Agenda packet, regular meeting, first session — Menifee City Council, January 18, 2023 (part 6 of 7)

The above values are stated subject to the Assumptions and Limiting Conditions of this report, the Appraiser’s Certification and as of November 10, 2022.

Some supporting documentation concerning the data, reasoning and analyses may be retained in the appraiser’s files. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. This Appraisal Report is intended to comply with both the Uniform Standards of Professional Appraisal Practice (“USPAP” January 2020) and with the Appraisal Standards of the California Debt and Investment Advisory Commission (“CDIAC”). The appraiser is not responsible for unauthorized use of this report. The appraised value contained within this report is being estimated with the hypothetical condition of the special tax lien of both series of Menifee CFD No. 2020-1 bonds.

This letter of transmittal is part of the attached report, which sets forth the data and analyses upon which our opinion of value is, in part, predicated.

Respectfully submitted,

KITTY SIINO & ASSOCIATES, INC.

Kitty S. Siino, MAI
California State Certified General
Real Estate Appraiser (AG004793)
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 149
Menifee Mayor and City Council
January 18, 2023
Page
878 of 1063

TABLE OF CONTENTS

Assumptions and Limiting Conditions............................................................................... i Hypothetical Condition .................................................................................................... iii Extraordinary Assumption ............................................................................................... iii Aerial Photo of Menifee CFD No. 2020-1 ........................................................................ iv Purpose of the Appraisal ................................................................................................ 1 The Subject Property ...................................................................................................... 1 Intended Use of the Report ............................................................................................ 2 Definitions ...................................................................................................................... 2 Property Rights Appraised ............................................................................................. 4 Effective Date of Value ................................................................................................... 4 Date of Report ................................................................................................................ 4 Scope of Appraisal ........................................................................................................ 4 Regional Area Map.......................................................................................................... 7 County of Riverside Area Description ............................................................................. 8 Menifee Area Map ......................................................................................................... 17 City of Menifee Description ........................................................................................... 18 Immediate Surroundings ............................................................................................... 21 Community Facilities District No. 2020-1 ....................................................................... 23 Subject Property Descriptions ....................................................................................... 25 Riverside County Housing Market ................................................................................. 31 Highest and Best Use Analysis ..................................................................................... 40 Valuation Analyses and Conclusions ............................................................................ 44 Appraisal Report Summary ........................................................................................... 64 Appraiser’s Certification ............................................................................................... 65

ADDENDA
CFD No. 2020-1 Boundary Map
Tract Map No. 31098
Discounted Cash Flow Analysis
Residential Land Sales Map and Summary Chart
Improved Residential Sales Map and Summary Chart
Appraiser’s Qualifications
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 150
Menifee Mayor and City Council
January 18, 2023
Page
879 of 1063

ASSUMPTIONS AND LIMITING CONDITIONS

1. This report might not include full discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Some supporting documentation concerning the data, reasoning and analyses may be retained in the appraiser’s files. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report.

2. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report.

3. The property is appraised subject to the special tax lien of City of Menifee CFD No. 2020-1.

4. Responsible ownership and competent property management are assumed unless otherwise stated in this report.

5. The information furnished by others is believed to be reliable, however, no warranty is given for its accuracy.

6. All engineering is assumed to be correct. Any plot plans and illustrative material used in this report are included only to assist the reader in visualizing the property and may not be to scale.

7. It is assumed that there are no hidden or unapparent conditi ons of the property, subsoil or structures that would render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

8. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless otherwise stated in this report.

9. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined and considered in this appraisal report.

10. It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.

11. Any sketch included in this report may show approximate dimensions and is included only to assist the reader in visualizing the properties. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee regarding accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 151
Menifee Mayor and City Council
January 18, 2023
Page
880 of 1063

12. It is assum ed that the utilization of the land and improvements are within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report.

13. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert relating to asbestos, urea- formaldehyde foam insulation or other potentially hazardous materials that may affect the value of the property. The appraiser’s value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions or for any expertise or engineering knowledge required to discover them. The appraiser’s descriptions and resulting comments are the result of the routine observations made during the appraisal process.

14. Proposed improvements , if any, are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications.

15. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings , if any, must not be used in conjunction wi th any other appraisal and are invalid if so used.

16. The Americans with Disabilities Act (“ADA”) became effective on January 26, 1992.

The appraiser has made no specific compliance survey and analysis of the property to determine whether they conform to the various detailed requirements of the ADA, nor is the appraiser a qualified expert regarding the requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the AD A, could reveal that the property is not in compliance with one or more of the requirements of the ADA. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, a possi ble noncompliance with requirements of the ADA in estimating the value has not been considered.

17. It is assumed there are no environmental concerns that would slow or thwart development of the subject property and that the soils are adequate to support the highest and best use conclusion.

18. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper qualification and only in its entirety. Permission is given for this appraisal to be published as a part of the Official Statement or similar document in association with the Menifee CFD No. 2020-1 Special Tax Bonds.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 152
Menifee Mayor and City Council
January 18, 2023
Page
881 of 1063

HYPOTHETICAL CONDITION

1. It is assumed that all improvements and/or benefits to the subject properties, which are to be funded by both series of the Menifee CFD No. 2020-1 Special Tax Bond proceeds, are completed and in place or have accrued to the property.

EXTRAORDINARY ASSUMPTION

1. It is an extraordinary assumption that the reported sales and remaining land development costs as received from the builder are true and accurate. We have reviewed both the sales and cost information and they appear reasonable. However, we are not experts in cost estimating and if the cost estimates change, it may change the value conclusions.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 153
Menifee Mayor and City Council
January 18, 2023
Page
882 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page iv
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 154
Menifee Mayor and City Council
January 18, 2023
Page
883 of 1063

PURPOSE OF THE APPRAISAL

The purpose of this appraisal report is to estimate the value of the fee simple interest of the subject property, subject to the special tax lien of both series of the City of Menifee CFD No. 2020-1 Special Tax Bonds.

THE SUBJECT PROPERTY

The subject property is located at the southwest corner of Rouse and Menifee Roads in Menifee. It is encompassed by Menifee CFD No. 2020-1 and is proposed for 258 single- family detached homes on Tract Map No. 31098 being built out as Remington Place by Lennar. The 258 lots encomp ass two product lines : Trailhead at Remington Place and Westward at Remington Place . As of the date of value of this report, Remington Place (including both Trailhead and Westward) has a total of 2 36 completed homes closed to individuals, five model homes (all in escrow), 16 homes over 95 percent complete (all 16 in escrow) and one house under construction (in escrow and due to close upon completion). The status and ownership of the lots are detailed as follows:

Description No. Lots Owner Condition/Status
Trailhead at Remington Place (Lots 1-122 and 125-128 of Tract 31098) Lots 1-115, 119-122, 126-127 121 Individuals Completed Homes Lots 116-118 3 Lennar Model Homes (3 in Escrow)
Lot 128 1 Lennar Over 95% Complete (in
escrow)
Lot 125 1 Lennar Home U/C (in escrow)
Trailhead Subtotal 126
Westward at Remington Place (Lots 123-124 and lots 129-258 of Tract 31098) Lots 129-150, 152, 162-164, 166, 168-169
and 173-258
115 Individuals Completed Homes
Lots 123-124 2 Lennar Model Homes (2 in Escrow)
Lots 151, 153-161, 165, 167 and 170-172 15 Lennar Over 95% Complete (15 in Escrow)
Westward Subtotal 132
Menifee CFD No. 2020-1 Total 258

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 155
Menifee Mayor and City Council
January 18, 2023
Page
884 of 1063

INTENDED USE OF THE REPORT

It is the appraiser’s understanding that the client, the City of Menifee, will utilize this report in disclosure documents associated with selling bonds for Menifee CFD No. 2020-1 and that this report is to be included in the Official Statement or similar document to be distributed in connection with the offering of the bonds. It is the appraiser’s understanding that there are no other intended uses of this report.

DEFINITIONS

Market Value
The term “Market Value” as used in this report is defined as:
"The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue sti mulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest;

3. a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”
1 Inherent in the Market Value definition is exposure time or the ti me the property would have had to have been exposed on the open market prior to the appraisal in order to sell at the concluded values. In the case at hand and considering current market conditions the exposure time for the builder-owned lots and houses or for an individually owned home is under one year.

1 The Appraisal of Real Estate, 13th Edition
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 156
Menifee Mayor and City Council
January 18, 2023
Page
885 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 3
Minimum Market Value
The term “Minimum Market Value” as used in this report is defined as:
“The base market value of a home. That is, most buyers purchase some upgrades, options and/or lot premiums when purchasing a new home. The sales price for the new home typically includes the base price for the plan, plus any upgrades, options or lot premiums, less concessions, if any, which were given or paid for by the builder. The concluded minimum market value is for the base value of the plan only, not taking into consideration any upgrades, options or premiums.”

Mass Appraisal
The term “Mass Appraisal” as used in this report is defined as:
“The process of valuing a universe of properties as of a given date using standard methodology employing common data and allowing for statistical testing”
2 In the case at hand, the statistical testing included reviewing all original builder sales , reviewing the Multiple Listing Service for re-sales and current escrows (if any) and determining the actual range of sales and escrow prices for each plan type which is utilized in the valuation process.

Hypothetical Condition
The term “Hypothetical Condition” is defined by USPAP as:
“That which is contrary to what exists but is supposed for the purpose of the analysis”

The Hypothetical Condition within this report is that subject property is enhanced by the improvements and/or fee credits to be funded by bonds issued by both series of Menifee CFD No. 2020-1.

Extraordinary Assumption
The term “extraordinary assumption” is defined by USPAP as:
“An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusion”

2 USPAP 2020-2021 Edition
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 157
Menifee Mayor and City Council
January 18, 2023
Page
886 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 4
The extraordinary assumption in this report is that the reported sales information and remaining land development cost information, as received from the builder, are true and accurate. We have reviewed the sales information and verified samples against public record information; however, all sales have not been verified through public record. In addition, we have reviewed the costs and they appear reasonable; however, we are not experts in the field of cost estimating. It should be noted that these costs were relied upon in the valuation of the subject propert ies and if the actual costs differ, it could alter the value conclusions.

PROPERTY RIGHTS APPRAISED

The property rights being appraised are of a fee simple interest, subject to easements of record and both series of Menifee CFD No. 2020-1 bonds. The definition of “fee simple estate” is defined by USPAP as:
“absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”

EFFECTIVE DATE OF VALUE

The subject property is valued as of November 10, 2022.

DATE OF REPORT

The date of this report is December 19, 2022.

SCOPE OF APPRAISAL

As previously stated, the purpose of this appraisal is to report the appraiser ’s best estimate of the market value for the subject properties. This appraisal will be presented in the following format:
• County of Riverside Description
• City of Menifee Description
• Immediate Surroundings
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 158
Menifee Mayor and City Council
January 18, 2023
Page
887 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 5
• Brief Description of City of Menifee CFD No. 2020-1
• Subject Property Description
• Riverside County Housing Market Discussion
• Highest and Best Use Analysis
• Valuation Procedures, Analyses and Conclusions
• Appraisal Report Summary

The subject property consists of 258 proposed single- family ho uses within two neighborhoods. There are 236 homes completed and closed to individuals, five models (all five in escrow), 16 homes over 95 percent complete (all 16 in escrow), and one home under construction ( also in escrow) which was the parking lot for the model home complex. In valuing the subjec t property, the value estimates will be based upon the highest and best use conclusion using the Sales Comparison Approach. The Sales Comparison Approach to value is defined as:
“…a set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale prices of the comparables based on the elements of compari son. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales is available.”
3 In the Sales Comparison Approach, market value is estimated by comparing properties similar to the subject property that have recently been sold, are listed for sale or are under contract. Neither a cost or income approach was utilized as they were not considered necessary to arrive at credible results.

The due diligence of this appraisal assignment included the following:

1. Compiled demographic information and related that data to the subject propert ies to perform a feasibility/demand analysis.

2. Gathered and analyzed information on the subject marketplace, reviewed several real estate brokerage publications on historical and projected growth in the subject market and researched the micro and macroeconomics within Riverside County and the Menifee area.

3. Inspected the subject property between October 1, 2022 and November 10, 2022.

3Dictionary of Real Estate Appraisal, 4th Edition, 2002 Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 159
Menifee Mayor and City Council
January 18, 2023
Page
888 of 1063

4. Had the property flown for an aerial photograph on October 18, 2022.

5. Interviewed representatives from the builder s to obtain available information on the subject property.

6. Reviewed a Preliminary Title Report on the subject property.

7. Reviewed a Soils Report on the subject lots.

8. Reviewed the City of Menifee General Plan Land Use Map, Zoning Map and recorded Tract Map regarding entitlements and allowances on the subject site.

9. Searched the area for relevant comparable new home residential projects, including sales prices and concessions and interviewed representatives from each comparable neighborhood.

10. Reviewed sales brochures and sales information on each of the subject neighborhoods.

11. Reviewed actual builder sales information on all closed homes and current escrows for each neighborhood.

12. Reviewed Multiple Listing Service (“MLS”) information on re-sales and current listings of existing homes within City of Menifee CFD No. 2020-1.

13. Inspected the subject propert y for any for-sale or property listing signs that may not be listed on the MLS yet.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 160
Menifee Mayor and City Council
January 18, 2023
Page
889 of 1063

REGIONAL AREA MAP

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 161
Menifee Mayor and City Council
January 18, 2023
Page
890 of 1063

COUNTY OF RIVERSIDE AREA DESCRIPTION

Location
The subject property is located in the sout hwest portion of Riverside County (the “County”) east of I-215 and north of McCall Boulevard in the northern portion of the City of Menifee (“City”).

The County encompasses approximately 7,300 square miles, and includes large expanses of undeveloped deserts, valleys, canyons and mountains. The County is a major beneficiary of outward urban pressure from Orange and Los Angeles Counties as well as growth from San Diego County to the south. Although located at the periphery of most urban activity in Southern California, Riverside County, particularly the western area, has been a major growth area and is perceived by most observers as an area expected to continue to grow. Riverside and San Bernardino Counties are considered distinct from Los Angeles and Orange C ounties and belong to the same Metropolitan Statistical Area (“MSA”). This area, consisting of San Bernardino and Riverside Counties, is commonly referred to as the Inland Empire.

Transportation
The subject property is situated northeast of I-15, east of I-215, north of McCall Boulevard and south of Highway 74 at the southwest corner of Menifee and Rouse Roads in Menifee. I-15 travels in a northerly/southerly direction and provides access to Barst ow and Nevada to the north and San Diego to the south. Highway 74 is approximately one mile north of the subject and provides access to the west into Orange County on what is also known as Ortega Highway and access to the east into the City of Hemet . Interstate 215 is approximately 1.75 miles west, travels in a northerly/southerly direction within the County, branching off from I-15 and heading generally north where it parallels I-15 to the east and merges back into I -15 approximately 37 miles northwest of the subject in San Bernardino County. In addition, the 60 Freeway runs in an east -west direction approximately 15 miles north of the subject providing access into Los Angeles County to Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 162
Menifee Mayor and City Council
January 18, 2023
Page
891 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 9
the west and merges with Interstate 10 to the east which provides access across California and into Arizona.

The County is served by Amtrak and Metrolink as well as several rail freight lines. The Ontario International Airport provides regional air service and is located approximately 33 miles northwest of the subject property while the Orange County Airport is located approximately 40 miles west and the San Diego International Airport is located about 70 miles south. In addition, the County has extensive trucking corridors along the previously referred to interstates, highways and state freeways.

Population
The County has experienced population growth for several decades and is anticipated to continue to do so in the foreseeable future. Per the California Department of Finance, the January 1, 2022 County population was 2.436 million, representing a one- year increase of 0.5 percent. This compares to an average annual growth rate over the past twelve years of about 0.9 percent , and an average annual growth rate of approximately 2.5 percent for the previous eighteen- year period. Current State projections for Riverside County suggest the population is anticipated to reach approximately 2.728 million by 2030, indicating an average annual increase of approximately 1.49 percent over the next eight years. The current growth of 0.5 percent is lower than the previous twelve- year annual average of about 0.9 percent likely due to the COVID pandemic disruption, and significantly lower than the previous 18-year average (2.5 percent) likely due to the Great Recession. The future growth is predicted assuming a more stable market than was seen prior to the Great Recession.

Economy
The U.S. economy experienced what is now known as the COVID recession beginning in late February 2020 as the COVID pandemic began. The Federal, State, County and City Governments (“Governments”) originally shut down non-essential businesses and areas where social gatherings occur in order to slow the spread of the virus. This created a strain on small and large businesses alike. Restaurants and hotels were hit hard and travel reduced drastically as citizens were urged to stay home. Layoffs occurred with Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 163
Menifee Mayor and City Council
January 18, 2023
Page
892 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 10
reports of 40 million people filing for unemployment the first few months of the pandemic.

The Governments attempted to curtail the job losses and hardships with the approval of legislation while the Federal Reserve Board (“Board”) reduced interest rates and started quantitative easing by buying bonds.

Between March 2020 and the end of 2021, the Governments approved legislation providing for over $5.6 trillion in COVID relief to our nation including the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, Federal Reserve COVID loans and the American Rescue Plan Act. This legislation helped shore up the U.S. economy; however, due to the significant amount of new money introduced into the economy, inflation began occurring at a rate not seen for 40 year s. As of October 2022, the national inflation rate was 7.7 percent, down from September’s 8.2 percent and compared to an 4.7 percent for 2021, 1.24 percent for 2020 and an average of 1.74 for the previous ten years. Whether it is a result of the supply chain issues due to COVID or from the additional money entering the economy, inflation is hitting Americans hard. The Russian invasion of Ukraine created significant volatility in gas prices which has further increased inflation. In an effort to curb inflation the Federal Reserve Board has begun raising interest rates. Thus far in 2022, there have been six interest rate increases with another anticipated in December. Due to the slight decrease in inflation in October, it is thought that the December increase m ay not be at 0.75 percent but rather at 0.50 percent . The increases this year has increased a typical 30-year fixed mortgage rate from 2.98 percent as of November 10, 2021, to 7.08 percent as of November 10, 2022 (per Federal Reserve Economic Data-St. Louis) which is significantly affecting the real estate market.

In addition to increasing the Federal Reserve Rate (“FRR”), the Board began tapering off buying Treasury Bonds and Mortgage- Backed Securities (“MBS”). Along with dropping the interest rate at th e beginning of the pandemic, the Board began quantitative easing by buying $80 billion Treasury Bonds and $40 billion MBS each month which put more new money into the economy. Towards the end of 2021, the Board began tapering off the purchases and in June 2022, began quantitative tightening which allows investments to mature and be removed from the marketplace. This will reduce the size of the Board’s balance sheet and further restrict credit activity. In September 2022, the amount of Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 164
Menifee Mayor and City Council
January 18, 2023
Page
893 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 11
quantitative tightening doubled, which is estimated to be equivalent to an additional 0.25 – 0.75 interest rate increase effect on the economy.

The COVID disruption to the economy also caused extreme volatility in the stock market with the Dow Jones Industrial Average (“DJIA”) dropping from 29,398 in February 2020 to 19,174 in March, 2020, a drop of 37 percent. The Government interventions resulted in a bounce back in the DJIA to 27,111 by June 2020 with the stock market then climbing up to an all-time high of 36,799 in January 2022. In February 2022 Russia began invading Ukraine which caused volatility in world economics and, more recently, U.S. inflation is hitting historical highs, resulting in the Board raising interest rates. Both factors have caused a drop in the DJIA of over nine percent (to 33,399 as of November 10, 2022).

The significant increase in mortgage rates over the past nine months is just one part of the puzzle demonstrating the impact of housing on the broader economy. Additional risks include both existing and new supply chain challenges, companies trying to find balanced inventory levels, both wage and price spirals , and persistent inflation. Over the past 25 years, the Riverside County economy has had significant cycles with home prices almost doubling from 1995 to 2005, then falling by over 50 percent during the Great Recession, taking prices back to 2002 levels. Home values appeared to hit bottom in 2009 then remained essentially flat for two to three years with the majority of the Riverside County housing market seeing an improvement beginning in mid-2012. Contrary to homebuilder’s original thoughts of a slowdown due to the pandemic, new home buyers stepped up in the spring of 2020 and new home sales were signif icantly higher during the second half of 2020 versus the previous year and continued extremely strong throughout 2021. This exceptional activity in new home sales was the one bright spot in the COVID recession and is thought to be due to several factors including : a tight re -sale supply of homes; historically low interest rates; millennials finally buying homes; and, the work from home factor which began during the pandemic and allowed residents to live in more suburban areas without long commutes.

While most jobs have come back, job losses were significant with the Nation’s unemployment rate going from 3.5 percent in February 2020 to 14.4 percent in April 2020 Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 165
Menifee Mayor and City Council
January 18, 2023
Page
894 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 12
with the September 2022 National unemployment rate at 3.3 percent (California Department of Finance). On October 12, 2022 the Congressional Budget Office (“CBO”) Forecast for the U.S. Economy stated that economic weakness will intensify and spread more broadly over the coming months with a recession to begin before the end of 2022.

They forecast that Real GDP growth will come in at 1.5 percent year -over-year in 2022 and that 2023 growth will slow to zero percent year -over-year. The CBO states they expect this coming recession to be relatively short and somewhat mil d as the U.S. will begin to emerge from the slowdown in 2023. They do note that there are risks which can significantly change their forecast , including: (1) the Board may increase rates more aggressively than expected; (2) the housing market could see a major correction; and, (3) inflation could be even more persistent than forecasted. Each of these risks would result in a longer and deeper contraction in 2023. The only upside risk is if inflation has a rapid, unexpected decline.

Prior to the COVID-19 pandemic, the Nation was experiencing a strong economy. As with the rest of the nation, the Inland Empire experienced a strong multi -year recession, now referred to as the Great Recession, between 2006 and 2012. The MSA, which had strong employment over the ten previous years saw unemployment rates increase significantly between December 2006 and early 2010, at which time a leveling off occurred followed by continued employment growth (generally since July 2011) until the pandemic hit.

The unemployment rate for the MSA was estimated at 3.9 percent (as of September 2022 per the Employment Development Department). This reflects a decrease from the peak during the Great Recession of 15.1 percent in 2010 and a decrease from the peak during COVID of 14.9 percent. As of September 2022, Riverside County’s unemployment rate was 4.0 and San Bernardino County h ad a 3.8 percent unemployment rate. The current unemployment rate for the MSA of 3.9 percent is similar to the California rate at 3.7 percent and slightly higher than the September 2022 National rate of 3.3 percent. Below is a table comparing Riverside County’s unemployment rate to the unemployment rates of the surrounding counties as of September 2022.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 166
Menifee Mayor and City Council
January 18, 2023
Page
895 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 13
Jurisdiction As of Unemployment Rate*
Los Angeles County 9/22 4.8%
Riverside County 9/22 4.0%
San Bernardino County 9/22 3.8%
Orange County 9/22 2.7%
San Diego County 9/22 3.1%
Source: State of California E.D.D.; *Not Seasonally Adjusted

The latest UCLA Anderson Forecast (“Forecast”) was issued September 21, 2022 stating that the chance of a recession in the next 12 months is less than 50 percent; however, uncertainty remains with the FRR increases, which if too high and fast could drive the economy into a recession. The economy currently has mixed signals with the positives including: a robust labor market, strong consumer spending, an easing of COVID related supply chain constraints, an increase in government defense spending resulting from geopolitical instability, and the return of manufacturing to the U.S. from overseas. The possible negatives include: persistent inflation, increasing interest rates which will constrain consumer spending and business investment, consumer pessimism, and a downturn in the housing market. Unfortunately, since this UCLA Forecast was written, interest rates have risen, consumer pessimism appears to be growing, inflation is not being reduced as hoped and the housing market is seeing not only sales decrease but also price decreases. The Forecast for economic growth is similar to the CBO predictions with GDP estimated to grow on average 1.5 percent in 2022, 0.3 percent in 2023 and 2.0 percent in 2024.

The UCLA Forecast for California is generally positive with strong sectors in California including leisure and hospitality, health care a nd social services, technology and construction. Increases in U.S. defense spending and demand for technology will likely keep the State’s economy growing. However, they are examining the impact of the State’s recent declines in population. The migration out of State due to the pandemic coupled with a lack of international immigration and lower birth rates has resulted in a historic reversal of California’s annual population gains. In order to determine if the population decline will affect California’s economy, the Forecast reviewed the state’s GDP, investment, job growth and relative housing prices and the data collected refutes the notion that the state is in decline. They predict the average unemployment rate for Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 167
Menifee Mayor and City Council
January 18, 2023
Page
896 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 14
California to be 4.5 percent for 2022, 4.1 percent for 2023 and 4.5 percent for 2024, all historically low. Real personal income is forecast to decline by 4.5 percent in 2022, then grow by 2.4 percent in 2023 (as a function of the transfers from economic relief packages expiring) and then grow by 2.9 percent in 2024. The California Forecast states there will be continued demand for a limited housing stock and in spite of higher mortgage rates, increased homebuilding through 2024 with 124,000 new units permitted in 2022 growing to 143,000 new units in 2024.

As a final indicator of overall economic activity for the region, we have reviewed the rise and fall of TEUs (Twenty-foot Equivalent Units – i.e., containers) being processed in the local ports. This is especially important for the Inland communities, as it represents much of the growth in development of west coast distribution centers and warehouses in the Inland Empire linked to supply -chain nodes in the Pacific Rim. The chart below shows TEU activity at the Port of Long Beach. Generally, there has been increases since 2009 with the exception of a slight dip in 2016 and again in 2019 which ended with a 5.6 percent downturn. The fiscal year to date through September is showing a 1.4 percent change over the previous year. Supply chain issues were increased during the pandemic due to the back-up at the Southern California ports. Per the Orange County Register (Lack of product demand hurts drivers, October 31, 2022) consumer demand has cooled recently leaving fewer TEUs needing to be driven from the ports. They are stating shipments have slowed due to American demand finally waning after the pandemic coupled with some major retailers bypassing the California ports for East Coast ports to avoid a possible upheaval by West Coast dockworkers as they negotiate a new contract. It is still early to tell if the slowdown in work for the dray operators (drivers who ship containers in and out of the ports) will result in a slowdown in overall TEU demand.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 168
Menifee Mayor and City Council
January 18, 2023
Page
897 of 1063

A Board of Supervisors oversees the County as the governing body of the County, certain County special districts , and the County Housing Authority. The Supervisors enact ordinances and resolutions, adopt the annual budget, approve contracts and appropriate funds, determine land use zoning for unincorporated areas , and appoint certain County officers and members of various boards and commissions. The Board of Supervisors is elected from five different districts within the County.

Education
Romoland School District (K thru 8th) and the Perris Union High School District serve the subject area. The Romoland School District operates four elementary schools and two middle schools. Perris Union High School District covers a larger area than Romola nd and operates five high schools, four alternative high schools and one alternative middle school to serve the greater Perris area including Menifee. Higher education is available within an hour’s drive at the University of California campuses at Riverside and Irvine or California State University campuses in San Bernardino, San Marcos, Fullerton and Pomona along with several additional private colleges. The closest community college is Mt. San Jacinto College.

Conclusion
Population in the County has increased over the past 30 years with predictions for continued population growth. The Nation’s economy stalled during the COVID Recession in March 2020 with housing the one bright spot in the economy during the pandemic. The region’s relative affordability, coupled with the rising prices in the coastal market and the need for new housing, set up a boom in the Inland Empire. Beginning the second half of 2020 through the first three months of 2022, Inland Empire new home sales skyrocketed, in part due to residents leaving urban areas for more suburban areas due to COVID factors coupled with historically low interest rates. The government interventions, while helping to shore up the economy, introduced a significant amount of new money into the system led to severe inflation, which is at the highest it has been in four decades leading to the Federal Reserve Board increas ing interest rates. The FRR has gone from zero to four percent in the past six months. Current concerns in the Inl and Empire economy Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 169
Menifee Mayor and City Council
January 18, 2023
Page
898 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 16
include inflation, the high prices of homes, rising interest rates, supply chain issues, and the Russian invasion of Ukraine, which are all creating volatility in both local and global financial markets. In conclusion, the County is expected to continue to grow in population due to its Southern California location, the availability of land and the relatively lower land and housing prices in comparison to adjacent Orange, Los Angeles and San Diego Counties. However, due to inflation, rising interest rates, and other factors, there are some anticipated bumpy roads ahead.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 170
Menifee Mayor and City Council
January 18, 2023
Page
899 of 1063

MENIFEE AREA MAP

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 171
Menifee Mayor and City Council
January 18, 2023
Page
900 of 1063

CITY OF MENIFEE DESCRIPTION

The subject property is located near the northern border of the City, which is located in the southwestern portion of the County. Menifee became a city in October 2008 after voting to incorporate. Menifee was the 26 th city within the County of Riverside and is located along both sides of I -215 between Murrieta and Perris. The City includes the diverse lifest yle communities of Menifee, Sun City, Quail Valley and portions of Romoland. The City is bordered by unincorporated lands and the City of Murrieta to the south, the cities of Lake Elsinore and Canyon Lake to the west, the City of Perris and unincorporated lands to the north and unincorporated lands to the east.

