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2020-10-21 City Council Regular MEETING - Agenda PacketCity Council Chambers Menifee City Council Via RingCentral (see below) Regular Meeting Agenda Menifee, CA 92586 Wednesday, October 21, 2020 6:00 PM 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 AGENDA AS A RESULT OF THE COVID-19 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: VIDEO: https://meetings.ringcentral.com/j/3668649023 PHONE: (623) 404-9000, MEETING ID #3668649023 PUBLIC COMMENTS: TO SUBMIT PUBLIC COMMENTS EMAIL publiccomments@cityofmenifee.us FOR MORE INFORMATION GO TO http://cityofmenifee.us/621/Virtual-City-Clerk-Services, OR CONTACT THE CITY CLERK DEPARTMENT AT (951) 672-6777. REGULAR MEETING (6:00 P.M.) 1. CALL TO ORDER 2. ROLL CALL 3. WORDS OF INSPIRATION 3.1. Pastor Grace, Unity Beth Nathanael Church 4. PLEDGE OF ALLEGIANCE 5. PRESENTATIONS 5.1. Interactive Construction Projects Map 5.2. Menifee Valley Chamber of Commerce 90-Day Report 6. AGENDA APPROVAL OR MODIFICATIONS 7. PUBLIC COMMENTS (NON-AGENDA 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 non- agendized matters at the time such comments are made. Each speaker will be limited to three minutes on any single item. Please submit a completed speaker card to the City Clerk. Menifee Mayor and City Council Regular Meeting Agenda Wednesday, October 21, 2020 Page 2 of 4 8. COUNCILMEMBER UPDATES AND COMMENTS 9. APPROVAL OF MINUTES 9.1. Approval of Minutes of September 30, 2020 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 in Full of Any and all Ordinances Listed on this Agenda and Provide that they be read by Title Only 10.2. Dr. Judy White Retirement Proclamation RECOMMENDED ACTION Approve the Proclamation per the Council Recognition Policy. 10.3. Warrant Register RECOMMENDED ACTION Ratify and approve the Voucher List dated 9/25/2020, the Payroll Register/Other EFT’s dated 9/23/2020, 10/1/2020,10/2/2020 and the Void Check Listing PE 9/30/2020 which have a total budgetary impact of $4,827,960.66. 10.4. Treasurer's Report, September 2020 RECOMMENDED ACTION Approve the Treasurer’s Report for September 2020. 10.5. Joint Powers Agreement and Bylaws for California Intergovernmental Risk Authority RECOMMENDED ACTION Adopt Joint Powers Agreement and Bylaws for the California Intergovernmental Risk Authority (CIRA), which permits the merger or joining of the Public Agency Risk Sharing Authority of California (PARSAC) and the Redwood Empire Municipal Insurance Fund (REMIF). 10.6. Budget Carryovers to Fiscal Year 2020/21 RECOMMENDED ACTION Approve the balance of budget carryovers, as of June 30, 2020 for all ongoing operating requests, ongoing grants, and capital programs to Fiscal Year 2020/21. 10.7. Business License Renewal Fee Waiver RECOMMENDED ACTION Waive the 2021 calendar year business license renewal fee of $35 for businesses physically located within City of Menifee boundaries. Menifee Mayor and City Council Regular Meeting Agenda Wednesday, October 21, 2020 Page 3 of 4 10.8. Streetlights Retrofit Project - Western Riverside Council of Government Request RECOMMENDED ACTION Approve the Western Riverside Council of Government’s (WRCOG) request of $159,771 to be funded from the City’s Streetlight Retrofit Project Rebate. 10.9. Conflict of Interest Code with Required Form 700 Filers Update RECOMMENDED ACTION Adopt a Resolution amending the City of Menifee Conflict of Interest Code, which lists FPPC Form 700 filers, and receive the 2020 biennial notice. 10.10. Comprehensive Economic Development Strategy (CEDS) Annual Update RECOMMENDED ACTION Receive and file the City of Menifee Comprehensive Economic Development Strategy (CEDS) Annual Update. 10.11. Final Map for Tentative Tract Map 37576, Meadow Run by Meritage Homes of California, Inc. RECOMMENDED ACTION 1. Approve the Bond Agreement for Road and Drainage, and Water and Sewer System Improvements for Tract Map 37576, located at the southeast corner of Bradley Road and Holland Road; and 2. Approve the Bond Agreement for the placement of Survey Monuments; and 3. Approve and authorize the filing of the Final Map for Tentative Tract Map 37576. 10.12. Fiscal Year 2020/21 City Street Sweeping Agreement with CR&R Inc. RECOMMENDED ACTION 1. Approve Maintenance Services Agreement in the not-to-exceed amount of $55,099.51 with CR&R Inc. for FY 20/21 Street Sweeping Services; 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). ITEMS PULLED FROM CONSENT 11. PUBLIC HEARING ITEMS – None 12. DISCUSSION ITEMS 12.1. COVID-19 Financial Impact Report - Quarter 1, FY20-21 RECOMMENDED ACTION Review and discuss the financial impacts from COVID-19 of the first quarter of Fiscal Year 2020-21 (July to September 2020). Menifee Mayor and City Council Regular Meeting Agenda Wednesday, October 21, 2020 Page 4 of 4 12.2. Menifee Keep Existing Employers Profitable Business Walk and COVID-19 Business Report RECOMMENDED ACTION Receive and file the 2020 Menifee K.E.E.P (Keep Existing Employers Profitable) Business Walk and COVID-19 Business Report. 12.3. Animal Services Joint Powers Authority Membership RECOMMENDED ACTION 1. Join an Animal Services Joint Powers Authority (JPA) by Authorizing the Mayor to approve the Fourth Amendment to the JPA Agreement between the County of Riverside; the City of Canyon Lake; the City of Lake Elsinore; the City of Murrieta; the City of Temecula; the City of Wildomar; and the City of Menifee for the Southwest Communities Financing Authority (Animal Shelter); and 2. Request that the Mayor Appoint a Member of the Animal Shelter JPA Board. 13. CITY ATTORNEY REPORTS 14. CITY MANAGER REPORTS 15. FUTURE AGENDA REQUESTS FROM COUNCIL MEMBERS ➢ Discuss strategy to address phase-out of illegal uses (Liesemeyer, July 18, 2018) Target Date: TBD ➢ Workshop to discuss residential uses in EDC (Zimmerman, December 18, 2019) Target Date: TBD ➢ WRCOG presentation on Community Choice Aggregation (Liesemeyer, February 5, 2020) Target Date: TBD ➢ Review and Revisions to Committee Resolutions (Liesemeyer, February 5, 2020) Target Date: November 2020 ➢ Post Pandemic Report and Update on New Technology Implementations (Deines, April 15, 2020) Target Date: TBD ➢ Discussion to Open DIF and Assess Park Allocations (Liesemeyer, June 17, 2020) Target Date: TBD ➢ Alarm Ordinance (Zimmerman, August 5, 2020) Target Date: January 2021 16. ADJOURN Decorum Policy Notes You may submit comments on any agenda item by emailing requests to publiccomments@cityofmenifee.us prior to the item being heard. The Council anticipates and encourages public participation at its Council meeting, both on agenda items and during the public comments period. While we encourage participation, we ask there be a mutual respect for the proceedings. Staff Reports Materials related to an item on this agenda, including those submitted to the City Council after distribution of the agenda packet, are available for public inspection by contacting Sarah Manwaring, City Clerk, at (951) 672-6777 during normal business hours. Compliance with the Americans with Disabilities Act If you need special assistance to participate in this meeting, you should contact Sarah Manwaring, City Clerk at (951) 672-6777. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. City Council Chambers Menifee City Council 29844 Haun Road Menifee Planning Commission Menifee, CA 92586 Special Joint Workshop Meeting Minutes Wednesday, September 30, 2020 6:00 PM Special Meeting Bill Zimmerman, Mayor Randy Madrid, Chair Greg August, District 1 Benjamin Diederich, Vice Chair Matthew Liesemeyer, District 2 Robert P. Karwin, Commissioner Lesa Sobek, District 3 Earl Phillips, Commissioner Dean Deines, District 4 Chris Thomas, Commissioner SPECIAL JOINT WORKSHOP MINUTES SPECIAL MEETING (6:00 P.M.) 1. CALL TO ORDER Mayor Zimmerman called the meeting to order at 6:02 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 Absent Dean Deines District 4 Present Randy Madrid Planning Commission Chair Present Benjamin Diederich Commissioner Present Robert Karwin Commissioner Present Earl Phillips Commissioner Present Chis Thomas Commissioner Present 3. PLEDGE OF ALLEGIANCE Planning Commission Chair Randy Madrid led the flag salute. 4. WORKSHOP 4.1. Housing Element Update Community Development Director Cheryl Kitzerow provided an overview and background of the item. Ms. Kitzerow noted Doug Darnell, Senior Planner was the City’s project manager, and introduced City's Consultants from Kimley-Horn Dave Barquist, Project Manager and Candyce Burnett, Deputy Project Manager. Ms. Burnett provided a presentation and reported on the City of Menifee demographics; what the Housing Element is; why the Housing Element is updated; certification; state legislation; Regional Housing Needs Assessment (RHNA); RHNA Process; RHNA Allocation; Change in 6th Cycle RHNA Allocations; 5th Cycle Housing Production; Public Outreach and Community Input; What is Included in the Update Process; Community Workshops and 9.1 Packet Pg. 5 Minutes Acceptance: Minutes of Sep 30, 2020 6:00 PM (APPROVAL OF MINUTES) Menifee Mayor and City Council and Planning Commission Special Joint Workshop Meeting Minutes Wednesday, September 30, 2020 Page 2 of 2 Outreach Opportunities; Community Survey Tool; Community Profile; Housing Needs, Constraints, and Resources; Housing Sites Analysis; Housing Plan; Additional Updates - Land Use Element Update, Safety Element Update, Environmental Justice Policy Update; California Environmental Quality Act; Next Steps; and Tentative Project Schedule. Ms. Kitzerow clarified the first community workshop will be held Thursday October 22, 2020, and the housing survey was available on City's website as an opportunity to obtain input from public. The City Council and Planning Commission asked questions of staff regarding the Regional Housing Needs Allocation (RHNA) process, how to meet the numbers required in the low income category, site analysis and need for re- zoning, RHNA appeal process and the effects to the City. Councilmember Sobek stated she was not in favor of the state mandates and spoke in favor of the City researching if a RHNA appeal would benefit the City. Ms. Kitzerow stated the City had previously sent letters of concern and opposition regarding the original RHNA methodology that were presented by SCAG and that the final draft numbers were lower than before. City Attorney Jeffrey Melching stated the decision to appeal or not, should be a closed session item with the City Council. Councilmember Sobek stated her direction to staff would be to provide information to the public of the state mandates on the City as the update process moves forward. 5. ADJOURN Mayor Zimmerman adjourned the meeting at 7:22 P.M. ____________________ Sarah A. Manwaring, MMC City Clerk 9.1 Packet Pg. 6 Minutes Acceptance: Minutes of Sep 30, 2020 6:00 PM (APPROVAL OF MINUTES) WHEREAS, Dr. Judy White has been serving in public education for 42 years; and WHERAS, Dr. White has served as Riverside County Superintendent of Schools for almost four years; and WHEREAS, Dr. White was the first woman to be elected student body president at Cajon High School in San Bernardino; and WHEREAS, Dr. White was the first African American to serve on the cabinet of the San Bernardino City Unified School District; and WHEREAS, Dr. White was the first African American to serve as Moreno Valley Unified School District Superintendent; and WHEREAS, Dr. White inherited Riverside County Office of Education when she was appointed in 2017; and WHEREAS, Dr. White made the commitment early on in her career to serving people at her highest capacity by 2000; and WHEREAS, Dr. White wanted to retire by 65 years old so that she could focus her time and energy on her grandkids and on serving her community in other ways; and WHEREAS, Dr. White will continue to serve as a trustee of the College Board and will stay active in the community, ministry, and education; and WHEREAS, Dr. White plans to create a non-profit organization named MOSAIC, which stands for multicultural, optimistic, support, aspiring, inspiring and called; and NOW, THEREFORE BE IT RESOLVED, the City of Menifee City Council does hereby proclaim many thanks and appreciation to Dr. Judy White for her 42 years of dedicated service to the public including her 4 years committed to Riverside County, and wish her all the best in her retirement. Dated this 21st day of October 2020. _________________________ Bill Zimmerman, Mayor ____________________________ ____________________________ Matthew Liesemeyer, Mayor Pro Tem Greg August, Councilmember ____________________________ ____________________________ Dean Deines, Councilmember Lesa Sobek, Councilmember 10.2 Packet Pg. 7 Communication: Dr. Judy White Retirement Proclamation (CONSENT CALENDAR) CITY OF MENIFEE SUBJECT: Warrant Register MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Ann-Marie Etienne, Financial Services Manager REVIEWED BY: Rochelle Clayton, Deputy City Manager APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION Ratify and approve the Voucher List dated 9/25/2020, the Payroll Register/Other EFT’s dated 9/23/2020, 10/1/2020,10/2/2020 and the Void Check Listing PE 9/30/2020 which have a total budgetary impact of $4,827,960.66. 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 List dated 9/25/2020, the Payroll Register/Other EFT’s dated 9/23/2020, 10/1/2020,10/2/2020 and the Void Check Listing PE 9/30/2020 have a total budgetary impact of $4,827,960.66. FISCAL IMPACT As indicated above, Voucher List dated 9/25/2020, the Payroll Register/Other EFT’s dated 9/23/2020, 10/1/2020,10/2/2020 and the Void Check Listing PE 9/30/2020 have a total budgetary impact of $4,827,960.66, which is included in the 2020-2021 Budget. ATTACHMENTS 1. Voucher Listing 9-25-2020 2. A-P Void Check Listing Sept'20 3. Payroll Register 10-21-2020 10.3 Packet Pg. 8 09/23/2020 Voucher List City of Menifee 1 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46590 9/14/2020 01935 BLITZER'S PREMIUM FROZEN, YOGURT CK REQ 8/24 02705 MENIFEE CARES SMALL BUSINESS GRANT (BLIT 5,000.00 Total : 5,000.00 46591 9/14/2020 00039 POSTMASTER CK REQ 8/24 02710 POSTAGE FOR MENIFEE MATTERS AND DD NEWSL 12,564.26 Total : 12,564.26 46592 9/14/2020 01946 PUEBLO VIEJO MEXICAN FOOD CK REQ 8/25 02704 MENIFEE CARES SMALL BUSINESS GRANT (PUEB 5,000.00 Total : 5,000.00 46593 9/14/2020 01947 SUN CITY BARBER SHOP CK REQ 8/24 02706 MENIFEE CARES SMALL BUSINESS GRANT (SUN 5,000.00 Total : 5,000.00 46594 9/14/2020 01936 THE CAMP TRANSFORMATION, CENTER CK REQ 8/24 02703 MENIFEE CARES SMALL BUSINESS GRANT (THE 5,000.00 Total : 5,000.00 46595 9/15/2020 01922 PORAC LEGAL DEFENSE FUND 8/28/20 02699 PEACE OFFICERS REACH ASSOC OF CALIFORNIA 4,725.00 Total : 4,725.00 46596 9/25/2020 01799 AIRFORCE 1 PLUMBING HEATING &, AIR, INC 100280 02658 KC SENIOR CENTER HVAC REPAIR 2,200.00 225.00CITY HALL FACILITY MAINTENANCE100345 Total : 2,425.00 46597 9/25/2020 01252 AMAZON CAPITAL SERVICES, INC.14PR-3YGG-YFYG COMM SVCS SUPPLIES 33.85 35.88COMM SVCS SUPPLIES14WC-F9P4-LJNP 188.62FACILITIES SMALL TOOLS & FIELD EQUIPMENT16QX-KXK3-JH7T 29.86COMM SVCS SUPPLIES174N-YTFC-J3QY 56.54FLEET MATERIALS & SUPPLIES17JK-V6PM-VKN6 223.53FLEET MATERIALS & SUPPLIES1CHV-PNFR-CKJR 215.40SUPPLIES FOR PARK MAINTENANCE1HGF-FTHX-FPFD 44.85PD SUPPLIES1LX6-YQ19-6KW3 217.50PARK MAINTENANCE1MDQ-9VCG-KTJC 10.86PD SUPPLIES1PVH-LGDV-JRT1 121.90IT SUPPLIES FOR PD1R79-XNWK-XDWY 65.06IT SMALL TOOLS/FIELD EQUIP1WFW-96QN-QV6H 180.76COMM SVCS OFFICE SUPPLIES1WJX-HMQ6-1FKX 44.56COMM SVCS OFFICE SUPPLIES1WTV-6QN9-K9FD 1Page: 10.3.a Packet Pg. 9 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 2 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46597 9/25/2020 (Continued)01252 AMAZON CAPITAL SERVICES, INC. 38.18COMM SVCS SUPPLIES1XD4-FTHH-M9FN 438.10AMR PARK SUPPLIES1XJL-6DD1-61HH 38.88P/W EQUIPMENT MAINTENANCE1YFW-DPFF-D4JP Total : 1,984.33 46598 9/25/2020 00123 AMBER MANAGEMENT, LLC OCT'20 OCT'20 CITY HALL MONTHLY RENT 37,227.42 28,555.04OCT'20 PD HEADQUARTERS MONTHLY RENTOCT'20 Total : 65,782.46 46599 9/25/2020 00507 ANIMAL FRIENDS OF THE VALLEY JULY 2020 02601 JUL'20 INTERIM ANIMAL SHELTER OPERATIONS 27,670.17 02602 18,750.00JUL'20 ANIMAL FIELD SERVICESJULY 2020-1 Total : 46,420.17 46600 9/25/2020 01849 BILLINGPARADISE 24X7, INC.GMS8920 JUL'20 CLOSED CAPTIONING SERVICE FOR MEE 1,085.00 Total : 1,085.00 46601 9/25/2020 01272 BOOT BARN INC.INV00059237 FIELD STAFF BOOTS 151.70 Total : 151.70 46602 9/25/2020 00776 CORELOGIC SOLUTIONS, LLC 82040759 AUG'20 CORELOGIC LICENSING 349.50 Total : 349.50 46603 9/25/2020 00881 D.R. BECHTER CONSULTING INC.14-002-318 02590 AUG'20 ON-CALL RECOVERABLE CONSTRUCTION 8,855.00 Total : 8,855.00 46604 9/25/2020 00080 DOCU-TRUST 040607 DOC STORAGE & RETRIEVAL SVCS 699.42 Total : 699.42 46605 9/25/2020 01299 DONALD HOBBS CK REQ 9/18 OCT'20 LEASE FOR POLICE SUBSTATION 2,025.00 Total : 2,025.00 46606 9/25/2020 00841 DUDEK 202005513 JUL'20 ON-CALL RECOVERABLE CONSTRUCTION 15,785.00 02619 Total : 15,785.00 46607 9/25/2020 00407 ESGIL, LLC 0071336-IN 02643 JUL'20 BLDG/SFTY PLAN CHECK SVCS 4,211.91 2Page: 10.3.a Packet Pg. 10 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 3 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 4,211.91 46607 9/25/2020 00407 00407 ESGIL, LLC 46608 9/25/2020 00733 FULLER TRUCK ACCESSORIES W 67468 COMM SVCS VEHICLE EQUIPMENT 1,142.01 Total : 1,142.01 46609 9/25/2020 01854 INCLUDEDUCATION CK REQ 9/15 COMM SVCS INSTRUCTOR PAYMENT 54.60 Total : 54.60 46610 9/25/2020 01200 INLAND ELECTRIC INC 5754 PD FACILITY MAINT 196.00 Total : 196.00 46611 9/25/2020 00848 KOBATA ASSOCIATES, INC.01 02610 JUL'20 ON-CALL LANDSCAPE DESIGN & INSPEC 8,000.00 Total : 8,000.00 46612 9/25/2020 01567 LOZANO SMITH LLP 2115680 JUL'20 CITY LEGAL SVCS 653.00 Total : 653.00 46613 9/25/2020 01031 MENIFEE VALLEY TAEKWONDO ACADE CK REQ 9/15 COMM SVCS INSTRUCTOR PAYMENT 178.50 Total : 178.50 46614 9/25/2020 01514 MULLIN360 LLC 6 02155 AUG'20 NET GROWTH DEMAND ANALYSIS 15,000.00 Total : 15,000.00 46615 9/25/2020 01761 P.L. PERRIN & ASSOCIATES 20-10 02270 PD POLYGRAPH SVCS 250.00 02270 500.00PD POLYGRAPH SVCS20-11 02270 750.00PD POLYGRAPH SVCS20-12 02270 250.00PD POLYGRAPH SVCS20-13 02270 250.00PD POLYGRAPH SVCS20-14 Total : 2,000.00 46616 9/25/2020 01660 PACKHAM AND TOOMEY, INC 2020409 FIRE STATION #68 FACILITIES MAINTENANCE 927.73 Total : 927.73 46617 9/25/2020 01160 PAYPRO ADMINISTRATORS PPC-144192 JUL'20 COBRA INSURANCE 60.00 Total : 60.00 46618 9/25/2020 01457 RICK ENGINEERING 0076423 CIP 16-13 ON CALL ENGINEERING SVCS 199.95 3Page: 10.3.a Packet Pg. 11 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 4 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 199.95 46618 9/25/2020 01457 01457 RICK ENGINEERING 46619 9/25/2020 00260 RIVERSIDE COUNTY FIRE DEPT 233654 FY 19/20 4TH QTR FIRE PROTECTION SVCS 3,100,080.42 Total : 3,100,080.42 46620 9/25/2020 00236 RIVERSIDE COUNTY, SHERIFF DEPT-CONTRACTSH0000037895 CONTRACT LAW ENF SVCS BP #13 -MILEAGE 276.21 Total : 276.21 46621 9/25/2020 00596 SATCOM DIRECT COMMUNICATIONS 7393841 JUL'20 EMERGENCY SATELLITE PHONE SVC 54.25 54.25JUL'20 EMERGENCY SATELLITE PHONE SVC7393842 109.15JUL'20 EMERGENCY SATELLITE PHONE SVC7393843 109.15JUL'20 EMERGENCY SATELLITE PHONE SVC7393844 54.25JUL'20 EMERGENCY SATELLITE PHONE SVC7393845 Total : 381.05 46622 9/25/2020 01318 SEARLE CREATIVE GROUP LLC 20285-PDEXP MARKETING FOR MENIFEE PD DEPT 241.54 1,050.00MARKETING FOR MENIFEE PD DEPT20287-PD 02662 675.00FY 2020/21 ON-CALL MARKETING SERVICES20325-ED Total : 1,966.54 46623 9/25/2020 00484 SELECT STAFFING 8405717396 TEMP EMP SVCS PE 8/02/20 3,822.77 690.06TEMP EMP SVCS PE 8/02/208405734909 6,019.57TEMP EMP SVCS PE 8/09/208405734910 5,713.88TEMP EMP SVCS PE 8/16/208405755231 5,407.40TEMP EMP SVCS PE 8/23/208405774504 5,700.44TEMP EMP SVCS PE 8/30/208405793099 Total : 27,354.12 46624 9/25/2020 01019 SIGNARAMA MURRIETA INV-19930 VINYL GRAPHIC LETTERING FOR CITY HALL 837.20 Total : 837.20 46625 9/25/2020 01449 THE NATELSON DALE GROUP, INC 03554 02669 CEDS PLAN: ANNUAL PERFORMANCE REPORT 6,050.00 Total : 6,050.00 46626 9/25/2020 01768 V&V MANUFACTURING, INC 2585 MENIFEE POLICE BADGES 337.05 86.20MENIFEE PD GRAPHIC REMOVAL2586 Total : 423.25 4Page: 10.3.a Packet Pg. 12 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 5 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46627 9/25/2020 01250 VULCAN MATERIALS COMPANY 72660781 P/W MATERIALS & SUPPLIES 123.37 83.26P/W MATERIALS & SUPPLIES72666983 86.40P/W MATERIALS & SUPPLIES72668480 84.05P/W MATERIALS & SUPPLIES72671499 Total : 377.08 46628 9/25/2020 01198 WHITE HOUSE SANITATION 0000746847 SEP'20 LAZY CREEK PORTABLE RESTROOM SVCS 183.42 146.61SEP'20 LYLE MARSH PORTABLE RESTROOM SVCS0000746848 Total : 330.03 46629 9/25/2020 01524 WRIGHT SEPTIC 29588 FIRESTATION #5 FACILITY MAINT 335.00 Total : 335.00 46630 9/25/2020 00555 ADAME LANDSCAPING, INC.84169 02580 JUL'20 ROW MAINT SVCS 28,585.60 02577 35,988.75AUG'20 PARK MAINT SVCS84558 Total : 64,574.35 46631 9/25/2020 00191 AFLAC 377396 SEPT'20 INSURANCE PREMIUMS 12,338.18 Total : 12,338.18 46632 9/25/2020 01045 AHERN RENTALS, INC 22328669-001 P/W EQUIPMENT RENTAL 274.04 274.04P/W EQUIPMENT RENTAL22338125-001 439.89P/W EQUIPMENT RENTAL22360512-001 274.04P/W EQUIPMENT RENTAL22360580-001 269.15P/W EQUIPMENT RENTAL22373250-001 274.04P/W EQUIPMENT RENTAL22392891-001 108.20P/W EQUIPMENT RENTAL22405748-001 Total : 1,913.40 46633 9/25/2020 01795 AIR & HOSE SOURCE, INC 392767 P/W VEHICLE MAINTENANCE (VEH#224 & 233) 38.79 177.79P/W VEHICLE MAINTENANCE (VEH#209)393598 Total : 216.58 46634 9/25/2020 00612 ALL AMERICAN ASPHALT 32249RET RETENTION RELEASE 53,251.84 Total : 53,251.84 46635 9/25/2020 01596 ALL STAR GLASS, INC.ITA084699 P/W ADMIN VEHICLE MAINTENANCE 584.04 99.00PD VEHICLE MAINTENANCEITA084717 5Page: 10.3.a Packet Pg. 13 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 6 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 683.04 46635 9/25/2020 01596 01596 ALL STAR GLASS, INC. 46636 9/25/2020 00744 ALLIED TRAFFIC & EQUIP. RENTAL 80767 P/W SIGN MAINT & REPLACEMENT 97.88 145.73P/W SIGN MAINT & REPLACEMENT80872 76.13P/W SIGN MAINT & REPLACEMENT80890 951.56P/W SIGN MAINT & REPLACEMENT80962 Total : 1,271.30 46637 9/25/2020 00365 AMERICAN PLANNING ASSOC.123672-2075 APA MEMBERSHIP RENEWAL 888.00 578.00APA MEMBERSHIP RENEWAL156829-2075 539.00APA MEMBERSHIP RENEWAL214657-2075 485.00APA MEMBERSHIP RENEWAL341746-2075 Total : 2,490.00 46638 9/25/2020 00058 AMERICAN REPROGRAPHICS CO. LLC 10710863 PRINTING SVCS 273.68 Total : 273.68 46639 9/25/2020 01769 APA CALIFORNIA, APA CALIFORNIA, CHAPTER 0000560 JOB POSTING FOR PLANNER 50.00 Total : 50.00 46640 9/25/2020 01206 BACKFLOW TESTING BY PATRICK 1588 AMR BACKFLOW TESTING 45.00 45.00CSA 33 BACKFLOW TESTING1589 145.00CSA 145 BACKFLOW TESTING1593 45.00CSA 145 BACKFLOW TESTING1595 45.00CSA 145 BACKFLOW TESTING1596 45.00CFD BACKFLOW TESTING1611 45.00COMM SVCS BACKFLOW TESTING1613 45.00AMR BACKFLOW TESTING1614 45.00HIDDEN HILLS BACKFLOW TESTING1621 Total : 505.00 46641 9/25/2020 01474 BATTERY SYSTEMS INC 5790172 P/W EQUIPMENT MAINTENANCE 527.47 Total : 527.47 46642 9/25/2020 01943 BRADLEY FAMILY DENTAL GROUP CK REQ 09/16 02740 CARES SMALL BUSINESS GRANT (BRADLEY FAMI 5,000.00 Total : 5,000.00 46643 9/25/2020 01098 CAL TRUE VALUE JUL-AUG'20 COMM SVCS AND P/W MATERIALS & SUPPLIES 1,560.20 6Page: 10.3.a Packet Pg. 14 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 7 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 1,560.20 46643 9/25/2020 01098 01098 CAL TRUE VALUE 46644 9/25/2020 01612 CAZCOM, INC 39120 RADIOS FOR MENIFEE PD 1,991.76 1,991.76MENIFEE PD RADIOS39168 883.71MENIFEE PD RADIO SUPPLIES39169 Total : 4,867.23 46645 9/25/2020 00104 CITY CLERKS ASSOC OF CALIF.6302 MEMBERSHIP DUES 35.00 Total : 35.00 46646 9/25/2020 01699 CONCENTRA HEALTH SERVICES, INC 14240092 PRE-EMPLOYMENT TESTING SVCS 280.00 Total : 280.00 46647 9/25/2020 01444 DASH PLATFORM 68432 02701 JUL'20 DASH SOFTWARE SERVICE FEE 416.66 02701 416.66AUG'20 DASH SOFTWARE SERVICE FEE68725 02701 416.66SEP'20 DASH SOFTWARE SERVICE FEE69023 Total : 1,249.98 46648 9/25/2020 00344 DBX, INC.R684-02 02306 CIP 17-05 CITYWIDE ADA/PEDESTRIAN SAFETY 176,341.85 02441 88,635.00CIP 20-06 & 20-07 TRAFFIC SIGNAL MENIFEER687-02 Total : 264,976.85 46649 9/25/2020 01684 DENT KNOWLEDGE 2725 PD VEHICLE MAINTENANCE (VEH#20-15) 300.00 Total : 300.00 46650 9/25/2020 01621 DRAMA KIDS TEMECULA VALLEY CK REQ 9/16 COMM SVCS INSTRUCTOR PAYMENT 139.30 Total : 139.30 46651 9/25/2020 00161 EASTERN MUNICIPAL WATER DIST.101923-02 8/26 AUG'20 CSA 145 WATER SVCS 1,724.53 1,205.80AUG'20 LLMD ZONE 3 WATER SVCS152572-03 9/3 907.45AUG'20 LLMD ZONE 3 WATER SVCS173168-03 9/3 815.88AUG'20 LLMD ZONE 3 WATER SVCS181069-03 9/3 2,224.27AUG'20 CSA 145 WATER SVCS181979-03 9/3 959.64AUG'20 WATER SVCS FIRE STATION #51827-05 9/4 1,063.43AUG'20 CSA 145 WATER SVCS204615-02 9/4 2,463.53AUG'20 CSA 145 WATER SVCS204616-02 9/3 1,132.26AUG'20 LLMD ZONE 3 WATER SVCS210877-03 9/3 1,992.77AUG'20 LLMD ZONE 3 WATER SVCS217316-03 9/4 7Page: 10.3.a Packet Pg. 15 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 8 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46651 9/25/2020 (Continued)00161 EASTERN MUNICIPAL WATER DIST. 2,422.72AUG'20 LLMD ZONE 3 WATER SVCS218618-03 9/4 1,005.97AUG'20 LLMD ZONE 3 WATER SVCS218620-03 9/9 2,266.20AUG'20 LLMD ZONE 69 WATER SVCS225995-03 9/4 1,437.53AUG'20 LLMD ZONE 69 WATER SVCS225996-03 9/4 1,442.85AUG'20 CSA 145 WATER SVCS226312-03 9/4 1,014.07AUG'20 CSA 145 ROW WATER SVCS229625-03 9/4 1,853.98AUG'20 LLMD ZONE 77 WATER SVCS230227-03 9/4 985.89AUG'20 LLMD ZONE 81 WATER SVCS233542-03 9/4 1,447.11AUG'20 AMR ROW WATER SVCS236610-02 9/4 1,660.74AUG'20 AMR SPORTS PARK IRRIGATION237538-02 8/25 691.14AUG'20 AMR ROW WATER SVC238693-02 9/4 1,445.45AUG'20 SPIRIT PARK WATER SVCS239155-02 8/25 2,856.80AUG'20 LLMD ZONE 3 WATER SVCS239165-02 9/4 3,814.01AUG'20 AMR ROW WATER SVC240232-02 9/4 1,885.32AUG'20 LLMD ZONE 77 WATER SVCS240567-02 9/4 742.23AUG'20 FIRE STATION #7 WATER SVCS241469-01 9/3 393.23AUG'20 CITY HALL WATER SVCS246366-02 9/3 813.49AUG'20 MAYFIELD PARK IRRIGATION SVCS247265-02 8/25 967.09AUG'20 AMR SILVERSTAR IRRIGATION WATER S248650-02 8/25 1,464.65AUG'20 CENTRAL PARK IRRIGATION SVCS250347-02 8/25 1,243.57AUG'20 CENTENNIAL PARK IRRIGATION WATER252059-02 8/25 1,933.49AUG'20 CENTENNIAL PARK IRRIGATION WATER252060-02 8/25 2,098.57AUG'20 CSA 145 WATER SVCS35123-04 9/3 462.87AUG'20 LLMD ZONE 3 WATER SVCS71998-03 9/8 5,532.64AUG'20 CSA 145 WATER SVCS95843-03 9/4 419.27AUG'20 LLMD ZONE 3 WATER SVCS96356-03 9/4 Total : 56,790.44 46652 9/25/2020 00161 EASTERN MUNICIPAL WATER DIST.100351-02 9/8 AUG'20 FIRE STATION #76 WATER SVCS 249.54 115.56AUG'20 FIRESTATION #76 WATER SVCS101330-02 9/8 146.68AUG'20 LLMD ZONE 3 WATER SVCS149228-03 9/3 180.00AUG'20 LLMD ZONE 3 WATER SVCS181980-03 9/3 307.28AUG'20 LLMD ZONE 38 WATER SVCS197480-04 9/3 235.29AUG'20 LLMD ZONE 38 WATER SVCS197481-04 9/3 340.22AUG'20 LLMD ZONE 38 WATER SVCS197482-04 9/3 316.36AUG'20 LLMD ZONE 38 WATER SVCS197483-04 9/3 8Page: 10.3.a Packet Pg. 16 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 9 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46652 9/25/2020 (Continued)00161 EASTERN MUNICIPAL WATER DIST. 270.68AUG'20 LLMD ZONE 38 WATER SVCS197486-04 9/3 223.72AUG'20 LLMD ZONE 37 WATER SVCS209502-03 9/3 173.43AUG'20 LLMD ZONE 3 WATER SVCS217318-03 9/4 168.11AUG'20 POLICE HEADQUARTERS WATER SVC231916-02 9/3 116.26AUG'20 POLICE HEADQUARTERS WATER SVC231917-03 9/3 236.13AUG'20 NEWPORT/HAUN STREET MEDIAN WATER234911-01 9/3 112.29AUG'20 AMR SPORTS PARK WATER SVCS236607-02 9/4 316.85AUG'20 AMR WATER SVCS240844-03 8/25 165.39AUG'20 FIRE STATION #7 WATER SVCS241468-01 9/3 225.17AUG'20 LLMD ZONE 167 WATER SVCS246084-02 9/8 286.13AUG'20 CENTENNIAL PARK IRRIGATION WATER252061-02 8/25 113.77AUG'20 POLICE HEADQUARTERS WATER SVC254376-01 9/4 124.90AUG'20 WATER SVC NORTH ANNEX BLDG32539-21 9/3 159.41AUG'20 CSA 145 WATER SVCS35053-03 9/3 189.75AUG'20 CHERRY HILLS BLVD STREET MEDIAN W4065-02 9/3 154.18AUG'20 LLMD ZONE 3 WATER SVCS71416-03 9/3 282.09AUG'20 WATER SVC SENIOR CENTER81456-03 9/3 278.88AUG'20 LLMD ZONE 3 WATER SVCS83877-03 9/3 268.59AUG'20 LLMD ZONE 3 WATER SVCS85623-04 9/3 184.41AUG'20 CSA 33 WATER SVCS8792-03 9/8 104.22AUG'20 RANCHO RAMONA PARK WATER SVCS8913-02 9/8 274.34AUG'20 LLMD ZONE 3 WATER SVCS92817-02 9/3 176.34AUG'20 LLMD ZONE 3 WATER SVCS94084-03 9/4 140.91AUG'20 LLMD ZONE 3 WATER SVCS94440-03 9/3 139.36AUG'20 LLMD ZONE 3 WATER SVCS95841-03 9/3 109.64AUG'20 LLMD ZONE 3 WATER SVCS95842-03 9/3 194.98AUG'20 P/W MOC WATER SVCS9926-02 9/3 201.96AUG'20 LLMD ZONE 3 WATER SVCS99479-03 9/4 Total : 7,282.82 46653 9/25/2020 00161 EASTERN MUNICIPAL WATER DIST.101279-03 9/3 AUG'20 LLMD ZONE 3 WATER SVCS 51.90 29.87AUG'20 FIRE STATION #76 WATER SVCS106931-02 9/8 22.62AUG'20 LLMD ZONE 3 WATER SVCS152855-03 9/4 62.88AUG'20 LLMD ZONE 3 WATER SVCS155944-03 9/4 12.69AUG'20 CSA 145 WATER SVCS204614-02 9/3 45.20AUG'20 LLMD ZONE 47 WATER SVCS214104-03 9/3 9Page: 10.3.a Packet Pg. 17 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 10 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46653 9/25/2020 (Continued)00161 EASTERN MUNICIPAL WATER DIST. 66.96AUG'20 LLMD ZONE 3 WATER SVCS217419-03 9/3 44.39AUG'20 SPIRIT PARK RESTROOM WATER SVCS225656-03 9/3 45.81AUG'20 BRADLEY RD ROW WATER SVCS234982-01 9/3 95.82AUG'20 SUN CITY ROW IRRIGATION240219-01 9/3 38.57AUG'20 FIRE STATION #7 WATER SVCS240865-01 9/3 48.27AUG'20 CSA 145 WATER SVC246112-02 9/4 49.37AUG'20 AMR SILVERSTAR PARK WATER SVCS246407-02 9/3 99.02AUG'20 HIDDEN HILLS PARK RESTROOM WATER247007-02 9/4 16.53AUG'20 HIDDEN HILLS PARK IRRIGATION SVCS247009-02 9/8 76.26AUG'20 CENTRAL PARK WATER SVCS250203-02 9/4 59.58AUG'20 CENTENNIAL PARK WATER SVCS250719-02 9/4 65.98AUG'20 CFD 2015-2 ANNEXATION 34 ZONE 34250899-02 9/4 84.75AUG'20 LLMD ZONE 3 WATER SVCS71417-03 9/3 56.83AUG'20 FIRE STATION #68 WATER SVCS73422-02 9/4 21.17AUG'20 FIRE STATION #68 WATER SVCS73433-02 9/4 13.57AUG'20 WATER SVCS ANNEX BLDG81822-03 9/3 99.90JUL'20 CSA 33 WATER SVCS8914-03 9/9 96.57AUG'20 CSA 33 WATER SVCS8914-03 9/9 Total : 1,304.51 46654 9/25/2020 00804 EMPLOYMENT DEVELOPMENT DEPT.L0654667488 2ND QTR UNEMPLOYMENT CHARGES 18,358.46 Total : 18,358.46 46655 9/25/2020 01042 FISHER WIRELESS SERVICES, INC 069200 OCT'20 CITY RADIO CHARGES 235.77 Total : 235.77 46656 9/25/2020 01142 FRONTIER CALIFORNIA INC.209-188-1265 8/24 SEPT'20 CITY HALL FIOS AND PHONE LINES 1,897.98 290.98AUG'20 WEST ANNEX FIOS SVCS213-166-6081 8/16 300.98AUG'20 SPIRIT PARK FIOS310-010-9929 8/19 422.76SEPT'20 CITY HALL IP CIRCUIT (MAIN)310-150-0013 9/6 130.98SEPT'20 FIRESTATION #7 FIOS SVCS951-679-0060 9/7 426.22SEPT'20 PW YARD FIOS SVCS951-679-2323 9/6 180.03SEPT'20 ALARM CITY HALL951-679-3592 9/04 306.85AUG'20 MENIFEE PD VOLUNTEER PHONE SVCS951-679-7031 8/1 306.85SEPT'20 MENIFEE PD VOLUNTEER PHONE SVCS951-679-7031 9/1 110.91SEPT'20 LAZY CREEK ALARM SVCS951-679-8153 9/04 10Page: 10.3.a Packet Pg. 18 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 11 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46656 9/25/2020 (Continued)01142 FRONTIER CALIFORNIA INC. 66.70SEPT'20 SENIOR CENTER FIRE ALARM951-679-8460 8/28 Total : 4,441.24 46657 9/25/2020 00278 GALLS, LLC 015991096 02527 PD REDMAN TRAINING SUIT 1,801.68 02528 1,060.89PD MATERIALS & SUPPLIES015999260 02527 64.65PD REDMAN TRAINIG SUIT016000528 02527 02527 196.76PD REDMAN TRAINIG SUIT016000529 182.70FIELD STAFF BOOTS016363084 182.70FIELD STAFF BOOTS016372037 02528 803.70PD MATERIALS & SUPPLIES016397667 02528 401.85PD MATERIALS AND SUPPLIES016475439 Total : 4,694.93 46658 9/25/2020 00139 GHA TECHNOLOGIES INC 101066370 02691 LAPTOP REPLACEMENTS FOR FINANCE AND ENGI 518.74 02690 345.83LAPTOP PURCHASES FOR CS DEPARTMENT101066383 02714 4,769.70MONITOR REPLACEMENTS101067975 02715 2,037.39IBASE CONTROLLER FOR TMC PROJECT101068025 02716 4,022.80IT APPLE LAPTOP101068143 Total : 11,694.46 46659 9/25/2020 01310 GOLDSTAR ASPHALT PRODUCTS 16346 P/W MATERIALS & SUPPLIES 27.48 90.24P/W MATERIALS & SUPPLIES16356 Total : 117.72 46660 9/25/2020 00908 GOSCH AUTO GROUP 2061874 CODE ENF VEHICLE MAINTENANCE (VEH#111) 17.73 25.75CODE ENF VEHICLE MAINTENANCE (VEH#110)2061950 23.14BLDG/SFTY VEHICLE MAINTENANCE (VEH# 107)2062688 189.27FLEET MATERIALS & SUPPLIES2062709 -250.89PD VEHICLE MAINTENANCE(VEH#305)5011194CM Total : 5.00 46661 9/25/2020 00558 HDL COREN & CONE SIN003154 2019-20 CAFR STAT PACKAGE 645.00 Total : 645.00 46662 9/25/2020 00650 HDL SOFTWARE, LLC SIN003238 JUL'20 HDL ONLINE CC PROCESSING SVCS 172.99 11Page: 10.3.a Packet Pg. 19 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 12 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 172.99 46662 9/25/2020 00650 00650 HDL SOFTWARE, LLC 46663 9/25/2020 01952 HEAVEN SCENT FLOWERS CK REQ 09/16 02741 CARES SMALL BUSINESS GRANT (HEAVEN SCENT 5,000.00 Total : 5,000.00 46664 9/25/2020 01734 HOME DEPOT CREDIT SERVICES 7141 8/13 SUPPLIES 463.76 Total : 463.76 46665 9/25/2020 00548 IMPACT PROMOTIONAL PRODUCTS 27405 CITY CLERK EMPLOYEE SHIRTS 366.23 Total : 366.23 46666 9/25/2020 01043 IMPERIAL SPRINKLER SUPPLY 4300417-00 CSA 145 IRRIGATION SUPPLIES 36.57 260.87CFD PARK IRRIGATION SUPPLIES4304201-00 173.92HIDDEN HILLS PARK IRRIGATION SUPPLIES4306103-00 35.00CFD IRRIGATION SUPPLIES4324380-00 295.32KC CENTER IRRIGATION SUPPLIES4324385-00 21.98CFD IRRIGATION SUPPLIES4324671-00 Total : 823.66 46667 9/25/2020 00306 INLAND EMPIRE MAGAZINE INV47644 02696 INLAND EMPIRE MAGAZINE ADS~ 4,800.00 Total : 4,800.00 46668 9/25/2020 01885 LYNN PEAVEY COMPANY 371015 02491 MENIFEE PD FORENSIC & CRIME SCENE SUPPLI 577.46 02491 40.78MENIFEE PD FORENSIC & CRIME SCENE SUPPLI371075 02491 198.25MENIFEE PD FORENSIC & CRIME SCENE SUPPLI371124 Total : 816.49 46669 9/25/2020 01940 MELISSA RACHEL LAND CK REQ 9/16 02744 CARES SMALL BUSINESS GRANT(ELEVATION TRA 2,000.00 Total : 2,000.00 46670 9/25/2020 01963 MERNA'S CAFE & GRILL INC CK REQ 09/16 02742 CARES SMALL BUSINESS GRANT (MERNA'S CAFE 5,000.00 Total : 5,000.00 46671 9/25/2020 00474 HEATHERLEE CHAN CK REQ 08/05 REFUND FOR CANCELLED ACTIVITY 120.00 Total : 120.00 46672 9/25/2020 01473 MISS APRIL'S DANCE CK REQ 9/15 COMM SVCS INSTRUCTOR PAYMENT 144.00 12Page: 10.3.a Packet Pg. 20 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 13 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total : 144.00 46672 9/25/2020 01473 01473 MISS APRIL'S DANCE 46673 9/25/2020 00690 MMASC 2396 ANNUAL CONFERENCE REGISTRATION 75.00 Total : 75.00 46674 9/25/2020 01558 OCCUPATION HEALTH CENTERS, OF CALIFORNIA68580793 PRE-EMPLOYMENT TESTING SVCS 1,931.50 1,567.50PRE-EMPLOYMENT TESTING SVCS68645835 115.00PRE-EMPLOYMENT TESTING SVCS68707347 115.00PRE-EMPLOYMENT TESTING SVCS68836245 Total : 3,729.00 46675 9/25/2020 01130 O'REILLY AUTO PARTS 4746-101497 P/W VEHICLE MAINTENANCE (VEH#236) 5.70 225.08P/W VEHICLE MAINTENANCE (VEH#206)4746-103373 71.68P/W VEHICLE MAINTENANCE (VEH#218)4746-127720 86.89FLEET MATERIALS & SUPPLIES4746-129487 86.35P/W VEHICLE MAINTENANCE (VEH#209)4746-131944 27.17P/W MATERIALS & SUPPLIES4746-132737 9.78BLDG & SFTY VEHICLE MAINTENANCE (VEH#2094746-134867 30.43P/W VEHICLE MAINTENANCE (VEH#209)4746-134868 47.25P/W VEHICLE MAINTENANCE (VEH#206)4746-135853 161.25PD VEHICLE MAINTENANCE (VEH#305)4746-137520 24.38PD VEHICLE MAINTENANCE (VEH#305)4746-137524 Total : 775.96 46676 9/25/2020 01096 PAPER RECYCLING & SHREDDING, SPECIALISTS INC.0011406094 LEGAL ADVERTISING SVCS 206.80 95.00CITY HALL DOC SHREDDING SVCS464049 95.00CITY HALL DOC SHREDDING SVCS466123 95.00CITY HALL DOC SHREDDING SVCS466124 95.00CITY HALL DOC SHREDDING SVCS468277 Total : 586.80 46677 9/25/2020 01942 PHYSICAL THERAPY OF MENIFEE CK REQ 9/16 02743 CARES SMALL BUSINESS GRANT (PHYSICAL THE 5,000.00 Total : 5,000.00 46678 9/25/2020 01065 PRUDENTIAL OVERALL SUPPLY 23027013 P/W UNIFORM LAUNDRY SVCS 95.67 40.47P/W LAUNDRY SVCS23027014 95.67P/W UNIFORM LAUNDRY SVCS23030410 40.47P/W LAUNDRY SVCS23030411 13Page: 10.3.a Packet Pg. 21 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 14 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46678 9/25/2020 (Continued)01065 PRUDENTIAL OVERALL SUPPLY 45.87COMM SVCS UNIFORM LAUNDRY SVCS23033821 95.67P/W UNIFORM LAUNDRY SVCS23033831 40.47P/W LAUNDRY SVCS23033832 45.87COMM SVCS UNIFORM LAUNDRY SVCS23036695 45.87COMM SVCS UNIFORM LAUNDRY SVCS23040196 45.87COMM SVCS UNIFORM LAUNDRY SVCS23043312 Total : 591.90 46679 9/25/2020 00969 RIVERSIDE TRANSIT AGENCY 82730 AUG'20 RTA BUS PASSES 14.50 Total : 14.50 46680 9/25/2020 01858 SAFETY-KLEEN SYSTEMS, INC 83849534 FLEET MATERIALS & SUPPLIES 125.24 Total : 125.24 46681 9/25/2020 00046 SOUTHERN CALIFORNIA EDISON 2-31-923-1015 9/3 AUG'20 MENIFEE RD TC-1 SIGNAL SVC 64.23 319.74JUL'20 NEWPORT RD SGNL & STREETLIGHTING2-32-648-0936 8/11 314.98AUG'20 NEWPORT RD TC-1 SGNL SVC2-32-648-0936 9/10 43.96AUG'20 COMM SHACK DAILY RD ELECTRIC SVC2-33-575-9569 9/11 80.42AUG'20 ANTELOPE RD TC-1 SGNL SVC2-33-675-0278 9/12 685.99AUG'20 LLMD ZONE 81 SIGNAL SVCS2-35-194-1992 9/2 2,187.31AUG'20 CITY SIGNAL SVC2-35-194-3196 9/2 134.69AUG'20 BRIGGS RD SGNL SVCS2-35-870-8709 9/10 4,306.50AUG'20 SENIOR CENTER ELECTRICAL SVCS2-36-719-0022 9/9 290.43AUG'20 CITY SIGNALS SVCS2-36-751-2365 9/15 69.01JUL'20 MCCALL TC-1 SIGNAL SVCS2-37-489-6173 8/7 70.79AUG'20 MCCALL TC-1 SIGNAL SVCS2-37-489-6173 9/5 534.75AUG'20 LLMD IRRIGATION SVCS2-37-492-0809 9/10 4,687.10AUG'20 FIRE STATIONS ELECTRICAL SVC2-39-846-6326 9/12 632.29AUG'20 P/W MOC ELECTRICAL SVCS2-40-098-0702 9/3 55.72JUL'20 2015-2 ANNEXATION #12 STREET LIGH2-40-738-2100 8/7 56.51AUG'20 2015-2 ANNEXATION #12 STREET LIGH2-40-738-2100 9/5 113.56AUG'20 CSA 145 IRRIGATION SVCS2-40-839-8204 9/3 82.94AUG'20 LLMD ZONE 167 SIGNAL SVCS2-40-993-9402 9/4 44.51AUG'20 LLMD ZONE 167 SIGNAL2-40-994-7645 9/10 78.70JUL'20 LLMD ZONE 167 SIGNAL SVCS2-40-994-7744 9/9 88.90AUG'20 LLMD ZONE 167 SIGNAL SVCS2-40-994-7744 9/9 14Page: 10.3.a Packet Pg. 22 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 15 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46681 9/25/2020 (Continued)00046 SOUTHERN CALIFORNIA EDISON 39.85AUG'20 LLMD ZONE 167 SAFETY LIGHT SVCS2-40-994-7868 9/4 69.37AUG'20 AMR STREET LIGHT SVCS2-41-130-6095 9/2 57.10AUG'20 AMR SILVERSTAR IRRIGATION SVCS2-41-316-9459 9/9 5,117.61JUL'20 CITY HALL ELECTRIC SVCS2-41-512-4585 8/26 65.51AUG'20 CFD 2017-1 TOWN CENTER TRAFFIC SI2-41-608-8631 9/11 81.97AUG'20 CFD 2017-1 TOWN CENTER TRAFFIC SI2-41-608-8664 9/11 114.50AUG'20 CFD 2012-1 AMR STREETLIGHT SVCS2-41-777-6713 9/2 1,636.27AUG'20 POLICE HEADQUARTERS ELECTRICAL SV2-41-909-0907 9/12 27.85AUG'20 AMR SPORTS PARK ELECTRIC SVCS2-42-069-6999 9/12 29.40JUL'20 NEWPORT BRIDGE LIGHT SVCS2-42-456-1900 9/9 33.85AUG'20 NEWPORT BRIDGE LIGHT SVCS2-42-456-1900 9/9 119.75AUG'20 HIDDEN HILLS PARK ELECTRIC SVCS2-42-483-8597 9/9 82.09AUG'20 PARK CITY TC-1 SIGNAL SVCS2-42-556-4762 9/09 27,618.60JUN'20 ELECTRIC SVCS FOR VARIOUS LOCATIO2-42-783-6465 7/09 Total : 50,036.75 46682 9/25/2020 00046 SOUTHERN CALIFORNIA EDISON 2-31-766-8671 9/9 AUG'20 CSA 33 STREET LIGHT SVCS 0.21 18.40AUG'20 CSA TLMA STREET LIGHT SVCS2-31-829-0749 9/2 11.07AUG'20 LLMD ZONE 3 IRRIGATION2-38-230-0713 9/3 25.41AUG'20 CFD 2015-2 ANNEX 12 SIGNAL SVCS2-40-738-3157 9/9 22.73JUL'20 CFD 2015-2 ANNEX 12 SIGNAL SVCS2-40-738-3157 9/9 20.48AUG'20 LLMD ZONE 167 SAFETY LIGHTS SVCS2-40-993-9071 9/11 12.52AUG'20 LLMD ZONE 167 IRRIGATION SVCS2-40-993-9311 9/11 11.83AUG'20 CFD 2014-1 TOWN CENTER IRRIGATION2-41-461-2358 9/3 12.19AUG'20 CFD 2017-1 TOWN CNTR IRRIGATION S2-41-608-8672 9/11 9.16AUG'20 NEWPORT BRIDGE IRRIGATION SVCS2-42-456-1397 9/9 20.98AUG'20 PARK CITY LS3 SIGNAL SVCS2-42-556-4754 9/09 Total : 164.98 46683 9/25/2020 01932 SOUTHERN CALIFORNIA NEWS GROUP 0011394928 LEGAL ADVERTISING SVCS 294.80 211.20LEGAL ADVERTISING SVCS0011394955 759.00LEGAL ADVERTISING SVCS0011395141 407.00LEGAL ADVERTISING SVCS0011396290 555.50LEGAL ADVERTISING SVCS0011396843 517.00LEGAL ADVERTISING SVCS0011396999 422.40LEGAL ADVERTISING SVCS0011402481 15Page: 10.3.a Packet Pg. 23 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 16 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46683 9/25/2020 (Continued)01932 SOUTHERN CALIFORNIA NEWS GROUP 470.80LEGAL ADVERTISING SVCS0011402491 1,932.00LEGAL ADVERTISING SVCS0011403067 599.50LEGAL ADVERTISING SVCS0011403268 1,948.80LEGAL ADVERTISING SVCS0011403788 329.93NEWSPAPER SUBSCRIPTION FOR CM OFFICE901305980-2021 Total : 8,447.93 46684 9/25/2020 00045 STAPLES 6041 8/14 OFFICE SUPPLIES 1,936.52 Total : 1,936.52 46685 9/25/2020 00861 STAPLES CONTRACT & COMMERICAL 8059517923 AUG'20 OFFICE SUPPLIES 3,049.05 Total : 3,049.05 46686 9/25/2020 01010 STC TRAFFIC, INC.4188-A 02633 JUL'20 NON-RECOVERABLE TRAFFIC ENG RVW S 6,085.50 Total : 6,085.50 46687 9/25/2020 01034 TEMECULA WINNELSON CO.211375 01 AMR FACILITY MAINT 436.83 Total : 436.83 46688 9/25/2020 00098 THE GAS COMPANY 091 934 9672 7 8/21 AUG'20 PD GAS SVCS 17.68 75.09AUG'20 FIRE STATION #76 GAS SVCS114 347 5472 4 8/31 Total : 92.77 46689 9/25/2020 00854 THE LLOYD PEST CONTROL CO, INC 7157502 AUG'20 CITY HALL PEST CONTROL SVCS 75.00 Total : 75.00 46690 9/25/2020 01085 THE SHERWIN-WILLIAMS CO 4532-9 GRAFFITI ABATEMENT SUPPLIES 112.50 Total : 112.50 46691 9/25/2020 00714 TPX COMMUNICATIONS 132737764-0 LOCAL & LONG DISTANCE SVCS AUG'20 899.88 Total : 899.88 46692 9/25/2020 01064 TRI STATE MATERIALS INC 92058 P/W MATERIALS & SUPPLIES 842.81 75.10LAZY CREEK PARK MAINTENANCE92292 Total : 917.91 46693 9/25/2020 00054 TYLER TECHNOLOGIES, INC, EDEN SYSTEMS DIVISION025-307261 MY CITY APP SUBSCRIPTION 1,102.50 16Page: 10.3.a Packet Pg. 24 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) 09/23/2020 Voucher List City of Menifee 17 6:53:15PM Page:vchlist Bank code :uboc Voucher Date Vendor Invoice PO #Description/Account Amount 46693 9/25/2020 (Continued)00054 TYLER TECHNOLOGIES, INC, EDEN SYSTEMS DIVISION 02709 2,047.76POLICE CASHIER CASH DRAWER/PRINTER045-311532 Total : 3,150.26 46694 9/25/2020 00703 UEBER HAUN I, LLC #99 OCT'20 LAND LEASE AGREEMENT 5,002.90 Total : 5,002.90 46695 9/25/2020 00189 VERIZON WIRELESS 9859805863 CITY MOBILE DEVICE CHARGES JUL'20 7,831.99 Total : 7,831.99 46696 9/25/2020 00976 VIRTUAL PROJECT MANAGER LLC 12-2442 VIRTUAL PROJECT MANAGER 500.00 Total : 500.00 46697 9/25/2020 00787 WAGEWORKS, INC.INV254005 JUL'20 FSA MONTHLY PREMIUM 547.00 Total : 547.00 46698 9/25/2020 01574 WALSH, PAT CK REQ 9/10 PER DIEM FOR POST EXECUTIVE CONFERENCE 154.00 Total : 154.00 46699 9/25/2020 00298 WEX BANK 67430886 AUG'20 CITY VEHICLE FUEL & MAINT CHARGES 22,364.34 Total : 22,364.34 Bank total : 4,018,371.83 110 Vouchers for bank code :uboc 4,018,371.83Total vouchers :Vouchers in this report 110 17Page: 10.3.a Packet Pg. 25 Attachment: Voucher Listing 9-25-2020 (2693 : Warrant Register) Status V V V V 1 check in this report Total Checks:586.80 09/25/2020 466124 08/06/2020 95.00 586.80 586.80 09/25/2020 468277 09/04/2020 95.00 09/25/2020 466123 08/06/2020 95.00 08/25/2020 206.80 09/25/2020 464049 07/09/2020 95.00 Invoice Inv. Date Amount Paid Check Total 46676 09/25/2020 01096 SPECIALISTS INC. PAPER RECYCLING & SHREDDINGV09/25/2020 0011406094 Check #Date Vendor Clear/Void Date A/P Void Check Listing 10.3.b Packet Pg. 26 Attachment: A-P Void Check Listing Sept'20 (2693 : Warrant Register) Date Paid by:Payee Description Amount 9/23/2020 ACH City Payroll Payroll Period Jun 2020 30.00 10/2/2020 ACH City Payroll Payroll Period 9/12/2020 - 9/25/2020 641,277.18 10/2/2020 ACH ICMA Payroll Period 9/12/2020 - 9/25/2020 29,956.37 TOTAL PAYROLL:671,263.55$ Date Paid by:Payee Description Amount 10/1/2020 ACH CALPERS - Retirement Payroll Period 8/15/2020 - 8/28/2020 79,826.05 10/1/2020 ACH CALPERS - Retirement Payroll Period 8/15/2020 - 8/28/2020 59,086.03 TOTAL OTHER EFT'S:138,912.08$ TOTAL PAYMENTS:810,175.63$ Payroll Register, Taxes and Other EFT's/Wires City of Menifee October 21, 2020 10.3.c Packet Pg. 27 Attachment: Payroll Register 10-21-2020 (2693 : Warrant Register) CITY OF MENIFEE SUBJECT: Treasurer's Report, September 2020 MEETING DATE: October 21, 2020 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 September 2020. DISCUSSION Attached is the Treasurer’s report for Cash and Investments for the month of September 2020. FISCAL IMPACT None. ATTACHMENTS 1. September 2020 Treasurer's Report 10.4 Packet Pg. 28 10.4.a Packet Pg. 29 Attachment: September 2020 Treasurer's Report (2695 : Treasurer's Report, September 2020) CITY OF MENIFEE SUBJECT: Joint Powers Agreement and Bylaws for California Intergovernmental Risk Authority MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Rochelle Clayton, Deputy City Manager REVIEWED BY: Rochelle Clayton, Deputy City Manager APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION Adopt Joint Powers Agreement and Bylaws for the California Intergovernmental Risk Authority (CIRA), which permits the merger or joining of the Public Agency Risk Sharing Authority of California (PARSAC) and the Redwood Empire Municipal Insurance Fund (REMIF). DISCUSSION BACKGROUND Rather than purchase commercial insurance through a commercial insurance carrier, the City of Menifee participates in an intergovernmental arrangement through which a group of cities and towns (referred to as the members) contribute to a shared fund that pays for liability and workers’ compensation claims and provides risk management services. That fund is often commonly referred to as a pool. Pools are empowered to exist through the sections of the California Government Code known as Joint Powers Authority (JPA), which allow two or more like entities to pool funds to pay for claims. Our pool functions as an extension of the City of Menifee and is governed by a board of directors comprised of members in the pool. Public entity pools are fundamentally different from conventional insurance. The primary purpose of any public entity pool is to manage and reduce underlying risks to the benefit of public entity members and the public at large. Conventional insurers exist primarily to finance losses, while public pools are collaborating partners that help public entities create, foster, and manage safe environments in order to minimize personal, physical, and property damages and losses. 10.5 Packet Pg. 30 City of Menifee Staff Report CIRA JPA Merger with PARSAC October 21, 2020 Page 2 of 3 ANALYSIS The Redwood Empire Municipal Insurance Fund (REMIF) is a public entity pool representing 15 small to medium sized cities/towns. It was formed in 1976 with a mission to provide workers’ compensation coverage in response to increasing and unaffordable commercial rates. Coverage was expanded in the mid-1980s to include liability coverage and other services. Other lines of coverage have been added since that time, which are outlined further below. The Public Agency Risk Sharing Authority of California (PARSAC) is a public entity pool representing 34 small to medium sized cities/towns and one fire district. It was formed in 1986 with a mission to provide liability coverage in response to the insurance crisis that eliminated commercial coverage for cities. Coverage was expanded in 1990 to include workers’ compensation coverage and other services. Other lines of coverage have been added since that time, which are outlined further below. PARSAC and REMIF provide a pooled liability program, pooled workers’ compensation program, and coverage for group purchased property, Board of Directors public officials’ errors and omissions, auto physical damage, special events, fidelity bonds, cyber liability and other ancillary benefits. REMIF has a pooled medical/health program. Through PARSAC’s fiscally conservative approach, their liability and workers’ compensation programs are funded in excess of the 90% confidence level. Both pools focus on managing and maintaining a financially stable risk sharing pool for members, and the board of directors have a conservative funding and investment philosophy. They share a similar philosophy to embrace diverse opinions, have discussions that are constructive and collaborative, encourage participation from the members, balance member interests with those of the pool and work together towards a greater good. Both pools also share a similar culture in that the pool is member owned, member governed, member driven and exists to serve its members. The organizations are also similar in that they serve small to medium sized cities/towns, and share a similar footprint in Northern California, while PARSAC has presence throughout the State. A comparison matrix of the lines of coverage and services offered by both pools are attached to this staff report. Given the similarities between the two agencies, REMIF and PARSAC explored a strategic partnership, which ultimately led to a proposed merger between the two organizations. Rather than one pool merging into the other, the Board of Directors for the pools directed the creation of a new pool (called the California Intergovernmental Risk Sharing Authority or CIRA). There will be great benefits in sharing resources, sharing expenses and drawing on strengths. Benefits also include succession planning, more robust, stable programs, shared training resources, long term program sustainability, and eliminating redundancies. While a merger could have realized savings to the members of both pools, the intent of a merger between 10.5 Packet Pg. 31 City of Menifee Staff Report CIRA JPA Merger with PARSAC October 21, 2020 Page 3 of 3 PARSAC and REMIF is to have long term stability, sustainability and adding depth and breadth to the agencies, with the singular goal of better serving our members. After over a year of in-depth analysis of such a merger, the Board of Directors for both pools directed the merger of the organizations, effective 07/01/21, creating a new pool, CIRA. To proceed, the individual members must seek adoption of the CIRA agreements, attached hereto. Council is asked to adopt the CIRA Joint Powers Agreement and Bylaws, and further direct staff to work with the CIRA on steps necessary to complete the merger. FISCAL IMPACT The merger will consolidate the operations and expenses of both pools. CIRA will work towards eliminating redundant expenses which will lower long term operating costs. Consolidating operations will also achieve greater economies of scale, improve service deliver, and CIRA will be in better position to leverage its larger size for better services, rates and coverage with service providers and excess insurers. A larger organization will also result in more predictable funding and reserving forecasts (with more available data), which reduces the likelihood of future assessments. The merged organization will be more fiscally viable and provide greater long-term stability and sustainability. ATTACHMENTS 1. CIRA JPA Agreement - Approved by PARSAC-REMIF 2. CIRA Bylaws - Approved by PARSAC-REMIF 3. CIRA FAQ 10.5 Packet Pg. 32 1 65365.00002\33005619.4 AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT OF THE CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY (formerly Public Agency Risk Sharing Authority of California) This Amended and Restated Joint Exercise of Powers Agreement of the California Intergovernmental Risk Authority (“CIRA” or “Authority”) (“Agreement”), formerly known as the Public Agency Risk Sharing Authority of California (“PARSAC”), is entered into by and among the public entities, hereafter referred to as “Members”, each of which is organized and existing under the laws of the State of California and is a signatory to this Agreement and listed in Appendix “A”, attached hereto and made a part hereof. This Agreement supersedes the Public Agency Risk Sharing Authority of California [PARSAC] Joint Powers Agreement dated May 25, 2017 as of, and is effective on, July 1, 2021 (“Effective Date”). RECITALS 1. The Authority was originally created as the California Municipal Insurance Authority effective May 21, 1986 pursuant to that certain Joint Powers Agreement Creating the California Municipal Insurance Authority (“Original JPA Agreement”). The Original JPA Agreement was revised and restated effective July 1, 1989 and then again effective November 19, 1993 when the original name was changed to the Public Agency Risk Sharing Authority of California. Subsequent restatements were approved effective May 31, 1996, December 13, 2002, December 12, 2003, May 20, 2005, May 31, 2007, and May 26, 2011. The most recent restatement is the PARSAC Joint Powers Agreement which was approved effective May 25, 2017 (“PARSAC Agreement”). 