensated absences that have not been included in the governmental fund activity: Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. Deferred inflows and outflows of resources not due and payable, or owed and receivable, respectively, in the current period, are not reported in the funds: OPEB related deferred outflows of resources Pension related deferred inflows of resources Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:36 Menifee Mayor and City Council January 20,2021 Page 673 of 828 CITY OF MENIFEE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 The accompanying notes are an integral part of these financial statements. -17- Special Revenue Capital Fund Projects Fund Total Non-Major Total Development Capital Governmental Governmental General Impact Fees Projects Fund Funds Funds Revenues: Taxes 43,230,255$ -$ -$ 881,117$ 44,111,372$ Licenses and permits 10,011,450 - - - 10,011,450 Intergovernmental 7,246,904 - 1,411,430 8,103,774 16,762,108 Charges for services 3,127,661 - - 5,050,250 8,177,911 Use of money and property 852,864 611,453 102,178 238,684 1,805,179 Fines and forfeitures 598,244 - - - 598,244 Developer participation - 5,559,177 - - 5,559,177 Miscellaneous 117,986 - - - 117,986 Total Revenues 65,185,364 6,170,630 1,513,608 14,273,825 87,143,427 Expenditures: Current: General government 9,348,685 50,000 - 582,790 9,981,475 Public safety 33,199,921 - - 669,559 33,869,480 Community development 5,196,946 - - - 5,196,946 Parks and recreation 1,993,991 - - 1,983,488 3,977,479 Engineering and public works 4,570,234 3,797,798 2,975,015 9,654,814 20,997,861 Capital outlay 4,479,632 3,580,570 9,475,340 629,003 18,164,545 Debt service: Principal retirement - - - 475,088 475,088 Interest and fiscal charges - - - 1,140,397 1,140,397 Total Expenditures 58,789,409 7,428,368 12,450,355 15,135,139 93,803,271 Excess of revenues over(under) expenditures 6,395,955 (1,257,738) (10,936,747) (861,314) (6,659,844) Other Financing Sources (Uses): Transfers in 139,678 - 9,507,597 1,830,547 11,477,822 Transfers out (65,829) - - (11,411,993) (11,477,822) Total Other Financing Sources (Uses)73,849 - 9,507,597 (9,581,446) - Net Change in Fund Balances 6,469,804 (1,257,738) (1,429,150) (10,442,760) (6,659,844) Fund Balances, beginning of year 35,136,272 32,692,464 5,554,885 21,131,993 94,515,614 Fund Balances, end of year 41,606,076$ 31,434,726$ 4,125,735$ 10,689,233$ 87,855,770$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:37 Menifee Mayor and City Council January 20,2021 Page 674 of 828 CITY OF MENIFEE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2020 The accompanying notes are an integral part of these financial statements. -18- Net change in fund balances - total governmental funds (6,659,844)$ Amounts reported for governmental activities in the statement of activities are different because: Capital outlay 18,164,545 Additional costs capitalized 15,539,227 Contributed assets 34,646,435 Depreciation expense (9,802,803) 475,088$ 30,408 505,496 1,771 (292,456) (3,366) 198,634 (104,404) Change in net position of governmental activities 52,193,235$ Cost of assets capitalized: Amortization of bond premiums/discounts Principal repayments OPEB related net adjustment Deferred inflows and outflows of resources not due and payable, or owed and receivable, respectively, in the current period, are not reported in the funds: Pension related net adjustment Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense or allocated to the appropriate functional expense. The capital assets activity is reconciled as follows: Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Accrued interest for long-term liabilities. This is the change in accrued interest for the current period. Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. This is the change in compensated absences for the current period. Revenues reported as unavailable and unearned revenue in the governmental funds are recognized in the statement of activities. These are included in the intergovernmental revenues under the modified accrual basis of accounting in the governmental fund activity when they are measureable and available. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:38 Menifee Mayor and City Council January 20,2021 Page 675 of 828 CITY OF MENIFEE STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2020 The accompanying notes are an integral part of these financial statements. -19- Private - Purpose Trust Fund Agency Veteran's Fund Memorial Assets: Cash and investments 2,455,585$ 4,316$ Receivables: Accrued interest 4,994 12 Total Assets 2,460,579$ 4,328 Liabilities: Accounts payable -$ 55 Deposits payable 2,460,579 - Total Liabilities 2,460,579$ 55 Net Position: Held in trust for other purposes 4,273 Total Net Position 4,273 Total Liabilities and Net Position 4,328$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:39 Menifee Mayor and City Council January 20,2021 Page 676 of 828 CITY OF MENIFEE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 The accompanying notes are an integral part of these financial statements. -20- Private - Purpose Trust Fund Veteran's Memorial Additions: Contributions 450$ Interest and change in fair value of investments 93 Total Additions 543 Deductions: Administrative expenses 275 Total Deductions 275 Change in Net Position 268 Net position, beginning of year 4,005 Net position, end of year 4,273$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:40 Menifee Mayor and City Council January 20,2021 Page 677 of 828     THIS PAGE INTENTIONALLY LEFT BLANK Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:41 Menifee Mayor and City Council January 20,2021 Page 678 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -21- I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Summary of Significant Accounting Policies a. Description of the Reporting Entity The City of Menifee, California (the City), was incorporated on October 1, 2008, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City is governed by an elected five-member board. As required by generally accepted accounting principles, these financial statements present the City (the primary government) and its component units. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the reporting entity's financial statements to be incomplete. Under this definition, it is determined that there are no component units for this reporting entity, and these financial statements present the financial reporting entity that consisted solely of the City as the primary government. b. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the process of consolidation. Governmental activities are normally supported by taxes and intergovernmental revenues. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The fiduciary funds are reported on the accrual basis of accounting. Major individual governmental funds are reported as separate columns in the fund financial statements. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:42 Menifee Mayor and City Council January 20,2021 Page 679 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -22- Note 1: Summary of Significant Accounting Policies (continued) c. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. However, grant revenues are considered available within 6 months of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City’s fiduciary fund financial statements report an agency fund and a private- purpose trust fund. Private-purpose trust funds are used to account for donations in which another agency will benefit from. The private-purpose trust fund is reported using the economic resources measurement focus and the accrual basis of accounting. The agency fund has no measurement focus but utilizes the accrual basis of accounting for reporting its assets and liabilities. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. All general tax receipts and fee revenue not allocated by law, Council policy, or contractual agreement to other funds are accounted for in the General Fund. General Fund expenditures include operations traditionally associated with activities, which are not required to be accounted for or paid by another fund. The Development Impact Fees (DIF) Fund – This fund is used to account for 9 separate DIF Funds. Fees are charged to new development to pay for future infrastructure costs such as roads, fire facilities, parks and libraries. The Capital Projects Fund - This fund is used to account for the project completion of street and highways capital improvements financed through various sources, including, but no limited to developer contributions and grants. Additionally, the City reports the following fund types: Agency fund is used to account for third party contributions received by the City for which the City’s responsibility is essentially custodial. Private-purpose trust fund is used to account for donations made for the Veteran’s Memorial in which the City is collecting and will be building on behalf of another agency. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:43 Menifee Mayor and City Council January 20,2021 Page 680 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -23- Note 1: Summary of Significant Accounting Policies (continued) d. Assets, Liabilities and Net Position or Equity Cash and Investments The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. For financial statement presentation purposes, cash and cash equivalents are shown as both restricted and unrestricted cash and investments in the governmental funds. Investments are reported at fair value. The City’s policy is generally to hold investments until maturity or until market values equal or exceed cost. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of an allowance for uncollectable. Capital Assets Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($50,000 for infrastructure) and an estimated useful life in excess of two or more years. Assets are generally capitalized as a whole unit or system and not by the individual units that comprise the system. For example, a phone system is capitalized as one entire system and not on the individual components such as the phones, phone server, installation costs, and wiring. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of acquisition. Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the governmental activities column in the government-wide financial statements. In accordance with generally accepted accounting principles, the City has reported all general infrastructure assets. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:44 Menifee Mayor and City Council January 20,2021 Page 681 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -24- Note 1: Summary of Significant Accounting Policies (continued) d. Assets, Liabilities and Net Position or Equity (continued) The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant, equipment, and infrastructure of the primary government, as well as its component units, are depreciated using the straight-line method over the following estimated useful lives: Assets Years $ Threshold Equipment and furniture 2-10 5,000$ Vehicles 2-10 5,000 Software 2-10 5,000 Infrastructure 20-50 50,000 Compensated Absences Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Normally, an employee cannot accrue more than his regular annual entitlement. Payment for vacation not taken is payable at the end of the cumulative time. Sick leave is payable when an employee is unable to work because of illness. Upon termination an employee will not be paid for any unused sick leave, with the exception for the City Manager pursuant to employment contract. All unpaid vacation and sick leave, if applicable, is recorded as a liability in the government-wide financial statements. Compensated absence liabilities are expected to be liquidated by the General Fund in future periods. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:45 Menifee Mayor and City Council January 20,2021 Page 682 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -25- Note 1: Summary of Significant Accounting Policies (continued) d. Assets, Liabilities and Net Position or Equity (continued) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from taxes and intergovernmental revenues. These amounts are unavailable and recognized as an inflow of resources in the period that the amounts become available. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. Fund Balance In the fund financial statements, government funds report the following fund balance classification: Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation. Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution. Assigned include amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. The City Manager is authorized to assign amounts to a specific purpose, which was established by the governing body in Resolution No. 2011-226 approved on June 21, 2011. Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes in the General Fund, and deficit fund balances in any other funds. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:46 Menifee Mayor and City Council January 20,2021 Page 683 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -26- Note 1: Summary of Significant Accounting Policies (continued) d. Assets, Liabilities and Net Position or Equity (continued) An Emergency Contingency commitment of fund balance has been established through Resolution 2011-226. This reserve is set at a minimum of 10% of General Fund operating expenditures, which represents approximately 91 days of the General Fund’s operations. The specified uses include the declaration of a state or federal emergency or a local emergency as defined in Section 1.10.010 of the Menifee Municipal Code. City Council may, by majority vote of the members, change the amount of this commitment and/or the specific uses through adoption of resolution. An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate. However, if expenditures incurred for a specific purpose exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Property Taxes Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of Riverside collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:47 Menifee Mayor and City Council January 20,2021 Page 684 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -27- Note 1: Summary of Significant Accounting Policies (continued) d. Assets, Liabilities and Net Position or Equity (continued) Unsecured personal property taxes become due on the first of March each year and are delinquent on August 31. Functional Classifications Expenditures of the governmental funds are classified by function. Functional classifications are defined as follows:  General Government includes legislative activities, City Clerk, City Attorney, City Manager as well as management or supportive services across more than one functional area.  Public Safety includes those activities which involve police protection, fire protection and animal control services.  Community Development includes those activities which involve planning, building and safety and code enforcement.  Parks and Recreation includes activities which provide recreation, cultural and educational services.  Engineering and Public Works includes all maintenance, engineering and capital improvements which relate to streets and other public facilities. e. Reconciliation of Government-Wide and Fund Financial Statements Explanation of certain differences between the governmental fund statement of revenues, expenditures and changes in fund balances and the government-wide statement of activities: The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense or allocated to the appropriate functional expense." f. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:48 Menifee Mayor and City Council January 20,2021 Page 685 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -28- Note 1: Summary of Significant Accounting Policies (continued) g. Pension Plans For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website at www.calpers.ca.gov. GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used. Valuation Date (VD) June 30, 2018 Measurement Date (MD) June 30, 2019 Measurement Period (MP) July 1, 2018 to June 30, 2019 h. Other Postemployment Benefits (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date (VD) June 30, 2019 Measurement Date (MD) June 30, 2019 Measurement Period (MP) July 1, 2018 to June 30, 2019 The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:49 Menifee Mayor and City Council January 20,2021 Page 686 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -29- II. STEWARDSHIP Note 2: Stewardship, Compliance and Accountability a. Budgetary Data General Budget Policies The City Council approves each year's budget prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the City Council. Supplemental appropriations, where required during the period, are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the function level. At fiscal year-end, all operating budget appropriations lapse. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General, Special Revenue and similar governmental funds. Encumbrances represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities. Budget Basis of Accounting Budgets for all governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). b. Deficit fund balances: The following Nonmajor Special Revenues fund presents a fund balance deficit as of the year ended June 30, 2020: Fund Fund Balance Deficit County Service Area (57,963)$ The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:50 Menifee Mayor and City Council January 20,2021 Page 687 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -30- Note 2: Stewardship, Compliance and Accountability (continued) c. Excess of Expenditures over Appropriations: Variance with Appropriations Expenditures Final Budget Major Funds: Capital Projects Capital outlay 4,584,449$ 9,475,340$ (4,890,891)$ Nonmajor Funds: CFD Hidden Hills Capital outlay -$ 4,651$ (4,651)$ 2015-2 Citywide CFD Capital outlay 1,600$ 8,561$ (6,961)$ III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2020, cash and investments were reported in the accompanying financial statements as follows: Governmental activities Cash and investments 103,707,581$ Cash with fiscal agent 1,456,815 Fiduciary funds Cash and investment 2,459,901 Total Cash and Investments 107,624,297$ Cash and investments held by the City consist of the following: Cash on hand 9,000$ Deposits with financial institutions 39,607,742 Investments 68,007,555 Total Cash and Investments 107,624,297$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:51 Menifee Mayor and City Council January 20,2021 Page 688 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -31- Note 3: Cash and Investments (continued) The City maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy which authorizes it to invest in various investments. Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on average daily cash balances. Deposits with financial institutions The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Investments Authorized by the California Government Code and the Entity’s Investment Policy The table below identifies the investment types that are authorized by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:52 Menifee Mayor and City Council January 20,2021 Page 689 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -32- Note 3: Cash and Investments (continued) *Maximum Investment Investment Types *Maximum Percentage of In One Authorized by State Law Maturity Portfolio Issuer U.S. Treasury Bills 5 years 60% None U.S. Treasury Notes 5 years 40% None Federal Agency Securities 5 years 20% None Certificates of Deposit 5 years 10% None Commercial Paper 270 days 10% None Bankers acceptance 180 days 10% None Local Agency Investment Fund N/A None $75 million Passbook savings demand deposits 5 years None None Mutual funds that invest only in State of CA N/A 20% None SEC-registered money market mutual funds N/A 20% None * Based on state law requirements or investment policy requirements, whichever is more restrictive Investments Authorized by Debt Agreements The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. Fair Value Generally Accepted Accounting Principles (GGAP), establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:53 Menifee Mayor and City Council January 20,2021 Page 690 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -33- Note 3: Cash and Investments (continued) Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy does not limit investments in Federal Agency Securities and Treasury Obligations to ratings issued by nationally recognized statistical rating organizations. The City’s investment policy does restrict investments in Corporate Medium Term Notes (MTN’s) to those rated A or better by a nationally recognized statistical rating organization. Presented below are the City’s investments and the actual rating as of fiscal year end for each investment type: Investment Type Amount Minimum legal rating Aaa Not rated City investments: State investment pool (LAIF) 62,814,587$ N/A -$ 62,814,587$ Cash & Money market funds 7,000 N/A - 7,000 U.S. Treasury Obligations 966,530 N/A 966,530 - Federal agency securities 1,914,983 N/A 1,914,983 - U.S. Corporate bonds 771,225 N/A 771,225 - Foreign corporate notes 76,415 76,415 - Held by bond trustee and escrow agent: Money market funds 1,343,667 N/A - 1,343,667 Cash 113,148 N/A 113,148 - 68,007,555$ 3,842,301$ 64,165,254$ Rating at year end Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City’s investment in LAIF is unrated. As of June 30, 2020, $43,898,519 of the City’s deposits with financial institutions in excess of Federal Depository Insurance Corporation (FDIC) limits were held in collateralized accounts as required by the California Government Code. Concentration of Credit Risk The City’s investment policy imposes restrictions on percentages that the City can invest in certain types of investments and with any one issuer for certain types of investments. Generally accepted accounting principles requires a separate disclosure if any single issuer comprises more than 5% of the total investment value. At June 30, 2020, the City’s had no single issuer of more than 5%. Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this requirement. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:54 Menifee Mayor and City Council January 20,2021 Page 691 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -34- Note 3: Cash and Investments (continued) Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2020, the City had the following investments and remaining maturities: 1 year 1 year 3 years Fair or less to 3 years to 5 years Value City investments: State investment pool (LAIF) 62,814,587$ -$ -$ 62,814,587$ Cash & Money market funds 7,000 - - 7,000 U.S. Treasury Obligations 70,563 422,879 473,088 966,530 Federal agency securities 231,370 822,359 861,254 1,914,983 U.S. Corporate bonds 172,169 325,123 273,933 771,225 Foreign corporate notes - - 76,415 76,415 Held by bond trustee and escrow agent: Money market funds 1,343,667 - - 1,343,667 Cash 113,148 - - 113,148 Total investments 64,752,504$ 1,570,361$ 1,684,690$ 68,007,555$ Investments Maturities Fair Value Measurements Generally accepted accounting principles, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability. The valuation technique used for level 2 investments include "inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly". Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; interest rates and yield curves observable at commonly quoted intervals; implied volatilities; credit spreads, and market-corroborated inputs. The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:55 Menifee Mayor and City Council January 20,2021 Page 692 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -35- Note 3: Cash and Investments (continued) Fair Value Measurements (continued) The following table presents the balances of the assets measured at fair value on a recurring basis as of June 30, 2020: Investments by Fair Value Hierarchy Total Level 1 Level 2 Level 3 City investments: U.S. Treasury Obligations 966,530$ -$ 966,530$ -$ Federal agency securities 1,914,983 - 1,914,983 - U.S. Corporate bonds 771,225 - 771,225 - Foreign corporate notes 76,415 - 76,415 - Total Investments by Fair Value Hierarchy 3,729,153 -$ 3,729,153$ -$ Investments outside the Fair Value Hierarchy City investments: State investment pool (LAIF) 62,814,587 Money market funds 7,000 Held by bond trustee and escrow agent: Money market funds 1,343,667 Cash 113,148 Total Investments 68,007,555$ The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:56 Menifee Mayor and City Council January 20,2021 Page 693 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -36- Note 4: Capital Assets Capital asset activity for the year ended June 30, 2020, was as follows: Beginning Deletions/ Ending Balance Additions Adjustments Balance Governmental activities: Capital assets, not being depreciated: Land 18,300,742$ 2,956,514$ -$ 21,257,256$ Right-of-way 415,800 - - 415,800 Construction in progress 21,777,541 19,922,836 (10,881,650) 30,818,727 Total Capital Assets, Not Being Depreciated 40,494,083 22,879,350 (10,881,650) 52,491,783 Capital assets, being depreciated: Building and improvements 14,874,241 16,716,899 - 31,591,140 Equipment and furniture 1,276,933 1,564,965 - 2,841,898 Vehicles 2,107,786 2,527,492 - 4,635,278 Software and website design 495,784 167,146 - 662,930 Infrastructure 190,693,109 35,376,005 - 226,069,114 Total Capital Assets, Being Depreciated 209,447,853 56,352,507 - 265,800,360 Less accumulated depreciation: Building and improvements (2,170,820) (1,289,930) - (3,460,750) Equipment and furniture (943,787) (249,872) - (1,193,659) Vehicles (976,624) (374,644) - (1,351,268) Software and website design (405,604) (20,633) - (426,237) Infrastructure (70,529,605) (7,867,724) - (78,397,329) Total Accumulated Depreciation (75,026,440) (9,802,803) - (84,829,243) Total Capital Assets, Being Depreciated, Net 134,421,413 46,549,704 - 180,971,117 Governmental Activities Capital Assets, Net 174,915,496$ 69,429,054$ (10,881,650)$ 233,462,900$ Depreciation expense was charged to the following functions in the statement of activities: Governmental Activities: General government 60,927$ Public safety 520,662 Community development 42,151 Recreation services 1,443,861 Engineering and public works 7,735,202 Total Depreciation Expense - Governmental Activities 9,802,803$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:57 Menifee Mayor and City Council January 20,2021 Page 694 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -37- Note 5: Operating Lease        As of June 2020, the City of Menifee has the following five (5) significant material leases: ‐ Menifee City Hall - Ten (10) year lease for main City Hall lease, beginning April 2019 through March 2029, subject to pre-negotiated annual increases). ‐ Menifee Police Headquarters Buildings - Fifteen (15) year lease for main Police Headquarters (lease was for previously Menifee City Hall converted into the Menifee Police Headquarters in 2019. The original lease began April 2009 and has been extended through March 2024. The lease agreement calls for an annual rent increase based on the Cost of Living Index (CPI). ‐ Menifee Police Headquarters Vacant Land- (5 year lease for main City Hall lease, beginning July 1 2019 through March 2029. The lease agreement calls for an annual rent increase based on the Cost of Living Index (CPI). ‐ Menifee Police Headquarters Modular Buildings- (Women’s/Men’s Locker rooms) 60 month lease for two (2) modular buildings (men and women’s locker rooms, beginning April 2020 and ending March 2025. ‐ Menifee Police Substation- 60 month lease for commercial storefront site in Sun City used as Menifee PD substation, beginning January 2018 through December 2022, subject to annual rate adjustments. The total minimum lease payments in aggregate for the year were $864,418. The future minimum lease payments until completed lease terms are as follows: Year Ended June 30, Amount 2021 967,751$ 2022 1,047,846 2023 1,135,853 2024 1,124,301 2025 814,923 Thereafter 3,561,396 Additionally, the City of Menifee has a few smaller leases representing eight (8) vehicle leases, and printers/scanners and postage machine equipment The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:58 Menifee Mayor and City Council January 20,2021 Page 695 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -38- Note 6: Long-Term Liabilities The following is a schedule of changes in long-term liabilities for the fiscal year ended June 30, 2020: Beginning Ending Due Within Balance Additions Deductions Balance One Year Long-term debt: 17,450,000$ -$ (425,000)$ 17,025,000$ 445,000$ Unamortized Premium/Discount Premium - T.R.I.P. COP 694,304 - (30,408) 663,896 30,408 Direct Borrowings: Distribution Facilities Financing Agreement 2019 6,550,000 - (50,088) 6,499,912 346,987 Other long-term liability: Compensated absences 532,594 993,930 (701,474) 825,050 165,010 Total long-term debt 25,226,898$ 993,930$ (1,206,970)$ 25,013,858$ 987,405$ Certificates of Participation, Series 2012B Transportation Revenue Certificates of Participation Bonds, Series 2012B – Original Issue $20,000,000 The 2012B Certificates of Participation Bonds were issued to finance the City’s design, acquisition, and construction roadway improvement projects. The bonds mature annually through 2042, in amounts ranging from $290,000 to $1,240,000. Interest rates vary from 2.0% to a maximum of 5.25% and are payable semiannually on December 1 and June 1. The bonds can be redeemed prior to maturity if notice of such redemption is mailed and trustee is satisfied with such procedure. Bonds maturing before June 1, 2022, are not subject to redemption prior to maturity. Bonds maturing on or after June 1, 2023, are subject to redemption in whole or in part on June 1, 2022, and each interest date thereafter. Assets irrevocably pledged as collateral for the bonded debt are all of the revenues and all money in the Pledged Tax Fund (the "Gas Tax Account" and the "Measure A Receipts Account”) and in the funds or accounts so specified and provided for in the 2012 Installment Sale Agreement. In the Event of Default the Trustee may, by notice in writing to the City, declare the entire principal amount of the unpaid 2012 Installment Sale Payments and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable. The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:59 Menifee Mayor and City Council January 20,2021 Page 696 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -39- Note 6: Long-Term Liabilities (continued) Transportation Revenue Certificates of Participation Bonds, Series 2012B – Original Issue $20,000,000 (continued) At June 30, 2020, the outstanding balance of these bonds was $17,025,000. The annual debt service requirements on these bonds are as follows: Year Ending June 30 Principal Interest Total 2021 445,000$ 857,837$ 1,302,837$ 2022 470,000 835,587 1,305,587 2023 490,000 812,087 1,302,087 2024 515,000 786,362 1,301,362 2025 545,000 759,325 1,304,325 2026-2030 3,160,000 3,360,325 6,520,325 2031-2035 3,925,000 2,591,125 6,516,125 2036-2040 5,060,000 1,458,187 6,518,187 2041-2044 2,415,000 191,887 2,606,887 Totals 17,025,000$ 11,652,722$ 28,677,722$ Distribution Facilities Financing Agreement 2019 – Direct borrowing: On July 6, 2018, the City entered into a financing agreement to purchase Certain Southern California Edison Company Street Light Facilities. The agreement calls for the conveyance and sale of 6,310 LS-1 electric streetlights facilities. The term of the agreement is 15 years, expiring on 2034. Interest rate is set at 4.30% and debt payments are payable semiannually on December 1 and June 1. The amount of unused funds in the escrow account as of June 30, 2020 is $59,545. The Collection Fund and the Rental Payment Subaccount established under the agreement, all securities entitlements, investment property and other financial assets now or hereafter credited to the Collection Fund and the Rental Payment Subaccount, all of Lessee’s and WRCOG’s rights in respect of the Collection Fund and the Rental Payment Subaccount, such securities entitlements, investment property and other financial assets therein, and all products, proceeds and revenues of and from any of the foregoing personal property as considered pledged collateral for the agreement. In the Event of Default the lessor may, by notice in writing to the City, declare the entire principal amount of the unpaid 2019 Agreement and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, lessor may terminate the Escrow Agreement and apply any proceeds in the Escrow Account to the Rental Payments scheduled to be paid hereunder. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:60 Menifee Mayor and City Council January 20,2021 Page 697 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -40- Note 6: Long-Term Liabilities (continued) Distribution Facilities Financing Agreement 2019 – Direct borrowing (continued): At June 30, 2020, the outstanding balance of the agreement was $6,499,912. The annual debt service requirements on these bonds are as follows: Year Ending June 30 Principal Interest Total 2021 346,987$ 275,805$ 622,792$ 2022 362,067 260,725 622,792 2023 377,803 244,989 622,792 2024 394,223 228,569 622,792 2025 411,358 211,435 622,793 2026-2030 2,341,022 772,939 3,113,961 2031-2035 2,266,452 224,718 2,491,170 Totals 6,499,912$ 2,219,180$ 8,719,092$ Compensated Absences The City’s liability for vested and unpaid compensated absences (accrued vacation and sick pay) in the governmental activities has been accrued and amounts to $825,050 at June 30, 2020. These liabilities have been described in Note 1. Note 7: Interfund Receivable, Payable and Transfers Due to/from other funds balances at June 30, 2020 were as follows: Nonmajor Governmental Funds Funds Due From Other Funds: General Fund 1,744,771$ These represent borrowings from other governmental funds to cover temporary cash deficit. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:61 Menifee Mayor and City Council January 20,2021 Page 698 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -41- Note 7: Interfund Receivable, Payable and Transfers (continued) Transfers in and out for the year ended June 30, 2020 were as follows: Transfers in Transfers out Amount General Fund Nonmajor Governmental Funds (a) 139,678$ Capital Projects Major Fund General Fund (b) 50,000 Nonmajor Governmental Funds (b) 9,457,597 Nonmajor Governmental Funds General Fund (c) 15,829 Nonmajor Governmental Funds (c) 1,814,718 Total transfers 11,477,822$ (a) (b) (c) Transfers made from General and Nonmajor Governmental Funds to other Nonmajor Funds were to pay for debt service and fund Citywide maintenance costs. Transfers made from Nonmajor Governmental Funds to the General Fund were to fund frontline Police services form the COPS Grants. Transfers made to fund Capital Projects throught the City. Note 8: Pension Plan A. General Information about the Pension Plan Plan Description All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors two rate plans (two miscellaneous). Benefit provisions under the Plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov. Benefits provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:62 Menifee Mayor and City Council January 20,2021 Page 699 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -42- Note 8: Pension Plan (continued) A. General Information about the Pension Plan (continued) Benefits provided (continued) The Plans operate under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plans’ authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board. The Plans’ provisions and benefits in effect at June 30, 2020 are summarized as follows: Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2.7% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 50 - 67 52 - 67 Monthly benefits, as a % of eligible compensations 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 7.952% 6.500% Required employer contribution rates 13.084% 7.266% Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2020 were $1,089,277. The actual employer payments of $1,360,520 made to CalPERS by the City during the measurement period ended June 30, 2019 differed from the City’s proportionate share of the employer’s contributions of $333,539 by $1,026,981, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:63 Menifee Mayor and City Council January 20,2021 Page 700 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -43- Note 8: Pension Plan (continued) B. Net Pension Liability The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2019, using an annual actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows. Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2018 Measurement Date June 30, 2019 Actuarial Cost Method Entry Age Normal in accordance with GASB 68 Asset Valuation Method: Market Value of Assets Discount Rate 7.15% Inflation 2.50% Salary Increase (1) Varies by Entry Dates Mortality Rate Table (2) Derived using CalPERS' membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.5% until purchasing power protection allowance floor on purchasing power applies, 2.5% thereafter (1) Annual increase vary by category, entry age, and duration of service (2) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the priod from 1997 to 2015. Pre-retirement and Post- retirement mortality rates include 15 years of projected morrtality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website, at www.calpers.ca.gov. The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:64 Menifee Mayor and City Council January 20,2021 Page 701 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -44- Note 8: Pension Plan (continued) B. Net Pension Liability (continued) Long-term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short- term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows: Asset Class1 New Strategic Allocation Real Return Years 1 - 102 Real Return Year 11+3 Global equity 50.0% 4.80% 5.98% Fixed income 28.0% 1.00% 2.62% Inflation assets 0.0% 0.77% 1.81% Private Equity 8.0% 6.30% 7.23% Real Estate 13.0% 3.75% 4.93% Liquidity 1.0% 0.00% (0.92%) Total 100.0% 1 In the System's CAFR, fixed income is included in global debt securities; liquidity is inclued in short- term investments; inflation assets are inclued in both global equity securities and global debt securities. 2 An expected inflation of 2.0% used for this period 3 An expected inflation of 2.92% used for this period Change of Assumptions There were no changes in assumptions. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:65 Menifee Mayor and City Council January 20,2021 Page 702 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -45- Note 8: Pension Plan (continued) B. Net Pension Liability (continued) Discount Rate The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Pension Plan Fiduciary Net Position Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and Other Post-Employment Benefits (OPEB) expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves. C. Proportionate Share of Net Pension Liability The following table shows the Plan’s proportionate share of the net pension liability over the measurement period. Plan Total Pension Liability (a) Plan Fiduciary Net Position (b) Plan Net Pension Liability (c) = (a) - (b) Balance at: 6/30/2018 (VD) 6,180,473$ 5,680,704$ 499,769$ Balance at: 6/30/2019 (MD) 8,073,102 8,049,504 23,598 Net changes during 2018-2019 1,892,629$ 2,368,800$ (476,171)$ Increase (Decrease) Valuation Date (VD), Measurement Date (MD). Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:66 Menifee Mayor and City Council January 20,2021 Page 703 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -46- Note 8: Pension Plan (continued) C. Proportionate Share of Net Pension Liability (continued) The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2019, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the Miscellaneous Plan as of the June 30, 2018 and 2019 measurement dates was as follows: Proportion - June 30, 2018 0.01326% Proportion - June 30, 2019 0.00059% Change - Increase (Decrease) (0.01267%) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate: Discount Rate - 1% (6.15%) Current Discount Rate (7.15%) Discount Rate + 1% (8.15%) Plan's Net Pension Liability (Asset)1,109,455$ 23,598$ (872,700)$ The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:67 Menifee Mayor and City Council January 20,2021 Page 704 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -47- Note 8: Pension Plan (continued) C. Proportionate Share of Net Pension Liability (continued) Subsequent Events There were no subsequent events that would materially affect the results presented in this disclosure. Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss: Difference between projected and actual earnings 5 year straight-line amortization All other amounts Straight-line amortization over the average expected remaining services lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C). The EARSL for PERF C for the measurement period ending June 30, 2019 is 3.8 years, which was obtained by dividing the total service years of 530,470 (the sum of remaining service lifetimes of the active employees) by 140,593 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund. The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:68 Menifee Mayor and City Council January 20,2021 Page 705 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -48- Note 8: Pension Plan (continued) D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2018), the City’s net pension liability was $499,769. For the measurement period ending June 30, 2019 (the measurement date), the City incurred a pension expense of $890,645. As of June 30, 2020, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Resources Deferred Inflows of Resources Changes of Assumptions 1,125$ 399$ Differences between expected and actual experience 1,639 127 Differences between Projected and Actual Investment Earnings - 413 Differences between Employer's Contributions and Proportionate Share of Contributions 964,305 - Change in Employer's Proportion 224,495 307,765 Pension Contributions Made Subsequent to Measurement Date - Total 2,280,841$ 308,704$ 1,089,277 These amounts above are net of outflows and inflow recognized in the 2018-19 measurement period expense. Contributions subsequent to the measurement date of $1,089,277 reported within deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows: Fiscal Year Ended June 30: Deferred Outflows/(Inflows) of Resources, Net 2021 485,981$ 2022 268,327 2023 128,469 2024 83 2025 - Thereafter - E. Payable to the Pension Plan At June 30, 2020, the City reported a payable of $-0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2020. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:69 Menifee Mayor and City Council January 20,2021 Page 706 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -49- Note 9: Other Post-Employment Benefits Plan Description The City has established a single-employer Retiree Healthcare Plan (HC Plan). This coverage is available for employees who satisfy the requirements for retirement under the California Public Employees Retirement System (PERS), which is age 50 or older with at least five years of State or public agency service. The healthcare coverage provided by PERS meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement No. 45. Medical plan benefits are provided through PERS, as permitted by the Public Employees’ Medical and Hospital and Care Act (PEMHCA). A separate financial report is not prepared for the HC Plan. Employees Covered As of the June 30, 2019 actuarial valuation, the following current and former employees were covered by the benefit terms under the HC Plan: Active employees 186 Inactive employees or beneficiaries currently receiving benefits 2 Total 188 Contributions The HC Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. For the fiscal year ended June 30, 2020, the City’s cash contributions were $2,116 in payments for benefits. Net OPEB Liability The City’s net OPEB liability was measured as of June 30, 2019 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, based on the following actuarial methods and assumptions: Discount Rate 3.50% Inflation 2.75% Salary Increases 2.75% per year Investment Rate of Return 3.50% Mortality Rate 2009 CalPERS Mortality for Active Miscellaneous Employees Pre-Retirement Turnover Healthcare Trend Rate 4.0% per year Discount Rate The discount rate used to measure the total OPEB liability was 3.50% percent. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:70 Menifee Mayor and City Council January 20,2021 Page 707 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -50- Note 9: Other Post-Employment Benefits (continued) Changes in OPEB Liability The changes in the net OPEB liability for the HC Plan are as follows: Total OPEB Liability (a) Plan Fiduciary Net Position (B) Net OPEB Liability/(Asset) (c)= (a) - (b) Balance at June 30, 2018 (Valuation Date June 30, 2017) 250,648$ -$ 250,648$ Changes recognized for the measurement period: Service Cost 71,218 - 71,218 Interest 10,868 - 10,868 Changes of assumptions 453,877 - 453,877 Plan experience differences 91,138 - 91,138 Contributions - employer - 775 (775) Net investment income - - - Benefit payments (775) (775) - Net Changes 626,326 - 626,326 Balance at June 30, 2019 (Measurement Date June 30, 2018) 876,974$ -$ 876,974$ Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2019: 1% Decrease (2.5%) Current Discount Rate (3.5%) 1% Increase (4.5%) Net OPEB Liability 1,041,188$ 876,974$ 756,384$ Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the Authority if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2019: 1% Decrease Current Healthcare Cost Trend Rates 1% Increase Net OPEB Liability 734,758$ 876,974$ 1,085,604$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:71 Menifee Mayor and City Council January 20,2021 Page 708 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -51- Note 9: Other Post-Employment Benefits (continued) Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The City determined that it was not reasonable to rerun prior valuations under GASB 75. Therefore, the transition approach was used as provided in GASB 75, Paragraph 244. This means that there are no deferred inflows/outflows in the first year of implementation of GASB 75 with the exception of employer contributions after the measurement date. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2020, the City recognized OPEB expense of $106,520. The City reported deferred outflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources OPEB contributions subsequent to measurement date 2,116$ -$ Changes of assumptions 420,837 - Experience differences 86,938 - Total 509,891$ -$ The $2,116 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2019 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in future OPEB expense as follows: Fiscal Year Ended June 30: Deferred Outflows/(Inflows) of Resources 2021 24,434$ 2022 24,434 2023 24,434 2024 24,434 2025 24,434 Thereafter: 385,605 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:72 Menifee Mayor and City Council January 20,2021 Page 709 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -52- Note 10: Risk Management The City of Menifee (“City”) is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the Member Entity obtains insurance coverage. The City is a member of the Public Agency Risk Sharing Authority of California-PARSAC (Authority), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers’ compensation, and property claims. Under the program, the City has a $ 25,000 retention limit similar to a deductible with the Authority being responsible for losses above that amount up to $1 million. The Authority has additional coverage of $49 million in excess of its $1 million retention limit through affiliated risk management authorities. The Authority also provides one billion dollars aggregate per occurrence property coverage to its members with such coverage provided by purchased insurance. Liabilities of the City are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. The Authority covers workers’ compensation claims up to its self-insurance limit of $500,000. The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The City pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority’s operating results. Financial statements of the Public Agency Risk Sharing Authority of California (PARSAC) may be obtained from its administrative office located at 1525 Response Road, Suite One, Sacramento, California, 95815; www.parsac.org or by calling (916) 927-7727. The remainder of this page left intentionally blank Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:73 Menifee Mayor and City Council January 20,2021 Page 710 of 828 CITY OF MENIFEE NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -53- Note 11: Commitments and Contingencies Litigation The City is involved as a defendant in various legal proceedings. While it is not feasible to predict or determine the outcome in these cases, it is the opinion of the City that the outcome will have no material adverse effect on the financial position of the City. Grants The City has received State and Federal funds for specific purposes that are subject to audit by the grantor agencies. Although such audits could generate expenditure disallowances under the terms of the grants, it is believed that any required reimbursements will not be material. COVID-19 considerations On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of businesses and shelter in place orders for all but those deemed essential services. While the business disruption is currently expected to be temporary, there is considerable uncertainty around the duration of the closings and shelter in place orders. As a result, the outbreak has caused uncertainty in the financial markets. Although the City's services are considered essential, the City Hall was temporarily closed to the public, certain other services transitioned to online-only and because the City's major revenue sources, including businesses that collect sales taxes, are directly impacted by these events, it is possible that this matter will negatively impact the future revenues of the City. However, the ultimate financial impact and duration cannot be estimated at this time, and no adjustments have been made to these financial statements as a result of this uncertainty. Construction Commitments No material construction commitments existed at June 30, 2020. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:74 Menifee Mayor and City Council January 20,2021 Page 711 of 828   REQUIRED SUPPLEMENTARY INFORMATION Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:75 Menifee Mayor and City Council January 20,2021 Page 712 of 828 CITY OF MENIFEE REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -54- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 35,136,272$ 35,136,272$ 35,136,272$ -$ Resources (Inflows): Taxes 38,298,000 39,187,353 43,230,255 4,042,902 Licenses and permits 8,748,235 8,617,735 10,011,450 1,393,715 Intergovernmental 7,118,975 7,151,025 7,246,904 95,879 Charges for services 2,009,550 2,263,000 3,127,661 864,661 Use of money and property 440,000 570,000 852,864 282,864 Fines and forfeitures 658,000 708,000 598,244 (109,756) Miscellaneous 129,750 90,000 117,986 27,986 Transfers in 6,669,920 6,669,920 139,678 (6,530,242) Amounts Available for Appropriation 99,208,702 100,393,305 100,461,314 68,009 Charges for Appropriation (Outflows): General government 9,877,164 10,572,206 9,348,685 1,223,521 Public safety 36,326,481 35,815,769 33,199,921 2,615,848 Community development 6,457,438 6,658,381 5,196,946 1,461,435 Parks and recreation 2,539,241 2,443,482 1,993,991 449,491 Engineering and public works 5,718,496 6,139,158 4,570,234 1,568,924 Capital outlay 1,593,000 6,486,826 4,479,632 2,007,194 Transfers out 3,215,784 3,222,086 65,829 3,156,257 Total Charges to Appropriations 65,727,604 71,337,908 58,855,238 12,482,670 Budgetary Fund Balance, June 30 33,481,098$ 29,055,397$ 41,606,076$ 12,550,679$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:76 Menifee Mayor and City Council January 20,2021 Page 713 of 828 CITY OF MENIFEE REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE DEVELOPMENT IMPACT FEES – SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -55- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 32,692,464$ 32,692,464$ 32,692,464$ -$ Resources (Inflows): Use of money and property 271,380 271,380 611,453 340,073 Developer participation 6,125,098 4,844,298 5,559,177 714,879 Amounts Available for Appropriation 39,088,942 37,808,142 38,863,094 1,054,952 Charges for Appropriation (Outflows): General government 2,250,000 2,250,000 50,000 2,200,000 Parks and recreation 10,000 10,000 - 10,000 Engineering and public works 5,522,973 11,546,199 3,797,798 7,748,401 Capital outlay 9,994,165 14,437,747 3,580,570 10,857,177 Total Charges to Appropriations 17,777,138 28,243,946 7,428,368 20,815,578 Budgetary Fund Balance, June 30 21,311,804$ 9,564,196$ 31,434,726$ 21,870,530$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:77 Menifee Mayor and City Council January 20,2021 Page 714 of 828 CITY OF MENIFEE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE PENSION PLAN’S NET PENSION LIABILITY AND RELATED RATIOS AS OF THE MEASUREMENT DATE LAST TEN YEARS* -56- Measurement Date Employer's Proportion of the Collective Net Pension Liability1 Employer's Proportionate Share of the Collective Net Pension Liability Employer's Covered Payroll Employer's Proportionate Share of the Collective Net Pension Liability as a Percentage of the Employer's Covered Payroll Pension's Plans Fiduciary Net Position as a Percentage of the Total Pension Liability 6/30/2014 0.00921% 288,345$ 2,658,666$ 10.85% 83.02% 6/30/2015 0.00368% 252,740 3,376,969 7.48% 89.51% 6/30/2016 0.00420% 363,319 4,222,698 8.60% 89.67% 6/30/2017 0.00556% 551,431 4,350,553 12.67% 88.92% 6/30/2018 0.00519% 499,769 5,130,794 9.74% 91.91% 6/30/2019 0.00023% 23,598 6,773,265 0.35% 99.71% both the Miscellaneous and Safety Risk pools excluding the 1959 Survivors Risk Pool. * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available. 1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:78 Menifee Mayor and City Council January 20,2021 Page 715 of 828 CITY OF MENIFEE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE PENSION PLAN’S CONTRIBUTIONS LAST TEN YEARS* -57- Fiscal Year Actuarially Determined Contributions Contributions in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Employer's Covered Payroll Contributions as a Percentage of Covered Payroll 6/30/2015 525,168$ (525,168)$ -$ 3,376,969$ 15.55% 6/30/2016 447,484 (447,484) - 4,222,698 10.60% 6/30/2017 461,164 (461,164) - 4,350,553 10.60% 6/30/2018 524,088 (524,088) - 5,130,794 10.21% 6/30/2019 1,360,520 (1,360,520) - 6,773,265 20.09% 6/30/2020 1,089,277 (1,089,277) - 10,202,569 10.68% Notes to Schedule: Change in Benefit Terms: None * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available. Changes in Assumptions: There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:79 Menifee Mayor and City Council January 20,2021 Page 716 of 828 CITY OF MENIFEE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN YEARS* -58- Measurement Period 2019 2018 2017 Total OPEB Liability Service Cost 71,218$ 74,816$ 72,814$ Interest on the Total OPEB Liability 10,868 8,305 4,869 Actual and expected experience difference 91,138 - - Changes in assumptions 453,877 (13,488) - Changes in benefit terms - - - Benefit payments (775) (256) (246) Net change in Total OPEB Liability 626,326 69,377 77,437 Total OPEB Liability - beginning 250,648 181,271 103,834 Total OPEB Liability - ending (a)876,974 250,648 181,271 Plan Fiduciary Net Position Contribution - employer 775 256 246 Net investment income - - - Benefit payments (775) (256) (246) Administrative expense - - - Net change in Plan Fiduciary Net Position - - - Plan Fiduciary Net Position - beginning - - - Plan Fiduciary Net Position - ending (b)- - - Net OPEB Liability - ending (a) - (b)876,974$ 250,648$ 181,271$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% Covered employee payroll 6,773,265$ 5,130,794$ 4,350,553$ Net OPEB liability as a percentage of covered employee payroll 12.95% 4.89% 4.17% Notes to schedule: Changes Since the Prior Valuation: Fiscal year 2017-18 was the first year of implementation. * Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available. The discount rate of 3.5% was used in the valuation. The interest rate used in the prior valuation was 3.8%. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:80 Menifee Mayor and City Council January 20,2021 Page 717 of 828 CITY OF MENIFEE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF OPEB CONTRIBUTIONS LAST TEN YEARS* -59- Fiscal Year Ended June 30 2020 2019 2018 Contractual Determined Contributions (CDC) 2,116$ 775$ 521$ Contributions in relation to the CDC (2,116) (775) (521) Contribution deficiency/(excess) -$ -$ -$ Covered employee payroll 10,202,569$ 6,773,265$ 5,130,794$ Contribution as a percentage of covered payroll 0.02% 0.01% 0.01% Notes to schedule: Methods and assumptions used to determine contributions: 2020 2019 2018 Discount Rate 3.50% 3.80% 3.80% Inflation 2.75% 2.75% 2.75% Salary Increases 2.75% per year 2.75% per year 2.75% per year Investment Rate of Return 3.50% 3.80% 3.80% Mortality Rate 2009 CalPERS 2009 CalPERS 2009 CalPERS Pre-Retirement Turnover 4.0% per year 4.0% per year 4.0% per year Fiscal year 2017-18 was the first year of implementation. * Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:81 Menifee Mayor and City Council January 20,2021 Page 718 of 828 CITY OF MENIFEE REQUIRED SUPPLEMENTARY INFORMATION NOTES -60- Notes to the Required Supplementary Information: Budget Basis of Accounting Budgets for all governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:82 Menifee Mayor and City Council January 20,2021 Page 719 of 828   THIS PAGE INTENTIONALLY LEFT BLANK Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:83 Menifee Mayor and City Council January 20,2021 Page 720 of 828   SUPPLEMENTAL SCHEDULES Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:84 Menifee Mayor and City Council January 20,2021 Page 721 of 828   THIS PAGE INTENTIONALLY LEFT BLANK Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:85 Menifee Mayor and City Council January 20,2021 Page 722 of 828 -61- NON-MAJOR GOVERNMENTAL FUNDS DESCRIPTIONS SPECIAL REVENUE FUNDS Gas Tax Used to account for revenue and expenditures of money apportioned under Street and Highways Code, Sections 2103, 2105, 2106, 2107 and 2107.5 of the State of California. These funds are earmarked for maintenance, rehabilitation or improvement of public streets. Section 2107.5 funds can be used for engineering and gas tax audit costs. In addition, beginning in FY 2010/11, the new excise tax on fuel, which took the place of Traffic Congestion Relief/Proposition 42 funds, is recorded in the Gas Tax Fund. SB1 Used to account for revenue and expenditures of the Road Maintenance and Rehabilitation Account to address deferred maintenance on the State Highway System and the local streets and road system. A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. Measure A Represents funds apportioned by the Riverside County Transportation Commission (RCTC) and received by the City as a result of the voter-approved initiative that increased sales tax by 1/2 percent in Riverside County to fund transportation projects. Measure "A" funds were originally approved by voters in 1988, and an extension was approved in 2002 which will fund projects through 2039. Air Quality Management District This fund was established to account for the City's share of vehicle registration fees collected under Assembly Bill 2766 passed during the 1990 State Legislative session. This fee was levied to fund programs to reduce air pollution from mobile sources such as cars, trucks and buses. Allocations to agencies are made through an apportionment basis and also through a competitive process. The South Coast Air Quality Management District distributes these funds to the City. Grants This fund accounts for all of the various miscellaneous grants, in order to properly segregate and track grant funding. Grants are budgeted upon being awarded by a third party agency and approved by the City Council. Only grants that are approved at the time of the adoption of this budget are listed in this budget document. Landscape and Lighting Maintenance Upon incorporation, the City acquired the responsibility of a portion of one LLMD which included both street lighting and traffic signals. In January 2015, the City requested from the County of Riverside to become solely responsible for all LLMDs located exclusively within the City jurisdiction. This resulted in the City acquiring 24 individual LLMD zones. These LLMDs had originally been established by Riverside County prior to the City's incorporation, and maintained responsibility for the maintenance of these zones until January 2015. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:86 Menifee Mayor and City Council January 20,2021 Page 723 of 828 -62- CFD Audie Murphy Ranch In January 2012 the Audie Murphy Ranch Community Facility District (CFD) was formed. This CFD encompasses approximately 1,059.3 gross acres and upon full build out will contain approximately 2,129 residential dwelling units. Each July 1, commencing on July 1, 2013, the maximum special tax for developed property 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. The assessed fees will be used towards street lighting, landscaping, street sweeping, water quality basin improvements, parks, trails and recreation improvements. CFD Hidden Hills In June 2012 the Hidden Hills Community Facility District (CFD) was formed. This CFD boundary includes approximately 157 gross acres and upon full build out will contain 511 single family homes. Services provided by the CFD include landscape maintenance, park and trails maintenance, as well as incidental costs such as capital replacement and administrative costs. The maximum special tax for developed property 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. CFD 2014-1 Town Center In August 2014 the Menifee Town Center Community Facility District (CFD) was formed. This CFD encompasses approximately 149 gross acres of mix use development consisting of retail, commercial and residential housing units Beginning July 1, 2015 and each year thereafter, the maximum special tax for developed property 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. The assessed fees will be used towards street lighting, landscaping, street sweeping, water quality basin improvements, parks, trails and recreation improvements. TUMF Fees This fund tracks revenues and expenditures associated with the regional transportation mitigation fee program. These funds are generated from impact fees assessed by Western Riverside Council of Governments (WRCOG) on all new residential and commercial development. These funds are later divided among the three (3) zones comprising of the Northern, Central and Southern zones. The City of Menifee is located within the Central zone along with the Cities of Perris, Moreno Valley and Riverside County. The City is eligible to receive TUMF funds on major road and bridge projects located within the City. These projects must first be approved by WRCOG and the Central zone Technical Advisory Committee (TAC). The City uses these funds to supplement capital projects relating to road and bridge improvements and they are treated as grant funding. CFD 2014-2 Commerce Point In August 2014 the Commerce Point Community Facility District (CFD) was formed. This CFD boundary includes approximately 46 taxable acres of commercial real estate. Services provided by the CFD include landscape maintenance, street lighting, water quality improvements, graffiti removal, street sweeping, and park and trails maintenance. On July 1 of each year, and commencing July 1, 2016, the maximum special tax for developed properly shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%) per fiscal year. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:87 Menifee Mayor and City Council January 20,2021 Page 724 of 828 -63- 2015-2 Citywide CFD In April 2015 the City-Wide Community Facility District (CFD) was formed under Resolution No. 15- 430. CFD No. 2015-2 (Maintenance Services) currently consists of one Tax Zone consisting of one residential tract that will include 359 residential units. Services provided by the CFD include landscape maintenance, street lighting, water quality improvements, graffiti removal, public street sweeping, and park and trails maintenance. On July 1 of each year, and commencing July 1, 2016, the maximum special tax for developed property shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%) per fiscal year. 2017-1 Maintenance Services CFD In December 2017 the Community Facilities District (CFD) 2017-1 was formed. This CFD boundary includes approximately 104 acres of vacant commercial and residential property within the City (TR 36299-1 and PM 9504). The improvements proposed to be maintained include items such as landscaping, lighting, storm drains, water quality improvements, graffiti, streets, street lights, traffic signals, street sweeping, and trail maintenance. On July 1 of each year, and commencing July 1, 2019, the maximum special tax for developed property shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%), whichever is greater, per fiscal year. Public Education and Government Access This fund will be used to acquire equipment for and broadcasting on a future City cable channel. Used to account for revenue and expenditures of money pursuant to section 611 of the Communications Act. Local Franchising authorities (The City) may require cable operations to remit funds and set aside channels for public, educational, or governmental use. County Service Areas (CSA) Upon incorporation, the City assumed responsibility for seven (7) County Service Area Districts within the City limits. These districts were established by the County of Riverside to provide a mechanism through special assessments to fund services such as street lighting, street sweeping, park maintenance, road maintenance, and law enforcement services to property owners within each district. Each CSA fund provides a unique set of services to the residents within that individual district. DEBT SERVICE FUND Debt Service Debt Service Funds are used to track revenues and expenditures related to repayment of principal and interest costs associated with borrowing money for long-term obligations. In May 2012 the City issued Certificates of Participation in the amount of $20.0 million under the Total Road Improvement Program (TRIP) financing. These proceeds were used for the construction of the Newport Road/I-215 interchange and will be paid back over a 30 year period. Currently, the City has only one outstanding debt accounted for in this fund. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:88 Menifee Mayor and City Council January 20,2021 Page 725 of 828 CITY OF MENIFEE COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2020 -64- Gas Tax SB1 Measure A Assets Cash and investments 645,021$ 1,326,577$ 1,435,273$ Receivables: Accounts, grants and taxes 64,896 247,165 362,716 Accrued interest 2,802 - 986 Restricted assets: Cash and investments with fiscal agents - - - Total Assets 712,719$ 1,573,742$ 1,798,975$ Liabilities: Accounts payable 473,011$ 1,220,537$ 1,111,750$ Accrued liabilities 16,468 - - Due to other funds - - - Total Liabilities 489,479 1,220,537 1,111,750 Deferred Inflows of Resources: Unavailable revenues - - - Total Deferred Inflows of Resources - - - Fund Balances: Nonspendable: Restricted for: Community development projects - - - Engineering and public works 223,240 353,205 687,225 Debt service - - - Unassigned (deficit)- - - Total Fund Balances 223,240 353,205 687,225 712,719$ 1,573,742$ 1,798,975$ Special Revenue Funds Liabilities, Deferred Inflows of Resources and Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:89 Menifee Mayor and City Council January 20,2021 Page 726 of 828 CITY OF MENIFEE COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS (continued) JUNE 30, 2020 -65- Air Quality Landscape CFD CFD Management and Lighting Audie Murphy Hidden District Grants Maintenance Ranch Hills 25,718$ 66,910$ 3,226,226$ 2,038,586$ 469,317$ 29,247 963,931 31,640 9,109 1,443 201 - 6,810 5,215 874 - - - - - 55,166$ 1,030,841$ 3,264,676$ 2,052,910$ 471,634$ -$ 663,410$ 56,165$ 45,467$ 19,089$ - 1,981 4,377 10,278 636 - 74,157 208,748 - - - 739,548 269,290 55,745 19,725 - - - - - - - - - - - - - 1,997,165 451,909 55,166 291,293 2,995,386 - - - - - - - - - - - - 55,166 291,293 2,995,386 1,997,165 451,909 55,166$ 1,030,841$ 3,264,676$ 2,052,910$ 471,634$ Special Revenue Funds Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:90 Menifee Mayor and City Council January 20,2021 Page 727 of 828 CITY OF MENIFEE COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS (continued) JUNE 30, 2020 -66- CFD CFD 2014-1 Town TUMF 2014-2 Commerce Center Fees Point Assets Cash and investments 134,505$ 111,027$ 52,226$ Receivables: Accounts, grants and taxes - 593,600 - Accrued interest 265 7,494 20 Restricted assets: Cash and investments with fiscal agent - - - Total Assets 134,770$ 712,121$ 52,246$ Liabilities: Accounts payable 185$ 50,391$ 1,874$ Accrued liabilities - - - Due to other funds - - - Total Liabilities 185 50,391 1,874 Deferred Inflows of Resources: Unavailable revenues - 593,600 - Total Deferred Inflows of Resources - 593,600 - Fund Balances: Nonspendable: Restricted for: Community development projects 134,585 68,130 50,372 Engineering and public works - - - Debt service - - - Unassigned (deficit)- - - Total Fund Balances 134,585 68,130 50,372 134,770$ 712,121$ 52,246$ Special Revenue Funds Liabilities, Deferred Inflows of Resources and Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:91 Menifee Mayor and City Council January 20,2021 Page 728 of 828 CITY OF MENIFEE COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS (continued) JUNE 30, 2020 -67- Debt Service Fund Total CFD Public, Non-Major 2015-2 2017-1 Maintenance Education and County Governmental Citywide CFD Services Governmental Acess Service Areas Debt Service Funds 1,252,576$ 244,469$ 386,458$ 1,610,845$ 211,076$ 13,236,810$ 2,736 325 44,088 84,381 - 2,435,277 - - - 5,100 1,615 31,382 - - - - 1,359,581 1,359,581 1,255,312$ 244,794$ 430,546$ 1,700,326$ 1,572,272$ 17,063,050$ 27,780$ 19,185$ 11,439$ 288,953$ -$ 3,989,236$ 3,986 290 - 8,194 - 46,210 724 - - 1,461,142 - 1,744,771 32,490 19,475 11,439 1,758,289 - 5,780,217 - - - - - 593,600 - - - - - 593,600 - 1,222,822 225,319 419,107 - 4,569,409 - - - - - 4,605,515 - - - - 1,572,272 1,572,272 - - - (57,963) - (57,963) 1,222,822 225,319 419,107 (57,963) 1,572,272 10,689,233 1,255,312$ 244,794$ 430,546$ 1,700,326$ 1,572,272$ 17,063,050$ Special Revenue Funds Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:92 Menifee Mayor and City Council January 20,2021 Page 729 of 828 CITY OF MENIFEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -68- Gas Tax SB1 Measure A Revenues Taxes -$ -$ -$ Intergovernmental 2,021,161 1,723,637 1,883,734 Charges for services - - - Use of money and property 18,327 488 6,559 Total Revenues 2,039,488 1,724,125 1,890,293 Expenditures Current: General government - - - Public safety - - - Parks and recreation - - - Engineering and public works 2,510,289 2,216,508 1,111,749 Capital outlay 386,595 - - Debt service: Principal retirement - - - Interest and fiscal charges - - - Total Expenditures 2,896,884 2,216,508 1,111,749 Excess (Deficiency) of Revenues Over (Under) Expenditures (857,396) (492,383) 778,544 Other Financing Sources (Uses) Transfers in - - - Transfers out (5,815) - (1,304,089) Total Other Financing Sources (Uses)(5,815) - (1,304,089) Net Change in Fund Balances (863,211) (492,383) (525,545) Fund Balances, Beginning of Year 1,086,451 845,588 1,212,770 Fund Balances, End of Year 223,240$ 353,205$ 687,225$ Special Revenue Funds Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:93 Menifee Mayor and City Council January 20,2021 Page 730 of 828 CITY OF MENIFEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -69- Air Quality Landscape CFD CFD Management and Lighting Audie Murphy Hidden District Grants Maintenance Ranch Hills -$ -$ -$ -$ -$ 116,555 1,658,282 - - - - - 818,473 1,084,588 136,182 1,878 - 44,550 34,166 5,719 118,433 1,658,282 863,023 1,118,754 141,901 - 452,174 40,936 7,973 7,634 - 1,955 - - - - 2,048 500,577 722,414 63,477 - 902,037 55,422 48,887 - 135,354 60,836 - 32,006 4,651 - - - - - - - - - - 135,354 1,419,050 596,935 811,280 75,762 (16,921) 239,232 266,088 307,474 66,139 - - - - - - (139,676) (7,058) (6,357) - - (139,676) (7,058) (6,357) - (16,921) 99,556 259,030 301,117 66,139 72,087 191,737 2,736,356 1,696,048 385,770 55,166$ 291,293$ 2,995,386$ 1,997,165$ 451,909$ Special Revenue Funds Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:94 Menifee Mayor and City Council January 20,2021 Page 731 of 828 CITY OF MENIFEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -70- CFD CFD 2014-1 Town TUMF 2014-2 Commerce Center Fees Point Revenues Taxes -$ -$ -$ Intergovernmental - 700,405 - Charges for services 17,183 - 15,050 Use of money and property 1,731 53,276 128 Total Revenues 18,914 753,681 15,178 Expenditures Current: General government 1,302 - 2,024 Public safety - - - Parks and recreation 2,591 - - Engineering and public works 328 773,069 8,969 Capital outlay - - - Debt service: Principal retirement - - - Interest and fiscal charges - - - Total Expenditures 4,221 773,069 10,993 Excess (Deficiency) of Revenues Over (Under) Expenditures 14,693 (19,388) 4,185 Other Financing Sources (Uses) Transfers in - - - Transfers out - (2,984,597) - Total Other Financing Sources (Uses)- (2,984,597) - Net Change in Fund Balances 14,693 (3,003,985) 4,185 Fund Balances, Beginning of Year 119,892 3,072,115 46,187 Fund Balances, End of Year 134,585$ 68,130$ 50,372$ Special Revenue Funds Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:95 Menifee Mayor and City Council January 20,2021 Page 732 of 828 CITY OF MENIFEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -71- Debt Service Fund Total CFD Public, Non-Major 2015-2 2017-1 Maintenance Education and County Governmental Citywide CFD Services Governmental Acess Service Areas Debt Service Funds -$ -$ -$ 881,117$ -$ 881,117$ - - - - - 8,103,774 750,925 170,792 180,975 1,876,082 - 5,050,250 79 - - 45,455 26,328 238,684 751,004 170,792 180,975 2,802,654 26,328 14,273,825 - 6,384 11,439 30,365 22,559 582,790 - - - 667,604 - 669,559 34,632 - - 657,749 - 1,983,488 160,856 65,451 - 1,801,249 - 9,654,814 8,561 - - 1,000 - 629,003 - - - - 475,088 475,088 - - - - 1,140,397 1,140,397 204,049 71,835 11,439 3,157,967 1,638,044 15,135,139 546,955 98,957 169,536 (355,313) (1,611,716) (861,314) 58,086 - - - 1,772,461 1,830,547 (58,384) (1,605) - (431,412) (6,473,000) (11,411,993) (298) (1,605) - (431,412) (4,700,539) (9,581,446) 546,657 97,352 169,536 (786,725) (6,312,255) (10,442,760) 676,165 127,967 249,571 728,762 7,884,527 21,131,993 1,222,822$ 225,319$ 419,107$ (57,963)$ 1,572,272$ 10,689,233$ Special Revenue Funds Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:96 Menifee Mayor and City Council January 20,2021 Page 733 of 828     THIS PAGE INTENTIONALLY LEFT BLANK Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:97 Menifee Mayor and City Council January 20,2021 Page 734 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE GAS TAX FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -72- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 1,086,451$ 1,086,451$ 1,086,451$ -$ Resources (Inflows): Intergovernmental 2,294,362 2,363,207 2,021,161 (342,046) Use of money and property 15,000 15,000 18,327 3,327 Amounts Available for Appropriation 3,395,813 3,464,658 3,125,939 (338,719) Charges for Appropriation (Outflows): Engineering and public works 2,673,771 2,722,327 2,510,289 212,038 Capital outlay 242,000 392,732 386,595 6,137 Transfers out 3,500 5,815 5,815 - Total Charges to Appropriations 2,919,271 3,120,874 2,902,699 218,175 Budgetary Fund Balance, June 30 476,542$ 343,784$ 223,240$ (120,544)$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:98 Menifee Mayor and City Council January 20,2021 Page 735 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE SB1 FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -73- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 845,588$ 845,588$ 845,588$ -$ Resources (Inflows): Intergovernmental 1,624,766 1,826,736 1,723,637 (103,099) Use of money and property 100 100 488 388 Amounts Available for Appropriation 2,470,454 2,672,424 2,569,713 (102,711) Charges for Appropriation (Outflows): Engineering and public works - 2,283,114 2,216,508 66,606 Capital outlay 968,000 - - - Transfers out 1,315,114 - - - Total Charges to Appropriations 2,283,114 2,283,114 2,216,508 66,606 Budgetary Fund Balance, June 30 187,340$ 389,310$ 353,205$ (36,105)$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:99 Menifee Mayor and City Council January 20,2021 Page 736 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE MEASURE A FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -74- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 1,212,770$ 1,212,770$ 1,212,770$ -$ Resources (Inflows): Intergovernmental 1,847,000 1,847,000 1,883,734 36,734 Use of money and property 2,000 2,000 6,559 4,559 Amounts Available for Appropriation 3,061,770 3,061,770 3,103,063 41,293 Charges for Appropriation (Outflows): Engineering and public works - 1,545,000 1,111,749 433,251 Capital outlay 968,000 - - - Transfers out 1,304,088 1,304,089 1,304,089 - Total Charges to Appropriations 2,272,088 2,849,089 2,415,838 433,251 Budgetary Fund Balance, June 30 789,682$ 212,681$ 687,225$ 474,544$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:100 Menifee Mayor and City Council January 20,2021 Page 737 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE AIR QUALITY MANAGEMENT DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -75- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 72,087$ 72,087$ 72,087$ -$ Resources (Inflows): Intergovernmental 118,475 118,475 116,555 (1,920) Use of money and property 1,500 1,500 1,878 378 Amounts Available for Appropriation 192,062 192,062 190,520 (1,542) Charges for Appropriation (Outflows): Capital outlay 143,000 183,000 135,354 47,646 Total Charges to Appropriations 143,000 183,000 135,354 47,646 Budgetary Fund Balance, June 30 49,062$ 9,062$ 55,166$ 46,104$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:101 Menifee Mayor and City Council January 20,2021 Page 738 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE GRANTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -76- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 191,737$ 191,737$ 191,737$ -$ Resources (Inflows): Intergovernmental 708,674 4,853,495 1,658,282 (3,195,213) Amounts Available for Appropriation 900,411 5,045,232 1,850,019 (3,195,213) Charges for Appropriation (Outflows): General government 276,883 805,217 452,174 353,043 Public safety 17,906 19,145 1,955 17,190 Parks and recreation - 4,693 2,048 2,645 Engineering and public works - 3,768,663 902,037 2,866,626 Capital outlay 274,210 327,740 60,836 266,904 Transfers out 139,675 139,676 139,676 - Total Charges to Appropriations 708,674 5,065,134 1,558,726 3,506,408 Budgetary Fund Balance, June 30 191,737$ (19,902)$ 291,293$ 311,195$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:102 Menifee Mayor and City Council January 20,2021 Page 739 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -77- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 2,736,356$ 2,736,356$ 2,736,356$ -$ Resources (Inflows): Charges for services 811,533 856,533 818,473 (38,060) Use of money and property 18,885 18,885 44,550 25,665 Amounts Available for Appropriation 3,566,774 3,611,774 3,599,379 (12,395) Charges for Appropriation (Outflows): General government 46,882 45,932 40,936 4,996 Parks and recreation 536,445 557,610 500,577 57,033 Engineering and public works 189,697 182,589 55,422 127,167 Capital outlay 48,146 46,525 - 46,525 Transfer out 4,248 7,058 7,058 - Total Charges to Appropriations 825,418 839,714 603,993 235,721 Budgetary Fund Balance, June 30 2,741,356$ 2,772,060$ 2,995,386$ 223,326$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:103 Menifee Mayor and City Council January 20,2021 Page 740 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT – AUDIE MURPHY RANCH FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -78- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 1,696,048$ 1,696,048$ 1,696,048$ -$ Resources (Inflows): Charges for services 929,848 1,061,882 1,084,588 22,706 Use of money and property 20,000 20,000 34,166 14,166 Amounts Available for Appropriation 2,645,896 2,777,930 2,814,802 36,872 Charges for Appropriation (Outflows): General government 8,950 8,950 7,973 977 Parks and recreation 590,798 807,305 722,414 84,891 Engineering and public works 346,274 143,814 48,887 94,927 Capital outlay - 32,057 32,006 51 Transfers out 3,826 6,357 6,357 - Total Charges to Appropriations 949,848 998,483 817,637 180,846 Budgetary Fund Balance, June 30 1,696,048$ 1,779,447$ 1,997,165$ 217,718$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:104 Menifee Mayor and City Council January 20,2021 Page 741 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT – HIDDEN HILLS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -79- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 385,770$ 385,770$ 385,770$ -$ Resources (Inflows): Charges for services 106,043 133,426 136,182 2,756 Use of money and property 2,500 2,500 5,719 3,219 Amounts Available for Appropriation 494,313 521,696 527,671 5,975 Charges for Appropriation (Outflows): General government 8,250 8,250 7,634 616 Parks and recreation 108,543 128,843 63,477 65,366 Capital outlay - - 4,651 (4,651) Total Charges to Appropriations 116,793 137,093 75,762 61,331 Budgetary Fund Balance, June 30 377,520$ 384,603$ 451,909$ 67,306$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:105 Menifee Mayor and City Council January 20,2021 Page 742 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE CFD 2014-1 Town Center FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -80- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 119,892$ 119,892$ 119,892$ -$ Resources (Inflows): Charges for services 14,520 14,620 17,183 2,563 Use of money and property 1,000 1,000 1,731 731 Amounts Available for Appropriation 135,412 135,512 138,806 3,294 Charges for Appropriation (Outflows): General government 1,510 1,510 1,302 208 Parks and recreation 11,510 11,510 2,591 8,919 Engineering and public works 2,500 2,843 328 2,515 Total Charges to Appropriations 15,520 15,863 4,221 11,642 Budgetary Fund Balance, June 30 119,892$ 119,649$ 134,585$ 14,936$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:106 Menifee Mayor and City Council January 20,2021 Page 743 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE TUMF FEES FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -81- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 3,072,115$ 3,072,115$ 3,072,115$ -$ Resources (Inflows): Intergovernmental 1,897,000 1,897,000 700,405 (1,196,595) Use of money and property 1,000 1,000 53,276 52,276 Amounts Available for Appropriation 4,970,115 4,970,115 3,825,796 (1,144,319) Charges for Appropriation (Outflows) Engineering and public works 2,922,000 2,922,000 773,069 2,148,931 Transfers out 2,984,597 2,984,597 2,984,597 - Total Charges to Appropriations 5,906,597 5,906,597 3,757,666 2,148,931 Budgetary Fund Balance, June 30 (936,482)$ (936,482)$ 68,130$ 1,004,612$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:107 Menifee Mayor and City Council January 20,2021 Page 744 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT – 2014-2 COMMERCE POINT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -82- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 46,187$ 46,187$ 46,187$ -$ Resources (Inflows): Charges for services 14,948 15,050 15,050 - Use of money and property 65 65 128 63 Amounts Available for Appropriation 61,200 61,302 61,365 63 Charges for Appropriation (Outflows): General government 2,210 2,210 2,024 186 Engineering and public works 12,803 12,803 8,969 3,834 Total Charges to Appropriations 15,013 15,013 10,993 4,020 Budgetary Fund Balance, June 30 46,187$ 46,289$ 50,372$ 4,083$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:108 Menifee Mayor and City Council January 20,2021 Page 745 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT – 2015-2 CITYWIDE FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -83- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 676,165$ 676,165$ 676,165$ -$ Resources (Inflows): Charges for services 747,656 869,213 750,925 (118,288) Use of money and property 2,800 2,800 79 (2,721) Transfers in 148,636 102,323 58,086 (44,237) Amounts Available for Appropriation 1,575,257 1,650,501 1,485,255 (165,246) Charges for Appropriation (Outflows): Parks and recreation 56,711 62,411 34,632 27,779 Engineering and public works 780,154 756,263 160,856 595,407 Capital outlay - 1,600 8,561 (6,961) Transfers out 118,454 105,240 58,384 46,856 Total Charges to Appropriations 955,319 925,514 262,433 663,081 Budgetary Fund Balance, June 30 619,938$ 724,987$ 1,222,822$ 497,835$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:109 Menifee Mayor and City Council January 20,2021 Page 746 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT – 2017-1 MAINTENANCE SERVICES FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -84- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 127,967$ 127,967$ 127,967$ -$ Resources (Inflows): Charges for services 171,154 171,154 170,792 (362) Use of money and property 50 50 - (50) Amounts Available for Appropriation 299,171 299,171 298,759 (412) Charges for Appropriation (Outflows): General government 6,545 6,545 6,384 161 Engineering and public works 163,693 163,693 65,451 98,242 Transfers out 966 1,605 1,605 - Total Charges to Appropriations 171,204 171,843 73,440 98,403 Budgetary Fund Balance, June 30 127,967$ 127,328$ 225,319$ 97,991$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:110 Menifee Mayor and City Council January 20,2021 Page 747 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE PUBLIC, EDUCATION AND GOVERNMENTAL ACCESS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -85- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 249,571$ 249,571$ 249,571$ -$ Resources (Inflows): Charges for services 150,000 150,000 180,975 30,975 Use of money and property 500 500 - (500) Amounts Available for Appropriation 400,071 400,071 430,546 30,475 Charges for Appropriation (Outflows): General government - 130,000 11,439 118,561 Total Charges to Appropriations - 130,000 11,439 118,561 Budgetary Fund Balance, June 30 400,071$ 270,071$ 419,107$ 149,036$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:111 Menifee Mayor and City Council January 20,2021 Page 748 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE COUNTY SERVICE AREAS (CSA) FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -86- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 728,762$ 728,762$ 728,762$ -$ Resources (Inflows): Taxes 771,800 769,800 881,117 111,317 Charges for services 1,856,806 1,836,617 1,876,082 39,465 Use of money and property 29,200 29,200 45,455 16,255 Amounts Available for Appropriation 3,386,568 3,364,379 3,531,416 167,037 Charges for Appropriation (Outflows): General government 32,055 33,555 30,365 3,190 Public safety 692,722 704,747 667,604 37,143 Parks and recreation 773,397 783,355 657,749 125,606 Engineering and public works 1,457,334 2,145,419 1,801,249 344,170 Capital outlay 69,057 1,000 1,000 - Transfers out 259,653 431,412 431,412 - Total Charges to Appropriations 3,284,218 4,099,488 3,589,379 510,109 Budgetary Fund Balance, June 30 102,350$ (735,109)$ (57,963)$ 677,146$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:112 Menifee Mayor and City Council January 20,2021 Page 749 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE DEBT SERVICE FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -87- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 7,884,527$ 7,884,527$ 7,884,527$ -$ Resources (Inflows): Use of money and property 24,000 24,000 26,328 2,328 Transfers in 1,585,985 1,772,460 1,772,461 1 Amounts Available for Appropriation 9,494,512 9,680,987 9,683,316 2,329 Charges for Appropriation (Outflows): General government 24,000 180,976 22,559 158,417 Debt service: Principal retirement 445,029 475,088 475,088 - Interest and fiscal charges 1,140,956 1,140,397 1,140,397 - Transfers out - - 6,473,000 (6,473,000) Total Charges to Appropriations 1,609,985 1,796,461 8,111,044 (6,314,583) Budgetary Fund Balance, June 30 7,884,527$ 7,884,526$ 1,572,272$ (6,312,254)$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:113 Menifee Mayor and City Council January 20,2021 Page 750 of 828 CITY OF MENIFEE BUDGETARY COMPARISON SCHEDULE MAJOR FUND – CAPITAL PROJECTS FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -88- Actual Variance with Original Final Amounts Final Budget Budgetary Fund Balance, July 1 5,554,885$ 5,554,885$ 5,554,885$ -$ Resources (Inflows): Intergovernmental - - 1,411,430 1,411,430 Use of money and property 40,000 40,000 102,178 62,178 Transfers in 3,034,597 3,034,597 9,507,597 6,473,000 Amounts Available for Appropriation 8,629,482 8,629,482 16,576,090 7,946,608 Charges for Appropriation (Outflows): Engineering and public works 2,112,198 3,845,861 2,975,015 870,846 Capital outlay 1,292,400 4,584,449 9,475,340 (4,890,891) Total Charges to Appropriations 3,404,598 8,430,310 12,450,355 (4,020,045) Budgetary Fund Balance, June 30 5,224,884$ 199,172$ 4,125,735$ 3,926,563$ Budgeted Amounts Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:114 Menifee Mayor and City Council January 20,2021 Page 751 of 828 CITY OF MENIFEE STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2020 -89- Balance Balance June 30, June 30, 2019 Additions Deletions 2020 Assets: Cash and investments 1,546,236$ 2,034,396$ (1,125,047)$ 2,455,585$ Receivables: Accrued interest 8,865 4,994 (8,865) 4,994 Total Assets 1,555,101$ 2,039,390$ (1,133,912)$ 2,460,579$ Liabilities: Accounts payable -$ 28,218$ (28,218)$ -$ Deposits payable 1,555,101 1,054,588 (149,110) 2,460,579 Total Liabilities 1,555,101$ 1,082,806$ (177,328)$ 2,460,579$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:115 Menifee Mayor and City Council January 20,2021 Page 752 of 828     THIS PAGE INTENTIONALLY LEFT BLANK Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:116 Menifee Mayor and City Council January 20,2021 Page 753 of 828 -90- STATISTICAL SECTION DESCRIPTIONS This section of the City of Menifee’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Financial Trends Schedules – These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. As a newly incorporated City, information relative to the exact City boundaries prior to incorporation is not readily available in most cases. Therefore, trend information will be developed over time and reported annually. Net Position Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Major Revenues by Source – Governmental Funds Revenue Capacity Schedules – These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property taxes. Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Property Tax Payers Property Tax Levies and Collections Debt Capacity Schedules – These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Ratio of Outstanding Debt by Type Ratio of General Bonded Debt Outstanding Direct and Overlapping Bonded Debt Legal Debt Margin Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments. Demographic and Economic Statistics Principal Employers Full-time and Part-time City Employees by Program Operating Information – These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information related to the services the City provides and the activities it performs. Capital Asset Statistics by Function/Program Operating Indicators by Function/Program Miscellaneous Statistics Taxable Sales by Category Top 25 Sales Tax Producers Measure DD 1% Sales Tax – Revenues and Expenditures History Sources: Unless otherwise noted, the information in these schedules is derived from various internal and other governmental and non-governmental sources where reliability of the data could be ascertained. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:117 Menifee Mayor and City Council January 20,2021 Page 754 of 828 CITY OF MENIFEE NET POSITION -91- As of June 30, 2011 2012 2013 2014 GOVERNMENTAL ACTIVITIES Net Investment in Capital Assets 20,412,080$ 20,562,822$ 18,660,912$ 16,372,388$ Restricted for: Community Development Projects 62,842 - 52,861 785,619 Public Safety - - 520,300 166,413 Public Works 12,906,508 15,166,078 16,712,925 18,577,377 Capital Pprojects - - 1,305,962 23,541,211 Debt service 20,536 20,312,675 6,513,444 1,338,301 Unrestricted 9,644,685 (11,559,198) 6,523,468 8,301,753 Total Governmental Activities Net Position 43,046,651$ 44,482,377$ 50,289,872$ 69,083,062$ PRIMARY GOVERNMENT Net Investment in Capital Assets 20,412,080$ 20,562,822$ 18,660,912$ 16,372,388$ Restricted for: Community Development Projects 62,842 - 52,861 785,619 Public Safety - - 520,300 166,413 Public Works 12,906,508 15,166,078 16,712,925 18,577,377 Capital Pprojects - - 1,305,962 23,541,211 Debt service 20,536 20,312,675 6,513,444 1,338,301 Unrestricted 9,644,685 (11,559,198) 6,523,468 8,301,753 Total Primary Government Net Position 43,046,651$ 44,482,377$ 50,289,872$ 69,083,062$ Source: City Finance Department Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:118 Menifee Mayor and City Council January 20,2021 Page 755 of 828 (continued) -92- 2015 2016 2017 2018 2019 2020 25,425,778$ 51,416,214$ 69,469,330$ 110,924,809$ 156,771,192$ 215,774,004$ 1,182,477 4,448,198 4,660,916 5,363,977 6,373,715 4,569,409 (360,254) - - 12,472 191,737 - 23,094,019 23,908,504 20,471,018 32,360,079 44,929,363 40,108,013 20,022,031 9,619,732 4,772,166 - - - 1,354,467 1,359,694 1,358,034 1,371,931 7,884,527 1,572,272 12,103,855 10,903,072 14,504,934 26,052,076 30,064,613 36,384,684 82,822,373$ 101,655,414$ 115,236,398$ 176,085,344$ 246,215,147$ 298,408,382$ 25,425,778$ 51,416,214$ 69,469,330$ 110,924,809$ 156,771,192$ 215,774,004$ 1,182,477 4,448,198 4,660,916 5,363,977 6,373,715 4,569,409 (360,254) - - 12,472 191,737 - 23,094,019 23,908,504 20,471,018 32,360,079 44,929,363 40,108,013 20,022,031 9,619,732 4,772,166 - - - 1,354,467 1,359,694 1,358,034 1,371,931 7,884,527 1,572,272 12,103,855 10,903,072 14,504,934 26,052,076 30,064,613 36,384,684 82,822,373$ 101,655,414$ 115,236,398$ 176,085,344$ 246,215,147$ 298,408,382$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:119 Menifee Mayor and City Council January 20,2021 Page 756 of 828 CITY OF MENIFEE CHANGES IN NET POSITION -93- For the Year Ended June 30, 2011 2012 2013 2014 EXPENSES Governmental Activities: General Government 2,775,494$ 2,955,539$ 2,966,563$ 3,731,602$ Public Safety 15,826,194 16,057,258 16,265,992 17,371,349 Community Development 1,943,932 1,859,077 2,514,802 3,161,672 Recreation Services - - 736,915 555,384 Engineering and Public Works 6,637,586 7,034,847 7,785,539 8,198,856 Interest on Long-term Debt 14,140 78,433 942,270 885,488 Total Governmental Activities Expenses 27,197,346 27,985,154 31,212,081 33,904,351 PROGRAM REVENUES Governmental Activities: Charges for Services 5,634,246 4,094,392 6,788,528 11,776,032 Operating Contributions and Grants 5,747,180 6,299,558 5,044,016 5,536,969 Capital Contributions and Grants 10,486,447 1,143,672 8,235,741 14,267,238 Total Governmental Activities Program Revenues 21,867,873 11,537,622 20,068,285 31,580,239 Total Net Revenues (Expenses) (5,329,473)$ (16,447,532)$ (11,143,796)$ (2,324,112)$ GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities: Taxes: Property Tax 8,080,376$ 8,728,216$ 8,783,126$ 11,945,065$ Transient Occupancy Tax 121,437 137,116 151,151 166,958 Sales Taxes 4,464,595 4,802,963 4,892,206 5,386,619 Franchise Tax 2,764,292 2,916,302 2,921,048 2,967,476 Other Taxes 306,102 233,947 346,972 387,364 Motor Vehicle in-lieu tax, unrestricted 4,234,309 47,163 45,443 34,912 Use of Money and Property 163,678 113,444 127,399 154,230 Other 118,779 27,233 64,956 (36,693) Total Governmental Activities 20,253,568 17,006,384 17,332,301 21,005,931 Special item - - - - Restatement (7,466) 876,874 (381,010) 111,371 Change in Net Position 14,924,095$ 558,852$ 6,188,505$ 18,681,819$ Source: City Finance Department Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:120 Menifee Mayor and City Council January 20,2021 Page 757 of 828 (continued) -94- 2015 2016 2017 2018 2019 2020 4,160,012$ 4,236,457$ 5,158,876$ 6,265,963$ 8,177,727$ 9,907,689$ 19,413,871 20,927,524 18,129,742 25,497,233 27,595,237 29,559,843 3,091,768 3,255,560 3,403,182 4,925,868 5,347,196 5,253,832 1,903,871 1,145,208 1,664,348 3,034,270 4,082,858 5,432,196 7,292,714 10,361,131 8,281,676 6,082,233 16,979,928 18,331,483 918,204 902,716 891,605 917,342 863,713 1,108,218 36,780,440 40,828,596 37,529,429 46,722,909 63,046,659 69,593,261 12,407,481 12,764,259 19,257,460 27,218,239 33,823,689 24,835,036 3,777,617 3,041,014 3,578,315 4,722,133 5,141,336 5,530,426 9,151,362 16,930,639 3,107,374 33,885,278 46,785,288 38,642,004 25,336,460 32,735,912 25,943,149 65,825,650 85,750,313 69,007,466 (11,443,980)$ (8,092,684)$ (11,586,280)$ 19,102,741$ 22,703,654$ (585,795)$ 14,634,225$ 14,577,983$ 12,369,587$ 18,876,904$ 20,771,353$ 22,361,021$ 190,972 217,122 225,956 232,117 238,464 189,032 5,924,347 7,137,168 8,661,218 18,005,117 20,384,878 21,102,457 3,586,271 3,084,175 2,973,633 3,076,719 3,141,174 6,289,806 409,003 460,751 582,937 615,333 623,801 801,896 34,308 34,451 39,873 47,721 44,113 73,963 151,450 253,336 221,371 613,165 2,011,031 1,805,179 84,370 94,005 92,689 166,682 211,335 155,676 25,014,946 25,858,991 25,167,264 41,633,758 47,426,149 52,779,030 - 1,066,734 - - - - 168,345 - - - - - 13,570,966$ 17,766,307$ 13,580,984$ 60,736,499$ 70,129,803$ 52,193,235$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:121 Menifee Mayor and City Council January 20,2021 Page 758 of 828 CITY OF MENIFEE FUND BALANCES OF GOVERNMENTAL FUNDS -95- As of June 30, 2011 2012 2013 2014 GENERAL FUND: Reserved -$ -$ -$ -$ Restricted - - - - Nonspendable - - - - Committed 6,067,533 ₁ 6,067,533 6,546,700 ₄6,546,700 Assigned 8,744 ₁ 36,532 ₂58,429 40,836 Unassigned 4,024,996 ₁ 3,203,538 951,533 2,002,972 Total General Fund 10,101,273 9,307,603 7,556,662 8,590,508 ALL OTHER GOVERNEMENTAL FUNDS Restricted for Community Development Projects - - 520,300 785,619 Restricted for Public Safety 62,842 ₁ - 52,861 166,413 Restricted for Engineering/Public Works 12,906,508 ₁ 15,166,078 16,712,925 18,577,229 Restricted for Capital Projects 20,536 ₁ 20,312,675 ₃6,513,444 23,541,211 Restricted for Debt Service - ₁ - 20,620,358 ₅1,338,301 Unassigned (7,925) ₁ (214,931) (16,810) (1,655,616) Total All Other Governmental Funds 12,981,961 35,263,822 44,403,078 42,753,157 TOTAL GOVERNMENTAL FUNDS 23,083,234$ 44,571,425$ 51,959,740$ 51,343,665$ The City of Menifee was incorporated during fiscal year 2008-2009. No information prior to that date is available. 1 Fund balance classification reflects GASB 54 implementation beginning Fiscal Year 2011. 2 Establish $15,000 self-insurance, retention reserve. 3 Certificates of Participations issued for capital construction. 