Agenda packet — Lake Elsinore City Council, June 10, 2025 (part 3 of 6)

REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:June 10, 2025
Subject:Agreement with County of Riverside Sheriff's Department for Law Enforcement Services
Recommendation
Approve and authorize the Mayor to execute an Agreement with the County of Riverside Sheriff's Department to perform law enforcement services per the fee and terms noted in the agreement in such final form as approved by the City Attorney.

Background
For many years, the County of Riverside Sheriff's Department has provided the City of Lake Elsinore with law enforcement services. The existing five-year contract is ending June 30, 2025, and the proposed agreement renews for an additional five-year period from July 1, 2025, to June 30, 2030.

The City Attorney’s office has reviewed the agreement. It is consistent with the previous contract and includes agreed-upon modifications to the contract concerning the patrol of the lake and Community Patrol Officers.

Since 2010, the City's overall daily patrol service hours for law enforcement have remained the same due to budget constraints and rising service costs. However, in recent years, the City has experienced an increase in quality of life concerns due to legislative changes that have limited law enforcement's ability to hold people in jail, resulting in a growing homeless population throughout California.

In October 2017, the City Council authorized an Amendment to the City's law enforcement agreement with the County of Riverside to expand our levels of services to include an additional Deputy Sheriff Community Patrol Officer to address a variety of issues related to improving safety and the overall quality of life in Lake Elsinore.

Law Enforcement Services

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In November 2020, Lake Elsinore voters approved Measure Z, effective April 1, 2021. Hiring additional law enforcement officers in the City is the direct result of Measure Z and our City's commitment to preserving the highest levels of public safety.

In May 2021, the City Council amended the contract to show that the City currently employs 44 sworn police officers. Positions include 1 Motorcycle Sergeant, 2 Special Enforcement Team Officers, 4 Motorcycle Officers, 1 Lake Patrol Officer, 2 Traffic Accident Investigation Officers, 1 Special Enforcement Officer Parks, 2 Community Patrol Officers, 6 Community Service Officer IIs, and 25 Patrol Officers (at 132 hours per day).

In June 2023, the City Council amended the contract again to show that the City currently employs 45 sworn police officers. Positions include 1 Motorcycle Sergeant, 3 Special Enforcement Team Officers, 4 Motorcycle Officers, 1 Lake Patrol Officer, 2 Traffic Accident Investigation Officers, 1 Special Enforcement Officer Parks, 2 Community Patrol Officers, 6 Community Service Officer IIs, and 25 Patrol Officers (at 132 hours per day).

In September 2024, the City Council amended the contract again to show the City currently employs 47 sworn police officers. Positions include 1 Motorcycle Sergeant, 3 Special Enforcement Team Officers, 4 Motorcycle Officers, 1 Lake Patrol Officer, 2 Traffic Accident Investigation Officers, 1 Special Enforcement Officer Parks, 3 Community Patrol Officers, 7 Community Service Officer IIs, and 25 Patrol Officers (at 132 hours per day).

Like many jurisdictions throughout the state, the City has had to find ways to address an increase in homeless activity that has subsequently led to increased citizen complaints and calls for code enforcement and law enforcement services. These calls for service include complaints regarding public feedings, panhandling/solicitation, thefts, assaults, trespassing, and debris located at homeless encampments. Addressing law enforcement needs is the first phase of appropriating Measure Z funding for this Fiscal Year. The County has provided the City with a schedule of contract staffing costs (Exhibit "A") to the Law Enforcement Agreement for City Council approval.

Discussion
The term of the proposed agreement will be from July 1, 2025, to June 30, 2030, and it maintains all contracted services from the existing agreement but includes one (1) additional Motorcycle Officer.

The Cooperative Agreement requires the County to provide the City of Lake Elsinore with a full range of law enforcement protection services, including patrol of the lake and a Burglary, Robbery, and Suppression Team (BRST).

Formalization of this agreement is required every five years to renew the required contract appropriately. The County has provided the City with a schedule of contract staffing (Exhibit "A") to the Law Enforcement Agreement for City Council approval, which reflects the estimated staffing for the Fiscal Years 2025-26 through 2029-30.

Law Enforcement Services

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Fiscal Impact
The fiscal impact is approximately $21.6 million and will be reflected in the City's Annual Operating Budget during the agreement term. Any necessary changes for the fiscal year will be made as part of the mid-year review process.

Attachments
Attachment 1 – Agreement
City Manager's Office
Original 1 of 3
AG

REEMENT FOR LAW ENFORCEMENT SERVICES
BETW

EEN THE CITY OF LAKE ELSINORE

AND THE

COUNTY OF RIVERSIDE
THI
S AGREEMENT FOR LAW ENFORCEMENT SERVICES (“Agreement”) is made and entered into by and between the CITY OF LAKE ELSINORE, a General Law City, hereinafter “City,” and the COUNTY OF RIVERSIDE, a political subdivision of the State of California , on behalf of the Riverside County Sheriff’s Office, hereinafter “County”, sometimes collectively referred to herein as the “parties” and individually as a “party”.

IT
IS THEREFORE AGREED AS FOLLOWS:

1. TERM

1.1 Effective Dates. This Agreement shall be effective from July 1, 2025 through June 30, 2030.

1.2 Renewal. In the event City desires to terminate this Agreement at the end of any current five (5) year period, the City Council, not later than twelve (12) months preceding the expiration date of the current term of this Agreement, shall notify the Sheriff and the Board of Supervisors that it wishes to terminate the same.

1.3 Termination. Notwithstanding the provisions of Paragraphs 1.1 and 1.2 herein, either party may terminate this Agreement upon notice in writing to the other party of not less than twelve (12) months prior to the effective termination date.

2. SCO

PE OF SERVICE

2.1 Services. The County agrees, through Sheriff thereof, to provide municipal police protection within the corporate limits of City to the extent and in the manner hereinafter set forth. It is understood that the Sheriff’s Office shall be the sole provider of general and specialized law enforcement services within the corporate limits of City. City shall not hire any other persons or company to provide general and specialized law enforcement services within the corporate limits of City. However, City is not precluded by any language in this section from hiring an unarmed code enforcement unit. The Sheriff’s services shall encompass duties and functions of the type falling under the jurisdiction of and customarily rendered by a police department of the City under Sta te statutes.

Such services shall include the enforcement of State Criminal Codes and all pertinent City criminal codes and ordinances. Services shall also include traffic enforcement and related services to the extent possible given the size of the force provided for in this Agreement. County agrees to provide all investigative support necessary to complete criminal investigations conducted hereunder. However, all investigator overtime will be charged to City at the Board of Supervisors approved hourly overtime rate.

2.2 California Identification System (CAL-ID) and Records Management System. (RMS) City agrees as a condition of receiving services hereunder to participate in CAL -ID and RMS under the terms and conditions set forth in this Section and to pay for these services under separate billings.

2.2A Definitions. For purposes of this Agreement the following are some of the more common definitions which shall apply, but shall not be limited by this reference:

a) Records Management System (RMS) Functions shall mean the software functions provided to City by County, which are supplied by the RMS. These functions shall include inquiry and case entry into the RMS, access to the Master Name Index, Warrant and Master Location Index and Jail Locator databases.

b) The California Law Enforc ement Telecommunications System Access ( CLETS) shall mean that access to the Department of Justice computers provided by County to City.

c) Work Station shall mean those County devices and software, which are used by City to access RMS functions and the CLETS.

d) LAWNET shall mean the County’s law enforcement telecommunications network consisting of County provided data circuits, digital service units, routers, hubs and other County provided hardware and software that is used by City to connect work stations to RMS services as defined below.

e) County Services shall mean the collective hardware and software, work LAWNET, stations, RMS functions and CLETS.

2.2B Scope of RMS Services. County agrees to provide to City full access to the RMS and CLETS systems. CLETS access will be provided within the scope of CLETS access rules and regulations as established by the California State Department of Justice.

2.2C Provision of RMS Supervision, Labor and Equipment. Supervision over the provision of County Services, the standards of performance and other matters incident to the performance of such services, shall remain with County. Security of the host system and control of LAWNET shall remain with County. The County shall furnish all labor and equipment for the host system necessary to maintain the level of service rendered hereunder. In the event City chooses to provide PC-based equipment for services defined herein, the equipment must be configured in accordance with County specifications. Further, City shall not alter the configuration of any PC- based equipment used to provide services herein without the permission of Sheriff's Information Technology Officer.

2.2D Establishment of RMS Rates and Payment of Costs. Establishment of RMS rates and payments for provided services shall be as specified in Sections 7.2 and 7.4 of this Agreement.

3. LEVEL OF SERVICE

3.1 Level of Service Specified. County shall provide all enforcement services at the level specified in Attachment A, attached hereto and incorporated herein by this reference.

3.2 Variation in Level of Service. Variations in the level of service shall be made by amendment, as provided for in Section 11 of this Agreement, and under the following terms:

If City requests an increase in the level of service to be provided under this Agreement, County agrees to provide such increased level of service as soon as is practicable, consistent with the ability of the Sheriff to hire and train recruits.

If City elects to reduce the level of service provided herein by ten percent (10%) or greater, City must give notice in writing to County not less than twelve (12) calendar months prior to the effective date of such reduction. If City elects to reduce the level of service provided herein by less than ten percent (10%), County agrees to reduce the level of service accordingly as soon as it is practicable. The level of service, however, may not be reduced to below the minimum level, as determined by County, required to ensure public and officer safety.

4. CHIEF OF POLICE

The Sheriff will, to the extent practical, coordinate appointment of a Police Chief with City and consult with City on final selection for the position.

5. PROVISION OF SUPERVISION, LABOR, AND EQUIPMENT

5.1 Supervision. Supervision over the rendition of law enforcement services, the st andards of performance, the discipline of officers, and other matters incident to the performance of such services and the control of personnel so employed, shall remain with County. The Sheriff or a designated representative will meet and confer with the City Manager or a designated representative on questions related to the provision of services.

5.2 Labor and Equipment. For the purpose of performing said services, County shall furnish and supply all labor, supervision, equipment, communication servi ces, and supplies necessary to maintain the level of service to be rendered hereunder. Location of the above will not necessarily be within City limits. Notwithstanding anything herein contained, it is agreed that in all instances where specific equipmen t used solely to support specialized enforcement activities within the City not normally provided by the Sheriff is to be used, or where special supplies, stationery, notices, forms, and the like related to law enforcement are to be issued in the name of C ity, such equipment and materials shall be supplied by City at its own cost and expense. Any such special equipment or materials so purchased by City shall meet with the Sheriff's specifications shall remain within the City limits, and ownership title thereto shall remain with City.

However, under no circumstances shall City purchase or otherwise provide general patrol vehicles for services provided pursuant to this A greement without permission of Sheriff. The County shall provide all marked general Patrol vehicles to City and shall charge City for their use on a per mile basis.

5.3 City-Owned Motorcycles and Specialized Support Vehicles. In the event City chooses to provide motorcycles or specialized support vehicles for use in providing services hereunder, the

motorcycles or specialized support vehicles shall meet minimum specifications furnished by County, shall be adequately equipped and ready for use, and shall be registered in the name of City. It is further understood that City is providing m otorcycles or specialized support vehicles to Sheriff expressly for law enforcement services and shall only be operated by Sheriff’s personnel, or persons authorized by the Sheriff.

City shall bear the cost of maintenance, fuel, licensing, and any and all expenses associated with use of the motorcycles and specialized support vehicles for the provision of services hereunder, which is inclusive of responsibility for any and all cost for physical damage to the City-owned motorcycles or specialized support vehicles. However, County shall be responsible for the cost of all third party liability caused by the operation of the City- owned motorcycles or specialized support vehicles, including the property damage caused by the negligence or wrongful acts of County officers and employees while operating City-owned motorcycles and specialized support vehicles. Motorcycles and specialized support vehicles shall be used only for city-approved functions.

5.4 V ehicle Insurance. City shall maintain insurance for any physical damage to the City- owned vehicles in an amount equal to the replacement value of all vehicles provided to the County under this Agreement. Policy shall, by endorsement, name the County of Riverside, its Departments, Districts, Agencies and Special Districts, their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents, or representatives as Additional Insureds. Such insurance may be provided through a program of self-insurance.

General Insurance Provisions - All lines:
a. Any insurance carrier providing insurance coverage hereunder shall be admitted to the State of California and have an A.M. BEST rating of not less than an A: VIII (A: 8) unless such requirements are waived, in writing, by the County Risk Manager. If the County's Risk Manager waives a requirement for a particular insurer such waiver is only valid for that specific insurer and only for one policy term.

b. The City shall cause their insurance carrier(s) to furnish the County of Riverside with 1) a properly executed original Certificate(s) of Insurance and certified original copies of Endorsements effecting coverage as required herein; or, 2) if requested to do so orally or in writing by the County Risk Manager, provide original certified copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certificate(s) and policies of insurance shall contain the covenant of the insurance carrier(s) that shall provide no less than thirty (30) days written notice be given to the County of Riverside prior to any material modification or cancellation of such insurance. In the event of a material modification or cancellation o f coverage, this Agreement shall terminate forthwith, unless the County of Riverside receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, inc luding all endorsements and attachments thereto evidencing coverages and the insurance required herein are in full force and effect. Individual(s) authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for each pol icy and the Certificate of Insurance. If County is utilizing City-owned vehicles, operations shall not commence until the County of Riverside has been furnished original Certificate (s) of Insurance and certified original copies of endorsements or policie s of insurance including all endorsements and any and all other attachments as required in this Section.

c. It is understood and agreed by the p arties hereto and the City 's insurance company(s), that the Certificate(s) of Insurance and policies shall so covenant and shall be construed as primary insurance, and the County's insurance and/or deductibles and/or self -insured retentions or self-insured programs shall not be construed as contributory.

6. EMPLOYMENT STATUS OF PERSONNEL

6.1 Employment Status. Any persons employed by County for the performance of services and functions pursuant to this Agreement shall remain employees of County on special assignment to City for the purposes of this Agreement, and shall not be considered employees of City. No such County employee shall have any entitlement to compensation, workers’ compensation coverage, pension, or civil service benefits from City.

6.2 Labor Shortage. In the event of a work slow-down, strike, or any other form of job action by those individuals assigned to City, County agrees to provide only that level of service which may be available through mutual aid, pursuant to Government Code Section 8615, et seq. City shall be billed only for the actual hours of service received.

7. COMPENSATION

7.1 Payment Basis. City shall reimburse County the cost of rendering services hereunder at rates established by the County Board of Supervisors, which rates shall include all items of cost and expense to the Sheriff for providing the services hereunde r. Such cost of services shall be established by the County Board of Supervisors in the form of hourly rates for Sheriff’s Office personnel, vehicle mileage rates, facility use rates, RMS transaction fees and CAL-ID fees. "Cost" as used herein shall not include items of expense attributable to services normally provided or available to all territory within the County as part of County's obligation to enforce State law. In addition to any other fees or costs set forth herein, County may impose on City, and City shall pay upon receipt of an invoice from County, a criminal justice administrative fee consistent with Government Code Section 29550 with respect to arrests made by County employees pursuant to this Agreement just as if such arrests had been made by City employees. Pursuant to Government Code Section 51350, County shall not charge City for services it would provide to any city in the County free of charge. These services, which are provided at the discretion of County, could typically include the services of the Sheriff's Special Investigations Bureau, Emergency Services Team and Aviation Unit.

7.2 Establishment of Costs. The rates to be charged City shall be adjusted periodically, but not more than once each fiscal year, to reflect any changes in the cost to County for providing services hereunder. City shall be notified of any change in the rates to be charged City pri or to submittal of the proposed change to the County Board of Supervisors for adoption, and City shall be given the opportunity to review the proposed change with County personnel. City shall, thereafter, be notified of adoption by County of the rates to be charged City, and said new rates shall take effect on the same date as County incurs the associated costs. Should City, subsequent to a rate adjustment, choose not to appropriate or expend any additional monies needed to support the level of service theretofore supplied, County reserves the right to reduce the level of service in accordance with the amount City is willing to expend.

7.3 Facility Rate Charges. City shall reimburse County for the costs incurred by the Sheriff’s Office at County-owned or leased facilities. Costs are prorated according to the facility’s square footage occupied by a Sheriff’s Office Bureau or Unit.

7.3A Calculation of Facility Rates . The total of the facility’s cost components is divided by the appropriate variable number of positions (number of station funded, sworn department funded or total Department funded employees depending on the facility in question and the Department population served). This cost per funded position is then applied to the number of positions chargeable to the contract city to arrive at each contract city’s share of the facility cost.

The County agrees that Facility Rate Station charges to City will not be increased due to the Sheriff’s decision to move Contract or unincorporated County Patrol positions from the Station.

7.4 Payment of Costs. County, through the Sheriff’s Office , shall provide to City within thirty (30) days of the conclusion of each billing period, an itemized statement of the costs for services being charged for said billi ng period. Billing statements for RMS services will be provided quarterly for services being charged for said quarter. City shall remit payment to the invoicing department within thirty (30) days after receipt of such statements. If such payment is not r eceived by the County within thirty (30) days after presentation of billing, County may satisfy such indebtedness from any funds of the City on deposit with County as provided by law pursuant to Government Code Section 907.

7.5 Field Training Costs. Should City elect to add additional Deputy Sheriff positions to the level of service described herein, there will be an associated field training cost for each additional position. City will be billed, on a separate invoice, up to a maximum of sixteen (16) w eeks of training on a one-time basis for each additional Deputy position. Said cost will be charged at the Unsupported Deputy hourly rate as approved by the County Board of Supervisors. B illing will be provided for field training costs in conjunction with the rate adjustment billing . Field training costs will not apply to supervisory or classified positions added to the level of service.

7.6 Miscellaneous Costs. There are a number of other service costs that City shall be responsible for paying as they are incurred. These costs are not included as the support or service and materials cost components in the fully supported Deputy hourly rate, nor any other such rates established by the County Board of Supervisors. These service costs may include, but are not limited to, charges from vendors for: crime scene clean -up, blood draws, rape exams, polygraph exams, specialized printing jobs exclusive to City and training for personnel requested by City for specialized law enforcement.

8. INDEMNIFICATION AND HOLD HARMLESS

8.1 Indemnification by City. City shall indemnify and hold harmless the County, its Agencies, Districts, Special Districts and Departments, their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents and representatives from any liability, claim, damage or action whatsoever, based or asserted upon any act or omission of Ci ty, its officers, employees, contractors, agents or representatives arising out of or in any way relating to this Agreement, including but not limited to property damage, bodily injury, or death. City shall defend, at its sole cost and expense, including but not limited to attorney fees, cost of investigation, defense and settlements or awards, the County, its Agencies, Districts, Special Districts and Departments, their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents and representatives in any such action or claim. With respect to any action or claim subject to indemnification herein by

City, City shall, at its sole cost, have the right to use counsel of its own choice and shall have the right to adjust, settle, or compromise any such action or claim without the prior consent of County; provided, however, that any such adjustment, settlement or compromise in no manner whatsoever limits or circumscribes City's indemnification of County. City's obligat ions hereunder shall be satisfied when City has provided to County the appropriate form of dismissal (or similar document) relieving the County from any liability for the action or claim involved. Any insurance coverage shall in no way limit or circumscribe City's obligations to indemnify and hold harmless the County.

8.2 Indemnification by County. County shall indemnify and hold harmless the City, its Agencies, Districts, Special Districts and Departments, their respective directors, officers, elected and appointed officials, employees, agents and representatives from any liability, claim, damage or action whatsoever, based or asserted upon any act or omission of County, its officers, employees, contractors, agents or representatives arising out of or i n any way relating to this Agreement, including but not limited to property damage, bodily injury, or death. County shall defend, at its sole cost and expense, including but not limited to attorney fees, cost of investigation, defense and settlements or a wards, the City, its Agencies, Districts, Special Districts and Departments, their respective directors, officers, elected and appointed officials, employees, agents and representatives in any such action or claim. With respect to any action or claim subject to indemnification herein by County, County shall, at its sole cost, have the right to use counsel of its own choice and shall have the right to adjust, settle, or compromise any such action or claim without the prior consent of City; provided, however, that any such adjustment, settlement or compromise in no manner whatsoever limits or circumscribes County's indemnification of City. County's obligations hereunder shall be satisfied when County has provided to City the appropriate form of dismissal (or similar document) relieving the City from any liability for the action or claim involved. Any insurance coverage shall in no way limit or circumscribe County's obligations to indemnify and hold harmless the City.