2. Labor Code Section 3700 authorizes public entities, including members of a pooling arrangement under a joint powers authority, to fund their own workers’ compensation claims. 3. Government Code Sections 989 and 990 authorize a local public entity to insure itself and its employees against tort or inverse condemnation liability. 4. Government Code Section 990.4 authorize a local public entity to fund insurance and self-insurance in any desired combination. 5. Government Code Section 990.6 provides that the cost of insurance is an appropriate public expenditure. 6. Government Code Section 990.8 authorizes two or more local public entities to enter into an agreement to jointly fund such expenditures under the authority of the Joint Exercise of Powers Act (Gov. Code Section 6500 et seq.). 7. Government Code Section 6500 et seq. authorizes two or more public entities to jointly exercise, under an agreement, any power which is common to each of them. 8. Each Member that is a party to this Agreement desires to join with the other Members to fund programs of insurance for workers’ compensation, liability, property and other coverages to be determined and for other purposes set forth in this Agreement. 10.5.a Packet Pg. 33 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 2 65365.00002\33005619.4 9. The governing body of each Member has determined that it is in the Member’s own best interest, and in the public interest, to execute this Agreement and participate as a Member of the Authority. In consideration of the recitals, mutual benefits, covenants, and agreements set forth in this Agreement, the Members agree as follows: ARTICLE I. CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY AS SUCCESSOR TO AND EXPANSION OF PARSAC A. Authority Created. The Authority was originally formed on May 21, 1986 as the California Municipal Insurance Authority by operation of the Original JPA Agreement and subsequently renamed as the Public Agency Risk Sharing Authority of California effective November 19, 1993. The Authority was, and is, formed pursuant to the provisions of Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (“Code”), which authorizes two or more public agencies, by a joint powers agreement entered into respectively by them and authorized by their legislative or governing bodies, to exercise jointly any power or powers common to the member agencies. 1. Name Change. As of the Effective Date, the Public Agency Risk Sharing Authority of California shall be known as the California Intergovernmental Risk Authority, hereinafter referred to as “CIRA” or the “Authority.” 2. Separate Entity. Pursuant to Code Sections 6506 and 6507, from its inception, the Authority has, is, and shall be a public entity separate and independent from the Members which is governed exclusively by the Authority’s Board of Directors (“Board”). B. Membership in the Authority as of the Effective Date. As of the Effective Date, the membership of the Authority shall consist of the members of PARSAC and the members of the Redwood Empire Municipal Insurance Fund (“REMIF”), with respect to only those that have approved this Agreement as of the Effective Date, as listed in Appendix “A”. C. Future Membership. Membership in the Authority is open to public entities throughout the State of California, if such public entities meet the requirements specified in the Bylaws and are approved by the Board. ARTICLE II. PURPOSE The purpose of the Authority is to exercise the powers of the Members to jointly accomplish the following: A. Develop comprehensive Programs with the objective to reduce the cost of risk against which the Members are authorized or required to protect against by insurance, self-insurance, or pooling. Such Programs may include, but are not limited to, coverages for tort liability, workers’ 10.5.a Packet Pg. 34 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 3 65365.00002\33005619.4 compensation, employee health benefits, loss to real or personal property, or liability arising out of the ownership, maintenance, or use of real or personal property. B. The design of the Programs may evolve with the needs of the Members and in accordance with contemporary economic and financial conditions. Programs may therefore operate on an insured, pooled, self-funded, or other appropriate basis whereby the Members share some portion, or all, of the costs of Program losses. B. Jointly secure administrative and other services including, but not limited to, general administration, underwriting, risk management, loss prevention, claims adjusting, data processing, brokerage, accounting, legal and other services related to any authorized purpose. ARTICLE III. PARTIES TO THE AGREEMENT AND RESPONSIBILITIES OF MEMBERS A. Each Member represents and warrants that it intends to, and does hereby, contract with all other Members listed in Appendix “A”, and any new members admitted to the Authority. Each Member also represents and warrants that the withdrawal or expulsion of any Member shall not relieve any Member of its rights, obligations, liabilities or duties under this Agreement or the individual Programs in which the Member participates. B. Each Member agrees to be bound by and to comply with all the terms and conditions of the Governing Documents and any Resolution or other action adopted by the Board as they now exist or may hereinafter be adopted or amended. Each Member assumes the obligations and responsibilities set forth in the Governing Documents, as they may be amended. C. Each new Member agrees to participate for a minimum of five years, except that members of PARSAC and REMIF as of June 30, 2021 must continue for a minimum of two years thereafter. Also, each new Member agrees to meet its obligations and responsibilities as set forth in the Governing Documents. ARTICLE IV. POWERS The Authority shall have the powers common to its Members. As provided by Government Code Section 6509, the Authority’s power is subject to the restrictions upon the manner of exercising the power of the Member specified in the Bylaws. Under this Agreement, the Authority is authorized, in its own name, to do all acts necessary and to exercise such common powers to fulfill the purposes of this Agreement, including but not limited to the following: A. Make and enter contracts; B. Employ agents and employees; C. Incur debts, liabilities or obligations; D. Receive, collect, invest, and disburse funds; 10.5.a Packet Pg. 35 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 4 65365.00002\33005619.4 E. Receive contributions and donations of property, funds, services and other forms of assistance; F. Acquire, construct, manage, maintain, hold, lease or dispose of real and personal property; and G. Sue and be sued in its own name and settle any claim against it. ARTICLE V. BOARD OF DIRECTORS A. The Authority shall be governed by the Board. Each Member shall appoint a representative to the Board and an alternate representative, each of whom shall meet the parameters set forth in the Bylaws. In the absence of a resolution of the Board providing otherwise, representatives and alternates will serve without compensation by the Authority. B. The Member’s representative and/or alternate representative shall be removed from the Board upon the occurrence of any one of the following events: (1) the expulsion or withdrawal of the Member from the Authority; (2) the death or resignation of the Member representative; (3) the Member gives notice that the Member representative is no longer employed by the Member; or (4) as otherwise provided in the Authority’s Bylaws. C. The Board shall exercise all powers and conduct all business of the Authority, either directly or by delegation of authority to committees or other bodies or individuals. ARTICLE VI. ADMINISTRATION OF PREEXISTING OBLIGATIONS A. All liabilities and obligations of the Authority existing prior to the Effective Date (“Preexisting Obligations”) will be administered under the terms and conditions of the PARSAC Agreement. For this purpose, the PARSAC Agreement in effect on June 30, 2021, which is attached hereto as Appendix B, is hereby made a part of this Agreement and incorporated herein by this reference. B. The Board shall appoint a committee made up of representatives of Authority members that were members prior to the Effective Date to make recommendations to the Board regarding the administration of the Preexisting Obligations. As to specific agenda items relating to such matters, only Directors representing Members who were members of the Authority prior to the Effective Date may vote, and as to such items, a quorum shall be determined solely by reference to the number of Members that were members of the Authority prior to the Effective Date. C. All assets of the Authority existing on June 30, 2021 shall be reserved by the Authority for the sole purpose of administering the Preexisting Obligations. Similarly, all assets of REMIF shall be used exclusively for the purpose of administrating the obligations of REMIF. 10.5.a Packet Pg. 36 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 5 65365.00002\33005619.4 ARTICLE VII. OFFICERS A. The Board shall elect a President, Vice-President, Treasurer, and Auditor/Controller. The President, Vice-President, and Auditor/Controller must be Directors. The General Manager shall serve as Secretary of the Board. The manner of election and term of office of elected officers and their authority and responsibilities shall be as set forth in the Authority’s Bylaws. If any of the elected officers ceases to be a Member’s representative, the resulting vacancy shall be filled as provided in the Authority’s Bylaws. The Board may elect such other officers as it considers necessary. B. As permitted by Government Code Section 6505.6, the Treasurer shall comply with the duties and responsibilities set for the subdivisions (a) through (d) of Government Code Section 6505.5, and shall cause an independent audit to be made by a certified public accountant, or public accountant, in compliance with Government Code Section 6505. The Treasurer will have no vote on the Board unless the Treasurer is also a Director. C. The Board shall appoint a General Manager who shall act as Secretary of the Board and as the Chief Administrative Officer of the Authority. Although an officer, the General Manager shall not have a vote on the Board or any committee of the Authority. ARTICLE VIII. MEETINGS AND RECORDS A. Not less than once a year, the Board and all standing committees shall hold regular meetings as set forth in the Bylaws of the Authority. Special meetings may be called as provided in the Bylaws. B. All meetings of the Board, and appointed committees, including without limitation, regular, adjourned regular, and special meetings, shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act (Section 54950 et. seq. of the Government Code). C. Minutes of regular, adjourned regular, and special meetings of the Authority shall be kept under the direction of the Secretary. After each meeting, the Secretary shall cause copies of the minutes to be forwarded to each Board member for review and approval at the next regular meeting. ARTICLE IX. BUDGET The Board shall adopt an annual budget prior to the beginning of each Fiscal Year. ARTICLE X. REGULAR AUDITS AND REVIEWS A. The Board shall cause an annual financial audit of the accounts and records to be prepared by a Certified Public Accountant in compliance with California Government Code Sections 6505 and 10.5.a Packet Pg. 37 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 6 65365.00002\33005619.4 6505.5 or 6505.6 with respect to all receipts, disbursements, other transactions and entries into the books of the Authority. The minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Government Code Section 26909 and shall conform to generally accepted accounting standards. A report of each such audit shall be filed as a public record with the Board, each of the Members, and the auditor/controller of the county in which the Authority’s administrative office is located. The report shall be filed within twelve months of the end of the fiscal year under examination. The Authority shall pay all costs for such financial audits. B. The Board shall cause an annual actuarial review to be prepared for each of the Programs of the Authority and a report of such actuarial review shall be made available for inspection by the Board and the Members. The Authority shall pay all costs for such actuarial review. C. The Board shall cause a claims audit of the administration of the claims for each of the Programs of the Authority at least biannually. A report of such claims review shall be made available for inspection by the Board and the Members. The Authority shall pay all costs for such claims reviews. ARTICLE XI. ADMISSION OF NEW MEMBERS A. Any public entity eligible for membership as stated in Article I may apply for membership in the Authority and participation in one or more of the Authority’s Programs at any time. To be considered, the applicant must submit any documentation or information requested by the Authority and pay any costs required to analyze their application and determine their initial contribution. B. The Authority shall review all applications by potential new members to determine if they meet the requirements provided for in the Bylaws and any relevant Board policies to determine whether and on what conditions to admit the applicant. C. Upon approval for membership by two-thirds vote of the Board, to become a Member the applicant must execute this Agreement and pay any contributions or premiums required to participate in the Program(s) for the initial Program Year in which the applicant will participate. ARTICLE XII. WITHDRAWAL A. After the initial commitment period described in Article III, any Member which enters a Program may withdraw from that Program by compliance with the requirements stated in the Bylaws for withdrawal from the Program. B. Withdrawal of a Member does not terminate its rights to coverage arising under any Program in which it participated for the years in which it participated. A Member that has withdrawn from a Program may later seek to renew participation in the Program subject to any terms and conditions set forth in the Bylaws. 10.5.a Packet Pg. 38 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 7 65365.00002\33005619.4 C. A Member that has withdrawn from all of the Authority’s Programs shall no longer have a right to a representative on the Board, but shall remain liable for assessments and other obligations arising from the Program Years in which it participated. D. As soon as administratively feasible after the Effective Date, the Members of the Authority shall agree on the method of apportioning the CalPERS retirement obligations of the Authority in the event of a default event as defined by Government Code Section 6508.2. Until such time, and in the event of a default event, the terms of the Public Agency Risk Sharing Authority of California (PARSAC) Agreement for Apportion of Retirement Obligations dated May 25, 2017, and attached hereto as Exhibit “C”, shall apply with respect to all Members of the Authority. ARTICLE XIII. EXPULSION The Board may expel any Member from the Authority and/or from a Program for material breaches of the Governing Documents consistent with the provisions of the Bylaws, subject to any warning or probationary provisions in the Governing Documents. Expulsion does not terminate the obligations of either the Authority or the Member incurred prior to the expulsion. ARTICLE XIV. TERMINATION AND DISTRIBUTION A. This Agreement shall continue in full force and effect until terminated. Termination of this Agreement shall also constitute the termination of all Programs. This Agreement may be terminated at any time by the vote of three-fourths of the Members; provided, however, that this Agreement and CIRA shall continue to exist for the purpose of disposing of all claims and paying its obligations for employees’ health and pension benefits, before the distribution of assets, and any other functions necessary to wind up the affairs of CIRA. B. Upon termination of this Agreement, all assets of each Program of CIRA shall be distributed among the Members which participated in such Programs, in accordance with the retrospective premium adjustment process in effect during the term of this Agreement. Such distributions shall be determined within six [6] months after the disposal of the last pending claim or other liability covered by all Programs of the Authority. The Board may in its sole discretion determine that earlier distributions are appropriate as to Programs for which there remains no claim or liability. C. Following the termination of this Agreement, any Member which was a participant in any Program of CIRA shall pay any additional amount of premium, determined by the Board or its designee in accordance with a retrospective premium adjustment, which may be necessary to enable final disposition of all claims arising from losses under that Program during the Member’s period of participation. D. The Board is vested with all powers of CIRA for the purpose of concluding and dissolving the business affairs of CIRA. The Board may designate legal counsel and any committee or person to carry out a plan of dissolution adopted by the Board. 10.5.a Packet Pg. 39 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 8 65365.00002\33005619.4 ARTICLE XV. LIABILITY OF MEMBERS, DIRECTORS, OFFICERS, AND COMMITTEE MEMBERS A. Pursuant to Government Code section 6508.1, except as to liabilities to a public retirement system, the debts, liabilities, and obligations of the Authority shall not constitute debts, liabilities, or obligations of any Member. However, each Member shall remain liable to the Authority for contributions assessed by the Authority to pay its debts, liabilities, or obligations. B. The debts, liabilities or obligations incurred by either PARSAC or REMIF prior to the Effective Date shall not constitute the debts, liabilities or obligations of the other. Notwithstanding the preceding, the Authority intends to be the successor to the CalPERS pension obligations of REMIF pursuant to California Government Code Section 20508. As such, the liability to CalPERS with respect to service credited under REMIF’s CalPERS contract, and the continuing liability to CalPERS of the Authority with respect to service credit accrued both prior to and after the Effective Date under the Authority’s CalPERS contract, shall be the contractual liability of the Authority. The Authority and REMIF shall separately enter into an agreement to provide for the allocation of liability, and the payment of related contributions, with respect to service credit accrued prior to the Effective Date. C. The representatives to the Board of Directors and to each of the Programs and any officer, employee, contractor, or agent of the Authority shall use ordinary care and reasonable diligence in the exercise of their power and in the performance of their duties under this Agreement. Directors, officers, committee members of the Authority shall be liable for any act or omission within the scope of their office or employment by the Authority only in the event that they act or fail to act because of actual fraud, corruption, or actual malice or willfully fail or refuse to conduct the defense of a claim or action in good faith or to reasonably cooperate in good faith in the defense conducted by the Authority. D. The Authority shall defend and indemnify its directors, officers, and employees to the same extent as any other public entity of the State of California is obliged to defend and indemnify its employees pursuant to Government Code Section 825, et seq., or other applicable provisions of law. Nothing herein shall limit the right of the Authority to purchase insurance to satisfy this obligation. E. The Authority shall indemnify, protect, defend, and hold harmless each and all of the Members, and their officials, agents, and employees, for and from any and all liability, claims, causes of action, damages, losses, judgments, costs, or expenses (including attorney fees) resulting from an injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement by the Authority, by one or more of the Members, or any of their officials, employees, agents, or independent contractors. 10.5.a Packet Pg. 40 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 9 65365.00002\33005619.4 ARTICLE XVI. NOTICES Notices to each Member under this Agreement shall be sufficient if mailed to its respective address on file with the Authority. Any Member may designate any other address in substitution of the foregoing address to which such notice will be given at any time by giving five days written notice to the Authority and all other Members. ARTICLE XVII. AMENDMENTS This Agreement may be amended at any time with the approval of two-thirds of the Directors on the Board acting with the approval of their governing bodies, except that any amendment that reduces the voting requirement for termination of the Authority must be approved by three-fourths of the Directors on the Board acting with the approval of their governing bodies. Authority of the Member representative (director) to give such approval may be delegated such in advance by the Member’s governing body, or in the absence of such prior delegation by action of a Member’s governing body to approve the proposed amendment. The amended Agreement shall take effect on the first day of the month following the Authority’s receipt of notice of approval by two-thirds of the Members, unless otherwise stated in the Amendment, and once effective shall apply to all Members regardless of whether a particular Member approved the amendment. Refusal to execute or comply with the amended Agreement shall be a basis for expulsion of the Member. A Member that does not approve of the amendment may withdraw from the Authority and all its Programs at the end of the fiscal year next following the effective date of the amendment, notwithstanding the five-year minimum commitment provided for in Article III, Section C. ARTICLE XVIII. SEVERABILITY Should any portion, term, condition, or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions shall not be affected thereby. ARTICLE XIX. COMPLETE AGREEMENT The foregoing constitutes the full and complete Agreement of the parties. There are no oral understandings or agreements not set forth in writing herein, except as to the Bylaws. 10.5.a Packet Pg. 41 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 10 65365.00002\33005619.4 ARTICLE XX. TERM OF AGREEMENT This Agreement shall become effective upon execution, and shall continue in effect until satisfaction of all obligations created hereunder following termination of the Authority created by this Agreement. ARTICLE XXI. COUNTERPARTS The Agreement may be executed in multiple counterparts, each of which shall be considered an original. ARTICLE XXII. ARBITRATION Any controversy arising out of this Agreement shall be submitted to binding arbitration, which shall be conducted in accordance with the provisions of the California Arbitration Act (California Code of Civil Procedure § 1280 et seq.). ARTICLE XXIII. FORCE MAJEURE No party will be deemed to be in default where failure or delay in performance of any of its obligations (other than payment obligations) under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, actions of legislative, judicial, executive, or regulatory government bodies or other cause, without fault and beyond the reasonable control of such party (“Force Majeure”). If any such events shall occur, the time for performance by such party of any of its obligations under this Agreement will be extended by the parties for the period of time that such events prevented such performance. Upon the occurrence of an event of Force Majeure, the affected party shall: (i) promptly notify the other parties of such Force Majeure event, (ii) provide reasonable details relating to such Force Majeure event and (iii) implement mitigation measures to the extent reasonable. ARTICLE XXIV. DEFINITIONS The following definitions shall apply to the provisions of this Agreement and the Bylaws of the Authority: A. “Agreement” shall mean this Agreement, as it may be amended from time to time, creating the California Intergovernmental Risk Authority. B. “Board” or “Board of Directors” shall mean the governing body of the Authority. C. “Bylaws” shall mean the Bylaws attached to this Agreement, as amended from time to time by the Board consistent with the amendment provisions in the Bylaws. 10.5.a Packet Pg. 42 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 11 65365.00002\33005619.4 D. “Claim(s)” shall mean demand(s) made against the Member arising out of occurrences which are covered or alleged to be covered by the Authority’s Memorandums of Coverage or policies of insurance. E. “Fiscal Year” shall mean the period of time commencing on July 1 of each year and ending on June 30 of the following year. F. “Governing Documents” shall mean this Agreement, the Bylaws of the Authority, each Program’s Memorandum of Coverage, the Master Program Document, , and any other document stipulated as a Governing Document in the Bylaws or by action of the Board. G. “Insurance” shall mean insurance or reinsurance purchased by the Authority to cover Claims against or losses of the Authority and/or its Members. H. “Jurisdiction” shall mean the territory in which the Authority may exercise its powers; i.e., the State of California. I. “Member” shall mean any public entity authorized to be a member of a Joint Powers Authority, which is a party to this Agreement and is participating in one or more Programs. J. “Memorandum of Coverage” shall mean a document issued by the Authority for each Program specifying the coverages and limits provided to the Members participating in the Program. K. “Participation” or “participating” shall refer to a Member that has elected to join and take part in a Program. L. “Pooling” shall mean group self-insurance as allowed by Government Code section 990.8, Labor Code section 3700, or any other applicable law. M. “Program” shall mean those coverage programs of risk sharing, insurance, self-insurance, pooling and risk management services created by the Authority to manage specific types of risks. N. “Program Year” shall mean the annual period in each Program to be segregated for determination of coverage premiums or assessments. O. “Risk Management” shall mean the process of identifying, evaluating, reducing, transferring, and eliminating risks. Risk Management includes, but is not limited to, various methods of funding claims payments, purchasing insurance, legal defense of claims, controlling losses, and determining self-insured retention levels and the amount of reserves for potential claims. 10.5.a Packet Pg. 43 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 12 65365.00002\33005619.4 IN WITNESS WHEREOF, the undersigned party hereto has executed this Agreement on the date indicated below. California Intergovernmental Risk Authority ["CIRA"] Date: _____________________ By: __________________________________________ Name/Title Attest: __________________________________________ Secretary, CIRA Member Entity: __________________________ Date: _____________________ By: __________________________________________ Name/Title Attest: __________________________________________ City/Town Clerk 10.5.a Packet Pg. 44 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 13 65365.00002\33005619.4 APPENDIX “A” CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY MEMBERS 1. City of Arcata 2. City of Amador City 3. City of Avalon 4. City of Belvedere 5. City of Blue Lake 6. City of California City 7. City of Calimesa 8. City of Calistoga 9. City of Citrus Heights 10. City of Clearlake 11. City of Cloverdale 12. City of Coalinga 13. City of Cotati 14. City of Eureka 15. City of Ferndale 16. City of Fort Bragg 17. City of Fortuna 18. City of Grass Valley 19. City of Healdsburg 20. City of Highland 21. City of Lakeport 22. City of Menifee 23. City of Nevada City 24. City of Placentia 25. City of Placerville 26. City of Plymouth 27. City of Point Arena 28. City of Rancho Cucamonga 29. Rancho Cucamonga Fire Protection District 30. City of Rancho Santa Margarita 31. City of Rohnert Park 32. City of San Juan Bautista 33. City of Sebastopol 34. City of Sierra Madre 35. City of Sonoma 36. City of South Lake Tahoe 37. City of St. Helena 38. City of Tehama 39. City of Trinidad 40. Town of Truckee 41. City of Twentynine Palms 42. City of Ukiah 43. City of Watsonville 44. City of Wheatland 45. City of Wildomar 46. City of Willits 47. Town of Windsor 48. Town of Yountville 49. City of Yucaipa 50. Town of Yucca Valley 10.5.a Packet Pg. 45 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 i APPENDIX “B” PARSAC Agreement PARSAC JOINT POWERS AGREEMENT Revised & Adopted May 25, 2017 Public Agency Risk Sharing Authority of California 10.5.a Packet Pg. 46 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 ii TABLE OF CONTENTS Page ARTICLE I DEFINITIONS ................................................................................................3 ARTICLE II PARTIES TO THE AGREEMENT ................................................................6 ARTICLE III PURPOSES .....................................................................................................6 ARTICLE IV CREATION OF THE PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA ...............................................7 ARTICLE V TERM OF AGREEMENT ..............................................................................7 ARTICLE VI POWERS OF PARSAC ..................................................................................7 ARTICLE VII RESPONSIBILITIES OF MEMBER ENTITIES ..........................................8 ARTICLE VIII BOARD OF DIRECTORS ...........................................................................10 ARTICLE IX OFFICERS ....................................................................................................13 ARTICLE X EXECUTIVE COMMITTEE .......................................................................13 ARTICLE XI ADMINISTRATION ....................................................................................13 ARTICLE XII BUDGET ......................................................................................................14 ARTICLE XIII ANNUAL AUDITS AND REVIEWS..........................................................14 ARTICLE XIV ESTABLISHMENT AND ADMINISTRATION OF FUNDS ...................................................................................................15 ARTICLE XV SUPPORT OF PARSAC'S GENERAL EXPENSES ...................................16 ARTICLE XVI DEPOSIT PREMIUMS ................................................................................17 ARTICLE XVII PARSAC MEMBERSHIP ............................................................................18 ARTICLE XVIII MEMORANDA OF COVERAGE ..............................................................18 ARTICLE XIX SIR MANDATORY RESERVES/PAYMENT ............................................19 10.5.a Packet Pg. 47 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 iii ARTICLE XX RETROSPECTIVE PREMIUM ADJUSTMENTS AND ASSESSMENTS ...........................................................................................20 ARTICLE XXI NEW MEMBERS .........................................................................................21 ARTICLE XXII WITHDRAWAL ...........................................................................................22 ARTICLE XXIII EXPULSION ................................................................................................25 ARTICLE XXIV EFFECT OF WITHDRAWAL OR EXPULSION ON MEMBER ENTITY'S RESPONSIBILITIES ...............................................26 ARTICLE XXV TERMINATION OF AGREEMENT AND DISTRIBUTION OF ASSETS .....................................................................27 ARTICLE XXVI NOTICES ......................................................................................................28 ARTICLE XXVII PROHIBITION AGAINST ASSIGNMENT ................................................28 ARTICLE XXVIII AMENDMENTS ..........................................................................................29 ARTICLE XXIX SEVERABILITY ..........................................................................................29 ARTICLE XXX AGREEMENT COMPLETE ........................................................................29 ARTICLE XXXI EXECUTION OF COUNTERPARTS .........................................................30 APPENDIX "A" MEMBER ENTITIES 10.5.a Packet Pg. 48 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 1 PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA [PARSAC] JOINT POWERS AGREEMENT THIS AGREEMENT is made in the State of California by and among those municipalities organized and existing under the laws of the State of California, hereinafter referred to as "Member Entity[ies]," which are parties’ signatory to this Agreement. All such Member Entities are listed in Appendix "A", which is attached hereto and made a part hereof. RECITALS A. California Government Code Section 6500 and following permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties. B. California Government Code Section 990.4 permits a local public entity to self- insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these; C. California Government Code Section 990.6 provides that the cost of insurance provided by a local public entity is a proper charge against that local public entity; D. California Government Code Section 990.8 permits two or more local entities to, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4 and provides that such pooling of self- insured claims or losses does not constitute the business of insurance under the California Insurance Code; 10.5.a Packet Pg. 49 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 2 E. California Labor Code Section 3700(c) permits all political subdivisions of the State of California, including each member of a pooling arrangement under a joint exercise of powers agreement to self-insure against workers’ compensation claims by securing a certificate of consent from the Department of Industrial Relations; F. Each of the Member Entities, which is a party to this Agreement, desires to join with the other Member Entities to fund programs of insurance for workers' compensation, liability, property and other coverages to be determined and for other purposes set forth in Article III of this Agreement; G. The governing body of each Member Entity has determined that it is in its own best interest and in the public interest that this Agreement be executed and that it participate as a member of the Public Agency Risk Sharing Authority of California [PARSAC] created by this Agreement; and H. As of the effective date of this Agreement, this Agreement shall replace and supersede the Joint Powers Agreement Creating the Public Agency Risk Sharing Authority of California, dated May 21, 1986, as amended on November 20, 1987, July 1, 1989, and November 19, 1993, May 31, 1996, December 13, 2002, December 12, 2003, May 20, 2005, May 31, 2007, December 2, 2010, May 26, 2011 and May 25, 2017. Now, therefore, in consideration of the above facts and the mutual benefits, promises and agreements set forth below, the Member Entities hereby agree as follows: 10.5.a Packet Pg. 50 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 3 AGREEMENT ARTICLE I DEFINITIONS The following terms shall have the following definitions: A. “Agreement” shall mean this Revised and Restated Joint Powers Agreement creating the Public Agency Risk Sharing Authority of California [PARSAC]. B. “Alternate” shall mean the person designated by the Member Entity to act as a director of PARSAC in the absence of the Director. The Alternate shall have the same responsibility, power and authority as the Director when acting in the Director's stead. C. “Board” or “Board of Directors” shall mean the governing body of PARSAC. D. “Bylaws” shall mean the Bylaws of PARSAC, revised as of May 27, 2010, and as they may be further amended or revised. E. “Claims” shall mean any demand[s] made against a Member Entity to recover for monetary damages within, or alleged to be within, the scope of coverage provided by any of PARSAC's Memoranda of Coverage [or any commercial insurance policy related to a PARSAC Program]. F. “PARSAC” shall mean the Public Agency Risk Sharing Authority of California created by this Agreement. G. “Covered Loss” shall mean any loss resulting from a claim or claims against a Member Entity which is in excess of its Self-Insured Retention and which is covered by any of PARSAC's Memoranda of Coverage [or insurance policy related to a PARSAC Program]. H. “Deposit Premium” shall mean the estimated amount determined for each Member Entity necessary to fund each layer of coverage for each Policy Year of each 10.5.a Packet Pg. 51 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 4 Program of PARSAC. I. “Executive Committee” shall mean that committee of the Board, constituted and exercising the authority set forth in this Agreement and in the Bylaws. J. “Fiscal Year” shall mean the period of time ending on June 30 of each year during which PARSAC is in existence. K. “Incurred Loss” shall mean the amount of monies paid and reserved by PARSAC to investigate, defend and satisfy a demand or demands made against a Member Entity. L. “Insurance” shall mean commercial insurance policies which PARSAC may purchase for its Member Entities, from time to time, in order to effect a transfer of risk. The term "Insurance" shall not mean any self-insurance, risk-sharing or pooling of losses or risks. M. “Liability Program Participant” shall refer only to members of PARSAC that have been approved and are in good standing to participate in the Liability Program. N. “Member Entity” shall mean any California public entity which is a party signatory to this Agreement including any other agency for which the City Council sits as the Governing board. O. “Memorandum of Coverage” shall mean the document or documents issued by PARSAC specifying the type and amount of coverages provided under any Program to the Member Entities by PARSAC. P. “Program Year” shall mean a period of time, usually 12 months, for which each Program is to determine Deposit Premiums, Retrospective Premiums, and Retrospective Premium Adjustments. 10.5.a Packet Pg. 52 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 5 Q. “Program” shall mean arrangements to cover specific types of claims which may include, but not be limited to, property, workers' compensation, and comprehensive liability claims. R. “Public Entity” shall mean a county, city, whether general law or chartered, city and county, town, district, political subdivision, joint powers authority, or any board, commission, or agency thereof providing a municipal service, excluding school districts. S. “Retrospective Premium” shall mean, the amount determined retrospectively as each Member Entity's share of losses, reserves, expenses and interest income as may be determined periodically for any Program. T. “Retrospective Premium Adjustment” shall mean the amount necessary to periodically adjust the Deposit Premium, or prior Retrospective Premiums if any, to the newly calculated Retrospective Premium amount. U. “Self-Insured Retention” or “SIR” shall mean the amount of loss from each occurrence which the Member Entity shall retain and pay directly and which shall not be shared by the Member Entities of PARSAC. V. “Workers’ Compensation Program Participant” shall refer only to members of PARSAC that have been approved and are in good standing to participate in the Workers’ Compensation Program. W. “Group Purchase Programs” shall mean coverage programs provided by insurance policies where there is no self-insurance, risk sharing or pooling. 10.5.a Packet Pg. 53 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 6 ARTICLE II PARTIES TO THE AGREEMENT Each Member Entity is a party to this Agreement and agrees that it intends to, and does contract with, all other parties who are signatories of this Agreement and with such other parties as may later be added. Each Member Entity also agrees that the expulsion or withdrawal of any Member Entity from this Agreement shall not affect this Agreement nor the remaining parties as to the other Member Entities then remaining. ARTICLE III PURPOSES This Agreement is entered into by the Member Entities in order to: A. Create the Public Agency Risk Sharing Authority of California to carry out the purposes listed below and to exercise the powers contained in this Agreement; B. Develop effective risk management programs to reduce the amount and frequency of their losses; C. Share some portion, or all, of the cost of their losses; D. Jointly purchase commercial insurance, associate with other risk-sharing pools, or self-insure against risks; E. Jointly purchase administrative and other services including, but not limited to, underwriting, risk management, loss prevention, claims adjusting, data processing, brokerage, accounting and legal services when related to any of the other purposes; F. Provide other joint powers risk sharing authorities with management services; and G. Do all things necessary to carry out the foregoing purposes, as well as all things necessary to implement the terms of this Agreement as permitted by law. 10.5.a Packet Pg. 54 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 7 ARTICLE IV CREATION OF THE PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA Pursuant to the California Government Code, the Member Entities hereby agree to continue in existence a public entity, separate and apart from the parties to this Agreement, to be known as the Public Agency Risk Sharing Authority of California ["PARSAC"]. The debts, liabilities or obligations of PARSAC shall not constitute debts, liabilities or obligations of any party to this Agreement. However, a Member Entity may separately contract for, or assume responsibility for, specific debts, liabilities or obligations of PARSAC. ARTICLE V TERM OF AGREEMENT This Agreement shall become effective as of the date hereof and shall continue in full force and effect until terminated in accordance with Article XXVI. ARTICLE VI POWERS OF PARSAC PARSAC shall have the powers common to its Member Entities in California and all additional powers permitted to a joint powers authority by California law, and the parties hereby authorize PARSAC to do all acts necessary to exercise such powers to fulfill the purposes of this Agreement including, but not limited to, the following: A. Make and enter into contracts; B. Incur debts, liabilities and obligations; C. Acquire, hold, lease or dispose of real and personal property, contributions and donations of property, funds, services and other forms of assistance; D. Sue and be sued in its own name and settle any claim against it; E. Employ agents and employees; 10.5.a Packet Pg. 55 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 8 F. Acquire, construct, manage, maintain or operate buildings, works or improvements; G. Receive, collect, and disburse monies; and invest money not required for immediate necessities; and H. Exercise all powers necessary and proper to carry out the terms and provisions of this Agreement. ARTICLE VII RESPONSIBILITIES OF MEMBER ENTITIES Each member entity shall: A. Sign this Agreement and its legally enacted amendments and participate in PARSAC's Liability Program and/or Workers’ Compensation Program; B. Sign a Membership Resolution for each Program; C. Pay Deposit Premiums, Retrospective Premium Adjustments, and any Special Assessments to PARSAC on or before the due date; D. Appoint, elect or remove representatives to serve as director and alternate on the Board, which representatives are expressly authorized to act on behalf of the Member Entity on all matters coming before the Board; E. Assure that its representative director or alternate attends at least one meeting of the Board annually; F. Assure that its representative director and alternate keep informed about PARSAC's activities and assist them in doing so; G. Approve Amendments to this Agreement as set forth in Article XXIX; provided, however, the Member Entity may, by resolution or ordinance, authorize its director and alternate on the Board to approve and execute amendments on behalf of the Member Entity 10.5.a Packet Pg. 56 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 9 without the necessity of a resolution or ordinance of the legislative body of the Member Entity confirming or ratifying such amendment. H. File, in a prompt and timely manner, all statewide, county, and locally-mandated reports and filings, including but not limited to the Fair Political Practices Commission's Statement of Economic Interests; I. Undertake a risk management audit of its facilities and activities, conducted by a person and/or firm approved by PARSAC's Executive Committee and, based upon such report, to evidence correction, elimination and/or clarification of all noted deficiencies or recommended corrections to the satisfaction of PARSAC's Executive Committee. Risk management audits may be required by the Executive Committee as frequently as it chooses. Risk management audits may be paid by PARSAC and charged back to Member; J. Provide PARSAC with a copy of its most recent audited annual financial statements prepared by a Certified Public Accountant; or, if not available, provide PARSAC with the most recent set of unaudited monthly financial statements, and any other financial material as may be requested by PARSAC from time to time; K. Cooperate with, communicate and assist in a timely manner, PARSAC and any insurer, provider of excess coverage, claims adjuster, legal counsel or other service provider engaged or retained by PARSAC in all matters relating to this Agreement; L. Promptly cooperate with PARSAC to determine and/or clarify any incidents which might become losses, the cause of any and all actual losses, and methods to bring about settlement of claims; M. Comply with its obligations and responsibilities under this Agreement, the 10.5.a Packet Pg. 57 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 10 Bylaws, the Memoranda of Coverage, the Risk Management Standards, PARSAC's policies and procedures, and any other contract or requirement [as any of the foregoing may be created or amended] necessary to implement this Agreement or any Program; N. Pay any fines or penalties assessed by the Board or any regulatory agency that are attributable to the Member Entity's failure to perform in accordance with self-insurance regulations or comply with the provisions of this Agreement. An appeal may be filed with the appropriate regulatory agency. All decisions of the Board are final. O. Use an Executive Committee-approved third-party claims administrator for claims handling, under such circumstances as the Board of Directors may require. Failure to comply with any of the obligations under this section may be grounds for expulsion pursuant to Article XXIV of this Agreement. ARTICLE VIII BOARD OF DIRECTORS Except as otherwise provided in this Agreement or in the Bylaws, the powers of PARSAC shall be exercised, its property shall be controlled, and its affairs shall be conducted by its Board of Directors whose meetings, functions and activities shall be governed by the Bylaws. The Board shall be composed of one director who represents and acts on behalf of each respective Member Entity which participates in PARSAC's Liability and/or Workers’ Compensation Program. The number of persons on the Board shall be equal to the number of Member Entities. In addition, each Member Entity shall appoint a second individual as alternate director, who shall have the authority to attend, participate in, and vote at any meeting of the Board when the respective director is absent. Each director and alternate director shall be an elected official or employee of the respective Member Entity, shall be appointed by the 10.5.a Packet Pg. 58 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 11 respective Member Entity's governing body, and shall serve at its pleasure. If a director or alternate ceases to be an employee or elected official of a Member Entity for any reason, his or her position on the Board and any of its committees shall immediately terminate. The Board of Directors shall have the following powers and functions: A. The Board shall exercise all powers and conduct all business of PARSAC, either directly or by delegation of authority to other bodies or persons pursuant to this Agreement and applicable law; B. The Board shall form an Executive Committee from its membership. In the Bylaws the Board shall delegate to that Committee such powers as it sees fit; C. The Board may form such other committees as it deems appropriate in conducting PARSAC's business; D. The Board shall elect PARSAC's officers; E. The Board shall cause to be prepared and adopt PARSAC's annual operating budget; F. The Board shall develop, or cause to be developed, and shall review, modify as necessary, and adopt each of PARSAC's Programs, including all provisions for reinsurance and administrative services necessary to carry out such Program; G. The Board shall contract or otherwise provide for necessary services to PARSAC and to Member Entities. These necessary services