In the 1960s, early development of the Menifee Valley began when the concept of an active retirement community was envisioned for Sun City. Since that time the Menifee Valley has grown substantially. At incorporation in 2008, the City of Menifee had a total population of 60,000 residents. The Menifee Valley includes some portions of Romoland that are not included within the city limits. Although this area currently serves as a bedroom community for the workforces of North San Diego County, Temecula, Riverside, Corona and Orange County, economic development groups are in the process of recruiting future quality employers to relocate in the Menifee Valley. There have been several new commercial developments on the I -215 corridor south of McCall Boulevard including major shopping centers at the Newport Road off ramp, the Menifee Town Center west of the off ramp and an additional shopping center at Clinton Keith Road. Per the City of Menifee Economic Development website, there are 28 commercial projects under active construction and an additional 17 commercial projects either under review or in the plan review process.

Between 1990 and 2003, there was an extraordinary growth rate of 48 percent in the community of Menifee. The population is estimated at 106,627 as of January 2022 per the Department of Finance, representing a growth of 2.9 percent year -over-year. This compares to the Riverside County past year’s growth of 0.5 percent from January 2021 to January 2022. The City’s higher growth rate than the County is due to the wide expanses of land available for development within the City, and because of the master planned communities such as Audie Murphy Ranch (recently built -out), Banner Park, Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 172
Menifee Mayor and City Council
January 18, 2023
Page
901 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 19
Quartz Ranch, Shadow Mountain (immediately west of subject), future development Legado (near I -215 and McCall) and Remington Park (subject), as well as single new home tracts.

In the past 15 years Menifee has had exceptional growth in the commercial and retail sector. Prior to the Great Recession several shopping centers were either constructed or planned. Included are the Town Center Marketplace, which is anchored by Aldi Market, Pet Smart and several national restaurants (located at the southwest corner of Haun and Newport Roads), and the popular Menifee Countryside Marketplace, which is anchored by Target, Lowe’s, Kohls, Ulta, TJ Maxx, Best Buy and Home Goods along with numerous restaurants (located at the southeast corner of Haun and Newport Roads). The Town Center Specific Plan (“TCSP”) includes 170-acres of mixed use with a proposed City Hall, a Fairfield Inn & Suites by Marriott on Town Center Drive, along with several recently closed out new home neighborhoods including: Camden Place by Taylor Morrison; The Townes; Union Place and The Village by Lennar; and Artesa, a large upscale apartment project. Prior to the COVID pandemic shutdowns, the Krikorian theaters were under construction within TCS P along with a Krikorian retail center planned adjacent to the theaters. However, the shutdown of the economy stopped construction. The theater has been caught in litigation for two years with contractor lawsuits. Aside from the Krikorian theater, other new commercial development is back underway with both Center Pointe (retail northwest of the theaters) and Menifee Plaza (retail northeast of theaters), which front Newport Road, resuming construction and signing new leases. Along the north side of Newport at Haun Road is a newer commercial area that houses the new Menifee Union School District’s administration building, the existing City Hall, a new Post Office and several national chain restaurants.

The Menifee community also benefits from its proximity t o Diamond Valley Lake, which was dedicated on March 18, 2000 and initially filled by the end of 2002. Diamond Valley Lake is located approximately five miles to the east of the City and is a 13,000- acre site with a 4,500-acre reservoir for boating and fishing. There is no swimming, water skiing or personal watercraft allowed in Diamond Valley Lake. The reservoir contains 800,000 acre-feet (260 billion gallons) of water and is owned by the Metropolitan Water District.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 173
Menifee Mayor and City Council
January 18, 2023
Page
902 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 20
Access to Diamond Valley Lake is via Newport Road between I-215 and State Route 79, which was completed in 2008.

Land prices in the Menifee area have been historically lower than prices in the Murrieta and Temecula areas. As housing prices increased in the early 2000s, the price difference narrowed between Menifee and Murrieta/Temecula, however, there is still a variance.

The price difference appears to be due to the Murrieta/Temecula area being along the I - 15 corridor, which commands a premium due to easier commuting to adjacent counties.

Menifee is located along the I -215 corridor, which creates a slightly longer commute to employment centers.

As discussed under the economy section under County of Riverside Area Description, new home sales had prospered during the COVID pandemic and Menifee is no exception.

Per the October 23, 2022 Ryness Report (a new home sales tracking and research company), there are 49 new home projects currently selling in the South Riverside submarket with 27 of the 49 new home projects located in Menifee. The aver age sales rate per project for the week ending October 23, 2022 in the South Riverside submarket was 1.51 homes per month which is a significant drop from the average 2021 sales rate per project was 4.33 sales per month. This appears to be due to the rising mortgage rates and the high price of homes.

In summary, the future growth of Menifee should continue. There are several commercial and residential developments both under construction and planned in the area. Housing is less expensive than the Murrieta/Temecula neighboring communities which is attractive to homebuyers as price points are important in today’s Inland Empire housing market.

Diamond Valley Lake is another asset to the Menifee Valley area. The lower land prices and the availability of land for development combine to make Menifee an excellent candidate for future growth.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 174
Menifee Mayor and City Council
January 18, 2023
Page
903 of 1063

IMMEDIATE SURROUNDINGS

The subject property is located at the southwest corner of Rouse Road and Menifee Road in the northern portion of the City of Menifee. The immediate area generally includes vacant lands, the Boulder Ridge Elementary School, recent development and planned development. To the north and northeast are Romoland and Homeland, two unincorporated communities in Riverside County. To the northwest is the City of Perris while to the east is the master planned community of Heritage Lake beyond which is the unincorporated area of Winchester with Hemet further to the east. To the south is a large vacant parcel with a hilly, undeveloped area to the south (beyond McCall Boulevard).

Immediately surrounding the subject site north of Rouse Road are generally vacant lands up to Matthews Road/Case Road beyond which is a large Edison transfer station. West of the subject is the new community of Shadow Mountain by KB Home with four new home communities currently selling known as Persano, Indigo and the recently opened Durango and Oak Shade, both within a microgrid community. South of the western portion of the subject is the Boulder Ridge Elementary School, while south of the eastern portion of the subject is a vacant parcel which is proposed for a future shopping center. South of Boulder Ridge and the vacant parcel is McCall Boulevard, a major arterial through the northern portion of Menifee with on/off ramps to I-215. East of the subject, across Menifee Road is the existing Heritage Ranch, a portion of the Menifee Valley Ranch Specific Plan No. 301. Specific Plan No. 301 was originally approved in 1997 however, there have been several amendments. The current plan allows for development of a maximum of 4,532 dwelling units, K -8 schools and a high school along with some commercial use, parks, greenbelts, the lake and a golf course. The southern half is built out with Heritage Lake complete surrounded by completed residential neighborhoods. The high school, Heritage High, is also complete in the northern portion of Specific Plan No. 301.

The subject property was generally level at street grade of surrounding Rouse and Menifee Roads when it was purchased by Lennar in December 2018. The site has been developed into 258 home sites along with a 4.97- acre landscaped open space/trail/drainage easement which bisects the site in an L- shape. In addition, there is Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 175
Menifee Mayor and City Council
January 18, 2023
Page
904 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 22
a 4.87-acre park site within the subject tract that is nearly complete which includes picnic areas, playgrounds, a tot lot/play area, sports courts and fields.

Shopping is available t o the community within two miles at I -215 and McCall Road with several large centers anchored by a Vons and a Stater Brothers supermarket. About three miles south along Menifee Road at the corner of Newport Road is another neighborhood shopping center anch ored by a second Stater Bro thers supermarket. More regional shopping is available about three miles southwest at Menifee Countryside Marketplace at the southwest intersection of Newport Road and I -215. Countryside Marketplace is anchored by a Target, Home Depot and a Kohls. The new Menifee Towne Center is just west on Newport from the Countryside Marketplace. It was under construction prior to COVID however appears to have stopped construction at this time. Upon completion , Menifee Town Center will include movie theaters, a bowling alley and retail shops, along with the future City Hall. Approximately 14 miles south is Promenade Temecula, a major shopping mall anchored by Macy’s, JC Penney and Edwards Cinema. The mall is located off the I- 15 near the inter section of I -215 and Winchester Road (State Route 79). In addition to shopping and entertainment, the Menifee Global Medical Center is located on McCall Boulevard about 0.5 miles west of the subject.

The subject property is located within the Romoland School District (K-8 th) and the Perris
Union High School District (9th -12th). The community is served by Heritage High School, within two miles northwest of the subject; Ethan A Chase Middle School located a little over one mile southeast of the subject; and, Boulder Ridge Elementary School within walking distance from the subject (adjacent to the south of Westward).

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 176
Menifee Mayor and City Council
January 18, 2023
Page
905 of 1063

Menifee CFD No. 2020-1 was formed per the Resolution of Intention of the City Council of the City of Menifee dated August 5, 2020 as Resolution No. 2020- 941. Per the City of Menifee CFD No. 2020-1 CFD Report, as of fiscal year 2019/20 the CFD was comprised of seven Assessor Parcels covered by Tentative Tract Map No. 31098 which subsequently subdivided the site into 258 single family detached lots. The boundary map is shown below.

Per the CFD Report prepared by Spicer Consulting Group, the types of facilities that are proposed by Menifee CFD No. 2020-1 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, park, roadway, traffic, administration and community center facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”) and (ii) water and sewer facilities including the acquisition of capacity in the sewer sy stem and/or water system of the Eastern Municipal Water District which are included in EMWD’s water and sewer capacity and connection fee programs (the “Water District Facilities”) and (iii) school facilities including the construction, purchase, modificat ion, expansion, improvement or rehabilitation of school facilities for the Romoland School District and Perris Union High School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 177
Menifee Mayor and City Council
January 18, 2023
Page
906 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 24
improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five years at such school facilities (the “School Facilities”), and (iv) electrical utility undergrounding and dry utilities (the “Utilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities. In addition, incidental expenses include the cost of engineering, planning and designing the Facilities; and all costs including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District and any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities. According to the CFD Report, the Cost Estimate of the eligible facilities are $4,166,855 for City of Menifee facilities and fees, $4,027,560 for EMWD fees and facilities, Romoland School District fees of $3,202,560, Perris Union High School District fees of $744,014 and Dry Utility Improvements of $800,000. In January 2022, the first series of bonds for Ci ty of Menifee CFD No. 2020- 1 was funded in the amount of $11,040,000. The maximum amount authorized for City of Menifee CFD No. 2020- 1 is $18,000,000 per the Resolution of Intention, leaving approximately $7,000,000 for the second series of bonds. Per the latest sources and uses of funds dated November 15, 2022, they are projecting a bond par amount of $3,050,000 along with a net original issue discount of $48,325 which includes $2,506,594 of project fund deposits, a debt service reserve fund of $244,081 and costs of issuance and underwriter’s discount of $251,000 (all estimated amounts subject to change). It is the appraiser’s understanding this is the second and final bond issuance for City of Menifee CFD No. 2020-1. A larger copy of the City of Menifee CFD No. 2020-1 boundary map is located in the Addenda for your review.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 178
Menifee Mayor and City Council
January 18, 2023
Page
907 of 1063

SUBJECT PROPERTY DESCRIPTION

The subject property consists of 258 proposed single-family homes within the community known as Remington Place being developed by Lennar.

Location: Southwest corner of Menifee and Rouse Roads, Menifee, California

Legal Description: Lots 1-258 of Tract No. 31098 located in City of Menifee, County of Riverside, California.

Owner of Record: Individual owners as to Lots 1-115, 119-122, 126-127, 129-150, 152, 162-164, 166, 168-169 and 173-258 of Tract No. 31098; and Lennar Homes of California, LLC as to Lots 116 -118, 123-125, 128, 151, 153-161, 165, 167 and 170-172 of Tract No. 31098.

Three-Year
Sales History: Lennar purchased the 258 lots in a raw land condition from Strata Equity Group in December 2018 for $9,000,000 per public record documents. The property closed with an approved tentative tract map and final engineering in process. Of the 258 proposed homes,236 homes have closed to individual homebuyers with closing dates between January 2, 2021 and November 10, 2022. As of November 10, 2022 the final 22 proposed homes are in escrow and due to close upon completion.

Assessor’s Parcel
Numbers: The subject 258 lots encompass Assessor’s Parcel Numbers 333- 840-001 thru 015; 333-841-001 thru 052; 333-850-001 thru 023; 333- 851-001 thru 016; 333-852-001 thru 022; 333-860-001 thru 022; 333- 870-001 thru 030 and 032 thru 061; 333-880-001 thru 020; and, 333- 881-001 thru 028.

Property Taxes: We have reviewed the Riverside County Tax Collector’s 2022/23 tax bill for APN 333-860-003, a sample lot within Remington Place. Per the tax collector the total 2022 property tax invoice is $11,899.42 based on an assessed value of $621,920. The general -purpose taxes are $6,219.20; the miscellaneous charges (includes Perris Union HS, Mt. San Jacinto Jr. College, MWD East,
Stormwater/Cleanwater, EMWD Infrastructure, V -Wide LMD, V - Wide Menifee North Park LMD and MWD Standby) total $913.00; the special assessment for CFD 2017- 1 (Maintenance Services) is $972.90 and for CFD 2020-1 (subject CFD) is $3,794.32. Based on the current assessed value of the home of $621,920 the overall taxes equate to 1.91 percent.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 179
Menifee Mayor and City Council
January 18, 2023
Page
908 of 1063

Flood Zone: Per the County of Riverside a flood plain review is not required.

Size and Shape: The neighborhood is irregular in shape and includes 86.03 gross acres and 59.3 net acres per recorded Tract Map No. 31098. The difference between the gross and net acreage includes one- half width of Rouse and Palomar Roads, a 4.87- acre park/water quality basin site, 4.97 acres of the open space/trails/drainage easements and two water quality basins along with internal streets.

Zoning: Per the City of Menifee Land Use Map, the subject site is shown as

2.1-5.0 R which is residential land use with between 2. 1 and 5.0 dwelling units per acre. Per the City of Menifee Zoning Map, the subject property is shown as LDR -2 which is low density residential with a minimum lot size of 7,200 square feet.

Entitlements: The subject property is covered by Tract Map No. 310 98 which recorded March 26, 2020 and subdivides the site into 258 single- family detached lots with a minimum lot size of 7,200 square feet along with four open space lots which bisect the property in an “L” shape (open space/trails/drainage easement), two water quality basin parcels and a 4.87- acre park/detention basin site which is under construction. The 258 lots on the 86.03 gross acres equates to a density of 2.99 dwelling units per acre which is within the allowed density per the zoning and land use. A copy of Tract Map No. 31098 is located within the Addenda of this report.

Topography: The original topography was generally level at street grade of surrounding streets (Menifee, Rouse and Palomar Roads). After grading, the lots are at street level of the surrounding and internal streets. The lands have been graded and developed into single- family detached lots. Drainage is within an engineered street drainage system with three detention/water quality basins onsite, one adjoining the park site.

Soils Condition: We have reviewed an updated Geotechnical Report prepared by Alta California Geotechnical Inc. and dated August 20, 2018. The report concludes that the proposed development is feasible from a geotechnical standpoint, assuming all recommendations presented in the report are adhered to during construction. It is an assumption of this report that the soils are adequate to support the highest and best use conclusion and that all recommendations made within the soil’s reports were adhered to during construction. This is supported by existing development on the subject lands.

Seismic
Conditions: Per the USGS Geologic Hazards Science Center there are no active major earthquake faults within the City of Menifee with the nearest major faults being the Lake Elsinore Fault, over ten miles to the west Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 180
Menifee Mayor and City Council
January 18, 2023
Page
909 of 1063

Fire Hazard Map: Per the CalFire Fire Hazard Security Zone Viewer the subject site is not located within a Moderate, High or Very High Fire Hazard Area.

Environmental
Concerns: We have not received an environmental report to review. The builder and/or their representatives have stated (and this appraisal assumes) that there are no environmental issues that would slow or thwart development of the site. This is supported by existing development on the subject lands which were overseen by City inspectors.

Easements/
Encumbrances: We have reviewed a Preliminary Title Report on Tract Map No. 31098 prepared by Cal Atlantic Title and dated August 21, 2020 as Order No. 192002- 1631098. The report is summarized below and had the following exceptions:

Item Nos. 1 – 10 refer to property taxes and CFD 2017- 1 (maintenance serviced City of Menifee). Item No. 11 refers to water rights. Item No. 12 refers to the City of Menifee CFD No. 2020- 1 (subject CFD). Item Nos. 13, 15, 16, 17, 19, 20, 21, 25, 26, 28, 29, 33 and 34-38 refer to public utility easements. Item No. 14 refers to CC & Rs recorded on the site in 1929. Item No. 18 states the property is within the I -215 Corridor Redevelopment Project Area.

Item Nos. 22 and 27 refer to the drainage and trail easements on Lots 259-262. Item No. 23 is a dedication of Lot 263 for public park and detention basin purposes. Item No. 24 refers to the dedication of Lots 264 and 265 for water quality basins. Item No. 30 is in regards to an agreement that drainage within the site will not harm any downstream areas. Item No. 31 pertains to the Environmental Constraint Sheet of Tract Map 31098. Item No. 32 refers to CC & Rs for Remington Place. Item Nos. 39 and 40 refer to solar CC & Rs and easements. Item No. 41 pertains to the Builder’s Notice of Election of Handling any construction claims. Item No. 42 states that no known matters were deleted from the report which were otherwise appropriate.

It is an assumption of this report that the subject property is free and clear of any liens and/or encumbrances with the exception of Menifee CFD No. 2020-1 and the other aforementioned special assessments.

Utilities: All normal utilities serve the subject site by the following companies:
• Electrical: Southern California Edison Company
• Natural Gas: The Gas Company
• Sewer/Water: Eastern Municipal Water District
• Schools: Romoland School District /
Perris Union High School District

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 181
Menifee Mayor and City Council
January 18, 2023
Page
910 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 28
Streets/Access: Access to the subject is via I-15 to I-215 to McCall Road, east about two miles to Menifee Road and north 0.5 mile to Rouse Road.

I-215 is a major Southern California Freeway beginning at the I-15 in Murrieta in Southern Riversi de County and providing access north through Riverside and into San Bernardino where it combines with I- 15 once again.

McCall Road is an arterial through the northern portion of the City of Menifee with on/off ramps to I -215. West of the freeway McCall currently terminates at Valley Boulevard about 1.5 miles from I -215.

East of the freeway McCall Boulevard provides access to Heritage Lake, a master planned community and currently terminates at Briggs Road, about three miles east of the freeway.

I-15 is a major north/south freeway, which provides access to both international borders with Mexico and Canada.

Menifee Road is a north/south access road through Eastern Menifee terminating at Nuevo Road about five miles north of the subject and becoming Whitewood Road in Murrieta about six miles south of the subject.

Internal streets within Remington Place include Horsetail Circle, Endion Court, Outlaw Way, Hideout Court, Lookout Circle, Heritage Lake Drive, Old Minor Circle, Cattleman Circle, Junipero Road, Corral Court, Buckaroo Circle, Comrade Circle, Galloping Way, Stirrup Circle, Copper River Road, Lasso Way, Settlement Street and Great Plains Court.

Current Condition: The subject property has been developed into 258 single- family detached lots with a minimum lot size of 7,200 square feet. The lots are in a physically finished condition with streets complete and utilities stubbed to each lot. Two hundred thirty-six of the completed homes have closed to individuals and an additional 21 are over 95 percent complete with the final home under construction.

Remaining
Costs: The subject property is in a physically finished lot condition with estimated remaining hard costs for land development including soft costs, erosion control, wet and dry utilities and street final cap of $450,000. In addition, there are an estimated $70,000 in final EMWD fees that are anticipated to be reimbursed through Menifee CFD No. 2020-1. As we are assuming the bonds have been funded and accrued to the property, the remaining fees for the subject property are zero. The remaining hard costs are associated with all of the builder-owned property or 22 lots ( 21 homes over 95 percent complete and one home under construction) suggesting an average amount of $20,454.55 per lot in remaining hard costs for each of the Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 182
Menifee Mayor and City Council
January 18, 2023
Page
911 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 29
builder-owned parcels. These costs will be taken into consideration in the valuation section later within this report.

HOA Amounts: There is no homeowner’s association on the subject property.

Improvement
Description: Remington Place by Lenn ar includes two neighborhoods known as Trailhead and Westward. Trailhead includes five floor plans, all one- story homes ranging in size from 1,769 to 2,767 square feet.

Westward has four floorplans, one one- story and three two- story homes ranging in size fr om 2,590 to 4,134 square feet. Both Westward and Trailhead have the same Plan 4. All floorplans offer attached two or three- car garages, concrete tile roofs, roll -up insulated garage doors, gourmet kitchens with granite or smooth countertops, interior laundry rooms and primary suites with a soaking tub. Interiors include raised panel interior doors, bullnose corners and tile at entry. Homes include a R ing alarm system and doorbell and a smart-lock, kitchen islands open to great rooms, stainless steel GE appliances, tankless water heater, LED lighting and s olar. Two hundred thirty -six of the 258 proposed homes have closed to individual homebuyers with closing dates between January 2021 and November 10, 202 2. Actual sales prices (including premium, upgrades, options and incentives) within Remington Place ranged from $433,400 to $856 ,415. There are an additional 22 homes in escrow which are due to close upon completion. Base pricing at project opening in August 2020 ranged from $424, 900 to $571,400 with final base pricing from $472,900 to $679,050 suggesting appreciation between 11.3 and 22.1 percent. It is interesting to note that base pricing in September 2021 ranged from $557,900 to $806,900 or 17 to 19 percent higher than the final base pricing. Our search of the MLS revealed no closed resales but one current resale listing within Remington Place. Our physical search noted all homes appeared to be in excellent condition. The plans are detailed on the following page.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 183
Menifee Mayor and City Council
January 18, 2023
Page
912 of 1063

*One of each of these plans is a model home. In addition to the above, the final home is under construction. NG stands for NextGen, representing a floorplan that features a first -floor suite with separate entrance and living area. There is one final home under construction which is not shown in the table above that is owned by Lennar.

Remington Place by Lennar

Plan

Bd/Ba
Floors/
Parking

Sq. Ft.

Ind.

Owned
Bldr.

Owned
Trailhead
1 4 / 2 1 / 2 1,769 29 0
2 3 / 2 1 / 2 1,912 28 1*
3 4 / 2 1 / 2 2,131 29 1*
4 5 / 3.5 1 / 2 2,767 27 2*
5 4 / 2 1 / 2 2,051 8 0
Subtotal Trailhead 121 4
Westward
1 4 / 3 2 / 2 2,590 33 5
2 5 / 3 2 / 3 3,423 32 6*
3 (NG) 7 / 4.5 2 / 3 4,134 30 6*
4 5 / 3.5 1 / 2 2,767 20 0
Subtotal Westward 115 17
Total Remington Place 236 21
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 184
Menifee Mayor and City Council
January 18, 2023
Page
913 of 1063

RIVERSIDE COUNTY HOUSING MARKET

In analyzing the County’s housing market, population growth and economic conditions need to first be considered.

Population
The County population grew at a 0.5 percent increase between January 2021 and January 2022 (per the Department of Finance). This compares to an average annual growth rate over the past ten years of about 0.9 percent, and an average annual growth rate of approximately 2.5 percent for the previous eighteen-year period. The slowdown in population growth is similar to other Southern California counties during this time period, and is thought to be due to the Great Recession and the disruption from COVID.

Predictions are for the County to grow at an average annual rate of 1. 5 percent over the next eight years. This equates to an increase of approximately 36,000 residents per year, suggesting the need for about 10,000 homes per year within the County. The COVID influence is still unknown on the County’s population growth. New home sales in most cities in the County in 2020 and 2021 were higher than the coastal communities due to affordability, the work from home factor, and the fact that millennials are finally entering the housing market. These factors may increase actual County population growth in 2022.

Economic Conditions
Over the past twenty-five years the Inland Empire has seen various cycles in the housing market. The Great Recession impacted the Inland Empire significantly and resulted in a longer recovery period than that of other Southern California regions. The rise and then fall of housing prices in the Inland Empire between 2004 and 2009 was considerably steeper than almost anywhere in the State. Unfortunately, this meant that the people who bought near the peak of the market l ikely faced significant negative equity. After essentially remaining flat for a few years, housing prices began to increase in late 2012 through January 2020. Once the COVID pandemic hit in March 2020, the economy entered what is now known as the COVID Recession. The housing market slowed down significantly early on, but by May 2020, new homes were going under contract and selling at well above average absorption rates from May 2020 through Spring of 2022 in the Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 185
Menifee Mayor and City Council
January 18, 2023
Page
914 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 32
region. Recently, the new home market has begun to see a slowdown in absorption rates due to the increasing interest rates, the high prices of homes, and the high rate of inflation which is shaking consumer confidence.

Economic growth in the Inland Empire was strong generally between 20 15 (after the Great Recession), and until the economic shutdown due to COVID. The second half of 2020 and all of 2021 saw economic growth, however the first two quarters of 2022 saw GDP shrinking (negative 1.6 in Q1 and negative 0.6 in Q2) and, while the third quarter has seen growth, it is minimal at 2.6 percent. The most recent unemployment rate for the County is 4.0 percent (per the September 2022 EDD report), similar to the County’s pre- COVID unemployment rate in February 2020 of 4.0 percent.

The housing market pl ayed a large role in the past two recessions . In the Great Recession, due to increased interest rates and rising home prices between June 2004 and mid-2006, the market reaction was to create non-conventional financing alternatives, such as sub- prime and no n-conventional mortgages , to artificially maintain the boom housing market of 2004 and 2005. By 2007, the housing market saw a shake- up due to the problems in the sub- prime and non-conventional mortgage markets, which played a role in the 2008 upheaval of Wall Street and contributed significantly to the U.S. economic downturn. Due to stricter income verification on new loans and the lack of available credit, coupled with job losses and declining home prices, sales of new homes slowed for the next few years and essentially remained flat until mid- 2012 when home pric es began a steady climb.

During the COVID recession, new home sales were one of the brightest spots in both the local and national economies. While new home sales slowed in March and April 2020 due to the COVID pandemic, prices did not appear to change i n the County. Some builders increased concessions in March 2020, but by May 2020 concessions were back to where they were prior to COVID, and prices increased significantly until recently. Per the Zonda National Economic and Housing Market Update (September 20, 2022), during their most recent survey of over 300 homebuilders nationwide, 87 percent of the builders stated they plan to slow housing starts or at least watch this month to asses future starts. The rising Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 186
Menifee Mayor and City Council
January 18, 2023
Page
915 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 33
interest rates alone did not seem to slow s ales in Spring 2022. However, a combination of increasing home prices and falling consumer confidence, added to the significant interest rate increases appears to have slowed home sales. With the recent higher interest rates and increased home prices, the average monthly mortgage payment is up over 50 percent year -over-year. It should be noted that current sales rates are being compared to 2021, which was a hugely successful year for the housing market. To put this in perspective, when comparing year to date average new home sales from October 2021 to October 2022, average sales numbers in the Inland Empire are down 23 percent (per the Ryness Report dated October 23, 2022); however, when comparing year to date average new home sales from October 2019 (prior to the pandemic) to October 2022, sales are up five percent.

Per the Zonda survey, as of mid-September 2022, over 50 percent of the 300 new home builders in the Nation surveyed were stating demand has slowed and is causing concern.

Over 75 percent of builders are increasing incentives (typically closing costs and rate buy- downs, however some incentives tied to options and upgrades), while almost 30 percent are reporting dropping prices. The builders’ largest concerns relate to: (1) increasing interest rates, (2) consumer confidence, (3) inflation, (4) new home affordability, (5) economic uncertainty, (6) land prices, (7) materials cost, and (8) materials availability.

The last few months have seen a slowdown in both traffic and absorption due to the high inflation rates and resulting interest rate hikes.

Home loan mortgage rates have been and are still playing a huge part in the housing market. The Board held mortgage rates at all -time lows after the Great Recession and again after the COVID Recession in an attempt to assist the housing market’s recovery.

Low rates helped home sales during this time. However, first-time buyers are now having a hard time entering the housing market due to rising prices and rising interest rates. Per FRED, the average 30-year fixed mortgage has gone from 2.88 percent in September of 2021 to 7.08 percent as of November 10, 2022. Mortgage applications had been spiking in late 2020 and 2021 due to the low rates, and the fear that they were going to start ticking up, which we are now seeing occur in real time. In March 2022, the Federal Reserve Board increased the rate 0.25 percent, followed by a 0.50 percent increase in Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 187
Menifee Mayor and City Council
January 18, 2023
Page
916 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 34
May 2022 and a historical 0.75 percent increase in each of June, July, September, and November 2022. The Board has recently stated they anticipate an additional increase in December. The Federal Reserve Rate increases are supposed to help slow the high inflation rate in the Nation.