9. ADMINISTRATION

The City M anager of City shall administer this Agreement on behalf of City, and the Sheriff shall administer this Agreement on behalf of County.

10. RECORDS

County shall maintain adequate records to discharge its responsibilities under this Agreement, and shall permit inspection of County’s appropriate records that relate to City services under this Agreement, as allowed by law. County shall provide City acce ss to appropriate records pertaining to City services for approval, funding or auditing services, upon reasonable notice. County shall maintain such records for periods of time as provided by law or records retention schedules duly adopted by the appropriate legislative body. Covenants under this Section shall survive the termination of this Agreement.

11. ALTERATION OF TERMS

No addition to, or alteration of, the terms of this Agreement, whether by written or verbal understanding of the parties, their officers, agents, or employees, shall be valid unless made in the form of a written amendment to this Agreement which is formally approved and executed by both parties.

No waiver of any term or condition of this Agreement by either party shall be a continuing waiver thereof.

12. NOTICES

Any notices required or desired to be served by either party upon the other shall be addressed to the respective parties as set forth below:

County City
Chad Bianco, Sheriff City of Lake Elsinore
Riverside County Sheriff’s Office 130 S Main Street Post Office Box 512 Lake Elsinore, CA 92530
Riverside, California 92502 Attn: City Manager

or to such other addresses as from time to time may be designated by the respective parties. An information copy of any notice to County shall also be sent to:

Clerk of the Board of Supervisors
County of Riverside
4080 Lemon Street, 1
st Floor
Riverside, California 92501

Notice shall be deemed given when in writing and delivered personally or mailed with confirming delivery receipt addressed as set out above.

13. SEVERABILITY

If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall continue in full force and effect.

14. STANDARD OF CARE

In performing the police services required by this Agreement, County agrees to use that degree of care and skill ordinarily exercised under similar circumstances by law enf orcement officers in performance of the duties required by this Agreement. All Sheriff’s personnel who provide general and specialized law enforcement services to City pursuant to this Agreement shall have met the minimum qualifications designated for their specific classification, including a background investigation.

15. JURISDICTION AND VENUE

This Agreement shall be construed under the laws of the State of California. In the event any action or proceeding is filed to interpret, enforce, challenge, or invalidate any term of this Agreement, venue shall lie only in the state or federal courts in or nearest to Riverside County.

16. ENTIRE AGREEMENT

This Agreement is intended by the parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions

thereof and supersedes any and all prior and contemporaneous agreements and understandings, oral or written, in connection therewith.

17. ELECTRONIC/DIGITAL SIGNATURES

This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each party of this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this Agreement. The Parties further agree that the electronic signatures of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among parties in Califor nia, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties . For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (h) of Section 1633.2 of the Civil Code.

[Signatures on Following Page]

10 IN WITNESS WHEREOF, the City of Lake Elsinore by minute order or resolution duly adopted by its City Council, has caused this Agreement to be signed by its Mayor and attested and sealed by its Clerk, and the County of Riverside, by order of its Board of Supervisors, has caused this Agreement to be subscribed by the Chair of said Board and sealed and attested by the Clerk of said Board, all on the dates indicated below.

CITY OF LAKE ELSINORE,
a General Law City

Dated:_________________ By:________________________ Brian Tisdale, Mayor

ATTEST:

Name:

Title:

By:___________________

COUNTY OF RIVERSIDE,
a political subdivision of the State of California

Dated:__________________ By:___________________________ V. Manuel Perez
Chair of the Board of Supervisors
Riverside County Board of Supervisors

ATTEST: APPROVED AS TO FORM:

Kimberly Rector Minh C. Tran
Clerk of the Board County Counsel

By:____________________ By:_________________
Deputy Amrit P. Dhillon
Deputy County Counsel

11 AT

TACHMENT A
C

ITY OF LAKE ELSINORE

LEVEL OF SERVICE
Average Patrol Services

132 supported hours per day.

nal 2 of 3
A

GREEMENT FOR LAW ENFORCEMENT SERVICES
B

ETWEEN THE CITY OF LAKE ELSINORE
AND T

HE COUNTY OF RIVERSIDE
TH
IS AGREEMENT FOR LAW ENFORCEMENT SERVICES (“Agreement”) is made and entered into by and between the CITY OF LAKE ELSINORE, a General Law City, hereinafter “City,” and the COUNTY OF RIVERSIDE, a political subdivision of the State of California , on behalf of the Riverside County Sheriff’s Office, hereinafter “County”, sometimes collectively referred to herein as the “parties” and individually as a “party”.

I
T IS THEREFORE AGREED AS FOLLOWS:

1. TER
M

1.1 Effective Dates. This Agreement shall be effective from July 1, 2025 through June 30, 2030.

2. S

COPE OF SERVICE

2.2A Definitions. For purposes of this Agreement the following are some of the more common definitions which shall apply, but shall not be limited by this reference:

b) The California Law Enforc ement Telecommunications System Access ( CLETS) shall mean that access to the Department of Justice computers provided by County to City.

c) Work Station shall mean those County devices and software, which are used by City to access RMS functions and the CLETS.

e) County Services shall mean the collective hardware and software, work LAWNET, stations, RMS functions and CLETS.

2.2D Establishment of RMS Rates and Payment of Costs. Establishment of RMS rates and payments for provided services shall be as specified in Sections 7.2 and 7.4 of this Agreement.

3. LEVEL OF SERVICE

3.1 Level of Service Specified. County shall provide all enforcement services at the level specified in Attachment A, attached hereto and incorporated herein by this reference.

3.2 Variation in Level of Service. Variations in the level of service shall be made by amendment, as provided for in Section 11 of this Agreement, and under the following terms:

4. CHIEF OF POLICE

The Sheriff will, to the extent practical, coordinate appointment of a Police Chief with City and consult with City on final selection for the position.

5. PROVISION OF SUPERVISION, LABOR, AND EQUIPMENT

5.3 City-Owned Motorcycles and Specialized Support Vehicles. In the event City chooses to provide motorcycles or specialized support vehicles for use in providing services hereunder, the

6. EMPLOYMENT STATUS OF PERSONNEL

7. COMPENSATION

The County agrees that Facility Rate Station charges to City will not be increased due to the Sheriff’s decision to move Contract or unincorporated County Patrol positions from the Station.

8. INDEMNIFICATION AND HOLD HARMLESS

9. ADMINISTRATION

The City M anager of City shall administer this Agreement on behalf of City, and the Sheriff shall administer this Agreement on behalf of County.

10. RECORDS

11. ALTERATION OF TERMS

No waiver of any term or condition of this Agreement by either party shall be a continuing waiver thereof.

12. NOTICES

Any notices required or desired to be served by either party upon the other shall be addressed to the respective parties as set forth below:

County City
Chad Bianco, Sheriff City of Lake Elsinore
Riverside County Sheriff’s Office 130 S Main Street Post Office Box 512 Lake Elsinore, CA 92530
Riverside, California 92502 Attn: City Manager

or to such other addresses as from time to time may be designated by the respective parties. An information copy of any notice to County shall also be sent to:

Clerk of the Board of Supervisors
County of Riverside
4080 Lemon Street, 1
st Floor
Riverside, California 92501

Notice shall be deemed given when in writing and delivered personally or mailed with confirming delivery receipt addressed as set out above.

13. SEVERABILITY

If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall continue in full force and effect.

14. STANDARD OF CARE

15. JURISDICTION AND VENUE

16. ENTIRE AGREEMENT

thereof and supersedes any and all prior and contemporaneous agreements and understandings, oral or written, in connection therewith.

17. ELECTRONIC/DIGITAL SIGNATURES

[Signatures on Following Page]

CITY OF LAKE ELSINORE,
a General Law City

Dated:_________________ By:________________________ Brian Tisdale, Mayor

ATTEST:

Name:

Title:

By:___________________

COUNTY OF RIVERSIDE,
a political subdivision of the State of California

Dated:__________________ By:___________________________ V. Manuel Perez
Chair of the Board of Supervisors
Riverside County Board of Supervisors

ATTEST: APPROVED AS TO FORM:

Kimberly Rector Minh C. Tran
Clerk of the Board County Counsel

By:____________________ By:_________________
Deputy Amrit P. Dhillon
Deputy County Counsel

11 AT

TACHMENT A
C

ITY OF LAKE ELSINORE

LEVEL OF SERVICE
Average Patrol Services

132 supported hours per day.

Non-Dedicated Positions
O ne (1) Deputy Sheriff (unsupported) – Lake Patrol
Dedicated Positions
One (1) Sheriff’s Sergeant position
Three (3) Deputy Sheriff (fully supported) positions – Special Enforcement Team Five (5) Deputy Sheriff (fully supported) positions – Traffic/Motorcycle Team Two (2) Deputy Sheriff (fully supported) positions – Traffic AI One (1) Deputy Sheriff (fully supported) position – Special Enforcement Team - Parks Three (3) Deputy Sheriff (unsupported) – Community Patrol Officer Seven (7) Community Service Officer II positions – Traffic Enforcement Original 3 of 3

GREEMENT FOR LAW ENFORCEMENT SERVICES
B

ETWEEN THE CITY OF LAKE ELSINORE
AND T

I
T IS THEREFORE AGREED AS FOLLOWS:

1. TER
M

1.1 Effective Dates. This Agreement shall be effective from July 1, 2025 through June 30, 2030.

2. S

COPE OF SERVICE

2.2A Definitions. For purposes of this Agreement the following are some of the more common definitions which shall apply, but shall not be limited by this reference:

b) The California Law Enforc ement Telecommunications System Access ( CLETS) shall mean that access to the Department of Justice computers provided by County to City.

c) Work Station shall mean those County devices and software, which are used by City to access RMS functions and the CLETS.

e) County Services shall mean the collective hardware and software, work LAWNET, stations, RMS functions and CLETS.

2.2D Establishment of RMS Rates and Payment of Costs. Establishment of RMS rates and payments for provided services shall be as specified in Sections 7.2 and 7.4 of this Agreement.

3. LEVEL OF SERVICE

3.1 Level of Service Specified. County shall provide all enforcement services at the level specified in Attachment A, attached hereto and incorporated herein by this reference.

3.2 Variation in Level of Service. Variations in the level of service shall be made by amendment, as provided for in Section 11 of this Agreement, and under the following terms:

4. CHIEF OF POLICE

The Sheriff will, to the extent practical, coordinate appointment of a Police Chief with City and consult with City on final selection for the position.

5. PROVISION OF SUPERVISION, LABOR, AND EQUIPMENT

5.3 City-Owned Motorcycles and Specialized Support Vehicles. In the event City chooses to provide motorcycles or specialized support vehicles for use in providing services hereunder, the

6. EMPLOYMENT STATUS OF PERSONNEL

7. COMPENSATION

The County agrees that Facility Rate Station charges to City will not be increased due to the Sheriff’s decision to move Contract or unincorporated County Patrol positions from the Station.

8. INDEMNIFICATION AND HOLD HARMLESS

9. ADMINISTRATION

The City M anager of City shall administer this Agreement on behalf of City, and the Sheriff shall administer this Agreement on behalf of County.

10. RECORDS

11. ALTERATION OF TERMS

No waiver of any term or condition of this Agreement by either party shall be a continuing waiver thereof.

12. NOTICES

Any notices required or desired to be served by either party upon the other shall be addressed to the respective parties as set forth below:

County City
Chad Bianco, Sheriff City of Lake Elsinore
Riverside County Sheriff’s Office 130 S Main Street Post Office Box 512 Lake Elsinore, CA 92530
Riverside, California 92502 Attn: City Manager

or to such other addresses as from time to time may be designated by the respective parties. An information copy of any notice to County shall also be sent to:

Clerk of the Board of Supervisors
County of Riverside
4080 Lemon Street, 1
st Floor
Riverside, California 92501

Notice shall be deemed given when in writing and delivered personally or mailed with confirming delivery receipt addressed as set out above.

13. SEVERABILITY

If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall continue in full force and effect.

14. STANDARD OF CARE

15. JURISDICTION AND VENUE

16. ENTIRE AGREEMENT

thereof and supersedes any and all prior and contemporaneous agreements and understandings, oral or written, in connection therewith.

17. ELECTRONIC/DIGITAL SIGNATURES

[Signatures on Following Page]
10 I
N WITNESS WHEREOF, the City of Lake Elsinore by minute order or resolution duly adopted by its City Council, has caused this Agreement to be signed by its Mayor and attested and sealed by its Clerk, and the County of Riverside, by order of its Board of Supervisors, has caused this Agreement to be subscribed by the Chair of said Board and sealed and attested by the Clerk of said Board, all on the dates indicated below.

CITY OF LAKE ELSINORE,
a General Law City
D
ated:_________________ By:________________________ Brian Tisdale, Mayor
A
TTEST:

Name:

Title:

B
y:___________________
C

OUNTY OF RIVERSIDE,
a political subdivision of the State of California
D
ated:__________________ By:___________________________
V. Manuel Perez
Chair of the Board of Supervisors
Riverside County Board of Supervisors
A
TTEST: APPROVED AS TO FORM:

Kimberly Rector Minh C. Tran
Clerk of the Board County Counsel
B
y:____________________ By:_________________
Deputy Amrit P. Dhillon
Deputy County Counsel
11 AT

TACHMENT A
C

ITY OF LAKE ELSINORE

LEVEL OF SERVICE
Average Patrol Services

132 supported hours per day.

Page 1 of 4 ends

REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:June 10, 2025
Subject:Housing Successor Annual Report for Fiscal Years 2013-14 Through 2023- 24 Regarding the Low- and Moderate-Income Housing Asset Fund Report Pursuant to Senate Bill 341
Recommendation
Receive and file the Housing Successor Annual Report for Fiscal Years 2013-14 Through 2023-

24. Background
Following the dissolution of redevelopment in 2012, all former redevelopment agencies in California were required to designate a housing successor agency to receive all existing housing assets and assume any ongoing housing responsibilities of the former agency related to its mandated 20% set aside of revenue for affordable housing. The City of Lake Elsinore (“City”) established itself as the Housing Successor Agency (“Housing Successor”) to the former Lake Elsinore Redevelopment Agency (“Agency”) with the adoption of Resolution No. 2012-001 dated January 10, 2012.

The Housing Successor SB 341 Annual Report (Report) regarding the Low- and Moderate- Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1. The purpose of this Report is to provide the governing body of the Housing Successor with an annual report on the housing assets and activities of the Housing Successor under the Dissolution Law. This cumulative report covers the activities of the City as the Housing Successor from Fiscal Year (“FY”) 2013-14 through FY 2023-24.

The Report includes information on the deposits to, ending balance of, and expenditures from the LMIHAF. A description of the Housing Successor’s assets and any transfers of assets to other housing successor agencies are also addressed. The report discusses the Housing Successor’s current projects, acquisitions of any real property since February 1, 2012, and any outstanding obligations.

Housing Successor Annual Report for Fiscal Years 2013-14 Through 2023-24

Page 2 of 4 ends

Discussion
Legal Requirements for Housing Successors

1. HSC Section 34176.1 imposes three separate tests on the Housing Successor, which the Report addresses: Expenditures and housing production are subject to income targets (income proportionality test).

2. Expenditures and housing production are subject to age targets (senior housing test).

3. Housing successors may not accumulate an “excess surplus,” or a high unencumbered cash balance based on certain thresholds (excess surplus test).

Income Proportionality Test
Section 10 of the Lake Elsinore Successor Annual Report provides the required breakdown of expenditures within the LMIHAF by income category to determine whether the statutory thresholds have been met. Due to non-compliance in the first period, the Housing Successor became subject to more stringent income proportionality restrictions that require 50 percent of all housing development expenditures to be allocated to units for extremely low-income households.

Table 4.1
Source: Lake Elsinore Successor Annual Report
For the second five-year compliance period, from FY 2019-20 through FY 2023-24, the Housing Successor has spent a total of approximately $5.7 million on development activities. Of that total, $2,735,487 (48%) has been allocated to extremely low-income households, including an upcoming project known as the Riley Senior Apartments, while $2,880,904 (51%) has been allocated to very low-income units at the Cottages at Mission Trail, and $59,576 (1%) has been allocated to low-income households. Unlike the first five-year period, the Housing Successor has complied with LMIHAF expenditure limits for the second five-year period.

Ext.LowOtherExt.LowVeryLowLowRentalUnitsUnits<30%AMI30-60%AMI60-80%AMIFY2013-14 $0$0$0$0$0FY2014-15 $0$0$0$0$0FY2015-16 $0$0$0$0$0FY2016-17 $0$80,725$0$80,725$0FY2017-18 $0$8,234,210$0$8,234,210$0FY2018-19 $0$3,674,987$0$3,655,459$19,528TotalExpenditures$0$11,989,921$0$11,970,393$19,528SB341Limitation>30%<70%>30%N/A<20%Five-YearPeriodProportion0%100%0%99.8%0.2%Compliant(Yes/No) NoNoNoN/AYes FirstFive-YearPeriod(FY2013-14throughFY2018-19)
Housing Successor Annual Report for Fiscal Years 2013-14 Through 2023-24

Page 3 of 4 ends

Table 4.3
Source: Lake Elsinore Successor Annual Report
The City has made important steps towards overall compliance in recent years and is currently developing two more qualifying housing projects.

Senior Housing Test
This section provides the percentage of units of deed-restricted rental housing restricted to seniors and assisted within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing. The Housing Successor complies with the limit, allowing no more than 50 percent of the total aggregate number of rental units produced within the preceding ten years to be restricted to seniors. The Housing Successor, City, and former Agency have assisted four projects in the past ten years, of which one 16-unit project is restricted to seniors. Of the total units assisted in the rolling ten-year period, only 4 percent have been restricted to seniors. Due to the nature of the ten-year rolling compliance period, Table 6 below only reports on the current ten-year period, which is FY 2014-15 through FY 2023-24.

Table 6
Source: Lake Elsinore Successor Annual Report
Excess Surplus Test
The LMIHAF may not accumulate an “excess surplus,” or an unencumbered amount that exceeds the greater of $1 million or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available LMIHAF on affordable housing.

Ext.LowOtherExt.LowVeryLowLowRentalUnitsUnits<30%AMI30-60%AMI60-80%AMIFY2019-20$2,255,171$468,841$2,255,171$458,131$10,710FY2020-21 $0$849,3080819,30830,000FY2021-22$395,133$825,658395,133807,61018,048FY2022-23 $23,096$795,855$23,096$795,855$0FY2023-24 $62,087$818$62,087$0$818TotalExpenditures$2,735,487$2,940,480$2,735,487$2,880,904$59,576SB341Limitation>30%<70%>30%N/A<20%48%52%48%51%1%Compliant(Yes/No) YesYesYesN/AYesSource:CityofLakeElsinore SecondFive-YearPeriod(FY2019-20throughFY2023-24)

Housing Successor Annual Report for Fiscal Years 2013-14 Through 2023-24

Page 4 of 4 ends

Up until the most recent Fiscal Year, the Housing Successor always had an unencumbered cash balance less than the surplus limit and had not accumulated an excess surplus in any fiscal year since FY 2013-14.

In the most recent fiscal year, the Housing Successor accumulated an excess surplus of $2,041,832, which must be spent or encumbered by fiscal year 2026-27.

Fiscal Impact
No fiscal impact.