4 Establish emergency reserve of 20% of General Fund expenditures and $250,000 towards construction of new City Hall. 5 Transferred proceeds from Certificates of Participation to debt service fund. 6 Transferred proceeds from Certificates of Participation to capital project fund. Source: City Finance Department Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:122 Menifee Mayor and City Council January 20,2021 Page 759 of 828 (continued) -96- 2015 2016 2017 2018 2019 2020 -$ -$ -$ -$ -$ -$ - - - - - - 2,173,477 1,880,909 64,540 28,073 65,751 13,473 6,546,700 6,546,700 3,543,729 3,543,729 3,543,729 5,688,958 40,836 226,500 461,890 4,396,969 13,437,218 8,701,430 (486,600) 1,268,621 8,547,350 16,886,664 18,089,574 27,202,215 8,274,413 9,922,730 12,617,509 24,855,435 35,136,272 41,606,076 1,184,687 4,180,264 4,660,916 5,363,977 6,373,715 4,569,409 194,826 267,934 234,782 12,472 191,737 - 25,022,383 23,908,504 19,781,187 32,360,079 44,929,363 40,165,976 20,022,031 9,619,732 5,461,997 - - - 1,354,467 1,359,694 1,358,034 1,371,931 7,884,527 1,572,272 - - - (154) - (57,963) 47,778,394 39,336,128 31,496,916 39,108,305 59,379,342 46,249,694 56,052,807$ 49,258,858$ 44,114,425$ 63,963,740$ 94,515,614$ 87,855,770$ Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:123 Menifee Mayor and City Council January 20,2021 Page 760 of 828 CITY OF MENIFEE CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS -97- For the Year Ended June 30, 2011 2012 2013 2014 REVENUES Taxes 15,844,815$ 16,774,978$ 17,180,634$ 20,853,483$ Licenses and permits 2,186,585 1,811,432 2,627,988 6,330,389 Intergovernmental 11,163,699 7,378,063 8,355,898 5,527,820 Charges for services 30,959 73,892 98,707 167,830 Use of money and property 163,678 113,444 127,399 154,230 Fines and forfeitures 395,644 387,659 407,637 447,996 Developer participation 2,977,863 1,419,541 9,521,754 4,878,374 Miscellaneous 118,779 27,233 23,185 53,677 Total Revenues 32,882,022 27,986,242 38,343,202 38,413,799 EXPENDITURES Current: General government 2,690,247 2,847,574 2,818,701 3,296,176 Public safety 15,819,806 16,050,217 16,255,888 17,363,329 Community development 1,925,777 1,840,980 2,500,826 3,126,267 Parks and recreation - - 736,915 555,384 Engineering and public works 4,980,677 5,392,072 6,174,881 6,583,127 Capital outlay 183,652 950,814 1,164,653 6,804,204 Debt service: Principal retirement - - 290,000 350,000 Interest and fiscal charges - - 1,013,023 951,387 Total Expenditures 25,600,159 27,081,657 30,954,887 39,029,874 Excess (Deficiency) of Revenues Over (Under) Expenditures 7,281,863 904,585 7,388,315 (616,075) OTHER FINANCING SOURCES (USES) Transfers in - 71,360 22,485,729 20,916,110 Transfers out - (71,360) (22,485,729) (20,916,110) Other debts issued - 20,000,000 - - Bond premium - 979,921 - - Cost of issuance - (396,315) - - Total Financing Sources (Uses) - 20,583,606 - - Net Change in Fund Balances 7,281,863 21,488,191 7,388,315 (616,075) Fund Balances, beginning of year 15,808,837 23,083,234 44,571,425 51,959,740 Restatements (7,466) - - - Fund Balances, end of year $ 23,083,234 $ 44,571,425 $ 51,959,740 $ 51,343,665 DEBT SERVICE AS A PERCENTAGE OF NON CAPITAL EXPENDITURES 0.00% 0.00% 4.37% 4.04% Source: City Finance Department Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:124 Menifee Mayor and City Council January 20,2021 Page 761 of 828 (continued) -98- 2015 2016 2017 2018 2019 2020 24,744,819$ 25,477,199$ 24,813,331$ 34,743,397$ 38,523,243$ 44,111,372$ 5,463,643 6,832,170 8,061,714 10,867,727 10,765,702 10,011,450 9,151,033 6,369,501 5,748,048 12,580,822 13,820,929 16,762,108 658,972 1,630,272 6,219,925 6,677,180 8,428,907 8,177,911 151,449 254,526 221,382 613,165 2,011,031 1,805,179 502,613 553,986 655,544 718,890 942,403 598,244 6,079,281 4,518,711 5,295,110 9,078,142 14,077,226 5,559,177 54,509 77,778 95,359 128,323 162,935 117,986 46,806,319 45,714,143 51,110,413 75,407,646 88,732,376 87,143,427 4,087,029 4,253,708 5,391,081 6,151,518 8,169,511 9,981,475 19,336,968 20,836,489 21,350,629 25,062,622 27,389,574 33,869,480 2,838,474 3,154,443 3,643,590 4,872,304 5,693,505 5,196,946 2,075,562 1,182,854 2,461,119 2,833,753 3,592,890 3,977,479 11,457,614 20,576,193 5,947,990 9,438,808 13,436,193 20,997,861 997,142 1,200,818 16,157,949 5,898,238 5,143,341 18,164,545 360,000 370,000 380,000 390,000 410,000 475,088 944,388 933,587 922,488 911,088 895,488 1,140,397 42,097,177 52,508,092 56,254,846 55,558,331 64,730,502 93,803,271 4,709,142 (6,793,949) (5,144,433) 19,849,315 24,001,874 (6,659,844) 1,566,639 1,645,900 1,442,815 1,475,606 2,444,198 11,477,822 (1,566,639) (1,645,900) (1,442,815) (1,475,606) (2,444,198) (11,477,822) - - - - 6,550,000 - - - - - - - - - - - - - - - - - 6,550,000 - 4,709,142 (6,793,949) (5,144,433) 19,849,315 30,551,874 (6,659,844) 51,343,665 56,052,807 49,258,858 44,114,425 63,963,740 94,515,614 - - - - - - $ 56,052,807 $ 49,258,858 $ 44,114,425 $ 63,963,740 $ 94,515,614 $ 87,855,770 3.17% 2.54% 3.25% 2.62% 2.19% 2.14% Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:125 Menifee Mayor and City Council January 20,2021 Page 762 of 828 CITY OF MENIFEE MAJOR REVENUES BY SOURCE – GOVERNMENTAL FUNDS -99- Fiscal Property Sales Motor Vehicle Franchise Year Tax Tax In Lieu Tax Tax Total 2011 8,080,376$ 4,464,595$ 4,234,309$ 2,764,292$ 19,543,572$ 2012 8,728,216 4,759,397 47,163 2,916,302 16,451,078 2013 8,783,126 4,978,337 45,443 2,921,048 16,727,954 2014 11,945,065 5,386,619 34,912 2,967,476 20,334,072 2015 14,634,225 5,924,347 34,308 3,586,271 24,179,151 2016 14,577,983 7,137,168 34,451 3,084,175 24,833,777 2017 12,369,587 8,661,218 39,873 2,973,633 24,044,311 2018 18,876,904 18,005,117 47,721 3,076,719 40,006,461 2019 20,771,353 20,384,878 44,113 3,141,174 44,341,518 2020 22,361,021 21,102,457 73,963 6,289,806 49,827,247 Source: City Finance Department Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:126 Menifee Mayor and City Council January 20,2021 Page 763 of 828 CITY OF MENIFEE ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY -100- Total Taxable Fiscal Assessed Percent Year Secured Unsecured SBE Nonunitary Exemptions Value Change 2011 5,781,354,495$ 98,872,824$ 709,497,631$ (18,241,235)$ 6,571,483,715$ -4.05% 2012 5,853,629,690 93,528,317 811,497,631 (18,343,316) 6,740,312,322 2.57% 2013 5,802,742,402 101,020,305 577,528,271 (19,336,905) 6,461,954,073 -4.13% 2014 6,179,136,921 94,335,266 440,228,271 (19,630,098) 6,694,070,360 3.59% 2015 6,987,584,499 92,460,808 346,628,271 (19,962,118) 7,406,711,460 10.65% 2016 7,686,424,297 95,234,280 295,028,271 (131,240,361) 7,945,446,487 7.27% 2017 8,204,501,816 94,227,737 253,828,271 (144,682,408) 8,407,875,416 5.82% 2018 8,712,740,063 99,807,071 105,828,271 (21,427,691) 8,896,947,714 5.82% 2019 9,492,168,800 113,916,759 118,100,000 (21,889,314) 9,702,296,245 9.05% 2020 10,257,311,309 119,918,747 13,800,000 (1,199,425) 10,389,830,631 7.09% Source: HdL Companies, Riverside County Assessor In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:127 Menifee Mayor and City Council January 20,2021 Page 764 of 828 CITY OF MENIFEE ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY BY USE CATEGORY -101- Total Taxable Total Fiscal Residential Commercial Industrial Assessed Percent Direct Year Property Property Property Dry Farm Other Exemptions Value Change Rate 2011 4,581,885,190$ 357,862,454$ 67,473,198$ 24,004,780$ 1,558,499,328$ (18,241,235)$ 6,571,483,715$ -4.05% 0.06454 2012 4,665,861,538 387,329,110 66,412,859 22,788,145 1,616,263,986 (18,343,316) 6,740,312,322 2.57% 0.06373 2013 4,653,661,495 400,175,540 71,956,220 21,439,147 1,334,058,576 (19,336,905) 6,461,954,073 -4.13% 0.06617 2014 5,025,043,795 419,255,659 74,872,731 22,134,820 1,172,393,453 (19,630,098) 6,694,070,360 3.59% 0.14552 2015 5,837,398,400 419,946,710 78,550,017 20,875,554 1,069,902,897 (19,962,118) 7,406,711,460 10.65% 0.14230 2016 6,349,493,758 444,912,094 79,232,788 21,615,968 1,070,534,347 (20,342,468) 7,945,446,487 7.27% 0.14069 2017 6,823,268,713 465,564,229 80,678,726 21,511,185 1,038,617,091 (21,764,528) 8,407,875,416 5.82% 0.13943 2018 7,368,551,565 522,390,630 86,731,580 20,505,027 920,196,603 (21,427,691) 8,896,947,714 5.82% 0.13809 2019 8,050,646,652 592,624,119 97,305,521 20,895,440 962,713,827 (21,889,314) 9,702,296,245 9.05% 0.13739 2020 8,789,370,483 634,623,902 96,855,473 84,679,342 785,500,856 (1,199,425) 10,389,830,631 7.09% 0.13697 Source: HdL Companies, Riverside County Assessor In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% based upon the assessed value of the property being taxed. Each year, the assessed value of property may beincreased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time it is sold to new owner. At that point, the new assessed value is reassessed at the purchase price sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:128 Menifee Mayor and City Council January 20,2021 Page 765 of 828 CITY OF MENIFEE DIRECT AND OVERLAPPING PROPERTY TAX RATES -102- Agency 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Basic Levy* 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Eastern Municipal Water Imp District 0.22100 0.21100 0.21100 0.21100 0.15800 0.05000 0.05000 0.05000 0.05000 0.05000 Menifee School Debt Service 0.03436 0.03486 0.03486 0.03421 0.03275 0.03010 0.03269 0.06080 0.06303 0.06277 Metropolitan Water District Original Area 0.00370 0.00370 0.00370 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Perris Union High School Debt Service 0.03126 0.03429 0.03429 0.06970 0.06303 0.06236 0.06092 0.01320 0.01320 0.08244 Mt. San Jacinto Jr. College - - - - - 0.01394 0.01320 0.05675 0.05243 0.01320 Total Direct & Overlapping Tax Rates 1.29032 1.28385 1.28385 1.31841 1.25728 1.15990 1.16031 1.18425 1.18216 1.21191 City of Menifee Share of 1% per Prop 13 0.06459 0.12740 0.12740 0.12740 0.12740 0.12904 0.12903 0.12903 0.12903 0.12903 Total Direct Rate**0.06454 0.06373 0.06617 0.14552 0.14227 0.14069 0.13943 0.13809 0.13739 0.13697 This schedule shows information for all city tax rate areas. **Total Direct Rate is the weighted average of all individual direct rates applied by the government entity. Source:HdL Companies *In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% fixed amount. This 1.00% is shared by all taxing agencies in which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds or assessments. Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:129 Menifee Mayor and City Council January 20,2021 Page 766 of 828 CITY OF MENIFEE PRINCIPAL PROPERTY TAX PAYERS -103- Percent Percent of Total City of Total City Total Taxable Total Taxable Assessed Assessed Assessed Assessed Taxpayer Value Value Rank Value Value Rank Inland Empire Energy Center, LLC 709,400,000$ 10.80% 1 459,300,000$ 5.73% 1 Donahue Schriber Realty Group 49,638,600 0.76% 2 StarkMenifee Land 48,658,369 0.74% 3 Fairfield Holland Road 35,348,112 0.54% 4 Carrington Place Limited 35,280,000 0.54% 5 Centex Homes 30,806,954 0.47% 6 61,677,032 0.77% 3 Minor Ranch 25,224,851 0.38% 7 59,343,247 0.74% 4 Fleming Family LP 24,048,047 0.37% 8 25,027,000 0.31% 10 Menifee Development 23,860,837 0.36% 9 37,057,805 0.46% 6 HCP HB2 Carrington Cherry Hills 20,097,946 0.31% 10 A Murphy Ranch 69,009,500 0.86% 2 SR Structured Lot Options 40,800,448 0.51% 5 Carrington Place Limited 35,280,000 0.44% 7 Pacten Scott Road Associates 27,889,860 0.35% 8 Capital Pacific Holdings 26,968,185 0.34% 9 Totals 1,002,363,716 15.25% 842,353,077 10.51% All Other 5,569,119,999 84.75% 7,171,117,017 89.49% City Total 6,571,483,715$ 100.00% 8,013,470,094$ 100.00% Source: The HdL Companies 2020 2010 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:130 Menifee Mayor and City Council January 20,2021 Page 767 of 828 CITY OF MENIFEE PROPERTY TAX LEVIES AND COLLECTIONS -104- Total Tax Fiscal Levy for Percentage of Amount Collected in Total Tax Percentage Year Fiscal Year Amount Levy Subsequent Year Collections of Levy 2011 8,339,538$ 10,361,702$ 124.25% 41,527$ 8,633,355$ 104% 2012 8,178,208 7,885,949 96.43% 293,816 8,286,189 101% 2013 8,354,848 8,321,443 99.60% 144,969 8,354,848 100% 2014 9,319,167 9,159,856 98.29% 159,311 9,319,167 100% 2015 10,165,063 10,091,501 99.28% 73,562 10,165,063 100% 2016 10,903,160 10,707,116 98.20% 196,044 10,903,160 100% 2017 11,592,282 11,391,985 98.27% 200,297 11,592,282 100% 2018 12,027,685 11,935,913 99.24% 91,772 12,027,685 100% 2019 13,268,770 13,077,732 98.56% 191,038 13,268,770 100% 2020 14,397,065 14,170,014 98.42% 227,051 14,397,065 100% Fiscal Year of Levy Collected within the With the passage of Resolution 10-138 in June 2010, the City of Menifee agreed to participate in the Riverside County Teeter Program. Under the Teeter Plan, the City is paid in full each year for the actual amount of property taxes levied, regardless of the amount of delinquencies. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:131 Menifee Mayor and City Council January 20,2021 Page 768 of 828 CITY OF MENIFEE RATIO OF OUTSTANDING DEBT BY TYPE -105- General Lease Certificates Distribution Total Percentage of Fiscal Obligation Revenue of Facilities County Governmental Personal Year Bonds Bonds Participation Financing 2019 Repayment (1)Activities Income 2011 -$ -$ -$ -$ 1,083,128$ 1,083,128$ 0.06% 2012 - - 20,942,080 - 1,099,390 22,041,470 1.27% 2013 - - 20,586,752 - 1,057,619 21,644,371 1.19% 2014 - - 20,206,344 - 1,057,619 21,263,963 1.18% 2015 - - 19,815,936 - 1,057,619 20,873,555 1.12% 2016 - - 19,415,528 - - 19,415,528 1.03% 2017 - - 19,005,120 - - 19,005,120 0.98% 2018 - - 18,584,712 - - 18,584,712 0.90% 2019 - - 18,144,304 6,550,000 - 24,694,304 1.09% 2020 - - 17,025,000 6,499,912 - 23,524,912 0.96% (1) County Repayment is not bonded debt (2) See the schedule of demographic and economic statistics for population data. Source: City Finance Division Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:132 Menifee Mayor and City Council January 20,2021 Page 769 of 828 CITY OF MENIFEE RATIO OF GENERAL BONDED DEBT OUTSTANDING -106- Total Less Percent General Debt Net of Debt to Debt Fiscal Assessed Obligation Service Bonded Assessed per Year Population Value Bonds Fund (1) Debt Value (2) Capita 2011 79,444 6,571,483,715$ -$ -$ -$ 0.00% - 2012 80,589 6,740,307,322 - - - 0.00% - 2013 82,292 6,461,954,073 - - - 0.00% - 2014 83,716 6,694,070,360 - - - 0.00% - 2015 85,385 7,406,711,460 - - - 0.00% - 2016 88,524 7,945,446,487 - - - 0.00% - 2017 90,660 8,407,875,416 - - - 0.00% - 2018 91,902 8,896,947,714 - - - 0.00% - 2019 93,452 9,702,296,245 - - - 0.00% - 2020 97,093 10,389,830,631 - - - 0.00% - (1) Amounts available for repayment of general obligation bonds. Source: City Finance Division (2) Assessed value has been used because the actual value of taxable property is not readily available in the State of California. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:133 Menifee Mayor and City Council January 20,2021 Page 770 of 828 CITY OF MENIFEE DIRECT AND OVERLAPPING BONDED DEBT JUNE 30, 2020 -107- Percent City's Total Applicable Share of Debt to City Debt Direct Debt City of Menifee-County Loan Repayment -$ 0.0% -$ City of Menifee-Certificates of Participation 17,025,000 100.0% 17,025,000 City of Menifee-Distribution Facilities Financing Agreement 6,499,912 100.0% 6,499,912 Total Direct Debt 23,524,912$ 100.0%23,524,912$ Direct and Overlapping Tax and Assessment Debt Metropolitan Water District 37,300,000$ 0.331% 123,463$ Riverside County Flood Control & Water Reclamation District 12,530,000 18.827% 2,359,023 Eastern Municipal Water District Improvement Districts 18,479,000 20.642-100% 15,656,216 Mount San Jacinto Community College District 164,385,000 10.79300% 17,742,073 Perris Union High School District 246,840,871 57.517% 141,975,464 Menifee Union School District 93,889,720 75.293% 70,692,387 Perris Union High School District CFD 92-1 33,400,000 62.218% 20,780,812 Menifee School District Community Facilities Districts 139,300,000 57.42-100% 136,930,423 Romoland School District Communit Facilities Districts 121,770,000 100% 121,770,000 Eastern Municipal Water District Community Facilities Districts 57,167,000 100% 57,167,000 Riverside County Community Facilities District No. 03-1 31,900,000 27.035-93.749% 22,946,587 Eastern Municipal Water District 1915 Act Bonds 3,420,000 62.430% 2,135,106 Total Direct and Overalapping Tax and Assessment Debt 610,278,554$ Overlapping General Fund Debt: Riverside County General Fund Obligations 759,807,924$ 3.511% 26,676,856$ Riverside County Pension Obligations 938,825,000 3.511% 32,962,146 Riverside County Board of Education Cert. of Partic. - 0.000% - Perris Union High School District Cert of Partic. 41,287,307 57.517% 23,747,220 Menifee Union School District Cert. of Partic. 46,925,612 75.293% 35,331,701 Total Gross Overlapping General Fund Debt 118,717,923$ Less: Riverside County Supported Obligations - Total Net Overlapping General Fund Debt 118,717,923$ Overlapping Tax Increment Debt 248,757,748$ 2.051-13.177%16,933,935$ (Riverside County Successor Agency) Total Direct Debt 23,524,912$ Total Gross Overlapping Debt 745,930,412$ Total Net Overlapping Debt 745,930,412$ Total Direct and Overlapping Debt 745,930,412$ Gross Combined Total Debt 1 769,455,324$ Net Combined Total Debt 769,455,324$ Ratios to 2019-20 Assessed Valuation: Total Direct Debt 0.24% Total Direct and Overlapping Tax and Asssessment Debt 6.29% Gross Combined Total Debt 7.93% Net Combined Total Debt 7.93% The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total assessed value. (1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Source: California Municipal Statisitics Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:134 Menifee Mayor and City Council January 20,2021 Page 771 of 828 CITY OF MENIFEE LEGAL DEBT MARGIN INFORMATION -108- 2018 2019 2020 Assessed valuation 8,896,947,714$ 9,702,296,245$ 10,389,830,631$ Debit Limit Percentage 15% 15% 15% Debt limit 1,334,542,157 1,455,344,437 1,558,474,595 Total Net Debt Applicable to the Limit General Obligation Bonds: - - - Legal debt margin 1,334,542,157$ 1,455,344,437$ 1,558,474,595$ Total Debt Applicable to the Limit as a Percentage of Debt Limit 0.00% 0.00% 0.00% Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. The City of Menifee has no general obligation indebtedness. Only last three years shown. Source: City Finance Department, HdL Companies Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:135 Menifee Mayor and City Council January 20,2021 Page 772 of 828 CITY OF MENIFEE DEMOGRAPHIC AND ECONOMIC STATISTICS -109- Personal Per Capita Median Occupied Persons Fiscal Income Personal Home Housing per Median Unemployment Year Population (In 1000) Income Price Units Household Age Rate 2011 79,444 1,688,724$ 24,508$ 173,250$ 30,787 2.58 36.9 15.70% 2012 80,589 1,738,627 21,574 175,000 31,585 2.55 38.3 12.90% 2013 82,292 1,812,481 22,025 198,750 31,975 2.57 38.2 10.20% 2014 83,716 1,808,600 21,604 250,000 28,933 2.89 38.0 8.90% 2015 85,385 1,868,959 22,333 280,000 29,383 2.91 37.9 9.60% 2016 88,524 1,891,622 21,253 300,000 30,226 2.93 38.7 7.90% 2017 90,660 1,936,648 21,253 325,000 31,253 3.94 37.4 7.10% 2018 91,902 2,055,023 22,667 340,000 31,253 2.94 37.4 4.70% 2019 93,452 2,264,845 24,235 350,000 31,222 2.99 37.9 4.50% 2020 97,093 2,450,076 25,234 374,000 27,461 3.54 37.9 4.00% Source: Riverside County Center for Demographic Research, California Department of Finance E-5 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:136 Menifee Mayor and City Council January 20,2021 Page 773 of 828 CITY OF MENIFEE PRINCIPAL EMPLOYERS -110- Number of Percentage of Employer Employees Employment Rank Mt San Jacinto College District 1,068 24.39% 1 Menifee Union School District 1,040 23.75% 2 Romoland Elementary School District 597 13.63% 3 Target Corporation 364 8.31% 4 Menifee Valley Medical Center 356 8.13% 5 Stater Brothers 270 6.17% 6 Southern California Edison 202 4.61% 7 Texas Roadhouse 167 3.81% 8 Life Care Center of Menifee 161 3.68% 9 Lowe's 154 3.52% 10 Total Employment Listed 4,379 100.00% Source: Menifee Valley Chamber of Commerce, City of Menifee Business License Division 2020 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:137 Menifee Mayor and City Council January 20,2021 Page 774 of 828 CITY OF MENIFEE FULL AND PART-TIME CITY EMPLOYEES BY PROGRAM -111- 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Full Time Equivalent Full Time Equivalent Full Time Equivalent Full Time Equivalent Full Time Equivalent Full Time Equivalent Full Time Equivalent Full Time Equivalent Full Time Equivalent Full Time Equivalent FUNCTION City Manager 4.00 6.00 1.50 1.25 2.00 2.00 1.00 4.00 4.00 5.00 Administrative Services - - 4.50 2.75 4.50 5.00 6.00 - - - City Clerk 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 5.00 Emergency Services 1.00 1.00 - 0.75 - - - - Finance 3.00 4.00 6.00 6.00 6.00 6.00 7.00 10.00 12.50 13.50 Human Resources 1.00 1.00 1.00 1.00 1.00 1.00 - 4.00 8.50 6.50 Information Technology - - - - - - - 2.00 5.00 8.00 Economic Development - 1.00 2.25 2.00 2.00 2.00 3.00 3.00 5.00 3.50 Community Development 3.00 3.00 3.00 3.00 4.00 4.00 5.00 11.00 13.50 13.00 Code Enforcement 2.00 4.00 4.00 4.00 5.00 4.00 4.00 7.00 7.00 5.00 Fire - - - - - - - 1.00 2.00 2.00 Engineering/ Pub Works 2.00 4.00 5.00 6.00 10.00 12.00 16.00 24.00 32.00 33.00 Building/Safety 2.50 3.00 4.00 4.00 7.00 8.00 9.00 12.00 14.00 12.00 Community Services 1.00 3.00 2.25 3.00 13.00 18.58 21.55 31.68 23.39 Police - - - - - - - - 76.00 77.00 Total 20.50 30.00 36.25 35.00 46.50 59.00 71.58 102.55 214.18 206.89 Part-Time Employees are expressed as Full-Time Equivalents. Source: City Finance Department Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:138 Menifee Mayor and City Council January 20,2021 Page 775 of 828 CITY OF MENIFEE CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM -112- As of June 30, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FUNCTION Public Works Streets (Miles) 238 238 240 244 265 318 318 318 318 327 Traffic Signals 64 64 63 67 67 73 68 71 72 75 Community Services Parks 5 5 5 7 7 7 8 11 12 14 Park Acreage 31 31 31 39 39 39 45 54 59 79 Source: City Public Works Department, Community Services Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:139 Menifee Mayor and City Council January 20,2021 Page 776 of 828 CITY OF MENIFEE OPERATING INDICATORS BY FUNCTION/PROGRAM -113- As of June 30, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FUNCTION Police Services Physical Arrests 797 816 824 1,107 1,061 1,295 1,412 1,385 1,500 1,582 Parking Citations 1,064 1,893 1,377 1,208 1,763 330 230 569 435 241 Traffic Citations 1,389 1,731 1,618 1,199 3,438 3,720 1,733 4,422 5,927 2,492 Calls for Service 35,064 35,938 37,485 41,052 44,395 47,728 47,926 47,961 49,291 48,615 Fire Services Medical/Public service Calls 6,261 6,858 6,964 7,301 7,220 9,741 10,081 9,342 10,071 9,172 Fire calls 109 160 119 122 130 144 184 182 167 193 All other calls 511 886 939 960 1,810 1,310 1,499 2,158 1,552 2,315 Total 6,881 7,904 8,022 8,443 9,160 11,195 11,764 11,682 11,790 11,680 Public Works Potholes/Skinpatch (square feet) 27,746 40,149 10,567 15,067 16,121 12,335 18,215 31,458 135,277 63,348 Curb Refurbishment/Painting (linear feet) 6,712 10,590 12,505 10,414 12,877 285 3,254 983 722 3,540 Right of Way Clearing (linear feet) 80,780 71,945 72,357 119,137 116,237 14,020,200 13,853,520 4,475,936 886,818 20,006 Traffic Signs repaired/replaced 697 1,184 642 911 729 213 275 821 418 461 Building & Safety Building Permits Issued 1,696 1,791 2,811 3,180 2,969 4,031 4,365 5,179 6,232 6,147 Building Inspections Completed 5,667 6,138 8,075 13,119 10,655 13,410 15,417 21,522 23,540 25,480 Community Development Planning Applications Completed 177 138 199 216 189 275 327 259 208 348 Source: City Finance Division, City Community Development Department, City Building Department, City Police Services Department, City Public Works Department Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:140 Menifee Mayor and City Council January 20,2021 Page 777 of 828 CITY OF MENIFEE MISCELLANEOUS STATISTICS JUNE 30, 2020 -114- Geographic Location:The City of Menifee is located approximately 80 miles south east of Los Angeles in the southwestern portion of Riverside County Population:97,093 Area in square miles:46 Form of Government:Council-Manager Date of Incorporation:October 1, 2008 Number of Full Time Employees:206.89 Public Safety: Police Department Riverside County Sheriff's Department contract, 51.16 FTE Fire Department Riverside County/Cal Fire Department contract, 52 FTE, 4 Fire Stations Library:3 branches, Riverside County Library System Recreation: 24 Parks owned by Valley Wide Recreation and Park District 14 Parks owned by the City Schools: Elementary 15 Middle Schools 5 High Schools 2 Community Colleges 1 Source: City Finance Division Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:141 Menifee Mayor and City Council January 20,2021 Page 778 of 828 CITY OF MENIFEE TAXABLE SALES BY CATEGORY LAST TEN CALENDAR YEARS (IN THOUSANDS OF DOLLARS) -115- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Apparel Stores 26,761$ 27,904$ 29,535$ 30,580$ 27,954$ 30,932$ 34,067$ 35,507$ 38,758$ 41,395$ Auto Dealers and Suppliers 12,975 16,391 20,590 26,155 34,741 42,077 54,191 57,093 53,556 59,676 Building Materials 26,980 27,217 32,152 36,673 40,262 71,069 - - - - Eating and Drinking Places 47,903 53,113 65,823 72,382 80,640 90,887 102,368 116,223 123,562 141,849 Food Stores 25,095 24,892 25,475 26,470 26,342 29,326 28,855 31,882 36,919 39,695 Furniture & Appliances 30,655 43,508 46,616 48,036 51,441 61,039 - - - - General Merchandise 55,483 56,671 58,670 62,730 66,091 68,839 69,542 71,748 75,453 76,431 Packaged Liquor 4,258 4,200 4,734 5,100 5,253 5,965 - - - - Service Stations 78,319 101,166 104,973 100,388 106,979 91,389 84,642 95,334 117,573 123,359 Other Retail Stores 33,008 34,709 36,863 38,921 43,360 47,519 206,277 226,351 237,971 234,076 All other Outlets 70,109 79,471 76,029 86,476 96,505 114,523 128,848 136,300 171,299 182,774 Total 411,546$ 469,242$ 501,460$ 533,911$ 579,568$ 653,565$ 708,790$ 770,438$ 855,091$ 899,255$ Source: State of California Board of Equalization and the HdL Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:142 Menifee Mayor and City Council January 20,2021 Page 779 of 828 CITY OF MENIFEE TOP 25 SALES TAX PRODUCERS FOR FISCAL YEAR ENDED JUNE 30, 2020 AND JUNE 30, 2010 -116- Business Business Business Name Category Business Name Category Americamax Contractors Ahern Rentals Repair Shop/Hand Tool Rentals Arco AM PM Service Stations Albertsons Grocery Stores Liquor Arco AM PM Service Stations Amerimax Building Products Contractors Best Buy Electronics/Appliance Stores Arco AM PM Service Stations BJs Restaurant & Brewhouse Casual Dining Auto Zone Automotive Supply Stores Chevron Service Stations Best Buy Electronics/Appliance Stores Chevron/Circle K Service Stations Chevron Service Stations Circle K Service Stations Chevron Service Stations Grove Lumber & Building Supplies Building Matericals Circle K Service Stations Imperial Sprinkler Supply Garden/Agricultural Supplies Jack in the Box Restaurants No Alcohol In N Out Burger Qucik-Service Restaurants Kohl's Family Apparel Kohls Department Stores McDonald's Restaurants No Alcohol Living Spaces Furniture Home Furnishings Menifee Car Wash Service Stations Lowes Building Matericals Menifee Mart Service Stations Menifee Lakes Plaza Chevron Service Stations Menifee Shell Service Stations Petco Specialty Stores Orco Block Contractors Richardsons Auto & RV Sales Trailers/RVs Red Robin Restaurants Liquor Rite Aid Drug Stores Richardson's Auto & RV Sales Trailers/RVs Ross Dress for Less Family Apparel Rite Aid Drug Stores Shell Service Stations Ross Dress for Less Family Apparel Stater Brothers Grocery Stores Staples Office Supplies/Furniture Target Discount Dept. Stores Stater Bros. Markets Grocery Stores Liquor Texas Roadhouse Casual Dining Target Discount Dept Stores TJ Maxx Family Apparel Vulcan Materials Contractors United Oil Service Stations Walgreens Drug Stores Percentage of Fiscal Year Total Paid by Top 25 Accounts 55.70% 74.18% Source: HdL Reports Firms Listed Alphabetically (April through March data for each year) 2020 2010 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:143 Menifee Mayor and City Council January 20,2021 Page 780 of 828 CITY OF MENIFEE MEASURE DD 1% SALES TAX REVENUES AND EXPENDITURES HISTORY JUNE 30, 2020 -117- Fiscal Year 2017 2018 2019 2020 Revenues 1% Transaction Tax 1,369,814$ 9,961,049$ 11,416,810$ 12,617,232$ Interest Income - 24,668 96,362 141,559 Total Revenue:1,369,814 9,985,717 11,513,172 12,758,791 Expenditures Code Enforcement - - 188,042 234,261 County Sheriff Services - 2,404,849 1,869,310 3,573,072 County Fire Services - 1,969,424 1,768,811 3,893,526 Capital Equipment - - - 593,105 Capital Projects-Roads - 2,852,248 3,791,111 1,646,995 Menifee Police - - 273,779 4,855,886 Total Expenditures:- 7,226,521 7,891,053 14,796,845 Cumulative Balance:1,369,814$ 4,129,010$ 7,751,129$ 5,713,075$ The City's citizens voted and approved the 1% sales tax in November 2016 with the implementation date of January 2017. No information prior to that year is available. Source: Finance Department Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:144 Menifee Mayor and City Council January 20,2021 Page 781 of 828     THIS PAGE INTENTIONALLY LEFT BLANK Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:145 Menifee Mayor and City Council January 20,2021 Page 782 of 828 -1- Independent Accountant’s Report on Agreed-Upon Procedures Applied to the Appropriations Limit Worksheet The Honorable Mayor and City Council City of Menifee, California We have performed the procedures enumerated below, which were agreed to by management of the City of Menifee, California (the City) and the League of California Cities on the accompanying Appropriations Limit Worksheet (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) for the year ended June 30, 2020 and were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City's management is responsible for the Appropriations Limit Worksheet. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures enumerated below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit. Finding: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above. Finding: No exceptions were noted as a result of our procedures. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:146 Menifee Mayor and City Council January 20,2021 Page 783 of 828 The Honorable City Council City of Menifee, California -2- 4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year. Finding: No exceptions were noted as a result of our procedures. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Appropriations Limit Worksheets for the year ended June 30, 2020. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by the League publication entitled Article XIII-B of the California Constitution. This report is intended solely for the information and use of the City Council and management of the City of Menifee, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. San Bernardino, California June 30, 2020 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:147 Menifee Mayor and City Council January 20,2021 Page 784 of 828 -3- 2019-2020 Per Capita Personal Income Change 3.85% Population Change City Population Growth 2.95% CPI Change Converted to a Ratio 1.0385 Population Change Converted to a Ratio 1.0295 Calculation of Growth Factor (1.0385 x 1.0295) 1.0691 2018 - 2019 Limit 40,117,140$ 2019 - 2020 Appropriations Limit $40,117,140 x 1.0691 42,889,234$ CITY OF MENIFEE APPROPRIATIONS LIMIT COMPUTATION 2019 - 2020 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:148 Menifee Mayor and City Council January 20,2021 Page 785 of 828 1 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report To the Honorable City Council City of Menifee Menifee, California We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Menifee (the City) as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 15, 2020. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:149 Menifee Mayor and City Council January 20,2021 Page 786 of 828 Honorable City Council City of Menifee 2 Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. San Bernardino, California December 15, 2020 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:150 Menifee Mayor and City Council January 20,2021 Page 787 of 828 December 15, 2020 To the Honorable City Council City of Menifee, California We have audited the financial statements of the City of Menifee (the City) as of and for the year ended June 30, 2020, and have issued our report thereon dated December 15, 2020. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated April 6, 2020, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:151 Menifee Mayor and City Council January 20,2021 Page 788 of 828 Honorable City Council December 15, 2020 City of Menifee Page 2 Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team and others in our firm, as appropriate, have complied with all relevant ethical requirements regarding independence. Qualitative Aspects of the City’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2020. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements were: Management’s estimate of the fair value of investments in the financial statements is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Management’s estimate of the depreciation expense in the financial statements is based on historical estimates of each capitalized item’s useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives and determined that it is reasonable in relation to the financial statements taken as a whole. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:152 Menifee Mayor and City Council January 20,2021 Page 789 of 828 Honorable City Council December 15, 2020 City of Menifee Page 3 Management’s estimate of the net pension liability and related deferred inflows and outflows in the financial statements is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the financial statements taken as a whole. Management’s estimate of the liability for other post-employment benefits (Net OPEB Liability) and related deferred inflows and outflows in the financial statements is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to: The disclosure of the fair value of investments in the financial statements represents amounts susceptible to market fluctuations. The disclosure of accumulated depreciation in the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item. The disclosure of the net pension liability and related deferred inflows and outflows in the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates. The disclosure of the net OPEB liability and related deferred inflows and outflows in the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates. The disclosure related to possible effects of the COVID-19 pandemic in the notes. The financial statement disclosures are neutral, consistent, and clear. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:153 Menifee Mayor and City Council January 20,2021 Page 790 of 828 Honorable City Council December 15, 2020 City of Menifee Page 4 In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated December 15, 2020. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors. This report is intended solely for the information and use of the City Council, and management of the City and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, San Bernardino, California Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:154 Menifee Mayor and City Council January 20,2021 Page 791 of 828 December 15, 2020 Rogers, Anderson, Malody & Scott, LLP 735 E. Carnegie Drive, Suite 100 San Bernardino, CA 92408 This representation letter is provided in connection with your audit of the financial statements of the City of Menifee (the City) as of June 30, 2020 and for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of the City of Menifee in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP). Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of December 15,2020. Financial Statements • We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated April 6, 2020 for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP. • We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. • We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. • We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements. • We have reviewed, approved, and taken responsibility for the financial statements and related notes. • We have a process to track the status of audit findings and recommendations. • We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. • Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. • Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:155 Menifee Mayor and City Council January 20,2021 Page 792 of 828 Rogers, Anderson, Malody and Scott LLP December 15, 2020 • All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP. • All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are properly disclosed. • All funds and activities are properly classified. • All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users. • All components of net position, non-spendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved. • Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy. • All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. • All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. • All inter-fund and intra-entity transactions and balances have been properly classified and reported. • Deposit and investment risks have been properly and fully disclosed. • Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated. • All required supplementary information is measured and presented within the prescribed guidelines. • With regard to investments and other instruments reported at fair value: − The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action. − The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. − The disclosures related to fair values are complete, adequate, and in accordance with U.S. GAAP. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:156 Menifee Mayor and City Council January 20,2021 Page 793 of 828 Rogers, Anderson, Malody and Scott LLP December 15, 2020 − There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements. • With respect to your assistance with preparation of financial statements and related notes, we have performed the following: − Made all management decisions and performed all management functions; − Assigned a competent individual to oversee the services; − Evaluated the adequacy of the services performed; − Evaluated and accepted responsibility for the result of the service performed; and − Established and maintained internal controls, including monitoring ongoing activities. Information Provided • We have provided you with: − Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; − Additional information that you have requested from us for the purpose of the audit; and − Unrestricted access to persons within the City from whom you determined it necessary to obtain audit evidence. • All transactions have been recorded in the accounting records and are reflected in the financial statements. • We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have no knowledge of any fraud or suspected fraud that affects the City and involves: − Management; − Employees who have significant roles in internal control; or − Others where the fraud could have a material effect on the financial statements. • We have no knowledge of any allegations of fraud, or suspected fraud, affecting the City’s financial statements communicated by employees, former employees, vendors, regulators, or others. • We are not aware of any pending or threatened litigation, claims, and assessments whose effects should be considered when preparing the financial statements. • We have disclosed to you the identity of the City’s related parties and all the related party relationships and transactions of which we are aware. • There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. • The City has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities. Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:157 Menifee Mayor and City Council January 20,2021 Page 794 of 828 Rogers, Anderson, Malody and Scott LLP December 15, 2020 • We have disclosed to you all guarantees, whether written or oral, under which the City is contingently liable. • We have disclosed to you all non-exchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Non-exchange Financial Guarantees, for those guarantees where it is more likely than not that the City will make a payment on any guarantee. • We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year. • We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. • There are no: − Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations. − Un-asserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62. − Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62 − Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12) • The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you. • We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance. • With respect to the supplementary information accompanying the financial statements: − We acknowledge our responsibility for presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America. − We believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. − The methods of measurement or presentation have not changed from those used in the prior period. − When the supplementary information is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:158 Menifee Mayor and City Council January 20,2021 Page 795 of 828 Rogers, Anderson, Malody and Scott LLP December 15, 2020 of the supplementary information no later than the date of issuance by the City of the supplementary information and the auditor’s report thereon. − We acknowledge our responsibility to include the auditor’s report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information. − We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the City of the supplementary information and the auditor’s report thereon. • With respect to the required supplementary information accompanying the financial statements: − We acknowledge our responsibility for the presentation of the required supplementary information in accordance with U.S. GAAP. − We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with U.S. GAAP. − The methods of measurement or presentation have not changed from those used in the prior period. • With respect to the use of a specialist The work of a specialist has been used by the City. − We agree with the findings of specialists in evaluating the City’s pension and other post-employment benefit liabilities and costs and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists. − We believe that the actuarial assumptions and methods used to measure pension and other post-employment benefit liabilities and costs for financial accounting purposes are appropriate in the circumstances. Signature: Title: Deputy Finance Director Printed Name: Wendy Preece Date: December 15, 2020 Item Title:12.1 Comprehensive Annual Financial Report (CAFR)for Fiscal Year End June 30,2020 Item Page Number:159 Menifee Mayor and City Council January 20,2021 Page 796 of 828 CITY OF MENIFEE SUBJECT: City Committee and Commission Appointments MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Stephanie Roseen, Deputy City Clerk REVIEWED BY: Sarah A. Manwaring, City Clerk APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Councilmember Karwin to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 2. Councilmember Liesemeyer to appoint each of the following a) Measure DD Committee Member, and b) Senior Advisory Committee Member; and 3. Mayor Pro Tem Sobek to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member; and 4. Councilmember Deines to appoint each of the following a) Planning Commissioner, b) Measure DD Committee Member, and c) Senior Advisory Committee Member; and 5. Mayor Zimmerman to appoint each of the following a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Measure DD Committee Member, and d) Senior Advisory Committee Member. DISCUSSION Each Councilmember makes an appointment to each advisory Committee and Commission to go alongside with their Council term. Commission terms are four years and Committee terms are two years. At the end of each members’ term, a vacancy exists, which the appointing Councilmember must fill. There are no term limits for Commissioners or Committee Members and Councilmembers may reappoint members. Item Title:12.2 City Committee and Commission Appointments Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 797 of 828 City of Menifee Staff Report Committee and Commission Appointments January 20, 2021 Page 2 of 2 2 5 6 There are specific noticing requirements for vacancies as stated in the Maddy Act. The intent of the Maddy Act is for maximum public awareness of appointments to be made by the City Council and to allow the public an opportunity to participate in their government (Government Code 54970). The Maddy Act requires posting of the attached Local Appointments List and must include appointment and expiration dates, appointment requirements, and meeting information. In an effort to streamline the appointment process while following legal requirements, the City Clerk has implemented a biannual recruitment process for City Committees and Commissions. The notice of vacancies was first published on November 9, 2020 and applications were accepted through December 14, 2020. The City Clerk accepted 40 applications for all vacancies. At the conclusion of the recruitment deadline, the City Clerk compiled all applications for the City Council to review in order to make their appointment selections. If necessary, interviews were scheduled with the appointing Councilmember. Minimum requirements for appointment were vetted through the City Clerk Department. Applicants not selected during this round of appointments will be placed on an interest list for two years and may be contacted if any vacancies occur prior to the next biannual recruitment. All applicants that were not selected will be notified by letter from the City Clerk’s office with contact information for other options to volunteer for their community. STRATEGIC PLAN OBJECTIVE Responsive and Transparent Community Government FISCAL IMPACT There is no fiscal impact associated with the recommended action. ATTACHMENTS 1. 2020 Local Appointment List Item Title:12.2 City Committee and Commission Appointments Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 798 of 828 "S:\Maddy Act Notices\2020\Local Appointment List revised 11-25-2020.doc" CITY OF MENIFEE LOCAL APPOINTMENTS LIST Pursuant to Government Code Section 54972, a Local Appointments List shall be prepared including regular and ongoing commissions whose members serve at the pleasure of the Menifee City Council. Following is an open list of local appointive offices containing the incumbent appointees; dates of appointment; dates terms expire, and the terms which will expire during the next calendar year. To be eligible for appointment to a commission, a person must: 1) be a registered voter within the City; and 2) not be an employee of the City. Planning Commission (Meets 2nd & 4th Wednesday of Each Month at 6:00 PM at City Hall, Council Chambers) Commissioner Appointment Date Term Expiration Appointed By Randy Madrid, Chair January 16, 2019 December 2020 Mayor Bill Zimmerman Christopher Thomas January 16, 2019 December 2020 Councilmember Lesa Sobek Earl Phillips` January 16, 2019 December 2020 Councilmember Greg August Robert Karwin January 16, 2019 December 2022 Councilmember Dean Deines Benjamin Diederich, Vice Chair January 16, 2019 December 2022 Mayor Pro Tem Matt Liesemeyer Parks, Recreation and Trails Commission (Meets 1st Thursday of Each Month at 6:00 PM at City Hall, Council Chambers) Commissioner Appointment Date Term Expiration Appointed By William Ackerman August 7, 2019 December 2020 Mayor Bill Zimmerman Richard Croy January 16, 2019 December 2020 Councilmember Lesa Sobek Vacant December 2020 Councilmember Greg August Anthony Amorelli, Vice Chair January 16, 2019 December 2022 Councilmember Dean Deines Tom Giedroyce, Chair January 16, 2019 December 2022 Mayor Pro Tem Matt Liesemeyer Measure DD Oversight Committee Committee Member Appointment Date Term Expiration Appointed By Arthur King Ma January 16, 2019 January 16, 2021 Mayor Bill Zimmerman Michael Cano, Chair January 16, 2019 January 16, 2021 Councilmember Lesa Sobek Nancy Randolph January 16, 2019 January 16, 2021 Councilmember Greg August Brian Agner January 16, 2019 January 16, 2021 Councilmember Dean Deines Edward Samuelson, Vice Chair January 16, 2019 January 16, 2021 Mayor Pro Tem Matt Liesemeyer Item Title:12.2 City Committee and Commission Appointments Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 799 of 828 "S:\Maddy Act Notices\2020\Local Appointment List revised 11-25-2020.doc" Senior Advisory Committee (Meets 4th Tuesday of Each Month at 10:00 AM at City Hall, Council Chambers) *Must be 55 years or older Committee Member Appointment Date Term Expiration Appointed By Gloria Sanchez, Chair January 16, 2019 January 16, 2021 Mayor Bill Zimmerman Vacant January 16, 2021 Councilmember Lesa Sobek Linda Blanche January 16, 2019 January 16, 2021 Councilmember Greg August Anne-Marie Novack January 16, 2019 January 16, 2021 Councilmember Dean Deines Vacant January 16, 2021 Mayor Pro Tem Matt Liesemeyer Ruth Goulet January 16, 2019 January 16, 2021 All Councilmembers David Morse January 16, 2019 January 16, 2021 All Councilmembers List Updated 11/25/2020 Item Title:12.2 City Committee and Commission Appointments Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 800 of 828 CITY OF MENIFEE SUBJECT: Donation Acceptance Policy, Revision No. 1 MEETING DATE: January 20, 2021 TO: Mayor and City Council PREPARED BY: Imelda Huerta, Senior Management Analyst REVIEWED BY: Jeff Wyman, Assistant City Manager APPROVED BY: Armando G. Villa, City Manager ------------------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Discuss proposed revisions to the Donation Acceptance Policy; and 2. Adopt revisions to the Donation Acceptance Policy. DISCUSSION On June 17, 2020, City Council adopted the Donation Acceptance Policy (CC-21) to formalize the conditions and procedures to be followed by the City in accepting donations. The policy establishes a formal process for acceptance and documentation of donations made to the City in a responsible, transparent, and accountable manner that is consistent with the City’s strategic goals. The policy further defines donations and provides guidance when individuals, community groups, and businesses wish to make donations to the City. Building upon that foundation, staff has identified revisions that clarify and streamline the donation process, while also proposing revisions that create a formal process for handling sponsorship opportunities. Community sponsorships can be an effective means of offsetting costs and expenses while building community partnerships. Private advertising and sponsors can provide an opportunity to develop partnerships with businesses and organizations that share the City’s commitment to providing high quality public services, while increasing funding to support and potentially enhance the delivery of service. Adding a sponsorship component to the policy will establish a standardized process to promote significant and special events and will be a guide for the City in pursuit of sponsorships for public programs and events. Below are additional key proposed revisions: Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:1 Menifee Mayor and City Council January 20,2021 Page 801 of 828 City of Menifee Staff Report Donation Acceptance Policy - Revision 1 January 20, 2021 Page 2 of 4 2 1 6 Definitions Staff, with the assistance of the City Attorney’s Office, included definitions for sponsorships as well as key elements for sponsorships to provide a clear distinction between