Residential Land Development
While there had been little land development going on in most of the Inland Empire during the Great Recession years 2008-2011, the second half of 2012 saw a resurgence in the more coveted areas of the Inland Empire. The increase in housing prices since 2012 combined with the limited avail ability of supply made land development feasible once again for homebuilders. It is thought that the increase in regulations, which has significantly increased the timeline for processing entitlements, limited the master developers’ further entitlement of developable land in California. While prior to the recession it was not unusual to see numerous large master-planned communities selling lots to builders, there are fewer currently available in the Inland Empire. The majority of land sales over the past few years include individual tracts sold by a master developer within a master plan, single tracts of land with maps ready to record, or a public builder buying a larger piece of land, but developing the land for its own use (such as Banner Park by Pulte, Shadow Ridge by KB Home, and Sumac Ridge by Meritage Homes, all in Menifee).

Land sales slowly grew from 2012 up to a peak in 2017, with 2018 and 2019 showing lower land transactions. Once home sales exploded in May 2020, residential land sales followed with a significant number of residential land sales to builders in the second half of 2020 and throughout 2021. The beginning of 2022 continued with strong residential land sales until May when sales began to fall sharply . According to Zonda’s survey of builders regarding residential land purchases, as of September 2022 only six percent of the builders surveyed are “full steam ahead” with 57 percent “cautiously moving forward;” 12 percent “bidding lower on land” and 24 percent “pausing transactions.” In addit ion, many are delaying take-downs whenever possible. Currently there is a disconnect in the seller’s expectations as they are still hoping for March 2022 land prices, however builders have seen new home prices dropping from 5 -15 percent in the Inland Empir e. As new Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 188
Menifee Mayor and City Council
January 18, 2023
Page
917 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 35
home pricing drops, the construction costs do not, thus the majority of the decrease typically falls to the land prices.

New Home Sales and Pricing
We have researched new single- family homes within the subject’s market in order to reflect residential trends. It should be noted these sales numbers and prices pertain to new home sales while later in this section we discuss existing home sales. In reviewing new home sales in the Inland Empire market area, per the October 23, 2022 Ryness Report, the year-to-date average sales rate (3.6 sales per month) is approximately 23 percent lower than the same time period of the previous year (4.7 sales per month). In the first quarter of the year, the average year to date sales rates for 2022 were higher than those of 2021, however it appears new home sales rates started to level off in late Spring 2022, likely due to the increase in mortgage interest rates. As rates go down, purchasing power becomes larger, which gives new-home buying a boost. However, the flip side is that as interest rates rise, purchasing power becomes lower and therefore fewer people purchase new homes. Along with home sales comes a demand for appliances, furniture, building materials and services such as insurance, mortgage services, inspe ctions, interior designers, and landscapers, all contributing to the area economy.

When comparing the October 23, 2022 Inland Empire Ryness Report to one year prior, there are 26 additional projects (197 in October 2021 and 223 in October 2022) and sales are about 23 percent lower year -to-date than the previous year. Moreover , when reviewing the current week average sales rate compared to the average weekly sales rate of one year ago, sales are down 66 percent (from 4.4 sales per month average during the third week in October last year to 1.5 average sales per month for the week ending October 23, 2022). This does not appear to be due to limited inventory as there are additional projects, but rather because of an actual slowdown in sales activity likely due to the increase in interest rates.

New single -family home prices (combines both attached and detached) in the Inland Empire has also seen changes. The median new home price in the Inland Empire changed from the peak value of $437,200 in the third quarter of 2006 to $268,155 in early 2009 (decrease of 39 percent) while the current Inland Empire median new home price Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 189
Menifee Mayor and City Council
January 18, 2023
Page
918 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 36
is a record high of $646,000 per Zonda’s latest market report (Riverside-San Bernardino- Ontario, CA CBSA November 2022) . This reflects an increase of over 140 percent from the bottom of the cycle and an increase of nearly 48 percent over its previous peak, and an increase of 17 percent year over year . New home sale prices fluctuate based on the land value and competition m ore than on the cost of building the home. While finishes and sizes of homes can change, the basic costs on a per square foot basis typically do not fluctuate as much as land values, however there have been inflationary increases in construction costs adding to this increase.

Within our search for the most comparable actively selling new home communities, we searched the subject’s city of Menifee as well as neighboring region of Winchester.

Because Remington Place is located so close to the northern boundary of the City of Menifee, some of the new home neighborhood in neighboring communities are more comparable to the subject than others located within the city limits. The Menifee/Winchester/Homeland area is currently home to many actively selling new home communities, thus, we focused on those with the most similar product and that were nearest in proximity to the subject. Our search for similar new home projects to the subject area resulted in eleven new home projects (including the subject’s two product lines) with base pricing ranging from $4 72,900 to $722,970, but the majority of base pricing in the $500,000 to $600,000 range. The subject’s most recent base pricing falls within the comparables price range, from $472,900 to $679,050.

Existing Homes Sales and Pricing

While the previous section looked at new home sales and pricing, this section refers to existing homes in Riverside County. According to the California Association of Realtors’ most recent data, within overall Southern California, the median price paid for an existing single-family home in September 2022 ($783,380) reflects a decrease of 1.5 percent from the previous month, but up 3.8 percent year-over-year from $755,000 in September 2021.

Existing home sales in Southern California overall were down 32.6 percent year-over- year as of September 2022. The overall Southern California numbers compare to Riverside County with $600 ,000 as the median price paid for an existing home in the County in September 2022, down 3.2 percent since August 2022, and up 5.3 percent on a year-over-year basis ($570,000). Sales of existing homes in the County were down 31.0 Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 190
Menifee Mayor and City Council
January 18, 2023
Page
919 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 37
percent year-over-year due to higher mortgage rates and higher home prices. Below is a table showing the sales and prices for the Southern California area by County per the California Association of Realtors.

Southern California Existing Home Sales
County
September
2022
August
2022
September
2021
Price
MTM %
Change
Price YTY
% Change
Sales YTY
% Change
Los Angeles $891,770 $854,960 $886,050 4.3% 0.6% -31.7% Orange $1,200,000 $1,200,000 $1,100,000 0.0% 9.1% -30.9% Riverside $600,000 $620,000 $570,000 -3.2% 5.3% -31.0%
San Bernardino $480,000 $472,750 $437,000 1.5% 9.8% -37.2% San Diego $899,000 $885,000 $850,000 1.6% 5.8% -33.2%
Ventura $850,000 $884,000 $815,000 -3.8% 4.3% -36.0%
Southern Calif. $783,380 $795,000 $755,000 -1.5% 3.8% -32.6% Source: California Association of Realtors

Based on September 2022 median existing homes prices, in comparison to the majority of the surrounding counties, Riverside County has a definite price advantage. The “Riverside County Advantage” (price difference between Riverside and surrounding counties) is $291,770 as compared to Los Angeles County, $250,000 as compared to Ventura County, $299,000 as compared to San Diego County and $600,000 as compared to Orange County. That is, in September 2022, the median priced home in Riverside County was $600,000 less, or one- half of the median priced home in Orange County ($1,200,000). However, San Bernardino County has a $120,000 price advantage over Riverside County. Typically, as the price advantage widens, homebuyers are more open to commuting to further out areas. With the current work -from-home concept, the suburban areas have seen more growth which put pressure on home prices in the Inland Empire. It’s important to note that June of 2022 was the first month where the majority of Southern California counties showed median price decreases from the previous month.

Most counties were seeing substantial month -to-month median price increases over the past two years, and the widespread decrease appears to be a sign that the market has turned and the pricing run up has come to an end.

In a separate attempt to capture the neighborhood specific price changes, the resale activity of existing homes in the subject area (per Redfin.com’s Housing Market Trends) has been reviewed. The number of sales and sale prices of existing homes within market areas in the immediate area of the subject are shown in the table on the following page.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 191
Menifee Mayor and City Council
January 18, 2023
Page
920 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 38
Community
Name
Border
To
Subject
Sales of
Homes
Sept. 2022
Sales %
Change
from
Sept. 2021
Sept. 2022
Price
Median
Price %
Change from
Sept. 2021
Sept.
2022 PSF
Median
Menifee (entire City) Subject 173 -17.6% $562,000 13.1% $264 Heritage Lake Adjacent East 28 -37.8% $630,000 8.6% $242 Sun City Southwest 58 -9.3% $403,000 11.8% $268
Romoland North 3 N/A $550,000 6.8% $318
Homeland Northeast 3 0.0% $470,000 13.3% $297
Winchester East 27 -25.0% $585,000 -1.2% $270
French Valley Southeast 43 -8.5% $653,000 8.8% $272
Murrieta South 122 -47.9% $625,000 7.8% $302
Source: Redfin.com Housing Market Trends September 2022

The median home price of a detached resale home in the subject’s immediate market area is $562,000, which is mid-way in the range of average resale detached home prices in the subject’s surrounding area. The above price fluctuations from year-to-year relate to the California Association of Realtors overall Riverside County detached home resale price increase of 5.3 percent year-over-year from September 2021 to September 2022.

It should be noted that when reviewing the month-over-month statistics, prices have been decreasing.

Remington Sales, Pricing and Competition
Remington Place opened for sale in August 2020 with opening base pricing ranging from $424,900 to $571,400. The most recent base pricing at Remington ranged from $472,900 to $679,050 which suggests appreciation from 11.3 to 22.1 percent in total over the past two years, depending on floorplan. However, base pricing as of September 2021 ranged from $557,900 to $806,900, resulting in appreciation the first year in the 31 to 41 percent range following by depreciation since then in the 18 to19 percent range. Actual closed prices, including options, upgrades and premiums, have ranged from $433 ,400 to $856,415. With in the subject, Lennar has closed 236 homes to individuals between January 4, 2021 and November 10, 2022, with the final 22 homes currently in escrow.

Sales began in August 2020 with the final sale occurring in October 2022. The total of 258 sales equates to an average overall absorption rate of about ten homes per month.

When looking at each product line individually, the absorption is 4.8 for Westward and 5.5 for Trailhead. These are both considered to be good absorption rates for the subject marketplace, and slightly stronger than the Inland Empire’s overall average sales rate during the same time period. According to the Ryness Report dated October 23 , 2022, Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 192
Menifee Mayor and City Council
January 18, 2023
Page
921 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 39
there are currently 49 new home projects in the South Riverside submarket which includes the communities of Winchester, Menifee, Wildomar, Lake Elsinore and the French Valley. The 49 projects include 27 projects within Menifee. The average absorption rate within the 49 South Riverside communities’ year to date per the October 23, 2022 Ryness Report is 3.1 sales per month. The subject sales rates in the 4.8 to 5.5 sales per month range compares favorably to the overall average in the area.

Summary
Riverside County had seen substantial increases in pricing since 2012 with most areas, including the subject, showing astronomical increases from mid-2020 through early 2022.

While existing home sales were originally down when COVID began in spring/early summer 2020, new home sales subsequently shot up due to the existing home market supply being constrained and interest rates hitting all -time lows. The latest statistics indicated a slowdown in sales as interest rates have risen substantially. The subject community has been performing at or above the Inland Empire average, resulting in strong sales rates and price increases through Spring 2022, followed by a slowing of sales and decreases. However, new homes are still selling. The South Riverside submarket is generally performing above market, resulting in strong sales rates within the comparable projects in the area. The subject’s pricing and historical average absorption rate are in- line these comparable communities. The Menifee area saw an increase in pricing consistent with most of Southern California throughout 2020 and 2021, and appeared to be continuing in the beginning of 2022. The past few months have seen sales slow and pricing beginning to soften. Despite uncertainty hitting the market due to rising interest rates and inflation, most observers agree that the Riverside County housing market is healthy and population growth is still estimated to occur in the County. It is believed that as the population continues to increase, housing growth will also continue, despite a slowdown starting in the near term.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 193
Menifee Mayor and City Council
January 18, 2023
Page
922 of 1063

HIGHEST AND BEST USE ANALYSIS

The highest and best use is a basic concept in real estate valuation due to the fact that it represents the underlying premise (i.e., land use) upon which t he estimate of value is based. In this report, the highest and best use is defined as:
"the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value”
4 Proper application of this analysis requires the subject properties to first be considered “As If Vacant” in order to identify the “ideal” improvements in terms of use, size and timing of development. The existing improvements (if any) are then compared to the “ideal” improvements to determine if the use should be continued, altered or demolished preparatory to redevelopment of the site with a more productive or ideal use.

“As If Vacant”
In the following analysis, we have considered the sites probable uses, or those uses which are physically possible; the legality of use, or those uses which are allowed by zoning or deed restrictions; the financially feasible uses, or those uses which generate a positive return on investment; and the maximally productive uses, or those probable permissible uses which combine to give the owner of the land the highest net return on value in the foreseeable future.

Physically Possible Uses
The subject property consists of 86.03 gross acres in an irregular shaped parcel at the southwest corner of Rouse and Menifee Roads. The site has good access from I-215 via McCall Boulevard. The site was generally level at street grade of both Rouse and Menifee Roads which are both paved. The site has been graded and developed into 258 generally level finished lots with internal streets complete with all utilities stubbed to each lot. The property is surrounded by new homes under development, existing homes, rural housing and vacant lands. Boulder Ridge Elementary School is located near the southwest corner of the site. We have reviewed a geotechnical report which concluded development of the

4 The Appraisal of Real Estate, 11th Edition
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 194
Menifee Mayor and City Council
January 18, 2023
Page
923 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 41
site for residential use was feasible from a geotechnical standpoint if all recommendations were adhered to. We have not received any environmental reports for our review. It is an assumption of this report that the soils are adequate to support the highest and best use conclusion and that there are no environmental iss ues which would slow or thwart development of the site. This is evidenced by City approvals along with City inspectors on site during construction. There is a 4.97 -acre open space/trail/drainage easement which bisects the subject site. Drainage appears to be utilizing this easement/channel with three detention basins adjoining the park/trail. An engineered drainage system appears to have been designed to alleviate any potential flooding problems and to control project water runoff. All standard utilities serve the subject property. The site has good access via I -215 to McCall Boulevard, east to Menifee Road and north to the subject property. There is currently neighborhood shopping and major shopping centers within two to three miles of the subject site. A neighborhood center is planned adjacent to the subject site to the south at the northwest corner of McCall Boulevard and Menifee Road.

Based on the physical analysis, the size, access and topography make the subject property physically suited for numerous types of development; however, the grading and development that has occurred on the site along with the surrounding uses, suggests single-family residential use.

Legality of Use
The subject property is located within the City of Menifee, the entity responsible for land use and zoning regulation. Per the City General Plan, the property is shown as 2.1- 5.0 R which stands for residential land use with a density of 2.1 to 5.0 dwelling units per acre.

Per the current Zoning Map, the subject property is shown as LDR-2 which stands for low density residential with a minimum square foot lot of 7,200 square feet. Recorded Tract Map No. 31098 subdivides the subject 86.03 gross acres into 258 single- family lots with a minimum lot size of 7,200 square feet. This equates to a density of 2.99 dwelling units per acre which is within the allowed density range. The approved mapping is also consistent with the current zoning on the property. The open space/trail/drainage easement that bisects the site has been incorporat ed into the neighborhood design and does not detrimentally affect the land use on the property. Based on the legality of use analysis, the type of development for which the subject properties can be utilized is Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 195
Menifee Mayor and City Council
January 18, 2023
Page
924 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 42
narrowed to residential use. This is consistent with the findings of the physically possible uses.

Feasibility of Development
The third and fourth considerations in the highest and best use analysis are economic in nature, i.e., the use that can be expected to be most profitable. As discussed under the Riverside County Housing Market section earlier within this report, the market has shown strong increases in both sales and pricing in the past year, even with the COVID pandemic ongoing. Within Menifee CFD No. 2020-1, out of 258 proposed houses, there have been 258 home sales to date including 236 home closings. All structures appe ar to be in excellent condition with no physical depreciation apparent. Within the new home market in Menifee, we found nine additional projects to be comparable to the subject properties.

Homebuilding had not been able to keep up with the demand during CO VID with low interest rates, millennials joining the home buying market and the work from home factor all adding to the demand. The Menifee housing market is priced slightly higher when compared to the nearby cities of Sun City and Lake Elsinore, however lower than Murrieta and Temecula (adjoining north San Diego County). Population growth is still occurring in the area and will continue to create the need for housing.

Based on the above analysis, the highest and best use for the subject property appear s to be for single-family detached residential development at the right price points.

Maximum Productivity
Based on the market activity of residential lands in the immediate area, we have concluded there is a need/demand for residential lands.

Highest and Best Use Conclusion – “As If Vacant”
The final determinant of highest and best use, as vacant, is the interaction of the previously discussed factors (i.e., physical, legal, financial feasibility and maximum productivity considerations). Based upon the foregoing analysis, it is our opinion that the highest and best use for the subject property “As if Vacant” is for residential development.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 196
Menifee Mayor and City Council
January 18, 2023
Page
925 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 43
Highest and Best Use – “As Improved”
The subject property consists of the community known as Remington Place which has two neighborhoods known as Trailhead at Remington Place and Westward at Remington Place, both being built out by Lennar. Remington Place opened for sale in August 2020.

Trailhead has sold all 126 of its homes and closed 121 of those homes to date suggesting an average sales rate of 5.5 homes per month. Westward has sold also sold all 132 of its homes and closed 11 5 of those homes to date suggesting an average sales rate of 4.8 homes per month. There are 49 actively marketing new home communities in the subject’s South Riverside submarket that have a year-to-date average absorption rate of

3.1 sales per month (according to the Ryness Report dated October 23, 2022). The subject properties have a higher than the average absorption of the 49 projects within their submarket. It appears that both Trailhead and Westward have been well received and are selling at or near the correct price points for the area. Our search within the subject area found nine additional projects considered to be comparable with similar sized homes. The sales rates within these projects ranged from 1.3 to 8.9 sales per month.

Both communities within Remington Place are selling at good to very good absorption rates. Base pricing within the two communities within Remington Place have had price increases across all plans from a low of 7.2 percent to a high of 22.1 percent from Grand Opening to Sell Out. However, there was previously a much larger increase from Grand Opening pricing before the prices came back down to the most recent base prices.

The sales rate within the subject and the competitive projects in the immediate area suggest there is demand for new homes in the current market at the right price points.

All of the homes are of good design and appear t o be of good quality workmanship.

Based on Remington Place’s sales rates, it is our conclusion that the highest and best use for the subject property is for the continued use, as improved.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 197
Menifee Mayor and City Council
January 18, 2023
Page
926 of 1063

VALUATION ANALYSIS AND CONCLUSIONS

The Sales Comparison Approach will be used to value the subject property. This approach compares similar properties that have recently sold or are in escrow. In determining the value for the property, a unit of comparison needs to be addressed. For single-family detached lots, the lots are typically sold on a finished lot basis. That is, the sales price is determined by a finished lot value and then the remaining costs to develop the property to a finished lot condition are taken into account in the sales price. Therefore, in determining a current market value for the residential lands, the current condition of the lots will be considered. In the case of the existing home valuations, a single home sale is the unit of comparison. In determining the value for each existing house, a base value will be concluded for each plan which will be considered a minimum market value as most buyers typically purchase some premiums, upgrades or options which increase the price of the home.

The valuation will be presented as follows. First, a discussion of the single- family detached lot market data will be given. Each of the comparable market data (on a finished lot basis) will be detailed along with a comparison discussion of their relationship to the subject property. T he remaining construction costs and development fees will be taken into consideration. This analysis will be followed by a finished lot value conclusion for the subject property. Houses which are under construction (under 95 percent complete) will be valued on the basis of a finished lot rather than attribute value to a partially complete improvement. In the case of the completed (over 95 percent complete) builder -owned models and production units, the homes will be valued using the Sales Comparison Approach to value to conclude on a retail base value for each plan, followed by a Discounted Cash Flow (“DCF”) Analysis due to the “bulk” or single ownership. The DCF will take into account the fair market value of the completed homes (utilizing the Sales Comparison Approach), any remaining land development costs and fees, the marketing and carrying costs associated with selling off the homes, a profit due to the developer of the homes, and a discount rate reflecting both the risk associated with selling off the homes along with the time value of money during the estimated absorption period. In the case of the individually owned homes, a concluded base value will be used for each plan Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 198
Menifee Mayor and City Council
January 18, 2023
Page
927 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 45
and a mass appraisal technique will be addressed. In determining the concluded base value, new home sales in the area will be reviewed and compared with sales of the subject completed homes using standard methodology and statistical testing. In addition, any resales will be taken into consideration. All of the value conclusions will take into consideration improvements funded by the Menifee CFD No. 2020-1 Special Tax Bonds and their lien. A summary of the final value conclusions will be reported at the end of this valuation section.

Market Data Discussion – Detached Residential Lots

Remington Place consists of 236 individually owned homes, five model homes ( all in escrow), 16 production homes over 95 complete (all in escrow) and one final production home under construction (former parking lot for models) which is in escrow. All lots have a 7,200 square foot minimum lot size. The home under construction (under 95 percent complete) will be valued on the basis of a finished lot rather than attribute value to a partially completed improvement. We have searched the area and found the seven land sales summarized in the Addenda. A discussion of each in relation to the subject site is below.

Land Sale No. 1 refers to the most recent residential land transaction in the area. Pulte Group purchased the site within the master plan of S tratford Ranch in Perris, about nine miles north of the subject property The lands were unimproved with an approved final map for 90 lots with a minimum lot size of 6,000 square feet. Stratford Ranch includes 400+ acres of mixed-use land being developed by Mission Pacific who is selling off tracts to builders with Richmond American and Pulte purchasing land in the master plan along with IDI purchasing an industrial site for a logistics center. Pulte purchased the 90 lots for $4,906,130 or $54,513 per lot based on an estimated finished lot price of $225,000 assuming a similar CFD. In comparison to the subject site, this site is considered to be slightly inferior in location (Perris median price home - $504,772 - is 11 percent less than Menifee median price home - $562,490), slightly inferior in lot size (6,000 minimum lots versus the subject’s 7,200 square foot minimum) and, slightly inferior in condition. The subject lots are finished while this land was unimproved at time of sale. While finishing Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 199
Menifee Mayor and City Council
January 18, 2023
Page
928 of 1063

Land Sale No. 2 refers to the purchase of 220 single family detached lots with a minimum lot size of 6,000 square feet located about two miles southeast of the subject site at the southeast corner of La Ventana Road and Simpson Road in the Winchester area of unincorporated Riverside County. Forestar (in a related purchase to D.R. Horton) purchased the 220 lots from Rancon in April 2022 for $8,000,000 or for $36,364 per lot based on a reported finished lot cost of $213,000. The lands were essentially level, in an unimproved condition with an approved final map at time of sale. The reported finished lot price reflects a proposed CFD on the property similar to the subject’s CFD. In comparison to the subject property , this location is considered to be slightly inferior due to condition and lot size. The site is unimproved, thus there is risk associated with the development of the site. In addition, the lots are minimum 6,000 square feet compared to the subject’s 7,200 minimum square feet.

Land Sale No. 3 refers to the sale of the property known as Rockport Ranch which is located at the southwest corner of Old Newport and Briggs Road about three miles south of the subject site within the City of Menifee. Lennar purchased the 79-acre property which is entitled for 305 lots , including a mix of cluster lots and conventional single- family lots ranging from 5,000 to 6,500 square foot. The new community will be gated and include amenities of two lakes, a pool, park, social club and open space areas and will include a CFD similar to the subject property. Lennar purchased the site from the Abacherli Family for $5,500,000 which equates to $18,033 per lot based on reported finished lot prices ranging from $181,000 for the cluster lots, $205,000 for the 5,000 square foot lots, $208,000 for the 6,000 square foot lots and $213,000 for the 6,500 square foot lots. The high development costs are due to the requirement of the lakes and amenities within the project. The property sold in an unimproved condition with an approved tentative tract map. The community will have a similar CFD as the subject with similar overall tax rates.

In comparison to the subject property , this transaction is considered to be similar in location however inferior in lot size and inferior due to the raw land nature of thi s site.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 200
Menifee Mayor and City Council
January 18, 2023
Page
929 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 47
While costs are taken into account in our analysis, the risk associated with the development of the site is not.

Land Sale No. 4 refers to the purchase of the north and final phase of the Braverde master planned community in Winchester. Global Investment Pool entitled and sold the property located along the north side of Wickert Road, just west of Leon about five miles south of the subject. The lots were in a partially finished condition at time of sale.

Richmond American Homes purchased the first phase of Braverde in November 2020 for $33,334,000 or $133,336 per lot based on a reported finished lot of $185,000. They then purchased the second phase in November 2021 (Land Sale No. 4) for $41,685,876 or $159,716 per lot based on a reported finished l ot price of $215,000. It is believed the increase is due to the appreciation in the subject market between November 2020 and November 2021. Brevarde has a similar CFD to the subject property. In comparison to the subject property, these lots are considered to be slightly inferior due to the lot size (5,000 minimum square feet versus the subject’s 7,200 minimum square feet).

Land Sale No. 5 refers to the sale of 129 single family detached lots located southwest of Domenigoni Parkway and Rice Road in Winchester about 4.5 miles southeast of the subject property. D.R. Horton purchased the 6,000 square foot lots in an unimproved condition with approved mapping from SR Conestoga LLC for $5,600,000 or $42,411 per lot based on a reported finished lot price of $202,000. The property is located within a planned CFD with similar overall proposed tax rates to the subject property. D.R. Horton is planning their community known as North Sky on the site. In comparison to the subject property this location is considered to be slightly inferior as the lots are smaller (6,000 square foot compared to the subject’s 7,200 minimum square foot lots) and in condition as it is unimproved land. While costs are taken into account, there is risk associated with the grading of a site.

Land Sale No. 6 refers to the purchase of 756 lots known as Cimarron Ridge, located about 3.5 miles west of the subject property at the northwest corner of Valley Boulevard and Chambers Avenue in Menifee. The site was entitled and mass graded prior to the Great Recession then sat for many years due to both the economy and the hilly nature of Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 201
Menifee Mayor and City Council
January 18, 2023
Page
930 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 48
the site, which increased the cost of land development on the site. The recent appreciation in the marketplace made the property once again feasible to develop. Pulte Homes has purchased the 756 lots, ranging in size from 5,000 to 10,000 square feet, from Van Daele Homes. Van Daele rough graded the property prior to sale along with mapping the site.

Pulte purchased the site in July 2021 for $47,000,000 or $62,169 per lo t based on a reported finished lot price of $185,000, assuming a similar CFD to the subject. In comparison to the subject property this site is inferior in number of lots (this would be considered a bulk sale which would suggest a discount) and in condition. While finishing costs are taken into account, there is risk associated with developing raw land.

Land Sale No. 7 pertains to the May 2021 closing of 175 single family detached lots with a minimum lot size of 6,000 square feet known as Parkside, locate d northwest of Scott Road and Lindenberger Road in Menifee, about six miles south of the subject property.

Meritage Homes purchased the site in an unimproved condition with an approved tentative tract map for $7,200,000 or $41,143 per lot based on an estim ated finished lot amount of $170,000 assuming a similar CFD on the property. The site is generally level at surrounding streets; however, Lindenberger Road is an unpaved road at the site increasing the land development costs. While this transaction closed in May 2021, it was negotiated approximately two years prior. In comparison to the subject property this site is considered inferior in date of sale (negotiation) and the unpaved access and the raw land condition of the site (risk associated with the development) along with a slightly smaller minimum lot size.

The chart on the following page summarizes the considerations used in adjusting the market data to the subject lot.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 202
Menifee Mayor and City Council
January 18, 2023
Page
931 of 1063

Data
No.

Location
Date of
Sale Lot Size Finished
Lot Price Comparison to Subject
1 Perris 11/22 6,000 $225,000 Inferior – Condition, Location & Lot Size
2 Winchester 4/22 6,000 $213,000 Inferior – Condition & Lot Size 3 Menifee 12/21 Cluster –
5,500
$181,000 -
$213,000 Inferior – Condition & Lot Size
4 Winchester 10/21 5,000 –
7,000 $215,000 Slightly Inferior – Lot Size
5 Winchester 8/21 6,000 $202,000 Inferior – Condition & Lot Size 6 Menifee 7/21 5,000 –
10,000 $185,000 Inferior – No. of Lots & Condition
7 Menifee 5/21 6,000 $170,000 Inferior – Condition, Lot size and Date of Negotiation

The market data has an overall finished lot range from $170 ,000 to $225,000. Data No. 1, at the high end of the range refers to the most recent sale in an inferior location. When reviewing the sales, there is a clear appreciation shown between May 2021 and November 2022. When pairing Data Numbers 2 and 5 it suggests there was a 5 percent increase between August 2021 and April 2022. When pairing Data Nos. 3 (large lots only) and Data No. 7, it suggests there was a 25 percent increase between May 2021 and December 2021. The largest lots within Data No. 3 which sold for $213,000 finished are considered to be the most similar to the subject property, however this transaction closed in December 2021. The decrease in housing prices in the past few months due to the significant increase in interest rates is suggesting that residential land prices may decrease, however we haven’t seen that in the market data yet. While residential land transactions in the Menifee area have slowed and some stopped, we do not have evidence of a decrease in pricing at this time. The latest sale occurred in November 2022 for a property with slightly smaller l ots (6,000 sf versus the subject’s 7,200 square feet) and in an inferior location in Perris. The above market data is considered to be good.