Attachments
Attachment 1 - Housing Successor Annual Report for Fiscal Years 2013-14 Through 2023-24 City Manager's Office
FY2013-14FY2014-15FY2015-16FY2016-17FY2017-18FY2018-19UnencumberedBalanceCalculationCashBeginningBalance5,545,6295,130,9995,923,3466,564,7486,199,5024,635,471Encumbrances---12,594,27612,594,2764,425,066UnencumberedAmount5,545,629$5,130,999$5,923,346$-$-$210,405$SurplusLimitCalculationCurrentYearDeposits3,952,0971,053,644186,8295,281479,7815,797,576PreceedingFourYearsofDeposits5,636,2899,588,38610,642,03010,828,8585,197,8501,725,534$1,000,0001,000,0001,000,0001,000,0001,000,0001,000,0001,000,000GreaterNumber5,636,289$9,588,386$10,642,030$10,828,858$5,197,850$1,725,534$ExcessSurplusCalculationUnencumberedlessGreaterNumber(90,660)(4,457,387)(4,718,684)(10,828,858)(5,197,850)(1,515,129)ExcessSurplusNoneNoneNoneNoneNoneNone

HOUSING SUCCESSOR ANNUAL REPORT
FOR FISCAL YEARS 2013-14 THROUGH 2023-24
City of Lake Elsinore

TABLE OF CONTENTS
INTRODUCTION .................................................................................................................... 1 Scope of this Housing Successor Annual Report.................................................................. 1 Assets Transferred to the Housing Successor ..................................................................... 1 BACKGROUND ...................................................................................................................... 3 Legal Requirements Pertaining to Housing Successors ........................................................ 3 Permitted Uses of Housing Asset Funds ............................................................................. 3 Limits on the Accumulation of Housing Funds (Excess Surplus) ............................................ 6 HOUSING ASSET FUND ACTIVITY ......................................................................................... 6 Deposits ........................................................................................................................... 6 Ending Cash and Fund Balance.......................................................................................... 7 Expenditures..................................................................................................................... 9 Expenditure Proportionality .............................................................................................. 10 Housing Asset Fund Portfolio ........................................................................................... 12 Real Property and Disposition Status ................................................................................ 14 Loans Receivable ............................................................................................................ 15 Senior Rental Housing Limit Compliance........................................................................... 16 Excess Surplus ............................................................................................................... 17 OTHER INFORMATION ........................................................................................................ 19 Transfers to Other Housing Successors ............................................................................ 19 Homeownership Unit Inventory ......................................................................................... 19 APPENDIX 1 – HOUSING ASSET TRANSFER FORM ............................................................. 20 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS ......................... 21 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS ............................. 22

INTRODUCTION
Following the dissolution of redevelopment in 2012, all former redevelopment agencies in California were required to designate a housing successor agency to receive all existing housing assets and assume any ongoing housing responsibilities of the former agency related to its mandated 20% set aside of revenue for affordable housing. The City of Lake Elsinore (“City”) established itself as the Housing Successor Agency (“Housing Successor”) to the former Lake Elsinore Redevelopment Agency (“Agency”) with the adoption of Resolution No. 2012-001 dated January 10, 2012. In addition to overseeing housing assets and ensuring that all remaining funds are spent on affordable housing efforts, housing successors must report annually on their activities as required by Senate Bill 341. The Housing Successor Annual Report (“Annual Report”) details the activity of the Housing Successor. It establishes whether it complies with various expenditure and asset requirements as outlined in the Health and Safety Code (“HSC”) Section 34176.1(f). The Annual Report for the previous fiscal year shall be provided to the housing successor’s governing body and posted on its website. This cumulative report covers the activities of the City as the Housing Successor from Fiscal Year (“FY”) 2013-14 through FY 2023-24.

SCOPE OF THIS HOUSING SUCCESSOR ANNUAL REPORT
The Annual Report is limited to the City’s activities as they relate to its role as Housing Successor, rather than all housing functions of the City in general, and describes compliance with various annual, five-year, and ten-year housing expenditure and production requirements. Since the dissolution of the former Redevelopment Agency, the City has maintained all transferred assets, liabilities, and housing activities in the Lake Elsinore Housing Asset Fund (Fund 617).

ASSETS TRANSFERRED TO THE HOUSING SUCCESSOR
Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with the housing activities of the former Redevelopment Agency were transferred to the designated housing successor. The Housing Successor prepared a Housing Asset Transfer (“HAT”) Form that provided an inventory of all housing assets transferred from the Agency to the Housing Successor. This included:

1. Real properties;

2. Personal property;
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 1 3. Low- and Moderate-Income Housing Fund (“LMIHF”) encumbrances;

4. Loans/Grants Receivables;

5. Rents/ Operations; and

6. Deferrals.

The HAT was approved by the California Department of Finance (“DOF”) on September 17, 2012. It is important to distinguish that housing successor assets that were not transferred from the former Agency or generated by or purchased with assets from the former Agency are not subject to HSC Section 34176.1.

A copy of the HAT is provided as Appendix 1.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 2 BACKGROUND
This section summarizes the legal requirements for use of housing successor assets that are addressed in this Report.

LEGAL REQUIREMENTS PERTAINING TO HOUSING SUCCESSORS
In general, housing successors must comply with three major requirements pursuant to HSC Section 34176.1:

1. Expenditures and housing production are subject to income and age targets.

2. Housing successors may not accumulate an “excess surplus,” or a high unencumbered cash balance based on certain thresholds.

3. Properties must be developed with affordable housing or sold within five to ten years of the DOF approving the HAT.

Appendix 2 provides a more detailed summary of the reporting requirements that are addressed in this Report.

PERMITTED USES OF HOUSING ASSET FUNDS
Pursuant to HSC Section 34176.1, former Agency assets and the revenues generated by those assets, are to be maintained in a Low- and Moderate-Income Housing Asset Fund (“Housing Asset Fund”). In the case of Lake Elsinore, Housing Successor funds and activity are recorded in Fund 617, which is Lake Elsinore’s Housing Asset Fund. Housing Asset Funds may be spent on:
• Administrative costs for the operation of the housing successor agency. The law allows a housing successor to spend the greater of:
o
o
$200,000 per year adjusted annually for inflation, as determined annually by the State’s Department of Housing and Community Development )”HCD”), or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable on the HAT (“Portfolio”), whichever is greater.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 3 Since dissolution, the Housing Successor’s property and loan portfolio had an asset value large enough that 5% of this amount has always exceeded the alternative annual limit of $200,000 adjusted for inflation. Therefore, the Housing Successor’s administrative spending limit for every fiscal year since dissolution has been higher than the HCD $200,000 limit adjusted annually for inflation.
•
•
Homeless prevention and rapid rehousing services up to $250,000 per year, if the former redevelopment agency did not have any outstanding inclusionary housing or replacement housing production requirements as of 2012. Lake Elsinore is eligible for this expense because the former Agency had met its inclusionary housing and replacement housing production requirements upon dissolution.

Affordable housing development assisting households up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets over a five- or ten-year period.

Five-Year Income Proportionality on Development Expenditures: Any Housing Asset Funds may be spent on the development of affordable housing projects affordable to low, very low, and extremely low-income households. “Development” is defined in HSC Section 33413 as new construction, acquisition, rehabilitation, or the preservation of affordable housing developments.

During each five-year compliance period, at least 30 percent of total development expenditures must assist extremely low-income households (up to 30 percent AMI), while no more than 20 percent may assist low-income households (between 60-80 percent AMI). The remaining balance of such expenditures may be used on very low-income households (households earning between 30-60 percent AMI) so long as the minimum expenditures on very low households are met.

Housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80 percent AMI, as long as it was 20 percent or less of the total expenditures during the five-year compliance period.

Should a housing successor not spend at least 30 percent of its development expenditures on extremely low-income households, or exceed the amount spent on low-income Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 4 households, future expenditures are subject to greater restrictions until these proportionality targets are met.

Specifically, if a housing successor is unable to spend at least 30 percent of its development expenditures on extremely low units, it is required to increase this spending on extremely low- income units to 50 percent until compliant with the 30 percent threshold; a housing successor that spends more than 20 percent of its development expenditures on low-income units cannot spend any further funds on low-income developments until it is at or below the 20 percent threshold. As such, tracking these expenditures and their progress over the corresponding five-year period is an important function of the Annual Report.

This Report covers the Housing Successor’s expenditures during the entire first and second five-year compliance periods.

Ten-Year Age Proportionality: If more than 50 percent of the total aggregate number of rental units produced by the city, housing successor, or former redevelopment agency during the past 10 years are restricted to seniors, the housing successor may not spend more Housing Asset Funds on senior housing.

It is important to stress that housing successor expenditure and production requirements are measured on different timeframes:
• One-Year Limits: Administrative Allowance and Homeless Prevention Allowance. Compliance is evaluated annually and resets every year.
• Five-Year Limit: Expenditures by Income Level. Compliance is evaluated over a fixed five-year period set by law, the first five-year period being July 1, 2013, to June 30, 2019, the second period being July 1, 2019, to June 30, 2024.
• Ten-Year Limit: Number of Senior Deed-Restricted Units Assisted. Compliance is evaluated based on a rolling ten-year period that is different every year.

Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 5 LIMITS ON THE ACCUMULATION OF HOUSING FUNDS (EXCESS

SURPLUS)
State law limits how much cash a housing successor may retain and, if it fails to commit and spend these funds in a reasonable timeframe, the housing successor must transfer unspent funds to HCD for use on State housing programs.

HSC Section 34176.1(d) establishes a limit, known as an “excess surplus” on the amount of unencumbered Housing Asset Fund cash based on the greater of:
•
•
$1,000,000, or
The total amount of deposits made into the Housing Asset Fund over the preceding four years.

Only amounts in excess of this threshold are considered an excess surplus. Once an excess surplus is determined, a housing successor must account for these funds separately and encumber said monies within three years. If after the third year the excess surplus has not been fully encumbered, the remaining balance of the excess surplus is to be transferred to HCD within 90 days. HCD is permitted to use these transferred excess surplus funds anywhere in the State under its Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program.

As part of the Annual Report, a housing successor must disclose any excess surplus and describe the housing successor’s plan for eliminating this excess surplus.

HOUSING ASSET FUND ACTIVITY
This section of the Report details the Housing Successor’s activities since dissolution, beginning with FY 2013-14 to FY 2021-22, as reported in the City’s Fund 617.

DEPOSITS
Tables 1.1 and 1.2 below report the value of funds that were deposited into the Housing Asset Fund each fiscal year. Deposits have consisted of fair market value adjustments on investments, interest on investments, principal and interest payments on loans, miscellaneous revenue, land sale proceeds, and fund transfers.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 6 Table 1.1 – Housing Asset Fund Deposits FYs 2013-14 through FY 2018-19 Deposit Type
FY 2013-14 2 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19FMV on Investments Investment Interest
Loan Repayments 1
Misc. Revenue
Sale of Land
Gain/ Loss
$ 33,886
1,019,758
$ 56,457
130,371
$ (90,623) $ (55,740) $ 105,402
95,904 55,889
479,632
77,912
2,076,084
5,000
-
-
-
-
-
-
-
-
-
-
-
-N/A -
-
-
-
-
-
-
3,530,928
2,250
Transfers -
Total $3,952,097 $ 1,053,644 $ 186,829 $ 5,281 $ 479,781 $ 5,797,576 Source: City of Lake Elsinore
1 Includes ROPS obligations repayments
2 Deposit total for FY 2013-14 as reported in the Annual Comprehensive Financial Report. Deposit type detail was unavailable.

Table 1.2 – Housing Asset Fund Deposits FYs 2019-20 through FY 2023-24 Deposit Type FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FMV on Investments $
Investment Interest
Loan Repayments 1
Misc. Revenue
Sale of Land
54,118 $ (57,271) $ (594,306) $ 18,198 $
$
$
$
552,456
956,489
483,966
11,892
148,008
2,305,418
161,300
5,566,378
143,984 $ 360,249
9,234,661 $2,032,766
-
-
-
-
2,400 51,491 $ 12,503
-
-
-
-
-
-
-
-
-
-
-
Gain/ Loss
Transfers 2,255,171
Total $ 2,507,543 $ 7,927,977 $ 8,835,831 $ 2,423,716 $ 2,004,803 Source: City of Lake Elsinore
1 Includes ROPS obligations repayments

ENDING CASH AND FUND BALANCE
Tables 2.1 and 2.2 below show the Housing Asset Fund balance at the end of each fiscal year since dissolution. The fund balance consists of cash, assets, and receivables held by the Housing Successor, less accounts payable, reserves, obligations, and unavailable revenue.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 7 Table 2.1: Housing Asset Fund - Ending Year Balance FY 2013-14 through FY 2018-19 Balance Type FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Claim on Pooled Cash
Investments - CAMP
Accounts Receivable
Interest Receivable
$ 5,130,999
4,170,548
491,323
$ 5,923,346
4,991,266
$ 6,564,748
5,053,057
$ 6,199,502
5,131,495
9,770
10,772,113
31,273,186
1,100,000
$ 4,635,471
-
$ 3,501,201
-
-
-
-
-
- -
11,526,782
39,175,437
1,100,000
7,520,000
714,210
-
12,321,004
42,365,107
1,100,000
7,520,000
5,074,276
-
9,737,000
65,000
-
18,040,440
828,391
15,659
-
768,369
(312,494)
(752,000)
-
Loan Receivables 32,627,440
1,100,000
32,381,184
1,100,000
31,819,059
1,100,000Lakeview
Mission Trail
Cottages
City Third Lien Mortgage Assist
Pottery Court
Habitat for Humanity
Mission Cottages (Bridge)
1995 Housing
-
-
-
-
-
-
-
-
-
-
9,737,000
-
-
9,737,000
-
-
9,737,000
-
9,737,000 9,737,000
--
-- - - -
18,040,440
3,750,000
9,591,978
-
48,369
(759,631)
18,040,440
3,503,744
9,265,691
18,040,440
2,941,619
10,012,936
-
18,040,440
2,395,746
24,822
-
18,040,439
2,063,788
4,260
2,074,276
768,369
(30,698)
(752,000)
-
SERAF Advances
Accrued Interest Receivable
Due from SARDA - Summerly DDA Obligation
Land Held for Resale
Accounts Payable
-
48,369
(11,360)
48,369
(18,404)
768,369
(28,026)
Retention Payable -
Summerly DDA Obligation - Pledged Housing
Unavailable Revenue
Unearned Revenue
Reserve - Land Held for Resale
Total Asset Balance
- (920,884)
(9,252,179)
(1,186,406) (1,566,533)
(9,591,461) (9,995,810) (10,772,113) (13,601,058) (12,321,004) -
-
-
-
- - - (973,052)
(1,536,737)(48,369) (768,369) (768,369)
$ 41,709,565 $ 42,425,432 $ 42,249,180 $ 41,044,216 $ 43,032,471 $ 43,076,052 Source: City of Lake Elsinore
Table 2.1: Housing Asset Fund - Ending Year Balance FY 2013-14 through FY 2023-24 Balance Type FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Claim on Pooled Cash
Investments - CAMP
Accounts Receivable
Interest Receivable
$ 4,913,479
-
$ 7,422,938 $ 17,894,674 $ 26,565,264 $ 36,292,011
-
-
- -
-
-
380 2,546 2,701
11,727,074
41,536,716
1,100,000
7,520,000
5,074,276
-
9,737,000
65,000
-
8,858,748
42,456,716
1,100,000
7,520,000
5,074,276
35,000
9,737,000
-
6,002,503
40,406,716
4,631,768
34,743,495
4,879,988
27,179,260Loan Receivables
Lakeview
Mission Trail
Cottages
City Third Lien Mortgage Assist
Pottery Court
Habitat for Humanity
Mission Cottages (Bridge)
1995 Housing
- - -
7,520,000
5,074,276
35,000
9,737,000
7,520,000
5,074,276
35,000
9,737,000
7,520,000
5,074,276
35,000
9,737,000
- - -
950,000
18,040,440
-
- - -
18,040,440
-
18,040,440 12,377,219 4,812,984
SERAF Advances - - -
Accrued Interest Receivable
Due from SARDA - Summerly DDA Obligation
Land Held for Resale
Accounts Payable
9,131 7,058 35,929
500,651
768,369
(45,667)
150,800 307,167
911,996
768,369
(2,289,116)
(752,469)
-
438,760
768,369
(180,045)
-
- -
768,369
(73,892)
418,369
(80,474)
Retention Payable -
-
- -
Summerly DDA Obligation - Pledged Housing
Unavailable Revenue
Unearned Revenue
Reserve - Land Held for Resale
Total Asset Balance
- (1,069,534)
(4,631,768)
(1,858,093)
(4,879,988)(11,727,074)
(741)
(7,775,632)
(741)
(6,002,503)
-
-
-
-
-
-- -
$ 45,097,745 $ 51,996,170 $ 59,563,217 $ 61,084,501 $ 62,260,940 Source: City of Lake Elsinore
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 8 EXPENDITURES
Housing successors may expend Housing Asset Funds to cover administrative costs, homeless prevention and rapid rehousing programs, or assist in affordable housing development. Administrative and homeless prevention expenditures are subject to annual compliance limits, while housing development expenditures are subject to five-year proportionality requirements.

Tables 3.1 and 3.2 below illustrate the Housing Successor’s compliance with annual expenditure limits each fiscal year since dissolution. The Housing Successor’s administrative expenditures are limited to $200,000 per year adjusted for inflation, as determined by HCD, or 5% of the Housing Successor’s property and loan portfolio value, whichever is greater. The Housing Successor’s property and loan value has always been large enough such that 5% of the portfolio value has exceeded the HCD limit.

Administrative spending has consistently been less than the applicable expenditure limit and, therefore, the Housing Successor has complied with this requirement since dissolution. To date, the Housing Successor has not spent any funds on homeless prevention or rapid rehousing programs and is therefore in compliance with the $250,000 annual limit.

Table 3.1 Housing Asset Fund Expenditures Annual Compliance FY 2013-14 to FY 2018-19 FY 2013-14 1 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 2 Administration
Expenditures $ 198,051 $
$
169,101
201,600
$
$
49,189
203,000
$
$
110,118
207,200
$
$
58,059
211,500
$
$
516,366
215,500HCD Limit $ 200,000
Portfolio Limit $ 1,633,790 $ 1,621,478 $ 1,593,371 $ 1,602,078 $ 1,997,190 $ 2,156,674 Compliant (Yes/No) Yes Yes Yes Yes Yes Yes
Homeless Prevention
Expenditures $ - $
$
- $
$
- $
$
- $
$
- $
$
-
Limit $ 250,000 250,000 250,000 250,000 250,000 250,000 Compliant (Yes/No) Yes Yes Yes Yes Yes Yes
Source: City of Lake Elsinore
1Expenditures for FY 2013-14 found in the Annual Comprehensive Financial Report. It is unclear from the report how exactly the expenses are broken down, so this report assumes that all expenses were spent on administrative uses. 2Administrative expenditures increased in 2018-19 due to legal fees permitted to be paid by the statute as a result of a successful lawsuit against the Department of Finance.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 9 Table 3.2 Housing Asset Fund Expenditures Annual Compliance FY 2019-20 to FY 2023-24 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Administration
Expenditures $ 61,637 $ 180,244 $ 47,992 $ 83,482 $ 78,763 HCD Limit $ 220,400 $ 223,400 $ 239,000 $ 254,500 $ 263,100 Portfolio Limit $ 2,115,254 $ 2,161,254 $ 2,058,754 $ 1,775,593 $ 1,379,881 Compliant (Yes/No) Yes Yes Yes Yes Yes
Homeless Prevention
Expenditures $
Limit $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 Yes Yes Yes Yes Yes
- $ - $ - $ - $ -
Compliant (Yes/No)
Source: City of Lake Elsinore

EXPENDITURE PROPORTIONALITY
The Housing Successor has expended Housing Asset Funds to assist various affordable housing development projects since FY 2013-14. These expenditures are subject to income proportionality requirements by AMI level within fixed five-year compliance periods.

Table 4.1 below illustrates the Housing Successor’s expenditures on affordable housing developments during the first five-year compliance period, which ended with FY 2018-19. For this first period, the Housing Successor did not satisfy one of the income proportionality requirements, since it failed to spend at least 30 percent of its total housing development expenditures on extremely low-income households (those earning less than 30 percent AMI). The Housing Successor spent a total of approximately $12 million on affordable housing developments in the following income categories: $11,970,393 (99.8%) was allocated to very low-income households (earning between 30-60 percent AMI) such as the Mission Trail Apartments and Cottages at Mission Trail; $19,528 (0.2%) assisted a Habitat for Humanity project for a low income household (earning between 60-80 percent AMI); and no expenditures were allocated to extremely low-income households;.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 10 Table 4.1: Housing Asset Fund Expenditures – Five-Year Compliance First Five-Year Period (FY 2013-14 through FY 2018-19)
Ext. Low
Rental Units
Other
Units
Ext. Low Very Low Low
<30% AMI 30-60% AMI 60-80% AMI
FY 2013-14
FY 2014-15
FY 2015-16
FY 2016-17
FY 2017-18
FY 2018-19
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$80,725
$8,234,210
$3,674,987
$80,725
$8,234,210
$3,655,459 $19,528
$19,528
<20%

0.2%
Yes
Total Expenditures $0 $11,989,921 $0 $11,970,393
SB 341 Limitation
Five-Year Period Proportion
Compliant (Yes/No)
>30% <70%
100%
No
>30% N/A

99.8%
N/A
0%
No
0%
No
As a consequence of not meeting the proportionality requirement in the first period for at least 30% of expenditures to be allocated for extremely low-income households, the Housing Successor was required to allocate 50 percent of all subsequent housing development expenditures to extremely low-income households. In the following FY 2019-20, the Housing Successor spent $2,255,171 to purchase a property at 215 West Graham to be developed as affordable housing for extremely low-income households. This expenditure was more than 80 percent of annual development expenditures for that fiscal year.