donations and sponsorships: Sponsor – a company, organization or individual who provides the City with financial support of an event or program that helps offset the costs of event operations. Sponsorship – a financial or in-kind gift from an entity or individual for a specific program, event, project, or site in exchange for tangible and intangible benefits to the sponsor. Sponsorship Agreement – a negotiated agreement between the City and a company, organization, or individual to pay a fee, provide services, share products or any combination thereof, including advertising and promotional opportunities between the City and a company, organization, or individual. Events – one-time activities for the benefit of the public, organized by the City, or in partnership with the City, generally continuing less than one week. Programs – recurring City-led programs for the public; sponsor recognition may continue throughout and following the program’s duration (e.g. funding for summer concert program). Projects – one-time City efforts, often with a product or defined end result. Sites – specific places, varying in scale from individual features or areas to an entire park or facility. Current Procedure for Accepting Unrestricted Donations of Cash and Real Good Staff modified the donations threshold for City Manager approval to align with the Professional Services contract authority (currently $25,000). This modification will allow the City Manager to approve and accept the donation, and recognize by City Council ratification within thirty (30) calendar days corresponding revenues and expenditures associated with the specific donation. The City Council will continue to be notified when such donations are made to the City via monthly reports. Donations with an aggregate value that exceed the City Manager’s Professional Services contract authority will be brought forth to Council for approval. Sponsorships (section added) For sponsorships with an aggregate value of less than $25,000, or as amended periodically to align with the City Manager’s contract authority with respect to Professional Services, the Beneficiary Department Head shall seek approval from the City Manager or designee to accept the sponsorship and recognize by City Council ratification within thirty (30) calendar days corresponding revenues and expenditures associated with specific sponsorship. Beneficiary Department Head shall seek a resolution from the City Council to ratify, accept, appropriate and Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:2 Menifee Mayor and City Council January 20,2021 Page 802 of 828 City of Menifee Staff Report Donation Acceptance Policy - Revision 1 January 20, 2021 Page 3 of 4 2 1 6 expend the sponsorship from the City Council if the sponsorship’s fiscal year aggregate value exceeds $24,999, or as amended periodically to align with the City Manager’s contract authority with respect to Professional Services. Sponsorship Eligibility Criteria (section added) Eligible sponsorship event/program types have been clarified to include the following:  Events/programs providing a benefit to Menifee residents  Events/programs that contribute positively to the recognition and image of the City of Menifee  Events/programs that are open to the public  Events/programs and organizations that demonstrate that they can meet the necessary requirements of the Sponsorship Agreement  The organization’s goals must align with established Council goals Restrictions include the following:  In general, religious and political organizations are not eligible for facility or program sponsorships with the City, nor are businesses, organizations, or individuals whose primary products are firearms, tobacco, alcohol, CBD products, and/or any other subject matter not deemed appropriate by the City Manager  The City reserves the right to decline any sponsor or sponsorship proposal that appears to be in direct competition with the City services/products  No advertising or sponsorship recognition will be allowed on City uniforms unless the clothing is designed specifically for the event or program and has a specified time frame  The City may refuse a sponsorship opportunity based on other factors that might undermine the public confidence in the City’s impartiality or interfere with the efficient delivery of City services or operations  In all cases, the City reserves the right to reject any and all sponsors and sponsorship proposals if the criteria as outlined is not followed or there is the existence of a potential conflict of interest or appearance of a conflict of interest Sponsorships Process and Procedure (section added) Requests for sponsorships may be submitted to the appropriate Department and will be evaluated by the Department Head or designee on a case-by-case basis. Department Heads will consider eligibility requirements together with the purpose, and goals of each independent event. Any sponsorships with nominal cost of in-kind contributions (advertising, etc.) may be approved at the Department Head level with written notification to the City Manager. Sponsorship recognition Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:3 Menifee Mayor and City Council January 20,2021 Page 803 of 828 City of Menifee Staff Report Donation Acceptance Policy - Revision 1 January 20, 2021 Page 4 of 4 2 1 6 messages may identify the sponsor but should not endorse the organizations’ products or services. Examples of sponsorship opportunities include, but are not limited to the following:  Advertising: Advertising provides the sponsor with the opportunity to advertise through a variety of City marketing materials, including print and digital advertising  Programs: Sponsorship of City programs provides the opportunity for the sponsor’s name and logo to appear in advertising and marketing material related to the program  Special Events: Event sponsorship is offered through various sponsorship packages, each package benefits varying in relation to the level of sponsorship Professional Organizations (section added) Professional organizations or institutions, wishing to provide employees with training, workshops, meeting events, meeting space, and/or conference attendance at no cost, does not constitute as a sponsorship or donation, as these benefits are part of promoting a particular program, existing staff paid membership, or the like. STRATEGIC PLAN OBJECTIVE Responsive and Transparent Community Government This policy enhances transparency as related to donations and sponsorships to the City. FISCAL IMPACT: There is no fiscal impact associated with the recommended action. Any revenue received will be evaluated to determine if a mid-year budget adjustment is warranted. ATTACHMENTS 1. CC-21 Policy - Current Donation Acceptance Policy 2. Donation Acceptance Policy - Redlined Revisions 3. Donation Acceptance and Sponsorship Policy - Revised (Proposed) Version Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:4 Menifee Mayor and City Council January 20,2021 Page 804 of 828 Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:5 Menifee Mayor and City Council January 20,2021 Page 805 of 828 Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:6 Menifee Mayor and City Council January 20,2021 Page 806 of 828 Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:7 Menifee Mayor and City Council January 20,2021 Page 807 of 828 Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:8 Menifee Mayor and City Council January 20,2021 Page 808 of 828 Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:9 Menifee Mayor and City Council January 20,2021 Page 809 of 828 Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:10 Menifee Mayor and City Council January 20,2021 Page 810 of 828 CITY OF MENIFEE City Council Policy Policy Number: CC-21 Approving Authority: City Council Subject DONATION ACCEPTANCE AND SPONSORSHIP POLICY Effective Date: 6/17/2020 Last Modified: 1/20/2021 Page 1 of 96 Donations of every type are offered to the City of Menifee (“City”) for general or specific purposes. Uniform criteria and procedures guide the review and acceptance of such donations to: confirm that the City has relevant and adequate resources to administer such donations, ensure that the City appropriately acknowledges the generosity of the donor, and address any potential direct or apparent conflict of interests arising from such donations. Community sponsorships can be an effective me3ans of , offsetting costs and expenses while , creating event stop gaps,building community partnerships. Private advertising and sponsors will provide and opportunity to develop partnerships with businesses and organizations that share the City’s commitment to providing high quality public services, while increasing funding to support and potentially enhance the delivery of service. 1. PURPOSE The purpose of this policy is to establish a formal process for acceptance and documentation of donations made to the City in a responsible, transparent, and accountable manner that is consistent with the City’s strategic goals. This policy provides guidance when individuals, community groups, and businesses wish to make donations to the City. This policy also establishes a standardized process to promote significant and special events and to be a guide for the City in pursuit of sponsorships for public programs and events. AdditionallyAdditionally, the policy establishes the standards for City employees and City officials regarding the acceptance of gifts during the performance of City business. 2. SPECIFIC OBJECTIVES A. To establish and guide relationships with donors who share the City’s commitment to provide a high quality civic environment; B. To enrich our community by responsibly and efficiently managing donations; C. To generate revenue to fund new and existing facilities, projects, programs, and activities for the benefit of the City and its residents; and D. To work with non-profits whose missions support the City’s strategic goals. 3. DEFINITIONS Beneficiary Department Head – the Director of the City department, agency, board, or commission, or his/her designee, for which a donation is designated or intended. The City Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:11 Menifee Mayor and City Council January 20,2021 Page 811 of 828 City of Menifee Policy CC- Page 2 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council June 17, 2020 Manager or designee shall act as the Beneficiary Department Head if no department, agency, board, or commission is designated or intended. Donation or Gift – a monetary (cash) contribution, endowments, personal property, real property, financial securities, equipment, in-kind goods or services, or any other asset that the City has accepted and for which the donor has not received any goods or services in return, or corporate recognition (see sponsorship). Donor – shall mean a person or other legal entity that proposes or provides a donation to the City. Restricted Donation – a donation designated at donor request for a particular City department, location, or purpose. Unrestricted Donation – a donation to the City without any limitations being placed upon its use. Sponsor – a company, organization or individual who provides the City with financial support of an event or program that helps offset the costs of event operations. Sponsorship – financial or in-kind gift from an entity or individual for a specific program, event, project or site in exchange for tangible and intangible benefits to the sponsor. Sponsorship Agreement – a negotiated agreement between the City and a company, organization, or individual to pay a fee, provide services, share products or any combination thereof, including advertising and promotional opportunities between the City and a company, organization, or individual. Events – one-time activities for the benefit of the public, organized by the City, or in partnership with the City, generally continuing less than one week. Programs – City-led for the public; sponsor recognition may continue throughout and following the program’s duration (e.g. funding for summer concert program). Projects – one-time City efforts, often with a product or defined end result. Sites – specific places, varying in scale from individual features or areas to an entire park or facility. 4. GENERAL PRINCIPLES FOR DONATIONS A. This Council Policy is intended to guide the manner in which City staff accepts donations on behalf of the City. B. Donations do not become the property of the City until accepted by the City consistent with this Council Policy. C. Only City officials authorized by this Council Policy may accept donations. D. The City has no obligation to accept any donation proposed by a donor. Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:12 Menifee Mayor and City Council January 20,2021 Page 812 of 828 City of Menifee Policy CC- Page 3 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council June 17, 2020 E. All donations will be evaluated by the City prior to acceptance to determine whether the donation is in the City’s best interest and is consistent with applicable City laws, policies, ordinances, and resolutions. F. The City does not provide legal, accounting, tax or other such advice to donors. Each donor is ultimately responsible for ensuring the donor’s proposed donation meets and furthers the donor’s charitable, financial, and estate planning goals. As such, each donor is encouraged to meet with a professional advisor before making any donation to the City. G. The City must determine whether an expenditure of City funds, either a direct outlay of City funds or the use of City forces and materials, is associated with or required by acceptance of the donation prior to acceptance. H. The donation must be used for official City business, and not for political activities or other personal business. I. A donor may restrict a donation for a particular City department, location or purpose, but not designate the City official who may use the donation. J. If required, the City will report a donation made to the City to the Fair Political Practices Commission (FPPC) in accordance with the timelines and directives described in title 2, section 18944 of the California Code of Regulations. K. If a donation to the City is made at an elected City official’s behest from a single source in a calendar year, and the donation meets or exceeds the amount established by the FPPC, the elected City official must file a FPPC Form 803 with the City Clerk disclosing this information. L. The Beneficiary Department Head is responsible for acknowledging receipt of and thanking, on behalf of the City, the donors of donations. M. The City shall comply with all applicable laws and regulations of the Internal Revenue Service regarding the acceptance of donations. N. The Beneficiary Department Head shall work with the City Manager and his/her designee to determine the appropriate accounting for the donation. 5. PROCEDURE FOR ACCEPTING UNRESTRICTED DONATIONS OF CASH AND REAL GOODS All unrestricted donations to the City, including offers to employees related to the City, shall immediately be submitted for consideration of acceptance. Based on the value of the donation offered as outlined below, appropriate City staff shall review every donation and determine if the benefits to be derived warrant acceptance of the donation. The following points list the threshold amounts for donation acceptance: A. Donations of Cash and Real Goods: Donations of cash and real goods may be accepted upon completion of the following process: Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:13 Menifee Mayor and City Council January 20,2021 Page 813 of 828 City of Menifee Policy CC- Page 4 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council June 17, 2020 i. The Beneficiary Department Head shall evaluate whether the donation: a. is in the City’s best interest and consistent with applicable City laws, policies, ordinances, and resolutions; b. has any special restrictions and if so, if those restrictions are acceptable to the City; c. obligates the City to make an immediate or initial City expenditure which has not been included in the approved City budget; and d. creates a new, one-time or on-going general maintenance obligation for the City. ii. For donations with an aggregate value of less than $125,00000,000, or as amended periodically to align with the City Manager’s contract authority with respect to Professional Services, the Beneficiary Department Head shall seek approval from the City Manager or designee to accept the donation and shall seek approval, by resolution, from City Council to appropriate and expend the donation.recognize by City Council ratification within thirty (30) calendar days corresponding revenues and expenditures associated with specific donation . iii. For donations with an aggregate value of $25,000100,000 or more, the Beneficiary Department Head shall seek approval, by resolution, from the City Council to accept, appropriate and expend the donation. iii. iv. The Beneficiary Department Head shall give notice of the City Manager’s or City Council’s decision to the donor within ten (10) business days following the City’s determination to accept or reject the proposed donation. B. Donations for gratuitous purposes (e.g. holiday gift baskets, etc.) to any employee, department, or the City shall be made available to benefit all employees and does not require City Manager approval unless the value is over $499. 6. PROCEDURE FOR ACCEPTANCE OF RESTRICTED DONATIONS OF CASH OR TANGIBLE ITEMS Based on the value of the restricted donation offer as outlined in Section V above, appropriate City staff will review the conditions of any designated donation and determine if the benefits to be derived warrant acceptance of the donation. Criteria for the evaluation include but are not limited to: A. Consideration of an immediate or initial expenditure is required in order to accept the donation; B. The potential and extent of the City’s obligation to maintain, match, or supplement the donation. Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:14 Menifee Mayor and City Council January 20,2021 Page 814 of 828 City of Menifee Policy CC- Page 5 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council June 17, 2020 7. CONSISTENCY WITH CITY INTERESTS A. Restricted donations may only be accepted when they have a purpose consistent with the City’s goals and objectives and are in the best interest of Menifee. B. The City must always consider the public trust and comply with all applicable laws when accepting donations. 8. ACKNOWLEDGEMENT OF DONATIONS A. A Donation Acceptance Form is required to be completed by the receiving Department Director or the City Manager’s Office for all donations provided to the City. B. Acknowledgement of the donation should be in writing and be the responsibility of the Department Director who is the beneficiary of the donation. Undesignated donations shall be acknowledged by the City Manager. A copy of the acknowledgement should be forwarded to donors. C. The Donor Acceptance Form including the donor names and donation amounts are public information subject to disclosure pursuant to the California Public Records Act. 9. DECLINED DONATIONS The City of Menifee reserves the right to decline any donation if, upon review, acceptance of the donation offer is determined in the sole discretion of the City to be not in the best interests of the City. 10. DISSEMINATION OF INFORMATION A. A copy of each Donation Acceptance Form for accepted donations shall be forwarded for information to the City Council by the City Manager’s Office. B. A copy of each Donation Acceptance Form for accepted donations shall be forwarded for information to the Finance Department and the designated department for which the donation was assigned. C. Each original Donation Acceptance Form shall be maintained by the City Clerk’s Office. 11. SPONSORSHIPS TO CITY A. For sponsorships with an aggregate value of less than $25,000, or as amended periodically to align with the City Manager’s contract authority with respect to Professional Services, the Beneficiary Department Head shall seek approval from the City Manager or designee to accept the sponsorship and recognize by Council ratification within thirty (30) calendar days corresponding revenues and expenditures associated with specific sponsorship. Beneficiary Department Head shall seek a resolution from the City Council to ratify, accept, appropriate and expend the sponsorship from the City Council if the sponsorship’s fiscal year aggregate value exceeds $24,999, or as amended periodically to align with the City Manager’s contract authority with respect to Professional Services. Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:15 Menifee Mayor and City Council January 20,2021 Page 815 of 828 City of Menifee Policy CC- Page 6 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council June 17, 2020 12. SPONSORSHIP ELIGIBILITY CRITERIA A. Event/program types shall include the following: i. Events/programs providing a benefit to Menifee residents ii. Events/programs that contribute positively to the recognition and image of the City of Menifee iii. Events/programs that are open to the general public iv. Events/programs and organizations that demonstrate that they can meet the necessary requirements of the Sponsorship Agreement v. The organization’s goals must align with established Council goals B. Restrictions i. In general, religious and political organizations are not eligible for facility or program sponsorships with the City, nor are businesses, organizations or individuals whose primary products are firearms, tobacco, alcohol, CBD products, and/or any other subject matter not deemed appropriate by the City Manager. ii. The City reserves the right to decline any sponsor or sponsorship proposal that appears to be in direct competition with the City services/products. iii. No advertising or sponsorship recognition will be allowed on a City uniform unless the clothing is designed specifically for the event or program and has a specified time frame. iv. Other factors that might undermine the public confidence in the City’s impartiality or interfere with the efficient delivery of City services or operations. v. In all cases, the City reserves the right to reject any and all sponsors and sponsorship proposals if the criteria as outlined is not followed or there is the existence of a potential conflict of interest or appearance of a conflict of interest. 13. SPONSORSHIPS PROCESS AND PROCEDURE A. Sponsorship requests may be submitted to the appropriate Department and will be evaluated by the Department Head or designee on a case by case basis related to the eligibility requirements, purpose and goals of each independent event and/or program. Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:16 Menifee Mayor and City Council January 20,2021 Page 816 of 828 City of Menifee Policy CC- Page 7 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council June 17, 2020 B. Sponsorship agreements projected to generate or where the level of in-kind contributions is valued in excess of the City Manager’s contract authority shall be brought before the City Council. C. Sponsorship opportunities with nominal cost of in-kind contributions (e.g. advertising, permit fees, etc.) may be approved at the Department Head level with written notification to the City Manager. D. Evaluation of sponsorship opportunities shall be fair and impartial. E. Sponsorship recognition messages may identify the sponsor but should not endorse the organizations’ products or services. F. Sponsorship opportunities include but are not limited to: i. Advertising: Advertising provides the sponsor with the opportunity to advertise through a variety of City marketing materials, including print and digital advertising. ii. Programs: Sponsorship of City programs provides the opportunity for the sponsor’s name and logo to appear in advertising and marketing material related to the program. iii. Special Events: Even sponsorship is offered through various sponsorship packages, each package benefits varying in relation to the level of sponsorship. 