We have concluded that the subject lots have a current market value of $220,000 for the minimum 7,200 square foot lots. As discussed under the Property Description Section, there are remaining costs associated with developing the subject property into true finished lots. These costs are estimated at $20,455 per lot. The value conclusion for the final lot within Remington Place is calculated below:

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 203
Menifee Mayor and City Council
January 18, 2023
Page
932 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 50
1 Lot x $220,000 $ 220,000
Less: Remaining Costs (20,455)
Current Value for Remaining Lot $ 199,545

Retail House Valuations

Due to the single ownership of multiple houses by Lennar including model homes and production homes over 95 percent complete, a Discounted Cash Flow (“DCF”) analysis is needed in order to arrive at a bulk value for the homes. F irst, a retail value for each plan will be concluded followed by a DCF for the builder -owned lots, which will take into account the absorption time to sell off the houses, the costs associated with selling off the homes and any remaining costs owed by the builder. The resulting revenue will be discounted using an appropriate rate to determine the builder-owned bulk value. The DCF analyses will be followed by a reporting of the concluded values for the individually owned homes using the concluded base retail value for each plan with a s eparate check of the analysis utilizing a mass appraisal technique based on actual sales prices of the homes and considering any re-sale market data.

Remington Place consists of 2 36 individually owned homes, five model homes (five in escrow), 16 production homes over 95 complete ( all in escrow), and one home under construction (in escrow). The home under construction has been valued above. The 21 builder-owned homes over 95 percent complete (including five model homes) are being addressed in this section with a separate valuation for each plan.

Below is a summary of the floor plans within both Trailhead and Westward in Remington Place. A listing of the improved residential comparable properties is located in the Addenda of this report. All of the improve d residential properties are located within Menifee. Our search of the subject property and the local Multiple Listing Service (MLS) has resulted in no closed resale and one current resale listing within Remington Place.

The plans are detailed on the following page.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 204
Menifee Mayor and City Council
January 18, 2023
Page
933 of 1063

*One of each of
these plans is a model
home. In addition to the
above, there is one home
under construction. NG
stands for NextGen,
representing a floorplan that
features a first-floor suite with
separate entrance and
living area. There is one final
home under construction
which is not shown in the
table above that is owned by
Lennar.

The most appropriate
new home comparable data for Trailhead Plan 1 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 4 / 2 1 / 2 1,769 --
1 2 3 / 2 1 / 2 1,912 $264.85
3 2 3 / 2 1 / 2 1,620 $303.70
3 3 4 / 2 1 / 2 1,846 $274.10
4 1 3 / 2 1 / 2 1,891 $271.28
7 4 4 / 2 1 / 2 1,779 $314.78
7 5 3 / 2 1 / 2 1,860 $305.37
9 1 4 / 3 1 / 2 1,898 $289.25

Plan

Bd/Ba
Floors/
Parking

Sq. Ft.

Ind.

Owned
Bldr.

Owned
Trailhead
1 4 / 2 1 / 2 1,769 29 0
2 3 / 2 1 / 2 1,912 28 1*
3 4 / 2 1 / 2 2,131 29 1*
4 5 / 3.5 1 / 2 2,767 27 2*
5 4 / 2 1 / 2 2,051 8 0
Subtotal Trailhead 121 4
Westward
1 4 / 3 2 / 2 2,590 33 5
2 5 / 3 2 / 3 3,423 32 6*
3 (NG) 7 / 4.5 2 / 3 4,134 30 6*
4 5 / 3.5 1 / 2 2,767 20 0
Subtotal Westward 115 17
Total Remington Place 236 21
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 205
Menifee Mayor and City Council
January 18, 2023
Page
934 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 52
upgrades, premiums and options along with any concessions given by the builder while the concluded value relates to a base price for the plan. All of the homes appear to be in excellent condition with no depreciation visible. The increase in base pricing from project opening followed by the decrease since May 2022 is taken into consideration in our analysis It has been concluded that Trailhead Plan 1 has a base current market value of $265.00 per square foot. This calculates as follows:

1,769 sf x $265.00 = $468,785

The most appropriate new home comparable data for Trailhead Plan 2 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 3 / 2 1 / 2 1,912 --
1 1 4 / 2 1 / 2 1,769 $267.33
3 3 4 / 2 1 / 2 1,846 $274.10
4 1 3 / 2 1 / 2 1,891 $271.28
4 2 4 / 2 1 / 2 2,035 $257.49
5 1 3 / 2 1 / 2 2,091 $247.25
6 1 3 / 2 1 / 2 2,099 $247.73
7 5 3 / 2 1 / 2 1,860 $305.37
9 1 4 / 3 1 / 2 1,898 $289.25

All new home comparables are located within Menifee. All are of similar quality, design and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $247.25 to $305.37 per square foot with generally the smaller sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Trailhead Plan 2 had a final base asking price of $264.85 per square foot. There have been 28 closings of Plan 2 with sales prices ranging from $226.67 to $303.04 per square foot. There are currently two escrows of Plan 2 with a sales price range of $268.10 to $271.93 per square foot, the higher of which represents the Trailhead Plan 2 model home. It should be noted that the reported sales prices include upgrades, premiums and options along with any concessions given by the builder while the concluded Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 206
Menifee Mayor and City Council
January 18, 2023
Page
935 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 53
value relates to a base price for the plan. All of the homes appear to be in excellent condition with no depreciation visible. The increase in base pricing from project opening followed by the decrease since May 2022 is taken into consideration in our analysis It has been concluded that Trailhead Plan 2 has a base current market value of $260 .00 per square foot. This calculates as follows:
1,912 sf x $260.00 = $497,120

The most appropriate new home comparable data for Trailhead Plan 3 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 4 / 2 1 / 2 2,131 --
1 2 3 / 2 1 / 2 1,912 $264.85
1 5 4 / 2 1 / 2 2,051 $254.95
4 2 4 / 2 1 / 2 2,035 $257.49
4 3 4 / 2 1 / 2 2,206 $238.44
5 1 3 / 2 1 / 2 2,091 $247.25
5 2 3 / 2 1 / 2 2,329 $232.28
6 1 3 / 2 1 / 2 2,099 $247.73
6 2 4 / 2 1 / 2 2,381 $225.53
10 1 3 / 2 1 / 2 2,191 $244.63

All new home comparables are located within Menifee. All are of similar quality, design and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $225.53 to $264.85 per square foot with the smallest sized home at the high-end of the price per square foot range. Trailhead Plan 3 had a final base asking price of $246.08 per square foot. There have been 29 closings of Plan 3 with sales prices ranging from $214.55 to $284.06 per square foot. There is currently one escrow with a sales price of $259.69 per square foot, which represents the Trailhead Plan 3 model home. It should be noted that the reported sales prices include upgrades, premiums and options along with any concessions given by the builder while the concluded value relates to a base price for the plan. All of the homes appear to be in excellent condition with no depreciation visible. The increase in base pricing from project opening followed by the decrease since May 2022 is taken into consideration in our analysis. It has been concluded that Trailhead Plan 3 has a base current market value of $245.00 per square foot. This calculates as follows:

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 207
Menifee Mayor and City Council
January 18, 2023
Page
936 of 1063

2,131 sf x $245.00 = $522,095

The most appropriate new home comparable data for Trailhead Plan 4 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 4 5 / 3.5 1 / 2 2,767 --
2 1 4 / 3 2 / 2 2,590 $196.23
2 4 5 / 3.5 1 / 2 2,767* $216.26
5 3 4 / 2 1 / 2 2,628 $213.47
5 4 4 / 2.5 1 / 2 2,913 $201.16
6 3 4 / 2 1 / 2 2,621 $209.84
6 4 4 / 2.5 1 / 2 2,906 $198.90
8 2 4 / 3 2 / 2 2,673 $191.62
9 5 4 / 3.5 2 / 2 2,617 $233.47
10 3 3 / 2.5 1 / 3 2,462 $230.70
*Trailhead Plan 4 is the same plan as Westward Plan 4.

All new home comparables are located within Menifee. All are of similar quality, design and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $191.62 to $233.47 per square foot with generally the smaller sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. Due to the limited large single-story homes, we have included a few two-story homes in this analysis. Two-story homes are generally lower on a price per square foot basis. This is typical due to the economies of scale which are obtained during construction. Trailhead Plan 4 had a final base asking price of $213.73 per square foot. There have been 2 7 closings of Plan 4 with sales prices ranging from $177.56 to $234.56 per square foot. There are currently two escrows of Plan 4 with a sales price of $224.43 per square foot (which represents the Trailhead Plan 4 model home) and one at $234.03 per square foot. It should be noted that the reported sales prices include upgrades, premiums and options along with any concessions given by the builder while the concluded value relates to a base price for the plan. All of the homes appear to be in excellent condition with no depreciation visible. The increase in base pricing from project opening followed by the decrease since May 2022 is taken into consideration in our analysis . It has been Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 208
Menifee Mayor and City Council
January 18, 2023
Page
937 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 55
concluded that Trailhead Plan 4 has a base current market value of $21 0.00 per square foot. This calculates as follows:

2,767 sf x $210.00 = $581,070

The most appropriate new home comparable data for Trailhead Plan 5 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 5 4 / 2 1 / 2 2,051 --
1 2 3 / 2 1 / 2 1,912 $264.85
1 3 4 / 2 1 / 2 2,131 $246.08
3 3 4 / 2 1 / 2 1,846 $274.10
4 2 4 / 2 1 / 2 2,035 $257.49
5 1 3 / 2 1 / 2 2,091 $247.25
6 1 3 / 2 1 / 2 2,099 $247.73
9 1 4 / 3 1 / 2 1,898 $289.25
10 1 3 / 2 1 / 2 2,191 $244.63

All new home comparables are located within Menifee. All are of similar quality, design and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price less concessions range from $244.63 to $289.25 per square foot with the smallest sized home at the high-end of the price per square foot range. Trailhead Plan 5 had a final base asking price of $254.95 per square foot. There have been eight closings of Plan 5 with sales prices r anging from $225.06 to $279.40 per square foot. There are currently no escrows of Plan 5. It should be noted that the reported sales prices include upgrades, premiums and options along with any concessions given by the builder while the concluded value relates to a base price for the plan. All of the homes appear to be in excellent condition with no depreciation visible. The increase in base pricing from project opening followed by the decrease since May 2022 is taken into consideration in our analysis . It has been concluded that Trailhead Plan 5 has a base current market value of $257 .00 per square foot. This calculates as follows:
2,051 sf x $257.00 = $527,107

The most appropriate new home comparable data for Westward Plan 1 are shown below.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 209
Menifee Mayor and City Council
January 18, 2023
Page
938 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 56
Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 4 / 3 2 / 2 2,590 --
1 4 5 / 3.5 1 / 2 2,767 $213.73
3 6 4 / 3 2 / 2 2,454 $222.49
4 5 4 / 2.5 2 / 2 2,544 $218.55
8 2 4 / 3 2 / 2 2,673 $191.62
9 3 4 / 3.5 2 / 2 2,435 $245.17
9 4 5 / 3 2 / 2 2,537 $235.31
9 5 4 / 3.5 2 / 2 2,617 $233.47

All new home comparables are located within Menifee. All are of similar quality, design and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $191.62 to $245.17 per square foot with generally the smaller sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Westward Plan 1 had a final base asking price of $196.23 per square foot. There have been 33 closings of Plan 1 with sales prices ranging from $190.42 to $239.77 per square foot. There are currently five escrows of Plan 1 with a sales price range of $194.03 to $207.30 per square foot. The lowest escrow is the It should be noted that the reported sales pric es include upgrades, premiums and options along with any concessions given by the builder while the concluded value relates to a base price for the plan. All of the homes appear to be in excellent condition with no depreciation visible. The increase in base pricing from project opening followed by the decrease since May 2022 is taken into consideration in our analysis. It has been concluded that Westward Plan 1 has a base current market value of $195.00 per square foot. This calculates as follows:

2,590 sf x $195.00 = $505,050

The most appropriate new home comparable data for Westward Plan 2 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 5 / 3 2 / 3 3,423 --
2 3 (NG) 6 / 4.5 2 / 3 4,134 $164.26
4 7 5 / 3 2 / 2 3,086 $199.28
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 210
Menifee Mayor and City Council
January 18, 2023
Page
939 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 57
8 3 5 / 3 2 / 3 3,010 $190.57
8 4 (NG) 6 / 4.5 2 / 3 4,134 $174.88
11 2 (NG) 5 / 3.5 2 / 3 3,047 $201.51
11 3 (NG) 5 / 3.5 2 / 3 3,237 $162.18
*(NG) stands for Next Gen – representing a floorplan with a first-floor full suite option.

All new home comparables are located within Menifee. All are of similar quality, design and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $162.18 to $201.51 per square foot with generally, the smaller sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Westward Plan 2 had a final base asking price of $179.49 per square foot. There have been 32 closings of Plan 2 with sales prices ranging from $153.64 to $207.43 per square foot. There are currently six escrows of Plan 2 with a sales price range of $172.36 to $206.75 per square foot. The escrows include the Westward Plan 2 model which is priced at $190.60 per square foot. It should be noted that the reported sales prices include upgrades, premiums and options along with any concessions given by the builder while the concluded value relates to a base price for the plan. All of the homes appear to be in excellent condition with no depreciation visible. The increase in base pricing from project opening followed by the decrease since May 2022 is taken into consideration in our analysis. It has been concluded that Westward Plan 2 has a base current market value of $172.00 per square foot. This calculates as follows:

3,423 sf x $172.00 = $588,756

The most appropriate new home comparable data for Westward Plan 3 are shown below.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 211
Menifee Mayor and City Council
January 18, 2023
Page
940 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 58
Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 6 / 4.5 2 / 3 4,134 --
2 2 5 / 3 2 / 3 3,423 $179.49
4 7 5 / 3 2 / 2 3,086 $199.28
8 3 5 / 3 2 / 3 3,010 $190.57
8 4 (NG) 6 / 4.5 2 / 3 4,134 $174.88
11 2 (NG) 5 / 3.5 2 / 3 3,047 $201.51
11 3 (NG) 5 / 3.5 2 / 3 3,237 $162.18
*(NG) stands for Next Gen – representing a floorplan with a first-floor full suite option.

The subject home is a NextGen home which includes a separate living area for another generation with its own entrance. The Westward Plan 3 is the largest home of all of the comparables. All of the new homes are located within Menifee. All are of similar quality, design and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $162.18 to $201.51 per square foot with generally the smaller sized homes at the high-end of the price per square foot range. Plan 3 had a final base asking price of $164.26 per square foot. There have been 30 closings of Plan 3 with sales prices ranging from $140.23 to $207.16 per square foot. There are currently six escrows with a sales price range of $164.07 to $186.43 per square foot with the highest priced escrow the model home. It should be noted that the reported sales prices include upgrades, premiums and options along with any concessions given by the builder while the concluded value relates to a base price for the plan. All of the homes appear to be in excellent condition with no depreciation visible. There is one Westward Plan 3 home listed for re-sale at the time of the appraisal; 27175 Endion Court is a 5 bed, 5-bathroom, 4,134 square foot NextGen home currently priced at $708,000 or $171.26 per square foot. The home appears to have been listed for sale in July of 2022 for $850,000 ($205.61 per square foot) after the buyer closed in January of 2022 for $819,000 ($198.11). It then had a $50,000 price decrease at the end of July , and a second $50,000 at the end of August. It was contingent for a short period, then continued smaller price decreases until the current price of $708,000 (as of November 8, 2022). The increase in base pricing from project opening followed by the decrease since May 2022 is taken into consideration in our analysis, as well as the current resale listing. It has been concluded that Plan 3 has a base current market value of $160.00 per square foot. This calculates as follows:

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 212
Menifee Mayor and City Council
January 18, 2023
Page
941 of 1063

The most appropriate new home comparable data for Westward Plan 4 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 4 5 / 3.5 1 / 2 2,767 --
2 1 4 / 3 2 / 2 2,590 $196.23
1 4 5 / 3.5 1 / 2 2,767* $213.73
4 6 4 / 2.5 2 / 2 2,773 $205.19
5 3 4 / 2 1 / 2 2,628 $213.47
5 4 4 / 2.5 1 / 2 2,913 $201.16
6 3 4 / 2 1 / 2 2,621 $209.84
6 4 4 / 2.5 1 / 2 2,906 $198.90
8 2 4 / 3 2 / 2 2,673 $191.62
9 5 4 / 3.5 2 / 2 2,617 $233.47
10 3 3 / 2.5 1 / 3 2,462 $230.70
*Westward Plan 4 is the same Plan as Trailhead Plan 4.

All new home comparables are located within Menifee. All are of similar quality, design and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price less concessions range from $191.62 to $233.47 per square foot with the small est sized home at the high-end of the price per square foot range. Westward Plan 4 had a final base asking price of $216.26 per square foot. There have been 20 closings of Plan 4 with sales prices ranging from $181.89 to $234.56 per square foot. There are currently no escrows of Plan 4. It should be noted that the reported sales prices include upgrades, premiums and options along with any concessions given by the builder while the concluded value relates to a base price for the plan. All of the homes appear to be in excellent condition with no depreciation visible. The increase in base pricing from project opening followed by the decrease since May 2022 is taken into consideration in our analysis . It has been concluded that Westward Plan 4 has a base current market value of $210.00 per square foot. This calculates as follows:
2,767 sf x $210.00 = $581,070

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 213
Menifee Mayor and City Council
January 18, 2023
Page
942 of 1063

Within Remington Place there are 21 builder-owned homes over 95 percent complete which includes five model homes. Per interviews with builders, upgrades and landscape/hardscape of up to $100,000 are installed in the model homes, however, the builders generally consider this a marketing cost and do not anticipate recovering this investment on a dollar-for-dollar basis. Based on actual sales information of the subject model homes and the current real estate market, a consideration of a $ 25,000 premium has been included with each of the model h omes. As concluded above, the retail base value conclusions for the builder-owned homes are calculated as follows:

Trailhead:

Plan 1 (0 x $468,785) $ 0 Plan 2 (1 x $497,120) 497,120
Plan 3 (1 x $522,095) 522,095
Plan 4 (2 x $581,070) 1,162,140
Plan 5 (0 x $527,107) 0
Westward:

Plan 1 (5 x $505,050) $ 2,525,250
Plan 2 (6 x $588,756) 3,532,536
Plan 3 (6 x $661,440) 3,968,640
Plan 4 (0 x $581,070) 0
Model Upgrades (5 x $25,000) 125,000
Retail Value $12,332,781

Absorption Period
In order to arrive at an absorption period for the 21 builder-owned homes, the absorption rate for the subject neighborhoods along with the surrounding developments has been reviewed. Remington Place opened in August 2020 and there have been 258 sales (final sale in October 2022) suggesting an average absorption of 10.75 homes per month between both projects. The sales rates per community are 5.5 within Trailhead and 4. 8 within Westward. These rates are considered to be very good. All of the 21 builder-owned homes are in escrow with closings scheduled in the next month or so as the homes are finalized.

Taking into consideration the product and concluded sales prices along with the current escrows and current market conditions, it is the appraiser’s opinion that the 21 builder- owned homes will be absorbed within a four-month period at the concluded values.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 214
Menifee Mayor and City Council
January 18, 2023
Page
943 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 61
Remaining Costs
As discussed under the property description section above, there is $20,455 per lot remaining for land development costs associated with the builder -owned property. For the 21 builder-owned homes, this equates to $429,555 ($20,455 x 21) in remaining costs.

For analysis purposes this will be spread evenly over the four-month absorption period.

Expenses
In determining an expense rate, several builders in the subject area have been interviewed as to their expenses on selling existing inventory. Expenses include marketing and general administrative costs. These costs typically range from six to ten percent depending on varying factors such as absorption period, intensity of marketing, etc. Due to possible buy- downs of interest and help with closing costs in the current market, an eight percent marketing cost is estimated along with two percent for general and administrative costs for a total of ten percent in expenses for this analysis.

Profit
Several interviews with merchant builders in the area were conducted in order to determine an appropriate profit percentage for the subject properties. In the early 2000s, developers typically attempted to achieve a 10 to 12 percent profit based on gross sales proceeds. During the Great Recession, this range was lowered considerably to six to 10 percent with some builders drastically lowering their profit potential in order to maintain their work force. As the market improves , so d oes the profits. This appears to have occurred as prices increas ed since opening; however, the market is now slowing with prices decreasing. A twelve percent profit is considered appropriate in the analysis for this project.

Discount Rate
In selecting a discount rate, the following was completed:

1. Interviews with merchant builders in the Menifee area

2. Review of current market conditions including current market rates as well as yields reflected in other markets (i.e., municipal bonds, corporate bonds, etc.)

3. The quality, construction, historical sales and product on the subject property

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 215
Menifee Mayor and City Council
January 18, 2023
Page
944 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 62
The homes within Remington Place began selling in August 2020 with the product being well received in the marketplace. Based on the sales rate within the subje ct project, the competition, the product and location, a ten percent discount rate is considered appropriate for this analysis.

Discounted Cash Flow Summary
The discounted revenue (see DCF Analyses in addenda) for the builder-owned homes is $9,001,701.

Builder Ownership Valuation
The builder-owned homes within Remington Place consists of five models along with 16 production homes over 95 percent complete and one home under construction (valued based on a finished lot) owned by Lennar. The final valuation of the Lennar owned property is:

1 Lot $ 199,545
21 Houses 9,001,701
Total Lennar Ownership $ 9,201,246

Individual Owned Homes Valuation Conclusion

There are 2 36 individually owned homes within Remington Place. Based on the concluded value for each plan, the individually owned homes are valued as:

Trailhead:

Plan 1 (29 x $468,785) $ 13,594,765 Plan 2 (28 x $497,120) 13,919,360
Plan 3 (29 x $522,095) 15,140,755
Plan 4 (27 x $581,070) 15,688,890
Plan 5 (8 x $527,107) 4,216,856
Westward:

Plan 1 (33 x $505,050) $ 16,666,650
Plan 2 (32 x $588,756) 18,840,192
Plan 3 (30 x $661,440) 19,843,200
Plan 4 (20 x $581,070) 11,621,400

Total Individual Owned $129,532,068

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 216
Menifee Mayor and City Council
January 18, 2023
Page
945 of 1063

_________________________________________________________________________________________________________ Menifee CFD No. 2020-1 (McCall Mesa) - 2023 Series Bonds | Remington Place by Lennar Kitty Siino & Associates, Inc. Page 63
In an additional review, we have reviewed the original builder sales prices for the homes within the Remington Place neighborhood. Closings for the 236 homes occurred between January 4, 2021 and November 10, 2022. The reported closing prices by the builder for the individually owned homes total $1 38,492,904. The builder’s reported prices include premiums, upgrades and purchased options as well as took into consideration the concessions given by the builder. The above valuation is for the minimum market value as it takes into consideration the base plan price only and does not take into account any options, premiums or upgrades which were purchased by the buyers. The concluded values are 6.5 percent lower than the actual sales prices. When reviewing the actual sales prices to the base prices, the actual base prices of the homes total was $134,582,732 which suggests each buyer paid an average of over $ 16,500 more per home which is lower than typical. The lower upgrade and option purchases is partially due to Lennar’s Everything’s Included sales program. Our concluded value is 3.8 percent lower than the actual base prices. This is due to the increase in pricing since opening followed by the decrease in pricing over the past six months , coupled with a possible increase in concessions to close by year -end. The builder ’s fiscal year-end is November 30, 2022 which creates incentive for them to close homes before that date. Of the 22 homes in escrow, 21 are projected to close prior to November 30 th. While all plans have had increases in their base pricing upwards of 10 percent , the trajectory of the market is currently down. It is our conclusion that the original builder sales prices further substantiate the concluded minimum market value for the individually owned homes.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 217
Menifee Mayor and City Council
January 18, 2023
Page
946 of 1063

APPRAISAL REPORT SUMMARY

The appraisal assignment was to value the subject property w hich is within the boundaries of Menifee CFD No. 2020 -1. The property is being developed into the community of Remington Place with two neighborhoods known as Trailhead and Westward, both by Lennar. Remington Place has been well received in the marketplace and both neighborhoods sold out.

Remington Place includes a total of 258 single-family proposed homes with 236 closed to individuals and the remaining 22 all in escrow. We have reviewed the builder sales and reviewed the areas Multiple Listing Service. Our search resulted in no resale homes and one current listing of a resale home within the subject property. All homes appear to be in excellent condition with no depreciation apparent. The 258 home closings occurred between January 4, 2021 and November 10, 202 2. The re are five models and 16 production homes over 95 percent complete, all in escrow and due to clos e within the next month or so. The final home (previous the model complex parking lot) is under construction and also in escrow with the closing estimated in February 2023.

The subject property was valued using the Sales Comparison Approach to value and a mass appraisal technique. A minimum value was determined for the existing homes by concluding at a base value for each plan. The valuation took into account the improvements/benefits to be funded by the both of the Menifee CFD No. 2020 -1 bond series proceeds, along with the Menifee CFD No. 2020-1 special tax lien. As a result of our investigation, the concluded market value for the subject property is:

Remington Place

Lennar Ownership (21 houses and 1 lot) $ 9,201,246 Individual Owners (236 houses) 129,532,068
Total Aggregate Value Menifee CFD No. 2020-1 $138,733,314

The above values are stated subject to the Assumptions and Limiting Conditions of this report, the Appraiser’s Certification and as of November 10, 2022.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 218
Menifee Mayor and City Council
January 18, 2023
Page
947 of 1063

The appraiser certifies that to the best of his knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased, professional analyses, opinions and conclusions.

3. The appraiser has no present or prospective interest in the property that is the subject of this report, and no personal interest or bias with respect to the parties involved.

4. The appraiser’s compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result or the occurrence of a subsequent event.

5. This appraisal was not based on a requested minimum valuation, a specific valuation or the approval of a loan.

6. The analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

7. Kitty Siino has made a personal inspection of the property that is the subject of this report.

8. Kitty Siino has performed appraisal services on the subject property in the past three years. An appraisal was completed in November with an October 8, 2021 date of value for the Menifee CFD 2020- 1 first series of bonds sold in early 2022 along with a supplement to the appraisal completed January 3, 2022 with a date of value of December 1, 2021.

9. No other appraisers have provided significant professional assistance to the persons signing this report.

10. The reported analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the requirements of the Appraisal Institute’s Code of Professional Ethics and Standards of Professional Appraisal Practice, which include the Uniform Standards of Professional Appraisal Practice.

11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

12. As of the date of this report, Kitty Siino has completed the requirements of the continuing education program of the Appraisal Institute.

Kitty S. Siino, MAI
State Certified General
Real Estate Appraiser (AG004793)
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 219
Menifee Mayor and City Council
January 18, 2023
Page
948 of 1063

ADDENDA
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 220
Menifee Mayor and City Council
January 18, 2023
Page
949 of 1063

CITY OF MENIFEE CFD NO. 2020-1

BOUNDARY MAP
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 221
Menifee Mayor and City Council
January 18, 2023
Page
950 of 1063

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 222
Menifee Mayor and City Council
January 18, 2023
Page
951 of 1063

TRACT MAP NO. 31098

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 223
Menifee Mayor and City Council
January 18, 2023
Page
952 of 1063

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 224
Menifee Mayor and City Council
January 18, 2023
Page
953 of 1063

DISCOUNTED CASH FLOW ANALYSIS

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 225
Menifee Mayor and City Council
January 18, 2023
Page
954 of 1063

City of Menifee Remington Place - Builder-Owned Houses Disc. Cash Flow Analysis

MONTH Months MONTH 1 MONTH 2 MONTH 3 MONTH 4 TOTAL
4 INCOME:

Retail Sales 12,332,781 $3,083,195 $3,083,195 $3,083,195 $3,083,195 $12,332,781

TOTAL INCOME $3,083,195 $3,083,195 $3,083,195 $3,083,195 $12,332,781

EXPENSES:

Remaining Costs ($107,388) ($107,389) ($107,389) ($107,389) ($429,555) Marketing & Carrying Expenses 10% ($308,320) ($308,320) ($308,320) ($308,320) ($1,233,278) Profit 12% ($369,983) ($369,983) ($369,983) ($369,983) ($1,479,934)

TOTAL EXPENSES ($785,691) ($785,692) ($785,692) ($785,692) ($3,142,767)

NET CASH FLOW $2,297,504 $2,297,503 $2,297,503 $2,297,503 $9,190,014 Discount Factor 10% 0.9917 0.9835 0.9754 0.9673

DISCOUNTED CASH FLOW $2,278,517 $2,259,685 $2,241,010 $2,222,489 $9,001,701

CUMULATIVE DISCOUNTED $2,278,517 $4,538,202 $6,779,211 $9,001,701 $9,001,701

CASH FLOW

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 226
Menifee Mayor and City Council
January 18, 2023
Page
955 of 1063

RESIDENTIAL LAND SALES MAP
& SUMMARY CHART
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 227
Menifee Mayor and City Council
January 18, 2023
Page
956 of 1063

Residential Land Sales Map

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 228
Menifee Mayor and City Council
January 18, 2023
Page
957 of 1063

FINISHED LOT LAND SALES SUMMARY CHART

Data
No. Location / APN / Buyer / Seller Sales #
Lots Lot Size Sales Price /
Est.