For the second five-year compliance period, from FY 2019-20 through FY 2023-24, the Housing Successor spent approximately $5.7 million on development activities. Of that total, $2,735,487 (48%) has been allocated to extremely low-income households, including an upcoming project known as the Riley Senior Apartments, while $2,880,904 (51%) has been allocated to very low-income units at the Cottages at Mission Trail, and $59,576 (1%) has been allocated to low-income households. The Housing Successor has complied with housing asset fund expenditure limits for the second five-year period, as shown in Table 4.2 below.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 11 Table 4.2: Housing Asset Fund Expenditures – Second Five-Year Compliance Second Five-Year Period (FY 2019-20 through FY 2023-24) Ext. Low
Rental Units
$2,255,171
$0
$395,133
$23,096
$62,087
$2,735,487
>30%
Other
Units
Ext. Low Very Low Low
<30% AMI 30-60% AMI 60-80% AMI
$2,255,171
0 395,133
$23,096
$62,087
$2,735,487
>30%
FY 2019-20
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
$468,841
$849,308
$825,658
$795,855
$818
$458,131
819,308
807,610
$795,855
$0
$10,710
30,000
18,048
$0
$818
Total Expenditures $2,940,480
<70%
$2,880,904
N/A
$59,576
<20%
1%
SB 341 Limitation
48% 52% 48% 51%
Compliant (Yes/No) Yes Yes Yes N/A Yes
Source: City of Lake Elsinore
The Housing Successor will continue to monitor and ensure that it meets all annual and five-year compliance requirements for all administrative, homeless assistance, and housing development expenditures for the next five-year compliance period.

HOUSING ASSET FUND PORTFOLIO
The Housing Successor portfolio includes seven land parcels and four loans transferred from the former Agency on the HAT, as well as SERAF and 1995 Housing Interfund loan payments due from the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore (“Successor Agency”).

Since dissolution, the Housing Successor has acquired several new properties and loans. Tables 5.1 and

5.2 below detail all of the Housing Successor’s real property (at purchase values) and loans receivable (at principal value without accrued interest) for each fiscal year since dissolution.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 12 Table 5.1: Real Properties and Loans Receivable FY 2013-14 to FY 2018-19 Ending Year Balance
Asset FY2013-14
48,369
FY2014-15
48,369
FY2015-16 FY2016-17 FY2017-18 FY2018-19
Real Properties
HAT Properties (7 parcels)
Land held for resale
Subtotal
48,369 48,369
720,000
768,369
48,369
720,000
768,369
48,369
720,000
768,36948,369 48,369 48,369
Loan Receivables
Loan - Lakeview Apartments
Loan - Pottery Court
1,100,000
9,737,000
18,040,440
1,100,000
9,737,000
18,040,440
1,100,000
9,737,000
18,040,440
1,100,000
9,737,000
18,040,440
1,100,000
9,737,000
18,040,440
7,520,000
714,210
-
1,100,000
9,737,000
18,040,440
7,520,000
5,074,276
65,000
Loan - 1995 Housing Interfund
Loan - Mission Trail Apartments
Loan - Cottages @ Mission trail
Loan - Habitat for Humanity
Loan - Mission Cottages Bridge
Loan - City Third Lien Mortgage Assist
Loan - SERAF Advances
Subtotal
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,750,000 3,503,744 2,941,619 2,395,746 2,063,788 828,391 $ 32,627,440 $ 32,381,184 $ 31,819,059 $ 31,273,186 $ 39,175,438 $ 42,365,107 Portfolio Value 32,675,809 32,429,553 31,867,428 32,041,555 39,943,807 43,133,476 Source: City of Lake Elsinore
Table 5.2: Real Properties and Loans Receivable FY 2019-20 to FY 2023-24 Ending Year Balance
Asset FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Real Properties
HAT Properties (7 parcels)
Land held for resale
Subtotal
48,369
720,000
768,369
48,369
720,000
768,369
48,369
720,000
768,369
48,369
720,000
768,369
48,369
370,000
418,369
Loan Receivables
Loan - Lakeview Apartments
Loan - Pottery Court
1,100,000
9,737,000
18,040,440
7,520,000
1,100,000
9,737,000
18,040,440
7,520,000
5,074,276
-
- - -
9,737,000
4,812,984
7,520,000
5,074,276
-
9,737,000
18,040,440
7,520,000
5,074,276
9,737,000
12,377,219
7,520,000
5,074,276
Loan - 1995 Housing Interfund
Loan - Mission Trail Apartments
Loan - Cottages @ Mission trail
Loan - Habitat for Humanity
Loan - Mission Cottages Bridge
Loan - City Third Lien Mortgage Assist
Loan - SERAF Advances
Subtotal
5,074,276
65,000 - -
-
-
-
950,000
35,000
-
35,000
-
-
35,000
-
-
35,000
--
$ 41,536,716 $ 42,456,716 $ 40,406,716 $ 34,743,495 $ 27,179,260 Portfolio Value 42,305,085 43,225,085 41,175,085 35,511,864 27,597,629 Source: City of Lake Elsinore
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 13 REAL PROPERTY AND DISPOSITION STATUS
HSC Sections 33334.16 and 34176.1(e) require that all real properties acquired by the former Agency prior to February 1, 2012, and transferred to the Housing Successor, be developed for affordable housing purposes or disposed of within five years from the date DOF approved the HAT, or September 17, 2017.

If the Housing Successor is unable to meet this deadline, the law allows for a five-year extension via adoption of a resolution. The City adopted a Resolution on October 24, 2017, extending the property disposition deadline to September 17, 2022. In the event that physical development for this purpose had not begun by the end of the extended period, properties should be sold, and the proceeds deposited into the Housing Fund. The Housing Successor has continued to evaluate potential sale and development opportunities but has not successfully disposed of all properties to date.

The former Agency transferred seven land parcels to the Housing Successor pursuant to the HAT, which are further described below:
• Land Parcels Transferred on the HAT (APN 375-293-029, 375-293-030, 375-321-029, 375-321- 030, 375-321-031, 375-321-032, 375-321-033): These seven (7) parcels were transferred to the Housing Successor on the HAT. These are tax defaulted parcels that the County foreclosed on which the former Agency purchased in 2009. To date none of the parcels have been developed.

The Housing Successor is currently evaluating the feasibility of developing the parcels with affordable housing, however, many of the parcels are small and may be difficult to develop. The Housing Successor may sell the properties to the City in which case proceeds would be deposited in the Housing Asset Fund.

Since dissolution, the Housing Successor has acquired property for the purposes of developing affordable housing. This property is not subject to the 2022 disposition deadline, as it was acquired post dissolution:
• Land Held for Resale: In FY 2016-17, the City Council of Lake Elsinore approved the purchase of sixteen (16) Successor Agency parcels using Housing Asset Funds for use as affordable housing.

The parcels were purchased at a fair market value of $720,000. Twelve (12) of the parcels, located along Spring Street, would be difficult to develop. Therefore, the City is considering purchasing the parcels to use as additional library parking. No offer has been made on these parcels yet. The remaining four (4) parcels, located on Pottery and Spring Streets, are currently under negotiation with a developer to build affordable housing units.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 14 LOANS RECEIVABLE
Four (4) Affordable Housing Development loans were transferred from the former Agency to the Housing Successor as part of the Housing Asset Transfer Form approved by DOF on September 17, 2012. Since dissolution, the Housing Successor has issued additional loans to assist several housing development projects.
•
•
Lakeview Apartments: The Housing Successor provided a total of $1,100,000 in 2010 to assist in the development of the Lakeview Apartments, a two-phase multi-family rental project. Phase I includes 88 units designated for low-income (80% AMI), while Phase II is designated for very low (50% AMI) and low-income (80% AMI) households. As of FY 2021-22, this loan has been completely repaid.

Pottery Court: The Housing Successor assisted with the acquisition and construction of a new 113-unit multi-family rental project located at 295 W Summer Ave. All units in the project are required to be rented to very low-income (50% AMI) households. In 2011, the Housing Successor issued a loan with a principal amount of $9,737,000 in Housing Asset Funds to the Pottery Court Apartments. The loan accrues interest at a rate of 3% per year. As of FY 2023-24, the loan remains outstanding.
•
•
Mission Trail Apartments: In 2016, the Housing Successor loaned $7,520,000 to assist the acquisition and construction of the Mission Trail Apartments, a new 81-unit multi-family project.

The project includes 21 units restricted to occupancy by very low-income (50% AMI) and 59 units for low-income (80% AMI) households. The loan accrues interest at a rate of .5% per year. As of FY 2023-24, the loan remains outstanding.

Cottages at Mission Trail: The Housing Successor loaned a total of $5,074,276 in 2017 to assist the development of the Cottages at Mission Trail. The 143-unit multi-family project includes units restricted to occupancy by very low (50% AMI) and low-income (60% AMI) households. As of FY 2023-24, the outstanding balance of this loan is $5,074,276, which includes interest accrued at 3% per year. Later in 2020, a bridge loan was issued in the amount of $950,000, which was entirely repaid in 2021.
• APN: (377-292-033): The Housing Successor provided a $65,000 loan to Habitat For Humanity for the relocation and construction of a single-family owner-occupied housing project. $35,000 of the total loan was used for land acquisition, while the remaining $30,000 was dedicated to project Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 15 development. Per the project agreement, the $30,000 portion of the loan was deemed fully satisfied upon the sale of the project to a qualified homebuyer. The remaining $35,000 portion was assumed by the buyer. The home was purchased in FY 2020-21, and the remaining outstanding balance is $35,000.

The Housing Successor also holds two (2) former Redevelopment Agency Loans which were transferred to the Housing Successor at dissolution. These loans constitute enforceable obligations on the Recognized Obligation Payments Schedule (“ROPS”) of the Successor Agency and are repaid to the Housing Successor with Redevelopment Property Tax Trust Fund (RPTTF) monies. • 1995 Housing Interfund Loan: In 1995, the Lake Elsinore Public Financing Authority (“PFA”) issued its 1995 Series A Tax Allocation Bonds and Series B Subordinate Tax Allocation Revenue Bonds to repay prior loans and finance low- and moderate-income housing and other redevelopment activities. The PFA loaned the proceeds of the bonds to the former Agency, which were deposited into the Agency’s low- and moderate-income housing fund. The low- and moderate-income housing fund then loaned the monies to the redevelopment Project Areas, to be repaid to the low- and moderate-income housing fund with future property tax increment. The Housing Fund (Interfund) Loan is listed as Item 20 on the Successor Agency ROPS. Payments made in any given year are calculated and disbursed based on available RPTTF after deductions for payment of all other debts and obligations of the Agency. • SERAF Advances: The Housing Successor is entitled to repayment of advances made in 2009- 2010 by the former Redevelopment Agency’s low- and moderate-income housing fund to make payments into the Supplemental Educational Revenue Augmentation Fund (“SERAF”) . The loan was to be repaid by the Successor Agency in installments beginning FY 2014-2015 in the amount of $3,750,000. Repayment of the SERAF advances is limited by a formula set forth in AB 1484 and has a priority over repayment of certain other advances. The balance of the loan was fully repaid in FY 2019-20.

SENIOR RENTAL HOUSING LIMIT COMPLIANCE
The Housing Successor complies with the limit allowing no more than 50 percent of the total aggregate number of rental units produced within the preceding ten years to be restricted to seniors. Due to the nature of the ten-year rolling compliance period, Table 6 below only reports on the current ten-year period, which is FY 2014-15 through FY 2023-24. The Housing Successor, City, and former Agency have assisted four projects in the past ten years, of which one 16-unit project is restricted to seniors. Of the Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 16 total units assisted in the rolling ten-year period, only 4 percent have been restricted to seniors. Therefore, the Housing Successor is in compliance with this requirement.

Table 6: Deed-Restricted Units Assisted – 10-Year Compliance FY 2014-15 through FY 2023-24
Senior
Units
0 0
16 0
Non-Senior Total
Units
81 Property Address Date % %Units
81 143
0 14
238
Mission Trail Apartments
Cottages at Mission Trail
Riley Street Senior Apartments
The Anchor
32585 Mission Trail
32675 Mission Trail
200 N. Riley Street
215 W. Graham Ave
FY 17-18
FY 19-20
FY 21-22
FY 19-20
0%
0%
100%
0%
100%
100% 143
0%
100%
94%
16 14
254Total 16 6%
Total Deed-Restricted Senior Units: 6%
Source: City of Lake Elsinore

EXCESS SURPLUS
The Housing Asset Fund may not accumulate an “excess surplus”, or an unencumbered amount that exceeds the greater of $1 million, or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing. Any excess surplus accumulated by a housing successor must be eliminated or encumbered within three fiscal years. If a housing successor fails to comply, it must transfer any excess surplus to HCD within 90 days of the end of the third fiscal year.

The Housing Successor’s potential for an excess surplus was calculated for each fiscal year since dissolution using the beginning cash balance, deposit amounts, and encumbrances as recorded in Fund 617. This calculation matches the excess surplus methodology applied by HCD prior to redevelopment dissolution. The excess surplus calculation for each fiscal year is shown in Table 8.

Table 8: Excess Surplus FY 2013-14 through FY 2023-24
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Unencumbered Balance Calculation
Cash Beginning Balance
Encumbrances
Unencumbered Amount $ 5,545,629
Surplus Limit Calculation
Current Year Deposits
Preceeding Four Years of Deposits
$1,000,000
Greater Number $ 5,636,289
Excess Surplus Calculation
5,545,629
-
5,130,999
-
5,130,999
5,923,346
-
5,923,346
6,564,748
12,594,276
-
6,199,502
12,594,276
-
4,635,471
4,425,066
210,405$
$
$ $ $
$
$
$
3,952,097
5,636,289
1,000,000
1,053,644
9,588,386
1,000,000
186,829
10,642,030
1,000,000
5,281
10,828,858
1,000,000
479,781
5,197,850
1,000,000
5,197,850
5,797,576
1,725,534
1,000,000
1,725,5349,588,386 $ 10,642,030 $ 10,828,858
Unencumbered less Greater Number (90,660)
None
(4,457,387)
None
(4,718,684)
None
(10,828,858)
None
(5,197,850)
None
(1,515,129)
NoneExcess Surplus
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 17 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Unencumbered Balance Calculation
Cash Beginning Balance
Encumbrances
Unencumbered Amount $
Surplus Limit Calculation
Current Year Deposits
Preceeding Four Years of Deposits
$1,000,000
Greater Number $ 6,469,466
Excess Surplus Calculation
3,501,201
2,959,778
541,422
4,913,479
1,196,476
3,717,003
7,422,938
120,000
7,302,938
17,894,674
902,433
16,992,241 $ 23,736,900
24,565,264
828,364
$
$
$ $
$
2,507,543
6,469,466
1,000,000
7,927,977
8,790,181
1,000,000
8,835,831
16,712,878
1,000,000
2,423,716
25,068,927
1,000,000
2,004,803
21,695,068
1,000,000
8,790,181 $ 16,712,878 25,068,927 $ 21,695,068
Unencumbered less Greater Number (5,928,044) (5,073,178) (9,409,939) (8,076,686) 2,041,832 Excess Surplus None None None None $ 2,041,832
Up until the most recent Fiscal Year the Housing Successor had always had an unencumbered cash balance less than the surplus limit and had not accumulated an excess surplus in any fiscal year since FY 2013-14. In the most recent fiscal year the Housing Successor accumulated an excess surplus of $2,041,832 which must be spent or encumbered by fiscal year 2026-27.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 18 OTHER INFORMATION

TRANSFERS TO OTHER HOUSING SUCCESSORS
There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1.

HOMEOWNERSHIP UNIT INVENTORY
Table 9 presents an inventory of affordable homeowner units assisted by the former Agency or Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies.

Table 9: Assisted Unit Inventory - Homeownership
Assisted Unit Inventory - Homeownership
Covenant
Expiration
10/10/64
Affordability Agency Loan
Project Name / Address
APN: 377-292-033
Unit No. Period (Yrs) amount
$ 35,000N/A 45
Source: City of Lake Elsinore
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 19 APPENDIX 1 – HOUSING ASSET TRANSFER FORM
Attached as a separate document.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 20 DEPARTMENT OF FINANCE

HOUSING ASSETS LIST
ASSEMBLY BILL X1 26 AND ASSEMBLY BILL 1484
(Health and Safety Code Section 34176)
Former Redevelopment Agency: The Redevelopment Agency of the City of Lake Elsinore Successor Agency to the Former
Redevelopment Agency: City of Lake Elsinore as Successor Agency of the Redevelopment Agency of the City of Lake Elsinore Entity Assuming the Housing Functions
of the former Redevelopment Agency: City of Lake Elsinore Entity Assuming the Housing Functions
Contact Name: James R. Riley
Barbara Leibold
Title
Title
Director of Admin. Services Phone 951-674-3124, 212
Phone 949-457-6300, 104
E-Mail Address
E-Mail Address
[email protected]
[email protected]
Entity Assuming the Housing Functions
Contact Name: City Attorney/ Agency Counsel
All assets transferred to the entity assuming the housing functions between February 1, 2012 and the date the exhibits were created are included in this housing assets list.

The following Exhibits noted with an X in the box are included as part of this inventory of housing assets:

Exhibit A - Real Property X
X
X
X
X
Exhibit B- Personal Property
Exhibit C - Low-Mod Encumbrances
Exhibit D - Loans/Grants Receivables
Exhibit E - Rents/Operations
Exhibit F- Rents
Exhibit G - Deferrals X
Prepared By: James R. Riley
Date Prepared: 8/1/2012

Exhibit A - Real Property
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Construction Date of
construction
or
acquisition
by the
Interest in
real property
(option to
purchase,
easement,
etc.)
Is the property
encumbered by
a low-mod
Date of
transfer to
Housing
Successor
Agency
or acquisition
cost funded
with Low-Mod
Housing Fund
monies
Construction
or acquisition
costs funded
with other
Construction
or acquisition
costs funded
with non-RDA
funds
Source of
low-mod
housing
Total
square
footage
Square footage
reserved for low-
mod housing
Carrying Value
of Asset
housing
covenant?Item # Type of Asset a/
Land
Legal Title and Description covenant b/ RDA funds former RDA 1 2
3 4
5 6
7 375-293-029
375-293-030
375-321-029
375-321-030
375-321-031
375-321-032
375-321-033
$10,633.21
$12,087.15
$5,093.32
$14,245.21
$1,634.51
$1,634.51
$3,040.63
5,033
5,925
2,688
2,556
2,287
2,645
2,217
5,033
5,925
2,688
2,556
2,287
2,645
2,217
No
No
No
No
No
No
No
CRL
CRL
CRL
CRL
CRL
CRL
CRL
02/01/2012
02/01/2012
02/01/2012
02/01/2012
02/01/2012
02/01/2012
02/01/2012
$10,633.21
$12,087.15
$5,093.32
$14,245.21
$1,634.51
$1,634.51
$3,040.63
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
10/23/2009
10/23/2009
10/23/2009
10/23/2009
10/23/2009
10/23/2009
10/23/2009
Fee Simple
Fee Simple
Fee Simple
Fee Simple
Fee Simple
Fee Simple
Fee Simple
Land
Land
Land
Land
Land
Land
CRL;HOME;
Tax Credit;
Hope VI8
9 Deed of Trust 374-071-028 & 374-072-042
374-071-028 & 374-072-042
N/A
N/A

4.3 Acres

4.3 Acres
Yes
Yes
02/01/2012
02/01/2012
$9,737,000.00
$9,737,000.00
$0
$0
$0
$0
05/26/2009
05/26/2009
Deed of Trust
CovenantsRegulatory Agreement CRL
CRL
CRL
10 Deed of Trust 379-111-012
379-111-012
379-111-011
379-111-015
N/A
N/A
N/A
N/A

4.43 Acres

4.43 Acres
Yes
Yes
02/01/2012
02/01/2012
02/01/2012
02/01/2012
$1,100,000.00 $0
$0
$0
$0
$0
$0
10/12/2010
10/12/2010
10/12/2010
11/01/1999
Deed of Trust
Covenants
Covenants
Covenants
11 Regulatory Agreement
12 Regulatory Agreement
$1,100,000.00

4.43 Acres

5.29 Acres

4.43 Acres

5.29 Acres
Yes
Yes
CRL $0
$0
$0
$5,000,000
MFHRB13 Regulatory Agreement MFHRB; CRL
14 15
16 17
18 19
20 a/ Asset types may include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. b/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.