may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, actuarial consulting, claims adjusting, and legal defense services; H. The Board, either directly or through the Executive Committee, shall provide policy direction to PARSAC's General Manager; 10.5.a Packet Pg. 59 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 12 I. The Board shall receive and act upon reports of its committees and the General Manager, either directly or through the Executive Committee; J. The Board shall establish monetary limits upon any delegation of the claims payment and settlement authority, beyond which a proposed settlement must be referred to the Board for approval; K. The Board may require that PARSAC review, audit, report upon, and make recommendations with regard to the safety or claims administration functions of any Member Entity insofar as those functions are affecting PARSAC's liability or potential liability. The Board may forward any or all such recommendations to the Member Entity with a request for compliance and a statement of potential consequences for noncompliance; L. The Board shall receive, review and act upon periodic reports and audits of PARSAC's funds; M. The Board may amend, repeal or adopt new Bylaws, this Agreement or other key documents; N. The Board may increase, decrease, or otherwise amend the coverages, limits and other terms of any Memorandum of Coverage; O. The Board shall approve any proposal by the Executive Committee for Special Assessments from the Member Entities before such Special Assessments are billed; P. The Board may expel a Member Entity from any Program or from membership in PARSAC pursuant to Article XXIV of this Agreement; Q. The Board may ratify actions of the Executive Committee, where such ratification is required before the action becomes final; R. The Board may enter into a joint venture or contractual arrangement with any 10.5.a Packet Pg. 60 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 13 similar entity and may also enter into a merger or acquisition agreement with a similar entity, provided that if PARSAC is not the surviving entity in any such merger or acquisition, such action shall require approval by the vote of three-fourths of the Member Entities; and S. The Board shall have such other powers and functions as are provided for in this Agreement, the Bylaws, and applicable law. ARTICLE IX OFFICERS The officers of PARSAC shall be the President, Vice President, Treasurer, and Auditor/Controller, and their qualifications and duties shall be those set forth in the Bylaws. ARTICLE X EXECUTIVE COMMITTEE There shall be an Executive Committee, all of whose members shall be directors. The Executive Committee shall set policy for and direct the administration of PARSAC on a day-to- day basis and may, without limitation, provide incentives and impose penalties, financial or otherwise, for performing or failing to perform in conformance with PARSAC requirements, programs, standards and policies. The composition, specific authority and meeting arrangements of the Executive Committee shall be set forth in the Bylaws. ARTICLE XI ADMINISTRATION PARSAC shall have a general manager, who shall be appointed or terminated by the Executive Committee, shall be responsible to the Executive Committee for the efficient and effective administration of PARSAC, and who shall serve as the Secretary of PARSAC. The General Manager shall attend all meetings of the Board, the Executive Committee, and other committees of the Board (but shall have no vote), shall prepare and maintain all minutes of meetings of the Board and its Committees, notices of meetings, and records of PARSAC, and 10.5.a Packet Pg. 61 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 14 shall carry out all duties set forth in the Bylaws. ARTICLE XII BUDGET The Executive Committee shall recommend and the Board shall adopt an annual operating budget prior to the beginning of each Fiscal Year. ARTICLE XIII ANNUAL AUDITS AND REVIEWS A. Financial Audit. The Auditor/Controller shall cause an annual financial audit of the accounts and records to be prepared by a Certified Public Accountant in compliance with California Government Code Sections 6505 and 6505.5 or 6505.6 with respect to all receipts, disbursements, other transactions and entries into the books of PARSAC. The minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Government Code Section 26909 and shall conform to generally accepted accounting standards. A report of each such audit shall be filed as a public record with the Board, each of the Member Entities, and the auditor/controller of the county in which PARSAC’s administrative office is located. The report shall be filed within twelve [12] months of the end of the fiscal year under examination. PARSAC shall pay all costs for such financial audits. B. Actuarial Review. The Board shall cause an annual actuarial review to be prepared for each of the Programs of PARSAC and a report of such actuarial review shall be made available for inspection by the Board and the Member Entities. PARSAC shall pay all costs for such actuarial review. C. Claims Audit. The Board shall cause a biannual claims audit of the administration of the claims for each of the Programs of PARSAC. A report of such claims review shall be made available for inspection by the Board and the Member Entities. PARSAC 10.5.a Packet Pg. 62 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 15 shall pay all costs of such claims reviews. ARTICLE XIV ESTABLISHMENT AND ADMINISTRATION OF FUNDS PARSAC shall be responsible for the strict accountability of all funds and the reporting of all receipts and disbursements in accordance with generally accepted accounting principles. It will comply with all provisions of law relating to this subject, including California Government Code Sections 6500-6525. The Treasurer of PARSAC shall establish and maintain such funds and accounts as may be required by good accounting practices and by the Board. Separate accounts shall be established and maintained for each Program Year of each Program of PARSAC. Books and records of PARSAC in the hands of the Treasurer or other designated person shall be open to inspection at all reasonable times by members of the Board or authorized representatives of the Member Entities. The Treasurer shall have the custody of and disburse PARSAC’s funds. He or she may delegate disbursing authority to such persons as may be authorized by the Board to perform that function provided that, pursuant to Government Code Section 6505.5, the Treasurer shall: A. Receive and acknowledge receipt of all funds of PARSAC and place them in the treasury to the credit of PARSAC; B. Be responsible upon his or her official bond for the safekeeping and disbursement of PARSAC's funds so held by him or her; C. Pay any sums due from PARSAC as approved for payment by the Board or by any body or person to whom the Board has delegated approval authority, making such payments from PARSAC's funds upon warrants drawn by the Auditor; D. Verify and report in writing to PARSAC and to Member Entities, as of the first 10.5.a Packet Pg. 63 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 16 day of each quarter of the fiscal year, the amount of money then held for PARSAC, the amount of receipts since the last report, and the amount paid out since the last report; E. Prepare a complete written report of all financial activities within one hundred and twenty [120] days after the close of each fiscal year for such fiscal year to the Board and to each Member Entity; and F. Receive, invest, and disburse funds in accordance with the procedures established by the Board or the Bylaws and in conformity with applicable law. Pursuant to Government Code Section 6505.1, the General Manager, the Treasurer, and such other persons as the Board may designate shall have charge of, handle, and have access to PARSAC's property. PARSAC shall secure and pay for a fidelity bond or bonds, in an amount or amounts and in form specified by the Board, covering all officers and employees of PARSAC who are authorized to hold or disburse PARSAC's funds and all officers and employees who are authorized to have charge of, handle, and have access to PARSAC's property. The Authority shall defend and indemnify its directors, officers, and employees to the same extent as any other public entity of the State of California is obliged to defend and indemnify its public employees pursuant to California Government Code Section 825, et seq., or other applicable provisions of law. The Authority may insure or self-insure itself to the extent deemed necessary by the Board against loss, liability and claims arising out of or connected to the conduct of the Authority’s activities. ARTICLE XV SUPPORT OF PARSAC’S GENERAL EXPENSES Costs of staffing and supporting PARSAC [hereinafter called PARSAC's general 10.5.a Packet Pg. 64 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 17 expenses] shall be equitably allocated among the various Programs by the Board, and shall be funded by the Member Entities which participate in such Programs [and ex-Member Entities] in accordance with such allocations. ARTICLE XVI DEPOSIT PREMIUMS The Deposit Premiums for the Liability and Workers’ Compensation Programs shall be set at a level estimated to be sufficient, as determined by the Executive Committee, to cover PARSAC’s budget for each Policy year. The Deposit Premiums for the Member Entities shall be set by PARSAC using various rating and underwriting criteria, such as: [1] The Member Entity's payroll; [2] The Member Entity's exposure base; [3] The results of an on-site underwriting inspection; [4] The Member Entity's prior claims history; [5] Total insurable values; and/or [6] Employee classification ratings. Deposit Premiums for the Liability, Workers’ Compensation, and Group Purchase Programs shall be billed to the Member Entities. At the conclusion of each Program Year, PARSAC shall conduct a payroll audit of each Member Entity to adjust for any discrepancies between estimated and actual payroll. In the sole discretion of PARSAC, an on-site payroll audit may be conducted by PARSAC or an independent auditor. Any adjustments in payrolls, either debits or credits, shall result in an assessment of additional premiums or a return of overpaid premiums. This adjustment shall be made within sixty (60) days after the date of the audit. 10.5.a Packet Pg. 65 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 18 ARTICLE XVII PARSAC MEMBERSHIP Member Entities shall participate in PARSAC's Liability Program and/or Workers’ Compensation Program as a condition of membership in PARSAC. Participation in either Program shall be a minimum of three years and the Term shall be renewed for subsequent one- year periods at the commencement of each Program Year upon payment of the applicable Deposit Premium, unless termination, withdrawal, or expulsion occurs pursuant to Articles XXIII and XXIV of this Agreement. The Executive Committee shall establish the initial SIR for each Liability or Workers’ Compensation Program Participant and may require a different SIR for Program Participants from time to time, in its sole discretion. Program Years shall begin on July 1 of each year and shall continue through the following June 30. Retroactive coverage may be provided as approved by the Board and documented on the Declaration Page of the respective Memorandum of Coverage. ARTICLE XVIII MEMORANDA OF COVERAGE The types and amounts of coverage for each Program available to Member Entities shall be specified in a Declarations Page and/or Memorandum of Coverage which shall be issued by PARSAC to each Member Entity for each Program Year in which the Member Entity has coverage. The Board shall have the power and authority to decrease, increase, or amend the coverage provided by a Memorandum of Coverage. If any such amendment is approved by the Board during a Program Year, no Member Entity participating in that Program Year shall be entitled to withdraw by reason of any said amendment prior to the termination of that Program Year. 10.5.a Packet Pg. 66 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 19 ARTICLE XIX SIR MANDATORY RESERVES/PAYMENTS A Member Entity participating in the Liability Program must establish by resolution a “Fund Balance Reserve” (“Reserve”) equal to three times (3) the designated SIR, or any underlying insurance deductible chosen, and approved for the Member Entity by PARSAC. The Reserve will be recorded and maintained in the appropriate Member Entity Fund in accordance with Generally Acceptable Accounting Principles. PARSAC will be notified of any proposed adjustment to the Reserve prior to the Member Entity’s adoption of such a resolution. PARSAC may request certification, by the Member Entity, of the balance in the Reserve account at any time. Applicants establishing coverage with PARSAC shall be required to submit the “Fund Balance Reserve Resolution” prior to coverage inception. Any Member Entity which does not desire to establish a local Fund Balance Reserve at the required three-times its SIR, or underlying insurance deductible amount, may contract for an actuarial study of its losses and reserves by a Fellow of the Casualty Actuary Society (FCAS) to ascertain and represent to PARSAC adequate SIR Reserves. Such SIR amount shall be established as the correct Reserve for that Member Entity. Although not obligated to do so, PARSAC may elect to pay a portion of claims expenses before the Member Entity’s self-insured retention has been exhausted in order to expedite the resolution of a claim. In this event, the member will be invoiced and shall have 30 days from the date of invoice to remit reimbursement. A 10% penalty shall be applied to the balance if payment is not received by the due date. The claims payment procedures for members participating in the Workers’ 10.5.a Packet Pg. 67 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 20 Compensation Program with a self-insured retention are as follows: 1. The Member Entity shall set up a checking account with the Third-Party Administrator (TPA). The TPA shall pay all claim expenses within the Member’s Entity’s self-insured retention from the checking account. The Member Entity shall be responsible for ensuring sufficient funds are available for all costs related to the checking account, including any set-up fees charged by the TPA; or 2. PARSAC shall pay all claim expenses within the Member Entity’s self-insured retention, which shall be reconciled and invoiced to the Member Entity quarterly. The Member Entity shall have 30 days from the date of invoice to submit its self- insured retention payment. A 10% penalty shall be applied to the balance if payment is not received by the due date. This option is available to Member Entities with an SIR of $100,000 or lower. ARTICLE XX RETROSPECTIVE PREMIUM ADJUSTMENTS AND ASSESSMENTS Retrospective Premium Adjustments (RPA) for self-funded Programs shall be calculated annually as determined by each Program’s funding policy. The Board may determine and levy special assessments on Member Entities by majority vote. The RPA is a financial reconciliation made by PARSAC to determine whether the Deposit Premium collected for that Policy Year was sufficient to cover the costs. An RPA summary is presented annually to the Board for approval. Distribution of credits or collection of assessments will follow each Program’s funding policy. If a Member Entity has timely withdrawn or been expelled from a Program, any Retrospective Premium Adjustment credit shall remain with PARSAC until all Policy Year(s) in which they participated have been closed and reconciled. Any Retrospective Premium 10.5.a Packet Pg. 68 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 21 Adjustment deficit shall be billed to the Member Entity at the time that particular Policy Year(s) is being reconciled. If a withdrawn or expelled member’s total equity for all program years in which they participated is insufficient, the member will be billed at the time the deficit is identified. A member that has untimely withdrawn from a program foregoes their right to any remaining equity and is subject to assessment for any deficits. ARTICLE XXI NEW MEMBERS Any California public entity as defined in Article I may apply for membership in PARSAC and participation in any of PARSAC's Programs at any time. Public Entities must participate in either the Liability or Workers’ Compensation program before participating in other Program offerings. PARSAC shall review all requests for Program membership, and the Executive Committee shall approve and the Board shall ratify, which applicants shall be accepted for membership, in which Programs they may participate, and when such participation shall begin. Public Entities shall become new Member Entities as of the effective date of coverage indicated on the Program Declarations Page and upon payment of the Deposit Premium. Public Entities which are in the process of formation shall be covered only as of the effective date of formation. Deposit Premiums for coverage which begins during a Program Year may be prorated for the remainder of the Program Year. A Public Entity applying for membership in the Workers’ Compensation or Liability Program shall complete, return and comply with all of the following: A. An “Application for a Certificate of Consent to Self-Insure” from the Department of Industrial Relations/Division of Self-Insurance Plans (DIR/SIP) (Workers’ Compensation only); 10.5.a Packet Pg. 69 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 22 B. Loss reports for the five (5) most recent policy years; C. Estimated payroll for the current year and corresponding to the 5 years of loss data D. Liability Exposure questionnaire from PARSAC, questionnaires from the excess carrier or reinsurer, and most recent three years’ audited financial statements; E. Undertake a risk management audit of its facilities and activities and, based upon such audit report, provide evidence of correction, elimination and/or clarification of all noted deficiencies revealed by such inspection; and F. Such other information as is reasonably required by PARSAC to assure compliance with law and PARSAC policies. ARTICLE XXII WITHDRAWAL Any Member Entity who has been a member for at least three full fiscal years may withdraw from its status as a member and as a party to the Joint Powers Agreement by submitting notice in writing to PARSAC as follows: A. Timely Notice of Withdrawal. A withdrawing Member Entity must notify PARSAC of its intention to withdraw at least six (6) months prior to the end of the fiscal year in which the member intends to withdraw, unless a shorter withdrawal period is approved by the Executive Committee, in its sole discretion. Withdrawing members who submit Timely Notice shall be subject to an administrative fee equal to their pro-rata share of ongoing expenses for the three program years following withdrawal. Ongoing expenses include but are not limited to staff payroll and benefits, actuarial services, investment services, financial audits, and claims administration. Withdrawing member will be 10.5.a Packet Pg. 70 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 23 invoiced for their portion of the administrative fee each of the three years. Calculation and Payment of Fee. The administrative fee shall be calculated based on the member’s actual payroll and self-insured retention level in the last year in which the member participated. In year one, 100% of the administrative fee will be charged to the member; 50% in year two; and 25% in year three. The withdrawing member shall be invoiced for their portion of the administrative fee and it shall not be taken from equity. Should equity be insufficient to cover any deficit, the member will be subject to assessment. The withdrawing member’s equity will remain with PARSAC until all years in which the member has participated are closed. Any equity remaining after all years have closed will be returned to the withdrawn member. B. Untimely Notice of Withdrawal. Members submitting a notice of intent to withdraw less than six (6) months prior to the end of the fiscal year, but not later than April 1, in which the member intends to withdraw shall be considered untimely. In the event of an untimely notice of intent to withdraw, the withdrawing member shall forego their right to any remaining equity. In addition to foregoing equity, withdrawing members who submit Untimely Notice shall be subject to an administrative fee equal to their pro-rata share of ongoing expenses for the three program years following withdrawal. Ongoing expenses include but are not limited to staff payroll and benefits, actuarial services, investment services, 10.5.a Packet Pg. 71 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 24 financial audits, and claims administration, and will remain subject to both the administrative fee and assessments for all years in which they participated. Withdrawing members will be invoiced for their portion of the administrative fee each of the three years. Calculation and Payment of Fee. The administrative fee shall be calculated based on the member’s actual payroll and self-insured retention level in the last year in which the member participated. In year one, 100% of the administrative fee will be charged to the member; 50% in year two; and 25% in year three. Withdrawal from the Liability or Workers Compensation Program shall terminate coverage under that Program. If withdrawal would result in the Member Entity no longer being a member of either the Liability or the Workers Compensation Program, then such withdrawal shall constitute withdrawal from this Agreement and from membership in PARSAC, subject to the ex-Member Entity's continuing obligations under Article XXV below. A notice of intent to withdraw may be rescinded in writing with Executive Committee consent at any time earlier than ninety (90) days before the expiration of the withdrawal period, except that any withdrawal approved by the Executive Committee upon less than 6 months notice shall be final. Any Member Entity which withdraws as a participant in any Program may renew participation in that Program by complying with all Program rules and regulations. 10.5.a Packet Pg. 72 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 25 ARTICLE XXIII EXPULSION Regardless of its three-year commitment under the Liability and/or Workers’ Compensation Program, a Member Entity may be expelled from PARSAC or a Program either with or without cause. The General Manager shall review any lack of satisfactory performance or other problem with the Member Entity and shall attempt to resolve the matter. If the General Manager determines that the Member Entity is unwilling or unable to correct the problem, the General Manager shall present the matter to the Executive Committee. The Executive Committee may recommend to the Board that the Member Entity be expelled, either with or without cause. Written notice of the Executive Committee's recommendation for expulsion shall be delivered to the Member Entity with return receipt at least fourteen [14] days before the Board meeting at which the matter will be discussed. Action by the Board shall require the vote of a majority of the total number of directors. Expelled members are subject to the administrative fee for a timely withdrawal as described in Article XXIII, Paragraph A. In considering the expulsion of a Member Entity, the Executive Committee shall allow the affected Member Entity a reasonable opportunity to address and remedy the reasons, if any, for the proposed expulsion. The period of time so allowed shall be within the sole discretion of the Executive Committee. If such a reasonable opportunity is allowed, PARSAC may require quarterly audits to monitor the affected Member Entity's remedial actions or any other conditions to its continued participation in PARSAC or its Programs. A Member Entity which is the subject of a proposed expulsion shall be responsible for investigating the availability of alternate coverage. On the request of the Member Entity, the Board may permit the Member Entity a reasonable time to make arrangements for alternative coverage, but such period of time shall be at the Board's sole discretion. 10.5.a Packet Pg. 73 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 26 ARTICLE XXIV EFFECT OF WITHDRAWAL OR EXPULSION ON MEMBER ENTITY'S RESPONSIBILITIES The withdrawal or expulsion of any Member Entity after its participation in any Program shall not terminate its responsibility with respect to the following: A. Provide PARSAC with such statistical and loss experience data and other information as may be necessary for PARSAC to carry out the purposes of this Agreement; B. Pay to PARSAC when due any Deposit Premiums or Retrospective Premium Adjustments for each Policy Year of each Program in which it participated; C. Cooperate fully with PARSAC in determining the cause of losses in the settlement of claims; D. Cooperate with and assist PARSAC and any insurer, excess provider, claims adjuster, legal counsel or other service provider engaged or retained by PARSAC in all matters relating to this Agreement; and E. Comply with the Bylaws and all policies and procedures of PARSAC not inconsistent with the provisions of this Agreement and not inconsistent with its withdrawal from PARSAC. Disposition of Equity – Timely Withdrawal or Expulsion. In addition, PARSAC shall retain all remaining equity, and the ex-Member Entity is obligated to pay any future assessments made with respect to the Policy Years of any Program in which it participated, until all such Policy Year[s] have been closed, at which time PARSAC shall refund to the ex- Member Entity, any remaining equity which was not expended in settling, paying or otherwise resolving claims against the ex-Member Entity. Disposition of Equity – Untimely Withdrawal. PARSAC shall retain all remaining equity 10.5.a Packet Pg. 74 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 27 and the ex-Member Entity is obligated to pay any future assessments made with respect to the Policy Years of any Program in which it participated, until all such Policy Year[s] have been closed and the administrative fee charged per Article XXII, Paragraph B. ARTICLE XXV TERMINATION OF AGREEMENT AND DISTRIBUTION OF ASSETS This Agreement shall continue in full force and effect until terminated. Termination of this Agreement shall also constitute the termination of all Programs. This Agreement may be terminated at any time by the vote of three-fourths of the Member Entities; provided, however, that this Agreement and PARSAC shall continue to exist for the purpose of disposing of all claims and paying its obligations (to CalPERS) for employees’ health and pension benefits, before the distribution of assets, and any other functions necessary to wind up the affairs of PARSAC. Upon termination of this Agreement, all assets of each Program of PARSAC shall be distributed among the Member Entities [and ex-Member Entities which previously timely withdrew or were expelled] which participated in such Programs, in accordance with the retrospective premium adjustment process in effect during the term of this Agreement. Such distributions shall be determined within six [6] months after the disposal of the last pending claim or other liability covered by each Program. Following the termination of this Agreement, any Member Entity which was a participant in any Program of PARSAC shall pay any additional amount of premium, determined by the Board or its designee in accordance with a retrospective premium adjustment, which may be necessary to enable final disposition of all claims arising from losses under that Program during the Member Entity's period of participation. The Board is vested with all powers of PARSAC for the purpose of concluding and 10.5.a Packet Pg. 75 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 28 dissolving the business affairs of PARSAC. The Board may designate legal counsel and any committee or person to carry out a plan of dissolution adopted by the Board. ARTICLE XXVI NOTICES Notices to Member Entities under this Agreement or the Bylaws shall be sufficient if mailed to their respective addresses on file with PARSAC. Notices to PARSAC shall be sufficient if mailed to the address of the principal executive office of PARSAC, addressed to the General Manager. ARTICLE XXVII PROHIBITION AGAINST ASSIGNMENT No Member Entity may assign any right, claim, or interest it may have under this Agreement, and no creditor, assignee or third-party beneficiary of any Member Entity shall have any right, claim or title to any part, share, interest, fund, premium or asset of PARSAC. ARTICLE XXVIII AMENDMENTS This Agreement may be amended by a two-thirds vote of the Board present and voting at any duly convened regular or special meeting; provided that, any such amendment has been submitted to the directors and the Member Entities at least thirty [30] days in advance of such meeting. Member Entities may, by resolution or ordinance, grant their director and alternate on the Board explicit authorization to approve and execute amendments to this Agreement on behalf of the Member Entity without the necessity of a resolution or ordinance of the legislative body of the Member Entity confirming or ratifying such amendment. Any such amendment shall become effective immediately, unless otherwise stated therein. 10.5.a Packet Pg. 76 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 29 ARTICLE XXIX SEVERABILITY Should any portion, term, condition or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions and provisions shall not be affected thereby. ARTICLE XXX AGREEMENT COMPLETE The foregoing constitutes the full and complete agreement of the parties. There are no oral understandings or agreements not set forth in writing herein, except as noted with respect to the Bylaws and Memoranda of Coverage. If any provision of this Agreement conflicts with a provision of the Bylaws, Memoranda of Coverage or other document, such conflicting provisions shall be interpreted to avoid any such conflict, but this Agreement shall govern. 10.5.a Packet Pg. 77 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 30 ARTICLE XXXI EXECUTION OF COUNTERPARTS This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but altogether shall constitute one and the same Agreement. Public Agency Risk Sharing Authority of California ["PARSAC"] Date: By: ________________________________________ Name/Title Attest: __________________________________________ Deputy Secretary, PARSAC Member Entity: __________________________ Date: By: __________________________________________ Name/Title Attest: __________________________________________ City/Town Clerk 10.5.a Packet Pg. 78 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Adopted May 25, 2017 31 APPENDIX “A” PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA [PARSAC] MEMBER ENTITIES City of Amador City City of Avalon City of Belvedere City of Blue Lake City of California City City of Calimesa City of Calistoga City of Citrus Heights City of Clearlake City of Coalinga City of Ferndale City of Grass Valley City of Highland City of Menifee City of Nevada City City of Pacific Grove City of Placentia City of Placerville City of Plymouth City of Point Arena City of Rancho Cucamonga Rancho Cucamonga Fire Protection District City of Rancho Santa Margarita City of San Juan Bautista City of South Lake Tahoe City of Tehama City of Trinidad Town of Truckee City of Twentynine Palms City of Watsonville City of West Hollywood City of Wheatland City of Wildomar Town of Yountville City of Yucaipa Town of Yucca Valley 10.5.a Packet Pg. 79 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) PARSAC AGREEMENT FOR APPORTIONMENT OF RETIREMENT OBLIGATIONS Public Agency Risk Sharing Authority of California Appendix "C" Public Agency Rish Sharing Authority of California (PARSAC) Agreement for Apportionment of Retirement Obligations Dated May 25, 2017 10.5.a Packet Pg. 80 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA [PARSAC] AGREEMENT FOR APPORTIONMENT OF RETIREMENT OBLIGATIONS THIS AGREEMENT is made in the State of California by and among those municipalities organized and existing under the laws of the State of California, hereinafter referred to as "Member Entity[ies]," which are parties' signatory to the Joint Powers Authority Agreement (as revised effective May 25, 2017, hereafter "JPA Agreement. All such Member Entities are listed in Appendix "A,11 which is attached hereto and made a part hereof. RECITALS Whereas P ARSAC is an entity formed under California Government Code § 6500 which permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties. Whereas California Government Code§ 6508.2 requires that the member agencies of a joint powers agency ("AGENCY") mutually agree to a 100% apportionment of the AGENCY's retirement liability prior to either a dissolution of the AGENCY or the termination of the AGENCY's participation in a public retirement system. Now, therefore, in consideration of the above facts and the mutual benefits, promises and agreements set forth below, the Member Entities hereby agree as follow: AGREEMENT ARTICLE I DEFINITIONS The following terms shall have the following definitions: A."Agreement" shall mean this Revised and Restated Joint Powers Agreement creating the Public Agency Risk Sharing Authority of California [PARSAC]. 2 10.5.a Packet Pg. 81 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) B."Board" or "Board of Directors" shall mean the governing body of PARSAC.C."P ARSAC" shall mean the Public Agency Risk Sharing Authority of California createdby this Agreement. D."Deposit Premium" shall mean the estimated amount determined for each Member Entitynecessary to fund each layer of coverage for each Policy Year of each Program of PARSAC. E."Member Entity" shall mean any California public entity which is a party signatory to thisAgreement including any other agency for which the City Council sits as the Governing board. F.''Program Veart' shall mean a period of time, usually 12 months, for which each Programis to determine Deposit Premiums, Retrospective Premiums, and Retrospective Premium Adjustments. G.'•Program" shall mean arrangements to cover specific types of claims which may include,but not be limited to, property, workers' compensation, and comprehensive liability claims. H.''Public Entin" shall mean a county, city, whether general law or chartered, city and county,town, district, political subdivision, joint powers authority, or any board, commission, or agency thereofp_roviding a municipal service, excluding school districts.I.''Public Retirement System" shall mean CalPERS or any other Public Entity retirementprogram established or operated by a California Public Entity available to public employees as to which current or former employees of P ARSAC participated. J.'�Retirement Liability" shall mean the liability that PARSAC possesses to all former orcurrent employees of PARSAC for retirement benefits owed to them pursuant to a contract between PARSAC and a Public Retirement System and arising by reason of those employees participation in the Public Retirement System. 3 10.5.a Packet Pg. 82 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) K.'•Retrospective Premium" shall mean, the amount determined retrospectively as eachMember Entity's share of losses, reserves, expenses and interest income as may be determined periodically for any Program. L.'�Retrospective Premium Adiustmenf' shall mean the amount necessary to periodicallyadjust the Deposit Premium, or prior Retrospective Premiums if any, to the newly calculated Retrospective Premium amount. ARTICLE II PARTIES TO THE AGREEMENT Each Member Entity is a party to this Agreement and agrees that it intends to, and does contract with, all other parties who are signatories of this Agreement and with such other parties as may later be added. Each Member Entity also agrees that the expulsion or withdrawal of any Member Entity from this Agreement shall not affect this Agreement nor the remaining parties as to the other Member Entities then remaining. ARTICLE III PURPOSE This Agreement is entered into by the Member Entities in order to: A.Provide for an apportionment among current and fonner PARSAC Member Entitiesof 100% of P ARSAC' s Retirement Liability consistent with the requirements of Government Code §§ 6508.1 and 6508.2 as enacted and amended effective January 1, 2019. The current MemberEntities of PARSAC are set forth in Appendix A. The former Member Entities of PARSAC as of the date of this Agreement are set forth in Appendix B. 4 10.5.a Packet Pg. 83 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) ARTICLE IV MF.TH On OF A PPORTTONMF.NT OF RF,TIREMENT LIA RH JTY A.In the event of a decision by the governing Board of PAR SAC to dissolve and ceaseall operations, or in the event of a decision by the governing Board of P ARSAC to terminate PARSAC's contract with a Public Retirement System, the Member Entities agree that 100% of PARSAC' s Retirement Liability shall be funded by all current and former PARSAC Member Entities based on a pro rata share of the former and current Member Entities' historical Deposit Premium in the Workers' Compensation and Liability self-funded Programs. The apportionment of the Retirement Liability shall be calculated as set forth above, and the unfunded Retirement Liability then existing shall be paid as follows: The unfunded Retirement Liability then existing shall be paid prior to any distribution of assets as provided in ARTICLE XXV of the JPA Agreement and prior to the payment of any equity that may be determined as the result of the Retrospective Premium Adjustment process as set forth in ARTICLE XX. (For example, should a Member Entity have remaining equity in either the Workers' Compensation or Liability program, at the time of PARSAC's dissolution or PARSAC's termination of PARSAC's contract with a public retirement system, the Member Entity's equity shall first be applied to reduce that Member Entity's share of the apportionment of the Unfunded Retirement Liability.) B.In the event that PARSAC disposes of the real property identified as 1525 ResponseRoad, Sacramento, CA, 95815 (the "Property"), any unfunded Retirement Liability of PARSAC shall first be reduced by applying the proceeds from the sale of the Property as provided in Resolution 2019-03, attached hereto as Exhibit A, prior to the determination of the amounts owed by the former or current Member Entities under the apportionment provided herein. 5 10.5.a Packet Pg. 84 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) C.The apportionment of the Retirement Liability of PARSAC among the former andcurrent Member Entities of PARS AC and the obligation of the. former and c-urrent Member Entities to pay such apportionment of the PARSAC Retirement Liability as provided herein shall be a separate and independent obligation from the obligation of the Member Entities arising upon termination, expulsion or withdrawal of a Member Entity or upon termination of the Joint Powers Agreement (as revised effective May 25, 2017) including but not limited to ARTICLES XX, XXII, XXIII, XXIV and XXV of that Agreement. ARTICLE V TERM OF AGREEMENT This Agreement shall become effective as of the date hereof and shall continue in full force and effect for the purpose of paying 100% of the Retirement Liability of P ARSAC pursuant to the apportionment among former and current Member Entities as provided for herein. ARTICLE VI SEVERABILITY Should any portion, term, condition or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions and provisions shall not be affected thereby. ARTICLE VII AGREEMENT COMPLETE The foregoing constitutes the full and complete agreement of the parties. There are no oral understandings or agreements not set forth in writing herein, except as noted with respect to the Bylaws and Memoranda of Coverage. Ifany provision of this Agreement conflicts with a provision 6 10.5.a Packet Pg. 85 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 10.5.a Packet Pg. 86 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 8 Public Agency Risk Sharing Authority of California [“PARSAC’] Date: By: ________________________________ Name/Title Attest: ______________________________ Deputy Secretary, PARSAC Member Entity: _______________________ Date: By: ________________________________ Name/Title Attest: ______________________________ City/Town Clerk 10.5.a Packet Pg. 87 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 10.5.a Packet Pg. 88 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 10.5.a Packet Pg. 89 Attachment: CIRA JPA Agreement - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 1 65365.00002\33006226.3 BYLAWS of the CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY ARTICLE I. PREAMBLE The California Intergovernmental Risk Authority (“CIRA” or “the Authority”) is established for the purposes and under the authorities described in its Joint Exercise of Powers Agreement (“Agreement”). The Agreement specifies that Bylaws will govern many of the operations of the Authority, and defines certain terms used in these Bylaws. ARTICLE III. NEW MEMBERS Any California public agency that provides municipal services may become a Member of the Authority by agreeing to be bound by the Governing Documents and by complying with all of the following requirements: A. Submit a completed application for membership 90 days before the start of the fiscal year, including any required application fee; B. Submit a signed resolution acknowledging participation under the terms and conditions which then prevail; C. Execute the Agreement then in effect and agree to be bound by any subsequent amendments to the Agreement; D. Agree to be a Member for at least five consecutive fiscal years after commencement of membership or, if a member of the Public Agency Risk Sharing Authority of California (PARSAC) or the Redwood Empire Municipal Insurance Fund (REMIF) as of June 30, 2021, for two fiscal years after that date; E. Be accepted for membership by a two-thirds vote of the Board of Directors; F. Appoint, in writing, a representative to act as Director on the Authority’s Board and another to act as alternate Director in the absence of the Director, who shall be officers or employees of the Member; and G. Ensure the Director and alternate Director file with the Authority the required Fair Political Practices Commission (FPPC) forms upon assuming office, annually, and upon termination of office. Before the Board votes on a potential Member’s application, there shall be a review and interview of the applicant, in accordance with the Underwriting Guidelines, including the applicant’s most recent audited financial statement and associated management letters. This review may also include a safety inspection of the facilities of the applicant. A two-thirds vote of the Board of Directors is required to approve the 10.5.b Packet Pg. 90 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 2 65365.00002\33006226.3 application, based upon the application, and any inspections, reports, or other material pertinent to the decision. ARTICLE IV. MEMBER RESPONSIBILITIES Each Member is responsible for the following: 1. Cooperation with the Authority, its insurers, adjusters and legal counsel in determining the cause of losses in settling claims, and supporting effective risk management and risk transfer decisions; 2. Timely payment of all contributions, assessments, interest, penalties, or other charges imposed consistent with the Governing Documents; 3. Providing the Authority with statistical and loss experience and other data as requested. 4. Execution of a membership resolution for each Program in which the Member participates. 5. Appointing a representative and alternate to represent the Member on the Authority’s Board, expressly authorizing such representatives to act on behalf of the Member on all matters coming before the Board, and assuring that its representative or alternate regularly attend meetings of the Board and any committee to which a representative has been appointed. 6. Execution of amendments to this Agreement as set forth in Article XV; provided, however, the Member may, by resolution or ordinance, authorize its representative on the Board to approve and execute amendments on behalf of the Member without the necessity of a resolution or ordinance of the legislative body of the Member confirming or ratifying such amendment. 7. As required by the Authority, undertake risk management audits of its facilities and activities, conducted by a person and/or firm approved by the Authority and provide evidence of correction, elimination and/or clarification of all noted deficiencies or recommended corrections to the satisfaction of the Authority. 8. Use of an Authority-approved third-party claims administrator. 9. Payment for the costs of staffing and supporting the Authority (“general expenses”) shall be funded by the Members in accordance with the Board’s allocation of general expenses to the Authority’s various Programs. ARTICLE V. GOVERNING BOARD A. The governing body of the Authority shall be the Board of Directors (Board). The Board shall be comprised of one Director from each Member. Each Director has one vote. An alternate Director may cast a vote only in the absence of the Director. Each Director and alternate Director must be an officer or employee of the Member. A Member may change any of its representatives to 10.5.b Packet Pg. 91 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 3 65365.00002\33006226.3 the Board only by written notification to the Authority from the Member’s governing body or the Member’s Chief Executive Officer or equivalent. B. The Board shall provide policy direction for the General Manager, the Executive Committee, any other standing committees, and any administrative or legal service providers to the Authority. The Board may delegate any or all of its responsibilities, except those requiring a vote by the Board as specified in the Governing Documents. C. As to Program-specific agenda items, only the Directors representing Members that participate in that Program may vote, and as to such items a quorum shall be determined by reference to the number of Members participating in the Program. As to agenda items relating to all liabilities and obligations of CIRA existing prior to the Effective Date (“Preexisting Obligations”), only Directors representing Members who were members of the Authority prior to the Effective Date may vote, and as to such items, a quorum shall be determined solely by reference to the number of Members that were members of the Authority prior to the Effective Date. D. The Board reserves unto itself the authority to do the following (except where specifically noted, a simple majority of the Board present at a meeting may take action): 1. Accept a new Member to the Authority (two-thirds vote of the Board); 2. Accept indebtedness (two-thirds vote of the entire Board); 3. Adopt a budget; 4. Amend these Bylaws; 5. Elect and remove Officers; 6. Expel a Member from the Authority (two-thirds vote of the Board); 7. Approve dissolution of Authority (two-thirds vote of the entire Board); and 8. Approve financing costs from one Program to another (Program to Program borrowing) if such financing extends beyond a twelve-month period. E. The Board will meet at least once a year to review the operations of the Authority. The Board will establish a time and place to hold such regular meetings. The Board Secretary will mail notices of all Board meetings to each Member, keep minutes of the meetings, and send copies of such minutes to the Members. F. A special meeting may be called by the president or by a majority of the Board with twenty-four (24) hours’ notice, stating the purpose, date, time, and place of the meeting, provided such notice is in writing. G. Every Member is expected to have its Director or alternate attend Board meetings. 