Finished Comments Date Price per Lot Lot Price
1 Stratford Ranch, Evans Road and
Ramona Expressway, Perris / 302-
150-049 / Pulte Group / Mission
Pacific
11 / 22 90 6,000 $4,906,130 $225,000
Closed with an approved
Final Map in an unimproved
condition.
$54,513
2 La Ventana, N. of Olive Avenue and
La Ventana Road, Winchester / 461-
460-008 / Forestar (D.R Horton OBS
partner) / Rancon
4 / 22 220 6,000 $8,000,000 $213,000
Closed with a recorded Final
Map in an unimproved
condition.
$36,364
3 Rockport Ranch, SWC of Briggs
Road and Old Newport Road,
Menifee / 364-190-004 / Lennar /
Abacherli Family
12 / 21 305 Cluster –
6,500
$5,500,000 / $181,000 -
$213,000
Closed in an unimproved
condition with an approved
tentative tract map.
$18,033
4 Braverde North, S of Garbani Road
and La Ventana Lane, Menifee / 466-
210-029 / Richmond American / IHP
10 / 21 261 5,000 –
7,000
$41,685,876 / $215,000
Closed with an approved
Final Map in a Finished Lot
Condition $159,716
5 Domenigoni/Rice / SW of Domenigoni
Parkway and Rice Road, Winchester /
461-383-023 / D.R. Horton / SR
Conestoga LLC
8 / 21 129 6,000 $5,600,000 / $202,000
Closed in unimproved
condition with a Recorded
final map.
$43,411
6 Cimarron Ridge, NWC of Valley
Boulevard & Chambers Avenue,
Menifee / 330-220-016 / Pulte Homes
/ Van Daele Homes
7 / 21 756 5,000 -
10,000
$47,000,000 / $185,000
Closed in rough graded
condition with an approved
final map. $62,169
7 Parkside, NW of Scott Road &
Lindenberger Road, Menifee / 372-
160-006 / Meritage Homes / KGK
Riverside Properties
5 / 21 175 6,000 -
10,000
$7,200,000 / $170,000
Closed in unimproved
condition with an approved
tentative tract map.
$41,143
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 229
Menifee Mayor and City Council
January 18, 2023
Page
958 of 1063

IMPROVED RESIDENTIAL SALES MAP
& SUMMARY CHART

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 230
Menifee Mayor and City Council
January 18, 2023
Page
959 of 1063

Improved Residential Sales Map

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 231
Menifee Mayor and City Council
January 18, 2023
Page
960 of 1063

IMPROVED RESIDENTIAL SALES SUMMARY CHART

Data
No.

Project Name
Location/Developer Plan Room
Count
Floors/
Parking Size (SF)
Lot Size or
Density /
Absorption
Base Sales
Price Price/SF
1 Trailhead at Remington Place / Menifee
Road and Rouse Road, Menifee /
Lennar
1 4 / 2 1 / 2 1,769 $472,900 $267.33
2 3 / 2 1 / 2 1,912 7,200 sf lots $506,400 $264.85
3 4 / 2 1 / 2 2,131 5.5 sales/mo $524,400 $246.08
4 5 / 3.5 1 / 2 2,767 $591,400 $213.73
5 4 / 2 1 / 2 2,051 $522,900 $254.95
2 Westward at Remington Place / Menifee
Road and Rouse Road, Menifee /
Lennar
1 4 / 3 2 / 2 2,590 $508,233 $196.23
2 5 / 3 2 / 3 3,423 7,200 sf lots $614,400 $179.49
3 (NG) 6 / 4.5 2 / 3 4,134 4.8 sales/mo $679,050 $164.26 4 5 / 3.5 1 / 2 2,767 $598,400 $216.26
3 Oak Shade at Shadow Mountain / SW of
Palomar Road and Rouse Road,
Menifee / KB Home
1 3 / 2 1 / 2 1,472 $481,990 $327.44
2 3 / 2 1 / 2 1,620 $491,990 $303.70
3 4 / 2 1 / 2 1,846 7,200 sf lots $505,990 $274.10
4 4 / 3 2 / 2 1,977 8.9 sales/mo $515,990 $261.00
5 4 / 3 2 / 2 2,219 $529,990 $238.84
6 4 / 3 2 / 2 2,454 $545,990 $222.49
4 Persano at Shadow Mountain / NW of
Palomar Road and Rouse Road,
Menifee / KB Home
1 3 / 2 1 / 2 1,891 $512,990 $271.28
2 4 / 2 1 / 2 2,035 $523,990 $257.49
3 4 / 2 1 / 2 2,206 8,000 sf lots $525,990 $238.44
4 4 / 3 1 / 2 2,358 4.8 sales/mo $555,990 $235.79
5 4 / 2.5 2 / 2 2,544 $555,990 $218.55
6 4 / 2.5 2 / 2 2,773 $568,990 $205.19
7 5 / 3 2 / 2 3,086 $614,990 $199.28
5 Indigo at Shadow Mountain / SW of
Palomar Road and Rouse Road,
Menifee / KB Home
1 3 / 2 1 / 2 2,091 $516,990 $247.25
2 3 / 2 1 / 2 2,329 8,000 sf lots $540,990 $232.28
3 4 / 2 1 / 2 2,628 3.4 sales/mo $560,990 $213.47
4 4 / 2.5 1 / 2 2,913 $585,990 $201.16
6 Durango at Shadow Mountain / SW of
Palomar Road and Rouse Road,
Menifee / KB Home
1 3 / 2 1 / 2 2,099 $519,990 $247.73
2 4 / 2 1 / 2 2,381 8,000 sf lots $536,990 $225.53
3 4 / 2 1 / 2 2,621 6.3 sales/mo $549,990 $209.84
4 4 / 2.5 1 / 2 2,906 $577,990 $198.90
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 232
Menifee Mayor and City Council
January 18, 2023
Page
961 of 1063

7 Talavera / NEC Dawson Road and
Rouse Road, Menifee / KB Home
1 3 / 2 1 / 2 1,392 $536,990 $385.77
2 3 / 2 1 / 2 1,479 7,200 sf lots $544,990 $368.49
3 3 / 2 1 / 2 1,575 4.2 sales/mo $540,990 $343.49
4 4 / 2 1 / 2 1,779 $559,990 $314.78
5 3 / 2 1 / 2 1,860 $567,990 $305.37
8 Outlook at Sunset Crossing / Highway
74 and Leon Road, Homeland / Lennar
1 4 / 3 2 / 2 2,203 $486,315 $220.75
2 4 / 3 2 / 2 2,673 8,000 sf lots $512,200 $191.62
3 5 / 3 2 / 3 3,010 1.3 sales/mo $573,609 $190.57
4 (NG) 6 / 4.5 2 / 3 4,134 $722,970 $174.88
9 Pleasant Valley Ranch / NEC Simpson
Road and Leon Road, Winchester / D.R.

Horton
1 4 / 3 1 / 2 1,898 $548,990 $289.25
2 4 / 3.5 2 / 2 2,239 9,000 sf lots $567,990 $253.68
3 4 / 3.5 2 / 2 2,435 8.0 sales/mo $596,990 $245.17
4 5 / 3 2 / 2 2,537 $596,990 $235.31
5 4 / 3.5 2 / 2 2,617 $610,990 $233.47
10 Heritage at Banner Park / Domenigoni
Pkwy and Lindenberger Road, Menifee /
Pulte Homes
1 3 / 2 1 / 2 2,191 6,000 sf lots $535,990 $244.63
2 3 / 2.5 1 / 2 2,311 4.4 sales/mo $548,990 $237.56
3 3 / 2.5 1 / 3 2,462 $567,990 $230.70
11 Crest at Banner Park / Domenigoni
Pkwy and Lindenberger Road, Menifee /
Pulte Homes
1 4 / 2.5 2 / 3 2,845 6,000 sf lots $548,990 $192.97
2 (NG) 5 / 3.5 2 / 3 3,047 4.5 sales/mo $613,990 $201.51 3 (NG) 5 / 3.5 2 / 3 3,237 $524,990 $162.18
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 233
Menifee Mayor and City Council
January 18, 2023
Page
962 of 1063

APPRAISER’S QUALIFICATIONS

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 234
Menifee Mayor and City Council
January 18, 2023
Page
963 of 1063

QUALIFICATIONS OF KITTY S. SIINO, MAI

Education

Bachelor of Arts in Business Administration, Financial Investments, California State University, Long Beach, California (1980)

Post-Graduate Study, Real Estate Development, University of California, Irvine, California

Appraisal Institute Classes: Uniform Standards of Professional Appraisal Practice, A & B; Appraisal Principles; Appraisal Procedures; Basic Income Capitalization; Advanced Income Capitalization; Narrative Report Writing; Advanced Applications, Case Studies.

Successfully completed all classes in addition to successfully completing the writing of a Demonstration Report and taking the Comprehensive Exam. Beca me a Member of the Appraisal Institute in December 1996. Have completed over 100 hours of continuing education through the Appraisal Institute every five years.

Employment

1988 - Present:

Self-Employed Real Estate Appraiser. Duties include the appraisal of various types of properties such as commercial, retail, industrial and vacant land. More complex assignments include easements, right-of-ways and special assessment districts. From 1996 to present, specialized in special assessment districts and community facilities districts appraisals for public entities, including Jurupa Community Services District, Corona Norco Unified School District, City of Corona, City of Chula Vista, City of San Marcos and City of Moreno Valley.

1986-1988:

Project M anager of Development for Ferguson Partners, Irvine, California. Duties included land acquisitions; review of fee appraisals and valuations; analysis of proposed development; planning and design; and management of development, construction and lease-up. The types of properties developed were commercial and industrial. Duties ranged from raw, vacant site development through property management of recently developed projects.

1981 - 1986
Manager of Finance, Construction for Community Development Division, The Irvine Company, Irvine, California. Duties included originating and managing a newly formed division of finance to bridge between the accounting functions and project management functions. Worked with analysis and budgets for Community Development Division. Coordinated with cities in forming new Assessment Districts and Community Facilities Districts to finance major infrastructure improvements.

Types of properties were apartments and single- family residential lots on a for sale basis to apartment and homebuilders.

1980 - 1981
Investment Counselor, Newport Equity Funds, Newport Beach, California. Duties included obtaining private financing for residential properties, working with appraisals of properties and analyzing the investments.

Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 235
Menifee Mayor and City Council
January 18, 2023
Page
964 of 1063

Licenses
Real Estate Sales Person, State of California, 1980
Certified General Appraiser, State of California (#AG004793)

Organizations
MAI #11145 - The Appraisal Institute

Public Financing
CASTOFF Meetings, 2006, 2007, 2008, 2009, 2010, 2011, 2013, 2014, 2015, 2016, 2017, 2018, 2019 and 2022
Speaker, Mello- Roos & Special Assessment Financing, UCLA Extension Publi c Policy Program, February 2009 and March 2011
Item Title: 12.1
Community Facilities District 2020-1, McCall Mesa, Issuance of Special Tax Bonds Item Page Number: 236
Menifee Mayor and City Council
January 18, 2023
Page
965 of 1063

CITY OF MENIFEE
SUBJECT: Proposed Committee and Commission Appointments MEETING DATE: January 18, 2023
TO: Mayor and City Council
PREPARED BY: Kay Vinson, Acting City Clerk
REVIEWED BY: Kay Vinson, Acting City Clerk
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Mayor Pro Tem Karwin to appoint each of the following: a) Quality of Life Measure DD Oversight Committee Member, and b) Senior Advisory Committee Member; and

2. Councilmember Estrada to appoint each of the following: a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner, c) Quality of Life Measure DD Oversight Committee Member, and d) Senior Advisory Committee Member; and

3. Councilmember Sobek to appoint each of the following: a) Qualify of Life Measure DD Oversight Committee Member, and b) Senior Advisory Committee Member; and

4. Councilmember Deines to appoint each of the following: a) Planning Commissioner, b) Parks, Recreation, and Trails Commissioner; c) Quality of Life Measure DD Oversight Committee Member, and d) Senior Advisory Committee Member; and

5. Mayor Zimmerman to appoint each of the following: a) Quality of Life Measure DD Oversight Committee Member, and b) Senior Advisory Committee Member.

DISCUSSION
Each Councilmember appoints Commissioners concurrent with their Council term of four years and two-years for Committee appointments. There are no term limits for Commissioners or Committee Members, and Councilmembers may reappoint members.

There are specific noticing requirements for vacancies as stated in the Maddy Act. The intent of the Maddy Act is to allow maximum public awareness of appointments to be made by the City Council and to allow the public an opportunity to participate in their government (Government Code 54970). The Maddy Act requires posting of the attached Local Appointments List and must Item Title: 12.2
Proposed Committee and Commission Appointments
Item Page Number: 1
Menifee Mayor and City Council
January 18, 2023
Page
966 of 1063

City of Menifee Staff Report
Proposed Committee and Commission Appointments
January 18, 2023

Page 2 of 2 ends

1 3
5 7
include appointment and expiration dates, appointment requirements, and meeting information.

In an effort to streamline the appointment process while following legal requirements, the City Clerk has implemented a biennial recruitment process for the City’s Committees and Commissions. The notice of vacancies was published on November 9 and 28, 2022, posted on the City’s website, and noticed on the City’s various social media platforms. Applications were accepted through December 9, 2022. The City Clerk accepted a total of 60 applications for all vacancies, which includes applications for multiple Commission/Committees. At the conclusion of the recruitment deadline, the City Clerk vetted and compiled all applications that met the minimum requirements for the City Council to review in order to make their appointment selections. If desired, interviews were scheduled with the appointing Councilmember.

Applicants not selected during this round of appointments will be placed on an interest list for two- years and may be contacted if any vacancies occur prior to the next biennial recruitment. All applicants that were not selected will be notified by letter from the City Clerk’s office with contact information for other options to volunteer for their community.

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

ATTACHMENTS

1. 2023 Proposed Local Appointments List
Item Title: 12.2
Proposed Committee and Commission Appointments
Item Page Number: 2
Menifee Mayor and City Council
January 18, 2023
Page
967 of 1063

CITY OF MENIFEE

PROPOSED

LOCAL APPOINTMENTS LIST
Pursuant to Government Code Section 54972, a Local Appointments List shall be prepared including regular and ongoing commissions whose members serve at the pleasure of the Menifee City Council. Following is an open list of local appointive offices containing the incumbent appointees, dates of appointment, and dates terms expire. To be eligible for appointment to a commission, a person must: 1) be a registered voter within the City; and 2) not be a City employee.

Planning Commission

(Meets 2nd & 4th Wednesday of Each Month at 6:00 PM at City Hall, Council Chambers)

Commissioner Appointment Date Term Expiration Appointed By Randy Madrid January 20, 2021 December 2024 Mayor Bill Zimmerman Christopher Thomas January 20, 2021 December 2024 Councilmember Lesa Sobek Jeff LaDue January 20, 2021 December 2024 Mayor Pro Tem Bob Karwin Benjamin Diederich January 20, 2021 December 2026 Councilmember Dean Deines on 1-18-23 Joe Long January 18, 2023 December 2026 Councilmember Ricky Estrada

Parks, Recreation and Trails Commission

(Meets 1st Thursday of Each Month at 6:00 PM at City Hall, Council Chambers)

Commissioner Appointment Date Term Expiration Appointed By William Ackerman January 20, 2021 December 2024 Mayor Bill Zimmerman David Foust September 15, 2021 December 2024 Councilmember Lesa Sobek Scott Bangle January 20, 2021 December 2024 Mayor Pro Tem Bob Karwin Tierra Bowen August 17, 2022 December 2026 Councilmember Dean Deines William Payne January 18, 2023 December 2026 Councilmember Ricky Estrada

Quality of Life Measure DD Oversight Committee

(Meets a minimum of two times per year, prior to FY budget adoption and Mid-Year adoption, at City Hall, Council Chambers)

Committee Member Appointment Date Term Expiration Appointed By Michael Knighten April 6, 2022 December 2024 Mayor Bill Zimmerman Michael Cano January 20, 2021 December 2024 Councilmember Lesa Sobek June Conant October 5, 2022 December 2024 Mayor Pro Tem Bob Karwin John Standish October 5, 2022 December 2024 Councilmember Dean Deines Laz Peterson January 18, 2023 December 2024 Councilmember Ricky Estrada

Item Title: 12.2
Proposed Committee and Commission Appointments
Item Page Number: 3
Menifee Mayor and City Council
January 18, 2023
Page
968 of 1063

Senior Advisory Committee

(Meets 4th Tuesday of Each Month at 10:00 AM at City Hall, Council Chambers) * Must be 55 years or older

Committee Member Appointment Date Term Expiration Appointed By Gloria Sanchez January 20, 2021 December 2024 Mayor Bill Zimmerman Bruce Atwood January 20, 2021 December 2024 Councilmember Lesa Sobek Linda Blanche January 20, 2021 December 2024 Mayor Pro Tem Bob Karwin Anne-Marie Novack January 20, 2021 December 2024 Councilmember Dean Deines Debbie Manion January 18, 2023 December 2024 Councilmember Ricky Estrada

List Updated January 11, 2023
Item Title: 12.2
Proposed Committee and Commission Appointments
Item Page Number: 4
Menifee Mayor and City Council
January 18, 2023
Page
969 of 1063

CITY OF MENIFEE
SUBJECT: City of Menifee Legislative Platform
MEETING DATE: January 18, 2023
TO: Mayor and City Council
PREPARED BY: Philip Southard, Public Information and Legislative Affairs Officer
REVIEWED BY: Rochelle Clayton, Assistant City Manager
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review and approve the updated Legislative Platform; and

2. Reaffirm the Legislative Policy approved on August 5, 2020.

DISCUSSION
Since the City’s incorporation, the Mayor and City Council have taken positions on legislation and issues at the county, state, and federal levels. On August 5, 2020, the City Council adopted a formal legislative program consisting of a Platform and City Council Policy to ensure that positions on critical legislation could be addressed expeditiously. The Legislative Platform summarizes the Mayor and City Council’s positions on priority issues and is used to guide city officials and staff in responding to legislative proposals at the county, state, and federal levels throughout the year.

Legislative Platform
The Legislative Platform is designed to be a living document that evolves and enables city officials and staff to quickly respond to issues impacting the City. The Platform was prepared based upon the City’s history of legislative actions, departmental review, alignment with the City’s adopted Strategic Plan, and review of priorities from the League of California Cities. The Platform is divided into seven categories including:
➢Community Services
➢Environmental Quality
➢Governance, Transparency & Labor Relations
➢Housing, Community & Economic Development
➢Public Safety
➢Revenue & Taxation
➢Transportation, Communications & Public Works
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 1
Menifee Mayor and City Council
January 18, 2023
Page
970 of 1063

City of Menifee Staff Report
Legislative Platform
January 18, 2023

Page 2 of 3 ends

1 3
4 8
The Legislative Platform has been revised to align with updates to the goals and objectives outlined in Menifee’s Strategic Plan considered in combination with the regulatory changes that have occurred since the Platform was last presented for review in August 2020. The proposed changes to the Platform are summarized below.
➢Community Services
▪Social Services: Provision updated to reflect support for regional partnerships on a regional basis that provide for social services programs/initiatives that serve the needs of the Menifee community.
▪Homelessness: Section revised to reference support for legislation and funding to address homelessness with comprehensive “regional strategies” for supportive services.
➢Governance, Transparency & Labor Relations
▪Mail Ballot Elections: Provision removed as universal mail-in voting has been established as a standard in California elections.
➢Public Safety
▪Cybersecurity: Section added that addresses support for legislation that strengthens and enhances cybersecurity efforts, helps protect against malicious cyber incidents, and enhances the security and resilience of critical infrastructure. ➢Revenue & Taxation
▪Hiring Tax Credits: Provision removed as the City of Menifee is not currently part of a federally designated census tract opportunity zone.
➢Transportation, Communications & Public Works
▪Broadband: Section added to support grants and other funding opportunities that will help the City implement its Broadband Master Plan and Smart City key initiatives.

City Council Policy
This Policy outlines the procedure for City staff to address, track, and act quickly in response to legislative proposals and regulations. The procedure provides for the City Manager to review requests to take positions on an issue. For approved requests in accordance with the Platform, a communication will be prepared for the Mayor’s approval and signature, and shared with the members of the City Council. Requests inconsistent with the Platform or silent on issues will continue to be placed on a City Council agenda for consideration.

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Government

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 2
Menifee Mayor and City Council
January 18, 2023
Page
971 of 1063

City of Menifee Staff Report
Legislative Platform
January 18, 2023

Page 3 of 3 ends

1 3
4 8

ATTACHMENTS

1. Legislative Platform 2023

2. Legislative Platform 2023 (Redlined)

3. Policy – Legislative Program (Approved August 5, 2020) Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 3
Menifee Mayor and City Council
January 18, 2023
Page
972 of 1063

City of Menifee
Legislative Platform
2023
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 4
Menifee Mayor and City Council
January 18, 2023
Page
973 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL District 1 District 2 District 3 District 4 Mayor at Large Bob Karwin Ricky Estrada Lesa Sobek Dean Deines Bill Zimmerman Elected 2020 Elected 2022 Elected 2020 Elected 2022 Elected 2022

Four District Boundary Map
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 5
Menifee Mayor and City Council
January 18, 2023
Page
974 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL PURPOSE

The primary purpose of a Legislative Platform is to adopt official City positions on matters affecting the City at the local, regional, state and federal levels. The approved platform allows City staff and legislative advocates to address and track issues in a timely manner pursuant to established procedures.

The platform was developed based on Menifee’s historical actions (resolutions, minutes, letters) on legislative issues, policies and guiding principles from the League of California Cities, and departmental review. The following seven categories have been utilized incorporating related topics. ➢ Community Services
➢ Environmental Quality
➢ Governance, Transparency & Labor Relations
➢ Housing, Community & Economic Development
➢ Public Safety
➢ Revenue & Taxation
➢ Transportation, Communications & Public Works

OVERARCHING GUIDELINES

1. Preservation of Local Control
Support measures that preserve and protect the City’s general law powers and duties to enact legislation and policy direction concerning local affairs. Oppose measures that reduces, eliminates, preempts local control or authority, or conflicts with other legislative priorities.

2. Promotion of Fiscal Stability
Support measures that promote fiscal stability, predictability, and financial independence. Support measures that preserve and promote the City’s revenue base. Oppose measures that shift local funds to the County, State, or Federal government without offsetting benefits or imposes penalties on cities.

3. Support Funding Opportunities
Support measures that allow the City to compete for its fair share of regional, State , and Federal funding including competitive grants and other funding programs. Support measures that promote dedicated funding streams at the regional, St ate, and Federal levels allowing the City to maximize local revenues, offset and leverage capital expenditures, and maintain City goals and standards.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 6
Menifee Mayor and City Council
January 18, 2023
Page
975 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL

Location

The City of Menifee, California is located in the southwestern region of Riverside County, approximately 12 miles north of the City of Temecula and 30 miles south of the City of Riverside along Interstate Highway 215. The City of Menifee is roughly 50 square miles in size with a current population of just over 112,000 residents and is anticipated to reach 117,000 over the next two years (Derrigo 2022).

Incorporated on October 1, 2008, the City of Menifee includes the communities of Menifee, Menifee Lakes, Sun City, Quail Valley, Paloma Valley, and portions of Romoland.

Desirability

Menifee was recently recognized by Safewise.org. as one of the safest cities in California. Menifee leadership is committed to maintaining this standard . Public safety is a priority for the City Council. The City furthered this commitment by launching the Menifee Police Department on July 1, 2020.
____________________________________________________________________________________

Menifee is close to everything California. Its family -oriented community, natural setting , and sweeping vistas make it a fantastic city in which to live, work, and play.

____________________________________________________________________________________

Menifee schools are ranked 2nd in Academic Achievements in Riverside County and 1st in science-based learning. With incoming young families in Menifee at record numbers, Menifee school districts are adding schools to keep pace with Menifee’s booming population. There are 5 future schools planned within the City limits, including 4 elementary schools and 1 middle school. A new high school, Liberty High School, is now open.

____________________________________________________________________________________

Safety

Livability
Schools

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 7
Menifee Mayor and City Council
January 18, 2023
Page
976 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL
Booming Population

College Town Menifee is proud to be recognized as a “College Town.” Menifee is home to the fastest growing California Community College, Mt. San Jacinto Community College (MSJC). MSJC is currently in construction at the Menifee campus with a 5,000-seat stadium, providing for the largest on-field outdoor event space. The facility will support MSJC’s award-winning athletic program and host community events and concerts. With a concentration on Science and Technology in the City, MSJC is currently constructing a $40 million STEM building which will house labs and support programming to provide the skilled workforce for the incoming labor pools. The college recently invested $11 million in renovations with campus improvements and technology, resulting in a $700 million regional impact. Menifee also houses higher education universities, such as Brandman University and Bellevue University. ____________________________________________________________________________________ Economic Development

____________________________________________________________________________________

New Upscale Housing Menifee’s housing capacity continues to grow, catering to incoming young families. There are 24 new residential projects under construction, with about 21 more in the pipeline. 2,500 new homes are expected to be built by 2024. There are estimated to be more than 45,000 households in Menifee by the end of 2025.

Young, Skilled Workforce Young and eager, the Menifee area has an abundant, skilled workforce available. With 58.3% of the population between the ages of 18 and 44 , these residents are ready for employment close to home.

Attractive Business Incentives Constantly seeking new and innovative ways to partner with our business community to contribute to Menifee’s thriving economy, the City of Menifee offers attractive business incentives for incoming businesses that appeal to the community needs and desires.

Commitment to Infrastructure Menifee understands how circulation plays a vital role in the quality of life of our residents and businesses success. In May 2022, the City’s Capital Improvement Program (CIP ) was approved by the City Council and reflects a commitment to Park, Infrastructure, and Circulation Improvement projects over the next five years, aimed at improving the quality of life for residents and making it easier to do business in Menifee.

A growing economic powerhouse, Menifee has the largest regional draw of over 1.2 million people . Recognized as the number one Boomtown in California and 5 th in the nation, Menifee has a 3.5 percent growth rate per year and is attracting young professional and families that are clamoring for shopping, dining , and entertainment amenities in their own community. As more developers are discovering this unique situation, Menifee is buzzing as the new hot spot in Riverside County.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 8
Menifee Mayor and City Council
January 18, 2023
Page
977 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL
Community
Services

PARKS & RECREATION
• Parks & Recreation - Support legislation and funding for acquisition, development, operation and maintenance of open space, recreation, parks, libraries, and community services.

CULTURAL
• Art & Historical Sites - Support legislation that provides funding to support visual and performing public art and historical sites.

HUMAN SERVICES
• Social Services - Support collaborative partnerships on a regional basis that provide for social services programs/initiatives that serve the needs of the Menifee community.

• Health & Wellness - Support legislation and funding for programs for the physical and mental health and wellness of families, including youth, seniors, and veterans.

• Homeless - Support legislation and funding to address homelessness with comprehensive regional strategies for supportive services. Oppose legislation limiting local authority and restricting enforcement to address homelessness.

Environmental
Quality
Water and water quality, energy,
utilities, air, climate,
environmental regulations, and
waste management

WATER
• Watershed - Support legislation and funding addressing urban runoff pollution and flood control improvements.

• Water - Support legislation and funding for water efficiency improvements, including conservation, adequate supply of safe drinking water and desalination programs. Oppose legislation that imposes mandates or punitive measures on cities or unduly shifts costs.

• Stormwater - Support the incremental revision of stormwater regulation and permitting in a manner that retains local flexibility to determine how best to meet the State’s water quality objectives.

ENERGY
• Energy - Support legislation and funding for local control of renewable energy sources and balanced energy efficient solutions proven to be cost efficient, as well as construction of energy producing facilities needed to meet increased demand.

AIR
• Air Quality - Support legislation that promotes regional improvement of air quality, recognizing that air pollution does not follow jurisdictional boundaries.

Oppose legislation that restricts local and regional authority.

Parks, Recreation, Libraries,
Arts, Youth, Senior,
Community and Human
Services
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 9
Menifee Mayor and City Council
January 18, 2023
Page
978 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL

• Air Quality District - Support legislation maintaining Air Quality Management District air credits. Oppose reduction of local official representation on the South Coast Air Quality Management Board.

ENVIRONMENTAL
• California Environmental Quality Act - Support legislation that improves and streamlines the California Environmental Quality Act (CEQA) and provides funding to assist local agencies in implementing CEQA.

• Green - Support the National Environmental Policy Act and green procurement and sustainable practices policies. Oppose legislation that imposes undue hardship on local agencies to implement environmental regulations.

• Waste Management - Support legislation and funding for local control to regulate solid waste, single -use packaging, hazardous waste, recyclable materials, siting waste treatment facilities, and abandoned vehicles.

Governance,
Transparency &
Labor Relations

GOVERNANCE
• Local Control - Support legislation maintaining and providing greater local control by municipalities, including contracting for city services, and opposing contrary legislation.