Exhibit B - Personal Property
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Date of
transfer to
Housing
Successor
Agency
Acquisition
cost funded
with Low-Mod
Housing Fund
monies
Acquisition
costs funded
with other RDA
funds
Acquisition
costs funded
with non-
Date of
acquisition by
the former RDA
Carrying Value
of AssetItem # Type of Asset a/ Description RDA funds
Books & records used
for Affordable Housing
Assets, liabilities,
1 2
Books & Records rights and obligations N/A 02/01/2012 N/A N/A N/A Various 3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
a/ Asset types any personal property provided in residences, including furniture and appliances, all housing-related files and loan documents, office supplies, software licenses, and mapping programs, that were acquired for low and moderate income housing purposes, either by purchase or through a loan, in whole or in part, with any source of funds.

Exhibit C - Low-Mod Encumbrances
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Total amount
currently
owed for the
Enforceable
Obligation
Is the property
encumbered by
a low-mod
Construction or
acquisition cost
funded with Low- acquisition costs
Mod Housing
Fund monies
Type of housing built
or acquired with
enforceably obligated
Date contract for
Enforceable
Obligation was
executed
Construction or Construction or
acquisition costs
funded with non-
RDA funds
Date of
Source of low-
mod housing
covenant b/
construction or
acquisition of
the property
housing
covenant?
Current owner of
the property
funded with
other RDA fundsItem # funds a/ Contractual counterparty Civic Partners-
Elsinore LLC1 Low-Mod Housing 12/26/2002 Civic Partners-Elsinore LLC $ 537,309 No CRL TBD TBD $0

TBD TBD
Civic Partners-
Elsinore LLC;
McMillian-Various payees pursuant to Civic-
McMillin DDA2 Low-Mod Housing 12/26/2002 $15,000/Year Yes CRL Summerly LLC TBD TBD TBD Pottery Court
Housing
Associates L.P.

LMV II Affordable
L.P.

Various payees pursuant to Pottery
Court DDA3
4 Low-Mod Housing
Low-Mod Housing
5/26/2009 $6,000/Year
$6,000/Year
Yes
Yes
CRL
CRL
$9,737,000
$1,100,000
$0
$0
$0
$0
5/26/2009
Various payees pursuant to
Lakeview LMV II Loan Agreement10/12/2010 10/12/2010
Various payees pursuant to
regulatory agreement Lakeview
Village
MFHRB
$5,000,0005
6 Low-Mod Housing 11/01/1999
12/01/1995
2009/10
$6,000/Year
$5,000/Year
$3,000/Year
Yes
No
MFHRB; CRL
CRL
Dav A North Lake $0 $0
$0
$0
11/01/1999
N/A
Various payees to administer
housing fund loanN/A
N/A
N/A
N/A
TBD
TBD
TBD
TBD
Various payees to administer
SERAF loan7 No CRL N/A
8 9
10 11
12 13
14 15
16 17
18 19
20 a/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed- income housing with commercial space.
b/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.

Exhibit D - Loans/Grants Receivables
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Are there
contractual
requirements
specifying the
purposes for which
the funds may be
used?
Was the Low-Mod
Housing Fund
amount issued for a
loan or a grant?
Person or entity to whom
the loan or grant was
issued
Purpose for which
the funds were
loaned or granted
Repayment date, if
the funds are for a
loan
Current
outstanding loan
balance
Amount of the loan Date the loan or
grant was issued
Interest rate
of loanItem # or grant
Pottery Court Housing
Associates, L.P.1
2 Loan $
$
9,737,000.00 05/26/2009
10/12/2010
Affordable Housing
Affordable Housing
Yes
Yes
Year 2067
Year 2067

3.00%

3.00%
$
$
9,737,000.00
243,425.50Loan Interest
3 4
Loan
Loan Interest
1,100,000.00
1,000,000.00
LMV II Affordable, L.P. $
$
1,100,000.00
26,583.00
Pottery Court Housing
Associates, L.P.5
6 Loan
Loan Interest
$ 05/26/2009
12/01/1995
Affordable Housing Yes
Yes
Year 2067
Various

3.00% $
$
1,000,000.00
47,500.00
RDA Projects;
Repayment of Debt7
8 Loan
Loan Interest
$
$
18,040,439.74 (1)
16,504,559.79 (1)
RDA Project Areas 1,2, 3 Various $ 18,040,439.74 (1)
$ 16,504,559.79 (1)
9 10
11 12
13 14
15 16
17 18
Notes:
(1). As of February 1, 2012.

Exhibit E - Rents/Operations
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Item # from
Exhibit A the
rent/operation
is associated
with (if
Entity to which Is the property
encumbered
by a low-mod
housing
the collected
payments are
ultimately
Purpose for
Type of property with
which they payments
are associated b/
Entity that
collects the
payments
which the
payments are
used
Source of low-
mod housing
covenant c/Item # Type of payment a/ Property owner remitted covenant? applicable) Pottery Court
Housing Associates,
L.P.

LMV II Affordable,
L.P.

Low-Mod
Housing
Low-Mod
Housing
Low-Mod
Housing
1 2
Residual Receipt Payment
Loan Repayment
Low-Mod Housing
Low-Mod Housing
Low-Mod Housing
Housing Agency
Housing Agency
Housing Agency
Housing Agency
Housing Agency
Housing Agency
Yes
Yes
No
CRL
CRL
CRL
8,9
10,11,12
3 4
Loan Repayment TBD Exhibit D: 7,8
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
a/ May include revenues from rents, operation of properties, residual receipt payments from developers, conditional grant repayments, costs savings and proceeds from refinancing, and principal and interest payments from homebuyers subject to enforceable income limits.
b/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space.
c/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.

Exhibit F - Rents
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Entity to which
the collected
payments are
ultimately
Is the property Item # from
Exhibit A the rent
is associated
with (if
Type of property
with which the
payments are
associated b/
Purpose for
which the
payments are
used
encumbered
by a low-mod
housing
Entity that
collects the
payments
Source of low-
mod housing
covenant c/
Property
ownerItem #
1 Type of payment a/ remitted covenant? applicable)
N/A
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 a/ May include rents or home loan payments.
b/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. c/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.

Exhibit G - Deferrals
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Interest rate
Fiscal year in
which funds
were deferred
at which
funds were
to be repaid
Date upon which
funds were to be
repaid
Purpose for which
funds were deferred
Current amount
owedItem # Amount deferred
H&S Sec. 33690
(SERAF)1 FY 2009/2010 $ 3,750,000.00 N/A $ 3,750,000.00 FY 2014/2015 2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT

REQUIREMENTS
Health and Safety Code Section 34176.1(f)
Housing Asset
Fund
Total amount deposited in the Housing Asset Fund for the fiscal year.

Revenues & Amount of deposits funded by a Recognized Obligation Payment Schedule Expenditures (“ROPS”).

Statement of balance at the close of the fiscal year.

Description of Expenditures for the fiscal year, broken out as follows:
•
•
•
Homeless prevention and rapid rehousing
Administrative and monitoring
Housing development expenses by income level assisted
Description of any transfers to another housing successor for a joint project.

Other Assets and Description of any project(s) funded through the ROPS.

Active Projects
Update on property disposition efforts (note that housing successors may only hold property for up to five years, unless it is already developed with affordable housing).

Other “portfolio” balances, including:
• Statutory value of any real property either transferred from the former Agency or purchased by the Housing Asset Fund
Value of loans and grants receivable•
Inventory of homeownership units assisted by the former Agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former Agency’s investment of monies from the Low- and Moderate-Income Housing Fund.

Obligations &
Proportionality
Description of any outstanding production obligations of the former Agency that were inherited by the Housing Successor.

Compliance with proportionality requirements (income group targets), which must be upheld on a five-year cycle.

Percentage of deed-restricted rental housing restricted to seniors and assisted by the former Agency, the Housing Successor, or the City within the past ten years compared to the total number of units assisted by any of those three agencies.

Amount of any excess surplus, and, if any, the plan for eliminating it.

Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 21 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE

REQUIREMENTS
Health and Safety Code Section 34176.1
Expense Category Limits Allowable Uses
Administrative activities such as:Administration (Limit varies and Compliance each year)
Monitoring
• Professional services (consultant fees, auditor fees, etc.) Staff salaries, benefits, and overhead for time spent on Housing Successor administration
•
Annual Limit •
•
Compliance monitoring to ensure compliance with
affordable housing and loan agreements
Property maintenance at Housing Successor-owned
properties
Capped at $200,000 and adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater.

Homeless
Prevention and
Rapid Rehousing fiscal year
Solutions
$250,000
maximum per
•
•
•
Services for individuals and families who are homeless or would be homeless but for this assistance, including:

Contributions toward the construction of local or regional homeless shelters
Housing relocation and stabilization services including housing search, mediation, or outreach to property owners Short-term or medium-term rental assistance
Security or utility deposits
Utility payments
Moving cost assistance
Credit repair
Case management
Annual Limit
•
•
•
•
•
•
• Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become
homeless.

Affordable
Housing
Development
No spending
limit, but must
comply with
income and
age targets
“Development” includes:
•
•
•
•
New construction
Acquisition and rehabilitation
Substantial rehabilitation
Acquisition of long-term affordability covenants on
multifamily units
• Preservation of at-risk units whose affordable rent
restrictions would otherwise expire over the next five years Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 22 Health and Safety Code Section 34176.1
Allowable UsesExpense Category Limits
Income Every five years, Housing Asset Funds must meet income targets:Targets
• At least 30% on extremely low-income rental households (up to 30% AMI or “Area Median Income”)
No more than 20% on low-income households (60-80%
AMI)
Fixed Five-Year
Compliance
Period
•
(First Period:

FY 2013-14 to
2018-19
Moderate and above moderate-income households may not be assisted (above 80% AMI).

Failure to comply with the extremely low-income requirement in Second Period: any five-year compliance period will result in having to ensure FY 2019-20 to
FY 2023-24)
that 50 percent of remaining funds be spent on extremely low- income rental units until in compliance.

Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income
categories until in compliance.

Age Targets For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors.

If a housing successor fails to comply, Housing Asset Funds may not be spent on deed-restricted rental housing restricted to seniors until in compliance.

Rolling Ten-
Year Period
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 23 18)
July 4th Fireworks Celebration on the Lake
Approve the recommended traffic detour map as approved by the City Engineer for the Annual Fireworks Show on Lake Elsinore.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Johnathan Oliver Skinner, Director Of Community Services Date:June 10, 2025
Subject:July 4th Fireworks Celebration on the Lake
Recommendation
Approve the recommended traffic detour map as approved by the City Engineer for the Annual Fireworks Show on Lake Elsinore.

Background
For years, the City held an Annual Fireworks Spectacular on Lake Elsinore, which included a “View by Boat” fireworks show over the lake. Pyro Spectaculars, Inc. located in Rialto, California provided services. Pyro Spectaculars also performs the same service for many surrounding communities including Diamond Stadium.

Each year, more and more attendees enjoy the production, and KOLA Radio 99.9 broadcast a radio simulcast for the Fireworks show, which lasted approximately 20 minutes. In addition to those, enjoying the show on the shore, limited boaters can experience the Fireworks on the Lake, sold only at Launch Pointe. As part of the festivities, a “Party in the Park” was held at Summerly Park, which included games, food, and a “Bike Parade” for the kids to decorate their bikes and ride on the sidewalks, around the sports fields.

Due to the popularity of the downtown area as a viewing location for the firework show a traffic detour plan was implemented several years ago in an effort to expedite the egress of the thousands of visitors. The detour plan has proven successful and is being recommended to be implemented for the 2025 show by public safety.
4th of July Detour Plan

Page 2 of 2 ends

Discussion
The Sherriff’s Department, Fire Department, Public Works Department and Community Services Department will coordinate resources to ensure the festivities of the Fireworks Show is a fun and safe event. As the program has expanded year after year, in order to ensure the safety of the participants, staff is recommending the street closures identified in Attachment 1 that will be enforced with a combination of City Public Works staff and Law Enforcement.

Fiscal Impact
The Fireworks Show and related public safety and personnel costs are budgeted in the Fiscal Year 2025-2026 budget.

Attachments
Attachment 1- Detour Route (July 4th)
Community Services
LEGEND
Detour Route
Road Closure

TRAFFIC FLOW
From Lakepoint Park
• Exit Right Only on Lakeshore Dr towards Diamond Dr
From Elm Grove Beach, Swick & Matich Park
• Exit towards Poe St
• Turn Right on Limited St
• Turn Left on Main St towards freeway
From Graham Avenue
• Turn Left on Spring St towards Collier Ave & Central Ave Westbound Lakeshore Dr
traffic take Avenue 6
detour towards Main St
Friday, July 4th Post-Firework Exit Detour Plan
From 8:45PM until 10:30PM

19)
2025 Annual Consumer Price Index Increase for Refuse Collection Services Provided by CR&R
Receive and file the 2025 Annual Consumer Price Index Increase for Refuse Collection Services provided by CR&R since the rate increase falls within the allowable amount per the Franchise Agreement.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Remon Habib, City Engineer
Date:June 10, 2025
Subject:2025 Annual Consumer Price Index Increase for Refuse Collection Services Provided by CR&R
Recommendation
Receive and file the 2025 Annual Consumer Price Index Increase for Refuse Collection Services provided by CR&R since the rate increase falls within the allowable amount per the Franchise Agreement.

Background
CR&R, Incorporated holds an exclusive franchise in the City of Lake Elsinore to collect and dispose of refuse and to collect and process recyclables in the city. The franchise contract specifies that rates be adjusted annually to reflect changes in the Consumer Price Index (CPI) and any increases in the Riverside County Landfill Fees. The current monthly residential rate is $32.18, which includes the Landfill Fee of $3.78.

Discussion
The CR&R requested increase in service rates is based on the data supplied by the Bureau of Labor Statistics for the 12 months ending March 31, 2025, in which the Consumer Price Index (CPI) for the Los Angeles, Riverside and Orange County area increased by 2.25%.

In addition, City staff was notified that the County of Riverside Waste Management Department will be adjusting their landfill disposal rate for Fiscal Year 2025-2026 by 2.88%.

Due to the increased CPI adjustment factor, a monthly rate adjustment will become effective for residential and commercial accounts. The monthly residential rate will go from $32.18 per month to $32.86 per month. The commercial rates for fiscal year 2025-2026 reflect the bundled services and the 1.87% increase adjustment; for the implementation of CalRecycle SB 1383 Mandatory Annual Consumer Price Index Increase for Refuse Collection

Page 2 of 2 ends

Commercial Compliance Rates. The new rates are reflected in Exhibit “C” and will become effective July 01, 2025.

Fiscal Impact
No negative fiscal impact to the City. This rate adjustment will result in a slight increase in franchise revenues for the City.

Attachments
Attachment 1- 2025 Price Adjustment
Exhibit A- 2025 Schedule of Rates
Engineering

20)
Fiscal Year 2025-26 SB-1 Lakeshore Drive and Mission Trail Pavement Resurfacing Project
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-2026 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Remon Habib, City Engineer
Date:June 10, 2025
Subject:Fiscal Year 2025-26 SB-1 Lakeshore Drive and Mission Trail Pavement Resurfacing Project
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-2026 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017.

Background
The new resolution will be uploaded to the “CALSMART” web tool to obtain project approval for SB-1 funding for Fiscal Year 2025-26.

Bucknam Infrastructure Group performed a Pavement Assessment in 2022, based on their pavement condition survey (2/2022), the Lakeshore Drive and Mission Trail project pavement condition indexes were rated on a scale from 0 to 100, depicting the condition of the existing pavement. Resurfacing recommendations are divided into the following categories based on the pavement condition:
•2” Grind and Overlay
•3” Grind and Overlay
SB-1 Lakeshore Dr and Mission Trail FY25/26

Page 2 of 2 ends

Discussion
The Lakeshore Drive and Mission Trail Pavement Resurfacing Project will include 2” grind and overlay and 3” grind and overlay. The following areas for the project are as follows:

Street Name From To Treatment
1 Lakeshore Drive Main St. Diamond Drive 2" AC Overlay
2 Mission Trail Diamond Dr. Malaga Rd. 2" AC Overlay
3 Malaga Rd. Mission Trail CDS 3" AC Overlay
4 Pete Lehr Dr. Diamond Dr. CDS 2" AC Overlay
5 Diamond Cir. Malaga Rd. Pete Lehr Dr. 2" AC Overlay
6 Campbell St. Mission Trail Diamond Dr. 3" AC Overlay
The estimated cost for the Lakeshore Drive and Mission Trail Pavement Resurfacing Project is $2,028,000.00. Once SB-1 funding is secured, projects from the list above will be advertised for bid. The City of Lake Elsinore’s projected SB-1 allocation for FY 2025-2026 is $1,935,163.00.

Fiscal Impact
The funding allocation for the Fiscal Year 2025-26 Lakeshore Drive and Mission Trail Pavement Resurfacing Project will be from the allocated SB-1 funds available with the remainder being funded from Measure A funds.

Attachments
Attachment 1 - Resolution
Attachment 2 - Project Map
Engineering
RESOLUTION NO 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025- 2026 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
Whereas, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
Whereas, SB 1 includes accountability and transparency provisions that will ensure the residents of our City of Lake Elsinore are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and Whereas, the City of Lake Elsinore must adopt a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1 by resolution, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and Whereas, the City of Lake Elsinore, will receive and estimated $1,935,163 in RMRA funding in Fiscal Year 2025-2026 from SB 1; and
Whereas, this is the ninth year in which the City of Lake Elsinore is receiving SB 1 funding and will enable the City of Lake Elsinore to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
Whereas, the City of Lake Elsinore has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and Whereas, the City of Lake Elsinore used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and Whereas, the funding from SB 1 will help the City of Lake Elsinore maintain and rehabilitate 6 streets/roads, and add active transportation infrastructure throughout the City of Lake Elsinore this year and hundreds of similar projects into the future; and Whereas, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and
CC Reso. No. 2025-

Page 2 of 3 ends

3 8
8 9
1 Whereas, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The foregoing recitals are true and correct.

Section 2. The Fiscal Year 2025-26 list of projects planned to be funded with Road Maintenance and Rehabilitation Account revenues include:

The Lakeshore Drive and Mission Trail Pavement Rehabilitation Project will consist of, 2 inch of grind and overlay and 3 inch grind and overlay, depending on the existing condition of pavement.

The project is located in the east area of the City of Lake Elsinore, in Riverside County, California.

The useful life of the project is expected to be around 10 to 12 years with design to start in July 2025 and be completed in September 2025 and construction to start in February 2026 and be completed in May 2026.

Street Name From To Treatment
1 Lakeshore Drive Main St. Diamond Drive 2" AC Overlay
2 Mission Trail Diamond Dr. Malaga Rd. 2" AC Overlay
3 Malaga Rd. Mission Trail CDS 3" AC Overlay
4 Pete Lehr Dr. Diamond Dr. CDS 2" AC Overlay
5 Diamond Cir. Malaga Rd. Pete Lehr Dr. 2" AC Overlay
6 Campbell St. Mission Trail Diamond Dr. 3" AC Overlay
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 10th day of June 2025.

Brian Tisdale
Mayor
Attest:

Candice Alvarez, MMC
City Clerk
CC Reso. No. 2025-

Page 3 of 3 ends

3 8
8 9
1 STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )

I, Candice Alvarez, MMC City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. ______ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of _________, and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

LAKESHORE DRIVE AND MISSION

TRAIL RESURFACING PROJECT
FY 25-26
2" GRIND AND OVERLAY
3" GRIND AND OVERLAY
3" GRIND AND 2" OVERLAY
21)
Amendment No. 2 to the Agreement with Prudential Overall Supply for Weekly Employee Uniforms, Shop Towels, and Logo Mat Services
Approve and authorize the City Manager to execute Amendment No. 2 to the Agreement with Prudential Overall Supply to increase compensation by an additional $4,000.00 for a total contract amount not to exceed $27,784.00 for weekly employee uniforms, shop towels, and logo mat services in such final form approved by the City Attorney.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Rick De Santiago, Public Works Manager
Date:June 10, 2025
Subject:Amendment No. 2 to the Agreement with Prudential Overall Supply for Weekly Employee Uniforms, Shop Towels, and Logo Mat Services Recommendation
Approve and authorize the City Manager to execute Amendment No. 2 to the Agreement with Prudential Overall Supply to increase compensation by an additional $4,000.00 for a total contract amount not to exceed $27,784.00 for weekly employee uniforms, shop towels, and logo mat services in such final form approved by the City Attorney.