10.5.b Packet Pg. 92 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 4 65365.00002\33006226.3 H. All meetings of the Board shall be conducted in accordance with the Ralph M. Brown Act (Government Code §54950 et seq.) I. A quorum shall consist of a majority of the Directors then appointed and serving, without counting vacancies. All matters within the purview of the Board may be decided by a majority vote of a quorum of the Board, except as specified otherwise in the Governing Documents. ARTICLE VI. OFFICERS A. The officers of the Authority shall consist of a President, a Vice President, a Treasurer, an Auditor/Controller, and a Secretary. The Board shall elect the President, Vice-President, Treasurer, and Auditor/Controller. The President, Vice-President, and Auditor/Controller must be directors on the Board. The Treasurer may be a Director, an employee of the Authority, or an employee of a Member, and if the Treasurer is an employee of a Member the employee need not be the Member’s designated representative on the Board. The General Manager shall serve as Secretary. B. Initial officers shall serve staggered terms with the President and Treasurer serving a two-year term and Vice President and Auditor/Controller serving a one-year term. The terms of office for subsequent officer elections shall be two years. The President and Auditor/Controller will be elected in odd-numbered years and the Vice President and Treasurer will be elected in even- numbered years. C. Initial officers (other than the Secretary) shall be elected at the first meeting of the Board of Directors. At least 30 days before each subsequent election, the President may appoint a nominating committee as set forth in these Bylaws or propose a slate informally. D. The nominating committee’s nomination of candidates for elected officer positions shall be made in writing, and the slate of nominees will be sent to each Member at least seven (7) days before the last regular Board meeting of the fiscal year. Additional candidates for any of the offices may be made by an open nomination and second from the floor at the time of the meeting. E. The election of officers will be held at the last regular Board meeting of the fiscal year in which their terms expire or at a special meeting called for that purpose. Those candidates receiving a majority of votes cast for each office will succeed to those offices. If no nominee receives a majority of the vote, the nominee with the least votes shall be deleted as a nominee and a new vote taken. This elimination process will continue until one nominee receives a majority vote. Each Director or, in the absence of that Director, the Director’s alternate, shall be eligible to vote. F. Each elected officer will serve until the next election of officers, or termination of his or her employment with the Member, or until removal from office by a majority vote of the Board, whichever is earliest. G. The Board shall make the appointment to a vacancy in the office of the President. Vacancies in any other office shall be filled by appointments by the President with ratification by the Board at 10.5.b Packet Pg. 93 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 5 65365.00002\33006226.3 the next Board meeting held after the vacancy occurs. In the event that the Board fails to ratify an appointment, the President shall make another appointment which will be subject to ratification by the Board. H. The President shall preside at all meetings of the Authority. The President shall, with the consent of the Board or Executive Committee, appoint representatives to the board of any joint powers authority of which the Authority is a Member, and shall make all Committee appointments with the exception of the Executive Committee. The President shall execute documents on behalf of the Authority as authorized by the Board and shall serve as the primary liaison between the Authority and any other organization. The President shall serve as a member of the Executive Committee and as a nonvoting ex-officio member of all other Committees. I. In the absence or temporary incapacity of the President, the Vice-President shall exercise the functions of the President. The Vice-President shall serve as member of the Executive Committee and as a nonvoting ex-officio member of all other committees when the President is unable to attend. J. The Auditor/Controller shall be responsible for the duties and functions prescribed by Government Code Section 6505.6, as well as any other duties as may be specified by the Board or the Executive Committee. The Auditor/Controller may appoint an assistant to serve as needed, provided such assistant shall not be an employee or public official of the same Member as the Auditor/Controller. In the absence of both the President and Vice President at any one meeting, the Auditor/Controller shall preside over that meeting only and shall have powers and duties as may be required by the Board for this purpose. If the President, Vice-President, and Auditor/Controller will be absent from any one meeting, any of them may designate a director to preside over the meeting, but the designated director shall have only the powers and duties as may be required by the Board for this purpose. K. The Secretary shall be responsible for preparing all minutes and agendas of the Board, the Executive Committee, and any other Committee meetings, preparing necessary correspondence, and maintaining files and records. L. The Treasurer shall have no vote on the Board or Executive Committee unless the Treasurer is a designated representative of a Member to the Board. The Treasurer shall have the responsibility to establish and maintain such funds and accounts as may be required by accepted accounting practices and procedures prescribed by the Government Accounting Standards Board and by the Board. Separate accounts shall be established and maintained for each Program Year of each Program. Books and records of the Authority in the hands of the Treasurer or other designated person shall be open to inspection at all reasonable times by members of the Board or authorized representatives of the Members. The Treasurer shall disburse Authority funds, accounts, and property, in accordance with the Government Code and at the direction of the Board. M. An Officer Emeritus is a retired or former member of the Authority’s or REMIF’s Executive Committee or Board of Directors, preferably an Officer, having served three terms or more on the Executive Committee or six years on the Board for each agency. The Officer Emeritus serves to maintain the institutional knowledge, culture, and practice of CIRA. The Officer Emeritus is 10.5.b Packet Pg. 94 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 6 65365.00002\33006226.3 independent and does not represent any Member. The Officer Emeritus attends and may participate in meetings but does not vote. The Officer Emeritus may represent CIRA as directed and may serve as a mentor or advisor as needed and available. The Officer Emeritus receives a stipend as determined by the Board via resolution and reimbursement for reasonable travel expenses. The Executive Committee shall appoint up to two Officers Emeritus to be affirmed by the Board. The Officer Emeritus position will be re-evaluated by the Board after five years. ARTICLE VII. COMMITTEES A. Executive Committee. There shall be an Executive Committee to conduct the day-to-day business of the Authority. The Board may create other committees, standing or temporary, as it deems necessary. B. All committee meetings shall be conducted in accordance with applicable law, including but not limited to the Ralph M. Brown Act (Government Code § 54950, et seq.). For all committees, a quorum shall consist of a majority of committee members then appointed and serving, without counting vacancies. All matters within the purview of a committee may be decided by a majority vote of a quorum of the committee, except as specified otherwise in the Governing Documents. C. The Executive Committee shall be composed of thirteen members including the President, Vice- President, Treasurer (if a Board Member), and Auditor/Controller, and nine (or ten, if necessary) other individuals, all of whom must be Directors and not alternates. Five of the nine shall be elected by the Board in even numbered years and four (or five, if necessary) shall be elected by the Board in odd numbered years. One each shall be elected by the Directors in each of three regions designated by the Board. One each shall be elected by the Directors in each of three size categories (small, medium, and large) designated by the Board. Three (or if necessary four) shall be elected at large. Executive Committee members may be re-elected without restriction. All nine shall be elected in the first election following adoption of these Bylaws, with either four or five being designated to serve an initial term of one year until the next election depending on whether the next year is odd or even. For the first two elections after these Bylaws become effective on July 1, 2021, at least five members of the Executive Committee shall be from former members of the Redwood Empire Municipal Insurance Fund. No Member shall be represented by more than one member on the Executive Committee. D. Members of the Executive Committee may be removed with or without cause by the Board, which shall elect replacements for the vacancies caused by such removal. Members may also be removed for failure to attend two consecutive meetings without reasonable excuses. The President may appoint replacements to fill any vacancies caused by death, disability, resignation, disqualification, or removal for unexcused absences, and such appointees shall serve until the next meeting of the Board, at which time the selection of replacement shall be ratified or another replacement elected. E. The Executive Committee may exercise all powers and authority of the Board, except those reserved to the Board as set forth in Article V.D. The Executive Committee may make recommendations to the Board on matters including a change in Members’ retention levels, approval of the annual budget, and approval of new Members. The Executive Committee may also establish subcommittees, define their functions and responsibilities and appoint members 10.5.b Packet Pg. 95 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 7 65365.00002\33006226.3 to them; appoint or terminate the General Manager; and exercise such other powers and perform such other duties as these Bylaws or the Board may prescribe. F. PARSAC Committee. The Board shall appoint a committee made up of representatives of Authority members that were members prior to the Effective Date to make recommendations to the Board regarding the administration of the Preexisting Obligations. G. Personnel Committee. The Officers (not including the Secretary or any Treasurer who is not a Director) and two other Directors appointed by the President (three if the Treasurer is not a Director) shall serve collectively as the Personnel Committee, with the authority to oversee, review and recommend action to be taken by the Executive Committee regarding the performance and compensation of the General Manager and any other personnel issues. ARTICLE VIII. GENERAL MANAGER A. The General Manager shall be the Chief Administrative Officer and Secretary of the Authority, appointed by the Board and serving at the pleasure of the Board. The General Manager may not be an employee or an officer of a Member. B. The General Manager shall be responsible for administering the operations of the Authority, including giving notices of meetings, posting of agendas for meetings, preparation of minutes of meetings, maintenance of all accounting and other financial records of the Authority, filing of all financial reports of the Authority, reporting activities of the Authority to Members, and other such duties as the Board may specify. C. The General Manager shall appoint all staff positions of the Authority, subject to budget approval by the Board, and shall be responsible for their supervision. D. The General Manager shall attend all meetings of the Board and Executive Committee ARTICLE IX. SETTLEMENT OF CLAIMS A. The General Manager shall have authority to settle workers compensation, property and liability claims up to the limit specified by Board policy but not to exceed the actual amount of the claim. The Executive Committee, Board, or a designated claims committee, if appointed, shall have authority to settle claims beyond the authority of the General Manager. B. For workers’ compensation claims, staff has standing authority to pay benefits due under workers’ compensation law for medical benefits, temporary disability, etc. and to resolve permanent disability claims up to statutory requirements. Any settlements for permanent disability and/or a compromise and release exceeding the statutory requirements may be settled by the General Manager, or by the Executive Committee or Board for amounts in excess of the General Manager’s authority up to the Authority’s limit of coverage. 10.5.b Packet Pg. 96 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 8 65365.00002\33006226.3 ARTICLE X. FINANCIAL AUDIT A. The Auditor/Controller shall cause an annual audit of the financial accounts and records of the Authority to be made by a qualified, independent individual or firm. The minimum requirements of the audit shall be those prescribed by law. B. The financial audit report shall be filed with the State Controller’s Office within six months of the end of the fiscal year under examination. A copy of the audit report shall be filed as a public record with each Member. C. The costs of the audit shall be charged against the operating funds of the Authority. ARTICLE XI. FISCAL YEAR A. The fiscal year of the Authority shall be the period from July 1 of each year through June 30 of the subsequent year. ARTICLE XII. BUDGET A. A draft budget shall be presented to the Board at the last scheduled Board meeting prior to July 1 of the next fiscal year. B. The Board shall adopt the annual budget by July 1 of each year. ARTICLE XIII. ESTABLISHMENT AND ADMINISTRATION OF FUNDS A. The Authority is responsible for the strict accountability of all funds and reports of all receipts and disbursements. It shall comply with every provision of law relating to the subject, particularly Section 6505 of the Government Code. The Treasurer shall receive, invest, and disburse funds only in accordance with procedures established by the Board and in conformity with applicable law. B. The funds received for each Program shall be accounted for separately on a full-accrual basis. The portion of each Program’s annual contribution allocated for payment of claims and losses shall be held by the Authority in trust for the Program members. C. The Treasurer may invest funds not required for the immediate operations of the Authority, as directed by the Board or Executive Committee, in the same manner and on the same conditions as local agencies as provided by Government Code Section 53601. D. The General Manager shall draw warrants to pay demands against the Authority, after such demands have been approved by both the President and the Treasurer, except for employee payroll and benefits disbursements, and other unusual or urgent circumstances as determined 10.5.b Packet Pg. 97 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 9 65365.00002\33006226.3 by the General Manager. All checks disbursing funds of the Authority shall be signed by at least two Authority officials, one of whom must be the General Manager or designee. E. Officers, directors and employees handling funds shall be properly bonded as determined by the Board or Executive Committee. ARTICLE XIV. PROGRAMS A. The Authority shall establish Programs in such areas as the Board may select including, but not limited to, the areas of property, workers’ compensation, and liability coverage. B. Coverage in a Program may be provided by a self-funded risk-sharing pool, participation in pooled excess self-insurance, purchased insurance, reinsurance or any combination thereof, as determined by the Board or Executive Committee. C. The Authority may authorize and use administrative funds to study the feasibility and development of new Programs. If a new Program is approved by the Board, the estimated contributions to fund the Program shall be developed and presented in writing to each Member. Each Member shall have sixty (60) days from the date of such notice to state in writing its intent to join or refrain from joining the new Program. Unless the Member provides written notice to the Authority of its intent to participate in the new Program, it shall be presumed that the Member declines to participate in the Program. Upon conclusion of the notice period, the final contributions will be determined and billed to the Members in the new Program. Each Member that elected to participate will be bound to the new Program for the period of time required by the Master Program Document. D. The Board will adopt and maintain a Memorandum of Coverage and Master Program Document, and determine the financial contributions to be required of the Members for each Program. The Memorandum of Coverage or Master Program Document shall, among other things, establish procedures for addressing claims disputes. E. Each Program will be financially self-contained and individually evaluated for administrative and equity allocation purposes. Each fiscal year within each Program shall be separately accounted and maintained. Program funds may be co-mingled with the funds of another Program for durations shorter than a twelve-month period, or when specifically allowed by the Board. F. Each Member shall cooperate fully with the Authority to provide underwriting and safety and loss control information. Additionally, each Member shall comply with the provisions of the annual Safety and Loss Prevention Program Plan as approved by the Board. G. Members with delinquent amounts due may be assessed a penalty which shall be set by the Authority. H. The condition of each Program shall be evaluated by an independent actuary. The Workers’ Compensation and Liability Programs shall receive such evaluation on an annual basis. Other Programs shall be evaluated as determined by the Board. The condition of each open fiscal year within each such Program shall be evaluated to determine its actuarial soundness. If it is 10.5.b Packet Pg. 98 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 10 65365.00002\33006226.3 determined by the actuary that any year is no longer actuarially sound, appropriate actions shall be taken. In addition, the Board reserves the right to assess all Members and/or the Members of any Program an amount determined by the Board to be necessary for the soundness of the Program and to allocate such assessment in a fair and equitable manner. I. The withdrawal or expulsion of a Member from any Program shall be in accordance with the provisions of the Master Program Document. J. The withdrawal or expulsion of any Member from any Program shall not terminate the Member’s responsibility to contribute its share of contributions, or funds, to any fund or Program in which it participated, nor its responsibility to provide requested data for the periods in which it participated. All current and past Members shall be responsible for their respective share of the expenses, as determined by the Authority, until all claims, or other unpaid liabilities covering the period of the Member’s participation in the Program, have been finally resolved and a determination of the final amount of payments due by, or credit to, the Member for the period of its participation has been made by the Board. Past Members shall receive any distribution of surplus based on the same methodology as current Members. The withdrawal or expulsion of any Member from any Program shall not require the repayment or return to that Member of all or any part of any contributions, payments, advances, or distributions except in conformance with the provisions as set forth herein and in the Master Program Document. K. The Treasurer may deposit and invest Authority funds, subject to the same requirements and restrictions that apply to deposit and investment of the general funds of a city incorporated in the State of California and in accordance with the Investment Policy adopted annually by the Board. L. The accounting method for each Program will be in accordance with the provisions of the Master Program Document and the principles established by the Government Accounting Standards Board. ARTICLE XV. WITHDRAWAL, DEFAULTS AND EXPULSION FROM THE AUTHORITY A. Withdrawal from a Program 1. Any Member which withdraws as a participant in any Program may renew participation in that Program by complying with all Program rules and regulations. 2. All Members must participate in at least one of the following two Programs: Workers’ Compensation and Liability. If withdrawal from a Program would result in the Member no longer participating in either of these two Programs, then such withdrawal shall constitute withdrawal as a party to the Joint Powers Agreement, subject to the Member’s continuing obligations outlined in this Agreement and any other relevant governing documents. Withdrawal from the Authority pursuant to this Section A requires one year’s notice of intent to withdraw as described in Section B below. 10.5.b Packet Pg. 99 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 11 65365.00002\33006226.3 B. Withdrawal from the Authority 1. A withdrawing Member must notify CIRA of its intention to withdraw at least one year prior to the end of the fiscal year in which the Member intends to withdraw, unless a shorter withdrawal period is approved by the Executive Committee, in its sole discretion. 2. Withdrawing Members shall forfeit any remaining equity. In addition to foregoing equity, withdrawing members shall be subject to an administrative fee equal to their pro-rata share of ongoing expenses for the three program years following withdrawal. Ongoing expenses include but are not limited to staff payroll and benefits, actuarial services, investment services, financial audits, and claims administration. The withdrawing member will be invoiced its portion of the administrative fee for each of the three years, as outlined in the Master Program Document. 3. Following withdrawal, any Member which was a participant in any Program shall be responsible for its share of any additional amount of contribution, determined by the Board in accordance with the retrospective contribution adjustment, which may be necessary to enable final disposition of all claims arising from losses under that Program during the withdrawn Member’s period of participation. Any such additional contribution shall be taken first from the Member’s forfeited equity, if any, and if such equity is insufficient the withdrawn Member shall be responsible to pay the difference. 4. A notice of intent to withdraw may be rescinded in writing with Executive Committee consent at any time earlier than ninety (90) days before the expiration of the withdrawal period, except that any withdrawal approved by the Executive Committee upon less than six (6) months’ notice shall be final. C. The following shall be “defaults” under the Agreement and these Bylaws: 1. Failure by a Member to observe and/or perform any covenant, condition, or agreement under the Governing Documents, including but not limited to risk management or loss reporting procedures; 2. Consistent failure to attend meetings by a Member’s designated representative or alternate, submit requested documents, or cooperate in the fulfillment of the Program objectives; 3. Failure to pay any amounts, including penalties and interest, due to the Authority for more than thirty (30) days; 4. Consistent inability to sustain the financial and insurance criteria that was reviewed and considered upon application for membership. For example, excessive losses, financial distress of member, handling of legal matters, corrective actions and other areas as determined by the Board; 10.5.b Packet Pg. 100 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 12 65365.00002\33006226.3 5. The filing of a petition applicable to the Member in any proceedings instituted under the provisions of the Federal Bankruptcy Code or under any similar act which may hereafter be enacted; or 6. Any condition of the Member which the Board believes jeopardizes the financial viability of the Authority. C. Remedies on Default 1. Whenever any default has occurred, the Authority may exercise any and all remedies available pursuant to law or granted pursuant to the Agreement and these Bylaws including, but not limited to increasing a Member’s retention, penalty, or assessment, canceling a Member’s coverage, or expelling the Member. However, no remedy shall be sought for defaults until the Member has been given thirty (30) days’ notice of default by the Authority. 2. Probation of a Member from a Program and/or Authority: a. If deemed appropriate by the Authority a member may be put on probation for a defined period of time to remedy any stated failures or matters noted in this Article. b. Notice of such probation shall be in writing and signed by both parties. c. The probation remedies and timelines shall be stated clearly in the notice of probation so that the Authority’s actions at the end of the probation period are understood by both parties. 3. Expulsion of a Member from the Authority: a. The Board, with at least a two-thirds vote, may expel any Member that is in default from the Authority. b. Such expulsion shall be effective on the date prescribed by the Board, but not earlier than thirty days after notice of expulsion has been personally served or sent by certified mail to the Member. c. The expulsion of any Member from any Program, after the effective date of such Program, shall not terminate its responsibility to contribute its share of contributions, or funds, to any fund Program in which it participated, nor its responsibility to provide requested data for the period(s) in which it participated. D. Cancellation by the Authority of Coverage under a Program: 1. Upon the occurrence of any default, the Board may temporarily cancel all rights of the defaulting Member in any Program in which such Member is in default until such time as the condition causing default is corrected. 10.5.b Packet Pg. 101 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 13 65365.00002\33006226.3 2. Upon the occurrence of any default, the Board, with at least a two-thirds (2/3) vote, may cancel permanently all rights of the defaulting Member in any Program in which such Member is in default. E. No remedy contained herein is intended to be exclusive. No delay or failure to exercise any right or power accruing upon any default, shall impair any such right or shall be construed to be a waiver thereof. F. In the event any provision in any of the Governing Documents is breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. G. Except as stated in this Article or elsewhere in the Governing Documents, neither withdrawal nor expulsion shall extinguish the rights and obligations of the parties incurred prior to such withdrawal or expulsion. ARTICLE XVII. LEGAL REPRESENTATION A. Legal counsel may be retained by the Board to advise on matters relating to the operation of the Authority and interpretation of the Governing Documents, including but not limited to the Memoranda of Coverage. In matters in which the parties’ interests are adverse or potentially adverse, counsel for the Board shall only represent the Board and shall not represent any individual Member without the informed written consent of both parties. B. The Authority shall have the right to pay such legal counsel reasonable compensation for said services. ARTICLE XVIII. EXECUTION OF CONTRACTS A. The Board or Executive Committee may authorize any officer or officers, or any agent or agents, to enter into any contract or execute any instrument in the name, and on behalf, of the Authority and such authorization may be general or confined to specific instances. B. Unless so authorized by the Board, no officer, agent, or employee shall have any power or authority to bind the Authority by any contract or to pledge its credit or to render it liable for any purpose or to any amount. ARTICLE XVIV. EXPENSE REIMBURSEMENT AND INSURANCE A. The Authority shall reimburse any Director who does not otherwise receive compensation for actual expenses incurred, for reasonable out of pocket expenses of the Director in the performance of his/her duty on behalf of the Authority. 10.5.b Packet Pg. 102 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) 14 65365.00002\33006226.3 B. The Authority shall obtain insurance or provide other coverage (which may include self- insurance) indemnifying the directors, officers, and employees for personal liabilities arising out of wrongful acts in the discharge of their duties to the Authority. ARTICLE XIX. NOTICES A. Any notice to be given to any Member, in connection with these Bylaws, must be in writing (which may include facsimile or email) and will be deemed to have been given when deposited in the mail to the address specified by the Member to receive such notice. Any notice delivered by facsimile will be deemed to have been given when the facsimile transmission is complete. Any notice delivered by email will be deemed to have been given when the message is successfully sent. Any Member may, at any time, change the address to which such notice will be given by giving five (5) days written notice to the Authority. B. Any notice to or claim against the Authority shall be mailed or delivered to the mailing address of the Authority. ARTICLE XX. EFFECTIVE DATE, AMENDMENTS, AND SUPREMACY A. These Bylaws shall be effective immediately upon the date of adoption. B. Any amendments to these Bylaws shall be effective upon adoption, unless the Board in adopting them specifies otherwise, and shall supersede and cancel any prior Bylaws and/or amendments thereto. C. These Bylaws shall not be amended until at least 30 days after notice of the proposed amendment has been given to each Member. D. The adoption or amendment of these Bylaws shall not affect the Agreement or any amendments thereto. Any provision in these Bylaws which is inconsistent with the Agreement shall be superseded by the Agreement but only to the extent of the inconsistency. ARTICLE XXI. POWER OF DESIGNATED PARTY A. Pursuant to Government Code section 6509, the Authority is subject to the restrictions upon the manner of exercising the power of the City of Rancho Cucamonga. In the event that the City of Rancho Cucamonga ceases to be a member of the Authority, the Authority’s power shall be subject to the restrictions applicable to the City of Sebastopol. 10.5.b Packet Pg. 103 Attachment: CIRA Bylaws - Approved by PARSAC-REMIF (2696 : CIRA JPA Merger with PARSAC) Who is the other organization that we are merging with? We are forming a partnership with the Redwood Empire Municipal Insurance Fund (REMIF). REMIF is a pool of 15 cities located throughout five counties in Sonoma, Napa, Lake, Mendocino and Humboldt. REMIF offers self-funded general and auto liability, employment liability, workers’ compensation, and health programs. A majority of REMIF members are full-service cities providing police and/or fire services. REMIF’s total payroll is $131 million. Why are we merging organizations? The pooling industry has dramatically changed throughout the past decade. Some pools have dissolved due to retirement of key personnel, inability to remain fiscally solvent and have absorbed by larger organizations. The industry has also become very competitive with pools competing for new members in a finite market. Larger organizations may leverage their assets to offer short term rates reductions, programs and services to attract new members; while smaller organizations, such as PARSAC and REMIF, are somewhat vulnerable to these aggressive marketing campaigns. The merger of our organizations will strengthen the pool. It will lead to long term stability and sustainability as we will be able to spread risks and operating costs to a larger base of members. Bigger is not always better. However, when pooling risks, bigger is generally better as there are more members to share losses. The financial impact due to a series of adverse loss years will be diminished because our larger size. A larger membership base will also result in more predictable funding and reserving forecasts (with more available data), which reduces the likelihood of future assessments. Finally, it will ultimately result in lower operating costs. Consolidating operations will eliminate redundancies, achieve economies of scale, improve service deliver, and we will be in better position to leverage our larger size for better services, rates and coverage with service providers and excess insurers. What is the name of the new organization? The new organization will be the California Intergovernmental Risk Authority (CIRA). What is the effective date for CIRA? It is proposed CIRA will begin to provide coverage and services to its members July 1, 2021. 10.5.c Packet Pg. 104 Attachment: CIRA FAQ (2696 : CIRA JPA Merger with PARSAC) Will my agency have representation on the CIRA Board? Yes, each member will be represented by one Board Director and one Alternate Director. Each member will have one vote. What will be the role of the Board? The duties of the CIRA Board will be very similar to the current PARSAC Board. CIRA Board members will adopt the budget, approve new members, approve dividends and assessments, approve new programs and services, elect officers, etc. Will the Executive Committee composition remain the same? No, the Executive Committee will expand from 11 to 13. For the first two election cycles, former REMIF members will occupy at least 5 Committee seats. At least one of these seats will be an officer position (President, Vice President, Treasurer, Auditor Controller). Committee members will be elected to serve a two-year term. How many Board meeting will there be and where will they be located? There will be two semiannual Board meetings each year. Although not yet determined, it is very likely Board meeting will continue to be held in Sacramento and will be held in May and December How long is my agency committed to CIRA membership? Existing PARSAC and REMIF members must participate for two fiscal years. New CIRA members may withdraw after 5 years. Will there be any staffing changes? The staffs of both organizations will be combined. Although there will not be any positions eliminated, job duties and assignments may be reassigned to achieve efficiency and improve service delivery. What happens to my agency’s equity in liability and workers’ compensation programs? PARSAC program equity and assets will not transfer to CIRA. Each organization will retain their respective equity and liability pre-merger. We will continue to determine equity through the retrospective premium adjustment process annually. PARSAC members will determine, independently, how and when pre-merger equity is ultimately returned. 10.5.c Packet Pg. 105 Attachment: CIRA FAQ (2696 : CIRA JPA Merger with PARSAC) Will my existing claims transfer to CIRA? No, claims with incident dates prior to the merger (June 30, 2021 or before) will remain with each organization. Each organization will determine, independently, how those claims are concluded. What will happen to my agency’s grant funds? Grants funds allocated to your agency will remain with you. You may continue to use your grant funds once we become CIRA. Will there be any change in coverage? We will continue to offer the same coverages as currently provided, general liability, employment liability, workers’ compensation, property, crime/employee dishonesty, special events, etc. We are currently analyzing excess providers for general liability, workers’ compensation, and employment liability programs, and exploring alternative property coverage which will provide broader coverage and potentially lower costs. In the coming months, the analysis will be presented to the Transition Committee for review. In addition, REMIF offers a self-funded health program and this will be available to PARSAC members. How will the merger affect my annual program premium contributions? We will be allocating fixed costs to more members and this will reduce overall administration costs. Funding rates will be more stable (in the long term) as the predictive value of our loss data become more credible with a larger membership base. The actuary will complete his funding analysis later this year. Although there will be normal contribution adjustments due to changes in members’ payroll and loss experience, our goal is to limit rate changes to no more than +/- 10% due to the merger. Where will the CIRA office be located? The CIRA office will be based out of our current PARSAC location. REMIF will continue to maintain and provide certain pre-merger programs and services through its Sonoma office, as well as house some CIRA employees. The operating expenses for both buildings relating to CIRA’s self-funded and insured programs (liability, workers’ compensation, property, etc.) will be allocated to all CIRA members. Will PARSAC members be able to participate in REMIF’s self-funded health program? Yes, PARSAC members will eligible to participate in this program if they meet all qualifying underwriting standards. 10.5.c Packet Pg. 106 Attachment: CIRA FAQ (2696 : CIRA JPA Merger with PARSAC) 10.5.c Packet Pg. 107 Attachment: CIRA FAQ (2696 : CIRA JPA Merger with PARSAC) CITY OF MENIFEE SUBJECT: Budget Carryovers to Fiscal Year 2020/21 MEETING DATE: October 21, 2020 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 balance of budget carryovers, as of June 30, 2020 for all ongoing operating requests, ongoing grants, and capital programs to Fiscal Year 2020/21. DISCUSSION With the passage of the budget, it is assumed that all revenues will be earned and all expenditures will be expended by the end of the fiscal year. Due to the timing of receiving goods and services, the specific performance period of grant funded projects/program and the multi- year capital improvement projects, some expenditures are not fully exhausted within the fiscal year and must be carried over into the new fiscal year. These expenditures, if not incorporated within the following year’s budget, must be re-appropriated by City Council and added to the newly adopted budget. On June 3, 2020, the Menifee City Council adopted the Fiscal Year 2020/21 operating and capital budget for a total City-wide appropriations of $90,712,363, of which $59,686,575 represented total appropriations for the General Fund including Measure DD. Based on departmental requests, a total of $29,728,837 in carryover expenditure items are requested for approval and $3,930,872 in carryover revenues. Attachment A, reflects the detailed purchase orders, Attachment B reflects the ongoing grants and Attachment C reflects the ongoing capital projects that require City Councils approval to carryover to fiscal year 2020/21. Below is a summary, by fund, reflecting the requested carry-over appropriation. Additionally, the table below summarizes the proposed carryovers by the following categories: - Purchase Order (PO) (Attachment A): Existing contracts/purchase order (POs) where work/services commenced in the Fiscal Year 2019/20 period, but will continue into the Fiscal Year 2020/21 year. A contractual commitment in the form of an executed contract 10.6 Packet Pg. 108 City of Menifee Staff Report Budget Carryovers to Fiscal Year 2020/21 October 21, 2020 Page 2 of 7 and/or PO has been issued for the respective goods/services, and is being carried forward into the new fiscal year. - Grant Projects/Programs (Attachment B): Projects/programs funded by grants funds. The implementation/completion of these are governed by the specific terms of the grant agreement and can range from one year to multiple years. Carryover grant projects/programs represent remaining anticipated expenditures and revenues in the Fiscal Year 20/21 period. Most grants are funded as reimbursement grants, meaning the City must complete the funded project/program/activity first, and then seek/receive reimbursement from the funding entity. Grant reimbursements are recognized within the fiscal year(s) they are received. Grant expenditures are recognized in the fiscal year(s) they are expended. - CIP Projects (Attachment C): These include CIP projects generally completed within a one to two year time frame. Project activity can range from pre-construction, design, engineering to construction projects. These projects are included within the Fiscal Year 2019/20 adopted CIP Program, and remaining activities are proposed to be carried forward into the new fiscal year. - Multi-Year CIP and Other Projects (Attachment C): These generally represent larger/more complex projects (CIP, Housing Element Update etc.) requiring multi-year coordination for delivery of project including, but not limited to: • Funding strategy/plan • Pre-construction activities • Design • Environmental • Right-of-Way Acquisition • Construction Funding for Multi-year CIP and Other Projects, in particular may involve a funding plan across several fiscal years to fully bring together the required funding to complete the project. For example, CIP 13-03: Holland Road Overpass Project, is estimated to cost $30 million (reflecting increased construction costs) from beginning to end of the project (pre-construction activities to construction completion). As of Fiscal Year 20/21 the project is in the final stages of the Right- of-Way Acquisition process, before moving into construction. The remaining costs of $25 million needed for construction, are phased to be funded through Fiscal Year 2021/22 because of the significant costs and complexity of the project. Other multi-year CIP projects, such as the traffic signal communication projects, which receive federal funds through grants, require several years to coordinate design and construction activities with Caltrans. Fund Fund Name Expenditure Type Expenditure Amount 100 General Fund CIP/Multi-Year CIP/Other $101,153 Purchase Order (PO) 1,228,587 100 Total 1,329,739 10.6 Packet Pg. 109 City of Menifee Staff Report Budget Carryovers to Fiscal Year 2020/21 October 21, 2020 Page 3 of 7 Fund Fund Name Expenditure Type Expenditure Amount 105 Measure DD CIP/Multi-Year CIP/Other 1,065,829 Purchase Order (PO) 1,740,682 105 Total 2,806,510 110 IT Fund Purchase Order (PO) 303,918 110 Total 303,918 115 Fleet Fund Purchase Order (PO) 86,394 115 Total 86,394 116 Facilities Fund Purchase Order (PO) 3,120 116 Total 3,120 200 Gas Tax Fund Purchase Order (PO) 17,503 200 Total 17,503 201 SB 1 Fund Purchase Order (PO) 46,488 201 Total 46,488 220 Measure A Fund CIP/Multi-Year CIP/Other 94,920 Purchase Order (PO) 338,330 220 Total 433,250 301 Grant Fund Grants 1,475,343 Purchase Order (PO) 1,267,821 301 Total 2,743,164 310 TUMF Fund CIP/Multi-Year CIP/Other 577,403 Purchase Order (PO) 1,571,529 310 Total 2,148,931 320 Capital Project Fund CIP/Multi-Year CIP/Other 1,965,462 Purchase Order (PO) 457,687 320 Total 2,423,150 410 Scott Road RBBD CIP/Multi-Year CIP/Other 601,794 410 Total 601,794 10.6 Packet Pg. 110 City of Menifee Staff Report Budget Carryovers to Fiscal Year 2020/21 October 21, 2020 Page 4 of 7 Fund Fund Name Expenditure Type Expenditure Amount 415 Menifee Valley RBBD CIP/Multi-Year CIP/Other 5,770,741 Purchase Order (PO) 107,439 415 Total 5,878,180 460 CSA 86 Fund Purchase Order (PO) 10,376 460 Total 10,376 481 CDBG Fund Grants 607,116 Purchase Order (PO) 12,830 481 Total 619,946 507 DIF 17- Facilities CIP/Multi-Year CIP/Other 829,114 Fund Purchase Order (PO) 71,434 507 Total 900,548 509 DIF 17- Roads Fund CIP/Multi-Year CIP/Other 2,138,464 Purchase Order (PO) 1,777,025 509 Total 3,915,489 510 DIF 17- Signals Fund CIP/Multi-Year CIP/Other 329,816 Purchase Order (PO) 538,943 510 Total 868,759 511 DIF 17- Parks Fund CIP/Multi-Year CIP/Other 1,850,000 511 Total 1,850,000 512 DIF 17- Trails Fund CIP/Multi-Year CIP/Other 993,958 Purchase Order (PO) 11,526 512 Total 1,005,484 526 DIF Citywide- Circulation CIP/Multi-Year CIP/Other 1,723,638 526 Total 1,723,638 527 DIF Citywide- Storm Drain Facilities Purchase Order (PO) 12,455 527 Total 12,455 10.6 Packet Pg. 111 City of Menifee Staff Report Budget Carryovers to Fiscal Year 2020/21 October 21, 2020 Page 5 of 7 Fund Fund Name Expenditure Type Expenditure Amount Grand Total $29,728,837 Fund Fund Name Revenue Type Revenue Amount 301 Grant Fund Grant $3,323,756 481 CDBG Fund Grant 607,116 Grand Total $3,930,872 Of the proposed carryover budget from Fiscal Year 2019/20 to Fiscal Year 2020/21, a majority is represented by Multi-Year CIP Project, approximately $20,336,352. The table below provides a summary of the Multi-Year CIP Projects: Project Number Expenditure Type Expenditure Total CIP 13-03 Bradley Bridge Project CIP/Multi-Year CIP/Other $332,699 Purchase Order (PO) 39,436 CIP 13-03 Bradley Bridge Project Total 372,135 CIP 13-04 Holland Road Overpass CIP/Multi-Year CIP/Other 11,106,790 Purchase Order (PO) 107,439 CIP 13-04 Holland Road Overpass Total 11,214,230 CIP 14-03 Scott Rd/I-215 Interchange Improvements Purchase Order (PO) 1,737,589 CIP 14-03 Scott Rd/I-215 Interchange Improvements Total 1,737,589 CIP 16-07 HSIP Traffic Signalization Project CIP/Multi-Year CIP/Other 15,387 Purchase Order (PO) 92,587 CIP 16-07 HSIP Traffic Signalization Project Total 107,974 CIP 19-15 Central Park Amphitheater Project CIP/Multi-Year CIP/Other 25,415 Purchase Order (PO) 33,616 CIP 19-15 Central Park Amphitheater Project Total 59,031 10.6 Packet Pg. 112 City of Menifee Staff Report Budget Carryovers to Fiscal Year 2020/21 October 21, 2020 Page 6 of 7 CIP 19-16 Lazy Creek Campus Improvements CIP/Multi-Year CIP/Other 1,380,905 Purchase Order (PO) 33,888 CIP 19-16 Lazy Creek Campus Improvements Total 1,414,793 CIP 20-01 Scott Road/Bundy Canyon Road Widening CIP/Multi-Year CIP/Other 627,197 Purchase Order (PO) 1,571,529 CIP 20-01 Scott Road/Bundy Canyon Road Widening Total 2,198,725 CIP 20-04 Paloma Wash Trail Improvements CIP/Multi-Year CIP/Other 846,605 Grants 499,765 Purchase Order (PO) 5,401 CIP 20-04 Paloma Wash Trail Improvements Total 1,351,771 CIP 20-05 Garbani Road/I-215 Interchange CIP/Multi-Year CIP/Other 131,317 CIP 20-05 Garbani Road/I-215 Interchange Total 131,317 CIP 20-13 Paloma Wash Pedestrian Bridge CIP/Multi-Year CIP/Other 2,450 Purchase Order (PO) 6,125 CIP 20-13 Paloma Wash Pedestrian Bridge Total 8,575 Citywide Signal Communications Grants 83,207 Purchase Order (PO) 761,323 Citywide Signal Communications Total 844,529 CS010 Evans Park Design/Construction CIP/Multi-Year CIP/Other 350,000 CS010 Evans Park Design/Construction Total 350,000 HSIP Cycle 9 Median Grant CIP/Multi-Year CIP/Other 52,105 Grants 462,870 Purchase Order (PO) 30,707 HSIP Cycle 9 Median Grant Total 545,682 Grand Total $20,336,352 10.6 Packet Pg. 113 City of Menifee Staff Report Budget Carryovers to Fiscal Year 2020/21 October 21, 2020 Page 7 of 7 FISCAL IMPACT Total appropriations for the FY 2020/21 operating, grant and capital budget will increase by $29,728,837. Total revenues will increase by $3,930,872. These items were previously authorized during the FY 2019/20 budget year and were not fully expended or received. The authorization by City Council to carry over these appropriations will allow capital projects, grants and outstanding operating purchase orders to continue without interruption. ATTACHMENTS 1. Attachment A - PO Rollovers 2. Attachment B - Grant Rollovers 3. Attachment C- CIP Budget Rollovers 10.6 Packet Pg. 114 Attachment A: Budgets Rolled for Purchase Orders (POs) Fund Vendor Description Amount GENERAL FUND 3HM ENTERTAINMENT FY19/20 MUSIC & ARTS FESTIVAL (BOOKING & MNGT. SVCS)$4,700 GENERAL FUND 3HM ENTERTAINMENT FY19/20 MUSIC & ARTS FESTIVAL (STAGE RENTAL SVCS)12,456 GENERAL FUND ADAMSON POLICE PRODUCTS BALLISTIC HELMETS (MENIFEE PD)19,295 GENERAL FUND ADAMSON POLICE PRODUCTS GAS MUNITIONS (MENIFEE PD)3,100 GENERAL FUND ADLERHORST INTERNATIONAL LLC K-9 TRAINING (MENIFEE PD)11,000 GENERAL FUND ADLERHORST INTERNATIONAL LLC POLICE SERVICE DOG (K-9) (MENIFEE PD)12,234 GENERAL FUND AXON ENTERPRISE, INC BODY WORK CAMERAS AND TASERS 61,922 GENERAL FUND COFFEY GLOBAL LLC fy19/20 MENIFEE MUSIC & ARTS FESTIVAL (MUSIC ACT)3,000 GENERAL FUND DIAMOND ENVIRONMENTAL SVC FY2019/20 MUSIC & ARTS FESTIVAL (RESTROOMS/FENCING)5,792 GENERAL FUND DMC DOCUMENT SCANNING SERVICES SERVICES 79,136 GENERAL FUND FEHR & PEERS CEQA TRANSPORTATION UPDATE FOR SB 743 SERVICES 5,810 GENERAL FUND GALLS, LLC GALLS EQUIPMENT DETECTIVE BUREAU (MENIFEE PD)2,689 GENERAL FUND GALLS, LLC REDMAN TRAINING SUIT (MENIFEE PD)2,063 GENERAL FUND HELIXSTORM PROFESSIONAL IT SUPPORT & TECHNOLOGY UPGRADES SVCS 4,619 GENERAL FUND HELIXSTORM PALO ALTO TRAPS (CYBERSECURITY) FOR MENIFEE PD 11,079 GENERAL FUND HELIXSTORM SIEM AND SOC SOLUTION -1 YEAR (CITY HALL)28,400 GENERAL FUND HELIXSTORM SIEM AND SOC SOLUTION -1 YEAR (MENIFEE PD)9,000 GENERAL FUND IMPACT MENIFEE FACILITY RENTAL FOR MENIFEE PD TRAINING 325 GENERAL FUND INLAND ELECTRIC INC 600 AMP AUTOMATIC TRANSFER SWITCH (MENIFEE PD HQ)27,897 GENERAL FUND KIMLEY-HORN AND ASSOCIATES, INC.CEQA REVIEW SERVICES (CIP PROGRAM)9,288 GENERAL FUND KIMLEY-HORN AND ASSOCIATES, INC.HOUSING ELEMENT UPDATE 321,440 GENERAL FUND KOSMONT COMPANIES INITIAL HOTEL MARKET AND SITE ANALYSIS 601 GENERAL FUND L.N. CURTIS & SONS (GAS MASKS) FIRST RESPONDER KIT (MENIFEE PD)19,629 GENERAL FUND LEXISNEXIS COPLOGIC, SOLUTIONS INC MENIFEE PD SOFTWARE 17,280 GENERAL FUND MATTHEW FAGAN CONSULTING, INC CEQA/ENVIRONMENTAL DOCUMENT (MOTTE COUNTRY PLAZA)15,800 GENERAL FUND MEYERS RESEARCH LLC INDUSTRIAL DEMAND STUDY 7,000 GENERAL FUND MCR MEDICAL SUPPLY EMERGENCY BLANKETS (MENIFEE PD)179 GENERAL FUND MOTOPORT USA MOTOPORT UNIFORM (MENIFEE PD)4,161 GENERAL FUND MULLIN360 LLC NET GROWTH DEMAND ANALYSIS (AUTOMOBILE RETAIL)45,000 GENERAL FUND NATIONAL AUTO FLEET GROUP 2020 FORD F-150 (CODE VEHICLE)42,946 GENERAL FUND P.L. PERRIN & ASSOCIATES MENIFEE PD COMPREHENSIVE POLYGRAPH SERVICES 4,160 GENERAL FUND PACIFIC ALARM SERVICE CIP 19-18: MENIFEE PD HQ (ACCESS CONTROL IMPROVEMENTS)18,580 GENERAL FUND PARMALEE TN, LLC FY 19/20 MENIFEE MUSIC & ARTS FESTIVAL (MAIN MUSIC ACT)11,750 GENERAL FUND PINNACLE TRAINING SYSTEMS MENIFEE PD HEALTH/WELLNESS TRAINING 3,630 GENERAL FUND PROFORCE LAW ENFORCEMENT PATROL RIFLES (MENIFEE PD)10,260 GENERAL FUND PROFORCE LAW ENFORCEMENT PROFORCE WEAPONS (MENIFEE PD)7,237 GENERAL FUND PROFORCE LAW ENFORCEMENT PROFORCE-LIGHTS, OPTICS, MAGS(MENIFEE PD)3,600 GENERAL FUND PUBLIC ADVERTISING AGENCY INC MENIFEE MARKETING BOOK DESIGN 4,500 GENERAL FUND PVP COMMUNICATIONS HELMET COMMUNICATIONS KIT (MENIFEE PD)6,524 GENERAL FUND PVP COMMUNICATIONS WIRELESS MOTOR KIT (MENIFEE PD)3,778 GENERAL FUND RBF/MICHAEL BAKER CORPORATION TECHNICAL STUDIES/IS-MND: NEWPORT PINTE PROJECT 83,975 GENERAL FUND RINCON CONSULTANTS, INC TECHNICAL STUDIES/IS-MND: THE LINDENBERGER SUBDIVISION 9,425 GENERAL FUND RIVERSIDE UNIVERSITY HEALTH, SYSTEM, PUBLIC HEALTH MENIFEE ATP (PROFESSIONAL SERVICES AGREEEMENT)11,851 GENERAL FUND ROSELAND PAINTING FIRE STATION NO. 68 & 76 PAINTING IMPROVEMENTS 17,500 GENERAL FUND RSM DESIGN CITYWIDE SIGNAGE PROGRAM- PHASE I, II & III (CONCEPT DESIGN)68,288 GENERAL FUND SAN DIEGO POLICE EQUIPMENT, COMPANY, INC ACTIVE SHOOTER KITS (MENIFEE PD)32,495 GENERAL FUND SEARLE CREATIVE GROUP LLC ON-CALL OUTREACH SUPPORT SERVICES (COVID-19)21,342 GENERAL FUND SUSAN SAXE-CLIFFORD MENIFEE PD PSYCHOLOGICAL EVALUATION & RELATED SERVICES 57,575 GENERAL FUND VIDEO APPROACH ON-CALL OUTREACH SUPPORT SERVICES (COVID-19)20,311 GENERAL FUND WESTERN A/V CITY HALL A/V IMPROVEMENTS (RTS & VIDEO DISTRIBUTION)43,968 GENERAL FUND (100) TOTAL 1,228,587 MEASURE DD FUND ALL AMERICAN ASPHALT CIP 20-02 ETHANAC RD/SHERMAN RD RESURFACING PROJECT 6,756 MEASURE DD FUND BICYCLE PATROL OUTFITTERS, LLC PATROL BICYCLES & PATROL BICYCLE GEAR (MENIFEE PD)11,235 MEASURE DD FUND DATA TICKET, INC MANUAL PARKING CITATIONS (MENIFEE PD)3,350 MEASURE DD FUND INFRASTRUCTURE ENGINEERING CORPORATION CIP 19-06 (SCOTT RD/MURRIETA RD) TRAFFIC SIGNAL LABOR COMPLIANCE SVCS 11,610 MEASURE DD FUND KIMLEY-HORN AND ASSOCIATES, INC.CIP PROGRAM: PROF SVC AGT FOR CEQA REVIEW SERVICES 6,988 10.6.a Packet Pg. 115 Attachment: Attachment A - PO Rollovers (2699 : Budget Carryovers to Fiscal Year 2020/21) Attachment A: Budgets Rolled for Purchase Orders (POs) Fund Vendor Description Amount MEASURE DD FUND LEIGHTON CONSULTING, INC.CIP 20-02 ETHANAC RD/SHERMAN RD RESURFACING PROJECT MATERIALS TESTING 14,627 MEASURE DD FUND LYNN PEAVEY COMPANY FORENSIC & CRIME SCENE SUPPLIES (MENIFEE PD)834 MEASURE DD FUND MTGL, INC CIP 20-10 ( ANDALUSIA/BELCANTO GRIND & OVERLAY) MATERIALS TESTING SERVICES 19,086 MEASURE DD FUND NATIONAL AUTO FLEET GROUP 2020 FORD TRANSIT CARGO VAN T150 (MENIFEE PD)74,961 MEASURE DD FUND R.J. NOBLE COMPANY CIP 19-06 SCOTT RD/MURRIETA RD TRAFFIC SIG & INT IMPROVEMENS PROJECT 181,720 MEASURE DD FUND RIVERSIDE COUNTY, PURCHASING-SUPPLY TRACTOR DRAWN AERIAL FIRE APPARATUS 1,307,912 MEASURE DD FUND ROY ALLAN SLURRY SEAL, INC PMP 20-01: ARTERIAL ROADS RESURFACING PROJECT 53,062 MEASURE DD FUND SIRCHIE FARADY BAGS, SCREENS, CSI SUPPLIES (MENIFEE PD)2,671 MEASURE DD FUND STC TRAFFIC, INC.CIP 19-03 ANTELOPE ROAD RAISED SAFETY MEDIANS ENGINEERING DESIGN SERVICES 6,325 MEASURE DD FUND WALLACE & ASSOCIATES CIP 20-02 (ETHANAC ROAD & SHERMAN ROAD) LABOR COMPLIANCE SERVICES 9,825 MEASURE DD FUND WALLACE & ASSOCIATES CIP 20-10 ( ANDALUSIA AND BELCANTO GRIND & OVERLAY) LABOR COMPLIANCE SERVICE 4,848 MEASURE DD FUND WEST