14. PROFESSIONAL ORGANIZATIONS A. Professional organizations or institutions, wishing to provide employees with training, workshops, meeting events, meeting space, and/or conference attendance at no cost, does not constitute as a sponsorship or donation, as these benefits are part of promoting a particular program, existing staff paid membership, or the like.. 15. ACCEPTANCE OF GIFTS TO EMPLOYEES AND/OR ELECTED OFFICIALS OF THE CITY 11. A. Employees and officials of the City are required to be objective and fair in dealing with the public and persons or firms doing business in the City. Employees shall not solicit or accept gifts or gratuities for the performance of their City job responsibilities. B. No City official or employee shall directly or indirectly solicit, accept, or attempt to accept any money, fee, credit, gift, gratuity, object of value, or compensation of any kind which the official or employee knows, or has reason to know is being offered: i. For the purpose of improperly obtaining or rewarding favorable treatment; ii. With interest to influence the official or employee in the discharge of official duties; or, Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:17 Menifee Mayor and City Council January 20,2021 Page 817 of 828 City of Menifee Policy CC- Page 8 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council June 17, 2020 iii. In consideration of having exercised official powers or performed official duties. C. Anonymous gifts shall be delivered to the City Manager for appropriate disposition. D. This policy does not prohibit a City official from accepting anything of value by way of a gift when such a gift is made to and accepted on behalf of, the City of Menifee. All such gifts to the City shall be forwarded to the City Manager if the value is over $499, as noted in Section 5V.B2. for compliance with this policy whenever possible; the City Manager, or designee, will ensure that all such gifts are shared by all City staff. An example of such gifts would be those received during holiday periods. E. Under the Political Reform Act, public officials and employees are required to disclose certain personal financial holdings as outlined in California Government Code sections 81000-91014. The Fair Political Practices Commission requires all public officials and employees to file a ‘conflict-of-interest statement,’ known as Form 700. Schedule D of Form 700 details requirements in reporting gifts of a dollar value, and shall be used. F. All tickets and passes offered or provided to the City by a third party are distributed per City Council Ticket Policy, Number CC-03. 12.16. SOLICITING DONATIONS A. Soliciting donations by the City creates certain practical and ethical difficulties. City employees and officials should use good judgment in dealing with potential donors to avoid the appearance of impropriety. i. Unless assigned as part of a specific program, employees shall not solicit donations while on duty. Members shall not solicit donations in uniform. ii. Employees may discuss Department needs with individuals or groups and are encouraged to work with community members and groups to form problem- solving partnerships. Discussion of partnership needs, and methods for the community to meet those needs is not a solicitation unless the circumstances indicate that it is a ruse for a solicitation. iii. The requirement to use good judgment in dealing with donors extends to solicitations or acceptance of donations for police-related activities or groups (e.g., Police Officers Association, Volunteer Program, Investigators Associations, Crime Watch, Crime Stoppers). Employees shall not solicit for these activities or groups while on duty and shall not make such solicitations while in uniform. Employees must make it clear to the donor(s) whether their donations are going to the Police Department or to another community benefit. iv. Prior to soliciting large businesses, major community organizations, or recognized major donors, the City shall submit a request for approval to the City Manager. The reasons for this consultation are to ensure the donation is in the best interest of the Department, that major donors are not confronted with multiple or competing requests from different departments within the City, and to track donations. Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:18 Menifee Mayor and City Council January 20,2021 Page 818 of 828 City of Menifee Policy CC- Page 9 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council June 17, 2020 Revision History Revision No. Date Approved Approved By: Comments 0 6/17/2020 City Council Original Policy 1 1/20/2021 City Council Revision ____________________________________ _______________________ Bill Zimmerman, Mayor Date Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:19 Menifee Mayor and City Council January 20,2021 Page 819 of 828 CITY OF MENIFEE City Council Policy Policy Number: CC-21 Approving Authority: City Council Subject DONATION ACCEPTANCE AND SPONSORSHIP POLICY Effective Date: 6/17/2020 Last Modified: 1/20/2021 Page 1 of 9 Donations of every type are offered to the City of Menifee (“City”) for general or specific purposes. Uniform criteria and procedures guide the review and acceptance of such donations to: confirm that the City has relevant and adequate resources to administer such donations, ensure that the City appropriately acknowledges the generosity of the donor, and address any potential direct or apparent conflict of interests arising from such donations. Community sponsorships can be an effective means of offsetting costs and expenses while building community partnerships. Private advertising and sponsors will provide an opportunity to develop partnerships with businesses and organizations that share the City’s commitment to providing high quality public services, while increasing funding to support and potentially enhance the delivery of service. 1. PURPOSE The purpose of this policy is to establish a formal process for acceptance and documentation of donations made to the City in a responsible, transparent, and accountable manner that is consistent with the City’s strategic goals. This policy provides guidance when individuals, community groups, and businesses wish to make donations to the City. This policy also establishes a standardized process to promote significant and special events and to be a guide for the City in pursuit of sponsorships for public programs and events. Additionally, the policy establishes the standards for City employees and City officials regarding the acceptance of gifts during the performance of City business. 2. SPECIFIC OBJECTIVES A. To establish and guide relationships with donors who share the City’s commitment to provide a high quality civic environment; B. To enrich our community by responsibly and efficiently managing donations; C. To generate revenue to fund new and existing facilities, projects, programs, and activities for the benefit of the City and its residents; and D. To work with non-profits whose missions support the City’s strategic goals. 3. DEFINITIONS Beneficiary Department Head – the Director of the City department, agency, board, or commission, or his/her designee, for which a donation is designated or intended. The City Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:20 Menifee Mayor and City Council January 20,2021 Page 820 of 828 City of Menifee Policy CC- Page 2 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council January 20, 2021 Manager or designee shall act as the Beneficiary Department Head if no department, agency, board, or commission is designated or intended. Donation or Gift – a monetary (cash) contribution, endowments, personal property, real property, financial securities, equipment, in-kind goods or services, or any other asset that the City has accepted and for which the donor has not received any goods or services in return, or corporate recognition (see sponsorship). Donor – shall mean a person or other legal entity that proposes or provides a donation to the City. Restricted Donation – a donation designated at donor request for a particular City department, location, or purpose. Unrestricted Donation – a donation to the City without any limitations being placed upon its use. Sponsor – a company, organization or individual who provides the City with financial support of an event or program that helps offset the costs of event operations. Sponsorship – financial or in-kind gift from an entity or individual for a specific program, event, project or site in exchange for tangible and intangible benefits to the sponsor. Sponsorship Agreement – a negotiated agreement between the City and a company, organization, or individual to pay a fee, provide services, share products or any combination thereof, including advertising and promotional opportunities between the City and a company, organization, or individual. Events – one-time activities for the benefit of the public, organized by the City, or in partnership with the City, generally continuing less than one week. Programs – City-led for the public; sponsor recognition may continue throughout and following the program’s duration (e.g., funding for summer concert program). Projects – one-time City efforts, often with a product or defined end result. Sites – specific places, varying in scale from individual features or areas to an entire park or facility. 4. GENERAL PRINCIPLES FOR DONATIONS A. This Council Policy is intended to guide the manner in which City staff accepts donations on behalf of the City. B. Donations do not become the property of the City until accepted by the City consistent with this Council Policy. C. Only City officials authorized by this Council Policy may accept donations. D. The City has no obligation to accept any donation proposed by a donor. Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:21 Menifee Mayor and City Council January 20,2021 Page 821 of 828 City of Menifee Policy CC- Page 3 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council January 20, 2021 E. All donations will be evaluated by the City prior to acceptance to determine whether the donation is in the City’s best interest and is consistent with applicable City laws, policies, ordinances, and resolutions. F. The City does not provide legal, accounting, tax or other such advice to donors. Each donor is ultimately responsible for ensuring the donor’s proposed donation meets and furthers the donor’s charitable, financial, and estate planning goals. As such, each donor is encouraged to meet with a professional advisor before making any donation to the City. G. The City must determine whether an expenditure of City funds, either a direct outlay of City funds or the use of City forces and materials, is associated with or required by acceptance of the donation prior to acceptance. H. The donation must be used for official City business, and not for political activities or other personal business. I. A donor may restrict a donation for a particular City department, location or purpose, but not designate the City official who may use the donation. J. If required, the City will report a donation made to the City to the Fair Political Practices Commission (FPPC) in accordance with the timelines and directives described in title 2, section 18944 of the California Code of Regulations. K. If a donation to the City is made at an elected City official’s behest from a single source in a calendar year, and the donation meets or exceeds the amount established by the FPPC, the elected City official must file a FPPC Form 803 with the City Clerk disclosing this information. L. The Beneficiary Department Head is responsible for acknowledging receipt of and thanking, on behalf of the City, the donors of donations. M. The City shall comply with all applicable laws and regulations of the Internal Revenue Service regarding the acceptance of donations. N. The Beneficiary Department Head shall work with the City Manager and his/her designee to determine the appropriate accounting for the donation. 5. PROCEDURE FOR ACCEPTING UNRESTRICTED DONATIONS OF CASH AND REAL GOODS All unrestricted donations to the City, including offers to employees related to the City, shall immediately be submitted for consideration of acceptance. Based on the value of the donation offered as outlined below, appropriate City staff shall review every donation and determine if the benefits to be derived warrant acceptance of the donation. The following points list the threshold amounts for donation acceptance: A. Donations of Cash and Real Goods: Donations of cash and real goods may be accepted upon completion of the following process: i.The Beneficiary Department Head shall evaluate whether the donation: Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:22 Menifee Mayor and City Council January 20,2021 Page 822 of 828 City of Menifee Policy CC- Page 4 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council January 20, 2021 a. is in the City’s best interest and consistent with applicable City laws, policies, ordinances, and resolutions; b. has any special restrictions and if so, if those restrictions are acceptable to the City; c. obligates the City to make an immediate or initial City expenditure which has not been included in the approved City budget; and d. creates a new, one-time, or on-going general maintenance obligation for the City. ii.For donations with an aggregate value of less than $25,000, or as amended periodically to align with the City Manager’s contract authority with respect to Professional Services, the Beneficiary Department Head shall seek approval from the City Manager or designee to accept the donation and recognize by City Council ratification within thirty (30) calendar days corresponding revenues and expenditures associated with specific donation. iii.For donations with an aggregate value of $25,000 or more, the Beneficiary Department Head shall seek approval, by resolution, from the City Council to accept, appropriate and expend the donation. iv.The Beneficiary Department Head shall give notice of the City Manager’s or City Council’s decision to the donor within ten (10) business days following the City’s determination to accept or reject the proposed donation. B. Donations for gratuitous purposes (e.g., holiday gift baskets, etc.) to any employee, department, or the City shall be made available to benefit all employees and does not require City Manager approval unless the value is over $499. 6. PROCEDURE FOR ACCEPTANCE OF RESTRICTED DONATIONS OF CASH OR TANGIBLE ITEMS Based on the value of the restricted donation offer as outlined in Section V above, appropriate City staff will review the conditions of any designated donation and determine if the benefits to be derived warrant acceptance of the donation. Criteria for the evaluation include but are not limited to: A. Consideration of an immediate or initial expenditure is required in order to accept the donation; B. The potential and extent of the City’s obligation to maintain, match, or supplement the donation. 7. CONSISTENCY WITH CITY INTERESTS Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:23 Menifee Mayor and City Council January 20,2021 Page 823 of 828 City of Menifee Policy CC- Page 5 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council January 20, 2021 A. Restricted donations may only be accepted when they have a purpose consistent with the City’s goals and objectives and are in the best interest of Menifee. B. The City must always consider the public trust and comply with all applicable laws when accepting donations. 8. ACKNOWLEDGEMENT OF DONATIONS A. A Donation Acceptance Form is required to be completed by the receiving Department Director or the City Manager’s Office for all donations provided to the City. B. Acknowledgement of the donation should be in writing and be the responsibility of the Department Director who is the beneficiary of the donation. Undesignated donations shall be acknowledged by the City Manager. A copy of the acknowledgement should be forwarded to donors. C. The Donor Acceptance Form including the donor names and donation amounts are public information subject to disclosure pursuant to the California Public Records Act. 9. DECLINED DONATIONS The City of Menifee reserves the right to decline any donation if, upon review, acceptance of the donation offer is determined in the sole discretion of the City to be not in the best interests of the City. 10. DISSEMINATION OF INFORMATION A. A copy of each Donation Acceptance Form for accepted donations shall be forwarded for information to the City Council by the City Manager’s Office. B. A copy of each Donation Acceptance Form for accepted donations shall be forwarded for information to the Finance Department and the designated department for which the donation was assigned. C. Each original Donation Acceptance Form shall be maintained by the City Clerk’s Office. 11. SPONSORSHIPS TO CITY i.A.For sponsorships with an aggregate value of less than $25,000, or as amended periodically to align with the City Manager’s contract authority with respect to Professional Services, the Beneficiary Department Head shall seek approval from the City Manager or designee to accept the sponsorship and recognize by Council ratification within thirty (30) calendar days corresponding revenues and expenditures associated with specific sponsorship. Beneficiary Department Head shall seek a resolution from the City Council to ratify, accept, appropriate and expend the sponsorship from the City Council if the sponsorship’s fiscal year aggregate value exceeds $24,999, or as amended periodically to align with the City Manager’s contract authority with respect to Professional Services. Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:24 Menifee Mayor and City Council January 20,2021 Page 824 of 828 City of Menifee Policy CC- Page 6 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council January 20, 2021 i. Staff will endeavor to have all sponsorships ratified before City Council within thirty (30) calendar days. ii. All sponsorships resulting in direct expenditure and/or revenue appropriation increases regardless of amount shall be ratified by City Council within thirty (30) calendar days, whenever possible. 12. SPONSORSHIP ELIGIBILITY CRITERIA A. Event/program types shall include the following: i. Events/programs providing a benefit to Menifee residents ii. Events/programs that contribute positively to the recognition and image of the City of Menifee iii. Events/programs that are open to the general public iv. Events/programs and organizations that demonstrate that they can meet the necessary requirements of the Sponsorship Agreement v. The organization’s goals must align with established Council goals B. Restrictions i. In general, religious and political organizations are not eligible for facility or program sponsorships with the City, nor are businesses, organizations or individuals whose primary products are firearms, tobacco, alcohol, CBD products, and/or any other subject matter not deemed appropriate by the City Manager. ii. The City reserves the right to decline any sponsor or sponsorship proposal that appears to be in direct competition with the City services/products. iii. No advertising or sponsorship recognition will be allowed on a City uniform unless the clothing is designed specifically for the event or program and has a specified time frame. iv. Other factors that might undermine the public confidence in the City’s impartiality or interfere with the efficient delivery of City services or operations. v. In all cases, the City reserves the right to reject any and all sponsors and sponsorship proposals if the criteria as outlined is not followed or there is the existence of a potential conflict of interest or appearance of a conflict of interest. 13. SPONSORSHIPS PROCESS AND PROCEDURE Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:25 Menifee Mayor and City Council January 20,2021 Page 825 of 828 City of Menifee Policy CC- Page 7 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council January 20, 2021 A. Sponsorship requests may be submitted to the appropriate Department and will be evaluated by the Department Head or designee on a case-by-case basis related to the eligibility requirements, purpose and goals of each independent event and/or program. B. Sponsorship agreements projected to generate or where the level of in-kind contributions is valued in excess of the City Manager’s contract authority shall be brought before the City Council. C. Sponsorship opportunities with nominal cost of in-kind contributions (e.g., advertising, permit fees, etc.) may be approved at the Department Head level with written notification to the City Manager. D. Evaluation of sponsorship opportunities shall be fair and impartial. E. Sponsorship recognition messages may identify the sponsor but should not endorse the organizations’ products or services. F. Sponsorship opportunities include but are not limited to: i. Advertising: Advertising provides the sponsor with the opportunity to advertise through a variety of City marketing materials, including print and digital advertising. ii. Programs: Sponsorship of City programs provides the opportunity for the sponsor’s name and logo to appear in advertising and marketing material related to the program. iii. Special Events: Even sponsorship is offered through various sponsorship packages, each package benefits varying in relation to the level of sponsorship. 14. PROFESSIONAL ORGANIZATIONS A. Professional organizations or institutions, wishing to provide employees with training, workshops, meeting events, meeting space, and/or conference attendance at no cost, does not constitute as a sponsorship or donation, as these benefits are part of promoting a particular program, existing staff paid membership, or the like. 15. ACCEPTANCE OF GIFTS TO EMPLOYEES AND/OR ELECTED OFFICIALS OF THE CITY A. Employees and officials of the City are required to be objective and fair in dealing with the public and persons or firms doing business in the City. Employees shall not solicit or accept gifts or gratuities for the performance of their City job responsibilities. B. No City official or employee shall directly or indirectly solicit, accept, or attempt to accept any money, fee, credit, gift, gratuity, object of value, or compensation of any kind which the official or employee knows, or has reason to know is being offered: ii.i.For the purpose of improperly obtaining or rewarding favorable treatment; Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:26 Menifee Mayor and City Council January 20,2021 Page 826 of 828 City of Menifee Policy CC- Page 8 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council January 20, 2021 iii.ii.With interest to influence the official or employee in the discharge of official duties; or, iv.iii.In consideration of having exercised official powers or performed official duties. C. Anonymous gifts shall be delivered to the City Manager for appropriate disposition. D. This policy does not prohibit a City official from accepting anything of value by way of a gift when such a gift is made to and accepted on behalf of, the City of Menifee. All such gifts to the City shall be forwarded to the City Manager if the value is over $499, as noted in Section 5.B. for compliance with this policy whenever possible; the City Manager, or designee, will ensure that all such gifts are shared by all City staff. An example of such gifts would be those received during holiday periods. E. Under the Political Reform Act, public officials and employees are required to disclose certain personal financial holdings as outlined in California Government Code sections 81000-91014. The Fair Political Practices Commission requires all public officials and employees to file a ‘conflict-of-interest statement,’ known as Form 700. Schedule D of Form 700 details requirements in reporting gifts of a dollar value and shall be used. F. All tickets and passes offered or provided to the City by a third party are distributed per City Council Ticket Policy, Number CC-03. 16. SOLICITING DONATIONS A. Soliciting donations by the City creates certain practical and ethical difficulties. City employees and officials should use good judgment in dealing with potential donors to avoid the appearance of impropriety. i. Unless assigned as part of a specific program, employees shall not solicit donations while on duty. Members shall not solicit donations in uniform. ii. Employees may discuss Department needs with individuals or groups and are encouraged to work with community members and groups to form problem- solving partnerships. Discussion of partnership needs, and methods for the community to meet those needs is not a solicitation unless the circumstances indicate that it is a ruse for a solicitation. iii. The requirement to use good judgment in dealing with donors extends to solicitations or acceptance of donations for police-related activities or groups (e.g., Police Officers Association, Volunteer Program, Investigators Associations, Crime Watch, Crime Stoppers). Employees shall not solicit for these activities or groups while on duty and shall not make such solicitations while in uniform. Employees must make it clear to the donor(s) whether their donations are going to the Police Department or to another community benefit. iv. Prior to soliciting large businesses, major community organizations, or recognized major donors, the City shall submit a request for approval to the City Manager. The reasons for this consultation are to ensure the donation is in the Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:27 Menifee Mayor and City Council January 20,2021 Page 827 of 828 City of Menifee Policy CC- Page 9 of 9 DONATION ACCEPTANCE POLICY Approved By: City Council January 20, 2021 best interest of the Department, that major donors are not confronted with multiple or competing requests from different departments within the City, and to track donations. Revision History Revision No.Date Approved Approved By: Comments 0 6/17/2020 City Council Original Policy 1 1/20/2021 City Council Revision ____________________________________ _______________________ Bill Zimmerman, Mayor Date Item Title:12.3 Donation Acceptance Policy,Revision No.1 Item Page Number:28 Menifee Mayor and City Council January 20,2021 Page 828 of 828