Background
Prudential Overall Supply has been providing uniform rental services, ensuring that our employees have clean and presentable uniforms and customized polos with embroidery. The shop towels provided by Prudential Overall Supply are used for various purposes, including cleaning machinery, wiping surfaces, and maintaining a safe and sanitary working environment.

The entry floor mats help trap dirt, debris, and moisture, preventing them from being tracked inside and reducing the risk of slips and falls.

Discussion
Amendment No. 2 is requested for additional compensation to cover the expenses associated with these services. The average weekly invoices amount to approximately $475.00, and additional funding is necessary to cover unanticipated expenses for the remainder of the fiscal year.

Fiscal Impact
Funds are available in the City’s Fiscal Year 2024-25 Annual Operating Budget.

Amendment No. 2 with Prudential Overall Supply

Page 2 of 2 ends

Attachments
Attachment 1 - Amendment No. 2
Exhibit A - Invoices
Attachment 2 - Amendment No. 1
Attachment 3 - Original Agreement
Public Works
AMENDMENT NO. 2

TO AGREEMENT FOR CONTRACTOR SERVICES
Prudential Overall Supply
Employee Uniforms, Shop Towels and Logo Mat Services
This Amendment No. 2 to Agreement for Contractor Services is made and entered into as of 6/10/2025, by and between the City of Lake Elsinore, a municipal corporation (“City), and Prudential Overall Supply, a Corporation (“Contractor”).

RECITALS
A. The City and Contractor have entered into that certain Agreement for Contractor Services dated as of 7/11/2023, (the “Original Agreement”). Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

B. The Original Agreement provided for compensation to Contractor in an amount of Twenty-One Thousand dollars ($21,000.00).

C. The Original Agreement had a term commencing on July 1, 2023, and ending June 30, 2025, not to exceed 2 additional 12-month renewal terms.

D. Amendment No. 1 was approved on July 23, 2024, to increase compensation in an amount not to exceed Twenty-Three Thousand Seven Hundred Eighty-Four ($23,784.00).

E. The parties now desire to amend and increase the payment for such services as set forth in this Amendment No. 2 for an annual amount not to exceed Twenty-Seven Thousand Seven Hundred Eighty-Four ($27,784.00).

NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, City and Contractor agree as follows:

1. Section 3, Compensation, of the Original Agreement is hereby amended to read in its entirety as follows:

Notwithstanding the foregoing, for purposes of Amendment No. 2 and the term thereof, compensation to be paid to Contractor shall be in accordance with the Schedule of Charges set forth in Contractor ’s Proposal (referenced collectively as Exhibit A-1 Amendment No. 2). In no event shall Contractor ’s compensation related to Exhibit A-1 to Amendment No. 2 exceed Twenty-Seven Thousand Seven Hundred Eighty-Four dollars ($27,784.00) without additional written authorization from the City Council.

2. Except for the changes specifically set forth herein, all other terms and conditions of the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have caused this Amendment No. 2 to be executed on the respective dates set forth below.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
“CONTRACTOR”
Prudential Overall Supply, a Corporation
City Manager
Date:

JP Landin, Sales & Service Manager
Date: __
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney

Assistant City Manager
Attachments: Exhibit A-1 – Contractor ’s Proposal
EXHIBIT A-1
CONTRACTOR ’S PROPOSAL
[ATTACHED]

AMENDMENT NO. 1

TO AGREEMENT FOR CONTRACTOR SERVICES
Prudential Overall Supply
Employee Uniforms, Shop Towels and Logo Mat Services
This Amendment No. 1 to Agreement for Contractor Services is made and entered into as of 7/23/2024, by and between the City of Lake Elsinore, a municipal corporation (“City), and Prudential Overall Supply, a Corporation (“Contractor”).

B. The Original Agreement provided for compensation to Contractor in an amount of Twenty-One Thousand dollars ($21,000).

C. The Original Agreement had a term of commencing on July 1, 2023, and ending June 30, 2025. The City may, at its discretion, extend the term of this Agreement on a 12-month basis not to exceed 2 additional twelve (12) month renewal terms.

D. The parties now desire to amend and increase the payment for such services as set forth in this Amendment No. 1 for an annual amount not to exceed ($23,784).

NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, City and Contractor agree as follows:

1. Section 3, Compensation, of the Original Agreement is hereby amended to read in its entirety as follows:

Compensation to be paid to Contractor shall be in accordance with the fees set forth in Contractor ’s Proposal (Exhibit A-1), which is attached hereto and incorporated herein by reference. In no event shall Contractor ’s annual compensation exceed Twenty-Three Thousand Seven Hundred Eighty-Four ($23,784.00) without additional written authorization from the City Council.

2. Except for the changes specifically set forth herein, all other terms and conditions of the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to be executed on the respective dates set forth below.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
“CONTRACTOR”
Prudential Overall Supply, a corporation
Docusign Envelope ID: 3DF18E70-EB6C-4ACB-ABED-F3983EABA259 City Manager
Date:

JP Landin
Date: __
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney

Assistant City Manager
Attachments: Exhibit A-1 – Contractor ’s Proposal
Docusign Envelope ID: 3DF18E70-EB6C-4ACB-ABED-F3983EABA259 7/27/2024 | 9:26 PM PDT
7/27/2024 | 11:03 PM PDT

EXHIBIT A-1
CONTRACTOR ’S PROPOSAL
[ATTACHED]
Docusign Envelope ID: 3DF18E70-EB6C-4ACB-ABED-F3983EABA259

INVOICE

Page 1 of 4 ends

RUBEN MORENO
6997 Jurupa Ave., Riverside, Ca 92504
23670777Invoice Number:
07/04/2024Invoice Date:

Customer Sales Rep:

Telephone Fax951-687-0440 951-354-8110
Plant's Location:

Remit Payment: PO BOX 11210, Santa Ana, CA 92711-1210
Deliver To: # Bill To: #40237407 3517225Charge

LAKE ELSINORE PUBLIC WORKS
521 NORTH LANGSTAFF
LAKE ELSINORE, CA 92530

LAKE ELSINORE PUBLIC WORKS
521 NORTH LANGSTAFF
LAKE ELSINORE, CA 92530
ATTENTION: ACCOUNTS PAYABLE
Unit
Charge
Wearer
Description
Mdse. Product Description Service Bill
Qty
Amount
69034 MAT 3X4 BLACK Rent 16.81 2.801
29034 MAT 3X4 BLACK MMP 1.17 0.584
2009792 18X18 PURPLE SHOP TOWEL Rent 14.80 0.074
49792 18X18 PURPLE SHOP TOWEL MMP 1.70 0.424
49985 22X44 WHITE BATH TOWEL Rent 1.32 0.329
19985 22X44 WHITE BATH TOWEL MMP 2.12 2.122
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26102 0.478GUSTAVO DELAT 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11753311 DENIM COTTON WESTERN PANT Rent 5.49104 0.499RAMIRO DELGAD 778442799 MENS GREY MIMIX WORK SHIRT Rent 2.90 0.414
478442799 MENS GREY MIMIX WORK SHIRT Rent 1.66 0.414
11734416 CHARCOAL WORK PANT Rent 2.33106 0.212OSCAR VASQUE 11777508PA POLO SHIRT-100% POLYTRI BLACK Rent 4.09 0.372 11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26108 0.478ALFONSO MONT 578442799 MENS GREY MIMIX WORK SHIRT Rent 2.07 0.414
678442799 MENS GREY MIMIX WORK SHIRT Rent 2.48 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26109 0.478ALEX CANAS 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11753311 DENIM COTTON WESTERN PANT Rent 5.49110 0.499HECTOR GONZA 5777508PA POLO SHIRT-100% POLYTRI BLACK Rent 1.86 0.372 11777508PA POLO SHIRT-100% POLYTRI BLACK Rent 4.09 0.372 11753311 DENIM COTTON WESTERN PANT Rent 5.49111 0.499MATT REED 11777508PA POLO SHIRT-100% POLYTRI BLACK Rent 4.09 0.372 11753311 DENIM COTTON WESTERN PANT Rent 5.49112 0.499LUIS CEJA 5777508PA POLO SHIRT-100% POLYTRI BLACK Rent 1.86 0.372 11777508PA POLO SHIRT-100% POLYTRI BLACK Rent 4.09 0.372 11734416 CHARCOAL WORK PANT Rent 2.33113 0.212DANIEL SAAVED 11753311 DENIM COTTON WESTERN PANT Rent 5.49 0.499
7777508PA POLO SHIRT-100% POLYTRI BLACK Rent 2.60 0.372 11777508PA POLO SHIRT-100% POLYTRI BLACK Rent 4.09 0.372 11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26114 0.478WILL YANG 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11734416 CHARCOAL WORK PANT Rent 2.33117 0.212CHRIS ERICKSO 11777508PA POLO SHIRT-100% POLYTRI BLACK Rent 4.09 0.372 11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26118 0.478JUSTIN THOMPS This invoice is in accordance with your Service Rental Agreement. Please forward to your Accounts Payable Department.

Payment Terms 30 days from invoice date or upon receipt of monthly statement. Thank you for the opportunity to serve ! Docusign Envelope ID: 3DF18E70-EB6C-4ACB-ABED-F3983EABA259

INVOICE

Page 2 of 4 ends

RUBEN MORENO
6997 Jurupa Ave., Riverside, Ca 92504
23670777Invoice Number:
07/04/2024Invoice Date:

Customer Sales Rep:

Telephone Fax951-687-0440 951-354-8110
Plant's Location:

Remit Payment: PO BOX 11210, Santa Ana, CA 92711-1210
Deliver To: # Bill To: #40237407 3517225Charge

LAKE ELSINORE PUBLIC WORKS
521 NORTH LANGSTAFF
LAKE ELSINORE, CA 92530

LAKE ELSINORE PUBLIC WORKS
521 NORTH LANGSTAFF
LAKE ELSINORE, CA 92530
ATTENTION: ACCOUNTS PAYABLE
Unit
Charge
Wearer
Description
Mdse. Product Description Service Bill
Qty
Amount
1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55118 0.414JUSTIN THOMPS 5777508PA POLO SHIRT-100% POLYTRI BLACK Rent 1.86120 0.372JOSE FONSECA 11777508PA POLO SHIRT-100% POLYTRI BLACK Rent 4.09 0.372 11753311 DENIM COTTON WESTERN PANT Rent 5.49123 0.499DAVID CHAVEZ 878442799 MENS GREY MIMIX WORK SHIRT Rent 3.31 0.414
378442799 MENS GREY MIMIX WORK SHIRT Rent 1.24 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26124 0.478KYLE BELL 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26125 0.478LANDEN FINLEN 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26127 0.478TUA MASOLI 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
9733816 MEN'S CHARCOAL MIMIX PANT Rent 4.30128 0.478RICARDO GAMB 578442799 MENS GREY MIMIX WORK SHIRT Rent 2.07 0.414
678442799 MENS GREY MIMIX WORK SHIRT Rent 2.48 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26129 0.478CHRISTIAN KERR 173441699 CHARCOAL MENS SHORT Rent 0.21 0.212
1078442799 MENS GREY MIMIX WORK SHIRT Rent 4.14 0.414
178442799 MENS GREY MIMIX WORK SHIRT Rent 0.41 0.414
1784227 LT GRAY WORK SHIRT Rent 0.19130 0.191SIZING KIT 1784227 LT GRAY WORK SHIRT Rent 0.19 0.191
1784227 LT GRAY WORK SHIRT Rent 0.19 0.191
1784227 LT GRAY WORK SHIRT Rent 0.19 0.191
1784227 LT GRAY WORK SHIRT Rent 0.19 0.191
1784227 LT GRAY WORK SHIRT Rent 0.19 0.191
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26132 0.478PABLO RUBIO 578442799 MENS GREY MIMIX WORK SHIRT Rent 2.07 0.414
678442799 MENS GREY MIMIX WORK SHIRT Rent 2.48 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26134 0.478JOEL DE LEON 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26135 0.478LUIS RENTERIA 678442799 MENS GREY MIMIX WORK SHIRT Rent 2.48 0.414
578442799 MENS GREY MIMIX WORK SHIRT Rent 2.07 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26138 0.478MIGUEL VALDIVI 678442799 MENS GREY MIMIX WORK SHIRT Rent 2.48 0.414
This invoice is in accordance with your Service Rental Agreement. Please forward to your Accounts Payable Department.

Payment Terms 30 days from invoice date or upon receipt of monthly statement. Thank you for the opportunity to serve ! Docusign Envelope ID: 3DF18E70-EB6C-4ACB-ABED-F3983EABA259

INVOICE

Page 3 of 4 ends

RUBEN MORENO
6997 Jurupa Ave., Riverside, Ca 92504
23670777Invoice Number:
07/04/2024Invoice Date:

Customer Sales Rep:

Telephone Fax951-687-0440 951-354-8110
Plant's Location:

Remit Payment: PO BOX 11210, Santa Ana, CA 92711-1210
Deliver To: # Bill To: #40237407 3517225Charge

LAKE ELSINORE PUBLIC WORKS
521 NORTH LANGSTAFF
LAKE ELSINORE, CA 92530

LAKE ELSINORE PUBLIC WORKS
521 NORTH LANGSTAFF
LAKE ELSINORE, CA 92530
ATTENTION: ACCOUNTS PAYABLE
Unit
Charge
Wearer
Description
Mdse. Product Description Service Bill
Qty
Amount
578442799 MENS GREY MIMIX WORK SHIRT Rent 2.07138 0.414MIGUEL VALDIVI 11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26139 0.478ANGEL ACEVED 678442799 MENS GREY MIMIX WORK SHIRT Rent 2.48 0.414
578442799 MENS GREY MIMIX WORK SHIRT Rent 2.07 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26141 0.478CHRISTINA ALVA 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26143 0.478EDDIE HERRERA 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26144 0.478JOSEPH SELVAG 678442799 MENS GREY MIMIX WORK SHIRT Rent 2.48 0.414
578442799 MENS GREY MIMIX WORK SHIRT Rent 2.07 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26147 0.478DANE GRIPPO 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26148 0.478JULIAN PARRA 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
378442799 MENS GREY MIMIX WORK SHIRT Rent 1.24 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26149 0.478CHRIS LOPEZ 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26150 0.478JEREMY MEDWI 578442799 MENS GREY MIMIX WORK SHIRT Rent 2.07 0.414
678442799 MENS GREY MIMIX WORK SHIRT Rent 2.48 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26151 0.478KOBE CELIS 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26152 0.478HOUSTON OMAL 1178442799 MENS GREY MIMIX WORK SHIRT Rent 4.55 0.414
11733816 MEN'S CHARCOAL MIMIX PANT Rent 5.26153 0.478NEHEMIAH DAVI 578442799 MENS GREY MIMIX WORK SHIRT Rent 2.07 0.414
678442799 MENS GREY MIMIX WORK SHIRT Rent 2.48 0.414
- Budget Protection Program Protection Cov. 0.106 82.47778 9921BB AUTOMATIC SOAP DISPENSER BLACK Sales 0.0063.654
9937ALC ALCO-FOAM SANITIZER 900ML CASE Sales 0.0090.527 Delivery Charge 10.61
This invoice is in accordance with your Service Rental Agreement. Please forward to your Accounts Payable Department.

Payment Terms 30 days from invoice date or upon receipt of monthly statement. Thank you for the opportunity to serve ! Docusign Envelope ID: 3DF18E70-EB6C-4ACB-ABED-F3983EABA259

INVOICE

Page 4 of 4 ends

RUBEN MORENO
6997 Jurupa Ave., Riverside, Ca 92504
23670777Invoice Number:
07/04/2024Invoice Date:

Customer Sales Rep:

Telephone Fax951-687-0440 951-354-8110
Plant's Location:

Remit Payment: PO BOX 11210, Santa Ana, CA 92711-1210
Deliver To: # Bill To: #40237407 3517225Charge

LAKE ELSINORE PUBLIC WORKS
521 NORTH LANGSTAFF
LAKE ELSINORE, CA 92530

Initials:

Signature Time:

RM
07/03/2024
04:49:33 PM
NOTE: Effective June 2024, we will no longer mail out monthly statements. Please contact your local plant to update your email address on file to receive a monthly statement electronically. Weekly invoice delivery will not be impacted.

This invoice is in accordance with your Service Rental Agreement. Please forward to your Accounts Payable Department.

Payment Terms 30 days from invoice date or upon receipt of monthly statement. Thank you for the opportunity to serve ! Docusign Envelope ID: 3DF18E70-EB6C-4ACB-ABED-F3983EABA259 ACORD® CERTIFICATE OF LIABILITY INSURANCE I

DATE (MM/DDIYYYY)
~ 06/1212024
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER . THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW . THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER($), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER .

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

PRODUCER CONTACT
Marsh Risk & Insurance Services NAME:

PHONE FAX
17901 Von Karman Avenue, Suite 1100 IAJC .,_ E•tl: IAJC Nol:
(949) 399-5800; License #0437153 E-MAIL
ADDRESS : Irvine, CA 92614
INSURER(Sl AFFORDING COVERAGE NAIC#
CN102713954-STND-GAWUW-24- INSURER A : Hartford Fire Insurance Comoanv 19682 INSURED INSURER B : N/A N/A Prudential Overall Supply
P 0. Box 11210 INSURER C : WA N/A
Santa Ana, CA 92711 INSURER D : ~afetv Nalinnal r,e "itv r.nm. 15105 INSURERE :

INSURER F :

COVERAGES CERTIFICATE NUMBER: LOS-002259770-45 REVISION NUMBER:

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR TYPE OF INSURANCE ADDLSUBR I POLICY EFF POLICY EXP LIMITS LTR 1,.,~n wvn 1 POLICY NUMBER IMM/DD/YYYYl IMM/DD/YYYYl A
~
MERCIAL GENERAL LIABILITY 72CCSOF9345 I 03101,2024 I 0310112025 EACH OCCURRENCE s 1,000,000 CLAIMS-MADE 0 OCCUR
0 A MA<.,C: TO HENTEO
PREMISES (Ea occurrence) s 300,000
MED EXP (Any one person) s 10,000
I
PERSONAL & ADV INJURY $ 1,000,000
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 ~
□ PRO - □ LOG
I
PRODUCTS· COMP/OP AGG $ 2,000,000 POLICY JECT
OTHER: $
A AUTOMOBILE LIABILITY I ' 72CSES71000 (CA,AZ,CO,NV, 03/01 /2024 03/01 /2025 COMBINED SINGLE LIMIT s 3,000,000 (Ea accident) ~

ANY AUTO
I
NM, TX,MO,OR,NH, VA,WV,SC,GA) BODILY INJURY (Per person) 1 S OWNED
q
SCHEDULED BODILY INJURY (Per accident) s AUTOS ONLY AUTOS HIRED NON-OWNED 'Auto Phys. Dmg coverage applies I ip~~~~l~le~8AMAGE s .-- AUTOS ONLY .........j AUTOS ONLY I I to Scheduled and Hired Autos only' s
~
' UMBRELLA LIAB
H
OCCUR I EACH OCCURRENCE s
EXCESS LIAB CLAIMS-MADE AGGREGATE s
OED I I RETENTION $ s
WORKERS COMPENSATION I ~l\'tu TE I I OTH-

AND EMPLOYERS' LIABILITY ER
Y / N

ANYPROPRIETOR/PARTNER/EXECUTIVE
□
E.l. EACH ACCIDENT $
OFFICER/MEMBER EXCLUDED? N / A
(Mandatory in NH)
I I
E.l. DISEASE • EA EMPLOYEE! S
If yes, describe under
I I E.l. DISEASE· POLICY LIMIT s DESCRIPTION OF OPERATIONS below D Excess Workers' Compensation
I
SP4066704 I 0110112024 07/01 /2025 Limit 25,000,000
I Employers' Liability .. $750K SIR (AZ) I $1 M SIR (CA) .. Limit 1,000,000

I I I I I
DESCRIPTION OF OPERATIONS/ LOCATIONS/ VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

CERTIFICATE HOLDER CANCELLATION
City of Lake Elsinore SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE 130 S. Main Street THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Lake Elsinore, CA 92530 ACCORDANCE WITH THE POLICY PROVISIONS.

AUTHORIZED REPRESENTATIVE
I ~ ~~ & 1~ Setwia4
© 1988-2016 ACORD CORPORATION. All rights reserved .

ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD Docusign Envelope ID: 3DF18E70-EB6C-4ACB-ABED-F3983EABA259

CITY OF LAKE ELSINORE

TO BE POSTED IN A CONSPICUOUS PLACE
Business Name:

Business Location:

Owner Name(s):

BUSINESS LICENSE NO.