COAST LIGHTS & SIRENS INC GUN RACK INSTALLATION ON U.C VEHICLES (MENIFEE PD)5,158 MEASURE DD FUND WEST COAST LIGHTS & SIRENS INC RETROFIT UNDERCOVER VEHICLE #1 (MENIFEE PD)5,051 MEASURE DD FUND WEST COAST LIGHTS & SIRENS INC RETROFIT UNDERCOVER VEHICLE #2 (MENIFEE PD)5,051 MEASURE DD FUND WEST COAST LIGHTS & SIRENS INC RETROFIT UNDERCOVER VEHICLE #3 (MENIFEE PD)4,562 MEASURE DD FUND WEST COAST LIGHTS & SIRENS INC RETROFIT UNDERCOVER VEHICLE #4 (MENIFEE PD)5,051 MEASURE DD FUND (105) TOTAL 1,740,682 IT FUND CALLYO MOBILE INVESTIGATIVE SOFTWARE AND PHONE SERVICE 2,088 IT FUND CROSSROADS SOFTWARE (MENIFEE PD)CROSSROADS SOFTWARE (MENIFEE PD)31,500 IT FUND FARO TECHNOLOGIES, INC FARO SOFTWARE FOR FORENSIC SCENES AND SECURITY PLANNING (MENIFEE PD) 500 IT FUND HELIXSTORM TMC PROJECT SWITCH 5,552 IT FUND IK CONSULTING, LLC ACCELA CONFIGURATION CONSULTING SERVICES 92,295 IT FUND LANGUAGE LINE SERVICES, INC COMPREHENSIVE INTERPRETATION SERVICES 3,500 IT FUND LEADSONLINE LLC ELECTRONIC REPORTING & CRIMINAL INVESTIGATION SERVICES 5,114 IT FUND LEHR VIGILANT SOLUTIONS INVESTIGATIVE DATA PLATFORM 11,250 IT FUND MC CAIN, INC.TRANSPARITY TRAFFIC MANAGEMENT SYSTEM(TMS) 71,800 IT FUND NEARMAP US INC.ARCGIS INTEGRATION RENEWAL 6,000 IT FUND PRIME GOVERNMENT SOLUTION INC, PRIMEGOV AGENDA MANAGEMENT SOFTWARE - PRIMEGOV 40,000 IT FUND THOMSON REUTERS- WEST COLLECTION OF PUBLIC RECORDS INFORMATION SERVICES (CLEAR)(MENIFEE PD) 24,421 IT FUND TPX COMMUNICATIONS MENIFEE PD TPX/MSX SYSTEM (INTERNET BACK UP SERVICES)9,898 IT FUND (110) Total 303,918 FLEET FUND DOWNTOWN FORD SALES PUBLIC WORKS FACILITIES VEHICLE 38,579 FLEET FUND DOWNTOWN FORD SALES PW FLEET SERVICE TRUCK 39,393 FLEET FUND JOHNSON EQUIPMENT COMPANY VEHICLE # 230 SAFETY LIGHTS AND EQUIPMENT INSTALLATION 4,498 FLEET FUND JOHNSON EQUIPMENT COMPANY VEHICLE # 241 SAFETY LIGHTS AND EQUIPMENT INSTALLATION 3,925 FLEET FUND (115) Total 86,394 FACLITIES FUND MERCHANTS BUILDING MAINTENANCE MENIFEE CITY HALL DEEP CLEANING JANITORIAL SERVICES 2,125 FACLITIES FUND ROSELAND PAINTING FIRE STATION NO. 68 & 76 PAINTING IMPROVEMENTS 995 FACILTIES FUND (116) Total 3,120 GAS TAX JOHNSON EQUIPMENT COMPANY SAFETY LIGHTS AND EQUIPMENT FOR PW TRUCK 3,384 GAS TAX MYERS & SONS HI-WAY SAFETY ROMOLAND STREET NAME BLADE REPLACEMENTS 14,119 GAS TAX (200) Total 17,503 SB1 FUND ALL AMERICAN ASPHALT CIP 20-02 ETHANAC ROAD & SHERMAN ROAD STREET RESURFACING PROJECT 41,050 SB1 FUND WALLACE & ASSOCIATES CIP 20-03 (GOETZ ROAD OVERLAY PROJECT) LABOR COMPLIANCE SERVICES 5,438 SB1 FUND (201) Total 46,488 MEASURE A FUND R.J. NOBLE COMPANY CIP 19-06 SCOTT ROAD AND MURRIETA ROAD TRAFFIC SIG & INT PROJECT 338,330 MEASURE A FUND (220) Total 338,330 GRANT FUND ANSER ADVISORY, LLC CIP 16-07 CITYWIDE TRAFFIC SIGNAL COMMUNICATIONS (WEST) - CONST MANAGEMENT SVCS 58,117 GRANT FUND ANSER ADVISORY, LLC CIP 17-05 CITYWIDE ADA AND PEDESTRIAN SAFETY IMPS - CONSTRUCTION ENGINEERING SVC 29,991 10.6.a Packet Pg. 116 Attachment: Attachment A - PO Rollovers (2699 : Budget Carryovers to Fiscal Year 2020/21) Attachment A: Budgets Rolled for Purchase Orders (POs) Fund Vendor Description Amount GRANT FUND DBX, INC.CIP 17-05 CITYWIDE ADA AND PEDESTRIAN SAFETY IMPROVEMENTS PROJECT 249,163 GRANT FUND ELECNOR BELCO ELECTRIC, INC CIP 16-07 CITTYWIDE TRAFFIC SIGNAL COMMUNICATIONS (WEST)412,700 GRANT FUND ELECNOR BELCO ELECTRIC, INC CIP 16-08 CITYWIDE TRAFFIC SIGNAL COMMUNICATIONS (EAST)227,171 GRANT FUND KIMLEY-HORN AND ASSOCIATES, INC.HOUSING ELEMENT UPDATE 170,000 GRANT FUND KTU+A CITY OF MENIFEE ACTIVE TRANSPORTATION PLAN (ATP)89,652 GRANT FUND LOCAL GOVERNMENT COMMISSION ATP PROJECT & GRANT MANAGEMENT SERVICES 6,645 GRANT FUND STC TRAFFIC, INC.CIP 19-03 ANTELOPE ROAD RAISED SAFETY MEDIANS ENGINEERING DESIGN SERVICES 24,382 GRANT FUND (301) Total 1,267,821 TUMF FUND CIVILPROS CIP 20-01 SCOTT ROAD/BUNDY CANYON ROAD WIDENING PROJECT ENGINEERING SVCS 1,571,529 TUMF FUND (310) Total 1,571,529 CAPITAL PROJECT FUND ANSER ADVISORY, LLC CIP 16-07 CITYWIDE TRAFFIC SIGNAL COMMUNICATIONS (WEST) CONST MANAGEMENT SVCS 36,133 CAPITAL PROJECT FUND ANSER ADVISORY, LLC CIP 17-05 CITYWIDE ADA AND PEDESTRIAN SAFETY IMPS - CONSTRUCTION ENGINEERING SVCS 30,645 CAPITAL PROJECT FUND DBX, INC.CIP 20-06 & 20-07(TRAFFIC SIGNAL MENIFEE/HOLLAND&MENIFEE/CAMINO CRISTAL) PROJECT 76,788 CAPITAL PROJECT FUND DHS CONSULTING, INC.CIP 16-08 CITYWIDE TRAFFIC SIGNAL COMMUNICATION (EAST) CONSTRUCTION MGMT SVCS 14,155 CAPITAL PROJECT FUND ELECNOR BELCO ELECTRIC, INC CIP 16-08 CITYWIDE TRAFFIC SIGNAL COMMUNICATIONS (EAST) PROJECT 7,099 CAPITAL PROJECT FUND IDS GROUP, INC.CIP 19-15 CENTRAL PARK (NEIL WINTER AMPHITHEATER) DESIGN/ARCHITECTURAL SERVICES 33,616 CAPITAL PROJECT FUND IDS GROUP, INC.CIP 19-16 LAZY CREEK RECREATION CENTER DESIGN/ARCHITECTURAL SERVICES 33,888 CAPITAL PROJECT FUND INFRASTRUCTURE ENGINEERING, CORPORATION CIP 20-06 & 20-07 (TRAFFIC SIG MENIFEE/HOLLAND&MENIFEE/CAMINO CRISTAL) LABOR COMPLIANCE SVCS 11,278 CAPITAL PROJECT FUND KIMLEY-HORN AND ASSOCIATES, INC.CEQA REVIEW SERVICES (CIP PROGRAM)1,473 CAPITAL PROJECT FUND MTGL, INC PMP 20-01 (ARTERIAL ROAD RESURFACING) MATERIALS TESTING SERVICES 10,000 CAPITAL PROJECT FUND RICK ENGINEERING MASTER DRAINAGE PLAN RFP 2019-18 130,974 CAPITAL PROJECT FUND STC TRAFFIC, INC.CIP 16-07 TRAFFIC SIGNAL INTERCONNECT (WEST) CONSTRUCTION ENGINEERING SUPPORT SVCS 46,437 CAPITAL PROJECT FUND STC TRAFFIC, INC.CIP 16-08 TRAFFIC SIGNAL CONSTRUCTION ENGINEERING SUPPORT SVCS 23,206 CAPITAL PROJECT FUND WALLACE & ASSOCIATES PMP 20-01 (ARTERIAL ROAD RESURFACING) LABOR COMPLIANCE SERVICES 1,996 CAPITAL PROJECT FUND (320) Total 457,687 MENIFEE VALLEY RBBD T.Y. LIN INTERNATIONAL CIP 13-03 HOLLAND OVERPASS PROJECT ENVIRO/CIVIL ENG DSGN SVCS 107,439 MENIFEE VALLEY RBBD FUND (415) Total 107,439 CSA 86 AMERICAN ASPHALT SOUTH, INC.PMP 20-02 QUAIL VALLEY STREET RESURFACING PROJECT 10,376 CSA 86 FUND (460) Total 10,376 CDBG FUND K & A ENGINEERING, INC.CIP 20-02 ADAMS AVE & 1ST ST DESIGN SERVICES FOR CIP 20-02 8,580 CDBG FUND RICK ENGINEERING CIP 20-02 ADAMS AVE & 1ST ST SURVEYING SERVICES 4,250 CDBG FUND (481) Total 12,830 DIF 17- PUBLIC FACILITIES PACIFIC ALARM SERVICE CIP 19-10 MENIFEE CITY HALL PARKING LOT SURVEILLANCE CAMERAS 59,223 DIF 17- PUBLIC FACILITIES PACIFIC ALARM SERVICE CIP 19-18 MENIFEE PD HQ (ACCESS CONTROL IMPROVEMENTS)4,131 DIF 17- PUBLIC FACILITIES PARRON-HALL CORPORATION CIP 19-18 MENIFEE PD HEADQUARTERS (FURNITURE & INSTALLATION SERVICES) 8,080 DIF 17- PUBLIC FACILITIES RIVERSIDE COUNTY, TLMA ADMINISTRATION FY17/18 SCOTT/I-215 INTERCHARGE IMPROVEMENTS 1,737,589 DIF 17- PUBLIC FACILITIES FUND (507) Total 1,809,023 DIF 17- ROADS NV5 INC CIP 13-04 BRADLEY ROAD BRIDGE ENGINEERING DESIGN SVCS 39,436 DIF 17- ROADS FUND (509) Total 39,436 DIF 17- SIGNALS DBX, INC.CIP 20-06 & 20-07(TRAFFIC SIG MENIFEE/HOLLAND&MENIFEE/CAMINO CRISTAL PROJECT 495,051 DIF 17- SIGNALS ELECNOR BELCO ELECTRIC, INC CIP 16-08 CITYWIDE TRAFFIC SIGNAL COMMUNICATIONS (EAST)28,892 DIF 17- SIGNALS PECHANGA BAND OF LUISENO, MISSION INDIANS CIP 19-06 TRIBAL MONITORING SERVICES (PECHANGA TRIBE)15,000 10.6.a Packet Pg. 117 Attachment: Attachment A - PO Rollovers (2699 : Budget Carryovers to Fiscal Year 2020/21) Attachment A: Budgets Rolled for Purchase Orders (POs) Fund Vendor Description Amount DIF 17- SIGNALS FUND (510) Total 538,943 DIF 17- TRAILS EASTERN MUNICIPAL WATER DIST.RECYCLED WATER CANDIDACY AND IRRIGATION INSPECTION DEPOSIT FOR PALOMA WASH TRAIL 3,400 DIF 17- TRAILS KOA CORPORATION PROFESSIONAL SERVICES AGREEMENT FOR SURVEY AND DESIGN SVC 2,001 DIF 17- TRAILS T.Y. LIN INTERNATIONAL CIP 20-13 PALOMA WASH PEDESTRIAN BRIDGE PROJECT (DESIGN OPTION STUDY) 6,125 DIF 17- TRAILS FUND (512) Total 11,526 DIF CITYWIDE STORM DRAIN FACILITIES RICK ENGINEERING MASTER DRAINAGE PLAN 12,455 DIF CITYWIDE STORM DRAIN FACILITIES (527) Total 12,455 Grand Total $9,604,086 10.6.a Packet Pg. 118 Attachment: Attachment A - PO Rollovers (2699 : Budget Carryovers to Fiscal Year 2020/21) Attachment B: Budgets Rolled for Grants Grant Category Account #Description Expenditures Revenues SHSP Grant 301-4114-52421 SHSP Grant $6,975 301-3833 12,346 SHSP Grant Total 6,975 12,346 2020 Census Outreach Grant 301-4330-52213 2020 Census Outreach Grant 15,299 301-3864 15,474 2020 Census Outreach Grant Total 15,299 15,474 SB2 Grant - Accessory Dwelling 301-4330-52836 SB2 Grant - Accessory Dwelling 60,000 301-3739 60,000 SB2 Grant - Accessory Dwelling Total 60,000 60,000 SB2 Grant - Obj. Development Standards 301-4330-52837 SB2 Grant - Obj. Development Standards 80,000 301-3739 80,000 SB2 Grant - Obj. Development Standards Total 80,000 80,000 SB2 Grant - Housing Element Update 301-3739 SB2 Grant - Housing Element Update 170,000 SB2 Grant - Obj. Development Standards Total 170,000 CEDS Grant 301-3826 CEDS Grant 32,769 CEDS Grant Total 32,769 Beverage Container Grant 301-4550-52420 Beverage Container Grant 22,415 Beverage Container Grant Total 22,415 HSIP 8 - City Pedestrian Safety Imp.301-4551-58055 HSIP 8 - City Pedestrian Safety Imp.10,000 301-3734 755,000 HSIP 8 - City Pedestrian Safety Imp. Total 10,000 755,000 Sustainable Communities Grant 301-4551-52831 Sustainable Communities Grant 32,405 301-3825 156,598 Sustainable Communities Grant Total 32,405 156,598 Citywide Signal Communications 301-4555-58046 Citywide Signal Communications 83,207 301-2858 813,526 Citywide Signal Communications Total 83,207 813,526 CIP 20-11 Scott Rd/Menifee Rd Missing Sidewalk 301-4555-58063 CIP 20-11 Scott Rd/Menifee Rd Missing Sidewalk 183,263 301-3861 183,263 CIP 20-11 Scott Rd/Menifee Rd Missing Sidewalk Total 183,263 183,263 CIP 20-04 Paloma Wash Trail Improvements 301-4555-58086 CIP 20-04 Paloma Wash Trail Improvements 499,765 499,765 CIP 20-04 Paloma Wash Trail Improvements Total 499,765 499,765 HSIP Cycle 9 Median Grant 301-4555-58094 HSIP Cycle 9 Median Grant 462,870 301-3862 525,870 HSIP Cycle 9 Median Grant Total 462,870 525,870 US DOJ Bulletproof Vest Partnership Grant 301-4911-52834 US DOJ Bulletproof Vest Partnership Grnt 19,145 19,145 US DOJ Bulletproof Vest Partnership Grant Total 19,145 19,145 CDBG (PY2018/19)481-1819-51600 CDBG (PY2018/19)1,245 1,245 CDBG (PY2018/19) Total 1,245 1,245 CDBG (PY2019/20)481-1920-51600 CDBG (PY2019/20)599 481-1920-58014 CDBG (PY2019/20)46,037 481-1920-58043 CDBG (PY2019/20)33 481-1920-58066 CDBG (PY2019/20)254,072 300,741 CDBG (PY2019/20) Total 300,741 300,741 CDBG- CV (Round 1)481-1920-57100 CDBG- CV (Round 1)150,000 481-1920-57105 CDBG- CV (Round 1)100,000 481-1920-57110 CDBG- CV (Round 1)29,112 10.6.b Packet Pg. 119 Attachment: Attachment B - Grant Rollovers [Revision 1] (2699 : Budget Carryovers to Fiscal Year 2020/21) Attachment B: Budgets Rolled for Grants Grant Category Account #Description Expenditures Revenues 481-1920-57115 CDBG- CV (Round 1)26,018 305,130 CDBG- CV (Round 1) Total 305,130 305,130 $2,082,460 $3,930,872 10.6.b Packet Pg. 120 Attachment: Attachment B - Grant Rollovers [Revision 1] (2699 : Budget Carryovers to Fiscal Year 2020/21) Attachment C: Budgets Rolled For Capital Projects (Other, CIP, and Multi-Year CIP Projects/Programs) Category Project Account Expenditures IT Cybersecurity Improvements 100-4221-53155 61,185 IT Cybersecurity Improvements Total 61,185 Menifee PD Capital Outlays 105-4911-53155 395,000 Menifee PD Capital Outlay Total 395,000 Other Total 456,185 CIP Project CIP 16-13 Maintenance & Operations Center (MOC)507-4555-58050 366,592 CIP 16-13 Maintenance & Operations Center (MOC) Total 366,592 CIP 18-07 KC Campus Improvements 507-4555-58065 137,979 CIP 18-07 KC Campus Improvements Total 137,979 CS004 Sun City Blvd Street Medians 320-4555-58034 50,000 CS004 Sun City Blvd Street Medians Total 50,000 CS023 Trails Connectivity & Enhancements 512-4555-58036 79,903 CS023 Trails Connectivity & Enhancements Total 79,903 CS032 Permanent Park Restrooms 511-4555-58038 100,000 CS032 Permanent Park Restrooms Total 100,000 Park Improvement Projects 511-4555-58024 100,000 Park Improvement Projects Total 100,000 School Sidewalk Missing Links 105-4555-58063 228,090 School Sidewalk Missing Links Total 228,090 CIP 19-06 Murrieta Road/Scott Road Traffic Signal 105-4555-58071 140,654 220-4555-58071 94,920 320-4555-58071 81,270 510-4555-58071 75,446 CIP 19-06 Murrieta Road/Scott Road Traffic Signal Total 392,290 CIP 19-15 Central Park Amphitheater Project 511-4555-58079 400,000 CIP 19-15 Central Park Amphitheater Project Total 400,000 CIP 19-10 City Hall Relocation 507-4555-58075 24,543 CIP 19-10 City Hall Relocation Total 24,543 CIP 19-09 EOC Relocation 507-4555-58077 200,001 CIP 19-09 EOC Relocation Total 200,001 CIP 19-13 Calle Tomas Right of Way Improvements 512-4555-58080 65,000 CIP 19-13 Calle Tomas Right of Way Improvements Total 65,000 CIP 19-18 Menifee Police Headquarters 100-4555-58090 39,968 CIP 19-18 Menifee Police Headquarters Total 39,968 CIP 20-06 Menifee/Holland Traffic Signal 320-4555-58088 53,199 510-4555-58088 6,133 CIP 20-06 Menifee/Holland Traffic Signal Total 59,332 CIP 20-07 Menifee/Camino Cristal Traffic Signal 320-4555-58089 60,609 510-4555-58089 6,440 CIP 20-07 Menifee/Camino Cristal Traffic Signal Total 67,049 Master Drainage Plan 320-4555-58091 4,490 Master Drainage Plan Total 4,490 CIP 20-09 Sports Field Lighting 511-4555-58092 400,000 CIP 20-09 Sports Field Lighting Total 400,000 CIP Project Total 2,715,235 Multi-Year CIP Project CIP 13-03 Bradley Bridge Project 105-4555-58000 249,979 509-4555-58000 82,720 CIP 13-03 Bradley Bridge Project Total 332,699 CIP 13-04 Holland Road Overpass 310-4555-58021 552,000 320-4555-58021 762,870 415-4555-58021 5,770,741 509-4555-58021 2,055,744 Other 10.6.c Packet Pg. 121 Attachment: Attachment C- CIP Budget Rollovers [Revision 2] (2699 : Budget Carryovers to Fiscal Year 2020/21) Attachment C: Budgets Rolled For Capital Projects (Other, CIP, and Multi-Year CIP Projects/Programs) Category Project Account Expenditures 510-4555-58021 241,797 526-4555-58021 1,723,638 CIP 13-04 Holland Road Overpass Total 11,106,790 CIP 16-07 HSIP Traffic Signalization Project 320-4555-58040 15,387 CIP 16-07 HSIP Traffic Signalization Project Total 15,387 CIP 20-01 Scott Road/Bundy Canyon Road Widening 310-4555-58083 25,403 410-4555-58083 601,794 CIP 20-01 Scott Road/Bundy Canyon Road Widening Total 627,197 CS010 Evans Park Design/Construction 507-4555-58052 100,000 511-4555-58052 250,000 CS010 Evans Park Design/Construction Total 350,000 CIP 19-15 Central Park Amphitheater Project 320-4555-58079 25,415 CIP 19-15 Central Park Amphitheater Project Total 25,415 CIP 19-16 Lazy Creek Campus Improvements 320-4555-58082 780,905 511-4555-58082 600,000 CIP 19-16 Lazy Creek Campus Improvements Total 1,380,905 CIP 20-04 Paloma Wash Trail Improvements 512-4555-58086 846,605 CIP 20-04 Paloma Wash Trail Improvements Total 846,605 CIP 20-05 Garbani Road/I-215 Interchange 320-4555-58087 131,317 CIP 20-05 Garbani Road/I-215 Interchange Total 131,317 HSIP Cycle 9 Median Grant 105-4555-58094 52,105 HSIP Cycle 9 Median Grant Total 52,105 CIP 20-13 Paloma Wash Pedestrian Bridge 512-4555-58098 2,450 CIP 20-13 Paloma Wash Pedestrian Bridge Total 2,450 Multi-Year CIP Project Total 14,870,871 Grand Total 18,042,291 10.6.c Packet Pg. 122 Attachment: Attachment C- CIP Budget Rollovers [Revision 2] (2699 : Budget Carryovers to Fiscal Year 2020/21) CITY OF MENIFEE SUBJECT: Business License Renewal Fee Waiver MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Edna Aguilar, Accounting Technician II REVIEWED BY: Rochelle Clayton, Deputy City Manager APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION Waive the 2021 calendar year business license renewal fee of $35 for businesses physically located within City of Menifee boundaries. DISCUSSION The City of Menifee Business License Ordinance requires that “unless otherwise exempt, every person conducting or carrying on a business” shall secure a business license. The first business license obtained by a business is valid from the approval date through December 31 of each year regardless of the date the license was approved. Business Licenses are renewed annually and are considered delinquent after December 31 of each year. The business license renewal fee of $39 is composed of two separate fees. The $35 fee is a City of Menifee cost recovery fee, meanwhile, the $4 Certified Access Specialist (CASp) fee is a State requirement fee (SB1186 and AB1379), which requires local jurisdictions to collect a $4 fee from new or renewal applications. The purpose of this fee is to increase CASp services and compliance with construction-related accessibility standards in accordance with the building standards for disabled accessibility and cannot be waived by the City. On March 18, 2020, the Menifee City Council adopted Resolution No. 20-869, which officially declared a public health emergency as a response to the unprecedented impact of the Coronavirus Pandemic (COVID-19) to the City of Menifee business community. Over the last few months, the City, along with the rest of the world, has continued to navigate the uncertainties created by COVID-19. Anticipating significant direct impact to the local businesses and economy at large, the Fiscal Year 20/21 budget factored in decreases in nearly all revenues. At the time of budget adoption, recognizing the immediate impact to its local businesses, the business license revenue was budgeted to allow for the temporary waiver of business license renewal fees. 10.7 Packet Pg. 123 City of Menifee Staff Report Business License Renewal Fee Waiver October 21, 2020 Page 2 of 2 As COVID-19 has been an unforeseen and on-going situation, waiving the business license renewal fee is recommended to further assist Menifee based existing businesses during this time. Existing local businesses across the City have continued to struggle adjusting to the impacts of COVID-19, and by waiving the 2021 renewal fee of $35 would demonstrate the City’s support to the local business community. Therefore, staff is recommending the following: • One-time waiver of the $35 business license renewal fee, covering the licensing period of January 1, 2021 through December 31, 2021 for locally based businesses (physically located within city boundaries proper); and • The one-time waiver would not include other applicable regulatory fees, such as the state CASp $4 fee and mandatory NPDES inspections fees. New businesses and/or out-of-City businesses would be subject to the existing license business application fees. Lastly, any applicable penalties would not be waived after the established 60- day grace period (ending February). FISCAL IMPACT The fiscal impact of waiving the $35 renewal fee for in city-based businesses would result in decreased business license revenues of approximately $40,000. However, the adopted FY20/21 budget, factored in anticipated decreased business license revenues to allow for the one-time waiver of the renewal fee. 10.7 Packet Pg. 124 CITY OF MENIFEE SUBJECT: Streetlights Retrofit Project - Western Riverside Council of Government Request MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Imelda Huerta, Senior Management Analyst REVIEWED BY: Jonathan Nicks, Community Services Director APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION Approve the Western Riverside Council of Government’s (WRCOG) request of $159,771 to be funded from the City’s Streetlight Retrofit Project Rebate. DISCUSSION Background - Streetlight LED Retrofit Project Completion On June 25, 2020, the installation services consisting of retrofitting approximately 6,500 streetlights to new LED fixtures and re-tagging of streetlights to a Menifee inventory tag system concluded. The new LED fixtures are substantially more energy efficient, have a longer lifespan than the previous sodium lamps, require less maintenance, and provide additional benefits such as reduced light pollution and improved color perception for residents. Many residents have provided positive feedback to staff regarding the new lights. Request On September 11, 2020, the City received a request via e-mail from the Western Riverside Council of Governments (WRCOG). The request is regarding the Regional Streetlight Program and the rebate that is due to our jurisdiction. Rebate Process • As part of the Streetlight Program development process, WRCOG assessed the projected incentives and rebates each jurisdiction would receive from retrofitting the streetlights purchased from Southern California Edison (SCE) with qualified LED technologies. In 2016, WRCOG estimated that potential LED rebates for the subregion would be about $3.6 million. 10.8 Packet Pg. 125 City of Menifee Staff Report Streetlights Retrofit Project - WRCOG Request October 21, 2020 Page 2 of 5 • In 2017, SCE began to eliminate their LED incentives and rebates. If eliminated, the estimated $3.6 million in rebates for the WRCOG cities would have been lost altogether. • After working with state advocacy groups and the California Public Utilities Commission (CPUC), WRCOG was successful in restoring and securing the original rebates through 2020 on behalf of its 11 participating members. • In 2018, WRCOG was able to modify SCE’s rebate process, which resulted in a significantly larger rebate for our subregion than was originally anticipated. • The LED rebate for the subregion increased from $3.6 million to $5.6 million (approx. 56%). • For our City, WRCOG had estimated in 2016 that the SCE LED rebate would have been approximately $305,748. Today it is $696,469, an increase of more than $390,000. Request & Partnership Based on the e-mail received form WRCOG’s Executive Director, WRCOG initially intended to recoup their program development expenses through a portion of the cost of issuance related to the project financing for the streetlight purchase and LED retrofit. However, due to longer processes, and other unanticipated costs, the entire Program cost increased to approximately $1.4 million, leaving WRCOG to absorb approximately $800,000 in additional costs. Based on the above information, WRCOG, is requesting that the City consider using part of our rebate revenues to reimburse WRCOG for the City’s share of WRCOG’s additional program development costs. The amount requested is $159,771. WRCOG has been an essential partner in this project, as well as other projects. They have assisted staff every step of the way, which has allowed this streetlight acquisition and retrofit project to not only be implemented, but to be successful as well. The administrative support has allowed city staff to complete the financing documents on time, assist with presentations, assist with review of all three (3) project phases with SCE, coordinate fixture orders, delivery, and implementation, and ensure that the acquisition of streetlights was transitioned smoothly. Additionally, WRCOG has assisted staff with various financial documents, including the financing agreements, disbursement forms, agreement addendum(s), and the final acceptance certificate. WRCOG staff also coordinated various meetings with our City and other participating agencies, the bank, SCE, Siemens Mobility, Inc., and California Electric Supply (CES). They have been a key liaison for the City and the noted agencies. Project Shortfall & Savings In addition to the details noted above, there are other items to consider. On April 15, 2020, staff returned to City Council to approve additional funding to address the project escrow shortfall of 10.8 Packet Pg. 126 City of Menifee Staff Report Streetlights Retrofit Project - WRCOG Request October 21, 2020 Page 3 of 5 approximately $100,000. The report noted that the shortfall would be offset this Fiscal Year, as the City is expected to receive a larger than initially estimated rebate from SCE. Staff noted that for Menifee, the 2016 rebate estimate was anticipated to increase over $100,000. Considering WRCOG’s request, the City will still have an increased rebate amount of over $200,000 due to WRCOG’s work on the rebate program, which includes saving the rebate for the City when SCE was phasing them out, as well as increasing the amount to almost $700,000. Overall, the Regional Streetlight Program has provided economic, environmental, and public safety benefits. Our 20-year estimated net savings is $8M. Other Factors to Consider The Certificate of Final Completion and Acceptance of the Streetlight LED Retrofit Installation was signed on August 7,2020. All lights that were accounted for as part of the acquisition process have been retrofitted, however, WRCOG, has provided staff with a list of poles that were not part of the retrofit project, including: • 17 Decorative Poles • 3 Categorized as “Unable to Convert” • 29 Categorized as “TBD” that will be field verified by Public Works (PW) Staff PW staff also analyzed new/recently submitted project/development lighting and confirmed that they are conditioned to be LED. Staff reached out to WRCOG and obtained approximate costs for the City to purchase additional poles from SCE (if needed), as well as fixture costs, and labor cost to install. Please note that the City has approximately 5% of each fixture type stored for future repairs/replacements. Should there be additional poles that the City is able to purchase, the approximate costs are as follows: Additional concrete pole: $ 800.00* Labor Rate per Lamp: $ 59.95** Fixture (22W) ea.: $ 185.00** Fixture (84W) ea.: $ 280.00** Total Per Pole: $1,045.00 (22W) & $1,140.00 (84W) *Please note: SCE has indicated that “newer” poles may cost up to $3,000 **Labor and fixture cost are estimates based on previous costs, new costs will be quoted based on current rates and project scope. Other Cities The ask from WRCOG is equitable among each participating WRCOG member jurisdiction, with the exception of Moreno Valley, who is utilizing another company for their rebate process (SoCal REN). The ask is 45% of the change in the rebate between the 2016 estimate and the estimate used in WRCOG’s calculation to recoup costs. This request is to cover the costs for the development of the streetlight program up to the point that the City closed its streetlight financing deal with Bank of America. Prior to preparing the rebate applications WRCOG estimated the rebate would be $660,795, which was used to calculate WRCOG’s request to the 10.8 Packet Pg. 127 City of Menifee Staff Report Streetlights Retrofit Project - WRCOG Request October 21, 2020 Page 4 of 5 City. For Menifee, this calculation is 45% of $355,047 ($660,795 (increased rebate amount)) minus $305,748 (original estimated rebate amount)), which equals $159,771: Prior Estimated Increased Rebate 660,795$ Original Estimated Rebate 305,748$ Difference 355,047$ WRCOG Request: Difference x 45% 159,771$ WRCOG recognizes that the City’s rebate has increased since WRCOG’s initial calculation to recoup its costs, however, its request remains the same at $159,771 and will not increase. This decision results in the City receiving a rebate of approximately $536,698 after WRCOG has taken its share, if Council approves. Per WRCOG staff, other participating cities, with the noted exception, have agreed to the request. The rebate process will continue once WRCOG receives direction from the City. According to WRCOG’s latest Technical Advisory Committee (TAC) meeting agenda, it is estimated that approximately $4.8M in rebates will be distributed to the jurisdictions, after WRCOG’s reimbursement for additional work: Recommendation Based on this analysis, the City should consider accepting a revised rebate amount of $536,698 and contribute $159,771 to WRCOG for their extra work and development of the program, not only would this align with other participating agencies, but the City would still have sufficient funding based on the added revenues to cover the costs for any additional pole purchases that 10.8 Packet Pg. 128 City of Menifee Staff Report Streetlights Retrofit Project - WRCOG Request October 21, 2020 Page 5 of 5 are needed, as well as offset the additional $100,000 that was appropriated to cover the escrow shortfall. The rebate has been budgeted as revenue in FY 20/21 in the various funds that pay for streetlights, however, the rebate will go to Council for presentation. Additionally, staff met with WRCOG and confirmed that no amendments will be needed to any current agreements or financial documents as the financing amount, price per pole, and cost of issuance are not changing. WRCOG continues to be an effective regional partner by implementing new and innovative Programs. As the Regional Streetlight Program enters the post-retrofit phase, WRCOG will be developing a Smart Cities/Streetlights Plan which will be of use to Menifee given the City’s interest in smart city strategic planning. Additionally, WRCOG will also be developing the Western Riverside County Energy Resiliency Plan, which will identify short- and long-term solutions to maintain power during outages at select critical facilities across the subregion. The City appreciates the longstanding relationship with WRCOG and looks forward to continuing our partnership, along with future opportunities FISCAL IMPACT There is no fiscal impact. A budget adjustment is not needed as staff budgeted $550,000 in this FY’s various streetlight revenue accounts in anticipation of the rebate. ATTACHMENTS 1. Menifee Cash Flows 10.8 Packet Pg. 129 City of Menifee Streetlight System Valuation Assumptions Poles Available for Purchase:6,310 6,310 RCNLD $3,746,782.00 400 Ad Hoc Replacements $333,204.00 Additional Asset Components $78,898.00 $207.40 Tax Neutral Subtotal $4,158,884.00 $1.55 Total Poles Transferred(1) City-owned Lamps for retrofit* Cost Per Pole LED Retrofit Cost per Pole (one time)(2) O&M HPS/LPS (per pole - just in time install) O&M LED only (per pole per month)$0.65 Tax/Other Adjustments $478,639.00 Transition Cost ($32.15/pole)$202,866.50 Financial Model Assumptions Acquisition Price $4,840,389.50 Interest Rate (Acquisition - Taxable)4.30% Poles Available for Retrofit: 6,710 Interest Rate (Retrofit)4.30% Gross Retrofit Cost $1,391,669.48 O&M Inflation/Escalation Rate 3.00% Costs of Issuance $80,000.00 Admin Fee Inflation/ Escalation Rate 3.00% Preliminary Estimated Total $6,312,058.98 Annual Escalation Rate for Energy Costs 4.00% Term 15 yrs 3.82% Contingency (of Aquisition and Gross Retrofit Cost)$237,941.02 Relamp Reserve Earnings Rate 1.30% Total Financed Amount $6,550,000.00 SCE Incentives (Received in Year 2)$660,889.47 Date modified: 6/20/2019 (1) Streetlight count subject to final reconciliaton with SCE (2) GE price: LED retrofit cost per pole, which is a weighted average based on applying proposed pricing to individual city's lamp type distribution. Cost includes an assumed photocell cost of $13.33 per pole. * City-owned lamp count preliminary and subject to final inventory with work expected to be completed by Siemens. Final count will be provided post-closing. Any additional funds required above Total Financed Amount to complete work associated with overall project will be paid for by City's General Fund. 1 10.8.a Packet Pg. 130 Attachment: Menifee Cash Flows (2700 : Streetlights Retrofit Project - WRCOG Request) CITY OF MENIFEE SUBJECT: Conflict of Interest Code with Required Form 700 Filers Update MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Sarah Manwaring, City Clerk REVIEWED BY: Sarah Manwaring, City Clerk APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION Adopt a Resolution amending the City of Menifee Conflict of Interest Code, which lists FPPC Form 700 filers, and receive the 2020 biennial notice. DISCUSSION As a routine matter, the Political Reform Act requires every local government agency to review its Conflict of Interest Code biennially to determine if it is accurate. The local agency’s Conflict of Interest Code must reflect the current structure of the organization and properly identify officials and employees who should be filing Statements of Economic Interests. A code tells public officials, governmental employees, and consultants what financial interests they must disclose on their Form 700s. It helps provide transparency in local government as required under the Political Reform Act. The Code has been reviewed by the City Clerk and the City Attorney. The attached Designated Positions List and Disclosure Categories reflect the necessary changes. FISCAL IMPACT There is no fiscal impact. ATTACHMENTS 1. 2020 Resolution - Conflict of Interest Code amendment 2. 2020 Menifee Designated Positions and Disclosure Categories 10.9 Packet Pg. 131 RESOLUTION NO. 20-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE AMENDING THE CONFLICT OF INTEREST CODE FOR DESIGNATED CITY POSITIONS AND DISCLOSURE CATEGORIES FOR OFFICERS AND EMPLOYEEES OF THE CITY AND ITS LEGISLATIVE BODIES WHEREAS, The Political Reform Act (Government Code Section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix [or Appendices], designating positions and establishing disclosure categories, shall constitute the conflict of interest code of the City of Menifee (“City”). Individuals holding designated positions shall file their statements of economic interests with the City Clerk as the City’s Filing Officer. The City Clerk shall make the statements available for public inspection and reproduction (Gov. Code Sec. 81008). All statements will be retained by the City; and WHEREAS, the City of Menifee (“City”) adopted and promulgated a Conflict of Interest Code pursuant to the terms of Title 2, division 6 of the California Code of Regulations, Section 18730, and within the meaning of the Political Reform Act of 1974 (“Political Reform Act”), Government Code Section 87300, et seq.; and WHEREAS, under the Political Reform Act, Government code Section 87306, permits the amendment of the City’s Conflict of Interest Code; and WHEREAS, the City Council adopted previous Resolutions adopting and amending the City’s Conflict of Interest Code pursuant to Title 2, Division 6 of the California Code of Regulations, Section 18730, and the Political Reform Act, Government Code Section 87306; and WHEREAS, the Political Reform Act, Government Code Section 87306.5, requires every local government agency to review its Conflict of Interest Code biennially to determine if it is accurate; and WHEREAS, in the biennial review of designated positions, it was determined the list of designated positions needed to be amended to reflect current staffing. NOW, THEREFORE, BE IT RESOLVED that the City of Menifee does hereby resolve as follows: 10.9.a Packet Pg. 132 Attachment: 2020 Resolution - Conflict of Interest Code amendment [Revision 2] (2701 : Conflict of Interest Code Amendment) October 21, 2020 Page 2 of 5 Section 1. Recitals. (i) The Political Reform Act of 1974, California Government Code §§ 81000 et seq., requires the City of Menifee (the “City”) to establish a Conflict of Interest Code. (ii) The Political Reform Act has in the past and foreseeably in the future requires conforming amendments to be made in Conflict of Interest codes adopted and promulgated pursuant to its provisions. (iii) The City hereby determines that it is both necessary and appropriate to establish a Conflict of Interest Code and to list designated positions and to assign appropriate disclosure categories for those positions. (iv) The Fair Political Practices Commission has adopted a Model Conflict of Interest Code (the “Model Code”). The Model Code, which is codified in Division 6 of Title 2, California Code of Regulations, § 18730, can be incorporated by reference by the City as the City’s conflict of interest code. That Model Code will be amended by the Fair Political Practices Commission from time to time to conform to any amendments to the Political Reform Act. (v) Incorporation by reference of the terms of the aforementioned Model Code and any future amendments to it in the City’s Conflict of Interest Code will save the City time and the expenditure of public funds by minimizing the actions required of City Council to maintain conformity with the Political Reform Act. Section 2. Conflict of Interest Code Adopted. Exhibit “A” to this resolution, (Designated Employees for Conflict of Interest Code) and Exhibit “B” (Disclosure Categories) attached hereto and incorporated herein by reference, are adopted to be the Conflict of Interest Code of the City of Menifee. Section 3. Comment Period. Pursuant to the provisions of California Government Code § 87311, officers, employees, members of the public, consultants, and residents of the jurisdiction were given due and proper notice and opportunity to present their views prior to adoption of this resolution. Section 4. Statement of Economic Interests. Employees designated in Exhibit “A” shall file statements of economic interests (Form 700) with the City Clerk. The City Clerk shall forward the original Form 700s filed by the Mayor, Members of the City Council, Planning Commissioners, the City Manager, the City Attorney, and the City Treasurer to the Fair Political Practices Commission pursuant to California Government Code Sections 87200 and following. The City Clerk shall retain a copy of all statements of economic interest and make them available for public inspections and reproduction in accordance with Government Code Section 81008. 10.9.a Packet Pg. 133 Attachment: 2020 Resolution - Conflict of Interest Code amendment [Revision 2] (2701 : Conflict of Interest Code Amendment) October 21, 2020 Page 3 of 5 PASSED, APPROVED, AND ADOPTED this 21st day of October, 2020. __________________________ Bill Zimmerman, Mayor ATTEST: _______________________________ City Clerk, Sarah A. Manwaring APPROVED AS TO FORM: ______________________________ City Attorney, Jeffrey T. Melching 10.9.a Packet Pg. 134 Attachment: 2020 Resolution - Conflict of Interest Code amendment [Revision 2] (2701 : Conflict of Interest Code Amendment) October 21, 2020 Page 4 of 5 EXHIBIT “A” Designated Employees for the Conflict of Interest Code 10.9.a Packet Pg. 135 Attachment: 2020 Resolution - Conflict of Interest Code amendment [Revision 2] (2701 : Conflict of Interest Code Amendment) October 21, 2020 Page 5 of 5 EXHIBIT “B” Disclosure Categories 10.9.a Packet Pg. 136 Attachment: 2020 Resolution - Conflict of Interest Code amendment [Revision 2] (2701 : Conflict of Interest Code Amendment) CONFLICT OF INTEREST – DESIGNATED POSITIONS DEPARTMENT POSITION DISCLOSURE CATEGORY(IES) Council Members of the City Council 1* Commissions, Committees, Boards Members of the Planning Commission 1* Members of the Parks, Recreation and Trails Commission 1 Office of the City Manager City Manager 1* Assistant City Manager 1 Deputy City Manager/City Treasurer 1 Public Information Officer 1 Information Technology Director 1 Information Technology Supervisor 3 Information Technology Analyst 3 Senior Management Analyst 3 Human Resources Human Resources Manager 1 Risk Manager 1 Human Resources Analyst 3 Economic Development Economic Development Director 1 Management Analyst I 3 Office of the City Clerk City Clerk 1 Deputy City Clerk 3 City Attorney City Attorney 1* Assistant City Attorney 1 Finance Deputy Finance Director 1* Financial Services Manager 4 Financial Analyst 3 Purchasing and Contract Specialist 3 Building & Safety Building Official 1 Building/Safety Manager 5 Senior Building Inspector 4 Public Works Public Works Director/City Engineer 1 Assistant City Engineer 1 Principal Engineer 1 Public Works Manager 1 Construction Manager 1 Public Works Maintenance Supervisor 4 Senior Public Works Inspector 3 Senior Management Analyst 3 Senior Engineer 3 Community Development Community Development Director 1 Planning Manager 4 Senior Planner 5 Senior Management Analyst 3 Community Services Community Services Director 1 Management Analyst I 3 Community Services Manager 3 Park/Landscape Maintenance Manager 3 Police Department Police Chief 1 Police Captain 1 Police Lieutenant 4 10.9.b Packet Pg. 137 Attachment: 2020 Menifee Designated Positions and Disclosure Categories [Revision 1] (2701 : Conflict of Interest Code Amendment) Senior Personnel and Training Analyst 3 Police Support Services Manager 4 Sr. Code Enforcement Officer 4 Code Enforcement Manager 5 Fire Fire Chief 1 Fire Marshal 4 Consultants - Consultants shall be included in the list of designated employees subject to the following limitation: The City Clerk may exempt a particular consultant, although a “designated position,” if the City Clerk determines, in consultation with the City Attorney, that the consultant need not file a Form 700 based upon the scope of work to be performed by the consultant. * Government Code section 87200: This article is applicable to members of planning commissions, mayors, city managers, city attorneys, city treasurers, chief administrative officers and members of city councils of cities, and other public officials who manage public investments, and to candidates for any of these offices at any election. DISCLOSURE CATEGORY DEFINITION Category Definition 1 Full Disclosure – all investments and business positions in business entities, sources of income including gifts, loans and travel payments, and interests in real property located in the City. 2 All Income, Excluding Interests in Real Property – all investments and business positions in business entities, and sources of income including gifts, loans and travel payments. 3 City/Department Related Income – all investments and business positions in business entities and sources of income including gifts, loans and travel payments if the source is of a type which provides, manufactures, or supplies goods, materials, equipment, machinery or services, including training or consulting services, of the type utilized by or subject to the review or approval by the City or the department in which that person is employed. 4 City/Department Related Income, Real Property – all investments and business positions in business entities and sources of income including gifts, loans and travel payments, and all interests in real property, if the source is of a type which provides, manufactures, or supplies goods, materials, equipment, machinery or services, including training or consulting services, of the type utilized by or subject to the review or approval of the City or the department in which that person is employed. 5 Regulatory, Land Development Related Income, Real Property – all investments and business positions in business entities and sources of income including gifts, loans and travel payments, and interests in real property, if the source is of the type that is subject to the regulatory permit or licensing authority by the department in which that person is employed or the source of income is from land development, construction or the acquisition or sale of real property by the City. 10.9.b Packet Pg. 138 Attachment: 2020 Menifee Designated Positions and Disclosure Categories [Revision 1] (2701 : Conflict of Interest Code Amendment) CITY OF MENIFEE SUBJECT: Comprehensive Economic Development Strategy (CEDS) Annual Update MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Kayla Charters, Management Analyst REVIEWED BY: Jeff Wyman, Assistant City Manager APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION Receive and file the City of Menifee Comprehensive Economic Development Strategy (CEDS) Annual Update. DISCUSSION In the 2018 City Council Strategic Plan, Economic Development was identified as a priority for the City and staff. Through this process it was identified that an overall Comprehensive Economic Development Strategy (CEDS) driven plan was needed for regional economic development and local diversification, to benefit the City both short and long term. The objective of a CEDS plan is an incremental plan that would engage local and regional stakeholders, from both private and public sectors, increase revenue for critical city services and amenities for our residents, create needed jobs within the City, grow the businesses community, diversify Menifee’s local economy, and increase the City’s overall quality of life for residents. It is important to note that the City of Menifee is the first City in Southwest Riverside County to complete the plan formally, as well as receive a grant federally to complete it. BACKGROUND After completing the competitive grant process, the Menifee Office of Economic Development was awarded a matching grant from the U.S. Economic Development Administration (US EDA) for the Planning Program and Local Technical Assistance Grant for an up to amount of $50,000, with a 50% required match by the City of Menifee, for a total cumulative project amount of up to $100,000. On September 19, 2018 the City Council approved a Professional Services Agreement with the Natelson Dale Group, Inc. to complete a Comprehensive Economic Development Strategy for the City of Menifee, utilizing the funds noted above. The Comprehensive Economic Development Strategy was completed with the City’s General Plan in mind, and is intended to work in a complementary manner to all City plans, as a blueprint for Economic Development efforts in Menifee for the next five to ten years, pending funding. 10.10 Packet Pg. 139 City of Menifee Staff Report Comprehensive Economic Development Strategy Annual Update-Year 1 October 21, 2020 Page 2 of 3 The completed CEDS document contains: An analysis of economic and community development challenges and opportunities; and An economic development background of the City of Menifee, with a discussion of the economy, including geography, population, labor force, resources and the environment; and A section setting forth goals and objectives for taking advantage of the opportunities and solving the economic development challenges based on a SWOT analysis with the participation of the community and private sector business leaders; and, A plan of action, including suggested projects to implement objectives and goals set forth in the strategy. The CEDS provides the qualifying foundation for all funding applications submitted by City of Menifee to the EDA. The City of Menifee’s CEDS was submitted to the EDA on October 8, 2019 and received a letter of excellence from the EDA. The CEDS “Plan” must be updated every five years and be updated annually on the city’s annual progress with the plan, where project information can be updated. The annual updates do not change the vision or strategy of the plan, but ties into the overall General Plan mentioned above. It also complements and works with other city plans like the Development Code, and Parks Master Plan, etc. In order to be in compliance with the Federal EDA CEDS requirements for further grant opportunities that would be open to the City, the original stakeholder committee for the CEDS Plan, is required to meet annually, and as needed, with city staff and be involved in key strategy accomplishments in the City that pertain to the CEDS plan. City staff held a Virtual CEDS Stakeholder Committee meeting on September 29, where stakeholders were updated on accomplishments and objectives that have been met for tasks outlined in Year 1 of the CEDS. The City of Menifee Economic Development staff completed the annual update in partnership with the Natelson Dale Group, Inc. and submitted to the Federal EDA on October 8, 2020. Notable revisions to the CEDS provided in the annual update include 2 additional infrastructure projects: • Menifee auto mall road construction ($10,000,000) • Menifee Master Drainage Plan ($483,220) It is also notable to recognize that City staff was able to work through Year one in the plan and start to work in Year two ahead of schedule. This was because of notable commitments from the City Council, City Manager’s Office, and internal department coordination with the Building & Safety Department, Community Services, Community Development, Engineering, Finance, Police, and Fire Departments. In conclusion, the first City of Menifee Annual Update to the City’s CEDS has been prepared and submitted to the EDA, which has been accepted by the EDA, to comply with the requirements of maintaining a current “active plan”. City staff recommends that the City Council “Receive and File” Menifee’s Annual CEDS Update for 2020. 10.10 Packet Pg. 140 City of Menifee Staff Report Comprehensive Economic Development Strategy Annual Update-Year 1 October 21, 2020 Page 3 of 3 FISCAL IMPACT The fiscal impact is undetermined at this time. There are strategies listed in the plan, which may incur costs. Those items will be brought forward to the City Council for consideration at future dates, be included in future budget submittals, or part of the City Council strategic visioning sessions. ATTACHMENTS 1. 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 10.10 Packet Pg. 141 CEDS ANNUAL PERFORMANCE REPORT Submitted by: City of Menifee, California SUBMITTED TO: U.S. Department of Commerce Economic Development Administration October 2020 10.10.a Packet Pg. 142 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual Contents A. Introduction .......................................................................................................................................... 1 B. Executive Summary – SWOT Assessment............................................................................................ 3 C. Summary of Performance Measures ................................................................................................... 5 D. State and Regional Economic Setting ................................................................................................ 10 E. Local Economic Performance ............................................................................................................. 17 F. Action Plan Accomplishments (Year 1) .............................................................................................. 24 G. Action Plan Priorities (Year 2) ............................................................................................................ 41 H. Candidate CEDS Projects (Updated List) ............................................................................................ 52 I. Qualifying Census Tracts .................................................................................................................... 55 Appendix A: Updated Census Data ........................................................................................................... 