• Elections - Support legislation reducing unnecessary and costly procedures for conducting a municipal election and oppose contrary legislation.

• Political Reform Act - Support legislation to improve and streamline the Political Reform Act and its implementation through regulations.

• Public Notices - Support legislation allowing alternative methods of meeting public notice and publication requirements through the use of technology and cost-effective communication.

• Liability - Support legislation limiting exposure of local governments to liability, including unimproved natural conditions and design immunity.

TRANSPARENCY
• Transparency - Support legislation for State and local government to conduct public business openly with appropriate access to public records. Oppose legislation to require records disclosure processes resulting in increased costs.

LABOR
• Labor Relations - Oppose legislation imposing mandated employee benefits and imposing restrictions over employer/employee negotiations or disputes.

Elections, Open Access,
Public Records, Political
Reform Act, Employees &
Labor Relations, Liability
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 10
Menifee Mayor and City Council
January 18, 2023
Page
979 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL

• Pensions - Support legislation providing sustainable and secure public pensions and other post -retirement benefits to ensure responsive and affordable public services.

• Workers’ Compensation - Support legislation streamlining th e Workers’ Compensation system, including registered volunteer disaster service workers.

Oppose legislation increasing employee Workers’ Compensation benefits without system reform to offset increased employer costs.

• Disability - Oppose legislation providing presumptive eligibility for the award of Workers’ Compensation or other employee health benefits.

• Unemployment Insurance - Oppose legislation increasing employer liability for unemployment compensation.

Housing,
Community &
Economic
Development
Land use, annexation, housing,
building standards, economic
development, redevelopment,
mobile homes, sign regulations.

LAND USE
• Land Use - Support legislation that strengthens local control on land use s, plans for responsible growth, development, redevelopment, zoning, and annexations.

Oppose legislation that reduces local control.

• Local Control - Oppose legislation that would limit or res trict local land use decision-making authority, including the imposition of one -size-fits-all, land-use, parking, building and development guidelines.

• Annexations - Oppose legislation that creates fiscal impediments to future annexations.

• Sphere of Influence - Support changes to Sphere of Influence legislation to limit county development that would impact city and allow cities to annex logical growth.

• Habitat Conservation - Support legislation that provides funding for habitat management planning, maintenance, and administration.

• Eminent Domain - Oppose legislation restricting the use of eminent domain to acquire land not zoned for residential use for redevelopment.

• Right-of-Way - Support legislation allowing cities to manage public right-of-way and receive compensation for its use.

• Environmental Barriers - Support legislation and funding to reduce environmental barriers to structure and land development and to clean up brownfields.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 11
Menifee Mayor and City Council
January 18, 2023
Page
980 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL

• Infrastructure - Support funding mechanisms encouraging infra structure development and fair distribution of infrastructure bonds generally as well as filling the revenue gap resulting from dissolution of redevelopment.

• Building - Support legislation and funding for State building codes addressing safety, mitigation of natural hazards, and cost-effective green building standards.

HOUSING
• Housing - Support legislation and funding programs promoting production and rehabilitation of safe, affordable, and accessible housing; and support increasing the maximum home sale price allowed under Federal and State home ownership funded programs.

• Housing Element - Support legislation and funding to allow regional cooperation and establishing realistic housing goals and oppose legislation imposing mandates or penalties.

• Road Funding - Oppose legislation unfairly tying road funding to local decisions on density and affordable housing.

• Mortgage Debt Tax - Support legislation for cancellation of mortgage debt tax.

• Foreclosed Properties - Support non-profits, i.e., Habitat for Humanity to acquire and rehabilitate foreclosed properties in blighted areas.

• Group Homes - Support legislation that increases local control over location of community care facilities/group homes.

• Mobile Homes - Support legislation enhancing lives for mobile home residents, including requiring training for park managers , and prohibiting park managers from requiring residents to use a specific dealer or broker.

ECONOMIC DEVELOPMENT
• Economic Development - Support legislation and funding for business-friendly principles to attract new businesses and retain existing businesses.

• Jobs and Revenue - Support legislation providing tools and incentives necessary for economic development (i.e. jobs, revenue).

• Tax Increment - Support legislation for financing programs encouraging economic development including tax increment financing.

• Impact Fees - Oppose legislation that would inappropriately limit local government authority to impose impact fees.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 12
Menifee Mayor and City Council
January 18, 2023
Page
981 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL

• Operations/Construction - Support legislation that increases flexibility in the development and building process and streamlines environmental statutes.

Oppose legislation that would result in increased costs for businesses to operate/construct facilities.

• International Sales - Support legislation, including measures that remove barriers, allowing local businesses and industries to sell goods and services internationally.

• Cap and Trade - Support legislation and policy that maintains the “Cap and Trade” Program to support the CalRecycle Recycling Market Development Zone (RMDZ) Loan Program. Oppose any legislation that proposes to make significant and/or controversial changes to the existing RMDZ Loan Program, up to and including the elimination of the program or funding support.

• Occupational Programs - Support legislation, funding and policies that promote Regional Occupation Programs, trade schools, investment in research and development technology, and tax incentives for manufacturing.

• Education - Support all attempts to bring higher education and pathway opportunities to the region.

• Base Realignment - Oppose closure of regional military installations.

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
• Funding – Support the preservation of funding for the Community Development Block Grant program and increasing the funds available under the program.

• Reporting - Support legislation that would consolidate and streamline the administration and reporting requirements of the Community Development Block Grant (CDBG) program. Advocate for greater flexibility of local appropriation and use of funds.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 13
Menifee Mayor and City Council
January 18, 2023
Page
982 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL Public Safety
Law enforcement, fire and life
safety, emergency
communications, emergency
services, disaster preparedness,
nuisance abatement, and
animal control services

LAW ENFORCEMENT
• Law Enforcement - Support legislation, funding, and efforts strengthening State and local law enforcement efforts directed towards crime prevention and public safety to create a safer city.

• Crime - Support legislation and funding to address crime related to drug (including synthetics), alcohol, burglary, assault, sex offenders, domestic violence, gangs, mental health and juvenile-related (tobacco, bullying) problems.

• Crime Victims - Support legislation and funding to protect crime victims.

• Cost Recovery - Oppose legislation impeding local law enforcement from addressing crime problems and recovering costs resulting from the responsible party.

• Early Release - Oppose legislation for early release of prisoners, including low-risk serious and violent offenders without sustained funding to ensure adequate post- release supervision.

• Court - Support measures to provide adequate judicial and court services.

• Homeland Security - Support legislation and f unding coordinating homeland security programs and training to respond to regional or national threats and adding security measures to protect residents against terrorist activity.

• Immigration - Recognize existing immigration laws and legitimate amnesty a nd support legislation solving the immigration crisis that adversely impacts local jurisdictions.

• Federal Worker Eligibility - Support efforts to improve the federal worker eligibility verification process to ensure employees are hired by businesses in the most efficient manner possible.

• Asset Forfeiture - Support legislation providing a greater share and increased latitude to spend asset forfeiture funds and to reimburse cities for overtime costs paid to public safety personnel who are required to appear in State and/or County courts.

• Peace Officer Compensation - Support legislation allowing local control of peace officers’ salaries and benefits.

• Community Oriented Policing - Oppose legislation that decreases funding to Community Oriented Policing efforts.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 14
Menifee Mayor and City Council
January 18, 2023
Page
983 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL

• Cybersecurity - Support legislation that strengthens and enhances cybersecurity efforts, helps protect against malicious cyber incidents, and enhances the security and resilience of critical infrastructure.

FIRE
• Fire and Life Safety Services - Support legislation and funding with local control for strengthening fire and life safety services, including fire suppression and prevention, hazardous materials mitigation, emergency medical services and training, and disaster preparedness. Oppose legislation that restricts local control over the enforcement of fire and life safety regulations.

• Wireless Communications - Support legislation and funding for providing public safety agencies greater access and adequate frequencies to wireless communication necessary for a multi -jurisdictional connectivity and national wireless broadband network, free from intrusion.

• Fire and Life Safety Codes - Support legislation increasing local control in adopting Fire and Life Safety Codes and development of the national fire code in an open, consensus-based process.

• Fire Prevention - Support legislation and funding for promoting installation of fire sprinklers in new non-residential buildings, requiring maintenance of defensible space and undergrounding overhead utilities in wildfire-prone areas.

• Disaster Preparedness - Support disaster and civil defense master mutual aid agreements and disaster relief and emergency assistance act.

Revenue &
Taxation
Finance, tax reform, general and
special revenue at federal, state,
and local levels

REVENUE
• Revenue Protection - Support legislation to protect City revenue sources and to strengthen and expand ongoing revenue and independence for the City, including greater local control over how funds are expended . Oppose legislation that undermines or preempts local authority over local taxes and fees.

• City Rev enue Sources - Oppose legislation seizing City tax funds or negatively changing revenue allocations to cities, such as property tax, street maintenance funds, vehicle license fees , sales tax, public safety augmentation funds, community-oriented policing (COPS) grants, gas tax, transient occupancy tax, and Community Block Grant funding.

• Funding - Support legislation and funding for dedicated revenue sources at all governmental levels, including funding for public facilities, such as libraries and open space. Allow the City to compete for its fair share of grants and funding programs. Support fe deral legislation requiring states to distribute federal pass - through funds in an equitable manner to local government.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 15
Menifee Mayor and City Council
January 18, 2023
Page
984 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL

• Mandates - Support full cost reimbursement to the City for all Federal, State and county mandates. Oppose legislation imposing unfunded State mandates.

• Contracting - Support legislation removing barriers to use in-house staff for public works construction contracts over $5,000. Oppose legislation limiting ability to contract out for provision of services and opposing limiting negotiation indemnification protection in public contracts.

• Municipal Bonds - Oppose legislation reducing or removing tax-exempt status of municipal bonds.

TAXATION
• Proposition 13 - Oppose legislation weakening taxpayer protections or to raise tax revenue at the expense of residential or business community.

• Tax-Exempt Debt - Oppose restrictions or limitations on the City to use tax-exempt debt or tax increment financing for the purchase or construction of public improvements.

• Voter-Approved Taxes - Support legislation preserving and enhanci ng the City’s ability to seek voter approval for taxes, i.e., transactions and use (sales) tax.

• Information Sharing - Support participation in local government information sharing with Franchise Tax Board.

Transportation,
Communications
& Public Works
Transportation, construction,
telecommunications, and public
works.

TRANSPORTATION
• Transportation - Support legislation and funding for multi-modal transportation planning and Intelligent Transportation System to achieve traffic efficiency , reducing traffic congestion, and increasing safety of City streets and arterials for vehicular, bicycle and pedestrian paths/trails.

• Transit - Support legislation and funding encouraging the use of transit and non - motorized transportation, including rail line, busses, reverse commute program, electric vehicles, transportation service and rapid transit.

• Funding - Support legislation to protect dedicated revenue sources for transportation and transit and insure equitable distribution of funding with consideration of population growth. Support legislation providing additional funding opportunities, increasing local flexibility in allocation of transportation funds, and enhancing City’s ability to finance transportation/transit programs and facilities and use of design-build standards.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 16
Menifee Mayor and City Council
January 18, 2023
Page
985 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

ATE & FEDERAL

• Taxes/Fees - Oppose measures to raise Federal or State revenues for transportation with fees, such as miles-traveled.

COMMUNICATIONS
• Telecommunications - Oppose legislation limiting local authority for telecommunications infrastructure and support legislation to retain existing fees on telecommunications services.

• Broadband - Support grants and other funding opportunities that will help the City implement its Broadband Master Plan and Smart City key priorities.

PUBLIC WORKS
• Infrastructure - Support legislation and funding for statewide community infrastructure program, including interchanges, flood control, watershed management, wastewater, and exempting criteria for new septic tank regulations.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 17
Menifee Mayor and City Council
January 18, 2023
Page
986 of 1063

City of Menifee
Legislative Platform
2023
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 18
Menifee Mayor and City Council
January 18, 2023
Page
987 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM
District 1 District 2 District 3 District 4 Mayor at Large Bob Karwin Ricky Estrada Lesa Sobek Dean Deines Bill Zimmerman Elected 2020 Elected 2022 Elected 2020 Elected 2022 Elected 2020

Four District Boundary Map
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 19
Menifee Mayor and City Council
January 18, 2023
Page
988 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

PURPOSE

The Platform was developed based on Menifee’s historical actions (resolutions, minutes, letters) on legislative issues, policies and guiding principles from the League of California Cities, and departmental review. The following seven categories have been utilized incorporating related topics. ➢ Community Services
➢ Environmental Quality
➢ Governance, Transparency & Labor Relations
➢ Housing, Community & Economic Development
➢ Public Safety
➢ Revenue & Taxation
➢ Transportation, Communications & Public Works

OVERARCHING GUIDELINES

2. Promotion of Fiscal Stability
Support measures that promote fiscal stability, predictability, and financial independence. Support measures that preserve and promote the City’s revenue base. Oppose measures that shift local funds to the county, state, or federal government without offsetting benefits or imposes penalties on cities.

3. Support Funding Opportunities
Support measures that allow the City to compete for its fair share of regional, state, and federal funding including competitive grants and other funding programs. Support measures that promote dedicated funding streams at the regional, state, and federal levels allowing the City to maximize local revenues, offset and leverage capital expenditures, and maintain City goals and standards.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 20
Menifee Mayor and City Council
January 18, 2023
Page
989 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

Location

The City of Menifee, California, is located in the southwestern region of Riverside County, approximately 12 miles north of the City of Temecula and 30 miles south of the City of Riverside , along Interstate Highway 215. The City of Menifee is roughly 50 -square miles in size with a curre nt population of just over 112,000 residents and is anticipated to reach 117,000 over the next two years (Derrigo 2022).

Incorporated on October 1, 2008, the City of Menifee includes the communities of Menifee, Menifee Lakes, Sun City, Quail Valley, Paloma Valley, and portions of Romoland.

Desirability

Menifee was recently recognized by Safewise.org. as one of the safest cities in California. Menifee ’s leadership is committed to maintaining this standard . Public safety is a priority for the City Council. The City furthered this commitment by launching the Menifee Police Department on July 1, 2020.
____________________________________________________________________________________

Menifee is close to many of California’s prime destinations including beaches, mountains, wineries, and desert retreats. Its family-oriented community, natural setting , and sweeping vistas make it a fantastic city in which to live, work, and play.

____________________________________________________________________________________

Menifee’s schools are ranked 2nd in Academic Achievements in Riverside County, and 1st in science-based learning. With incoming young families in Menifee at record numbers, Menifee ’s school districts are adding schools to keep pace with the City’s booming population. There are 5 future schools planned within the City limits, including 4 elementary schools and 1 middle school. A new high school, Liberty High School, is now open.

____________________________________________________________________________________

Safety

Livability
Schools

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 21
Menifee Mayor and City Council
January 18, 2023
Page
990 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM
Booming Population

College Town Menifee is proud to be recognized as a “College Town.” Menifee is home to the fastest growing California Community College, Mt. San Jacinto Community College (MSJC). MSJC is currently in construction at the Menifee campus with a 5,000-seat stadium, providing for the largest on-field outdoor event space. The facility will support MSJC’s award-winning athletic program, and host community events and concerts. With a concentration on Science and Technology in the City, MSJC is currently constructing a $40 million STEM building which will house labs and support programming to provide the skilled workforce for the incoming labor pools. The College recently invested $11 million in renovations with campus improvements and technology, resulting in a $700 million regional impact. Menifee also houses higher education universities, such as University of Massachusetts and Bellevue University. ____________________________________________________________________________________ Economic Development

____________________________________________________________________________________

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 22
Menifee Mayor and City Council
January 18, 2023
Page
991 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

Community
Services

CULTURAL
• Art & Historical Sites - Support legislation that provides funding to support visual and performing public art and historical sites.

HUMAN SERVICES
• Social Services - Support collaborative partnerships on a regional basis to implement programs to address freedom of religion, autism, bullying, and substance abuse that provide for social services programs/initiatives that serve the needs of the Menifee community.

• Health & Wellness - Support legislation and funding for programs for the physical and mental health and wellness of families, including youth, seniors, and veterans.

• Homelessness - Support legislation and funding to address homelessness with comprehensive regional strategies for supportive services. Oppose legislation limiting local authority and restricting enforcement to address homelessness.

Environmental
Quality
Water and water quality, energy,
utilities, air, climate,
environmental regulations, and
waste management

WATER
• Watershed - Support legislation and funding addressing urban runoff pollution and flood control improvements.

Parks, Recreation, Libraries,
Arts, Youth, Senior,
Community and Human
Services
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 23
Menifee Mayor and City Council
January 18, 2023
Page
992 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

AIR
• Air Quali ty - Support legislation that promotes regional improvement of air quality, recognizing that air pollution does not follow jurisdictional boundaries.

Oppose legislation that restricts local and regional authority.

• Air Quality District - Support legislati on maintaining Air Quality Management District air credits. Oppose reduction of local official representation on the South Coast Air Quality Management Board.

Governance,
Transparency &
Labor Relations

GOVERNANCE
• Local Control - Support legislation maintaining and providing greater local control by municipalities, including contracting for city services, and opposing contrary legislation.

• Elections - Support legislation reducing unnecessary and costly procedures for conducting a municipal election and oppose contrary legislation.

• Mail Ballot Elections - Support legislation allowing cities to conduct mail ballot elections when appropriate to reduce the cost of elections and increase voter turnout.

• Political Reform Act - Support legislation to improve and streamline the Political Reform Act and its implementation through regulations.

• Public Notices - Support legislation allowing alternative methods of meeting public notice and publication requirements through the use of technology and cost-effective communication.

• Liability - Support legislation limiting exposure of local governments to liability, including unimproved natural conditions and design immunity.

Elections, Open Access,
Public Records, Political
Reform Act, Employees &
Labor Relations, Liability
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 24
Menifee Mayor and City Council
January 18, 2023
Page
993 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

LABOR
• Labor Relations - Oppose legislation imposing mandated employee benefits and imposing restrictions over employer/employee negotiations or disputes.

• Pensions - Support legislation providing sustainable and secure public pensions and other post -retirement benefits to ensure responsive and affordable public services.

• Workers’ Compensation - Support legislation streamlining the Workers’ Compensation system, including registered volunteer disaster service workers.

Oppose legislation increasing employee Workers’ Compensation benefits without system reform to offset increased employer costs.

• Disability - Oppose legislation providing presumptive eligibi lity for the award of Workers’ Compensation or other employee health benefits.

• Unemployment Insurance - Oppose legislation increasing employer liability for unemployment compensation.

Housing,
Community &
Economic
Development
Land use, annexation, housing,
building standards, economic
development, redevelopment,
mobile homes, sign regulations.

LAND USE
• Land Use - Support legislation that strengthens local control on land use s, plans for responsible growth, development, redevelopment, zoning, and annexations.

Oppose legislation that reduces local control.

• Annexations - Oppose legislation that creates fiscal impediments to future annexations.

• Sphere of Influence - Support changes to Sphere of Influence legislation to limit county development that would impact city and allow cities to annex logical growth.

• Habitat Conservation - Support legislation that provides funding for habitat management planning, maintenance, and administration.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 25
Menifee Mayor and City Council
January 18, 2023
Page
994 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

• Eminent Domain - Oppose legislation restricting the use of eminent domain to acquire land not zoned for residential use for redevelopment. • Right-of-Way - Support legislation allowing cities to manage public right-of-way and receive compensation for its use.

• Environmental Barriers - Support legislation and funding to reduce environmental barriers to structure and land development and to clean up brownfields.

• Infrastructure - Support funding mechanisms encouraging infrastructure development and fair distribution of infrastructure bonds generally as well as filling the revenue gap resulting from dissolution of redevelopment.

• Building - Support legislation and funding for State building codes addressing safety, mitigation of natural hazards, and cost-effective green building standards.

• Housing Element - Support legislation and funding to allow regional cooperation and establishing realistic housing goals. Oppose legislation imposing mandates or penalties.

• Road Funding - Oppose legislation unfairly tying road funding to local decisions on density and affordable housing.

• Mortgage Debt Tax - Support legislation for cancellation of mortgage debt tax.

• Foreclosed Properties - Support non-profits, (i.e., Habitat for Humanity) to acquire and rehabilitate foreclosed properties in blighted areas.

• Group Homes - Support legislation that increases local control over location of community care facilities/group homes.

• Mobile Homes - Support legislation enhancing lives for mobile home residents, including requiring training for pa rk managers , and prohibiting park managers from requiring residents to use a specific dealer or broker.

ECONOMIC DEVELOPMENT
• Economic Development - Support legislation and funding for business-friendly principles to attract new businesses and retain existing businesses.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 26
Menifee Mayor and City Council
January 18, 2023
Page
995 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

• Jobs and Revenue - Support legislation providing tools and incentives necessary for economic development (i.e., jobs, revenue).

• Tax Increment - Support legislation for financing programs encouraging economic development including tax increment financing.

• Impact Fees - Oppose legislation that would inappropriately limit local government authority to impose impact fees.

• Operations/Construction - Support legislation that increases flexibility in the development and building process and streamlines environmental statutes.

Oppose legislation that would result in increased costs for businesses to operate/construct facilities.

• International Sales - Support legislation, including measures that remove barriers, allowing local businesses and industries to sell goods and services internationally.

• Education - Support all attempts to bring higher education and pathway opportunities to the region.

• Base Realignment - Oppose closure of regional military installations.

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
• Funding – Support the preservation of funding for the CDBG Program and increasing the funds available under the program.

• Reporting - Support legislation that would consolidate and streamline the administration and reporting requirements of the Community Development Block Grant Program. Advocate for greater flexibility of local appropriation and use of funds.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 27
Menifee Mayor and City Council
January 18, 2023
Page
996 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

Public Safety
Law enforcement, fire and life
safety, emergency
communications, emergency
services, disaster preparedness,
nuisance abatement, and
animal control services

• Crime Victims - Support legislation and funding to protect crime victims.

• Cost Recovery - Oppose legislation impeding local law enforcement from addressing crime problems and recovering costs resulting from the responsible party.

• Early Release - Oppose legislation for early release of prisoners, including low-risk, serious, and violent of fenders, without sustained funding to ensure adequate post-release supervision.

• Court - Support measures to provide adequate judicial and court services.

• Homeland Security - Support legislation and funding coordinating homeland security programs and trai ning to respond to regional or national threats and adding security measures to protect residents against terrorist activity.

• Immigration - Recognize existing immigration laws and legitimate amnesty , and support legislation solving the immigration crisis that adversely impacts local jurisdictions.

• Federal Worker Eligibility - Support efforts to improve the Federal Worker Eligibility Verification process to ensure employees are hired by businesses in the most efficient manner possible.

• Peace Officer Compensation - Support legislation allowing local control of peace officers’ salaries and benefits.

• Community Oriented Policing - Oppose legislation that decreases funding to Community Oriented Policing efforts.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 28
Menifee Mayor and City Council
January 18, 2023
Page
997 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

• Fire and Life Safety Codes - Support legislation increasing local control in adopting Fire and Life Safety Codes and development of the national fire code in an open, consensus-based process.

• Disaster Preparedness - Support disaster and civil defense master mutual aid agreements and disaster relief and emergency assistance act.

Revenue &
Taxation
Finance, tax reform, general and
special revenue at federal, state,
and local levels

REVENUE
• Revenue Protection - Support legislation to protect revenue sources and to strengthen and expand ongoing revenue and independence for the City, including greater local control over how funds are expended . Oppose legislation that undermines or preempts local authority over local taxes and fees.

• City Revenue Sources - Oppose legislation seizing City tax funds or negatively changing revenue allocations to cities, such as property tax, street maintenance funds, vehicle license fees , sales tax, public safety augmentation funds, community-oriented policing (COPS) grants, gas tax, transient occupancy tax, and Community Block Grant funding.

• Funding - Support legislation and funding for dedicated revenue sources at all governmental levels, including funding for public facilities, such as libraries and open spaces. Allow the City to compete for its fair share of grants and funding programs. Support federal legislation requiring states to distribute federal pass - through funds in an equitable manner to local government.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 29
Menifee Mayor and City Council
January 18, 2023
Page
998 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

• Mandates - Support full cost reimbursement to the City for all federal, state and county mandates. Oppose legislation imposing unfunded State mandates.

• Hiring Tax Credits - Oppose legislation eliminating hiring tax credits in Enterprise Zones.

• Municipal Bonds - Oppose legislation reducing or removing tax-exempt status of municipal bonds.

TAXATION
• Proposition 13 - Oppose legislation weakening taxpayer protections or to raise tax revenue at the expense of residential or business community.

• Tax-Exempt Debt - Oppose restrictions or limitations on the City to use tax-exempt debt or tax increment financing for the purchase or construction of public improvements.

• Voter-Approved Taxes - Support legislation preserving and enhancing the City’s ability to seek voter approval for taxes, (i.e., transactions and use (sales) tax).

• Information Sharing - Support participation in local government information sharing with Franchise Tax Board.

Transportation,
Communications
& Public Works
Transportation, construction,
telecommunications, and public
works.

• Transit - Support legislation and funding encouraging the use of non-motorized transportation and transit, including rail line, busses, reverse commute program, electric vehicles, transportation service and rapid transit.

• Funding - Support legislation to protect dedicated revenue sources for transportation and transit and insure equitable distribution of funding with consideration of population growth. Support legislation providing additional funding opportunities, increasing local flexibility in allocation of transportation funds, and enhancing the City’s ability to finance transportation/transit programs, facilities and use of design-build standards.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 30
Menifee Mayor and City Council
January 18, 2023
Page
999 of 1063

CITY OF MENIFEE

LEGISLATIVE PLATFORM

• Taxes/Fees - Oppose measures to raise Federal or State revenues for transportation with fees, such as miles-traveled.

COMMUNICATIONS
• Telecommunications - Support legislation to retain existing fees on telecommunications services. Oppose legislation limiting local authority for telecommunications infrastructure.

• Broadband - Support grants and other funding opportunities that will help the City implement its Broadband Master Plan and Smart City key priorities.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 31
Menifee Mayor and City Council
January 18, 2023
Page
1000 of 1063

CITY OF MENIFEE
City Council Policy
Policy Number: CC-25
Approving Authority:

City Council
Subject

LEGISLATIVE PROGRAM
Effective Date:

August 5, 2020

1. PURPOSE
The primary purpose of a Legislative Platform is to adopt official City positions on matters affecting the City at the local, regional, State and Federal levels. The approved platform allows City staff and legislative advocates to address and track issues in a timely manner pursuant to established procedures. The Legislative Program consists of:
•Legislative Platform
•Policy & Procedures to coordinate advocacy efforts to influence results •Legislative History
•Legislative Tracking

2. BACKGROUND
The platform was developed based on Menifee’s historical actions (resolutions, minutes, letters) on legislative issues, policies and guiding principles from the League of California Cities, and departmental review.

3. POLICY
The Legislative Platform is comprised of seven departmental-like categories which incorporate related topics. The general policy statements reflect support or opposition on issues impacting the City’s ability to govern and provide essential municipal and community services.

4. PROCEDURE
The Legislative Program provides a process enabling the City Council, and staff to act timely in response to legislative proposals, utilizing the Legislative Platform and Legislative History.

Ideally, the Legislative Platform will be reviewed regularly.

Legislation at both the State and Federal levels may be supported or opposed based on the approved Legislative Platform. In addition, positions of “Support if Amended” and “Oppose unless Amended” may be conveyed if concurrent with the Platform. The City may also provide a letter of concern or interest without taking a formal position on the legislation.

The City Manager will review requests to take positions on an issue. For approved requests in accordance with the Platform, a communication will be prepared for the Mayor’s approval and signature. Requests inconsistent with the Platform or silent on issues will be placed on a City Council agenda for consideration.

Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 32
Menifee Mayor and City Council
January 18, 2023
Page
1001 of 1063

City of Menifee Policy CC-25

Page 2 of 2 ends

LEGISLATIVE PROGRAM
______________________________________________________________________________

5. ROLES AND RESPONSIBILITIES
City staff will coordinate formal action through the City Council. In addition, staff will administer the Legislative Program by performing the following functions:
•Obtain input from City staff to identify matters of legislative importance and develop positions on legislation.
•Identify and develop positions for formal action by the City Council and communicate matters of legislative importance to the City Council through periodic updates. •Review positions and analysis done by the League of California Cities, National League of Cities, legislative advocates, and local government/professional associations relative to positions.
•Track key legislation through the process.
•Convey the City’s positions to Federal, State and County legislators and legislative staff. •Draft and amend legislative proposals concerning the City. •Actively engage and stay apprised of legislative trends and upcoming legislation.

Revision History
Revision
No.

Date
Approved Approved By: Comments
0 8/05/2020 City Council
_________________________________
Bill Zimmerman, Mayor
Item Title: 12.3
City of Menifee Legislative Platform
Item Page Number: 33
Menifee Mayor and City Council
January 18, 2023
Page
1002 of 1063

CITY OF MENIFEE
SUBJECT: Veterans Recognition Events and Advisory Committee MEETING DATE: January 18, 2023
TO: Mayor and City Council
PREPARED BY: Mariana Mitchell, Community Services Manager REVIEWED BY: Jonathan Nicks, Community Services Director APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review and discuss the options for recognizing Vietnam and Korean War Veterans, and the potential formation of a Veterans Advisory Committee.