Issue Date: Expiration Date:

BUSINESS LICENSE
THIS IS YOUR LICENSE • NOT TRANSFERABLE
PO BOX 11210 Business Type:

SANTA ANA, CA 92711-1210

PRUDENTIAL OVERALL SUPPLY
PO BOX 11210
SANTA ANA, CA 92711-1210
This business license is issued for revenuepurposes only and does not grant authorization to operate a business. This business license is issued without verification that the holder is subject to or exempted from licensing by t he state, county, feder al government, or any other governmental agency.

Administrative Services - Licensing
130 South Main Street, Lake Elsinore, CA 92530
PH (951 ) 674-3124

PRUDENTIAL OVERALL SUPPLY

CHRIS WELCH

DAN CLARK

MOBILE SERVICE AND/OR DELIVERY

VEHICLES
000471
2/1/2024 1/31/2025
Starting January 1, 2021, Assembly Bill 1607 requires the prevention of gender-based discrimination of business establishments. A full notice is available in English or other languages by going to: https://www.dca.ca.gov/publications/ Docusign Envelope ID: 3DF18E70-EB6C-4ACB-ABED-F3983EABA259 Certificate Of Completion
Envelope Id: 3DF18E70EB6C4ACBABEDF3983EABA259
Status: Completed
Subject: Complete with Docusign: Amendment No. 1 - Prudential Overall Supply.pdf Source Envelope:

Document Pages: 9
Signatures: 5
Envelope Originator:

Certificate Pages: 5
Initials: 0
Carla Khalil
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
130 S. Main Street
Lake Elsinore, CA 92530
[email protected]
IP Address: 76.79.110.130
Record Tracking
Status: Original
7/24/2024 1:34:57 PM
Holder: Carla Khalil
[email protected]
Location: DocuSign
Signer Events
Signature
Timestamp
Shannon Buckley
[email protected]
Assistant City Manager
Security Level: Email, Account Authentication
(None)

Signature Adoption: Pre-selected Style
Using IP Address: 47.180.22.242
Sent: 7/24/2024 1:36:47 PM
Viewed: 7/24/2024 1:37:16 PM
Signed: 7/24/2024 1:37:36 PM
Electronic Record and Signature Disclosure:

Accepted: 7/24/2024 1:37:16 PM
ID: b5b90690-02ac-464f-a6a3-98dbd86252fa
Barbara Leibold
[email protected]
City Attorney
Security Level: Email, Account Authentication
(None)

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Attachment 1 - Agreement.pdfPage 1

AGREEMENT FOR CONTRACTOR SERVICES
Prudential Overall Supply
Employee Uniform and Shop Towel Services
This Agreement for Contractor Services (the “Agreement”) is made and entered into as of July 11, 2023, by and between the City of Lake Elsinore, a municipal corporation (‘‘City") and Prudential Overall Supply, a Corporation ("Contractor").

RECITALS
A. The City has determined that it requires the following Contractor services:

Employee Uniform Service and shop towel services.

B. Contractor has submitted to City a proposal, dated April 12, 2023, attached hereto as Exhibit A (“Contractor’s Proposal”) and incorporated herein, to provide contractor services to City pursuant to the terms of this Agreement.

C. Contractor possesses the skill, experience, ability, background, certification and knowledge to perform the services described in this Agreement on the terms and conditions described herein.

D. City desires to retain Contractor to perform the services as provided herein and Contractor desires to provide such contractor services as set forth in this Agreement.

AGREEMENT

1. Scope of Services. Contractor shall perform the services described in Contractor’s Proposal (Exhibit A). Contractor shall provide such services at the time, place, and in the manner specified in Contractor’s Proposal, subject to the direction of the City through its staff that it may provide from time to time.

2. Time of Performance.
a. Time of Essence. Time is of the essence in the performance of this Agreement. The time for completion of the contractor services to be performed by Contractor is an essential condition of this Agreement. Contractor shall prosecute regularly and diligently the contractor services contemplated pursuant to this Agreement according to the agreed upon performance schedule in Contractor’s Proposal (Exhibit A). b. Performance Schedule. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the Contractor’s Proposal (Exhibit A). When requested by Contractor, extensions to the time period(s) specified may be approved in writing by the City Manager.
c. Term and Compliance with Task/Work Order System. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall continue in full force DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

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and effect for a period commencing on July 1, 2023 and ending June 30, 2025. The City may, at its sole discretion, extend the term of this Agreement on a 12-month basis not to exceed 2 additional twelve (12) month renewal terms by giving written notice thereof to Contractor not less than thirty (30) days before the end of the contract term, such notice to be exercised by the City Manager.

Contractor hereby agrees and acknowledges that any and all work or services performed pursuant to this Agreement shall be based upon the issuance of a Task/Work Order by the City. Contractor acknowledges that it is not guaranteed any minimum or specific amount of work or services as all work or services shall be authorized through a Task/Work Order issued by the City.

3. Compensation. Compensation to be paid to Contractor shall be in accordance with the fees set forth in Contractor's Proposal (Exhibit A), which is attached hereto and incorporated herein by reference. In no event shall Contractor's annual compensation exceed Twenty-One Thousand Dollars and Zero Cents ($21,000.00) without additional written authorization from the City. Notwithstanding any provision of Contractor's Proposal to the contrary, out of pocket expenses set forth in Exhibit A shall be reimbursed at cost without an inflator or administrative charge. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment.

4. Method of Payment. Contractor shall promptly submit billings to the City describing the services and related work performed during the preceding month to the extent that such services and related work were performed. Contractor’s bills shall be segregated by project task, if applicable, such that the City receives a separate accounting for work done on each individual task for which Contractor provides services. Contractor’s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. City shall pay Contractor no later than forty-five (45) days after receipt of the monthly invoice by City staff.

5. Background Checks. At any time during the term of this Agreement, the City reserves the right to make an independent investigation into the background of Contractor’s personnel who perform work required by this Agreement, including but not limited to their references, character, address history, past employment, education, social security number validation, and criminal or police records, for the purpose of confirming that such personnel are lawfully employed, qualified to provide the subject service or pose a risk to the safety of persons or property in and around the vicinity of where the services will be rendered or City Hall. If the City makes a reasonable determination that any of Contractor’s prospective or then current personnel is deemed objectionable, then the City may notify Contractor of the same. Contractor shall not use that personnel to perform work required by this Agreement, and if necessary, shall replace him or her with a suitable worker.

DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

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b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Contractor the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Contractor will submit an invoice to the City, pursuant to Section entitled “Method of Payment” herein.

7. Plans, Studies, Documents.
a. Ownership of Documents. All plans, studies, documents and other writings prepared by and for Contractor, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notepad internal documents, shall become the property of the City upon payment to Contractor for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Contractor or to any other party. Contractor shall, at Contractor’s expense, provide such reports, plans, studies, documents and other writings to City upon written request. City shall have sole determination of the public’s rights to documents under the Public Records Act, and any third- party requests of Contractor shall be immediately referred to City, without any other actions by Contractor.
b. Licensing of Intellectual Property. This Agreement creates a nonexclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement ("Documents & Data"). Contractor shall require that all subcontractors agree in writing that City is granted a nonexclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Contractor or provided to Contractor by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. c. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor. Such materials shall not, without the prior written consent of City, be used by Contractor for any purposes other than the performance of the services under this Agreement. Nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Contractor which is otherwise known to Contractor or is generally known, or has become known, to the related industry shall be deemed confidential. Contractor shall not use City’s name or insignia, photographs relating to project for which Contractor’s services are rendered, or any publicity pertaining to the Contractor’s services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

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8. Contractor’s Books and Records.
a. 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 services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor to this Agreement.
b. Contractor shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Contractor’s address indicated for receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Contractor’s business, City may, by written request by any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained in City Hall. Access to such records and documents shall be granted to any party authorized by Contractor, Contractor’s representatives, or Contractor’s successor-in-interest.

9. Independent Contractor.
a. Contractor is and shall at all times remain as to the City a wholly independent contractor pursuant to California Labor Code Section 3353. The personnel performing the services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of Contractor’s officers, employees, or agents, except as set forth in this Agreement. Contractor shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner. b. Notwithstanding any other federal, state and local laws, codes, ordinances and regulations to the contrary and except for the fees paid to Contractor as provided in the Agreement, Contractor and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

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indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

11. Interests of Contractor. Contractor (including principals, associates and professional employees) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Contractor’s services hereunder. Contractor further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.

Contractor is not a designated employee within the meaning of the Political Reform Act because Contractor:
a. will conduct research and arrive at conclusions with respect to his/her rendition of information, advice, recommendation or counsel independent of the control and direction of the City or of any City official, other than normal agreement monitoring; and b. possesses no authority with respect to any City decision beyond rendition of information, advice, recommendation or counsel. (FPPC Reg. 18700(a)(2).)

12. Professional Ability of Contractor. City has relied upon the professional training and ability of Contractor to perform the services hereunder as a material inducement to enter into this Agreement. Contractor shall therefore provide properly skilled professional and technical personnel to perform all services under this Agreement. All work performed by Contractor under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Contractor’s field of expertise.

13. Compliance with Laws.
a. Contractor shall comply with all local, state and federal laws and regulations applicable to the services required hereunder, including any rule, regulation or bylaw governing the conduct or performance of Contractor and/or its employees, officers, or board members.
b. Contractor represents that it has obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

14. Licenses. Contractor represents and warrants to City that it has the licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Contractor to practice its profession. Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Contractor to practice its profession. Contractor shall maintain a City of Lake Elsinore business license.

DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

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15. Indemnity. Contractor shall indemnify, defend, and hold harmless the City and its officials, officers, employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Contractor or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Contractor shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises from the sole negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Contractor or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law. It is understood that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Contractor from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Contractor acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.

16. Insurance Requirements.
a. Insurance. Contractor, at Contractor’s own cost and expense, shall procure and maintain, for the duration of the contract, unless modified by the City’s Risk Manager, the following insurance policies.
i. Workers’ Compensation Coverage. Contractor shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation or non-renewal of all Workers’ Compensation policies must be received by the City at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. In the event that Contractor is exempt from Worker’s Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California, Contractor shall submit to the City a Certificate of Exemption from Workers Compensation Insurance in a form approved by the City Attorney.
ii. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Required commercial general liability coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed. 1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

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covering Broad Form Comprehensive General Liability. No endorsement may be attached limiting the coverage.
iii. Automobile Liability Coverage. Contractor shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence.

Automobile liability coverage must be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 1 (“any auto”). No endorsement may be attached limiting the coverage.
iv. Professional Liability Coverage. Contractor shall maintain professional errors and omissions liability insurance appropriate for Contractor’s profession for protection against claims alleging negligent acts, errors or omissions which may arise from Contractor’s services under this Agreement, whether such services are provided by the Contractor or by its employees, subcontractors, or sub Contractors. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single limit per occurrence basis. b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
i. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers’ Compensation, shall bear an endorsement whereby it is provided that, the City and its officers, employees, servants, volunteers and agents and independent contractors, including without limitation, the City Manager and City Attorney, are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages.
ii. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have, shall be considered excess insurance only and shall not contribute with it. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
iv. The insurer waives all rights of subrogation against the City, its elected or appointed officers, officials, employees or agents. v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.

DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

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vi. The insurance provided by this Policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the City’s option, Contractor shall demonstrate financial capability for payment of such deductibles or self-insured retentions. d. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein.

Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.

17. Notices. Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
With a copy to: City of Lake Elsinore
Attn: City Clerk
130 South Main Street
Lake Elsinore, CA 92530
If to Contractor:Prudential Overall Supply
Attn: JP Landin, Sales & Service Manager
6997 Jurupa Ave.

Riverside, Ca 92504

18. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Contractor and the subcontractors listed in Exhibit B. Contractor shall be fully responsible to City for all acts or omissions of any subcontractors. Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express consent of the City. Contractor shall not subcontract any portion of the work to be performed under this Agreement except as provided in Exhibit B without the written authorization of the City. If City consents to such subcontract, Contractor shall be fully responsible to City for all acts or omissions of those subcontractors. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law.

19. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

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20. Litigation Expenses and Attorneys’ Fees. If either party to this Agreement commences any legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys’ fees.

21. Mediation. The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree upon the mediator and share the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to JAMS or its successor in interest. JAMS shall provide the parties with the names of five qualified mediators. Each party shall have the option to strike two of the five mediators selected by JAMS and thereafter the mediator remaining shall hear the dispute. If the dispute remains unresolved after mediation, either party may commence litigation.

22. Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

23. Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

Contractor agrees to fully comply with all applicable federal and state labor laws (including, without limitation, if applicable, the Prevailing Wage Laws). It is agreed by the parties that, in connection with the Work or Services provided pursuant to this Agreement, Contractor shall bear all risks of payment or non-payment of prevailing wages under California law, and Contractor hereby agrees to defend, indemnify, and hold the City, and its officials, officers, employees, agents, and volunteers, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. The foregoing indemnity shall survive termination of this Agreement.

25. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.

DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

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26. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Riverside.

27. Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. The City Manager is authorized to enter into an amendment or otherwise take action on behalf of the City to make the following modifications to the Agreement: (a) a name change; (b) grant extensions of time; (c) non- monetary changes in the scope of services; and/or (d) suspend or terminate the Agreement.

28. Counterparts. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

29. Entire Agreement; Incorporation; Conflict. This Agreement contains the entire understanding between the parties relating to the obligations described herein. All prior or contemporaneous understandings, agreements, representations and statements, oral or written, are superseded in total by this Agreement and shall be of no further force or effect. Contractor’s Proposal is incorporated only for the description of the scope of services and/or the schedule of performance and no other terms and conditions from such proposal shall apply to this Agreement unless specifically agreed to in writing. In the event of conflict, this Agreement shall take precedence over those contained in the Contractor’s Proposal.

30. Amendments. This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney. [Signatures on next page]
DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
City Manager
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney
Assistant City Manager
“CONTRACTOR”
Prudential Overall Supply, a Corporation
By:JP Landin
Its:Sales and Serice Manager
Attachments: Exhibit A – Contractor’s Proposal
Exhibit B – List of Subcontractors
DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

EXHIBIT A

EXHIBIT A
CONTRACTOR’S PROPOSAL
[ATTACHED]
DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

EXHIBIT B

LIST OF SUBCONTRACTORS
[ATTACHED]
DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557 Addendum “A”
Price Structure
For

CITY OF LAKE ELSINORE PUBLIC WORKS

GARMENTS /FACILITY SERVICES

ITEM POS CODE UNIT PRICE REPLACEMENT VALUE
MIMIX SHIRTS 78-44-27-99 $ .402 $47.00
MIMIX PANTS 73-38-16 $ .464 $45.55
POLOS SHIRTS 77-75-08-PA $ .35 $29.00
DENIM JEANS 753311 $ .484 $43.00
BPP BPP $ .103 -
18X18 SHOP TOWELS 9792 $.072 $.40
18X18 INVENTORY MAINT (TTD) 9792-MMP $.412 $.40
3X4 APPERANCE MAT 9035 $2.71 $54.10
3X4 LOGO MAT 9231 $3.45 $157.12
4X6 LOGO MAT 9241 $7.25 $189.00
BATH TOWEL 22X44 WHITE COTTON 9985 $0.319 $2.01

BATH TOWEL MAINT (TTD) 9985-MMP $2.06 $2.00

• Additional Information: Annual cost addendum 2023/2024 • Weekly service $436.30
• Monthly service $1,745.20
• Yearly service $ 20,942.20

Prudential Overall Supply CITY OF LAKE ELSINORE PUBLIC WORKS

Signature:

Name:

JP Landin

Name:

Title:

SALES&SERVICE MANAGER

Title:

Date:

DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557 ACORDe CERTIFICATE OF LIABILITY INSURANCE

DA TE (MM/DD/YYYY)
..._ 06/14/2023
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

PRODUCER 1:;0NTACT
Marsh Risk & Insurance Services NAME:

PHONE I FAX 17901 Von Karman Avenue. Suite 1100 IAJC Nn i;wt\: (A/C. No):
(949) 399-5800; License #0437153 E-MAIL
ADDRESS: Irvine, CA 92614
INSURER(S) AFFORDING COVERAGE NAIC#
CN102713954-STND-GAWUW-22- INSURER A : Hartford Fire Insurance Company 19682 INSURED INSURER B : N/A NIA Prudential Overall Supply
P.O. Box 11210 INSURER C : N/A N/A
Santa Ana, CA 92711 INSURER D : Safety National Casualty Coro. 15105 INSURERE:

INSURERF:

COVERAGES CERTIFICATE NUMBER: LOS-002259770-38 REVISION NUMBER:

INSR TYPE OF INSURANCE ADDL SUBR POUCYEFF POLICY EXP LIMITS LTR IN~n WVD POLICY NUMBER (MII/Duir_1_T_T_T_I (M____ - ■■ uTTTTI
A X COMMERCIAL GENERAL LIABILITY 72CCSOF7553 03/01/2023 03/01/2024 EACH OCCURRENCE $ 1,000,000 I CLAIMS-MADE 0 OCCUR
DAMAul::. I U REN I 1::.0
PREMISES (Ea occurrence) $ 300,000
MED EXP (Any one person) $ 10,000
-
PERSONAL & ADV INJURY $ 1,000,000
-
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 X □ PRO-_ POLICY JECT DLoc PRODUCTS - COMP/OP AGG $ 2,000,000 OTHER: $
A AUTOMOBILE LIABILITY 72CSES71000 (CA,AZ,CO,NV, 03/01/2023 03/01/2024 COMBINED SINGLE LIMIT $ 3,000,000 {Ea accidentl - X ANY AUTO NM1TX,MO1OR1NH1VA1WV,SC1GA) BODILY INJURY (Per person) $ - -OWNED SCHEDULED BODILY INJURY (Per accident) $

AUTOS ONLY AUTOS
~
HIRED
,---
NON-OWNED 'Auto Phys. 0mg coverage applies PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY {Per accident)
-
,__
to Scheduled and Hired Autos only' $
UMBRELLA LIAB OCCUR EACH OCCURRENCE $
- -
EXCESSLIAB CLAIMS-MADE AGGREGATE $
DED I I RETENTION$ $

WORKERS COMPENSATION I PER I I OTH-STATUTE ER

AND EMPLOYERS' LIABILITY Y/N

ANYPROPRIETOR/PARTNER/EXECUTIVE
□
E.L. EACH ACCIDENT $
OFFICER/MEMBER EXCLUDED? N/A
(Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $
If yes, describe under
DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ D Excess Workers' Compensation SP4066704 07/01/2023 07/01/2024 Limit 25,000,000 Employers' Liability "$750K SIR (AZ) I $1 M SIR (CA)" Limit 1,000,000 DESCRIPTION OF OPERATIONS/ LOCATIONS/ VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

CERTIFICATE HOLDER
City of Lake Elsinore
130 S. Main Street
Lake Elsinore. CA 92530
I
ACORD 25 (2016/03)

CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

The ACORD name and logo are registered marks of ACORD
DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557

CITY OF LAKE ELSINORE

TO BE POSTED IN A CONSPICUOUS PLACE
Business Name:

Business Location:

Owner Name(s):

BUSINESS LICENSE NO.

Issue Date: Expiration Date:

BUSINESS LICENSE
THIS IS YOUR LICENSE • NOT TRANSFERABLE
PO BOX 11210 Business Type:

SANTA ANA, CA 92711-1210

Administrative Services - Licensing
130 South Main Street, Lake Elsinore, CA 92530
PH (951 ) 674-3124

PRUDENTIAL OVERALL SUPPLY

DONALD C LAHN

DAN CLARK

MOBILE SERVICE AND/OR DELIVERY

VEHICLES
000471
2/1/2023 1/31/2024
Starting January 1, 2021, Assembly Bill 1607 requires the prevention of gender-based discrimination of business establishments. A full notice is available in English or other languages by going to: https://www.dca.ca.gov/publications/ DocuSign Envelope ID: EB6BF169-E028-4BA2-9FFC-CC0F9D888557 22)
Annual On-Call and Construction Contractor Services Agreements in Support of City of Lake Elsinore Minor Construction, Maintenance and Operations Approve the On-Call and Minor Construction Contractor Services Agreements with Endresen Development Inc. in the amount of $500,000, Cotter Construction Inc. in the amount of $500,000, Amber Airconditioning in the amount of $450,000, Pursuit Electric in the amount of $300,000, United Carports, LLC $250,000, SAS Construction in the amount of $250,000 ,R&R B Inc DBA Servpro of Chino in the amount of $200,000, B&B Nurseries Inc. (dba Landscape Center) in the amount of $150,000, BELFOR USA Group Inc. in the amount of $100,000, and J&M Leyva Enterprises in the amount of $100,000 in such final form as approved by the City Attorney.