56 10.10.a Packet Pg. 143 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 1 A. Introduction This Annual Performance Report documents major accomplishments in economic development during the past year for the City of Menifee, with a particular focus on identifying progress on the specific action items outlined in the Comprehensive Economic Development Strategy (CEDS) adopted in 2019. Performance Measures Utilizing baseline data from the 2019 CEDS as benchmarks, the performance measures chosen for this report focus on metrics that can be readily tracked over time and compared across different geographies. The focus on commonly available data sources (including the Census Bureau, Bureau of Labor Statistics, and various State sources) is intended to facilitate comparative updates in future years. In addition to the statistical measurements, the Performance Report also provides narrative descriptions of the City of Menifee’s programmatic accomplishments during the reporting year. CEDS Committee As with the original CEDS, preparation of this Performance Report was guided by the following CEDS Committee: Name Affiliation Private Public Michael Cano VFW X John Collison Mount San Jacinto College X Rick Croy Parks, Recreation and Trails Commission X Gina Gonzalez City of Menifee Economic Development Director X Karla Gonzalez Inland Empire Small Business Development Center (SBDC) X Nathan Hultgren County of Riverside Economic Development Agency (EDA) X Cheryl Kitzerow City of Menifee Director of Community Development X Kassen Klein Kassen Klein Consulting X Tony Lopiccolo Menifee Valley Chamber of Commerce X Doug McAllister Economic Development Coalition Southwest Riverside County X Richard Melrose Quail Valley Community Group X Sandy Melrose Quail Valley Community Group X David Mills Community (at-large member) X Gordon Mize Lee & Associates X Jon Nicks City of Menifee Director of Community Services X Anthony Shaw County of Riverside EDA Workforce Development Division X 10.10.a Packet Pg. 144 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 2 Name Affiliation Private Public Jonathan Smith City of Menifee Director of Public Works X Jeff Wyman City of Menifee Assistant City Manager X 10.10.a Packet Pg. 145 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 3 B. Executive Summary – SWOT Assessment The 2019 CEDS identified the following attributes and issues affecting the City of Menifee’s economic development potentials: STRENGTHS • Excellent quality of life • Proximity to two major freeways • “New”/attractive community • Uncrowded/uncongested community • Land supply provides capacity/options for new development (including high-profile parcels along 215 Freeway) • Proximity to two airports (French Valley and March Inland Port) • Excellent community college system in region (three nearby campuses, including one in Menifee) • The City government culture is supportive of progress • Safe community; City currently creating its own Police Department • Strategic/central location within urbanization path of larger region • Available water supply/service • City’s General Plan (including Economic Development Corridor concept) has set the stage for balanced, high-quality development in the future • Excellent resident workforce • Excellent health care facilities/services • Reasonably priced, quality housing • Forthcoming courthouse project WEAKNESSES • Separate, disconnected communities/subareas (sometimes with conflicting interests) • Some “new” aspects of Menifee are incompatible with older areas • Lack of cohesive image/brand – there is a need to pull all places and outlooks together • Lack of local entertainment facilities • City’s development fee structure is perceived as uncompetitive in terms of cost and transparency to developers • City (government) is understaffed, which can lead to delays in development approvals • Infrastructure deficiencies in some areas • Homeless population • Limited job base within community; many residents need to commute to outside jobs (see Appendix B for commuting data details) • Image as an “old” retirement community • Leakage of retail demand; limited supply of retail/restaurant facilities • No hotels or visitor amenities 10.10.a Packet Pg. 146 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 4 • School districts are not unified OPPORTUNITIES • Emerging medical services corridor (anchored by existing Loma Linda University Medical Center and the forthcoming Kaiser hospital – both in the adjacent City of Murrieta) • Potential to participate in medical technology cluster expanding out from San Diego County • Potential spin-off development from medical corridor (e.g., hotels, conference facilities, etc.) • Potential to attract/grow manufacturing firms and jobs • Potential to grow equine-related industries based on significant research practice at Burns Ranch • Potential to attract/grow high-tech industries based on existing occupations of Menifee’s resident workforce (many of whom commute to tech jobs in distant communities) • Potential to create an “old town” that is pedestrian friendly • Facilitate development of building space and programmatic support for entrepreneurial startups (e.g., co-working space, maker space, incubator facilities, etc.) • Enhance coordination between industry and workforce development (including community college system) • Menifee’s image is currently a blank slate and therefore can still be directed by future policy decisions • Companies in neighboring cities are starting to run out of space and growth options THREATS • Incorrect perception that Menifee is “development unfriendly” based on prior government’s (Riverside County’s) operations • Utility infrastructure is deficient in some parts of Menifee • Land prices are escalating and in some cases sellers’ expectations are unrealistic • The overall region (Temecula Valley) lacks a 4-year college/university • Industrial/office space appropriate for smaller businesses is limited • State/Federal regulatory hurdles • Lack of upscale, executive-caliber housing • Potential for traffic to become a constraint to future development (if infrastructure improvements do not keep pace with demand) 10.10.a Packet Pg. 147 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 5 C. Summary of Performance Measures This section of the report focuses on standard economic performance measures utilizing official government (state and federal) data sources. Specific programmatic accomplishments of the City of Menifee are summarized in Section F of this Performance Report. Statistical Performance Measures Summary Tables A through D below highlight the following key performance measures considered in this report: ◼ One-year population growth compared to County and State benchmarks (2019-2020 data); ◼ One-year and two-year changes in resident unemployment rates (2018-2020 data); ◼ One-year and longer-term (10-year) change in sales tax revenue compared to County and State benchmarks (2010-2020 data); ◼ Five-year trends for key Census ACS data (city, county, state, U.S.) (2015-2018 data) for the following measures o Educational attainment o Labor force participation rate o Home ownership rate o Median household and average per capita income levels Key findings for these measures are summarized immediately below. 10.10.a Packet Pg. 148 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 6 Measure Period CEDS Target Area Performance Economic Favorability Rating Population growth 2019-2020 Population in Menifee, increased at a higher rate (2.5%) than the county (0.8%) and state (0.2%) benchmarks. Favorable Change in resident unemployment rate 2018-2020 The Unemployment rate in Menifee (4.6%) is slightly higher than the state (4.1%) and national (4.1%) benchmarks, but slightly less than the county (4.9%) benchmark. Neutral Growth in sales tax revenue 2019-2020 Menifee (-2.4%) experienced a loss in sales tax revenue, but managed to slightly outperform the county (-2.5%) and the state (-3.0). It should be noted that the 1-year decline in sales tax revenue was due to the sudden economic impacts of the COVID-19 pandemic; prior to the pandemic, Menifee was experiencing strong sales tax growth. Neutral Labor force participation 2015-2018 The Labor force participation rate for Menifee (- 0.6%) was slightly less than the county (-0.3%), state (-0.1%), and the nation (-0.4%). Less favorable Home ownership rate 2015-2018 The rate of home ownership increased for Menifee (2.5%) and outperformed the county (1.0%), the state (0.3%), and the U.S. (0.0%). Favorable Median household and average per capita income levels 2015-2018 Both Median household and Per capita income increased significantly for Menifee (17.5%, 19.3%) and outperformed the county (13.0%, 14.1%), the state (15.2%, 15.5%), and the U.S. (11.9%, 12.8%). More favorable 10.10.a Packet Pg. 149 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 7 Table A Total Population by Year Menifee and Reference Areas 2019-2020 Place 2019 2020 % Change 2019-20 Menifee 94,732 97,093 2.5% Riverside County 2,422,146 2,442,304 0.8% California 39,695,376 39,782,870 0.2% Notes: 1. The current year and historical population estimates have been modified to reflect the DOF Estimates as of January 1 for each year. Note that published population estimates from previous years are sometimes changed between updated reports. Source: California Department of Finance, Table 1: E-5 City/County Population and Housing Estimates Table B Resident Unemployment Rates 2018 – 2020 Menifee and Reference Areas Date Menifee Riverside County California United States July 2018 4.6% 4.9% 4.5% 4.1% July 2019 4.5% 4.7% 4.4% 4.0% July 2020 14.1% 13.7% 13.7% 10.5% 2-year change 9.5% 8.8% 9.2% 6.4% 1-year change 9.6% 9.0% 9.3% 6.5% Notes: 1. 1 and 2-year changes are percentage point changes. 2. Unemployment rates are not seasonally adjusted. 3. Note that published unemployment rates of previous years are sometimes changed between updated reports. Sources: United States Bureau of Labor Statistics; California Employment Development Department 10.10.a Packet Pg. 150 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 8 Table C Annual Percentage Change Total Sales Tax Revenue1 Menifee and Reference Areas Most Recent Year & Past 10 Years Place Fiscal Year 2019-20202 Average Annual Change, Past 10 Years3 Menifee -2.4% 12.4% Riverside County -2.5% 6.3% California -3.0% 7.7% Notes: (1) Underlying data are State distributions of 1% local tax. (2) It should be noted that the 1-year decline in sales tax revenue was due to the sudden economic impacts of the COVID-19 pandemic; prior to the pandemic, Menifee was experiencing strong sales tax growth. (3) Compound Annual Growth Rate. Source: California State Board of Equalization; California Department of Tax and Fee Administration (CDTFA)1 1 Although the California Department of Tax and Fee Administration (CDTFA) now compiles the 1% local sales and use tax payment distributions data, some of the historical data were collected by the California State Board of Equalization. 10.10.a Packet Pg. 151 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 9 Table D Comparison of Demographic Trends by Place % Change 2015 – 2018 Subject Menifee Riverside County California United States Type of Change Total population 6.1% 3.7% 1.9% 2.0% PC Educational attainment High school diploma -1.4% 1.1% -0.1% -0.7% PPC Bachelor’s degree 1.0% 0.5% 1.0% 0.9% PPC Graduate degree 1.2% 0.4% 0.9% 0.9% PPC Labor force participation -0.6% -0.3% -0.1% -0.4% PPC Unemployment rate -5.9% -4.3% -3.2% -2.4% PPC Home ownership rate 2.5% 1.0% 0.3% 0.0% PPC Median household income 17.5% 13.0% 15.2% 11.9% PC Per capita income 19.3% 14.1% 15.5% 12.8% PC Note: The following abbreviations are used for the type of change indicated above: Percentage Change (PC); Percentage Point Change (PPC) Source: U.S. Census Bureau – American Community Survey (5-year surveys ending in 2015, and 2018). 10.10.a Packet Pg. 152 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 10 D. State and Regional Economic Setting The City of Menifee is within the dynamic Inland Empire region of southern California. This section of the Performance Report provides a brief overview of recent (2019) and expected (2020) economic trends for California, southern California and the Inland Empire region, including Riverside County in particular. For purposes of this discussion, southern California is defined to include Los Angeles, Orange, San Bernardino, Riverside, Ventura and San Diego Counties. The Inland Empire includes San Bernardino and Riverside Counties. The three Economic Highlights sections below are excerpted from the most recent regional economic summary2 prepared by the LAEDC Institute for Applied Economics – the research arm of the Los Angeles Economic Development Corporation (LAEDC). California Economic Highlights 2020 • Unlike the recent past when California exceeded national growth, we expect California to see GDP growth roughly in line with the national average (p. 30). • Normalization of trade relations with China but especially Mexico and Canada, California’s largest export markets, will be net benefits for the world’s fifth-largest economy (p. 30). • Chronic housing affordability problems and net outmigration will be longer-term drags on the state’s prospects for growth without significant policy action (p. 30). • Construction, logistics, health, education and tourism will be the primary job creators in the new year (p. 30). Southern California Economic Highlights 2020 • In aggregate, the 10-county Southern California region is expected to be slightly behind the state in GDP growth through 2021 (p. 31). • As with other California regions, affordability and net migration inland present ongoing challenges to growth the efficient movement of people and goods (p. 31). • Region per capita income growth is expected to continue to outpace the nation and the state, likely motivated by strong employment in the construction, logistics, professional services and health industries (p. 31). • Long term regional investments in transportation such as the Southern California Optimized Rail Expansion will offer opportunities to improve regional growth (p. 31). Riverside County Economic Highlights 2020 • Economic growth should continue to be driven by gains in the logistics and health care sectors. (p. 35). • Outflow from Los Angeles County and other high-priced coastal counties will increase the population in Riverside, as well as move home values higher. (p. 35). • Riverside County should see substantial real personal income growth, with the highest projected income increase of any county. (p. 35). 2 Los Angeles Economic Development Corporation (LAEDC), 2020 Economic Forecast An Economic Outlook for Southern California. 10.10.a Packet Pg. 153 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 11 Overview of Inland Empire’s Economic Performance. The material in this section and the Trends in Major Industries section, following, is excerpted from the Inland Empire Quarterly Economic Report for April 2020.3 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, the average annual employment was 1,556,900. The 2020 annual average job level is estimated at 1,486,300, a decrease of 70,600 jobs or -4.5% (pg. 1). This forecast was derived from the sector by sector logical assumptions applied and analyzed as summarized below: • Past California Employment Development Department (EDD) data were used to estimate monthly seasonality factors for each inland sector and were applied to the EDD’s January-April 2020 estimates. • Estimates were made of how each sector would grow or decline from its seasonally adjusted April 2020 level to December 2020 based on discussions with over 30 local companies and other economist insights. • The compounded monthly growth rates by sector were calculated between April data and December estimates, and were used to estimate employment by sector for the intervening months. • Figures were adjusted to include seasonality by using the historic share that each months’ jobs have traditionally made of its annual total, and together with EDD’s January to April job levels, this resulted in forecasting the estimated monthly growth by sector for 2020 and the annual average job growth by sector (pg. 2). Trends in Major Industries The four traditional sectors powering the Inland Empire’s economic base are logistics, health care, construction, and manufacturing. Logistics. The 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 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. These difficulties should soften somewhat as world trade picks up through December. Given these factors and the sector’s 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 (pg. 2). 3 Inland Empire Economic Partnership, Inland Empire Quarterly Economic Report, Volume 32, No. 2, April, 2020. Excerpts include minimal edits. 10.10.a Packet Pg. 154 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 12 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 loss of 12,000 jobs 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) (pg. 2). 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 (pg. 2). 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 (pg. 2). Higher 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 (pg. 5). Moderate paying groups 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 10.10.a Packet Pg. 155 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 13 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%) (pg. 5). Lower-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%) (pg. 5). 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%) (pg. 6). Home Prices. In the inland area, new home prices flattened but existing home prices were strong. In first quarter 2020, the median priced San Bernardino County new home sold for $486,750, down -1.4% from first quarter 2019. In Riverside County, new homes sold for a median of $434,000, down -0.2%. Existing homes in Riverside County sold for a median of $405,000, up 5.2%. In San Bernardino County, they sold for $339,000, up 7.6%. The traditional savings for households to migrate inland from the coastal counties were seen in the substantial savings compared to coastal county home prices. There, new homes ranged from $612,250 to $911,000 and existing homes ranged from $635,000 to $820,000. Home Sales Volume. Looking at raw volume data, Riverside County had 6,969 existing home sales in first quarter 2020, up 11.7% from 6,237 in 2019 (Exhibit 15). San Bernardino County had 5,250 existing home sales, up 10.7% from 4,741 in first quarter 2019. By sub-market, southwest County had Riverside County’s largest percentage gain in volume and total volume (2,100; 22.1%). In San Bernardino County, the areas west of the I-15 led in percentage gain and total volume (1,117; 18.6%). Riverside County’s first quarter 2020 new home volume was 1,315, up 21.5% from 1,082 in 2019 with the largest percentage gain in the Riverside city (138; 62.4%). The volume leader was the southwest county (391; 2.1%). San Bernardino County’s volume was 841 units, up 43.8% from first quarter 2019’s volume of 585. The mountain areas had the largest percentage gain (11; 450.0%), while the largest volume was west of the I-15 (423, 19.5%). 10.10.a Packet Pg. 156 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 14 Economic Impact of COVID-19 Significant impacts to the local, state, and national economy have occurred as a result of the COVID-19 pandemic, which continues to affect many of the industries highlighted in the 2020 CEDS Annual Performance Report. The following excerpts are taken from a briefing that was prepared by the LAEDC Institute for Applied Economics (IAE) early in the COVID-19 pandemic. 4 First appearing in California in late-February, the COVID-19 pandemic brought business and life to a grinding halt. At the time LAEDC’s brief report was written (April 2020), all nonessential businesses, which are generally defined as recreational and not critical to maintaining personal well-being, were closed. Meanwhile, workers in occupations deemed essential during this pandemic still needed to be physically present to do their work. Those in the postal service, food delivery, grocery, medical and similar fields continued to work with the risk of exposing themselves, as well as those with whom they share their homes, to the virus. In light of the rapid and dramatic effect that the onset of the COVID-19 pandemic had on employment across the United States, LAEDC’s April 2020 briefing focused on quantifying the pandemic’s initial and foreseeable economic impacts within the Southern California region. Southern California includes 10 major counties that extend from San Luis Obispo to San Diego, and out to Nevada and Arizona at its farthest East. This region accounted for 10.3 million jobs last year, and includes the important hub of Los Angeles MSA, which itself contributes 6.5 million jobs to the economy. For its April 2020 briefing, LAEDC examined each of the region’s eight component metropolitan statistical areas (MSA) and its many occupational groups to estimate where the highest numbers of jobs had been lost and where unemployment was most pronounced. Tables 1 through 5 compare recent historic and near-term projected economic trends for California, southern California and the Inland Empire. Computational adjustments have been made to the data reported for Tables 1-5 based on changes to the format for the LAEDC 2020 Forecast & Industry Outlook report. In some cases, the previous-year estimates were used in combination with the incremental growth estimates for 2019. Tables 4 and 5 include computational adjustments using incremental growth figures. It should be noted that the adjustments are based solely on the initial response to COVID-19 in the Southern California region (i.e., as of April 2020), and have not been further adjusted to reflect more recent data. 4 LAEDC Institute for Applied Economics (IAE), Employment Impact of COVID-19: Southern California, April 21, 2020. Excerpts include minimal edits. 10.10.a Packet Pg. 157 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 15 Table 1 Percent Changes in Regional Economic Setting State of California 2010 – 2020 Category Percent Change 2010-20 Percent Change 2018-19 Percent Change 2019-20 Total Population 8.3% 0.5% 0.2% Non-farm Employment 24.4% 2.0% 1.6% Real personal income 5 (not available) 3.6% 2.2% Housing permits 123.6% -7.7% -6.8% Source: Los Angeles Economic Development Corporation (LAEDC), 2020 Economic Forecast An Economic Outlook for Southern California; California Employment Development Department. Table 2 Percent Changes in Regional Economic Setting Southern California 2010 – 2020 Category Percent Change 2010-20 Percent Change 2018-19 Percent Change 2019-20 Total Population 7.7% 0.3% 0.1% Non-farm Employment 16.6% 1.5% 0.1% Real personal income (not available) 3.2% 2.4% Housing permits 227.6% -4.2% 0.7% Source: Los Angeles Economic Development Corporation (LAEDC), 2020 Economic Forecast An Economic Outlook for Southern California; California Employment Development Department. Table 3 Percent Changes in Regional Economic Setting Inland Empire 2010 – 2020 Category Percent Change 2010-20 Percent Change 2018-19 Percent Change 2019-20 Total Population 11.3% 1.0% 0.7% Non-farm Employment 24.2% 1.9% 0.8% Real personal income, Riverside County (not available) 3.9% 3.3% Real personal income, San Bernardino County (not available) 3.3% 3.0% Housing permits 115.5% -6.1% -0.7% Source: Los Angeles Economic Development Corporation (LAEDC), 2020 Economic Forecast An Economic Outlook for Southern California; California Employment Development Department. 5The “% change in income” measure for this group of tables is changed from Total Personal Income to Real Personal Income, based on the revised format in the most recent version of the source document originally used in these reports. 10.10.a Packet Pg. 158 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 16 Table 4 Comparison of Economic Trends (Percentage Change for Most Recent Year) California, Southern California and Inland Empire Change 2019-2020 Category State of California Southern California Region Inland Empire Region Total Population 0.2% 0.1% 0.7% Non-farm Employment 1.6% 0.1% 0.8% Real personal income 2.2% 2.4% Real personal income, Riverside County 3.3% Real personal income, San Bernardino County 3.0% Source: Los Angeles Economic Development Corporation (LAEDC), 2020 Economic Forecast An Economic Outlook for Southern California; California Employment Development Department. Table 5 Comparison of Projected Near-term Economic Trends (Projected 1-year percentage change) California, Southern California and Inland Empire Projected Change 2020-2021 Category State of California Southern California Region Inland Empire Region Total Population 0.2% 0.1% 0.7% Non-farm Employment 1.6% 1.2% 1.4% Real personal income 2.2% 2.5% Real personal income, Riverside County 3.3% Real personal income, San Bernardino County 2.9% Source: Los Angeles Economic Development Corporation (LAEDC), 2020 Economic Forecast An Economic Outlook for Southern California; California Employment Development Department. 10.10.a Packet Pg. 159 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 17 E. Local Economic Performance Table 6 provides key measures of economic performance of Menifee for the period 2010 through 2018 (the latest year for which Census data are available through the American Community Survey program). Tables 7 through 9, respectively, provide the same data for three larger reference areas: Riverside County, California and the United States. Table 10 provides a comparative summary of Menifee and the larger reference areas. Table 6 Key Measures of Local Economic Performance 2010-2018 City of Menifee Subject 2010 Census 2015 ACS 2016 ACS 2017 ACS 2018 ACS % Change 2015-18 Type of % Change Total population 77,519 83,442 84,978 86,820 88,515 6.1% PC Educational attainment High school diploma N/A 28.3% 27.6% 27.0% 26.8% -1.4% PPC Bachelor’s degree N/A 11.0% 10.9% 12.0% 12.0% 1.0% PPC Graduate degree N/A 5.9% 6.6% 7.0% 7.1% 1.2% PPC Labor force participation N/A 56.9% 56.4% 56.1% 56.3% -0.6% PPC Unemployment rate N/A 14.0% 11.3% 9.0% 8.1% -5.9% PPC Home ownership rate 76.9% 74.0% 73.6% 74.3% 76.5% 2.5% PPC Median household income N/A $55,985 $57,598 $60,808 $65,757 17.5% PC Per capita income N/A $23,210 $24,183 $26,087 $27,680 19.3% PC Note: The following abbreviations are used for the type of change indicated above: Percentage Change (PC); Percentage Point Change (PPC) Source: U.S. Census Bureau – 2010 Census and American Community Survey (5-year surveys ending in 2015, 2016, 2017, and 2018). 10.10.a Packet Pg. 160 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 18 Table 7 Key Measures of Local Economic Performance 2010-2018 Riverside County Subject 2010 Census 2015 ACS 2016 ACS 2017 ACS 2018 ACS % Change 2015-18 Type of % Change Total population 2,189,641 2,298,032 2,323,892 2,355,002 2,383,286 3.7% PC Educational attainment High school diploma N/A 25.8% 25.9% 26.4% 26.9% 1.1% PPC Bachelor’s degree N/A 13.4% 13.5% 13.7% 13.9% 0.5% PPC Graduate degree N/A 7.6% 7.7% 7.8% 7.9% 0.4% PPC Labor force participation N/A 60.4% 60.1% 60.1% 60.1% -0.3% PPC Unemployment rate N/A 12.9% 11.3% 9.9% 8.6% -4.3% PPC Home ownership rate 67.4% 64.8% 64.5% 65.0% 65.8% 1.0% PPC Median household income N/A $56,603 $57,972 $60,807 $63,948 13.0% PC Per capita income N/A $23,783 $24,443 $25,700 $27,142 14.1% PC Note: The following abbreviations are used for the type of change indicated above: Percentage Change (PC); Percentage Point Change (PPC) Source: U.S. Census Bureau – 2010 Census and American Community Survey (5-year surveys ending in 2015, 2016, 2017, and 2018). 10.10.a Packet Pg. 161 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 19 Table 8 Key Measures of Local Economic Performance 2010-2018 California Subject 2010 Census 2015 ACS 2016 ACS 2017 ACS 2018 ACS % Change 2015-18 Type of % Change Total population 37,253,956 38,421,464 38,654,206 38,982,847 39,148,760 1.9% PC Educational attainment High school diploma N/A 20.7% 20.6% 20.6% 20.6% -0.1% PPC Bachelor’s degree N/A 19.8% 20.1% 20.4% 20.8% 1.0% PPC Graduate degree N/A 11.6% 11.9% 12.2% 12.5% 0.9% PPC Labor force participation N/A 63.6% 63.4% 63.5% 63.5% -0.1% PPC Unemployment rate N/A 9.9% 8.7% 7.7% 6.7% -3.2% PPC Home ownership rate 55.9% 54.3% 54.1% 54.5% 54.6% 0.3% PPC Median household income N/A $61,818 $63,783 $67,169 $71,228 15.2% PC Per capita income N/A $30,318 $31,458 $33,128 $35,021 15.5% PC Note: The following abbreviations are used for the type of change indicated above: Percentage Change (PC); Percentage Point Change (PPC) Source: U.S. Census Bureau – 2010 Census and American Community Survey (5-year surveys ending in 2015, 2016, 2017, and 2018). 10.10.a Packet Pg. 162 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 20 Table 9 Key Measures of Local Economic Performance 2010-2018 United States Subject 2010 Census 2015 ACS 2016 ACS 2017 ACS 2018 ACS % Change 2015-18 Type of % Change Total population 308,745,538 316,515,021 318,558,162 321,004,407 322,903,030 2.0% PC Educational attainment High school diploma N/A 27.8% 27.5% 27.3% 27.1% -0.7% PPC Bachelor’s degree N/A 18.5% 18.8% 19.1% 19.4% 0.9% PPC Graduate degree N/A 11.2% 11.5% 11.8% 12.1% 0.9% PPC Labor force participation N/A 63.7% 63.5% 63.4% 63.3% -0.4% PPC Unemployment rate N/A 8.3% 8.7% 6.6% 5.9% -2.4% PPC Home ownership rate 65.1% 63.9% 63.6% 63.8% 63.8% 0.0% PPC Median household income N/A $53,889 $55,322 $57,652 $60,293 11.9% PC Per capita income N/A $28,930 $29,829 $31,177 $32,621 12.8% PC Note: The following abbreviations are used for the type of change indicated above: Percentage Change (PC); Percentage Point Change (PPC) Source: U.S. Census Bureau – 2010 Census and American Community Survey (5-year surveys ending in 2015, 2016, 2017, and 2018). 10.10.a Packet Pg. 163 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 21 Table 10 Comparison of Demographic Trends by Place % Change 2015 – 2018 Subject Menifee Riverside County California United States Type of Change Total population 6.1% 3.7% 1.9% 2.0% PC Educational attainment High school diploma -1.4% 1.1% -0.1% -0.7% PPC Bachelor’s degree 1.0% 0.5% 1.0% 0.9% PPC Graduate degree 1.2% 0.4% 0.9% 0.9% PPC Labor force participation -0.6% -0.3% -0.1% -0.4% PPC Unemployment rate -5.9% -4.3% -3.2% -2.4% PPC Home ownership rate 2.5% 1.0% 0.3% 0.0% PPC Median household income 17.5% 13.0% 15.2% 11.9% PC Per capita income 19.3% 14.1% 15.5% 12.8% PC Note: The following abbreviations are used for the type of change indicated above: Percentage Change (PC); Percentage Point Change (PPC) Source: U.S. Census Bureau – 2010 Census and American Community Survey (5-year surveys ending in 2015, 2016, 2017, and 2018). 10.10.a Packet Pg. 164 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 22 Whereas the population estimates shown on the preceding tables are derived from ACS survey processes (and are therefore understood to include a margin of error), Table 11 below shows 6-year population trends based on estimates from the California Department of Finance. Table 11 Total Population by Year Menifee and Reference Areas 2015-2020 Place 2015 2016 2017 2018 2019 2020 % Change 2015-20 Menifee 86,359 88,131 90,197 92,157 94,732 97,093 12.4% Riverside County 2,315,706 2,343,785 2,376,580 2,400,762 2,422,146 2,442,304 5.5% California 38,870,150 39,131,307 39,398,702 39,586,646 39,695,376 39,782,870 2.3% Notes: 1. The current year and historical population estimates have been modified to reflect the DOF Estimates as of January 1 for each year. Note that published population estimates from previous years are sometimes changed between updated reports. Source: California Department of Finance, Table 1: E-5 City/County Population and Housing Estimates Table 12 summarizes 2-year trends in unemployment rates for Menifee and the larger reference areas. Although it is understood that unemployment rates typically vary on a seasonable basis, the data points below are intended to provide year-to-year comparisons by showing “snapshots” of the unemployment rates during the month of July. Table 12 Resident Unemployment Rates 2018 – 2020 Menifee and Reference Areas Date Menifee Riverside County California United States July 2018 4.6% 4.9% 4.5% 4.1% July 2019 4.5% 4.7% 4.4% 4.0% July 2020 14.1% 13.7% 13.7% 10.5% 2-year change 9.5% 8.8% 9.2% 6.4% 1-year change 9.6% 9.0% 9.3% 6.5% Notes: 1. Annual changes represent percentage point changes. 2. Unemployment rates are not seasonally adjusted. 3. Note that published unemployment rates of previous years are sometimes changed between updated reports. Source: United States Bureau of Labor Statistics; California Employment Development Department. Table 13 shows 10-year trends for total sales tax revenue distribution for Menifee as well as comparative data for Riverside County and California as a whole. It should be noted that sales tax revenues are received by the local jurisdictions (from the State) approximately three months after actual taxable sales occur. In addition, data for the most recent year is subject to revision (by the State). Thus, these numbers should not be regarded as definitive, but represent a reasonable gauge of general trends. 10.10.a Packet Pg. 165 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 23 Table 13 Annual Percentage Change Total Sales Tax Revenue1 Menifee and Reference Areas 2010– 2020 (selected years) Place Fiscal Year 2017-2018 Fiscal Year 2018-2019 Fiscal Year 2019-2020 Average Annual Change, Past 10 Years2 Menifee 8.4% 13.2% -2.4% 12.4% San Bernardino County -1.8% 18.7% -2.5% 6.3% California 4.0% 8.3% -3.0% 7.7% Note: (1) Underlying data are State distributions of 1% local tax. (2) Compound Annual Growth Rate Source: California State Board of Equalization; California Department of Tax and Fee Administration (CDTFA) 10.10.a Packet Pg. 166 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 24 F. Action Plan Accomplishments (Year 1) Table 14, beginning on the following page, provides a summary of the City’s progress on the major Action Plan strategies detailed in the 2019 CEDS. On the two-column table, the left column provides a verbatim list of the specific Action Items included each CEDS Strategy Group. The right column provides a corresponding list of specific accomplishments during Year 1 (Fiscal Year 2019-2020) of the CEDS implementation period. In some cases, the table includes embedded links to more detailed descriptions of implemented programs. Given the devasting and sudden impacts of COVID-19 on the U.S. economy, in March 2020 the focus of the City’s economic development programming substantially shifted to pandemic-related business assistance and retention efforts. COVID-related initiatives are noted on Table 14 where relevant for each CEDS Strategy Group (along with non-COVID activities relevant to each group). The COVID-specific programs are also summarized separately at the end of the table. 10.10.a Packet Pg. 167 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 25 Table 14 City of Menifee Economic Development Strategy (CEDS) Summary of Implementation Progress (Fiscal Year 2019-2020) Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments 1. ORGANIZATIONAL CAPACITY A. Establish overall implementation approach and milestones. • Ongoing coordination with Workforce Development Board • Working with Riverside County Office of International Business to expand existing Foreign Trade Zone to encompass part of Menifee • Supporting progress of regional Economic Development Corporation (EDC) – city managers and economic development directors have been meeting to advance the following initiatives: o Potentially hiring full-time EDC director o Regional business attraction program (covering non-retail target industries) o Regional coordination on Direct Foreign Investment B. Institutionalize a system of partners who will participate in CEDS implementation, and meet annually to provide update on process and progress. 2. MARKETING, GENERAL A. Develop research-based materials that demonstrate market advantages for both developing real estate and locating businesses in Menifee (including, as a high priority, a retail leakage study). • Completed retail, office and industrial market studies to identify marketing targets and support the development of collateral material • City is creating a marketing magazine (32-page magazine showcasing Menifee’s industries, housing options, business success stories, real estate availability and development sites, hotels). Will use this as collateral material at trade conferences (ICSC, etc.) and also place in hotel rooms. • City now has a full-time Public Information Officer • Developed ambassador program for brewery and distillery businesses • Working on industry-specific business prospect lists (City has budgeted for a consultant to support this effort in FY 2020-2021) • Developed marketing ads focused on recruiting unique eateries (placed ad in the Inland Empire Magazine) (https://www.dropbox.com/s/gjet667lwf0qxcb/Menifee_InlandEmpire B. Develop formal economic development marketing plan that reflects researched materials, building on the City’s existing marketing plans/initiatives. C. Coordinate messages promoting real estate development and industry targeting (for both local-serving businesses and employers). D. Review options for retaining a marketing specialist or consultant to develop a marketing program and related collateral materials. 10.10.a Packet Pg. 168 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 26 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments Magazine_FullPageAd_8.375x10.875_2020_UniqueEateries_FINALHR.p df?dl=0) • Developed marketing ads focused on recruiting unique breweries (placed ad in West Coaster Magazine) (https://www.dropbox.com/s/yojmxzbagzkjmcu/Menifee_WestCoaster _FullPageAd_8.125x10.5_DISTILLERY_FINALHR1%20%283%29.pdf?dl=0) • Continuing to work with Searle Creative on Menifee Economic Development website • Implemented “Where’s the Chief” recruitment campaign for police officers (campaign is based on theme of “The Office”) • Partnering with Mt. San Jacinto College on ABCDE (“Anything Brewed, Crushed, Distilled or Eaten”) food festival planned for Spring 2021 • Have established online jobs board (in partnership with Chamber of Commerce) and hosted two job fairs • Developed videos to support industry marketing for northern gateway and southern gateway Due to COVID-19, the City’s marketing efforts quickly shifted from an attraction focus to a retention focus. The following COVID-19 initiatives relate to the City’s marketing and business outreach efforts: • Implemented “Menifee Forward” COVID-19 recovery plan • Implemented Menifee Cares initiative (COVID-related business tool kit) o The Menifee Cares website o The Menifee Cares branding effort • Created 24-page COVID resource guide (distributed 36,000 copies to businesses and residents) o Developed 4 economic impact surveys, which also includes the Business KEEP business walk • Hosted COVID-related webinars, podcasts and townhall meeting o Developed Toolkit for Resources for businesses/individuals 10.10.a Packet Pg. 169 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 27 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments • Developed and administered MeniFREEwards Restaurant Takeout Program and extended program (4/03/2020 and9/25/2020) • Created a #ShopLocal Program as part of Menifee Forward • Promoted Take Out Tuesday Program on social media • Developed Mask-Up Menifee Campaign - and developed posters passed out to Business to encourage customers to wear masks to change behavior to allow businesses to open sooner • Developed Business listing of who is open/closed and hours • Menifee Matters included Econ Dev Business Highlights • Developing a SHOP LOCAL website for Menifee Forward to promote businesses • Developed Yard Signs to support Menifee Businesses and local PD for chamber of commerce • Regularly sending out Constant Contact COVID-19 Briefs, sharing the current information and resources business and community may need (sent over 81 E-Blasts) • Business Visit: visiting businesses Retail & Restaurant Guideline Expansion visit (5/26/2020) • Developed Essential Business Mapping Tool for website to locate businesses • PODCAST “ECONversations”: Every Monday-SW EconDev Directors discussing resources, programs, issues and business tips (just had one with Economist Chris Thornberg, next is with Am/Pac on funding for businesses) Through Partnerships: Review marketing programs and materials used by economic development partners, locally and regionally, for message-consistency with Menifee programs/materials. [See note under Strategy Group 1 above about coordination with EDC] 10.10.a Packet Pg. 170 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 28 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments 3. INDUSTRY TARGETING, LOCAL-SERVING BUSINESSES (RETAIL) A. Use data from research conducted for the CEDS and any additional research-based materials that have become available, to refine strategies for addressing retail leakage conditions in the City. Strategy should reflect the City’s competitive position with respect to commercial development characteristics (including market advantages / disadvantages) of surrounding communities. • The “Menifee Masters” program for residential real estate agents is a general means of enhancing Menifee’s retail environment (by focusing on attracting higher-income residents); based on initial success of this program, City will consider expanding frequency of events (from annual to quarterly) • Developed industry targeting ads focused on recruiting unique eateries (placed ad in the Inland Empire Magazine) https://www.dropbox.com/s/gjet667lwf0qxcb/Menifee_InlandEmpire Magazine_FullPageAd_8.375x10.875_2020_UniqueEateries_FINALHR.p df?dl=0) • Developed industry targeting ads focused on recruiting unique breweries (placed ad in West Coaster Magazine) (https://www.dropbox.com/s/yojmxzbagzkjmcu/Menifee_WestCoaster _FullPageAd_8.125x10.5_DISTILLERY_FINALHR1%20%283%29.pdf?dl=0) The following COVID-19 initiatives support the City’s industry targeting efforts for local serving businesses: • Developed with the Community Development Dept Outdoor Temporary Dining Permit, template application and press • Developed with the Community Development Dept Outdoor Temporary Personal Service Permit, template application and press • Business Visit: visiting businesses Retail & Restaurant Guideline Expansion visit (5/26/2020) • Developed Essential Business Mapping Tool for website to locate businesses B. Implement retail tenant recruitment program, in partnership with interested property owners, as part of expanded marketing efforts. 10.10.a Packet Pg. 171 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 29 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments 4. INDUSTRY TARGETING, EMPLOYERS A. As part of the research-based documentation of market conditions in Menifee, and to help refine target-industry prospects: • Document how key industries have spread outward from the San Diego area towards Menifee and the surrounding region. • Explore opportunities for leveraging the presence of nearby airports as business attractors, by expanding awareness of companies/industries now taking advantage of those facilities, and other measures. • Working on industry-specific business prospect lists (City has budgeted for a consultant to support this effort in FY 2020-2021) • Working with other cities in region to support expanded role of regional EDC (business attraction program covering non-retail target industries) • Working with Riverside County Office of International Business to expand existing Foreign Trade Zone to encompass part of Menifee • Working with GO-BIZ on outreach materials for business industry expansions/relocations • Working on Workforce Resource Center in community center for industry workforce needs B. Incorporate specialized industry attraction themes including, for example, tourism and foreign direct investment (FDI). Consider developing an FDI strategic plan. C. Implement target industry marketing program in partnership with industrial property owners and regional economic development organizations. 5. EXISTING-BUSINESS RETENTION AND EXPANSION (BRE) A. Business Outreach. Utilize online surveys, business site visits and other typical economic development tools to expand communication with existing firms, to achieve any or all of the following purposes: • Mayor's Industry Idea Exchange (4 events) • Small Business Development Center (SBDC) is opening office in Menifee City Hall 10.10.a Packet Pg. 172 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 30 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments • Identify any needs for business assistance and connect businesses with available support resources. • Probe their sense of locational advantages and disadvantages in Menifee, including such issues as the desirability of and potential for bringing key suppliers or business-service firms to the City. • Identify any needs for coordinating operational or expansion requirements with local regulatory bodies. • The City of Menifee’s Economic Development Department won an award for K.E.E.P. Business Walk, a program within the Economic Development Department, works with the Menifee Valley Chamber of Commerce, and the business community in an effort to “Keep Existing Employers Profitable (KEEP) by identifying the immediate needs of businesses, and providing insight on workforce skills, growth projections, and the overall state of business in the City. (https://www.cityofmenifee.us/ArchiveCenter/ViewFile/Item/2802) The following COVID-19 initiatives relate to the City’s BRE efforts: • Created Menifee Cares Recovery website, compiling resources on the website to help business community-updating information and resources daily (Website has been updated more than 435 times) • Developed Resource Toolkit for residents and businesses, which has been updated regularly as new resources become available (Updated over 24 times) (only City with Toolkit) • Fielded calls from businesses regarding closures and guidelines (Received over 185 calls) • Developed and administered MeniFREEwards Restaurant Takeout Program and extended program (04/03/2020 – Present) • Created a #ShopLocal Program soon to be announced as Menifee Forward w/press • Partnered with the Community Development Department to roll-out the Menifee CARES Grant • Developed a Tier Business Loan program should it be needed • Developed and ran Menifee CARE Grant program for businesses up to $5,000 to assist with retention efforts related to COVID-19 • Developed with the Community Development Dept Outdoor Temporary Dining Permit, template application and press 10.10.a Packet Pg. 173 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 31 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments • Developed with the Community Development Dept Outdoor Temporary Personal Service Permit, template application and press • Worked with the Development Team on permit extensions and project concerns • Worked with Finance on waiving business license fees for portion of FY 19/20 and 20/21 • Developed Mask-Up Menifee Campaign - and developed posters passed out to Business to encourage customers to wear masks to change behavior to allow businesses to open sooner • Developing a SHOP LOCAL website for Menifee Forward to promote businesses • Developed Yard Signs to support Menifee Businesses and local PD for chamber • Regularly sending out Constant contact COVID-19 Briefs, sharing the current information and resources business and community may need (sent over 81 E-Blasts) • Regularly reach out to all of our businesses via phone calls and/or email in regard to the new guidelines and current business operations • Outreach to struggling businesses, reaching out to businesses, searching for status, feedback, and needs • Researching grants from state and/or federal organizations to assist local businesses during COVID-19. • Sent letters to business/plazas, containing current City, County, and State resources along with Industry Guidelines for retailers (4/30/2020) • Contact plaza/property owners to connect about businesses in trouble, and to convince them to work with businesses on rent (most did end up creating a program for April/May). • Workshops on funding, SBA, Menifee CARES Grant, and resources available like PPP and EIDL. 10.10.a Packet Pg. 174 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 32 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments • Business Impacts Surveys (4 times) to assess Business Climate in the City, and to get an idea of workshops needed and resources, and overall confidence of recovery (started first week of 3/20/20, and just ended 4th survey 7/30/20) • Business Visit: visiting businesses Retail & Restaurant Guideline Expansion visit (5/26/2020) • Developed Essential Business Mapping Tool for website to locate businesses • PODCAST “ECONversations”: Every Monday-SW EconDev Directors discussing resources, programs, issues and business tips (just had one with Economist Thornberg, next is with Am/Pac on funding for businesses) • Business Visit: Menifee KEEP Business Impact Survey (06/24/20) (with Chamber) 6. ENTREPRENEURIAL DEVELOPMENT A. Investigate extent to which existing programs/facilities in the City and region meet the needs for emerging entrepreneurs, recognizing the different types of support needed by local-consumer startups and tech-oriented startups. • Initiated discussions with MSJC on: o Promoting existing maker space capacities o Options for a co-branded (City/MSJC) incubator facility • Actively coordinated with developer of proposed “Menifee Cube” mixed-use facility to identify potentials for incubator space (this project is currently on hold due to COVID-19) • Secured 300,000 square foot development project (private investment) that can serve as industrial/incubator space The following COVID-19 initiatives support the City’s entrepreneurial development efforts: • Workshops on funding, SBA, Menifee CARES Grant, and resources available like PPP and EIDL. B. As appropriate, investigate options for establishing incubator and/or business accelerator facilities in Menifee, working with partners. C. Explore ways the City can maximize its coordination with the business model of incubator operators and their tenant focus. 