DISCUSSION
On May 4, 2022, City Council requested staff to research the South Korean “Ambassador for Peace” Medal Program. This commemorative medal is an expression of appreciation from the Korean government to the United States service men and women who served in the Korean War.

Staff have reached out to the Los Angeles office of the South Korean consulate for additional information and have obtained the official application necessary for awarding the medal to those who qualify. Staff are working with VFW Post 1956 of Menifee to gather applications and are working towards scheduling a date for presenting the medals in 2023.

On October 5, 2022, City Council requested staff to explore the option of making the Welcome Home Vietnam Veterans event that was held on March 30, 2022, an annual recurring event. Staff have reviewed the request and are open to integrating this event into the annual special event calendar with 2023 presenting a unique opportunity. Miller Jones Memorial Park and Mortuary will be hosting “The Wall That Heals”, which is a Vietnam Veterans Memorial replica wall and education center, from April 6 – 9, 2023. City staff are working closely with Miller Jones staff to assist with coordinating this regional event and propose integrating the annual Welcome Home Vietnam Veterans event into the opening ceremony.

On October 19, 2022, City Council requested the opportunity to discuss the potential formation of a Veterans Advisory Committee. In the past, the Community Services Department hosted informal meetings for local veteran’s groups and service organizations to share resources.

However, during the many closures related to the COVID pandemic, this group moved toward email as the primary form of communication. Interactions have slowed and most groups have Item Title: 12.4
Veterans Recognition Events and Advisory Committee
Item Page Number: 1
Menifee Mayor and City Council
January 18, 2023
Page
1003 of 1063

City of Menifee Staff Report
Veterans Recognition and Advisory Committee
January 18, 2023

Page 2 of 2 ends

1 3
2 5
either integrated into the regular Community Partners meeting hosted by the Community Services Department; or have become involved in specific veteran’s event committees.

STRATEGIC PLAN OBJECTIVE
Accessible and Interconnected Community

FISCAL IMPACT
Potential events associated with the South Korean “Ambassador for Peace” Medal and an annual Welcome Home Vietnam Veterans event can be absorbed in the Community Services Fiscal Year 2022/2023 approved Budget. However, the implementation of a formal Veterans Advisory Committee may require an additional appropriation dependent upon City Council direction.

ATTACHMENTS
None.

Item Title: 12.4
Veterans Recognition Events and Advisory Committee
Item Page Number: 2
Menifee Mayor and City Council
January 18, 2023
Page
1004 of 1063

CITY OF MENIFEE
SUBJECT: Procedures and Policies Applicable to City Council Meetings MEETING DATE: January 18, 2023
TO: Mayor and City Council
PREPARED BY: Jeffrey Melching, City Attorney
REVIEWED BY: Rochelle Clayton, Assistant City Manager
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review and discuss existing City Council procedures and policies as applicable to City Council meetings; and

2. Provide direction (if any) regarding revisions and updates to existing key City Council procedures and policies; and

3. Approve administrative corrections to existing City Council Code of Ethics; and

4. Adopt and approve City of Menifee’s Policy No. CC-04, Social Media for Public Officials.

DISCUSSION
As the City Council begins its new term it is appropriate to review the existing policies and procedures that guide the conduct of City business. In addition to providing a forum to increase awareness of the rules and procedures, this item allows the City Council to evaluate whether any changes or updates are necessary.

In addition to reviewing and evaluating existing policies, this agenda item seeks City Council’s review of a proposed new policy that specifically applies to public officials’ (including Councilmembers’) use of social media. As explained in greater detail below, the policy seeks to balance legal, policy, and practical considerations relating to the use of social media, so that public officials have a clear and uniform set of standards.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 1
Menifee Mayor and City Council
January 18, 2023
Page
1005 of 1063

City of Menifee Staff Report
Procedures and Policies Applicable to City Council Meetings January 18, 2023

Page 2 of 7 ends

1 3
7 5
Review of Existing Procedures
The applicable policies and procedures are found in three sources: (1) the City Council Code of Ethics, adopted by the Council in July of 2020 (Attachment 1); (2) the Rules of Decorum and Procedures for the Conduct of City Council Meetings, last updated on January 1, 2014 (Attachment 2); and (3) the Municipal Code provisions applicable to the City Council (Attachment 3). Those resources address the following topics:

1.Council-Manager Form of Government: The City’s procedures emphasize that the City Council’s primary role is to set City policy, while the City Manager’s role is “responsible for the efficient administration of all affairs of the City which are under his or her control.” In other words, the City Council establishes the policy direction of the City, and the City Manager is charged with overseeing the implementation of that policy direction.

2.Powers and Authority of the City Council: The City Council has vast power and responsibility to set policy and do all things necessary to protect and advance the general welfare of the residents. Those actions are typically memorialized in an ordinance, a resolution, or a minute action approved by a majority of the City Council.

A vote of a majority of the City Council commits the whole of the City Council and the City to a course of action. No City Council member has the power alone to bind or make decisions for the City as a whole. The Mayor is the official head of the City for all ceremonial purposes, and coordinates with the City Manager in the review of agendas for City Council meetings.

3.City Council Appointments: The City’s adopted procedures describe how the Mayor Pro Tem is selected, how appointments to regional boards and commissions are made, and how advisory bodies to the City Council are formed.

4.Legal and Ethical Standards: The Code of Ethics contains comprehensive guidance on the City’s ethical standards, beginning with the principle that Menifee residents “are entitled to have fair, ethical, and accountable local government.” Among other things, the Code of Ethics affirms City Council members’ responsibility to act in the public interest, refrain from abusive conduct, make sure they are informed on public issues, decide issues based on their merits, and refrain from attending meetings between third parties and City staff (unless invited by City staff or directed by the City Council to do so). The Code of Ethics also reinforces City Council members’ duties to properly disclose and manage conflicts of interest, and to avoid even the appearance of impropriety.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 2
Menifee Mayor and City Council
January 18, 2023
Page
1006 of 1063

City of Menifee Staff Report
Procedures and Policies Applicable to City Council Meetings January 18, 2023

Page 3 of 7 ends

1 3
7 5

5.Decorum: The Decorum Policy is structured to ensure the City Council’s business is conducted in an orderly and professional manner.
➢Council Decorum: It requires that City Council members be polite, respectful, and courteous to each other, City staff, and members of the public. ➢Council Communications: It describes how City Council members must communicate during meetings, e.g., City Council members wishing to speak should request the floor by being recognized by the Presiding Officer before speaking ....” It describes how City Council members must respond to information and comments from the public both during and outside of public meetings.
➢Staff and Public Conduct: It also sets rules and expectations for the conduct of City staff and members of the public.
➢Voting Process and Procedural Issues: It establishes the process for making a motion and conducting a roll call vote. It also addresses multiple procedural issues, such as the effect of silence (it is an affirmative vote), the timing and process for a motion to reconsider, the effect of a tie vote, and the rules for determining if a quorum exists. In addition, the Rules of Decorum set Robert’s Rules of Order (Newly Revised) as the guide for the conduct of City Council meetings.
➢Agenda Order and Structure: The Rules of Decorum provide the order of issues presented on the agenda, explain the usage of the consent calendar and City Council member comments portions of the agenda, and provides basic guidance on closed sessions.
➢Formulation of Meeting Agendas: The Rules of Decorum and the City Council Code of Ethics both contain the policy for placing future agenda items on the City Council agenda. In summary, the City Manager has the primary responsibility for placing matters on the City Council agenda, but two members of the City Council may also request that an item be added.

City staff has identified the need for an administrative correction to section

6.4.2.1.2 of the City Council Code of Ethics, so that it will align with the description of the City Council agendizing process that appears in the Rules of Decorum. Specifically, that section would be replaced with two sections as follows:

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 3
Menifee Mayor and City Council
January 18, 2023
Page
1007 of 1063

City of Menifee Staff Report
Procedures and Policies Applicable to City Council Meetings January 18, 2023

Page 4 of 7 ends

1 3
7 5

6.4.2.1.2. All regular City Council Agendas shall include an item entitled “Future Agenda Requests from Councilmembers.” Members of the City Council shall generally use this opportunity to request items be placed on the agenda. If a member of the City Council requests an item to be placed on the agenda and receives the support of at least one other member of the Council, that item will be placed on a future agenda through the agenda setting process.

6.4.2.1.3. In the event that a member of the City Council wishes to request an item be placed on the Agenda outside the regular City Council agenda process, that request shall be communicated to the City Manager for consideration and scheduling in accord with the agenda setting process described in the Rules of Decorum.

6.Reports of Violations: The existing policies create an obligation to report violations and establish a procedure for addressing and responding to those reports.

7.Relationship Between City Council and City Staff: City staff serves the City Council as a whole, through the authority of the City Manager. To that end, existing policies forbid any City Council request for City staff or legal resources that would exceed one hour. Requests requiring larger commitments of time and resources must be agendized and approved by the City Council. Likewise, a City Council member may not direct City staff to initiate an action, change a course of action, or prepare any report.

8.Handling of Confidential Information: City Council members may not disclose confidential and privileged information, nor may they retain confidential materials provided during closed sessions.

9.Representing the City: City Council members may use their official title only when conducting City business, for information purposes, or as an indication of background and expertise. If any City Council member seeks to prepare a letter, the City Manager must authorize it.

10.Conduct of Meetings: All meetings must be conducted in accordance with the Ralph M. Brown Act, which contains multiple provisions to ensure that the proposed business of the City Council is disclosed in advance (on a published agenda) and discussed and decided in public.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 4
Menifee Mayor and City Council
January 18, 2023
Page
1008 of 1063

City of Menifee Staff Report
Procedures and Policies Applicable to City Council Meetings January 18, 2023

Page 5 of 7 ends

1 3
7 5

11.City Council Compensation and Benefits: The compensation provided to the City Council is established by statute (Government Code Section 36516) which sets a starting salary based upon City population and allows for an annual increase of 5% per calendar year. The salary of the Mayor has been established by a voter initiative process approved on November 4, 2014, and is set at $100 per month more than the compensation provided for members of the City Council. If the compensation is increased for the members of the City Council, the salary of the Mayor will increase by the same amount. Applying the Government Code formula would yield a maximum increase of $260 per month, to a total of $910 per month for City Council members, and $1,010 for the Mayor.

The above issues merely summarized to emphasize key items of City Council and public interest. City staff will make a further presentation on the existing policies and procedures and be available to answer any questions or pursue any updates or amendments desired by the City Council.

Consideration and Adoption of a Social Media Policy
Both the City (typically through the Public Information Officer) and public officials use social media to communicate with members of the public. The City uses social media to disseminate information about City business, and to express the official positions of the City. Public officials also use social media to connect with their constituents, and to discuss positions on particular issues.

The connection between a City public official and the City often causes members of the public to attribute public official’s communications on social media to the City. City public officials also have access to sensitive or confidential City information and records by virtue of their position, which may damage the City or other persons if disclosed outside of legal avenues.

From a legal standpoint, public officials are subject to laws and restrictions not applicable to the public at large, including the First Amendment related to freedom of speech and the Ralph M. Brown Act related to public meetings. These laws prohibit or otherwise restrict certain social media use.

To account for these legal and practical considerations, and to protect the City’s interest in protecting the integrity of the information posted on social media attributed to the City, “City of Menifee Policy No. CC-04, City Social Media for Public Officials” (Policy) has been formulated for Council review, consideration, and adoption. If approved, public officials would be responsible for their own compliance with the Policy.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 5
Menifee Mayor and City Council
January 18, 2023
Page
1009 of 1063

City of Menifee Staff Report
Procedures and Policies Applicable to City Council Meetings January 18, 2023

Page 6 of 7 ends

1 3
7 5
In summary, the key provisions of the Policy are as follows:

1.Applicability: The Policy applies to City Council members, and to all commission and committee members that are subject to the Ralph M. Brown Act’s open meeting requirements.

2.Use of City Assets: The Policy authorizes public officials to use City assets such as email accounts, logos, staff time, business expense budget, equipment, and subscriptions for social media related to a public official’s official capacity with the City.

These City assets may not be used for personal, campaign, advertisement, or other purposes. Public officials are encouraged to utilize the City’s subscription to ArchiveSocial for record capturing on social media related to City business.

3.Social Media Posts Related to City Business: The Policy requires a disclaimer to be included on posts related to City business, which specifies that the content posted does not represent the official position of the City. The disclaimer is not required for content which accurately reflects the City’s official position.

4.Confidentiality: The Policy prohibits the disclosure of confidential information and records obtained through a public official’s position with the City. Public officials are further prohibited from using such information for private interests. Members of the public should be directed to the City Clerk and the California Public Records Act process to access City records.

5.Legal Compliance: The Policy reinforces public officials’ obligation to comply with applicable law, including the First Amendment of the United States Constitution and the Ralph M. Brown Act. These two laws are broadly described in the Policy to assist public officials in complying with those requirements. In summary, when public official accounts address City business, the First Amendment applies which, among other things, severely restricts the ability to block users or delete comments based on viewpoint or perspective. So rather than deleting comments or posts, public officials are encouraged to report comments to the underlying social media platform when those comments violate the terms of use of that platform. Questions from public officials regarding whether a particular comment or post can or should be removed should be directed to the City Attorney.

The Ralph M. Brown Act imposes additional requirements on public officials use of social media. It prohibits a public official from communicating on City business with a majority of the legislative body on which that public official sits. This can involve as little as “liking” a post related to matters within the jurisdiction of that public official’s legislative body. To assist in navigating these issues, the Policy outlines examples of Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 6
Menifee Mayor and City Council
January 18, 2023
Page
1010 of 1063

City of Menifee Staff Report
Procedures and Policies Applicable to City Council Meetings January 18, 2023

Page 7 of 7 ends

1 3
7 5
permitted and prohibited social media use under the Ralph M. Brown Act.

Social media used in an official capacity is also subject to the California Public Records Act and records-keeping obligations. As noted, to ensure compliance with this obligation, the Policy encourages the use of ArchiveSocial for record capturing on social media related to City business.

In addition to the foregoing summary, the full Policy is provided as Attachment 4.

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

FISCAL IMPACT
There is no fiscal impact associated with the review of the policies and procedures applicable to the City Council. If the base salary for the members of the City Council is increased to the maximum allowed under the provisions of Government Code Section 36516, the monthly salary for each member will increase by $260 per month for a revised monthly total of $910 for each member of the City Council and $1,010 for the Mayor. This equates to an annual increase of $15,600 per year once the change takes effect. Under California law, such a change could not go into effect until December of 2024 following certification of the next municipal election when new members take office. If an increase is approved, a budget appropriation will be included in the Fiscal Year 2023/2024 Budget.

ATTACHMENTS

1. City Council Code of Ethics

2. Policy No. CC-01 - Rules of Decorum and Procedures

3. Menifee Municipal Code Chapter 2.04 (City Council)

4. Policy No. CC-04 - Social Media for Public Officials Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 7
Menifee Mayor and City Council
January 18, 2023
Page
1011 of 1063

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020

CITY OF MENIFEE

ADOPTED
JUL Y 15, 2020
CITY

COUNCIL

CODE OF
ETHICS
Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 8
Menifee Mayor and City Council
January 18, 2023
Page
1012 of 1063

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 9
Menifee Mayor and City Council
January 18, 2023
Page
1013 of 1063

1Table of Contents

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020
Table of Contents Page
CHAPTER 1—FORM OF GOVERNMENT

1.1 Form of Government ........................................................................................................2 CHAPTER 2—COUNCIL POWERS AND RESPONSIBILITIES

2.1 City Council Generally .....................................................................................................3

2.2 Mayor and Mayor Pro Tem—Appointment, Power, and Duties .............................3

2.3 Council Actions ..................................................................................................................4

2.4 Councilmember Committees .........................................................................................4

2.5 Establishment and Appointment of Council Advisory Bodies ..............................5 CHAPTER 3—LEGAL AND ETHICAL STANDARDS

3.1 Preamble .............................................................................................................................6

3.2 Public Interest ....................................................................................................................6

3.3 Conduct ...............................................................................................................................6

3.4 Conflict of Interest .............................................................................................................7

3.5 Compliance and Enforcement—All Rules .................................................................15

3.6 AB 1234—Required Ethics Training ............................................................................16 CHAPTER 4—COMMUNICATIONS

4.1 Written Communications ................................................................................................ 17

4.2 Request for Staff Resources ..........................................................................................17

4.3 Relationship/Communications with Staff ...................................................................17

4.4 Council Relationship/Communication with Council Advisory Bodies ...............18

4.5 Handling of Litigation and Other Confidential Information ..................................18

4.6 Representing an Official City Position .......................................................................18

4.7 Quasi-Judicial Role/Ex Parte Contacts ......................................................................19

4.8 No Attorney-Client Relationship ..................................................................................19 CHAPTER 5—COUNCIL ADVISORY BODIES

5.1 Commissions, and Committees Generally ..............................................................20

5.2 Commission, and Committee Organization and Conduct................................... 20

5.3 Commission, and Committee Appointments ...........................................................21

5.4 Commissions, and Committees—Vacancy of Office ..............................................21

5.5 Commissions, and Committees - Removal ...............................................................21 CHAPTER 6—MEETINGS

6.1. R alph M. Brown Act .......................................................................................................22

6.2 Regular Meetings ...........................................................................................................22

6.3 Special and Emergency Meetings .............................................................................22

6.4 Meeting Agendas ...........................................................................................................22

6.5 Agenda Packets .............................................................................................................23 CHAPTER 7—COUNCIL FINANCIAL MATTERS

7.1 Compensation ................................................................................................................. 24

7.2 Benefits .............................................................................................................................24

7.3 City Council Budget and Expenses ...........................................................................24 Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 10
Menifee Mayor and City Council
January 18, 2023
Page
1014 of 1063

2 Chapter 1 - Form of Government
CHAPTER 1—FORM OF GOVERNMENT

1.1 Form of Government

1.1.1 The City of Menifee municipal government operates under a council-manager form of government as established by the City Municipal Code.

1.1.2 Under this form of government, the Council provides legislative direction, sets City policy and monitors its execution by City staff. The City Manager serves as the City’s chief administrative officer and is responsible for directing the day-to-day operations of the City.

1.1.3 The key provisions that outline City of Menifee’s council-manager form of government are found in Chapter 2.08 of the City Municipal Code.
“The City Manager shall be the administrative head of the government of the city under the direction and control of the City Council, except as otherwise provided in this chapter. The City Manager shall be responsible for the efficient administration of all affairs of the city which are under his or her control.” The City Manager shall be expected and shall have the power as stated in section 2.08.060 of the Menifee Municipal Code.

Specifically, the Menifee Municipal Code includes the following provisions:

1.1.3.1 The City Manager shall appoint, remove, promote and demote any and all officers and employees of the city, except elected officers and the City Attorney, and specifically including the City Clerk and the City Treasurer (although the City Manager may serve in these positions as well), subject to all applicable personnel rules and regulations which may be adopted by the city.

1.1.3.2 The City Council and its members shall deal with the administrative services of the city only through the City Manager, except for the purpose of inquiry, and neither the City Council nor any member thereof shall give orders to any subordinates of the City Manager.

1.1.3.3 For purposes hereof, INQUIRY means any and all communications short of giving orders, directions or communications short of giving orders, directions or instructions to any member of the administrative staff.

NOTE: See Chapter 4, Communications, for additional information regarding communications with staff.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 11
Menifee Mayor and City Council
January 18, 2023
Page
1015 of 1063

3Chapter 2 - Council Powers and Responsibilities

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020
CHAPTER 2—COUNCIL POWERS AND RESPONSIBILITIES

2.1 City Council Generally

2.1.1 The City Council has the power, in the name of the City, to do and perform all acts and things appropriate to a municipal corporation and the general welfare of its inhabitants, which are not specifically prohibited by the constitution, the City Municipal Code, or State or Federal laws.

2.1.2 The Council acts as a body. Policy is established by majority vote. A decision of the majority binds the Council to a course of action. The Council majority may be a majority of the quorum of the Council.

2.1.3 No Councilmember has extraordinary powers beyond those of other members (except as may otherwise be provided in State law). All members, including the Mayor, have equal powers.

2.1.4 No member of the Council is permitted to hold any other City office or City employment (except as may otherwise be provided in the City Municipal Code).

2.2 Mayor and Mayor Pro Tem—Appointment, Power, and Duties

2.2.1 The selection of Mayor Pro Tem occurs annually in December, during the Council’s “Reorganization” meeting by majority vote of the City Council.

2.2.2 The Mayor Pro Tem is responsible to select the Annual Initiative (or theme) to be included in the City’s annual budget book, displayed at the City’s annual Fourth of July event, and used throughout the fiscal year in City communications, press, and events.

2.2.3 The Mayor is the presiding officer of the City Council. In the Mayor’s absence, the Mayor Pro Tem shall perform the duties of the Mayor.

2.2.4 The Mayor, in partnership with the Council District Representative, is the official head of the City for all ceremonial purposes.

2.2.5 The Mayor may perform such other duties consistent with the mayoral office as may be prescribed by the City Municipal Code or as may be imposed by the Council.

2.2.6 The Mayor does not possess any power of veto.

2.2.7 The Mayor, or Council designee, coordinates with the City Manager in the review of agendas for meetings of the City Council. The complete agenda setting process is outlined in City Council Policy No. 1: Rules of Decorum and Procedure for the Conduct of City Council Meetings.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 12
Menifee Mayor and City Council
January 18, 2023
Page
1016 of 1063

4 Chapter 2 - Council Powers and Responsibilities

2.2.8 The Mayor Pro Tem serves at the pleasure of the Council and can be replaced at any time by a majority vote of the Council.

2.3 Council Actions

2.3.1 Legislative actions by the City Council can be taken by means of ordinance, resolution, or minute action duly made and passed by the majority (unless otherwise provided).

2.3.2 Public actions of the Council are recorded in the minutes of the City Council meeting. The City Clerk is required to make a record only of business actually passed upon by a vote of the Council and is not required to record any remarks of Councilmembers or of any other person, except at the special request of a Councilmember, with the consent of the Council.

2.3.3 Actions of the Council concerning confidential property, personnel, and/or legal matters of the City are to be reported consistent with State law.

2.4 Councilmember Committees (Refer to City Council Policy No. 2 – Regional Boards and Regional Commissions – Assignments and Reporting.)

2.4.1 The City Council may organize itself into standing and/or special/ad hoc committees of the Council to facilitate Council review and action regarding certain matters referred to them by the City Council or in accordance with City Council Policy No. 2, City Council Standing Committees, Regional Boards and Regional Commissions – Assignments and Reporting.

2.4.2 All work undertaken by a Councilmember committee must originate with the Council or as permitted under City Council Policy No. 2. All actions of committees shall be reported to the Council.

2.4.3 The Council may create or dissolve standing committees at any time by the affirmative vote of a majority of the Council.

2.4.4 The Mayor annually appoints members to standing committees at the annual Council Reorganization in December.

2.4.5 The Council or the Mayor may create special or ad hoc committees. The Mayor appoints members to special or ad hoc committees.

2.4.6 The Council may dissolve special or ad hoc committees.

2.4.7 If permitted by the Ralph M. Brown Act, other members of the Council not assigned to a committee may attend meetings of a committee, as an observer, however, they shall be seated with the audience and may not participate in any manner or address the committee.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 13
Menifee Mayor and City Council
January 18, 2023
Page
1017 of 1063

5Chapter 2 - Council Powers and Responsibilities

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020

2.4.8 If an absence is anticipated on a committee and that absence may impede the work of the committee, the assigned alternate member will attend in the committee member’s place. If the alternate member is not available, the committee chair or other member may request that the Mayor designate another member of the Council to attend for the absent member and serve as an alternate member of the committee, provided that the member’s attendance, in the opinion of the City Attorney, will comply with the Brown Act. The term for service by the alternate member will be the term designated in the appointment, or for one meeting, if no term is specified.

2.5 Establishment and Appointment of Council Advisory Bodies

2.5.1 The Menifee Municipal Code establishes a Planning Commission and a Parks, Recreation and Trails Commission.

2.5.2 The City Council may establish by ordinance or resolution, commissions and committees to assist the Council in making its policy decisions.

2.5.3 The rules of procedure and code of conduct that govern the City Council apply with equal force to all Commissions and Council advisory bodies.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 14
Menifee Mayor and City Council
January 18, 2023
Page
1018 of 1063

6 Chapter 3 - Legal and Ethical Standards
CHAPTER 3—LEGAL AND ETHICAL STANDARDS

3.1 Preamble
The residents and businesses of Menifee are entitled to have fair, ethical, and accountable local government.

Such a government requires that public officials:
• Comply with both the letter and the spirit of the laws and policies affecting operations of the government; • Be independent, impartial, and fair in their judgment and actions; • Use their public office for the public good, not for personal gain; and • Conduct public deliberations and processes openly, unless legally confidential, in an atmosphere of respect and civility.

To this end, the Menifee City Council has adopted a code of ethics to encourage public confidence in the integrity of local government and its fair and effective operation.

This City Council code of ethics shall reside in two documents—the City Council Code of Ethics and the City Council Personal Code of Ethics. The City Council Code of Ethics and the Personal Code of Ethics shall not be interpreted to conflict with other rights and responsibilities of public officials set forth in this code or Federal, State, or local law. The City Council Code of Ethics shall be considered to be the definitive document relating to ethical conduct by City of Menifee Councilmembers. The Personal Code of Ethics shall be considered a summary of the full City Council Code of Conduct.

3.2 Public Interest

3.2.1 Recognizing that stewardship of the public interest must be their primary concern, Councilmembers shall work for the common good of the people of Menifee and not for any private or personal interest. Councilmembers must endeavor to treat all members of the public and issues before them in a fair and equitable manner.

3.2.2 Councilmembers shall comply with the laws of the nation, the State of California, and the City in the performance of their public duties. These laws include, but are not limited to: the United States and California constitutions; the City of Menifee Municipal Code; laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities, and open processes of government; and City ordinances and policies.

3.3 Conduct

3.3.1 Councilmembers shall refrain from abusive conduct, personal charges, written, verbal, or public, and continuous attacks upon the character or motives of other members of the City Council, commissions, committees, City Manager, City Manger’s staff, City Attorney, or the public.

3.3.2 Councilmember duties shall be performed in accordance with the processes and rules of order established by the City Council.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 15
Menifee Mayor and City Council
January 18, 2023
Page
1019 of 1063

7Chapter 3 - Legal and Ethical Standards

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020

3.3.3 Councilmembers shall inform themselves on public issues, listen attentively to public discussions before the body, and focus on the business at hand.

3.3.4 Council decisions shall be based upon the merits and substance of the matter at hand.

3.3.5 It is the responsibility of Councilmembers to publicly share substantive information that is relevant to a matter under consideration that they have received from sources outside of the public decision-making process with all other Councilmembers and the public prior to taking action on the matter.

3.3.6 When needed, at the discretion of the City Manager, appropriate City staff should be involved when Councilmembers meet with officials from other agencies, jurisdictions, or any project applicant to ensure proper staff support as needed and to keep staff informed.

3.3.7 Councilmembers shall not attend internal staff meetings or meetings between City staff and third parties unless invited by City staff or directed by Council to do so.

3.3.8 Policy Role

3.3.8.1 Councilmembers shall respect and adhere to the council- manager structure of Menifee City government as provided in State law and the City Municipal Code.

3.3.8.2 Councilmembers shall support the maintenance of a positive and constructive environment for residents, businesses, and City employees.

3.3.9 Implementation

3.3.9.1 Ethics standards shall be included in the regular orientations for City Council candidates.

Councilmembers entering office and upon reelection to that office shall sign a City Council Personal Code of Ethics statement (Attachment 1) affirming they have read and understand this Menifee City Council Code of Ethics.

3.4 Conflict of Interest

3.4.1 In order to assure their independence and impartiality on behalf of the public good, Councilmembers are prohibited from using their official positions to influence government decisions in which they have a financial interest or where they have an organizational responsibility or a personal relationship that would present a conflict of interest under applicable State law.

3.4.2 In accordance with State law, Councilmembers must file annual written disclosures of their economic interests.

3.4.3 Councilmembers shall not take advantage of services or opportunities for personal gain by virtue of their public office that are not available to the public in general.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 16
Menifee Mayor and City Council
January 18, 2023
Page
1020 of 1063

8 Chapter 3 - Legal and Ethical Standards

3.4.4 Councilmembers shall respect and preserve the confidentiality of information provided to them concerning the confidential matters of the City. They must neither disclose confidential information without proper legal authorization nor use such information to advance the personal, financial, or private interests of themselves or others.

3.4.5 City Councilmembers should avoid any action that could be construed as, or create the appearance of, using public office for personal gain, including use of City stationery or other City resources to obtain or promote personal business.