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REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Rick De Santiago, Public Works Manager
Date:June 10, 2025
Subject:Annual On-Call and Construction Contractor Services Agreements in Support of City of Lake Elsinore Minor Construction, Maintenance and Operations
Recommendation
Approve the On-Call and Minor Construction Contractor Services Agreements with Endresen Development Inc. in the amount of $500,000, Cotter Construction Inc. in the amount of $500,000, Amber Airconditioning in the amount of $450,000, Pursuit Electric in the amount of $300,000, United Carports, LLC $250,000, SAS Construction in the amount of $250,000 ,R&R B Inc DBA Servpro of Chino in the amount of $200,000, B&B Nurseries Inc. (dba Landscape Center) in the amount of $150,000, BELFOR USA Group Inc. in the amount of $100,000, and J&M Leyva Enterprises in the amount of $100,000 in such final form as approved by the City Attorney.

Background
On April 30, 2025, the City placed in PlanetBids the on-call Request For Proposals (RFP) and on or before the amended deadline of May 20, 2025, received 17 proposals from various contractors.

The above 10 contractors’ proposals have been reviewed and selected for on-call agreements.

On-call contracts allow a city to mobilize maintenance and construction services quickly and easily under pre-negotiated terms and conditions. The City may require services due to an urgent matter or because the City is unable to provide or perform those services internally.

Annual On-Call and Minor Construction Services Agreement

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For a city that needs to engage a general or specific maintenance or construction service, the benefits of having an on-call contract in place include:

Wide span of technical expertise
Resource availability and flexibility
Commitments as needed for services
Accelerated procurement and authorization
Independent and objective assessments and proposals
Validation of resolution-oriented actions
The on-call and minor construction services in the City of Lake Elsinore are essential resources to maintain City amenities and efficiently construct low-cost minor projects. Staff solicited proposals for time and materials for minor construction contractor services. Utilizing the submittals from these contractors, additional agreements are needed to sustain these important services. All of these have provided essential contractor services in accordance with the agreement scope of work, which includes but is not limited to the following maintenance/minor construction and repair trade areas commonly utilized by the City and listed below:

Minor Construction and Repair Carpentry (Framing)
Plumbing Electrical
Concrete Masonry
HVAC Painting
Roofing Dry Wall
Finish Wood Working Welding
Sheet Metal Flooring
Demolition & Disposal Data & Communication
Discussion
These on-call contractors will perform a wide variety of on-call repair and minor construction work.

All assigned work will be proposed in writing, reviewed, and negotiated by Staff and approved prior to execution. Several of these contractors have performed as both contractors and subcontractors on several large City and Agency projects at the Diamond Stadium, Rosetta Canyon Sports Park, Launch Pointe RV Resort, City Hall, The Neighborhood Community Center, Camino Del Norte, Anchor, EOC Building, and various other City projects.

These agreements are needed to ensure continued on-call and minor construction contractor support for immediate operational demands and minor construction projects. The sustainment of these essential general requirements provides City-wide, far-reaching minor construction, rehabilitation, and immediate maintenance augmentation of construction and repair services.

Following the approval of this agenda item and the execution of the attached agreement, services will be immediately available to the City. Staff has reviewed and verified that the contractors have valid licenses. A review of the contractors' references and General, auto, and Workers’ Compensation Insurance will be in place, naming the City as an additional insured.

Annual On-Call and Minor Construction Services Agreement

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Fiscal Impact
Funds are budgeted in the Fiscal Year 2025/26 budget.

Attachments
Attachment 1 - Endresen Development Agreement
Exhibit A - Cost Proposal Sheet
Attachment 2 - Cotter Construction Agreement
Exhibit A - Cost Proposal Sheet
Attachment 3 - Amber Air Conditioning Agreement
Exhibit A - Cost Proposal Sheet
Attachment 4 - Pursuit Electric Agreement
Exhibit A - Cost Proposal Sheet
Attachment 5 - United Carports Agreement
Exhibit A - Cost Proposal Sheet
Attachment 6 - SAS Construction Agreement
Exhibit A - Cost Proposal Sheet
Attachment 7 - R&R DBA Servpro of Chino Agreement
Exhibit A - Cost Proposal Sheet
Attachment 8 - B&B Nurseries DBA The Landscape Center Agreement Exhibit A - Cost Proposal Sheet
Attachment 9 - Belfor Agreement
Exhibit A - Cost Proposal Sheet
Attachment 10 - J&M Leyva Enterprises Agreement
Exhibit A - Cost Proposal Sheet
Public Works

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2 AGREEMENT FOR CONTRACTOR SERVICES
Endresen Development Inc.

ON-CALL SERVICES
This Agreement for Contractor Services (On-Call) (the “Agreement”) is made and entered into as of June 10, 2025 by and between the City of Lake Elsinore , a municipal corporation (the “City”) and Endresen Development Inc., a Licensed General Contractor (the “Contractor”).

RECITALS
A. The City has determined that it requires the following services:

On-Call minor construction and repair services.

B. The City has prepared a request for a proposals and Contractor has submitted to City a proposal, dated May 14, 2025, both of which are attached hereto as Exhibit A (collectively, the "Contractor's Proposal") and incorporated herein, to provide services and related work to the City pursuant to the terms of this Agreement.

C. Contractor possesses the skill, experience, ability, background, certification and knowledge to perform the services and related work described in this Agreement on the terms and conditions Agreement.

AGREEMENT

1. Scope of Services. Contractor shall perform the services and related work described in Contractor's Proposal (Exhibit A). Contractor shall provide such services and related work at the time, place, and in the manner specified in Contractor's Proposal (Exhibit A), subject to the direction of the City through its staff that it may provide from time to time. Contractor acknowledges that the Scope of Services provides for 24 hour-a-day, 7 day-a-week, on-call and minor construction support on an as needed basis.

2. Time of Performance .
a. Time of Essence . Time is of the essence in the performance of this Agreement. The time for completion of the services and related work to be performed by Contractor is an essential condition of this Agreement. Contractor shall prosecute regularly and diligently the services and related work contemplated pursuant to this Agreement consistent with Contractor 's Proposal (Exhibit A) and shall provide, furnish and pay all labor, materials, necessary tools, expendable equipment, and all taxes, utility and transportation services required to perform such the services and related work.
b. Performance Schedule . Contractor shall commence the services and related work pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services and related work within the time period(s) established in the Contractor's Proposal (Exhibit A). When requested by Contractor , extensions to the time period(s) specified may be approved in writing by the City Manager .

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2 c. Term and Compliance with Task/Work Order System. Unless earlier terminated as provided elsewhere in this Agreement , this Agreement shall continue in full force and effect for a period commencing on July 1, 2025 and ending June 30, 2028. The City may, at its sole discretion, extend the term of this Agreement on a 12-month basis not to exceed 2 additional twelve (12) month renewal terms by giving written notice thereof to Contractor not less than thirty (30) days before the end of the contract term, such notice to be exercised by the City Manager.

3. Compensation. Compensation to be paid to Contractor shall be in accordance with the fees set forth in Contractor's Proposal (Exhibit A), which is attached hereto and incorporated herein by reference . In no event shall Contractor's annual compensation exceed Five Hundred Thousand dollars ($500,000 ) without additional written authorization from the City. Notwithstanding any provision of Contractor's Proposal to the contrary, out of pocket expenses set forth in Exhibit A shall be reimbursed at cost without an inflator or administrative charge. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment.

4. Method of Payment. Contractor shall promptly submit billings to the City describing the services and related work performed during the preceding month to the extent that such services and related work were performed . Contractor's bills shall be segregated by project task, if applicable, such that the City receives a separate accounting for work done on each individual task for which Contractor provides services. Contractor 's bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. City shall pay Contractor no later than forty-five (45) days after receipt of the monthly invoice by City staff.

5. Background Checks . At any time during the term of this Agreement, the City reserves the right to make an independent investigation into the background of Contractor’s personnel who perform work required by this Agreement, including but not limited to their references, character, address history, past employment, education, social security number validation, and criminal or police records, for the purpose of confirming that such personnel are lawfully employed, qualified to provide the subject service or pose a risk to the safety of persons or property in and around the vicinity of where the services will be rendered or City Hall. If the City makes a reasonable determination that any of Contractor’s prospective or then current personnel is deemed objectionable, then the City may notify Contractor of the same.

Contractor shall not use that personnel to perform work required by this Agreement, and if necessary, shall replace him or her with a suitable worker.

6. Suspension or Termination.
a. The City may at any time, for any reason , with or without cause, suspend or terminate this Agreement, or any portion hereof , by serving upon the Contractor at least ten (10) days prior written notice. Upon receipt of such notice, the Contractor shall immediately cease all work under this Agreement , unless the notice provides otherwise . If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Contractor the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this

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2 Section, the Contractor will submit an invoice to the City, pursuant to Section entitled "Method of Payment" herein.

7. Plans, Reports, Documents
a. Ownership of Documents . All plans, studies, documents and other writings prepared by and for Contractor, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notepad internal documents, shall become the property of the City upon payment to Contractor for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Contractor or to any other party. Contractor shall, at Contractor's expense, provide such reports, plans, studies, documents and other writings to City upon written request. City shall have sole determination of the public’s rights to documents under the Public Records Act, and any third-party requests of Contractor shall be immediately referred to City, without any other actions by Contractor. b. Licensing of Intellectual Property. This Agreement creates a nonexclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights , designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement ("Documents & Data"). Contractor shall require that all subcontractors agree in writing that City is granted a nonexclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data, which were prepared by design professionals other than Contractor or provided, to Contractor by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. c. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor . Contractor shall not, without the prior written consent of City, use such materials for any purposes other than the performance of the services under this Agreement. Nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Contractor, which is otherwise known to Contractor or is generally known, or has become known , to the related industry shall be deemed confidential. Contractor shall not use City's name or insignia , photographs relating to project for which Contractor's services are rendered , or any publicity pertaining to the Contractor's services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

8. Contractor's Books and Records .
a. 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 services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor to this Agreement.
b. Contractor shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period

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2 required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Contractor's address indicated for receipt of notices in this Agreement. d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Contractor's business, City may, by written request by any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained in City Hall. Access to such records and documents shall be granted to any party authorized by Contractor, Contractor's representatives, or Contractor's successor-in-interest.

Contractor shall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner .
b. Notwithstanding any other federal, state and local laws, codes, ordinances and regulations to the contrary, Contractor and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

10. PERS Eligibility Indemnification . In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

11. Interests of Contractor. Contractor (including principals, associates and management employees) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Contractor's services hereunder. Contractor further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.

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2 Contractor is not a designated employee within the meaning of the Political Reform Act because Contractor:
a. will conduct research and arrive at conclusions with respect to his/her rendition of information , advice, recommendation or counsel independent of the control and direction of the City or of any City official, other than normal agreement monitoring ; and b. possesses no authority with respect to any City decision beyond rendition of information, advice, recommendation or counsel. (FPPC Reg. 18700(a) (2).)

12. Ability of Contractor . City has relied upon the training and ability of Contractor to perform the services hereunder as a material inducement to enter into this Agreement. Contractor shall therefore provide properly skilled personnel to perform all services under this Agreement. All work performed by Contractor under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent contractors in Contractor 's field of expertise .

13. Compliance with Laws.
a. Contractor shall comply with all local, state and federal laws and regulations applicable to the services required hereunder, including any rule, regulation or bylaw governing the conduct or performance of Contractor and/or its employees, officers, or board members. b. Contractor represents that it has obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

14. Licenses . Contractor represents and warrants to City that it has the licenses, permits, qualifications, insurance and approvals of whatsoever nature, which are legally required of Contractor to practice its profession . Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Contractor to practice its profession.

Contractor shall maintain a City of Lake Elsinore business license .

15. Indemnity . Contractor shall indemnify, defend, and hold harmless the City and its officials, officers, employees, agents, and volunteers from and against any and all losses, liability, claims , suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Contractor or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Contractor shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises from the sole negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Contractor or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law. It is understood that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Contractor from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement , Contractor acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.

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2 16. Insurance Requirements .
a. Insurance. Contractor, at Contractor's own cost and expense, shall procure and maintain, for the duration of the contract, unless modified by the City's Risk Manager, the following insurance policies.
i. Workers' Compensation Coverage . Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his/her employees in accordance with the laws of the State of California . In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by the City at least thirty (30) days prior to such change . The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. In the event that Contractor is exempt from Worker's Compensation Insurance and Employer's Liability Insurance for his/her employees in accordance with the laws of the State of California, Contractor shall submit to the City a Certificate of Exemption from Workers Compensation Insurance in a form approved by the City Attorney.
ii. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000 ,000) per occurrence for bodily injury, personal injury and property damage . If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Required commercial general liability coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed. 1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability. No endorsement may be attached limiting the coverage.
iii. Automobile Liability Coverage . Contractor shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles , in an amount of not less than one million dollars ($1,000 ,000) combined single limit for each occurrence. Automobile liability coverage must be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 1 ("any auto"). No endorsement may be attached limiting the coverage . b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the following specific language :
i. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers’ Compensation, shall bear an endorsement whereby it is provided that, the City and its officers, employees, servants, volunteers and agents and independent contractors, including without limitation, the City Manager and City Attorney, are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages.
ii. This policy shall be considered primary insurance as respects the City,

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2 its elected or appointed officers, officials, employees, agents and volunteers . Any insurance maintained by the City, including any self-insured retention the City may have, shall be considered excess insurance only and shall not contribute with it. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
iv. The insurer waives all rights of subrogation against the City, its elected or appointed officers , officials, employees or agents . v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers .
vi. The insurance provided by this Policy shall not be suspended , voided , canceled , or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
c. Deductibles and Self-Insured Retentions . Any deductibles or self-insured retentions must be declared to and approved by the City. At the City's option, Contractor shall demonstrate financial capability for payment of such deductibles or self-insured retentions . d. Certificates of Insurance . Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.

17. Notices . Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section .

If to City: City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
With a copy to:City of Lake Elsinore
Attn: City Clerk
130 South Main Street
Lake Elsinore, CA 92530
If to Contractor: Endresen Development Inc.

Attn: Josh Endresen
15301 Alvarado Street
Lake Elsinore, Ca 92530

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2 18. Assignment and Subcontracting . The parties recognize that a substantial inducement to City for entering into this Agreement is the reputation, experience and competence of Contractor .

Contractor shall be fully responsible to City for all acts or omissions of any subcontractors .

Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express consent of the City. Contractor shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the City. If City consents to such subcontract, Contractor shall be fully responsible to City for all acts or omissions of those subcontractors. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law.

19. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

20. Litigation Expenses and Attorneys' Fees. If either party to this Agreement commences any legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys' fees.

21. Mediation . The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation . The parties shall mutually agree upon the mediator and share the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to JAMS or its successor in interest. JAMS shall provide the parties with the names of five qualified mediators . Each party shall have the option to strike two of the five mediators selected by JAMS and thereafter the mediator remaining shall hear the dispute . If the dispute remains unresolved after mediation, either party may commence litigation.

22. Prohibited Interests . Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

24. Prevailing Wages . Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000 , et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. Contractor agrees to fully comply with all applicable federal and state labor laws (including , without limitation, if applicable, the Prevailing Wage Laws). It is agreed by the parties that, in connection with the work or services provided pursuant to this Agreement, Contractor shall bear all risks of payment or non- payment of prevailing wages under California law, and Contractor hereby agrees to defend,

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2 indemnify, and hold the City, and its officials, officers, employees, agents, and volunteers, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. The foregoing indemnity shall survive termination of this Agreement.

27. Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. The City Manager is authorized to enter into an amendment or otherwise take action on behalf of the City to make the following modifications to the Agreement: (a) a name change; (b) grant extensions of time; (c) non-monetary changes in the scope of services; and/or (d) suspend or terminate the Agreement.

28. Counterparts. This Agreement may be executed in several counterparts , each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto . In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart .

30. Amendments . This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney .

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
“CONTRACTOR”
Endresen Development Inc, a Licensed General
Contractor

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2 City Manager
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney
Assistant City Manager
By: Josh Endresen
Its: Owner
Attachments: Exhibit A – Contractor’s Proposal

EXHIBIT A

CONTRACTOR'S PROPOSAL
[ATTACHED]

Endresen Development, INC 15301 Alvarado Street Lake Elsinore, CA 92530

City of Lake Elsinore May 14, 2025

To whom it may concern:

I would like to take this opportunity to introduce to you, Endresen Development, INC. We are a General Construction company located in Lake Elsinore, California. Our Company’s experience includes new construction, minor and major renovations to existing buildings, commercial construction, including tenant improvements. Our goal is to provide you with the best quality construction and customer service while completing the project on time and under budget.

Endresen Development, INC has over forty years of building experience with Josh, as a General Contactor and Jim as a General Contractor and consultant. Both come from a customer service/ residential building background and pride themselves in making sure that the job is of the highest quality and the customer is completely satisfied. Jessica, CFO and accountant ensures the accounting and monetary aspect of the project comes in on target. No company provides the quality and service of Endresen Development, LLC on projects of any size.

Endresen Development, INC is a full-service construction company that has experience in all forms of construction. We offer 24 hour/ 7 days a week emergency services. If needed, we can provide, before, during, and after photos of projects. No job is too small or large. We are fully licensed, bonded, and insured.

I have enclosed for your reference, just a few of our clients that we have made completely satisfied in the past, as well as clients that we continue to do business with.

If you would like any additional information on our company, Endresen Development, INC, please feel free to contact us. We look forward to working with you in the near future.

Thank you

Josh Endresen
Endresen Development, INC
License # 922677
Office- 951-678-1977/ Cell- 951-757-5695
[email protected]

Endresen Development, INC 15301 Alvarado Street Lake Elsinore, CA 92530

Endresen Development, INC is a family owned small company located in Lake Elsinore, California. Josh is a General Contractor with a B construction license. He has been in construction for over 20 years. Josh is a finish carpenter by trade with an eye for detail. Endresen Development, INC recently expanded and has 3 employees in the field that work alongside him. All our employees come from a construction background and have experience in various areas. We also have an accountant/ bookkeeper who keeps the office and financials in order.

Josh has had his General Contractors, B license since 2009- License # 922677. We carry liability insurance, workers Compensation Insurance, and are fully bonded. We are proud to say we have not been involved in any legal issues/ lawsuits and have never had a worker’s compensation claim. Endresen Development, INC always complies with all existing State and Federal laws. We also comply with all OSHA and Cal OSHA standards and requirements.

Endresen Development, INC works with several subcontractors that have similar qualifications and work ethic.

We ensure that our sub-contracts also abide by necessary State and Federal laws and all OSHA and Cal OSHA standards and requirements.

This following is a list of the sub-contractors that we currently work with:

* Advanced Heating and Air (HVAC) Temecula, CA
* JARCO Roofing (Roofing) Perris, CA
* Pursuit Electric (Electric) Lake Elsinore, Ca
* Service First Plumbing and Drain (Plumbing) Lake Elsinore, CA

Endresen Development, LC is an on-call contractor for several Commercial Management Companies and Investment Companies, including the following:

 SR Commercial- Sabrina McChesney
o Lake Elsinore Central Marketplace
 City Com Commercial Property Management
 City of Lake Elsinore
 Val Verde School District

Attachment ACost Proposal Sheet General Maintenance ServicesPlease provide the fee quotes as follows (Include a schedule of rates by classification hourly rates):preferred area, 11= least preferred area). Please attach additional pages if necessary.GENERAL MAINTENANCE SERVICES WAGE RATESConstruction&Maintenance Area*Normal Business Hours Rate**Emergency and After Hours RateUnit of Measure (Hourly, ½ Hour SubcontractorServicesYes / NoBidder Notes (Attached if Needed)Non-Prevailing Wage RatePrevailing Wage RateNon-Prevailing Wage RatePrevailing Wage RateCarpentryFinish Wood WorkingPlumbingElectrical Concrete and MasonryHVACPaintingSheet MetalDry WallRoofingIrrigation RepairMaterial Markup: ____________ % (percent) *Normal Business Hours: 7:30 a.m. to 5:30 p.m. (Monday Friday)**Emergency and After Hours Service: 5:30 p.m. to 7:30 a.m. (Weekends and Holidays)

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Lake Elsinore City CouncilJune 10, 2025

Lake Elsinore City Council
June 10, 2025