10.10.a Packet Pg. 175 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 33 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments 7. WORKFORCE DEVELOPMENT A. Workforce Development Coordination. Coordinate with local/regional educational and workforce-development organizations to ensure that available workforce training resources are in sync with the City’s business development efforts (including retention/expansion and findings of employer outreach) and industry targeting. • Partnering with Riverside County (using CDBG funding) to open part- time workforce center at Menifee Senior Center • The City of Menifee’s Economic Development Department won an award for Menifee Manufacturing Day, which is a program aimed to raise awareness about the myths of the manufacturing industry, and to promote advanced manufacturing careers and needs of the industry, to over 100 students in the City. (https://www.cityofmenifee.us/ArchiveCenter/ViewFile/Item/2802) The following COVID-19 initiatives support workforce development programming: • Workshops on funding, SBA, Menifee CARES Grant, and resources available like PPP and EIDL. 8. REAL ESTATE DEVELOPMENT AND REVITALIZATION / REDEVELOPMENT A. Expand as necessary on the research-based materials described under the General Marketing function above to: a) document specific competitive conditions for key commercial areas within the community, and b) identify the need for types of space that will support employers, from small entrepreneurs to larger firms. • Ongoing coordination with commercial/industrial real estate brokers (including Brokers Luncheon program) • Completed retail, office and industrial market studies to identify marketing targets. These studies will support the City’s marketing efforts and communications with brokers and developers (including CRE Brokers Group and Menifee Masters participants) • Investigated possibility of creating a business improvement district (BID) to support revitalization of the Sun City/Cherry Hills Plaza (determined to be infeasible at this time) • Major commercial/industrial development projects currently pending include: o 3 office buildings B. Establish an outreach program to real estate developers active in Menifee and the region to directly promote the community and assess interests and receive feedback concerning development prospects. C. Review policies related to the Economic Development Corridor, specifically as this may relate to the potential for mixed-use development, or for otherwise encouraging 10.10.a Packet Pg. 176 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 34 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments development activity in general, but especially creative and engaging projects. o 65 acres being assembled for industrial park o 5 new shopping centers (and new major tenants being added to existing centers) o 300,000 square foot industrial/incubator space D. Identify older commercial areas that may be suitable for, and benefit by, revitalization. Older commercial areas can sometimes be repurposed to uses that might be lacking in the community, for Menifee perhaps this is small spaces for startup companies. E. Create and market incentives for redevelopment / revitalization of older properties (potentially including non-financial incentives such as expedited entitlements and permit processing). F. As appropriate, contact the owners of commercial properties that might benefit from revitalization efforts to assess interest and potential partnerships or other forms of public support to achieve revitalization / redevelopment goals. 9. DEVELOPMENT STREAMLINING A. Audit current development approval processes and investigate options for expediting approvals (including expanded use of program-level environmental impact reports; online permitting tools, etc.). • The City’s progress on development streamlining this year includes the following: o Considerably reduced development processing time o Written commitments to meet specific timelines at different stages of entitlement process o Development code revisions to give more certainty on development review process o City investments in new technology to facilitate expedited processing o Ombudsman program o Progress on Smart City strategic plan o Rapid Response / Development Triage teams B. Establish a team consisting of key City department representatives with a focus on identifying and instituting ways of expediting business relocations and expansions (entitlements, permitting, etc.), and helping to ensure a culture of overall business friendliness within the City. 10.10.a Packet Pg. 177 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 35 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments • The City of Menifee’s Economic Development Department won an award for Streamline Menifee, which is an initiative that is aimed at improving the timing and process of development, while enhancing customer service efforts for residents and customers of the City. (https://www.cityofmenifee.us/ArchiveCenter/ViewFile/Item/2802) • City’s “One Stop” permitting office is now the “Zero Stop Shop” (entirely virtual permitting center): “Skip the line, go on-line” • Launched Developer Stakeholder Group (DSG) – has been meeting quarterly (may increase frequency to monthly) The following COVID-19 initiatives support the City’s development streamlining efforts: • Worked with the Development Team on permit extensions and project concerns • Worked with Finance on waiving business license fees for portion of FY 19/20 and 20/21 • Outreach to struggling businesses, reaching out to businesses, searching for status, feedback, and needs • Virtual City Hall and online submittals 10. PLACEMAKING A. Review the planning and development status of Town Center with respect to the potential for reinforcing its role as a focus for the community: with public spaces, for welcoming visitors, landmark structures, etc. • New development code includes design guidelines (based on input from a stakeholder group) specifically intended to enhance sense of place in the community • Implemented new Citywide signage program (50% complete) Marketing efforts relevant to placemaking include: • Promoted placemaking ads focused on recruiting unique eateries (placed ad in the Inland Empire Magazine) (https://www.dropbox.com/s/gjet667lwf0qxcb/Menifee_InlandEmpire B. Review and inventory other notable places in the community, based on conditions such as historic character and associations, potential for revitalizing a business area, or areas with unique natural features that might be enhanced, such as drainageways for example. 10.10.a Packet Pg. 178 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 36 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments Magazine_FullPageAd_8.375x10.875_2020_UniqueEateries_FINALHR.p df?dl=0) • Promoted placemaking ads focused on recruiting unique breweries (placed ad in the West Coaster Magazine) (https://www.dropbox.com/s/yojmxzbagzkjmcu/Menifee_WestCoaster _FullPageAd_8.125x10.5_DISTILLERY_FINALHR1%20%283%29.pdf?dl=0) The following COVID-19 initiatives support the City’s placemaking efforts: • Developing a Menifee Magazine for business and city lifestyle information (in proofing now) • Developed a SHOP LOCAL website for Menifee Forward to promote businesses, jobs and promotions C. Consider expanding the range of special events in the city, focusing on events that have strong potentials to reinforce placemaking efforts. • Continuing to build on successful special events programs including: o ABCDE (“Anything Brewed, Crushed, Distilled or Eaten”) event in new MSJC stadium o Music and arts festival o Artisan Nights at Sun City Shopping (quarterly) 11. INFRASTRUCTURE DEVELOPMENT COORDINATION A. See Section H, Candidate CEDS Projects, for updated list of CEDS candidate projects. [See Section H of this CEDS Annual Performance Report for an updated CEDS project list.] B. Coordinate with other agencies / service providers to ensure timely development of new infrastructure needed to accommodate development and business growth, and to monitor emerging technology-driven changes in infrastructure needs. C. Review the existing CIP to identify planned projects particularly supportive of economic development efforts as outlined in the CEDS, and for opportunities to re- prioritize such projects, as appropriate. 10.10.a Packet Pg. 179 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 37 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments D. Prioritize projects in future, new CIP documents based on priorities established in the CEDS. E. Coordinate with the business community and broadband service providers to identify immediate and longer-term needs for expanding broadband capacity, and prepare appropriate plans as needed. F. As part of comprehensive review of City’s development processing systems (Development Streamlining section above), ensure the City’s policies are accommodating to broadband expansion, while also protecting community aesthetics. 12. QUALITY OF LIFE ENHANCEMENTS A. Activities in this category need to be closely coordinated with the Real Estate Development, Placemaking, Entrepreneurial Development, and Workforce Development strategy groups, above, where the intent is to make improvements that enhance identity of the community in concert with assets that improve quality of life. (These activities are covered in other Strategy Groups above) B. If a visioning process is conducted as part of the generation of overall marketing materials for Menifee, prepare strategic directives that respond to key issues identified in the visioning process that also have a quality of life component. 10.10.a Packet Pg. 180 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 38 Strategy Group and Action Items from adopted 2019 CEDS) Year 1 (FY 2019-2020) Accomplishments C. Encourage residential development options across a range of housing types and prices (especially product types that are currently “missing” from Menifee’s housing mix), as appropriate to attract workers compatible with existing businesses and targeted industries to Menifee, including young professionals and technology workers and higher-income earners. This can also contribute to economic diversification within the community. The City’s role in this can be limited to maintaining the appropriateness of planning and zoning documents, making economic development promotional material available to homebuilders as well as other developers, and assisting homebuilders who add amenities above and beyond requirements of City standards, through the Development Streamlining process outlined above. • Continued to explore options for expanding housing choices in Menifee, through multiple channels including “Menifee Masters” (program for residential real estate agents that focuses on attracting higher-income residents) • City is currently updating Housing Element and will update General Plan next year A Complete List of COVID-19 Resources for Businesses: COVID-19 Programs Developed Menifee CARES Recovery Program – an umbrella program that unites all efforts to assist with not only the Pandemic, but disasters that may come in the future Created Menifee Cares Recovery website, compiling resources on the website to help business community-updating information and resources daily (Website has been updated more than 435 times) Developed and administered MeniFREEwards Restaurant Takeout Program and extended program (4/03/2020 and 9/25/2020) Created a #ShopLocal Program soon to be announced as Menifee Forward w/press Partnered with the Community Development Department to roll-out the Menifee CARES Grant Developed a Tier Business Loan program should it be needed Developed a cross-over program from HUD to COVID-19 funding to assist businesses because of qualification and viability concerns Developed with the Community Development Dept Outdoor Temporary Dining Permit, template application and press 10.10.a Packet Pg. 181 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 39 A Complete List of COVID-19 Resources for Businesses: Developed with the Community Development Dept Outdoor Temporary Personal Service Permit, template application and press Developed and ran Menifee CARE Grant program for businesses up to $5,000 to assist with retention efforts related to COVID-19 Worked with the Development Team on permit extensions and project concerns Virtual City Hall and online submittals Worked with Finance on waiving business license fees for portion of FY 19/20 and 20/21 Promoted Take Out Tuesday Program on social media Developed Mask-Up Menifee Campaign - and developed posters passed out to Business to encourage customers to wear masks to change behavior to allow businesses to open sooner COVID-19 Publications Developed Resource Toolkit for residents and businesses, which has been updated regularly as new resources become available (Updated over 24 times) (only City with Toolkit) Produced a 24-page COVID-19 Community Guide (mailed to residents) (04/28/2020) Developed Business listing of who is open/closed and hours Menifee Matters included Econ Dev Business Highlights Sent letters to business/plazas, containing current City, County, and State resources along with Industry Guidelines for retailers (4/30/2020) COVID-19 Business Outreach Developing a SHOP LOCAL website for Menifee Forward to promote businesses Developed Yard Signs to support Menifee Businesses and local PD for chamber Regularly sending out Constant contact COVID-19 Briefs, sharing the current information and resources business and community may need (sent over 81 E-Blasts) Regularly reach out to all of our businesses via phone calls and/or email in regard to the new guidelines and current business operations Fielded calls from businesses regarding closures and guidelines (Received over 157 calls) Outreach to struggling businesses, reaching out to businesses, searching for status, feedback, and needs Researching grants from state and/or federal organizations to assist local businesses during COVID-19. Contact plaza/property owners to connect about businesses in trouble, and to convince them to work with businesses on rent (most did end up creating a program for April/May). Workshops on funding, SBA, Menifee CARES Grant, and resources available like PPP and EIDL. Business Impacts Surveys (4 times) to assess Business Climate in the City, and to get an idea of workshops needed and resources, and overall confidence of recovery (started first week of 3/20/20, and just ended 4th survey 7/30/20) Business Visit: visiting businesses Retail & Restaurant Guideline Expansion visit (5/26/2020) Developed Essential Business Mapping Tool for website to locate businesses 10.10.a Packet Pg. 182 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 40 A Complete List of COVID-19 Resources for Businesses: PODCAST “ECONversations”: Every Monday-SW EconDev Directors discussing resources, programs, issues and business tips (just had one with Economist Thornberg, next is with Am/Pac on funding for businesses) Business Visit: Menifee KEEP Business Impact Survey (06/24/20) (with Chamber) COVID-19 Statistics Total Number of COVID-19 Related Business Visits: 740 Total Number of COVID-19 Related Press Releases: 30 Total Number of COVID-19 Related Social Media Posts: 1,042 10.10.a Packet Pg. 183 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 41 G. Action Plan Priorities (Year 2) During Year 2 (FY 2020-2021) of the CEDS implementation, the City will continue to make progress on the Action Items detailed in the 2019 CEDS. Table 15, beginning on the following page, provides an outline of potential Year 2 implementation priorities for each CEDS Strategy Group. These priorities have been identified by City staff and reflect updated (September 2020) input from the CEDS Committee. 10.10.a Packet Pg. 184 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 42 Table 15 City of Menifee Economic Development Strategy (CEDS) Outline of Potential Priority Actions for Fiscal Year 2020-2021 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 1. ORGANIZATIONAL CAPACITY A. Establish overall implementation approach and milestones. • Submit Annual Performance Report to EDA on anniversary of CEDS approval • Continue to support advancement of regional Economic Development Corporation (EDC), including hiring of full-time EDC director to lead regional collaboration on Business Attraction and Foreign Direct Investment initiatives • Continue ongoing coordination with Workforce Development Board • Continue working with Riverside County Office of International Business to expand existing Foreign Trade Zone to encompass part of Menifee • Continue periodic (or as-needed) meetings with various partnering entities identified in CEDS B. Institutionalize a system of partners who will participate in CEDS implementation, and meet annually to provide update on process and progress. 2. MARKETING, GENERAL A. Develop research-based materials that demonstrate market advantages for both developing real estate and locating businesses in Menifee (including, as a high priority, a retail leakage study). • Based on recent retail, office and industrial market studies (and forthcoming hotel study), continue efforts (via Public Advertising Agency) to market development opportunities in Menifee, using the following types of collateral materials: • Brochure • Ad content • Marketing magazine • Contract for professional “lead generation” services (database development) for business attraction program • Continue retail tenant recruitment efforts via ICSC advertising and event participation B. Develop formal economic development marketing plan that reflects researched materials, building on the City’s existing marketing plans/initiatives. C. Coordinate messages promoting real estate development and industry targeting (for both local-serving businesses and employers). D. Review options for retaining a marketing specialist or consultant to develop a marketing program and related collateral materials. 10.10.a Packet Pg. 185 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 43 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 • Continue/expand ambassador program for brewery and distillery businesses • Expand City’s Economic Development staff to include up to 2 marketing specialists and 1 graphic artist • Aggressively promote the City’s ombudsman services (and “development triage”) as part of all marketing/communications with the business community Through Partnerships: Review marketing programs and materials used by economic development partners, locally and regionally, for message-consistency with Menifee programs/materials. • Continue to coordinate with neighboring cities to determine best practices for regional branding/marketing. A high priority for this regional effort should be marketing that results in lead generation for business attraction; if the regional consortium does not pursue an effective lead generation program, this should be pursued at the City level per the recommended action step above. 3. INDUSTRY TARGETING, LOCAL-SERVING BUSINESSES (RETAIL) A. Use data from research conducted for the CEDS and any additional research-based materials that have become available, to refine strategies for addressing retail leakage conditions in the City. Strategy should reflect the City’s competitive position with respect to commercial development characteristics (including market advantages / disadvantages) of surrounding communities. • Continue “Menifee Masters” program for residential real estate agents, as a general means of enhancing Menifee’s retail environment (by focusing on attracting higher-income residents); based on initial success of this program, consider expanding frequency of events (from annual to quarterly). • (See retail-oriented action items under Strategy Group 2 above, including ICSC participation, etc.) B. Implement retail tenant recruitment program, in partnership with interested property owners, as part of expanded marketing efforts. • Coordinate with Police Department to install license plate readers at shopping centers. • Assist interested shopping center owner(s) in applying for SBDC grants (or potentially other funding sources) for façade improvements 10.10.a Packet Pg. 186 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 44 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 4. INDUSTRY TARGETING, EMPLOYERS A. As part of the research-based documentation of market conditions in Menifee, and to help refine target-industry prospects: • Document how key industries have spread outward from the San Diego area towards Menifee and the surrounding region. • Explore opportunities for leveraging the presence of nearby airports as business attractors, by expanding awareness of companies/industries now taking advantage of those facilities, and other measures. • (See industrial lead-generation steps under Strategy Group 2 above) • Initiate focused outreach to major industrial real estate brokers in larger region (especially firms/brokers active in major target markets such as San Diego, Los Angeles, and Ontario (where available land is now becoming scarce), with the intent of putting Menifee on their radar screens for manufacturing and clean-industry tenants C. Incorporate specialized industry attraction themes including, for example, tourism and foreign direct investment (FDI). Consider developing an FDI strategic plan. D. Implement target industry marketing program in partnership with industrial property owners and regional economic development organizations. 5. EXISTING-BUSINESS RETENTION AND EXPANSION (BRE) A. Business Outreach. Utilize online surveys, business site visits and other typical economic development tools to expand communication with existing firms, to achieve any or all of the following purposes: • Aggressively promote the City’s ombudsman services as part of all communications with the business community 10.10.a Packet Pg. 187 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 45 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 • Identify any needs for business assistance and connect businesses with available support resources. • Probe their sense of locational advantages and disadvantages in Menifee, including such issues as the desirability of and potential for bringing key suppliers or business-service firms to the City. • Identify any needs for coordinating operational or expansion requirements with local regulatory bodies. • Based on new staffing resources, expand outreach to the following business types: o Restaurants o Entertainment (e-sports) o Hotels o Breweries • Expand “Menifee Walk” program (potentially through walkabouts with Chamber of Commerce) • Expand KEEP (Keep Existing Employers Profitable) program • Promote “Passport to Menifee” (small business loyalty) program • Participate in monthly Chamber of Commerce mixer events • Collaborate with Chamber of Commerce on special programs such as Innovation Month and Manufacturing Day (hosted facility tours for local schools/students) • Conduct additional “Mayor’s Industry Idea Exchange” events (3 per year, tied to CEDS target industries) • Conduct retail/entertainment survey of residents (to refine targeting efforts and support small business marketing) • Pursue media coverage of the above activities 10.10.a Packet Pg. 188 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 46 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 6. ENTREPRENEURIAL DEVELOPMENT A. Investigate extent to which existing programs/facilities in the City and region meet the needs for emerging entrepreneurs, recognizing the different types of support needed by local-consumer startups and tech-oriented startups. • Continue discussions with prospective partners for the creation of incubator facilities to serve Menifee-based entrepreneurs, including the following options: o Coordination with developers of new industrial projects in Menifee to identify potentials for incorporating incubator space in their plans o Collaboration with the adjacent City of Murrieta (Menifee is actively supporting Murrieta’s plans to expand its Innovation Hub to include wet lab facilities) o Co-branded (City/MSJC) maker space and/or incubator facility on campus (this concept has been delayed by the COVID-19 campus closure, but should be kept on the table as a longer- term option) B. As appropriate, investigate options for establishing incubator and/or business accelerator facilities in Menifee, working with partners. C. Explore ways the City can maximize its coordination with the business model of incubator operators and their tenant focus. 7. WORKFORCE DEVELOPMENT A. Workforce Development Coordination. Coordinate with local/regional educational and workforce-development organizations to ensure that available workforce training resources are in sync with the City’s business development efforts (including retention/expansion and findings of employer outreach) and industry targeting. • Support opening of Riverside County’s part-time workforce center at Menifee Senior Center • Build on success of Menifee Manufacturing Day (promotes career opportunities in advanced manufacturing) • Identify skills/training resources most needed by employers (during business walks and other outreach) • At Mayor’s Industry Idea Exchange events (listed under 5.A above): o Get input from employers about skill/training needs o Present information about WDB and SBDC resources available to the local business community 10.10.a Packet Pg. 189 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 47 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 8. REAL ESTATE DEVELOPMENT AND REVITALIZATION / REDEVELOPMENT A. Expand as necessary on the research-based materials described under the General Marketing function above to: a) document specific competitive conditions for key commercial areas within the community, and b) identify the need for types of space that will support employers, from small entrepreneurs to larger firms. • Leverage recently-completed commercial and industrial market studies in communications with brokers and developers (including CRE Brokers Group and Menifee Masters participants) • Focus on growing opportunities for e-commerce related industrial development (demand for this type of project has skyrocketed in the wake of COVID-19) • Align business attraction and industry targeting efforts with opportunities (building capacity) created by the new industrial projects currently being developed in Menifee B. Establish an outreach program to real estate developers active in Menifee and the region to directly promote the community and assess interests and receive feedback concerning development prospects. C. Review policies related to the Economic Development Corridor, specifically as this may relate to the potential for mixed-use development, or for otherwise encouraging development activity in general, but especially creative and engaging projects. D. Identify older commercial areas that may be suitable for, and benefit by, revitalization. Older commercial areas can sometimes be repurposed to uses that might be lacking in the community, for Menifee perhaps this is small spaces for startup companies. E. Create and market incentives for redevelopment / revitalization of older properties (potentially including non-financial incentives such as expedited entitlements and permit processing). F. As appropriate, contact the owners of commercial properties that might benefit from revitalization efforts to assess interest and potential partnerships or other 10.10.a Packet Pg. 190 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 48 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 forms of public support to achieve revitalization / redevelopment goals. 9. DEVELOPMENT STREAMLINING A. Audit current development approval processes and investigate options for expediting approvals (including expanded use of program-level environmental impact reports; online permitting tools, etc.). • Aggressively promote the tremendous progress the City has made over the past year in terms of development streamlining: o Considerably reduced development processing time o Written commitments to meet specific timelines at different stages of entitlement process o Development code revisions to give more certainty on development review process o City investments in new technology to facility expedited processing o Ombudsman program o “One Stop Shop at City Hall (which will eventually transition to a “no stop” online system) o Progress on Smart City strategic plan (work expected to start soon) o Potential hiring of a Chief Innovation Officer within City Manager’s Office o Rapid Response / Development Triage teams • Seek out quotable “kudos” from the development community that can be referenced in marketing efforts • Investigate the “Fast Track” program adopted by the City of Menifee to determine that the new (and award-winning) Streamline Menifee program provides all of the same benefits to developers in terms of certainty of the timing of approval/entitlement process B. Establish a team consisting of key City department representatives with a focus on identifying and instituting ways of expediting business relocations and expansions (entitlements, permitting, etc.), and helping to ensure a culture of overall business friendliness within the City. 10.10.a Packet Pg. 191 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 49 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 • Continue to support and grow a “culture” of business/development friendliness among all Menifee development stakeholders (City staff, partner organizations and elected officials) and develop consistent “messaging” around this culture 10. PLACEMAKING A. Review the planning and development status of Town Center with respect to the potential for reinforcing its role as a focus for the community: with public spaces, for welcoming visitors, landmark structures, etc. • Implement Citywide signage program B. Review and inventory other notable places in the community, based on conditions such as historic character and associations, potential for revitalizing a business area, or areas with unique natural features that might be enhanced, such as drainageways for example. C. Consider expanding the range of special events in the city, focusing on events that have strong potentials to reinforce placemaking efforts. • Once COVID-related restrictions on large group gatherings are lifted, continue to build on successful special events programs including: o ABCDE (“Anything Brewed, Crushed, Distilled or Eaten”) event in new MSJC stadium) o Music and arts festival o Artisan Nights at Sun City Shopping (quarterly) 11. INFRASTRUCTURE DEVELOPMENT COORDINATION A. See Section H, Candidate CEDS Projects, for updated list of CEDS candidate projects. • Continue to prioritize the City’s CIP/infrastructure investments based on potential economic development benefits. • In tandem with Menifee’s “Smart City” initiative, pursue the development of “second to none” internet infrastructure/connectivity as a high priority Citywide B. Coordinate with other agencies / service providers to ensure timely development of new infrastructure needed to accommodate development and business growth, and to monitor emerging technology-driven changes in infrastructure needs. C. Review the existing CIP to identify planned projects particularly supportive of economic development efforts 10.10.a Packet Pg. 192 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 50 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 as outlined in the CEDS, and for opportunities to re- prioritize such projects, as appropriate. • Prioritize infrastructure investments (especially stormwater facilities) in areas of the City where employment-generating development is most imminent: o Town Center / Courthouse area o MSJC area o Northern Gateway o Southern Gateway (proximity to Murrieta’s medical corridor) D. Prioritize projects in future, new CIP documents based on priorities established in the CEDS. E. Coordinate with the business community and broadband service providers to identify immediate and longer-term needs for expanding broadband capacity, and prepare appropriate plans as needed. F. As part of comprehensive review of City’s development processing systems (Development Streamlining section above), ensure the City’s policies are accommodating to broadband expansion, while also protecting community aesthetics. 12. QUALITY OF LIFE ENHANCEMENTS A. Activities in this category need to be closely coordinated with the Real Estate Development, Placemaking, Entrepreneurial Development, and Workforce Development strategy groups, above, where the intent is to make improvements that enhance identity of the community in concert with assets that improve quality of life. • In the wake of COVID-19, evaluate potential needs for: o Expanded access to outdoor recreation areas o Expanded outdoor dining options for local restaurants B. If a visioning process is conducted as part of the generation of overall marketing materials for Menifee, prepare strategic directives that respond to key issues identified in the visioning process that also have a quality of life component. 10.10.a Packet Pg. 193 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 51 Strategy Group and Action Items from adopted 2019 CEDS) Recommended Priority Steps in Fiscal Year 2020-2021 C. Encourage residential development options across a range of housing types and prices (especially product types that are currently “missing” from Menifee’s housing mix), as appropriate to attract workers compatible with existing businesses and targeted industries to Menifee, including young professionals and technology workers and higher-income earners. This can also contribute to economic diversification within the community. The City’s role in this can be limited to maintaining the appropriateness of planning and zoning documents, making economic development promotional material available to homebuilders as well as other developers, and assisting homebuilders who add amenities above and beyond requirements of City standards, through the Development Streamlining process outlined above. • Continue to explore options for expanding housing choices in Menifee, through the following channels: o City Council study session o Forthcoming General Plan update o Market of new development / housing products in Town Center o Menifee Masters program 10.10.a Packet Pg. 194 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive 52 H. Candidate CEDS Projects (Updated List) The City’s updated list of candidate CEDS projects is provided below. The updated list includes two new projects as well as refined cost estimates for several of the original (2019) projects. Title Project Description Estimated Cost Identified Local Funding Amount (1) Remaining Funding Gap Scott Road Widening The project will consist of widening Scott Road from the I‐ 215 to the western City limits. The existing 2-lane road will be widened to 4 lanes with a 12' median and 8' shoulders. $28,870,000 $8,300,000 $20,570,000 McCall Boulevard Interchange This project phase will consist of the final environmental, design, and ROW acquisition. The proposed bridge widening will improve the off and on ramps, improving circulation city‐wide. Next Phase is the construction of the Interchange bridge. $35,168,230 $14,077,000 $21,091,230 Garbani Road Interchange Construct new 4-lane (2 lanes each direction) and ramps. Includes Garbani Road from Bradley to I-215. $60,560,000 $60,560,000 Holland Road Overpass The Project is located on Holland Road from Haun to Hanover Roads. The project will provide an additional East to West connectivity route over Interstate 215, relieving traffic congestion from Newport and Scott Road. The additional route will help alleviate traffic driving on Newport Road from Interstate 215 onto Holland Bridge. $25,928,365 $22,028,365 $3,900,000 Bradley Bridge over Salt Creek The project is located at the Salt Creek Channel and Bradley Road. This bridge project will eliminate flood road closures on Bradley Road during rain events. $10,200,000 $7,150,000 $3,050,000 Highway 74 grade separation (for new alignment) Widen Ethanac from Sherman to Mathews 2 to 4 lanes including RR grade separation. $69,000,000 $69,000,000 10.10.a Packet Pg. 195 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 53 Title Project Description Estimated Cost Identified Local Funding Amount (1) Remaining Funding Gap Parking Structure Parking Structure to be included in the Menifee Town Center to assist with parking at all retail amenities within MTC and assist with regional events hosted at Central Park located within Menifee Town Center. (2) $9,632,000 $9,632,000 Haun Corridor Widening Widen the Haun Corridor to full improvements between Newport and Scott, to open up development along the prime, freeway-frontage land within the EDC. $13,000,000 $13,000,000 Goetz Widening Widen Goetz south of Vista to the City limits to ignite development in the disadvantaged community of Quail Valley. $18,000,000 $18,000,000 East EDC Gateway Specific Plan Develop a Specific Plan for the 300 acres of land within the East EDC Gateway area. $250,000 $250,000 Highway 74 Specific Plan Create a Specific Plan to complement the General Plan along the Highway 74 Corridor to spur development for industrial uses along the highly-traveled corridor to generate job creation. $250,000 $250,000 Northern Gateway Specific Plan Create a Specific Plan to complement the General Plan within the Northern Gateway in the Economic Development Corridor (EDC) to spur business park, industrial and commercial development to assist with job creation in the disadvantaged community of Romoland. $250,000 $250,000 Northern Gateway infrastructure improvements Address water, sewer, drainage and road issues to develop the internal backbone infrastructure needed to support targeting the area for business park, industrial and commercial development. $15,000,000 to $20,000,000 $15,000,000 to $20,000,000 Southern Gateway Specific Plan Research & Tech Hub Create a Research and Technology Master Plan that complements the General Plan to invigorate a $250,000 $250,000 10.10.a Packet Pg. 196 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 54 Title Project Description Estimated Cost Identified Local Funding Amount (1) Remaining Funding Gap Research & Tech Hub to spur high quality job creation. Southern Gateway infrastructure improvements Address water, sewer and road issues within the EDC and industrial/commercial zoned areas; develop the internal backbone infrastructure needed to spur business park, industrial, and office development within the Southern Gateway. $8,000,000 to $10,000,000 $8,000,000 to $10,000,000 Antelope Road Widening Widen Antelope Road from Mapes to Rouse Road $7,040,650 $7,040,650 Mapes Road Widening Widen Mapes Road from Sherman to Briggs Rd $6,316,200 $6,316,200 Menifee Road Widening Widen Menifee Road from Rouse to Varela Lane & Mapes Road to SR 74 $7,673,325 $7,673,325 Palomar Road Widening Widen Palomar Road from Mapes Road to SR 74 $1,071,375 $1,071,375 Watson Road Widening Widen Watson Road from Sherman Rd to Menifee Road $5,614,250 $5,614,250 Menifee Master Drainage Plan This is a planning document that that will collect existing drainage infrastructure, identify drainage deficiencies, and provide recommendations for future drainage infrastructure projects that can be built by the City or private developments. $483,220 $483,220 Auto Center Loop Construction This project will construct the main thorough fare through the proposed auto mall within the City. $10,000,000 $10,000,000 ESTIMATED COSTS TOTAL (3) $339,557,615 $44,405,365 $288,002,250 Notes: 1. Maximum dollars available through TUMF. 2. Cost estimate based on space for 400 vehicles at $21,500/space + 12% design fees. 3. Total costs assume high end of items for which costs are provided in ranges. 10.10.a Packet Pg. 197 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 55 I. Qualifying Census Tracts The tables in Appendix A provide updated Census (ACS) data to identify the individual census tracts within the CEDS area that would potentially qualify for EDA investment based on unemployment rates and per capita income levels. Consistent with the previous-year calculations in the 2019 CEDS, the updated tables reflect the following qualifying criteria: • 24-month unemployment rate is at least one percentage point greater than the national average unemployment rate • Per capita income is not more than 80% of the national average per capita income 10.10.a Packet Pg. 198 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 56 Appendix A: Updated Census Data 10.10.a Packet Pg. 199 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 57 National Outlook Source: U.S. Census, 2017 and 2018 American Community Survey 5-Year Estimates Menifee Target Area within Riverside County Source: U.S. Census, 2014-2018 American Community Survey 5-Year Estimates Name of City Population City of Menifee $32,621 U.S. Unemployment Per Capita 2017 6.6% 2017 $31,177 2018 5.9% 2018 $32,621 24- Month Average 6.3% 24- Month Average $31,899 California Unemployment Per Capita 2017 7.7% 2017 $33,128 2018 6.7% 2018 $35,021 24- Month Average 7.2% 24- Month Average $34,075 County of Riverside Unemployment Per Capita 2017 9.9% 2017 $25,700 2018 8.6% 2018 $27,142 24- Month Average 9.3% 24- Month Average $26,421 10.10.a Packet Pg. 200 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 58 Menifee Target-Area within Riverside County Source: U.S. Census, 2014-2018 American Community Survey 5-Year Estimates Census Tracts within Riverside County (Indicating Menifee Target Area) Source: U.S. Census, 2014-2018 American Community Survey 5-Year Estimates U.S. Unemployment 5.9% Per Capita Income $32,621 24-month unemployment rate is at least 1 % point greater than the nat'l average unemployment The per capita income (PCI) is not more than 80 percent of the national average PCI. Census Tract Unemployment Per Capita Qualifying Qualifying Census Tract 427.08 8.8% $24,000 TRUE TRUE Census Tract 427.09 3.5% $27,165 FALSE FALSE Census Tract 427.11 14.2% $27,343 TRUE FALSE Census Tract 427.16 3.7% $40,016 FALSE FALSE Census Tract 427.17 6.3% $20,462 TRUE TRUE Census Tract 427.24 12.9% $25,791 TRUE TRUE Census Tract 427.26 6.5% $30,824 TRUE FALSE Census Tract 427.28 5.0% $27,860 FALSE FALSE Census Tract 427.29 5.6% $26,609 FALSE FALSE Census Tract 427.30 7.5% $18,548 TRUE TRUE Census Tract 427.31 9.1% $22,751 TRUE TRUE Census Tract 427.32 7.5% $26,076 TRUE TRUE Census Tract 427.33 6.4% $29,335 TRUE FALSE Census Tract 427.37 5.6% $32,062 FALSE FALSE Census Tract 427.38 11.5% $28,594 TRUE FALSE Census Tract 427.39 8.0% $31,068 TRUE FALSE Census Tract 427.40 17.1% $29,710 TRUE FALSE Census Tract 427.41 15.6% $31,388 TRUE FALSE Census Tract 427.42 4.7% $27,117 FALSE FALSE Census Tract 427.43 8.2% $29,082 TRUE FALSE Census Tract 432.35 10.7% $29,914 TRUE FALSE Census Tract 432.79 8.2% $28,033 TRUE FALSE Census Tract 507 5.1% $29,829 FALSE FALSE U.S. Unemployment Per Capita 5.9% $32,621 Menifee Population: 88,515 Unemployment Per Capita 2014-2018 8.1% 2014-2018 $27,680 10.10.a Packet Pg. 201 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive Economic Development Strategy Annual 59 Menifee CEDS Qualified Census Tracts Source: TNDG; US Census 10.10.a Packet Pg. 202 Attachment: 2020 CEDS Annual Performance Report (Menifee) 10-8-2020, v.2 (2687 : Comprehensive CITY OF MENIFEE SUBJECT: Final Map for Tentative Tract Map 37576, Meadow Run by Meritage Homes of California, Inc. MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Haile Ford, Senior Engineer REVIEWED BY: Yolanda Macalalad, Assistant City Engineer APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION 1. Approve the Bond Agreement for Road and Drainage, and Water and Sewer System Improvements for Tract Map 37576, located at the southeast corner of Bradley Road and Holland Road; and 2. Approve the Bond Agreement for the placement of Survey Monuments; and 3. Approve and authorize the filing of the Final Map for Tentative Tract Map 37576. DISCUSSION Tentative Tract Map 37576 (TTM 37576) is a proposed subdivision of 17 gross acres of land into 65 lots for single-family residential use, located at the southeast corner of Bradley Road and Holland Road, as shown on the attached Tentative Tract Map. Meritage Homes of California, Inc., the owner of Tract Map 37576, is requesting the approval of the Subdivision Bond Agreements as required by the project’s conditions of approval. The Bond Agreements require that improvement securities are posted to guarantee the completion of the required improvements within 24 months from Council approval date. Staff reviewed the request and has determined that the final map and associated Bond Agreements meet the requirements of the project conditions; therefore, staff recommends approval of the Final Map for recordation. A summary of the bonds being posted to guarantee the completion of the required improvements is shown on the following page: A. Tract Map 37576 Improvements: 10.11 Packet Pg. 203 City of Menifee Staff Report Final Map for Tentative Tract Map 37576, Meadow Run October 21, 2020 Page 2 of 2 Improvement Security Faithful Performance Material & Labor Road and Drainage LICX1195845 $1,804,000.00 $902,000.00 Water System LICX1195845 $380,500.00 $190,250.00 Rec. Water System LICX1195845 $99,500.00 $49,750.00 Sewer System LICX1195845 $335,500.00 $167,750.00 Monument 609203154 $34,200.00 Total $2,653,700.00 $1,309,750.00 FISCAL IMPACT There is no fiscal impact to the City’s General Fund in processing the agreements and bonds. The developer paid the necessary fees and deposits in preparing and reviewing the agreement and associated bond documents. The operation and maintenance of the public improvements once accepted will be funded by the assessments and special taxes that will be collected from this development for being annexed into the City’s special maintenance district. ATTACHMENTS 1. Tract Map 37576 2. Bonds and Agreements 10.11 Packet Pg. 204 EXHIBIT A – TRACT MAP 37576 10.11.a Packet Pg. 205 Attachment: Tract Map 37576 (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.a Packet Pg. 206 Attachment: Tract Map 37576 (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.a Packet Pg. 207 Attachment: Tract Map 37576 (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.a Packet Pg. 208 Attachment: Tract Map 37576 (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.a Packet Pg. 209 Attachment: Tract Map 37576 (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.a Packet Pg. 210 Attachment: Tract Map 37576 (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.a Packet Pg. 211 Attachment: Tract Map 37576 (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.a Packet Pg. 212 Attachment: Tract Map 37576 (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.a Packet Pg. 213 Attachment: Tract Map 37576 (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) EXHIBIT B – BONDS AND AGREEMENTS 10.11.b Packet Pg. 214 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 215 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 216 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 217 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 218 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 219 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 220 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 221 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 222 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 223 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 224 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) AGREEMENT FOR THE CONSTRUCTION OF ROAD AND DRAINAGE IMPROVEMENTS Tract Map 37576, IP19-047 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 Meritage Homes of California, Inc., hereinafter called Developer. WITNESSETH: FIRST: Developer, as part of the City’s consideration of the final map for that certain land division known as IP19-047 , 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 Public Works Director / City Engineer, a copy of which are on file in the office of the City of Menifee’s Public Works / Engineering Department, and do all work incidental thereto in accordance with the standards set forth in City- adopted ordinances 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 Public Works Director / City Engineer, and shall not be deemed complete until approved and accepted in writing as complete by the Public Works Director / 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 Public Works Director / 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 One Million Eight Hundred and Four Thousand and no/100, Dollars, $ 1,804,000.00, (“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 Public Works Director / 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 judgement, 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, 10.11.b Packet Pg. 225 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 226 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 227 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 228 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 229 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 230 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 231 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 232 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 233 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 234 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 235 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 236 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 237 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 238 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 239 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 240 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 241 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 242 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 243 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 244 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 245 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 246 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) 10.11.b Packet Pg. 247 Attachment: Bonds and Agreements (2686 : Final Map for Tentative Tract Map 37576, Meadow Run) CITY OF MENIFEE SUBJECT: Fiscal Year 2020/21 City Street Sweeping Agreement with CR&R Inc. MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Margarita Cornejo, Financial Services Manager REVIEWED BY: Jonathan Nicks, Community Services Director APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION 1. Approve Maintenance Services Agreement in the not-to-exceed amount of $55,099.51 with CR&R Inc. for FY 20/21 Street Sweeping Services, 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). DISCUSSION To the present date a comprehensive street sweeping program assists the City of Menifee in complying with the requirements of the National Pollutant Discharge Elimination System (NPDES) permit by removing pollutants, debris and sediments on the City streets which otherwise might enter the storm drain system. Water entering the storm drain system goes directly to creeks, rivers, lakes, and beaches. Prior to incorporation, the street sweeping services for existing streets within the Menifee community were provided/managed by the County of Riverside through CSA 152, which collects annual assessments via property taxes to fund such services. When the City incorporated in 2008, at that time the City elected to not detach from CSA 152 for street sweeping services and continue with the County, as the young City did not have the staffing and/or programs in place to provide such services locally. Existing streets within the City of Menifee have continued to receive street sweeping services through CSA 152 (County of Riverside). However, new streets added since incorporation are not eligible to be annexed into CSA 152; the City is responsible for providing street sweeping services for these additions. For newly developed areas, funding for street sweeping services are funded through special tax districts (CFD 2012-1, CFD 2015-2, CFD 2014-1, etc). Older areas, not funded within CSA 152 or the City’s special tax districts, are funded by Gas Tax. 10.12 Packet Pg. 248 City of Menifee Staff Report FY20/21 Contract for Street Sweeping Services October 21, 2020 Page 2 of 2 The City’s Public Works Department manages street sweeping services areas of responsibility (not a part of CSA 152) on City public streets. Historically, the City has contracted for street sweeping services with CR&R Incorporated. CR&R Inc. is contracted by the County of Riverside for its street sweeping services, including CSA 152 areas within Menifee, and is able to provide more competitive pricing by directly doing the street sweeping services vs. subcontracting out, and economies of scale. Compared to Fiscal Year 2019/20 cost ($50,463) for receiving such services, the Fiscal Year 2020/21 represents a slight increase in the estimated amount of $4,631.51 which can be attributed to the following two reasons: 1. Addition of new street locations to receive street sweeping services during the Fiscal Year 2020/21 period, and; 2. Annual Consumer Price Index (CPI) adjustment to the applicable per curb mile rate. The applied CPI adjustment increase represents a 2.9% increase, changing the rate from $19.77 to $20.34 and the Rate per Hour for Other Associated Work (OAW) shall change from $84.26 to $86.70. FISCAL IMPACT The fiscal impact of the proposed Maintenance Services Agreement with CR&R, Inc. for Fiscal Year 20/21 will be $55,099.51. Funding for such services will be covered with available funds included within the adopted Fiscal Year 20/21 budget as follows: Fund Name Account # Total Annual CFD 2012-1 (AMR) 490-4558-52700 $9,013.97 CFD 2015-2, Zone 5 634-4558-52700 205.03 CFD 2015-2, Zone 12 641-4558-52700 5,408.52 CFD 2015-2, Zone 17 646-4558-52700 58.58 2017-1 494-4558-52700 1,444.95 Gas Tax 200-4552-52700 38,696.51 CFD 2015-2, Zone 19 648-4558-52700 271.95 TOTAL: $55,099.51 No additional budget appropriation action(s) is required. ATTACHMENTS 1. CR&R AGREEMENT 10.12 Packet Pg. 249 2859/031858-0001 12775493.1 a05/13/20 CITY OF MENIFEE CONTRACTOR AGREEMENT FISCAL YEAR 2020/21 STREET SWEEPING SERVICES THIS CONTRACTOR 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 CR&R INCORPORATED, a California Corporation (“Contractor”). City and Contractor 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, Contractor 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”). Contractor 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 July 1, 2020 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 Contractor 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. Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the Services contemplated herein and, in light of such status and experience, Contractor 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 Contractor is engaged in the geographical area in which Contractor practices its profession and to the sole satisfaction of the Contract Administrator. 1.3 Assignment of Personnel. Contractor 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, Contractor shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons. 1.4 Time. Contractor shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Contractor’s obligations hereunder. 1.5 Authorization to Perform Services. Contractor 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. 10.12.a Packet Pg. 250 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -2- SECTION 2. COMPENSATION. City hereby agrees to pay Contractor a sum not to exceed FIFTY FIVE THOUSAND NINETY NINE DOLLARS AND FIFTY ONE CENTS DOLLARS ($55,099.51) notwithstanding any contrary indications that may be contained in Contractor’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 Contractor 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 Contractor for the Services rendered pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Contractor shall not bill City for duplicate services performed by more than one person. 2.1 Invoices. Contractor 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 Contractor and each employee, agent, and subcontractor of Contractor performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed; g. The Contractor Representative’s signature Invoices shall be submitted to: City of Menifee Attn: Accounts Payable 29844 Haun Road Menifee, CA 92586 10.12.a Packet Pg. 251 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -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 Contractor. 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 Contractor 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 Contractor 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 Contractor 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. Contractor 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 Contractor terminates this Agreement pursuant to Section 8, City shall compensate Contractor 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. Contractor 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, Contractor shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. 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, Contractor, at its own cost and expense, shall procure the types and amounts of insurance checked below and provide Certificates of Insurance, indicating that Contractor has obtained or currently maintains insurance that meets the requirements of this section and which is satisfactory, in all respects, to City. Contractor shall maintain the insurance policies required by this section throughout the term of this Agreement. 10.12.a Packet Pg. 252 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -4- The cost of such insurance shall be included in Contractor’s compensation. Contractor shall not allow any subcontractor, consultant, or other agent to commence work on any subcontract until Contractor 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. Contractor acknowledges the insurance policy must cover inter-insured suits between City and other Insureds. 4.1 Workers’ Compensation. Contractor 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 Contractor 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, Contractor 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 Contractor, 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. Commercial General Liability. Contractor, at its own cost and expense, shall maintain commercial general liability insurance for the term of this Agreement on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than TWO MILLION DOLLARS ($2,000,000.00) per occurrence. If 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. b. Automobile Liability. Contractor, at its own cost and expense, shall maintain automobile liability insurance for the term of this Agreement covering any auto (Code 1), or if Contractor has no owned autos, hired (Code 8), and non-owned autos (Code 9), with limit no 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 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 10.12.a Packet Pg. 253 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -5- therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, and non-owned automobiles. c. 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. d. 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 Contractor to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers. 4.3 DOES NOT APPLY TO FISCAL YEAR 2020/21 STREET SWEEPING SERVICES 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, Contractor 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 (FISCAL YEAR 2020/21 STREET SWEEPING 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 Contractor.. c. Notice of Reduction in or Cancellation of Coverage. 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. 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 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 10.12.a Packet Pg. 254 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -6- 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. Contractor 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, Contractor 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 Contractor 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. Contractor 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 Contractor 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 Contractor’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 Contractor to stop work under this Agreement or withhold any payment that becomes due to Contractor hereunder, or both stop work and withhold any payment, until Contractor demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement. SECTION 5. INDEMNIFICATION. 10.12.a Packet Pg. 255 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -7- To the fullest extent permitted by law, Contractor 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 Contractor fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment, 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 Contractor or by any individual or entity for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor. 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 CONTRACTOR. 6.1 Independent Contractor. At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor 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 Contractor accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor 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. Contractor 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 Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for 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. 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. 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 10.12.a Packet Pg. 256 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -8- 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. 7.3 Licenses and Permits. Contractor represents and warrants to City that Contractor 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. Contractor represents and warrants to City that 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 to practice their respective professions. In addition to the foregoing, Contractor 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 Contractor. 8.2 Termination by Contractor. Contractor may cancel this Agreement upon 30 days’ written notice to City. 8.3 Consequences of Termination. In the event of termination, Contractor shall be entitled to compensation for the Services performed up to the date of termination; City, however, 10.12.a Packet Pg. 257 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -9- may condition payment of such compensation upon Contractor delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Contractor or prepared by or for Contractor 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. Contractor understands and agrees that, if City grants such an extension, City shall have no obligation to provide Contractor 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 Contractor 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 Contractor recognize and agree that this Agreement contemplates personal performance by Contractor and is based upon a determination of Contractor’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 Contractor. Contractor may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Contractor shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in Contractor’s proposal, without prior written approval of the Contract Administrator. In the event that key personnel leave Contractor’s employ, Contractor 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 Contractor shall survive the expiration or termination of this Agreement. 8.8 Options upon Breach by Contractor. If Contractor 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 Contractor pursuant to this Agreement; c. Retain a different Contractor to complete the Services described in Exhibit A; and/or d. Charge Contractor 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 Contractor pursuant to Section 2 if Contractor had completed the Services. SECTION 9. KEEPING AND STATUS OF RECORDS. 10.12.a Packet Pg. 258 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -10- 9.1 Records Created as Part of Contractor’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 Contractor prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of City. Contractor 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 Contractor. City and Contractor 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 DOES NOT APPLY TO STREET SWEEPING. 9.3 Contractor’s Books and Records. Contractor 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 Contractor 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 Contractor 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. 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. 10.12.a Packet Pg. 259 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -11- 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 Contractor Representative. All matters under this Agreement shall be handled for Contractor by J. Alex Braicovich, Senior Regional Vice President (“Contractor’s Representative”). The Contractor’s Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Agreement. The Contractor’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, Allen Yun, Public Works Manager (“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, Contractor shall not accept direction or orders from any person other than the Contract Administrator or his designee. 10.9 Notices. Any written notice to Contractor shall be sent to: CR&R INCORPORATED ATTN: J. Alex Braicovich, Senior Regional Vice President P.O. BOX 125 STANTON, CA 0 Any written notice to City shall be sent to the Contract Administrator at: City of Menifee 29844 Haun Road Menifee, CA 92586 Attn: Allen Yun, Public Works Manager with a copy to: City Clerk City of Menifee 10.12.a Packet Pg. 260 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -12- 29844 Haun Road Menifee, CA 92586 10.10 DOES NOT APPLY TO FISCAL YEAR 2020/21 STREET SWEEPING SERVICES 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 Contractor 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. Contractor 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 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. 10.18 No Undue Influence. Contractor 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 10.12.a Packet Pg. 261 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -13- financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Contractor, or from any officer, employee, or agent of Contractor, 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] 10.12.a Packet Pg. 262 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -14- 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 CONTRACTOR J. Alex Braicovich, Senior Regional Vice President David E. Fahrion, President [Note: 2 officer’s signatures required if Contractor is a corporation] 10.12.a Packet Pg. 263 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 EXHIBIT A EXHIBIT A SCOPE OF SERVICES Service shall include street sweeping services in the not to exceed amount of FIFTY FIVE THOUSAND NINETY NINE DOLLARS AND FIFTY ONE CENTS DOLLARS ($55,099.51), and as further outlined in the following page(s). 10.12.a Packet Pg. 264 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a05/13/20 -2- Exhibit A Scope of Services City of Menifee Street Sweeping Beginning July 1, 2019, and continuing until the expiration or termination of this agreement, Contractor shall provide street sweeping services in accordance with the terms and conditions set forth below. 1) Manner of Service Contractor shall provide a complete sweep of approximately One Hundred Ten Point Eighty Eight (110.88) curb miles of City streets twice per month and approximately Seven Point Ninety-Six Miles (7.96) curb miles of City streets one time every other month within the city limits of City. The proposed sweeping locations and frequencies are outlined within the street sweeping map, attached hereto as Exhibit "B". Contractor shall be responsible for sweeping all curbs and gutters (excluding center medians) of the assigned subject streets. Contractor shall obey all laws governing the operation of the sweepers on a public street and shall perform its operations so that sweepers traverse their routes in the normal direction of traffic. 2) Water Contractor shall obtain water from approved hydrants. Water costs shall be paid by the Contractor. The proper volume and pressure shall be supplied by the sweeper at all times for adequate dust control during the sweeping operation. 3) Sweeper Speed Contractor shall operate the sweepers at a speed of not more than an average of nine (9) miles per hour when sweeping or when the sweeper brooms are down, unless Contractor can demonstrate that the sweeper can operate efficiently and safely at a higher speed. 4) Sweeper Equipment All sweeper equipment (vacuums or brooms) used in City shall be compliant with AQMD Regulations 1186 and 1186.1 5) Width of Sweeper Path Contractor shall sweep a path, with curbside broom down, with a width of approximately eight (8) feet unless parked vehicles, structures , or other objects prohibit safe sweeping. The path shall begin at the face of the curb, and include the flow line of the gutter. Unless blocked by parked cars or containers, the face 10.12.a Packet Pg. 265 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a00/00/00 EXHIBIT A of the curb and gutter shall always be included within the sweeper path. On those streets with no curb, the width of the sweeper path shall be not less than approximately eight (8) feet measured from the painted white line along the edge of the pavement. 6) Frequency of Service Street Sweeping frequencies shall be completed as outlined below and shown on the attached map in Exhibit B: Streets shown in BLUE, LIGHT BLUE, PURPLE, FUSCHIA, RED and LIGHT PINK on the attached map shall be swept two times per month: • 55.71 Centerline Miles • 110.88 Curb Miles (2x Centerline Miles) • Total Curb Miles Swept per month: 221.76 Streets shown in GREEN on the attached map shall be swept every· other month (six times per calendar year): Additional area south of Scott Road to be swept 6 times per year. • 3.98 Centerline Miles • 7.96 Curb Miles (6x per year) • Total Curb Miles Swept every other month: 7.96 Frequency of Service: Map Color Funding Frequency of Sweeping Total Centerline Miles Total Curb Miles Total Curb Miles Swept per Month Monthly Rate at $20.34 per mile (2x Centerline Miles) (Frequency x Total Curb Miles) Blue CFD 2012-1 (AMR) Twice a Month 8.46 16.92 33.84 $688.31 Blue (New 20/21) CFD 2012-1 (AMR) Twice a Month 0.77 1.55 3.09 $62.86 Light Pink CFD 2015-2, Zone 5 Twice a Month 0.42 .42 (Only west side of Antelope Road) 0.84 $17.09 Light Blue CFD 2015-2, Zone 12 Twice a Month 3.77 7.54 15.08 $306.73 Light Blue (New 20/21) CFD 2015-2, Zone 12 Twice a Month 1.77 3.54 7.08 $143.98 10.12.a Packet Pg. 266 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a00/00/00 -2- Map Color Funding Frequency of Sweeping Total Centerline Miles Total Curb Miles Total Curb Miles Swept per Month Monthly Rate at $20.34 per mile (2x Centerline Miles) (Frequency x Total Curb Miles) Purple CFD 2015-2, Zone 17 Twice a Month 0.12 .12 (Only East side of Zeiders and Cirilo) 0.24 $4.88 Fushia 2017-1 Twice a Month 1.48 2.96 5.92 120.41 Red Gas Tax Twice a Month 38.64 77.28 154.56 3,143.75 Green Gax Tax (J- Bar) Every Other Month 3.98 7.96 7.96 Every Other Month* 80.96 TBD CFD 2015-2, Zone 19 Twice a Month 0.28 0.56 1.11 $22.66 TOTAL 59.69 118.84 $4,591.63 In those instances where the scheduled street sweeping service day falls on a Holiday, Contractor shall provide street sweeping services on the following scheduled sweeping service day. 7) Hours of Service Residential Streets - Contractor shall provide street sweeping service on residential streets commencing no earlier than 6:00 a.m. and terminating no later than 7:00 p.m., Monday through Friday with no service on Saturday or Sunday. The hours, days, or both of service may be extended due to extraordinary circumstances or conditions with the prior verbal consent of the Contract Administrator . Major Arterial Streets - Contractor shall provide street sweeping service on major arterial streets commencing no earlier than 9:00 p.m. and terminating no later than 6:00 a.m., Monday through Friday with no service on Saturday or Sunday. The hours, days, or both of service may be extended due to extraordinary circumstances or conditions with the prior verbal consent of the Contract Administrator. 8) Temporary Changes to Street Sweeping Schedule 10.12.a Packet Pg. 267 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a00/00/00 -3- City and Contractor acknowledge that during the term of this Agreement it may be necessary or desirable to temporarily modify the street sweeping schedule under which Contractor provides street sweeping service. Conditions which may cause the Contractor to temporarily abstain from sweeping a street or an area to be swept include the following: • Construction or development on or along a street. • Pavement maintenance activities, including the chip seal program or the slurry seal program • Inclement weather when running water is in the gutter or street such that sweeping is ineffective. • Special sweeping on alternative schedule. • Consistent non-compliance of citizens to remove parked cars or other obstructions during sweep days. • Other legitimate reasons that make sweeping impractical as determined by the Contractor and/or City. 9) Street Additions As new streets are constructed and accepted by City, City may, at City's sole option, designate such streets as part of the service area for the purposes of street sweeping service. If the Contract Administrator designates such streets as part of the service area (after final cap has been laid down) Contractor shall provide street sweeping service on such streets under the rates, terms and conditions of this Agreement within fifteen (15) work days of receipt of notice from the Contract Administrator to begin service. 10) Street Deletions City may require some City streets to be temporarily or permanently removed from the list of scheduled streets for which Contractor provides street sweeping service under this Agreement. Contractor shall immediately cease providing street sweeping service to any City street upon receipt of notice from the City Representative to stop such service. When a City street has been temporarily removed from the list of scheduled streets, Contractor shall resume street sweeping service on such street in the next regularly scheduled cycle following notification from the City Representative that normal street conditions exist in order to resume service. 11) Revised Maps Contractor and City shall work cooperatively in order to revise the street sweeping service route maps to show the addition or deletion of City streets as provided above and shall provide such revised maps to one another as requested. The maps shall be provided in a format that can be posted on appropriate websites. 12) Hazardous Waste Contractor shall not be required to remove any Hazardous Waste from the street surface. If in the course of performing street sweeping services, any suspected 10.12.a Packet Pg. 268 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) 2859/031858-0001 12775493.1 a00/00/00 -4- Hazardous Wastes are encountered, Contractor shall immediately report the location to the Contract Administrator or Fire Department personnel. 13) Disposal of Sweeper Waste Contractor shall transport and deliver City sweeper waste to an approved disposal location. Disposal costs shall be paid by contractor . 14) Other City Street Sweeping Service If during the Term of this Agreement, circumstances exist which require work associated with the street sweeping service program that are not specifically provided for in this Agreement, the Contract Administrator may require Contractor to perform such other associated work ("OAW") . When contractor performs OAW, the labor, materials, and equipment used in the performance of such work shall be subject to the prior written approval of the Contract Administrator and charged on an hourly basis as specified in the approved Fee Schedule. Examples of OAW that Contractor may be required to perform includes but are not limited to: performance of special sweeps, flood clean-up, street sanitation for parades and celebrations, construction clean up services caused by City or private contractors or other natural or unanticipated occurrences affecting the cleanliness of the streets . 15) Street Sweeping Quality of Work The standards of performance which Contractor is obligated to meet are those good street sweeping practices which leave the serviced area in a debris free and dirt free condition. 16) Fee Schedule Beginning upon the "Effective Date" of this Agreement, the fees charged by the contractor shall be as follows: Rate per Curb Mile: $20.34/Curb Mile Rate per Hour for Other Associated Work (OAW): $86.70/Hour 17) Annual Rate Adjustment Contractor may apply for annual rate adjustments beginning July 1, 2018, Annual Rate Adjustments will not exceed 100% of the Consumer Price Index - All Urban Consumers , All Items- Greater Los Angeles, Riverside and Orange County Areas (CPI) for the prior Annual Time Period. 10.12.a Packet Pg. 269 Attachment: CR&R AGREEMENT (2563 : FY20/21 Contract for Street Sweeping Services) CITY OF MENIFEE SUBJECT: COVID-19 Financial Impact Report - Quarter 1, FY20-21 MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Rochelle Clayton, Deputy City Manager REVIEWED BY: Rochelle Clayton, Deputy City Manager APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION Review and discuss the financial impacts from COVID-19 of the first quarter of Fiscal Year 2020-21 (July to September 2020). DISCUSSION During the current budget process for Fiscal Year (FY) 2020/21, the economy encountered the COVID-19 pandemic world-wide. After the Stay-at-Home and business closure orders came out from the Governor of California, City staff carefully reviewed the budget and met with the City’s tax consultant HdL Companies (HdL), to present a fiscally responsible budget. Ultimately the preliminary general fund revenue budget was cut by approximately $5.4 million and the preliminary expenditures budgets were held to FY 19/20 levels, or a reduction of about $4.1 million. These cuts included freezing 12 vacant positions, reducing general fund funding of capital projects and other various expenditure reductions. The adopted budget document contains very conservative revenue estimates and expenditure budgets reflecting the uncertainty of the current economic outlook. As presented during budget adoption and recently requested by Council, staff is reporting back to Council on the economic and fiscal impacts to the City from COVID-19 closures and sales tax deferrals, for the first quarter of the Fiscal Year which ended on September 30, 2020. The City anticipated the most significant impact from COVID-19 to affect sales and use tax, though sales tax distributions from the state are delayed so the City does not yet have the sales tax results for the first quarter. However, other impacts can be reported at this time. Following are the most notable impacts: ▪ The sales tax results for the fourth quarter of FY 2019/20 (April, May, & June 2020) have been reported to the City by HdL. The reduction in FY19/20 Q-4 from FY18/19 Q-4 (year over year) in overall sales tax revenues was twelve percent (12%). 12.1 Packet Pg. 270 City of Menifee Staff Report COVID-19 Financial Impact Report - Quarter 1, FY20-21 October 21, 2020 Page 2 of 2 ▪ Development revenues received in the first quarter of FY 2020/21 are an average of 20% of the annual budget, which indicates that the revenues may meet the budget for the first quarter once all receipts are accounted for. ▪ General fund expenditures that are non-personnel related in the first quarter of FY 2020/21 are an average of 13% of the annual budget, as the City is cautiously monitoring all expenditures. While the FY 2020/21 impact to sales tax revenue is unknown at this time, the reduction of 12% in the April-May-June 2020 quarter, when COVID-19 closures were first realized, represents the equivalent of $627,000 reduced revenue to the City, or $1.1M in General Fund revenue and $1.4M in Measure DD sales tax revenue for the year if the reduction is held to 12%. Though many businesses that remained operating in April-May-June 2020 have since closed permanently, so the longer-term impact is expected to worsen. Overall it is difficult to determine the short and long-term total impacts of the COVID-19 pandemic, as many businesses in the City continue to remain closed or are operating at a minimal level. City staff are closely monitoring the impacts as well as prudently monitoring expenditures. Staff will continue to keep Council updated with quarterly reports of COVID-19 impacts. FISCAL IMPACT The Fiscal Impact is yet to be fully determined. The City has realized a reduction in sales tax revenue as a result of the pandemic, as revenues decreased by 12% for the 4th Quarter of FY 19/20 (period of April, May & June), compared to the 4th Quarter of FY 18/19. 12.1 Packet Pg. 271 CITY OF MENIFEE SUBJECT: Menifee Keep Existing Employers Profitable Business Walk and COVID-19 Business Report MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Kayla Charters, Management Analyst REVIEWED BY: Jeff Wyman, Assistant City Manager APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION Receive and file the 2020 Menifee K.E.E.P (Keep Existing Employers Profitable) Business Walk and COVID-19 Business Report. DISCUSSION Covid-19 Business Impact Surveys March 2020 began unprecedented times that greatly impacted the Menifee business community, as State guidelines forced businesses to close and highly restrict the way they operate. The Economic Development Department (EDD) measured the impacts throughout the pandemic, as it was critical to record and gather information incrementally that would assist the business community’s ability to survive through these uncertain and challenging times. Furthermore, it is recognized that overall business survival also equated to local jobs, and revenue the City relied on to provide vital services to residents. EDD hosted several economic impact surveys throughout the pandemic to compile the COVID- 19 Business Impacts 2020 Report, in addition to the annual K.E.E.P (Keep Existing Employers Profitable) Business Walk (part of the Menifee Valley Chamber of Commerce and the City of Menifee’s Memorandum of Understanding (MOU)). The following chart details the incremental impact surveys that were conducted to compile the COVID-19 Business Impacts Report: Survey Date of Closure Survey Conducted Hosted by First Closure March 17, 2020 April 3, 2020 City Re-Opening May 8, 2020 May 5, 2020 City Second Closure July 13, 2020 July, 28 2020 City 12.2 Packet Pg. 272 City of Menifee Staff Report Menifee K.E.E.P Business Walk Results October 21, 2020 Page 2 of 3 K.E.E.P Busines Walk June 5, 2020 Chamber as part of MOU Nearly half of the businesses surveyed were small businesses (1-5 employees) with only 10% of the surveyed businesses employing 50 or more employees. The surveys conducted asked Menifee businesses questions regarding certainty when it comes to recovery from the pandemic, requesting financial assistance, how the City and Chamber can assist moving forward, innovation implemented and more. The results of the surveys continually assist EDD and the Menifee Valley Chamber of Commerce to shape business and program strategies, initiatives and workshops for current mand future years. For example, the topics for the workshops that are held as part of the MOU between the City and the Chamber, are decided upon from the details requested from the business surveys. The businesses are asked what areas they need assistance in, and are tallied, and ranked as a way to turn the responses into topics for current and future resources, needs and workshops put on by the City and Chamber. The 2020 Business Impact Report revealed that businesses are seeking assistance in marketing, social media, financial assistance, and business plans, which will be turned into the topics for City/Chamber workshops. In addition, staff was able to ask businesses what they wish they had known prior to the pandemic, which gave staff additional insight that would assist both city/chamber strategies to assist now, in the future, and what businesses felt was most helpful in a pandemic or crisis. Furthermore, this information was used and shared immediately to provide point-to-point contact (boots on the ground), resources, toolkits, podcasts, initiatives, website tools, and programming by the City. EDD then shared this information with the Chamber on how they can serve a vital partnership in the response to the business community from the surveys. They City used the existing Chamber MOU to make adjusts to the MOU as needed. On page 3 of the report, a full list of COVID-19 responses, to-date is provided. Additional business outreach is on-going, as the pandemic is still occurring, as are state guidelines limiting business operations. K.E.E.P Business Walk The Economic Development Department, in partnership with the Menifee Valley Chamber of Commerce, holds the Menifee K.E.E.P Business Walk annually. Although there were challenges presented by COVID-19 to complete the traditional survey method of face-to-face surveys, the event was still held and modified using mix-media methods to accomplish the survey respecting social distancing requirements and was conducted on starting June 5, 2020 to random selected businesses in coordination with city staff. The Chamber Board of Directors played a large role in this event and worked alongside EDD city staff to complete the surveys. The overall surveys were expanded this year on various aspects of doing business in Menifee, finances, impacts of the Coronavirus, needs moving forward, workforce, certainty and more. Surveys were collected by way of phone, email and as a last resort, in-person (social distancing being respected) to meet the comfortability of the business owners The K.E.E.P Business Walk is a Comprehensive Economic Development Strategy (CEDS) task being identified as a “high-priority initiative” through the “Existing Business Retention and 12.2 Packet Pg. 273 City of Menifee Staff Report Menifee K.E.E.P Business Walk Results October 21, 2020 Page 3 of 3 Expansion (BRE)” element of the strategy. The Economic Development Department, in partnership with the Menifee Valley Chamber of Commerce, utilize the results of the business walk to achieve the following purposes (as quoted in CEDS): • Identify any needs for business assistance and connect businesses with available support resources. • Probe their sense of locational advantages and disadvantages in Menifee, including such issues as the desirability of and potential for bringing key suppliers or business- service firms to the City. • Identify any needs for coordinating operational or expansion requirements with local regulatory bodies. The survey revealed how many businesses applied for funding assistance and which type of funding, stating 67% of businesses applied for some form of financial assistance. These results allowed staff to share resources with those who did not apply, share other various resources that businesses may be eligible for outside of the funding they applied for. Of the businesses surveyed in June 2020, and reported back to the City in July 2020, 92% of the businesses were highly or somewhat confident that their business would recover from the pandemic. During the pandemic, it was critical to reach out to Menifee businesses throughout these times of uncertainty to not only measure the severity of impacts of the pandemic, but to create “touches” with Menifee businesses to show that the City of Menifee is available as a resource and CARES about the business community. As a result, the Economic Development Department will continue to incrementally survey the business community before and after milestone marks in the economy to ensure the business needs during the pandemic are being met to stay successful. FISCAL IMPACT There is no new fiscal impact related to the production of the report. The Business Walk is part of the existing Menifee Valley Chamber of Commerce and City of Menifee’s Memorandum of Understanding line item programming. Department Staff time to produce the impact surveys and business outreach was expended to the Coronavirus Aid, Relief, and Economic Security (CARES) Funding allocated by the State. ATTACHMENTS 1. Menifee KEEP Business Walk Results Flyer 2020 12.2 Packet Pg. 274 menifeebusiness.com | (951) 672-6777 In 2020, the City of Menifee and the Menifee Valley Chamber of Commerce partnered to conduct the Menifee K.E.E.P. Business Walk. Menifee K.E.E.P. (Keep Existing Employers Profitable) is a feature of the Menifee Building Better Businesses (B3) Program. Due to COVID-19, this years Menifee K.E.E.P Business Walk was converted into a walk over a two-week period where volunteers consisting of Chamber Board Members, staff, and ambassadors were tasked with surveying random Menifee businesses that were selected using data provided by the City Business License division. The “Virtual Walk” consisted of businesses being contacted by random selection equal to 10% of Menifee’s business community. For information or questions about this report, please contact the Menifee Economic Development Department at (951) 672-6777 or email EconDev@cityofmenifee.us. SURVEY.RESPONSE.STRENGTHEN.EXPAND. KEY FINDINGS BUSINESS INDICATORS Of the businesses surveyed for the business walk in June 2020, 92% of the businesses were highly or somewhat confident that their business would recover from the pandemic. The other 8% of the businesses unsure due to the pandemic. Nearly half (48%) of the businesses surveyed were small businesses (1-5 employees) with only 10% of the surveyed business employing 50 or more employees. Over three-quarters (78%) of the surveyed businesses plan on rehiring/bringing back 100% of their employees. Only a small percentage (7%) of the businesses plan on bringing back less than 25% of their staff. HIGHLY OR SOMEWHAT CONFIDENT NOT SURE 8 %N O T 92% C O N F I DENT“DO YOU THINK YOUR BUSINESS WILL RECOVER FROM THE PANDEMIC?” “DO YOU PLAN TO REHIRE/BRING BACK 100% OF THEIR EMPLOYEES?” (KEEP EXISTING EMPLOYERS PROFITABLE) 50% of the surveyed businesses implemented new technology/guidelines during the pandemic that will become part of their permanent business plan moving forward and majority used funding provided from COVID-19, that allowed them to respond to COVID-19 to survive. Examples of new technology/guidelines include: • Revised customer-facing procedures including shields• Increased use of websites and social media for marketing• Virtual online meetings and training• Social distancing precautions• Telecommuting• Personal protective equipment, protective masks, and new sanitization standards• Curbside pickup for eating establishments• Enhanced technology or software to help serve the public NEW TECHNOLOGIES: S U R E business walk 2020 report 78% YES100% OF STAFF 7.3% YES >25% OF STAFF 14.7% YES >75% OF STAFF Menifee KEEP is a new feature of the B3 (Building Better Businesses) program, aims to assist local businesses increase their competitive advantage, retain jobs, survive economic difficulties, and provide feedback as a tool to improve the way Menifee, and the Chamber do business and grow. *A B3 Program 12.2.a Packet Pg. 275 Attachment: Menifee KEEP Business Walk Results Flyer 2020 (2665 : Menifee K.E.E.P Business Walk Results) menifeebusiness.com | (951) 672-6777 • 67% of businesses surveyed applied for some form of financial assistance • 38% applied for the Employee Retention Tax Credit • 8.9% of businesses also applied for the Economic Injury Disaster Loan (EIDL) • 4.4% applied for the Small Business Administration (SBA) Debt Relief Program • 35% of the businesses requested $5,000 or less • 30% of the businesses requested $50,000 or more • 35% of the remaining businesses requested between 5k and 50k • At the time of the survey in 2020, 60% of the businesses had received the requested funding; this does not include Menifee’s Small Business Grant Another component of this year’s Menifee K.E.E.P. Business Walk survey was to survey businesses to determine what types of free workshops would assist businesses with tools, resources, and growth needs. The top four identified workshops, following issues requested by the business community, were: • MARKETING • SOCIAL MEDIA If there was something businesses wished they’d known before COVID-19, that would have been beneficial: • Stocking up on PPE and cleaning supplies • Additional savings, reserves, and capital resources • Health and safety guidelines • Contingency planning • More diverse business plan These additional topics will be utilized in additional workshops or planning to assist our business community. How can the City of Menifee and Chamber of Commerce assist their business needs: • Re-open business as usual, missing chamber events • More marketing surrounding health orientated businesses • Social media training/education • More affordable office space • Police monitoring of shopping centers • Fewer restrictions on doing business in the City during COVID-19 from guidelines • Tools and resources to promote businesses • Webinars and education • Dissemination of information to businesses from Chamber of Commerce FINANCIALS: WORKSHOPS: QUESTIONS:? Menifee KEEP is a new feature of the B3 (Building Better Businesses) program, aims to assist local businesses increase their competitive advantage, retain jobs, survive economic difficulties, and provide feedback as a tool to improve the way Menifee, and the Chamber do business and grow. (KEEP EXISTING EMPLOYERS PROFITABLE) *A B3 Program • FINANCIAL ASSISTANCE • BUSINESS PLANS COVID-19 Business Impacts2020 Report FIRST CLOSURE | MARCH 17TH, 2020SURVEYED ON 4/3/20 SURVEYED ON 5/28/20 SURVEYED ON 7/28/20RE-OPENING | MAY 8TH, 2020 SECOND CLOSURE | JULY 13TH, 2020 COVID-19 SURVEYS: How do you currently feel about your businesses ability to weather through the COVID-19 pandemic? 36% 51% 36% 25% 33% 25% 21% 8% 16% 12% 5% 11% 5% 3% 11% CONFIDENT TENTATIVE WORRIED UNDER DURESS OTHER 12.2.a Packet Pg. 276 Attachment: Menifee KEEP Business Walk Results Flyer 2020 (2665 : Menifee K.E.E.P Business Walk Results) menifeebusiness.com | (951) 672-6777 The City of Menifee’s Economic Development Department’s business response to COVID-19 has included the following, but not limited to: 92% C O N F I DENT(KEEP EXISTING EMPLOYERS PROFITABLE) S U R E Menifee KEEP is a new feature of the B3 (Building Better Businesses) program, aims to assist local businesses increase their competitive advantage, retain jobs, survive economic difficulties, and provide feedback as a tool to improve the way Menifee, and the Chamber do business and grow. COMPLETE LIST OF COVID-19 RESOURCES FOR BUSINESSES: Created Menifee Cares Recovery website, compiling resources on the website to help business community-updating information and resources daily (Website has been updated more than 435 times since March 2020) Developed and administered MeniFREEwards Restaurant Takeout Program and extended program (04/03/2020 – 9/25/2020) Created a #ShopLocal Program known as Menifee Forward with press, website, outreach, giveways, and programming Coordinated with property owners/developers to work with businesses on lease terms/needs to recover Developed Menifee CARES Initaitive and administered program Developed a Menifee CARES Business Grant Program to quickly put funding in the hands of businesses Developed with the Community Development Department Outdoor Temporary Dining Permit, template application and press Developed with the Community Development Department Outdoor Temporary Personal Service Permit, template application and press Worked with the Development Team on permit extensions and project concerns Worked with the Finance Department on waiving business license fees for portion of FY 19/20 and entire FY 20/21 Promoted Take-out Tuesday Program on social media, and daily business newsletters Developed Mask-Up Menifee Campaign - and developed posters passed out to Business to encourage customers to wear masks to change behavior to allow businesses to open sooner COVID-19 PUBLICATIONS Developed Resource Toolkit for residents and businesses, which has been updated regularly as new resources become available (Updated over 24 times) (Only SW RIVCO City to develop toolkit) Developed Community Resource Guide for residents and businesses, which has been updated regularly as new resources become available (Updated over 24 times) (Only SW RIVCO City to develop guide) Developed Business listing of who is open/closed and hours Developed Essential Business Mapping tool Menifee Matters included Econ Dev Business Highlights and resources/tools Sent letters to business/plazas, containing current City, County, and State resources along with Industry Guidelines for retailers (4/30/2020) Developing a Menifee Magazine for business and city lifestyle information (in proofing now) COVID-19 BUSINESS OUTREACH Developing a SHOP LOCAL website and video content for Menifee Forward to promote businesses, encourage shopping locally, and find jobs Developed Yard Signs to support Menifee Businesses and local Police Department for chamber Regularly sending out daily Constant contact COVID-19 Briefs, sharing the current information and resources business and community may need (sent over 81 E-Blasts) Regularly reached out to all of our businesses via phone calls, in person, and/or email in regard to the new guidelines and current business operations Fielded calls from businesses regarding closures and guidelines Outreach to struggling businesses, reaching out to businesses, searching for status, feedback, and needs (Started first week of COVID-19 announced) Conducted incremental business impact surveys to provide businesses key needs Started EconDev Pod Cast to assist businesses during COVID-19 business walk 2020 report *A B3 Program 12.2.a Packet Pg. 277 Attachment: Menifee KEEP Business Walk Results Flyer 2020 (2665 : Menifee K.E.E.P Business Walk Results) CITY OF MENIFEE SUBJECT: Animal Services Joint Powers Authority Membership MEETING DATE: October 21, 2020 TO: Mayor and City Council PREPARED BY: Christine Booker, Budgets & Grants Analyst REVIEWED BY: Pat Walsh, Police Chief APPROVED BY: Armando G. Villa, City Manager RECOMMENDED ACTION 1. Join an Animal Services Joint Powers Authority (JPA) by Authorizing the Mayor to to approve the Fourth Amendment to the JPA Agreement between the County of Riverside; the City of Canyon Lake; the City of Lake Elsinore; the City of Murrieta; the City of Temecula; the City of Wildomar; and the City of Menifee for the Southwest Communities Financing Authority (Animal Shelter); and 2. Request that the Mayor Appoint a Member of the Animal Shelter JPA Board. DISCUSSION Since incorporation, the City of Menifee is responsible for provision of animal control services to the Menifee community. At the Special City Council meeting on May 14, 2020 staff were authorized to apply to the Joint Powers Authority (JPA) for sheltering services. Staff virtually attended the JPA Board of Director’s meeting on May 21, 2020. At the meeting, the Board tentatively agreed to accept the City’s application to join the JPA, and held their official vote at their most recent meeting on October 1, 2020 approving the City of Menifee as a new member effective November 1, 2020. JPA Membership Contract: $341,382 yearly ($28,448.50 monthly) for Fiscal Year 2020/21 • November 1, 2020– June 30, 2021 (Partial Year) • Covers Menifee’s portion of Bond Principle and interest payments (debt service) • Administrative and Operating fees All costs and obligation for the City are covered in the monthly rate. If the City chooses to end their membership with the JPA they must make the request in writing. Sixty (60) days’ notice is required if Southwest Communities Financing Authority (SCFA) has incurred no obligations. If SCFA has acquired an indebtedness, financial obligation, or any property then twelve (12) months’ notice is required to allow for appropriate time to fulfill the indebtedness, or financial obligation, or settle upon provisions for such payment to be made per section 4.a-f of the fourth amendment. 12.3 Packet Pg. 278 City of Menifee Staff Report Animal Services JPA Membership October 21, 2020 Page 2 of 2 As a new member of the JPA, the City will be entitled to a seat on the Board of Directors. Per City Council policy, the Mayor has the authority to make that appointment. FISCAL IMPACT The fiscal impact to the FY2020/21 budget of received Animal Control Sheltering Services through AFV as a JPA member is as follows: Description of Services Total Cost ($) Account # Sheltering Services (JPA member) for the period of 11/1/2020- 6/30/2021 $227,588 partial year ($28,448.50 monthly) 100-4450-52808 TOTAL $227,588 The total FY2020/21 costs of $227,588 are included within the approved budget within the account listed above. Costs associated with fiscal years beyond FY2020/21 will be incorporated within each year’s respective budget. No additional budget appropriation action(s) is required. ATTACHMENTS 1. 4th Amendment to JPA Agreement 12.3 Packet Pg. 279 12.3.a Packet Pg. 280 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 281 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 282 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 283 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 284 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 285 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 286 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 287 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 288 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 289 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 290 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 291 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 292 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 293 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 294 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 295 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 296 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 297 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 298 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 299 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 300 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 301 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 302 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership) 12.3.a Packet Pg. 303 Attachment: 4th Amendment to JPA Agreement (2692 : Animal Services JPA Membership)