3.4.6 Public resources not available to the general public (e.g., City staff time, equipment, supplies, or facilities) shall not be used by Councilmembers for private gain or personal purposes.

3.4.7 In keeping with their role as stewards of the public interest, Councilmembers shall not appear on behalf of the private interests of a third party before the City Council or any commission, or committee or proceeding of the City, except as permitted by law.

3.4.8 To the best of their ability, Councilmembers shall represent the official policies and positions of the City Council. When presenting their personal opinions or positions publicly, members shall explicitly state they do not represent the Council or the City.

3.4.9 City of Menifee City Municipal Code Provisions

3.4.9.1 Financial Interests in City Contracts Prohibited.

No officer or employee of the City shall become financially interested except by testate or intestate succession, either directly or indirectly, in any contract, sale, purchase, lease, or transfer of real or personal property to which the City is a party or be employed by any public service corporation regulated by or holding franchises in the City.

3.4.9.2 Nepotism.

Consistent with Human Resources Policy HR-15 (Nepotism) and Section 11 of the Personnel Rules (Relatives Working for the City), no person who is a relative of any City Council Member, City Commissioner shall be appointed to a position within the City organization. For these purposes a “relative” is someone related by blood or marriage within the second degree (i.e., parent, child, brother, sister, mother, father, grandchild, grandparent, uncle, aunt) to a City Council Member or City Commissioner.

3.4.9.3 Political Activities Prohibited; Discrimination.

This provision provides that:

1. Councilmembers shall not ask employees to take an active part in any municipal or other political campaign, while in uniform or during the employee’s working hours.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 17
Menifee Mayor and City Council
January 18, 2023
Page
1021 of 1063

9Chapter 3 - Legal and Ethical Standards

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020

2. No employee shall Councilmembers shall not seek or accept contributions for or against a candidate or issue from employees, while they are in uniform or during the employee’s work hours..

3. Councilmembers shall not ask an employee to seek or accept signatures to any petition for or against any such candidate or issue during his or her work hours.

4. No person in the classified service shall be employed, promoted, demoted, or discharged or in any way favored or discriminated against because of political opinions or affiliations or because of race or religious belief.

5. For purposes of this section, the term “employee” shall include contract employees and consultants who function as City employees.

3.4.10 Menifee City Code Provisions

3.4.10.1 Use of City Property—Limited to Lawful Business of City.

No person or persons other than City officials or employees shall use any City-owned equipment, tools, or paraphernalia other than for the purpose of conducting the lawful business of the City.

3.4.10.2 Use of City Property for Private Purposes by City Official, Employee, etc.

No City official, City employee, or other person shall borrow, take, or remove any City-owned equipment, tools, or paraphernalia for private use.

3.4.10.3 Use of City Property—Loan, etc., by City Official, Employee, etc.

No City official, City employee, or any other person shall lend, give, or transfer possession of such City-owned equipment, tools, or paraphernalia to any other City official, employee, or any other person with knowledge that the same shall be used for private purposes.

3.4.11 California State Law Regarding Conflicts
Four key areas of California State law regulate the ethics of public officials.

3.4.11.1 Constitutional prohibitions
State law strictly forbids elected and appointed public officials from accepting free or discounted travel from transportation companies. The penalty for a violation includes the forfeiture of office.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 18
Menifee Mayor and City Council
January 18, 2023
Page
1022 of 1063

10 Chapter 3 - Legal and Ethical Standards

3.4.11.2 Contractual conflicts of interest
This prohibition, found in Government Code Section 1090, applies to elected and appointed officials as well as other City staff members. It prohibits the City from entering into a contract if one of its members (i.e., a Councilmember) is financially interested in the contract. If the bar (or prohibition) applies, the agency is prohibited from entering into the contract whether or not the official with the conflict participates or not. In some limited circumstances, officials are allowed to disqualify themselves from participation and the agency may enter into the contract.

Financial interest has been defined to include employment, stock/ownership interests, and membership on the board of directors of a for-profit or nonprofit corporation, among others.

Violations can be charged as a felony. A person convicted of violating Government Code Section 1090 is prohibited from ever holding public office in the State.

3.4.11.3 Political Reform Act—Conflicts of Interest
The Political Reform Act (PRA) was adopted by the voters in 1974 and is the primary expression of the law relative to conflicts of interest (and campaign finance) in California. The Act created the Fair Political Practices Commission (FPPC), a five-member State board which administers the Act.

The Act and the regulations are complex and are continuously subjected to official interpretation. The following synopsis of

key parts of the Act will be helpful in spotting issues; however, the FPPC and/or City Attorney should be consulted for further advice and clarification.

With respect to conflicts of interest, the FPPC has promulgated a regulation which establishes an analysis which assists in determining whether a public official is participating in a government decision in which they have a qualifying financial interest and whether it is reasonably foreseeable that the decision will have a material financial effect on the public official’s financial interest, which is distinguishable from the effect the decision will have on the public generally.

3.4.11.3.1 If a member has a conflict of interest regarding a particular decision, they must refrain from making or participating in the making of a decision unless otherwise permitted by law.

If a public official has a financial interest that gives rise to a conflict of interest, one of the key determinations in the eight-step analysis is to determine whether or not the public official is “participating in” or “making” a governmental decision.

3.4.11.3.1.1 A public official makes a government decision when they do the following:

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 19
Menifee Mayor and City Council
January 18, 2023
Page
1023 of 1063

11Chapter 3 - Legal and Ethical Standards

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020
• Vote on a matter.
• Appoint a person.
• Obligate or commit his or her agency to any course of action.
• Enter into any contractual agreement on behalf of his or her agency.
• Determine not to act in certain circumstances.

3.4.11.3.1.2 A public official participates in making governmental decisions when acting within the authority of his or her position, they do the following:
• Negotiate without significant substantive review with a governmental entity or private person regarding a
governmental decision.
• Advise or make recommendations to the decision-maker either directly or without significant intervening substantive review by:
— Conducting research or an investigation which requires the exercise of judgment on the part of the official
and the purpose of which is to influence governmental
decisions; or
— Preparing or presenting any report, analysis, or opinion orally or in writing which requires the exercise of
judgment on the part of the official and the purpose of which is to influence a governmental decision.

3.4.11.3.2 When a public official has a qualifying financial interest, that official may not use their office or otherwise attempt to influence governmental decisions or make appearances or contacts on behalf of a business entity, client, or customer.

3.4.11.3.3 If an official has a qualifying financial interest, there are nevertheless exceptions which allow a public official to make an appearance before an agency in very limited circumstances. The one that is most commonly encountered is an appearance by a public official to represent himself or herself with respect to a proposed project or change in their neighborhood.

If the appearance is permitted under State law, the appearance is limited to appearing at a public meeting at the podium and addressing a commission, or the City Council. The official may not contact members of staff, the City Manager, or City Attorney, or discuss the matter with other Councilmembers.

A public official with a conflict cannot interact with staff on that issue other than to ask questions, pay fees, etc.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 20
Menifee Mayor and City Council
January 18, 2023
Page
1024 of 1063

12 Chapter 3 - Legal and Ethical Standards

3.4.11.3.4 Political Reform Act—Gifts, etc.

Qualifying gifts of $50 or more must be reported on an official’s Statement of Economic Interest (SEI). In addition, the Political Reform Act imposes a limit on gifts a local official can receive. The dollar amount of the gift limit is modified every odd year to reflect changes in the Consumer Price Index.* There are various exceptions that apply to whether or not a gift is a “qualifying gift.” In some instances, the gift limit does not apply (e.g., wedding gifts); however, the obligation to report the gift typically does apply. • A gift is a payment made by any person of anything of value, whether tangible or intangible, real or personal property, a good or service that provides a personal
benefit to an official when the public official does not provide goods or services of equal or greater value. It can include forgiveness of a debt, a rebate or discount unless the rebate or discount is made through the regular course of business to members of the public.
• There are exceptions to gifts for informational material, gifts that are returned unused, gifts from relatives— close family, campaign contributions, home hospitality, benefits commonly exchanged, reciprocal exchanges, acts of neighborliness, bona fide dating relationship, acts of human compassion, ceremonial role, etc.
• There are specific regulations for how gifts are valued, particularly with the value of tickets and passes and
attendance at dinners and events.
• Gifts can be given to the public agency and they are not charged as gifts to an individual who may use the gift (e.g., tickets) provided the express terms of the appropriate
regulation are satisfied.

3.4.11.3.4.1 Travel Reimbursements
The Political Reform Act contains
extensive regulations on travel
reimbursements; however, travel
payment by one’s own public agency as
part of your official duties are typically
exempt. Reimbursement from other
entities (other than transportation
companies) within California and
outside of California are subject to very
specific rules.
* The gift limit can be found in Government Code §89503.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 21
Menifee Mayor and City Council
January 18, 2023
Page
1025 of 1063

13Chapter 3 - Legal and Ethical Standards

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020

3.4.11.3.4.2 Honoraria

Honoraria are defined as a payment
made in return for giving a speech,
writing an article, or attending a public or
private conference, convention, meeting,
social event, meal, or similar gathering.

Honoraria should be distinguished
from campaign funds that go into that
person’s campaign or to a political party.

Campaign funds cannot be used for
personal benefit.

• Local elected officials or candidates
may not accept honoraria. A
local agency employee who is
required to file a Statement of
Economic Interest (Form 700) may
not accept honoraria from any
source requiring disclosure on a
public official’s SEI. There
are approximately 12 exceptions to
honoraria, including payments made
for comedic, theatrical, and musical
performances; income from bona
fide personal services in connection
with teaching, practicing law, etc.;
and travel, lodging, and subsistence
in connection with a speech, limited
to the day before, day of, and day
after within the United States.
• The exceptions for income from
personal services in connection with
teaching and practicing law do not
apply if the sole or predominant
activity is giving speeches.

3.4.11.3.4.3 Political Reform Act—Mass Mailings

A mass mailing is defined as 200 or
more substantially similar pieces of mail
sent at public or private expense by a
public official within a calendar month.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 22
Menifee Mayor and City Council
January 18, 2023
Page
1026 of 1063

14 Chapter 3 - Legal and Ethical Standards
• Sent at Private Expense—If sent for a
political purpose, sender must place
the name and address on the outside
of the envelope.
• Sent at Public Expense—These
mailings are subject to strict
limitations. For example, the mailing
may not contain the name or pictures
of elected officials except as part
of the standard letterhead, and
within the confines of that regulation
they cannot be of different size
or otherwise emblazoned on the
mailing. Because the rules are
complex, staff should be consulted
for assistance.

3.4.11.3.4.4 Political Reform Act—Enforcement
The FPPC can assess administrative
fines and penalties for violation of
the Act. The District Attorney and the
State Attorney General may prosecute
violators as civil or criminal matters.

Violators may also be removed from
office pursuant to Government Code
Section 3060.

3.4.11.4 Common Law Conflicts of Interest
This is the judicial expression of the public policy against public officials using their official position for private benefit. An elected official bears a fiduciary duty to exercise the powers of office for the benefit of the public and is not permitted to use those powers or their office for the benefit of any private interest. This common law doctrine continues to survive the adoption of various statutory expressions of conflict law.

3.4.11.5 Appearance of Impropriety
When participation in action or decision-making as a public official does not implicate the specific statutory criteria for conflicts of interest; however, participation still does not “look” or “feel” right, that public official has probably encountered the appearance of impropriety.

NOTE: State laws governing conflicts of interest are written to ensure that actions are taken in the public interest. These laws are very complex. Councilmembers should consult with the City Attorney, their own attorney, or the Fair Political Practices Commission for guidance in advance.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 23
Menifee Mayor and City Council
January 18, 2023
Page
1027 of 1063

15Chapter 3 - Legal and Ethical Standards

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020
For the public to have faith and confidence that government authority will be implemented in an even-handed and ethical manner, public officials may need to step aside even though no technical conflict exists. An example is where a long-term nonfinancial affiliation exists between the public official and an applicant or the applicant is related by blood or marriage to the official. For the good of the community, members who encounter the appearance of impropriety should step aside.

3.5 Compliance and Enforcement—All Rules
Councilmembers take an oath when they assume their office in which they promise to uphold the laws of the State of California, the City of Menifee, and the United States of America. Consistent with this oath is the requirement of this Council policy to comply with the laws as well as report violations of the laws and policy of which they become aware.

3.5.1 Any suspected violation or alleged violation by a Councilmember must be reported to the City Attorney. In the case of a City staff member making the report regarding a Councilmember, the report should be made to the City Manager who will then report it to the City Attorney. Upon report, the City Manager and City Attorney will follow the protocols for addressing the violation or alleged violation:

3.5.1.1 If the City Manager and City Attorney agree that the violation or alleged violation is minor in nature, either the City Manager or City Attorney may contact the individual Councilmember and advise the member of the concern and seek to resolve the matter.

3.5.1.2 In implementing the provisions of this section, the City Attorney will be authorized to conduct all inquiries and investigations as necessary to fulfill their obligation.

3.5.1.3 For purposes of Sections 3.5.1.1 and 3.5.1.2, the incident or violation is not minor if it involves the injury or potential injury to any person (e.g., physical, emotional, defamation, harassment, etc.), significant liability to the City or the probability for a repeat occurrence.

3.5.2 Councilmembers wishing to report a suspected violation by a staff member should report it to both the City Manager and City Attorney.

3.5.3 This policy and the protocols set forth are alternatives to any remedy that might otherwise be available or prudent. In order to ensure good government, any individual, including the City Manager and City Attorney, who believes a violation may have occurred is hereby authorized to report the violation to other appropriate authorities.

3.5.4 These same protocols may be utilized for any suspected violations or alleged violations by a Council advisory body member. In addition to those protocols, the City Manager or City Attorney may also refer the matter to the City Council if further action is needed.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 24
Menifee Mayor and City Council
January 18, 2023
Page
1028 of 1063

16 Chapter 3 - Legal and Ethical Standards

3.6 AB 1234—Required Ethics Training
AB 1234 requires elected or appointed officials who are compensated for their service or reimbursed for their expenses to take two hours of training in ethics principles and laws every two years. It is the City’s policy to emphasize the importance of ethics in government and although not required, it is highly encouraged that all advisory body members, including Committees and Commissions, adhere to the same requirements. The training must occur within two months of assuming office and be renewed within two months of the expiration of the current certificate.

The training must cover general ethics principles relating to public service and ethics laws including:
• Laws relating to personal financial gain by public officials (including bribery and conflict of interest laws); • Laws relating to office-holder perks, including gifts and travel restrictions, personal and political use of public resources, and prohibitions against gifts of public funds; • Governmental transparency laws, including financial disclosure requirements and open government laws (the Brown Act and Public Records Act);
• Laws relating to fair processes, including fair contracting requirements, common law bias requirements, and due process.

3.6.1 Enforcement
• Noncompliant Council or advisory body members may not attend conferences or training (except ethics training), using tickets provided through the City’s ticket distribution program at the City’s expense, during the period of noncompliance;
• Should noncompliance by an advisory body member continue for 30 days without substantiated extenuating circumstances such as illness, disability, family tragedy, etc., the City Clerk is directed to bring the matter to the City Council for consideration of removing the advisory body member from service on their respective body; and
• Training deadlines may be temporarily postponed for noncompliant advisory body members who are temporarily unable to fulfill their duties, including attending scheduled meetings. Training must be completed within 60 days of returning to service.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 25
Menifee Mayor and City Council
January 18, 2023
Page
1029 of 1063

17Chapter 4 - Communications

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020
CHAPTER 4—COMMUNICATIONS

4.1 Written Communications

4.1.1 Written communications addressed to the City Council and all commission legislative bodies are to be referred to the City Clerk for:

Forwarding to the Council and Commissioners with their agenda packet, or place in their in-box.

4.2 Request for Staff Resources

4.2.1 Council requests for research or other staff work must be directed to the City Manager, or to the City Attorney if regarding legal matters.

If more than one hour of staff time will be required to complete the task/project, the item will be agendized to ask the City Council if time should be spent on preparing a report on the proposed item.

Staff responses prepared to Council inquiries shall be distributed to all City Councilmembers through the Council monthly update.

4.3 Relationship/Communications with Staff
Staff serves the City Council, through the authority of the City Manager, as a whole, therefore:

4.3.1 A Councilmember shall not direct staff to initiate any action, change a course of action, or prepare any report. A Councilmember shall not initiate any project or study without the approval of the majority of the Council.

4.3.2 Councilmembers shall not attempt to pressure or influence discussions, recommendations, workloads, schedules, or department priorities absent the approval of a majority of the Council.

4.3.3 When preparing for Council meetings, Councilmembers should direct questions ahead of time to the City Manager during Council briefings so that staff can provide the desired information at the Council meeting.

4.3.4 Any concerns by a member of the City Council regarding the behavior or work of a City employee should be directed to the City Manager privately to ensure the concern is resolved. Councilmembers shall not reprimand employees directly nor should they communicate their concerns to anyone other than the City Manager.

4.3.5 Councilmembers may direct routine inquiries to the City Manager.

4.3.6 Councilmembers serving on Council committees or as the City’s representative to an outside agency may interact directly with City staff assigned to that effort as the City Manager’s designee. The City staff member so designated and assigned will keep the City Manager appropriately informed.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 26
Menifee Mayor and City Council
January 18, 2023
Page
1030 of 1063

18 Chapter 4 - Communications

4.3.7 Soliciting political support from staff (e.g., financial contributions, display of posters or lawn signs, name on support list, etc.) is prohibited. City staff may, as private citizens with constitutional rights, support political candidates, but all such activities must be done away from the workplace and may not be conducted while in uniform.

4.4 Council Relationship/Communication with Council Advisory Bodies

4.4.1 Councilmembers shall not attempt to pressure or influence commission, or committee decisions, recommendations, or priorities absent the approval of the majority of the Council. However, a majority vote of the City Council can authorize a work item for an advisory body under certain circumstances.

4.5 Handling of Litigation and Other Confidential Information

4.5.1 All written materials and verbal information provided to Councilmembers on matters that are confidential and/or privileged under State law shall be kept in complete confidence to ensure that the City’s position is not compromised. No disclosure or mention of any information in these materials may be made to anyone other than Councilmembers, the City Attorney, or City Manager.

4.5.1.1 Confidential materials provided in preparation for and during Closed Sessions shall not be retained and electronic copies must be deleted or documents returned to staff at the conclusion of the Closed Session.

4.5.1.2 Confidential materials provided to Councilmembers outside of Closed Sessions must be destroyed, deleted, or returned to staff within thirty (30) days of their receipt.

4.5.1.3 Councilmembers may not request confidential written information from staff that has not been provided to all Councilmembers.

4.6 Representing an Official City Position

4.6.1 City Councilmembers may use their title only when conducting official City business, for information purposes, or as an indication of background and expertise, carefully considering whether they are exceeding or appearing to exceed their authority.

4.6.2 Once the City Council has taken a position on an issue, all official City correspondence regarding that issue will reflect the Council’s adopted position.

4.6.3 In most instances, the Council will authorize the Mayor, at a public City Council meeting, to send letters stating the City’s official position to appropriate legislators.

4.6.4 If any Councilmember would like to prepare a letter, the City Manager must authorize it.

4.6.5 If a member of the City Council appears before another governmental agency organization to give a statement on an issue affecting the City, the Councilmember should indicate the majority position and opinion of the Council.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 27
Menifee Mayor and City Council
January 18, 2023
Page
1031 of 1063

19Chapter 4 - Communications

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020

4.6.6 Personal opinions and comments may be expressed only if the Councilmember clarifies that these statements do not reflect the official position of the City Council.

4.7 Quasi-Judicial Role/Ex Parte Contacts
The City Council has a number of roles. It legislates and makes administrative and executive decisions. The Council also acts in a quasi-judicial capacity or “like a judge” when it rules on various permits, licenses, and land use entitlements.

In this last capacity, quasi-judicial, the Council holds a hearing, takes evidence, determines what the evidence shows, and exercises its discretion in applying the facts to the law shown by the evidence. It is to these proceedings that the rule relative to ex parte contacts applies.

4.7.1 Ex Parte Contacts/Fair Hearings. The Council shall refrain from receiving information and evidence on any quasi-judicial matter while such matter is pending before the City Council or any agency, board, or commission thereof, except at the public hearing.

As an elected official, it is often impossible to avoid such contacts and exposure to information. Therefore, if any member is exposed to information or evidence about a pending matter outside of the public hearing, through contacts by constituents, the applicant or through site visits, the member shall disclose all such information and/or evidence acquired from such contacts, which is not otherwise included in the written or oral staff report, during the public hearing, and before the public comments period is opened.

Matters are “pending” when an application has been filed. Information and evidence gained by members via their attendance at noticed public hearings before subordinate boards and commissions are not subject to this rule.

4.8 No Attorney-Client Relationship
Councilmembers who consult the City Attorney, his or her staff, and/or attorney(s) contracted to work on behalf of the City cannot enjoy or establish an attorney-client relationship with said attorney(s) by consulting with or speaking to same. Any attorney-client relationship established belongs to the City, acting through the City Council, and as may be allowed in State law for purposes of defending the City and/or the City Council in the course of litigation and/or administrative procedures, etc.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 28
Menifee Mayor and City Council
January 18, 2023
Page
1032 of 1063

20 Chapter 5 - Council Advisory Bodies
CHAPTER 5—COUNCIL ADVISORY BODIES

5.1 Commissions, and Committees Generally

5.1.1 The City of Menifee City Municipal Code establishes the following commissions to advise the City Council, and adopted resolutions establishing the following committees:
• Planning Commission
• Parks, Recreation , and Trails Commission
• Senior Advisory Committee
• Measure DD Oversight Committee
• Menifee Citizens Advisory Committee

5.1.2 The City Municipal Code authorizes the City Council to establish additional advisory boards and commissions to assist the Council in its policy decisions. The City Council has the inherent power to create committees.

5.1.3 City commissions, and committees (collectively “Council advisory bodies”) do not set or establish City policy or administrative direction to City staff.

5.1.4 Appointments to commissions and committees are made by each City Councilmember, in his or her sole discretion. Appointees to Council advisory bodies serve at the pleasure of the City Council.

5.1.5 Commissions typically have broader policy and advisory responsibilities than committees, which typically have much more focused advisory roles to the Council, such as Senior Advisory and Measure DD Committees.

5.2 Commission and Committee Organization and Conduct

5.2.1 Annually, each commission and committee elects one of their members to serve as the presiding officer or chair.

5.2.2 Commissions, and Committees established by the City Council shall hold regular and special meetings as may be required. The conduct of commission and committee meetings are governed by the same rules of policy and procedure as the City Council.

5.2.3 Commissions, and Committees should comply with all applicable open meeting and conflict-of- interest laws of the State.

5.2.4 Upon appointment or reappointment, Council advisory body members shall sign affirming they have read and understand this City of Menifee City Council Code of Ethics.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 29
Menifee Mayor and City Council
January 18, 2023
Page
1033 of 1063

21Chapter 5 - Council Advisory Bodies

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020

5.3 Commission, and Committee Appointments

5.3.1 The City requires that members of City commissions be qualified electors of the City (resident of City of Menifee and United States citizen).

Appointments will provide, as nearly as possible, a representative balance of the broad population of the City. All appointees should bring the skill, integrity, knowledge, interest, and commitment to evaluating issues in the broad context of the public interest.

5.3.2 The term of office for each commission and committee member generally expires upon office of the same term as the appointing City Councilmember, or Mayor.

5.3.3 The City Clerk provides application forms and maintains a composite listing of all applications on file which have been received.

5.3.4 The City Clerk solicits applications for vacancies in accordance with the procedures outlined in Government Code section 54974.

5.3.5 Persons being considered for appointment (or reappointment) may be interviewed at least once to qualify for appointment.

5.4 Commissions, and Committees—Vacancy of Office

5.4.1 If a member of a commission or committee is absent from three regular meetings of such commission or committee consecutively or from six regular meetings within a calendar year, or is convicted of a fraud, bribery, embezzlement, corruption, or any like crime involving dishonesty or abuse of trust (collectively, “crimes of moral turpitude”), or ceases to be a qualified elector and resident of the City, that office shall become vacant upon the declaration of Council. The Council may, for good cause, determine that a vacancy has been created.

5.4.2 Resignations may be submitted at any time to the City Council either directly or through the commission or committee chair. Resignations are effective upon submittal.

5.4.3 Upon notice of a vacancy, the Council Appointments shall initiate the appointment procedure detailed in City Council, Commission, and Committee Appointments, leading to a recommendation to the City Council for a successor of such vacancy and the successor will be appointed to serve only to the date of the unexpired term pursuant the City Municipal Code.

5.5 Commissions, and Committees—Removal

5.5.1 A Commissioner, or Committee member is subject to removal by motion of the City Council adopted by at least a simple majority of votes, or by the Councilmember which made the appointment.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 30
Menifee Mayor and City Council
January 18, 2023
Page
1034 of 1063

22 Chapter 6 - Meetings
CHAPTER 6—MEETINGS

6.1. Ralph M. Brown Act
All meetings of the City Council, standing Councilmember committees, and Council advisory bodies are governed by the Ralph M. Brown Act (Government Code 54950 et seq.). The City Council views the Brown Act as a minimum set of standards and in several respects, the City’s open meeting requirements meet or exceed the requirements of the Brown Act.

If any member of a City legislative body, or City staff, believe that action has been taken on an item in contravention of the Brown Act, that person is privileged to place the item on a future agenda for reconsideration and/or action.

6.2 Regular Meetings

6.2.1 City Council Policy No. 01 establishes the Rules of Decorum and Procedures for the Conduct of City Council Meetings. The policy outlines the order of agenda items, rules of procedure and decorum.

The policy applies to the Planning Commission and other City committees and commissions subject to the Brown Act and shall apply to the City Council Chambers or any other location where a meeting subject to these rules takes place.

6.3 Special and Emergency Meetings

6.3.1 Pursuant to the Ralph M. Brown Act, the Council may also hold special or emergency meetings as deemed necessary.

6.4 Meeting Agendas

6.4.1 Preparation of Agendas

6.4.1.1 Council agendas and supporting information are prepared by the City Manager and City Clerk.

6.4.1.2 For Council advisory bodies and Councilmember committees, agendas and supporting information are prepared by the supporting City department to the Council advisory body or Councilmember committee as directed by the City Manager.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 31
Menifee Mayor and City Council
January 18, 2023
Page
1035 of 1063

23Chapter 6 - Meetings

CITY COUNCIL CODE OF ETHICS
ADOPTED 07/15/2020

6.4.2 Placing Items on Agendas

6.4.2.1 Council Agendas

6.4.2.1.1 The City Manager in conjunction with staff shall have the primary responsibility for placing matters on the City Council agenda in accord with the identified City needs and scheduling.

6.4.2.1.2 The Mayor and Councilmembers may add an item to the agenda in a public meeting as stated in …. All regular City Council Agendas shall include an item entitled “Future Agenda Requests from Councilmembers.” See section

6.6.3, No. 15.

6.5 Agenda Packets

6.5.1 Agenda packets are to be made available at City Hall, the City Clerk’s Office, the City’s web site (www.cityofmenifee.us), and at the Council meeting.

Regular Council meeting agendas, minutes, and staff reports are generally available beginning the Friday evening before each Council meeting.

NOTE: Also refer to City Council Policy No. 01, Rules of Decorum and Procedures, which sets forth the rules of procedure for the conduct of City business.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 32
Menifee Mayor and City Council
January 18, 2023
Page
1036 of 1063

24 Chapter 7 - Council Financial Matters
CHAPTER 7—COUNCIL FINANCIAL MATTERS

7.1 Compensation

7.1.1 Pursuant to Section 2.04.040 of the City of Menifee City Municipal Code, each Councilmember will receive a monthly salary.

7.1.2 The Mayor receives a monthly salary equal to the salary of a Councilmember plus an additional $100 per month.

7.1.3 The City Council has no power to increase its salary by ordinance, resolution, or motion.

7.2 Benefits

7.2.1 The California Government Code provides that Councilmembers may receive health, retirement, and other benefits.

7.2.2 City-funded medical, dental, optical, and life insurance plan benefits are provided; the same as offered to staff.

7.3 City Council Budget and Expenses

7.3.1 City Council Policy No. 02, Reimbursement of Expenses for City Business for Elected or Appointed Officials and City Employees, provides policy guidance regarding Council expenditures for equipment, supplies and communications; travel; local expenses; and expenses charged against the City Council budget.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 33
Menifee Mayor and City Council
January 18, 2023
Page
1037 of 1063

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 34
Menifee Mayor and City Council
January 18, 2023
Page
1038 of 1063

26 Chapter 7 - Council Financial Matters
New. Better. Best.

Item Title: 12.5
Procedures and Policies Applicable to City Council Meetings Item Page Number: 35
Menifee Mayor and City Council
January 18, 2023
Page
1039 of 1063

CITY OF MENIFEE
City Council Policy
Subject
Rules of Decorum and Procedures for the
Conduct of City Council Meetings
Policy No: CC-01
Effective Date:

October 1, 2008
Revision Date: May 4,
2016

Page 1 of 16 ends

Menifee City CouncilJanuary 18, 2023

Menifee City Council
January 18, 2023